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GS Paper: GS3

  • Railways plans to develop multi-modal transport hubs

    Why in the news? 

    • The Indian Railways will create mega railway terminals with multi-modal connectivity in aspirational cities with a population of more than 10 lakh across the country.

    About the ‘Viksit Bharat’ Initiative – 

    • The program is part of the infrastructure being developed for Prime Minister Narendra Modi’s ‘Viksit Bharat’ initiative
    • Viksit Bharat 2047 is the vision to transform India into a developed nation by 2047, the 100th year of independence.
    • This vision encompasses various facets of development, such as economic growth, environmental sustainability, social progress, and good governance, to make India a developed nation by 2047.

    Key Provisions as per Railways Plans-

    • Inclusivity and Expansion: The initiative aims to be inclusive by considering inputs from stakeholders and has a vision for expansion beyond its initial parameters to cater to the needs of densely populated areas.
      • The Railway Ministry is actively working on improving the passenger experience in a mission mode, indicating a focused and accelerated effort in this regard.
      • Efforts are being made to improve the cleanliness of coaches and maintain proper amenities on railway premises to enhance the overall travel experience for passengers.
    • Zero Tolerance Policy: The Ministry has issued a warning that any laxity on the part of senior officers will not be tolerated, emphasizing the importance of accountability and responsibility in ensuring passenger satisfaction.
    • Quality check and Monitoring: Principal Chief Mechanical Engineers (PCMEs) of Zonal Railways have been instructed to closely monitor and ensure sustained housekeeping and maintenance activities, indicating a hands-on approach to implementing these improvements.

    Implementing the initiatives outlined could face several challenges:

    • Resource Constraints: Adequate funding, manpower, and infrastructure might be lacking, especially for initiatives that require significant investment in upgrading facilities and maintaining cleanliness.
    • Resistance to Change: Resistance from existing systems, bureaucracy, and resistance to change among stakeholders could impede the implementation of new initiatives.
    • Coordination Issues: Effective coordination among various departments and agencies involved in railway operations may be challenging, leading to delays or inefficiencies in implementation.
    • Technical Challenges: Addressing technical issues related to rolling stock maintenance, cleanliness, and passenger amenities may require specialized expertise and resources.
    • Operational challenges: The vast scale of railway operations across the country presents logistical challenges in ensuring uniform implementation of initiatives and maintaining standards consistently.
    • Training and Capacity Building: Providing adequate training and capacity building for staff involved in implementing and maintaining the initiatives may be necessary but could also be challenging to execute effectively.

    To address the challenges mentioned, several measures can be taken:

    • Resource Mobilization: Explore alternative sources of funding such as public-private partnerships (PPPs), seek investment from international organizations, and allocate budgetary resources efficiently.
    • Capacity Building: Invest in training programs, workshops, and skill development initiatives to enhance the capabilities of staff involved in implementing and maintaining the initiatives.
    • Technology Adoption: Embrace technological solutions such as automated maintenance systems, real-time monitoring tools, and digital platforms to improve efficiency, accuracy, and transparency in operations.
    • Stakeholder Engagement and Communication: Conduct extensive stakeholder consultations to garner support for initiatives, communicate the benefits clearly, and create awareness about the need for change.
      • Simplify bureaucratic procedures, delegate decision-making authority where appropriate, and establish clear accountability mechanisms to facilitate faster implementation.

    Conclusion

    • Indian Railways’ mega terminals aim to transform connectivity in aspirational cities. Challenges like resource constraints and resistance necessitate measures like stakeholder engagement, technology adoption, and streamlined processes for successful implementation.

  • India ranks 134th in global human development index, says UNDP report

    Why in the news? 

    Recently, India’s progress in the global Human Development Index (HDI), as reported by the United Nations Development Programme (UNDP)

    Context-

    • India’s ranking on the United Nations Human Development Index (HDI) improved by one position in 2022 to 134 out of 193 countries compared to 135 out of 191 countries in 2021. Switzerland has been ranked number one.

    The Human Development Index (HDI)-

    About 

    The Human Development Index (HDI), initially introduced by the UNDP in 1990, is a statistical composite index. It measures a country’s average achievement across three fundamental dimensions:

    • Health: This dimension is represented by life expectancy at birth. It reflects the overall health and well-being of the population and their access to healthcare services.
    • Education: This dimension includes indicators such as expected years of schooling for children entering school and mean years of schooling for adults. It assesses the level of educational attainment and the availability of educational opportunities within a country.
    • Standard of Living: This dimension is measured by Gross National Income (GNI) per capita, adjusted for purchasing power parity (PPP). It reflects the economic prosperity and living standards of the population, including income levels and access to basic necessities.

