Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Challenges facing wheat economy in India
Context
The ban on the export of wheat was not unexpected. The rather ambivalent approach to agriculture comes out clearly with this move.
Understanding how this ban has come about
- We are not comfortable with market forces operating in agriculture.
- Nor are we quite sure whether we want the farmer to get a better price or the consumer to pay less.
- Governments spend a lot of money in the form of subsidies to ensure farmers are enthused to produce more wheat.
- The Centre keeps increasing the MSP for this purpose and states often pay a bonus for procurement.
- There are political reasons too as the farmer lobby needs to be placated.
- There are political reasons too as the farmer lobby needs to be placated.
- We have been taking credit for the production of wheat and every year we set a new record.
- This year, the Ministry announced that wheat production will touch a record of 111 million tonnes, which has recently been revised downwards.
- With the war, conditions have changed. Russia and Ukraine are large producers of wheat and their supply to world markets has been cut off due to sanctions and supply chain disruptions.
- With supplies interrupted, there is an opportunity for other surplus nations to step in.
- But the disruption has caused world prices to rise significantly.
Opportunity for India
- The World Bank data indicates that the price of US (soft red winter) wheat has gone up from $328/tonne in December to $672/tonne while US (hard red winter) wheat is up from $377 to $496/tonne.
- Countries that produce abundant wheat now have a chance to leverage this opportunity to export.
- However, in case of India it does appear that production will be lower than expected.
- Low wheat stock: The government has also not been able to procure wheat as farmers are no longer selling at MSP (which is at Rs 2,015/quintal) as they are getting higher prices in mandis.
- As of May 10, procurement was just 18 million tonnes against 43 million tonnes last year.
- This is a significant fall.
- But stocks with the Centre and other state agencies are 30.3 million tonnes, way above the buffer norms of 27.6 million tonnes.
- The ban on wheat exports is because of this.
Two constraints on the wheat economy
- In 2007 and again in 2021, the government banned futures trading in wheat on grounds that it led to speculative pressure on prices even though the quantity traded and the open interest were minuscule.
- At that time, it was a decline in expected output which triggered this action.
- It does look like the wheat economy will continue to operate within two constraints that have become barriers to commercialisation.
- MSP and government procurement: The first is MSP and government procurement, which feeds into the public distribution system.
- Arhatiya system: The second is the arhatiya system of trading where middlemen have come in the way of any reform.
Suggestions
- Abolish MSP and procurement system: The MSP and procurement system needs to be dismantled.
- Cash transfers: As the government has successfully expanded both the Aadhaar and Jan Dhan programmes, there should be simple cash transfers to beneficiaries.
- Buffer stocks can be held to ease distress during a crisis, but government involvement should stop there.
- Procuring unlimited quantities of wheat and keeping huge stocks has distorted the wheat matrix.
- The mandi system too needs to be revisited and alternatives have to be made available so that farmers can choose the point of sale.
Conclusion
We have been talking about being a part of global supply chains to augment value addition and accelerate growth. But when it comes to agriculture it is a blow-hot blow-cold approach. This not only affects our credibility but also sends confusing signals to producers as to what is the best way out for them.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indo-Pacific Economic framework
Mains level: Paper 2- Opportunity for Quad plus
Context
On May 23, before the Quad leaders’ summit in Tokyo, the United States launched the Indo-Pacific Economic Framework (IPEF).
Significance IPEF
- The Indo-Pacific Economic Framework (IPEF) will consist of a diverse group of 12 countries initially — Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
- The IPEF — which covers fair trade, supply chain resilience, infrastructure, clean energy, and decarbonisation, among others — is likely to complement the other Indo-Pacific projects like the Supply Chain Resilience Initiative (SCRI) that also seeks to build resilient and secure trade linkages by reducing dependence on China.
- Decoupling from Chinese over-dependence: The US-led economic engagement is a salient attempt to allow countries to decouple from Chinese over-dependence in order to ultimately strengthen the existing free and open rules-based global order.
- Extension of plus grouping: The launch of IPEF signifies the essence of the Quad and its extension as a “plus” grouping.
- It brings together seven critical countries of the Association of Southeast Asian Nations (ASEAN), all Quad states, and dialogue partners, including South Korea, solidifying a case for the “plus” characterisation of the Quad process.
