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Archives: News

  • Foreign Policy Watch: United Nations

    [pib] 57th Session of the Commission on Population and Development (CPD57)

    Why in the news?

    India’s Elected Women Representatives (EWRs) are participating in the Commission on Population and Development (CPD57) 57th session at the United Nations Headquarters in New York.

    About Commission on Population and Development (CPD)

    Details
    Establishment Established by United Nations Economic and Social Council (ECOSOC) resolution 18(IV) in 1946 to advise on population and development issues.
    Mandate Provides guidance and recommendations on population and development policies to ECOSOC and the UN General Assembly.
    Membership Comprises 47 member states elected by ECOSOC for 4-year terms, based on geographic representation and expertise.
    Meetings Holds annual sessions at the United Nations Headquarters in New York, typically in April.
    Themes Focuses each session on specific population and development themes, such as youth empowerment and gender equality.
    Reports and Resolutions Prepares reports and adopts resolutions containing recommendations for action by ECOSOC and the UN General Assembly.
    Linkage to SDGs Closely aligned with the Sustainable Development Goals (SDGs), particularly Goal 3, 5, 10, and 17.
    Regional Collaboration Collaborates with regional commissions and expert groups to analyze population trends and develop strategies at regional and national levels.

     

    PYQ:

    [2017] What are the main functions of the United Nations Economic and Social Council (ECOSOC)? Explain different functional commissions attached to it.

    [2017] With reference to the role of UN-Habitat in the United Nations programme working towards a better urban future, which of the statements is/are correct?

    1. UN-Habitat has been mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities to provide adequate shelter for all.

    2. Its partners are either governments or local urban authorities only.

    3. UN-Habitat contributes to the overall objective of the United Nations system to reduce poverty and to promote access to safe drinking water and basic sanitation.

    Select the correct answer using the code given below:

    (a) 1, 2 and 3

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1 only

  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Analyzing labor on a warming planet

    Why in the News?

    The International Labour Organization’s (ILO) latest report, Ensuring safety and health at work in a changing climate’, is an urgent call to ensure the future of labour is climate proofed and to address the constantly evolving work environment as the planet warms.

    What are the Emerging Hazards? (The ILO has identified six key impacts of climate change)

    • Solar Ultraviolet Radiation: Increased exposure to solar ultraviolet radiation due to climate change can have adverse effects on outdoor workers, potentially leading to skin damage and cancer.
    • Extreme Weather Events: Climate change is contributing to the frequency and intensity of extreme weather events such as hurricanes, floods, and wildfires, which pose significant risks to workers in various sectors.
    • Workplace Air Pollution: Climate change can exacerbate air pollution in workplaces, particularly in industrial settings, leading to respiratory illnesses and other health problems among workers.
    • Vector-Borne Diseases: Changing climate patterns can influence the distribution and prevalence of vector-borne diseases such as malaria, dengue fever, and Zika virus, posing risks to workers in affected regions.
    • Agrochemicals: Agricultural workers may face increased exposure to agrochemicals due to changes in pest and disease patterns resulting from climate change, potentially leading to health issues such as pesticide poisoning.
    • Gig Economy Workers: The rise of gig employment, particularly in heat-susceptible sectors such as transportation and delivery services, exposes workers to additional risks related to heat stress and other climate-related hazards.

    Most affected Sectors of the Economy:

    • Agriculture: Despite a decline in the proportion of the workforce engaged in agriculture over the past few decades, it remains the most heat-susceptible sector, particularly in the developing world like India.
      • The NSSO data of July 2018-June 2019 reveal that almost 90% of Indian farmers own less than two hectares of land, and earn an average monthly income of a little over ₹10,000
    • Micro, Small, and Medium Enterprises (MSMEs): India’s vast MSME sector, employing over 123 million workers, contributes significantly to the country’s economy. However, the sector’s informalization poses challenges in ensuring worker safety and health.
      • Lack of oversight by state Occupational Safety and Health (OSH) departments makes workers highly vulnerable to heat hazards, despite the sector’s substantial contribution to exports and manufacturing output.
    • Building and Construction: With approximately 70 million workers, the construction sector in India faces the urban heat island effect, especially in rapidly growing cities. Workers in this sector are exposed to physical injuries and health hazards such as asthma due to air pollution, as many Indian cities rank among the most polluted globally as per World Air Quality Report 2023 by IQAir.

