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GS Paper: GS3

  • Comparing fiscal responses to Covid on qualitative and quantitative basis

    For all the talks over the size of Atmanirbhar package, India’s response turns out to be inadequate when compared with the other countries with similar levels of per capita income. This article analyses the same.

    Context

    • India’s fiscal response is compared to countries which are similar in GDP per capita, state capacity, and structure of the labour force.
    • Before the Atmanirbhar Bharat package, India lagged significantly behind comparable developing countries.
    • As of early July, the gap seems to have narrowed.

    Comparison and challenges

    •  Due to the blurring of the distinction between fiscal and monetary components, ensuring comparable and accurate figures for fiscal responses is a challenge.
    • For example, the total Atmanirbhar package is billed at 10% of GDP by the government.
    • While the headline number for India’s fiscal response in international databases is around 4% of GDP.
    • But some estimated that the new fiscal outlay is around 1.7% of GDP.
    • Vietnam, Indonesia, Pakistan, and Egypt, all while averaging less stringent measures than those in India, have announced stimulus measures that are as large or more substantial, as a share of GDP.

    Demand-side interventions in the package

    • The one significant demand-side intervention in the Atmanirbhar Bharat package was ₹40,000 crore of additional outlay for the MGNREGA.
    • Most other demand-side measures involve the frontloading, consolidation, or rerouting of existing funds.

    How developing countries are financing responses

    • Developing countries are resorting to drastic means to finance COVID-19 responses.
    • Actions so far include the amendment of legal budget limits.
    • Some are also exploring enhanced issuance of bonds-including a ‘pandemic bond’ by Indonesia.
    • Central banks in many emerging economies are experimenting with purchases of public and private bonds in the secondary market (quantitative easing).
    • Or some are directly purchasing government bonds on the primary market (monetising the deficit).
    • In India, the debate continues over whether the Indian government should invoke the “escape cause” in the FRBM Act.
    • Escape clause will enable the central bank to directly finance the deficit.

    Cash transfer: Lessons for India

    • Demand-side interventions announced by other developing countries could provide lessons for additional measures in India.
    • Of the World Bank’s list of 621 measures across 173 countries, half were cash-based. 
    • While only 2% related to public works, a clear indication of the popularity of cash transfers over public works for income support,
    • Countries have also significantly expanded coverage of their cash transfer programmes from pre-COVID-19 levels.
    • Bangladesh and Indonesia have increased the number of beneficiaries by 163% and 111%, respectively.
    • Indonesia’s cash schemes now cover more than 158 million people or 60% of the population.
    • Additionally, the Indonesia central government has directed village authorities to focus their budgets on a cash-for-work programme.

    Suggestions for India

    • India could take these actions about cash transfers into account in decisions about expanding existing transfer programmes or even creating new ones.
    • India has been a leader in employment guarantee policies with its flagship MGNREGA programme.
    • This is the right time to expand entitlements MGNREGA.
    • There is a need to introduce an urban version of the MGNREGA.
    • In India, one reason for the subdued fiscal response and the resort to monetary measures is a concern with the debt-to-GDP ratio.
    • However, aggregate demand and confidence in the economy have slumped and may not recover for many months.
    • Additional fiscal outlay -would save lives and jobs today and might prevent a protracted slowdown.

    Consider the question “How India fares in comparison with other countries over its fiscal response to Covid? Also examine the utility of income support schemes related to public works against the cash transfer schemes adopted by the other countries.”

    Conclusion

    Not spending more now, therefore, might only worsen the debt-to-GDP ratio if growth remains depressed. The fiscal outlay in the form of cash and in-kind transfers and expanded public works schemes is the need of the hour.

    Original op-ed:

    https://www.thehindu.com/opinion/op-ed/the-covid-19-fiscal-response-and-indias-standing/article32154153.ece

  • What is a Serological Survey?

    A Serological Survey was recently conducted in New Delhi to determine the exposure of the novel coronavirus among the population.

    Try this question from CSP 2019:

    Which one of the following statements is not correct?

    (a) Hepatitis B virus is transmitted much like HIV.
    (b) Hepatitis B, unlike Hepatitis C, does not have a vaccine.
    (c) Globally, the number of people infected with Hepatitis B and C viruses is several times more than those infected with HIV.
    (d) Some of those infected with Hepatitis Band C viruses do not show the symptoms for many years.

