Explained | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014

Mains level: Challenges related to Act implementation

Why in the News?

The Street Vendors Act was celebrated as a progressive legislation, but the law now faces numerous challenges in its implementation.

The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014:

	Details
Introduction and Objective	Introduced in Lok Sabha on 6 September 2012 by Kumari Selja, Union Minister of Housing and Urban Poverty Alleviation. Objective: Regulate street vendors and protect their livelihoods.
Enactment and Implementation	Came into force on 1 May 2014. Aims to legalize vending rights and establish mechanisms for protection and regulation. State-level rules and schemes are developed for execution.
Roles and Responsibilities	Delineates roles of street vendors and government. Commits to accommodating existing vendors in vending zones and issuing vending certificates.
Participatory Governance	Establishes Town Vending Committees (TVCs). Representation: 40% of TVC members, with 33% for women SVs. TVCs tasked with including all existing vendors in zones.
Grievance Redressal	Mechanisms for addressing grievances and Establishes Grievance Redressal Committee chaired by civil judge or judicial magistrate.
Survey and Identification	States/ULBs conduct surveys to identify vendors at least once every five years.
Certificate of Vending	Granted to vendors above 14 years. Can be transferred to family members. Can be cancelled

Significance of street vendors

Role of Street Vendors: Street vendors constitute about 2.5% of any city’s population and play multifaceted roles in city life, providing essential services, modest income for migrants and the urban poor, and affordable goods for others.
Integral to Urban Life: Street vendors are essential for maintaining affordability and accessibility to food, nutrition, and goods distribution, and they are integral to the cultural fabric of cities like Mumbai and Chennai.

Challenges faced during the implementation:

Administrative Challenges: Increase in harassment and evictions of street vendors despite the Act’s emphasis on protection and regulation.Outdated bureaucratic mindset viewing vendors as illegal entities.
- Lack of awareness and sensitization about the Act among state authorities, the public, and vendors.
- Limited influence of street vendor representatives in Town Vending Committees (TVCs), often remaining under the control of local city authorities.Tokenistic representation of women vendors in TVCs.
Governance Challenges: Weak existing urban governance mechanisms.
- Lack of integration of the Act with the framework established by the 74th Constitutional Amendment Act for urban governance.
- Insufficient powers and capacities of ULBs.
- Focus on top-down policies like the Smart Cities Mission on infrastructure development, ignoring provisions for the inclusion of street vendors in city planning.
Societal Challenges: The prevailing image of the ‘world-class city’ tends to be exclusionary.Marginalization and stigmatization of street vendors as obstacles to urban development rather than legitimate contributors to the urban economy.
- Reflection of these challenges in city designs, urban policies, and public perceptions of neighborhoods.

Way forward

Decentralization of Interventions: There’s a need to decentralize interventions and enhance the capacities of Urban Local Bodies (ULBs) to plan for street vending in cities.
Shift from Department-led Actions to Deliberative Processes: Moving away from high-handed department-led actions towards actual deliberative processes at the Town Vending Committee (TVC) level is crucial.
Amendments to Urban Schemes and Policies: Urban schemes, city planning guidelines, and policies need to be amended to include provisions for street vending.
Need-based Welfare Provisions: Broad welfare provisions of the Act should be used creatively to meet the emerging needs of street vendors, such as addressing the impact of climate change, competition from e-commerce, and reduced incomes.
Adaptation in National Urban Livelihood Mission: The sub-component of street vendors in the National Urban Livelihood Mission should acknowledge changed realities and facilitate innovative measures to address needs.

Mains PYQ

Q To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots?

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

Constitution and the Redistribution of wealth

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FR and DPSP

Mains level: Current debate surrounding economic policies and inequality in India due to shift from Socialistic to Market-Driven Economy

Why in the news?

The debate surrounding the redistribution of wealth has piqued interest during the ongoing election campaigns.

What does the Constitution provide?

Preamble to the Constitution: It outlines the objectives of the Constitution, including securing social, and economic justice, liberty, and equality for all citizens.
Part III and IV: These are principles that the central and State governments should follow to achieve social and economic justice in our country. Unlike the fundamental rights in Part III, the DPSP is not enforceable in court.
Article 39(b) and 39 (c): Article 39(b) emphasizes the distribution of ownership and control of material resources to serve the common good. Article 39(c) aims to prevent the concentration of wealth in a manner detrimental to the common good.

The history of the ‘Right to Property’ in the Indian Constitution:

Original Guarantee: The Constitution initially guaranteed the right to property as a fundamental right under Article 19(1)(f). It provided that individuals have the right to acquire, hold, and dispose of property.
Compensation Requirement: Article 31 of the Constitution mandated that the state must provide compensation in case of the acquisition of private property for public purposes.
Land Reforms and Public Welfare: The government, facing challenges such as land reforms and the need for public infrastructure development, found the original provisions restrictive due to inadequate resources. This led to amendments aimed at providing more flexibility in acquiring land for public welfare.
Constitutional Amendments: Notable amendments such as Articles 31A, 31B, and 31C were introduced to curtail the right to property and facilitate land acquisition for public welfare projects.
Judicial Interpretation of Constitution ammendment: The Supreme Court interpreted the relationship between fundamental rights and Directive Principles of State Policy (DPSP) in various cases. In the Golak Nath case (1967), the Court held that fundamental rights cannot be diluted to implement DPSP. However, in the Kesavananda Bharati case (1973), the Court upheld the validity of Article 31C, subject to judicial review.
Harmonious Balance: In the Minerva Mills case (1980), the Supreme Court emphasized the need for a harmonious balance between fundamental rights and DPSP in the Constitution.
44th Amendment Act: In 1978, the property right was removed as a fundamental right through the 44th Amendment Act, making it a constitutional right under Article 300A. This aimed to reduce excessive litigation and protect public welfare projects.

Impacts due to the shift from a Socialistic to a Market-Driven Economy:

Impact of Economic Policies: The socialistic policies of the early decades after independence focused on land reforms, nationalization of industries, high taxation rates, and regulations on private enterprise. These policies aimed to reduce inequality and redistribute wealth but were criticized for stifling growth and leading to inefficiencies.
Changes in Taxation: Over the years, there have been significant changes in taxation policies, including the abolition of estate duty in 1985 and wealth tax in 2016. Income tax rates were also reduced considerably, reflecting a shift towards a more business-friendly environment.
Growing Inequality: Despite economic growth, there has been a growing concern about inequality. Reports, such as the one by the World Inequality Lab, highlight the widening wealth and income gap, with a significant portion of the wealth concentrated among the top 10% of the population.
Opposition Criticism: The ruling party and its supporters have criticized the Opposition, alleging that their proposed measures, such as the reintroduction of inheritance tax, would burden even the poorer sections of society.
Legal Interpretation: The Supreme Court’s involvement in the debate is highlighted by its decision to constitute a nine-judge Bench to interpret whether Article 39(b) of the Constitution, which pertains to the distribution of material resources for the common good, includes private resources.
Central Question of the debate: The central question in the current debate revolves around the balance between economic policies that promote growth and efficiency versus those aimed at reducing inequality and ensuring social justice.

Way forward:

Inclusive Growth: While promoting innovation and growth, it’s essential to ensure that the benefits are distributed equitably across all sections of society, especially the marginalized. Policies should aim for inclusive growth where the benefits reach those who need them the most.
Debate and Adaptation: Economic policies should be framed after adequate debate and consideration, taking into account current economic models and global best practices. There should be a continuous process of adaptation and refinement to address emerging challenges and opportunities.
Empowerment of Marginalized: Special attention should be given to empowering marginalized communities through targeted interventions such as education, skill development, access to resources, and opportunities for economic participation.

Mains PYQ:

Q Critically discuss the objectives of Bhoodan and Gramdan movements initiated by Acharya Vinoba Bhave and their success. (UPSC IAS/2013)

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

The need for the use of labour statistics

Explained | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Trade union

Mains level: Issues related to labour statistics

Why in the news?

