Explained | 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: NA
Mains level: India’s Pushback against Diesel
Central diIdea
Recent remarks by Road Transport Minister have sparked discussions about India’s transition away from diesel-powered vehicles and the potential imposition of an additional 10% GST as a “pollution tax.”
While these remarks have stirred concerns in the automotive sector, the government’s commitment to reducing air pollution and greenhouse gas emissions remains a key driving force in this shift.
India’s Pushback against Diesel
Policy Shift: Minister’s comments align with a broader policy shift aimed at reducing India’s reliance on diesel. The government aims to produce 40% of the country’s electricity from renewables and achieve net-zero emissions by 2070.
Diesel Consumption: Diesel currently accounts for approximately 40% of India’s petroleum products consumption, with the transport sector being a significant consumer.
High Taxation: The government already imposes a 28% tax on diesel cars, coupled with additional cess based on engine capacity, resulting in a nearly 50% tax rate.
Impact on Diesel-Run Cars
Industry Response: Several automakers have scaled back their diesel portfolios. Maruti ceased diesel vehicle production in 2020, citing the high cost of upgrading to meet BS-VI emission norms.
Emissions Concerns: Diesel engines emit higher levels of oxides of nitrogen (NOx), contributing to environmental concerns. The Volkswagen scandal in 2015 further tarnished diesel’s reputation globally.
Fuel Economy: While diesel engines offer better fuel economy and torque, the price difference between diesel and petrol has diminished since the decontrol of fuel prices in 2014.
Reasons for Individual Diesel Preference
Fuel Efficiency: Diesel engines offer higher energy content per liter and inherent efficiency, making them preferred for heavy vehicles and haulage.
Cost Consideration: Historically, diesel was significantly cheaper than petrol, driving a preference for diesel-powered vehicles. However, this price gap has narrowed.
Reasons for Carmakers’ Retreat from Diesel
Emissions Challenges: Diesel engines tend to emit higher levels of oxides of nitrogen (NOx), making them environmentally less favourable compared to petrol engines.
Volkswagen Scandal: The 2015 Volkswagen emissions scandal, where the company manipulated emissions controls during lab tests, tarnished diesel’s reputation globally, affecting perceptions in India as well.
BS-VI Emission Norms: The rollout of the BS-VI emission norms from April 1, 2020, posed a significant challenge for diesel vehicles. Meeting these stringent standards required complex and costly upgrades.
Economic Viability: Upgrading diesel engines to comply with BS-VI norms involved installing three crucial components: a diesel particulate filter, a selective catalytic reduction system, and an LNT (Lean NOx trap). This technological overhaul resulted in high costs for car manufacturers, making diesel options economically unviable.
Impact on Diesel Buyers
Changing Economics: The historical price advantage of diesel over petrol has diminished since the decontrol of fuel prices in 2014. The price difference now stands at approximately Rs 7 per liter, significantly reducing the economic incentive for diesel vehicles.
Consumer Shift: Diesel cars, once preferred by Indian consumers, have seen their market share decline steadily, accounting for less than 20% of overall passenger vehicle sales in 2021-22.
Policy Implications
Phasing Out Diesel: Globally, many countries are moving towards phasing out diesel vehicles in alignment with environmental goals.
Challenges in India: Implementing a total ban on diesel vehicles in India poses challenges due to substantial investments made by carmakers and oil companies in transitioning to BS-VI standards. Additionally, the commercial vehicles segment heavily relies on diesel, making an immediate ban disruptive.
Alternative Fuels: Experts emphasize the importance of technology-agnostic policies that prioritize stringent operational standards, including emissions norms. Transitioning to alternative fuels like liquefied natural gas (LNG) and exploring electric vehicles (EVs) can play a pivotal role in reducing greenhouse gas emissions.
Hydrogen Potential: The Energy Transition Advisory Committee report highlights the potential of hydrogen as a motive fuel, which could reduce emissions and transform the logistics market.
Environmental Initiatives: Oil marketing companies have taken steps to reduce the environmental footprint of diesel, including lowering sulphur levels and introducing biodiesel specifications.
Conclusion
India’s transition away from diesel is driven by environmental concerns, emissions reduction goals, and changing fuel economics.
While a pollution tax on diesel vehicles remains speculative, it reflects the government’s commitment to cleaner and greener alternatives.
This shift has implications for both the automotive industry and individual vehicle owners, emphasizing the need for cleaner and more sustainable transportation options.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Fraternity and other key concepts
What’s the news?
In his thought-provoking book Political Fraternity: Democracy Beyond Freedom and Democracy, philosopher Angel Puyol emphasizes the significance of fraternity in the realm of politics.
Central idea
Despite its historical roots dating back to Plato and its coexistence with liberty and equality in liberal political philosophy, fraternity often remains a neglected concept. However, India’s struggle for independence and the subsequent establishment of constitutional democracy underscored the importance of fraternity in a society marked by hierarchical social inequalities.
Origins of the Concept
Ancient Greece:
Plato: The concept of fraternity can be traced back to ancient Greece. In Plato’s Lysis, the philosopher introduces the term philia (love) in the context of a strong desire to pursue wisdom. It is suggested that love and friendship among individuals became more meaningful when they shared knowledge. This emphasis on the act of sharing provides an early glimpse into the discourse of fraternity in ancient Greece.
Aristotle: The emergence of the polis in Aristotle’s philosophy is noted, where the polis (city-state) was seen as the logical location for individuals who were primarily political beings. Within the polis, justice and friendship among citizens became enduring features, laying the foundation for the idea of political fraternity.
Medieval Christian Society: During the Middle Ages, the article suggests that fraternity found fertile ground within the context of Christian society in Europe. Fraternal bonds often developed within religious institutions and orders, reflecting the communal and moral values of the time.
The French Revolution:
The concept of fraternity found its entry into politics with the French Revolution of 1789.
It was during this revolutionary period that the triptych of liberté, égalité, and fraternité (liberty, equality, and fraternity) became a foundational slogan.
Fraternity took on a revolutionary dimension, emphasizing the solidarity of citizens in their pursuit of common goals.
How is fraternity in India different from the idea enshrined in the Constitution?
Caste-Based Divisions: The Constitution envisions fraternity as a means to bridge social divides and create unity among India’s diverse population. However, the deeply rooted caste system in India continues to influence social interactions, politics, and access to opportunities, making it challenging to achieve a fraternity that transcends these divisions.
Community vs. Individual: The Indian Constitution prioritizes individual rights and liberties, which can sometimes conflict with the communitarian approach underlying fraternity.
Social Inequalities: The constitutional concept of fraternity presupposes social and economic equality among citizens. However, India continues to grapple with significant economic disparities and enduring discrimination based on caste, gender, and other factors, hindering the development of genuine fraternity.
Communal Tensions: Religious and communal tensions in India have, at times, hindered the pursuit of fraternity. The constitutional vision of fraternity should extend across religious and communal boundaries to foster inclusivity. However, divisive politics occasionally exploits religious differences, undermining the spirit of fraternity.
The limits of fraternity in India
Caste-Based Divisions: The deeply ingrained caste system in India continues to influence social interactions and opportunities, posing a significant challenge to achieving fraternity that transcends these divisions.
Shared History and Ideological Differences: In India, historical and ideological differences rooted in social inequalities can hinder the development of fraternity. Ideological motivations can also hamper political fraternity between individuals, particularly when rooted in social inequalities among different communities.
Secular Conception of Fraternity: Given the communal nature of India’s traditional civic life and the predominance of communal ties, the article suggests that a secular conception of fraternity is necessary. To overcome the challenges posed by ideological and communal differences, fraternity in India needs to be rooted in politics, where caste privileges can be challenged.
Affirmative Actions and Equality: The introduction of affirmative action, including the reservation system, aimed to address inequality and promote fraternity. However, these policies have sometimes resulted in fraternity primarily within specific caste communities rather than fostering unity across caste lines.
Religious and Communal Tensions: Religious and communal tensions have, at times, overshadowed the pursuit of fraternity in India. Fraternity should ideally extend across religious and communal boundaries, but divisive politics can exploit religious differences and hinder the spirit of fraternity.
The role of equality as a prerequisite
Both Dr. B.R. Ambedkar and philosopher John Rawls stressed the importance of equality as a prerequisite for fraternity.
