Context |
- The article discusses the imperative for Indian Higher Education Institutes to embrace micro-credentials, short-duration learning activities, as a solution to enhance student employability and address evolving educational needs.
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Introduction:
- Higher Education Institutes (HEIs) in India should actively contribute to enhancing student employability.
- There’s a gap between knowledge acquired in HEIs and skills needed for employability.
Micro-Credentials as a Solution:
- Micro-credentials are short-duration learning activities with proof of specific learning outcomes.
- They bridge the gap by offering just-in-time modern skills and competencies.
- Offer flexibility, accessibility, and advantages over traditional degrees.
Essence of Micro-Credentials:
- Offered in online, physical, or hybrid modes at various levels.
- Contrasted with macro-credentials (e.g., undergraduate degrees) that require years of study.
- Designed for life-long learners, including working professionals.
- Terminology includes digital badges, micro-master degrees, nano-degrees, and online certificates.
Key Players in Micro-Credentials:
- Various organizations such as Atingi, Alison.com, Credly, Coursera, edX, FutureLearn, Google, Linkedin, Microsoft, PwC, and Udacity.
- Many universities globally, including Australia, Canada, Europe, the UK, and the US, provide micro-credentials.
Credit System in Micro-Credentials:
- Unlike macro-credentials, micro-credentials associate credit with notional hours spent acquiring defined competencies.
- Clear quality benchmarking and regulation needed for universal validation and recognition.
- India’s National Credit Framework (NCrF) provides a basis for credit accumulation and progression.
Fostering Trust in Micro-Credentials:
- Alignment with higher education standards in delivery, assessment, grading, and qualification awarding is crucial.
- Reliable assessment methods are essential, and HEIs play a vital role in this.
- Integration with the Academic Bank of Credits (ABC) enhances portability and stackability.
Opportunities for Indian HEIs:
- National Credit Framework (NCrF) implementation in India provides an opportunity for HEIs to develop micro-credentials.
- HEIs can partner with industries to create credit-based micro-credentials within regular degree programs.
- Broader deliberations needed on the potential impact and additional value of micro-credentials in tertiary education.
Demand for Micro-Credentials in India:
- National Education Policy 2020 focuses on providing skilled education from school to higher levels.
- Employers seek skilled employees, increasing the demand for micro-credentials.
- Millions of students may view micro-credentials as a value-added advantage.
Recommendations:
- Indian HEIs should consider introducing micro-credentials as a vital element of their strategic institutional objectives.
- Regulators and HEIs should work towards harmonizing micro-credentials with existing academic programs and establish clear validation metrics.
Conclusion:
- In conclusion, the adoption of micro-credentials in Indian Higher Education offers a timely solution to bridge the knowledge-employability gap.
- Embracing this flexible approach aligns with the evolving needs of students, employers, and the transformative vision outlined in the National Education Policy 2020.
Changing gears to grow
Context: |
- As India gears up for parliamentary elections, Prime Minister Narendra Modi places his major development plank on “Viksit Bharat Sankalp by 2047” (Developed India by 2047), focusing on inclusive and sustainable growth.
- PM Modi emphasizes a promise of “Ram Rajya,” indicative of an inclusive and sustainable growth model.
- His confidence in winning more seats in this election stems from the performance of his government over the last decade and the promise of development by 2047.
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More about the news: Post-COVID Economic Recovery:
- The Modi government has shown commendable performance in the post-COVID recovery period, with the Economic Review by the Department of Economic Affairs projecting over 7% GDP growth for three consecutive years (FY22 to FY24).
- This surpasses the global average and growth in most G20 countries, instilling confidence in the economic trajectory.
Comparative Analysis: Modi Government vs. UPA Government:
- A comparative analysis of the Modi government’s 10-year tenure with the UPA government on key parameters reveals macro-economic achievements.
- India’s real GDP grew by 5.9% per annum between FY15-FY24, with a lower CPI inflation rate of 5.1% compared to 8.1% during the UPA period.
- Multidimensional poverty decreased significantly, and the unemployment rate dropped from 6% in FY18 to 3.2% in FY23.
Challenges in Agriculture Sector:
- Despite overall economic growth, challenges persist in the agriculture sector, employing 45.8% of the working population.
- The sector’s growth rate is projected to be 1.8% in FY24, raising concerns about the effectiveness of the inclusive growth model and the promise of doubling farmers’ real incomes by FY23.
Strategies for Inclusive and Sustainable Growth:
- Moving forward, achieving inclusive and environmentally sustainable growth requires reorienting subsidies towards sustainable development expenditures and fiscal consolidation.
- The interim Union budget for FY25 demonstrates a provision of Rs 47.6 trillion for expenditure and aims to reduce the fiscal deficit from 5.8% of GDP in FY24 to 5.1% in FY25.
Rationalizing Subsidies for Development Focus:
- Major welfare subsidies, including fertiliser, food, MGNREGA, and PM-KISAN, need rationalization and targeting to redirect resources towards development expenditures and environmental sustainability.
- This includes investments in agri-R&D, micro-irrigation, rural roads, agri-marketing infrastructure, and building efficient value chains.
