Note4Students
From UPSC perspective, the following things are important :
Prelims level: FRBM Act
Mains level: Paper 2- Freebies and related issues
Context
In a recent address, the prime minister shared his anguish on what he called the “revdi” or the freebies culture.
Populist policies and its impact over the states’ finances
- What are freebies? N K Singh defined freebies as “something that is given to you without having to pay for them, especially as a way of attracting your support for or interest in something.”
- A recent report of the RBI on states’ finances highlighted the perilous condition of states’ finances and enhanced debt stress on account of flawed policies.
- Nothing undercuts more irresponsibly India’s abiding international and national commitments than the perils of this reckless populism.
Factors that need to be considered in devising welfare policies
1] Quest for sustainable development
- The initiatives undertaken at COP21 in Paris, the International Solar Alliance and subsequently at the COP26 in Glasgow represent India’s national consensus to forge a path of growth geared towards intergenerational equity and to exponentially increase development.
- Our ability to adhere to this commitment depends on two other commitments.
- 1] An increase in the percentage of renewable energy in our energy consumption.
- While subsidies are being promised in one form or the other by way of free electricity, the deteriorating health of state distribution companies seriously undercuts their financial viability.
- Lowering the price for some consumers, offset through overcharging industrial and commercial contracts, reduces competitiveness, ushers slower growth both in incomes and employment.
- 2] The inability of discoms to actively encourage solar power is stymied by their financial condition and the inability to evolve tariff structures.
- Regulatory capture, a fixation on unrealistic tariffs and cross-subsidy in energy utilisation prevent a credible coal plan, which is central to our energy planning.
2] Challenges in providing basic facilities
- The government seeks to address the challenge of inequity by ensuring access to a wide range of basic facilities.
- These include banking, electricity, housing, insurance, water and clean cooking fuel, to mention a few.
- Removing this inequity to access helps boost the productivity of our population.
3] Issue of access
- Benefits under various welfare schemes such as PM Awas Yojana, Swachh Bharat Mission and Jal Jeevan Mission have eliminated the biggest barrier for citizens — the exorbitant upfront cost of access.
- Moreover, they are leading to irreversible empowerment and self-reliance.
- For instance, a house built under the PM Awas Yojana is a lifelong asset for the beneficiary household that cannot be taken back by any government.
4] Use of technology in direct benefit transfer
- Identification of beneficiaries through the SECC and prioritisation based on deprivation criteria has enabled the government to assist those who need it the most.
- Governments that end up taking the shortcut of universal subsidies or freebies often end up ignoring the poor and transferring public resources to the affluent.
5] Expenditure prioritisation
- The next issue that needs to be considered is of expenditure prioritisation being distorted away from growth-enhancing items, leading to intergenerational inequity.
- Investors, both domestic and foreign, and credit rating agencies look to macro stability in terms of sustainable levels of debt and fiscal deficit.
- After years of fiscal profligacy, we returned to the path of fiscal rectitude in 2014.
- The last time such an effort was made was by enacting the first FRBM Act on August 26, 2003.
6] Impact on future of manufacturing and employment
- The next factor that need to be considered is the debilitating effect of freebies on the future of manufacturing and employment.
- Freebies lower the quality and competitiveness of the manufacturing sector by detracting from efficient and competitive infrastructure.
- They stymie growth and, therefore, gainful employment because there is no substitute for growth if we wish to increase employment.
Conclusion
The poor state finance position should serve as a timely reminder to those promising fiscally imprudent and unsustainable subsidies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GDP
Mains level: Paper 3- Need for overhaul of India's economic performance measurement framework
Context
It is then apparent that GDP growth matters to the average Indian only if it can generate good quality jobs and incomes for them.
Background
- Nobel laureate Simon Kuznets, who conceived of GDP as a measure of economic performance, never intended it to be the single-minded economic pursuit for a nation that it has now become, and warned repeatedly that it is not a measure of societal well-being.
- Irrefutably, GDP is an elegant and simple metric that is a good indicator of economic progress which can be compared across nations.
- But a compulsive chase for GDP growth at all costs can be counter-productive, since it is not a holistic but a misleading measure.
- The excessive obsession over GDP growth by policymakers and politicians can be unhealthy and dangerous in a democracy.
- If growth in GDP does not translate into equivalent economic prosperity for the average person, then in a one person-one vote democracy, exuberance over high GDP growth can backfire and trigger a backlash among the general public.
- Global phenomenon: Sri Lanka’s mass uprising and people’s revolution can partly be explained through this prism of the structural break between headline GDP growth and economic prosperity for the people.
- The U.S. today produces fewer new jobs for every percentage point of GDP growth than it did in the 1990s.
- China produces one-third the number of new jobs today than it did in the 1990s for every percentage of its GDP growth.
Employment intensity of economic growth
- Data of ‘employment in public and organised private sectors’ published by the Reserve Bank of India (RBI) shows that in the decade between 1980 and 1990, every one percentage point of GDP growth (nominal) generated roughly two lakh new jobs in the formal sector.
- In the subsequent decade from 1990 to 2000, every one percentage point of GDP growth yielded roughly one lakh new formal sector jobs, half of the previous decade.
- In the next decade between 2000 and 2010, one percentage point of GDP growth generated only 52,000 new jobs.
- The RBI stopped publishing this data from 2011-12.
- In essence, one percentage of GDP growth today yields less than one-fourth the number of good quality jobs that it did in the 1980s.
- It is amply clear that the correlation between formal sector jobs and GDP growth has weakened considerably.
Implications of decline in GDP growth’s contribution to job creation
- Irrelevant as a political measure: GDP growth may be an important economic measure, but it is becoming increasingly irrelevant as a political measure, since it impacts only a select few and not the vast majority.
- Indicates changed nature of economic development: This divorce of GDP growth and jobs is both a reflection of the changed nature of contemporary economic development with emphasis on capital-driven efficiency at the cost of labour and GDP being an inadequate measure.
- Political backlash: The perils of the obsession over GDP growth will be felt by politicians who have to answer voters on lack of jobs and incomes despite robust headline growth.
- Voter disenchantment over the economy not working for them is already rife in many democracies across the world that have catalysed agitations and social disharmony.
- Electoral outcomes in favour of extreme positions in mature democracies such as the U.S., the U.K., France and Germany in the last decade may partly be a reflection of voters’ sense of deception over economic gains.
Way forward
- It is time for India’s political leaders to not be drawn into argument over GDP growth every quarter and instead clamour for an overhaul of India’s economic performance measurement framework to reflect what truly matters to the common person.
Conclusion
GDP growth has turned into a misleading and dangerous indicator that portrays false economic promises, betrays people’s aspirations and hides deeper social problems.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IBC
Mains level: Paper 3- Point of trigger for insolvency
Context
In the recent judgement the Supreme Court held that the National Company Law Tribunal (NCLT) cannot admit an insolvency application filed by a financial creditor merely because a financial debt exists and the corporate debtor has defaulted in its repayment.
Why the point of trigger is important in insolvency law
- A critical element for any corporate insolvency law is the point of trigger.
- The law must clearly provide the grounds on which an insolvency application against a corporate debtor should be admitted.
- If there is any confusion at this stage, precious time could be wasted in litigation.
- That would cause value destruction of the distressed business.
- On the other hand, if the law is clear and litigation can be minimised, the distressed business could be resolved faster.
- Its value could be preserved.
- And all stakeholders collectively would benefit.
- Evidently, objective legal criteria for admission are critical for an effective corporate insolvency law.
Determining insolvency and implications of the SC ruling
- The balance-sheet test is one method for determining insolvency at the point of trigger.
- This test, however, is vulnerable to the quality of accounting standards.
- That’s why the Bankruptcy Law Reforms Committee did not favour this test in the Indian context.
- Instead, it recommended that a filing creditor must only provide a record of the liability (debt), and evidence of default on payments by the corporate debtor.
- This twin-test was expected to provide a clear and objective trigger for insolvency resolution.
- The Supreme Court’s latest ruling is likely to radically alter these expectations.
Implications of the Supreme Court ruling
- Resisting the admission by debtor: Now due to the Supreme Court ruling, even if the NCLT is satisfied that a financial debt exists and that the corporate debtor has defaulted, it may not admit the case for resolution if the corporate debtor resists admission on any other grounds.
- Corporate debtors are likely to use this precedent to the fullest to resist admission into IBC.
