Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Need for multilateralism
Multilateralism faces several challenges at the time when it is needed the most. The article highlights the need for more of it in the face of global challenges.
Lack of international collaboration to deal with Covid
- As COVID-19 recognises no boundaries, one would have expected that countries with technological and financial capabilities, would agree to pool their resources together to work on an effective and affordable anti-virus vaccine.
- Instead, there are several parallel national efforts underway even as the World Health Organization (WHO) has put together a Covax alliance for the same purpose.
- Active collaboration would have enhanced our collective ability to overcome what has become a public health-cum-economic crisis.
- But we live in an era when nationalist urges, fuelled by a political opportunism, diminish the appeal of international cooperation.
- The post-pandemic world will have the awful dilemma of global integration without solidarity.
Trends in the global order that suggests the need for multilateralims
1) Global food crisis
- The World Food Program has been awarded this year’s Noble Peace Prize.
- The award is sending a message to the world — that we need multilateralism as an expression of international solidarity.
- According to the WFP, 132 million more people could become malnourished as a consequence of the pandemic.
- To the 690 million people who go to bed each night on an empty stomach, perhaps another 100 million or more will be added.
- The Nobel Prize to the WFP will hopefully nudge our collective conscience to come together and relieve this looming humanitarian crisis.
2) Despite issues, U.N. is still important
- The United Nations is at the centre of multilateral institutions and processes and kept alive the notion of international solidarity and cooperation.
- But it suffers from several disabilities due to the fault of its most powerful member countries.
- They have deprived the UN of resources.
- They have resisted efforts to institute long-overdue reforms.
- Its structure no longer reflects the changes in power equations that have taken place and country such as India continues to be denied permanent membership of the Security Council.
- And yet, the UN is now an essential part of the fabric of international relations for two reasons:
- 1) The salience of global issues has expanded.
- 2) The need for multilateral approaches in finding solutions has greatly increased.
3) Multilateral institutions have become platform for contestation
- In the network of multilateral institutions, several belong to the UN system, others are inter-governmental, still others may be non-governmental of a hybrid character.
- This network performs two important tasks:
- 1) Enable governance in areas which require coordination among nation-states.
- 2) Set norms to regulate the behaviour of states so as to avoid conflict and to ensure both equitable burden-sharing and, equally, a fair distribution of benefits.
- While there are multilateral institutions they have become platforms for contestations among their member states.
- There is recognition of the need to cooperate but this is seen as a compulsion rather than desirable.
4) Globalisation driven by technology will remain here
- Globalisation may have stalled, but as we become increasingly digitised, there will be more, not less, globalisation.
- The pandemic has triggered galloping globalisation in the digital economy.
- Globalisation is driven by technology and as long as the technology remains the key driver of economic growth, there is no escape from globalisation.
- In the contemporary world, the line separating the domestic from the external has become increasingly blurred.
- In tackling domestic challenges deeper external engagement is often indispensable. This is certainly true of climate change.
- The pandemic originated in a third country but soon raged across national borders.
- If there had been a robust and truly global early warning system, perhaps it could have been contained.
5) Interconnectedness of challenges
- We must also take into account the inter-connectedness among various challenges, for example, food, energy and water security are inter-linked with strong feedback loops.
- Enhancing food security may lead to diminished water and energy security.
- It may also have collateral impact on health security.
- It is in recognition of these inter-connections that the international community agreed on a set of Sustainable Development Goals (SDGs).
- The SDGs are cross-domain but also cross-national in character, and hence demand greater multilateral cooperation in order to succeed.
6) Need for more democratic world
- The lack of cooperation from even a single state may frustrate success in tackling a global challenge.
- A fresh pandemic may erupt in any remote corner of the world and spread throughout the globe.
- Prevention cannot be achieved through coercion, only through cooperation. It is only multilateralism that makes this possible.
Conclusion
It is a paradox that precisely at a time when the salience of cross-national and global challenges has significantly increased, nation-states are less willing to cooperate and collaborate in tackling them. So, there is a need for more of multilateralism to deal with the issues of global level.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: GDP, GNP, GVA etc.
Mains level: India's GDP related issues
In IMF’s latest Economic Outlook, Bangladesh has overtaken India in GDP per capita. This has caught everyone’s attention.
Do you know?
- In the 2019 edition of Transparency International’s rankings, Bangladesh ranks a low 146 out of 198 countries (India is at 80th rank; a lower rank is worse off).
- In the latest gender parity rankings, out of 154 countries mapped for it, Bangladesh is in the top 50 while India languishes at 112.
Bangladesh surpasses India
- Typically, countries are compared on the basis of GDP growth rate, or on absolute GDP.
- For the most part since Independence, on both these counts, India’s economy has been better than Bangladesh’s.
- This can be seen from Charts 1 and 2 that map GDP growth rates and absolute GDP — India’s economy has mostly been over 10 times the size of Bangladesh, and grown faster every year.
- However, per capita income also involves another variable — the overall population — and is arrived at by dividing the total GDP by the total population.
What made India lag behind?
There are three reasons why India’s per capita income has fallen below Bangladesh this year:
- The first thing to note is that Bangladesh’s economy has been clocking rapid GDP growth rates since 2004.
- Secondly, over the same 15-year period, India’s population grew faster (around 21%) than Bangladesh’s population (just under 18%).
- Lastly, the most immediate factor was the relative impact of Covid-19 on the two economies in 2020. While India’s GDP is set to reduce by 10%, Bangladesh’s is expected to grow by almost 4%.
How has Bangladesh managed to grow so fast and so robustly?
- Freshly start: In the initial years of its independence with Pakistan, Bangladesh struggled to grow fast. However, moving away from Pakistan also gave the country a chance to start afresh on its economic and political identity.