    Background

    • The Human Development Index (HDI) was developed by Pakistani economist Mahbub ul Haq and Indian economist Amartya Sen. It is used by the United Nations Development Programme (UNDP) to assess a country’s development as part of the Human Development Report.
    • Alongside the Human Development Index (HDI), the United Nations Development Programme (UNDP) also presents the Human Development Report (HDR) which present-
    1. Multidimensional Poverty Index (MPI),
    2. Inequality-adjusted Human Development Index (IHDI),
    3. Gender Inequality Index(GII) since 2010 and
    4. Gender Development Index (GDI) since 2014

    Key Points as per Report- 

    • India’s Rank on the HDI: India moved up one rank on the Human Development Index (HDI) from 135 in 2021 to 134 in 2022, with slight improvements in life expectancy and Gross National Income (GNI) per capita.
    • Comparison with Neighbors: India ranks below its southern neighbour Sri Lanka (ranked 78) and China (ranked 75) in the High Human Development category, and below Bhutan (ranked 125) and Bangladesh (ranked 129) in the Medium Human Development category.
    • Reducing inequalities: The report highlights a reverse trend in reducing inequalities between wealthy and poor nations. Despite interconnected global societies, collective action on climate change, digitalization, poverty, and inequality is lacking, leading to a widening human development gap.
    • Challenges in Democracy: While nine in 10 people worldwide endorse democracy, over half express support for leaders who may undermine it. Political polarization and limited control over government decisions are prevalent, leading to protectionist or inward-turning policy approaches.

    Action Plans as per report-

    • Multilateral Cooperation: Strengthen international cooperation and collaboration among governments, NGOs, businesses, and other stakeholders to address global challenges collectively. This could involve fostering dialogue, partnerships, and agreements that promote shared goals and responsibilities.
    • Policy Coordination: Enhance coordination and coherence in policymaking at national and international levels to ensure that policies address interconnected challenges comprehensively. This may involve integrating diverse perspectives, aligning strategies across sectors, and leveraging resources efficiently.
    • Investment in Sustainable Development: Increase investments in sustainable development initiatives that prioritize environmental conservation, social equity, and economic prosperity. This could include funding for renewable energy, education, healthcare, infrastructure, and poverty alleviation programs.
    • Empowering Communities: Empower local communities and grassroots organizations to participate in decision-making processes and contribute to problem-solving efforts. This could involve providing resources, capacity-building support, and platforms for civic engagement.
    • Promotion of Dialogue and Understanding: Foster dialogue, empathy, and mutual understanding among diverse communities to mitigate polarization and build social cohesion. This could involve promoting education, cultural exchange programs, media literacy, and initiatives that promote tolerance and respect for human rights.
    • Transparency and Accountability: Enhance transparency, accountability, and integrity in governance structures and institutions to rebuild trust and confidence among citizens. This could involve strengthening anti-corruption measures, promoting open government initiatives, and ensuring inclusive and participatory decision-making processes.
    • Investment in Education and Awareness: Invest in education, public awareness campaigns, and media literacy programs to increase awareness of global challenges, their interconnections, and the importance of collective action. This could help foster a sense of shared responsibility and mobilize public support for collaborative solutions.
    • Promotion of Inclusive Economic Growth: Promote inclusive economic growth that benefits all segments of society, reduces inequality, and creates opportunities for marginalized populations. This could involve implementing policies that support job creation, entrepreneurship, social protection, and access to essential services.
    • Resilience Building: Build resilience to global challenges such as climate change, pandemics, and economic crises by investing in preparedness, adaptation, and mitigation strategies. This could involve strengthening healthcare systems, disaster risk reduction measures, and social safety nets.
    • Advocacy and Leadership: Advocate for political leadership and commitment at all levels to prioritize collective action and address shared challenges effectively. This could involve mobilizing political will, engaging with policymakers, and holding leaders accountable for their actions.

    Conclusion-

    Strengthening multilateral cooperation, policy coordination, sustainable development investment, empowering communities, promoting dialogue, transparency, education, inclusive economic growth, resilience building, and advocating for leadership are vital for addressing global challenges collectively and fostering a sustainable future.

    Mains PYQ-

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

  • Food factor: On the latest retail inflation data

    Why in the news? 

    • India’s retail inflation remained virtually unchanged at 5.09% in February, even as food prices paid by consumers resurged from 8.3% in January to 8.66% in February.

    Context-

    • Most economists expect inflation to stay in the 5.1%-5.2% range in March as well, which would lift average inflation in the last quarter of this year over the 5% average projected by the RBI

    The primary reason behind the food inflation in February-

    • Vegetable Prices Surge: Vegetables experienced a significant price surge, with a seven-month high pace of 30.25% in February. This spike in vegetable prices contributed significantly to the overall food inflation.
    • Rise in Egg and Meat Prices: Prices of eggs and meat/fish also rose at a faster pace in February compared to January. Eggs witnessed a notable increase from 5.6% to 10.7%, while meat and fish prices rose from 1.2% to 5.2%.
    • Deceleration in Pulses and Spices Prices: While there was a slight deceleration in the inflation rate of pulses and spices compared to the previous year, these items still experienced steep price increases. Pulses inflation stood at 18.5%, and spices recorded a 13.5% increase.
    • Regional Disparities: Food inflation varied across different states, with some states experiencing inflation rates above the RBI’s upper tolerance threshold of 6%. States like Odisha, Telangana, Haryana, and Assam recorded high inflation rates, while others like Delhi, Madhya Pradesh, Uttarakhand, and West Bengal had relatively lower inflation rates.
    • Seasonal Factors and Supply Chain Issues: Seasonal factors, along with supply chain disruptions, could have contributed to the rise in food prices. Factors such as adverse weather conditions, transportation constraints, and supply-demand imbalances may have affected the availability and prices of food items in the market.

