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Distribution: weekly

  • How to improve the income and Productivity of Indian labour?

     

    Slowdown in demand

    • The bigger medium-term problem facing Indian economy is the slowdown of aggregate demand — private final consumption expenditure (PFCE), investment and exports.
    • The largest component of GDP, PFCE, has declined as a share of GDP 68 per cent in 1990 to 56 per cent of GDP in 2019 .
    • The consumption of the top socio-economic deciles (top 10%) has stagnated.
    • Also the consumption demand of the rest of the demography ( 90%) — mostly in agriculture, small-scale manufacturing and self-employed — is not increasing due to low income growth.

    How to increase income and productivity

    • Atmanirbhar Bharat depends on improving the income and productivity of a majority of the labour force.
    • First, incentivise the farming community to shift from grain-based farming to cash crops, horticulture and livestock products.
    • Second, shift the labour force from agriculture to manufacturing.
    • India can only become self-reliant if it uses its 900 million people in the working-age population with an average age of 27 and appropriates its demographic dividend as China did.
    • That is possible if labour-intensive manufacturing takes place in a big way, creating employment opportunities for labour force with low or little skills, generating income and demand.
    • India is in a unique position at a time when all other manufacturing giants are ageing sequentially — Japan, EU, the US, and even South Korea and China.
    • Most of these countries have moved out of low-end labour-intensive manufacturing, and that space is being taken by countries like Bangladesh, Vietnam, Mexico, etc.
    • India offers the best opportunity in terms of a huge domestic market and factor endowments.

    Way forward

    • We need Indian firms to be part of the global value chain by attracting multinational enterprises and foreign investors in labour-intensive manufacturing, which will facilitate R&D, branding, exports, etc.
    • There is a need to aggressively reduce both tariffs and non-tariff barriers on imports of inputs and intermediate products.
    • Removing these barriers create a competitive manufacturing sector for Make in India, and “Assembly in India”.
    • Apart from trade reforms, further factor market reforms are required, such as rationalising punitive land acquisition clauses and rationalising labour laws, both at the Centre and state level.
    • We also have to go for large-scale vocational training from the secondary-school level, like China and other east and south-east Asian countries.

    Consider the question “Key to faster economic progress of India lies in income growth and productivity of its labour force. Suggest the ways to achieve these.”

    Conclusion

    The COVID-triggered economic crisis should lead us to create a development model that leads to opportunities for the people at the bottom of the pyramid. A competitive and open economy can ensure Atmanirbhar Bharat.

  • Atmanirbhar Bharat Abhiyan 3.0 Package

    Finance Minister has announced a fresh set of relief and stimulus measures for the economy worth ₹1.19 lakh crore, including a scheme to boost re-employment chances of formal sector employees who lost their jobs amidst the COVID-19 pandemic.

    Assist this newscard with:

    [Burning Issues] Atmanirbhar Abhiyan Package

    Atmanirbhar Bharat

    • Atmanirbhar Bharat, which translates to ‘self-reliant India’ or ‘self-sufficient India’, is the vision of our PM of making India a bigger and more important part of the global economy.
    • It doesn’t mean “self-containment”, “isolating away from the world” or being “protectionist”.
    • It calls for pursuing policies that are efficient, competitive and resilient, and being self-sustaining and self-generating.
    • The five pillars of ‘Atmanirbhar Bharat’ are stated as economy, infrastructure, technology-driven systems, vibrant demography and demand.

    Highlights of the Package 3.0

  • What is a Technical Recession?

    Latest RBI bulletin projects contraction for a second consecutive quarter, which means the economy, is in a ‘technical recession’.

    Nowcasts by RBI

    • In its latest monthly bulletin, the Reserve Bank of India has dedicated a chapter on the “State of the economy”.
    • The idea is to provide a monthly snapshot of some of the key indicators of India’s economic health.
    • As part of the exercise, the RBI has started “nowcasting” or “the prediction of the present or the very near future of the state of the economy”.
    • And the very first “nowcast” predicts that India’s economy will contract by 8.6% in the second quarter (July, August, September) of the current financial year.
    • It implies India that has entered a “technical recession” in the first half of 2020-21— for the first time in its history.

    What is a Recessionary Phase?

    • At its simplest, in any economy, a recessionary phase is the counterpart of an expansionary phase.
    • In simpler terms, when the overall output of goods and services — typically measured by the GDP — increases from one quarter (or month) to another, the economy is said to be in an expansionary phase.
    • And when the GDP contracts from one quarter to another, the economy is said to be in a recessionary phase.
    • Together, these two phases create what is called a “business cycle” in any economy. A full business cycle could last anywhere between one year and a decade.

