Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

 An either-or approach won’t help quell food inflation 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Food inflation trend;

Mains level: Impact of food inflation;

Why in the News?

The recently released Consumer Price Index-Combined (CPI-C) data reveals that food inflation, particularly from pulses, vegetables, and cereals, is rising faster than the overall CPI inflation.

  • The Consumer Price Index-Combined (CPI-C) is the index used to calculate headline inflation in India. It is calculated and published monthly by the Bureau of Labor Statistics.

Key Highlights of the CPI-C Data:

  • On Current Inflation Rates: The general CPI inflation stands at 3.54%, while food inflation is notably higher at 5.06%, driven by increases in prices of pulses, vegetables, and cereals.
  • On Inflation Dynamics in the Past: Over the past decade, food inflation has contributed to the overall volatility of prices. In 52 of the 124 months analyzed, food inflation exceeded the general CPI rate, indicating a significant and fluctuating impact on overall inflation.
  • Expectations by the report: The RBI has highlighted that food inflation significantly influences inflationary expectations, which remain unanchored, often exceeding actual inflation rates.

(*Note: These data don’t include income taxes or investment items like stocks, bonds, and life insurance.)

Recently impact of good Monsoon on Food Production and Inflation: 

  • Increased Sowing Due to Robust Monsoon: India has reported a significant increase in the sowing of paddy and pulses, with paddy sowing up by 16% to 39 million hectares and pulses by 7% to 12 million hectares as of August 23, 2024, driven by a strong monsoon.
  • Potential Impact on Food Inflation: Despite concerns over rising food inflation, the expanded cultivation area for staple crops like rice and pulses could positively impact the agriculture sector and support government efforts to enhance farm productivity.

Present Situation of Inflation in the Agri-Food Sector

  • Volatility in Food Prices: Food inflation has been volatile, with instances of both high and low inflation. For example, food inflation was above 6% in 52 out of 124 months, while it was below 2% in 20 months, including periods of negative inflation.
  • Supply-Side Factors: The disparities between food and retail inflation can be attributed to supply-side issues such as monsoon variability, crop failures, and government policies like minimum support prices (MSPs). Excess demand for specific food categories, such as oils and fats, has also contributed to higher inflation.
  • Regional Disparities: Rural CPI inflation is higher (5.43%) compared to urban CPI (4.11%), reflecting the impact of agricultural conditions and market dynamics on rural households.

How Can the Gap Between Farmer and Consumer Be Reduced?

  • Market-Driven Pricing: The government should reconsider its intervention in agricultural markets through MSPs, allowing market forces to determine food prices. This could help reduce production distortions and improve price signals for farmers.
  • Enhancing Agricultural Productivity: Government expenditure should focus on increasing agricultural productivity through better technology and irrigation practices, which can lead to more stable food supplies and prices.
  • Reducing Middlemen: Implementing measures to eliminate middlemen in the supply chain can help narrow the gap between what farmers receive and what consumers pay.
  • Infrastructure Development: Improving infrastructure for storage and transportation can help reduce food wastage and ensure that food products reach consumers efficiently, further stabilizing prices.

Conclusion: Need to encourage the adoption of advanced agricultural technologies and sustainable farming practices to boost productivity and reduce the impact of supply-side disruptions, ensuring more consistent food supplies and stable prices.

Mains PYQ:

Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.  (UPSC IAS/2017)

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Coronavirus – Disease, Medical Sciences Involved & Preventive Measures

 Advancing equity, from COVID-19 to Mpox  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Monkeypox;

Mains level: Major Learnings from the COVID-19 Pandemic;

Why in the News?

The recent declaration of Mpox (formerly monkeypox) as a Public Health Emergency of International Concern (PHEIC) by the WHO highlights several critical lessons learned from the COVID-19 pandemic.

Major Learnings from the COVID-19 Pandemic

  • Vaccine Manufacturing Capabilities: The COVID-19 pandemic exposed significant gaps in vaccine manufacturing capabilities, particularly in the Global South. This inadequacy was exacerbated by limited technology transfers and a lack of know-how to produce vaccines developed in high-income countries.
    • The current response to the Mpox outbreak reflects similar challenges, emphasizing the need for robust local manufacturing capabilities to ensure equitable access to vaccines.
  • Global Cooperation: The pandemic underscored the necessity of international collaboration in health emergencies. The WHO’s declaration of Mpox as a PHEIC aims to foster this cooperation, encouraging countries and organizations to share information and resources to combat the outbreak.
  • Equity in Health Responses: The recent amendments to the International Health Regulations (IHR) include equity as a core principle, which is crucial for ensuring that all countries, particularly those in lower-middle-income regions, have access to essential medical products during emergencies.

Recent Initiatives by India’s Drug Regulatory Agency:

  • On August 7, 2024, India’s Central Drugs Standard Control Organization (CDSCO) decided that drugs already approved in developed countries like the U.S. and those in the EU can be used during pandemics in India without needing to go through clinical trials here.
  • This regulatory change is expected to expedite the availability of critical vaccines like MVA-BN (Jynneos) in India, facilitating faster access to vaccines necessary to combat the Mpox outbreak.

What could be the more improved solution for it?

  • Scaling Up Production: The demand for pox vaccines is anticipated to surge, with estimates by AfricaCDC, suggesting that 10 million doses are needed to control the outbreak. However, only 0.21 million doses are currently available.
    • Indian manufacturers, such as the Serum Institute of India and Bharat Biotech, have the potential to rapidly scale up production of the MVA-BN vaccine using established processes and supply chains.
  • Comprehensive Technology Transfer: Effective technology transfer involves sharing not only the vaccine but also the necessary biological resources, manufacturing know-how, and patents. This is essential to enable lower-middle-income countries to produce vaccines independently, reducing reliance on high-income countries.
  • Collaborative Negotiations: The Indian government, in collaboration with international organizations like WHO and Gavi, should negotiate with Bavarian Nordic for technology transfer to technology transfer for developing the vaccine.

Way forward: 

  • Strengthen Local Manufacturing: Encourage Indian manufacturers like the Serum Institute of India and Bharat Biotech to rapidly scale up production of the MVA-BN vaccine, ensuring timely and sufficient supply to meet both domestic and global demand during the mpox outbreak.
  • Facilitate Technology Transfer: The Indian government should lead collaborative efforts with international organizations to secure comprehensive technology transfers, enabling domestic production of vaccines and reducing dependency on high-income countries.

Mains PYQ:

Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic.  (UPSC IAS/2016)

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Foreign Policy Watch: India-Pakistan

On the unrest in the Balochistan region

Note4Students

From UPSC perspective, the following things are important :

Mains level: Importance of Balochistan for India;

Why in the News?

The recent protests are a significant part of Balochistan’s long history of political struggles. They highlight the difficulties Pakistan faces in creating a country based solely on religion.

Causes and Reasons for the Recent Protests in Balochistan:

Balochistan has a long history of resistance against central authority, dating back to the forced accession of the region to Pakistan in 1948.

  • Political Discontentment: The continued centralization of power, lack of genuine federalism, and repeated dismissals of provincial governments have fueled discontent.
  • Economic Neglect: Despite being rich in resources like copper, gold, coal, and natural gas, Balochistan remains one of the poorest regions in Pakistan. The benefits of resource exploitation have not trickled down to the local population, exacerbating feelings of economic injustice.
  • Cultural and Ethnic Identity: Balochistan has a distinct cultural and historical identity, which has often clashed with the central government due to assimilation policies.
  • Human Rights Violations: The region has seen widespread reports of enforced disappearances, custodial killings, and fake encounters as part of Pakistan’s counter-insurgency strategy.

China’s Role in the Region:

  • Gwadar Port and Militarization Concerns: The Gwadar port, leased to a Chinese firm for 40 years, has raised fears of potential militarization, which could disrupt local livelihoods, especially those of the fishing communities.
    • The presence of Chinese trawlers has also sparked protests due to concerns about illegal fishing.
  • CPEC influence: The influx of non-locals into Balochistan for CPEC-related projects has led to fears of demographic changes, further alienating the local population.

