From UPSC perspective, the following things are important :
Prelims level: Worldcoin
Mains level: Not Much
PC: The Hindu
Central Idea
OpenAI CEO Sam Altman recently reintroduced Worldcoin, a project that was previously overshadowed by the popularity of ChatGPT.
What isWorldCoin?
The Worldcoin venture involves a unique model where individuals have their eyes scanned to establish their human uniqueness.
In return for the eye scan, participants receive cryptocurrency and a World ID, forming the basis of the project.
Worldcoin’s aim is to create the “world’s largest identity and financial public network,” accessible to people globally.
How does it works?
Orb Operators: Worldcoin relies on volunteers called “Orb operators” who use a device called “Orb” to scan people’s iris patterns and collect their biometric data.
World ID: Participants receive a World ID through the World app after getting their irises scanned. This unique ID allows them to claim Worldcoin cryptocurrency and conduct transactions.
Proof of Personhood: Scanning irises ensures that people cannot sign up multiple times to receive more crypto rewards.
Cryptocurrency and Transactions: Users can collect WLD at regular intervals or use it for transactions, similar to a standard digital currency.
WLD Cryptocurrency and Compliance
WLD Token: WLD is a cryptocurrency based on the Ethereum blockchain and can be bought, sold, or traded on major exchanges.
Regulatory Compliance: Worldcoin ensures compliance with Europe’s GDPR and uses zero-knowledge proofs (ZKPs) to maintain user privacy. User data is encrypted and not sold, though it may be shared with necessary third parties.
Various risks
Price Volatility: As with most cryptocurrencies, the price of WLD is subject to fluctuations. Its value can rise or fall, and users should be cautious about investing in lesser-known digital currencies.
Security Risks: Users must be wary of potential scams or hacks related to cryptocurrency investments.
Criticism and Controversies
Privacy Concerns: Worldcoin faced criticism over privacy concerns about the use of biometrics for verification.
Scanning in Emerging Economies: Reports indicated that Worldcoin scanned underprivileged people’s irises in emerging economies during the COVID-19 pandemic, raising ethical questions about informed consent and rewards for scans.
Worldcoin in India
Orb Operators in India: Worldcoin has deployed Orb operators in various locations, particularly in Delhi, Noida, and Bangalore, where people’s irises are scanned to join the network.
Conclusion
Worldcoin’s vision of a global digital network with biometric identity and cryptocurrency rewards is both promising and controversial.
While it aims to foster financial inclusion and provide digital opportunities, it must address privacy and ethical concerns to gain wider acceptance and trust among users worldwide.
From UPSC perspective, the following things are important :
Prelims level: Cell Free DNA vs. Normal DNA
Mains level: Not Much
Central Idea
Researchers worldwide are increasingly using Cell-free DNA (cfDNA) as a valuable tool to better comprehend human diseases, improve diagnosis, monitoring, and prognosis.
What is Cell-free DNA?
CfDNA refers to small fragments of nucleic acids that are released from cells and found outside the cell in body fluids.
Its discovery dates back to the late 1940s when it was first observed in the blood of pregnant women.
cfDNA can be generated and released from cells in various situations, such as cell death and other physiological processes.
The release of cfDNA is associated with several disease processes, including autoimmune diseases like systemic lupus erythematosus.
How is it different from normal DNA?
Cell-free DNA
Normal DNA
Found in the bloodstream and other bodily fluids
Found within the cell nucleus or mitochondria
Released from dying or dead cells into the circulation
Remains within the cell’s nucleus or mitochondria
Exists in a fragmented form
Exists as an intact double-stranded helix
Can be isolated and analyzed from blood samples
Requires cell extraction and purification for analysis
Provides valuable genetic information for personalized medicine
Forms the basis of genetic inheritance and traits
Valuable in infectious disease diagnosis and monitoring
Not used for infectious disease diagnosis
Used in forensics for DNA profiling and crime investigations
Not typically used in forensics
Applications of CfDNA
Non-Invasive Prenatal Testing (NIPT)
Detect genetic abnormalities in foetuses
Screening for Down syndrome, Edwards syndrome, and Patau syndrome
Cancer Screening and Monitoring
Identify genetic mutations in tumour cells
Determine cancer type
Monitor treatment response and disease progression
Transplant Rejection Monitoring
Monitor immune response after organ transplantation
Early detection of organ rejection
Infectious Disease Diagnosis
Identify viruses and bacteria in the bloodstream
Aid in diagnosing infections and guiding treatment
Personalized Medicine
Provide genetic information for tailored treatment plans
Enable precision medicine based on individual genetic profile
Tracking Tumour Mutations
Monitor drug-resistant mutations in cancer patients for treatment adjustments
Recent Advances in Therapeutics
GEMINI Test: Researchers at Johns Hopkins Kimmel Cancer Centre developed a new test called ‘GEMINI’ that uses cfDNA for early cancer detection. By analyzing genetic mutations and using machine learning, they achieved over 90% accuracy in detecting lung cancer, even in early-stage cases.