Trade unions can play a pivotal role in producing labour statistics

Issues related to labour statistics

Lack of Rigorous Labour Statistics: Labour statistics are not as robust as economic and industrial data. While institutions like the Annual Survey of Industries (ASI) and the National Sample Survey Office (NSSO) provide valuable information.
Voluntary Reporting of Work Stoppages: Data collection on work stoppages relies on voluntary reporting, which may lead to underreporting or incomplete information. This lack of comprehensive data on strikes and other work stoppages affects the accuracy and reliability of labour statistics.
Limited Use of Evidence in Social Dialogue:Lack of evidence-based arguments in these dialogues undermines their effectiveness, leading to a perception of the ILC as a mere “talking shop.”
Class-Based Opinions without Data Support: Stakeholders often advocate for labour reforms based on “class-based opinions” rather than credible data or empirical evidence.

The role of trade unions in producing labour statistics:

Data Collection on Labour Inspection: Trade unions can gather information and statistics on labour inspection practices, including the number of sanctioned and employed inspectors, inspection frequency, and coverage. This data can highlight deficiencies in inspection systems and advocate for their strengthening.
Monitoring Retrenchment and Closure Applications: Trade unions can track retrenchment and closure applications submitted to labour departments, along with permissions granted or refused. This data can provide insights into the prevalence of denials and the impact of labour regulations on job security.
Analysis of Strikes and Lockouts: Trade unions can utilize data on strikes and lockouts published by agencies like the Labour Bureau to analyze trends and patterns. This analysis can inform discussions on labour laws and industrial relations, challenging the need for harsher clauses on strikes.
Evidence-based arguments: Trade unions can use objective data and empirical studies to contest labour reforms in policy debates. By presenting evidence-based arguments, trade unions can influence decision-making processes and advocate for policies that promote workers’ rights and well-being.

Conclusion:

Implement more robust and standardized data collection methods for labour statistics to ensure accuracy and consistency across different sources. This may involve leveraging technology, such as digital reporting systems, to streamline data collection processes.

Mains PYQ

Q Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.

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Forest Conservation Efforts – NFP, Western Ghats, etc.

Chunk of India’s forests ‘missing’ after 27-year-delay to file reports | Analysis

Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Unclassed forests;

Mains level: Forest coverage in India; Issues related to identification and protection of unclassed forests;

Why in the news?

SC ordered MoEFCC to upload State Expert Committee reports on unclassed forests due to concerns over the Forest (Conservation) Act Amendment 2023 constitutionality, impacting protection and potential diversion of these forests.

What are unclassed forests?

Unclassed forests, also known as deemed forests, are forest areas that may belong to various entities such as government bodies (forests, revenue departments, railways), communities, or private owners. However, these forest areas have not been officially notified as forests.
The State Expert Committees (SECs) were tasked with identifying all such unclassed forests across the country (referring to Forest Working Plans and Land Revenue Records).
Additionally, SECs were required to physically identify any land patches that exhibit characteristics of forests, as per the dictionary meaning of forests, irrespective of their ownership status.

What are the present issues?

The missing forests in SECs

Undermined the previous judgment: MoEFCC informed a Parliamentary Committee that SECs had identified unclassed forests, aligning with the proposed Forest (Conservation) Act Amendment, despite earlier criticism that the law undermined the Godavarman judgment.
- However, an RTI application revealed that MoEFCC claimed not to have the SEC reports, raising questions about its assurance to the Parliamentary Committee.
Lack of verified data: Following a Supreme Court order, MoEFCC uploaded the SEC reports, but they showed a lack of verifiable data on the identification, status, and location of unclassed forests.
States not constituted SECs: Seven states and Union Territories, including Goa, Haryana, and Tamil Nadu, hadn’t constituted SECs, while others hadn’t fully complied with Supreme Court directives.
Non-traceable Forest: Ladakh formed an SEC only after the dissolution of Jammu & Kashmir, and Puducherry’s report was declared “not traceable”, further highlighting inconsistencies in the process.

Disagreement with FSI data

Insufficient timeline: Many states argue that the one-month timeline provided by the Supreme Court was insufficient for comprehensive work due to the voluminous nature of the task.
Relied on Existing data: Instead of conducting ground-truthing, physical cadastral surveys, and demarcation of unclassed forest lands, most states relied on existing data from forest and revenue departments. Some states, like Manipur and Sikkim, simply quoted figures from the Forest Survey of India (FSI).
Question on Data: The reliability of data is questioned, with Haryana’s report lacking clarity on data sources and creation dates. Only nine states provided the extent of unclassed forests, while others focused on different types of forest areas specified in the order.

Lack of clarity in the Reports:

Failed to specify the geographic locations: Most states and UTs failed to specify the geographic locations of forests in their SEC reports, rendering the information provided largely unhelpful for accurate identification and protection.
- But Tripura was an exception, providing Khaitan numbers for forest areas beyond those officially recorded, but the classification of land remained unclear.
Lack of on-ground verification: SEC is lagging that on-ground verification may have led to the widespread destruction of forests that should have been identified and protected nearly three decades ago.
- Instances like Kerala’s SEC excluding ecologically significant areas like Pallivasal unreserve and Chinnakanal unreserve, critical for wildlife corridors and conservation, showcase the lack of diligence in identifying and protecting vital forest areas.

Suggested Measures:

Extended Timeline: Provide states with a more realistic timeline to conduct comprehensive surveys and data verification, considering the voluminous nature of the task and the need for accuracy.
Ground Truthing and Surveys: Mandate states to conduct ground-truthing, physical cadastral surveys, and demarcation of unclassed forest lands to ensure accurate identification and mapping of forest areas.
Data Verification: Implement mechanisms for verifying and cross-referencing data obtained from various sources, such as forest and revenue departments and the Forest Survey of India, to ensure reliability and consistency.

Main PYQ:

Q Examine the status of forest resources of India and its resultant impact on climate change.(UPSC IAS/2020)

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

The poultry industry needs urgent reforms

Explained | Economics | Mains Paper 3: Economics Of Animal-Rearing

Note4Students

From UPSC perspective, the following things are important :

Prelims level: H5N1 Virus

Mains level: Scale of spreading H5N1 virus

Why in the news?

The current outbreak of H5N1 was a disaster waiting to happen, as experts have been sounding alarm bells on the unsafe conditions at industrial livestock production for more than 10 years now.

Scale of spreading H5N1 virus:

Global Spread of H5N1 in humans: The H5N1 virus has spread globally, affecting various species including humans, polar bears in the Arctic, and seals and seagulls in Antarctica.
In India Spread of H5N1 in humans: The first H5N1 patient was reported in Maharashtra in 2006. An outbreak in December 2020 and early 2021 spread across 15 States
Human Fatality Rate: As per WHO, the fatality rate for H5N1 among humans is estimated at 52%, with 463 deaths recorded since 2003 out of 888 diagnosed cases.
Transmission from Birds and Contaminated Environments: Almost all human infections with H5N1 are linked to close contact with infected birds or contaminated environments, emphasizing the importance of biosecurity measures.
Spread in other species: This pathogen has crossed many species barriers, causing mortality among the polar bears in the Arctic and seals and seagulls in Antarctica.

Causes for the spread of H5N1 (avian influenza or bird flu) infection:

Contact with infected birds: Humans can contract H5N1 if they come into direct contact with the body fluids, such as saliva, respiratory droplets, or feces, of infected birds.
Poultry Trade and Movement: The transportation and trade of infected poultry, poultry products, and crowded live poultry markets provide an environment for the virus to spread between birds and potentially to humans.
Antibiotic Resistance: The 269th Law Commission of India Report in 2017 highlighted evidence from the Tata Memorial Centre regarding the use of non-therapeutic antibiotics in poultry farming, leading to antibiotic resistance due to unhygienic living conditions.
Environmental Factors: Factors like proximity to bodies of water, reduced rainfall, and presence near major highways have been associated with increased risk of H5N1 outbreaks. These environmental conditions may facilitate the spread of the virus.

Regulation: The Central Pollution Control Board (CPCB) has classified poultry units with more than 5,000 birds as a polluting industry that requires compliance and regulatory consent to establish and operate.

Way Forward:

Draft Rules for Welfare: The Law Commission 269th recommended a set of draft rules for the welfare of chickens in the meat and egg industries, aligning with existing laws and international best practices for animal care, waste management, and antibiotic use.
Weaknesses in Draft Rules: The Draft Rules for the egg industry released by the Ministry of Agriculture and Farmers’ Welfare in 2019 were criticized for being weak and tokenistic, failing to meet the recommendations of the Law Commission.
Need for Oversight and Enforcement: Given the reclassification of the poultry industry as a highly polluting ‘orange category’ industry by the Central Pollution Control Board (CPCB), strict oversight for compliance and enforcement of environmental regulations is essential.