    Serological Survey

    • A serological survey seeks to assess the prevalence of the disease in a population by detecting the presence of specific antibodies against the virus.
    • A serological test is performed to diagnose infections and autoimmune illnesses. It can also be conducted to check if a person has developed immunity to certain diseases.
    • The survey included the IgG Enzyme-Linked Immunosorbent Assay (ELISA) test which estimates the proportion of the population exposed to SARS-CoV-2 infection.
    • The IgG test is not useful for detecting acute infections, but it indicates episodes of infections that may have occurred in the past.
    • The test has been approved by ICMR for its high sensitivity and specificity.

    Highlights of the Survey

    • The study found the presence of antibodies in 22.86 percent of the people surveyed.
    • It indicated that a large number of infected persons remain asymptomatic.

    Why needed such survey?

    • Since it is not possible to test everyone in the population, serological studies are used as a tool to make an estimate of the extent of disease spread in the community.

    Conclusions from the survey

    • Results show that a significant proportion of the population is still vulnerable to contracting the novel coronavirus infection.
    • Containment measures need to continue with the same rigour.
    • Non-pharmacological interventions such as physical distancing, use of face mask/cover, hand hygiene, cough etiquette and avoidance of crowded places etc. must be followed strictly.

  • National Flood Commission

    At least 43 years after India’s first and last commission on floods was constituted, there is no national-level flood control authority in the country so far.

    Try this question for mains:
    Q. What are the various causes of urban floods in India?

    National Flood Commission

    • Rashtriya Barh Ayog or the National Flood Commission (NFC) was set up by the Ministry of Agriculture and Irrigation in 1976.
    • It aimed to study India’s flood-control measures after the projects launched under the National Flood Control Programme of 1954 failed to achieve much success.

    NFCs recommendation

    • In 1980, the NFC made 207 recommendations and four broad observations:
    • First, it said there was no increase in rainfall in India and, thus, the increase in floods was due to anthropogenic factors such as deforestation, drainage congestion and badly planned development works.
    • Second, it questioned the effectiveness of the methods adopted to control floods, such as embankments and reservoirs, and suggested that the construction of these structures be halted until their efficacy was assessed.
    • Third, it said there have to be consolidated efforts among the states and the Centre to take up research and policy initiatives to control floods.
    • Fourth, it recommended a dynamic strategy to cope with the changing nature of floods. An analysis of the report suggested that the problem began with the methods of estimating flood-prone areas of the country.

    Why revive NFC?

    • An accurate estimate is crucial for framing flood management programmes.
    • The NFC estimated that the total area vulnerable to floods in 1980 was around 40 million hectares.
    • There is another problem. The very definition of the flood-prone area does not reflect the effectiveness of the flood management works undertaken.

  • [pib] DDT and its impact on environment

    India has supplied 20.60 MT of DDT to South Africa for its Malaria control program.

    Try this question from CSP 2014:

    With reference to ‘Global Environment Facility’, which of the following statements is/are correct?
    (a) It serves as financial mechanism for ‘Convention on Biological Diversity’ and ‘United Nations Framework Convention on Climate Change’
    (b) It undertakes scientific research on environmental issues at global level
    (c) It is an agency under OECD to facilitate the transfer of technology and funds to underdeveloped countries with specific aim to protect their environment.
    (d) Both (a) and (b)

    What is DDT?

    • Dichloro-diphenyl-trichloroethane commonly known as DDT is a colorless, tasteless, and almost odorless crystalline chemical compound.
    • It was developed as the first of the modern synthetic insecticides in the 1940s.
    • It was initially used with great effect to combat malaria, typhus, and other insect-borne human diseases among both military and civilian populations.

    Why is it controversial?

    • DDT is a persistent organic pollutant that is readily adsorbed to soils and sediments, which can act both as sinks and as long-term sources of exposure affecting organisms.
    • Routes of loss and degradation include runoff, volatilization, photolysis and aerobic and anaerobic biodegradation.
    • Due to hydrophobic properties, in aquatic ecosystems DDT is absorbed by aquatic organisms and thus bio-accumulates in the food web.

    Threats of DDT

    • The bioaccumulation of DDT has caused eggshell thinning and population declines in multiple North American and European bird of prey species.
    • DDT is an endocrine disruptor. It is considered likely to be a human carcinogen.

    In use despite ban

    • A worldwide ban on agricultural use of DDT was formalized under the Stockholm Convention on Persistent Organic Pollutants.
    • But its limited and still-controversial use in disease vector control continues, because of its effectiveness in reducing malarial infections, balanced by environmental and other health concerns.