Indian perspective: 

  • Strategic Implications: India’s interest in Balochistan primarily stems from the region’s strategic importance, given its location and the Gwadar port’s proximity to the Strait of Hormuz.
  • Diplomatic Stance: India has occasionally highlighted human rights issues in Balochistan, especially in international forums, as a counter-narrative to Pakistan’s stance on Kashmir. However, India’s involvement remains cautious to avoid escalating tensions with Pakistan.
  • Impact on Regional Stability: The unrest in Balochistan, coupled with Chinese involvement, complicates the security situation in South Asia.
    • India’s approach will likely focus on balancing its strategic interests while advocating for the rights of the Baloch people within international norms.

Way forward: (What should India do?)

  • Diplomatic Advocacy: India should continue to highlight human rights issues in Balochistan at international forums, positioning itself as a defender of human rights while maintaining a balanced approach to avoid escalating tensions with Pakistan.
  • Strategic Monitoring: India should closely monitor developments in Balochistan, particularly regarding Chinese activities in the Gwadar port, to safeguard its strategic interests and regional stability.

Mains PYQ: 

Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (150 Words, 10 Marks)  (UPSC IAS/2018)

Q ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

Q China and Pakistan have entered into an agreement for development of an economic corridor. What threat does this pose for India’s security? Critically examine (UPSC CSE 2014)

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Crime, health-worker safety, and a self-examination 

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues in the healthcare sector;

Why in the News?

  • The recent brutal rape and murder case in Kolkata has sparked widespread calls for the death penalty for the accused.
    • The Justice J.S. Verma Committee, formed in response to the 2012 Delhi gang rape, recommended against the death penalty for rape, even in the rarest of rare cases, arguing that it would be a regressive step.

Deeper problem in the Health Care Sector: 

  • Healthcare Violence: The protests by resident doctors stem from a series of violent attacks against medical personnel. This violence often arises from disgruntled patients and their families who perceive poor healthcare services.
  • Corruption in Healthcare: The World Health Organization estimates that corruption claims nearly $455 billion annually, which could otherwise extend universal health coverage globally.
    • In India, this corruption manifests in various forms, including bribery and sextortion, further undermining the healthcare system’s integrity.
  • Ineffective Responses: Traditional responses to healthcare violence, such as enhancing security and legal measures, have proven inadequate. These knee-jerk reactions fail to address the root causes of the violence.

What does the Justice K. Hema Committee report say on the Culture of Assault?

  • On Sexual Assault and Consent: Instances of sexual assault are not isolated events but are rooted in societal practices that undermine women’s autonomy and consent.
    • The National Crime Records Bureau reported 31,516 cases of rape in India in 2022, indicating a significant prevalence of sexual violence against women.
    • The Justice Hema Committee report emphasizes that rape is a manifestation of a culture that views women as objects rather than individuals with rights.
  • On Workplace Harassment: The Vishaka guidelines established in 1997 aimed to protect women from workplace harassment, leading to the Sexual Harassment of Women at Workplace Act, 2013, which mandates the formation of Internal Complaints Committees (ICC).
    • The report argues that ICCs are inadequate for the film industry due to potential biases and influence from abusers, advocating for an independent government forum to address these issues.

Need to Rethink Violence in Healthcare:  

  • Understanding the Multi-faceted Nature of Violence: Violence in healthcare settings is not limited to patient assaults on healthcare workers, it also includes institutional and managerial violence. This encompasses horizontal violence among healthcare providers and the systemic issues that create a hostile work environment.
  • Implementing Comprehensive Safety Measures: While immediate responses such as improving security and legal protections are necessary, they must be part of a broader strategy that includes training healthcare workers on conflict resolution, mental health support, and creating a culture of safety within healthcare institutions.

About Justice J.S. Verma Committee Recommendations

Recommendations on

Explanation

Rape • It recognized rape as a Crime of Power, not just passion.
• Expand definition to include all forms of non-consensual penetration.
Remove marital rape exception; marriage should not imply automatic consent. (European Commission of Human Rights in C.R. vs U.K)
Sexual Assault • Broaden definition to include all non-consensual, non-penetrative sexual acts.
Penalty: Up to 5 years of imprisonment or fines.
Verbal Sexual Assault • Criminalize unwelcome sexual threats.
Punishable by up to 1 year in prison or fines.
Sexual Harassment at Workplace Include domestic workers under protections.
Replace internal complaint committees with Employment Tribunals.
Employers to compensate victims of sexual harassment.
Acid Attacks Propose a 10-year minimum punishment, separate from grievous hurt.
Establish a compensation fund for victims.
Women in Conflict Areas • Review AFSPA; exclude government sanction for prosecuting sexual offenses by armed forces.
• Appoint special commissioners to monitor offenses.
Trafficking • Comprehensive anti-trafficking laws beyond prostitution.
• Protective homes for women and juveniles overseen by High Courts.
Child Sexual Abuse • Define ‘harm’ and ‘health’ in the Juvenile Justice Act to include both physical and mental aspects.
Death Penalty Opposed chemical castration and death penalty for rape.
• Recommend life imprisonment.
Medical Examination of Rape Victims Ban the two-finger test; victim’s past sexual history should not influence the case.
Reforms in Case Management • Set up Rape Crisis Cells, increase police accountability, allow online FIR filing.
Encourage community policing and increase police personnel.

Need for a Comprehensive Approach:

  • National Task Force: Improving hospital security and infrastructure alone may not be sufficient to address the problem. The national task force constituted by the Supreme Court should devise a comprehensive road map to prevent and arrest medical corruption, particularly in the public sector.
  • Need Expertise: The task force should include experts from public health, medico-legal, and other allied fields, along with the participation of the larger governing and administrative community.

Note: Recently some states have taken steps to empower women. For example, the Himachal Pradesh Assembly passed a Bill on Tuesday to increase the minimum marriage age for women from 18 to 21 years.

Mains PYQ: 

Q Appropriate local community level healthcare intervention is a prerequisite to achieve ‘Health for All’ in India. Explain. (UPSC CSE 2018)

Q We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace. (UPSC CSE 2014)

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Electoral Reforms In India

 Many questions about ‘one nation, one election’   

Note4Students

From UPSC perspective, the following things are important :

Mains level: Pros and cons related to simultaneous election;

Why in the News?

In an Independence Day speech, the Prime Minister renewed his push for simultaneous elections, targeting implementation by the 2029 polls.

Pros and Cons of Simultaneous Elections in India:

Pros

Cons

  1. Cost Reduction: It can decrease the deployment of resources such as EVMs, security personnel, and election management teams to only one time in 5 years.
  2. Continuity in Governance: Simultaneous elections can prevent the frequent imposition of the Model Code of Conduct, which disrupts government development activities and decision-making processes.
  3. Reduced Election Fatigue: Voters, political parties, and the administration could benefit from reduced election fatigue, allowing them to focus more on governance and development.
  4. Uniformity in Policy Implementation: Central and state governments can work in sync on policy implementation without the hindrance of upcoming elections in various states.
  1. Constitutional Challenges: The implementation of simultaneous elections would require significant amendments to the Constitution, particularly Articles 83, 85, 172, and 174, which deal with the duration of legislative bodies.
  2. Federalism Concerns: Opponents argue that simultaneous elections could undermine the federal structure of India, marginalizing regional parties and giving dominance to national parties.
  3. Voter Disengagement: The synchronization of elections might lead to voter disengagement due to the overwhelming nature of combined elections, where national issues may overshadow regional ones.

Key Recommendations of High-Level Committee

The High-Level Committee on Simultaneous Elections, chaired by former President Ram Nath Kovind, has made several significant recommendations aimed at synchronizing elections for the Lok Sabha, state assemblies, and local bodies in India.

  1. Amendment to Article 82A: Allow the President to set an ‘Appointed Date’ for starting simultaneous elections to Lok Sabha and Legislative Assemblies
  2. Term Synchronization: States with elections between June 2024 and May 2029 would have their terms end with the 18th Lok Sabha, enabling the first simultaneous elections in 2029
  3. Premature Dissolution Measures: Fresh elections only for the remaining term until the next simultaneous elections in case of early dissolution of Parliament or state Assembly
  4. Synchronization of Local Body Elections: Parliament to pass legislation to align municipalities and panchayats elections with General Elections within 100 days
  5. Single Electoral Roll: The committee advocates for a single electoral roll applicable to all tiers of government, which would require an amendment to Article 325. This aims to reduce redundancy and duplication in voter registration.
  6. Logistical Arrangements: ECI to provide detailed logistical and expenditure plans for simultaneous elections in coordination with SECs.