- Diverse labour participation: As such, its labour laws were not as stringent and its economy increasingly involved women in its labour force. This can be seen in higher female participation in the labour force.
- Textile boom: A key driver of growth was the garment industry where women workers gave Bangladesh the edge to corner the global export markets from which China retreated.
- Less dependence on Agriculture: It also helps that the structure of Bangladesh’s economy is such that its GDP is led by the industrial sector, followed by the services sector. Both of these sectors create a lot of jobs and are more remunerative than agriculture.
- Better social capital: Bangladesh improved a lot on several social and political metrics such as health, sanitation, financial inclusion, and women’s political representation.
Retaining the lead
- The IMF’s projections show that India is likely to grow faster next year and in all likelihood again surge ahead.
- But, given Bangladesh’s lower population growth and faster economic growth, India and Bangladesh are likely to be neck and neck for the foreseeable future in terms of per capita income.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Climate change induced disasters
The UN Office for Disaster Risk Reduction (UNDRR) recently published its report titled “The Human Cost of Disasters”.
The report holds much significance for prelims as well as mains. Just for the sake of information, we must be aware of the report.
Highlights of the report
- 7,348 major disaster events had occurred between 2000 and 2019, claiming 1.23 lives, affecting 4.2 billion people and costing the global economy some $2.97 trillion.
- Of this, China (577 events) and the US (467 events) reported the highest number of disaster events followed by India (321 events).
- Climate change is to be blamed for the doubling of natural disasters in the past 20 years says the report.
- There had also been an increase in geophysical events like earthquakes and tsunamis that are not related to climate but are particularly deadly.
Back2Basics: UN Office for Disaster Risk Reduction
- The UNDRR was established in 1999 as a dedicated secretariat to facilitate the implementation of the International Strategy for Disaster Reduction (ISDR).
- It is headquartered in Geneva, Switzerland.
- It is mandated to serve as the focal point in the UN system for the coordination of disaster reduction and to ensure synergies among the disaster reduction activities.
- It has a vision to substantially reduce disaster risk and losses for a sustainable future with the mandate to act as the custodian of the Sendai Framework to which India is a signatory.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NGTA, Forex Reserve
Mains level: Not Much
In a bid to improve its functioning, the RBI has decided to move to the Next Generation Treasury Application (NGTA) for managing the country’s foreign exchange and gold reserves.
Aspirants must make a note here:
1.Authority managing FOREX in India
2.Components of FOREX
3.IMF’s SDRs
4.Emergency use of FOREX
What is NGTA?
- The NGTA, according to the RBI, would be a web-based application providing scalability, manoeuvrability and flexibility to introduce new products and securities, besides supporting multi-currency transactions and settlements.
- It would be supporting various transactions in asset classes like Fixed Income (FI), Forex (FX), Money Market (MM) and Gold.
- It would be used for managing the foreign exchange reserves in a more efficient way, mitigate risk, achieve operational efficiencies, dealing in various asset classes and reporting.
Objectives of NGTA
The objectives of the proposed system include:
- dealing in various asset classes (like Fixed Income Securities, Forex, Money Market, Gold);
- portfolio management; workflow management; reserve management;
- integration with various third-party and in-house systems; and dashboards, reports, widgets.
Features of NGTA
- The NGTA shall automatically fetch all the relevant details of a security/contract from a trading platform.
- It shall support all internationally accepted conventions pertaining today count, interest computation, holiday logic, shut period-dividend, ex-dividend, cash flows, and odd coupon.
- With respect to transactions in gold, the NGTA shall support purchase, sale, deposit (including rollover and premature withdrawal).
- On maturity of a gold deposit, there can be exact, under or over delivery.
Back2Basics: Forex Reserves
- Reserve Bank of India Act and the Foreign Exchange Management Act, 1999 set the legal provisions for governing the foreign exchange reserves.
- RBI accumulates foreign currency reserves by purchasing from authorized dealers in open market operations.
- The Forex reserves of India consist of below four categories:
- Foreign Currency Assets
- Gold
- Special Drawing Rights (SDRs)
- Reserve Tranche Position
- The IMF says official Forex reserves are held in support of a range of objectives like supporting and maintaining confidence in the policies for monetary and exchange rate management including the capacity to intervene in support of the national or union currency.
- It will also limit external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing is curtailed.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Taiwan strait
Mains level: Not Much
A U.S. warship sailed through the Taiwan Strait in what the American military described as a “routine” passage on but enraging China, which claims sovereignty over the island and surrounding seas.
Try this PYQ:
Q.Which one of the following can one come across if one travels through the Strait of Malacca?
(a) Bali
(b) Brunei
(c) Java
(d) Singapore
Taiwan Strait
- The Taiwan Strait, also known as the Formosa Strait, is a 180 km wide strait separating Taiwan and mainland China.
- The strait is currently part of the South China Sea and connects to the East China Sea to the north. The narrowest part is 130 km wide.
- The entire strait is on Asia’s continental shelf.
- Historically both the People’s Republic of China (PRC) and Taiwan espoused a One-China Policy that considered the strait part of the exclusive economic zone of a single “China”.
Tap to read more about One China Policy at:
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: KAPILA program
Mains level: IPR protection measures
Union Education Ministry has launched ‘KAPILA’ Kalam Program for IP Literacy and Awareness Education campaign to bring awareness towards the patenting of inventions.
Remember one thing, ‘KAPILA’ Program is related to IP awareness. It sounds much like an animal husbandry related initiative.
‘KAPILA’ Program
- KAPILA is an acronym for Kalam Program for IP (Intellectual Property) Literacy and Awareness.
- Under this campaign, students pursuing education in higher educational institutions will get information about the correct system of the application process for patenting their invention and they will be aware of their rights.
