Note4Students
From UPSC perspective, the following things are important :
Prelims level: Artemis, SOPHIA, VIPER
Mains level: Study of water on moon
The Moon has water at places where none had been detected before and has potentially more water than previously believed in regions where it was already understood to exist.
Try this MCQ:
Q.NASA’s VIPER mission sometimes seen in news is related to the study of-
a)Moon
b)Venus
c)Sun
d)None of these
Water on the moon
- In two separate studies in Nature Astronomy, scientists have reported findings with potentially huge implications for sustaining humans on the Moon in the future.
- One study reports the detection of water on the Moon’s sunlit surface for the first time.
- The other estimates that the Moon’s dark, shadowy regions, which potentially contain ice, are more widespread than thought.
Why is the discovery of water important?
- Apart from being a marker of potential life, water is a precious resource in deep space.
- For astronauts landing on the Moon, water is necessary not only to sustain life but also for purposes such as generating rocket fuel.
- NASA’s Artemis programme plans to send the first woman and the next man to the Moon in 2024 and hopes to establish a “sustainable human presence” there by the end of the decade.
What was known about water on the Moon?
- Previous Moon studies, including by the ISRO Chandrayaan-1 mission, have provided evidence for the existence of water.
- In 2009, the Moon Mineralogy Mapper (M3) instrument aboard Chandrayaan-1 found water molecules in the Polar Regions.
What is different in the new discovery?
- This time, it is confirmed H20 molecules, discovered in Clavius Crater in the Moon’s southern hemisphere.
- And it is the first time water has been detected on the sunlit side, showing it is not restricted to the shadowy regions.
- SOFIA, which is a modified Boeing 747SP jetliner that flies at altitudes up to 45,000 feet, has an infrared camera that picked up the wavelength unique to water molecules.
- The data showed water in concentrations of 100-412 parts per million trapped in 1 cubic metre of soil.
How could the water have formed?
- Space rocks carrying small amounts of water could have bombarded the Moon.
- Alternatively, the Sun’s solar wind could have carried hydrogen, which then reacted with minerals in the lunar soil to create hydroxyl, which later transformed into water.
- The sunlit surface retaining the water presents a puzzle since the Moon does not have a thick atmosphere.
- One possibility is that the water gets trapped into tiny bead-like structures that were created in the soil by impacts from space rocks.
- Alternatively, the water could be hidden between grains of lunar soil and sheltered from the sunlight, NASA said.
So, how widespread is water on the Moon?
- On the sunlit side, it is not yet known whether the water SOFIA found is easily accessible.
- On the other hand, the hidden, shadowy pockets on the lunar surface called “cold traps” are spread across a combined 40,000 sq km, the other study has reported.
- The cold traps have gone without sunlight for potentially billions of years. If they do contain ice, it means water is going to be more accessible than previously assumed.
What next?
- SOFIA will look for water in additional sunlit locations to learn more about how the water is produced, stored, and moved across the Moon.
- Meanwhile, NASA’s Volatiles Investigating Polar Exploration Rover (VIPER) will carry out a mission to create the first water resource maps of the Moon.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST
Mains level: Changes in taxation after GST regime
Officials have indicated that the government is considering bringing natural gas under the ambit of the GST regime.
Try this question from CSP 2018:
Q.Consider the following items:
- Cereal grains hulled
- Chicken eggs cooked
- Fish processed and canned
- Newspapers containing advertising material
Which of the above items is/are exempt under GST (Goods and Services Tax)?
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
Why such demands?
- Global energy MNCs have called on the government to bring natural gas under the GST regime.
- Currently petrol, diesel, aviation turbine fuel, natural gas and crude oil fall outside India’s Goods and Services Tax (GST) regime.
Why is it important to bring natural gas under the GST regime?
- Bringing natural gas under the GST would lead to a reduction in the cascading impact of taxes on industries such as power and steel, which used natural gas as an input.
- This would do away with the central excise duty and different value-added taxes imposed by states.
- This would lead to an increase in the adoption of natural gas in line with the government’s stated goal to increase the share of natural gas in the country’s energy basket from 6.3% to 15%.
Back2Basics: GST
- GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
- It is charged at the time of supply and depends on the destination of consumption.
- For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
Must read:
https://www.civilsdaily.com/goods-and-services-tax-2/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Contrasting India and China's engagement with West Asia
The article draws parallels in the past in India and China’s engagement with West Asia and contrasts it with the present approach adopted by China in dealing with the region.
Strategic autonomy
- According to a former Foreign Secretary of India, Vijay Gokhale, the ideation of ‘strategic autonomy’ is much different from the Nehruvian era thinking of ‘non-alignment’.
- Speaking in January 2019, Mr. Gokhale said: “The alignment is issue based, and not ideological.”
India’s engagement with West Asia
- Pre-dating 2020, India’s outreach to West Asia sharpened since 2014.
- Oil-rich Gulf states looked at India as investment alternative away from the West to deepen their own strategic depth.
- India also doubled down on its relations with the likes of Abu Dhabi and Riyadh, giving open economic and political preference to the larger Gulf region.
- While engagements with Israel moved steadily forward, Iran lagged behind, constrained by U.S. sanctions, which in turn significantly slowed the pace of India-Iran engagements.
China’s engagement with West Asia
- China’s overtures have been steadily more adventurous as it realises two major shifts that have taken place in West Asia.
- First, the thinking in the Gulf that the American security safety net is not absolute.
- Second, the Gulf economies such as Saudi Arabia, even though trying to shift away from petro dollar, will still need growing markets to sell oil to in the coming decade as they reform their economic systems.
- The obvious two markets here are China and India.
Similarity in India and China’s approach to West Asia
- Both India and China employed similar versions of ‘non-alignment’ thinking is in West Asia based on equitable engagement with the three poles of power in Saudi Arabia, Iran and Israel.
- Both countries did it without getting involved into the region’s multi-layered conflicts and political fissures.
- However, deteriorating U.S.-China ties, the COVID-19 pandemic that started in China, followed by the Ladakh crisis, is forcing a drastic change in the geopolitical playbooks of the two Asian giants, and, by association, global security architectures as well.
Changing approach of China
- A report in September shone a light on a $400 billion, 25-year understanding between Iran and China, with Beijing taking advantage of abandonment of the Iran nuclear deal.
- China is no longer happy with a passive role in West Asia, and through concepts such as “negative peace” and “peace through development”.
- In concert with tools such as the Belt and Road Initiative, Beijing is now ready to offer an alternative model for “investment and influence”.
- It remains to be seen, however, how China balances itself between the poles of power while backing one so aggressively.
