Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Making the economy self reliant.
‘Atma-nirbhar’ has become a buzzword after PM Modi mentioned it in his speech. This article analyses the policy statement announced by the PM that focuses on self-reliance of the country in the future. So, what exactly the term self-reliance could include? what are the areas in which India is dependent on other economies? Read the article to know more about these issues.
Policy statement of 1991
- In 1991, only four policy statements were made —the end of licence-permit Raj, steep cuts in fiscal deficit and tariffs, and devaluation of the Rupee.
- With four policy measures, the economy was pulled out of a crisis and placed on a new growth path.
- The key to 1991 was the political articulation of a vision that went beyond platitudes.
What is there in the PM’s vision statement?
- The PM’s vision statement had four elements.
- First, a step up in public spending and investment, aimed at promoting the welfare and raising the investment rate.
- Second, policy reforms aimed at making the domestic economy more globally competitive.
- Third, a long-term structural shift making the economy more “self-reliant” and less dependent on the world economy.
- The fourth wheel of this new growth engine will be Lockdown Model 4 that is to be announced in a few days.
Commitment of political leadership: key to spending and investment
- Increased public spending will certainly boost demand and generate employment in the short term and add to infrastructure capacity in the medium term.
- Policy reform, including changes in land, labour and other policies, could yield results in the medium term.
- But for now, investors will wait and watch to test the sincerity and efficiency of governments at the Centre and in the states.
- They will wait to see how the various policy steps being announced by the FM get implemented — how quickly and how efficiently.
- The government can meet with success if investors, consumers and other economic agents believe in the commitment of the political leadership and the capability of the administration to deliver.
Focus on the self-reliance
- PM has said that his version of self-reliance does not imply isolationism and inward-orientation.
- His version of self-reliance will inject greater self-confidence in the people by reducing the country’s dependence on other nations.
- Theotonio Dos Santos, defined dependence as a situation in which a country’s economy is “conditioned by the development and expansion of another economy”.
- He said that to be self-reliant the growth process of an economy “should not become dominated or dependent on another economy”.
So, on which economies is India excessively dependent?
- 1. The oil-exporting economies.
- Oil and gas account for a bulk of India’s imports.
- Whatever new sources of energy India may tap in the foreseeable future, it will remain import-dependent for energy.
- Fortunately, for India, the global crude oil and gas markets are likely to remain buyers’ markets for some time to come.
- 2. Dependence on foreign exchange.
- Second is the dependence on foreign exchange inflows both in the form of remittances, mainly from the Gulf and the US, and financial flows into capital markets.
- It is not clear how the new Modi strategy of self-reliance proposes to deal with this dependence.
- If anything, India is seeking more FDI and external debt.
- 3. Defence equipment.
- The third dependence is on imported defence equipment, mainly from Russia, the US, Israel and France.
- 4. Electronic and pharmaceuticals.
- Fourth, import dependence in electronic goods and pharmaceuticals, mainly from China.
- Thus far, government policy does not address these dependencies.
- The immediate focus of PM’s self-reliance seems to be China.
How to turn import dependence into import power?
- Post-Deng Xiaoping China established long ago that for a large economy, it is possible to be both self-reliant and globalised at the same time.
- Trade in itself does not create dependence if a country is able to grow both exports and imports.
- China has demonstrated the geo-economic power of both exports and imports by making trade partners dependent on it on both counts.
- When China refuses to buy wine and beef from Australia, it is using its import power, not demonstrating its import dependence.
- If an economy is willing to live without those imports or can substitute them with domestic production, then it is not badly hurt.
So, what are the lessons for India?
- It is export dependence that can make even a large economy vulnerable.
- It is China’s dependence on US markets that President Donald Trump has aimed to reduce by waging a trade war.
- India has never had such export dependence on any one country.
- Indian government’s hope that multinational companies exiting China will relocate to India can only make India more export-dependent since these MNCs aim to sell globally.
- Making India less dependent on China cannot be the only measure of self-reliance.
Consider the question “For India, it is not trading dependence that makes India vulnerable but the inadequacy of its human capital. Comment”
Conclusion
For India to be truly self-reliant and self-confident, public investment in education, human capability and research and development has to increase.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Changes in labour laws and growth in the economy.
Recently several State governments made changes in their labour laws and removed or expanded limits on working hours and changed several other provisions. The article argues that the move may not be as beneficial as it is thought to be. So, how come the changes turned out to be detrimental to the interests of the workers? and what are the other issues involved? Read to know more…
What changed laws mean?
- Uttar Pradesh introduced an ordinance that has scrapped most labour law for three years.
- This was done ostensibly for two reasons- 1) creating jobs and 2)for attracting factories exiting China.
- These laws deal with -the occupational safety, health and working conditions of workers, regulation of hours of work, wages and settlement of industrial disputes.
- They apply mostly to the economy’s organised (formal) sector, that is, registered factories and companies, and large establishments in general.
- Madhya Pradesh and Gujarat have quickly followed suit.
- Reportedly, Punjab has already allowed 12-hour shifts per day.
Why it is not a good move?
- Significantly, migrant labour will be critical to restoring production once the lockdown is lifted.
- In fact, factories and shops are already staring at worker shortages.
- Instead of encouraging workers to stay back or return to cities by ensuring livelihood support and safety nets, State governments have sought to strip workers of their fundamental rights.
- The abrogation of labour laws raises many constitutional and political questions.
- Scrapping labour laws to save on labour costs will not help start the economy but will do exactly the opposite.
- It will reduce wages, lower earnings (particularly of low wage workers) and reduce consumer demand.
- Further, it will lead to an increase of low paid work that offers no security of tenure or income stability.
- It will increase informal employment in the formal sector instead of encouraging the growth of formal work.
Demand is a reason for the slowdown
- There are no inherent shortages at the moment as the inflation rate remains moderate.
- Before the lockdown, the annual GDP growth rate had plummeted to 4.7% during October-December quarter of 2019-20, from 8.3% in the full year of 2016-17.
- The slowdown is due to lack of demand, not of supply, as widely suggested.
- With massive job and income losses after the lockdown, aggregate demand has totally slumped, with practically no growth.
- Therefore, the way to restart the economy is to provide income support and restore jobs.
- This will not only address the humanitarian crisis but also help revive consumer demand by augmenting incomes.
2 concerns over the rationale of scrapping laws
- The rationale for scrapping labour laws to attract investment and boost manufacturing growth poses two additional questions.
- One, if the laws were in fact so strongly pro-worker, they would have raised wages and reduced business profitability.
- But the real wage growth (net of inflation) of directly employed workers in the factory sector has been flat (2000-01 to 2015-16).
- This is because firms have increasingly resorted to casualisation and informalisation of the workforce to suppress workers’ bargaining power.
- Two, it is not right to blame the disappointing industrial performance mainly on labour market regulations.
- Industrial performance is not just a function of the labour laws.
- The industrial performance also depend on the size of the market, fixed investment growth, credit availability, infrastructure, and government policies.
- In fact, there is little evidence to suggest that amendment of key labour laws by Rajasthan and Madhya Pradesh in 2014 took them any closer to their goal of creating more jobs or industrial growth.
- The role of labour market regulations may be more modest than the strong views expressed against them in the popular debates.
Time to rationalise the labour laws
- India’s complex web of labour laws, with around 47 central laws and 200 State laws, need rationalisation.
- However, now more than ever before, reforms need to maintain a delicate balance between the need for firms to adapt to ever-changing market conditions and workers’ employment security.
- Depriving workers of fundamental rights such as freedom of association and the right to collective bargaining, and a set of primary working conditions such as adequate living wages, limits on hours of work and safe and healthy workplaces, will create a fertile ground for the exploitation of the working class.
- Presently, over 90% of India’s workforce is in informal jobs.
- These informal jobs have no regulations for decent conditions of work, no provision for social security and no protection against any contingencies and arbitrary actions of employers.
Consider the question “There is a rising demand for reforms in the labours laws in India. Examine the issues with the current labour laws in India. Suggest the areas which require improvements “
Conclusion
The changes made by the State governments should not end up doing more harm than good. To ensure that there must be a careful calibration of the move and its consequences.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MGNREGA
Mains level: Paper 3- Employment issues caused due to economic disruption of the pandemic.
