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  • What self-reliant economy means?

    ‘Atma-nirbhar’ has become a buzzword after PM Modi mentioned it in his speech. This article analyses the policy statement announced by the PM that focuses on self-reliance of the country in the future.  So, what exactly the term self-reliance could include? what are the areas in which India is dependent on other economies? Read the article to know more about these issues.

    Policy statement of 1991

    • In 1991, only four policy statements were made —the end of licence-permit Raj, steep cuts in fiscal deficit and tariffs,  and devaluation of the Rupee.
    • With four policy measures, the economy was pulled out of a crisis and placed on a new growth path.
    • The key to 1991 was the political articulation of a vision that went beyond platitudes.

    What is there in the PM’s vision statement?

    • The PM’s vision statement had four elements.
    • First, a step up in public spending and investment, aimed at promoting the welfare and raising the investment rate.
    • Second, policy reforms aimed at making the domestic economy more globally competitive.
    • Third, a long-term structural shift making the economy more “self-reliant” and less dependent on the world economy.
    • The fourth wheel of this new growth engine will be Lockdown Model 4 that is to be announced in a few days.

     Commitment of political leadership: key to spending and investment

    • Increased public spending will certainly boost demand and generate employment in the short term and add to infrastructure capacity in the medium term.
    • Policy reform, including changes in land, labour and other policies, could yield results in the medium term.
    • But for now, investors will wait and watch to test the sincerity and efficiency of governments at the Centre and in the states.
    • They will wait to see how the various policy steps being announced by the FM get implemented — how quickly and how efficiently.
    • The government can meet with success if investors, consumers and other economic agents believe in the commitment of the political leadership and the capability of the administration to deliver.

    Focus on the self-reliance

    • PM has said that his version of self-reliance does not imply isolationism and inward-orientation.
    • His version of self-reliance will inject greater self-confidence in the people by reducing the country’s dependence on other nations.
    • Theotonio Dos Santos, defined dependence as a situation in which a country’s economy is “conditioned by the development and expansion of another economy”. 
    • He said that to be self-reliant the growth process of an economy “should not become dominated or dependent on another economy”.

    So, on which economies is India excessively dependent?

    • 1. The oil-exporting economies.
    • Oil and gas account for a bulk of India’s imports.
    • Whatever new sources of energy India may tap in the foreseeable future, it will remain import-dependent for energy.
    • Fortunately, for India, the global crude oil and gas markets are likely to remain buyers’ markets for some time to come.
    • 2. Dependence on foreign exchange.
    • Second is the dependence on foreign exchange inflows both in the form of remittances, mainly from the Gulf and the US, and financial flows into capital markets.
    • It is not clear how the new Modi strategy of self-reliance proposes to deal with this dependence.
    • If anything, India is seeking more FDI and external debt.
    • 3. Defence equipment.
    • The third dependence is on imported defence equipment, mainly from Russia, the US, Israel and France.
    • 4. Electronic and pharmaceuticals.
    • Fourth, import dependence in electronic goods and pharmaceuticals, mainly from China.
    • Thus far, government policy does not address these dependencies.
    • The immediate focus of PM’s self-reliance seems to be China.

    How to turn import dependence into import power?

    • Post-Deng Xiaoping China established long ago that for a large economy, it is possible to be both self-reliant and globalised at the same time.
    • Trade in itself does not create dependence if a country is able to grow both exports and imports.
    • China has demonstrated the geo-economic power of both exports and imports by making trade partners dependent on it on both counts.
    • When China refuses to buy wine and beef from Australia, it is using its import power, not demonstrating its import dependence.
    • If an economy is willing to live without those imports or can substitute them with domestic production, then it is not badly hurt.

    So, what are the lessons for India?

    • It is export dependence that can make even a large economy vulnerable.
    • It is China’s dependence on US markets that President Donald Trump has aimed to reduce by waging a trade war.
    • India has never had such export dependence on any one country.
    • Indian government’s hope that multinational companies exiting China will relocate to India can only make India more export-dependent since these MNCs aim to sell globally.
    • Making India less dependent on China cannot be the only measure of self-reliance.

    Consider the question “For India, it is not trading dependence that makes India vulnerable but the inadequacy of its human capital. Comment”

    Conclusion

    For India to be truly self-reliant and self-confident, public investment in education, human capability and research and development has to increase.

