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

    Understanding the interplay between subsidies and agri-pollution

    Agriculture’s contribution to air pollution

    • Agriculture’s contribution to air pollution runs deeper than what happens between crop seasons.
    • The Indo-Gangetic plain is also one of the world’s largest and rapidly-growing ammonia hotspots.
    • Atmospheric ammonia, which comes from fertiliser use, animal husbandry, and other agricultural practices, combines with emissions from power plants, transportation and other fossil-fuel burning to form fine particles.

    Impact of pollution on agriculture

    • It is important to note that agriculture is a victim of pollution as well as its perpetrator.
    • Particulate matter and ground-level ozone formed from industrial, power plant, and transportation emissions among other ingredients cause double-digit losses in crop yields.
    • Ozone damages plant cells, handicapping photosynthesis, while particulate matter dims the sunlight that reaches crops.
    • Agriculture scientist Tony Fischer’s 2019 estimates of the two pollutants’ combined effect suggest that as much as 30 per cent of India’s wheat yield is missing (Sage Journals, Outlook on Agriculture).
    • Earlier, B Sinha et al (2015), in Atmospheric Chemistry and Physics Discussions, found that high ozone levels in parts of Haryana and Punjab could diminish rice yields by a quarter and cotton by half.

    Role played by subsidies

    • The current system of subsidies is a big reason that there is stubble on these fields in the first place.
    • Free power — and consequently, “free” water, pumped from the ground — is a big part of what makes growing rice in these areas attractive.
    • Open-ended procurement of paddy, despite the bulging stocks of grains with the Food Corporation of India, adds to the incentives.
    • Subsidies account for almost 15 per cent of the value of rice being produced in Punjab-Haryana belt.
    • Fertiliser, particularly urea in granular form, is highly subsidised.
    • It is one of the cheapest forms of nitrogen-based fertiliser, easy to store and easy to transport, but it is also one of the first to “volatilise,” or release ammonia into the air.
    • This loss of nitrogen then leads to a cycle of more and more fertiliser being applied to get the intended benefits for crops.

    Way forward

    • We need to shift the nature of support to farmers from input subsidies to investment subsidies.
    • This could involve the conversion of paddy areas in this belt to orchards with drip irrigation, vegetables, corn, cotton, pulses and oilseeds.
    • All of the above consume much less water, much less power and fertilisers and don’t create stubble to burn.
    • A diversification package of, say, Rs 10,000 crore spread over the next five years, equally contributed by the Centre and states, may be the best way to move forward in reducing agriculture-related pollution.
    • The approach to diversification has to be demand-led, with a holistic framework of the value chain, from farm to fork and not just focused on production.
    • On the fertiliser front, it would be better to give farmers input subsidy in cash on per hectare basis, and free up the prices of fertilisers completely.

    Conclusion

    Taken together, these measures could double farmers’ incomes, promote efficiency in resource use, and reduce pollution — a win-win solution for all.

  • Coal and Mining Sector

    India’s Deep Ocean Mission

    India will soon launch an ambitious ‘Deep Ocean Mission’ that envisages exploration of minerals, energy and marine diversity of the underwater world, a vast part of which still remains unexplored.

    Deep Ocean Mission (DOM)

    Nodal Agency: Ministry of Earth Sciences (MoES)

    • The mission proposes to explore the deep ocean similar to the space exploration started by ISRO.
    • Underwater robotics and ‘manned’ submersibles are key components of the Mission which will help India harness various living and non-living (water, mineral and energy) resources from the seabed and deep water.
    • The tasks that will be undertaken over this period include deep-sea mining, survey, energy exploration and the offshore-based desalination.
    • These technological developments are funded under an umbrella scheme of the government – called Ocean Services, Technology, Observations, Resources Modelling and Science (O-SMART).

