Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Coal Index
Mains level: NA
Central Idea
- In a recent development, the National Coal Index (NCI) saw a substantial rise in September, marking its first increase since April 2023.
- This surge in the NCI is linked to global coal price fluctuations and holds significant implications for India’s coal sector.
Understanding the National Coal Index (NCI)
- What is it? The NCI is a price index which reflects the change in the price level of coal on a particular month relative to the fixed base year.
- Release: It is released every month by the Ministry of Coal.
- Launch: The NCI was introduced on June 4, 2020, as a tool to monitor coal price fluctuations relative to a fixed base year FY 2017-18.
- Price Indicator: The NCI serves as a crucial price indicator that combines coal prices from various sources, including notified prices, auction prices, and import prices.
- Basis for Premiums: It plays a vital role in determining premium rates, either on a per-tonne basis or through revenue sharing, using a market-based approach.
Components of NCI
- Sub-Indices: NCI comprises five distinct sub-indices, encompassing three for Non-Coking Coal and two for Coking Coal. These sub-indices are amalgamated to derive the final Index for Non-Coking and Coking Coal, making them distinctly separate.
- Customized Revenue Shares: Based on the coal grade associated with a mine, the relevant sub-index is employed to determine the revenue share.
Factors behind the NCI Surge
- Global Price Impact: The recent uptick in the NCI is primarily influenced by a temporary rise in global coal prices, which has reverberated in the Indian coal market.
- Seasonal Demand: With the festive season and winter approaching in India, the demand for coal has risen, prompting coal producers to boost domestic production to meet the growing energy needs.
- Power Sector Growth: India has experienced a surge in coal demand, particularly from the power sector, driven by increased electricity requirements.
- Continued Coal Imports: Power plants have continued to import coal as part of the coal blending mandate set by the power ministry.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: National Security Strategy
Central Idea
- India is embarking on a historic journey as it initiates the development of its inaugural National Security Strategy (NSS).
- The National Security Council Secretariat (NSCS) is actively collecting insights and inputs from diverse Central ministries and departments, laying the foundation for a comprehensive strategy that will play a pivotal role in safeguarding the nation’s interests.
Explained: National Security Strategy
- Crucial Milestone: India’s NSS represents its first-ever comprehensive document that outlines security objectives and strategies.
- Periodically Updated: The NSS evolves over time, addressing both traditional and non-traditional threats while fostering accountability among agencies tasked with implementation.
- Guiding Holistic Security: The NSS will serve as a guiding framework for military, defense, and security reforms, offering a holistic perspective on national security, threats, and strategies to counter them.
Scope and Content of India’s NSS
- Modern Challenges: The NSS is poised to encompass a broad spectrum of contemporary challenges, including financial and economic security, food and energy security, information warfare, critical information infrastructure vulnerabilities, supply chain concerns, and environmental issues.
- Comprehensive Approach: It will adopt a comprehensive approach to tackling emerging threats, aligning with India’s evolving security landscape.
Global Precedents
- Established Nations with NSS: Developed nations with robust military and security infrastructures maintain National Security Strategies, updated periodically. The United States, the United Kingdom, and Russia have published their NSS.
- China’s Comprehensive National Security: China has a closely integrated Comprehensive National Security strategy, tightly linked to its governance structure.
- Pakistan’s National Security Policy: Pakistan recently unveiled a National Security Policy for 2022-2026, outlining its national security objectives and priorities.
India’s Imperative for a National Security Strategy
- Long-Debated Need: The idea of a National Security Strategy for India has long been debated within military circles and the strategic community.
- Urgency in Uncertain Times: Rising geopolitical tensions and the uncertain global environment have heightened the urgency for India to formulate a comprehensive strategy.
- Relevance Highlighted: Experts and former officials emphasize that a national security strategy is vital to provide clear political direction to the Armed Forces, guide military reforms, and address modern security challenges effectively.
Past Attempts and Hurdles
- Failed Attempts: India has previously made three attempts to develop a national security strategy, all without fruition.
- Political Hesitation: Some speculate that hesitation at the political level, driven by concerns about accountability in defense management, may have impeded the strategy’s release.
- Varied Views: There have been differing views within the strategic community regarding the absence of a national security strategy, ranging from a lack of cohesive government efforts to intentional non-disclosure of national security objectives.
Conclusion
- India’s journey towards formulating its National Security Strategy marks a significant milestone in its quest for a well-defined and coordinated approach to security.
- As India forges ahead, this inaugural strategy promises to provide a roadmap for addressing complex security challenges, ensuring national interests are protected, and fostering a secure future in an ever-evolving world.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Road Accidents in India
Central Idea
- A recent government report titled ‘Road Accidents in India – 2022’ has revealed a concerning surge in road accidents, fatalities, and injuries.
- The report sheds light on the grim statistics of road safety in the country.
Road Accidents in India
- The report is based on information provided by police departments of States and Union Territories collected on a calendar year basis.
- Standardized formats from the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) were used for data collection under the Asia Pacific Road Accident Data (APRAD) base project.
Statistical Overview:
- In 2022, India witnessed a total of 4,61,312 road accidents. It resulted in a tragic loss of 1,68,491 lives.
- Additionally, 4,43,366 individuals sustained injuries.
State-Specific Data
- Tamil Nadu recorded the highest number of road accidents on National Highways in 2022 (64,105 accidents or 13.9%).
- Madhya Pradesh followed closely with 54,432 accidents (11.8%).
- Uttar Pradesh reported the highest number of fatalities (22,595 or 13.4%) due to road accidents.
- TN came second with 17,884 fatalities (10.6%).
Why discuss this?
(1) Year-on-Year Increase:
- The report disclosed an alarming year-on-year increase of 11.9% in road accidents.
- Fatalities also rose by 9.4% in the same period.
- The number of injuries surged by a staggering 15.3% compared to the previous year.
(2) Accident Distribution:
- The accidents were distributed across different types of roads as follows:
- National Highways, including Expressways: 32.9% (Fatalities: 36.2%)
- State Highways: 23.1% (Fatalities: 24.3%)
- Other roads: 43.9% (Fatalities: 39.4%)
(3) Demographic Impact:
- Young adults: Mostly between 18 and 45 years old comprised a significant portion, accounting for 66.5% of road accident victims in 2022.
- Working People: Within the working age group of 18 to 60 years represented 83.4% of total road accident fatalities.
(4) Rural vs. Urban Accidents:
- Approximately 68% of road accident fatalities occurred in rural areas.
- Urban areas accounted for 32% of total accident deaths in the country.
(5) Vehicle Categories
- Two-wheelers remained the most prominent vehicle category involved in road accidents and fatalities for the second consecutive year.
- Light vehicles, including cars, jeeps, and taxis, ranked a distant second.
What global reports have to say?
- A recent analytical series published by The Lancet highlights the potential to reduce road accident-related deaths in India and other countries by 25 to 40%.
- This reduction is achievable through preventive interventions that target four key risk factors.
Major issues identified
In developing countries like India, several structural problems persist:
- High Speed: Excessive speed contributes to accidents.
- Driving Under the Influence: Alcohol-impaired driving poses a substantial risk.
- Unplanned Motorization: Rapid motorization and urbanization create challenges.