    About Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code, 2020): 

    • This is a comprehensive law, enacted in September 2020.
    • It consolidates and amends more than 13 central laws related to workplace safety, including the Factories Act, 1948, the Workmen Compensation Act, 1923, the Building and Other Construction Workers Act, 1996, the Plantations Labour Act, 1951, the Mines Act, 1952, and the Inter-State Migrant Workmen Act, 1979.
    • However, the enforcement of this law is yet to be officially notified by the Union government.

     

    Way forward:

    • Enhanced Regulations and Enforcement: Implement and enforce the Occupational Safety, Health, and Working Conditions Code, 2020 to ensure comprehensive protection for workers across all sectors. This includes setting clear standards for workplace safety, regular inspections, and penalties for non-compliance.
    • Heat Stress Management: Implement measures to manage heat stress in workplaces, especially in heat-susceptible sectors like agriculture and construction. This can include providing access to shaded rest areas, increasing hydration facilities, adjusting work schedules to avoid peak heat hours.
    • Healthcare Access: Ensure access to healthcare services for workers, including regular health check-ups and treatment for heat-related illnesses and other occupational health issues. This may involve setting up medical facilities near worksites or providing transportation to nearby healthcare facilities.

    Mains PYQ 

    Q ‘Climate change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change? (UPSC IAS/2017)

  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    An Animal Protection Bill that must be moved in June

    Why in the News? 

    Presently, Croatia has imposed stricter penalties for acts of cruelty, especially the abandonment of domestic pets. Countries across the world are reforming their animal cruelty laws and enhancing punishments for animal cruelty.

    On punishment theories:

    • Inadequacies in the PCA Act (1960): The Prevention of Cruelty to Animals Act (PCA Act) is the primary legislation criminalizing various forms of cruelty towards animals in India.
    • Failure to Achieve Objectives: Despite being in place for several decades, the PCA Act has failed to achieve its main objective of preventing cruelty to animals effectively.

    Theories of punishment suggest that punishment serves three main goals:

    • Retribution: Retribution refers to punishment imposed to avenge the crime committed.In the context of animal cruelty, retribution could involve imposing punishment on perpetrators to seek justice for the harm inflicted on animals.
    • Deterrence: It aims to prevent future crimes by imposing punishment that dissuades both the perpetrator and the general public from engaging in similar behavior.
    • Reformation or Rehabilitation: It focuses on reforming the behavior of the perpetrator to prevent future offenses.

    Issues in PCA 1960 : 

    • Bail and Non-Cognisable Offences: Many offences under the PCA Act are bailable and non-cognisable, allowing accused individuals to seek bail easily and preventing immediate police action without court permission. This delays justice and hampers effective enforcement.
    • Inadequate Fines: The fines prescribed under the PCA Act have remained unchanged for over 130 years, rendering them insignificant and failing to act as a deterrent against animal cruelty. In many cases, fines are as low as ₹10, which does not reflect the seriousness of the offenses.
    • Discretionary Sentencing: The law grants courts discretion to choose between imposing imprisonment or a fine on offenders, even for severe cases of animal cruelty. This leniency allows perpetrators to evade appropriate punishment, undermining the deterrent effect of the law.
    • Lack of Rehabilitation Measures: The PCA Act lacks provisions for alternative forms of punishment such as community service, which could help reform perpetrators and address the root causes of animal cruelty.

    Steps taken by Government:

    • In November 2022, the Draft PCA (Amendment) Bill, 2022 was published by the Department of Animal Husbandry and Dairying for public comments. Despite widespread public support for the Draft Bill, it was not tabled in Parliament.
    • The Draft Bill includes significant amendments to the 1960 Act such as the inclusion of the five fundamental freedoms for animals, enhancement of the punishments and the amounts of money to be paid as fines for various offences, and addition of new cognisable offences.