    Now try this PYQ:

    Q.Consider the following actions by the Government:

    1. Cutting the tax rates
    2. Increasing government spending
    3. Abolishing the subsidies

    In the context of economic recession, which of the above actions can be considered a part of the “Fiscal stimulus” package?

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    How is the Recession different?

    • When a recessionary phase sustains for long enough, it is called a recession. That is, when the GDP contracts for a long enough period, the economy is said to be in a recession.
    • There is, however, no universally accepted definition of a recession — as in, for how long should the GDP contract before an economy is said to be in a recession.
    • But most economists agree with the US definition that during a recession, a significant decline in economic activity spreads across the economy and can last from a few months to more than a year.

    Then, what is a Technical Recession?

    • While the basic idea behind the term “recession” — significant contraction in economic activity — is clear, from the perspective of empirical data analysis, there are too many unanswered queries.
    • For instance, would quarterly GDP be enough to determine economic activity? Or should one look at unemployment or personal consumption as well?
    • It is entirely possible that GDP starts growing after a while but unemployment levels do not fall adequately.
    • To get around these empirical technicalities, commentators often consider a recession to be in progress when real GDP has declined for at least two consecutive quarters.
    • That is how real quarterly GDP has come to be accepted as a measure of economic activity and a “benchmark” for ascertaining a “technical recession”.

    How long do recessions last?

    • Typically, recessions last for a few quarters. If they continue for years, they are referred to as “depressions”.
    • But depression is quite rare; the last one was during the 1930s in the US.
    • In the current scenario, the key determinant for any economy to come out of recession is to control the spread of Covid-19.

  • [pib] Project-75

    The fifth Scorpene submarine of Project-75 named ‘Vagir’ has been launched at Mazagon Dock Shipbuilders Limited (MDL) in Mumbai.

    In a rare case we would see a question based on various classes of Indian Submarines in the CSP. However, we can expect a question based on Project-75 in the CSP and CAPF exam very well.

    About Vagir

    • Vagir, ex-Russia, named after the Sand Fish, a deadly deep-sea predator of the Indian Ocean, was commissioned into the Indian Navy on December 3, 1973, and was decommissioned on June 7, 2001.
    • In true nautical tradition, it is refurbished under the same name – Vagir.
    • It is rebuilt with superior stealth features (such as advanced acoustic absorption techniques, low radiated noise levels, hydro-dynamically optimized shape etc.) and precision-guided weapons.
    • The attack can be launched with both torpedoes and tube-launched anti-ship missiles, whilst underwater or on the surface.

    What is Project-75?

    • The Project 75I-class submarine is a follow-on of the Project 75 Kalvari-class submarine for the Indian Navy.
    • In the late 1990s, around the time of Kargil war, a three-decade plan took shape for indigenous construction of submarines.
    • It was known to have two separate series of submarine building lines – codenamed Project 75 and Project 75I — in collaboration with foreign entities.
    • Under this project, the Indian Navy intends to acquire six diesel-electric submarines, which will also feature advanced air-independent propulsion systems.
    • This is for enabling them to stay submerged for longer duration and substantially increase their operational range.

    Submarines commissioned till date

    • The submarines in the current Kalvari-class take their names from erstwhile decommissioned classes of submarines named Kalvari.
    • It included Kalvari, Khanderi, Karanj and Vela class — which included Vela, Vagir, Vagsheer.
    • Two submarines of the ongoing project, Kalvari and Khanderi, have been commissioned into the Indian Navy.
    • The third submarine, Karanj, is in the last phase of rigorous sea trials.
    • The fourth Scorpene, Vela, has commenced her sea trials, whilst the sixth and last submarine, Vagsheer, is being readied for boot together.

    Strategic importance of these submarines

    • India currently operates one submarine each in nuclear-powered Classes of Chakra and Arihant and in addition to 14 submarines belonging to three classes of Diesel Electric category — Kalvari, Shishumar and Sindhughosh, some of which are ageing.
    • The nuclear powered and diesel-electric submarines have their designated roles in the Carrier Battle Groups, which are formations of ships and submarines with Aircraft Carriers at the lead role.
    • As per the basic principles of submarine deployment and the minimum requirement for India to create a strategic deterrence, there is a specific number of submarines of both types that India needs to have in active service.
    • Currently, India has less number of submarines than what is required with some more of those from both types being at various stages of construction.

