February 2021
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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

Animal Husbandry Infrastructure Development Fund (AHIDF)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Animal Husbandry Infrastructure Development Fund (AHIDF)

Mains level: Paper 3- Animal Husbandry Infrastructure Development Fund (AHIDF)

Importance of animal husbandary and dairy sector

  • As an allied industry of agriculture, the animal husbandry and dairy sector collectively employs more than 100 million people.
  • Since the bulk of establishments in this sector is concentrated in rural India, the socio-economic relevance of this sector cannot be overstated.
  • the Central government unveiled a string of measures to cushion the economy, as a part of which the Animal Husbandry Infrastructure Development Fund (AHIDF) was announced.

More about AHIDF

  • The AHIDF has been set up with an outlay of ₹15,000 crore.
  • As per the provisions of AHIDF, a project will be eligible for a loan amount that covers up to 90% of the estimated cost –
  • There will be interest subvention of 3% for all eligible entities.
  • Applicants can submit the proposal with a complete Detailed Project Report through the Udyami Mitra Portal.
  • The fund includes a diverse set of stakeholders such as FPOs, private dairy players, individual entrepreneurs, and non-profits within its ambit.

Strengthening dairy value chain

  • There is a pressing need to enhance chilling infrastructure at collection centres by setting up bulk milk coolers.
  • If the infrastructure needs for milk processing and distribution are included, then the overall potential investment opportunity is to the tune of ₹1,40,000 crore across the dairy value chain.
  • There is also considerable potential to increase the productivity of cattle, especially by enhancing the quality of animal feed.
  • With this in mind, the AHIDF has been designed to support the establishment of animal feed plants of varying capacities.
  • The infrastructure gap of 10-18 MMT in the production and supply of affordable compound cattle feed translates into an investment potential of around ₹5,000 crore.

Boosting the poultry industry

  • There are not only economic but nutritional benefits to boosting the poultry segment’s output, efficiency and quality.
  • India is the fourth largest chicken meat producer and the second largest egg producer in the world.
  • India is well-positioned to help mitigate rampant malnutrition given that chicken meat provides the cheapest source of protein per unit.
  • With eggs being introduced as part of the mid-day meal within several anganwadis in the country, an upgradation in poultry infrastructure would be closely intertwined with social justice outcomes too.
  • Macro benefits regarding climate change and employment are linked to this sector.
  • Enhanced infrastructure can make processing units more energy-efficient and help mitigate their carbon footprint.

Consider the question ” As an allied industry of agriculture, the animal husbandry and dairy sector are important for rural area and the socio-economic relevance of this sector cannot be overstated. In light of this, examine the role Animal Husbandry Infrastructure Development Fund (AHIDF) could play in transforming rural economy.”

Conclusion

The AHIDF also has the potential to create over 30 lakh jobs, even as it overhauls domestic infrastructure towards giving greater prominence to India’s dairy and livestock products in the global value chain.

 

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Foreign Policy Watch: India-China

China-Taiwan conflict

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India's relations with Taiwan

The article underscores the centrality of Taiwan in the realms of semiconductor production and how that dominant spills over in geopolitics.

Silicon shield of Taiwan

  • Taiwan’s security situation has been worsening amidst mounting economic, political and military pressure from China.
  • Any Chinese attack on Taiwan that disrupts the flow of semiconductors would produce significant challenges not only for the US but also China that relies on semiconductor supplies from Taiwan.
  • That factor appears to be preventing the crisis from boiling over into a full-scale war that could draw the US and Japan into it.
  •  It is Taiwan’s so-called “silicon shield”.

Taiwan’s dominance in semiconductor industry

  • Taiwan is the world’s leading producer of semiconductors and other electronic components.
  • The Taiwan Semiconductor Manufacturing Company (TSMC) has more than 55 per cent of the global market share in the production of high-end custom-made chips.
  • Of the two rival companies that have survived, US-based Intel is in trouble and Korea’s Samsung has challenges of its own.
  •  There will be no generation of data without the semiconductors.
  • It might be more accurate to say that “semiconductors are the new oil” and their production is increasingly dominated by Taiwan and the TMSC.

Geopolitics over Taiwan

  • As its economic heft and political salience rose in the 21st century, China has ratcheted up pressure on countries that have diplomatic relations with Taiwan.
  • China has also compelled international organisations to push Taiwan out of their activities, even when Taiwan had much to contribute.
  • Amidst the deterioration of US-China relations in recent years, President Donald Trump was far more supportive of Taiwan than his recent predecessors.
  • The Biden team has also signalled continuity with Trump’s Taiwan policies.
  • All indications are that Washington will continue to seek some technological decoupling and diversification of sensitive supplies away from China.
  • Taiwan will inevitably be the key element in the American quest for resilient supply chains in the digital domain.