Way forward: 

  • Constitutional and Legal Reforms: Begin with phased constitutional amendments and legal reforms to address the challenges of synchronization while ensuring that the federal structure and democratic principles are preserved.
  • Pilot Implementation: Consider piloting simultaneous elections in a few states with synchronized local body elections to assess feasibility, logistical challenges, and public response before scaling up to the national level by 2029.

Mains question for practice:

Q Discuss the feasibility and implications of implementing simultaneous elections in India by 2029, as recently proposed by the Prime Minister. 15M 

Mains PYQs

‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss. (UPSC CSE 2017)

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Global Geological And Climatic Events

Frequent mass wasting in Tibet a cause for worry in India 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Location of Sedongpu Gully

Mains level: Cause of Mass Wasting Events;

Why in the News?

A recent study on frequent mass wasting in Sedongpu Gully and rapid warming raises concerns for India’s Northeast region.

About Sedongpu Gully:

  • The Sedongpu gully (29°47′7.20′′N, 94°55′24′′E) is in the large bend region of the Yarlung Tsangpo River, located in the southeastern Tibetan Plateau.
  • Debris flows have occurred in two adjacent gullies, namely Sedongpu Gully (SDP) and Zelongnong Gully (ZLN), since the 1950s.

Mass Wasting in the Gully: Stats and Reasons

  • Since 2017, over 700 million cubic meters of debris have been mobilized in the Sedongpu Gully catchment, with more than 68% of the total 19 identified mass-wasting events occurring in this period.
    • The events include ice-rock avalanches (IRAs), ice-moraine avalanches (IMAs), and glacier debris flows (GDFs).
  • Causes: The increased frequency of mass wasting is attributed to a combination of long-term warming and seismic activity.
    • The area rarely experienced temperatures above 0º C before 2012, but climate change has led to significant warming, destabilizing permafrost and increasing landslide activity.
    • The 6.4-magnitude Nyingchi earthquake in November 2017 also contributed to the destabilization of slopes.

Implications of sedimentation from mass wasting events:

  • River Choking and Flash Floods: The study warns that the increased sedimentation from mass wasting events could choke river channels, particularly affecting the Brahmaputra River system. 
  • Hydropower Projects: China is planning to construct a massive 60-gigawatt hydropower project on the Tsangpo River, which could exacerbate sedimentation issues downstream.
    • This project is expected to have three times the capacity of the Three Gorges Dam, raising concerns about river management and flood risks in India and Bangladesh.
  • Historical Flood Events: Past incidents, like the 2000 floods in Arunachal Pradesh caused by landslides blocking the Tsangpo River, show how dangerous landslides can be for areas downstream.
    • The chance of similar disasters is higher now because of the ongoing geological instability in the Sedongpu Gully.

Way forward: 

  • Bilateral and Multilateral Dialogues: India should intensify diplomatic efforts with China, advocating for shared water management strategies and transparency in hydropower projects on the Tsangpo River.
  • Real-Time Monitoring: Establish advanced real-time monitoring systems for the Brahmaputra River and its tributaries, using satellite imagery, remote sensing, and ground-based observations to track landslides, sedimentation, and water flow.

Mains question for practice:

Q Discuss the potential risks posed by the increasing frequency of mass wasting events in the Sedongpu Gully and the implications for India’s Northeast region. (150 words) 10M

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Investing in persons with disabilities  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Challenges Faced by Persons with Disabilities

Why in the News?

The recent film Srikanth depicts industrialist Srikanth Bolla’s triumph over visual impairment. It highlights societal stigma, marginalization, and the lack of support for Persons with Disabilities (PwDs).

Status of Education and Jobs for PwD’s in India:

  • Limited Employment Opportunities: A 2023 report indicates that only five out of 50 Nifty 50 companies employ more than 1% of persons with disabilities (PwDs), with most being public sector firms.
  • Gap in Accessibility and Supply: Less than 1% of educational institutions in India are disabled-friendly, highlighting a significant gap in accessibility and support for PwDs in both education and employment sectors.
  • Inadequate Infrastructure: Data shows that fewer than 40% of school buildings have ramps, and only about 17% have accessible restrooms.
  • Lack of effective implementation: Despite legislative provisions for reservations in government jobs under the Rights of Persons with Disabilities Act, 2016, there is a lack of effective implementation, resulting in low participation of PwDs in the workforce.

Challenges Faced by Persons with Disabilities (PwD)

  • Social Stigma and Marginalization: PwDs face deep-rooted social stigma, which leads to discrimination and exclusion from various sectors, including education and employment.
  • Inaccessible Infrastructure: Many public and private spaces lack the necessary infrastructure to accommodate PwDs, such as ramps and accessible restrooms, which severely limits their mobility and independence. For example, Less than 40% of school buildings have ramps, and only about 17% have accessible restrooms.
  • Educational Barriers: Despite the Right to Education Act, many PwDs encounter barriers such as a lack of inclusive schools, trained teachers, and assistive technologies, leading to high illiteracy rates among disabled individuals.
  • Workplace Discrimination: PwDs often face discrimination in the workplace, including a lack of reasonable accommodations and societal prejudices that create a “glass ceiling” for their employment opportunities.

Erosion of Identity for PwDs

  • Negative Representation: The portrayal of PwDs in society often reduces them to objects of pity or ridicule. This negative representation contributes to a societal attitude that undermines their dignity and identity.
  • Perception as Burdens: Sociologists argue that PwDs are frequently seen as burdens on society, which affects their self-identity and societal participation. This perception is reinforced through media and public discourse.
  • Intersectionality of Disability: PwDs who also belong to marginalized castes or genders face compounded discrimination, creating a double or triple burden that further erodes their identity and social standing.
  • Social Exclusion: The stigma surrounding disabilities often leads to exclusion from social activities and relationships, reinforcing the idea that PwDs can only relate to one another, which diminishes their broader social identity.

Way forward: 

  • Enhance Accessibility: Ensure that educational institutions and workplaces are fully accessible by upgrading infrastructure and implementing inclusive design standards.
  • Combat Stigma and Promote Inclusion: Launch targeted awareness campaigns to challenge negative perceptions of PwDs and promote their positive contributions.

Mains PYQ: 

Q The Rights of Persons with Disabilities Act, 2016 remains only a legal document without intense sensitisation of government functionaries and citizens regarding disability. Comment. (2022)

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Tackling the frictions in cross-border payments  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Cross-Border Payments;

Why in the News?

Despite being worth $181.9 trillion in 2022, cross-border payments still have inefficiencies prompting the G-20 to focus on improving them for economic growth.

Present Status of the Global Cross-Border Payments Market

  • The cross-border payments market was valued at approximately $181.9 trillion in 2022 and is projected to reach $356.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.3% from 2023 to 2032.
  • The growth is driven by increasing globalization, the rise of e-commerce, and technological innovations in the financial sector. The demand for faster, more secure, and transparent payment solutions is compelling banks and fintech companies to enhance their offerings.
  • The market includes various channels such as bank transfers, money transfer operators, and card payments, with a significant share coming from business-to-business (B2B) transactions.

Difference Between Old and New Systems

 

Cross-Border Payment 

Features Challenges
Old System Cross-border payments relied on manual processes involving letters of credit, checks, and extensive documentation. It faced challenges such as high transaction costs, slow processing times, and limited access due to regulatory burdens.
New System Incorporates technological advancements such as blockchain, digital wallets, and instant payment systems.

Example:  peer-to-peer transactions and interlinked payment infrastructures

challenges around scalability, security, regulation and standardization.

