Note4Students
From UPSC perspective, the following things are important :
Prelims level: IN-SPACE, ANTRIX, NSIl
Mains level: ISRO and India's space economy
- The government approved the creation of Indian National Space Promotion and Authorisation Centre (IN-SPACe) to ensure greater private participation in India’s space activities.
- This decision is described as historic being part of an important set of reforms to open up the space sector and make space-based applications and services more widely accessible to everyone.
Practice question for mains:
Q. What is IN-SPACe? Discuss how it would benefit ISRO and contribute to India’s space economy.
What is IN-SPACe?
- IN-SPACe is supposed to be a facilitator, and also a regulator.
- It will act as an interface between ISRO and private parties and assess how best to utilise India’s space resources and increase space-based activities.
- IN-SPACe is the second space organisation created by the government in the last two years.
- In the 2019 Budget, the government had announced the setting up of a New Space India Limited (NSIL), a public sector company that would serve as a marketing arm of ISRO.
Confusion over NSIL and ANTRIX
- NSIL’s main purpose is to market the technologies developed by ISRO and bring it more clients that need space-based services.
- That role, incidentally, was already being performed by Antrix Corporation, another PSU working under the Department of Space, and which still exists.
- It is still not very clear why there was a need for another organisation with overlapping function.
- The government now had clarified the role of NSIL that it would have a demand-driven approach rather than the current supply-driven strategy.
- Essentially, what that means is that instead of just marketing what ISRO has to offer, NSIL would listen to the needs of the clients and ask ISRO to fulfil those.
Then, why was IN-SPACe needed?
(1) ISRO and its limited resources
- It is not that there is no private industry involvement in India’s space sector.
- In fact, a large part of the manufacturing and fabrication of rockets and satellites now happens in the private sector. There is increasing participation of research institutions as well.
- Indian industry, however, is unable to compete, because till now its role has been mainly that of suppliers of components and sub-systems.
- Indian industries do not have the resources or the technology to undertake independent space projects of the kind that US companies such as SpaceX have been doing or provide space-based services.
(2) India and the global space economy
- Indian industry had a barely three per cent share in a rapidly growing global space economy which was already worth at least $360 billion.
- Only two per cent of this market was for rocket and satellite launch services, which require fairly large infrastructure and heavy investment.
- The remaining 95 per cent related to satellite-based services, and ground-based systems.
(3) Catering to domestic demands
- The demand for space-based applications and services is growing even within India, and ISRO is unable to cater to this.
- The need for satellite data, imageries and space technology now cuts across sectors, from weather to agriculture to transport to urban development and more.
- If ISRO is to provide everything, it would have to be expanded 10 times the current level to meet all the demand that is arising.
(4) Promoting other private players
- Right now, all launches from India happen on ISRO rockets, the different versions of PSLV and GSLV.
- There were a few companies that were in the process of developing their own launch vehicles, the rockets like ISRO’s PSLV that carry the satellites and other payloads into space.
- Now ISRO could provide all its facilities to private players whose projects had been approved by IN-SPACe.
How ISRO gains from all these?
- There are two main reasons why enhanced private involvement in the space sector seems important.
- One is commercial, and the other strategic. And ISRO seems unable to satisfy this need on its own.
- Of course, there is a need for greater dissemination of space technologies, better utilization of space resources, and increased requirement of space-based services.
- The private industry will also free up ISRO to concentrate on science, research and development, interplanetary exploration and strategic launches.
- Right now too much of ISRO’s resources are consumed by routine activities that delay its more strategic objectives.
A win-win situation for all
- ISRO, like NASA, is essentially a scientific organisation whose main objective is the exploration of space and carrying out scientific missions.
- There are a number of ambitious space missions lined up in the coming years, including a mission to observe the Sun, a mission to the Moon, a human spaceflight, and then, possibly, a human landing on the Moon.
- And it is not that private players will wean away from the revenues that ISRO gets through commercial launches.
- The space-based economy is expected to “explode” in the next few years, even in India, and there would be more than enough for all.
- In addition, ISRO can earn some money by making its facilities and data available to private players.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RRBs, Cooperative Banks
Mains level: RBI regulations of default bankers
To ensure that depositors are protected, the Centre has decided to bring all urban and multi-State cooperative banks under the direct supervision of the Reserve Bank of India (RBI).
Practice question for mains:
Q. What are Cooperative Banks? How are they regulated? Discuss their role in extending credit facilities in rural India.
What are Cooperative Banks?
- A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
- They are registered under the States Cooperative Societies Act.
- They are also regulated by the Reserve Bank of India (RBI) and governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1955.
What is the present decision?
- The urban cooperatives and multi-State cooperative banks have been brought under RBI supervision process, which is applicable to scheduled banks.
- Currently, these banks come under dual regulation of the RBI and the Registrar of Co-operative Societies.
Why such a move?
- The move to bring these urban and multi-State coop banks under the supervision of the RBI comes after several instances of fraud and serious financial irregularities.
- The most recent was the major scam at the Punjab and Maharashtra Co-operative (PMC) Bank last year.
- The RBI was forced to supersede the PMC Bank’s board and impose strict restrictions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Coccolithophores
Mains level: Not Much

A study of microscopic ancient marine algae (Coccolithophores) has found that there is a decrease in the concentration of oceanic calcium carbonate (CaCO3) in the Southern Indian Ocean.
Try this question:
Q.The Coccolithophores sometimes seen in news are-
(a) Diatoms
(b) Algae
(c) Coral Polyps
(d) Sea grass
Coccolithophores
- Coccolithophores are single-celled algae living in the upper layers of the world’s oceans.
- They have been playing a key role in marine ecosystems and the global carbon cycle for millions of years.
- They calcify marine phytoplankton that produces up to 40% of open ocean calcium carbonate and responsible for 20% of the global net marine primary productivity.
- They build exoskeletons from individual CaCO3 plates consisting of chalk and seashells building the tiny plates on their exterior.
