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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Centre’s scrutiny of UP’s conversion ban ordinance

    | Polity | Mains Paper 2: Parliament & State Legislatures

    The ordinance on unlawful religious conversions, promulgated by the UP government last year, has not been sent to the Centre for examination, according to a reply from the Union Home Ministry.

    What is the news?

    • The Ministry of Home Affairs (MHA) examines bills passed by State assemblies that are repugnant with Central laws before they get the President’s assent to become a law.
    • This is done in accordance with Article 213 of the Constitution which provides for an ordinance making power of the Governor of a state.

    What does Article 213 say?

    • Governor of an Indian state draws ordinance making power from Article 21.
    • This Article empowers the Governor to promulgate Ordinance, during the recess of the legislature, if circumstances exist which render it necessary for him to take immediate action.
    • To issue an Ordinance, the Governor must be satisfied with the circumstances that make it necessary for him to take immediate action.
    • All Ordinances promulgated by the Governor in the State have the same effect and force as an Act of Legislature of the State.
    • The Ordinance must be laid before the State Legislature when it reassembles and it must be upheld by the State legislature, failure to which the Ordinance would be invalid.

    Governor CANNOT promulgate an ordinance if:

    1. The Ordinance has the provisions which of embodied in a bill would require President’s sanction.
    2. The Ordinance has the provisions which the governor would reserve as a Bill containing them for the President’s sanction.
    3. If an act of the State Legislature has the same provisions that would be invalid without the assent of the President.

    Try this PYQ:

    Q.Which of the following are the discretionary powers given to the Governor of a State?

    1. Sending a report to the President of India for imposing the President’s rule
    2. Appointing the Ministers
    3. Reserving certain bills passed by the State Legislature for consideration of the President of India
    4. Making the rules to conduct the business of the State Government

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 1 and 3 only

    (c) 2, 3 and 4 only

    (d) 1, 2, 3 and 4

    Centre’s scrutiny of ordinances

    • MHA sends State bills for inter-ministerial consultation before they get the President’s nod.
    • This is done only when it has repugnancy with central laws, deviates from national or central policy and when it can be challenged for legal and constitutional validity.

    Controversy with UP’s ordinance

    • The controversial ordinance was promulgated in November 2020 and so far more than 90 people, most of them minorities, have been booked.
    • The law makes religious conversion a non-bailable offence, inviting penalties of up to 10 years in prison.
    • It is on the ground if guilty is found to be effected for marriage or through misrepresentation, force, undue influence, coercion, allurement or other alleged fraudulent means.
    • According to the Ordinance, in case of conversion done by a woman for the sole purpose of marriage, the marriage would be declared null and void.

    Back2Basics: Ordinance

    • Article 123 of the Constitution of India gives the power and authority to the President of India to issue an ordinance only when both the Houses of Parliament are not in session.
    • In addition, it states that any ordinance can have the same force and effect as a statute of Parliament only if it is laid before both the houses of the Parliament.
    • Further, Ordinance so made will hold good only for the duration of six weeks from the reassembly of Parliament.
    • Article 213 mandates near-identical terms with respect to the ordinances on the subject of State authority.
    • It is understood that the authority to issue ordinances shall be used only to meet the emergent demands arising out of extraordinary situations.

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  • Women empowerment issues – Jobs,Reservation and education

    Termination of Pregnancy (MTP) Amendment Bill, 2020

    | Indian Society | Mains Paper 1: Role Of Women & Women Organization

    A panel of doctors to decide on the termination of pregnancy beyond 24 weeks as proposed in the Medical Termination of Pregnancy (MTP) Amendment Bill, 2020, is “unfeasible” as 82% of these posts are lying vacant in the country, finds a new study.