Potential Impact: Early detection of cancers using cfDNA could significantly improve patient outcomes and survival rates.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Constitutional crisis in Israel
Central Idea
On July 24, the governing coalition in Israel’s Parliament (Knesset) passed a critical part of its judicial overhaul plan, aimed at curbing the Supreme Court’s oversight powers over government decisions.
This has sparked months of protests against the right-religious government’s plans to transform the judiciary.
Judiciary Overhaul: The Crisis Trigger
Abolishing the “Reasonability Doctrine”: The Knesset legislation abolishes the “reasonable doctrine” used by the Supreme Court to assess government decisions and ministerial appointments. This doctrine allowed the court to determine the sensibility and fairness of government decisions and nullify them if deemed necessary.
Reasonability Doctrine in Other Countries: The reasonability standard is a legal standard used in several countries, including Australia, Canada, and the U.K., by top courts to evaluate government decisions.
Criticism and Justification: Supporters of the government argue that the reasonability standard is too abstract and prone to judicial overreach, justifying its removal. They claim that this change will prevent courts from interfering in executive decisions.
Other Proposals in the Overhaul Plan
Curbing Judicial Review: The original overhaul plan included proposals to limit judicial review over legislation and empower Parliament to override court decisions with a majority vote of 61 out of 120.
Greater Control of Judicial Appointments: The government seeks to replace members of the Bar Association in the nine-member panel responsible for selecting judges with “public representatives” chosen by the government. This change would give the government a majority vote in the committee and more control over judicial appointments.
Ministers’ Autonomy from Legal Advisers: Another proposal seeks to remove the legal obligation for Ministers to follow the advice given by their legal advisers, including the Attorney-General’s guidance.
Motivation behind the Overhaul
Right-Wing Government’s Agenda: Israel’s current government, composed of right-wing, ultra-Orthodox, and extreme-right parties, aims to strengthen its control over the judiciary. The right-wing leaders have criticized the judiciary for impeding their legislative agenda and settlement expansion in Palestinian territories.
Shift in Israel’s Polity: Over the years, Israel’s polity has shifted rightward, while the judiciary remained relatively independent. The right-wing has long advocated for bringing the courts under the Parliament’s ambit.
Influence of Think Tank: The Kohelet Policy Forum, a think tank backed by American and Israeli billionaires, has played a significant role in formulating the judicial reforms. Kohelet seeks to advance right-wing policy reforms in Israel and has pushed for the overhaul of the judiciary.
Protests and Concerns
Undermining Democracy: Critics, including the Opposition and civil society, argue that the government’s actions are an attempt to undermine Israel’s democracy. They fear that concentrating power within the government, controlled by right-wing and religious parties, could lead to an authoritarian theocracy.
Tensions between Liberal and Orthodox Jews: Protests have spread to different groups, including military reservists, amid concerns that religious parties may undermine the courts and empower religious sections.
Supreme Court Review: Civil society groups have filed petitions in the Supreme Court challenging the legislation on the reasonability doctrine. The court, facing a constitutional showdown, will review the challenges, even though the law curtails its own powers.
Conclusion
The passage of the judicial overhaul plan in Israel’s Knesset has significant implications for the country’s governance and democratic fabric.
The concentration of power within the government and curtailing the Supreme Court’s oversight powers has raised concerns about checks and balances.
Civil society’s petitions and the Supreme Court’s subsequent decisions will be crucial in determining the future course of Israel’s judiciary and its democratic institutions.
From UPSC perspective, the following things are important :
Prelims level: Bedaquiline, Pretomanid, and Linezolid (BPaL) Treatment
Mains level: Elimination of TB from India
Central Idea
The interim results of a randomized phase-3/4 trial conducted in India to evaluate the safety and effectiveness of BPaL Regimen, an all-oral, short-course treatment are promising.
BPaL is administered for individuals with pre-XDR TB or treatment-intolerant/non-responsive MDR pulmonary TB
What is BPaL?
The trial uses only three drugs—Bedaquiline, Pretomanid, and Linezolid (BPaL).
The treatment duration is only 26 weeks, contrasting with the conventional 18-month treatment involving eight to nine tablets per day.
Trial Outcomes
It offered a significantly reduced number of tablets per day, resulting in better treatment adherence and improved outcomes.
Approximately 70% of the trial participants have completed the 26-week treatment, with a cure rate exceeding 85%.
In comparison, the cure rate for conventional treatment for DR-TB is 60-65% even with strict adherence.
Treatment Superiority
Advanced TB Cases: The trial participants had advanced TB affecting both lungs, yet the cure rate was above 85%, demonstrating the superiority of the BPaL short-course therapy.
