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GS Paper: GS3

  • ‘BIMARU’ Tag: What does this term mean?

    Central idea: While addressing a summit in UP, PM recalled the tag of ‘BIMARU’, once used to describe the state.

    What are BIMARU states?

    • The term “BIMARU” is an acronym formed from the first letters of five states – Bihar, MP, Rajasthan, and UP – that were believed to be economically and socially backward in the 1980s and 1990s.
    • The term was popularized by economist Ashish Bose in the 1980s to describe the poor economic and social indicators of these states.
    • He coined this term in a paper presented to then-PM Rajiv Gandhi.
    • These states were characterized by low literacy rates, poor infrastructure, high poverty rates, and low levels of industrialization.
    • The term “BIMARU” itself is an amalgamation of the Hindi words “bimar” (sick) and “ru” (a suffix meaning “land of”).

    Behind the slang name ‘BIMAR’

    The BIMARU states of Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh are characterized by several economic and social features that distinguish them from other states in India. Some of these features include:

    • Low per capita income: These have traditionally had low per capita income levels compared to other states in India, with Bihar having the lowest per capita income among Indian states.
    • High poverty rates: They have a high percentage of people living in poverty, with Bihar and Uttar Pradesh having some of the highest poverty rates in the country.
    • Low literacy rates: They have lower literacy rates than the national average, with Bihar having the lowest literacy rate among Indian states.
    • Poor healthcare indicators: They have traditionally had poor healthcare indicators, with high infant and maternal mortality rates.
    • Agriculture-based economy: These states are primarily agricultural states, with a significant percentage of the population engaged in agriculture and related activities.
    • Significant population: They are among the most populous states in India, with Uttar Pradesh being the most populous state in the country.

    Overall, the BIMARU states have traditionally lagged behind other states in India in terms of economic and social development, although in recent years, there has been progress in improving development indicators.

    Persisting challenges

    These states still face significant challenges, including high levels of poverty and unemployment.

    • Still a national laggard: There is still a significant development gap between these states and the more developed regions of the country. For example, in 2019-20, per capita income in Bihar was only about a third of the national average, and in UP, only about half of the population has access to basic sanitation facilities.
    • High Population: The share of BIMARU states in the absolute increase in India’s population during 2001-26 will be of the order of 50.4 per cent while the share of the south will be only 12.6 per cent.

    How are these states faring now?

    • In recent years, some of these states, such as Rajasthan and Madhya Pradesh, have shown significant improvement.
    • In terms of economic growth, several of these states have experienced high growth rates in recent years, with Madhya Pradesh and Bihar recording growth rates of over 10% in 2019-20.
    • Uttar Pradesh and Rajasthan have also recorded growth rates of over 7% in recent years.
    • There has also been progress in improving social indicators such as literacy rates and healthcare infrastructure.
    • For example, Bihar has seen a significant increase in literacy rates, with the state’s literacy rate increasing from 47% in 2001 to 63% in 2011.

    Alternatives to ‘BIMARU’ terms

    • PM has urged to refrain the use of such terms as they only serves to reinforce negative stereotypes and inhibit progress towards more equitable development across the country.
    • He coined the term such as ‘Aspirational Districts/Blocks’ as alternative to such negative word.

    Way forward

    This involves several key strategies to address the economic and social challenges that these states face. Some of these strategies include:

    • Enhancing economic growth: The BIMARU states need to focus on enhancing economic growth through policies that encourage investment, job creation, and entrepreneurship. This can include measures such as improving the ease of doing business, providing infrastructure, and investing in sectors with high growth potential.
    • Improving social indicators: They need to focus on improving social indicators such as literacy rates, healthcare, and sanitation. This can involve investing in education and healthcare infrastructure, and implementing programs that target poverty reduction and social inclusion.
    • Enhancing agricultural productivity: Given that agriculture is a major contributor to the economy of BIMARU states, efforts should be made to enhance agricultural productivity and efficiency. This can include investments in irrigation and modern agricultural techniques, and support for small and marginal farmers.
    • Encouraging inclusive development: In order to reduce disparities and ensure inclusive development, policies and programs should be targeted towards the most vulnerable and marginalized sections of society. This can include measures to promote gender equality, social inclusion, and address issues such as caste-based discrimination.
    • Leveraging technology: The BIMARU states can leverage technology to enhance economic and social development. This can involve the use of digital technologies to improve access to education and healthcare and promote entrepreneurship and innovation.