    Back2Basics: Classes of Submarines in India

    • In maritime terms, a class of ships is a group of vessels which have the same make, purpose and displacement.
    • In the Navy and Coast Guard in India, the ships belonging to a particular class are named in a specific manner.
    • Many times the names have the same first letters, prefixes, similar meanings or the names belong to a particular type of words for example names of cities, persons, mythological concepts, animals, rivers, mountains, weapons, etc.
    • The class is generally named after the first vessel in the category. In some cases, a particular class of vessels takes their names from an earlier class of vessels which are now decommissioned.
    • Like Kalvari – which means Tiger Shark, Vagir has been named after a Sand Fish, a predatory marine species.
    • Khanderi has been named after an Island Fort built by Chhatrapati Shivaji, which played a key role in his Navy. Karanj has also been named after an Island located South of Mumbai.

  • Species in news: Rohanixalus -the frogs of the new genus

    Indian researchers have discovered a genus of tree frog found in the Andaman Islands and the northeast.

    A stand-alone species being mentioned in the news for the first time find their way into the prelims. Make special note here. Usually, note the species and its habitat location (IUCN status if available), in the purview of a generic prelims question.

    Genus Rohanixalus

    • Named after Sri Lankan taxonomist Rohan Pethiyagoda, the frogs of the new genus Rohanixalus are characterised by a rather small and slender body (size about 2 to 3 cm long).
    • It has a pair of contrastingly coloured lateral lines on either side of the body, minute brown speckles scattered throughout the upper body surfaces, and light green coloured eggs laid in arboreal bubble-nests.
    • Based on DNA studies, the new genus is also revealed to be a distinct evolutionary lineage from all previously known tree frog genera.
    • It is the 20th recognised genus of the family Rhacophoridae that comprises 422 known Old World tree frog species found in Asia and Africa.

    Sub-species of this frog

    • There are eight frog species in this genus Rohanixalus.
    • They are known to inhabit forested as well as human-dominated landscapes right from the northeast to Myanmar, Thailand, Malaysia, Indonesia, Vietnam, Laos, and Cambodia, up to southern China.

    Unique features of this genus

    • The genus has several unique behavioural traits including maternal egg attendance where the female (mother) attends the egg clutches until hatching and assists in the release of the tadpoles into the water.
    • During the first three days after egg-laying, the female sits over the eggs and produces a gelatinous secretion with which she glazes the egg mass through the clock-wise movement of her legs.
    • This behaviour provides necessary moisture to the eggs laid on exposed leaf surfaces and protects them from insect predation.

  • Governing OTT Platforms

    In a move that will have a far-reaching impact, the Union government has brought Over The Top (OTT) platforms, or video streaming service providers under the ambit of the Ministry of Information and Broadcasting (MIB).

    Try answering this

    Q.What is Over the Top (OTT) media services? Critically analyse the benefits and challenges offered by the OTT media services in India.

    Background

    • The MIB has found a vast swathe of unregulated content, namely news online and Over the top (OTT) platforms which had escaped any architecture of regulation.
    • The print was regulated by the Press Council of India and Television, both News and Entertainment were being regulated by the Cable Networks Regulation Act (2005).
    • However, the content on online, the Government felt, fell into a black hole with no oversight.

    What are OTT Media?

    • An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet.
    • OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content.
    • The term is most synonymous with subscription-based video-on-demand (SVoD) services that offer access to film and television content.
    • They are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players, or televisions with integrated Smart TV platforms.

    Regulating OTT

    • Currently, there is no law or autonomous body governing digital content. The recent move will give the government control over OTT platforms, which were unregulated till now.
    • From time to time, the government had indicated the necessity to monitor these platforms.
    • In October 2019, the government had indicated that it will issue the “negative” list of don’ts for the video streaming services like Netflix and Hotstar.
    • It also wanted the platforms to come up with a self-regulatory body on the lines of the News Broadcasting Standards Authority.

    Self-regulation is not sufficient

    • Anticipating the government’s intervention, in January 2019, video streaming services had signed a self-regulatory code that laid down a set of guiding principles for content on these platforms.
    • The code adopted by the OTTs prohibited five types of content:
    1. Content that deliberately and maliciously disrespects the national emblem or national flag,
    2. Any visual or storyline that promotes child pornography
    3. Any content that “maliciously” intends to outrage religious sentiments
    4. Content that “deliberately and maliciously” promotes or encourages terrorism and
    5. Any content that has been banned for exhibition or distribution by law or court
    • The government had refused to support this code.