     Mining PMN

    • One of the main aims of the mission is to explore and extract polymetallic nodules (PMN).
    • These are small potato-like rounded accretions composed of minerals such as manganese, nickel, cobalt, copper and iron hydroxide.
    • They lie scattered on the Indian Ocean floor at depths of about 6,000 m and the size can vary from a few millimetres to centimetres.
    • These metals can be extracted and used in electronic devices, smartphones, batteries and even for solar panels.

    Where will the team mine?

    • The International Seabed Authority (ISA), an autonomous international organisation established under the 1982 United Nations Convention on the Law of the Sea, allots the ‘area’ for deep-sea mining.
    • India was the first country to receive the status of a ‘Pioneer Investor ‘ in 1987 and was given an area of about 1.5 lakh sq km in the Central Indian Ocean Basin (CIOB) for nodule exploration.
    • In 2002, India signed a contract with the ISA and after complete resource analysis of the seabed 50% was surrendered and the country retained an area of 75,000 sq km.

    Which are the other countries that are in the race to mine the deep sea?

    • Apart from the CIOB, polymetallic nodules have been identified from the central Pacific Ocean. It is known as the Clarion-Clipperton Zone.
    • According to the ISA’s website, it has entered into 15-year contracts for exploration for polymetallic nodules, polymetallic sulphides and cobalt-rich ferromanganese crusts in the deep seabed with 29 contractors.
    • Later it was extended for five more years till 2022.
    • China, France, Germany, Japan, South Korea, Russia and also some small islands such as the Cook Islands, Kiribati have joined the race for deep-sea mining.
    • Most of the countries have tested their technologies in shallow waters and are yet to start deep-sea extraction.

    India’s preparedness

    • India’s mining site is at about a depth of 5,500 metres, where there is a high pressure and extremely low temperature.
    • We have also deployed Remotely Operated Vehicle and In-situ Soil Tester in the depth of 6,000 metres and have a thorough understanding of the mining area at the Central Indian Ocean Basin.
    • The mining machine newly developed for 6000 metres depth was able to move about 900 metres and will be deployed soon at 5,500 metres.
    • Weather conditions and the availability of ships also play a role.
    • More tests are being conducted to understand how to bring the nodules up to the surface. A riser system comprising an umbilical cable or electromechanical cable and a hose is being developed.

    What will be the environmental impact?

    • According to the IUCN, these deep remote locations can be home to unique species that have adapted themselves to conditions such as poor oxygen and sunlight, high pressure and extremely low temperatures.
    • Such mining expeditions can make them go extinct even before they are known to science.
    • The deep sea’s biodiversity and ecology remain poorly understood, making it difficult to assess the environmental impact and frame adequate guidelines.
    • Though strict guidelines have been framed, they are only exploration guidelines. A new set of exploitation guidelines are being worked out and discussions are on with the ISA.
    • Environmentalists are also worried about the sediment plumes that will be generated as the suspended particles can rise to the surface harming the filter feeders in the upper ocean layers.
    • Additional concerns have been raised about the noise and light pollution from the mining vehicles and oil spills from the operating vessels.

    Is deep-sea mining economically viable?

    • The latest estimate from the ISA says it will be commercially viable only if about three million tonnes are mined per year.
    • More studies are being carried out to understand how the technology can be scaled up and used efficiently.
  • North-East India – Security and Developmental Issues

    Brus’ resettlement in Tripura

    People erupted in violent protests against the planned resettlement of thousands of Bru migrants permanently at Kanchanpur sub-division of North Tripura.

    Try this PYQ:

     

    Q. With reference to ‘Changpa’ community of India, consider the following statement:

    1. They live mainly in the State of Uttarakhand.
    2. They rear the Pashmina goats that yield fine wool.
    3. They are kept in the category of Scheduled Tribes.

    Which of the statements given above is/are correct? (CSP 2014)

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

    Who are the Brus?

    • Reangs or Brus are the second largest ethnic group in Mizoram.
    • Their exodus in 1997 was spurred by violent clashes in Mamith subdivision, a Reang-dominated area when they demanded the creation of an autonomous council that was vehemently opposed by Mizo groups.
    • Around 34,000 people were forced to live in sub-human conditions in tents in Tripura. No solution could be reached all these years.
    • These people were housed in temporary camps at Kanchanpur, in North Tripura.

