Day: April 14, 2023

Bills/Act/LawsDOMREthicsExplainedHistorical SitesIOCRop-ed snapPIBPlaces in newsPrelims OnlySC JudgementsSchemesSpeciesStatesworld map
April 2023
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930

Modern Indian History-Events and Personalities

India’s Philosophy Stand Out As A Beacon To The World

op-ed snap | Indian Society | Mains Paper 1: Salient features of Indian Society
Note4Students

From UPSC perspective, the following things are important :

Prelims level: India's philosophy and fundamentals

Mains level: India's philosophical heritage

Philosophy

Central Idea

  • The philosophical underpinnings of India’s civilization are unique and powerful, and they empower India to withstand waves of invasions, natural calamities, and societal challenges. India’s worldview and approach towards human life make India stand out as a beacon to the world. However, many Indians remain ignorant of their own philosophical heritage, and building on these foundational values can serve as building blocks for India’s soft power.

The Fundamentals of Indian Philosophy

  • Indian philosophy cannot be ascribed to any particular scripture.
  • The fundamentals of the perceived philosophy of India have come from many scriptures, and the Indian approach is to let a thousand flowers bloom.

The Five Tenets that Make India Stand Out

India’s philosophy has at least five fundamental tenets that make it stand out: 1. Spiritual democracy, 2. Unity in diversity, 3. Confluence with nature, 4, antyodaya, and 5. vasudhaiva kutumbakam. These tenets reflect the teachings of sages and philosophers such as Gautama Buddha, Adi Shankara, and Guru Nanak.

  1. Spiritual Democracy: India rejects any monopolistic approach to ways of worship, and it welcomes diversity in ways of worship. This approach reflects the fundamental unity of all that exists, and sages call it by various names.
  2. Unity in Diversity: India’s unity is inherent in its diversity, and this diversity is our innate unity that manifests in myriad ways. India not only accommodates but also celebrates the pervasive diversity.
  3. Confluence with Nature: India does not aspire to conquer nature, but instead, it has a tradition of sincere and deepest gratitude towards nature. Many Indian traditions and rituals reflect this approach, and sustainability is a part of our philosophy of human life.
  4. Antyodaya: India’s unique concept of antyodaya puts the last man first. The most deprived are the most deserving when it comes to the distribution of the fruits of development. Antyodaya encompasses both social and economic justice and takes us beyond the binary of capitalism and socialism.
  5. Vasudhaiva Kutumbakam: India has imagined the entire world as one family, where values like mutuality, sharing, and collectivism are given primacy. This approach nips in the bud all the uncalled-for apprehensions about ultra-nationalistic or jingoistic approaches.

India’s Philosophical Heritage Can Build on Its Soft Power

  • India can build on its unique philosophical heritage, which can serve as building blocks of India’s soft power.
  • India’s foundational values are needed now more than ever, as the global community faces conflicts and wars emanating from weird ideas of supremacy, oneupmanship, and monopolistic spirituality.

Conclusion

  • India’s philosophy and approach towards human life and worldly concerns are unique and powerful, and they make India stand out as a beacon to the world. India’s soft power can build on its unique philosophical heritage, and India can use this to assert itself even in the most complex and unpredictable future. The key challenge is to establish that India is capable of walking the talk and using its philosophy to deal with societal challenges. Indian philosophy empowers us to handle the contemporary challenges, and it has gained India huge goodwill among the global community.

Mains Question

Q. India’s philosophy and approach towards human life and worldly concerns are unique and powerful, and they make India stand out as a beacon to the world. Discuss

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Police Reforms – SC directives, NPC, other committees reports

Supreme Court rulings on Encounters

| Governance | Mains Paper 2: Civil Service
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Issues with Extrajudicial Killings

encounter

Central idea: A gangster-turned-politician son and his aide were killed in an encounter in UP.

Why discuss this?

  • The National Human Rights Commission (NHRC) and the Supreme Court have laid down proper guidelines and procedures to be followed to prevent any misuse of power by the law enforcement agencies.
  • However, this encounter has brought to the forefront the issue of extra-judicial killings or “encounters” by the police in India.

