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

Tracking the big three

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2-Key areas India needs to focus on to achieve good health and well being.

Context

The article focuses on the top three Sustainable Development Goals (SDGs) of the United Nations, namely poverty elimination, zero hunger, and good health and well-being by 2030.

India’s record on extreme poverty, hunger and health

  • Decline in extreme poverty: The World Bank’s estimates of extreme poverty- measured as $1.9/per capita/per day at purchasing power parity of 2011- show a secular decline in India from 45.9 per cent to 13.4 per cent between 1993 and 2015.
  • Elimination of extreme poverty 2030: If the overall growth process continues as has been the case since, say, 2000 onwards, India may succeed in eliminating extreme poverty by 2030, if not earlier.
  • Zero hunger by 2030: Given the overflowing stock of food grains with the government, and a National Food Security Act (NFSA) that subsidises grains to the tune of more than 90 per cent of its cost to 67 per cent of the population, there is no reason to believe that India can also not attain the goal of zero hunger before 2030.
  • Health- a real challenge: The real challenge for India, is to achieve the third goal of good health and well-being by 2030. India’s performance in this regard, so far, has not been satisfactory. as per the National Family Health Survey (NFHS 2015-16)-
    • In 2015-16, almost 38.4 per cent of India’s children under the age of five years were stunted.
    • 8 per cent were underweight.
    • 21 per cent suffered from wasting (low weight for height).
    • The situation in some states like Bihar, Jharkhand and Uttar Pradesh is even worse.
  • Global Hunger Index ranking of India: No wonder, the Global Hunger Index (GHI) ranks India at 102 out of 117 countries in terms of the severity of hunger in 2019.

What are the various targets set on the nutrition problem?

  • Target on reducing the problems of underweight children: The National Nutrition Strategy, 2017, aims to reduce the prevalence of underweight children (0-3 years) by three percentage points every year by 2022 from NFHS 2015-16 estimates.
    • Why this is an ambitious target? This is an ambitious target given the decadal decline in underweight children from 42.5 per cent in 2005-06 to 35.8 per cent in 2015-16 amounts to less than 1 per cent decline per year.
  • Targets set in National Nutrition Mission: Similar targets have been set by the National Nutrition Mission (renamed as POSHAN Abhiyaan), 2017.
    • To reduce stunting by 2 per cent.
    • Under-nutrition by 2 per cent.
    • Anaemia (among young children, women and adolescent girls) by 3 per cent.
    • Low birth weight by 2 per cent.

Four areas India needs to focus to achieve the set targets

  • India has to focus on four key areas:  If India has to make a significant dent on malnutrition by 2030.
  • First- Mother’s education.
    • Multiplier effect: It is one of the most important factors that have a positive multiplier effect on child care and access to healthcare facilities.
    • Increases awareness: It also increases awareness about the nutrient-rich diet, personal hygiene, etc. This can also help contain the family size in poor, malnourished families.
    • Thus, a high priority to female literacy, in a mission mode through liberal scholarships for the girl child, would go a long way towards tackling this problem.
  • Second- Access to improved sanitation and safe drinking water.
    • The Swachh Bharat Abhiyan and Jal Jeevan Mission would have positive outcomes in the coming years.
  • Third-shift in dietary pattern
    • Shift from cereals to more nutritious food: There is a need to shift dietary patterns from cereal dominance to the consumption of nutritious foods such as livestock products, fruits and vegetables, pulses, etc.
    • But they are generally costly and their consumption increases only by higher incomes and better education.
    • Diverting the food subsidy to nutritious foods: Diverting a part of the food subsidy on wheat and rice to more nutritious foods can help.
  • Fourth- Adoption of new agricultural technology
    • Adopt bio-fortifying cereals: India must adopt new agricultural technologies of bio-fortifying cereals, such as zinc-rich rice, wheat, iron-rich pearl millet, and so on.
    • The Indian Council of Agricultural Research (ICAR) has to work closely with the Harvest Plus programme of the Consultative Group of International Agricultural Research (CGIAR) to make it a win-win situation for curtailing malnutrition in Indian children at a much faster pace — and, at a much lower cost than would be achieved under a business as usual scenario.

Examples from the world

  • Right public policies make the difference: Global experience shows that with the right public policies focusing on agriculture, improved sanitation, and women’s education, one can have much better health and well-being for its citizens, especially children.
  • China’s example: In China, it was agriculture and economic growth that significantly reduced the rates of stunting and wasting among the population and lifted millions of people out of hunger, poverty and malnutrition.
  • Brazil and Ethiopia example: According to FAO, Brazil and Ethiopia have transformed their food systems: They have targeted their investments in agricultural R&D and social protection programmes to reduce hunger in the country.

Conclusion

Despite India’s improvement in child nutrition rates since 2005-06, it is way behind the progress experienced by China and many other countries. According to the Global Nutrition Report, 2016, at the present rates of decline, India will achieve the current stunting rates of China by 2055. India can certainly do better, but only if it focuses on this issue.

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Foreign Policy Watch: India-Afghanistan

Explained: US-Taliban Pact

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: US-Taliban pact and its implications on India-Afghanistan relationship

 

 

  • The US and Taliban signed an agreement for “Bringing Peace to Afghanistan”, which will enable the US and NATO to withdraw troops in the next 14 months.
  • The pact is between the “Islamic Emirate of Afghanistan which is not recognized by the United States as a state and is known as the Taliban” and the US.
  • The four-page pact was signed between Zalmay Khalilzad, US Special Representative for Afghanistan Reconciliation, and Mullah Abdul Ghani Baradar, political head of the Taliban.

Key elements of the deal

Troops Withdrawal

  • The US will draw down to 8,600 troops in 135 days and the NATO or coalition troop numbers will also be brought down, proportionately and simultaneously.
  • And all troops will be out within 14 months — “all” would include “non-diplomatic civilian personnel” (could be interpreted to mean “intelligence” personnel).

Taliban Commitment

  • The main counter-terrorism commitment by the Taliban is that “It will not allow any of its members, other individuals or groups, including al-Qaeda, to use the soil of Afghanistan to threaten the security of the US and its allies”.
  • While Miller said the reference to al-Qaeda is important, the pact is silent on other terrorist groups — such as anti-India groups Lashkar-e-Toiba or Jaish-e-Mohammed.
  • Again, India, not being an US ally, is not covered under this pact.

Sanctions Removal

  • UN sanctions on Taliban leaders to be removed by three months (by May 29) and US sanctions by August 27.
  • The sanctions will be out before much progress is expected in the intra-Afghan dialogue.

Prisoner’s release

  • This is a possible trouble spot because the US-Taliban agreement and the joint declaration differ, and it is not clear whether the Ashraf Ghani-led government is on board with this big up-front concession to Taliban.
  • The joint declaration says the US will facilitate discussion with Taliban representatives on confidence building measures, to include determining the feasibility of releasing significant numbers of prisoners on both sides.
  • While there are no numbers or deadlines in the joint declaration, the US-Taliban pact says up to 5,000 imprisoned Taliban and up to 1,000 prisoners from “the other side” held by Taliban “will be released” by March.
  • The intra-Afghan negotiations are supposed to start in Oslo.

Ceasefire

  • This is identified as another potential “trouble spot”.
  • The agreement states ceasefire will be simply “an item on the agenda” when intra-Afghan talks start, and indicate actual ceasefire will come with the “completion” of an Afghan political agreement.

