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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

AI integration will be at the core of the transition

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AI

Mains level: Paper 3- AI and its applications

The article tracks the latest developments in the field of AI by the leading technology companies.

Integrating AI in the phone

  • Over the last few years, most mobile phone manufacturers have been content with design upgrades, apart from specs.
  • Samsung launched a device which has been able to integrate artificial intelligence (AI) in its phones.
  • In the case of S-Pen, Samsung demonstrated that it has been able to reduce latency between pen operation and what appears on the screen to 9 milliseconds using predictive analysis.
  • Latency is a major concern in technologies like smart cars.
  • Samsung also showcased active noise cancellation, which again uses prediction analysis to drown out ambient noises.
  • Apple’s virtual event also focused on higher integration and more uses of AI.
  • Siri has become even smarter and is increasingly being integrated with more services.
  • The camera function of Apple devices, for instance, pieces together a picture using best angles to create the perfect image.
  • Samsung and Apple now can monitor health more accurately using their smartwatches.

Future scope

  • This indicates how much further we are moving towards a future with more edge computing.
  • This computing will power technologies like a smart car.
  • Given the progress in IoT, there is a huge likelihood that those betting early on AI integration will reap the biggest rewards of the connected living market.

Consider the question “What is artificial intelligence? How it could transform the world of technology?”

Conclusion

Integration of AI in the devices we use in everyday life holds a promising future for us. India must encourage its development.


Source-

https://www.financialexpress.com/opinion/ai-integration-will-be-at-the-core-of-the-transition-to-future-technologies-such-as-smarts-cars/2047309/

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Banking Sector Reforms

Balancing the interest of lenders and borrowers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Problems of banks in India

The article suggests the 5 point strategy to balance the interest of borrowers and lenders. Banks hold the special significance for the country and so require special and stricter regulation.

Context

  •  COVID creates deep pain but we must resist consistently choosing borrowers over lenders.
  • We should persist with our multi-year five-pillar strategy to sustainably raise our Credit to GDP ratio from 50 per cent to 100 per cent.

Issue of lending

  • A modern economy grows by lending.
  •  But fiscal constraints or natural disasters often create temptations to disguise spending as lending.
  • The last 20 years have given three lessons:
  • 1) Giving loans is easier than getting them back.
  • Corporate credit growing from Rs 18 lakh crore in 2008 to Rs 54 lakh crore in 2014 created a Rs 12 lakh crore bad loan problem.
  • 2) Accounting fudging and restructuring would not help.
  • 3) Government banks need more than capital.
  • Government banks’ risk-weighted assets are lower than two years ago despite a Rs 2 lakh crore capital infusion.

History recommends patiently balancing financial inclusion and stability by persisting with our five-pillar strategy.

1) Bank competition

  • Raising credit availability and lowering its price needs competition-driven innovation.
  • Capital should be chasing Indian banking given its high net interest margins, high market cap to book value ratios, and massive addressable market.
  • Yet, the RBI’s on-tap licencing has few applications pending.
  • We need many more banks.

2) Private bank governance

  • Private banks are only 30 per cent of deposits but 80 per cent of bank market capitalisation.
  • Private banks are a special species with 20 times leverage, but this makes privatised gains and socialised losses possible.
  • Recent failures suggest problems with public shareholder collective action and the attention, skill, and courage of board directors.
  • Private bank governance must move from a perpetual private fiefdom to trustees that hand over in better condition to the next generation.

3) Government bank governance

  • Over 10 years, government companies have sunk from 30 per cent of India’s market capitalisation to 6 per cent.
  • Government banks mirror this decline — their 70 per cent bank deposit share translates to only 20 per cent bank market capitalisation share.
  • Many have irrational employee costs to market capitalisation ratios ex- Bank of India with 58 per cent.
  • We need only four government banks with strong governance and no tax access for capital.

4) RBI’s regulation and supervision

  • Recent failures in financial institutions reinforce the importance of statutory auditors, ethical conduct, shareholder self-interest, and risk management.
  • They also suggest a first-principles review that raises the RBI’s regulation and supervision.
  • Zero failure is impossible, but the RBI should boldly re-imagine its current mandate, structure and technology.

5) Non-bank regulatory space

  • Regulatory differences traditionally existed between banks and non-banks.
  • But progress in payments, MSME lending, and consumer credit suggest that non-banks are as important for financial inclusion.
  • They need more regulatory space and supervision.