  • A plan to revive the broken economy

    The article suggests ways to revive the economy while keeping in mind the livelihood issues of the vulnerable section of society. Urgent concern should be addressed by the food and cash transfer, after that for livelihood in the rural area MGNREGA can be of great help. In the urban area, a  scheme based on the lines of MGNREGA is suggested. In the end, some ways to increase revenue are suggested.

    Food and cash transfers

    • Providing every household with ₹7,000 per month for a period of three months and every individual with 10 kg of free foodgrains per month for a period of six months is likely to cost around 3% of our GDP (assuming 20% voluntary dropout).
    • This could be financed immediately through larger borrowing by the Centre from the Reserve Bank of India.
    • The Centre should also clear outstanding Goods and Services Tax compensation.
    • Food and cash transfer are doable for the following reasons.
    • First, foodgrains are plentiful, as the Food Corporation of India had 77 million tonnes, and rabi procurement could add 40 million tonnes.
    • Second, because of the lockdown restrictions multiplier effect would be less. (so, fewer concerns about inflation)
    • Third, cash transfers in many spheres will only enable current demand to continue (such as payment of house rent to continue occupancy) and not create any fresh demand.
    • Fourth, when greater normalcy finally allows demand held back during lockdown to the surface, output could also expand because of resumed economic activity.
    • Finally, putting money in the hands of the poor is the best stimulus to an economic revival, as it creates effective demand and in local markets.
    • Hence, an immediate programme of food and cash transfers must command the highest priority.

    Need for changes in MGNREGA

    • Millions of migrant workers have gone back home, and are unlikely to return to towns in the foreseeable future.
    • Employment has to be provided to them where they are, for which the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) must be expanded greatly and revamped with wage arrears paid immediately.
    • The 100-day limit per household has to go.
    • Work has to be provided on demand without any limit to all adults.
    • And permissible work must include not just agricultural and construction work, but work in rural enterprises and in care activities too.
    • The revamped MGNREGS could cover wage bills of rural enterprises started by panchayats, along with those of existing rural enterprises, until they can stand on their own feet.
    • This can be an alternative strategy of development, recalling the successful experience of China’s Township and Village Enterprises (TVEs).
    • Public banks could provide credit to such panchayat-owned enterprises and also assume a nurturing role vis-à-vis them.
    • Pandemic highlighted unsustainability of the earlier globalisation.
    • Which means that growth in India in the coming days will have to be sustained by the home market.
    • Since the most important determinant of growth of the home market is agricultural growth, this must be urgently boosted.
    • The MGNREGS can be used for this, paying wages for land development and farm work for small and medium farmers.
    • Also the government support through remunerative procurement prices, subsidised institutional credit, other input subsidies, and redistribution of unused land with plantations is possible.
    • Agricultural growth in turn can promote rural enterprises, both by creating a demand for their products and by providing inputs for them to process.
    • Both these activities would generate substantial rural employment.

    Focus on urban area

    • In urban areas, it is absolutely essential to revive the Micro, Small and Medium Enterprises (MSMEs).
    • Simultaneously, the vast numbers of workers who have stayed on in towns have to be provided with employment and income after our proposed cash transfers run out.
    • The best way to overcome both problems would be to introduce an Urban Employment Guarantee Programme, to serve diverse groups of the urban unemployed, including the educated unemployed.
    • Urban local bodies must take charge of this programme and would need to be revamped for this purpose.
    • “Permissible” work under this programme should include, for the present, work in the MSMEs.
    • This would ensure labour supply for the MSMEs and also cover their wage bills at the central government’s expense until they re-acquire robustness.
    • It should imaginatively also include care work, including of old, disabled and ailing persons, educational activities, and ensuring public services in slums.

    The CARE economy: Public health, education, employment

    • The pandemic has underscored the extreme importance of a public health-care system, and the folly of privatisation of essential services.
    • The post-pandemic period must see significant increases in public expenditure on education and health, especially primary and secondary health including for the urban and rural poor.
    • The “care economy” provides immense scope for increasing employment.
    • Vacancies in public employment, especially in such activities, must be immediately filled.
    • Anganwadi and Accredited Social Health Activists/workers who provide essential services to the population, including during this pandemic, are paid a pittance and treated with extreme unfairness.
    • We must improve their status, treat them as regular government employees and give them proper remuneration and associated benefits, and greatly expand their coverage in settlements of the urban poor.
    • These could easily come within the total package announced by the Prime Minister, which could be financed by printing money.
    • But in the medium term, public revenues must be increased.
    • This is not because there is a shortage of real resources which, therefore, has to be taken from other existing uses through taxation.
    • Rather, since much-unutilised capacity exists in the economy, the shortage is not of real resources; the government has to just get command over them.

