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  • Road and Highway Safety – National Road Safety Policy, Good Samaritans, etc.

    Places in news: Baralacha Pass

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    For the first time ever, the Border Roads Organisation (BRO) has started work on reopening the crucial Baralacha Pass in Himachal Pradesh much before schedule to restore connectivity to Leh in Ladakh.

    Note all the Himalayan passes from their N-S sequences.

    Baralacha Pass

    • Bara-lacha la also known as Bara-lacha Pass is a high mountain pass in the Zanskar range connecting the Lahaul district in Himachal Pradesh to Leh district in Ladakh.
    • It is situated along the Leh–Manali Highway.
    • The Bhaga river, a tributary of the Chenab river, originates from Surya Taal lake, which is situated a few kilometres from the pass towards Manali.
    • The native name of Chenab “Chandrabhaga” represents the union of Chandra and Bhaga rivers downstream.
    • The pass also acts as a water-divide between the Bhaga River and the Yunan River.

    Why is this pass so important?

    • The BRO had kept crucial passes open for a longer duration to enable the Army to undertake advanced winter stocking for the thousands of additional troops deployed in Ladakh.
    • The team has traversed a total distance of 20 km in super high-altitude conditions scrupulously crossing the Baralacha La in the Zanskar range on foot amidst sub-zero freezing conditions.
    • Frequent avalanches and slides with 15 to 20 feet of snow accumulation.

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  • RBI Notifications

    What India needs for population stabilisation

    op-ed snap | Governance | Mains Paper 1: Population & Associated Issues

    Achieving replacement levels of fertility

    • The National Population Policy 2000 affirmed a commitment to achieve replacement levels of fertility (total fertility rate of 2.1) by 2010.
    • Ten states — Karnataka, Punjab, Gujarat, Assam, Telangana, Andhra Pradesh, West Bengal, Maharashtra, Tamil Nadu and Kerala — and Jammu and Kashmir, have achieved this goal.
    • This fertility decline over half of India has cut across all sections of society — the privileged and the poor, those educated or not, and the high and low caste.
    • The National Family Health Survey-4 has shown how TFR has reduced even among illiterate women from all religions in the southern states.

    Growing gap between North-South

    • The difference between the progressive South and the Central- North is becoming disproportionately skewed.
    • UP and Bihar are 23 per cent of India’s population and are projected to grow by over 12 per cent and 20 per cent in the next 15 years.
    • Their high TFR pervades all religious groups.
    • Action to prevent unwanted pregnancies particularly in these two Hindi belt states is urgently required.
    • For decades UP has had a dedicated agency — SIFPSA (State Innovations in Family Planning Services Agency). But its website gives dated information.
    • Women in rural UP are still giving birth to four or more children.
    • In some districts, the contraceptive prevalence rate is less than 10 per cent.
    • In many districts neither Hindus nor Muslims use modern family planning methods.
    • In such a scenario, demographics will eclipse economic growth and destroy the gains from a young populace.
    • UP’s over-reliance on traditional methods of contraception needs to be swiftly replaced with reliable and easy alternatives.
    • Bihar has the highest fertility rate in the country and also the highest outmigration.

    Which method  should be used

    • While national and state policies emphasise male vasectomy, politicians never champion its adoption.
    • No other country in the world uses female sterilisation as excessively as India.
    • Indonesia and Bangladesh introduced injectables right from the late 1980s but India only did so in 2016.
    • Executed properly, one jab renders protection from pregnancy for three months.
    • This method needs greater impetus given the helplessness of women who carry the burden of unwanted pregnancies.

    Way forward

    • Three things are needed:
    • 1) Incentivise later marriages and child births.
    • 2) Make contraception easy for women.
    • 3) Promote women’s labour force participation.
    •  Some other disturbing nationwide trends must also be counteracted without delay because stabilisation isn’t only about controlling population growth.
    • A balanced sex ratio is essential to secure social cohesion.
    • The inheritance law favouring women’s rights to ancestral property is far from being implemented.
    • And then there is ageing. Paradoxically, it is the Southern states that will face problems in future.
    • Having largely redeemed their demographic dividend, the cohort of the elderly will start outstripping the working age population.
    • The theoretical possibility that younger people from the Central-Northern states may fill the growing gap in services will need strong political support.
    • The freeze on the state-wise allocation of seats in Parliament until 2026 was extended through the Constitutional (84th Amendment) Act, 2002, to serve “as a motivational measure to pursue population stabilisation”.
    • This goal has not been achieved.
    • In the absence of further extension, it will be politically destabilising.

