National Education Policy (NEP) is a comprehensive framework to guide the development of education in the country.

In July 2020, Union Cabinet cleared a new National Education Policy (NEP). The latest policy is India’s third. The first came in 1968 and the second in 1986. The latest policy replaces the 1986 NEP which was in place for 34 years. The NEP 2020 aims at making India a Global Knowledge Superpower.

The new NEP proposes sweeping changes including opening up of Indian higher education to foreign universities, dismantling of the UGC and the All India Council for Technical Education (AICTE), introduction of a four-year multidisciplinary undergraduate programme with multiple exit options, and discontinuation of the M Phil programme.

In school education, the policy focuses on overhauling the curriculum, “easier” Board exams, a reduction in the syllabus to retain “core essentials” and thrust on “experiential learning and critical thinking”.

In a significant shift from the 1986 policy, which pushed for a 10+2 structure of school education, the new NEP pitches for a “5+3+3+4” design corresponding to the age groups 3-8 years (foundational stage), 8-11 (preparatory), 11-14 (middle), and 14-18 (secondary). This brings early childhood education (also known as pre-school education for children of ages 3 to 5) under the ambit of formal schooling.

The NEP says students until Class 5 should be taught in their mother tongue or regional language. The policy also proposes phasing out of all institutions offering single streams and that all universities and colleges must aim to become multidisciplinary by 2040.

Key highlights of the NEP 2020:

School Education:

• The current 10+2 system to be replaced by a new 5+3+3+4 curricular structure corresponding to ages 3-8, 8-11, 11-14, and 14-18 years respectively.

• Bring the uncovered age group of 3-6 years under school curriculum, which has been recognized globally as the crucial stage for development of mental faculties of a child.

• Class 10 and 12 board examinations to be made easier, to test core competencies rather than memorized facts, with all students allowed to take the exam twice.

• School governance is set to change, with a new accreditation framework and an independent authority to regulate both public and private schools.

• Vocational Education to start from Class 6 with Internships.

• Teaching up to at least Grade 5 to be in mother tongue/regional language. No language will be imposed on any student.

• Assessment reforms with 360 degree Holistic Progress Card, tracking Student Progress for achieving Learning Outcomes

Higher Education:

• Holistic Undergraduate education with a flexible curriculum can be of 3 or 4 years with multiple exit options and appropriate certification within this period.

• Holistic Undergraduate education with a flexible curriculum can be of 3 or 4 years with multiple exit options and appropriate certification within this period.

• M.Phil courses will be discontinued and all the courses at undergraduate, postgraduate and PhD level will now be interdisciplinary.

• Academic Bank of Credits to be established to facilitate Transfer of Credits.

• Multidisciplinary Education and Research Universities (MERUs), at par with IITs, IIMs, to be set up as models of best multidisciplinary education of global standards in the country.

• The National Research Foundation will be created as an apex body for fostering a strong research culture and building research capacity across higher education.

• Higher Education Commission of India (HECI) will be set up as a single umbrella body for the entire higher education, excluding medical and legal education.

Other Changes:

• An autonomous body, the National Educational Technology Forum (NETF), will be created to provide a platform for the free exchange of ideas on the use of technology to enhance learning, assessment, planning, administration.

• National Assessment Centre- ‘PARAKH’ has been created to assess the students.

• It also paves the way for foreign universities to set up campuses in India.

• It emphasizes setting up of Gender Inclusion Fund, Special Education Zones for disadvantaged regions and groups.

• National Institute for Pali, Persian and Prakrit, Indian Institute of Translation and Interpretation to be set up.

• It also aims to increase the public investment in the Education sector to reach 6% of GDP at the earliest. Currently India spends around 4.6% of its total GDP on education.

Merits of National Education Policy 2020:

• Comprehensive: NEP seeks to address the entire gamut of education from preschool to doctoral studies, and from professional degrees to vocational training.

