Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kathak
Mains level: NA
Kathak legend Pandit Birju Maharaj has recently passed away.
About Kathak
- Kathak is one of the eight major forms of Indian classical dance.
- The origin of Kathak is traditionally attributed to the traveling bards in of ancient northern India known as Kathakars or storytellers.
- The term Kathak is derived from the Vedic Sanskrit word Katha which means “story”, and Kathakar which means “the one who tells a story”, or “to do with stories”.
- Wandering Kathakars communicated stories from the great epics and ancient mythology through dance, songs and music.
Its origin
- Kathak dancers tell various stories through their hand movements and extensive footwork, their body movements and flexibility but most importantly through their facial expressions.
- It evolved during the Bhakti movement, particularly by incorporating the childhood and stories of the Hindu god Krishna, as well as independently in the courts of north Indian kingdoms.
- Kathak is unique in having both Hindu and Muslim gharanas and cultural elements of these gharanas.
- Kathak performances include Urdu Ghazals and commonly used instruments brought during the Mughal period.
Major gharanas
- Kathak is found in three distinct forms, called “gharanas”, named after the cities where the Kathak dance tradition evolved – Jaipur, Banaras and Lucknow.
- While the Jaipur gharana focuses more on the foot movements, the Banaras and Lucknow gharanas focus more on facial expressions and graceful hand movements.
Performance details
- It involves both Nritta (pure dance) and Nritya (expressive dance).
- Stylistically, the Kathak dance form emphasizes rhythmic foot movements, adorned with small bells (Ghungroo) and the movement harmonized to the music.
- The legs and torso are generally straight, and the story is told through a developed vocabulary based on the gestures of arms and upper body movement, facial expressions, neck movements, eyes and eyebrow movement, stage movements, bends and turns.
- The main focus of the dance becomes the eyes and the foot movements.
- The eyes work as a medium of communication of the story the dancer is trying to communicate. With the eyebrows the dancer gives various facial expressions.
- A Kathak performance can be solo, duo or team. In a technical performance, the speed and energy the dancers exchange with the audience increases in multiples, that is the tempo doubles or quadruples.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAATSA
Mains level: Paper 2- Challenges facing India in 2022
Context
Risks in 2022 could be both domestic and geopolitical, with many precepts that the world has been accustomed to being at risk. Democracy itself could face serious headwinds this year.
Challenges to democracy
- The world has recently seen the rise of authoritarian rulers in many countries.
- What is worrisome is that democratic tenets which have been under attack in recent years appear set to face more onslaughts this year.
- The United States, which was widely viewed as a major bulwark for democracy, appears to have developed certain pathological infirmities.
Geopolitical challenges and risks
[1] Disruption by China
- The role of China is possibly the most disrupting one, given the challenge it poses to the existing international order.
- Militarily, China is openly challenging U.S. supremacy in many areas, including ‘state-of-the-art weaponry’ such as hyper-sonic technology.
- China is now threatening Taiwan, which could well become one of the flashpoints of conflict in 2022.
- The dip in China’s economic profile in the past year and more could also lead to new tensions in the Asia-Pacific region in 2022.
[2] Russia-Ukraine conflict
- The other major risk of a war in 2022, stems from the ongoing conflict between Russia and Ukraine — the latter being backed by the U.S. and North Atlantic Treaty Organization (NATO) forces.
- During the past three decades, NATO has expanded its reach almost a 1,000 miles to the east in violation of an earlier tacit understanding.
- Russia appears determined that Ukraine should be the ‘last frontier’ and, if need be, ensure this through military force.
- The situation has grave possibilities and could result in a series of cyclical outcomes with considerable damage potential.
[3] Instability in the vast region
- Unrest in Kazakhstan: The current unrest in Kazakhstan, which till recently was one of the more stable Central Asian nations, is perhaps symptomatic of what is in store.
- Recent events in Kazakhstan demonstrates a sharper cleavage between the U.S.-led West and its principal opponents, Russia and China.
- This is not a good sign for the world already wracked by a series of coups or internecine strife as in Ethiopia, Libya and certain regions of West Asia and North Africa.
[4] Return of Taliban and security implications for India
- Shift in balance of power: Of particular significance to India is that the Taliban’s return to power in Afghanistan has led to a material shift in the balance of power in India’s periphery.
- Developments in Afghanistan have fuelled the ambitions of quite a few ‘anti-state militant groups’ across the region.
- Even in Pakistan, the Tehrik-e-Taliban Pakistan (TTP) has become energised and is enlarging its sphere of action to other parts of Asia, notably Kazakhstan.
- This will have an unsettling effect across large parts of Asia.
- New evidence suggests that on India’s eastern flank, viz. Indonesia, a resurgence of radical Islamist activities is taking place.
- The Jemaah Islamiyah has reportedly become more active in Indonesia.
[5] India’s border issue with China
- The most serious issue that India confronts today is how to deal with a China that has become more confrontational.
- India’s membership of the Quad still rankles as far as China’s psyche is concerned, and during 2022, may well result in China embarking on new adventurist actions at many more points on the Sino-Indian border compelling India to react.
- Additionally, India will need to determine how best to respond to China’s provocations.
- Strengthen military posture: India would need to strengthen its military posture, both as a means to deter China and also to convince India’s neighbours that it can stand up to China.
Challenges ahead for India
- Challenge in Central Asia: Diplomatically, in 2022, India may find itself vulnerable in dealing with the turmoils which have occurred in two areas of strategic interest to it, viz. Central Asia and West Asia.
- Challenge in West Asia: In West Asia, the challenge for India is how to manage its membership of the Second Quad (India, Israel, the United Arab Emirates and the U.S.) with the conflicting interests of different players in the region.
- Limits to balancing: There is a limit to the kind of balancing act that India can perform, whether it be with regard to buying S-400 missile systems from Russia, risking potential sanctions from Washington under Countering America’s Adversaries Through Sanctions Act (CAATSA) or manoeuvering between the Arab States, Israel, Iran and the U.S. in West Asia.
Conclusion
Facing a host of unprecedented challenges, India’s leaders and diplomats must not only take stock of the dangers that exist but also be ready on how to manage the risks that are well evident.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-Japan relations
Context
The year 2022 marks the 70th anniversary of the establishment of diplomatic relations between Japan and India.
Historical background of India-Japan relationship
- We have a long history of people-to-people exchanges that can be traced back to the sixth century.
- Buddhism was brought to Japan and, in 752.
- During Meiji Restoration in the late 19th Century — Japan needed natural resources to modernise its industry.