Importance of Early Diagnosis: Early diagnosis and initiation of treatment with the three-drug regimen can lead to even better outcomes for patients with pre-XDR TB.
Issues with the treatment
Three to four trial participants experienced serious adverse effects, but these were either managed or occurred too late in the disease’s progression to be helped.
Some cases of mild adverse effects caused by linezolid included a drop in haemoglobin and platelet counts, as well as neuropathy (tingling sensation and numbness in the legs).
TB Menace in India
Total TB Cases: In 2021, there were approximately 21.3 lakh (2.13 million) reported TB cases in India.
Incidence Rate: The incidence rate of TB in India in 2021 was 210 cases per lakh population.
Drug-Resistant TB: The number of drug-resistant TB cases in India declined from around 1.49 lakh in 2015 to 1.19 lakh in 2021.
Government Initiatives: To combat TB, India has set the target of eliminating the disease by 2025, and various initiatives have been implemented, including active case finding, screening, and improved access to diagnostic tests and treatment.
| Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: DLI Scheme
Mains level: Read the attached story
Central Idea
The Indian government is considering a proposal to pick an equity stake in domestic chip design-making companies as part of the second phase of the Design-Linked Incentive (DLI) Scheme for the semiconductor industry.
The aim behind the scheme is to establish a stable ecosystem and promote the growth of “fabless companies” in India—entities that design chips but outsource manufacturing.
However, this policy requires a long-term strategy due to the capital-intensive nature of the semiconductor sector and the lengthy gestation periods for setting up design and fabrication units.
What is DLI Scheme?
DLI scheme is a program aimed at providing financial and infrastructural support to companies establishing semiconductor manufacturing plants in India.
Eligible participants who set up fabrication units in the country can receive fiscal support of up to 50% of the total cost.
Additionally, participants building compound semiconductors, silicon photonics, and sensors fabrication plants can avail fiscal support of 30% of the capital expenditure under this scheme.
Companies engaged in semiconductor design for integrated circuits, chipsets, system-on-chips, systems, and IP cores will receive incentives of 4% to 6% on net sales for a duration of five years.
The scheme is expected to promote the growth of at least 20 such companies, achieving a turnover of more than ₹1500 crore in the next five years.
Present Chip Dynamics
Long Gestation Period: Setting up design and fabrication units in the semiconductor industry involves long gestation periods before the first product is launched. Returns on investment are not immediate.
Capital Intensive: The semiconductor industry requires significant investment for setting up fabrication units, up-scaling manufacturing capabilities, and research.
Cyclic Nature: The industry’s cyclic nature and changing functional requirements of chipsets make research and development challenging.
Supply Chain Disruptions: Supply chain disruptions, such as those experienced during COVID-related lockdowns, can dampen investor confidence in the sector.
Domestic Chip Industry Scenario
Talent Pool: India has a highly-skilled talent pool of semiconductor design engineers, making up around 20% of the world’s workforce, working for global companies like Intel, Micron, and Qualcomm, among others.
IP Ownership: Despite a thriving talent pool, India owns a smaller portion of the intellectual property (IP) related to chip designs, which is mostly retained by global companies.
DLI Scheme for Chip Designing: The DLI scheme introduced in December 2021 aimed to indigenize innovations and support the growth of chip design companies with financial incentives.
Changing Landscape: The scheme has led to the establishment of over 30 semiconductor design startups in India, with some already receiving government support.
Growing market in India
The semiconductor industry is growing fast and can reach $1 trillion dollars in this decade. India can grow fast and reach $64 billion by 2026 from $27 billion today.
Mobiles, wearables, IT, and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021.
The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026.
Challenges and Considerations
Effectiveness and Efficiency: Some experts view the government’s plan to become a venture capital firm for chip design companies as ineffective and inefficient. Companies may prefer foreign buyers for higher valuations and global ecosystem connections.
Venture Capital Support: The lack of venture capitalists in the private sector focused on semiconductors is a challenge for the growth of design firms.
Equity Stake’s Impact: Offering an equity stake can align the interests of design companies with the project’s success, ensuring shared risk and reward. It may also help in selling chip-designing services more effectively and attracting a broader client base in the market.
IP and Value-Added Activities: The government must consider who can keep the IP and how investments can drive more innovation and employment generation. Moving up in the value chain and enabling the ecosystem is crucial.
Conclusion
The proposal to take an equity stake in domestic chip design-making companies in India’s semiconductor industry aims to promote the growth of fabless companies and ensure a stable ecosystem.
However, it requires a long-term strategy and careful consideration of IP ownership, venture capital support, and value-added activities in chip design.
The success of the scheme will depend on effective implementation and alignment of interests between the government and promising design companies.
| Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.
Note4Students
From UPSC perspective, the following things are important :
Prelims level: UDAN Scheme
Mains level: Read the attached story
Central Idea
Union Civil Aviation Ministry inaugurated a new phase of the Ude Desh Ka Aam Nagrik (UDAN) scheme, or UDAN 5.2, to improve last-mile connectivity in remote regions of the country through small aircraft.
