Note4Students
From UPSC perspective, the following things are important :
Prelims level: Operation Flood
Mains level: India's dairy sector
One of India’s largest dairy cooperative societies has just raised its milk prices for consumers by Rs 2/litre and this has become national news.
Sparking off a debate
- Many in the media are debating how this will push up Consumer Price Index causing inflationary pressures, which may soon force the RBI to change its “accommodative stance” on monetary policy.
Why such hues over Milk?
Milk is an important case study for our overall agriculture sector.
- First, milk is our biggest agri-commodity in terms of value, greater than paddy (rice), wheat, and sugarcane combined.
- Second, India is the largest producer of milk in the world with an estimated production of about 208 million tonnes in 2020-21, way above its closest competitor, the US, whose milk production hovers around 100 million tonnes.
- Third, our dairy sector is dominated by smallholders with an average herd size of 4-5 animals.
- Fourth, and this is important, there is no minimum support price (MSP) for milk. It is more like a contract between the company and the farmers.
How is the milk price determined?
- The price of milk is largely determined by the overall forces of demand and supply.
- Increasing costs of production enter through the supply side, but the demand side cannot be ignored.
- As a result of all this, the overall growth in the dairy sector for the last 20 years has been between 4-5 per cent per annum, and lately, it has accelerated to even 6 per cent.
Concerns of dairy farmers
- For dairy farmers, this increase in milk prices is not commensurate to the increase in their feed and other costs, and they feel that their margins are getting squeezed.
- They also feel that this price still does not count their logistics cost.
Transformation since Op Flood
- It is well known that “Operation Flood” (OF) that started in the 1970s transformed this sector.
- The institutional innovation of a cooperative model, steered by Verghese Kurien, changed the structure of this sector.
- However, even after five decades, cooperatives processed only 10 per cent of the overall milk production.
- India needed the double-engine force of the organised private sector to process another 10 per cent.
- The doors for the private sector were opened partially with the 1991 reforms, but fully in 2002-03 under the leadership of Vajpayee, when the dairy sector was completely de-licenced.
Rise of dairypreneurs
- Many start-ups “dairypreneurs” have come in promising a farm-to-home experience of milk.
- There is one company that delivers fresh milk at the consumer’s doorstep and gives quality testing kits at home.
- These have digitized cattle health, milk production, milk procurement, milk testing, and cold chain management.
Effective breeding
- Sexed semen technology helps in predetermining the sex of offspring by sorting X and Y chromosomes from the natural sperm mix.
- This can solve the problem of unwanted bulls on Indian roads.
- Although the current cost of sexed sorted semen is high, Maharashtra has taken a bold step in subsidizing it for artificial insemination.
Way forward
- The upshot of all this is that let prices be determined by market forces, with marginal support from the government or cooperatives in times of extreme.
- The major focus should be on innovations to cut down costs, raise productivity, ensure food safety, and be globally competitive.
- That will help both farmers and consumers alike.
- The cooperatives did a great job during OF, and are still doing that, but the private sector entering this sector in a big way has opened the gates of creativity and competition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Turmoil in Afghanistan with US exit
The US troops are departing away after coordinating the 20-year-long war in Afghanistan, effectively ending their military operations in the country.
Why did the US invade Afghanistan?
- Weeks after the 9-11 terrorist attacks, the US declared war on Afghanistan.
- It was then ruled by the Taliban.
Terror then gets safe heaven
- Al-Qaeda’s leaders and key operatives fled to safe havens in Pakistan.
- The US rejected an offer from the Taliban to surrender and vowed to defeat the insurgents in every corner of Afghanistan.
- In 2003, US announced that major military operations in the country were over.
- The US focus shifted to the Iraq invasion, while in Afghanistan, western powers helped build a centralized democratic system and institutions.
- But that neither ended the war nor stabilised the country.
Why is the US pulling back?
- The US had reached the conclusion long ago that the war was unwinnable.
- It wanted a face-saving exit.
What are the terms of US exit?
- Before the Doha talks started, the Taliban had maintained that they would hold direct talks only with the US, and not with the Kabul government, which they did not recognize.
- The US effectively accepted this demand when they cut the Afghan government off the process and entered direct talks with the insurgents.
- The deal dealt with four aspects of the conflict — violence, foreign troops, intra-Afghan peace talks and the use of Afghan soil by terrorist groups such as al-Qaeda and the IS.
- According to the agreement, the Taliban promised to reduce violence, join intra-Afghan peace talks and cut all ties with foreign terrorist groups, while the US pledged to withdraw all its troops.
Present situation in Afghanistan
- After the agreement was signed, the US put pressure on the Afghan government to release thousands of Taliban prisoners — a key Taliban precondition for starting intra-Afghan talks.
- Talks between Taliban representatives and the Afghan government began in Doha in September 2020 but did not reach any breakthrough.
- At present, the peace process is frozen. And the US is hurrying for the exit.
- The Taliban reduced hostilities against foreign troops but continued to attack Afghan forces even after the agreement was signed.
- Kabul maintains that the Pakistan support for the Taliban is allowing the insurgents to overcome military pressure and carry forward with their agenda.
Pakistani role in reviving Taliban
- Pakistan was one of the three countries that had recognized the Taliban regime in the 1990s.
- The Taliban captured much of the country with help from Pakistan’s ISI.
- After the 9/11 attacks, Pakistan’s military dictator Musharraf, under pressure from the Bush administration, cut formal ties with the Taliban and joined America’s war on terror.
- But Pakistan played a double game. It provided shelter to the Talabani leaders and regrouped their organization which helped them make a staged comeback in Afghanistan.
- Pakistan successfully expected these groups to launch terror activities against India.
Again in the spotlight
- A violent military takeover of Afghanistan by the Taliban may not serve Pakistan’s core interests.
- It wants to check India’s influence in Afghanistan and bring the Taliban to Kabul.
- But a violent takeover, like in the 1990s, would lack international acceptability, leaving Afghanistan unstable for a foreseeable future.
- In such a scenario, Pakistan could face another influx of refugees from Afghanistan and strengthening of anti-Pakistan terror groups, such as the Tehrik-i-Taliban.