Role as a carbon sink
- Though carbon dioxide is produced during the formation of these plates, coccolithophores help in removing it from the atmosphere and ocean by consuming it during photosynthesis.
- At equilibrium, they absorb more carbon dioxide than they produce, which is beneficial for the ocean ecosystem.
- These investigations are important for future intervention to bring positive changes in the marine ecosystem and the global carbon cycle.
Threats
- The reduction of coccolithophores is due to an increase in the presence of diatom algae, which occurs after sea ice breakdown with climate change and ocean acidification, and increases the silicate concentration in the waters of the Southern Ocean.
- Their existence is highly dependent on time and influenced by various environmental factors such as silicate concentrations, calcium carbonate concentration, diatom abundance, light intensity and availability of macro and possibly micronutrient concentrations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India-China relations
The Galwan incident marked the new low in the India-China relations. Following it, there have been talks of a closer alliance with the U.S. This article analyses the utility, potential and the limitations of this approach.
Exploring the strategic options
- As the border stand-off with China deepens, India will have to think of all possible strategic options that gives it leverage.
- One of the options is new arrangements with other powers.
- This is the right moment to mobilise international opinion on China.
- But can this be translated into concerted global action to exert real pressure on China?
Things India should consider while forming alliance with the US
- International relations are formed in the context of a country’s development paradigm.
- India’s primary aim should be to preserve the maximum space for its development model, if it can actually formulate one.
- India is not unique in this respect.
- The question for India is not just whether the US has a stake in India’s development, which it might.
- But it is, rather, to ask whether India’s development needs will fit into the emerging US development paradigm.
- Will the very same political economy forces that create a disengagement with China also come in the way of a closer relationship with India?
- Some sections of American big business might favour India.
- But the underlying political economy dynamics in the US are less favourable.
- Will the US give India the room it needs on trade, intellectual property, regulation, agriculture, labour mobility, the very areas where freedom is vital for India’s economy?
- Will a US hell-bent on bringing manufacturing jobs back to the US, easily gel with an “atma nirbhar” Bharat?
- To see what is at stake, we just need to look how the development paradigm is driving tensions on trade, taxation and regulatory issues between the US and EU.
Why India avoided alignment with the US in the past
- But the drivers of this have often been legitimate differences over development, including climate change.
- It has also been that, at various points, that alignment was against India’s other strategic commitments.
- India was wise to stay out of the war in Iraq, it was wise not to upset Russia.
- It is wise not to throw its weight behind the US’s Iran policy.
- There is more maturity in the US to understand India’s position.
Global reluctance in collective action against China
- It is an odd moment in global affairs, where there is recognition of a common challenge emanating from China.
- But there is no global appetite to take concerted action.
- An interesting example might be the global response to the BRI.
- Many countries are struggling to meet their BRI debt obligations.
- But it is difficult to see the rest of the international community helping all these countries to wean their regimes away from dependence on Chinese finance.
- Similarly, there are now great concerns over frontier areas of conflict like cyber security and space.
- It is difficult to imagine concerted global action to create rules in these area, partly because Great Powers like the US and Russia will always want to maintain their exceptionalism.
Limitations of global alliance and public opinion in solving local conflicts
- 1) The international community has not been very effective in neutralising
- exercised by some powers.
- This is the tactic Pakistan has used.
- 2) Don’t count on the fact that the world will support an Indian escalation beyond a point.
- The efforts of the international community, in the final analysis, will be to try and throw cold water on the conflict.
- No one has a serious stake in the fate of the terrain India and China are disputing.
- At the end of the day, India has to manage China and Pakistan largely on its own.
Conclusion
Even as we deal with the military situation on the border, the test of India’s resolve will be its ability to return to some first principle thinking about its own power.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Skills Build Reignite
Mains level: NA
MSDE-IBM Partnership has unveiled Free Digital Learning Platform “Skills Build Reignite” to reach more job seekers & provide new resources to business owners in India.
There are various web/portals/apps with Hindi acronyms such as YUKTI, DISHA, SWAYAM etc. Their core purpose is similar with slight differences. Pen them down on a separate sheet under the title various digital HRD initiatives.
Skills Build Reignite
- The SkillsBuild Reignite tends to provide job seekers and entrepreneurs, with access to free online coursework and mentoring support designed to help them reinvent their careers and businesses.
- It is a long term institutional training to the nation’s youth through its network of training institutes and infrastructure.
- IBM will provide multifaceted digital skill training in the area of Cloud Computing and Artificial Intelligence (AI) to students & trainers across the nation in the National Skill Training Institutes (NSTIs) and ITIs.
- Directorate General of Training (DGT) under the aegis of the Ministry of Skill Development & Entrepreneurship (MSDE) is responsible for implementing the program.
- Job seekers, individual business owners, entrepreneurs and any individual with learning aspirations can now tap into host of industry-relevant content on topics including AI, Cloud, Data analytics etc.
Features
- Its special feature is the personalized coaching for entrepreneurs, seeking advice to help establish or restart their small businesses as they begin to focus on recovery to emerge out of the COVID 19 pandemic.
- Courses for small business owners include, for example, financial management, business strategy, digital strategy, legal support and more.
- Plus, IBM volunteers will serve as mentors to some of the 30,000 SkillsBuild users in 100 communities in at least five major regions worldwide to help reinvigorate local communities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- PDS and related issues
- The Public distribution system (PDS) is an Indian food Security Systemestablished under the Ministry of Consumer Affairs, Food, and Public Distribution.
- PDS evolved as a system of management of scarcity through distribution of food grains at affordable prices.
- PDS is operated under the joint responsibility of the Central and the State Governments.
- The Central Government, through Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments.
- The operational responsibilities including allocation within the State, identification of eligible families, issue of Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., rest with the State Governments.