There have been aspersions regarding the success of the UDAN regional connectivity scheme (RCS) since ONLY 11 of the 74 Greenfield airports are decently operational.
Progress till now
Route Closures: Out of the 479 routes launched under RCS, 225 have ceased operations, leading to significant route closures.
Commercial Viability: Around 70 of the routes were found to be commercially unviable even with subsidies, leading airlines to discontinue their operations.
Three-Year Sustainability: The objective of RCS was for airlines to become self-sustaining after three years, but only 58 out of 155 routes completed this period successfully.
Incomplete Infrastructure: Some airports, such as Thanjavur, Moradabad, Saharanpur, and Ayodhya, were not ready for operations, leading to the discontinuation of 12 routes.
What is UDAN Scheme?
UDAN Scheme, initiated in 2016, aims to enhance aviation infrastructure and air connectivity in Tier II and Tier III cities.
It was formulated based on the review of The National Civil Aviation Policy (NCAP)-2016, with the goal of fulfilling the aspirations of the common citizen.
The scheme, designed to last for 10 years, operates with a self-financing mechanism through the establishment of the Regional Connectivity Fund (RCF).
The RCF funds the viability gap funding (VGF) requirements of the scheme by levying certain domestic flights, thereby stimulating growth and development in the aviation sector.
As part of the scheme, the Airports Authority of India has waived the airport fee.
Issues with the scheme
Route Discontinuance: Some routes launched under UDAN have been discontinued, raising concerns about their sustainability.
Challenges in Expansion: Efforts to improve connectivity to hilly regions and islands through helicopters and seaplanes have faced hurdles due to land unavailability and operational difficulties.
Unrecovered since the Pandemic: The COVID-19 pandemic has adversely affected the aviation industry, further impacting the sustainability of airlines.
Various Challenges
Financial Constraints: Many smaller airlines struggle with insufficient funds, making it difficult to maintain aircraft, pay rentals, and provide staff salaries.
Maintenance Issues: Smaller players often have limited aircraft that are poorly maintained, and acquiring new planes is expensive.
Pilot Availability: The availability of pilots can be a challenge for smaller airlines, leading to higher costs when hiring foreign pilots.
Competition: Routes dominated by bigger domestic players like IndiGo and SpiceJet tend to see better success rates.
Way Forward
Extended Subsidy Period: Airlines need an extension of the subsidy period to develop routes sustainably and achieve self-sufficiency.
Addressing Pandemic Impact: The impact of the COVID-19 pandemic on travel restrictions and passenger safety should be considered when evaluating the losses incurred by airlines.
Collaboration and Support: The government and stakeholders need to collaborate to address financial constraints and maintenance issues faced by smaller airlines.
Continuous Evaluation: Regular evaluation and necessary adjustments in the UDAN scheme are essential to overcome challenges and ensure successful implementation.
Conclusion
While India has made significant strides in airport development, challenges related to commercial viability and infrastructure readiness must be addressed to ensure sustainable air connectivity across the nation.
Renewed focus on the UDAN scheme and optimizing airport infrastructure can pave the way for a robust aviation sector that benefits smaller cities and contributes to the overall growth of the nation’s economy.
From UPSC perspective, the following things are important :
Prelims level: International Tiger Day
Mains level: Tiger Conservation Efforts
CentralIdea
July 29th was celebrated the world over as International Tiger Day in a bid to raise awareness on various issues surrounding tiger conservation.
India’s tiger population has witnessed significant growth over the past decade, owing to successful conservation efforts under the Project Tiger initiative.
About International Tiger Day
It was first instituted in 2010 at the Tiger Summit in St Petersburg, Russia when the 13 tiger range countries came together to create Tx2, the global goal to double the number of wild tigers by the year 2022.
Celebrating 50 Years of Project Tiger
Historical Context: Project Tiger was launched in 1973 to promote the conservation of tigers when their population was alarmingly low, hovering around 2,000 due to hunting and habitat destruction.
Landmark Achievement: Over the past 50 years, India’s tiger population has made a remarkable recovery, standing at 3,167 in 2022 as compared to just 268 in 1973.
Population Growth and Distribution
Decade-wise Growth: The tiger population has shown a remarkable growth trajectory in recent years. In 2010, there were 1,706 tigers, which increased to 2,226 in 2014 and further rose to 3,582 in 2022.
Regional Distribution: In 2022, the states with the highest tiger populations were Madhya Pradesh (785), Karnataka (563), Uttarakhand (560), and Maharashtra (444). Nearly 25% of the tigers were reported outside protected areas.
Conservation Efforts and Successes
Tiger Reserves: India’s tigers are mainly concentrated in 53 dedicated tiger reserves covering about 75,796 square km, which accounts for approximately 2.3% of the country’s total land area.
