Bills/Act/Laws DOMR Ethics Explained Historical Sites IOCR op-ed snap PIB Places in news Prelims Only SC Judgements Schemes Species States world map

RBI Notifications

New umbrella entities (NUEs) for retail payments.

| Economics | Mains Paper 3: Government Budgeting

Note4Students

From UPSC perspective, the following things are important :

Mains level: Paper 3-NEU by RBI

Context

Last week the Reserve Bank of India (RBI) released a document setting out the framework it plans to adopt to authorize the establishment of new umbrella entities (NUEs) for retail payments.

What are NUEs

Once established, these newly authorized entities will be able to operate their own clearing and settlement systems.
establish new standards and technologies; and develop innovative new payment systems that enhance customer access, convenience and safety.
All NUEs will have to be interoperable with the National Payments Corporation of India (NPCI).
NPCI would also be allowed to set themselves up as for-profit entities, and they will themselves be able to participate in RBI’s payment and settlement systems.
The NPCI is at the epicentre of the digital payments in the country.

If NPCI is doing its job well, then why NUE?

Between the UPI, IMPS, Aadhaar-enabled payments, Bharat BillPay, and all the other payment systems that it manages, 48% of all electronic retail payments in the country pass through the NPCI infrastructure.
NPCI is the fulcrum around which everything digital revolves.
Perhaps RBI’s concern stems from having the operations of so much of the country’s payment system concentrated in one entity.

Are the concerns of RBI valid?

There is nothing wrong with having all digital transactions flow through a single entity—so long as that entity is neutral.
If RBI’s concern is technical, we could build sufficient redundancy into NPCI’s technical architecture to ensure that there is no single point of failure in the system.
Creating multiple umbrella entities is not the answer to this problem, as NUEs would be allowed to establish themselves as profit-oriented entities.
There is also the question of whether the trade-off is even worth it as replicating the NPCI infrastructure will require heavy investments to make participants in one NUE can seamlessly interact with those in every other.
Ensuring interoperability while still maintaining the security of the underlying infrastructure is going to be difficult and expensive.
There is the cost of the additional regulatory burden that RBI will have to shoulder, now that the banking-sector regulator will have to manage not just one but multiple umbrella entity.

Issues with NPCI

There would be consequences to letting NPCI only entity in handling the payment system.
Any sort of monopoly results in market inefficiencies.
Of we have just one umbrella regulator, we will never be sure if transaction costs are as low as they could be, or if the variety of product offerings available to us could be better.
Problem is that the NPCI is expected to both manage the digital payments industry as well as come up with the frameworks necessary to foster innovation.
When NPCI had just small products in its portfolio it was able to perform both functions efficiently.
The effort of just keeping the system working seems to be taking a toll on NPCI’s ability to develop the protocols and standards that are needed to encourage innovation in this boom sector.

What is the solution to issues faced by NPCI

One possible solution might be to create a separate and independent standards-setting body.
Such body would come up with the protocols and standards required to foster innovation in the digital payments space.
This is how most successful digital infrastructure systems work. Take the World Wide Web, for example.
Any new standard that this body creates will have to first be approved by the NPCI, but then it can be rolled out throughout the digital payments ecosystem.

Consider the question “Examine the role played by the NPCI in revolutionising the payment system in India.”

Conclusion

By establishing a neutral and independent standards-setting body, we can make sure that the system as a whole in our country evolves in the best traditions of digital infrastructure adopted anywhere in the world.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

RBI Notifications

The idea of Central Bank Digital Currency in India

op-ed snap | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NUE by the RBI

Mains level: Paper 3- Digital currency by the central bank and its advantages

The article discusses the idea of digital currency supported by the RBI and its advantages.

Purpose of NUE

RBI recently released the framework for the establishment of a new umbrella entity (NUE) for retail payments.
NUE would help reduce payments concentration risk with Unified Payments Interface (UPI) facilitating over 1.5 bn transactions a month.
Given the sticky adoption and only a few payments apps dominating the UPI market, RBI intends to create a parallel retail system.

5 requirements payment systems should fulfil

1) The payments system should reduce the cost and time for government support to reach unbanked and underbanked people.
2) It should ensure ease of access to credit for small and medium businesses.
3) Improve the effectiveness of the implementation of monetary policy.
4) The new payment system should effectively counter risk from unregulated new digital currencies like Bitcoin.
5) It should discourage money laundering and tax evasion.

CBDC: Solution to the above 5 requirements

CBDC is the digital form of fiat money, a digital equivalent of banknotes and coins.
A Central Bank Digital Currency (CBDC) could potentially solve the above problems.
Retail CBDCs can be issued directly by the central bank to people without going through traditional banks.
Individuals would have CBDC accounts directly on the central bank core ledger.
CBDC can reduce the cost and time for government support to reach people during desperate times (like pandemic).
CBDC can also enable many financial entities to settle directly with RBI.
In the current set up only a few large banks can settle directly with RBI.
With a digital currency, the settlement can be instantaneous and, as a result, more payments services providers like NBFCs could connect with RBI, thereby, reducing credit and liquidity risk.
CBDC lending would build MSMEs history and make further lending easier.
For India to be a $5 tn economy, businesses need credit, and that can happen when we have more banks.
India had 97 banks in 1947; today we are still at 95!
Interest bearing CBDCs can also improve monetary policy effectiveness by enabling real-time pass-through of the policy rate to the lending markets.
CBDCs can also allow for direct deposits into accounts of low-income households, senior citizens dependent on pensions and help cushion their purchasing power from the low-level interest rates during the times of economic downturn.
CBDC can thwart some competition against privately issued foreign currency-denominated digital currencies.

Roles and responsibility of RBI with respect to CBDC

In terms of managing roles and responsibilities, RBI would only hold the accounts and implement monetary policies as it does now.
Fintech companies can become the channel for retail CBDC transmission and manage client relationships.
Fintechs can complement the commercial banks and can draw small businesses/poor households into the formal economy.
These companies could leverage their data to estimate customers’ creditworthiness and share their findings to banks for more efficient allocation of credit.

Consider the question “A digital currency backed by the central bank could transform the retail payment landscape in India. Discuss.”

