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.
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.
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).
AboutNational 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.
From UPSC perspective, the following things are important :
Prelims level: Export Preparedness Index (EPI
Mains level: Not Much
PC: Live Mint
Central Idea
Tamil Nadu has emerged as the most export-competitive state in India, securing the top spot in the Export Preparedness Index 2022 by Niti Aayog.
Export Preparedness Index (EPI)
EPI is a comprehensive tool aimed at gauging the export readiness of India’s states and union territories (UTs).
The index analyses various parameters, enabling the identification of strengths and weaknesses in each region and offering valuable insights for effective policy formulation.
EPI focuses on four pillars:
Policy: This pillar evaluates the effectiveness of a state’s trade policy, providing strategic direction for both exports and imports.
Business Ecosystem: The efficiency of a business ecosystem is crucial for attracting investments and fostering an enabling infrastructure for startups and entrepreneurship.
Export Ecosystem: This pillar assesses the business environment specific to exports, determining the level of support and facilitation provided to exporters.
Export Performance: The sole output-based parameter, this pillar examines the reach of export footprints in states and UTs, measuring their actual export achievements.
10 Sub-pillars include: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
States performance
Export-Competitive State:Top Contenders: Maharashtra, Karnataka, and Gujarat (last year’s leader) followed closely, while Haryana claimed the fifth position.
Coastal States’ Dominance: Coastal states dominated the top rankings, with four out of the top five positions occupied by them. Andhra Pradesh also secured the ninth spot.
Gujarat- Leading Merchandise Exporter: Gujarat holds the top position as the leading merchandise exporter, accounting for one-third of India’s total merchandise exports.
Top Five Exporting States: Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh complete India’s top five exporters.
Seven States’ Dominance: An impressive 75% of India’s total exports are contributed by just seven states.
Reasons for export boost
Export Promotion Policies: The top-performing states have implemented export promotion policies at both state and district levels.
Diversified Export Basket: These states have a diverse export basket, showcasing their global footprint.
Promoting Unique Products: Successful states focus on promoting products unique to their region. Tamil Nadu and Karnataka lead in exporting geographical indication (GI) products.
India’s Export Performance
Resilient Exports: Despite pandemic challenges and supply-side issues, India’s goods exports remained robust, reaching an all-time high of $447 billion in FY23.
Target for FY24: The government refrained from setting a specific export target for FY24 due to global headwinds but may aim for $450 billion to $500 billion in goods exports.
Services Exports: Services exports amounted to $323 billion in FY23, bringing India’s overall exports to $770 billion.
From UPSC perspective, the following things are important :
Prelims level: National Multidimensional Poverty Index, 2023
Mains level: Not Much
Central Idea
NITI Aayog released the report ‘National Multidimensional Poverty Index: A Progress Review 2023’.
The report highlighted a record 13.5 crore people have moved out of multidimensional poverty in India between 2015-16 and 2019-21.
What is National Multidimensional Poverty Index (NMPI)?
NITI Aayog serves as the nodal ministry for the MPI.
It engages with publishing agencies such as Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
It uses the Alkire-Foster (AF) methodology.
The Baseline Report of MPI is based on the National Family Health Survey (NFHS) 4 conducted during 2015-16.
Indicators used
The MPI considers three dimensions: health, education, and standard of living.
It includes indicators such as nutrition, child and adolescent mortality, maternal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, bank accounts, and assets.
Key findings of the report
Decline in Poverty: India has witnessed a substantial decline in multidimensional poverty, with a decrease of 9.89 percentage points from 24.85% in 2015-16 to 14.96% in 2019-21.
Progressiveness in rural areas: Rural areas experienced the fastest decline, from 32.59% to 19.28%, while urban areas saw a reduction from 8.65% to 5.27%.
Regional Progress: UP recorded the largest decline in the number of poor, with 3.43 crore people escaping multidimensional poverty. The states of UP, Bihar, Madhya Pradesh, Odisha, and Rajasthan showed the fastest reduction in the proportion of multidimensional poor.
Path towards SDG Targets: The report indicates that India is on track to achieve SDG Target 1.2, which aims to reduce multidimensional poverty by at least half by 2030.
From UPSC perspective, the following things are important :
Prelims level: NSO
Mains level: Read the attached story
Central Idea
Revamping the SCES: Standing Committee on Economic Statistics (SCES) set up in late 2019 faced criticism for data quality issues in previous surveys.
Broader Mandate: The government establishes the Standing Committee on Statistics (SCoS) to replace the SCES, with a mandate to review all surveys conducted under the National Statistical Office (NSO).
