Note4Students
From UPSC perspective, the following things are important :
Prelims level: Oil Bonds
Mains level: Oil prices volatility and its impact on India
The Centre has argued that it cannot reduce taxes on petrol and diesel as it has to bear the burden of payments in lieu of oil bonds issued by the previous UPA government to subsidize fuel prices.
What are Oil Bonds?
- Oil bonds are special securities issued by the government to oil marketing companies in lieu of cash subsidy.
- These bonds are typical of a long-term tenure like 15-20 years and oil companies are paid interest.
- Before the complete deregulation of petrol and diesel prices, oil marketing companies were faced with a huge financial burden as the selling price of petrol and diesel in India was lower than the international market price.
- This ‘under-recovery is typically compensated through fuel subsidies allocated in the Union budget.
- However, between 2005 and 2010, the UPA government issued oil bonds to the companies amounting to Rs 1.4 lakh crore to compensate them for these losses.
Why do governments issue such bonds?
- Compensation to companies through issuance of such bonds is typically used when the government is trying to delay the fiscal burden of such a payout to future years.
- Governments resort to such instruments when they are in danger of breaching the fiscal deficit target due to unforeseen circumstances that lead to a collapse in revenues or a surge in expenditure.
- These types of bonds are considered to be ‘below the line’ expenditure in the Union budget and do not have a bearing on that year’s fiscal deficit, but they do increase the government’s overall debt.
- However, interest payments and repayment of these bonds become a part of the fiscal deficit calculations in future years.
Backgrounder: Deregulation of fuel prices
- Fuel price decontrol has been a step-by-step exercise, with the government freeing up prices of aviation turbine fuel in 2002, petrol in 2010, and diesel in 2014.
- Prior to that, the government would intervene in fixing the price at which retailers were to sell diesel or petrol.
- This led to under-recoveries for oil marketing companies, which the government had to compensate for.
- The prices were deregulated to make them market-linked, unburden the government from subsidizing prices, and allow consumers to benefit from lower rates when global crude oil prices tumble.
- Price decontrol essentially offers fuel retailers such as Indian Oil, HPCL or BPCL the freedom to fix prices based on calculations of their own cost and profits.
- However, the key beneficiary in this policy reform of price decontrol is the government.
Impact: Loss of consumers
- While oil price deregulation was meant to be linked to global crude prices, Indian consumers have not benefited from a fall in global prices.
- The central, as well as state governments, impose fresh taxes and levies to raise extra revenues.
- This forces the consumer to either pay what she’s already paying, or even more.
Why are the Oil Bonds in news?
- As prices of petrol and diesel climb steeply, the Centre has been under pressure to cut the high taxes on fuel.
- Taxes account for 58 per cent of the retail selling price of petrol and 52 per cent of the retail selling price of diesel.
- However, the government has so far been reluctant to cut taxes as excise duties on petrol and diesel are a major source of revenue, especially at a time the pandemic has adversely impacted other taxes such as corporate tax.
- The government is estimated to have collected more than Rs 3 lakh crore from tax on petrol and diesel in the 2020-21 fiscal year.
The blame game
- The present government has blamed the UPA regime for its inability to cut taxes.
- It pointed out that the bonds issued by the Manmohan Singh government have weakened the financial position of the oil marketing companies and added to the government’s fiscal burden now.
- It is an argument that has been often repeated since 2018.
What budget documents show
- Budget documents show that such bonds will be up for redemption over the next few years — beginning with two to be redeemed in the current fiscal year — till 2026.
- The government has to repay a principal amount of Rs 10,000 crore this year, according to these documents.
- The government has paid around Rs 10,000 crore annually as interest over the last decade.
- The government is likely to pay a similar amount of interest for the current fiscal as well.
Is the issuance of such special securities restricted to the UPA era?
- Besides oil bonds, the UPA era also saw the issuance of fertilizer bonds from 2007 to compensate fertilizer companies for their losses due to the difference in the cost price and selling price.
- However, the issuance of such special securities is not limited to the UPA regime.
- Over the years, the Modi government has issued bank recapitalization bonds to specific public sector banks (PSBs) as it looked to meet the large capital requirements of these PSBs without allocating money from the budget.
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: NPA Crisis
The contentious issue of whether banks should disclose inspection reports by the Reserve Bank of India (RBI) is back in the news once again after a division bench of the Supreme Court referred writ petitions filed by banks to another bench for reconsideration.
What is RBI’s inspection on banks?
- The Banking Regulation Act, 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks.
- These powers are exercised through on-site inspection and off-site surveillance.
- RBI carries out dedicated and integrated supervision overall of credit institutions, i.e., banks, development financial institutions, and non-banking financial companies.
- The Board for Financial Supervision (BFS) carries out this function.
- Banks currently disclose the list of wilful defaulters and names of defaulters against whom they have filed suits for loan recovery.
Note: CAMELS is an international rating system used by regulatory banking authorities to rate financial institutions, according to the six factors represented by its acronym. The CAMELS acronym stands for “Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity.”
Why in news now?
- In 2015, the Supreme Court had come down on the RBI for trying to keep the inspection reports and defaulters list confidential.
- This was aimed for the public disclosure of such reports of the RBI, much against the wishes of the banking sector.
- The SC had said the RBI has no legal duty to maximize the benefit of any public sector or private sector bank, and thus there is no relationship of ‘trust’ between them.
- It added that the RBI was duty-bound to uphold the public interest by revealing these details under RTI.
What is the issue?
- The RBI was allowed to make such reports public following the Supreme Court order.
- The SC had wanted full disclosure of the inspection report.
- However, the court agreed that only some portions on bad loans and borrowers would be made public.
- Banks have been refusing to disclose inspection reports and defaulters’ lists.
Issues with report publication
- Bank defamation: As banks are involved in dealing in money, they fear any adverse remarks — especially from the regulator RBI — will affect their performance and keep customers away.
- Trust of the account holder: Banks are driven by the “trust and faith” of their clients that should not be made public.
- The invalidity of RTI: On the other hand, private banks insisted that the RTI Act does not apply to private banks.
- Right to Privacy: Banks also argued that privacy is a fundamental right, and therefore should not be violated by making clients’ information public.
Why are banks against disclosing inspection reports?
- Many feel that the RBI’s inspection reports on various banks, with details on alleged malpractices and mismanagement, can open up a can of worms.
- As these reports have details about how the banks were manipulated by rogue borrowers and officials, banks want to keep them under wraps.
- Obviously, banks don’t want inspection reports and defaulters’ lists to be made public as it affects their image.
- Customers may also keep out of banks with poor track records.
