Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rupee Settlement System for International Trade
Mains level: Read the attached story
India’s rupee trade settlement mechanism, a means of using rupees instead of dollars and other big currencies for international transactions, is attracting interest from more countries.
More countries are interested
- Tajikistan, Cuba, Luxembourg and Sudan have begun talking to India about using the mechanism.
- They have shown interest in opening special rupee accounts, called vostro accounts.
- Opening of these accounts needs approval from the Reserve Bank of India.
- It has already been used by Russia following the imposition of sanctions on Moscow over the Ukraine war.
Rupee Settlement System for International Trade
- Banks acting as authorized dealers for such transactions would have to take prior approval from the regulator to facilitate this.
- All exports and imports under the invoicing arrangement may be denominated and invoiced in Rupee.
- The exchange rate between the currencies of the two trading partner countries may be market determined.
- Exporters and importers can now use a Special Vostro Account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees.
- These accounts can be used for payments for projects and investments, import or export advance flow management, and investment in Treasury Bills subject to Foreign Exchange Management Act, 1999 (FEMA).
- Also, the bank guarantee, setting-off export receivables, advance against exports, use of surplus balance, approval process, documentation, etc., related aspects would be covered under FEMA rules.
Benefits of such a mechanism
- Trade facilitation: This will also facilitate trade with countries like Russia which are facing sanctions.
- FOREX savings: India imports more than it exports so the country will also save foreign currency under the new arrangement.
- Rupee appreciation: The rupee is at a historic low against the dollar. It will also help stabilize rupee.
- Mitigating war impact: Payments had become a pain point for exporters immediately after the Russia-Ukraine war broke out, especially after Russia was cut off from the SWIFT payment gateway.
- Convertibility easing: We see this as a first step towards 100% convertibility of rupee.
- Energy security: It will also help buy discounted crude oil from Russia, which now accounts for 10% of all imported crude.
- Export promotion: As such, the new mechanism will help India promote its exports.
Which countries would prefer this system?
- War mongering Russia: For now, it looks like trade settlements in rupee will be limited to countries like Russia and Iran who are facing sanctions from the West
- Bankrupt Sri Lanka: SL is going through economic turmoil and India has been consistently extending lines of credit to SL.
- Immediate neighbors: Other countries may include immediate neighbors of India.
Rupees over Dollars: Why countries would prefer Rupees?
- At a very simplistic level, this is like two Indians deciding to use an alternative mode of exchange that they have come up with, instead of using rupees.
- In other terms, this is similar to the barter system.
- The main reason for countries to want to trade with India in rupees is this:
- USD has been going through a phase of strength against most currencies in the world
- Strong USD performance has essentially made imports expensive for most countries
- Sri Lanka, which is going through one of its worst economic crises in decades, is a glaring example of a country in which the economy has come to a halt due to a drastic fall in forex reserves
- While the Sri Lankan Rupee has declined over 83 percent against the US Dollar, its fall against the Indian Rupee has been lower at 70 percent.
- So instead of paying 83 percent more to make purchases in USD, Sri Lanka can pay in Indian Rupees and save some money.
Challenges
- Trade surplus countries’ preference: The question that RBI and the Indian government will have to answer is this – why would countries with a trade surplus with India want to trade in rupees?
- Negative trade balance: China had a $73-billion trade surplus with India in 2021-22 – that is, Indian imports from China exceeded its exports to China by $73 billion.
- Idle money lying useless: If China were to trade with India in rupees, it would have Indian rupees worth $73 billion (about ₹5.77 lakh crore) sitting idle in its Rupee Vostro accounts in an Indian bank.
- Few countries interested: Countries whose exports to India are more than imports, will not be too enthusiastic to trade in rupees, especially if the difference is huge as in the case of China.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Women safety and dignity issues
An acid attack in in Delhi has once again brought back to focus the heinous crime of acid attacks and the easy availability of corrosive substances.
What is Acid Attack?
- An acid attack, also called acid throwing, vitriol attack, or vitriolage, is a form of violent assault involving the act of throwing acid or a similarly corrosive substance onto the body of another.
- It intends to disfigure, maim, torture, or kill.
- Perpetrators of these attacks throw corrosive liquids at their victims, usually at their faces, burning them, and damaging skin tissue, often exposing and sometimes dissolving the bones.
- The most common types of acid used in these attacks are sulphuric and nitric acid.
- Hydrochloric acid is sometimes used but is much less damaging.
How prevalent are acid attacks in India?
- Though heinous, acid attacks on women are not as prevalent a crime as others against women.
- According to data compiled by the National Crime Records Bureau (NCRB), there were 150 such cases recorded in 2019, 105 in 2020 and 102 in 2021.
- West Bengal and UP consistently record the highest number of such cases generally accounting for nearly 50% of all cases in the country year on year.
- The charge-sheeting rate of acid attacks stood at 83% and the conviction rate at 54% in 2019.
- In 2020, the figures stood at 86% and 72% respectively.
- In 2021, the figures were recorded to be 89% and 20% respectively.
What is the law on acid attacks?
- Until 2013, acid attacks were not treated as separate crimes.
- However, following amendments carried out in the IPC, acid attacks were put under a separate section (326A) of the IPC.
- Such attacks made punishable with a minimum imprisonment of 10 years which is extendable to life along with fine.
- The law also has provisions for punishment for denial of treatment to victims or police officers refusing to register an FIR or record any piece of evidence.
- Denial of treatment (by both public and private hospitals) can lead to imprisonment of up to one year and dereliction of duty by a police officer is punishable by imprisonment of up to two years.
Creating deterrence against acid attack
(1) Clear rules
- In 2013, the Supreme Court took cognizance of acid attacks and passed an order on the regulation of sales of corrosive substances.
- Based on the order, the MHA issued an advisory to all states on how to regulate acid sales and framed the Model Poisons Possession and Sale Rules, 2013 under The Poisons Act, 1919.
- It asked states to frame their own rules based on model rules, as the matter fell under the purview of states.
(2) Regulation of acid sale
- In 2015, MHA issued an advisory to all states to ensure speedy justice in cases of acid attacks by expediting prosecution.
- According to the MHA’s directions and the model rules, over-the-counter sale of acid was not allowed unless the seller maintains a logbook/register recording the sale of acid.
- This logbook was to also contain the details of the person to whom acid is sold, the quantity sold, the address of the person and also specify the reason for procuring acid.
- The buyer must also prove he/she is above 18 years of age.
(3) Effective monitoring
- Sellers are also required to declare all stocks of acid with the concerned Sub-Divisional Magistrate (SDM) within 15 days and in case of undeclared stock of acid.
- The SDM can confiscate the stock and suitably impose a fine of up to Rs 50,000 for a breach of any of the directions.
Rules for victim compensation and care
- Free treatment: States are supposed to ensure that treatment provided to acid attack victims in any hospital, public or private, is free of cost.
- Aftercare and rehabilitation: Based on Supreme Court directions, the MHA asked states to make sure acid attack victims are paid compensation of at least Rs. 3 lakhs by the concerned State Government/UT.
- Funding to NGOs: MHA suggested states should also extend social integration programs to the victims for which NGOs could be funded to exclusively look after their rehabilitative requirements.
Preventing such attacks
- Still on rise: The regulations on acid sales largely help in tracking the accused and not so much in prevention.
- Regulatory bottlenecks: Acid is still easily available in many places. Then these are crimes of passion. In a majority of cases the accused is not even thinking about consequences.
Way forward
- Things improve as social attitudes are changing and the focus of the police in dealing with crimes against women can cause some deterrence.
- But the key to solving this problem will always remain in society.
- We must create more awareness. Parents must teach their children the importance of boundaries and consent.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: DNA Fingerprinting
Mains level: Advanced criminology
Delhi Police has established identity of a victim of brutal murder and mutilation by DNA fingerprinting.
What is DNA fingerprinting?
- DNA fingerprinting was first developed in 1984 by Alec Jeffreys in the UK, after Jeffreys discovered that no two people could have the same DNA sequence.
- Within three years of the discovery, the UK achieved the world’s first conviction based on DNA evidence in a case of rape and murder.
How is DNA fingerprinting done?
- Each person’s DNA, except for identical twins, is unique.
- By analyzing selected DNA sequences (called loci), a crime laboratory can develop a profile to be used in identifying a suspect.
- DNA can be extracted from many sources, such as hair, bone, teeth, saliva, and blood.
