Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gold monetisation scheme
Mains level: Paper 3- Gold demand in India
Context
Gold’s appeal as a safe haven is only rising: as tensions escalate in Ukraine, its price is approaching records.
Factors explaining demand for gold in India
- India is the world’s second-largest market for the yellow metal, behind China, though it produces almost none at home.
- This is partly driven by tradition.
- Brides are given jewellery as part of their dowry and it is deemed auspicious to buy bullion around certain religious festivals.
- It is a handy store of undeclared wealth, too, often stashed in wardrobes or under the mattress.
- But the pandemic has also affirmed an investment advice passed on over generations: park savings in gold as a rainy-day fund.
Concerns with such a high demand
- Vast gold imports can destabilise the economy.
- During the 2013 “taper tantrum”, when India’s foreign-exchange reserves were lower than they are now, a rush of gold imports helped push the current-account deficit to 4.8% of GDP and fuelled worries of a currency crisis.
- Savings stashed away as idle gold could be put to more productive use elsewhere.
- Indian households hold 22,500 tonnes of the physical metal—five times the stock in America’s bullion depository .
Policy measures by the government
- Import duties hover around 10%, even after cuts in last year’s budget aimed at keeping smuggling in check.
- The central bank has ramped up issuance of sovereign gold bonds, which are denominated in grams of gold.
- Of the 86 tonnes’ worth issued since 2015, about 60% were sold after the pandemic began.
- And the gold monetisation scheme, which allows households to hand gold over to a bank and earn interest, was revamped last year to reduce limits on the size of deposits.
- Lockdowns inadvertently helped the state’s agenda.
- Mobile payments platforms like PhonePe and Google Pay reported rising appetite for digital gold, which is sold online and stored by the seller.
- Money also rushed into gold exchange-traded funds (ETFs).
- Their assets hit 184bn rupees ($2.5bn) in December, a 30% rise in a year.
Conclusion
Still, only a sliver of the population, mostly well-off urban types and millennials, invest in complex financial products. A large part of India’s demand for physical gold comes from rural areas, where it seems in no danger of losing its lustre.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: EPR design
Mains level: Paper 3- Issues with the nuclear energy
Context
A fire broke out near the Zaporizhzhia nuclear plant in Ukraine (Europe’s largest) during the course of a military battle. Had the fire affected the cooling system, the plant’s power supply, or its spent fuel pool, a major disaster could have occurred.
Issues with India’s nuclear expansion plans
- On December 15, 2021, the Indian government informed Parliament that it plans to build “10 indigenous reactors… in fleet mode” and had granted “in principle approval” for 28 additional reactors, including 24 to be imported from France, the U.S. and Russia.
- Capital intensive: Nuclear power plants are capital intensive and recent nuclear builds have suffered major cost overruns.
- Decreasing cost of renewable: In contrast, renewable energy technologies have become cheaper.
- The Wall Street company, Lazard, estimated that the cost of electricity from solar photovoltaics and wind turbines in the U.S. declined by 90% and 72%, respectively, between 2009-21.
- Recent low bids are of ₹2.14 per unit for solar power, and ₹2.34 for solar-wind hybrid projects; even in projects coupled with storage, bids are around ₹4.30 per unit.
- Global trend suggests declining use of nuclear energy: In 1996, 17.5% of the world’s electricity came from nuclear power plants; by 2020, this figure had declined to just around 10%.
- Safety concerns: In a densely populated country such as India, land is at a premium and emergency health care is far from uniformly available.
- Local citizens understand that a nuclear disaster might leave large swathes of land uninhabitable — as in Chernobyl — or require a prohibitively expensive clean-up — as in Fukushima, where the final costs may eventually exceed $600 billion.
- Indemnity clause: Concerns about safety have been accentuated by the insistence of multinational nuclear suppliers that they be indemnified of liability for the consequence of any accident in India.
- India’s liability law already largely protects them.
- But the industry objects to the small window of opportunity available for the Indian government to hold them to account.
- Climate concerns: Climate change will increase the risk of nuclear reactor accidents.
- Recently, a wildfire approached the Hanul nuclear power plant in South Korea and President Moon Jae-in ordered “all-out efforts” to avoid an accident at the reactors there.
- In 2020, a windstorm caused the Duane Arnold nuclear plant in the U.S. to cease operations.
- The frequency of such extreme weather events is likely to increase in the future.
Consider the question “What are the concerns with the nuclear energy expansion plans of India? Suggest the way forward.”
Conclusion
Given the inherent vulnerabilities of nuclear reactors and their high costs, it would be best for the Government to unambiguously cancel its plans for a nuclear expansion.
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Back2Basics: What is EPR (nuclear reactor)
- The EPR is a third generation pressurised water reactor design.
- It has been designed and developed mainly by Framatome (part of Areva between 2001 and 2017) and Électricité de France (EDF) in France, and Siemens in Germany.
- In Europe this reactor design was called European Pressurised Reactor, and the internationalised name was Evolutionary Power Reactor, but it is now simply named EPR.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Electoral and non-electoral aspects of democracy
Context
The recently concluded assembly elections have some larger implications that we need to take note of. The consequences are not confined to the five states where the electoral battle was fought.
Undermining of non-electoral dimensions of democracy
- In much of the world, the electoral aspects of democracy are now being used to undermine the non-electoral dimensions of democracy.
- Today, such contradictions exist in Turkey, Poland, Hungary, Russia, to name just a few countries.
- A freely conducted vote can thus be used to cripple the other freedoms that modern democracies also value.
How electoral democracy can be a vehicle of assault on constitutional democracy
- The triumph of such politics can now be used in three ways — in executive decrees, in legislative chambers to formulate laws, and on the street via vigilante forces.
- Though minority rights are enshrined in India’s Constitution, election victories can now be used to create laws, or government policies that begin to attack precisely those rights.
- Role of judiciary: The courts are the final custodian of constitutional proprieties in a democracy and can frustrate a legislative or executive attack on the Constitution.
- But that depends on whether the judiciary is willing to play its constitutionally assigned role.
- Judicial interpretation can go either way – in favour of the government or against it.