    To address inflation-related issues in the short term and long term, several measures can be considered:

    [A] Short-Term Measures:

    Supply-Side Interventions:

    • Increase the supply of essential commodities by releasing buffer stocks, if available.
    • Facilitate faster transportation of perishable goods through streamlined logistics and distribution channels.
    • Establish temporary market outlets to directly connect farmers with consumers, reducing intermediary costs and price hikes.

    Import Policies:

    • Relax import restrictions on essential food items to augment domestic supply and stabilize prices.
    • Expedite customs clearance procedures to ensure timely availability of imported goods in the market.

    Price Monitoring and Control:

    • Implement strict price monitoring mechanisms to prevent hoarding and profiteering.
    • Set up special task forces or committees to monitor price movements and take swift action against price manipulation.

    Demand Management:

    • Promote alternative dietary choices to alleviate pressure on high-priced items.
    • Encourage conservation and rational utilization of essential commodities through public awareness campaigns.

    [B] Long-Term Measures:

    Investment in Agriculture Infrastructure:

    • Enhance investment in agricultural infrastructure, including irrigation systems, cold storage facilities, and transportation networks, to improve productivity and reduce post-harvest losses.

    Crop Diversification and Technology Adoption:

    • Encourage farmers to diversify their crops to mitigate the impact of price volatility.
    • Promote the adoption of modern agricultural practices, including mechanization, precision farming, and biotechnology, to enhance crop yields and resilience to climate change.

    Market Reforms:

    • Implement market reforms to create a more efficient and transparent agricultural marketing system.
    • Facilitate the establishment of Farmer Producer Organizations (FPOs) and agricultural cooperatives to empower farmers and strengthen their bargaining power in the market.

    Food Processing and Value Addition:

    • Promote investment in food processing industries to add value to agricultural produce and reduce post-harvest losses.
    • Establish food processing clusters and agro-industrial parks to encourage entrepreneurship and create employment opportunities in rural areas.

    Risk Management and Insurance:

    • Introduce crop insurance schemes and risk management tools to protect farmers from income volatility caused by price fluctuations and natural disasters.
    • Provide training and technical assistance to farmers to improve their risk assessment and management capabilities.

    Sustainable Agriculture Practices:

    • Encourage the adoption of sustainable agriculture practices, including organic farming, agroforestry, and soil conservation, to ensure long-term environmental sustainability and food security.

    Conclusion-

    To mitigate food inflation, short-term measures such as supply-side interventions and price monitoring are essential, while long-term solutions like investment in agriculture infrastructure and market reforms are crucial for sustainable food security.

  • Mission Palm Oil: Achieving Self-sufficiency in Edible Oil Production

    Why in the news-

    • The Prime Minister highlighted the National Mission on Edible Oils – Oil Palm (NMEO-OP) during his visit to Arunachal Pradesh, inaugurating the first oil mill under this mission.

    Why discuss this?

    • This results in a substantial outflow of $20.56 billion in foreign exchange, the need for self-reliance in edible oil production has become paramount.

    Edible Oil Consumption in India: Key Facts

    • India, the world’s biggest importer of vegetable oils, is likely to buy 15.6 million metric tons of cooking oils in the 2023-24 oil year, down from 16.6 million in the current year to Oct.
    • With India imports 57% of its vegetable oil demand.
    • These imports have shown a declining trend in recent months.
    • This decline is attributed to various factors such as reduced availability of palm oil for edible oil requirements due to producers diverting it for biodiesel production.
    • Additionally, the import of soyabean oil from Argentina increased sharply in February 2024, while imports from Brazil declined.
    • The top three vegetable oil imports – palm, soybean, and sunflower seed oil.
    • India’s vegetable oil sector accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% of the value of all agricultural commodities.
    • A substantial portion of India’s edible oil requirement is fulfilled through palm oil imports from Indonesia and Malaysia.

    Mission Palm Oil: A Catalyst for Self-Reliance

    • It is a Centrally Sponsored Scheme launched in 2021 targeting a substantial increase in oil palm cultivation and crude palm oil production.
    • It has been introduced with a particular emphasis on the Northeast region and the Andaman and Nicobar Islands.

    Objectives:

    1. Expand oil palm acreage by an additional 6.5 lakh hectares by 2025-26
    2. Increase crude palm oil production to 11.2 lakh tonnes by 2025-26, reaching up to 28 lakh tonnes by 2029-30.
    3. Increase consumer awareness to maintain a consumption level of 19.00 kg/person/annum till 2025-26.

