Note4Students
From UPSC perspective, the following things are important :
Prelims level: PMANSY
Mains level: Paper 2- Allocation in Budget for health
The article analyses the allocation for the health sector in the Budget and highlights the need for more allocations.
Need to increase spending on health
- The Economic Survey argues for the need to increase public spending on healthcare to 2.5-3 per cent of the GDP — it’s about 1.5 per cent currently.
- The Survey points out that there is not much difference in terms of outcomes and quality between healthcare services in the private sector and such services in public centres.
- The Economic Survey, therefore, calls for strengthening the National Health Mission (NHM) along with Ayushman Bharat.
- NHM was initiated in 2005-06 to strengthen public health services.
- The Ayushman Bharat provide social insurance, thereby financing private sector services with public funds.
- The Economic Survey makes a strong pitch for greater regulation of health services in the private sector.
Break-up of allocation in Budget on health (and well being)
- The finance minister described “health and well-being” as one of the pillars of the budget in her budget speech and announcing a 137 per cent increase in allocations for it.
- She placed healthcare, water and sanitation and nutrition as the key components of this pillar.
- However, the figures in the budget documents reveal a different story.
- There is an absolute increase of 9.6 per cent in allocations for the Department of Health and Family Welfare that includes NHM and Ayushman Bharat.
- A 26.8 per cent increase for the Department of Health Research and 40 per cent increase for the AYUSH Ministry do not add up to much since each of them are only 3-4 per cent of the total health budget.
- A Finance Commission grant of Rs 13,000-crore and Rs 35,000-crore for COVID-19 vaccination are one-time allocations and, therefore, do not strengthen the overall system.
- The core health service and research ministries (H&FW and AYUSH) have together received only an 11 per cent increase.
- Even in COVID times, the health services get only 2.21 per cent of the total central budget — down from 2.27 per cent in the 2020-21 budget.
- Computing for inflation, the increase in allocation for health services alone disappears and actually becomes negative.
- Water and sanitation received a 179 per cent increase from Rs 21,518 crore to Rs 60,030 crore already earmarked for the flagship schemes, Swachh Bharat and Jal Jeevan Mission.
- But allocation for nutrition decreased by 27 per cent, with the “new” Poshan 2.0 merely combining the poorly performing Supplementary Nutrition Programme and Poshan project.
- Added together, health, water and sanitation and nutrition make up the claimed 137 per cent increase in allocation to “health” services — with a real decline in healthcare and nutrition.
Pradhan Mantri Atma Nirbhar Swasthya Yojana (PMANSY)
- Finance Minister also announced a new scheme, the Pradhan Mantri Atma Nirbhar Swasthya Yojana, to support the almost 29,000 health and wellness centres in the country.
- The scheme also envisages the creation of public health laboratories and critical care hospital blocks and virology institutes.
Concerns with PMANSY
- PMANSY has an announced allocation of Rs 64,180 crore over six years, but it does not find a place in the present budget documents.
- But these additional activities could have been slotted in the NHM.
- Since 2014, the allocation for NHM has been on the wane.
- Therefore, even the marginal 1.33 per cent increase (from Rs 27,039 crore to Rs 30,100 crore) is a demonstration of the government’s realisation that public services do matter.
- The allocations of about Rs 10,000-Rs 11,000 crore each year for the PMANSY is not enough for making the public services capable of “universal health coverage”.
- The High-Level Expert Group on Universal Health Coverage had estimated that by 2020, we need a 114 per cent increase in sub-centres and primary health centres, 179 per cent increase in community health centres and a 230 per cent increase in sub-district and district hospitals.
- Getting anywhere close to this requires doubling of real allocations every year over a five-year period to reach something like 10 per cent of the budget.
- In the present budget, it declines to a mere 2.21 per cent.
Way forward
- If such public provisioning for universal health coverage can’t be done, then effective low-cost rationalised service system options have to be designed.
- Insurance schemes only create the mirage of affordability of health services while adding to peoples’ expenses.
- Community and public services are indisputably the most cost-effective for any society.
Consider the question “Examine the benefits of the idea of health and well being under which health, water and sanitation and nutrition are clubbed together.”
Conclusion
Water and sanitation are meaningful for health, but not if it only inflates the allocation to “Health and Wellbeing”. What we need is the real increase in spending on health.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Sub-categorization of OBCs
The Centre has extended the tenure of the Commission to Examine Sub-categorisation of Other Backward Classes (OBCs) headed by Justice G Rohini, till 31st July this year.
Rs 1.92 crore have been spent on the Commission including salary, consultant fee and other expenses and the report is yet to be publicized. It is can be very well understood that the report will have huge political consequences.
What is the sub-categorisation of OBCs?
- OBCs are granted 27% reservation in jobs and education under the central government.
- In September 20202, a Constitution Bench of the Supreme Court reopened the legal debate on sub-categorisation of SCs and STs for reservations.
- The debate arises out of the perception that only a few affluent communities among over 2,600 included in the Central List of OBCs have secured a major part of this 27% reservation.
Need for sub-categorization
- The argument for sub-categorisation — or creating categories within OBCs for reservation — is that it would ensure “equitable distribution” of representation among all OBC communities.
- To examine this, the Rohini Commission was constituted on October 2, 2017.
- At that time, it was given 12 weeks to submit its report but has been given several extensions since, the latest one being the 10th.
- Before the Rohini Commission was set up, the Centre had granted constitutional status to the National Commission for Backward Classes (NCBC).
What are the Commissions’ terms of reference?
It was originally set up with three terms of reference:
- To examine the extent of inequitable distribution of benefits of reservation among the castes or communities included in the broad category of OBCs with reference to such classes included in the Central List;
- To work out the mechanism, criteria, norms and parameters in a scientific approach for sub-categorisation within such OBCs;
- To take up the exercise of identifying the respective castes or communities or sub-castes or synonyms in the Central List of OBCs and classifying them into their respective sub-categories.
The fourth term of reference was added on January 22, 2020, when the Cabinet granted it an extension:
- To study the various entries in the Central List of OBCs and recommend correction of any repetitions, ambiguities, inconsistencies and errors of spelling or transcription.