Supreme Court Guidelines on Encounters

  • In September 2014, a bench of then CJI RM Lodha and Rohinton Fali Nariman issued detailed guidelines.
  • These guidelines came in the case “People’s Union for Civil Liberties v State of Maharashtra”.
  • The guidelines enumerated 16 points to be followed in the matters of investigating police encounters in the cases of death as the standard procedure for a thorough, effective and independent investigation-
  1. Registration of a first information report (FIR) as mandatory
  2. Magisterial inquiry
  3. Keeping written records of intelligence inputs
  4. Independent investigation by bodies such as the CID
  5. A Magisterial Inquiry must invariably be held in all cases of death which occur in the course of police action
  6. Next of kin of the deceased must invariably be associated in such inquiry
  7. In every case when a complaint is made against the police alleging commission of a criminal act on their part, which makes out a cognizable case of culpable homicide, an FIR to this effect must be registered under appropriate sections of the IPC
  8. Such an inquiry made under Section 176 of the Code of Criminal Procedure, 1973, must show “whether use of force was justified and action taken was lawful.”
  9. Whenever the police receives any intelligence or tip-off on criminal movements or activities relating to the commission of grave criminal offence, “it shall be reduced into writing in some form (preferably into case diary) or in some electronic form.”
  10. Following such tip-off or intelligence, if an encounter takes place and a firearm is used by the police party, resulting in death, then an FIR to that effect has to be registered and forwarded to the court under Section 157 without delay.
  11. Provisions for an independent investigation into the encounter
  12. The requirements/norms must be strictly observed in all cases of death and grievous injury in police encounters by treating them as law declared under Article 141 of Indian Constitution.
  13. The law declared by the Supreme Court shall be binding on all other courts in Indian Territory.
  14. NHRC’s involvement is not necessary, “unless there is serious doubt about independent and impartial investigation.”
  15. The information about the incident must be sent to NHRC or the State Human Rights Commission.

NHRC Guidelines on Encounters

  • The National Human Rights Commission (NHRC) has asked all states and Union Territories to ensure that police follow a set of guidelines in cases where death is caused in police encounters.
  • These included the police’s duty to enter all information received about encounter deaths in an “appropriate register” and provisions for investigation by independent agencies like the State CID.

Issues with such encounters

  • Defies rule of law: This practice undermines the rule of law and due process, and violates the right to life and other human rights.
  • Use of force: There have been allegations of police and security forces using excessive force.
  • Fake encounters: There have been instances of staging encounters, and conducting fake encounters to eliminate suspects without following the due legal process.
  • Autocracy: These incidents have raised concerns about impunity, lack of accountability, and the need for reforms to ensure that law enforcement officials are held accountable for their actions.
  • Distrust among the public: Public often tend to lose belief among the constitutional process of justice.

Why are such encounters popular among public?

  • Lack of trust in the legal system: Some people may view extrajudicial killings and encounters as a way of bypassing the legal system which they may view as corrupt or inefficient.
  • Perception of safety: There may be a belief among some members of the public that such encounters can help to deter criminals and make their communities safer.
  • Frustration with the slow pace of justice: The Indian legal system can be slow and protracted, and some people may view extrajudicial killings and encounters as a way to expedite the process of justice.
  • Lack of awareness about human rights: Some people may not be aware of the human rights implications of such encounters, or may view them as a necessary means to an end.

Conclusion

  • It is important to note, however, that extrajudicial killings and encounters are illegal, undermine the rule of law, and violate human rights.
  • They also carry the risk of abuse, and can result in innocent people being targeted or killed.
  • Therefore, such practices cannot be justified or condoned in a democratic and law-abiding society.

Back2Basics: National Human Rights Commission

  • NHRC is an independent statutory body established in India on 12 October 1993 under the Protection of Human Rights Act, 1993.
  • It is responsible for the protection and promotion of human rights, and prevention of their violations.
  • It is empowered to investigate complaints of human rights violations and recommend appropriate remedial measures.
  • It also monitors the human rights situation in the country, undertakes research and advocacy, and conducts various educational and awareness programs to promote human rights awareness and sensitivity among various sections of society.

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Modern Indian History-Events and Personalities

Dr. B.R. Ambedkar’s Vision Continues to Inspire Present Day Governance

op-ed snap | | Mains Paper 1: Post-Independence
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Check the knowledge box

Mains level: Dr. B.R. Ambedkar's legacy and present day governance

B.R. Ambedkar

Central idea

  • The 132nd birth anniversary of B.R. Ambedkar is an occasion to recognize his ideas and actions which continue to inspire and guide the present and future generations.

