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Distribution: weekly

  • Artificial intelligence technologies have a climate cost

    Context

    While there is an allure to national dreams of economic prosperity and global competitiveness, underwritten by AI, there is an environmental cost.

    Issues with AI

    • Unfair race for dominance in AI:  A few developed economies possess certain material advantages right from the start, they also set the rules.
    • They have an advantage in research and development, and possess a skilled workforce as well as wealth to invest in AI.
    • Inequality in terms of governance: We can also look at the state of inequity in AI in terms of governance: How “tech fluent” are policymakers in developing and underdeveloped countries?
    • What barriers do they face in crafting regulations and industrial policy?
    • At the same time, there is an emerging challenge at the nexus of AI and climate change that could deepen this inequity.

    Climate impact of AI

    • The climate impact of AI comes in a few forms: The energy use of training and operating large AI models is one.
    •  In 2020, digital technologies accounted for between 1.8 per cent and 6.3 per cent of global emissions.
    •  In November 2021, UNESCO adopted the  In November 2021, UNESCO adopted the Recommendation on the Ethics of Artificial Intelligence, calling on actors to “reduce the environmental impact of AI systems, including but not limited to its carbon footprint.” , calling on actors to “reduce the environmental impact of AI systems, including but not limited to its carbon footprint.”

    Inequitable access to resources

    • Both global AI governance and climate change policy (historically) are contentious, being rooted in inequitable access to resources.
    • Developing and underdeveloped countries face a challenge on two fronts:
    • 1] AI’s social and economic benefits are accruing to a few countries.
    • 2] Most of the current efforts and narratives on the relationship between AI and climate impact are being driven by the developed West.

    Way forward

    • Assess technology-led priorities: Governments of developing countries, India included, should also assess their technology-led growth priorities in the context of AI’s climate costs.
    •  It is argued that as developing nations are not plagued by legacy infrastructure it would be easier for them to “build up better”.

    Consider the question “How Artificial Intelligence technologies could transform the world as we know it? What are the concerns with it?

    Conclusion

    It may be worth thinking through what “solutions” would truly work for the unique social and economic contexts of the communities in our global village.

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  • Back in news: MGNREGA

    Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers are still waiting for almost ₹3,360 crore in pending wage payments, with the largest pending payments in West Bengal, Uttar Pradesh and Rajasthan.

    What is MGNREGA?

    • The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
    • This is labour law and social security measure that aims to guarantee the ‘Right to Work’.
    • The act was first proposed in 1991 by P.V. Narasimha Rao.

    Features of the scheme

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

     

    Tap to read more about MGNREGS:

    [Burning Issue] Reorienting MGNREGA in times of COVID

  • Places in news: Sultanpur National Park

    Homestays would soon be allowed in the villages around Sultanpur National Park in Gurugram to promote tourism and provide an opportunity for the visitors to catch a glimpse of rural life in Haryana.

    Sultanpur National Park

    • Sultanpur NP is located at Sultanpur village on Gurugram-Jhajjar highway, 15 km from Gurugram, Haryana and 50 km from Delhi.
    • It was a bird sanctuary, ideal for birding and bird lookers. Its area covers approximately 142.52 hectares.
    • Migratory birds start arriving in the park in September. Birds use the park as a resting place till the following March-April.
    • During summer and monsoon months the park is inhabited by many local bird species.
    • In April 1971, the Sultanpur Jheel inside the park (an area of 1.21 sq. km.) was accorded Sanctuary status under section 8 of the Punjab Wildlife Preservation Act of 1959.
    • The status of the park was upgraded to National Park under the Wildlife (Protection) Act, 1972 in July 1991.

    Why must we remember it?

    • It is one of the few NPs in the small state of Haryana.
    • Another NP in Haryana is Kalesar National Park.

    Important Fauna at the Park

    • Mammals: Blackbuck, Nilgai, Hog deer, Sambar, Leopard etc.
    • Birds: Siberian Cranes, Greater Flamingo, Demoiselle Crane etc.

     

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  • [Burning Issue] Russia-Ukraine Crisis

    [Burning Issue] Russia-Ukraine Crisis

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    Context

    Recently, a report stated that the tension on the Russia-Ukraine border represents a major security crisis for the region. The massive mobilization of Russian troops on the Ukraine border and occasional outbreak of violence in the contested Donbass region has pushed both countries to the brink of an open conflict.

