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  • Kashmir saffron gets GI tag

    Kashmir saffron has been given the Geographical Indication (GI) tag by the Geographical Indications Registry.

    Must read:

    GI Tags in news for 2020 Prelims

    All time GI tags in news

    Kashmir saffron

    • It is cultivated and harvested in the Karewa (highlands) in some regions of Kashmir, including Pulwama, Budgam, Kishtwar and Srinagar.
    • It is a very precious and costly product. Iran is the largest producer of saffron and India is a close competitor.
    • It rejuvenates health and is used in cosmetics and for medicinal purposes.
    • It has been associated with traditional Kashmiri cuisine and represents the rich cultural heritage of the region.
    • Saffron cultivation is believed to have been introduced in Kashmir by Central Asian immigrants around 1st Century BCE. In ancient Sanskrit literature, saffron is referred to as ‘bahukam’.

    3 Types

    The saffron available in Kashmir is of three types —

    • ‘Lachha Saffron’, with stigmas just separated from the flowers and dried without further processing;
    • ‘Mongra Saffron’, in which stigmas are detached from the flower, dried in the sun and processed traditionally; and
    • ‘Guchhi Saffron’, which is the same as Lachha, except that the latter’s dried stigmas are packed loosely in air-tight containers while the former has stigmas joined together in a bundle tied with a cloth thread

    Whats’ so special about Kashmir Saffron?

    • The unique characteristics of Kashmir saffron are its longer and thicker stigmas, natural deep-red colour, high aroma, bitter flavour, chemical-free processing, and high quantity of crocin (colouring strength), safranal (flavour) and picrocrocin (bitterness).
    • It is the only saffron in the world grown at an altitude of 1,600 m to 1,800 m AMSL (above mean sea level), which adds to its uniqueness and differentiates it from other saffron varieties available the world over.

  • [pib] Kisan Sabha App to Connect Farmers to Supply Chain and Freight Transportation

    Kisan Sabha App developed by CSIR to connect farmers to supply chain and freight transportation management system was recently launched.

    Initiatives as such are less likely to be asked in the prelims as the name and purpose create no different analogy. But for the sake of information and mains perspective, it is vital to remember such technology interventions while emphasizing on Agricultural marketing reforms.

    Kisan Sabha App

    • Kisan Sabha aims to provide the most economical and timely logistics support to the farmers and increase their profit margins by minimizing the interference of middlemen and directly connecting with the institutional buyers.
    • It will also help in providing the best market rates of crops by comparing nearest mandis, booking of freight vehicle at the cheapest cost thereby giving maximum benefit to the farmers.
    • The portal connects the farmers, transporters, Service providers (like pesticides/ fertilizer/ dealers, cold store and warehouse owner), mandi dealers, customers and other related entities for a timely and effective solution.
    • The app has 6 major modules taking care of Farmers/Mandi Dealers/Transporters/Mandi Board Members/ Service Providers/Consumers.

    Facilities provided by the app

    • The portal acts as a single stop for every entity related to agriculture, be they a farmer who needs better price for the crops or mandi dealer who wants to connect to more farmers or truckers who invariably go empty from the mandis.
    • It provides a platform for people who want to buy directly from the farmers.
    • It would also prove to be useful for those associated with cold store(s) or godown(s).

  • Pandemic calls for deep-set forces and scientific concepts of development for building a modern economy

    The article discusses the recovery strategies for India. There are three examples from the past from which we can draw the lessons. 1) Recovery of the US and Europe after the World Wars 2) Recovery of Japan after World War 3) China’s stimulus package after the 2008 financial crisis. In the case of the first two, climate change was not the factor. But in case of the 2008 financial package, China emphasised green technologies and was benefited from it. Drawing on China’s example, the article suggests three pronged strategy for India’s recovery taking into account the climate change factor.

    Decisions on recovery and lessons from the past recovery frameworks

    • The decisions and directions taken by states from hereon will be judged ruthlessly by historical lenses.
    • Though India has managed the pandemic with relative precision, we cannot deny an impending emergence of a new socio-economic order, where the recovery is going to be hard-earned.
    • This is not the first time the world has faced an economic crisis and won’t be the last.
    • Can a country like India, which might be one of the few countries to come out of the crisis without a recession, take lessons from past recovery frameworks?
    • Recovery frameworks: Even though the very nature of the current health crisis is much different from the past crises like World Wars and their repercussions in Europe, the US and Japan.
    • But the evidence shows that ambitious recovery plans made these nation-states more prosperous than the pre-crisis period.