The article suggests ways to revive the economy while keeping in mind the livelihood issues of the vulnerable section of society. Urgent concern should be addressed by the food and cash transfer, after that for livelihood in the rural area MGNREGA can be of great help. In the urban area, a scheme based on the lines of MGNREGA is suggested. In the end, some ways to increase revenue are suggested.
Food and cash transfers
- Providing every household with ₹7,000 per month for a period of three months and every individual with 10 kg of free foodgrains per month for a period of six months is likely to cost around 3% of our GDP (assuming 20% voluntary dropout).
- This could be financed immediately through larger borrowing by the Centre from the Reserve Bank of India.
- The Centre should also clear outstanding Goods and Services Tax compensation.
- Food and cash transfer are doable for the following reasons.
- First, foodgrains are plentiful, as the Food Corporation of India had 77 million tonnes, and rabi procurement could add 40 million tonnes.
- Second, because of the lockdown restrictions multiplier effect would be less. (so, fewer concerns about inflation)
- Third, cash transfers in many spheres will only enable current demand to continue (such as payment of house rent to continue occupancy) and not create any fresh demand.
- Fourth, when greater normalcy finally allows demand held back during lockdown to the surface, output could also expand because of resumed economic activity.
- Finally, putting money in the hands of the poor is the best stimulus to an economic revival, as it creates effective demand and in local markets.
- Hence, an immediate programme of food and cash transfers must command the highest priority.
Need for changes in MGNREGA
- Millions of migrant workers have gone back home, and are unlikely to return to towns in the foreseeable future.
- Employment has to be provided to them where they are, for which the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) must be expanded greatly and revamped with wage arrears paid immediately.
- The 100-day limit per household has to go.
- Work has to be provided on demand without any limit to all adults.
- And permissible work must include not just agricultural and construction work, but work in rural enterprises and in care activities too.
- The revamped MGNREGS could cover wage bills of rural enterprises started by panchayats, along with those of existing rural enterprises, until they can stand on their own feet.
- This can be an alternative strategy of development, recalling the successful experience of China’s Township and Village Enterprises (TVEs).
- Public banks could provide credit to such panchayat-owned enterprises and also assume a nurturing role vis-à-vis them.
- Pandemic highlighted unsustainability of the earlier globalisation.
- Which means that growth in India in the coming days will have to be sustained by the home market.
- Since the most important determinant of growth of the home market is agricultural growth, this must be urgently boosted.
- The MGNREGS can be used for this, paying wages for land development and farm work for small and medium farmers.
- Also the government support through remunerative procurement prices, subsidised institutional credit, other input subsidies, and redistribution of unused land with plantations is possible.
- Agricultural growth in turn can promote rural enterprises, both by creating a demand for their products and by providing inputs for them to process.
- Both these activities would generate substantial rural employment.
Focus on urban area
- In urban areas, it is absolutely essential to revive the Micro, Small and Medium Enterprises (MSMEs).
- Simultaneously, the vast numbers of workers who have stayed on in towns have to be provided with employment and income after our proposed cash transfers run out.
- The best way to overcome both problems would be to introduce an Urban Employment Guarantee Programme, to serve diverse groups of the urban unemployed, including the educated unemployed.
- Urban local bodies must take charge of this programme and would need to be revamped for this purpose.
- “Permissible” work under this programme should include, for the present, work in the MSMEs.
- This would ensure labour supply for the MSMEs and also cover their wage bills at the central government’s expense until they re-acquire robustness.
- It should imaginatively also include care work, including of old, disabled and ailing persons, educational activities, and ensuring public services in slums.
The CARE economy: Public health, education, employment
- The pandemic has underscored the extreme importance of a public health-care system, and the folly of privatisation of essential services.
- The post-pandemic period must see significant increases in public expenditure on education and health, especially primary and secondary health including for the urban and rural poor.
- The “care economy” provides immense scope for increasing employment.
- Vacancies in public employment, especially in such activities, must be immediately filled.
- Anganwadi and Accredited Social Health Activists/workers who provide essential services to the population, including during this pandemic, are paid a pittance and treated with extreme unfairness.
- We must improve their status, treat them as regular government employees and give them proper remuneration and associated benefits, and greatly expand their coverage in settlements of the urban poor.
- These could easily come within the total package announced by the Prime Minister, which could be financed by printing money.
- But in the medium term, public revenues must be increased.
- This is not because there is a shortage of real resources which, therefore, has to be taken from other existing uses through taxation.
- Rather, since much-unutilised capacity exists in the economy, the shortage is not of real resources; the government has to just get command over them.
Suggestions to increase public revenue
- A combination of wealth and inheritance taxation and getting multinational companies to pay the same effective rate as local companies through a system of unitary taxation will garner substantial public revenue.
- They will also reduce wealth and income inequalities which have become horrendous.
- A 2% wealth tax on the top 1% of the population, together with a 33% inheritance tax on the wealth they bequeath every year to their progeny, could finance an increase in government expenditure to the tune of 10% of GDP.
- It would be argued that this might cause large financial outflows, which the country can ill-afford.
- Contrarily, even foreign capital is more likely to be attracted to a growing economy than one in sharp decline because of a lack of stimulus.
- Also, a fresh issue of special drawing rights by the International Monetary Fund which India has surprisingly opposed along with the United States would provide additional external resources.
- These additional resources, would suffice to finance the institution of five universal, justiciable, fundamental economic rights:1) the right to food, 2)the right to employment, 3)the right to free public health care, 4)the right to free public education and 5)the right to a living old-age pension and disability benefits.
Consider the question, “The economic disruption caused by the pandemic threatens the progress made on the front of inclusive growth. Suggest the measures to ensure the livelihood of the economically vulnerable section of the society in the aftermath of the pandemic in rural and urban areas.”
Conclusion
The broken economy must be rebuilt in ways to ensure a life of dignity to the most disadvantaged citizen. The ways suggested here shows how to achieve that.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Credit Guarantee Scheme
Mains level: Reviving MSME Sector of India
Finance Minister has announced some details of the Atmanirbhar Bharat Abhiyan economic package. The main thrust of the announcements was a relief to Medium, Small and Micro Enterprises (MSMEs) in the form of a massive increase in credit guarantees to them.
Practice questions:
Q. Discuss the efficacy of various tranches of credit facilities to MSMSEs provided under Atmanirbhar Bharat Abhiyan.
Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.
What is the package about?
- Instead of directly infusing money into the economy or giving it directly to MSMEs in terms of a bailout package, the government has resorted to taking over the credit risk of MSMEs.
- These credit guarantees should help the formal banking system meet the credit demand of the MSME sector (see Chart 2).
What is the credit guarantee scheme for MSMEs?
- Loans to MSMEs are mostly given against property (as collateral) because often there isn’t a robust cash flow analysis available.
- But in times of crisis, like the one currently playing out, property prices fall and this inhibits the ability of MSMEs to seek loans. It also means that banks are less willing to extend loans.
- A credit guarantee by the government helps as it assures the bank that its loan will be repaid by the government in case the MSME falters.
How does it work?
- For instance, if the government provides say a 100% credit guarantee up to an amount of Rs 1 crore to a firm, it means that a bank can lend Rs 1 crore to that firm; in case the firm fails to pay back, the government will make good all of Rs 1 crore.
- If this guarantee was for the first 20% of the loan, then the government would guarantee to pay back only Rs 20 lakh.
Why need credit guarantees?
- Even before the Covid-19 crisis, Indian government finances were in poor health. This pandemic has meant that government revenues will come under further pressure.
- For instance, experts are already talking about a GDP contraction of 5% to 10% in the current financial year. It will result in a revenue loss of anywhere between Rs 5 to 7 lakh crore.
- And yet, this is also the year when employees and firms want the government to help them out financially.
- Banks, quite justifiably, suspect that any new loans will only add to their growing mountain of non-performing assets (NPAs).
- So the government was facing an odd problem: Banks had the money but were not willing to lend to the credit-starved sections of the economy, while the government itself did not have enough money to directly help the economy.
- The solution — credit guarantees — finally chosen by the government is not a new one, because this fiscal conundrum is not a new one either (Chart 3).
Quantum of credit guarantee facilitated by FM
- There are three proposals but the main one is for standard MSMEs — that is, those MSMEs which were running fine until the COVID-19-induced lockdown disrupted their work.
- For these, the government has provided a credit guarantee of Rs 3 lakh crore.
