August 2020
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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Making agricultural reforms successful

Note4Students

From UPSC perspective, the following things are important :

Prelims level: e-NAM,PM-KISAN, PM-AASHA

Mains level: Paper 3- Issues with agriculture market reforms.

The article analyses the issues with the reforms in the agricultural marketing policies.

Recent reforms in agricultural marketing

  • The 3 recent reforms in agricultural marketing bring major changes in policy.
  • The removal of restrictions under the Essential Commodities Act (ECA) should help attract private investment in agriculture.
  • The two new ordinances are expected to enable inter-State trade and promote contract farming, thereby providing a large number of options to farmers.

Concerns that need to be addressed

1) Policy credibility problem

  • The first problem is ‘time-inconsistency’ problem or the policy credibility problem.
  • This situation arises when a decision maker’s preferences change over time in such a way that the preferences are inconsistent at different points in time.
  • Because the policy signals are not very clear in the last few years as relates to agricultural marketing, as we will see below.
  • This clarity of clear signal is reflected in rollout of multiple schemes: e-NAM, PM-AASHA, PM-KISAN.
  • In 2016, the electronic national agricultural market (e-NAM) was launched with a lot of fanfare.
  • States needed to amend their respective Agricultural Produce Market Committee (APMC) Acts.
  • Several States could not or did not carry out these amendments and the e-NAM proved to be far less effective than desired.
  • As a result, the government reverted back to public price support by launching an ambitious programme, PM-AASHA, in September 2018.
  • The programme was confined to pulses and oilseeds to limit the fiscal costs.
  • However, the initial budgetary outlay did not match the level of ambition of the programme.
  • In addition to the PM-AASHA programme, two Model Acts were formulated by the Central government in 2017 and 2018 to promote agricultural marketing and contract farming in States.
  • States were required to legislate these Model Acts.
  • However, progress has been tardy and many States have not adopted the Model Acts.
  • This uninspiring performance of PM-AASHA necessitated a more radical and direct approach.
  • Thus evolved the PM-KISAN, a direct cash transfer programme, in the interim Budget of 2019-2020 (February 2019).
  • This programme involved a fixed payment of ₹6,000 per annum to each farm household with a budgetary outlay of ₹75,000 crore.
  • The frequent flip-flops in farm policy — from a market-based e-NAM to a public funded PM-AASHA and now back to market-based measures — may not inspire much confidence in the minds of private investors about the continuance of the present policies.

2) Centre-State and State-State relations

  • Recent Ordinances were passed by the Central Government using the constitutional provisions but the implementation of the same vests with the States.
  • Also, inter-State trade involves movement of goods across the State boundaries.
  • Thus, coordination between the Central and the State governments, and also among various States becomes crucial.
  • Also, the States must have faced several problems in legislating and implementing the earlier Model Acts.
  • Thus, the Centre must engage with the States about these constraints in order to iron out the potential problems in the implementation of the ordinances.

3) Multiple market failures and the resultant inter-linkage of rural markets

  • Absence or failure of credit and insurance markets may lead a farmer to depend upon the local input dealer.
  • This, in turn, may tie him to these intermediaries and constrain his choice of output markets.
  • Similarly, the widespread restrictions on land leasing in many States lead to an inefficient scale of production.
  • Thus, reforms in the output market alone are not sufficient.
  • Reforms in output must be supplemented and complemented with the liberalisation of the lease market and better access to credit and insurance markets.

Consider the question “What are the reform measures taken by the government to deal with the issues in the agricultural marketing by farmers? What are the concerns with such measures?”

Conclusion

In conclusion, consistency in policy, collaborative approach and complementary reforms are necessary for the success of the recent agricultural market reforms.


Back2Basics: Agricultural reform

Read in detail about the 3 reforms form here-

Agri reforms and way forward

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

National Recruitment Agency: Taking jobs closer to people

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- National Recruitment Agency

Recruitment reform in the form of National Recruitment Agency will resolve many issues faced by the youth appearing for the multiple government exam.

Context

  • On average, 2.5-3 crore candidates appear for about 1.25 lakh vacancies in the central government every year.
  • But from next year, the NRA will conduct the CET and based on the score, one can apply for a vacancy with the respective agency.