While affirmative actions, such as the reservation system, were introduced to address historical inequalities, they have often resulted in fraternity primarily within specific caste or community groups rather than fostering unity across these boundaries.
Conclusion
In India, the coexistence of caste and political fraternity is a challenging endeavor due to the country’s unique social landscape. Achieving political fraternity that transcends caste boundaries requires addressing these complex issues. The future of Indian politics will determine whether fraternity or caste prevails, and this choice will shape the country’s destiny.
From UPSC perspective, the following things are important :
Prelims level: G20 and global missions
Mains level: Benefits of the AU's inclusion in the G20
What’s the news?
India’s 18th G20 Summit, held under the dynamic leadership of Prime Minister Narendra Modi, made history by admitting the African Union (AU) into the G20.
Central idea
The addition of the African Union as the 21st member brings substantial weight to the G20. It significantly enhances the G20’s global economic and financial governance. With Africa’s representation, the G20 becomes a more inclusive and influential body, covering a vast portion of the world’s population, GDP, and trade.
Africa’s Stake and Strength
Stake in G20 Inclusion:
Representation: Africa’s inclusion in the G20 through the African Union (AU) provides the continent with a significant voice and presence in global economic and financial governance.
Global Economic Impact: Africa’s inclusion in the G20 is notable because it represents the continent’s growing economic influence. Africa possesses substantial resources, including agricultural land, minerals, metals (including rare earth minerals), and a young workforce.
Developmental Challenges: Africa faces numerous developmental challenges, including widespread poverty, conflict, political instability, climate stress, environmental degradation, and socioeconomic devastation from various crises. These challenges underscore the importance of Africa’s participation in the G20 for addressing global public goods (GPGs) and development issues.
Strengths Leveraged in the G20:
Resource Abundance: Africa’s wealth of natural resources positions it as a significant contributor to G20 discussions on resource utilization, sustainable development, and global economic growth.
Economic Integration: Africa’s ongoing economic and political integration, including initiatives like the African Free Trade Area and “Agenda 2063: The Africa We Want,” demonstrate its commitment to becoming an economic powerhouse.
Demographic Advantage: Africa’s large and youthful population presents opportunities for future global economic growth and trade partnerships.
Alignment with Global Goals: Africa’s role in achieving global goals, particularly the Sustainable Development Goals (SDGs), underscores its importance within the G20 for coordinated efforts to meet these goals.
Benefits of the AU’s inclusion in the G20
Enhanced Representation and Credibility: The AU’s inclusion makes the G20 more representative and enhances its credibility as a global decision-making body.
Effective Policy Implementation: AU’s participation is expected to improve the implementation of G20 policies, programs, measures, principles, and initiatives.
African Voice and Influence: The AU’s presence provides Africa with a voice, participation, and leadership role at the global high table, enabling African countries to influence the global agenda and priorities.
Cooperation and Leveraging Resources: The AU’s inclusion fosters cooperation within the G20 and allows for the mutual leveraging of Africa’s abundant resources for the benefit of all member nations.
Strategic Benefits for India
Deepened Partnerships: India can strengthen its strategic, political, economic, technological, trade, and people-to-people partnerships with African nations. AU’s inclusion provides India with a unique opportunity to foster deeper relationships across various sectors.
Regional and Sub-Regional Engagement: India can engage with African countries on both regional and sub-regional levels. This enables India to extend its influence and cooperation beyond individual nations and into larger African regions.
Collaboration with Like-Minded Partners: India can collaborate with like-minded partners from the North, such as Japan and the United States, to further its interests in Africa. These partnerships can lead to joint initiatives and investments in the continent.
Diplomatic Trust: Prime Minister Modi’s successful efforts to secure the AU’s inclusion in the G20 have earned the trust and gratitude of African nations. This trust can translate into diplomatic goodwill and cooperation on various global issues.
A Counterbalance: The AU’s presence in the G20 can serve as a counterbalance to China’s efforts to influence African countries, especially in matters related to UN Security Council reform. India’s alignment with African interests can bolster its position.
Economic Opportunities: Africa’s economic growth and integration present opportunities for Indian businesses to invest and trade in the region. India can leverage its participation in the G20 to facilitate economic engagement with African partners.
Global Influence: By actively engaging with African nations within the G20, India can enhance its global influence and stature as a country that promotes inclusive development and cooperation.
G20’s global mission
Conclusion Global Economic and Financial System: The G20 plays a pivotal role in shaping the global economic, financial, and monetary system. It strives to establish a framework that is fair and adheres to established rules and principles.
Providing Global Public Goods (GPGs): The G20 is committed to providing global public goods, which can encompass shared resources, technologies, and knowledge that benefit all nations. These may include international tax packages and initiatives in areas like digital health.
Addressing Global Public Bads (GPBs): Beyond providing public goods, the G20 addresses global public bads—issues and threats that transcend national borders. This involves taking concerted actions against challenges such as money laundering, counterterrorism financing, and other transnational risks.
Supporting Developing Countries:
A significant aspect of the G20’s mission is to create a level playing field for developing countries. It involves taking affirmative measures to assist those nations facing the most significant challenges.
Key areas of focus include reforming Multilateral Development Banks (MDBs), providing stimulus for achieving the Sustainable Development Goals (SDGs), financing initiatives related to green development and climate transition, issuing Special Drawing Rights (SDRs) during crises, and addressing food security and supply chain disruptions.
Conclusion
Admitting the African Union into the G20 during India’s presidency is a historic achievement that enhances the G20’s credibility and inclusivity. AU’s inclusion adds a valuable perspective to the G20’s discussions and decisions, making it a more powerful and representative body on the world stage.
From UPSC perspective, the following things are important :
Prelims level: G20
Mains level: India in the G20: Analysis
What’s the news?
The 18th G20 Summit, hosted by India in New Delhi from September 9 to 10, revolved around the theme One Earth, One Family, One Future. This global forum convened to deliberate on crucial issues encompassing food security, climate change, energy, development, healthcare, and digitalization.
Central idea
The G20 Summit marked a successful conclusion as India transferred the G20 Presidency to Brazil. India’s performance across various socioeconomic metrics within the G20 context reveals a mixed picture of progress and challenges.
GDP per capita comparison (1970–2022)
1970: India’s GDP per capita was $111.97, ranking 18th out of 19 regions analyzed. India had one of the lowest GDP per capita figures among the group.
2022: By 2022, India’s GDP per capita had risen significantly to $2,388.62. However, despite this growth, India had moved to the last position among the 19 regions, indicating that other regions had experienced more substantial economic growth during this period.
Human Development Index (HDI) comparison (1990–2021)
1990: In 1990, India’s HDI stood at 0.43, indicating a relatively low level of human development. At that time, India ranked towards the lower end of the list among the 19 countries and regions analyzed.
2021: By 2021, India’s HDI had improved to 0.63, signifying significant progress in terms of human development over the decades. However, despite this improvement, India still ranked at the bottom of the list among the 19 regions, highlighting the need for further advancements in various aspects of human development, including life expectancy, education, and living standards.
Health Metrics Comparison
Life Expectancy (1990-2021):
In 1990, India had an average life expectancy of 45.22 years.
China, at the same time, had a lower average life expectancy of 33.27 years.
By 2021, India’s life expectancy had increased to 67.24 years.
Despite this improvement, India’s ranking remained the same, and China surpassed India in terms of life expectancy.
Infant Mortality Rate (1990-2021):
In 1990, India had an infant mortality rate of 88.8 per 1,000 live births, ranking it at the bottom of the 20 regions analyzed.
By 2021, India’s infant mortality rate had improved to 25.5 per 1,000 live births.
India’s ranking improved to 19th place, just ahead of South Africa (26.4), but it still lags behind many other regions in terms of infant mortality.
Labor Force Participation Rate (LFPR) Comparison (1990-2021-22)
1990:
In 1990, India’s LFPR for individuals above 15 years of age was 54.2%.
This LFPR ranking placed India at the 18th position among the 20 regions analyzed.
India was ahead of Italy (49.7%) and Saudi Arabia (53.3%) in LFPR.
2021-22:
By 2021-22, India’s LFPR had decreased to 49.5%.
This decline resulted in a slip in India’s ranking to 19th place.
India was now only ahead of Italy (49.4%) among the 20 regions in terms of LFPR.
Women’s Representation in Parliament (1998-2022)
1998:
In 1998, women constituted 8.1% of the Indian Parliament.
