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GS Paper: GS3

  • Black Holes Merger

    Billions of years ago, a collision between two black holes sent gravitational waves rippling through the universe. In 2019, signals from these waves were detected at the gravitational wave observatory LIGO (United States) and the detector Virgo (Italy).

    Try this PYQ:

    Q.Recently, scientists observed the merger of giant ‘blackholes’ billions of light-years away from the Earth. What is the significance of this observation?

    (a) ‘Higgs boson particles’ were detected.

    (b) ‘Gravitational waves’ were detected.

    (c) Possibility of inter-galactic space travel through ‘wormhole’ was confirmed.

    (d) It enabled the scientists to understand ‘singularity’.

    Why in news?

    • The cause of curiosity is the mass of one of the parent black holes, which defies traditional knowledge of how black holes are formed.

    What exactly was detected?

    • It was a signal from a gravitational wave, a relatively new field of discovery.
    • Gravitational waves are invisible ripples that form when a star explodes in a supernova; when two big stars orbit each other; and when two black holes merge.
    • Travelling at the speed of light, gravitational waves squeeze and stretch anything in their path.

    Detecting gravitational waves

    • Gravitational waves were proposed by Albert Einstein in his General Theory of Relativity over a century ago.
    • It was only in 2015, however, that the first gravitational wave was actually detected — by LIGO. Since then, there have been a number of subsequent detections of gravitational waves.
    • The signal detected at LIGO and Virgo, as described by the LIGO Collaboration, resembled “about four short wiggles” and lasted less than one-tenth of a second.

    Where did it come from?

    • Subsequent analysis suggested that GW190521 had most likely been generated by a merger of two black holes. The signal likely represented the instance that the two merged.
    • It was calculated to have come from roughly 17 billion light-years away, and from a time when the universe was about half its age.

    Some questions to verify

    • The findings led to further questions.
    • One of the two merging black holes falls in an “intermediate-mass” range — a misfit that cannot be explained by traditional knowledge of how black holes form.

    Why is it unusual?

    • All the black holes observed so far belong to either of two categories.
    • One category ranges between a few solar masses (one solar mass is the mass of our Sun) and tens of solar masses. These are thought to form when massive stars die.
    • The other category is of supermassive black holes. This range from hundreds of thousands, to billions of times that of our sun.
    • According to traditional knowledge, stars that could give birth to black holes between 65 and 120 solar masses do not do so — stars in this range blow themselves apart when they die, without collapsing into a black hole.

    Observing for the first time

    • In the merger leading to the GW190521 signal, the larger black hole was of 85 solar masses —well within this unexpected range, known as the pair-instability mass gap.
    • It is the first “intermediate-mass” black hole ever observed. (In fact, the smaller black hole to is borderline, at 66 solar masses.)
    • The two merged to create a new black hole of about 142 solar masses. Energy equivalent to eight solar masses was released in the form of gravitational waves, leading to the strongest ever wave detected by scientists so far.

    Possible reasons for its formation

    • The researchers suggest that the 85-solar-mass black hole was not the product of a collapsing star, but was itself the result of a previous merger.
    • Formed by a collision between two black holes, it is likely that the new black hole then merged with the 66-solar-mass black hole — leading to gravitational waves and the signal received by LIGO and Virgo.

  • [pib] NIDHI-EIR Programme

    A brochure featuring Entrepreneurs in Residence (EIR) under the National Initiative for Developing and Harnessing Innovations (NIDHI) programme was launched by Dept. of Science and Technology (DST).

    Try this MCQ:

    Q.The NIDHI-EIR Programme sometimes seen in news functions under the:

    a)Ministry of Science & Technology

    b)Ministry of Commerce and Industry

    c)Ministry of Finance

    d)Ministry of Micro, Small and Medium Enterprises

    About NIDHI-EIR

    • DST has announced a National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella programme for nurturing ideas and innovations into successful startups.
    • EIR programme is one of the programs introduced under NIDHI to inspire the best talents to be entrepreneurs, to minimise the risk involved in pursuing start-ups, and to partially set off their opportunity costs of high paying jobs.
    • It provides tremendous opportunities for innovative entrepreneurs to expand their networks and get critical feedback on their ventures in order to promote their entrepreneurial career goals and aspirations.

    The opportunities under NIDHI-EIR program include:

    • Guidance from experienced, innovative and highly successful entrepreneurs on the business concept, strategy or venture and insight into specific industries or markets.
    • Best practices for starting a business and broaden the professional network.
    • Co-working spaces for developing the idea into a marketable product.

  • [pib] Global Innovation Index 2020

    India has climbed 4 spots and has been ranked 48thby the World Intellectual Property Organization (WIPO) in the Global Innovation Index 2020 rankings.

