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  • Steel Industry – Current challenges, National Steel Policy 2017, etc

    How friendly government policies can boost Indian steel industry

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

    The steel industry forms the backbone of the economy. This article highlights the difficulties of the industry magnified the pandemic. Ans suggest ways to revive demand.

    BAT could help

    • Introduction of a Border Adjustment Tax, known as BAT could help India’s steel industry.
    • Many countries use BAT to protect local steel manufacturers.
    • With economic pain unleashed by the pandemic and threat posed by Chinese state-subsidised steel imports, India hardly affords not to BAT.
    • BAT would create a level playing field.

    Why Indian steel industry is non-competitive

    • Indian steel manufacturers bear multiple local taxes – electricity and cross-subsidy duties, clean energy cess and royalties on ore and there are more.
    • These taxes make up 12% of the price of steel.
    • In rival markets, these levies either do not exist or are comparatively lower.
    • So Indian steel is non-competitive even before it leaves our plants.

    Impact of Covid

    • Impact of Covid on India’s biggest steel mills, which make up 65% of the country’s annual output of about 110 MT, was calamitous.
    • During the pandemic, the mills’ massive blast furnaces continued to burn.
    • Closure and reopening of furnaces can take up to 12 weeks; the process is complex, and maintenance costs are high.
    • So, the furnaces were burning during the lockdown.
    • India’s mills have continued to bear high fixed costs: firing furnaces but without making much steel.
    • Because of this, smaller mills, which account for about a third of national output, lack the strengths to survive a trough, and many have capitulated.

    Significance of Steel Industry

    • Steel is front and centre in India’s recovery.
    • The industry rests on mutual support – investment is made by entrepreneurs, the government offers supportive policies.
    • Government will lend weight to India’s competitive and comparative advantages, especially in manufacturing, in a post covid-19 economic order.
    • Indian steel’s guiding light is a steel ministry vision of 300MT of capacity by 2030, currently at about 138 MT.
    • The pandemic will put pressure on this target.

    Short term hurdles faced by Steel industry

    • Government capital expenditure is diverted to public health.
    • Real estate builders have an interest in large scale construction.
    • Car manufacturing will not see upturn until the second half of the year.
    • The pandemic has also hurt demand for capital utilisation, weighing heavily on capex.

    How the demand can be improved

    • Steel needs more infrastructure projects. Also, the fillip would be for the government to pay on time. Expedite the work.
    • An initiative to consign old cars to the scrap heap would significantly lift demand for steel to build replacement cars.
    • Improving the logistics chain would help transport finished goods and materials more quickly and less expensively.
    • Make steel the material of choice in the construction of flyovers, roads bridges and crash barriers, improving their safety, durability and, as a result, their life-cycle cost.
    • Indian mills possess world-class infrastructure and capacities and have integrated backwards by acquiring mining rights, partly to mitigate costs. As mentioned, one is high taxes on input materials such as energy.

    Consider the question “Examine the issues Indian steel industry faces. Suggest the ways to make it more competitive.”

    Conclusion

    A revived economy means a revived steel industry. The government should provide the wider and deeper support to the government to bring this vital sector back on the track and make help achieve global competitiveness.

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  • Finance Commission – Issues related to devolution of resources

    For the sake of sound fiscal federalism

    op-ed snap | Polity | Mains Paper 2: Federalism

    Faultlines in the Centre-State fiscal relations have widened due to Covid. This article examines how States are not getting what they should as per the 14th Finance Commission report.

    Centre-state tussle

    • The tussle for the rights of States has been focused on Article 356.
    • Partial behaviour by the Governors, regional party governments were politically destabilised.
    • Little was done to implement the report of  Justice R.S. Sarkaria Commission on Centre-State relations.
    • The new faultline in the Centre-State relation could be over the way report of 14th Finance Commission is being implemented.
    • This began well before COVID-19, but the pandemic and its economic disruption have brought things to an edge.