- The program will facilitate the colleges and institutions to encourage more and more students to file patents.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PMP and PLI Scheme
Mains level: Paper 3- Issues with Phased Manufacturing Policy
The Production Linked Incentive Scheme, though ambitious in its goal suffers from several fundamental issues. The article discuses such issues.
Background of the Phased Manufacturing Policy
- The Phased Manufacturing Programme (PMP) incentivised the manufacture of low value accessories initially, and then moved on to the manufacture of higher value components.
- This was done by increasing the basic customs duty on the imports of these accessories or components.
- The PMP was implemented with an aim to improve value addition in the country.
- Recently, 16 firms in the mobile manufacturing sector were approved for the Production Linked Incentive (PLI) scheme to transform India into a major mobile manufacturing hub.
- The PLI comes on the back of a phased manufacturing programme (PMP) that began in 2016-17.
Issues to consider
1) More imports and less value addition in India
- Firms such as Apple, Xiaomi, Oppo, and OnePlus have invested in India, but mostly through their contract manufacturers.
- As a result, production increased from $13.4 billion in 2016-17 to $31.7 billion in 2019-20.
- But factory-level production data from the Annual Survey of Industries (ASI) shows that more than 85% of the inputs were imported.
- UN data for India, China, Vietnam, Korea and Singapore (2017-2019), show that except for India, all countries exported more mobile phone parts than imports.
- More export than import by these countries indicate the presence of facilities that add value to these parts before exporting them.
- India, on the other hand, imported more than it exported.
- Therefore, while the PMP policy increased the value of domestic production, improvement in local value addition remains low.
- The new PLI policy offers an incentive subject to thresholds of incremental investment and sales of manufactured goods.
- Thus, focus remains on increasing value of domestic production, and not local value addition.
2) Shift from China unlikely
- India produced around 29 crore units of mobile phones for the year 2018-19; 94% of these were sold in the domestic market.
- This implies that much of the incremental production and sales under the PLI policy will have to be for the export market.
- Recently, a study by Ernst & Young showed that if the cost of production of a mobile phone is say 100 (without subsidies), then the effective cost (with subsidies and other benefits) of manufacturing mobile phone in China is 79.55, Vietnam, 89.05, and India (including PLI), 92.51.
- So, it may be premature to expect a major chunk of mobile manufacturing to shift from China to India.
3) PLI doesn’t strengthen the current export competitiveness
- India’s mobile phone exports grew from $1.6 billion in 2018-19 to $3.8 billion in 2019-20, but per unit value declined from $91.1 to $87, respectively.
- This shows that our export competitiveness seems to be in mobiles with lower selling price.
- However, for foreign firms chosen under the PLI policy, the incentive will be at and above ₹15,000 ($204.65).
- So, it is clear that the PLI policy does not strengthen our current export competitiveness in mobile phones.
4) Absence of domestic firms
- Domestic firms have been nearly wiped out from the Indian market.
- So, their ability to take advantage of the PLI policy and grab a sizeable domestic market share seems difficult.
- Domestic firms may have the route of exporting cheaper mobile phones to other low-income countries.
- However, their performance in the last couple of years has not been promising.
5) Importance of supply chain colocation
- The six component firms that have been given approval under the ‘specified electronic components segment’do not complete the mobile manufacturing ecosystem.
- For example, when Samsung set up shop in Vietnam, it relied heavily on its Korean suppliers which co-located with it to produce intermediate inputs, so much so that 63 among Samsung’s 67 suppliers then were foreign.
- Though Samsung is invested hugely in India, it has not colocated its supply chain in the country.
- So, the foreign firms chosen under the PLI policy should be encouraged to colocate their supply ecosystems in the country.
6) Complaint at WTO against PMP
- In September 2019, Chinese Taipei contested the raise in tariffs under the PMP.
- If the PMP is found to be World Trade Organization (WTO) non-compliant, then we may be flooded with imports of mobile phones.
- This might make the local assembly of mobile phones unattractive.
- This will affect the operations of the mobile investments done under the PMP.
Conclusion
The PMP policy, since 2016-17 has barely been helpful in raising domestic value addition in the industry even though value of production expanded considerably.
B2BASICS
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Debt-GDP ratio
Mains level: Not Much
India’s public debt ratio, which remarkably remained stable at about 70% of the GDP since 1991, is projected to jump by 17 percentage points to almost 90% a/c to IMF.
Try this PYQ:
Q.Consider the following statements:
- Most of India’s external debt is owed by governmental entities.
- All of India’s external debt is denominated in US dollars.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Why such a spike?
- The increase in public spending, in response to COVID-19, and the fall in tax revenue and economic activity, will make public debt jump by 17 percentage points to almost 90% of GDP.
What is Debt-to-GDP Ratio?
- The Debt-to-GDP ratio is the ratio between a country’s government debt and its gross domestic product (GDP).
- It measures the financial leverage of an economy.
- A country able to continue paying interest on its debt-without refinancing, and without hampering economic growth, is generally considered to be stable.
- A country with a high debt-to-GDP ratio typically has trouble paying off external debts (also called “public debts”), which are any balances owed to outside lenders.
- In such scenarios, creditors are apt to seek higher interest rates when lending. Extravagantly high debt-to-GDP ratios may deter creditors from lending money altogether.
- A low debt-to-GDP ratio indicates an economy that produces and sells goods and services sufficient to pay back debts without incurring further debt.
- Geopolitical and economic considerations – including interest rates, war, recessions, and other variables – influence the borrowing practices of a nation and the choice to incur further debt.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: FAO
Mains level: India and FAO
On the occasion of 75th Anniversary of Food and Agriculture Organization (FAO) on 16th October 2020, PM has released a commemorative coin of Rs 75.
Try this MCQ:
Q.The FAO accords the status of ‘Globally Important Agricultural Heritage Systems (GIAHS)’ to traditional agricultural systems. What is the overall goal of this initiative?