    Conclusion

    • Overall, while the BIMARU states have made progress in recent years, there is still a long way to go in terms of achieving more equitable development across the country.

     

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  • MIIRA: India readies plan to popularise millets on world stage

    On the premises of G20, India is planning to propose the launch of a global initiative ‘MIIRA’ to encourage the consumption and production of millets.

    What are Millets?

    millet

    • Millets are a group of small-seeded grasses that are commonly cultivated and consumed as staple foods in many parts of the world, including Africa and Asia.
    • Millets are highly nutritious, gluten-free, and have a low glycemic index, making them an ideal food for people with various dietary requirements and health conditions.
    • They are cereals such as sorghum (jowar), pearl millet (bajra), foxtail millet (kangni/ Italian millet), little millet (kutki), kodo millet, finger millet (ragi/ mandua), proso millet (cheena/ common millet), barnyard millet (sawa/ sanwa/ jhangora), and brown top millet (korale).

    What is MIIRA?

    • “MIIRA” or Millet International Initiative for Research and Awareness will be aimed at coordinating millet research programmes at the international level.
    • For MIIRA to take off, India will contribute the “seed money” while each G20 member will later have to contribute to its budget in the form of a membership fee.
    • The secretariat will be in Delhi, the sources said, adding that this will, with India being a major producer of millets, ensure a flow of investment from the country’s industry and research bodies.
    • It is in line with the UN declaring 2023 as the International Year of Millets and the Centre’s plan to make India a global hub for millets.
    • It is launched keeping in mind the nutritional value and the climate-resilient nature of millets.

    Key objectives

    • MIIRA will aim to connect millet research organisations across the world while also supporting research on millet crops.
    • Besides setting up a web platform to connect researchers and holding international research conferences, the plan is also to promote millet consumption by raising awareness.

    Ecological significance of millets

    • Drought resistance: Millets are drought-resistant crops, which means that they can grow in areas with low rainfall and are less susceptible to the effects of drought. This makes them an ideal crop for farmers in regions that are prone to drought and other climate-related risks.
    • Soil health: Millets have shallow roots and can grow in poor soil, which means that they can be cultivated in marginal lands that are unsuitable for other crops. Millets also improve soil health by enhancing soil organic matter, reducing soil erosion, and improving soil structure and fertility.
    • Low carbon footprint: Millets have a low carbon footprint compared to other crops because they require less water, fertilizer, and pesticides. They are also less energy-intensive to produce and transport.
    • Resilience to climate change: Millets are known for their resilience to climate change and extreme weather events, such as floods and droughts. By promoting the cultivation and consumption of millets, countries can build resilience to the impacts of climate change and ensure food security in the face of these challenges.
    • Biodiversity conservation: Millets are often grown in mixed cropping systems, which promote biodiversity and can help conserve natural resources. The cultivation of millets also supports the conservation of traditional knowledge and local agricultural practices, which can be important for the resilience of rural communities in the face of climate change.

    Recent initiatives to promote Millets

    • Finance Minister described various types of millets as ‘Shree Anna’ in her budget speech.
    • To make India a global hub for Shree Anna, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence.
    • In 2018, the Agriculture Ministry declared some millets as ‘Nutri Cereals’ for their “high nutritive value”.

    How popular are millets globally?

    • Now grown in more than 130 countries, millets are the traditional food for more than half a billion people in Asia and Africa.
    • Gobally, jowar is the most widely grown millet crop; its major producers are the US, China, Australia, India, Argentina, Nigeria, and Sudan.
    • Bajra, another major millet crop, is mainly grown in some African countries and India, where millets are mainly a kharif crop.

