The Union Finance Minister has heaped praises on Goods and Services Tax (GST) Council.
Why in news?
FM was reacting to a case made by Fifteenth Finance Commission chief N.K. Singh to set up a Fiscal Council with the Centre and States.
This is another such recommended body to act as a bridge between the GST Council and the Finance Commission.
What is the GST Council?
The GST regime came into force after the 101st Constitutional Amendment was passed by both Houses of Parliament in 2016.
The GST Council – a joint forum of the Centre and the states — was set up by the President as per Article 279A (1) of the amended Constitution.
The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.
Why was the Council set up?
The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
It also decides on various rate slabs of GST.
For instance, an interim report by a panel of ministers has suggested imposing 28 per cent GST on casinos, online gaming and horse racing.
A decision on this will be taken at the Council meeting.
Recent reforms
The ongoing meeting is the first since a decision of the Supreme Court in May this year, which stated recommendations of the GST Council are not binding.
The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST .
Recommendations of the Council are the product of a collaborative dialogue involving the Union and States.
This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.
Liquid Nano Urea, a fertilizer patented and sold by the Indian Farmers Fertiliser Cooperative Ltd. (IFFCO), has been approved by the government for commercial use because of its potential to substantially reduce the import bill, but several experts have questioned the science underlying its efficacy.
What is Liquid Nano Urea (LNU)?
Urea is chemical nitrogen fertiliser, white in colour, which artificially provides nitrogen, a major nutrient required by plants.
LNU is essentially urea in the form of a nanoparticle.
It is sprayed directly on the leaves and gets absorbed by the plant.
Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are absorbed by the stomata, pores found on the epidermis of leaves.
According to IFFCO, liquid nano urea contains 4 per cent total nitrogen (w/v) evenly dispersed in water.
The size of a nano nitrogen particle varies from 20-50 nm. (A nanometre is equal to a billionth of a metre.)
The liquid nano urea produced by IFFCO Limited comes in a half-litre bottle priced at Rs 240, and carries no burden of subsidy currently.
By contrast, a farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea.
According to IFFCO, a bottle of the nano urea can effectively replace at least one bag of urea.
How efficient is LNU?
While conventional urea has an efficiency of about 25 per cent, the efficiency of liquid nano urea can be as high as 85-90 per cent.
Conventional urea fails to have the desired impact on crops as it is often applied incorrectly, and the nitrogen in it is vaporized or lost as a gas.
A lot of nitrogen is also washed away during irrigation.
Liquid nano urea has a shelf life of a year, and farmers need not be worried about “caking” when it comes in contact with moisture.
Significance of LNU
This patented product is expected to not only substitute imported urea, but to also produce better results in farms.
Apart from reducing the country’s subsidy bill, it is aimed at reducing the unbalanced and indiscriminate use of conventional urea.
It will help increase crop productivity, and reduce soil, water, and air pollution.
Why in news now?
Plants need nitrogen to make protein and they source almost all of it from soil bacteria which live in a plant’s roots and have the ability to break down atmospheric nitrogen, or that from chemicals such as urea into a form usable by plants.
Chemically packaged urea is 46% nitrogen, which means a 45-kg sack contains about 20 kg of nitrogen.
Contrastingly, nano urea sold in 500-ml bottles has only 4% nitrogen (or around 20 g).
How this can compensate for the kilograms of nitrogen normally required puzzles scientists.
The government plans to start a GPS-based toll system in place of FASTag to ensure seamless payment and vehicle movement on national highways.
Why in news?
The move would end the role of toll plazas across the country.
How will a GPS-based tolling system work?
Vehicles will be fitted with an electronic device that can track their movement.
Highways will be geo-fenced, creating virtual boundaries. The system will use GPS or radio frequency identification technologies.
The software will recognize when a mobile device enters or leaves a particular area, and toll will be charged based on the distance travelled at the highway’s exit point.
As the system is based on sensors, there will be no need to stop at toll plazas.
Vehicles and users must be registered with the GPS toll system, linked to bank accounts that will be used to transfer toll payments.
What are FASTags?