    Consider the question “India’s efforts at populations stabilisation still remains work in progress, as the Northern states fail to achieve the targets. Suggest the ways to deal with the issue.”

    Conclusion

    The population momentum, if managed properly in the Hindi belt, will remain India’s biggest asset until 2055. By 2040, India will be the undisputed king of human capital.

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  • Foreign Policy Watch: India-United States

    The Quad’s importance to India’s strategic autonomy

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    India is a member of both the Quad and the BRICS. Is not it the contradiction? The article answers this question and maps the transformation of India’s relation with the U.S. over the years.

    Is India’s participation in BRICS and Quad contradictory?

    • Global Times, the Chinese newspaper last week speculating on the implications of the historic Quad summit for the BRICS.
    • In calling the Quad a “negative asset” for the BRICS the Global Times was highlighting what it sees as a contradiction in India’s participation in both the forums.
    • The paper argues that India has worsened “India-China and India-Russia relations” and halted progress “in the development of BRICS and SCO”.
    • Global Times warns that if India continues to get closer to Washington, India “will eventually lose its strategic autonomy”.

    Understanding India’s strategic autonomy

    • “Strategic autonomy” is the framework that guided Delhi’s international relations since the Cold War.
    • In the early 1990s, strategic autonomy was about creating space for India against the overweening American power.
    • Why the space was needed? It was mainly because of the U.S. stance on two important aspects: Kashmir issue and nuclear program.
    • President Bill Clinton had questioned the legitimacy of Jammu and Kashmir’s accession to India and declared the US’s intent to resolve Delhi’s Kashmir dispute with Pakistan.
    • Washington insisted that rolling back India’s nuclear and missile programmes was a major objective of US foreign policy.
    • All that changed over the last three decades.

    8 elements of  transformation of India’s relations with the U.S and China

    • A rising China has emerged as the biggest challenge to India and the US is increasingly an important part of the answer.
    • A few elements stand out.
    • First, China has become more assertive on the contested boundary, therefore, the support from the US and its Asian allies has been valuable.
    • Second, on the Kashmir question, China raises the issue at the UNSC while the US is helping India to block China’s moves.
    • Third, on cross-border terrorism, the US puts pressure on Pakistan and China protects Rawalpindi.
    • Fourth, the US has facilitated India’s integration with the global nuclear order while Beijing blocks Delhi’s membership of the Nuclear Suppliers Group.
    • Fifth, the US backs India’s permanent membership of the UNSC, China does not.
    • Sixth, India now sees the trade with China hollowing out India’s manufacturing capability.
    • Its objective on diversifying its economy away from China is shared by the US and the Quad partners.
    • Seventh, India opposes China’s Belt and Road Initiative as a project that undermines India’s territorial sovereignty and regional primacy.
    • India is working with Quad partners to offer alternatives to the BRI.
    • Finally, India sees China’s rising military profile in the subcontinent and the Indian Ocean as a problem and is working with Washington to redress the unfolding imbalance in India’s neighbourhood.

    India’s approach to BRICS and SCO

    • The BRICS was part of India’s strategy in the unipolar moment that dawned at the end of the Cold War.
    • India’s current enthusiasm for the Quad is about limiting the dangers of a unipolar Asia dominated by China.
    • But India will continue to attach some value — diplomatic if not strategic — to a forum like the BRICS.
    • After all, the BRICS forum provides a useful channel of communication between Delhi and Beijing at a very difficult moment in the evolution of their bilateral relations.
    • The BRICS is also about India’s enduring partnerships with Russia, Brazil, and South Africa.
    • India also values its ties with the Central Asian states in the SCO.
    • The BRICS could certainly become a productive forum someday — when Delhi and Beijing mitigate their multiple contentions.

    Consider the question “A rising China has emerged as the biggest challenge to India and the US is increasingly an important part of the answer. Examine the elements that support this underlying transformation of India’s relationship with the two countries.”

    Conclusion

    No amount of words in a BRICS declaration can hide the sharpening contradictions between India and China today. The absence of joint statements did not mask the growing strategic congruence among the Quad nations in recent years.

