Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Summits, Conventions and Declarations (Part 1)

---

09 May 2020

1.RAMSAR Convention on Wetlands

Brief Intro–

• The Convention was adopted in the Iranian city of Ramsar in 1971 and came into force in 1975 after UNESCO, the Convention’s depositary received the instruments of accession from the countries.
• The RAMSAR Secretariat is based at the headquarters of the International Union for the Conservation of Nature (IUCN) in Gland, Switzerland.
• World Wetlands Day is celebrated on February 2nd.

Key Objectives-

• An intergovernmental treaty that provides the framework for national action and international cooperation for the conservation and wise use of wetlands and their resources.

Year-1971

Place – Ramasar

Key Terms-The Montreux Record – a register of wetland sites on the List of Wetlands of International Importance where changes in ecological character are of concern. It is maintained as part of the Ramsar List.

India specific – India currently has 27 sites designated as Wetlands of International Importance (Ramsar Sites).

2.The World Heritage Convention

Brief Intro–

The Convention recognizes the way in which people interact with nature, and the fundamental need to preserve the balance between the two.

Key Objectives-

The Convention defines the kind of natural or cultural sites which can be considered for inscription on the World Heritage List under UNESCO

Year-1972

3.Stockholm Conference

Brief Intro–

Stockholm Declaration contains 26 principles. These principles provide the basis of an International Policy for the Protection and improvement of the environment.

Key Point-The United Nations Environment Programme (UNEP) has been established by the UNGA in pursuance of the Stockholm Conference.

Year-1972

4.CITES

Brief Intro–

To ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species in the wild, and it accords varying degrees of protection to more than 35,000 species of animals and plants.

Key Objectives-

• It is a multilateral treaty drafted as a result of a resolution adopted in 1963 at a meeting of members of the International Union for Conservation of Nature (IUCN).
• Although CITES is legally binding on the Parties – in other words they have to implement the Convention – it does not take the place of national laws.

India Specific –

The Government of India signed the Convention in July 1976, which was ratified in October 1976

5.Convention on Supplementary Compensation for Nuclear Damage (CSC)

Brief Intro–

Seeks to establish a uniform global legal regime for compensation to victims in the unlikely event of a nuclear accident. It was adopted on 12 September 1997. It can enter into force after ratification by at least 5 countries having a minimum of 400,000 units of installed nuclear capacity.

Key Objectives-

• It provides a uniform framework for channelling liability and providing speedy compensation after the nuclear accident.
• Seeks to encourage regional and global co-operation to promote a higher level of nuclear safety in accordance with the principles of international partnership and solidarity.
• All states are free to participate in it regardless of their presence of nuclear installations on their territories or involvement in existing nuclear liability conventions.
• It has been framed inconsistent with the principles of the Vienna Convention on Civil Liability for Nuclear Damage (1963) and the Paris Convention on Third Party Liability in the Field of Nuclear Energy (1960).

India Specific –

India has ratified Convention on Supplementary Compensation for Nuclear Damage (CSC), 1997 which sets parameters on a nuclear operator’s financial liability.

6.Nuclear security summit

Brief Intro–

The Nuclear Security Summit (NSS) is a world summit, aimed at preventing nuclear terrorism around the globe. The first summit was held in Washington, D.C., United States, on April 12–13, 2010. The second summit was held in Seoul, South Korea, in 2012. The third summit was held in The Hague, Netherlands, on March 24–25, 2014. The fourth summit was held in Washington, D.C. on March 31–April 1, 2016.

Key Objectives-

Aimed at preventing nuclear terrorism around the globe.

India specific-

Prime Minister Narendra Modi attended the NSS 2016 in Washington

7.Ashgabat Agreement

Brief Intro–

Ashgabat Agreement is an international transport and transit corridor facilitating transportation of goods between Central Asia and the Persian Gulf.

Key Objectives-

• The transit agreement provides for a transit corridor across Central Asia and the Middle East through the continuous landmass between Kazakhstan, Uzbekistan, Turkmenistan and Iran before reaching the Persian Gulf and into Oman.
• The objective of this agreement is to enhance connectivity within Eurasian region and synchronize it with other transport corridors within that region including the International North–South Transport Corridor (INSTC).

8.The Conference on Interaction and Confidence-Building Measures in Asia (CICA)

Brief Intro–

The Conference on Interaction and Confidence-Building Measures in Asia (CICA) is an inter-governmental forum for enhancing cooperation towards promoting peace, security and stability in Asia.

Key Objectives-

It is a forum based on the recognition that there is close link between peace, security and stability in Asia and in the rest of the world.enhancing cooperation towards promoting peace, security and stability in Asia.

India Specific-

India is a member of CICA

9.Beijing declaration

Brief Intro–

The Beijing Declaration and Platform for Action (BPfA) is an international declaration of women’s rights set up at the UN’s landmark Fourth World Conference on Women, held in Beijing in 1995.

Key Objectives-

• The BPfA covers 12 key critical matters of concern and areas for action including women and poverty, violence against women and access to power and decision- making.
• It was supported by 189 countries, including the UK, at the 1995 World Conference.gender equality and the empowerment of all women, everywhere.1995.
• It was the outcome of The Fourth World Conference on Women: Action for Equality, Development and Peace convened by UN.

12.The World Health Organization Framework Convention on Tobacco Control (WHO FCTC)

Brief Intro–

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) is a treaty adopted by the 56th World Health Assembly held in Geneva,Switzerland on 21 May 2003.

Key Objectives-

• It became the first World Health Organization treaty adopted under article 19 of the WHO constitution.To protect present and future generations from the devastating health, social, environmental and economic consequences of tobacco consumption and exposure to tobacco smoke” by enacting a set of universal standards stating the dangers of tobacco and limiting its use in all forms worldwide.
• The FCTC established two principal bodies to oversee the functioning of the treaty: the Conference of the parties and the permanent Secretariat. In addition, there are over 50 different intergovernmental and nongovernmental organizations who are official observers to the Conference of the Parties.

India Specific-

India has hosted 7th Framework Convention on Tobacco Control (WHO FCTC).

10.G-7

Brief Intro–

• The Group of Seven (G7) is an informal bloc of industrialized democracies—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—that meets annually to discuss issues such as global economic governance, international security, and energy policy.
• Russia belonged to the forum from 1998 through 2014—then the Group of Eight (G8)—but was suspended after its annexation of Crimea in March of that year.

11.G-20

Brief Intro– It was started in 1999 as a meeting of Finance Ministers and Central Bank Governors in the aftermath of the Southeast Asian (Tiger economies) financial crisis.

Key Objectives-

• The Group of Twenty (G20) is the premier forum for its members’ international economic cooperation and decision-making.
• It is deliberating forum for the governments and central bank governors from 20 major economies on economic issues and other important development challenges.
• In 2008, the first G20 Leaders’ Summit was held in Washington DC, US. The group had played a key role in responding to the global financial crisis. It comprises total 19 countries plus the European Union (EU), representing 85% of global GDP, 80% of international trade, 65% of world’s population. Its members include Australia, Argentina, Brazil, Canada, China, India, France, Germany, Indonesia, Italy, Japan, South Korea, Mexico, Saudi Arabia, Russia, Turkey, South Africa, UK, US and EU. 4.The 2016 summit was held in Hangzhou China.
• It was established for studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.

India Specific-

India is a founding member of G-20

12.International Treaty on Plant Genetic Resources for Food and Agriculture

Brief Intro–

It is a comprehensive international agreement in harmony with the Convention on Biological Diversity, which aims at guaranteeing food security through the conservation, exchange and sustainable use of the world’s plant genetic resources for food and agriculture (PGRFA), as well as the fair and equitable benefit sharing arising from its use.

Key Objectives-

• It also recognises Farmers’ Rights, subject to national laws the protection of traditional knowledge relevant to plant genetic resources for food and agriculture.
• The right to equitably participate in sharing benefits arising from the utilisation of plant genetic resources for food and agriculture;
• The right to participate in making decisions, at the national level, on matters related to the conservation and sustainable use of plant genetic resources for food and agriculture.
• It is a comprehensive international agreement in harmony with the Convention on Biological Diversity.

India Specific-

India has signed the International Treaty on Plant Genetic Resources for Food and Agriculture.