Why so many extensions are being given?
- This was added following a letter to the government from the Commission on July 30, 2019.
- In process of preparing the sub-categorised central list of OBCs, the Commission has noted several ambiguities in the list as it stands now.
- The Commission is of the opinion that these have to be clarified/rectified before the sub-categorised central list is prepared.
What progress has it made so far?
- In its letter to the government on July 30, 2019, the Commission wrote that it is ready with the draft report (on sub-categorisation).
- Following the latest term of reference given (on January 22, 2020) to the Commission, it is studying the list of communities in the central list.
How smooth has its work been?
- A hurdle for the Commission has been the absence of data for the population of various communities to compare with their representation in jobs and admissions.
- On August 31, 2018, then Home Minister had announced that in Census 2021, data of OBCs will also be collected, but since then the government has been silent on this.
- Many groups of OBCs have been demanding enumeration of OBCs in the Census.
What have its findings been so far?
- In 2018, the Commission analysed the data of 1.3 lakh central jobs given under OBC quota over the preceding five years and OBC admissions to central higher education institutions.
- The findings were: 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified as OBCs; 24.95% of these jobs and seats have gone to just 10 OBC communities.
- 983 OBC communities — 37% of the total — have zero representation in jobs and educational institutions; 994 OBC sub-castes have a total representation of only 2.68% in recruitment and admissions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Art. 239AA
Mains level: Delhi govt. - LG power tussle
The Ministry of Home Affairs (MHA) is all set to introduce legislation to amend a 1991 Act pertaining to the powers and functions of the Delhi government and the Lieutenant Governor (LG).
What is the new bill?
- The Bill is likely to clearly define the powers of the LG and the Delhi government on the lines of the Supreme Court judgment of February 2019.
- It is likely to give more teeth to the LG’s office.
Why need such a law?
- The Delhi UT government is often at loggerheads with the Centre on administrative matters in the Capital.
What made it to the news?
- A Supreme Court Bench of Justices A.K. Sikri and Ashok Bhushan had, other than the question of services, given a unanimous verdict on the role of the two authorities.
- In the February 14, 2019 verdict, the court upheld as “legal” the MHA’s 2015 notifications authorising the LG to exercise powers in relation to services.
- It had directed the Anti-Corruption Branch (ACB) police not to take cognizance of offences against Central government officials.
SC confirms HC findings
- The apex court confirmed the Delhi High Court’s finding that the ACB’s jurisdiction is confined to Delhi officials and statutory bodies and does not extend to Central government officials.
- Last year, the MHA notified the rules for the newly created UT of J&K, where it provided a solution in case of difference of opinion between the LG and a Minister.
- It ruled that if no agreement could be reached even after a month, the decision of the Lieutenant Governor shall be deemed to have been accepted by the Council of Ministers.
What are the key propositions?
- According to changes proposed in the new Act, the LG could act in his discretion in any matter that is beyond the purview of the powers of the Assembly of Delhi.
- This would be in matters related to the All India (Civil) Services and the ACB.
Back2Basics: Special Status for New Delhi
- Article 239AA of the Constitution of India granted Special Status to Delhi among Union Territories (UTs) in the year 1991 through 69th constitutional amendment.
- It provided a Legislative Assembly and a Council of Ministers responsible to such Assembly with appropriate powers.
- That’s when Delhi was named as National Capital Region (NCT) of Delhi.
- As per this article – Public Order, Police & Land in NCT of Delhi fall within the domain and control of Central Government which shall have the power to make laws on these matters.
- For remaining matters of State List or Concurrent List, in so far as any such matter is applicable to UTs, the Legislative Assembly shall have the power to make laws for NCT of Delhi.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rohingya crisis
Mains level: Paper 2- Factors to consider while dealing with the situation in Myanmar
The article discusses the five lessons from past experiences as the international community frames its response to the military coup in Myanmar.
Coup in Myanmar
- After Aung San Suu Kyi’s National League for Democracy (NLD) swept the polls by winning almost 80% of the vote, Myanmar’s military staged a coup and declared a state of Emergency for a year.
- Myanmar, which started a fragile transition to democracy 10 years ago after decades of brutal military dictatorship, is back in the hands of the Generals.
Lessons for the international community
1) Benefits of sanctions
- The developments in Myanmar will invariably bring back the old debate around the prudence of sanctions.
- Notwithstanding the western sanctions before 2010 [during military rule], China, Thailand and Singapore were the key trading partners of Myanmar.
- The present reality is no different.
- Singapore was reportedly the largest foreign investor in Myanmar in 2020, accounting for 34% of the overall approved investment.
- Given that the military has been able to economically withstand sanctions by striking deals with Asian countries in the past, sanctions are unlikely to bring any major political change.
2) Accountability for crime against humanity
- As political changes got underway in 2010, many generals were on the radar of the international community for perpetuating a regime of human rights abuses, quietly vanished from the scene.
- This bred a culture of impunity.
- During the 2017 Rohingya crisis, senior military officials brazenly exploited social media to mobilise public support for brutality against Rohingyas.
3) China’s influence
- Three, a critical international player in Myanmar is China.
- The international community, particularly the West, has to factor in China’s multi-layered influence on Myanmar.
4) Revival of past international mechanisms
- Many international mechanisms comprising Western and Asian countries that were formed to coordinate strategies on Myanmar were disbanded after the 2015 election.
- That the changes in Myanmar were irreversible was the standard thinking.
- Relevant actors should be brought on a common platform by reviving past mechanisms.
5) Increasing the engagement with domestic stakeholders
- The expectation that Myanmar will see a nationwide protest against the military after the coup should be examined with the geographical extent of Bamar, Myanmar’s largest ethnic group, who support the National League for Democracy.
- The minorities in the country form around 35% of the population.
- In the current scenario, the military will continue to exploit ethnic and religious fault lines.
- Engagement with domestic stakeholders, including ethnic minorities, especially from the north, should be pursued by the international community.
Consider the question “As military hinders Myanmar’s transition to democracy, what are the factors that should be considered by the international community as it form the response to the situation in the country.”