- Thus, it is an encouraging sign that the Quad countries are investing their strategic orientation in this regard.
- Importantly, both the IPEF launch, and the Tokyo summit dispel any remaining misgivings about the Quad disintegrating and certify that it is a cohesive unit where it matters.
- It would potentially represent an amalgamation of the eastern and western “like-minded” countries.
- The expanded grouping and the related Quad initiatives will build a comprehensive and integrated approach to combating shared challenges arising out of Chinese aggression.
- A hallmark of Biden’s latest Asia visit has been South Korea’s embrace of the Indo-Pacific framework.
- This is a long-awaited turn that could potentially lead to South Korea participating in a more meaningful manner in the Quad in the near future.
Importance of Taiwan
- Taiwan is a major economy in the Indo-Pacific region (as also the US’s eighth-largest trading partner in 2021 and a critical partner in diversifying the US supply chains), which is already engaged in the US-Taiwan Economic Prosperity Partnership Dialogue that includes many of the issues proposed in the IPEF.
- The inclusion of Taiwan, which already has a critical role in the global semi-conductor supply chain network, in the SCRI and the IPEF as well as, by extension, in the Quad format, in some manner would be a welcome addition.
- Geopolitical statement against coercive tactics: Importantly, Taiwan’s inclusion would also be a geopolitical statement against coercion tactics by international actors.
Inclusivity characteristics based on a commitment to the existing international order
- In its current abstract framework, the plus framework includes a wide array of states (which also comprise the IPEF) — developing and developed economies as well as middle and major powers that are committed to maintaining an inclusive, rules-based and liberal institutional order.
- The inclusivity angle is suspect as the grouping is essentially what China calls a US-led “anti-China” tool.
- Therefore, what interested states must envision is a broad, all-embracing, and comprehensive framework that can stand as a pillar for regional security and stability, multilateralism, and defence of global institutionalism and the status quo.
Conclusion
States are showing their willingness, and now it is incumbent on the Quad states to allow for the creation of a “corridor of communication” that ultimately leads to a “continental connect” to strengthen a rules-based order.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: QUAD
Mains level: Read the attached story
Why was it formed?
- While not stated explicitly by the leaders, a major basis for the grouping is to check China’s growing influence in the region.
- After the Indian Ocean tsunami in 2004 wreaked havoc in the region now called the Indo-Pacific, India stepped up its rescue efforts.
- India provided assistance to its maritime neighbours: Sri Lanka, the Maldives and Indonesia.
- Soon, the disaster relief effort was joined by three other naval powers — the U.S., Australia and Japan.
- Then US President George W. Bush announced that the four countries would set up an international coalition to coordinate the massive effort.
- While the charge of the rescue operations was handed over to the United Nations shortly after, it led to the birth of a new framework: the Quadrilateral or Quad.
Development of present day QUAD
- Then Japanese PM Shinzo Abe had been promoting the idea of an “arc of prosperity and freedom”.
- This brought the Quad countries closer together, further developed the concept and discussed it with then PM Manmohan Singh during a summit in December 2006.
- The 2007 Indo-U.S. Malabar naval exercises also saw the partial involvement of Japan, Australia and Singapore.
- The exercises and coordination were seen by China as an attempt to encircle it, which termed the grouping as trying to build “an Asian NATO”.
Descent and revival in its formation
- The Quad lost momentum post the 2007 meeting as the effort “dissipated amidst member leadership transitions.
- The grouping was only revived an entire decade later in 2017, at a time when all four countries had revised their assessment of the China challenge; and India had witnessed the Doklam standoff.
- Leaders of all four countries met in the Philippines for the ‘India-Australia-Japan-U.S.’ dialogue, not referred to as a Quad dialogue to avoid the notion of a “gang-up”.
Basis: Indo-Pacific
- Even at this point, a set of objectives, areas of cooperation, and even the definition of Indo-Pacific were not fixed among Quad members.
- It was in March 2021 that Mr. Biden, Mr. Modi, Australia’s outgoing PM Scott Morrison, and then Japanese PM Yoshihide Suga met virtually, for the first time as an official Quad summit.
- It released a set of objectives for the grouping in a joint statement called the ‘The Spirit of the Quad’.