    Suggestions to increase public revenue

    • A combination of wealth and inheritance taxation and getting multinational companies to pay the same effective rate as local companies through a system of unitary taxation will garner substantial public revenue.
    • They will also reduce wealth and income inequalities which have become horrendous.
    • A 2% wealth tax on the top 1% of the population, together with a 33% inheritance tax on the wealth they bequeath every year to their progeny, could finance an increase in government expenditure to the tune of 10% of GDP.
    • It would be argued that this might cause large financial outflows, which the country can ill-afford.
    • Contrarily, even foreign capital is more likely to be attracted to a growing economy than one in sharp decline because of a lack of stimulus.
    • Also, a fresh issue of special drawing rights by the International Monetary Fund which India has surprisingly opposed along with the United States would provide additional external resources.
    • These additional resources, would suffice to finance the institution of five universal, justiciable, fundamental economic rights:1) the right to food, 2)the right to employment, 3)the right to free public health care, 4)the right to free public education and 5)the right to a living old-age pension and disability benefits.

    Consider the question, “The economic disruption caused by the pandemic threatens the progress made on the front of inclusive growth. Suggest the measures to ensure the livelihood of the economically vulnerable section of the society in the aftermath of the pandemic in rural and urban areas.”

    Conclusion

    The broken economy must be rebuilt in ways to ensure a life of dignity to the most disadvantaged citizen. The ways suggested here shows how to achieve that.

  • Global Nutrition Report, 2020

    The Global Nutrition Report 2020 has stated that India is among 88 countries that are likely to miss global nutrition targets by 2025.

    UPSC may puzzle you by asking a prelim question like-

    With reference to the Global Nutrition Report, which of the following is/are a Global Nutrition Targets?

    Visit this link for more graphics related to India: https://globalnutritionreport.org/resources/nutrition-profiles/asia/southern-asia/india/

    About the Global Nutrition Report

    • The GNR is a report card on the world’s nutrition—globally, regionally, and country by country—and on efforts to improve it.
    • It is an independently produced annual stock-take of the state of the world’s nutrition. It is a multi-stakeholder initiative, consisting of a Stakeholder Group, Independent Expert Group and Report Secretariat.
    • It was conceived following the first Nutrition for Growth Initiative Summit (N4G) in 2013 and was first published in 2014.
    • The report tracks global nutrition targets on maternal, infant and young child nutrition and on diet-related Non-Communicable Diseases adopted by member states of the WHO as well as governments’ delivery against their commitments.

    India would miss the targets

    • According to the Global Nutrition Report 2020, India will miss targets for all four nutritional indicators for which there is data available, i.e.

    1) Stunting among under-5 children,

    2) Anaemia among women of reproductive age,

    3) Childhood overweight and

    4) Exclusive breastfeeding

    What are Global nutrition targets?

    • In 2012, the World Health Assembly identified six nutrition targets for maternal, infant and young child nutrition to be met by 2025. They are:

    1) Reducing stunting by 40% in children under 5 years age

    2) Reducing anaemia by 50% among women in the age group of 19-49 years

    3) Ensuring a 30% reduction in low-birth-weight

    4) Ensuring no increase in childhood overweight,

    5) Increasing the rate of exclusive breastfeeding in the first six months up to at least 50% and

    6) Reducing and maintaining childhood wasting to less than 5%.

    Data on Underweight children

    • Between 2000 and 2016, rates of underweight have decreased from 66.0% to 58.1% for boys and 54.2% to 50.1% in girls.
    • However, this is still high compared to the average of 35.6% for boys and 31.8% for girls in Asia.
    • In addition, 37.9% of children fewer than 5 years are stunted and 20.8% are wasted, compared to the Asia average of 22.7% and 9.4% respectively.
    • One in two women of reproductive age is anaemic, while at the same time the rate of overweight and obesity continues to rise, affecting almost a fifth of the adults, at 21.6% of women and 17.8% of men.