- From a strategic point of view, Pakistan would prefer the Taliban being accommodated in power through negotiations and a peaceful settlement.
- But it’s not clear whether Pakistan has the capacity to shape the post-American outcome in Afghanistan.
Why is India reaching out to the Taliban?
- India had made contacts with the Taliban in Doha. New Delhi has not denied reports of its outreach to the Taliban.
- India has three critical areas in dealing with the Taliban:
- One, protecting its investments, which run into billions of rupees, in Afghanistan;
- Two, preventing a future Taliban regime from being a pawn of the ISI;
- Three, making sure that the Pakistan-backed anti-India terrorist groups do not get support from the Taliban.
Is the Afghanistan government doomed?
- The American intelligence community has concluded that Kabul could fall within six months.
- None of the global leaders are certain about the survival of the Afghan government.
Taliban is pacing its action
- One thing is certain — the American withdrawal has turned the balance of power in the battleground in favour of the Taliban.
- They are already making rapid advances, and could launch a major offensive targeting the city centers and provincial capitals once the last American leaves.
Future of Afghanistan
There seems three possibilities:
- One, there could be a political settlement in which the Taliban and the government agree to some power-sharing mechanism and jointly shape the future of Afghanistan. As of now, this looks like a remote possibility.
- Two, an all-out civil war may be possible, in which the government, economically backed and militarily trained by the West, holds on to its positions in key cities. This is already unfolding.
- A third scenario would be of the Taliban taking over the country.
Any nation planning to deal with Afghanistan should be prepared for all three scenarios.
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From UPSC perspective, the following things are important :
Prelims level: Autonomous districts, Sixth Schedule
Mains level: Issues after reorganization of Jammu Kashmir
When Jammu and Kashmir were bifurcated into two UTs, Ladakh was seen welcoming the reorganization. However, different demands are coming from its two districts of Ladakh, Leh and Kargil.
Leh and Kargil, not alike
- The leaders from Kargil demanded that the district should remain part of J&K.
- The Leh-based Ladakh Buddhist Association has put forth its demand for an autonomous hill council under the Sixth Schedule, modelled on the lines of the Bodoland Territorial Council in Assam.
- But what Leh leaders did not bargain for was the complete loss of legislative powers.
- Earlier, the two districts each sent four representatives to the J&K legislature. After the changes, they were down to one legislator — their sole MP— with all powers vested in the UT bureaucracy.
- Unlike the UT of J&K, Ladakh was a UT without an assembly.
What are their concerns?
- What both Ladakh districts fear is the alienation of land, loss of identity, culture, language, and change in demography.
- They fear that it will follow their political disempowerment.
Hill Development Councils
- Leh and Kargil have separate Autonomous Hill Development Councils, set up under the Ladakh Autonomous Hill Development Councils Act, 1997.
- However, the AHDCs have no legislative powers.
- The councils are elected and have executive powers over the allotment, use and occupation of land vested in them by the Centre, and the powers to collect some local taxes, such as parking fees, taxes on shops etc.
- But the real powers are now wielded by the UT administration, which is seen as even more remote than the erstwhile state government of J&K.
What is the sixth schedule?
- The Sixth Schedule is a provision of Article 244(A) of the Constitution, originally meant for the creation of autonomous tribal regions in Assam, Meghalaya, Mizoram and Tripura.
- Hill councils under this provision have legislative powers.
Evolving demands
- But with no progress on Leh’s demand for Sixth Schedule protections, the Leh leadership has now upped its demands.
- Other issues under discussion are protections for language, culture, land and jobs, plus a long-standing demand for a route between Kargil and Skardu in territory under Pakistan in Gilgit- Baltistan.
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From UPSC perspective, the following things are important :
Prelims level: CRC treaty
Mains level: Child rights abuse
The US has added Pakistan and 14 other countries to a Child Soldier Recruiter List that identifies foreign governments having government-supported armed groups that recruit or use child soldiers.
Who is a child soldier?
- The recruitment or use of children below the age of 15 as soldiers is prohibited by the UN Convention on the Rights of the Child (CRC).
- Currently, 193 countries have ratified the CRC.
- The CRC requires state parties to “take all feasible measures” to ensure that children under 18 are not engaged in direct hostilities.
- It further prohibits the state parties from recruiting children under 15 into the armed forces.
- It is considered a war crime under the Rome Statute of the International Criminal Court.
- In addition, the Optional Protocol to the CRC further prohibits kids under the age 18 from being compulsorily recruited into state or non-state armed forces or directly engaging in hostilities.
- The United States is a party to the Optional Protocol.
What is US law?
- The US adopted the Child Soldiers Prevention Act (CSPA) in 2008.
- The CSPA prohibits the US government from providing military assistance, including money, military education and training, or direct sales of military equipment, to alleged countries.
What is prohibited for countries on the list?
The following types of security assistance are prohibited for countries that are on the list:
- Licenses for direct commercial sales of military equipment
- Foreign military financing for the purchase of defence articles and services, as well as design and construction services
- International military education and training
- Excess defence articles
- Peacekeeping operations
Criticism of the treaty
- International treaties like CRS are valuable and necessary tools to establish international norms as they raise awareness regarding human rights abuses.
- However, these treaties are limited in scope and nature, and they tend to be idealistic rather than practicable.
- The UN’s mechanisms only bind state parties that ratify the treaties.
- It, therefore, has no authority over countries that are not parties to the convention or are non-state entities, such as rebel militias recruiting child soldiers.
- While the UN views its treaties and conventions as binding on state parties, it has no police power mechanism to enforce its decisions.
- Therefore, the CRC and its Optional Protocol are limited by the signatories’ willingness to comply. Somalia, for example, is a signatory but it hasn’t ratified the convention.
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From UPSC perspective, the following things are important :
Prelims level: OPEC, OPEC Plus
Mains level: Global crude oil pricing mechanisms
OPEC+ has failed to reach a deal on oil output policy because the United Arab Emirates blocked some aspects of the pact.