• Early Childhood Education: In adopting a 5+3+3+4 model for school education starting at age 3, the New education Policy recognizes the primacy of the formative years from ages 3 to 8 in shaping the child’s future

• Easy on Regulations: NEP 2020 makes a bold prescription to free our schools, colleges and universities from periodic “inspections” and place them on the path of self-assessment and voluntary declaration

• Holistic: The policy, inter alia, aims to eliminate problems of pedagogy, structural inequities, access asymmetries and rampant commercialization.

• Promote Inclusion: The Policy proposes the creation of ‘inclusion funds’ to help socially and educationally disadvantaged children pursue education

Challenges to National Education Policy 2020:

Cooperation from States: Any educational reform can be implemented only with support from the States, and the Centre has the giant task of building a consensus on the many ambitious plans The idea of a National Higher Education Regulatory Council as an apex control organisation is bound to be resented by States.

Inadequate check on donations: Fee regulations exist in some States even now, but the regulatory process is unable to rein in profiteering in the form of unaccounted donations.

Funding: Progress on these crucially depends on the will to spend the promised 6% of GDP as public expenditure on education.

Way Forward:

The NEP only provides a broad direction and is not mandatory to follow. Since education is a concurrent subject (both the Centre and the state governments can make laws on it), the reforms proposed can only be implemented collaboratively by the Centre and the states. This will not happen immediately. The incumbent government has set a target of 2040 to implement the entire policy.

NEP 2020 is a progressive shift towards a more scientific approach to education. The prescribed structure will help to cater the ability of the child – stages of cognitive development as well as social and physical awareness. If implemented in its true vision, the new structure can bring India at par with the leading countries of the world.

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To build a strong nation, we need an independent national economy. So what does an independent national economy mean? Building an independent national economy means building an economy which is free from dependence on others and which stands on its own feet, an economy which serves one’s own people and develops on the strength of the resources of one’s own country and by the efforts of one’s own people. Such an economy makes it possible to develop the productive forces quickly by utilizing the nation’s natural resources in a rational and integrated way, improve the people’s living standard continuously, strengthen the material and technical foundations of socialism, and increase the nation’s political, economic and military power.

Government of India has put great impetus towards this goal. A ‘Make in India’ movement was started by the Government of India in 2014 to encourage companies to manufacture products in India and enthuse dedicated investments into manufacturing to boost Indian economy. The goal was to have indigenous manufacturing of all kinds of products to reduce import dependence and boost exports.

Some have misunderstood this as to boycott foreign brands and adopt desi ones. Whereas, the movement is actually to buy goods manufactured in India rather than buying imported goods. The intent here is to reduce dependence on imports and encourage local manufacturing. Reduction in imports will save the country a lot of money in foreign exchange which can be used to develop infrastructure in the country. At the same time, local manufacturing will provide employment to the people of country and boost development of science and technology.

So considering above argument, anything which is manufactured in India whether by a multinational company or an Indian company is local for us.

One important lesson COVID-19 has taught us is that we have capacity and capability to mass produce quality products. This is evident from the fact that within a few weeks of the pendemic outbreak, we ramped up our production facilities to manufacture required medicines and medical equipment within the country, majority of which otherwise was being imported.

Many multinational companies have already set up manufacturing units in India and procure raw material locally. Even though their mobile phones, television sets, toothpastes and soaps, and apparel will retain the global brand ethos in consumer campaigns and communication they will be manufactured locally and contribute to our economy.

Unilever, Colgate, Procter & Gamble, Nestle, Mondelez, Sony, LG, Samsung and Xiaomi are among MNCs that produce or assemble 90-100% of their portfolio in India. Electronic companies are expanding their R&D facilities and component sourcing from India.

As the manufacturing increases, especially with more foreign investments and MNCs setting up factories in India, distinction between foreign (MNC) and desi brands will decrease.

As the Prime Minister recently said, the way ahead lies in local. Local manufacturing, local markets, local supply chain. Local is not merely a need but a responsibility.

The journey which started humble & now after achievements like PSLV, GSLV, Cryo engines, MOM, Moon & now a moon lander has put India in the league of handful of countries who can boast of possessing such technology.