Try this PYQ now:
Q.In the context of the Indian economy non-financial debt includes which of the following?
- Housing loans owed by households
- Amounts outstanding on credit cards
- Treasury bills
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 1, 2 and 3
Post your answers here (You need to sign-in for that).
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: Financial Inclusion Index
Mains level: Financial inclusion of masses
The Reserve Bank of India (RBI) has announced the formation of a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country.
Financial Inclusion Index
- The FI-Index will be published in July every year.
- The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.
- It has been conceptualized as a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the government and respective sectoral regulators.
- It has been constructed without any ‘base year’ and as such it reflects cumulative efforts of all stakeholders over the years towards financial inclusion.
Parameters of the index
- The FI-Index comprises three broad parameters viz.,
- Access (35%),
- Usage (45%), and
- Quality (20%)
- These parameters are the identification of the customer, reaching the last mile, and providing relevant, affordable and safe products.
- The index is responsive to ease of access, availability and usage of services, and quality of services for all 97 indicators.
This year’s highlight
- The annual FI-Index for the period ended March 2021 stood at 53.9 compared with 43.4 for the period ended March 2017.
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: Bioethanol, Ethanol blending
Mains level: Ethanol blended petrol (EBP) Program
India has been promoting 2G bioethanol to achieve its E20 target.
What is Bioethanol?
- Biomass has always been a reliable source of energy.
- Cultivated biomass has begun to be used to generate bioethanol.
- They are categorised as first (1G), second (2G) and third-generation (3G), based on the source of raw material used for bioethanol production.
Its types
- 1G bioethanol: Raw materials required are corn seeds and sugarcane; both are food sources. There is not enough food for everyone; so the use of 1G is a major concern. However, some countries have enough raw materials to manufacture 1G.
- 2G bioethanol: It can be produced using inedible farm waste left over after harvest. Corn cobs, rice husks, wheat straw and sugarcane bagasse can all be transformed into cellulose and fermented into ethanol that can then be mixed with conventional fuels.
- 3G bioethanol: Algae grown in wastewater, sewage or saltwater can be used to produce bioethanol. Water used for human consumption is not required. The benefit of 3G is that it does not compete with food. Nevertheless, economic viability remains a critical issue.
Ethanol blending in India
- India currently blends approximately 8.5 per cent ethanol with petrol.
- It is estimated that ethanol production in India will triple to approximately 10 billion litres per year by 2025.
- The 2G plant will play a major role in making bioethanol available for blending.
- In addition to reducing agricultural waste incineration, it can also help meet the goal of converting waste into energy.
Moves for production
- The first 2G ethanol biorefinery is being set up at Bathinda, Punjab.
- Hindustan Petroleum Corporation Ltd (HPCL) plans to set up four 2G ethanol plants that will convert agricultural waste into biofuel, reducing toxic air pollution in northern India.
- Additionally, HPCL has plans to build four plants to produce ethanol using grains, such as surplus maize, surplus rice and damaged grain.
Innovations in this field
- An Indian company has filed a patent for loop reactor technology.
- It is a long, serpentine tubular reactor, in which fermentable sugars are converted to ethanol with the help of brewer’s yeast.
- This sparked an idea to come up with reactive pipeline technology, wherein the pipeline connects the sugar factories where the ethanol is produced to the blending depot at the closest oil manufacturing companies.
- Reactive pipeline technology is poised to be a game-changer for sugar factories and grain-based distilleries since uninterrupted raw material supply is a major challenge.
Benefits offered by ethanol blending
(1) Energy security
- The Union government has emphasized that increased use of ethanol can help reduce the oil import bill.
- India’s net import cost stands at $551 billion in 2020-21. It is estimated that the E20 program can save the country $4 billion (Rs 30,000 crore) per annum.
(2) Emission reduction
- Use of ethanol-blended petrol decreases emissions such as carbon monoxide (CO), hydrocarbons (HC) and nitrogen oxides (NOx), the expert committee noted.
- Higher reductions in CO emissions were observed with E20 fuel — 50 per cent lower in two-wheelers and 30 per cent lower in four-wheelers.
Some issues to be addressed
(1) Fuel efficiency
- There is an estimated loss of six-seven per cent fuel efficiency for four-wheelers and three-four per cent for two-wheelers when using E20, the committee report noted.
- These vehicles are originally designed for E0 and calibrated for E10.
(2) Recalibrating engines
- The use of E20 will require new engine specifications and changes to the fuel lines, as well as some plastic and rubber parts due to the fuel’s corrosive nature.
- The engines, moreover, will need to be recalibrated to achieve the required power, efficiency and emission-level balance due to the lower energy density of the fuel.
Conclusion
- The country’s target of 20 per cent ethanol blending in petrol (E20) by 2025 can play a key role in reducing crude oil imports and bolstering India’s energy independence.
- But India may miss an earlier goal set by him in 2015 — of reducing crude oil import dependency 10 per cent by 2022.
- The target is far from being met and the country’s import dependency is only increasing.
- The country’s target of 20 per cent ethanol blending in petrol (E20) by 2025 can play a key role in reducing crude oil imports and bolstering India’s energy independence.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
Back2Basics: EBP Programme
- Ethanol Blended Petrol (EBP) programme was launched in January 2003 for the supply of 5% ethanol blended petrol.
- The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
- OMCs are advised to continue according to priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
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: MEIS, RODTEP Scheme
Mains level: Export promotion schemes in India
The Centre has notified the rates and norms for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme asserting that it would put ‘direct cash in the pockets of exporters’ soon.
RoDTEP Scheme
- RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
- It has been kicked in from January 2021, replacing the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) that were in violation of WTO norms.
- The new RoDTEP Scheme is a fully WTO compliant scheme.
- It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
Answer this PYQ:
Q.With reference to the international trade of India at present, which of the following statements is/are correct?
- India’s merchandise exports are less than its merchandise imports.
- India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.
- India’s exports of services ye more than its imports of services.
- India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 4 only
(c) 3 only
(d) 1, 3 and 4 only
Post your answers here (You need to sign-in for that).
Why need such a scheme?
- The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
- Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.
Coverage of the scheme
- It covers about 75% of traded items and 65% of India’s exports.
- To enable zero-rating of exports by ensuring domestic taxes are not exported, all taxes, including those levied by States and even Gram Panchayats, will be refunded under the scheme.
- Steel, pharma, and chemicals have not been included under the scheme because their exports have done well without incentives.
Back2Basics: Merchandise Exports from India Scheme (MEIS)
- MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
- This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
- It intended to incentivize exports of goods manufactured in India or produced in India.