Conclusion

India has been at the forefront of the fintech revolution, and other developed countries have been following its path. While the world watches the melee between the Greenback and the Renminbi, it is time India also lays the foundation for a strong currency. CBDC may just be one of the ways to do it.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Boosting manufacturing

op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth,Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Manufacturing sector in India

The article analyses the issues of increasing manufacturing in India while dealing with the constraints faced by it. It also suggests the important role States can play.

Why companies are expected to exit China

In the aftermath of the pandemic manufacturing companies are expected to exit China due to three primary reasons.
1) Realisation that relying heavily on China for building capacities and sourcing manufacturing goods is not an ideal business strategy due to supply chain disruptions in the country caused by COVID-19.
2) Fear of Chinese dominance over the supply of essential industrial goods.
3) The growing risk and uncertainty involved in operating from or dealing with China in the light of geopolitical and trade conflicts between China and other countries, particularly the U.S.

Where India stands in comparison with China

China ranks first in contribution to world manufacturing output, while India ranks sixth.
Against India’s target of share of manufacturing in Gross Domestic Product (GDP) to 25% by 2022, its share stood at 15% in 2018, only half of China’s figure.
Industry value added grew at an average annual rate of 10.68% since China opened up its economy in 1978, India’s grew at 7% after India opened up its economy.
Next to the European Union, China was the largest exporter of manufactured goods in 2018, with an 18% world share.
India is not part of the top 10 exporters who accounted for 83% of world manufacturing exports in 2018.

Constraints faced by manufacturing sector in India

India faces numerous constraints in promoting the manufacturing sector.

They chiefly include infrastructure constraints, a disadvantageous tax policy environment, restrictive trade policies, a non-conducive regulatory environment, rigid labour laws.
Constraints also include high cost of industrial credit, poor quality of the workforce, Low R&D expenditure, delays and constraints in land acquisition, and the inability to attract large-scale foreign direct investment into the manufacturing sector.

What role States can play?

They can contribute land: Federal government system in India demands the participation of States for the lasting solution to the constraints on the sector.
An important requirement for the development of the manufacturing sector is the availability of land area.
This could be one of the reasons why manufacturing activity is mainly concentrated in Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh.
However, what is of concern is that some States that also have large land area contribute disproportionately little in manufacturing GSDP.
These states include Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Telangana, and West Bengal.

Way forward

Identify reasons: The reasons for less manufacturing activity in these States have to be carefully examined.
State-specific industrialisation strategies: Based on such reasons, State-specific industrialisation strategies need to be devised and implemented in a mission mode with active hand-holding by the Central government.
State specific reforms: Policy actions on the part of individual States would improve India’s overall investment climate, thereby boosting investments, jobs, and economic growth.
Policy actions of the Centre and the States should be well coordinated: Strategy Group consisting of representatives from the Central and State governments along with top industry executives to instil teamwork and leverage ideas through sharing the best practices of the Centre and States could be formed.

Consider the question “What are the constraints faced by the manufacturing sector in India? Suggest the ways to deal with these constraints highlighting the important role States can play in boosting manufacturing.”

Conclusion

Both the States and the Central government needs to work in tandem to boost the manufacturing in India and transform the economic landscape of India.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Finance Commission – Issues related to devolution of resources

India needs a Fiscal Council

| Polity | Mains Paper 2: Federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Idea of fiscal council

Mains level: Paper 2- Fiscal Council

The newscard highlights the need of bipartisan, independent Fiscal Council to report and analyse FRBM discrepancies by the Government.

Try this question for mains:
Q.Fiscal Council is an important institution needed to complement the rule-based fiscal policy. Discuss.

What is a Fiscal Council?

A Fiscal Council is an independent fiscal institution (IFI) with a mandate to promote stable and sustainable public finances.
They aim to provide nonpartisan oversight of fiscal performance and/or advice and guidance — from either a positive or normative perspective — on key aspects of fiscal policy.
These institutions assist in calibrating sustainable fiscal policy by making an objective and scientific analysis.

Voices for a Fiscal Council

The 13th Finance Commission recommended that a committee be appointed by the Ministry of Finance which should eventually transform itself into a Fiscal Council.
The FC expected it to conduct an annual independent public review of FRBM compliance, including a review of the fiscal impact of policy decisions.
The FRBM Review Committee too made a similar recommendation underlining the need for an independent review by the Finance Ministry appointing the Council.

Why need a fiscal council?

(1)Burgeoning deficits

For the current year, even without any additional fiscal stimulus, the deficit is estimated at about 7% of GDP as against 3.5% estimated in the Budget due to a sharp decline in revenues.
The consolidated deficit of the Union and States could be as high as 12% of GDP and the overall debt could go up to 85%.
Thus it is necessary that the government must return to a credible fiscal consolidation path once the crisis gets over.

(2)Transparency issues

Besides large deficits and debt, there are questions of comprehensiveness, transparency and accountability in the Budgets.
The practice of repeated postponement of targets, timely non-settlement of bill payments and off Budget financing to show lower deficits has been common.
The report of the CAG of India in 2018 has highlighted various advances done to keep the liabilities hidden.

Fiscal Council can be a game changer. How?

First, an unbiased report to Parliament helps to raise the level of debate and brings in greater transparency and accountability.
Secondly, costing of various policies and programmes can help to promote transparency over the political cycle to discourage populist shifts in fiscal policy and improve accountability.
Third, scientific estimates of the cost of programmes and assessment of forecasts could help in raising public awareness about their fiscal implications and make people understand the nature of budgetary constraint.
Finally, the Council will work as a conscience keeper in monitoring rule-based policies, and in raising awareness and the level of debate within and outside Parliament.

Issues meddling between

The problem is that a Council created by the Finance Ministry and reporting to it can hardly be expected to be independent.

Diverse role to play ahead

According to the IMF, there were 36 countries with IFIs in 2014 and more have been established since.
While most of the IFIs are in advanced countries, emerging economies too have also shown growing interest in them.
Although their common agenda has been to function as watchdogs, there is considerable diversity in their structure and functions.
Over the years, monitoring compliance with fiscal rules and costing policies and programmes have become major tasks of these councils.