About OPEC
- OPEC is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
- It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
- It is headquartered in Vienna, Austria.
- OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
- Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.
What is OPEC+?
- The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
- OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
- Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.
Must read:
[Burning Issue] Oil Prices and OPEC+
Concerns for India
- Rising oil prices are posing fiscal challenges for India, where heavily-taxed retail fuel prices have touched record highs, threatening the demand-driven recovery.
- India imports about 84% of its oil and relies on West Asian supplies to meet over three-fifths of its demand.
- As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery.
- This would hurt consumers, especially in our price-sensitive market.
Answer this PYQ in the comment box:
Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of (CSP 2020):
(a) Crude oil
(b) Bullion
(c) Rare earth elements
(d) Uranium
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From UPSC perspective, the following things are important :
Prelims level: Neutron star, Black Holes
Mains level: Gravitational waves observation
In an entirely strange phenomenon, astronomers have spotted two neutron stars being swallowed by different black holes.
What are Black Holes?
- A black hole is a region of spacetime where gravity is so strong that nothing—no particles or even electromagnetic radiation such as light—can escape from it.
- Neutron stars and black holes are among the most extreme objects in the universe. They are the fossil relics of massive dead stars.
- When a star that is more than eight times as massive as the Sun runs out of fuel, it undergoes a spectacular explosion called a supernova.
- What remains can be a neutron star or a black hole.
There is no upper limit to how massive a black hole can be, but all black holes have two things in common: a point of no return at their surface called an “event horizon”, from which not even light can escape and a point at their centre called a “singularity”, at which the laws of physics as we understand them break down.
What about Neutron stars?
- Neutron stars are typically between 1.5 and two times as massive as the Sun but are so dense that all their mass is packed into an object the size of a city.
- At this density, atoms can no longer sustain their structure and dissolve into a stream of free quarks and gluons: the building blocks of protons and neutrons.
What is the news observation?
- Gravitational waves are produced when celestial objects collide and the ensuing energy creates ripples in the fabric of space-time which carry all the way to detectors on Earth.
- The reverberations from the two celestial objects were picked up using a global network of gravitational wave detectors.
What makes this strange phenomenon?
- This is the first time scientists have seen gravitational waves from a neutron star and a black hole.
- Previous gravitational wave detections have spotted black holes colliding, and neutron stars merging but not one of each.
Why study this?
- Neutron star-black hole systems allow us to piece together the evolutionary history of stars.
- Gravitational-wave astronomers are like stellar fossil-hunters, using the relics of exploded stars to understand how massive stars form, live and die.
Answer this PYQ in the comment box:
Q.“Event Horizon” is related to (CSP 2018):
(a) Telescope
(b) Black hole
(c) Solar glares
(d) None of the above
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From UPSC perspective, the following things are important :
Prelims level: Project BOLD
Mains level: Not Much
The Khadi and Village Industries Commission (KVIC) has launched the unique Project Bamboo Oasis on Lands in Drought (BOLD) in Rajasthan.
Project BOLD
- Project BOLD seeks to create bamboo-based green patches in arid and semi-arid land zones.
- It is a unique scientific exercise serving the combined national objectives of reducing desertification and providing livelihood and multi-disciplinary rural industry support.
- 5000 saplings of special bamboo species: Bambusa-Tulda and Bambusa-Polymorpha specially brought from Assam – have been planted over 25 bigha (16 acres approx) of vacant arid Gram Panchayat land.
- KVIC has thus created a world record of planting the highest number of bamboo saplings on a single day at one location.
Why Bamboo?
- KVIC has judiciously chosen bamboo for developing green patches.
- Bamboos grow very fast and in about three years’ time, they could be harvested.
- Bamboos are also known for conserving water and reducing evaporation of water from the land surface, which is an important feature in arid and drought-prone regions.
Significance of the move
- The project will help in reducing the land degradation percentage of the country, while on the other hand, they will be havens of sustainable development and food security.
- The bamboo plantation program will boost self-employment in the region.
- It will benefit a large number of women and unemployed youths in the region by connecting them to skill development programs.
Answer this PYQ in the comment box:
Q. Consider the following statements:
- As per recent amendment to the Indian Forest Act, 1927, forest dwellers have the right to fell the bamboos grown on forest areas.
- As per the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, bamboo is a minor forest produce.
- The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 allows ownership of minor forest produce to forest dwellers.
Which of the statements given above is/are correct? (CSP 2019)
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Back2Basics: Bamboo in India
- Bamboos are tall treelike grasses.
- With an amendment in 2017 in the Indian Forest Act 1927, the Bamboo has ceased to be a tree anymore.
- Earlier, the definition of tree in the law included palm, bamboo, brushwood and cane.
- The move aims to promote cultivation of bamboo in non-forest areas to achieve the “twin objectives” of increasing the income of farmers and also increasing the green cover of the country.
- Bamboo grown in the forest areas would continue to be governed by the provisions of the Indian Forest Act.
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From UPSC perspective, the following things are important :
Prelims level: BITs
Mains level: Paper 3- Honouring the adverse international judicial ruling in dispute with investors
The article highlights the lack of immediate compliance by the Indian government in awards involving foreign investors.
Why honouring award is important
- An important factor that propels investors to invest in foreign lands is that the host state will honour contracts and enforce awards even when it loses.
- But when the host state refuses to do so, it shakes investors’ confidence in the host state’s credibility towards the rule of law, and escalates the regulatory risk enormously.
- To an extent, this has been India’s story over the last few years
- Last year, India lost two high-profile bilateral investment treaty (BIT) disputes to two leading global corporations — Vodafone and Cairn Energy — on retrospective taxation.
- India has challenged both the awards at the courts of the seat of arbitration.
- As India drags its feet on the issue of compliance, it harms India’s reputation in dealing with foreign investors.
Antrix-Devas agreement cancellation dispute
- The other set of high-profile BIT disputes involve the cancellation of an agreement between Antrix, a commercial arm of the Indian Space Research Organisation, and Devas Multimedia.