- Many Japanese travelled to India to purchase cotton, iron ore, etc.
- Formal relations between Japan and India began in 1952.
- After the Second World War, instead of signing the multilateral San Francisco Peace Treaty, India opted for concluding a bilateral peace treaty with Japan, considering that honour and equality should be ensured for Japan to rejoin the international community.
- But even before the establishment of diplomatic relations, the goodwill between the people of the two countries was deeply rooted through business, academic and cultural exchanges.
- After 70 years of multi-layered exchanges, the relationship between our two countries grew into a “Special Strategic and Global Partnership”.
Future possibilities
[1] As democratic countries, contribute to global peace and prosperity
- As democratic countries in Asia, India and Japan can cooperate to contribute to global peace and prosperity.
- We share political, economic and strategic interests based on the firm foundations of common values and traditions.
- We are continuing our efforts to build a rules-based free and open international order.
[2] Cooperation in security
- There are a plethora of fields that we can cooperate in security issues including cyber security, outer space and economic security.
[3] Augmenting economic relations
- For long, Japan has been the largest ODA (Official Development Assistance) donor to India.
- One of the most recent and ongoing examples of our collaboration is the Mumbai-Ahmedabad High-Speed Rail project.
- Japan is also one of the largest investors in India.
- Both countries have also promoted economic cooperation in other countries to enhance social infrastructure and connectivity.
- Our economic partnership can further strengthen the economy of the Indo-Pacific, as well as the world economy.
[4] Cultural exchange
- Cultural exchanges including literature, movies, music, sports and academics are essential for our relations, enabling a better understanding.
Consider the question “The year 2022 marks the 70th anniversary of the establishment of diplomatic relations between Japan and India. The future offers enormous possibilities for the partnership. In context of this, examine the future possibilities the two countries can explore.”
Conclusion
India-Japan ties will continue to flourish. Our long history substantiates that.
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Meiji Restoration in Japan
- In Japanese history, the political revolution in 1868 that brought about the final demise of the Tokugawa shogunate (military government)—thus ending the Edo (Tokugawa) period (1603–1867)—and, at least nominally, returned control of the country to direct imperial rule under Mutsuhito (the emperor Meiji).
- In a wider context, however, the Meiji Restoration of 1868 came to be identified with the subsequent era of major political, economic, and social change—the Meiji period (1868–1912)—that brought about the modernization and Westernization of the country.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Predatory pricing issue
Context
Consumer goods distributors in Maharashtra has been protesting against Colgate’s alleged unfair treatment of traditional distributors vis-à-vis B2B (Business-to-Business) technology companies such as Reliance’s JioMart, Udaan and others.
The disruption caused by B2B companies
- Nearly half-a-million of India’s distributors pick up goods from consumer companies such as Colgate and deliver them to 13 million small local stores located in 7,00,000 villages and towns across the country through a web of millions of traders and other intermediaries.
- Enter the new age technology B2B companies.
- They have developed technologies to connect directly to the kirana store through a mobile phone app, bypassing the intermediaries.
- They supply goods to the local store for lower prices than the charged by the distributor.
- Unable to match such prices and facing the peril of losing business, India’s distributors claim these are unfair practices and want manufacturers such as to stop supplying goods to the technology companies.
Issue of disruption caused by the pricing power and predatory pricing
- Creative destruction: New innovations disrupting an existing process and rendering incumbents futile is generally a healthy process of ‘creative destruction’, as the Austrian economist, Joseph Schumpeter, postulated.
- But this disruption in India is driven not entirely by technology innovation but also through pricing power.
- These technology companies bear the loss on the products they sell to the local store.
- Further, they offer extensive credit terms and working capital to the local stores.
- In other words, these technology companies rely not just on their mobile phone app innovation but also steep price discounting and cheaper financing to win customers.
- Evidently, these companies use the money to not only build new technologies but also to undercut competitors and steal market share.
- This practice, called predatory pricing, is illegal in most countries including India.
- These companies are supplied with funds from foreign venture capital firms, which in turn are largely funded by American pension funds and university endowments.
- The flip side is that India’s millions of distributors and intermediaries have no access to such finance.
- These small companies are cut off from the endless stream of free foreign money that gushes into new age ‘startups’ and established large corporates.
Problems created by predatory pricing
- While consumers may benefit from lower prices, the livelihoods of millions of distributors, traders and their families suffer.
- To be sure, this is not just an India problem but a global one.
- Social media companies such as Facebook give away their products for free and e-commerce companies such as Amazon sell at lower prices, benefiting consumers enormously, but also causing immense social strife and disharmony.
- But in India’s case, there is an added complexity of foreign capital flows.
- Access to this capital is only available to a tiny proportion of Indian businesses but threatens the livelihoods of millions of Indian families, as in the case of distributors, causing massive income and social disparities.
- This unequal access to capital creates leads to anti-competitive behaviour.
Consider the question “What is predatory pricing? What are the issues created by predatory pricing?”
Conclusion
To be clear, this is not a Luddite argument against e-commerce or technological innovations. The issue is about illegal predatory pricing and abuse of pricing power by startups and big corporates through preferential access to easy foreign money.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Geo-tagging
Mains level: Paper 3- Agri-reforms in Punjab
Context
It is no secret that Punjab, once the frontrunner of Indian agriculture, is struggling to retain its dynamism.
Need to diversify
- While Punjab ranked at the top of major Indian states in terms of per capita income during 1967-68 to 2002-03, it has slipped below the 13th position.
- Punjab’s agricultural growth rate, at 5.7 per cent, was more than double the country’s average of 2.3 per cent during 1971-72 to 1985-86.
- This has reversed between 2005 and 2019 with Punjab at 1.9 per cent and India at 3.7 per cent.
- Agriculture least diversified state: With almost 85 per cent of the gross cropped area under wheat and rice, agriculture is least diversified in the state.
- Mandi transactions cost about 8.5 per cent of the MSP, the highest in the country, making Punjab wheat and rice less competitive.
What explains low diversification in agriculture?
- Policies: Guaranteed MSP for wheat and paddy, backed by assured procurement, free power and highly subsidised fertilisers, has disincentivised diversification.
- Political economy: The political economy around wheat and rice is so intense that any effort to address its distortionary impact is met with fierce opposition by vested interest groups.
How to recalibrate Punjab agriculture towards higher, sustainable growth?
- Augment livestock and milk processing: While fruits and vegetables account for 7.4 per cent of the value of the output of agriculture and allied sectors, livestock accounts for 31.5 per cent and fisheries less than 1 per cent.
