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GS Paper: GS3

  • Green Hydrogen Policy

     

    The Ministry of Power has notified the first part of the National Hydrogen Mission policy on green hydrogen and green ammonia, aimed to boost production of hydrogen and ammonia using renewable energy.

    What is green hydrogen?

    • Green hydrogen is hydrogen gas produced through electrolysis of water.
    • It is an energy intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.

    Key takeaways of the Green Hydrogen Policy

    • The new policy offers 25 years of free power transmission for any new renewable energy plants set up to supply power for green hydrogen production before July 2025.
    • This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam.
    • It would not be required to pay any inter-state transmission charges.

    What are the incentives?

    • The government is set to provide a single portal for all clearances required for setting up green hydrogen production.
    • It will facilitate producers to transfer any surplus renewable energy generated with discoms for upto 30 days and use it as required.
    • The requirement of time bound clearances for these projects would spur investment while grid connectivity on priority will ease operational processes.
    • The energy plants set up to produce green hydrogen/ammonia would be given connectivity to the grid on a priority basis.
    • State DISCOMS may also procure renewable energy to supply green hydrogen producers but will be required to do so at a concessional rate.
    • Such procurement would also count towards a state’s Renewable Purchase Obligation (RPO) under which it is required to procure a certain proportion of its requirements from renewable energy sources.

    Facilities to boost export

    • Under the policy port authorities will also provide land at applicable charges to green hydrogen and green ammonia producers to set up bunkers near ports for storage prior to export.
    • Germany and Japan could be key markets for green hydrogen produced in India.

    Why such move?

    • The move is likely going to make it more economical for key users of hydrogen and ammonia such as the oil refining, fertiliser and steel sectors to produce green hydrogen for their own use.
    • These sectors currently use grey hydrogen or grey ammonia produced using natural gas or naphtha.

     

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  • Kerala plans to replace Mullaperiyar Dam

    Kerala plans to build a new dam to replace the 126-year-old Mullaperiyar dam in the Idukki district.

    Mullaperiyar Dam

    • It is a masonry gravity dam on the Periyar River in Kerala.
    • It is located on the Cardamom Hills of the Western Ghats in Thekkady, Idukki District.
    • It was constructed between 1887 and 1895 by John Pennycuick and also reached in an agreement to divert water eastwards to the Madras Presidency area.
    • It has a height of 53.6 m (176 ft) from the foundation, and a length of 365.7 m (1,200 ft).

    Operational issue

    • The dam is located in Kerala but is operated and maintained by Tamil Nadu.
    • The catchment area of the Mullaperiyar Dam itself lies entirely in Kerala and thus not an inter-State river.
    • In November 2014, the water level hit 142 feet for first time in 35 years.
    • The reservoir again hit the maximum limit of 142 feet in August 2018, following incessant rains in the state of Kerala.
    • Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among water managers across States.

    The dispute: Control and safety of the dam

    • Supreme court judgment came in February 2006, has allowed Tamil Nadu to raise the level of the dam to 152 ft (46 m) after strengthening it.
    • Responding to it, the Mullaperiyar dam was declared an ‘endangered’ scheduled dam by the Kerala Government under the disputed Kerala Irrigation and Water Conservation (Amendment) Act, 2006.
    • For Tamil Nadu, the Mullaperiyar dam and the diverted Periyar waters act as a lifeline for Theni, Madurai, Sivaganga, Dindigul and Ramnad districts.
    • Tamil Nadu has insisted on exercising the unfettered colonial rights to control the dam and its waters, based on the 1886 lease agreement.

    Rule of Curve issue

    • A rule curve or rule level specifies the storage or empty space to be maintained in a reservoir during different times of the year.
    • It decides the fluctuating storage levels in a reservoir.
    • The gate opening schedule of a dam is based on the rule curve. It is part of the “core safety” mechanism in a dam.
    • The TN government often blames Kerala for delaying the finalization of the rule curve.

     

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  • What are Participatory and Non-Participatory Funds?