    Back2Basics: Stockholm Convention on POPs

    • Stockholm Convention is an international environmental treaty, signed in 2001 and effective from May 2004 that aims to eliminate or restrict the production and use of persistent organic pollutants (POPs).
    • In 1995, the United Nations Environment Programme (UNEP) called for global action to be taken on POPs.
    • POPs are defined by the UNEP as chemical substances that persist in the environment, bio-accumulate through the food web, and pose a risk of causing adverse effects to human health and the environment.

    Bioaccumulation and Biomagnification

    • Bioaccumulation and biomagnification are two different processes that often occur in tandem with one another.
    • Bioaccumulation is the process by which toxins enter the food web by building up in individual organisms.
    • Biomagnification is the process by which toxins are passed from one trophic level to the next (and thereby increase in concentration) within a food web.

  • Privatisation of Indian Railways

    Indian Railways has launched the process of opening up train operations to private entities on 109 origin-destination (OD) pairs of routes using 151 modern trains.

    Objectives of privatisation

    • To introduce modern technology rolling stock with reduced maintenance.
    • Reduced transit time.
    • Boost job creation.
    • Provide enhanced safety.
    • Provide world-class travel experience to passengers.
    • Reduce demand-supply deficit in the passenger transportation sector.

    Issues with the move

    1) Responsibility issue

    •  Railway crew will work the trains (151 trains in 109 routes) which will be maintained by the private investor.
    • All the other infrastructure, track and associated structures, stations, signalling, security and their daily maintenance owned by the Railways will be fully utilised in running trains.
    • Thus, the responsibility of the private investor ends with investment in the procurement and maintenance of coaches.
    • Train operation, safety and dealing with every day problems rests with the Railways.
    • In case of an unfortunate event, fixing responsibility will be an issue.

    2) Day-to-day problems

    • Provision of an independent regulator to resolve disagreement, discords and disputes.
    • But this regulator will not be able to solve day-to-day problems of dichotomy unless the basic issue is resolved.

    3) Speed issue

    • Nearly all trunk routes in the existing network are speed limited to 110 kmph very few permit speeds of upto 120-130 kmph.
    • To raise it to 160 kmph, as proposed, there has to be track strengthening, elimination of curves and level crossing gates and strengthening of bridges.
    • There is no appreciable reduction in transit time for most proposed trains, when compared with the timings of the fastest train now operating on that route.

    4) Passenger fare issue

    • In the proposal, the Railways or government have no role in fixing passenger fares.
    • Fares will be beyond the common man’s reach.
    • Fare concessions extended to several categories of people will not be made available by the private investor.
    • The very objective of commissioning the Railways as a public welfare transport organisation is defeated.

    5) Reservation in Jobs

    • The private investor is not bound to follow reservation regulations in employment.
    • This, in turn, will deprive employment opportunities for those who are on the margins of society.

    6) Limited Coverage:

    • An advantage of Indian Railways being government-owned is that it provides nation-wide connectivity irrespective of profit.
    • Privatisation of railways would mean the railways will become a profit-making enterprise, this would lead to the elimination of railways routes that are less popular.
    • Thus, the privatisation of railways can have a negative impact on connectivity and further increase the rural-urban divide.

    7) Impact on the Economy:

    • Indian Railways is the backbone of India, it provides low fare transportation to agricultural and industrial trade.
    • Therefore, privatisation of Indian railways shall definitely affect the Indian economy at large.
    • Way forward
    • There should be no need for the government to take a dual role of a facilitator as well as a participant.
    • In the case of the metro railway services, Hyderabad, for example, an ideal PPP project, the concessionaire is solely responsible for daily maintenance, operation, passenger amenities and staff issues.
    • The State government steps in when it comes to land, power, permissions, law and order, etc. Fare determination is in consultation with the government.
    • Instead of a private entrepreneur, Indian Railway Catering and Tourism Corporation, a government undertaking which has gained experience in running the Tejas Express trains, could have been given the role.

    Consider the question “Indian Railways often hailed as the lifeline of the country continues suffering from several issues. In light of this, evaluate the pros and cons of the privatisation of railways.”

    Conclusion

    This project of privatisation of trains should not result in the common man being deprived of travel facilities. The Indian Railways is a strategic resource for the nation hence it should not be judged solely on its profit-generating capability or market-based return on investment.

  • APMC Act is not the main problem

    The APMC Act, which is often blamed for the woes of the farmers is not the main problem. This article argues that the root of the problems of Indian agriculture lies somewhere else.

