Note4Students
From UPSC perspective, the following things are important :
Prelims level: Types of subsidies
Mains level: Paper 3- MSP and challenges ahead at WTO
Context
Amid the demand for legal backing to MSP, the question remains about whether India can provide a legal guarantee violating its international law obligations enshrined in the Agreement on Agriculture (AoA) of the World Trade Organization (WTO)?
Classification of subsidies under AoA: Trade distorting and non-trade distorting
- The objective of AoA: One of the central objectives of the AoA is to cut trade-distorting domestic support.
- Three categories: In this regard, the domestic subsidies are divided into three categories: ‘green box’, ‘blue box’ and ‘amber box’ measures.
- Non-trade distorting: ‘Green box’ subsidies (like income support to farmers de-coupled from production) and ‘blue box’ subsidies (like direct payments under production limiting programmes subject to certain conditions) are considered non-trade distorting.
- Countries can provide unlimited subsidies under these two categories.
- Trade-distorting subsidies: Price support provided in the form of procurement of crops at MSP is classified as a trade-distorting subsidy and falls under the ‘amber box’ measures, which are subject to certain limits.
So, how do countries measure ‘amber box’ support?
- Compute AMS: To measure ‘amber box’ support, WTO member countries are required to compute Aggregate Measurement of Support (AMS).
- AMS is the total of product-specific support (price support to a particular crop) and non-product-specific support (fertilizer subsidy).
Understanding the de minimis limit
- Under Article 6.4(b) of the AoA, developing countries such as India are allowed to provide a de minimis level of product and non-product domestic subsidy.
- This de minimis limit is capped at 10% of the total value of production of the product, in case of a product-specific subsidy; and at 10% of the total value of a country’s agricultural production, in case of non-product subsidy.
- Subsidies breaching the de minimis cap are trade-distorting.
Possibility of India overshooting the de minimis limit
- Relation between MSP and AMS: The procurement at MSP, after comparing it with the fixed external reference price (ERP) — an average price based on the base years 1986-88 — has to be included in AMS.
- Widening gap between ERP and MSP: Since the fixed ERP has not been revised in the last several decades at the WTO, the difference between the MSP and fixed ERP has widened enormously due to inflation.
- According to the Centre for WTO Studies, India’s ERP for rice, in 1986-88, was $262.51/tonne and the MSP was less than this.
- However, India’s applied administered price for rice in 2015-16 stood at $323.06/tonne, much more than the 1986-88 ERP.
- Procuring all the 23 crops at MSP, as against the current practice of procuring largely rice and wheat, will result in India breaching the de minimis limit making it vulnerable to a legal challenge at the WTO.
- Even if the Government does not procure directly but mandates private parties to acquire at a price determined by the Government, as it happens in the case of sugarcane, the de minimis limit of 10% applies.
Way forward
- Peace clause: Although a permanent solution is nowhere in sight, the countries have agreed to a peace clause.
- The peace clause forbids bringing legal challenges against price support-based procurement for food security purposes even if it breaches the limit on domestic support.
- The peace clause is applicable only for programmes that were existing as of the date of the decision and are consistent with other requirements.
- India’s procurement for rice and wheat, even if it violates the de minimis limit, will enjoy legal immunity.
- However, India will not be able to employ the peace clause to defend procuring those crops that are not part of the food security programme (such as cotton, groundnut, sunflower seed).
- Move from MSP to income-based support: Arguably, India can move away from price-based support in the form of MSP to income-based support, which will not be trade-distorting under the AoA provided the income support is not linked to production.
- Supplement price-based support with income-based support: Alternatively, one can supplement price-based support (keeping the de minimis limit in mind) with an income-based support policy.
Conclusion
The Government needs to engage with the farmers and create an affable environment to convince them of other effective policy interventions, beyond MSP, that are fiscally prudent and WTO compatible.
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: Omicron variant
Mains level: Paper 2- Importance of data in dealing with pandemic
Context
Questions are being asked about India’s preparedness as the cases with the Omicron variant of the Coronavirus has been on the rise in the country.
Where does India stand?
[1] The Positives
- Addressing oxygen shortage: The extreme shortages of oxygen that we saw barely six months ago will hopefully not be a feature of a third wave.
- Vaccinated population: We have now vaccinated more than 50% of the adult population with both doses of vaccine, and approximately 85% have received one or two doses.
- Ramping up testing to deal with a spike should not require an increase in capacity.
- More vaccine doses: We have more vaccine doses than in May 2021 and the potential for oral antiviral therapy in the near future.
