💥UPSC 2027,2028 Mentorship (May Batch) + Access XFactor Notes & Microthemes PDF
Talk to mentor

Civilsdaily

Login

Archives: News

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

    Bioluminescence observed at Visakhapatnam beach

    Prelims Only | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    bio

    The blooms of Noctiluca Scintillans, commonly known as “sea sparkle or bioluminescence” are being witnessed along the coasts of Visakhapatnam, AP.

    Noctiluca Scintillans

    • Scintillans is a bioluminescent specie that brightens the seawater during the night.
    • It grazes on other micro-organisms such as larvae, fish eggs, and diatoms. But the unicellular phytoplankton that lives inside it can photosynthesize, turning sunlight into energy.
    • They help their host cell survive even when food was scarce.
    • Thus, N. Scintillans acts as both a plant and an animal

    Threats posed

    • According to marine experts, the phenomenon is an indicator of climate change.
    • While smaller blooms may be harmless, slow-moving larger blooms may have an impact on deep-sea fishes.
    • The toxic blooms of N. Scintillans were linked to massive fish and marine invertebrate kills.
    • Though the species does not produce a toxin, it was found to accumulate toxic levels of ammonia, which is then excreted into the surrounding waters, possibly acting as the killing agent in blooms.
    • They have displaced microscopic algae called diatoms, which form the basis of the marine food chain. This has deprived food for the planktivorous fish.

    Back2Basics: Bioluminescence

    • It is the property of a living organism to produce and emit light.
    • Animals, plants, fungi and bacteria show bioluminescence. A remarkable diversity of marine animals and microbes are able to produce their own light.
    • It is found in many marine organisms such as bacteria, algae, jellyfish, worms, crustaceans, sea stars, fish and sharks.
    • Luminescence is generally higher in deep-living and planktonic organisms than in shallow species.

     

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

  • GI(Geographical Indicator) Tags

    Madhya Pradesh’s Gond Painting gets GI Tag

    Prelims Only | History | Mains Paper 1: Arts & Culture

    gond

    The Gond painting of Madhya Pradesh has received the prestigious Geographical Indication (GI) tag.

    Other recent GI tags awarded in UP

    10 products from UP got GI Tag on March 31:

    • Aligarh Tala
    • Bakharia Brassware
    • Banda Shazar Patthar Craft
    • Pratapgarh Aonla (Amla)
    • Ramnagar Bhanta (Brinjal)
    • Muzaffarnagar Gur (jaggery)
    • Banarasi Pan
    • Nagina Wood Craft
    • Hathras Hing
    • Banaras Langda Aam

     

    Gond Art

    • Gond painting is a traditional art of Madhya Pradesh and belongs to the Gond tribe.
    • Patangarh village of Dindori district is famous for Gond paintings, where there is an artist in every house.
    • Their work is famous in the state and abroad for its unique style, theme, and motifs.
    • Gond art has been passed down through generations, traditionally adorning the walls of each artist’s home in Patangarh.

    Features of Gond Painting

    • Gond paintings showcase the beauty of nature, including trees, plants, animals, the moon, sun, river, drains, God, and Goddesses.
    • The paintings also portray daily life activities such as food, plough making, and even how the king used to fight.

    Back2Basics: Geographical Indication (GI)

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.

     

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

  • Modern Indian History-Events and Personalities

    India’s Philosophy Stand Out As A Beacon To The World

    op-ed snap | Indian Society | Mains Paper 1: Salient features of Indian Society

    Philosophy

    Central Idea

    • The philosophical underpinnings of India’s civilization are unique and powerful, and they empower India to withstand waves of invasions, natural calamities, and societal challenges. India’s worldview and approach towards human life make India stand out as a beacon to the world. However, many Indians remain ignorant of their own philosophical heritage, and building on these foundational values can serve as building blocks for India’s soft power.

    The Fundamentals of Indian Philosophy

    • Indian philosophy cannot be ascribed to any particular scripture.
    • The fundamentals of the perceived philosophy of India have come from many scriptures, and the Indian approach is to let a thousand flowers bloom.