- To provide modern technology, training in modern farming methods and financial support to local communities of identified GIAHS so as to greatly enhance their agricultural productivity.
- To identify and safeguard eco-friendly traditional farm practices and their associated landscapes, agricultural biodiversity and knowledge systems of the local communities.
- To provide Geographical Indication status to all the varieties of agricultural produce in such identified GIAHS Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
About FAO
- It is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve nutrition and food security.
- It was founded in October 1945 and is headquartered in Rome.
- It maintains regional and field offices around the world, operating in over 130 countries.
- It also conducts research, provides technical assistance to projects, operates educational and training programs, and collects data on agricultural output, production, and development.
- Composed of 197 member states, the FAO is governed by a biennial conference representing each member country and the European Union, which elects a 49-member executive council.
- The Director-General serves as the chief administrative officer.
India and FAO
- India has had a historic association with FAO.
- Indian Civil Service Officer Dr Binay Ranjan Sen was the Director-General of FAO during 1956-1967.
- The World Food Programme, which has won the Nobel Peace Prize 2020, was established during his time.
- India’s proposals for the International Year of Pulses in 2016 and the International Year of Millets 2023 have also been endorsed by FAO.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: STARS Project
Mains level: Not Much
The Union Cabinet has approved the sum of Rs. 5718 crore for the World Bank aided project STARS.
Try this MCQ:
Q. The STARS Project recently seen in news is an initiative of:
World Bank/ Bill and Melinda Gates Foundation / UNECOSOC/ UNICEF
STARS Project
- ‘STARS’ is an acronym for Strengthening Teaching-Learning and Results for States (STARS).
- The STARS project will be implemented through the Samagra Shiksha Abhiyan, the flagship central scheme.
- The six states include- Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.
- It will help improve learning assessment systems, strengthen classroom instruction and remediation, facilitate school-to-work transition, and strengthen governance and decentralized management,
- Some 250 million students (between the age of 6 and 17) in 1.5 million schools and over 10 million teachers will benefit from the STARS program.
- STARS will support India’s renewed focus on addressing the ‘learning outcome’ challenge and help students better prepare for the jobs of the future – through a series of reform initiatives.
Major components of the STARS
1) At the national level, the project envisages the following interventions which will benefit all states and UTs:
- To strengthen MOE’s national data systems to capture robust and authentic data on retention, transition and completion rates of students.
- To support MOE in improving states PGI scores by incentivizing states governance reform agenda through SIG (State Incentive Grants).
- To support the strengthening of learning assessment systems.
- To support MOE’s efforts to establish a National Assessment Center (PARAKH).
2) At the State level, the project envisages:
- Strengthening Early Childhood Education and Foundational Learning
- Improving Learning Assessment Systems
- Strengthening classroom instruction and remediation through teacher development and school leadership
- Governance and Decentralized Management for Improved Service Delivery.
- Strengthening Vocational education in schools through mainstreaming, career guidance and counselling, internships and coverage of out of school children
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Thalassemia
Mains level: Not Much
Union Health Ministry has launched the second phase of “Thalassemia Bal Sewa Yojna” for underprivileged Thalassemic patients.
Thalassemia Bal Sewa Yojna
- This scheme was launched in 2017 under the Coal India CSR funded Hematopoietic Stem Cell Transplantation (HSCT) program.
- It aims to provide a one-time cure opportunity for Haemoglobinopathies like Thalassaemia and Sickle Cell Disease for patients who have a matched family donor.
- The initiative was targeted to provide financial assistance to a total of 200 patients by providing a package cost not exceeding Rs. 10 lakhs per HSCT.
What is Thalassemia?
- Thalassemia is an inherited blood disorder characterized by less oxygen-carrying protein (haemoglobin) and fewer red blood cells in the body than normal.
- When there isn’t enough haemoglobin, the body’s red blood cells don’t function properly and they last shorter periods of time, so there are fewer healthy red blood cells travelling in the bloodstream.
- Symptoms include fatigue, weakness, paleness and slow growth.
- Mild forms may not need treatment. Severe forms may require blood transfusions or a donor stem-cell transplant.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Inflation targeting mechanism
Mains level: Paper 3- Issues with the inflation targeting mechanism of the RBI
The article analyses the recent changes signalled by the RBI in its policymaking.
Changes in the economic policymaking
- Recently the U.S. Fed declared that the Fed will not let inflation stand in the way of maximising employment.
- The reason for this was that the Phillips Curve, the relationship between inflation and unemployment, may no longer hold in the U.S. economy.
- This is significant, given that the Anglo-American economics has been dominated by Phillips Curve.
Why there was need for change in inflation targeting
- Data show that the model that currently guides India’s inflation control strategy may be quite irrelevant.
- This is seen in the recent behaviour of inflation.
- We know that output contracted by more than 23% in the first quarter of this year.
- Despite this staggering decline the inflation rate did not change,
- This was contrary to experience that inflation reflects an ‘over heating’ economy, one growing too fast in relation to its potential.
- This view represents the RBI’s official understanding of inflation, and presumably forms the basis of its policy of inflation targeting.
- It was endorsed by the Government of India when it legislated the modern monetary policy framework to enable the RBI to pursue inflation targeting.
- If the Phillips Curve, which the RBI’s approach internalises, exists, inflation should have decreased as India’s economy contracted during the lockdown.
- The current inflation targeting mechanism had been imagined with developing economies in mind.
- Inflation targeting mechanism is based on the idea that food prices are an important determinant of inflation along with imported inflation.
- Accordingly, a macroeconomic contraction need not lower inflation.
Role of food prices in India
- A recent working paper of the RBI’s research department suggested that a more eclectic model than the one that underlies inflation targeting does a better job of forecasting inflation in India.