    Agriculture post-1991

    • The priority post-1991 has been given to industry as well as services.
    • Middle-class consumers have been favoured by at the expense of farmers.
    • This neglect of agriculture resulted in an equally unprecedented gap between the standard of living in the rural and urban parts of the country.
    • As a result, the urban/rural ratio, in terms of monthly per capita expenditures, has jumped from 1.84 to 2.42 between 2012 and 2018.
    • This means that an average urban-dweller today can consume almost 2.5 times more than an average person in a village.

    Reforms by the government

    • Government has decided to liberalise India’s agriculture by amending the APMC Act and the Essential Commodities Act.
    • Contract farming will also be introduced in such a way that the buyer can assure a price to the farmer at the time of sowing.

     APMC Act in the context of Shanta Kumar Committee report

    • The argument against the APMC Act is that it does not allow the free market to function due to government intervention.
    •  It denies farmers the opportunity to determine the prices of crops in the marketplace.
    • In theory, this is a valid argument.
    • But, Shanta Kumar Committee observed in 2015 that only 6 per cent of farmers get the Minimum Support Price (MSP).
    • This is because of barriers to access for farmers as only 22 crops are procured under MSP.
    • Infrastructure is also inadequate as there are only an estimated 7,000 APMC mandis across India.
    • Procurement depends on the stocks required by the state.

    Why the APMC Act is not the problem

    1) Farm Pricing is the problem

    • The living costs of farmers was considered while determining agricultural pricing by the Agricultural Prices Commission (APC).
    • CACP that replaced the APC in 1985 added a 10 per cent mark-up over the MSP to account for entrepreneurial costs.
    • Such practices have been gradually eroded post-1991.
    • The problem, therefore, is not state intervention but the way the government deals with agriculture.

    2) APMC Act helped India build up food stocks

    • India managed to weather the 2008 global food crisis only because it had enough food stocks as Indian agriculture was not linked to the international futures market.
    • This was possible due to the procurement done through the APMC Act.

    3) APMC Act reformed already by States

    • Since agriculture is a state subject, the Act has been modified in 17 states.
    •  On the contrary, the condition of peasants has often been affected when the APMC Act has been diluted.
    • Bihar is a case in point.
    • The APMC Act was revoked in 2006 with the same rationale that further deregulation will attract private investment in infrastructure.
    • Not only has that not materialised, but the existing APMC market infrastructure was also dismantled.

    Reforms that Indian Agriculture needs

    1) Subsidy Reforms

    • Indian Agriculture is still too heavily subsidised in favour of the big players.
    • In the Union Budget 2019-20, the allocation for the Ministry of Agriculture was Rs 1,30,485 crore and the fertiliser subsidy alone was estimated at Rs 79,996 crore.
    • But these subsidies are concentrated on a few crops.
    • Agriculture economist Bruno Dorin has shown, only three crops receive more than 60 per cent of the so-called “non-product-specific” support to agriculture — rice, wheat and sugarcane.
    • This has led to environmental degradation like the depletion of groundwater levels and monocultures which are a threat to biodiversity.
    • It has also led to the industrialisation of agriculture, that results in the strengthening of a handful of multinational companies, which supply chemical inputs.
    • Liberalisation would only strengthen the role of large companies — including those in the agri-food sector.

    2) Agriculture needs to be ecologically viable

    • Structurally, farming needs to be made economically and ecologically viable in India.
    • State intervention for better pricing, investments in water harvesting and an agroecological transition could ensure a more resilient system to weather shocks like the current one.
    • The government could draw inspiration from the Andhra Pradesh Community Managed Farming model.
    • It promotes agroecological principles with the use of locally-produced, ecologically-sustainable inputs focusing on soil health..
    • Since the agro-ecological system of farming is more biodiverse in nature, it will make the system more resilient overall.
    • It will provide a safety net for farmers in case of crop damage due to various factors such as climate change or droughts.

    Consider the question “Though the APMC Act has been blamed for the farmers’ issues, it has historically been part of the solution. Critically analyse.”

    Conclusion

    By investing again in agriculture and following, at last, the recommendations of the M S Swaminathan Committee, the Government of India would also help bridge the drastic urban-rural divide.