FASTags are stickers that are affixed to the windscreen of vehicles and use Radio Frequency Identification (RFID) technology to enable digital, contactless payment of tolls without having to stop at toll gates.
RFID uses electromagnetic fields to automatically identify and track tags attached to objects.
The tags are linked to bank accounts and other payment methods.
As a car crosses a toll plaza, the amount is automatically deducted, and a notification is sent to the registered mobile phone number.
Issues with FASTags
Since the card is affixed to the windscreen, it can be easily misplaced, damaged or stolen.
The existing FASTag system, though faster than cash payments, still requires vehicles to stop at toll booths to enable reading of tags.
Also, the vehicle must wait till the gate is opened.
It has been observed that sometimes the toll fee is deducted twice from user account. Mostly, this happens due to a technical glitch.
Some card readers take longer time to read and register. Hence the purpose of saving time is itself defied.
Still, the wait time at toll booths is much more than the 30 seconds that was promised earlier.
Also, it has not helped reduce the number of toll booths.
Hence the benefits of using FASTag far outweigh the challenges.
Is FASTags a total failure?
Usage has increased since FASTag was made mandatory in 2021 after its launch in 2015.
Penetration has grown from nearly 16% in FY18 to 96.3% in FY22.
Total toll collection in FY18 was ₹21,948 crore, including ₹3,532 crore collected through FASTags.
In FY22, toll collection through FASTags increased sharply to ₹33,274 crore out of total toll collection of ₹34,535 crore.
How will GPS benefit highway users?
GPS tolling uses satellite-based navigation and requires no halting.
Also, vehicles can be charged only for their actual travel on a highway stretch.
Currently, toll is paid at toll booths which is fixed between two points of tolling and a user does not get any concession even if he/she exits before completing the full run between two toll plazas.
The new system should reduce the toll amount charged for travel on highways.
What is the progress so far on GPS tolling?
The Union road ministry has amended the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allowing for the collection of toll based on distance travelled on national highways.
This will facilitate the introduction of GPS tolling.
First trials may be done on the under-construction Mumbai-Delhi expressway which will be geo-fenced.
Also the cost of GPS devices needs to be considered at very beginning.
Way forward
The system needs a proper legislative framework, and a full launch is still years away. The government intends to introduce it in phases.
The road ministry is expected to amend the Motor Vehicles Act and create rules to facilitate GPS tolling as well as to penalize offenders.
Moreover, GPS will come with its own set of complications on calculating differential tolls.
Regulations and framework for these need to be developed first.
India’s statistics ministry generates only one high-frequency gauge of economic activity. And that lone barometer, the index of industrial production (IIP), is completely broken.
What is IIP?
The Index of Industrial Production (IIP) is an index that indicates the performance of various industrial sectors of the Indian economy. It is a composite indicator of the general level of industrial activity in the economy.
How is IIP calculated?
IIP is calculated as the weighted average of production relatives of all the industrial activities. In the mathematical calculation Laspeyre’s fixed base formula is used.
What are the Core Industries in India?
The main or the key industries constitute the core sectors of an economy.
In India, there are eight sectors that are considered the core sectors.
They are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.
Which has highest weightage in IIP?
The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
Why is IIP important?
IIP is the only measure on the physical volume of production. It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc. for policy-making purposes. IIP remains extremely relevant for the calculation of the quarterly and advance GDP estimates.
Who releases IIP data?
The IIP data is compiled and published by CSO every month.
The IIP index data, once released, is also available on the PIB website.
How useful are monthly IIP figures to draw a conclusion about India’s growth?
IIP figures are monthly data and as such it keeps going up and down.
In fact, the release calls them “quick estimates” because they tend to get revised after a month or two.
IIP Index Components
Mining, manufacturing, and electricity are the three broad sectors in which IIP constituents fall.
The relative weights of these three sectors are 77.6% (manufacturing), 14.4% (mining) and 8% (electricity).
Electricity, crude oil, coal, cement, steel, refinery products, natural gas, and fertilizers are the eight core industries that comprise about 40 per cent of the weight of items included in the IIP.