- Highway Development: Speedy highway construction often lacks accommodation for diverse traffic speeds.
- Vehicle Conditions: Ramshackle vehicles, wrong-side driving, and inadequate traffic policing are widespread issues.
India-specific Problems
- Weak Law Enforcement: Inconsistent enforcement of traffic laws, often resolved through bribery.
- Speeding: Higher vehicle speeds and increased traffic volume on highways.
- Engineering Challenges: Gaps in highway medians, untreated intersections, and missing crash barriers.
- Behavioural Issues: Violations such as wrong-side driving, lane misuse, and traffic light disobedience.
- Lack of Immediate Trauma Care: Insufficient trauma care on highways leading to higher fatalities.
Steps Taken by India
India has undertaken various measures to address road safety concerns:
- Sundar Committee (2007): India lacks competent investigation units to determine accident causes.
- Amendment to Motor Vehicles Act (2019): Legislative changes, though not uniformly implemented across states.
- National Road Safety Board: Establishment with advisory powers for safety reforms.
- World Bank Support: Approval of a $250 million loan for the India State Support Programme for Road Safety.
Challenges in Implementation
Despite efforts, the focus remains conventional, with limited emphasis on structural changes:
- User Behavior Focus: States prioritize user behavior and education over structural improvements.
- Low Emphasis on Engineering Standards: Inadequate attention to raising engineering standards for roads, signage, signals, and accident investigation training.
- Responsibility Fixation: Neglect in assigning responsibility to government departments for road infrastructure design, creation, and maintenance.
Way forward
- Promoting awareness and responsible behaviour.
- Better road design, maintenance, and signage.
- Strictly enforcing traffic rules and penalties.
- Ensuring vehicle safety and roadworthiness.
- Enhancing first aid and paramedic care in Golden Hour.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: State Food Safety Index (SFSI)
Mains level: Read the attached story
Central Idea
- Four years after the Food Safety and Standards Authority of India (FSSAI) introduced a state-wise index to encourage improvements in food safety, alarming trends have emerged.
- A significant number of large Indian states have witnessed a drop in their food safety scores in 2023 compared to 2019.
- This analysis delves into the details of these findings, highlighting the key parameters, their weights, and how the states fared.
Understanding the State Food Safety Index (SFSI)
- FSSAI has developed the State Food Safety Index to measure the performance of states on various parameters of Food Safety.
- It was first rolled in 2018-19.
- This index is based on the performance of the State/ UT on five significant parameters set by the Health Ministry, namely
- Human Resources and Institutional Data
- Compliance
- Food Testing – Infrastructure and Surveillance
- Training & Capacity Building and
- Consumer Empowerment
- In 2023, a new parameter, ‘Improvement in SFSI Rank,’ was added, altering the weightages of existing parameters to maintain a total score of 100.
- The Index is a dynamic quantitative and qualitative benchmarking model that provides an objective framework for evaluating food safety across all States/UTs.
Highlights of the 2023 Report
[A] Steepest Decline in Scores:
- Maharashtra: Witnessed the most significant drop, with a score of 45 in 2023 compared to 74 in 2019.
- Bihar: Scored 20.5 in 2023, down from 46 in 2019.
- Gujarat: Recorded a score of 48.5 in 2023, a sharp decline from 73 in 2019.
[B] Key Parameter Findings:
- Food Testing Infrastructure: Witnessed the most substantial decline, with the average score dropping to 7 out of 17 in 2023 from 13 out of 20 in 2019.
- Compliance: Received the highest weightage in 2023 but experienced a drop in scores for states like Jharkhand, Punjab, Himachal Pradesh, Madhya Pradesh, and Bihar.
- Consumer Empowerment: Scored the highest in Tamil Nadu, while Bihar saw a significant decrease in this parameter.
- Human Resources and Institutional Data: Experienced a decline in scores for states like Tamil Nadu and Uttar Pradesh.
- Training and Capacity Building: Recorded an improvement, with the average score increasing to 5 out of 8 in 2023 from 3.5 out of 10 in 2019.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Periodic Labour Force Surveys (PLFS)
Mains level: Read the attached story
Central Idea
- The Periodic Labour Force Surveys (PLFS) have diligently monitored the gender earnings gap in India from April-June 2019 to 2023.
- This latest iteration places a vital spotlight on weekly hours worked, unveiling that the inequity in total earnings may not fully encapsulate the true narrative.
Examining the Gender Earnings Disparities
- Claudia Goldin’s Pioneering Work: Building upon Nobel laureate Claudia Goldin’s research, India’s gender disparities in employment and wages come into focus.
- Earnings Converted to Weekly Figures: Earnings for various worker categories are transformed into weekly earnings.
- Ratio of Weekly Earnings: Table 1 displays the ratio of weekly earnings between men and women at the national level, encompassing rural and urban sectors. A figure above 1 denotes men earning more than women.
- Persistent Gender Gap: Men out-earn women across all forms of work, with the self-employed experiencing the most significant gender gap in 2023, where men earned 2.8 times more than women. In contrast, male regular wage workers earned 24% more, and male casual workers earned 48% more than their female counterparts. The gender earnings gap remains a persistent challenge.
- Changing Trends: Notably, the gender gap has increased for self-employed workers but decreased for regular wage workers, dropping to 24% in 2023 from 34% in 2019.
Analyzing Average Weekly Work Hours
- Incomplete Picture: Disparities in earnings per unit of work are not entirely elucidated by the earnings gap alone. Women consistently work fewer hours than men across all forms of employment, as depicted in Table 2.
- Largest Gap for the Self-Employed: In 2023, men in self-employment worked 50% more hours than women, while the gap was the smallest for regular wage workers (19%).
- Rising Gender Gap in Hours Worked: The gender gap in hours worked has expanded, particularly for self-employed women, indicating an increase in part-time employment among them. Simultaneously, male self-employed workers continue full-time work.
Diving Deeper into Hourly Earnings Gap
- Hourly Earnings Analysis: Calculations of hourly earnings for each worker category reveal the ratio between men and women’s hourly earnings, as presented in Table 3.
- Significant Reduction in Regular Wage Workers’ Gap: In 2023, men in regular wage employment earned 24% more than women over the week but worked 19% longer hours. The hourly earnings gap narrows to approximately 4%, down from 11% in 2019.
- Hourly Earnings Parity in Regular Wage Work: On average, women in regular employment earn less per week but nearly match men when hourly earnings are considered. However, these averages mask nuanced disparities across occupations and industries.
- Higher Inequality in Other Employment Types: Inequality in hourly earnings is more pronounced in other work categories, albeit lower than when assessing total earnings. In 2023, male casual workers earned 23% more per hour than women, a reduction from 33% in 2019. Conversely, the self-employed category witnessed an increase in the hourly earnings gap from 84% in 2019 to 87% in 2023.
Factors Influencing Work Hours
- Beyond Pure Choice: Lower hourly earnings inequality for regular wage workers doesn’t imply women opt for shorter work hours by choice.
- Societal barriers: Barriers, such as societal expectations that women manage domestic and childcare duties, may limit their employment options.
Conclusion
- Addressing both remuneration disparities and disparities in total work hours is crucial.
