Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rythu Bandhu
Mains level: Paper 3- PM-KISAN and issues
The article highlights the challenge of exclusion error in the PM-KISAN and suggests measures to deal with the issue by drawing on the success of KALIA and Rythu Bandhu.
Exclusion in PM-KISAN
- Budget FY22 announced an allocation of Rs 65,000 crore to the PM-Kisan scheme.
- Since 2019, the PM-Kisan has been the largest component of the agriculture budget each year.
- The scheme is targeted at farmers who own cultivable land as per land records of the state.
- Unfortunately, this leaves out vulnerable sections such as tenant farmers, women farmers, tribal families and landless labourers.
- The exclusion is the result of the challenge of first identifying these people, since our existing systems do not formally recognise them as farmers.
The need to identify farmers
- Despite 73.2% of rural women engaging in agriculture, only 12.8% are reported to own land.
- Among tribal communities, of the 20 million tribal families, less than 2 million have received individual forest rights pattas; the rest are ‘invisible’ and left out of government safety nets.
- Landless agricultural labourers and tenant farmers account for close to 150 million people in rural India, and they too are not part of state land records.
- Although there are multiple welfare schemes for farmers, there is no standard government definition of a farmer.
- The 2007 MS Swaminathan Committee called out that the term ‘farmer’ would include any person actively engaged in growing crops and other agricultural commodities, and would include not only landholders, but also cultivators, labourers, sharecroppers, tenants and tribal families, amongst others.
Learning from KALIA and Rythu Bandhu
- Odisha has been a frontrunner in implementing an inclusive farmer welfare scheme, the KALIA.
- The KALIA provides an unconditional income support of Rs 12,500 to landless agricultural households and an annual Rs 10,000 to small and marginal land-owning farmers as well as tenant farmers.
- Odisha leveraged existing databases such as the Paddy Procurement Automation System, the Pradhan Mantri Fasal Bima Yojana and the National Food Security Act, and deployed close to 50,000 government staff at state, district and block levels to conduct extensive on-ground verification to identify eligible beneficiaries.
- Telangana took a different approach prior to rolling out the Rythu Bandhu Scheme, a direct benefit transfer scheme for land-owning farmers.
- The Rythu Bandhu Scheme targeted only land-owning farmers.
- But the state took on the onus of updating land records before implementing the scheme.
- The revenue and agriculture departments partnered to undertake a state-wide Land Records Updation Programme (LRUP).
- This shows that updating and digitising land records databasse is possible with focused efforts.
Way forward
- Instead of every scheme having its own farmer beneficiary database, the ideal solution would be to leverage the existing land records databases in every state.
- The design should ensure women’s names are not excluded.
- Implementation of the Forest Rights Act 2006 needs to be accelerated so that tribal families receive forest rights pattas and become part of the land records database.
- The next challenge is to build in incentives in the process to encourage the maintenance of the land record database, such that all future transactions such as sale, gift etc. are regularly updated to increase the reliability of the records.
Consider the question “How lack of definition of farmer leads to inclusion and exclusion errors in the schemes for farmers. Suggest the measures to deal with the issue.”
Conclusion
The pandemic, more so than anything else, has highlighted the need for the government to have robust social security mechanisms to reach the most vulnerable sections of the population, and making PM-Kisan more inclusive is an important step in that direction.
Source:
https://www.financialexpress.com/opinion/pm-kisan-income-support-to-farmers-needs-to-be-more-inclusive/2217436/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: JCPOA
Mains level: Paper 2- Role IAEA can play in rescuing JCPOA
The article explains how IAEA could play an important role in finding a solution to the stalemate between the U.S. and Iran on JCPOA.
Issue of Iran’s return to JCPOA
- There is uncertainty between the U.S. and Iran on the Joint Comprehensive Plan of Action (JCPOA) as to whether Iranian compliance comes first or the lifting of sanctions by the U.S.
- In this context, the International Atomic Energy Agency (IAEA) is back on the stage to rescue the JCPOA.
- The U.S. tried to pressurise Iran by proposing a resolution in the IAEA Board of Governors meeting criticising Iranian non-compliance with the JCPOA and its alleged IAEA safeguards violations.
- This comes amidst rumours that Iran might withdraw from the Non-Proliferation Treaty (NPT).
Iran may follow Indian model on creating a deterrent
- Foreign Policy recently noted that Iranian society increasingly see the weapon not just as an ultimate deterrent but as a panacea for Iran’s chronic security problems and challenges to its sovereignty by foreign powers.
- If the stalemate continues on JCPOA, because of the U.S. pressure, public opinion may shift towards the Indian model of creating a deterrent and then seeking a special dispensation to avoid severe sanctions.
- But the risks involved in such a policy will be grave, including the possibility of military action by Israel.
Relation between IAEA and NPT
- The IAEA is neither the Secretariat of the NPT nor is it empowered to request States to adhere to it.
- . It does, however, have formal responsibility in the context of implementing Article III of the Treaty.
- At the broadest level, the IAEA provides two service functions under the NPT.
- 1) It facilitates and provides a channel for endeavours aimed at further development of the applications of nuclear energy for peaceful purposes.
- 2) It administer international nuclear safeguards, in accordance with Article III of the Treaty, to verify fulfilment of the non-proliferation commitment assumed by non-nuclear-weapon States party to the Treaty.
- The NPT assigns to the IAEA the responsibility for verifying, at the global level, through its safeguards system, that non-nuclear weapon States fulfil their obligations not to use their peaceful nuclear activities to develop any nuclear explosive devices of any kind.
How IAEA could play role in JCPOA
- Accordingly, the Iranian file could go back to the IAEA to start fresh negotiations to restrain Iran to remain within the permissible level of enrichment of uranium.
- This may mean going back to the pre-six nation initiative, when the IAEA could not certify that Iran was not engaged in weapon activities.
- With the experience of the JCPOA, any new arrangement has to ensure the following:
- 1) Iran must have sanctions relief.
- 2) The stockpile of enriched uranium should not exceed the limits established.
- 3) There should be guarantees that Iran will not violate the safeguards agreement.
- The test is whether these can be accomplished within the framework of the IAEA.
Way forward
- Since the IAEA is a technical body, its deliberations may be kept at the technical level.
- At the same time, since it is open for the IAEA to report to the Security Council for necessary action, the IAEA will have the necessary clout to insist on the implementation of the NPT and its additional protocol.
- A new avenue may open for Iran to continue its peaceful nuclear activities as permitted in the NPT.
Consider the question “Examine the role played by IAEA under NPT. How this role can help IAEA in breaking the ice between Iran and the U.S. on JCPOA?”