    History of the conflict between Ukraine and Russia

    Annexation of Crimea

    • Ukraine was one of the republics within the USSR during the cold war days, and has remained a strong ally of Russia till 2013.
    • While it was planning to sign an association agreement with the European Union in 2013, Russia sternly objected to it leading to tensions.
    • Russia subsequently annexed “Crimea” (Russian speaking province in Ukraine) by force and declared its sovereignty over it with people’s support.
    • The resultant conflict has so far claimed about 10,000 lives and displaced millions with no lasting resolution in sight.

    The naval skirmish over the Sea of Azov

    • After Crimea’s annexation in 2014, Russia gained control over both sides of the Kerch strait.
    • In May 2018, Russian opened a 12-mile-long bridge over the Kerch Strait, which has also become the physical gateway to the Sea of Azov.
    • To prevent the Ukrainian boats from passing under the bridge, Russia placed a cargo ship below it.
    • Later, the Ukrainian vessels’ attempt to travel from the Black Sea to the Sea of Azov was denied by the Russian coast guard.
    • However, Ukraine insists that the patrol of the Kerch Strait was authorized under a bilateral agreement with Moscow.
    • Thus the naval skirmish over the Sea of Azov proves again the Russia’s irreversibility of its annexation of Crimea.

    Russian backed rebels

    • Russia has been criticized for its involvement in the Donetsk and Luhansk regions in eastern Ukraine.
    • There, Russian-backed separatists have been fighting with Ukrainian troops.
    • In May 2021, Moscow has allegedly deployed thousands of troops as well as tanks and artillery near Ukraine’s eastern border and has mobilized troops in the annexed Black Sea region of Crimea.
    • Current conflict – Belarus, a Russian ally was blamed for the migration crisis in the EU’s Polish border.
    • Russia flew bombers near Poland’s borders earlier this month.
    • In the Black Sea, Russian President Vladimir Putin dispatched vessels to shadow U.S. warships.

    Cause of Conflict

    (1) Shared history

    • Ukraine and Russia share hundreds of years of cultural, linguistic and familial links. 
    • As part of the Soviet Union, Ukraine was the second-most powerful Soviet republic after Russia, and was crucial strategically, economically and culturally. 

    (2) Emotional Exploitation of People

    • For many in Russia and in the ethically Russian parts of Ukraine, the shared heritage of the countries is an emotional issue that has been exploited for electoral and military purposes.

    (3) Balance of Power

    • Ever since Ukraine split from the Soviet Union, both Russia and the West have vied for greater influence in the country in order to keep the balance of power in the region in their favour.

    (4) Acts as a buffer

    • For the United States and the European Union, Ukraine is a crucial buffer between Russia and the West. 
    • As tensions with Russia rise, the US and the EU are increasingly determined to keep Ukraine away from Russian control.

    What is Euromaidan Movement?

    Origin of the movement

    • November 2013 saw the start of mass protests across Ukraine, but particularly in Kiev’s Maidan, or central square. 

    Protest

    • Protesters were angry at Ukraine’s then pro-Russia President Viktor Yanukovych’s decision to join the Russia-led Eurasian Economic Union instead of the EU. 
    • The protests, known as the Euromaidan movement, saw massive clashes between the protesters and security forces that reached their peak in February 2014 and led to the ouster of Yanukovych.

    Annexing Crimea

    • Amid fears of growing Western influence in Ukraine, Russia decided to take action by invading Crimea, which was a part of Ukraine. 
    • It also began fomenting a separatist movement in eastern Ukraine, which is home to many who are ethnically Russian.

    Result of this annexation

    • The invasion and subsequent annexation of Crimea have given Russia a maritime upper hand in the region. 
    • It also gave Russia’s President a significant boost in popularity ratings inside Russia. 

    Criticism received globally

    • It was widely condemned by world powers and resulted in the US and EU imposing sanctions on Moscow. 
    • It also resulted in a strengthened commitment by both the US and the EU to protect the integrity of Ukraine’s borders.

    Separatist Movement

    • The Donbass region (the Donetsk and Luhansk regions) of eastern Ukraine has been facing a pro-Russian separatist movement since 2014.
    • According to the Ukrainian government, the movement is actively supported by the Russian government and Russian paramilitaries make up between 15% to 80% of the separatists fighting against the Ukraine government.