    Issues over the implementation of 14th Finance Commission report

    • The 14th Finance Commission report in 2015 promised devolution of more finances to the States.
    • As part of the process, States would have new responsibilities, especially in the social sector.
    •  The Goods and Services Tax (GST) regime was also justified as a grand bargain that would eventually leave all States better off.
    • In reality, tax devolution to States has been consistently below 14th Finance Commission projections.
    • One reason for this has been the economic slowdown, and lower-than-expected GST collections.
    • The shortfall in GST collection for 2018-2019 was 22% when compared to projections.
    • Payments to the States have been delayed as well.
    • There is a ₹6.84 lakh crore gap between what the 14th Finance Commission promised to States and what they have received.
    • States undertook programmes and projects spending 46% more than the Central Government; today the figure is 64%.
    • Despite spending less than the states the Centre’s fiscal deficit exceeds the consolidated State deficit by 14%.

    Need to revisit the FRBM provisions

    • Due to pandemic, the fiscal deficit for States, collectively, is inevitably going to breach the projection of 2.04%.
    • As per provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, the GSDP can actually accommodate a fiscal deficit of 3%.
    • Now, post-pandemic, this limit will be crossed.
    • The FRBM has an “escape clause” that allows for a one-time relaxation of the fiscal deficit threshold upto 0.5% in a time of exigency.
    • The escape clause has been utilised by the Centre but it has proven woefully insufficient in addressing the current crisis.
    • Fiscal policymakers and technocrats agree that the rigidity of the FRBM has to be revisited.
    • It should allow for greater flexibility and consultation as to when and how the “escape clause” can be applied.
    • The Centre has gone in for subjective interpretation, imposing conditions that are outside the scope of the FRBM.

    Consider the question “Fiscal tensions have emerged as  a new front in the Centre-State relations. Suggest the steps the Centre should take to address it.”

    Conclusion

    Centre government needs to be more considerate of the financial woes of the State and try to deliver on the recommendations of the 14th Finance Commission report.

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

    Do we need Fiscal Council

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Why there is a need for Fiscal Council?

    • With a complex polity and manifold development challenges, India need institutional mechanisms for prudent fiscal practices.
    • An independent fiscal council can bring about much needed transparency and accountability in fiscal processes across the federal polity.
    • International experience suggests that a fiscal council improves the quality of debate on public finance, and that, in turn, helps build public opinion favourable to fiscal discipline.
    • In a globalised world of enormous capital flows, market volatility across the world and especially in emerging markets, in response to monetary policy changes in major economies, and geopolitical tensions that ebb and flow, causing currencies and commodity prices to swing, countries like India need macroeconomic management as an active function round the year.
    • Also, it is supposed to report to the parliament regarding the practicability of government forecasts in the budget. This will make executive more responsible in budget preparation.
    • For the last eight years the projections of the government has fallen short by a consistent 10 percent, leading to fund cuts in the middle of the year. Thus, an independent Fiscal council would evaluate budget proposals and forecasts using objective criteria.
    • This would also boost confidence in global credit rating agencies about government’s fiscal commitment.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Quorum not needed for routine standing committee meetings

    | Polity | Mains Paper 2: Parliament & State Legislatures

    The opposition parties in the Rajya Sabha has contradicted the holding the virtual meetings of standing committees to ensure quorum during deliberations.

    Try this question from CSP 2018:

    Q.With reference to the Parliament of India which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub rules, bylaws, etc. conferred by the Constitution or delegated by the Parliament is being properly exercised by the Executive within the scope of such delegation?

    (a) Committee on Government Assurances

    (b) Committee on Subordinate Legislation

    (c) Rules Committee

    (d) Business Advisory Committee

    What is Quorum?

    • A quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that group.
    • The requirement for a quorum is protection against totally unrepresentative action in the name of the body by an unduly small number of persons.
    • Article 100 (3) of the Constitution of India stipulates that at least 10% of the total number of members of the House must be present to constitute the quorum to constitute a meeting of either House of Parliament.
    • Article 189 (3) and (4) provides for similar provisions for State Legislatures.
    • For example, if the House has a total membership of 500, at least 50 members must be present for the House to proceed with its business.

    What did RS Secretariat say over the requirement of quorum?

    • Parliamentarian these days are unable to travel to Delhi for obvious COVID reasons.
    • The Rajya Sabha secretariat has said that quorum was essential only when the committees are making decisions or adopting reports and not during routine deliberations.

    Back2Basics: What are Standing Committees?