    The amendment to Section 24 of the LIC Act, brought prior to commencing the IPO, segregated the previously single ‘Life Fund’ into the participatory and non-participatory fund.

    What are Participatory and Non-Participatory Funds?

    • Under a participatory policy, a policyholder can get a share of the profits of the company.
    • This is received as a bonus. Examples of such products offered by LIC include  Jeevan Labh and  Bachat Plus.
    • No such sharing of profits happens under non-participatory products, which under the LIC fold includes policies such as  Saral Pensionand  Nivesh Plus.
    • As all insurance companies do, LIC also reinvests premium monies that policyholders pay.
    • The profits or surplus that comes about, as a result, was till September last year held in one single fund. This was the Life Fund.
    • The surplus was divided in the 95:5 ratio between policyholders (in the form of bonuses) and shareholders (in the form of dividends).

    What has the Amendment changed?

    • But the amendment to Section 24 of the LIC Act has necessitated the segregation of the Life Fund into participatory and non-participatory funds, depending on the nature of the policies they support.
    • The amendment stipulates terms on how surplus is to be shared with respect to participatory and non-participatory funds.
    • As for non-participating funds, surplus from the non-participating business would be transferred to shareholders.
    • Surplus from participatory business, however, would be shared between policyholders and shareholders.

    How does this change impact the shareholder?

    • The change, especially the one that has enabled 100% of the surplus in non-participatory funds to flow to the shareholder, has led to a massive jump in the Indian Embedded Value, or IEV.
    • IEV is a measure of future cash flows in life insurance companies and the key financial gauge for insurers.
    • The embedded value will help establish the market valuation of LIC and determine how much money the government raises in the flotation.
    • That will be crucial for the government to help meet its divestment targets and keep its fiscal deficit in check.

    Why is it a risk, then?

    • LIC has stated in the document that a significant portion of its business premiums come from participating and single premium products.
    • It added, should the participating products generate lower than expected returns for policyholders, it could lead to increased surrenders.
    • This could also potentially bother their financial condition, operations, and cash flows.

     

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  • [pib] Extended Producers Responsibility on Plastic Packaging

    The Union Ministry of Environment, Forest, and Climate Change has notified the Guidelines on Extended Producers Responsibility on plastic packaging under Plastic Waste Management Rules, 2016.

    What is EPR?

    • Extended Producer Responsibility (EPR) means the responsibility of a producer for the environmentally sound management of the product (plastic packaging) until the end of its life.
    • India had first introduced EPR in 2011 under the Plastic Waste (Management and Handling) Rules, 2011, and E-Waste Management and Handling Rules, 2011.

    What are the new EPR rules for Plastic Waste?

    (A) Plastic packaging

    • The new EPR guidelines cover three categories of plastic packaging including:
    1. Rigid plastic
    2. Flexible plastic packaging of a single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags (including carrying bags made of compostable plastics), plastic sachet or pouches
    3. Multi-layered plastic packaging has at least one layer of plastic and at least one layer of material other than plastic.
    • It has also specified a system whereby makers and users of plastic packaging can collect certificates — called Extended Producer Responsibility (EPR) certificates — and trade in them.

    (B) Ineligible plastics for EPR

    • Only a fraction of plastic that cannot be recycled will be eligible to be sent for end-of-life disposals such as road construction, waste to energy, waste to oil, and cement kilns.
    • Only methods prescribed by the Central Pollution Control Board will be permitted for their disposal.

    Targets for recycling

    • In 2024, a minimum of 50% of their rigid plastic (category 1) will have to be recycled as will 30% of their category 2 and 3 plastic.
    • Every year will see progressively higher targets and after 2026-27, 80% of their category 1 and 60% of the other two categories will need to be recycled.
    • If entities cannot fulfill their obligations, they will on a “case by case basis” be permitted to buy certificates making up for their shortfall.

    Effects on non-compliance

    • Non-compliance, however, will not invite a traditional fine.
    • Instead, an “environmental compensation” will be levied, though the rules do not specify how much this compensation will be.