Standing Committee on Statistics (SCoS): Composition and Mandate
Chairperson: Pronab Sen, India’s first chief statistician and former chairman of the National Statistical Commission (NSC), appointed as the chair of the new committee.
Membership: SCoS consists of 10 official members and four non-official members, including eminent academics.
Need for SCoS
Concerns from Economic Advisory Council: Members, including Bibek Debroy, called for an overhaul of India’s statistical machinery.
Lack of technical Expertise: SCoS aims to address critiques by providing technical advice on survey design and methodology.
Issues with Indian Statistical Service: Questions raised about the expertise of the Indian Statistical Service in survey design.
Roles and Responsibilities of the SCoS
Reviewing Framework and Results: SCoS is responsible for reviewing the framework and results of all surveys conducted under the NSO.
Data Gap Identification: SCoS identifies data gaps in official statistics and develops strategies to fill those gaps.
Use of Administrative Statistics: Committee mandated to explore the use of administrative statistics to improve data outcomes.
Back2Basics:National Statistical Office (NSO)
(a) 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.
(b) 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.
(c) 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).
(d) 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.
From UPSC perspective, the following things are important :
Prelims level: NIA
Mains level: Not Much
Central Idea: The National Investigating Agency (NIA) has assumed control of the investigation into the attacks carried out by Khalistan supporters on Indian Missions in the US and Canada.
About National Investigating Agency (NIA)
(1) Establishment and Mandate
The NIA was established in December 2008 in response to the 26/11 Mumbai terror attacks.
It operates under the National Investigation Agency Act.
It is responsible for investigating offenses related to terrorism, smuggling of arms, drugs, counterfeit currency, and cross-border infiltration.
(2) Jurisdiction and Powers
The NIA has jurisdiction over the whole of India and extends to Indian citizens abroad, government personnel, and individuals on Indian-registered ships and aircraft.
It possesses extensive powers to search, seize, arrest, and prosecute those involved in scheduled offenses under various acts, including the Unlawful Activities (Prevention) Act and the Indian Penal Code.
(3) Scheduled Offenses:
The NIA investigates offenses listed under the schedule of the NIA Act, which includes acts related to explosives, hijacking, unlawful activities, terrorism, maritime navigation safety, and more.
In 2020, the NIA was empowered to probe offences under the Narcotic Drugs and Psychotropic Substances Act connected to terrorism cases.
Operational Procedures of the NIA
Referral and Direction: State governments can refer cases involving scheduled offences to the Union Home Ministry, which can then direct the NIA to take over the investigation. The Central government can also initiate investigations suo motu if it believes a scheduled offence has been committed.
Assistance and Cooperation: State governments are required to provide full assistance to the NIA during investigations. This includes sharing information, providing logistical support, and cooperating in the arrest and prosecution of suspects. The NIA relies on the collective efforts of state and central agencies to ensure a comprehensive and effective investigation.
Proactive Investigations: The NIA has the authority to proactively investigate cases involving scheduled offenses, taking the initiative to prevent and preempt acts of terrorism and other serious crimes. This proactive approach enables the agency to identify and neutralize threats in a timely manner, safeguarding national security.
Investigating the recent Attacks
Attacks on Indian Missions in the US and Canada: Khalistan supporters targeted Indian Missions in the U.S. and Canada in March. A group of protesters attacked the Indian Consulate in San Francisco, breaking makeshift security barriers and placing Khalistani flags inside the premises.
Violent Protests at Indian High Commission in London: Pro-Khalistani protestors attempted to vandalize the Indian High Commission in London and removed the national flag during their demonstrations.
From UPSC perspective, the following things are important :
Prelims level: NIRF Ranking
Mains level: State of higher education in India
Central Idea
In a country as diverse as India, ranking universities and institutions is a complex task.
The Ministry of Education established the National Institutional Ranking Framework (NIRF) in 2016 to assess the performance of institutions based on critical indicators.
Institutions eagerly await their standings in this nationally recognized system every year.
NIRF Ranking: An Overview
The NIRF releases rankings across various categories, including ‘Overall’, ‘Research Institutions’, ‘Universities’, ‘Colleges’, and specific disciplines.
The rankings serve as an important resource for prospective students navigating the higher education landscape in India.
NIRF ranks institutes based on their total score, which is determined using five indicators:
Teaching, Learning & Resources (30% weightage)
Research and Professional Practice (30%)
Graduation Outcomes (20%)
Outreach and Inclusivity (10%)
Perception (10%)
Concerns about the methodology
Role of Bibliometrics: Bibliometrics refers to the quantitative analysis of scholarly publications, including metrics such as the number of publications, citations received, and journal impact factors.