    Q. What are the differing opinions with regards to the Termination of Pregnancy (MTP) Amendment Bill, 2020? Discuss.

    About the MTP Amendment Bill

    The MTP Bill was passed in Lok Sabha in March 2020 and is likely to be brought before Rajya Sabha during the ongoing Budget Session. Its salient features included:

    • Proposing requirement for the opinion of one provider for termination of pregnancy, up to 20 weeks of gestation and introducing the requirement of the opinion of two providers for termination of pregnancy of 20-24 weeks of gestation.
    • Enhancing the upper gestation limit from 20 to 24 weeks for special categories of women which will be defined in the amendments to the MTP Rules and would include ‘vulnerable women including survivors of rape, victims of incest and other vulnerable women (like differently-abled women, Minors) etc.
    • Upper gestation limit not to apply in cases of substantial foetal abnormalities diagnosed by Medical Board. The composition, functions and other details of Medical Board to be prescribed subsequently in Rules under the Act.
    • Anonymity of the person: Name and other particulars of a woman whose pregnancy has been terminated shall not be revealed except to a person authorised in any law for the time being in force.

    Benefits sought with the bill

    • It is seen as a step towards the safety and well-being of the women and many women will be benefitted by this.
    • Recently several petitions were received by the Courts seeking permission for aborting pregnancies at a gestational age beyond the present permissible limit on grounds of foetal abnormalities or pregnancies due to sexual violence faced by women.
    • The proposed increase in gestational age will ensure dignity, autonomy, confidentiality and justice for women who need to terminate the pregnancy.

    Flaws in the bill

    • The Bill allows abortion after 24 weeks only in cases where a Medical Board diagnoses substantial foetal abnormalities.
    • This implies that for a case requiring abortion due to rape, that exceeds 24-weeks, the only recourse remains through a Writ Petition.
    • The Bill does not specify the categories of women who may terminate pregnancies between 20-24 weeks and leaves it to be prescribed through Rules.
    • The Act (and the Bill) require an abortion to be performed only by doctors with specialization in gynaecology or obstetrics.
    • As there is a 75% shortage of such doctors in community health centres in rural areas, pregnant women may continue to find it difficult to access facilities for safe abortions.

    Key Issues and Analysis

    • There are differing opinions with regard to allowing abortions. One opinion is that terminating a pregnancy is the choice of the pregnant woman and a part of her reproductive rights.
    • The other is that the state has an obligation to protect life, and hence should provide for the protection of the foetus.
    • Across the world, countries set varying conditions and time limits for allowing abortions, based on foetal health, and risk to the pregnant woman.
    • Several Writ Petitions have been filed by women seeking permission to abort pregnancies beyond 20-weeks due to foetal abnormalities or rape.

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  • Modern Indian History-Events and Personalities

    Who are the Bargis?

    | | Mains Paper 1: Modern Indian History

    As the Assembly elections in West Bengal draw closer, the ‘insider-outsider’ theme has grown to become one of the topics of political debate. Bengali politicians have been terming outsider campaigners as ‘bargis’.

    Bargis: Etymology of the term

    • The term ‘Bargi’is of special significance in Bengal’s history.
    • It is a reference to the several Maratha invasions of West Bengal between 1741 and 1751, which resulted in looting, plundering and massacres of what was then Mughal territory.
    • The happenings of this specific period have affected Bengal’s consciousness so much that they have an established presence in Bengali folklore and literature.
    • Today this term is used as a casual reference to troublesome outsider forces.

    Who were the bargis?

    • Simply speaking, the word bargi referred to cavalrymen in Maratha and Mughal armies.
    • The word comes from the Persian “bargir”, literally meaning “burden taker”, notes historian Surendra Nath Sen in his 1928 work The Military System Of The Marathas.
    • But in the Mughal and Maratha armies, the term signified a soldier who rode a horse furnished by his employer.
    • In the Maratha cavalry, any able-bodied person could enlist as a bargir, unless he had the means to buy a horse and military outfit.
    • Both the bargirs and silhedars were under the overall control of the Sarnobat (Persian for “Sar-i-Naubat”, or Commander in Chief).

    Why did the Marathas raid Bengal?