[2] The negatives
- Lack of data: An urgent and important one is the lack of publicly available data on the pandemic from Government sources, particularly in regard to testing, but also in terms of being able to correlate disease severity with age, prior medical conditions, locations and other variables.
- Data from the Indian Council of Medical Research (ICMR), India’s premier medical research agency, remains inaccessible.
- The National Centre for Disease Control (NCDC) has not responded.
- The CoWIN data contains valuable information but it is of little value for future planning and prediction unless it can be tied to testing data and clinical information at the level of individuals.
- ICMR data not correlated to CoWIN platform data: The Indian Council of Medical Research holds data on every COVID-19 test conducted in India.
- However, these data are not correlated to the vaccine data in the CoWIN platform.
- Data with States is inaccessible: Data on hospitalisations, etc. are apparently available at the State level, but seem inaccessible.
What we can know from the data about pandemic
- Infer the probability of reinfection: If we knew that a person had tested positive on successive tests separated by, say four months or more, with a negative test in-between, that would suggest a reinfection.
- We could then infer the probability of such a reinfection.
- Probability of vaccine breakthrough infection: With information about testing and vaccination status, we could compute the probability of a vaccine breakthrough event.
- To know the efficacy of single vaccine dose: By checking to see whether the positive test happened after the first but before the second dose of vaccine, or after the second dose, the relative efficacy of such single vaccine doses at preventing disease could be derived.
- Effect of the vaccine on disease severity: By examining symptoms reported after a vaccine breakthrough event, we could understand the extent to which vaccines reduce disease severity.
- Impact of new variant: Add to this a layer of sequence information, and we could study the impact of new variants.
Role of the volunteer organisation
- The most trustworthy and granular data on cases in India have resulted from the remarkable and public-spirited work of a volunteer organisation, Covid19India.org.
- Their work has now been taken over by several other voluntary groups, all operating on the same broad principles of data accessibility: covid19bharat.org, incovid19.org and covid19tracker.in.
Way forward
- Commitment towards data accessibility: We need to stress on data availability because this is the one area where a swift realignment is possible.
- The more widely data are shared, the greater the likelihood of integration of the rapidly shifting scientific frontier with clinical practice.
- Learning from the experience of South Africa: With the advantages of a relatively high-quality surveillance system among low- and middle-income countries (LMIC) countries, bolstered by a commitment towards transparency and data accessibility, South Africa’s rapid sharing allowed the world to prepare swiftly for the appearance of the highly mutated Omicron variant.
- It is clear that pre-emptive decisions on vaccination and other measures could be made faster and better if more integrated data were available.
Consider the question “Why availability and accessibility of data is important in dealing with the Covid-19 pandemic? What are the challenges facing health data accessibility in India?”
Conclusion
Now, more than ever before is the time for us to urgently reassess our attitude towards data for public health purposes and the role of national health agencies in sharing data, generated with public funds, with scientists in India and across the world.
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: Defence manufacturing in India
India’s defense exports have increased manifold from ₹1,521 crore in 2016-17 to ₹8,434.84 crore in 2020-21.
Note: This newscard provides substantial data about India’s defense exports and imports, which is highly relevant for mains and interview. Kindly bookmark this article.
India’s defense exports
- India has the strength of low-cost, high-quality production.
- The Government has set an ambitious target to achieve exports of about ₹35,000 crore ($5 billion) in aerospace and defense goods and services by 2025.
- The Defense Ministry has clarified that the names of the major defense items exported cannot be disclosed due to strategic reasons.
- To boost indigenous manufacturing, the govt had issued two “positive indigenization lists” consisting of 209 items that cannot be imported and can only be procured from domestic industry.
A significant achievement
- According to the latest report of the Swedish think tank Stockholm International Peace Research Institute (SIPRI), three Indian companies figure among the top 100 defence companies in the 2020 rankings.
- These include Hindustan Aeronautics Limited (HAL), Ordnance Factory Board and Bharat Electronics Ltd (BEL).
Yet India is a top importer
- While India remained among the top importers, it was also included in the Top 25 defence exporters.
- There was an overall drop in India’s arms imports between 2011-15 and 2016-20, according to another SIPRI report of 2020.
Items that India export
- India has supplied different types of missile systems, LCA/helicopters, multi-purpose light transport aircraft, warships and patrol vessels etc.
- It is also willing to export artillery gun systems, tanks, radars, military vehicles, electronic warfare systems and other weapons systems to IOR nations.
