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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Economic growth and the government disintermediation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India's fiscal challenge and options

Context

  • Between spending and saving, governments are generally better at the former. High growth comes with the advantage that government revenue expands and gets spent, as is happening this fiscal. But this is also habit-forming. If growth tapers down as is expected in FY 2024 cutting back government spending will be politically rocky just before a general election. Better then, to get selective on spending early on.

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Current economic indicators

  • Finance Minister Nirmala Sitharaman took over the hot seat in May 2019. True to character, she resolved to pick up this rolling can by tabling in the FY 2021 budget, an amount of INR 2.64 trillion (1.2 percent of GDP) to pay these overdues.
  • India, yet again, in an era of high inflation and high oil import prices. It has taken courage and sagacity to reduce the FD from 9.2 percent (FY 2021—the COVID-19 year) to a targeted 6.4 percent this fiscal.

Challenges to establish a declining trend back towards an FD of 3.5 percent of GDP

  • The oil slick of global uncertainty and inflation: Oil price uncertainties, created by the Ukraine standoff, which was partially cushioned via nimble Indian diplomacy resisting the boycott of cheaper Russian oil, has kept imported oil at US$77.7 per barrel in January 2023. But the ongoing opening up of China could firm up oil prices.  
  • India’s high-debt burden compromises fiscal resilience: Interest payments in FY 2023 (budgeted) at INR 9.4 trillion, are the largest expense outlay bucket, accounting for 43 percent of budgeted Union net revenue receipts, up from 41.7 percent in FY 2021. Defence and domestic security services at 15 percent come next, followed by subsidies (food, fertilizers, and fuel) at 14 percent and inflation-indexed government pensions at 9 percent.
  • Infrastructure lags: Infrastructure remains a drag on growth although intercity highways have improved. Multimodal transport solutions remain underdeveloped as do train stations and bus terminals in most towns and rural areas. The competitiveness of major Indian ports in 2018 was ranked 42nd well below China, Malaysia and Thailand- pulled down by low outcomes in infrastructure and turn-around time. The gas grid remains nascent with just 10.1 million connections versus 309 million users for LPG canisters a more volatile substitute for cooking fuel, than piped natural gas.

What is the worrying situation?

  • Inflation: The Reserve Bank of India (RBI) expects retail inflation, assessed at 5.78 percent (December 2022) to trend downwards in FY 2024. But signals of embedded inflation via core inflation (other than volatile food and fuel) above 6 percent are worrying.
  • Disrupted energy supply: A disruption in energy supplies could upset sanguine inflation expectations.
  • Taming inflation would increase fiscal crunch: Taming the resulting inflation by reducing taxes on the retail supply of petroleum products would increase the fiscal crunch.
  • Interests funded by additional borrowings is risky strategy: High-growth economies can afford to fund by borrowings as can start-ups, which borrow against their future growth prospects. For a large, lower middle-income economy like India, with historically moderate long-term growth rates (4 to 6 percent), it compromises reserve fiscal capacity to respond, through counter-cyclical measures, to economic downturns induced by economic shocks a risk-laden strategy.

What India should do?

  • Resume much delayed disinvestment: Resume the much-delayed privatisation and disinvestment of public sector enterprises and government-owned financial sector entities.
  • Make Indian railway and autonomous entity: Second, make Indian Railway an autonomously regulated, commercially run entity, providing a surplus to the government rather than looking for budgetary support.
  • Encourage public finance outlays: Maximise the economic impact by encouraging public finance outlays to be driven by competitive metrics of allocative efficiency across investment options and program/project implementation models.

Conclusion

  • For a new phase of growth, government disintermediation is appropriate. It allows for increased competition and innovation in the private sector, leading to greater efficiency and economic growth. India has momentum. What it needs is for the reins to be lightly held.

Mains question

Q. What obstacles does the Indian economy face as it enters a new era of growth, and what should India do?

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Wildlife Conservation Efforts

Herpetofauna and the Impact of crop pesticides

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Herpetofauna , Intraguild predation

Mains level: Herpetofauna , ecological importance and threats

Herpetofauna

Context

  • The demand for land for food production always results in an uncomfortable trade-off between agricultural expansion and species conservation. One can see an example of this trade-off in paddy fields, whose unique combination of wet and drylands provide ideal habitats for amphibians and reptiles. However, Amphibians and reptiles are bearing the brunt of crop intensification.