- This is like an emergency credit line, said the Finance Minister, and it is for MSMEs that have an already outstanding loan of Rs 25 crore or those with a turnover less than Rs 100 crore.
- The loans will have a tenure of 4 years and they will have a moratorium of 12 months (that is, the payback starts only after 12 months).
Why Rs 3 lakh crore?
- The total outstanding loan to MSMEs by the banking and NBFC sector is around Rs 16 to 18 lakh crore.
- Assuming that 80% of these loans are working capital loans where there would be a 20% incremental funding needs, that gives an amount of approximately Rs 3 lakh crore.
- So the government is hoping that this credit guarantee will help those MSMEs take out another loan and recover.
- The hope is that since these MSMEs were able to pay back before the crisis, there is no reason why they cannot after the crisis, provided they are given some extra money to survive this period.
What were the other measures?
- There is a subordinate debt scheme, worth Rs 20,000 crore, which will allow loans to MSMEs that were already categorised as “stressed”, or struggling to pay back.
- In this case, the government’s guarantee is not full, but partial.
- The third measure is the creation of a fund with a corpus of Rs 50,000 crore to infuse equity into “viable” MSMEs, thus helping them to expand and grow.
- The government intends to put in Rs 10,000 crore and get others, possibly institutions like LIC and SBI, to fund the remaining amount.
- Then there is a change in the definition of an MSME that was pending for long. Now MSMEs are judged on turnover and there will be no difference between a manufacturing MSME and services MSME.
How far will these measures help?
- The Rs 3 lakh crore credit guarantees are the most substantive announcement as it will most likely have a significant impact.
- It will help MSMEs pay salaries and keep their heads above the water even as the economy slows down.
- This measure is expected to help as many as 45 lakh MSMEs.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Palliative Care
Mains level: Psychosocial impacts of the covid-19 pandemic
The newscard talks about palliative healthcare which may help when the world is reeling under this most unexpected and unprecedented pandemic, COVID-19.
Palliative Care is a promising approach to counter the psychosocial impacts of the COVID-19 outbreak. We can use this as an example to quantify the measures required to improve mental healthcare infrastructure in India.
Social sufferings caused by the pandemic
- COVID-19, because of its unique nature and magnitude has brought in its wake, not only physical illness but more of emotional and social suffering.
- These include- fear, anxiety, uncertainty, loss of loved ones and social distress such as losing jobs and income, inability to move freely to work and other places, frustrations, staying long hours at home and other hardships, all leading to psychological disturbances for many.
What is Palliative Care?
- The literal meaning of the word ‘palliate’ is ‘to alleviate pain — physical and emotional’, meaning, relief of suffering. ‘Suffering’ literally means ‘the state of undergoing pain, distress, or hardship’.
- It is an approach that improves the quality of life of patients and their families facing the problem associated with a life-threatening illness.
- It involves prevention and relief of suffering by means of early identification and impeccable assessment and treatment of pain and other problems, physical, psychosocial and spiritual.
- It is part and parcel of treatment for any patient for any disease at any stage, for any age. It is simply a ‘whole person’ approach to improving health in any patient.
A promising remedy
- ‘Palliative Medicine’ is a medical speciality, which involves the treatment of pain, breathing difficulty and other distressing physical symptoms caused by chronic and life-limiting diseases.
- It also addresses the psychological issues of both patient and family, with the sole aim of improving the quality of life. It is most beneficial when started early in the disease trajectory.
- It is also a form of supportive care, giving that extra layer of support a patient needs, to alleviate suffering, alongside disease treatment even in acute illness.
- In the present scenario, in addition to what physicians are toiling with to cure patients, and the government and health care policies and strategies, palliative care can play a supportive role.
Supportive role
- Distressing physical symptoms like pain, breathing difficulty, restlessness (delirium) and others can be well relieved or palliated with medicines in consultation with the specialists.
- Similarly, skilled counselling is an integral part of the palliative approach.
- It helps address the psychological, social and spiritual issues, which both patient and family are experiencing in the present scenario.
- There is a way of responding to their fears, anxieties and to questions. They rarely need antidepressants when we acknowledge their emotions as normal.
Conclusion
- Active listening is by far the most important part of counselling.
- This care can be availed of from psychologists, specialists in palliative medicine, as well as those from medical organisations who have the expertise and willingness to render their services.
- Hence, Palliative care is the reinstatement of the humane aspects of medical care and is complementary to all medical specialities, a common thread running through the total care of all patients.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Nutrition Report, 2020
Mains level: State of Mother-Child health in India
The Global Nutrition Report 2020 has stated that India is among 88 countries that are likely to miss global nutrition targets by 2025.
UPSC may puzzle you by asking a prelim question like-
With reference to the Global Nutrition Report, which of the following is/are a Global Nutrition Targets?
Visit this link for more graphics related to India: https://globalnutritionreport.org/resources/nutrition-profiles/asia/southern-asia/india/
About the Global Nutrition Report
- The GNR is a report card on the world’s nutrition—globally, regionally, and country by country—and on efforts to improve it.
- It is an independently produced annual stock-take of the state of the world’s nutrition. It is a multi-stakeholder initiative, consisting of a Stakeholder Group, Independent Expert Group and Report Secretariat.
- It was conceived following the first Nutrition for Growth Initiative Summit (N4G) in 2013 and was first published in 2014.
- The report tracks global nutrition targets on maternal, infant and young child nutrition and on diet-related Non-Communicable Diseases adopted by member states of the WHO as well as governments’ delivery against their commitments.
India would miss the targets
- According to the Global Nutrition Report 2020, India will miss targets for all four nutritional indicators for which there is data available, i.e.
1) Stunting among under-5 children,
2) Anaemia among women of reproductive age,
3) Childhood overweight and
4) Exclusive breastfeeding
What are Global nutrition targets?
- In 2012, the World Health Assembly identified six nutrition targets for maternal, infant and young child nutrition to be met by 2025. They are:
1) Reducing stunting by 40% in children under 5 years age
2) Reducing anaemia by 50% among women in the age group of 19-49 years
3) Ensuring a 30% reduction in low-birth-weight
4) Ensuring no increase in childhood overweight,
5) Increasing the rate of exclusive breastfeeding in the first six months up to at least 50% and
6) Reducing and maintaining childhood wasting to less than 5%.
Data on Underweight children
- Between 2000 and 2016, rates of underweight have decreased from 66.0% to 58.1% for boys and 54.2% to 50.1% in girls.
- However, this is still high compared to the average of 35.6% for boys and 31.8% for girls in Asia.
- In addition, 37.9% of children fewer than 5 years are stunted and 20.8% are wasted, compared to the Asia average of 22.7% and 9.4% respectively.
- One in two women of reproductive age is anaemic, while at the same time the rate of overweight and obesity continues to rise, affecting almost a fifth of the adults, at 21.6% of women and 17.8% of men.
Data about India
-
Stunting and wasting among children
- Data: 37.9% of children under 5 years are stunted and 20.8% are wasted, compared to the Asia average of 22.7% and 9.4% respectively.
- Inequity:
-
-
- India is identified as among the three worst countries, along with Nigeria and Indonesia, for steep within-country disparities in stunting, where the levels varied four-fold across communities.
- For example, Stunting level in Uttar Pradesh is over 40% and their rate among individuals in the lowest income group is more than double those in the highest income group at 22.0% and 50.7%, respectively.
- In addition, stunting prevalence is 10.1% higher in rural areas compared to urban areas.
- Overweight and Obesity
- Data: Rate of overweight and obesity continues to rise, affecting almost a fifth of the adults, at 21.6% of women and 17.8% of men.
- Inequity: There are nearly double as many obese adult females than there are males (5.1% compared to 2.7%).
- Anaemia
- One in two women of reproductive age is anaemic.
Inequities in Malnutrition
- The report emphasises on the link between malnutrition and different forms of inequity, such as those based on geographic location, age, gender, ethnicity, education and wealth malnutrition in all its forms.
- Inequity is a cause of malnutrition — both under-nutrition and overweight, obesity and other diet-related chronic diseases.
- Inequities in food and health systems exacerbate inequalities in nutrition outcomes that in turn can lead to more inequity, perpetuating a vicious cycle, says the report.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Paddy cultivation in India
Farmers are now being encouraged to adopt ‘direct seeding of rice’ (DSR) in place of conventional transplanting due to lack of labourers, who are stranded due to lockdown.