    Why have there been violent protests?

    • Twenty-three years after ethnic clashes in Mizoram forced 37,000 people of the Bru (or Reang) community to flee their homes to neighbouring Tripura.
    • The news was not welcomed by the Bengali and Mizo communities in Tripura.
    • They fear a demographic imbalance, which would exert pressure on local resources and potentially lead to law and order problems.

    Also read

    [Burning Issue] Bru– Reang Repatriation Agreement

  • Punjab’s claim over Chandigarh

    Earlier this month, Haryana Dy. CM said it would be better if both Haryana and Punjab agreed on Chandigarh as a Union Territory and make their independent capitals and Benches of High Courts.

    Try answering this

    Q.The linguistic re-organization of Indian states in the post-Independence period has prevented its balkanization, unlike our neighbourhood. Comment.

    Why was Chandigarh created?

    • Chandigarh was planned to replace Lahore, the capital of erstwhile Punjab, which became part of Pakistan during the Partition.
    • In March 1948, the Government of (India’s) Punjab, in consultation with the Centre, approved the area of the foothills of the Shivaliks as the site for the new capital.
    • From 1952 to 1966 (till Haryana was carved out of Punjab), Chandigarh remained the capital of Punjab.

    How did it become a shared capital?

    • At the time of reorganization of Punjab in 1966, the city assumed the unique distinction of being the capital of both Punjab and Haryana.
    • Even as it was declared a union territory and was placed under the direct control of the Centre.
    • The properties in Chandigarh were to be divided into 60:40 ratio in favour of Punjab.

    Punjab’s claim

    • The-then PM Indira Gandhi had announced that Haryana, in due course, would have its own capital and Chandigarh would go to Punjab.
    • As per documents submitted in the Lok Sabha, the Centre had even issued a formal communication is this regard on January 29, 1970, almost three years after Haryana came into being.
    • Again, in 1985, under the Rajiv-Longowal accord, Chandigarh was to be handed over to Punjab on January 26, 1986, but the Rajiv Gandhi government withdrew at the last minute.

    Haryana’s counter-claim

    • As per the 1970 documents, the Centre had considered various alternatives for settling the matter, including dividing the city.
    • But that wasn’t feasible since Chandigarh was built as a planned city to serve as the capital of one state.
    • Haryana was told to use the office and residential accommodation in Chandigarh only for five years till it shifts to its own new capital.
    • The Centre had offered Rs 10 crore grant to Haryana and an equal amount of loan for setting up the new capital.
    • In 2018, Haryana CM suggested setting up a special body for the development of Chandigarh, but the Punjab CM rejected it, saying the city “indisputably belonged to Punjab”.
  • New Species of Plants and Animals Discovered

    Species in news: Meghalaya’s Glowing Mushrooms

    A mushroom documentation project in the forests of Northeast India has discovered a bioluminescent — or light-emitting — variety of mushroom.

    Try this PYQ:

    Q.Lichens, which are capable of initiating ecological succession even on a bare rock, are actually a symbiotic association of:

    (a) Algae and bacteria

    (b) Algae and fungi

    (c) Bacteria and fungi

    (d) Fungi and mosses

    Roridomyces phyllostachydis

    • The new species was first sighted near a stream in Meghalaya’s Mawlynnong in East Khasi Hills district and later at Krang Shuri in West Jaintia Hills district.
    • It is now one among the 97 known species of bioluminescent fungi in the world.

    Bioluminescence in fungi

    • Bioluminescence is the property of a living organism to produce and emit light.
    • Bioluminescent organisms are usually found in ocean environments, but they are also found in terrestrial environments.
    • The colour of the light emitted by the organism depends on its chemical properties.
    • In the case of fungi, the luminescence comes from the enzyme, luciferase.
    • The green light emits when luciferans is catalysed by the enzyme luciferase, in the presence of oxygen.
  • International Space Agencies – Missions and Discoveries

    Sentinel-6 Satellite

    The Copernicus Sentinel-6 Michael Freilich satellite, designed to monitor oceans, was launched from the in California.