Stability of the region and opportunity for India
- From India’s perspective, the overt outreach to the Gulf and the ensuing announcements of multi-billion-dollar investments on Indian shores by entities from Saudi Arabia and the UAE is only New Delhi recognising the economic realities of the region.
- Despite entanglements in the Yemen war and general tensions between the Gulf states and Iran, the likes of Saudi Arabia, the UAE and so on have maintained relatively strong and stable economic progression.
- Israel’s recent peace accords with the UAE and Bahrain add much further weight towards a more stable Gulf region — the caveats withstanding that the operationalisation of the accords is smooth and long-lasting.
Consider the question “Despite turbulence in the region, India’s engagement with West Asia has always been characterised by non-alignment and ethos of equitable engagement. In light of this, elaborate on India’s approach to the region and region’s importance for India.”
Conclusion
While in the recent past, the Indo-Pacific, with the development of the Quad, has taken centre stage, other geographies such as West Asia have also started to showcase bolder examples of New Delhi and Beijing’s metamorphosing approaches towards the international arena.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-US relations
Changing geopolitical factors have accelerated further the deepening of India-US ties. The article analyses the current circumstances and evolution of the bilateral relations.
Background against which 2+2 dialogue taking place
- The 2+2 dialogue between India and the United States in Delhi this week marks an important moment in bilateral relations.
- The 2+2 dialogue comes just three weeks after the foreign ministers of the Quad — or the Quadrilateral Security Framework — met in Tokyo.
- It also takes place amidst a profound structural shift in great power politics as well as turbulence in the international economic order intensified by the coronavirus pandemic.
- The dialogue follows India’s first-ever participation in a meeting of the exclusive Five Eyes grouping that facilitates intelligence-sharing among the US, Canada, UK, Australia and New Zealand.
- A few days ago, Delhi announced the much-awaited expansion of the annual Malabar exercises to include Australia.
Background of the past engagements
- Signing the historic civil nuclear initiative ended India’s prolonged atomic isolation in the world laid the outline of a broader framework for security cooperation.
- Due to the deep divisions within the national security establishment, the leadership and some political constraints faced by the government, the coalition broke up.
- The focus was on keeping visible distance from the US in the name of non-alignment, strategic autonomy, and the quest for a multipolar world.
- The relationship survived those years, thanks to the US’s perseverance.
3 Factors responsible for rapid progress in the US-India ties
1) Chines aggression on northern border
- The huge military crisis on the northern borders with China that is well into the sixth month is the first factor.
- In the past, India avoided closer security ties with the US in deference to Beijing’s sensitivities.
- In contrast, the government now has refused to pay heed to Chinese sensitivities over its policy on security cooperation with the US.
2) Disruption caused by the corona pandemic
- The coronavirus has sharpened the US debate on the dangers of excessive economic interdependence on China.
- Meanwhile, India has begun to reduce its commercial ties to Beijing in response to the PLA’s Ladakh aggression.
- This has created the conditions for a new conversation between India and the US on rearranging global supply chains away from China.
- So, the Quad Plus conversations have drawn in Brazil, Israel, New Zealand, South Korea and Vietnam with a view to rearrange the global supply chain.
3) Focus on critical technologies
- Third factor is critical technologies like artificial intelligence that promise to transform most aspects of modern life — including security, political economy and social order.
- Delhi and Washington are now focused on finding ways to collaborate on the critical technologies of the 21st century and work with their partners in setting new global rules for managing them.
Conclusion
As the regional and global order faces multiple transitions, the incentives for Delhi and Washington to sustain and advance India-US partnership are stronger than ever before and will continue into the next administration.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Transparent and accessible judicial proceedings
Attorney General of India has pushed for live-streaming court proceedings to make hearings accessible to all. But CJI sounded a cautionary note, saying it was susceptible to “abuses.”
Why such demands?
- In a first in India, the Gujarat High Court has begun live streaming of Court Proceedings on YouTube.
- The issue of live-streaming came up as a Special Bench led by the CJI was taking stock of the virtual court system initiated soon after the pandemic lockdown.
Live-streaming of Court
- Justice Chandrachud was one of the three judges on the Bench that gave the verdict on live-streaming in September 2018.
- In fact, he had noted in his separate opinion that live-streaming of proceedings would be the true realization of the “open court system.”
- His suggestions were later adopted as guidelines in the September 2018 judgment.
Why there should be live-streaming?
- Improved accountability: Live-streaming of court proceedings would serve as an instrument for greater accountability and formed part of the Code of Criminal Procedure, 1973.
- Living up the expectation of Constitution: Live Streaming of Court proceedings is manifested in public interest. Public interest has always been preserved through the Constitution article 19 and 21
- Empowering the masses: It will enable the legal system to deliver on its promise of empowering the masses.
- More transparency: It will encourage the principle of open court and reduce dependence on second-hand views. It will effectuate the public’s right to know.
- This would inspire confidence in the functioning of the judiciary as an institution and help maintain the respect that it deserved as a co-equal organ of the state.
- Academic help: Live streaming may also be a help for academic purposes.
Issues with live-courts
The Parliamentary Standing Committee (PSC) of the Department of Personnel, Public Grievances and Law and Justice have tabled its report on the functioning of Virtual Courts and Digitization of Justice Delivery in Parliament.
Following are the four key considerations and recommendations of the committee as far as mainstreaming of virtual courts is concerned:
(1) The question of access:
- A large number of litigants and advocates lack internet connectivity and requisite infrastructure and means to participate in virtual hearings and the process. This has serious implications.
- The obvious one being that a large chunk of our citizenry is vulnerable to being excluded from the process of justice delivery owing to factors beyond their control.
- The committee also opined that the judiciary considers solutions such as mobile video conferencing facilities to allow for meaningful participation from those living in remote geographies.
(2) The degree of comfort:
- A highly underrated but equally consequential factor is whether everyone, even if access to reliable internet connectivity is universal, is comfortable and well versed with the new tools and mediums of justice delivery.
- Big, well-to-do law firms and advocates in urban areas would face no issues as compared to those participants in rural areas given the digital divide.
(3) The idea of open courts itself:
- Virtual courts allegedly threaten the constitutionality of Court proceedings and undermine the importance of Rule of law which forms a part of the basic structure of the Constitution.
- Expressing concern over the opaqueness of such hearings, critics state that virtual courts are antithetical to the open court system given the limited access that they allow for.
(4) The question of Privacy and Data Security:
- This is where the report makes some interesting and innovative suggestions vital to the performance of any digital justice delivery mechanism.