13.Marrakesh treaty

Brief Intro–

• The treaty requires signatories to introduce national law provisions that facilitate the availability of published works in formats like Braille that are accessible to the blind and allow their exchange across borders by organizations working for the visually impaired.

Key Objectives-

• The pact will help import of accessible format copies from the member countries by the Indian authorized entities such as educational institutions, libraries and other institutions working for the welfare of the visually impaired.
• The treaty will also ease translation of imported accessible format copies and export of accessible format copies in Indian languages.To create a set of mandatory limitations and exceptions for the benefit of the blind, visually impaired and otherwise print disabled (VIPs).

14.London Declaration

Brief Intro–

• The London Declaration on Neglected Tropical Diseases is a collaborative disease eradication programme launched on 30 January 2012 in London.
• It was inspired by the World Health Organization 2020 roadmap to eradicate or negate transmission for neglected tropical diseases.
• Officials from WHO, the World Bank, the Bill & Melinda Gates Foundation, the world’s 13 leading pharmaceutical companies, and government representatives from US, UK, United Arab Emirate, Bangladesh, Brazil, Mozambique and Tanzania participated in a joint meeting at the Royal College of Physicians to launch this project.

15.Declaration of Montreal

Brief Intro–

The Declaration of Montreal on Lesbian, Gay, Bisexual, and Transgender Human Rights is a document adopted in Montreal, Quebec, Canada, on July 29, 2006, by the International Conference on LGBT Human Rights which formed part of the first World Outgames.

Key Objectives-

• The Declaration outlines a number of rights and freedoms pertaining to LGBT and intersex people that it is proposed to be universally guaranteed.
• It encompasses all aspects of human rights, from the guarantee of fundamental freedoms to the prevention of discrimination against LGBT people in healthcare, education and immigration.
• The Declaration also addresses various issues that impinge on the global promotion of LGBT rights and intersex human rights.

16. Istanbul Convention

Brief Intro–

• The Istanbul Convention is the first legally-binding instrument which “creates a comprehensive legal framework and approach to combat violence against women” and is focussed on preventing domestic violence, protecting victims and prosecuting accused offenders. The convention aims at prevention of violence, victim protection and “to end with the impunity of perpetrators.
• The Council of Europe. Only European countries have signed this convention.

17.vienna convention on diplomatic relations

Brief Intro–

It is a treaty that came into force in 1964 2.It lays out the rules and regulations for diplomatic relations between countries as well as the various privileges that diplomats and diplomatic missions enjoy.

Key Objectives-

• One of these privileges is legal immunity for diplomats so that they don’t have to face prosecution as per their host country’s laws.
• The Vienna Convention classifies diplomats according to their posting in the embassy, consular or international organisations such as the UN. A nation has only one embassy per foreign country, usually in the capital, but may have multiple consulate offices, generally in locations where many of its citizens live or visit.
• Diplomats posted in an embassy get immunity, along with his or her family members. While diplomats posted in consulates too get immunity, they can be prosecuted in case of serious crimes, that is, when a warrant is issued.
• Besides, their families don’t share that immunity.It has been ratified by 187 countries, including India.

18.Jaipur Summit

Brief Intro–

• The Forum for India–Pacific Islands Cooperation (FIPIC) was launched during Hon’ble Prime Minister, Mr. Narendra Modi’s visit to Fiji in November 2014.
• FIPIC includes 14 of the island countries – Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
• The second summit of the Forum for India Pacific Cooperation (FIPIC-2) in Jaipur on 21-22 August 2015 has made significant progress in strengthening India’s engagement with the 14 Pacific Island countries. Increase Cooperation Between India and 14 Pacific Countries.

Key Objectives-

• Though these countries are relatively small in land area and distant from India, many have large exclusive economic zones (EEZs), and offer promising possibilities for fruitful cooperation.
• India’s focus has largely been on the Indian Ocean where it has sought to play a major role and protect its strategic and commercial interests. The FIPIC initiative marks a serious effort to expand India’s engagement in the Pacific region.
• At this moment, total annual trade of about $300 million between the Indian and Pacific Island countries, where as exports are around $200 million and imports are around $100 million.

19.NPT

Brief Intro–

The NPT is a landmark international treaty whose objective is to prevent the spread of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy and to further the goal of achieving nuclear disarmament and general and complete disarmament.

Key Objectives-

• The Treaty represents the only binding commitment in a multilateral treaty to the goal of disarmament by the nuclear-weapon States. Opened for signature in 1968, the Treaty entered into force in 1970.
• To prevent the spread of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy, and to further the goal of achieving nuclear disarmament and general and complete disarmament.

India Specific-

India has not signed the treaty as India argues that the NPT creates a club of “nuclear haves” and a larger group of “nuclear have-nots” by restricting the legal possession of nuclear weapons to those states that tested them before 1967, but the treaty never explains on what ethical grounds such a distinction is valid.

20.CTBT

Brief Intro–

• The Comprehensive Nuclear-Test-Ban Treaty (CTBT) is a multilateral treaty that bans all nuclear explosions, for both civilian and military purposes, in all environments.
• It was adopted by the United Nations General Assembly on 10 September 1996 but has not entered into force as eight specific states have not ratified the treaty. Nuclear weapon-free
• The treaty thus awaits signature and ratification from India, Pakistan, and North Korea and in addition requires the United States, China, Israel, Iran and Egypt (which have already signed) to formally ratify it.

India Specific-

Even though it is yet to sign the CTBT, India has supported the treaty’s basic principle of banning nuclear explosions by declaring a unilateral moratorium on nuclear testing. India’s expressed support to the essential requirement of the treaty makes it a de facto member of the CTBT.

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

The Northern and Northeastern Mountains with Important Passes

---

08 May 2020

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Schemes regarding Agriculture & Allied Sectors

---

06 May 2020

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Schemes regarding Agriculture & Allied Sectors

---

06 May 2020

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Groupings Related to India

---

05 May 2020

Trans-Pacific Partnership

• The Trans-Pacific Partnership (TPP), or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is a trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (until 23 January 2017) and Vietnam
• The TPP began as an expansion of the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) signed by Brunei Darussalam, Chile, New Zealand, and Singapore in 2005
• The TPP contains measures to lower both non-tariff and tariff barriers to trade and establish an investor-state dispute settlement (ISDS) mechanism
• The agreement will enter into force after ratification by all signatories if this occurs within two years
• APEC members may accede to the TPP, as may any other jurisdiction to which existing TPP members agree. After an application for membership is received, a commission of parties to the treaty negotiates conditions for accession.

BRICS

• BRICS is the acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
• Originally the first four were grouped as “BRIC” (or “the BRICs”), before the induction of South Africa in 2010.
• The BRICS members are known for their significant influence on regional affairs; all are members of G20.
• Since 2009, the BRICS nations have met annually at formal summits. China hosted the 9th BRICS summit in Xiamen on September 2017, while Brazil hosted the most recent 11th BRICS summit on 13-14 November 2019.

New Development Bank and the Fortaleza Declaration

• During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
• In the Fortaleza Declaration, the leaders stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to collective commitments for achieving the goal of strong, sustainable and balanced growth.
• The bank was established in July 2015 by the BRICS countries (Brazil, Russia, India, China and South Africa).
• The aim of the bank is to mobilize funding for infrastructure and sustainable development.
• Its ownership structure is unique, as the BRICS countries each have an equal share and no country has any veto power.
• In this sense, the bank is a physical expression of the desire of emerging markets to play a bigger role in global governance.
• NDB was created to help fill the funding gap in the BRICS economies and was intended to grow its global scope over time.
• The bank, with its subscribed capital base of US$50bn, is now poised to become a meaningful additional source of long-term finance for infrastructure in its member countries.

Regional Comprehensive Economic Partnership (RCEP)

• The Regional Comprehensive Economic Partnership (RCEP) is a trade deal that was being negotiated between 16 countries.
• They include the 10 ASEAN members and the six countries with which the bloc has free trade agreements (FTAs) — India, Australia, China, Korea, Japan, and New Zealand.
• The purpose of the deal is to create an “integrated market” spanning all 16 countries.
• This means that it would be easier for the products and services of each of these countries to be available across the entire region.