Conclusion
Thus, IAEA can play an important role in ending the statement JCPOA finds itself in and ensure compliance from Iran on JCPOA and lifting sanctions by the U.S.
Back2Basics: Article III of NPT
- This article provides for the application of safeguards to ensure that nuclear material in non-nuclear weapon states (NNWS) isn’t diverted to nuclear weapons or other nuclear explosive devices.
- NNWS must place all nuclear materials in all peaceful nuclear activities under IAEA safeguards.
- Each nuclear weapon state (NWS) will not provide nuclear materials or equipment to a NNWS without an IAEA safeguards agreement.
- The safeguards should comply with Article IV of the NPT, and should not hamper peaceful uses of nuclear technology or economic/technical development in general.
- Safeguards agreements can be concluded on an individual or group basis.
- After the entry into force of the NPT, state parties had 180 days to commence negotiation of a safeguards agreement. Currently, state parties must begin negotiations by the date they deposit their instruments of ratification or accession.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Factors driving FDI in India
The article explains the four factors that explain the FDI inflows in India.
India’s economic decade
- Almost every major global company is either contemplating or operating on the assumption that India is a key part of their growth story.
- Google, Facebook, Walmart, Samsung, Foxconn, and Silver Lake have been just a handful of the firms that made huge investments in Inda.
- As a result, India saw the fastest growth in Foreign Direct Investment (FDI) inflows among all the major economies last year.
- Meanwhile, India’s latest FDI totals still lags behind the highest tallies in other markets such as China and Brazil.
Issues faced by investors and factors driving investment
- Frequent shifts in the policy landscape and persistent market access barriers are standard complaints levied against India by the business community.
- The government’s push to build a “self-reliant” India has also rattled skittish investors and smaller companies that lack the resources to navigate on-the-ground hurdles.
- Still, investors recognise that doing business in India — or any emerging market — comes with inherent risks but that adaptation in approach is critical to success.
- Four core dynamics drive this calculus and explain why multinational companies are making India an essential part of their growth story.
4 Factors driving FDI in India
1) India’s population
- What India offers through its nearly 1.4 billion people and their growing purchasing power is uniquely valuable for multinationals with global ambitions.
- No other country outside of China has a market that houses nearly one in six people on the planet and a rising middle class of 600 million.
2) Shifting geopolitics
- Rising U.S.-China competition is forcing multinationals to rethink their footprints and production hubs.
- Savvy countries such as Vietnam have capitalised on this opportunity to great effect, but India is finally getting serious about attracting large-scale production and exports.
3) Digital connectivity
- Cheap mobile data have powered a revolution across India’s digital economy and connected an estimated 700 million Indians to the Internet.
- More than 500 million Indians still remain offline, this is a key reason why leading global tech companies are investing in India and weathering acute policy pressure.
- Domestic Indian companies have also demonstrated their ability to innovate and deliver high quality services at scale.
- The partnerships and FDI flows linking multinationals and Indian tech firms will continue to unlock shared market opportunities for years to come.
4) National resilience
- Despite facing the scourge of the novel coronavirus head on, India has managed the pandemic better than many of its western peers and restored economic activity even before implementing a mass vaccination programme.
- These are remarkable developments, and yet they speak to India’s underlying resilience even in the face of historic challenges.
Shared value creation
- Unlocking opportunities in the Indian market cannot take the form of a one-way wealth transfer.
- Companies need to demonstrate their commitment to India.
- Successful companies do this by placing shared value creation at the heart of their business strategy.
- They tie corporate success to India’s growth and development.
- They forge enduring partnerships and lasting relationships, elevate and invest in Indian talent, align products with Indian tastes, and ultimately tackle the hardest problems facing India today.
Consider the question “Despite the issues faced by the investors, India witnessed the fastest growth in the FDI inflows among all the major economies amid pandemic. In light of this, examine the factors driving the FDI in India.”
Conclusion
For leading companies with global ambitions and a willingness to make big bets, the rewards of investing in the Indian market are substantial and well worth pursuing.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mizo-Mynmar ethnic ties
Mains level: Myanmar coup and its impact on India
India has sealed all entry points along the border with the southeast Asian neighbour and is closely monitoring to prevent any Myanmar nationals from entering the country.
Issue: Problem with refugees
- At least 1,000 people from the adjoining Chin State of Myanmar are said to have crossed over to Mizoram, fearing a military crackdown.
- The Mizoram government favours providing refuge to the Chins that are ethnically related to the majority Mizos in the State.
- However, the Ministry of Home Affairs has made it clear that “India is not a signatory to the 1951 UN Convention relating to the Status of Refugees and the 1967 Protocol theron”.
When did the refugees start arriving?
- Mizoram began feeling the heat a month after the military coup when three police personnel crossed over to Lungkawlh village in Serchhip district.
- The influx of Myanmar nationals was reported from Hnahthial, Champhai, Saitual and Serchhip districts.
- Most of the refugees waded across the Tiau River that runs along much of Mizoram’s 510-km border with Myanmar.
Try answering this:
The cross-border movement of insurgents is only one of the several security challenges facing the policing of the border in North-East India. Examine the various challenges currently emanating across the India-Myanmar border. Also, discuss the steps to counter the challenges. (15 Marks)
Is this the first time this has happened?
- Extremism, counter-insurgency and sectarian violence have driven people out of Myanmar into India in the past as well.
- More than 1,200 Buddhists and Christians from Myanmar’s Arakan State had taken refuge in Mizoram’s Lawngtlai district in 2017.
- They fled their homes after the Myanmar Army clashed with the extremist Arakan Army.
- The refugees stayed back for more than a year. Thousands of Chins are said to be living in Mizoram for more than 40 years now.
How porous is the border?
Unlike India’s border with Pakistan and Bangladesh, much of the border with Myanmar is without any fence.
- The Assam Rifles personnel guard the border but a tough terrain comes in the way of maintaining airtight vigil.
- There have been calls to fence the border. Fencing the border would also help in checking the movement of extremist groups to and from Myanmar.
- Some are against the idea, insisting that a fence would make the “free movement” of border residents into each other’s country difficult.
- The two countries had in 2018 agreed to streamline the movement of people within 16 km of the border on either side.
Note: Myanmar has indefinitely stalled the agreement to streamline the free movement of people within 16 km along the border citing domestic issues.
Mizoram welcomes the refugees
- As a humanitarian gesture, the Mizoram government has issued a standard operating procedure (SOP) to Deputy Commissioners of border districts to facilitate the entry of refugees and migrants.
- The SOP stated that all Myanmar nationals entering Mizoram in connection with the political developments in the country shall be properly identified.