    Recovery lessons form the western world after the World Wars

    • Hurt by the two World Wars and a Great Depression in between, the western world demonstrated unprecedented recovery to attain post-war full employment and stabilized income levels.
    • Almost thirty years between World War II and 1973 recession (“Glorious Thirties“), the countries like the US, Canada, Germany, and France experienced a golden period of growth.
    • In the US, the labour productivity grew at 2.82% per year which meant that productivity doubled every 25 years thanks to better machines driven by electricity and internal combustion engines, better education and massive capital investment.
    • The world wars accelerated technological innovations in energy, manufacturing and vastly improved the labour pool.

    Recovery of Japan after World War

    • Severely hit by the war, Japan’s miraculous growth from 1950 to 1990 is another example of a state using great adversity to propel itself towards prosperity.
    • Post-war liberalization was augmented by multilateral trade agreements and export promotion schemes.
    • That propelled the Japanese economy to dizzying heights making it the second-largest economy at the time.
    • Apart from fiscal stimuli, immense efforts went into strengthening human capital by promoting R&D and skilling activities.
    • Suddenly, Japan becomes one of the most ingenious economies churning out one innovative product after another in fields like electronics.
    • In addition, pioneering quality systems made Japan the first Asian economy to become a developed state.

    Recoveries based on values and technological innovations

    • All the above recoveries are rooted in modern values like create, explore and meet challenges.
    • While large investments garner a lot of attention, role played by massive skilling and resultant technological innovation should not be forgotten.
    • Skilling and innovation enabled creating goods and services of the future.

    Climate change and recovery

    • These successful recovery plans did not have the responsibility to plan for an impending climate change hanging over our head by a thread.
    • The times were different; the needs were different: more importantly, the evidences were not as irrefutable as now.
    • A 2018 study titled ‘Earth’s future’, estimated that India will lose 10% of its GDP annually in a 3°C scenario and lose 14% of its GDP annually in a 4°C scenario in the long term.
    • And the time to act is ‘now’, as consequences of inaction are existential.

    China’s stimulus after the 2008 crisis with a focus on green technologies

    • Fast-forwarding to the 21st century, the 2008–09 Chinese economic stimulus plan pumped in $586 billion to manage the crisis.
    • With serious money of $586 billion going into upgrading selected industrial sectors to firm up its presence in the global value chains (GVC).
    • Interestingly, a sizeable portion went into green technologies.
    • China understood that if the world is provided with affordable green technologies at scale, the states will incentivize the increasingly eco-aware consumers to buy these products.
    • Catalyzed by plans like “Ten Cities, Thousand Vehicles and “Thousand Talents Program (TTP)” and generous state incentives, China became a global leader in e-vehicles.
    • Chinese-made buses started roaming famous cities across the world, the roads traditionally dominated by European makers.
    • Powered by generous capital infusion, China also attained leadership in solar panels, batteries and associated supply chains in a short period setting up a sustainable growth module.
    • A lesson in fiscal prudence: The 2008–09 Chinese economic stimulus plan is also criticized for raising the Chinese debt levels, hence giving us lessons in fiscal prudence.

    Should India opt for a green recovery module?

    • Can a developing India afford to allocate a significant portion of its precious resources towards a green recovery module?
    • Unbridled economic growth and sustainable development are not mutually exclusive.
    • In fact, we might not have a choice, given the movement of global supply chain towards green technologies and tightening screws around strict sustainability standards.
    • European Commission, for instance, has announced that every euro into the recovery plan will be linked to green recovery.

    A three-pronged approach is suggested for recovery

    1. Investment and incentives for green economic activities in the selected sectors

    • First, ambitious investment and incentives in catalyzing futuristic green economic activities in selected sectors.
    • Developing, manufacturing and deploying low carbon products could help India create more jobs: the kind of jobs that will survive into the future.
    • With Giga scale battery and solar manufacturing plans already underway, there is a huge demand globally for sustainable supply chain of even traditional sectors such as textiles.
    • India could choose 5 sectors where it can fill the sustainability vacuum helping the sub-continent emerge as a new global leader in those sectors.
    • India has the potential to scale-up currently ready technologies like e-VTOLs (intra-city electric aerial mobility), which will upend the global mobility modules, increasing the profitability of growing Indian e-mobility supply chain.
    • Companies like Hyundai who have already announced manufacturing of e-VTOLs should be attracted to India.
    • Crisis situations often provide policy windows, where all the stakeholders are empowered, and historically time-consuming decisions are fast-forwarded.
    • If India manages to efficiently remove regulatory bottlenecks and creates standards for e-VTOLs before anyone else, it will take a huge chunk of the global future mobility pie.
    • Similar initiatives for other strategic sectors could be carried out.