RCEP – India

• It comprises half of the world population and accounts for nearly 40% of the global commerce and 35% of the GDP. RCEP would have become the world’s largest FTA after finalisation, with India being the third-biggest economy in it.
• Without India, the RCEP does not look as attractive as it had seemed during negotiations.
• Divided ASEAN – ASEAN has been keen on a diversified portfolio so that member states can deal with major powers and maintain their strategic autonomy. ASEAN member states have tried to keep the U.S. engaged in the region.
• Act East policy has been well received. With China’s rise in the region, ASEAN member states have been keen on Indian involvement in the region.
• Indo-Pacific – India’s entire Indo-Pacific strategy might be open to question if steps are not taken to restore India’s profile in the region.
• Rejected China’s dominance – India signalled that, despite the costs, China’s rise has to be tackled both politically and economically.

Shanghai Cooperation Organisation (SCO)

• After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
• The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
• The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
• Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority:
• The fight against the “three evils” of terrorism, separatism and extremism has become its mantra.
• Today, areas of cooperation include themes such as economics and culture.

India’s entry to the SCO

• India and Pakistan both were observer countries.
• While Central Asian countries and China were not in favour of expansion initially, the main supporter — of India’s entry in particular — was Russia.
• A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
• From 2009 onwards, Russia officially supported India’s ambition to join the SCO. China then asked for its all-weather friend Pakistan’s entry.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)

• The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity. This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration.
• The regional group constitutes a bridge between South and South-East Asia and represents a reinforcement of relations among these countries.
• BIMSTEC has also established a platform for intra-regional cooperation between SAARC and ASEAN members.  The BIMSTEC region is home to around 1.5 billion people which constitute around 22% of the global population with a combined gross domestic product (GDP) of 2.7 trillion economies. In the last five years, BIMSTEC Member States have been able to sustain an average 6.5% economic growth trajectory despite a global financial meltdown.

SAARC & SAARC Countries

• The South Asian Association for Regional Cooperation (SAARC) is a regional intergovernmental organization and geopolitical union in South Asia.  Its member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka.  SAARC was founded in Dhaka in 1985.
• Its secretariat is based in Kathmandu.
• The organization promotes the development of economic and regional integration.
• It launched the South Asian Free Trade Area in 2006.
• SAARC maintains permanent diplomatic relations at the United Nation as an observer and has developed links with multilateral entities.
• Observers Of SAARC: – States with observer status include Australia, China, the European Union, Iran, Japan, Mauritius Myanmar, South Korea and the United States.

Association of Southeast Asian Nations (ASEAN)

• The Association of Southeast Asian Nations is a regional intergovernmental organization comprising ten Southeast Asian countries
• It promotes Pan-Asianism and intergovernmental cooperation and facilitates economic, political, security, military, educational and socio-cultural integration amongst its members and other Asian countries
• It members are Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam
• ASEAN shares land and maritime borders with India, China
• ASEAN is an official United Nations Observer.

The Nuclear Suppliers Group (NSG)

• The Nuclear Suppliers Group (NSG) is a group of nuclear supplier countries that seeks to contribute to the non-proliferation of nuclear weapons through the implementation of two sets of Guidelines for nuclear exports and nuclear-related exports.
• One of the critical elements for inclusion into the NSG is that the member countries need to signatories of the NPT, a proposal which India has categorically disagreed.
• However considering India’s history of nuclear non-proliferation, the US and subsequently the NSG have shown some recognition and granted India with the waiver of dealing with other countries for nuclear technology.

Recent Developments

• Present Indian government embarked to pursue the ambitious goal of NSG membership aggressively.
• The prime minister visited countries like the USA, Netherlands, Mexico, and Portugal to secure support from these countries.
• US administration under Obama and Donald trump reiterated their support for Indian entry to the NSG. Russia also extended its support.
• NSG takes a decision based on a consensus of the member countries. So it is important to secure the support of each and every member country.
• China is against the granting membership. Insisted on a criteria-based approach for the non-NPT (Nuclear Non-Proliferation Treaty) signatory countries.
• China has also maintained that for non-NPT members some definite criteria should be evolved rather than granting country-specific waivers. At other times, it has stated that Pakistan also has similar credentials to join the NSG; and that if India is admitted; Pakistan should also be admitted simultaneously.
• Some other countries, including Turkey, Switzerland, Mexico and New Zealand, were among those which have stressed on the criteria-based approach, without opposing India’s application outright.

Organisation for the Prohibition of Chemical Weapons (OPCW)

• OPCW is an intergovernmental organization and the implementing body for the Chemical Weapons Convention, which entered into force on 29 April 1997
• The OPCW, with its 193 member states, has its seat in The Hague, Netherlands, and oversees the global endeavour for the permanent and verifiable elimination of chemical weapons
• The organization promotes and verifies the adherence to the Chemical Weapons Convention, which prohibits the use of chemical weapons and requires their destruction
• Verification consists both of evaluation of declarations by member states and onsite inspections
• The OPCW has the power to say whether chemical weapons were used in an attack it has investigated
• The organization was awarded the 2013 Nobel Peace Prize “for its extensive efforts to eliminate chemical weapons”

The Australian Group

• The Australia Group is a multilateral export control regime (MECR) and an informal group of countries (now joined by the European Commission) established in 1985 (after the use of chemical weapons by Iraq in 1984) to help member countries to identify those exports which need to be controlled so as not to contribute to the spread of chemical and biological weapons
• The group, initially consisting of 15 members, held its first meeting in Brussels, Belgium, in September 1989. With the incorporation of India on January 19, 2018, it now has 43 members, including Australia, the European Commission, all 28 member states of the European Union, Ukraine, and Argentina
• The name comes from Australia’s initiative to create the group. Australia manages the secretariat
• The initial members of the group had different assessments of which chemical precursors should be subject to export control
• Later adherents initially had no such controls
• Today, members of the group maintain export controls on a uniform list of 54 compounds, including several that are not prohibited for export under the Chemical Weapons Convention but can be used in the manufacture of chemical weapons
• In 2002, the group took two important steps to strengthen export control
• The first was the “no-undercut” requirement, which stated that any member of the group considering making an export to another state that had already been denied an export by any other member of the group must first consult with that member state before approving the export
• The second was the “catch-all” provision, which requires member states to halt all exports that could be used by importers in chemical or biological weapons programs, regardless of whether the export is on the group’s control lists.
• Delegations representing the members meet every year in Paris, France

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Keywords in Budget and Eco Survey

---

04 May 2020

The Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2019-20 in the Parliament today. The Key Highlights of the Survey are as follows:

Wealth Creation: The Invisible Hand Supported by the Hand of Trust

• The big idea from the Economic Survey 2019-20 is the need to push towards increasing the number of wealth creators in the Indian economy.
• The Survey states that to achieve the goal of becoming a $5-trillion economy, the invisible hand of markets will need the support of “the hand of trust”.

Wealth Creation

• Essentially, this means that regulation and rules in the economy should be such that they make it easy to do business but not turn into crony capitalism.
• The Survey states: “The invisible hand needs to be strengthened by promoting pro-business policies to:

1. Provide equal opportunities for new entrants, enable fair competition and ease doing business,
2. Eliminate policies that unnecessarily undermine markets through government intervention,
3. Enable trade for job creation, and
4. Efficiently scale-up the banking sector to be proportionate to the size of the Indian economy.”

How can this be done?

• The Survey introduces the idea of “trust as a public good that gets enhanced with greater use”.
• In other words, it states that policies must empower transparency and effective enforcement using data and technology to enhance this public good.
• A key element here is the need to increase the opportunities for new entrants.
• “Equal opportunity for new entrants is important because… a 10 per cent increase in new firms in a district yields a 1.8 per cent increase in Gross Domestic District Product (GDDP)”.
• According to the Survey, the right policy mix can boost job creation

Focus on Ethical Wealth Creation

• The Survey emphasised on the importance of ‘Ethical Wealth Creation’, as the key to making India $5 trillion economies by 2025.
• Krishnamurthy V. Subramanian, the Chief Economic Adviser of Ministry of Finance has done a commendable job in producing a thought-provoking masterpiece on ‘ethical wealth creation’.