Challenges to Cross-Border Payments

  • High Costs: Transaction fees remain a significant barrier, with various financial institutions imposing different charges that complicate cost-effectiveness.
  • Low Speed: Processing times can vary greatly, often taking several days due to intermediary banks and regulatory checks, which can frustrate users seeking rapid transactions.
  • Limited Access: Many individuals and businesses still face obstacles in accessing cross-border payment services, particularly in underbanked regions.
  • Insufficient Transparency: Users often lack clarity regarding fees, processing times, and the overall transaction process, leading to mistrust and reluctance to engage in cross-border transactions.
  • Regulatory Compliance: Navigating diverse legal frameworks across jurisdictions complicates transactions, with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations adding layers of complexity.

Way forward: 

  • Adoption of Emerging Technologies: Leveraging blockchain, digital currencies, and AI can streamline processes, reduce transaction costs, and enhance transparency, making cross-border payments faster and more accessible.
  • Regulatory Harmonization and Collaboration: Promoting global regulatory alignment and fostering collaboration between financial institutions and governments can simplify compliance, improve transaction efficiency, and broaden access to underbanked regions.

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Euthanasia Mercy Killing

How to ensure dignity for the terminally ill?  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Need legal clarity of Patient Rights;

Why in the News?

The Supreme Court of India denied permission to the parents of Harish Rana, a 32-year-old man in a vegetative state for 11 years, to remove his Ryles tube which is a device used for feeding.

  • A Ryles tube, also known as a nasogastric (NG) tube, is a medical device used for various purposes related to nutrition and gastric management. It is inserted through the nose, passing through the nasal cavity, down the esophagus, and into the stomach.

Recent Supreme Court Judgment:

  • The Bench headed by CJI D.Y. Chandrachud observed that the Ryles tube is not a life support system and therefore could not be withdrawn.
  • This decision has stirred legal and ethical debates, as the Supreme Court’s 2018 judgment permits the withdrawal of life support in terminal cases under the concept of “passive euthanasia.”
  • Passive euthanasia involves the withdrawal of medical treatment with the intention of hastening the death of a terminally ill patient. 
  • The Supreme Court initially legalized this practice in 2018, allowing patients to create a “living will” to refuse life-sustaining treatment when they are unable to communicate their wishes.

Ethical Challenges:

  • Question of whether the decision benefits the patient: The judgment raises concerns about whether the decision benefits the patient, as prolonging life in such a condition may increase suffering.
  • Prolonged suffering: The principle of not causing harm is challenged since keeping the patient in a vegetative state with artificial feeding may lead to prolonged suffering for both the patient and their caregivers.
  • Against Right to Life and Death: The patient’s rights to a dignified life and death may be compromised which is addressed in various judgments like Common Cause v. Union of India (2018). This judgment recognised the right to die with dignity as part of the right to life under Article 21.
  • Autonomy: The patient’s right to choose, which is central to the concept of dignity, has been overlooked. The judgment did not consider the wishes of the patient or their family in determining the course of action.

Need for Legal Clarity:

  • Distinguishing Euthanasia from Withdrawal of Life Support: There is a pressing need to legally clarify the difference between euthanasia and the withdrawal of futile life-sustaining interventions.  
  • Involvement of Medical and Ethical Experts: The decision-making process in such sensitive cases should involve palliative care physicians and ethical experts to ensure that medical and ethical considerations are fully addressed.
  • Advance Care Planning: Promoting Advance Medical Directives and Advance Care Planning is crucial to empower individuals to have control over their end-of-life decisions, ensuring that their rights to a good quality of life and death are respected.
  • Systemic Reforms: The judgment highlights the need for systemic reforms to avoid forcing families into legal battles and to ensure that patients’ rights are safeguarded with appropriate legal frameworks.

Conclusion: The recent Supreme Court judgment highlights the urgent need for legal clarity, ethical considerations, and systemic reforms to protect patient rights and ensure dignity in end-of-life decisions.

Mains question for practice:

Q Discuss the need for legal clarity and systemic reforms to uphold the dignity and rights of patients in end-of-life decisions. (150 words) 10M

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Goods and Services Tax (GST)

 Time to reset the GST system   

Note4Students

From UPSC perspective, the following things are important :

Mains level: Taxation; Issues related to GST;

Why in the News?

Most states appear to be opposed to altering the current five primary GST rate slabs: 0%, 5%, 12%, 18%, and 28%.

About Goods and Service Tax (GST):

  • The Goods and Services Tax (GST) in India was introduced by the Constitutional (One Hundred and First Amendment) Act of 2017. It is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments.
  • Under GST, the Central (CGST) and state government (SGST) share the authority to levy and collect taxes on goods and services. In the case of Inter-state transactions, Integrated GST (IGST) is applicable.

Essential Features of GST

  • Multiple Tax Levels: India’s GST system has multiple tax rates, with four primary tax rates (5%, 12%, 18%, and 28%). Additionally, there is a “zero rate” for certain essential goods and services (e.g. exports).
  • One Nation, One Tax: GST is based on the principles of value-added tax and applies to the supply of goods and services across the nation. It brings uniformity in the tax structure across India, eliminating the cascading effect of taxes.
  • Destination-Based Tax: This means that the revenue generated from GST is collected by the state where the goods or services are consumed, rather than where they are produced.
  • Eliminating Cascading Effect: Under the Indian GST system, businesses can claim input tax credit for the GST they paid on their purchases. This ensures that taxes are levied only on the value added at each stage of the supply chain.
  • Sector-specific Exemptions: Certain sectors, such as healthcare, education, and basic necessities like food grains, are either exempted from GST or have reduced tax rates to ensure affordability and accessibility.
  • Threshold Exemption: Small businesses with a turnover below a specified threshold (currently, it is 20 lakhs: supplier of both goods & services and 40 lakhs: for supplier of goods (Intra–State) in India) are exempt from GST.

Present Challenges in GST Rates

  • Complexity and Confusion: The existence of multiple GST slabs creates confusion for businesses and consumers alike. Different rates for similar items lead to complications in compliance and classification, resulting in litigation and disputes.
    • For instance, the GST on cement is 28%, while essential items like milk are exempt, yet products derived from milk, such as skimmed milk powder, are taxed at 5%.
  • Anomalies in Taxation: There are notable inconsistencies in the application of GST rates. For example, the taxation of medical and life insurance premiums at 18% is seen as burdensome for individuals seeking financial protection against uncertainties.

Need to simplify the current GST Slabs

  • Rationalization Proposal: There is a growing consensus among industry experts and some government officials that the GST structure should be simplified to a maximum of three slabs. 
    • This would not only streamline compliance but also reduce the administrative burden on businesses and the government alike.
  • Economic Stimulus: Simplifying GST rates could potentially stimulate economic activity by lowering indirect tax burdens, encouraging consumption, and ultimately leading to higher tax revenues.

Why are states resisting?

  • Fear of Revenue Loss: Many states are apprehensive about the implications of changing the GST structure, fearing that it might lead to a decrease in their revenue streams.
  • Political Considerations: The political landscape also plays a role in the resistance to change. With upcoming elections and the need to maintain fiscal health, state governments may prioritize short-term revenue stability over long-term structural reforms.

Way forward: 

  • Phased Implementation: Start by introducing pilot programs in select states or sectors to test the impact of GST simplification. This approach can help address specific concerns and refine the model before a nationwide rollout.
  • Revenue Protection Schemes: Develop robust mechanisms to compensate states for any potential revenue losses during the transition. This could involve a formula-based compensation fund or a temporary revenue guarantee.

Mains PYQ: 

Q Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? (2020)

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

The road to 2047 for Indian agriculture   

Note4Students

From UPSC perspective, the following things are important :

Mains level: Challenges to Indian agriculture;

Why in the News?

India’s 100th independence anniversary in 2047 is approaching, and the goal to become ‘a developed nation’ has a significant focus.

Goals of Indian Agriculture by Vision 2047:

  • Comprehensive Goal: India’s centennial year of independence requires a six-fold increase in per capita Gross National Income (GNI), emphasizing the need for comprehensive development, especially in agriculture.
  • Trade Goal: India’s agricultural and processed food exports have gone up to more than USD 50 billion in 2022-23.
    • The Vision 2047 aims to improve the availability of nutritious foods by enhancing the processing of fruits and vegetables, and augment the proportion of value-added products in India’s export portfolio.
  • Sustainable Goal: Transforming Indian agriculture will hinge on adopting sustainable practices such as precision farming, genetically modified crops, and advanced irrigation techniques (e.g., drip and sprinkler systems).

