We Need a Holistic Approach for Effective Policymaking : Daily Current Affairs

Relevance: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Key Phrases: Atmanirbhar Bharat, Sustainable Employment, Pillars of Governance, Self-sufficiency, Index of Industrial Production, Lack of a Holistic Approach, Development of Core Sectors, Speedy Disposal of Projects

Why in News?

India’s policy interventions need to focus on increasing gross domestic product (GDP) as well as facilitation of sustainable employment supplemented by other pillars of governance.

Key Highlights:

Atmanirbhar Bharat depends on our abilities and intent as much as policies conducive to self-sufficiency.
The impact of all the factors that push the national endeavour down and add to our import bill disturbing the balance of trade must be minimized.
The call for an Atmanirbhar Bharat (or self-sufficiency) is viewed as the best way to reduce imports, save precious foreign exchange, increase domestic production and thereby create employment.
For instance, Mining and processing minerals can put India on the world map for self-adequacy and also bring in dollars through exports and reduction of imports.

What is the key to sustainable GDP growth?

For sustainable GDP growth of 8% plus, the key is to develop the core sectors which are electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers, having a weightage of more than 40% in the Index of Industrial Production.
Electric vehicles (EV), semiconductors, medical devices, and specialty steel are among India’s key segments for domestic manufacturing.
India can never progress to give opportunities to the youth if it continues to remain a market for foreign goods.

What are the issues with India’s approach to policymaking?

The issue lies in the lack of a holistic approach which is resulting in just the reverse of what is intended, especially in India’s effort to scale up power generation and mining and manufacturing projects.
This has undermined our ability to achieve goals of self-sufficiency and employment generation.

Case Study: Sterlite Copper

Copper is a vital input for growth in the core sectors.
In Tamil Nadu, Sterlite Copper, which at one time contributed more than one-third of India’s production of this metal, has remained shut for the last three years amid protests over allegations that the plant caused environmental damage.
Its closure has led to a loss of more than 100,000 direct and indirect jobs in Thoothukudi.
The Copper Alliance estimates that an electric car requires 83kg of copper as against 23kg in an internal combustion engine, while an electric bus needs over 200kg.
The irony which arises is how green mobility will be promoted if copper dependence is so high and how will manufacturers get copper at a competitive price if the closure of just one plant i.e., Sterlite Copper has turned India into a net importer.

What should be the way forward?

Start early: Public opinion should be judged at the blueprint stage of the project. Setting up a dedicated microsite after making an official announcement wherein public comments should be invited. Educating all players, including the judiciary, about the project, its environmental impact, etc is crucial.
Use a committee of experts: It is important to set up an independent committee of experts to review the positive and negative aspects of any project and publish a report, especially if it is controversial.
Take a long-term view: This is especially important in the context of climate change. A project should not be dismissed without reviewing if it will contribute to a sustainable future.
Invite critics for dialogue: Critics represent a segment of concerned citizens who may have valid points as to why a project should not go ahead. Their opinions must be sought and evaluated and they must be co-opted as members of the committee of experts if possible. Their collective views can form the basis of corrective measures at the very blueprint stage.
Focus on curbing Illegalities: The focus of regulators should be on curbing illegalities rather than stopping operations at mines with valid leases and effective waste disposal systems.
Set up special courts: A special court can be set up for speedy disposal of projects that are in the national interest but have been stopped by legal action. Alternatively, hearing dates can be accorded priority in a regular court where the case is pending.

Conclusion:

India’s executive, legislature, judiciary, and corporates must work closely with the public to ensure that the advocacy of Atmanirbhar Bharat does not remain rhetoric and becomes a reality, setting off a virtuous cycle of growth and the projects of strategic and national importance are not stalled.
For sustained growth and generation of employment, credible, consistent, and convergent policies are needed.
The lessons must be learnt from past faultlines in policies and the large-scale economic losses brought about by court judgements in manufacturing, mining, oil and gas exploration, and power generation as in the case of Karnataka and Goa related to iron ore, thermal coal, and copper for the seamless rollout of projects by the government or private sector.

Source: Live-Mint

Mains Question:

Q. The issue with India’s policymaking lies in the lack of a holistic approach which is resulting in just the reverse of what is intended, especially in India’s effort to scale up power generation and mining and manufacturing projects. Comment. (250 words).