August 2024
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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

 An either-or approach won’t help quell food inflation 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Food inflation trend;

Mains level: Impact of food inflation;

Why in the News?

The recently released Consumer Price Index-Combined (CPI-C) data reveals that food inflation, particularly from pulses, vegetables, and cereals, is rising faster than the overall CPI inflation.

  • The Consumer Price Index-Combined (CPI-C) is the index used to calculate headline inflation in India. It is calculated and published monthly by the Bureau of Labor Statistics.

Key Highlights of the CPI-C Data:

  • On Current Inflation Rates: The general CPI inflation stands at 3.54%, while food inflation is notably higher at 5.06%, driven by increases in prices of pulses, vegetables, and cereals.
  • On Inflation Dynamics in the Past: Over the past decade, food inflation has contributed to the overall volatility of prices. In 52 of the 124 months analyzed, food inflation exceeded the general CPI rate, indicating a significant and fluctuating impact on overall inflation.
  • Expectations by the report: The RBI has highlighted that food inflation significantly influences inflationary expectations, which remain unanchored, often exceeding actual inflation rates.

(*Note: These data don’t include income taxes or investment items like stocks, bonds, and life insurance.)

Recently impact of good Monsoon on Food Production and Inflation: 

  • Increased Sowing Due to Robust Monsoon: India has reported a significant increase in the sowing of paddy and pulses, with paddy sowing up by 16% to 39 million hectares and pulses by 7% to 12 million hectares as of August 23, 2024, driven by a strong monsoon.
  • Potential Impact on Food Inflation: Despite concerns over rising food inflation, the expanded cultivation area for staple crops like rice and pulses could positively impact the agriculture sector and support government efforts to enhance farm productivity.

Present Situation of Inflation in the Agri-Food Sector

  • Volatility in Food Prices: Food inflation has been volatile, with instances of both high and low inflation. For example, food inflation was above 6% in 52 out of 124 months, while it was below 2% in 20 months, including periods of negative inflation.
  • Supply-Side Factors: The disparities between food and retail inflation can be attributed to supply-side issues such as monsoon variability, crop failures, and government policies like minimum support prices (MSPs). Excess demand for specific food categories, such as oils and fats, has also contributed to higher inflation.
  • Regional Disparities: Rural CPI inflation is higher (5.43%) compared to urban CPI (4.11%), reflecting the impact of agricultural conditions and market dynamics on rural households.

How Can the Gap Between Farmer and Consumer Be Reduced?

  • Market-Driven Pricing: The government should reconsider its intervention in agricultural markets through MSPs, allowing market forces to determine food prices. This could help reduce production distortions and improve price signals for farmers.
  • Enhancing Agricultural Productivity: Government expenditure should focus on increasing agricultural productivity through better technology and irrigation practices, which can lead to more stable food supplies and prices.
  • Reducing Middlemen: Implementing measures to eliminate middlemen in the supply chain can help narrow the gap between what farmers receive and what consumers pay.
  • Infrastructure Development: Improving infrastructure for storage and transportation can help reduce food wastage and ensure that food products reach consumers efficiently, further stabilizing prices.

Conclusion: Need to encourage the adoption of advanced agricultural technologies and sustainable farming practices to boost productivity and reduce the impact of supply-side disruptions, ensuring more consistent food supplies and stable prices.

Mains PYQ:

Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.  (UPSC IAS/2017)

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Coronavirus – Disease, Medical Sciences Involved & Preventive Measures

 Advancing equity, from COVID-19 to Mpox  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Monkeypox;

Mains level: Major Learnings from the COVID-19 Pandemic;

Why in the News?

The recent declaration of Mpox (formerly monkeypox) as a Public Health Emergency of International Concern (PHEIC) by the WHO highlights several critical lessons learned from the COVID-19 pandemic.

