Note4Students
From UPSC perspective, the following things are important :
Prelims level: Consultative Group on International Agricultural Research (CGIAR)
Mains level: Paper 3- Food crisis due to price shocks
Context
This increase in global food prices which manifested itself in the three food price crises since the 1960s offers some pertinent lessons for global food systems and the international community.
Managing year-to-year volatility Vs. periodic spikes in food prices
- Year-to-year volatility is easily managed by most countries through changes in their trade and domestic policies.
- But steep and severe periodic price shocks can lead to some sort of a crisis at the global and national levels.
- Implications: The crisis can emerge in the form of food shortages, trade disruptions, a rise and spread in hunger and poverty levels, depletion of foreign exchange reserves, a strain on a nation’s fiscal resources, a threat to peace, and even social unrest in some places.
History of food crises after since adoption of Green Revolution
- Data from Food and Agriculture Organization of the United Nations, the World Bank/International Monetary Fund show that since the onset and the adoption of Green Revolution technology in the early 1960s, the world has been struck thrice by food price crises.
- First shock-1973-76: The first shock was experienced during 1973-76 when the food price index (based on prices in U.S. dollars) doubled in nominal terms.
- Declining trend: For the next two decades, food prices in real terms followed a declining trend and were at their lowest around 2002.
- After this, nominal as well as the real prices of food began rising.
- Second crisis-2008: This momentum built up to culminate in the next food price crisis of 2008, which was further intensified by 2011.
- While the price shock began softening after 2014, food prices did not move back to their pre-2006 level.
- Third crisis-2020: This time the increase in the food price index happened very quickly and it turned out to be very big – it has taken the food price index to its historically highest level.
- Cause outside agriculture: All the three food price crises were triggered by factors outside agriculture.
- They were not caused by any serious shortfall in agriculture production.
- The interval between crises is reducing: The interval between two consecutive price shocks has narrowed down considerably and the severity of shock is turning stronger.
What are the causes responsible for the recent food price crisis?
- 1] Covid-19 and Ukraine crisis: It was triggered by supply disruptions due to COVID-19 and further aggravated by the Russia-Ukraine war.
- The current food price spike first began in vegetable oils and then expanded to cereals.
- Higher the global trade higher disruption: The effect of global trade disruption will be higher for commodities that are traded more and vice-versa.
- 2] Diversion of food for biofuel: Another factor underlying the rising trend and spikes in food prices is the diversion of food for biofuel needs.
- When crude prices increase beyond a certain level it becomes economical to use oilseeds and grains for biodiesel and ethanol, respectively.
- The second reason for the use of food crops for biofuel is the mandates to increase the share of renewable energy resources.
- 3] Increased cost of agrochemicals and fertilisers: Food prices are also expected to go up in the current and next harvest season because of an increase in the prices of fertilizer and other agrochemicals.
Way forward for India
- Transmission of international prices to domestic prices can be prevented only if there is no trade.
- 1] Trade policy changes: This transmission of global prices to the domestic market can be moderated through trade policy and other instruments.
- When international prices go too low, India has checks on cheap imports to protect the interests of producers; and when international prices go too high, the country liberalises imports and imposes checks on exports to ensure adequate availability and reasonable food prices for domestic consumers.
- 2] Buffer stock: The policy of having a buffer stock of food staples has also been very helpful in maintaining price stability, especially in the wake of global food crises.
- 3] Strategic liberalisation: India should continue with a policy of strategic liberalisation, as followed in the past, to balance the interests of producers and consumers.
- 4] Maintain image as a reliable and credible exporter: The importance of agriculture exports to mop up food and agriculture surplus from the country is increasing.
- Ongoing trends in domestic demand and supply imply that India will be required to dispose of 15% of its domestic food output in the overseas market by 2030.
- This underscores the need to maintain India’s image as a reliable and credible exporter.
- However, it is important to differentiate between the two situations: disturbing normal export and regulating exports exceeding the normal level.
What are the implications for India?
- Increased prices in India: Export and import in the agriculture sector constituted 13% of gross value added in agriculture during 2020-21.
- Therefore, some transmission of an increase in global prices on domestic prices is inevitable.
- Wheat export ban and implications: The recent ban on wheat exports and restrictions on the export of other food commodities by India need to be seen in the light of an abnormal situation created by spikes in international prices.
- Some experts see it as a setback to India’s image as a reliable exporter as this move is seen to disrupt (regular) export channels.
- A closer examination of data reveals that India’s action to ban or restrict food exports is not disrupting its normal exports.
- India was a very small exporter of wheat, with its share in global wheat trade ranging between 0.1% to 1% during 2015-16 to 2020-21.
- The international market is looking for around 50 million tonnes of wheat to compensate for the disruption in wheat exports from Russia and Ukraine.
- If India had not imposed a ban on wheat export, it would have resulted in a severe shortage of wheat within the country.
Global impact and suggestions
- As the steam of Green Revolution technology slowed down with the start of the 21st century, food prices began increasing in real terms.
- New breakthroughs required: The world requires new breakthroughs such as Green Revolution technology, for large-scale adoption in order to enable checks on food prices rising at a faster rate.
- Increase spending on agri-research: This in turn requires increased spending on agriculture research and development (especially by the public sector and multilateral development agencies).
- Strengthen global agri-research system: There is a need to strengthen and rejuvenate the global agri-research system under the Consultative Group on International Agricultural Research (CGIAR) which is heading towards disarray.
- Rethink biofuel protocols: Biofuel protocols have contributed to the global food crisis for the second time in the last 15 years.
- Diversion of land under food crops and food output for biofuel should be carefully calibrated with implications for food availability.
Conclusion
- The last three food price crises were primarily caused due to an increase in energy prices and disruptions in the movement of food across borders.
- Factors related to climate change are going to be an additional source of supply shocks in the years ahead.
- Therefore, the global community must plan to have a global buffer stock of food in order to ensure reasonable stability in food prices and supply.
Back2Basics: Consultative Group on International Agricultural Research (CGIAR)
- CGIAR (formerly the Consultative Group for International Agricultural Research) is a global partnership that unites international organizations engaged in research about food security.
- CGIAR research aims to reduce rural poverty, increase food security, improve human health and nutrition, and sustainable management of natural resources.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Duopoly threat in India's telecom sector
Context
The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.
About 5G
- 5G is the 5th generation mobile network.
- It is a new global wireless standard after 1G, 2G, 3G, and 4G networks.
- 5G can be significantly faster than 4G, delivering up to 20 Gigabits-per-second (Gbps) peak data rates and 100+ Megabits-per-second (Mbps) average data rates.
- 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.
- 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users.
- Higher performance and improved efficiency empower new user experiences and connects new industries.
- With high speeds, superior reliability and negligible latency, 5G will expand the mobile ecosystem into new realms.
- 5G will impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics — and more — a reality.
India’s telecom sector: From monopoly to hyper-competition to duopoly
- India’s telecom market has seen monopoly as well as hyper-competition.
- Twenty-five years ago, the government alone could provide services.
- Technology and deregulation: In the following years, the combined forces of technology and deregulation helped break the shackles of public sector dominance despite the latter’s stiff resistance
- In the following years, there were nearly a dozen competing operators. Most service areas now have four players.
- However, the possible exit of the financially-stressed Vodafone Idea would leave only two dominant players-Airtel and Jio in the telecom sector.
- A looming duopoly, or the exit of a global telecommunications major, are both worrying.
- They deserve a careful and creative response.
Government package for telecom sector to prevent duopoly
- The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.
- As a part of its support package for the telecom sector, in October 2021, it dispensed with the requirement of performance bank guarantees required earlier as security.