    The Five Tenets that Make India Stand Out

    India’s philosophy has at least five fundamental tenets that make it stand out: 1. Spiritual democracy, 2. Unity in diversity, 3. Confluence with nature, 4, antyodaya, and 5. vasudhaiva kutumbakam. These tenets reflect the teachings of sages and philosophers such as Gautama Buddha, Adi Shankara, and Guru Nanak.

    1. Spiritual Democracy: India rejects any monopolistic approach to ways of worship, and it welcomes diversity in ways of worship. This approach reflects the fundamental unity of all that exists, and sages call it by various names.
    2. Unity in Diversity: India’s unity is inherent in its diversity, and this diversity is our innate unity that manifests in myriad ways. India not only accommodates but also celebrates the pervasive diversity.
    3. Confluence with Nature: India does not aspire to conquer nature, but instead, it has a tradition of sincere and deepest gratitude towards nature. Many Indian traditions and rituals reflect this approach, and sustainability is a part of our philosophy of human life.
    4. Antyodaya: India’s unique concept of antyodaya puts the last man first. The most deprived are the most deserving when it comes to the distribution of the fruits of development. Antyodaya encompasses both social and economic justice and takes us beyond the binary of capitalism and socialism.
    5. Vasudhaiva Kutumbakam: India has imagined the entire world as one family, where values like mutuality, sharing, and collectivism are given primacy. This approach nips in the bud all the uncalled-for apprehensions about ultra-nationalistic or jingoistic approaches.

    India’s Philosophical Heritage Can Build on Its Soft Power

    • India can build on its unique philosophical heritage, which can serve as building blocks of India’s soft power.
    • India’s foundational values are needed now more than ever, as the global community faces conflicts and wars emanating from weird ideas of supremacy, oneupmanship, and monopolistic spirituality.

    Conclusion

    • India’s philosophy and approach towards human life and worldly concerns are unique and powerful, and they make India stand out as a beacon to the world. India’s soft power can build on its unique philosophical heritage, and India can use this to assert itself even in the most complex and unpredictable future. The key challenge is to establish that India is capable of walking the talk and using its philosophy to deal with societal challenges. Indian philosophy empowers us to handle the contemporary challenges, and it has gained India huge goodwill among the global community.

    Mains Question

    Q. India’s philosophy and approach towards human life and worldly concerns are unique and powerful, and they make India stand out as a beacon to the world. Discuss

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

  • Police Reforms – SC directives, NPC, other committees reports

    Supreme Court rulings on Encounters

    | Governance | Mains Paper 2: Civil Service

    encounter

    Central idea: A gangster-turned-politician son and his aide were killed in an encounter in UP.

    Why discuss this?

    • The National Human Rights Commission (NHRC) and the Supreme Court have laid down proper guidelines and procedures to be followed to prevent any misuse of power by the law enforcement agencies.
    • However, this encounter has brought to the forefront the issue of extra-judicial killings or “encounters” by the police in India.

    Supreme Court Guidelines on Encounters

    • In September 2014, a bench of then CJI RM Lodha and Rohinton Fali Nariman issued detailed guidelines.
    • These guidelines came in the case “People’s Union for Civil Liberties v State of Maharashtra”.
    • The guidelines enumerated 16 points to be followed in the matters of investigating police encounters in the cases of death as the standard procedure for a thorough, effective and independent investigation-
    1. Registration of a first information report (FIR) as mandatory
    2. Magisterial inquiry
    3. Keeping written records of intelligence inputs
    4. Independent investigation by bodies such as the CID
    5. A Magisterial Inquiry must invariably be held in all cases of death which occur in the course of police action
    6. Next of kin of the deceased must invariably be associated in such inquiry
    7. In every case when a complaint is made against the police alleging commission of a criminal act on their part, which makes out a cognizable case of culpable homicide, an FIR to this effect must be registered under appropriate sections of the IPC
    8. Such an inquiry made under Section 176 of the Code of Criminal Procedure, 1973, must show “whether use of force was justified and action taken was lawful.”
    9. Whenever the police receives any intelligence or tip-off on criminal movements or activities relating to the commission of grave criminal offence, “it shall be reduced into writing in some form (preferably into case diary) or in some electronic form.”
    10. Following such tip-off or intelligence, if an encounter takes place and a firearm is used by the police party, resulting in death, then an FIR to that effect has to be registered and forwarded to the court under Section 157 without delay.
    11. Provisions for an independent investigation into the encounter
    12. The requirements/norms must be strictly observed in all cases of death and grievous injury in police encounters by treating them as law declared under Article 141 of Indian Constitution.
    13. The law declared by the Supreme Court shall be binding on all other courts in Indian Territory.
    14. NHRC’s involvement is not necessary, “unless there is serious doubt about independent and impartial investigation.”
    15. The information about the incident must be sent to NHRC or the State Human Rights Commission.