    2. Resolve regulatory and on-ground legacy issues

    • Aggressively resolving on-ground legacy issues and challenges.
    • Shackles around entrepreneurship from labour laws to clearances regimes should be broken one by one.
    • It could be done by leveraging the cooperative and competitive federalism evidenced through the crisis under the able leadership of the Hon’ble Prime Minister.
    • And the current policy window might be an ideal opportunity for Indian democracy to deliver.

    3. Focus on skilling people

    • Third, a big-ticket omni-channel skilling architecture should be instituted.
    • Universities should be empowered and enabled to come up with new-age educational programmes to serve futuristic industries.
    • A special focus should be given to develop enough trainers to train the millions of Indian youth getting ready for the labour market every year, in new-age skills.
    • Adequate online-offline training courses must be designed in a way that it does not affect daily wages drastically.
    • The big-ticket vocational programmes, specially directed at the informal sector which constitute more than 90% of the total workforce, has the potential to employ displaced and poor labourers.
    • A strategic skill committee may be empowered to dynamically identify key skills and tweak the training modules.
    • This can be integrated with the Ministry of Environment’s Green Skill Development Program to train 10 million youth by 2030.

    The issues discussed here are important for achieving sustainable and inclusive growth. A question based on this theme was asked by UPSC in 2019.

    Consider the question “It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement.”

    Conclusion

    The current pandemic calls for deep-set forces and scientific concepts of development for building a dynamic and modern economy. Green growth is one such concept that will add a new dimension to the economic dynamism of the sub-continent helping it serve the aspirations of its citizens.

  • Rethinking the role of Intellectual Property in Corona crisis

    The article discusses the idea of creating a patent pool of the patents dealing with Covid-19. Such a patent pool will be effective in avoiding the possibility of the hostile response of societies towards patent rights. And also avoid the conflict between nations. corporations and international organisations.

    Purpose of patent rights

    • The purpose of creating and recognising patent rights is for the common public good, i.e., innovation should be made public in exchange for a limited monopoly.
    • Thus, patents need to be disclosed to the public in order to enable further research.
    • Should pandemics such as COVID-19be an exception to this?
    • With the outbreak of COVID-19, there are several innovations.
    • All these innovations may be the subject matter of patent applications around the world.
    • It will be a few years before patents are even granted.
    • However, friction already exists among various stakeholders.
    • For instance, one country made attempts to obtain exclusive rights to a vaccine being developed.
    • On the other hand, there are also collaborations taking place.
    • However, the spirit of collaborative solutions is only on the anvil.
    • The question that arises is whether the exclusivity that is recognised by patent rights will be detrimental to society.
    • Will patents create roadblocks or is there a solution?

    Possibility of conflicts over patent rights

    • Governments and international organisations need to arrive at a consensus in advance to ensure that the system is ready.
    • Procrastination would be disastrous.
    • Creating hindrances through exclusivity claims, in the wake of a pandemic, will result in dividing countries, corporations and international organisations.
    • This will not benefit patients and the world as a whole.
    • If patent owners create impediments on the strength of patent rights, the world will start despising patents and that is not a situation IP owners ought to be in.
    • Under the TRIPS (Trade-Related Aspects of Intellectual Property Rights) regime, there are several tools such as compulsory licensing that are available to ensure access to medicines.
    • However, beyond the laws, society needs to respect innovation.
    • To protect the sanctity and integrity of patent systems, and in order to ensure that an anti-IP sentiment is not generated globally, answers need to be found within the existing regime.
    • In exceptional circumstances such as these, there is a likelihood that societies may resort to extreme steps to protect themselves.
    • Before such ideas are floated, solutions should be created.