Mains PYQ:

Q What is the basic principle behind vaccine development? How do vaccines work? What approaches were adopted by the Indian vaccine manufacturers to produce COVID-19 vaccines? (UPSC IAS/2022)

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Tax Reforms

The rising share of Personal Income Tax and Indirect Tax is a concern

Explained | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Trend related to Taxes in India

Mains level: Concerns due to the rising share of personal income tax and indirect tax

Why in the news?

Recent data show that Personal Income Tax Collections have increased, while collections from Corporate Taxes have reduced.

The present context of the rising share of Personal Income Tax and Indirect Tax:

Shift in Tax Composition: The data illustrates a significant shift in the composition of tax revenue, with personal income tax forming a larger share compared to corporate tax. This trend is accentuated by the sharp decline in corporate tax following the 2019 tax cuts.
Progressive vs. Regressive Taxation: Direct taxes, such as personal income tax, are considered progressive as they are based on income levels, whereas indirect taxes, like GST, are regressive, impacting all consumers uniformly regardless of their income.
- The increasing share of indirect taxes implies a heavier burden on lower-income individuals.
Trend in Tax Composition: Chart 2 demonstrates a historical trend where indirect taxes had been decreasing since the 1980s, whereas direct taxes were on the rise. However, recent years have witnessed a reversal of this trend, with indirect taxes increasing and direct taxes declining.
International Comparison: Comparisons with BRICS economies indicate that India’s effective personal income tax rate is among the highest. This implies that Indian taxpayers may face relatively higher tax rates compared to individuals in other emerging economies.

Concerns due to rising share of Personal Income Tax and Indirect Tax:

Impact on Middle and Lower Income Groups: The rising share of personal income tax and indirect taxes places a greater burden on poorer citizens and the middle class. This is particularly concerning as the majority of personal income tax filers fall within the ₹1 lakh-₹5 lakh annual income bracket, indicating that middle-income earners are disproportionately affected.
Comparison with BRICS Economies: Data comparisons with BRICS economies reveal that India’s effective personal income tax rate is among the highest. This suggests that individuals in India may be facing relatively higher tax rates compared to their counterparts in other emerging economies.
Concern for Equity and Economic Stability: The data underscores a growing concern regarding the equitable distribution of the tax burden. The heavier reliance on personal income tax and indirect taxes may exacerbate income inequality and strain the finances of middle and lower-income households.

Way Forward:

Progressive Tax Reforms: Implementing progressive tax reforms can help alleviate the burden on middle and lower-income groups. This could involve revising tax brackets and rates to ensure that higher-income individuals contribute proportionally more to tax revenue.
Enhanced Direct Tax Compliance: Improving direct tax compliance measures, such as increasing tax enforcement efforts and reducing tax evasion loopholes, can help enhance revenue collection from high-income individuals and corporations.

Mains PYQ

Q What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences the budgetary policies of the government. (UPSC IAS/2013)

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

Court’s nudge on Hospital charges, a reform opportunity

Explained | Governance | Mains Paper 2: Health & Education

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Health; Government Initiatives;

Mains level: Challenges in benchmark for pricing

Why in the news?

The SC while hearing a PIL in February’24, directed the Central Government to find ways to regulate the rates of Hospital Procedures in the Private sector.

The SC also warned against applying Central Government Health Scheme (CGHS) rates for treatment services at private healthcare facilities until standardized rates are set.

About Central Government Health Scheme (CGHS) Rates:

CGHS is a health care scheme provided by the Indian Government for its central government employees and pensioners.

Commencement Year: 1954
Objective: To provide comprehensive health coverage to Central Government Employees (Allopathy/Homoeopathy)
Present change: The rates of the Central Government Health Scheme (CGHS) for general surgery have been revised since February 2024.

Benchmark for Pricing:

Standard Treatment Guidelines (STGs): These can establish relevant clinical needs, the nature and extent of care, and the costs of total inputs required.
- They address confounders and ensure clinical autonomy while enabling the valuation of healthcare resources consumed for precise cost determination.
Pooled payments by government: Formulating and adopting STGs require providers’ revenues to be tied to fewer payers.
- This necessitates reimbursements from pooled payments with low Out-Of-Pocket (OOP) payment levels, supported by the government.
Coordination between payers and providers: Governments can support the agreement on pricing that provides a reasonable and sustainable surplus over input costs.
- However, the ability of providers to access markets with OOP payments could hinder this effort.

Challenges faced during benchmarking of the price:

Private sector issues

- - Private sector dominance: In India, over half of the total health expenditure is OOP, with the private sector predominantly composed of small-scale providers. Standardizing rates faces implementation uncertainties, and enforcement mechanisms for adherence remain unclear.
  - Resistance from providers: Concerns arise about the feasibility of regulatory measures if providers do not adhere to prescribed procedure rates, as seen in various health schemes.

Weak implementation

- Limitations of regulations: While price caps can influence behavior in the short term, weak enforcement mechanisms lead to temporary effects as the overall environment remains unchanged.
- Enforcement challenges: Despite suggested measures, enforcement remains weak, with only a fraction of states and union territories implementing the Clinical Establishment Act.
Data-related issues: Although the insurance industry initiated STGs for hospitals in 2010, progress was hindered by a lack of representative and accurate costing data due to limited participation from private hospitals.

Government Initiatives:

Developing STGs: The Pradhan Mantri Jan Arogya Yojana and the Department of Health Research have made significant strides in developing STGs for common conditions and adopting a comprehensive costing framework.
Efforts are also ongoing to create an Indian version of Diagnostics-Related Groups (DRGs)

Way Forward:

Addressing anticipated challenges: Anticipated challenges in implementing rate standardization policies need to be identified and addressed proactively to ensure successful outcomes.
Evidence-based policy: Conduct rigorous research and evaluation to generate evidence on the impact of regulatory measures on affordability, care quality, and provider behavior, informing future policy decisions.
Ensuring broader stakeholder participation: It is essential to involve a wide range of stakeholders in the development and implementation of rate standardization policies to increase their effectiveness and acceptance.

Mains PYQ

Q Public health system has limitation in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC IAS/2015)

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RBI Notifications

Towards a Green Growth: On the RBI and a Green Taxonomy

DOMR Explained | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Monetary Policy

Mains level: The impact of climate shock and extreme weather events

Why in the news?

Extreme weather conditions may pose a risk to inflation, along with prolonged geopolitical tensions that could keep crude oil prices volatile, the Reserve Bank’s April Bulletin said on April 23.

RBI’s Monetary Policy Report on the impact of climate shock and extreme weather events on food inflation:

Effects of Food Inflation: The report highlights the significance of extreme weather events and climate shocks in affecting not only food inflation but also the broader impact on the natural Rate of Interest and Financial Stability.
Broader Economic Impact: Climate shocks and extreme weather events are mentioned to have a broader impact on the economy’s financial stability, indicating that disruptions in food production and supply chains due to these events can lead to inflationary pressures beyond just the food sector.
Use of Economic Modeling: The report mentions the utilization of a New-Keynesian model incorporating a physical climate risk damage function to estimate the macroeconomic impact of climate change. This likely includes projections on how climate shocks affect food production and subsequently food inflation.
Warning on Long-Term Output Reduction: The report warns that without climate mitigation policies, the long-term economic output could be lower by around 9% by 2050. This suggests that climate shocks and extreme weather events could have lasting effects on food production and inflation.
Potential for Inflation Hysteresis: There’s a warning about the potential for inflation hysteresis to become entrenched, which could lead to a de-anchoring of inflation expectations. This implies that persistent disruptions caused by climate shocks could lead to sustained increases in food inflation.

Way Forward:

Need Investment in Climate Resilience: Governments and businesses can invest in climate-resilient agriculture practices and infrastructure to mitigate the adverse effects of extreme weather events on food production.
Need Diversification of Food Sources: Diversifying food sources can help reduce reliance on regions prone to climate-related disruptions. This could involve promoting local food production, supporting small-scale farmers, and investing in alternative food production methods such as vertical farming or hydroponics.