- It increased the tenure of spectrum holding from 20 to 30 years.
- It allowed for the surrender of the unutilised or underutilised spectrum after 10 years.
- Most importantly removed the levy of spectrum usage charges.
Why competitive telecom market is important?
- Key to achieving digital ambitions: A competitive telecom sector is fundamental to realising India’s digital ambitions.
- Innovation: Monopolies have no incentive to innovate.
- Investment: The competition will guarantee that operators find it attractive to invest in network infrastructure upgradation and offer consumers a wide range of innovative service options.
- Source of revenue: A competitive telecom sector would be an indirect source of tax revenue as well.
- How to make market competitive? Competition cannot be willed into the sector.
- It needs careful nurturing, assiduous fostering and regulatory neutrality.
Way forward on 5G
- Structural changes: While the package may have prevented the exit of Vi from the market, to embed competition within the sector, structural changes are necessary.
- The imminent 5G networks demand massive investment and sophistication of operations.
- 1] Level playing field: This will not be achieved unless the playing field is level across the relevant operators and honest incentives are provided to operators to embrace new technology.
- 2] Change the spectrum allocation method: There is no doubt that spectrum auctions have served India well in the past due to the acrimonious political economy associated with administrative spectrum assignment, including First Come First Serve (FCFS) method.
- The auction regime worked well when demand exceeded supply, but if there is an adequate quantity of spectrum for everyone, that constraint would not exist.
- Administrative assignments can thus be considered once again.
- 3] Administrative assignments: An administrative assignment will include the possibility that all spectrum can be assigned at reasonable prices and in the process, a grand bargain can be struck with telecom operators.
- 4] Assigning 5G spectrum for private enterprise business: TRAI and the Digital Communications Commission (DCC) are considering whether 5G spectrum should be assigned to companies like TCS, Amazon and Google, among others, for their private enterprise business.
- 5G spectrum assignment for enterprises would adversely affect the business model of telcos.
- But there will be enterprises that telcos could serve that are not large enough to purchase 5G spectrum.
- A grand bargain that allows enterprises to buy 5G spectrum while assigning spectrum to the existing telcos through the administrative route will also serve the revenue needs of the government.
- 5] Privatise public sector operator: This is an opportunity to also signal to the public sector operator that 5G business is outside the range of its capability set.
- Hence like Air India it needs to be privatised in the fullness of time.
- These are difficult decisions and will need much more political will than in 1994.
Consider the question “Why a competitive telecom market is a prerequisite for achieving India’s digital dream and why an eminent duopoly in the sector stands to threaten that dream? Suggest way forward.”
Conclusion
It would be tragic if India’s telecom-access market was to be reduced to only two competing operators, as we have a long way to go. What we need is structural changes in the sectors as well as the way the sector is regulated.
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Back2Basics: Spectrum usage charges
- Companies had to pay 3-5 per cent of their adjusted gross revenue (AGR) as spectrum usage charge to the department of telecom.
- If they share spectrum with another operator, operators must pay an additional 0.5 per cent of AGR for that band as SUC.
- However, in September 2021, the Department of Telecommunications (DoT) decided to remove the floor rate of 3% of the adjusted gross revenue (AGR) for operators to pay their spectrum usage charge (SUC).
- The removal of the clause fixing a floor rate of 3% was done to give effect to the recently announced telecom relief package.
- Though the telecom package talks of scrapping SUC only on spectrum acquired in future auctions like that of 5G, if the 3% floor is abolished, as and when operators acquire more spectrum in future auctions, their SUC will become zero on the entire holding.
- This is because of a complex weighted average formula to calculate the SUC of operators who have a mix of administratively allocated spectrum and acquired through auctions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Inflation triggering factors
Context
Inflation is turning into a global concern fueled by multiple global factors. However, in India there are a few other triggers that will have a bearing on the inflationary trajectory.
Global inflation concerns
- All that could have possibly triggered higher inflation globally has already occurred — multiple waves of the pandemic, supply disruptions, an overdose of policy stimuli, war, sanctions, energy shocks, geopolitical adversity and weather disruptions.
1] Impact of MSP on inflation
- The MSP that is fixed by the government for kharif and rabi crops has been one of the key policy instruments.
- Policymakers in India have often acted with alacrity to protect the interests of farmers over the years.
- In the last 20 years, the weighted average MSP for kharif crops saw double-digit growth four times — in 2007, 2008, 2012 and 2018.
- Food inflation shot up to 12 per cent in 2007-08 as against 8 per cent in 2006-07 and 4 per cent in 2005-06.
- The inflationary surge continued in 2009 as a monsoon failure hit agricultural output hard.
- Global agricultural commodity prices started to rise in 2010 again and the FAO food price index reached an all-time high in July 2012.
- One of the key reasons for the increase in food prices was the oil price surge and a rise in demand for biofuel production.
- The global upside in food prices coincided with a 22 per cent increase in MSP for Kharif crops in India.
- Following the rise in MSP, food inflation in 2012 increased by 14.6 per cent as against 3.6 per cent the preceding year.
- In 2018, for the first time, the MSPs for all 23 kharif and rabi crops were fixed at a margin of at least 50 per cent higher than the cost of cultivation.
- The cost of cultivation (A2 + FL) includes the paid-out cost and cost of imputed family labour.
- Accordingly, the MSP of kharif crops in 2018 saw an annual increase of about 14 per cent.
- However, despite the significant rise in MSP, food inflation in 2018-19 was muted at 0.3 per cent.
- This was because farm input costs were under control and the terms of trade for farmers remained positive.
2] Impact of GST on inflation
- Raising the revenue-neutral rate: In the upcoming meeting, there is talk of changes in GST slabs and rates with an eye on raising the revenue-neutral rate from around 11.5 per cent, which is far lower than the 15.5 per cent estimated at the time of the launch of GST.
- Avoid the shock: However, a GST rate shock to the system is best avoided given the global inflationary backdrop and the fragility of consumer balance sheets.
3] Influence of weather
- While the dependence of agricultural output on the quantum of rainfall has reduced, variance in the spatial and temporal distribution of rainfall is emerging as a key risk.
- A look at 2021 — a normal monsoon year with rainfall at 99 per cent of its long period average — is instructive.
- The late excess rains delayed the crop cycle and led to crop damage in several parts of the country.
- Likewise, the spatial distribution of rainfall remained uneven in 2021.
- Thus, even with normal rainfall in 2021, there were several disruptions to the crop cycle and farm cash flows.
Conclusion
The government has taken various steps lately to rein in inflation. However, the RBI will have little freedom in case the GST council decides to accord revenue protection to states via higher GST rates or if the monsoon is not in line with expectations. One hopes these events pan out right, like the MSP hike, when most other things have gone wrong.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CoWIN
Mains level: Paper 2- CoWIN platform
Context
Seeing its success, other nations have also expressed interest in availing CoWIN and using it as a bridge for erecting their digital health systems. Responding to this incoming interest, our prime minister has offered CoWIN as a digital public good, free of cost, for all nations globally to adopt.
About CoWIN
- In late 2020, even before the Covid-19 vaccines had arrived, the Government of India had commenced preparations for launching the world’s largest vaccination drive.
- This led to the beginning of the CoWIN journey in January 2021.
- Scalability, modularity, and interoperability: CoWIN, or the Covid-19 Vaccine Intelligence Network, was developed in a record time, with consideration given to scalability, modularity, and interoperability.
- The platform has been made available in English and 11 regional languages to allow citizens across multiple states to access the platform with ease.
- To circumvent the lack of digital access, the platform allows for up to six members to be registered under one mobile-number linked account.
- CoWIN has scaled every 100 million milestone faster than any other platform.