- The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
- The MEIS covered almost 5000 goods notified for the purpose of the scheme.
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: Major rivers of the world
Mains level: NA
The federal government in the US has declared a water shortage for the Colorado river basin due to a historic drought.
Try this PYQ
Q. Consider the following pairs
River – Flows into
- Mekong — Andaman Sea
- Thames — Irish Sea
- Volga — Caspian Sea
- Zambezi — Indian Ocean
Which of the pairs given above is/are correctly matched?(CSP 2020)
(a) 1 and 2 only
(b) 3 only
(c) 3 and 4 only
(d) 1, 2 and 4 only
Post your answers here (you need to sign-in for that).
Colorado River
- The Colorado River flows from the Rocky Mountains into the southwestern US and into Mexico.
- The river is fed by snowmelt from the Rocky and Wasatch mountains and flows a distance of over 2,250 km (river Ganga flows through a distance of roughly 2,500 km) across seven states and into Mexico.
- The Colorado River Basin is divided into the Upper (Wyoming, Colorado, New Mexico, Utah and northern Arizona) and Lower Basins (parts of Nevada, Arizona, California, southwestern Utah and western New Mexico).
- In the Lower Basin, the Hoover Dam controls floods and regulates water delivery and storage.
- Apart from the Hoover dam, there is the Davis Dam, Parker Dam and the Imperial Dam that regulate the release of water from the Hoover Dam.
Major lakes in its basin
- Lake Mead is the largest reservoir in the US in terms of volume and was formed in the 1930s by the Hoover Dam in Southern Nevada.
- Its main source of water is obtained from the Rocky Mountain snowmelt and runoff.
- The other is Lake Powell, the reservoir created by the Glen Canyon Dam in Arizona.
Reasons for shortage
- Since the year 2000, this river basin has been experiencing a prolonged drought.
- This persistent drought has led to a lowering down of the water levels in the basin’s reservoirs to meet the demand over the years.
- But even with great water storing capacity, over the years the demand for water from the basin has increased whereas supply is restricted.
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: Maharaja Ranjit Singh
Mains level: Not Much
A bronze statue of the first ruler of the Sikh Empire, Maharaja Ranjit Singh, was vandalized in Pakistan.
Who was Maharaja Ranjit Singh?
- Maharaja Ranjit Singh (13 November 1780 – 27 June 1839), popularly known as Sher-e-Punjab or “Lion of Punjab”, was the first Maharaja of the Sikh Empire.
- He survived smallpox in infancy but lost sight in his left eye.
- Prior to his rise, the Punjab region had numerous warring misls (confederacies), twelve of which were under Sikh rulers and one Muslim.
- Ranjit Singh successfully absorbed and united the Sikh misls and took over other local kingdoms to create the Sikh Empire.
- He repeatedly defeated invasions by outside armies, particularly those arriving from Afghanistan, and established friendly relations with the British.
Empirical expansion
- Ranjit Singh’s trans-regional empire spread over several states. His empire included the former Mughal provinces of Lahore and Multan besides part of Kabul and the entire Peshawar.
- The boundaries of his state went up to Ladakh — Zorawar Singh, a general from Jammu, had conquered Ladakh in Ranjit Singh’s name — in the northeast.
- His empire extended till Khyber pass in the northwest, and up to Panjnad in the south where the five rivers of Punjab fell into the Indus.
- During his regime, Punjab was a land of six rivers, the sixth being the Indus.
His legacy
- Ranjit Singh’s reign introduced reforms, modernization, investment into infrastructure, and general prosperity.
- His Khalsa army and government included Sikhs, Hindus, Muslims, and Europeans.
- His legacy includes a period of Sikh cultural and artistic renaissance, including the rebuilding of the Harmandir Sahib in Amritsar, Takht Sri Patna Sahib, Bihar, and Hazur Sahib Nanded, Maharashtra under his sponsorship.
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: IPCC
Mains level: Paper 3- What IPCC report seeks to convery
Context
The Intergovernmental Panel on Climate Change (IPCC) recently released the Working Group I contribution to the Sixth Assessment Report (AR6). It is the first of four that the Panel will issue over the next one and a half years.
What does the report say?
- Global surface temperature is now higher by 1.07oC since the pre-industrial era.
- The impact of climate change on the atmosphere, oceans and land is unmistakably of human origin and this impact is picking up pace.
- Carbon dioxide is the dominant source of warming.
- Aerosols contribute to reducing the impact of warming by other greenhouse gases, by almost a third.
- Methane reduction, while needed overall, is particularly significant only as part of the endgame as the drastic reduction of aerosols actually leads to an increase in warming.
- The report expectedly projects an increase in climate extremes due to global warming, with heatwaves, extreme rainfall events and occurrence of extreme sea levels all expected to intensify and be more frequent.
- A major finding of the report is that air pollution reduction and steep climate change mitigation are not complementary goals but require independent efforts over the short and medium-term
- With the inclusion of the Indian Institute of Tropical Meteorology’s Earth System Model among the climate models used in AR6, India too has joined the climate modelling fraternity.
About the net-zero emission targets
- The report’s clear message is that reaching net zero was not the determining factor for the world to limit itself to a 1.5oC , or 2oC, or indeed any specific temperature increase.
- The report is clear that it is the cumulative emissions in reaching net zero that determine the temperature rise.
- India’s Ministry for Environment, Forest and Climate Change was quick to note this point about net zero in a statement, adding that “historical cumulative emissions are the cause of the climate crisis that the world faces today”
- The limitations of the remaining carbon budget for 1.5oC are so stringent — a mere 500 billion tonnes of carbon dioxide for an even chance of keeping to the limit — that they cannot be met by promises of net-zero 30 years from now.
- Equally, the disconcerting finding is that the world is set to cross the 1.5oC limit within 10-15 years.
Implications for India
- India has contributed less than 5% of global cumulative emissions to date, with per capita annual emissions a third of the global average.
- India is also the only nation among the G20 with commitments under the Paris Agreement that are even 2oC warming-compatible.
- India needs its development space urgently to cope with the future, one where global temperature increase may be closer to 2oC.
- Even if India completely stops its emission which is 3 billion tonnes in carbon dioxide equivalent terms, for the next 30 years, with others’ emissions remaining the same, will buy the world less than two years of additional time for meeting the Paris Agreement temperature goals.
Way forward
- Equity: Focusing on definite cumulative emission targets keeping equity and historical responsibility in view,
- Immediate reduction by developed countries: Immediate emission reductions by the developed countries with phase-out dates for all fossil fuels.