     

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  • 1st Saudi Women to space via Axiom-2 Mission

    saudi

    Central idea: Saudi Arabia will send its first-ever woman astronaut on the US-led Axiom 2 space mission later this year, in the latest move to revamp the kingdom’s ultra-conservative image.

    Axiom Mission 2

    • Axiom Mission 2 is a private spaceflight mission organized by Axiom Space, a Houston-based aerospace company.
    • The mission is scheduled to launch in 2023 and aims to send four private individuals on a 10-day trip to the International Space Station (ISS).
    • Rayyana Barnawi will join fellow Saudi male astronaut Ali Al-Qarni on a mission to the International Space Station (ISS) during the second quarter of 2023.
    • The mission is the second private crewed flight to the ISS, following the Inspiration4 mission by SpaceX.
    • The crew is expected to undergo months of training, including simulations, physical conditioning, and emergency procedures.
    • The mission is part of Axiom Space’s plan to establish a private space station attached to the ISS, which is expected to be launched in 2024.

     

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  • Role of regulators in the Stock Market

    regulator

    Context

    • On 25 January, US-based Hindenburg Research put out a tweet, talking about a negative report on the Adani Group that it had published. The report made many allegations against the group which triggered a fall in the price of their listed stocks.

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    Just think of this situation

    • A research report is released by a global firm that is also a short seller (that is, one who sells shares that it does not own, but buys them back at a lower price once the price falls).
    • The report outlines areas of concern in a company that is listed in another jurisdiction. The issues raised could relate to the firm’s accounting or market practices.
    • The report is released, quite curiously, before the company is going in for an equity issuance.

    What happens after the news?

    • Panic sale: As equity markets run on sentiments, such news leads to a panic sale and the share price of the company comes down sharply.
    • Widespread uncertainty: The market sees investor wealth eroding sharply, leading to widespread uncertainty, as this is how contagions progress.
    • Outrage: Denials are issued by the concerned company while the short seller stands firm on its views. However, shareholders have seen an erosion in their wealth and there is outrage everywhere.

    In such a situation, what can the regulator do?

    • Policies and system in place to put verified facts in public domain: It is for regulators in other jurisdictions to have policies/systems in place for verified facts to be put in the public domain.
    • In the current context: The Securities and Exchange Commission of the US would matter and if the broker complied with its rules, then there is nothing to stop their views from being aired in a globalised world. This is why it is said that if any company opts for listing in overseas markets, there is more reason to ensure that its accounts are in place and there are no deviations from best practices.

    What can regulators do to protect investors?

    • It is necessary to understand that when share prices tumble: Only when someone sells the shares that have declined in value will a loss be actually incurred. This is the first point that ordinary investors need to keep in mind. While the media will talk of the loss of value and wealth, it is notional for those shareholders who don’t sell. And stock prices will return to their equilibrium once the storm passes.
    • There is a need to have a wide market intelligence network: A special division that continuously analyses the messaging about Indian companies across the world. Given that such reports do not come up without signals being sent along the way, monitoring of views on companies listed overseas would be essential.
    • While citing financial accounting irregularities need to be looked into: the accounting and auditing firms need to take on more responsibility to ensure that the Generally Accepted Accounting Practices (GAAP) are followed for overseas-listed firms. They will have to be made partners in any such crisis in terms of taking ownership and clarifying the same.
    • Detecting price manipulation: Price manipulation, for instance, is one practice that has always been a concern for regulators. And it takes a lot of experience to detect it. Thus exchanges need to ensure that their market watch and surveillance practices are robust. This is where trading patterns can show if there has been market manipulation.
    • Restoring assurance and sanity in the market: It is necessary that investors have some assurance from the regulator, which may be needed to restore sanity in the markets. However, this should be an immediate and time-bound investigation which looks at the allegations or the shortcomings of the report.
    • Investing derivative segments too: As a corollary, the regulator needs to investigate the derivative segment too and probably talk to other regulators to analyse how the short positions have been created and whether they were in order. This will mean being in touch with other regulators, especially the SEC which regulates the jurisdiction for most overseas listings.
    • Audit firms can be employed to flag off the concerns: The regulator should insist that all overseas listed companies have regular investor calls with stakeholders where meetings are recorded and transmitted back home for special teams to examine so that there is a sense of how potential investors feel about the companies.