Implications of the Deal

An adieu to democracy in Afghanistan

  • The Taliban have got what they wanted: troops withdrawal, removal of sanctions, release of prisoners.
  • This has also strengthened Pakistan, Taliban’s benefactor, and the Pakistan Army and the ISI’s influence appears to be on the rise.
  • It has made it unambiguous that it wants an Islamic regime.
  • The Afghan government has been completely sidelined during the talks between the US and Taliban.
  • The future for the people of Afghanistan is uncertain and will depend on how Taliban honours its commitments and whether it goes back to the mediaeval practices of its 1996-2001 regimes.

Implications for India

  • India has been backing the Ghani-led government and was among very few countries to congratulate Ghani on his victory.
  • India’s proximity to Ghani also drew from their shared view of cross-border terrorism emanating from Pakistan.
  • There has not been formal contact with top Taliban leaders, the Indian mission has a fair amount of access to the Pashtun community throughout Afghanistan through community development projects of about $3 billion.
  • Due to So, although Pakistan military and its ally Taliban have become dominant players in Kabul’s power circles, South Block insiders insist that it is not all that grim for New Delhi.
  • these high-impact projects, diplomats feel India has gained goodwill among ordinary Afghans, the majority of whom are Pashtuns and some may be aligned with the Taliban as well.

Way Forward

  • The joint declaration is a symbolic commitment to the Afghanistan government that the US is not abandoning it.
  • Much will depend on whether the US and the Taliban are able to keep their ends of the bargain, and every step forward will be negotiated, and how the Afghan government and the political spectrum are involved.
  • Like in 1989, 1992, 1996, and in 2001, Pakistan has the opportunity to play a constructive role. It frittered away the opportunities in the past.

Back2Basics

India and the Taliban

  • India and the Taliban have had a bitter past.
  • New Delhi nurses bitter memories from the IC-814 hijack in 1999, when it had to release terrorists — including Masood Azhar who founded Jaish-e-Mohammed that went on to carry out terror attacks as such on Parliament, Pathankot and in Pulwama.
  • Quite predictably, Mullah Baradar did not name India among the countries that supported the peace process, but specially thanked Pakistan for the “support, work and assistance” provided.
  • The Taliban perceived India as a hostile country, as India had supported the anti-Taliban force Northern Alliance in the 1990s.
  • India never gave diplomatic and official recognition to the Taliban when it was in power during 1996-2001.
  • But its foreign policy establishment has shied away from engaging with the Taliban directly.

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J&K – The issues around the state

Delimitation in the UT of Jammu and Kashmir

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Delimitation

Mains level: Read the attached story

The newly created UT of Jammu and Kashmir (J&K) will be the only one in the country to undergo a delimitation exercise based on the population figures recorded in the 2011 census.

Delimitation in J&K

  • The latest readjustment of boundaries of constituencies in other States and UTs has been done on the basis of 2001 census and in future it will be carried out according to the 2031 census.
  • As per 2011 Census, the population in Kashmir region is 68,88,475, Jammu has a population of 53,78,538 and Ladakh has 2,74,289.
  • Delimitation was last done in J&K in the year 1995.

The legal basis for delimitation

  • Section 63 was introduced in the J&K Reorganisation Act so that delimitation exercise can be conducted smoothly without overlapping with other provisions of Delimitation Commission Act, 2002.
  • It is a saving clause and since J&K is a UT, it now has constitutional safeguards.
  • The provision did not require any separate legislation as it was incorporated in the primary Act.
  • It says that “until the relevant figures for the first census taken after the year 2026 have been published,” it shall not be necessary to readjust the constituencies.
  • And any reference to the “latest census figures” in shall be construed as a reference to the 2011 census figures.
  • The delimitation will be done for 90 seats as 24 seats fall in Pakistan Occupied Kashmir (PoK).

Back2Basics

Explained: Delimitation of Constituencies

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Citizenship and Related Issues

Defining Anti-national Activities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various FRs not available to Foreigners

Mains level: Read the attached story

Ever since the anti-CAA protests erupted across the country, the MHA has been quite active in filtering out foreigners among the protesters and serving them with ‘Leave India’ notices’.

What contributes to ‘Anti-government’ activities?

  • According to visa guidelines laid out by the MHA, Foreign nationals shall be required to strictly adhere to the purpose of visit declared while submitting the visa application.
  • However, a foreign national (other than a Pakistani national) coming to India on any type of visa will be allowed to avail activities permitted under tourist visa.
  • However, there are no provisions specified under “anti-government” activities subhead.
  • The absence of any such provision in visa laws or Foreigner’s Act makes it necessary for the government to define “anti-government” activities under a statute.
  • Visa laws are not in any derogation with any other law, so inferences can be drawn — which means a court can rule that whatever are defined as “anti-government” activities for Indian national is “anti-government” for foreign national too.”

What do ‘anti-government’ activities mean for an Indian national?

  • According to the lawyers, anti-government activities are those which are listed as punishable under Section 124A (sedition) of the Indian Penal Code.
  • Section 124A IPC deals with attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards, the Government established by law in India.
  • Such offences shall be punished with imprisonment for life, to which a fine may be added; or, with imprisonment which may extend to three years, to which a fine may be added; or, with fine.

Does a foreigner on Indian visa have a right to protest?

  • Right to protest peacefully is enshrined under Article 19(1)(a) of Indian Constitution which guarantees the freedom of speech and expression.
  • Article (19)(b) guarantees the citizens of the country the right to assemble peacefully and without arms.
  • Since Article 14 of the Constitution ensures equality to any person before the law or the equal protection of the laws within the territory of India, foreigners also have the right to protest peacefully, argue proponents.
  • However, the act done by the foreigner must not be anything in contravention to the existing laws of India.
  • Being a part of a peaceful protest isn’t illegal and thus, being a part of it isn’t anything wrong even if that is against the Indian government, critic says.

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Bharat Emission Standards

Bharat Stage (BS) VI emission norms

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BS VI compliant fuels

Mains level: BS norms

Oil marketing companies have informed that there will definitely be a marginal increase in retail prices of the fuels from April 1. Starting April 1, Bharat Stage (BS) VI emission norms come into force. This will be an upgrade on the currently prevalent BS-IV and BS-III norms.

Why rise in Oil prices?

  • In effect, as India moves up the BS scale, automobiles become cleaner and greener but fuel will go costly.
  • Oil refiners have invested heavily to upgrade their refineries to produce the cleaner, BS-VI compliant fuel.
  • The increase in the pump price of fuel will partially offset this cost that the oil marketing companies have paid.
  • In effect, consumers will have to pay a little extra for auto fuel that is cleaner, and which, ultimately, is expected to lead to cleaner air.

The BS norms

  • The BS emission standards are norms instituted by the Indian government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles.
  • India has been following the European (Euro) emission norms, although with a time lag.
  • The more stringent the BS norm, lower is the tolerance for pollutants in automobile tailpipe emissions. Lower tailpipe emissions are the function of both more efficient engines, and cleaner fuels.

How is BS-VI fuel different from BS-IV fuel?

  • The main difference between BS-IV and BS-VI (which is comparable to Euro 6) is in the amount of sulphur in the fuel.
  • The lower the sulphur, the cleaner the fuel, so BS-VI fuel is essentially low-sulphur diesel and petrol.
  • BS-VI fuel is estimated to bring around an 80% reduction in sulphur content — from 50 parts per million (ppm) to 10 ppm.
  • Also NOx emissions from diesel cars are expected to come down by nearly 70% and, from cars with petrol engines, by 25%.

How will things change with the new fuels?

  • Cleaner fuel alone will not make a dramatic difference to air pollution.
  • For the full benefits to be experienced, the introduction of the higher grade fuel must go hand in hand with the rollout of BS-VI compliant vehicles as well.
  • While automakers will sell only BS-VI vehicles from April 1, all BS-IV vehicles sold before that date will stay on the road for as long as their registration is valid.
  • This, however, could be a concern because using BS-VI fuel in the current BS-IV engines (or conversely, running BS-VI engines on the current-grade fuel), may be both ineffective in curbing vehicular pollution, as well as damage the engine in the long run.