Limitations: Bibliometrics may not adequately consider factors such as the quality and relevance of research, innovation, societal impact, and contributions beyond traditional publications.
Caution against Over-Reliance: A comprehensive evaluation methodology should consider a broader range of factors to provide a more holistic assessment of institutional performance.
Issues with NIRF’s Bibliometric Approach
Reliance on Commercial Databases: The NIRF relies on commercial databases like Scopus and Web of Science to collect bibliometric data for evaluating research output and impact. However, these databases may have limitations in terms of coverage, accuracy, and the inclusion of non-traditional research outputs.
Accuracy and Misuse Concerns: There are concerns regarding the accuracy of bibliometric data, potential manipulation of citation counts, and the misuse of metrics for promotional purposes. It is important to ensure the integrity and validity of the data used in ranking assessments.
Neglecting Non-traditional Contributions: The focus on research articles in bibliometric indicators may overlook other valuable intellectual contributions, such as books, book chapters, patents, policy reports, and other forms of non-traditional scholarly outputs.
Disincentive for Local Issues: The emphasis on internationally recognized journals and global research trends may discourage researchers from addressing local issues and conducting research that is contextually relevant to national or regional priorities.
Transparency and Flaws in the Rankings
Lack of Transparency: Institutions and stakeholders should have access to detailed information about the methodology, data sources, weightage assigned to different indicators, and the process of data collection and analysis.
Need for Detailed NIRF Methodology: While the NIRF publicly shares its ranking methodology, there is a need for more comprehensive and transparent documentation that provides a detailed view of the evaluation process. This would enhance stakeholders’ understanding and enable a more informed assessment of the rankings.
Addressing the Discrepancy: Clear and precise definitions for indicators like research quantity and quality are crucial to avoid potential ambiguity and misinterpretation. Transparent guidelines and criteria should be established to ensure a consistent and fair evaluation.
Conclusion
Promoting Comprehensive Evaluation: There is a need to develop evaluation methodologies that go beyond bibliometrics and consider a broader range of qualitative and quantitative factors to provide a more comprehensive assessment of institutional performance.
Transparency, Diverse Factors, and Balance: Ensuring transparency in ranking methodologies, considering diverse factors, and striking a balance between quantitative metrics and qualitative assessments will contribute to a more accurate and meaningful evaluation of universities in India.
From UPSC perspective, the following things are important :
Prelims level: Commissioner of Railway Safety (CRS)
Mains level: Read the attached story
Central Idea: The Commissioner of Railway Safety (CRS) conducts investigations into train accidents, including the recent tragic train crash in Odisha.
About Commissioner of Railway Safety (CRS)
Role of CRS: CRS is a government body responsible for railway safety oversight and carries out inspectorial, investigatory, and advisory functions as mandated by the Railways Act, 1989.
Headquarters: The CRS is headquartered in Lucknow, Uttar Pradesh, and operates under the administrative control of the Ministry of Civil Aviation (MoCA).
Evolution of CRS and Safety Oversight
Early Railways in India: Private companies constructed and operated the first railways in India in the 1800s, with the British Indian government appointing consulting engineers for control and oversight.
Establishment of Government Inspectors: The consulting engineers were later designated as government inspectors, and in 1883, their position was recognized statutorily.
Inclusion in the Railway Board: In the early 1900s, the Railway Inspectorate came under the Railway Board, established in 1905, making the board the safety controlling authority for Indian railways.
Separation of Safety Oversight and Railway Board
Government of India Act, 1935: The act stated that an independent authority, separate from the Railway Board, should be responsible for ensuring the safety of railway operations.
Delayed Implementation: The outbreak of World War II in 1939 delayed the separation, and the Railway Inspectorate continued to function under the control of the Railway Board.
Mount Panel Report: In 1939, the Mount Panel recommended the separation of the Railway Inspectorate from the Railway Board, acknowledging the board’s agreement with the proposal.
Transfer of Railway Inspectorate’s Control
Central Legislature’s Endorsement: In 1940, the Central Legislature endorsed the separation of the Railway Inspectorate from the Railway Board.
Administrative Control Shift: In May 1941, the Railway Inspectorate was transferred from the Railway Board’s control to the Department of Posts and Air.
Renaming as CRS: The Inspectorate was renamed as the Commissioner of Railway Safety (CRS) in 1961 and placed under the administrative control of the ministry overseeing civil aviation.