B.R. Ambedkar’s Legacy

  • R. Ambedkar was more than an individual, and his ideas and actions continue to illuminate the present and are a guiding light for the future.
  • He epitomised the spirit of justice and stressed establishing institutions for a just society.

Ambedkar’s contribution to nation-building

  • Multidimensional contribution: The centenary of Ambedkar’s work, The Problem of Rupee: Its Origin and its Solution, paved the foundation of the Reserve Bank of India in 1934. During that time, the country was trying to come out of the clutches of colonialism, and Ambedkar vigorously advocated for significant nation-building measures in a multidimensional manner.
  • Tirelessly work to safeguarding the interests of the people: From his work on the Simon Commission to representing the Depressed Classes in the Round Table conferences and chairing the Constitution’s drafting committee, Ambedkar tirelessly worked towards safeguarding the interests of the people.

Quick knowledge box from civilsdaily: Dr. B.R. Ambedkar’s literary work

Literary Works

Description
Castes in India: Their Mechanism, Genesis and Development A paper presented by Ambedkar to an anthropology seminar at Columbia University, which discusses the caste system in India and its origins
The Problem of the Rupee: Its Origin and Its Solution A work that proposed a solution to the problem of currency fluctuations in India and paved the way for the establishment of the Reserve Bank of India
Annihilation of Caste A speech delivered by Ambedkar that strongly criticized the caste system in Hindu society and advocated for its annihilation
What Congress and Gandhi Have Done to the Untouchables A book that criticized the Indian National Congress and Mahatma Gandhi for their treatment of the untouchables in India
States and Minorities A book that analyzes the relationship between the majority and minority communities in India and argues for the protection of minority rights
The Untouchables: Who Were They and Why They Became Untouchables? A book that traces the history of the untouchables in India and argues for their social and economic upliftment
Buddha and His Dhamma A book that describes the life and teachings of the Buddha and how they can be applied to contemporary society
Who Were the Shudras? A book that examines the origins and history of the Shudra caste in Hindu society

Present government’s commitment to Ambedkar’s vision

  • Ambedkar’s vision in planning and implementation: The present-day government led by PM Modi has been committed to adhering to Ambedkar’s vision from planning to implementation.
  • People-centric policy measures: The government has taken steps towards the ease of life of citizens, such as the implementation of pro-poor and people-centric policy measures.
  • For instance: Schemes such as Stand-Up India, Start-Up India, PM Awas Scheme, BHIM, Mudra, and JAM trinity, which show that the government is leaving no stone unturned to fulfill the assigned targets and ensure saturation-level implementation.
  • Government’s efforts to preserve Ambedkar’s legacy: Government’s has adopted a sensitive approach towards preserving Ambedkar’s legacy. The National Research for Conservation of Cultural Property has preserved Ambedkar’s belongings for posterity, which will be showcased at the upcoming Dr B R Ambedkar Socio-Economic & Culture Centre. The Centre will serve as a sacred place highlighting glimpses of Ambedkar’s contribution to building the nation.

Ambedkar’s relevance to present-day India

  • Panch Pran mantra: There are parallels between Ambedkar’s ideas and the Prime Minister’s Panch Pran mantra for making a developed India.
  • Azadi Ka Amrit Mahotsav: Ambedkar believed that the constitutional ideals and social philosophy of liberty, equality, and fraternity have Indian cultural roots, and the government’s initiatives, such as Azadi Ka Amrit Mahotsav, reflect this belief.

Conclusion

  • India’s commitment to Ambedkar’s vision would have resulted in greater public welfare if earlier governments had accepted him in this manner. On Ambedkar’s 132nd birth anniversary, it is essential to recognize his legacy and commitment to establishing institutions for a just society. The legacy of B.R. Ambedkar is a guiding light for India, and his ideas and actions continue to inspire and provide a moral force for justice.

Mains Question

Q. Discuss the relevance of B.R. Ambedkar’s ideas to present-day India. How has the present government committed to adhering to Ambedkar’s vision in planning and implementation of policies?