What were the objectives of the grouping?
- Coming together to foster a free and open Indo-Pacific formed the bedrock of cooperation.
- Now it commits to promoting the free, open, rules-based order, rooted in international law and undaunted by coercion, to bolster security and prosperity in the Indo-Pacific and beyond.
- Emphasis was laid on “rule of law, territorial integrity, freedom of navigation and overflight, peaceful resolution of disputes, and democratic values” in the region.
Various initiatives of QUAD
- Quad leaders launched the Quad Vaccine Initiative (QVI) with the aim of manufacturing and distributing at least a billion COVID-19 vaccines for the Asia region by the end of 2022.
- As for emerging technologies, the four countries aimed to work on the development and diversification of 5G telecommunications.
- They aim for creation of supply chains for critical minerals and technologies for making semiconductors used in smartphones, another area where China is a leader.
- Quad nations had also agreed to build joint connectivity projects and transparent infrastructure funding for countries in the region.
- The Quad also created a working group for combating climate change which would oversee efforts to foster green shipping by decarbonising maritime supply chains and promoting the use of clean hydrogen.
What are the future plans of the Quad?
- The Leaders will review the progress of Quad initiatives and Working Groups, identify new areas of cooperation and provide strategic guidance and vision for future collaboration.
- The Quad summit is expected to discuss the Russian war in Ukraine, and the impact of three months of Western sanctions.
- US also unveiled the ‘Indo-Pacific Economic Framework’ (IPEF) which is a programme to bind countries in the region more closely through common standards.
- Quad members also launched a maritime monitoring plan to curb illegal fishing in the Indo-Pacific.
Various challenges
- How to deal with China thus remains the central question for Quad. Each Quad member views the Chinese threat differently.
- For Australia too, trade was the biggest issue until the recent establishment of a Chinese military base in the Solomon Islands brought a new dimension.
- Japan and India are closest to China, and both face belligerent Chinese claims to territory.
- The security build-up of QUAD is also yet to materialize.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Qutub Minar
Mains level: Not Much
The Qutub Minar complex is not a place of worship and its character cannot be changed now, the Archaeological Survey of India submitted in a Delhi Court while opposing a plea challenging the dismissal of a civil suit seeking “restoration” of temples on the premises.
What is the case?
- The original suit claimed that 27 temples were demolished to build the Quwwat-ul-Islam mosque at the Qutub Minar complex.
- This pleas was dismissed last year under the provisions of Places of Worship (Special Provisions) Act, 1991.
- The Additional District Judge (ADJ) has now reserved the order.
- The petitioner said that the dismissal of the original suit based on the 1991 Act was wrong.
- The Qutub Minar complex comes under the purview of the Ancient Monuments and Archaeological Sites and Remains (AMASR) Act of 1958.
Why in news now?
- The ASI now submitted that the Qutub Minar complex was not a place of worship when it was first notified as a protected monument in 1914.
- The ASI, explained that the character of a monument is decided on the date when it comes under protection.
About Qutub Minar
- The Qutub Minar is a minaret and “victory tower” that forms part of the Qutb complex, which lies at the site of Delhi’s oldest fortified city, Lal Kot, founded by the Tomar Rajputs.
- It is a UNESCO World Heritage Site in the Mehrauli area of South Delhi.
- It can be compared to the 62-metre all-brick Minaret of Jam in Afghanistan, of c. 1190, which was constructed a decade or so before the probable start of the Delhi tower.
- The surfaces of both are elaborately decorated with inscriptions and geometric patterns.
- The Qutb Minar has a shaft that is fluted with “superb stalactite bracketing under the balconies” at the top of each stage.
Its construction
- The Qutb Minar was built over the ruins of the Lal Kot, the citadel of Dhillika.
- Qutub Minar was begun after the Quwwat-ul-Islam Mosque, which was started around 1192 by Qutb-ud-din Aibak, first ruler of the Delhi Sultanate.
- It is usually thought that the tower is named for Qutb-ud-din Aibak, who began it.
- It is also possible that it is named after Khwaja Qutbuddin Bakhtiar Kaki a 13th-century sufi saint, because Shamsuddin Iltutmish was a devotee of his.
- Quwwat-ul-Islam Mosque, to the north-east of the Minar was built by Qutub-ud-Din Aibak in A.D. 1198.