    Challenges in mandatory EPR

    There are several challenges faced by both producers and bulk consumers that hinder proactive participation.

    • Consumer awareness: Waste segregation has been the greatest challenge in India owing to the lack of consumer awareness.
    • Lack of compliance: The plastic producers do not wish to engage in the process holistically and take the effort to build awareness.
    • Large-scale involvement: The EPR doesn’t take into account the formalization of informal waste pickers, aggregators, and dismantlers.
    • Lack of recycling infrastructure: These challenges range from lack of handling capacity to illegitimate facilities in the forms of multiple accounting of waste, selling to aggregators, and leakages.

    Way forward

    • Tracking mechanism: Develop tracking mechanisms and provide oversight of waste compliance, in order to ensure that the mechanism of waste disposal is streamlined.
    • Strict enforcement: While enforcement strictness is of paramount importance, it is also vital to build an incentive structure around this to ensure better complicity by the producers.
    • Innovation: The time is ripe for innovators to come up with an alternative for plastics and the strong will of the Government to rid the toxic waste in a sustainable and safe manner.

    Try answering this PYQ:

    Q.In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?

    (a) The Bio-medical Waste (Management and Handling) Rules, 1998

    (b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

    (c) The e-Waste (Management and Handling) Rules, 2011

    (d) The Food Safety and Standard Regulations, 2011

     

    [wpdiscuz-feedback id=”sv9ethomi6″ question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • India, UAE to sign Comprehensive Economic Partnership Agreement (CEPA)

    India and the United Arab Emirates will sign the first-ever bilateral Free Trade Agreement between the two countries.

    What is CEPA?

    • The partnership agreement or cooperation agreement is more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment and other areas of economic partnership.
    • It may even consider negotiation in areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    What is a Free Trade Agreement (FTA)?

    • An FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

     

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  • A miracle cure against HIV

    There is considerable excitement in the world of medicine after scientists reported that a woman living with HIV (Human Immunodeficiency Virus) and administered an experimental treatment is likely ‘cured’.

    What is HIV/AIDS?

    • HIV (human immunodeficiency virus) is a virus that attacks cells that help the body fight infection, making a person more vulnerable to other infections and diseases.
    • First identified in 1981, HIV is the cause of one of humanity’s deadliest and most persistent epidemics.
    • It is spread by contact with certain bodily fluids of a person with HIV, most commonly during unprotected sex, or through sharing injection drug equipment.
    • If left untreated, HIV can lead to the disease AIDS (acquired immunodeficiency syndrome).
    • The human body can’t get rid of HIV and no effective HIV cure exists.

    Treating HIV

    • However, by taking HIV medicine (called antiretroviral therapy or ART), people with HIV can live long and healthy lives and prevent transmitting HIV to their sexual partners.
    • In addition, there are effective methods to prevent getting HIV through sex or drug use, including pre-exposure prophylaxis (PrEP) and post-exposure prophylaxis (PEP).

    What is the new breakthrough?

    • US researchers have described the case of a 60-year-old African American woman who was diagnosed with an HIV infection in 2013.
    • She was started on the standard HIV treatment regimen of anti-retroviral treatment (ART) therapy consisting of tenofovir, emtricitabine, and raltegravir.
    • She was given cord blood, or embryonic stem cells, from a donor with a rare mutation that naturally blocks the HIV virus from infecting cells.
    • She was also given blood stem cells, or adult stem cells, from a relative.

    What actually worked?

    • The adult stem cells boosted the patient’s immunity and possibly helped the cord blood cells fully integrate with the lady’s immune system.
    • Now she has no sign of HIV in her blood and also has no detectable antibodies to the virus.
    • Embryonic stem cells are potentially able to grow into any kind of cell and hence their appeal as therapy, though there is no explanation for why this mode of treatment appeared to be more effective.

    Is this treatment the long-sought cure for AIDS?