- This annulment led to three legal disputes — a commercial arbitration between Antrix and Devas Multimedia at the International Chambers of Commerce (ICC), and two BIT arbitrations brought by the Mauritius investors and German investors.
- India lost all three disputes.
- The ICC arbitration tribunal ordered Antrix to pay $1.2 billion to Devas after a U.S. court confirmed the award earlier this year.
- After the ICC award, Indian agencies started investigating Devas accusing it of corruption and fraud.
- Last month, the National Company Law Tribunal (NCLT) ordered the liquidation of Devas on the ground that the affairs of the company were being carried on fraudulently.
- This has led to Devas issuing a notice of intention to initiate a new BIT arbitration against India, sowing the seeds for complex legal battles again.
Implications for investment in India
- A closer reading of these cases reveals that whenever India loses a case to a foreign investor, immediate compliance rarely happens.
- Instead, efforts are made to delay the compliance as much as possible.
- While these efforts may be legal, it sends out a deleterious message to foreign investors.
- It shows a recalcitrant attitude towards adverse judicial rulings.
- This may not help India in attracting global corporations to its shores to ‘make for the world’.
Consider the question “What are the factors that are leading to more Indian business disputes being settled elsewhere? What are the implications of delay by the government in honouring the awards of the disputes?”
Conclusion
As India aspire to be the global destination of FDI, it needs to burnish its image on the dispute resolution front by honouring the awards.
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From UPSC perspective, the following things are important :
Prelims level: GST
Mains level: Success oof the GST regime
The Prime Minister has lauded Goods and Services Taxes (GST) on its completion of 4 years and said it has been a milestone in the economic landscape of India.
What is GST?
- GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
- The Goods and Service Tax Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017. It is a single domestic indirect tax law for the entire country.
- It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
- Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.
Answer this PYQ in the comment box:
Q.All revenues received by the Union. Government by way of taxes and other receipts for the conduct of Government business are credited to the (CSP 2015):
(a) Contingency Fund of India
(b) Public Account
(c) Consolidated Fund of India
(d) Deposits and Advances Fund
What are the components of GST?
There are three taxes applicable under this system:
- CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra)
- SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra)
- IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu)
Advantages Of GST
- GST has mainly removed the cascading effect on the sale of goods and services.
- Removal of the cascading effect has impacted the cost of goods.
- Since the GST regime eliminates the tax on tax, the cost of goods decreases.
- Also, GST is mainly technologically driven.
- All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes.
Issues with GST
- High operational cost
- GST has given rise to complexity for many business owners across the nation.
- GST has received criticism for being called a ‘Disability Tax’ as it now taxes articles such as braille paper, wheelchairs, hearing aid etc.
- Petrol is not under GST, which goes against the ideals of the unification of commodities.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- How India can avoid the middle income trap
The article suggests focusing on improving productivity and thereby the manufacturing sector to avoid the middle-income trap.
What is the middle-income trap and why it matters for India
- This trap was first conceived by World Bank economists.
- They found that of the 101 developing economies that could be classified as ‘middle income’ in 1960, only 13 managed to become rich nations by 2008.
- There is little consensus on why some countries succeed in making the transition to high-income status.
- But a distinctive attribute of those that succeed in the transition to high income is productivity improvement.
- India could use its demographic dividend to avoid this predicament and achieve the critical velocity needed to move into the high-income bracket.
How can India avoid the middle-income trap
1) Improve productivity
- Re-allocation of labour from low-productivity agriculture to high-productivity sectors, such as manufacturing, has been a primary channel through which today’s advanced economies raised their living standards.
- In India, growth in labour productivity has consistently declined over the past decade.
- The annual growth rate of output per worker has dipped from 7.9% in 2010 to 3.5% in 2019, as per International Labour Organization estimates.
- This was also a period of low growth in India’s manufacturing sector.
- In 2020-21, it accounted for only 14.5% of India’s gross value added, down from 17.4% in 2011-12.
- An essential first step in improving productivity would be strengthening this sector.
2) Strengthen manufacturing sector
- Industrial labour relations is among the most critical elements to revitalize India’s manufacturing sector especially in the context of labour productivity.
- These labour laws created incentives for firms to remain small and uncompetitive, thereby affecting productivity.
- The new code, once implemented, would increase the threshold relating to layoffs and retrenchment in industrial establishments to 300 workers.
- Other countries, such as China, Vietnam and Bangladesh, with whom India competes for foreign investment and export markets do not require the approval of administrative or judicial bodies for dismissals.
- Therefore, in spite of recent reforms, India’s labour laws stay rigid in comparison with those of its competitor countries.
3) Technology intensive manufacturing
- Engendering innovation in higher value-added, tech-intensive activities is important for economies before they reach that juncture.
- If exports are taken as a proxy for the manufacturing capabilities and competitiveness of an economy, the present status of tech-intensive manufacturing in India leaves a lot to be desired.
- As per World Bank data, high-tech exports accounted for only 10.3% of India’s manufacturing exports in 2019.
- Rival countries had a much higher share of the same: 31% in China, 13% in Brazil, 40% in Vietnam and 24% in Thailand.
- Low R&D spending in India, ranging from a mere 0.64% to 0.86% of gross domestic product over the past two decades, has held the country back.
Steps to improve tech-intensive manufacturing
- The government has introduced a production-linked incentive scheme to ensure a greater share of local value addition.
- While this would attract foreign investments in tech-intensive manufacturing, there is also a need for greater incentives for R&D investments by firms in India.
- A first step in this direction could be reinstating the tax exemption on R&D under Section 35 (2AB), even for companies opting for the lower corporate tax rate of 22%.
Conclusion
We need appropriate interventions to improve productivity—both economy-wide and within the sector. And we must do it now.
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From UPSC perspective, the following things are important :
Prelims level: Article 239AA and 239AB
Mains level: Paper 2- Effect of GNCTD (Amendment) Act on functioning of Delhi Assembly
The article highlights the implications of the Government of National Capital Territory of Delhi (GNCTD)(Amendment) Act, 2021 on functioning of Assembly and its committees.