- Investment: Massive investment in new technologies and their deployment,
- Climate finance: a serious push to the mobilisation of adequate climate finance is the need of the hour.
Conclusion
This is the message that the IPCC report has sent to this year’s climate summit and the world. The message is a dire warning, all the stakeholders should heed the warning.
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 2- Implications of situation in Afghanistan for India
Context
The rapid fall of Afghanistan after the withdrawal of the US sent shockwaves across the region.
Cause of concern for India
- The Taliban’s entry into Kabul, marks the beginning of a new phase in the relationship between Afghanistan and India.
- Recent developments in South Asia certainly point to a recurring dynamic between Afghanistan and India.
- The restoration of Taliban rule in Afghanistan with Pakistan’s support undoubtedly presents some very serious potential challenges for Indian security.
- However, a measure of strategic patience could help India cope with the adverse developments in Afghanistan and find ways to secure its interests in the near future.
- For India, a bigger question mark will be about the Taliban’s renewed support for international terrorism and Pakistan’s re-direction of jihadi groups that have allegedly fought with the Taliban towards India.
Afghanistan from 1979 to 2001 and how it changed the subcontinent
- At the end of 1979, the Soviet Union launched a massive military invasion to protect a communist regime in Kabul.
- The US and Pakistan responded by unleashing a religious jihad that compelled Russia to withdraw by 1989.
- Pakistan’s critical role in the Afghan war against Russia allowed Pakistan to secure the political cover for the country’s acquisition of nuclear weapons.
- The Pakistan army turned the jihadi armies to gain control of Afghanistan and launched a proxy war against India, especially in the Punjab and Kashmir regions.
- The turbulence of the 1990s saw deepening conflict between India and Pakistan.
- Al Qaeda, hosted by the Taliban, launched terror attacks against the US on September 11, 2001.
- Swift US retribution brought an end to Taliban rule and compelled Pakistan to reconsider its policies.
- After 2001, there has also been a significant expansion of the India-US strategic partnership.
- By the end of the decade, though, the Pakistan Army had swung back to its default positions — renewed support for the Taliban in Afghanistan.
- Pakistan also teased an increasingly war-weary Washington into a negotiation with the Taliban for a peace settlement.
Way forward for India
- Patience: Like all radical groups, the Taliban will have trouble balancing its religious ideology with the imperatives of state interests.
- India would want to carefully watch how this tension plays out.
- Watch the relation between Pakistan and Taliban: Equally important is the nature of the relationship between the Taliban and Pakistan.
- The Taliban is bound to seek a measure of autonomy from Pakistan, India will have to wait.
- Prepare for cross-border terror: India must fully prepare for a renewal of cross-border terror, but there is a lot less global acceptance of terrorism today than in the permissive 1990s.
- No major power would like to see Afghanistan re-emerge as a global sanctuary of terror.
- The world has also imposed significant new constraints on Pakistan’s support for terror through mechanisms like the Financial Action Task Force.
- Unlike in the 1990s, when Delhi simply absorbed the terror attacks, it now shows the political will to retaliate forcefully.
- Regional geopolitical alignment: It is also important to note that the US and the West will continue to have a say in shaping the international attitudes towards the new regime.
- The Taliban and Pakistan appear to be acutely conscious of this reality.
Conclusion
For a patient, open-minded and active India, there will be no dearth of balancing opportunities in Afghanistan.
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: Powers of ECI
Mains level: Paper 2- Electoral reforms in India
Context
According to the Association for Democratic Reforms (ADR), 233 MPs in the current Lok Sabha are facing criminal charges, up from 187 in 2014, 162 in 2009, and 128 in 2004. Recently, the Supreme Court has imposed fines on political parties for failing to comply with its orders regarding complete disclosure of their candidates’ criminal history.
Order adds strength to Election Commission
- Through the order in a recent case, the SC has put a new onus on the Election Commission to do something concrete, for example, create a phone app to display the detailed criminal history of any contesting candidate.
- This should be accompanied with a separate cell in the ECI to monitor the compliance of all the political parties regarding this; any breach should be brought to the attention of the SC without delay.
Why legislature and political parties are reluctant?
- Two excuses: The legislature has been very slow in addressing this issue, and political parties remain extremely reluctant to change their ways, citing two major excuses.
- Winnability of candidate: “Winnability” of candidates is the first reason.
- The logic of a candidate with criminal charges doing good for the people of a constituency is dubious at best.
- The winnability clause is an attempt by the party to absolve itself of all blame and put the onus of sending a criminally charged candidate to Parliament solely on the voter.
- Innocent until proven guilty maxim: The other reason offered by political parties is summarised by the maxim of Indian law, which is that any accused is innocent until proven guilty.
- It is argued that most criminally accused candidates are the victims of “vendetta politics”.
Issues with allowing criminals to contest election
- The logic of a candidate with criminal charges doing good for the people of a constituency is dubious at best.
- Violation of right to equality under Article 14: There were 4.78 lakh prisoners (as of December 2019) of whom 3.30 lakh were under trial, i.e. not yet proven guilty.
- Yet, their fundamental rights — their right to liberty, freedom of movement, freedom of occupation and right to dignity — are curbed completely.
- An “innocent” undertrial cannot vote, but a man chargesheeted for murder can even contest election from jail.
- These blatant double standards are a clear violation of Article 14, which guarantees to all citizens equality before the law.
Suggestions
- ECI suggestion on vendetta politics: The ECI has suggested some safeguards against vendetta politics.
- First, only offences that carry an imprisonment of at least 5 years are to be considered.
- The case against the candidate should have been filed at least six months before the scheduled elections for it to be considered.
- And finally, a competent court must have framed the charges.
- Fast-track court: An alternative solution would be to try cases against political candidates in fast-track courts.
- The Supreme Court had sent a directive in 2014, directing that cases against political candidates must be completed within a year, failing which the matter should be reported to the Chief Justices of the respective High Court.
- This is a matter entirely in the judicial domain.
- Barring political parties: The Supreme Court has, in the recent order stopped short of drastic steps by rejected the suggestion to direct the Election Commission to bar political parties that fail to comply with criminalisation protocols by using its authority derived from Clause 16A of the Election Symbols Order.
- This step, the SC reasons, would be going too far and infiltrating the domain of the legislature.
Conclusion
The legislature and the judiciary need to do more to curb the menace of criminalisation of politics.
Feeling anxious about your UPSC preparation? Don’t worry, speak with our mentors and get your problems resolved, personally! (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: Unicorn club
Mains level: Paper 3- How startup ecosystem can help transform India
Context
With 62 per cent of the population in the working-age group and 54 per cent below the age of 25, we have the advantage of leveraging the skill and ability of our youth to drive the nation forward through productive output and innovation.