- It also took note of the fact that most virtual court proceedings in India currently take place using third-party software or platforms and a few of them have already been rejected earlier on grounds of being unsafe to use.
- The committee noted how courts across the world have had instances of intrusion and data privacy or security concerns while adapting to an entirely virtual mode of conducting hearings.
Still, digital records are necessary
- Litigants depend on the information provided by lawyers about what has transpired during the course of hearings.
- When the description of cases is accurate and comprehensive; it serves the course of open justice.
- Again, if a report on a judicial hearing is inaccurate, it impedes the public’s right to know.
Best examples
- Internationally, constitutional court proceedings are recorded in some form or the other.
- In Australia, proceedings are recorded and posted on the high court’s website.
- Proceedings of the Supreme Courts of Brazil, Canada, England and Germany are broadcast live.
- The Supreme Court of the US does not permit video recording, but oral arguments are recorded, transcribed, and available publicly.
- And democracies aside, in China, court proceedings are live-streamed from trial courts up to the Supreme People’s Court of China.
Significance of open-courts
- India stands alone amongst leading constitutional democracies in not maintaining audio or video recordings or even a transcript of court proceedings.
- Court hearings can be turning points in the life of a nation: ADM Jabalpur comes readily to mind. More recently, there is any number of cases where the Supreme Court’s judgments have changed citizens’ lives.
- Ayodhya, Aadhaar, Section 377, Sabarimala, NRC and the triple talaq judgments are among them.
Various moves for accessibility
- Over the last few years, the Supreme Court has taken steps to make justice more accessible. The Court started providing vernacular translations of its judgments.
- Non-accredited journalists were permitted to live-tweet court proceedings. During the lockdown, journalists have been permitted to view virtual court proceedings in real-time.
Way forward
- There should be live-streaming cases of constitutional and national importance as a pilot project, including Constitution Bench cases.
- Matrimonial cases and those involving national security could be excluded.
- There must be a reasonable time-delay (say 10 minutes) between the live court proceedings and the broadcast to ensure any information which ought not to be shown, as directed by the court, can be edited from being broadcast.
- The judiciary must also employ a press officer to liaise with the media, and issue simultaneously one or two page summaries of its judgments to facilitate greater public understanding.
- There has to be a greater reliance on written briefs and the significance accorded to them, time limits for oral arguments, and a greater emphasis on preparation in advance.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Plasma therapy
Mains level: Efficacy of the plasma therapy
Recently published findings on convalescent plasma therapy on Covid-19 patients have triggered a debate over its efficacy.
Plasma Therapy

- Plasma is the liquid part of the blood. Convalescent plasma, extracted from the blood of patients recovering from an infection, is a source of antibodies against the infection.
- The therapy involves using their plasma to help others recover. For Covid-19, this has been one of the treatment options.
- The donor would have to be a documented case of Covid-19 and healthy for 28 days since the last symptoms.
How is it done?
- The process to infuse plasma in a patient can be completed quickly.
- It only requires standard blood collection practices, and extraction of plasma.
- If whole blood is donated (350-450 ml), a blood fractionation process is used to separate the plasma.
- Otherwise, a special machine called aphaeresis machine can be used to extract the plasma directly from the donor.
- While blood is indeed extracted from the donor, the aphaeresis machine separates and extracts the plasma using a plasma kit, and the remaining blood components are returned into the donor’s body.
WHO’s guidelines
- WHO guidelines in 2014 mandate a donor’s permission before extracting plasma.
- Plasma from only recovered patients must be taken, and donation must be done from people not infected with HIV, hepatitis, syphilis, or any infectious disease.
- If whole blood is collected, the plasma is separated by sedimentation or centrifugation, then injected in the patient.
- If plasma needs to be collected again from the same person, it must be done after 12 weeks of the first donation for males and 16 weeks for females, the WHO guidelines state.
What has happened to spark the debate?
- An ICMR study has found convalescent plasma was not associated with a reduction in progression to severe Covid-19 or all-cause mortality.
- While the use of this therapy seemed to improve the resolution of shortness of breath and fatigue in patients with moderate Covid-19, this did not translate into a reduction in 28-day mortality or progression to severe disease.
- Progression to severe disease or death at 28 days after enrolment occurred in 44 (19%) of the participants in the intervention arm as compared to 41 (18%) in the control arm.
What happens if ICMR does remove the therapy from its guidelines?
- The authorisation of convalescent plasma as a treatment for Covid-19 in India has led to questionable practices such as calls for donors on social media, and the sale of convalescent plasma on the black market.
- The ICMR has been cautious because of the trial findings.
- However, those guidelines are not necessarily binding and it is too early to dismiss convalescent plasma therapy. But there are other issues.
- The therapy involves resource-intensive processes such as plasmapheresis, plasma storage, and measurement of neutralizing antibodies.
Way ahead
- This is a new virus, and around the world, the evidence is still emerging on the best therapeutic options.
- Covid care is individualized care. Use of the right medication on the right patient does work.
- Some of the therapies can be continued on compassionate grounds.
- However, the potential harms of the non-immune components of convalescent plasma should be rigorously investigated.
- Only donor plasma with detectable titers of neutralizing antibodies should be given to trial participants, to ensure that the potential for benefit exists for all intervention arm patients.
Try this question:
Q.What is convalescent plasma therapy? Discuss its efficacy and limitations for COVID-19 treatment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bundi architecture
Mains level: Not Much

A recent episode of the Ministry of Tourism’s Dekho Apna Desh Webinar series has focused on the architectural heritage of Bundi, Rajasthan.
Try this PYQ:
Q.With reference to Dhrupad, one of the major traditions of India that has been kept alive for centuries, which of the following statements are correct?
- Dhrupad originated and developed in the Rajput kingdoms during the Mughal period.
- Dhrupad is primarily a piece of devotional and spiritual music.
- Dhrupad Alap uses Sanskrit syllables from Mantras.
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) None of the above
About Bundi
- Bundi erstwhile capital of Hada Rajput province known as Hadauti located in south-eastern Rajasthan is one such place.
- Bundi is also known as City of step walls, blue city and also as Chotti Kashi.
- In ancient times, the area around Bundi was apparently inhabited by various local tribes, of which the Parihar Tribes, Meena was prominent.
- Later the region was governed by Rao Deva, who took over Bundi from Jaita Meena in 1242, renaming the surrounding area as Haravati or Haroti.
- For the next two centuries, the Hadas of Bundi were the vassals of the Sisodias of Mewar and ruled by the title of Rao until 1569, after Emperor Akbar.