    Focus Areas

    (1)  Fixing of Viability Price

    • Oil palm farmers currently produce Fresh Fruit Bunches (FFBs), from which the industry extracts oil.
    • Presently, FFB prices fluctuate with international Crude Palm Oil (CPO) prices.
    • The Government of India will now assure price stability for FFBs, known as Viability Price (VP), shielding farmers from international CPO price fluctuations.
    • A Formula Price (FP), set at 14.3% of CPO and adjusted monthly, will be established. Viability gap funding will be the difference between VP and FP, directly disbursed to farmers’ accounts via Direct Benefit Transfer (DBT) when necessary.

    (2) Input Assistance

    • The scheme’s second major focus is to significantly enhance input assistance/interventions, including:
      1. Increasing assistance for oil palm planting material from Rs. 12,000 to Rs. 29,000 per hectare.
      2. Boosting support for maintenance and intercropping interventions.
      3. Providing special assistance of Rs. 250 per plant for replanting old gardens to rejuvenate them.
      4. Offering special assistance tailored for the North-East and Andaman regions, including provisions for half-moon terrace cultivation, bio-fencing, land clearance, and integrated farming.

    Try this PYQ from CSE Prelims 2019:

    Among the following, which one is the largest exporter of rice in the world in the last five years?

    (a) China

    (b) India

    (c) Myanmar

    (d) Vietnam

     

    Practice MCQ:

    Consider the following statements:

    1. India is the world’s biggest importer of vegetable oils.
    2. The top three vegetable oil imports include – soybean, palm and groundnut oil.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • [pib] E- Vehicle Policy to promote India as a Manufacturing Destination for EVs

    Why in the news-

    • The Union Government has approved a scheme aimed at promoting India as a manufacturing destination for e-vehicles (EVs) with the latest technology.
    • The policy aims to attract investments from reputed global EV manufacturers to bolster the EV ecosystem in the country.

    About E- Vehicle Manufacturing Policy

    • Access to Latest Technology: Indian consumers will gain access to the latest technology in EVs, aligning with the Make in India initiative.
    • Strengthening the EV Ecosystem: The policy aims to strengthen the EV ecosystem by fostering healthy competition among EV players, leading to high-volume production and economies of scale.
    • Reducing Import Dependency: By promoting domestic production, the policy aims to reduce imports of crude oil, lower the trade deficit, and curb air pollution, particularly in cities.
    • Key provisions of the Policy include:
    1. Minimum Investment Requirement: A minimum investment of Rs 4150 crore (∼USD 500 million) is required to qualify for the scheme.
    2. Timeline for Manufacturing: Manufacturers must set up manufacturing facilities in India within 3 years, start commercial production of e-vehicles, and achieve 50% domestic value addition (DVA) within 5 years.
    3. Domestic Value Addition (DVA): Localization levels of 25% by the 3rd year and 50% by the 5th year must be achieved during manufacturing.
    4. Customs Duty Incentives: A customs duty of 15% applies to vehicles with a minimum CIF value of USD 35,000 and above, subject to certain conditions.

    Additional Provisions and Requirements

    • Limit on Duty Forgone: The duty foregone on imported EVs is limited to the investment made or ₹6484 crore, whichever is lower.
    • Annual Import Limits: A maximum of 40,000 EVs can be imported annually, subject to investment thresholds.
    • Bank Guarantee Requirement: Investment commitments must be backed by a bank guarantee, which will be invoked in case of non-achievement of DVA and minimum investment criteria.
    • Bank Guarantee Invocation: The bank guarantee will be invoked if companies fail to meet the DVA and minimum investment criteria outlined in the scheme guidelines. 

    Various Policy Moves for Promoting E-Vehicles

    • FAME scheme II (2019): Offers incentives such as subsidies, tax rebates, and preferential financing for EV manufacturers and buyers.
    • National Electric Mobility Mission Plan (2013): Aims to achieve annual sales targets of 6-7 million hybrid and electric vehicles by 2020 through fiscal incentives.
    • Amendments to the Model Building Bye-laws (2016): It requires 20% of parking spaces in residential and commercial buildings to be allocated for EV charging facilities.
    • National Mission on Transformative Mobility and Battery Storage (2019): Aims to create an ecosystem for EV adoption and support the establishment of large-scale battery manufacturing plants.
    • Production Linked Incentive (PLI) scheme (2021): It incentivises EV and component manufacturing.
    • Vehicle Scrappage Policy (2021): It incentivizes the scrapping of old vehicles and the purchase of new EVs.
    • Ministry of Power’s guidelines: It mandates charging stations every 3 km along grids and every 25 km on highways.

