SDG INVESTOR MAP REPORT for INDIA 2020 | UPSC

SDG INVESTOR MAP REPORT  for INDIA 2020 | UPSC

SDG INVESTOR MAP REPORT for INDIA 2020 | UPSC

      HEADLINES:

UNDP and Invest India launch the SDG Investor Map for India

      WHY IN NEWS:

18 Investment Opportunities Areas identified across 6 critical SDG-enabling sectors that can balance commercial returns with catalytic development impact

MINISTRY? :- Ministry of Commerce & Industry
SYLLABUS COVERED: GS 3: Report

      LEARNING: 

For PRELIMS it is important to go through the present SDG Trends and the relevant Maps mentioned in the report .

For MAINS go through the bottlenecks of each sector . These can be subheadings of your Mains answers. Let us dive in !

      ISSUE: 

“ Invest India has partnered with UNDP India to develop the first-ever ‘SDG Investor Map for India’.

SDG INVESTOR MAP REPORT FOR INDIA 2020

REPORT TITLE

  • SDG Investor Map for India 2020

PUBLISHED BY

The report is published by United Nations Development Programme (UNDP) and Invest India

  • The report is developed through comprehensive process of consulting firms, Development Finance Institutions, Impact Investors.etc
  • Also, Independent Think Tanks and Government Organizations have contributed enormously.

OVERVIEW

  • India occupies a key role in determining the success of the SDGs, globally.

The Map will help public and private sector stake-holders direct capital towards Investment Opportunity Areas (IOAs).

  • White Spaces (Areas of Potential) that can contribute to the nationally determined sustainable development needs of the country.

SDG INVESTOR MAP REPORT  for INDIA 2020 | UPSC IASbhai

  • The Map has identified 18 IOAs and 8 White Spaces across 6 Priority Sectors .

PRIORITY SECTOR
Education, Healthcare, Agriculture and Allied Services, Financial Services, Renewable Energy and Alternatives, and Sustainable Environment.

HIGHLIGHTS

  • Of the 18 IOAs identified, 10 are already mature investable areas that have seen robust Private Equity and Venture Capital activity.
  • The remaining eight IOAs are emerging opportunities, which have seen traction from early-stage investors.

The map has also identified eight White Spaces, which have the potential to grow into IOAs within a 5-6-year horizon. 

  • However, these require further policy support and private sector participation to mature into commercially attractive IOAs.
  • Nearly 50% of the shortlisted IOAs have historical investments.
  • 84% of the IOAs have investment timeframes ranging from the short term (less than 5 years) to the medium-term (between 5- 15 years).

The observations from the map present a strong case for investing in SDG enabling sectors and IOAs.

  • Bridging the gap between high-level development targets and the need for commercially viable returns.
  • Moreover, investing in the SDGs is crucial to ‘Building Back Better’ from COVID-19 and enhancing India’s resilience to future threats.
  • Investing in opportunities that enhance employment and employability, push forward the inclusion of underserved communities.
  • Leverage technology will be of essence to India as it grapples with the challenges of a post-COVID economy.

REPORT ANALYSIS

  • Global cooperation and collaboration lie at the centre of achieving the SDGs.
  • Investors, enterprises, civil society organizations, international networks and national governments must have collaboratively approach.

Contribution to the solutions that can help achieve the 17 SDGs and their 169 underlying targets by 2030. 

  • As we move into the ‘Decade of Action‘, ensuring financing of sectors that are relevant to the SDGs, has never been more urgent.
  • UNCTAD estimated that the SDGs would globally require investments of USD 5 trillion to USD 7 trillion annually-World Investment Report
  • Home to almost a fifth of the world’s population , India’s SDG commitments is key to the success of the 2030 global agenda.

In addition to the SDGs, the Investor Map for India also took cognizance of the COVID-19 pandemic .
 

  • To this end, the analytical framework used for the development of validated first-order and second order effects of the pandemic.

FIRST ORDER EFFECTS

This report identified and validated first-order effects of the pandemic:

  • Surge in the demand for healthcare
  • Consumer demand suppression
  • Value chain disruptions across sectors.

SECOND-ORDER EFFECTS

Second-order effects and more long-term needs such as

  • Productivity (industrialization and employment generation)
  • Inclusion (vulnerable and marginalized communities,
  • Relief (businesses most affected by the pandemic),
  • Technology Adoption and Digitization 
  • Environmental Sustainability and Infrastructure Development.

PRIORITY SECTORS AND REGIONS

  • The report identified six priority sectors for inclusion in the India Investor Map.

EXAMPLE
Education, Healthcare, Agriculture and Allied Services, Financial Services, Renewable Energy and Alternatives, and Sustainable Environment.

EDUCATION

QUALITY OF EDUCATION IN INDIA | SOURCES : UNDP.ORG

  • India will be home to the largest workforce in the world by 2027.
  • India has the largest school-going population in the world of over 250 million students.

Education and skills development of India’s large and growing human capital is imperative for the country’s socio-economic growth.

  • The sector has seen significant investment momentum from the private sector ; with FDI worth USD 3.24 billion between April-March 2020.
  • EdTechs are making it an attractive investment area.