At that time, India ranked 15th out of the 19 regions analyzed in terms of women’s representation in Parliament.
While there were women in leadership positions, India’s representation was relatively low compared to some other regions.
2022:
By 2022, women’s representation in the Indian Parliament had nearly doubled to 14.9%.
However, despite this increase, India’s ranking had slipped to the 18th position among the 19 regions.
India was just ahead of Japan (9.9%) in terms of women’s representation in Parliament.
Environmental Progress
Carbon Emissions (1990 and 2020):
In 1990, India was the lowest emitter of CO2 among the 20 regions analyzed.
This demonstrated India’s relatively low carbon emissions at that time.
In 2020, India maintained its status as the lowest emitter of CO2 among the same regions, indicating a consistent trend of relatively low carbon emissions.
Renewable Energy Adoption (1990 and 2015):
In 1990, most G20 nations, excluding the U.S. and Mexico, generated less than 2% of their electricity from renewables.
By 2015, India had made some progress, with 5.36% of its electricity coming from renewable sources.
However, India’s ranking in this regard was 13th out of the 20 regions analyzed, suggesting relatively slow progress in adopting eco-friendly energy sources compared to some other G20 nations.
Conclusion
As India hands over the G20 Presidency to Brazil, there is an opportunity for the nation to build on its successes and address areas that require further attention to achieve a more balanced and equitable socioeconomic landscape
From UPSC perspective, the following things are important :
Prelims level: Phanigiri Buddhist artefacts
Mains level: NA
Central Idea
The Phanigiri artefacts belonging to 200 BCE-400 CE are on display at the New York Metropolitan Museum of Art.
About Phanigiri
Phanigiri, which means “hillock of snake hood,” is a small village located around 150 km from Hyderabad.
A treasure trove of ancient Buddhist art was discovered in 1942, and it re-emerged into the world’s spotlight in 2003.
Phanigiri’s Artefacts
Stupa-like architecture: The discoveries at Phanigiri, particularly the thoranas (archways), have rewritten the narrative of Buddhism in southern India.
Presence of sects: These thoranas are among the earliest found south of Sanchi and provide evidence of both Mahayana and Hinayana schools of thought coexisting in Phanigiri.
Deification of Buddha: Phanigiri reveals a crucial transition in the perception of Buddha, from a historical and spiritual figure to a deity. This transformation is etched in the artifacts discovered here.
From UPSC perspective, the following things are important :
Prelims level: Gold and Copper Sulfide Nanoparticles
Mains level: NA
Central Idea
Researchers at the Indian Institute of Science (IISc) have pioneered a novel approach with the potential to detect and eradicate cancer cells, particularly those forming solid tumour masses.
Gold and Copper Sulfide Nanoparticles
Innovative Nanoparticles: IISc scientists have engineered hybrid nanoparticles that blend gold and copper sulfide, resulting in multifunctional nanoparticles with promising implications for cancer detection and treatment.
Photothermal and Oxidative Properties: These nanoparticles exhibit photothermal capabilities, where they absorb light and convert it into heat, effectively killing cancer cells. Moreover, they produce singlet oxygen atoms, which further contribute to the cells’ toxicity.
Combining Mechanisms: The nanoparticles employ both photothermal and oxidative mechanisms to target and eliminate cancer cells effectively.
Revolutionizing Cancer Diagnosis
Ultrasound Waves: Beyond cancer treatment, these hybrid nanoparticles hold potential for cancer diagnosis. Their photoacoustic property enables them to absorb light and generate ultrasound waves.
High Contrast Detection: The ultrasound waves enhance the contrast for detecting cancer cells once the nanoparticles reach them. This method offers superior image resolution compared to traditional CT and MRI scans.
Clarity and Oxygen Saturation Measurement: Scans generated through ultrasound waves boast greater clarity and the ability to measure oxygen saturation within tumors, enhancing cancer detection accuracy.
Integration with Existing Systems: The nanoparticles can be seamlessly integrated with current detection and treatment systems. For instance, endoscopes used for cancer screening can trigger nanoparticle-induced heat generation with focused light.
Overcoming Size Limitations
Size Advantages: These hybrid nanoparticles, measuring less than 8 nm, possess a critical advantage in terms of mobility within tissues and their ability to reach tumors.
Potential Safe Elimination: Due to their diminutive size, researchers anticipate that these nanoparticles can exit the human body naturally without accumulating. However, extensive safety studies are essential to confirm their suitability for internal use.
Successful Lab Testing: In laboratory settings, the researchers conducted successful tests using these nanoparticles on lung and cervical cancer cell lines, demonstrating their potential.
Clinical Development: The promising outcomes from this study propel the nanoparticles closer to clinical development.
From UPSC perspective, the following things are important :
Prelims level: Picoflare Jets
Mains level: Not Much
Central Idea
A recent revelation from the Solar Orbiter Aircraft, a collaborative endeavour between the European Space Agency and NASA, has illuminated the Picoflare jets erupting from the sun’s outer atmosphere.
These jets, marked by their supersonic emergence and brief durations of 20 to 100 seconds, have captured the attention of scientists and space enthusiasts alike.
What are Picoflare Jets?
Picoflare jets, observed amidst emissions from the observed coronal hole, are diminutive in scale but pack a potent punch.
Their ephemeral existence belies their significance, as scientists have calculated that they contribute a substantial portion of the solar winds’ energy.
These solar emanations earned their name, “picoflare jets,” owing to their energy levels, which hover around one-trillionth of the solar flares’ immense energy potential.
Solar winds, driven by strong gusts, can not only craft auroras in Polar Regions but also disrupt Earth’s magnetic field and jeopardize electronic systems on satellites and terrestrial circuits.
About Solar Orbiter Aircraft
A Stellar Journey: Launched in 2020, the Solar Orbiter Aircraft embarks on a mission to capture unprecedented images of the Sun, propelling closer than any previous spacecraft.
Instrumentation Excellence: Equipped with six remote-sensing instruments and four sets of in situ instruments, the spacecraft is primed for comprehensive solar exploration.
Mission Objectives: The Solar Orbiter Aircraft carries two primary objectives: to scrutinize the Sun’s 11-year cycle of magnetic activity ebbs and flows and to delve into the mysteries of the solar corona, the upper echelon of the Sun’s atmosphere.
From UPSC perspective, the following things are important :
Prelims level: Reciprocity Principle
Mains level: NA
Central Idea
Reciprocity, a fundamental principle of physics, dictates that if a signal can travel from Point A to Point B, it can also journey from Point B to Point A.
This intuitive concept holds significance in various aspects of daily life and serves as the basis for many technological breakthroughs and challenges.
Exploring Reciprocity
The Principle Defined: Reciprocity posits that a signal transmitted from a source (Point A) to a destination (Point B) can also travel in the reverse direction by merely swapping the positions of the source and destination.
Everyday Analogies: Familiar scenarios, such as shining a torchlight or observing an object under a streetlight, exemplify reciprocity in action.
Counterintuitive Instances: Some situations defy intuition, like interrogation scenes in movies where one party can see through a window while the other cannot, or observing someone walking in darkness.
Applications in Antennas and Beyond
Antennas: Reciprocity plays a pivotal role in antenna technology, enabling both the transmission and reception of signals. Engineers utilize reciprocity to assess antennas’ reception quality, simplifying testing processes for radar, sonar, seismic surveys, and MRI scanners.
Challenges in Spying: While reciprocity aids signal reception, it poses challenges in espionage, as it allows signals to be captured from an enemy base while potentially revealing one’s own location.
One-Way Traffic: To counteract reciprocity, scientists employ devices composed of components with specific properties. These devices break reciprocity, enabling signals to travel in one direction only.
Diverse Ways to Break Reciprocity
Magnet-Based Non-Reciprocity: Utilizing wave plates and Faraday rotators, this method disrupts reciprocity for electromagnetic waves.
Modulation: By continuously altering a medium’s parameters in time or space, modulation offers a means to control signal transmission.
Nonlinearity: Varying a medium’s properties based on signal strength and direction introduces nonlinearity, another avenue to break reciprocity.
Revolutionizing Technologies
Quantum Computing: Non-reciprocal devices find applications in quantum computing, where they amplify signals to detect quantum states effectively.