Functions and Responsibilities of CRS
Railway Safety Oversight: CRS is responsible for ensuring the safety of rail travel and operations in India.
Inspectorial Functions: CRS conducts inspections of railway infrastructure, equipment, and operations to ensure compliance with safety standards.
Investigatory Functions: CRS conducts thorough investigations into serious train accidents to determine the causes and make recommendations for improvements.
Advisory Functions: CRS provides expert advice and recommendations to the Ministry of Civil Aviation and other stakeholders on matters related to railway safety.
Collaboration with Railway Authorities: CRS works closely with the Ministry of Railways and the Railway Board to address safety concerns and implement safety measures.
Cooperation with Other Agencies: CRS collaborates with other agencies and organizations involved in railway safety, such as the National Safety Council and the Indian Railways Institute of Civil Engineering.
Why does it function under MCA?
Insulation from Railway Establishment: CRS operates under the administrative control of the Ministry of Civil Aviation to maintain independence and prevent conflicts of interest.
Objective Decision-Making: Independence from the railway establishment ensures impartiality in accident investigations and safety oversight.
Enhanced Credibility: The separation of CRS from the Railway Board enhances the credibility of safety oversight and investigations.
Future Challenges and Priorities
Modernization and Technology Integration: CRS focuses on integrating advanced technologies and modernizing railway infrastructure to enhance safety.
Safety Culture and Behavioral Change: Promoting a strong safety culture and fostering behavioral change among railway staff and passengers are key priorities.
Addressing Emerging Risks: CRS continuously assesses and addresses emerging safety risks, such as cybersecurity threats and climate change impacts, in railway operations.
International Collaboration and Best Practices
Knowledge Sharing: CRS actively participates in international forums and collaborates with global railway safety organizations to exchange best practices and enhance safety standards.
Benchmarking and Learning: CRS benchmarks its safety practices against international standards and adopts relevant best practices to improve railway safety in India.
Harmonization of Safety Regulations: CRS contributes to the harmonization of safety regulations and standards with international frameworks to ensure interoperability and seamless rail connectivity.
DOMR | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Manufacturing Innovation Survey (NMIS)
Mains level: Read the attached story
Central Idea: The Department of Science and Technology under the Ministry of Science & Technology has released the National Manufacturing Innovation Survey (NMIS) 2021-22.
About National Manufacturing Innovation Survey
Details
Undertaken by
DST and United Nations Industrial Development Organization (UNIDO)
History
First National Innovation Survey in 2011
Focus
Manufacturing competitiveness
Purpose
Innovation performance of Indian manufacturing firms
Insights
Enabling activities and identifying barriers to innovation
Processes
Examines innovation processes, outcomes, and barriers faced by firms
State/Sector
Evaluates performance of states and sectors in producing new products, services, and business processes
It captured data related to types of innovations and innovative measures taken by firms.
Includes: the process of innovation, access to finance, resources, and information for innovation, besides also recording the factors impacting the innovation activities in a firm.
One in four firms have successfully implemented an innovation in the observation period.
Over 80% of these firms benefitted significantly in expanding markets and production and reducing costs.
(2) Sectorial System of Innovation survey
It mapped the manufacturing innovation system and its role in achieving innovations in firms.
It measures the interactions between stakeholders of the innovation ecosystem, barriers to innovation, and the convergence or divergence of policy instruments in select 5 key manufacturing sectors important to the Indian economy.
Key highlights
Karnataka is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively.
Odisha, Bihar, and Jharkhand reported the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
Nearly three-fourths of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor process innovation.
However, nearly 80% of the firms that did report significant gains such as expanding markets and reducing production costs.
Barriers identified
The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources.
Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialised States.
Significance of the survey
It will help in the Make-in-India programme, specifically the Production Linked Incentive (PLI) schemes.
It will help to boost manufacturing in a variety of sectors, including electronics, pharmaceuticals, and automobiles.
From UPSC perspective, the following things are important :
Prelims level: GSTAT
Mains level: Disputes resolution under GST regime
The Lok Sabha passed Finance Bill, 2023 with some amendments, including one that seeks to set up the much-awaited GST Appellate Tribunal (GSTAT), which will deal with tax disputes.
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
Composition of GSTAT
GSTAT will have a “Principal Bench” in New Delhi.
It would have the President (probably a former Supreme Court judge), a judicial member, a technical member (centre), and a technical member (state).
It will also have state benches.
Appeals pertaining to disputes of less than Rs. 50 lakh that don’t deal with a question of law could be decided by a single-member bench, as per the norms approved by the GST Council.
Why need 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 the 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.