Conclusion
There is one consistent lesson, that no change is irreversible, particularly in a context where military leadership scripted the meaning of democracy, and domestic forces and geopolitics continuously fail to deter its actions and impulses to rule.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PMMVY
Mains level: Maternity healthcare
The government’s maternity benefit scheme, or Pradhan Mantri Matru Vandana Yojana, has crossed 1.75 crores, eligible women, till the financial year 2020, the Centre informed Parliament.
PMMVY
- The PMMVY is a maternity benefit program introduced in 2017 and is implemented by the Ministry of Women and Child Development.
- It is a conditional cash transfer scheme for pregnant and lactating women of 19 years of age or above for the first live birth.
- It provides partial wage compensation to women for wage-loss during childbirth and childcare and to provide conditions for safe delivery and good nutrition and feeding practices.
- Under the scheme, pregnant women and lactating mothers receive ₹5,000 on the birth of their first child in three instalments, after fulfilling certain conditionalities.
- In 2013, the scheme was brought under the National Food Security Act, 2013 to implement the provision of cash maternity benefit stated in the Act.
- The direct benefit cash transfer is to help expectant mothers meet enhanced nutritional requirements as well as to partially compensate them for wage loss during their pregnancy.
Eligibility Conditions and Conditionalities
The first transfer (at pregnancy trimester) of ₹1,000 requires the mother to:
- Register pregnancy at the Anganwadi Centre (AWC) whenever she comes to know about her conception
- Attend at least one prenatal care session and taking Iron-folic acid tablets and TT1 (tetanus toxoid injection), and
- Attend at least one counselling session at the AWC or healthcare centre.
The second transfer (six months of conception) of ₹2,000 requires the mother to:
- Attend at least one prenatal care session and TT2
The third transfer (three and a half months after delivery) of ₹2,000 requires the mother to:
- Register the birth
- Immunize the child with OPV and BCG at birth, at six weeks and at 10 weeks
- Attend at least two growth monitoring sessions within three months of delivery
Additionally, the scheme requires the mother to:
- Exclusively breastfeed for six months and introduce complementary feeding as certified by the mother
- Immunize the child with OPV and DPT
- Attend at least two counselling sessions on growth monitoring and infant and child nutrition and feeding between the third and sixth months after delivery
Before judging this factual information, take this PYQ form 2019:
Q.Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?
- Pregnant women are entitled to three months pre-delivery and three months post-delivery paid leave.
- Enterprises with creches must allow the mother a minimum of six crèche visits daily.
- Women with two children get reduced entitlements.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Square Kilometre Array Observatory, Radio Telescopes
Mains level: Not Much
The Square Kilometre Array Observatory (SKAO) Council held its maiden meeting and approved the establishment of the world’s largest radio telescope.
Note all important telescopes in news and their features. Some of them are – Thirty Meter Telescope, Giant Metrewave Radio Telescope, Spitzer, Chandra etc.
SKAO
- It is a new intergovernmental organisation dedicated to radio astronomy and is headquartered in the UK.
- At the moment, organisations from ten countries are a part of the SKAO.
- These include Australia, Canada, China, India, Italy, New Zealand, South Africa, Sweden, the Netherlands and the UK.
What are radio telescopes?
- Unlike optical telescopes, radio telescopes can detect invisible gas and, therefore, they can reveal areas of space that may be obscured by cosmic dust.
- Significantly, since the first radio signals were detected by physicist Karl Jansky in the 1930s, astronomers have used radio telescopes to detect radio waves emitted by different objects in the universe and explore it.
- According to NASA, the field of radio astronomy evolved after World War II and became one of the most important tools for making astronomical observations since.
The Arecibo telescope in Puerto Rico, which was the second-largest single-dish radio telescope in the world, collapsed in December 2020.
Significance of SKA telescope
- The telescope, proposed to be the largest radio telescope in the world, will be located in Africa and Australia whose operation, maintenance and construction will be overseen by SKAO.
- Some of the questions that scientists hope to address using this telescope include the beginning of the universe, how and when the first stars were born and the life-cycle of a galaxy.
- It would explore the possibility of detecting technologically-active civilizations elsewhere in our galaxy and understanding where gravitational waves come from.
- As per NASA, the telescope will accomplish its scientific goals by measuring neutral hydrogen over cosmic time, accurately timing the signals from pulsars in the Milky Way.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Alternate Mobility Solutions (AMS)
The Ministry of Road Transport and Highways will, from now on, also look after the development of Ropeways and Alternate Mobility Solutions (AMS).
Q.With growing mobility and diverse terrain across the country, it is imperative that all solutions be enabled and implemented. In this light, discuss various changes adopted by the Transport Ministry in this regard.
Ropeways
- A ropeway is a form of naval lifting device used to transport light stores and equipment across rivers or ravines.
- It comprises a jackstay, slung between two sheers one at either end, from which is suspended a block and tackle, that is free to travel along the rope and hauled back and forth by inhauls.
- An amendment to the Government of India (Allocation of Business) Rules, 1961 has been notified, to enable this step.
Impacts of the move
- The move is expected to give a boost to the sector, by setting up a regulatory regime and facilitating research and new technology to come into this sector.
- This means that the Ministry will have responsibility for the development of ropeway and alternative mobility solutions technology, as well as construction, research, and policy in this area.
- Formulation of the institutional, financial, and regulatory framework for the technology will also fall under the ambit of this move.
Expected benefits
- Last-mile connectivity for remote locations
- Reducing congestion on mainstream roads
- Chance to develop world-class ropeway infrastructure
- Setting up of an organised and dedicated rope-way and alternative mobility solutions industry
- New technology, like CPT – Cable Propelled Transit coming to the sector
- Setting safety norms for unregulated ropeways
- Allowing freight and goods at remote stations
- Regulating tariffs structure for the technology
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Monpa Handmade Paper
Mains level: Not Much
PC: East Mojo
The sale of the 1000-years old heritage Monpa handmade paper or “Mon Shugu” is quickly catching pace after a special mention by PM in his Mann ki Baat.
Monpa Handmade Paper
- Monpa paper is made from the bark of tree Shugu Sheng grown locally in Tawang and is identified by its distinctive translucent fibrous texture.