- It reached the coveted one billion registered user mark which only a handful of platforms have been able to achieve globally, and none in such a short time.
- A key feature of the platform has been its modularity and evolvability.
- The CoWIN team has been adept at keeping pace with the changing policy environment and scientific research and developments in the administration of vaccines.
- It was never that CoWIN became the bottleneck or delayed the implementation of our vaccination policies or drive.
- Time and again, CoWIN has proved itself as one of the most secure and robust platforms with minimal data input and zero risk of personal data hacks.
Major phases of CoWIN
- The journey of CoWIN was staggered across three major phases, with multiple additions subsequently.
- In phase 1, the registration process went online where healthcare workers and frontline workers were sent system-generated notifications about their vaccination schedule.
- In subsequent phases, beneficiaries were allowed both walk-in and online vaccination registration, along with the choice of location and time slot as per their convenience.
- An assisted mode was also made available through the 240,000+ Common Service Centres (CSCs) and a helpline number.
- After ensuring successful orchestration using scalability and agile features of the platform to vaccinate individuals over 45 years of age, the APIs of the platform were made available to private players at the beginning of Phase III of the vaccination drive.
- Once access to its services was opened through APIs, more than 100 applications integrated with CoWIN for providing search, booking and certification facilities to their users.
Way ahead
- The inevitable question is what will we do with CoWIN when no further Covid-19 vaccines are to be administered?
- Repurpose the platform: The decision is to repurpose the platform as a universal immunisation platform.
- The credentialing service of DIVOC, used in CoWIN, has proven to be a game-changer in the world of digital certificates.
- CoWIN service is being implemented in five other countries after India and receiving global acceptance for its veracity and sound architecture.
- There is a proposal for opening the credentialing service for more use cases in health.
Conclusion
The story of CoWIN has truly been one of national impact and importance. And while the story started during the pandemic, it won’t end with the pandemic: it will segue into a repurposed digital platform for more health use-cases.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: EPI
Mains level: Paper 3- Environmental Performance Index (EPI) and related issues
Context
The 2022 Environmental Performance Index (EPI) produced by Yale and Columbia Universities and released on World Environment Day (June 5) has triggered much consternation in India, as the country is ranked last (180th).
Issues with EPI 2022
- Ignoring the past effects: Indicators may focus on current rates of increase or decrease in environmental pressures (flows) — as the EPI does for carbon dioxide emissions and tree cover gains — but under-state the accumulated effect (stocks) that relates to actual harm, thereby ignoring past effects.
- Same standard in different socio-ecological context: When ranking countries, one is essentially applying the same standard across vastly different socio-ecological contexts – this involves difficult choices.
- For example, the EPI leaves out arsenic in water, which is a major threat in Bangladesh.
- Difficulty in measurement of frogress on climate change: Climate change is a global environmental problem, and because its effects depend on the accumulation of greenhouse gases over time, measuring progress in a given country is challenging.
- Climate change mitigation has to be measured against what it is reasonable and fair to expect from different countries, taking into account their past emissions as well as national contexts.
- There has been an inconclusive 30-year debate on this question; any choice of benchmark involves major ethical choices.
- EPI has given 38 per cent weight to the climate change in the index.
- They assume that the world must reach net zero emissions by 2050, and so the appropriate benchmark is whether all countries are reducing emissions and reaching zero by 2050.
- Against CBDR: This approach is contrary to widely accepted ethical principles, especially the global political agreement on common-but-differentiated-responsibility (CBDR).
- The Yale-Columbia approach ignores the fact that countries have different responsibilities for past accumulations and are at different levels of emissions and energy use.
- The inclusion of indicators on emissions intensity and emissions per capita partly addresses this issue, but these two account for 7 per cent of the weight, versus 89 per cent for indicators derived from current emission trends.
Implications EPI’s approach
- This approach is guaranteed to make richer countries look good, because they have accumulated emissions in the past, but these have started declining in the last decade.
- Meanwhile, poorer countries that have emitted comparatively little in the past, look bad.
- The EPI’s flawed and biased approach distracts from a much-needed honest conversation about the environment in India.
- India’s local environmental performance on air, water and forests is deeply problematic.
- Air quality in India is now the second largest risk factor for public health in India, behind only child and maternal nutrition.
- Rivers and lakes are increasingly polluted, rivers are drying, groundwater tables are rapidly declining, and gains in tree cover hide declining natural productivity and diversity of forests and grasslands.
Conclusion
While indices like these have a limited attention-grabbing purpose, they serve this purpose well only when they are focused, limited to easy-to-measure metrics, and consciously minimise value judgements. The EPI 2022 resoundingly fails this test.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: Terror financing and money laundering
Pakistan which continues to face an economic crunch from the Financial Action Task Force (FATF), is hoping for some respite in the form of its removal from the FATF’s ‘grey list’.
What is the FATF?
- The FATF is an international watchdog for financial crimes such as money laundering and terror financing.
- It was established at the G7 Summit of 1989 in Paris to address loopholes in the global financial system after member countries raised concerns about growing money laundering activities.
- In the aftermath of the 9/11 terror attack on the US, FATF also added terror financing as a main focus area.
- This was later broadened to include restricting the funding of weapons of mass destruction.
- The FATF currently has 39 members.
Working of FATF
- The decision-making body of the FATF, known as its plenary, meets thrice a year.
- Its meetings are attended by 206 countries of the global network.
- It includes members, and observer organisations, such as the World Bank, some offices of the UN, and regional development banks.
Functions of FATF
- The FATF sets standards or recommendations for countries to achieve in order to plug the holes in their financial systems and make them less vulnerable to illegal financial activities.
- It conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it.
- The reviews are carried out by FATF and FATF-Style Regional Bodies (FSRBs), which then release Mutual Evaluation Reports (MERs).
- For the countries that don’t perform well on certain standards, time-bound action plans are drawn up.
- Recommendations for countries range from assessing risks of crimes to setting up legislative, investigative and judicial mechanisms to pursue cases of money laundering and terror funding.
What are the Black List and the Grey List?
- The words ‘grey’ and ‘black’ list do not exist in the official FATF lexicon.
- They however designate countries that need to work on complying with FATF directives and those who are non-compliant.
- Black List: The blacklist, now called the “Call for action” was the common shorthand description for the FATF list of “Non-Cooperative Countries or Territories” (NCCTs).
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
Consequences of being:
(1) In the grey list:
- Economic sanctions from IMF, World Bank, ADB
- Problem in getting loans from IMF, World Bank, ADB and other countries
- Reduction in international trade
- International boycott
(2) In the black list:
- High-risk jurisdictions subject to call for action
- Countries have considerable deficiencies in their AML/CFT (anti-money laundering and counter terrorist financing) regimens
- Enhanced due diligence
- Members are told to apply counter-measures such as sanctions on the listed countries
Note: Currently, North Korea and Iran are on the black list.
Pakistan and FATF
- Pakistan, which continues to remain on the “grey list” of FATF, had earlier been given the deadline till the June to ensure compliance with the 27-point action plan against terror funding networks.
- It has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
- FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
Why is Pakistan on the grey list?
- Pakistan has found itself on the grey list frequently since 2008, for weaknesses in fighting terror financing and money laundering.
- It never addressed concerns on the front of terror financing investigations and prosecutions targeting senior leaders and commanders of UN-designated terrorist groups.
- However, now steps had been taken in this direction such as the sentencing of terror outfit chief Hafiz Saeed, prosecution of Masood Azhar and seizure of their properties.
- India meanwhile, a member of FATF, suspects the efficacy and permanence of Pakistani actions.
Steps taken by Pakistan
- Pakistan is currently banking on its potential exclusion from the grey list to help improve the status of tough negotiations with the International Monetary Fund to get bailout money.