Miniaturization: The trend towards nanoscale and microscale devices includes non-reciprocal components, some as small as a strand of hair divided by a thousand. These miniature devices promise contributions to fields like self-driving cars, where efficient signal monitoring is essential for safety.
Prelims Only | 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: Gresham's Law
Mains level: Not Much
Central Idea
The law, named after English financier Thomas Gresham, came into play most recently during the economic crisis in Sri Lanka last year.
The Central Bank of Sri Lanka has fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar
About Gresham’s Law
Thomas Gresham: The law is named after Thomas Gresham, an English financier who advised the English monarchy on financial matters. It extends beyond paper currencies and applies to commodity currencies and various goods.
Bad money drives out good: This maxim illustrates a phenomenon that occurs when government-fixed exchange rates diverge from market exchange rates, causing undervalued currency to be withdrawn from circulation.
Arbitrarily Fixed Prices: Gresham’s Law operates whenever governments arbitrarily set prices, causing a commodity to become undervalued compared to its market exchange rate. This undervaluation drives the commodity out of the formal market.
Black Market: In such scenarios, the only way to acquire the undervalued commodity is through the black market, as it is no longer available through official channels.
Goods Outflow: Countries can also experience the outflow of certain goods when their prices are forcibly undervalued by the government.
Application to Commodity Money
Gold and Silver Coins: Gresham’s Law is particularly evident when a government fixes the exchange rate of commodity money, like gold and silver coins, well below their market value. In response, people may hoard or melt these coins to obtain their intrinsic value, which is higher than the government-set rate.
Recent Example in Sri Lanka
Economic Crisis in Sri Lanka: Gresham’s Law was observed during the economic crisis in Sri Lanka, where the central bank fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar.
Rupee Overvaluation: The government mandated that the price of the U.S. dollar should not exceed 200 Sri Lankan rupees, even though the black market rate indicated a higher value. This overvaluation of the rupee led to a decline in the supply of dollars and pushed the U.S. dollar out of the formal foreign exchange market.
Black Market Transactions: Individuals seeking U.S. dollars for foreign transactions were compelled to purchase them from the black market at rates exceeding 200 Sri Lankan rupees per dollar.
Conditions for Gresham’s Law to Apply
Government-Imposed Fixed Rates: Gresham’s Law operates when government authorities establish and enforce fixed exchange rates between currencies.
Effective Implementation: Effective enforcement of these rates by authorities is essential for the law to take effect.
Anti-thesis Concept: Thiers’ Law
“Good Money Drives Out Bad”: In the absence of government-imposed exchange rate fixes, the opposite phenomenon occurs. People tend to abandon currencies they perceive as of lower quality in favour of those they consider better, leading to the dominance of “good money.”
Thiers’ Law: This concept, known as Thiers’ Law and named after French politician Adolphe Thiers, complements Gresham’s Law.
From UPSC perspective, the following things are important :
Prelims level: Disaster Management
Mains level: Not Much
Central Idea
In the wake of natural disasters, states often request assistance from the central government.
Himachal Pradesh CM recently requested for a special disaster relief package and urged the designation of the calamity as a ‘national disaster.’
Natural Disaster Mitigation in States
Legal Framework: The 2005 Disaster Management Act provides the legal framework for addressing disasters, whether natural or man-made.
Defining disaster: It defines a “disaster” as an event causing substantial loss of life, human suffering, property damage, or environmental degradation beyond the community’s coping capacity.
National Disaster Management Authority (NDMA): The Act established the NDMA, headed by the Prime Minister, and State Disaster Management Authorities (SDMAs) led by Chief Ministers. These bodies, along with district-level authorities, form an integrated disaster management setup in India.
National Disaster Response Force (NDRF): The Act led to the creation of the NDRF, comprising several battalions or teams responsible for on-ground relief and rescue operations in various states.
Understanding the National Disaster Relief Fund (NDRF)
Mention in the Act: The NDRF is referenced in the 2005 Disaster Management Act and plays a crucial role in providing disaster relief.
State Disaster Relief Funds (SDRFs): States have their own SDRFs, which are the primary funds available for responding to notified disasters. The Central Government contributes 75% to SDRFs in general states and 90% in northeastern and Himalayan states.
Utilization of SDRFs: SDRFs are allocated for immediate relief efforts following notified calamities, including cyclones, droughts, earthquakes, fires, floods, tsunamis, and more.
Central Assistance: In the event of a severe calamity where state SDRF funds are insufficient, additional central assistance can be provided by the National Disaster Response Fund (NDRF).
Who determines a Severe Calamity?
Procedure: States follow a specific procedure to classify a calamity as “severe.” This involves submitting a memorandum detailing sector-wise damage and fund requirements. An inter-ministerial central team assesses the damage on-site.
Committee Approval: Specific committees review these assessments and submit reports. A High-Level Committee must approve the immediate relief amount to be released from the NDRF.
Criteria: The classification of a calamity as “severe” considers factors such as intensity, magnitude, assistance needs, and more.
Additional Funds for Disaster Mitigation
Funds Allocation: Funds for NDRF and SDRFs, allocated for preparedness, mitigation, and reconstruction, are part of budgetary allocations.
Financing mechanism: The 15th Finance Commission introduced a new methodology for state-wise allocations, considering factors like past expenditure, risk exposure, hazard, and vulnerability.
Utilization: NDRF and SDRF funds are released in two equal instalments, typically with requirements like Utilization Certificates. However, in urgent situations, these requirements can be waived.
State Disaster Mitigation Fund (SDMF): This fund supports activities such as forest restoration and public awareness. It received an allocation of Rs 32,030 crore from the 15th Finance Commission.
National Disaster Mitigation Fund (NDMF): The NDMF, amounting to Rs 13,693 crore, is dedicated to national disaster mitigation efforts.
From UPSC perspective, the following things are important :
Prelims level: Ancient India-Europe Maritime Trade Route, Port of Muziris
Mains level: Not Much
Central Idea
The India-Middle East-Europe Economic Corridor, announced at the G20 Summit, traces its historical roots to an ancient maritime trade route connecting the Indian subcontinent and the Europe.
India- Europe: Glimpse into Historical Trade Route
Early Discoveries: The trade between Rome and India during antiquity was established by early excavations. Sir Mortimer Wheeler’s work at Arikamedu in the 1930s and 40s confirmed the existence of Indo-Roman trade in the 1st century CE.
Recent excavations: Ongoing archaeological excavations, such as those at Muziris in Kerala and Berenike in Egypt, continue to yield new evidence.
Revised Understanding: However, early interpretations often overlooked the agency of Indian merchants and ship owners in this trade. Recent discoveries have expanded and corrected our understanding of this ancient trade network.
Staggering Scale: Recent estimates, supported by the Muziris Papyrus, reveal the immense scale of the Red Sea trade. Custom taxes on goods from India, Persia, and Ethiopia possibly contributed up to one-third of the Roman exchequer’s income.
Details unveiled by Muziris Excavations
Custom Taxes: The Muziris Papyrus detailed a cargo’s value, highlighting its enormous worth, with one cargo alone being equivalent to the purchase of premium farmland in Egypt or a prestigious estate in central Italy.
Roman Revenue: The import tax collected on this cargo alone exceeded two million sesterces. Extrapolating from these figures, Indian imports into Egypt were likely worth over a billion sesterces annually, with tax authorities generating 270 million sesterces.
Comparative Significance: These revenues surpassed those of entire subject countries, emphasizing the pivotal role of this trade route in sustaining the Roman Empire’s vast conquests and legions.
Muziris Papyrus
Trade details
Peak Period: During the 1st and 2nd centuries CE, a maritime highway connected the Roman Empire and India through the Red Sea. This route witnessed hundreds of ships travelling in both directions annually.
Traded Goods: The Romans had a great demand for Indian luxuries, including perfumes, ivory, pearls, gemstones, and exotic animals like elephants and tigers. Pepper, India’s major export, was particularly sought after, finding its way into Roman cuisine.
Trade from Rome: The flow of goods from Rome to India was limited, with gold being a prominent export. Roman wine was one notable exception, appreciated by Indians.
Pre-Common Era Trade
Early Indian Diaspora: Evidence suggests the existence of an Indian diaspora in the Middle East during the time of the Indus Valley Civilization (c. 3300-1300 BCE). This early trade was coastal and involved smaller quantities of goods.