- The state has the highest per capita availability of milk but it can process less than 20 per cent of it.
- Promoting mega parks for value addition in fruits and vegetables, milk, and other livestock products through medium and small enterprises will strengthen its competitiveness.
- Strengthen market for seed potato: It is also a significant player in seed potato and with the right package of practices, traceability systems, and infrastructure, the market for Punjab seed potato can be strengthened.
- Scaling up alternative marketing channel: Alternative marketing channels for fruits and vegetables such as direct marketing, contract farming, and exports have been in place but these models need to be scaled up with the right ecosystem.
- Shift to demand-driven agriculture: Punjab needs to switch from supply-driven agriculture to demand-driven agriculture.
- The demand for fisheries, poultry, dairy, and fruits and vegetables is increasing way faster than the demand for wheat and rice.
- Rationalise mandi charges: Rationalising mandi charges to not more than 3 per cent will attract private sector investments in building efficient value chains.
- Rationalise subsidies: Time-bound incentives in the form of freight subsidies for exporters of high-value agri-produce, tax exemptions for the processing of perishable commodities for value chain players would be more rational than the overloaded subsidies of urea and free power.
- Use technology and start-up revolution: Punjab should leverage the start-up revolution that is unfolding in India, and use technology to ensure optimal utilisation of resources, expand markets, and augment farmers’ income.
- Geo-tagging of farms can address concerns related to long-term leasing of land that is critical for large-scale investments and enable vibrant agricultural land markets.
- Innovations in supply chain management, be it automated grain silos or state-of-art herd management will not only optimise the use of resources but also bring in traceability of farms and animals, early monitoring and prevention of disease outbreaks, and contain value chain losses.
How to manage financial resources?
- Rationalise urea subsidy: It should rationalise its fertiliser subsidy regime by moving towards cash transfers on a per hectare basis and free up fertiliser prices.
- Include urea in nutrient-based subsidy scheme: If that’s not possible, then urea should be included in the nutrient-based subsidy scheme.
- Bring soluble fertiliser under subsidy: Bring soluble fertilisers under subsidy, which will enhance fertiliser use efficiency through fertigation.
- This will also help reap environmental gains.
- Rationalise food subsidy: Food subsidy can also be rationalised through direct cash transfers replacing PDS, as Punjab is a grain surplus state.
Conclusion
Both environmental and financial sustainability concerns related to business-as-usual farming in Punjab call for a rebooting strategy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various types of trade agreements
Mains level: Free Trade Agreements
India and the United Kingdom have launched formal Free Trade Agreement (FTA) negotiations with the aim of concluding an early harvest trade agreement over the next few months.
What is a Free Trade Agreement (FTA)?
- A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
- Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
- The concept of free trade is the opposite of trade protectionism or economic isolationism.
Key benefits offered by FTA
- Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
- Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
- Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
- Fair treatment for investors: FTA provides treatment as favourably as the FTA partner country gives equal treatment for investments from the partner country.
- Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.
How many FTAs does India have?
- India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
- Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
- The discussion is going for an FTA with Australia.
- India has signed Preferential Trade Agreements such as:
- Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
- Global System of Trade Preferences (GSTP)
- India – MERCOSUR PTA etc. with South American countries
Back2Basics: Types of Trade Agreements
(1) Free Trade Agreement – discussed above
(2) Preferential Trade Agreement
- In this type of agreement, two or more partners give preferential right of entry to certain products.
- This is done by reducing duties on an agreed number of tariff lines.
- Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
- Tariff may even be reduced to zero for some products even in a PTA.
- India signed a PTA with Afghanistan.
(3) Comprehensive Economic Partnership Agreement
- Partnership agreement or cooperation agreement are more comprehensive than an FTA.
- CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
- CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
- It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
- India has signed CEPAs with South Korea and Japan.
(4) Comprehensive Economic Cooperation Agreement
- CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
- It is not as comprehensive as CEPA.
- India has signed CECA with Malaysia.
(5) Framework Agreement
- Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
- It provides for some new area of discussions and set the period for future liberalisation.
- India has previously signed framework agreements with the ASEAN, Japan etc.
(6) Early Harvest Scheme
- An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
- At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
- An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Web3
Mains level: Web and Blockchain technology
The concept of Web3, also called Web 3.0, used to describe a potential next phase of the internet, created quite a buzz in 2021.
What is Web3?
- The model, a decentralized internet to be run on blockchain technology, would be different from the versions in use, Web 1.0 and Web 2.0.
- In web3, users will have ownership stakes in platforms and applications unlike now where tech giants control the platforms.
Previous versions of Web
To understand web3, we should start with Web 1.0 and Web 2.0.
[1] Web 1
- Web 1.0 is the world wide web or the internet that was invented in 1989. It became popular from 1993.
- The internet in the Web 1.0 days was mostly static web pages where users would go to a website and then read and interact with the static information.
- Even though there were e-commerce websites in the initial days it was still a closed environment and the users themselves could not create any content or post reviews on the internet.
- Web 1.0 lasted until 1999.
[2] Web 2
- Web 2.0 started in some form in the late 1990s itself though 2004 was when most of its features were fully available. It is still the age of Web 2.0 now.
- The differentiating characteristic of Web 2.0 compared to Web 1.0 is that users can create content.
- They can interact and contribute in the form of comments, registering likes, sharing and uploading their photos or videos and perform other such activities.
- Primarily, a social media kind of interaction is the differentiating trait of Web 2.0.
What are some of the concerns?
- In Web 2.0, most of the data in the internet and the internet traffic are owned or handled by very few behemoth companies ex. Google.
- This has created issues related to data privacy, data security and abuse of such data.
- There is a sense of disappointment that the original purpose of the internet has been distorted.
- It is in this context that the buzz around Web3 is significant.
Dawn of Web3
- Gavin Wood, founder of Ethereum, a block chain technology company, used the term Web3 first in 2014 and in the past few years many others have added to the idea of Web3.
- In 2021, owing to the popularity of crypto-currency, more discussions happened on Web3.
How will Web3 address the problems of data monopoly?
Web3 will deliver decentralized and fair internet where users control their own data.
- Currently if a seller has to make a business to the buyer, both the buyer and seller need to be registered on a “shop” or “platform” like Amazon or Ebay or any such e-commerce portal.
- What this “platform” currently does is that it authenticates that the buyer and seller are genuine parties for the transaction.
- Web3 would try to remove the role of the “platform”.
- For the buyer to be authenticated, the usual proofs aided by block chain technology will be used. The same goes for the seller.