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

    A high growth plan for Indian agriculture

    | Agriculture | Mains Paper 3: Major Crops & Cropping Patterns

    The article deals with the issue discussed in the recently published book ‘Revitalising Indian Agriculture and Boosting Farmer Incomes’. It suggests strategies for six Indian states and underlies the importance of the diversified approach to different states.

    Why agriculture is central to Indian economy

    • Agriculture engages close to 42 per cent of the country’s workforce.
    • With its close interlinkage with poverty, it is best positioned to alleviate problems of malnutrition and hunger.
    • In addition, agriculture supplies inputs for other industries.
    • It is critical for triggering a multiplier effect in the economy, where a financially empowered farming community triggers a demand-led growth, particularly for manufactured products and services.
    • There is no doubt that the sector needs to grow not just for those employed in it but also for the economy as a whole.

    Growth strategy needs to take into account diversity across the states

    • The growth process of agriculture should not just more efficient, and inclusive of India’s small and marginal but is also sustainable — both financially and environmentally.
    • But then comes the question of the diversity in Indian states, where they differ as much on factors of production like land and water as they do on access to market opportunities.
    • They even differ in their vulnerabilities to climate and weather changes.
    • This begs the question, should the roadmap not be customised to the needs, vulnerabilities, and resource-base of each state?

    Strategies for six states

    • The recently published book “Revitalising Indian Agriculture and Boosting Farmer Incomes” proposes strategies for six Indian states: Punjab, Madhya Pradesh, Gujarat, Uttar Pradesh, Bihar and Odisha.
    • In the six states, three factors explained most of the agrarian growth.
    • One, access to infrastructure — mainly irrigation and roads.
    • Two, diversification to high value agricultural products like fruits, vegetables, and allied activities like dairy and poultry.
    • Three, price incentives or favourable terms of trade.
    • Bringing markets closer to farmers and increasing the efficiency of the value-chains emerged as an important factor that explained agricultural growth in Gujarat, Madhya Pradesh, Odisha, and Bihar.
    • By ensuring timely access to sufficient irrigation, states like Gujarat and Punjab could explain their high performances.
    • Role of uninterrupted quality power too emerged important in this.
    • Diversification of the agricultural basket of a state was found to strengthen a state’s agri-performance.

    Relation between growth rate and policy reforms

    • The requirement to undertake policy reforms, mainly related to marketing, emerged as a key driver and predictor of growth.
    • The NITI Aayog’s Agricultural Markets and Farmer Friendly Reforms Index — AMFFRI evaluates Indian states on the extent to which each of them undertook required agri-reforms.
    • A low AMFFRI rank implies the state is undertaking desired reforms.
    • It was found that states that undertook reforms, and were thus ranked low on AMFFRI, witnessed a relatively faster agri-GDP growth rate.
    • States which did not undertake required reforms, and thus were ranked high on the AMFFRI witnessed relatively lower agri-GDP growth rates.
    • There were some exceptions: Karnataka, Haryana and Maharashtra.
    • These states undertook reforms, and thus had low AMFFRI ranks, but they witnessed a low agri-GDP growth rate.
    • This is likely to be attributed to the delayed effect of reforms on the agri-performance.

    Way forward

    • As a part of the roadmap, the book makes a case for states to move beyond production-centric approach to a value-chain approach with FPOs at its centre.
    • It highlights importance and requirement of growing public investments in basic infrastructure.
    • And finally, in the longer run, rationalising subsidies via direct income transfer is suggested.

    Consider the question “Despite its comparatively lower contribution to the GDP, agriculture plays a central role in the Indian economy. What are the factors that make agriculture central to the economy? Suggest the pathway to fuel the growth of the sector.”

    Conclusion

    If the government follows this path of investing in infrastructure, ensuring a more diversified agriculture and linking small-holder FPOs with markets, it will pay rich dividends not only to the farming community but also the entire economy.

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  • Cyber Security – CERTs, Policy, etc

    Forestalling the cyber threats India faces

    op-ed snap | Security Issues | Mains Paper 3: Social Media Networks & Internal Security

    The article highlights the threat of a cyber attack on India’s critical infrastructure and suggests the need to take preventive measures.

