Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Legal basis for MSP
Context
Amid the demand for a guarantee of MSP, many commentators fail to understand the true spirit of the demand for a legal MSP.
How demand for legal backing for MSP is misinterpreted?
- Mandatory enforcement of price above MSP: The demand has been interpreted as a mandatory enforcement of trade in agricultural produce, including private trade to be necessarily at or above the MSP for that crop.
- Nationalisation of agricultural trade: Another interpretation is the nationalisation of agricultural trade whereby the government promises to buy all the crop produced at MSP.
- Commentators have been using these two interpretations to project large estimates of government expenditure needed to implement.
- They fail to understand the true spirit of the demand for a legal MSP.
Current nature of MSP
- It is not an income support program: By definition MSP is not an income support programme.
- Intervention to stabilise prices: It is designed to be used as government intervention to stabilise prices, to provide remunerative prices to farmers.
- Public procurement program to meet requirements of NFSA: Currently, it is no more than a public procurement programme to meet the requirements of the National Food Security Act (NFSA).
- Only rice and wheat procured: As against the official announcement of MSP for 23 crops, only two, rice and wheat are procured as these are distributed in NFSA.
Larger context of demand for legal backing to MSP
- Droughts and declining commodity prices: In addition to the twin droughts of 2014 and 2015, farmers have also suffered from declining commodity prices since 2014.
- Impact of demonetisation and GST: The twin shocks of demonetisation and hurried rollout of GST, crippled the rural economy, primarily the non-farm sector, but also agriculture.
- Impact of pandemic: The slowdown in the economy after 2016-17 followed by the pandemic has ensured that the situation remains precarious for majority of the farmers.
- Increased input prices: Higher input prices for diesel, electricity and fertilisers have only contributed to the misery.
- In this context, the demand for ensuring remunerative prices is only a reiteration of the promise by successive governments to implement the Swaminathan Committee report.
What should be the true nature of MSP?
- Intervene to stabilise price: A true MSP requires the government to intervene whenever market prices fall below a pre-defined level, primarily in case of excess production and oversupply or a price collapse due to international factors.
- It does not require the government to buy all the produce but only to the extent that creates upward price pressures in the market to stabilise prices at the MSP level.
Way forward
- Mechanism for market intervention: What is needed is a mechanism to monitor the prices.
- While such a mechanism already exists, a policy for requisite market intervention is missing.
- Use MSP as incentive to achieve nutritional security and reduce import dependence: MSP can also be an incentive price for many of the crops which are desirable for nutritional security such as coarse cereals, and also for pulses and edible oils for which we are dependent on imports.
- Include pulses, edible oil and millets in PDS: Despite repeated demands from food activists, there has not been any progress in including pulses, edible oils and millets in PDS.
- A guaranteed MSP then is nothing more than restoring the true spirit and functions of MSP, applicable to a broad range of crops and all sections of farmers.
Issues
- The current MSP regime has no relation to prices in the domestic market.
- Its sole raison d’être is to fulfil the requirements of NFSA making it effectively a procurement price rather than an MSP.
- It is basically a lack of understanding of what agriculture needs and above all a lack of political commitment to ensure remunerative prices to farmers.
Conclusion
An efficient and functional MSP is certainly the least that the government can do to protect a sector which remains the largest employer and a refuge for the poor and vulnerable as was seen during the pandemic.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: Paper 3- Challenges to GST
Context
Seen purely from a revenue point of view and as a fiscal policy tool, India’s GST is still on a rocky road.
Background
- The GST was launched by India on the midnight of July 1, 2017.
- Benefits of GST: Hailed as a landmark reform in India’s tax history, it was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices.
- Fiscal federalism: It was also projected as a watershed in India’s fiscal federalism.
- the States have forgone a substantial part of their own tax revenue.
- States were in turn guaranteed a GST compensation assuring 14% growth in their GST revenue during the initial five years.
- India’s GST architecture: India’s GST architecture is built on the firm foundations of a GST Council and the GST Network (GSTN).
- GST Council as due federal process: The first is the key decision-making body, chaired by the Union Finance Minister with a Minister of State in charge of Finance and the Finance Ministers of States as members.
- This is envisaged as a due federal process to protect the interests of the States.
Unresolved issues
[1] Revenue neutrality not achieved
- India’s GST paradigm stands on two key pillars: revenue neutrality and GST compensation for the States.
- The assured revenue neutrality remains a mirage and many States have experienced a declining tax-GDP ratio.