- Pakistan is now making a high-level political commitment to the FATF and APG to address its strategic AML/CFT deficiencies.
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From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Misleading Advertisements and Consumer Rights
The Centre has announced a new set of guidelines for advertisements preventing misleading ads by Celebrities.
Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022: Key takeaways
(1) Conditions for non-misleading and valid advertisement
An advertisement shall be considered to be valid and not misleading:
- If it contains truthful and honest representation;
- Does not mislead consumers by exaggerating the accuracy,
- Scientific validity or practical usefulness or capability or performance or service of the goods or product;
- Does not present rights conferred on consumers by any law as a distinctive feature of advertiser’s offer.
(2) Bait Advertisement
- A bait advertisement shall not seek to entice consumers to purchase goods, products or services without a reasonable prospect of selling such advertised goods, products or services at the price offered.
- The advertiser shall ensure that there is adequate supply of goods, products or services to meet foreseeable demand generated by such advertisement.
(3) Prohibition of surrogate advertising
- No surrogate advertisement or indirect advertisement shall be made for goods or services whose advertising is otherwise prohibited or restricted by law.
- No circumventing of such prohibition or restriction and portraying it to be an advertisement for other goods or services shall be allowed.
(4) Free claims advertisements
- A free claims advertisement shall not describe any goods, product or service to be ‘free’, ‘without charge’ or use such other terms if the consumer has to pay anything other than the unavoidable costs.
- Seller must make clear the extent of commitment that a consumer shall make to take advantage of a free offer.
(5) Children targeted advertisements
- An advertisement that addresses or targets or uses children shall not condone, encourage, inspire or unreasonably emulate behaviour that could be dangerous for children or take advantage of children’s inexperience, credulity or sense of loyalty.
(6) Limitations on Celebrity Endorsers
- The government has tightened norms for endorsers, including celebrities and sportspersons.
- They are now required to make material connection disclosures and undertake due diligence while doing advertisements.
- Endorsements must reflect the honest opinions, belief or experience of the endorsers.
- The endorsers have to make material connection disclosures and failing to do so will attract penalty under the Consumer Protection Act (CPA).
- Material disclosures mean any relationship that materially affects the weight or credibility of any endorsement which a reasonable consumer would not expect.
- Violation of these guidelines will attract a penalty of ₹10 lakh for the first offence and ₹50 lakh for the subsequent offence, under the CPA.
(7) ASCI rules
- The latest guidelines will also apply to government advertisements.
- Moreover, the advertising guidelines for self-regulation issued by the Advertising Standards Council of India (ASCI) will also be in place in a parallel manner.
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From UPSC perspective, the following things are important :
Prelims level: BrahMos Missile System
Mains level: Not Much
On June 12, 2001 the BrahMos supersonic cruise missile was first tested from a land-based launcher in Chandipur.
What is BrahMos Missile System?
- BrahMos is a joint venture between India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya.
- The missile derives its name from the Brahmaputra and Moskva rivers.
- Beginning with an anti-ship missile, several variants have since been developed.
- It is now capable of being launched from land, sea, sub-sea and air against surface and sea-based targets and has constantly been improved and upgraded.
Its capabilities
- BrahMos is a two-stage missile with a solid propellant booster engine.
- Its first stage brings the missile to supersonic speed and then gets separated.
- The liquid ramjet or the second stage then takes the missile closer to three times the speed of sound in cruise phase.
- The missile has a very low radar signature, making it stealthy, and can achieve a variety of trajectories.
- The ‘fire and forget’ type missile can achieve a cruising altitude of 15 km and a terminal altitude as low as 10 m to hit the target.
Background and development
- The early 1980s the Integrated Guided Missile Development Programme was conceived and led by Dr A P J Abdul Kalam.
- It started developing a range of missiles including Prithvi, Agni, Trishul, Akash and Nag, with a wide spectrum of capabilities and ranges.
- In the early 1990s, India’s strategic leadership felt the need for cruise and guided missiles.
- The need was felt primarily following the use of cruise missiles in the Gulf War.
- An Agreement was signed with Russia in Moscow in 1998 by Dr Kalam, who headed the DRDO.
- This led to the formation of BrahMos Aerospace, a joint venture between DRDO and NPO Mashinostroyenia (NPOM), the Indian side holding 50.5% and the Russians 49.5%.
Tests and induction
- In 1999, work on development of missiles began in labs of DRDO and NPOM after BrahMos Aerospace received funds from the two governments.
- The first successful test in 2001 was conducted from a specially designed land-based launcher.
- The missile system has since reached some key milestones, with the first major export order of $375 million received from the Philippines Navy this year.
Strategic significance
- Cruise missiles such as BrahMos, called “standoff range weapons”, are fired from a range far enough to allow the attacker to evade defensive counter-fire.
- What makes the missile system unparalleled is its extreme accuracy and versatility.
- With missiles made available for export, the platform is also seen as a key asset in defence diplomacy.
Variants of Brahmos
- Versions currently being tested include ranges up to 350 km, as compared to the original’s 290 km.
- Versions with even higher ranges, up to 800 km, and with hypersonic speed are said to be on cards.
- Efforts are also on to reduce the size and signature of existing versions and augment its capabilities further.
- Versions deployed in all three Armed forces are still being tested regularly, and so are versions currently under development.
- LAND-BASED: The land-based BrahMos complex has four to six mobile autonomous launchers, each with three missiles on board that can be fired almost simultaneously. They are described as ‘tidy’ as they have very few components.
- SHIP-BASED: The Navy began inducting BrahMos on its frontline warships from 2005. These can hit sea-based targets beyond the radar horizon. The Naval version has been successful in sea-to-sea and sea-to-land modes.
- AIR-LAUNCHED: On November 22, 2017, BrahMos was successfully flight-tested for the first time from a Sukhoi-30MKI against a sea-based target in the Bay of Bengal. It has since been successfully tested multiple times.
- SUBMARINE-LAUNCHED: This version can be launched from around 50 m below the water surface. The canister-stored missile is launched vertically from the pressure hull of the submarine and uses different settings for underwater and out-of-the-water flights.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National e-Vidhan Application (NeVA)
Mains level: Parliamentary efficiency
A delegation of MLAs from Gujarat visited the UP Legislative Assembly to learn about the novel e-Vidhan system for paperless proceedings that has been recently adopted by the UP state assembly.
E-Vidhan System
- The National e-Vidhan Application (NeVA) is a system for digitising the legislative bodies of all Indian states and the Parliament through a single platform.
- It includes a website and a mobile app.
- The house proceedings, starred/unstarred questions and answers, committee reports etc. will be available on the portal.
- Nagaland became the first state to implement NeVA, in March this year.
Significance of NeVA
- There has been a shift towards digitisation in recent years by the government.
- NeVA aims for streamlining information related to various state assemblies, and to eliminate the use of paper in day-to-day functioning.
- PM Modi mentioned the idea of “One Nation One Legislative Platform” in November 2021.
- A digital platform not only gives the necessary technological boost to our parliamentary system, but also connects all the democratic units of the country.
Has this been done elsewhere?
- Himachal Pradesh’s Legislative Assembly implemented the pilot project of NeVA in 2014, where touch-screen devices replaced paper at the tables of the MLAs.
- Though both Houses of Parliament have not gone fully digital yet, governments world over are heading towards embracing the digital mode.
- In December last year, the Government of Dubai became the world’s first government to go 100 percent paperless.
- It announced all procedures were completely digitised.
- This, as per a government statement, would cut expenditure by USD 350 million and also save 14-million-man-hours.
What are the challenges?
- Access to devices and reliable internet and electricity was an issue particularly for legislators representing rural constituencies.