Major partners: South Asian Countries
- Vietnam is procuring 12 Fast Attack Craft under a $100 million credit line announced by India.
- It is also interested in Advanced Light Helicopters and Akash surface-to-air missiles.
- HAL has pitched its helicopters and the Tejas LCA to several Southeast Asian and West Asian nations and is in the race to supply the LCA to Malaysia.
- Discussions on the sale of BrahMos supersonic cruise missiles, jointly developed by India and Russia, are at an advanced stage with some Southeast Asian nations.
Steps taken by the Centre to boost defence production
- Licensing relaxation: Measures announced to boost exports since 2014 include simplified defence industrial licensing, relaxation of export controls and grant of no-objection certificates.
- Lines of Credit: Specific incentives were introduced under the foreign trade policy and the Ministry of External Affairs has facilitated Lines of Credit for countries to import defence product.
- Policy boost: The Defence Ministry has also issued a draft Defence Production & Export Promotion Policy 2020.
- Indigenization lists: On the domestic front, to boost indigenous manufacturing, the Government had issued two “positive indigenization lists” consisting of 209 items that cannot be imported.
- Budgetary allocation: In addition, a percentage of the capital outlay of the defence budget has been reserved for procurement from domestic industry.
Issues retarding defence exports
- Excess reliance on Public Sector: India has four companies (Indian ordnance factories, Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL)) among the top 100 biggest arms producers of the world.
- Policy delays: In the past few years, the government has approved over 200 defence acquisition worth Rs 4 trillion, but most are still in relatively early stages of processing.
- Lack of Critical Technologies: Poor design capability in critical technologies, inadequate investment in R&D and the inability to manufacture major subsystems and components hamper the indigenous manufacturing.
- Long gestation: The creation of a manufacturing base is capital and technology-intensive and has a long gestation period. By that time newer technologies make products outdated.
- ‘Unease’ in doing business: An issue related to stringent labour laws, compliance burden and lack of skills, affects the development of indigenous manufacturing in defence.
- Multiple jurisdictions: Overlapping jurisdiction of the Ministry of Defence and Ministry of Industrial Promotion impair India’s capability of defence manufacturing.
- Lack of quality: The higher indigenization in few cases is largely attributed to the low-end technology.
- FDI Policy: The earlier FDI limit of 49% was not enough to enthuse global manufacturing houses to set up bases in India.
- R&D Lacunae: A lip service to technology funding by making token allocations is an adequate commentary on our lack of seriousness in the area of Research and Development.
- Lack of skills: There is a lack of engineering and research capability in our institutions. It again leads us back to the need for a stronger industry-academia interface.
Way forward
- Reducing import dependence: India was the world’s second-largest arms importer from 2014-18, ceding the long-held tag as the largest importer to Saudi Arabia, says 2019 SIPRI report.
- Security Imperative: Indigenization in defence is critical to national security also. It keeps intact the technological expertise and encourages spin-off technologies and innovation that often stem from it.
- Economic boost: Indigenization in defence can help create a large industry which also includes small manufacturers.
- Employment generation: Defence manufacturing will lead to the generation of satellites industries that in turn will pave the way for a generation of employment opportunities.
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: Right to be Forgotten
Mains level: Art 21 and its broad aspects
The Centre has informed the Delhi High Court that the Personal Data Protection Bill 2019 contains provisions related to the ‘right to be forgotten’.
Right to be Forgotten
- ‘Right to be forgotten’ is a fairly new concept in India where an individual could seek to remove or delete online posts which may contain an embarrassing picture, video or news articles mentioning them.
- It comes under the right to privacy which has been held to be a fundamental right by the Supreme Court under Article 21.
- In 2017, the Right to Privacy was declared a fundamental right by the Supreme Court in its landmark verdict.
Why in news?
- The Personal Data Protection Bill 2019 contains provisions related to the doctrine of ‘right to be forgotten’.
- It highlighted two judgments passed by the Orissa High Court and the Karnataka High Court where they have accepted the doctrine of the ‘right to be forgotten’ as an essential part of the ‘right to privacy’.
Mention in PDP Bill
- The PDP bill aims to set out provisions meant for the protection of the personal data of individuals.
- Clause 20 under Chapter V of this bill titled “Rights of Data Principal” mentions the “Right to be Forgotten.”
- It states that the “data principal (the person to whom the data is related) shall have the right to restrict or prevent the continuing disclosure of his personal data by a data fiduciary”.
- A data fiduciary means any person, including the State, a company, any juristic entity, or any individual who alone or in conjunction with others determines the purpose and means of the processing of personal data.
