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.
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).
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: 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.
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.
AboutPeriodic 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.
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.
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.
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.