How is blockchain technology used here?
- With block chain, the time and place of the transaction are recorded permanently.
- Thus, Web3 enables peer to peer (seller to buyer) transaction by eliminating the role of the intermediary. This concept can be extended to other transactions also.
- Consider a social media application where you want to share pictures with your followers.
- It could be a broadcast operation from you aided by blockchain and you don’t need social media accounts for all the participants to be able to perform this.
Another key feature: Decentralized Autonomous Organization
- The key concepts in Web3 seen so far are peer to peer transaction and block chain.
- The spirit of Web3 is Decentralized Autonomous Organization (DAO).
- DAO is all about the business rules and governing rules in any transaction are transparently available for anyone to see and software will be written conforming to these rules.
- Crypto-currency and block chain are technologies that follow the DAO principle.
- With DAO, there is no need for a central authority to authenticate or validate.
Will it take off?
- We don’t know yet if Web3 will become the dominant mode of handling the internet but the questions it raises are relevant.
- Web3 is in its very initial days and there is no consensus if it will take off like Web 1.0 or Web 2.0 did.
- There is much skepticism from top tech brains in the industry and the academic community that Web3 does not solve the problems it purports to solve.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Xenotransplantation
Mains level: Bio-ethics associated with Xenotransplantation
Recently, the University Of Maryland School Of Medicine announced that it had successfully transplanted a genetically-modified pig heart into a patient with severe ailments.
What is Xenotransplantation?
- Xenotransplantation, or transplanting organs across different species, was first tried in humans in the 1980s.
- The experiment was abandoned after the famous case of the American Baby Fae who was born with a congenital heart defect and received a baboon heart in 1984.
- However, pig heart valves have been used for replacing damaged valves in humans for over 50 years now.
- Nowadays, harvesting organs from genetically engineered pigs is seen as a viable alternative to meet organs shortage.
How the pigs are genetically engineered?
- The donor pig underwent 10 genetic modifications, by which the genes responsible for the rapid rejection of foreign organs by the human body were inactivated or knocked out.
- Four pig genes were removed, and six human genes were added.
- “GalSafe” pigs, or pigs that had undergone editing to knock out a gene that codes for Alpha-gal (a sugar molecule) were used.
- Alpha-gal can elicit a devastating immune response in humans.
- GalSafe pigs have been well studied, and are approved by the US Food and Drug Administration (FDA) for use in pharmacology.
Why pursue xenotransplantation?
- Modern scientific supporters of xenotransplantation argue that the potential benefits to society outweigh the risks, making pursuing xenotransplantation the moral choice.
- None of the major religions object to the use of genetically modified pig organs for life-saving transplantation.
A crucial case in India
- Harvesting organs from genetically engineered pigs is seen as a viable alternative to meet organs shortage.
- According to the health ministry, around 0.18 million people in India are estimated to suffer from renal failure every year, but only about 6,000 renal transplants are carried out in the country.
- About 25,000-30,000 liver transplants are needed annually in India but only about 1,500 are being performed.
- In the case of the heart, 50,000 people suffer from heart failure and are in need of a heart transplant.
- Yet, only 10-15 heart transplants are carried out in India each year.
Issues with Xenotransplantation
Besides scientific challenges, there are several ethical challenges to overcome:
- Animal rights: Many, including animal rights groups, strongly oppose killing animals to harvest their organs for human use.
- Decreased life expectancy: In the 1960s, many organs came from the chimpanzees, and were transferred into people that were deathly ill, and in turn, did not live much longer afterwards.
- Religious violations: Certain animals such as pork are strictly forbidden in Islam and many other religions.
- Informed consent: Autonomy and informed consent are important when considering the future uses of xenotransplantation.
- Threats of zoonosis: The safety of public health is a factor to be considered. We are already battling the biggest zoonotic disease threat.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: India-China trade deficit
India’s trade with China in 2021 crossed $125 billion, with imports from China nearing a record $100 billion, underlining continued demand for a range of Chinese goods, particularly machinery.
Note: India-China trade has always been an all-time contested issue. This newscard presents crucial stats which is essential to substantiate your answers in Mains as well as in Interviews.
Highlights of the bilateral trade
- Bilateral trade reached $125.6 billion in 2021, with India’s imports from China accounting for $97.5 billion.
- Trade fell from $92.8 billion in 2019 to $87.6 billion in 2020 on account of the pandemic.
- Trade has boomed in 2021 thanks to a recovery in demand as well as rising imports of new categories of goods such as medical supplies.
- Also, note that these figures exclude bilateral trade between India and Hong Kong.
Imports-Exports imbalance
- Imports were higher by 30% from 2019 while India’s exports to China, amounting to $28.1 billion, were up by as much as 56% from two years earlier.
- The trade deficit last year reached $69.4 billion, up by 22% from the pre-pandemic figure in 2019.
- While a break-up of imports and exports wasn’t immediately available, India’s biggest exports to China in recent years were iron ore, cotton, and other raw material-based commodities.
- India has imported large quantities of electrical and mechanical machinery, active pharmaceutical ingredients (APIs), auto components, and over the past two years, a range of medical supplies from oxygen concentrators to PPEs.
A global comparison
- The 43% year-on-year growth in bilateral trade with India was among the highest that China recorded with its major trading partners.
- Trade figures with China’s top three trading partners showed growth of 28.1% with ASEAN (to $878.2 billion), 27.5% with the EU (to $828.1 billion), and 28.7% with the US, (to $755.6 billion).
Back2Basics: India-China Bilateral Trade
- China is India’s largest trading partner.
- Major commodities exported from India to China were: cotton; gems, precious metals, coins; copper; ores, slag, ash; organic chemicals; salt, sulphur, stone, cement; machines, engines, pumps.
- Major commodities imported from China into India were: electronic equipment; machines, engines, pumps; organic chemicals; fertilizers; iron and steel; plastics; iron or steel products; gems, precious metals, coins; ships, boats; medical, technical equipment.
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From UPSC perspective, the following things are important :
Prelims level: Asiatic Cheetah
Mains level: Species reintroduction and related issues
Experts have argued that the introduction of African cheetahs to Kuno National Park could endanger the Asiatic lion which has also been identified for re-introduction.
Do you know?
Cheetahs had a more extensive distribution than lions — there are no records of lions occurring south of the Narmada River, but Asiatic cheetahs roamed most of India until they were hunted to extinction by 1947.
About Asiatic Cheetah
- Cheetah, the world’s fastest land animal was declared extinct in India in 1952.