Back2Basics:Finance Bill
A Finance Bill is a proposed legislation that is introduced by the government to implement the financial proposals of the Union Budget for the upcoming financial year in India.
It is a comprehensive document that outlines the government’s revenue and expenditure for the year, including changes in tax laws, tariffs, customs duties, and other fiscal measures.
Since the Union Budget deals with these things, it is passed as a Finance Bill.
Types of Finance Bills
There are different kinds of Finance Bills — the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110.
In India, there are three types of Finance Bills that can be introduced in the Parliament:
Annual Finance Bill: This is the most common type of Finance Bill and is introduced by the government every year to give effect to the tax proposals announced in the Union Budget. It contains provisions related to taxation, expenditure, and revenue collection for the upcoming financial year.
Finance Bill (Money Bill): A Money Bill is a type of Finance Bill that contains only provisions related to taxation and expenditure, but does not include any other matter. Money Bills are deemed to be passed by the Lok Sabha, the lower house of Parliament, and do not require approval from the Rajya Sabha, the upper house of Parliament.
Finance Bill (Non-Money Bill): This type of Finance Bill contains provisions related to taxation and other matters, such as changes in the structure of regulatory bodies or the introduction of new policies. Unlike Money Bills, Non-Money Bills must be passed by both the Lok Sabha and the Rajya Sabha to become law.
How is money bill different from Finance Bill?
A Money Bill is certified by the Speaker as such — in other words, only those Financial Bills that carry the Speaker’s certification are Money Bills.
Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:
(a) the imposition, abolition, remission, alteration or regulation of any tax;
(b) the regulation of the borrowing of money or any financial obligations undertaken
(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;
(d) the appropriation of moneys out of the consolidated Fund of India;
(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
(g) any matter incidental to any of the matters specified in sub clause (a) to (f)
From UPSC perspective, the following things are important :
Prelims level: Social Progress Index (SPI)
Mains level: Read the attached story
Economic Advisory Council to Prime Minister (EAC-PM) will release the Social Progress Index (SPI) for states and districts of India on December 20, 2022.
Social Progress Index (SPI) Report
SPI is a comprehensive tool intended to be a holistic measure of the Social Progress made by the country at the national and sub-national levels.
The report has been prepared by Institute for Competitiveness, headed by Dr Amit Kapoor and the Social Progress Imperative, headed by Michael Green.
It was mandated by Economic Advisory Council to the Prime Minister of India.
Objectives of the report
With state and district-wise rankings and scorecards, the report aims to provide a systematic account of the social progress made at all levels in the country.
The report also sheds light on the achievements of the districts that have performed well on the index and the role of the states in achieving social progress.
A special section of the report provides an analysis of the Aspirational Districts of India, leading to a broader understanding of the social progress at the grassroots level.
The report will act as a critical enabler and tool for policymakers in the coming years for achieving sustained socio-economic growth.
Components of SPI
SPI assesses the performance of states and districts on three dimensions of social progress:
Basic Human Needs: It assesses the performance of states and districts in terms of Nutrition and Basic Medical Care, Water and Sanitation, Personal Safety and Shelter.
Foundations of Wellbeing: It evaluates the progress made by the country across the components of Access to Basic Knowledge, Access to Information and Communication, Health and Wellness, and Environmental Quality.
Opportunity: It focuses on aspects of Personal Rights, Personal Freedom and Choice, Inclusiveness, and Access to Advanced Education.
(This newscard will be updated once the report is published.)
Need for SPI
GDP is not a holistic measure of a nation’s development: It would be incorrect to state that the economic progress is completely divorced from progress made in areas mentioned above.
Social outcomes of developmental economics: The primary goal of the SPI is to provide a rigorous tool to benchmark progress and stimulate progress within countries.
No single holistic parameter available: Several indicators, like GHI and HDI, go beyond GDP, but none captures social progress as finely as SPI.
Doing away with biased reports: India does not display a respectable position in the index, as even the small neighbours like Nepal have a better rank. India is also the lowest rank holder in BRICS.
From UPSC perspective, the following things are important :
Prelims level: MTSI
Mains level: Mother tounges as a medium of education
The Ministry of Home Affairs (MHA) has completed the Mother Tongue Survey of India (MTSI) with field videography of the country’s 576 languages.
What is the MTSI?
The Mother Tongue Survey of India is a project that surveys the mother tongues, which are returned consistently across two and more Census decades.
It also documents the linguistic features of the selected languages.
The category “mother tongue” is a designation provided by the respondent, but it need not be identical with the actual linguistic medium.