    Way forward 

    • Legislative Reforms: Need to table the Draft PCA (Amendment) Bill, 2022 in Parliament for consideration and enactment.Enhance penalties and fines for animal cruelty to reflect the seriousness of the offenses and act as a deterrent.
    • Promotion of Public Awareness: Launch campaigns and awareness programs to educate the public about animal welfare and the consequences of cruelty.

    Mains PYQ 

    Q Discuss the significance of the lion and bull figures in Indian mythology, art and architecture. (UPSC IAS/2022)

  • Government Budgets

    Budgets and Bills passed with little deliberation

    Why in the news? 

    • Madhya Pradesh passed 85% of its Budget without discussion in 2023 followed by Kerala and Jharkhand.
    • These observations are based on repot of PRS Legislative Research’s Annual Review of State Laws 2023.The report analyses the performance of State legislatures in various key functions.

    BACK2BASICS: 

    What is Public Accounts Committee (PAC)? 

    • The inception of the Public Accounts Committee dates back to 1921 following its initial reference in the Government of India Act, 1919, commonly known as the Montford Reforms.
    • Currently, the formation of the Public Accounts Committee is an annual occurrence as per Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha.
    • The primary objective of the Public Accounts Committee (PAC) is to examine and scrutinize the government’s financial transactions and expenditures to ensure transparency, accountability, and proper utilization of public funds.

     

    Key points related to report on the performance of State legislatures in India in 2023:

    • Budget Passing Without Discussion: Nearly 40% of the ₹18.5 lakh crore budget presented by 10 States was passed without discussion. In some States like Madhya Pradesh, Kerala, Jharkhand, and West Bengal, a significant portion of the budget was passed without debate.
    • Public Accounts Committee (PAC) Inactivity: In five States, including Bihar, Delhi, Goa, Maharashtra, and Odisha, the PAC did not table any reports in 2023. Maharashtra’s PAC neither met nor released a report during the year.
    • Fast-Track Passage of Bills: A significant number of bills were passed quickly with minimal debate, with 44% passed either on the same day they were introduced or the next day. This trend was consistent with previous years, indicating a pattern of swift legislative activity.
    • Promulgation of Ordinances: 84 ordinances were promulgated in 20 States, covering various subjects such as new universities, public examinations, and ownership of apartments. Uttar Pradesh, Andhra Pradesh, and Maharashtra accounted for the highest number of ordinances.
    • Regional Disparities: There were regional disparities in legislative activity, with states like Tamil Nadu and Himachal Pradesh tabling a significant number of PAC reports, while others like Maharashtra and Bihar saw inactivity. Similarly, some states passed bills quickly, while others took more time for deliberation.

    Negative implication

    • Lack of Transparency: Budgets being passed without discussion indicate a lack of transparency and accountability in the budgetary process, potentially leading to decisions being made without proper scrutiny or public input.
    • Ineffective Oversight: The inactivity of Public Accounts Committees (PACs) in some states suggests a failure of oversight mechanisms, undermining the scrutiny of government expenditure and accountability for public funds.
    • Quality of  Legislation: The fast-track passage of bills with minimal debate raises concerns about the quality of legislation and the thoroughness of deliberation, potentially resulting in hastily drafted or poorly scrutinized laws.
    • Overuse of Ordinances: The high number of ordinances promulgated signifies a reliance on executive orders to bypass the legislative process, which can undermine democratic principles and the role of the legislature in lawmaking.

    Way forward 

    • Enhancing Transparency and Accountability: Mandate thorough discussions and debates on budgets before passage to ensure transparency and accountability in financial decision-making.Establish mechanisms for public participation and input in the budgetary process to increase transparency and foster citizen engagement.
    • Reforming Oversight Mechanisms: Strengthen the functioning of Public Accounts Committees (PACs) by ensuring regular meetings and timely submission of reports.Empower PACs with adequate resources, authority, and independence to effectively scrutinize government expenditure and promote accountability.

    Mains PYQ 

    Q Discuss the role of Public Accounts Committee in establishing accountability of the government to the people. (UPSC IAS/2017) 

  • Electoral Reforms In India

    EC’s Model Code of Conduct (MCC) Need Reforms

    Why in the news?