- Policymakers should target the removal of barriers that curtail women’s working hours.
- This involves workplace interventions like mandating childcare facilities and extended maternity leaves and broader societal transformations that challenge traditional gender norms and share childcare and domestic responsibilities more equitably.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Food Production stats
Mains level: Read the attached story
Central Idea
- Recent data from the agriculture ministry has revealed that India achieved record-high food production in the 2022-23 fiscal year.
- However, this surge in production appears to be at odds with the government’s decision to restrict the export of key staples like wheat and rice, as well as the persistent trend of rising food inflation.
Food Production Statistics
- Record-High Food Production: The agriculture ministry estimates food production for 2022-23 at a historic 329.7 million tonnes, marking a 4.5% increase from the previous year.
- Cereal Production: Major cereal production, including rice and wheat, rose by 4.9% and 2.6%, respectively. Coarse grain production surged by 12%, while pulses production experienced a 4.4% year-on-year decline but remained 6% higher than the five-year average.
- Challenges Faced: These estimations were made despite adverse conditions such as subpar monsoons affecting rice output and late rains causing damage during crop harvesting.
Inconsistencies in the Data
- Export Curbs: In September 2022, India imposed export curbs on broken rice and imposed a 20% duty on certain varieties due to expected domestic production challenges. These curbs have since intensified.
- Wheat Export Ban: Last year, a miscalculation of wheat harvest, primarily due to a heatwave, led to export bans in May 2022, despite promises to bridge global supply gaps after Russia’s invasion of Ukraine.
- Rising Food Prices: Despite record production and export restrictions, retail prices for cereals have continued to surge. Wheat and rice prices have been in double digits, with consumer cereal prices up by 11% year-on-year, and pulses registering a 16.4% increase. As of October 21, retail prices for rice and wheat flour were 12.7% and 5% higher year-on-year, respectively.
Prospects for 2023-24
- Kharif Production Estimate: The first advance estimate for kharif production, typically released in September, is yet to be published. This year’s monsoon, with the lowest rainfall in five years and uneven distribution, is expected to impact rice production, the main kharif crop.
- Pulses and Oilseeds: Additionally, reduced rainfall in several states may affect pulses and oilseeds production. Retail prices for specific pulse varieties like tur (pigeon peas) have already surged by 38% compared to the previous year.
Challenges in Robust Crop Estimations
- Reliability of Data: National crop yield estimates rely on crop-cutting experiments conducted by state revenue and agriculture departments, raising concerns about the accuracy of data collection, particularly in understaffed state departments.
- Remote Sensing: India is using remote sensing to cross-verify the data, yet reliability remains a challenge, especially for crops with multiple harvests.
- Horticulture Crops: Estimating yield for horticulture crops, which are harvested in stages, is even more complex than for food grains.
Conclusion
- India’s agricultural landscape presents a perplexing scenario with record-high food production, export restrictions, and stubborn food inflation.
- The government’s efforts to stabilize prices through export curbs have not yielded the expected results.
- As India navigates the complexities of its agricultural sector, it must address the discrepancies in data collection and explore innovative approaches to ensure accurate estimates and sustainable food security.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: OBCs, Various commissions mentioned
Mains level: Read the attached story
Central Idea
- The recent publication of Bihar’s caste survey results has sparked discussions about the possibility of similar exercises in other states as India enters a new electoral cycle.
- Enumerating castes and sub-categorizing Other Backward Classes (OBCs) for equitable reservation distribution have long been contentious issues.
Who are Other Backward Classes (OBCs)?
- Origins of OBCs: OBCs represent communities and castes considered socially and educationally backward, distinct from Scheduled Castes (SCs) and Scheduled Tribes (STs).
- Constitutional Mandate: The Indian Constitution mandates affirmative action for OBCs through Articles 15(4) and 16(4), enabling special provisions and reservations.
Diverse Categories within OBCs
- Occupational Classification: OBCs have historically been identified based on their occupations, including land ownership, farming, labor, and artisanal work.
- Two Broad Categories: OBCs can be broadly categorized into landowners (e.g., Yadavs and Kurmis in Bihar and Uttar Pradesh) and non-landowners.
- Inequality Concerns: A demand for reservation within OBCs has emerged, as a few “upper” OBCs have reportedly benefitted disproportionately from the existing 27% reservation, a result of the Mandal Commission’s recommendations over 30 years ago.
EBCs in Bihar
- EBC Identification: Bihar’s caste survey identified 27% of the population as “pichhda” (backward) and 36% as “atyant pichhda” (Extremely Backward Classes, or EBCs).
- Historical Context: The state had previously categorized castes as “more backward,” and the Karpoori Thakur Formula, implemented in the 1970s, offered reservation benefits to various groups, including OBCs, economically backward OBCs, women, and the economically disadvantaged from “upper castes.”
Historical OBC Commissions
- Kaka Kalekar Commission (1953): Established in 1953, it recommended identifying socially and educationally backward classes and 25-40% reservation in government jobs.
- Mandal Commission (1979): Appointed in 1979 but implemented in 1990, it identified 3,743 OBC castes, suggested 27% reservation in government jobs and educational institutions, and proposed no sub-categorization.
State-specific Subcategorization
- Diverse State Approaches: Various states have implemented subcategorization within their OBC quotas based on unique criteria.
- Examples: Andhra Pradesh, Karnataka, Jharkhand, West Bengal, Maharashtra, Tamil Nadu, and Kerala have subgroups within their OBC reservations.
Subcategorization at the National Level
- Subcategorization Initiative: In 2015, the Ministry of Social Justice and Empowerment tasked the National Commission for Backward Classes (NCBC) with examining the subcategorization of OBCs.
- NCBC’s Recommendation: The NCBC proposed subcategorization into Extremely Backward Classes, More Backward Classes, and Backward Classes.
Recent Developments: Rohini Commission
- In October 2017, the Rohini Commission was formed to explore OBC subcategorization.
- It submitted its report in July 2023, although its contents remain undisclosed.
Conclusion
- The issue of caste enumeration and subcategorization of OBCs in India reflects complex social and political dynamics.
- While it aims to ensure equitable distribution of reservation benefits, it also highlights the need for nuanced, state-specific approaches to address the diverse composition of OBC communities.
- The recent report by the Rohini Commission holds potential significance, but its implications and recommendations await public scrutiny and debate.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Hunger Index
Mains level: Read the attached story
Central Idea
- India has been ranked 111th out of 125 countries in the Global Hunger Index-2023, a stark decline from its 107th position in 2022.
- The index highlights a concerning statistic – India reports the world’s highest child wasting rate at a staggering 18.7 percent.
- Interestingly, India’s neighboring countries, including Pakistan (102nd), Bangladesh (81st), Nepal (69th), and Sri Lanka (60th), have performed comparatively better in the index.