- Because there is DNA in most cells in the human body, even a minuscule amount of bodily fluid or tissue can yield useful information.
- Samples may even be extracted from used clothes, linen, combs, or other frequently used items.
Deoxyribonucleic Acid (DNA)
- DNA is the hereditary material in humans and almost all other organisms. Nearly every cell in a person’s body has the same DNA.
- Most DNA is located in the cell nucleus (where it is called nuclear DNA), but a small amount of DNA can also be found in the mitochondria (where it is called mitochondrial DNA or mtDNA).
- Mitochondria are structures within cells that convert the energy from food into a form that cells can use.
- The information in DNA is stored as a code made up of four chemical bases: adenine (A), guanine (G), cytosine (C), and thymine (T).
- Human DNA consists of about 3 billion bases, and more than 99 percent of those bases are the same in all people.
- The order, or sequence, of these bases determines the information available for building and maintaining an organism, similar to the way in which letters of the alphabet appear in a certain order to form words and sentences.
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How it is used in criminal investigation?
- DNA evidence is used to solve crimes in two ways:
- If a suspect is known, that person’s DNA sample can be compared to biological evidence found at a crime scene to establish whether the suspect was at the crime scene or whether they committed the crime.
- If a suspect is not known, biological evidence from the crime scene can be analyzed and compared to offender profiles in existing DNA databases to assist in identifying a suspect.
- Beyond its accuracy, DNA fingerprinting can also sift through crime scene evidence in different ways, previously unavailable to investigators.
- For instance, advanced DNA fingerprinting can make separate prints of various individuals even from a sample mixture found at the crime scene — this is of help during gang rape investigations as each perpetrator can be individually identified.
DNA fingerprinting in India
- By 1988, Lalji Singh, who had been in the UK from 1974 to 1987 on a Commonwealth Fellowship, developed DNA fingerprinting for crime investigations in Hyderabad.
- Today, Lalji Singh, who passed away in 2017, is known as “the father of DNA fingerprinting in India.”
- In 1989, DNA fingerprinting was first used in a case by the Kerala Police.
- By the early 1990s, the technology had begun to be used for establishing paternity, and to link criminals and identify victims in sensational crimes.
- From the 2000s onwards, the technology became a staple in rape cases where vaginal swab samples were matched with semen samples from suspects.
Challenges with DNA fingerprinting in India
- It is vital to ensure that the DNA of the investigators does not get mixed with that of the victims or the suspects.
- Thus, picking up samples from a crime scene with sterile tools and storing samples in a proper manner are crucial for the evidence to stand a judicial test.
- While India has rules and guidelines regarding this, India’s police forces have a lot of catching up to do with counterparts overseas.
- While central agencies such as CBI have the expertise to ensure that crime scenes are protected and correct procedure is followed, state police forces are inadequately trained or fully equipped.
Issues with such technology
- The problem is not limited to the police awareness.
- The capacity for DNA fingerprinting in the country itself is lacking.
- DNA fingerprinting is available only at a few places — Maharashtra, West Bengal, Delhi, Hyderabad and Chandigarh.
- Advanced practices in the technology are limited to the Centre for DNA Fingerprinting and Diagnostics (CDFD) in Hyderabad.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GI Tag
Mains level: Contribution of GI tags in rural economy
Five agricultural products of Kerala have been granted Geographical Indication (GI) status.
Which are the 5 GI products?
- These are the latest Geographical Indications that have been registered-
- Attappady Attukombu Avara: It cultivated in the Attappady region of Palakkad, is curved like a goat’s horn as its name indicates. Its higher anthocyanin content compared to other dolichos beans imparts violet colour in the stem and fruits. Anthocyanin is helpful against cardiovascular diseases along with its antidiabetic properties. Other than this, calcium, protein, and fibre content are also high. The higher phenolic content of imparts resistance against pest and diseases, making the crop suitable for organic cultivation.
- Attappady Thuvara: It is having seeds with white coat. Compared to other red grams, Attappady Thuvara seeds are bigger and have higher seed weight. This delicious red gram, which is used as vegetable and dal, is rich in protein, carbohydrate, fibre, calcium and magnesium.
- Kanthalloor-Vattavada Veluthulli (garlic): Compared to the garlic produced in other areas, this garlic contains higher amount of sulphides, flavonoids, and proteins. It is rich in allicin, which is effective against microbial infections, blood sugar, cancer, cholesterol, heart diseases, and damages to blood vessels. The garlic cultivated in this area is also rich in essential oil.
- Onattukara Ellu and its oil: It is famous for its unique health benefits. Relatively higher antioxidant content in Onattukara Ellu helps in fighting the free radicals, which destroy the body cells. Also, the high content of unsaturated fat makes it beneficial for heart patients.
- Kodungalloor Pottuvellari: It is cultivated in Kodungalloor and parts of Ernakulam is consumed as juice and in other forms. This snap melon, which is harvested in summer, is an excellent for quenching thirst. It contains high amount of Vitamin C. Compared to other cucurbits, nutrients such as calcium, magnesium, fibre and fat content are also high in that.
- The unique features of the products, imparted by the agro-climatic conditions of the geographical area of their production, are the basis for getting a GI tag.
What are the other GIs tags awarded?
Adding to the present collection of Geographical Indications (GIs), nine new items, including-
- Gamocha of Assam
- Tandur red gram of Telangana
- Raktsey Karpo apricot of Ladakh, and
- Alibag white onion of Maharashtra
Do you know?
Karnataka and Tamil Nadu are states with the highest number of GI tags, followed by Kerala (35), Uttar Pradesh (34), and Maharashtra (31).
About GI Tag
- Recognised by the World Trade Organization (WTO), GI is used to denote the geographical territory from where a product, be it agricultural produce, natural product, or manufactured.
- It conveys the assurance of quality, distinctiveness, and attributes that are unique to that specific geographic region/place of origin.
- India became a signatory to this convention, when, as a member of WTO, it enacted the Geographical Indications (Registration and Protection) Act, 1999, which came into effect on September 15, 2003.
- To protect the GI of goods, a GI registry has been established to administer the GI of Goods (Registration and Protection) Act, 1999, under the Controller General of Patents, Designs & Trade Marks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Panini, Language Machine
Mains level: Not Much
A grammatical problem by Panini that has defeated Sanskrit scholars since the 5th Century BC has finally been solved by an Indian Ph.D. student at the University of Cambridge.
Who was Panini?
- Panini was a Sanskrit philologist, grammarian, and revered scholar in ancient India, variously dated between the 6th and 4th century BCE.
- Since the discovery and publication of his work by European scholars in the nineteenth century, Panini has been considered the “first descriptive linguist” and even labelled as “the father of linguistics”.
- Panini’s grammar was influential on such foundational linguists as Ferdinand de Saussure and Leonard Bloomfield.
Major literary works
- Panini is known for his texts- Astadhyayi, a sutra-style treatise on Sanskrit grammar, verses or rules on linguistics, syntax and semantics in “eight chapters” which is the foundational text of the Vyakarna branch of the Vedanga.
- His text attracted numerous bhashya (commentaries), of which Patanjali’s Mahabhashya is the most famous.
- His ideas influenced and attracted commentaries from scholars of other Indian religions such as Buddhism.
What is the recent breakthrough?
- Panini had an extraordinary mind and he built a language machine unrivaled in human history.
- The 2,500-year-old algorithm decoded by him makes it possible, for the first time, to accurately use Panini’s so-called “language machine”.
- This discovery makes it possible to “derive” any Sanskrit word, to construct millions of grammatically correct words, using Panini’s language machine.
- This is widely considered to be one of the greatest intellectual achievements in history.
How does this language machine works?
- Panini’s system – 4,000 rules detailed in his renowned work, the Astadhyayi, which is thought to have been written around 500 BC – is meant to work like a machine.
- Feed in the base and suffix of a word and it should turn them into grammatically correct words and sentences through a step-by-step process.
Significance of this development
- A major implication of the recent discovery is that now there is an algorithm that runs Panini’s grammar.
- We can potentially teach this grammar to computers.
- Computer scientists working on Natural Language Processing (NLP) gave up on rule-based approaches over 50 years ago.
- NLP is a branch of Artificial Intelligence (AI) and Machine Learning.
