Note4Students
From UPSC perspective, the following things are important :
Prelims level: Silent Valley National Park
Mains level: NA
A bird survey conducted at the Silent Valley National Park identified 141 species, of which 17 were new. So far, 175 species of birds have been spotted in Silent Valley.
Silent Valley National Park
- It is located in the border of Mannarkkad Taluk of Palakkad district, Nilambur Taluk of Malappuram district, Kerala, and Nilgiris district of Tamil Nadu.
- This national park has some rare species of flora and fauna. This area was explored in 1847 by the botanist Robert Wight.
- It is located in the rich biodiversity of Nilgiri Biosphere Reserve.
- Mukurthi peak, the fifth-highest peak in South India, and Anginda peak are also located in its vicinity.
- Bhavani River, a tributary of Kaveri River, and Kunthipuzha River, a tributary of Bharathappuzha river, originate in the vicinity of Silent Valley.
- The Kadalundi River has also its origin in Silent Valley.
New species spotted
- Brown wood owl, Banded bay cuckoo, Malabar woodshrike, White-throated kingfisher, Indian nightjar, Jungle nightjar, and Large cuckooshrike were among the 17 species newly identified in the Silent Valley.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: E-rupee
Mains level: UPI and future of E-rupee
Context
- Paperless payments have been a big national goal ever since 8 November 2016, when India rendered ₹500 and ₹1,000 currency notes useless in a stunning decision that was upheld as valid by the Supreme Court on recently. Today, our cash intensity remains roughly on the same incline as it was earlier. But online payments have soared. This means a fine policy judgement call will need to be made soon.
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Demonetization: A brief Analysis
- The supreme court rejected petitions arguing that demonetization was done illegally and by 4:1 bench majority Supreme court held the process as satisfactory.
- The overnight note-ban was also found to satisfy a general test of proportionality. For all the hardship caused by weeks of cash starvation, that exercise of authority was not judged too drastic for its aims.
- The extent to which unaccounted-for money was flushed out, terror funding frozen and commerce formalized cannot reliably be estimated, but small businesses were clearly hit hard and India’s economy slowed down soon after.
The changing trend: How we are transacting?
- Rise of digitals payments: The past half decade’s big trend in our use of money has been the exponential rise of a platform that’s part of our digital stack of public goods.
- Spectacular success of UPI: Designed for instant transfers between bank accounts done via mobile phones, the Unified Payments Interface (UPI) has been a spectacular success since its 2016 launch.
- UPI transactions for instance: According to National Payments Corporation of India (NPCI), its operator, UPI processed more than 74 billion transactions in 2022, up 90% over 2021, worth almost ₹126 trillion, a 76% leap.
Examining feasibility of levying user fee on UPI and the E-rupee
- Financial support to UPI: The case for UPI as India’s payment bedrock is weakened by the fact that while it levies no user fee, it isn’t a costless service. Last year, the finance ministry justified financial support for UPI on the ground that it’s a digital public good with immense convenience for the public and productivity gains for the economy.
- Coast benefit review must be done: If public funds are increasingly needed to back UPI as it expands, we must put it to a cost-benefit review as we go along; UPI is already logging huge sums and the total for 2023 may be much more.
- Promoting E-rupee: It’s not just a cost consideration that should make us promote RBI’s retail e-rupee instead for routine payments.
- E-rupee is a direct liability of RBI: The E-rupee’s mass usage would involve circulation of money that’s a direct liability of the central bank (an IOU issued by it, i.e., like cash), which would better serve the cause of economic stability. This is because what RBI owes its currency bearers is entirely free of risk, while the same cannot be said of banks.
- Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
- High currency in circulation: India has a fairly high currency-to-GDP ratio.
- Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.
Conclusion
- For superior systemic safety, the e-rupee should get a significant share of online payment swipes. Even if its holdings earn no interest, it could catch on if the security of its value, ease of liquidity and erasure of data trails (below a limit) are duly advertised. For an e-rupee to aid macro level prudence, it will have to eat into UPI.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India's role in present International relations
Context
- As the great powers get at each other’s throats, the prospects for multilateral agreements have diminished. On both the economic and political fronts, the conflict among the major powers has sharpened. That makes India’s chairmanship of G20 more challenging.
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Historical understanding of major global events
- Major wars and rebalancing: Major wars have always reshaped great power relations and rearranged the international system. Russia’s war against Ukraine will be no exception.
- First world war: The First World War saw the collapse of the Ottoman, Austro-Hungarian, and the Russian empires. It also helped the Bolsheviks in Russia form the Soviet Union, gave birth to new nations in Europe, and accelerated the rise of Asian nationalism.
- The Second World War: Hastened the demise of European colonialism and heralded the rise of the United States and the Soviet Union as the superpowers. Washington and Moscow managed an armed peace in a divided Europe during the Cold War. The process of decolonization saw the birth of a number of new nations in Asia and Africa.
- The Cold War: It led to the collapse of the Soviet Union, undid its sphere of influence in East and Central Europe and led to the rise of the unipolar moment. The era of massive economic interdependence that followed the Cold War saw the rapid rise of China and a slower but definitive emergence of India as a major power.
How Russia and China are colluding to change regional and global world order?
- Asserting themselves against US: Moscow and Beijing, which were willing to acquiesce in the unipolar moment in the 1990s, began to assert themselves against the US-led international order in the 21st century. Europe focused on strengthening its economic and political integration, and sought greater strategic autonomy from the United States.
- Apparent decline of USA: As they drew steadily closer over the last decade, Russia’s Vladimir Putin and China’s Xi Jinping bet that the apparent American decline was real and irreversible. That emboldened Putin to fancy his chances in ending Ukraine’s sovereignty.
- China backed Russia against Europe: The seeming political disarray in the West also convinced Xi to back Putin’s attempt to reorder European regional security order. The partnership without limits and no forbidden areas of cooperation was unveiled less than three weeks before Putin invaded Ukraine on February 24, 2022.
- Only option is diplomacy: As the costs of war mount, the case for diplomacy will gain ground in 2023. While both sides talk about peace, they are also gearing up to fight through the harsh winter. Bridging that gulf between Russian and Ukrainian negotiating positions will occupy diplomacy in 2023.
- Weaker Russia: Whatever the nature of the eventual settlement, Russia will come out weaker from this military misadventure. Putin’s attempts to eliminate Ukraine as an independent nation and roll back the eastward expansion of NATO have backfired. The war has consolidated Ukraine as a nation and NATO has expanded to include Sweden and Finland.
- Self-defense Inability of Europe: The war has also demonstrated Europe’s inability to defend itself against Russia despite the EU’s economy being 10 times larger than that of Russia. But for now, and the near term, Europe will remain dependent on the US to defend it against an expansionist Russia. While Europe is weaker, trans-Atlantic NATO has become stronger.
- US industries are winning: The US is emerging as a big winner from the Ukraine war. American oil companies are raking it in from high energy prices. US weapons like the HIMARS and its high technology companies like SpaceX with its Starlin satellite system and Palantir with its algorithms have actively shaped the battlefield in favour of Ukraine, the underdog in the war. Far more consequential is the fact that without being directly involved in the fight, the US is influencing the direction of the war and has the most leverage in defining the terms of peace in Ukraine.
Impact of Chinese and Russian aggression on Mid-power countries
- US as reliable partner: Thanks to the overreach of Putin and Xi, the US has become a valuable partner for the middle powers at the receiving end of Russian and Chinese bullying.
- Eyeopener for Germany and Japan: Russian expansionism in Europe and Chinese aggressiveness in Asia have compelled Germany in Europe and Japan in Asia to boost their defence spending.
- Regional security Policy: Poland in Europe and Australia and South Korea in Asia have embarked on ambitious regional security policies.
What should be the approach of India?
- India should rework its status: India that long relied on Russia to provide a regional balance of power will have to rework its great power sums. This should not be too hard, given India’s improving relations with the US and Europe and its focus on diversifying its defence partnerships.