    Targetting the infrastructure

    • The U.S.-based cyber security firm, Recorded Future revealed that the past blackout in Mumbai was linked to the cyber attack from China.
    • Recorded Future had also found an increase in malware attacks targeting the Indian government, defence organisations and the public sector.
    • Also that, coinciding with Chinese incursions in Eastern Ladakh, certain Indian power facilities had been targets of a cyber attack.
    • This indicates that India’s key infrastructure facilities, such as the power sector, are now in the crosshairs of a hostile China.
    • Indian government agencies, such as the National Critical Information Infrastructure Protection Centre (NCIIPC) and the Indian Computer Emergency Response Team (CERT-In) needs to be on its guard.

    Exploiting vulnerabilities

    • China’s cyber offensive is directed against many advanced nations as well.
    • In attempting this, what China is doing is essentially exploiting to perfection the many vulnerabilities that software companies (essentially those in the West), have deliberately left open (for offensive purposes at an opportune time).
    • Exploiting this loophole, and also turning matters on its head, it is companies in the western world that are now at the receiving end of such antics.
    • Chinese cyber espionage sets no limitations on targets.
    • Towards the end of 2020, and as the world prepared for large-scale deployment of COVID-19 vaccines, their attention was directed to vaccine distribution supply chains around the world.

    Way forward

    •  Nations should beware and be warned about how cyber attacks can bring a nation to its knees.
    • This was well demonstrated way back in 2016 through a major attack on Ukraine’s power grid.
    • The Ukraine example should be a wake-up call for India and the world, as in the intervening five years, the sophistication of cyber attacks and the kind of malware available have become more advanced.
    • India, could well be blindsided by Chinese cyber attacks on critical infrastructure if the latter sets out to do so, unless prophylactic measures are taken in time.

    Consider the question “Examine the threat posed by cyber attack on the critical information infrastructure? Suggest the ways to deal with it.”

    Conclusion

    Cyber’ could well be one of China’s main threat vectors employed against countries that do not fall in line with China’s world view. Drawing up a comprehensive cyber strategy, one that fully acknowledges the extent of the cyber threat from China, has thus become an imperative and immediate necessity.

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  • Tax Reforms

    Explained: The Cairn Tax Dispute

    IOCR | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    In December 2020, a three-member tribunal at the Permanent Court of Arbitration in the Netherlands ruled against India in its long-running tax dispute with the U.K.-based oil and gas company Cairn Energy.

    PCA Ruling against India

    • The tribunal ordered India to pay about $1.4 billion to the company.
    • Following this, Cairn Energy has successfully moved courts in five countries, including the US and the UK to recognise its claim as per the arbitration award.
    • The Netherlands, France, and Canada are the other three countries.
    • Such recognition by courts opens the door for Cairn Energy to seize assets of the Indian government in these jurisdictions by way of enforcing its claim, in case the latter doesn’t pay its dues.

    What is the dispute about?

    • The dispute started in early 2014 when Indian tax authorities started questioning Cairn Energy requesting information on the group’s reorganization in the financial year 2006-07.

    Issue over the tax due

    • This escalated, and by 2015, the authorities had sent the company a draft assessment order, assessing in the process that there was a principal tax amount of $1.6 billion that was due.
    • The year in reference, 2006-07, was one in which big corporate changes and developments took place in Cairn Energy.

    Basis of the tax demand: Sale of Shares

    • It was the year in which it not only undertook a corporate reorganization but also floated an Indian subsidiary, Cairn India, which in early 2007 got listed on the Indian Stock Market.
    • Through the corporate reorganization process, Cairn Energy had transferred all of its India assets, which were until then held by nine subsidiaries in various countries, to the newly-formed Cairn India.
    • But the tax authorities claimed that in the process of this reorganization, Cairn Energy had made capital gains worth ₹24,500 crores.
    • This, the department asserted, was the basis of the tax demand.

    Is this case similar to Vodafone’s battle with the government?

    • The Vodafone case in 2007 was triggered by Hong Kong’s Hutchinson Telecommunications’ sale of its stake in India’s Hutchinson Essar to Vodafone based out of the Netherlands.
    • The Hong Kong firm made a capital gain on this, which the Indian tax authorities deemed fit to tax.
    • They held that Vodafone should have withheld the tax, and therefore imposed liability on it.
    • The Supreme Court quashed the taxman’s demand that the sale of shares, in this case, would amount to transfer of a capital asset within the meaning of Section 2(14) of the Indian Income Tax Act”.

    What governs the Sale of Shares?

    • In the Union Budget of 2012, the Income Tax Act, 1961 was amended to make sure that even if a transfer of shares takes place outside India, such a transfer can be taxed.
    • This was done when the value of those shares is based on assets in India. And this was applied retrospectively.