Major Learnings from the COVID-19 Pandemic

  • Vaccine Manufacturing Capabilities: The COVID-19 pandemic exposed significant gaps in vaccine manufacturing capabilities, particularly in the Global South. This inadequacy was exacerbated by limited technology transfers and a lack of know-how to produce vaccines developed in high-income countries.
    • The current response to the Mpox outbreak reflects similar challenges, emphasizing the need for robust local manufacturing capabilities to ensure equitable access to vaccines.
  • Global Cooperation: The pandemic underscored the necessity of international collaboration in health emergencies. The WHO’s declaration of Mpox as a PHEIC aims to foster this cooperation, encouraging countries and organizations to share information and resources to combat the outbreak.
  • Equity in Health Responses: The recent amendments to the International Health Regulations (IHR) include equity as a core principle, which is crucial for ensuring that all countries, particularly those in lower-middle-income regions, have access to essential medical products during emergencies.

Recent Initiatives by India’s Drug Regulatory Agency:

  • On August 7, 2024, India’s Central Drugs Standard Control Organization (CDSCO) decided that drugs already approved in developed countries like the U.S. and those in the EU can be used during pandemics in India without needing to go through clinical trials here.
  • This regulatory change is expected to expedite the availability of critical vaccines like MVA-BN (Jynneos) in India, facilitating faster access to vaccines necessary to combat the Mpox outbreak.

What could be the more improved solution for it?

  • Scaling Up Production: The demand for pox vaccines is anticipated to surge, with estimates by AfricaCDC, suggesting that 10 million doses are needed to control the outbreak. However, only 0.21 million doses are currently available.
    • Indian manufacturers, such as the Serum Institute of India and Bharat Biotech, have the potential to rapidly scale up production of the MVA-BN vaccine using established processes and supply chains.
  • Comprehensive Technology Transfer: Effective technology transfer involves sharing not only the vaccine but also the necessary biological resources, manufacturing know-how, and patents. This is essential to enable lower-middle-income countries to produce vaccines independently, reducing reliance on high-income countries.
  • Collaborative Negotiations: The Indian government, in collaboration with international organizations like WHO and Gavi, should negotiate with Bavarian Nordic for technology transfer to technology transfer for developing the vaccine.

Way forward: 

  • Strengthen Local Manufacturing: Encourage Indian manufacturers like the Serum Institute of India and Bharat Biotech to rapidly scale up production of the MVA-BN vaccine, ensuring timely and sufficient supply to meet both domestic and global demand during the mpox outbreak.
  • Facilitate Technology Transfer: The Indian government should lead collaborative efforts with international organizations to secure comprehensive technology transfers, enabling domestic production of vaccines and reducing dependency on high-income countries.

Mains PYQ:

Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic.  (UPSC IAS/2016)

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Global Geological And Climatic Events

Chile’s Atacama Salt Flat sinking due to Lithium Mining

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Salar de Atacama

Why in the News?

  • A recent study published in journal IEEE Transactions on Geoscience and Remote Sensing has found that Chile’s Atacama salt flat (Salar de Atacama) is sinking at a rate of 1 to 2 centimetres per year due to lithium brine extraction.
    • Lithium brine extraction involves pumping salt-rich water to the surface and letting it evaporate in ponds to collect lithium.

About Salar de Atacama  

  • The Salar de Atacama in Chile boasts the highest lithium concentration (0.15% by weight) among all brine sources worldwide.
  • Argentina boasts more than half of the world’s total lithium resources.
  • It holds the distinction of having the 2nd-largest lithium resources, the 3rd-largest lithium reserves, and the 4th-largest lithium production in the world.
  • It is a part of the Lithium Triangle comprising of Uyuni (Bolivia) and Hombre Muerto (Argentina).

Key Findings of the Study:

  • Researchers analyzed satellite data from 2020 to 2023 to observe deformations in the Earth’s crust in the salt flat.
  • The area experiencing subsidence measures approximately 8 km north to south and 5 km east to west.
  • The study indicates that subsidence occurs because the rate of lithium brine pumping is faster than the recharge rate of aquifers, leading to the ground sinking.