- Under the PDS, presently the commodities namely wheat, rice, sugar and keroseneare being allocated to the States/UTs for distribution. Some States/UTs also distribute additional items of mass consumption through the PDS outlets such as pulses, edible oils, iodized salt, spices, etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India's export
Mains level: Paper 3- India's foreign trade and comparison with China
China began heavy investment in infrastructure. This was a key policy decision as it provided employment to millions of people improving their economic status and purchasing power, which was the essential ingredient for industrial progress.ajya Sabha TV programs like ‘The Big Picture’, ‘In Depth’ and ‘India’s World’ are informative programs that are important for UPSC preparation. In this article, you can read about the discussions held in
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India-China border dispute
The LAC has been exploited by China as leverage against India. And failure on our part to understand long-term strategic aims and objective of China makes the problem hard to solve. This article suggests a three-pronged approach to deal with China.
Incomprehension of aims and objectives
- There is incomprehension among our decision-makers of the long-term strategic aims and objectives that underpin China’s belligerent conduct.
- We have not devoted adequate intellectual capital, intelligence resources and political attention to acquisition of a clear insight into China and its motivations.
- Even when intelligence is available, analysis and dissemination have fallen short.
What China’s Defence White Papers suggest
- These thematic public documents articulate China’s national security aims, objectives and vital interests and also address the “ends-ways-means” issues related to its armed forces.
- The 11 DWPs issued so far are a model of clarity and vision, and provide many clues to current developments.
- No Indian government since Independence has deemed it necessary to issue a defence white paper, order a defence review or publish a national security strategy.
- Had we done so, it may have prepared us for the unexpected and brought order and alacrity to our crisis-response.
China uses LAC as strategic leverage
- In order to show India its place, China had administered it a “lesson” in 1962.
- And it may, perhaps, be contemplating another one in 2020, with the objective of preventing the rise of a peer competitor.
- For China, the line of actual control or LAC, representing an unsettled border, provides strategic leverage.
- Leverage it can use to keep India on tenterhooks about its next move while repeatedly exposing the latter’s vulnerabilities.
1993 Agreement didn’t benefit India
- Our diplomats derive considerable satisfaction from the 1993 Border Peace & Tranquility Agreement.
- This agreement, according to former foreign secretary, Shivshankar Menon, “…effectively delinked settlement of the boundary from the rest of the relationship”.
- But by failing to use available leverage for 27 years, and not insisting on bilateral exchange of LAC maps, we have created a ticking time-bomb, with the trigger in China’s hands.
- While “disengagement” may soon take place between troops in contact, it is most unlikely that the PLA will pull back or vacate any occupied position in Ladakh or elsewhere.
- In which case, India needs to consider a three-pronged strategy.
What should be India’s three-pronged strategy?
1. Reinforce at ground level
- At the ground-level, we need to visibly reinforce our positions, and move forward to the LAC all along.
- We should enhance the operational-tempo of the three services as a measure of deterrence.
- Indian warships should show heightened presence at the Indian Ocean choke-points.
- Cyber emergency response teams country-wide should remain on high alert.
- We should build-up stocks of weapons, ammunition and spares.
- The Ministry of Defence should seize this opportunity to urgently launch some long-term “atma-nirbharta” schemes in defence-production.
2. At strategic level: Modus vivendi
- At the strategic level, the government should consider sustained process of engagement with China at the highest politico-diplomatic echelons.
- The negotiations should seek multi-dimensional Sino-Indian modus-vivendi; encompassing the full gamut of bilateral issues like trade, territorial disputes, border-management and security.
- Simultaneously, at the grand-strategic level, India should initiate a dialogue for the formation of an “Indo-Pacific Concord for Peace and Tranquility”.
- This Concord should involve inviting four members of the Quad as well as Vietnam, Indonesia, Philippines and Malaysia.
3. Political pragmatism
- As a nation, we need to be pragmatic enough to realise that neither conquest nor re-conquest of territory is possible in the 21st century.
- Parliament should, now, resolve to ask the government, “to establish stable, viable and peaceful national boundaries”.
Consider the question “With changing relations with China, India needs to overhaul its strategy on the ground, strategic and political levels in dealing with China”
Conclusion
This three-pronged approach while comprehending the Chines objectives and goals can help India in dealing successfully with the challenge posed by China.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM CARES
Mains level: Paper 3- Disaster Management Act, National Plan
The Disaster Management Act (DMA) 2005 has been invoked by the government to deal with the pandemic. However, National Plan as provided under the Act to deal with Covid-19 is nowhere to be found. Also, the creations of PM CARES violated the provision of the DMA-2005. These two issues are discussed here.
Provisions of DMA 2005
- The Act, along with other things provides the constitution of a National Authority, a National Executive committee.
- It also provides for the constitution of an advisory committee of experts in the field to make recommendations and to prepare a national plan.
- This plan must provide for measures for prevention or mitigation.
- The Act lays down “guidelines for minimum standards of relief, including ex gratia assistance.
Provision of various Funds under DMA 2005
- It enables the creation of a National Disaster Response Fund in which the central government must make due contribution.
- It also requires “any grants that may be made by any person or institution for the purpose of disaster management” to be credited into the same Fund.
- It also provides for a National Disaster Mitigation Fund, exclusively for mitigation.
- The Act also provides for State and local-level plans and for creating State Disaster Response Fund among others.
Provision of disaster management plan
- After the direction by the SC, the government came out with a National Disaster Management Plan (NDMP), 2016.
- This Plan dealt with various kinds of disasters; it was amended in 2019.
- Bu this National Plan not in place now.
- Without it, the fight against COVID-19 is ad hoc and has resulted in thousands of government orders.
- These orders are confusing those who are to enforce them as well as the public.
NDRF and PM CARES issue
- On April 3, 2020, the government of India agreed to contribute its share to the NDRF.
- But a public charitable trust under the name of Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was set up to receive grants made by persons and institutions out of the NDRF, in violation of Section 46 of the Act.