    Data about India

    • Stunting and wasting among children

      • Data: 37.9% of children under 5 years are stunted and 20.8% are wasted, compared to the Asia average of 22.7% and 9.4% respectively. 
    •  Inequity:
        • India is identified as among the three worst countries, along with Nigeria and Indonesia, for steep within-country disparities in stunting, where the levels varied four-fold across communities.
        • For example, Stunting level in Uttar Pradesh is over 40% and their rate among individuals in the lowest income group is more than double those in the highest income group at 22.0% and 50.7%, respectively.
        • In addition, stunting prevalence is 10.1% higher in rural areas compared to urban areas.
    • Overweight and Obesity
      • Data: Rate of overweight and obesity continues to rise, affecting almost a fifth of the adults, at 21.6% of women and 17.8% of men.
      • Inequity: There are nearly double as many obese adult females than there are males (5.1% compared to 2.7%).
    • Anaemia
      • One in two women of reproductive age is anaemic.

    Inequities in Malnutrition

    • The report emphasises on the link between malnutrition and different forms of inequity, such as those based on geographic location, age, gender, ethnicity, education and wealth malnutrition in all its forms.
    • Inequity is a cause of malnutrition — both under-nutrition and overweight, obesity and other diet-related chronic diseases.
    • Inequities in food and health systems exacerbate inequalities in nutrition outcomes that in turn can lead to more inequity, perpetuating a vicious cycle, says the report.

  • What are Integrated Battle Groups (IBG)?

    The Army’s new concept of agile Integrated Battle Groups (IBG) as part of the overall force transformation will be operationalised very soon, confirmed Army Chief.

    Practice question for mains:

    The deployment of Integrated Battle Groups (IBG) is necessary for counter-insurgency operations across the terror hit borders of India. Discuss.

    What are IBGs?

    • IBGs are brigade-sized, agile, self-sufficient combat formations, which can swiftly launch strikes against an adversary in case of hostilities.
    • Each IBG would be tailor-made based on Threat, Terrain and Task and resources will be allotted based on the three Ts.
    • They need to be light so they will be low on logistics and they will be able to mobilise within 12-48 hrs based on the location.
    • An IBG operating in a desert needs to be constituted differently from an IBG operating in the mountains.
    • The key corps of the Army is likely to be reorganized into 1-3 IBGs.

    Objective of IBG

    • Holistic integration to enhance the operational and functional efficiency, optimize budget expenditure, facilitate force modernization and address aspirations

    Structure

    • While a command is the largest static formation of the Army spread across defined geography, a corps is the largest mobile formation.
    • Typically each corps has about three brigades.
    • The idea is to reorganise them into IBGs which are brigade-sized units but have all the essential elements like infantry, armoured, artillery and air defence embedded together based on the three Ts.
    • The IBGs will also be defensive and offensive. While the offensive IBGs would quickly mobilise and make a thrust into enemy territory for strikes, defensive IBGs would hold ground at vulnerable points or where enemy action is expected.

    Why need IBGs?

    • After the terrorist attack on the Parliament, the Indian military undertook massive mobilization but the Army’s formations which deep inside took weeks to mobilise losing the element of surprise.
    • Following this, the Army formulated a proactive doctrine known as ‘Cold Start’ to launch swift offensive but its existence was consistently denied in the past.
    • Its existence was acknowledged for the first time by Gen Rawat in January 2017.

  • JDY or NREGA card: What is better option for cash transfers?

    JAM Trinity is one of the flagship policy of the government. In times of COVID crisis, this article highlights some limits of JAM trinity. Issues of inclusion error, exclusion error and even problem of transparency with JAM accounts are discussed. The NREGA cards instead of Jan Dhan account is suggested as the better option. Why is it so? Read to know more…

    High hopes from JAM

    • The original formulation, in 2015, mentioned two possible forms of the JAM trinity: mobile banking and post office payments.
    • The second option never made much progress.
    • So, Aadhaar-enabled mobile banking became the supreme goal.
    • In January 2017, NITI Aayog CEO Amitabh Kant predicted the imminent demise of all cash-transfer paraphernalia other than mobiles.
    • These hopes reached new heights as the JAM project latched on to another flourishing narrative, universal basic income (UBI).
    • If you want to make cash transfers to everyone, what better platform can you have than Aadhaar, India’s unique biometric ID, doubling up as a permanent financial address?