    Cairn won over Retrospection

    • The action against Cairn Energy was based on this move.
    • India lost its arbitration case against Vodafone as well, with the government being asked to fork out around ₹80 crores.

    What happened after the tax claims in the Cairn Energy dispute?

    • After receiving a draft assessment order from the tax authorities, Cairn UK Holdings Ltd. appealed before the Income Tax Appellate Tribunal.
    • The tribunal, while providing the company relief from back-dated interest demands, however, upheld the main tax demand.
    • The company had initiated proceedings of arbitration under the U.K.-India bilateral investment treaty.
    • But during this time, the government sold Cairn’s almost 5% holding and seized dividends totalling ₹1,140 crore due to it from those shareholdings and set off a ₹1,590-crore tax refund against the demand.

    What was the main argument of Cairn Energy during the arbitration?

    • The claimants, Cairn Energy and Cairn UK Holdings argued that till the amendment was made to tax retrospectively in 2012, there was no tax on indirect transfers.
    • Indirect transfers here meant transfer by a non-resident of shares in non-Indian companies which indirectly held assets in India.
    • The application of the 2012 amendments, they alleged, constituted “manifest breaches” of the U.K.-India bilateral investment treaty.

    What was India’s defence during the arbitration?

    • India’s counter to the main charge of Cairn Energy was that its 2006 transactions were taxable irrespective of the 2012 amendments.
    • It argued that “Indian law has long permitted taxation where a transaction has a strong economic nexus with India”.
    • It said even if it is retrospective, it is “valid and binding applying the longstanding constitutional, legislative and legal framework in which the claimants have invested”.

    What did the arbitration tribunal rule?

    • The tribunal said the tax demand violated the U.K.-India bilateral investment treaty.
    • The tribunal said India “failed to accord Cairn Energy’s investments fair and equitable treatment” under the bilateral protection pact it had with the United Kingdom.
    • It also ordered India to compensate Cairn Energy and its subsidiary for “the total harm suffered” as a result of the breaches of the treaty.

    India’s way ahead

    • It has been reported in the media that India will appeal against the tribunal’s decision.
    • If enforcement proceedings are initiated, India is confident of addressing them and will strongly defend its interests.

    Back2Basics: Permanent Court of Arbitration (PCA)

    • It is an intergovernmental organization located in The Hague, Netherlands.
    • It is not a court in the traditional sense but provides services of arbitral tribunal to resolve disputes that arise out of international agreements between member states, international organizations or private parties.
    • The cases span a range of legal issues involving territorial and maritime boundaries, sovereignty, human rights, international investment, and international and regional trade.
    • The PCA is constituted through two separate multilateral conventions with a combined membership of 122 states.
    • The organization is not a United Nations agency, but the PCA is an official United Nations Observer.

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  • How scarcity of jobs is fuelling nativism in the States

    op-ed snap | Governance | Mains Paper 2: Executive & Judiciary,Federalism

    The article examines the factors contributing to the States pursuing domicile based employment policies.

    What is driving states to provide reservation to locals in private jobs

    • The Haryana government has recently passed legislation that mandates companies in Haryana to provide jobs to local Haryanvis first.
    • The unemployment rate in Haryana is the highest of all States in India, as per data from the Centre for Monitoring Indian Economy, or CMIE.
    • The cabinet of the government of Jharkhand approved similar legislation to reserve jobs for Jharkhand residents.
    • The Dravida Munnetra Kazhagam (DMK) in Tamil Nadu announced a similar proposal in its manifesto for the upcoming Assembly elections.
    • Such moves have attracted criticism from economists and commentators
    • Creating more jobs, not on reserving the few available ones’ is the popular refrain.
    • Creation of new jobs is not entirely in the control of State governments. It is a complex interplay of multitude of factors.

    Factors playing role in job creation

    • Job creation is obviously an outcome of the performance of the larger economy.
    • Chief Minister of a State in India has limited control over the management of the larger economy and thereby, attract new investors and businesses who can create jobs.
    • Businesses need abundant high quality skilled and unskilled labour, land at affordable prices, uninterrupted supply of electricity, water and other such ‘ease of business’ facilities for its expansion.
    • State governments in India can theoretically compete with each on these parameters.
    • Further, any tax advantages that a particular State can provide vis-à-vis others will increase its attractiveness.
    • But, realistically in India, in very few of these parameters can a poorer State compete against a richer State.