Opportunity for India

  • Taiwan’s position as a semiconductor superpower opens the door for more intensive strategic-economic cooperation between Delhi and Taipei.
  • Part of the problem is that India’s strategic community continues to view Taiwan as an adjunct to India’s “One-China policy”.
  • India’s policy oscillates between keeping needless distance with Taipei when ties with Beijing are warm and remembering it when Sino-Indian ties enter a freeze.
  • This changed in the early 1990s, when it began to engage with Taiwan, but the policy remained a restricted one.
  • In the last few years, though, there has been a steady expansion of bilateral engagement.
  • Trade has increased from about $1 billion in 2001 to about $7 billion in 2018.
  • India has made a special effort to woo Taiwanese companies that are moving some of their production away from China.
  • India is yet to tap into the full range of commercial and technological opportunities possibilities with Taiwan.
  • This is particularly true of semiconductor production.

Way forward

  • Delhi must begin to deal with Taiwan as a weighty entity in its own right that offers so much to advance India’s prosperity.
  • Delhi does not have to discard its “One-China policy” to recognise that Taiwan is once again becoming the lightning rod in US-China tensions.

Consider the question “India needs to explore the opportunities in relationship with Taiwan even as it pursues and sticks to its One China policy. Comment.

Conclusion

As Taiwan becomes the world’s most dangerous flashpoint, the geopolitical consequences for Asia are real. Although Delhi has embraced the Indo-Pacific maritime construct, it is yet to come to terms with Taiwan’s critical role in shaping the strategic future of Asia’s waters.

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Finance Commission – Issues related to devolution of resources

Fifteenth Finance Commission has increased proportion of grants conditional on reforms

Note4Students

From UPSC perspective, the following things are important :

Prelims level: State Finance Commission

Mains level: Paper 2- Conditional grants to incentivise the states for reforms

The article highlights the crucial recommendations made by the 15th Finance Commission and also explains the importance of conditions for grants from the Centre to push the state for reforms.

Crucial recommendations by 15th Finance Commission

  • The Fifteenth Finance Commission’s report for the period 2021-22 to 2025-26 outlines some crucial recommendations for state governments.
  • These recommendations cover tax devolution, grants from the Centre, and the guidelines for the borrowings that they are permitted to incur over the medium-term.
  • The commission has recommended that 41 per cent of the government’s divisible pool of taxes be transferred to state governments.

Horizontal devolution formula

  • The horizontal devolution formula specifies each state’s share in the overall pie.
  • The 15th FC was required to use the states’ population as per the 2011 Census — a highly contentious change.
  • It has also introduced a demographic performance criterion.
  • Additionally, it has also introduced a new criterion –tax effort.
  • Tax effort is measured by the ratio of the three-year average of per-capita own tax revenues and per-capita gross state domestic product (GSDP).
  • The net result of the change in criteria is that the share of 10 states in the divisible pool has declined.
  • Karnataka is the biggest loser, while Maharashtra is the biggest gainer.

Grants from the Centre conditioned on reforms in states

  • Another major set of the commission’s recommendations pertain to grants from the Centre.
  • In a major shift, the 15th FC has sharply increased the proportion of grants whose receipt is conditional on specified reforms being undertaken.
  • 57 per cent of the 15th FC-recommended grants accepted so far by the GoI are conditional, relative to just 17 per cent for the 14th FC (including J&K).

What are the conditions

1) Setting up of State Finance Commission (SFC) and applicability of SFC’s recommendations for 5 years only

  • Constitution requires state governments to set up State Finance Commissions (SFC).
  • The 15th FC has asserted that the mandate of any given SFC is intended to be applicable only for five years.
  • It revealed that only 15 states have set up their fifth or sixth SFCs, whereas several states have not moved beyond their second or third SFC.
  • Accordingly, a staggering 84 per cent of the Rs 4.4 trillion grants for local bodies recommended by the 15th FC are conditional on the states setting up SFCs for the coming five-year period, and acting on their recommendations by March 2024.

2) Availability of online accounts

  • Another entry-level condition for availing grants by rural and urban local bodies pertains to the timely availability of their accounts online from 2021-22 onwards.

3) Notiflying floor rate for property tax

  • For the receipt of grants by the urban bodies, states are required to notify a floor rate for property tax by 2021-22, and demonstrate consistent year-wise improvement from 2022-23 onwards.
  • This will complement the conditions set previously by SEBI for ULBs to become eligible to raise municipal bonds.