- So teaching computers how to combine the speaker’s intention with Panini’s rule-based grammar to produce human speech would be a major milestone in the history of human interaction with machines.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: BH Series
Mains level: Not Much
The Ministry of Road Transport and Highway has notified new rules to further increase the scope of implementation of the BH series registrations for vehicles.
What is the update?
The transport ministry has proposed new rules that would permit transfer of vehicles with BH series registration mark to other persons, who are eligible or ineligible for the getting the series.
What is Bharat series (BH-series)?
- There was a procedure of re-registration of a vehicle while moving to another state.
- A vehicle bearing BH registration mark shall not require assignment of a new registration mark when the owner of the vehicle shifts from one State to another.
- Format of Bharat series (BH-series) Registration Mark –
Registration Mark Format:
- YY BH #### XX
- YY – Year of first registration
- BH- Code for Bharat Series
- ####- 0000 to 9999 (randomized)
- XX- Alphabets (AA to ZZ)
Why such move?
- Station relocation occurs with both Government and private sector employees.
- Such movements create a sense of unease in the minds of such employees with regard to transfer of registration from the parent state to another state.
- Under section 47 of the Motor Vehicles Act, 1988, a person is allowed to keep the vehicle for not more than 12 months in any state other than the state where the vehicle is registered.
Who can get this BH series?
- BH-series will be available on voluntary basis to Defense personnel, employees of Central Government/ State Government/ Central/ State PSUs and private sector companies/organizations.
- The motor vehicle tax will be levied for two years or in multiple of two.
- This scheme will facilitate free movement of personal vehicles across States/UTs of India upon relocation to a new State/UT.
- After completion of the fourteenth year, the motor vehicle tax shall be levied annually which shall be half of the amount which was charged earlier for that vehicle.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Addressing the issues of Students pressure, suicides, reasons and way ahead
Context
- Three students committed suicide within 12 hours in Rajasthan’s Kota, which is regarded as the education and coaching hub of India. Known for producing IITians, doctors and engineers, Kota has been in the news for the last few years because of the students’ suicides and depression they suffer.
What is Suicide?
- Suicide is the act of intentionally causing one’s own death.
- Mental and physical disorders, substance abuse, anxiety and depression are risk factors.
- Some suicides are impulsive acts due to stress (such as from financial or academic difficulties), relationship problems (such as breakups or divorces), or harassment and bullying.
- Despite being entirely preventable, India has been increasingly losing individuals to suicide.
The National Crime Records Bureau’s Accidental Deaths and Suicide in India report 2021.
- The report released this year shows that the number of students’ deaths by suicide rose by 4.5 per cent in 2021.
- Maharashtra bearing the highest toll with 1,834 deaths, followed by Madhya Pradesh with 1,308, and Tamil Nadu with 1,246.
- According to the report, student suicides have been rising steadily for the last five years.
- According to a 2012 Lancet report, suicide rates in India are highest in the 15-29 age group the youth population.
- According to the National Crime Record Bureau (NCRB), in 2020, a student took their own life every 42 minutes; that is, every day, more than 34 students died by suicide.
What are the reasons behind these alarming stats of student’s suicide in India?
- Education is for livelihood more than knowledge: Education in India has been viewed as a gateway to employment and livelihood rather than to knowledge.
- Pressure to get into government jobs or highly paid private sector: Many students and their families dream of the coveted ‘sarkari naukri’ (government job) to escape the precarious social, caste and class predicaments they find themselves in.
- Limited educational infrastructure: The failure of the Union government to improve the country’s educational infrastructure means that exam-oriented coaching had become the norm.
- Coaching centres as prisons for many students: Cashing in on the ‘hope for a better future,’ coaching centres emerged as one of the predominant industries in the education sector. However, these centres are now being seen as prisons for the many youngsters who join them; where their bodies, souls and dreams are tamed.
- Number of factors marginalising students who are already vulnerable: Students from marginalised sections are pushed further to the margins through a number of factors, such as the lack of English-medium education; private institutions charging high fees; poor quality education in government-run schools and institutes; ever-growing economic inequality; graduates not having the adequate skills to secure jobs; and caste discrimination.
- Social ideology of success and failure: The rise of neoliberalism as an economic and social ideology has pushed the youth to blame themselves for their failure to secure their ‘dream job’ while the government continues to shirk its basic responsibility.
- Flawed neoliberal agenda for failure and success: The neo-liberal agenda keeps propagating the belief that it is not that hard to find success if one works hard enough, normalising the notion that the youth should blame themselves for their ‘failures’.
- The myth of the Indian family being supportive also need to be called out: Family, being the primary social unit of the society, shapes the aspirations and dreams of the youth. Family should be supportive in true sense.
- Deeper introspection is needed instead of make shift solutions: Deeper introspection on structural aspects of the education system is the need of the hour. Instead, we take pride in coming up with Jugaad (makeshift solutions) to manage affairs peripherally, without dealing with the root of problem.
- Easing pressure in the students: Others have suggested like the guidelines issued by the Board of Intermediate Education in Andhra Pradesh in 2017 to ease the pressure on students, including yoga and physical exercise classes and maintaining a healthy student-teacher ratio.
- Realising today’s realities and making changes: It is painfully evident that the failure to address the larger issue of a punishing education system that is simply not designed to support young minds or prepare them for today’s economic realities continues.
- Collective responsibility: Not only family plays a significant role in students life, even the society has a huge influence. We as a society should realise true essence of life and not confine students into success and failure tags. Instead support them empathically in realising their true potential.
Did you know this solution? What any sensitive person will think of this?
- Some suggested bordering on the ludicrous, like the Indian Institute of Science’s reported move last year to replace ceiling fans in hostel rooms with those that are wall-mounted.
Conclusion
- Scholars have long linked farmers’ suicides to India’s agrarian crisis; it is time that civil society starts looking at students’ suicides as an indicator of a grave crisis of the country’s educational structure, including the institutional structure, curriculum, and the like. The combination of a large population of young people with rising aspirations and an economy with shrinking opportunities has created a public health crisis that requires urgent attention.
Mains Question
Q. There has been a steady increase in student suicides in India over the past few years. What are the reasons and suggest what should be done?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Concept of CAD
Mains level: India's problem of CAD, effects and solutions
Context
- There seems to be considerable optimism about India’s near-term growth prospects now that the major global energy and commodity shocks have subsided. Even if these shocks have subsided, India still faces one big problem of its large current account deficit (CAD). How will this be managed? It turns out that the answer to both questions lies in one word exports.
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What is Current Account Deficit (CAD)?
- A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
- This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
- A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.
- CAD = Trade Deficit + Net Income from Abroad + Net transfers
- Swelling CAD: Over the past year, the post-pandemic normalisation has caused the current account deficit to swell to exceptional proportions.
- Decline in demand abroad: At home, normalisation has spurred a renewed demand for imported inputs. But abroad, it has had the opposite effect, leading to a decline in demand.
- India’s import soared while exports fell: Foreign households are no longer demanding so many goods now that the lockdowns that kept them in their houses and the fiscal stimuli that gave them the money to spend have both ended. So, India’s imports have soared just at a time when its merchandise exports have started to fall.
- Statistics for instance: The difference between the value of goods imported and exported fell to $54.48 million in Q4FY 2021-22 from $59.75 million in Q3 FY2021-22.
- Service sector is saviour: However, based on robust performance by computer and business services, net service receipts rose both sequentially and, on a year, -on-year basis.
Future projections
- Looking ahead, the situation seems set to worsen: Foreign demand will slow further as advanced countries slip into what now seem like inevitable recessions.
- In the backdrop of recession India’s CAD could widen further: In that case, India’s CAD could widen even further, possibly to four per cent of GDP in 2022-23, double the level that the Reserve Bank of India (RBI) traditionally regards as “safe”.
Analysis: How should India respond?
- Attracting foreign capital inflow: Attract foreign capital inflows worth at least four per cent of GDP.
- Is this realistic in time of global uncertainty: The world is currently facing unprecedented levels of uncertainty. Two years of the pandemic, now a land war in Europe, inflation and energy crisis in Europe, interest rate hikes in the history of the US Federal Reserve, slowdown in china, etc. In such an uncertain environment, foreign investors prefer to invest in safe assets such as US government bonds rather than emerging markets like India. As a result, India has witnessed large outflows of foreign capital in 2022-23
- Deploying RBI’s Forex to pay for imports: If India cannot attract the required amount of capital inflows, the RBI’s foreign exchange reserves could be deployed to pay for imports.