- The crores being sent to this fund are not even audited by the Comptroller and Auditor General (CAG) of India.
- It is a totally opaque exercise.
- The government of the day has not only ignored the binding law but also circumvented it.
- The government has been fighting the crisis in an ad hoc and arbitrary manner instead of the organised steps as mandated by the Act.
- In so doing, the experts have been sidelined.
Consider the question “Describe the various provision of the DMA 2005 to deal with the disaster. In light of this, examine whether the creation of PM CARES conflicts with the provision of his act”
Conclusion
The national plan to deal with the pandemic and making PM CARES more transparent would help the government in its fight against the corona crisis.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Lal-Bal-Pal
Mains level: Swadeshi Movement and its pioneers

To commemorate the death centenary of Tilak, a Pune based NGO is set to revive the Independence-era spirit of the ‘Lal-Bal-Pal’, named after nationalists Lala Lajpat Rai, ‘Lokmanya’ Bal Gangadhar Tilak and Bipin Chandra Pal.
Try this PYQ from CSP 2010:
Q. What was the immediate cause for the launch of the Swadeshi movement?
(a) The partition of Bengal done by Lord Curzon.
(b) A sentence of 18 months of rigorous imprisonment imposed on Lokmanya Tilak.
(c) The arrest and deportation of Lala Lajpat Rai and Ajit Singh; and passing of the Punjab ColonizationBill.
(d) Death sentence pronounced on the Chapekarbrothers.
About Lal-Bal-Pal
- Lal Bal Pal was a triumvirate of assertive nationalists in British-ruled India in the early 20th century, from 1906 to 1918.
- They advocated the Swadeshi movement involving the boycott of all imported items and the use of Indian-made goods in 1907 during the anti-Partition agitation in Bengal which began in 1905.
- The final years of the nineteenth century saw a radical sensibility emerge among some Indian intellectuals.
- This position burst onto the national all-India scene in 1905 with the Swadeshi movement – the term is usually rendered as “self-reliance” or “self-sufficiency”.
Their Legacy
- Lal-Bal-Pal mobilized Indians across the country against the Bengal partition, and the demonstrations, strikes and boycotts of British goods that began in Bengal soon spread to other regions in a broader protest against the Raj.
- The nationalist movement gradually faded with the arrest of its main leader Bal Gangadhar Tilak and retirement of Bipin Chandra Pal and Aurobindo Ghosh from active politics.
- While Lala Lajpat Rai suffered from injuries, due to British police superintendent, James A. Scott, ordered the British Indian police to lathi charge and personally assaulted Rai; he died on 17 November 1928.
Back2Basics:
Lala Lajpat Rai
- Born in undivided Punjab on 28 January 1865, Lala Lajpat Rai grew up in a family that allowed the freedom of faith.
- Even before he focused his efforts towards a self-sufficient India, Rai believed in the principle.
- In 1895, he started the Punjab National Bank—the first Indian bank to begin solely with Indian capital, and that continues to function till date.
- Rai had travelled to America in 1907 and immediately caught up similarities between the ‘colour-caste’ practised there and the caste system prevalent in India.
- In 1917, he even founded the Indian Home Rule League of America there.
- His proactive, brave participation in the protest earned him the title of the Lion of Punjab or Punjab Kesari.
Bal Gangadhar Tilak
- Bal Gangadhar Tilak (23 July 1856 – 1 August 1920) was an Indian nationalist, teacher, and an independence activist
- In 1884, he founded the Deccan Education Society in Pune, and under the banner, opened the New English School for primary studies and Fergusson College for higher education.
- His involvement in the educational institutions was to emphasise on the cultural revival of young Indian minds.
- For the British, Tilak was the “Father of the Indian Unrest.”
- When the Indian National Congress was divided among moderates and extremes—the stand that each member took against the British government—there was no doubt which side Tilak supported.
- Literary works: Kesari and Maratha newspapers
Bipin Chandra Pal
- The father of revolutionary thoughts, Bipin Chandra Pal, was born to a wealthy family in Sylhet, Bengal Presidency (now in Bangladesh).
- Pal was a journalist by profession and often contributed to several newspapers.
- He used his literary expertise to write against the use of British goods, advocating Indians to start using Swadeshi goods instead.
- He was of a strong opinion that a mass reliance on Swadeshi goods would help people get rid of their poverty.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IN-SPACE, ANTRIX
Mains level: ISRO and the scope for its commercial operations
The Union Cabinet has approved the creation of the Indian National Space Promotion and Authorization Centre (IN-SPACe) to provide a level playing field for private companies to use Indian space infrastructure.
Note the key differences between IN-SPACe, ANTRIX and NSIL. We can expect a prelims question with shuffled objectives of these organisations.
IN-SPACe
- The creation of IN-SPACe is part of reforms aimed at giving a boost to private sector participation in the entire range of space activities.
- The IN-SPACe is expected to hand-hold, promote and guide the private industries in space activities through encouraging policies and a friendly regulatory environment.
- It would endeavour to reorient space activities from a ‘supply-driven’ model to a ‘demand-driven’ one, thereby ensuring optimum utilization of the nation’s space assets.
Why need IN-SPACe?
- India is among a handful of countries with advanced capabilities in the space sector.
- Space sector can play a major catalytic role in the technological advancement and expansion of our Industrial base.
- The proposed reforms will enhance the socio-economic use of space assets and activities, including through improved access to space assets, data and facilities.
Back2Basics: New Space India Limited (NSIL)
- It functions under the administrative control of Department of Space (DOS).
- It aims to commercially exploit the research and development work of ISRO Centres and constituent units of DOS.
- The NSIL would enable Indian Industries to scale up high-technology manufacturing and production base for meeting the growing needs of the Indian space programme.
- It would further spur the growth of Indian Industries in the space sector.
ANTRIX
- Antrix Corporation Limited (ACL), Bengaluru is a wholly-owned Government of India Company under the administrative control of the Department of Space.