Roman Period Expansion: The trade expanded significantly during Roman times, facilitated by large cargo ships directly connecting the subcontinent and the Roman Empire. Romans played a key role in industrializing this trade.
Post-Conquest Peak: The conquest of Egypt by the Romans in the 1st and 2nd centuries CE opened up the route to India, leading to a substantial increase in trade.
Organization and Duration of Journeys
Highly Organized Trade: Contracts were established between Indian merchants in Kerala and shippers in Alexandria. Goods were transported in containers, similar to modern practices, with references to insurance.
Understanding Monsoons: Indians recognized the monsoon winds’ seasonal patterns, enabling them to navigate the route efficiently. The journey to Egypt took approximately six to eight weeks, depending on favorable wind conditions.
Extended Stays: Indian diaspora rented houses in Egyptian ports while waiting for wind patterns to shift, allowing for the integration of Indian culture into these regions.
Roles of Indians in the Trade
Indian Seafaring Culture: Evidence suggests that Indian dynasties were interested in seafaring, as depicted in Ajanta paintings and early Indian coin designs featuring ships.
Indian Sailors: Graffiti left by Indian sailors, primarily Gujaratis from Barigaza (modern-day Bharuch), has been discovered in the Hoq caves on the island of Socotra, emphasizing their active participation in the trade network.
Comparing with the Silk Road
Indian Centrality: The ancient economic and cultural hub of Asia, the Indian subcontinent, and its ports played a central role in maritime East-West exchange. The concept of the “Silk Road” is relatively recent and inaccurately portrays the ancient trade routes.
Historical Invisibility: The Silk Road concept was coined in the late 19th century and did not exist in ancient or medieval times. It gained popularity in the 20th century, fostering romanticized ideas about East-West connectivity.
Recent Politicization: Chinese President Xi Jinping’s Belt and Road Initiative has politicized the Silk Road, making it a central component of Chinese foreign policy.
From UPSC perspective, the following things are important :
Prelims level: Generative AI
Mains level: AI's potential and challenges and steps towards Responsible AI
What’s the news?
In the digital age, Artificial Intelligence (AI) has emerged as a guiding light, illuminating the path to progress and offering vast untapped potential. However, the central concern revolves around maintaining control as AI’s capabilities continue to expand.
Central idea
The recent G20 Delhi Declaration and the G7’s commitment to draft an international AI code of conduct underscore the pressing need to prioritize responsible artificial intelligence (AI) practices. With over 700 policy instruments under discussion for regulating AI, there is a consensus on principles, but implementation remains a challenge.
The Beacon of AI: Progress and Potential
Progress in AI:
Investment Surge: Private investments in AI have skyrocketed, as indicated by Stanford’s Artificial Index Report of 2023. Over the past decade, investments have grown an astonishing 18-fold since 2013, underscoring the growing confidence in AI’s capabilities.
Widespread Adoption: AI’s influence is not limited to tech giants; its adoption has doubled since 2017 across industries. It’s becoming an integral part of healthcare, finance, manufacturing, transportation, and more, promising efficiency gains and innovative solutions.
Economic Potential: McKinsey’s projections hint at the staggering economic potential of AI, estimating its annual value to range from $17.1 trillion to $25.6 trillion. These figures underscore the transformative power of AI in generating economic growth and prosperity.
The Potential of AI:
Diverse Applications: AI’s potential knows no bounds. Its ability to process vast amounts of data, make predictions, and automate complex tasks opens doors to countless applications. From enhancing healthcare diagnosis to optimizing supply chains, AI is a versatile tool.
Accessible Technology: AI is becoming increasingly accessible. Open-source frameworks and cloud-based AI services enable businesses and individuals to harness its power without the need for extensive technical expertise.
Solving Complex Problems: AI holds promise in tackling some of humanity’s most pressing challenges, from climate change to healthcare disparities. Its data-driven insights and predictive capabilities can drive evidence-based decision-making in these critical areas.
AI’s Challenges
Biased Models: AI systems often exhibit bias in their decision-making processes. This bias can arise from the data used to train these systems, reflecting existing societal prejudices. Consequently, AI can perpetuate and even exacerbate existing inequalities and injustices.
Privacy Issues: AI’s data-intensive nature raises significant concerns about privacy. The collection, analysis, and utilization of vast amounts of personal data can lead to breaches of individual privacy. As AI systems become more integrated into our lives, safeguarding personal information becomes increasingly challenging.
Opaque Decision-Making: The inner workings of many AI systems are often complex and difficult to interpret. This opacity can make it challenging to understand how AI arrives at its decisions, particularly in high-stakes contexts like healthcare or finance. Lack of transparency can lead to mistrust and hinder accountability.
Impact Across Sectors: AI’s challenges are not confined to a single sector. They permeate diverse industries, including healthcare, finance, transportation, and more. The ramifications of biased AI or privacy breaches are felt across society, making these challenges highly consequential.
The Menace of Artificial General Intelligence (AGI)
Towering Danger: AGI is portrayed as a looming threat. This refers to the potential development of highly advanced AI systems with human-like general intelligence capable of performing tasks across various domains.
Rogue AI Systems: Concerns revolve around AGI systems going rogue. These systems, if not controlled, could act independently and unpredictably, causing harm or acting against human interests.
Hijacked by Malicious Actors: There’s a risk of malicious actors gaining control over AGI systems. This could enable them to use AGI for harmful purposes, such as cyberattacks, misinformation campaigns, or physical harm.
Autonomous Evolution: AGI’s alarming aspect is its potential for self-improvement and adaptation without human oversight. This unchecked evolution could lead to unforeseen consequences and risks.
Real Possibility: These dangers associated with AGI are not hypothetical but represent a real and immediate concern. As AI research advances and AGI development progresses, the risks of uncontrolled AGI become more tangible.
Pivotal Global Interventions
EU AI Act: In 2023, the European Union (EU) took a significant step by introducing the draft EU AI Act. This legislative initiative aims to provide a framework for regulating AI within the EU. It sets out guidelines and requirements for AI systems, focusing on ensuring safety, fairness, and accountability in AI development and deployment.
US Voluntary Safeguards Framework: The United States launched a voluntary safeguards framework in collaboration with seven leading AI firms. This initiative is designed to encourage responsible AI practices within the private sector. It involves AI companies voluntarily committing to specific guidelines and principles aimed at preventing harm and promoting ethical AI development.
Key Steps Toward Responsible AI
Establishing Worldwide Consensus: It is imperative to foster international consensus regarding AI’s risks. Even a single vulnerability could enable malicious actors to exploit AI systems. An international commission dedicated to identifying AI-related risks should be established.
Defining Standards for Public AI Services: Conceptualizing standards for public AI services is critical. Standards enhance safety, quality, efficiency, and interoperability across regions. These socio-technical standards should describe ideals and the technical mechanisms to achieve them, adapting as AI evolves.
State Participation in AI Development: Currently dominated by a few companies, AI’s design, development, and deployment should involve substantial state participation. Innovative public-private partnership models and regulatory sandbox zones can balance competitive advantages with equitable solutions to societal challenges.
Conclusion
AI’s journey is marked by immense potential and formidable challenges. To navigate this era successfully, we must exercise creativity, humility, and responsibility. While AI’s potential is undeniable, its future must be guided by caution, foresight, and, above all, control to ensure that it remains a force for good in our rapidly evolving world.
From UPSC perspective, the following things are important :
Prelims level: Simultaneous elections
Mains level: One nation one election analysis, impact on the federal structure
What’s the news?
The next Lok Sabha election is scheduled to be held before June 16, 2024. Should the concept of simultaneous elections be realized and implemented, it would necessitate the shortening of the terms of legislative assemblies across many states. This alignment could potentially require term extensions or curtailments in 2029.
Central idea
The recent move by the Union government to establish a committee to explore the feasibility of conducting simultaneous elections to various tiers of governance in India has sparked a significant debate. While the idea of simultaneous elections promises cost savings, it also raises crucial questions about its impact on the federal structure of Indian democracy and the unique roles of different governance tiers.
The Specificity of Governance Tiers
India’s governance structure involves multiple tiers, each with distinct roles and responsibilities.