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Capital Markets: Challenges and Developments

Dabba Trading and its impact on the Economy

Prelims Only | Economics | Mains Paper 3: Investment Models
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Dabba Trading

Mains level: Read the attached story

dabba

Central idea

  • The National Stock Exchange (NSE) has issued a series of notices warning retail investors about entities involved in ‘dabba trading’.
  • The NSE cautioned investors not to subscribe or invest using these products offering indicative, assured or guaranteed returns in the stock market as they are prohibited by law.
  • The entities involved in dabba trading are not recognized as authorized members by the exchange.

What is Dabba Trading?

  • Dabba (Box) trading refers to informal trading that takes place outside the purview of the stock exchanges.
  • It involves betting on stock price movements without incurring a real transaction to take physical ownership of a particular stock as is done in an exchange.
  • In simple words, it is gambling centred around stock price movements.

How does it work?

  • In dabba trading, investors place bets on stock price movements at a certain price point.
  • If the price point rises, they make a gain, and if it falls, they have to pay the difference to the dabba broker.
  • The broker’s profit from the investor’s loss, and vice versa.
  • Transactions are facilitated using cash and unrecognised software terminals or informal records, which helps traders stay outside the regulatory mechanism.

What are the problems with dabba trading?

  • Since dabba traders do not maintain proper records of income or gain, they are able to escape taxation, which results in a loss to the government exchequer.
  • The use of cash also means that they are outside the purview of the formal banking system.
  • Investors in dabba trading do not have formal provisions for investor protection or grievance redressal mechanisms available within an exchange, which exposes them to the risk of broker defaults or insolvency.
  • Dabba trading also perpetuates a parallel economy, potentially encouraging the growth of black money and criminal activities.

What is the current scenario?

  • Industry observers have reported that dabba brokers harass clients for default payments and refuse payments upon profit.
  • Potential investors are lured by aggressive marketing, ease of trading using apps with quality interfaces, and lack of identity verification.
  • Brokers keep their fees and margins open to negotiation depending on an individual’s trading profile.
  • The mechanism could potentially induce volatility and cause losses for the regulated bourse when dabba brokers look to hedge their exposures.

What are the legal implications?

  • Dabba trading is recognised as an offence under Section 23(1) of the Securities Contracts (Regulation) Act (SCRA), 1956.
  • Upon conviction, it can invite imprisonment for a term extending up to 10 years or a fine up to ₹25 crore, or both.

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Microfinance Story of India

What is MUDRA Scheme?

Prelims Only | Economics | Mains Paper 3: issues relating to planning, mobilization of resources
Note4Students

From UPSC perspective, the following things are important :

Prelims level: MUDRA Scheme

Mains level: Read the attached story

mudra

PM hit out at people ridiculing the Pradhan Mantri Mudra Yojana (PMMY) and said those who gave loans to big businessmen “over phone” never understood the power of microfinance.

MUDRA Scheme

  • MUDRA (Micro Units Development and Refinance Agency) Scheme is a financial initiative launched by the Government of India in April 2015 to provide financial support to micro-enterprises in India.
  • The scheme is designed to cater to the financial needs of the non-corporate, non-farm sector enterprises in the country.
  • The objective of the scheme is to promote entrepreneurship, employment generation, and to provide access to finance to small and micro-businesses in India.

Range of loans

  • The MUDRA scheme provides loans ranging from Rs. 50,000 to Rs. 10 lakhs to small and micro-businesses.
  • These loans are provided through various financial institutions such as banks, microfinance institutions, and non-banking financial companies (NBFCs).
  • The scheme also offers refinance support to these institutions.
Category Loan Amount
Shishu Up to Rs. 50,000
Kishore Rs. 50,001 to Rs. 5 lakhs
Tarun Rs. 5 lakhs to Rs. 10 lakhs

Key features of the MUDRA scheme

  • Refinance support: The scheme offers refinance support to various financial institutions, such as banks, microfinance institutions, and non-banking financial companies (NBFCs), to provide loans to small and micro-businesses.
  • Employment generation: The scheme aims to promote entrepreneurship and employment generation in the country.
  • Digitalization of financial transactions: The scheme has helped in promoting the digitalization of financial transactions.
  • Focus on underprivileged and marginalized sections: The scheme aims to provide financial assistance to underprivileged and marginalized sections of the society, especially those belonging to the non-corporate, non-farm sector enterprises in the country.
  • Simplified loan processing: The loan processing under the scheme is simplified and requires minimal documentation.
  • No collateral requirement: The loans provided under the scheme do not require any collateral or security.
  • Competitive Interest rate: The interest rate for the loans provided under the scheme is competitive and affordable.