India’s Space journey started when ISRO built India’s first satellite, Aryabhata, which was launched by the Soviet Union on April 19, 1975. Five years later, Rohini became the first satellite to be placed into orbit by an Indian-made launch vehicle, SLV-3. In 1992, ISRO launched Augmented Satellite Launch Vehicle (ASLV) & Insat – 2A.

In the last decade the Indian space program leap frogged to break several world records and position India as a country with formidable space technology which is cutting edge as well as cheap. Some of these achievements include:

• In 2008, ISRO sent an unmanned lunar orbiter, Chandrayaan-1, into orbit. The spacecraft was orbiting around the Moon at a height of 100 km from the lunar surface for chemical, mineralogical and photo-geologic mapping of the Moon.
• India launched Mars Orbiter Mission on 5 November 2013 and entered Mars’ orbit on 24 September, 2014, making India the first nation to succeed on its maiden attempt to Mars.
• On 15 February 2017, ISRO launched 104 satellites in a single rocket (PSLV-C37), a world record. ISRO launched its heaviest rocket, Geosynchronous Satellite Launch Vehicle-Mark III (GSLV-Mk III)
• On 5 June, 2017 and placed a communications satellite GSAT-19 into the orbit. ISRO successfully launched GSAT-29 satellite from Sriharikota, the heaviest satellite weighing at 3,423 kg aims at providing better communication for remote areas of country.
• On November 14, 2018 Indian Space Research Organization (ISRO) launched a communication satellite GSAT-29 on its rocket GSLV-Mk-III D2 from Satish Dhawan Space Center at Sriharikota.

For any developing country the space program is important for two reasons; first, tangible benefits to society and its people. Second, these space programs often are tied to the country’s broader development objectives, including building a national science and technology base. India’s space program has contributed to the country’s economic growth, supported beneficial societal applications, and helped to build broader scientific and technical capacities  and  infrastructure.

The programmes/ missions drawn up and proposed by Indian Space Research Organization (ISRO) for the socio-economic development of the country include

1. Earth Observation programme for natural resources inventory and management (like agriculture, land and water resources, fisheries), near real time disaster management support, weather forecasting, smart governance;
2. Satellite Communication programmes for telecommunication, television broadcasting, Direct-to-Home services, search and rescue, tele-education, telemedicine and
3. Satellite Navigation programme for location based services.

India has not only used its space program to develop the country but the region. India launched a communication satellite in 2017 known as SAARC satellite for use of all members of South Asian Association for Regional Cooperation. The South Asia Satellite provides crucial information on tele-medicine, tele-education, banking and television broadcasting opportunities. It is also equipped with remote sensing state of the art technology which enables collection of real-time weather data and helps in observations of the geology of the South Asian nations.

Where the advancement in space and rocket technology has helped India strengthen its defence, India’s space program has primarily been driven for the development of the country and region.

The Economic Survey 2019 presented by Chief Economic Adviser (CEA) Krishnamurthy Subramanian focusses on moving to a “virtuous cycle” of savings, investments and exports to transform India into a $5 trillion economy in the next five years. The focus is on boosting services sector contribution to $ 3 trillion, manufacturing to $ 1 trillion and Agriculture to $ 1 trillion.

However, the recent economic slowdown has made critics question the ambitious target. Also, in current context of Corona Virus outbreak which has induced virtual lockdown of the economy of the country, it becomes more important to discuss if this target is achievable.

To achieve a 5 trillion economy in half a decade, the average inflation rate every year has to be low, preferably less than 3% which is a global average. Also, the average exchange rate of a dollar in rupee must be below Rs.70.

India has a light dependency burden because 3 out of 5 people in India are in most productive age of 18 to 55 years. However, can India benefit out of this huge demographic dividend by providing good education and appropriate skills to produce a formidable work force, will determine if it can achieve its goal.

Since, urban centres occupy only 4% of earth mass but account for 81% of the global GDP today, urbanization has come to occupy centre piece in the quest for higher GDP growth, which again has to be sustainable yet rapid to be a long term development.