    Try this PYQ from CSP 2016:

    Q.India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?

    a) Organization for Economic Cooperation and Development (OECD)

    b) World Economic Forum

    c) World Bank

    d) World Trade Organization (WTO)

    About the Global Innovation Index

    • The GII is an annual ranking of countries by their capacity for, and success in, innovation. It was started in 2007 by INSEAD and World Business a British magazine.
    • It is published by Cornell University, INSEAD, and the WIPO, in partnership with other organisations and institutions.
    • It is based on both subjective and objective data derived from several sources, including the International Telecommunication Union, the World Bank and the World Economic Forum.
    • The GII is commonly used by corporate and government officials to compare countries by their level of innovation.
    • The theme of the 2019 GII is Creating Healthy Lives – The Future of Medical Innovation, which aims to explore the role of medical innovation as it shapes the future of healthcare.

    Components of GII

    Five input pillars capture elements of the national economy that enable innovative activities under GII are:

    1. Institutions,
    2. Human capital and research,
    3. Infrastructure,
    4. Market sophistication, and
    5. Business sophistication.

    Two output pillars capture actual evidence of innovation outputs:

    1. Knowledge and technology outputs and
    2. Creative outputs

    India’s performance this year

    • In midst of the COVID -19 pandemic, it comes as uplifting news for India and is a testament of its robust R&D Ecosystem.
    • India was at the 52nd position in 2019 and was ranked 81st in the year 2015.
    • The WIPO had also accepted India as one of the leading innovation achievers of 2019 in the central and southern Asian region, as it has shown a consistent improvement in its innovation ranking for the last 5 years.

  • Reforms that will lead to economic Poorna Swaraj

    The article discusses the long term and short term strategy to deal with the disruption caused by the pandemic and using it to bring about the reform in various sectors.

    Context

    • The pain of COVID is real, GST shortfall of Rs 3 lakh crore, expected new bad loans of Rs 3 lakh crore, and a 25 per cent first quarter contraction of GDP.
    • COVID will end, the last quarter was unique, and COVID has created a policy window for overdue reform.

    3 Questions to be answered to determine short term measures

    • 1) Are we at the start, middle, or end of the virus?
    • This matters because life will be tentative until companies and individuals know where we are.
    • 2)Will companies will they save for a rainy day or live for today?
    • This matters because lower demand is fantastic for the environment but fatal for the economy (the paradox of thrift).
    • 3) Do we have an effective solution for professions that can’t be done without social distancing until the vaccine arrives?
    • All policy can do in the short run is ensure that disease doesn’t lead to death, unemployment doesn’t lead to hunger, and working capital problems don’t lead to bankruptcy.

    Factors in favour of India in the long run

    • Our post-COVID, post-Trump, post-China, post-GST, and post US Federal Reserve economic strategy must recognise factors in our favour.
    • China’s territorial arrogance may be premature.
    • China’s credit to GDP is an unsustainable 300 per cent, many of its big companies will not survive when faced with open market, and its domestic consumption is not sufficient to substitute for global trade.
    • China’s military overreach is unifying the region and creating coalitions and alliances that they will regret but India will enjoy.
    • Muted global growth means oil prices will remain low; this is a huge macroeconomic gift for a country like India.
    • The global digitisation supercycle creates insatiable demand for software talent which would be big advantage for India.
    • Over the next few decades, most rich countries will struggle to grow.
    • This forces investors to overprice growth. And because of our past sins, India is the only big country with decades of growth left.

    Reforms India need

    • Our problem is not jobs but productivity.
    • This needs compliance reform-taking an axe through our 67,000 compliances and 6,700 filings.
    • Labour law reform.
    • Banking reform: raising our credit to GDP ratio from 50 per cent to 100 per cent by licensing more banks and fixing existing ones.
    • Education reform.
    • Ease-of-doing-business reforms: reduce the number of ministries from 52 to 15.
    • Civil service reform:cut the number of people in Delhi with the rank of Secretary from 250+ to 50, a risk-averse bureaucracy must be sidestepped or overruled.

    Consider the question “The disruption caused by the pandemic offers a window for India to create enduring change through economic reforms to take advantage of the opportunity provided by the pandemic. Discuss.”

    Conclusion

    We should focus on creating climate change for our entrepreneurs, firms, and citizens with reforms that will give them economic Poorna Swaraj. And take our per capita income of $2,500 to $10,000 in five years. If not now, then when?

  • Issues with the Gopalakrishnan Committee Report

    The article highlights the importance of non-personal data collected by the government and lack of any reference to it in the Gopalakrishnan Committee report.