    • Standing Committee is a committee consisting of Members of Parliament.
    • It is a permanent and regular committee which is constituted from time to time according to the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business.
    • The work done by the Indian Parliament is not only voluminous but also of a complex nature, hence a good deal of its work is carried out in these Parliamentary Committees.
    • Standing Committees are of the following kinds :
    1. Financial Standing Committees (FSC)
    2. Department Related Standing Committees (DRSC)
    3. Others Standing Committees (OSC)

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  • International Space Agencies – Missions and Discoveries

    Carbon enrichment of the Universe

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

    A recent study has provided new insights on the origins of the carbon in our galaxy.

    Try this question from CSP 2016:

    Q.Consider the following:

    1. Photosynthesis
    2. Respiration
    3. Decay of organic matter
    4. Volcanic action

    Which of the above add carbon dioxide to the carbon cycle on earth?

    (a) 1 and 4 only

    (b) 2 and 3 only

    (c) 2, 3 and 4 only

    (d) 1, 2, 3 and 4

    Why study Carbon?

    • Carbon is essential for life: It is the simple building block of all the complex organic molecules that organisms need.
    • It is known that all the carbon in the Milky Way came from dying stars that ejected the element into their surroundings.
    • What has remained debated, however, is what kind of stars made the major contribution.
    • The study shows the analysis of white dwarfs — the dense remnants of a star after its death.

    How does carbon come from stars?

    • Most stars — except the most massive ones — are doomed to turn into white dwarfs.
    • When the massive ones die, they go with a spectacular bang known as the supernova.
    • Both low-mass and massive stars eject their ashes into the surroundings before they end their lives.
    • And these ashes contain many different chemical elements, including carbon.

    How is it synthesized?

    • Both in low-mass stars and in massive stars carbon is synthesized in their deep and hot interiors through the triple-alpha reaction that is the fusion of three helium nuclei.
    • In low-mass stars, the newly synthesized carbon is transported to the surface [from the interiors] via gigantic bubbles of gas and from there injected into the cosmos through stellar winds.
    • Massive stars enrich the interstellar medium with carbon mostly before the supernova explosion, when they also experience powerful stellar winds.

    Findings of the news research

    • It was earlier debated that whether the carbon in the Milky Way originated from low-mass stars before they became white dwarfs or from the winds of massive stars before they exploded as supernovae.
    • The new research suggests that white dwarfs may shed more light on carbon’s origin in the Milky Way.
    • The researchers measured the masses of the white dwarfs, derived their masses at birth, and from there calculated the “initial-final mass relation”.
    • The IFMR is a key astrophysical measure that integrates information of the entire life cycles of stars.
    • They found that the relationship bucked a trend — that the more massive the star at birth, the more massive the white dwarf left at its death.
    • So far, stars born roughly 1.5 billion years ago in our galaxy were thought to have produced white dwarfs about 60-65% the mass of our Sun.

    What explains this?

    • From an analysis of the initial-final mass relation around the little kink, the researchers drew their conclusions about the size range for the stars that contributed carbon to the Milky Way.
    • Stars more massive than 2 solar masses, too, contributed to the galactic enrichment of carbon.
    • Stars less massive than 1.65 solar masses did not. In other words 1.65-Msun [1.65 times the mass of the Sun] represents the minimum mass for a star to spread its carbon-rich ashes upon death.

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  • Skilling India – Skill India Mission,PMKVY, NSDC, etc.

    [pib] ASEEM Portal

    PIB | Governance | Mains Paper 2: Government Scheme/Policies

    Union Ministry of Skill Development and Entrepreneurship has launched Aatmanirbhar Skilled Employee-Employer Mapping (ASEEM) portal to help skilled people find sustainable livelihood opportunities.

    There are various web/portals/apps with peculiar names such as YUKTI, DISHA, SWAYAM etc. Their core purpose is similar with slight differences. Pen them down on a separate sheet.

    ASEEM Portal

    • ASEEM refers to all the data, trends and analytics which describe the workforce market and map demand of skilled workforce to supply.
    • It is developed and managed by National Skill Development Corporation (NSDC) in collaboration with Bengaluru-based Company named Betterplace.
    • It is an AI-based portal which will map details of workers based on regions and local industry demands and will bridge the demand-supply gap of skilled workforce across sectors.
    • It will provide employers with a platform to assess the availability of a skilled workforce and formulate their hiring plans.
    • It will also provide real-time granular information by identifying relevant skilling requirements and employment prospects.