- This model accepts a role for food prices, a possibility that is missed when embracing economic models developed in the western hemisphere, where food prices have stopped trending upwards over half a century ago.
Conclusion
The RBI shifting away from its rigid inflation targeting policy is in tune with the time and signals that the central bank is finally alive to India’s economy.
Back2Basics: What is Philips Curve?
- The Phillips curve is an economic concept, stating that inflation and unemployment have a stable and inverse relationship.
- The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.
- However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Karman Line, New Sphephard
Mains level: Micro-gravity experimentation
New Shephard, a rocket system meant to take tourists to space successfully completed its seventh test launch.
Note the features of the Karman Line. It is a new terminolgy in our recent space vocab.
What is New Shephard?
- New Shephard has been named after astronaut Alan Shephard, the first American to go to space, and offers flights to space over 100 km above the Earth and accommodation for payloads.
- Essentially, it is a rocket system that has been designed to take astronauts and research payloads past the Karman line – the internationally recognised boundary of space.
- The idea is to provide easier and more cost-effective access to space meant for purposes such as academic research, corporate technology development and entrepreneurial ventures among others.
- It is built by Amazon founder Jeff Bezos’s Space Company called Blue Origin.
- In 2018, Blue Origin was one of the ten companies selected by NASA to conduct studies and advance technologies to collect process and use space-based resources for missions to the Moon and Mars.
How does it work?
- The rocket system consists of two parts, the cabin or capsule and the rocket or the booster.
- The cabin can accommodate experiments from small mini payloads up to 100 kg.
- The cabin is designed for six people and sits atop a 60-feet tall rocket and separates from it before crossing the Karman line, after which both vehicles fall back to the Earth.
- The system is a fully reusable, vertical takeoff and vertical landing space vehicle that accelerates for about 2.5 minutes before the engine cuts off.
- After separating from the booster, the capsule free falls in space, while the booster performs an autonomously controlled vertical landing back to Earth.
- The capsule, on the other hand, lands back with the help of parachutes.
Back2Basics: Karman line
- The Karman line is an attempt to define a boundary between Earth’s atmosphere and outer space.
- The line is named after Theodore von Kármán (1881–1963), a Hungarian American engineer and physicist, who was active primarily in aeronautics and astronautics.
- He was the first person to calculate the altitude at which the atmosphere becomes too thin to support aeronautical flight and arrived at 83.6 km (51.9 miles) himself.
Locating the line
- The Fédération Aéronautique Internationale (FAI) defines Karman Line as the altitude of 100 kilometres (62 miles; 330,000 feet) above Earth’s mean sea level.
- However, other organizations do not use this definition. There is no international law defining the edge of space, and therefore the limit of national airspace.
- For instance, the US Air Force and NASA define the limit to be 50 miles (80 km) above sea level.
- The line is approximately at the turbopause, above which atmospheric gases are not well-mixed.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Zojila Pass
Mains level: Road infrastructure in Himalayas
Union Transport Ministry has launched the first blasting for construction-related work at the Zojila tunnel that will provide all-year connectivity between Srinagar valley and Leh.
These days various Himalayan passes and tunnels are overwhelmingly seen in news. Open your Atlas and try to spot all of them for now and once before the exam.
Zojila Tunnel
- The Zojila is set to be Asia’s longest bi-directional tunnel.
- It will connect Srinagar, Dras, Kargil and Leh via a tunnel through the famous Zojila Pass.
- Located at more than 11,500 feet above sea level, the all-weather Zojila tunnel will be 14.15 km long and ensure road connectivity even during winters.
- It will make the travel on the 434-km Srinagar-Kargil-Leh Section of NH-1 free from avalanches, enhance safety and reduce the travel time from more than 3 hours to just 15 minutes.
- The speed limit inside the tunnel is likely to be the same as in the Atal tunnel – 80 kmph.
Its significance
- The project holds strategic significance as Zojila Pass is situated at an altitude of 11,578 feet on the Srinagar-Kargil-Leh National Highway and remains closed during winters due to heavy snowfall.
- At present, it is one of the most dangerous stretches in the world to drive a vehicle and this project is also geo-strategically sensitive.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Export led growth
Mains level: Paper 3- Contribution of export in the growth
To aim for achieving high growth rate by focusing only on the domestic consumption and domestic demand could result in failure. The article argues for the focus on export to achieve the objective of growth.
Domestic-demand led growth and its limitations
- The debate in India has focused on domestic-demand led growth.
- But there is no known model of domestic demand/consumption-led growth, anywhere that has delivered quick, sustained, and high rates of economic growth for developing countries.
- India’s GDP growth of over 6 per cent after 1991 was associated with real export growth of about 11 per cent.
- Moreover, domestic-demand led growth requires more public spending, tax cuts, private investment, and/or financial sector reforms: which is not feasible in the present context due to pandemic.
- Consumption growth will be limited by the fact that household debt has grown rapidly in the last few years.
- Consumption now can grow only if incomes grow.
- Government spending could be a short run option, but COVID has limited that possibility.
Why India should not follow advanced countries’ fiscal policies
- India’s interest rates are not at zero and are unlikely to be so because of persistent inflation.
- India’s borrowing is still considered risky which is reflected in ratings.
- The favourable interest rate-growth differential that supports expansionary policy in the advanced countries is absent in India.
- India may well have scope for expansionary fiscal policy in the short run but not as a medium run growth strategy.
Why India should focus on export
- Given all the above factors, India does not have the luxury of abandoning export orientation because the alternatives are so limited.
- India’s market is too small to sustain any kind of serious import substitution strategy.
- Small size of the market makes it difficult to offer investors the domestic market as bait and incentivising them to export.
- India’s big, unexploited opportunities are in unskilled labour exports.
- India is vastly under-exporting relative to its labour force.