    Background

    • The Committee of Experts on the Non-Personal Data Governance Framework headed by K Gopalakrishnan has recommended making privately held non-personal data “open”.
    •  This has raised concerns about state interference in the private data ecoystem.

    Importance of data collected by government agencies

    • The report is a missed opportunity to address the governance frameworks around data created by government agencies.
    • Some of the most important non-personal data sets are held by the government, or result from taxpayer funding.
    • Such data can be useful in either framing public policy or creating and providing new services.

    Why government data should be open to citizens: 5 Reasons

    • First, the state should be transparent about information that it has. This will improve accountability.
    • Second, if taxpayer money has funded any of the data sets, then it is an obligation of the state to return the fruits of that funding to the taxpayer.
    • Third, by permitting the reuse of government data sets, we avoid the need for duplication.
    • Fourth, government data sets, curated according to publicly verified standards, can lead to increased confidence in data quality and increased usage.
    • Finally, free flow of information can have beneficial effects on society in general.

    Government policies promoting openness of data

    • The Right to Information (RTI) Act, 2005, mandates the disclosure of government data on a suo moto basis.
    • One of the nine pillars of the Digital India Policy is “information for all”.
    • The National Data Sharing and Accessibility Policy (NDSAP), 2012 requires all non-sensitive information held by public authorities to be made publicly accessible in machine readable formats (subject to conditions).
    • The government has also set up an Open Government Data Platform to provide open access to data sets held by ministries and other agencies of the government.
    • Various States have also either created their own data portals or have provided data sets to the Open Government Data Platform.

    Challenges in making the data open to society

    • There are two reasons for our failure to create an open data-based society.
    • The first is lack of clarity in some of the provisions of the NDSAP or the relevant implementation guidelines.
    • The second is the inability to enforce guidelines appropriately.
    • Data sets released by governments are often inconsistent, incomplete, outdated, published in non-machine readable or inconsistent formats, include duplicates, and lack quality (or any) metadata, thereby reducing re-usability.

    Issues with Gopalakrishnana Committee Report

    • The Gopalakrishnan Committee could have evaluated what is going wrong with existing policies and practice pertaining to government data.
    • The report is a missed opportunity to address the governance frameworks around non-personal data sets in a country created by government agencies, or those resulting from taxpayer money.
    • The report largely focuses on the dangers posed by data collection by private sector entities.
    • This has raised concerns about state interference in the private data ecoystem.
    • Many of the concerns that should be addressed in the report that are central to the governance of the data ecosystem have remained in the background.
    • For instance, India’s cybersecurity framework continues to be inadequate, while even the Justice B.N. Srikrishna Committee report of 2018 highlighted the need to restrict the growing power of the state to carry out surveillance.

    Consider the question “What are the key recommendation made by the Gopalakrishnan Committee for the regulation of non-personal data? What are the shortcomings in of the report in your opinion?”

    Conclusion

    Since data governance is a relatively new concept in India, the government would be better served in taking an incremental approach to any perceived problems. This should begin with reforming how the government itself deals with citizens’ data.

  • Green Term Ahead Market (GTAM)

    As a first step towards Greening the Indian short term power market, the  Ministry of Power and New & Renewable Energy (MNRE) has launched pan-India Green Term Ahead Market (GTAM) in electricity.

    About GTAM

    • GTAM is an alternative new model introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs.
    • This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.

    Benefits of GTAM

    • It would lessen the burden on the RE-rich States and incentivize them to develop RE capacity beyond their own RPO.
    • It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to the pan- India market

    Key features

    • Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO.
    • GTAM contracts will be segregated into Solar RPO & Non-Solar RPO as RPO targets are also segregated.
    • Further, within the two segments, GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily and Weekly Contracts
    • Green Intraday Contract & Day Ahead Contingency Contract – Bidding will take place on a 15-minute time-block wise MW basis.
    • Daily & Weekly Contracts – Bidding will take place on an MWh basis.
    • Price discovery will take place on a continuous basis i.e. price-time priority basis. Subsequently, looking at the market conditions open auction can be introduced for daily & weekly contracts.
    • Energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.

  • E-commerce rules 2020

    The article analyses the various restrictions under The Consumer Protection (E-Commerce) Rules, 2020 to regulate all commercial transactions and issues with such restrictions.

    Context

    • The recent rules relating to e-commerce, issued by the ministry of consumer affairs, food and public distribution, under the Consumer Protection Act, 2019 needs some changes.