    Corona crisis belied the hopes from JAM

    • In the early days of the crisis, JAM was often invoked sometimes along with UBI as a possible tool of emergency relief.
    • But when the time actually came to make cash transfers to the poor, JAM turned out to be of little use.
    • The JAM had not gone beyond some fancy digital-payment systems for the privileged.
    • Poor people were still running from pillar to post to collect their meagre benefits from old-fashioned bank accounts.
    • Some also use the services of “business correspondents”, but those have little to do with JAM.
    • Sure enough, long bank queues and related hardships started to emerge, especially in rural areas where the density of banks is relatively low.
    • In a Dalberg survey conducted last month in 10 states, only 25% of poor households reported that it was “easy” to access cash benefits.

    NREGA job Cards: A better option than Jan Dhan Account

    • The lead cash-relief measure in the national relief package consists of monthly transfers of ₹500 to women’s JDY accounts.
    • But is that a good idea?
    • Let’s compare women’s JDY accounts with another possible basis for cash transfers, at least in rural areas: the list of households that have a National Rural Employment Guarantee Act (NREGA) job card.
    • The numbers of accounts are roughly comparable: about 14 crore for NREGA job cards, and 12 crore or so for women’s JDY accounts in rural and semi-urban.

    JDY approach fares poorly on the following 3 counts

    1. Lack of transparency and clarity

    • JDY accounts are a mighty mess – the NREGA job-cards list is far more transparent and well-organised. 
    • During the frantic initial JDY wave, in 2014-15, banks opened JDY accounts en masse to meet the targets. Banking norms were not followed always.
    • Later on, a large proportion of JDY accounts – 40% in March 2017, down to 19% in January 2020– went “dormant” as customers were unable or unwilling to use them.

    2. Large exclusion error

    • The cash transfers to women’s JDY accounts are likely to involve large exclusion errors.
    • According to a recent Yale study, less than half of poor adult women have a JDY account, an even lower proportion, 21%, know that they have a JDY account.
    • The NREGA job-card list is likely to have much better coverage of poor households.
    • The natural complementarity between NREGA and social security pensions covering more than four crore persons under the National Social Assistance Programme alone would further help to reduce exclusion errors.

    3. Large inclusion error

    • Inclusion errors are also likely to be larger in the JDY approach.
    • Job cards are meant for rural workers, JDY accounts are for everyone.
    • National Election Studies 2019 data show that JDY beneficiaries tend to be better-off than NREGA beneficiaries. ( and still, they would get benefits i.e. inclusion error)
    • Earlier survey data suggest that the probability of having a JDY account is more or less the same for poor and non-poor households.

    Comparison on reliability basis

    • There have been significant issues e.g. delayed, rejected, blocked or diverted payments with NREGA payments, often related to Aadhaar.
    • But then, numerous “direct benefit transfer” schemes –social security pensions, scholarships, maternity benefits, among others have faced similar problems, also reflected in official transaction data.
    • Both the Aadhaar Payment Bridge System(APBS) and the Aadhaar-enabled Payment System (AePS) are shot through with technical glitches.
    • Transfers to women’s JDY accounts are unlikely to be more reliable than transfers to job-card holders.

    Cash in hand option

    • As far as effective payment is concerned, there is a further argument in favour of the NREGA job-cards list.
    • Unlike JDY accounts, it lends itself to the “cash-in-hand” method on-the-spot payment in cash, instead of bank payments as a possible fallback.
    • The reason is that the job-cards list is a transparent, recursive household list with village and gram panchayat identifiers, while the list of JDY accounts is an opaque list of individual bank accounts.
    • Cash-in-hand may seem like the antithesis of JAM, but this option may become important in the near future if the banking system comes under further stress.
    • There are precedents of effective use of the cash-in-hand method, notably in Odisha for pension payments, and in various states for NREGA wage payments.
    • Several states including Andhra Pradesh, Odisha and Tamil Nadu have already resorted to cash-in-hand for relief payments during the lockdown.

    Consider the question, ” The need for financial inclusion is far more in times of corona crisis. Discuss opportunities and challenges with respect to policies like JAM trinity during corona pandemic. Suggest other alternatives for such transfers.”

    Conclusion

    There is nothing compelling about the use of women’s JDY accounts for cash relief. In fact, it is a bit of a shot in the dark. The government do well to consider other options for further relief majors, including a switch to the NREGA job-cards list in rural areas.