    How big is the risk of invasion?

    • Russia says it has no plans to attack Ukraine.
    • But tensions are high and President Vladimir Putin has threatened “appropriate retaliatory military-technical measures” if what he calls the West’s aggressive approach continues.
    • Russia has offered no explanation for the troops posted close to Ukraine – and Russian troops and tanks have

    What are Russia’s and the West’s interests in Ukraine?

    • Ukraine and Russia share hundreds of years of cultural, linguistic and familial links.
    • As part of the Soviet Union, Ukraine was the second-most powerful Soviet republic after Russia, and was crucial strategically, economically and culturally.
    • Ever since Ukraine split from the Soviet Union, both Russia and the West have vied for greater influence in the country in order to keep the balance of power in the region in their favour.
    • For many in Russia and in the ethically Russian parts of Ukraine, the shared heritage of the countries is an emotional issue that has been exploited for electoral and military purposes.
    • For the US and the EU, Ukraine is a crucial buffer between Russia and the West. As tensions with Russia rise, the US and the EU are increasingly determined to keep Ukraine away from Russian control.
    • Efforts to induct Ukraine into NATO have been ongoing for many years and seems to have picked up pace recently.

    What does Russia want from NATO?

    • Russia do not want Ukraine to become a member of NATO.
    • Moscow accuses NATO countries of “pumping” Ukraine with weapons and the US of stoking tensions.
    • It demands no more eastward expansion and an end to NATO military activity in Eastern Europe.
    • That would mean combat units being pulled out of Poland and the Baltic republics of Estonia, Latvia and Lithuania, and no missiles deployed in countries such as Poland and Romania.
    • Russia has also proposed a treaty with the US barring nuclear weapons from being deployed beyond their national territories.
    https://www.civilsdaily.com/news/north-atlantic-treaty-organisations-nato-and-funding/

    What does Russia want with Ukraine?

    • Russia seized Crimea in 2014 arguing it had a historic claim to it.
    • Ukraine was part of the Soviet Union, which collapsed in December 1991 and Russia said it was the “disintegration of historical Russia”.
    • Russia has also become frustrated that a 2015 Minsk peace deal for eastern Ukraine is far from being fulfilled.

    Minsk Agreements

    Minsk I

    • Ukraine and the Russian-backed separatists agreed a 12-point ceasefire deal in the capital of Belarus in September 2014.
    • Its provisions included prisoner exchanges, deliveries of humanitarian aid and the withdrawal of heavy weapons.
    • The agreement quickly broke down, with violations by both sides.

    Minsk II

    • In 2015, an open conflict was averted after the ‘Minsk II’ peace agreement was signed, under the mediation of France and Germany.
    • It was designed to end the fighting in the rebel regions and hand over the border to Ukraine’s national troops.
    • It was signed by Representatives of Russia, Ukraine, the Organisation for Security and Cooperation in Europe (OSCE) and the leaders of two pro-Russian separatist regions.
    • OSCE is the world’s largest security-oriented intergovernmental organisation. Its mandate includes issues such as arms control, promotion of human rights, freedom of the press, and fair elections.

    Concerns for ‘Nord Stream 2’ gas pipeline’s future

    • The US threatened to halt the opening of a key pipeline that would send Russian gas to Western Europe, if Russia invades Ukraine.
    • Nord Stream 2 would run from Russia to Germany.

    What is Nord Stream 2?

    • The 1,225km (760-mile) pipeline took five years to build and cost $11bn (£8bn). The energy project, which would run under the Baltic Sea, is designed to double Russia’s gas exports to Germany.
    • If it comes to fruition, the pipeline will be able to pump 55 billion cubic metres of gas to Germany each year.

    So why is it so controversial?

    • The pipeline is a tool of Russian foreign policy – and there has been strong opposition from the US, Ukraine and Poland.
    • The US fears the pipeline makes Europe much more dependent on Russian energy, handing significant power over Berlin and the EU to Russian President Vladimir Putin.
    • Russia sends much of its gas to Europe through Ukraine. But Nord Stream 1 and 2 bypass the country.
    • That means that with the new pipeline Kyiv could lose out on €1.8bn in “transit” fees it earns on gas passing through its territory. Ukraine says it is being punished for its warm relations with the West.
    • Poland is unhappy about being overlooked as a transit country for Russian gas supplies into Europe.