    What the recent rules specify

    • The Consumer Protection (E-Commerce) Rules, 2020, notified on July 23, regulate all commercial transactions sold over a digital or electronic network.
    • The e-com rules currently recognise two e-commerce business models, namely, marketplace model and inventory-based model.
    • The rules have separate specified provisions for marketplace- and inventory-based entities.
    • The e-com rules require that all information on the return, refund, exchange, warranty and guarantee, delivery and shipment of the goods or services being sold, including their country of origin, be provided on the platform.
    • Such details enable consumers to make an informed decision.

    What the new rules seek to achieve

    • The country of origin requirement is significant as India and several other countries are currently re-negotiating their free trade agreements.
    • E-com rules prohibit unfair trade practices by entities and sellers on marketplaces and manipulation of price.
    • The entities are prohibited from manipulating the price of the goods or services to gain unreasonable profit by imposing unjustified price or charges on consumers.

    Issues with the rules

    • It remains unclear as to what would constitute price manipulation.
    • It also remain unclear how the e-commerce entities and sellers are expected to navigate these roadblocks without falling foul of such provisions.
    • Both the marketplace entity and sellers are now required to set up a grievance redressal mechanism, small businesses may not be in a position to comply.
    • The rules also prohibit an e-commerce entity from levying a charge for cancellation post confirmation.
    • While the provisions may be intended as safeguards that ensure a level-playing field, some of these conditions are impractical.
    • Applying identical rules does not convey a business-friendly approach.

    Investment restrictions

    • The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 currently recognise the marketplace and inventory model.
    • It permit 100% FDI under the automatic route to marketplace entities as also to those engaged in single-brand retail.
    • Foreign investments, up to 51%, are permitted in multi-brand retail with prior government approval.
    • As per the non-debt rules, entities engaged in single-brand retail are permitted to undertake retail trading through e-commerce.
    • However, single-brand retail trading through e-commerce has to open a brick-and-mortar store within two years from the date it commences online retail.
    • Retail trading, in any form, by means of e-commerce, is not permissible for entities engaged in inventory-based multi-brand retail trading and having foreign investment.

    Consider the question “What are the objectives sought to be achieved through The Consumer Protection (E-Commerce) Rules, 2020 to regulate commercial transactions? What are the issues with the rules?”

    Conclusion

    The commercial sector is anxious for India to consider relaxing some of these requirements, or extending the time period for compliance, given that brick-and-mortar operations may not be possible in the foreseeable future.

    Source-

    https://www.financialexpress.com/opinion/e-commerce-rules-a-one-size-fits-all-approach-some-need-to-be-relaxed/2071953/

    Back2Basics: Invenetory model and marketplace model

    • Marketplace model of e-commerce means providing of an information technology platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.
    • The main feature of the market place model is that the e-commerce firm like flipkart, snapdeal, amazon etc. will be providing a platform for customers to interact with a selected number of sellers.
    • Inventory model of ecommerce means an ecommerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly.
    • The main feature of inventory model is that the customer buys the product from the ecommerce firm.

  • Aiming for wider consumer base and directing public spending accordingly

    The article suggests the widening of consumer base rather than increasing consumption. To augment that, the government should also direct the spending towards such sectors which would help in broadening of the base.

    Prescription for long term growth: Broadening the consumer base

    • India entered the pandemic with declining growth and limited scope for a conventional and large fiscal stimulus.
    • The NSS 68th round consumption survey indicates that in urban India, the top 20 per cent of the population accounted for nearly 55 per cent of discretionary consumption and 45 per cent of all consumption.
    •  The narrow consumption base coupled with uncertainty over the demographic dividend could belie India’s long-term investment attractiveness.
    • With or without the pandemic, the prescriptions for long-term growth remain the same — broaden the consumer base.
    • This broadening of the consumer base should happen through empowering the low and middle-income consumers.

    Why can’t the government just spend to revive growth

    • 1) Temporary incomes coupled with job/income uncertainty will induce precautionary savings without any impact on growth.
    • 2) With revenues declined, funding of additional expenditure is through higher borrowings.
    • Any incremental debt should be seen in the context of future investments being hampered due to current consumption.
    • India’s public debt/GDP will likely reach around 85 per cent and the consolidated gross fiscal deficit to GDP ratio could be around 12.5 per cent this year. 

