MAINS Current Affairs includes Poor Monsoon in India: Causes, Implications and Preparedness & From Start-ups to Scale-ups: Why India Needs Global Corporate Champions?

CLIMATOLOGY, DISASTER MANAGEMENT

1. Poor Monsoon in India: Causes, Implications and Preparedness

Context: IMD has forecast below-normal rainfall (around 43% below normal) due to delayed monsoon onset and emerging El Niño conditions.

• Weak monsoon has raised concerns over agriculture, water security, food inflation, and economic growth.

Key Reasons Behind the Weak Monsoon

1. Emerging El Niño Conditions

• El Niño developed over the equatorial Pacific Ocean.
• Its impact on the Indian monsoon generally appears after a lag of about one month.
• It weakens the Walker Circulation, reducing moisture transport towards India.
• Hence, El Niño contributed only partly to the June rainfall deficit.

2. Unfavourable Madden-Julian Oscillation (MJO)

• MJO is a moving belt of clouds, rainfall, and winds along the equator.
• During June, its active phase remained away from India.
• This suppressed cloud formation, convection, and rainfall over most parts of the country.
• Result: Weak monsoon activity.

3. Weak Monsoon Circulation

• Weak cross-equatorial winds from the Indian Ocean.
• Reduced moisture transport from the Arabian Sea and Bay of Bengal.
• Slow advancement of the southwest monsoon over northern and western India.

4. Absence of Low-Pressure Systems

• Monsoon rainfall largely depends on low-pressure areas and depressions over the Bay of Bengal.
• During June, these systems were either absent or very weak.
• Resulted in poor rainfall distribution across India.

5. Climate Change and Increased Variability

• Climate change has increased:
  • Irregular rainfall.
  • Long dry spells.
  • Extreme rainfall events.
  • Uneven regional rainfall.
• Even years with normal seasonal rainfall now witness localized droughts.

Implications of a Weak Monsoon Over India

• Agricultural Stress: Agriculture remains highly dependent on monsoon rainfall despite expansion of irrigation.
  • A weak monsoon may lead to reduced kharif sowing; lower crop yields, especially rice, pulses and oilseeds; and increased input costs for farmers due to dependence on irrigation.
• Threat to Food Security and Inflation: Lower agricultural output can push food prices upward; increase inflationary pressures; and affect nutritional security, particularly among vulnerable populations.
• Water Shortage:Poor rains reduce the groundwater level; fill the reservoirs; and decrease the availability of drinking water.
  • Past experience shows that dry years require water to be transported to drought-prone areas.
• Economic Impact on Rural Areas:Weak monsoon affects farm income; demand from rural sector; and job prospects in agriculture-based regions.
  • It would hamper the economic growth of the country.
• Hydropower Production:Low reservoir water level affects hydropower production; and availability of water for irrigation and consumption in cities.
• Environmental Impacts: Lack of rain increases the risk of forest fires; soil erosion; and pressure on wetlands and waterways.

India’s Preparedness

Improved Weather Forecasting

• IMD provides:
  • Extended-range forecasts.
  • District-level weather advisories.
• Helps farmers plan sowing and irrigation.

District Vulnerability Assessment

Around 315 districts identified as vulnerable:

• 111 High Priority: Irrigation coverage below 25%.
• 76 Medium Priority: Irrigation coverage 25–50%.
• 128 Low Priority: Better irrigation through dams and canals.

Contingency Crop Planning

Prepared by ICAR through district-specific plans:

• Drought-tolerant crop varieties.
• Short-duration seeds.
• Alternative cropping systems.
• Region-specific agricultural strategies.

Water Conservation

Through MGNREGS:

• Farm ponds.
• Check dams.
• Rainwater harvesting.
• Watershed development.

These improve groundwater recharge and local water security.

Expansion of Irrigation

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) promotes:

• Micro-irrigation.
• “Per Drop More Crop”.
• Command Area Development.
• Efficient water use.

Renewable Energy Expansion

• Growth of solar and wind energy reduces dependence on hydropower during drought years.

Crop Insurance

Pradhan Mantri Fasal Bima Yojana (PMFBY) provides:

• Insurance against drought.
• Compensation for weather-induced crop losses.
• Financial support to farmers.

Way Forward

• Promote climate-resilient agriculture using drought-resistant crop varieties.
• Expand micro-irrigation and improve water-use efficiency.
• Strengthen watershed management, groundwater recharge, and river basin planning.
• Improve weather forecasting and last-mile dissemination.
• Integrate climate adaptation into agriculture and rural development policies.
• Encourage community-led water conservation, rainwater harvesting, and sustainable farming.
• Increase investment in climate-resilient infrastructure and agricultural research.

Conclusion

A weak monsoon is no longer only a weather phenomenon but a major developmental challenge affecting agriculture, water security, food prices, energy, and economic growth. While India has improved forecasting, irrigation, crop insurance, and water conservation, long-term climate adaptation and sustainable resource management are essential to build resilience against increasing climate variability.

ECONOMY

2. From Start-ups to Scale-ups: Why India Needs Global Corporate Champions?

Context: Recently Indian companies like Reliance Industries Ltd. (RIL) and Amul achieved distinct milestones, but not enough to be globally dominant, innovation-driven, and embedded in the highest-margin segments of the global economy.