---

Pro-business versus Pro-markets Strategy

• Survey says that India’s aspiration of becoming a $5 trillion economy depends critically on:

1. Promoting a ‘pro-business’ policy that unleashes the power of competitive markets to generate wealth.
2. Weaning away from ‘pro-crony’ policy that may favour specific private interests, especially powerful incumbents.

• Pro-crony policies such as discretionary allocation of natural resources till 2011 led to rent-seeking by beneficiaries while the competitive allocation of the same post-2014 ended such rent extraction.

Strengthening the invisible hand by promoting pro-business policies to:

1. Provide equal opportunities for new entrants.
2. Enable fair competition and ease doing business.
3. Eliminate policies unnecessarily undermining markets through government intervention.
4. Enable trade for job creation.
5. Efficiently scale-up the banking sector.

• Introducing the idea of trust as a public good, which gets enhanced with greater use.
• The survey suggests that policies must empower transparency and effective enforcement using data and technology.

---

Entrepreneurship at the Grassroots

• Entrepreneurship as a strategy to fuel productivity growth and wealth creation.
• India ranks third in a number of new firms created, as per the World Bank.
• New firm creation in India increased dramatically since 2014:

1. 2 % cumulative annual growth rate of new firms in the formal sector during 2014-18, compared to 3.8 % during 2006-2014.
2. About 1.24 lakh new firms created in 2018, an increase of about 80 % from about 70,000 in 2014.

• The survey examines the content and drivers of entrepreneurial activity at the bottom of the administrative pyramid – over 500 districts in India.
• New firm creation in services is significantly higher than that in manufacturing, infrastructure or agriculture.
• Survey notes that grassroots entrepreneurship is not just driven by necessity.
• A 10 percent increase in registration of new firms in a district yields a 1.8 % increase in Gross Domestic District Product (GDDP).

Impact of education on entrepreneurship

• Literacy and education in a district foster local entrepreneurship significantly:

1. The impact is most pronounced when literacy is above 70 per cent.
2. New firm formation is the lowest in eastern India with the lowest literacy rate (59.6 % as per 2011 Census).

• Physical infrastructure quality in the district influences new firm creation significantly.
• Ease of Doing Business and flexible labour regulation enable new firm creation, especially in the manufacturing sector.
• Survey suggests enhancing ease of doing business and implementing flexible labour laws can create maximum jobs in districts and thereby in the states.

---

Divestment in public sector undertakings

• The Survey has aggressively pitched for divestment in PSUs by proposing a separate corporate entity wherein the government’s stake can be transferred and divested over a period of time.
• The survey analysed the data of 11 PSUs that had been divested from 1999-2000 and 2003-04 and compared the data with their peers in the same industry.
• Further, the survey has said privatized entities have performed better than their peers in terms of net worth, profit, return on equity and sales, among others.
• The government can transfer its stake in listed CPSEs to a separate corporate entity.
• This entity would be managed by an independent board and would be mandated to divest the government stake in these CPSEs over a period of time.
• This will lend professionalism and autonomy to the disinvestment programme which, in turn, would improve the economic performance of the CPSEs.

---

Golden jubilee of bank nationalization: Taking stock

• The survey observes 2019 as the golden jubilee year of bank nationalization
• Accomplishments of lakhs of Public Sector Banks (PSBs) employees cherished and an objective assessment of PSBs suggested by the Survey.
• Since 1969, India’s banking sector has not developed proportionately to the growth in the size of the economy.
• India has only one bank in the global top 100 – same as countries that are a fraction of its size: Finland (about 1/11th), Denmark (1/8th), etc.
• A large economy needs an efficient banking sector to support its growth.

The onus of supporting the economy falls on the PSBs accounting for 70 % of the market share in Indian banking:

1. PSBs are inefficient compared to their peer groups on every performance parameter.
2. In 2019, investment for every rupee in PSBs, on average, led to the loss of 23 paise, while in NPBs it led to the gain of 9.6 paise.
3. Credit growth in PSBs has been much lower than NPBs for the last several years.

Solutions to make PSBs more efficient:

• Employee Stock Ownership Plan (ESOP) for PSBs’ employees
• Representation on boards proportionate to the blocks held by employees to incentivize employees and align their interests with that of all shareholders of banks.
• Creation of a GSTN type entity that will aggregate data from all PSBs and use technologies like big data, artificial intelligence and machine learning in credit decisions for ensuring better screening and monitoring of borrowers, especially the large ones.

---

Doubts regarding GDP Growth

• GDP growth is a critical variable for decision-making by investors and policymakers. Therefore, the recent debate about the accuracy of India’s GDP estimation following the revised estimation methodology in 2011 is extremely significant.
• As countries differ in several observed and unobserved ways, cross-country comparisons have to be undertaken by separating the effect of other confounding factors and isolating effect of methodology revision alone on GDP growth estimates.
• Models that incorrectly over-estimate GDP growth by 2.7 % for India post-2011 also misestimate GDP growth over the same period for 51 out of 95 countries in the sample.

---

Fiscal Developments

• Revenue Receipts registered a higher growth during the first eight months of 2019-20, compared to the same period last year, led by considerable growth in Non-Tax revenue.
• Gross GST monthly collections have crossed the mark of Rs. 1 lakh crore for a total of five times during 2019-20 (up to December 2019).
• Structural reforms undertaken in taxation during the current financial year:
• Change in the corporate tax rate.
• Measures to ease the implementation of GST.
• Fiscal deficit of states within the targets set out by the FRBM Act.
• Survey notes that the General Government (Centre plus States) has been on the path of fiscal consolidation.

---

External Sector

Balance of Payments (BoP):

• India’s BoP position improved from US$ 412.9 bn of forex reserves in end-March, 2019 to US$ 433.7 bn in end September 2019.
• Current account deficit (CAD) narrowed from 2.1% in 2018-19 to 1.5% of GDP in H1 of 2019-20.
• Foreign reserves stood at US$ 461.2 bn as on 10^th January 2020.

Global trade:

• India’s merchandise trade balance improved from 2009-14 to 2014-19, although most of the improvement in the latter period was due to more than 50% decline in crude prices in 2016-17.
• India’s top five trading partners continue to be USA, China, UAE, Saudi Arabia and Hong Kong.

Exports:

• Top export items: Petroleum products, precious stones, drug formulations & biologicals, gold and other precious metals.
• Largest export destinations in 2019-20 (April-November): United States of America (USA), followed by the United Arab Emirates (UAE), China and Hong Kong.
• The merchandise exports to GDP ratio declined, entailing a negative impact on BoP position.
• A slowdown of world output had an impact on reducing the export to GDP ratio, particularly from 2018-19 to H1 of 2019-20.
• Growth in Non-POL exports dropped significantly from 2009-14 to 2014-19.

Imports:

•  Top import items: Crude petroleum, gold, petroleum products, coal, coke & briquettes.
•  India’s imports continue to be largest from China, followed by USA, UAE and Saudi Arabia.
•  Merchandise imports to GDP ratio declined for India, entailing a net positive impact on BoP.
• Large Crude oil imports in the import basket correlates India’s total imports with crude prices. As crude price raises so does the share of crude in total imports, increasing imports to GDP ratio.

Logistics industry of India:

• Currently estimated to be around US$ 160 billion.
• Expected to touch US$ 215 billion by 2020.
• According to World Bank’s Logistics Performance Index, India ranks 44th in 2018 globally, up from 54th rank in 2014.

Direct investments and remittances:

• Net FDI inflows continued to be buoyant in 2019-20 attracting US$ 24.4 bn in the first eight months, higher than the corresponding period of 2018-19.
• Net FPI in the first eight months of 2019-20 stood at US$ 12.6 bn.
• Net remittances from Indians employed overseas continued to increase, receiving US$ 38.4 billion in H1 of 2019-20 which is more than 50% of the previous year level.

External debt:

• Remains low at 20.1% of GDP as at end September, 2019.
• After significant decline since 2014-15, India’s external liabilities (debt and equity) to GDP increased at the end of June, 2019 primarily by increase in FDI, portfolio flows and external commercial borrowings (ECBs).