Representatives in Indian Governance Tiers:
Lok Sabha Representatives: 543
Assembly Legislators: Over 4,100
Urban Local Ward Representatives: 89,194
Elected Panchayat Representatives: Nearly 31.89 lakh (across village panchayats, panchayat unions, and district panchayats)
The cost-saving argument for simultaneous elections
Cost Parity: The 2018 Law Commission report claims that the expenses for Lok Sabha and Assembly elections in any state are approximately equal, forming the basis for the cost-saving argument.
Reduced Duplication: Simultaneous elections aim to reduce duplication of administrative efforts, such as voter registration, setting up polling booths, and deploying security personnel, which can lead to cost savings by optimizing resource utilization.
Efficient Resource Allocation: Holding elections together allows for more efficient allocation of resources like electoral staff, transportation, and security, as they can be shared across different levels of elections.
Streamlined Campaigns: Political parties and candidates can potentially save on campaign costs when elections are synchronized, as they need to conduct campaigns once for multiple levels of government rather than separately.
Economies of Scale: The argument posits that simultaneous elections could leverage economies of scale, leading to cost savings across various aspects of the electoral process.
Implications for Federalism
Subsuming Governance Tiers: Simultaneous elections could lead to various governance tiers’ issues being bundled into a single electoral mandate. This might require voters to prioritize a wide range of concerns within a single election, potentially blurring the roles and responsibilities of each governance tier.
Federalism Undermined: Such subsumption has the potential to undermine the principles of federalism in India, which involve a clear division of powers between central and state governments, each addressing specific issues.
Distinct Roles of Tiers: Federalism recognizes that local issues are best addressed locally, while national issues are the central government’s domain. Simultaneous elections may blur these distinctions, forcing voters to prioritize certain issues due to the single-mandate nature of the elections.
Local Autonomy: Local self-governance through municipalities and panchayats could face challenges as simultaneous elections combine local and national issues. This may dilute the focus on local governance.
Unique Needs Ignored: India’s governance structure is designed to address the unique needs of citizens at different levels. For instance, local concerns like garbage management are meant to be handled locally. Simultaneous elections might not allow voters to adequately prioritize such local concerns.
Way forward
In-Depth Federalism Assessment: Prioritize a comprehensive assessment of the federal aspects of Indian democracy before proceeding with simultaneous elections. This assessment should analyze the potential impact on federalism, the distinct roles of governance tiers, and the preservation of local autonomy.
Transparent Public Discourse: Encourage transparent public discourse and awareness campaigns to ensure that citizens are well-informed about the implications of simultaneous elections. Engage with citizens, experts, and political parties to gather diverse perspectives and concerns.
Consultation with State Governments: Conduct extensive consultations with state governments and political parties to understand how simultaneous elections may affect state autonomy and governance. Address the concerns and feedback of state-level stakeholders.
Pilot Projects: Consider implementing simultaneous elections on a trial basis in select regions or states to assess the practical challenges and benefits. Pilot projects can provide valuable insights into the feasibility and impact of such a significant electoral reform.
Legal and Constitutional Framework: Develop a robust legal and constitutional framework that explicitly accommodates the principles of federalism and the unique roles of different governance tiers. Ensure that the framework safeguards the autonomy of local bodies and addresses the specific needs of each governance level.
Conclusion
While the idea of simultaneous elections in India offers the promise of cost savings, it should be approached with careful consideration of its impact on federalism and the specificity of governance tiers. The committee, led by former President Ramnath Kovind, must conduct a thorough analysis of these federal aspects to ensure that the essence of Indian democracy, with its multifaceted governance structure, is preserved and enhanced.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Food-price inflation in India, food security, impacts and solutions
What’s the news?
India, touted as the world’s fastest-growing large economy, is grappling with a formidable challenge: soaring food-price inflation.
Central Idea
The rise in the price of food first accelerated sharply in 2019 and has climbed in most years thereafter. In July this year, annual inflation exceeded 11%, the highest in a decade. An implication of continuing high food-price inflation is that a section of the population could face hardship in consuming food of adequate nutritional value.
The grim reality
The FAO’s State of Food Security and Nutrition in the World report reveals a staggering figure: an estimated 74% of India’s population cannot afford a healthy diet as of 2021, encompassing roughly one billion individuals.
Given a population of 1,400 million, this makes for approximately one billion Indians.
Factors contributing to the failure to control food-price inflation in India
Supply-side Challenges: Weather disruptions, infrastructure gaps, and supply chain inefficiencies hinder food production and distribution.
Rising Input Costs: Increased expenses for fertilizers, pesticides, and labor raise production costs, leading to higher food prices.
Government Policies: Distortionary policies like minimum support prices (MSPs) and export restrictions affect market dynamics and prices.
Ineffectiveness of Macroeconomic Policy: Traditional macroeconomic policies, which have been relied upon to control inflation, have proven ineffective in addressing food-price inflation.
Failure of the Reserve Bank of India (RBI): The RBI, responsible for monetary policy in India, has consistently failed to control inflation, with rates exceeding the target for four years.
Inadequacy of Inflation Targeting: The RBI’s approach of “inflation targeting,” involving output contraction during inflation spikes, is considered misleading and unsuitable for managing food inflation driven by supply-side issues.
Limitation of Central Banks: Central banks, including the RBI, are perceived as incapable of effectively addressing the problem of food-price inflation, particularly within a reasonable time frame.
A study report: Trend in the price of food in Mumbai over 2018–2023
Rising Food Prices: The primary factor behind food price inflation is the significant increase in the cost of food items. Specifically, the cost of preparing a traditional thaali meal at home in Mumbai has risen by 65% from 2018 to 2023.
Wage Growth Lag: Although there has been wage growth for both manual and salaried workers, with manual workers’ wages increasing by 38% and salaried workers’ wages increasing by 28% during the same period, these wage increases have not kept pace with the rapid rise in food prices.
Purchasing Power Erosion: The households in Mumbai have experienced a substantial reduction in purchasing power. As food prices have risen considerably, households are forced to allocate a larger portion of their income to food expenses, which leaves less for other essential needs and discretionary spending.
Nutritional Consequences: Food price inflation has led to adverse nutritional consequences, particularly an increase in the prevalence of anemia, especially among adult women in Mumbai. This rise in anemia cases is primarily attributed to nutrient deficiencies caused by reduced access to nutritious food due to escalating prices.
Validity of the FAO’s Estimate: The FAO’s estimates that over half of India’s population may struggle to afford a healthy diet. Even in the event of a potential 100% overestimation by the FAO, it would still leave a staggering 500 million people in this category, surpassing the populations of most countries globally except China.
The significance of the Green Revolution
Food Self-Sufficiency:
At the time of the Green Revolution, India was grappling with severe food shortages due to consecutive droughts.
The government’s supply-side response, which included providing farmers with high-yielding seeds, affordable credit, and guaranteed prices through procurement, was highly successful.
Within a few years, India achieved self-sufficiency in food production and was no longer dependent on food imports.
Economic and geopolitical significance:
While some mistakes were made during the Green Revolution, such as the excessive use of chemical fertilizers and a focus on cereals over pulses, the program’s success had significant economic and geopolitical implications.
It allowed India to assert self-reliance in a polarized Cold War era, a vital geopolitical consideration.
Poverty Alleviation: The Green Revolution played a pivotal role in reducing poverty in India by increasing agricultural productivity and farm incomes. The increased food production also benefited the poor, as it made food more accessible and affordable.
Lessons for the Future: While acknowledging past mistakes, the article suggests that the Green Revolution’s lessons can be applied to address the current challenges of food price inflation. Specifically, the focus should be on correcting past errors and launching a second agricultural revolution to lower the cost of food production while ensuring sustainability.
Proposed initiatives to combat food price inflation and ensure access to nutritious food for all
Increase Public Investment in Irrigation: Address inefficiencies in public expenditure on irrigation to expand irrigated land.
Facilitate Land Leasing: Lift restrictions on land leasing to encourage productivity-enhancing capital investments.
Revitalize Agricultural Research: Reinvigorate India’s network of agricultural research institutes to harness innovation.
Reinstate Extension Services: Restore and strengthen agricultural extension services to disseminate best practices.
Focus on Protein Production: Develop a program to substantially increase protein production to address India’s protein deficiency.
Conclusion
Taming India’s food-price inflation crisis demands immediate and concerted efforts. Our past achievements, such as the Green Revolution, serve as a testament to our capabilities when we address food security head-on. Let us seize this moment to launch a second agricultural revolution, ensuring that every Indian has access to affordable, nutritious food and once again reducing poverty and malnutrition on a massive scale.