- Risk of value destruction due to delay: The likely outcome would be more litigation and delay at the admission stage, enhancing the risks of value destruction in the underlying distressed business.
Conclusion
In all fairness, the Supreme Court has been extremely pragmatic in its interpretation and application of the IBC. Even in the recent ruling, the court has rightly cautioned that the NCLT should not exercise its discretionary power in an arbitrary or capricious manner. Yet, this decision may have opened a Pandora’s box. Policymakers would be well-advised to take note before history starts repeating itself.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: LEO
Mains level: Paper 3- 5G network with LEO satellites
Context
As terrestrial 5G mobile networks are being rolled out across countries, there is a renewed interest in integrating Non-Terrestrial Networks.
SatNets for 5G
- Satellites and terrestrial networks have always been considered two independent ecosystems, and their standardisation efforts have proceeded independent of each other.
- The primary non-terrestrial network that is being considered is the low latency Low Earth Orbit (LEO) satellite networks (SatNets), as a complement to terrestrial networks.
- Towards this, Starlink, operated by the Elon Musk-owned SpaceX, and OneWeb, promoted by Bharti Global, have launched about 2,500 and 648 LEO satellites respectively at an altitude of about 1,200 km with the objective of promoting global broadband connectivity.
- There are other players such as Reliance Jio in a joint venture with Luxembourg-based SES and Amazon’s Project Kuiper.
Benefits of using SatNets
- 1] Service continuity in emergency: service continuity to provide seamless transition between terrestrial networks and SatNets in case of public safety, disaster management and emergency situations;
- 2] Providing service in remote area: Service ubiquity to provide 5G services in unserved and underserved areas of the world, thereby bridging the digital divide;
- 3] Scalability: Service scalability that utilises the unique capabilities of SatNets in multicasting and broadcasting similar content over a large geographical area.
- 4] Service to in-motion user: The LEO SatNets can provide service not only to stationary but also to in-motion users.
- 5] Low latency over long distance: Wireless communications through LEO satellites over long distances is proven to be 1.47 times faster than communication over the same distance through terrestrial optic fibre. It is this advantage along with global coverage that provide a strong use case for LEO SatNets to complement terrestrial optic fibre networks.
- SatNet in standardisation: In view of the above advantages, standard-setting organisations such as the Third Generation Partnership project (3GPP), comprising telcos and equipment manufacturers around the world, started integrating SatNets in the standardisation process.
Measures by the government
- Realising the advantages, the Government, in its National Digital Communications Policy 2018, has indicated the development of an ecosystem for local manufacturing of satellite communication systems and promoting participation of private players for the strengthening of satellite communication infrastructure in the country.
- Accordingly, the New Space India Limited (NSIL), a public sector enterprise, was established in 2019 to re-orient space activities from a ‘supply driven’ model to a ‘demand driven’ model, thereby ensuring optimum utilisation of the space assets.
- The Department of Space also established in 2020 a new regulatory body named the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
- IN-SPACe is intended to provide a level playing field for private companies to use Indian space infrastructure.
Issues and challenges
- Allocation of frequency: Issues will involve addressing issues around frequencies to be allocated for satellite broadband, the methodology of allocation, the relatively higher cost of consumer equipment and the placement and interconnections of SatNets with terrestrial public landline/ mobile networks at the ground stations
- Cost: The other major challenge in LEO SatNets is the cost of user terminal and access charges to the end users.
- A recent research analysing both Starlink and OneWeb concludes that the standalone LEO SatNets have a distinct cost advantage only if the density is less than 0.1 person per square km compared to terrestrial broadband networks.
- Hence it is to the advantage of LEO SatNet providers to integrate their networks with terrestrial 5G networks to improve the cost economies.
Conclusion
All these, along with the proposed revisions to the Satellite Communications Policy of the Government, will provide the required fillip to LEO SatNets to become an integral part of the communication infrastructure of the country.
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Back2Basics: LEO satellites
- LEO satellites orbit between 2,000 and 200 kilometers above the earth. LEO satellites are commonly used for communications, military reconnaissance, spying and other imaging applications.
- A low earth orbit (LEO) satellite is an object, generally a piece of electronic equipment, that circles around the earth at lower altitudes than geosynchronous satellites.
- Satellites made for communications benefit from the lower signal propagation delay to LEO.
- This lower propagation delay results in less latency.
- Being closer to the earth has an obvious benefit for many types of earth observational satellites by resolving smaller subjects with greater detail.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Recessions
Mains level: Global economic slowdown
Surging inflation and sharp slowdowns in the United States and China prompted the IMF to cut its outlook for the global economy this year and next, while warning that the situation could get much worse.
By one common definition, the major global economies are on the cusp of a recession.
What is Recession?
- A recession is a significant decline in economic activity that lasts for months or even years.
- Experts declare a recession when a nation’s economy experiences negative GDP, rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
- Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy.
What causes Recessions?
These phenomena are some of the main drivers of a recession:
- A sudden economic shock: An economic shock is a surprise problem that creates serious financial damage. The coronavirus outbreak, which shut down economies worldwide, is a more recent example of a sudden economic shock.
- Excessive debt: When individuals or businesses take on too much debt, the cost of servicing the debt can grow to the point where they can’t pay their bills. Growing debt defaults and bankruptcies then capsize the economy.
- Asset bubbles: When investing decisions are driven by emotion, bad economic outcomes aren’t far behind. Investors can become too optimistic during a strong economy.
- Too much inflation: Inflation is the steady, upward trend in prices over time. Inflation isn’t a bad thing per se, but excessive inflation is a dangerous phenomenon. Central banks control inflation by raising interest rates, and higher interest rates depress economic activity.
- Too much deflation: While runaway inflation can create a recession, deflation can be even worse. Deflation is when prices decline over time, which causes wages to contract, which further depresses prices. When a deflationary feedback loop gets out of hand, people and business stop spending, which undermines the economy.
- Technological change: New inventions increase productivity and help the economy over the long term, but there can be short-term periods of adjustment to technological breakthroughs. In the 19th century, there were waves of labour-saving technological improvements.
What’s the difference between Recession and Depression?
- Recessions and depressions have similar causes, but the overall impact of a depression is much, much worse.
- There are greater job losses, higher unemployment and steeper declines in GDP.
- Most of all, a depression lasts longer—years, not months—and it takes more time for the economy to recover.
- Economists do not have a set definition or fixed measurements to show what counts as a depression. Suffice to say, all the impacts of a depression are deeper and last longer.
- In the past century, the US has faced just one depression: The Great Depression.
The Great Depression
- The Great Depression started in 1929 and lasted through 1933, although the economy didn’t really recover until World War II, nearly a decade later.
- During the Great Depression, unemployment rose to 25% and the GDP fell by 30%.
- It was the most unprecedented economic collapse in modern US history.
- By way of comparison, the Great Recession was the worst recession since the Great Depression.
- During the Great Recession, unemployment peaked around 10% and the recession officially lasted from December 2007 to June 2009, about a year and a half.
- Some economists fear that the coronavirus recession could morph into a depression, depending how long it lasts.
How long do recessions last?
- Gulf War Recession (July 1990 to March 1991): At the start of the 1990s, the U.S. went through a short, eight-month recession, partly caused by spiking oil prices during the First Gulf War.
- The Great Recession (2008-2009): As mentioned, the Great Recession was caused in part by a bubble in the real estate market.
- Covid-19 Recession: The most recent recession began in February 2020 and lasted only two months, making it the shortest US recession in history.
Can we predict a recession?
Given that economic forecasting is uncertain, predicting future recessions is far from easy. However, the following warning signs can give you more time to figure out how to prepare for a recession before it happens:
- An inverted yield curve: The yield curve is a graph that plots the market value—or the yield—of a range. When long-term yields are lower than short-term yields, it shows that investors are worried about a recession. This phenomenon is known as a yield curve inversion, and it has predicted past recessions.
- Declines in consumer confidence: Consumer spending is the main driver of the US economy. If surveys show a sustained drop in consumer confidence, it could be a sign of impending trouble for the economy.
- Drop in the Leading Economic Index (LEI): Published monthly by the Conference Board, the LEI strives to predict future economic trends. It looks at factors like applications for unemployment insurance, new orders for manufacturing and stock market performance.