---

Monetary Management and Financial Intermediation

Monetary policy:

• Remained accommodative in 2019-20.
• Repo rate was cut by 110 basis points in four consecutive MPC meetings in the financial year due to slower growth and lower inflation.
• However, it was kept unchanged in the fifth meeting held in December 2019.
• In 2019-20, liquidity conditions were tight for initial two months; but subsequently it remained comfortable.

---

Prices and Inflation

Inflation Trends:

• Inflation witnessing moderation since 2014
• Consumer Price Index (CPI) inflation increased from 3.7 per cent in 2018-19 (April to December, 2018) to 4.1 per cent in 2019-20 (April to December, 2019).
• WPI inflation fell from 4.7 per cent in 2018-19 (April to December, 2018) to 1.5 per cent during 2019-20 (April to December, 2019).

Drivers of CPI – Combined (C) inflation:

• During 2018-19, the major driver was the miscellaneous group
• During 2019-20 (April-December), food and beverages was the main contributor.
• Among food and beverages, inflation in vegetables and pulses was particularly high due to low base effect and production side disruptions like untimely rain.

Cob-web Phenomenon (Cyclical fluctuations in inflation) for Pulses:

• Farmers base their sowing decisions on prices witnessed in the previous marketing period.
• Measures to safeguard farmers like procurement under Price Stabilization Fund (PSF), Minimum Support Price (MSP) need to be made more effective.

The volatility of Prices:

• The volatility of prices for most of the essential food commodities with the exception of some of the pulses has actually come down in the period 2014-19 as compared to the period 2009-14.
• Lower volatility might indicate the presence of better marketing channels, storage facilities and effective MSP system.

Essential Commodities Act is outdated

• The Centre’s imposition of stock limits in a bid to control the soaring prices of onions over the last few months actually increased price volatility, according to the ES.
• The finding came in a hard-hitting attack in the report against the Essential Commodities Act (ECA) and other “anachronistic legislation” and interventionist government policies, including drug price control, grain procurement and farm loan waivers.
• The Centre invoked the Act’s provisions to impose stock limits on onions after heavy rains wiped out a quarter of the Kharif crop and led to a sustained spike in prices.
• However the Survey showed that there was actually an increase in price volatility and a widening wedge between wholesale and retail prices.
• The lower stock limits must have led the traders and wholesalers to offload most of the kharif crop in October itself which led to a sharp increase in the price volatility.

---

Agriculture

• Agricultural productivity is also constrained by a lower level of mechanization in agriculture which is about 40 % in India, much lower than China (59.5 %) and Brazil (75 %).
• With regard to the Agri sector, the Survey argued that the beneficiaries of farm loan waivers consume less, save less, invest less and are less productive.
• It added that the government procurement of foodgrains led to a burgeoning food subsidy burden and inefficiencies in the markets, arguing for a shift to cash transfers instead.

Food Management

• The share of agriculture and allied sectors in the total Gross Value Added (GVA) of the country has been continuously declining on account of relatively higher growth performance of non-agricultural sectors.
• GVA at Basic Prices for 2019-20 from ‘Agriculture, Forestry and Fishing’ sector is estimated to grow by 2.8 %.

---

Services Sector

The increasing significance of services sector in the Indian economy:

1. About 55 % of the total size of the economy and GVA growth.
2.  Two-thirds of the total FDI inflows into India.
3. About 38 per cent of total exports.
4. More than 50 % of GVA in 15 out of the 33 states and UTs.

---

Social Infrastructure, Employment and Human Development

• The expenditure on social services (health, education and others) by the Centre and States as a proportion of GDP increased from 6.2 % in 2014-15 to 7.7 % in 2019-20 (BE).
• India’s ranking in the Human Development Index improved to 129 in 2018 from 130 in 2017:
• With 1.34 % average annual HDI growth, India is among the fastest-improving countries
• Gross Enrolment Ratio at secondary, higher secondary and higher education level needs to be improved.
• Gender disparity in India’s labour market widened due to a decline in female labour force participation especially in rural areas:
• Around 60 % of productive age (15-59) group engaged in full-time domestic duties.

---

Sustainable Development and Climate Change

• India moving forward on the path of SDG implementation through well-designed initiatives
• SDG India Index:

1. Himachal Pradesh, Kerala, Tamil Nadu, Chandigarh are front runners.
2. Assam, Bihar and Uttar Pradesh come under the category of Aspirants.

• India hosted COP-14 to UNCCD which adopted the Delhi Declaration: Investing in Land and Unlocking Opportunities.
• COP-25 of UNFCCC at Madrid:

1. India reiterated its commitment to implement the Paris Agreement.
2. COP-25 decisions include efforts for climate change mitigation, adaptation and means of implementation from developed country parties to developing country parties.

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important UN Organizations in News

---

02 May 2020

United Nation Overview:

• The United Nations is an international organization founded in 1945.  It is currently made up of 193 Member States.  The mission and work of the United Nations are guided by the purposes and principles contained in its founding Charter.
• Due to the powers vested in its Charter and its unique international character, the United Nations can take action on the issues confronting humanity in the 21st century, such as peace and security, climate change, sustainable development, human rights, disarmament, terrorism, humanitarian and health emergencies, gender equality, governance, food production, and more.
• The UN also provides a forum for its members to express their views in the General Assembly, the Security Council, the Economic and Social Council, and other bodies and committees. By enabling dialogue between its members, and by hosting negotiations, the Organization has become a mechanism for governments to find areas of agreement and solve problems together.
• The main organs of the UN are the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice, and the UN Secretariat.  All were established in 1945 when the UN was founded.

 

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Financial Institutions in News

---

01 May 2020

Development Finance Institutions

The Need of DFIs

Classification of DFIs

All India DFIs	Special DFIs	Investment Institutions	Refinance Institutions	State Level DFIs
Industrial Finance Corporation of India Industrial Development Bank of India Small Industries Development Bank of India (SIDBI) ICICI ICICI ceased to be a DFI and converted into a Bank on 30 March 2002. IDBI was converted into a Bank on 11 October 2004.	EXIM Bank IFCI Venture Capitalist Fund Tourism Finance Corporation of India. IDFC.	LIC Union Trust of India. General Insurance Corporation.	National Housing Board. NABARD.	State Financial Corporation. State Industrial Development Corporations.

 

All India Development Finance Institutions

IFCI	ICICI	IDBI	SIDBI
IFCI was the first DFI to be setup in 1948.	It was setup in January 1995.	The IDBI was initially set up as a Subsidiary of the RBI. In February 1976, IDBI was made fully autonomous.	SIDBI was setup as a subsidiary of IDBI in 1989.
With Effect from 1 July 1993, IFCI has been converted into Public Limited Company.	With effect from April 2002, ICICI has been converted into a Bank.	The IDBI was designated as apex organisation in the field of Development Financing. However, it was converted in a bank wef Oct 2004.	The SIDBI was designated as apex organisation in the field of Small Scale Finance.The Union Budget of 1998-99 proposed the delinking of SIDBI from IDBI.
The key function of IFCI was; granting long-term loans(25 years and above); Guaranteeing rupee loans floated in open markets by industries; Underwriting of shares and debentures; Providing guarantees for industries.	The key functions of ICICI were; to provide long term or medium term loans or equity participation; Guaranteeing loans from other private sources; providing consultancy services to industry.	The key functions of IDBI were; it provides refinance against loans granted to industries; it subscribed to the share capital and bond issues of other DFIs; it also acted as the coordinator of DFIs at all India level.	The key function of SIDBI was; to provide assistance to small scale units; initiating steps for technological up gradation and modernization of SSIs; expanding the marketing channel for the Small Scale Industries product; promotion of employment creating SSIs.
IFCI was a public sector DFI.	The ICICI differed from IFCI and IDBI with respect to ownership, management and lending operation. ICICI was a Private sector DFI.	It was a Public sector DFI.