- Boosting the domestic capabilities: Delhi, however, will have to move much faster in developing the national capabilities and international partnerships to deter China’s aggressive actions on the border and balance Beijing’s power in the Indo-Pacific. Delhi certainly can’t take for granted that its current economic and political advantages will endure.
- Prevent the breakdown of multilateral system: Finally, it is unlikely the world will return to the kind of multilateralism we got used to since the 1990s. India’s G20 leadership would be a success if it can prevent the complete breakdown of the multilateral system and generate major power consensus on a few issues.
Conclusion
- India should take the advantage of chaotic world order to strengthen itself. Indigenous military capabilities, double digit economic growth and securing core foreign policy interest should be the top priorities for India.
Mains Question
Q. Major wars in world have often culminated into rebalancing of international politics. Comment. What should be the India’s approach towards new emerging global order in the aftermath of Russia-Ukraine war?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Blue economy
Mains level: Blue economy , maritime pollution and associated challenges
Context
- Blue economy relates to presentation, exploitation and regeneration of the marine environment. It is used to describe sustainability-based approach to coastal resources. The worry is that the oceans are under severe threat by human activities, especially when the economic gains come at the cost of maintaining environmental sanity.
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- Origin of the concept: Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
- A project to find best nature inspired and sustainable technologies: Blue Economy began as a project to find 100 of the best nature-inspired technologies that could affect the economies of the world. While sustainably providing basic human needs potable water, food, jobs, and habitable shelter.
- Inclusive approach and objective: This is envisaged as the integration of Ocean Economy development with the principles of social inclusion, environmental sustainability and innovative, dynamic business models
- Environment friendly maritime infrastructure: It is creation of environment-friendly infrastructure in ocean, because larger cargo consignments can move directly from the mothership to the hinterland through inland waterways, obviating the need for trucks or railways
Significance of Maritime transport
- One of the largest employers within ocean-related activities: Maritime transport plays a big role in the globalised market in the form of containerships, tankers, and ports, coastal tourism is the largest employer within ocean-related activities.
- Eighty percent trade happens on the seas: Eighty per cent of world trade happens using the seas, 40 per cent of the world’s population live near coastal areas, and more than three billion people access the oceans for their livelihood.
- Annual value makes up equivalent to seventh largest GDP: A healthy marine environment is essential for a sustainable future for people and the planet. Its value is estimated to be over $25 trillion, with the annual value of produced goods and services estimated to be $2.5 trillion per year, equivalent to the world’s seventh largest economy in gross domestic product (GDP) terms.
- Ensures food security: The oceans, seas and coastal areas contribute to food security and economic viability of the human population. The ocean is the next big economic frontier, with the rapidly growing numerous ocean-based industries.
What are the concerns?
- Human induced Oceanic pollution: Marine activities have brought in pollution, ocean warming, eutrophication, acidification and fishery collapse as consequences on the marine ecosystems.
- Oceans are rarely financial institutions: The ocean is uncharted territory, and rarely understood by financial institutions. Hence preparedness of these institutions in making available affordable long-term financing at scale is nearly zero.
- Developing nations pay heavy price: In this journey of achieving blue economy goals, it is developing nations that pay a heavy economic price.
- Lack of capacity is a critical hindrance: Many of the developing nations have high levels of external debt. Lack of capacity and technology for transition between agri economy and marine economy is also a critical hindrance.
- Not having a elaborative guiding principles is a major concern: There is concern that without the elaboration of specific principles or guidance, national blue economies, or sustainable ocean economies, economic growth will be pursued with little attention paid to environmental sustainability and social equity.
What should be the approach towards achieving Blue economy?
- Inclusive discussion and participation is must: The blue economy is based on multiple fields within ocean science and, therefore, needs inter-sectoral experts and stakeholders. It is imperative to involve the civil society, fishing communities, indigenous people and communities for an inclusive discussion.
- SDG-14 journey cannot undermine the other SDGs: The UN stresses that equity must not be forgotten when supporting a blue economy. Land and resources often belong to communities, and the interests of communities dependent on the ocean are often marginalised, since sectors such as coastal tourism are encouraged to boost the economy.
- Integrated marine spatial planning with national and global expertise is necessary: Developing the blue economy should be based on national and global expertise. It is important that any blue economy transformation should include using integrated marine spatial planning. This would provide collaborative participation of all stakeholders of the oceans, and would make room for debate, discussion and conflict resolution between the stakeholders.
Where does India stand at this hour?
- Suitable natural geography: Vast coastline of almost 7,500 kilometres, with no immediate coastal neighbours except for some stretches around the southern tip. In some sense, India has the advantage of its natural geography
- Opportunity on G20 presidency: It is an opportunity for India to use its G20 Presidency to ensure environmental sustainability, while providing for social equity.
- Rising role and significance: India’s engagement in the blue economy has been rising, with its active involvement in international and regional dialogues, and maritime/marine cooperation.
Conclusion
- Achieving the Blue economy goal would need tremendous human effort, and would call for global cooperation through various legal and institutional frameworks. This also includes the need to develop newer sectors such as renewable ocean energy, blue carbon sequestration, marine biotechnology and ex-tractive activities, with due attention paid to the environmental impacts.
Mains question
Q. What do you understand by mean Blue economy? Highlight the importance of maritime transport and discuss what need to be done to achieve blue economy in a true sense?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Freedom of speech and reasonable restrictions
Mains level: Political free speech
The Supreme Court has held that there is no reason to impose “additional restrictions” on the right to free speech of Ministers and the government is not vicariously liable for disparaging remarks made by them, even if the comments are traceable to state affairs or meant to protect the government.
Why are we discussing this?
- Many politicians make unwarranted statements and tender an apology in return.
- The PM or the CM does not have disciplinary control over the members of the Council of Ministers.
- In a country like ours, where there is a multi-party system and where coalition Governments are often formed, it is not possible at all times for the whip to control the politician’s behavior.
- A derogatory speech that closely resembles hate speech cannot fall within the ambit of the free speech right.
Do ministers and lawmakers have absolute freedom of speech?
- Scope: Ministers and lawmakers enjoy the freedom of speech and expression under Article 19(1) of the Constitution as other citizens and additional restrictions cannot be imposed to curb their right to free speech.
- Restrictions: A five-judge Constitution bench held that curbs on free speech cannot extend beyond what is prescribed under Article 19(2) of the Constitution imposes reasonable restrictions and applies equally on all citizens.
What is the case?
- The proceedings in the case began when the top court took cognisance of a controversial statement made by former UP minister in July 2016.
- He had allegedly termed a gang rape case as part of a “political conspiracy”. While he was let off with an unconditional apology, the Court agreed to examine the larger issue.
- In October 2017, a three-judge bench referred the matter to the constitution bench to decide on various aspects of the matter.
Key issues examined
- Free speech and sensitive issues: The top priority was to examine whether ministers, public functionaries and lawmakers can claim freedom of speech while expressing views on sensitive matters.
- Free speech and state matters: Another key aspect of the matter was whether a statement by a minister in relation to any affairs of the State or for the protection of government can be attributed vicariously to the government itself.
What does Article 19 say?
- Freedom: Article 19(1) (a) guarantees the freedom of speech and expression to all citizens. It is the first condition of liberty and plays an important role in forming public opinion.
- Restrictions: As per Article 19(2), restrictions can be imposed upon the freedom of speech and expression in the interests of:
- Sovereignty and integrity of India,
- Security of the state,
- Friendly relations with foreign states,
- Public order, decency or morality, or
- In relation to contempt of court,
- Defamation, or
- Incitement to an offense
What does the judgment say about free speech restrictions?
- Citizens had the right to petition the Court for violations of Article 19 (freedom of expression) and Article 21 (right to life).
- A statement made by the Minister, inconsistent with the rights of the citizens, may not by itself be actionable.
- It is not possible to extend this concept of collective responsibility to any and every statement orally made by a Minister outside the House of the People/Legislative Assembly.