    Way forward

    • India needs to broaden its consumer base beyond the top 10-20 per cent of the population to improve long-term growth prospects.
    • To achieve this we will need well-paid employment for the bottom and middle segments.
    • The “safe” group of India’s workforce is extremely small.
    • The PLFS 2018-19 report places around 24 per cent of the workforce in the regular wage/salary category.
    • Within this segment, around 40 per cent do not have a written contract, paid leaves, or security while 70 per cent do not have any written contract.
    • These sharp skews in consumption and labour become a substantial risk for a consumption-led growth in the aftermath of a crisis.
    • The PLFS 2018-19 report indicates that around 50 per cent of the rural non-agriculture workforce.
    • 35 per cent of the urban workforce is engaged in the construction and manufacturing sectors.
    • The rebuild and recover phase should aim for a wider consumer base with infrastructure and manufacturing as the two pillars.
    • To make manufacturing easier, the focus should be on labour reforms, fewer/quicker approvals, reducing the compliance burden, and promoting export-oriented sectors.
    • Policies should not become too inward-looking such that export promotion becomes difficult.

    Directing public spending and policies appropriately

    • Most public spending should be directed towards roads, railways, infrastructure, healthcare and educational facilities.
    • To promote infrastructure creation along with private sector participation, the government needs to charge an economic price for goods and services such as power, irrigation, and public utilities.
    • Establish the rule of law with minimal interference in pricing, streamline processes for quick approvals and ensure timely payments to private operators.
    • The government should also signal its vision along with a financing strategy through sharper expenditure management, enhanced market borrowings, setting up of a Development Financing Institution, and an asset monetisation programme.

    Conclusion

    To achieve economic growth of 7-8 per cent the government needs to start addressing large infrastructure deficit, the weak financial sector, archaic land and labour laws, and the administrative and judicial hurdles.

  • AGR dues issue in Telecom Sector

    The Supreme Court has held that telecom firms will get 10 years to clear their adjusted gross revenue or AGR dues and that the National Company Law Tribunal (NCLT) should decide whether or not spectrum can be sold under the Insolvency and Bankruptcy Code.

    Try this PYQ:

    Q. In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2

    (b) 1, 3 and 4

    (c) 3, 4 and 5

    (d) 2 and 5

    Supreme Court rule on AGR dues

    • In its judgment, the SC gave all telcos a 10-year timeline to complete the payments of AGR dues, instead of the old 20-year schedule suggested by the DoT.
    • It also directed telcos to pay 10 per cent of the total AGR dues by March 31, 2020, following which they can make payments in annual instalments between 2021 and 2031.
    • The non-payment of dues in any year would lead to the accrual of interest and invite contempt of court proceedings against such companies.
    • A crucial issue of whether the spectrum could be sold under IBC will now be decided by the National Company Law Tribunal.

    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 about?

    • All the telecom companies that operate in India pay a part of their revenues as licence fee and spectrum charges to the Department of Telecommunications (DoT) for using the spectrum owned by the government.
    • In its definition of AGR, the DoT had said that telcos must cover all the revenue earned by them, including from non-telecom sources such as deposit interests and sale of assets.
    • The telecom companies were opposed to this and had challenged this definition of AGR in several forums, including the Supreme Court.
    • On October 24, 2019, the SC had upheld the DoT’s definition of AGR.
    • Though the telcos sought a review of the judgment, it was dismissed by the top court which had then insisted that telcos clear all the dues by January 23, 2020.

  • Special Frontier Force: The Vikas Battalion

    There have been reports that a Special Frontier Force (SFF) unit, referred to as Vikas Battalion, has been instrumental in occupying some key heights on the LAC.

    Try this question for mains:

    Q.“It cannot be business as usual with China after the border clash.” Critically comment.

    What is the Special Frontier Force (SFF)?

    • SFF was raised in the immediate aftermath of the 1962 Sino-India war.
    • It was a covert outfit which recruited Tibetans (now it has a mixture of Tibetans and Gorkhas) and initially went by the name of Establishment 22.
    • It was named so because it was raised by Major General Sujan Singh Uban, an Artillery officer who had commanded 22 Mountain Regiment.
    • He, therefore, named the new covert group after his regiment. Subsequently, the group was renamed as Special Frontier Force.
    • SFF now falls under the purview of the Cabinet Secretariat where it is headed by an Inspector General who is an Army officer of the rank of Major General.

    Is SFF a part of the Army?

    • Strictly speaking, the SFF units are not part of the Army but they function under the operational control of the Army.
    • The units have their own rank structures which have equivalent status with Army ranks.
    • However, they are highly trained Special Forces personnel who can undertake a variety of tasks which would normally be performed by any Special Forces unit.
    • The SFF units, therefore, function virtually as any other Army unit in operational areas despite having a separate charter and history.

    Major operations conducted

    • There are several overt and covert operations in which SFF units have taken part over the years.
    • They took part in operations in the 1971 war, Operation Blue Star in Golden Temple Amritsar, Kargil conflict and in counter-insurgency operations in the country.
    • There are several other operations too in which the SFF has participated but the details are classified.