Context
The Government of National Capital Territory of Delhi (GNCTD)(Amendment) Act, 2021 has been criticised as a retrograde law. However, what deserves equal attention is the Act’s assault on the functioning of Delhi’s Legislative Assembly.
Background of GNCTD Act
- The GNCTD Act was enacted in 1992.
- Under the Act, Delhi Legislative Assembly was given the power to regulate its own procedure, as well as the conduct of its business.
- This sought to realise a delicate balance reflecting Delhi’s unique constitutional position: neither full state nor a centrally governed Union Territory.
How amendment affects functioning of Assembly
- Its standards of procedure and conduct of business have been firmly tethered to that of the Lok Sabha, depriving Delhi’s elected MLAs of an effective say in how their Assembly should be run.
- The Amending Act prohibits the Assembly from making any rule enabling either itself or its committees to consider any issue concerned with “the day-to-day administration of the capital” or “conduct inquiries in relation to administrative decisions”.
- The most significant impact of this shall be on the exercise of free speech in the Assembly and its committees.
- The amendment impeded the Assembly from performing its most basic legislative function — that of holding the executive to account by restricting its ability to freely discuss matters happening in the capital.
Impact on committees
- The deliberations and inputs of committees often pave the way for intelligent legislative action.
- In a way, they act as the eyes and ears for the whole House, which has neither the time nor the expertise to scrutinise issues in depth.
- It would be impossible for committees to perform this function without the power to conduct inquiries.
- Pre-emptively injunct a committee from conducting an inquiry “in relation to the administrative decisions” (an extremely broad exception) completely negates the ability of committees to function effectively as the Assembly’s advisors and agents.
- The quality of legislative work emanating from the Assembly is thus ultimately bound to suffer.
Consider the question “What are the reasons for frequent disputes between Delhi government and the Lt. Governor? Would the Government of National Capital Territory of Delhi (GNCTD)(Amendment) Act, 2021 succeed in ending that trend?”
Conclusion
The amendment deprive the Delhi Assmbly of its very basic functions and render it a ‘legislature’ in name only. Surely, Delhi’s voters deserve better than that. The Government need to reconsider the provisions of the amendment act.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Costs of cleaner energy alternatives
It Matters How the Electricity Is Made
- Among the many drivers of global warming, electricity generation/consumption and transportation of people and goods have been identified as two important drivers which contribute almost 50% to the emissions load.
- Against this backdrop, two non-food or agriculture technologies that have been projected and implemented as ‘clean alternatives’ to mitigate the global warming phenomenon are:
- Solar photovoltaics for electricity generation
- Electrification of transport
Cleanliness of these alternatives
- There is a general propensity to push these two alternatives in terms of energy and financial return on investments but very little is being said upfront about environmental cost and effect.
- Both these technologies indeed lead to significantly reduced emissions after they are implemented.
- The catchphrase here, however, is after!
- There is little information or discussion in the public domain about upfront environmental cost as it is an inconvenient truth that cannot be wished away.
Why aren’t they clean
- Prior to their implementation, a lot of different human-made materials have to be synthesized from naturally occurring raw materials.
- Then, these have to be put together as a functioning unit or a device for a specific purpose.
- These processes, unfortunately, are both energy- and emissions-intensive and to realise the extent of these intensities, one needs to go behind the scene.
Critical analysis
[1] Solar energy
- The dominant market player in the field of solar energy conversion to electricity is silicon-based modules occupying more than 90 per cent of the installed capacity.
- These modules are made of elements as well as inorganic and organic compounds such as silicon, aluminum, copper, silver, glass, epoxy, plastics and are generally installed using steel and concrete.
- All these materials are human-made and hence need to be synthesized utilizing naturally occurring raw materials.
- These synthesis processes are energy- and water-consuming and emit greenhouse gasses and pollutants into the atmosphere — dark horses in the chain of realization of solar energy conversion to electricity.
- Information regarding the environmental costs of these processes is not extensively mentioned in the public domain except for a few occasional studies.
- These studies indicate that the CO2(e) gasses emission due to solar panel manufacturing alone is about 2,560 kg per kilowatt of installed capacity, which is quite significant.
[2] Electrification of transportation
- This involves the substitution of current petrol, diesel and gas combustion-powered engines in automobiles with electric engines.
- The two main components of such an automobile, therefore, are: the engine which converts electrical energy to propulsion and a battery.
- The electric engine or motor has been known for a long time but for the above application, it needs to have high energy density along with being compact and lightweight.
- This can be accomplished by using what is known as ‘rare earth’ magnets which require extensive mining and processing which are environmentally intensive activities.
- A closer look at the Li-ion battery shows that it requires a 40-kilowatt-hour battery and putting together such a battery results in releasing about 3,000 Kg of CO2(e) gasses into the
The Indian scenario
After looking at the behind-the-scenes emissions scenario of the two technologies, let us put Indian goals into perspective with respect to these two technologies.
Solar energy
- It was recently announced that India will have an installed capacity of 100 gigawatt (GW) for electricity generation by solar photovoltaics by the year 2022.
- This will mean gaseous emissions to the tune of 0.256 GTons of CO2(e) for manufacturing of solar panels, which is a staggering amount from this activity alone.
- It should be noted here that installation of 100 GW electrical power generation plants will actually result in only 25 GW of usable electricity at best, assuming an efficiency of 25 per cent, which itself is quite high.
- If, on the other hand, we would like to have 100 GW of usable electrical power being generated by solar photovoltaics, it will result in emissions to the tune of 1.024 GTons of CO2(e), which is enormous.
- This is an upfront loading of the environment with greenhouse gasses gases and excludes the embodied carbon in batteries, inverters, junction boxes, wiring and so on.
Electric automobiles
- The Union transportation minister has recently announced that India will become the largest manufacturer of electric vehicles and Li-ion batteries will be manufactured in India within the next six months.
- To replace about a million conventional fuel-based vehicles (a fraction of the existing vehicles), it will result in upfront loading to the tune of 3 MTons of CO2(e) greenhouse gasses, just due to the battery assembly process alone.
- The environmental costs due to electric motor manufacturing, mining of raw materials required for the battery and generation of electricity to run these million electric automobiles will be additional.