    • Maratha incursions into the Mughal province of Bengal (which included the regions of Bihar, Bengal and Orissa) between 1741 and 1751 came at a time of intense political uncertainty of then Mughal India.
    • At the Maratha capital in Satara, Chhatrapati Shahu was trying in vain to resolve the differences between his two top power centres– the Peshwa dynasty of Pune and Raghoji I Bhonsale of Nagpur.
    • As the Mughal Empire was crumbling by the 18th century, the two Maratha chieftains were scrambling to secure taxation rights in its far-flung regions, and violently disagreed over their spheres of influence.
    • In Bengal – a Mughal Subah (subdivision) during this era– Nawab Subahdar Sarfaraz Khan had been overthrown by his deputy Alivardi Khan.

    Try this PYQ:

    What was the immediate cause for Ahmad Shah Abdali to invade and fight the Third Battle of Panipat:

    (a) He wanted to avenge the expulsion by Marathas of his viceroy Timur Shah from Lahore

    (b) The frustrated governor of Jullundhar Adina Beg khan invited him to invade Punjab

    (c) He wanted to punish Mughal administration for non-payment of the revenues of the Chahar Mahal (Gujrat Aurangabad, Sialkot and Pasrur)

    (d) He wanted to annex all the fertile plains of Punjab upto borders of Delhi to his kingdom

    Stir within the Maratha empire

    • After Khan’s inauguration, the provincial governor of Orissa, Zafar Khan Rustam Jung, more commonly known as Murshid Quli II, rebelled against the usurper.
    • The revolt failed, and Jung enlisted Raghoji’s help to oust Khan.
    • Raghoji was also motivated by internal politics within the Maratha camp, fearful as he was of Peshwa Balaji Baji Rao, also known as of Nana Saheb who trying to establish his claim over Bengal first at this time of political disturbance in the province.

    Maratha invasions of Bengal

    • The Marathas first entered the Mughal province in August 1741, when Raghoji’s infantry troops accompanied Mirza Baqar Ali, the son-in-law of Jung, to conquer Orissa.
    • In 1743, the Bengal province faced the wrath of two Maratha armies – both, as it happened, at loggerheads with each other.
    • The Peshwa forces proceeded further, committing all sorts of atrocities on the way in a land which they had ostensibly come to protect.
    • Raghoji’s armies were also doing the same, but at least he had openly arrived as an invader.

    Ousting the ‘local’ invaders

    • Finally, in 1751, after remaining encamped in western Bengal for a significant amount of time, the Marathas reached an agreement with Alivardi Khan.
    • The Nawab promised an annual tribute of 12 lakh rupees and the cession of Orissa to the Marathas. In return, the Bhonsales gave word to not return to Bengal.

    Damage caused

    • Ten years of Maratha invasions had crippled Bengal’s economy.
    • The Dutch believed that 400,000 people had been killed. Losses of weavers, silk winders and those who cultivated mulberry were particularly high.
    • Historian P J Marshall noted that people were so distressed that they would take flight even on imaginary alarms, and wander around.

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  • NGOs vs. GoI: The Conflicts and Scrutinies

    What are Social Stock Exchanges?

    | Indian Society | Mains Paper 2: NGO, SHG & Civil Society

    The Economic Survey 2021 has backed setting up of Social Stock Exchange in India.

    Q. What are Social Stock Exchanges? Discuss how it will help finance social enterprises in India.

    What are Social Stock Exchanges (SSEs)?

    • An SSE is a platform which allows investors to buy shares in social enterprises vetted by an official exchange.
    • The Union Budget 2019 proposed setting up of first of its kind SSE in India.
    • The SSE will function as a common platform where social enterprises can raise funds from the public.
    • It will function on the lines of major stock exchanges like BSE and NSE. However, the purpose of the Social Stock Exchange will be different – not profit, but social welfare.
    • Under the regulatory ambit of SEBI, a listing of social enterprises and voluntary organizations will be undertaken so that they can raise capital as equity, debt or as units like a mutual fund.