    To read more about the issue:

    Marketing of Agricultural Produce in India: Definition; Role; APMC Act, Model APMC Act, 2003

    Original article:

    https://indianexpress.com/article/opinion/columns/rural-india-coronavirus-farm-trade-ordinance-apmc-act-6515414/

  • Adjusted Gross Revenue (AGR) in Telecom Sector

    The Centre and telcos assured the Supreme Court that they would not conduct any re-assessment or re-calculation of the Adjusted Gross Revenue (AGR) dues, which now stands at ₹1.6 lakh crore.

    Try this question for mains:

    Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

    What is AGR?

    • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
    • It is divided into spectrum usage charges and licensing fees, pegged between 3-5 per cent and 8 per cent respectively.

    What is the issue?

    • The Bench observed that 15 or 20 years was not a reasonable time period and the telcos must come forward with an appropriate time frame.
    • The Centre had earlier urged the court that up to 20 years be given to the firms for the payments.
    • The telcos said they were in no position to give fresh bank guarantees for the payments.

    Why is AGR important?

    • The definition of AGR has been under litigation for 14 years.
    • While telecom companies argued that it should comprise revenue from telecom services, the DoT’s stand was that the AGR should include all revenue earned by an operator, including that from non-core telecom operations.
    • The AGR directly impacts the outgo from the pockets of telcos to the DoT as it is used to calculate the levies payable by operators.

    Read the complete issue here at:

    https://www.civilsdaily.com/news/explained-adjusted-gross-revenue-agr-in-telecom-sector/

  • BlackRock Android Malware

    Various security firms have alerted about new malware, called BlackRock.

    Try this question from CSP 2018:

    Q.The terms ‘WannaCry, Petya, Eternal Blue’ sometimes mentioned news recently are related to

    (a) Exoplanets

    (b) Cryptocurrency

    (c) Cyberattacks

    (d) Mini satellites

    BlackRock

    • BlackRock isn’t exactly a new malware. In fact, it is based on the leaked source code of the Xeres malware, itself derived from a malware called LokiBot.
    • The only big difference between BlackRock and other Android banking trojans is that it can target more apps than previous malwares.

    How does it work?

    • BlackRock works like most Android malware. Once installed on a phone, it monitors the targeted app.
    • When the user enters the login and/or credit card details, the malware sends the information to a server.
    • BlackRock uses the phone’s Accessibility feature and then uses an Android DPC (device policy controller) to provide access to other permissions.
    • It can be used to send and steal SMS messages, hide notifications, keylogging, AV detection, and much more.

    Threats posed

    • The new malware can steal information like passwords and credit card information from about 377 smartphone applications, including Amazon, Facebook, and Gmail.
    • It is so powerful that it makes antivirus applications useless.

  • [pib] Asteroid 2020 ND

    NASA has issued a warning that a huge “Asteroid 2020 ND” will move past Earth on July 24.

    Try this question from CSP 2014:

    Q.What is a coma, in the content of astronomy?

    (a) Bright half of material on the comet

    (b) Long tail of dust

    (c) Two asteroids orbiting each other

    (d) Two planets orbiting each other

    What are Asteroids?

    • Asteroids are small, rocky objects that orbit the Sun. They are leftover from the formation of our solar system.
    • Although asteroids orbit the Sun like planets, they are much smaller than planets.
    • There are lots of asteroids in our solar system. Most of them live in the main asteroid belt—a region between the orbits of Mars and Jupiter.
    • Some asteroids go in front of and behind Jupiter. They are called Trojans.
    • Asteroids that come close to Earth are called Near-Earth Objects, NEOs for short. NASA keeps a close watch on these asteroids.

    Asteroid 2020 ND

    • The 2020 ND is about 170 metres-long.
    • It will be as close as 0.034 astronomical units (5,086,328 kilometres) to our planet and is travelling at a speed of 48,000 kilometres per hour.
    • Its distance from Earth has placed it in the “Potentially Hazardous Asteroids (PHAs)” category.

    How are PHAs defined?

    • PHAs are currently defined based on parameters that measure the asteroid’s potential to make threatening close approaches to the Earth.
    • NASA classifies objects like these as ‘near-Earth objects’ (NEOs) as they get nudged by other planets’ gravitational attraction resulting in their proximity to our solar system.
    • It is not necessary that asteroids classified as PHAs will impact the Earth. It only means there is a possibility for such a threat.

    Can they be deflected?