Back2Basics

History of BS norms in India

  • India introduced emission norms first in 1991, and tightened them in 1996, when most vehicle manufacturers had to incorporate technology upgrades such as catalytic converters to cut exhaust emissions.
  • Fuel specifications based on environmental considerations were notified first in April 1996, to be implemented by 2000, and incorporated in BIS 2000 standards.
  • Following the landmark Supreme Court order of April 1999, the Centre notified Bharat Stage-I (BIS 2000) and Bharat Stage-II norms, broadly equivalent to Euro I and Euro II respectively.
  • BS-II was for the National Capital Region and other metros; BS-I for the rest of India.
  • From April 2005, in line with the Auto Fuel Policy of 2003, BS-III and BS-II fuel quality norms came into existence for 13 major cities, and for the rest of the country respectively.
  • From April 2010, BS-IV and BS-III norms were put in place in 13 major cities and the rest of India respectively.
  • As per the Policy roadmap, BS-V and BS-VI norms were to be implemented from April 1, 2022, and April 1, 2024 respectively.
  • But in November 2015, the Road Transport Ministry issued a draft notification advancing the implementation of BS-V norms for new four-wheel vehicle models to April 1, 2019, and for existing models to April 1, 2020.

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Wildlife Conservation Efforts

Migratory species in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various species mentioned

Mains level: Not Much

 

 

With new additions to the wildlife list put out by the Convention on the Conservation of Migratory Species (CMS), scientists say that the total number of migratory fauna from India comes to 457 species.

Migratory species in India

  • Globally, more than 650 species are listed under the CMS appendices and India, with over 450 species, plays a very important role in their conservation.
  • The Zoological Survey of India (ZSI) had for the first time compiled the list of migratory species of India under the CMS before the Conference of Parties (COP 13) held in Gujarat recently.
  • It had put the number at 451. They are the Asian elephant, great Indian bustard, Bengal florican, oceanic white-tip shark, urial and smooth hammerhead shark.
  • Birds comprise 83% (380 species) of this figure.

Various species mentioned

  • India has three flyways (flight paths used by birds): the Central Asian flyway, East Asian flyway and East Asian–Australasian flyway.
  • In India, their migratory species number 41, followed by ducks (38) belonging to the family Anatidae.
  • The estimate of 44 migratory mammal species in India has risen to 46 after COP 13.
  • The largest group of mammals is definitely bats belonging to the family Vespertilionidae. Dolphins are the second highest group of mammals with nine migratory species of dolphins listed.
  • Fishes make up another important group of migratory species. Before COP 13, the ZSI had compiled 22 species, including 12 sharks and 10 ray fish.
  • Seven reptiles, which include five species of turtles and the Indian gharial and salt water crocodile, are among the CMS species found in India. There was no addition to the reptiles list.

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Wildlife Conservation Efforts

Species in news: Eurasian Otters

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Eurasian Otters

Mains level: NA

 

 

Researchers conducting a study in Odisha’s Chilika Lake have found the presence of a viable, breeding population of Eurasian Otters, a fishing cat in the brackish water lagoon.

Eurasian Otters

  • IUCN Status: Near Threatened
  • Species in India: Smooth-coated, Asian small-clawed and Eurasian Otters
  • Habitat: Smooth-coated — all over India; Asian small-clawed — only in the Himalayan foothills, parts of the Eastern and southern Western Ghats; Eurasian — Western Ghats and Himalayas.
  • Diet comprises several small animals, mainly crabs and small fishes.
  • Lives in small packs, is mostly nocturnal, but can be diurnal in areas which are less disturbed.

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

State lethargy amidst cough syrup poisoning

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Need of the policy and standard guidelines for the drug recall.

Context

A few days ago, 12 children died in Udhampur district of Jammu due to poisoned cough syrup (Coldbest-PC).

Fourth mass glycol poisoning

  • What was the cause of the poisoning? A team of doctors at the Post Graduate Institute of Medical Education & Research, Chandigarh, attributed the deaths to the presence of diethylene glycol in the cough syrup.
  • What is Diethylene glycol? It is an anti-freezing agent that causes acute renal failure in the human body followed by paralysis, breathing difficulties and ultimately death.
  • This is the fourth mass glycol poisoning event in India that has been caused due to a pharmaceutical drug.

Measures required and example from the US

  • Preventing further deaths: The immediate concern for doctors, pharmacists and the drug regulators should be to prevent any more deaths.
    • The only way to do so is to account for each and every bottle of the poisoned syrup that has ever been sold in the Indian market and stop patients from consuming this drug any further.
  • The US example in such case: United States Food and Drug Administration (USFDA), in 1937, when the United States faced a similar situation with glycol poisoning.
    • Tracking down every bottle: Entire field force of inspectors and chemists were assigned to the task of tracking down every single bottle of the drug.
    • Even if a patient claimed to have thrown out the bottle, the investigators scoured the street until they found the discarded bottle.
    • This effort was accompanied by a publicity blitz over radio and television.
  • What is being done in India? We do not see such public health measures being undertaken here.
    • Seriousness not communicated to the pubic: Authorities are simply not communicating the seriousness of the issue to the general public.
    • A general statement: At most, the authorities in Himachal Pradesh (H.P.), who are responsible for oversight of the manufacturer of this syrup, have made general statements that they have ordered the withdrawal of the drug from all the other States where it was marketed.
    • Lack of transparency: There is no transparency in the recall process and information about recalls and batch numbers is not being communicated through authoritative channels.
    • No public announcement by the DCGI: There is no public announcement by the Drug Controller General of India (DCGI), which is responsible for overall regulation of the entire Indian market.
    • The suspect product, although manufactured in H.P., has been sold across the country.
    • The website of the DCGI, which is supposed to communicate drug alerts and product recalls, has no mention of Coldbest-PC as being dangerous as of this writing.

Need for the recall policy

  • No rules or binding guidelines on recall: One of the key reasons why the DCGI and state drug authorities have been so sloppy is because unlike other countries, India has not notified any binding guidelines or rules on recalling dangerous drugs from the market.
  • Warnings to the DGCI on lack of framework: The 59th report of the Parliamentary Standing Committee on Health as well as the World Health Organization (in its national regulatory assessment) had warned the DCGI on the lack of a national recall framework in India.
    • A set of recall guidelines was drafted in 2012 but never notified into law.

Conclusion

The drug regulator needs to take the urgent steps to avoid the repeat of such tragedies in the future and formulate a policy on the drug recall at the earliest.

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Foreign Policy Watch: India-SAARC Nations

Regional bonding: On Ranil Wickremesinghe’s prescription for peace

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Issues in the SAARC, India need to move sub-regional grouping to increase the intra-regional trade.

Context

Former Sri Lankan Prime Minister Ranil Wickremesinghe’s push for regional economic integration and for India-Pakistan dialogue should be studied carefully by New Delhi.

What are the issues with SAARC?