The NIC and the National Film Development Corporation (NFDC) will be documenting and preserving the linguistic data of the surveyed mother tongues in audio-video files.
Video-graphed speech data of Mother Tongues will also be uploaded on the NIC survey for archiving purposes.
How many “mother tongues” does India have?
As per an analysis of 2011 linguistic census data in 2018, more than 19,500 dialects are spoken in India as mother tongues.
They are grouped into 121 mother tongues.
According to the 2011 linguistic census, Hindi is the most widely spoken mother tongue, with 52.8 crore people or 43.6 per cent of the population declaring it as the mother tongue.
The next highest is Bengali, mother tongue for 9.7 crore individuals, and accounting for 8 per cent of the population.
Where does the mother tongue feature in the education of children?
The new National Curriculum Framework (NCF) has recommended that mother tongue should be the primary medium of instruction in schools for children up to eight years of age.
The new NCF, which deals with pre-school and classes I-II, emphasises the virtues of the mother tongue as the primary medium of instruction.
It says that by the time children join pre-school, they acquire significant competence in the “home language”.
This push has come after repeated policy articulations in its favour from PM and Home Minister.
Why emphasize more on mother tongue?
According to the NCF, evidence from research confirms the importance of teaching children in their mother tongue during the foundational years and beyond.
Children learn concepts most rapidly and deeply in their home language.
Hence the primary medium of instruction is optimally the child’s home language/ mother tongue/ familiar language in the Foundational Stage.
What is the status of the population census?
The forthcoming decennial population census will be the 16th since the first exercise was conducted in 1872.
It will be the eighth census since independence.
The census was supposed to take place in 2021, but was postponed due to the outbreak of the Covid-19 pandemic.
Updates in the new census
To ensure efficient processing and quick release of data, the Home Ministry has adopted some new initiatives, which include digital data processing and the use of geospatial technology.
According to the report, pre-census mapping activities like preparation and updation of maps that show administrative units will be carried out.
Census results will be disseminated via web-based interactive maps.
India’s manufacturing sector experienced its slowest expansion in September since June, the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) indicated, with the index easing to 55.1 from August’s 56.2.
PMI improves
A PMI reading above 50 indicates an increase in firms’ activity levels, and September marked the 15th straight month of growth in manufacturing activity.
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.
What are its implications for the economy?
The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
It is, therefore, considered a good leading indicator of economic activity.
Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
Central banks of many countries also use the index to help make decisions on interest rates.
From UPSC perspective, the following things are important :
Prelims level: UAPA
Mains level: Terror financing and money laundering
The Union Home Ministry has declared the Popular Front of India (PFI) and its front organizations as an “unlawful association” under the Unlawful Activities (Prevention) Act (UAPA).
PFI under the Unlawful (Activities) Prevention Act (UAPA)
The UAPA is aimed at the effective prevention of unlawful activity associations in India.
Its main objective was to make powers available for dealing with activities directed against the integrity and sovereignty of India
It is an upgrade on the Terrorist and Disruptive Activities (Prevention) Act TADA, which was allowed to lapse in 1995 and the Prevention of Terrorism Act (POTA) was repealed in 2004.
It was originally passed in 1967 under the then Congress government led by former Prime Minister Indira Gandhi.
Till 2004, “unlawful” activities referred to actions related to secession and cession of territory. Following the 2004 amendment, “terrorist act” was added to the list of offences.
What are Unlawful Activities and Associations?
The UAPA lays down the definitions and rules for designating an organization as an “unlawful association” if it is engaged in certain types of activities.
Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”.
The government can then issue a notification designating such an organization as a terrorist organization if it believes that the organization is part of “terrorist activities.”
(1) Unlawful Activites
Under section 2(o) of the UAPA, an unlawful activity in relation to an individual or association means – Any action taken by such an individual or association (whether by committing an act or by words, either spoken or written, or by signs or by visible representation or otherwise), –
Works for the Cession of a part of the territory of India or the secession of a part of the territory of India from the Union
Disclaims, questions, disrupts or is intended to Disrupt the sovereignty and territorial integrity of India; or
which causes or is intended to cause Disaffection against India;
Related and ancillary acts, including financing, support or promotion of any such activities are also “unlawful activity”.
(2) Unlawful Association
The UAPA also defines an “Unlawful Association” under section 2(p) as meaning any association,–
which has for its object any unlawful activity, or which encourages or aids persons to undertake any unlawful activity, or of which the members undertake such activity or
which encourages or aids persons to undertake any such activity, or of which the members undertake any such activity
Reading the ban on PFI
At present, the MHA notification published has said that the PFI and its affiliated organisations are being notified as “Unlawful Associations” with immediate effect.