Significance of startup ecosystem in the country
- In 2021 alone, Indian startups have so far raised upward of $20 billion in funding.
- Today, India is home to more than 40,000 startups and is building a robust tech and internet infrastructure.
- The last decade-and-a-half has witnessed a significant change in the landscape — from the founding of new startups, to global investor interest, to the advances made in infrastructure and policies.
- Global investors too are realising the potential upside in India’s huge, under-penetrated market as the country steadily makes a place for itself as a leading R&D hub for many Silicon Valley companies.
- Amid the Covid-19 pandemic, Indian startups have rapidly innovated to provide indigenous, tech-enabled solutions to combat challenges from testing kits and ventilators to remote monitoring, and preventive technologies, as well as innovations in supply chain management, logistics, and education.
Factors driving startup economy in India
- The steady rise of Indian IT companies in the 2000s, a large talent pool of a skilled workforce, increased expendable income, and rising capital inflows have collectively contributed in large part.
- Young generation: Moreover, the ability of the young generation to take risks, move fast, and disrupt things without fear, has become our biggest asset today.
- Increasing internet use: In the next five years and likely to have an estimated 850 million internet users by 2030, the country stands at the cusp of unprecedented economic growth.
How it helps economy
- The proliferation of this startup economy has brought with it new business opportunities, innovation, tech-centric approaches and job creation across sectors.
- A mature startup ecosystem, with seasoned entrepreneurs and technology-led solutions, paves the way for innovation and expanding its global footprint.
- While value creation lies at the centre of entrepreneurship, Indian startups are also taking big strides in building synergies and partnerships with global entities, further demonstrating the evolution of the startup ecosystem and its appetite for innovation, collaboration and disruption.
- In fact, one of the paradigm shifts brought about through technology during the pandemic has been systemic shift to online education and remote learning at scale.
- Solutions built by Indian startups saw widespread adoption not just domestically but also on a global scale, firmly establishing the country as a cornerstone of tech and innovation in the world.
Suggestions
- Educations and reskilling: In order to transition beyond the current capabilities and achieve the demographic dividend, education, and reskilling, and upskilling of our workforce is crucial.
- Policy environment: Apart from the domestic policy environment, the global environment and technological advances are also changing, and it is imperative that India is prepared for this revolution.
- Foster entrepreneurship: Apart from policy-level decisions that promote entrepreneurship, the onus is also on India’s corporate sector to foster entrepreneurialism, and create synergies to build impactful technology solutions, sustainable and resource-efficient growth.
- Inclusion and sustainability: As country stands at the cusp of unprecedented economic growth, speed, inclusion, and sustainability are key elements in this mission.
- Tap the potential of rural and semi-urban India: The collective future efforts of the public and private sectors to improve physical and digital connectivity will also help unlock the untapped potential of rural and semi-urban India to truly lead Industry 4.0 and beyond.
- Focus on goals of national importance: In view of achieving this transformation at scale, the Indian startup ecosystem must focus on developing solutions that allow businesses in key sectors to meet goals of national importance.
Conclusion
Coupled with the nation’s focus on strengthening digital infrastructure in healthcare and education, and boosting employment in manufacturing, there is little doubt that India@100 will be a powerhouse of the global economy.
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: Official Opposition, LoP
Mains level: Parliamentary Conduct and decorum of the houses
The 60-member Nagaland Assembly now has no MLA in the Opposition.
Official Opposition
- It is a term used in Parliament and State Legislatures to designate the political party which has secured the second largest number of seats in either upper or lower houses.
- In order to get formal recognition in either upper or lower houses, the concerned party must have at least 10% of the total strength of the house.
- A single party has to meet the 10% seat criterion, not an alliance.
- Many of the Indian state legislatures also follow this 10% rule while the rest of them prefer the single largest opposition party according to the rules of their respective houses.
Why study the Opposition?
- The Rajya Sabha Chairman Venkaiah Naidu recently broke down when he condemned the violent ruckus that erupted in the Upper House very recently.
- This has raised questions about the decency of the conduct of our elected representatives.
Role of the Opposition
- The role of the opposition in the legislature is basically to check the excesses of the ruling or dominant party, and not to be totally antagonistic.
- Their main role is to question the government of the day and hold them accountable to the public. This also helps to fix the mistakes of the Ruling Party.
- The Opposition is equally responsible for upholding the best interests of the people of the country.
- They have to ensure that the Government does not take any steps, which might have negative effects on the people of the country.
In the legislature, Opposition Party has a major role, which is:
- Constructive criticism of the government.
- Putting restriction of the arbitrariness of ruling party
- Safeguarding liberty and right of people
- Preparation to form a government
- Expression of public opinion
Leader of the Opposition
- They are the politicians who lead the official opposition in either House of the Parliament of India.
- The LoP is the parliamentary chairperson of the party with the most seats after the government party.
- S/He is given the status of a minister in recognition of his importance.
- The LoP received statutory recognition through the Salary and Allowances of Leaders of Opposition in Parliament Act, 1977.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
Must read:
[Burning Issue] Democide: Causes and ways to avoid it
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: Tribunals
Mains level: Issues with Tribunals Reform Bill 2021
The Supreme Court has challenged the government to produce material showing its reasons for introducing the Tribunal Reforms Bill of 2021, which abolishes nine appellate tribunals and revives provisions of an ordinance struck down by the Supreme Court, in the Parliament.
What are Tribunals?
- Tribunals are specialist judicial bodies that decide disputes in a particular area of law.
- They are institutions established for discharging judicial or quasi-judicial duties.
- The objective may be to reduce the caseload of the judiciary or to bring in subject expertise for technical matters.
Do you know?
The Income Tax Appellate Tribunal was established as the first Tribunal in India back in 1941.
Creation of Tribunals
In 1976, Articles 323A and 323B were inserted in the Constitution of India through the 42nd Amendment.
- Article 323A: This empowered Parliament to constitute administrative Tribunals (both at central and state level) for adjudication of matters related to recruitment and conditions of service of public servants.
- Article 323B: This specified certain subjects (such as taxation and land reforms) for which Parliament or state legislatures may constitute tribunals by enacting a law.
- In 2010, the Supreme Court clarified that the subject matters under Article 323B are not exclusive, and legislatures are empowered to create tribunals on any subject matters under their purview as specified in the Seventh Schedule.
SC stance on Tribunals
- The Supreme Court has ruled that tribunals, being quasi-judicial bodies, should have the same level of independence from the executive as the judiciary.