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  • Tribes in News

    Rabari, Bharvad and Charan Tribes of Gujarat

    Prelims Only | Governance | Mains Paper 1: Population & Associated Issues

    The Gujarat government will constitute a commission to identify the members of Rabari, Bharvad and Charan communities who are eligible to get the benefits of Schedule Tribe (ST) status.

    Try this question from CSP 2017:

    Q.Every year, a monthlong ecologically important campaign/festival is held during which certain communities/ tribes plant saplings of fruit-bearing trees. Which of the following are such communities/ tribes?

    (a) Bhutia and Lepcha

    (b) Gond and Korku

    (c) lrula and Toda

    (d) Sahariya and Agariya

    About the Tribes

    (1) Rabari

    • The Rabari, also called the Rewari are an indigenous tribal caste of nomadic cattle and camel herders and shepherds that live throughout northwest India, primarily in the states of Gujarat, Punjab and Rajasthan.
    • The word “Rabari” translates as “outsiders”, a fair description of their primary occupation and status within Indian society.
    • They speak ‘Bhopa’ which is a mixture of Gujarati, Kachchi, Marwari words and Pharasi (Persian) and use Gujarati script.
    • The Rabari are known for their distinctive art, particularly the mirrored and whitewashed mud sculpture-work that adorns their homes and villages.
    • Rabari women are responsible for this artwork and also traditionally spin the wool from their sheep and goats, and give it to local weavers to make their woollen skirts, veils, blankets and turbans.

    (2) Bharvad

    • The Bharwad are tribals primarily engaged in herding livestock.
    • The Bharwad name may derive from the Gujarati word badawad, constructed from bada (sheep) and wada (a compound or enclosure).
    • The Bharwads have numerous subgroups known as ataks or guls (clans) whose main purpose is to determine eligibility for marriage.
    • Constrained exogamy is practised between clans.

    (3) Charan

    • The Charan, also called Gadhvi, is a small tribe in Gujarat and the name Charan is derived from the word ‘Char’ which means grazing.
    • Members of the caste are considered to be divine by a large section of society.
    • Women of the caste are adored as mother goddesses by other major communities of this region.

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  • Rohingya Conflict

    In news: Bhashan Char Island

    Prelims Only | International Relations | Mains Paper 2: Important International Institutions

    Bangladesh has announced that it will not move the Rohingyas settled on the Bhashan char island amid Corona pandemic.

    Try this question from CSP 2018:

    Q.Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’?

    (a) Andaman and Nicobar

    (b) Nicobar and Sumatra

    (c) Maldives and Lakshadweep

    (d) Sumatra and Java

    Bhashan Char Island

    • Bhasan Char also known as Char Piya, is an island in Hatiya, Bangladesh.
    • The island was formed with Himalayan silt in 2006 spanning 40 square kilometres.
    • It is underwater from June to September annually because of the monsoon, and it has no flood fences.
    • In June 2015, the Bangladeshi government suggested resettling Rohingya refugees on the island under its Ashrayan Project.
    • The proposal was characterized by the UN Refugee Agency as “logistically challenging”.

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  • Foreign Policy Watch: India-China

    Broader strategic challenge of dealing with China

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

    • Identifying the nature of the threat posed by China is important to formulate a response. This article discusses the plan of action on the diplomatic, strategic and economic front to deal with Chinese aggression.

    Economic angle of China’s expansionism

    • The Chinese growth model needed to find subservient emerging markets.
    • In these markets, China can park huge debts and make investments to keep feeding China’s high growth rates.
    • Friendly foreign debt-investment markets were needed to compensate for over-investment at home.
    • The Belt and Road Initiative was rolled out as a meeting point for China’s geo-strategic and geo-economic interests.
    • China has expanded its global footprint by signing on about 100 countries to the BRI.
    • China has made aggressive moves on most of its non-submissive neighbours in the South China Sea.
    • China has also made moves against its traditional rivals like Japan and Taiwan to independent-minded nations like South Korea and Australia.
    • China sees itself as a global power whose time has come.