What is Lithium?

  • Lithium is an alkali metal, often referred to as ‘white gold’ due to its value and color.
  • It is a soft, silvery-white metal, and notably, it is the lightest metal on the periodic table.
  • It is typically found in various minerals like spodumene, petalite, and lepidolite, from which it is extracted and refined.
  • The leading producers of lithium are Australia, Chile, China, and Argentina.

Effects of Lithium Mining on Environment:

  • Water Use: Lithium mining, especially from salt flats and brine pools, requires substantial water usage, which can deplete local water resources in arid areas.
  • Ecological Disruption: The extraction process can alter the chemical balance of the natural environment, affecting local flora and fauna.
  • Pollution: Mining and processing lithium can release harmful chemicals into the environment, impacting air and water quality.

PYQ:

[2008] Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively?

(a) Lithium and mercury

(b) Lithium and osmium

(c) Aluminium and osmium

(d) Aluminium and mercury

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Civil Services Reforms

[pib] ANUBHAV AWARDS, 2024

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ANUBHAV AWARDS, 2024

Why in the News?

The Minister of State for Personnel, Public Grievances, and Pensions has conferred the Anubhav Awards 2024.

ANUBHAV Awards

Details
Purpose To recognize the contributions of retired officials to nation-building and document the administrative history of India through their written narratives.
Portal Launch Launched in March 2015.
Organizing Body Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare.
Objectives – Create a database of significant suggestions and work experiences.
– Utilize the experience of retiring employees for nation-building.
– Enable Ministries/Departments to consider useful and replicable suggestions.
Criteria Retiring Central Government employees and pensioners, who can submit their Anubhav write-ups 8 months prior to retirement and up to 1 year post-retirement.
Award Process Write-ups are assessed by the concerned Ministries/Departments, published, and then shortlisted for the Anubhav Awards and Jury Certificates.
Awards and Recognition ANUBHAV Awardees: Receive a medal, certificate, and a prize of ₹10,000.
Jury Certificate Winners: Receive a medal and a certificate.

 

PYQ:

[2021] Consider the following statements in respect of Bharat Ratna and Padma Awards :​

1. Bharat Ratna and Padma Awards are titles under the Article 18(1) of the Constitution of India.​

2. Padma Awards, which were instituted in the year 1954, were suspended only once.​

3. The number of Bharat Ratna Awards is restricted to a maximum of five in a particular year.​

Which of the above statements are not correct?​

(a) 1 and 2 only ​

(b) 2 and 3 only​

(c) 1 and 3 only ​

(d) 1, 2 and 3​

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Financial Inclusion in India and Its Challenges

[pib] 10 Years of Jan Dhan Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pradhan Mantri Jan Dhan Yojana (PMJDY)

Why in the News?

PM Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014.  It has now completed a decade of successful implementation.

About PMJDY

Details
Objective Banking the Unbanked: Open basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
Securing the Unsecured: Issue Indigenous Debit cards with free accident insurance coverage of ₹2 lakh.
Funding the Unfunded: Provide micro-insurance, overdraft, micro-pension, and micro-credit facilities.
Initial Features Universal Access to Banking Services: Access through branches and BCs.
Basic Savings Bank Accounts: With an overdraft facility of up to ₹10,000 for every eligible adult.
Financial Literacy Program: Promote savings and credit usage.
Insurance: Accident cover up to ₹1 lakh and life cover of ₹30,000 for accounts opened between Aug 2014 to Jan 2015.
Pension Scheme: For the unorganized sector.
Creation of Credit Guarantee Fund.
Key Provisions Inter-operability: Through RuPay debit card or Aadhaar-enabled Payment System (AePS).
• Fixed-point Business Correspondents.
• Simplified KYC / e-KYC.
Extension and New Features (Post-2018) Focus Shift: From ‘Every Household’ to ‘Every Unbanked Adult’.
RuPay Card Insurance: Increased accidental insurance cover to ₹2 lakh for new accounts.
Overdraft Facilities Enhanced: Limit doubled from ₹5,000 to ₹10,000; up to ₹2,000 without conditions.
Increase in upper age limit for OD: From 60 to 65 years.
Eligibility for Other Programs  PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).