Recall the classification of cropping seasons on India based on onset and retreat of Monsoon.
The kharif crops include rice, maize, sorghum, pearl millet/bajra, finger millet/ragi (cereals), arhar (pulses), soyabean, groundnut (oilseeds), cotton etc. The rabi crops include wheat, barley, oats (cereals), chickpea/gram (pulses), linseed, mustard (oilseeds) etc. Kindly make a note of this.
What is ‘Direct Seeding of Rice’ (DSR)?
- In transplanting, farmers prepare nurseries where the paddy seeds are first sown and raised into young plants.
- These seedlings are then uprooted and replanted 25-35 days later in the main field.
- Paddy seedlings are transplanted on fields that are “puddled” or tilled in standing water using tractor-drawn disc harrows.
- In DSR, there is no nursery preparation or transplantation. The seeds are instead directly drilled into the field by a tractor-powered machine.
How is the question of herbicides addressed in DSR?
- Paddy being very much water-intensive is compromised by weeds that compete for nutrition, sunlight and water.
- Water prevents the growth of weeds by denying them oxygen in the submerged stage, whereas the soft ‘aerenchyma tissues’ in paddy plants allow air to penetrate through their roots.
- Water, thus, acts as a herbicide for paddy. The threat from weeds recedes once tillering is over; so does the need to flood the fields.
- In DSR, water is replaced by real chemical herbicides. Farmers have to only level their land and give one pre-sowing irrigation or rauni.
- Once the field has good soil moisture, they need to do two rounds of ploughing and planking (smoothening of soil surface), which is followed by the sowing of the seeds and spraying of herbicides.
What are these herbicides?
- There are two kinds. The first is called pre-emergent, i.e. applied before germination. In this case, the pre-emergent herbicide used is Pendimethalin.
- The second set of herbicides is post-emergent, sprayed 20-25 days after sowing, depending upon the type of weeds appearing.
- They include Bispyribac-sodium (Rs 600-700 at 100 ml/acre) and Fenoxaprop-p-ethyl (Rs 700-800 at 400 ml/acre).
What is the main advantage of DSR?
- The most obvious one is water savings. The first irrigation (apart from the pre-sowing rauni) under DSR is necessary only 21 days after sowing.
- This is unlike in transplanted paddy, where watering has to be done practically daily to ensure submerged/flooded conditions in the first three weeks.
- The second savings, relevant in the present context, is that of labour. About three labourers are required to transplant one acre of paddy at almost Rs 2,400 per acre.
- As against this, the cost of herbicides under DSR will not exceed Rs 2,000 per acre.
Limitations of DSR
- The main issue is the availability of herbicides.
- The seed requirement for DSR is also higher, at 8-10 kg/acre, compared to 4-5 kg in transplanting.
- Further, laser land levelling, which costs Rs 1,000/acre, is compulsory in DSR. This is not so in transplanting.
- The yields are as good as from normal transplanting, but one need to sow by the first fortnight of June. The plants have to come out properly before the monsoon rains arrive.
- There is no such problem in transplanting, where the saplings have already been raised in the nursery.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Integrated Battle Groups (IBG)
Mains level: Need for IBG
The Army’s new concept of agile Integrated Battle Groups (IBG) as part of the overall force transformation will be operationalised very soon, confirmed Army Chief.
Practice question for mains:
The deployment of Integrated Battle Groups (IBG) is necessary for counter-insurgency operations across the terror hit borders of India. Discuss.
What are IBGs?
- IBGs are brigade-sized, agile, self-sufficient combat formations, which can swiftly launch strikes against an adversary in case of hostilities.
- Each IBG would be tailor-made based on Threat, Terrain and Task and resources will be allotted based on the three Ts.
- They need to be light so they will be low on logistics and they will be able to mobilise within 12-48 hrs based on the location.
- An IBG operating in a desert needs to be constituted differently from an IBG operating in the mountains.
- The key corps of the Army is likely to be reorganized into 1-3 IBGs.
Objective of IBG
- Holistic integration to enhance the operational and functional efficiency, optimize budget expenditure, facilitate force modernization and address aspirations
Structure
- While a command is the largest static formation of the Army spread across defined geography, a corps is the largest mobile formation.
- Typically each corps has about three brigades.
- The idea is to reorganise them into IBGs which are brigade-sized units but have all the essential elements like infantry, armoured, artillery and air defence embedded together based on the three Ts.
- The IBGs will also be defensive and offensive. While the offensive IBGs would quickly mobilise and make a thrust into enemy territory for strikes, defensive IBGs would hold ground at vulnerable points or where enemy action is expected.
Why need IBGs?
- After the terrorist attack on the Parliament, the Indian military undertook massive mobilization but the Army’s formations which deep inside took weeks to mobilise losing the element of surprise.
- Following this, the Army formulated a proactive doctrine known as ‘Cold Start’ to launch swift offensive but its existence was consistently denied in the past.
- Its existence was acknowledged for the first time by Gen Rawat in January 2017.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: JAM
Mains level: Paper 3- Issues associated with JAM and options to deal with them.
JAM Trinity is one of the flagship policy of the government. In times of COVID crisis, this article highlights some limits of JAM trinity. Issues of inclusion error, exclusion error and even problem of transparency with JAM accounts are discussed. The NREGA cards instead of Jan Dhan account is suggested as the better option. Why is it so? Read to know more…
High hopes from JAM
- The original formulation, in 2015, mentioned two possible forms of the JAM trinity: mobile banking and post office payments.
- The second option never made much progress.
- So, Aadhaar-enabled mobile banking became the supreme goal.
- In January 2017, NITI Aayog CEO Amitabh Kant predicted the imminent demise of all cash-transfer paraphernalia other than mobiles.
- These hopes reached new heights as the JAM project latched on to another flourishing narrative, universal basic income (UBI).
- If you want to make cash transfers to everyone, what better platform can you have than Aadhaar, India’s unique biometric ID, doubling up as a permanent financial address?
Corona crisis belied the hopes from JAM
- In the early days of the crisis, JAM was often invoked sometimes along with UBI as a possible tool of emergency relief.
- But when the time actually came to make cash transfers to the poor, JAM turned out to be of little use.
- The JAM had not gone beyond some fancy digital-payment systems for the privileged.
- Poor people were still running from pillar to post to collect their meagre benefits from old-fashioned bank accounts.
- Some also use the services of “business correspondents”, but those have little to do with JAM.
- Sure enough, long bank queues and related hardships started to emerge, especially in rural areas where the density of banks is relatively low.
- In a Dalberg survey conducted last month in 10 states, only 25% of poor households reported that it was “easy” to access cash benefits.
NREGA job Cards: A better option than Jan Dhan Account
- The lead cash-relief measure in the national relief package consists of monthly transfers of ₹500 to women’s JDY accounts.
- But is that a good idea?
- Let’s compare women’s JDY accounts with another possible basis for cash transfers, at least in rural areas: the list of households that have a National Rural Employment Guarantee Act (NREGA) job card.
- The numbers of accounts are roughly comparable: about 14 crore for NREGA job cards, and 12 crore or so for women’s JDY accounts in rural and semi-urban.
JDY approach fares poorly on the following 3 counts
1. Lack of transparency and clarity
- JDY accounts are a mighty mess – the NREGA job-cards list is far more transparent and well-organised.
- During the frantic initial JDY wave, in 2014-15, banks opened JDY accounts en masse to meet the targets. Banking norms were not followed always.
- Later on, a large proportion of JDY accounts – 40% in March 2017, down to 19% in January 2020– went “dormant” as customers were unable or unwilling to use them.
2. Large exclusion error
- The cash transfers to women’s JDY accounts are likely to involve large exclusion errors.
- According to a recent Yale study, less than half of poor adult women have a JDY account, an even lower proportion, 21%, know that they have a JDY account.
- The NREGA job-card list is likely to have much better coverage of poor households.
- The natural complementarity between NREGA and social security pensions covering more than four crore persons under the National Social Assistance Programme alone would further help to reduce exclusion errors.
3. Large inclusion error
- Inclusion errors are also likely to be larger in the JDY approach.
- Job cards are meant for rural workers, JDY accounts are for everyone.
- National Election Studies 2019 data show that JDY beneficiaries tend to be better-off than NREGA beneficiaries. ( and still, they would get benefits i.e. inclusion error)
- Earlier survey data suggest that the probability of having a JDY account is more or less the same for poor and non-poor households.