- The paper is weightless but its natural fibres add great tensile strength to this paper making it apt for various artworks.
- It has been used for writing Buddhist scriptures, manuscripts and for making prayer flags.
- Writing on this paper is also known to be tamper-proof.
Note: This paper is yet to be awarded the Geographical Indication (GI) tag.
Revitalized by KVIC
- Khadi and Village Industries Commission, which revived this ancient art at Tawang in Arunachal Pradesh on 25th December 2020.
- It has made Monpa Handmade paper available online through its e-portal.
- The revival of this art assumes significance as Monpa Handmade paper was once produced in every household in Tawang and the paper was exported to many countries like Tibet, Bhutan, Myanmar and Japan among others.
- However, with the new technologies coming in, the handmade paper industry almost disappeared in the last 100 years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: KAPILA program
Mains level: Patenting solutions in India
The Government has launched a campaign namely KAPILA for Intellectual Property Literacy and creating patent awareness, informed Union Ministry for Education to the Parliament.
Remember one thing, ‘KAPILA’ Program is related to IP awareness. It sounds much like an animal husbandry related initiative.
KAPILA Initiative
- 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.
Why in news?
- As many as 46,556 users have registered for the Union Government’s Intellectual Property Literary project.
- This marks the success of the campaign.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: COVAX project
Mains level: Paper 2- Vaccine nationalism
India has been supplying vaccines to other countries even as its first phase of vaccination covers the health care workers. At the same time, the selfishness of the advanced countries has been on full display by amassing the approved vaccines. The article deals with the issue of vaccine nationalism.
What is vaccine nationalism
- When a country manages to secure doses of vaccines for its own citizens or residents and prioritises its own domestic markets before they are made available in other countries it is known as ‘vaccine nationalism’.
- This is done through pre-purchase agreements between a government and a vaccine manufacturer.
- The advance purchase contracts made by some advanced countries for potential vaccines would vaccinate their population many times: the European Union, two times, the United States and the United Kingdom, four times, and Canada, six times.
Impact on the SDGs
- The reversal of progress on many Sustainable Development Goals, or SDGs, such as SDG 3 (“Ensure healthy lives and promote well-being for all at all ages) could affect the health of the world population, and global growth itself.
- Even before COVID-19, projections have shown that 6% of the global population would be in extreme poverty, which has gone up by 71 million, thereby causing enormous challenges to SDG 1 (“End poverty in all its forms everywhere”).
- According to estimates by the International Monetary Fund, over 50% of emerging markets and developing economies that were converging toward advanced economies per capita income over the last decade are expected to diverge over the 2020-22 period.
India’s important role
- While advanced countries have turned their back on the need of poor countries, India has taken a position that a significant percentage of the approved doses will be permitted for exports.
- While its exports to neighbouring counties will be under grant mode, initial shipment of vaccines to least developed countries will be free of cost.
- Brazil has received 2 million doses of vaccine from India (as of January 23).
- While India is in its first phase of vaccination to cover health-care workers, exports from India are helping other countries also in initiating phase one of their vaccination programme — a gesture well-appreciated globally.
- The ability to produce large volumes of vaccine at an affordable cost underlines India’s importance to developing countries when it comes to drug access.
Need for coordinated global efforts
- Due to the vaccine nationalism, the arguments of public good and global cooperation have been widely neglected.
- Nevertheless, India’s approach only reinforces the need of having coordinated global efforts in bringing COVID-19 under control.
- This response manifests India’s unstinted commitment to global development and has consolidated its name as the world’s pharmacy.
COVAX Project: Unique case of global cooperation
- The COVAX project is a global risk-sharing mechanism for pooled procurement and fair distribution of COVID-19 vaccines.
- It is based on funding from high and middle-income countries.
- Since high and middle-income countries are buying up large amounts of the vaccine directly from suppliers, the promise by COVAX to deliver 2 billion doses by the end of 2021 seems to face new challenges.
- Since most of the vaccines are purchased from the global south [specifically, India and China] for developing nations, the COVAX project can draw new pathways for global development.
- Most of these vaccines are cost-effective and affordable to the global south.
Consider the question “What is vaccine nationalism? Examine the role played by India against the backdrop of vaccine nationalism.”
Conclusion
The development of vaccines is a classic story of global cooperation between the North and the South. Unfortunately, the increasing nationalist tendencies of the democratic World during the pandemic have challenged the positive narrative on global cooperation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Incremental Capital output ratio
Mains level: Paper 3- Highlights of the Budget 2021-22
The article analyses the key features of the Union Budget, including the increase in overall expenditure and jump in capital expenditure in FY22.
Explaining the Rs 4.1 lakh crore jump in expenditure in FY21
- The budget has moved clearly from off-balance-sheet funding [borrowing by FCI and arrears of fertiliser subsidy] to headline-deficit funding.
- That possibly explains the surge in fiscal deficit in the current fiscal at 9.5 per cent of GDP.
- However, by excluding such off-balance-sheet funding, the headline-fiscal deficit declines to 8.6 per cent of GDP.
- A closer look at the food subsidy, juxtaposed with outstanding FCI liabilities shows that Rs 1.2 lakh crore (0.6 per cent of the GDP) is a pure accounting shift, while the rest Rs 1.9 lakh crore is new spending this fiscal.
- Hence, the incremental spending in FY21 comes to around Rs 2.9 lakh crore (net of Rs 1.2 lakh crore/ 1.5 per cent of the GDP).
- Interestingly, the government has also spent an additional Rs 62,638 crore on fertiliser subsidy, the entire amount of which has been front-loaded.
Focus on capital expenditure in FY22
- Increase in the expenditure in FY22 is noticeable as the pie has decisively shifted towards capital expenditure.
- The budgeted raise in FY22 is 4.6 times larger than the trend increase in the last two decades.
- The proposed capital expenditure amounts to 3.4 per cent of the GDP if we also include allocation for capital expenditure for autonomous bodies.
- Assuming an Incremental Capital Output Ratio (ICOR) of 4.5, one can expect a GDP growth contribution of 0.8 per cent on account of the capital expenditure.