NRA: Composition and functioning

  • The NRA will have representatives from the Ministry of Railways, Ministry of Finance/Department of Financial Services, Staff Selection Commission (SSC), Railway Recruitment Boards (RRBs) and Institute of Banking Personnel Selection (IBPS).
  • A multi-agency body, the NRA will conduct a Common Eligibility Test (CET) to screen/shortlist candidates for the Group B and C (non-technical) posts.
  • The NRA shall conduct a separate CET each for the three levels of graduate, higher secondary (12th pass) and the matriculate (10th pass) candidates for those non-technical posts to which recruitment is presently carried out by the SSC, RRBs and IBPS.

How it will benefit youth

  • It will eliminate multiple tests and save time as well as resources.
  • It will give a big boost to transparency.
  • The multiple recruitment examinations are a burden on the candidates, as also on the respective recruitment agencies, involving avoidable/repetitive expenditure, law and order/security-related issues and venue-related problems.
  • The NRA is a combination of convenience and cost-effectiveness for candidates.
  • Examination centres in every district would greatly enhance access to the candidates located in far-flung areas, with a special focus on creating examination infrastructure in the 117 Aspirational Districts.
  • This will prove a great boon to crores of aspirants residing in hilly, rural and remote areas and most importantly, for female candidates.
  • Taking job opportunities closer to the people is a radical step that would greatly enhance ease of living for the youth.

Consider the question “Recruitment reform in the form of National Recruitment Agency is a radical step that would greatly enhance ease of living for the youth.”

Conclusion

Taking job opportunities closer to the people is a radical step that would greatly enhance ease of living for the youth.

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ISRO Missions and Discoveries

Space industry and challenges

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Opportunities and challenges in outer space

The article analyses opportunities and challenges the outer space technology offers to us.

Emerging trends in space industry

  • The price for reaching low Earth orbit has declined by a factor of 20 in a decade.
  • It enhances human space travel possibilities by leveraging new commercial capabilities.
  • According to a Bank of America Report, the $350 billion space market today will touch $2.7 trillion by 2050.
  • Starlink, the constellation being constructed by SpaceX to provide global Internet access, plans more than 10,000 mass-produced small satellites in low Earth orbit. 
  •  In a decade, 80,000 such satellites could be in space compared to less than 3,000 at present.
  • Companies such as Planet, Spire Global and Iceye are using orbital vantage points to collect and analyse data to deliver fresh insights in weather forecasting, global logistics, crop harvesting and disaster response.
  • Space could prove attractive for high-tech manufacturing too.
  • In short, an exciting new platform is opening up for entrepreneurs.

3 Challenges

1) Governance of outer space

  • Framework for governance of outer space as it becomes democratised, commercialised and crowded is becoming obsolescent.
  • The Outer Space Treaty of 1967 enshrines the idea that space should be “the province of all mankind” and “not subject to national appropriation by claims of sovereignty”.
  • The Rescue Agreement, Space Liability Convention, and the Space Registration Convention expanded provisions of the Outer Space Treaty.
  • The Moon Treaty of 1979 was not ratified by major space-faring nations.
  • Space law does not have a dispute settlement mechanism, is silent on collisions and debris, and offers insufficient guidance on interference with others’ space assets.
  • These gaps heighten the potential for conflict in an era of congested orbits and breakneck technological change.

2) Acknowledging role of non-state entities

  • The legal framework related to outre space is state-centric, placing responsibility on states alone.
  • However, non-state entities are now in the fray for commercial space exploration and utilisation.
  • Some states are providing frameworks for resource recovery through private enterprises.
  • Some scholars and governments view this as against the principle of national non-appropriation, violating the spirit if not the letter of the existing space law.
  • The lack of alignment of domestic and international normative frameworks risks a damaging free-for-all competition for celestial resources involving actors outside the space framework.

3) The arms race in outer space

  • The space arms race is difficult to curb, especially since almost all space technologies have military applications.
  • For example, satellite constellations are commercial but governments could acquire their data to monitor military movements.
  • Investment in technologies that can disrupt or destroy space-based capabilities is under way.
  • Despite concerns about military activity in outer space for long, not much progress has been made in addressing them.
  • The UN General Assembly passes a resolution on Prevention of an Arms Race in Outer Space since 1982.
  • The current geopolitical situation does not hold hope for addressing concerns of a space arms race.