    The idea of creating a patent pool

    • One method by which aggregation and dissemination of innovative products can be ensured is by creating a patent pool.
    • Patent pools are usually effective in aggregating, administering and licensing patents related to specific areas of technology.
    • Such pools are usually managed by a central agency and the patents which become part of the pool are readily made available for licensing.
    • Some pools even publish the royalty rates payable for such licences.
    • Anyone who wishes to obtain a licence will be able to approach the pool, agree to the terms, and begin to manufacture and sell the products.
    • Such pools are prevalent in, for instance, standard essential patents related to telecom and digital innovations.
    • At the moment, individual efforts are being made by research organisations to create their own pools.
    • A more fruitful endeavour would be to create a global pool of COVID-19-related innovations, or innovations related to rare pandemics, in respect of vaccines and medicines.
    • This could be managed by a trustworthy international organisation.
    • All countries ought to have the right to implement these innovations without further permission from the patent-holders.
    • This would not require countries resorting to provisions such as compulsory licensing, state acquisition, etc.
    • Even if royalties are at a minimal level, the revenues would still be in billions of dollars owing to the large swathes of the population affected by the pandemic, who will need to be administered these products.

    Way forward

    • Creation of a pool and immediate licensing will ensure that there are hundreds of manufacturers across the world.
    • As a result, vaccines and medicines will be quickly available.
    • Such a pool needs the cooperation of not just countries and international organisations but also the hundreds of researchers, innovators, companies and universities involved.
    • Doha Declaration: Pooling of patent resources is also in line with the Doha Declaration on Public Health which is a part of the TRIPS agreement.
    • This declaration recognises the need for taking measures to ‘protect public health’ and ‘promote access to medicines’.

    A direct question on the issue can be asked by the UPSC, for ex-“Though IPRs have been provided to respect and protect the innovations and ideas, but in the wake of corona crisis, some strict provisions need to be changed. In light of the above statement, discuss the limitations of the exclusivity clause under the patents rights. And how can it be overcome in emergency situations?”

    Conclusion

    Public-private partnerships (PPP) need to be scaled up. Creation of the ‘PPP-pandemic patent pool’ at a global level, to pool all innovations, is the way forward. Let us not wait any longer.

  • Plasma therapy is no silver bullet

    The article discusses the issues with convalescent plasma therapy. The therapy has been in the news as a cure to Covid-19. The lack of conclusive evidence is a major issue. There are certain risks involved in large scale adoption. All such issues are dealt with in detail here.

    Importance of scientific research in dealing with Covid-19

    • The COVID-19 pandemic has posed unprecedented challenges to governments, health professionals and the general public at large, around the world.
    • Every response, administrative, social, economic or medical is being subjected to intense public scrutiny, as it rightly should be in the spirit of mature democracy.
    • Scientific research in medicine is the only means to overcome novel and complex diseases such as COVID-19 and that too thrives on the same spirit of debate and criticism.
    • Difficulty in establishing protocols: The difference is that the standards of evidence required, to generate consensus and arrive at the most optimal protocols, are far more rigorous and time-taking than in most other walks of life.

    Issues with plasma therapy

    • The convalescent plasma therapy, that is being currently studied by the Indian Council of Medical Research, through open-label, randomised controlled trial to evaluate it for both safety and efficacy.
    • The problem with the therapy is of the lack of established protocols.
    • What is involved in therapy? The therapy involves infusing patients suffering from COVID-19 with plasma from recovered patients.
    • In theory, the antibodies of the recovered person may help that patient’s immune system fight the virus.
    • While showing great promise, it is a line of treatment that is yet to be validated for efficacy and safety and cannot be deployed widely without caution.
    • The current evidence to conclude anything about the true benefits of this therapy is very thin.
    • Till date, there have been only three published case series for convalescent plasma in COVID-19 with a cumulative of 19 patients.
    • Given the very small number of patients involved in these studies and a publication bias in medicine, we cannot conclude the therapy will work on all patients all the time or even believe that the convalescent plasma was the only reason for their improvement.
    • The most important principle in medical ethics is “do no harm”.
    • The transfusion of convalescent plasma is also not without risks, which range from mild reactions like fever, itching, to life-threatening allergic reactions and lung injury.
    • To recommend a therapy without studying it thoroughly with robust scientific methods may cause more harm than good.
    • Further, convalescent plasma therapy requires intensive resources, healthy COVID-19 survivors to donate, a blood bank with proper machinery and trained personnel to remove plasma, equipment to store it and testing facilities to make sure it has an adequate amount of antibodies.

    Need for the Randomised Controlled Trials (RCT)

    • To say with certainty whether a drug is truly effective or not, the gold standard in medicine is to conduct a randomised controlled trial.
    • In RCT half the patients get the experimental drug and the other half do not.
    • Only if patients in the first half show substantial improvement over those in the second half, it indicates the drug is beneficial.