Way forward

When the markets fail, governments have to intervene.
Whenever governments seem obstructed, it is here that we need systems and institutions to ensure checks and balances.
In that respect, a Fiscal Council is an important institution needed to complement the rule-based fiscal policy.

Conclusion

Of course, it is not a ‘silver bullet’; if there is no political will, the institution would be less effective, and if there is political will, there is no need for such an institution.
That is also true of the FRBM Act. While we cannot state that the FRBM Act has been an unqualified success, it has also not been an abject failure either.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Modern Indian History-Events and Personalities

[pib] Cultural heritage of Hyderabad

PIB | History and Art & Culture | Mains Paper 1: Arts & Culture

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various cultural sites in Hyderabad

Mains level: Cultural site in Hyderabad

Ministry of Tourism’s DekhoApnaDesh Webinar Series in its 50th session held a webinar on “Cultural heritage of Hyderabad”.

Note various cultural sites mentioned in the newscard. The entire DekhoApnaDesh series is a potential hotspot for the coming Prelims.

The story of Hyderabad City

Hyderabad is popularly known as the “City of Pearls” and the “City of Nizams”, and has been the centre of a vibrant historical legacy, ever since its inception by the Qutub Shahi dynasty.
The city was later conquered by Mughal Empire and finally falling in the hands of Asaf Jahi dynasty.
Muhammad Quli Qutb Shah established Hyderabad in 1591 to extend the capital beyond the fortified Golconda. In 1687, the city was annexed by the Mughals.
In 1724, Mughal governor Nizam Asaf Jah I declared his sovereignty and founded the Asaf Jahi dynasty, also known as the Nizams.
Hyderabad served as the imperial capital of the Asaf Jahis from 1769 to 1948.
As capital of the princely state of Hyderabad, the city housed the British Residency and cantonment until Indian independence in 1947.

Cultural sites of Hyderabad:

1) Golconda Fort, Hyderabad: A massive fortress whose ruins stand proudly even today displaying the glory of its rich past and some untold sagas of the city’s history. The place oozing charm is a must visit historical place in Hyderabad. Mohammed Quli understood the need of a new City and made Bhagnagar (after the name of his beloved Bhagmati) with Charminar in its centre.

2) Chowmahalla Palace: Once the seat of the Asaf Jahi Dynasty, the Chowmahalla Palace was built in Hyderabad and is located near the famous monument, Charminar and Laad Bazar. The palace is designed very intricately and holds that Nawabi Charm in itself. Palace, the seat of power of Nizams, has bagged the UNESCO Asia-Pacific Heritage Merit Award for Culture Heritage Conservation.

3) Charminar: The monument was erected when Quli Qutab Shah shifted his capital from Golconda to Hyderabad. The monument got its name from its structure as it consists of four minarets.

4) Mecca Masjid: One of the oldest and the largest mosques of India is the grandest historical places in Hyderabad was completed by Aurangzeb in 1693.The bricks used here are believed to be from Mecca, and hence the name.

5) Paigah tombs: Located in the suburbs of Pisal Banda in Hyderabad, Paigah Tombs are a group of tombs of the Paigah royal family. Although now in a derelict and dilapidated state, the tombs still boast of striking architecture and marvellously carved marble panels.

6) Salar Jung Museum: Is an art museum established in the year 1951 and located at Dar-ul-Shifa, on the southern bank of the Musi River in the city of Hyderabad. The Salar Jung family is responsible for its collection of rare art objects from all over the world. The family is one of the most illustrious families in Deccan history, five of them having been prime-ministers in the erstwhile Nizam rule of Hyderabad-Deccan.

7) Warangal Fort: This fort appears to have existed since at least the 12th century when it was the capital of the Kakatiya dynasty. The fort has four ornamental gates, known as Kakatiya Kala Thoranam, that originally formed the entrances to a now ruined great Shiva temple.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Indian Navy Updates

Dismantling INS Viraat

Prelims Only | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

Note4Students

From UPSC perspective, the following things are important :

Prelims level: INS Viraat

Mains level: Not much

Decommissioned aircraft carrier INS Viraat is set to be scrapped at a ship breaking yard at Alang in Gujarat soon.

In rarest case we would see a question based on this in CSP. However, we can expect a question based on INS Viraat in the CAPF exam very well.

INS Viraat

Viraat, a Centaur class aircraft carrier weighing 27,800 tonnes, served in the British Navy as HMS Hermes for 25 years from November 1959 to April 1984.
It was commissioned into the Indian Navy in May 1987 after refurbishment and had operated Harrier fighter jets.
It was decommissioned from in March 2017, and the Navy had been incurring expenditure since then on its upkeep, such as the provision of electricity and water, and repairs.
In 2018, the Maharashtra Cabinet approved a proposal to convert the carrier into a museum and hospitality centre on a PPP basis and had invited bids. But there were no takers.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Organic Farming – Paramparagat Krishi Vikas Yojna (PKVY), NPOF etc.

What is Biochar?

| Enviro & Biodiversity | Mains Paper 3: Major Crops & Cropping Patterns

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Biochar and its application

Mains level: Use as organic farming option

A new research has shown that Biochar application is more effective in promoting pulses growth and yield in Ghana.

Try this PYQ:

Q.In the context of which one of the following are the terms ‘pyrolysis and plasma gasification’ mentioned? (CSP 2019)

(a) Extraction of rare earth elements

(b) Natural gas extraction technologies

(c) Hydrogen fuel-based automobiles

(d) Waste-to-energy technologies

What is Biochar?

Biochar is a high-carbon, fine-grained residue that is currently produced through modern pyrolysis processes (direct thermal decomposition of biomass in the absence of oxygen and preventing combustion).
It produces a mixture of solids (the biochar proper), liquid (bio-oil), and gas (syngas) products.
Biochar may increase soil fertility of acidic soils (low pH soils), increase agricultural productivity, and provide protection against some foliar and soil-borne diseases.