- Lack of training and heightened concerns over security are some more recent issues in the road to digitization.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Microplastics pollution
Mains level: Not Much
Scientists have found microplastics — plastic pieces much smaller than a grain of rice — in freshly fallen Antarctic snow for the first time.
What are Microplastics?
- Microplastics are tiny bits of various types of plastic found in the environment.
- The name is used to differentiate them from “macroplastics” such as bottles and bags made of plastic.
- There is no universal agreement on the size of microplastics. It defines microplastic as less than 5mm in length.
- However, for the purposes of this study, since the authors were interested in measuring the quantities of plastic that can cross the membranes and diffuse into the body via the bloodstream.
- Hence they agreed on an upper limit on the size of the particles as 0.0007 millimetre.
Why in news?
- Researchers have found microplastics in the snow samples from the Ross Ice Shelf in Antarctica.
Threats posed by Microplastics
- Microplastics has the potential to influence the climate by accelerating melting of ice.
- They limit growth, reproduction, and general biological functions in organisms, as well as humans.
Try this PYQ:
- Why is there a great concern about the ‘microbeads’ that are released into environment?
(a) They are considered harmful to marine ecosystems.
(b) They are considered to cause skin cancer in children.
(c) They are small enough to be absorbed by crop plants in irrigated fields.
(d) They are often found to be used as food adulterants.
Post your answers here.
Back2Basics: Ross Ice Shelf
- Ross Ice Shelf is the largest ice shelf of Antarctica roughly the size of France.
- It is several hundred metres thick.
- The nearly vertical ice front to the open sea is more than 600 kilometres long, and between 15 and 50 metres (50 and 160 ft) high above the water surface.
- Ninety percent of the floating ice, however, is below the water surface.
- Most of Ross Ice Shelf is in the Ross Dependency claimed by New Zealand.
- It floats in, and covers, a large southern portion of the Ross Sea and the entire Roosevelt Island located in the east of the Ross Sea.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Surrogacy (Regulation) Act, 2021
Mains level: Read the attached story
A person has approached the Delhi High Court to question why marital status, age or gender should be the criteria for prohibiting someone from commissioning a surrogacy.
Why in news?
- Under the Surrogacy (Regulation) Act, 2021 a married couple can opt for surrogacy only on medical grounds.
- The petitioner have challenged in the court the surrogacy law and the Assisted Reproductive Technology (Regulation) Act, 2021 which provides a regulatory framework for surrogacy.
Issues raised by the petition
- Currently, the laws does not allow single men to have child through surrogacy.
- Married women can only avail surrogacy services if they are unable to produce a child due to medical conditions.
- Otherwise, for women to avail of surrogacy services, they must be aged between 35 and 45 and widowed or divorced.
- Women can only offer surrogacy if they are aged between 25 and 35 and married with at least one biological child.
- The laws also require a surrogate to be genetically related to the couple who intend to have a child through this method, their petition said.
Basis of the Petition
- The personal decision of a single person about the birth of a baby through surrogacy, i.e., the right of reproductive autonomy is a facet of the right to privacy guaranteed under Article 21 of the Constitution.
- Thus, the right to privacy of every citizen or person affecting a decision to bear or beget a child through surrogacy cannot be taken away.
Distinct features of the Surrogacy (Regulation) Act, 2021
- Definition of surrogacy: It defines surrogacy as a practice where a woman gives birth to a child for an intending couple with the intention to hand over the child after the birth to the intending couple.
- Regulation of surrogacy: It prohibits commercial surrogacy, but allows altruistic surrogacy which involves no monetary compensation to the surrogate mother other than the medical expenses and insurance.
- Purposes for which surrogacy is permitted: Surrogacy is permitted when it is: (i) for intending couples who suffer from proven infertility; (ii) altruistic; (iii) not for commercial purposes; (iv) not for producing children for sale, prostitution or other forms of exploitation; and (v) for any condition or disease specified through regulations.
- Eligibility criteria: The intending couple should have a ‘certificate of essentiality’ and a ‘certificate of eligibility’ issued by the appropriate authority ex. District Medical Board.
Eligibility criteria for surrogate mother:
- To obtain a certificate of eligibility from the appropriate authority, the surrogate mother has to be:
- A close relative of the intending couple;
- A married woman having a child of her own;
- 25 to 35 years old;
- A surrogate only once in her lifetime; and
- Possess a certificate of medical and psychological fitness for surrogacy.
- Further, the surrogate mother cannot provide her own gametes for surrogacy.
Also read:
[Burning Issue] Surrogacy in India
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: WANA region
Mains level: Paper 2- Engagement with Gulf countries
Context
A controversial remark by the ruling party spokesperson against the Prophet has snowballed into a diplomatic row. Against this backdrop, New Delhi should not stop engaging the Gulf countries and strive to move beyond damage control.
International reaction against the remarks
- The United Arab Emirates, Oman, Indonesia, Iraq, the Maldives, Jordan, Libya and Bahrain have joined the growing list of countries in the Islamic world that have condemned the remarks.
- Earlier, Kuwait, Iran and Qatar had called Indian ambassadors to register their protest, and Saudi Arabia had issued a strongly-worded statement.
- Campaigners (including a few GCC regimes) demand that Prime Minister of India should tender an apology for all that happened.
- But New Delhi’s stance is categorial and legitimate insofar as the Union government has nothing to do with such unsolicited comments.
Why WANA is important for India
- Engagement with WANA: Countries in West Asia and North Africa (WANA) region do not have a fixed position vis-à-vis India.
- Delhi has vibrant economic and strategic ties with almost all regimes in the region.
- That’s precisely the reason these countries are unwilling to join the Islamabad-led chorus or go beyond passing resolutions.
- India’s signing of a free trade agreement (FTA) with the UAE and the ongoing negotiations for a wider FTA with the GCC could be an eye-opener for the country’s detractors.
- India’s energy needs: As much as 40 per cent of oil and an equal share of gas requirements are met through India’s strategic cooperation with the Gulf regimes.
- Mutuality of interests: India and the WANA regimes know that there is a mutuality of interests in these transactions which cannot be substituted by any other segments of the world system.
- Indian diaspora: Equally important is the role of the more than eight million-strong Indian diaspora in the WANA region.
- The “Gulf remittance” is an important part of the Indian economy, as important as the Indian investment in the GCC and GCC investment in India.
Way forward
- India’s foreign policy strategy — which includes strategic bargaining with regional and international actors — would fetch reasonable dividends.
- The response to its Ukraine war strategy has convinced South Block that it has adequate manoeuvrability in global affairs.
Conclusion
New Delhi should not stop engaging the countries, especially the ones in the WANA region, as both have shared interests. Therefore, South Block must go beyond a mere damage-control exercise.
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From UPSC perspective, the following things are important :
Prelims level: Tendu Leaves, NTFP
Mains level: Not Much
Tribal residents in Chhattisgarh have decided to file an FIR against an official of the state forest department after he confiscated the tendu leaves that they had collected.
Tendu Leaves
- Leaves of tree species Diospyros melanoxyion are used as wrappers of tobacco to produce bidi.
- This tree is commonly known as “tendu,” but also called “abnus” in Andhra Pradesh, “kendu” in Orissa and West Bengal, “tembru” in Gujarat, “kari” in Kerala, “tembhurni” in Maharahstra, and “bali tupra” in Tamil Nadu.
- This leaf is considered the most suitable wrapper on account of the ease with which it can be rolled and its wide availability.
- Tendu is also called ‘green gold’ and is a prominent minor forest produce in India.
How it is traded?
- In 1964, the trade in tendu leaves was nationalised in then-undivided Madhya Pradesh.