    Try this PYQ from CSE Mains 2019:

    Q. How is efficient and affordable urban mass transport key to the rapid economic development in India?

  • [pib] Integration of Kisan Credit Card (KCC) Fisheries Scheme and JanSamarth Portal

    Why in the news-

    • The Department of Fisheries inaugurated the integration of the Kisan Credit Card (KCC) Fisheries scheme onto the JanSamarth Portal, marking a revolutionary step in providing credit facilities to fishers and fish farmers nationwide.

    JanSamarth Portal

    • It is a first-of-its-kind online platform for directly connecting lenders with beneficiaries. Citizens can avail loans under 13 Central government schemes under 4 loan categories.
    • The one-stop portal allows citizens to check eligibility, apply online and get digital approval.

    About KCC Fisheries Scheme

    • The GoI, in the year 2018-19, extended KCC facility to fisheries and animal husbandry farmers to help them to meet their working capital requirements.
    • Bank authorities have been instructed to issue KCC within 14 days of receipt of the completed application from the fish farmers.
    • Benefits Include:
    1. For the existing KCC holders the benefits of interest subvention and prompt repayment incentive will be admissible up to the credit limit of Rs. 3 lakhs including fisheries activities.
    2. In the case of new card holders, the credit limit is Rs. 2 lakhs to meet their working capital requirements for fisheries activities.
    3. In the KCC scheme @7% is the lending rate to farmers including @2% interest subvention per annum by GoI. Also, another @3% per annum is provided in case of prompt repayment as an additional incentive as per the existing guidelines.
    4. This implies that the farmers repaying promptly as above would get a loan @ 4% per annum effectively for loan amount upto Rs 2 lakhs.

    Kisan Credit Cards (KCC) Scheme

    • The KCC scheme was introduced on the recommendation of R.V. Gupta of the National Bank for Agriculture and Rural Development.
    • The scheme was launched in 1998 to provide adequate and timely credit support from the banking system to the farmers.
    • It provides a single window with flexible and simplified procedures to the farmers for their cultivation and other needs like purchasing agriculture inputs such as seeds, fertilizers, pesticides etc. and drawing cash for their production needs.
    • The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004.
    • In 2018-19, it was extended to fisheries and animal husbandry farmers.

    Objectives include:

    1. To meet the short-term credit requirement for cultivation
    2. To manage post-harvest expenses
    3. To meet the consumption requirement of farmer’s household
    4. Working capital for maintaining the farm assets and activities allied to agriculture
    5. Investment credit requirement for agriculture-allied activities

    KCC scheme is implemented by:

    1. Commercial banks
    2. Regional Rural Banks (RRBs)
    3. Small Financial Banks, and
    4. Cooperative banks

    Try this PYQ from CSE Prelims 2020:

    Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

    1. Working capital for maintenance of farm assets
    2. Purchase of combine harvesters, tractors and mini trucks
    3. Consumption requirements of farm households
    4. Post-harvest expenses
    5. Construction of family house and setting up of village cold storage facility

    Select the correct answer:

    (a) 1, 2 and 5 only

    (b) 1, 3 and 4 only

    (c) 2, 3, 4 and 5 only

    (d) 1, 2, 4 and 5

     

    Practice MCQ:

    The JanSamarth Portal often seen in the news is related to:

    (a) Lending Facility

    (b) E-KYC

    (c) Consumer Grievances

    (d) Right to Information

     

  • AH-64E Apache Attack Helicopters Fleet inducted to the Army

    Why in the news-

    • The Indian Army Aviation Corps inaugurated its first unit of AH-64E Apache Attack Helicopters into its fleet at Jodhpur Air Base.

    AH-64E Apache Attack Helicopters

    • The AH-64E Apache also known as ‘Apache Guardian’ is widely recognized as the world’s most advanced multi-role combat helicopter.
    • It originates from the United States and is manufactured by Boeing.
    • In February 2020, India sealed a deal with Boeing for the acquisition of six AH-64E for the Army, with an additional six helicopters contracted subsequently.
    • Several countries have acquired the AH-64E, including India, Egypt, Greece, Indonesia, Israel, Japan, South Korea, Kuwait, Netherlands, Qatar, Saudi Arabia, Singapore, UAE, and the UK.
    Indigenous Push

    • Tata Boeing Aerospace Limited (TBAL), a joint venture between Boeing and Tata Advanced Systems Ltd. (TASL), was established in 2016 to manufacture fuselages for the AH-64 Apache.
    • TBAL’s Hyderabad facility has been delivering AH-64 Apache fuselages since 2018.
    • The advanced manufacturing facility will eventually become the sole producer of AH-64 fuselages in the world, with 90% of parts sourced from Indian suppliers.

    Combat Features

    • Engineered with an open systems architecture to integrate cutting-edge communications, navigation, sensor, and weapon systems.
    • Boasts enhanced thrust and lift capabilities, joint digital interoperability, improved survivability, and cognitive decision aiding.
    • Incorporates a new integrated infrared laser for simplified target designation and upgraded infrared imagery blending infrared with night vision capabilities.