- Key factors include the mode of selection of members, the composition of tribunals, and the terms and tenure of service.
- In order to ensure that tribunals are independent of the executive, the Supreme Court had recommended that all administrative matters be managed by the law ministry rather than the ministry associated with the subject area.
- Later, the Court recommended the creation of an independent National Tribunals Commission for the administration of tribunals.
- These recommendations have not been implemented.
Issues with tribunals
- Pendency: Whereas the reasoning for setting up some tribunals was to reduce the pendency of cases in courts, several tribunals are facing the issue of a large caseload and pendency.
- No appointment: With over 240 vacancies in key tribunals where thousands of cases were pending, not a single appointment had been made by the government in any of these tribunals till date.
Tribunals Reforms Bill, 2021
What is the recent news?
- A three-judge Bench led by CJI has put the government on the dock about the complete absence of material justifying the Bill and also the lack of proper debate in the Parliament.
- The provisions regarding conditions of service and tenure of Tribunal Members and Chairpersons were struck down by the Supreme Court.
- However, the same provisions re-appeared in the Tribunal Reforms Bill recently passed.
- The court has also noted its reservations against the complete dissolution of some tribunals.
What happens to cases pending before the tribunals are dissolved?
- These cases will be transferred to High Courts or commercial civil courts immediately. Legal experts have been divided on the efficacy of the government’s move.
- While on the one hand, the cases might get a faster hearing and disposal if taken to High Courts, experts fear that the lack of specialization in regular courts could be detrimental to the decision-making process.
- For example, the FCAT exclusively heard decisions appealing against decisions of the censor board, which requires expertise in art and cinema.
Observations made by the Court
- With over 240 vacancies in key tribunals where thousands of cases were pending, not a single appointment had been made by the government in any of these tribunals to date.
- The CJI repeated his question of whether the government was moving towards closing down the tribunals.
A new flashpoint between Executive and Judiciary
- The verdict discussed the possibility of legislation overriding the court’s directions.
- In other cases, too, the SC and Parliament have been at loggerheads on the issue of rationalization of tribunals.
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: Positive Pay System
Mains level: Not Much
Banks have been informing customers about making mandatory, the positive pay system, a process of reconfirming the key details of high-value cheques.
What is the Positive Pay System?
- The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large value cheques.
- Under this system, a person issuing the high-value cheque submits certain essential details of that cheque like date, name of the beneficiary/payee amount etc. to the drawee bank.
- The details can be submitted through electronic means such as SMS, mobile app, internet banking, ATM etc.
- The details are cross-checked while issuing the cheque and any discrepancy is flagged.
Try answering this PYQ:
Q.Which one of the following links all the ATMs in India? (CSP 2018)
(a) Indian Banks’ Association
(b) National Securities Depository Limited
(c) National Payments Corporation of India
(d) Reserve Bank of India
(Note: You need to sign-in to answer this PYQ)
Post your answers here.
What is the limit on the amount for the system?
- RBI has told banks to enable the facility for all account holders issuing cheques for amounts of ₹50,000 and above.
- It has also been said that while availing of the facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheque values of ₹5 lakh and above.
Why is this system important for customers?
- Some banks have been telling customers that if the details of large-value cheques are not pre-registered, the cheque will be returned.
- On issuance of a high-value cheque, customers should ensure that details are provided within the timeframe prescribed by the banks for hassle-free clearance.
- RBI has said only cheques that are registered in the Positive Pay System will be accepted under the dispute resolution mechanism.
- Customers would get an SMS on whether the cheque is accepted or rejected for any reason.
What are the details of the cheque that must be submitted?
- Account number, cheque number, date of the cheque, amount, transaction code, beneficiary name, MICR CODE.
How can these details be submitted?
- These details can be submitted through the respective bank’s website, internet banking, or mobile banking.
- In case a customer does not use electronic banking services, they can submit the details by visiting bank branches.
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: National Gene Bank
Mains level: Not Much
The Union Agriculture Minister has inaugurated the world’s second-largest refurbished gene bank at the National Bureau of Plant Genetic Resources.
National Gene Bank
- The National Gene Bank was established in the year 1996 to preserve the seeds of Plant Genetic Resources (PGR) for future generations.
- It has the capacity to preserve about one million germplasm in the form of seeds.
- Presently it is protecting 4.52 lakh accessions, of which 2.7 lakh are Indian germplasm and the rest have been imported from other countries.
- National Bureau of Plant Genetic Resources is meeting the need of in-situ and ex-situ germplasm conservation through Delhi Headquarters and 10 regional stations in the country.
Key facilities provided
- The NGB has four kinds of facilities to cater to long-term as well as medium-term conservation namely:
- Seed Gene bank (- 18°C),
- Cryo gene bank (-170°C to -196°C),
- In-vitro Gene bank (25°C), and
- Field Gene bank
- It stores different crop groups such as cereals, millets, medicinal and aromatic plants, and narcotics, etc.
What is the latest update?
- This is the world’s second-largest gene bank located in the national capital.
- It has the capacity to preserve about one million germplasm in the form of seeds.
- Presently, it is protecting 4.52 lakh accessions, of which 2.7 lakh are Indian germplasm and the rest have been imported from other countries.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
Also read:
Svalbard Global Seed Vault
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: Slender Loris
Mains level: Various endemic species of India
The Kadavur hills in central Tamil Nadu’s Karur district are home to the Kadavur Reserve Forest. These forests are home to the shy and reclusive slender loris, a species of primate.
Slender Loris
- Slender loris (Loris tardigradus) is secretive and has nocturnal habits. It usually travels from the canopy of one tree to another. But, at times, it also comes down to bushes at the ground level to feed.
- It is also found in the adjoining forest areas on the eastern, southern and western slopes of the Kadavur hills.
- It sleeps by day in the foliage or in a hole or crevice. It comes out at dusk in search of prey.
- They are fond of lantana berries and also eat insects, lizards, small birds, tree frogs, tender leaves and buds.
- They are usually solitary but sometimes found in pairs.
Conservation
- The slender loris has been listed as ‘Endangered’ by the International Union for the Conservation of Nature.
- It has been brought under Schedule I of the Wild Life (Protection) Act, 1972 in order to provide the highest level of legal protection.
Threats
- As it is believed that these animals have some medicinal properties, they are captured and sold.
- Since there is great demand for keeping these animals as pets, they are illegally smuggled.
- Habitat loss, electrocution of live wires, and road accidents are other threats that have caused its populations to dwindle.
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 2- How interaction with the rest of the world shaped India
Context
Ever since Independence, India’s fate has been closely tied to the rest of the world.