- Until then, people were free to sell tendu leaves in markets across the country.
- Maharashtra adopted the same system in 1969, undivided Andhra Pradesh in 1971, Odisha in 1973, Gujarat in 1979, Rajasthan in 1974 and Chhattisgarh in 2000.
- Under this arrangement, the state forest department collects tendu leaves, allows their transportation and sells them to traders.
Why is there a dispute?
- The dispute is essentially about who has the right to sell the leaves.
- State governments say only they can do so due to nationalization.
- On the other hand, tendu leaf collectors cite The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 and the 2013 Supreme Court verdict in the Niyamgiri Case to say private collectors can sell them on their own.
- Tendu leaf collectors allege that the government gives them a lower price for the leaves, while it fetches a higher price in the open market.
What do the tribals want?
- The tribals, after having obtained forest rights leases under the FRA 2006, now want to sell tendu leaves on their own, with the permission of Gram Sabhas and make good profits.
- Many types of minor forest produce like Mahua, Salbeej or the seeds of the Sal tree (Shorea robusta) and Chironji or Almondette kernels (Buchanania lanzan) are collected and sold by tribals.
- Hence, there should not be a dispute over tendu leaves.
Back2Basics: Forest Produce in India
- Forest produce is defined under section 2(4) of the Indian Forest Act, 1927.
- Its legal definition includes timber, charcoal, catechu, wood-oil, resin, natural varnish, bark, lac, mahua flowers, trees and leaves, flowers and fruit, plants (including grass, creepers, reeds and moss), wild animals, skins, tusks, horns, bones, cocoons, silk, honey, wax, etc.
- Forest produce can be divided into several categories.
- From the point of view of usage, forest produce can be categorized into three types: Timber, Non-Timber and Minor Minerals.
- Non-timber forest products (NTFPs) are known also as minor forest produce (MFP) or non-wood forest produces (NWFP).
- The NTFP can be further categorized into medicinal and aromatic plants (MAP), oilseeds, fibre & floss, resins, edible plants, bamboo, reeds and grasses
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From UPSC perspective, the following things are important :
Prelims level: TVS-2M Nuclear Fuel
Mains level: Not Much
Russia has supplied the first batches of more reliable and cost-efficient nuclear fuel over the existing one, the TVS-2M nuclear fuel, to India for the Kudankulam Nuclear Power Plant (KNPP).
What is TVS-2M Nuclear Fuel?
- The TVS-2M FAs contain gadolinium-oxide which is mixed with U-235 enrichments.
- The core does not contain BARs (Burnable Absorbers Rods).
How are they prepared?
- Once the uranium is enriched, it is ready to be converted into nuclear fuel.
- At a nuclear fuel fabrication facility, the UF6, in solid form, is heated to gaseous form, and then the UF6 gas is chemically processed to form uranium dioxide (UO2) powder.
- The powder is then compressed and formed into small ceramic fuel pellets.
- The pellets are stacked and sealed into long metal tubes that are about 1 centimetre in diameter to form fuel rods.
- The fuel rods are then bundled together to make up a fuel assembly.
- Depending on the reactor type, each fuel assembly has about 179 to 264 fuel rods.
- A typical reactor core holds 121 to 193 fuel assemblies.
Benefits offered
- TVS-2M fuel assemblies have a number of advantages making them more reliable and cost-efficient.
- The new fuel has increased uranium capacity – one TVS-2M assembly contains 7.6% more fuel material as compared to UTVS.
- Besides, the special feature of the Kudankulam fuel in particular is the new generation anti-debris filter ADF-2, efficiently protecting fuel assemblies.
- Once the new TVS-2 M fuel is used in the next refuelling, the reactor will start operations with an 18-month fuel cycle.
- It means the reactor, which has to be stopped for every 12 months for removing the spent fuel and inserting the fresh fuel bundles and allied maintenance, will have to be stopped for every 18 months.
Back2Basics: India-Russia Energy Cooperation
- The Soviet Union supplied India with nuclear reactors and fuel when India was denied technologies and was hit with sanctions from the West for its refusal to sign the nuclear non-proliferation treaty (NPT).
- In 1988, the Soviet Union agreed, allegedly without an official deal, to build two nuclear reactors at Kudankulam in Tamil Nadu. The deal was made official in 1992.
- In 2000, Russia and India signed another secret MoU, to cooperate on “peaceful uses” of nuclear energy, and for Russia to supply India with low-enriched uranium fuel for the Tarapur reactor in Maharashtra.
- In 2009, the two countries entered into a major nuclear deal, with Russia agreeing to install four nuclear reactors at Kudankulam in Tamil Nadu, and one in West Bengal.
- Two units at Kudankulam are currently operational, and the third and fourth units are being prepared for installation.
- Russia is also aiding with the ongoing construction of the fifth and sixth units.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IN-SPACE
Mains level: Commercial space activities in India
The Prime Minister inaugurated the headquarters of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) at Bopal, Ahmedabad.
What is IN-SPACe?
- The establishment of IN-SPACe was announced in June 2020.
- It is an autonomous and single window nodal agency in the Department of Space for the promotion, encouragement and regulation of space activities of both government and private entities.
- It also facilitates the usage of ISRO facilities by private entities.
- It comprises technical experts for space activities along with safety expert, academic experts and legal and strategic experts from other departments.
- It also comprises members from PMO and MEA of Government of India.
Roles and Responsibilities
- Space activities including building of launch vehicles and satellites and providing space based services as per the definition of space activities.
- Sharing of space infrastructure and premises under the control of ISRO with due considerations to on-going activities.
- Establishment of temporary facilities within premises under ISRO control based on safety norms and feasibility assessment
How is it different from ANTRIX?
- Antrix Corporation Limited (ACL), Bengaluru is a wholly-owned Government of India Company under the administrative control of the Department of Space.
- It is as a marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO.
- Antrix is engaged in providing Space products and services to international customers worldwide.
What about New Space India Limited (NSIL)?
- It functions under the administrative control of the Department of Space (DOS).
- It aims to commercially exploit the research and development work of ISRO Centres and constituent units of DOS.
- The NSIL would enable Indian Industries to scale up high-technology manufacturing and production base for meeting the growing needs of the Indian space program.
- It would further spur the growth of Indian Industries in the space sector.
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From UPSC perspective, the following things are important :
Prelims level: NATGRID
Mains level: Not Much
The Ministry of Home Affairs (MHA) has curtailed the tenure of the Chief Executive Officer (CEO) of the National Intelligence Grid (NATGRID) and moved him to the Border Security Force (BSF).
What is NATGRID?
- NATGRID is an intelligence-sharing network that collates data from the standalone databases of the various agencies and ministries of the Indian government.
- It is a counter terrorism measure that collects and collates a host of information from government databases including tax and bank account details, credit/debit card transactions, visa and immigration records and itineraries of rail and air travel.
- It will also have access to the Crime and Criminal Tracking Network and Systems (CCTNS), a database that links crime information, including First Information Reports, across 14,000 police stations in India.
- As of 2019, NATGRID is headed by an Indian Police Service (IPS) officer Ashish Gupta.
Its establishment
- The 26/11 terrorist siege in Mumbai back in 2008 exposed the deficiency that security agencies had no mechanism to look for vital information on a real-time basis.
Access to NATGRID
- Prominent federal agencies of the country have been authorized to access the NATGRID database.
- They are the:
- Central Bureau of Investigation
- Directorate of Revenue Intelligence,
- Enforcement Directorate
- Central Board of Indirect Taxes and Customs
- Central Board of Direct Taxes (for the Income Tax Department)
- Cabinet Secretariat
- Intelligence Bureau
- Directorate General of GST Intelligence
- Narcotics Control Bureau
- Financial Intelligence Unit, and
- National Investigation Agency
Future prospects
- According to the first phase plan, 10 user agencies and 21 service providers will be connected with the NATGRID, while in later phases, about 950 additional organizations will be brought on board.