Successful Reserves: Reserves like Corbett National Park in Uttarakhand (260 tigers), Bandipur (150), and Nagarhole (141) in Karnataka have shown commendable success in tiger conservation.
Project Tiger: Launched in 1973, Project Tiger played a crucial role in conserving the species, ensuring not just the protection of tigers but also preserving their natural habitats.
Challenges and Concerns
Habitat Fragmentation: The growing human population and developmental activities have led to the fragmentation of tiger habitats, affecting their dispersal and increasing human-tiger conflicts.
Quality of Forest Cover: The degradation of forest cover can impact prey availability and contribute to human-wildlife conflict, especially in regions like Central India and the Eastern Ghats.
Human-Wildlife Conflict: As tiger habitats shrink and corridors get disrupted, encounters between tigers and humans have increased, leading to conflicts and potential danger to both tigers and people.
Legal Framework Dilution: Some proposed amendments to environmental acts and the approval of projects in protected areas have raised concerns about the dilution of the legal framework supporting tiger conservation.
Way forward
Development with Ecological Sensibility: Upcoming infrastructure projects, like highways, are being planned with safe passageways for tigers and other animals to ensure minimal disruption to their movement.
Relocation and Rehabilitation: Relocation of human settlements from core areas of tiger reserves is incentivized to increase protected land and improve tribal livelihoods.
Conclusion
Conservation Commitment: The success of tiger conservation in India has come through the commitment of people, political will, and strong legal and policy frameworks.
Sustained Efforts: Despite the successes, continued efforts and vigilance are essential to ensure the continued growth of the tiger population and its harmonious coexistence with human communities.
From UPSC perspective, the following things are important :
Prelims level: Monsoon and cropping pattern
Mains level: Monsoon's erratic behavior and its impact on Indian agriculture and food security
What’s the news?
As of July 30, the current month has witnessed a significant 15.7% above-normal rainfall, transforming the cumulative deficit into an overall 6% surplus for the period from June 1 to July 30.
Central idea
The southwest monsoon made a tardy start, arriving seven days late this year, resulting in 52.6% below-normal rainfall during the first two weeks. By the end of June, there was a cumulative deficiency of 10.1%. However, the scenario changed dramatically from the last week of June, as the monsoon recovered remarkably, covering the entire country by July 2—six days ahead of schedule.
The monsoon’s erratic behavior and its impact on agriculture
Delayed Crop Planting: The late arrival of the southwest monsoon raised concerns among farmers about their ability to sow crops on time, potentially affecting overall agricultural productivity.
Uneven Rainfall Distribution:
During the first two weeks of the monsoon, the country experienced a substantial rainfall deficit, with the overall rainfall being 52.6% below the normal long-period average.
Eastern and southern India, except Tamil Nadu and Maharashtra, were among the regions that received insufficient rainfall, which can lead to water stress and impact crop growth and yields.
Cumulative Deficiency: By the end of June, the cumulative rainfall deficiency stood at 10.1%. This cumulative deficit further intensified worries about agricultural output and food security, as it could affect the availability of water for crops during crucial growth stages.
Crop Recovery: Despite the abysmal start, the monsoon showed signs of recovery. This turnaround led to increased kharif crop plantings, including rice, which had been lagging behind last year’s levels until mid-July.
Positive Impact on Sowing: The monsoon’s recovery improved sowing conditions for most major agricultural regions, except for certain areas in Uttar Pradesh, Bihar, Jharkhand, and West Bengal, where rainfall remained deficient.
Subsequent Impact on Yields: While the monsoon’s recovery positively impacted crop sowing, the ultimate impact on yields would largely depend on the rainfall during August and September.
El Niño Concerns
The Oceanic Niño Index (ONI) in June exceeded the El Niño threshold of 0.5 degrees, reaching 0.8 degrees Celsius.
Many global weather agencies predicted that El Niño would persist and strengthen through the 2023-24 winter.
El Niño’s potential strengthening raised concerns about its impact on India’s monsoon in the coming months, particularly during August.
El Niño is known to suppress rainfall in India, which could lead to a weakening of the monsoon during this crucial period.
A weakened monsoon can adversely affect crop growth, yields, and overall agricultural productivity.
If rainfall activity becomes progressively weaker due to El Niño’s influence, the implications can extend beyond the kharif season and impact the rabi winter-spring crops as well.
Rabi crops, dependent on stored rainwater, might be more vulnerable to a weakened monsoon, leading to potential losses and food production challenges.
Prospects of food security: Food inflation and stock situation
Rice and Wheat Stocks: As of July 1, rice and wheat stocks in government godowns were reported to be at 71.1 million tonnes (mt). This stock level is the lowest in five years for this date.
Impact of the Delayed Monsoon on Rice Planting:
Due to the delayed monsoon, rice acreage initially picked up only after mid-July. It is unclear how much of this acreage is under short-duration varieties (around 125 days from seed to grain maturity).