    Exploring other options and focusing on health infrastructure

    • Too much focus on one approach can take away the focus from other important therapeutic modalities like the use of oxygen therapy, antivirals, and antibiotics for complicated hospital courses.
    • To overcome the pandemic comprehensively, we should focus on strengthening health systems at all levels, including referral systems, supply chain, logistics and inventory management.
    • We need to work on protecting our healthcare workers, improving prevention methods, promoting cough etiquettes, effective quarantining and accurate testing.

    A direct question based on the therapy like- “What is convalescent plasma therapy and what are the issues involved in its adoption?” can be asked by the UPSC.

    Conclusion

    Even these times of collective uncertainty are no reason to lower scientific temper. Science should be driven by reason and evidence with hope as a catalyst but not by either fear or populism. Pushing one or the other therapy without evidence or caution can only set back our larger fight against COVID-19.

  • [pib] Earth’s Magnetosphere and its dynamics

    Scientists at the Indian Institute of Geomagnetism (IIG) have developed a generalized one-dimensional fluid simulation code capable of studying a wide spectrum of coherent electric field structures of earth’s magnetosphere which can be useful in the planning of future space missions.

    The newscard talks of not so new phenomenon but a basic terminology of space sciences. Kindly make a note of what the Magnotesphere is, how it is formed, role of solar winds, Geodynamo etc.

    Earth’s Magnetosphere

    • The magnetosphere is the region of space surrounding Earth where the dominant magnetic field is the magnetic field of Earth, rather than the magnetic field of interplanetary space.
    • It is generated by the interaction of the solar wind with Earth’s magnetic field.

    Features of the Earth’s magnetosphere

    1) Bow shock,

    2) Magnetosheath,

    3) Magnetopause,

    4) Northern tail lobe,

    5) Southern tail lobe,

    6) Plasmasphere,

    7) Solar wind.

    How is it formed?

    • Sun is the major source of plasma deposition in space around the Earth. Sun forces some of its plasma towards the earth in the form of the solar wind.
    • The speed of this wind varies between 300 to 1500 km/s, which carries with it solar magnetic field, called as Interplanetary Magnetic Field (IMF).
    • The magnetic field is generated by electric currents due to the motion of convection currents of a mixture of molten iron and nickel in the Earth’s outer core.
    • These convection currents are caused by heat escaping from the core, a natural process called a geodynamo.

    Why study the magnetosphere?

    • The Earth’s magnetosphere is a vast region which has a finite number of satellites hurtling through this realm.
    • The morphology of the plasma processes around the satellite can be understood quite well.
    • However, when they leave the observational domain of one satellite to enter into another, a vast blind arena is created.
    • How the morphology of these processes changes over space and time can be ideally deciphered only through computer simulations.

    Outcome of the study

    • Almost 99% of matter in the universe is in the form of plasma, Earth’s magnetosphere, too, contains this material and the plasma.
    • They have the ability to hamper the working of a number of satellites that have been placed in orbit in the magnetospheric region.

    Significance

    • Apart from the well being of these expensive satellites, the academic understanding of this region is quite essential to comprehend the cosmos in its entirety.
    • The study will help advance the knowledge of plasma waves, instabilities, and coherent effects associated with wave-particle interactions that are useful in planning of future space missions.
    • It can also lead to precisely controlled fusion laboratory experiments for ever-expanding energy needs of humanity.

  • GI tag to Manipur black rice, Gorakhpur terracotta and Kovilpatti kadalai mittai

    Chak-Hao, the black rice of Manipur and the Gorakhpur terracotta and the Kovilpatti kadalai mittai of Tamil Nadu have bagged the Geogrphical Indication (GI) tag.

    Must read: GI Tags in news for 2020 Prelims

    Chak-Hao

    • Chak-Hao, the scented glutinous rice which has been in cultivation in Manipur over centuries.
    • It is characterized by its special aroma. It is normally eaten during community feasts and is served as Chak-Hao kheer.
    • The application for Chak-Hao was filed by the Consortium of Producers of Chak-Hao (Black Rice), Manipur and was facilitated by the Department of Agriculture.
    • Chak-Hao has also been used by traditional medical practitioners as part of traditional medicine.
    • According to the GI application filed, this rice takes the longest cooking time of 40-45 minutes due to the presence of a fibrous bran layer and higher crude fibre content.
    • At present, the traditional system of Chak-Hao cultivation is practised in some pockets of Manipur.
    • Direct sowing of pre-soaked seeds and also transplantation of rice seedlings raised in nurseries in puddled fields are widely practised in the State’s wetlands.