- The Asiatic cheetah is classified as a “critically endangered” species by the IUCN Red List, and is believed to survive only in Iran.
- It was expected to be re-introduced into the country after the Supreme Court lifted curbs for its re-introduction.
- From 400 in the 1990s, their numbers are estimated to have reached to 50-70 today, because of poaching, hunting of their main prey (gazelles) and encroachment on their habitat.
Why reintroduce Cheetahs?
- Reintroductions of large carnivores have increasingly been recognized as a strategy to conserve threatened species and restore ecosystem functions.
- The cheetah is the only large carnivore that has been extirpated, mainly by over-hunting in India in historical times.
- India now has the economic ability to consider restoring its lost natural heritage for ethical as well as ecological reasons.
Why was the project halted?
- The court was worried whether the African cheetahs would find the sanctuary a favorable climate as far as the abundance of prey is concerned.
- Those who challenged the plan argued that the habitat of cheetahs needed to support a genetically viable population.
Issues with cheetah re-introduction
- Since 2018, dozens of lions have died from diseases, including canine distemper, opening up a frightening possibility of loss when confined to a single location.
- Establishing an additional free-ranging wild lion population in Kuno is of paramount importance and roadblocks, if any, must be transparently addressed.
- Clearly, the introduction of African cheetahs cannot take precedence over translocating Asiatic lions from Gujarat to Kuno National Park as ordered by none other than the apex court in 2013.
- However, simultaneous re-introduction can create a conflict for prey between these two wild cats.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Taxing cryptocurrencies
Context
Notwithstanding the eventual introduction of the Cryptocurrency and Regulation of Official Digital Currency Bill in Parliament, cryptocurrencies continue to proliferate.
Provisions in Income Tax Act 1961 to tax cryptocurrencies
- Cryptocurrencies not mentioned in Income Tax Act, 1961: Although the Income Tax Act, 1961 (“IT Act”) does not specifically mention cryptocurrencies, it does cast a wide enough net to bring crypto transactions under its ambit.
- Capital asset: Trading in cryptocurrency may be classified as transfer of a ‘capital asset’, taxable under the head ‘capital gains.
- Business income: If such cryptocurrencies are held as stock-in trade and the taxpayer is trading in them frequently, the same will attract tax under the head ‘business income’.
- Even if one argues that crypto transactions do not fall under the above heads, Section 56 of the IT Act shall come into play, making them taxable under the head ‘Other sources of income’.
Challenges in taxing cryptocurrencies
- The above provisions in themselves are not sufficient in order to put in place a simple yet effective taxation regime for cryptocurrencies.
[1] Varied interpretations:
- First, the absence of explicit tax provisions has led to uncertainty and varied interpretations being adopted in relation to mode of computation, applicable tax head and tax rates, loss and carry forward, etc.
- For instance, the head of income under which trading of self generated cryptocurrency (currencies which are created by mining, acquired by air drop, etc.) is to be taxed is unclear.
- Since there is no consistency in the rates provided by the crypto-exchanges, it is difficult to arrive at a fair market value.
- Similarly, when a person receives cryptocurrency as payment for rendering goods or services, how should one arrive at the value of the said currency and how should such a transaction be taxed?
[2] Identifying tax jurisdiction
- It is often tricky to identify the tax jurisdiction for crypto transactions as taxpayers may have engaged in multiple transfers across various countries and the cryptocurrencies may have been stored in online wallets, on servers outside India.
[3] The anonymity of taxpayer
- The identities of taxpayers who transact with cryptocurrencies remain anonymous.
- Exploiting this, tax evaders have been using crypto transactions to park their black money abroad and fund criminal activities, terrorism, etc.
[4] Lack of third party information on crypto transaction
- The lack of third party information on crypto transactions makes it difficult to scrutinise and identify instances of tax evasion.
- One of the most efficient enforcement tools in the hands of Income Tax Department is CASS or ‘computer aided scrutiny selection’ of assessments, where returns of taxpayers are selected inter alia based on information gathered from third party intermediaries such as banks.
- However, crypto-market intermediaries like the exchanges, wallet providers, network operators, miners, administrators are unregulated and collecting information from them is very difficult.
[5] Physical goods/services may change hand in return for cryptocurrencies
- Even if the crypto-market intermediaries are regulated and follow Know Your Customer (KYC) norms, there remains a scenario, where physical cash or other goods/services may change hands in return for cryptocurrencies.
- Such transactions are hard to trace and only voluntary disclosures from the parties involved or a search/survey operation may reveal the tax evaders.
Steps need to be taken
- Statutory provision: The income-tax laws pertaining to the crypto transactions need to be made clear by incorporating detailed statutory provisions.
- Awareness generation: This should be followed by extensive awareness generation among the taxpayers regarding the same.
- Separate mandatory disclosure: The practice of having separate mandatory disclosure requirements in tax returns (as is the case in the United States) should be placed on the taxpayers as well as all the intermediaries involved, so that crypto transactions do not go unreported.
- Strengthen international legal framework: Additionally, the existing international legal framework for exchange of information should be strengthened to enable collecting and sharing of information on crypto-transactions.
- This will go a long way in linking the digital profiles of cryptocurrency holders with their real identities.
- Training tax officers: the Government must impart training to its officers in blockchain technology.
- The United Nations Office on Drugs and Crime’s ‘Cybercrime and Anti-Money Laundering’ Section (UNODC CMLS) has developed a unique cryptocurrency training module, which can aid in equipping tax officers with requisite understanding of the underlying technologies.
Consider the question “What are the provision in Income Tax Act 1961 to tax the cryptocurrencies? What are the challenges in taxing cryptocurrencies? “
Conclusion
It is certain that cryptocurrencies are here to stay. A streamlined tax regime will be essential in the formulation of a clear, constructive and adaptive regulatory environment for cryptocurrencies.
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From UPSC perspective, the following things are important :
Prelims level: BrahMos Missile
Mains level: India's missile arsenal and its global competitiveness
In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.
About BrahMos Missile
- BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
- They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
- It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
- The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
- Such weapons are in the arsenal of most major militaries in the world.
Its capability
- BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
- It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
- An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.
Various versions
- The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
- Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
- The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.
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Back2Basics:
Explained: India’s Missile Capability
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Desh Ke Mentor Programme, NCPCR
Mains level: Child rights issue
A controversy recently broke out after the National Commission for Protection of Child Rights (NCPCR) recommended that the Delhi government suspend its flagship ‘Desh ke Mentor’ programme.
What is the Desh Ke Mentor Programme?