- It consists of a rectangular courtyard enclosed by cloisters, erected with the carved columns and architectural members of 27 Jain and Hindu temples, which were demolished by Qutub-ud-Din.
- This is recorded in his inscription on the main eastern entrance.
Back2Basics:
What is the Places of Worship Act?
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From UPSC perspective, the following things are important :
Prelims level: Prithviraj Chauhan
Mains level: NA
There is controversy around a new film where some communities of Rajasthan are laying claim over the 12th century emperor Prithviraj Chauhan.
Prithviraj Chauhan
- Prithviraj Chauhan (1177–1192 CE) popularly known as a king from the Chauhan (Chahamana) dynasty who ruled the territory of Sapadalaksha, with his capital at Ajmer in present-day Rajasthan.
- Ascending the throne as a minor in 1177 CE, Prithviraj inherited a kingdom which stretched from Thanesar in the north to Jahazpur (Mewar) in the south.
His legend
- He aimed to expand by military actions against neighbouring kingdoms, most notably defeating the Chandela’s.
- Prithviraj unified several Rajput clans and defeated the Ghurid army led by Muhammad Ghori near Taraori in 1191 AD.
- However, in 1192 CE, Ghori returned with an army of Turkish mounted archers and defeated the Rajput army on the same battlefield.
- Prithviraj fled the battlefield, but was captured near Sirsa and executed.
- His defeat at Tarain is seen as a landmark event in the Islamic conquest of India, and has been described in several semi-legendary accounts, most notably the Prithviraj Raso.
Prithviraj in literary works
- The image of Prithviraj as a fearless and skilled warrior that is now etched in the folk imagination can be traced back to his depiction in ‘Prithviraj Raso’.
- This was a poem in Brajbhasha attributed to Chand Bardai, which is thought to have been composed in the 16th century.
- James Mill’s ‘The History of British India’ (1817) categorized Indian history into the Hindu, Muhammadan and British periods.
- In this formulation, Prithviraj Chauhan would be the last ruler of ‘Hindu’ India.
Why is he being revived?
- To a vocal section of the Hindu right, Prithviraj Chauhan appears as “the last Hindu emperor” of India who made a valiant attempt to stop the radical invaders.
- In the popular imagination, he is the heroic figure who symbolises the exalted ideals of patriotism and national pride.
- However the historical evidence demonstrates rather different ways in which Prithviraj has been seen over the ages.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FDI, FPI
Mains level: Read the attached story
The foreign direct investment (FDI) in the financial year 2021-22 has touched a “highest-ever” figure of $83.57 billion.
Get aware with the recently updated FDI norms. Key facts mentioned in this newscard can make a direct statement based MCQ in the prelims.
Ex. FDI source in decreasing order: Singapore – Mauritius – Netherland – Ceyman Islands – Japan – France
What is Foreign Direct Investment (FDI)?
- An FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
- It is thus distinguished from a foreign portfolio investment by a notion of direct control.
- FDI may be made either “inorganically” by buying a company in the target country or “organically” by expanding the operations of an existing business in that country.
- Broadly, FDI includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”.
- In a narrow sense, it refers just to building a new facility, and lasting management interest.
FDI in India
- Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then FM Manmohan Singh.
- There are two routes by which India gets FDI.
1) Automatic route: By this route, FDI is allowed without prior approval by Government or RBI.
2) Government route: Prior approval by the government is needed via this route. The application needs to be made through Foreign Investment Facilitation Portal, which will facilitate the single-window clearance of FDI application under Approval Route.
- India imposes a cap on equity holding by foreign investors in various sectors, current FDI in aviation and insurance sectors is limited to a maximum of 49%.
- In 2015 India overtook China and the US as the top destination for the Foreign Direct Investment.
Features of FDI
- Any investment from an individual or firm that is located in a foreign country into a country is FDI.
- Generally, FDI is when a foreign entity acquires ownership or controlling stake in the shares of a company in one country, or establishes businesses there.
- It is different from foreign portfolio investment where the foreign entity merely buys equity shares of a company.
- In FDI, the foreign entity has a say in the day-to-day operations of the company.
- FDI is not just the inflow of money, but also the inflow of technology, knowledge, skills and expertise.