    • Not at all. While this approach is certainly a welcome addition to the arsenal of treatments, stem cell therapy is a cumbersome exercise and barely accessible to most HIV patients in the world.
    • Moreover, this requires stem cells from that rare group of individuals with the beneficial mutation.
    • Anti-retroviral therapy, through the years, has now ensured that HIV/AIDS isn’t always a death sentence and many with access to proper treatment have lifespans comparable to those without HIV.
    • A vaccine for HIV or a drug that eliminates the virus is still elusive and would be the long-sought ‘cure’ for HIV/AIDS.

    What is the prevalence of HIV/AIDS in India?

    • As per the India HIV Estimation 2019 report, the estimated adult (15 to 49 years) HIV prevalence trend has been declining in India since the epidemic’s peak in the year 2000 and has been stabilizing in recent years.
    • In 2019, HIV prevalence among adult males (15–49 years) was estimated at 0.24% and among adult females at 0.20% of the population.
    • There were 23.48 lakh Indians living with HIV in 2019.
    • Maharashtra had the maximum at 3.96 lakh followed by Andhra Pradesh (3.14 lakh) and Karnataka.
    • ART is freely available to all those who require and there are deputed centers across the country where they can be availed from.

     

     

  • After the Budget’s ‘crypto signal’, India awaits reform

    Context

    In the Union Budget speech, Finance Minister Nirmala Sitharaman announced a 30% flat tax rate levied on any gains made from the transfer of virtual assets including cryptocurrencies and Non-Fungible Tokens (NFTs).

    What is cryptocurrency?

    • Cryptocurrency (crypto) consists of a digital denomination designed to work as a medium of exchange through a distributed computer network (a blockchain) that is not reliant on any central authority such as a government or a bank for its upholding and maintenance.
    • Legal status: The announcement of the tax by the Finance Minister now leads to the assumption that crypto is legal in India.
    • Foreseeable are changes that would, down the road, legitimize and formally legalize the activities of crypto start-ups and enable them to access the necessary support system which might not have been available previously.

    What are the implications of taxing cryptocurrencies in India?

    • While critics are right in observing that the 30% flat tax rate is a harsh rate, this is a premium and price well-worth paying in exchange for what is effectively a ruling-out of prospects for a total ban on crypto by the central government.
    • Scope for innovation: The high tax rate would inevitably hamper the willingness of investors to convert cryptocurrencies into national fiat, this may, in turn, open up more doors for technologically savvy and innovation-minded investors.
    •  The extremely high tax rate and the fact that the losses cannot be offset would invariably propel investors to turn to alternative means of storing and undertaking transactions in cryptocurrencies, without foregoing the significant losses involved as they “switch” back into the rupee.
    • An inadvertent upside of this, then, is the prospective conversion and reallocation of crypto-funds from one form to another.
    • Such transformations would involve DeFi (Decentralised Finance) activities such as staking, lending, and providing liquidity, among others.

    Scope for DeFi in India

    • DeFi (or “decentralized finance”) is “an umbrella term for financial services on public blockchains.
    • With DeFi, one can do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it is faster and does not require paperwork or a third party. 
    • DeFi is global, peer-to-peer (meaning directly between two people, and not routed through a centralised system), pseudonymous, and open to all.
    •  The processes highlighted above would drive innovation in the field of Indian DeFi.

    Concerns

    • Low participation due to high rate: The community of small and medium-sized enterprises (SMEs) and lower-end high net-worth individuals are going to find it most difficult to access the ecosystem given the substantial barriers posed by the tax rates.
    • Lack of clarity: Additionally, when it comes to India’s crypto policy at large, there is a fundamental lack of clarity in aspects other than taxation.
    • There appears to be a push to treat crypto as purely an asset class than a currency.
    • The consolation offered by the Government in the form of the Reserve Bank of India’s CBDC, or Central Bank Digital Currency, will definitely help in pushing for the adoption of digital currencies, but, equally, defeats the fundamental purpose of cryptocurrency, which is decentralization.