- Sudden stock market declines: A large, sudden decline in stock markets could be a sign of a recession coming on, since investors sell off parts and sometimes all of their holdings in anticipation of an economic slowdown.
- Rising unemployment: It goes without saying that if people are losing their jobs, it’s a bad sign for the economy.
How does a recession affect individuals?
- We may lose your job during a recession, as unemployment levels rise. It becomes much harder to find a job replacement since more people are out of work.
- People who keep their jobs may see cuts to pay and benefits, and struggle to negotiate future pay raises.
- Investments in stocks, bonds, real estate and other assets can lose money in a recession, reducing your savings and upsetting your plans for retirement.
- Business owners make fewer sales during a recession, and may even be forced into bankruptcy.
- With more people unable to pay their bills during a recession, lenders tighten standards for mortgages, car loans, and other types of financing.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CPEC, BRI
Mains level: Read the attached story
India has severely criticized the reported move by both China and Pakistan for third-party participation in some projects on the China-Pakistan Economic Corridor (CPEC) that passes through Pakistan-occupied Kashmir (PoK).
China-Pakistan Economic Corridor (CPEC)
- The CPEC, one of the most ambitious components of Beijing’s Belt and Road Initiative (BRI), was announced to great fanfare in 2015.
- CPEC is a collection of infrastructure projects that are under construction throughout Pakistan beginning in 2013.
- Originally valued at $47 billion, the value of CPEC projects is worth $62 billion as of 2020.
- It is intended to rapidly upgrade Pakistan’s required infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and SEZs.
- On 13 November 2016, CPEC became partly operational when Chinese cargo was transported overland to Gwadar Port for onward maritime shipment to Africa and West Asia.
Why CPEC?
- CPEC has consistently been held up as a “gamechanger” for Pakistan’s economy.
- But the road to completion has proved long and winding. Reports indicate that the pace of CPEC projects has been slowing down in Pakistan in recent years.
- At the same time, China is the only country that is heavily investing in Pakistan.
Why in news?
- The lack of progress has led to numerous reports about CPEC being at a near standstill in the country.
- Gwadar, despite being the epicenter of multibillion-dollar projects, lacks basic necessities like reliable access to water and electricity, let alone other facilities.
- The baloch freedom movement is another impediment to the stalled project.
- There have been sporadic attacks in Gwadar and elsewhere in the province and the country to discourage Chinese investments in the province.
- China is also seeking to deploy its Army in the CPEC projects, to which Pakistan has contested.
India’s reservation
- The GoI, which shares tense relations with Pakistan, objects to the CPEC project as upgrade works to the Karakoram Highway are taking place in Gilgit-Baltistan.
- This is the territory illicitly occupied by Pakistan in 1947-48.
- During the visit of Indian PM Modi to China in 2015, the Indian FM, Sushma Swaraj reportedly told the Chinese.
- India did not object to the Chinese construction of the Karakoram Highway which was built between 1959 and 1979.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: International Space Station (ISS)
Mains level: Implications of Russia-Ukraine War
Russia will pull out of the International Space Station (ISS) after 2024 and focus on building its own orbiting outpost.
Why in news?
- Russia will end a symbolic two-decade orbital partnership between Moscow and the west.
International Space Station (ISS)
- The ISS was launched in 1998 as part of joint efforts by the U.S., Russia, Japan, Canada and Europe.
- The idea of a space station originated in the 1984 State of the Union address by former U.S. President Ronald Reagan.
- The space station was assembled over many years, and it operates in low-earth orbit.
- Since its inception, it has served as a laboratory suspended in space and has aided multiple scientific and technological developments.
- The ISS was originally built to operate for 15 years.
Why was ISS launched?
- A space station permits quantum leaps in research in science, communications, and in metals and lifesaving medicines which could be manufactured only in space.
- ISS has consistently maintained human presence for the past 21 years, providing astronauts with sophisticated technologies for scientific research.
What is Russia’s role in maintaining the ISS?
- The ISS is built with the cooperation of scientists from five international space agencies — NASA of the U.S., Roscosmos of Russia, JAXA of Japan, Canadian Space Agency and the European Space Agency.
- Each agency has a role to play and a share in the upkeep of the ISS.
- Both in terms of expense and effort, it is not a feat that a single country can support.
- Russia’s part in the collaboration is the module responsible for making course corrections to the orbit of the ISS.
- They also ferry astronauts to the ISS from the Earth and back.
- Until SpaceX’s dragon spacecraft came into the picture the Russian spacecraft was the only way of reaching the ISS and returning.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ramsar wetlands in India
Mains level: Not Much
India has added five more Ramsar sites, or wetlands of international importance, bringing the number of such sites in the country to 54.
Newly added Ramsar Sites
- Karikili Bird Sanctuary, Pallikaranai Marsh Reserve Forest and Pichavaram Mangrove in Tamil Nadu,
- Sakhya Sagar in Madhya Pradesh
- Pala Wetlands in Mizoram
What are Wetlands?
- A wetland is a distinct ecosystem that is flooded by water, either permanently or seasonally, where oxygen-free processes prevail.
- The primary factor that distinguishes wetlands from other landforms or water bodies is the characteristic vegetation of aquatic plants, adapted to the unique hydric soil.
Significance of Wetlands
- Wetlands provide a wide range of important resources and ecosystem services such as food, water, fibre, groundwater recharge, water purification, flood moderation, erosion control, and climate regulation.
- They are, in fact, are a major source of water and our main supply of freshwater comes from an array of wetlands that help soak rainfall and recharge groundwater.
- They provide many societal benefits: food and habitat for fish and wildlife, including threatened and endangered species; water quality improvement; flood storage; shoreline erosion control; economically beneficial natural products for human use; and opportunities for recreation, education, and research, etc.
India and Ramsar Wetlands
- India’s Ramsar wetlands are spread over 11,000 sq.km — around 10% of the total wetland area in the country — across 18 States.
- No other South Asian country has as many sites, though this has much to do with India’s geographical breadth and tropical diversity.
- The UK (175) and Mexico (142) — smaller countries than India — have the most Ramsar sites, whereas Bolivia spans the largest area with 1,48,000 sq.km under the Convention protection.
- The National Wetland Inventory and Assessment compiled by the ISRO estimates India’s wetlands to span around 1,52,600 square kilometres.
What makes Ramsar designation significant?
- Being designated a Ramsar site does not necessarily invite extra international funds.
- Acquiring this label helps with a locale’s tourism potential and its international visibility.
Criteria for Ramsar site designation
To be Ramsar site a place must meet at least one of the criteria as defined by the Ramsar Convention of 1961, such:
- Supporting vulnerable, endangered, or critically endangered species or threatened ecological communities or,
- If it regularly supports 20,000 or more waterbirds or,
- Is an important source of food for fishes,
- Spawning ground,
- Nursery and/or migration path on which fish stocks are dependent upon.
- Static or flowing, fresh, brackish or salt, including areas of marine water the depth of which at low tide does not exceed six metres
- Does not include river channels, paddy fields, human-made water bodies/ tanks specifically constructed for drinking water purposes
Back2Basics: Ramsar Convention
- The Convention on Wetlands of International Importance (better known as the Ramsar Convention) is an international agreement promoting the conservation and wise use of wetlands.
- It is the only global treaty to focus on a single ecosystem.
- The convention was adopted in the Iranian city of Ramsar in 1971 and came into force in 1975.
- Traditionally viewed as a wasteland or breeding ground of disease, wetlands actually provide fresh water and food and serve as nature’s shock absorber.
- Wetlands, critical for biodiversity, are disappearing rapidly, with recent estimates showing that 64% or more of the world’s wetlands have vanished since 1900.
- Major changes in land use for agriculture and grazing, water diversion for dams and canals, and infrastructure development are considered to be some of the main causes of loss and degradation of wetlands.
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From UPSC perspective, the following things are important :
Prelims level: Unique Disability IDs (UDIDs)
Mains level: Not Much
The generation of unique disability IDs (UDIDs) had increased from an average of 5,000 a day to an average of 7,000 to 9,000 daily during the 90-day Azadi Se Antodaya Tak campaign.
Why such a move?
- According to the 2011 Census, there were 2.68 crore people with disabilities.
What is Unique Disability IDs (UDIDs)?
- “Unique ID for Persons with Disabilities” project is being implemented with a view of creating a National Database for PwDs, and to issue a Unique Disability Identity Card to each person with disabilities.