- It is a major source of non-debt financial resources for the economic development of a country.
Significance of rising FDI
- This is a testament of India’s status among global investors.
Recent amendments in 2020
- The govt. has amended para 3.1.1 of extant FDI policy as contained in Consolidated FDI Policy, 2017.
- In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership, such subsequent change in beneficial ownership will also require Government approval.
The present position and revised position in the matters will be as under:
Present Position
- A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited.
- However, a citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route.
- Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.
Revised Position
- A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited.
[spot the difference]
- However, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
- Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.
In response to China
- China accused that India’s recently adopted policy goes against the principles of the World Trade Organisation (WTO).
- It tends to violate WTO’s principle of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GEAC, SDN
Mains level: Read the attached story
The Department of Biotechnology (DBT) has issued guidelines easing norms for research into genetically modified (GM) crops and circumventing challenges of using foreign genes to change crops profile.
Guidelines for Safety Assessment of Genome Edited Plants, 2022: Key Highlights
- It exempt researchers who use gene-editing technology to modify the genome of the plant from seeking approvals from the Genetic Engineering Appraisal Committee (GEAC).
- The environment ministry in March 2022 exempted SDN 1 and SDN 2 genomes from Rules 7-11 of the Environment Protection Act.
- Conventional breeding technique takes 8- 10 years for development of new crop varieties; genome-editing can do this faster.
- The Environment Ministry too has sanctioned this exemption.
What are the SDNs?
The genome edited plants derived from the use of genome editing techniques employing site- directed nucleases (SDNs) such ZFNs, TALENs, CRISPR and other nucleases with similar functions are generally classified under three categories as
- Site-Directed Nuclease (SDN)-1, a site-directed mutagenesis without using a DNA sequence template;
- SDN-2, a site-directed mutagenesis using a DNA sequence template; and
- SDN-3, site-directed insertion of gene/large DNA sequence using a DNA sequence template.
What are GM crops?
- The GM plants involve transgenic technology or introducing a gene from a different species into a plant, for instance BT-cotton, where a gene from soil bacterium is used to protect a plant from pest attack.
- The worry around this method is that these genes may spread to neighboring plants, where such effects are not intended and so their applications have been controversial.
- Genome editing involves the use of technologies that allow genetic material to be added, removed, or altered at particular locations in the genome. Several approaches to genome editing have been developed.
- A well-known one is called CRISPR-Cas9, which is short for clustered regularly interspaced short palindromic repeats and CRISPR-associated protein 9.
Try this PYQ:
Q.The Genetic Engineering Appraisal Committee is constituted under the:
(a) Food Safety and Standards Act, 2006
(b) Geographical Indications of Goods (Registration and Protection) Act, 1999
(c) Environment (Protection) Act, 1986
(d) Wildlife (Protection) Act, 1972
Post your answers here.
About Genetic Engineering Appraisal Committee (GEAC)
- The Genetic Engineering Appraisal Committee (GEAC) is a statutory body conotified under the Environment (Protection) Act, 1986.
- It was formed as the Genetic Engineering Approval Committee and was renamed to its current name in 2010.
- It functions under the Ministry of Environment, Forests & Climate Change.
- The body regulates the use, manufacture, storage, import and export of hazardous microorganisms or genetically-engineered organisms and cells in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pravaig Field Pack
Mains level: Not Much
A Bengaluru-based venture has produced a rugged tactical battery that it is now planning to sell to the North Atlantic Treaty Organisation (NATO) forces in Europe.
Pravaig Field Pack
- It is a heavy-duty power bank that is portable and weighs 14 kilograms.
- It is of great utility to the digitally connected modern military and Special Forces personnel who have to operate in high-risk zones while using gadgets that require constant power back-up.
- These batteries are designed, engineered and made in India.
- The field pack can be used to charge a MacBook 60 times.
Significance of Pravaig
- This supply marks a major shift in the defense landscape of India — a tipping point in the reversal of India’s high technology defense industry, from users to developers, from importers to exporters.
- The field pack can be used to energize a military person’s field duties and it can be used to deploy remote sensors.
- A powerful tactical battery can be used even to operate larger military equipment such as drones and it can even help coordinate tactical operations which involve multiple weapons systems.
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