India’s share in global exports is merely 3%. Indian economy is domestic market driven (above 70% of the GDP) which has the good point of internal strength and protection from external economic shocks, but is limited by the fact that India, unlike China, misses the high price benefits of exports. Boost in exports will is a key to growing economy.

Less than 20% of Indian women work in the economy outside their homes, while the number is around 48% globally. This 30% gap is making India lose an estimated value of $700 billion of GDP which itself can drag the current GDP higher by 25%.

For GDP revamp and growth, agrarian economy of India is still a major domain to look at with 58% of the population being involved in agriculture directly or indirectly, a large part of them being impoverished landless agricultural labourers. The sector needs a quick revamp of technology, better organized markets, contract farming at a large scale, and a more robust roads infrastructure.

To achieve 5 trillion GDP by 2025, we need a GDP growth-rate per year to the tune of 11.5%, whereas we are now at 4.7% in the last quarter. Government has taken steps in this direction is also indisputable. The incumbent government had taken landmark steps in its previous stint such as the implementation of demonetization, the goods and services tax as well as the insolvency and bankruptcy code towards building a healthy, robust and transparent ecosystem. Government also will need to take into account the effect of increasing Non Performing Assests (NPAs) on the economy.

Government of India rightly abolished 1300 obsolete laws, and we have gone 65 positions up in the ease of doing business index. But still 115 districts are extremely backward on the 49 crucial indicators of education, health, skills, nutrition, etc. Without lifting them up, India cannot go among the first 30 nations on this parameter, only then can India gets into the developed nations club. Yet, much more is needed to realise the dream. Real reforms are needed.

There is also the need for rapid digitization to achieve 5 trillion economy at an early date. Digitization will enhance speed, transparency, and decrease delays and corruption in all business transactions.

The COVID-19 pandemic is having a “severe” effect on the world economy and is expected to cause a -3% change (i.e., a contraction) in global output in 2020. According to WEO India’s growth is expected to dip to 1.9% in 2020 and rebound to 7.4% in 2021 which is still a positive outlook since all major economies are projected to be in recession during this period.

So, one thing is clear that the economy will surely touch 5 trillion, but when no one can be sure about.

Impact on global economy

Even though the full impact of the pandemic will not be known until the its effects peak, experts estimate that if the current conditions of lockdown persist, the global trade could fall between 13% to 32% resulting in trimming the global economic growth by as much as 2%. We take a look at how this pandemic may affect the global as well as Indian economy.

Since the virus was first diagnosed in Wuhan, China, it has spread across the globe in an accelerated rate. The World Health Organization (WHO) first declared COVID-19 as a health emergency in January 2020 and later on March 11, 2020 it was officially declared as pandemic. As on date over 2 million people are have been infected and over hundred thousand dead. Europe and USA are the worst affected countries at this point in time.

The global pandemic is affecting a broad swath of international economic and trade activities, from services generally to tourism and hospitality, medical supplies and other global value chains, consumer electronics, and financial markets to energy, transportation, food, and a range of social activities, to name a few. The health and economic crises could have a particularly negative impact on the economies of developing countries that are constrained by limited financial resources and where health systems could quickly become overloaded. Efforts to reduce social interaction to contain the spread of the virus are disrupting the daily lives of most of the people across the globe and adding to the economic costs.

According to the latest estimates by the Organization for Economic Cooperation and Development (OECD), the current containment measures could reduce global GDP by 2.0% per month, or an annualized rate of24%, approaching the level of economic decline not experienced since the Great Depression of the1930s.

Before the COVID-19 outbreak, the global economy was struggling to regain a broad-based recovery as a result of the lingering impact of growing trade protectionism, trade disputes among major trading partners, falling commodity and energy prices, and economic uncertainties in Europe over the impact of theUK withdrawal from the European Union. Individually, each of these issues presented a solvable challenge for the global economy. Collectively, however, the issues weakened the global economy and reduced the available policy flexibility of many national leaders, especially among the leading developed economies.