Important architecture
- The City of Bundi grew outwards Taragarh hill. A small habitat developed at the foothills of the fort itself.
- The location of the royal palace was on a steep slope overlooking the valley below, providing a view of the vast surrounding hinterland.
- Garh Mahal became the focus and an imposing landmark on the skyline of Bundi was visible from the valley below. In the next 200 years, the entire cluster was built.
- The best example of medieval Indian city exhibiting water harvesting methods adopted at settlement level as well as the finest examples of water architecture.
- Location of Baoris and Kunds outside the walled city was also influenced by social considerations as access to baoris and kunds were located within the walled city was controlled.
Architectural heritage of Bundi can be classified as:
1) Garh (Fort): Taragarh
2) Garh Mahal (Royal Palace)
- Bhoj Mahal
- Chattar Mahal
- Ummed Mahal
3) Baori (Step well)
- Khoj Darwaja ki Baori
- Bhawaldi Baori
4) Kund (Stepped tank)
- Dhabhai ji ka Kund
- Nagar Kund & Sagar Kund
- Rani Kund
5) Sagar mahal (Lake Palace)
- Moti Mahal
- Sukh Mahal
- Shikar Burj
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Echinops Sahyadricus
Mains level: Not Much

Researchers have discovered a new species of Echinops Sahyadricus (Sahyadri Globe Thistle) from the Rajgad Fort in the Sahyadri Mountains.
Echinops Sahyadricus
- Echinops is a genus of about 130 species of flowering plants found in tropical and North Africa, the Mediterranean basin and West Asia, extending eastwards to China and Japan.
- The highest number of taxa (76) is concentrated in the Iranian plateau. Five species are found in India including two in Maharashtra.
- The new species is unique because of the size of its composite inflorescence which measures up to 9 cm in diameter that is relatively large compared to other Echinops species found around the world.
- It grows vegetative on open grassy slopes of mountains in four months of monsoon and blooms in November. Fruiting can be seen in December.
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From UPSC perspective, the following things are important :
Prelims level: Soil degradation: Reasons and impact
Mains level: Paper 3- Land degradation and using land reforms to deal with it
Land ceiling laws, enacted to deal with the problems of a bygone era, remains unchanged even in most of the States. This has given rise to different problems. The article suggests the relaxation of the ceiling acts to deal with the problem of land degradation and water depletion.
Background of the ceiling laws
- India implemented land ceiling laws to deal with the ‘zamindars’ and impose landowning limits based on total production value of land—irrigated, grove, orchard, dry, etc.
- Landholdings were scrutinised at individual and family level, and large farms were discouraged.
- For most states, the ceiling ratio of dry-to-irrigated land is 3:1.
Issues with the ceiling laws
- In 2020, State land laws remain unchanged, trapping farm families in a negative ownership trap.
- As with each generation, the average landholding of individuals reduces.
- Dropping farm incomes, higher inputs costs, low sale price, soil degradation and water depletion erode production and farm value.
- A progressive farmer hits production saturation due to limited land.
- Contract farming has been no consolation either.
- The result is that the Indian farm size is very small, 86% under two hectares, and is decreasing as the average size of operational holding has declined to 1.08 hectares in 2015-16 versus 1.15 in 2010-11 (Agricultural Census 2015-16).
- The government is reticent on the Economic Survey’s recommendations to increase land ceiling limits.
- Recently, Karnataka rescinded land limit reforms.
How to deal with soil degradation and water depletion
- 30% of India’s land is degraded, bad agri-practices threaten soil health, and water-guzzling crops like paddy, sugarcane, etc, have resulted in a water crisis in many places.
- States must study soil conservation program of the US, which paid farmers subsidies for soil conservation or allowing land to be fallow.
- States should incentivise farmers for agro-ecological plantations and agro-forestry by relaxing land ceiling limits for them.
- State Acts may include organic plantations under exempt categories similar to tea/rubber plantations.
- Native biodiversity based mixed orchards, from mahua to moringa, can be encouraged and exempted by state governments.
- Policy change will have benefits—soil and water rejuvenation, increase in farmers’ incomes and new products for the free market.
- The return of organic matter and biodiversity will sustain farmland productivity.
- Plus APEDA predicts a $50 billion organic export 2030, but the cherry would be additional carbon credits.
- If 10% of arable land converts to organic grove land, India will mitigate climate change and pollution.
- Each hectare with 0.01% humus can store 80,000 litres of water. We need a central policy to bolster this drive.
- Farmers may take over waste or degraded land, beyond land ceiling limits, and restore land as a carbon sink and produce more nutrition per acre.
- As farmers will care for these lands, the government’s financial burden to restore wastelands will lessen.
Consider the question “Land degradation threatens India’s future if not dealt with in time. In light of this, examine the reasons for soil degradation and suggest the ways to deal with it”
Conclusion
As a nation, we have a choice to steer the bigger farms towards agro-ecology or allow industrial farms to take over rural India. The government needs to bring out a fourth Ordinance to free the land for healing the Earth.
Source:-
https://www.financialexpress.com/opinion/reform-land-ceiling-laws-incentivise-farmers-for-agro-ecological-plantations-and-agro-forestry/2113635/
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From UPSC perspective, the following things are important :
Prelims level: MSP
Mains level: Paper 3- Delay in agri-reforms and politics
Reforms in agriculture have been overdue. But the passage of farm bills by the Parliament has evoked opposition from several stakeholders. However, the passage of bills by the Punjab Assembly is the first from any State Assembly. The article explains how politics dominates agriculture reforms and its implications for economic growth.
States trying the negate the farm bill passed by Parliament
- By passing its farm bills, Punjab has become the first state to legislate to negate impact of legislation enacted by Parliament last month.
- Other states like Rajasthan and Chhattisgarh, could follow suit soon.
- Notwithstanding whether President Ram Nath Kovind gives his assent to the state bills that undermine the central ones, the important issue is to determine how much of this conflict is about economics aimed at helping farmers and how much sheer politics.
Issues with Punjab’s farm bills
- Punjab’s farm bills prohibit private players from buying wheat and paddy below the MSP even outside the APMC markets.
- It doesn’t apply to other crops, say maize, cotton, pulses and oilseeds that are under the ambit of the central MSP system.
- The point is that this pertains only to wheat and paddy.
- The bill could even have been extended to milk and vegetables by declaring local MSPs for them, but it didn’t do that.
- Because the state government knows full well that it will create a fiasco in agri-markets, which might boomerang on it politically.
- Law for wheat and paddy will not help farmers as the Centre already buys more than 95 per cent of Punjab’s wheat and paddy at MSP through the Food Corporation of India (FCI) and state procurement agencies.