- Decline in tax to GDP ratio of state: In the case of major 18 States, the ratio of own tax revenue to GDP has declined.
- While the share of the Centre in total GST increased by 6%, that of States put together lagged behind with only a 4.5% increase.
- Stark differences between the Revenue Neutral Rates (RNR) for the producing States and consumption State have been observed. States producing exempted food grains also lost out.
- Since the rates were lower under GST vis-à-vis the VAT regime, revenue neutrality was not adhered ab initio.
- The problems were compounded with massive evasion following the dismantling of check posts, and later on fake invoices, that grew by leaps and bounds.
- Experience of other countries: The South African experience illustrates how zero-rating and large exemptions have defeated revenue goals.
- Canadian experience shows that GST could be improved by limiting zero rating, tax-exemptions and harmonising tax rates.
- The resilience of the economy at the time of rolling out of GST is critical for its wider reception as the Australian experience shows.
[2] Not conducive to co-operative federalism
- While the States collectively forewent 51.8% of their total tax revenue, the Centre surrendered only 28.8%.
- Yet, GST is shared equally between the Centre and States despite two expert committees recommended for a higher share for the States.
- Given the revenue neutrality failure and the host of other issues, many of the States are left with no option except to depend on GST compensation.
- This is not conducive to sustainable co-operative federalism.
[3] Need for revenue sharing formula for IGST
- Although IGST is a key source of revenue for many of the States, the clearing house mechanism and the process therein remains unknown territory.
- It was pointed out that GST is discriminatory to manufacturing States, indicating the need for a revenue sharing formula that duly incentivises exporting States by sharing IGST revenue among three parties instead of two.
[4] Other issues
- Swift functioning of Input tax credit: The Malaysian experience demonstrates the need for swift and transparent functioning of the input tax credit system through a flawless IT infrastructure.
- We operate in an almost information vacuum especially with respect to IGST along with several glitches in the digital architecture.
- GSTN is now in the doldrums.
- Data monopoly: It neither makes effective use of the massive and invaluable data being generated nor shares them to enable others to make use of them.
- Such practice in “data monopoly” was a fact of history in India’s statistical system and has to go sooner rather than later.
- Australia, having several similarities with India, in terms of Centre and the subnational units, and destination-based, multi-stage tax with input credit provisions, has not been revenue-buoyant.
- It is a matter for consideration whether widening exemptions and the replacing of income-tax by GST in the case of small and medium enterprises are advisable measures in the Indian context.
Consider the question “What are the challenges facing the GST in India? What India can learn from the experience of other countries’ experience.”
Conclusion
Despite many years of efforts in evolving an Indianised GST system and over 50 months of adjustments with over a thousand notifications, with accompanying uncertainties in the first year and the novel coronavirus pandemic and the lockdown still in the saddle, GST continues to be an unfinished agenda. But how far and how long?
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: International Solar Alliance (ISA)
Mains level: Success of the ISA
The UN General Assembly has conferred Observer Status to the International Solar Alliance (ISA).
Significance of ‘Observer’ Status
- Observer status is a privilege granted by some organizations to non-members to give them the ability to participate in the organization’s activities.
- It is often granted by intergovernmental organizations (IGO) to non-member parties and international nongovernmental organizations (INGO) that have an interest in the IGO’s activities.
- Observers generally have a limited ability to participate in the IGO, lacking the ability to vote or propose resolutions.
About International Solar Alliance (ISA)
Hq: Gurugram, India
- The ISA is an alliance of more than 121 countries, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.
- The primary objective of the alliance is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels.
- The alliance is a treaty-based inter-governmental organization.
- The initiative was launched by PM Modi at the India Africa Summit and a meeting of member countries ahead of the 2015 United Nations Climate Change Conference in Paris in November 2015.
- A total of 80 countries have signed and ratified the ISA Framework Agreement and 101 countries have only signed the agreement.
Objectives of the ISA
- To mobilize investments of more than USD 1000 billion by 2030
- To take coordinated action for better harmonization, aggregation of demand, risk and resources, for promoting solar finance, solar technologies, innovation, R&D, capacity building etc.
- Reduce the cost of finance to increase investments in solar energy in member countries
- Scale up applications of solar technologies in member countries
- Facilitate collaborative research and development (R&D) activities in solar energy technologies among member countries
- Promote a common cyber platform for networking, cooperation and exchange of ideas among member countries
What does ISA formation signify?