    Conclusion

    • In the cases of overseas reports, investors must have some assurance from the regulator, which can restore sanity in the markets. But investors also need to be proactive when investing. Those who are more active investors would perhaps need to be aware of developments in the companies that they have invested in.

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  • Budget and the Digital Governance

    Budget

    Context

    • 2023 promises to be a landmark year for technology and digitisation in India. The Union Budget indicates growing prioritisation of these areas. For instance, the Digital India programme has been allotted Rs 4,795.24 crore, the allocation to the Ministry of Electronics and IT has nearly doubled, and there is a 1,000 per cent increase in the funding for the Artificial Intelligence and Digital Intelligence Unit. But something crucial is amiss.

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    What is the issue?

    • Budget has deep discord between pace of the digitisation and legal policy: Many of the initiatives announced with the budget reinforce the deep discord between the pace of digitisation efforts, and the implementation of effective legal frameworks to strengthen privacy and cybersecurity.

    Budget

    What is Anonymised data?

    • Anonymised data includes data that does not contain Personally Identifiable Information (PII) like name, age, phone number, address, etc., or data from which PII has been removed.

    Analysis: Privacy deficit in India

    • New National Data Governance Policy: A new National Data Governance Policy is going to be introduced to enable access to anonymised data. However, several studies have demonstrated the ease with which anonymised data can be reverse-engineered to identify individuals. Current anonymisation techniques are inadequate and do not guarantee privacy protection.
    • For instance: A study in 2019 was able to accurately reidentify 99.98 per cent of Americans in an anonymised dataset, including information held by the US government on more than 11 million people.
    • Shortfall in Draft Digital Data Protection Bill, 2022: The current Draft Digital Data Protection Bill, 2022, falls short and fails to incorporate safeguards from previous rounds of consultations and even earlier iterations of the Bill.
    • For instance: The 2021 draft imposed a penalty for the intentional reidentification of an individual’s anonymized personal information. This provision has been done away with, amplifying concerns around insufficient limitations and safeguards for privacy.
    • No effective legislative safeguards to prevent access to personal information: The budget also proposes privacy-invasive changes to the Income Tax search and seizure provisions in view of the increased use of technology and digitization. IT officials could seek the assistance of experts to access digital devices and encrypted data. Such broad authorizations are bound to increase the scope for arbitrariness and misuse.

    Budget

    What issues need to be addressed for expanding the scope of DigiLocker?

    • The budget proposes expanding the scope of DigiLocker. For this measure to truly serve the objective of “Trust Based Governance”, two issues need to be addressed:
    • Strengthening of the cybersecurity infrastructure: Strengthening of the cybersecurity infrastructure, including implementation of the long-awaited National Cyber Security Strategy, to inspire people’s trust, and potentially avert situations like the one in 2020 where 3.8 crore DigiLocker accounts were compromised.
    • Preventing scope creep of Aadhaar: Prevent the continuing scope creep of Aadhaar, which is increasingly being made mandatory not only to avail services and benefits but also to exercise fundamental rights such as voting. The negative human rights impact of the forced, widespread use of Aadhaar has been well-documented.

    Did you know?

    • DigiLocker, a government-run cloud-based platform for storing, sharing, and verifying documents and certificates, to make it a one-stop solution of reconciliation and updating of identity and addresses with Aadhaar as foundational identity.

    Budget

    Conclusion

    • The World Economic Forum’s Global Cybersecurity Outlook 2023 finds that data privacy and cybersecurity regulations are effective for reducing cyber risks. Many new laws have been assured this year on data protection, telecom, internet governance and cybersecurity. As the country kickstarts its G20 presidency and prepares to be a leader in this space, we would do well to prioritise the development of exemplary, rights-respecting privacy and cybersecurity regimes.

    Mains question

    Q. For the potential of anonymised data to be unleashed without jeopardising people’s privacy, India first needs a robust data protection law. Discuss.

