UPSC Essentials | Mains answer practice — GS 3 : Questions on MSMEs and India’s electricity infrastructure (Week 58)

QUESTION 2

How the adoption of sustainable practices can benefit micro, small and medium enterprises (MSMEs)?

General points on the structure of the answers

Introduction

— The introduction of the answer is essential and should be restricted to 3-5 lines. Remember, a one-liner is not a standard introduction.

— It may consist of basic information by giving some definitions from the trusted source and authentic facts.

Body

— It is the central part of the answer and one should understand the demand of the question to provide rich content.

— The answer must be preferably written as a mix of points and short paragraphs rather than using long paragraphs or just points.

QUESTION 1: Examine the implications of climate change on India’s electricity infrastructure and disaster management in the context of increasing demand and vulnerability. Discuss the measures needed to enhance resilience in the face of these challenges.

Introduction:

— The unusually high demand led to frequent power cuts in Delhi and neighbouring areas. Several places in central and eastern India faced similar or worse situations.

— The lack of electricity, combined with abnormally high night temperatures contributed to several heat-related deaths.

— The extraordinary increase in electricity demand is just one example of the stress that essential infrastructure experiences as a result of extreme weather occurrences and subsequent calamities.

— Power systems are not the only ones that are susceptible. Disasters cause disruptions to telecommunications, transportation, health services, and even cyber networks.

Body:

You may incorporate some of the following points in the body of your answer:

Implications of climate change

— Early warnings and prompt response have dramatically decreased human mortality in catastrophes, as well as economic and other damages caused by extreme weather events.

— Long-term costs, such as lost livelihoods or reduced agricultural land fertility, are substantially higher and are expected to worsen over time.

— Disasters and extreme weather events can inflict damage to key infrastructure such as transportation, telecommunications, and power supply, which is sometimes overlooked in government statistics, especially when these services are privately owned. However, this destruction causes widespread disruptions and exacerbates the tragedy.

Measures needed to face these challenges

— All infrastructure sectors should have disaster management plans in place to prepare for and respond to such incidents. For example, hospitals in disaster-prone areas are installing backup power supplies, airports and railways are taking precautions to minimise or fast drain waterlogging, and telecommunication connections are being relocated underground.

— The Coalition for Disaster Resilient Infrastructure (CDRI), an international body founded on India’s initiative, conducted an assessment of the power transmission and distribution infrastructure in Odisha, a cyclone-prone state. It discovered that the state’s infrastructure was incredibly unstable.

— CDRI was founded in 2019 with the specific goal of making vital infrastructure robust to natural disasters. CDRI, an international organisation headquartered in India, is expected to evolve into a knowledge hub for implementing these transformations.

— Disaster resilience is significantly easier and less expensive to implement during the construction process than to retrofit these characteristics later.

— All new infrastructure projects must be climate smart, not only in terms of sustainability and energy efficiency, but also disaster resilience.

— India must develop the appropriate templates for the most resilient infrastructure, capable of withstanding multi-hazard calamities.

(Source: Why India needs to build disaster resilience in its critical infrastructure by Amitabh Sinha)

Points to Ponder

Climate change

What is CDRI?

Related Previous Year Questions

The Intergovernmental Panel on Climate Change (IPCC) has predicted a global sea level rise of about one metre by AD 2100. What would be its impact in India and the other countries in the Indian Ocean region? (2023)

Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)? (2021)

QUESTION 2: How the adoption of sustainable practices can benefit micro, small and medium enterprises (MSMEs)?

Introduction:

— The UN General Assembly has designated June 27 as “Micro-, Small and Medium-Sized Enterprises Day” to raise awareness of the tremendous contributions of MSMEs to the achievement of the Sustainable Development Goals.

— They account for about 30 per cent of India’s GDP, employ 110 million workers, and have a 49 per cent share in exports. In India, 96 per cent of industrial units belong to small companies. The sector accounts for 38.4 per cent of the total manufacturing output and contributes 45.03 per cent of the country’s total exports.

— The MSME sector is growing but it faces several challenges including limited access to finance, technology and skills, inadequate infrastructure, complex regulatory and compliance requirements, and low levels of productivity and competitiveness.

— MSMEs must gradually structure their business activities in accordance with the principles in order to prepare for the future. Adopting sustainability is critical for meeting stakeholder expectations, lowering costs and increasing efficiency, improving brand reputation, generating corporate value, and impacting the environment and society.

Body:

You may incorporate some of the following points in the body of your answer:

Adoption of sustainable practices in MSMEs

— Adopting the Environment, Social, and Governance Framework (ESG) framework, as well as the nine principles of the Ministry of Corporate Affairs’ National Guidelines for Responsible Business Conduct (NGRBC), might serve as a starting point for the industry.

— The Environment, Social, and Governance Framework (ESG) framework, as well as the National Guidelines for Responsible Business Conduct (NGRBC), must be decoded.

— The ESG framework lays down key aspects around which MSMEs can address issues like energy, waste, carbon emission and factors related to the environment in their supply chain and ensure good labour practices, minimum wages, decent working conditions for workers and the safety of women. The NGRBC guidelines urge businesses to conduct responsibly and sustainably and encourage and support their suppliers, vendors, distributors, partners, and other stakeholders to follow the same.

— MSMEs should adopt good practices such as including low energy strategies, adopting renewable, waste management, safety of women, and timely wage payment.

— The governments, industry associations, civil society organisations and other stakeholders can play an active role in raising awareness, sharing best practices, and providing training and resources.

— Providing incentives to MSMEs through financial and non-financial ways can be an effective way to encourage them to adopt sustainability.

— Governments and investors can offer financial incentives such as tax benefits, subsidies, grants, and low-interest loans so that MSMEs can adopt sustainable practices or invest in sustainable technologies.

— SIDBI has launched a programme called “Greening MSME” which provides financial assistance with a maximum limit of INR 20 crores to MSMEs to implement energy-efficient and environmentally sustainable technologies.

— Larger corporations can help MSMEs implement sustainable practices by offering training, technical assistance, and financing. The CII has created a programme called the “GreenCo Rating System” to drive sustainability improvements across the value chain by ranking enterprises on their environmental performance.

Conclusion:

— MSMEs account for 90 per cent of businesses, 60 to 70 per cent of employment and 50 per cent of GDP worldwide. In the Indian economy, over the last five decades, MSMEs have emerged as one of the fastest-growing sectors.

— MSMEs that use sustainable practices can often save money, increase efficiency, and differentiate themselves from competitors, giving them a competitive advantage. Governments and other stakeholders can promote this to boost MSMEs.

(Source: How MSMEs can benefit by adopting sustainable practices by Ranjana Das)

Points to Ponder

Classification of MSMEs

Micro-, Small and Medium-Sized Enterprises Day

What is the Environment, Social and Governance Framework?

National Guidelines for Responsible Business Conduct

Related Previous Year Questions

Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard (2023)

How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal and small farmers? (2021)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 1 (Week 57)

UPSC Essentials: Mains answer practice — GS 1 (Week 56)

UPSC Essentials: Mains answer practice — GS 2 (Week 56)

UPSC Essentials: Mains answer practice — GS 2 (Week 57)

UPSC Essentials: Mains answer practice — GS 3 (Week 57)

UPSC Essentials: Mains answer practice — GS 3 (Week 56)

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