    So what happens if it doesn’t open?

    • Europe is already grappling with soaring energy prices and lower-than-usual supplies of Russian gas.
    • Germany badly needs the pipeline’s gas. It could warm 26 million German homes and ease the nation’s transition to renewable energy.
    • But the bigger danger would come from Russia halting gas supplies from existing pipelines through Ukraine.

    India’s Stand

    • During a UNSC meeting in May 2021, India signaled its backing for traditional partner Russia on the Ukraine issue.
    • India has advocated political and diplomatic solutions that protect the legitimate interests of all countries in the region and ensure long term peace and stability in Europe and beyond.
    • The path forward can only be through peaceful dialogue for a lasting solution acceptable to all concerned.
    • Last November India voted against a Ukraine-sponsored resolution in the UN that condemned alleged human rights violations in Crimea thereby backing old ally Russia on the issue.

    Way Forward

    • Ukraine’s reluctance to implement the agreement and its growing military, economic and political ties with the West seem to have prompted Russia to put Ukraine under direct military pressure.
    • Ukraine lacks the military resources to deter its giant neighbor and there is no guarantee that the West would come to its help in the event of a Russian invasion.
    • Russia might make tactical gains from an invasion but such a move could further deteriorate its already ruptured ties with the West.
    • The practical solution is to revive the Minsk peace process.
    • The West should push both sides to resume talks and live up to their commitments as per the Minsk agreement to restore relative peace on the border.
    • International cooperation is needed to solve the ever-increasing conflict between Russia and Ukraine. Both the countries should restrain from any move leading to escalation of the tension.

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  • [Sansad TV] Perspective: Vaccine Hesitancy

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    Why in news?

    • A concern that resurfaced following the events of the past week that witnessed a high-profile legal fight in Australia over star tennis player Novak Djokovic’s vaccination status.
    • He was deported after he lost the visa battle on grounds that he was unvaccinated and did not fulfil the criteria to participate in the Australian Open tournament.

    What is Vaccine Hesitancy?

    • The reluctance of people to receive safe and recommended available vaccines is known as ‘vaccine hesitancy’.
    • This was already a growing concern before the COVID-19 pandemic.
    • A framework developed from research done in high-income countries, called ‘the 5C model of the drivers of vaccine hesitancy’, provides five main individual person–level determinants for vaccine hesitancy:
    • Confidence
    • Complacency
    • Convenience (or constraints)
    • Risk calculation
    • Collective responsibility

    A matter of debate

    • Freedom of Choice: Djokovic’s incident has brought forth different viewpoints – one which argues against vaccine mandate – saying getting vaccinated is a freedom of choice.
    • Common cause of public good: While the other point of view is that vaccination is the only and the best way to end the pandemic and the global misery it has caused.

    Questions raised by vaccine hesitancy

    1. To end the pandemic, wherein no one is safe until everyone is safe, how relevant and strong are the arguments on freedom of choice?
    2. How is the fight against this global crisis impacted when prominent personalities assert on making a choice contrary to global good?
    3. Amid the raging pandemic and the persistent threat of future waves, how can vaccine scepticism and hesitancy be addressed worldwide?

    Why is it a cause of concern?

    • Re-surging of covid cases: Amid the ongoing Omicron surge, there have been reports pointing to the unvaccinated population driving the current surge in COVID-19 cases in Europe and US.
    • Risk of future waves and danger mutations: Large scale vaccine hesitancy could drag the pandemic longer by ensuring sustained continuance of the COVID-19 diseases and emergence of newer and deadlier variants.

    Various causes for vaccine hesitancy

    • Scepticism: There are many reasons for vaccine scepticism. Vaccine hesitancy is complex and context specific varying across time, place and vaccines.
    • Fake news: The conspiracy theories on social media have brought negative publicity for vaccination. These seem to have created propaganda against the vaccines.
    • Malfunctions: The sensational highlighting of vaccine fatalities event by the media is driving vaccine hesitancy to some extent.
    • Myths and beliefs: In some places radical religious factors have driven vaccine hesitancy resulting in myth against vaccines. This is also a leading factor of prevalence of Polio in Pakistan and Afghanistan.
    • Policy fluctuations: The frequent flip-flops by governments on the vaccination issue have resulted in a low trust among the general populace regarding vaccination.
    • Public trust: Vaccine hesitancy is also influenced by factors such as complacency, convenience and confidence.