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Ecological services provided by herpetofauna

  • Herpetofauna: Amphibians and reptiles are cold-blooded animals, together referred to as herpetofauna, provide immense ecological services.
  • As biological control agents: Frogs and toads, for instance, act as biological control agents by feeding on crop pests. Several salamanders and tadpoles of frogs help in controlling mosquito and mosquito-borne diseases by feeding on the larvae.
  • Efficient pollinators and improves soil quality: They also help improve soil quality and aeration, aid in dispersal of seeds and in pollination. There are almost 40 species of lizards including skinks and geckos that are efficient pollinators.

Threats faced by herpetofauna

  • Increased use of pesticides and fertilizers: The diversity and abundance of these herpetofauna are rapidly declining with increased use of pesticides, fertilisers, land conversion, changes in cropping systems and the reduced proportion of natural vegetation.
  • Threatened by agriculture and management practices: According to the International Union for Conservation of Nature (IUCN), 1,532 species of Anurans (frogs) and 825 species of reptiles in the world are critically endangered, endangered and vulnerable due to agriculture and its management practices.
  • Particularly threatened in India: They appear to be particularly threatened in India which has a high amphibian diversity most of them are endemic to the region and, as per the UN Food and Agriculture Organization, had the largest cropland area over the last decade, followed by the US and China.
  • Being cold-blooded, amphibians and reptiles have unique physiological demands: They are extremely sensitive to microclimates (with a narrow range of soil humidity, moisture, light flux, acidity, air and soil temperature) and microhabitats (they have small habitats like grass cover and low dispersal range; maximum lifetime dispersal for frogs and toads is 12 km). This makes them particularly susceptible to agricultural intensification. However, the researchers find a distinct difference in the way it affects amphibians and reptiles.

Survey to understand the impact of crop intensification

  • To understand the impact of crop intensification on the populations and diversity of herpetofauna, researchers from the University of Calcutta conducted a year-long survey of farm lands in Odisha’s Baleswar district.
  • Almost 90 per cent of the 250,550 hectares of cultivable land in the district is under paddy.

Did you know?

  • Baleswar district, of Odisha is known as “Rice bowl of the state”.

Comment if any place in your state is recognized as such

Findings of the Survey

  • Low diversity in high cropping intensity: The abundance of amphibians was almost half and their diversity was low in areas with high cropping intensity, pesticide application and low natural vegetation when compared with areas where less-intensive farming is practised.
  • Amphibians are more exposed to pesticides: The difference is because amphibians are more exposed to pesticide contamination than reptiles as their skin is highly permeable and performs both respiration and water uptake.
  • Species are going through an extinction debt: The researchers suggest the species are rather going through an extinction debt wherein there is a lag between the impact of agricultural intensification on them and their response to it.
  • Reptiles face a higher threat from conflicts with humans: The real impact of the current intensification of agriculture on reptiles would be felt much later. When compared with amphibians, reptiles like snakes face a higher threat from conflicts with humans. Encroachment of forest areas and misconceptions and myths result in the indiscriminate killing of snakes irrespective of them being venomous or harmless.
  • Intraguild predation: The researchers also find that in areas where the diversity of the frog population is lesser, the numbers of beneficial arthropods have reduced due to intraguild predation. If this reduction in populations of both predators continues, it will disrupt the natural system of suppressing crop pest abundance.

What is mean by intraguild predation?

  • A phenomenon where more than one species feed on the same prey and therefore competitors feed on each other.
  • For example, when one predator, like a lion, hunts and kills another predator, like a hyena, for food.
  • It’s when animals that are both hunters, compete against each other for the same prey.
  • It is just like how two kids might fight over a candy bar.

Way ahead

  • The study shows unless a threshold abundance of frogs is maintained, their impacts will be far from beneficial to agriculture.
  • Semi-natural and natural vegetation and buffer strips such as ditches, provide chances to increase numbers of alternate prey, intermediate hosts of target pests and increase the availability of nutritional plant resources.
  • Semi-natural patches are beneficial for arthropod communities and can raise their numbers to enhance crop pest regulation.