Present starking Imbalance in the Indian Economy

  • Workforce vs. GDP Contribution: Despite agriculture engaging nearly 46% of the workforce, it contributes only about 18% to the GDP, revealing a significant imbalance.
  • Growth Disparity: While the overall GDP has grown at 6.1% annually since 1991-92, agricultural GDP has lagged at 3.3%. In the last decade (2013- 2023), overall GDP growth was 5.9%, with agriculture growing at 3.6%, which is insufficient for the sector’s socio-economic importance.
  • Future Projections: By 2047, agriculture’s share in GDP might shrink to 7%-8%, but it could still employ over 30% of the workforce, necessitating significant structural changes to avoid exacerbating the disparity.

Government Initiatives:

  • For Water Management: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has promoted water-use efficiency through micro-irrigation, covering 78 lakh hectares with a ₹93,068 crore allocation for 2021-26.
  • For Risk Management: The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers financial assistance for crop losses, with 49.5 crore farmers enrolled and claims totalling over ₹1.45 lakh crore.
  • For Market Access: The Electronic National Agriculture Market (eNAM) integrates existing markets through an electronic platform, benefiting 1.76 million farmers and recording trade worth ₹2.88 lakh crore by September 2023.
  • For better Farmer Support: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, disbursing ₹6,000 annually to farmers, has benefited over 11.8 crore farmers.
  • For enhanced Soil Health: The Soil Health Card (SHC) scheme aims to optimize soil nutrient use, enhancing productivity, with over 23 crore SHCs distributed.

Need for Strategic Planning

  • Population Growth: India’s population is projected to reach 1.5 billion by 2030 and 1.59 billion by 2040, increasing the demand for food by approximately 2.85% annually.
  • Future Demand: By 2047-48, food grain demand is projected to range from 402 million tonnes to 437 million tonnes, requiring sustainable production exceeding demand by 10%-13% under the Business-As-Usual scenario.

Way Forward: 

  • Investment in R&D: To meet future demands sustainably, significant investments in agricultural research, infrastructure, and policy support are necessary.
  • Budget Allocation: The Budget for 2024-25 includes ₹20 lakh crore for targeted agricultural credit and the launch of the Agriculture Accelerator Fund, highlighting a proactive approach to fostering agricultural innovation and growth.
  • Enhance Digital Infrastructure: Support and expand digital platforms like eNAM to improve market access, provide real-time data, and facilitate better price realization for farmers.

Mains PYQ: 

Q Give the vulnerability of inidan agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Building on favourable change in the 2024 Waqf Bill  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Joint Parliamentary Committee (JPC); Waqf Board Act;

Mains level: Role of Waqf Board;

Why in the News?

The Waqf Bill 2024, also known as the Waqf (Amendment) Bill, has been referred to a Joint Parliamentary Committee (JPC) after allies of the Narendra Modi government expressed reluctance to pass it immediately, and opposition parties voiced criticism of the Bill.

Concerns Acknowledged by the JPC

  1. Inclusion of Non-Muslims: The proposal to include non-Muslim members in state waqf boards has faced significant opposition. Critics argue that this undermines the religious autonomy of Muslim institutions, as similar provisions do not exist for Hindu temples or other religious bodies.
  2. Increased Authority of District Collectors: The Bill grants more powers to district collectors, allowing them to arbitrate disputes over waqf properties. This has raised concerns about potential government overreach and the effectiveness of local waqf boards in managing properties.
  3. Impact on Inheritance Rights: The proposed changes could affect the inheritance rights of heirs, particularly women, by allowing the creation of family waqfs that may not fully comply with Islamic inheritance laws. This raises questions about fairness and equity in the distribution of waqf assets.

The rationale of the family waqt:

  • Family waqf is rooted in the Islamic principle that charity begins at home
  • The Quran encourages spending money on parents and relatives (2:215), and the Prophet Muhammad emphasised the importance of spending on one’s family as a highly rewarded act of charity.

 

  1. Potential for Misuse: There are fears that the amendments could lead to the misuse of waqf properties, exacerbating existing issues of encroachment and mismanagement, rather than effectively addressing them.

Newly Proposed Section 3A(2)

  • Key Features: This section stipulates that a Muslim can create a family waqf only concerning one-third of their property if excluding heirs, and it prohibits the complete exclusion of female heirs. However, it allows for the possibility of token benefits being granted to female heirs, which could still result in unequal distributions.
  • Concerns: Critics argue that this provision may not sufficiently protect women’s rights under Islamic inheritance laws, as it could permit arrangements that do not provide equitable benefits to female heirs compared to their male counterparts.

Implementation of Waqf Boards Worldwide

  • India: India has 30 waqf boards, each responsible for managing waqf properties within their respective states. These boards oversee approximately 900,000 properties, with a focus on ensuring that waqf assets are used for charitable purposes.
  • Middle Eastern Countries: In many Middle Eastern nations, waqf properties are often managed by government-appointed bodies, and the legal framework tends to be more integrated with Islamic law. For instance, in countries like Egypt and Turkey, waqf management is closely tied to state regulations, which can vary significantly from those in India.
  • Colonial impact: The evolution of waqf laws has been influenced by colonial histories, with some countries, such as Egypt and Tunisia, abolishing family waqfs altogether, while others, like Malaysia and Indonesia, have maintained them with varying degrees of regulation.

Way forward:

  • Strengthen Waqf Governance: Ensure robust oversight and accountability of waqf boards by balancing state involvement with respect for religious autonomy. This includes safeguarding the inheritance rights of heirs, particularly women, and preventing government overreach while maintaining effective management of waqf properties.
  • Promote Inclusivity and Equity: Amend the Waqf Bill to address concerns about the inclusion of non-Muslims in waqf boards and ensure equitable distribution of waqf assets in line with Islamic inheritance laws.

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Foreign Policy Watch: India-China

 How South China Sea tensions pose a threat to international trade? 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: South China Sea;

Mains level: Significance of South China Sea;

Why in the News?

Tensions between China and the Philippines have sharply escalated after a violent clash between their sailors in the South China Sea (SCS) last week. Currently, escalating tensions in the South China Sea are heightening global security concerns over this vital trade route.

How Important is the South China Sea for World Trade?

  • About a third of global maritime trade passes through the 3.5 million square kilometre South China Sea annually, according to UNCTAD.
  • Around 40% of petroleum products traded globally are delivered via the South China Sea every year.
  • In 2016, an estimated $3.4 trillion to $3.6 trillion worth of goods and commodities travelled the seaway.
  • Tens of thousands of cargo vessels move through the South China Sea every year, carrying around 40% of China’s, one-third of India’s and 20% of Japan’s trade with the rest of the world.
  • The South China Sea is a vital crossroads for both intra-Asian trade as well as for commerce with the rest of the world, especially Europe, the Middle East and Africa.

What makes the South China Sea such a Controversial Issue?

  • Beijing claims almost all of the South China Sea as its own, angering its neighbours who say China’s territorial ambitions cut into their exclusive economic zones.
  • China ignored a 2016 ruling by an international arbitration court that Beijing has no legal or historical basis for its expansive claims under international law.
  • The Chinese military has staged increasingly aggressive actions in the seaway recently, including clashes with Filipino ships, fueling fears of a full-scale conflict.
  • Vietnam and the Philippines have filed claims with the UN for extended continental shelves in the South China Sea.
  • Concerns that Beijing may use military force to bring Taiwan under its control have further raised tensions in the region.

Why is the South China Sea Contested?

  • Availability of Natural gas and oil: The South China Sea is estimated to hold about 5.38 trillion cubic meters of proven and probable natural gas and 11 billion barrels of oil reserves.
  • Rare earth elements: The disputed waters also contain large deposits of rare-earth minerals crucial to China’s technological ambitions, including electric vehicle batteries and advanced electronics.
    • Some estimates suggest the Pacific Ocean contains a thousand times more rare-earth minerals than the currently known land reserves, more than half of which are controlled by China.