- It is as a marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO.
- Antrix is engaged in providing Space products and services to international customers worldwide.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GeM
Mains level: India-China trade deficit
The government has made it mandatory for sellers on the Government e-Marketplace (GeM) portal to clarify the country of origin of their goods when registering new products.
Practice question for mains:
Q. India’s quest for self-reliance is still a distant dream. Critically comment in light of the popular sentiment against the Chinese imports in India.
What is Government e-Marketplace?
- The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
- It was launched in 2016 to bring transparency and efficiency in the government buying process.
- GEM aims to enhance transparency, efficiency and speed in public procurement.
- It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.
- It provides the tools of e-bidding, reverses e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.
- The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
- It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).
What is the new move?
- Sellers on the GeM portal will now have to disclose the origins of their products.
- The portal also has a ‘Make in India’ filter, and government offices will be able to ascertain which products have a higher content of indigenously produced raw materials.
Why need ‘Country of Origin’ tag?
- The tag would help bidders choose products that meet the ‘minimum 50 per cent local content’.
- This is the new procurement norm amended by the government earlier this month categorise suppliers based on the level of local content in their goods.
- The GeM portal now allows buyers to reserve a bid for Class I local suppliers, or suppliers of those goods with more than 50 per cent local content.
- For bids below Rs 200 crore, only Class I and Class II (those with more than 20 per cent local content) are eligible.
Why is all of this happening?
- The decision comes in the backdrop of the government’s push for self-sufficiency which intends to promote self-reliance by boosting the use of locally produced goods.
- At $ 70.32 billion in 2018-19 and $ 62.38 billion between April 2019 and February 2020, China accounts for the highest proportion of goods imported into India (around 14 per cent in 2019-2020 so far).
- It also follows the deadly clashes between Indian and Chinese troops in Galwan Valley which have prompted several government departments to launch an offensive against imports from China.
How will ordinary consumers in India be impacted?
- The announcement may over time filter out imported goods from use in government offices and facilities.
- This might provide an opportunity to Indian manufacturers across industries to push their products in government facilities.
- A more direct impact may be seen if the proposal to mandate the country of origin for products on private platforms is implemented.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Art. 340
Mains level: National Commission for Backward Classes and its mandate
The Union Cabinet has approved the extension of the term of the Commission to examine the issue of Sub-categorization of Other Backward Classes, by 6 months i.e. upto 31.1.2021.
Practice question for mains:
Q.The quota policy for OBCs needs a revisit. Comment.
About the commission
- The Commission was constituted under Article 340 of the Constitution in 2017 under the chairmanship of Justice (Retd.) Smt. G. Rohini.
- The Commission has since interacted with all the States/UTs which have subcategorized OBCs, and the State Backward Classes Commissions.
- The expenditure related to the establishment and administration costs of the Commission is borne by the Department of Social Justice and Empowerment.
Background
- The Supreme Court in Indra Sawhney and others vs. Union of India case (1992) had observed that there is no constitutional or legal bar on states for categorizing OBCs as backward or more backward.
- It had also observed that it is not impermissible in law if a state chooses to do sub-categorization.
- So far, 9 states/UTs viz. Karnataka, Haryana, Andhra Pradesh, Jharkhand, Puducherry, Telangana, West Bengal, Bihar, Maharashtra and Tamil Nadu have carried out sub-categorization of OBCs.
- However, there was no subcategorization in the central list of OBCs so far.
Why need a sub-categorization?
- Presently, half of these 1,900-odd castes have availed less than three per cent of reservation in jobs and education, and the rest availed zero benefits during the last five years.
- Five-year data on OBC quota implementation in central jobs and higher educational institutions showed that a very small section has cornered the lion’s share.
- A/c to the Commission, the classification is based on relative benefits availed and not relative social backwardness, which involves parameters such as social status, traditional occupations, religion, etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: AHIDF
Mains level: Animal husbandary sector of India
The Cabinet Committee on Economic Affairs has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore.
Practice question for mains:
Q. In pursuit of doubling farmer’s income, development of animal husbandry has to play a crucial role. Discuss.
About AHIDF
- The fund is part of the Rs 20 lakh crore stimulus packages to help people affected by the lockdown to prevent the spread of COVID-19.
- The AHIDF would promote infrastructure investments in dairy, meat processing and animal feed plants.
- Farmer producer organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs would be eligible to benefit from the fund.
- It will ensure the availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.
Provisions of the AHIDF
- The beneficiaries will have to contribute 10 per cent margin towards the proposed infra project and the rest 90 per cent would be a loan component to be made available to them by scheduled banks.
- The balance 90% would be the loan component to be made available by scheduled banks.
- Government of India will provide 3% interest subvention to eligible beneficiaries.
- There will be 2 years moratorium period for the principal loan amount and 6 years repayment period thereafter.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various waterfalls mentioned in the newscard
Mains level: NA

The Kerala government recently gave the go-ahead for the proposed 163-megawatt (MW) Athirappally Hydroelectric Project.
Information about some of India’s tallest waterfalls is provided in the B2b section. Kindly pen them down along with their respective states. They can be asked in the match the pair type question.
Athirappally Waterfalls
- The famous Athirappally Waterfalls is located on the Chalakudy River in Thrissur district of Kerala.
- It originates from the upper reaches of the Western Ghats at the entrance to the Sholayar ranges.
- It is the largest waterfall in Kerala, which stands tall at 80 feet and is nicknamed “The Niagara of India”.
- Controversy about a state-proposed hydroelectric dam on the Chalakudy River above the waterfalls began in the 1990s and continued through 2021.
Issues with the Hydel project
- A number of families belonging to the Kadar tribal group are facing displacement here.
- The dam will also affect irrigation and tourism possibilities in the downstream parts of the Chalakudy River.
- The falls and its surroundings are part of a crucial biodiversity-rich region coming under the Ecologically Sensitive Zone 1 of the Western Ghats.