Basket of products
Primary Goods (consisting of mining, electricity, fuels and fertilisers)
This is the world’s first intercontinental translocation of a carnivore. It is even more unique because this is the first time cheetahs has reintroduced in an unfenced protected area (PA).
The Government is preparing to translocate the first batch from South Africa and Namibia to Kuno National Park in Madhya Pradesh.
About Asiatic Cheetah
Feature: Cheetah, the world’s fastest land animal was declared extinct in India in 1952.
Status: The Asiatic cheetah is classified as a “critically endangered” species by the IUCN Red List, and is believed to survive only in Iran.
Reintroduction: It was expected to be re-introduced into the country after the Supreme Court lifted curbs for its re-introduction.
Extinction: From 400 in the 1990s, their numbers are estimated to have reached to 50-70 today, because of poaching, hunting of their main prey (gazelles) and encroachment on their habitat.
What caused the extinction of cheetahs in India?
Reduced fecundity and high infant mortality in the wild
Inability to breed in captivity
Sport hunting
Bounty killings
Why reintroduce Cheetahs?
Climate Change Mitigation: It will enhance India’s capacity to sequester carbon through ecosystem restoration activities in cheetah conservation areas and thereby contribute towards the global climate changemitigation goals.
Reintroductions of large carnivores have increasingly been recognized as a strategy to conserve threatened species and restore ecosystem functions.
The cheetah is the only large carnivore that has been extirpated, mainly by over-hunting in India in historical times.
India now has the economic ability to consider restoring its lost natural heritage for ethical as well as ecological reasons.
Why was Kuno National Park chosen for Cheetah Reintroduction?
Both Cheetah and Asiatic Lions share the same habitats semi-arid grasslands and forests that stretch across Gujarat, Rajasthan, and Madhya Pradesh.
The rainfall, temperature, and altitude in the Sheopur district, where Kuno is situated, are equivalent to those of South Africa and Namibia.
In addition, Kuno contains a diverse population of prey species, including peafowl, wild pigs, gazelle, langurs, chital, sambhar, and nilgai.
What are the Other Recent Initiatives for Wildlife Conservation in India?
Legal Framework:
Wildlife (Protection) Act, 1972
Environment Protection Act, 1986
The Biological Diversity Act, 2002
India’s Collaboration with Global Wildlife Conservation Efforts:
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
Convention on the Conservation of Migratory Species of Wild Animals (CMS)
The increasing cost of production and the increase in GST on apple cartons has triggered protests in Himachal Pradesh’s apple farmers.
What is the issue?
The cost of production of agricultural items increased substantially, denying remunerative prices to the poor and marginal apple farmers.
Reason for crisis in apple farming
Increase in cost of production: The input cost of fertilizers, insecticides, and fungicides has risen in the last decade by 300%, as per some estimates. The cost of apple cartons and trays and packaging has also seen a dramatic rise. In the last decade, the cost of a carton, for instance, has risen from about ₹30 to ₹ The cost borne to market the Produce has also risen.
High taxation: The increase in the Goods and Services Tax on cartons from 12% to 18%. This was done to ensure that farmers are forced to sell their produce to big buyers instead of selling it in the open market. Just as the three farm laws were designed on the pretext of getting rid of the middlemen, the argument here was that commission agents, who fleece the apple farmers, will be forced to exit the picture. But this leaves the apple growers at the mercy of large giants in procurement, who have precedence of even deciding the procurement price.
No MSP in Himachal: Unlike in Jammu and Kashmir, where there is a minimum rate for procurement, there is no such law in Himachal. The government also does not seem prepared to bring in such a law. The farmers are demanding that legally guaranteed procurement at a Minimum Support Price (C2+50%) should be ensured to improve apple farmers condition.
How to address this issue?
Need for a regulator: What is required is an independent body that is duly supported and trusted by the farmers. Such a body should have representatives of apple growers, market players, commission agents and the government. This must be a statutory body that is also given the task of conducting research in the apple economy.
Directional efforts: Issues such as high input cost, lack of fair price and unavailability of infrastructure such as cold chains should be addressed.