How global interactions and how it shaped India
- A large, newly independent, impoverished, and diverse country required active engagement with a variety of partners for its survival, security, and development.
- But a constantly evolving international environment presented India not just with opportunities but numerous challenges.
- Poorly demarketed borders: Its frontiers were initially poorly demarcated and poorly integrated.
- Nuclear-armed neighbours: India came to have two nuclear-armed neighbors with which it competed for territory.
- Relations with the US and Russia: India’s first leaders opted for flexible and friendly relations with both the U.S. and the Soviet Union and their respective allies.
- The Indo-Soviet Treaty of Friendship and Cooperation and the Bangladesh war altered India’s relations with both superpowers and shifted the dynamics of the rivalry with Pakistan.
- Role in global politics: India also played an activist role in the decolonizing world, extending diplomatic and (in some cases) security assistance to independence movements in Asia and Africa and sending military missions to Korea and the Congo.
- Economic progress: There were also important economic strides made, including the Green Revolution, undertaken with considerable foreign technical and financial assistance.
- Independent policy: India often found itself at odds with the great powers when it felt its greater interests were threatened, as on intervention in Bangladesh, nuclear non-proliferation, or trade.
India after the Cold War
- The 1991 Gulf war resulted in a balance of payments crisis and the liberalization of the economy.
- India then adopted a range of reforms to liberalize the economy, but it faced more than just economic turmoil.
- Yet, the period that followed witnessed some important developments under the prime ministership of P.V. Narasimha Rao:
- The period saw the advent of the Look East Policy and relations with the Association of Southeast Asian Nations
- It also saw the establishment of diplomatic ties with Israel.
- The signing of a border peace and tranquility agreement with China took place in the same period
- The period also witnessed initial military contracts with the U.S., and preparations for nuclear tests.
- The Atal Bihari Vajpayee government built further upon these developments, conducting a series of tests in 1998, negotiating a return to normal relations with most major powers within two years.
- Economic development: These years also witnessed a rapid growth of the Indian economy, fuelled by a boom in information and communication technology companies, the services sector, and a rising consumer market.
- After 2004, the Manmohan Singh government worked extensively to resolve the outstanding question of India’s nuclear status.
- By eliminating barriers to ‘dual use’ technologies and equipment, as well as a host of associated export controls, India had the opportunity to establish robust defense relations with the U.S. and its allies.
- Coupled with an economic deceleration after 2011, India’s relations with the U.S. and Europe grew more contentious over the next three years.
Relationship with China
- The global financial crisis in 2008-09 presaged a slight change in approach, whereby India sought to partner with China and other rising powers on institutional reform, financial lending, climate change, and sovereignty.
- Beginning in 2013, China began to test India on the border and undermine Indian interests in South Asia and the Indian Ocean Region.
- With further stand-offs at Doklam and Ladakh between 2017 and 2021, India opted to boycott China’s Belt and Road Initiative, raise barriers to Chinese investment.
- In response, India began consulting more closely with other balancing powers in the Indo-Pacific.
- Security relations and understandings with the U.S. and its allies (Japan, France, Australia) accelerated after 2014.
- A greater emphasis on neighborhood connectivity was adopted.
Way forward
- As India enters its 75th year of independence, there are plenty of reasons for cautious optimism about its place in the world.
- COVID-19 and growing international competition also underscore the difficulties that India will likely face as it attempts to transform into a prosperous middle-income country.
- What is certain is that India will not have the luxury to turn inwards.
Conclusion
India’s objectives have been broadly consistent: development, regional security, a balance of power, and the shaping of international consensus to be more amenable to Indian interests. At the same time, India’s means and the international landscape have changed, as have domestic political factors.
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: Third schedule of Constitution
Mains level: Paper 2- Oath of an elected representative
Context
Some Cabinet Ministers in Karnataka who took oath recently stood out from the rest. All these oaths run against the spirit of the Constitution.
Background of agnostic Constitution
- The public officials who took office under the Government of India Act, 1935 had to take oath which had no mention of God.
- During the Constituent Assembly debate, B.R. Ambedkar proposed the Preamble, “We, the people of India…”.
- H.V. Kamath moved an amendment to the Preamble, “In the name of God, we, the people of India…”.
- To this proposal, another member, A. Thanu Pillai said that if this amendment is accepted it would affect the fundamental right of freedom of faith.
- He said that a man has a right to believe in God or not, according to the Constitution.
- H.N. Kunzru opposed Kamath’s amendment stating that in a matter that vitally concerns every man individually, the collective view should not be forced on anybody.
- The amendment was defeated, thereby excluding ‘God’ from the Preamble.
- Thus, our founding fathers gave us an agnostic Constitution.
What are provisions in Consitution
- The public officials who took office under the Government of India Act, 1935 had to take oath which had no mention of God.
- However, the framers of the Indian Constitution rejected this conception of secularism.
- Constitution gives office-holders an option to swear in God’s name if they so wished.
- The Supreme Court of India observed in 2012 that the oath by an elected representative should be taken “in the name of God” if the person is a believer or should be “solemnly affirmed” if the person is a non-believer.
- The Supreme Court said that the oath of an elected representative should be in strict compliance with the wordings of the Constitution.
Way forward
- As the Republic belongs to all the citizenry, irrespective of whether he is a theist, atheist or agnostic, and irrespective of his caste or religion, a person occupying a constitutional post should take oath in the format of ‘“solemnly affirm”.
- The Constitution should be amended accordingly.
Conclusion
If a person takes the oath in the name of a God affiliated to a particular religion or caste, the citizenry cannot expect the absence of affection or ill-will from him. The allegiance of a person holding a constitutional post should only be to the Constitution.
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- Lessons from China's economic progress
Context
As we look back on our own journey after independence and feel proud of our achievements, wisdom lies in also looking around to evaluate how other nations have performed, especially those which started with a similar base or even worse conditions than us.
How India’s neighbouring countries have performed?
- Independent India has done better than Pakistan if measured on a per capita income basis:
- Comparison with Pakistan: India’s per capita income stood at $1,960 (in current PPP terms, it was $6,460) in 2020, as per the IMF estimates, while Pakistan’s per capita income was just $1,260 (in PPP terms $5,150).
- Comparison with Bangladesh: Bangladesh, whose journey as an independent nation began in 1971, had a per capita income of $2,000 (though $5,310 in PPP terms), marginally higher than India, and certainly much higher than Pakistan in 2020.
- Comparison with China: The real comparison of India should be with China, given the size of the population of the two countries and the fact that both countries started their journey in the late 1940s.