    Gorakhpur terracotta

    • The terracotta work of Gorakhpur is a centuries-old traditional art form, where the potters make various animal figures like, horses, elephants, camel, goat, ox, etc. with hand-applied ornamentation.
    • The application was filed by Laxmi Terracotta Murtikala Kendra in Uttar Pradesh.
    • Some of the major products of craftsmanship include the Hauda elephants, Mahawatdar horse, deer, camel, five-faced Ganesha, singled-faced Ganesha, elephant table, chandeliers, hanging bells etc.
    • The entire work is done with bare hands and artisans use natural colour, which stays fast for a long time.
    • There are more than 1,000 varieties of terracotta work designed by the local craftsmen.
    • The craftsmen are mainly spread over the villages of Aurangabad, Bharwalia, Langadi Gularia, Budhadih, Amawa, Ekla etc. in Bhathat and Padri Bazar, Belwa Raipur, Jungle Ekla No-1, Jungle Ekla No-2 in Chargawan block of Gorakhpur.

    Kovilpatti kadalai mittai

    • It is a candy made of peanuts held together with glistening syrup, and topped with wisps of grated coconut dyed pink, green and yellow.
    • It is made using all natural ingredients such as the traditional and special ‘vellam’ (jaggery) and groundnuts and water from the river Thamirabarani is used in the production, which enhances the taste naturally.
    • It is manufactured in Kovilpatti and adjacent towns and villages in Thoothukudi district.
    • It is produced by using both groundnuts and jaggery (organic jaggery), in carefully selected quantities from selected specific locations in Tamil Nadu.

    Back2Basics: Geographical Indications in India

    • A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
    • This tag is valid for a period of 10 years following which it can be renewed.
    • Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
    • The first product to get a GI tag in India was the Darjeeling tea in 2004.
    • The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for protection of GI in India.
    • India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
    • Geographical Indications protection is granted through the TRIPS Agreement

  • It is time to design clear rules for departure from accepted norms of fiscal prudence

    This editorial spells out the size of the stimulus package that would be required to restart the economy. It also discusses the possible sources that the government could tap to raise the revenue. Such huge expenditure is likely to result in the huge fiscal deficit which would necessitate that the stimulus is time-bound and transparent.

    Prospects of substantially negative growth

    • Arvind Subramanian has likened the current economic situation to a “pralay (deluge)”.
    • A deluge in which the government should spend more than even what it ought to in a rainy day.
    • India, the former chief economic adviser said that India must plan for a “substantially negative” growth this year that might require an additional fiscal expenditure of Rs 10 lakh crore.
    • Corporate indebtedness was already high before the lockdown.
    • Insolvency cases will mount further.
    • Even companies facing no significant cash flow issues wouldn’t invest in uncertain public health as well as the demand-constrained environment.
    • Banks, too, aren’t going to lend, no matter how much liquidity the Reserve Bank of India (RBI) may infuse.
    • The burden of non-performing assets, which is set to get heavier in the coming months, makes it impossible for them to finance an economic recovery.
    • Last, but not the least, are faced with layoffs and pay cuts, they would rather save and will be afraid to spend.

    Importance of government spending in the current situation

    • Under the circumstances, the onus for ensuring that the wheels of the economy start moving lies on the government.
    • There’s no guarantee of it happening even with all lockdown restrictions being lifted.
    • Without somebody to spend, the economy is in real danger of contraction, which will, in turn, worsen the problem of businesses going bust, joblessness and loan defaults that can spread to the entire financial services industry.

    No “3F” constraints and risk of deflationary shocks

    • The one consolation today is that India is not saddled with its traditional “3F” constraints — food, fuel and foreign exchange — which were triggers for inflation and balance of payments crises.
    • On the contrary, public foodgrain stocks are at an all-time high, global oil prices have crashed and there is no run on the rupee, unlike during the “taper tantrum” period of May-August 2013.
    • Risk of deflationary shock: The risks, if at all, are tilted more towards demand-side “deflationary shocks” than supply-side inflation concerns.

    How will the government manage the resources?