- In both cases, the water requirement and particulate emissions have not been included, both of which are strongly linked to ecology and the environment.
Conclusion
- It is very clear from the two technologies and the related national goals that huge environmental, human, as well as economic costs, need to be paid upfront to realise these goals.
- The task becomes even more daunting as the infrastructure required to make either solar grade Si or for that matter put together a million Li-ion batteries is non-existent at present.
- In light of these facts, it becomes imperative to realign goals and prioritize steps to be taken to alleviate the problem of emissions and the associated global warming.
Way forward
- It is important to try various less harmful alternatives.
- On another note, it is time to legislate so that businesses will also include the costs of atmospheric pollution together with their profit and loss statements.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Rooftop Rain Water Harvesting
India’s rapid urban growth is expected to stress its already crumbling base of public service arrangements — especially its management of water and sanitation services, whose safe and reliable availability proved to be the first line of defence against this covid pandemic.
Q.Discuss how Rooftop rainwater harvesting can ease India’s water woes? (150W)
Rooftop Rain Water Harvesting
- It is the technique through which rainwater is captured from the roof catchments and stored in reservoirs.
- Harvested rainwater can be stored in sub-surface groundwater reservoirs by adopting artificial recharge techniques to meet the household needs through storage in tanks.
- Capturing and storing rainwater for use is particularly important in dryland, hilly, urban and coastal areas.
- It holds the potential to support the country’s preparedness against the incipient challenges of changing climate.
Water stress in India
- An appalling confusion grips our policy makers and planners.
- While the supply-demand gap is expected to widen by 50 per cent by 2030, many are still left without access to safe and sustainable water and sanitation services.
- At least five Indian cities are already reported to have joined the list of world’s 20 largest water-stressed cities.
If we look at the present portfolio of water resources management for other cities, it will not be wrong to claim that many more will soon become qualified for joining this infamous list.
Exploring the complex problems
- Water availability in India remains at the mercy of erratic patterns of precipitation.
- Concretization of urban landscapes, symbolic of modern town planning imaginaries as to what an exercise in urban development has led to floods worsening.
- Illegal encroachment along stormwater drains and urban rivers also aggravates the situation, not least by opening up spaces of active political contestation and negotiations.
A paradigm shift needed
- In India, management of water was bundled as part of the prerogative claims of post-independent public institutions with public participation programs designed later on to serve only a placatory function.
- This has led to the systematic exclusion of the public’s opinions in informing the design and implementation protocols of large public schemes.
- It took the form of multi-purpose dams, irrigation canals, public water distribution systems, etc.
- Despite this, India has now become a ‘water-stressed country.
A newer approach
- Rising national empathy for river rejuvenation, watershed conservation and active public participation has, on the other hand, already started scripting a new paradigm for India’s water management.
- It prompts decision-makers to look for solutions in the collective efforts of the citizens in managing their issues locally.
Right from the vedic times
- Our Vedic ancestors, in their appreciation of the timeless bounty of water, always offered timely obeisance to water’s eternal gifts to mankind.
- Their reverence to water can be found in the hymns and prayers offered to Varuna and Indra — Vedic Gods associated with water to riveting architectural gems and literary delights, each underscoring the centrality of water in our cultural revelries.
- It is time our policies are re-designed to reflect these values.
Empowering people
- Rooftop rainwater structures are perfectly poised to engender a transformative wave of public engagement in water management.
- Thus it can act as a corollary for making water management an exercise in nurturing democratic routines.
- To ensure that the public enthusiastically purchases this concept, a country-wide behaviour change campaign can be launched along the lines of the Swachh Bharat Mission.
- This can emphasize people’s ‘ability and ‘motivation’ to romantically welcome these structures in their private premises.
- This should rather be a ‘do-it-yourself’ model of engagement.
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From UPSC perspective, the following things are important :
Prelims level: LEAF Coalition
Mains level: Not Much
At the recently concluded Leaders’ Summit on Climate in April 2021, the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition was announced.
LEAF Coalition
- LEAF Coalition is a collective of the US, UK and Norway governments.
- It is a public-private effort, thus supported by transnational corporations (TNCs) like Unilever plc, Amazon, Nestle, Airbnb etc.
- It came up with a $1 billion fund plan that shall be offered to countries committed to arresting the decline of their tropical forests by 2030.
- The LEAF coalition initiative is a step towards concretizing the aims and objectives of the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism.
How does this coalition work?
- The LEAF Coalition can help reverse the trend by providing unprecedented financial support to tropical forest governments implementing forest protection, contributing to green and resilient growth through sustainable investments.
- It empowers tropical and subtropical forest countries to move more rapidly towards ending deforestation while supporting them in achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement.
- Reductions in emissions are made across entire countries or large states and provinces (“jurisdictions”) through programs that involve all key stakeholders, including Indigenous peoples and local communities.
Why is it significant?
- Financial impetus is crucial as it incentivizes developing countries to capture extensive deforestation and provide livelihood opportunities to forest-dependent populations.
- The initiative comes at a crucial time when the tropics have lost close to 12.2 million hectares (mha) of tree cover year last year according to global estimates released by Global Forest Watch.
- Most of these lost forests were located in the developing countries of Latin America, Africa and South Asia.
- India’s estimated loss in 2020 stands at 20.8-kilo hectares due to forest fires
What lies next?
- Implementation of the LEAF Coalition will help pump in fresh rigour among developing countries like India, that are reluctant to recognize the contributions of their forest-dwelling populations in mitigating climate change.
- With the deadline for proposal submission fast approaching, India needs to act swiftly on a revised strategy.
- Although India has pledged to carry out its REDD+ commitments, it is impossible to do so without seeking knowledge from its forest-dwelling population.
Answer this PYQ in the comment box:
With reference to ‘Forest Carbon Partnership Facility’, which of the following statements is/ are correct? (CSP 2013)
- It is a global partnership of governments, businesses, civil society and indigenous peoples.