- By 2020, China’s overall GDP was $14.7 trillion ($24.1 trillion in current PPP terms), competing with the USA at $20.9 trillion.
- India, however, lags way behind with its overall GDP at $2.7 trillion ($8.9 trillion in PPP terms).
- The quality of life, however, depends on per capita income in PPP terms, with the USA at $63,420, China at $17,190 and India at $6,460.
What made the difference between India and China?
- India adopted a socialist strategy while China took to communism to provide people food, good health, education, and prosperity.
- China, having performed dismally on the economic front from 1949 to 1977, started changing track to more market-oriented policies, beginning with agriculture.
- Agriculture reforms: Economic reforms that included the Household Responsibility System and liberation of agri-markets led to an annual average agri-GDP growth of 7.1 percent during 1978-1984.
- Reform in the non-Agri sector: Success in agriculture reforms gave political legitimacy to carry out reforms in the non-agriculture sector.
- Manufacturing revolution: The success of reforms in agriculture created a huge demand for manufactured products, triggering a manufacturing revolution in China’s town and village enterprises.
- Population control measures: China adopted the one-child norm from 1979-2015.
- As a result, its per capita income grew much faster.
- India’s attempts to control its population succeeded only partially and very slowly.
- India’s sluggish performance when compared to China raises doubts about its flawed democratic structure that makes economic reforms and implementation of policy changes more challenging, unlike China.
Way forward for India
- Liberating agri-markets is part of the reform package that China followed. That’s the first lesson.
- Increase purchasing power of rural areas: Even for manufacturing to grow on a sustainable basis, we have to increase the purchasing power of people in rural areas.
- This has to be done by raising their productivity and not by distributing freebies.
- Investment in various areas: Increasing productivity requires investments in education, skills, health and physical infrastructure, besides much higher R&D in agriculture, both by the government as well as by the private sector.
- Create institutional setup: This requires a different institutional setup than the one we currently have.
Conclusion
India’s sluggish performance when compared to China raises doubts about its flawed democratic structure that makes economic reforms and implementation of policy changes more challenging, unlike China. But India has lessons to learn from China.
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: Fortification of food
Mains level: Addressing malnutrition issues
PM in his I-day speech has announced the fortification of rice distributed under various government schemes, including the Public Distribution System (PDS) and mid-day meals in schools, by 2024.
What is Fortification?
- FSSAI defines fortification as “deliberately increasing the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefit with minimal risk to health”.
What is Fortified Rice?
- Rice can be fortified by adding a micronutrient powder to the rice that adheres to the grains or spraying the surface of ordinary rice grains with a vitamin and mineral mix to form a protective coating.
- Rice can also be extruded and shaped into partially precooked grain-like structures resembling rice grains, which can then be blended with natural polished rice.
- Rice kernels can be fortified with several micronutrients, such as iron, folic acid, and other B-complex vitamins, vitamin A and zinc.
- These fortified kernels are then mixed with normal rice in a 1:100 ratio, and distributed for consumption.
Note: Biofortification is the process by which the nutritional quality of food crops is improved through agronomic practices, conventional plant breeding, or modern biotechnology. It differs from conventional fortification in that Biofortification aims to increase nutrient levels in crops during plant growth rather than through manual means during the processing of the crops.
What is the plan announced by the PM?
- Malnutrition and lack of essential nutrients in poor women and poor children pose major obstacles in their development.
- In view of this, it has been decided that the government will fortify the rice given to the poor under its various schemes.
- Be it the rice available at ration shops or the rice provided to children in their mid-day meals, the rice available through every scheme will be fortified by the year 2024.
Why such a move?
- The announcement is significant as the country has high levels of malnutrition among women and children.
- According to the Food Ministry, every second woman in the country is anemic and every third child is stunted.
- India ranks 94 out of 107 countries and is in the ‘serious hunger’ category on the Global Hunger Index (GHI).
- Fortification of rice is a cost-effective and complementary strategy to increase vitamin and mineral content in diets.
- According to the Food Ministry, seven countries have mandated rice fortification – the USA, Panama, Costa Rica, Nicaragua, Papua New Guinea, Philippines, and the Solomon Islands.
Advantages offered
- Health: Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.
- Taste: It provides nutrition without any change in the characteristics of food or the course of our meals.
- Nutrition: If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.
- Economy: The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.
- Society: It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger
Issues with fortified food
- Against nature: Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.
- Bioavailability: Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.
- Immunity issues: They lack immune-boosting substances.
- Over-nutrition: Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.
Adhering to FSSAI standard
The Food Safety and Standards Authority of India (FSSAI) sets standards for food items in the country.
- According to FSSAI norms, 1 kg fortified rice will contain iron (28 mg-42.5 mg), folic acid (75-125 microgram), and Vitamin B-12 (0.75-1.25 microgram).
- In addition, rice may also be fortified with micronutrients, singly or in combination, with zinc(10 mg-15 mg), Vitamin A (500-750 microgram RE), Vitamin B1 (1 mg-1.5 mg), Vitamin B2 (1.25 mg-1.75 mg), Vitamin B3 (12.5 mg-20 mg) and Vitamin B6 (1.5 mg-2.5 mg) per kg.
UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)
Back2Basics: Public Distribution System (PDS)
- The PDS is an Indian food Security System established under the Ministry of Consumer Affairs, Food, and Public Distribution.
- PDS evolved as a system of management of scarcity through the distribution of food grains at affordable prices.
- PDS is operated under the joint responsibility of the Central and State Governments.
- The Central Government, through the Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation, and bulk allocation of food grains to the State Governments.
- The operational responsibilities including allocation within the State, identification of eligible families, issue of Ration Cards and supervision of the functioning of FPSs etc., rest with the State Governments.
- Under the PDS, presently the commodities namely wheat, rice, sugar, and kerosene are being allocated to the States/UTs for distribution.
- Some states/UTs also distribute additional items of mass consumption through PDS outlets such as pulses, edible oils, iodized salt, spices, etc.
Mid-Day Meal Scheme
- The Midday Meal Scheme is a school meal program in India designed to better the nutritional standing of school-age children nationwide.
- It is a wholesome freshly-cooked lunch served to children in government and government-aided schools in India.
- It supplies free lunches on working days for children in primary and upper primary classes in government, government-aided, local body, and alternate innovative education centers, Madarsa and Maqtabs.
- The programme has undergone many changes since its launch in 1995.
- The Midday Meal Scheme is covered by the National Food Security Act, 2013.
The scheme aims to:
- avoid classroom hunger
- increase school enrolment
- increase school attendance
- improve socialization among castes
- address malnutrition
- empower women through employment
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now