- Climate action commitment: It symbolizes about the sincerity of the developing nations towards their concern about climate change and to switch to a low-carbon growth path.
- Clean energy: India’s pledge to the Paris summit offered to bring 40% of its electricity generation capacity from non-fossil sources (renewable, large hydro, and nuclear) by 2030.
- Global electrification: India has pledged to let solar energy reach to the most unconnected villages and communities and also towards creating a clean planet.
- Global cooperation: It is based on world cooperation irrespective of global boundaries.
- India’s Soft power: For India, possible additional benefits from the alliance can be a strengthening of ties with the major African countries and increasing goodwill for India among them.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: Global Methane Initiative, GMI
Mains level: GHGs emission
India has co-chaired along with Canada the Global Methane Initiative leadership meet held virtually.
About Methane
- Methane is a greenhouse gas, which is also a component of natural gas.
- There are various sources of methane including human and natural sources.
- The anthropogenic sources are responsible for 60 per cent of global methane emissions.
- It includes landfills, oil and natural gas systems, agricultural activities, coal mining, wastewater treatment, and certain industrial processes.
- The oil and gas sectors are among the largest contributors to human sources of methane.
- These emissions come primarily from the burning of fossil fuels, decomposition in landfills and the agriculture sector.
Global Methane Initiative (GMI)
- GMI is a voluntary Government and an informal international partnership having members from 45 countries including the United States and Canada.
- The forum has been created to achieve global reduction in anthropogenic methane emission through partnership among developed and developing countries having economies in transition.
- The forum was created in 2004 and India is one of the members since its inception and has taken up Vice-Chairmanship for the first time in the Steering Leadership along with USA.
- National governments are encouraged to join GMI as Partner Countries, while other non-State organizations may join GMI’s extensive Project Network.
Focus areas
The initiative currently focuses on five sectors, which are known sources of anthropogenic methane emissions:
- Agriculture
- Coal mining
- Municipal solid waste
- Municipal wastewater
- Oil and gas systems
Why focus on Methane?
- The emission of methane is a big concern as it is a greenhouse gas having 25-28 times harmful effect than carbon dioxide
- According to the UN, 25 % of the warming that the world is experiencing today is because of methane.
- Methane is the second-most abundant greenhouse gas in the atmosphere, after carbon dioxide.
- According to IPCC, methane accounts for about half of the 1.0 degrees Celsius net rise in global average temperature since the pre-industrial era.
Back2Basics: CO2 Equivalents
- Each greenhouse gas (GHG) has a different global warming potential (GWP) and persists for a different length of time in the atmosphere.
- The three main greenhouse gases (along with water vapour) and their 100-year global warming potential (GWP) compared to carbon dioxide are:
1 x – carbon dioxide (CO2)
25 x – methane (CH4) – I.e. Releasing 1 kg of CH4into the atmosphere is about equivalent to releasing 25 kg of CO2
298 x – nitrous oxide (N2O)
- Water vapour is not considered to be a cause of man-made global warming because it does not persist in the atmosphere for more than a few days.
- There are other greenhouse gases which have far greater global warming potential (GWP) but are much less prevalent. These are sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).
- There are a wide variety of uses for SF6, HFCs, and PFCs but they have been most commonly used as refrigerants and for fire suppression.
- Many of these compounds also have a depleting effect on ozone in the upper atmosphere.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: Raidioactivity
Mains level: Water Pollution
Radioactive pollution of water is newly emerging but is of grave concern for water pollution and human health.
Quick recap: Radioactivity
- Radioactivity is the phenomenon of spontaneous emission of particles or waves from the unstable nuclei of some elements.
- There are three types of radioactive emissions: Alpha, Beta and Gamma.
- Alpha particles are positively charged He atoms, beta particles are negatively charged electrons and gamma rays are neutral electromagnetic radiations.
- Radioactive elements are naturally found in the earth’s crust.
Radioactive contamination of Water
- Natural: Percolation of naturally occurring radioactive materials (NORM) from the soil sediments to the aquifer causes groundwater contamination.
- Man-made: Anthropogenic sources of such pollution include- nuclear weapon investigation, nuclear calamities, nuclear powerhouses and dumping of radioactive waste.
Various contaminant elements
- Uranium, thorium and actinium are three NORM series that contaminate water resources.
- A number of radionuclides are found in surface and subsurface waters, among which 3H, 14C, 40K, 210Pb, 210Po, 222Rn, 226Ra, 228Ra, 232Th and 234,235,238U are common.