Way forward
- Legal framework: A proper legal framework was necessary before taking action as a constitutional tort.
- Political will: Parliament could enact legislation or code to restrain citizens in general and public functionaries in particular from making disparaging or vitriolic remarks against fellow citizens.
- Code of conduct: Likewise, political parties should come up with a code of conduct to regulate and control the actions and speech of their functionaries and members.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sixth Schedule
Mains level: Read the attached story
A high-powered committee to ensure protection of land and employment for the people of Ladakh does not address the demand for inclusion of State under the Sixth Schedule of the Constitution.
What is the Sixth Schedule?
- The Sixth Schedule under Article 244 provides for the formation of autonomous administrative divisions — Autonomous District Councils (ADCs).
- ADCs have some legislative, judicial, and administrative autonomy within a state.
- The Sixth Schedule applies to the NE states of Assam, Meghalaya, Mizoram (three Councils each), and Tripura (one Council).
Composition of ADCs
- ADCs have up to 30 members with a term of five years.
- It can make laws, rules and regulations with regard to land, forest, water, agriculture, village councils, health, sanitation, village- and town-level policing, inheritance, marriage and divorce, social customs and mining, etc.
- The Bodoland Territorial Council in Assam is an exception with more than 40 members and the right to make laws on 39 issues.
Why does Ladakh want to be part of the Sixth Schedule?
- Tribal populations: According to the 2011 Census, the tribal population in the UT of Ladakh is 79.61% of the total population.
- Local aspirations: There was much enthusiasm initially, mostly in Leh, after the repeal of Art. 370 which created two new UTs.
- Negligence in erstwhile J&K state: Buddhist-dominated Leh district had long demanded UT status because it felt neglected by the erstwhile state government.
- Denial of Legislature: The enthusiasm waned as it was understood that while the UT of J&K would have a legislature, the UT of Ladakh would not.
- Inadequate representation: The administration of the region is now completely in the hands of bureaucrats with only 1 MP.
- New domicile criteria: The changed domicile policy in Jammu and Kashmir has raised fears in the region about its own land, employment, demography, and cultural identity.
- Statehood demands: A coalition of social, religious, and political representatives in Leh and Kargil has demanded full statehood for Ladakh.
Cultural significance of Ladakh
- Ladakh is historically perceived as a cosmopolitan region with centuries of multiple cultural settings.
- It was an Asian pivot – the people here traversed diverse cultural boundaries and engaged with ideas.
Can Ladakh be included in Sixth Schedule?
- NCST Recommends: In September 2019, the National Commission for Scheduled Tribes recommended the inclusion of Ladakh under the Sixth Schedule.
- Distinct culture: It was predominantly tribal (more than 97%), people from other parts of the country had been restricted from purchasing or acquiring land there, and its distinct cultural heritage needed preservation.
Legal hurdles
- Fifth schedule as an alternative: The Constitution is very clear, Sixth Schedule is for the Northeast. For tribal areas in the rest of the country, there is the Fifth Schedule.
- Exclusive provision for NE: Notably, no region outside the Northeast has been included in the Sixth Schedule.
- Requires Constitutional Amendment: It remains the prerogative of the government. For this, a constitutional amendment is required.
Try this question from CSP 2015:
Q.The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to-
(a) Protect the interests of Scheduled Tribes
(b) Determine the boundaries between States
(c) Determine the powers, authority and responsibilities of Panchayats
(d) Protect the interests of all the Border States
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kalasa-Banduri Nala , Mahadayi River
Mains level: Interstate water disputes
Karnataka’s decision to go ahead with a water diversion project on river Mahadayi has escalated its long-standing dispute on the issue with neighbouring Goa.
What is the Kalasa-Banduri Nala Project?
- The Kalasa Banduri Nala project aims to divert water from Mahadayi to satisfy the drinking water needs of Belagavi, Dharwad, Bagalkot and Gadag districts.
- Though the project was first proposed in the early 1980s, it has remained on paper owing to a dispute between Karnataka, Goa and Maharashtra.
- As per plans, barrages are to be built against Kalasa and Banduri streams — tributaries of Mahadayi — and water diverted towards Karnataka’s parched districts.
The larger issue: Mahadayi dispute
- Mahadayi originates inside the Bhimgad Wildlife Sanctuary in the Belagavi district of Karnataka and flows into the Arabian Sea in Goa.
- Goa, under its then CM Manohar Parrikar, approached the Centre, urging it to assess the available resources in the river and allocate water to the three basin states — Goa, Maharashtra and Karnataka.
- Due to the protests in Goa and also due to concerns over ecological damage, the project was put on hold by the then government.
- The dispute gained steam in 2006, when Karnataka decided to start work on the project.
- Goa then approached the Supreme Court, seeking the creation of a Tribunal to settle the water sharing dispute.
- A Tribunal was finally set up by the UPA government in November 2010.
What did the Tribunal award?
- The Tribunal in 2018 awarded 13.42 TMC water from Mahadayi river basin to Karnataka, 1.33 TMC to Maharashtra and 24 TMC to Goa.
- In Karnataka’s share, 5.5 TMC was to meet drinking water needs and 8.02 TMC was for hydro-electricity generation.
- Of the 5.5 TMC, 3.8 TMC was to be diverted to Malaprabha basin through Kalasa and Banduri Nalas (canals).
- This was notified by the Central government in February 2020.
Issues raised with the Tribunals award
- After the Tribunal award, Goa filed a Special Leave Petition in the Supreme Court in July 2019, challenging the quantum of allocation.
- Subsequently, in October 2020, it filed a contempt petition before the SC, accusing Karnataka of illegally diverting water from the Mahadayi basin.
- Civil appeals were also filed by Maharashtra over the dispute.
Also read:
In news: Interstate River Water Disputes Act, 1956
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: APPU
Mains level: Not Much
India took over the leadership of the Asian Pacific Postal Union (APPU) having its Headquarters in Bangkok, Thailand.
About Asian Pacific Postal Union (APPU)
- APPU is an intergovernmental organization of 32-member countries of the Asian-Pacific region.
- It was formed by International treaty through an Asian-Pacific Postal Convention signed in Yogyakarta on 27 March 1981.
- The organisation has origins dating back to 1961.
- APPU is the only Restricted Union of the Universal Postal Union (UPU) in the region, which is a specialized agency of the United Nations.
- Secretary General leads the activities of the Union and is also the Director of the Asian Pacific Postal College (APPC) which is the largest intergovernmental postal training institute in the region.
Goals and objectives
- The goal of APPU is to extend, facilitate and improve postal relations between member countries and to promote cooperation in the field of postal services.
- As the regional center for various UPU projects, APPU also takes the lead in ensuring that all technical and operational projects of the UPU are fulfilled in the region.
Significance of India’s chair
- The Asia Pacific region accounts for around one-third of the world’s postal workforce and about half of the world’s mail volume.
- India seeks to improve the regional coordination with postal players in the Asia Pacific region to improve the growth of the business through the postal network, to ensure the sustainability of the Union.
- This is the first time an Indian is leading an international organization in the postal sector.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Savitribhai Phule
Mains level: Not Much
Recently, 192nd birth anniversary of Savitribai Phule, w/o Jyotiba Phule (the pioneer of Satyashodhak Samaj) was celebrated.
Who was Savitribai Phule?
- A Dalit woman from the Mali community, Savitribai was born on January 3, 1831, in Maharashtra’s Naigaon village.
- Married off at the age of 10, her husband Jyotirao Phule is said to have educated her at home.
- Later, Jyotirao admitted Savitribai to a teachers’ training institution in Pune.
- Throughout their life, the couple supported each other and in doing so, broke many social barriers.
Pioneering first school for girls in India
- At a time when it was considered unacceptable for women to even attain education, the couple went on to open a school for girls in Bhidewada, Pune, in 1848.
- This became the country’s first girls’ school.