Required research to support improvements in apple farming systems: Over the past few decades, the priorities in research projects and government policies on apple production were focused on the improvement of tree productivity and product quality. This was important to enhance the net incomes and living standards of apple producers in India. This research should be further enhanced by introducing European varieties in India.
Focussing on Alternative Market Channels: The alternative market channel works on the principles of decentralisation and direct-to-home delivery. The idea is to create smaller, less congested markets in urban areas with the participation of farmers’ groups and Farmer Producer Companies (FPCs) so that farmers have direct access to consumers.
Logistics transformation: To sustain the demand for agricultural commodities, investments in key logistics must be enhanced. Moreover, e-commerce and delivery companies and start-ups need to be encouraged with suitable policies and incentives. The small and medium enterprises, running with raw materials from the agriculture and allied sector or otherwise, also need special attention so that the rural economy doesn’t collapse.
Conclusion
Agriculture is dying, not as in the production of food but as a desirable profession. One bad yield, whether due to errant rains, pests, etc., and most farmers have no buffer available. The last point worth considering is that food and agriculture are not the same. Expenditures on food span the value-add, including processing, preparation, service in restaurants, etc. Farmers in India merely get paid for their product and not for the food we eat.
Mains question
Q. Do you think there is urgent need to extend MSP to horticulture sector also? Discuss what can be done to solve the apple farmer crisis in Himachal Pradesh.
Indian Railways had successfully completed trials of the second generation Vande Bharat train that will come with enhanced passenger comfort and safety features.
What is Vande Bharat Express?
The Vande Bharat Express is a semi-high-speed train designed, developed, and built by the Integral Coach Factory (ICF).
Presently there are only two Vande Bharat trains that are running — Delhi to Varanasi and Delhi to Katra.
Key Features
The current Vande Bharat trains have seating only in two classes — chair car and executive chair car. But Railways is planning to upgrade it.
The trains have fully sealed gangways for a dust-free environment, modular bio-vacuum toilets, rotating seats in Executive Class, personalized reading lights, automatic entry/exit doors with sliding footsteps, diffused LED lighting, mini pantry, and sensor-based interconnecting doors in each coach.
They are self-propelled trains that do not require an engine. This feature is called a distributed traction power system.
Benefits of Vande Bharat Trains
Cuts Travel Time Drastically
Energy Efficient
Reduce Turnaround Time
Faster Acceleration and Deceleration among others.
Japanese scientists have devised a system that can create cyborg cockroaches that are part insect and part machine.
Cyborg cockroaches
Cyborg cockroaches’ movements are controlled by tiny integrated circuits.
They will be able to conduct surveillance in procedures like urban search and rescue, environmental monitoring and inspection of areas dangerous to humans.
By equipping the cockroaches with small wireless control modules, handlers will be able to control the insect’s legs remotely for long periods of time.
The team used Madagascar cockroaches, which are not only the largest species of cockroaches, reaching an estimated 6 cm, but are also known for making hissing sounds when disturbed, which they make by expelling air from the openings on their back.
How is it powered?
The researchers also designed the system to be rechargeable, by powering it with a super thin 0.004 mm solar cell module that is installed on the dorsal side of the cockroach’s abdomen.
This was done to ensure that the battery remains charged and the cockroach can be controlled for long periods of time, while simultaneously ensuring that the movement remains unhindered.
Bengaluru floods are alarming us to go for robust disaster management strategies.
What is flood?
Floods are the most frequent type of natural disaster and occur when an overflow of water submerges land that is usually dry. Floods are often caused by heavy rainfall, rapid snowmelt or a storm surge from a tropical cyclone or tsunami in coastal areas.
Causes of frequent urban floods
Natural
Meteorological Factors:Heavy rainfall, cyclonic storms and thunderstorms causes water to flow quickly through paved urban areas and impound in low lying areas.
Hydrological Factors: Overbank flow channel networks, occurrence of high tides impeding the drainage in coastal cities.
Climate Change: Climate change due to various anthropogenic events has led to extreme weather events.