Successes of PMJDY

  • Financial Inclusion: PMJDY is recognized as the largest financial inclusion initiative globally, with over 53 crore bank accounts opened as of August 2024. 
    • It has facilitated access to credit for individuals without a formal financial history, as evidenced by the rise in Mudra loan sanctions at a compounded annual rate of 9.8% from FY 2019 to FY 2024.
  • Social Empowerment: 55.6% of Jan Dhan account holders are women, and 66.6% of accounts are in rural and semi-urban areas, demonstrating the program’s reach among marginalized communities.
  • Deposit Growth: The total deposits in PMJDY accounts have reached Rs. 2.31 lakh crore, showing a 15-fold increase since August 2015.
  • Digital Transaction Growth: Digital transactions under PMJDY have surged, with UPI financial transactions growing from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
  • Effective DBT Mechanism: The Jan-Dhan Aadhaar Mobile (JAM) trinity has enabled a diversion-proof subsidy delivery mechanism, with subsidies and social benefits directly transferred into the bank accounts of the underprivileged.
  • Savings and Financial Discipline: The average deposit in the PMJDY account has increased 4 times since August 2015, indicating improved saving habits among account holders.

PYQ:

[2015] ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(a) Providing housing loan to poor people at cheaper interest rates.

(b) Promoting women’s Self-Help Groups in backward areas.

(c) Promoting financial inclusion in the country.

(d) Providing financial help to the marginalized communities.

[2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

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Judicial Pendency

Report reveals minimal use of Plea Bargaining in Courts

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Plea Bargaining

Why in the News?

According to a report by the Ministry of Law and Justice, only 0.11% of cases were settled through “plea bargaining” in 2022.

Key Findings of the Report:

  • In 2022, only 19,135 out of 1,70,52,367 cases (about 0.11%) in Indian courts were disposed of through plea bargaining, indicating its minimal use.
  • Despite legal restrictions, 119 cases of crimes against women and only 4 cases under the Protection of Children from Sexual Offences Act (POCSO) were resolved through plea bargaining in 2022, showing a deviation from the intended exclusions.

What is Plea Bargaining?

Details
Definition
  • Plea bargaining allows an accused person to negotiate with the prosecution for a lesser punishment by pleading guilty to a less serious offence. 
  • This involves pre-trial negotiations on the charge or the sentence.
Provision in India Introduced in 2006 as part of the Criminal Law (Amendment) Act, 2005 under Chapter XXI-A (Sections 265A to 265L).
• Limited to offences that do not attract the death sentence, life sentence, or a term above seven years.• Not applicable to offences affecting socio-economic conditions or committed against women or children under 14. (applies only to offences punishable by up to seven years of imprisonment)
Procedure in India Only the accused can initiate plea bargaining.
• The accused must apply to the court to start the process. If permitted, a meeting involving the prosecutor, investigating officer, and victim (if any) is held for a satisfactory case disposition.
• Includes possible reduced sentences and compensation payments to the victim by the accused.
Benefits Offered • Speeds up trials, reduces litigation costs and ends uncertainty over case outcomes.
• Helps reduce prison overcrowding and the number of prolonged imprisonments of undertrials.
• Offers a chance for offenders to make a fresh start.
• Could improve conviction rates, as seen in the USA.
• Recommended by the Malimath Committee (2000) for its potential to dramatically impact conviction rates and ensure a speedy trial.

 

PYQ:

[2021] With reference to India, consider the following statements:​

1. Judicial custody means an accused is in the custody of the concerned magistrate and such accused is locked up in police station, not in jail.​

2. During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.​

Which of the statements given above is/are correct?​

(a) 1 only ​

(b) 2 only​

(c) Both 1 and 2 ​

(d) Neither 1 nor 2​

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