- Is this strategy sustainable: The country’s reserves are meant to tide the country over short-term problems, such as commodity price spikes. India’s merchandise exports have been structurally weak, stagnating for the past decade, until the pandemic induced a short-lived boom.
How depreciating rupee could be helpful?
- Price needs to be adjusted by depreciating rupee: This means that something fundamental needs to change. Ultimately, India’s CAD reflects a mismatch between the demand and supply of foreign exchange. To restore balance, first and foremost, the price needs to adjust, that is, the rupee needs to depreciate.
- Exporting becomes more profitable: When this happens, exporting becomes more profitable, inducing more and more firms to explore foreign markets. Meanwhile, foreign demand improves, because the rupee depreciation makes India’s products more price-competitive. As a result, exports increase and the CAD falls.
- Exchange rate depreciation is helpful in sustained growth: The recovery of the Indian economy from the pandemic was largely fuelled by exports. But with exports now declining, this crucial source of growth has now become uncertain for India. Strengthening the export sector is, therefore, critical for sustaining growth.
Way forward
- Allow the rupee to depreciate,
- Encourage foreign firms to produce in India by letting them access their supply chains,
- Encourage domestic firms to step up to the competition, and
- Create a level playing field for all players.
Conclusion
- The large CAD, however, is not a short-term problem: It is a long-term problem requiring a long-term solution. By adopting the discussed strategy, India could potentially solve its two most important macroeconomic problems that are reducing the large CAD and securing rapid, sustained growth.
Mains question
Q. What is Current account deficit (CAD)? In a time of global uncertainty How India can reduce its large CAD and secure sustained growth. Analyze
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Important aspects of the Data protection bill
Context
- On November 18th Government released the fourth iteration of the data privacy legislation: The Digital Personal Data Protection Bill, 2022 (Bill).
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- The journey towards data protection legislation began in 2011 when the department of Personnel and Training initiated discussions on the Right to Privacy Bill, 2011.
- The major fillip to the data protection case was given by the K. Puttuswamy judgment, 2017 where the supreme court held the “Right to privacy” as a fundamental right under Article 21- right to life and personal liberty.
- After the Puttaswamy judgment, the government-appointed B.N Srikrishna committee the drafting of a law for data protection and privacy. This led to the Justice B.N. Srikrishna committee report which later on led to the Personal Data Protection Bill of 2019.
Two major stakeholders of the Legislation Data principles and data Fiduciary
- Data Principle: Data principles refers to the subject whose data is being processed. While the Bill lists the “duties” of the Data Principals, these have no bearing on the realisation of the rights provided by the Bill.
- Data Fiduciary: It is an entity that processes this data. The drafters of the Bill seem to be affirming that the Data Fiduciary is responsible for safeguarding the interests of Data Principals.
- What is Data Fiduciary: The use of the term, “fiduciary” whilst referring to a data processor is significant. In different spheres of the law, when one party owes a “fiduciary” duty towards another a trustee, beneficiary, guardian or ward, the relationship between the two is guided by trust, assurance and good faith.
- Obligations of data fiduciaries towards data principles: In line with this philosophy, the rest of the Bill describes the obligations of the Data Fiduciaries towards Data Principals, the rights and duties of the latter and the regulatory framework through which data will be processed.
Two noteworthy aspects of the Bill
- Bill outlined the category of Data fiduciaries: In addition to the general obligations to prevent the misuse of the personal data of individuals, the Bill has outlined a category of Significant Data Fiduciaries, entities that are required to comply with additional measures to safeguard the personal data of individuals.
- Why is this distinction being necessary: This distinction is essential as only companies that process vast amounts of data or have a potential impact on the country’s sovereignty and integrity need to take such stringent measures. Such measures reduce the compliance cost of companies that are at a nascent stage.
- Relaxing Data localisation norms: Onerous provisions on “data localisation” in the previous versions of the Bill, which mandated companies to store user data only within India, have been omitted.
- How this move will maintain balance: The reworked Bill permits the government to notify countries to which data transfers may be permitted. This is a major respite for several tech companies, who have long talked about the infeasibility of the data localisation provisions. A balance has now been struck between the legitimate concerns of businesses and the protection of personal data of individuals.
Where else does this bill need attention?
- Focus remains only on the nature and gravity of the violation: While the Bill is, by and large, comprehensive. Section 25 and Schedule I, that deal with penalties, require elaboration. Section 25 refers to the quantum of financial penalty that must be imposed on a person guilty of non-compliance in matters related to detail. The focus remains only on the nature and gravity of the violation. The proposed legislation does not consider the financial ranking of a company before imposing penalties.
- The bill must take financial ranking of the company in consideration: The Bill must ensure that the penalties imposed are proportionate to the size and operations of a company, to be effective, fines must not drive companies into economic loss.
- For instance: A leaf can be taken from the European Union’s General Data Protection Regulation (GDPR), amongst other similar regulations, which levies penalties in accordance with the total turnover of companies.
What makes this bill distinct and comprehensive?
- Promoting cooperation: The Bill safeguards individual data, whilst also promoting cooperation between data fiduciaries and the government.
- As per the India’s requirements: While it draws upon the best practices of foreign jurisdictions, such as Europe and Australia, it has been drafted in a manner that is tailor-made to India’s requirements.
- Exemptions are restrictive: Even the exemptions granted to the Centre are extremely restrictive and in sync with past judicial precedents and Article 19(2) of the Constitution.
- Significant shift in drafting legislation: The Bill marks a significant shift in the manner of drafting legislation. Historically, comprehending a piece of legislation in India has usually been akin to the membership of an exclusive club only legal practitioners, policy professionals and a handful of politicians are able to understand and interpret laws.
- Ensures simplification and accessibility to ordinary citizens: This Bill marks a transition from legalese to legal simplification, it realises that it is in our best interests to ensure that all laws especially legislation that have a significant impact on citizens are made accessible to all individuals irrespective of their professional or educational standing.
Conclusion
- The Bill safeguards individual data, whilst also promoting cooperation between data fiduciaries and the government. While it draws upon the best practices of foreign jurisdictions, it has been drafted in a manner that is tailor-made to India’s requirements. Exemptions granted to the Centre are extremely restrictive.
Mains Question
Q. What are the salient aspects of the Digital Personal Data Protection Bill? Discuss what makes it unique and inclusive.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: Uniform Civil Code
States are empowered to enact personal laws that decide issues such as succession, marriage and divorce, in their endeavor to secure a uniform civil code (UCC), Law Minister informed the Rajya Sabha.
What did Law Minister say?
- Personal laws such as intestacy and succession; wills; joint family and partition; marriage and divorce, relate to Entry 5 of List-III-Concurrent List of the Seventh Schedule to the Constitution.
- Hence, the States are also empowered to legislate upon them.
- And many states are announcing the implementation of UCC in the election manifestos.
What is a Uniform Civil Code (UCC)?
- A UCC is one that would provide for one personal civil law for the entire country.
- This would be applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption etc.
Basis for UCC
- Article 44, one of the Directive Principles of the Constitution lays down that the state shall endeavour to secure a UCC for the citizens throughout the territory of India.
- These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.
UCC vs. Right to Freedom of Religion
- Article 25 lays down an individual’s fundamental right to religion
- Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”
- Article 29 defines the right to conserve distinctive culture
Reasonable restrictions on the Freedom of Religion
- An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to FRs, but a group’s freedom under Article 26 has not been subjected to other FRs.
- In the Constituent Assembly, there was division on the issue of putting UCC in the fundamental rights chapter. The matter was settled by a vote.
- By a 5:4 majority, the fundamental rights sub-committee headed by Sardar Patel held that the provision was outside the scope of FRs and therefore the UCC was made less important.
Enacting and Enforcing UCC
- Fundamental rights are enforceable in a court of law.
- While Article 44 uses the words “state shall endeavour”, other Articles in the ‘Directive Principles’ chapter use words such as “in particular strive”; “shall in particular direct its policy”; “shall be obligation of the state” etc.
- Article 43 mentions “state shall endeavour by suitable legislation” while the phrase “by suitable legislation” is absent in Article 44.
- All this implies that the duty of the state is greater in other directive principles than in Article 44.
What are more important — fundamental rights or directive principles?
- There is no doubt that fundamental rights are more important.
- The Supreme Court held in Minerva Mills (1980): Indian Constitution is founded on the bed-rock of the balance between Parts III (Fundamental Rights) and IV (Directive Principles).