According to an April 8, 2020,forecast by the World Trade Organization, global trade volumes are projected to decline between 13% and32% in 2020 as a result of the economic impact of COVID-19. The forecast estimates indicate that all geographic regions will experience a double-digit drop in trade volumes, except for “other regions,” which consists of Africa, the Middle East, and the Commonwealth of Independent States. The forecast also projects those sectors with extensive value chains, such as automobile products and electronics, could experience the steepest declines. Although services are not included in the WTO forecast, this segment of the economy could experience the largest disruption as a consequence of restrictions on travel and transport and the closure of retail and hospitality establishments.

Effect on Indian economy

Experts, both global and domestic, are unanimous that the Covid-19 pandemic will be a huge economic effect on Indian economy. Even though the country may not slip into a recession, unlike the Eurozone, the US, or Asia-Pacific, the impact on India’s GDP growth will be significant. Moody’s Investors Service, on March 27, sharply slashed its projection for India’s GDP growth in calendar year 2020 from 5.3% to 2.5%.

India went into lockdown from March 24, 2020 for three weeks which was extended by another 20 days to May 4, 2020. The lockdown would severely impact the supply side of the economy, that is, production and distribution of goods and services. In an economy already reeling under a demand depression, rising unemployment, and lowering of industrial output and profits, all of which happening together for several quarters now, a supply-side constraint would deliver a big blow, jeopardising growth prospects and social and economic wellbeing of a large number of people.

Even the rural economy in India will be adversely affected because the pandemic has brought lockdown at the time of crop harvest. Absence of labour force and transportation problems will have serious implications on the agriculture sector of India which forms a large part of Indian economy.

On the brighter side some experts claim the Indian economy may fair better than other countries because India is less dependent on exports. According to them, India won’t suffer if globalization is put on reverse gear and new trade barriers are imposed. Plummeting crude oil prices will also help India to recover in short term. The extent of slowdown on Indian economy will depend on the government’s economic response to the crisis in the coming days.

While the level of economic effects will eventually become clearer, the response to the pandemic could have a significant and enduring impact on the way businesses organize their work forces, global supply chains, and how governments respond to a global health crisis.

What is Cashless Economy?

Cashless Economy can be defined as a situation in which the flow of cash within an economy is non-existent and all transactions must be through electronic channels such as direct debit, credit cards, debit cards, electronic clearing, and payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) in India.

‘Digital India’ program with moto “Faceless, Paperless, Cashless” became a flagship program of the NDA government as soon as it came to power in 2014. The government undertook several steps to drive India towards a cashless economy, including the announcement of demonetization in November 2016. Online payment has seen an extensive growth due to Digital India campaign and Demonetisation.

Benefits of Cashless Economy

• Cost Reduction – Cashless systems bring down the cost of transactions since all transactions are done digitally. A large amount of money is saved by the government which otherwise would have to be spent on printing, storing and transporting currency.
• Risk Reduction – Risk of theft or loss of money is minimal since individuals do not need to carry cash with them. People carry cards for digital transactions. Even if the cards are stolen or lost they can be immediately blocked without any loss of money.
• Convenience – Ease of conducting financial transactions is the biggest advantage and motivator to shift to digital transactions. Individuals do not need to carry huge amounts of cash, transactions can be done 24×7, even cash if required is available through ATMs on demand.
• Tracking Spends – All digital transactions are recorded and can be tracked. It offers convenience for users to manage their finances better.
• Increase in Tax Base – Since all transactions can be tracked, it brings transparency in all financial transactions. This enables government to curb corruption and track tax evaders.
• Containment of Parallel Economy – Since, in a cashless economy all transactions are dne through organized channels, through banks and financial institutions unlike the cash based economy, it is easier to track black money and corrupt financial practices.