- The Ghats themselves are a UNESCO World Heritage Site and are one of the eight “hottest hot-spots” of biological diversity in the world.
Back2Basics: Waterfalls in India
- Vajrai Falls (560m): Satara, Maharashtra
- Kunchikal Falls (455m): Shimoga, Karnataka
- Barehipani Falls (390m): Odisha
- Nohkalikai Falls (340m): East Khasi, Meghalaya
- Dudhsagar Falls (310m): Karnataka, Goa
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Galwan river, Shyok River
Mains level: Paper 2- India-China relations
This article calibrates the changes our future engagement with China will experience following the Galwan incident. The first casualty has been the trust between the two countries. And next could be strategic communications between the two countries. So, India’s response to the incident should be based on these changes.
What explains China’s aggression
- Hubris, internal insecurities in China, the COVID-19 pandemic and the complex and confused external environment explains it.
- Challenge posed by India from the ideological, strategic and economic points of view can be the other factor.
Violation of many agreements
- China’s recent military actions in Ladakh clearly violate the signed agreements of 1993, 1996, 2005, etc on maintaining peace and tranquillity along the LAC.
- These actions are in violation also of other signed agreements, including at the highest level.
- It also contradict positions taken by Xi himself at the informal Wuhan and Chennai summits in 2018 and 2019.
- In 2003, two countries signed a Declaration on Principles for Relations and Constructive Cooperation between our two countries.
- The third principle states: “The two countries are not a threat to each other. Neither side shall use or threaten to use force against the other.”
- This was more than reiterated in the agreement signed in April 2005 on the Political Parameters and Guiding Principles for settlement of the India China boundary question.
- . Article 1 states, inter alia: “Neither side shall use or threaten to use force against the other by any means.”
Doklam and informal summits
- .A qualitative change though occurred in Chinese perceptions after the Doklam face-off.
- That necessitated the first informal summit at Wuhan in April 2018.
- One important outcome of that summit was the agreement to continue to meet at the highest level and to enhance trust and strengthen strategic communication.
- The second informal summit took place between Xi and Narendra Modi in Chennai in October 2019.
- It was in the aftermath of the revocation of Article 370 by India and China’s unnecessary and unsuccessful attempt to raise the issue in the UN Security Council.
- By then, many other developments — both internal and external — had added pressure on China.
- At Chennai, the Chinese undoubtedly drew some red lines.
Which red lines does China feel India has crossed
- One fundamental red line is China’s long-held and strategic interest in parts of Jammu and Kashmir.
- Jammu and Kashmir border Xinjiang and Tibet and allow connectivity between the two.
- It is wrongly argued that it is Pakistan that is the issue in J&K.
- China is as big an issue but has quietly hidden behind Pakistan’s cover.
- That is no longer feasible as democratic India becomes economically and otherwise stronger.
Future of Special Representative process
- The Special Representatives process to address the boundary question seems stalemated and its usefulness needs review.
- The 2005 agreement contains the necessary parameters for a boundary settlement but there is obviously not adequate common ground.
- Some positivity can, however, be brought in if the LAC clarification process is revived and completed in a time-bound manner.
- But this is easier said than done in the prevailing circumstances.
- Patrolling procedures will need to be revised, preferably by mutual agreement.
Unsustainable economic partnership
- The current nature of the economic partnership between India and China is not sustainable.
- India’s annual trade deficit with China in recent years virtually finances a CPEC a year!
- China has still not fulfilled all its commitments to India on joining the WTO in 2001.
What should be our trade policy
- Indian business and industry must stop taking the easy option.
- Some costs will no doubt go up but there can be environmental advantages of switching to other sources of technology and equipment.
- There is more than one available source of financial investments in Indian ventures.
What will be the nature of bilateral dialogue
- Bilateral dialogue mechanisms will continue their desultory course.
- On issues of interest to India such as terrorism, we get no support from China.
- Cooperation on river waters has not evolved.
- On the global agenda, on issues such as climate change, dialogue and cooperation will continue in multilateral fora depending on mutual interest.
What should be the nature of governments response
- The response to China’s recent actions in Ladakh must be an all-of-government one, indeed an all-India one.
- It should be covering all sectors including heightened security and be coordinated, consistent.
- This is not a question of nationalism or patriotism but of self-esteem and self-respect.
Consider the question “What should be the basis of India’s evolving policy response to China’s new approach to the border dispute?”
Conclusion
Bilateral relations between India and China cannot progress unless there is peace on the borders and China recognises that India too has non-negotiable core concerns, aspirations and interests.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3-Northern border security issue
Two issues have been discussed in this article:change in strategy on northern border and the role of political leaders. Leveraging LAC for premeditated aggression has been part of China’s policy. This makes the change in our policy an imperative.
LAC as leverage against India
- India and China have had parleys since 1981, meetings of Joint Working Groups from 1988 to 2005 and 22 rounds of Special Representatives talks, in addition to many summit-level meetings.
- Despite nearly four decades of discussions delineation and demarcation of the boundary has not been possible.
- Throughout this period CMC/PLA had been at the helm of the defence and foreign policy decision-making,
- The intrusion at Finger 4/5 of Pangong Tso and the transgression up to LAC in Galwan are instructive.
- Out of the blue, most inexplicably and without any historical basis, the official Chinese statement came out seeking the “estuary” of Shyok and Galwan rivers.
- The Chinese have deliberately ensured that the nebulous nature of the LAC is retained as leverage against India.
Modernisation of PLA: So, was Galwan a testbed?
- The PLA is at the threshold of achieving its interim modernisation goals of informatised, integrated joint operations by 2021.
- It is well likely that the events of Eastern Ladakh of May-June 2020 are part of a larger testbed.
- Over the years, the face-offs have witnessed PLA’s jostling and pushing, posse of horses intruding, and scant disregard for the treaties with India.
- Pangong Tso and Galwan showed a new picture.