  • Recent moves by India: India has more or less shut down all conversations on the South Asian Association for Regional Cooperation (SAARC).
    • India also walked away from the ASEAN-led Regional Comprehensive Economic Partnership (RCEP).
  •  Mr Wickremesinghe set out a number of suggestions:
  • The original purpose of SAARC-Regional growth: India-Pakistan tensions have brought economic integration within the SAARC region to a “standstill”.
    • That the original purpose of the South Asian group was to build a platform where bilateral issues could be set aside in the interest of regional growth.
  • Start at the sub-grouping levels: To engender more intra-regional trade, an even smaller sub-grouping of four countries with complementary economies: India, Sri Lanka, Bangladesh and Thailand, can start the process of reducing tariffs and demolishing non-tariff barrier regimes.
    • When it comes to the intra-regional share of total trade, SAARC and BIMSTEC languish behind groupings such as ASEAN, EU and MERCOSUR.
  • Economic Integration Road Map: The Sri Lankan leader also suggested that with India’s leadership, a more integrated South Asian region would be better equipped to negotiate for better terms with RCEP so as not to be cut out of the “productivity network” in Asia, and envisioned an Economic Integration Road Map to speed up the process.

Governments stand

  • Talks with Pakistan off the table: The government has made it clear that talks with Pakistan are strictly off the table, and that a SAARC summit, which has not been held since 2014, is unlikely to be convened anytime soon.
  • More reliance on bilateral deals: The government, which has taken a protectionist turn on multilateral trade pacts, is relying more on direct bilateral deals with countries rather than overarching ones that might expose Indian markets to flooding by Chinese goods.
  • India’s trade deficit with the neighbours: For any regional sub-grouping in South Asia to flourish, it is India that will have to make the most concessions given the vast trade deficits India’s neighbours have at present, which it may not wish to do.

Conclusion

  • The overall projection that India’s global reach will be severely constrained unless it is integrated with its neighbours, and tensions with Pakistan are resolved, cannot be refuted. India needs to be more accommodative for the realisation of its ambitions.

 

 

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Coronavirus – Health and Governance Issues

One country, two viruses

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- What India can learn from China's dealing with the coronavirus outbreak?

Context

China’s handling of coronavirus, in contrast to SARS, has been effective, should be a template for others.

Why lockdown of Wuhan is a big deal?

  • A move without precedent: China’s lockdown of roughly 60 million people in Wuhan and other cities in Hubei province for more than a month now is without precedent in the history of public health.
  • Best way to stop the virus from spreading: The best way to stop a virus from spreading from person to person, is to give it no place to spread to.
    • This is achieved by isolating those who are infected and quarantining those who might be infected.
  • Cordon sanitaire: In China, though, the control has moved beyond traditional quarantine to a cordon sanitaire-an exclusion zone people cannot travel into or get out of.
    • In most countries, this simply would not work for a period this long and a population that large.
  • Inconceivable move in other places: Wuhan is a city of 11 million people, slightly larger than Chennai or Bengaluru. It would be inconceivable to think of cutting off transportation in and out of these cities or asking people to stay at home for even a day, let alone a month.
    • No political control nor administrative mechanism: Like India, most countries in the world have neither the political control to impose their will on people this way nor the administrative mechanism to enforce this degree of control.

Human cost and ethic of the lockdown

  • The human cost: The human cost of such a strategy is immense.
    • Feeling of being unable to escape: The fear induced by being unable to escape from a place where a new virus is circulating is immense.
    • The worries and stresses of everyday life multiply one hundred-fold when everything from shopping for food to occupying children stuck at home becomes a challenge.
    • The slightest cough, cold or fever can trigger panic.
  • Ethics involved in the move: The ethics of the cordon sanitaire in Wuhan, as well as the quarantining by Japanese authorities of the cruise ship Diamond Princess, will be debated for years after this particular outbreak is over.
  • Slowing the spread: But whatever its human and financial cost, China’s actions in the first month of the outbreak helped to slow the spread of the virus within the country as well as internationally.

How China’s response this time is different from the SARS

  • On December 31, the Chinese government informed the WHO, and the world, of the existence of a form of pneumonia of unknown cause
    • It also told the people of Wuhan to wear masks if they had symptoms and seek medical attention.
  • Virus identification: For the world, the big breakthrough from China came on January 7, when researchers in Wuhan identified the virus as a new coronavirus.
  • Sharing of the genetic sequence of the virus: Two days later, China shared its genetic sequence with the world.
    • How genetic sequence helped? The sharing of the genetic sequence allowed labs all over the world to develop testing kits to detect the disease.
    • It also put countries on the alert for travellers with the disease, without which the new coronavirus would have spread much quicker and farther than it has so far.
  • China’s response to SARS: The Chinese response to SARS in 2003, in contrast to this, was a cover-up.
    • The disease circulated for nearly three months, enabled by government secrecy and censorship.
    • Spread of disease without warning: When travellers from China brought the disease first to Hong Kong and from there to other cities across the globe, there was no warning.
    • It was only after the disease spread in Hong Kong, that scientists and public health experts began to decipher this new virus.
    • Lessons learned: China, fortunately, learned the lessons for SARS and put together systems to identify and respond to this new disease quickly.

What India can learn from China

  • Infrastructure with speed: Public health officials all over the world, including in India, should study the speed with which China put together an infrastructure to deal with this new disease.
    • Modern, well-equipped hospitals dedicated to coronavirus patients were constructed in weeks.
  • Centralised information and logistic system: Centralised information and logistics systems and systems to ensure coordination between multiple levels of government -from the central government to provincial and municipal governments, were put into place.
    • All the systems seem to have worked reasonably smoothly, given the chaotic and complex atmosphere of a disease outbreak.
  • Unique approach: The way China has tackled this disease has been an “all of government, all of the society approach”, in the words of Bruce Aylward, the leader of the WHO team that recently spent two weeks in the country.
    • It was, as he described it, “a very old-fashioned approach”, but one that had “prevented at least tens of thousands, but probably hundreds of thousands of cases.”

Conclusion

  • In all probability, it is only a matter of time before India sees new cases. The Indian health system, as in China, is multi-layered. Some states like Kerala have strong public health infrastructure and a strong response capability. Many other states like Uttar Pradesh and Bihar do not have strong public health systems. They will find it difficult to respond and will learn that diseases, like the revolution, can be brutal.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Explained: Marine Heatwave (MHW)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Marine Heatwave

Mains level: Read the attached story

 

 

Scientists have observed unusually high sea surface temperatures (SSTs) in the Pacific Ocean around the western coast of the United States.  This marine heatwave (MHW), covering an area of roughly 6.5 million square kilometres, can affect marine life and lead to droughts in the surrounding regions.

What are MHWs?

  • We know that heatwaves occur in the atmosphere. We are all familiar with these extended periods of excessively hot weather.
  • However, heatwaves can also occur in the ocean and these are known as marine heatwaves, or MHWs.
  • These marine heatwaves, when ocean temperatures are extremely warm for an extended period of time can have significant impacts on marine ecosystems and industries.

When do they occur?

  • Heatwaves can happen in summer and also in winter, where they are known as “winter warm-spells”.
  • These winter events can have important impacts, such as in the southeast of Australia where the spiny sea urchin can only colonize further south when winter temperatures are above 12 °C.

What causes marine heatwaves?

  • Marine heatwaves can be caused by a whole range of factors, and not all factors are important for each event.
  • The most common drivers of marine heatwaves include ocean currents which can build up areas of warm water and air-sea heat flux, or warming through the ocean surface from the atmosphere.
  • Winds can enhance or suppress the warming in a marine heatwave, and climate modes like El Niño can change the likelihood of events occurring in certain regions.
  • MHWs can be caused due to large-scale drivers of the Earth’s climate like the El Niño Southern Oscillation (ENSO).

Impacts of the MHWs

  • Marine heatwaves affect ecosystem structure, by supporting certain species and suppressing others.
  • For example, after the 2011 marine heatwave in Western Australia the fish communities had a much more “tropical” nature than previously and switched from kelp forests to seaweed turfs.
  • Marine heatwaves can cause economic losses through impacts on fisheries and aquaculture.
  • Temperature-sensitive species such as corals are especially vulnerable to MHWs. In 2016, marine heatwaves across northern Australia led to severe bleaching of the Great Barrier Reef.