SDG INVESTOR MAP REPORT  for INDIA 2020 | UPSC

SOURCES : UNDP.ORG

BOTTLENECKS

Few Bottlenecks for private sector investments in the Education sector

  • Regulatory hurdles
  • High capital expenditure (CAPEX) 
  • Lack of investable assets 
  • Lack of trained workforce 
  • Absence of unified assessment frameworks across education levels

GROSS ENROLLMENT UPSC

SOURCES : UNESCO | Gross Enrollment ratio

HEALTH

SECTORAL DEVELOPMENT NEEDS

  • RESOURCE SCARCITY : A lack of both human and capital resources constrains healthcare delivery in India. In 2018, India had only 0.9 physicians for 1,000 people.
  • SPENDING TOWARDS THE HEALTHCARE SECTOR : Health insurance coverage; 28.7 percent of households with at least one member covered in 2015-16.
  • COST OF HEALTHCARE : High medical expenses has been found to push nearly 60 million Indians into poverty each year.

SDG INVESTOR MAP REPORT  for INDIA 2020 IAS

SOURCES : UNDP.ORG

BOTTLENECKS

Bottlenecks for private sector investments in the Healthcare sector

  • High capex and cost of operations for healthcare delivery
  • Lack of affordable domestic medical devices
  • Cost, availability and quality of drugs
  • Low purchasing power and high Out-Of-Pocket expenditure
  • Low availability of healthcare professionals outside urban centres.

PHARMA HUBS IN INDIA

FOOD AND BEVERAGES

PRIORITY  SECTORS

  • Agriculture technology (including E-markets and technological interventions in the agriculture space)
  • Research and Development (R&D) in agriculture and agri-biotechnology
  • Rural markets, logistics and supply chain to be strengthened
  • Food processing
  • Poultry, Fish and Dairy farming
  • Agri-financing

SDG INVESTOR MAP REPORT  for INDIA 2020

SOURCES : UNDP.ORG

BOTTLENECKS

  • Fragmented landholding
  • Supply channel bottlenecks
  • Reliance on monsoons
  • Dependence on traditional methods of agriculture
  • Access to finance
  • Agriculture exports

RENEWABLE RESOURCES & ALTERNATIVE ENERGY

As per NITI Aayog’s report ‘Zero-Emission Vehicles (ZEVs): Towards a Policy Framework’, import oil is needed to cover over 80 percent 207 of India’s transport fuel.

  • Scalable solar energy projects
  • EV manufacturing and infrastructure
  • Harnessing wind resources to meet energy needs
  • Harnessing hydropower to meet energy needs
  • Converting waste to energy (such as biofuels)
  • Upgrading industrial and agricultural technology to reduce emissions
  •  Forestry Management and processing of forest produce

SDG INVESTOR MAP REPORT  for INDIA 2020 | UPSC IAS

SOURCES : UNDP.ORG

BOTTLENECKS

  • Reduction in bids and cost overruns
  • Auction process
  • Low tariff rates
  • The high cost of raw materials
  • Mounting dues from distributors
  • Grid bottlenecks
  • Retiring existing coal plants
  • Lack of smart grids
  • Lack of storage

FINANCIALS

SECTORAL DEVELOPMENT NEEDS

  • Financial literacy
  • Adoption of formal banking services (SDG 8)
  • Access to credit (SDG 9)
  • Digital payments infrastructure for the underserved, rural population
  • Access points for banking transactions
  • Penetration of products to build socioeconomic resilience
  • Unequal access to finance by women entrepreneurs

FINANCE

SDG INVESTOR MAP REPORT for INDIA 2020 | UPSC

BOTTLENECKS

  • Growth related challenges for MSMEs
  • Challenges in credit assessment of MSMEs
  • Challenges in equity investments

Challenges faced by lending companies due to regional and MSME cluster related peculiarities 
 

  • Quantum of MSME loans classified as NPA is high
  • High costs of underwriting for last-mile population
  • Lack of viable models in the social protection space
  • Regulatory hurdles for White Label ATM Operators (WLAOs)
  • Low penetration of internet services in rural areas.

FINTECH IN INDIA | SOURCES : UNDP.ORG

ENVIRONMENT

Sectoral development needs:

  • Access to drinking water
  • Deteriorating groundwater resources:
  • Need for improved agriculture practices
  • Effective implementation and maintenance of projects, including participatory irrigation
  • Improper management of waste.

      IASbhai WINDUP: 

  • The Investor Map for India has identified 18 IOAs and 8 white spaces across 6 sectors and 13 subsectors.
  • To standardize the mapping process and to facilitate comparisons at a global level with peer UN Country Offices

Sustainable Industrial Classification System (SICS) to help categorize investor and enterprise activity using a sustainability lens.

  • The Education sector is not adequately represented in the SASB SICS and has been added separately.
  • UNDP’s SDG Impact’s three pillars of work – Impact Management, Impact Intelligence and Impact Facilitation.
  • These parameters are closely tied to the market intelligence produced through the Investor Map.
SUGGESTED READING : DOWNLOAD REPORT
     SOURCES:   PIB    | SDG INVESTOR MAP REPORT for INDIA 2020 | UPSC

 

DISCOVER MORE : REPORTS

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