- It provides financial aid to universities, individual scientists and institutions involved in scientific forestry research to develop eco-friendly and climate adaptation technologies for sustainable forest management.
- It assists the countries in their ‘REDD+ (Reducing Emissions from Deforestation and Forest Degradation+)’ efforts by providing them with financial and technical assistance.
Select the correct answer using the code given below:
(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Back2Basics: REDD+
- REDD+ is a mechanism developed by Parties to the United Nations Framework Convention on Climate Change (UNFCCC).
- It creates a financial value for the carbon stored in forests by offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development.
- Developing countries would receive results-based payments for results-based actions.
- REDD+ goes beyond simply deforestation and forest degradation and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks.
- It aims to create incentives for communities so that they stop forest degrading practices.
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From UPSC perspective, the following things are important :
Prelims level: Global Minimum Tax, BEPS
Mains level: Global Minimum Tax Debate
India has joining the OECD-G20 framework for a global minimum tax.
Must read
What is Global Minimum Corporate Tax?
What is this tax deal?
- The proposed solution consists of two components:
- Pillar One is about the reallocation of an additional share of profit to the market jurisdictions and
- Pillar Two consists of minimum tax and subject to tax rules
- Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed.
- Further, the technical details of the proposal will be worked out in the coming months and a consensus agreement is expected by October.
Why did India join?
- The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets, consideration of demand-side factors in profit allocation.
- There is a need to seriously address the issue of cross border profit shifting and need for the subject to tax rules to stop treaty shopping.
- India is in favour of a consensus solution that is simple to implement and simple to comply with.
- At the same time, the solution should result in the allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies.
What is Base Erosion and Profit Shifting (BEPS)?
- BEPS refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions.
- It thus “erodes” the “tax base” of the higher-tax jurisdictions.
- Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven.
- It is alleged that BEPS is associated mostly with American technology and life science multinationals.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Stock market and risks involved for individual investors
Despite gloom in the economy, financial markets are scaling new highs. The situations calls for diligence on the part of individual investors. The deals with this issue.
What influences investors’ decision
- Investors may not necessarily be always sensible or even capable of perceiving the larger picture.
- Nobel laureate Daniel Kahneman argues that humans usually use the ‘first system’ of ‘fast thinking’ to hurriedly act and perceive their environment.
- Consequently, they are susceptible to the ‘priming effect’, ‘framing bias’, ‘anchoring effect’, ‘overconfidence bias’ and ‘availability heuristic’.
- These phenomena, thus, play their part in pervading optimistic market conditions.
- As a result, investors often end up ignoring or overlooking uncertainties and risks involved in their decision.
- At the same time, investors’ decision choices could be significantly influenced by ‘nudging’.
- It is a deliberate tactics and method of behaviour modification by which it is the ‘choice architect’ that decides who does what and who does so, as argued by the Nobel laureate, Richard H. Thaler.
- The present surge in the Indian stock market is indeed nudging individual investors to trade more.
What makes individual investors vulnerable
- National Stock Exchange data indicate following trends:
- The share of the non-institutional individual investors in equity trading volume has risen to one half of the total turnover. in 2021.
- It was around a third in 2016.
- In contrast, the share of Foreign Institutional Investors (FIIs) in the total trading volume has shrunk to just about a tenth, it used to be one fifth in 2016.
- Trading in the stock market, the sudden rise, the intraday moves, etc., are, thus, attributable largely to individual traders now.
- However, despite their large trading volumes, individual investors have actually contracted their holding of the market capitalisation.
- The FIIs currently own around half of the free float of all Indian companies.
- Apparently, the retail investors have constantly sold their stake to end up holding less than 20% shares now.
- Trading, thus, seems to be the mainstay of retail investors and this is what makes them more vulnerable to the vagaries of the market.
Market is ignoring macroeconomic factors
- Centre for Monitoring Indian Economy Pvt. Ltd. data of the listed companies reveal a rise in their profit, due to rationalisation and cost-cutting.
- Investors might be tempted to ignore macroeconomic factors and invest in such stock believing that it is the profit that impels the stock prices.
- In reality, however, share price is expected to ascend if a company declares to cut its wage bill.
- This probably explains why stock markets around the world have been on the rise amidst the novel coronavirus pandemic; demand may have declined but profits have been least impacted.
- At the larger economic level, however, real wages have plunged.
- Clearly, the market has not entirely decoupled itself from the economic indicators.
- Established wisdom suggests that corporates cannot sustain contraction in the economy for long.
- Sustained decline in demand caused by waning disposable household income would catch them soon.
- Robert J. Shiller attributes this phenomenon of creating a possible bubble to irrational exuberance.
- When bubbles burst, they cause a kind of financial earthquake, in turn destabilising public trust in the integrity of the financial system.
- Critically, as the past portrays, individual investors, with all their vulnerabilities, suffer the most devastating consequences.
- Retail investors are as well susceptible to overreaction when negative news hits the market.
Consider the question “What are the factors driving the financial markets up despite the weak macroeconomic foundations? What are the risks involved in such situation for the individual investors?”
Conlcusion
History of financial markets is replete with bubbles and bursts. Most affected in such burst are the individual investors. Informed decisions based on information and risks involved should form the basis of investment by individual investors.
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From UPSC perspective, the following things are important :
Prelims level: What is rule of law?
Mains level: Paper 2- Rule of law and role of judiciary
What makes the Rule of Law different from the Rule by Law? It is the idea of justice and equity that separates the two. The article explains the principles that emerge as the basis of the Rule of law and the role of the judiciary in ensuring their constitutionality.
Understanding law
- Law, in its most general sense, is a tool of social control that is backed by the sovereign.
- However, such a definition of law can be used not only to render justice, it can also be used to justify oppression.
- Therefore it is argued that a law cannot really be classified as a “law” unless it imbibes within itself the ideals of justice and equity.
- So, any law backed by a sovereign must be tempered by certain ideals or tenets of justice.
- Only a state that is governed by such law, can be said to have the Rule of Law.
- The British colonial power used the law as a tool of political repression, enforcing it unequally on the parties, with a different set of rules for the British and for the Indians.