Mains PYQ

Q What policy instruments were deployed to contain the great economic depression?

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Global Geological And Climatic Events

Anticyclones, hanging even now over India, link warming to heat | Explained

Explained | Enviro & Biodiversity | Mains Paper 1: Geographical Features & Their Location

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Anticyclone and El Nina

Mains level: Link between anticyclone and heat

Why in the news?

The record warming of 2023 has so far not been fully explained since it was much warmer than expected just from the superposition of El Nino on global warming.

About Anticyclone:

An anticyclone is a weather phenomenon defined as a large-scale circulation of winds around a central region of high atmospheric pressure, clockwise in the Northern Hemisphere and counterclockwise in the Southern Hemisphere.

The link between ElNino and Anticyclone:

El Nino events can lead to the formation of anticyclone events. During El Niño, the weakening or reversal of the Walker circulation and strengthening of the Hadley circulation caused warm ocean water to develop in the central and east-central equatorial Pacific.

The link between anticyclone and heat

Stability and Weather Patterns: Anticyclones are areas of high pressure in the atmosphere characterized by descending air, which stop the cloud formation and precipitation. This stable air mass tends to promote clear skies and can lead to prolonged periods of hot and dry weather.
Amplification by Global Warming: Studies suggest that global warming can intensify anticyclones, making them stronger and more persistent. Warmer temperatures due to climate change can enhance the evaporation of moisture from land and water surfaces, further reinforcing the stability of anticyclonic conditions.
Feedback Loop: Anticyclones can create a feedback loop with global warming. As anticyclones persist, they can exacerbate heatwaves by trapping heat near the surface, preventing it from escaping into the upper atmosphere. This trapped heat can then further strengthen the anticyclone, leading to a self-reinforcing cycle of heat and stability.

What are the stages of early warnings?

The stages of early warnings on the ‘ready-set-go’ system for disaster management

Ready: This stage involves providing a seasonal outlook based on background states and external factors like global warming and El Niño. The aim is to maximize the accuracy of longer-lead forecasts, enabling organizations like the National Disaster Management Agency (NDMA) and local governments to prepare their disaster response systems accordingly.
Set: In this stage, subseasonal predictions for weeks two to four are utilized. Resource allocations are made, and potential hotspots are identified to ensure that disaster preparedness is in place. This step involves moving resources, including personnel, to areas that are identified as at risk based on the extended range forecasts.
Go: The final stage, based on short- and medium-range forecasts (days 1-10), involves the activation of disaster response efforts. This includes implementing rescue operations, setting up hydration centers, heat shelters, and other necessary measures to manage the disaster effectively.

Conclusion: All evidence suggests India’s prediction system and early warning systems continue to improve and the NDMA has worked these details well into its ‘ready-set-go’ system.The remaining challenges are to build resilience for the future by better predicting the trajectory of the weather at every location over India.

Mains PYQ

Q Drought has been recognized as a disaster in view of its spatial expanse, temporal duration, slow onset and lasting effects on vulnerable sections. With a focus on the September 2010 guidelines from the National Disaster Management Authority (NDMA), discuss the mechanisms for preparedness to deal with likely El Nino and La Nina fallouts in India.

https://www.thehindu.com/sci-tech/science/anticyclones-hanging-even-now-over-india-link-warming-to-heat/article68117359.ece

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

Inequality can no longer be ignored

Explained | Indian Society | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Trends related to tax to GDP ratio;

Mains level: Growth and issues with inequality in India

Why in the news?

The Congress’s party’s election manifesto, the Nyay Patra, has triggered a debate on inequality, concentration of wealth and the measures to address these.

The reason behind the inequality in India:

- Taxation Disparities: India’s tax-GDP ratio is comparatively low, standing at 17% as opposed to 25% in Brazil, indicating room for improvement in revenue generation. The taxation structure in India leans towards indirect taxes, which contribute significantly (about two-thirds) to overall tax revenue collection.
- Regressive Taxation Structure: India’s tax system is described as regressive, indicating that it disproportionately impacts low-income individuals compared to high-income individuals. Indirect taxes, which are a significant component of overall tax revenue, tend to burden lower-income groups more than higher-income groups.
- Lack in Tax Progressivity: There are concerns about the lack of progressivity in India’s direct tax regime, where higher-profit companies enjoy relatively lower effective tax rates compared to lower-profit companies.

Welfare spending is low

- Low Spending on Welfare and Social Sector: India’s expenditure on welfare and the social sector is significantly lower compared to other countries. Public spending on health remains low, approximately 1.3% of GDP, falling short of the National Health Policy (NHP) target of 2.5% of GDP by 2025.
- Eventual decline Budget Allocations: Major budgetary allocations for programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), education, and budgets for children have either declined as a proportion of total expenditure or GDP.

Way forward

Revenue Mobilization and Spending Priorities: There’s a pressing need to improve revenue mobilization progressively, ensuring that the burden of taxation is distributed fairly and equitably.
- Simultaneously, increasing spending on areas that directly affect the lives of the poor is crucial. This includes healthcare, education, social protection programs, and employment generation schemes like MGNREGA.
Achieving Policy Targets: Meeting targets set by policies like the NHP requires a concerted effort to ramp up healthcare spending in line with national goals.

Mains PYQ

Q) Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive. (UPSC IAS/2019)

Q) Critically discuss the objectives of Bhoodan and Gramdan movements initiated by Acharya Vinoba Bhave and their success. (UPSC IAS/2013)

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Digital India Initiatives

[PREMIUM] An Overview of the Digitalization in Indian Economy

Explained | 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: Schemes related to digitisation in India

Mains level: Status of Digitalization in the Indian Economy

Why in the news?

As per RBI findings, India’s core digital economy saw a rise from constituting 8.5% of GVA in 2019 to 12.5% in 2023, marking a growth rate of 15.6% over the span of 2019-2023.

What is digitisation?

Digitization refers to the process of converting information, data, or physical objects into digital format. Digitization enables information to be stored, accessed, and manipulated electronically, often leading to increased efficiency, accessibility, and flexibility compared to traditional analog methods.

Origin in World

The origin of digitalization can be traced back to the late 19th century when Herman Hollerith developed a punch card system for tabulating data.
Alan Turing’s theoretical work on computation in the early 20th century laid the foundation for the development of the first electronic computers in the 1940s, which were pivotal in digitizing various forms of information.

Origin in India

Late 20th century: The origins of digitalization in India can be traced back to the late 20th century, with the advent of personal computers and the internet.
Early 2000s:The government’s concerted efforts to drive digital transformation in the country began in the early 2000s with the launch of the National e-Governance Plan (NeGP) in 2006
2015: The NeGP aimed to make government services available to citizens electronically by improving online infrastructure and connectivity. This laid the foundation for the more comprehensive “Digital India” initiative, which was launched by Prime Minister Narendra Modi in 2015

Status of Digitalization in the Indian Economy

Enhancement of E-Governance: The Digital India initiative has brought about substantial enhancements in e-governance services. Programs such as e-visas and the Digital Locker system have effectively modernized government services, leading to a reduction in paperwork and greater accessibility for citizens.
E-Commerce market: India’s e-commerce market is expected to reach $200 billion by 2026. Major players like Flipkart and Amazon have expanded their reach, with the COVID-19 pandemic accelerating online shopping adoption.
Digital transaction: The BHIM (Bharat Interface for Money) app, utilizing the Unified Payments Interface (UPI), has garnered immense popularity, enabling secure peer-to-peer transactions. By August 2023, UPI had processed more than 10 billion monthly transactions, amounting to INR 18 trillion ($204.77 billion).
Startup Ecosystem in India: India’s rapidly growing startup ecosystem currently encompasses 110 unicorns valued at $347 billion, featuring prominent companies such as Paytm, Ola, and Zomato. These unicorns exemplify India’s prowess as a technology-driven entrepreneurial center.
Digital Financial Inclusion: Digital financial services, propelled by programs such as Jan Dhan Yojana, have advanced financial inclusion by facilitating the opening of millions of bank accounts for those previously excluded from or underrepresented in the banking system.
Surge in Broadband and Internet Usage: India has experienced a notable surge in broadband adoption, boasting 825 million mobile broadband subscribers as of July 2023. This uptick has resulted in heightened data consumption and escalated online engagement, especially among Generation Z.