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Historical and Archaeological Findings in News

Uthirameur Inscription: Ancient Tamil proof of Democratic Provisions

Prelims Only | | Mains Paper 1: Modern Indian History
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Uthiramerur inscriptions

Mains level: Democracy since Indian Civilizations

uthirameur

PM Modi referred to an over 1,100-year-old inscription found in Uthirameur, Tamil Nadu, which talks about rules for a local body, including provisions for disqualifying a member.

What are Uthiramerur inscriptions?

  • Uthiramerur inscriptions are a set of ancient Tamil inscriptions found in Uthiramerur, a town in the Kanchipuram district of Tamil Nadu.
  • These inscriptions date back to the 10th century CE and were created during the reign of the Chola dynasty, which ruled over a large part of South India.
  • It was crafted under the rule of Parantaka Chola I (907 – 956 AD.)

What does the inscription say?

The temple inscriptions of Uthiramerur provide historical descriptions of rural self-governance.

(1) Sabha and Ur

  • Uthiramerur had two village assemblies: Gram Sabha and Ur.
  • Sabha was exclusively a Brahmin assembly, while the Ur was made up of people belonging to all classes.
  • Sabha managed land sales, endowment fund for dredging a tank, and assigned duties to the Ur for managing deserted land.
  • Sabha assembled in the hall of the local temple and was summoned through beating of the drums.
  • The inscriptions contained references to variyars, the executive officers subordinate to the Sabha.

(2) Administrative System

  • The executive powers were given to committees called Variyams during the Chola king Parantaka I’s reign (907–955).
  • Each variyam constituted 6 to 12 members, depending on the importance of its functions.
  • The first inscription (dated 919 CE) described the rules for electing committee members.
  • The second inscription (dated 921 CE) described some amendments to these rules to make them more practical.

(3) Committees and Qualifications

  • The village had 30 kudumbus or wards, from which the members of various committees were selected annually.
  • The inscription lays down the qualifications for a nominee, including ownership of tax-paying land, residence on self-owned land, age between 35 and 70 years, knowledge of mantras and the Brahmanas, and not being associated with certain offenses or activities.
  • The candidates were selected via Kudavoloi (pot of palm leaf tickets) system.
  • The tenure of a committee member was 360 days.
  • Anyone found guilty of an offense was immediately removed from the office.

(4) Punishments

  • The Uthiramerur inscriptions indicate that parading on a donkey was a punishment for offenses such as incest, adultery, theft, and forgery.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-Afghanistan

India signs MoU with World Food Programme for sending wheat to Afghanistan

IOCR | International Relations | Mains Paper 2: India & Its Neighborhood - Relations
Note4Students

From UPSC perspective, the following things are important :

Prelims level: World Food Program

Mains level: India's assistance to Afghanistan

India signed an MoU with the World Food Programme (WFP) to send 10,000 metric tonnes of wheat to Afghanistan.

Reason: Utilizing WFP supply chain

  • The MoU signed between India and the World Food Programme (WFP) paves the way for sending 10,000 metric tonnes of wheat for the people of Afghanistan.
  • The WFP has a massive supply chain and logistics infrastructure in Afghanistan that could help in ensuring that the food supply reaches those who need it the most and no one is excluded.
  • The MoU also ensures that the assistance is coordinated and delivered in an effective and efficient manner, and that it reaches the most vulnerable sections of the Afghan population.

What is World Food Programme (WFP)?

  • The WFP is a humanitarian organization that is part of the United Nations system.
  • It was established in 1961 and has its headquarters in Rome, Italy.
  • The WFP is the world’s largest humanitarian agency focused on combating hunger and promoting food security.

Scope of Operations

  • The WFP operates in more than 80 countries, delivering food assistance to people in need.
  • WFP programs reach over 97 million people each year, including children, pregnant and nursing women, and people affected by emergencies, such as conflict or natural disasters.
  • It provides a range of food assistance, including in-kind food assistance, cash and voucher-based transfers, and specialized nutritious foods.