• Reliance Industries Ltd. (RIL) became the first Indian company to cross $10 billion in annual profits.
• Amul became India’s first FMCG company to achieve ₹1 lakh crore turnover.
• Despite these achievements, India still has few globally dominant, innovation-driven companies operating in high-value global markets.

India’s Start-up Ecosystem: Key Features

• 6+ lakh startups recognized under the Startup India initiative (DPIIT).
• India is the 3rd largest startup ecosystem globally after the USA and China.
• Over 100 unicorns (valuation above $1 billion).
• Major growth sectors:
  • FinTech
  • EdTech
  • E-commerce
  • SaaS
  • HealthTech
  • DeepTech
• India has successfully created startups but relatively few globally leading corporations.

Global Comparison: India vs. Other Economies

• While India has fallen behind in making dominant global companies, it has excelled in generating many start-ups.
• Unlike the United States and China, Indian firms are dependent on the domestic market. There is low capture of global value through brands, patents, and IP.

Issues with Indian Start-ups

• Problem of Plenty:India has lots of start-ups. But only a few make it to the list of globally competitive firms. There is an excess in terms of number but not scale.
• Orientation towards Domestic Market:There is little market share and pricing power internationally since most firms focus on India’s huge consumer base.
• Absence of firms in high-margin areas:India has very few players in frontier technologies like semiconductors, Artificial Intelligence, manufacturing, and biotech.
  • Even today, global profits keep accruing to firms located elsewhere.
• Low R&D spending:India spends less than 1 percent of its GDP on R&D, much less than other leading economies, hindering innovation.
• Lack of Patient Capital: Deep-tech and research-based ventures require long-term capital. Venture capital in India is more focused on quick returns than on innovations.
• Regulatory and structural issues:The compliance framework’s complexity, factor market fragmentation, inflexibilities in land and labour, and regulatory uncertainty across states add to the costs of scaling businesses.
• Lack of integration into Global Value Chains:While India takes part in Global Value Chains, it is mainly by exporting services and assembling. India does not own the technology, design, and brands.
• Social and policy perception of profits:The Economic Survey of 2017-18 noted India’s movement from “crony socialism to stigmatised capitalism”. It implies that making profits is stigmatised in India.
  • Such perception could be detrimental to investment sentiments and reforms.

Why India Needs Scale-ups, Not Just Start-ups

1. Higher Productivity

• Large firms achieve economies of scale by spreading fixed costs of R&D, technology, compliance, and infrastructure over higher production.
• This lowers per-unit production costs, improves efficiency, and enhances global competitiveness.

2. Greater Innovation Capacity

• Breakthrough innovations require:
  • Long-term (patient) capital
  • High R&D investment
  • Skilled talent
  • Ability to absorb risks
• Large firms are better equipped to develop frontier technologies such as AI, semiconductors, biotechnology, and advanced manufacturing.

3. Stronger Global Competitiveness

• Scale-ups build:
  • Global brands
  • Intellectual Property (IP)
  • Patents
  • International supply chains
  • Pricing power
• This enables India to capture a larger share of global value and compete with multinational corporations.

4. Large-Scale Employment Generation

• High-growth firms generate:
  • Direct employment
  • Indirect jobs through MSMEs, suppliers, logistics, and service industries.
• They strengthen the overall industrial ecosystem and create sustainable employment.

5. Greater Fiscal Contribution

• Profitable companies contribute significantly through:
  • Corporate taxes
  • GST
  • Export earnings
• Higher government revenues enable greater spending on infrastructure, welfare, education, and healthcare.

6. Strategic & Technological Sovereignty

• Strong domestic firms reduce dependence on foreign companies in strategic sectors such as:
  • Semiconductors
  • Artificial Intelligence
  • Defence manufacturing
  • Green energy
  • Advanced electronics
• This enhances India’s economic resilience and national security.

Related Government Initiatives

• Startup India (2016): Tax incentives, self-certification, Fund of Funds.
• Digital India: Strengthened digital infrastructure and market access.
• Production Linked Incentive (PLI) Scheme: Encourages domestic manufacturing.
• Atal Innovation Mission (AIM): Promotes innovation and entrepreneurship.
• National Deep Tech Startup Policy (under consideration): Focus on frontier technologies.

Way Forward: Developing Global Giants of India

• Increased R&D Spending:Increase public and private R&D spending to at least 2 percent of GDP.
• Deep-tech Eco-system: Give long-term finance to AI, semiconductor, biotech, and advanced manufacturing ventures.
• Strong Intellectual Property System:Promote patent creation, monetisation, and technology transfer.
• Make it Easy to Scale Up: Reduce regulations and standardise policies of different states to reduce compliance costs.
• Deep Integration into Global Value Chains:From assembly to design, branding and technology control.
• Create a Positive Perception About Enterprises:The profits made due to competition and innovation should be seen as an essential requirement for growth, jobs, and national development.
• Help in Global Expansion:Diplomacy, trade and financial policies of the government should enable Indian firms to gain global market share.

Conclusion

• India has succeeded in developing a dynamic start-up ecosystem. The next phase of development, however, requires globally competitive firms with profit pools, strong brands, and technological supremacy.
• India needs to go beyond the success of unicorns and develop corporate champions which are comparable to Samsung, Apple, or NVIDIA to achieve the goal of Viksit Bharat 2047.

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