Key challenges related to digitalisation in India:

Lack of skills: Rapid technological change increase the demand of skilled workforce. Only 42% of India’s workforce possesses digital skills, highlighting the need for digital literacy and upskilling.
Regulatory challenges: For businesses, especially startups, grappling with intricate digital regulations, e-commerce taxation, and intellectual property matters continues to present significant challenges.
Privacy issues:The surge in digital transactions and data exchange has sparked notable concerns regarding privacy and data security. These concerns are being tackled by the Personal Data Protection Bill, which introduces regulatory intricacies.
Cybersecurity: As digitization increases, the risk of cyber threats and attacks grows. India faced 91 lakh cybersecurity incidents in 2022, ranking third globally in the average cost of data breaches.
Digital Divide: Despite advancements, there remains a digital gap, with rural areas experiencing restricted internet and technology accessibility, resulting in approximately 50% of the population being offline.

Measures to address these challenges:

Digital Skills Development: Implement comprehensive digital literacy programs to enhance the skills of the workforce.
Regulatory Simplification:Streamline digital regulations, especially for startups, to reduce complexities and facilitate smoother operations.Provide guidance and support to businesses on e-commerce taxation and intellectual property matters.
Privacy and Data Security: Enforce the Personal Data Protection Bill to address privacy concerns and ensure data security.Enhance awareness campaigns to educate the public about data privacy and protection measures.
Cybersecurity Measures: Strengthen cybersecurity infrastructure to combat the increasing cyber threats and attacks.Invest in advanced cybersecurity technologies and training programs to build a resilient defense system.
Closing the Digital Divide:Expand digital infrastructure in rural areas to improve internet and technology accessibility.

Steps taken by government:

Cybersecurity Framework: Enhance cybersecurity infrastructure and awareness, emphasizing collaboration between government agencies and the private sector under National Cyber Security Policy of 2021.
Data Protection Laws: Enacted data protection laws and regulations, like the Digital Personal Data Protection Act, of 2023, to ensure privacy and responsible data handling.
Expansion of Broadband : Accelerate efforts to expand broadband connectivity in rural and remote areas, leveraging public-private partnerships like the BharatNet project.
Digital initiative: Comprehensive digital literacy initiatives targeting both urban and rural communities, exemplified by programs like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA).

Conclusion:

Need to Implement widespread digital literacy programs to equip individuals with the necessary skills to navigate the digital landscape and emphasize upskilling and reskilling initiatives to meet the demands of rapid technological advancements.Encourage collaboration between the government and the private sector to drive digitization initiatives.

Mains PYQ

Q Implementation of Information and Communication Technology (ICT) based projects/programmes usually suffers in terms of certain vital factors. Identify these factors and suggest measures for their effective implementation. (UPSC IAS/2019)

Q Has digital illiteracy, particularly in rural areas, coupled with lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification.(UPSC IAS/2021)

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Corruption Challenges – Lokpal, POCA, etc

Why Centre filed an application to modify 2G spectrum scam judgement

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Spectrum

Mains level: What is the 2G scam case?

Why in the news?

Attorney General R Venkataramani, on April 22, mentioned an application filed by the Centre to modify the Supreme Court’s 2012 judgement in the 2G spectrum scam case.

What is the 2G scam case?

In 2008, under then Telecom Minister A Raja, the Department of Telecommunications (DoT) issued 2G spectrum licenses to specific telecom operators on a first-cum-first-serve basis.
In 2009 ,the Central Vigilance Commission directed the CBI to investigate claims that there were illegalities in the allocation of licenses, following which the CBI filed a first information report against unknown officers of the DoT, private persons and companies.
In the meantime, the Centre for Public Interest Litigation and Subramanian Swamy filed petitions at the Supreme Court alleging a Rs 70,000 crore scam in the grant of telecom licenses in 2008.
In 2010, the Comptroller and Auditor General of India (CAG) filed a report claiming that the allocation had caused a loss of Rs 1.76 lakh crores to the public exchequer. Raja resigned shortly after.
In 2011 the CBI filed its first chargesheet, in which Raja was an accused.
In February 2012, the Supreme Court cancelled the 122 licenses granted during Raja’s tenure. The court found that Raja had allocated licenses in 2008 based on 2001 prices in order to benefit specific private telecom operators.

Why is the Centre seeking a modification of the apex court’s decision?

Need for Non-commercial Use: The Centre highlights that spectrum allocation is essential not only for commercial telecommunication services but also for public interest functions such as security, safety, and disaster preparedness. These functions may not always align with the profit-oriented nature of auction processes.
Situational Preferences: The Centre argues that there are situations where auctions are not technically or economically preferred or optimal. This could include scenarios where there is a one-time or sporadic use of spectrum, which may not justify the complexities and costs associated with conducting auctions.
Court’s Clarification on Auctions: The Centre refers to the Supreme Court’s clarification in September 2012, stating that the auction method prescribed in 2012 was not a constitutional principle and not an absolute or blanket statement applicable across all natural resources. The Court expressed respect for the executive’s discretion in such matters.
Seeking Clarity for Administrative Process: In light of the Court’s clarification, the Centre seeks clarity on whether it can allocate 2G spectrum in the future through an administrative process if determined through due process and in accordance with the law. This indicates a desire for flexibility in spectrum allocation methods based on situational considerations and public interest needs.

Conclusion:

Need to implement transparent processes for the allocation of public resources such as spectrum. Clearly outline the criteria, procedures, and timelines for allocation, and ensure that these are accessible to all stakeholders.Establish independent oversight bodies or regulatory agencies to monitor and audit the allocation process.

Mains PYQ:

Q What is mean by public interest? What are the principles and procedures to be followed by the civil servants in public interest? (UPSC IAS/2018)

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RBI Notifications

RBI’s latest recommendations to regulate payment aggregators in offline spaces | Explained

Explained | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Payment aggregators

Mains level: What exactly are the norms about?

Why in the news?

The Reserve Bank of India (RBI) has floated two consultation papers seeking enhanced regulation of payment aggregators carrying out face-to-face transactions. It also seeks to strengthen the ecosystem’s safety.

What is Payment Aggregators?

A payment aggregator is a payment solution or a platform provider that aggregates various payment modes such cards, UPI, net-banking, wallets and alternate credit products by partnering with various processing entities such as acquiring banks, direct banks (in case of net banking) and issuers of wallets and alt credit products on to a single platform.

What exactly are the norms about?

Extension to Offline Transactions: The existing guidelines for payment aggregators cover their activities in e-commerce and online platforms. The latest draft proposes extending these regulations to offline spaces, including proximity or face-to-face transactions.
Convergence on Standards: The proposed norms aim to achieve convergence on standards of data collection and storage across online and offline transactions handled by payment aggregators.
Elaborate Guidelines: The proposed norms are detailed and comprehensive, reflecting lessons learned from incidents such as the Paytm Payments Bank crisis.
Strengthening Ecosystem: RBI’s objective seems to be strengthening the payment aggregator ecosystem against opacity and ensuring compliance with regulatory standards.
Penalties for Non-Compliance: The Financial Intelligence Unit (FIU-IND) imposed penalties on Paytm Payments Bank for engaging in illegal activities and failing to adhere to regulatory requirements, indicating strict consequences for non-compliance with the proposed norms.

Is registration with the RBI being made compulsory?

The primary focus of this guidlines is on non-bank PAs and within them, the offline extensions.

PA based on Bank: Banks providing physical PA services as part of their normal banking relationship would not require any separate authorisation from the RBI. They are only expected to comply with the revised instructions within three months after they are issued.
PA without Banking: Non-banking entities providing PA services at the point of sale (PoS), that is, offline, would have to inform RBI within 60 days (after the circular is issued), about their intent to seek authorisation.

Does it talk about provisions for sustainability?

Minimum net worth aims to ensure the sustainability of non-banking entities: While the proposed norms primarily focus on regulatory compliance and financial stability, the requirement for a minimum net worth aims to ensure the sustainability of non-banking entities providing proximity/face-to-face transaction services. This is because entities with a stronger financial base are better positioned to weather economic challenges and uncertainties, thus promoting sustainability in the long run.
Risk-Based Payments: Payment aggregators are required to assign risk-based payments to merchants, focusing on sustainability. This involves assessing the risk associated with each merchant and adjusting payment terms accordingly.