    Strategic Significance of the Induction

    • Enhancing Combat Capability: The induction of Apache helicopters marks a significant advancement for the Army Aviation Corps, providing formidable firepower and maneuverability in combat scenarios.
    • Complementing Indigenous Capabilities: The Apaches will complement the indigenous Light Combat helicopter (LCH), strengthening the Army’s aerial combat capabilities.
    • Replacing the ageing arsenal: The Apache fleet is set to will replace the Russian Mi-35 attack helicopters in service.

    Try this PYQ from CSE Prelims 2018:

    Q.What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?

    (a) An Israeli radar system

    (b) India’s indigenous anti-missile programme

    (c) An American anti-missile system

    (d) A defence collaboration between Japan and South Korea

    Practice MCQ:

    What is “AH-64E Apache Guardian “, sometimes seen in the news?

    (a) Multi-role Helicopter

    (b) Radar

    (c) Anti-Tank Missile

    (d) Air-Defence System

     

  • U.S. to moot first-of-its-kind resolution at UN seeking equal global access to AI

    Why in the news? 

    • The United States is leading an effort at the United Nations to create rules for Artificial intelligence (AI).

    Context- 

    • The draft resolution, which recognizes the rapid acceleration of AI development and use, aims to close the digital divide between countries.
    • The United States initiated negotiations with all 193 UN member nations about three months before the statement.
    • It plans to make sure that nations have the necessary capabilities to take advantage of the technology when it comes to detecting diseases and predicting floods.

    What are the provisions proposed through the New framework?

    • Encouragement for Regulatory and Governance Approaches: The resolution encourages various entities, including countries, organizations, communities, and individuals, to develop and support regulatory and governance frameworks for safe AI systems. It emphasizes the importance of safeguarding against improper or malicious use of AI systems.
    • Global Movement Towards AI Regulations: Countries worldwide, including the U.S., China, and the EU, are working on AI regulations. The EU is set to finalize comprehensive AI rules, and other nations and groupings like the G20 are also developing AI regulations.
    • Assistance to Developing Countries: The U.S. draft resolution calls for helping developing countries access the benefits of digital transformation and safe AI systems. It stresses the importance of respecting human rights and fundamental freedoms throughout the lifecycle of AI systems.
    • Support for UN Development Goals:  It particularly aims to support the UN’s 2030 goals, including ending hunger and poverty, improving health, and achieving gender equality.

     

    Need Global support to pass the resolution: 

    • For Principles: The resolution aims to garner global support for a set of principles for developing and using AI. It intends to guide the use of AI systems for beneficial purposes while managing associated risks.
      • If approved, the resolution is deemed a historic advancement in promoting safe, secure, and trustworthy AI on a global scale.
    • Consensus Support: After several drafts, the resolution achieved consensus support from all member states. It will be formally considered later in the month.
    • Non-Legally Binding: Unlike Security Council resolutions, General Assembly resolutions are not legally binding. However, they serve as important indicators of global opinion.

    How it will positively impact the well-being of the Society all over?

    AI can play a crucial role in both detecting diseases and predicting floods by leveraging various data sources, advanced algorithms, and computational power-

    Disease Detection with AI:

    • Medical Imaging Analysis: AI algorithms can analyze medical images such as X-rays, MRI scans, and CT scans to detect abnormalities or signs of diseases like cancer, tuberculosis, or pneumonia.
      • Deep learning models, such as convolutional neural networks (CNNs), have shown remarkable accuracy in identifying patterns in medical images.
    • Health Monitoring and Predictive Analytics: AI-powered health monitoring devices can continuously collect data such as heart rate, blood pressure, and glucose levels.
      • Machine learning algorithms can analyze this data to detect anomalies or early signs of diseases, allowing for early intervention and prevention.
    • Diagnostic Decision Support Systems: AI-based diagnostic systems can assist healthcare professionals in diagnosing diseases by analyzing patient data, symptoms, medical history, and laboratory test results.
      • These systems can provide accurate and timely recommendations, improving diagnostic accuracy and efficiency.

    Flood Prediction with AI:

    • Data Analysis and Modeling: AI algorithms can analyze various data sources such as weather patterns, topography, soil moisture, river levels, and historical flood data to build predictive models. Machine learning techniques, including regression, decision trees, and neural networks, can identify complex relationships between these factors and predict the likelihood and severity of floods.
    • Remote Sensing and Satellite Imagery: AI can analyze satellite imagery and remote sensing data to monitor changes in land use, vegetation, and water bodies. This information can be used to assess flood risks and predict flood events in vulnerable areas.
    • Real-time Monitoring and Early Warning Systems: AI-powered sensors and monitoring devices can continuously collect data on rainfall, river levels, and water flow rates. Machine learning algorithms can analyze this data in real time to detect sudden changes or anomalies indicative of imminent flooding. Early warning systems can then alert authorities and communities, enabling them to take preventive measures and evacuate residents if necessary.

    Conclusion-

    In the way forward, global consensus on AI principles is vital. Continued efforts in developing regulatory frameworks and assisting developing nations are essential. AI’s role in disease detection and flood prediction underscores its potential for addressing global challenges effectively.