Need to strategise and revisit the rules of engagement
- For the Indian Army units and formations in Eastern Ladakh or elsewhere facing the PLA, there are limits to adherence to good faith and honour.
- The Indian Army has to strategise and should revisit its rules of engagement on the Northern Borders.
- It has to be mindful that troops in tactical situations cannot be shackled by past treaties, which the PLA deals with disdain.
- The Indian Army has to remain prepared to militarily handle the situations that will arise.
- PLA has always shown extraordinary interest in Eastern Ladakh, especially Daulat-Beg-Oldi, the Chip-Chap river, Track Junction and Karakoram Pass.
- The management practices for the Northern Borders have to be revisited, like placing the nearly division-sized force of ITBP in Eastern Ladakh under the army operationally.
- Real-time intelligence, surveillance equipment and satellite imageries must be available to field formations that need to act on it.
- This should not be delayed by the bureaucratic maze.
Role of political leadership
- At political level, there are representative forums like Parliament, the committees and regular briefings to seek clarifications, which is the right of politicians.
- On national security issues, there must be national unity.
- There ought to be faith in those at the helm that the issues of national security will not be sacrificed for political gains.
- Similarly, within the norms and constraints of national security, the establishment must keep the nation informed, to avoid an information vacuum.
Conclusion
We need to strategise for the future, including the modern manifestations of non-contact, non-kinetic warfare. We must avoid unnecessary nitpicking on semantics of statements made in a particular context.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: WW2 and related stories
Raksha Mantri is on a three-day trip to Russia to attend the 75th Victory Day. India has sent a tri-services contingent to participate in the Victory Day Parade.
Try these questions from CS Mains:
Q.To what extent can Germany be held responsible for causing the two World Wars? Discuss critically. (CSM 2015)
Q.The New Economic Policy – 1921 of Lenin had influenced the policies adopted by India soon after independence. Evaluate. (CSM 2014)
What is Victory Day?
- Victory Day marks the end of World War II and the victory of the Allied Forces in 1945.
- Adolf Hitler had shot himself on April 30. On May 7, German troops surrendered, which was formally accepted the next day and came into effect on May 9.
- In most European countries, it is celebrated on May 8 and is called the Victory in Europe Day.
Why does Russia not celebrate Victory Day on the same date?
- The erstwhile Soviet Union had not wanted the surrender to take place in the west and wanted that such a significant event should reflect the contribution of the Red Army and the Soviet population.
- According to historians, Joseph Stalin, premier of the Soviet Union, wanted Germany to also sign surrender in Berlin.
- Since crowds were already gathering in London to celebrate, Victory in Europe Day celebration in Britain would take place on 8 May, as they did in the United States.
- This did not convince Stalin, who argued that Soviet troops were still fighting the German forces in many areas.
- German soldiers did not surrender in East Prussia, Courland Peninsula, Czechoslovakia till later. Hence victory celebration could therefore not begin in the Soviet Union even after May 9.
If May 9 is Victory Day, why is it being celebrated on June 24?
- This year, the celebrations this year were pushed to June because of the Covid-19 pandemic.
- After winning the war and having its own Victory Day on May 9, Stalin wanted to commemorate the victory with a military parade.
- On June 22, 1945, he ordered the commemoration of the victory over Germany to hold the victory parade on June 24, 1945, in Moscow’s Red Square.
- Hence the first Victory Day Parade took place on June 24 in Moscow. However, since then, the Parades have taken place on May 9.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tenth Schedule
Mains level: Issues over Speaker's discretion in Anti-defection
Manipur Speaker’s decision to disqualify some MLAs ahead of the Rajya Sabha election has raised questions once again on the Speaker’s powers to disqualify under the tenth schedule of our Constitution.
Try this question from CSP 2019:
Q.The Ninth Schedule was introduced in the Constitution of India during the prime-ministership of:
(a) Jawaharlal Nehru
(b) Lal Bahadur Shastri
(c) Indira Gandhi
(d) Morarji Desai
What is the Tenth Schedule?
- The anti-defection law, referred to as the Tenth Schedule, was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM.
- It lays down the process by which legislators may be disqualified on grounds of defection by the Presiding Officer of a legislature based on a petition by any other member of the House.
- A legislator is deemed to have defected if he either voluntarily gives up the membership of his party or disobeys the directives of the party leadership on a vote.
- This implies that a legislator defying (abstaining or voting against) the party whip on any issue can lose his membership of the House.
- The law applies to both Parliament and state assemblies.
Exceptions under the law
- Legislators may change their party without the risk of disqualification in certain circumstances.
- The law allows a party to merge with or into another party provided that at least two-thirds of its legislators are in favour of the merger.
- In such a scenario, neither the members who decide to merge nor the ones who stay with the original party will face disqualification.
Is there any time limit to decide on the matter?
- The law does not specify a time period for the Presiding Officer to decide on a disqualification plea.
- Given that courts can intervene only after the Presiding Officer has decided on the matter, the petitioner seeking disqualification has no option but to wait for this decision to be made.
Under debate: Speaker’s power
- The power for this disqualification is vested in the Speaker, who is usually a nominee of the ruling party.
- Since no action was taken by the Speaker on the disqualification petitions, a writ petition was filed before the High Court of Manipur in Imphal seeking directions to decide on the petition.
- However, the court did not pass an order.
- It said that the larger issue of whether a High Court can direct a Speaker to decide a disqualification petition within a certain timeframe is pending before a Constitution Bench of the Supreme Court.
- The parties are left with the option to move the apex court or wait for the outcome of the cases pending before it.
The apex court’s reluctance to intervene
- In 2018, however, the High Court, refusing the preliminary objections of the Speaker, decided to hear the case on merits.
- It reasoned that since the remedy under Tenth Schedule is an alternative to moving courts.
- It said that if the remedy is found to be ineffective due to deliberate inaction or indecision on the part of the Speaker, the court will have jurisdiction.