    Why nations have mandated compulsory vaccination?

    • Public threat: Reluctance for vaccination goes against another person’s right to good health given the fact that no one is safe until everyone is safe.
    • Community safeguard: Given that all humans share a common space, the decision to not get vaccinated by a section of the population would undermine the interests of others sharing the common spaces.
    • Immunization: Vaccination coverage will help boost immunity against the disease and will thus help save precious lives. It will also help reduce load on the stretched healthcare sector.
    • Controlling of future mutations: Universal vaccination will help reduce the chances of evolution of new variants and could help end the pandemic.

    Way forward

    With no “one-size-fits-all” solution to vaccine hesitancy, contextualised and curated approaches are crucial.

    • Dispelling misinformation: There is the need to dispel all misinformation – unscientific, incorrect and unsubstantiated.
    • Community engagement: The diversity of India necessitates community engagement at the local level to counter this narrative of misinformation.
    • Counselling: WHO has put forth the BeSD (behavioural and social drivers) vaccination model, which emphasises “motivation” as the vanguard of human psychology during a vaccination drive.
    • Standard safeguards: The fact that vaccines meet the necessary safety standards set by the various organizations needs to be highlighted.
    • Responsible journalism: The media should indulge in responsive reporting especially in cases involving reports of adverse events of vaccination.
    • Vaccine equality: Apart from addressing the vaccine hesitancy issue, it is also equally important to address the issue of vaccine inequity. There is the need to ensure access of affordable, quality and timely vaccines to all.
    • Highlighting success: Countries must highlight the success observed due to the vaccination programmes, wherein despite rapid rise in cases the hospitalization and death rates remain within controllable limits.

    Conclusion

    • Vaccines mitigate the chances of contracting Covid-19.
    • There is no caveat to this singular truth.
    • Thinking local and utilising established networks to create culturally resonant messages is the need of the hour to reduce vaccine hesitancy, bridge the digital divide and achieve vaccine saturation.

  • PM’s Development Initiative for North East (PM-DevINE)

    Union Budget 2022-23 provided for a new scheme, Prime Minister’s Development Initiative for North East (PM-DevINE) will be implemented through the North-Eastern Council.

    PM-DevINE

    • It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the northeast.
    • This will enable livelihood activities for youth and women, filling the gaps in various sectors.
    • While the Central Ministries may also pose their candidate projects, priority will be given to those posed by the States.

    Some of the projects to be implemented are:

    1. Dedicated Services for the Management of Paediatric and Adult Haemotolymphoid Cancers in North East India, Guwahati
    2. Construction of Aizawl bypass on western side, gap funding for passenger ropeway system for Pelling to Sanga-Choeling in West Sikkim
    3. Gap funding for eco-friendly Ropeway (Cable Car) from Dhapper to Bhaleydhunga in South Sikkim
    4. Pilot project for the construction of Bamboo Link Road at different locations in various districts in Mizoram

     

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  • What is Bomb Cyclone?

    Major cities such as New York and Boston in US are witnessing a “Bomb Cyclone” characterized by the explosive power of rapid drops in atmospheric pressure.

    What is Bomb Cyclone?

    • A bomb cyclone is a large, intense mid-latitude storm that has low pressure at its center, weather fronts and an array of associated weather, from blizzards to severe thunderstorms to heavy precipitation.
    • It becomes a bomb when its central pressure decreases very quickly—by at least 24 millibars in 24 hours.
    • When a cyclone “bombs,” or undergoes bombogenesis, this tells us that it has access to the optimal ingredients for strengthening, such as high amounts of heat, moisture and rising air.

    Why is it called a bomb?

    • Most cyclones don’t intensify rapidly in this way.
    • Bomb cyclones put forecasters on high alert, because they can produce significant harmful impacts.

    Its etymology

    • The word “bombogenesis” is a combination of cyclogenesis, which describes the formation of a cyclone or storm, and bomb, which is, well, pretty self-explanatory.
    • This can happen when a cold air mass collides with a warm air mass, such as air over warm ocean waters.
    • The formation of this rapidly strengthening weather system is a process called bombogenesis, which creates what is known as a bomb cyclone.