Conclusion

We won’t test the RBI’s COVID worst-case scenario of 14.7 per cent bad loans but handling the inevitable COVID bank pain needs resisting short-termism. In the long run, we are not all dead.

Original article: https://indianexpress.com/article/opinion/columns/rbi-bank-and-the-covid-pain-india-gdp-6543101/

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Innovation Ecosystem in India

Importance of the post academic research

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Issue of Research and Development in India

Post-academic research have a direct bearing on national development. India needs to focus on it along with academic research. This article explains this issue.

Context

  • The Government of India is in the process of revisiting the Science, Technology and Innovation (STI) Policy.
  • At this stage we need to ponder the question: what kind of research should be funded?

How to measure the maturity level of a particular technology?

  • Experts have come up with frameworks and terminology to provide a comprehensive picture and avoid any value judgement.
  • One approach was proposed by NASA in the form of Technology Readiness Levels (TRL).
  • TRL-1 corresponds to observation of basic principles. Its result is publications.
  • TRL-2 corresponds to formulation of technology at the level of concepts.
  • Then the TRL framework advances to proof of concept, validation in a laboratory environment, followed by a relevant environment, and then to prototype demonstration, and ending with actual deployment.
  • An alternative is to use the terminology ‘Academic Research (AR)’, and ‘Post-Academic Research (PAR)’.
  • To provide some granularity, one can divide PAR into early-stage PAR, and late-stage PAR.
  • Late-stage PAR has to be done by large laboratories (national or those supported by industry).
  • AR and early-stage PAR can be done at higher education institutions and large laboratories.

Importance of Post-Academic Research(PAR)

  • From the perspective of national development, pursuit of AR alone, while necessary, is not sufficient.
  • AR and PAR, when pursued together and taken to their logical conclusion, will result in a product or a process,
  • Or it can also result in a better clinical practice, or a scientifically robust understanding of human health and disease, or provide inputs for a policy decision.

Issues in comparing investment in research among countries

  • 1) We cannot compare data with other countries without having correspondence between India’s data and data reported by others.
  • Countries belonging to the Organisation for Economic Cooperation and Development (OECD) report research statistics according to the Frascati Manual.
  • 2) India has to decide where to increase investment: in AR or in PAR.

Research and national development

  • Investment in research can translate into national development only through pursuit of PAR.
  • Our industry has not reached a stage where they can absorb research being done by higher education institutions.
  • This reveals that research being pursued is either not addressing national needs or is limited to AR.

Way forward

  • Judging the growth of Science-and-Technology based only on publications (e.g. research papers) provides an incomplete picture.
  • We should increasing the technology intensity of industry, which was identified as one of the goals of the STI policy issued in 2013.
  • This needs reiteration and a mechanism should be devised to monitor progress with the objective of becoming an ‘Atmanirbhar Bharat’.
  • The STI policy should emphasise PAR to ensure that investment in research results in economic growth.
  • To motivate the research community to pursue at least early-stage PAR, the reward system needs significant reorientation.
  • Academics in higher education institutions pursuing AR should pursue early-stage PAR themselves, or team up with those who are keen to pursue PAR.

Consider the question “Examine the factors that responsible for the lack of research and development in India? Also, elaborate on the importance of post-academic research in the country.”

Conclusion

These factors are sufficient to indicate that academic research is necessary, but not sufficient and we must focus on PAR adequately.

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Back in news: EWS quota law

Note4Students

From UPSC perspective, the following things are important :

Prelims level: EWS Quota , Article 15, 16

Mains level: EWS quota and related issues

The Supreme Court has referred to a five-judge Constitution Bench a batch of petitions challenging the 103rd Constitution Amendment of 2019 that provides 10% reservation for Economically Backward Section (EWS).

Try this question for mains:

Q.What are the various constitutional challenges posed by the 103rd Constitutional Amendment Act?

What does the reference mean?

  • A reference to a larger Bench means that the legal challenge is an important one.
  • As per Article 145(3) of the Constitution, “the minimum number of Judges who are to sit for the purpose of deciding any case involving a substantial question of law as to the interpretation of this Constitution” shall be five.
  • The Supreme Court rules of 2013 also say that writ petitions that allege a violation of fundamental rights will generally be heard by a bench of two judges unless it raises substantial questions of law.
  • In that case, a five-judge bench would hear the case.
  • Laws made by Parliament are presumed to be constitutional until proven otherwise in court.
  • The SC had refused to stay the 103rd Amendment. A reference will make no difference to the operation of the EWS quota.