Conclusion

  • To optimize the benefits from existing farmland, the researchers recommend that biodiversity research be holistic so more organisms get targeted ecological services.

Mains question

Q. What are herpetofauna? Highlight the Ecological services provided by herpetofauna and discuss the threats faced by herpetofauna.

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Russian Invasion of Ukraine: Global Implications

Indo-pacific and the New Eurasia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: New Eurasia opportunities and challenges for India

pacific

Context

  • Japan, which invented the contemporary geopolitical idea of the Indo-Pacific, is now well on its way to changing the way we think about the relationship between Asia and Europe. In his swing through Europe last week, Prime Minister Fumio Kishida’s message was simple, the security of Europe and the Indo-Pacific is indivisible.

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How Japan shaped the idea of Indo-pacific?

  • Japan is not alone for Indo-pacific anymore: Building on the ideas of his predecessor, the late Shinzo Abe, Kishida is determined to build strong military partnerships with Europe. Together Japan, South Korea and Australia are bridging the divide between Asia and Europe long seen as separate geopolitical theatres.
  • South Korea raising profile in Europe: South Korea, which does not always see eye to eye with Japan, is also joining the party by raising its profile in Europe. for example, Seoul, is selling major weapons platforms in Poland.
  • Australia eager to bring Europe in Indo pacific: Australia, which has joined the US and UK in the AUKUS arrangement, is equally eager to bring Europe into the Indo-Pacific.
  • Accelerated by Ukraine war: This process has been accelerated by Russia’s war in Ukraine and the alliance between Moscow and Beijing.

The idea of Eurasia

  • Many used it as a neutral term: The idea of Eurasia is not new, many used it as a neutral term to describe the vast landmass that connected Europe and Asia.
  • Separate political spheres: Despite continental continuity, Europe and Asia emerged as separate political and cultural spheres over the millennia.
  • Russia as European and Asian: Russia, which straddles this space, saw itself as both a European and Asian power but had trouble becoming a part of either. When post-Soviet Russia’s effort to integrate with the West soured in the 2000s, it developed Eurasia and Greater Eurasia as new geopolitical constructs.
  • Putin’s Eurasian strategy: Consolidating the former Soviet space, restoring influence in Central Europe, building a strong alliance with China, and limiting Western influence in the continental heartland became part of Putin’s Eurasian strategy.

China-Russia alliance

  • Altering geopolitical dynamics: Well before Kishida and South Korean President Yoon Suk-yeol turned to Europe, it was Xi Jinping and Vladimir Putin who altered the geopolitical dynamic in Eurasia.
  • Alliance without limits: Days before he ordered his armies into Ukraine, Putin travelled to Beijing last February to sign an agreement declaring an alliance without limits and no forbidden areas.
  • China’s tilt towards Russia: China, which had made a largely successful effort to cultivate Europe since the 1990s, deliberately avoided taking sides in Europe’s conflicts with Russia. But on the eve of the Ukraine war, Xi chose to tilt towards Moscow by blaming NATO for the crisis in Ukraine.
  • New kind of Eurasian alliance: Together, Putin and Xi unveiled a Eurasian alliance that they might have hoped would deliver the long-awaited coup de grace to the global hegemony of the West. What it did instead was to not only strengthen the Western alliance in Europe but also provide the basis for a new kind of Eurasia an alliance between China’s East Asian neighbours and Russia’s West European neighbours.

What are the Challenges for India?

  • For India, the rise of Eurasia is making it harder to ride on two boats at the same time: Until now, India could easily hunt with the maritime coalition the Quad in the Indo-Pacific and run at the same time with the continental coalitions led by Russia and China.
  • US Europe and Japan on the one hand and China, Russia on the other: The conflict between the US, Europe, and Japan on the one hand and China and Russia on the other is now acute and shows no signs of immediate amelioration.
  • India’s security challenge on Himalayan frontier: On the downside, then, India’s mounting security challenges from China on the Himalayan frontier and the tightening embrace between Moscow and Beijing will mean the shadow over India’s continental strategy will become darker in the days ahead.
  • Strategic capabilities in partnership: On the upside, the possibilities for strengthening India’s strategic capabilities in partnership with the US and Europe as well as Japan, South Korea and Australia have never been stronger.