Opposition to Phules’ schools
- The Phules opened more such schools for girls, Shudras and Ati-Shudras (the backward castes and Dalits, respectively) in Pune.
- This led to discontent among Indian nationalists like Bal Gangadhar Tilak.
- They opposed the setting up of schools for girls and non-Brahmins, citing a “loss of nationality”, and believing not following the caste rules would mean a loss of nationality itself.
- Savitribai herself faced great animosity from the upper castes, including instances of physical violence.
- When serving as the headmistress of the first school in Bhide Wada, upper-caste men often pelted stones and threw mud and cow dung on her.
Phule’s role as a social reformer, beyond education
- Infanticide prevention: Along with Jyotirao, Savitribai started the Balhatya Pratibandhak Griha (‘Home for the Prevention of Infanticide’) for pregnant widows facing discrimination.
- Child adoption: The Phules also adopted Yashwantrao, the child of a widow, whom they educated to become a doctor.
- Reforms in marriages: Savitribai Phule also advocated inter-caste marriages, widow remarriage, and eradication of child marriage, sati and dowry systems, among other social issues.
- Denouncing Brahmanical ritualism: As an extension, they started ‘Satyashodhak Marriage’ – a rejection of Brahmanical rituals where the marrying couple takes a pledge to promote education and equality.
- Bubonic plague mitigation: Savitribai became involved in relief work during the 1896 famine in Maharashtra and the 1897 Bubonic plague. She herself contracted the disease while taking a sick child to the hospital, and breathed her last on March 10, 1897.
Savitribai’s literary works
- Savitribai Phule published her first collection of poems, called Kavya Phule (‘Poetry’s Blossoms’), at the age of 23 in 1854.
- She published Bavan Kashi Subodh Ratnakar (‘The Ocean of Pure Gems’), in 1892.
- Besides these works, Matushri Savitribai Phulenchi Bhashane va Gaani (Savitribai Phule’s speeches and songs’), and her letters to her husband have also been published.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Wealth tax
Mains level: Income inequality, Wealth tax and its necessity
Context
- The discourse on efficient, effective and equitable public spending often takes us into the realm of limited resources facing competing demands. India definitely needs to widen its revenue collection as well as base. In this context its time to consider a wealth tax.
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What is wealth tax?
- Wealth tax is a direct tax unlike the goods and services tax or value-added tax, can take several forms, such as property tax, inheritance or gift tax and capital gains tax.
- It aims to reduce the inequalities of wealth.
- It is based on the market value of assets owned by a taxpayer and charged on the net wealth of super rich individuals.
Wealth Tax in India
- Abolished wealth tax: The government abolished wealth tax as announced in the budget 2015. In its place, the government decided to increase the surcharge levied on the ‘super rich’ class by 2% to 12%. (Super rich are persons with incomes of Rs.1 crore or higher and companies that earn Rs.10 crores or higher).
- Abolished to simplify tax structure and discourage tax evasion: The abolition was a move to do away with high costs of collection and also to simplify the existing tax structure thereby discouraging tax evasion.
- No wealth tax at present: India presently does not have any wealth tax i.e., a tax levied on one’s entire property in all forms. It did not impose a one-time ‘solidarity tax’ on wealth in post-covid budgets that could have generated resources for essential public investment.
What is the need for levying a wealth tax?
- High inequality: India’s top 10% population owns 65% of the country’s wealth, while the bottom 10% owns only 6%, according to the World Inequality Database, 2022.
- Massive accumulation of wealth in a few hands: A small section of people has access to a large share of economic assets and resources that remain almost completely untaxed and thus unavailable for public allocation.
- Capital gains tax has limited base: Capital Gains tax exists in India, but applies only to transactions and hence is limited in its base.
- Wealth largely depends on inheritance and privilege: Wealth, much less than even income, has little to do with one’s education, merit or efforts; it is largely dependent on inheritance and opportunities that come with the advantages associated with belonging to one of India’s privileged classes and castes.
- India does not have inheritance tax: India scrapped its estate duty in 1985 and has no inheritance tax.
- Almost entirely exemptions on gift tax: Although the receipt of gifts is subject to income tax in the beneficiary’s hands, it has various exemptions; it is almost entirely exempt if received from within the family, including the extended family of self and spouse. These exemptions shrink the base significantly, as most accumulated wealth is acquired through family, and that remains outside the gift tax’s ambit. Given the cultural context of wealth inheritance, some exemptions make sense, but upper thresholds can be easily added to make it more effective.
Comprehensive PoV: Why wealth tax is necessary at present economic condition
- Wealth of rich doubled during the pandemic but not channelised well to create productive resou: An Oxfam report has highlighted how India’s richest doubled their wealth during the pandemic. This happened for a variety of reasons. despite facing grave financial and economic challenges, has no means to convert any of this growing wealth into productive resources that can generate employment opportunities and push up the incomes of multitudes, which in turn can drive demand for goods something that is needed to counter an economic drag-down.
- There is no sufficient increase in private investment: The government lowered the corporate tax rate significantly from 30% to 22% in 2019-20, which has continued despite the economic crises caused by the pandemic. However, this did not elicit much private investment. Obviously, there is something else at work, and one cannot assume that accumulated wealth in private hands will necessarily be invested in the domestic economy.
- Not only investment is important but also the right application is important: It is not only investment that is important, but also where that investment is going and whether it is creating employment opportunities for the youth.
- Data on youth unemployment: Data from diverse sources show high unemployment rates during May-July 2022 for the youth: 28.3% in the 15-24 age group and an even higher 43.3% for the 20-24 age-group.
- Likely global recession overhead: The likelihood of a global recession and the related layoffs being announced by corporate giants will make the situation worse.
- Jobless growth and wealth inequality: The recent economic growth experienced in India, especially in the post-covid recovery phase, has largely been jobless growth and can further deepen both income and wealth inequalities.
- Economy cannot afford to have such high level of youth unemployment: No economy can afford to have such youth unemployment rates for long without adversely affecting economic growth and social cohesion.
Way ahead
- A number of Latin American countries, including Argentina, Peru and Bolivia, have either introduced or are introducing a progressive annual wealth tax levied on the wealth gains of each year or a one-time covid ‘solidarity’ tax.
- There is no reason why India cannot do so too. This is the right time to introduce a progressive wealth tax along with other fiscal steps that can directly reverse the trend of growing inequalities in the country.
Conclusion
- India needs a shift in its fiscal policy, as suggested by a number of economists, to adopt measures that create employment opportunities and in turn drive demand for products made by small and medium level producers. This would also push up growth while not necessarily widening inequalities.
Mains question
Q. What is wealth tax? Why wealth tax abolished? Considering the present economic situation Discuss the need to levy wealth tax in India?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Status of prisons in India and associated challenges
Context
- Lieutenant-Governor of Delhi (L-G) Vinay Kumar Saxena directed the Delhi Development Authority (DDA) to allocate 1.6 lakh square metres of land to Delhi’s prison department to construct a district prison complex in Narela.
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Background: Recent prison reform debate
- Speech by president of India: At the Constitution Day celebrations organised by the Supreme Court in November 2022, President Draupadi Murmu shared a snippet of her journey with the audience.
- Prisoners unaware of their rights: She reflected on her visits to prisons across India and the circumstances of those incarcerated. She highlighted that these individuals were often unaware of their fundamental rights and had been incarcerated for prolonged periods for minor offences, while their families, struggling with poverty, were unable to bail them out.
- All organs of state must work together: President Murmu emphasised how the judiciary, executive, and legislature must work together to help them, and concluded by poignantly asking: How are we claiming that we are progressing as a nation, if we are still building prisons to address the issue of overcrowding?
What is the problematic architecture of Prison?
- High security prison in Delhi: In phase 1, which is expected to be completed by April 2024, a high-security jail is to be built in the complex with a capacity to lodge 250 high-risk prisoners.
- Stringent security measures: The prison administration has incorporated stringent security measures in the design such as constructing high walls between cells to prevent inmates from viewing others, and interacting with each other, as well as building office spaces between cells to facilitate surveillance.