What is the 103rd amendment about?

  • It provides for 10% reservation in government jobs and educational institutions for EWS, by amending Articles 15 and 16 that deal with the fundamental right to equality.
  • While Article 15 prohibits discrimination on grounds of religion, race, caste, sex or place of birth, Article 16 guarantees equal opportunity in matters of public employment.
  • An additional clause was added to both provisions, giving Parliament the power to make special laws for EWS as it does for SCs, STs and OBCs.
  • The states are to notify who constitute EWS to be eligible for reservation.

Issues with the law

The SC agreed that the case involved at least three substantial questions of law, whether:

  • First, it violates the Basic Structure of the Constitution. This argument stems from the view that the special protections guaranteed to socially disadvantaged groups is part of the Basic Structure and that the 103rd Amendment departs from this by promising special protections on the sole basis of economic status.
  • Second, it violates the SC’s 1992 ruling in Indra Sawhney Case, which upheld the Mandal Report and capped reservations at 50%. In the ruling, the court held that economic backwardness cannot be the sole criterion for identifying backward class.
  • The third challenge has been of private, unaided educational institutions. They have argued that their fundamental right to practise a trade/profession is violated when the state compels them to implement its reservation policy and admit students on any criteria other than merit.

What are the government’s arguments?

  • The Ministry of Social Justice and Empowerment filed counter-affidavits to defend the amendment.
  • When a law is challenged, the burden of proving it unconstitutional lies on the petitioners.
  • The government argued that under Article 46 of the Constitution, part of DPSP, it has a duty to protect the interests of economically weaker sections.

1) The very identity of the Constitution has not been altered.

2) Countering the claims about Indra Sawhney principle, the government relied on a 2008 ruling— Ashok Kumar Thakur v Union of India, in which the SC upheld the 27% quota for OBCs. Here, the court accepted that the definition of OBCs was not made on the sole criterion of caste but a mix of caste and economic factors, to prove that there need not a sole criterion for according reservation.

3) For the unaided institutions, the government argued that the Constitution allows the Parliament to place “reasonable restrictions” on the right to carry on trade.

B2BASICS

What are the significances of the EWS quota?

  • Address economic inequality: Currently, the economically weaker sections of citizens have remained excluded from attending higher educational institutions and public employment due to their financial incapacity. Therefore, the 10% quota is progressive and could address the issues of educational and income inequality in India.
  • Constitutional recognition:The proposed reservation through a constitutional amendment would give constitutional recognition to the poor from the upper castes.
  • Remove stigma associated with Reservation: It will gradually remove the stigma associated with reservation because reservation has historically been related with caste and most often the upper caste look down upon those who come through the reservation.

What are the challenges before the EWS quota?

1.Eligibility criteria:

  • Critics claim that the 8 lakh income threshold is very high and will practically cover nearly all population not already covered by reservations.
  • Notably, NSSO and IT department data shows that at least 95% of Indian families will fall within this limit.
  • Other eligibility criteria have also claimed to be flawed.

2.Sole economic criteria:

  • The Supreme Court in Indra Sawhney judgement has maintained that a backward class cannot be determined mainly with respect to the economic criterion.
  • Hence introducing reservation based on economic criteria would invite judicial scrutiny.

3.50 percent limit:

The SC has put a cap for reservations at 50% – the current proposal will exceed the limit and hence could be legally challenged.

4.Determining economic backwardness:

This is a  major challenge as there are concerns regarding the inclusion and exclusion of persons under the criteria.

5.Enforcement:

The implementation of the legislation would also be a great challenge since the states do not have the finances to enforce even the present and constitutionally mandated reservations.

Shrinking jobs:

When the government is trying to restrict its public services through the advancement of technology in the government system, providing quota in jobs will be a useless move.

6.Encouraging reservations: 

The intent of constitutional makers as originally manifested via Article 15 and 16 was to be reviewed after 10 years. However, instead of restricting the policy of positive discrimination, the government is pushing it in some or other forms.

7.Populist initiative:

When elections are near, many populists’ measures are put forward by political parties such as loan waiver, reservations, etc. Considering the low levels of political literacy and awareness among masses, political parties take leverage of the same thus impacting the socio-economic and political structure at large.

8.Lack of proofs to back the outcomes:

Even after years of reservation policy, there are no considerable pieces of evidence to support the achievements of the original intent of affirmative action. For instance, only about 4 percent each of rural Scheduled Tribe and Scheduled Caste households have a member in a government job.