- It functions under the Ministry of Social Justice and Empowerment.
- The project aims only to encourage transparency, efficiency and ease of delivering the government benefits to the person with disabilities, and ensure uniformity.
- The project will also help in stream-lining the tracking of physical and financial progress of beneficiary at all levels of hierarchy of implementation – from village level, block level, District level , State level and National level.
Types of disabilities covered
As per the Persons with Disabilities (Equal Opportunities, Protection of Rights & Full Participation) Act, 1995 – A person with a disability can be defined as one with one or more of disabilities falling under any of the below-mentioned categories :
- Blindness
- Leprosy-cured
- Cerebral Palsy: It means a group of non-progressive conditions of a person characterized by abnormal motor control posture resulting from brain insult or injuries occurring in the pre-natal, peri-natal or infant period of development.
- Low vision: It means a person with impairment of visual functioning even after treatment of standard refractive correction but who uses or is potentially capable of using vision for the planning or execution of a task with appropriate assistive device;
- Locomotor disability: It means disability of the bones, joints or muscles leading to substantial restriction of the movement of the limbs or nay form of cerebral palsy;
- Mental retardation: It means a conditions of arrested or incomplete development of mind of a person which is specially characterized by sub normality of intelligence;
- Mental illness: It means any mental disorder other than Mental retardation
- Hearing Impairment: It means loss of sixty decibels or more in the better ear in the conversational range of frequencies
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From UPSC perspective, the following things are important :
Prelims level: Monkeypox
Mains level: Paper 2-Challenges of zoonotic diseases
Context
Monkeypox was previously limited to the local spread in central and west Africa, close to tropical rainforests, but has recently been seen in various urban areas and now in more than 50 countries.
About monkeypox
- A virus belonging to the poxviruses family causes a rare contagious rash illness known as monkeypox.
- This zoonotic viral disease (a disease transmitted from animals to humans) has hosts that include rodents and primates.
- It is a self-limiting disease with symptoms lasting two to four weeks and a case fatality rate of 3-6 per cent.
- Symptoms: A skin rash on any part of the body could be the only presenting symptom.
- Swollen lymph nodes are another distinguishing feature. Aside from these, other symptoms of a viral illness include fever, chills, headache, muscle or back aches, and weakness.
- Mode of transmission: Touching skin lesions, bodily fluids, or clothing or linens that have been in contact with an infected person can result in transmission.
- It’s also worth noting that monkeypox does not spread from person to person through everyday activities like walking next to or having a casual conversation with an infected person.
- Treatment: Monkeypox is mostly treated by managing symptoms and preventing complications if it is diagnosed.
- In the minor proportion who are immunocompromised, complications can occur; pulmonary failure was the most common complication with a high mortality rate.
Containment Measures
- Because symptoms usually appear 5-21 days after exposure, people with rashes, sores in the mouth, rash, eye irritation or redness, or swollen lymph nodes should be monitored.
- When symptoms appear, it is critical to isolate the infected from other people and pets, cover their lesions, and contact the nearest healthcare provider.
- It is also critical to avoid close physical contact with others until instructed to do so by our healthcare provider.
- It is preferable to use home isolation whenever possible.
- Priority should be given to educating grassroots workers about symptoms, specimen collection, disease detection, acquiring sample collection equipment, and maintaining cold storage of specimens.
- Increased surveillance and detection of monkeypox cases are critical for controlling the disease’s spread and understanding the changing epidemiology of this resurging disease.
- Preventive health measures, such as avoiding infected animal or human contact and practising good hand hygiene, are the best option.
Vaccines and drugs
- In the US, pre exposure vaccination with JYNNEOS® is available to healthcare workers and lab workers exposed to this group of poxviruses.
- The smallpox vaccine is 85 percent effective against the disease.
- Another vaccine, ACAM2000, is a live vaccinia virus vaccine that is otherwise recommended for smallpox immunisation and can also be used for high-risk individuals during monkeypox outbreaks.
- In addition, Tecovirimat, an antiviral drug used to treat smallpox, is recommended for monkeypox.
- Challenges: Smallpox vaccination programmes have been discontinued for the past 50 years, resulting in a scarcity of effective vaccines.
- There are approved drugs and vaccines, but they are not widely available to scale up controlling monkeypox.
Why WHO declared it as international concern?
- The increase in monkeypox cases in a short span of time in many countries necessitated the declaration of public health emergency of international concern (PHEIC) and additional research studies.
- It is unclear whether the recent sudden outbreaks in multiple countries result from genotypic mutations that alter virus transmissibility. SARS-CoV-2 and monkeypox virus co-infection can alter infectivity patterns, severity, management, and response to vaccination against either or both diseases.
- As a result, there is a need to improve diagnostic test efficiency.
Way forward
- Plan for pandemic preparedness: This is not the last such difficulty we will face, as the world is still witnessing more such public health crises.
- Zoonotic diseases are caused by various factors, including unchecked deforestation, climate coupled with a failure to prioritise public health, poverty, and climate change.
- Instead, a robust plan for pandemic preparedness should be accelerated, guided by a single health agenda.
- The world is yet to recognise emerging and re-emerging infectious diseases as a genuine threat.
- The immediate priority is to strengthen the surveillance infrastructure, including hiring public health professionals and field workers who can participate in outbreak detection and response during many future PHEICs.
Conclusion
Without prioritising public health strengthening, the threat of new and re-emerging infectious diseases, as well as the enormous social and economic challenges that accompany them, is real and grave.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Input tax credit
Mains level: Paper 3- Next stage of reforms in GST
Context
India has completed five years under the GST regime.
How GST has performed so far
- Before the GST, there were multiplicity of the Centre and state levies that masked the actual incidence of tax on products, the debilitating effects of the entry tax and the uncertainty of tax rates.
- Today, in contrast, we have a single tax across the country combined with a stability in rates and a common technology platform in the form of a GSTN.
- Record number of registrants: The ease of payments has improved over time with the technical glitches having been slowly sorted out, leading to a record number of GST registrants – increasing from 1.08 crore in April 2018 to 1.36 crore in 2022.
- The revenue gains have been significant.
- If we factor in the three-percentage point decline in the incidence of GST duty from 14.8 to 11.8 per cent as suggested by the RBI, the actual proportion in 2021-2022 would have been 7.4 per cent of the GDP (according to a recent article by Arvind Subramanian and Josh Felman).
What were the changes made to ensure the stricter compliance
- The above improvement can be traced to stricter compliance flowing from three factors.
- 1] Input credit only after supplier uploads invoice: Denial of input credit to the buyer without the supplier uploading the invoice.
- 2] The introduction of e-invoicing.
- 3] Third the introduction of e-waybills for transporters for value exceeding Rs 50,000 per consignment.
- Greater coordination between CBIC and CBDT: Another factor is greater coordination between the Central Board of Excise and Customs (CBIC) and Central Board of Direct Taxes (CBDT) in compliance verification.
Changes needed
- 1] Provisions for unregistered GST suppliers: The micro, small and medium enterprises (MSME) sector has been affected by the GST reforms because the large units have been reluctant to buy from them in the absence of input duty credit.
- An important measure here would be to amend the law to provide that all units buying from unregistered GST suppliers would have to pay duty on a reverse charge basis.
- 2] Rate rationalisation: While the revenue gains have come through better compliance, the next surge in GST revenues will have to come from an increase in the average incidence of GST duties.
- This will require a combination of measures — phasing out of exemptions, raising of the merit rate from the present level of 5 per cent and merging the 12 per cent rate with the standard rate, whether to 16 per cent or 18 per cent.
- 3] Inclusion of fuels and real estate: Including natural gas/ATF under GST should be considered.
- Further reforms in the factor markets — land, real estate and energy — would require their inclusion in the GST.
- This is essential because while the economic reforms of the 1990s restructured the product market, the factor market reforms were incomplete.
- 4] Creation of federal institution: We need to create another institution in the form of a GST state secretariat that can bring together senior officers from the Centre and states in an institutional forum registered under the Society Act.
- This forum could also provide a common point of contact for trade and industry to redress the grievances on non-policy matters.
Conclusion
As GST enters its sixth year journey, the changes suggested above will fine tune it to propel India towards $5 trillion economy.
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Back2Basics: GST Input Tax Credit
- Input Tax Credit means claiming the credit of the GST paid on purchase of Goods and Services which are used for the furtherance of business.