- Intention of torture: Architecture of prisons is often used as a tool to surveillance, torture, and break the souls of inmates.
- Physical and mental health of prisoners: With this prison design, the Delhi prison administration is essentially creating solitary confinement which will have a severe detrimental effect on prisoners’ mental health.
- Governed by colonial act: Prisons in India are still governed by the Prisons Act, 1894, a colonial legislation which treats prisoners as sub-par citizens, and provides the legal basis for punishment to be retributive, rather than rehabilitative.
- Caste biases in laws: These laws are also highly casteist, and remain largely unchanged since they were drafted by the British. For example, some jail manuals continue to focus on purity as prescribed by the caste system, and assign work in prison based on the prisoner’s caste identity.
- Colonial mindset in prison governance: Organisations such as the Vidhi Centre of Legal Policy have taken us one step further in identifying colonial legal continuities that India must shred, and the manner in which she can do so.
- SC/ST community suffers more: Furthermore, Dalits and Adivasis are over-represented in Indian prisons. The National Dalit Movement for Justice and the National Centre for Dalit Human Rights’ report ‘Criminal Justice in the Shadow of Caste’ explains the social, systemic, legal, and political barriers that contribute to this. Legislations such as the Habitual Offenders Act and Beggary Laws allow the police to target them for reported crimes.
What should be way forward?
- Preventive measures are necessary: We must take preventive measures before we realise that we have travelled far down this road, and have subjected several people to unnecessary trauma and confinement.
- Prison reforms rather than more prisons: With the warning signs beseeching us, we must amplify President Murmu’s message on the need to de-carcerate and stop building more prisons, so that the L-G takes adequate steps in that direction.
Conclusion
- Many prisoners in India continue to suffer for petty crimes just because of lack education and legal assistance. More than 70% of them are economically poor people. Government must address the false cases by police and judicial delay before building more prisons.
Mains Question
Q. Critically examine the present condition of prisons in India? prisons reform should be prior step than building more prisons. Comment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Indian Economy, stock trade indicators and economic growth
Context
- Even as the RBI steadily downgraded India’s growth forecasts for the year from 7.2 per cent in April to 6.8 per cent in December, and the benchmark Nifty50 index ended the year up a mere 4.1 per cent, a handful of stocks delivered outsized returns to investors.
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Expansion of business and reward
- Adani gained because of expansion: The top trade was undoubtedly that of Adani Enterprises with the stock more than doubling over the year. But that should not come as a surprise. After all, the group has embarked on a breathless pace of expansion (both organic and inorganic) that is perhaps unparalleled in recent times.
- Unexpected rise in prices: Share prices of associated companies such as Adani Green have also seen a remarkable surge, catapulting the group into the top leagues of Indian conglomerates.
- Risky price-to-rent ratio: One should be forgiven for thinking that residential real estate in Delhi, with a price-to-rent ratio that ranges between 40-50, is expensive. Adani Enterprises is currently trading at a price-to-equity ratio of 394 as per NSE. The Nifty50, in comparison, is trading just above 21.
Performance of Public sector banks
- SBI AND PNB gained: The year also belonged to Indian banks, more specifically to public sector banks, who at last seemed to have turned the corner. SBI is up more than 30 per cent, while Punjab National Bank is up almost 50 per cent. Others like Bank of Baroda and UCO Bank have more than doubled.
- Outperforming private banks: While private sector bank stocks have also seen a sharp rise Axis is up almost 35 per cent, while ICICI is up 17 per cent, public sector banks have outperformed their private counterparts by a significant margin. The Nifty PSU bank index is up 70 per cent for the year, while in comparison, the private bank index is up only 21 per cent. This was perhaps to be expected.
- Cleaning up balance sheet: Public sector banks have been on a multi-year drive to clean up their balance sheets, and shore up capital. And while there are still some concerns over possible slippages from accounts that were restructured during the pandemic, gross non-performing assets or bad loans were down to 6.5 per cent at the end of September 2022.
- Rising lending rates: Moreover, lending is growing at a brisk pace. And banks’ spreads also have improved with the interest rate cycle on the upswing. In typical fashion, lending rates have risen faster than deposit rates. But, as credit growth picks up and competition for deposits among banks begins to intensify, deposit rates are likely to edge upwards, putting pressure on the spread.
Status of Consumption and auto sector
- Consumption is up: while concerns over the unevenness of the economic recovery persist, consumption stocks have fared well. ITC is up more than 50 per cent, as are Britannia (almost 20 per cent) and HUL (9 per cent).
- Real wages have not increased: But with firms underlining the continuing pressure on volumes with elevated inflation, real wage growth has been subdued in rural areas it is likely that in some product segments, the formalisation theme is still playing out.
- Size of market is not expanding: The bigger formal firms gaining market share even as the overall size of the market isn’t expanding as hoped.
- Auto sector have done well: Among the auto stocks, M&M and Maruti are up 50 per cent and 12 per cent respectively, though Tata motors is down 22 per cent, while among the two-wheelers, both Bajaj and Hero are up.
- Moderate uptick in infrastructure: Infrastructure stocks are a mixed bag. Larsen & Toubro, often thought of as a proxy for the domestic capex cycle, is up almost 9 per cent, recently hitting a new high.
- Impact of PLI scheme: Perhaps, this reflects a pick up in the public sector capex or the private sector push under the government’s production-linked investment scheme.
- Mix picture of steel and cement: Among cement stocks, Ultratech is down, though ACC is up, while among steel stocks, SAIL is down, Tata steel is almost flat, but JSW Steel is up.
IT sector was worst performing
- IT NIFTY significantly down: The sector which has taken a beating has been IT. The Nifty IT index is down 26 per cent.
- Heavy correction in market: All major IT firms from TCS to Infosys to Wipro have witnessed heavy correction.
- Impact of slowdown in advanced economy: Valuations of the sector will be heavily influenced by market views over the slowdown in advanced economies which are major revenue centres for these firms.
Conclusion
- Though stock market doesn’t reflect the entirely true picture of economy but it certainly a good indicator of where the retail investor and common man invest his money. India’s stock market is going to be top 3 in the world. SEBI must protect the retail investor from this highly volatile terrain.
Mains Question
Q. Analyze the performance of the auto and IT sector in India through lenses of stock market? Why the balance sheet of public sector banks is improving?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Regulation of online gaming
The Ministry of Electronics and IT proposed an amendment to bring online gaming under the ambit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
Regulating Online Gaming
The following draft amendments to the IT Act are being placed in the public for comments, feedback till January 17:
- Due diligence: Online gaming intermediaries shall exercise due diligence to ensure that online games with gambling, betting are not permitted.
- Withdrawals or refunds: Online gaming intermediaries shall inform users of policy for withdrawal or refund of deposit, distribution of winnings, applicable fees
- Self-Regulatory Organisation: SRO will determine what constitutes prohibited wagering
- Registration: Self-regulatory bodies will be registered with the MeitY
- Online games: Self-regulatory bodies may register online games of intermediaries that are members and meet prescribe criteria.
- Complaints’ redressal: Self-regulatory bodies will resolve complaints through a grievance redressal mechanism.
What is online gaming?
- Online gaming can refer to any type of game that someone can play through the Internet or over a computer network.
- Most of the time, it refers to video games played over the Internet, where multiple players are in different locations across the world.
- Online gaming also can refer to the idea of gambling over the Internet, through an online casino or an online poker room.
Types of gaming
- The types of online gaming include:
- E-sports (well-organized electronic sports which include professional players) ex. Chess
- Fantasy sports (choosing real-life sports players and winning points based on players’ performance) ex. MPL cricket
- Skill-based (mental skill) ex. Archery
- Gamble (based on random activity) ex. Playing Cards, Rummy
Why is the online gaming industry booming in India?