Opportunities for India may include

  • Economic cooperation: Increased economic cooperation and trade between India and countries in Europe and Asia
  • India’s larger role in global affairs: The potential for India to play a larger role in regional and global affairs as a result of increased connectivity and cooperation
  • To address security concerns in Indo-Pacific: Opportunities for India to strengthen its ties with Japan and other countries in the region to address security concerns in the Indo-Pacific

Conclusion

  • Japan’s strategy of promoting greater connectivity and cooperation between Europe and Asia could present both opportunities and challenges for India in terms of economic cooperation and geopolitical influence. India will have to carefully navigate and balance its relationships with various countries and groups in the region to maximize the opportunities and minimize the challenges.

Mains question

Q. Japan is now well on its way to changing the way we think about the relationship between Asia and Europe. In this backdrop discuss opportunities and challenges for India.

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Freedom of Speech – Defamation, Sedition, etc.

Disclosure of Journalistic Sources by Press

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 19

Mains level: Freedom of press

press

While rejecting a closure report filed by the CBI, a Delhi court said there is “no statutory exemption in India to journalists from disclosing their sources to investigating agencies”.

What is the news?

  • The CBI had sought to close its investigation on how certain news channels and a newspaper had aired and published reports related to a disproportionate assets case against a leader.
  • It had argued that the “documents used by the news channel were forged” but it could not be established who forged the documents.
  • This certainly amounts to creation of fake news.

Legal protection for disclosure of Journalistic Sources

Ans. Freedom of Speech and Expression under Article 19

  • In India, there is no specific legislation that protects journalists from being asked to disclose their sources.
  • Article 19 of the Constitution guarantees the right to freedom of speech and expression to all citizens.
  • Investigative agencies can issue notice to anyone, including journalists, to provide information.
  • Like any citizen, a journalist can be compelled to give evidence in Court.
  • If she does not comply, the journalist can face charges of Contempt of Court.

Freedom of Press

  • The fundamental right to freedom of speech and expression under Article 19 includes press freedom.
  • This covers an entire process from newsgathering, editorial judgement, publication and distribution of printed matter.
  • Press freedom covers all four stages.

 What have courts said on this issue?

  • While the Supreme Court broadly recognises the freedom of the press, including the right of journalists to ensure the protection of their sources, various courts have ruled differently on this issue.
  • In the Pegasus spyware case (2021), the Court underlined that the protection of journalistic sources is one of the basic conditions for the freedom of the press.
  • In 2019, the Supreme Court in a review petition in the Rafale case overruled the Centre’s objections on the petitioner’s claims since they relied on purportedly “stolen” confidential documents.

Is there any legal enforcement?

Ans. No

  • Courts have in “public interest asked journalists to disclose their sources. In the absence of a specific law, it is often the discretion of a Court.
  • Under the Press Council of India (PCI) Act, of 1978, the Press Council has powers of a civil court to deal with complaints when a newspaper has “offended against the standards of journalistic ethics.”
  • However, the Council cannot force a newspaper, news agency, journalist, or editor to reveal their sources during the proceedings.
  • The Whistleblower Protection Act, 2014 offers protection to people disclosing acts of corruption, wilful misuse of power, or criminal offences by public servants, in public interest.

Recommendations for a change in law

Ans. Recognition under Indian Evidence Act

  • The Law Commission of India in its 93rd Report in 1983 recommended recognising journalistic privilege by amending the Indian Evidence Act.
  • In its 185th report on the amendments to the Evidence Act, the Law Commission again suggested this amendment.

Position in other countries

  • United Kingdom: The Contempt of Courts Act 1981 creates a presumption in favour of journalists who want to protect the identity of their sources. However, that right is subject to certain conditions in the “interest of justice”.
  • United States: Although the First Amendment guaranteeing free speech in the United States specifically mentions the press, the Supreme Court has held that journalists do not have the right to refuse to testify in a federal grand jury proceeding and disclose sources.
  • Sweden: The Freedom of the Press Act in Sweden is a broad protection of rights of journalists and even extends to state and municipal employees who might share information with journalists freely. In fact, a journalist who reveals his or her source without consent may be prosecuted at the behest of the source.
  • France and Germany: Journalists can refuse to disclose sources in an investigation.