    Try this MCQ:

    The Jason Continuity of Service (Jason-CS) Mission recently seen in news is aimed at observing:

    (a)Microgravity changes

    (b)Sea level rise

    (c)Cosmic radiation

    (d)Space debris

    Sentinel-6 Satellite

    • This is a part of the next mission dedicated to measuring changes in the global sea level.
    • It has been named after Dr Michael Freilich, who was the Director of NASA’s Earth Science Division from 2006-2019 and passed away in August this year.

    What is the mission?

    • The mission, called the Jason Continuity of Service (Jason-CS) mission, is designed to measure the height of the ocean, which is a key component in understanding how the Earth’s climate is changing.
    • The spacecraft consists of two satellites, the other, called Sentinel-6B, to be launched in 2025.
    • It has been developed jointly by the European Space Agency (ESA), NASA, and France’s National Centre for Space Studies (CNES).

    What will the satellite do?

    • The satellite will ensure the continuity of sea-level observations into the fourth decade and will provide measurements of global sea-level rise.
    • Since 1992, high-precision satellite altimeters have helped scientists understand how the ocean stores and distributes heat, water and carbon in the climate system.
    • Essentially, the satellite will send pulses to the Earth’s surface and measure how long they take to return to it, which will help scientists measure the sea surface height.
    • It will also measure water vapour along this path and find its position using GPS and ground-based lasers.

    Significance of the mission

    • As per NASA, it is possible to observe the height of the oceans on a global scale and monitor critical changes in ocean currents and heat storage only from space.
    • Data from satellites such as Sentinel-6 help scientists foresee the effects of the changing oceans on the climate.
    • Further, in order to measure and track changes in the oceanic heat budget, scientists need to know the ocean currents and heat storage of the oceans, which can be determined from the height of the sea surface.
  • Indian Navy Updates

    Exercise SITMEX-20

    The second edition of the India, Thailand and Singapore trilateral naval exercise SITMEX-20 has concluded in the Andaman Sea.

    Exercise SITMEX-20

    • The SITMEX series of exercises are conducted to enhance mutual inter-operability and imbibing best practices between IN, Republic of Singapore Navy (RSN) and Royal Thai Navy (RTN).
    • The first edition of SITMEX, hosted by Indian Navy, was conducted off Port Blair in September 2019.
    • The 2020 edition of the exercise is being hosted by RSN.
    • The maritime drill witnessed a variety of exercises including naval manoeuvres, surface warfare exercises and weapon firings.
    • Besides improving inter-operability, SITMEX series of exercise also aims to strengthen mutual confidence and develop common understanding and procedures towards enhancing the overall maritime security in the region.
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Sustaining India’s Growth Momentum

    The article highlights the factors that explain that India’s economic recovery is broad-based and sustainable in nature.

    Revising India’s GDP forecast

    • With major banks, investor advisory groups, and credit rating agencies revising their GDP forecasts for the next financial year while lowering estimates of economic contraction for this fiscal, surely the bounce back is well on track.
    • Some of the earlier assessments were too pessimistic and assumed a gradual pace of economic normalisation.
    • Thus, a reassessment was given but nevertheless welcome.

    Many continue to challenge conventional belief regarding India’s economic recovery being broad-based and sustainable in nature. It is important that we look at underlying data and relate it with steps undertaken by the government with the sole objective of reviving India’s economy.

    1) Employment figures

    •  Economic activity will see a faster revival than employment figures as labour markets tend to lag.
    • This is because most firms face costs associated with hiring and firing and they prefer to adjust the working hours before adjusting employment numbers.
    • Trends labour market does indicate prospects of a cyclical recovery which will lead to jobs being added at a faster pace than what was originally estimated.
    • Critically, the new scheme subsiding part of the EPFO contribution for the unskilled workers will benefit enormously which will then have spill-over effects.