Gender-Inclusive Initiatives:
- The FY25 budget allocates increased funds for the Department of Fisheries, Animal Husbandry, and Dairying, recognizing their significant contribution within the agri-sector.
- Additionally, there is commendable progress in the allocation for the PM Awas Yojana (Gramin), with over 70% of houses allotted to women as sole or joint owners, promoting permanent asset creation and enhancing livelihoods in rural areas.
Synchronizing MGNREGA and PM Awas Yojana:
- An innovative step in synchronizing MGNREGA in rural areas with the PM Awas Yojana is proposed, aiming to provide every household with a reasonably good shelter, aligning with the vision of “Ram Rajya” in rural areas.
Conclusion:
- The article concludes by emphasizing the need for continued efforts to achieve inclusive growth, address environmental challenges, and synchronize welfare programs for maximum impact.
- The proposed initiatives not only contribute to sustainable development but also hold the potential to influence electoral outcomes positively.
Ways to Deal with the High Govt Debt
Why in News?
- The current government will end its second term with overall public debt in excess of 80% of India’s gross domestic product (GDP) at current market prices.
What’s in Today’s Article?
- What Government/ Public Debt Entails?
- Data Related to the Public Debt in India
- Why has India’s Public Debt Spiraled?
- Scenario in Other Economies
- Ways to Deal with the High Govt Debt
What Government/ Public Debt Entails?
- Government debt is basically the outstanding domestic and foreign loans (plus other liabilities) raised by the Centre and states (to meet its development expenditure) – on which they have to pay interest and the principal amounts borrowed.
- It is measured by the debt-to-GDP ratio, which is the ratio between a country’s government debt (measured in units of currency) and its gross domestic product (GDP) (measured in units of currency per year).
- As per the Fiscal Responsibility and Budget Management (FRBM)Act 2003,
- The general government debt (Centre + states) was supposed to be brought down to 60% of GDP by 2024-25.
- The Centre’s own total outstanding liabilities were not to exceed 40% within that time schedule.
Data Related to the Public Debt in India:
- According to the International Monetary Fund (IMF), general government debt – the combined domestic and external liabilities of both the Centre and the states – touched 84.4% of GDP in 2003-04.
- That ratio fell to a low of 66.4% in 2010-11 and rose gradually to 67.7% in 2013-14 and 70.4% in 2018-19.
- The debt-GDP ratio soars to 75% in 2019-20 and peaks at 88.5% in 2020-21, before easing to 83.8% and 81% in the following two fiscal years (April-March).
- In absolute terms, the Centre’s total liabilities have more than doubled from Rs 90.84 lakh crore to Rs 183.67 lakh crore between 2018-19 and 2024-25.
- The IMF has projected the ratio at 82% in the current fiscal and 82.4% for 2024-25, which is still close to the high levels of the early 2000s.
Why has India’s Public Debt Spiraled?
- The most obvious reason is the Covid-induced disruptions that forced governments to borrow more – to fund additional public health and social safety net expenditure requirements – amid a drying up of revenues.
- The Indian government, apart from spending more on income and consumption support schemes, also stepped-up public investments in roads, railways and other infrastructure.
- The Centre’s capital expenditure dropped from 3.9% to 1.5% of GDP between 2003-04 and 2017-18.
- It revived significantly thereafter to reach 3.2% in 2023-24 and 3.4% in the Interim Budget for 2024-25.
- All these widened the deficits and only added to debt. For example, the Centre’s fiscal deficit alone increased from 3.4% of GDP in 2018-19 to 4.6% in 2019-20, 9.2% in 2020-21 and 6.8% in 2021-22.
Scenario in Other Economies:
- India was no exception though. Most countries sought to mitigate the impact of the pandemic through fiscal stimulus and relief programmes.
- General government debt climbed from 108.7% of GDP in 2019 to 133.5% in 2020 and 121.4% in 2022 for the US; from 97.4% to 115.1% and 111.7% for France; and 60.4% to 70.1% and 77.1% for China during these years.
Ways to Deal with the High Govt Debt:
- The FRBM Act envisaged limiting the Centre’s gross fiscal deficit to 3% of GDP by 2020-21.
- The Union Budget 2021-22, announced to attain a fiscal deficit-to-GDP ratio of “below 4.5%” by 2025-26.
- But given the high post-pandemic starting points in 2020-21 and 2021-22, the deficit ratios of “below 4.5%” by 2025-26 will be difficult to achieve.
- There are two other routes as well for bringing the latter down. That would involve what one may call the denominator effect.
- Government debt and fiscal deficits are usually quoted as ratios to GDP at current market prices.
- This means, high nominal GDP growth – the denominator rising faster than the numerator – can go some way in solving the government’s debt problem.
- GDP growth can be driven by both increases in real output and inflation.
- This actually happened during 2003-04 to 2010-11, when India witnessed an average annual GDP growth of 7.4% in real and 15%-plus in nominal terms after adding inflation.
- India probably needs a combination of both fiscal consolidation and growth (from output more than inflation) to deal with its current debt woes, which are also a result of Covid.