- In the following years, more than 1,000 organizations will be further integrated into the NATGRID.
- These data sources include records related to immigration entry and exit, banking and financial transactions, and telecommunications.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GDP and inflation
Mains level: Paper 3- India's growth rate
Context
The Provisional Estimates of Annual National Income in 2021-22 just released show that GDP grew 8.7% in real terms and 19.5% in nominal terms (including inflation). It makes India the fastest growing major economy in the world.
What data implies
- Just 1.51% larger: Provisional Estimates of Annual National Income in 2021-22 also indicate that, the real economy is 1.51% larger than it was in 2019-20, just before the novel coronavirus pandemic hit the world.
- In nominal terms it is higher by 17.9%.
- Inflation: These numbers imply that the rate of inflation was 10.8% in 2021-22 and 16.4% between the two years, 2019-20 and 2021-22.
- Almost no growth: This picture implies almost no growth and high inflation since the pre-pandemic year.
- So, the tag of the fastest growing economy means little.
- Quarterly growth rate: The quarter to quarter growth currently may give some indication of the present rate of growth.
- In 2020-21, the quarterly rate of growth increased through the year.
- In 2021-22, the rate of growth has been slowing down.
- Of course in 2020-21, the COVID-19 lockdown had a severe impact in Q1 (-23.8%); after that the rate of growth picked up.
- In 2021-22, the rate of growth in Q1 had to sharply rise (20.3%).
- Ignoring the outliers in Q1, growth rates in 2021-22 have sequentially petered out in subsequent quarters: 8.4%, 5.4% and 4.1%.
- Going forward, while the lockdown in China is over, the war-related impact is likely to persist since there is no end in sight.
- Thus, price rise and impact on production are likely to persist.
Issues with the data
- The issue is about correctness of data.
- The annual estimates given now are provisional since complete data are not available for 2021-22.
- There is a greater problem with quarterly estimates since very limited data are available for estimating it.
- No data for Q1 of 2020-21: The first issue is that during 2020-21, due to the pandemic, full data could not be collected for Q1.
- No data for agriculture: Further, for agriculture, quarterly data assumes that the targets are achieved.
- Agriculture is a part of the unorganised sector.
- Very little data are available for it but for agriculture — neither for the quarter nor for the year.
- It is simply assumed that the limited data available for the organised sector can be used to act as a proxy.
- The non-agriculture unorganised sector is represented by the organised sector.
- Changes in non-agriculture unorganised: The method using the organised sector to proxy the unorganised non-agriculture sector may have been acceptable before demonetisation (2016) but is not correct since then.
- The reason is that the unorganised non-agriculture sector suffered far more than the organised sector and more so during the waves of the pandemic.
- Shift in demand to the organised sector: Large parts of the unorganised non-agriculture sector have experienced a shift in demand to the organised sector since they produce similar things.
- This introduces large errors in GDP estimates since official agencies do not estimate this shift.
- All that is known is that the Micro, Small and Medium Enterprises (MSME) sector has faced closures and failures.
- If GDP data are incorrect, data on its components — private consumption and investment — must also be incorrect.
- Further, the ratios themselves would have been impacted by the shock of the lockdown and the decline of the unorganised sectors.
- Private consumption data is suspect since according to the data given by the Reserve Bank of India which largely captures the organised sector, consumer confidence throughout 2021-22 was way below its pre-pandemic level of 104 achieved in January 2020.
- In brief, neither the total nor the ratios are correct.
Possible corrections
- In the best possible scenario, assume that the organised sector (55% of GDP) and agriculture (14% of GDP) are growing at the official rate of growth of 8.2% and 3%, respectively.
- Then, they would contribute 4.93% to GDP growth.
- The non-agriculture unorganised component is declining for two reasons: first, the closure of units and the second the shift in demand to the organised sector.
- Even if 5% of the units have closed down this year and 5% of the demand has shifted to the organised sector, the unorganised sector would have declined by about 10%; the contribution of this component to GDP growth would be -3.1%.
Conclusion
Clearly, recovery is incomplete and India is not the fastest growing big economy of the world.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IPEF countries
Mains level: Paper 2- IPEF opportunities and challenges
Context
The official launch of the Biden Administration’s Indo-Pacific Economic Framework (IPEF), the US’s de facto foreign economic policy for Asia, has been lauded and welcomed.
About IPEF
- Seen as a means to counter China in the region, it is a U.S.-led framework for participating countries to solidify their relationships and engage in crucial economic and trade matters in the region.
- The member nations include Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
- It includes seven out of 10 members of the Association of South East Asian Nations (ASEAN), all four Quad countries, and New Zealand.
- Together, these countries account for 40 per cent of the global GDP.
- Not a free trade agreement: The Indo-Pacific Economic Framework is not a free trade agreement.
- No market access or tariff reductions have been outlined, although experts say it can pave the way for future trade deals.
- The IPEF is also seen as a means by which the US is trying to regain credibility in the region after former President Donald Trump pulled out of the Trans Pacific Partnership TPP.
- IPEF countries value its purpose and potential, particularly given some doubts over whether the US administration could sustain its focus in Asia as war broke out in Europe.
- The IPEF empowers the Biden administration to shape rules across several critical pillars that will condition America’s economic engagement in the Indo-Pacific amid competing economic paradigms, notably the Chinese through the BRI and Europe through digital policies and standards.
- Countering China: Besides Ukraine, the IPEF’s importance also owes to China’s patent economic footprint across Asia that could be checked by an alternative economic paradigm that emphasises openness, flexibility, and integration.
Significance of IPEF
- Boost supply chain resilience: Globally, the IPEF signifies the first multilateral attempt to boost supply chain resilience to ease global inflationary pressures and mitigate effects of future disruptions, particularly key raw materials, critical minerals, and semiconductors.
- Four key pillars: It’s a framework or a starting point to regulate trade and commerce across four key pillars: Digital economy, supply chains, clean energy, and governance.
- Negotiating high standard rules: The IPEF also represents an effort to negotiate “high-standard” rules between like-minded countries to govern the digital economy, particularly data flows, climate mitigation, global tax, anti-money laundering and anti-bribery provisions.
Challenges
- Impact on domestic companies: IPEF commitments and standards that other signatories like India have to accede to, will likely facilitate US MNCs’ access to Asian economies at the expense of domestic preferences.
- Impact on policy preference of countries: The IPEF’s pillars — climate, digital, supply chains, and governance reforms — could clash with and supersede these countries’ policy preferences on such issues.
- For instance, the US’ preference to allow free and open data flows under the digital economy pillar will constrict India’s ability to regulate data for domestic purposes.
Way forward for India
- The IPEF remains attractive for India given its flexibility and open nature, allowing Delhi to demonstrate its political commitment to the United States to jointly shape the rules governing the Indo-Pacific’s economic future even as competitors lurk.
- Tough policy choices, like the one on data and taxation, must be made by Indian officials while negotiating the terms of the IPEF accession.
Conclusion
What’s clear is that the IPEF represents both a mirage and aspiration. Collectively, it represents a leap into an unknown that has to be negotiated amongst partners that share interests and some values.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Lessons from Indus Water Treaty
Context
The 118th meeting of the Permanent Indus Commission (PIC) comprising the Indus Commissioners of India and Pakistan held on May 30-31, 2022 in New Delhi.