Challenges to the Cashless Economy in India

• Illiteracy – A huge chunk of population, especially in rural India is still illiterate. Without the basic knowledge to read and write, introducing a cashless economy is more of a distant reality for this population. Despite government’s thorough attempt at inclusive banking, the lack of basic education discourages the use of technology.
• Unorganized Labour Market – About 90% of the Indian labor market is informal. Majority being employed in agriculture and manufacturing sector where daily wage is prevalent. Under such circumstances the informal labor market is heavily cash dependant.
• Inadequate Internet connectivity – Broadband connections are still a rare phenomenon in Indian cities but it’s an even rarer facility in small towns or villages. Wireless medium suffers from a major crunch in bandwidth which cannot solve the problem of poor connectivity. This is a major hurdle in successful implementation of cashless technology.
• Cyber Security – The absence of robust cyber security laws in India is a major threat to the country’s dream of a cash-less economy. Instances like the massive security breach of 32 lakh debit cards, just months before demonetisation, is a strong indication that the country is yet to develop an efficient cyber-security system.

Is India ready for the Cashless Economy?

With government’s huge push in different sectors India is getting ready for the Cashless Economy at a very fast pace. Low cost of mobile telephone and data is increasing telecom customer base exponentially. Significant steps by government like demonetization, Direct Benefit Transfers, BHIM and UPI are encouraging steps towards Cashless Economy.

Being one of the fastest growing economies in the world, India seems to be at the forefront of economic innovations. Over time, via technological advancements and Government support, it can be concluded that India is gearing up for a digitally enabled cashless economy – and it will happen much sooner than what is anticipated, and that too on a significant scale.

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India pledged to develop the Chabahar port with initial investment of $500 million as a part of trilateral engagement between India, Iran and Afghanistan, when Indian Prime Minister Narender Modi visited Iran in 2016. The first phase of Chabahar port was inaugurated in December 2017.

Significance of Chabahar Port

The Chabahar Port is one project that has assumed significant economic and strategic importance in recent times. Before independence India had direct access to the central Asian countries. However, after creation of Pakistan, India lost its direct connection with central Asia. Even though, trade with central Asian countries is possible via Pakistan, it has not been possible due to the strained relations between India and Pakistan.

The first and foremost significance of Chabahar port is that now India can bypass Pakistan in transporting goods to Afghanistan and other central Asian countries. Indian cargo transported via the sea will now be offloaded at Chabahar, from where trucks and trains will carry it to Afghanistan and then onward to the CARs. In addition to opening up new markets for India in Afghanistan and the CARs, Chabahar will boost their economies, too, and strengthen India’s economic relationship with Iran.

With Chabahar port becoming functional, there will be a significant boost in the import of iron ore, sugar and rice to India. The import cost of oil to India will also see a considerable decline. It is estimated that the port will help India to halve the time and cost of doing business with Central Asian countries.

Chabahar port is not just about providing a gateway linking India, Iran and Afghanistan. It is a key hub in the International North-South Transport Corridor initiative, a 7,200-km-long multi-modal network of ship, rail and road routes to move cargo between India, Iran, Afghanistan, the CARs, Armenia, Azerbaijan, Russia, and Europe.

Apart from the economic advantages, Chabahar port also provides strategic advantages to India, Iran and other central Asian countries against increasing influence of China in the region. It will provide an alternate mechanism to both BRI and CPEC projects being developed in the region by China.

Chabahar would bring about the biggest breakthrough in Asian transport connectivity with enormous implications for the entire region both in terms of spurring economic prosperity and ensuring political stability.

A recession is defined in economics as three consecutive quarters of contraction in GDP. But since India is a large developing economy, contraction is a rarity. In case of India, the economy continues to grow but at a slower pace than usual for a sustained period of time. The technical term for the same is growth recession.

The growth of the Indian economy had been predominated by consumption inclusive of both — Private Final Consumption Expenditure (PFCE) as well as the Government Final Consumption Expenditure (GFCE). If consumption spending falls, then output and employment levels also fall since consumption expenditure directly impacts the other two. As a consequence, the economy would stagnate, and prices deflate. Lower prices, if unable to recover the costs, would halt the operations of any firm and would initiate the layoff process. This, in turn, reduces earnings further. Hence this vicious cycle keeps on repeating itself until the economy slips into a deeper state of shock.