    2) Normalisation driven by rural economy

    • The bulk of the normalisation of economic activity was driven by the rural economy which eventually benefited the rest of the economy.
    • Rural growth has gained momentum and definitely augurs well for the Indian economy as it gets one of the engines firing.
    • The strong push by the government towards financing construction of assets has a significant impact.

    3) Avoiding excessive and inefficient use of public funds

    • The design of the aid by the government is similar in terms of its size to programmes announced by other emerging markets.
    • However, the choice of instruments is along the lines those deployed by developed countries.
    • The government has refrained from excessive and inefficient use of public funds by restricting expenditures to temporary fiscal commitments.
    • This is important as our 2008 response had a lot of permanent fiscal expenditures which led to a systematic deterioration of our macroeconomic fundamentals.
    • The government has taken undertaken a sizable fiscal expansion combining automatic stabilizers, cash transfers, bank guarantees, expansion of expenditure under various programs such as MGNREGA, Food Security Act and Urban Affordable Housing Measures.
    • The fiscal component under each of these policies can be easily reversed making it possible for India to revert to its fiscal consolidation path a lot sooner.

    4) Structural reforms as a part of its economic response package

    • These reforms are geared at unshackling the productivity potential in areas such as APMCs,  labour markets, other reforms that allow for greater private role within the economy in critical areas such as coal, space technology etc.
    • These moves and their productivity gains will help India improve its potential growth rate.
    • This means that India should be better equipped at sustaining a high-growth rate of above 7 per cent due to the productivity gains that will be an outcome of the proposed reforms.
    • This will further help a faster reduction in fiscal deficit as a percentage of GDP and our public debt to GDP figures.

    Conclusion

    Strong macroeconomic fundamentals are necessary for sustained economic growth and the government has focused on a response package which prioritises sustainability of growth rather than having a fast yet unsustainable economic recovery from the crisis.

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

    Analysing India’s economic growth

    The article analyses India’s economic trajectory after independence and divides it into five phases. India’s progress is also compared with Pakistan’s as both countries have had much in common.

    What drives economic growth

    • Examining the experiences of different countries to analysing the growth may seem a promising approach.
    • However, generalising from specific experiences can be misleading since ground conditions vary hugely across countries.
    • There are two ways to avoid the pitfalls of generalising from specific cases.
    • 1) The first is to examine the same country over time to look for changes in outcomes at specific points in time.
    • 2) A second approach is to compare countries with shared history, culture and geography.
    • If there are stark differences in outcomes between them, then there may be some policy lessons to be drawn.

    The Indian subcontinent provides lessons from both approaches. The 73 years of post-Independence India has generated a lot of evidence across different political-economic regimes. This period has also provided us with the contrasting experiences of India and Pakistan, two countries that share history, geography and socio-cultural mores.

    5 phases of India’s economic progress in 73 years: first approach

    • 1) The first phase was the period 1950-65. This was the Nehruvian period of state-led industrialisation.
    • Starting in 1950 annual per person GDP growth averaged 2 per cent during this period.
    • This translated to aggregate annual GDP growth of around 4 per cent since the population was growing at close to 2 per cent.
    • 2) The second phase of post-Independence India was during 1965-84.
    • This period was an unmitigated economic disaster with negative per capita growth.
    • The phase was marked with increasing state control of the economy, nationalisation of industry, closing of the economy to trade and a systematic weakening of institutions.
    • 3) The third phase is 1984-91 when the government ushered in the first round of economic reforms by liberalising capital goods imports as well as starting industrial de-licensing.
    • These reforms were rewarded by a growth take-off. India’s annual per capita GDP growth averaged 3.1 per cent while aggregate GDP grew at 5.2 per cent during 1984-91.
    • 4) The period 1991-2004 is typically classified as the liberalisation phase.
    • The reform effort was reflected in the 4.9 per cent annual per capita GDP growth during 1991-2004.
    • 5) India embarked on a distinctive phase of faster growth post-2004 on the back of large investments in infrastructure.
    • Per person GDP growth in the period 2004-2015 averaged 7.7 per cent.
    • The corresponding aggregate GDP growth averaged 9 per cent.
    • This came at a cost, as a number of these infrastructure projects later caused problems in the banking sector on account of burgeoning NPAs, a problem that continues till today.