- The Mechanism of Input Tax Credit is the backbone of GST and is one of the most important reasons for the introduction of GST.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: I2U2
Mains level: Paper 2- Changes in global order
Context
Adrift at the end of the 20th century, the world of the 21st century is proving to be highly chaotic.
Lack of strong European leadership
- Europe has been undergoing several major changes in recent months
- Germany, which has steered European politics for almost two wdecades under Angela Merkel, now has a Chancellor (Olaf Scholz) who has hardly any foreign policy experience.
- Without Germany’s steadying hand, Europe would be virtually adrift in troubled waters.
- Emmanuel Macron may have been re-elected the President of France, but his wings have been clipped with the Opposition now gaining a majority in the French National Assembly.
- The United Kingdom is in deep trouble, if not disarray.
- Consequently, at a time when actual and moral issues require both deft and firm handling, Europe appears rudderless.
- Economic impact: Compounding this situation is the negative economic impact of the war in Ukraine.
- What is evident already is that apart from the spiralling cost of energy, food and fertilizers, quite a few countries confront the spectre of food scarcity given that Ukraine and Russia were generally viewed as the granaries of the world.
- Apart from this, nations do face several other problems as well, including, in some cases, a foreign exchange crisis.
- The instruments employed by the West against Russia, such as sanctions, have not had the desired impact as far as the latter is concerned.
Growing Russia-China closeness and its implications for Indo-Pacific
- The situation in Europe is still to be decided, but what is also becoming obvious is that outside Europe, the conflict is beginning to take on a different dimension, leading to the emergence of new patchworks of relationships.
- China’s growing influence in the Pacific region, including in the Indo-Pacific, and further strengthened by the entente with Russia, may hardly be a by-product of the Ukraine-Russia conflict, but it has induced fresh energy into a possible conflict between two rival power blocs.
- Asia unwilling to take sides: Understanding the changing nature of relationships in Asia, and considering that most Asian nations appear unwilling to take sides in the event of a conflict, is important.
- No unity of purpose: Unlike the unity and the strength displayed by European nations — there is no evidence of any such unity of purpose in the event that China was to launch a conflict with Taiwan.
Challenges for India
- India cannot ignore the situation created by the stronger bonds between Russia and China.
- Uncertainty about Russia: India will need to determine whether Russia can be expected to play a role as a ‘trusted friend’ of India’s.
- Again, it would be too much to hope that in dealing with China, India can expect the same kind of support it may need from the Quad.
- China sidelining India: China, however, seems intent on establishing its dominance and also sidelining India in Asia, which New Delhi would have discerned in the course of the virtual BRICS Summit hosted by China in June.
- Afghanistan challenge: Apart from China, India also urgently needs to come to terms with a Taliban Afghanistan.
- Sri Lanka Challenge: At this time, the democratic upsurge in Sri Lanka presents India with a fresh set of problems.
- In a situation where ‘rage’ and ‘anger’ are the dominant sentiments, there is every reason for concern that even governments that have maintained a ‘hands-off’ relationship could become targets of the new forces emerging in Sri Lanka.
Major developments in West Asia
- The Abraham Accords in 2020, which brought about the entente between the United Arab Emirates and Israel, has been the harbinger of certain new trends in the tangled web of relationships among countries of West Asia.
- But even as the U.S.’s relations with Arab nations in West Asia appear to weaken, Russia and China are beginning to play key roles, with Iran as the fulcrum for establishing new relationships.
- China continues to steadily build on its connections with the region, and with Iran in particular.
- How India is dealing with the situation: India has been making steady progress in enlarging its contacts and influence in West Asia.
- While the India-Israel relationship dates back to the 1990s, the India-UAE relationship has blossomed in the past couple of years.
- India-Iran relations, however, seem to have reached a stalemate of late.
- Issues with I2U2: India has joined a U.S.-based group, the I2U2, comprising India, Israel the UAE and the U.S.
- Details of the new arrangements are unclear, but it is evident that the target is Iran, as China is for the Quad, injecting yet another element of uncertainty into an already troubled region.
Implications for nuclear deterrence
- The argument being adduced is that a wide gap exists today in regard to China and India’s nuclear deterrent capabilities, and implicitly blames India for its voluntary ban on testing and its ‘no-first-use’ doctrine from making progress in this arena.
- What is also implied is that India could overcome the lacuna by seeking the assistance of western nations which have such capabilities and knowledge.
- Way forward for India: It is important for India to guard against such pernicious attempts at this time to undo its carefully negotiated and structured nuclear policy and doctrine, and be inveigled into any anti-China western move on this front.
Conclusion
Geopolitical experts in the West confine their findings at present solely to the impact of the Russia-Ukraine conflict, believing that this alone would determine not only war and peace but also other critical aspects as well. Significant developments are also taking place in many other regions of the globe, which will have equal if not more relevance to the future of the international governance system.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Digital economy and policy formulation challenges
Context
Hyperactivity in the digital regulatory space in India in the form of policies, rules and guidelines signals the accelerated growth of the digital ecosystem which needs regulatory nurturing.
Recent policy measures related to digital ecosystem
- The Ministry of Electronics and Information Technology (MeitY) has announced the draft amendment to the IT Rules 2021 (June 2022).
- The draft India Data Accessibility and Use Policy (February 2022),
- National Data Governance Framework Policy (May 2022) and the new cyber security directions (April 2022).
- Besides these, the most awaited and critical e-commerce policy and the Data Protection Bill, both of which have been in the making for at least a few years now, are likely to be announced soon.
- This hyperactivity signals the accelerated growth of the digital ecosystem which needs regulatory nurturing.
- The government has recently invited stakeholders to an open house discussion on the proposed changes to the IT Rules.
Participation of Big Tech platforms and other stakeholders in policy discussions
- Various aspects of digital economy: Governments have been pushed to respond to myriad aspects of the digital economy — from financial sector regulation to anti-trust to data privacy.
- With so much at stake, Big Tech platforms have upped their advocacy by hiring qualified professionals and funding empirical research, not only in India but also across the world.
- Google, Amazon, Facebook, Twitter and the likes are all actively engaged in policy discussions, either directly or through third parties to put forth a point of view.
- Similarly, start-ups, think tanks, civil society organisations and academics invested in the issues of the digital economy either as users or as observers contribute to the policy discourse.
Who is missing?
- Indian origin multinational corporations — the Tatas, Reliance, Aditya Birla Group, Godrej, ITC, Bajaj, and Hero — have collectively contributed to the country’s development.
- While these may not be quintessential digital companies, except for Reliance Jio, many are working towards adopting digital technologies for manufacturing, distribution, and client service.
- Many companies now have online distribution channels that retail through intermediary platforms or their own websites.
- The Tatas have taken the plunge into e-commerce, first with Tata Cliq and recently with Neu.
- Despite this, these Indian MNCs are distant from conversations on these landmark policies that will determine the future of Indian commerce.
Government relations and outreach functions of MNCs
- Government relations and outreach functions have always been important to big businesses.
- At what point and in what manner MNCs interact with the government will of course vary.
- Using a sector-specific example, all telecom companies in India committedly participate in TRAI’s open houses, industry deliberations and written submissions so that they can nudge policymakers toward industry-friendly decision-making that sits well with overall growth objectives.
- On general concerns such as infrastructure and the ease of doing business, intervention from the industry is much more indirect and often an ex-post phenomenon, that is, after the policy has been announced.
- The practice of multi-stakeholderism in policy formulation is present in letter, if not always in spirit.
Policy formulation in digital economy
- The case of the digital economy is different.
- There are multiple opportunities and avenues for participating in dialogue.
- Striking balance between business viability and government objectives: The policy teams of Big Tech make the most use of these channels to present their point of view and hope for reconciliation on issues, with the final policy document attempting to strike a balance between business viability and government objectives.
- Over the last few years of active debate on critical digital policies including those on data governance, privacy, anti-trust, and intermediary liability, there has been an overwhelming presence of the Big Tech Indian start-ups competing in this space, as well as their affiliated associations.
- Indian MNCs, for reasons unclear, has been mostly absent.