- The government said those facing a threat to their lives should be treated as refugees, given medical care, relief and rehabilitation and security.
Where do the Centre and Mizoram stand now?
- The SOP was revoked on March 6 after the Centre conveyed its displeasure to the State over the development.
- The State governments have no powers to grant “refugee status to any foreigner”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Helium and its practical uses
Mains level: Helium imports of India
India imports helium for its needs and with the U.S. appearing set to cut off exports of helium since 2021, the Indian industry stands to lose out heavily.
Helium is not just for balloons but it is the key ingredient for India’s high technology and the most sophisticated medical diagnosis.
Helium on Earth
- Helium is a chemical element with the symbol He and atomic number 2.
- It is a colourless, odourless, tasteless, non-toxic, inert, monatomic gas, the first in the noble gas group in the periodic table. Its boiling point is the lowest among all the elements.
Its discovery
- In 1906 a young Englishman by the name of Moris Travers arrived in Bangalore, to take up the position of the Director of Indian Institute of Science.
- Travers extracted helium in small quantity by heating up monazite sand abundantly available in Kerala beach, in a pioneering effort.
- Dutch physicist Kamerlingh Onnes liquefied Helium by cooling the gas to -270 degrees Celsius.
- It is known that Onnes collected helium gas from the springs of Bath in Baden Baden, Germany for his liquefaction experiment.
Helium in India
- India’s Rajmahal volcanic basin is the storehouse of helium trapped for billions of years, since the very birth of our Earth from the Sun.
- At present, researchers are mapping the Rajmahal basin extensively for future exploration and harnessing of helium.
Why India needs Helium?
- Every year, India imports helium worth Rs 55,000 crores from the U.S. to meet its needs.
- Helium is used in medicine, scientific research, for blimp inflation, party balloons as well as having welding applications.
- It finds many applications, mainly in magnetic resonance imaging (MRI) scans, in rockets and in nuclear reactors.
US monopoly in Helium
- The U.S. became the most important exporter of helium across the world.
- It was soon realized that the U.S. was also the biggest storehouse of helium.
- The US is now planning to switch off the export of helium from 2021.
- Qatar is a possible exporter but acute political and diplomatic wrangles have made Qatar unreliable.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Drift of Indian plate from Gondwanaland
Mains level: History of Indian Monsoon
Using leaf fossils, researchers have found that the Indian monsoon 25 million years ago resembled present-day Australia’s.
Try this PYQ:
Q.Which one of the following is the appropriate reason for considering the Gondwana rocks as the most important rock systems of India?
(a) More than 90% of limestone reserves of India are found in them
(b) More than 90% of India’s coal reserves are found in them
(c) More than 90% of fertile black cotton soils are spread over them
(d) None of the reasons given above is appropriate in this context
India’s drift
- About 180 million years ago, India separated from the ancient supercontinent Gondwana and took a long northward journey of about 9,000 km to join Eurasia.
- During this journey, the subcontinent moved from the southern hemisphere, crossed the Equator to reach its current position in the northern hemisphere.
- Due to these changing latitudes, it experienced different climatic conditions, and a new study has now tried to map these climatic variations using leaf fossils.
Clueless over the evolution of monsoon
- The evolution of the monsoonal climate in India is still debatable and not fully understood.
- Though recent data indicates that the monsoon system we experience now dates back to about 25 million years, it is still unclear how the climate was during its long voyage.
Indian research
- The researchers analysed the morphological characters of fossil leaves collected from Deccan Volcanic Province, East Garo Hills of Meghalaya, Gurha mine in Rajasthan and Makum Coalfield in Assam.
- The four fossil assemblages were found to be from four different geological ages.
- It has been observed from across the globe that plant leaf morphological characters such as apex, base and shape are ecologically tuned with the prevailing climatic conditions.
- The research applied this model to characterize the past monsoon from fossil leaves.
It’s finding
- The results indicated that the fossil leaves from India were adapted to an Australian type of monsoon and not the current Indian monsoon system during its voyage.
- The reconstructed temperature data show that the climate was warm (tropical to subtropical) at all the studied fossil sites with temperatures varying from 16.3–21.3 degrees C.
- All the fossil sites experienced high rainfall, which varied from 191.6 cm to 232 cm.
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From UPSC perspective, the following things are important :
Prelims level: Lachit Borphukan
Mains level: Not Much
The Prime Minister (in an election campaign) has called 17th-century Ahom General Lachit Borphukan a symbol of India’s “atmanirbhar” military might.
Try this PYQ:
Q.What was the immediate cause for Ahmad Shah Abdali to invade and fight the Third Battle of Panipat:
(a) He wanted to avenge the expulsion by Marathas of his viceroy Timur Shah from Lahore
(b) The frustrated governor of Jullundhar Adina Beg khan invited him to invade Punjab
(c) He wanted to punish Mughal administration for non-payment of the revenues of the Chahar Mahal (Gujrat Aurangabad, Sialkot and Pasrur)
(d) He wanted to annex all the fertile plains of Punjab upto borders of Delhi to his kingdom
Who was Lachit Borphukan?
- The year was 1671 and the decisive Battle of Saraighat was fought on the raging waters of the Brahmaputra.
- On one side was Mughal Emperor Aurangzeb’s army headed by Ram Singh of Amer (Jaipur) and on the other was the Ahom General Lachit Borphukan.
- He was a commander in the Ahom kingdom, located in present-day Assam.
- Ram Singh failed to make any advance against the Assamese army during the first phase of the war.
- Lachit Borphukan emerged victorious in the war and the Mughals were forced to retreat from Guwahati.
Lachit Diwas
- On 24 November each year, Lachit Divas is celebrated statewide in Assam to commemorate the heroism of Lachit Borphukan.
- On this day, Borphukan has defeated the Mughal army on the banks of the Brahmaputra in the Battle of Saraighat in 1671.
- The best passing out cadet of National Defence Academy has conferred the Lachit gold medal every year since 1999 commemorating his valour.
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From UPSC perspective, the following things are important :
Prelims level: History of Delhi
Mains level: Delhi sultanate
The Union government has recently formed a committee to popularize the legacy of 11th-century Tomar king, Anangpal II.
Revision: Delhi Sultanate and their contemporaries
Who was Anangpal II?
- Anangpal II, popularly known as Anangpal Tomar, belonged to the Tomar dynasty that ruled parts of present-day Delhi and Haryana between the 8th and 12th centuries.
- The capital of Tomars changed many times from being initially at Anangpur (near Faridabad) during the reign of Anangpal I (who founded the Tomar dynasty in the 8th century), to Dhillikapuri (Delhi) during the reign of Anangpal II.