 

Investment Institutions

Union Trust of India	Life Insurance Company	General Insurance Corporation
The UTI was setup on Nov 1963 after Parliament passed the UTI Act.	LIC was set up in 1956 after the insurance business was nationalised.	The GIC was formed by the central government in 1971.
The objective of UTI was to channel the savings of people into equities and corporate debts. The flagship scheme of the UTI was called Unit Scheme 64.	The objective of LIC is to provide assistance in the form of term loans; subscription of shares and debentures;resource support to financial institutions and Life insurance coverages.	The GIC had four subsidiaries; National Insurance Co; New India Assurance; Oriental Insurance; and United India Insurance.
In 2002, the Union Cabinet had decided to split UTI into UTI 1 and UTI 2 as a result of the prolonged crisis in UTI.		The General Insurance Nationalisation Amendment Act, 2002, has delinked the GIC from its four subsidiaries.

 

Commercial Banks

• Organised under the Banking Companies Act, 1956
• They operate on a commercial basis and its main objective is profit.
• They have a unified structure and are owned by the government, state, or any private entity.
• They tend to all sectors ranging from rural to urban
• These banks do not charge concessional interest rates unless instructed by the RBI
• Public deposits are the main source of funds for these banks

What are cooperative banks?

• Cooperative banks are financial entities set up on a co-operative basis and belonging to their members.
• This means that the customers of a cooperative bank are also its owners. They are registered under the States Cooperative Societies Act and they come under the RBI regulation under two laws:

• Banking Regulations Act, 1949
• Banking Laws (Cooperative Societies) Act, 1955
• They aim to promote savings and investment habits among people, especially in rural areas.
• These banks are broadly classified under two categories – Rural and Urban.
• The rural cooperative credit institutions can be further classified into:
• Short-term cooperative credit institutions
• Long-credit institutions

The short-term credit institutions can further be sub-divided into:

• State cooperative banks
• District Central Cooperative banks
• Primary Agricultural Credit Societies

Long-term institutions can either be:

• State Cooperative Agricultural and Rural Development Banks (SCARDBs), or
• Primary Cooperative Agriculture and Rural Development Banks (PCARDBs)
• Urban Cooperative Banks (UCBs) can be further classified into scheduled and non-scheduled.
• The scheduled and unscheduled can either be operating in a single state or multi-state

Regional Rural Banks (RRBs)

• RRBs have Scheduled Commercial Banks operating at the regional level in different states of India. They are recognized under the Regional Rural Banks Act, 1976 Act.
• They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.
• However, RRBs may have branches set up for urban operations and their area of operation may include urban areas too.
• The area of operation of RRBs is limited to the area covering one or more districts in the State.

Their functions

RRBs also perform a variety of different functions. RRBs perform various functions in the following heads:

• Providing banking facilities to rural and semi-urban areas
• Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc.
• Providing Para-Banking facilities like locker facilities, debit and credit cards, mobile banking, internet banking, UPI etc.
• Small financial banks etc.

About NABARD

• NABARD is an apex development financial institution in India, headquartered at Mumbai with regional offices all over India.
• It is India’s specialised bank in providing credit for Agriculture and Rural Development in India.
• The Bank has been entrusted with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
• It was established on the recommendations of B.Sivaraman Committee on 12 July 1982 to implement the NABARD Act 1981.
• NABARD supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks.

About National Housing Bank

• NHB is an All India Financial Institution (AIFl), set up in 1988, under the National Housing Bank Act, 1987.
• The National Housing Policy, 1988 has envisaged the setting up of NHB as the Apex level institution for housing.
• It is an apex agency established to operate as a principal agency to promote housing finance institutions both at local and regional levels.
• It aims to provide financial and other support incidental to such institutions and for matters connected therewith.

EXIM Bank

• EXIM stands for Export-Import
• Export-Import Bank of India is a wholly-owned Govt. of India entity
• Established in 1982
• HQ : New Delhi
• Aim : financing, facilitating and promoting foreign trade of India.
• The EXIM bank extends Line of Credit (loC) to overseas financial institutions, regional development banks, sovereign governments and other entities abroad.
• Thus the EXIM Banks enables buyers in those countries to import developmental and infrastructure, equipment’s, goods and services from India on deferred credit terms.
• The bank also facilitates investment by Indian companies abroad for setting up joint ventures, subsidiaries or overseas acquisitions.

International Financial Services Centres

• IFSCs are intended to provide Indian corporates with easier access to global financial markets, and to complement and promote further development of financial markets in India.
• An IFSC enables bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities and overseas branches/subsidiaries of financial institutions (FIs) to India.
• This is done by offering business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore.
• The first IFSC in India has been set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.

Banks Board Bureau

• Banks Board Bureau is an autonomous body of Union Government of India
  It is tasked to improve the governance of Public Sector Banks, recommend the selection of chiefs of government-owned banks and financial institutions and to help banks in developing strategies and capital raising plans
• It will have three ex-officio members and three expert members in addition to Chairman
• Financial services secretary, deputy governor of the Reserve Bank of India and secretary- public enterprises are BBB’s ex-officio members

Non-Banking Financial Companies

• A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
• A non-banking institution which is a company and has a principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions or in any other manner is also a non-banking financial company (Residuary non-banking company).

NBFCs are doing functions similar to banks. What is the difference between banks & NBFCs?

NBFCs lend and make investments, and hence their activities are akin to that of banks; however, there are a few differences as given below:

1. NBFC cannot accept demand deposits;
2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
4. Unlike Banks which are regulated by the RBI, the NBFCs are regulated by multiple regulators; Insurance Companies- IRDA, Merchant Banks- SEBI, Micro Finance Institutions- State Government, RBI and NABARD.
5. The norm of Public Sector Lending does not apply to NBFCs.
6. The Cash Reserve Requirement also does not apply to NBFCs.

Classification and Categorization of NBFCs

Asset Finance Company	AN AFC is a company which is a financial institution whose principle business is the financing of physical assets such as automobiles, tractors, machines etc.
Investment Company	AN IC is any company which is a financial institution carrying on its principle business of acquisitions of securities.
Loan Company	LC is a financial institution whose primary business is of providing finance by making loans and advances.
Infrastructure Finance Company	IFC is an NBFC which deploys 75% of its total assets in infrastructure loans and has a minimum net owned fund of Re 300 Crore.
Systematically Important Core Investment Company	CIC is an NBFC carrying on the business of acquisition of shares and securities. CIC must satisfy the following conditions:It holds not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, debt or loans in group companies; Its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its Total Assets; (c) it does not trade in its investments in shares, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment; (d) it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI Act, 1934 except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies. (e) Its asset size is ₹ 100 crore or above and (f) It accepts public funds
Infrastructure Debt Fund NBFC	IDF NBFC primary role is to facilitate long term flow of debt into infrastructure projects. Only Infrastructure Finance Companies can sponsor IDF.
Micro Finance NBFC	MFI NBFC is a non-deposit taking NBFC having not less than 85% of its assets in the nature of qualifying assets which satisfy the following criteria:a) loan disbursed by a NBFC-MFI to a borrower with a rural household annual income not exceeding ₹ 1,00,000 or urban and semi-urban household income not exceeding ₹ 1,60,000; b. loan amount does not exceed 50,000 in the first cycle and 1,00,000 in subsequent cycles; c. total indebtedness of the borrower does not exceed 1,00,000; d. tenure of the loan not to be less than 24 months for the loan amount in excess of 15,000 with prepayment without penalty; e. loan to be extended without collateral; f. aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the MFIs; g. loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrower

 

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Traditional Crafts, Music and Dance schools in India