    The Election Commission of India (ECI) has issued notifications regarding complaints of violations of the Model Code of Conduct (MCC) against prominent leaders in India.

    Model Code of Conduct (MCC)

    • Set of guidelines : The Model Code of Conduct (MCC) is a set of guidelines issued by the Election Commission of India (EC) for political parties and candidates.
    • Aim: It aims to establish standards of conduct during election campaigns and polling.The MCC includes provisions for lodging complaints with EC observers and dictates the conduct of ministers from ruling parties during the MCC period.
    • In 2019, an addition was made concerning election manifestos, prohibiting promises contrary to constitutional ideals.
    • The MCC is not legally binding as it is not a statutory document enacted by Parliament.
    • While violating many MCC guidelines may not result in punitive action, certain actions are categorized as electoral offenses and corrupt practices under the Indian Penal Code and the Representation of the People Act, 1951.
    • Violators of these laws will face appropriate punishment.

    Evolution of MCC:

    • Origin: The Model Code of Conduct (MCC) originated as a small set of guidelines for the Assembly election in Kerala in 1960.
    • Initially, it covered various aspects such as the conduct of election meetings, processions, speeches, slogans, posters, and placards.
    • Expansion of MCC: Under Chief Election Commissioner (CEC) K V K Sundaram in 1968, the EC consulted with political parties and expanded the MCC to ensure minimum standards of behavior for free and fair elections.
    • Standard practice: By 1979, it became a standard practice for the EC to circulate the MCC before every General Election.
    • Consolidation of MCC: Over time, the MCC evolved further with consultations between the EC and political parties. In 1991, it was consolidated and re-issued with additional sections, including restrictions on the “party in power” to prevent the misuse of authority for unfair advantages.

    Features of MCC: 

    • Activation of MCC: The Model Code of Conduct (MCC) is activated immediately upon the announcement of the election schedule by the Election Commission and remains in effect until the completion of the election process, including the announcement of results.
    • Applicable on all election: It applies to all elections to the Lok Sabha, State Assemblies, State Legislative Council elections from Local Bodies, and Graduates’ and Teachers’ Constituencies.
    • Across all India: During General elections, the MCC is enforced across India, while during Legislative Assembly elections, it is enforced in the specific state going to polls.
    • Funded to adhere with MCC: All organizations, committees, corporations, and commissions funded wholly or partially by the Central or State governments are obligated to adhere to the MCC.
    • List of Political parties: In addition to listed political parties and candidates, non-political organizations conducting campaigns in support of a political party or candidate are also required to follow specific guidelines outlined by the Election Commission.

    Issues related to MCC: 

    • The political environment in the country has become more intense, leading to a decrease in the effectiveness of the Model Code of Conduct (MCC).
    • Instances of violations of the MCC are increasing rapidly and are becoming widespread and aggressive.
    • Political leaders are using their influence, resources, and persuasive tactics more aggressively than ever, often exploiting loopholes between the literal and intended meanings of the MCC.
    • Money power has become more prominent than physical strength, and advancements in technology have provided new ways to circumvent regulations.
    • The MCC lacks clarity on the consequences of violations, which weakens its ability to deter misconduct.
    • Delayed responses to violations reduce the impact of penalties and erode public trust in the Election Commission’s credibility.

    Way Forward

    • Strengthen Enforcement: Enhance the enforcement mechanisms to ensure strict adherence to the MCC guidelines. 
    • Technological Solutions: Leverage technology to improve monitoring and enforcement of MCC compliance. Implement tools such as social media monitoring, data analytics, and surveillance technology to detect and deter violations effectively.
    • Swift and Transparent Action: Ensure timely and transparent action against MCC violations. Establish clear protocols for investigating complaints and imposing penalties on violators. Swift action will enhance the deterrent effect of the MCC.

    Mains PYQ:

    Q ‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss. [2017]

  • Promoting Science and Technology – Missions,Policies & Schemes

    [pib] 46th Antarctic Treaty Consultative Meeting (ATCM 46)

    Why in the news?

    The Ministry of Earth Sciences (MoES) will host the 46th Antarctic Treaty Consultative Meeting (ATCM 46) in Kochi, Kerala.