- Strontium-90, Caesium-137, etc are also formed by nuclear reactors, along with numerous unnecessary radioisotopes wastes.
- 40K and 7Be are the most commonly found radioactive elements in the sludge generated in sewage treatment plants.
- Nuclear reactors produce radioisotopes (Cobalt-60, Iridium-192, etc) that hand out as sources of gamma radiation in radiotherapy and numerous industrial appliances.
Oceanic sources
- Oceans and seas are the natural repositories of naturally occurring uranium. It is found in the form of uranyl carbonate ion.
- A significant concentration of uranium is supposed to be found in the greater salinity of the marine water.
- 40K (Radioactive Potassium) is also found in considerable concentration in the marine environment.
Measuring radioactive pollution
- Radioactivity is measured in Becquerel (SI unit) or in Curie.
- Energy absorbed per unit mass is measured by Gray, while the unit Sievert measures the quantity of radiation absorbed by human tissues.
- A small amount of radiation is found in all types of water but the extended amount of radiation is harmful to human health.
- Radioactivity in drinking water can be determined by a gross alpha test.
Hazards of such pollution
- Radioactive elements have an effect on the environment and can cause a risk to human healthiness if inhaled, injected or exposed.
- Human tissues absorb radiation through polluted water and foodstuff, which can cause serious health risks.
- High doses of radiation can cause acute radiation syndrome or cutaneous radiation injury.
- Exposure to radiation causes various disorders in human physiology, including cancer, leukaemia, genetic mutations, osteonecrosis, cataracts and chromosomal disruption.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: IXPE
Mains level: Not Much
NASA has launched a new mission named Imaging X-ray Polarimetry Explorer or IXPE.
About IXPE
- IXPE observatory is a joint effort of NASA and the Italian Space Agency.
- The mission will study “the most extreme and mysterious objects in the universe – supernova remnants, supermassive black holes, and dozens of other high-energy objects.”
- The mission’s primary length is two years and the observatory will be at 600 kilometers altitude, orbiting around Earth’s equator.
- IXPE is expected to study about 40 celestial objects in its first year in space.
What are the instruments onboard?
- IXPE carries three state-of-the-art space telescopes.
- Each of the three identical telescopes hosts one light-weight X-ray mirror and one detector unit.
- These will help observe polarized X-rays from neutron stars and supermassive black holes.
- By measuring the polarization of these X-rays, we can study where the light came from and understand the geometry and inner workings of the light source.
- This new mission will complement other X-ray telescopes such as the Chandra X-ray Observatory and the European Space Agency’s X-ray observatory, XMM-Newton.
Why is it important?
The mission will help scientists answer questions such as:
- How do black holes spin?
- Was the black hole at the center of the Milky Way actively feeding on surrounding material in the past?
- How do pulsars shine so brightly in X-rays?
- What powers the jets of energetic particles that are ejected from the region around the supermassive black holes at the centers of galaxies?
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
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: Sarayu River
Mains level: River interlinking and associated issues
PM will inaugurate the Saryu Nahar National Project.
Saryu Nahar National Project
- The Project involves the interlinking of five rivers – Ghaghara, Saryu, Rapti, Banganga and Rohini to ensure optimum usage of water resources of the region.
- It will benefit nine districts of Eastern Uttar Pradesh namely – Bahraich, Shravasti, Balrampur, Gonda, Siddharthnagar, Basti, Sant Kabir Nagar, Gorakhpur and Maharajganj.
- The sub canals with a length of 6,600km have been linked to the 318km main canal.
- The work on the project started in 1978 but due to lack of continuity, it got delayed and was not completed even after nearly four decades.
Benefits offered
- The project will provide assured water for irrigation of over 14 lakh hectares of land and benefit about 29 lakh farmers of over 6200 villages.
- The farmers of the region, who were the worst sufferers of the inordinate delay in the project, will now immensely benefit from the upgraded irrigation potential.
- They will now be able to grow crops on a larger scale and maximize the agri-potential of the region.
Back2Basics: Sarayu River
- The Sarayu is a river that originates at a ridge south of Nanda Kot mountain in Bageshwar district in Uttarakhand.
- It flows through Kapkot, Bageshwar, and Seraghat towns before discharging into the Sharda River at Pancheshwar at the India—Nepal border.
- Lower Ghaghara is also popularly known as Sarayu in India.
- Especially while it flows through the city of Ayodhya, the birthplace of legendary Rama.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now