    NHRC Guidelines on Encounters

    • The National Human Rights Commission (NHRC) has asked all states and Union Territories to ensure that police follow a set of guidelines in cases where death is caused in police encounters.
    • These included the police’s duty to enter all information received about encounter deaths in an “appropriate register” and provisions for investigation by independent agencies like the State CID.

    Issues with such encounters

    • Defies rule of law: This practice undermines the rule of law and due process, and violates the right to life and other human rights.
    • Use of force: There have been allegations of police and security forces using excessive force.
    • Fake encounters: There have been instances of staging encounters, and conducting fake encounters to eliminate suspects without following the due legal process.
    • Autocracy: These incidents have raised concerns about impunity, lack of accountability, and the need for reforms to ensure that law enforcement officials are held accountable for their actions.
    • Distrust among the public: Public often tend to lose belief among the constitutional process of justice.

    Why are such encounters popular among public?

    • Lack of trust in the legal system: Some people may view extrajudicial killings and encounters as a way of bypassing the legal system which they may view as corrupt or inefficient.
    • Perception of safety: There may be a belief among some members of the public that such encounters can help to deter criminals and make their communities safer.
    • Frustration with the slow pace of justice: The Indian legal system can be slow and protracted, and some people may view extrajudicial killings and encounters as a way to expedite the process of justice.
    • Lack of awareness about human rights: Some people may not be aware of the human rights implications of such encounters, or may view them as a necessary means to an end.

    Conclusion

    • It is important to note, however, that extrajudicial killings and encounters are illegal, undermine the rule of law, and violate human rights.
    • They also carry the risk of abuse, and can result in innocent people being targeted or killed.
    • Therefore, such practices cannot be justified or condoned in a democratic and law-abiding society.

    Back2Basics: National Human Rights Commission

    • NHRC is an independent statutory body established in India on 12 October 1993 under the Protection of Human Rights Act, 1993.
    • It is responsible for the protection and promotion of human rights, and prevention of their violations.
    • It is empowered to investigate complaints of human rights violations and recommend appropriate remedial measures.
    • It also monitors the human rights situation in the country, undertakes research and advocacy, and conducts various educational and awareness programs to promote human rights awareness and sensitivity among various sections of society.

     

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

  • Modern Indian History-Events and Personalities

    Dr. B.R. Ambedkar’s Vision Continues to Inspire Present Day Governance

    op-ed snap | | Mains Paper 1: Post-Independence

    B.R. Ambedkar

    Central idea

    • The 132nd birth anniversary of B.R. Ambedkar is an occasion to recognize his ideas and actions which continue to inspire and guide the present and future generations.

    B.R. Ambedkar’s Legacy

    • R. Ambedkar was more than an individual, and his ideas and actions continue to illuminate the present and are a guiding light for the future.
    • He epitomised the spirit of justice and stressed establishing institutions for a just society.

    Ambedkar’s contribution to nation-building

    • Multidimensional contribution: The centenary of Ambedkar’s work, The Problem of Rupee: Its Origin and its Solution, paved the foundation of the Reserve Bank of India in 1934. During that time, the country was trying to come out of the clutches of colonialism, and Ambedkar vigorously advocated for significant nation-building measures in a multidimensional manner.
    • Tirelessly work to safeguarding the interests of the people: From his work on the Simon Commission to representing the Depressed Classes in the Round Table conferences and chairing the Constitution’s drafting committee, Ambedkar tirelessly worked towards safeguarding the interests of the people.