How do we measure marine heatwaves?

  • A marine heatwave occurs when seawater temperatures exceed a seasonally-varying threshold (usually the 90th percentile) for at least 5 consecutive days.
  • Successive heatwaves with gaps of 2 days or less are considered part of the same event.

Why study MHWs?

  • MHWs are increasing in frequency due to climate change. MHWs increased by 54 per cent in the last 30 years.
  • Despite their potential impact on the health of marine ecosystems, MHWs remain one of the least studied consequences of global warming.

Way Forward

  • Marine heatwaves clearly have the potential to devastate marine ecosystems and cause economic losses in fisheries, aquaculture, and ecotourism industries.
  • However, their effects are often hidden from view under the waves until it is too late.
  • By raising general awareness of these phenomena, and by improving our scientific understanding of their physical properties and ecological impacts, we can better predict future conditions and protect vulnerable marine habitats and resources.

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Wildlife Conservation Efforts

Locust Invasions and its mitigation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Locusts invasion

Mains level: Locusts invasion and its threats

 

 

The locust, a short-horned, desert grasshopper that attacks standing crops and green vegetation, has been making news in India since May-June 2019 when it appeared in Rajasthan and Gujarat. In Kharif season last year, it was also seen in a few areas along Punjab’s border with Rajasthan.

Context

  • The Locust Warning Organisation (LWO) has been taking measures to control attacks by the pest for the past eight decades in the country.
  • Despite all of LWO’s efforts, the chain of periodic locust attacks in India is yet to be broken.

Why Locusts attacks are deadly?

  • Adult locust swarms can fly up to 150 km (93 miles) a day with the wind and adult insects can consume roughly their own weight in fresh food per day.
  • A very small swarm eats as much in one day as about 35,000 people.
  • If allowed to breed unchecked in favourable conditions, locusts can form huge swarms that can strip trees and crops over vast areas.

About LWO

  • In India, the scheme Locust Control and Research (LC&R) is responsible for control of Desert Locust.
  • It is being implemented through Organisation known as “Locust Warning Organisation (LWO)” established in 1939 and later amalgamated with the Directorate of Plant Protection Quarantine and Storage in 1946.
  • Locust Warning organization (LWO) is responsible to monitor and control the locust situation in Scheduled Desert Area (SDA) mainly in the States of Rajasthan and Gujarat while partly in the States of Punjab and Haryana.
  • It keeps itself abreast with the prevailing locust situation at National and International level through monthly Desert Locust Bulletins of FAO.

What measures are being taken by the LWO to control locust breeding/attacks in India?

  • Experts at the LWO said around three dozen offices including 10 circle offices are working on this issue.
  • They have been doing regular field surveys to keeping a close and regular watch on an over two lakh sq. km area (nearly 11,500 villages) of three states including 1.79 lakh sq. km in Rajasthan (52 per cent of the state’s total area), and the remaining in Gujarat and Haryana.
  • To observe the locust, intensive surveys are conducted by walking along the wind direction and driving at low speed to count flying locusts.

How often have there been locust attacks in India?

  • The pests have been appearing periodically after a gap of 2-3 or 5-7 years. Around 26 locust attacks have taken place in India in two major cycles.
  • After independence (1947), 25 attacks were observed. Among these, the attacks of 1949-55, 1962 and 1993 were most devastating when 167 and 172 swarms were noticed in 1962 and 1993 respectively.
  • Since 1993, locust attacks have occurred less frequently. The latest attack of 2019-20, has had quite a severe effect on crops in Rajasthan.

Financial losses incurred

  • According to LWO, to date, the financial loss due to locusts is said to be Rs 50 lakh, Rs 2 lakh and Rs 7.18 lakh in 1962, 1978 and 1993 respectively.
  • A loss of Rs 2 crore was incurred in 1940-46 and 1949-55. Before the LWO was formed, a loss of Rs 10 crore is estimated in the 1926-31 cycle.

Why has the chain not been broken even after 80 years?

  • LWO experts said it is because there are 30 countries in four regions of different continents that have an arid climate with large deserts that provide an ideal breeding ground for the locust.
  • Most of the time, locusts are coming to India from Pakistan, or from the Middle East via Pakistan.
  • There are four commissions for these 30 countries which include Iran, Pakistan, Afghanistan and India.
  • Laxity by any country would lead to its spread in all these countries which they invade one after another by following almost the same path.
  • The swarms which are coming to India (Rajasthan) have been following the same path, starting from central or western region and then Pakistan mostly in summers.
  • Apart from breaking the chain of summer attacks, the winter swarm has now posed another challenge.

Where did the current locust attack originate?

  • The locust breeds in high temperatures and high humidity, which is prevalent in areas around the Red Sea.
  • The current attack in India, which started in 2019, has its origin in Yemen, where there was internal conflict and civil war.
  • When the locust was breeding in heavy numbers there in 2018-19, the country could not take care due to its attention towards the civil war and lack of resources to control it.
  • The insect went out of control, took the route of Saudi Arabia, Iran, Pakistan, Somalia, Ethiopia and other countries located on both sides of the Red Sea where they multiplied rapidly.

Control measures

  • The chain can be broken only when the pest is killed at the time of breeding or before migration to another country.
  • Farmers used to try to drive away the locusts by lighting fires. They also dug up the eggs.
  • Now crops can be sprayed with insecticides from vehicles or airplanes.
  • Scientists are trying to improve the control of locusts, by preventing or dispersing swarms.

Also read:

Massive locust invasion threatens Gujarat farmers

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

What is the ‘Raman effect’?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Spectroscopy, Raman Effect

Mains level: Applications of Raman Effect

 

 

Yesterday, February 28th was celebrated as National Science Day. In 1986, the Govt. of India designated this Day, to commemorate the announcement of the discovery of the “Raman effect”.

CV Raman

  • Raman conducted his Nobel-prize winning research at IACS, Calcutta.
  • While he was educated entirely in India, Raman travelled to London for the first time in 1921, where his reputation in the study of optics and acoustics was known to physicists such as JJ Thomson and Lord Rutherford.
  • The Raman Effect won scientist Sir CV Raman the Nobel Prize for physics in 1930.
  • It was also designated as an International Historic Chemical Landmark jointly by the American Chemical Society (ACS) and the Indian Association for the Cultivation of Science (IACS).
  • His speciality was the study of vibrations and sounds of stringed instruments such as the Indian veena and tambura, and Indian percussion instruments such as the tabla and mridangam.

The Raman Effect

  • In 1928, Raman discovered that when a stream of light passes through a liquid, a fraction of the light scattered by the liquid is of a different colour.
  • While Raman was returning from London in a 15-day voyage, he started thinking about the colour of the deep blue Mediterranean.
  • He wasn’t convinced by the explanation that the colour of the sea was blue due to the reflection of the sky.
  • As the ship docked in Bombay, he sent a letter to the editor of the journal Nature, in which he penned down his thoughts on this.
  • Subsequently, Raman was able to show that the blue colour of the water was due to the scattering of the sunlight by water molecules.
  • By this time he was obsessed with the phenomenon of light scattering.

Observing the effect

  • The Raman Effect is when the change in the energy of the light is affected by the vibrations of the molecule or material under observation, leading to a change in its wavelength.
  • Significantly, it notes that the Raman effect is “very weak” — this is because when the object in question is small (smaller than a few nanometres), the light will pass through it undisturbed.
  • But a few times in a billion, light waves may interact with the particle. This could also explain why it was not discovered before.
  • In general, when light interacts with an object, it can either be reflected, refracted or transmitted.
  • One of the things that scientists look at when light is scattered is if the particle it interacts with is able to change its energy.