- The programme was launched in October 2021 and is aimed at connecting students in classes IX to XII with voluntary mentors.
- People between the ages of 18 and 35 can sign up to be mentors through an app created by a team at the Delhi Technological University and will be connected with students based on mutual interests.
- The mentorship entails regular phone calls for a minimum of two months, which can optionally be carried on for another four months.
- The idea is for the young mentors to guide students through higher education and career options, preparation for higher education entrance exams, and dealing with the pressure of it all.
How is a person selected to be a mentor?
- The registration process takes place on the Desh ke Mentor app.
- The volunteer has to fill in information about themselves such as their date of birth, education qualification, profession, organisation they work with and so on.
- However, it is optional for them to upload any proof of identity.
- Once the registration is complete, the mentor is connected to a set of children of the same gender as themselves whose interests align with theirs.
- Students have to take parental consent before becoming a part of the programme.
What are the concerns raised by the NCPCR regarding this process?
- It has stated that assigning children to a mentor of the same gender as them does not necessarily assure their safety from abuse.
- It has also expressed concern over the lack of police verification of the mentors.
- It has a psychometric test which has not been scrutinized by professional practising experts.
- It has also stated that limiting interactions to phone calls also does not ensure the safety of children since “child-related crime can be initiated through phone calls as well.”
Back2Basics: National Commission for Protection of Child Rights (NCPCR)
- The NCPCR is an Indian statutory body established by an Act of Parliament, the Commission for Protection of Child Rights (CPCR) Act, 2005.
- It works under the aegis of the Ministry of Women and Child Development and began operational on 5 March 2007.
- It works to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and the UN Convention on the Rights of the Child.
- As defined by the commission, a child includes a person up to the age of 18 years.
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From UPSC perspective, the following things are important :
Prelims level: Hunga Volcano
Mains level: Not Much
A distant undersea volcano has erupted in spectacular fashion near the Pacific nation of Tonga sending large tsunami waves reaching the shore.
Hunga Volcano
- The Hunga-Tonga-Hunga-Ha’apai volcano has erupted regularly over the past few decades.
- It consists of two small uninhabited islands, Hunga-Ha’apai and Hunga-Tonga, poking about 100m above sea level 65km north of Tonga’s capital Nuku’alofa.
- But hiding below the waves is a massive volcano, around 1800m high and 20 kilometres wide.
- During events in 2009 and 2014/15 hot jets of magma and steam exploded through the waves. But these eruptions were small, dwarfed in scale by the January 2022 events.
- Researchers suggest this is one of the massive explosions the volcano is capable of producing roughly every thousand years.
Impact of the eruption
- The ash plume is already about 20km high.
- Most remarkably, it spread out almost concentrically over a distance of about 130km from the volcano, creating a plume with a 260km diameter, before it was distorted by the wind.
- The eruption also produced a tsunami throughout Tonga and neighbouring Fiji and Samoa.
- Shock waves traversed many thousands of kilometres, were seen from space, and recorded in New Zealand some 2000km away.
- All these signs suggest the large Hunga caldera has awoken.
Why is it so explosive even after being underwater?
Answer: Fuel-coolant interaction
- If magma rises into sea water slowly, even at temperatures of about 1200 degrees Celsius, a thin film of steam forms between the magma and water.
- This provides a layer of insulation to allow the outer surface of the magma to cool.
- But this process doesn’t work when magma is blasted out of the ground full of volcanic gas.
- When magma enters the water rapidly, any steam layers are quickly disrupted, bringing hot magma in direct contact with cold water.
- Volcano researchers call this ‘fuel-coolant interaction’ and it is akin to weapons-grade chemical explosions.
A chain reaction
- Extremely violent blasts tear the magma apart.
- A chain reaction begins, with new magma fragments exposing fresh hot interior surfaces to water, and the explosions repeat, ultimately jetting out volcanic particles and causing blasts with supersonic speeds.
How has it emerged out to be so big?
- The caldera is a crater-like depression around 5km across.
- Small eruptions (such as in 2009 and 2014/15) occur mainly at the edge of the caldera, but very big ones come from the caldera itself.
- These big eruptions are so large the top of the erupting magma collapses inward, deepening the caldera.
- Looking at the chemistry of past eruptions, we now think the small eruptions represent the magma system slowly recharging itself to prepare for a big event.
What next?
- This latest eruption has stepped up the scale in terms of violence.
- Researchers are still in the middle of this major eruptive sequence and many aspects remain unclear, partly because the island is currently obscured by ash clouds.
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From UPSC perspective, the following things are important :
Prelims level: NEAT Scheme
Mains level: HRD schemes for coding skills
NEAT, first-of-its-kind government scheme, set in motion over two years ago, has finally taken shape, bringing courses offered by a group of edtech platforms within the reach of college and university students from socio-economically disadvantaged backgrounds.
NEAT Scheme
- The National Education Alliance for Technology (NEAT) is implemented by the All India Council for Technical Education (AICTE).
- It aims to act as a bridge between edtech companies, academic institutions and students.
- The initiative was taken after a Ministry of Education review noted that learning tools developed by edtech platforms that can supplement classroom teaching need to be made more accessible.
- Accordingly, it was proposed that a portal be created where edtech platforms can be roped in to display their products after a shortlisting process.
What are the products on display in the portal?
- The NEAT portal has separate sections listing products for students and educational institutes respectively.
- The companies were shortlisted by independent expert committees leaving no room for favouritism, he said.
- Under the B2B (business to business) segment of the portal, courses are on offer for higher education institutes to purchase in bulk for their students.
- And the B2C (business to customer) section lists courses that eligible students can browse through and choose from.
- The courses range from accounting and finance to coding, including advanced programming languages like python.
How to enroll into this scheme?
- There are two different ways through which students can enroll under the scheme.
- The basic objective of the scheme is to make students from disadvantaged backgrounds aware of the availability of such opportunities that can help them learn new skills or polish existing ones.
- In that regard, the AICTE reached out to higher education institutes across the country, directing them to inform students about the portal and enroll them based on their needs and consent.
- The edtech platforms have been allowed to charge fees as per their policies.
How will it benefit students from backward communities?
- In order to do that, the government has mandated that every shortlisted company will have to offer free coupons to the extent of 25 per cent of the total registrations for their solution through NEAT portal.
- Through this route, the government created a bank of 12.15 lakh free coupons over the last two years.
- And it has now started distributing those coupons among students belonging to SC/ST/OBC and EWS categories with the annual family income cap fixed at Rs 8 lakh.