    What lies ahead?

    • The government had been giving enough hints from time to time that it wanted to regulate digital media but the exact nature of the regulation it wanted to bring was not clear.
    • The government considers digital media and digital aggregators in the same breath but they are different things.
    • It is unclear whether it is looking at licensing or entry barriers, or any other curbs in digital media.
    • However, monitoring content 24×7 has its own challenges. Whether the Ministry will set up a committee involving the public to look into complaints received remains to be seen.

  • What is the Viability Gap Funding (VGF) Scheme?

    The government has expanded the provision of financial support by means of viability gap funding for public-private partnerships (PPPs) in infrastructure projects to include critical social sector investments in sectors such as health, education, water and waste treatment.

    Note the minutes of VGF, its meaning, funding mechanism, various sectors included and its nodal ministry etc. UPSC can ask static statements based question.

    What is the move?

    • Now, under this scheme, private sector projects in areas like wastewater treatment, solid waste management, health, water supply and education, could get 30% of the total project cost from the Centre.
    • Separately, pilot projects in health and education, with at least 50% operational cost recovery, can get as much as 40% of the total project cost from the central government.
    • The Centre and States would together bear 80% of the capital cost of the project and 50% of operation and maintenance costs of such projects for the first five years.

    Viability Gap Funding (VGF) Scheme

    • Viability Gap Finance means a grant to support projects that are economically justified but not financially viable.
    • The scheme is designed as a Plan Scheme to be administered by the Ministry of Finance and amount in the budget are made on a year-to-year basis.
    • Such a grant under VGF is provided as a capital subsidy to attract the private sector players to participate in PPP projects that are otherwise financially unviable.
    • Projects may not be commercially viable because of the long gestation period and small revenue flows in future.
    • The VGF scheme was launched in 2004 to support projects that come under Public-Private Partnerships.

    Its’ funding

    • Funds for VGF will be provided from the government’s budgetary allocation. Sometimes it is also provided by the statutory authority who owns the project asset.
    • If the sponsoring Ministry/State Government/ statutory entity aims to provide assistance over and above the stipulated amount under VGF, it will be restricted to a further 20% of the total project cost.

    VGF grants

    • VGF grants will be available only for infrastructure projects where private sector sponsors are selected through a process of competitive bidding.
    • The VGF grant will be disbursed at the construction stage itself but only after the private sector developer makes the equity contribution required for the project.

  • Home Ministry amends FCRA rules

    The Ministry of Home Affairs (MHA) has relaxed FCRA norms for farmer, student, religious and other groups who are not directly aligned to any political party to receive foreign funds if the groups are not involved in “active politics”.

    Must read:

    What is Foreign Contribution (Regulation) Act, and how does it control donations?

    What is the FCRA?

    • The Foreign Contribution Regulation Act (FCRA), 2010 regulates foreign donations and ensures that such contributions do not adversely affect the internal security of our country.
    • The Act, first enacted in 1976, was amended in the year 2010 when a slew of new measures was taken by the Union Home Ministry to regulate foreign donations. It was again amended in September this year.
    • It is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    What are the new rules?

    • The new rule says- the organisations specified under clauses (v) and (vi) of sub-rule (1) shall be considered to be of political nature, if they participate in active politics or party politics, as the case may be.
    • The 2011 rules on said clauses dealt with “guidelines for the declaration of an organisation to be of a political nature, not being a political party”.
    • It said that the Central government could specify an organisation as that of political nature based on six criteria.

    Defining ‘Political group’

    • Clause V of Rule 3 (FCRA 2011) qualified a political group as, “organisations of farmers, workers, students, youths based on caste, community, religion, language or otherwise, which is not directly aligned to any political party, but whose objectives or activities, include steps towards advancement of political interests of such groups.
    • The activities include: habitually engagement in or employ common methods of political action like rasta roko, jail bharo, rail roko, bandh or hartal in support of public causes.

    Why such a move?

    • As per the FCRA, members of legislatures, political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
    • The new rules make new FCRA registrations more stringent.

  • Religious Code for Sarna Tribals

    The Jharkhand government convened a special Assembly session to pass a resolution to recognise Sarna religion and include it as a separate code in the Census of 2021.