9.Lack of Level Playing Field:

It has to be noted that the Upper ladder in the reserved category are mainly benefitted from the policy whereas the benefits do not reach the marginalized. It may also happen with respect to reservation based on economic criteria as well.

What is the way forward?

  • One-time usage: Make sure that beneficiaries use their reserved category status only once in their lifetime. For example, a person shall not be allowed to use the reservation for jobs if he/she has already used it for college admissions. Aadhaar can be utilized for this purpose in order to prohibit the second usage.
  • Quality of education: The government should focus on quality in addition to access. For instance, it is no use to give reservation to the poor people in college admission if the quality of the education is low = they get no job. Hence, the quality of education should be given due attention from the primary school stage itself.
  • Vocational education: should be promoted with the necessary skills and knowledge to make them industry ready.
  • Entrepreneurship: Create a spirit of entrepreneurship and make them job giver instead of a job seeker.
  • Social upliftment measures: Alternative as well as effective social upliftment measures should be adopted instead of just focussing on reservation aspect.

 

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RBI Notifications

How are inflation rate and interest rate linked?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Monetary Policy tools

Mains level: Not Much

The Monetary Policy Committee of the RBI has decided to keep the benchmark interest rates of the economy unchanged.

Try this PYQ:

Q.Which one of the following is not the most likely measures the Government/RBI takes to stop the slide of Indian rupee? (CSP 2019)

(a) Curbing imports of non-essential goods and promoting exports

(b) Encouraging Indian borrowers to issue rupee-denominated Masala Bonds

(c) Easing conditions relating to external commercial borrowing

(d) Following an expansionary monetary policy

What is the link between growth, inflation and interest rates?

  • In a fast-growing economy, incomes go up quickly and more and more people have the money to buy the existing bunch of goods.
  • As more and more money chases the existing set of goods, prices of such goods rise.
  • In other words, inflation (which is nothing but the rate of increase in prices) spikes.

How interest rates dominate?

  • To contain inflation, a country’s central bank typically increases the interest rates in the economy.
  • By doing so, it incentivizes people to spend less and save more because saving becomes more profitable as interest rates go up.
  • As more and more people choose to save, money is sucked out of the market and inflation rate moderates.

What happens when growth rate decelerates or contracts?

  • When growth contracts or when its growth rate decelerates, people’s incomes also get hit.
  • As a result, less and less money is chasing the same quantity of goods.
  • These results in either the inflation rate decline.
  • In such situations, a central bank cuts down the interest rates so as to incentivise spending and by that route boost economic activity in the economy.
  • Lower interest rates imply that it is less profitable to keep one’s money in the bank or any similar saving instrument.
  • As a result, more and more money comes into the market, thus boosting growth and inflation.

Why has RBI not raised interest rates this quarter?

  • RBI is facing an odd situation at present: GDP is contracting even as inflation is rising.
  • This is happening because the pandemic has reduced demand, on the one hand, and disrupted supply on the other.
  • As a result, both things are happening — falling growth and rising inflation.
  • It is true that for containing inflation, RBI should raise interest rates.
  • And under normal circumstances, it would have done just that. But raising interest rates at this stage would be catastrophic for India’s GDP growth.

Risks of altering interest rates

  • If the RBI cuts the interest rate, it may be fuelling retail inflation further. It must be remembered that inflation hits the poor the hardest.
  • So, the RBI has chosen to do what many expected it to do: stay put and waits for another couple of months to figure out how growth and inflation are shaping up.

Back2Basics: Monetary Policy Committee (MPC)

  • The RBI Act, 1934 (RBI Act) was amended by the Finance Act, 2016,  to provide for a statutory and institutionalized framework for an MPC, for maintaining price stability, while keeping in mind the objective of growth.
  • The MPC is entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.
  • The meetings of the MPC are held at least 4 times a year and it publishes its decisions after each such meeting.
  • As per the provisions of the RBI Act, out of the six members of the committee, three members are from the RBI and the other three Members of MPC are appointed by the Central Government.
  • Governor of the RBI is ex officio Chairman of the committee.

Economics | Monetary Policy Explained with Examples

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International Space Agencies – Missions and Discoveries

SN5 Starship by SpaceX

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SN5 Starship

Mains level: Commercial crew programme by SpaceX

SpaceX has successfully test-launched its “Mars ship”, a stainless steel test vehicle called SN5, and which is a part of the Starship spacecraft.