    Quick knowledge box from civilsdaily: Dr. B.R. Ambedkar’s literary work

    Literary Works

    Description
    Castes in India: Their Mechanism, Genesis and Development A paper presented by Ambedkar to an anthropology seminar at Columbia University, which discusses the caste system in India and its origins
    The Problem of the Rupee: Its Origin and Its Solution A work that proposed a solution to the problem of currency fluctuations in India and paved the way for the establishment of the Reserve Bank of India
    Annihilation of Caste A speech delivered by Ambedkar that strongly criticized the caste system in Hindu society and advocated for its annihilation
    What Congress and Gandhi Have Done to the Untouchables A book that criticized the Indian National Congress and Mahatma Gandhi for their treatment of the untouchables in India
    States and Minorities A book that analyzes the relationship between the majority and minority communities in India and argues for the protection of minority rights
    The Untouchables: Who Were They and Why They Became Untouchables? A book that traces the history of the untouchables in India and argues for their social and economic upliftment
    Buddha and His Dhamma A book that describes the life and teachings of the Buddha and how they can be applied to contemporary society
    Who Were the Shudras? A book that examines the origins and history of the Shudra caste in Hindu society

    Present government’s commitment to Ambedkar’s vision

    • Ambedkar’s vision in planning and implementation: The present-day government led by PM Modi has been committed to adhering to Ambedkar’s vision from planning to implementation.
    • People-centric policy measures: The government has taken steps towards the ease of life of citizens, such as the implementation of pro-poor and people-centric policy measures.
    • For instance: Schemes such as Stand-Up India, Start-Up India, PM Awas Scheme, BHIM, Mudra, and JAM trinity, which show that the government is leaving no stone unturned to fulfill the assigned targets and ensure saturation-level implementation.
    • Government’s efforts to preserve Ambedkar’s legacy: Government’s has adopted a sensitive approach towards preserving Ambedkar’s legacy. The National Research for Conservation of Cultural Property has preserved Ambedkar’s belongings for posterity, which will be showcased at the upcoming Dr B R Ambedkar Socio-Economic & Culture Centre. The Centre will serve as a sacred place highlighting glimpses of Ambedkar’s contribution to building the nation.

    Ambedkar’s relevance to present-day India

    • Panch Pran mantra: There are parallels between Ambedkar’s ideas and the Prime Minister’s Panch Pran mantra for making a developed India.
    • Azadi Ka Amrit Mahotsav: Ambedkar believed that the constitutional ideals and social philosophy of liberty, equality, and fraternity have Indian cultural roots, and the government’s initiatives, such as Azadi Ka Amrit Mahotsav, reflect this belief.

    Conclusion

    • India’s commitment to Ambedkar’s vision would have resulted in greater public welfare if earlier governments had accepted him in this manner. On Ambedkar’s 132nd birth anniversary, it is essential to recognize his legacy and commitment to establishing institutions for a just society. The legacy of B.R. Ambedkar is a guiding light for India, and his ideas and actions continue to inspire and provide a moral force for justice.

    Mains Question

    Q. Discuss the relevance of B.R. Ambedkar’s ideas to present-day India. How has the present government committed to adhering to Ambedkar’s vision in planning and implementation of policies?

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

  • Capital Markets: Challenges and Developments

    Dabba Trading and its impact on the Economy

    Prelims Only | Economics | Mains Paper 3: Investment Models

    dabba

    Central idea

    • The National Stock Exchange (NSE) has issued a series of notices warning retail investors about entities involved in ‘dabba trading’.
    • The NSE cautioned investors not to subscribe or invest using these products offering indicative, assured or guaranteed returns in the stock market as they are prohibited by law.
    • The entities involved in dabba trading are not recognized as authorized members by the exchange.

    What is Dabba Trading?

    • Dabba (Box) trading refers to informal trading that takes place outside the purview of the stock exchanges.
    • It involves betting on stock price movements without incurring a real transaction to take physical ownership of a particular stock as is done in an exchange.
    • In simple words, it is gambling centred around stock price movements.

    How does it work?

    • In dabba trading, investors place bets on stock price movements at a certain price point.
    • If the price point rises, they make a gain, and if it falls, they have to pay the difference to the dabba broker.
    • The broker’s profit from the investor’s loss, and vice versa.
    • Transactions are facilitated using cash and unrecognised software terminals or informal records, which helps traders stay outside the regulatory mechanism.

    What are the problems with dabba trading?