Economic roots of politics over MSP: Lessons from the past
- Demand that MSP be made a legal instrument (rather than indicative) actually exhibit deep distrust of the private sector and markets.
- In1972 government announced that the wholesale trade in wheat and rice (paddy) will be taken over by the government as traders were being unscrupulous in not giving farmers their due MSP and manipulating prices.
- The first marketing season of the government takeover of wholesale wheat trade, in 1973-74, saw a major fiasco.
- Market arrivals dropped, and wheat prices shot up by more than 50 per cent. It was a bitter lesson.
Long overdue reforms in agriculture
- Economic reforms in 1991 took some time to yield results, but, by the 2000s, India was taking 7 per cent.
- But even the 1991 economic reforms bypassed agriculture marketing reforms.
- It was only in 2003, a model act on agri-marketing was circulated to the states.
- But that model act did not go far enough.
- From 2004 to 2014 government did not pursue any major agri-marketing reforms.
- In food government enacted the National Food Security Act in 2013, giving 5 kg wheat or rice to 67 per cent of the population at Rs 2/kg and Rs 3/kg.
- A high-level committee (HLC) under Shanta Kumar was formed in 2014 to restructure the grain management system.
- The committee suggested major changes, including cash transfers in the public distribution system, and overhauling the FCI’s operations and free markets to make the system more efficient.
- But the government could not undertake bold reforms, except some marginal tinkering of labour rules in the FCI.
Conclusion
The COVID-19 crisis opened a window of opportunity to reform the agri-marketing system. The government grabbed it — this is somewhat akin to the crisis of 1991 leading to de-licensing of industry. Patience and professionalism will bring rich rewards in due course, not noisy politics.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- US Presidential election and Implications for India
Though it is the election held in the US for the election of the US President, it is closely followed throughout the world given the dominant position of that country in the world and impact of the US Presidents decision on the world. This article analyses the implications for India in both the scenarios re-election of Trump or Joe Biden winning the election.
Implications for India
- Broader foreign policy decisions will have significant implications for India.
- Particularly consequential will be how a second Trump administration or a Biden administration perceive and approach China and, relatedly, the question of America’s role in the world.
- The outcome will depend on the choices that the next American president makes on key personnel and policies.
Analysing Trump administration’s approach to China from India’s perspective
- The Trump administration’s more hawkish view of China broadly converges with Indian concerns about a rising China’s actions and intentions.
- And it has facilitated the Trump administration to assign India an important role in its strategic framework, including through the Free and Open Indo-Pacific concept.
- This has laid the basis for defence and security cooperation, helped to manage differences with Delhi on trade, Russia, Iran, and human rights, and vocal American support for India in the ongoing crisis with China.
- Unlike India’s subtler approach to highlighting Beijing’s malign behaviour, the administration’s more explicit one has put a global spotlight on Chinese assertiveness.
- However, there are aspects of President Trump’s China approach that have caused concerns in Delhi.
- There has been concern about Trump striking a deal with Chinese leader Xi Jinping since summit in April 2017.
- The administration subsequently pivoted to competition with China that summer.
- Concerns have also been raised due to neglect in the Trump administration of developments related to Hong Kong, Xinjiang and Huawei/ZTE.
- The other aspects of Trump’s China approach that have given Delhi pause are its ideological dimensions, as well as responses like tariffs that have hurt India too.
- On the similar lines American withdrawal from international institutions and agreements that has served to benefit Beijing.
- The China prism has had its limits — it has not, for instance, resulted in concessions to India on trade and immigration.
What would be Joe Biden’s to approach towards China and implications for India
- And there is recognition among most Democrats that the US-China relationship today is different from what it was in 2009, 2012 or 2016.
- An Obama administration China hand noted that opinion in the US on approach to China has “moved from balancing co-operation and competition, to competition and confrontation”.
- But what a Biden administration sees as the terms of strategic competition with China and how it might choose to blend in cooperation will have implications for India.
- Its outcome will depend in part on the president’s views, who holds key foreign and economic policy positions, as well as Beijing’s approach.
- India will closely watch how Biden might respond to any overtures from Beijing.
- It will particularly worry about any signs that Washington would be willing to limit competition or criticism in return for Chinese cooperation on certain administration priorities.
- More broadly, it will look at whether Biden administration’s Asia policy derives from its China policy or vice versa.
- Other aspects of Biden’s preferred approach might suit India, for instance:
- 1) acting collectively with allies and partners rather than unilaterally,
- 2) Not imposing tariffs that hit allies and partners along with China,
- 3) Recommitting to international organisations in ways that could blunt Chinese influence.
- India might also broadly approve of — and could benefit from — the 3Ds of a Biden foreign policy: Domestic (renewal), deterrence, and democracy.
- If a Biden administration sees engagement with China on climate change, global health security and non-proliferation as a priority that will complicate the Indian government’s options and require adjustments.
- Moreover, with either Trump or Biden, foreign economic policy choices and budgetary ones for example, spending at home versus abroad will have crucial implications for India.
Conclusion
India will need to consider what America’s choice on November 3 will mean for American power and purpose — because assessments of that could determine how Beijing decides to act in the region and globally.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kisan Suryodaya Yojana
Mains level: Not Much
PM has launched the ‘Kisan Suryodaya Yojana’ aimed at providing day-time electricity to farmers in the State of Gujarat for irrigation and farming purposes.
Try this question from CSP 2017:
Q. The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to-
(a) Developing solar power production in our country
(b) Granting licences to foreign T.V. channels in our country
(c) Exporting our food products to other countries
(d) Permitting foreign educational institutions to set up their campuses in our country
Kisan Suryodaya Yojana
- Under the scheme, farmers will be able to avail power supply from 5am to 9pm for irrigation purposes.
- Around 234 transmission lines are to be installed under the scheme. Each line is to carry the power of 66 KW. They are to be erected to a total length of 3,490 km.
- Dahod, Patan, Mahisagar, Panchmahal, Chhota Udepur, Kheda, Tapi, Valsad, Anand and Gir-Somnath have been included under the Scheme for 2020-21.
- The remaining districts will be covered in a phase-wise manner by 2022-23.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Superconductivity
Mains level: Not Much
A study has shown that a new material superconducts at 15 degrees Celsius but at extremely high pressure.
In India, we often get to hear about the transmission losses in DISCOMS. Such losses can be zeroed with the application of superconducting cables (which is practically impossible unless we find a normal working one). The phenomena, superconductivity, however, is not new to us, UPSC may end up asking some tricky statements in the prelims regarding it.