- To give absolute primacy to one over the other is to disturb the harmony of the Constitution.
- Article 31C inserted by the 42nd Amendment in 1976, however, lays down that if a law is made to implement any directive principle, it cannot be challenged on the ground of being violative of the FRs under Articles 14 and 19.
What about Personal Laws?
- Citizens belonging to different religions and denominations follow different property and matrimonial laws which are an affront to the nation’s unity.
- If the framers of the Constitution had intended to have a UCC, they would have given exclusive jurisdiction to Parliament in respect of personal laws, by including this subject in the Union List.
- “Personal Laws” are mentioned in the Concurrent List.
Various customary laws
- All Hindus of the country are not governed by one law, nor are all Muslims or all Christians.
- Muslims of Kashmir were governed by a customary law, which in many ways was at variance with Muslim Personal Law in the rest of the country and was, in fact, closer to Hindu law.
- Even on registration of marriage among Muslims, laws differ from place to place.
- In the Northeast, there are more than 200 tribes with their own varied customary laws.
- The Constitution itself protects local customs in Nagaland. Similar protections are enjoyed by Meghalaya and Mizoram.
- Even reformed Hindu law, in spite of codification, protects customary practices.
Why need UCC?
- UCC would provide equal status to all citizens
- It would promote gender parity in Indian society.
- UCC would accommodate the aspirations of the young population who imbibe liberal ideology.
- Its implementation would thus support the national integration.
Hurdles to UCC implementation
- There are practical difficulties due to religious and cultural diversity in India.
- The UCC is often perceived by the minorities as an encroachment of religious freedom.
- It is often regarded as interference of the state in personal matters of the minorities.
- Experts often argue that the time is not ripe for Indian society to embrace such UCC.
These questions need to be addressed which are being completely ignored in the present din around UCC.
- Firstly, how can uniformity in personal laws are brought without disturbing the distinct essence of each and every component of the society.
- Secondly, what makes us believe that practices of one community are backward and unjust?
- Thirdly, has other uniformities been able to eradicate inequalities which diminish the status of our society as a whole?
Way forward
- It should be the duty of the religious intelligentia to educate the community about its rights and obligations based on modern liberal interpretations.
- A good environment for the UCC must be prepared by the government by explaining the contents and significance of Article 44 taking all into confidence.
- Social reforms are not overnight but gradual phenomenon. They are often vulnerable to media evils such as fake news and disinformation.
- Social harmony and cultural fabric of our nation must be the priority.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Social Progress Index (SPI)
Mains level: Read the attached story
Economic Advisory Council to Prime Minister (EAC-PM) will release the Social Progress Index (SPI) for states and districts of India on December 20, 2022.
Social Progress Index (SPI) Report
- SPI is a comprehensive tool intended to be a holistic measure of the Social Progress made by the country at the national and sub-national levels.
- The report has been prepared by Institute for Competitiveness, headed by Dr Amit Kapoor and the Social Progress Imperative, headed by Michael Green.
- It was mandated by Economic Advisory Council to the Prime Minister of India.
Objectives of the report
- With state and district-wise rankings and scorecards, the report aims to provide a systematic account of the social progress made at all levels in the country.
- The report also sheds light on the achievements of the districts that have performed well on the index and the role of the states in achieving social progress.
- A special section of the report provides an analysis of the Aspirational Districts of India, leading to a broader understanding of the social progress at the grassroots level.
- The report will act as a critical enabler and tool for policymakers in the coming years for achieving sustained socio-economic growth.
Components of SPI
SPI assesses the performance of states and districts on three dimensions of social progress:
- Basic Human Needs: It assesses the performance of states and districts in terms of Nutrition and Basic Medical Care, Water and Sanitation, Personal Safety and Shelter.
- Foundations of Wellbeing: It evaluates the progress made by the country across the components of Access to Basic Knowledge, Access to Information and Communication, Health and Wellness, and Environmental Quality.
- Opportunity: It focuses on aspects of Personal Rights, Personal Freedom and Choice, Inclusiveness, and Access to Advanced Education.
(This newscard will be updated once the report is published.)
Need for SPI
- GDP is not a holistic measure of a nation’s development: It would be incorrect to state that the economic progress is completely divorced from progress made in areas mentioned above.
- Social outcomes of developmental economics: The primary goal of the SPI is to provide a rigorous tool to benchmark progress and stimulate progress within countries.
- No single holistic parameter available: Several indicators, like GHI and HDI, go beyond GDP, but none captures social progress as finely as SPI.
- Doing away with biased reports: India does not display a respectable position in the index, as even the small neighbours like Nepal have a better rank. India is also the lowest rank holder in BRICS.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CPJ Report
Mains level: Freedom of press
The number of journalists jailed around the world for practicing their profession has touched a record high, with 363 reporters deprived of their freedom as of December 1, 2022, according to the 2022 prison census released by the Committee to Protect Journalists (CPJ).
About Committee to Protect Journalists (CPJ)
- The CPJ is an American independent non-profit, non-governmental organization, based in New York City, New York, with correspondents around the world.
- CPJ promotes press freedom and defends the rights of journalists.
- It is often called as the “Journalism’s Red Cross.”
- Since late 1980s, the organization has been publishing an annual census of journalists killed or imprisoned in relation to their work.
Key highlights of CPJ report
- This year’s top five jailers of journalists were Iran, China, Myanmar, Turkey, and Belarus, respectively.
- New ‘fake news’ laws, criminal defamation, and abuse of judiciary are also tactics used to clamp down on press freedom.
- This year’s top five jailers of journalists were Iran, China, Myanmar, Turkey, and Belarus, respectively.
- These govt aimed to keep the lid on broiling discontent in a world disrupted by COVID-19 and the economic fallout from Russia’s war on Ukraine.
- In China, too, another ‘worst offender’, many imprisoned journalists were Uighurs from Xinjiang.
What did it say about India?
India continues to draw criticism over its treatment of the media, in particular its use of-
- Jammu and Kashmir Public Safety Act,
- Preventive detention law- to keep journalists behind bars after they were granted court-ordered bail in separate cases,
- Terrorism-related Unlawful Activities (Prevention) Act to investigate and charge the journalists.
Why does this report matter?
- Earlier this year, India has reached 150th position in the World Press Freedom Index, dropping further from its last year’s 142nd rank out of 180 countries.
- The safety of journalists is a grave concern in the Indian media landscape.
Conclusion
- The right occasion to deliberate about the much-needed reforms in the media ecosystem in the country is due.
- Establishing plurality in ownership, better legal frameworks to protect journalists, and steps to reduce the influence of vested interest groups in Media operations are the immediate steps required.
Back2Basics: Freedom of Press and Constitutional Provisions
- The Supreme Court in Romesh Thappar v. the State of Madras, 1950 observed that freedom of the press lay at the foundation of all democratic organisations.
- It is guaranteed under the freedom of speech and expression under Article 19, which deals with ‘Protection of certain rights regarding freedom of speech, etc.
- Freedom of the press is not expressly protected by the Indian legal system but it is impliedly protected under article 19(1) (a) of the constitution.
- The freedom of the press is also not absolute.
Reasonable restrictions
- A law could impose only those restrictions on the exercise of this right, it faces certain restrictions under article 19(2), which is as follows:
- Sovereignty and integrity of India
- Security of the State,
- Friendly relations with foreign States
- Public order, decency or morality
- Contempt of court
- Defamation
- Incitement to an offence
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agni Missiles
Mains level: LAC skirmishes
India successfully carried out the night trials of the Agni V nuclear-capable ballistic missile days after Indian and Chinese troops clashed in Tawang district of Arunachal Pradesh.
Why in news?
- It was a midnight test fire.
- And there are rumours about the increased range and stealth capabilities of Agni-V missile.
Agni Missiles
- Agni missiles are long range, nuclear weapons capable surface to surface ballistic missile.
- The first missile of the series, Agni-I was developed under the Integrated Guided Missile Development Program (IGMDP) and tested in 1989.
- After its success, Agni missile program was separated from the IGMDP upon realizing its strategic importance.
- It was designated as a special program in India’s defence budget and provided adequate funds for subsequent development.
Variants of Agni missiles
- Agni I: It is a Medium Range Ballistic Missile with a Range of 700-800 km.
- Agni II: It is also a Medium Range Ballistic Missile with a Range more than 2000 km.