Contradictory aspects of democracy from other parts of the world
- These contradictory aspects of democracy do have older roots.
- We can go all the way back to some tendencies that emerged in the democracy of America’s southern states in the 1880s, which lasted till the 1960s.
- America’s Blacks lost their equality as well as franchise, and the courts did not invalidate a majoritarian attack on their rights.
- The history of 1930s Germany is also viewed as an example of how democracy undermined democracy.
- As early as the 1950s, Sri Lanka imposed a “Sinhala only” policy on the Tamil minority of the country.
- In the 1980s, a civil war was born as a consequence.
- In Malaysia, following roughly similar policies, the Malay majority sidelined the Chinese minority.
- Internal tensions and aggravations rose but, unlike Sri Lanka, a civil war did not.
- The minorities pursued their interests by entering into coalitions with political parties within the larger parameters of the polity.
Consider the question “How the electoral aspect of the democracy can affect the non-electoral aspect of the democracy. What are the implications of such phenomenon for the democracy?”
Conclusion
This process can be called the battle between electoral democracy and constitutional democracy. Processes internal to the democratic system can severely weaken democracy itself, even causing its collapse.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Manual scavenging in India
Three laborers in Mumbai, allegedly hired for manual scavenging, died after inhaling toxic fumes in a septic tank.
What is Manual Scavenging?
- Manual scavenging is the practice of removing human excreta by hand from sewers or septic tanks.
- India banned the practice under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (PEMSR).
- The Act bans the use of any individual for manually cleaning, carrying, disposing of or otherwise handling in any manner, human excreta till its disposal.
- In 2013, the definition of manual scavengers was also broadened to include people employed to clean septic tanks, ditches, or railway tracks.
- The Act recognizes manual scavenging as a “dehumanizing practice,” and cites a need to “correct the historical injustice and indignity suffered by the manual scavengers.”
Why is it still prevalent in India?
- Low awareness: Manual scavenging is mostly done by the marginalized section of the society and they are generally not aware about their rights.
- Enforcement issues: The lack of enforcement of the Act and exploitation of unskilled labourers are the reasons why the practice is still prevalent in India.
- High cost of automated: The Mumbai civic body charges anywhere between Rs 20,000 and Rs 30,000 to clean septic tanks.
- Cheaper availability: The unskilled labourers, meanwhile, are much cheaper to hire and contractors illegally employ them at a daily wage of Rs 300-500.
- Caste dynamics: Caste hierarchy still exists and it reinforces the caste’s relation with occupation. Almost all the manual scavengers belong to lower castes.
Various policy initiatives
- Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2020: It proposes to completely mechanise sewer cleaning, introduce ways for ‘on-site’ protection and provide compensation to manual scavengers in case of sewer deaths.
- Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013: Superseding the 1993 Act, the 2013 Act goes beyond prohibitions on dry latrines, and outlaws all manual excrement cleaning of insanitary latrines, open drains, or pits.
- Rashtriya Garima Abhiyan: It started national wide march “Maila Mukti Yatra” for total eradication of manual scavenging from 30th November 2012 from Bhopal.
- Prevention of Atrocities Act: In 1989, the Prevention of Atrocities Act became an integrated guard for sanitation workers since majority of the manual scavengers belonged to the Scheduled Caste.
- Compensation: As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan vs Union of India case, a compensation of Rs 10 lakh is awarded to the victims family.
Way forward
- Regular surveys and social audits must be conducted against the involvement of manual scavengers by public and local authorities.
- There must be proper identification and capacity building of manual scavengers for alternate sources of livelihood.
- Creating awareness about the legal protection of manual scavengers is necessary.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Biological and Toxin Weapons Convention (BTWC)
Mains level: Not Much
India has emphasized on following the Biological and Toxin Weapons Convention (BTWC) at the UNSC meeting on Ukraine.
Why in news?
- The meeting came after a request from Russia, who claimed that the US is involved in bioweapon manufacture in war-torn Ukraine.
- However, Washington has strongly dismissed this claim.
What is BTWC?
- The Biological and Toxin Weapons Convention (BTWC) was the first multilateral treaty categorically banning a class of weapon.
- It is a treaty that came into force in 1975 and prohibits the development, production, acquisition, transfer, stockpiling and use of biological weapons.
- A total of 183 countries are party to the treaty that outlaws bioweapons, including US, Russia and Ukraine.
Obligations of the treaty
- The treaty prohibits the development, stockpile, production, or transfer of biological agents and toxins of “types and quantities” that have no justification for protective or peaceful use.
- Furthermore, the treaty bans the development of weapons, equipment, or delivery systems to disseminate such agents or toxins.
- Should a state possess any agent, toxin, or delivery system for them, they have nine months from entry into force of the treaty to destroy their stockpiles, or divert them for peaceful use.
- The convention stipulates that states shall cooperate bilaterally or multilaterally to solve compliance issues.
- States may also submit complaints to the UNSCR should they believe another state is violating the treaty.
Issues with the treaty
- There is no implementation body of the BTWC, allowing for blatant violations as seen in the past.
- There is only a review conference that too every five years to review the convention’s implementation, and establish confidence-building measures.
Signatories to the BTWC
- The Convention currently has 183 states-parties, including Palestine, and four signatories (Egypt, Haiti, Somalia, and Syria).
- Ten states have neither signed nor ratified the BWC: Chad, Comoros, Djibouti, Eritrea, Israel, Kiribati, Micronesia, Namibia, South Sudan, and Tuvalu.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: BrahMos Missile
Mains level: Not Much
India has acknowledged a malfunction led to accidental firing of a missile, which Pakistan says landed in its territory.
Conducting Missile Tests: NOTAM and NAVAREA Warnings
- Under the pre-notification of flight testing of ballistic missiles agreement signed in 2005, a country must provide the other an advance notification on flight test it intends to take for any land or sea launched, surface-to-surface ballistic missile.
- Before the test, the country must issue Notice to Air Missions (NOTAM) or Navigational Warning (NAVAREA) to alert aviation pilots and seafarers, respectively.
- Also, the testing country must ensure that the launch site is not within 40 km, and the planned impact area is not within 75 km of either the International Boundary (IB) or the Line of Control (LoC).