Global Hunger Index (GHI)
|
| Publication |
Jointly published annually by Concern Worldwide and Welthungerhilfe. |
| Scale |
Measures hunger on a 100-point scale, with 0 as the best (no hunger) and 100 as the worst score. |
| Purpose |
Comprehensively measures and tracks hunger globally, regionally, and at the country level. Aims to trigger action to reduce hunger worldwide. |
| Indicators |
4 key indicators for each country:
1. Undernourishment (reflects inadequate food availability): Share of the population that is undernourished.
2. Child Wasting (reflects acute undernutrition): Share of children under five with low weight for their height.
3. Child Stunting (reflects chronic undernutrition): Share of children under five with low height for their age.
4. Child Mortality (reflects inadequate nutrition and unhealthy environment): Mortality rate of children under five. |
Hunger in India: Fact Check
- Serious Hunger Levels: India’s score of 28.7 in the Global Hunger Index-2023 places it in the “serious” category, according to the report.
- Child Wasting: India’s child wasting rate, the proportion of undernourished children measured by weight relative to their height, stands at an alarming 18.7 percent, signaling acute undernutrition.
- Undernourishment Rate: The rate of undernourishment in India is reported at 16.6 percent, further highlighting the gravity of the issue.
- Child Mortality: Under-five mortality in India is recorded at 3.1 percent.
- Anemia Among Women: The report underscores a significant concern, with 58.1 percent of women aged 15 to 24 in India being affected by anemia.
A report to bully India
- Disputed Ranking: The Indian government has rejected the GHI 2023 ranking, citing serious methodological concerns and suggesting a malicious intent behind the report (considering elections).
- Methodological Issues: The WCD Ministry asserts that the GHI 2023 report suffers from significant methodological issues. It contends that 3 out of 4 indicators used for calculation pertain to child health, which does not represent the entire population.
- Sample size issue: It is questionable that only small sample size of 3,000 is used for the “Proportion of Undernourished Population” indicator for crores population in India.
- Child Wasting Discrepancy: The ministry highlights a significant disparity between the child wasting rate as per the Poshan Tracker (consistently below 7.2 percent) and the 18.7 percent reported in GHI 2023.
- Undue link with Child mortality: It also challenges the notion that child mortality is solely an outcome of hunger.
Conclusion
- India’s ranking underscores the persistent challenges in addressing hunger and undernutrition.
- The report serves as a stark reminder of the critical need to comprehensively tackle these issues, especially child wasting and undernourishment, to ensure the well-being of the nation’s population.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Periodic Labour Force Survey (PLFS)
Mains level: Not Much
Central Idea
- The latest findings from the Periodic Labour Force Survey (PLFS), conducted by the National Sample Survey Office (NSSO), reveal a decrease in India’s unemployment rate for the period between April and June 2023.
- This encouraging trend is accompanied by improvements in the Labour Force Participation Rate (LFPR) and the Worker-Population Ratio (WPR), signifying positive shifts in the country’s labor market.
About Periodic Labour Force Survey (PLFS)
| Objective |
Collect comprehensive labor market data in India. |
| Conducted by |
Ministry of Statistics and Programme Implementation (MoSPI), Government of India. |
| Replacement for |
Replaced earlier employment-unemployment surveys by NSSO. |
| Frequency |
Conducted periodically, with rounds typically spanning a year. |
| First Round |
Conducted in July 2017-2018, marking the survey’s initiation. |
| Data Categories |
Employment status, unemployment rate, sector-wise employment, income, demographics, and more. |
| Sampling Methodology |
Sample survey approach with data collected from households and individuals through a scientific sampling process. |
| Policy Impact |
Informs government policies related to employment, labor market interventions, and economic planning. |
2022-23 Survey Overview
- Scope: The national survey compiled data from 5,639 first-stage sampling units (FSUs) and encompassed 1,67,916 individuals residing in 44,190 urban households.
- Age Group: The survey focused on individuals aged 15 years and above.
Improvements in Urban Labour Force Participation
- LFPR Uptick: The LFPR in urban areas exhibited growth, rising from 47.5% in April-June 2022 to 48.8% in the corresponding months of 2023 for individuals aged 15 years and above.
- Gender Disparities: While the LFPR remained stable at approximately 73.5% for males during this period, it notably increased for females, climbing from 20.9% to 23.2%.
Enhanced Worker-Population Ratio
- WPR Gains: In urban areas, the WPR increased from 43.9% in April-June 2022 to 45.5% during the same period in 2023 for individuals aged 15 years and above.
- Gender-Specific Improvements: For males, the WPR progressed from 68.3% to 69.2%, and for females, it surged from 18.9% to 21.1% over this timeframe.
Decrease in Unemployment Rate
- Declining Unemployment: The PLFS reported a diminishing trend in the Unemployment Rate (UR) for individuals aged 15 years and above in urban areas.
- UR in Urban Areas: It decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023.
- Gender-Based UR: For males, the UR dropped from 7.1% to 5.9%, while for females, it decreased from 9.5% to 9.1% during this period.
Comparative Analysis
- Positive Trends: The report highlights improvements in key labor market indicators in urban areas when compared to the pre-pandemic period (April-June 2018 to October-December 2019).
- LFPR Improvement: The LFPR ranged from 46.2% to 47.8% during the pre-pandemic period and has now reached 48.8%.
- WPR Enhancement: Pre-pandemic WPR figures ranged from 41.8% to 44.1%, while the current WPR stands at 45.5%.
- Lower UR: Unemployment rates during the pre-pandemic period fluctuated between 7.8% and 9.7%, with the latest survey reporting a lower UR of 6.6%. This rate is deemed favorable compared to the unemployment rates observed in the quarters preceding the pandemic.
Conclusion
- The Periodic Labour Force Survey (PLFS) results reflect positive developments in India’s labor market, marked by a decreasing unemployment rate, improved labor force participation, and enhanced worker-population ratios.
- These trends indicate a resilient labor market recovery and may signify the nation’s progress towards economic stability and job creation.
Back2Basics:
- Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in labour force (i.e. working or seeking or available for work)in the population.
- Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
- Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
- Activity Status- Usual Status: The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period. When the activity status is determined on the basis of the reference period of last 365 days preceding the date of survey, it is known as the usual activity status of the person.
- Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Purchasing Managers' Index (PMI)
Mains level: Not Much
Central Idea
- India’s manufacturing sector experienced a slowdown in September, reaching a five-month low, according to the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI).
- The PMI eased to 57.5 from August’s 58.6. A reading of 50 reflects no change in activity levels.
Purchasing Managers’ Index (PMI)
- PMI is an indicator of business activity — both in the manufacturing and services sectors.
- It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
- The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
How is the PMI derived?
- The PMI is derived from a series of qualitative questions.
- Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
How does one read the PMI?
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate.
- If it is lower than the previous month then it is growing at a lower rate.
Analysis and Outlook
- Mild Slowdown: The manufacturing industry in India showed mild signs of a slowdown in September, primarily due to a softer increase in new orders, which tempered production growth.
- Positive Outlook: Despite the slowdown, both demand and output saw significant improvements, and manufacturers maintained a strongly positive outlook for production.
- Job Creation and Input Stocks: Upbeat forecasts continued to drive job creation efforts and initiatives to replenish input stocks, indicating a favourable trajectory for the Indian manufacturing industry.
- Concerns: However, the solid increase in output charges, despite easing cost pressures, could limit sales in the coming months, prompting caution.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bihar Caste Census
Mains level: Issues with Caste Censuses
Central Idea
- The Bihar government recently released the results of its caste survey, shedding light on the state’s demographic composition and caste dynamics.