    Suggestion

    • Reduce the tax rate:  There is a need to reduce tax rates in the future, though this must be weighed against considerations concerning government revenue and the need to curb speculative bubbles surfacing in relation to the currency.
    • Incorporation of insights: The second reform constitutes the incorporation of insights from seasoned partners from international communities, the key should rest with engaging these individuals for their insights and advice on the best practices associated with cryptocurrency policymaking.

    Consider the question “What is DeFi (decentralised finance)? What are the implications levying high tax on the cryptocurrencies?”

    Conclusion

    Systemic reforms are by no means easy, but they are critical as an amplifier of the successes that India has already accrued in the field and as an accelerator of India’s advancement in the sphere of crypto finance and blockchain social policymaking.

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  • Renewable Purchase Obligations (RPO).

    Telangana CM in harsh words has criticized the Prime Minister over Renewable Purchase Obligations (RPO).

    Why such a gesture by Telangana CM?

    • Telangana has been particularly vocal about the “increasing burden” forced upon states by the Centre on account of the clean energy cess imposed on coal and the RPOs (Renewable Purchase Obligation).

    What are RPOs?

    • Renewable Energy Certificates (REC) is a policy instrument to catalyze the development of renewable energy.
    • It is a market-based mechanism that will help the states meet their regulatory requirements (such as RPOs) by overcoming the geographical constraints on existing renewable potential in different states.
    • Under RPO, power distribution companies purchase a certain percentage of their requirements from renewable energy sources.

    REC Mechanism

    • REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).
    • It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the RPO.
    • 1 REC is treated as equivalent to 1 MWh.

    How many types of RECs are there?

    There are two categories of RECs, viz., solar RECs and non-solar RECs.

    1. Solar RECs are issued to eligible entities for the generation of electricity based on solar as a renewable energy source.
    2. Non-solar RECs are issued to eligible entities for the generation of electricity based on renewable energy sources other than solar.

    Issues highlighted by Telangana

    • Mandatory purchase: The CM has raised the issue of mandatory purchase of renewables reducing the Plant Load Factor (PLF) for existing thermal power projects.
    • Only solar RPO: The CM questioned the mandate to procure a certain percentage of power from solar energy noting that Telangana had hydropower projects producing over 2,500 MW of power from rivers.
    • Not all states have ample renewables: States have thus far not been able to meet RPO targets, with over a dozen states and UTs achieving less than 60% of RPOs.
    • Penalty for non-compliance: There is a (small) penalty for not meeting RPO obligations. The Centre has proposed to increase penalties on states for non-compliance with RPOs in the draft electricity amendment bill.

    Clarification from the centre

    • States were free to hold their own bids and buy green energy from any developer instead of procuring power based on bids by the SECI.
    • They can choose to have their own bids.

     

     

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  • The myth of the trickle-down

    Context

    There is fear that the way the money will be used by the Centre will disempower the states further, just when they must do most of the heavy lifting on public welfare.

    Wealth creation and trickle-down

    • Failure of trickle-down: Evidence from around the world is that the economic policy paradigm, of first increasing the overall size of the pie by reducing taxes at the top and then “redistributing” the wealth, has not delivered benefits to people.
    • Gandhiji had declared that he was not against wealth creators. He lauded wealth creation.
    • However, it must not be at the cost of workers and welfare.
    • Wealth creators must be trustees of the wealth they create, not its exclusive owners.

    The demand-side problem of the Indian economy

    • The Indian economy is suffering from a chronic “demand-side” problem that is becoming worse with misguided economic policies.
    • Young people who have been getting educated in larger numbers than before, even learning vocational skills, cannot find jobs.
    •  If people don’t earn, demand will not increase, and investments in businesses will not be attractive.
    • Moreover, frustrated youth are tinderboxes for social unrest.

    Financial globalization and its impact on India

    • Around the world, there is a reaction to the financial globalization of the last 30 years.
    • In his book, Davos Man, Peter Goodman explains how the wealthiest people have influenced economic policies in democratic countries from the 1990s to make themselves wealthier.
    • Thomas Piketty has documented how wealth inequalities have increased alarmingly.
    • Wealth has accumulated at the top, with regressive tax policies along with deregulation.
    • Government expenditure on social reforms has been crimped.