In addition, another major component of India’s GDP is investment, induced by both — private and government sectors. The slackening of investment lowers the level of infrastructure development, causes hesitation in creating small businesses, stop entrepreneurs from investing in research and development, and thus stagnates technological development. For holistic growth of the economy and to gain competitive edge over others, the economy must innovate. And innovation is encouraged by investment in research and development.

In addition to these factors, the slump in the economy is also affected by the various exogenous factors. A leading dampener is the US-China trade war, which has intensified over time and has contracted world trade and, in turn, Indian exports. Also, high rates of GST, liquidity crisis in NBFCs, and shift in the behavioural pattern of the workforce due to the entry of young people has discouraged savings. When people save less in the economy, it leaves less money for investments.

Indian Economy, no doubt is passing through a sluggish economic growth since 2016 post demonetization as compared to earlier years, although efforts are being made to improve the Indian Economy’s growth to achieve the rate which may not be considered as very slow. Government however, is of the opinion that India’s economy has a better growth rate amidst global economic slowdown, if we go by the global economic growth standards. A few of the experts see it as a temporary or technical issue and think that its effects would soon fade out while others view this as a more serious crisis created by a barrage of supply-side shocks to the economy.

The World Bank President Jim Yong Kim said that the Goods and Services Tax (GST) is going to have a hugely positive impact on the Indian economy. According to him, the recent slowdown in India’s economic growth is temporary and is an “aberration” mainly due to the temporary disruptions in preparation for the GST. It will get corrected in the coming months.

Latest policy announcements by the government including withdrawal of super-rich surcharge are likely to bring back investment and create jobs, and hence push demand for consumption. If that happens, it will give a fresh kick to Indian economy.

What is Thorium?

Thorium is a basic element of nature, like Iron and Uranium. The element thorium was discovered in 1828. More than a 100 years later, in 1941, its potential as an energy source was proved. The element has some favourable characteristics making it an ideal nuclear fuel for next generation reactors; it is safe, clean, affordable and scalable.

Unlike Uranium, Thorium itself will not split and release energy. Rather, when it is exposed to neutrons, it will undergo a series of nuclear reactions until it eventually emerges as an isotope of uranium called U-233, which will readily split and release energy next time it absorbs a neutron. Thorium is therefore called fertile, whereas U-233 is called fissile.

After World War II, uranium-based nuclear reactors were built to produce electricity. These were similar to the reactor designs that produced material for nuclear weapons. Even though the usability and benefits of using Thorium had been discovered in 1950s, West’s development of nuclear energy was inextricably linked to the development of atomic bombs because uranium’s by-products are much easier to weaponise. Today all commercial nuclear plants run on enriched uranium.

Why India wants to develop Thorium Nuclear reactors?

When the nuclear research started in India, it was soon realized India had very limited resources for Uranium (only 1% to 2% of global reserves) but India possesses over 25% of global Thorium reserves. The country’s meager uranium deposits convinced the founding father of its nuclear programme, Homi Bhabha, that any long-term strategy must exploit thorium, its most abundant fuel, which inspired a three-stage programme that is still the central plank of India’s nuclear energy policy.

India’s three-stage nuclear power programme was formulated by Homi Bhabha in the 1950s to secure the country’s long term energy independence. First, conventional uranium-fueled reactors produce plutonium as a by-product. The next stage combines this with more uranium in ‘fast breeder’ reactors that generate more plutonium than they use. That’s used to build more breeder reactors, and once the fleet is large enough they switch to converting thorium into U233. The final stage combines U233 with more thorium to kick-start self-sustaining ‘thermal breeder’ reactors that can be refueled using raw thorium.

Advantages of Thorium based nuclear energy:

• Safe – There are safe methods of using thorium with no risk for meltdown or explosions. Thorium Energy is also proliferation resistant.
• Clean – Thorium reactors create zero-emission energy. The amount of waste is low both in amount and lifetime.
• Affordable – Thorium is one of the most energy-dense elements in nature, found in great quantities on all continents. There is more Thorium Energy available than in all oil, gas, coal and uranium on Earth combined
• Proven – Research into the use of Thorium Energy started in the 1950’s in the US government’s atomic lab, with successful and well-documented results.