  • India-Nepal dispute over Kalapani Region

    Nepal has protested against India’s inauguration of a Himalayan link road built in a disputed territory which falls at a strategic three-way junction with Tibet and China. Kathmandu claims the highly strategic areas of Limpiyadhura and Kalapani, although Indian troops have been deployed there since the 1962 war.

    Practice question for mains:

    Q. The India-Nepal bilateral relations these days are increasingly seen through the lens of China factor. Examine.

    Kalapani Region

    • Mapped within Uttarakhand is a 372-sq km area called Kalapani, bordering far-west Nepal and Tibet.
    • A treaty signed between Nepal and British India in 1816 determined the Makhali river, that runs through Kalapani, as the boundary between the two neighbours.
    • The Treaty of Sugauli concluded between British India and the Kingdom of Nepal in the year 1816, maps the Makhali river as the western boundary with India but different British maps showed the source of the tributary at different places which was mainly due to underdeveloped and less-defined surveying techniques used at that time.
    • However, the river has many tributaries that meet at Kalapani. For this reason, India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.
    • While the Nepal government and political parties have protested, India has said the new map does not revise the existing boundary with Nepal.
    • India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.

    Legal Dimension of Issue

    According to International Laws, the principles of avulsion and accretion are applicable in determining the borders when a boundary river changes course.

    • Avulsion: It is the pushing back of the shoreline by sudden, violent action of the elements, perceptible while in progress. Also it can be defined as the sudden and perceptible change in the land brought about by water, which may result in the addition or removal of land from a bank or shoreline.
    • Accretion: It is the process of growth or enlargement by a gradual buildup. It is the natural, slow and gradual deposit of soil by the water.

    If the change of the river course is rapid – by avulsion – the boundary does not change. But if the river changes course gradually – that is, by accretion – the boundary changes accordingly.

    Since, the Gandak change of course has been gradual, India claimed Susta as part of their territory as per international laws.

    • On several occasions, India has tried to resolve the issue through friendly and peaceful negotiations, but the Nepali leadership has always shown hesitation in resolving the issue.
    • In Nepal, the issue has become a tool for arousing strong public sentiment against India. Therefore, resolving the issue may not be in the best interest of Nepal’s domestic politics.

    Significance for India

    • The Lipu Lekh pass serves strategic importance for India as a key point to monitor Chinese troop movement.
    • The link road via Lipulekh Himalayan Pass is also considered one of the shortest and most feasible trade routes between India and China.
    • The Nepalese reaction would probably have triggered in response to Chinese assertion.

    An undefined boundary claimed by Nepal

    • Nepal’s western boundary with India was marked out in the Treaty of Sugauli between the East India Company and Nepal in 1816.
    • Nepali authorities claim that people living in the low-density area were included in the Census of Nepal until 58 years ago.
    • Five years ago, Nepali Foreign Minister Mahendra Bahadur Pande claimed that the late King Mahendra had “handed over the territory to India”.
    • By some accounts in Nepal, this allegedly took place in the wake of India-China War of 1962.

    Treaty of Saguali

  • GI tag for Sohrai Khovar painting, Telia Rumal

    Jharkhand’s Sohrai Khovar painting and Telangana’s Telia Rumal were given the Geographical Indication (GI) tag by the Geographical Indications Registry.

    This year, many GI tags have been allocated. A few of them to count are- Kashmir saffron, Manipur black rice, Gorakhpur terracotta, Kovilpatti kadalai mittai etc.  Check here for more.

    Sohrai Khovar painting

    • The Sohrai Khovar painting is a traditional and ritualistic mural art being practised by local tribal women in the area of Hazaribagh district of Jharkhand.
    • The painting is primarily being practised only in the district of Hazaribagh. However, in recent years, for promotional purposes, it has been seen in other parts of Jharkhand.
    • It is prepared during local harvest and marriage seasons using local, naturally available soils of different colours in the area.
    • Traditionally painted on the walls of mud houses, they are now seen on other surfaces, too.
    • The style features a profusion of lines, dots, animal figures and plants, often representing religious iconography.
    • In recent years, the walls of important public places in Jharkhand, such as the Birsa Munda Airport in Ranchi, and the Hazaribagh and Tatanagar Railway Stations, among others, have been decorated with these paintings.