Need for space legislation in India

  • India has invested enormous resources in its space programme through the Indian Space Research Organisation.
  • More importantly, our space assets are crucial for India’s development.
  • The proposed involvement of private players and the creation of an autonomous body IN-SPACe for permitting and regulating activities of the private sector are welcome efforts.
  • However, the space environment that India faces requires us to go beyond meeting technical milestones.
  • We need a space legislation enabling coherence across technical, legal, commercial, diplomatic and defence goals.

Consider the question “Outer space technology is expanding its horizon day by day. However, there are certain challenges the expansion of the space technology faces. What are these challenges and suggest ways to deal with such challenges.”

Conclusion

Our space vision also needs to address global governance, regulatory and arms control issues. As space opens up our space vision needs broadening too.

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Women empowerment issues – Jobs,Reservation and education

How marriage age and women’s health are linked?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: IMR, MMR

Mains level: Marriage age issues

PM had announced a panel to fight malnutrition in young women and ensure they get married at the right age. Take a look at how the two are linked:

How prevalent is underage marriage?

  • Data show that the majority of women in India marry after the age of 21.
  • Chart 1 shows the mean age of women at marriage is 22.1 years, and more than 21 in all states. This does not mean that child marriages have disappeared.
  • The latest National Family Health Survey (NFHS-4) found that about 26.8% of women aged 20-24 (Chart 2) were married before adulthood (age 18).

Try this question for mains:

Q. Discuss how marriage age and women’s health are linked with each other?

How does the age of marriage correlate with health?

  • Preventing early marriage can reduce the maternal mortality ratio and infant mortality ratio.
  • At present, the maternal mortality ratio — the number of maternal deaths for every 100,000 children born — is 145.
  • India’s IMR shows that 30 of every 1,000 children born in a year die before the age of one.
  • Young mothers are more susceptible to anaemia. More than half the women of reproductive age (15-49 years) in India are anaemic.

What delayed marriage can alter?

  • Poverty, limited access to education and economic prospects, and security concerns are the known reasons for early marriage.
  • If the main causes of early marriage are not addressed, a law will not be enough to delay marriage among girls.

What do the data show?

  • Women in the poorest 20% of the population married much younger than their peers from the wealthiest 20% (Chart 5).
  • The average age at marriage of women with no schooling was 17.6, considerably lower than that for women educated beyond class 12 (Chart 6).
  • Almost 40% of girls aged 15-18 do not attend school, as per a report of the National Commission for Protection of Child Rights.
  • Nearly 65% of these girls are engaged in non-remunerative work.
  • That is why many believe that merely tweaking the official age of marriage may discriminate against the poorer, less-educated and marginalised women.

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BRICS Summits

BRICS Innovation Base for 5G and AI Technology

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BRICS, AI

Mains level: 5G Technology and the Huawei issue

China has made a proposal to create what it has termed a BRICS innovation base to take forward 5G and Artificial Intelligence (AI) cooperation.

Try this question from CSP 2019:

Q.With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

  1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
  2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

BRICS Innovation Base

  • China is considering the establishment of a BRICS innovation base in China, in order to strengthen practical cooperation with the BRICS.
  • It has urged fellow nations, including India, to boost cooperation in areas including 5G and AI in partnership with Huawei.
  • The move could pose an awkward question for India, which is the only country in the grouping that is leaning towards excluding Chinese participation in the roll-out of India’s 5G networks.

Huawei in BRICS

  • In South Africa, Huawei is providing services to three of its telecom operators in the roll-out of their 5G networks.
  • Brazil has allowed participation in trials but yet to take a final call.
  • India is unlikely to allow Chinese participation in 5G, particularly in the wake of recent moves to tighten investment from China and national security concerns.

Back2Basics: BRICS

  • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
  • The BRICS Leaders Summit is convened annually. It does not exist in form of organization, but it is an annual summit between the supreme leaders of five nations.
  • On November 30, 2001, Jim O’Neill, a British economist who was then chairman of Goldman Sachs Asset Management, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China.
  • The grouping was formalized during the first meeting of BRIC Foreign Ministers on the margins of the UNGA in New York in September 2006.
  • The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
  • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.

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Air Pollution

[pib] Nationally Determined Contributions (NDC) Transport Initiative for Asia (TIA)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NDC, TIA

Mains level: India's NDC

NITI Aayog will virtually launch the India Component of the Nationally Determined Contributions (NDC)–Transport Initiative for Asia (TIA).

Try this PYQ:

Q.The term Intended Nationally Determined Contribution is sometimes seen in the news in the context of:

(a) Pledge made by the European countries to rehabilitate refuges from the war-affected Middle East.