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  • India’s Digital Public Infrastructure (DPI)

    Digital

    Context

    • Public infrastructure has been a cornerstone of human progress. The monopolisation of public infrastructure, which plagued previous generations, has manifested itself in the centralised nature of today’s digital infrastructure. Digital Public Infrastructure (DPI) can fulfil this need, though it faces several challenges.

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    What is the issue?

    • There is a disturbing trend of the weaponization of data and technology or Digital Colonisation (Hicks, 2019) resulting in a loss of agency, sovereignty and privacy.
    • Therefore, proactively deliberating on how to build good DPI is key to avoiding such challenges.

    What Digital Public Infrastructure (DPI) is and what it does?

    • Three foundational sets DPIs mediate the flow of people, money and information.
    • First, the flow of people through a digital ID System.
    • Second, the flow of money through a real-time fast payment system.
    • Third, the flow of personal information through a consent-based data sharing system to actualise the benefits of DPIs and to empower the citizen with a real ability to control data.
    • These three sets become the foundation for developing an effective DPI ecosystem.

    DPI in India

    • India, first country to develop all three foundational DPIs: India through India Stack became the first country to develop all three foundational DPIs digital identity (Aadhar), real-time fast payment (UPI) and a platform to safely share personal data without compromising privacy (Account Aggregator built on the Data Empowerment Protection Architecture or DEPA)
    • Techno-legal regulatory frameworks in India: Techno-legal regulatory frameworks are used to achieve policy objectives through public-technology design.
    • For example: India’s DEPA offers technological tools for people to invoke the rights made available to them under applicable privacy laws. Framed differently, this techno-legal governance regime embeds data protection principles into a public-technology stack.
    • DPI most feasible model: DPI has emerged as the most feasible model due to its low cost, interoperability and scalable design, and because of its safeguards against monopolies and digital colonisation.

    Digital

    Do you know “India Stack”?

    • India Stack is a set of (application programming interface) APIs that allows governments, businesses, startups and developers to utilize a unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless, and cashless service delivery.
    • The Open API team at iSPIRT has been a pro-bono partner in the development, evolution, and evangelization of these APIs and systems.

    How DPIs constitute the backbone of a country’s digital infrastructure?

    • Facilitate seamless public service delivery: These layers interface with each other to create an ecosystem that facilitates seamless public service delivery and allows businesses to design novel solutions on top of the DPI layers.
    • Enables the creation of Open Networks as not seen before: India is now developing such open networks for credit (Open Credit Enablement Network), commerce (Open Network for Digital Commerce), Open Health Services Network (UHI) and many more.
    • Generate network effects: When DPIs are integrated, they can generate network effects to create these open networks for various sectors.

    Digital

    For India’s DPI success to become a worldwide revolution, three types of institutions must be built

    • An independent DPI steward institution: It is important to have a governance structure that is agile and responsive. A multiparty governance process through independent DPI institutions will be accountable to a broad range of stakeholders rather than be controlled by a single entity or group. This can build trust and confidence in DPI. India has created the Modular Open-Source Identity Platform (MOSIP), adopted by nine nations and with already more than 76 million active users.
    • Need to develop global standards through a multilateral dialogue led by India: If standards originating from developed nations were transplanted to an emerging economies’ context without deferring to their developmental concerns, smaller countries would simply be captive to dominant technology players. Additionally, without these standards, Big Tech would likely engage in regulatory arbitrage to concentrate power.
    • Sustainable financing models: Finally, we need to develop sustainable financing models for developing DPI for the world. Currently backed by philanthropic funding, such models are at risk of becoming a tool of philanthropic competition and positioning.

    Notes for answer writing

    • In the twenty-first-century, technological innovation has created a tempest of ideological, geographical and economic implications that pose new challenges.
    • The monopolisation of public infrastructure, which plagued previous generations, has manifested itself in the centralised nature of today’s digital infrastructure.
    • It is increasingly evident that the world needs a third type of public infrastructure, following modes of transport such as ports and roads, and lines of communication such as telegraph or telecom but with open, democratic principles built in.
    • Built on top of public infrastructure, democratic countries with largely free markets have fostered public and private innovation and, therefore, generated considerable value creation in societies.
    • However, like in the case of physical infrastructure, it is important that DPIs not succumb to monopolisation, authoritarianism and digital colonisation.