- The planned trajectory should not cross the IB or the LoC and must maintain a horizontal distance of at least 40 km from the border.
Pre-notifications to the neighbours
- The testing country must notify the other nation “no less than three days in advance of the commencement of a five day launch window within which it intends to undertake flight tests.
- The pre-notification has to be conveyed through the respective Foreign Offices and the High Commissions, as per the format annexed to this Agreement.
What is the recent case of misfire?
- Neither country has spelt this out; Pakistan has only called it a “supersonic” missile.
- Some experts have speculated that it was a test of one of India’s top missiles, BrahMos, jointly developed with Russia.
- Their assessment is based on information that it travelled 200 km, manoeuvred mid-air and travelled at 2.5 times to 3 times the speed of sound at an altitude of 40,000 feet.
| Note: BrahMos has a top speed of Mach 3, a range of around 290 km, and a cruising altitude of 15 km (around 50,000 feet). It can be fired from anywhere, is nuclear-capable, and can carry warheads of 200-300 kg. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sohrai Murals
Mains level: NA
Santhali communities of Odisha and Jharkhand are changing their ways of painting traditional Sohrai murals to modernity.
What is Sohrai?
- Sohrai is a harvest festival of the Indian states of Bihar, Jharkhand, Chhattisgarh, Odisha, and West Bengal.
- It also called cattle festival. It is celebrated after harvest and coincide with festival of Diwali.
What are Sohrai Murals?
- Sohrai Mural is an indigenous art form is practised by the women of Santhal Community.
- Ritualistic art is done on mud walls to welcome the harvest and to celebrate the cattle.
- The women clean their houses and decorate their walls with murals of Sohrai arts.
- This art form has continued since 10,000-4,000 BC. It was prevalent mostly in caves, but shifted to houses with mud walls.
Features of this art
- This Sohrai art form can be monochromatic or colorful.
- The people coat the wall with a layer of white mud, and while the layer is still wet, they draw with their fingertips on it.
- Their designs range from flowers and fruits to various other nature-inspired designs.
- The cow dung that was earlier used to cake the walls of the house is used to add colour.
- The dark outline is visible due to the previously applied contrasting white mud coat.
- The artists are spontaneous in their drawing. The designs are usually drawn from the artist’s memory.
- The personal experience of the artist and their interaction with nature are the biggest influence.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India's export
Mains level: Paper 3- Taking stock of Indian economy
Context
This article takes the stock of the Indian economy using the EFGHIJ framework.
Export
- The $400-billion target of goods exports in FY22 appears achievable:
- This is a structural break from ~$300-330 billion per year over the last decade.
- Note that in calendar year 2021, India exported almost $400 billion worth of goods.
- This export growth comes at a time when global shipping and freight markets have been in a tizzy over the last few months as Covid-related supply chain disruptions across commodities and final products reverberated across the globe.
Fiscal growth
- India has significant fiscal headroom in FY23 with a 6.4% fiscal deficit pencilled in.
- The revenue buoyancy, assumed at less than 1, is conservative as is the overall assumption on nominal growth at 11%.
- In as volatile a world as this, the conservatism in forecasting should come to India’s advantage.
- India saw healthy direct and indirect tax receipts in FY22: the GST collections have consistently remained above the `1 trillion-a-month mark for many months now.
- Two aspects need a close watch:
- (a) as the prices of various commodities rise, there can be calls for softening the blow on the final consumer via tax cuts or direct support, and
- (b) the disinvestment programme of the government which could face a market where investor appetite is uncertain.
Growth challenges and opportunities for India
- India’s GDP growth in FY23 is projected to be 7.6-8.5%, making it one of the fastest-growing economies.
- With the newly changed circumstances, it is possible that this tight range and the absolute number may require revision.
- It is, however, too early to say in which direction and by what amounts.
- Opportunities for India: Global dislocations of supply chain or the creation of new supply sources could create divergent challenges and opportunities for India.
- The post Covid rebound in high frequency indicators (air and rail passengers, toll collections, UPI payments, etc.) suggests that the internal consumption economy is currently back on track.
- It is important to note that India continues to be the fastest-growing nation of its size in the world.
Health
- India has now completed almost 1.8 billion doses.
- The Omicron wave, thankfully both due to the inherent nature of the virus and the large vaccination drive, did not cause significant economic upheaval.
- It may be time to think of Covid as endemic and plan accordingly.
Inflation
- The inflation in 2021 was based on a sudden bout of fiscal-support-driven spending meeting with tight supply chain bottlenecks.
- It was expected that as spending normalises and supply chains open, prices will stabilise.
- However, the sharp uptick in the prices of crude, coal, commodities, and chips has created a more sustained scare for inflation.
- Many measures may be taken across the world to curb the impact for the common man: from opening of oil reserves, to cutting of taxes, to direct support, etc—all of which could impact the fiscal.
Capital
- Denoted by K by economists, expect to see a lot of ebb-and-flow here as investors react to evolving, volatile trends.
- Higher public investment in the last two years has supported economic recovery: India has planned for a record `10 lakh crore plus public capex.
- Net FDI has been strong at $25.3 billion up to December in FY2022.
- While FPIs have withdrawn $9.5 billion in FY22, DIIs and retail investors have supported the markets.
Conclusion
With two waves of COVID-19 largely behind us, many macroeconomic factors have changed dramatically, especially in the last fortnight.
Source:
https://www.financialexpress.com/opinion/efghijk-taking-stock-of-the-indian-economy/2457255/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Unicorns
Mains level: Paper 3- Start-ups in India
Context
As per the Economic Survey 2021-22, India has become the third-largest startup ecosystem in the world after the US and China.
Start-up ecosystem in India
- India attracted huge investment in startups in 2021: Private equity investment was $77 billion, of which $42 billion went to early-stage ventures.
- Every startup where salaries are paid by investors rather than customers is breathlessly rethinking business plans.
How do startups benefit society?
1] Innovation, productivity and job creation:
- The high failure rate of startups is not a problem per se — society only needs a few successes to harness the gains of innovation, productivity and job creation.
- A new book, The Power Law makes the case that startup investing is unlike public market investing.