Conclusion
Absence of Indian MNCs resulted in is a disproportionate policy focus on keeping Big Tech in check as against creating an enabling, secure and trusted digital ecosystem in India. As many issues highlighted by Big Tech are likely to be pain points for Indian businesses as well, participation of Indian MNCs could break the “us versus them” problem plaguing policy making in India today.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Provision for Bail
Mains level: Prison reforms in India
On July 11, a division bench of the Supreme Court of India in Satender Kumar Antil vs CBI laid down fresh guidelines on arrests in order to have strict compliance with the provisions of Section 41 and 41A of the Code of Criminal Procedure, 1973.
Why in news?
- In recent times, there have been several controversies regarding the arrest and subsequent bail of accused persons.
- On July 16, even the Chief Justice of India (CJI) cautioned against “hasty and indiscriminate arrests”.
- He further commented on the delay in bails and the plight of undertrial prisoners.
What are the guidelines?
- In the case of Arnesh Kumar (2014), the apex Court had rightly observed that “arrest brings humiliation, curtails freedom and cast scars forever”.
- With regard to the Satender Kumar Antil case, the Court has issued specific directions and has also called for a compliance report.
- The Court said that the investigating agencies and their officers are duty-bound to comply with the mandate of Section 41 and 41A and the directions issued.
How is a person arrested?
- Arrest in its simplest form is defined as, “when one is taken and restrained from his liberty”.
- The police has wide powers to arrest under the Code of Criminal Procedure, 1973.
- In the Joginder Kumar (1994) verdict, the Court had stated that “arrest and detention in police lock-up of a person can cause incalculable harm to the reputation and self-esteem of a person”.
What are Sections 41 and 41A of the Code of Criminal Procedure?
- Section 41 provides for the circumstances in which arrest can be made by the police without a warrant and mandates for reasons to be recorded in writing for every arrest and non-arrest.
- Section 41A provides for the requirement of a notice to be sent by the investigating agencies before making an arrest in certain conditions prescribed by the Code.
What did the court comment regarding these articles?
- The Court stated that any dereliction on the part of the agencies has to be brought to the notice of the higher authorities by the court followed by appropriate action.
- The Bench further said that the courts will have to satisfy themselves on the compliance of Section 41 and 41A.
- Any non-compliance would entitle the accused for a grant of bail.
What are the guidelines with respect to bail?
Regarding bail, the Court has made a specific observation in the form of an obiter that the:
- GoI may consider the introduction of a separate enactment, i.e. a Bail Act, so as to streamline the grant of bails.
- It is clearly stated that there need not be any insistence on a bail application while considering the application under Sections 88, 170, 204 and 209 of the Code.
- The Court said that there needs to be a strict compliance of the mandate laid down in the judgment of this court in Siddharth” (Siddharth vs State of U.P., 2021).
- It is a clear direction of the Court that bail applications ought to be disposed of within a period of two weeks except if the provisions mandate otherwise — the exception being an intervening application.
- The Court also said that applications for anticipatory bail are expected to be disposed of within a period of six weeks with the exception of any intervening application.
- The High Courts have been directed by the apex court to identify undertrial prisoners who cannot comply with bail conditions.
Way forward
- The State and Central governments will have to comply with the directions issued by the Court from time to time with respect to the constitution of special courts.
- The High Court in consultation with the State governments will have to undertake an exercise on the need for special courts.
- The vacancies should be filled up in the position of Presiding Officers of the special courts, expeditiously.
- The CJI has also raised the issue of vacant positions and infrastructural requirements in the judiciary.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: INSPACE, NSIL
Mains level: Commercial space activities in India
Principal Scientific Adviser stated earlier this month that the government would soon come up with a new space policy that could initiate the rise of India’s own “SpaceX-like Ventures”.
Prospects of the proposed Space Policy
- The final version of the policy would soon be referred to the Empowered Technology Group for further examination.
- The proposed move would increase private sector participation in the industry.
- The policy document recognizes that India has not tapped into its complete potential in space sector.
Why is development in the space sector important?
Ans. Address wide range of problems
(1) Climate Change
- Satellites provide more accurate information on weather forecasts and assess (and record) long-term trends in the climate and habitability of a region.
- By monitoring the long-term impact of climate change at regional, territorial, and national scales, governments would be able to devise more pragmatic and combative plans of action for farmers and dependent industries.
- Additionally, they can also serve as real-time monitoring and early-warning solutions against natural disasters such as earthquakes, tsunamis, floods, wildfires, mining etc.
- Real-time tracking can also serve multiple purposes in defence.
(2) Connectivity
- In this light, it must be noted that satellite communications, which are used to facilitate telecommunication services, are among the major categories for investment in the space technology sector.
- Satellite communication can reach more remote areas where conventional networks would require a heavy complimenting infrastructure.
- Additionally, as to reliability, the World Economic Forum had stated that satellite communication can help connect 49% of the world’s unconnected population.
- Other prominent categories include spacecraft and equipment manufacturing.
- What essentially needs to be remembered is that the strategic space avenue is an integration of the aerospace, IT hardware and telecom sectors.
Where does India stand in the global space market?
- As per SpaceTech Analytics, India is the sixth-largest player in the industry internationally having 3.6% of the world’s space-tech companies (as of 2021).
- US holds the leader’s spot housing 56.4% of all companies in the space-tech ecosystem.
- Other major players include UK (6.5%), Canada (5.3%), China (4.7%) and Germany (4.1%).
- The Indian Space Industry was valued at $7 billion in 2019 and aspires to grow to $50 billion by 2024.
Why does India matter in the global space-tech market?
- The country’s standout feature is its cost-effectiveness.
- India holds the distinction of being the first country to have reached the Mars’ orbit in its first attempt and at $75 million — way cheaper than Western standards.
Future prospects of India’s private ‘Space’
Ans. India may lead in space junk management
- Almost 60-odd start-ups had registered with the Indian Space Research Organisation (ISRO) this year.
- A majority of them were dealing in projects related to space debris management.
- As space becomes more congested with satellites, the technology would thus help in managing ‘space junk’ (debris of old spacecraft and satellites).
Where does India lack?
Ans. Undisputedly, it is the finances
- The US and Canada were the highest receivers of space-related investment in 2021.
- The US’s space budget was $41 billion in 2021, $23.3 billion of which was focused on NASA.
- India’s total budgetary allocation for FY2022-23 towards the Department of Space was ₹13,700 crore ($172 million).
- Further, as per Tracxn data, funding into the sector’s start-ups (in India) nearly tripled to $67.2 million on a year-over-year basis in 2021.
How is the private sector’s involvement regulated in India?
- In June 2020, the Union government announced reforms in the space sector enabling more private players to provide end-to-end services.
- The central idea was to bring forth a predictable policy and regulatory environment for them and additionally provide access to ISRO facilities and assets to improve their capacities.
(1) Establishment of IN-SPACe
- An announcement for the establishment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) was made.
- It was mandated the task of promoting, authorising and licensing private players to carry out space activities.
- As an oversight and regulatory body, it is responsible for devising mechanisms to offer sharing of technology, expertise, and facilities free of cost to promote non-government private entities (NGPEs).
- IN-SPACe’s Monitoring and Promotion Directorate oversees NGPE’s activities as per prescribed regulations and reports back in case any corrective actions or resolutions are required.
- ISRO shares its expertise in matters pertaining to quality and reliability protocols, documentation, and testing procedure through IN-SPACe’s ‘interface mechanism’.
(2) Establishment of NSIL
- Additionally, constituted in March 2019, New Space India Ltd (NSIL), is mandated to transfer the matured technologies developed by the ISRO to Indian industries.
- All of them are under the purview of the Ministry of Defence.
- Private sector’s involvement in the long term, as with other commercial sectors, is believed to help spur investment and expertise in the realm which is capital-intensive and demands high technology.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Model Tenancy Act
Mains level: Read the attached story
More than a year since the Union Housing and Urban Affairs Ministry circulated the Model Tenancy Act (MTA), only four States had revised their tenancy laws to be in line with the MTA.
What is the Model Tenancy Act?
- MTA is aimed at opening up of the vacant housing stock for rental housing purposes and helping bridge the trust deficit that exists between tenants and landlords by clearly delineating their obligations.
- The housing and urban affairs ministry had floated the draft model tenancy law in July 2019.
Major provisions of MTA
(1) Rent Court and Rent Tribunal:
- To ensure speedy redressal of disputes, the Act calls for establishing a separate Rent Court and Rent Tribunal in every state/UTs to hear appeals for matters connected to rental housing.