Biggest Chokepoint in the South China Sea

  • The Malacca Strait, which lies between Malaysia, Indonesia and Singapore, is considered the biggest chokepoint in the South China Sea.
  • Last year, 23.7 million barrels of oil and petroleum products were moved through the strait per day, 13% higher than through the Strait of Hormuz.
  • The Malacca Strait is just 64 kilometers wide at its narrowest point and is already vulnerable to congestion and collisions.
  • Experts predict that if China invades Taiwan, the U.S. and its allies could blockade the Malacca Strait, limiting China’s access to oil and exports

What should India do? (Way forward)

  • Enhance Strategic Partnerships: India should strengthen its maritime collaborations with key regional players like ASEAN nations, Japan, and Australia while deepening its involvement in forums such as the Quad to promote a rules-based order in the Indo-Pacific and ensure freedom of navigation in the South China Sea.
  • Bolster Naval Capabilities: India should continue to modernize and expand its naval presence in the Indo-Pacific, focusing on securing critical sea lanes and chokepoints like the Malacca Strait to safeguard its trade routes and energy supplies in the event of escalating tensions.

Mains PYQ:

Q South China Sea has assumed great geopolitical significance in the present context. Comment.(2016)

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Foreign Policy Watch: United Nations

Dealing with Death at Work    

Note4Students

From UPSC perspective, the following things are important :

Mains level: Safety Law and Guidelines; Importance of Safety Audits;

Why in the News?

On August 21, 2024, a deadly explosion at the Escientia plant in Atchutapuram SEZ killed 17 workers and injured over 50, triggered by a solvent leak involving MTBE. The incident, part of a troubling safety trend, has prompted a government inquiry and calls for stricter safety regulations, particularly due to the exemption from regular inspections for SEZ units.

  • Previous Incidents: This accident is part of a troubling pattern, as it follows another major explosion in the same SEZ last year, and recalls a deadly styrene vapour leak incident in 2020 that killed 12 people.
  • Government Response: The Andhra Pradesh government has ordered a high-level inquiry into the incident. Chief Minister N. Chandrababu Naidu has expressed condolences and promised support for the victims’ families.

Importance of Safety Audits

  • Preventing Future Accidents: Regular safety audits can help identify potential hazards and ensure compliance with safety regulations, reducing the risk of catastrophic incidents.
  • Accountability: Audits enforce accountability among management to adhere to safety standards, promoting a culture of safety within organizations.
  • Regulatory Compliance: Conducting safety audits helps organizations ensure compliance with local, state, and national safety regulations.
  • Public Trust: Enhancing safety measures and transparency can restore public confidence in industrial operations, particularly in regions prone to industrial accidents.

Safety Law and Guidelines:

  • Factories Act, 1948: Governs worker safety in factories, mandating safety audits and safety officer appointments. Requires safety committees with management and employee reps to address hazards.
  • IS 14489:1998: Provides guidelines for occupational safety and health audits, focusing on compliance, deviations, and safety management effectiveness across sectors.
  • Occupational Safety, Health and Working Conditions Code, 2020: Consolidates labor laws, mandates regular safety audits for hazardous processes, and grants inspectors authority to enforce compliance.
  • CIMAH Rules: Require industries with hazardous processes to prepare safety reports and conduct regular audits to prevent major accidents, enforced by state safety authorities.
  • Integrated Guidance Framework for Chemicals Safety: Offers guidance for safety audits in handling hazardous chemicals, emphasizing compliance with MSIHC Rules and robust audit practices.

Note:

IS 14489:1998 is an Indian Standard titled “Code of Practice on Occupational Safety and Health Audit.” It provides comprehensive guidelines for conducting occupational safety and health audits in various workplaces.

Way forward: 

  • Implement Regular Safety Audits: Enforce routine safety audits for all industrial units, including SEZs, to identify hazards and ensure compliance with safety standards, thus preventing future incidents and promoting a culture of safety.
  • Strengthen Regulatory Oversight: Close regulatory gaps by applying safety standards uniformly across all sectors, including exempted units, and enhance transparency and accountability in safety practices to restore public trust.

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Civil Services Reforms

Centre directs UPSC to withdraw ad for lateral entry into bureaucracy: Why has the policy been criticized?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is ‘Lateral Entry’ into the Bureaucracy?

Mains level: Logic behind introducing Lateral Entries;

Why in the News?

The Central government asked the Union Public Service Commission (UPSC) on Tuesday, August 20, to cancel an advertisement from three days earlier that called for applications to fill senior government positions through lateral recruitment.

What is ‘Lateral Entry’ into the Bureaucracy?

  • Definition: Lateral entry refers to the recruitment of personnel from outside the traditional civil services into senior and middle-level positions in the central government. These entrants come from various backgrounds, including state/UT governments, public sector undertakings (PSUs), statutory organizations, research institutes, universities, and the private sector.
  • Objective: The idea is to bring in individuals with domain expertise and specialized knowledge to enhance the efficiency and effectiveness of governance. These individuals are usually appointed on contracts of three years, which can be extended to a total of five years.

What are the Positions Open for Lateral Entry?

  • Positions Advertised: Lateral entry initially focused on Joint Secretary-level positions, which are high-ranking roles within a Department. Over time, positions for Director and Deputy Secretary levels were also opened.
  • Roles and Responsibilities:
    • Joint Secretary: Third-highest rank in a Department, responsible for decision-making and administrative head of a wing within the Department.
    • Director/Deputy Secretary: Middle-level officials, performing roles similar to Joint Secretaries in most ministries.

What was the Union Government’s Logic Behind Introducing Lateral Entries?

  • Rationale: The government introduced lateral recruitment to bring in fresh talent and specialized skills that may not be available within the traditional civil services.
  • NITI Aayog’s Recommendation: The policy was recommended in 2017 by NITI Aayog in its three-year Action Agenda and by the Sectoral Group of Secretaries (SGoS) on Governance.

How Many People Have Been Appointed via Lateral Recruitment So Far?

  • First Round (2018): The first round attracted 6,077 applications for Joint Secretary-level positions. Nine individuals were eventually selected and appointed in 2019.
  • Subsequent Rounds: Additional rounds of recruitment occurred in 2021 and May 2023. As of August 2024, a total of 63 appointments have been made through lateral entry, with 57 lateral entrants currently holding positions in various Ministries/Departments.

What is the Criticism of Lateral Entry Recruitment?

  • Lack of Reservations: A significant criticism of lateral recruitment is the absence of quotas for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
  • Promotion Concerns: Critics like Mayawati have pointed out that lateral entry deprives lower-level employees in the civil services of promotion opportunities, which would otherwise be available through a merit-based system.

Way forward: 

  • Incorporate Inclusive Quota Provisions: To address the criticism regarding the absence of reservations, the government could consider introducing a reservation policy for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) in lateral entry recruitment.
  • Establish a Transparent and Merit-Based Selection Process: To ensure the credibility and effectiveness of lateral recruitment, the government should enhance transparency in the selection process. This could involve clearly defined eligibility criteria, objective assessment methods, and regular monitoring of the performance of lateral entrants.

Mains PYQ:

Q Has the Cadre-based Civil Services Organization been the cause of slow in India? Critically examine. (UPSC IAS/2014)

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Foreign Policy Watch: India-SAARC Nations

India-Malaysia Comprehensive Strategic Partnership

Note4Students

From UPSC perspective, the following things are important :

Mains level: Importance of Malaysia for India;

Why in the News?

India and Malaysia have elevated their relationship to a ‘Comprehensive Strategic Partnership’ following talks between Prime Ministers Modi and Ibrahim, aiming to overcome past tensions.

What is a Comprehensive Strategic Partnership (CSP)?

  • The Comprehensive Strategic Partnership (CSP) represents a deepened level of engagement between two nations, encompassing a broad spectrum of areas such as political, economic, cultural, and security cooperation.
  • This partnership reflects a commitment to working closely across these domains to achieve mutual goals.