    Why SSEs?

    • India needs massive investments in the coming years to be able to meet the human development goals identified by global bodies like the UN.
    • This can’t be done through government expenditure alone. Private enterprises working in the social sector also need to step up their activities.
    • Currently, social enterprises are very active in India. However, they face challenges in raising funds.
    • One of the biggest hurdles they face is, apparently, the lack of trust from common investors.

    Benefits

    • There is a great opportunity to unlock funds from donors, philanthropic foundations and CSR spenders, in the form of zero-coupon zero principal bonds. These bonds will be listed on the SSE.
    • At first, the SSE could become a repository of social enterprises and impact investors.
    • The registration could be done through a standard process.
    • The SEs could be categorized into different stages such as as- Idea, growth stage and likewise, investors can also be grouped based on the type of investment.

    Development so far

    • The Economic Survey 2021 highlighted the concept of setting up a social stock exchange (SSE) in India.
    • It will be under the regulatory ambit of the Securities and Exchange Board of India (SEBI).
    • SEBI constituted a working group (WG) on social stock exchanges back in September 2019.
    • The WG has outlined its vision and made recommendations, which include the participation of NPOs and for-profit enterprises (FPE) on SSE subject to committing to minimum reporting requirements.

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  • Corruption Challenges – Lokpal, POCA, etc

    Highlights of the Corruption Perception Index, 2020

    IOCR | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    The Transparency International (TI)’s corruption perception index (CPI) was recently released for 2020.

    Another set of useful data in news to be noted by aspirants. Such data are essential and need to be memorized. One must note here. Such data recur every year. So it is not a big task to deal with such numbers along with other critical indices.

    About the Corruption Perception Index

    • The index ranks 180 countries and territories by their perceived levels of public sector corruption.
    • It uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.

    Global prospects

    • Denmark and New Zealand top the index, with 88 points. Syria, Somalia and South Sudan come last, with 14, 12 and 12 points, respectively.
    • Nearly half of countries have been stagnant on the index for almost a decade, indicating stalled government efforts to tackle the root causes of corruption.
    • More than two-thirds score below 50.

    India’s performance

    • The CPI score for India is constant this year as well as the previous year’s score.
    • India’s rank is 86 out of 180 nations with a score of 40.
    • It was ranked at 80th position out of 180 countries in 2019 with a score of 41.

    A comparison with neighbours

    • At 40, India’s score is below the average score of the Asia-Pacific region (31 countries) and global average, the CPI 2020 report stated.
    • India’s overall score is also two points less than that of China, which docked at 78th position, with a score of 42.
    • Pakistan, however, scored just 31 points, falling at the 144th position on the index.

    What does it mean for India?

    • India is still very low on corruption Index, the report said, noting that experts feel the CPI does not reflect the actual corruption level in any country.
    • The integrity score determines the corruption situation of a country.

    Recommendations made by TI

    To reduce corruption and better respond to future crises, Transparency International recommends that all governments:

    • Strengthen oversight institutions to ensure resources reach those most in need. Anti-corruption authorities and oversight institutions must have sufficient funds, resources and independence to perform their duties.
    • Ensure open and transparent contracting to combat wrong-doing, identify conflicts of interest and ensure fair pricing.
    • Defend democracy and promote civic space to create the enabling conditions to hold governments accountable.
    • Publish relevant data and guarantee access to information to ensure the public receives easy, accessible, timely and meaningful information.

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  • Gravitational Wave Observations

    Type-II Supernova and the role of neutrinos

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    This newscard is an excerpt from the original article published in The Hindu.

    Another space-based abstract terminology has appeared in TH.

    What is the news about?

    • Many stars, towards the end of their lifetimes, form supernovas – massive explosions that send their outer layers shooting into the surrounding space.
    • Most of the energy of the supernova is carried away by neutrinos – tiny particles with no charge and which interact weakly with matter.
    • Researching the mechanisms of the so-called Type II supernovas, a team from IIT Guwahati has come up with new insights into the part played by neutrinos in this dramatic death of massive stars.