    How does it occur?

    • Over the warmer ocean, heat and moisture are abundant.
    • But as cool continental air moves overhead and creates a large difference in temperature, the lower atmosphere becomes unstable and buoyant.
    • Air rises, cools and condenses, forming clouds and precipitation.

    Where does it occur the most?

    • The US coast is one of the regions where bombogenesis is most common.
    • That’s because storms in the mid-latitudes – a temperate zone north of the tropics that includes the entire continental US – draw their energy from large temperature contrasts.
    • Along the US East Coast during winter, there’s a naturally potent thermal contrast between the cool land and the warm Gulf Stream current.

     

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  • Highlights of the Union Budget 2022-23

    The Union Finance Minister has tabled the Union Budget 2022-23 in Parliament today.

    What is Union Budget in India?

    • The Union Budget also referred to as the Annual Financial Statement in Article 112 of the Constitution of India is the annual budget of India.
    • The Government presents it on the first day of February so that it could be materialized before the beginning of new financial year in April.
    • Until 2016 it was presented on the last working day of February by the Finance Minister in Parliament.
    • The budget, which is presented by means of the Finance bill and the Appropriation Bill, has to be passed by Lok Sabha before it can come into effect on 1 April, the start of India’s financial year.

    Components of the Budget

    There are three major components — expenditure, receipts and deficit indicators.

    The budget is generally classified into Revenue Budget and Capital Budget.

    [A] Revenue Budget

    • It includes the government’s revenue receipts and expenditure.
    • There are two kinds of revenue receipts – tax and non-tax revenue.
    • Revenue expenditure is the expenditure incurred on day to day functioning of the government and on various services offered to citizens.
    • If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.

    [B] Capital Budget

    • It includes capital receipts and payments of the government.
    • Loans from public, foreign governments and RBI form a major part of the government’s capital receipts.
    • Capital expenditure is the expenditure on development of machinery, equipment, building, health facilities, education etc.
    • Fiscal deficit is incurred when the government’s total expenditure exceeds its total revenue. 

    What are fiscal rules and how do they affect policy?

    • Fiscal rules provide specific policy targets on the basis of which fiscal policy is formed.
    • In India’s case, its present fiscal rule is guided by the recommendations of the N.K. Singh Committee Report.
    • Allowing for some deviations under exceptional times, it has three policy targets — maintaining a specific level of debt-GDP ratio (stock target), fiscal deficit-GDP ratio (flow target) and revenue deficit-GDP ratio (composition target). 

    Highlights of the Union Budget 2022-23

    PART A

    Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:

    1. PM Gati-Shakti
    2. Inclusive Development
    3. Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action
    4. Financing of investments

    (1) PM GatiShakti

    The seven engines that drive PM Gati-Shakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure:

    1. National Highways Network to be expanded by 25000 Km in 2022-23
    2. One Station One Product concept to help local businesses & supply chains
    3. 2000 Km of railway network to be brought under Kavach, the indigenous world class technology and capacity augmentation in 2022-23
    4. 400 new generation Vande Bharat Trains to be manufactured during the next three years
    5. National Ropeways Development Program, Parvatmala to be taken up on PPP mode

    (2) Inclusive Development

    Agriculture

    • Grains Procurement
    • NABARD Loans:  To facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
    • Kisan Drones: for crop assessment, digitization of land records, spraying of insecticides and nutrients.
    • Ken Betwa project: 1400 crore outlay for implementation of the Ken – Betwa link project.

    MSME Sector

    • MSME: ECLGS to be extended up to March 2023; Udyam, e-shram, NCS and ASEEM portals to be interlinked
    • Raising and Accelerating MSME performance (RAMP) Program: with outlay of Rs 6000 Crore to be rolled out.

    Skill Development

    • Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal):  It will be launched to empower citizens to skill, reskill or upskill through on-line training.
    • Drone-As-A-Service (DrAAS):  Startups will be promoted to facilitate ‘Drone Shakti’.

    Education

    • ‘One class-One TV channel’ programme of PM eVIDYA: To be expanded to 200 TV channels.
    • Virtual labs: skilling e-labs to be set up to promote critical thinking skills and simulated learning environment.
    • High-quality e-content: It will be developed for delivery through Digital Teachers.
    • Digital University: for world-class quality universal education with personalized learning experience to be established. 