- The Tomar rule over the region is attested by multiple inscriptions and coins, and their ancestry can be traced to the Pandavas (of the Mahabharata).
- Anangpal Tomar II was succeeded by his grandson Prithviraj Chauhan, who was defeated by the Ghurid forces in the Battle of Tarain (present-day Haryana) after which the Delhi Sultanate was established in 1192.
His connection with Delhi
- Anangpal II is credited to have established and populated Delhi during his reign in the 11th century.
- He was instrumental in populating Indraprastha and giving it its present name, Delhi.
- The region was in ruins when he ascended the throne in the 11th century, it was he who built Lal Kot fort and Anangtal Baoli.
- He was the founder of Dhillikapuri, which eventually became Delhi.
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From UPSC perspective, the following things are important :
Prelims level: Jaapi, Xorai and Gamosa
Mains level: NA
As the polling date draws closer, decorative jaapis (field hats), hand-woven gamosas and bell-metal xorais are making frequent appearances in Assam.
Primarily used to felicitate important people and guests, these important symbols of Assamese identity and culture are abundantly seen in political campaigns across the state.
Jaapi
- The jaapi is a conical hat made of bamboo and covered with dried tokou (a palm tree found in rainforests of Upper Assam) leaves.
- It is most often used in official functions to felicitate guests.
- The landscape of rural Assam features a more utilitarian version, which farmers wear to protect themselves from the harsh weather, both sun and rain, while working in the fields.
- The first possible recorded use of jaapi dates back to the Ahom-era buranjis, or chronicles. Kings and ministers would wear them then.
Gamosa
- The Gamosa, which literally translates to a cloth to wipe one’s body, is omnipresent in Assam, with wide-ranging uses.
- It can be used at home as a towel (uka gamosa) or in public functions (phulam/floral gamosa) to felicitate dignitaries or celebrities.
- The popularity of the gamosa has now traveled beyond Assam and is often used by a number of public figures.
- It was during the anti-foreigner Assam Agitation of the early 1980s, when Assamese nationalism reached its crescendo, that the gamosa assumed a new role.
Xorai
- Made of bell-metal, the xorai — essentially a tray with a stand at the bottom, with or without a cover — can be found in every Assamese household.
- While it is primarily used as an offering tray during prayers, or to serve tamale-paan (betel-nut) to guests, a xorai is also presented along with the jaapi and gamosa while felicitating someone.
- The bulk of xorais in Assam are made in the state’s bell metal hub Sarthebari in Bajali district.
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From UPSC perspective, the following things are important :
Prelims level: Vehicle scrapping policy
Mains level: Paper 3- Advantages of scrapping policy to steel industry
The article explains the advantages of the vehicle scrapping policy announced in the Budget FY22.
Greenhouse gas contribution steel industry
- Steel industry uses carbon as the main reducing agent as also as a fuel for steel production.
- GHG emissions of the Indian steel industry is 2.0-2.8 tonnes of CO2 per tonne of crude steel, against global average of 1.8 tonne of CO2.
Scrapping policy
- Two seminal announcements have been made in Budget FY22, viz. introduction of vehicle scrapping policy and doubling ship-breaking capacity to 9 million tonnes per year.
- This will minimise dependence on import of scrap and cause a reduction of the GHG footprint of iron & steel.
Producing steel using scrap
- Most steel-producing countries are trying to bring down emissions by shifting from iron-ore-based production to scrap-based production.
- This route can bring CO2 emissions down to below 0.5 tonne of CO2 per tonne of steel.
- Although most steel-producing countries are using Electric Arc Furnaces (EAF) for scrap-based production, in India, both EAF and Induction Furnaces (IF) are used.
- The main CO2 load in EAF-based steel production doesn’t come from the off-gas but from producing the electricity used in melting of the scrap.
- Thus, this can be further reduced if renewable power is used as a source of electricity.
Saving in forex spending
- Availability of ferrous scrap in India is very limited—around 25 million tonnes annually from domestic sources.
- In 2018-19 and 2019-20, the country imported nearly 6.5 million tonnes of scrap each year and thus large forex spending was incurrred.
- With the announcement of vehicle scrapping policy, steel industry can expect enhanced indigenous availability of ferrous scrap.
Strengthening the resource efficiency and circular economy
- The quality of the steel produced is dependent upon the quality of input material and hence any improvement made in ensuring quality of scrap will have marked influence on the steel produced.
- This shall strengthen the process of resource efficiency & circular economy as considerable natural resources shall be conserved with significant reduction in emission and it will help in moving towards a sustainable steel industry.
Consider the question “Discuss the advantages of vehicle scrapping policy announced by the government in Budget FY 22.”
Conclusion
The announcement of the vehicle scrapping policy couldn’t have come at a better time for steel industry in India, as well since the country lacks desired quality of coking coal and natural gas is also imported.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India's nuanced approach to Quad
The article discusses the outcomes of the recently concluded first Quad Summit in the context of India.
Message to China after Quad summit
- The first Learders’ Summit of the Quadrilateral Framework was held on March 12.
- This Summit conveyed a three-pronged message to China:
- 1) Under the new U.S. President, “America is back” in terms of its desire to play a leading role in other regions.
- 2) It views China as its primary challenger for that leadership.
- 3) The Quad partnership is ready to mount a counter-challenge, albeit in “soft-power” terms at present, in order to do so.
- For both Japan and Australia the outcomes of the summit, both in terms of the “3C’s”working groups established on COVID-19 vaccines, Climate Change and Critical Technology and in terms of this messaging to the “4th C” (China) are very welcome.
4 Outcomes of Quad Summit for India
- For India the outcomes of the Quad Summit need more nuanced analysis.
1) COVID-19 Vaccine
- India is not only the world’s largest manufacturer of vaccines (by number of doses produced, it has already exported 58 million doses to nearly 71 countries.
- It is also manufacturing a billion doses for South East Asia (under the Quad), over and above its current international commitments.
- India has also planned to vaccinate 300 million people as originally planned by September.
- All this comes down to total 1.8 billion doses which will require a major ramp up in capacity and funding, and will bear testimony to the power of Quad cooperation, if realised.
- However, the effort could have been made much easier had India’s Quad partners also announced dropping their opposition to India’s plea at the World Trade Organization.
- India had filed the plea along with South Africa in October 2020, seeking waiver from certain provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights for the prevention, containment and treatment of COVID-19.
2) Climate change
- On climate change, India has welcomed the return of the U.S. to the Paris accord.