    What are Neutrinos?

    • Proton, neutron, and electron are tiny particles that makeup atoms.
    • The neutrino is also a tiny elementary particle, but it is not part of the atom.
    • Neutrino has a very tiny mass, no charge and spins half.
    • It interacts very weakly with other matter particles.
    • Neutrinos come from the sun (solar neutrinos) and other stars, cosmic rays that come from beyond the solar system, and from the Big Bang from which our Universe originated.
    • They can also be produced in the lab.

    Their types

    • Neutrinos come in three ‘flavours’, another name for ‘types’, and each flavour is associated with a light elementary particle.
    • For instance, the electron-neutrino is associated with the electron; the muon-neutrino with the muon and the tau-neutrino with the tau particle.

    What is Supernova?

    • All the stars burn nuclear fuel in their cores to produce energy.
    • The heat generates internal pressure which pushes outwards and prevents the star from collapsing inward due to the action of gravity on its own mass.
    • But when the star ages and runs out of fuel to burn, it starts to cool inside.
    • This causes a lowering of its internal pressure and therefore the force of gravity wins; the star starts to collapse inwards.
    • This builds up shock waves because it happens very suddenly, and the shock wave sends the outer material of the star flying. This is what is perceived as a supernova. This happens in very massive stars.

    Try this PYQ:

    Q. Which of the following is/are cited by the scientists as evidence/evidence for the continued expansion of the universe?

    1. Detection of microwaves in space
    2. Observation of redshirt phenomenon in space
    3. Movement of asteroids in space
    4. Occurrence of supernova explosions in space code

    (a) 1 and 2 only

    (b) 2 only

    (c) 1, 3 and 4

    (d) None of the above can be cited as evidence

    The Type-II Supernova

    • In stars that are more than eight times as massive as the Sun, the supernova is accompanied by a collapsing of the inner material of the dying star – this is also known as core-collapse supernova or Type II supernova.

    Role of neutrinos

    • The collapsing core may form a black hole or a neutron star, according to its mass.
    • As they spew out of the raging supernova, the neutrinos can change from one flavour to another in a process known as neutrino oscillations.
    • Due to the high density and energy of the supernova, it generates neutrino oscillations happening simultaneously over different energies (unlike normal neutrino oscillation), termed collective neutrino oscillation.
    • The oscillation result may dramatically change when one allows the evolution with the angular asymmetry, the oscillations can happen at a nanosecond time scale, termed fast oscillation.

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  • International Space Agencies – Missions and Discoveries

    What caused the tilt to Saturn’s rotation axis?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    The tilt of the rotation axis of the gas giant Saturn may in fact be caused by its moons, space scientists have reported in the journal Nature Astronomy.

    About Saturn

    • Saturn is the sixth planet from the Sun and the second-largest in the Solar System, after Jupiter.
    • It is a gas giant with an average radius of about nine times that of Earth.
    • It only has one-eighth the average density of Earth; however, with its larger volume, Saturn is over 95 times more massive.

    Reasons for Saturn’s tilt

    • Saturn’s axis interacted with the path of the planet Neptune and gradually tilted until it reached the inclination of 27 degrees observed today.
    • This current tilt of Saturn’s rotation axis is caused by the migration of its satellites, and especially by that of its largest moon, Titan.
    • Recent observations have shown that Titan and the other moons are gradually moving away from Saturn much faster than astronomers had previously estimated.
    • By incorporating this increased migration rate into their calculations, the researchers concluded that this process affects the inclination of Saturn’s rotation axis.

    Try this PYQ:

    Q.Which phenomenon has Venusian winds rotating 60 times faster than the planet below on the dark side?