Its benefits

Carbon Sink: The burning and natural decomposition of biomass releases large amounts of carbon dioxide and methane to the Earth’s atmosphere. The biochar production process also releases CO2 (up to 50% of the biomass); however the remaining carbon content is stable indefinitely.
Soil Amendment: Biochar is recognized as offering a number of soil health benefits. The extremely porous nature of biochar is found to be effective at retaining both water and water-soluble nutrients. Its presence in the earth can improve water quality, increase soil fertility, raise agricultural productivity, and reduce pressure on old-growth forests.
Water retention: Biochar is hygroscopic. Thus it is a desirable soil material in many locations due to its ability to attract and retain water.

————————-//———————-

Back2Basics

What is Pyrolysis?

Pyrolysis is the thermal decomposition of materials at elevated temperatures in an inert atmosphere.
It involves a change in chemical composition. The word is coined from the Greek-derived elements pyro “fire” and lysis “separating”.
It is most commonly used in the treatment of organic materials. It is one of the processes involved in charring wood.
It is considered as the first step in the processes of gasification or combustion.

How does it work?

In general, pyrolysis of organic substances produces volatile products and leaves a solid residue enriched in carbon, char.
Extreme pyrolysis, which leaves mostly carbon as the residue, is called carbonization.
The process is used heavily in the chemical industry, for example, to produce ethylene, many forms of carbon, and other chemicals from petroleum, coal, and even wood, to produce coke from coal.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

ISRO Missions and Discoveries

ASTROSAT Satellite

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ASTROSAT; Space missions of ISRO and NASA

Mains level: NA

ASTROSAT, India’s first multi-wavelength satellite observatory, has detected an extreme ultraviolet (UV) light from a galaxy which is 9.3 billion light-years away from Earth.

Try out:

Consider the following statements regarding the AstroSat:

1)AstroSat is India’s multi-wavelength space telescope.
2)ASTROSAT mission is that enables the simultaneous multi-wavelength observations of various astronomical objects with a single satellite.
3)ASTROSAT observes the universe in the optical and high energy X-ray regions of the electromagnetic spectrum.

Which of the following above statements is true?

a.1 and 2
b.2 and 3
c.1 and 3
d.1, 2 and 3

AUDFs01

AstroSat has detected extreme-UV light from a galaxy, called AUDFs01, 9.3 billion light-years away from Earth.
The galaxy is located in the Hubble Extreme Deep field, through AstroSat.
This is a very important clue to how the dark ages of the universe ended and there was light in the universe.

About ASTROSAT

AstroSat is India’s first dedicated multi-wavelength space telescope. It was launched on a PSLV-XL on 28 September 2015.

It is the first dedicated Indian astronomy mission aimed at studying celestial sources in X-ray, optical and UV spectral bands simultaneously.

————–//—————-

Find some time to scroll through recent ISRO missions and discoveries.

ISRO Missions and Discoveries

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Reversing health sector neglect with a reform agenda

| Governance | Mains Paper 2: Health & Education

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2-Universal health coverage in India

The article analyses the issues India could face in implementing the universal health coverage.

Context

Both India and the U.S. leads the Covid cases in the world and also lack effective universal health coverage (UHC).

What explains the lack of UHC in both the countries

The lack of UHC is due to multiple long-standing factors and historical reasons that have put a damper on the UHC agenda.
This long legacy has two important and inter-related implications when it comes to health-care reform.
1) Certain foundational aspects of these health systems that have been adopted over decades tend to dictate the terms of further evolution and lead to a number of compromises.
2) The long legacy itself comprises a path-dependent trajectory that precludes far-reaching health-care reform.
This applies both to AB-PM-JAY and NDHM.

India’s attempt at UHC: Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana

The government has looked poised to employ Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PM-JAY) health insurance as the tool for achieving UHC.
Taking the health insurance route to UHC driven by private players, rather than strengthening the public provisioning of health care, is reflective of the non-negotiability of private health care in India.
Covering the remaining population under the AB-PM-JAY presents massive fiscal and design challenges.
Turning it into a contributory scheme based on premium collections would be a costly and daunting undertaking, given the huge informal sector and possible adverse selection problems.
Distributing benefits among various beneficiary groups, and a formalisation and consolidation of practices in a likely situation of covering outpatient care, are formidable additional challenges.
One possible advantage for India over the U.S. could be a relative ease of integrating fragmented schemes into a unified system. The AB-PM-JAY has this ability.

Issues with AB-PM-JAY

1) Universal insurance will not be universal access

In India, almost two-third corporate hospital are located in cities.
So, such maldistribution of health-care facilities and low budgetary appropriations for insurance could mean that universal insurance does not translate to universal access to services.
So far, insurance-based incentives to drive private players into the rural countryside have been largely unsuccessful.

2) Lack of regulatory robustness

AB-PM-JAY is without enough regulatory robustness to handle everything from malpractices to monopolistic tendencies.
This could have major cost, equity, and quality implications.

National Digital Health Mission (NDHM)

Integration and improved management of patient and health facility information are sought through NDHM.
But in the absence of robust ground-level documentation practices and its prerequisites, it would do little more than helping some private players and adding to administrative complexity and costs.

Consider the question “What are the challenges India faces in the implementation of universal health coverage? Suggest the measures to achieve it.”

Conclusion

Upheavals offer a window for reforms. We cannot afford to be complacent and think that the pandemic will automatically change the Indian health-care landscape. It will require mobilising concerted action from all quarters.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-China

Seeking equilibrium with China

op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-China relations

The article analyses the India’s efforts to establish strategic equilibrium with assertive China and how that idea clashes with China’s desire to form an Asian order with itself at the top.

Strategic equilibrium

External Affairs Minister S Jaishankar articulated that India is seeking strategic equilibrium with an increasingly aggressive China.
It is hoped that with China’s growing differences with the U.S. China would pay attention to India’s sensitivities.
In achieving equilibrium with China, India has bravely been confronting a face-off in the Himalayas for the past several months.
India has been building issue-based alliances with the US and Asian majors like Japan, Korea, Vietnam and Indonesia, and Australia.
It has taken initiatives in the direction of economic de-coupling with China in the name of “atmanirbharata”.