Indus Waters Treaty, 1960: A background
- After years of arduous negotiations, the Indus Waters Treaty was signed in Karachi on September 19, 1960, by then Indian Prime Minister Jawaharlal Nehru and then Pakistani President Ayub Khan, negotiated by the World Bank.
- According to this agreement, control over the water flowing in three “eastern” rivers of India — the Beas, the Ravi and the Sutlej was given to India
- The control over the water flowing in three “western” rivers of India — the Indus, the Chenab and the Jhelum was given to Pakistan
- The treaty allowed India to use western rivers water for limited irrigation use and unrestricted use for power generation, domestic, industrial and non-consumptive uses such as navigation, floating of property, fish culture, etc. while laying down precise regulations for India to build projects
- India has also been given the right to generate hydroelectricity through the run of the river (RoR) projects on the Western Rivers which, subject to specific criteria for design and operation is unrestricted.
- The Permanent Indus Commission, which has a commissioner from each country, oversees the cooperative mechanism and ensures that the two countries meet annually (alternately in India and Pakistan).
- This year, the commission met twice, in March in Islamabad, Pakistan, and then in New Delhi, in May.
- It is a rare feat that despite the many lows in India-Pakistan relations, talks under the treaty have been held on a regular basis.
Some disagreements
- Throughout its existence, there have been many occasions during which differences between the two countries were discernible.
- Both countries held different positions when Pakistan raised objections regarding the technical design features of the Kishanganga and Ratle hydroelectric power plants.
- Differences were also discernible when Pakistan approached the World Bank to facilitate the setting up of a court of arbitration to address the concerns related to these two projects referred to in Article IX Clause 5 of the treaty, and when India requested the appointment of a Neutral Expert referent to Clause 2.1 of Article IX .
- Eventually, on March 31, 2022, the World Bank, decided to resume two separate processes by appointing a neutral expert and a chairman for the court of arbitration.
- The appointment of a neutral expert will find precedence to address the differences since under Article IX Clause 6 of the treaty provisions, Arbitration ‘shall not apply to any difference while it is being dealt with by a Neutral Expert’.
- Pakistan, invoking Article VII Clause 2 on future cooperation, raised objections on the construction and technical designs of the Pakal Dul and Lower Kalnai hydropower plants.
- Similarly, India has raised concerns on issues such as Pakistan’s blockade of the Fazilka drain.
Lessons from the treaty
- Engagement between conflicting nations: The treaty is an illustration of a long-standing engagement between the conflicting nations that has stood the vagaries of time.
- Water management cooperation: The treaty is considered one of the oldest and the most effective examples of water management cooperation in the region and the world.
- Avoiding conflict: With the exception of differences on a few pending issues, both countries have avoided any actions resulting in the aggravation of the conflict or acted in a manner causing conflict to resurface.
Potential for cooperation
- Joint research: Recognising common interests and mutual benefits, India and Pakistan can undertake joint research on the rivers to study the impact of climate change for ‘future cooperation’ (underlined in Article VII).
- Potential for cooperation and development: The Indus Waters Treaty also offers great potential for cooperation and development in the subcontinent which can go a long way in ensuring peace and stability.
Conclusion
Given that both India and Pakistan have been committed to manage the rivers in a responsible manner, the Treaty can be a reference point to resolve other water-related issues in the region through regular dialogue and interaction.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Marijuana
Mains level: Substance abuse in India
Thailand has officially legalized the growing and consumption of marijuana in food and drinks, becoming the first Asian country to do so.
Films like ‘Udta Punjab’ have graphically portrayed the crisis faced by the society and its youth with regard to the drug menace.
What is Marijuana?
- Cannabis, also known as marijuana among other names, is a psychoactive drug from the Cannabis plant used primarily for medical or recreational purposes.
- The main psychoactive component of cannabis is tetrahydrocannabinol (THC), which is one of the 483 known compounds in the plant, including at least 65 other cannabinoids, including cannabidiol (CBD).
- It is used by smoking, vaporizing, within the food, or as an extract.
Prospects of legalizing Marijuana
(1) Health benefits
- The cannabinoids found in Cannabis is a great healer and has found mention in the Ayurveda.
- It can be used to treat a number of medical conditions like multiple sclerosis, arthritis, epilepsy, insomnia, HIV/AIDS treatment, cancer.
(2) Ecological benefits
- The cannabis plant and seeds apart from being labeled a ‘super-foods’ as per studies is also a super-industrial carbon negative raw material.
- Each part of the plant can be used for some industry. Hemp currently is also being used to make bio-fuel, bio-plastics and even construction material in certain countries. The cosmetic industry has also embraced Hemp seeds.
(3) Marijuana is addiction-free
- An epidemiological study showed that only 9% of those who use marijuana end up being clinically dependent on it.
- The ‘comparable rates’ for tobacco, alcohol and cocaine stood at 32%, 15% and 16% respectively.
(4) Good source of Revenue
- By legalizing and taxing marijuana, the government will stand to earn huge amounts of revenue that will otherwise go to the Italian and Israeli drug cartels.
- In an open letter to US President George Bush, around 500 economists, led by Nobel Prize winner Milton Friedman, called for marijuana to be “legal but taxed and regulated like other goods”.
(5) A potential cash crop
- The cannabis plant is something natural to India, especially the northern hilly regions. It has the potential of becoming a cash crop for poor marginal farmers.
- If proper research is done and the cultivation of marijuana encouraged at an official level, it can gradually become a source of income for poor people with small landholdings.
(6) Prohibition was ineffective
- In India, the consumption of synthetic drugs like cocaine has increased since marijuana was banned, while it has decreased in the US since it was legalized in certain states.
- Moreover, these days, it is pretty easy to buy marijuana in India and its consumption is widespread among the youth. So it is fair to say that prohibition has failed to curb the ‘problem’.
(7) Marijuana is less harmful
- Marijuana consumption was never regarded as a socially deviant behaviour any more than drinking alcohol was. In fact, keeping it legal was considered as an ‘enlightened view’.
- It is now medically proven that marijuana is less harmful than alcohol.
Risks of Legalizing Cannabis
(1) Health risks continue to persist
- There are many misconceptions about cannabis. First, it is not accurate that cannabis is harmless.
- Its immediate effects include impairments in memory and in mental processes, including ones that are critical for driving.
- Long-term use of cannabis may lead to the development of addiction of the substance, persistent cognitive deficits, and of mental health problems like schizophrenia, depression and anxiety.
- Exposure to cannabis in adolescence can alter brain development.
(2) A new ‘tobacco’ under casualization
- A second myth is that if cannabis is legalized and regulated, its harms can be minimized.
- With legalization comes commercialization. Cannabis is often incorrectly advertised as being “natural” and “healthier than alcohol and tobacco”.
- Tobacco, too, was initially touted as a natural and harmless plant that had been “safely” used in religious ceremonies for centuries.
(3) Unconvincing Advocacy
- Advocates for legalization rarely make a convincing case. To hear some supporters tell it, the drug cures all diseases while promoting creativity, open-mindedness, moral progression.
- Too much trivialization of Cannabis use could lead to its mass cultivation and a silent economy wreaking havoc through a new culture of substance abuse in India.
Way forward
- For Cannabis/ Marijuana, it’s important to make a distinction between legalization, decriminalization and commercialization.
- We must ensure that there are enough protections for children, the young, and those with severe mental illnesses, who are most vulnerable to its effects.
- Hence, laws should be made to suit people so that they do not break the law to maintain their lifestyle.
- Laws should weave around an existing lifestyle, not obstruct it. Or else laws will be broken.
Conclusion
- The debate on the legalization of marijuana in India has been consistent on social media and other noted platforms.
- As with alcohol and tobacco products, the use of cannabis needs to be regulated, taxed and monitored.
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