Upgradation of ties between India and Malaysia:

  • The recent upgrade includes agreements and MoUs in workers’ mobility, digital technology, culture, tourism, sports, and education.
  • India has also agreed to support Malaysia’s bid to join the BRICS grouping, which the Malaysian Prime Minister has been advocating for.
  • The leaders discussed new areas of cooperation, including semiconductors, fintech, defence industry, artificial intelligence (AI), and quantum technologies.
  • A special allocation of 200,000 metric tonnes of white rice was granted by India to Malaysia in response to Malaysia’s request, reflecting India’s role in Malaysia’s food security.

Bilateral Friction between India and Malaysia:

  • Citizenship Amendment Act (CAA): During the Kuala Lumpur Summit in December 2019, Malaysian PM Mahathir Mohamad criticized India’s CAA, which provides a pathway to citizenship for non-Muslim refugees from Afghanistan, Bangladesh, and Pakistan.
  • Reorganisation of Jammu and Kashmir: Mahathir Mohamad also voiced strong criticism regarding India’s reorganization of Jammu and Kashmir, particularly after the revocation of its special status in August 2019.
  • Extradition of Zakir Naik: India’s repeated requests for the extradition of Zakir Naik, wanted on charges of hate speech and money laundering, have been denied by Malaysia, citing insufficient evidence.
  • COVID-19 Pandemic: During the pandemic, hundreds of Malaysians were detained in India due to the lockdown, further adding to tensions.

Way forward: 

  • Enhance Diplomatic Engagement: Continue regular high-level dialogues to resolve sensitive issues and foster mutual trust, focusing on joint working groups for contentious matters like extradition and human rights.
  • Expand Strategic and Economic Collaboration: Prioritize joint ventures and research in emerging sectors such as fintech, AI, and quantum technologies to strengthen economic ties and minimize political friction.

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

A ground plan for sustainable mass employment 

Note4Students

From UPSC perspective, the following things are important :

Mains level: Challenges due to Low wages and short-term skill programs;

Why in the News?

The ambitious ₹2 lakh crore employment package aims to create 4.1 crore jobs, but evidence shows low wages and short-term skill programs hinder long-term sustainability.

Low wages and short-term skill programs hinder long-term sustainability:

  • Low Wages Lead to Economic Insecurity: Low wages create economic insecurity for workers, making it difficult for them to meet basic needs. For instance, in the garment industry, there is a 48.5% gap between minimum wages and living wages in major garment-producing countries.
  • Short-Term Skill Programs Fail to Enhance Employability: Many short-term skill programs do not provide the depth of training needed for long-term employability. In India, for example, 75% of technical graduates and 90% of other graduates are considered unemployable, primarily due to a lack of practical skills and experience that employers seek.
  • Stagnation of Workforce Productivity: When workers are paid low wages, there is little incentive for them to enhance their skills or productivity. This stagnation is detrimental to both individual career growth and overall economic development.
  • Lack of Investment in Long-Term Skill Development: Low wages often correlate with limited investment in employee training and development.This is evident in the fact that only 15% of those trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) found jobs, indicating that short-term training initiatives are not effectively translating into sustainable employment outcomes.
  • Perpetuation of Poverty and Inequality: The combination of low wages and inadequate skill development contributes to the perpetuation of poverty and inequality. With 42% of the global workforce in vulnerable employment.

12-point policy initiatives for sustainable mass employment:

  • Identify the skill need: Begin from below through decentralized community action to identify skilling needs. Create a register of those wanting employment/self-employment and a plan for every youth in partnership with professionals at the cluster level.
  • Initiative at the local level: Converge initiatives for education, health, skills, nutrition, livelihoods, and employment at the local government level with women’s collectives to ensure community accountability and effective outcomes.
  • Vocational programmes: Introduce need-based vocational courses/certificate programmes alongside undergraduate programmes in every college to improve employability.
  • Healthcare at international benchmark: Standardize nursing and allied health-care professional courses according to international benchmarks to meet the demand for skilled professionals.
  • Women security: Create community cadres of caregivers to run crèches universally so that women can work without fear.
  • Invest in skill development: Invest in ITIs, and polytechnics as hubs in skill development for feeder schools with a focus on States/districts with the least institutional structure for vocational education.
  • Startup skills in high school: Introduce enterprise and start-up skills through professionals in high schools to impart finishing skills to students.
  • Apprenticeship program in Industry: Have a co-sharing model of apprenticeships (combine practical training in a job with study) with the industry on scale to ensure the industry has a stake in the apprenticeship program.
  • Absorption of youth at the workplace: Apprenticeships on the scale can facilitate the absorption of youth in the workplace, with the government’s condition for employer subsidies being wages of dignity on successful completion of the apprenticeship.
  • Capital oan for women: Streamline working capital loans for women-led enterprises/first-generation enterprises to enable them to go to scale.
  • Skill accreditation programme: Start a universal skill accreditation programme for skill-providing institutions, with candidates co-sponsored by the state and employers.
  • Majority of fund in water scares block: Use 70% funds under MGNREGA in 2,500 water-scarce blocks and blocks with high deprivation, with a thrust on the poorest 20 families and a focus on skills for higher productivity.

Way forward: 

  • Strengthen Industry-Academia Linkages: Enhance collaboration between educational institutions, industry, and vocational training centers to align curricula with industry needs, ensuring employability through internships, apprenticeships, and job placements.
  • Focus on Inclusive Skill Development: Prioritize investment in underdeveloped regions and marginalized groups by expanding access to quality education, vocational training, and entrepreneurship opportunities, especially for women and youth, to bridge the skill gap and promote economic inclusion.

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Innovations in Biotechnology and Medical Sciences

Can blood tests for cancer save more lives? 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Status of Cancer in India;

Mains level: Limitation of Multi-Cancer Early Detection (MCED) Test;

Why in the News?

A multi-cancer early detection test can identify circulating tumour DNA or circulating tumour cells at an early stage, allowing for more effective treatment.

Status of Cancer:

  • Cancer’s Impact in India: Cancer accounts for 18% of deaths from noncommunicable diseases in India, making it the second leading cause of mortality. In 2022, there were approximately 1.46 million new cancer cases, with projections indicating a 12% increase by 2025.
  • Common Cancers as per GLOBOCAN: Among women, the most prevalent cancers are breast, cervical, ovarian, and colorectal.
    • For men, lung, esophageal, colorectal, and stomach cancers are the most common.
  • Survival Rates and Detection: Late detection of cancer significantly reduces survival rates and increases treatment costs. In contrast, early detection through screening improves treatment outcomes and quality of life. 
    • Countries are aligning with the United Nations’ Sustainable Development Goals 3 to enhance early cancer detection.
  • Limited screening: As per NHFS, screening is limited in India which is primarily to cervical, breast, and oral cancers, with only 0.2-2% of the population having undergone any form of screening.

What is a Multi-Cancer Early Detection (MCED) Test?

  • A multi-cancer early detection (MCED) test is a new type of blood test that can screen for multiple types of cancer simultaneously. These tests look for cancer signals, such as circulating tumor DNA (ctDNA) and circulating tumor cells (CTCs), released by cancerous cells into the bloodstream at early stages.

Role of Blood-based tests in the detection of cancer:

  • Early Detection of Multiple Cancer Types: Blood tests, particularly multi-cancer early detection (MCED) tests, can identify cancer signals from over 50 different types of cancer, including those that currently lack effective screening methods.
    • For example, a recent study demonstrated that a new blood test could detect 93% of stage 1 cancers in men and 84% in women by analyzing protein biomarkers.
  • Non-Invasive and Accessible Screening: Blood tests are non-invasive and can be performed with a simple blood draw, making them more accessible compared to traditional screening methods like colonoscopies or imaging tests. This ease of use encourages more individuals to participate in screening.

Limitation of blood test in the detection of Cancer:

  • Lack of Proven Mortality Benefit: It is still unclear whether detecting cancers earlier with MCED tests will actually reduce cancer deaths. More research is needed to determine if earlier treatment based on MCED results improves outcomes compared to waiting for symptoms to develop.
  • Regulatory Challenges: MCED tests are not yet approved by regulatory bodies like the U.S. FDA or India’s CDSCO because of not undergone rigorous premarket review to prove they benefit patients.
  • False Positives: One significant risk is false positive results, where the test indicates cancer when none is present. When multiple tests are used for screening, the false positive rate can be as high as 50%.