Hierarchical Asian order with China at top

China is not interested in equilibrium with any of its Asian neighbours, least of all with India.
China’s efforts are clearly to build a hierarchical Asian order, with itself at the top.
It is acutely conscious of India’s economic strength, military modernisation and overall capabilities.
It knows that India is also far behind on these counts.
China is ruthlessly resisting India’s access to global governance bodies, such as the UNSC and NSG.
To keep India tied at that level, China is objecting to India’s growing strategic proximity to the US. I
It is encircling India strategically and economically through its strategic and economic corridors — BCIM (Bangladesh, China, India and Myanmar), CPEC and the Trans-Himalayan Connectivity Network.
It is raising issues like Kashmir at the UN and establishing footprints in the Indian Ocean.

What should India do

1. Adjust with China, at least tactically.

Such an adjustment could be based on mutual give and take.
For India, our first priority could be the resolution of the border dispute.
Secondly, since China has offered to mediate between India and Pakistan, it should be asked to prevail over Pakistan to resolve the Kashmir issue.
In return for these “takes” India could offer access to Chinese commercial cargos to sea, through the Nathula pass.
India could also join China’s BRI on mutually acceptable terms.
India may also show its willingness, at least tactically, to join CPEC as both Pakistan and China have asked for, provided, India is allowed to undertake projects in PoK and Balochistan.

2.India should revisit its Tibet policy, which is a core irritant for China.

Consider the question “China seeking to establish an Asian order with itself at the top comes in the way of India establishing strategic equilibrium with China. Comment.”

Conclusion

It is possible that this “give” and “take” may not be acceptable to China. Even if it does not work out as planned, India would have made a bold diplomatic initiative and a huge tactical move towards thinking through out-of-the-box solutions and displaying that it can undertake risks to pursue its long-term national interests.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-United States

India’s strategic autonomy and its evolution

op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Evolution of the idea of strategic autonomy

The article analyses the evolution of India’s approach to strategic autonomy from the unipolar world dominated by the U.S. to now when the Chinese threat has been looming large.

Context

Addressing a Southeast Asian forum last week, external affairs minister outlined India’s new quest for “strategic autonomy” in its global economic engagement.

Connection with Atmanirbhar Bharat

This new quest for “strategic autonomy” is the natural external complement to new economic strategy, described as “Atmanirbharata” or “self-reliance”.
The concept carries so much ideological baggage, its revival by Government inevitably raised many questions
Senior ministers and officials of the NDA government sought to reassure India’s partners that Delhi was not marching backwards.
When applied to the foreign policy framework, “self-reliance” becomes “strategic autonomy”.

Evolution of the idea of strategic autonomy

America towered over the world after the collapse of the Soviet Union in 1991.
India’s past emphasis on strategic autonomy was in the context of the “unipolar moment” [dominated by the U.S.] that emerged after the Cold War.
On the one hand, India needed Western capital as well as technology and better access to its markets.
On the other hand, Delhi had to protect some of its core national interests from the threats of US intervention.

India-U.S. Relations: Evolution after the Cold war

In the early 1990s, the Clinton Administration strong desire to resolve the Kashmir dispute between India and Pakistan.
The Clinton Administration saw the nuclear and Kashmir disputes as one and the same thing.
Indian diplomacy for the next two decades tried to change the US policy on both Kashmir and nuclear issues.
Under President George W Bush, the US discarded the long-standing temptation to insert itself in the Kashmir dispute.
The US also went out of the way to resolve the nuclear dispute with India by changing its domestic laws and international norms on nuclear proliferation.
The Obama and Trump Administrations have stayed the course since then.

China challenge for India

On the atomic front, as the US sought to lift the prolonged atomic blockade against India, China sought to block the process.
China turned an obstacle to India’s membership of the Nuclear Suppliers Group.
China takes up the Kashmir issue regularly in the United Nations Security Council.
Today, India’s strategic autonomy is about coping with China’s challenge to India’s territorial integrity and sovereignty.
China today is viewed in Delhi as a major threat to India’s economic development.
The bilateral trade deficit reached nearly $55billion in 2019.
India pulled out of an Asia-wide free-trade arrangement called the Regional Comprehensive Economic Partnership late last year, sensing the threat posed by China-led economic order.
Ladakh aggression forced India to go from a passive commercial withdrawal to an active economic decoupling from China.

Way forward

The logic of strategic autonomy from China nudges India to look for strong security partnerships with the US, Europe, Japan and Australia.
On the economic front, India is exploring various forms of collaboration with a broad group of nations that have a shared interest in developing trustworthy global supply chains.

Consider the question “Delineate the evolution of India’s approach towards the idea of strategic autonomy. How it differs from the past?”

Conclusion

Threats to either territorial integrity or economic prosperity are powerful enough on their own to compel drastic changes in any nation’s policies. Coming together, they promise to make strategic autonomy from an assertive China an enduring theme of India’s economic and foreign policies in the years ahead.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

| Economics | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MEIS, RODTEP Scheme

Mains level: Export promotion measures

The outlay for the RoDTEP scheme is expected to be “much higher” than the NITI Aayog’s much-curtailed estimate of Rs 10,000 crore a year.

Overt allocation

The central government had envisaged an annual allocation of about Rs 50,000 crore under the RoDTEP scheme to make exports zero-rated.

Try this PYQ:

Q. Among the following, which one is the largest exporter of rice in the world in the last five years? (CSP 2019)

(a) China

(b) India

(c) Myanmar

(d) Vietnam

RoDTEP Scheme

RoDTEP is a scheme for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
The new RoDTEP Scheme is fully WTO compliant scheme.
It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

Back2Basics: Merchandise Exports from India Scheme (MEIS)

MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
MEIS intends to incentivise exports of goods manufactured in India or produced in India.
The incentives are for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
The MEIS covers almost 5000 goods notified for the purpose of the scheme.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Tribes in News

Tribes in news: Bondas

| Governance | Mains Paper 2: Health & Education

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PVTGs

Mains level: Not Much

The COVID-19 pandemic has reached the Bondas, a PVTGs community residing in the hill ranges of Malkangiri district in Odisha.

Try this PYQ:

Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:

PVTGs reside in 18 States and one Union Territory.

A stagnant or declining population is one of the criteria for determining PVTG status.

There are 95 PVTGs officially notified in the country so far.