Changes in limit on net borrowings of state governments

  • The commission has recommended that the normal limit for net borrowings of state governments be fixed at 4 per cent of GSDP in 2021-22.
  • This will ease to 3.5 per cent by 2022-23, thereafter reverting to the erstwhile 3 per cent limit till 2025-26.
  • The additional borrowing space of 0.5 per cent of GSDP for states is conditional on the completion of power sector reforms.

Prospect of huge gaps in states’ revenue in the future

  • The states’ fiscal arithmetic will alter in 2022-23 with the GST compensation set to cease at the end of June 2022 as things stand today.
  • The ensuing drop in grants, combined with the tapering of the front-loaded revenue deficit grants is likely to leave a big gap in some states’ revenues.

Consider the question “What are the conditions laid down by the 15th Finance Commission on the states for the central grants? How these conditions could benefit the states?”

Conclusion

The question is whether this revenue gaps will force the states to move on both the power sector reforms, which have proven challenging in the past, and the municipal reforms, so that their resource availability may be enhanced.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Carbon Watch: India’s first app to assess one’s carbon footprint

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Carbon footprints, Ecological footprints

Mains level: Not Much

Chandigarh became the first state or UT in India to launch Carbon Watch, a mobile application to assess the carbon footprint of an individual.

Carbon Footprint

  • A carbon footprint is the total greenhouse gas (GHG) emissions caused by an individual, event, organization, service, or product, expressed as carbon dioxide equivalent.
  • It corresponds to the whole amount of greenhouse gases (GHG) produced to, directly and indirectly; support a person’s lifestyle and activities.
  • Carbon footprints are usually measured in equivalent tons of CO2, during the period of a year, and they can be associated with an individual, an organization, a product or an event, among others.
  • The GHGs whose sum results in a carbon footprint can come from the production and consumption of fossil fuels, food, manufactured goods, materials, roads or transportation.

Note: An ecological footprint, as explained earlier compares the total resources people consume with the land and water area that is needed to replace those resources. A carbon footprint also deals with resource usage but focuses strictly on the greenhouse gases released due to burning of fossil fuels.

How does the app Carbon Watch work?

  • As a person downloads the application, they will need to fill details in four parts — Water, Energy, Waste Generation and Transport (Vehicular movement).
  • In the category of Water, the person will be required to inform about the consumption of water.
  • In the Energy category, the details regarding the electricity units consumed every month at the house, monthly bill etc and usage of solar energy will have to be furnished.
  • In the Waste category, the individual will need to inform about the waste generated on their part and their family.
  • In the transport section, the individual will have to inform about the mode of transport used by four-wheeler, two-wheeler or bicycle.

Try this PYQ:

As a result of their annual survey, the National Geographic Society and an international polling firm GlobeScan gave India top rank in Greendex 2009 score. What is this score?

(a) It is a measure of efforts made by different countries in adopting technologies for reducing the carbon footprint

(b) It is a measure of environmentally sustainable consumer behavior in different countries

(c) It is an assessment of programs/schemes undertaken by different countries for improving the conservation of natural resources

(d) It is an index showing the volume of carbon credits sold by different countries

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North-East India – Security and Developmental Issues

Demand for Greater Tipraland

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tipraland

Mains level: Demand for separate states

Tripura royal scion Pradyot Kishore Manikya has recently announced his political demand for a new state called ‘Greater Tipraland’.

Try this:

Q.New-age ethnic politics in North East is driving demands for separate statehood movements in India. Discuss.

What is Greater Tipraland?

  • ‘Greater Tipraland’ is essentially an extension of the ruling tribal partner Indigenous Peoples Front of Tripura – IPFT’s demand of Tipraland, which sought a separate state for tribals of Tripura.
  • The new demand seeks to include every tribal person living in an indigenous area or village outside the Tripura Tribal Areas Autonomous District Council (TTAADC) under the proposed model.
  • However, the idea doesn’t restrict to simply the Tripura tribal council areas but seeks to include ‘Tiprasa’ of Tripuris spread across different states of India like Assam, Mizoram etc. as well.
  • It seeks to include even those living in Bandarban, Chittagong, Khagrachari and other bordering areas of neighbouring Bangladesh.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

What are Non-Alcoholic Fatty Liver Diseases (NAFLD)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NAFLD

Mains level: Health threats posed by Fats

The Union Govt has integrated the Non-alcoholic fatty liver disease (NAFLD) in the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke.