Applications

  • Raman spectroscopy is used in many varied fields – in fact, any application where non-destructive, microscopic, chemical analysis and imaging is required.
  • Whether the goal is qualitative or quantitative data, Raman analysis can provide key information easily and quickly.
  • It can be used to rapidly characterize the chemical composition and structure of a sample, whether solid, liquid, gas, gel, slurry or powder.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Red Snow in Antarctica

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Red snow , How it occurs

Mains level: Impact of climate change on Antarctica

 

 

Over the last few weeks, photographs of “red snow” off the coast of Antarctica’s northernmost peninsula, have gone viral. “Red snow” or “watermelon” is a phenomenon that has been known since ancient times. Now, it raises concerns about climate change.

Red snow in Antarctica: Why it happens 

  • Aristotle is believed to be one of the first to give a written account of red snow, over 2,000 years ago.
  • What Aristotle described as worms and grub, the scientific world today calls algae.
  • This alga species, Chlamydomonas Chlamydomonas nivalis, exists in the snow in the polar and glacial regions and carries a red pigment to keep itself warm.

Signs of faster melting 

  • In turn, the red snow causes the surrounding ice to melt faster. The more the algae packed together, the redder the snow.
  • And the darker the tinge, the more the heat absorbed by the snow. Subsequently, the ice melts faster.
  • While the melt is good for the microbes that need the liquid water to survive and thrive, it’s bad for glaciers that are already melting from a myriad of other causes, the study said.
  • These algae change the snow’s albedo — which refers to the amount of light or radiation the snow surface is able to reflect back. Changes in albedo lead to more melting.

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Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.

Svalbard Global Seed Vault

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Doomsday Vault

Mains level: Not Much

 

The Svalbard Global Seed Vault — referred to as the earth’s ‘doomsday vault’ — now contains about 1.05 million seeds.

Global Seed Vault

  • The vault — in the island of Spitsbergen, midway between Norway and the North Pole — opened in 2008 and preserves seeds for several food varieties.
  • The aim of the vault is to preserve a vast variety of crop seeds in the case of a doomsday event, calamity, climate change or national emergency.
  • The vault is artificially cooled at temperatures of minus 18 degrees Celsius.
  • The low temperature and limited access to oxygen will ensure low metabolic activity and delay seed ageing.
  • The permafrost surrounding the facility will help maintain the low temperature of the seeds if the electricity supply fails.

Access to seeds

  • Vault seed samples are copies of samples stored in the depositing genebanks.
  • Researchers, plant breeders, and other groups wishing to access seed samples cannot do so through the seed vault; they must instead request samples from the depositing genebanks.
  • The samples stored in the genebanks will, in most cases, be accessible in accordance with the terms and conditions of the International Treaty on Plant Genetic Resources for Food and Agriculture, approved by 118 countries or parties.

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Issues related to Economic growth

Is RBI raising systemic risks by pushing retail credit?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 3-Is RBI raising systemic risks by pushing retail credit?

Context

Credit driven growth may not lead to sustainable growth.

Credit driven economic boom

  • RBI and govt. acting in line: Both the government and Reserve Bank of India (RBI) have acted in line with their stated commitment towards the defined fiscal and monetary stability framework.
    • Given the pressures of a dwindling growth rate and limited fiscal and monetary elbow room, this is commendable.
  • Growth without increasing systemic risk: It is critical that the decisions taken to revive growth have a high likelihood of success without increasing systemic risk in the medium to long run.
    • Recent push may add to systemic risk: In this context, it may be argued that RBI’s recent push for retail credit growth would add to systemic risk, while the benefits for India’s gross domestic product growth (GDP) may be limited.
    • Credit-driven economic booms always end in economic misery.
  • Credit is a necessary evil: To pump-prime an economy, very few tools exist other than credit.
    • Thus there is all the more reason to handle it with care. In current economic growth frameworks, economic growth requires
    • Quite often, credit creation is the ultimate source of capital.
    • If the government spends by increasing its fiscal deficit, government debt increases. If the private sector borrows to invest and kick-start growth, its leverage increases.
    • What could be the best source of credit? The best use of credit is when it is used to finance real assets in the economy.
    • Creation of financial asset: When credit does not create real assets, it inevitably creates financial assets such as bonds held by investors, loans held by banks, or accounts receivables held by firms.
    • The precursor to a crisis: An overabundance of financial assets created by credit is a precursor to a crisis.

How types of loans matters for growth and risk of the system

  • How money is used matters for reviving sustainable growth: Taking a consumer loan to splurge on a vacation or celebratory dinner does very little to support long-term growth. It creates economic activity only in the immediate period.
    • Which sector should be pushed to ramp up credit and how that money is used become important if reviving sustainable growth is the objective.
  • In a paper titled Who Gets The Credit And Does It Matter, Thorsten Beck et al studied the growth dynamics of 45 countries for the period from 1994 to 2005.
    • Only loans to firms contribute to growth: The paper concluded that only loans to firms are linked to GDP growth, the argument being that firms use credit to increase their capital stock, and thus, real assets.
    • Loans to households do not add substantially to growth: Loans to households, while having desirable social outcomes in terms of boosting consumption and allowing households to tide over short-term cash flow mismatches, do not add to sustainable GDP growth.
    • It is debatable whether consumer loans need a push at all.
  • Retail and household debt growth
    • Retail loan growth, while currently below its 2016 peak of 20%, has been managing to grow at around 15%.
    • Household debt: In December 2019, RBI cautioned lenders on household debt levels and the associated risk on retail loans.
    • Relation with banking crisis: Higher growth in household debt is associated with higher chances of a banking crisis (Household Debt And Monetary Stability, IMF, 2017).
  • Consumer loans not always add to capital stocks: Another kind of consumer loan, the home loan, need not always add to incremental capital stock. Given how slowly the supply of homes responds to demand in the short term, excess credit supply is known to add to the risk.
    • Of course, consumer loans such as education loans, which upgrade human resources, are a notable exception.
    • In fact, mortgage booms have played key roles in most credit blow-ups.
  • Surprising steps by the RBI
    • Risk weight of consumer loans lowered: Surprisingly, RBI reduced the risk weight for consumer loans other than credit card debt from 125% to 100% in September 2019.
    • Waiver to CRR requirement: Recently, RBI decided to waive lenders’ cash reserve requirement against new exposure to home, auto and Micro, Small and Medium Enterprises (MSME) loans.
  • Futile attempts to revive commercial lending:
    • Home loan growth was hovering around 15% for the last two years.
    • Commercial credit growth falling: Growth of commercial credit (loans to industry and services as per RBI), which last exhibited 20%-plus growth in June 2012, has been falling.
    • Since 2016, its annual growth averaged around 6%, with a strong downward trend observed since March 2019.
    • Efforts to revive commercial lending have not borne fruit.
    • Misplaced belief needs to be relooked: This misplaced belief—“if not commercial, let retail loans revive the economy”—needs to be re-looked.
    • The simplistic understanding that any credit uptick can revive the economy needs to change.
  • What retails at best can achieve? India’s retail credit push, if successful, may at best check the downward trend in GDP growth.
    • The argument that it will revive growth is based on optimism.
    • The assumption here being that consumption will drive the current capacity utilization of 69% to somewhere above 85%, which will trigger capital expenditure.
    • This assumes that the consumer loan boom, already a decade old, will continue for another 3-4 years.
  • Chances of household balance sheet weakening: In an environment of low job growth, it is difficult to see how household leverage will not increase.
    • If capacity utilization does not pick up sufficiently to revive growth, then along with banking and corporate balance sheets, household balance sheets will also be weakened.
    • Over the next 3-5 years, the downside of RBI’s retail push appears at least as significant as the upside.