    Health

    • National Digital Health Ecosystem: An open platform to be rolled out.
    • National Tele Mental Health Programme: for quality mental health counseling and care services to be launched
    • Saksham Anganwadi: Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0

    Housing for All

    • Housing for All: Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana
    • Har Ghar, Nal Se Jal: Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under this

    Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

    •  New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
    • An initial allocation of Rs. 1,500 crore made to enable livelihood activities for youth and women under the scheme.

    Vibrant Villages Programme

    • Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

    Urban Planning

    • Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.
    • Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.

    (3) Industrial Sector

    Telecom Sector

    • Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.

    Export Promotion

    • Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

    Atmanirbharta in Defence

    • 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22 

    GIFT-IFSC

    • World-class foreign universities and institutions to be allowed in the GIFT City.

    An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence

    (4) Energy Transition and Climate Action

    • Five to seven per cent biomass pellets to be co-fired in thermal power plants
    • CO2 savings of 38 MMT annually
    • Extra income to farmers and job opportunities to locals
    • Help avoid stubble burning in agriculture fields
    • Pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry
    • Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry

    (5) Mobilizing Resources

    • Data Centres and Energy Storage Systems to be given infrastructure status.
    • Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems
    • Blended funds to be promoted for sunrise sectors
    • Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.

    Digital Rupee

    • Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.

    Providing Greater Fiscal Space to States

    • Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:

    (6) Fiscal Management

    • Budget Estimates: Rs. 34.83 lakh crore
    • Revised Estimates: Rs. 37.70 lakh crore
    • Total expenditure estimated at Rs. 39.45 lakh crore
    • Total receipts other than borrowings estimated at Rs. 22.84 lakh crore
    • Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates)

    PART B

    DIRECT & INDIRECT TAXES

    (Not necessary)

  • What is UNCITRAL Model for Cross-Border Insolvency?

    The Economic Survey 2021-22 has called for a standardized framework for cross-border insolvency as the Insolvency and Bankruptcy Code (IBC) at present does not have an instrument to restructure firms involving cross-border jurisdictions.

    What is the Insolvency and Bankruptcy Code (IBC)?

    • The IBC, 2016 is the bankruptcy law of India that seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
    • It is a one-stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement.
    • The code aims to protect the interests of small investors and make the process of doing business less cumbersome.

    Cross-border insolvency proceedings

    • Cross-border insolvency proceedings are relevant for the resolution of distressed companies with assets and liabilities across multiple jurisdictions.
    • A framework for cross border insolvency proceedings allows for:
    1. Location of such a company’s foreign assets
    2. Identification of creditors and their claims
    3. Establishing payment towards claims and
    4. Process for coordination between courts in different countries

    Current status of foreign stakeholders and courts in other jurisdictions under IBC

    • Foreign creditors can make claims against a domestic company.
    • However, the IBC currently does not allow for automatic recognition of any insolvency proceedings in other countries.
    • Current provisions do not allow Indian courts to address the issue of foreign assets of a company being subjected to parallel insolvency proceedings in other jurisdictions.

    What is the UNCITRAL Model?

    • The UNCITRAL model is the most widely accepted legal framework to deal with cross-border insolvency issues.
    • It has been adopted by 49 countries, including the UK, the US, South Africa, South Korea, and Singapore.
    • It is designed to assist States in reforming and modernizing their laws on the arbitral procedure so as to take into account the particular features and needs of international commercial arbitration.

    Key provisions

    This law works on four main principles: access, recognition, cooperation and coordination:

    1. Direct access to foreign insolvency professionals and foreign creditors to participate in or commence domestic insolvency proceedings against a defaulting debtor.
    2. Recognition of foreign proceedings & provision of remedies.
    3. Cooperation between domestic and foreign courts & domestic and foreign insolvency practitioners.
    4. Coordination between two or more concurrent insolvency proceedings in different countries: The main proceeding is determined by the concept of Centre of Main Interest (COMI).

    Implications for India

    • The framework for cross-border insolvency adopted in India may like in the case of some other countries require reciprocity from any country which seeks to have its insolvency proceedings recognised by Indian courts.
    • This would allow Indian proceedings for foreign corporate debtors to be recognised in foreign jurisdictions.

    How is IBC different from the model law?