    India needs to play clearer role

    • Rise of China is shaking up global alignments and shaping new world order.
    • The Trump administration is increasingly being criticised for not providing global leadership.
    • India could afford to be largely non-aligned during the 20th century Cold War.
    • Our size and economic momentum necessitate that we play a clearer role in the Cold War’s 21st-century sequel.
    • India’s foreign policy has lacked a clear vision about China.
    • India has been deepening our strategic relationship with the US but without wanting to alarm China.

    India’s relation with neighbours

    • India’s relations with other neighbouring nations have also become a cause of concern.
    • Pakistan has practically become a minion state for the Chinese – the $62-billion CPEC is a case in the point.
    • Nepal is no longer on our list of all-weather friends.
    • Chinese influence is growing in Sri Lanka and Bangladesh — both signatories to the BRI.
    • And just last week, Beijing, sent another appallingly stern message to our loyal friend, Bhutan, by making ridiculous territorial claims.

    What should be India’s plan of action

    • Dealing with China will require conviction and exercising a range of military, diplomatic and economic options.
    • One forum we need to build on and provide leadership to is the Quadrilateral Security Dialogue.
    •  India should now propose the expansion of the Quad’s scope with a possible exploration of a collective defence architecture like NATO.
    • The membership of the Quad should be expanded to include Vietnam, South Korea, New Zealand, and Malaysia.
    • On the economic front, India must welcome the US proposal to expand G7 to include India, Russia, Australia and South Korea without China as a member.
    • Next area of focus should be strengthening ties with our neighbourhood.
    • Effort must be made to regain the relationship with Russia.

    Conclusion

    China must be made to choose: Is it willing to push the equally proud, equally numerous, equally historical and glorious civilisation to the south in this long-term direction for a few square kilometres of territory and a round of chest-thumping?

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  • Electoral Reforms In India

    Judiciary and criminalisation in politics

    op-ed snap | Polity | Mains Paper 2: Representation Of People’s Act

    This article discusses the issue of criminalisation in politics and the reasons for its persistence despite several judgements by the Supreme Courts to deal with the issue.

    The Feb 2020 SC order

    • In a February 2020 judgement the Supreme Court has asked the political parties to state the reasons for the selection of candidates.
    • The Court also asked to specify as also as to why other individuals without criminal antecedents could not be selected as candidates.
    • If a political party fails to comply, it would be “… in contempt of this Court’s orders/directions.”
    • The political party and its leadership would for the first time have to publicly own up to criminalisation of politics.
    • The judgment notes that “ in 2019 as many as 43% of MPs had criminal cases pending against them”.
    •  India is the only democratic country with a free press where we find a problem of this dimension.

    What did the earlier orders require?

    • (a) each candidate shall submit a sworn affidavit giving financial details and criminal cases.
    • (b) each candidate shall inform the political party in writing of criminal cases against him or her.
    • (c) the party shall put up on its website and on social media as well as publish in newspapers the names and details of such candidates.

    Why the problem persists

    • Survey after survey show that people around the country are unhappy with the quality of governance.
    • Given limited choices, they vote as best as they can.
    • Meanwhile, electoral bonds bring secrecy back into political funding.
    • Several laws and court judgments have not helped much, as the data show.
    • There lack of enforcement of laws and judgments.
    • It is also not clear what penalty would be imposed if the recent orders are not followed.

    Way forward

    •  Monitoring the affidavits of candidates can help in compliance.
    • Working with the EC to ensure that information is promptly available on their websites.
    • Widely circulating this information to voters using all the social media tools available.
    • Monitoring the compliance with the Supreme Court judgment to see if details of tainted candidates are promptly put up on their websites, and on their social media handles, along with proper reasons for giving them ticket.
    • Voters also need to be vigilant about misuse of money, gifts and other inducements during elections.
    • The waters will be muddied with fake news, trolling, and fanciful claims, concerted efforts to tackle the menace of fake news are required.

    Consider the question “Despite several judgements from the Supreme Court the issue of criminalisation in politics still persists. Examine the reasons for the persistence of the issues. Suggest the measures to deal with the issues.”

    Conclusion

    we may not see dramatic changes in the quality of candidates. Campaigns may continue to be more and more personal and even abusive. But all these steps are required, however insignificant they may seem.

    Original link

    https://www.thehindu.com/opinion/lead/owning-up-to-criminalisation-in-politics/article32035186.ece

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