- This survey, the first of its kind since 1931, carries significant implications for politics, reservations, and electoral strategies in Bihar.
Bihar Caste Survey
- Caste Demographics: The survey reveals the following caste composition in Bihar:
-
- Extremely Backward Classes (EBCs) – 36.01%.
- Other Backward Classes (OBCs) – 27.12%.
- Scheduled Castes (SCs) – 19.65%.
- Scheduled Tribes (STs) – 1.68% (most STs are part of Jharkhand since 2000).
- “Unreserved” (Forward Castes) – 15.52%.
- Population Increase: Bihar’s population, according to the survey, is 13,07,25,310, compared to 10.41 crores recorded in the 2011 census. Hindus make up 81.99%, while Muslims constitute 17.72%. Other religious denominations have minuscule populations.
Survey Process
- Political Consensus: The decision to conduct the caste survey was made following an all-party meeting in June 2022, with a budget allocation of Rs 500 crore from the contingency fund.
- Survey Phases: The survey occurred in two phases:
-
- The first phase involved counting households in January.
- The second phase, starting in April, aimed to collect caste, religion, economic, and family data.
- Legal Challenge: The Patna High Court initially halted the survey, but it later resumed after the state clarified it was a “survey” and ensured data privacy.
Significance
- Changing Political Landscape: The politics of identity tied to reservations and backward caste assertion has evolved. The BJP’s appeal to OBCs has transformed the political landscape.
- Opportunities for Backward Classes: Survey results may provide an opening for parties like JD(U) and RJD to mobilize backward classes. The Opposition alliance could use this data to push for a nationwide caste census.
- Increased Quotas: The survey could fuel demands for expanding OBC quotas beyond 27% and creating sub-quotas for EBCs. The recommendations of the Justice Rohini Commission are expected to influence this debate.
- Reservation Ceiling Debate: The data may reignite discussions on the 50% reservation ceiling imposed by the Supreme Court in 1992, a contentious issue in various states.
Electoral Impact
- Vote Bank Dynamics: EBCs, OBCs, and SCs, constituting over 82% of Bihar’s population, will be a crucial vote bank in upcoming elections.
- Leadership Dynamics: Leaders like Lalu Prasad and Nitish Kumar have historically represented OBCs, EBCs, and Dalits. The BJP’s electoral strategy in Bihar will likely emphasize the Prime Minister’s OBC background.
- Electoral Battles: Political parties will fiercely compete for the support of these influential caste groups, making Bihar a battleground state with complex caste dynamics.
Why discuss this?
- Caste Data in Census: Since India’s independence in 1947, every census until 2011 has published data on Scheduled Castes and Scheduled Tribes. Caste data was available in censuses before 1931.
- 1941 Exception: In 1941, caste-based data was collected but not published due to World War II, as per M.W.M. Yeats, the Census Commissioner at that time.
Demand for a Caste Census
- Recurring Demand: The demand for a caste census surfaces before almost every census, primarily driven by groups belonging to Other Backward Classes (OBC) and other deprived sections, while it faces opposition from upper-caste sections.
- Contemporary Demand: In recent times, opposition parties, especially during Census 2021 delays, have vociferously called for a caste census, focusing on “social justice” as a common rallying point.
- Political Support: Many politicians have advocated for the release of data from the Socio-Economic and Caste Census (SECC) 2011. They also called for a caste census and the removal of the 50% cap on SC/ST/OBC reservations.
Centre’s Stand
- Government Policy: The Indian government has consistently decided not to enumerate caste-wise populations, except for SCs and STs, as a matter of policy.
- Policy Shift: However, in August 2018, following a meeting chaired by then-Home Minister, it was stated that data on OBCs would be collected during Census 2021.
- RTI Response: When questioned about the meeting’s minutes, the Office of Registrar General of India (ORGI) claimed they did not maintain records of deliberations on this matter before the Ministry of Home Affairs’ announcement.
Conclusion
- A caste-based census is against the idea of a casteless society envisaged by leaders like Babasaheb Ambedkar in the Constitution and will weaken ongoing efforts to create social harmony.
- While proponents argue for better representation and targeted policies, opponents emphasize the importance of moving towards a casteless society.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: New Education Policy, 2020
Mains level: Read the attached story
Central Idea
- The Parliament Standing Committee on Education presented a report during a special parliamentary session focused on the “Implementation of the National Education Policy (NEP), 2020 in Higher Education.”
Report Highlights
- Salient NEP Features: The report examined the key aspects of NEP’s application in higher education and assessed the progress achieved thus far. The committee engaged with representatives from State governments, Union Ministries, higher education institutions, and stakeholders to compile the report.
- State’s Role: The report emphasized the significance of State governments, as approximately 70% of the country’s 1,043 universities operate under State Acts. Furthermore, 94% of students are enrolled in State or private institutions, while only 6% attend Central higher educational institutions.
Key Issues Discussed
- Rigid Disciplinary Separation: The committee addressed issues such as the inflexible division of disciplines in higher education.
- Limited Access in Disadvantaged Areas: It acknowledged the limited access to higher education in socio-economically disadvantaged regions.
- Language of Instruction: The report highlighted the dearth of higher education institutes (HEIs) offering education in local languages.
- Faculty Shortage: The committee noted the shortage of faculty members in HEIs.
- Lack of Autonomy: Concerns about institutional autonomy and insufficient emphasis on research were also raised.
- Regulatory System: The report identified the regulatory system as ineffective and criticized low standards of undergraduate education.
Recommendations
- Expansion of Multidisciplinary HEIs: The committee recommended that by 2030, every district in India should have at least one multidisciplinary higher education institution.
- Enrolment Ratio Increase: It called for increasing the Gross Enrolment Ratio in higher education, including vocational education, from 26.3% in 2018 to 50% by 2035.
- Socially and Economically Disadvantaged Groups (SEDGs): Actions proposed included allocating suitable funds for SEDGs, setting higher enrolment targets for SEDGs, improving gender balance in HEI admissions, offering more financial assistance and scholarships, ensuring inclusive admission processes and curricula, enhancing employability potential of higher education programs, and developing courses taught in regional languages and bilingually.
- Infrastructure for Physically Challenged: Specific infrastructural enhancements were recommended to support physically challenged students, along with strict enforcement of non-discrimination and anti-harassment rules.
- NEP Implementation in Jammu and Kashmir: The committee commended Jammu and Kashmir for its prompt implementation of NEP in all higher educational institutions from the 2022 academic session. It noted positive changes in teaching methods leading to enhanced lifelong learning opportunities for students.
Funding Enhancement and Diversification
- Effective Use of HEFA: The committee suggested improving the Higher Education Financing Agency (HEFA) to enhance funding for HEIs.
- Diversified Funding Sources: It advised HEFA to diversify funding sources beyond government allocations by exploring partnerships with private sector organizations, philanthropic foundations, and international financial institutions.
- Loan Interest Rates: The committee recommended reviewing and adjusting interest rates on loans provided by HEFA to make them more competitive and affordable for HEIs.
Concerns about MEME Program
- Feasibility Challenges: The panel raised concerns about the feasibility of implementing the multiple entry and multiple exit (MEME) system in Indian institutions.