- The other number in the budget that deserves admiration is the significant decline in extra budgetary resources of the government and PSUs. All this augurs well even for rating agencies if we go by purely fiscal transparency as a rule.
Steps to clean up NPAs in the banking sector
- The most notable development in the financial system is announcement of setting up an Asset Reconstruction Company (ARC) and an Asset Management Company (AMC).
- The approach is to set up an AMC, which in partnership with an ARC, takes over large stressed assets ( approximately Rs 3.5 lakh crore) spread across multiple banks that have a clear potential for turnaround.
- An operational turnaround of the asset creates value for the overall system.
- The AMC/AIF-led approach could enable a move towards true price discovery, consolidating debt into one single entity ensuring faster decision-making, freeing up blocked capital/funds and an operational turnaround of assets.
- A better price discovery could be ensured by having an independent investment committee comprising of senior management professionals.
Increase in FDI limit in insurance sector
- The Union budget also has a proposal to increase the FDI limit in insurance companies to 74 per cent from the present 49 per cent, with Indian management control.
- It is expected that fresh capital will bring a new wave in technical know-how, innovation, and new products to the advantage of consumers, pushing up insurance penetration in the country.
- However, we must ensure that foreign investors become interested in the Indian insurance sector as the current FDI used limit is at 33.8 per cent in private insurers.
Role of RBI
- With the government set for a fiscal push, the baton has passed to the RBI.
- Overall, monetary and fiscal policies need ideal co-ordination for macroeconomic management.
- If the central bank pursues its monetary objectives by not accommodating debt financing in its strategy, the macroeconomic outcome may be worse for both the fiscal and monetary authorities, as well as for the economy.
- Fortunately, the RBI and government have worked in perfect harmony during the pandemic.
- As it continues, we can have a stable interest rate regime which will be rewarding for all, particularly the government.
Conclusion
The Union Budget for FY22 is a budget to consolidate (C), spend (S) and revive (R) and shows that the government is set for fiscal push. Now, the baton has passed to the RBI.
Back2Basics: What Is the Incremental Capital Output Ratio (ICOR)?
- The incremental capital output ratio (ICOR) is a frequently used tool that explains the relationship between the level of investment made in the economy and the consequent increase in the gross domestic product (GDP).
- ICOR indicates the additional unit of capital or investment needed to produce an additional unit of output.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Iran Nuclear Deal
Mains level: Irritants in the deal and threats posed by Iran's nuclear programme
Iranian President Hassan Rouhani ruled out changes to Iran’s nuclear accord with world powers and dismissed calls to broaden the terms of the deal and include regional countries.
Do you know how the enmity between Iran and the US came into reality? We hope you have watched the Argo (2012) movie for sure!
What is the news?
- The election of Joe Biden, who supports a US return to the agreement, has spurred some expectations of renewed diplomacy.
- But Rouhani’s refusal puts this possibility at the end.
The United States since 1979 has applied various economic, trades, scientific and military sanctions against Iran. U.S. economic sanctions are administered by the Office of Foreign Assets Control.
Iranian Nuclear Agreement
- The Iran nuclear agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), is a landmark accord reached between Iran and several world powers, including the US, in July 2015.
- Under its terms, Iran agreed to dismantle much of its nuclear program and open its facilities to more extensive international inspections in exchange for billions of dollars’ worth of sanctions relief.
What were the goals of JCPOA?
- The P5+1 wanted to unwind Iran’s nuclear program to the point that if Tehran decided to pursue a nuclear weapon, it would take at least one year, giving world powers time to respond.
- Heading into the JCPOA negotiations, U.S. intelligence officials estimated that, in the absence of an agreement, Iran could produce enough nuclear material for a weapon in a few months.
Who are the participants?
- The JCPOA, which went into effect in January 2016, imposes restrictions on Iran’s civilian nuclear enrichment program.
- At the heart of negotiations with Iran were the five permanent members of the UN Security Council (China, France, Russia, the UK, and the US) and Germany—collectively known as the P5+1.
- The European Union also took part.
- Prior to the JCPOA, the P5+1 had been negotiating with Iran for years, offering its government various incentives to halt uranium enrichment.
Disruptions after trump
- The deal has been in jeopardy since President Donald J. Trump withdrew the US from it in 2018.
- In response to the U.S. departure, as well as to deadly attacks on prominent Iranians in 2020, including one by the United States, Iran has resumed some of its nuclear activities.
Why isn’t the deal yet enforced?
- In April 2020, the United States announced its intention to keep back sanctions.
- The other P5 members objected to the move, saying the US could not unilaterally implement the mechanism because it left the nuclear deal in 2018.
- Meanwhile, the wide range of U.S. sanctions unrelated to the nuclear program has added to the damage.
Iran’s current nuclear activity
- Iran since Trump’s decisions started exceeding agreed-upon limits to its stockpile of low-enriched uranium.
- It began enriching uranium to higher concentrations (though still far short of the purity required for weapons).
- It also began developing new centrifuges to accelerate uranium enrichment; resuming heavy water production at its Arak facility.
Did you know?
Mined uranium has less than 1 percent of the uranium-235 isotope used in fission reactions, and centrifuges increase that isotope’s concentration. Uranium enriched to 5 percent is used in nuclear power plants, and at 20 percent it can be used in research reactors or for medical purposes. High-enriched uranium, at some 90 percent, is used in nuclear weapons.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Smart fencing
Mains level: Border security of India
The new US President has stopped the construction of the much-publicized “border wall” between the U.S. and Mexico.
Q.Smart fencing along with physical fencing can protect major infiltration areas of Indian borders. Analyse its feasibility for India.
What is the news?
- The Mexico–US barrier also known as the border wall is a series of vertical barriers along the border intended to reduce illegal immigration to the US.
- Biden’s decision was confirmed, however, that an alternative has been offered — a ‘smart’ wall that replaces the physical and armed patrolling with advanced surveillance tech is the proposed future of border security now.
What is the Smart Wall?
- The ‘smart wall’ technology could solve border security issues without the need for a physical barrier.