The charges against PFI are-
Pursuing a secret agenda to radicalize a particular section of society
Working towards undermining the concept of democracy and
Showing sheer disrespect towards the constitutional authority and constitutional set up of the country
Gathering funds and ideological support from outside the country
Money laundering
Immediate trigger for PFI’s ban
The PFI is accused of engaging in violent and barbaric acts.
Criminal violent acts carried out by PFI include chopping off the limb of a college professor, cold-blooded killings of persons associated with organisations espousing other faiths.
It has been allegedly involved in obtaining explosives to target prominent people and places and destruction of public property.
What does the ‘ban’ mean?
The notification means that the membership of, support or financing to the PFI and the allied banned organizations, is now ILLEGAL.
Any person who is a member of these organisations can face arrest, and joining membership of these organisations is a criminal offence.
The government can also seize the properties, bank accounts and offices connected to these organisations.
From UPSC perspective, the following things are important :
Prelims level: NCRB
Mains level: Crime in India
A new edition of ‘Crime in India’, the annual report of the National Crime Records Bureau (NCRB), was released on August 29, for crime-related statistics in 2021.
Why in news?
NCRB reports have been a valuable compilation of statistics over the years on offences ranging from crimes against women to economic and financial crimes.
It has provided honest and credible sets of crime related data in India.
Crime in India: Key highlights
Overall, 2021 saw a 6 per cent decline in the number of crimes registered, as compared to 2020.
The crime rate per lakh population declined from 487.8 in 2020 to 445.9 in 2021.
However, crime statistics do not always tell the full story, and lower crimes reported in an area do not necessarily mean it is safe.
Crimes against women rose 15 per cent in India in 2021 and Delhi is the most unsafe metropolitan city.
Rajasthan reported the highest number of rape cases and Maharashtra topped the list when it comes to most suicides.
Around 1.73 lakh people died in traffic accidents. Uttar Pradesh saw the highest number of deaths (24,711) in traffic accidents.
Of the total 814 cases under the UAPA in India, J&K lodged 289 cases last year, followed by Manipur (157), Assam (95), Jharkhand (86) and Uttar Pradesh (83).
Jharkhand and Maharashtra filed the highest cases of communal riots last year with 100 and 77 cases respectively.
Who publishes the NCRB report?
The NCRB was established in January 1986 with the aim of establishing a body to compile and keep records of data on crime.
It functions under the Union Home Ministry.
Apart from publishing annual reports, its functions include “Collection, coordination and exchange of information on inter-state and international criminals to the respective states”.
NCRB also acts as a “national warehouse” for the fingerprint records of Indian and foreign criminals, and assists in locating interstate criminals through fingerprint search.
How does the NCRB collect information for its report?
The NCRB report contains data received from the 36 states and Union Territories across the country.
Similar data is furnished for 53 metropolitan cities, or those having a population of more than 10 lakh as per the 2011 census, by respective state-level crime records bureaus.
This information is entered by state/UT police at the police station/ district level, and is then validated further at the district level, then the state level, and finally by the NCRB.
Issues with NCRB data
By its own admission, the NCRB says there are limitations to its data.
Since the publication caters to the ‘Principal Offence Rule’ for classification of crime, the actual count of each crime head may go under-reporting.
The Principal Offence Rule states that in a case where multiple offences are registered, only the “most heinous crime”, carrying the most stringent punishment, is considered when counting.
For example, ‘Murder with Rape’ is accounted as ‘Murder’, leading to undercounting of the crime of rape.
Vacancies or a shortage of police officers at the local level may hinder the collection of data.
Also the data record the incidence of registered crime rather than of actual crime.
Antithesis to NCRB data
Reported crimes against women in Delhi rose significantly in the aftermath of the 2012 Nirbhaya Gangrape case.
This is not because the heinous crimes got trivialized.
It may have been a reflection of increased awareness about the need for registering crimes, both among those affected and the police, rather than an actual increase in the incidence of crime against women.
From UPSC perspective, the following things are important :
Prelims level: PMI
Mains level: Not Much
India’s manufacturing sector rebounded in July, with sales and output growing at the fastest pace since November. The PMI quickened last month to 56.4, from June’s 9-month low of 53.9.
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.
What are its implications for the economy?
The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
It is, therefore, considered a good leading indicator of economic activity.
Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
Central banks of many countries also use the index to help make decisions on interest rates.