    (a) Super rotation

    (b) Monrotation

    (c) Dual rotation

    (d) Macrrotation

    Continuous tilting

    • As its satellites move further away, the planet tilts more and more.
    • In fact, Saturn’s axis is still tilting, and what we see today is merely a transitional stage in this shift.
    • Over the next few billion years, the inclination of Saturn’s axis could more than double.

    Why it matters?

    • The decisive event that tilted Saturn is thought to have occurred relatively recently.
    • For over three billion years after its formation, Saturn’s rotation axis remained only slightly tilted.
    • It was only roughly a billion years ago that the gradual motion of its satellites triggered a resonance phenomenon that continues today.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Credit rating

    | Economics | Mains Paper 3: Indian Economy

    The Economic Survey-2020-21 highlights the issue of the adverse rating given to emerging economies by global credit rating agencies. This article suggests using our flawless repayment record as the basis of argument.

    Prejudice against emerging economies

    • The Economic Survey for 2020-21, charged international credit rating agencies with prejudice against emerging economies such as India and China.
    • The Survey has used economic size as an argument.
    • The economy that is the world’s fifth-largest has predominantly been rated AAA, S&P’s top rating.
    • By contrast, India, which displaced the UK in 2019 as the world’s fifth-largest, has been rated BBB-, the lowest investment grade.
    • The Survey points out that since 1994, only twice has the credit rating (as assigned by S&P and Moody’s) of the fifth-largest economy in US dollar terms been poor.
    • This was when China and India rose to that rank, in 2005 and 2019 respectively.

    Issues with Credit Rating

    •  Rating agencies rarely get credit quality right and they have been found to be well behind the curve in almost every default crisis.
    • The behavior of these agencies has been pro-cyclical, which is often seen to aggravate crises and fuel bubbles.
    • They are too lenient when the times are good, and too harsh when economic conditions worsen, making booms and busts that much more dramatic.

    What should be the basis of India’s argument

    • Unless the country has the privilege of printing the world’s reserve currency, as the US has, there is nothing special that ensures a large economy will always repay what it owes.
    • India’s argument should revolve around the country’s flawless repayment record.
    • The last time we were on the verge of a sovereign default, in 1991, we reformed our economy.
    • Today, the country has foreign exchange reserves in excess of $584 billion, while its total external debt, including that of the private sector, is a shade over $556 billion.

    Consider the question “The Economic Survey of 2020-21 point to the adverse rating of India economy by the global rating agencies. What is the significance of such ratings for the economy. What should be the basis of the argument against India’s adverse rating by the agencies?”

    Conclusion

    Despite the above-mentioned factors, we still find that Indian borrowers must pay higher rates of interest overseas than they would have to with a better rating. Global rating agencies need to overhaul their methodology to better reflect reality.

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  • How PFMS is ensuring transformation via digital inclusion

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    The article highlights the role played by the Public Financial Management System (PFMS) in promoting the good governance.

    About PFMS

    • With the objective of bringing in transformational accountability and transparency and to further promote good governance, the Indian government envisioned Public Financial Management System (PFMS).
    • PFMS has evolved as an end to end solution for Processing, Monitoring, and reconciling financial flows of Central Govt.
    • Today, PFMS has empowered governance to become more responsive, accountable, and transparent.

    Mandate of PFMS

    • Through Cabinet decision, PFMS has been mandated the following:
    • It acts as a financial management platform for all plan schemes and allows for efficient and effective tracking of fund flow to the lowest level of implementation for the planning scheme of the Government.
    • It is mandated to provide information on fund utilization leading to better monitoring, review, and decision support system to enhance public accountability in the implementation of plan schemes.
    • To result in effectiveness and economy in Public Finance Management through better cash management for Government transparency in public expenditure and real-time information on resource availability and utilization across schemes.

    Achievements of PFMS

    • PFMS can be credited to the transformation of Direct beneficiary transfers space in financial governance in India.
    • An estimated 102 crore DBT transactions were done through PFMS in FY 19-20 amounting to about ₹2.67 lakh crore.
    • Through efficient use of technology, PFMS is estimated to have saved about ₹1 lakh crore in direct beneficiary transfers.