- Predictability Issues: MEME’s flexible structure, effective in Western educational institutions, might pose challenges in the country. Predicting student entry and exit numbers could disrupt the pupil-teacher ratio.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST Appellate Tribunal
Mains level: Not Much
Central Idea
- The Finance Ministry has formally established 31 Appellate Tribunals spanning 28 States and eight Union Territories for the Goods and Services Tax (GST).
- This significant move aims to address the increasing number of taxpayer disputes with the Revenue Department.
What is GST Appellate Tribunal?
- The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
- It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
- The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
- The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.
Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):
- Adjudicating Authority
- Appellate Authority
- Appellate Tribunal
- High Court
- Supreme Court
Need for such Tribunal
- Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month-old indirect tax regime that are now clogging High Courts and other judicial fora.
- Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
- Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
- Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.
Issues with present litigation
- Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
- Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
- Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.
Significance
- The creation of these tribunals had been in the pipeline since the implementation of the GST regime on July 1, 2017.
- The number of pending appeals by taxpayers related to central GST levies had surged to over 14,000 (June 2023).
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Circular Economy , E-Waste
Mains level: Read the attached story
Central Idea
- The Indian Cellular and Electronics Association (ICEA) recently released a report titled ‘Pathways to Circular Economy in Indian Electronics Sector.’
- This report, developed in collaboration with NITI Aayog, explores the possibilities of harnessing electronic waste (e-waste) to create a circular economy in India’s electronics sector.
- It highlights the significant market potential, estimated at $7 billion that could be unlocked through effective e-waste management.
Current State of E-Waste Management in India
- Predominantly Informal: E-waste management in India is primarily informal, with approximately 90% of e-waste collection and 70% of recycling handled by a competitive informal sector.
- Role of Informal Sector: The informal sector excels in salvaging components from older devices and profiting from repairs. Industrial hubs like Moradabad witness the extraction of precious metals like gold and silver from printed circuit boards (PCBs).
- Government Efforts: The Union Government introduced the E-Waste (Management) Rules, 2022, to digitize and provide visibility into e-waste movement. However, the informal sector remains a dominant force in e-waste management.
Significance of a Circular Economy
- Growing Demand: The demand for electronics is increasing across all price segments, resulting in resource-intensive production and high emissions.
- Circular Economy Philosophy: A circular economy aims to reintroduce discarded electronics, their components, and precious metals back into the electronics ecosystem, reducing waste and promoting resource efficiency.
- Wealth Creation: Viewing materials as resources rather than waste can lead to wealth creation.ry.
Recycling E-Waste
- Public-Private Partnerships: The ICEA report suggests public-private partnerships to establish a comprehensive “reverse supply chain.” This chain would involve collecting devices, wiping personal data, and further processing and recycling.
- Auditable Database: Creating an auditable database of materials collected through this process and forming geographical clusters for device disassembly are proposed.
- High Yield Recycling Centers: Incentivizing high-yield recycling centers is recommended to extract maximum value from electronic products.
- Promoting Repair: Encouraging repair and extending product lifespans, possibly through support for a right-to-repair by users, can reduce the environmental impact of e-waste.
Challenges in E-Waste Management
- Informal Sector: The large and competitive informal sector is difficult to track and regulate, making adherence to environmental norms challenging.
- Device Stockpile: An estimated 200 million devices remain unused in consumers’ homes, as people are concerned about their personal data when recycling devices.
- Capital Intensive: Establishing large-scale recycling plants requires substantial capital investment, with challenges in securing stable materials.
- Material Scarcity: Securing materials to stabilize recycling plants is a complex issue, as materials are scattered and supply chains are unpredictable.
- Transition from Informal to Formal: Replicating the success of the informal sector in a formalized and reliable manner remains a significant challenge.
Conclusion
- The transformation of e-waste management into a circular economy is a promising venture for India’s electronics sector.
- While the informal sector currently dominates this landscape, there is a growing need to formalize and regulate e-waste management.
- The challenges are substantial, but with the right policies, public-private collaborations, and incentives, India can harness the $7 billion market opportunity and promote resource efficiency in its electronics sector.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Periodic Labour Force Survey (PLFS)
Mains level: Read the attached story
Central Idea
- The Periodic Labour Force Survey (PLFS) in 2017 revealed India’s highest-ever recorded unemployment rate at 6.1%.
- The 2021-22 PLFS indicated a reduction to 4.1%, still higher than some developed economies like the U.S., where unemployment rates varied from 3.5% to 3.7% between July 2022 and July 2023.
- Comparing India and the U.S. unemployment rates is complex due to their vastly different economies.
About Periodic Labour Force Survey (PLFS)
| Established |
2017 (The PLFS was initiated in 2017 as part of the larger National Sample Survey (NSS) program) |
| Administered by |
National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, Government of India |
| Objective |
To collect data on labor force participation, employment, and unemployment in India. |
| Key Data Collected |
– Workforce Participation
– Employment Types and Sectors
– Unemployment
– Demographic and Socioeconomic Characteristics |
| Significance |
Provides vital information for policymaking, research, and analysis related to the labor market in India. |
| Frequency |
Periodic surveys conducted at regular intervals. |
Defining Unemployment
- Unemployment, as per the International Labour Organization (ILO), involves being jobless, available for work, and actively seeking employment.
- The unemployment rate is the ratio of the unemployed to the labor force, but it can decrease if the economy lacks job creation or people stop job hunting.
Measuring Unemployment in India
- In developing economies, like India, social norms can limit job search decisions.
- The 2009-10 National Sample Survey Organisation (NSSO) survey revealed that many women who engaged in domestic work would work if opportunities were available within their households but are not considered unemployed since they aren’t actively seeking jobs.
- Measuring unemployment in India is complicated due to the informal job market, where individuals hold various roles throughout the year.
Different Metrics for Classification
- The Usual Principal and Subsidiary Status (UPSS) and the Current Weekly Status (CWS) are two major measures for classifying individuals in India.
- UPSS considers an individual employed even if they worked for more than 30 days in a subsidiary role.
- CWS counts an individual as employed if they worked at least one hour on one day within the past week.
- UPSS typically yields lower unemployment rates than CWS since finding work over a year is more likely than in a week.
Impact of Informal Economy
- The low bar for classifying individuals as employed means that unemployment rates are lower in rural areas than urban regions in agrarian economies.
- Definitions may ‘underestimate’ unemployment but are designed to capture the informal economy’s nuances.
The Lockdown Effect
- The lockdown in March 2020 disrupted the Indian economy, but PLFS unemployment rates did not reflect this immediately.
- UPSS status may still consider those who lost jobs during the lockdown as employed if they spent most of the previous year working.
- CWS criteria show higher unemployment rates due to shorter reference periods but may not fully capture the long-term impact of the lockdown when aggregated across different periods.
Conclusion
- Unemployment is becoming a significant factor in upcoming elections, making it crucial to understand its definition and measurement complexities in developing economies.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Maritime Infrastructure Perspective Plan (2023-37)
Mains level: Not Much
Central Idea
- The Maritime Infrastructure Perspective Plan (MIPP) 2023-37 was unveiled at the Naval Commanders Conference.