    • Since dabba traders do not maintain proper records of income or gain, they are able to escape taxation, which results in a loss to the government exchequer.
    • The use of cash also means that they are outside the purview of the formal banking system.
    • Investors in dabba trading do not have formal provisions for investor protection or grievance redressal mechanisms available within an exchange, which exposes them to the risk of broker defaults or insolvency.
    • Dabba trading also perpetuates a parallel economy, potentially encouraging the growth of black money and criminal activities.

    What is the current scenario?

    • Industry observers have reported that dabba brokers harass clients for default payments and refuse payments upon profit.
    • Potential investors are lured by aggressive marketing, ease of trading using apps with quality interfaces, and lack of identity verification.
    • Brokers keep their fees and margins open to negotiation depending on an individual’s trading profile.
    • The mechanism could potentially induce volatility and cause losses for the regulated bourse when dabba brokers look to hedge their exposures.

    What are the legal implications?

    • Dabba trading is recognised as an offence under Section 23(1) of the Securities Contracts (Regulation) Act (SCRA), 1956.
    • Upon conviction, it can invite imprisonment for a term extending up to 10 years or a fine up to ₹25 crore, or both.

     

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

  • Microfinance Story of India

    What is MUDRA Scheme?

    Prelims Only | Economics | Mains Paper 3: issues relating to planning, mobilization of resources

    mudra

    PM hit out at people ridiculing the Pradhan Mantri Mudra Yojana (PMMY) and said those who gave loans to big businessmen “over phone” never understood the power of microfinance.

    MUDRA Scheme

    • MUDRA (Micro Units Development and Refinance Agency) Scheme is a financial initiative launched by the Government of India in April 2015 to provide financial support to micro-enterprises in India.
    • The scheme is designed to cater to the financial needs of the non-corporate, non-farm sector enterprises in the country.
    • The objective of the scheme is to promote entrepreneurship, employment generation, and to provide access to finance to small and micro-businesses in India.

    Range of loans

    • The MUDRA scheme provides loans ranging from Rs. 50,000 to Rs. 10 lakhs to small and micro-businesses.
    • These loans are provided through various financial institutions such as banks, microfinance institutions, and non-banking financial companies (NBFCs).
    • The scheme also offers refinance support to these institutions.
    Category Loan Amount
    Shishu Up to Rs. 50,000
    Kishore Rs. 50,001 to Rs. 5 lakhs
    Tarun Rs. 5 lakhs to Rs. 10 lakhs

    Key features of the MUDRA scheme

    • Refinance support: The scheme offers refinance support to various financial institutions, such as banks, microfinance institutions, and non-banking financial companies (NBFCs), to provide loans to small and micro-businesses.
    • Employment generation: The scheme aims to promote entrepreneurship and employment generation in the country.
    • Digitalization of financial transactions: The scheme has helped in promoting the digitalization of financial transactions.
    • Focus on underprivileged and marginalized sections: The scheme aims to provide financial assistance to underprivileged and marginalized sections of the society, especially those belonging to the non-corporate, non-farm sector enterprises in the country.
    • Simplified loan processing: The loan processing under the scheme is simplified and requires minimal documentation.
    • No collateral requirement: The loans provided under the scheme do not require any collateral or security.
    • Competitive Interest rate: The interest rate for the loans provided under the scheme is competitive and affordable.

     

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

  • Historical and Archaeological Findings in News

    Uthirameur Inscription: Ancient Tamil proof of Democratic Provisions

    Prelims Only | | Mains Paper 1: Modern Indian History

    uthirameur

    PM Modi referred to an over 1,100-year-old inscription found in Uthirameur, Tamil Nadu, which talks about rules for a local body, including provisions for disqualifying a member.

    What are Uthiramerur inscriptions?

    • Uthiramerur inscriptions are a set of ancient Tamil inscriptions found in Uthiramerur, a town in the Kanchipuram district of Tamil Nadu.
    • These inscriptions date back to the 10th century CE and were created during the reign of the Chola dynasty, which ruled over a large part of South India.
    • It was crafted under the rule of Parantaka Chola I (907 – 956 AD.)

    What does the inscription say?

    The temple inscriptions of Uthiramerur provide historical descriptions of rural self-governance.