- Agni III: It is also an Inter-Medium Range Ballistic Missile with Range of more than 2,500 Km
- Agni IV: It is also an Inter-Medium Range Ballistic Missile with Range is more than 3,500 km and can fire from a road mobile launcher.
- Agni-V: Currently it is the longest of Agni series, an Inter-Continental Ballistic Missile (ICBM) with a range of over 5,000 km.
- Agni- VI: The longest of the Agni series, an Inter-Continental Ballistic Missile (ICBM) with a range of ICBM 11,000–12,000 km.
Strategic significance of Agni Missiles
- The success of AGNI missiles is in line with India’s stated policy to have ‘credible minimum deterrence’ that underpins the commitment to ‘No First Use’.
- What makes Agni 5 agile is that it is a “canisterised” missile. It means that the missile can be launched from road and rail platforms, making it easier for it to be deployed and launched at a quicker pace.
- The canisterisation also gives the missile a longer shelf life, protecting it from the harsher climatic conditions.
- While India is among the handful of nations with ICBM capability.
- The next generation of the missile, Agni VI, under development, is expected to have a range of around 8,000 km.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Women empowerment and Political Participation
Context
- On the occasion of the 75th year of India’s independence, the Prime Minister articulated a bold vision that in the coming 25 years, “Nari Shakti” would play a vital role in India’s socio-economic developmental journey.
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Background: Status of women In India
- Elevated status in ancient texts and thoughts: Culturally and mythologically, women have enjoyed an elevated status in India. For example, it is mentioned in the Kena Upanishad that it was the goddess Uma who enlightened the three powerful but ignorant gods, Indra, Vayu, and Agni, to the profound mystery of Brahman.
- Experience of women in modern era is far from ideal: Women have faced discrimination in the household and at jobs, and for a long time, they were victims of political indifference and neglect.
- Recognizing the Nari Shakti: In recent decades, “Nari Shakti” has been reasserted through micro and silent revolutions. There are some silent women-led changes transforming our society politically and economically But there is need to highlight the challenges that remain in women fulfilling their true potential as modern nation-builders of India.
- Gender gap in voter turnout is diminishing rapidly as women often exceeds male voter turnout: Research on women voters using historical data has revealed that since 2010, the gender gap in voter turnout has diminished significantly and the recent trends show women voter turnout often exceeds male voter turnout. This massive increase is a nationwide phenomenon and is also observed in less developed regions of the country where traditionally, the status of women has been significantly lower.
- Dramatic increase in women contesting election particularly in panchayat level: Since 2010, many more women have been contesting elections. To put this in perspective, in the 1950s, in the state assembly elections, women contested elections in approximately 7 per cent of the constituencies, but by the 2010s, women were competing in 54 per cent of the constituencies. This is particularly remarkable at the grass roots panchayat level where 50 per cent seats have been reserved for women for over a decade now.
Results of this positive change
- Women voters can no longer be neglected or marginalized: A key implication of this is that women voters can no longer be marginalised or neglected; they demand respect and command attention.
- Political entrepreneurs compelled to address women issues: This silent revolution has compelled political entrepreneurs and grounded leaders to design policies addressing issues that women care about. It is not surprising that some of the most dramatic policy changes concerning poverty reduction since 2015-16 have been in the form of networking of households across the nation through amenities such as cooking fuel, sanitation, water, and electricity. These are also the key drivers of long-term economic growth.
- Rising women voters compelled political parties to make law and order a critical issue: In less developed regions where women and children have been the biggest victims of lawlessness, the silent revolution of rising women voters has compelled political parties to make law and order a critical political issue.
- Positive response by political parties: Political parties and leaders are now responding to this by improving access and affordability to basic needs of ordinary people like amenities and infrastructure rather than focusing on the rhetoric of caste and communalism. This is in sharp contrast to the “democratic recession” that is being experienced in the rest of the world.
Challenges ahead
- Women employment a biggest challenge: According to World Bank data, the female labour force participation rate has declined from 32 per cent in 2005 to 19 per cent in 2022. Labour force participation does not consider unpaid domestic services, which include household services such as taking care of the children and the elderly.
- More hours spent is in unpaid domestic services: Our research based on data from the time use surveys in India in 2018–19 reveals that women in the age group of 25 to 59 years spend approximately seven hours daily in unpaid domestic services.
- Double burden of working is one of the reasons behind decline of women labour participation: Double burden of working women perhaps is one of the critical reasons for the decline in the women’s labour force participation rate. In sharp contrast, working or non-working men in the same age group spend less than 45 minutes on unpaid domestic or caregiving services.
- Declined fertility rate: Fertility rates have declined dramatically below the replacement rate, the share of the ageing population has increased, and there is an alarming increase in the percentage of kinless elderly.
Did you know Baumol Cost Disease?
- The care industry is labour-intensive and, therefore, subject to Baumol Cost Disease, implying that the cost of providing care would keep rising over time.
Way ahead
- On labour force participation: It is essential to look at the experience of advanced countries, where increased participation of women in the labour force has come at the expense of family structure.
- On dynamics of household and elderly care, sharing burden by men is a necessity: If we want more women to participate in the labour force, and at the same time preserve the family structure, then men would have to share the burden of unpaid domestic services. This would require a break from tradition and the creation of new modern narratives and myths.
Conclusion
- As India takes over the presidency of G20, it is an occasion to celebrate “Nari Shakti” and political empowerment a stupendous increase in women voter turnout in the decade has strengthened and made our democracy more progressive. Women’s political empowerment has been a bottom-up revolution in India and holds lessons for other countries.
Mains question
Q. Culturally and mythologically, women hold a high position in India. However, there are still challenges in women fulfilling their true potential as India’s modern nation-builders. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basics of Budget
Mains level: Capital expenditure and fiscal consolidation
Context
- The 2023-24 Union budget will be announced on February 1, followed by the states’ respective budgets. These budgets will set the policy tone for the rest of the year and, as such, are followed closely.
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Situation of Capex and fiscal consolidation after pandemic
- Rise in fiscal deficit: The overall fiscal deficit of the government has soared and we believe the next few years will be all about getting it back on track.
- Rising interest payments: This is important because interest payments on past debt make up a whopping 50 per cent of net tax revenues for the central government, leaving very little room for other spending.
- less room for social spending: Given the needs of the economy on various fronts like health, education and capex, it is important to lower the interest burden over time. That can only be achieved by fiscal consolidation.
Analysing the tax revenue and expenditure of central and state Government
- Central government tax revenues have risen faster than state revenues: Both benefitted as small and informal firms struggled with the lockdowns and lost market share to large firms, which tend to pay more taxes.
- Disparity in revenue collection: A large chunk of the tax revenues in the early part of the pandemic period came from the “special” duty and surcharge on oil, which went primarily to the central government. To be fair, the central government subsequently cut the duty on oil (in both 2021-22 and 2022-23) and the tax share that went to the states rose somewhat.
- Capex of centre is more: The Centre has committed to more current expenditure than the states. While it increased across the board during the pandemic, current expenditure rose more for the central government.
- Higher spending on social schemes: This was led by higher social welfare spending (for instance, on the free food distribution scheme) and, more recently, higher subsidies (for example, fertilisers) in the face of rising commodity prices.
- States have a moderate capex: The common perception is that states have gone all out on unsustainable current expenditure. But the data shows that it’s just a few states which have spent heavily (for example, Telangana, Assam, West Bengal and Punjab).
- The central government capex has risen but state capex has contracted: Making a commendable choice, the central government used both its tax bounty as well as its ability to borrow more at a time when banking sector liquidity was loose to raise capex spending, which rose by 1.2 per cent of GDP between 2019-20 and 2021-22.
- Cut in state capex: On the other hand, the states cut back on capex, which has fallen as a percentage of GDP over the last few years, and continues to be on a weak footing in the current year. In fact, putting the central government’s capex alongside the state and public sector capex shows that the overall public sector thrust is not any stronger than it was back in 2018-19.
- Centre has breached the fiscal deficit target: The central government’s fiscal deficit has overshot targets while the state deficit is relatively contained. At a budgeted 6.4 per cent of GDP in 2022-23, the central government’s fiscal deficit has risen above the pre-pandemic level of 3.4 per cent in 2018-19, and is well above the 3 per cent medium-term target.