From UPSC perspective, the following things are important :
Prelims level: Earthquake
Mains level: NA
Central Idea
A devastating earthquake struck Morocco, resulting in significant casualties and damage.
Details of the Moroccan Earthquake
Shallow Epicenter: The quake’s epicentre was near the town of Ighil, approximately 70 km southwest of Marrakech. It was considered fairly shallow, with varying depth estimates.
Higher Energy: Shallow earthquakes are typically more dangerous as they carry more energy, making them more destructive compared to deeper quakes.
Major Causes
Tectonic Convergence: The earthquake resulted from the northward convergence of the African plate with the Eurasian plate along a complex plate boundary.
Faulting: The USGS attributed the quake to oblique-reverse faulting at a shallow depth within the Moroccan High Atlas Mountain range.
Fault Classification: Oblique-slip faults exhibit characteristics of both dip-slip and strike-slip faults, occurring in areas of compression where tectonic plates converge.
Why discuss this?
Low Seismicity: Earthquakes are uncommon in North Africa, with low seismicity rates along the northern margin of the continent.
Historic Strength: This earthquake was the strongest ever recorded in the mountainous region, catching Morocco unprepared for such an event.
Construction Vulnerabilities: Many Moroccan buildings, especially in rural areas and older cities, are not constructed to withstand strong tremors.
What is an Earthquake?
An earthquake is an intense shaking of the ground caused by movement under the earth’s surface.
It happens when two blocks of the earth suddenly slip past one another.
This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.
What exactly causes Earthquakes?
As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates.
The edges of the plates are called plate boundaries, which are made up of faults.
The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other.
As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
The location below the earth’s surface where the earthquake starts are called the hypocenter, and the location directly above it on the surface of the earth is called the epicentre.
From UPSC perspective, the following things are important :
Prelims level: Vidya Samiksha Kendras (VSKs)
Mains level: Not Much
Central Idea
Under the National Digital Education Architecture (NDEAR), the Ministry of Education is spearheading the establishment of Vidya Samiksha Kendras (VSKs) across Indian states.
What are Vidya Samiksha Kendras (VSKs)?
VSKs are data repositories designed to consolidate information from various educational schemes and initiatives run by the Ministry of Education.
These repositories aim to streamline data management, promote data analysis, and enhance decision-making in the education sector.
Key Components of VSKs:
Comprehensive Data: VSKs will aggregate data from diverse educational programs, including:
PM-POSHAN mid-day meal programs
Teacher training records from the National Initiative for School Heads’ and Teachers’ Holistic Advancement portal
Textbook content from Digital Infrastructure for Knowledge Sharing
School dropout and attendance data via Unified District Information System for Education (UDISE+)
Students’ learning outcomes from National Achievement Survey
Performance Grading Index evaluating state-level school education systems.
Central and State-Level Centers: At the central level, VSK operations are housed in the Central Institute of Educational Technology building within the National Council for Educational Research and Training (NCERT) campus. Ernst and Young, a multinational IT company, manages these operations.
Advisory Role: The EkStep Foundation, a non-profit organization co-founded by Nandan Nilekani, former Chairman of the Unique Identification Authority of India (UIDAI), provides advisory support for the VSK project’s implementation.
Transition to Automation: While data entry currently relies on manual processes and is available for download in Excel format, there are plans to transition to automation through Application Programming Interface (API) integration. This shift will enable seamless communication and data integration between multiple platforms at the central, state, and district levels.
State-Level Initiatives
Funding Allocation: The central government has allocated funds ranging from ₹2 to ₹5 crore to each state for the establishment of VSKs. These funds cover pre-configured open-source hardware and software, as well as human resources.
States in Action: States like Gujarat, Maharashtra, Odisha, and Jharkhand have already initiated the setup of these technological platforms.
Benefits of VSKs:
Data Correlation and Analysis: The primary objective of VSKs is to enable data analytics through correlation. With vast data from numerous educational schemes, VSKs seek to derive meaningful insights by connecting various data points.
Example Scenarios:
Attendance Patterns: Analyzing attendance data alongside student dropout rates to identify potential correlations.
Mid-Day Meals Impact: Investigating whether consistent mid-day meal provision in certain regions leads to increased school attendance.
Student Improvement Tracking: Monitoring students’ progress over time using data from weekly tests to tailor educational support.
Gross Access Ratio Mapping: VSKs will facilitate mapping the location of schools with population data to assess the Gross Access Ratio. This information can guide the establishment of new schools, support industry clusters in understanding skilling needs, and assist in higher education planning based on demand and future projections.
From UPSC perspective, the following things are important :
Prelims level: Orphan Diseases
Mains level: NA
Central Idea
Health discussions often revolve around common ailments, such as diabetes, which affect a significant portion of the population.
However, amidst these well-known health issues, there are numerous rare/ orphan diseases that, though infrequent, can have devastating consequences for patients and their families.
What are Orphan Diseases?
Rare diseases, often referred to as orphan diseases, are characterized by a low prevalence rate, typically affecting one person in a population of 10,000.
Challenges Posed
Difficulty in Diagnosis: Rare diseases are challenging to diagnose, particularly for young medical practitioners who may have limited exposure to such cases. The rarity of these conditions means that many healthcare professionals may not have encountered them during their training.
Lack of Research: Limited prevalence has historically resulted in insufficient research efforts. With fewer cases to study, there has been a lack of scientific understanding and effective treatments for many rare diseases.
High Treatment Costs: While advances in medical research have led to the development of therapies for some rare diseases, the costs associated with these treatments are often exorbitant. From an Indian perspective, these costs can range from Rs. 1 million to Rs. 20 million per year, making them unaffordable for many.
Initiatives and Progress in India
Increasing Awareness: Greater awareness of rare diseases and advancements in genomic technologies for diagnosis have begun to address these challenges. As awareness spreads, more cases are being identified and correctly diagnosed.
Regulatory Incentives: Several countries, including India, have introduced regulatory incentives to encourage pharmaceutical companies to invest in research and development for neglected diseases. This has led to increased interest in orphan drugs.
Patient-Driven Initiatives: Patient groups and organizations in India are actively contributing to rare disease research and treatment. One notable example is the Dystrophy Annihilation Research Trust (DART), which is conducting clinical trials for Duchenne’s muscular dystrophy.
Government Initiatives: The government’s National Policy for Treatment of Rare Diseases is gradually making an impact. It aims to address rare diseases prevalent in India, such as cystic fibrosis, hemophilia, lysosomal storage disorders, and sickle-cell anaemia.
Lessons from Leprosy
Incidence Reduction: Leprosy, once prevalent in India, is now considered a rare disease due to successful efforts in reducing its incidence.
Research Benefits: Research on orphan diseases like leprosy can yield broader societal benefits. For instance, studies on synthetic antibiotics have shown a potential to curb the spread of leprosy to household relatives.
Government Goals: Research findings may contribute to achieving the government’s objective of making India leprosy-free by 2027.
Conclusion
Rare diseases present unique healthcare challenges that have long been neglected.
However, recent progress in diagnosis, research, and patient-driven initiatives is gradually improving the landscape for rare disease patients in India.
As awareness grows and regulatory support continues, there is hope for enhanced diagnosis, treatment options, and affordability, ultimately improving the lives of those affected by these conditions.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: False Promise of Marriage
Central Idea
The proposed Bharatiya Nyaya Sanhita (BNS), 2023, seeks to address a specific issue concerning sexual relationships based on false promises of marriage.
Section 69 of this Bill introduces significant changes in this regard.
Section 69 of BNS – Sexual Intercourse on False Promise of Marriage
Creation of Two Offenses: Section 69 within Chapter 5 of the BNS, titled “Offences against Women and Children,” defines ‘sexual intercourse by employing deceitful means etc.’ and includes two violations: one by deceitful means and one by a ‘false promise to marry.’
Deceitful Means: The first violation involves employing deceitful means, such as a false promise of employment, promotion, or marriage, with the intent to induce sexual relations. If a person uses such means, they could face penalties of up to ten years of imprisonment.
False Promise to Marry: The second violation pertains to making a false promise to marry a woman with the intention of breaking that promise, solely to obtain her consent and exploit her sexually. This offense is also subject to a penalty of up to ten years of imprisonment.