- Mr. Biden has promised to restart the U.S.’s funding of the global Green Climate Fund, which Mr. Trump ended.
- India still awaits a large part of the $1.4 billion commitment by the U.S. to finance solar technology in 2016.
- Mr. Biden might also consider joining the International Solar Alliance, which the other Quad members are a part of, but the U.S.
3) Critical technology
- India will welcome any assistance in reducing its dependence on Chinese telecommunication equipment and in finding new sources of rare-earth minerals.
- India would oppose Quad partners weighing in on international rule-making on the digital economy, or data localisation.
- Such a move had led New Delhi to walk out of the Japan-led “Osaka track declaration” at the G-20 in 2019.
4) Dealing with China
- On this issue, it is still unclear how India can go on the Quad’s intended outcomes.
- While India shares the deep concerns and the tough messaging set out by the Quad on China, especially after the year-long stand-off at the Line of Actual Control (LAC) and the killings at Galwan that India has faced, it has demurred from any non-bilateral statement on it.
- India is the only Quad member not a part of the military alliance that binds the other members.
- India is also the only Quad country with a land boundary with China.
- And it is the only Quad country which lives in a neighbourhood where China has made deep inroads.
- Indian officials are still engaged in LAC disengagement talks and have a long way to go to de-escalation or status quo ante.
3 long term impacts on strategic planning
- The violence at the LAC has also left three long-term impacts on Indian strategic planning:
- First, the government must now expend more resources, troops, infrastructure funds to the LAC and ensure no recurrence of the People’s Liberation Army April 2020 incursions.
- Second, India’s most potent territorial threat will not be from either China or Pakistan, but from both i.e. “two-front situation”.
- Third, that India’s continental threat perception will need to be prioritised against any maritime commitments the Quad may claim, especially further afield in the Pacific Ocean.
Consider the question “The Quad’s ideology of a “diamond of democracies” can only succeed if it does not insist on exclusivity in India’s strategic calculations given that India shares a special place among the Quad members when it comes to its relationship with China. Comment”
Conclusion
Despite last week’s Quad Summit, India’s choices for its Quad strategy will continue to be guided as much by its location on land as it is by its close friendships with fellow democracies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GHI
Mains level: Poverty and Hunger
Union Minister of State for Agriculture has questioned the methodology and data accuracy of the Global Hunger Index (GHI) report, which has placed India at 94th (out of 107 countries) rank in 2020.
About GHI
- GHI is a peer-reviewed annual report, jointly published by Concern Worldwide, an Ireland-based humanitarian group, and Welthungerhilfe, a Germany-based NGO.
- It is designed to comprehensively measure and track hunger at the global, regional, and country levels.
- It says the aim of publishing the report is to trigger action to reduce hunger around the world.
- According to the GHI website, the data for the indicators come from the United Nations and other multilateral agencies, including the World Health Organisation and the World Bank.
Various indicators used
- UNDERNOURISHMENT: the share of the population that is undernourished (that is, whose caloric intake is insufficient);
- CHILD WASTING: the share of children under the age of five who are wasted (that is, who have low weight for their height, reflecting acute undernutrition);
- CHILD STUNTING: the share of children under the age of five who are stunted (that is, who have low height for their age, reflecting chronic undernutrition); and
- CHILD MORTALITY: the mortality rate of children under the age of five (in part, a reflection of the fatal mix of inadequate nutrition and unhealthy environments).
What is the concern?
- India was ranked below countries such as Nepal, Bangladesh and Myanmar when it was among the top 10 food-producing countries in the world.
Actual scenario
- The Comprehensive National Nutrition Survey (CNNS) compiled in 2017-18 showed an improvement of 4%, 3.7% and 2.3% in wasted, stunted and malnourished children respectively.
- The first-ever CNNS was commissioned by the government in 2016 and was conducted from 2016-18, led by the Union Health Ministry, in collaboration with the UNICEF.
- The findings were published in 2019. CNNS includes only nutrition data, whereas NFHS encompasses overall health indicators.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Vehicle Scrappage Policy
Auto majors have welcomed the new vehicle scrappage policy rolled out by Union Minister for Road Transport and Highways, saying it would encourage people to replace old vehicles while boosting the sector.
Under the policy, those choosing to voluntarily scrap their old vehicles will get financial incentives from the government and the automaker.
Vehicle Scrappage Policy: Key Highlights
- Personal vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo a fitness test at the government registered ‘Automated Fitness Centres’.
- Vehicles that fail to pass the test will be declared as ‘end-of-life vehicles’, which would mean that the vehicle would have to be recycled.
- This will pave the way for older vehicles to be scrapped.
- In case, the vehicles pass the test, owners will have to pay a hefty fee for re-registration.
- According to the new policy, the re-registration fee would be hiked around eight times for personal vehicles, and around 20 times for commercial vehicles.
What Are Automated Fitness Centres?
- Every vehicle will have to go under a mandatory fitness test at the automated fitness centres.
- The government aims to have at least 718 centres across the country.
- These centres will test the vehicle’s emission, and braking and other safety components as prescribed by Central Motor Vehicle Rules, 1989.
- Appointments to these centres will have to be booked online and the fitness report will be electronically generated.
Change in Fee Structure
- The government has increased the fee for renewal and grant of fitness certificate of older vehicles up to 20 times.
- Here is the new fee structure for personal vehicles older than 15 years:
- Two-wheelers – Rs 1,000
- Three-wheeler/quadricycles – Rs 3,500
- Cars – Rs 7,500
(Do not worry about the data. It is the state PSCs which may ask such information)
For commercial vehicles:
- Passenger motor vehicles – Rs 10,000
- Heavy goods/large motor vehicles – Rs 12,500
Benefits for buyers
- In case you decide to scrap your old vehicle at the registered scrapping centres, you will get approximately 4-6 per cent of the value of the vehicle’s ex-showroom price.
- The ex-showroom price is the cost of the vehicle, excluding the charges paid for registering the vehicle at RTO and insurance.
- Moreover, if you buy a new vehicle you will be given a flat 5 per cent discount on presenting a scrapping certificate.
- Registration fees will also be waived on the purchase of a new vehicle.
Obtaining a Scrapping Certificate
- Old vehicle owners will be able to formally scrap their registered vehicles at the automated scrapping centres.
- These centres will be linked with the Vahan database of the transport ministry.
- After you scrap your vehicle with the government registered agency, you will be provided with the scrapping certificate.
- You will then be eligible for the benefits proposed under the scheme.