    Mains Question for Practise-

    Discuss the global efforts towards establishing regulatory frameworks for Artificial Intelligence (AI) and its applications in healthcare and disaster management. Examine the significance of international cooperation in ensuring the safe and beneficial deployment of AI technologies. (250 words)

  • Has poverty really dropped to 5% in India?

    Why in the news? 

    • NITI Aayog’s B.V.R. Subrahmanyam stated that less than 5% of Indians live below the poverty line based on HCES(Household Consumption Expenditure Survey) 2022-23 findings.

    Context:

    • According to the World Bank, in India, 21.9% of the population lives below the national poverty line in 2011.
    • In 2018, almost 8% of the world’s workers and their families lived on less than US$1.90 per person per day (international poverty line).
    • About HCES (Household Consumption Expenditure Survey): The HCES is usually conducted by the National Statistical Office (NSO) every 5 years. It is designed to collect information on the consumption of goods and services by households

    What does the  HCES Survey say?

    • The survey indicates 2.5 times increase in consumption expenditure since 2011-12, but critics question income rise parity on basis of the following conditions:
      • Nominal vs. Real Terms: Consumption has increased about 40% per capita in real terms over the past 11 years, despite nominal terms showing a 2.5 times increase.
      • Wage Growth: Data from the Periodic Labour Force Survey (PLFS) reveals a 3.2% annual increase in wages for agricultural workers since 2011, indicating real wage growth.
      • Tax Data: Tax records demonstrate robust growth in the wages of salaried workers since 2011, further supporting the claim of increased incomes lead to higher consumption.

     

    How the Poverty line is defined in India? Does the poverty line need to be raised?

    • The poverty line in India: Historically based on the Tendulkar Committee observation, the poverty line, currently approximates ₹1,500 in rural and ₹1,800 in urban areas. However, it lacks a clear conceptual basis, diverging from traditional calorie-based metrics. Additionally, there’s no officially declared poverty line presently.
    • Poverty Line Calculation: NITI Aayog’s task force calculates the poverty line in India using data from the National Sample Survey Office, which is part of the Ministry of Statistics and Programme Implementation.
    • Need for raising the Poverty line: In 2011-12, India’s poverty rate was 12.5%, but it has decreased to 5% by 2022-23. Using the Tendulkar poverty line, poverty levels are around 2%, indicating the need to increase the poverty line. Extreme poverty has been reduced, but raising the poverty line is necessary, as indicated by different calculations.

    What is the Criticism faced along the lines of income rise parity?

    • Real Wage Growth: Contrary to claims of wage growth, numerous studies indicate that real wages have grown by less than 1% annually since 2017, and have even declined for construction workers.
    • Employment Data: The celebrated increase in employment shown in the latest PLFS survey for 2022-23 is misleading, as it primarily stems from a rise in unpaid family helpers rather than genuine job creation.
    • Unpaid Workers: The prevalence of unpaid family helpers, particularly among women, has increased significantly, with 37.5% of women workers now being unpaid, up from 32% in previous years.
    • Paid Employment Rates: When considering only paid employment (those receiving compensation for work), the rates are notably low, with only 48% for men and 13% for women, indicating a lack of genuine employment opportunities and wage growth for most working families.
    • Stagnant Demand for Mass Consumption Goods: Despite overall consumption growth, demand for mass-consumption goods and fast-moving consumer goods (FMCGs) remains stagnant, suggesting limited improvement in the purchasing power of the majority of the population.
    • Two-Wheeler Sales: Sales of two-wheelers, a key indicator of consumer demand, have not recovered to pre-demonetization levels (pre-November 2016), indicating persistent challenges in the broader economy affecting consumer spending habits.

    The Other side of the coin- 

    • Concerns with Private Sector Data: There is skepticism regarding the quality of data provided by private sector entities like CMIE, particularly regarding indicators such as female labor force participation rates.
    • Female Labor Force Participation Rate: CMIE data suggests a significantly low female labor force participation rate in India, with only 9% of women reportedly working, raising questions about the accuracy and reliability of these statistics.
    • Comparison with Other Countries: The data implies that India’s female labor force participation rate is lower than that of countries like Yemen and Iraq, highlighting the severity of the issue and prompting concerns about the credibility of the data.

    Way Forward: Measures to improve the data and poverty line – 

    • Revising Poverty Line Definition: Develop a clear conceptual basis for defining the poverty line, moving away from historical metrics like the Tendulkar poverty line towards more comprehensive and inclusive criteria, such as calorie-based metrics or multidimensional poverty indicators.
    • Official Declaration of Poverty Line: Establish an officially declared poverty line, supported by rigorous research and consultation with experts, to provide clarity and consistency in poverty estimation efforts.
    • Enhanced Monitoring and Evaluation: Strengthen monitoring and evaluation mechanisms to regularly review and update the poverty line based on evolving socio-economic conditions, ensuring its relevance and accuracy over time.