    (1) Sabha and Ur

    • Uthiramerur had two village assemblies: Gram Sabha and Ur.
    • Sabha was exclusively a Brahmin assembly, while the Ur was made up of people belonging to all classes.
    • Sabha managed land sales, endowment fund for dredging a tank, and assigned duties to the Ur for managing deserted land.
    • Sabha assembled in the hall of the local temple and was summoned through beating of the drums.
    • The inscriptions contained references to variyars, the executive officers subordinate to the Sabha.

    (2) Administrative System

    • The executive powers were given to committees called Variyams during the Chola king Parantaka I’s reign (907–955).
    • Each variyam constituted 6 to 12 members, depending on the importance of its functions.
    • The first inscription (dated 919 CE) described the rules for electing committee members.
    • The second inscription (dated 921 CE) described some amendments to these rules to make them more practical.

    (3) Committees and Qualifications

    • The village had 30 kudumbus or wards, from which the members of various committees were selected annually.
    • The inscription lays down the qualifications for a nominee, including ownership of tax-paying land, residence on self-owned land, age between 35 and 70 years, knowledge of mantras and the Brahmanas, and not being associated with certain offenses or activities.
    • The candidates were selected via Kudavoloi (pot of palm leaf tickets) system.
    • The tenure of a committee member was 360 days.
    • Anyone found guilty of an offense was immediately removed from the office.

    (4) Punishments

    • The Uthiramerur inscriptions indicate that parading on a donkey was a punishment for offenses such as incest, adultery, theft, and forgery.

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

  • Foreign Policy Watch: India-Afghanistan

    India signs MoU with World Food Programme for sending wheat to Afghanistan

    IOCR | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    India signed an MoU with the World Food Programme (WFP) to send 10,000 metric tonnes of wheat to Afghanistan.

    Reason: Utilizing WFP supply chain

    • The MoU signed between India and the World Food Programme (WFP) paves the way for sending 10,000 metric tonnes of wheat for the people of Afghanistan.
    • The WFP has a massive supply chain and logistics infrastructure in Afghanistan that could help in ensuring that the food supply reaches those who need it the most and no one is excluded.
    • The MoU also ensures that the assistance is coordinated and delivered in an effective and efficient manner, and that it reaches the most vulnerable sections of the Afghan population.

    What is World Food Programme (WFP)?

    • The WFP is a humanitarian organization that is part of the United Nations system.
    • It was established in 1961 and has its headquarters in Rome, Italy.
    • The WFP is the world’s largest humanitarian agency focused on combating hunger and promoting food security.

    Scope of Operations

    • The WFP operates in more than 80 countries, delivering food assistance to people in need.
    • WFP programs reach over 97 million people each year, including children, pregnant and nursing women, and people affected by emergencies, such as conflict or natural disasters.
    • It provides a range of food assistance, including in-kind food assistance, cash and voucher-based transfers, and specialized nutritious foods.

    Funding and Support

    • The WFP is funded entirely by voluntary contributions from governments, companies, and individuals.
    • The organization works closely with donors to ensure that funding is used effectively and efficiently, and to ensure that it is directed to the areas and programs where it is needed most.

    Governance and Structure

    • The WFP is governed by an Executive Board, which is composed of 36 member states that are elected to three-year terms.
    • The Executive Board provides oversight and strategic direction to the organization, and approves the WFP’s programs and budgets.
    • The WFP is headed by an Executive Director, who is appointed by the Secretary-General of the United Nations.
    • The organization has more than 17,000 staff worldwide, including professionals in fields such as logistics, nutrition, and food security.

    Impact and Achievements

    • Over the years, the WFP has made significant contributions to addressing hunger and promoting food security worldwide.
    • The organization has responded to numerous emergencies, providing food assistance to millions of people affected by conflict, natural disasters, and other crises.
    • The WFP has also supported programs that help people access the food they need to lead healthy, active lives, and that promote sustainable agriculture and development.
    • The WFP has been recognized for its efforts, receiving the Nobel Peace Prize in 2020 in recognition of its contributions to combatting hunger and promoting peace.

     

     

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

  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Inflation in India is Driven by Food Prices

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

    Inflation in India

    Central Idea

    • The recent trajectory of inflation in India is attributed to the pricing power of five big corporates or ‘Big 5’ according to former Deputy Governor of Reserve Bank of India, Viral Acharya. However, the argument is flawed as the Indian inflation is different from the rest of the world, and it is driven by food price inflation. While corporate pricing power does exist, it is limited, and the extent to which it drives overall inflation is still debatable.