Irular and Konda Reddi tribes are included in the list of PVTGs.

Which of the statements given above are correct?(CSP 2019)

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1, 3 and 4

Who are the Bondas?

The Bondas are Munda ethnic group who live in the isolated hill regions of the Malkangiri district of southwestern Odisha near the junction of the three states of Odisha, Chhattisgarh, and Andhra Pradesh.
They are a scheduled tribe of India and are also known as the Remo (meaning “people” in the Bonda language).
The tribe is one of the oldest and most primitive in mainland India; their culture has changed little for more than a thousand years.
Their isolation and known aggressiveness continue to preserve their culture despite the pressures of an expanding Indian population.

Back2Basics: Particularly Vulnerable Tribal Groups (PVTGs)

There are certain tribal communities who have declining or stagnant population, low level of literacy, pre-agricultural level of technology and are economically backward.
They generally inhabit remote localities having poor infrastructure and administrative support.
These groups are among the most vulnerable section of our society as they are few in numbers, have not attained any significant level of social and economic development.
75 such groups have been identified and categorized as Particularly Vulnerable Tribal Groups (PVTGs).

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

[pib] National Food Security Act, 2013

PIB | | Mains Paper 2: Poverty & Hunger

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NFS Act

Mains level: Assurance of Food Security

The Department of Food &Public Distribution has issued directions to States/UTs to include all eligible disabled persons under the National Food Security (NFS) Act 2013.

Try this question:

Q.In the ongoing crisis, maintaining the level of food security has become one of the most essential needs. In light of the above statement, critically examine the priority areas for maintaining food security in the country. Suggest measures to make accessibility and availability of food easier for all.

National Food Security (NFS) Act

The NFS Act, 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
It was signed into law on 12 September 2013, retroactive to 5 July 2013.
It converts into legal entitlements for existing food security programmes of the GoI.
It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS).
Further, the NFSA 2013 recognizes maternity entitlements.
The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).
Under the provisions of the bill, beneficiaries of the PDS are entitled to 5 kilograms per person per month of cereals at the following prices:

Rice at ₹3 per kg
Wheat at ₹2 per kg
Coarse grains (millet) at ₹1 per kg.

Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.

Implementation

Section 38 of the Act mandates that the Central Government may from time to time give directions to the State Governments for effective implementation of the provisions of the Act.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

River Ropeway over Brahmaputra

Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Brahmaputra Ropeway

Mains level: Not Much

India’s ‘longest’ river ropeway across the Brahmaputra River was unveiled in Guwahati.

Navigate to this page for more readings on Brahmaputra River systems:

Brahmaputra River System

Brahmaputra Ropeway

The 1.82 km bi-cable jig-back ropeway connects the southern bank of the Brahmaputra and a hillock behind the Doul Govinda temple in North Guwahati on the other.
It passes over the mid-river Peacock Island that houses Umananda, a medieval Shiva temple.
It thus cuts travel time between the two banks to 8 minutes.
The current travel options between the two banks are by ferry (30 minutes or more, depending on current and season) or by road through a bridge that usually takes over an hour in the traffic.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-Nepal

Thinking through the Nepal policy

| International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Treaty of Sagauli

Mains level: Paper 2- India-Nepal relations

Unilateral actions by Nepal

Minor dispute involving territory around the Kalapani springs, was expanded to claim a large wedge of Indian territory towards the east, measuring nearly 400 square kilometres.
The expanded claim was incorporated into Nepal through a constitutional amendment and a revised official map.

Future course of action

India should be willing to engage in talks with Nepal on all aspects of India-Nepal relations.
But any talks on the Kalapani issue should be limited to the area which was the original subject for negotiations and Susta.
Borders which have been accepted by both sides for more than 100 years and which have also been reflected on their official maps cannot be unilaterally altered by one side coming up with archival material which has surfaced in the meantime.
This would make national boundaries unstable and shifting, and create avoidable controversies between countries as is the case now between India and Nepal.

Some historical background

The Treaty of Sugauli of 1816 sets the Kali river as the boundary between the two countries.
There was no map attached to the treaty.
Nepal is now claiming that the main tributary of the Kalapani river rises east of the Lipu Lekh pass from the Limpiyadhura ridgeline and hence should serve as the border.
Even if the lengthiest tributary may be one principle for a riverine boundary, it is not the only one.
There are many boundaries which do not follow any geographical principle at all but are the result of historical circumstances, mutual agreement and legal recognition.
British surveys of the region consistently showed the India-Nepal border heading due north of Kalapani springs.
This alignment never changed in subsequent years and was also reflected in Nepali official maps.
It has been argued by Nepal that it was the East India Company and successor governments “cartographic chicanery” to shift the source of the Kali river towards the east.
But Nepali government never contested such actions.
In 1969, the then Prime Minister of Nepal demanded that India military personnel manning 17 villages along the Nepal-Tibet border since the early 1950s be withdrawn.
If Lipu Lekh and Kalapani were on Nepali territory then why were they omitted from the list?
The Chinese, at least since 1954, have accepted Lipu Lekh Pass as being in Indian territory.
In the Nepal-China boundary agreement of 1960, the starting point of the boundary is clearly designated at a point just west of the Tinker Pass.

Consider the question “Nepal’s newfound aspiration has led to the introduction of friction in India-Nepal ties, what is needed is recognition of each others’ concerns. Comment.”

Conclusion

For India, more than the exemplary inter-state relationship, it is the unique people-to-people relations between India and Nepal; and, fortunately, inter-state relations have been unable to undermine the dense affinities that bind our peoples together. While India should reject the Nepali state’s ill-conceived territorial claims, it should do everything to nurture the invaluable asset it has in the goodwill of the people of Nepal.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

The missing large in MSMEs

op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MSMEs

Mains level: Paper 3- MSMEs issues and opportunities

MSMEs in India has huge untapped potential. This article suggest the ways to tap it and make the MSMEs major contributor to India’s growth.

What is an issue with MSMEs

Despite MSME contributing 20% of the GDP and employing about 110 million workers, we have failed to make bold policy-moves to make it more productive and competitive.
MSMEs are not becoming ‘larger’ and more dynamic, with 99% of the estimated 60 million being micro-enterprises with limited aspirations.
At the core of this lack of competitiveness is a structural issue.