Anthropological
Unplanned Urbanization:Unplanned Urbanization is the key cause of urban flooding. A major concern is blocking of natural drainage pathways through construction activity and encroachment on catchment areas, riverbeds and lakebeds.
Destruction of lakes: A major issue in India cities. Lakes can store the excess water and regulate the flow of water. However, pollution of natural urban water bodies and converting them for development purposes has increased risk of floods.
Unauthorised colonies and excess construction: Reduced infiltration due paving of surfaces which decreases ground absorption and increases the speed and amount of surface flow
Poor Solid Waste Management System: Improper waste management system and clogging of storm-water drains because of silting, accumulation of non-biodegradable wastes and construction debris.
Drainage System:Old and ill maintained drainage system is another factor making cities in India vulnerable to flooding.
Irresponsible steps: Lack of attention to natural hydrological system and lack of flood control measures.
Impact of the devastation due to floods:
On economy: Damage to infrastructure, roads and settlements, industrial production, basic supplies, post disaster rehabilitation difficulties etc.
On human population and wildlife:Trauma, loss of life, injuries and disease outbreak, contamination of water etc.
On environment:Loss of habitat, tree and forest cover, biodiversity loss and large scale greenery recovery failure.
On transport and communication: Increased traffic congestion, disruption in rail services, disruption in communication- on telephone, internet cables causing massive public inconvenience.
Solutions for effective flood management
Improved flood warning systems: effective flood warning systems can help take timely action during natural calamities and can save lives. Pre-planning can significantly reduce the effects of floods, giving people time to migrate to safer locations and stock up essentials.
Building flood-resilient housing systems: concreting floors can be very useful during floods. Houses should be water proofed and electric sockets should be placed at higher levels up the walls to reduce the chances of shocks.
Constructing buildings above flood levels: buildings should be constructed a metre above from the ground to prevent flood damage and evacuation during floods.
Resilience to Climate change: drastic climate changes have increased the frequency of natural disasters in many parts of the world. Governments should bring about environment-friendly policy level changes and eliminate the ones hazardous to the environment to tackle the problem of global warming.
Create wetlands and encourage reforestation: creating more and more wetlands can help soak up excessive moisture since wetlands act as sponges. Wooded areas can also slow down heavy water flow, minimizing the effects of floods. Reforesting upstream regions can significantly reduce the effects of flood damage.
Improve soil conditions: improper soil management, animal hooves, and machinery can make soil compacted. As a result, instead of holding water in and absorbing moisture, the water runs off immediately. Properly drained soil can absorb large amounts of rainwater and can prevent it from flowing into the rivers.
Installing flood barriers: these are flood gates designed to prevent the area behind the barrier from flooding. They can also be kept around buildings to keep floodwaters outside the boundary created.
Development of GIS– Geographical Information System (GIS) based National Database: for disaster management. GIS is an effective tool for emergency responders to access information in terms of crucial parameters for disaster-affected areas.
Developing a Federal flood management plan: with responsibilities of union and state clearly defined.
Creation of 2nd flood commission: (Rashtriya Barh Aayog, created in 1976) to study the flood situation in India under rising challenges of climate change and propose a national-level flood resilience and management plan.
Way forward
Resilience of people: The rapid transformation in rainfall characteristics and flooding patterns demand building people’s resilience.
Reconsider projects: Construction projects that impede the movement of water and sediment across the floodplain must be reconsidered.
Use of technology: At the same time, climate-imposed exigencies demand new paradigms of early-warning and response systems and securing livelihoods and economies.
Conclusion
We can learn to live with nature, we can regulate human conduct through the state and we can strategically design where we build. We need to urgently rebuild our cities such that they have the sponginess to absorb and release water without causing so much misery and so much damage to the most vulnerable of our citizens.
Mains question
Q. We need to urgently rebuild our cities such that they have the sponginess to absorb and release water. Discuss the statement in context of urban flood management strategy in India.
India ranks 132 out of 191 countries in the Human Development Index (HDI) 2021, after registering a decline in its score over two consecutive years for the first time in three decades.
What is Human Development Index (HDI)?