What are the courses in demand?
- The top five courses in terms of demand are python programming, C, C++, Java programming, data science, life science and healthcare analysis, and interview preparation.
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From UPSC perspective, the following things are important :
Prelims level: Mekedatu Project
Mains level: Interstate river water disputes
The ‘Mekedatu march’ has been launched for the implementation of a project to build a reservoir on the Cauvery at Mekedatu near the Tamil Nadu border.
What is the Mekedatu Project?
- Mekedatu, meaning goat’s leap, is a deep gorge situated at the confluence of the rivers Cauvery and Arkavathi, about 100 km from Bengaluru, at the Kanakapura taluk in Karnataka’s Ramanagara district.
- In 2013, then Karnataka announced the construction of a multi-purpose balancing reservoir project.
- The project aimed to alleviate the drinking water problems of the Bengaluru and Ramanagara districts.
- It was also expected to generate hydroelectricity to meet the power needs of the state.
Issues with the project
- Soon after the project was announced TN has objected over granting of permission or environmental clearance.
- Explaining the potential for damage to the lower riparian state of TN, it said that the project was in violation of the final award of the Cauvery Water Disputes Tribunal.
- It stated that the project will affect the natural flow of the river Cauvery considerably and will severely affect the irrigation in TN.
What do the Cauvery Water Disputes Tribunal and the Supreme Court say?
- The Cauvery Water Disputes Tribunal, in its final order on February 2007, made allocations to all the riparian States — Karnataka, Kerala and Tamil Nadu, apart from the Union Territory of Puducherry.
- It also stipulated “tentative monthly deliveries during a normal year” to be made available by Karnataka to Tamil Nadu.
- Aggrieved over the final order for different reasons, the States had appealed to the Supreme Court.
- In February 2018, the court, in its judgment, revised the water allocation and increased the share of Karnataka by 14.75 thousand million cubic feet (tmc ft) at the cost of Tamil Nadu.
- The enhanced quantum comprised 4.75 tmc ft for meeting drinking water and domestic requirements of Bengaluru and surrounding areas.
What is Karnataka planning?
- Encouraged by the Supreme Court verdict, Karnataka, which sees the order as an endorsement of its stand, has set out to pursue the Mekedatu project.
- Originally proposed as a hydropower project, the revised Mekedatu dam project has more than one purpose to serve.
- A hydropower plant of nearly 400 MW has also been proposed.
- The Karnataka government has argued that the proposed reservoir will regulate the flow to Tamil Nadu on a monthly basis, as stipulated by the Tribunal and the Supreme Court.
- This is why Karnataka has contended that the project will not affect the interests of Tamil Nadu farmers.
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From UPSC perspective, the following things are important :
Prelims level: Cryptocurrencies
Mains level: Carbon footprint of cryptocurrencies
Bitcoin prices are rising these days and so will be its mining. As cryptocurrency will become mainstream, its carbon footprint cannot be ignored.
What are Cryptocurrencies?
Cryptocurrency
Global crypto market
- In 2019, the global cryptocurrency market was approximately $793 million.
- It’s now expected to reach nearly $5.2 billion by 2026, according to a report by the market research organization Facts and Factors.
- In just one year—between July 2020 and June 2021—the global adoption of cryptocurrency surged by more than 880 percent.
Carbon footprints of Bitcoins
- Increasing popularity of cryptocurrency has environmentalists on edge, as the digital “mining” of it creates a massive carbon footprint due to the staggering amount of energy it requires.
- A/c to the Bitcoin Energy Consumption Index, the carbon footprint of Bitcoin is equivalent to that of New Zealand.
- Both emit nearly 37 megatons of carbon dioxide into the atmosphere every year.
What is Mining?
- Mining is a process in which computational puzzles are solved in order to verify transactions between users, which are then added to the blockchain.
- In simpler terms, the works are created, or “minted,” through a process called proof-of-work (PoW), which establishes its unique identity.
How do cryptocurrencies create such a footprint?
- Unlike mainstream traditional currencies, bitcoin is virtual and not made from paper or plastic, or even metal.
- Bitcoin is virtual but power-hungry as it is created using high-powered computers around the globe.
- Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles.
- This is an energy-intensive process that often relies on fossil fuels, particularly coal, the dirtiest of them all.
Conclusion
- What this means is that, unlike traditional currency or gold, Bitcoin is not solely a settlement layer, not solely a store of value, and not solely a medium of exchange.
- This makes Bitcoin’s relative energy consumption productive in comparison to comparative sectors, given its robust potential uses.
- The promise of such an endeavor offers hope for a more sustainable cryptocurrency future.
- Whether this will make much difference to the climate crisis in light of government and industrial inaction remains to be seen.
Back2Basics: Bitcoin Energy Consumption Index
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Women in Indian army
Context
Last year, the Supreme Court threw open the hallowed portals of the National Defence Academy for women. Something to truly celebrate on January 15, Army Day, this year.
Background
- The first batch of women officers was inducted into the Indian Army in non-medical roles via the Short Service Commission in 1992.
- Since 2008, women were inducted as permanent commissioned officers in the legal and education corps and as permanent commissioned officers in eight more non-combative corps in 2020.
The low number of women in Army
- As recent as 2020, women officers in the Indian army (excluding the medical corps) numbered just about three per cent.
- Compare this to 16 per cent in the US, 15 per cent in France and 10 per cent in both Russia and the UK.
Significance of allowing women to NDA
- When in February 2020, the Supreme Court decreed that women officers should get command positions on par with male officers, it also effectively dismissed the military’s earlier objection that it would lead to “operational, practical and cultural problems”.
- The SC went on to say that denying women commands based on the above argument was discriminatory and reinforced stereotypes.
- Last year, the Supreme Court threw open the National Defence Academy for women to compete for the seats and subsequent permanent commission in the Indian army in any corps they desire, including the combat ones.
- Addressing the shortage of officers: This may effectively address the long-standing shortage of officers in the Indian army in general. In response to a question in Rajya Sabha a month ago, the Minister of State for Defence said the Army has a shortage of 7,476 officers.
- This torch may also help confront the chauvinism, often misspelt as chivalry, that indisputably exists in the Army.
Conclusion
The move promises to change the composition of this arm of the defence force not just quantitatively, but also qualitatively — both dire requirements of the force at present.
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Back2Basics: Permanent Commission (PC) Vs. Short Service Commission (SSC)
- SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire.
- The officers inducted through the SSC usually serve for a period of 14 years.
- At the end of 10 years, the officers have three options.
- A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years.