Need for non-disclosure

  • Debated issue: The right of journalists to use and protect confidential sources is a debated topic.
  • Vitality of larger public interest: Many journalists say that confidential sources are an essential tool in the search to uncover information of great public interest.
  • Prevent oppression: It is a reporter’s need and duty to protect the identity of the source of his information or else vital information of concern to the people in a democracy would be suppressed.

Why are we discussing this?

  • Media malpractices are on rise: When the public interest is compelling and the disclosure outweighs the public interest then the sources can be revealed.
  • Serious allegations and media trial: The court can also require disclosure of the source of the news relates to a public office or public official and serious allegations have been made against him.
  • Defamation by media: Also if there is a defamatory article against a person then the Court may compel the journalist to reveal his source.

Why media needs protection for sources?

Where source protection is compromised, the impacts can include:

  • Pre-publication exposure of journalistic investigations may trigger cover-ups, intimidation, or destruction of information,
  • Revelation of sources’ identities has legal or extra-legal repercussions,
  • Sources of information running dry,
  • Self-censorship by journalists and citizens.

Conclusion

  • Indian law on source disclosure is limited and has mostly been determined by courts on a case-by-case basis.

 

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

In news: National Export Co-operative Society

Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Export Co-operative Society

Mains level: Not Much

The first consignment expected to be exported by the first-ever National Export Co-operative Society.

Why in news?

  • The Union Cabinet on January 11 approved the setting up Multi-State Seed Society, Multi-State Organic Society and Multi State Export Society.

What is National Export Co-operative Society (NECS)?

  • The society will have an authorised share capital of ₹2,000 crore with the area of operation all over the country.
  • It will be registered under the Multi-State Cooperative Societies (MSCS) Act, 2002.
  • It will have its registered office in Delhi.
  • The Society’s registration will be complete in the next few days and the first consignment will be exported in three months.
  • It will work as an export house for handicrafts, handlooms, khadi and other products, ensuring enhancement of income of the cooperative member entrepreneurs.

Funding of NECS

  • Leading cooperatives like IFFCO, KRIBHCO, NAFED, Amul and National Cooperative Development Corporation (NCDC) will be the promoters of the Society.
  • They will contribute ₹100 crore each.

Working of NECS

  • The Society will be different from the Export Promotion Council under the Ministry of Commerce.
  • This Society will provide end-to-end services to the cooperatives.
  • It will open foreign bank accounts and complete all the formalities, including necessary permissions for exporting a product.
  • The dividends will be shared with the manufacturer instantly and without any brokerage fee.
  • The Society will hire consultants in foreign countries who will help expand its footprint across continents.

Why need cooperatives for export promotion?

  • Cooperatives contribute 28.80% in fertilizer production, 35% in fertilizer distribution, 30.60% in sugar production and 17.50% in milk in the national economy.
  • However, their contribution to exports is negligible.
  • Society will benefit the smallest of farmer or artisan who has a good product but does not have access to the right platform.
  • Through this Society, they will get access to international market and good returns too.
  • Once a product has been tested for international standards, the packaging and export will be done by the Society.

 

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Festivals, Dances, Theatre, Literature, Art in News

[pib] Channapatna Toys

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Channapatna Toys

Mains level: NA

channapatna

Augmented Reality of Channapatna Toys were displayed at First Movers Coalition (FMC) Leadership Meeting of the World Economic Forum.

Channapatna Toys

  • Channapatna toys are a particular form of wooden toys (and dolls) that are manufactured in the town of Channapatna in the Ramanagara district of Karnataka.
  • This traditional craft is protected as a geographical indication (GI) under the World Trade Organization, administered by the state govt.
  • As a result of the popularity of these toys, Channapatna is known as Gombegala Ooru (toy-town) of Karnataka.
  • Traditionally, the work involved lacquering the wood of the Wrightia tinctoria tree, colloquially called Aale mara (ivory-wood).
  • Their manufacture goes back at least 200 years according to most accounts and it has been traced to the era of Hyder Ali and Tipu Sultan in the 18th century.
  • The toys are laced with vegetable dyes and colours devoid of chemicals and hence they are safe for children.

Back2Basics: Geographical Indication (GI)

  • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
  • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
  • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
  • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
  • The tag stands valid for 10 years.

 

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