Elon Musk’s aerospace company has been putting continuous wins on the board ever since it became the first privately funded group to put a payload in Earth orbit.

What is Starship?

  • Designed by SpaceX, Starship is a spacecraft and super-heavy booster rocket meant to act as a reusable transportation system for crew and cargo to the Earth’s orbit, Moon and Mars.
  • SpaceX has described Starship as “the world’s most powerful launch vehicle” with an ability to carry over 100 metric tonnes to the Earth’s orbit.
  • Starship has been under development since 2012 and is a part of Space X’s central mission to make interplanetary travel accessible and affordable and to become the first private company to do so.

So what all can Starship do?

  • SpaceX is planning its first cargo mission to the red planet by 2022 and by 2024, the company wants to fly four ships including two cargo and two crewed ones to Mars.
  • Once functional, the Starship spacecraft will enter Mars’ atmosphere at a speed of 7.5 km per second and will be designed to withstand multiple entries.
  • Starship is also expected to help carry large amounts of cargo to the Moon, for human spaceflight development and research.
  • Beyond the Moon, the spacecraft is being designed for carrying crew and cargo for interplanetary missions as well.

A quest for reusability

  • Therefore, the company is working on building a fleet of reusable launch vehicles, capable of carrying humans to Mars and other destinations in the solar system.
  • Reusability is at the heart of making interplanetary travel accessible.

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J&K – The issues around the state

Appointment of new Lt. Governor of the UT of J&K

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Lt. Governor and its appointment

Mains level: Administrative differences in governance of UTs

A veteran politician has been appointed as Lieutenant Governor of the Union Territory of Jammu and Kashmir.

Try this PYQ:

Q.Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past? (CSP 2019)

(a) First Administrative Reforms Commission (1966)

(b) Rajamannar Committee (1969)

(c) Sarkaria Commission (1983)

(d) National Commission to Review the Working of the Constitution (2000)

Office of the Lt. Governor

  • A Lt. Governor is the constitutional head of the union territories in India.
  • She/he is appointed by the President of India for a term of five years and holds office at the President’s pleasure.
  • Since the union territories of Delhi, J&K and Puducherry have a measure of self-government with an elected legislature and council of ministers, the role of the lieutenant governor there is mostly a ceremonial one, akin to that of a state’s governor.
  • In Andaman and Nicobar Islands and Ladakh however, the lieutenant governor holds more power, being both the head of state and head of government.
  • The other three UTs—Chandigarh; Dadra and Nagar Haveli and Daman and Diu; and Lakshadweep—are governed by an administrator.

Some related facts

  • Unlike the lieutenant governors of other territories, they are usually drawn from the IAS or IPS.
  • Lieutenant governors do not hold the same rank as a governor of a state in the list of precedence.
  • Since 1985 the Governor of Punjab has also been the ex-officio Administrator of Chandigarh.

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[pib] Sahakar Cooptube NCDC Channel

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NCDC and its formation

Mains level: Not Much

Union Minister of Agriculture & Farmers’ Welfare has launched the Sahakar Cooptube NCDC Channel, a new initiative by National Cooperative Development Corporation (NCDC).

Note: Article 19 states that the Right to form co-operative societies is a Fundamental Right and DPSP Article 43-B provides for the promotion of co-operative societies.

Sahakar Cooptube

  • The Sahakar Cooptube Channel aims to facilitate the involvement of the youth in the cooperative movement.
  • Cooperatives lend strength to farmers to minimize risks in agriculture and allied sectors and act as a shield against exploitation.
  • The channel will give a boost to Atmanirbhar Bharat Abhiyan under which the government has announced a series of transformative measures and sector-specific financial packages to help agriculture.
  • The initiatives are steps towards One Nation One Market with the objective for India to become a food factory of the world.

Back2Basics: NCDC

  • The NCDC is a statutory Corporation set up under an Act of Parliament on 13 March 1963.
  • The objectives of NCDC are:

planning and promoting programmes for production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, industrial goods, livestock and certain other notified commodities and services on cooperative principles and for matters concerned therewith or incidental thereto

  • NCDC Act has been further amended which will broad-base the area of operation of the Corporation to assist different types of cooperatives and to expand its financial base.
  • NCDC will now be able to finance projects in the rural industrial cooperative sectors and for certain notified services in rural areas like water conservation, irrigation and micro-irrigation, agri-insurance, agro-credit, rural sanitation, animal health, etc.

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