- He suggests public markets follow a “normal” distribution like human height — most people cluster around the average with a few exceptionally low or high.
- But venture investments follow a “power law” of distribution, that is, most go to zero but the tiny number that succeeds more than compensate for the losses or mediocrity of the many.
2] Losses caused by startups are not passed on to society
- Startups don’t socialise their losses, Corporate bank loans expanded from Rs 18 lakh crore in 2008 to Rs 54 lakh crore in 2014.
- Such high corporate bank loans created bad loans that needed many lakh crores of government money to recapitalise nationalised banks.
- This money was diverted from government spending on healthcare, education and defence.
- The current venture capital binge will also create many write-offs but this cost will fall on consenting adults with broad shoulders — foreign institutions, angel investors and entrepreneurs with successful previous exits.
3] Startups will solve real problems for Indians:
- Ending our poverty needs higher productivity regions, cities, sectors, firms and individuals.
- A modern state is a welfare state that does less commercially so it can do more socially.
- It needs allies in reimagining financial inclusion, supply chains, distribution logistics, employability, retail, transport, media, healthcare, agriculture and much else.
- Many of our startups shall redeem their pledge to solve these problems “not wholly or in full measure, but very substantially”.
Three issues related to startups
- 1] Fiscal and monetary policy normalisation: The global capital supply fuelling startup funding faces challenges from fiscal and monetary policy normalisation: The rate-sensitive two-year US government bond recently touched a 1.6 per cent yield after being at 0.4 per cent as recently as November — because the risk-free return cannot be return-free-risk forever.
- Investors are returning to weighing financial sustainability and capital efficiency along with addressable markets.
- 2] Excesses: This explosive startup funding has created excesses.
- 3] A different approach of public markets: Private markets are not only delaying IPOs — Amazon went public within three years of starting with less than half the value of a unicorn — but unicorn IPOs’ underperformance suggests that public markets have a different calibration.
Conclusion
The few startups that survive will raise India’s soft power and prosperity by using improbable ideas to solve impossible problems. What we need is to ensure the policy environment for the startups to boom.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Environmental Change (GEC) programme
Mains level: Paper 2- Water management
Context
The Global Water System Project, which was launched in 2003 as a joint initiative of the Earth System Science Partnership (ESSP) and Global Environmental Change (GEC) programme, epitomises global concern about the human-induced transformation of fresh water and its impact on the earth system and society.
Valuation of water
- It is globally estimated that the gap between demand for and supply of fresh water may reach up to 40% by 2030 if present practices continue.
- SDG 6: The formation of the 2030 Water Resource Group in 2008, at the instance of the World Economic Forum, and the World Bank’s promotion of the group’s activity since 2018, is in recognition of this problem and to help achieve the Sustainable Development Goal (SDG) on water availability and sanitation for all by 2030 (SDG 6).
- The latest UN World Water Development Report, 2021, titled ‘Valuing Water’, has laid stress on the proper valuation of water by considering five interrelated perspectives: water sources; water infrastructure; water services; water as an input to production and socio-economic development, and socio-cultural values of water.
Need for hydro-social cycle approach
- Designing a comprehensive mix of divergent views about water along with ecological and environmental issues held by stakeholder groups is necessary.
- In this context, a hydro-social cycle approach provides an appropriate framework.
- It repositions the natural hydrological cycle in a human-nature interactive structure and considers water and society as part of a historical and relational-dialectical process.
- The anthropogenic factors directly influencing a freshwater system are the engineering of river channels, irrigation and other consumptive use of water, widespread land use/land cover change, change in an aquatic habitat, and point and non-point source pollution affecting water quality.
The intra- and inter-basin transfer (IBT) of water
- IBT is a major hydrological intervention to rectify the imbalance in water availability due to naturally prevailing unequal distribution of water resources within a given territory.
- There are several IBT initiatives across the world.
- The National River Linking Project of India is one of those under construction.
- Based on a multi-country case study analysis, the World Wildlife Fund/World Wide Fund for Nature (2009) has suggested a cautious approach and the necessity to adhere to sustainability principles set out by the World Commission on Dams while taking up IBT projects.
Issues with assumptions, use and management of freshwater resources in India
1] Contestation on concept of the surplus and deficit basin
- The basic premise of IBT is to export water from the surplus basin to a deficit basin.
- However, there is contestation on the concept of the surplus and deficit basin itself as the exercise is substantially hydrological.
- Besides this, rainfall in many surplus basins has been reported as declining.
- The status of the surplus basin may alter if these issues are considered.
2] Low capacity utilisation
- There is concern about the present capacity utilisation of water resources created in the country.
- By 2016, India created an irrigation potential for 112 million hectares, but the gross irrigated area was 93 million hectares.
- There is a 19% gap, which is more in the case of canal irrigation.
- In 1950-51, canal irrigation used to contribute 40% of net irrigated area, but by 2014-15, the net irrigated area under canal irrigation came down to less than 24%.
- Groundwater irrigation now covers 62.8% of net irrigated area.
- Low efficiency of irrigation projects: The average water use efficiency of irrigation projects in India is only 38% against 50%-60% in the case of developed countries.
- More water consumption for crops: Even at the crop level we consume more water than the global average.
- Rice and wheat, the two principal crops accounting for more than 75% of agricultural production use 2,850 m 3/tonnes and 1,654 m 3/tonnes of water, respectively, against the global average of 2,291m 3/tonnes and 1,334m 3/ tonnes in the same order.
- The agriculture sector uses a little over 90% of total water use in India.
- And in industrial plants, consumption is 2 times to 3.5 times higher per unit of production of similar plants in other countries.
- Similarly, the domestic sector experiences a 30% to 40% loss of water due to leakage.
3] Low use of greywater
- Grey water is hardly used in our country.
- It is estimated that 55% to 75% of domestic water use turns into greywater depending on its nature of use, people’s habits, climatic conditions, etc.
- At present, the average water consumption in the domestic sector in urban areas is 135 litres to 196 litres a head a day.
- If grey water production in the rural areas is considered it will be a huge amount.
- The discharge of untreated grey water and industrial effluents into freshwater bodies is cause for concern.
- The situation will be further complicated if groundwater is affected.