Funding and Support

  • The WFP is funded entirely by voluntary contributions from governments, companies, and individuals.
  • The organization works closely with donors to ensure that funding is used effectively and efficiently, and to ensure that it is directed to the areas and programs where it is needed most.

Governance and Structure

  • The WFP is governed by an Executive Board, which is composed of 36 member states that are elected to three-year terms.
  • The Executive Board provides oversight and strategic direction to the organization, and approves the WFP’s programs and budgets.
  • The WFP is headed by an Executive Director, who is appointed by the Secretary-General of the United Nations.
  • The organization has more than 17,000 staff worldwide, including professionals in fields such as logistics, nutrition, and food security.

Impact and Achievements

  • Over the years, the WFP has made significant contributions to addressing hunger and promoting food security worldwide.
  • The organization has responded to numerous emergencies, providing food assistance to millions of people affected by conflict, natural disasters, and other crises.
  • The WFP has also supported programs that help people access the food they need to lead healthy, active lives, and that promote sustainable agriculture and development.
  • The WFP has been recognized for its efforts, receiving the Nobel Peace Prize in 2020 in recognition of its contributions to combatting hunger and promoting peace.

 

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

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

Inflation in India is Driven by Food Prices

op-ed snap | Economics | Mains Paper 3: Indian Economy
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Inflation, WPI and CPI

Mains level: Inflation trends in India

Inflation in India

Central Idea

  • The recent trajectory of inflation in India is attributed to the pricing power of five big corporates or ‘Big 5’ according to former Deputy Governor of Reserve Bank of India, Viral Acharya. However, the argument is flawed as the Indian inflation is different from the rest of the world, and it is driven by food price inflation. While corporate pricing power does exist, it is limited, and the extent to which it drives overall inflation is still debatable.

The factor of food price inflation

  1. Divergence between Indian and Western inflation rates is not new:
  • Sudden surge of Inflation in India: After the global financial crisis of 2008, Indian inflation surged higher than the economies of the US and UK due to food price inflation caused by negative agricultural shocks and high procurement price hikes.
  • Core inflation: Food-price inflation tends to feed into core inflation, so it would be hasty to conclude that Indian inflation is higher than the West today due to corporate pricing power.
  • Food price inflation: Evidence suggests that in India, food price inflation affects core inflation, and food price inflation enters costs of the non-agricultural sector.
  1. Corporate pricing power in India:
  • Corporate pricing power and overall inflation: Corporate pricing power exists in Indian industry, but the extent to which it drives overall inflation in India is debatable. The question is how much corporate power is driving inflation beyond its obvious role in elevating the price level.
  • Prices of food: To measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
  • Inflation control strategy: India’s inflation control strategy needs to address the challenge of ensuring the production of food at affordable prices.
  1. Comparing WP inflation with CP inflation
  • Comparing WP inflation with CP inflation is to acquiesce in a mismatch.
  • The commodity basket corresponding to CP includes items that do not enter the wholesale price index, so we would be comparing apples with oranges.

Inflation in India

The argument is based on a short time period

  • WP inflation has eased considerably in the six months preceding March 2023, but CP inflation has not. However, a mismatch between WP and CP inflations is not new.
  • So, the maintenance of high price increases by firms in the retail sector even after wholesale price inflation has declined in 2022-23 may just be a compensating mechanism, i.e., the rising input cost of the retail sector is being passed on with a lag.

Facts for prelims: WP inflation VS CP inflation

Aspect Wholesale Price (WP) Inflation Consumer Price (CP) Inflation
Definition Measures the change in average price level of goods sold by producers at the wholesale level Measures the change in average price level of goods and services purchased by households
Captures Changes in prices of goods before they reach the retail market Changes in prices of goods and services at the retail level
Indicator of Early indicator of changes in overall price level of economy Inflation that households experience in their day-to-day lives
Impact Affects production cost and supply chain Affects purchasing power of consumers
Calculation Based on price changes of goods sold in bulk to retailers or other businesses Based on price changes of goods and services purchased by households
Usage Used by policymakers to monitor changes in cost of production and production-level inflation Used by policymakers to monitor inflation and make decisions related to monetary policy
Examples Wholesale prices of raw materials, oil, and other commodities Retail prices of food, clothing, transportation, and other consumer goods and services

Rising food prices driving current inflation

  • Over 75% of the direct contribution to inflation in the first three quarters of the financial year came from sectors in which the Big 5 are unlikely to be represented in a big way.
  • The contribution of food products alone was close to 50% in most time periods.
  • Rising food prices are driving current inflation in India.