- They can either select for a PC or opt-out or have the option of a 4-years extension.
- They can resign at any time during this period of 4 years extension.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MSP
Mains level: Paper 3- Making farming viable through legal MSP
Context
There has been debate on the issue of MSP with some arguing against it while some favouring it.
The issues with MSP
- The broad strands of argument against MSP are:
- MSP hinders the price discovery: Providing MSP does not allow the market to discover the prices; if market cleared prices are less than MSP, then the only buyer would be the government; this would render the government bankrupt.
- FPO as a mechanism to deal with markets: If markets have any distortions, the way to negotiate it is through Farmer Producer Organisations (FPOs) — as demonstrated by Amul.
- Provide income support through DBT: A better way to address the possible income gap is to give an income support-based direct benefit transfer (DBT).
Why MSP is necessary?
1] Barriers in agri-markets
- Through tariffs and other measures, we have built a national barrier on markets, where gates are opened on the basis of strategic intent.
- If we were to open our borders for free movement of grains from elsewhere, we may even argue for unlocking agricultural land for more lucrative purposes without worrying about food self-sufficiency, buffer stocking and domestic food safety.
- We may have to accept a national food safety for at least the essential foodgrains and pulses.
2] Role of MSP as price signalling and why it needs to be given as legal guarantee
- Disproportionate risk: If we were to look at farming, we realise that this exposes itself to disproportionate risks.
- First, there is no stop-loss mechanism after sowing the seed, except for destroying the crop for the season.
- This enterprise not only has the usual business risks but also has the enhanced risk of the force majeure elements that destroy the enterprise — a sudden hail storm, drought, unseasonal showers, a pest attack, a locust attack — there are too many things that the farmer cannot control.
- Therefore, an MSP provides a powerful signal to the farmer to exercise the choice of sowing a particular crop because the farmer can back-calculate the expected margin.
- If MSP is a signal that helps the farmer to choose a crop, then it must remain a choice at the harvest time as well.
- The significance of MSP is only when the markets do not clear the price.
- In such a situation, the farmer gets a return less than the MSP and by this argument we are escorting the farm fraternity towards bankruptcy.
- A legal guarantee is, therefore, needed.
- The argument that the state will have to procure all the floating stock in the market and may become bankrupt is fallacious.
- The intervention of the state in the markets usually covers information asymmetry, arbitrage and cools the markets when they get overheated.
3] Why not opt for income support instead of MSP?
- Income support does not address the issue of viability of the farming operations.
- There is no doubt that we need to make farming viable.
- It is important to address the prices of each crop as a strategic signalling mechanism: For crops that would be encouraged and those that would be discouraged.
4] Issues with drawing parallels with AMUL
- While the Amul model recognised the inherent power of markets, it took about five decades to make the system competitive — the investments were made in breed improvement, free veterinary services, better cattle feed, capital subsidy for processing plants, and return-free capital as investments.
- The nature of subsidies was smart and innovative.
- Dairying was the last bit to be liberalised, and it enjoyed protection even when we opened up in 1991.
Way forward
- Modernise the markets: We need to modernise the markets and storage and processing facilities.
- There is no point in conflating modernisation with liberalisation.
- Investment: If we need to take Indian agriculture on the path of Amul, we need to start making those investments now.
Consider the question “What are the objectives of providing MSP? How legal basis to MSP could help in making agriculture viable in India?”
Conclusion
Let us use the MSP framework smartly on diversified crops, on a decentralised basis while we develop the markets. A legal guarantee will only assure the farmers that they will not be bankrupted.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: AUKUS
Mains level: Paper 2- Indo-Pacific challenge
Context
The geopolitics of the Indo-Pacific, which is changing fast. As it moves into 2022, the region will carry the imprint of the past five years, and will have to chart a course through inter-state tensions and crises, using both diplomacy and military preparedness.
What will shape the geopolitics and geoeconomics of the Indo-Pacific?
- Key players in the region: The region is central to world economy and peace, and nine countries are key players: the US, China, Japan, India, Germany, the UK, Russia, Australia and France.
- The geopolitics and geo-economics of the Indo-Pacific will be largely shaped by the interplay of relations among these nations.
- US-China relations: Of paramount importance is the US-China equation.
- Expect this relationship to be marked by continually adversarial, competitive and cooperative traits.
- Beijing’s south/east China policy, aggressive postures towards Taiwan, human rights violations in Xinjiang, the subjugation of Hong Kong’s citizenry and assertive economic outreach in the Indo-Pacific — these will weigh heavily on US-China relations.
A significant role of groupings and individual nations
- In this standoff, the role of new groupings and individual nations is significant.
- Role of Quad: Foremost are the Quad, a strategic partnership between the US, India, Japan and Australia and the militaristic AUKUS (Australia, UK, US).
- India-Australia ties: Meanwhile, India and Australia are on track to deepen ties, not only bilaterally but also with the other two Quad powers.
- The next Quad summit, probably hosted by Japan, will cement the grouping.
- EU’s role: The EU’s Indo-Pacific strategy, announced last September, aims at increasing its economic and security profile in, and linkages with, the region.
- UK’s role: Only by being more strategic and less mercantilist, more candid and assertive with China, and more cooperative with partners such as India, can the EU — and its former member the UK — hope to become vital players in the Indo-Pacific.
- ASEAN, located in the middle of the Indo-Pacific waters, faces the heat of China’s aggression and the sharpening great power rivalry.
- It must enhance its realism and shed its tendency of wishing away problems.
Suggestions for India
- 1]Strengthen the Quad – especially by ensuring that the grouping fulfils its commitment to deliver at least one billion vaccine doses to Indo-Pacific nations by December 2022.
- India must protect its established relationship with Russia, and show some resilience in dialogue with Beijing.
- 2] Enhance relations with ASEAN nations: It must enhance cooperation with key Southeast Asian partners —Indonesia, Vietnam, Philippines and Thailand — while humouring ASEAN as a grouping.
- 3] Give attention to African and Indian Ocean island states: The eastern and southern planks of Africa and the Indian Ocean island states need continued high policy attention and financial resources.
- A clear economic and trade agenda to follow the flag in this vital region, is certain to yield long-term dividends.
Consider the question “Indo-Pacific will present India strategic and economic opportunities that India must not miss. However, the region will have to chart a course through inter-state tensions and crises. Comment.”
Conclusion
India has done well by fulfilling its humanitarian duties during the pandemic. Learning how to convert them smartly into economic and strategic opportunities in its periphery is the focused task for the nation in 2022.
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