    • Over the years, scientists have suggested different ways to ward off such threats, such as blowing up the asteroid before it reaches Earth or deflecting it off its Earth-bound course by hitting it with a spacecraft.
    • The most drastic measure undertaken so far is the Asteroid Impact and Deflection Assessment (AIDA), which includes NASA’s Double Asteroid Redirection Test (DART) mission and the ESA’s Hera.
    • Both mission’s target is Didymos, a binary near-Earth asteroid, one of whose bodies is of the size that could pose the most likely significant threat to Earth.
    • In 2018, NASA announced that it had started the construction of DART, which is scheduled to launch in 2021 with an aim to slam into the smaller asteroid of the Didymos system at around 6 km per second in 2022.
    • Hera, which is scheduled to launch in 2024, will arrive at the Didymos system in 2027 to measure the impact crater produced by the DART collision and study the change in the asteroid’s orbital trajectory.

    Back2Basics: Near-Earth objects (NEOs)

    • NEOs are comets and asteroids nudged by the gravitational attraction of nearby planets into orbits which allows them to enter the Earth’s neighbourhood.
    • These objects are composed mostly of water ice with embedded dust particles, and occasionally approach close to the Earth as they orbit the Sun.
    • NASA’s Center for Near-Earth Object Study (CNEOS) determines the times and distances of these objects as and when their approach to the Earth is close.

  • Exporting agri-inputs

    Some changes could make India exporter of agri-inputs. The article examines bottlenecks that holds India back and suggests the policy changes in key agri-inputs-seeds, fertilisers and machinery.

    Context

    In the following 3 key agri-inputs India has the untapped potential. What is needed is policy changes.

    1) Seeds

    • India can emerge as an important seed producer and a large exporter of seeds to many developing countries in South and South-east Asia as well as Africa.
    • The country can produce very competitively-priced seeds for hybrid rice, hybrid corn, hybrid Bt HT cotton, and several vegetables including tomato, potato and okra.
    • For this to happen, we have to set our regulatory system right.
    • Let’s use the case of cotton.
    • India’s decision in March 2002 to allow Bt cotton made India the largest producer of cotton in the world and the second-largest exporter of cotton by 2013-14.
    • But due to policy changes since 2014-15 and issues such as trait fees companies stopped the introduction of new generation of seeds
    • Now there is an “illegal” spread of Bt HT cotton in Maharashtra.
    • This is partly because our regulatory system is complex.
    • And more so because the present government has ideological blinkers against modern science.
    • This is the biggest bottleneck holding India back from becoming the seed capital of the developing world.

    2) Fertilisers

    • India has been a net importer of fertiliser nutrients (NPK) for almost two decades.
    • In 2019-20, India imported fertilisers worth $6.7 billion, topping the list is urea $2.9 billion.
    • We are totally dependent on imports and likely to remain so in case of MOP and in the case of DAP.
    •  In the case of urea, India wants to be atmanirbhar by opening up five new urea plants in the public sector with a total capacity of 6.35 MMT.
    • Almost 70 per cent of the gas being used in urea plants is imported at a price much higher than the price of domestic gas.
    • The cost is going to be more than $400/tonne when the international price generally hovers between $250-300/tonne.
    • The government should allow existing private sector urea plants to expand and produce at a much lower cost.
    • The best way to achieve self-reliance in fertilisers is to change the system of fertiliser subsidies.

    Suggestion on changes in fertiliser subsidies

    • 1) Deposit equivalent cash directly into farmers’ accounts, calculated on a per hectare basis.
    • 2) Free up fertiliser prices.
    • 3) Allow the private sector plants to compete and expand urea production in a cost-competitive manner.

    3) Farm machinery

    • Before the Green Revolution, India produced only 880 tractor units.
    • It increased to about 9,00,000 units in 2018-19.
    • So, India is the largest tractor manufacturer in the world.
    • India also exported almost 92,000 tractors, largely to African and ASEAN countries.
    • Though Green Revolution gave tractor production a push, the real break-through came after de-licensing in 1991.
    • The new class of entrepreneurs and start-ups are coming up with special apps for “Uberisation of tractor services”.
    • In an economy of small landholders, owning a tractor is a high-cost proposition as it is not fully utilised.
    • This needs to be made more efficient by creating a market for tractor services.

    Consider the question “Despite having the potential to transform itself into the exporter of agri-inputs, India ends up being the importer of some of them. In light of this examine India’s potential to become the exporter of agri-input products and suggest the measures to achieve this.”

    Conclusion

    The private sector is our strength. The only thing the government has to do is to unshackle them from the chains of controls and webs of unnecessary regulations. They will make an Atmanirbhar Bharat.