What about KYC requirements?

Extended Scope of KYC: The proposed regulations aim to extend the scope of Know Your Customer (KYC) requirements for merchants onboarded by payment aggregators. While KYC is already mandatory, the regulations seek to make the provisions more nuanced.
Document Verification for Medium Merchants: Medium merchants, with a higher annual turnover threshold, must undergo additional document verification. Payment aggregators are expected to verify one official document each of the proprietor, beneficial owner or attorney holder, and the stated business.
Ongoing Compliance Monitoring: Payment aggregators must ensure that transactions undertaken by their merchants are in line with their business profiles. This involves ongoing monitoring to ensure compliance with KYC requirements and business activities.

Conclusion:

The proposed norms aim to achieve convergence on standards of data collection and storage across both online and offline transactions handled by payment aggregators. This helps in streamlining regulatory requirements and ensuring consistency in data management practices.

Mains PYQ

Q How can the Digital India program help farmers to improve farm productivity and income? What step has the government taken in this regard? (UPSC IAS/2015)

With Inputs from:

https://www.thehindu.com/business/rbi-clampdown-on-lenders-could-moderate-credit-growth-in-2024-25/article67994838.ece

https://www.thehindu.com/business/Industry/rbi-to-introduce-offline-erupee-transactions-soon-shaktikanta-das/article67824286.ece

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Judicial Appointments Conundrum Post-NJAC Verdict

SC declines plea against Collegium system to protect public’s best interest

Explained | Polity | Mains Paper 2: Executive & Judiciary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Registrar of supreme court

Mains level: Collegium system

Why in the news?

The petition, filed by advocate Mathews Nedumpara, seeks a revival of the NJAC. SC Registrar says the issue is already settled, and a repeat litigation is a “needless waste of judicial time and energy”

What is the Registrar of supreme court?

The registrar is a chief executive officer of a judicial forum. They are in charge of the entire registry of the department.

What is NJAC (National Judicial Appointments Commission)?

In August 2014, Parliament passed the Constitution (99th Amendment) Act, 2014 along with the National Judicial Appointments Commission (NJAC) Act, 2014, providing for the creation of an independent commission to appoint judges to the Supreme Court and high courts.
In 2015, Supreme Court struck down the National Judicial Appointments Commission (NJAC) and the 99th Amendment

Actually, Collegium system is used for the appointment of SC Judges

First Judges Case (1981):

Also known as S.P. Gupta case (December 30, 1981), the Supreme Court held that consultation does not mean concurrence and it only implies exchange of views
It declared that the “primacy” of the Chief Justice of India (CJI)s recommendation on judicial appointments and transfers can be refused for “cogent reasons.”
The ruling gave the Executive primacy over the Judiciary in judicial appointments.

Second Judges Case (1993):

SC reversed its earlier ruling and changed the meaning of the word consultation to concurrence.
Hence, it ruled that the advice tendered by the Chief Justice of India is binding on the President in the matters of appointment of the judges of the Supreme Court.
But, the Chief Justice would tender his advice on the matter after consulting two of his senior most colleagues (this was considered as Collegium)
The collegium can veto the government if the names are sent back by the latter for reconsideration.
The basic tenet behind the collegium system is that the judiciary should have primacy over the government in matters of appointments and transfers in order to remain independent.
The opinions of each member of the Collegium and other judges consulted should be made in writing and form part of the file on the candidate sent to the government.
Thus, the executive element in the appointment process was reduced to a minimum.
If the CJI had consulted non-judges, he should make a memorandum containing the substance of consultation, which would also be part of the file. After the receipt of the Collegium recommendation, the Law Minister would forward it to the Prime Minister, who would advise the President in the matter of appointment.

Third Judges Case (1998):

SC on President’s reference expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues while HC collegium is led by its Chief Justice and four other senior most judges of that court.
Names recommended for appointment by a HC collegium reaches the government only after approval by the CJI and the SC collegium.

Conclusion:

The primary argument against the NJAC was that it could potentially undermine judicial independence by giving the executive a significant role in judicial appointments. Any alternative system, including a revised version of the NJAC, would need to ensure that judicial independence is safeguarded.

Mains PYQ

Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India.

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Air Pollution

On the National Clean Air Programme | Explained

Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Clean Air Programme (NCAP)

Mains level: Key features of NCAP

Why in the news?

When the Indian government launched the National Clean Air Programme (NCAP) in 2019, it’s target was to cut the concentration of atmospheric Particulate Matter (PM) by 20-30% by 2024, from 2017 levels. This was later revised to 40% by 2026.

What is the NCAP?

The National Clean Air Programme (NCAP) was launched in India in January 2019 by the Ministry of Environment, Forest and Climate Change (MoEFCC)
The NCAP aims to achieve reductions in PM10 levels through various measures.

What is PM10?

PM 10, also known as particulate matter with an aerodynamic diameter of less than 10 micrometers.
PM 10 particles can irritate the eyes, nose, and throat, and prolonged exposure to high levels of PM 10 can lead to serious health problems, including respiratory issues, cardiovascular disease, and even premature death.

Key features of NCAP (Note: asked in UPSC 2020 mains)

Target: Achieving 20% to 30% reduction target in Particulate Matter (PM10 and PM2.5) concentrations by 2024, where 2017 is kept as the base year for the comparison of concentration. But it has been revised to 40% by 2026.
Cities based on air quality:Identification of 122 non-attainment cities across the country based on the 2014-2018 Air Quality data.
City specific plans: Preparation of city-specific action plans, including measures to strengthen the monitoring network, reduce vehicular/industrial emissions, and increase public awareness.
Coordination between centre, state and local: Facilitating collaborative, multi-scale, and cross-sectoral coordination between the relevant central ministries, state governments, and local bodies.
Right mix with exixting policies: Establishing a right mix with the existing policies and programs, including the National Action Plan on Climate Change (NAPCC) and other government initiatives related to climate change.
Changes as per additional scientific information: Constant change, activity, and progress to get evolved based on the additional scientific and technical information as they emerge.
Monitoring station: Increasing the number of monitoring stations in the country, including rural monitoring stations, technology support, and data analysis.
Awareness and capicity building: Emphasis on awareness and capacity building initiatives, including public awareness campaigns, training programs, and research and development activities.

Challenges related to NCAP

Lack of fund Utilization: On average, only 60% of the allocated funds have been utilized so far, with 27% of cities spending less than 30% of their designated budgets. Notably, Visakhapatnam and Bengaluru have spent 0% and 1% of their NCAP funds, respectively.
Implementation Delays: Delays in implementing CAAPs are attributed to various factors, including bureaucratic hurdles such as delays in approvals from competent authorities and the absence of standard operating procedures.
Technical Challenges: Technical challenges, such as defining technical specifications for tendering processes and procuring necessary equipment like mechanical sweepers and electric buses, contribute to implementation delays.

How scientific tool can help?

Emissions Inventory (EI): EIs provide crucial insights into local pollution sources and their contributions, aiding in forecasting future emissions and shaping targeted pollution control strategies.
Source Apportionment (SA) Studies: SA studies offer detailed analyses of contributions from various pollution sources, including distant ones.
Role of Air Quality (AQ) Modelling: AQ modelling helps in understanding pollution dispersion, including from distant sources.
Role of EI, SA and AQ: Combining EI, SA studies, and AQ modelling allows for a comprehensive understanding of pollution sources, their contributions, and dispersion patterns.

Conclusion:

Implement stricter monitoring mechanisms to ensure timely and efficient fund utilization. Regular audits and reviews can help identify underutilization and take corrective actions promptly.

Mains PYQ

Q What are the key features of the National Clean Air Programme (NCAP) initiated by the government of India? (UPSC IAS/2020)

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The Crisis In The Middle East

Tensions grow in West Asia, a heavily militarised region

Explained IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Map of West Asia

Mains level: Reason behind the west Asia is a heavily militarised region

Why in the news?