- It was an enterprise famous for “Rule by Law”, rather than “Rule of Law.
Four principles of rule of law
- Clarity and accessibility: Laws must be clear and accessible, the people at least ought to know what the laws are.
- Another implication of this principle is that they should be worded in simple, unambiguous language.
- Equality: An important aspect of equality before law is having equal access to justice.
- This guarantee of equal justice will be rendered meaningless if the vulnerable sections are unable to enjoy their rights because of their poverty or illiteracy or any other kind of weakness.
- Another aspect is the issue of “gender equality”.
- Participation of people: The third principle, the “right to participate in the creation and refinement of laws”.
- The very essence of a democracy is that its citizenry has a role to play, directly or indirectly, in the laws that govern them.
- In India, it is done through elections.
- The idea that people are the ultimate sovereign is also to be found in notions of human dignity and autonomy
- Strong independent judiciary: The fourth principle stemsp from the idea that the judiciary is the “guardian” of the Constitution.
- The judiciary is the primary organ which is tasked with ensuring that the laws that are enacted are in line with the Constitution.
Independent judiciary and role of media
- The judiciary cannot be controlled, directly or indirectly, by the legislature or the executive, or else the Rule of Law would become illusory.
- At the same time, judges should not be swayed by the emotional pitch of public opinion either, which is getting amplified through social media platforms.
- Judges have to be mindful of the fact that the noise thus amplified is not necessarily reflective of what is right and what the majority believes in.
- Therefore, media trials cannot be a guiding factor in deciding cases.
- It is, therefore, extremely vital to function independently and withstand all external aids and pressures.
- While there is a lot of discussion about the pressure from the executive, it is also imperative to start a discourse as to how social media trends can affect the institutions.
Conclusion
The importance of the judiciary shouldn’t blind us to the fact that the responsibility of safeguarding constitutionalism lies not just with the courts. All the three organs of the state, i.e., the executive, legislature and the judiciary, are equal repositories of constitutional trust.
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From UPSC perspective, the following things are important :
Prelims level: Heat Dome
Mains level: Rising events of heatwave
A US city has recorded the highest temperatures as high as 46-degree Celsius part due to the historic heatwave that lasted as a result of a phenomenon referred to as a “heat dome”.
What is a Heat Dome?
- To understand what causes a heat dome, one should liken the Pacific Ocean to a large swimming pool in which the heater is turned on.
- Once the heater is on, the portions of the pool close to the heating jets will warm up faster and therefore, the temperature in that area will be higher.
- In the same way, the western Pacific ocean’s temperatures have increased in the past few decades and are relatively more than the temperature in the eastern Pacific.
- This strong change in ocean temperature from the west to the east is what a team of scientists believe is the reason for the heat dome.
- This occurs when the atmosphere traps heat at the surface, which encourages the formation of a heatwave.
- To compare, the reason that the planet Venus is the hottest in the Solar System is that its thick, dense cloud cover traps the heat at the surface, leading to temperatures as high as 471 degrees Celsius.
Is this heat wave a result of climate change?
- It cannot be said for sure if the heatwave is a direct result of global warming.
- Scientists are usually wary of linking climate change to any contemporary event mainly because of the difficulty in completely ruling out the possibility of the event having been caused by some other reason.
- Similarly, scientists who have been studying the climate tend to agree that the heat waves occurring today are more likely to be a result of climate change for which humans are responsible.
Answer this PYQ in the comment box:
Q.Consider the following statements:
- Jet streams occur in the Northern Hemisphere only.
- Only some cyclones develop an eye.
- The temperature inside the eye of a cyclone is nearly 100C lesser than that of the surroundings.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1 and 3 only
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From UPSC perspective, the following things are important :
Prelims level: Purchasing Managers’ Index
Mains level: India's manufacturing slowdown
India’s manufacturing industry has slid back to a decline in June, as per the IHS Markit Manufacturing Purchasing Managers’ Index (PMI).
Purchasing Managers’ Index
- PMI is an indicator of business activity — both in the manufacturing and services sectors.
- It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
- The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
How is the PMI derived?
- The PMI is derived from a series of qualitative questions.
- Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
How does one read the PMI?
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.
What are its implications for the economy?
- The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
- It is, therefore, considered a good leading indicator of economic activity.
- Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
- Central banks of many countries also use the index to help make decisions on interest rates.
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From UPSC perspective, the following things are important :
Prelims level: Global Cybersecurity Index
Mains level: Cyber security challenges for India
India has made it to the top 10 in Global Cybersecurity Index (GCI) 2020 by ITU, moving up 37 places to rank as the tenth best country in the world on key cybersafety parameters.
Global Cybersecurity Index
- GCI assessment is done on the basis of performance on five parameters of cybersecurity including legal measures, technical measures, organizational measures, capacity development, and cooperation.
- The performance is then aggregated into an overall score.
- For each of the five aspects, all the countries’ performance and commitment are assessed through a question-based online survey, which further allowed for the collection of the supporting evidence.
India’s progress
- As per the ranking, India has moved up by 37 places to rank as the tenth best country in the world.
- The US topped the chart, followed by the UK and Saudi Arabia tied on the second position, while Estonia was ranked third in the index.
- India has also secured the fourth position in the Asia Pacific region, underlining its commitment to cybersecurity.
Its significance
- The affirmation by the UN body of India’s efforts on cybersecurity comes just ahead of the sixth anniversary of Digital India on July 1.
- India is emerging as a global IT superpower, asserting its digital sovereignty with firm measures to safeguard data privacy and online rights of citizens.
Back2Basics: International Telecommunication Union
- ITU is the United Nations specialized agency for information and communication technologies – ICTs.
- Founded in 1865 to facilitate international connectivity in communications networks. It is Headquartered in Geneva, Switzerland.
- It allocates global radio spectrum and satellite orbits, develops the technical standards that ensure networks and technologies seamlessly interconnect, and strives to improve access to ICTs to underserved communities worldwide.
- Recently, India got elected as a member of ITU Council for another 4-year term – from 2019 to 2022. India has remained a regular member since 1952.
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