(b) Plan of nation outlined by the countries of the world to combat climate changes.

(c) Capital contributed by the member countries in the establishment of Asian Infrastructure Investment Bank.

(d) Plain of action outlined by the countries of the regarding SDGs.

What is NDC-TIA?

  • It is a joint programme, supported by the International Climate Initiative (IKI) of the German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).
  • On behalf of the GoI, NITI Aayog will be the implementing partner.
  • It aims to promote a comprehensive approach to decarbonize transport in India, Vietnam, and China.
  • It is implemented by a consortium of seven other organisations.

Working

  • The programme has a duration of 4 years.
  • The India Component will focus on establishing a multi-stakeholder dialogue platform for decarbonizing transport in India, strengthening GHG and transport modelling capacities.
  • It would help in financing climate actions in transport, offering policy recommendations on electric vehicle (EV) demand and supply policies.

Why need TIA?

  • India has a massive and diverse transport sector that caters to the needs of billion people.
  • It has the world’s second-largest road network, which contributes to maximum GHG emissions through all means of transportation.
  • With increasing urbanisation, the fleet size i.e. the number of sales of vehicles is increasing rapidly.
  • It is projected that the total number of vehicles will be doubled by 2030.

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

[pib] Export Preparedness Index (EPI) 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Export Preparedness Index (EPI)

Mains level: Export promotion measures

NITI Aayog in partnership with the Institute of Competitiveness has released the Export Preparedness Index (EPI) 2020.

Try this PYQ:

Q.Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index? (CSP 2019)

(a) Maintenance of law and order

(b) Paying taxes

(c) Registering property

(d) Dealing with construction permits

EPI 2020

  • EPI intends to identify challenges and opportunities; enhance the effectiveness of government policies; and encourage a facilitative regulatory framework.
  • The structure of the EPI includes 4 pillars –Policy; Business Ecosystem; Export Ecosystem; Export Performance.
  • It has 11 sub-pillars –Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Access to Finance; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.

Highlights of the EPI

  • This edition of the EPI has shown that most Indian states performed well on average across the sub-pillars of Exports Diversification, Transport Connectivity, and Infrastructure.
  • Overall, most of the Coastal States are the best performers. Gujarat, Maharashtra and Tamil Nadu occupy the top three ranks.
  • Six of eight coastal states feature in the top ten rankings, indicating the presence of strong enabling and facilitating factors to promote exports.
  • In the landlocked states, Rajasthan has performed the best, followed by Telangana and Haryana.
  • Among the Himalayan states, Uttarakhand is the highest, followed by Tripura and Himachal Pradesh.
  • Across the UTs, Delhi has performed the best, followed by Goa and Chandigarh.

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Coronavirus – Economic Issues

Eat Out to Help Out Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Eat Out to Help Out Scheme

Mains level: NA

Since the lockdown began in India, different bodies representing the country’s hospitality sector have repeatedly asked the government for financial assistance to help tide over the crisis. UK’s popular Eat Out to Help Out (EOHO) Scheme can be an example of the kind of intervention in India.

Note: The ‘Eat Out to Help Out’ Scheme recently seen in news is related to Hospitality. One may get confused over Poverty and Hunger.

What is the EOHO Scheme?

  • The EOHO Scheme is an economic recovery measure by the UK government to support hospitality businesses as they reopen after the lockdown.
  • The scheme was announced as part of the Plans for Jobs summer economic update.
  • Under the EOHO Scheme, the government would subsidise meals (food and non-alcoholic drinks only) at restaurants by 50 per cent.
  • There is no minimum spending and no limit on the number of times customers can avail the offer, since the whole point of the scheme is to encourage a return to dining in restaurants.

Why was this scheme deemed necessary?

  • All over the world, the food services sector is one of the worst affected by the pandemic.
  • The top two concerns were customers avoiding restaurants for fear of contracting the virus and customers having less disposable income for dining out.
  • Instead of delivering a financial package to operators, it makes eating out more affordable for consumers directly and helps restore demand.
  • Restoring consumer demand is being seen as crucial to the UK’s economic recovery.

Can India benefit from such a scheme?

  • The main problem confronting the restaurant industry, following Unlock 1.0 in June, has been consumer fear, even as the government has remained silent about specific recovery packages aimed at the hospitality industry.
  • The government needs to work on the demand side.

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