According to the Stockholm International Peace Research Institute’s ‘Trends in International Arms Transfers 2023’, four of the top 10 largest importers of arms last year were from West Asia, with the U.S. being the main supplier

SIPRI Report: Trends in International Arms Transfers, 2023

India’s Arms Imports: Increased by 4.7% compared to 2014-18.
European Arms Imports: Saw a staggering 94% increase between 2014-18 and 2019-23, likely influenced by the Russia-Ukraine conflict.
Russia-India Arms Trade: Russia remained India’s largest arms supplier, accounting for 36% of total imports.
Top Global Importers: India, Saudi Arabia, and Qatar emerged as the top three importers globally.
Ukraine’s Arms Imports: Became the fourth largest arms importer during the specified period.
China-Pakistan Arms Trade: Pakistan, the fifth largest arms importer, obtained 82% of its arms from China.
France’s Arms Exports: Emerged as the world’s second-largest arms supplier, after the United States.
French Arms Exports to India: India was highlighted as the largest single recipient of French arms exports.

West Asia has largest expenditure in Defence as per GDP %

Reason behind the west Asia is heavily militarised region:

Regional Conflicts and Tensions: The region is characterized by ongoing conflicts and tensions, such as those in Yemen and Syria, leading countries to seek advanced weaponry to address security challenges
Oil Boom: The oil boom in West Asia has led to increased military spending as countries seek to protect their oil resources and maintain regional stability
Internal Factors: The presence of Western arms and personnel in some Persian Gulf countries has contributed to internal resurgences, leading states to invest in military capabilities for self-defense
Diversification of Arms Suppliers: West Asian states have adopted the principle of diversifying sources of arms supply, leading to a broader range of arms imports from various suppliers globally
Client-Supplier Relationship: The relationship between client states and arms suppliers is often favorable to the recipient, with the recipient receiving the arms they wish and the supplier bowing to their demands
Regional Disputes and Border Skirmishes: Border disputes, threats, and wars have made it imperative for West Asian states to resort to modern and efficient national defense systems like conflict between Iran and Israel

Conclusion:

Encourage diplomatic efforts to resolve regional conflicts and tensions through dialogue and negotiation, aiming to reduce the need for excessive military spending. Advocate for the establishment of regional arms control agreements to limit the proliferation of weapons and promote stability in the West Asia region.

Mains PYQ

Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics?

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Swachh Bharat Mission

The reality of the Swachh Bharat Mission

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Agricultural subsidies; Policies and Programs by government;

Mains level: Key challenges related to Swachh Bharat Mission

Why in the news?

India was ranked right at the bottom of 180 countries in the Environment Performance Index (EPI) in 2022. The EPI ranks countries on climate change performance, environmental health, and ecosystem vitality.

Swachh Bharat Abhiyan

It is also known as the Clean India Mission, is a significant campaign initiated by the Government of India on October 2, 2014,
It is primarily aimed at eliminating open defecation, improving solid waste management, and promoting cleanliness across the country.

Key challenges related to Swachh Bharat Mission

Poor Quality of Infrastructure: Reports suggest inadequate construction quality of toilets under the Swachh Bharat Mission (SBM), raising questions about the effectiveness of the initiative.
Inadequate Access to Sanitation Facilities: Despite government claims, communities in slums and peri-urban areas still lack access to public toilets, contributing to sanitation challenges.
Lack of Waste Treatment: Toilet construction in rural areas is not linked to waste treatment, leading to improper disposal of faecal sludge and environmental contamination.
Ineffective Waste Management Technologies: Large, capital-intensive waste management technologies have failed to meet expectations, resulting in health crises and the need for additional resources to fix them.
Privatization of Public Health Services: The outsourcing of sanitation work to private contractors, often employing subjugated communities, has led to the privatization of public health services and perpetuated caste discrimination.
Insufficient Human Resources: Shortage of sanitation inspectors and inadequacy in recruitment efforts hinder effective monitoring and management of sanitation programs at the local level.

Way forward

Enhanced Quality Assurance: Implement stricter quality control measures to ensure the construction of toilets meets prescribed standards. Regular inspections and audits can help identify and rectify any construction deficiencies.
Targeted Infrastructure Development: Prioritize the construction of public toilets in slums and peri-urban areas to improve access to sanitation facilities for marginalized communities.
Integrated Waste Management: Integrate toilet construction with waste treatment facilities in rural areas to ensure proper disposal of faecal sludge.

Mains PYQ

Q What are the impediments in disposing the huge quantities of discarded solid wastes which are continuously being generated? How do we remove safely the toxic wastes that have been accumulating in our habitable environment? (UPSC IAS/2018)

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Minimum Support Prices for Agricultural Produce

PREMIUM – Subsidies – Good or Bad for India?

Explained | Economics | Mains Paper 3: Agriculture and related issues,Major Crops & Cropping Patterns,PDS, Buffer Stock & Food Security

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Agricultural subsidies; Policies and Programs by government;

Mains level: Issue of Subsidies in India; Policies and Programs by Government;

Why in the News?

Issues have been raised by the World Trade Organization (WTO) concerning Agricultural Subsidies in India. Major subsidies in India are on fertilizer, power, credit, output, seed, and export products.

What is Subsidy?

The term subsidy refers to financial assistance in the form of discounts or monetary grants by the Central government to public entities or private institutions.
The objective is to make the products offered by these institutions affordable for public consumption.
The subsidized products are necessary for the larger public good and are a means of supporting the community’s welfare.

Historical Background

Post-Independence Era (1947 onwards): The government introduced various subsidies to promote industrialization, agriculture, and social welfare, aiming to reduce poverty and achieve self-sufficiency in key sectors.
Green Revolution (1960s): During the 1960s and 1970s, Subsidies on fertilizers, seeds, and credit were provided to farmers to encourage the adoption of new agricultural technologies and boost food production.
Liberalization Reforms (1991): While liberalization led to a reduction in some subsidies and a shift towards market-oriented policies, the government continued to provide support to sectors deemed crucial for social welfare and economic development.

Types of Subsidies:

Food subsidy: The food subsidy’s main objective is to provide essential eatables to a large section of the population living below the poverty line in India.
- The major food items supplied to the BPL families (by PDS system) vary as per the region, it includes – Wheat, Rice, Sugar, Milk, Cooking oil, and more.
Education subsidy: The Central government extends the education subsidy to eligible students to pursue higher technical and professional education.
Export subsidy: To make exports attractive and lend support to the companies, the government offers export subsidies.
Fertilizer subsidy: The fertilizer is provided at a fixed MRP that is below the actual price; the government pays the difference between the actual coat and the MRP.

(Note: There are various types of subsidies but UPSC usually asks for Agriculture subsidies)

Subsidies in Agriculture:

Direct Subsidies:

Credit Subsidies: Subsidized credit programs offer farmers loans at lower interest rates or with relaxed repayment terms to finance agricultural activities, such as purchasing inputs, machinery, or land.
- Ex-The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum as per Kisan Credit Card.
Direct Income Transfers: Governments provide direct cash transfers or income support schemes to farmers to supplement their incomes, improve their financial stability, and alleviate rural poverty. Ex-PM Kisan Samman Nidhi Scheme under which support of Rs.6000/- per year

Indirect Subsidies

Fertilizer Subsidies: Governments often provide subsidies on fertilizers to reduce the cost burden on farmers and promote fertilizer use, which enhances crop productivity. Ex- the Union Budget for the fiscal year 2024-25 (FY25) allocated ₹1.64 trillion for fertilizer subsidy.
Seed Subsidies: Subsidies on quality seeds help farmers access improved varieties that are disease-resistant, drought-tolerant or have higher yields. Ex- the government provides a subsidy of Rs. 1000/- per quintal or 50% of the cost.
Water Subsidies: Subsidized irrigation infrastructure and water supply schemes aim to improve water availability for agricultural purposes, especially in regions facing water scarcity. Ex- Pradhan Mantri Krishi Sinchai Yojana.
Minimum Support Prices (MSP): Governments guarantee a minimum price for certain crops to protect farmers from market price fluctuations and ensure stable income. Procurement agencies purchase crops from farmers at MSP, often for staples like wheat, rice, and pulses. Ex- the government of India sets the MSP twice a year for 24 commodities (23 crops + 1 sugarcane).
Crop Insurance Subsidies: Subsidies are offered on crop insurance premiums to encourage farmers to enroll in crop insurance schemes, which protect them against yield or revenue losses due to adverse weather, pests, or other risks. Ex- Pradhan Mantri Fasal Bima Yojana (PMFBY)
Subsidized Agricultural Machinery: Governments may subsidize the purchase of farm machinery, equipment, and tools to mechanize agricultural operations, increase efficiency, and reduce labor costs. Ex- Sub-mission On Agriculture Mechanization (SMAM scheme)

Present issues raised by the WTO:

Market Distortion: The WTO contends that agricultural subsidies have the potential to disrupt global markets. For instance, subsidies like India’s Minimum Support Price (MSP) may result in the undervaluation of Indian agricultural goods on the international stage.
Trade Barriers: Subsidies can create challenges for foreign producers without subsidies to compete effectively in markets where subsidized goods are sold.
Overproduction of certain crops: Subsidies can lead to overproduction of certain crops, which can further distort the market and lead to wastage.
Negative Environmental Impact: Overuse of fertilizers and water for irrigation, encouraged by subsidies, can lead to environmental degradation.
Inequity: The benefits of subsidies often go to larger farmers rather than small-scale farmers who need them the most.