- Sharp fall in states fiscal deficit target: Even though the state fiscal deficit rose in the first year of the pandemic (from 2.5 per cent of GDP in 2018-19 to 3.8 per cent in 2020-21), it has fallen sharply since (to 2.7 per cent in 2021-22).
- Low borrowing by states: In fact, state government borrowing is rather low in the current year so far. If this continues, the fiscal deficit could be even lower in 2022-23 (around 2.5 per cent of GDP), which is well under the 3 per cent medium-term target, and bang in line with pre-pandemic levels.
What are the challenges?
- Less consolidation by states: The states have less fiscal consolidation to do than the central government.
- High quality spending: Both have a common challenge to commit to more capex, which is considered high quality spending as it “crowds in” private investment if done responsibly. And we believe investment is the only sustainable way to increase the capacity of the economy to grow and create jobs.
- Balancing the capex and fiscal consolidation: For the central government, the challenge is to hold on to its capex push at a time of fiscal consolidation. For the states, the challenge is to start doing more.
What should be the way forward?
- Lowering the fiscal deficit: The central government’s aim is to lower the fiscal deficit by about 2 per cent of GDP over the next three years. About half of this consolidation can come from lowering current expenditure to pre-pandemic levels.
- Raising the tax revenue through formalization: Continued formalisation of the economy that raises tax revenues (though “organic” formalisation will likely be more sustainable than “forced” formalisation).
- Disinvestment of PSUs: A bigger push for disinvestment by selling stakes in public-owned companies, and further tax reforms (in terms of direct taxes and the GST).
- Capex cut is the last option: If these don’t work, the default option will be to cut capex, which is a concern as it has implications for medium-term growth.
Conclusion
- Fiscal consolidation and capital expenditure should go hand in hand. More government spending means more infrastructure building and more chances of growth and employment. However, this spending should be done with sound fiscal base.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Census in colonial rule
Mains level: Impact of colonial rule
Context
- A recent study of India’s experience under colonial rule by Dylan Sullivan and Jason Hickel concludes that data from the Census of India reveal that between 1880 and 1920 approximately 100 million Indians died due to British policy in India. Their method is to calculate the excess mortality, being the difference between the actual deaths and the deaths that may be expected.
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What are assumptions made by their study?
- Mortality rate before colonial rule: Before colonial rule, the mortality rate of India is unlikely to have been very different from that of contemporary England.
- Deaths due to colonial policies during the period of 1880-1920: The resulting estimates for excess deaths during 1880-1920 are 50 million in the first case and 160 million in the second one, respectively. The authors settle for the midway figure of approximately 100 million for the deaths caused in India due to colonial policy.
- Figure is greater than deaths from famine in other countries: For perspective, they point out that this figure is greater than the death from famine in “the Soviet Union, Maoist China, North Korea, Pol Pot’s Cambodia, and Mengistu’s Ethiopia”. In their view, this provides a direct assessment of the consequences of the Raj for India.
Study quantifying the impact of colonial rule in India
- Change in national income as a basis to quantify impact of colonial rule is non-existent: Attempts to quantify the impact of colonial rule in India have mostly relied on the change in national income. But reliable income data for the nineteenth century are almost non-existent. Population figures, though, are available from the time of the first Census of India in 1871.
- Steady rise in mortality rate: The mortality rate in British India is seen to rise steadily after 1881, recording an increase of close to 20% by 1921. As it is unusual for the mortality rate of a country to rise continuously due to natural causes, this suggests that the living conditions worsened during this period.
- Mortality rate dipped in last census in British India but famine is not recorded: The mortality rate dipped in 1931, which was the last census conducted in British India, but the last famine recorded in the country was yet to come. It took place in Bengal in 1943, in the last five years of the close to two centuries of British colonial rule.
- British arguments for the empire: Arguments include “English forms of land tenure, the English language, banking, the common law, Protestantism, team sports, the limited state, representative assemblies, and the idea of liberty”, have been advanced by the Harvard historian Niall Ferguson.
- No mention of the famines: There is no mention of the famines which started almost at the onset of rule by the East India Company in Bengal, the de-industrialisation of India in the nineteenth century, the drain of wealth, or the worsening food security as India’s peasants were forced to grow commercial crops for export so that Britain could balance its trade.
- Population explosion but the life expectancy increased: The belief that British policy in India caused repeated famines is bolstered by the fact that there has not been a single famine since 1947. This is despite a population explosion following a sharp fall in death rates. The decline in the mortality rate surely signals improved living conditions. The Census shows that in the 1950s, life expectancy at birth of Indians increased by more than it did in the previous seventy years.
Census as a double-edged sword
- Worsening gender inequality in India after 1947: It points to a worsening gender inequality in India. A simple indicator of this would be the ratio of females to males in the population. It is believed that in the absence of factors that lower the life chances of women, including foeticide, this ratio would tend to one. The Census of India shows that we have not attained that level in our recorded history, except in pockets within the country.
- Trend in gender inequality: While this is disturbing in itself what is more so is that this ratio has steadily declined after 1947. After declining for four decades from 1951 it started inching up in 1991. But in 2011, it was yet lower than what it was in 1951.
- Life expectancy faster for man than women: So, even though life expectancy increased soon after Independence, in the early years at least it increased faster for men than it did for women.
Conclusion
- The Census of India not only helps understand the perils of British rule, but also flags the roadblocks lying ahead. As India chants Vasudhaiva Kutumbakam at the G-20, implying that the nations of the world are a family, it behooves us to ensure that all the persons in our own family enjoy the same freedoms.
Mains Question
Q. According to the census of the time discuss the impact of colonial rule in India. The Census of India not only helps understand the perils of British rule, but also flags the roadblocks lying ahead. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PFMS, PAC
Mains level: Read the attached story
The Public Accounts Committee (PAC), in its report found that the tasks related to the implementation of the PFMS appeared to have been dealt with a casual approach and there was no proper financial planning.
Public Finance Management System (PFMS)
- PFMS is an online platform developed and implemented by the office of the Controller General of Accounts (CGA) under the Union Ministry of Finance.
- The PFMS portal is used to make direct payments to beneficiaries of government schemes.
- PFMS initially started as a Plan scheme named CPSMS of the Planning Commission in 2008-09 as a pilot in four States of Madhya Pradesh, Bihar, Punjab and Mizoram.
- It was for four Flagship schemes e.g. MGNREGS, NRHM, SSA and PMGSY.
- In December, 2013 the Union Cabinet approved the national roll out of PFMS for all States.
Mandate of PFMS
PFMS has been mandated the following:
- It acts as a financial management platform for all plan schemes and allows for efficient and effective tracking of fund flow to the lowest level of implementation for the planning scheme of the Government.
- It is mandated to provide information on fund utilization leading to better monitoring, review, and decision support system to enhance public accountability in the implementation of plan schemes.
- To result in effectiveness and economy in Public Finance Management through better cash management for Government transparency in public expenditure and real-time information on resource availability and utilization across schemes.
Achievements of PFMS
- PFMS can be credited to the transformation of Direct Beneficiary Transfers space in financial governance in India.
- An estimated 102 crore DBT transactions were done through PFMS in FY 19-20 amounting to about ₹2.67 lakh crore.
- Through efficient use of technology, PFMS is estimated to have saved about ₹1 lakh crore in direct beneficiary transfers.
Factors that could determine the successful evolution of PFMS in future
- Agility in terms of Onboarding/Integrating all Govt. accounts: Only after ensuring significant coverage, the true execution of the concept will take place.
- Effective data management capabilities: PFMS will have to add significant data management capabilities in order to ensure better monitoring/review to deliver on the idea of a decision support system for effective cash management or management of idle float in the system.
- Constantly upgrading: Adaption to rapid changes in technology is another key area that would call for a considerable amount of focus both in terms of gradation and monitoring.
- Collaboration with the banking system: Lastly, one of the most critical factors for the successful execution of PFMS is its integration with the banking systems.
What did PAC observe now?
- PAC is concerned over data security of PFMS.
- It observed that in the absence of a dedicated workforce, a key strategic system like the PFMS could possibly encounter new threats every now and then owing to the advancements in technology.
- It stressed the need for a thorough assessment of physical and technical infrastructure along with back-up arrangements required in the PFMS scheme.
Conclusion
- The PFMS has revolutionized the ways public finances are managed in the country.
- With constant improvement and increasing coverage, the scope of PFMS is ever-increasing.