DOMR | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Core Industries
Mains level: Read the attached story
India’s eight core sectors’ output growth moderated to 12.7% in June, from 18.1% in May, with all sectors except crude oil registering an uptick in production.
What are the Core Industries in India?
The main or the key industries constitute the core sectors of an economy.
In India, there are eight sectors that are considered the core sectors.
They are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.
Index of Eight Core Industries (ICI) vs Index of Industrial Production (IIP)
[A] Index of Eight Core Industries
The monthly Index of Eight Core Industries (ICI) is a production volume index.
ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
Prior to the 2004-05 series six core industries namely Coal, Cement, Finished Steel, Electricity, Crude petroleum and Refinery products constituted the index basket.
Two more industries i.e. Fertilizer and Natural Gas were added to the index basket in 2004-05 series. The ICI series with base 2011-12 will continue to have eight core industries.
Components covered in these eight industries for the purpose of compilation of index are as follows:
Coal – Coal Production excluding Coking coal.
Crude Oil – Total Crude Oil Production.
Natural Gas – Total Natural Gas Production.
Refinery Products – Total Refinery Production (in terms of Crude Throughput).
Steel – Production of Alloy and Non-Alloy Steel only.
Cement – Production of Large Plants and Mini Plants.
Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.
[B] Index of Industrial Production
The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Difference between the two
IIP is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation six weeks after the reference month ends.
However, ICI is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
These are Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilisers.
Importance of Core Industries
The core sectors have a major impact on the Indian economy and significantly affect most other industries as well.
Their measures help account for the physical volume of production in India.
Their analysis offers a clearer and more realistic assessment of what’s happening in the economy
Their progress is used by government agencies for policy-making purposes.
They remain extremely relevant for the calculation of the quarterly and advanced Gross Domestic Product (GDP) estimates.
The core sector is also known as Infrastructure output as they represent the basic industries that form the base of the economy.
Do you know about the Strategic Sectors?
The government has identified four strategic sectors where the presence of state-run companies will be reduced to a minimum.
Atomic energy, space and defence
Transport and telecommunications
Power, petroleum, coal and other minerals and
Banking, insurance and financial services
Try this PYQ:
Q.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
From UPSC perspective, the following things are important :
Prelims level: HCES
Mains level: Not Much
The Centre has kicked off the process for conducting the quinquennial Household Consumption Expenditure Survey (HCES) this month.
What is the Household Consumer Expenditure Survey (CES)?
The HCES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO).
It is designed to collect information on the consumer spending patterns of households across the country, both urban and rural.
Typically, the Survey is conducted between July and June and this year’s exercise is expected to be completed by June 2023.
Why HCES?
The HCES is used to arrive at estimates of poverty levels as well as review key economic indicators like Gross Domestic Product (GDP).
The results of the survey are also utilised for updating the consumption basket and for base revision of the Consumer Price Index.
It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
It is used to arrive at estimates of poverty levels in different parts of the country and to review economic indicators such as the GDP, since 2011-12.
Why need this survey?
India has not had any official estimates on per capita household spending.
It provides separate data sets for rural and urban parts, and also splice spending patterns for each State and Union Territory, as well as different socio-economic groups.
What about the previous survey?
The survey was last held in 2017-2018.
The government announced that it had data quality issues.
From UPSC perspective, the following things are important :
Prelims level: India Innovation Index
Mains level: Not Much
Karnataka has bagged the top rank in NITI Aayog’s India Innovation Index, 2022, which determines innovation capacities and ecosystems at the sub-national level.
India Innovation Index (III)
The release of the second edition of the index—the first was launched in October 2019—demonstrates the Government’s continued commitment to transforming the country into an innovation-driven economy.
The index attempts to create an extensive framework for the continual evaluation of the innovation environment of all states and UTs in India.
It intends to perform the following three functions-
Ranking of states and UTs based on their index scores
Recognizing opportunities and challenges, and
Assisting in tailoring governmental policies to foster innovation
The states have been bifurcated into three categories: major states, northeast and hill states, and union territories/city-states/small states.
Significance
The study examines the innovation ecosystem of Indian states and union territories.
The aim is to create a holistic tool that can be used by policymakers across the country to identify the challenges to be addressed and strengths to build on when designing policies.
Highlights of the 2022 index
Karnataka has held this position, under the Major States category, in all three editions of the Index so far.
It was followed by Telangana, Haryana, Maharashtra and Tamil Nadu. Chhattisgarh, Odisha, Bihar and Gujarat were at the bottom of the index.
In the Index, Manipur secured the lead in the Northeast and Hill States category, while Chandigarh was the top performer in the Union Territories and City States category.