    Issues faced by the States

    • The availability of skilled local labour is a function of many decades of social progress of the State and cannot be retooled immediately.
    • After the introduction of the Goods and Services Tax (GST), State governments in India have lost their fiscal autonomy and have no powers to provide any tax concessions to businesses.
    • Beyond all these, the most critical factor in the choice of a location for a large business is what economists term as the ‘agglomeration effect’
    • Agglomeration effect is the ecosystem of supply chain, talent, good living conditions and so on attracting the other businesses.
    • So, a State with an already well-established network of suppliers, people, schools, etc. are at a greater advantage to attract even more businesses.
    • It is due to this agglomeration effect that the three richest large States (Maharashtra, Tamil Nadu and Karnataka) are three times richer than the three poorest large States (Bihar, Uttar Pradesh and Madhya Pradesh), in per-capita income, compared to 1.4 times in 1970.
    • In the absence of a level playing field and with no fiscal autonomy, it is enormously difficult for developing States in India to attract new investments and create new jobs.

    Consider the question “Examine the factors contributing to the nativist tendencies in the employment within the States. Suggest the measures to deal with the issue.”

    Conclusion

    Until the economic playing fields for the various States are levelled and much greater fiscal freedom provided to the States, “don’t protect but create jobs” will only remain a topic of a hollow lecture and moral sermons.

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  • e-Commerce: The New Boom

    Draft E-Commerce Policy

    Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    The Department for Promotion of Industry and Internal Trade (DPIIT) will soon come out with a common acceptable draft e-commerce policy.

    Earlier policy

    • The previous draft in July last year had proposed a regulator, an e-commerce law, periodic audit of companies that store or mirror Indian users’ data overseas.
    • The latest draft calls for streamlining of regulatory processes to ease the burden of compliance for activities related to e-commerce and regulations for data that will provide for sharing mechanism.

    What are the provisions of the new law?

    Data Usage

    • According to a revised draft, the government would lay down principles for the usage of data for industrial development, where such norms do not already exist.
    • They aim to put in place safeguards to prevent misuse and access of data by unauthorized persons.
    • Such safeguards may include regulating the cross-border flow of data pertaining to Indians and transactions taking place in India and the requirement of adequacy audits to be carried out by Indian firms.
    • As per the recent draft policy, violation of safeguards shall be viewed seriously and attract heavy penalties.

    Regulation, exports

    • Conformity assessment procedures will be put in place to verify that goods and services sold on e-commerce platforms meet required standards and technical regulations.
    • The government shall collect information from e-commerce platforms to aid it in making necessary decisions.
    • In order to ensure that e-commerce is not used to defraud customers, registration with an authority identified by the Government shall be mandatory.
    • The policy shall bring e-commerce exports on par with non-e-commerce exports by enabling online grant of drawbacks, advance authorization and GST refund.

    Consumer protection

    • As per the draft, e-commerce operators must ensure to bring out clear and transparent policies on discounts, including the basis of discount rates funded by platforms.
    • Such a move aims to ensure fair and equal treatment.
    • It said consumers have a right to be made aware of all relevant details about the goods and services offered for sale including country of origin, value addition in India etc.
    • In case the seller fails to establish the genuineness of his products within a reasonable time frame, the e-commerce platform shall delist the seller.

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  • Historical and Archaeological Findings in News

    Govt. reconstitutes panel for studying mythical Sarasvati River

    Prelims Only | History | Mains Paper 1: Arts & Culture

    The Centre has reconstituted an advisory committee to chalk out a plan for studying the mythical Sarasvati River for the next two years after the earlier panel’s term ended in 2019.

    Do you know?

    Rigveda describes India as a land of Sapta Sindhavah.

    There is a verse in Nadistuti sukta of Rigveda , hymn of praise of rivers which mentions the following 10 rivers: Ganga, Yamuna, Sarasvati, Sutudri, Parusni, Asikni, Marudvrdha , Vitasta , Arjikiya , Susoma.

    The Shutudri was Sutlej, Parushni was Ravi, Asikni was Chenab and Vitasta was Jhelum.