- Digital India boom in the gaming industry
- Narrowing of the digital divide
- IT boom
Other factors promoting the boom
- Growing younger population
- Higher disposable income
- Inexpensive internet data
- Introduction of new gaming genres, and
- Increasing number of smartphone and tablet users
Prospects of online gaming
- State List Subject: The state legislators are, vide Entry No. 34 of List II (State List) of the Seventh Schedule, given exclusive power to make laws relating to betting and gambling.
- Distinction in laws: Most Indian states regulate gaming on the basis of a distinction in law between ‘games of skill’ and ‘games of chance’.
- Classification on dominant element: As such, a ‘dominant element’ test is utilized to determine whether chance or skill is the dominating element in determining the result of the game.
- Linked economic activity: Staking money or property on the outcome of a ‘game of chance’ is prohibited and subjects the guilty parties to criminal sanctions.
- ‘Game of Skill’ debate: Placing any stakes on the outcome of a ‘game of skill’ is not illegal per se and may be permissible. It is important to note that the Supreme Court recognized that no game is purely a ‘game of skill’ and almost all games have an element of chance.
Need for regulation
- No comprehensive regulation: India currently has no comprehensive legislation with regards to the legality of online gaming or boundaries that specify applicable tax rates within the betting and gambling industry.
- Ambiguity of the sector: The gaming sector is nascent and is still evolving, and many states are bringing about legislation seeking to bring about some order in the online gaming sector.
- State list subject: Online gaming in India is allowed in most parts of the country. However, different states have their own legislation with regards to whether online gaming is permitted.
- Economic advantage: Well-regulated online gaming has its own advantages, such as economic growth and employment benefits.
Issues with online gaming
- Gaming addiction: Numerous people are developing an addiction to online gaming. This is destroying lives and devastating families.
- Compulsive gaming: Gaming by children is affecting their performance in schools and impacting their social lives & relationships with family members. Ex. PUBG
- Impact on psychological health: Online games like PUBG and the Blue Whale Challenge were banned after incidents of violence and suicide.
- Threat to Data privacy: Inadvertent sharing of personal information can lead to cases of cheating, privacy violations, abuse, and bullying.
- Betting and gambling: Online games based on the traditional ludo, arguably the most popular online game in India, have run into controversy, and allegations of betting and gambling.
Why hasn’t a comprehensive law yet materialized?
- Earlier, states like Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka also passed laws banning online games.
- However, they were quashed by state High Courts on grounds that an outright ban was unfair to games of skill:
- Violation of fundamental rights of trade and commerce, liberty and privacy, speech and expression;
- Law being manifestly arbitrary and irrational insofar as it did not distinguish between two different categories of games, i.e. games of skill and chance;
- Lack of legislative Competence of State legislatures to enact laws on online skill-based games.
Way forward
- Censoring: Minors should be allowed to proceed only with the consent of their parents — OTP verification on Aadhaar could resolve this.
- Awareness: Gaming companies should proactively educate users about potential risks and how to identify likely situations of cheating and abuse.
- Regulating mechanism: A Gaming Authority in the central government should be created.
- Accountability of the gaming company: It could be made responsible for the online gaming industry, monitoring its operations, preventing societal issues, suitably classifying games of skill or chance, overseeing consumer protection, and combatting illegality and crime.
- All-encompassing legislation: the Centre should formulate an overarching regulatory framework for online games of skill. India must move beyond skill-versus-chance debates to keep up with the global gaming industry.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Systemically Important Banks (SIBs)
Mains level: Too Big To Fail Banks
State Bank of India, ICICI Bank, and HDFC Bank have again been named as Domestic Systemically Important Banks (D-SIBs) by the Reserve Bank of India (RBI).
What are Systemically Important Banks (SIBs)?
- SIBs are perceived as certain big banks in the country/world. They enjoy a huge customer base and also engage in cross sector activities and are perceived as ‘Too Big to Fail (TBTF)’.
- The system of D-SIBs was adopted in the aftermath of the 2008 financial crisis where the collapse of many systematically important banks across various regions further fuelled the financial downturn.
- A failure of any of these banks can lead to systemic and significant disruption to essential economic services across the country and can cause an economic panic.
- As a result of their importance, the government is expected to bail out these banks in times of economic distress to prevent widespread harm.
- D-SIBs follow a different set of regulations in relation to systemic risks and moral hazard issues.
Types of SIBs
There are two types of SIBs:
- Global SIBs: They are identified by BCBS (BASEL Committee on Banking Supervision)
- Domestic SIBs: They are declared by Central Bank of the country
How are D-SIBs determined?
- Since 2015, the RBI has been releasing the list of all D-SIBs.
- They are classified into five buckets, according to their importance to the national economy.
- In order to be listed as a D-SIB, a bank needs to have assets that exceed 2 percent of the national GDP.
- The banks are then further classified on the level of their importance across the five buckets.
- ICICI Bank and HDFC Bank are in bucket one while SBI falls in bucket three, with bucket five representing the most important D-SIBs.
What regulations do these banks need to follow?
- Due to their economic and national importance, the banks need to maintain a higher share of risk-weighted assets as tier-I equity.
- SBI, since it is placed in bucket three of D-SIBs, has to maintain Additional Common Equity Tier 1 (CET1) at 0.60 percent of its Risk-Weighted Assets (RWAs).
- ICICI and HDFC on the other hand, have to maintain Additional CET1 at 0.20 percent of their RWA due to being in bucker one of D-SIBs.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nilgiri Tahr
Mains level: Not Much
The Tamil Nadu government launched an initiative for the conservation of the Nilgiri Tahr, the State animal.
Nilgiri Tahr
IUCN Conservation Status: Endangered
Wildlife (Protection) Act of India, 1972: Schedule I
- It is endemic to the Nilgiri Hills and the southern portion of the Western Ghats in the states of Tamil Nadu and Kerala in Southern India.
- It is the state animal of Tamil Nadu.
- The Nilgiri tahr inhabits the open montane grassland habitat of the South Western Ghats montane rain forests eco-region.
- At elevations from 1,200 to 2,600 metres (3,900 to 8,500 ft), the forests open into grasslands interspersed with pockets of stunted forests, locally known as sholas.
- Eravikulam National Park is home to the largest population of this Tahr.
- It is estimated that there are 3,122 Nilgiri Tahrs in the wild. It has become locally extinct in around 14% of its traditional shola forest-grassland habitat.
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Nilgiri Tahr Conservation Project
- Under The Nilgiri Tahr project, TN government plans to develop a better understanding of the Nilgiri Tahr population through-
- Surveys and radio telemetry studies;
- Reintroduce the Tahrs to their historical habitat;
- Address proximate threats; and
- Increase public awareness of the species.
- The project is to be implemented from 2022 to 2027.
- Furthermore, October 7 will be celebrated as ‘Niligiri Tahr Day’ in honour of E.R.C. Davidar, who was responsible for pioneering one of the first studies of the species in 1975.
Historic significance of Nilgiri Tahr
- There are multiple references to the Nilgiri Tahr in Tamil Sangam literature dating back to 2,000 years.
- The late Mesolithic (10,000-4,000 BC) paintings highlight the significance of the Tahr in folklore, culture and life.
- It was designated as the State animal in recognition of its ecological and cultural significance.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indian Rhino
Mains level: Not Much
Assam CM announced that no rhinos were poached in the state in 2022.
Indian Rhinoceros
- The Indian rhinoceros (Rhinoceros unicornis) is found only in the Brahmaputra valley, parts of North Bengal, and parts of southern Nepal.
- It has a single black horn that can grow up to 60 cm, and a tough, grey-brown hide with skin folds, which gives the animal its characteristic armour-plated look.
- It is listed as Vulnerable (better than endangered, worse than near threatened) in the IUCN Red List; it was earlier placed in the endangered category.
- It is listed as a Schedule I animal in the Wildlife Protection Act, 1972.
Why are Rhinos poached for horns?
- Ground rhino horn is used in traditional Chinese medicine to cure a range of ailments, from cancer to hangovers, and also as an aphrodisiac.
