PM Narendra Modi on Youth Empowerment and Veer Bal Diwas

Prime Minister Narendra Modi emphasized the significant role of youth energy in India's progress, noting that the global community views India with hope due to its dynamic youth. Speaking at Veer Bal Diwas in New Delhi, he highlighted the continuous contribution of Indian youth from the freedom struggle to modern movements.

Government Initiatives for Youth Empowerment

• Youth-Centric Policies: The government focuses on empowering youth through various policies: 
  • Startup ecosystem development
  • Space economy advancements
  • Sports and fitness sector growth
  • Fintech and manufacturing industry support
  • Skill development and internship schemes
• Technological Advancements: Emphasized the need to prepare youth for future shifts, including AI and machine learning.

Suposhit Gram Panchayat Abhiyan

• Launched to improve nutritional outcomes and eliminate malnutrition.
• Includes a competition among anganwadis with 1,000 gram panchayats receiving Rs 1 lakh each for nutrition improvements.

Veer Bal Diwas and Historical Sacrifices

• Veer Bal Awards: Acknowledged 17 children for their bravery.
• Sahibzadas' Sacrifice: Reminded of the sacrifices by Sahib Zorawar Singh and Sahib Fateh Singh, who stood firm against the Mughal sultanate.
• Their bravery is linked with spiritual strength from historic figures like Guru Arjan Dev and Guru Gobind Singh.

Significance of Veer Bal Diwas

• Marks the 75th year of the Indian Republic and the Constitution.
• Highlights that every citizen draws inspiration from the Sahibzadas.
• Reinforces the principle that no individual is small or big, aligning with the teachings of the Gurus.

Domestic Migration in India: Key Findings

The Economic Advisory Council to the Prime Minister (EAC-PM) reported a significant slowdown in domestic migration in India, with a decrease of 11.78% in the number of migrants compared to the 2011 Census.

Migration Statistics

• Total Migrants 2023: Estimated at 40.20 crore.
• Total Migrants 2011: Recorded at 45.57 crore.
• Migration Rate 2011: 37.64% of the population.
• Migration Rate 2023: Estimated at 28.88%.

Data Sources and Methodology

• The report titled "400 Million Dreams!" utilized three datasets: 
  1. Indian Railway Unreserved Ticketing System (UTS) data on passenger volumes.
  2. Mobile telephone subscribers' roaming data from the Telecom Regulatory Authority of India (TRAI).
  3. District-level banking data on remittances.
• The method aims to provide a general trend, with accuracy pending validation from the upcoming decennial Census.

Hypothesized Causes for Slowing Migration

• Improved economic opportunities in smaller cities.
• Better services such as education, health, infrastructure, and connectivity.
• Overall economic growth contributing to reduced migration from major cities.

Migration Trends and Patterns

• Top origin districts revolve around major urban agglomerations like Delhi, Mumbai, Chennai, Bangalore, and Kolkata.
• Top recipient states now include West Bengal and Rajasthan, while Andhra Pradesh and Bihar have lowered rankings.
• Significant growth in migrant arrivals in West Bengal, Rajasthan, and Karnataka.
• Key districts attracting migrants: Mumbai, Bengaluru Urban, Howrah, Central Delhi, Hyderabad.
• Top origin districts: Valsad, Chittoor, Paschim Bardhaman, Agra, Guntur, Villupuram, Saharsa.

Seasonal Migration Patterns

• TRAI roaming data indicates high migration movement in April-June and secondary highs in November-December.
• Post-pandemic migration levels are significantly lower, with May 2023 levels 6.67% lower than those in May 2012.

Challenges in Migration Data Tracking

Despite other reports like those from the Ministry of Statistics & Programme Implementation and the Ministry of Housing and Urban Poverty Alleviation, tracking migration trends regularly remains challenging.

RBI's Committee on Responsible AI in the Financial Sector

The Reserve Bank of India (RBI) has established an eight-member committee to develop a framework for the responsible and ethical use of Artificial Intelligence (AI) in the financial sector, termed as FREE-AI.

Committee Leadership and Members

• The committee is led by Pushpak Bhattacharyya, a professor at IIT Bombay's Department of Computer Science and Engineering.
• Other members include: 
  • Debjani Ghosh - Independent Director, Reserve Bank Innovation Hub
  • Balaraman Ravindran - Head, Wadhwani School of Data Science and AI, IIT Madras
  • Abhishek Singh - Additional Secretary, Ministry of Electronics and Information Technology
  • Rahul Matthan - Partner, Trilegal
  • Anjani Rathor - Group Head and Chief Digital Experience Officer, HDFC Bank
  • Sree Hari Nagaralu - Head of Security AI Research, Microsoft India (R&D)
  • Suvendu Pati - Chief General Manager, FinTech Department, RBI

Objectives and Terms of Reference

• To recommend a robust, comprehensive, and adaptable AI framework for the financial sector.
• To assess current AI adoption levels in financial services, both globally and in India.
• To review regulatory and supervisory approaches on AI, focusing on the financial sector worldwide.
• To identify potential AI-associated risks and recommend frameworks for: 
  • Risk evaluation
  • Risk mitigation
  • Risk monitoring
  • Compliance requirements for financial institutions, such as banks, NBFCs, fintechs, and PSOs.
• To suggest a framework for the responsible and ethical adoption of AI models/applications in the domestic financial sector, including governance aspects.

Timeline

The committee is expected to submit its report within six months from the date of its first meeting.

Economic Review for November 2024

The Finance Ministry's monthly economic review for November 2024 highlights several factors influencing India's economic trajectory.

Monetary Policy and Macroeconomic Challenges

• The combination of the RBI's monetary policy stance and macroprudential measures may have contributed to a slowdown in demand.
• Structural factors, along with hiring and compensation practices in the corporate sector, have impacted economic growth in the first half of the financial year.

Growth Outlook for 2024-25

• The second half of 2024-25 is expected to see improved growth due to: 
  1. Reduction in the cash reserve ratio.
  2. Lower inflation outlook.
  3. Healthy progress in rabi sowing.
  4. Expected rise in capital expenditure in sectors like cement, iron, steel, mining, and electricity.
• New uncertainties for 2025-26 are emerging due to global economic factors, including aggressive policies and uncertain global trade growth.

Monetary Policy Considerations

• Emerging market currencies are under pressure due to US policy rate considerations, impacting domestic monetary policy decisions.
• The increase in borrowing costs for advanced economies and weakening of emerging market currencies are key concerns.

GDP and Inflation

• India's GDP growth slowed to 5.4% in July-September, the lowest in nearly two years.
• The RBI reduced the cash reserve ratio from 4.5% to 4% to boost credit growth.
• Inflation is projected at 4.8% for FY25, with Q3 at 5.7% and Q4 at 4.5%.
• Food price pressures have eased due to fresh produce influx and healthy rabi sowing.

Sectoral Outlook and Demand

• Cement, iron, steel, mining, and electricity sectors are expected to benefit from increased government capital expenditure.
• Industrial activity is anticipated to gain momentum, supported by a strong services sector performance.
•  Demand trends indicate: 
  1. Rural demand remains strong with significant increases in two & three-wheeler and domestic tractor sales.
  2. Urban demand is recovering, evidenced by a 13.4% year-on-year growth in passenger vehicle sales and robust domestic air passenger traffic.