    Digital

    Conclusion

    • The world needs a new playbook for digital infrastructure that mediates the flow of people, money and information. This will facilitate countries looking to digitally empower their citizens. They can then rapidly build platforms that address the specific needs of people, while ensuring people are able to trust and use the platform – without fear of exclusion or exploitation.

    Mains question

    Q. What Digital Public Infrastructure (DPI) is and what it does? What can be done for India’s DPI success to become a worldwide revolution?

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  • India-US Space Cooperation

    cooperation

    Context

    • India and the United States agreeing to advance space collaboration in several areas, under the ‘initiative on critical and emerging technology’ umbrella, including human space exploration and commercial space partnership, comes at a crucial time for both countries. This follows from the eighth meeting of the U.S.-India Civil Space Joint Working Group (CSJWG), that was held on January 30-31, 2023.

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    Limiting factors in India-U.S. space cooperation

    • Mismatch in the two nations interests in outer space: The first structural factor that limits long-term India-U.S. space cooperation is the mismatch in the two nations interests in outer space.
    • American ambitions beyond earth orbits: Although the U.S. and its partners stress the importance of maintaining capabilities in low-earth orbit, their ambitions are firmly set on the moon.
    • India’s current focus is on increasing its satellite launch capabilities: India’s scientific community focuses on building the nation’s capability in and under earth orbits. The Gaganyaan human space flight programme hopes to sustain India’s human presence in space for the long term. This is not to say that India does not aim for the moon, Mars or beyond. But India’s top priority is to substantially increase its satellite and launch capabilities in earth orbits and catch up with other spacefaring nations such as China.
    • The asymmetry in capabilities: The U.S. has the highest number of registered satellites in space. It also has a range of launch vehicles serving both commercial and national-security needs.
    • Private sector, for instance: Private entity SpaceX, for example, managed to achieve a record 61 launches in 2022, far higher than the number of launches undertaken by any other commercial entity or country. The American private sector has also assumed the challenge of replacing the International Space Station by 2030 with many smaller stations.
    • The greatest challenge for India here is lack of capacity: The country has just over 60 satellites in orbit and cannot undertake double-digit launches annually. The Indian government also opened the space industry to the private sector only in 2020. Since the U.S. already has an extensive network of partners for space cooperation, it has few technical incentives to cooperate with India.
    • Disagreements on govern space activities: Compounding these problems are disagreements on how best to govern space activities on the moon and other celestial bodies. Even though countries have a mindset to collaborate, the structural factors overpower diplomatic incentives to pursue long-term cooperation.

    cooperation

    Have you read about “NISAR”?

    • NISAR has been built by space agencies of the US and India under a partnership agreement signed in 2014.
    • The 2,800 kilograms satellite consists of both L-band and S-band synthetic aperture radar (SAR) instruments, which makes it a dual-frequency imaging radar satellite.
    • While NASA has provided the L-band radar, GPS, a high-capacity solid-state recorder to store data, and a payload data subsystem, ISRO has provided the S-band radar, the GSLV launch system and spacecraft.
    • Another important component of the satellite is its large 39-foot stationary antenna reflector.
    • Made of a gold-plated wire mesh, the reflector will be used to focus the radar signals emitted and received by the upward-facing feed on the instrument structure.

    cooperation

    Some novel solutions

    • Sustained engagement: The standard solution to induce long-term cooperation is to sustain the engagement between academics, the private sector and state-led entities in the two countries. Sustained engagement could also take the form of collaborating on highly specialised projects such as the NASA-ISRO Synthetic Aperture Radar (NISAR) mission.
    • Cooperation and collaboration between state and private entities: One form of cooperation is a partnership between state and private entities; or, as agreed in the most recent meeting, a convention of American and Indian aerospace companies to advance collaboration under the National Aeronautics and Space Administration’s (NASA) Commercial Lunar Payload Services (CLPS) programme. Such an arrangement could be taken further.
    • Reducing dependence: India could send its astronauts to train at American private companies. This could help India reduce its dependence on Russia while ISRO builds its own astronaut training centre.
    • Government-owned New Space India Limited: Another novel arrangement could be a consortium led by the government-owned New Space India Limited which involves private companies in the U.S. This setup could accelerate India’s human spaceflight programme and give the U.S. an opportunity to accommodate Indian interests in earth orbits.