---

30 April 2020

Indian Festivals

Kumbha Mela	Held at all 4 places every 3 years by rotation (Allahabad, Haridwar, Nashik, Ujjain) Associated rivers : Ganga at Haridwar, the Sangam of the Ganga, Yamuna and the mythical Saraswati at Allahabad,  Godawari at Nashik, and Shipra at Ujjain Ardha Kumbh Mela  : Haridwar and Prayag every 6 years Purna Kumbh Mela  : Prayag every 12 years Maha Kumbh Mela  : Prayag every 144 years
Holi	last full moon day of  Phalguna
Maha Shivaratri	13th night in Krishna Paksha of Phalguna
Navaratri	9 forms of Shakti are worshipped on 9 nights
Vinayaga Chaturthi	On occasion of birth of Ganesha
Vasant Panchami	Worshiping Saraswati –  the goddess of knowledge, music and art Children are taught to write their first words; Brahmins are fed ; ancestral worship is performed; the god of love- Kamadeva is worshipped People usually wear yellow garments
Ramzan	Muslims refrain from eating, drinking and sexual relations from dawn until sunset Intended to teach Muslims about patience, humility & spirituality
Guru Purnima	Buddhists in the honour of Lord Buddha who gave his first sermon on this day at Sarnath Hindus on this day offer Puja or pay respect to their Guru
Buddha Poornima	Birth anniversary of Lord Buddha
Christmas	Commemorate the birth of Jesus
Easter	Oldest and holiest Christian festival – the day when Jesus Christ was crucified On this day Jesus Christ rose from the dead and ascended into heaven
Thai Pongal	Harvest festival celebrated in Tamil Nadu, Puducherry and Sri Lanka To thank the Sun God and farmstead livestock Boiling of milk in clay pot symbolize material abundance for household
Muharram	Celebrated on the 1st  month of the Islamic calendar unlawful to fight during this month
Dree Festival	an agricultural rite, which is observed by Apatanis in Arunachal Pradesh involves a sacrifice of fowls, eggs and animals to the sun & moon god to appease these Gods to avoid feminine

Indian Dances

Indian Folk Music

• Baul : It is a type of Bengali music and a religious sect. The lyrics carry influence from Bhakti movement as well as Sufi movement.
• Wanawan : Folk music from Kashmir which is sung during wedding ceremonies.
• Padwani : This music is based on Mahabharata and uses both singing and playing instruments.
• Alha : Song is from Madhya Pradesh and is a heroic ballad song.
• Paani hari : Song is from the state of Rajasthan and is thematically related to water. Songs are generally about women fetching water from nearby well.
• Ovi : Maharashtra and Goan women sing such songs during leisure time.
• Pai song : Songs are mostly from Madhya Pradesh sung during festivals.
• Lavani : Popular folk song from Maharashtra. Music has a powerful rhythm and beats and is suitable for dancing.
• Maand : Developed in the royal circles
• Dandiya raas : Performed in Gujarat and is associated with Holi and Lila of Krishna and Radha at Vrindavan
• Powada : Folk type emerging from Maharashtra
• Khongjom Parva : Important folk music from the state of Manipur.
• Bhagwati : Popular amongst masses of Karnataka and Maharashtra. Musically they are close to ghazals and are sung on a slower pitch.

Classical Dances

The classical dance forms recognised by the Sangeet Natak Akademi and the Ministry of Culture are

• Bharatanatyam, from Tamil Nadu
• Kathak, from Uttar Pradesh and western India
• Kathakali, from Kerala
• Kuchipudi, from Andhra Pradesh
• Odissi, from Odisha
• Sattriya, from Assam
• Manipuri, from Manipur
• Mohiniyattam, from Kerala

Indian Music

MUSIC OF INDIA

The two main traditions of classical music in India are Carnatic music and Hindustani Music. Carnatic Music is found predominantly in the peninsular regions and Hindustani music are found in the northern and central regions.

Hindustani Music

Hindustani music was not only influenced by ancient Hindu musical traditions but also enriched by the Persian performance practices of the Mughals.

Dhrupad is an old style of Hindustani singing, traditionally performed by male singers. The great Indian musician Tansen sang in the Dhrupad style. Dhrupad was the main form of northern Indian classical music but has now given way to Khyal.

Khyal is a form of vocal music in Hindustani music. It was adopted from medieval Persian music It is special as it is based on improvising and expressing emotion.

Another vocal form Tarana are medium to fast-paced songs that are usually performed towards the end of the concert. They consist of a few lines of poetry with rhythmic syllables.

Tappa is a form of Indian semi-classical vocal music. It originated from the folk songs of the camel riders of Punjab and was developed as a form of classical music by Mian Ghulam Nabi Shori.

Thumri is a semi-classical vocal form said to have begun in Uttar Pradesh. The lyrics are typically in Brij Bhasha and are usually romantic.

Ghazal is an originally Persian form of Poetry. In India, Ghazal became the most common form of poetry in the  Urdu language.

Although Hindustani music clearly is focused on vocal performance, recently instrumental Hindustani music is very popular than vocal music especially outside South Asia.

Carnatic Music

Carnatic music is a system of music commonly associated with the southern part of  India especially. Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. Carnatic music is completely melodic with improvised variations. Purandara Dasa is credited with having founded today’s Carnatic music. He is credited with having elevated Carnatic music from religious and devotional music into the realm of performing art. Carnatic music is usually performed by a small ensemble of musicians consist ing of a principal performer (vocalist ) a violin, mridanga ,and a tamburu. Today Carnatic music is presented by musicians in concerts or recordings either vocally or through instruments.

Important Indian Crafts

ZARI

•  Zari is an even thread traditionally made offine gold or silver used in traditional Indian, Pakistani and Persian garments and curtains, etc. Four types of zari are produced in India, namely, real zari, semi real zari, imitation zari and plastic zari.
•  Real zari is made of silver and electroplated with gold, whereas semi real zari has a composition of copper coated with silver and gold electroplating. Surat is the home of zari industry in India. Other clusters producing zari are Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Vadodara, Lathur, Jaipur, Barmer, etc.

Coir Twisting

•  Coir is a natural, eco-friendly, waterproof and exceptionally tensile fibre extracted from the nuts of coconut palms.
•  It is found in abundance and is used for manufacturing a wide range of eco-friendly toys, mats, brushes, mattresses, wall hangings, key rings, pen stands and other home decoratives.
•  This craft is primarily produced in Odisha (Sakhigopal, Puri, Pipli, Bhubaneswar, Batamangala and Kendrapara). It is also produced in Kerala (Ernakulam).

Folk Painting

•  Indian folk paintings are pictorial expressions of village painters which are marked by the subjects chosen from epics like Ramayana and Mahabharata, Indian Puranas as well as daily events. There are several vibrant folk painting types in India in different stages.
•  The Gond tribe of Madhya Pradesh is engaged in floor and wall painting. Warli is a vivid expression of daily and social events of Warli tribe in Maharashtra. Rajasthan is famous for Phad painting done on cloth.
•  Other types of paintings arc Pilhora painting in Gujarat and Madhya Pradesh, Madhubani painting of Bihar, Chitrakar painting of West Bengal, Patachitras in Odisha, and Kalamkar Srikalahasti, Andhra Pradesh.

Metal Ware

•  The metal crafts of India display intricate craftsmanship and fine art in shaping gold, silver, brass, copper into exquisitely designed images, idols, jewellery, and utility items. Different categories of handicrafts that come under metal ware are brass metalware of Moradabad, metal bidri work and bell metal in Madhya Pradesh, Odisha, and so on.
•  India is the largest brassware producer in the world. Major clusters of brassware are Moradabad, Murshidabad, Madurai, Salem, Cuttack and Haryana.
•  Bidriware is a metal handicraft that originatedinBidar, Karnataka. The term
  ‘Bidriware’ originates from the township of Bidar, which is still the main centre of the unique metalware. It is a form of encrusted metalware, where one metal is inlaid on to another.
•  Bidri products include a diverse range of objects including hukka bases, bowls, boxes, candle stands, trays, jewellery and buttons. It travelled from Iran to Ajmer in Rajasthan in the 13th century AD, and from there to Bijapur and flourished during the reign of the Deccan Sultanate.Itis also practised in Aurangabad district in the state of Maharashtra and Hyderabad in Andhra Pradesh. The basic metal used for Bidri is the alloy of zinc and copper.

Filigree and Silverware

•  Filigree is an extremely ancient technique dating back to 4000 years ago. Filigree work is performed on silver and involves significant precision and technicality. Two major clusters of silver filigree in India are Karimnagar in Andhra Pradesh and Cuttack in Odisha.
•  The practice in Karimnagar is about two centuries old. However, it is also practised in Warangal in Andhra Pradesh. Key raw materials used are silver wire, tracing sheet, copper, charcoal, dilute sulphuric acid.

Textile Hand Embroidery

•  In textile hand embroidery, embellishment is made on fabric with threads and sometimes with other materials.
•  There are many popular embroidery clusters such as chikankari and zardozi of Lucknow, katha of Bengal pulkari of Punjab. kutchi embroidery of Gujarat and kashidakari of Kashmir. Zardozi has been traditionally prevalent in Lucknow and the six surrounding districts ofBarabanki, Unnao, Sitapur, Rae Bareli, Hardoi and Amethi.