What is Superconductivity?
- A superconductor is a material, such as a pure metal like aluminium or lead, that when cooled to ultra-low temperatures allows electricity to move through it with absolutely zero resistance.
- Kamerlingh Onnes was the first scientist who figured out exactly how superconductor works in 1911.
- Simply put, superconductivity occurs when two electrons bind together at low temperatures.
- They form the building block of superconductors, the Cooper pair.
- This holds true even for a potential superconductor like lead when it is above a certain temperature.
What is the new material?
- A new material composed of carbon, hydrogen and sulphur superconducts at 15 degrees Celsius.
- However, it needs ultrahigh pressure of about 2 million atmospheres to achieve this transition, putting off any thoughts of application to the future.
- The pressure they needed was 267 Gigapascals (GPa), or 2.6 million atmospheres.
- The pressure at the centre of the Earth is 360 GPa, so it is 75% of the pressure at the centre of the Earth.
What are Superconductors?
- Superconductors are materials that address this problem by allowing energy to flow efficiently through them without generating unwanted heat.
- They have great potential and many cost-effective applications.
- They operate magnetically levitated trains, generate magnetic fields for MRI machines and recently have been used to build quantum computers, though a fully operating one does not yet exist.
Issues with superconductors
- They have an essential problem when it comes to other practical applications: They operate at ultra-low temperatures.
- There are no room-temperature superconductors. That “room-temperature” part is what scientists have been working on for more than a century.
- The amount of energy needed to cool a material down to its superconducting state is too expensive for daily applications.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IVC
Mains level: Dairy production in IVC

A new study has shown that dairy products were being produced by the Harappans as far back as 2500 BCE.
Try this PYQ:
Q.Which one of the following is not a Harappan site?
(a) Chanhudaro
(b) Kot Diji
(c) Sohgaura
(d) Desalpur
Dairy production in IVC
- By analysing residues on ancient pots, researchers show the earliest direct evidence of dairy product processing, thus throwing fresh light on the rural economy of the civilization.
- The studies were carried out on 59 shards of pottery from Kotada Bhadli, a small archaeological site in present-day Gujarat.
How did they find it?
- The team used molecular analysis techniques to study the residues from ancient pottery.
- Pots are porous. The pot preserves the molecules of food such as fats and proteins. Using techniques like C16 and C18 analysis we can identify the source of lipids.
- Traces were seen in cooking vessels indicating that milk may have been boiled and consumed.
Significant outcome of the study
- The study has found residues in a bowl showing that either heated milk or curd could have been served.
- There are also remains of a perforated vessel, and similar vessels were used in Europe to make cheese.
- The Harappans did not just use dairy for their household.
- The large herd indicates that milk was produced in surplus so that it could be exchanged and there could have been some kind of trade between settlements.
- This could have given rise to an industrial level of dairy exploitation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Yellow dust
Mains level: Air pollution

North Korean authorities have urged citizens to remain indoors to avoid contact with a mysterious cloud of ‘yellow dust’ blowing in from China, which they have warned could bring Covid-19 with it.
Try this PYQ:
Q.Consider the following
- Birds
- Dustblowing
- Rain
- Windblowing
Which of the above spread plant diseases?
(a) 1 and 3 only
(b) 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
What is yellow dust?
- Yellow dust is actually sand from deserts in China and Mongolia that high-speed surface winds carry into both North and South Korea during specific periods every year.
- The sand particles tend to mix with other toxic substances such as industrial pollutants, as a result of which the ‘yellow dust’ is known to cause a number of respiratory ailments.
- Usually, when the dust reaches unhealthy levels in the atmosphere, authorities urge people to remain indoors and limit physical activity, particularly heavy exercise and sport.
- Sometimes, when the concentration of yellow dust in the atmosphere crosses around 800 micrograms/cubic meter, schools are shut and outdoor events cancelled in the affected areas.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Himalayan Brown Bear
Mains level: Not Much

A recent study has predicted massive habitat decline for the Himalayan brown bear (Ursus arctos isabellinus) by 2050 due to climate change.
Try this PYQ:
Q. The Himalayan Range is very rich in species diversity. Which one among the following is the most appropriate reason for this phenomenon?
(a) It has a high rainfall that supports luxuriant vegetative growth.
(b) It is a confluence of different bio-geographical zones.
(c) Exotic and invasive species have not been invasive species have not been introduced in this region.
(d) It has less human interference.
Himalayan Brown Bear
- The Himalayan brown bear is one of the largest carnivores in the highlands of Himalayas.
- It occupies the higher reaches of the Himalayas in remote, mountainous areas of Pakistan and India, in small and isolated populations, and is extremely rare in many of its ranges.
- While the brown bear as a species is classified as Least Concern by the IUCN, this subspecies is highly endangered and populations are dwindling.
- It is ‘Endangered’ in the Himalayas and Critically Endangered in the Hindu Kush.
What did the study say?
- The study carried out in the western Himalayas by scientists of Zoological Survey of India, predicted a massive decline of about 73% of the bear’s habitat by the year 2050.
- These losses in habitat will also result in loss of habitat from 13 protected areas (PAs), and eight of them will become completely uninhabitable by the year 2050, followed by loss of connectivity in the majority of PAs.
- The study highlights for the need to adopt preemptive spatial planning of PAs in the Himalayan region for the long-term viability of the species.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Malabar Exercise, Quad
Mains level: Paper 2- Defining the roles and relations between Malabar and the Quad
While highlighting the importance of navy for India, the article examines the need to define the role and relation between the Quad and Malabar.
The salience of navy for India
- It took confrontation in the Himalayas to bring focus on India’s maritime domain clearly indicates that the salience of maritime power is not yet understood in India.
- On its northern and western fronts, India faces a formidable challenge and can at best hope for stalemate due to two factors :
- 1) Economic, military and technological asymmetry between China and India.
- 2) Active China-Pakistan nexus.
- Attention has, therefore, been focused on the maritime domain, where it is believed that India may have some cards to play.
- While preparing to fight its own battles with determination, it is time for India to seek external balancing (read Quad) — best done via the maritime domain.
Evolution of Malabar Exercise
- Above is the backdrop against which one must see the progressive evolution of Exercise “Malabar”,
- At beginning, it was a bilateral event involving just the Indian and US navies.
- It became tri-lateral with the inclusion of Japan in 2015.
- And now it has transformed into a four-cornered naval drill that will also include Australia.
- Apart from its geo-political significance for the Indo-Pacific, this development poses two conundrums.
- Firstly, given the same composition, what is the distinction, now, between “Malabar” and the “Quad”?