    Conclusion

    • The US and India have taken significant strides in advancing the private space sector. Together, these endeavors have the capability to shape and impact U.S. and Indian space policies and programmes over the next decade.

    Mains question

    Q. The US and India have taken significant strides in space cooperation. Discuss the limiting factors and suggest probable solutions.

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  • India’s Agricultural Farm Exports data expected to reach a new high

    export

    India’s agricultural exports are poised to scale a new peak in the financial year ending March 31, 2023. But so are imports, bringing down the overall farm trade surplus.

    Agriculture trade in a nutshell

    • India’s agricultural exports are expected to reach a new high in FY 2022-23.
    • The value of farm exports from April-December 2022 was 7.9% higher than the same period of the previous year, totalling $39 billion.
    • Imports of agricultural produce have also grown 15.4% from $24.1 billion in April-December 2021 to $27.8 billion in April-December 2022, resulting in a shrinking of the overall farm trade surplus.
    • As a result, there has been a further shrinking of the surplus on the farm trade account.

    Note: This newscard provides useful insights regarding agricultural exports-import balance. Aspirants are not advised to memorize the numbers but imbibe the trend.

    Drivers of Exports

    The two big contributors to India’s agri-export growth have been rice and sugar.

    (1) Rice

    • India in 2021-22 shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion.
    • That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.
    • In the current fiscal, the growth has been primarily led by basmati rice.
    • Its exports have gone up by 40.3% in value (from $2.38 billion in April-December 2021 to $3.34 billion in April-December 2022).
    • The corresponding increases have been less for non-basmati exports: 3.3% in value ($4.51 billion to $4.66 billion) and 4.6% in quantity (12.60 mt to 13.17 mt).

    (2) Sugars

    • Sugar exports hit a record value of $4.60 billion in 2021-22, as against $2.79 billion, $1.97 billion, $1.36 billion, and $810.90 million in the preceding four fiscals.
    • This fiscal has seen a further surge of 43.6%, from $2.78 billion in April-December 2021 to $3.99 billion in April-December 2022.
    • India exports of rice and sugar are well on course to touch, if not top, $11 billion and $6 billion respectively in 2022-23.

    Key imports

    More than a general export slowdown, it’s the growth in imports that should be cause for concern.  This has come mainly from three commodities-

    (1) Edible oils

    • The first is vegetable oils, whose imports shot up from $11.09 bn in 2020-21 to $18.99 bn in 2021-22.
    • Imports now account for over 60% of the country’s estimated 22.5-23 mt annual oil consumption.

    (2) Cotton

    • India has turned from a net exporter to a net importer of cotton.
    • India’s cotton exports reached an all-time-high of $4.33 bn back in 2011-12.
    • It remained at reasonably high levels until 2013-14 ($3.64 bn), before plunging to $1.62 bn by 2016-17 and $1.06 bn in 2019-20.
    • There was a recovery thereafter to $1.90 bn in 2020-21 and $2.82 bn in 2021-22.
    • But during this fiscal, imports have also soared from $414.59 million to $1.32 billion for the same period.

    Policy implications

    export

    • It can be seen how closely India’s farm performance is linked to international commodity prices.
    • The UN Food and Agriculture Organization’s (FAO) Food Price Index — having a base value of 100 for the 2014-16 period — averaged 122.5 points in 2012-13 and 119.1 points in 2013-14.
    • Those were the years when India’s agri-exports were at $42-43 billion. As the index crashed to 90-95 points in 2015-16 and 2016-17, so did exports to $33-34 billion.
    • The exports recovery in 2020-21 and 2021-22 happened along with — rather, on the back of — rising global prices and the FAO index averaging 102.5 points and 133 points in the two years.