4] Other issues
- Apart from the inefficient use of water in all sectors, there is also a reduction in natural storage capacity and deterioration in catchment efficiency.
Way forward
- The issues are source sustainability, renovation and maintenance of traditional water harvesting structures, grey water management infrastructure, groundwater recharge, increasing water use efficiency, and reuse of water.
- The axiom that today’s water system is co-evolving and the challenges are mainly management and governance has been globally well accepted.
- It is important to include less predictable variables, revise binary ways of thinking of ‘either or’, and involve non-state actors in decision-making processes.
Conclusion
A hybrid water management system is necessary, where along with professionals and policy makers the individual, a community and society have definite roles in the value chain. The challenge is not to be techno-centric but anthropogenic.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Inland Waterways
Mains level: Innlad water transit and its significance
- Month after setting sail on the Ganga from Patna, a vessel carrying 200 metric tonnes of food grains for the Food Corporation of India (FCI), docked at Guwahati’s Pandu port on the southern bank of the Brahmaputra.
- The occasion is believed to have taken inland water transport, on two of India’s largest river systems, to the future.
Why is a Ganga-Brahmaputra cargo vessel in focus?
- There is nothing unusual about a cargo vessel setting sail from or docking at any river port.
- This has rekindled hope for the inland water transport system which the landlocked northeast depended on heavily before India’s independence in 1947.
Inland water service: A necessity for the NE
- Seamless cargo transportation has been a necessity for the northeast.
- Around Independence, Assam’s per capita income was the highest in the country.
- This was primarily because of access for its tea, timber, coal and oil industries to seaports on the Bay of Bengal via the Brahmaputra and the Barak River (southern Assam) systems.
- Ferry services continued sporadically after 1947 but stopped after the 1965 war with Pakistan, as Bangladesh used to be East Pakistan then.
- The scenario changed after the river routes were cut off and rail and road through the “Chicken’s Neck”, a narrow strip in West Bengal, became costlier alternatives.
- The start of cargo movement through the Indo-Bangladesh Protocol (IBP) route is going to provide the business community a viable, economic and ecological alternative.
How did the water cargo service through Bangladesh come about?
- The resumption of cargo transport service through the waterways in Bangladesh has come at a cost since the Protocol on Inland Water Transit and Trade was signed between the two countries.
- India has invested 80% of ₹305.84 crore to improve the navigability of the two stretches of the IBP (Indo-Bangladesh Protocol) routes — Sirajganj-Daikhowa and Ashuganj-Zakiganj in Bangladesh.
- The seven-year dredging project on these two stretches till 2026 is expected to yield seamless navigation to the north-eastern region.
- With this, the distance between NW1 and NW2 will reduce by almost 1,000 km once the IBP routes are cleared for navigation.
Policy boosts to IWs
- The Government has undertaken the Jal Marg Vikas project with an investment of ₹4,600-crore to augment the capacity of NW1 for sustainable movement of vessels weighing up to 2,000 tonnes.
- Sailors who made the cargo trips possible have had difficulties steering clear of fishing nets and angry fishermen in Bangladesh.
- These hiccups will get sorted out with time.
Why go for IWT?
- Inland Water Transport (IWT) is a fuel-efficient, environment friendly and cost effective mode of transport having potential to supplement the over-burdened rail and congested roads.
- It is a boon where road transport is least feasible.
Back2Basics: Inland Waterways
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UPI123Pay
Mains level: UPI payments through feature phones
The Reserve Bank of India has launched a new Unified Payments Interface (UPI) payments solution for feature phone users dubbed ‘UPI123Pay’.
What is UPI?
- UPI is an instant real-time payment system developed by NPCI facilitating inter-bank transactions.
- The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
What is UPI123Pay?
- UPI ‘123PAY’ is a three-step method to initiate and execute services for users which will work on simple phones.
- It will allow customers to use feature phones for almost all transactions except scan and pay.
- It doesn’t need an internet connection for transactions. Customers have to link their bank account with feature phones to use this facility.
- Feature phone users will now be able to undertake a host of transactions based on four technology alternatives.
- They include calling an IVR (interactive voice response) number, app functionality in feature phones, missed call-based approach and also proximity sound-based payments, the RBI said.
- Such users can initiate payments to friends and family, pay utility bills, recharge the FAST Tags of their vehicles, pay mobile bills and also allow users to check account balances.
- Customers will also be able to link bank accounts, set or change UPI PINs.
Others: ‘Digisaathi’
- A 24×7 helpline for digital payments has also been set up by the National Payments Corporation of India (NPCI).
- The helpline christened ‘Digisaathi’ will assist the callers/users with all their queries on digital payments via website and chatbot.
- Users can visit www.digisaathi.info or call on 14431 and 1800 891 3333 from their phones for their queries on digital payments and grievances.
Why UPI123Pay was created?
- UPI, which was introduced in 2016, has become one of the most used digital payments platforms in the country.
- The volume of UPI transactions has already reached ₹76 lakh crore in the current year, compared to ₹41 lakh crore in FY21.
- However, at present, efficient access to UPI is available largely via smartphones.
How will users make payments without internet?
The new UPI payments system offers users four options to make payments without internet connectivity:
- Interactive Voice Response (IVR): Users would be required to initiate a secured call from their feature phones to a predetermined IVR number and complete UPI on-boarding formalities to be able to start making financial transactions like money transfer, mobile recharge, EMI repayment, balance check, among others.
- App-based functionality: One could also install an app on feature phone through which several UPI functions, available on smartphones, will be available on their feature phone, except scan and pay feature which is currently not available.
- Missed call facility: The missed call facility will allow users to access their bank account and perform routine transactions such as receiving, transferring funds, regular purchases, bill payments, etc., by giving a missed call on the number displayed at the merchant outlet. The customer will receive an incoming call to authenticate the transaction by entering UPI PIN.
- Proximity sound-based payments: One could utilise the proximity sound-based payments option, which uses sound waves to enable contactless, offline, and proximity data communication on any device.
How do UPI payments through sound work?
- UPI payments using sound isn’t new. When Google Pay was first launched in 2017 as Tez, the app had a sound-based system of payments built in.