    Telia Rumal

    • Telia Rumal cloth involves intricate handmade work with cotton loom displaying a variety of designs and motifs in three particular colours — red, black and white.
    • The Rumal can only be created using the traditional handloom process and not by any other mechanical means as otherwise, the very quality of the Rumal would be lost.
    • During the Nizam’s dynasty, Puttapaka, a small, backward village of the Telangana region of Andhra Pradesh had about 20 families engaged in handloom weaving, who were patronized by rich families and the Nizam rulers.
    • The officers working in the court of the Nizam would wear the Chituki Telia Rumal as a symbolic representation of status.
    • Telia Rumals were worn as a veil by princesses at the erstwhile court of the Nizam of Hyderabad, and as a turban cloth by Arabs in the Middle East.

    Back2Basics: Geographical Indications in India

    • A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
    • This tag is valid for a period of 10 years following which it can be renewed.
    • Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
    • The first product to get a GI tag in India was the Darjeeling tea in 2004.
    • The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for protection of GI in India.
    • India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
    • Geographical Indications protection is granted through the TRIPS Agreement.

  • [pib] Atmanirbhar Bharat Abhiyan (Self-reliant India Mission)

    The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.

    Try a question:

    ‘Doubling Farmer’s Income’ and ‘USD 5 trillion economy’  seems more like slogans today in wake of COVID pandemic. Comment on the statement with keeping in view the Atmanirbhar Bharat Abhiyan of the government.

    Atmanirbhar Bharat: With a special package

    • PM has announced a special economic package and gave a clarion call for Self-reliant India.
    • The package will provide a much-needed boost towards achieving self-reliance.
    • This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
    • The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

    Five pillars of a self-reliant India

    PM iterated that a self-reliant India will stand on five pillars viz.

    1) Economy, which brings in quantum jump and not incremental change

    2) Infrastructure, which should become the identity of India

    3) System, based on 21st-century technology-driven arrangements

    4) Vibrant Demography, which is our source of energy for a self-reliant India and

    5) Demand, whereby the strength of our demand and supply chain should be utilized to full capacity

    Is this a new package?

    • The PM did not give the details, but he specified that this calculation of Rs 20 lakh crore includes what the government has already announced and the steps taken by the RBI.
    • This means the total amount of additional money — that is over and above what the government would have spent even in the absence of a Covid crisis — will not be Rs 20 lakh crore.
    • It would be substantially less.

    Why?

    • That’s because the PM has included the actions of RBI, India’s central bank, as part of the government’s “fiscal” package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy).
    • Government expenditure and RBI’s actions are neither the same nor can they be added in this manner.

    What did the RBI provide earlier?

    • A rough estimate suggests that the RBI’s decisions have provided additional liquidity of Rs 5-6 lakh crore since the start of the Covid-19 crisis.
    • Add this to the Rs 1.7 lakh crore of the first fiscal relief package announced by the Centre on March 26. Together, the two already account for 40 per cent of the Rs 20-lakh crore package.
    • That leaves an effective amount of Rs 12 lakh crore.
    • However, if the government is including RBI’s liquidity decisions in the calculation, then the actual fresh spending by the government could be considerably lower than Rs 12 lakh crore.
    • That’s because RBI has been coming out with long term bond-buying operations (long term repo operation or LTRO, to infuse liquidity into the banking system) worth Rs 1 lakh crore at a time.
    • If for argument’s sake, RBI comes out with another LTRO of Rs 1 lakh crore, then the overall fiscal help falls by the same amount.

    Why shouldn’t RBI’s package be included in the overall package?

    • That is because direct expenditure by a government — either by way of wage subsidy or direct benefit transfer or any, immediately and necessarily stimulates the economy.
    • In other words, that money necessarily reaches the people — either as someone’s salary or someone’s purchase.
    • But credit easing by the RBI — that is, making more money available to the banks so that they can lend to the broader economy — is not like government expenditure.
    • That’s because, especially in times of crisis, banks may take that money from RBI and elsewhere and, instead of lending it, park it back with the RBI.

    Back2Basics: Long Term Repo Operations (LTRO)

    • The LTRO is a tool under which the RBI provides 1-3 year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
    • Funds through LTRO are provided at the repo rate.
    • But usually, loans with higher maturity period (here like 1 year and 3 years) will have a higher interest rate compared to short term (repo) loans.
    • According to the RBI, the LTRO scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) operations.
    • The LAF and MSF are the two sets of liquidity operations by the RBI with the LAF having a number of tools like repo, reverse repo, term repo etc.

    What are Repo and Reverse Repo rates?