- In Vietnam, possessing a rhino horn is considered a status symbol.
- Due to demand in these countries, poaching pressure on rhinos is ever persistent against which one cannot let the guard down.
Flourishing population
- According to the WWF, there are around 3,700 Indian rhinos in the wild today.
- Assam’s Kaziranga National Park (KNP) alone has 2,613 animals, according to a census carried out in March 2022.
- There are more than 250 other rhinos in the Orang, Pobitora, and Manas parks.
- The WWF says the “recovery of the greater one-horned rhino is among the greatest conservation success stories in Asia”.
Try this PYQ:
Q. Consider the following statements:
- Asiatic lion is naturally found in India only.
- Double-humped camel is naturally found in India only.
- One-horned rhinoceros is naturally found in India only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: International energy market, decarbonatization and Challenges in front of India
Context
- India marches ahead carrying the same challenge projected as last year that it will have to navigate the choppy waters of a volatile petroleum market without straying from the green path towards clean energy. Energy security cannot be achieved by focusing only on the supply and distribution side of the equation. The demand conservation and efficiency sides are equally important.
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- Fragmented energy market: the energy market has fragmented and energy nationalism is the driving force behind policy.
- Restricted markets for Russia: Irrespective of how and when the Ukraine conflict ends, Russia will not be allowed access to the western markets for as long as President Putin is at the helm of the affairs. One fallout is the tightening energy embrace between Russia and China.
- Declining western orbit and increasing non-aligned approach: Three, OPEC plus one which is, in effect, Saudi Arabia plus Russia has stepped outside the Western orbit. Saudi Arabia has made clear it intends to pursue a Saudi first, non-aligned approach to international relations including with the US.
- Emergence of new energy centres: The new centres of energy power are emergent around countries that have a large share of the metals, minerals and components required for clean energy. China is currently the dominant power.
What should India do against this backdrop?
- Government must increase productivity of existing sources: Discounted Russian crude is an opportunistic panacea. It does not provide a sustainable cover to meet our requirements. To secure such a cover, government must increase the productivity of our existing producing fields; additional resources should be allocated for accessing relevant enhanced oil recovery technologies.
- Secure long- term supply relationship with Saudi Arabia and Iran: Further, it should leverage the country’s market potential to secure a long-term supply relationship with Saudi Arabia and an equity partnership with Iran.
- Enhance the strategic petroleum reserves: It should enhance the strategic petroleum reserves to cover at least 30 days of consumption and remove the sword of Damocles that the CBI/CVC/CAG wield over the heads of the public sector petroleum companies so that their traders can, without fear, take advantage of market volatility.
- Expediate gas pipeline grid: The construction of a pan-India national gas pipeline grid should be expedited.
Analysis: Phasing out coal and the energy transition in India
- Coal one of the major sources of energy in India: Coal will remain the bulwark of India’s energy system for decades. It is no doubt the dirtiest of fuels, but it remains amongst, if not the cheapest, source of energy. Plus hundreds of thousands depend on the coal ecosystem for their livelihood.
- Phasing out is not yet a near possibility: The option of phasing out coal whilst environmentally compelling is not yet a macroeconomic or social possibility.
- Need a balance: In the interim, the government has to find an energy transition route that balances livelihoods and pushes forward the green agenda.
- Steps to be taken: Some small, politically feasible steps in that direction would include increased R&D expenditure for coal gasification and carbon capture and sequestration technologies; setting a carbon tax; the establishment of regulatory and monitoring mechanisms for measuring carbon emissions from industry; the closure of inefficient and old plants and a decision not to approve any new ones.
- Determining competitiveness: In parallel, it would help if Niti Aayog were to pull together a group of economists and energy experts to determine the competitiveness of coal versus solar on a full-cost basis
Other possible measures
- Upgrading the transmission grid: Allocation of funds for upgradation of the transmission grid network to render it resilient enough to absorb clean electrons on an intermittent basis. The sun does not shine at night and the wind does not blow all the time. In parallel, the underlying structural issues currently impeding the scaling up of renewables must be addressed.
- Repairing the balance sheets of discoms through various regulatory reforms: In parallel, the repair of the balance sheets of state distribution companies (discoms), easing the procedures for the acquisition of land and the removal of regulatory and contract uncertainties are most important.
- Building up the domestic chip industry: It will take decades to harness our indigenous resources of the metals and minerals critical for clean energy and build up a domestic chip industry. In the interim, diplomats should secure diversified sources of supply to reduce the country’s vulnerability.
- Developing and commercializing 3G clean energy technologies: Finally, the creation of an enabling ecosystem for developing and commercializing third-generation clean energy technologies like hydrogen, biofuels and modular nuclear reactors. Nuclear, in particular, should be pushed.
Conclusion
- India is not responsible for global warming, but it will be amongst the worst affected. Millions live around its coastline. Their livelihoods will be undermined by rising sea levels. Millions will also be affected by melting glaciers and extremes of temperatures. So irrespective of who is to blame, India has to stay on the path of decarbonization. It cannot afford to develop first and clean up later.
Mains question
Q. What is the current situation of international energy market? What are the measures that India should take in the time of global uncertainty of energy market.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: E- waste and gender justice
Context
- According to the Global E-waste Monitor 2020, out of the total 56.3 million tonnes of discarded e-waste products generated in 2019, only 17.4 percent was officially recorded as being collected and recycled. The rest end up in landfills, in scrap trade markets or are recycled by the informal markets.
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E-waste in India
- Third largest contributor: India is the third largest contributor to this great wall of waste after China and the United States (US) with a whopping 1,014,961.21 tonnes generated in 2019-2020, out of which only 22.7 percent was collected, recycled or disposed of.
- More than 12 million workers: For the 12.9 million women working in the informal waste sector, Waste Electric and Electronic Equipment (WEEE’s) are lifelines as it contains valuable recyclable metals notwithstanding the detrimental effects it can have on health and the environment.
E-waste and Burden on women
- Less women in value chain: Inequalities are particularly pronounced in this largely gender-neutral sector across the value chain which is heightened by the barriers in decision-making roles.
- Negligible percent of women: With reliable data hard to come by from this sector recent reports indicate that an estimated 0.1 percent of waste pickers account for India’s urban workforce with women populating the lower tiers in this economy as collectors and crude separators at landfill sites.
- Men at skilled position: Men unsurprisingly dominate the entire spectrum of skilled positions as managers, machinery operators, truck drivers, scrap dealers, repair workers and recycling traders.
- Women mostly from poor background: Workers in this ‘grey sector’ are some of the most marginalised, poverty-stricken, uneducated people from vulnerable backgrounds with little social or financial security. They remain unprotected at their workplaces, and often are victims of sexual abuse with no bargaining power in selling their goods. All of these factors then act upon their exclusion as cities begin to formalise the waste sector to effectively control discarded goods.
E-waste Impact on Health
- Incineration and leaching: Open incineration and acid leeching often used by informal workers are directly impacting the environment and posing serious health risks, especially to child and maternal health, fertility, lungs, kidney and overall well-being.
- Occupational health hazards: In India, many of these unskilled workers who come from vulnerable and marginalised are oblivious to the fact that that what they know as ‘black plastics’ have far reached occupational health hazards especially when incinerated to extract copper and other precious metals for their market value.
- Exposures to children: This ‘tsunami of e-waste rolling out of the world’, as described in an international forum on chemical treaties, poses several health hazards for women in this sector as they are left exposed to residual toxics elements mostly in their own households and often the presence of children.
- Constant contact with organic pollutants: According to a recent WHO report, a staggering 18 million children, some as young as five, often work alongside their families at e-waste dumpsites every year in low- and middle-income countries. Heavy metals such as lead, as well as persistent organic pollutants (POPs), like dioxins, and flame retardants (PBDEs) released into the environment, have also added to air, soil, and water pollution.