Conclusion

  • Polity stability needed: The government and RBI must make more determined efforts to revive corporate activity. Policy stability and confidence in the business environment may push commercial credit better than mere interest rate cuts.
  • Need to increase government spending: Among the options available, using good old government spending to stimulate infrastructure spending, and eventually, the economy, appears to be a wiser option.

 

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Tax Reforms

No gains for taxpayers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: DDT-What is dividend distribution tax?

Mains level: Paper 3- What are the steps taken in the budget in order to simplify the taxation in India.

Context

Loss expected from lower tax rates may be countered by gains from the settlement of cases, higher dividend taxes on top incomes, and the wider scope for taxing international incomes.

Simplification and providing ease to the taxpayers

  • Fiscal constraints leaving no room for a lower rate: Ahead of The Union budget, taxpayers had anticipated a wide range of measures that they hoped would stoke demand.
    • These ranged from lower tax rates to a more even tax structure on income from various sources.
    • As the former was less feasible given the fiscal constraints, the budget proposals focused on simplification and providing ease to the taxpayer.
  • Simplification in personal tax: The recalibration of personal income tax slabs was suggested as a step towards simplification.
    • However, its uptake is contingent on the preference for new slabs.
    • Who will not opt for a new slab? Switching over to the new slab rates is not beneficial to-
    • An individual currently claiming full exemptions.
    • An individual with incomes comprising largely of capital gains.
    • It is possible, however, that individuals do not claim such exemptions or deductions.
  • How switching to new slab impact revenue? An analysis of data published by the Central Board of Direct Taxes suggests that for the assessment year 2018-19, it suggest improvement in the collection.
    • 1% improvement: If individuals do switch over to the new regime, it may translate to a 1 per cent improvement in tax collections, rather than a loss.
  • Limited takers of the new slab: It can be inferred that this option may be exercised by few individuals, if at all, since the potential gains from foregoing exemptions and the intended simplification is expected to be limited.

Tax disputes

  • The new scheme proposed: A common concern among taxpayers is protracted disputes. To reduce litigation, a new scheme has been proposed.
  • Importance of precedence in disputes: 39 per cent of the cases made a reference to a similar case in the previous year. This underscores the importance of precedence.
  • In such cases, the settlement is not a superior option as the waiver of the penalty and interest does not offer any advantage against a decision that would impact future assessment.
  • Success rates of disputes: The success rate of the tax department is 27 per cent at the Income Tax Appellate Tribunal (ITAT) and the Supreme Court and 12 per cent in appeals filed in high courts.
    • Given the odds of success, an assessee may thus be tempted to pursue litigation.
  • Incentivising the settlement: Taxpayers may choose to settle for the waiver of interest and penalty in cases where it is one time and does not set a precedent for future transactions.

Dividend Distribution Tax (DDT)

  • What is DDT?  It is one of the significant change is in the taxation of dividends.
    • The dividend distribution tax is a unique levy on distributed profits and is payable by the distributing company.
    • What is the shortcoming in DDT? The shortcoming of such tax is that foreign investors can’t claim the credit.
    • Additional 10 % of DDT: In an effort to make the tax progressive, an additional dividend tax of 10 per cent was introduced for domestic investors receiving dividend in excess of Rs 10 lakh.
  • Dividend pay-out decreased after DDT: Changes in DDT were accompanied by a decline in dividend pay-out – the proportion of profits paid as dividends declined from 30 per cent in early 2000s to 22 per cent in 2019 (BSE 500 companies).
    • Chance of improvement in pay-outs: It is expected that the reversion to the classical system may improve dividends pay-outs.
    • However, this will benefit individual taxpayers with incomes below Rs 5 lakh as the slab rate applicable is less than the existing rate.

Taxing cross-border income

  • In the international arena, India is determined to tax cross-border incomes.
  • Taxing digital companies: The addition of explanation 3A to the Income Tax Act reinforces India’s commitment to taxing digital companies.
  • What comprises the business with nexus to India: The proposed amendment clarifies that incomes related to the advertisement, sale of data of a person residing in India and sale of goods and services based on the data of a person residing in India, may be attributed to a business with nexus in India.
  • Taxing citizen not taxable anywhere: To tax Indian citizens that are not taxable in any other jurisdiction, the Act will now deem such individuals as resident taxable in India.
    • While the application of the law may be challenged giving rise to disputes, it is a step forward.

The proposal of Citizen’s charter

  • Charter on rights and obligations: The finance minister also referred to introducing a citizen’s charter that incorporates taxpayer’s rights and obligations.
    • Limits of charters: International experience shows that charters have limited enforceability unless adopted in primary legislation.
  • Supporting charters with legislation: Introducing charter to the statutes may, therefore, prove to be a positive initiative.
    • Faith can be built through enforcement of the charter.
    • However, the penal provisions must be well-thought-out so as to avoid adding another contentious element.

Conclusion

  • Lack of uniformity: The budget proposals aimed to provide simplicity, yet much remains to be done, given the lack of uniformity in the taxation of incomes such as capital gains.
  • Limited revenue implications: The success of schemes proposed is contingent on the traction they gain. As for the revenue implications, the impact of these measures may, in fact, be limited.
  • Countering loss through gains from settlements: Loss expected from lower tax rates may be countered by gains from the settlement of cases, higher dividend taxes on top incomes, and the wider scope for taxing international incomes.

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Aadhaar Card Issues

Aadhaar, no standout performer in welfare delivery

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Aadhaar- how it has fared so far?

Context

Aadhaar-based biometric authentication did not reduce PDS leakages, finds Jharkhand-based empirical study

What was the rationale behind Aadhaar?

  • What did the UIDAI’s report say? Aadhaar has curtailed leakages of government subsidies. Through Aadhaar, savings worth ₹90,000 crores have accrued to the government– UIDAI’s2017-18 annual report.
  • Plugging the leakages in the schemes: When Aadhaar was conceived a decade ago, the rationale postulated was: India spends nearly three trillion rupees a year across several core welfare programmes such as Public Distribution System (PDS), LPG, Mahatma Gandhi National Rural Employment Guarantee Act etc.
    • Huge leakage due to duplications: Roughly 30-40% of this three trillion is lost in leakages.
    • Leakages are largely due to ‘ghost’ and ‘duplicate’ beneficiaries using fake identities to avail these benefits; a unique identity biometric scheme can eliminate these leakages and vastly improve efficiency in welfare delivery.
  • Improve welfare delivery efficiency: In fact, the former Union Minister, Arun Jaitley, even renamed the Aadhaar Bill to ‘Targeted Delivery of Financial and other Subsidies, Benefits and Services’ Bill, making it amply clear that Aadhaar’s primary, if not sole purpose, was to improve welfare delivery efficiency.

What are the findings of study?