Implementation
Tentative timeline for the new rules:
- Rules for fitness tests and government scrapping centres to come into effect – 1 October 2021
- The scrapping of government and PSU vehicles above 15 years of age to start – 1 April 2022
- Fitness testing for heavy commercial vehicles – 1 April 2023
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MPC
Mains level: Paper 3- Analysing the performance of inflation targeting policies in India
The article analyses the success of the inflation targeting mechanism in India and its impact on the growth of the economy.
Background of the inflation targeting policy in India
- It has been three decades since inflation targeting was first adopted in New Zealand and subsequently by 33 other countries.
- India adopted it in 2016.
- The primary goal of inflation targeting was to contain inflation at around 4 per cent, within the allowable range of 2 to 6 per cent.
- The RBI has announced a formal review of the policy instrument now.
- At the first meeting of the RBI Monetary Policy Committee in October 2016, it was also formally announced that the MPC considered a real repo rate of 1.25 per cent as the neutral real policy rate for the Indian economy.
- By a neutral real policy rate, the RBI meant a policy rate consistent with growth at potential (i.e. growth at full employment).
Has inflation targeting worked in India
- The evaluation of IT must provide answers to the following two questions:
- Did inflation decline post the adoption of inflation targeting and what was the role of IT in the decline in inflation?
- Was the adoption of inflation targeting associated with the policy of the highest real repo rates in India — ever — for almost three years 2017-2019?
- The answer is yes to the latter, but it also needs to be acknowledged that high real repo rates were the primary cause of the GDP growth decline in India from 8 per cent to 5 per cent.
Need to take into account the global context of inflation
- An interesting feature of the Indian defence of inflation targeting is that very few take into account the global context of inflation in which the decline in inflation has occurred in India.
- A research paper by Balasubramanian, Bhalla, Bhasin and Loungani at ORF evaluates inflation targeting in a global context and separately for Advanced Economies (AEs) and Emerging Economies (EES).
- Some facts from the paper are the following.
- First, the annual median inflation in AEs has been consistently low, so low that many central banks have official campaigns to raise the inflation rate.
- One conclusion might be that IT succeeded beyond anyone’s dreams in these economies.
- But attributing this decline in inflation to IT would be erroneous.
- Inflation is global and price-taking by millions of producers in the world means that no one producer or one country can influence the price of any item.
- Oil has ceased to be a factor in global inflation, at least post the mid-1980s.
- The lowest inflation in Indian history occurred during 1999-2005, averaged only 3.9 per cent.
- The average median rate among EM targetters during 2000-04 was 4 per cent, and among the non-targeting countries was 3.8 per cent.
Did fiscal deficit play role in inflation targeting
- In 2003, India passed the FRBM act to control fiscal deficits and inflation.
- There is precious little evidence, either domestically or internationally, about fiscal deficits affecting inflation.
- For three consecutive years preceding the FRBM announcement, the consolidated Centre plus state deficits registered 10.9 per cent(in 2001), 10.4 and 10.9 per cent.
- For the seven-year 1999-2005 period, consolidated fiscal deficits averaged 9.4 per cent of GDP.
- Yet, that these years represented the golden period of Indian inflation — without FRBM and without IT.
Cost of inflation targeting in India
- There are also costs to inflation targeting in India.
- It led to higher real policy rates, in the mistaken belief that high policy rates affect the price of food, oil, or anything else.
- But high real rates affect economic growth, by affecting the cost of domestic capital in this ultra-competitive world.
- It is very likely not a coincidence that potential GDP growth, as acknowledged by RBI, was reached just before the MPC took over decision making in September 2016.
- Since then there was a steady increase in real policy rates, and a steady decline in GDP growth.
Consider the question “How far has the inflation targeting mechanism been successful in India? Give reasons in support of your argument.”
Conclusion
So, in the inflation targeting mechanism has not been successful in containing the inflation though there had a cost associated with it which we paid in the form of growth.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SAAMAR campaign
Mains level: Various facets of hunger and malnutrition in India
The Jharkhand government has announced the launch of the SAAMAR campaign to tackle malnutrition in the state.
We can expect an MCQ like:
Q.SAAMAR campaign sometimes seen in news is related to:
() Bovine health
() Mother and Child Health
() Non-communicable diseases
() None of these
SAAMAR
- SAAMAR is an acronym for Strategic Action for Alleviation of Malnutrition and Anemia Reduction.
- The campaign aims to identify anaemic women and malnourished children and converge various departments to effectively deal with the problem in a state where malnutrition has been a major problem.
- Every second child in the state is stunted and underweight and every third child is affected by stunting and every 10th child is affected by severe wasting and around 70% of children are anaemic NFHS-4 data.
Features of the scheme
- Although existing schemes are there, seeing the current situation, the intervention was required with a ‘different approach to reduce malnutrition.
- SAAMAR has been launched with a 1000 days target, under which annual surveys will be conducted to track the progress.
- It talks of convergence of various departments such as the Rural Development Department and Food and Civil Supplies and engagement with school management committees, gram sabhas among others and making them aware of nutritional behaviour.
- Most importantly, the campaign, as per the note, also tries to target Primarily Vulnerable Tribal Groups.
Outlined strategy under the scheme
- To tackle severe acute malnutrition children, every Anganwadi Centres will be engaged to identify these children and subsequently will be treated at the Malnutrition Treatment Centres.
- In the same process, the anaemic women will also be listed and will be referred to health centres in serious cases.
- All of these will be done by measuring Mid-Upper Arm Circumference (MUAC) of women and children through MUAC tapes and Edema levels.
- Angawadi’s Sahayia and Sevika will take them to the nearest Health Centre where they will be checked again and then registered on the portal of State Nutrition Mission.
Why need such a scheme?
- The state government runs various schemes under Child Development Schemes, National Nutrition Mission among others to deal with the situation, but it is not enough.
- Dealing with malnutrition in the state monitoring has been an important concern due to the lack of doctors or health care workers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Diatoms
Mains level: Not Much
The Maharashtra Anti-Terrorism Squad has relied on a forensic test known as diatom tests for leads in an alleged murder case of a person inviting high stage political drama.
What are Diatoms?
- Diatoms are photosynthesizing algae that are found in almost every aquatic environment including fresh and marine waters, soils, in fact, almost anywhere moist.
- Diatoms have cell walls made of silica, each species has a distinct pattern of tiny holes in the cell wall (frustule) through which they absorb nutrients and get rid of waste.
- A diatom is a photosynthetic, single-celled organism which means they manufacture their own food in the same way plants do.
Diatoms are important as they:
- provide the basis of the food chain for both marine and freshwater micro-organisms and animal larvae
- are a major source of atmospheric oxygen responsible for 20-30% of all carbon fixation on the planet
- can act as environmental indicators of climate change
- form the basis of some household goods such as pest/mite prevention and mild abrasive
Never underestimate UPSC. Try this PYQ before you reach any conclusion.