- The wall would use sensors, radars, and surveillance technology to detect and track border break-ins, and technology capable of performing the most difficult tasks dedicated to border security.
- The complete system of a virtual wall would consist of a radar satellite, computer-equipped border-control vehicles, control sensors and underground sensors.
- Along with surveillance towers and cameras, thermal imaging would be used, which would help in the detection of objects.
- The system would even be capable of distinguishing between animals, humans, and vehicles, and then sending updates to handheld mobile devices of the patrol agents.
Not a new concept
- The concept is not new and the novelty of it cannot be directly associated with Biden.
- Interestingly, the U.S.-Mexico border wall proposed by Donald Trump envisaged this concept.
- A technology firm was sought to be hired by the Trump administration, and it was indicated that artificial intelligence shall be used at a novel scale to complement the steel barrier (border wall).
Feasibility for India
- A question that now arises is whether such a project can be undertaken to secure Indian borders.
- India has been struggling with the problem of terrorists and smugglers infiltrating into the country and efforts are ongoing to secure our borders and curb cross-border infiltration.
- Therefore, it is proposed that it is high time we start envisaging the use of technology to help India secure its borders.
Various challenges
- A critical factor that must be considered to enable the usage of such a system along Indian borders is that the terrain in the region is rugged, and, furthermore, not even clearly defined.
- Hence, erecting fences, walls or any physical structures is extremely difficult.
- A “smart” wall, however, makes use of systems that would be designed in such a way that they can operate even in rugged areas.
- Imperatively, in the US various other benefits, such as cost-effectiveness, less damage to the environment, fewer land seizures, and speedier deployment are being noted.
- This gives the concept an edge over traditional borders.
Benefits that Indian can reap
- Notably, such a system, even if not feasible for our long boundaries, may still be deployed to enhance critical security establishments of the country and complement the already-existing physical fencing and walls.
- This can no doubt secure the major infiltration areas.
Way forward
- The attack on the Pathankot Airbase highlighted that often, it may become difficult to secure establishments due to their vast size.
- Further, it is imperative for Indian armed forces to be well-equipped and simultaneously have the latest technological advantage over its enemies.
- Experts must explore this idea to effectively counter the problem of cross-border infiltration.
- Is it unfathomable to deploy a security system that clubs technology with traditional set-ups due to terrain and other problematic factors? This is a question for Digital India to answer.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cryptocurrency, Blockchain technology
Mains level: Digital Currency
With the likely scenario of India’s government banning private cryptocurrencies, the Reserve Bank of India (RBI) is planning to introduce an official digital currency for the country.
What is the news?
- An earlier government bill on cryptocurrency in 2019 reportedly sought to ban cryptocurrency and criminalise its possession in India. However, it was not introduced in Parliament.
- The detailed text of the bill has not been released in the public domain so far.
- The bill also says that there will be a regulation to help RBI create its own CBDC (central bank digital currency).
What are Cryptocurrencies?
- A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database.
- It uses strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
- It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.
- Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.
Hues over the Bill
- The past year has seen a surge in the number of cryptocurrency investors in India and in trading volumes.
- Cryptocurrency exchanges such as CoinDCX and Coinswitch Kuber have also raised early-stage funding for their operations.
- The bill may spark an end to the nascent cryptocurrency industry in the country.
What were the provisions of 2019 Bill?
Definition of cryptocurrencies:
- The 2019 Bill defined cryptocurrency as any information, code, number or token, generated through cryptographic means or otherwise, which has a digital representation of value and has utility in business activity, or acts as a store of value or a unit of account.
Ban:
- The 2019 Bill bans the use of cryptocurrency as legal tender or currency.
- It also prohibits mining, buying, holding, selling, dealing in, issuance, disposal or use of cryptocurrency.
- Mining is an activity aimed at creating a cryptocurrency and/or validating cryptocurrency transactions between a buyer and a seller.
In particular, the use of cryptocurrency was prohibited for:
- use as a medium of exchange, store of value or unit of account,
- use as a payment system,
- providing services such as registering, trading, selling or clearing of cryptocurrency to individuals,
- trading it with other currencies,
- issuing financial products related to it,
- using it as a basis of credit,
- issuing it as a means of raising funds, and
- issuing it as a means for investment.
Why the govt wants to ban cryptocurrencies?
Sovereign guarantee
- Cryptocurrencies pose risks to consumers. They do not have any sovereign guarantee and hence are not legal tender.
Market volatility
- Their speculative nature also makes them highly volatile. For instance, the value of Bitcoin fell from USD 20,000 in December 2017 to USD 3,800 in November 2018.
Risk in security
- A user loses access to their cryptocurrency if they lose their private key (unlike traditional digital banking accounts, this password cannot be reset).
Malware threats
- In some cases, these private keys are stored by technical service providers (cryptocurrency exchanges or wallets), which are prone to malware or hacking.
Money laundering
- Cryptocurrencies are more vulnerable to criminal activity and money laundering. They provide greater anonymity than other payment methods since the public keys engaging in a transaction cannot be directly linked to an individual.
Regulatory bypass
- A central bank cannot regulate the supply of cryptocurrencies in the economy. This could pose a risk to the financial stability of the country if their use becomes widespread.
Power consumption
- Since validating transactions is energy-intensive, it may have adverse consequences for the country’s energy security (the total electricity use of bitcoin mining, in 2018, was equivalent to that of mid-sized economies such as Switzerland).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 328
Mains level: EVM issues
Maharashtra Assembly Speaker has directed the State Law and Justice Department to prepare the draft of a Bill which provides an option to voters to exercise their franchise on ballot papers along with electronic voting machines (EVMs).
Manner of holding elections
- Article 328 of the Indian Constitution and number 37 of the State List of the seventh schedule of the Constitution provide rights to the State legislature to formulate a law on the manner of holding elections within the State.
- The state cannot abolish the EVMs completely.
- They are just demanding an additional provision of ballot paper as well for whoever wants to use that.
- Directions have been given to check the constitutional validity of the argument and prepare the draft of a Bill.
Background
- The Election Commission has been conducting all elections through EVMs since 2001.
- The Indian EVM is a direct recording device, which is a stand-alone machine.