    4 Factors that could determine the successful evolution of PFMS in future

    • Agility in terms of Onboarding/Integrating all Govt. accounts: Only after ensuring significant coverage, the true execution of the concept will take place.
    • Effective data management capabilities: PFMS will have to add significant data management capabilities in order to ensure better monitoring/review to deliver on the idea of a decision support system for effective cash management or management of idle float in the system.
    • Constantly upgrading: Adaption to rapid changes in technology is another key area that would call for a considerable amount of focus both in terms of gradation and monitoring.
    • Collaboration with the banking system: Lastly, one of the most critical factors for the successful execution of PFMS is its integration with the banking systems.
    • The Banks and PFMS will have to actively partner to ensure faster coverage/integration of all the Govt. entities.

    Consider the question “Governance in India has long been marred with structural challenges like transparency, lack of accountability and sustainable and inclusive growth. In light of this, discuss the role played by the Public Financial Management System in tackling these challenges.” 

    Conclusion

    The PFMS has revolutionized the ways public finances are managed in the country. With constant improvement and increasing coverage, the scope of PFMS is ever-increasing. Going ahead, PFMS will not only be seen as a tool for managing planned expenditure but will also add new meanings to Direct Beneficiary transfers, data-driven cash management, and e-Governance in India.

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  • Government Budgets

    An overview of Economic Survey 2020-21

    op-ed snap | Economics | Mains Paper 3: Government Budgeting

    The pandemic has been leaving its imprint various aspects of our lives and Economic Survey is no different. This year’s Economic Survey focuses on the recovery path of the economy disrupted by the pandemic. The article takes an overview of the survey and also mentions the missing areas.

    Focus on a recovery path

    • The Economic Survey analyses the broad trends at the macro level and the profiling of the initiatives across various economic activities.
    • This year, the Economic Survey focuses on the recovery path after initial derailment and the losses suffered by the Indian economy due to the pandemic.
    • The recovery is expected to follow a V-shaped path.
    • The Survey advocates countercyclical fiscal policies based on the premise that growth leads to debt sustainability.
    • The Survey brings together various relevant factors that have both a short and long-term impact on the economy and the budget.
    • This year’s Survey focuses on enhanced public healthcare spending and demonstrates how effective it has been in slashing out-of-pocket expenditures in the recent past.
    • It also shows the brilliant performance under the Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the improved outcomes in states that have implemented the programme.
    • With focus on basic needs, the Survey has brought back national attention on the fundamental developmental paradigm.
    • The idea of analysing inequalities in times of recovery is a reassuring premise to move on with.

    Comparison with past Economic Surveys

    • If we consider the last two Economic Surveys, the introduction of new concepts and approaches has been quite evident.
    •  In the Survey for 2018-19, the idea of “nudge” helped provide recognition of the importance of social behaviour change for any policy to succeed.
    • This led to the adoption of transformative approach in the Swachh Bharat Mission and Beti Bachao Beti Padhao initiative that integrated behavioural insights.
    • Another powerful idea has been using technology to run and monitor welfare schemes.
    • The Economic Survey 2019-20 talked overwhelmingly about the importance of wealth creation, entrepreneurship, and financial markets in the economic development.

    What the Survey misses

    • The Survey should have focussed on a new narrative for trade.
    • Apart from explaining the missing value chains and integration with South and Southeast Asia, the survey should have analysed the high cost of tariffs when 38 per cent of our exports are import-dependent.

    Consider the question “In the wake of economic disruption caused by the pandemic, India needs a new narrative for trade. However, India faces the challenge of missing value chains and lack of integration with South and Southeast Asia. In light of this, suggest the policies India should adopt as new narrative for trade.“

    Conclusion

    Besides trade, FDI inflows and the accumulation of foreign exchange reserves has been remarkable this year. It is expected that India will emerge as an important link in the global value chain sector which has been visibly disrupted by the pandemic

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