    Way forward

    • The global economy must move on from hyper-financial, deregulated capitalism, which has given easy money too much freedom.
    • They must move out from their ideological ruts.
    • Invest in human capital: Until the economy grows there will be no resources to invest in human development — whereas China invested in human development before its economic take-off.
    • Protection to industrial sector: That an unprepared industrial sector will thrive in global free trade — whereas the UK and US (and Japan and China too), grew their industrial sectors behind walls of protection, and then demanded that the rest open their markets to the might of their enterprises.
    • Inclusive growth: Political divisions by religion and caste are tearing India’s social fabric again. The Indian economy must grow inclusively to repair it.

    Conclusion

    Indian policymakers must urgently discover India’s own, contextually appropriate model of development and shed defunct economic theories.

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  • Time to rationalise fuel taxes

    Context

    The disconnect between retail and wholesale inflation suggests that the two measures are driven by distinct and unrelated shocks.

    The disconnect between retain inflation and wholesale inflation

    •  In the months between April 2020 and November 2020, retail inflation remained above 6%, while average wholesale inflation was -0.20%.
    • During the financial crisis (2008-2009) wholesale inflation came down significantly as commodity prices crashed after a boom, but retail inflation kept rising.
    • Correlation: This disconnect is reflected in the contemporaneous correlation between these two measures of inflation, which we find to be very low (0.04), and not significant.

    Understanding the reasons for the disconnect

    •  We cannot rule out feedback from wholesale inflation to retail inflation.
    • To better explore this, it helps to understand the driving forces behind retail and wholesale inflation. 
    • Driving factors for CPI: Retail inflation is closely linked to food and beverage prices, partly because of their higher weightage in the consumer price index (CPI).
    • The dominance of supply shocks: High retail inflation in 2020 was primarily due to the rising prices of food and beverages.
    • The surge was likely led by the usual supply shocks—rainfall, agricultural productivity, or Covid-19-induced supply shocks.
    • This suggests two important features of Indian retail inflation: it is predominantly led by supply shocks (food inflation shock) and it is transitory in nature.
    • Driving factor for WPI: High wholesale inflation in recent months was mainly due to rising prices in fuel and power and manufacturing, which together comprise around 77% of the wholesale price index (WPI).
    • Rising fuel and energy prices in India were a result of the recent increase in global oil prices.

    Takeaways

    • High wholesale inflation should not warrant any immediate policy responses as the two inflation measures seem to reflect different things.
    • Overall, the high correlation between world energy inflation and India’s wholesale inflation (0.88) indicates that India’s wholesale inflation is predominantly driven by world commodity prices.
    • On the other hand, the low correlation between India’s retail inflation and world energy inflation (-0.13, and not significant), suggests that India’s retail inflation is primarily driven by domestic food prices.
    • Higher wholesale inflation implies a higher profit margin for producers, which acts as an incentive for investment
    •  There are, in fact, some early signs of a revival in investment in recent quarters, and policy must be careful not to derail this.

    Policy options

    • Given the pass-through of wholesale inflation into retail inflation, if the ongoing commodity boom persists, then the fuel and power component of the WPI is likely to raise retail inflation directly.
    • At that point, there would be some urgency to increase the interest rate, which may be premature and could dampen the revival of growth prospects.
    • To avoid the interest rate response, the best option going forward would be to rationalise fuel taxes, to reduce the pass-through of global commodity prices into wholesale prices and ultimately into retail inflation.

    Conclusion

    The correct fiscal-monetary coordination requires fiscal policy not to be inflationary, so that the RBI can support growth by keeping interest rates low.

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    Source:

    https://www.financialexpress.com/opinion/time-to-rationalise-fuel-taxes-oil-is-a-major-input-in-production-hence-a-tax-on-it-is-highly-inflationary/2430635/