- Because China’s wages are rising as it has become richer, it has vacated about $140 billion in exports in unskilled-labour intensive sectors.
- Post-COVID, the move of investors away from China will probably accelerate to hedge against supply chain disruptions.
- India did not take advantage of the first China opportunity, now, a second opportunity stemming from geo-politics should be seized by India.
- As India contemplates atmanirbharta, two deeper advantages of export orientation are always worth remembering.
- 1) Foreign demand will always be bigger than domestic demand for any country.
- 2) If domestic producers are competitive internationally, they will be competitive domestically and domestic consumers and firms will also benefit.
Why openness of ecnonomy is important
- Exploiting this opportunity in unskilled exports requires more not less openness.
- To be internationally competitive, many parts and components have to be imported from so many different sources.
- One indicator is the foreign or import contribution to exports.
- China and Vietnam at the time of their export boom in textiles and clothing suggests that exports were highly dependent on imports (between 40 and 45 per cent).
- In contrast, India’s import share is about 16 per cent.
- Achieving Chinese and Vietnamese levels of success will therefore require greater imports and openness.
Way forward
- Export success will require genuine easing of costs of trading and doing business in India.
- In the case of clothing, a key policy change in India will be to eliminate tariffs on all inputs.
- It will also require signing free trade agreements with Europe that still impose high duties on India’s clothing export, while Bangladeshi and Vietnamese exports which enjoy preferential access to world markets.
Consider the question “As India contemplates atmanirbharta, we should not forget that export dynamism is essential for the rapid and sustained high economic growth. Comment.”
Conclusion
In sum, resisting the misleading allure of the domestic market, India should zealously boost export performance and deploy all means to achieve that. Pursuing rapid export growth in manufacturing and services should be an obsession with self-evident justification.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: The Quad
Mains level: Paper 2- Fourth factors the Quad must consider about Asia
The article highlights the 4 issues related to the history and geopolitics of Asian that the Quad members should pay attention to while formulating the future course of action.
The 4 factors
If the Quad is to prosper as a geopolitical construct, it would do well to heed four lessons drawn from the long arc of Asia’s history and geopolitics.
1) Lack of existence of Indo-Pacific system
- There has never been Indo-Pacific system ever since the rise of the port-based kingdoms of Indochina in the first half of the second millennium.
- There were two Asian systems — an Indian Ocean system and an East Asian system — with intricate sub-regional balances.
- The effort by a U.S. to artificially manufacture to combine the Indo and the Pacific into a unitary system is unlikely to succeed.
2) Lack of peaceful existence dominated by any power
- The Indo-Pacific region possesses no prior experience of long period of peace, prosperity and stability engineered from its maritime fringes.
- Rather, dynamic long cycles of Chinese influence radiating outwards have alternated with sharp periods of turmoil.
- The of ASEAN-centred multilateralism is more in tune with regional tradition and historical circumstance.
- For their part, the Indo-Pacific’s ‘flanking powers’, India and Japan, have never balanced Chinese power throughout their illustrious histories.
3) India must use its leverage judiciously
- The sea lines of communication constitute the important links connecting Indian Ocean to the Western Pacific.
- It is also a valuable arena of leverage vis-à-vis Chinese shipping and resource flows.
- This leverage must be wielded judiciously on India’s terms, not on the Quad’s terms.
- The Quad, after all, has little to offer materially with regard to New Delhi’s continental two-front dilemma.
- However, ceding this chokepoint leverage will invite overwhelming Chinese pressure against the full range of India’s South Asian interests — to which the other Quad members possess neither will nor desire to answer.
4) Check on China’s India Ocean Ambitions
- The Quad has a valuable role to play as a check on China’s Indian Ocean ambitions.
- India must develop ingrained habits of interoperable cooperation with its Quad partners.
- This interoperable cooperation could pre-emptively dissuade China from mounting a naval challenge in its backyard.
Conclusion
The Quad must consider these factors while formulating the future course of action.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bond markets, SLR
Mains level: Paper 3- Issues with the financial markets in India
The article discusses the themes of the recently published books by Viral Acharya and Urjit Patel. Both the books deal with the issues with the financial markets in India
Context
- Two recently published books by Viral Acharya and Urjit Patel throws light on the issues with India’s finance market and role of RBI and the government.
Importance of financial markets
- Banks along with bond and equity markets oversee the matching of savers with borrowers.
- Without financial markets, businesses would be restricted to investing out of retained earnings alone.
- The financial markets have to satisfy the return appetites of savers while minimising their risk exposure.
Undue preference to fiscal interest of the government
- A major theme of Acharya’s book is the rampant subjugation of the financial and monetary infrastructure to the fiscal interests of the government.
- Consider, for example, the conduct of monetary policy.
- Since bank assets are marked to market, cuts in interest rates induce treasury gains for banks that effectively recapitalises them.
- Consequently, rate cuts are preferred by governments needing to inject capital into public sector banks (PSBs).
- For the same reasons, liquidity injections, which raise bond prices, are preferred to liquidity absorptions.
- Fiscal compulsions of government can induce liquidity policies that have the opposite effect on the rate-setting by the MPC.
- This contradiction is further complicated by the fact that the RBI is also the debt management agency for the government.
- As a debt management agency, RBI’s key tasks is to sell government bonds at the highest possible price.
- Pressures for regulatory forbearance in recognising NPAs often arise from the government wanting to avoid having to recapitalise PSBs.
- The sameexplains the fact that stock exchanges in India having a 30-day disclosure norm for registered borrowers who default on their bank loans.
- The standard in developed capital markets is immediate disclosure.
- But that would induce an overnight rating downgrade of the concerned borrower thereby triggering additional capital provisioning needs for the lending bank.
Conflict in government owning the PSBs
- Patel’s book deals with conflicts inherent in the state owning the banks that control about three-fourth of total banking assets in India.