The current inflation control strategy

  • Considerable rise in food prices: In India, food prices have only risen, and in recent years their rate of inflation has been very high. For all the reforms since 1991, the real price of food, i.e., its price relative to the general price level, has risen considerably.
  • What matters most to public must be considered: In the context, to measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
  • Current strategy restricted to using the interest rate to dampen aggregate demand: India’s inflation control strategy is currently restricted to using the interest rate to dampen aggregate demand. This strategy avoids addressing the challenge of ensuring the production of affordable food.
  • Question mark on RBI’s ability to control inflation: The RBI has been unable to control even the core inflation which central banks are assumed to be able to control. A recent intervention explaining core inflation in India has highlighted the RBI’s inability to control inflation.

Conclusion

  • Inflation is being discussed only in terms of core inflation, which excludes the inflation in food and fuel prices because these prices tend to fluctuate and even out the changes, so it is assumed that they do not require a policy response. However, this assumption is flawed in the context of India’s economy, as food and fuel prices have a significant impact on the economy and people’s livelihoods. Therefore, limiting the discussion to core inflation ignores the role of corporate pricing power and the impact of food and fuel prices on the economy.

Mains Question

Q. What is the factor that primarily drives inflation in India? Highlight the relationship between food price inflation and overall inflation in India?

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Artificial Intelligence (AI) Breakthrough

AI Regulation in India: Ensuring Responsible Development and Deployment

op-ed snap | Governance | Mains Paper 3: Awareness in various sc and tech fields,S&T - Applications In Everyday Life
Note4Students

From UPSC perspective, the following things are important :

Prelims level: AI applications and latest developments

Mains level: AI's limitless potential, challenges, risks and regulations

AI

Central Idea

  • As the deployment of Artificial intelligence (AI) based systems continues to grow, it is important for India to develop and implement regulations that promote responsible development and deployment, while also addressing concerns related to privacy, competition, and job losses.

The Potential of AI and its Risks

  • Limitless potential: The potential of AI is vast and encompasses a wide range of applications across various fields. AI has the potential to improve productivity, increase efficiency, and provide personalized solutions in many areas such as healthcare, finance, education, manufacturing, transportation, defense, space technology, molecular biology, deep water mining, and exploration.
  • Significant risks: While the potential of AI is immense, it also comes with significant risks that need to be addressed. Some of the risks associated with AI include biased algorithms, misdiagnosis or errors, loss of jobs for professionals, unintended harm or civilian casualties, and cybersecurity threats. It is important to ensure that AI development and deployment are carried out with caution and that potential risks are mitigated.

AI

Takeaway keyword Box from civilsdaily: AI applications in various fields, advantages, challenges and associated risks.