- Google called this ‘Cash Mode’ in which phones would emit ultrasonic sounds that could be used by other Tez users to accept and receive money.
- It’s somewhat like Bluetooth but instead of using radio waves, it uses sound waves to transfer data from one device to the next.
- A company called ToneTag also produces audio-based point-of-sale machines.
Is payment through sound secure?
- Sound wave-based payments are meant to be contactless, but occur within a certain proximity only.
- Ultrasonic waves are outside the usual human hearing range, but such payment systems can also use audible sounds, something that US-based startup Chirp showcased back in 2011.
- Devices using such systems are encrypted, and only the devices involved can recognize the emitted waves.
- The sound waves being emitted are encrypted, meaning the receiving device will need to have decryption codes to complete the transaction.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Land Monetisation Corporation (NLMC)
Mains level: Asset Monetization
The Union Cabinet has approved the setting up of a new government-owned firm National Land Monetisation Corporation (NLMC) for pooling and monetizing sovereign and public sector land assets.
What is NLMC?
- The National Land Monetisation Corporation (NLMC) is being formed with an initial authorised share capital of ₹5,000 crore and paid-up capital of ₹150 crore.
- The government will appoint a chairman to head the NLMC through a “merit-based selection process” and hire private sector professionals with expertise.
- The NLMC will undertake monetization of surplus land and building assets of Central public sector enterprises (CPSEs) as well as government agencies.
How will it function?
- NLMC will own, hold, manage and monetise surplus land and building assets of CPSEs under closure and surplus non-core land assets of Government-owned CPSEs under strategic disinvestment.
- This will speed up the closure process of CPSEs and smoothen the strategic disinvestment process of Government-owned CPSEs, the statement said.
- NLMC will undertake surplus land asset monetisation as an agency function, and assist and provide technical advice to the Centre in this regard.
- The NLMC board will comprise senior Government officers and eminent experts, while its chairman and non-Government directors will be appointed through a merit-based selection process, the statement said.
- The Corporation will have minimal full-time staff, hired directly from the market on a contract basis.
Stipulated tasks
- CPSEs have referred around 3,400 acres of land and other non-core assets to the Department of Investment and Public Asset Management (DIPAM) for monetisation.
- Monetisation of non-core assets of MTNL, BSNL, BPCL, BEML, HMT, is currently at various stages of the transaction, as per latest data in the Economic Survey 2021-22.
Significance of NLMC
- The government would be able to generate substantial revenues by monetizing unused and under-used assets.
- The new corporation will also help carry out monetization of assets belonging to public sector firms that have closed or are lined up for a strategic sale.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 19
Mains level: Paper 2- Issues with the sealed cover jurisprudence
Context
A Division Bench of the Kerala High Court has dismissed the appeal filed by a television channel. The trouble emanating from the judgment is that the state need not even show that its security is threatened. It can conveniently choose the ‘sealed cover’ route.
Background of the case
- The Ministry had said that the licence could not be renewed for reasons related to national security.
- The stand of the Government was endorsed by both the Single and Division Benches of the High Court.
- In the judgment of March 2, the Division Bench said: “It is true that the nature, impact, gravity and depth of the issue is not discernible from the files.
- Still, the Bench chose to dismiss the appeals by bluntly saying that “there are clear and significant indications impacting the public order and security of the state”.
- All that is necessary to ban a news broadcaster are these ‘indications’ — which are never revealed to the broadcaster.
Issues with the judgement
1] Violation of the fundamental rights
- A whole set of rights are directly hit by the ban. The first is the right to freedom of speech and expression of the television channel.
- The rights to association, occupation and business are also impacted.
- Moreover, the viewers also have a right to receive ideas and information.
- All these rights are altogether suspended by the executive. The only contingency in which these rights under Article 19(1) can be interfered with are reasonable restrictions under Article 19(2).
- The judgment creates a situation that endorses the breach of fundamental rights on the one hand, and blocks remedy for the victim through a court of law and a process known to law on the other hand.
2] Takes away the power of judicial review
- India’s Constitution does not give a free hand to the executive to pass arbitrary orders violating such rights.
- Basic feature of the Constitution: The Supreme Court of India has repeatedly held that judicial review of executive action is the basic feature of the Constitution.
- The decisions in Minerva Mills vs Union of India (1980) and L. Chandra Kumar vs Union of India (1997) reiterated this fundamental principle.
- Test of reasonable restriction: If the executive wishes to limit rights — in this case, censor or restrict speech — it must show that the test of reasonable restrictions is satisfied.
- The ‘sealed cover’ practice inverses this position.
3] Lack of examination of national security ground
- There was no examination of the national security plea based on the proportionality analysis, well established in our recent jurisprudence.
- Also, when a three-judge Bench in the Pegasus case ( Manohar Lal Sharma vs Union of India, 2021) has categorically held that the state does not get a “free pass every time the spectre of ‘national security’ is raised”.
Proportionality analysis
- In Modern Dental College vs State of Madhya Pradesh (2016), the top court adopted the proportionality test “a limitation of a constitutional right will be constitutionally permissible if:
- (i) it is designated for a proper purpose
- (ii) the measures undertaken to effectuate such a limitation are rationally connected to the fulfillment of that purpose;
- (iii) the measures undertaken are necessary in that there are no alternative measures that may similarly achieve that same purpose with a lesser degree of limitation; and finally
- (iv) there needs to be a proper relation (‘proportionality stricto sensu’ or ‘balancing’) between the importance of achieving the proper purpose and the social importance of preventing the limitation on the constitutional right”.
- This was reiterated in K.S. Puttaswamy vs Union of India (2017).
Conclusion
The MediaOne case might create a real problem area that needs resolution by the Supreme Court.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST Council
Mains level: Paper 2- Use of taxation to discourage tobacco use
Context
Tobacco is a silent killer in our midst that kills an estimated 1.35 million Indians every year.
The harm caused by tobacco
- It is the use of tobacco as a result of which more than 3,500 Indians die every single day, as estimated by scientific studies.
- It also comes at a heavy cost: an annual economic burden of ₹1,77,340 crore to the country or more than 1% of India’s Gross Domestic Product (GDP).