Comparison on reliability basis
- There have been significant issues e.g. delayed, rejected, blocked or diverted payments with NREGA payments, often related to Aadhaar.
- But then, numerous “direct benefit transfer” schemes –social security pensions, scholarships, maternity benefits, among others have faced similar problems, also reflected in official transaction data.
- Both the Aadhaar Payment Bridge System(APBS) and the Aadhaar-enabled Payment System (AePS) are shot through with technical glitches.
- Transfers to women’s JDY accounts are unlikely to be more reliable than transfers to job-card holders.
Cash in hand option
- As far as effective payment is concerned, there is a further argument in favour of the NREGA job-cards list.
- Unlike JDY accounts, it lends itself to the “cash-in-hand” method on-the-spot payment in cash, instead of bank payments as a possible fallback.
- The reason is that the job-cards list is a transparent, recursive household list with village and gram panchayat identifiers, while the list of JDY accounts is an opaque list of individual bank accounts.
- Cash-in-hand may seem like the antithesis of JAM, but this option may become important in the near future if the banking system comes under further stress.
- There are precedents of effective use of the cash-in-hand method, notably in Odisha for pension payments, and in various states for NREGA wage payments.
- Several states including Andhra Pradesh, Odisha and Tamil Nadu have already resorted to cash-in-hand for relief payments during the lockdown.
Consider the question, ” The need for financial inclusion is far more in times of corona crisis. Discuss opportunities and challenges with respect to policies like JAM trinity during corona pandemic. Suggest other alternatives for such transfers.”
Conclusion
There is nothing compelling about the use of women’s JDY accounts for cash relief. In fact, it is a bit of a shot in the dark. The government do well to consider other options for further relief majors, including a switch to the NREGA job-cards list in rural areas.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Plan under DMA 2005
Mains level: Paper 2- Cooperative federalism amid Covid-19.
Federalism is part of Basic Structure (Doctrine) of the Constitution. The article is about the lack of cooperative federalism in some of the Central Government’s actions in its fight against the corona crisis. What are those actions? Read to know…
Opinion of political thinkers on federalism in India
- K.C. Wheare notes, federalism traditionally signifies the independence of the Union and State governments of a country, in their own spheres.
- The members of India’s Constituent Assembly carefully studied the Constitutions of other great federations like the US, Canada, Australia and Switzerland.
- However, they adopted a ‘pick and choose’ policy to formulate a system suited uniquely to the Republic’s need.
- As a result, India’s Constituent Assembly became the first-ever constituent body in the world to embrace what H. Birch and others have referred to as ‘cooperative federalism’.
- ‘Cooperative federalism’ is administrative cooperation between the Centre and the States, and a partial dependence of the States upon payments from the Centre.
- Accordingly, Indian constitutional law expert Granville Austin remarks that despite a strong Centre, cooperative federalism doesn’t necessarily result in weaker States.
- He also said that the progress of the Republic rests upon active cooperation between the two.
Lack of consultation with States under DMA 2005
- The zone classifications into ‘red’ and ‘orange’ has evoked sharp criticisms from several States.
- The States have demanded more autonomy in making such classifications.
- The Disaster Management Act of 2005 under which binding COVID-19 guidelines are being issued by the Centre to the States mandates consultation with the States.
- The Act envisages the creation of a ‘National Plan’ under Section 11, as well as issuance of binding guidelines by the Centre to States under Section 6(2), in furtherance of the ‘National Plan’.
- The ‘National Plan’ then is a broader vision document while the binding guidelines are its enforcement mechanism.
- Now, Section 11(2) of the Act mandates State consultations before formulating a ‘National Plan’.
- And when such binding guidelines are ultimately issued under it, they are expected to represent the views of the States.
- However, the Centre has not formulated the ‘National Plan’, and has chosen instead to respond to COVID-19 through ad hoc binding guidelines issued to States.
- Such guidelines thereby circumvent the legislative mandate of State consultations.
- This selective application of the Act serves to concentrate all decision-making powers with the Centre.
Lack of funds
- The Centre has declared that corporations donating to PM-CARES can avail CSR exemptions, but those donating towards any Chief Minister’s Relief Fund cannot.
- This directly disincentivises donations to any Chief Minister’s Relief Fund.
- And diverts crores in potential State revenues to PM-CARES; and makes the States largely dependent upon the Centre.
- Further, the revenue streams of several States have dried up because of the liquor sale ban; negligible sale of petrol/diesel; no land dealings and registration of agreements.
- States’ GST collections have also been severely affected with their dues still not disbursed by the Centre.
- All this has made it difficult for States to defray expenses of salaries, pensions and welfare schemes.
- As it is the States which act as first responders to the pandemic, supplying them with adequate funds becomes a pre-requisite in effectively tackling the crisis.
- This requires the Centre to view the States as equals, and strengthen their capabilities, instead of increasing their dependence upon itself.
Consider the question-“Cooperative federalism is the key in the country’s fight against the corona pandemic. Critically examine.”
Conclusion
Keeping the spirit of cooperative federalism alive whether in consultation with the States or taking care of their finances is essential as the country is fighting the pandemic. The Centre must realise that we have the best chance of winning the war against pandemic when we are united.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: DMA 2005, Residuary power of the Union legislature.
Mains level: Paper 2- Issues arising out of the use of the DMA 2005 to deal with the pandemic.
This article analyses the legal basis of application of the Disaster Management Act to deal with the pandemic by the Central Government. The Disaster Management Act had been enacted using the residuary power of the Union legislature. So, its application to deal with the pandemic gives rise to certain legal issues. Read to know more about such issues.
Two examples of why centralised approach may be counter-productive?
- One, the Central government has classified all districts in the country as red, orange or green zones.
- This classification was done in a bid to lift lockdown restrictions in an area-specific manner.
- Some States/Union Territories objected to the classification of certain areas/districts as red zones on the ground that these areas are very large.
- They pointed out that there was no need to keep economic activity on hold in an entire district when cases had been reported only from a small portion of that district.
- Two, Kerala, probably the best-performing State in terms of its response to COVID-19, was sent a missive by the Central government to refrain from relaxing restrictions in the State.
- The Central government did not trust the wisdom and judgment of the State government in the matter.
The federal scheme and residuary power to legislate
- Under the federal scheme, Parliament can legislate on matters under the Union List (List I).
- Stage legislatures can legislate on matters under the State List (List II).
- And both Parliament and State legislatures can legislate on matters under the Concurrent List (List III).
- The residuary power to legislate on matters that are not mentioned in either List II or List III vests with Parliament under Article 248 of the Constitution read with Entry 97 of List I.
- Furthermore, the rule of harmonious construction dictates that the entries in the legislative lists must be interpreted harmoniously.
- And in the event of any overlap between two or more entries, the specific subject matter contained in a particular entry must be deemed to have been excluded from another entry which may deal with a more general subject matter.
- Finally, as per Articles 73 and 162, the executive power of the Centre and the States is co-extensive with their respective legislative powers.
- Coextensive legislative and executive power means that the Central and State governments can only take executive actions in matters where Parliament and State legislatures, respectively, have powers to legislate.
So, which list contains Disaster Management?
- Disaster management as a field of legislation does not find mention in either List II or List III.
- Nor does any particular entry in List I specifically deal with this.
- Thus, the Disaster Management Act could only have been enacted by Parliament in the exercise of its residuary powers of legislation under Article 248 read with Entry 97 of List I.
Legal problems in using Disaster Management Act for pandemic
- The Disaster Management Act allows the Centre to issue guidelines, directions or orders to the States for mitigating the effects of any disaster.
- The definition of ‘disaster’ under the Act is quite broad and, literally speaking, would include a pandemic too.
- Such a reading of the Act would vest the Central government with powers to issue directions and guidelines to State governments for dealing with the pandemic in their States.
- However, ‘public health and sanitation’ is a specific field of legislation under Entry 6 of List II.
- This would imply that States have the exclusive right to legislate and act on matters concerning public health.
- Thus, the Centre’s guidelines and directions to the States for dealing with the pandemic trench upon a field of legislation and executive action that is exclusively assigned to the States — public health.
- The Supreme Court has held time and again that federalism is a basic feature of the Constitution and the States are sovereign.
- The Disaster Management Act cannot be applied to pandemics in view of the fact that the power to legislate on public health is vested specifically and exclusively with the States.