Back2Basics: Public Accounts Committee
- The PAC is a committee of selected members of parliament constituted for the purpose of auditing the revenue and the expenditure of the Government of India.
- It was established in 1921 after its first mention in the Government of India Act, 1919.
- PAC is one of the parliamentary committees that examine the annual audit reports of CAG, which the President lays before the Parliament of India.
- It seeks to examines public expenditure.
- Those three reports submitted by CAG are:
- Audit report on appropriation accounts
- Audit report on finance accounts
- Audit report on public undertakings
Its members-
- It consists of not more than twenty-two members, fifteen elected by Lok Sabha and not more than seven members of Rajya Sabha, the upper house of the Parliament.
- The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote.
- None of its members are allowed to be ministers in the government.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: National cybersecurity strategy
The National Security Council Secretariat (NSCS) has formulated a draft National Cyber Security Strategy, which holistically looks at addressing the issue of security of national cyberspace, the government informed the Lok Sabha.
What is the National Cyber Security Strategy?
Conceptualised by the Data Security Council of India (DSCI), the report focuses on 21 areas to ensure a safe, secure, trusted, resilient, and vibrant cyberspace for India.
The main sectors of focus of the report are:
- Large scale digitisation of public services: There needs to be a focus on security in the early stages of design in all digitisation initiatives and for developing institutional capability for assessment, evaluation, certification, and rating of core devices.
- Supply chain security: There should be robust monitoring and mapping of the supply chain of the Integrated circuits (ICT) and electronics products. Product testing and certification needs to be scaled up, and the country’s semiconductor design capabilities must be leveraged globally.
- Critical information infrastructure protection: The supervisory control and data acquisition (SCADA) security should be integrated with enterprise security. A repository of vulnerabilities should also be maintained.
- Digital payments: There should be mapping and modelling of devices and platform deployed, transacting entities, payment flows, interfaces and data exchange as well as threat research and sharing of threat intelligence.
- State-level cyber security: State-level cybersecurity policies and guidelines for security architecture, operations, and governance need to be developed.
What steps does the report suggest?
To implement cybersecurity in the above-listed focus areas, the report lists the following recommendations:
- Budgetary provisions: A minimum allocation of 0.25% of the annual budget, which can be raised up to 1% has been recommended to be set aside for cyber security.
- Ministry-wise allocation: In terms of separate ministries and agencies, 15-20% of the IT/technology expenditure should be earmarked for cybersecurity.
- Setting up a Fund of Funds: The report also suggests setting up a Fund of Funds for cybersecurity and to provide central funding to States to build capabilities in the same field.
- R&D, skill-building and technology development: The report suggests investing in modernisation and digitisation of ICTs, setting up a short and long term agenda for cyber security via outcome-based programs and providing investments in deep-tech cyber security innovation.
- National framework for certifications: Furthermore, a national framework should be devised in collaboration with institutions like the National Skill Development Corporation (NSDC) and ISEA (Information Security Education and Awareness) to provide global professional certifications in security.
- Creating a ‘cyber security services’: The DSCI further recommends creating a ‘cyber security services’ with cadre chosen from the Indian Engineering Services.
- Crisis management: For adequate preparation to handle crisis, the DSCI recommends holding cybersecurity drills which include real-life scenarios with their ramifications. In critical sectors, simulation exercises for cross-border scenarios must be held on an inter-country basis.
- Cyber insurance: Cyber insurance being a yet to be researched field, must have an actuarial science to address cybersecurity risks in business and technology scenarios as well as calculate threat exposures.
- Cyber diplomacy: Cyber diplomacy plays a huge role in shaping India’s global relations. To further better diplomacy, the government should promote brand India as a responsible player in cyber security and also create ‘cyber envoys’ for the key countries/regions.
- Cybercrime investigation: It also suggests charting a five-year roadmap factoring possible technology transformation, setting up exclusive courts to deal with cybercrimes and remove backlog of cybercrimes by increasing centres providing opinion related to digital evidence under section 79A of the IT act.
- Advanced forensic training: Moreover, the DSCI suggests advanced forensic training for agencies to keep up in the age of AI/ML, blockchain, IoT, cloud, automation.
- Cooperation among agencies: Law enforcement and other agencies should partner with their counterparts abroad to seek information of service providers overseas.
What next?
- India has to contend with the importance and necessity of cyber offences as much as cyber defence.
- As of today, India’s primary or possibly only response measures appear to be defensive.
- India has to also invest in more offensive cyber means as a response.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Airport traffic management
As more passengers take to the skies, airports in India’s top cities—Delhi, Mumbai, and Bengaluru—are witnessing heavy traffic.
What is causing congestion at airports?
- There are lengthy queues at airport entry, check-in counters, security, and immigration.
- There is crowding at baggage claim areas too.
- This is the result of an unexpected surge in demand for air travel because of the holiday season—the last two years saw muted demand during this period because of the pandemic.
- Air traffic has been 1-7% above pre-covid levels of 4 lakh daily flyers for the past 10 days.
- Consequently, the personnel strength of CISF at check-in, the number of X-Ray machines and automatic trays for security, as well as baggage belts, have fallen short in handling the demand.
Which airports are most affected?
- The congestion is more severe at airports with maximum connectivity such as Delhi, Mumbai, Bengaluru, and Hyderabad.
- The worst-hit is Delhi—the busiest airport in India and 10th busiest in the world.
- Delhi handles the largest share of international as well as domestic air traffic in the country with a 27% share in international segment for the country and 20% in overall air traffic in India.
- The airport, with three terminals, has a capacity to handle around 70 million passengers per annum.
- Over the last 10 days, the airport has handled over 190,000 passengers daily, which is close to its full capacity.
Is airport congestion an India-specific problem?
- Globally, air travel continues to face disruptions.
- Europe’s busiest airport, London Heathrow, needs to hire around 25,000 staff to manage peak hours.
- Schiphol in Amsterdam has imposed a 20% cap on capacity to manage traffic.
- The aviation industry laid off thousands of people during the pandemic, and expects staff strength to realign by mid-2023.
What is being done to decongest airports?
- The aviation ministry has recommended a reduction in the number of flights and more manpower at all check-in and baggage drop counters.
- It has sought for increasing the number of X-ray machines and baggage trays for security check.
- The government will also analyse manpower requirements at immigration counters and, if required, additional personnel will be deployed.
- IndiGo, the largest airline in India, has asked fliers to report 3.5 hours early for domestic flights from Delhi.
Easing the airport congestion
- There is no immediate solution, and the government’s action plan will only bring temporary relief. Increasing the number of personnel at entry, security, and immigration will take time.
- Higher usage of the contactless travel platform—Digi Yatra—for passengers without check-in luggage is expected to ease the congestion a bit.
- Cities like Delhi and Mumbai need additional infrastructure.
- However, the Jewar airport in Noida and the Navi Mumbai airport are expected to be operational only by 2024.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Beypore Uru, GI Tags in news
Mains level: Not Much
The District Tourism Promotion Council, Kozhikode has applied for a Geographical Indication (GI) tag for the famous Beypore Uru (boat).
Beypore Uru
- Beypore Uru is a wooden dhow (ship / sailing boat / sailing vessel) handcrafted by skilled artisans and carpenters in Beypore, Kerala.
- They are a symbol of Kerala’s trade relations and friendship with the Gulf countries.
- It is purely made of premium wood, without using any modern techniques.
- The wood used is still sawed the traditional way which requires immense expertise.
- It takes anywhere between 1-4 years to build each Uru and the entire process is done manually.
Its historic significance
- Historical records show that Beypore has been a legendary maritime hub for traders from across the world since the 1st Century C.E.
- The iconic Uru ships have been in high demand for around 2000 years.
- The history of Khalasis, skilled natives engaged in launching the Uru boats at Beypore, dates back to 2000 years.
- The prominent people among them are Odayis. They manage the technical matters of ship building.
- Their family name comes from Odam (a type of small ship previously used in interactions/trade between the Malabar coast and Lakshadweep).
- They are also referred to as Mappila Khalasis as majority of them are Mappila Muslims.
Try this PYQ:
Q.With reference to ‘Changpa’ community of India, consider the following statement:
- They live mainly in the State of Uttarakhand.
- They rear the Pashmina goats that yield fine wool.
- They are kept in the category of Scheduled Tribes.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Post your answers here.
Back2Basics: Geographical Indication (GI)
- A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
- Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
- India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
- GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
- The tag stands valid for 10 years.
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