Fields AI Applications Advantages Challenges Risks
Healthcare Diagnosis and medical imaging, drug discovery, personalized medicine, virtual nursing assistants, remote monitoring of patients, health data analysis Improved accuracy and speed of diagnoses, personalized treatment plans, faster drug discovery, remote patient monitoring Integration with existing healthcare systems, ethical and regulatory concerns, data privacy and security Misdiagnosis or errors, biased algorithms, loss of jobs for healthcare professionals
Finance Fraud detection, customer service chatbots, personalized financial advice, risk assessment and management, trading algorithms Improved fraud detection and prevention, personalized customer support, optimized risk management, faster trading decisions Integration with existing financial systems, ethical and regulatory concerns, data privacy and security Biased algorithms, systemic risks, cyber attacks
Education Personalized learning, adaptive learning, intelligent tutoring systems, student engagement analytics, automated grading and feedback Improved student outcomes, personalized learning experiences, increased student engagement, reduced workload for educators Integration with existing education systems, ethical and regulatory concerns, data privacy and security Biased algorithms, loss of jobs for educators, lack of human interaction
Manufacturing Quality control, predictive maintenance, supply chain optimization, collaborative robots, autonomous vehicles, visual inspection Increased efficiency and productivity, reduced downtime, optimized supply chains, improved worker safety Integration with existing manufacturing systems, ethical and regulatory concerns, data privacy and security Malfunctioning robots or machines, loss of jobs for workers, high implementation costs
Transportation Autonomous vehicles, predictive maintenance, route optimization, intelligent traffic management, demand forecasting, ride-sharing and on-demand services Reduced accidents and fatalities, reduced congestion and emissions, optimized routing and scheduling, increased accessibility and convenience Integration with existing transportation systems, ethical and regulatory concerns, data privacy and security Malfunctioning autonomous vehicles, job displacement for drivers, cybersecurity threats
Agriculture Precision agriculture, crop monitoring and analysis, yield optimization, automated irrigation and fertilization, pest management, livestock monitoring Increased crop yields, reduced waste and resource use, optimized crop health, improved livestock management Integration with existing agriculture systems, ethical and regulatory concerns, data privacy and security Malfunctioning drones or sensors, loss of jobs for farm workers, biased algorithms
Defense Intelligent surveillance and threat detection, unmanned systems, autonomous weapons Improved situational awareness and response, reduced human risk in combat situations Ethical and legal concerns surrounding the use of autonomous weapons, risk of AI being hacked or malfunctioning in combat scenarios Unintended harm or civilian casualties, loss of jobs for military personnel
Space technology Autonomous navigation, intelligent data analysis, robotics Increased efficiency and productivity in space exploration, improved accuracy in data analysis Risk of AI being hacked or malfunctioning in space missions, ethical and regulatory concerns surrounding the use of autonomous systems in space Damage to equipment or loss of mission due to malfunctioning AI
Molecular biology Gene editing and analysis, drug discovery and development, personalized medicine Faster and more accurate analysis of genetic data, improved drug discovery and personalized treatment plans Ethical and regulatory concerns surrounding the use of AI in gene editing and personalized medicine Misuse of genetic data or personalized treatment plans, loss of jobs for medical professionals
Deep water mining and exploration Autonomous underwater vehicles, intelligent data analysis Increased efficiency and productivity in deep sea exploration and mining, improved accuracy in data analysis High costs and technical challenges of developing and deploying AI systems in deep sea environments Malfunctioning AI systems, environmental damage or destruction due to deep sea mining activities

The Need for Regulation

  • Current regulatory system not well equipped: The current regulatory system may not be equipped to deal with the risks posed by AI, especially in areas such as privacy and competition.
  • Develop regulations in collaboration: Governments need to work with tech companies to develop regulations that ensure the responsible development and deployment of AI systems.
  • Balanced regulations: The regulation needs to be adaptive, flexible and balance between the benefits and risks of AI technology. This way, AI technology can be developed while taking into account societal concerns.
  • Privacy Concerns and responsible usage: AI-based systems, such as facial recognition technology, raise concerns related to privacy and surveillance. Governments need to develop regulations that protect citizen privacy and ensure that data is collected and used in a responsible way.
  • Risk assessment: Risk assessment could help in determining the risks of AI-based systems and developing regulations that address those risks.
  • For instance: Europe’s risk assessment approach may serve as a useful model for India to develop such regulations.

Competition and Monopolization

  • AI powered checks and balance: The dominance of Big Tech in the tech landscape raises concerns of monopolization and the potential for deepening their control over the market. However, the presence of multiple players in the AI field generates checks and balances of its own.
  • Healthy market for AI technology: The development of new players and competitors can promote innovation and ensure a healthy market for AI technology.

AI

Conclusion

  • AI technology holds immense potential, but its risks need to be mitigated, and its development and deployment need to be carried out responsibly. Governments must work towards developing regulations that ensure that AI technology benefits society, while addressing concerns related to privacy, competition, and job losses. Responsible development and deployment of AI technology can lead to a brighter future for all.

Mains Question

Q. AI has limitless potential in various fields. In this light of this statement enumerate some of its key revolutionary applications in various fields and discuss challenges and associated risks of deploying AI in various fields.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥Mentorship New Batch Launch
Click Here
💥Mentorship New Batch Launch
Click