Q.Which one of the following is the correct sequence of a food chain?
(a) Diatoms-Crustaceans-Herrings
(b) Crustaceans-Diatoms-Herrings
(c) Diatoms-Herrings-Crustaceans
(d) Crustaceans-Herrings-Diatoms
What is a diatom test?
- Diagnosis of death by drowning is deemed as a difficult task in forensic pathology.
- A number of tests have been developed to confirm the cause of such deaths with the diatom test emerging as one of the most important tests.
- The test entails findings if there are diatoms in the body being tested.
The science behind
- A body recovered from a water body does not necessarily imply that the death was due to drowning.
- If the person is alive when he enters the water, the diatoms will enter the lungs when the person inhales water while drowning.
- These diatoms then get carried to various parts of the body, including the brain, kidneys, lungs and bone marrow by blood circulation.
- If a person is dead when is thrown in the water, then there is no circulation and there is no transport of diatom cells to various organs.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: NA
PM Modi will be on a two-day visit to Bangladesh where he will take part in commemorations of some epochal events there.
Bangabandhu shrine in Tungipara
- Located about 420 kilometres from Dhaka, Tungipara was the place of birth of Rahman, the architect of the 1971 Bangladesh War of Independence.
- This is also the place where he lies buried inside a grand tomb called the ‘Bangabandhu mausoleum’.
- Millions of people gather here every year on August 15, to observe the day when Rahman was assassinated by a group of disgruntled army officers.
Harichand Thakur’s shrine in Orakandi
- Thakur was the founder of the Matua Mahasangha, which was a religious reformation movement that originated in Orakandi in about 1860 CE.
- At a very early age, Thakur experienced spiritual revelation, following which he founded a sect of Vaishnava Hinduism called Matua.
- Members of the sect were the namasudras who were considered to be untouchables.
- The objective of Thakur’s religious reform was to uplift the community through educational and other social initiatives.
- Members of the community consider Thakur as God and an avatar of Vishnu or Krishna.
- After the 1947 Partition, many of the Matuas migrated to West Bengal.
‘Sugandha Shaktipith’ (Satipith) temple in Shikarpur
- Modi is also scheduled to visit the Sugandha Shaktipeeth which is located in Shikarpur, close to Barisal.
- The temple, dedicated to Goddess Sunanda is of immense religious significance to Hinduism.
- It is one of the 51 Shakti Pith temples.
- The Shakti Pith shrines are pilgrimage destinations associated with the Shakti (Goddess worship) sect of Hinduism.
Rabindra Kuthi Bari in Kushtia
- The Kuthi Bari is a country house built by Dwarkanath Tagore, the grandfather of Nobel laureate and Bengali poetic giant Rabindranath Tagore.
- The latter stayed in the house for over a decade in irregular intervals between 1891 and 1901.
- In this house Tagore composed some of his masterpieces like Sonar Tari, Katha o Kahini, Chaitali etc. He also wrote a large number of songs and poems for Gitanjali here.
- It was also in this house that Tagore began translating the Gitanjali to English in 1912, for which he was awarded the Nobel Prize in Literature.
Ancestral home of Bagha Jatin in Kushtia
- Jatindranath Mukherjee, better known as ‘Bagha Jatin’ (tiger Jatin) was a revolutionary freedom fighter.
- He was born in Kayagram, a village in Kushtia district, where his ancestral home is located.
- Jatin acquired the epithet ‘Bagha’ after he fought a Royal Bengal Tiger all by himself and killed it with a dagger.
- Jatin was the first commander-in-chief of the ‘Jugantar Party’ which was formed in 1906 as a central association dedicated to train revolutionary freedom fighters in Bengal.
- This was the period when Bengal was seething with nationalist furore against Lord Curzon’s declaration of Partition of the province.
- Inspired by Jatin’s clarion call, “amra morbo, jagat jagbe” (we shall die to awaken the nation), many young revolutionaries joined the brand of the freedom struggle that the Jugantar Party represented.
His legend:
- Jatin is most remembered for an armed encounter he engaged in with the British police at Balasore in Orissa.
- They were expecting a consignment of arms and funds from Germany to lead an armed struggle when the British found out about the plot and raided the spot where the revolutionaries were hiding. A
- lthough Jatin lost his life in the Battle of Balasore, his activities did have an impact on the British forces.
- The colonial police officer Charles Augustus Tegart wrote about Jatin: “If Bagha Jatin was an Englishman, then the English people would have built his statue next to Nelson’s at Trafalgar Square.”
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Asset Monetisation Pipeline
Mains level: Paper 3- Asset monetisation
The article discusses the government’s proposal to monetise assets and proposes the idea of an independent commission to carry out the task of monetisation.
Roadmap for monetisation of asset: National Monetisation Pipeline
- Finance Minister had introduced a roadmap for monetisation of asset in the Union Budget.
- In the budget, the government proposed to launch a ‘National Monetisation Pipeline’ to assess the potential value of underutilised and unused government assets.
- A number of countries including the United States, Australia, Canada, France and China have effectively utilised this policy.
- In India too, the concept was suggested by a committee led by Vijay Kelkar on the roadmap for fiscal consolidation in 2012.
- The committee had suggested that the government start monetisation as a key instrument to raise resources for development.
- It asked the government to use these resources for financing infrastructure needs.
Why monetisation
- The global pandemic forced the government to increase spending.
- Thus, total expenditure of the government has jumped to ₹34.50 trillion against the target of ₹30.42 trillion.
- On the flip side, revenue of the government is shrinking.
- As a result, total borrowing has increased by 2.3 times, from ₹7.96 trillion to ₹18.49 trillion.
- An increase in borrowing also increases interest cost.
- The ratio of interest payment to revenue receipts was 36.3% in 2019-20.
- As per revised data, it has increased to 44.5% in the current fiscal year and is projected at an all-time high of 45.3% in 2021-22.
- Almost half of the revenue is going towards servicing old debts. To revive the economy, capital expenditure is indispensable.
National Infrastructure Pipeline
- In this backdrop, the government has already launched the National Infrastructure Pipeline (NIP), with 6,835 projects in December 2019.
- The project pipeline has been increased to 7,400.
- The NIP has its own specific target and the government is committed to achieve it in the coming years.
- It called for a major increase in funding.
- For 2021-22, the government has proposed to spend ₹5.54 trillion, which is 34.5% higher than the budgeted amount of 2020-21.
- Now, the government found that monetisation of government- and public sector-owned assets would be an important financing option for new infrastructure construction.