- The Election Commission has clarified several times that Indian EVMs don’t talk to any machine outside its own system – be it through a wired network, internet, satellite, and WiFi or Bluetooth.
- The EVM is not connected to the server, so cyber hacking of Indian EVMs is not possible unless an authorised person acts with malafide intention.
- In 2014, a whopping 55.38 crore people cast their votes in EVMs in the parliamentary elections.
Considerations behind such a move
- On EVMs, a voter can never be 100% sure about whom he or she has voted and whether that particular candidate has received the vote.
- It is a right of every voter to be 100% sure about it and also essential for the democratic process.”
- Over the past few years, serious concerns and doubts had been raised over the EVMs and whether those could be manipulated.
- The option of ballot voting would boost people’s confidence in the electoral process which would ultimately lead to an increase in voting percentage.
Q.The EC’s role in ensuring the people’s faith in democracy is paramount. The loss of public faith in democracy and its protector institutions spells nothing but disaster. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Yuddh Abhyas
Mains level: NA
The 16th edition of Indo-U.S. joint military exercise ‘Yudh Abhyas’ is set to be held in Rajasthan between February 8 and 21.
Yudh Abhyas
- The exercise near the India-Pakistan border aims at enhancing cooperation and interoperability between the two armies and will focus on counter-terrorism operations under the UN mandate.
- The drill comes days after the air forces of India and France held a five-day joint exercise in Rajasthan in January.
- Exercise with U.S. Army is significant in terms of security challenges faced by both the nations in the backdrop of global terrorism.
- The joint military exercise will enhance the level of defence cooperation between both armies which will also foster the bilateral relations between both nations.
- It reiterates India’s key role as a key partner in the Indo-Pacific region.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MSP
Mains level: Paper 3- Budget 2021-22 and missed opportunities
The article highlights the areas of economy for which the allocation in the Budget has either been kept unchanged or reduced, signaling the missed opportunity to revive the economy.
Including the off-budget items
- An important feature of the Budget is the transparency on including the off-budget items.
- The step will result in cleaning up of the balance-sheet of the Food Corporation of India (FCI).
- The FCI was saddled with a debt of Rs 3.75 lakh crore by the end of December 2020, a significant part of which is now paid by the government.
- So is the case of the fertiliser subsidy for which the pending Rs 65,000 crore was cleared.
What was the increase in expenditure due to pandemic
- The total expenditure of the government in 2020-21 hardly increased compared to the pre-pandemic budget estimates (BE).
- The total increase in revised estimates (RE) for 2020-21 is only Rs 33,000 crore, around 1 per cent more than what was budgeted.
- The government did raise the expenditure on food subsidy, direct benefit transfer to Jan Dhan accounts (Rs 33,000 crore) and the increase in the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) (Rs 50,000 crore) and so on.
- But it did so not by generating resources and expanding the fiscal deficit but by cutting down essential expenditure such as agriculture (Rs 18,000 crore), education (Rs 14,000 crore) and social welfare (Rs 14,000 crore).
No increase in health budget
- The Budget announced increase in the health budget to Rs 2.23 lakh crore.
- This number was achieved by adding one-time expenditures on the vaccine, Finance Commission grants and inclusion of expenditure on drinking water, sanitation and nutrition.
- However, the budget of the health ministry for 2021-21 is lower at Rs 74,602 crore compared to the revised estimates of Rs 82,445 crore for the current year.
No increase in agriculture budget
- Like in many other essential ministries, the agriculture ministry also witnessed a cut with estimates of 2021-22 lower by Rs 11,000 crore than last year.
- Real investment in agriculture has been lower than 2013-14 for every year of this government.
Lack of attention on employment generation in rural area
- The lifeline provided by expenditure in rural areas on infrastructure creation and employment generation has either seen a decline in budgeted expenditure or remained stagnant.
- The budget for the ministry of rural development is lower by Rs 66,000 crore compared to the RE of last year.
- The MGNREGA budget of Rs 73,000 crore is barely enough to cover the increase in wages by 11 per cent announced in March.
- It is only 1.8 per cent higher than the actual expenditure of 2019-20, but 52 per cent lower than the RE of last year.
- Similarly, for the Pradhan Mantri Gram Sadak Yojna (PMGSY), the budget for 2021-22 has been cut by Rs 4,500 crore, not even enough to cover inflation between the two years.
Consider the question “The Budget 2021-22 has been hailed for bringing in more transparency to the budgeting exerciese? Examine the context for this, how it will benefit the country?”
Conclusion
Estimates for next year point to missed opportunities to use fiscal measures to revive the ailing economy. Unlike the pandemic, where the arrival of vaccines has given hope, the ailing economy needs much more than this budget.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Interest Rate-Growth Differential
Mains level: Paper 3- Departure from fiscal conservatism
A whopping fiscal deficit at 9.5% of GDP for FY21 highlights departure of India’s fiscal policy from the path of fiscal consolidation. The article highlights the issues related to such departure.
Important departure
- With its fiscal deficit at 9.5% of GDP for FY21 and 6.8% in FY22 Budget for 2021-22 seems to signal “spend like there is no tomorrow”.
- For well over a decade-and-a-half, we have tried attaining deficit targets set out in the Fiscal Responsibility and Budget Management (FRBM) Act (2003).
- In this Budget, target of FRBM Act has not been adhered to.
- The Budget thus marks an important departure from one of the key tenets of the Washington Consensus that was based on macroeconomic stability.
- In previous years, Medium Term Fiscal Policy cum Fiscal Strategy Statement would give the indicators for the past two years as well as the projections for the next two years.
- In this year’s Budget, the yearly projections are missing.
- The Finance Minister has promised to introduce an amendment to the FRBM Act to formalise the new targets.
The theoretical basis for departure
- The Economic Survey laid the groundwork for a departure from rigid adherence to fiscal consolidation.
- It has a quote from economist Olivier Blanchard, “If the interest rate paid by the government is less than the growth rate (IRGD), then the intertemporal budget constraint facing the government no longer binds.”
- The “intertemporal budget constraint” means that any debt outstanding today must be offset by future primary surpluses.