    The factor of food price inflation

    1. Divergence between Indian and Western inflation rates is not new:
    • Sudden surge of Inflation in India: After the global financial crisis of 2008, Indian inflation surged higher than the economies of the US and UK due to food price inflation caused by negative agricultural shocks and high procurement price hikes.
    • Core inflation: Food-price inflation tends to feed into core inflation, so it would be hasty to conclude that Indian inflation is higher than the West today due to corporate pricing power.
    • Food price inflation: Evidence suggests that in India, food price inflation affects core inflation, and food price inflation enters costs of the non-agricultural sector.
    1. Corporate pricing power in India:
    • Corporate pricing power and overall inflation: Corporate pricing power exists in Indian industry, but the extent to which it drives overall inflation in India is debatable. The question is how much corporate power is driving inflation beyond its obvious role in elevating the price level.
    • Prices of food: To measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Inflation control strategy: India’s inflation control strategy needs to address the challenge of ensuring the production of food at affordable prices.
    1. Comparing WP inflation with CP inflation
    • Comparing WP inflation with CP inflation is to acquiesce in a mismatch.
    • The commodity basket corresponding to CP includes items that do not enter the wholesale price index, so we would be comparing apples with oranges.

    Inflation in India

    The argument is based on a short time period

    • WP inflation has eased considerably in the six months preceding March 2023, but CP inflation has not. However, a mismatch between WP and CP inflations is not new.
    • So, the maintenance of high price increases by firms in the retail sector even after wholesale price inflation has declined in 2022-23 may just be a compensating mechanism, i.e., the rising input cost of the retail sector is being passed on with a lag.

    Facts for prelims: WP inflation VS CP inflation

    Aspect Wholesale Price (WP) Inflation Consumer Price (CP) Inflation
    Definition Measures the change in average price level of goods sold by producers at the wholesale level Measures the change in average price level of goods and services purchased by households
    Captures Changes in prices of goods before they reach the retail market Changes in prices of goods and services at the retail level
    Indicator of Early indicator of changes in overall price level of economy Inflation that households experience in their day-to-day lives
    Impact Affects production cost and supply chain Affects purchasing power of consumers
    Calculation Based on price changes of goods sold in bulk to retailers or other businesses Based on price changes of goods and services purchased by households
    Usage Used by policymakers to monitor changes in cost of production and production-level inflation Used by policymakers to monitor inflation and make decisions related to monetary policy
    Examples Wholesale prices of raw materials, oil, and other commodities Retail prices of food, clothing, transportation, and other consumer goods and services

    Rising food prices driving current inflation

    • Over 75% of the direct contribution to inflation in the first three quarters of the financial year came from sectors in which the Big 5 are unlikely to be represented in a big way.
    • The contribution of food products alone was close to 50% in most time periods.
    • Rising food prices are driving current inflation in India.

    The current inflation control strategy

    • Considerable rise in food prices: In India, food prices have only risen, and in recent years their rate of inflation has been very high. For all the reforms since 1991, the real price of food, i.e., its price relative to the general price level, has risen considerably.
    • What matters most to public must be considered: In the context, to measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Current strategy restricted to using the interest rate to dampen aggregate demand: India’s inflation control strategy is currently restricted to using the interest rate to dampen aggregate demand. This strategy avoids addressing the challenge of ensuring the production of affordable food.
    • Question mark on RBI’s ability to control inflation: The RBI has been unable to control even the core inflation which central banks are assumed to be able to control. A recent intervention explaining core inflation in India has highlighted the RBI’s inability to control inflation.

    Conclusion

    • Inflation is being discussed only in terms of core inflation, which excludes the inflation in food and fuel prices because these prices tend to fluctuate and even out the changes, so it is assumed that they do not require a policy response. However, this assumption is flawed in the context of India’s economy, as food and fuel prices have a significant impact on the economy and people’s livelihoods. Therefore, limiting the discussion to core inflation ignores the role of corporate pricing power and the impact of food and fuel prices on the economy.

    Mains Question

    Q. What is the factor that primarily drives inflation in India? Highlight the relationship between food price inflation and overall inflation in India?

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

Join the Community

Join us across Social Media platforms.