- Only the rent court and no civil court will have the jurisdiction to hear and decide the applications relating to disputes between landowner and tenant and matters connected with it.
- It calls for the disposal of complaints and appeals by the Rent Court and Rent Tribunals within 60 days.
(2) Tenancy Agreements:
- It also seeks to establish an independent authority in every state and Union Territory for the registration of tenancy agreements.
- Under the Act, unless otherwise agreed in the tenancy agreement, the landlord will be responsible for activities like structural repairs except those necessitated by damage caused by the tenant etc.
- On his part, a tenant will be responsible for drain cleaning, switches and socket repairs, kitchen fixtures repairs, replacement of glass panels in windows, doors and maintenance of gardens and open spaces, among others.
For residential and commercial properties
- The Act will apply to premises let out for residential, commercial or educational use, but not for industrial use. It also won’t cover hotels, lodging houses, inns, etc.
- This model law will be applied prospectively and will not affect existing tenancies.
- It seeks to cover both urban as well as rural areas.
- The Act says that a security deposit equal to a maximum of two month’s rent in the case of residential premises and a maximum of six month’s rent in the case of non-residential premises would have to be paid by the tenants.
How will states implement it?
- As per the MoU signed under PMAY-U, the states and union territories would legislate or amend the existing rental laws on the lines of the MTA.
Why was a need felt to bring this on?
(1) For a rental economy
- Without a well-rounded rental policy and the proper implementation of the rental contracts, there was no sound mechanism to resolve tenant-landlord conflicts.
- Property owners find it challenging to evict tenants if they misuse the property.
- To steer clear of such complications, such property owners often chose to keep these homes vacant instead of renting them out.
(2) Unattractive rental yield
- In India, the rental yield for residential property is quite low, even in bigger cities. It is in the range of 1.5% to 3% of the capital values.
- This has disincentivized people from investing in second or third homes which could be rented out.
- Often, they also prefer to leave their properties vacant in case they return to India.
- NRIs avoid leasing their residential properties for fear of squatters and dealing with the legalities of eviction.
How will MTA help?
(1) Unlocking homes
- It will unlock vacant houses for rental purposes
- It will enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
(2) Helping migrants
- Rental housing is a preferred option for students and migrants.
- It will balance the rights of both landlords and tenants.
(3) Effective negotiations
- There is no monetary ceiling under MTA, which enables parties to negotiate and execute the agreement on mutually agreed terms.
- It will give confidence to landlords to let out their vacant premises, the housing ministry said.
- The Act also tries to address how a renter can legitimately increase the rent.
(4) Control over encroachments
- It has proposed limiting the advance security deposits to two months’ rent and has also suggested heavy penalties for tenants who decide to overstay.
- Those who do may have to shell out double the rent for two months and even four months.
(5) Rights of tenants
- The landowner cannot cut power and water supplies in case of a dispute and would have to provide a 24-hour notice to tenants to carry out repair work.
- Should the landlords wish to increase the rent, they will need to provide a three-months notice to the tenants.
- These measures would go a long way in protecting the rights of a tenant as it regulates the rent hikes that tenants have had to face.
Challenges ahead
While the proposals of the Act have been widely welcomed, their implementation may not be very simple.
(1) Not binding nature
- The Act is not binding on the states as land and urban development remain state subjects.
- Like in the case of RERA, the fear is that states may choose not to follow guidelines, diluting the essence of the Model Act.
(2) Issues over paltry rents
- Also, the Model Act is prospectively applicable and will not affect the existing tenancies.
- The repeal of rent control Acts can be governed by political exigencies.
- This may be a complicated process in cities like Mumbai, where tenants have occupied residential properties in prime areas for absurdly low rents.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Digital Banks
Mains level: Read the attached story
Last week, federal think tank NITI Aayog released a report on digital banks, offering a template for their licensing in India. It said India already has a technology stack to facilitate digital banks.
What are the planned Digital Banks?
- Digital Banks or DBs are full-scale banks to be licensed under the Banking Regulation Act.
- Unlike traditional banks, which require brick-and-mortar infrastructure or physical access points, digital banks simply leverage technology to provide banking services through mobile applications and internet-based platforms.
- DBs behave like any other scheduled commercial bank, accepting deposits, giving loans etc.
- They will follow prudential and liquidity norms at par with the commercial banks.
- Globally, terms like “digital banks”, “neobanks”, “challenger banks”, and “virtual banks” are often used interchangeably.
What about digital banking units then?
- The Union budget for FY23 proposed to establish digital banking units (DBUs) of scheduled commercial banks in 75 districts.
- The objective is to ensure that the benefits of digital payments, banking and fintech innovations reach the grass-roots.
- DBUs are treated as banking outlets, equivalent to a branch.
- These units do not have a legal personality and are not licensed under the Banking Regulation Act.
- Only existing commercial banks may establish DBUs. In contrast, digital banks will be licensed.
- These banks are expected to ensure credit penetration to underserved MSMEs and retail customers.
What purpose will digital banks serve?
- Digital banks are expected to further innovation and support the underserved segments.
- However, some believe that it will only cater to customers with some level of comfort with digital transactions.
- According to them, RBI too is not comfortable with this model as the central bank believes that cash handling and credit decisions require physical branches.
What does NITI Aayog suggest for DBs?
- In the first phase, a restricted digital bank licence may be given, with limits in terms of volume/value of customers. In the second stage, the licensee will be put in a regulatory sandbox.
- Finally, a ‘full-scale’ licence may be granted contingent on satisfactory performance.
- A digital bank will be required to have initial capital of ₹20 crore while in the regulatory sandbox.
- Upon progression from the sandbox, a full-stack digital business/consumer bank will be required to bring in ₹200 crore capital.
What has been the global experience?
- The UK has led the pack in terms of digital banks, with new entrants in the form of Monzo and Starling Bank.
- Several jurisdictions in the South East Asian region have witnessed the rise of digital banks.
- Hong Kong has issued separate licences for virtual banks.
- As of May 2020, the Hong Kong Monetary Authority has licensed 8 entities out of 33 applications.
- In South Korea, Kakao Bank and K Bank operate as internet banks licensed under the Banking Act.
- The Philippines has approved six licenses for digital banks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Raja Ravi Varma
Mains level: Evolution of modern indian art
Ahead of the 175th birth anniversary fete of the legendary artist Raja Ravi Varma, erstwhile royal family of Kilimanoor has urged the Union government to posthumously confer the Bharat Ratna, the country’s highest civilian award, on him.
Raja Ravi Varma
- Raja Ravi Varma was born in April 1848 in Kilimanoor, Kerala, to a family which was very close to the royals of Travancore.
- Often referred to as the father of modern Indian art, he is widely known for his realistic portrayal of Indian gods and goddesses.
- While he majorly painted for the royalty, he is also credited for taking art to the masses with his prints and oleographs.
- At a young age, he would draw animals and everyday scenes on the walls in indigenous colours made from natural materials such as leaves, flowers and soil.
- His uncle, Raja Raja Varma, noticed this and encouraged his talent.
- Patronised by Ayilyam Thirunal, the then ruler of Travancore, he learnt watercolour painting from the royal painter Ramaswamy Naidu, and later trained in oil painting from Dutch artist Theodore Jensen.
How he become an artist of the royals?
- Varma became a much sought-after artist for the aristocrats and was commissioned several portraits in late 19th century.
- Arguably, at one point, he became so popular that the Kilimanoor Palace in Kerala opened a post office due to the sheer number of painting requests that would come in for him.
- He travelled across India extensively, for work and inspiration.
Fame as a notable painter
- Following a portrait of Maharaja Sayajirao of Baroda, he has commissioned 14 Puranic paintings for the Durbar Hall of the new Lakshmi Vilas Palace at Baroda.
- Depicting Indian culture, Varma borrowed from episodes of Mahabharata and Ramayana for the same.
- He also received patronage from numerous other rulers, including the Maharaja of Mysore and Maharaja of Udaipur.
- As his popularity soared, the artist won an award for an exhibition of his paintings at Vienna in 1873.
- He was also awarded three gold medals at the World’s Columbian Exposition in Chicago in 1893.
Nature of his artforms
- Much of his celebrated art also borrows heavily from Indian mythology.
- In fact, he is often credited with defining the images of Indian gods and goddesses through his relatable and more realistic portrayals often painted with humans as models.