    • Many countries that adopt the UNCITRAL model law do make certain changes to suit their domestic requirements.
    • The Indian cross-border insolvency framework excludes financial service providers from being subjected to cross-border insolvency proceedings.
    • This is because many countries exempt businesses providing critical financial services, such as banks and insurance companies, from the provisions of cross-border insolvency frameworks.

    Back2Basics: UNCITRAL

    • It is an affiliate organization to the UN made up of business and legal professionals.
    • This group develops model standards and procedures for dealing with issues affecting international business.
    • Perhaps most notably, UNCITRAL promulgated the Convention on International Sale of Goods (CISG).
    • The CISG is a model law commonly used as the governing provisions in contracts between parties from different nations.

     

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  • What is Design Linked Incentive (DLI) Scheme?

    India has invited applications from 100 domestic companies, startups, and small and medium enterprises to become a part of the design-linked incentive (DLI) scheme.

    What is the DLI scheme?

    • Aims to provide financial and infrastructural support to companies setting up fabs or semiconductor making plants in India.
    • It aims to attract existing and global players as it will support their expenditures related to design software, IP rights, development, testing, and deployment.
    • Centre for Development of Advanced Computing (CDAC), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme.

    Components of the scheme

    It has three components which are

    1. Chip Design infrastructure support: C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (viz. EDA Tools, IP Cores, and support for MPW (Multi Project Wafer fabrication) & post-silicon validation) and facilitate its access to supported companies.
    2. Product Design Linked Incentive: Reimbursement of up to 50% of the eligible expenditure subject to a ceiling of Rs. 15 Crore per application will be provided as financial support to the approved applicants who are engaged in semiconductor design.
    3. Deployment Linked Incentive: An incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of Rs. 30 Crore per application will be provided to approved applicants whose semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design are deployed in electronic products.

    Why need such a scheme?

    Ans. Growing semiconductor demand in India

    • The semiconductor industry is growing fast and can reach $1 trillion dollars in this decade. India can grow fast and reach $64 billion by 2026 from $27 billion today.
    • Mobiles, wearables, IT, and industrial components are the leading segments in the Indian semiconductor industry contributing around 80% of the revenues in 2021.
    • The mobile and wearables segment is valued at $13.8 billion and is expected to reach $31.5 billion in 2026.

    A boost to semiconductor manufacturing

    • The sudden surge in demand for chips and semiconductor components has underpinned the need to establish a robust semiconductor ecosystem in India.
    • Several sectors, including auto, telecom, and medical technology suffered due to the unexpected surge leading to the scarcity of chips manufactured by only a few countries.
    • The inception of new companies will help in meeting the demand and supply and encourage innovation in India.

    What are other countries doing to be dominant in the race of chip-making?

    • Currently, semiconductor manufacturing is dominated by companies in the U.S., Japan, South Korea, Taiwan, Israel, and the Netherlands.
    • They are also making efforts in solving the chip shortage problem.
    • The US wants to bring manufacturing back to America and reduce the country’s reliance on a small number of chipmakers based largely in Taiwan and South Korea.
    • These chipmakers produce up to 70% of the world’s semiconductors.

    Challenges in India

    • No incubation: In India, more than 90% of global companies already have their R&D and design centers for semiconductors but never established their fabrication units.
    • Strategic sector: Although India has semiconductor fabs in Mohali and Bangalore, they are purely strategic for defense and space applications only
    • Capital requirement: Setting up fabs is capital intensive and needs investment in the range of $5 billion to $10 billion.
    • Lack of supportive policies: Lack of investments and supportive government policies are some of the challenges to setting up fabs in India.
    • Geopolitical limitations: A combination of capital and the geopolitical situation comes into play to build new fabs.

    Way forward

    • Further incentivization: Schemes like the DLI are crucial to avoid high dependencies on a few countries or companies.
    • Raw material supply: Several gases and minerals which are a part of the global semiconductor supply chain are produced in India.
    • Large talent pool: Availability of highly-skilled engineers for semiconductor manufacturing.

    Conclusion

    • The 21st century will be an era of Digital revolution signifying an increased use of mobile phones and computer devices. This enhanced usage can be met only with a robust availability of semiconductor chips that sustains their functioning. Therefore India needs to focus on the indigenous development of semiconductors in order to realize its digital potential and emerge as a strong power in the present era.

     

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