    • The finances of both the Centre and states are in a mess, with receipts from tax and non-tax sources hardly covering even existing expenditures.
    • But governments enjoy sovereign borrowing powers that allow fund-raising at rates below that of triple A-rated instruments issued by private corporates, more so in the present risk-averse scenario.
    • Also, there is the option of deficit financing (“printing money”) through the RBI subscribing to primary auctions of government securities.
    • There are, of course, costs in such powers being exercised.
    • Past precedents — whether the issuance of ad hoc Treasury Bills to the RBI prior to April 1997 or the stimulus package post the 2008 global financial crisis — do not inspire confidence.

    A question based on the stimulus package and its consequences can be framed, for ex- “Do you agree with the view that a stimulus package by the government to restart the economy is necessary? What are the options with the government to raise the money for such a package? What could the consequences of such a package on the economy in the future?”

    Conclusion

    This is the time to design clear rules for departure from accepted norms of fiscal prudence. Any stimulus has to be transparent and time-bound.

  • Ease legal constraints on fiscal expenditure

    The article discusses the two legal provisions that need to be changed in order to provide a fiscal stimulus of the size that could save the economy from collapse. Other major concern after the package would be the inflationary pressure resulting from government spending.

    The urgency of the fiscal package by the Centre

    • The longer the Centre dithers over a big-bang fiscal package to counter the adverse economic fallout of covid-19, the closer it risks pushing India’s economy to the precipice of disaster.
    • The nationwide lockdown has more or less paralysed commercial activity, our exit path looks dreadfully long-winded, and the distress being seen right now could just be an early sign of what is to come.
    • The suffering of citizens will likely expand once the shutdown’s second-order effects, which operate with a lag, begin to kick in.
    • Estimates of ₹10 trillion needed by way of fiscal relief, once seen as too much by some, could yet turn out to be too little.
    • Either way, preparatory work in terms of legal enablers should be done alongside the arithmetic

    Legal constraints in the way of the stimulus programme

    • There are two major constraints that we need to be relieved of—if only temporarily—for a stimulus programme to take shape.
    • The first is the Fiscal Responsibility and Budget Management (FRBM) Act of 2003.
    • And the second is the amendment done in 2016 of the Reserve Bank of India Act to give legislative cover to a flexible inflation-targeting framework that set our central bank the task of keeping India’s retail price index within a certain band.
    • Both of these were aimed at long-term economic stability but made no allowance for a robust fiscal response to the kind of crisis we now face.
    • It would be best if these were tweaked appropriately by a special session of Parliament.
    • If not, then ordinances should be issued to suspend specific restrictions for a while.

    Projections of fiscal deficit

    • Under the budget presented in February, the Centre’s fiscal deficit for 2020-21 was projected at 3.5% of gross domestic product (GDP).
    • This included a half percentage point deviation from the FRBM glide path allowed by the law’s contingency clause.
    • Total expenditure was placed at a little over ₹30.4 trillion, and receipts at ₹22.4 trillion-plus.
    • With tax revenues and asset-sale realizations expected to fall short, the fiscal gap could widen to about ₹10 trillion even without any extra spending.
    • Drastic cuts in expenditure could save some money, but even if a heavy axe is wielded on expenses, the government’s deficit this year would have to exceed twice the legal limit for a stimulus that saves the economy from collapse.
    • If this turns out to be a year of negative growth, as some fear, effecting a revival will only get harder.
    • For pre-emptive action, the government should use its parliamentary clout to permit a limitless deficit for 2020-21.

    A question based on the limits placed by the FRBM Act and the changes brought by the amendment to the RBI Act which mandated RBI with managing the inflation could be asked by the UPSC.

    Prospects of inflationary pressure and RBI’s mandate

    • An effort to spend our way out of an economic morass could prove inflationary if too much cash ends up chasing too few goods and services.
    • As we have undergone both demand and supply shocks, opinion is divided on whether prices will go haywire.
    • This risk would depend on how much cash gets pumped around at what point in time and the pace at which supplies are restored.
    • In other words, the inflation outlook is highly uncertain.
    • But should prices threaten to rise, it would be counterproductive of the central bank to tamp them down by tightening credit.
    • As of now, RBI’s mandate is to keep inflation at 4%, with a tolerance band of 2% on either side.
    • This target is valid till March 2021, but needs to be reviewed right away to let the central bank focus on growth.
    • The acceptable range could be widened and the time limit to achieve the goal lengthened as a special reprieve.

    Conclusion

    A few tweaks of the law must go alongside calculations of a stimulus package designed to relieve economic distress. The government should act on these quickly to save the day.

  • Ganga water improves during lockdown

    The Ganga water quality has improved remarkably during the lockdown period. This highlights the importance of synergy for absolute symbiosis between nature and man as the need of the hour.