Addressing the structural challenges

Size

Consider India’s largest textile cluster vs Bangladesh’s largest.
More than 70% of the units in Tirupur are micro-enterprises with less than 10 employees while only 20% of the units in Narayanganj in Bangladesh have less than 10 employees.
This factor makes the cluster in Bangladesh more competitive and helping Bangladesh’s exports grow faster than India’s.
Though Bangladesh has other advantages also, but this structural difference is critical.

Relation between size and productivity

Productivity data from manufacturing MSMEs in OECD show that the productivity of medium firms (50-250 people) could be as much as 80-100% higher than that of micro firms (<9 employees).
Growth in scale allows them to invest in people to improve skills, in better technology & processes, and in innovation.
The most-competitive of them grow from their small beginnings to become world-beaters.
This push to grow and improve capabilities and productivity is central to dynamism of any country’s industrial structure.
This dynamism of micro-enterprises has been one of the less-reported policy levers behind China’s rise as an industrial powerhouse.

What stops MSMEs in India from growing?

Our policy-legacy of highly restrictive asset-based definition which has only recently been relaxed, coupled with a mindset, and, policies, to support the ‘small is beautiful’ narrative.
Overly complex regulatory regime doesn’t differentiate enterprises on their scale, other than the really tiny ones, in terms of compliance needs.
For example, if a unit has more than six employees, the trade union law becomes applicable, If a unit has more than 10 employees, the Factories Act is applicable.
Small enterprises thus face the same multitude of regulatory requirements as larger ones, and end up having compliance costs account for a higher percentage of revenue.
For the tiny/micro units, there is simply no incentive to grow and enter the formal economy.

Policy intervention needed

1) Getting MSMEs into formal credit system

To do this, we need to adopt an approaches that can help banks and NBFCs move away from asset-backed lending, towards some form of cash-flow-based lending.
Small retailers are outside the formal credit system, unable to invest, modernise and grow, given they lack fixed ‘assets’.
But, all of them are linked to, and sell, brands of well-known, large companies.
If banks and NBFCs work with these companies and use anonymised data on sales and credit-performance to develop credit-scores for lending to them?
Similar innovative ways could help cover other micro-unit segments.

2) Simplified tax and regulatory regime

The second policy intervention needed is to de-average and implement a simplified tax and regulatory regime for MSMEs.
This would also reduce the cost of compliance.

3) Development of digital platform

The third intervention, appropriate for digital era, is to develop a comprehensive ‘digital platform’ for the sector.
This will call for a mandatory, unique identifier for all.
The platform will have to be linked to different relevant databases.

Consider the question “MSMEs in India continues to play an important role in India’s development yet it suffers from structural challenges which hinders it from fueling India’s growth. In light of this, examine the challenges MSMEs faces and suggest the policy interventions.”

Conclusion

As India launches the Atmanirbhar Bharat Abhiyan to reignite growth of the economy for a post-COVID world, building such a globally-competitive MSME has to become one of the initiative’s core pillars. Only then can our industry improve and sustain its global competitiveness.

Source-

https://www.financialexpress.com/opinion/the-missing-large-in-msmes-a-globally-competitive-indian-mittelstand-is-the-need-of-the-hour/2063155/

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Goods and Services Tax (GST)

How GST created single market

op-ed snap | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GST

Mains level: Paper 3- GST and its benefits to various stakeholders

The article analyses the instrumental role played by the GST in transforming nation into a single market dismantling the barriers across the states.

Reduced tax burden on consumers

In the pre-GST era, the total of VAT, excise, CST and their cascading effect led to 31 per cent as tax payable, on an average, for a consumer.
In its first two years, as the collections improved, the GST Council kept reducing the tax burden on consumers.
Most items have been brought in the 18 per cent, 12 per cent or even 5 per cent category.
Most items of daily common use are in the zero to 5 per cent slab.
An analysis by the Reserve Bank of India (RBI) observes that since the roll out of GST, the rate changes have brought down the GST incidence from 14 per cent to 11.6 per cent.
This explains the revenue loss stated above. The consumer pays less tax now under the GST.

Flexibility and increased compliance

Taxation threshold for goods was increased to Rs 40 lakh.
The composition limit was increased from Rs 75 lakh to Rs 1.5 crore.
For manufacturers, composition tax rate was lowered from 2 per cent to 1 per cent.
The composition scheme was extended to services as well.
Special lower rates without Input Tax Credit (ITC) were prescribed for construction and restaurants.
As per an RBI calculation, the weighted GST rate at present is 11.6 per cent.
The revenue-neutral rate determined at the time of GST introduction by its own committee was 15.3 per cent.

Widened tax base

Today, there are 1.2 crore GST assessees compared to 65 lakh at the time of introduction of the tax regime.
The average revenue collected per month for the nine months (July-March) in 2017-18 was Rs 89,700 crore in 2018-19 it rose by 10 per cent to Rs 97,100 crore.
In FY 2019-20, the revenue per month was Rs 1,02,000 crore.
This steady increase was despite the various concessions and rate reductions mentioned above.

Simplification

GST is an IT-enabled platform.
Accounting and billing software is provided free to the small taxpayers.
Those with nil return to file can do so with an SMS.
Since the registration is completely online, the refund process is also fully automated.
The Centre is the only refund disbursal authority and no physical interface is required.

Agriculture sector under GST

Concessions are extended to the agriculture sector under GST, agricultural inputs such as fertilisers, machinery have seen a considerable reduction in rates.
Other inputs such as cattle/poultry/aquatic feeds are kept at the nil rate.
Agricultural produce such as vegetables, fruits, flowers and foodgrains are exempt from GST.
Dairy products — milk, curd, lassi, buttermilk and minor forest produce such as lac, shellac and sisal leaves are also exempt.
Silk cocoon, raw silk, wool, jute fibre are nil rated.
In the pre-GST era, many of these were in the 5 per cent slab.
Service inputs to agriculture are similarly treated.
Before the introduction of GST, many such items were taxed at a standard rate of 15 per cent.