Implications
- Under the Right to be forgotten, users can de-link, limit, delete or correct the disclosure of their personal information held by data fiduciaries.
Other similar provisions
- Section 69A of the IT Act does provide for removal of “certain unlawful information” from an intermediary platform.
- It primarily applies to ‘national security and public order related issues’ only.
Also read:
Draft Personal Data Protection Bill, 2021
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: PMKSY
Mains level: Not Much
The Cabinet has given its approval to extend its umbrella scheme Pradhan Mantri Krishi Sinchayee Yojana for irrigation, water supply, groundwater and watershed development projects for another five years till 2026.
PM Krishi Sinchai Yojana
- The PMKSY was launched on 1st July, 2015 with the motto of “Har Khet Ko Paani”.
- It is being implemented to expand cultivated area with assured irrigation, reduce wastage of water and improve water use efficiency.
The scheme has basically combined three active projects under various ministries which is as follows:
- Accelerated Irrigation Benefit Program (Ministry of Water Resources)
- Integrated Watershed Management Program (Ministry of Rural Development)
- Farm Water Management Project of the National Mission on Sustainable Agriculture
Components of PMKSY
PMKSY seeks to provide a complete solution to farm level irrigation and assured irrigation for every farm
- It aims to integrate irrigation with the latest technological practices and cover more cultivable areas under assured irrigation
- Increase the implementation of water-saving technologies and precision irrigation which in other words can be said as More Crop Per Drop.
- PMKSY also targets the promotion of micro-irrigation in the form of sprinklers, rain-guns, drips, etc.
Advantages of Micro Irrigation
- Higher Profits
- Water Saving & Water Use Efficiency (WUE)
- Less Energy Costs
- Higher fertilizer-use efficiency (FUE)
- Reduced Labour Costs
- Reduce Soli Loss
- Marginal Solis & Water
- Efficient & Flexible
- Improved Crop Quality
- Higher Yields
Implementation of PMKSY
- Everything from planning and execution of plans is regionalized in PMKSY.
- District Irrigation Plans (DIPs) will identify the areas that require improved facilities in irrigation at block levels and district levels.
- State Irrigation Plan consolidates all the DIPs and it oversees the agricultural plans developed under the Rashtriya Krishi Vikas Yojana.
Funding pattern
- Funds will be allocated by the centre only if the state has prepared the district irrigation plans and the state irrigation plans.
- The state government’s share under PMKSY is 25% and rest is borne by the centre, with an exception for north-eastern states where contribution by the state government is 10%.
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: Sugarcane pricing mechanism
Mains level: Issues with Sugarcane Pricing
A World Trade Organization panel ruled that India violated international trade rules when it offered excessive subsidies for the production and export of sugar and sugarcane.
What did WTO say?
- Under WTO rules, India’s sugar subsidies are capped at a de minimis limit of 10% of the value of production.
- India’s policies were inconsistent with WTO rules that govern the levels at which nations can subsidize domestic agricultural production.
- WTO has asked it to withdraw its prohibited subsidies under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes within 120 days.
What was the complaint against India?
Australia, Brazil, and Guatemala said India’s domestic support and export subsidy measures appeared to be inconsistent with various articles against WTO’s:
- Agreement on Agriculture
- Agreement on Subsidies and Countervailing Measures (SCM)
- Article XVI (which concerns subsidies) of the General Agreement on Trade and Tariffs (GATT)
- Domestic Support: All three countries complained that India provides domestic support to sugarcane producers that exceed the de minimis level of 10% of the total value of sugarcane production.
- Various subsidies: They also raised the issue of India’s alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.
- Notifying support: Australia accused India of “failing” to notify its annual domestic support for sugarcane and sugar subsequent to 1995-96, and its export subsidies since 2009-10.
India’s reply to WTO panel
- India rejected the panel’s findings as “erroneous”, “unreasoned”, and “not supported by the WTO rules”.
- It argued that the requirements of Article 3 of the SCM Agreement are not yet applicable to India.
- It has a phase-out period of 8 years to eliminate export subsidies under the agreement.
- India also argued that its mandatory minimum prices are not paid by the governments but by sugar mills, and hence do not constitute market price support.
Must read:
Sugarcane Pricing in India
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: Chalcolithic culture in India
Mains level: Not Much
The Chalcolithic cultures of Central India are adequately investigated and studied informed the Ministry of Culture in particular reference to the sites of Eran and Tewar.