    About Antarctic Treaty

    Details
    Signing and Entry into Force
    • Signed on December 1, 1959 at Washington DC.
    • Entered into force on June 23, 1961.
    • 12 Initial Countries: Argentina, Australia, Belgium, Chile, France, Japan, New Zealand, Norway, South Africa, the USSR, the UK, and the US.
    Objective Ensure Antarctica remains exclusively for peaceful purposes, free from international discord.
    Key Provisions
    • Art. I: Antarctica shall be used for peaceful purposes only
    • Art. II: Freedom of scientific investigation in Antarctica and cooperation
    • Art. III:  Scientific observations and results from Antarctica shall be exchanged and made freely available

     

    Territorial Claims
    • Prohibits new territorial claims.
    • Preserves existing territorial sovereignty claims.
    Disarmament
    • Prohibits testing of nuclear weapons.
    • Prohibits disposal of radioactive waste
    Consultative Meetings Annual Antarctic Treaty Consultative Meetings (ATCM) where member states discuss treaty implementation and cooperation
    Environmental Protection
    • Promotes protection of Antarctic environment.
    • Prohibits activities causing pollution or environmental damage
    Mineral Resource Exploitation
    • Bans mining activities until at least 2048.
    • Requires consensus for any review or modification
    Membership
      • 54 parties as of 2024.
      • 29 Consultative Parties actively participate in decision-making.
      • 25 Non-Consultative Parties.
    • India ratified the treaty in 1983.
    Madrid Protocol
    • Adopted in 1991.
    • Entered into force in 1998.
    • Strengthens environmental protection measures in Antarctic.

     

  • ISRO Missions and Discoveries

    Studies Suggest More Water Ice on Moon: ISRO 

    Why in the news?

    A study has revealed evidence for enhanced possibility of sub-surface water ice occurrence in the polar craters of the Moon, according to ISRO.

    Water Ice on Moon: ISRO’s Findings 

    • The research indicates that the amount of sub-surface ice within the first few meters is significantly greater, about 5-8x more, than that found on the lunar surface.
    • Moreover, the study reveals that the Northern Polar region harbors twice as much water ice as the southern polar region.
    • It highlights the necessity of drilling to access this ice for future missions and sustained human presence on the Moon.

    Origin of Water Ice:

    • The study validates the hypothesis that sub-surface water ice in lunar poles originated from out-gassing during volcanic activity in the Imbrian period.
    • It suggests that Lunar Mare Volcanism and preferential impact cratering govern the distribution of water ice on the Moon.

    Methodology:

    • The research team utilized seven instruments aboard the NASA robotic spacecraft Lunar Reconnaissance Orbiter (LRO), including radar, laser, optical, neutron spectrometer, ultra-violet spectrometer, and thermal radiometer. LRO hovers over Lunar South Pole.
    • These instruments provided crucial data to understand the origin and distribution of water ice on the lunar surface.

    Significance of the findings

    • Accurate knowledge of water ice distribution and depth is vital for identifying suitable landing and sampling sites for future lunar missions.
    • The study supports ISRO’s future plans for in-situ volatile exploration on the Moon, aligning with its broader lunar exploration objectives.

    PYQ:

    Q. Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology helped India in its socio-economic development? (2016)

  • Start-up Ecosystem In India

    10 Years of Street Vendors Act, 2014

    Why in the news?

    • It has been a decade since the enactment of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act on May 1, 2014.
    • It marks a significant milestone in the recognition of the rights and contributions of street vendors across India.

    About Street Vendors Act, 2014

      • The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, was enacted
        • Objective: To regulate street vendors in public areas and protect their rights.
      • It was introduced in the Lok Sabha (Lower House of the Parliament of India) on 6 September 2012 by then Union Minister of Housing and Urban Poverty Alleviation, Kumari Selja.
      • The Act came into force from 1 May 2014.
    • History:
      • 2004: The bill aimed at providing social security and livelihood rights to street vendors, has its origins in the ‘National Policy for Urban Street Vendors’ introduced in 2004.
      • 2009: It was later revised as ‘National Policy on Urban Street Vendors’ in 2009.
    • 3 Recognized categories of street vending:

    Key Provisions of the Bill:

    Details
    Town Vending Committee
    • Responsible for conducting surveys of all vendors, issuance of certificates of vending, and designation of vending zones.
    • Surveys to be conducted every 5 years.
    • No eviction until certificates are issued.
    • TVCs to have 40% representation of street vendor representatives and 33% of women street vendors.
    Designated Vending Zones
    • All street vendors to be accommodated in designated vending zones.
    • Allocation of space by drawing lots if necessary.
    • Those unable to secure space in the same zone to be accommodated in adjoining zones.
    Certificate of Vending
    • Granted to street vendors above 14 years of age.
    • Can be transferred to family members in certain circumstances.
    • Can be cancelled if conditions are breached.
    No-Vending Zones
    • Prohibits vending activities in designated no-vending zones.
    • Relocation provisions for affected vendors.
    • Notice period of at least 30 days for relocation.
    • Failure to vacate may result in penalties.
    Dispute Resolution Body Consists of a Chairperson (civil judge or judicial magistrate) and two other professionals.
    Responsibility of Local Authorities for Implementation Responsibility for creating schemes and implementation delegated to local municipalities.
    Role of Town Vending Committee Each zone or ward of the local authority to have a Town Vending Committee.
    Relocation and Penalties Vendors failing to relocate from no-vending zones after notice may face penalties, including fines.
    Representation and Legal Ambiguities Criticisms include lack of adequate representation of street vendors in decision-making bodies and legal ambiguities.

     

    Also read about: PM SVANidhi Scheme

    PYQ:

    [2016] How has globalization led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?

  • Festivals, Dances, Theatre, Literature, Art in News

    Patachitra Scroll Paintings

    Why in the news?

    Patachitra Paintings of women in Paschim Medinipur’s Pingla block in West Bengal has become popular worldwide.

    About Bengal Patachitra

    • Patachitra, also spelled as Pattachitra, is a traditional form of scroll painting that originated in the eastern Indian states of Odisha and West Bengal, as well as parts of Bangladesh. The term “Patachitra” derives from Sanskrit, where “pata” means “cloth” and “chitra” means “picture.”
    • These paintings are typically created on cloth canvas, palm leaves, or paper. Artists associated with Patachitra are known as Patuas.
    • Origin: Bengal Patachitra is believed to have originated in rural Bengal, with some historical references suggesting its existence during the Pre-Pala period.
    • Themes and Style:
      • The themes of Bengal Patachitra are diverse, ranging from religious and mythological narratives to secular subjects.
      • Religious themes often depict stories from Hindu epics like Ramayana and Mahabharata, as well as folklore such as Manasha and Chandi.
      • Secular themes include important news events, accidents, scandals, and social issues.
      • Each Patachitra is accompanied by a song called Patua Sangeet, sung by the artists while unfurling the scroll.
    • Aspects of Painting:
      • Chalchitra: Background paintings associated with religious idols, such as Durga Pratima.
      • Durga Pot: Special Patachitras worshiped during Durga Puja, often featuring images of gods and goddesses.
      • Various Technique: Different districts have distinct techniques, colors, and designs. For example, Purulia Patachitras prefer burnt sienna with white and yellow patches, while Hooghly and Manbhum scrolls exhibit modernistic abstract linear treatment.
      • Artists: Bengal Patua artists, also known as Chitrakars, are concentrated in villages like Naya in the Medinipur district.
      • Colors: Bengal Patachitra typically uses natural colors derived from materials like chalk dust (for white), pauri (for yellow), cultivated indigo (for blue), bhushakali (for black), and mete sindur (for red).
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    [PREMIUM] Views on inflation: A matter of interest

    Why in the News? 

    AAZData released showed that Retail Inflation had edged marginally upward last month.

    What is Inflation?

    • Inflation, as per the definition provided by the International Monetary Fund, represents the pace at which prices rise within a specified timeframe, covering a comprehensive assessment of general price escalations or those about particular goods and services. To measure the inflation there are different types of inflation index.
    • An Inflation Index is a statistical measure used to track changes in the overall price level of goods and services in an economy over a specific period. It quantifies the rate of inflation by comparing the current prices of a selected basket of goods and services to their prices in a base period.