How price and taxation of tobacco matters
- Research from many countries around the world including India shows that a price increase induces people to quit or reduce tobacco use as well as discourages non-users from getting into the habit of tobacco use.
- There is overwhelming consensus within the research community that taxation is one of the most cost-effective measures to reduce demand for tobacco products.
- There has been no significant tax increase on any tobacco product for four years in a row.
- This is quite unlike the pre-GST years where the Union government and many State governments used to effect regular tax increases on tobacco products.
- As peer-reviewed studies show, the lack of tax increase over these years has made all tobacco products increasingly more affordable.
- The absence of a tax increase on tobacco has the potential to reverse the reduction in tobacco use prevalence that India saw during the last decade and now push more people into harm’s way.
- It would also mean foregone tax revenues for the Government.
Way forward
- The Union Budget exercise is not the only opportunity to initiate a tax increase on tobacco products.
- The Goods and Services Tax (GST) Council could well raise either the GST rate or the compensation cess levied on tobacco products especially when the Government is looking to rationalise GST rates and increase them for certain items.
- For example, there is absolutely no public health rationale why a very harmful product such as the bidi does not have a cess levied on it under the GST while all other tobacco products attract a cess.
- GST Council meetings must strive to keep public health ahead of the interests of the tobacco industry and significantly increase either the GST rates or the GST compensation cess rates applied on all tobacco products.
Conclusion
The aim should be to arrest the increasing affordability of tobacco products in India and also rationalise tobacco taxation under the GST.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Small Savings Schemes
Mains level: Paper 3- Managing economic uncertainties due to crisis
Context
Amid Ukraine crisis and high oil prices, the larger concern is how the government and the RBI will navigate this period at a time of record government borrowings, and prevent domestic interest rates from hardening.
The Triffin paradox in current context
- It is ironic that even as emerging economies running current account deficits are getting punished by a depreciating currency and a hardening of interest rates, we are witnessing the US dollar appreciating and US treasuries strengthening.
- The most common argument for such a macroeconomic paradox is named after the economist Robert Triffin (the Triffin Paradox).
- It postulates that the US current account deficit is purely a reflection of the US supplying large amounts of dollars to fulfil the world’s demand.
- In other words, central banks across the world must build up claims on the US to back their domestic money growth.
Dollar’s dominance
- Former US Federal Reserve Chairman Bernanke even extended this argument in 2005 to the “saving glut” proposition by espousing that emerging economies were accumulating foreign exchange reserves in dollars, and diverting domestic savings to buy US treasuries.
- There are several counter arguments to this view that effectively state that the dominance of the US dollar is inevitable in the global financial architecture, and it is purely a fault of emerging market economies.
Need for the unconventional tools to avoid the disruption by government borrowing
This can be done in the following ways
1] Spread the borrowing over four quarters after taking real-time view of disruption
- Every year, the government front-loads its large borrowing programme by completing 60 per cent of the borrowings in the first half of the year.
- This time, the RBI and the government may take a real-time view of disruptions and spread the borrowings over four quarters, keeping the initial two quarters light.
- The borrowing programme can also be announced as per a quarterly schedule and there could be even two auctions during the week.
- These steps could smoothen out the non-disruptive elements in government borrowings.
2] Reconfigure the borrowing program
- For example, as rates move up, banks tend to prefer short-term investments while insurance companies, provident funds and others prefer longer-term investments.
- Given this, the borrowing schedule can be reconfigured with a higher proportion of short-and medium-tenor securities being offered in the initial months, while pushing back the longer tenor securities to the second half of the year.
3] Push Small Savings Schemes
- Third, small savings collections have significantly exceeded budget estimates.
- The government could think of giving a push to small savings schemes such as the Sukanya Samriddhi Yojana (SSY).
- The SSY has witnessed the registration of 2.82 crore girl children in the seven years since its inception in 2015, leaving enough room for further mop-up.
- The newly opened accounts may even be given an enhanced savings limit in the first year to catch up for the years lost for these new additions.
4] Listing of LIC
- LIC currently holds around Rs 23.5 trillion worth of government bonds, higher than even than the RBI.
- LIC’s G-sec holding is around 19 per cent, while in comparison the banking system’s ownership stands at around 38 per cent.
- Thus LIC’s listing should augur well for the bond market as the insurance behemoth may have to deploy a greater share of inflows in safer avenues domestically.
- This is a plausible option as banks may have to readjust their deposits into credit as the economic recovery gains momentum.
Conclusion
Rising oil prices have placed policymakers in an unenviable position. If higher oil prices are fully passed through, it will result in higher inflation and hence higher rates as a consequence. In such a scenario it is best to follow the first option by using unconventional policy measures.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MVA, BBIN
Mains level: BBIN and its significance
With Bhutan continuing to sit out the Motor Vehicles Agreement (MVA) of the sub-regional Bangladesh-Bhutan-India-Nepal (BBIN) grouping, a meeting of the other three countries was held to discuss the next steps in operationalizing the agreement for the free flow of goods and people between them.
What is Motor Vehicles Agreement (MVA)?
- India, Nepal, Bhutan and Bangladesh signed a Motor Vehicles Agreement (MVA) for the Regulation of Passenger, Personal and Cargo Vehicular Traffic among the four South Asian neighbours.
- It was signed on 15 June 2015 at the BBIN transport ministers meeting in Thimpu, Bhutan.
- The act will facilitate a way for a seamless movement of people and goods across their borders for the benefit and integration of the region and its economic development.
Key terms of the Agreement
- Trans-shipment of goods: Cargo vehicles will be able to enter any of the four nations without the need for trans-shipment of goods from one country’s truck to another’s at the border.
- Free transport: The agreement would permit the member states to ply their vehicles in each other’s territory for transportation of cargo and passengers, including third-country transport and personal vehicles.
- Electronic permit: As per the agreement each vehicle would require an electronic permit to enter another country’s territory, and border security arrangements between nations’ borders will also remain.
- Ultra-security: Vehicles are fitted with an electronic seal that alerts regulators every time the container door is opened.
Implementation status of the agreement
- The agreement will enter into force after it is ratified by all four member nations.