Even though the development of Thorium Nuclear Power Plants of commercial use are still years away it is the most promising source of non-fossil fuel energy.

Some highlights and salient features of this budget are:

Taxes

• Personal income tax rates remained unchanged but additional surcharge was levied upon super rich – 3% surcharge on an income of Rs. 2 Crore and 7% on Rs. 5 Crore and above
• Corporate tax was reduced to spur growth. The rate of Corporate Tax was slashed from 30% to 25% for businesses with turnover of up to 400 Crores
• An additional cess of 1 rupee was levied on Petrol and Diesel
• Customs duty on Gold and other precious items was increased from 10% to 12.5%
• Advisory to GST council to reduce tax on electric vehicles from 12% to 5%
• Custom duty raised on items like tiles, cashew kernels, vinyl flooring, auto parts, synthetic rubber digital video recorders and CCTV cameras to promote domestic manufacturing.
• Interchange-ability of PAN and Aadhaar card to file Income Tax returns

Housing

• Additional Rs. 1.5 Lakh tax relief on home loan for purchase of house up to 45 lakhs.
• Rental laws to be reformed to promote house renting.

Economy

• Government’s external debt to GDP is among the lowest in the world. Fiscal deficit in financial year 2019 at 3.3% of GDP.

Transportation

• Government plans to launch a new ‘one nation one transport card’. It will be a universal card to travel on various modes of transport like metro, road and railways.
• Public Private Partnership to be used for faster development and delivery of passenger freight services.
• Comprehensive restructuring of National Highways to form a National Highway Grid and use rivers for transport of cargo to decongest roads and railways.

Women Empowerment

• Women SHG interest subvention programme to be expanded to all districts of India under ‘Nari to Narayani’ Scheme.
• Loans up to 1 Lakh to be provided to SHG women members under Mudra Scheme. Verified women SHG member having a ‘Jan Dhan’ account can avail Rs. 5000 over draft facility.

Divestment

• Government to continue divestment of select CPSEs and modify the present policy of retaining 51% stake in PSUs
• Divestment target for financial year 2020 set to 1.05 lakh crore.

Railways

• Budgetary allocation to railways is Rs. 65837 crores and outlay for capital expenditure is increased to highest ever amounting to 1.60 lakh crore
• New PPP model to be adopted to develop railways across India. Railways to be encouraged to invest more in suburban rail networks via SPV
• Dedicated freight corridor project to be completed by 2022. Massive program for modernization of railway stations to be launched.

Micro, Small and Medium Enterprises

• Easing of Angel Tax for start-ups. Angel tax won’t require scrutiny from I-T department for start-ups. E-verification mechanism for establishing investor identity and source of funds for start-ups.
• 2% interest subvention for GST-registered MSME on fresh or incremental loans.
• Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
• New payment platform for MSMEs to be created.

Education

• Government to launch ‘Study in India’ programme to attract foreign students in higher education.
• To unveil new education policy to propose changes in school, higher education
• Allocate Rs. 400 crore for world-class higher education institutions in financial year 2020
• National research foundation to fund, coordinate and to promote research in the country.
• New Higher Education Commission with focus on higher autonomy.

Foreign Direct Investment

• Local sourcing norms will be relaxed for the single-brand retail sector.
• Govt to open FDI in aviation, insurance, animation AVGC and media.

For Rural India

• Gaon, Garib and Kisan are the focus of our government.
• New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
• Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1, 25,000 km of road length over the next 5 years. To invest Rs 80,250 cr for up gradation of roads under PM Gram Sadak Yojana.
• Government will set up 100 new clusters for 50,000 artisans in FY 20.

Agriculture

• Govt to promote innovative zero Budget farming. 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
• 10,000 new farm produce organisations to be setup.

Space

• India has emerged as a major space power. It is time to harness our ability commercially. A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.

The budget focuses on reducing red tape, making best use of technology, building social infrastructure, digital India, pollution free India, make in India, job creation in Micro, Small and Medium Enterprises (MSMEs) and investing heavily in infrastructure.