    In India, there are primarily two types of inflation indices used to measure price changes:

    • Consumer Price Index (CPI): The CPI measures changes in the prices paid by urban and rural consumers for a basket of goods and services. It provides insights into inflation experienced by households and is divided into various sub-indices based on categories such as food, fuel, clothing, housing, transportation, medical care, recreation, and education. The Government of India releases multiple CPI indices, including:
    1. CPI for Industrial Workers (CPI-IW)
    2. CPI for Agricultural Labourers (CPI-AL)
    3. CPI for Rural Labourers (CPI-RL)
    4. CPI for Urban Non-Manual Employees (CPI-UNME)
    5. CPI for Rural (CPI-R)
    6. CPI for Urban (CPI-U)
    • Wholesale Price Index (WPI): The WPI tracks changes in the prices of goods at the wholesale level. It includes the prices of commodities traded in bulk such as agricultural products, minerals, crude oil, manufactured products, and electricity. The Office of the Economic Adviser, under the Department for Promotion of Industry and Internal Trade (DPIIT), releases the WPI every month.

    What is Retail Inflation? 

    • Retail inflation, also known as Consumer Price Index (CPI) inflation, tracks the change in retail prices of goods and services that households purchase for their daily consumption. CPI is calculated for a fixed basket of goods and services that may or may not be altered by the government from time to time.
    • How it is Calculated?
      • A representative basket of goods and services is selected to represent the typical consumption patterns of households
      • The cost of the basket of goods and services is calculated for a base period.
      • The CPI is calculated by dividing the cost of the basket in the current period by the cost of the basket in the base period and multiplying by 100.
      • The inflation rate is calculated by comparing the CPI of the current period with the CPI of the base period.

    Key points as per AAZData released by the National Statistical Office:

    • Retail Inflation Data: The National Statistical Office reported that retail inflation in India increased marginally, rising to 5.69% in December from 5.55% in November, primarily driven by higher food inflation
    • Cause of inflation: RBI Governor Shaktikanta Das had anticipated the rise in inflation due to risks in food prices, cautioning about potential second-round effects
    • Food Inflation: The Consumer Food Price Index surged to 9.53% in December, up from 8.7% in November, with notable inflation in cereals, vegetables, pulses, sugar, and spices
    • Industrial Production: The index of industrial production slowed to 2.4% in November, partly due to the base effect, with a 6.4% increase in industrial output for the first eight months of the year (April-November)
    • Monetary Policy Committee (MPC) Actions: The MPC maintained the status quo on rates and stance in the last meeting, focusing on withdrawing accommodation to align inflation with the target of 4%
    • Future Monetary Policy: There are discussions within the MPC about the necessity of an interest rate cut to prevent excessive real interest rates, especially as inflation is projected to moderate in the coming quarters

    Way Forward

    • Monetary Policy Adjustment: The Reserve Bank of India (RBI) could consider implementing a cautious monetary policy stance, possibly by tightening monetary policy through measures such as raising the repo rate. This would help curb inflationary pressures by reducing liquidity in the economy and making borrowing more expensive.
    • Supply-Side Interventions: The government could focus on addressing supply-side constraints in the agricultural sector to mitigate food price inflation. This might involve measures such as improving infrastructure, increasing agricultural productivity, reducing post-harvest losses, and enhancing market efficiency through better distribution networks.
    • Fiscal Policy Support: The government could also provide fiscal support to sectors facing supply-side disruptions or demand constraints, which could help stabilize prices and support economic growth. Targeted fiscal measures, such as subsidies for essential commodities or infrastructure investments, could be considered to address specific challenges contributing to inflation.

    Mains PYQ 

    Q Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (UPSC IAS/2022)

    Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)

    Prelims PYQ 

    Consider the following statements:(UPSC IAS/2020)

    1) The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

    2) The WPI does not capture changes in the prices of services, which CPI does.

    3) Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

    Which of the statements give above is/are correct?

    a) 1 and 2 only

    b) 2 only

    c) 3 only

    d) 1, 2 and 3

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