- The depictions include Lakshmi as the goddess of wealth, Saraswati as the goddess of knowledge and wisdom, and Lord Vishnu with his consorts, Maya and Lakshmi.
How he took Indian art to the masses?
- Raja Ravi Varma aspired to take his art to the masses and the intent led him to open a Lithographic Press in Bombay in 1894.
- The idea, reportedly, came from Sir T Madhava Rao, former Dewan of Travancore and later Baroda, in a letter where he pointed out to Varma that since it was impossible for him to meet the large demand for his work, it would be ideal for him to send some of his select works to Europe and have them produced as oleographs.
- Varma, instead, chose to establish a printing press of his own.
- The first picture printed at Varma’s press was reportedly The Birth of Shakuntala, followed by numerous mythological figures and saints such as Adi Shankaracharya.
Major works
- It is believed that he had made around 7,000 paintings before his death at the age of 58.
- But only one painting is now left in ‘Chithrashala,’ the artist’s studio at Kilimanoor Palace — an unfinished portrait of ‘Parsi lady’ which was his last work.
- Some of his popular works include ‘Lady in the Moonlight’, ‘Nair Lady Adorning Her Hair’, ‘Malabar Lady with Violin’, ‘Lady with Swarbat’, and ‘Maharashtrian Lady with Fruits’.
Try this PYQ:
There are only two known examples of cave paintings of the Gupta period in ancient India. One of these is paintings of Ajanta caves. Where is the other surviving example of Gupta paintings?
(a) Bagh caves
(b) Ellora caves
(c) Lomas Rishi cave
(d) Nasik caves
Post your answers here.
Back2Basics: Bharat Ratna
- Bharat Ratna – ‘Jewel of India’ is the highest civilian award of the country.
- It is conferred for exceptional Service to the nation in various fields such as Science arts, literature and recognition of public service of the highest order.
- The award can be granted posthumously and since its establishment, seven awards were granted posthumously.
- The award was established by formal President of India Rajendra Prasad on 2nd January 1954.
- The concept of awarding this award posthumously was not there in the original statute declared in January 1954.
- Provision to award posthumously was finally added in January 1966 statute of this prestigious award.
- The medallion is cast in Bronze.
- The medallion is designed like the leaf of a pipal tree with a sunburst in the centre and Bharat Ratna is engraved underneath it.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tribal revolts in news
Mains level: Tribals uprising and thier contribution to the freedom struggle
Addressing the nation after being sworn in, President Murmu invoked four tribal revolutions that she said had strengthened tribal contribution to the freedom struggle.
[1] Santhal revolution
- On June 30, 1855, over 10,000 Santhals were mobilised by their leaders — Kanho Murmu, Chand Murmu, Bhairab Murmu and Sidho Murmu – to revolt against the East India Company over oppression by revenue officials, zamindars, and corrupt moneylenders.
- The landmark event in tribal history, referred to as Santhal Hul, took place in Bhognadih village in present-day Jharkhand.
- Soon after their open rebellion, Santhals took to arms to resist imposition of East India Company laws.
- The seeds of the protracted rebellion, however, were sown in 1832 where the East India Company created Damin-i-koh region in the forested belt of Rajmahal hills, and invited the Santhals to settle there.
- Over the years, Santhals found themselves at the receiving end of exploitative practices aided by the British.
- After the rebellion broke out in 1855, both sides continued clashing till the uprising was crushed in 1856.
- The British defeated the Santhals using modern firearms and war elephants in decisive action in which both Sidho and Kanho died.
[2] Paika rebellion
- In several recent descriptions, the 1817 Paika Rebellion in Odisha’s Khurda is referred to as the “original” first war of Indian Independence.
- That year, the Paikas – a class of military retainers traditionally recruited by the kings of Odisha – revolted against the British colonial rulers mainly over being dispossessed of their land holdings.
- In the run-up to the revolt, the British had dethroned and exiled the Khurda king in 1803, and then started introducing new revenue settlements.
- For Paikas, who were into rendering martial services in return for hereditary rent-free land (nish-kar jagirs) and titles, this disruption meant losing both their estates and social standing.
- The trigger for the revolt came as some 400 Kondhs descended from the Ghumusar area to rise against the British.
- Bakshi Jagabandhu Bidyadhar Mohapatra Bharamarbar Rai, the highest-ranking military general of the banished Khurda king, led an army of Paikas to join the uprising of the Kondhs.
- The Paikas set fire to government buildings in Banapur, killed policemen and looted the treasury and the British salt agent’s ship docked on the Chilika.
- They then proceeded to Khurda and killed several British officials.
- Over the next few months, the Paikas fought bloody battles at several places, but the colonial army gradually crushed the revolt.
- Bakshi Jagabandhu escaped to the jungles, and stayed out of reach of the British until 1825, when he finally surrendered under negotiated terms.
[3] Kol revolt
- The Kols, tribal people from the Chhota Nagpur area, rose in revolt against the British in 1831.
- The trigger here too was the gradual takeover of tribal land and property by non-tribal settlers who were aided by new land laws.
- The simmering discontent over the economic exploitation of the original inhabitants led to an uprising led by Buddhu Bhagat, Joa Bhagat and Madara Mahato among others.
- The Kols were joined by other tribes like the Hos, Mundas and Oraons.
- The tribals fought with traditional weapons taking the battle to colonial forces who finally overpowered them with modern weaponry.
- The uprising, which spread to areas like Ranchi, Hazaribagh, Palamau, and Manbhum and continued for almost two years before being snuffed out, mainly targeted colonial officials and private money-lenders.
[4] Bhil uprising
- After the British intruded into the Bhil territory in Maharashtra’s Khandesh region, the tribals pushed back fearing exploitation under the new regime in 1818.
- The revolt was led by their leader, Sewaram and was brutally crushed using the British military might.
- This uprising again erupted in 1825 as the Bhils sought to take advantage of reverses being suffered by the British in the first Anglo-Burmese war.
Also read:
Important Rebellions and Peasant Movements
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: N-Treat technology
Mains level: Best practices to treat wastewater
To prevent sludge and sewage from stormwater drains from flowing into the sea, Brihanmumbai Municipal Corporation (BMC) has planned in-situ treatment of sewage from the drains with the help of N-Treat Technology developed by IIT-B.
What is N-Treat technology?
- N-Treat is a seven-stage process for waste treatment that uses screens, gates, silt traps, curtains of coconut fibres for filtration, and disinfection using sodium hypochlorite.
- According to the detailed project report for N-Treat, it is a natural and environment-friendly way of sewage treatment.
- It’s setup takes place within the nullahs channels that is through the in-situ or on-site method of treatment, and does not require additional space.
What does the process involve?
(1) Screening
- The first stage involves screening to prevent the entry of floating objects such as plastic cups, paper dishes, polythene bags, sanitary napkins, or wood.
- IIT-B has proposed to install three coarse screens, the first with 60 mm spacing for removal of large floating matter, the second with 40 mm spacing, and the third with 20 mm spacing.
(2) Slit trap
- The second stage has proposed construction of a silt trap, which creates an inclination and ‘parking spot’ on the bed of the nullah for sedimentation.
(3) Bio zones
- The next three stages are installation of ‘bio zones’ in the form of coconut fibre curtains that will act as filters and promote growth of biofilm to help in decomposition of organic matter.
- A floating wetland with aquatic vegetation planted on floating mats has been proposed.
(4) Florafts
- Aside from a floating bed on the surface, IIT-B has proposed suspending floating rafts vertically, called florafts.
- Their hanging roots would provide a large surface area for passive filtration as well as development of microbial consortium.
- In the floating wetlands, plants acquire nutrition directly from the water column for their growth and development, thus reducing the organic as well as inorganic pollutants.
- The final stage for sewage treatment will include disinfection using sodium hypochlorite, to kill the bacteria in the water.
How will it be used by BMC?
- A senior civic official said: “BMC approached IIT-B to submit a Detailed Project Report for the project.
- The N-Treat method suggested to the civic body is cost-effective, as it does not require manual pumping, and saves electricity, and does not require extensive manpower for maintenance.”
- The floating matter will be removed daily, silt deposits from the silt traps will be removed once in four months, and plants will be trimmed as required.
- The floating matter collected every day will be disposed of at the nearest municipal waste collection point daily.
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