- Secondly, does Malabar 2020 mark the release of Australia from China’s thralldom?
Defining the roles and relation betwee Malabar and Quad
- The Quadrilateral Security Dialogue or Quad has its roots in the Core Group of four senior diplomats representing the US, India, Japan and Australia.
- The group was formed to coordinate relief efforts after the Great Asian Tsunami of December 26, 2004.
- The present Quad has obviously retained this tradition and its members have neither created a charter nor invested it with any substance.
- The Quad is 16 years old now, and Malabar 28.
- Both have served a useful purpose, and a reappraisal of the roles and relationship of the Quad-Malabar concepts is, therefore, overdue.
- Since it is India which faces a “clear and present danger”, it should boldly take the initiative to do so.
Need for the Indo-Pacific Concord
- In order to rein in China’s hegemonic urges, there is need for affected nations to come together to show their solidarity and determination in a common cause.
- In this context, there is need to create a broad-based “Indo-Pacific Concord”, of like-minded regional democracies.
- This should be an organisation with a maritime security charter, which has no offensive or provocative connotations.
- Using the Quad and Malabar templates, a shore-based secretariat can be established in a central location like Port Blair, in the Andaman Islands, which would schedule and conduct periodic multinational naval exercises.
- The exercises could be structured to hone the skills of participating navies in specialisations like humanitarian assistance and disaster relief, countering non-traditional threats, undertaking search-and-rescue operations and establishing networked maritime domain awareness.
- The Concord could also designate forces to uphold maritime security or “good order at sea”.
What Australia joining Quad means
- The prospect of Australia belatedly joining the Quad is expected to reinforce the Quad and enhance its credibility.
- But there are reasons for India to be circumspect it.
- Memories are still alive of its past political ambivalence towards India, its criticism of our naval expansion and its vociferous condemnation of the 1998 nuclear tests.
- Nor should one overlook Beijing’s recent influence on Australia’s foreign policy.
- This influence on Australia’s foreing policy caused it to flip-flop over the sale of uranium to India as well as its peremptory withdrawal from the Quad in 2008.
Implications of singing of BECA with the U.S.
- India signing the BECA (Basic Exchange and Cooperation Agreement) with the US last of the four “foundational agreements” would enhance interoperability between the respective militaries.
- However, there is need to pay heed to two valid concerns:
- 1) Regarding the possible compromise of information impinging on India’s security.
- 2) Whether these agreements will barter away the last vestiges of India’s strategic autonomy.
Consider the question “The changing geopolitical equations has necessitated the formation of Indo-Pacific Concord by the democracies of the region.” In light of this, elaborate on India’s role in Quad and its implications for the region”
Conclusion
Indians, given our history, should never lose sight of the truism in international relations, that it is the unerring pursuit of national interests that guides the actions and policies of every nation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: https://www.thehindu.com/opinion/lead/indias-un-journey-from-outlier-to-the-high-table/article32932905.ece
Mains level: Paper 2- India's journey at United Nations
The article examines India’s journey at the UN as it enters it 75year. It also analyses the challenges India faced at the UN and tracks India’s transformation from being an outlier to the high table.
Three phases of India’s presence at the UN
- Seven and a half decades of India at the UN may be viewed with reference to roughly three distinct phases.
First phase: From independence to 1989
- The first phase lasted until the end of Cold War in 1989.
- During this phase, India had learnt to explore and enhance its diplomatic influence in easing armed conflicts in Asia and Africa by disentangling them from the superpower rivalry.
- India also leaned that the UN could not be relied upon to impartially resolve vital security disputes such as Jammu and Kashmir.
- India strove to utilise the UN only to focus on common causes such as anti-colonialism, anti-racism, nuclear disarmament, environment conservation and equitable economic development.
- India seemed to claim the moral high ground by proposing, in 1988 three-phase plan to eliminate nuclear weapons from the surface of earth.
- But it resisted attempts by neighbouring countries to raise bilateral problems.
- Defeat in 1962 war against China meant a definitive redesign of the country’s diplomatic style to privilege bilateral contacts over the third party role by the UN.
Second phase: 1990s
- The 1990s were the most difficult decade for India in the UN.
- The 1990s were marked by the sudden end of the Cold War, the disintegration of the Soviet Union and the emergence of the United States as the unrivalled power.
- Besides, the uncertain political climate along with the balance of payments crisis constrained the country’s capability to be active in various bodies, especially in the Security Council (UNSC) and the General Assembly.
- There was a change in India’s foreign policy: At the UN as India showed pragmatism in enabling the toughest terms on Iraq even after Gulf War or in reversing position on Zionism as racism.
- At the same time, growing militancy in Kashmir in the early 1990s helped Pakistan to internationalise the dispute with accusations about gross human rights violations by India.
- India to seek favours from Iran and China in the Human Rights Commission to checkmate Pakistan.
- The violation of the sovereignty principle by NATO intervention against Yugoslavia in 1999 without the authorisation of the UNSC deeply disturbed India.
- At the same time call for an end to aerial attacks on Yugoslavia did not garner much support in the UNSC.
- India’s diplomatic difficulties was exposed when it suffered a defeat in the hands of Japan in the 1996 contest for a non-permanent seat in the UNSC.
- India resolutely stood against indefinite extension of the Non-Proliferation Treaty in 1995.
- India strongly rejected the backdoor introduction for adoption of the Comprehensive Test Ban Treaty in 1996.
- It is against this background that India surprised the world in 1998 with its Pokhran nuclear weapon tests, ignoring the likely adverse reaction from the nuclear club.
Third phase: Rise in influence in 21st century
- The impressive economic performance in the first decade of the 21st century due to economic liberalisation and globalisation policies, helped a great deal in strengthening profile.
- This is only aided by its reliable and substantial troop contributions to several peacekeeping operations in African conflict theatres.
- India has emerged as a responsible stakeholder in non-traditional security issue areas such as the spread of small and light weapons, the threat of non-state actors acquiring weapons of mass destruction, and the impact of climate change.
- India has scaled up its contributions to development and humanitarian agencies, while India’s share to the UN assessed budget has registered a hike from 0.34% to 0.83%.
- India’s successful electoral contests for various prestigious slots in the UNSC, the Human Rights Council, the World Court, and functional commissions of the Economic and Social Council indicates its growing popularity
Major unsuccessful initiatives by India
- Two major initiatives India has heavily invested in are stuck:
- 1) The draft Comprehensive Convention on International Terrorism it drafted and revised with the hope of helping consensus.
- It encountered reservations on provisions regarding definition of terrorist and the convention’s application to state armed forces.