Textile Hand Printing

•  Hand-printed textiles is a craft in which cloth is dyed with hand or printed using shapes. Various types of hand printing practiced in India are block printing, batik, kalamkari (hand printing by pen) and bandhani (tie and die).
•  Some of the important centres of this craft are in Hyderabad, Machalipattnam, Varanasi, Farrukabad, Bagh, Behrongarh, Indore, Mandsar, Burhanpur, Ahmedabad, Rajkot, Kutch, Bagru, Chittroli, Sanganer, Jaipur and Jodhpur.

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Acts and schemes related to Marginalised Sector

---

29 April 2020

Nai Manzil Scheme

OBJECTIVES –

• To address the educational and livelihood needs of minority communities lagging behind in terms of educational attainments.
• It aims to provide educational intervention by giving the bridge courses to the trainees and getting them Certificates for Class XII and X from distance medium educational system.
• It seeks to provide trade basis skill training in four courses at the same time of formal education, in field of (i) Manufacturing (ii) Engineering (iii) Services (iv) Soft skills. It intends to cover people in between 17 to 35 age group from all minority communities as well as Madrasa students.
• Nodal Ministry –The Union Ministry of Minority Affairs

Nai Roshni

OBJECTIVES –

• Empower and install confidence in women of minority communities by equipping them with knowledge, tools and techniques to interact with government systems, banks and intermediaries
• Nodal Ministry –The Union Ministry of Minority Affairs

USTAAD Scheme

OBJECTIVES –

• The scheme aims at preserving and promoting the rich heritage of the traditional arts & crafts of the Minority communities. 2.In the light of globalisation & competitive market, these crafts have gradually lost their employability. 3.It also envisages at boosting the skill of craftsmen, weavers and artisans who are already engaged in the traditional ancestral work.
• Nodal Ministry –The Union Ministry of Minority Affairs

Hunar Haat

OBJECTIVES –

• It is aimed at promoting and supporting artisans from Minority communities and providing them domestic as well as international market for display and sell their products.
• The Hunar Haat exhibition has been organised by the National Minorities Development & Finance Corporation (NMDFC) under “USTTAD” scheme In it about 184 master artisans from across the country are showcasing their traditional art and skills at about 100 stalls at the international platform.
• It seeks to provide an excellent platform to artisans belonging to Minority communities from across nation to display their art and skills before domestic and international visitors.
• Nodal Ministry –The Union Ministry of Minority Affairs

Stanapan Suraksha Scheme

OBJECTIVES –

• To promote breastfeeding and keep a tab on “inappropriate” promotion of baby food items. Stanpan Suraksha is first-of-its-kind app deveopled for promoting breastfeeding and baby food promotion reporting mechanism.
• Using it any person can click a photograph of inappropriate baby food promotion around them and related equipment and send it to BPNI.
• The app also has a city-wise database of trained breastfeeding counsellor to educate and provide assistance to mothers during antenatal and postnatal period. It has sign up option for mothers who wish to become a breastfeeding counsellor, pledging for petition and donation.
• Nodal Ministry –Ministry of Tribal Affairs

Eklavya Model Residential Schools

• Eklavya Model Residential School Scheme was started in 1998
• First school was started in the year 2000 in Maharashtra.
• EMRSs have been functioning as institutions of excellence for tribal students.
• In order to further educational opportunities for more ST children, Government has sought to extend the facility of EMRSs in all the 672 Blocks where ST population is more than 50% of the total population in a span of next five years.
• Funds for establishing the school are arranged by both Centre and State government together.
• Nodal Ministry –Ministry of Tribal Affairs

Pre-Matric Scholarship Scheme

OBJECTIVES –

• To decrease the dropout rate in the transition from elementary to the secondary stage. Given for Class 9th and 10th.
• Nodal Ministry –Ministry of Social Justice & Empowerment

Babu Jagjivan Ram Chhatrawas Yojana

OBJECTIVES –

• Educational empowerment of Scheduled castes.
• Central assistance is provided to the implementing agencies viz. State Governments/UT Administrations/ Central and State Universities/ Non-Governmental Organisations/Deemed Universities in the private sector, for construction of fresh hostels/expansion of existing hostel facilities for Scheduled Castes students.
• Nodal Ministry –Ministry of Social Justice & Empowerment

National Overseas Scholarship Scheme.

OBJECTIVES –

• Financial support to SC and ST students pursuing Master’s level courses and PhD/Post-Doctoral courses abroad.
• Nodal Ministry –Ministry of Social Justice & Empowerment

Scheme for up-gradation of merit of SC students.

OBJECTIVES –

• Upgrade the merit of SC students by providing them remedial and special coaching in classes IX to XII.
• Income Ceiling: Rs. 3.00 Lakh per annum .
• Nodal Ministry –Ministry of Social Justice & Empowerment

Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

OBJECTIVES –

• To rehabilitate all the remaining manual scavengers and their dependents in alternative occupations.The main features of the Scheme include one-time cash assistance, training with stipend and concessional loans with subsidy for taking up alternative occupations.
• Nodal Ministry –Ministry of Social Justice & Empowerment

Sugmay Bharat Abhiyaan

OBJECTIVES –

• The target of this scheme is to make at least fifty government buildings disabled-friendly under the campaign in each of the state till the end of 2016 and make 25 per cent of the public transport vehicles under the government as disabled-friendly till mid-2017.
• A remarkable feature of the scheme is that a website will also be made where the people can put their views on the accessibility of any building.
• The international airports in the country and railway stations which come under A1, A and B categories will be made fully disabled-friendly.
• Special set-top boxes will be made available to make watching TV more convenient for the visually impaired. In the next 5 years, almost 200 persons will be trained to speak in sign languages on government TV channels. Government websites will also be made friendlier by using text to speech option.
• Under the scheme, the Ministry of Social Justice and Empowerment will give free motorized tricycles to persons with 70-90% disability.
• A Sugamya Bharat mobile app which can provide information on disabled-friendly public facilities in a city, will be launched under the scheme.
• For awareness, a team of experts will conduct workshops for sensitizing the main parties including builders and activists.
• Nodal Ministry – Ministry of Social Justice & Empowerment

Disha

OBJECTIVES –

• Early Intervention and School Readiness Scheme.
• This is an early intervention and school readiness scheme for children upto 10 years with the disabilities covered under the National Trust Act.
• Nodal Ministry –Ministry of Social Justice & Empowerment

VIKAASDay Care

OBJECTIVES –

• A day care scheme for persons with autism, cerebral palsy, mental retardation and multiple disabilities, above 10 years for enhancing interpersonal and vocational skills.
• Nodal Ministry –Ministry of Social Justice & Empowerment

SAMARTH Respite Care

OBJECTIVES –

• A scheme to provide respite home for orphans, families in crisis, Persons with Disabilities (PwD) from BPL, LIG families with at least one of the four disabilities covered under the National Trust Act.
• Nodal Ministry –Ministry of Social Justice & Empowerment

GHARAUNDA

OBJECTIVES –

• Group Home for Adults.
• This scheme provides housing and care services throughout the life of the person with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.
• Nodal Ministry –Ministry of Social Justice & Empowerment

NIRMAYA Health Insurance Scheme.

OBJECTIVES –

• This scheme is to provide affordable Health Insurance to persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.
• Nodal Ministry –Ministry of Social Justice & Empowerment

SAHYOGI Caregiver training scheme

OBJECTIVES –

• A scheme to set up Caregiver Cells (CGCs) for training and creating skilled workforce of caregivers to care for Person with Disabilities (PwD) and their families.
• Nodal Ministry –Ministry of Social Justice & Empowerment

GYAN PRABHA Educational support

OBJECTIVES –

• Scheme to encourage people with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities for pursuing educational/ vocational courses.
• Nodal Ministry –Ministry of Social Justice & Empowerment.

PRERNA Marketing Assistance.

OBJECTIVES –

• A marketing scheme to create viable & widespread channels for the sale of products and services produced by persons with autism, cerebral palsy, mental retardation and multiple disabilities
• Nodal Ministry – Ministry of Social Justice & Empowerment