- However, the High Court again did not pass orders since the larger issue is pending before the Supreme Court.
The apex court recommends-
- The apex court has expressed its displeasure with the Speaker’s lack of urgency in deciding the disqualification petitions.
- A three-judge bench of the Supreme Court ruled that Speakers of assemblies and the Parliament must decide disqualification pleas within a period of three months except in extraordinary circumstances.
- This settled the law for situations where the timing of the disqualification is meddled to manipulate floor tests.
- The court also recommended that the Parliament consider taking a relook at the powers of the Speakers citing instances of partisanship.
- The court suggested independent tribunals to decide on disqualification.
Also read:
Explained: Anti-defection law and its evolution
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fiscal deficit
Mains level: Paper 3- Monetary and fiscal policy response to deal with the crisis.
The economic crisis in the wake of the pandemic is different from past crises. In the past, the financial crisis led to economic shock. This time its economic shock that that is causing the financial crisis. This also means that our response to this crisis should also be different. This article elaborates on the fiscal and monetary policy response to the crisis.
Pattern followed by economic crises
- There is a well-established pattern to economic crises in emerging markets (EMs).
- First, because of loose fiscal and monetary policies, the economy goes into a demand overdrive.
- Demand overdrive spikes inflation and widens the current account deficit (CAD).
- Then, CAD is financed by foreign capital chasing the promise of even higher growth and asset prices.
- At some point, the overdrive is perceived as unsustainable, which triggers a reassessment of growth, inflation, and financial stability.
- Domestic and foreign investors stop new investments, large capital outflows ensue.
- Banks stop giving new loans and rolling over old ones on fears of worsening credit quality.
- Growth collapses and a full-blown economic crisis follows.
- The 1995 Mexican, the 1997 Asian, the 1999 Russian, the 2008 sub-prime, and the 2013 Taper Tantrum are all examples of such crises.
- In the case of India, the 1981-82, the 1991-92, and the 2013 crises all had the same characteristics.
Pattern in response to such crises
- The first response is to restore confidence in policymaking.
- It means large increases in interest rates, massive withdrawal of liquidity, and deep cuts in fiscal deficit.
- Just before the crisis assets [which reflects in bank’s balance sheets] are severely overvalued on inflated views of growth, profits, and income prior to the crisis.
- So, the second step is to restart the economy by restructuring the tattered balance sheets of banks, firms, and households.
- This means debt restructuring and bank recapitalisation aided by privatisation, closures, and mergers.
- These measures often need to be bolstered by structural reforms.
- The economic crisis makes it easier to forge the political consensus for the reforms.
But the economic crisis caused by pandemic is different
- Why is it different?
- Because, before the COVID-19 outbreak far from overheating, Indian economy was slowing down.
- The financial system had virtually shut off the flow of credit as it wrestled with its bad debt burden.
- This is not an instance of a financial crisis turning into an economic shock weighed down by damaged balance sheets.
- Instead, this is an instance of an economic shock that could turn into a financial crisis if the damaged balance sheets are not repaired.
So, should the response also be different?
- Yes.
- Do the opposite of what is done in a typical EM crisis: Cut interest rates, increase liquidity support, and allow the fiscal deficit to widen.
- The RBI has done the first two generously, although with the coming disinflation, it needs to cut interest rates much more.
- But, what about the fiscal policy of the government?
Fiscal policy of the government: Doing not enough
- The government’s approach to fiscal policy, however, seems ambivalent.
- The overall fiscal support from the government will be limited to 2 per cent of the GDP.
- So all the revenue shortfall and the pandemic-related budgetary support must add up to 2 per cent of the GDP.
- If the revenue shortfall is more than 2 per cent of GDP, then total spending will need to be cut.
Why fiscal policy matters for balance sheets
- In this crisis, the causality of damage to balance sheets runs opposite.
- Balance sheets will be damaged not because of prior excesses but because of the collapse in incomes during the lockdown.
- Consequently, debt doesn’t need to be restructured to resume the flow of credit and get the recovery going.
- Instead, what is needed is adequate income support to households and firms.
- Such support will provide the needed time and space for the recovery to take hold.
- Which, in turn, would repair much of the damage to the balance sheets.
- But the fiscal response so far has been inexplicably restrained.
What should the government focus on
- What matters today is the assurance of medium-term growth and not a few higher or lower points in this year’s fiscal deficit.
- To do that, the government needs to allow the deficit to rise.
- This extra deficit should help accommodate the decline in revenue and also provide adequate income support.
- Some have argued that the government, instead, needs to offset the decline on private demand by increasing public spending.
- This is an odd argument.
- It would mean letting demand collapse and then compensating it with higher government spending.
- Instead, using the same resources to ensure that private demand did not decline was the more natural and efficient response.
What should be the RBI’s response
- The RBI, too, has a very large role to play.
- As elsewhere, it is now the only entity that has a strong enough balance sheet to provide any meaningful support.
- The RBI is keeping markets flush with liquidity and low interest rates.
- However, the RBI also needs to undertake extensive quantitative easing to keep bond yields from spiking given the likely large increase in deficit.
- Because of the depth of the growth shock, bad debt will rise.
- The natural instinct of banks is to cut back credit because of worsening credit quality.
- To prevent this from happening, the RBI will need to extend substantial regulatory forbearance on accounting norms, provisioning rules, and, if needed, even capital requirements.
- In addition, like the US Fed and the ECB, the RBI might also need to provide liquidity directly to corporates.
- As of now, banks are providing liquidity to corporates supported by government guarantees as proposed now.
Consider the question “The economic crisis brought by the corona crisis is not like the ones we faced before. This crisis is about an economic shock turning into the financial crisis. So, what should be fiscal and monetary policy interventions to tackle the crisis?”
Conclusion
This is not a crisis like the ones before. This time around, we need to weigh not the cost of taking these measures but the cost of not taking them.
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