- The primary problem with PSBs is that governments have used them as tools for macroeconomic management.
- PSBs are regularly used for resource mobilisation to finance fiscal deficits.
- The government often announces credit policies rather than having the banks allocate credit based on risk-return management criteria.
- PSBs are the favoured instrument for meeting employment targets, supporting farmers through loan write-offs, etc.
What are the implications of government owning PSBs
- This kind of state interface naturally induces extreme levels of moral hazard in the behaviour of both debtors and creditors.
- PSBs are not incentivised to exercise due diligence since they expect regulatory forbearance and recapitalisation in the event of rising NPAs.
- The dilution of efficiency-based principles for banking has implications for all borrowers.
- Creditworthy borrowers pay the risk premia to cover the riskiness due to unhealthy borrowers.
- The worsening risk pool of borrowers is partly to blame for the fact that long term borrowing rates have remained stubbornly high despite repeated rate cuts by the MPC over the past 18 months.
3 Problems and 3 Reforms
Problems
- There are three obvious problems with the existing architecture.
- The first is the state ownership of banks.
- The second is the chronically high fiscal deficit run by the consolidated public sector.
- The third is the widespread perception that market regulators work under close government direction.
Reforms
- Dealing with this will require, at a minimum, three reforms.
- First, there has to be a wholehearted attempt at privatisation of PSBs.
- Second, the RBI needs to be relieved of its public debt management role.
- Third, the RBI has to be empowered to act independently of the government.
Conclusion
The growth of firms, which is a key driver of productivity and growth, requires well-functioning financial markets. India has a lot of work to do.
Back2Basics: How cuts in interest rates induce treasury gains for banks?
- Falling rates across the debt markets increase the demand for instruments that pay higher interest.
- At this stage, prices of bonds which banks had bought when interest rates were high rise.
- Hence, the value of government securities that banks have bought for the SLR requirement rises.
- This increases profits as banks record the market value of these securities in their books.
- Under this process, called marking to market, organisations record profits/losses in their books on a daily basis without actually booking any profit or loss.
- So, more SLR bonds the bank holds, the higher its mark-to-market profit.
- The other reasons bank profits rise when interest rates fall are pick-up in growth as companies borrow at lower rates as well as improvement in liquidity.
Source:-
https://www.businesstoday.in/moneytoday/banking/banks-to-make-huge-treasury-gains-on-bonds-on-rbi-rate-cut/story/193552.html
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Auction Theory, Nobel Prizes
Mains level: Auction theory and its utility
This year, the Nobel Prize for Economics was awarded to Paul R Milgrom and Robert B Wilson for “improvements to auction theory and inventions of new auction formats”.
Do you remember the 2G spectrum scam, Coalgate scam etc. that rocked the nation? Can you relate this auction theory for bidding public assets to private entities?
What is Auction?
- Essentially, it is about how auctions lead to the discovery of the price of a commodity.
- Auction theory studies how auctions are designed, what rules govern them, how bidders behave and what outcomes are achieved.
- When one thinks of auctions, one typically imagines the auction of a bankrupt person’s property to pay off his creditors.
- Indeed, this is the oldest form of auction. This simple design of such an auction — the highest open bidder getting the property (or the commodity in question) — is intuitively appealing as well.
Evolving definitions of auction
- Over time, and especially over the last three decades, more and more goods and services have been brought under auction.
- The nature of these commodities differs sharply. For instance, a bankrupt person’s property is starkly different from the spectrum for radio or telecom use.
- Similarly, carbon dioxide emission credits are quite different from the spot market for buying electricity, which, in turn, is quite different from choosing which company should get the right to collect the local garbage.
- In other words, no one auction design fits all types of commodities or seller.
The Auction Theory
Three key variables need to be understood before we move to actual propositions.
(1) Rules of the auction
- Imagine participating in an auction. Your bidding behaviour is likely to differ if the rules stipulate open bids as against closed/sealed bids.
- The same applies to single bids versus multiple bids, or whether bids are made one after another or everyone bids at the same time.
(2) Commodity or service
- The second variable is the commodity or service being put up for auction. In essence, the question is how each bidder values an item.
- This is not always easy to ascertain. In terms of telecom spectrum, it might be easier to peg the right value for each bidder because most bidders are likely to put the spectrum to the same use.
- This is called the “common” value of an object.
(3) Uncertainty
- The third variable is uncertainty.
- For instance, which bidder has what information about the object, or even the value another bidder associates with the object.
The theory
- Wilson developed the theory for auctions of objects with a common value — a value which is uncertain beforehand but, in the end, is the same for everyone”.
- Wilson showed what the “winner’s curse” is in an auction and how it affects bidding.
- As shown in the illustration, it is possible to overbid — $50 when the real value is closer to $25. In doing so, one wins the auction but loses out in reality.
- Milgrom “formulated a more general theory of auctions that not only allows common values but also private values that vary from bidder to bidder”.
- He analysed the bidding strategies in a number of well-known auction formats, demonstrating that a format will give the seller higher expected revenue when bidders learn more about each other’s estimated values.
Significance of Auction theory
- Throughout history, countries have tried to allocate resources in various ways.
- Some have tried to do it through political markets, but this has often led to biased outcomes. For Ex: The rationing of essential goods worked in State-controlled economies. People who were close to the bureaucracy and the political class came out ahead of others.
- Lotteries are another way to allocate resources, but they do not ensure that scarce resources are allocated to people who value it the most.
- Auctions, for a good reason, have been the most common tool for thousands of years used by societies to allocate scarce resources.
- When potential buyers compete to purchase goods in an auction, it helps sellers discover those buyers who value the goods the most.
- Further, selling goods to the highest bidder also helps the seller maximise his or her revenues. So, both buyers and sellers benefit from auctions.