    Context

    • The novel coronavirus lockdown (COVID-19) pandemic has put millions in the throes of adversity — and yet, there is a reason to celebrate.
    • Over a month into the nationwide lockdown, air and water pollution levels have shrunk and the wildlife is free.
    • Of 36 monitoring units placed in the Ganga, water quality at 27 points was found suitable for bathing and propagation of wildlife and fisheries in the lockdown period

    Status of rivers in India

    • India’s water bodies are in a poor state. The rivers are becoming dumpyard for untreated sewage and industrial waste.
    • In the name of economic growth, most rivers and streams have been turned into sewer canals and are getting difficult to be treated.
    • It is estimated that every day, almost 40 million litres of wastewater enters rivers and other water bodies; only 37 per cent is adequately treated.
    • A Centre Pollution Control Board (CPCB) report showed that critically polluted river stretches in the country have increased from 302 stretches in 2016 to 351 stretches in 2018.
    • The finding was based on Biological Oxygen Demand (BOD).

    Ganga

    • According to CPCB, more than half of wastewater treatment plants in the basin do not comply with the discharge norms.
    • Since 1985, several programmes and schemes have been launched to clean the Ganga. It began with the Ganga Action Plan I, followed by Ganga Action Plan II.

    • In 2015, the biggest-ever initiative, Namami Gange was launched with a budget of over Rs 20,000.
    • Despite numerous programmes and huge funds, the Ganga still runs polluted.

    The causes

    • More than 80 per cent of pollution in the Ganga is due to domestic sewage from surrounding towns and villages. The rest is contributed by industrial waste.
    • During the lockdown, domestic sewage would have increased owing to increased demand for water to maintain hand-washing hygiene. Industrial waste, however, stopped entering the Ganga.
    • Other activities such as tourism, fairs, bathing and cloth washing near the ghats were curtailed. Experts said these observations reflected that domestic sewerage was not the only cause of concern.
    • When sewage is mixed with industrial effluents, it gets difficult for the river to assimilate pollution.
    • One more reason was high number of western disturbances which brought rain and improved the flow in the river leading to dilution.

    COVID-19’s gift to Ganga

    • After the nationwide lockdown was imposed, within 10 days signs of improvement in water quality started surfacing.
    • At Varanasi’s Nagwa Nala, the Dissolved Oxygen (DO) values were found increased to 6.8 milligram/litre against 3.8 mg/l on March 6, showcasing an extraordinary improvement of 79 per cent in DO values.
    • 30 per cent of the total BOD load was due to industries along the river, which amounted to 130-150 tons per day.
    • Since all major polluting industries are closed, the toxic load is off the river.

    Surprisingly better

    • Ganga water at Haridwar and Rishikesh was reported fit for drinking due to 500 per cent decrease in sewage and industrial effluents.
    • A dip in the number of visitors at ghats in Haridwar also helped the river water quality.
    • The Ganga water has become fit for ‘achaman’, which means ritual sipping, after a long time.

    Bringing the ambitions to reality

    There is an urgent need to:

    • Reinvestigate the main source of pollution in Ganga and reorient all river cleaning policies and programmes based on lockdown findings.
    • Industries need to strictly adhere to discharge norms accompanied with strong enforcement of laws and regulations vis-a-vis strong monitoring and vigilance framework.
    • Setting up of effective interventions to clean rivers, reliable, representative and comprehensive data collected at high frequency in a disaggregated manner.
    • There is an urgent need to expand the network of monitoring stations on the Ganga, the Yamuna and tributaries of Ganga in more places.
    • Over-extraction and over-exploitation of Ganga’s waters have rendered long stretches of the river completely dry for much of the year. There is a need to maintain ecological flow to keep it clean for longer run.
    • Education and awareness needs to be carried out strategically.

    Back2Basics: Biochemical Oxygen Demand

    • BOD is the amount of dissolved oxygen needed (i.e. demanded) by aerobic biological organisms to break down organic material present in a given water sample at certain temperature over a specific time period.
    • The BOD value is most commonly expressed in milligrams of oxygen consumed per litre of sample during 5 days of incubation at 20 °C and is often used as a surrogate of the degree of organic pollution of water.
    • BOD is similar in function to chemical oxygen demand (COD), in that both measure the amount of organic compounds in water.
    • However, COD is less specific, since it measures everything that can be chemically oxidized, rather than just levels of biodegradable organic matter.