- The Survey argues that in India, the growth rate is higher than the interest rate most of the time.
- The Survey says that, in the current situation, expansionary fiscal policy will boost growth and cause debt to GDP ratios to be lower, not higher.
Key concerns
- An important factor for adhering to the fiscal constraint in the past was the fear that the rating agencies would downgrade India if total public debt crossed, say, 10%-11% of GDP.
- That is a risk that cannot be wished away unless the rating agencies have decided to toe the IMF-World Bank line on fiscal deficits.
- Another concern is that a large fiscal deficit can fuel a rise in inflation.
- A third concern is that, with the tax to GDP ratio not rising as expected, the sale of public assets has become crucial to reduction in fiscal deficits in the years ahead. This is a high-risk strategy.
- A large-scale privatisation almost always involves substantial FDI.
- In South East Asia and Eastern Europe, privatisation of banks meant a large rise in foreign presence in the domestic economies.
Consider the question “The Budget 2021-22 is characterised by its departure from the path of fiscal consolidation. Examine the theoretical basis for such departure. What are the key concerns?”
Conclusion
If the nation’s political economy came in the way of our meeting the FRBM targets, it is also likely to pose an obstacle to large-scale privatisation. A departure from fiscal orthodoxy is welcome. But the government needs to think of ways to make it more sustainable.
Back2Basics: Interest Rate Growth Differential
-
- A key indicator of an economy’s long-run debt sustainability is the differential between interest paid on government debt and the economy’s nominal growth rate.
- When the cost of raising debt is lower than the gross domestic product (GDP) growth rate, public debt comes with low fiscal costs.
- In such a situation, the debt-to-GDP ratio of the economy declines as debts are rolled over.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various ports of Sri Lanka
Mains level: China as deterrent in India's neighbourhood policy
After the strong opposition from within, the Sri Lankan government was forced to revoke a 2019 agreement with India and Japan to develop the strategic East Container Terminal (ECT) at the Colombo Port.
Map Reading: Note all these major ports and try recalling their sequences in the clockwise and counter-clockwise direction.
What is the news?
- PM Mahinda Rajapaksa made a statement that the operation of the east terminal would be done by Sri Lanka Ports Authority on its own.
- Its cabinet has approved a proposal to develop the West Terminal at the Colombo Port as a PPP with India and Japan, which is seen as a bid to compensate India.
- It is unclear whether India would accept the latest proposal.
What is the Project?
- The tripartite agreement, signed by India, Sri Lanka and Japan, proposes to develop the ECT, which is located at the newly expanded southern part of the Colombo Port.
- The ECT is located 3 km away from the China-backed international financial city, known as Port City, currently being built in Colombo.
- A Chinese company was behind the controversial 2018 Hambantota port project, signed its first contract in the Port City last month.
- It is also on the map of China’s Belt and Road Initiative (BRI).
India’s reaction
- A few weeks ago EAM S. Jaishankar visited Sri Lanka where he discussed the development of the stalled project.
- India’s first response was that the island nation should not be taking a decision in a unilateral manner on an existing tripartite agreement.
Compensatory offer to India
- After the decision on revoking the 2019 agreement, SL has approved another proposal to develop the west terminal of the Colombo port with Japan and India.
- Commercially, the west terminal offer is better for India as it gives 85% stake for developers of the West Terminal against the 49% in ECT.
Sri Lanka expects India to rethink. Why?
- Indian response to this compensatory offer is unclear since there was no formal communication by SL authorities.
- Geo-politically, west terminal is almost the same India considers the security aspect and the necessity to have a port terminal in Sri Lanka.
- There is no difference between East and West Terminals except for the fact that development of the ECT is partially completed while the development of the West Terminal has to start from scratch.
SL version of the revocation
- Incumbent PM Mahinda Rajapaksa said the pressure was immense on the President Gotabaya Rajapaksa to cancel the 2019 agreement.
- The pressure was brewing so much that he was becoming so unpopular among the people.
- As per the agreement signed by the former Maithripala Sirisena-Ranil Wickremesinghe administration, India and Japan together were to hold 49% stake in ECT.
- What had finally made the government surrender before trade unions were the increasing support of many more sections in the society for the protests against privatization.
The inevitable factor: China
- This move can be easily interpreted as a reaction to Chinese communication to Sri Lanka.
- China has reportedly instigated trade unions and civil societies against this project.
Q.The threat of Chinese presence in South Asia can be tackled more effectively if India changes course in its dealings with its neighbours and becomes more sensitive to their concerns. Critically analyse.
Outcome: Souring of the ties
- For India, the strategic ECT project was important. Even the EAM has visited Colombo in January in this regard.
- Critics of the Sri Lankan government anticipate many national and international impacts surrounding the latest decision on ECT.
- Meantime, internationally an offended India can make life tough for Sri Lanka, isolating the tiny island nation, geo-politically and on the economic front.
- The economic isolation will not help Sri Lanka at a time when the country is taking steps to revive the economy amid a pandemic.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India Justice Report
Mains level: State of justice delivery, law and order in India
The second edition of the Indian Justice Report (IJR) was recently launched.
Note the findings of this report. It is the only such report of its kind published in India.
India Justice Report
- The IJR is an initiative of Tata Trusts in collaboration with Centre for Social Justice, Common Cause and Commonwealth Human Rights Initiative among others.
- It was first published in 2019.
- It brings together otherwise siloed statistics from authoritative government sources, on the four pillars of justice delivery – Police, Judiciary, Prisons and Legal Aid.
Major highlights of the Report
- The report highlights stark conclusions when aggregated for an all-India picture.
- Women comprise only 29 per cent of judges in India.
- Two-thirds of the country’s prisoners are yet to be convicted.
- In the last 25 years, since 1995, only 1.5 crore people have received legal aid, though 80 per cent of the country’s population is entitled to.
- The report gives ranks Maharashtra once again at the top of the 18 large- and mid-sized states (with a population of over one crore each), followed by Tamil Nadu, Telangana, Punjab and Kerala.
- The list of seven small states (population of less than one crore each) was topped by Tripura, followed by Sikkim and Goa.
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