Way forward:

  • Strengthening Screening Infrastructure and Research: India should invest in expanding its cancer screening infrastructure, ensuring that more types of cancer are included beyond cervical, breast, and oral cancers.
  • Public Awareness and Regulatory Preparedness: Increasing public awareness about the importance of early cancer detection is crucial. At the same time, regulatory bodies like CDSCO should establish clear guidelines and frameworks for the evaluation, approval, and monitoring of MCED tests.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

The path to Viksit Bharat runs through fields  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Viksit Bharat@2047;

Mains level: Economic and Military challenges for India;

Why in the News?

India’s 78th Independence Day is a time to reflect on our significant successes and setbacks. We should learn from both to make quicker progress towards the Prime Minister’s vision of a Viksit Bharat@2047 by 2047.

Key Aspects of Viksit Bharat@2047

  • Economic Growth: The vision aims to elevate India to the status of the world’s third-largest economy and strive for a $30 trillion economy by 2047.
  • Environmental Sustainability: Viksit Bharat aims to preserve biodiversity and mitigate climate change impacts through restoration and conservation efforts.
  • Social Progress: The initiative seeks to build an inclusive society that respects cultural diversity and ensures the dignity and well-being of all citizens.
  • Good Governance: Effective governance is a cornerstone of the Viksit Bharat vision, focusing on accountability, transparency, and sound policies that are responsive to the needs of the people.
  • Youth Engagement: Recognizing the potential of India’s youth, the government has launched initiatives like the “Voice of Youth” portal to encourage young people to contribute ideas for achieving the goals of Viksit Bharat.

Economic Challenges

  • Weak Domestic Demand: Stagnant or declining demand for goods and services due to low-income growth, high inflation, unemployment, and the impact of the Covid-19 pandemic.
  • High Unemployment: Despite rapid growth, unemployment remains a serious issue, worsened by the pandemic. The unemployment rate in India rose to 8.1 per cent in April 2024 from 7.4 per cent in March 2024, according to CMIE’s Consumer Pyramids Household Survey. 
  • Poor Infrastructure: India lacks adequate infrastructure like roads, railways, ports, power, water and sanitation, hampering economic development. The infrastructure gap is estimated at around $1.5 trillion.
  • Balance of Payments Deterioration: India runs a persistent current account deficit, with imports exceeding exports. Exports and imports decreased by 6.59% and 3.63% respectively in 2022.
  • High Private Debt Levels: India has witnessed a significant rise in debt levels in recent years.
    • According to the Reserve Bank of India (RBI), the total non-financial sector debt reached 167% of GDP in March 2020, up from 151% in March 2016. 
    • Household debt in India rose to 40.10% of GDP in the fourth quarter of 2023, up from 39% in the previous quarter. 

Military Challenges

  • Securing Borders: Despite conflicts with Pakistan and China, India has reasonably managed border security. However, the rapid rise of China poses economic and military challenges.
  • China’s Growing Influence: Almost all of India’s neighbours are moving closer to China, necessitating better policy and diplomacy to secure India’s interests and ensure regional stability.
  • Military Modernization and Resource Allocation: India’s dependence on foreign arms imports, despite efforts to promote self-reliance through initiatives like “Make in India,” highlights the need for a robust domestic defense industry.
    • The country has been the largest arms importer from 2018 to 2022, indicating ongoing challenges in achieving military self-sufficiency

Suggestive measures: (Way forward)

  • Agricultural Reforms: Investment in agricultural research and development, irrigation, and land-lease markets is vital. Building value chains for perishables can enhance food security and adapt to climate challenges.
  • Nutritional Security: Transitioning from mere food security to nutritional security is crucial, addressing issues like child malnutrition, which affects 35% of children under five.
  • Support for Farmers: Implementing subsidies for pulses and other sustainable crops can encourage healthier diets and environmental benefits. The government should provide financial incentives to farmers to shift from water-intensive crops to pulses.
  • Infrastructure Development: Continued investment in infrastructure, including transportation and digital connectivity, is essential for economic growth and improving citizens’ quality of life.
  • Education and Skill Development: Reforms in education to prioritize skill development and innovation are necessary to prepare the workforce for emerging industries and ensure inclusive growth.
  • Healthcare Initiatives: Expanding access to affordable healthcare services nationwide is critical for enhancing public health and productivity.

Mains PYQ:

Q Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (UPSC IAS/2016)

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Poverty Eradication – Definition, Debates, etc.

The tyranny of inequality  

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues Associated with measuring income inequality;

Why in the News?

A recent study by Thomas Piketty and colleagues highlights a dramatic rise in wealth and income inequality in India over the past few decades, with a sharp increase particularly from 2014 to 2022.

The analysis from ” Gallup World Poll (GWP) Survey (2019-23)” for India  

Note: The GWP measures corruption through individual perceptions, asking respondents whether they believe corruption is widespread.
  • Income Inequality: The survey data indicates a significant rise in income inequality, with the top 1% controlling over 40% of total wealth in India, a stark increase from 12.5% in 1980.
    • The top 1% of income earners now receive 22.6% of the country’s total pre-tax income, up from 7.3% in 1980.
  • Rent-Seeking Behavior: The persistence of rent-seeking behavior among wealthy investors, which diverts resources from productive uses to securing unwarranted gains from government entities.
  • Judicial Trust and Corruption: Trust in the judiciary can play a significant role in curbing corruption. Higher trust correlates with lower perceived corruption levels.
  • Mutual Fund vs Fixed deposits: Speculative investments, such as mutual funds, largely drive income inequality, while savings in fixed deposits and post offices help curb it.
  • Inequality promotes corruption: The study finds that higher income inequality causes widespread corruption, while greater confidence in the judiciary helps reduce it.

What is our present methodology for counting inequality?

  • Piketty’s Measure: Thomas Piketty’s measure compares the income share of the top 1% to that of the bottom 50%. This highlights the growing disparity in income distribution effectively.
  • Consumption vs Income Inequality: Inequality is traditionally measured using consumption expenditure surveys by the National Sample Survey Office (NSSO). However, consumption inequality tends to be lower than income inequality.
  • Use of Multiple Data Sources: Researchers often combine data from various sources, including national accounts, tax data, and recent surveys like the Periodic Labour Force Surveys (PLFS) and Consumer Pyramid Household Survey (CPHS).
  • Gini Index and Other Metrics: The Gini index is frequently used to quantify inequality, but it has limitations, being less sensitive to changes at the income distribution extremes.

Issues Associated with measuring income inequality:

  • Data quality and availability: There has been a noted decline in the reliability of household surveys since 2011-12, making it difficult to obtain accurate and comparable data. For example, The 55th NSS round showed a dramatic decline in poverty estimates, which many experts deemed misleading due to the survey’s methodological flaws.
  • Underreporting of wealth: Surveys may underreport wealthier households’ consumption, leading to inaccurate inequality assessments. For example, the Household Consumption Expenditure Survey (HCES) 2022-23 reported a significant drop in rural and urban poverty levels. However, critics argue that these figures may not accurately reflect the reality of wealthier households
  • Comparability with other countries: India’s reliance on consumption data rather than income data can result in mischaracterization as a low-inequality country in international comparisons.
  • Focus on labor income: Some reports focus only on labor income, ignoring other income sources and skewing the understanding of overall inequality. For example, studies have shown that the income share of the top 10% in India has grown significantly, while labour income alone does not reflect this concentration adequately
  • Complexity of income dynamics: Accurately assessing inequality is challenging due to the influence of economic policies, globalization, and market forces. For instance, Researchers have noted that the absence of comprehensive tax data beyond 2017-18 adds uncertainty to the analysis of income inequality trends

Way forward: 

  • Improve Data Collection and Methodologies: There is an urgent need to enhance the quality and reliability of household surveys and other data sources.
  • Broadening Income Metrics Beyond Labor Income: To better capture the full spectrum of income inequality, it’s essential to include non-labor income sources, such as capital gains, property income, and speculative investments.

Mains PYQ:

Q It is argued that the strategy of inclusive growth is intended to meet the objective of inclusiveness and sustainability together. Comment on this statement. (UPSC IAS/2019)

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