    Conclusion:

    The poverty line in India, historically based on the Tendulkar poverty line, needs revision due to its lack of conceptual basis and the absence of an official declaration. Despite reductions in extreme poverty, concerns persist over stagnant wage growth, misleading employment data, and the need for improved poverty measurement methodologies.

  • RBI may move some NBFCs to Top Layer this year

    In the news

    • Nearly two years after introducing a revised regulatory framework for non-banking finance companies (NBFCs), the Reserve Bank of India is set to review the categorisation of NBFCs in 2024.
    • Currently, 16 NBFCs are placed in the upper layer.

    What are Non-Banking Financial Companies (NBFCs)?

    • A NBFC is a company registered under the Companies Act, 1956.
    • It engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, and chit business.
    • It does NOT include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.

    How are NBFCs different from Bank?

    • NBFCs lends and make investments and hence their activities are akin to that of banks.
    • However, there are a few differences as given below:
    1. Commercial Banks are regulated under Banking Regulation Act, 1949.
    2. NBFC CANNOT accept demand deposits.
    3. NBFCs DO NOT form part of the payment and settlement system and cannot issue cheques drawn on itself.
    4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is NOT available to depositors of NBFCs, unlike in case of banks.

    Different types/categories of NBFCs registered with RBI

    NBFCs are categorized:

    1. in terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs,
    2. non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and
    3. by the kind of activity they conduct.

    Within this broad categorization the different types of NBFCs are as follows:

    Definition
    Asset Finance Company (AFC) A financial institution primarily engaged in financing physical assets used in productive/economic activities, such as automobiles, tractors, machinery, and industrial equipment.
    Investment Company (IC) A company whose principal business involves acquiring securities.
    Loan Company (LC) A financial institution primarily engaged in providing finance through loans, advances, or other means for activities other than its own.

    Does not include Asset Finance Companies.
    Infrastructure Finance Company (IFC) A non-banking finance company that deploys at least 75% of its total assets in infrastructure loans, with a minimum Net Owned Funds of ₹300 crore, a minimum credit rating of ‘A’ or equivalent, and a CRAR of 15%.
    Systemically Important NBFCs NBFCs with an asset size of ₹500 crore or more, as per the last audited balance sheet.

    Considered significant due to their potential impact on the overall financial stability of the economy.

     

    Scale-Based Regulation of NBFCs

    • Scale-based regulations came into effect in October 2021 and were implemented a year later by RBI.
    • There are four layers namely the base layer, middle layer, upper layer and top layer.
    • As on September 30, 2023, NBFCs in the base, middle and upper layers constituted 6 per cent, 71 per cent and 23 per cent of the total assets of NBFCs respectively.
    • Presently, no NBFC is listed in the top layer.

    Here’s a breakdown of the key aspects of the SBR:

    1. Base Layer (NBFC-BL)
    • The Base Layer primarily comprises non-deposit-taking NBFCs with assets below Rs 1,000 crore.
    • It encompasses NBFC Peer to Peer (P2P), NBFC-Account Aggregator (AA), Non-Operative Financial Holding Company (NOFHC), and NBFCs without public funds and customer interface.
    1. Middle Layer (NBFC-ML)
    • The Middle Layer includes deposit-taking NBFCs and non-deposit-taking NBFCs with assets exceeding Rs 1,000 crore.
    • It encompasses NBFCs involved in specific activities such as Standalone Primary Dealers (SPDs), Infrastructure Debt Fund – NBFCs (IDF-NBFCs), Core Investment Companies (CICs), Housing Finance Companies (HFCs), and Infrastructure Finance Companies (NBFC-IFCs).

    III. Upper Layer (NBFC-UL)

    • The Upper Layer comprises NBFCs identified by RBI as requiring enhanced regulatory requirements based on specific parameters and scoring methodology.
    • The top 10 eligible NBFCs in terms of asset size will always be placed in the Upper Layer, irrespective of other factors.
    1. Top Layer (NBFC-TL)
    • NBFCs in the Upper Layer may be transferred to the Top Layer if RBI perceives a significant increase in potential systemic risk.
    • Currently, the Top Layer remains vacant but serves as a precautionary measure for heightened risk situations.

     

    With inputs from: https://rbi.org.in/scripts/PublicationsView.aspx?Id=21580

    Practice MCQ:

    Q. With reference to the Scale-Based Regulation of Non-Banking Financial Companies (NBFCs), consider the following statements:

    1. Higher the layer, least is the regulatory intervention required by the RBI.
    2. Currently, no NBFC is listed in the top layer.

    Which of the given statements is/are correct?

    a) Only 1

    b) Only 2

    c) Both 1 and 2

    d) Neither 1 nor 2

    Try this PYQ from CSE 2020:

    1. If you withdraw ` 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be:

    (a) to reduce it by ` 1,00,000

    (b) to increase it by ` 1,00,000

    (c) to increase it by more than ` 1,00,000

    (d) to leave it unchanged

     

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