- It signifies a forward-looking strategy aimed at fostering sustainable maritime architecture.
About MIPP
- Aligned with the overarching vision of the PM Gati Shakti project, this comprehensive plan was introduced by the Minister of State for Defence.
- The plan’s objectives span over the next 15 years and strive to synergize the Navy’s infrastructure requirements in a dynamic and encompassing model.
Features of the MIPP
- Synchronizing Infrastructure Needs:
- The MIPP 2023-37 envisions an integrated approach to address the Navy’s infrastructure requirements.
- It aims to harmonize naval infrastructure development over the next 15 years through a meticulously designed perspective plan.
- Compliance with Broader Policies:
- The plan adheres to the broader policy directives of the PM Gati Shakti Project, Disaster Resilience, and Transition to Net Zero, among others.
- Sustainability and compliance with national policy priorities are key principles underpinning the plan’s formulation.
- Modernization Efforts:
- To accommodate technological advancements and promote self-reliance, the revised “IRS Rules and Regulations Handbook for Construction and Classification of Naval Combatants” was introduced.
- This handbook reflects the naval shipbuilding industry’s growth and aligns with the philosophy of ‘AatmaNirbharta’ (self-reliance).
- Transformational Initiatives:
- The release of the “Family Logbook for Defence Civilian Personnel of the Indian Navy” serves as a milestone in maintaining personal records efficiently.
- The launch of the “Electronic Service Document Project” is poised to revolutionize HR record-keeping within the Navy.
Facts/Terms for UPSC Prelims
- PM Gati Shakti Project: A government initiative aimed at enhancing infrastructure connectivity and development across various sectors, contributing to economic growth and national development.
- Indian Register for Shipping (IRS): An organization responsible for ship classification and certification in India, ensuring that ships comply with international standards for safety and environmental performance.
- Blue Economy: Economic activities related to oceans and water bodies, including fisheries, aquaculture, tourism, and shipping, which contribute significantly to a nation’s economy.
- Geoeconomics: The study of how economic factors and policies influence international relations and geopolitics.
- Geopolitics: The study of political and territorial issues influenced by geographical factors and international power dynamics.
Conclusion
- The Maritime Infrastructure Perspective Plan 2023-37 stands as a blueprint for India’s maritime progress, exemplifying the commitment to self-reliance, sustainability, and modernization.
- With a focus on comprehensive development and adherence to national policies, the plan charts a course towards a stronger, more resilient naval infrastructure.
- It aligns with the evolving security landscape and the broader objectives of the nation.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Multidimensional Poverty Index (MPI
Mains level: Read the attached story
Central Idea
- PM highlighted a significant milestone achieved during his government’s first 5-year term – the liberation of 13.5 crore Indians from the clutches of multidimensional poverty.
- This achievement, as substantiated by the National Multidimensional Poverty Index (MPI) report, reflects the government’s commitment to improving the lives of millions across various dimensions of well-being.
Understanding Multidimensional Poverty Index (MPI)
- Holistic Evaluation: The MPI gauges deprivations across health and nutrition, education, and standard of living, offering a comprehensive assessment of poverty that extends beyond traditional monetary measures.
- Three Dimensions: Health is evaluated through nutrition, child and adolescent mortality, and maternal health. Education encompasses years of schooling and school attendance. The standard of living is assessed through variables like sanitation, drinking water, and access to financial services.
- Technical Collaborators: The methodology behind India’s MPI draws inspiration from the Oxford Poverty and Human Development Initiative (OPHI) and the UN Development Programme (UNDP), with OPHI and UNDP collaborating to formulate the national index.
Notable Achievements and Data
- Decline in Poverty: The poverty headcount ratio – the proportion of multidimensionally poor individuals – witnessed a remarkable drop from around 25% to under 15% between the periods of National Family Health Survey (NFHS)-4 (2015-16) and NFHS-5 (2019-21).
- Significant Impact: This reduction signifies that a staggering 13.5 crore Indians liberated themselves from multidimensional poverty during this period.
Comparison with Historical Records
- Historical Context: The MPI’s multidimensional nature makes direct comparisons with India’s traditional poverty estimations challenging. However, the Global MPI 2023 report underscores that 415 million Indians emerged from poverty between 2005-06 and 2019-21.
- Distribution over Time: Economists elucidate that out of the 415 million, 270 million transitioned out of poverty from 2005-06 to 2015-16, with the remaining following thereafter.
- Discrepancies in Ratio: The Global MPI cites India’s poverty ratio as 16.4%, while Niti Aayog’s MPI places it at 14.96%, due to variations in metrics and definitions.
Traditional Poverty Measurement
- Historical Monetary Measure: Since 1901, poverty in India has been estimated using monetary measures that ascertain the income needed for subsistence or a minimum standard of living.
- Creation of Poverty Line: Expert committees headed by D T Lakdawala (1993), Suresh Tendulkar (2009), and C Rangarajan (2014) established a poverty line based on consumption expenditure data.
- Unresolved Data Issues: The absence of updated consumption data since 2011 has led to economists using alternative sources like NFHS data and CMIE data to estimate poverty, which has introduced uncertainty.
Conundrum of Middle-Class Definition
- Ambiguity in Classification: India lacks an official middle-class definition, making it challenging to ascertain whether those emerging from poverty automatically join the middle class.
- Income Disparity: Private research by PRICE categorizes the middle class based on annual income between ₹5 lakh and ₹30 lakh, a considerable jump from the income levels of individuals transitioning from poverty.
- Survey Insights: As per PRICE’s survey, out of India’s population of 1,416 million, 432 million fall under the “Middle Class” category, while 732 million are classified as “Aspirers.”
Conclusion
- The reduction of 13.5 crore individuals from multidimensional poverty is a testament to India’s commitment to holistic development.
- While multidimensional poverty indices gauge well-being across dimensions, traditional poverty estimation methods use monetary measures.
- India’s achievements reflect its focus on inclusive growth, emphasizing improvements in health, education, and living standards.
- As the nation continues its journey, these achievements illuminate the path towards building a more prosperous, equitable, and resilient society.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Purchasing Managers' Index (PMI)
Mains level: NA
Central Idea
- India’s services sector has exhibited significant growth, as reflected by the S&P Global India Services Purchasing Managers’ Index (PMI), which reached a 13-year high of 62.3 in July.
- The recovery is driven by increased demand, new business opportunities, and robust export orders.
- However, challenges such as rising input costs and cautious output pricing indicate a nuanced landscape.
Service Sector
The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.
Some examples of activities that fall under the service sector include:
- Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
- Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
- Financial services: This includes banks, insurance companies, and investment firms.
- Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
- Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
- Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
- Education and training: This includes activities such as schools, colleges, universities, and vocational training.
- Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.
|
Purchasing Managers’ Index (PMI)
- PMI is an indicator of business activity — both in the manufacturing and services sectors.
- The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
- It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
How is the PMI derived?
- The PMI is derived from a series of qualitative questions.
- Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
How does one read the PMI?
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.
Recent Feat Achieved
- Output Levels: The survey-based index shows that output levels experienced the fastest growth since June 2010, driven by robust demand and increased new business gains.
- Job Creation: Despite the surge in workload, job creation remained modest, with a “slight” pace of hiring. Firms employed a mix of part-time, full-time, permanent, and temporary staff.