- India’s E-waste (Management) Rules, 2016: Released by the Ministry of Environment, Forest and Climate Change (MoEFCC) flagged e-waste classification, extended producer responsibility (EPR), collection targets, and restrictions on imports of e-wastes containing hazardous substances.
- Amendment to Rules: The amended Electronic Waste Management Draft Rules 2022, expected to come into effect by early next year has also emphasised on improving end-of-life waste throughout the circular economy.
- Lack of clear guidelines: These progressive measures, however, lack clear guidelines on the role of informal recyclers and have particularly blind sighted the role of women creating a lacuna in equitable growth.
- The Beijing Platform of Action: It is worth mentioning that The Beijing Platform of Action clearly maintains that a properly designed e-waste processing system can meet both economic and environmental goals to improve the status of women in the informal economy. Sculpting this blueprint in a variegated social and cultural milieu can perhaps play out to examine best practices and success stories around the world.
How to make E-waste sector more gender inclusive
- Ownership of supply chain: The social stigma attached to this sector progressively manifests in discrimination and loss of dignity. Women lack ownership at the end of the value chain as business owners of material processing units nor have access to capital for starting business ventures.
- Separate policy for ground workers: Educating the un-educated takes more than simply designing training modules, skill development and generating awareness about e-waste should be tailored to run at ground-zero where workers operate without disrupting their daily work schedules.
- Gendered data collection: All of these factors compounded by the severe lack of gender-disaggregated data necessitate earmarked gender budgeting to shape an inclusive e-waste management system.
Conclusion
- The concept of the 3R’s, Reduce, Reuse, recycle as envisaged under Mission LiFE will have to invest in women as drivers of a responsible waste management economy, recognising their critical role to minimise the quantum of waste with the ultimate objective of zero waste.
Mains Question
Q. Analyze the gender inequality in the E-waste sector? What are the ways to make e-waste sector more gender Inclusive?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Indian economic growth prospect and challenges
Context
- The new year begins on a slightly more optimistic note for India. Global crude and food prices are down, the rupee has stabilised at 82-83 to the dollar after dropping from 74.5 levels at the start of 2022, even as official foreign exchange reserves have recovered. However, there are challenges to the economic growth of India which needs an immediate attention and action.
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The current scenario and the optimism around Indian economy
- Global crude and food prices: Global crude and food prices are roughly 38 per cent and 15 per cent down respectively from their highs in March, following Russia’s invasion of Ukraine.
- Stabilised rupee: The rupee has stabilised at 82-83 to the dollar after dropping from 74.5 levels at the start of 2022
- FOREX recovered: even as official foreign exchange reserves, which had plunged to $524.5 billion on October 21 from a year-ago peak of $642 billion, have since recovered to $562.8 billion.
- Environmental conditions are good for Rabi crops: With the prospects for the upcoming rabi crop looking good, as there is favourable soil moisture conditions, timely onset of winter and improved fertiliser availability on the back of declining international prices one can expect consumer inflation to ease further.
What is inflation?
- Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).
- Challenge is more on growth than on Inflation: The challenge for India this year is likely to be more on the growth than on the inflation front.
- It seems, Chinese’s authoritarian policies making India a favourable investment destination: On paper, the world’s disillusionment with China (more specifically, the authoritarian policies of Xi Jinping, both at home and beyond) and its diminishing economic prospects, worsened by a looming demographic crisis, should be making India every investor’s favourite destination.
- On paper government efforts are honest to attract investment: The present government’s focus on improving the country’s physical as well as digital infrastructure plus schemes such as production-linked incentive to attract investments in specific sectors, from solar photovoltaic modules and drones to specialty steels ought to have given added impetus to this process.
- But on the ground, neither domestic nor foreign companies are really investing: The biggest drag on investment during the last decade was over-leveraged corporates and bad loans-saddled banks.
- Deepening global slowdown is a major challenge to the economic growth: That twin balance sheet problem has more or less resolved itself. Today’s problem has mainly to do with strained government and household balance sheets. That, coupled with a deepening global slowdown constricting export demand, could have a bearing on India’s economic growth.
What is Current Account Deficit (CAD)?
- A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
- This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
- A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.
What should the government do?
- Refrain from fiscal stimulus and maintain macroeconomic stability: It should certainly refrain from any fiscal stimulus to kick-start investment or drive growth. Far from stimulus, what the country needs is macroeconomic stability and policy certainty.
- Managing current account deficit: The current fiscal deficit and public debt levels are far too high to allow any new populist schemes in the name of putting money in people’s hands or sharp tax cuts to supposedly revive investor sentiment. Large government deficits will invariably spill over into current account deficits. The latter number, at 4.4 per cent of GDP in July-September, was the highest for any quarter since October-December 2012 and the prelude to the last so-called taper tantrum-induced balance of payments crisis.
- Must prioritize fiscal consolidation: The coming budget must prioritize fiscal consolidation. This will enable the RBI to also pause interest rate hikes and further monetary tightening, which is probably not the best thing for an economy already facing multiple growth headwinds.
Conclusion
- India’s challenge has shifted from inflation management to facilitating growth in 2023. Policy stability and credibility should be the mantra that will ultimately work for India.
Mains question
Q. It is said that the new year 2023 is starting on a slightly more optimistic note for the Indian economy. In this background, discuss the challenges facing India’s economy and what the government should do?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cryptocurrency
Mains level: Issues with Cryptocurrency
The Investor Education and Protection Fund (IEPF) will launch an outreach programme soon to create awareness of cryptocurrencies.
What is Cryptocurrency?
- A cryptocurrency is a digital asset stored on computerised databases.
- These digital coins are recorded in digital ledgers using strong cryptography to keep them secure.
- The ledgers are distributed globally, and each transaction made using cryptocurrencies are codified as blocks.
- And multiple blocks linking each other forms a blockchain on the distributed ledger.
- There are estimated to be more than 47 million cryptocurrency users around the world.
- These cryptocurrencies are created through a process called mining.
Investor Education and Protection Fund (IEPF)
- The Investor Education and Protection Fund (IEPF) is managed by the IEPF Authority, which was set up in 2016 under the provisions of Section 125 of the Companies Act, 2013.
- The Authority is entrusted with promoting awareness among investors, makes refunds of shares, unclaimed dividends, matured deposits and debentures and so on to rightful claimants.
- As for investment education, the idea is to reach out to household investors, housewives and professionals alike in rural and urban areas and teach them the basics.
- Focus areas include primary and secondary capital markets, various saving instruments, the instruments for investment, making investors aware of dubious Ponzi and chit fund schemes and existing grievance redressal mechanisms, among other things.
- Until the end of October, it had conducted more than 65,000 awareness programmes covering 30 lakh citizens.
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Why is there a concern about cryptocurrency?
- RBI caution: The Reserve Bank of India (RBI) has recommended framing legislation on the sector. It is of the view that cryptocurrencies should be prohibited.
- Fiscal stability at stake: The crypto dilemma stems from concerns about the unregulated currency having a destabilising effect on the monetary and fiscal stability of a country.
- Involved in unlawful activities: Further, crypto exchanges in India are being investigated for their alleged involvement in unlawful practices such as drug trafficking, money laundering, violating foreign exchange legislation and evasion of GST.
- High volatility: Cryptocurrency investing can be a complex and risky endeavour as the category is extremely volatile and works round the clock.
Will an outreach programme help?
- Regulation is must: Apart from the outreach programme, there has to be a regulatory mechanism for the crypto sector.
- Messaging has to be right: If the government takes a heavy-handed approach and starts saying things like virtual currency is not legal in India that will not be entirely true.
Present regulation in India
- RBI has banned banks and other regulated entities from supporting crypto transactions.
- The Government has confirmed that expenditure incurred in mining cryptocurrency is considered capital expenditure and not a cost of acquisition.
- Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced by the Centre.
Way forward
- Crypto assets are borderless and therefore, any legislation (for regulation or for banning) would require international collaboration to prevent regulatory arbitrage.
- The collaboration must entail an evaluation of risks and benefits and the evolution of common taxonomy and standards.
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