MSME under GST

Micro, small and medium enterprises (MSMEs) have consistently received sensitive treatment under the GST regime.
Items that have large employment creating activities, rough diamond/precious stone sorting and polishing for example, have seen a GST reduction from 3 per cent to 0.25 per cent.
Services rendered by MSMEs have also received such sensitive treatment.

Concerns

Tax reduction in some cases has led to an inversion of duty structure.
Manufactured goods in lower slabs have suffered due to inversion in the duty structure.
With lockdowns and consequential deferrals in tax payments, compensation payments to the states is a concern that the Council has taken cognisance of.

Consider the question “Elaborate on how the GST has been benefiting the various stakeholders and helped in transforming India into a single market?”

Conclusion

The states have shown maturity and understanding. The spirit of collective responsibility and statesman-like thinking have kept mutual trust and confidence high. The much talked about cooperative federalism is actually in action in the GST Council.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Judicial Reforms

Office of the Attorney General and its role in contempt cases

| Polity | Mains Paper 2: Executive & Judiciary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AGI: Role, powers and function

Mains level: Not Much

Attorney General of India has refused consent to a plea to initiate criminal contempt action against an actor for “scandalizing” the Supreme Court.

Note important power, functions and limitations of AGI. A bluff can be created with the dicey statements in the prelims.

What is the case for prior approval in Contempt Cases?

The prior consent in writing of the Attorney General is required for the Supreme Court to initiate criminal contempt action in a case a/c to the Contempt of Court Act, 1971.
AGI consent in a form of check on the much-debated suo-motu power of criminal contempt.

Attorney General of India (AGI)

The AGI is the Indian government’s chief legal advisor and is a primary lawyer in the Supreme Court of India.
They can be said to be the advocate from the government’s side.
They are appointed by the President of India on the advice of Union Cabinet under Article 76(1) of the Constitution and holds office during the pleasure of the President.
They must be a person qualified to be appointed as a Judge of the Supreme Court ( i.e. a judge of some high court for five years or an advocate of some high court for ten years or an eminent jurist, in the opinion of the President and must be a citizen of India.).

Functions and duties

The AGI is necessary for advising the Government of India on legal matters referred to them.
They also perform other legal duties assigned to them by the President.
The AGI has the right of audience in all Courts in India as well as the right to participate in the proceedings of the Parliament, though not to vote.
The AGI appears on behalf of Government of India in all cases (including suits, appeals and other proceedings) in the Supreme Court in which GoI is concerned.
They also represent the Government of India in any reference made by the President to the Supreme Court under Article 143 of the Constitution.
The AG is assisted by a Solicitor General and four Additional Solicitors General.

Powers

The AG can accept briefs but cannot appear against the Government.
They cannot defend an accused in the criminal proceedings and accept the directorship of a company without the permission of the Government.
The AG is to be consulted only in legal matters of real importance and only after the Ministry of Law has been consulted.
All references to the AG are made by the Law Ministry.

Limitations

The AG:

should not advise or hold a brief against the Government of India
should not defend accused persons in criminal cases without the permission of the government of India
should not accept appointment as a director in any company without the permission of the government

Global precedence

Unlike the Attorney General of the United States, the AGI does not have any executive authority.
Those functions are performed by the Law Minister of India.
Also, the AG is not a government servant and is not debarred from private legal practice.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Water Management – Institutional Reforms, Conservation Efforts, etc.

BIS’ draft standard for drinking water supply

| Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BIS

Mains level: Water supply standards in India

The Bureau of Indian Standards (BIS) has prepared a draft standard for the supply system of piped drinking water.

Try this question for mains:

Q.Climate change, scarcity, population growth, demographic changes and urbanization pose challenges for water supply systems in India. Analyse.

About the Draft

Labelled ‘Drinking water supply quality management system — requirements for piped drinking water supply service’, the draft has been prepared by the BIS’ Public Drinking Water Supply Services Sectional Committee.
It outlines the process of water supply, from raw water sources to household taps.
It has been developed keeping in view the Centre’s Jal Jeevan Mission for providing safe and adequate drinking water to all rural households by 2024 through tap connections.
It is expected to make the process of piped water supply more uniform, especially in rural and underdeveloped areas of the country where the system runs on various government orders and circulars.
At present, the standard is expected not to be made mandatory.

Highlights of the draft

The draft outlines the requirements for a water supplier or a water utility on how they should establish, operate, maintain and improve their piped drinking water supply service.
The process begins with the identification of a water source, which can either be groundwater or surface water sources such as rivers, streams or reservoirs.
It doesn’t mention how water utilities should treat the water, but states that the process should be planned in such a manner that after treatment it should conform to the Indian Standard (IS) 10500 developed by the BIS.
The IS 10500 outlines the acceptable limits of heavy metals such as arsenic, and other parameters like the pH value of water, its turbidity, the total dissolved solids in it, and the colour and odour.

What is the water supply process?

The supply system as outlined in the draft should begin with the identification of a raw water source.
Water should then be pumped into the treatment plant and treated to achieve acceptable drinking standards.
After the water is released from the plant, there should be reservoirs in the distribution system for storage of this water, and disinfection facilities to get rid of contamination at any stage of distribution.
Pumping stations or boosters, if necessary, should be provided to maintain adequate pressure throughout the distribution system.

District Metering Area (DMA) concept

The document also states that the concept of district metering area (DMA) should be adopted where possible.
DMA is a concept for controlling leakages in the water network, which is essentially divided into a number of sectors, called the DMAs, and where flow meters are installed to detect leaks.
The water supplier/utility may provide bulk water meters in the water distribution system to ensure water audit, however, the provisions should be made for domestic meters also.

What’s there in the draft in addition to the water supply process?

There are guidelines on water audit, which is a calculation of the amount of water put into distribution against the amount that is consumed.
The draft states that a water audit should be conducted on a quarterly basis.
Effort should be made by the water agency to bring down the water loss up to 15% of the total water supplied in the system.
The water utilities are also required to conduct surveys among consumers and obtain feedback on their service as per the draft.
Guidelines on internal audit, management review, documenting performance indicators for improvement, and timely action against non-conformity issues also find mention.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now