If the rice belt had received rain on time, farmers might have planted more long-duration varieties (around 150–155 days), which yield higher at about 1–2 tonnes per hectare.
Re-transplanting in Punjab and Haryana: There are reports of farmers in Punjab and Haryana having to undertake paddy re-transplanting in large areas along the Beas, Sutlej, Ghaggar, and Yamuna rivers. This re-transplanting is likely for shorter duration varieties that usually yield less.
Sugar Stocks and Exports: The estimated sugar stocks with mills at the end of September 2023 are projected to be 6.3 mt, a six-year low. The Indian government has already banned exports of sugar to manage domestic supply.
Pulses and Edible Oil:
Among pulses, arhar (pigeon-pea) and urad (black gram) have registered a dip in acreage due to rain deficiency in Maharashtra, Karnataka, and Telangana. However, Rajasthan is expected to deliver a bumper crop of moong (green gram).
Chana (chickpea) has ample stocks due to government procurement, and masoor (red lentil) is being imported at rates below the government’s minimum support price.
Edible Oil Inflation: Edible oil inflation is likely to remain low, supported by imports projected to exceed 15 mt, a new all-time high, by the end of the current oil year in October 2023.
Milk Production and Prices: The supply of milk is expected to ease with buffalo calvings beginning from August. This will reflect in increased milk production, peaking during the winter and remaining high until next March-April.
Vegetables: Vegetable inflation has been on the rise, contributing to an unacceptably high consumer price index inflation number for July. However, with faster supply responses, vegetable inflation is expected to fall as easily as it rose.
Way forward
Monitor Monsoon Developments: Continuously monitor the progress of the monsoon and its distribution across regions. Timely and accurate weather forecasting can help farmers make informed decisions about crop planting and irrigation.
Crop Diversification: Encourage farmers to diversify their crop choices to reduce dependence on water-intensive crops. Promote the cultivation of climate-resilient crops that require less water and are suitable for specific agro-climatic zones.
Strategic Buffer Stock: Maintain a strategic buffer stock of essential food commodities like rice and wheat to address any temporary supply shortages and stabilize food prices during periods of volatility.
Supply Chain Management: Improve supply chain logistics to ensure smooth transportation and distribution of agricultural produce. This will help prevent post-harvest losses and ensure the timely availability of food in the market.
Price Stabilization Measures: Implement effective price stabilization measures to control food inflation and prevent price volatility. These measures may include regulating exports, imports, and MSP (Minimum Support Price) mechanisms.
Encourage Pulses and Oil seed Production: Provide incentives and support to farmers for increasing pulses and oilseed production. This can reduce the country’s dependence on imports and stabilize prices.
Support the Dairy Sector: Extend support to the dairy sector to enhance milk production and improve the availability of dairy products. This can help stabilize milk prices and ensure food security.
Conclusion
The monsoon’s erratic behavior has impacted crop sowing and food inflation in India. While the recovery has been promising, concerns over El Niño persist, making it vital for the government to monitor the agricultural sector closely and implement appropriate measures to ensure food security.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Seasonal Migrant Workers, challenges and policies
What’s the news?
The High Court of Bombay has recently taken suo motu cognisance of the exploitation of the intra-State workforce that migrates seasonally from the drought-affected and water-scarce regions of Marathwada to the sugar-belt region of western Maharashtra.
Central Idea
According to the Maharashtra Sugar Commissioner, in 2022-23, the net area under sugar cane was 1.487 million hectares, and there were 203 crushing factories in the State that were expected to produce 138 lakh metric tons of sugar. Though intra-State migrant workers form the backbone of the sugar cane industry and economic growth, they have remained critically marginalised and oppressed for several decades.
Seasonal Migrant Workers
Seasonal migrant workers are individuals who temporarily migrate from one region or area to another for work during specific seasons or periods of the year.
These workers move to places where demand for labor is higher during certain agricultural or industrial activities, often due to seasonal variations in work opportunities.
For example, Workers from the drought-affected and water-scarce regions of Marathwada in Maharashtra migrate to the sugar-belt districts of western Maharashtra. They do so to work in the sugar cane industry, particularly during the harvesting season.
Challenges faced by the these workers
Exploitative Labor Practices: Seasonal migrant workers in the sugar cane industry are often recruited through labor contractors known as Mukadams. This exploitative system allows sugar factories to obtain a large volume of temporary, cheap, and efficient workforce.
Low Wages and Job Insecurity: Migrant workers often receive low wages for their labor, and their work is typically temporary and seasonal. As a result, they face uncertainty about future employment opportunities.
Inadequate Working Conditions: The nature of sugar cane harvesting and processing tasks can be physically demanding and hazardous. Workers, including women, may engage in strenuous work, such as head loading, leading to accidents.