Model for monetisation of asset: REITs
- The government is looking at the Real Estate Investment Trusts (REITs) model for monetisation of assets.
- Under REITs, the land assets are transferred to a trust providing investment opportunity for institutional investors.
- The government has another option to lease or rent out the assets instead of going for monetisation.
- The government expects monetisation will generate ₹2.5 trillion in non-debt capital revenue.
- The objective of asset monetisation is to raise resources for future investment into the sector.
- A pipeline monetisation plan for Indian Oil, GAIL, and Hindustan Petroleum has been drawn up by the government.
- It is expected that the government will raise ₹0.17 trillion by selling stakes in these three companies.
Consider the question “What is asset monetisation? What strategy should be followed by the government in the monetisation of assets?
Conclusion
To handle effectively the task of monetisation of assets, the government should constitute an independent commission clothed with requisite powers and staffed by professionals and researchers to formulate and implement its monetisation initiative.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Digital lending and challenges
Digital lending has been on the rise in India. However, there are several concerns about the model. The article discusses these concerns and suggests the policy approach.
3 digital lending models
- Presently, there are three digital-lending models, seen through the regulatory-approach lens:
- 1) Bank/NBFC-owned digital platforms operating under the direct regulatory purview of RBI.
- 2) Fintech companies’ proprietary digital platforms, working in partnership with banks/NBFCs.
- Being mere intermediaries, these platforms are not required to seek any registration with RBI, and are only indirectly regulated through RBI’s outsourcing guidelines applicable to Banks/NBFCs.
- 3) Peer-to-peer (P2P) lending platforms, which usually involve the otherwise unregulated retail lenders.
- RBI has mandated such platforms to seek registration as NBFC-P2P; thus, they are directly regulated by RBI.
Issues with digital lending
- The specific issues are unauthorised lenders, exorbitant rates of interest, use of coercive repayment methods, and non-consensual collection or use of user data.
- These issues entail serious adverse implications for borrowers and have systemic implications, hampering the rise of legitimate fintech players.
Steps taken
- With a view to curb such practices, RBI, in 2020, issued a notification to Banks/NBFCs mandating additional disclosures/compliances, and an advisory to borrowers warning them against such platforms.
- Following the notification, Google removed several such loan apps from its PlayStore.
- The Digital Lenders’ Association of India (DLAI) also issued guidelines to help borrowers identify such unscrupulous platforms.
- In the regulatory pipeline on this front is the report of the working group on digital lending, constituted by RBI in January 2021.
Framing effective policy solutions
- Given the significant contribution of legitimate fintech players, it is important to ensure that any policy solutions to address such issues do not impede the growth of such players.
- The key to this lies in adoption of light-touch regulation, along with the effective implementation of the already proposed regulatory initiatives.
- For instance, the primary cause of the rising supply of unauthorised lending platforms is the existing credit information asymmetry that genuine lenders face in respect of small borrowers.
- Here, operationalising and on-scale implementation of RBI’s proposed ‘Public Credit Registry’ and the ‘Open Credit Enablement Network’ (an infrastructure protocol enabling digital low cost lending to small borrowers through access of consented data) would lead to increased participation of legitimate players and curb proliferation of unauthorised lenders.
- Another foundation for framing effective policy solutions lies in leveraging the interdependence and impact of each individual constituent of the digital lending ecosystem, on other constituents.
- Apart from lenders/platforms/borrowers, these constituents also include the digital lending industry associations, consent managers and technology developers.
- Regulators and industry associations working together can provide the necessary foundations for addressing these issues.
- Other solutions spear-headed by industry associations could be to establish ‘certification system’ based maintenance of a repository of lending platforms for easy identification of genuine players.
- Similarly, on the data protection aspect, a structural solution through coordinated efforts of various digital lending constituents is required.
Consider the question “Examine the factors aiding the growth of digital lending in India. What are the challenges the sector face? Suggest the measures to deal with these challenges.”
Conclusion
For the continued development of the Indian digital lending economy, it is important to implement policy solutions that adequately protect the borrowers from malpractices, while, at the same time, do not dampen innovation in this fast-evolving sector.
Source:-
https://www.financialexpress.com/opinion/soft-touch-regulation-for-digital-lending/2215702/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Electoral Bonds
Mains level: Ensuring transparent elections
CJI has agreed to urgently hear a plea to stay the sale of a new set of electoral bonds on April 1, before Assembly elections in crucial states such as West Bengal and Tamil Nadu.
Note the denominations of the Electoral Bonds and the issuers.
What is the news?
- Data obtained through RTI has shown that illegal sale windows have been opened in the past to benefit certain political parties.
- There is a serious apprehension that any further sale of electoral bonds before the upcoming State elections would further increase illegal and illicit funding of political parties through shell companies.
What are Electoral Bonds?
- The electoral bonds were introduced on January 29, 2018.
- An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of the State Bank of India.
- The citizen or corporate can then donate the same to any eligible political party of his/her choice.
- The bonds are similar to banknotes that are payable to the bearer on demand and are free of interest.
- An individual or party will be allowed to purchase these bonds digitally or through a cheque.
How to invest?
- The bonds will be issued in multiples of Rs 1,000, Rs 10,000, Rs 100,000 and Rs 1 crore (the range of a bond is between Rs 1,000 to Rs 1 crore).
- These will be available at some branches of SBI.
- A donor with a KYC-compliant account can purchase the bonds and can then donate them to the party or individual of their choice.
- Now, the receiver can encash the bonds through the party’s verified account. The electoral bond will be valid only for fifteen days.
- The 29 specified SBI branches are in cities such as New Delhi, Gandhinagar, Chandigarh, Bengaluru, Bhopal, Mumbai, Jaipur, Lucknow, Chennai, Kolkata and Guwahati.
Issues with them
- The plea has argued that the sale of electoral bonds had become an avenue for shell corporations and entities to park illicit money and even proceeds of bribes with political parties.
- There are documents from the RBI and the Election Commission that say the electoral bonds scheme is detrimental to democracy.
Govt.’s view: Anonymity of the donor matters
- The government has defended the scheme in court, saying it allowed anonymity to political donors to protect them from “political victimisation”.
- The Ministry of Finance’s affidavit in the top court had dismissed the Election Commission’s version that the invisibility afforded to benefactors was a “retrograde step” and would wreck transparency in political funding.
- The government affidavit had said the clause of secrecy was a product of “well-thought-out policy considerations”.
- It said the earlier system of cash donations had raised a “concern among the donors that, with their identity revealed, there would be competitive pressure from different political parties receiving donation”.
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