- Also, under Entry 29 of List III, both Parliament and State legislatures are competent to legislate on matters involving inter-State spread of contagious or infectious diseases.
- Therefore, theoretically speaking, Parliament would be competent to pass a law that allows the Central government to issue directions to the States to prevent inter-State spread of a disease like COVID-19.
- That law is not the Disaster Management Act which is concerned with disasters in general, and not pandemics in particular.
- ‘Prevention of inter-State spread of contagious and infectious diseases’ being a specific legislative head provided in List III, the same must be deemed to have been excluded from Parliament’s residuary legislative powers.
- Therefore, the Disaster Management Act, which has been enacted under Parliament’s residuary legislative powers, cannot be applied to the prevention of the inter-State spread of contagious and infectious diseases.
Role of Centre under Epidemic Diseases Act 1897
- The Epidemic Diseases Act, 1897, has the objective of preventing “…the spread of dangerous epidemic diseases.”
- However, under this Act, it is the State governments which have the prerogative to take appropriate measures for arresting the outbreak or spread of a contagious or infectious disease in their respective States.
- The Central government’s powers are limited to taking measures for inspecting and detaining persons travelling out of or into the country.
- Even if that Act were to be amended, it would not empower the Central government to issue directions to the States to contain the pandemic within the State.
- It can only deal with the inter-State spread of the disease.
Consider the question, “Use of the Disaster Management Act to deal with the Covid-19 pandemic gave rise to certain legal issues. Examine them.”
Conclusion
Instead of resorting to the Epidemic Diseases Act which gives powers to the States, the Centre has applied the Disaster Management Act. The States are not legally bound to observe the directions/guidelines being issued by the Central government and would be well within their rights to challenge them before the apex court.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kalapani Region
Mains level: India-Nepal relations and the Chinese hinderance
Nepal has protested against India’s inauguration of a Himalayan link road built in a disputed territory which falls at a strategic three-way junction with Tibet and China. Kathmandu claims the highly strategic areas of Limpiyadhura and Kalapani, although Indian troops have been deployed there since the 1962 war.
Practice question for mains:
Q. The India-Nepal bilateral relations these days are increasingly seen through the lens of China factor. Examine.
Kalapani Region
- Mapped within Uttarakhand is a 372-sq km area called Kalapani, bordering far-west Nepal and Tibet.
- A treaty signed between Nepal and British India in 1816 determined the Makhali river, that runs through Kalapani, as the boundary between the two neighbours.
- The Treaty of Sugauli concluded between British India and the Kingdom of Nepal in the year 1816, maps the Makhali river as the western boundary with India but different British maps showed the source of the tributary at different places which was mainly due to underdeveloped and less-defined surveying techniques used at that time.
- However, the river has many tributaries that meet at Kalapani. For this reason, India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.
- While the Nepal government and political parties have protested, India has said the new map does not revise the existing boundary with Nepal.
- India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.
Legal Dimension of Issue
According to International Laws, the principles of avulsion and accretion are applicable in determining the borders when a boundary river changes course.
- Avulsion: It is the pushing back of the shoreline by sudden, violent action of the elements, perceptible while in progress. Also it can be defined as the sudden and perceptible change in the land brought about by water, which may result in the addition or removal of land from a bank or shoreline.
- Accretion: It is the process of growth or enlargement by a gradual buildup. It is the natural, slow and gradual deposit of soil by the water.
If the change of the river course is rapid – by avulsion – the boundary does not change. But if the river changes course gradually – that is, by accretion – the boundary changes accordingly.
Since, the Gandak change of course has been gradual, India claimed Susta as part of their territory as per international laws.
- On several occasions, India has tried to resolve the issue through friendly and peaceful negotiations, but the Nepali leadership has always shown hesitation in resolving the issue.
- In Nepal, the issue has become a tool for arousing strong public sentiment against India. Therefore, resolving the issue may not be in the best interest of Nepal’s domestic politics.
Significance for India
- The Lipu Lekh pass serves strategic importance for India as a key point to monitor Chinese troop movement.
- The link road via Lipulekh Himalayan Pass is also considered one of the shortest and most feasible trade routes between India and China.
- The Nepalese reaction would probably have triggered in response to Chinese assertion.
An undefined boundary claimed by Nepal
- Nepal’s western boundary with India was marked out in the Treaty of Sugauli between the East India Company and Nepal in 1816.
- Nepali authorities claim that people living in the low-density area were included in the Census of Nepal until 58 years ago.
- Five years ago, Nepali Foreign Minister Mahendra Bahadur Pande claimed that the late King Mahendra had “handed over the territory to India”.
- By some accounts in Nepal, this allegedly took place in the wake of India-China War of 1962.
Treaty of Saguali
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Helicopters of the Chinese Army came close to the border during the face-off with the Indian Army near Pangong Tso Lake in Eastern Ladakh last week.
Keep a watch on some facts related to the Pangong Tso Lake like nearby rivers, passes, Ramsar status etc.
Aircraft restricted near LAC
- As per existing agreements between India and China, operation of fighter aircraft and armed helicopters is restricted to a distance from the LAC.
- According to the Agreement on Maintenance of Peace and Tranquility along the LAC in India-China Border Area’ of 1996 combat aircraft (to include fighter, bomber, reconnaissance, military trainer, armed helicopter and other armed aircraft) shall not fly within 10 km of the LAC.
Pangong Tso Lake
- Pangong Tso or Pangong Lake is an endorheic lake in the Himalayas situated at a height of about 4,350 m.
- It is 134 km long and extends from India to the Tibetan Autonomous Region, China.
- Approximately 60% of the length of the lake lies within the Tibetan Autonomous Region.
- The lake is 5 km wide at its broadest point. All together it covers 604 sq.km.
- During winter the lake freezes completely, despite being saline water.
- It is not a part of the Indus river basin area and geographically a separate landlocked river basin.
- Formerly, Pangong Tso had an outlet to Shyok River, a tributary of Indus River, but it was closed off due to natural damming.
- The lake is in the process of being identified under the Ramsar Convention as a wetland of international importance.
- This will be the first trans-boundary wetland in South Asia under the convention.
Back2Basics: India-China Border Dispute
The India-China borders disputes exist between three regions:
1) J&K region
- The Aksai Chin sector which originally was a part of the state of Jammu and Kashmir is claimed by China as part of its autonomous Xinjiang region.
- After the 1962 war, it is administered by China. It is the second-largest Indo-China border area covering over 38000 sq. km. However, it is uninhabited land.
- While India claims the entire Aksai Chin territory as well as the Shaksgam valley (Indian Territory gifted to China by Pakistan), China contests Indian control over Daulat Beg Oldi (a tehsil in Leh south of Aksai China-it is believed to host the world’s highest airstrip).
2) Sikkim region
- China has recognised India’s sovereignty over Sikkim and had initiated the trade at Nathu La pass.
- However, this is the region where the Doklam standoff took place.
3) Arunachal Pradesh Region
- The Arunachal Pradesh border that China still claims to be its own territory is the largest disputed area, covering around 90000 sq. km.
- It was formally called North-East Frontier Agency.
- During the 1962 war, the People’s Liberation Army occupied it but they announced a unilateral ceasefire and withdrew respecting the international boundary (Mcmahon Line).
- However, it has continued to assert its claim over the territory.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Telia Rumal, Sohrai Khovar painting
Mains level: Not Much
Jharkhand’s Sohrai Khovar painting and Telangana’s Telia Rumal were given the Geographical Indication (GI) tag by the Geographical Indications Registry.
This year, many GI tags have been allocated. A few of them to count are- Kashmir saffron, Manipur black rice, Gorakhpur terracotta, Kovilpatti kadalai mittai etc. Check here for more.
Sohrai Khovar painting
- The Sohrai Khovar painting is a traditional and ritualistic mural art being practised by local tribal women in the area of Hazaribagh district of Jharkhand.
- The painting is primarily being practised only in the district of Hazaribagh. However, in recent years, for promotional purposes, it has been seen in other parts of Jharkhand.
- It is prepared during local harvest and marriage seasons using local, naturally available soils of different colours in the area.
- Traditionally painted on the walls of mud houses, they are now seen on other surfaces, too.
- The style features a profusion of lines, dots, animal figures and plants, often representing religious iconography.