Lack of Social Protection: Seasonal migrant workers may lack access to social protection schemes, such as health insurance and other benefits, leaving them financially vulnerable in case of illness or injury.
Invisibility and Marginalization: Migrant workers are often marginalised and overlooked in the regions where they migrate for work. This invisibility can limit their access to essential services, education, and healthcare.
Education Challenges for Children: Children accompanying their parents may face disruptions in their education due to migration, and there may be insufficient alternative schooling models, impacting their learning and development.
Primary drivers of this migration
Lack of Employment Opportunities:
Marathwada, being a region with drought-prone areas and water scarcity, faces challenges in providing sufficient employment opportunities to its rural population.
The agricultural sector, which is the primary source of employment, often experiences prolonged unemployment after the sowing of rabi crops, leaving many small and marginal peasant households without work.
Crop Failures and Debt: The region of Marathwada is susceptible to crop failures due to erratic monsoons and water shortages. Repeated crop failures result in the accumulation of debt for many farmers and agricultural laborers, making their economic situation precarious.
Acute Unemployment: Apart from crop-related employment, there may be limited industries or economic activities in the region that can absorb the surplus labor during non-agricultural seasons, leading to acute unemployment.
Attractive Job Opportunities in the Sugar Cane Industry:
The sugar-belt districts of western Maharashtra, such as Sangli, Kolhapur, Pune, Satara, Solapur, and Ahmednagar, are known for their sugar cane industry.
During the sugar cane harvesting and processing seasons, there is a high demand for labor in the sugar factories and fields, making it an attractive destination for seasonal migrant workers seeking employment.
Mukadam System and Labor Contractors:
The Mukadam system/ contractors act as intermediaries and provide labor couples to the factories.
Workers, often in need of employment, rely on the Mukadams, creating a system of dependence that perpetuates the migration.
Lack of Diversified Livelihood Options: Limited livelihood diversification in the home region may prompt individuals to seek employment opportunities in other regions with more robust economic activities.
Concerns and challenges in framing meaningful policies
Inadequate Data and Migration Tracking:
Lack of comprehensive data is hindering the formulation of meaningful policies for seasonal migrants, making it difficult to address their specific needs effectively.
The Migration Tracking System (MTS) application, launched by the Women and Child Development Department in 2022, aimed to track and enumerate seasonal migrants, particularly focusing on children, pregnant women, and lactating mothers to ensure their well-being and access to services.
However, the MTS falls short in providing a complete picture of seasonally migrating families, including their employment status, wage structure, and entitlement coverage.
Plight of Women:
Women working in the sugar cane industry face strenuous and hazardous tasks, such as headloading cane bundles and carrying heavy weights on trucks or trolleys (Oxfam India 2020).
Their work adversely impacts their bodies, causing musculoskeletal disorders and several gynecological issues (Oxfam India 2020).
Early and forced marriages among migrant women lead to problems for adolescent girls, resulting in early pregnancies (15-17 years), deliveries without trained birth attendants, and frequent childbirth (UNESCO).
Studies have also reported recurring cases of violence and sexual harassment linked to labor contractors (Mukadams) and male workers, further exacerbating the vulnerabilities faced by migrant women.
Plight of Children:
Children accompanying their parents to sugar cane fields face blatant violations of the Right to Education (National Education Policy, NEP, 2020).
The lack of sufficient alternative schooling models affects their education, potentially forcing them into child labor.
School records often fail to acknowledge the physical absence of these children from school, perpetuating the lack of proper education for them (International Institute for Population Sciences, IIPS, and UNICEF, 2022)
Way forward: Need for government interventions
Data Collection and Migration Tracking System (MTS): The government should conduct a periodic and time-bound enumerating exercise to create a credible databank of seasonal migrants. Expand the scope of the Migration Tracking System (MTS.
Empowering Labor Administration: Strengthening labor administration and enforcing labor laws is essential to protect the rights of migrant workers. Regular inspections should be conducted.
Holistic Policy Development: Formulate comprehensive policies specifically addressing the needs of seasonal migrants. Collaborate with different Ministries and Departments to address the multi-dimensional challenges faced by migrant workers and their families.
Addressing Women’s Plight: Implement long-term intervention strategies to address the challenges faced by women migrant workers. Provide training and opportunities for skill development to enhance their economic independence and ensure their health and safety in the workplace.
Ensuring Children’s Education: Implement alternative schooling models for children accompanying their parents to sugar cane fields. Protect their Right to Education and prevent them from being forced into child labor.
Access to Justice and Safe Working Conditions: Ensure that seasonal migrants have access to justice and are guaranteed safe and healthy working and living conditions. Address the exploitative Mukadam system prevalent in the sugar cane industry to protect the workers’ rights.