- 2) Second is the question of equitable expansion of the UNSC to enable India to attain permanent membership along with other claimants from Asia, Africa and Latin America.
- The move has been stuck for more than 25 years because of a lack of unity among the regional formations.
- It also includes opposition from some 30 middle powers such as Italy and Pakistan which fear losing out to regional rivals in the event of an addition of permanent seats.
- The only realistic possibility seems to settle for a compromise, i.e. a new category of members elected for a longer duration than the present non-permanent members without veto power.
Priorities at the UNSC as a non-permanent member
- India’s future role will depend on its ability to deal economic slowdown and a troubled relationship with China.
- This is pertinent as India will soon begin its two-year term as a non-permanent UNSC member (January 1, 2021).
- Its areas of priority will continue to be the upholding of Charter principles, act against those who support, finance and sponsor terrorists, besides striving for securing due say to the troop contributing countries in the management of peace operations.
- It is reasonable to assume (based on earlier patterns) that India will work for and join in consensus on key questions wherever possible.
- But it may opt to abstain along with other members including one or two permanent members.
Consider the question “Elaborate on the transformation in India’s role at UN. What are the challenges India may face as a non-permanent member of the UNSC”
Conclusion
As a non-permanent UNSC member now, India needs to uphold the Charter principles in the backdrop of a turbulent world.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CPI, WPI, Base Year
Mains level: Inflation management
The Labour and Employment Ministry has revised the base year of the Consumer Price Index (CPI) for Industrial Workers (CPI-IW) from 2001 to 2016.
Why such a move?
- This revision reflects the changing consumption pattern, giving more weightage to spending on health, education, recreation and other miscellaneous expenses while reducing the weight of food and beverages.
What is the Consumer Price Index (CPI)?

- The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
- It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living.
- The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.
- Essentially it attempts to quantify the aggregate price level in an economy and thus measure the purchasing power of a country’s unit of currency.
Types of CPI in India
- CPI in India comprises multiple series classified based on different economic groups.
- There are four series, viz the CPI UNME (Urban Non-Manual Employee), CPI AL (Agricultural Labourer), CPI RL (Rural Labourer) and CPI IW (Industrial Worker).
- While the CPI UNME series is published by the Central Statistical Organisation, the others are published by the Department of Labour.
- From February 2011 the CPI (UNME) released by CSO is replaced as CPI (urban), CPI (rural) and CPI (combined).
How it is different from WPI?
- CPI is different from WPI, or Wholesale Price Index, which measures inflation at the wholesale level.
- While WPI keeps track of the wholesale price of goods, the CPI measures the average price that households pay for a basket of different goods and services.
- WPI measures and tracks the changes in the price of goods before they reach consumers; goods that are sold in bulk and traded between entities or businesses (rather than consumers).
- Even as the WPI is used as a key measure of inflation in some economies, the RBI no longer uses it for policy purposes, including setting repo rates.
- The central bank currently uses CPI or retail inflation as a key measure of inflation to set the monetary and credit policy.
Major components of WPI
- Primary articles are a major component of WPI, further subdivided into Food Articles and Non-Food Articles.
- Food Articles include items such as Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat & Fish, etc.
- Non-Food Articles include Oil Seeds, Minerals and Crude Petroleum
- The next major basket in WPI is Fuel & Power, which tracks price movements in Petrol, Diesel and LPG
- The biggest basket is Manufactured Goods. It spans across a variety of manufactured products such as Textiles, Apparels, Paper, Chemicals, Plastic, Cement, Metals, and more.
- Manufactured Goods basket also includes manufactured food products such as Sugar, Tobacco Products, Vegetable and Animal Oils, and Fats.
Note: WPI has a sub-index called WPI Food Index, which is a combination of the Food Articles from the Primary Articles basket, and the food products from the Manufactured Products basket.
Now try this PYQ from 2014 CSP:
Q.With reference to India, consider the following statements:
- The Wholesale Price Index (WPI) in India is available on a monthly basis only
- As compared to the Consumer Price Index for Industrial Workers (CPI (IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Back2Basics: Base Year
- A base year is the first of a series of years in an economic or financial index. It is typically set to an arbitrary level of 100.
- Any year can serve as a base year, but analysts typically choose recent years. They are periodically revised to keep data current in a particular index.
- A base year is used for comparison in the measure of business activity or economic index.
- For example, to find the rate of inflation between 2013 and 2018, 2013 is the base year or the first year in the time set.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Components of forex reserves
Mains level: Not Much
India’s foreign exchange reserves touched a lifetime high of $555.12 billion, according to RBI data.
Aspirants must make a note here:
- Authority managing FOREX in India
- Components of FOREX
- IMF’s SDRs
- Emergency use of FOREX
What are Forex Reserves?
- Reserve Bank of India Act and the Foreign Exchange Management Act, 1999 set the legal provisions for governing the foreign exchange reserves.
- RBI accumulates foreign currency reserves by purchasing from authorized dealers in open market operations.
- The Forex reserves of India consist of below four categories:
- Foreign Currency Assets
- Gold
- Special Drawing Rights (SDRs)
- Reserve Tranche Position
- The IMF says official Forex reserves are held in support of a range of objectives like supporting and maintaining confidence in the policies for monetary and exchange rate management including the capacity to intervene in support of the national or union currency.
- It will also limit external vulnerability by maintaining foreign currency liquidity to absorb shocks during times of crisis or when access to borrowing is curtailed.
Where are India’s forex reserves kept?
- The RBI Act, 1934 provides the overarching legal framework for the deployment of reserves in different foreign currency assets and gold within the broad parameters of currencies, instruments, issuers and counterparties.
- As much as 64 per cent of the foreign currency reserves is held in the securities like Treasury bills of foreign countries, mainly the US.
- 28 per cent is deposited in foreign central banks and 7.4 per cent is also deposited in commercial banks abroad.
- In value terms, the share of gold in the total foreign exchange reserves increased from about 6.14 per cent as at end-September 2019 to about 6.40 per cent as at end-March 2020.
Try this PYQ:
Q. Gold tranche(Reserve tranche) refers to (CSP 2020)-
(a) A loan system of World bank
(b) One of the operations of a central bank
(c) A credit system of WTO granted to its members
(d) A credit system granted by IMF to its members
Rising above the 1991 crisis
- Unlike in 1991, when India had to pledge its gold reserves to stave off a major financial crisis, the country can now depend on its soaring Forex reserves to tackle any crisis on the economic front.
- The level of Forex reserves has steadily increased by 8,400 per cent from $5.8 billion as of March 1991 to the current level.
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