- In recent years, the walls of important public places in Jharkhand, such as the Birsa Munda Airport in Ranchi, and the Hazaribagh and Tatanagar Railway Stations, among others, have been decorated with these paintings.
Telia Rumal
- Telia Rumal cloth involves intricate handmade work with cotton loom displaying a variety of designs and motifs in three particular colours — red, black and white.
- The Rumal can only be created using the traditional handloom process and not by any other mechanical means as otherwise, the very quality of the Rumal would be lost.
- During the Nizam’s dynasty, Puttapaka, a small, backward village of the Telangana region of Andhra Pradesh had about 20 families engaged in handloom weaving, who were patronized by rich families and the Nizam rulers.
- The officers working in the court of the Nizam would wear the Chituki Telia Rumal as a symbolic representation of status.
- Telia Rumals were worn as a veil by princesses at the erstwhile court of the Nizam of Hyderabad, and as a turban cloth by Arabs in the Middle East.
Back2Basics: Geographical Indications in India
- A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
- Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
- This tag is valid for a period of 10 years following which it can be renewed.
- Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
- The first product to get a GI tag in India was the Darjeeling tea in 2004.
- The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for protection of GI in India.
- India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
- Geographical Indications protection is granted through the TRIPS Agreement.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Spirulina Groundnut Chikki
Mains level: NA
The Mysuru-based Central Food Technological Research Institute, CFTRI has developed Spirulina groundnut Chikki that can provide micro-nutrients and boost the immunity of people during this time of the pandemic.
Beware, the Chikki so mentioned has no GI tag. What makes it significant is the Spirulina, a photosynthetic bacteria, which is suitable for human consumption.
Spirulina Groundnut Chikki
- It is a snack that provides good micro-nutrients.
- It has used Spirulina as well as the tasty, nourishing groundnuts to prepare Chikki that is rich in micro-nutrients such as Vitamin A, Beta Carotene and easily digestible algal proteins.
- Other nutritious snacks of CFTRI such as Nutri mango fruit bar and cardamom flavoured water is also part of the food items supplied to the migrant labourers.
- The mango bar is rich with carbohydrates, carotene, Vitamin C and Zinc to improve the immunity.
- Cardamom flavoured water with traditional herbs to have immune booster qualities.
What is Spirulina?
- Spirulina is an organism that grows in both fresh and saltwater.
- It is a type of cyanobacteria, which is a family of single-celled microbes that are often referred to as blue-green algae.
- It is used as a dietary supplement or whole food. It is also used as a feed supplement in the aquaculture, aquarium, and poultry industries.
- Just like plants, cyanobacteria can produce energy from sunlight via a process called photosynthesis.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat Abhiyan
Mains level: Significance and need for such a mission
The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.
Try a question:
‘Doubling Farmer’s Income’ and ‘USD 5 trillion economy’ seems more like slogans today in wake of COVID pandemic. Comment on the statement with keeping in view the Atmanirbhar Bharat Abhiyan of the government.
Atmanirbhar Bharat: With a special package
- PM has announced a special economic package and gave a clarion call for Self-reliant India.
- The package will provide a much-needed boost towards achieving self-reliance.
- This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
- The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.
Five pillars of a self-reliant India
PM iterated that a self-reliant India will stand on five pillars viz.
1) Economy, which brings in quantum jump and not incremental change
2) Infrastructure, which should become the identity of India
3) System, based on 21st-century technology-driven arrangements
4) Vibrant Demography, which is our source of energy for a self-reliant India and
5) Demand, whereby the strength of our demand and supply chain should be utilized to full capacity
Is this a new package?
- The PM did not give the details, but he specified that this calculation of Rs 20 lakh crore includes what the government has already announced and the steps taken by the RBI.
- This means the total amount of additional money — that is over and above what the government would have spent even in the absence of a Covid crisis — will not be Rs 20 lakh crore.
- It would be substantially less.
Why?
- That’s because the PM has included the actions of RBI, India’s central bank, as part of the government’s “fiscal” package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy).
- Government expenditure and RBI’s actions are neither the same nor can they be added in this manner.
What did the RBI provide earlier?
- A rough estimate suggests that the RBI’s decisions have provided additional liquidity of Rs 5-6 lakh crore since the start of the Covid-19 crisis.
- Add this to the Rs 1.7 lakh crore of the first fiscal relief package announced by the Centre on March 26. Together, the two already account for 40 per cent of the Rs 20-lakh crore package.
- That leaves an effective amount of Rs 12 lakh crore.
- However, if the government is including RBI’s liquidity decisions in the calculation, then the actual fresh spending by the government could be considerably lower than Rs 12 lakh crore.
- That’s because RBI has been coming out with long term bond-buying operations (long term repo operation or LTRO, to infuse liquidity into the banking system) worth Rs 1 lakh crore at a time.
- If for argument’s sake, RBI comes out with another LTRO of Rs 1 lakh crore, then the overall fiscal help falls by the same amount.
Why shouldn’t RBI’s package be included in the overall package?
- That is because direct expenditure by a government — either by way of wage subsidy or direct benefit transfer or any, immediately and necessarily stimulates the economy.
- In other words, that money necessarily reaches the people — either as someone’s salary or someone’s purchase.
- But credit easing by the RBI — that is, making more money available to the banks so that they can lend to the broader economy — is not like government expenditure.
- That’s because, especially in times of crisis, banks may take that money from RBI and elsewhere and, instead of lending it, park it back with the RBI.
Back2Basics: Long Term Repo Operations (LTRO)
- The LTRO is a tool under which the RBI provides 1-3 year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
- Funds through LTRO are provided at the repo rate.
- But usually, loans with higher maturity period (here like 1 year and 3 years) will have a higher interest rate compared to short term (repo) loans.
- According to the RBI, the LTRO scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) operations.
- The LAF and MSF are the two sets of liquidity operations by the RBI with the LAF having a number of tools like repo, reverse repo, term repo etc.
What are Repo and Reverse Repo rates?
- The repo rate is the rate at which the RBI lends money to the banking system (or banks) for short durations.
- The reverse repo rate is the rate at which banks can park their money with the RBI.
- With both kinds of the repo, which is short for repurchase agreement, transactions happen via bonds — one party sells bonds to the other with the promise to buy them back (or repurchase them) at a later specified date.
- In a growing economy, commercial banks need funds to lend to businesses.
- One source of funds for such lending is the money they receive from common people who maintain savings deposits with the banks. Repo is another option.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CHAMPIONS Portal
Mains level: Not Much
In a major initiative, Union Ministry of MSME has launched CHAMPIONS portal for assisting Indian MSMEs march into the big league as National and Global Champions.
MSME sector has been hit badly by COVID. Initiatives like CHAMPIONS portal are crucial for this sector.
CHAMPIONS Portal
- ‘CHAMPIONS’ is a technology-driven Control Room-Cum-Management Information System.
- The CHAMPIONS is an acronym for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength
- As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.
- It is a technology-packed control room-cum-management information system.
Three basic objectives of the CHAMPIONS
1) How to help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.
2) How to help them capture new opportunities like manufacturing of medical accessories and products like PPEs, masks, etc.
3) How to identify the sparks, i.e., the bright MSMEs who can not only withstand but can also become national and international champions.
Technology imbibed in the portal
- In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning.
- It is also fully integrated on a real-time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web-based mechanisms.
- The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of the ministry’s dumping rooms in record time.
A hub and spoke model of network
- As part of the system, a network of control rooms is created in a Hub & Spoke Model.
- The Hub is situated in New Delhi in the Secretary MSME’s office.
- The spokes will be in the States in various offices and institutions of Ministry.
- As of now, 66 state-level control rooms are created as part of the system.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Articles related to Rajya Sabha.
Mains level: Paper 2- Importance of Rajya Sabha.
This article is about Rajya Sabha, the second chamber of our union legislature. Its utility was intensely debated in the Constituent Assembly. Now, after almost seven decades of its existence, we know that the house has proved its utility. So, what was the reasoning of those who were in support of its creation and what those who opposed its creation had on their mind? How bicameralism is connected to federalism? You’ll come to know the answers to these questions after reading the article.
Historical background
- The Rajya Sabha came into being on April 3, 1952 and held its first session on May 13 the same year.
- The central legislature that came into being under the Government of India Act, 1919 was bicameral.
- Under 1919 Act, Council of States had 60 members and Legislative Assembly had 145 members.
- The membership and voting norms for the Council of States were restrictive.