- The agreement has been ratified by Bangladesh, India and Nepal.
- The lower house of the Bhutanese parliament approved the agreement in early 2016, but it was rejected by the upper house in November 2016.
- Bhutan has requested for a cap to be fixed on the number of vehicles entering its territory
What next?
- India remains “hopeful” that Bhutan could change its position on the project, it was decided at a meeting in November 2021 to go ahead for now, given that there are no new signals from Thimphu on the project.
- Progress on the seven-year-old project has been slow, despite several trial runs being held along the Bangladesh-India-Nepal road route for passenger buses and cargo trucks.
- There are still some agreements holding up the final protocols.
Back2Basics: Bangladesh, Bhutan, India, Nepal (BBIN)
- BBIN Initiative is a sub-regional architecture of countries in Eastern South Asia, a sub-region of South Asia.
- The group meets through the official representation of member states to formulate, implement and review quadrilateral agreements across areas such as water resources management, connectivity of power, transport, and infrastructure.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: TPD
Mains level: Refugee crisis of Ukranians
Responding to the crisis, EU Member States made the unprecedented decision to activate a major European Union’s Council Directive, known as the Temporary Protection Directive (TPD).
What is Temporary Protection?
- The EU Commission describes “temporary protection” under the TPD as an “exceptional measure to provide immediate and temporary protection to displaced persons from non-EU countries and those unable to return to their country of origin”.
- The directive applies when there is a risk that the standard asylum system is struggling to cope with demand stemming from a mass influx risking a negative impact on the processing of claims.
Objectives of this protection
- To both establish minimum standards for giving temporary protection to displaced persons
- To promote a balance of effort between Member States in receiving and bearing the consequences of receiving such persons
Why establish standards?
The Commission gives two reasons for doing so:
- It reduces disparities between the policies of EU States on the reception and treatment of displaced persons in a situation of mass influx.
- It promotes solidarity and burden-sharing among EU States with respect to receiving large numbers of potential refugees at one time.”
What obligations does the TPD place upon EU states?
According to the European Commission, the TPD “foresees harmonised rights for the beneficiaries of temporary protection”, which include:
- Residence permit for the duration of the protection (which can last from 1-3 years),
- Appropriate information on temporary protection,
- Access to employment,
- Access to accommodation or housing,
- Access to social welfare or means of subsistence,
- Access to medical treatment,
- Access to education for minors,
- Opportunities for families to reunite in certain circumstances, and
- Guarantees for access to the normal asylum procedure
The TPD also contains provisions for the return of displaced persons to their country of origin, unless they have committed serious crimes or they “pose a threat to security from the benefit of temporary protection”.
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From UPSC perspective, the following things are important :
Prelims level: Karewa
Mains level: Land degradation
Kashmir’s highly fertile alluvial soil deposits called ‘karewas’ are being destroyed in the name of development, much to the peril of local people
What are Karewas?
- The Kashmir valley is an oval-shaped basin, 140 km long and 40 km wide, trending in the NNW–SSE direction.
- It is an intermountain valley fill, comprising of unconsolidated gravel and mud.
- A succession of plateaus is present above the Plains of Jhelum and its tributaries.
- These plateau-like terraces are called ‘Karewas’ or ‘Vudr’ in the local language.
- These plateaus are 13,000-18,000 metre-thick deposits of alluvial soil and sediments like sandstone and mudstone.
- This makes them ideal for cultivation of saffron, almonds, apples and several other cash crops.
Significance of Karewas
- Today, the karewa sediments not only hold fossils and remnants of many human civilisations and habitations, but are also the most fertile spots in the valley.
- Kashmir saffron, which received a Geographical Indication (GI) tag in 2020 for its longer and thicker stigmas, deep-red colour, high aroma and bitter flavour, is grown on these karewas.
How are they formed?
- The fertility of these patches is believed to be the result of their long history of formation.
- When formed during the Pleistocene period (2.6 million years to 11,700 years ago), the Pir Panjal range blocked the natural drainage in the region and formed a lake spanning 5,000 sq km.
- Over the next few centuries, the water receded, making way for the valley and the formation of the karewas between the mountains.
Threats to Karewas
- Despite its agricultural and archaeological importance, karewas are now being excavated to be used in construction.
- Between 1995 and 2005, massive portions of karewas in Pulwama, Budgam and Baramulla districts were razed to the ground for clay for the 125-km-long Qazigund-Baramulla rail line.
- The Srinagar airport is built on the Damodar karewa in Budgam.
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From UPSC perspective, the following things are important :
Prelims level: Pal-Dadhvav Massacre
Mains level: Major tribal uprisings in freedom struggle
The Gujarat government has marked 100 years of the Pal-Dadhvav killings, calling it a massacre “bigger than the Jallianwala Bagh”.
Pal-Dadhvav Massacre
- The massacre took place on March 7, 1922, in the Pal-Chitariya and Dadhvaav villages of Sabarkantha district, then part of Idar state.
- The day was Amalki Ekadashi, which falls just before Holi, a major festival for tribals.
- Villagers from Pal, Dadhvav, and Chitariya had gathered on the banks of river Heir as part of the ‘Eki movement’, led by one Motilal Tejawat.
- The movement was to protest against the land revenue tax (lagaan) imposed on the peasants by the British and feudal lords.
- Tejawat, who belonged to Koliyari village in the Mewad region of Rajasthan, had also mobilised Bhils from Kotda Chhavni, Sirohi, and Danta to participate.
The fateful day
- Tejawat had been outlawed by the Udaipur state, which had announced a Rs-500 reward on his head.
- The Mewad Bhil Corps (MBC), a paramilitary force raised by the British that was on the lookout for Tejawat, heard of this gathering and reached the spot.
- On a command from Tejawat, nearly 2000 Bhils raised their bows and arrows and shouted in unison- ‘We will not pay the tax’.
- The MBC commanding officer, HG Sutton, ordered his men to fire upon them creating a huge stampede.
- Nearly 1,000 tribals (Bhils) fell to bullets. While the British claimed some 22 people were killed, the Bhils believe 1,200-1,500 of them died.
Must read:
Important Rebellions and Peasant Movements
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