    • The repo rate is the rate at which the RBI lends money to the banking system (or banks) for short durations.
    • The reverse repo rate is the rate at which banks can park their money with the RBI.
    • With both kinds of the repo, which is short for repurchase agreement, transactions happen via bonds — one party sells bonds to the other with the promise to buy them back (or repurchase them) at a later specified date.
    • In a growing economy, commercial banks need funds to lend to businesses.
    • One source of funds for such lending is the money they receive from common people who maintain savings deposits with the banks. Repo is another option.

  • [pib] CHAMPIONS Portal for Indian MSMEs

    In a major initiative, Union Ministry of MSME has launched CHAMPIONS portal for assisting Indian MSMEs march into the big league as National and Global Champions.

    MSME sector has been hit badly by COVID. Initiatives like CHAMPIONS portal are crucial for this sector.

    CHAMPIONS Portal

    • ‘CHAMPIONS’ is a technology-driven Control Room-Cum-Management Information System.
    • The CHAMPIONS is an acronym for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength
    • As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.
    • It is a technology-packed control room-cum-management information system.

    Three basic objectives of the CHAMPIONS

    1) How to help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.

    2) How to help them capture new opportunities like manufacturing of medical accessories and products like PPEs, masks, etc.

    3) How to identify the sparks, i.e., the bright MSMEs who can not only withstand but can also become national and international champions.

    Technology imbibed in the portal

    • In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning.
    • It is also fully integrated on a real-time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web-based mechanisms.
    • The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of the ministry’s dumping rooms in record time.

     A hub and spoke model of network

    • As part of the system, a network of control rooms is created in a Hub & Spoke Model.
    • The Hub is situated in New Delhi in the Secretary MSME’s office.
    • The spokes will be in the States in various offices and institutions of Ministry.
    • As of now, 66 state-level control rooms are created as part of the system.

  • What is the Sample Registration System (SRS)?

    The Registrar General of India released its Sample Registration System (SRS) bulletin based on data collected for 2018.

    Since we are talking about birth rates and death rates, how about revising Demographic Transition Model. Can you recall 4 distinctive stages of Indian Demographic history?

    Sample Registration System (SRS)

    • The SRS is a demographic survey for providing reliable annual estimates of infant mortality rate, birth rate, death rate and other fertility and mortality indicators at the national and sub-national levels.
    • Initiated on a pilot basis by the Registrar General of India in a few states in 1964-65, it became fully operational during 1969-70.
    • The field investigation consists of a continuous enumeration of births and deaths in selected sample units by resident part-time enumerators, generally Anganwadi workers and teachers; and an independent retrospective survey every six months by SRS supervisors.
    • The data obtained by these two independent functionaries are matched.

    Highlights of the data

    Birth and death rates

    • According to the data released the national birth rate in 2018 stood at 20, and death and infant mortality rates stood at 6.2 and 32, respectively.
    • The rates are calculated per one thousand of the population.
    • Madhya Pradesh has the worst infant mortality rate in the country while Nagaland has the best.
    • Chhattisgarh has the highest death rate, while Delhi has the lowest.
    • Bihar continues to remain at the top of the list in the birth rate while Andaman and Nicobar are at the bottom.

    Infant mortality

    • The data shows that against the national infant mortality rate (IMR) of 32, Madhya Pradesh has an IMR of 48 and Nagaland 4.
    • Bihar has the highest birth rate at 26.2 and Andaman and Nicobar Islands has a birth rate of 11.2.
    • Chhattisgarh has the highest death rate at 8 and Delhi, an almost entirely urban state, has a rate of 3.3, indicating better healthcare facilities.
    • As far as IMR is concerned, the present figure of 32 is about one-fourth as compared to 1971 (129).
    • In the last 10 years, IMR has witnessed a decline of about 35 per cent in rural areas and about 32 per cent in urban areas. T

    Birth rate

    • The birth rate is a crude measure of fertility of a population and a crucial determinant of population growth.
    • India’s birth rate has declined drastically over the last four decades from 36.9 in 1971 to 20.0 in 2018.
    • The rural-urban differential has also narrowed. However, the birth rate has continued to be higher in rural areas compared to urban areas in the last four decades.
    • There has been about an 11 per cent decline in the birth rate in the last decade, from 22.5 in 2009 to 20.0 in 2018. The corresponding decline in rural areas is 24.1 to 21.6, and in urban areas, it is 18.3 to 16.7.