Why Section 69 Is Introduced?
Historical Context: In the absence of a specific provision, cases of sexual intercourse based on false promises of marriage were previously addressed using other sections of criminal law, causing ambiguity.
Prevalence of Cases: Cases of sex under the “false promise of marriage” had been reported frequently, with victims often unable to seek legal remedy effectively.
Legal Ambiguity: The existing legal framework did not clearly distinguish between a ‘false promise’ and a ‘breach’ of promise to marry, creating complications in determining consent and intention.
Courts’ Handling of ‘False Promise of Marriage’ Cases
Judicial Interpretation: Courts had traditionally relied on existing laws like Sections 375 and 90 of the Indian Penal Code (IPC) to address such cases.
Consent Examination: Section 375 defines consent as an unequivocal voluntary agreement, and Section 90 considers consent given under “misconception of fact.” Courts examined cases based on these provisions.
Distinguishing Factors: Courts differentiated between a ‘false promise’ made with the intent to deceive and a ‘breach’ of promise made in good faith but not fulfilled.
Crucial Judgments: The Supreme Court’s judgment in ‘Pramod Suryabhan Pawar vs. State of Maharashtra’ (2019) highlighted the importance of the promise-maker’s intent to deceive. Another significant case, ‘Dileep Singh vs. State of Bihar,’ underscored the need for establishing a lack of intention to marry for the offense to be considered rape.
Implications and Critiques of Section 69
Endogamy Promotion: Critics argue that Section 69 may promote endogamy by shifting the focus from real harm and abuse to whether the man intended to marry, disregarding the complex social context in which such relationships occur.
Ambiguity and Discretion: The Bill’s vagueness and discretionary nature could perpetuate uncertainty and reliance on gender norms, potentially re-victimizing women.
Cycle of Consequences: While the Bill specifies the consequences of the crime, it may overlook the harm suffered by women, contributing to a cycle where justice remains elusive.
Conclusion
Section 69 of the proposed BNS, 2023, addresses a crucial issue related to sexual relationships based on false promises of marriage.
However, the Bill’s implementation and interpretation will require careful scrutiny to ensure justice is served without perpetuating harmful gender norms or social biases, as indicated by crucial judgments in relevant cases.
DOMR | 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: Circular Economy , E-Waste
Mains level: Read the attached story
Central Idea
The Indian Cellular and Electronics Association (ICEA) recently released a report titled ‘Pathways to Circular Economy in Indian Electronics Sector.’
This report, developed in collaboration with NITI Aayog, explores the possibilities of harnessing electronic waste (e-waste) to create a circular economy in India’s electronics sector.
It highlights the significant market potential, estimated at $7 billion that could be unlocked through effective e-waste management.
Current State of E-Waste Management in India
Predominantly Informal: E-waste management in India is primarily informal, with approximately 90% of e-waste collection and 70% of recycling handled by a competitive informal sector.
Role of Informal Sector: The informal sector excels in salvaging components from older devices and profiting from repairs. Industrial hubs like Moradabad witness the extraction of precious metals like gold and silver from printed circuit boards (PCBs).
Government Efforts: The Union Government introduced the E-Waste (Management) Rules, 2022, to digitize and provide visibility into e-waste movement. However, the informal sector remains a dominant force in e-waste management.
Significance of a Circular Economy
Growing Demand: The demand for electronics is increasing across all price segments, resulting in resource-intensive production and high emissions.
Circular Economy Philosophy: A circular economy aims to reintroduce discarded electronics, their components, and precious metals back into the electronics ecosystem, reducing waste and promoting resource efficiency.
Wealth Creation: Viewing materials as resources rather than waste can lead to wealth creation.ry.
Recycling E-Waste
Public-Private Partnerships: The ICEA report suggests public-private partnerships to establish a comprehensive “reverse supply chain.” This chain would involve collecting devices, wiping personal data, and further processing and recycling.
Auditable Database: Creating an auditable database of materials collected through this process and forming geographical clusters for device disassembly are proposed.
High Yield Recycling Centers: Incentivizing high-yield recycling centers is recommended to extract maximum value from electronic products.
Promoting Repair: Encouraging repair and extending product lifespans, possibly through support for a right-to-repair by users, can reduce the environmental impact of e-waste.
Challenges in E-Waste Management
Informal Sector: The large and competitive informal sector is difficult to track and regulate, making adherence to environmental norms challenging.
Device Stockpile: An estimated 200 million devices remain unused in consumers’ homes, as people are concerned about their personal data when recycling devices.
Capital Intensive: Establishing large-scale recycling plants requires substantial capital investment, with challenges in securing stable materials.
Material Scarcity: Securing materials to stabilize recycling plants is a complex issue, as materials are scattered and supply chains are unpredictable.
Transition from Informal to Formal: Replicating the success of the informal sector in a formalized and reliable manner remains a significant challenge.
Conclusion
The transformation of e-waste management into a circular economy is a promising venture for India’s electronics sector.
While the informal sector currently dominates this landscape, there is a growing need to formalize and regulate e-waste management.
The challenges are substantial, but with the right policies, public-private collaborations, and incentives, India can harness the $7 billion market opportunity and promote resource efficiency in its electronics sector.
PM’s recent announcement at the G20 Leaders’ Summit regarding the India-Middle East-Europe Economic Corridor signifies an ambitious project aimed at enhancing physical and digital connectivity across a vast expanse of the Eurasian subcontinent.
India-Middle East-Europe Economic Corridor
The India-Middle East-Europe Economic Corridor aims to establish connectivity across India, West Asia, and Europe, leveraging railway networks and shipping routes.
The project was jointly unveiled by PM Modi, US President Biden, Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud, and European Commission President Ursula von der Leyen during the G20 Summit in New Delhi.
Key Highlights of the project
Scope and Ideology: This initiative, championed by the US and India, encompasses connectivity and infrastructure spanning India, Saudi Arabia, the UAE, Jordan, Israel, and the European Union. It is hailed as a sustainable alternative to existing global connectivity initiatives.
Extension to PGII: Additionally, it is part of the broader Partnership for Global Infrastructure Investment (PGII), introduced by G7 countries to provide a sustainable alternative to BRI and address global infrastructure needs.
Congestion Mitigation: The corridor may potentially bypass the congested Suez Canal, offering a more efficient route for cargo ships.
Trade and Economic Integration: The Memorandum of Understanding (MoU) signed by India, the US, UAE, Saudi Arabia, France, Germany, Italy, and the European Union Commission underscores the project’s commitment to enhancing connectivity, logistics, clean energy production, and economic cooperation.
Historical Significance: European Commission chief Ursula von der Leyen described the corridor as “historic” and expressed enthusiasm about its potential.
Need for such project
Transformative Infrastructure: The project envisions a railway line across the Arabian Peninsula, with rail and shipping connectivity between India and Europe. Future expansions could include energy pipelines and optical fiber links.
Geopolitical Shifts: This initiative reflects emerging geopolitical trends, including India-US collaboration in the Middle East, breaking Pakistan’s veto, and evolving relations with Iran.
Deepening Arabian Engagement: The corridor provides an opportunity to strengthen India’s strategic ties with the Arabian Peninsula, notably with the United Arab Emirates and Saudi Arabia.
Historical Perspective: India’s historical role as a connector between Arabia and Europe is revitalized through this project.
Promoting Intra-regional Connectivity: The corridor aims to reduce tensions in the Arabian peninsula by fostering intra-regional connectivity, contributing to the concept of “Infrastructure for peace.”
Alternative to BRI: Positioned as an alternative to China’s BRI, the corridor’s success will depend on implementation speed and sustainability, both financial and ecological.
European Engagement: European Union’s involvement in the project makes it a major stakeholder, enhancing India’s integration with Arabia and Europe.
Trans-African Corridor: India’s growing engagement with Africa aligns with US and EU plans to create a Trans-African corridor, opening avenues for future collaboration.
Challenges and Uncertainties
Official timelines for project completion and details regarding funding remain undisclosed.
Clarity on the project’s alignment and the use of existing railway and port infrastructure in West Asia is awaited.
Global Implications
The initiative aligns with US-led efforts to scale the Partnership for Global Infrastructure Investment (PGII) and address infrastructure financing needs in low- and middle-income countries.
The project presents an alternative to China’s Belt and Road Initiative and could significantly strengthen connectivity between India and the Middle East.