Try this MCQ:

Q.A Company marketing food products advertises that its items do not contain trans-fats. What does this campaign signify to the customers?

  1. The food products are not made out of hydrogenated oils.
  2. The food products are not made out of animal fats/oils.
  3. The oils used are not likely to damage the cardiovascular health of the consumers.

Which of the statements given above is/are correct?

(a) Only 1

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

NAFLD

  • NAFLD is the abnormal accumulation of fat in the liver in the absence of secondary causes of fatty liver, such as harmful alcohol use, viral hepatitis, or medications.
  • According to doctors, it is a serious health concern as it encompasses a spectrum of liver abnormalities.
  • It can cause non-alcoholic fatty liver (NAFL, simple fatty liver disease) to more advanced ones like non-alcoholic steatohepatitis (NASH), cirrhosis and even liver cancer.

Why such a move?

  • NAFLD is emerging as an important cause of liver disease in India.
  • Epidemiological studies suggest the prevalence of NAFLD is around 9% to 32% of the general population in India with a higher prevalence in those with overweight or obesity and those with diabetes or prediabetes.
  • Researchers have found NAFLD in 40% to 80 % of people who have type 2 diabetes and in 30% to 90% of people who are obese.
  • Studies also suggest that people with NAFLD have a greater chance of developing cardiovascular disease.
  • Cardiovascular disease is the most common cause of death in NAFLD.

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Agmark, Hallmark, ISI, BIS, BEE and Other Ratings

[pib] One Nation One Standard Mission

Note4Students

From UPSC perspective, the following things are important :

Prelims level: One Nation One Standard, BIS

Mains level: One Nation One Standard

It’s time to embark on Mission “One Nation One Standard” and make India the leader in setting global benchmarks in setting standards, highlighted the Food and Consumer Affairs Minister.

One Nation One Standard

  • The purpose of setting standards and enforcing them is not to bring back “inspection raj” but to ensure that quality products are made available to consumers.
  • The Bureau of Indian Standards (BIS), the only national body that frames standards, has come out with more than 20,000 standards for various products and services so far.
  • Besides this, there are about 50-odd agencies that have framed about 400 standards in the country.
  • There are multiple standards in the country for a single product/service. The new mission is to converge such standards with the BIS.

Main objectives:

  • No one should feel the need to go abroad to get the quality certification.
  • Lab testing in India should be of world standards. Modern equipment and the latest technologies would be used there.

Why such a move?

  • Having uniform national standards will help in making it mandatory for more products.
  • The government proposes to set Indian standards in line with the global benchmarks, just like other countries enforce their standards on imported products.
  • The Centre, through this move, wants foreign goods coming into India to comply with Indian standards.

Try this PYQ:

Consider the following statements:

  1. The Standard Mark of the Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
  2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2


Back2Basics: Bureau of Indian Standards (BIS)

  • BIS is the National Standards Body of India working under the aegis of the Ministry of Consumer Affairs, Food & Public Distribution.
  • It is established by the Bureau of Indian Standards Act, 1986 which came into effect on 23 December 1986.
  • The organisation was formerly the Indian Standards Institution (ISI), set up under the Resolution of the Department of Industries and Supplies in September 1946.
  • The ISI was registered under the Societies Registration Act, 1860.
  • A new Bureau of Indian standard (BIS) Act 2016 has been brought into force with effect from 12 October 2017.
  • The Act establishes the Bureau of Indian Standards (BIS) as the National Standards Body of India.

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Microfinance Story of India

[pib] SFURTI Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SFURTI Scheme

Mains level: Reviving MSME Sector

Union Minister for MSME has inaugurated 50 artisan-based SFURTI clusters, spread over 18 States.

SFURTI is an off-track scheme compared to other HRD schemes with Hindi acronyms. Similar is the SPARSH scheme for philately.

SFURTI Scheme

  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is an initiative by the Ministry of MSME to promote Cluster development.
  • Khadi and Village Industries Commission (KVIC) is the Nodal Agency for the promotion of Cluster development for Khadi.
  • Under the Scheme, the MSME Ministry supports various interventions including the setting up of infrastructure through Common Facility Centers (CFCs), procurement of new machinery, design intervention, improved packaging and marketing etc.

Types of clusters

  • SFURTI clusters are of two types i.e., Regular Cluster (500 artisans) with Government assistance of up to Rs.2.5 crore and Major Cluster (more than 500 artisans) with Government assistance up to Rs.5 crore.
  • The scheme focuses on strengthening the cluster governance systems with the active participation of the stakeholders so that they are able to gauge the emerging challenges and opportunities and respond to them.

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