  • How was the study carried out?
    • Use of RCT and sample of 15 million people: They conducted a scientifically designed study of the PDS system in Jharkhand covering 15 million beneficiaries using the technique of randomised control trials (RCT).
    • In the study, one set of beneficiaries went through the Aadhaar-based biometric authentication while the other group used the old system of procuring their ration.
  • The results were then compared to see if Aadhaar-based biometric authentication had any impact in reducing leakages.
  • What were the findings of the study?
  • No measurable benefit: The study concluded that Aadhaar-based biometric authentication had no measurable benefit.
    • No reduction in leakages: Aadhaar-based biometric authentication did not reduce leakages due to elimination of ghosts and duplicates, as widely perceived.
  • Increase in transaction costs for beneficiary: On the other hand, they found that Aadhaar-based biometric authentication increased transaction costs for beneficiaries.
    • 17% extra cost: That is, to claim ration worth ₹40, beneficiaries in the Aadhaar system incurred an additional ₹7 of costs than those in the old system, because of multiple trips to authenticate themselves and the opportunity cost of time spent.
    • This is a whopping 17% extra cost burden of the value of the benefit they were entitled to receive.
  • Type 1 error of exclusion: To make matters worse, Aadhaar-based biometric authentication also introduced what empirical scientists call Type I error of exclusion.
    • Aadhaar authentication falsely rejected genuine PDS beneficiaries who were then denied their ration supplies.
    • The study finds that nearly 10% of legitimate beneficiaries were denied their ration either because they did not have their Aadhaar linked to their ration card or due to an exclusion error.
  • Summary of the finding: In summary, the study states that there was-
    • No direct impact of Aadhaar in reducing leakages.
    • 2. It denied ration to 10% of genuine beneficiaries and increased costs by 17% to those that were forced to get their ration using Aadhaar.
    • Pain with no gain: They conclude that Aadhaar authentication for PDS in Jharkhand caused “some pain with no gain”.

What premises were wrong about Addhaar?

  • No testing of empirical belief: There was a widespread belief among the policy elite that ghosts and duplicates were the scourge of India’s welfare delivery and that Aadhaar would eliminate this.
    • But this belief was never empirically tested.
    • Based on this belief, an entire story was concocted about improving welfare efficiency by eliminating ghosts and duplicates with Aadhaar and a whole new law was enacted to this effect.
  • The pilot project not carried out: Many studies now establish that ghosts and duplicates are not the significant cause of leakages.
    • It would have been better to have undertaken a robust pilot project of scale to test the belief about ghosts and duplicates, before embarking on it nationwide.

Conclusion

In a sociologist’s world and in a liberal society, a policy that could run the risk of denying welfare to just a few people, putting their lives at risk, is not worth implementing regardless of how many millions it benefits.

 

 

 

 

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

Explained: Central Consumer Protection Authority (CCPA)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Terms of References for the office of CCPA

Mains level: CCPA, New Consumer Protection Laws, 2019

 

 

Recently the Union Ministry of Consumer Affairs has announced that a Central Consumer Protection Authority (CCPA) will be established by the first week of April.

What is the Central Consumer Protection Authority?

  • The authority is being constituted under Section 10(1) of The Consumer Protection Act, 2019.
  • The Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns.
  • The CCPA, introduced in the new Act, aims to protect the rights of the consumer by cracking down on unfair trade practices, and false and misleading advertisements that are detrimental to the interests of the public and consumers.

Why need CCPA?

  • The new Act recognizes offences such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements.
  • It also specifies action to be taken if goods and services are found “dangerous, hazardous or unsafe”.
  • The CCPA will have the powers to inquire or investigate into matters relating to violations of consumer rights or unfair trade practices suo motu, or on a complaint received, or on a direction from the central government.

What can the possible structure of CCPA be?

  • The proposed authority will be a lean body with a Chief Commissioner as head, and only two other commissioners as members — one of whom will deal with matters relating to goods while the other will look into cases relating to services.
  • It will be headquartered in the NCR of Delhi but the central government may set up regional offices in other parts of the country.
  • The CCPA will have an Investigation Wing that will be headed by a Director General.
  • District Collectors too, will have the power to investigate complaints of violations of consumer rights, unfair trade practices, and false or misleading advertisements.

What kind of goods and food items in particular, can be classified as “dangerous, hazardous or unsafe”?

  • This is not specified in the notification of the Act.
  • Regarding food, an official said the CCPA will ensure that all standards on packaged food items set by regulators such as the FSSAI are being followed.

What will the CCPA do if any goods or services are found not meeting these standards?

Under Section 20 of The Consumer Protection Act, the proposed authority will have powers to:

  1. recall goods or withdrawal of services that are “dangerous, hazardous or unsafe;
  2. pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services and
  3. discontinuation of practices which are unfair and prejudicial to consumer’s interest

Penalties:

For manufacture, selling, storage, distribution, or import of adulterated products, the penalties are:

  1. If injury is not caused to a consumer, fine up to Rs 1 lakh with imprisonment up to six months;
  2. If injury is caused, fine up to Rs 3 lakh with imprisonment up to one year;
  3. If grievous hurt is caused, fine up to Rs 5 lakh with imprisonment up to 7 years;
  4. In case of death, fine of Rs 10 lakh or more with a minimum imprisonment of 7 years, extendable to imprisonment for life.

How will it deal with false or misleading advertisements?

  • Section 21 of the new Act defines the powers given to the CCPA to crack down on false or misleading advertisements.
  • The CCPA may order investigation that any advertisement is false or misleading and is harmful to the interest of any consumer, or is in contravention of consumer rights.
  • If dissatisfied, the CCPA may issue directions to the trader, manufacturer, endorser, advertiser, or publisher to discontinue such an advertisement, or modify it in a manner specified by the authority, within a given time.

Penalties:

  1. The authority may also impose a penalty up to Rs 10 lakh, with imprisonment up to two years, on the manufacturer or endorser of false and misleading advertisements.
  2. The penalty may go up to Rs 50 lakh, with imprisonment up to five years, for every subsequent offence committed by the same manufacturer or endorser.
  3. CCPA may ban the endorser of a false or misleading advertisement from making endorsement of any products or services in the future, for a period that may extend to one year.
  4. The ban may extend up to three years in every subsequent violation of the Act.

What other powers will the CCPA have?

  • While conducting an investigation after preliminary inquiry, officers of the CCPA’s Investigation Wing will have the powers to enter any premise and search for any document or article, and to seize these.
  • For search and seizure, the CCPA will have similar powers given under the provisions of The Code of Criminal Procedure, 1973.
  • The CCPA can file complaints of violation of consumer rights or unfair trade practices before the District, State, and the National Consumer Disputes Redressal Commission.
  • It will issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services.

Also read:

Five new rights you get as a consumer

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International Space Agencies – Missions and Discoveries

2020 CD3: A mini-moon

Note4Students

From UPSC perspective, the following things are important :

Prelims level: 2020 CD3, Temporarily Captured Object (TCO)

Mains level: Not Much

 

 

Astronomers have observed a small object orbiting Earth, which they have dubbed a “mini-moon” or the planet’s “second moon”.

2020 CD3

  • The mini-moon was discovered by some astronomers at NASA-funded Catalina Sky Survey (CSS) in Arizona.
  • It is actually an asteroid, about the size of a car; its diameter is about 1.9-3.5 m.
  • And unlike our permanent Moon, the mini-moon is temporary; it will eventually break free of Earth’s orbit and go off on its own way.
  • Orbit integrations indicate that this object is temporarily bound to the Earth.
  • 2020 CD3 was captured into Earth’s orbit over three years ago.
  • For CSS, it is only the second such discovery. It previously discovered 2006 RH120, which orbited Earth for some time that year, before it escaped in 2007.

Where do such moons come from?

  • When an asteroid’s orbit crosses Earth’s orbit, it can sometimes be captured into the latter orbit. This is what happened with 2020 CD3.
  • It is now orbiting at a distance farther from Earth. Such an asteroid is called a Temporarily Captured Object (TCO).
  • The orbit of such objects is unstable. They have to contend with the gravitational influence of our permanent Moon as well as that of the Sun.
  • Once caught in Earth’s orbit, such objects usually remain for a few years before they break free and go into independent orbit around the Sun.

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