Major sites in Central India
[1] Eran (Dist. Sagar, MP )
- Eran (ancient Airikina) is situated on the left bank of the Bina (ancient Venva) river and surrounded by it on three sides.
- The recent excavation has unearthed a variety of antiquities including a copper coin, an iron arrowhead, terracotta bead, stone beads along with copper coins, stone celt, beads of steatite and jasper, etc.
- The occurrence of few specimens of plain, thin grey ware is noteworthy.
- The use of iron was evidenced by few metallic objects at the site.
[2] Tewar (Dist. Jabalpur, MP)
- Tewar (Tripuri) village is located 12 km west of Jabalpur district on Jabalpur – Bhopal highway.
- This excavation did not reach the natural soil and revealed four folds of cultural sequences i.e. Kushana, Shunga, Satvahana, and Kalachuri.
- Antiquarian remains in this excavation include viz remains of sculptures, hopscotch, terracotta balls, Iron nails, copper coins, terracotta beads, implements of Iron and terracotta figurine, ceramics red ware etc.
- It also revealed structural remains consist of brick wall and structure of sandstone columns.
Back2Basics: Chalcolithic Culture in India
- A completely different kind of culture known as Chalcolithic Culture was developed in central India and Deccan region by the end of the Neolithic period.
- It is characterized by the use of both stone and bronze implements.
Major Chalcolithic complexes in India
- Ahar culture c. 2,800-1,500 B.C.
- Kayatha culture c. 2,450-700 B.C.
- Malwa culture c. 1,900-1,400 B.C.
- Savalda culture c. 2,300-2,000 B.C.
- Jorwe culture c. 1,500 -900 B.C.
- Prabhas culture c. 2,000-1,400 B.C.
- Rangpur culture c. 1,700-1,400 B.C.
Important features
- The people of Chalcolithic culture had used unique painted earthenware usually black-on-red.
- The use of copper and bronze tools also evidenced on a limited scale.
- The economy was largely based on subsistence agriculture, stock-raising, hunting, and fishing.
- They, however, never reached the level of urbanization in spite they were using metal.
- They were contemporary of the Harappan culture, but some other were of later Harappan age.
Their locations
- The centers of Chalcolithic cultures flourished in semi-arid regions of Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra.
- The settlements of Kayatha culture were mostly located on the Chambal River and its tributaries.
- The settlements of Malwa culture are mostly located on the Narmada and its tributaries.
- The three best known settlements of Malwa culture are at Navdatoli, Eran, and Nagada.
- Navdatoli was one of the largest Chalcolithic settlements in the country spread in almost 10 hectares.
- The settlements of Rangpur culture are located mostly on Ghelo and Kalubhar rivers in Gujarat.
- More than 200 settlements of Jorwe culture are known. Greater numbers of these settlements are found in Maharashtra.
- The best known settlements of Jorwe culture are Prakash, Daimabad, and Inamgaon. Daimabad was the largest one that measured almost 20 hectares.
Development of Agriculture
- They cultivated both Kharif and Rabi crops in rotation and also raised cattle with it.
- They cultivated wheat and barley in Malwa region. Rice was cultivated in Inamgaon and Ahar.
- They also cultivated jowar, bajra, kulth, ragi, green peas, lentil, and green and black grams.
- Largely, the Chalcolithic cultures flourished in the black cotton soil zone.
Trade and Commerce
- The Chalcolithic communities traded and exchanged materials with other contemporary communities.
- A large settlement serves as the major centers of trade and exchange.
- Some of them were Ahar, Gilund, Nagada, Navdatoli, Eran, Prabhas, Rangpur, Prakash, Daimabad, and Inamgaon.
- The Ahar people settled close to the copper source and were used to supply copper tools and objects to other contemporary communities in Malwa and Gujarat.
- Identical marks embedded on most of the copper axes found in Malwa, Jorwe, and Prabhas cultures that might indicate that it may be the trademarks of the smiths who made them.
- It is found that Conch shell for bangles was traded from the Saurashtra coast to various other parts of the Chalcolithic regions.
- Gold and ivory come to Jorwe people from Tekkalkotta in Karnataka and semiprecious stones may have been traded to various parts from Rajpipla in Gujarat.
- Wheeled bullock carts were used for long distance trade, besides the river transport. The drawings of wheeled bullock carts have been found on pots.
Try this PYQ from CSP 2019. It is dicey, but you cannot escape such questions.
Q. Which one of the following is not a Harappan site?
(a) Chanhudaro
(b) Kot Diji
(c) Sohgaura
(d) Desalpur
Post your answers here.
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