Conclusion
Empowering seasonal migrant workers in Maharashtra’s sugar cane industry is crucial to fostering inclusive economic growth and protecting human rights. The State government must act with strong political will to formulate comprehensive policies and interventions that address the vulnerabilities faced by these workers at both the source and destination regions.
From UPSC perspective, the following things are important :
Prelims level: Digital payment ecosystem
Mains level: Digital payments landscape in India, financial inclusion and challenges
Central Idea
The digital payments landscape in India has experienced a remarkable transformation in recent years, with the United Payments Interface (UPI) playing a pivotal role in this revolution. With every neighborhood kirana store now equipped with a QR code scanner, the popularity of digital transactions has soared.
Modes of payment and their growth trends
UPI (United Payments Interface):
Introduction: UPI was introduced in 2016.
Growth: Transactions in UPI have grown in value and volume since its introduction.
Push factors: Demonetisation in November 2016 and the COVID-19 lockdown in 2020 played a significant role in the widespread adoption of digital payments, contributing to UPI’s popularity.
Growth rate: From June 2021 to April 2023, UPI payments grew at an average monthly rate of 6%.
Share of total digital retail payments: The share of UPI payments increased from less than 20% in mid-2021 to about 27% in March 2023.
Comparison with other modes: UPI’s growth rate outpaced all other modes of payment, including NEFT, IMPS, debit card payments, and prepaid payments.
Impact on NEFT: The increasing share of UPI payments came mainly at the cost of NEFT transactions, which experienced a decline of about 10 points (from 64% to less than 54%) over the same period.
Real-time payment settlement: UPI’s popularity might be due to its real-time payment settlement system, similar to IMPS, unlike NEFT.
NEFT (National Electronic Funds Transfer):
Growth rate: NEFT transactions grew at an average monthly rate of 3% from June 2021 to April 2023.
Declining share: The share of NEFT transactions in the total value of digital retail payments declined from 64% to less than 54% over the same period, with UPI gaining popularity.
IMPS (Immediate Payment Service):
Growth rate: IMPS transactions grew at an average monthly rate of 3% from June 2021 to April 2023.
Stable share: The share of IMPS transactions remained relatively stable at about 9% in the total value of digital retail payments.
Debit card payments and Prepaid payments:
Growth rate: Debit card payments and prepaid payments experienced slower growth, with an average monthly rate of 1.5% from June 2021 to April 2023.
Combined share: The combined share of these modes of payment did not exceed 2.5% of the overall digital retail transactions.
Analysis: Financial Inclusion
Bank Account Penetration:
India has made remarkable progress in bank account penetration, with 80% of the population having bank accounts in 2017 and 2021, up from 53% in 2014.
However, a concerning issue is the high percentage of inactive accounts, which stands at 38%. This indicates that a significant portion of the population remains excluded from actively utilizing banking services.
Gender Gap:
There is a substantial gender gap in digital transactions, with only 28% of women conducting any digital transaction in 2021, compared to 41% of men.
The difference of 13 points between men and women in digital transactions is higher than many other comparable countries like Vietnam, Brazil, China, and Kenya, signaling a need for targeted measures to empower women in accessing and using digital payment methods.
Rural-Urban Divide:
The rural-urban gap in digital payments is evident, with only 30% of Indians in rural areas making or receiving any digital payment in 2021, compared to 40% in urban areas.
In contrast, countries like Bangladesh and Kenya display less discrepancy between rural and urban digital payment rates, with over 70% of their populations engaged in digital transactions.
Overall Digital Transaction Figures:
Despite the increasing popularity of UPI, only 35% of the population reported carrying out any digital transaction in 2021, indicating that a considerable proportion of the population is not actively participating in digital payments.
India’s figures for digital transactions are lower compared to the average of 57% for all developing countries and the world average of 64%
Way forward
Promote Digital Literacy: Provide training programs and workshops to enhance digital literacy, focusing on women and vulnerable populations.
Reduce Gender Disparities: Implement targeted measures to bridge the gender gap in digital transactions, encouraging more women to participate in digital payment ecosystems.
Enhance Digital Infrastructure: Expand internet connectivity and improve digital infrastructure in remote and rural areas to ensure equitable access to digital payment facilities.
Encourage Active Usage of Bank Accounts: Develop financial literacy programs to educate people about the benefits of using their bank accounts actively, thereby reducing the prevalence of inactive accounts.
Enable Business Participation: Encourage businesses, especially small and medium-sized enterprises, to adopt digital payment methods by providing incentives and simplifying the onboarding process.
Strengthen Security Measures: Enhance cybersecurity protocols and fraud prevention mechanisms to build trust and confidence among users in using digital payment platforms.
Conclusion
The UPI has undeniably revolutionised India’s digital payments landscape. However, the journey towards achieving Digital India is far from complete. To address the persisting issues, policymakers must devise targeted interventions to ensure that the benefits of digital payments reach all sections of society. Only then can India truly harness the potential of digital payments and attain the goal of a cashless economy.