    Comparison with Pakistan

    • In 1950, Pakistan’s per person GDP was almost 50 per cent greater than India that year.
    • Due to political uncertainty, Pakistan stagnated throughout the 1950s while a politically stable India grew.
    • As a result, by 1960, India had almost caught up with Pakistan in per capita GDP terms.
    • Unfortunately, from 1964, India went into two decades of economic stagnation while Pakistan opened up to foreign capital.
    • By 1984, Pakistan’s per capita income was more than double that of India’s.
    • Pakistan’s slowdown began in the 1980s.
    • This period coincided with the reforms in India.
    • Nevertheless, it wasn’t till as recently as 2010 that India’s per capita GDP finally overtook Pakistan.

    4 takeaways

    •  First, openness to trade and private enterprise usually has positive effects on growth.
    • Second, rapacious and exploitative democratic systems do not necessarily promote growth. Pakistan in the 1950s, 1990 and post-2010 is a good example.
    • Third, the socio-economic environment surrounding religious fundamentalism may be inimical to growth.
    • Fourth, degradation of institutions that regulate, arbitrate and enforce laws can be costly.

    Conclusion

    India’s growth when analysed from both the perspective offers valuable lessons for India and these lessons must guide India’s future economic trajectory.

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

    India’s no to RCEP could still be a no

    The article examines the significance of the RCEP and India’s concerns over its provision. 

    Significance of RCEP

    • Last week, 15 East Asian countries signed the Regional Comprehensive Economic Partnership (RCEP), the largest free trade agreement (FTA) ever.
    • In 2019, RCEP members accounted for about 30% of world output.
    • More importantly, about 44% of their total trade was intra-RCEP, which is a major incentive for the members of this agreement.
    • The deal could contribute to the strengthening of the regional value chains.

    Comparing RCEP with Trans-Pacific Partnership (TPP)

    • The TPP included several regulatory issues including labour and environmental standards and “anti-corruption”.
    • All of these issues could raise regulatory barriers and severely impede trade flows.
    • In contrast, RCEP includes traditional market access issues, following the template provided by the World Trade Organization (WTO).
    • RCEP also includes issues like electronic commerce, investment facilitation that are currently being discussed by WTO members to “reform the multilateral trading system”.

    Would RCEP be able to realise trade and investment liberalisation?

    • In case of trade in goods, RCEP members have taken big strides towards lowering their tariffs.
    • However, commitments made by RCEP members for services trade liberalisation do look shallow in terms of the coverage of the sectors.
    • Movement of natural persons, an area in which India had had considerable interest, is considerably restricted.
    • The areas of investment and electronic commerce, in both of which India had expressed its reservations on the template adopted during RCEP negotiations, the outcomes are varied.
    • The text on investment rules shows that it is a work-in-progress.
    • The rules on dispute settlement procedures are yet to be written in.

    Will India’s concerns get addressed in near future?

    • The answer seems to be unambiguously in the negative on two counts.
    • 1) Two of the concerns India had raised, namely,  the deep cuts in tariffs on imports from China, and provisions relating to the investment chapter, have become even more significant over the past several months.
    • 2) India’s Atmanirbhar Bharat Abhiyan is primarily focused on strengthening domestic value chains, while RCEP, like any other FTA is solely focused on promoting regional value chains.

    Consider the question “What were India’s concerns about RCEP that resulted in India not signing it? ” 

    Conclusion

    This suggests that the prospects of India joining the RCEP in the near future appears bleak.

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