    The Sarna Religion

    • The followers of Sarna faith believe pray to nature.
    • The holy grail of the faith is “Jal (water), Jungle (forest), Zameen (land)” and its followers pray to the trees and hills while believing in protecting the forest areas.
    • Jharkhand has 32 tribal groups of which eight are from Particularly Vulnerable Tribal Groups.
    • While many follow Hindu religion, some have converted to Christianity — this has become one of the planks of demanding a separate code “to save religious identity”— as various tribal organisations put it.

    A sacred grove is any grove of trees that are of special religious importance to a particular culture. Can you link this concept with the traditional practice of Sarna Tribals?

    Why need Sarna Code?

    • It is believed that 50 lakhs tribal in the entire country put their religion as ‘Sarna’ in the 2011 census, although it was not a code.
    • The resolution will seek a special column for followers of the Sarna religion in the Census, 2021. At present, they are not classified as a separate entity.

    Politics around the code

    • Many of the tribals who follow this faith have later converted to Christianity—the state has more than 4% Christians most of whom are tribals.
    • Some who still follow the Sarna faith believe the converted tribals are taking the benefits of reservation as a minority as well as the benefits are given to Schedule Tribes.
    • They also believe that benefits should be given specifically to them and not those who have converted.

    What sense does a separate code make?

    • The protection of their language and history is an important aspect of tribals.
    • Between 1871 and 1951, the tribals had a different code. However, it was changed around 1961-62.
    • Experts argue that when today the entire world is focusing on reducing pollution and protecting the environment, it is prudent that Sarna becomes a religious code as the soul of this religion is to protect nature and the environment.

    Back2Basics: Census of India

    • The decennial Census of India has been conducted 15 times, as of 2011.
    • While it has been undertaken every 10 years, beginning in 1872 under British Viceroy Lord Mayo, the first complete census was taken in 1881.
    • Post-1949, it has been conducted by the Registrar General and Census Commissioner of India under the Ministry of Home Affairs, Government of India.
    • All the censuses since 1951 were conducted under the 1948 Census of India Act.
    • The last census was held in 2011, whilst the next will be held in 2021.

  • State Pollution Control Boards

    The article deals with the issues faced by the State Pollution Control Boards.

    Role of CPCB and State Pollution Control Boards

    • The pollution crisis is a highly complex, multi-disciplinary issue with several contributory factors.
    • To address this crisis, India has a plethora of rules, laws and specialised agencies which, at least on paper, seem very impressive.
    • The footsoldiers of India’s battle against polluters are its officials at the state pollution control boards.
    • The Central Pollution Control Board (CPCB) based in Delhi is generally well funded and resourced, unlike the state pollution control boards (SPCBs) that are in charge of implementation of the rules that CPCB writes.

    5 issues faced by SPCBs

    1) Shortage of Staff

    • As an illustration, the Haryana State Pollution Control Board has been operating with a 70 per cent staff shortage.
    • What this means practically is that a single officer is tasked to handle the demands of pollution control for an entire district without any subordinate technical staff.
    • This comes at the cost of not being able to do inspections and other core pollution control work.

    2) Lack of specialisation

    • The officers at the SPCBs do not get to develop any specialisation.
    • The CPCB has a decent workforce and robust laboratories, where scientists once recruited get to work and excel in a particular area.
    • On the other hand, SPCBs don’t have such a stratified system, and the same officer is in charge of all these pollution categories, making it impossible to gain expertise and excel in any one area.

    3) Lack of legal skills to take on pollutors

    •  SPCBs lack the necessary legal skills to take on polluters.
    • While a legal cell may exist at the head office of a SPCB, they have few full-time public prosecutors there.
    • As a result, engineering graduates in district SPCB offices —  have to play the role of lawyers and develop legal paperwork that often falls short of holding polluters to account.
    • Clerks and superintendents at courts often refuse to file cases, pointing at flaws that someone not trained in law would naturally make.

    4) Lack of funds

    • SPCBs are chronically underfunded.
    • For instance, the funds of several SPCBs such as Haryana’s largely come from “No Objection Certificates” and “Consent to Operate” that the boards grant to industries and projects, rather than budgetary allocations by the government.
    • Owing to this, SPCB officials are unable to spend on critical functions.

    5) Additional duties

    • SPCB officials are at times given additional responsibilities that are unrelated to pollution control.
    • Haryana’s SPCB, for instance, has poultry farms under its ambit.

    Consider the question “Dealing with the crisis of air pollution need coordination at various levels and the State Pollution Control Boards play an important role in it. In light of this, examine the challenges and suggest the steps needed to empower them.”

    Conclusion

    India must empower SPCBs to act by giving them the necessary funds, human resources, tools and technologies.