    Inferences from this trend

    Ans. India’s farm exports will slow down in the months ahead.

    • Moreover, this could be accompanied by increased imports, as was the case from 2014-15 to 2017-18.
    • In the event, the focus of policymakers too, may have to shift from being pro-consumer (to the extent of banning/ restricting exports) to pro-producer (providing tariff protection against unbridled imports).

    Way forward

    • The government needs to do something about cotton and edible oils.
    • India’s cotton production has declined from the high of 398 lakh bales in 2013-14 to a 12-year low of 307.05 lakh bales in 2021-22.
    • Clearly, the effects of not allowing new genetic modification (GM) technologies after the first-generation Bt cotton are showing, and impacting exports as well.
    • A proactive approach is required in edible oils as well, where planting of GM hybrid mustard has been permitted with great reluctance — and which is now a matter before the Supreme Court.

     

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  • Eastern Rajasthan Canal Project (ERCP)

    canal

    Rajasthan has brought up the issue of the Eastern Rajasthan Canal Project or ERCP before the Prime Minister.

    Why in news?

    • The Chief Minister has said that it is not possible for the state government to bear the estimated project cost of around Rs 40,000 crore by itself.
    • The state wants the Centre to declare this as a national project so that the cost-sharing ratio between the Centre and the state becomes 90:10.

    Eastern Rajasthan Canal Project (ERCP)

    • ERCP was incepted with the aim of providing water to the drought-prone areas of the state.
    • It aims to harvest surplus water available during the rainy season in rivers in southern Rajasthan, such as the Chambal and its tributaries Kunnu, Parvati, and Kalisindh.
    • The project consists of the construction of two canals:
    1. Chambal Canal (which originates from the Chambal River)
    2. East Rajasthan Canal (which originates from the Mahi River)
    • The ERCP is expected to irrigate about 3.4 million hectares of agricultural land in Rajasthan and Madhya Pradesh states.
    • It is estimated to cost about Rs 51,000 crore and was expected to be completed by 2021.
    • The project was expected to benefit about 2.6 million farmers in Rajasthan and an additional 2.4 million in Madhya Pradesh.

    When was the ERCP conceived?

    • In the state Budget for 2017-18, then Rajasthan government had said that the ERCP will help fulfil the long-term irrigation and drinking water needs of 13 districts: Jhalawar, Baran, Kota, Bundi, Sawai Madhopur, Ajmer, Tonk, Jaipur, Karauli, Alwar, Bharatpur, Dausa, and Dholpur.
    • The project was approved by the Central Water Commission in 2017.
    • The state government had sent a proposal to the central government to declare ERCP as a project having national importance.

     

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    https://indianexpress.com/article/explained/ercp-rajasthan-rivers-project-ashok-gehlot-narendra-modi-8440734/

  • Scientists discover new ‘Quasicrystals’

    quasicrystals

    Scientists have discovered a new type of quasicrystal, one with 12-fold symmetry, in the Sand Hills of north central Nebraska, USA.

    What is a Quasicrystal?

    • Quasicrystal is essentially a crystal-like substance.
    • However, unlike a crystal, in which atoms are arranged in a repeating pattern, a quasicrystal consists of atoms that are arranged in a pattern that doesn’t repeat itself regularly.
    • For the longest time, physicists believed every crystalline arrangement of atoms must have a pattern that repeats itself perfectly over and over again.
    • However, this changed in 1982, when material scientist Dan Shechtman discovered crystal structures that are mathematically regular, but that do not repeat themselves.

    How are they formed?

    • Electrical discharge triggered quasicrystal formation in the recent finding.
    • It’s also the first time that researchers have found a quasicrystal somewhere other than meteorites or the debris from nuclear blasts.

    Applications of quasicrystals

    • There is no major commercial applications yet exploit properties of the quasicrystalline state directly.
    • Quasicrystals form in compounds noted for their high strength and light weight, suggesting potential applications in aerospace and other industries.
    • They can be used in surgical instruments, LED lights and non-stick frying pans.

     

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