Limitations Faced by Indian Agriculture:

Subsidies on few crops: Subsidies like MSP, which are applicable for only a few crops, have led to cereal-centric agriculture with distorted cropping patterns, as farmers tend to grow only those crops for which they are given subsidies.
Benefiting only wealthy Farmers: As per the Economic Survey 2018, wealthy farmers benefited over small farmers from the farm subsidies. Thus the objective of giving subsidies is not fulfilled. This is the case frequently witnessed in Punjab and Haryana, where affluent farmers enjoy taxpayer money.
Fiscal deficit: Also, the subsidies lead to a substantial financial deficit and burden on the financial exchequer.
Cause of pollution: Subsidies for agriculture can foster the overloading of croplands, which leads to erosion and compaction of topsoil, pollution from synthetic fertilizers and pesticides, and release of greenhouse gases, among other adverse effects.

Way Forward:

Diversification of Subsidies: Expand subsidy programs to cover a wider range of crops, including fruits, vegetables, pulses, and other diversified agricultural products, to promote crop diversification and mitigate the cereal-centric focus.
Targeted Subsidy Programs: Implement targeted subsidy schemes that prioritize support for small and marginalized farmers, ensuring that subsidies reach those who need them most and reducing the disproportionate benefit to wealthy farmers.
Price Stabilization Mechanisms: Develop price stabilization mechanisms beyond MSP, such as futures markets, crop insurance, and warehouse receipt systems, to mitigate price volatility and provide income security to farmers without distorting cropping patterns.

Prelims PYQ

In India, markets in agricultural products are regulated under the (UPSC IAS/2015)

a) Essential Commodities Act, 1955

b) Agricultural Produce Market Committee Act enacted by States

c) Agricultural Produce (Grading and Marking) Act, 1937

d) Food Products Order, 1956 and Meat and Food Products Order, 1973

Mains PYQ

Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017)

Q What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it (UPSC IAS/2013)

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Housing for all – PMAY, etc.

An overview of the PMAY-U scheme | Explained

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters,Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Issues related to the PMAY scheme and the reason behind the failure of the PMAY Scheme

Why in the News?

As the current Union government completes two terms, one of its flagship programs was Housing For All (HfA) by 2022, both in urban and rural areas, planned under the PMAY (Pradhan Mantri Awas Yojana) scheme in 2015.

About the PMAY scheme:

The declared objectives of the scheme included rehabilitation of slum dwellers with private developers’ participation; promotion of affordable housing for the weaker sections through Credit Linked Subsidy Schemes (CLSS); affordable housing in partnership with public and private sectors; and subsidy for Beneficiary-led Construction (BLC).

Issues related to the PMAY Scheme:

PMAY-U faltering Performance: The Pradhan Mantri Awas Yojana – Urban (PMAY-U) initiative has been criticized for its faltering performance. Data from the PMAY dashboard suggests a shortfall of around 40 lakh houses from sanctioned and completed segments.
ISSR Failure: The in-situ slum redevelopment (ISSR) component, aimed at addressing the largest demand in cities, has been particularly criticized for its failure. Only a small number of houses have been sanctioned under ISSR, falling far short of expectations.
The large difference between achievement and need: Despite delivering 80 lakh homes, the PMAY-U program has only addressed about 25.15% of the housing shortage. Even if the remaining sanctioned houses are constructed by the end of 2024, it would only address about 37% of the real need, leaving almost 2.4 crore households without adequate housing.
Not fulfilling the promise as per Spending: The housing program, which received significant budgetary allocation (over $29 billion in the last five years), has not been able to fulfill its promise of “Housing for All.” Despite the focus and financial support, the goal remains unfulfilled.

The reason behind the failure of the PMAY Scheme

Challenges in Slum Rehabilitation: Despite efforts, some projects aimed at slum rehabilitation have faced issues, such as vertical growth leading to increased utility costs and unsuitable living spaces, as well as difficulties in acquiring land.
Neglecting social housing needs: City development plans, including PMAY, are often influenced by consultants favoring capital-intensive solutions, potentially neglecting social housing needs and community involvement.
Less central government’s share: The funding structure of PMAY involves significant contributions from beneficiary households and state governments, with the central government’s share being relatively small.
Limited Government Role: The architecture of PMAY places limited responsibility on the government, particularly in providing interest subsidies and cost-sharing with beneficiaries, leading to concerns about addressing the needs of the landless and the poor.

Way Forward:

Reevaluation of Funding Allocation: The central government should consider increasing its share of funding to ensure adequate resources for housing projects.
Enhanced Focus on Slum Rehabilitation: The government should review and enhance the implementation of the in-situ slum redevelopment (ISSR) component. This may involve better planning, community engagement, and addressing challenges such as land acquisition and vertical growth.
Community Participation and Needs Assessment: Incorporating community participation in the planning and implementation of housing projects is crucial

Mains PYQ

Q Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional fiancé fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion (UPSC IAS/2016)

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Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

How is India planning to boost EV production?

Explained | Economics | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia,Indigenization Of Technology

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Features of the policy and concerns by private players

Why in the News?

The Union government approved a policy to promote India as a manufacturing hub for Electric Vehicles (EVs).

Features of the Electric Vehicles policy:

Reduction of Import Duty: Import duty on electric vehicles (EVs) imported as Completely Built Units (CBUs) with a minimum CIF value of $35,000 is reduced from 70%-100% to 15% for five years.
Waiver of Duty: A maximum of 40,000 EV imports in five years, with a duty waiver of ₹6,484 crore or proportional to investment (whichever is lower), requires a minimum $800 million investment.
Localization Targets: Manufacturers are required to set up manufacturing facilities in India within three years. They must achieve 25% localization by the third year and 50% localization by the fifth year of incentivized operation.
Incentives for Setting Up Manufacturing Facilities: The policy incentivizes manufacturers to establish manufacturing facilities in India by offering reduced import duties and waivers, provided they meet certain investment and localization targets.
Encouragement of Global EV Makers: The policy aims to encourage global EV makers like Tesla and Chinese EV maker BYD to enter the Indian market by providing favorable conditions for setting up manufacturing facilities and importing EVs.

Present concerns raised by Private Players in the Market:

Impact on Domestic Industry: Tata Motors opposed the reduction of import duties, fearing it would negatively affect the domestic industry. They argued that lowering duties could harm the investment climate.
Competitive Disadvantage: Domestic players are concerned that the policy benefits mainly higher-end Original Equipment Manufacturers (OEMs), potentially placing them at a competitive disadvantage in segments below ₹29 lakh.
Favoring Global Players: The policy appears to favor global EV players and Indian joint ventures with such players, potentially making it more challenging for purely domestic players to compete effectively.

Conclusion: The government should engage in dialogue with stakeholders, including domestic players like Tata Motors, to address their concerns and seek their input in shaping the policy framework. Need to implement measures to support domestic players, including providing incentives and support for technology development, innovation, and capacity building.

Mains question for practice

Q Indian Government has recently approved a policy aimed at promoting the country as a manufacturing hub for Electric Vehicles (EVs). Discuss the key features of this policy. Highlight the concerns raised by private players.

Mains PYQ

Q How is efficient and affordable urban mass transport key to the rapid economic development in India? (UPSC IAS/2019)

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