The HDI combines indicators of life expectancy, education or access to knowledge and income or standard of living, and captures the level and changes to the quality of life.
The index initially launched as an alternative measure to the gross domestic product, is the making of two acclaimed economists from Pakistan and India, namely Mahbub ul Haq and Amartya Sen.
It stresses the centrality of human development in the growth process and was first rolled out by the United Nations Development Programme in 1990.
Dimensions of the Human Development Index – HDI
The idea that progress should be conceived as a process of enlarging people’s choices and enhancing their capabilities is the central premise of the HDI.
Since its launch, the HDI has been an important marker of attempts to broaden measures of progress.
The HDI considers three main dimensions to evaluate the development of a country:
Long and healthy life
Education
Standard of living
Limitations of HDI
HDR has been always disputable and has caught the public-eye, whenever it was published. It has many reasons.
One of them is that the concept of human development is much deeper and richer than what can be caught in any index or set of indicators. Another argument is that its concept has not changed since 1990 when it was also defined in the first.
(1) An incomplete indicator
Human development is incomplete without human freedom and that while the need for qualities judgement is clear; there is no simple quantitative measure available yet to capture the many aspects of human freedom.
HDI also does not specifically reflect quality of life factors, such as empowerment movements or overall feelings of security or happiness.
(2) Limited idea of development
The HDI is not reflecting the human development idea accurately.
It is an index restricted to the socio-economic sphere of life; the political and civil spheres are in the most part kept separate.
Hence there is a sub-estimation of inequality among countries, which means that this dimension is not being taken into consideration appropriately.
(3) A vague concept
Concerning data quality and the exact construction of the index HDI is conceptually weak and empirically unsound.
This strong critic comes from the idea that both components of HDI are problematic. The GNP in developing countries suffers from incomplete coverage, measurement errors and biases.
The definition and measurement of literacy are different among countries and also, this data has not been available since 1970 in a significant number of countries.
(4) Data quality issues
The HDI, as a combination of only four relatively simple indicators, doesn’t only raise a questions what other indicators should be included, but also how to ensure quality and comparable input data.
It is logical that the UNDP try to collect their data from international organizations concentrating in collecting data in specific fields.
Quality and trustworthiness of those data is disputable, especially when we get the information from UN non-democratic members, as for example Cuba or China.
(5) A tool for mere comparison
The concept of HDI was set up mainly for relative comparison of countries in one particular time.
HDI is much better when distinguishing between countries with low and middle human development, instead of countries at the top of the ranking.
Therefore, the original notion was not to set up an absolute ranking, but let’s quite free hands in comparison of the results.
(6) Development has to be greener
The human development approach has not adequately incorporated environmental conditions which may threaten long-term achievements on human development. The most pervasive failure was on environmental sustainability.
However, for the first time in 2020, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
This is Planetary Pressures-adjusted HDI or PHDI. It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.
(7) Wealth can never equate welfare
Higher national wealth does not indicate welfare. GNI may not necessarily increase economic welfare; it depends on how it is spent.
For example, if a country spends more on military spending – this is reflected in higher GNI, but welfare could actually be lower.
Significance of HDI
It is one of the few multidimensional indices as it includes indicators such as literacy rate, enrollment ratio, life expectancy rate, infant mortality rate, etc.
It acts as a true yardstick to measure development in real sense.
Unlike per capital income, which only indicates that a rise in per capital income implies economic development; HDI considers many other vital social indicators and helps in measuring a nation’s well-being.
It helps as a differentiating factor to distinguish and classify different nations on the basis of their HDI ranks.
Way forward
Both sustainable development and poverty eradication are both long-term and urgent endeavours, requiring not only the gradual and substantial redirection of country policies but a rapid response to pressing problems.
Ideally, sustainable development could provide an overarching framework within which all sub-goals (eg poverty eradication, social equality, ecosystem maintenance, climate compatibility) are framed.
It is not a subset of development; it is development (in a modern world of resource limits).
Environmental issues are not one factor among many but the meta-context within which poverty and other goals are sought.
Investing more in public research could lead to technological solutions to poverty and sustainability problems becoming more rapidly and openly available.