- These restrictions meant only wealthy landowners, merchants and those with legislative experience could enter it.
- Women could neither vote nor seek membership.
- The Government of India Act, 1935 proposed an elaborate and improved version of the second chamber, but this never materialised.
- The Constituent Assembly, which was formed in 1947, after adoption of the Constitution became the Provisional Parliament and made laws till 1952.
Bicameralism and the utility of second house
- Bicameralism is a principle that requires the consent of two differently constituted chambers of Parliament for making or changing laws.
- This principle came into operation in 1787 with the adoption of the U.S. Constitution.
- At present, 79 Parliaments of the world (41% of the total number) are bicameral.
- In The Federalist, the famous essay, it was stated that the second chamber enables a second and reflective expression of representative opinion besides checking the propensity to yield to the impulse of sudden and violent passions.
- French philosopher Montesquieu who said, “The legislative body being composed of two parts, they check one another by the mutual privilege of rejecting”.
- Walter Bagehot later noted that the retarding chamber will impede minor instances of parliamentary tyranny, though it will not prevent or really impede revolution.
Federalism and link with bicameralism
- Federalism has been in vogue since ancient times when some states got together to confer the power of law-making on a central authority.
- But modern federalism is entirely different given the complexity of geographical, regional, social and economic diversities marking the constituent units of a federation or a union.
- It is more so in India. The U.S. is a federation and so is India — each unit has a set of unique features.
- Federalism and bicameralism are linked because the federal character of a nation comprising constituent units can be reflected in, and secured by, a bicameral legislature.
Debate in the Constituent Assembly over need for the second house
- The proposal for the Rajya Sabha as a second chamber was subjected to serious argumentation and had a narrow escape.
- Opponents’ stand: A member of the Constituent Assembly asserted that an Upper House was not essential and viewed it as a creation of imperialism.
- Other member warned that such a chamber would only prove to be a “clog in the wheel of progress” of the nation.
- The proponents’ stand: A supporter of idea felt that it would introduce an element of sobriety and second thought besides lending voice to the constituent units in the legislative scheme of things.
- Ananthasayanam Ayyangar argued that a second chamber would enable the genius of the people to have full play besides checking hasty legislation.
- Replying to the debate on the motion N. Gopalaswami Ayyangar had to make a strong case for the second chamber.
- He argued that the most that we expect the Second Chamber to do is 1) to hold dignified debates on important issues 2) to delay legislation which might be the outcome of passions of the moment until the passions have subsided.
Consider the question, “Examine the role played by the Rajya Sabha as a law-making body. Do you agree that the Rajya Sabha has been successful in fulfilling the role expected of it by the makers of our Constitution?”
Conclusion
The mandate of the Rajya Sabha, as can be gleaned from the Constituent Assembly debates and the experiences of other Parliaments, is legislation — to revise or delay legislation without proving a clog in the wheel of the progress; to represent the interests of the States as a federal chamber, and be a deliberative body holding high-quality debates on important issues.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Emergency provision dealing with internal disturbance/ Provisions related to ordinances
Mains level: Paper 2- Changes made in labour laws without consultation.
The article examines the changes made in the labour laws by several states. The legal route to make these changes are different. While some states used the Emergency provision, others used the Ordinance route. One major issue with these changes is that these were brought in without consultation.
What legal route was used by the States?
- Changes were made by the several state government in the labour laws dealing with the maximum working hours and other provisions.
- These changes have been made through notifications issued by the State governments and will be applicable for the next three months.
- M.P. has also suspended most provisions of the Industrial Disputes Act, 1946 (except those related to retrenchment and layoffs) for 1,000 days for State undertakings.
- In addition, M.P. issued an ordinance to amend two laws.
- The M.P. Industrial Employment Standing Orders Act will apply to establishments with more than 100 workmen (up from the existing threshold of 50), in line with the Central Act.
- The ordinance also enables the government to exempt establishments from the provision of another Act that provided for a labour welfare fund.
- The Uttar Pradesh government has approved an ordinance that exempts establishments from all labour laws for three years with some exceptions.
- As this will override provisions of some Central laws, it will require the assent of the President or, in effect, the assent of the Central government.
- The question is, was there sufficient consultation before all these changes were made?
Constitutional provisions for the legal route taken: Emergency and ordinance
- As per the Constitution, the legislature has the authority to make laws.
- Such laws could delegate powers to the government which are in the nature of detailing some requirements.
- For example, the Factories Act allows State governments to exempt factories from the provisions of the Act during public emergencies for a maximum period of three months.
- A public emergency is defined as a grave emergency whereby the security of India or any part is threatened by war, external aggression or internal disturbance.
- Most States have used this provision, presumably interpreting the current situation as an ‘internal disturbance’.
- Haryana has used a provision that allows relaxation of work hours “to deal with an exceptional press of work”.
- The Constitution also permits Central and State governments to make laws through the issuance of an ordinance when the legislature is not in session.
- Such a law needs to be ratified by the legislature within six weeks of the beginning of the next session. M.P. and U.P. are using this procedure.
Issues with the changes made
- Usually, any change in an Act follows a rigorous process of public consultation, scrutiny by committees of Parliament, and debates in the House before being approved.
- The changes described here have not gone through such a process.
- However, most of these have a three-month time limit, and any extension would need to be approved by the legislature.
The four labour codes
- The Parliament is consolidating 29 existing laws into four codes dealing with- 1) wages, 2) occupational safety and health, 3) industrial relations,4) social security.
- The first of these has been enacted, the Standing Committee on Labour has submitted the report on the next two, and is examining the last.
- The Code on Occupational Safety and Health does not specify the maximum hours of work but empowers the government to do so.
- The Standing Committee report states that the government agreed to incorporate a provision of maximum eight hours per day with overtime permitted for certain types of industry.
Consider the question “Several States made changes in the labour laws to deal with the problems caused by the corona pandemic. Examine the legal provisions used for making such changes by various States. What are the issues with such changes?”
Conclusion
Given the emergency, the government has to take quick action and change the response as the situation evolves. However, that should not be a reason to exclude the processes of consultation with and scrutiny by elected representatives. The legitimacy of state action in a parliamentary democracy comes from the fact that there is constant oversight and check by elected representatives.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: WTO
Mains level: Paper 3- Changes in trade politics in the US and opportunities for India.
The article focuses on the changes in the US trade politics fueled by the corona pandemic. Also there has been a growing demand for abandoning the WTO. So, amid this shift in the US politics, what are the opportunities for India at the global level?
What went wrong with the WTO: The US point of view
- Latest opposition to the WTO was expressed in a forceful article by a US senator, Josh Hawley.
- In his opinion, corona pandemic expresses the hard truth about the modern global economy: it weakens American workers and empowers China’s rise.
- So, what went wrong?
- Capital and goods moved across borders easier than before but so did jobs. And too many jobs left America’s borders for elsewhere.
- As factories closed, workers suffered, from small towns to the urban core.
- So, he wants US to abandon the WTO.
Rise of trade politics in the US
- Under Trump, the Republican Party has turned from the champion to a critic of free trade.
- The Democratic Party, which embraced globalisation since the early 1990s, has seen the erosion of working-class support.
- Elections this year could reveal if the shifting alignments on trade are now cast in stone or if anti-trade sentiment in America is deep and wide.
What alternatives are suggested by the senator?
- In replacing the WTO, Hawley suggests the following two measures-
- 1) The United States must seek new arrangements and new rules, in concert with other free nations, to restore America’s economic sovereignty.
- 2) This, in turn, involves building a new network of trusted friends and partners to resist Chinese economic imperialism.
How this matters for India?
- India will have to take a fresh look at the global economy battered by the coronavirus.
- India should pay close attention to Hawley’s theme on working with “trusted friends and partners” to restructure international trade.
- Hawley is not alone in articulating this view.
- Reuters reported from Washington that the Trump Administration is “turbocharging” an initiative to rearrange the global supply chains currently centered on China.
- This rearrangement of the global supply chain offers an opportunity for India to lead the future global supply chains.
Consider the question, “Critically analyse the opportunities presented to India by the changes in trade politics in the US”.
Conclusion
Hobbled as it was by shaky political coalitions and preoccupied by multiple domestic challenges, India in the mid-1990s struggled to cope with the profound changes in the global economic order. As the world trade system arrives at a contingent moment a quarter of a century later, India is hopefully better prepared.
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