- Whether it is the auction of spectrum waves or the sale of fruits and vegetables, auctions are at the core of allocation of scarce resources in a market economy.
What are the criticisms levelled against auctions and what are the economists contribution?
1.Issue of Winner’s Curse
- The most common one is that auctions can lead buyers to overpay for resources whose value is uncertain to them.
- This criticism, popularly known as the ‘winner’s curse’, is based on a study that showed how buyers who overpaid for U.S. oil leases in the 1970s earned low returns. Dr. Wilson was the first to study this matter.
- The rational bidders may decide to underpay for resources in order to avoid the ‘winner’s curse’, and Dr. Wilson argued that sellers can get better bids for their goods if they share more information about it with potential buyers
2.Auction formats
- Economists traditionally working on auction theory believed that all auctions are the same when it comes to the revenues that they managed to bring in for sellers. The auction format, in other words, did not matter.
- This is known as the ‘revenue equivalence theorem’.
- But Dr. Milgrom showed that the auction format can actually have a huge impact on the revenues earned by sellers.
- The most famous case of an auction gone wrong for the seller was the spectrum auction in New Zealand in 1990.
- In what is called a ‘Vickrey auction’, where the winner of the auction is mandated to pay only the second-best bid, a company that bid NZ$1,00,000 eventually paid just NZ$6 and another that bid NZ$70,00,000 only paid NZ$5,000.
- In particular, Dr. Milgrom showed how Dutch auctions, in which the auctioneer lowers the price of the product until a buyer bids for it, can help sellers earn more revenues than English auctions.
- In the case of English auctions, the price rises based on higher bids submitted by competing buyers. But as soon as some of the bidders drop out of the auction as the price rises, the remaining bidders become more cautious about bidding higher prices.
Conclusion
- The contributions of Dr. Milgrom and Dr. Wilson have helped governments and private companies design their auctions better.
- This has, in turn, helped in the better allocation of scarce resources and offered more incentives for sellers to produce complex goods.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: Money laundering and terror financing
Pakistan is unlikely to exit the Financial Action Task Force (FATF’s) greylist with this plenary session as well.
Practice question for mains:
Q.What is FATF? Discuss its role in combating global financial crimes and terror financing.
What is the FATF?
- FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
- The FATF Secretariat is housed at the OECD headquarters in Paris.
- It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
Why is Pakistan under its scanner?
- Pakistan has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
- FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
- In June 2018, Pakistan gave a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime, and to address its strategic counter-terrorism financing-related deficiencies.
- Pakistan and the FATF then agreed on the monitoring of 27 indicators under a 10-point action plan, with specific deadlines.
- The understanding was that the successful implementation of the action plan, and its physical verification by the APG, would lead the FATF to move Pakistan out of the Grey List.
- However, Islamabad managed to satisfy the global watchdog over just five of them.
B2BASICS
What are the Black List and Grey List of the FATF?
FATF has 2 types of lists;
1. Black List
2. Grey List
1. Meaning of Black List: Only those countries are included in this list that FATF considers as uncooperative tax havens for terror funding. These countries are known as Non-Cooperative Countries or Territories (NCCTs). In other words; countries that are supporting terror funding and money laundering activities are placed in the Blacklist.
The FATF blacklist or OECD blacklist has been issued by the Financial Action Task Force since 2000 and lists countries which it judges to be non-cooperative in the global fight against money laundering and terror funding.
The FATF updates the blacklist regularly, adding or deleting entries.
(This map shows the countries included in the Greylist)
2. Meaning of Grey List: Those countries which are not considered as the safe heaven for supporting terror funding and money laundering; included in this list. The inclusion in this list is not as severe as blacklisted.
Now Grey list is a warning given to the country that it might come in Black list (Just like a yellow card in a football match). If a country is unable to curb mushrooming of terror funding and money laundering; it is shifted from grey list to black list by the FATF.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: FCRA
Mains level: FCRA
The Ministry of Home Affairs (MHA) has asked all NGOs seeking foreign donations to open a designated FCRA account at the State Bank of India’s New Delhi branch.
What is the FCRA?
- The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
- First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
- The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.
- The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.
What happens once registered?
- Registered associations can receive a foreign contribution for social, educational, religious, economic and cultural purposes.
- Filing of annual returns, on the lines of Income Tax, is compulsory.
- In 2015, the MHA notified new rules, which required NGOs to give an undertaking that the acceptance of foreign funds.
- It ruled that it is not likely to prejudicially affect the sovereignty and integrity of India or impact friendly relations with any foreign state and does not disrupt communal harmony.
- It also said all such NGOs would have to operate accounts in either nationalized or private banks which have core banking facilities to allow security agencies access on a real-time basis.
Who cannot receive foreign donations?
- Members of the legislature and political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
- However, in 2017 the MHA amended the 1976-repealed FCRA law paving the way for political parties to receive funds from the Indian subsidiary of a foreign company or a foreign company in which an Indian holds 50% or more shares.
How else can receive foreign funding?
- The other way to receive foreign contributions is by applying for prior permission.
- It is granted for receipt of a specific amount from a specific donor for carrying out specific activities or projects.
- But the association should be registered under statutes such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or Section 25 of the Companies Act, 1956.
- A letter of commitment from the foreign donor specifying the amount and purpose is also required.
When is a registration suspended or cancelled?
- The MHA on inspection of accounts and on receiving any adverse input against the functioning of an association can suspend the FCRA registration initially for 180 days.
- Until a decision is taken, the association cannot receive any fresh donation and cannot utilise more than 25% of the amount available in the designated bank account without the permission of the MHA.
- The MHA can cancel the registration of an organisation which will not be eligible for registration or grant of ‘prior permission’ for three years from the date of cancellation.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now