    Sarasvati River

    • The Sarasvati River is an extinct river mentioned in the Rig Veda and later Vedic and post-Vedic texts.
    • As a physical river, it is described as a small river ending in “a terminal lake (Samudra).
    • As the goddess Sarasvati, the main referent for the term “Sarasvati” which developed into an independent identity in post-Vedic times, she is described as a powerful river and mighty flood.
    • The Sarasvati is also considered by Hindus to exist in a metaphysical form, in which it formed a confluence with the sacred rivers Ganges and Yamuna, at the Triveni Sangam.

    Vedic reference of the river

    • Rigvedic and later Vedic texts have been used to propose identification with present-day rivers, or ancient riverbeds.
    • The Nadistuti hymn in the Rigveda (10.75) mentions the Sarasvati between the Yamuna in the east and the Sutlej in the west.
    • Later Vedic texts like the Tandya and Jaiminiya Brahmanas, as well as the Mahabharata, mention that the Sarasvati dried up in a desert.

    What led to its extinction?

    • Since the late 19th-century, scholars have proposed to identify the Rig Vedic Saraswati river with the Ghaggar-Hakra river system.
    • This flows through northwestern India and eastern Pakistan, between the Yamuna and the Sutlej.
    • Recent geophysical research suggests that the Ghaggar-Hakra system was glacier-fed until 8,000 years ago, and then became a system of monsoon-fed rivers.
    • ISRO has observed that major Indus Valley Civilization sites at Kalibangan (Rajasthan), Banawali and Rakhigarhi (Haryana), Dholavira and Lothal (Gujarat) lay along this course.
    • The Indus Valley Civilisation may have declined as a result of climatic change when the monsoons that fed the rivers diminished at around the time civilisation diminished some 4,000 years ago.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    What is Index of Industrial Production (IIP)?

    DOMR | Economics | Mains Paper 3: Indian Economy

    Last week saw the release of the Index of Industrial Production (IIP), which recorded a contraction of 1.6% in January.

    Index of Industrial Production (IIP)

    • Index of Industrial Production data or IIP as it is commonly called is an index that tracks manufacturing activity in different sectors of an economy.
    • The IIP number measures the industrial production for the period under review, usually a month, as against the reference period.
    • IIP is a key economic indicator of the manufacturing sector of the economy.
    • There is a lag of six weeks in the publication of the IIP index data after the reference month ends.
    • IIP index is currently calculated using 2011-2012 as the base year.

    IIP Index Components:

    • Mining, manufacturing, and electricity are the three broad sectors in which IIP constituents fall.
    • The relative weights of these three sectors are 77.6% (manufacturing), 14.4% (mining) and 8% (electricity).
    • Electricity, crude oil, coal, cement, steel, refinery products, natural gas, and fertilizers are the eight core industries that comprise about 40 per cent of the weight of items included in the IIP.

    Basket of products

    There are 6 sub-categories:

    1. Primary Goods (consisting of mining, electricity, fuels and fertilisers)
    2. Capital Goods (e.g. machinery items)
    3. Intermediate Goods (e.g. yarns, chemicals, semi-finished steel items, etc)
    4. Infrastructure Goods (e.g. paints, cement, cables, bricks and tiles, rail materials, etc)
    5. Consumer Durables (e.g. garments, telephones, passenger vehicles, etc)
    6. Consumer Non-durables (e.g. food items, medicines, toiletries, etc)

    Who releases IIP data?

    • The IIP data is compiled and published by CSO every month.
    • CSO or Central Statistical Organisation operates under the Ministry of Statistics and Programme Implementation (MoSPI).
    • The IIP index data, once released, is also available on the PIB website.

    Try this PYQ:

    Q. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

    (a) Coal production

    (b) Electricity generation

    (c) Fertilizer production

    (d) Steel production

    Who uses IIP data?

    • The factory production data (IIP) is used by various government agencies such as the Ministry of Finance, the Reserve Bank of India (RBI), private firms and analysts, among others for analytical purposes.
    • The data is also used to compile the Gross Value Added (GVA) of the manufacturing sector in the Gross Domestic Product (GDP) on a quarterly basis.

    IIP base year change:

    • The base year was changed to 2011-12 from 2004-05 in the year 2017.
    • The earlier base years were 1937, 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94 and 2004-05.

    IIP vs ASI

    • While the IIP is a monthly indicator, the Annual Survey of Industries (ASI) is the prime source of long-term industrial statistics.
    • The ASI is used to track the health of industrial activity in the economy over a longer period. The index is compiled out of a much larger sample of industries compared to IIP.
    • The IIP essentially tracks the change in the volume of production in Indian industries.

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