- Rising Input Costs: Input costs recorded the fastest increase in 13 months, primarily due to higher food, labor, and transportation expenses.
- Output Price Dynamics: On the other hand, firms displayed caution in their output pricing strategy, with output prices increasing at the slowest rate in three months. This approach could be attributed to the desire to secure new contracts.
- Overseas Expansion: Export orders received a significant boost, with firms reporting the second-fastest increase in export orders since the inception of the index in September 2014.
- Key Growth Sources: Countries like Bangladesh, Nepal, Sri Lanka, and the UAE emerged as key sources of growth in export orders.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Read the attached story
Central Idea
- The report, titled “State of Elementary Education in Rural India” was recently released.
- It highlights the prevailing digital landscape in rural communities regarding Education.
State of Elementary Education in India
- It is a comprehensive survey conducted across 21 Indian States, encompassing 6,229 parents of rural schoolchildren aged 6 to 16.
- It is released by conducted by the Development Intelligence Unit (DIU).
- It has uncovered a notable trend: children in rural areas predominantly employ smartphones for entertainment purposes rather than for educational pursuits.
Key Highlights
(1) Smartphone Use and Entertainment
- Survey Overview: The survey found that 49.3% of rural students have access to smartphones, shaping their digital engagement.
- Entertainment Dominance: Among parents whose children have access to gadgets, a significant 76.7% noted that their children primarily use smartphones for playing video games, underscoring the prevalence of entertainment-related activities.
- Media Consumption: The survey revealed that 56.6% of students with access to gadgets use smartphones for downloading and watching movies, while 47.3% engage in downloading and listening to music.
- Educational Utilization: In contrast, only 34% of students employ smartphones for study downloads, and merely 18% access online learning resources such as tutorials.
(2) Demographics and Education Levels:
- Age and Smartphone Access: The survey delineated that students in higher grades (Class VIII and above) have greater access to smartphones (58.32%) compared to their counterparts in lower grades (Classes I-III) with access at 42.1%.
- Aspirations for Education: An encouraging statistic emerged, with 78% of parents aspiring to educate their daughters to at least graduation level, and 82% aiming for the same for their sons.
(3) Parental Participation and Insights
- Learning Conversations: The survey indicated that only 40% of parents engage in daily conversations with their children about school-related learning. Another 32% have such discussions a few days a week.
- Dropout Insights: Among a subset of 56 respondents, reasons for children dropping out of school included daughters needing to contribute to family income (36.8%), lack of interest in studies (31.6%), and household responsibilities (21.1%). For boys, the primary reason was disinterest in studies (71.8%), followed by the need to assist with family earnings (48.7%).
- Parent-Teacher Meetings: Impressively, 84% of parents reported regular attendance at parent-teacher meetings. Challenges hindering participation included short notice and a lack of willingness.
Conclusion
- Despite limited access, these findings emphasize the need for balanced digital engagement that promotes both educational growth and recreational activities.
- The survey’s insights into parental aspirations, conversations around learning, and the challenges of dropout rates provide a comprehensive picture of the rural education landscape and underscore the importance of holistic educational approaches.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Statistical Organisation (NSO)
Mains level: Read the attached story
Central Idea
- The Centre has appointed a panel to review the methodology of the National Statistical Organisation (NSO).
- This step comes amid discussions regarding the accuracy of national surveys such as the National Sample Survey (NSS), National Family Health Survey (NFHS), and Periodic Labour Force Survey (PLFS).
About National Statistical Office (NSO)
Historical Background:
- The NSO was established in 1950 as the Central Statistical Office (CSO) under the Ministry of Planning.
- It was later renamed the National Sample Survey Office (NSSO) in 1970 and subsequently became the NSO in 2019.
- Over the years, it has evolved to become the primary statistical agency in India.
Organizational Structure:
- The NSO consists of several divisions and units responsible for different statistical functions.
- These include the Survey Design and Research Division, Field Operations Division, Data Processing Division, National Accounts Division, Price Statistics Division, and Social Statistics Division, among others.
Key organizations under NSO: Central Statistical Office (CSO)
- The CSO is a part of the NSO and focuses on macroeconomic statistics and national income accounting.
- It is responsible for producing key economic indicators such as the Gross Domestic Product (GDP), Index of Industrial Production (IIP), Consumer Price Index (CPI), and Wholesale Price Index (WPI).
Important Surveys Conducted:
- Population Census: The NSO conducts a decennial Population Census in collaboration with the Registrar General and Census Commissioner of India. The census collects data on population size, composition, and other demographic characteristics.
- National Sample Survey (NSS): The NSS is a large-scale household survey conducted by the NSO to collect data on various socio-economic aspects. It provides valuable information on employment, consumer expenditure, poverty, education, health, and other important indicators.
- Economic Census: The NSO conducts the Economic Census periodically to collect data on the number of business establishments, their distribution across sectors and regions, employment, and other relevant economic variables.
- Annual Survey of Industries (ASI): The ASI is conducted by the NSO to collect data on the performance and structure of the industrial sector in India. It covers various aspects such as employment, wages, production, and financial indicators.
- Agricultural Census: The NSO conducts the Agricultural Census periodically to collect comprehensive data on agricultural holdings, cropping patterns, land use, irrigation, livestock, and other relevant agricultural variables.
- Health and Morbidity Survey: The NSO conducts surveys on health and morbidity to gather data on healthcare utilization, access to healthcare services, prevalence of diseases, and other health-related indicators.
Why under review?
- Concerns about Methodology: Experts argue that the usage of outdated survey methodology in national surveys may have systematically underestimated India’s development.
- Narrower capture of data: The dynamic nature of the Indian economy over the last 30 years might not be adequately captured.
- Different Perspectives: While some experts believe there is no systematic underestimation of development by these surveys, they acknowledge the presence of errors that should be minimized.
- Role of National Data: Accurate national-level data is crucial for research, policymaking, and development planning.
Focus on NFHS Data
- Crucial development data: The National Family Health Survey provides vital data on health and family welfare indicators.
- Claims of Bias: Some experts suggest that national surveys, including NFHS, may exhibit a “rural bias” in representation, leading to an underestimation of India’s development.
- Issue of Error and Random Bias: While errors in population estimations have occurred in some rounds, they appear to be random rather than systematic.
Minimizing Errors in Data Collection
- Improving Response Rates: Efforts to increase response rates in both rural and urban areas can lead to more accurate data.
- Importance of Sample Weights: Proper assignment of sample weights can significantly improve the accuracy of estimations and correct any underrepresentation of rural or urban populations.
Recommendations for the Review Panel:
- Addressing Concerns: The review panel should focus on ensuring that the samples are adequately representative rather than proposing a complete overhaul of survey methodologies.
- Correcting Bias Where It Exists: While addressing any perceived biases, the panel should aim to eliminate bias where it genuinely exists without introducing new biases in policymaking and planning.
Conclusion
- Accurate data serves as the bedrock of progress and development in the country.
- Reviewing the methodology of national surveys is vital to ensure accurate and representative data for India’s development.
- Striking the right balance between addressing concerns and minimizing errors will lead to more informed decision-making and policy formulation.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now