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Archives: News

  • RBI Notifications

    RBI announces pilot for QR code-based Coin Vending Machine

    qr

    To improve the distribution of coins among members of the public, the Reserve Bank of India (RBI) is preparing a pilot project on QR code-based Coin Vending Machine (QCVM) in collaboration with a few leading banks.

    QR code-based Coin Vending Machine (QCVM)

    • The QCVM is a cashless coin dispensation machine which would dispense coins against a debit to the customer’s bank account using Unified Payments Interface (UPI).
    • Unlike cash-based traditional Coin Vending Machine, the QCVM would eliminate the need for physical tendering of banknotes and their authentication.
    • Customers will also have the option to withdraw coins in the required quantity and denominations in QCVMs.

    When will it be launched?

    • The pilot project is planned to be initially rolled out at 19 locations in 12 cities across the country.
    • Machines will be installed at public places such as railway stations, shopping malls, marketplaces to enhance ease and accessibility.
    • Based on the learnings from the pilot tests, guidelines would be issued to banks to promote better distribution of coins using QCVMs.

     

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  • Tribes in News

    Sarna Religion of the Tribals

    sarna

    West Bengal Assembly has tabled a motion to recognize Sarna Religion of the tribals and have a Sarna Code.

    Sarna Religion

    • The followers of Sarna faith believe pray to nature.
    • The holy grail of the faith is “Jal (water), Jungle (forest), Zameen (land)” and its followers pray to the trees and hills while believing in protecting the forest areas.
    • Jharkhand has 32 tribal groups of which eight are from Particularly Vulnerable Tribal Groups.
    • While many follow Hindu religion, some have converted to Christianity — this has become one of the planks of demanding a separate code “to save religious identity”— as various tribal organisations put it.

    Demand for Sarna Code

    • Tribal groups in the region have long demanded the Sarna code, a separate religious classification in the census, recognising their status as independent religious communities.
    • It is believed that 50 lakhs tribal in the entire country put their religion as ‘Sarna’ in the 2011 census, although it was not a code.
    • The resolution will seek a special column for followers of the Sarna religion in the Census, 2021.
    • At present, they are not classified as a separate entity.

    Politics around the tribe

    • Many of the tribals who follow this faith have later converted to Christianity—the state has more than 4% Christians most of whom are tribals.
    • Some who still follow the Sarna faith believe the converted tribals are taking the benefits of reservation as a minority, as well as the benefits, are given to Schedule Tribes.
    • They also believe that benefits should be given specifically to them and not to those who have converted.

    What sense does a separate code make?

    • The protection of their language and history is an important aspect of tribals.
    • Between 1871 and 1951, the tribals had a different code. However, it was changed around 1961-62.
    • Experts argue that when today the entire world is focusing on reducing pollution and protecting the environment, it is prudent that Sarna becomes a religious code as the soul of this religion is to protect nature and the environment.

     

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  • Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

    Existing income limit for OBCs Non-Creamy Layer is ‘sufficient’: Centre

    obc

    The existing income limit for determining the non-creamy layer (NCL) among Other Backward Classes (OBC) is considered sufficient and hence there is no proposal currently to revise the said income limit, informed the Centre.

    What is Non-Creamy Layer in OBCs?

    • Creamy Layer is a concept that sets a threshold within which OBC reservation benefits are applicable.
    • While there is a 27% quota for OBCs in government jobs and higher educational institutions, those falling within the “creamy layer” cannot get the benefits of this quota.

    Basis of Creamy Layer

    • It is based on the recommendation of the Second Backward Classes Commission (Mandal Commission).
    • The government in 1990 had notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) in vacancies in civil posts and services that are to be filled on direct recruitment.
    • After this was challenged, the Supreme Court in the Indira Sawhney case (1992) upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.

    How is it determined?

    • Following the order in Indra Sawhney, an expert committee headed by Justice (retired) R N Prasad was constituted for fixing the criteria for determining the creamy layer.
    • In 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail the benefit of OBC reservation.
    1. For those not in government, the current threshold is an income of Rs 8 lakh per year.
    2. For children of government employees, the threshold is based on their parents’ rank and not income.
    3. For instance, an individual is considered to fall within the creamy layer if either of his or her parents is in a constitutional post; if either parent has been directly recruited in Group-A; or if both parents are in Group-B services.
    4. If the parents enter Group-A through promotion before the age of 40, their children will be in the creamy layer.
    5. Children of a Colonel or higher-ranked officer in the Army, and children of officers of similar ranks in the Navy and Air Force, too, come under the creamy layer.
    6. Income from salaries or agricultural land is not clubbed while determining the creamy layer (2004).

    What is happening now?

    • Many communities have raised questions about the pending proposal for revising the criteria.
    • They have asked whether the provision of a creamy layer for government services only for OBC candidates is rational and justified.
    • The National Commission for Backward Classes (NCBC) has consistently maintained from as early as 2011 that the income limit should be raised to at least ₹10 lakh.

    Has it ever been revised?

    • Other than the income limit, the current definition of the creamy layer remains the same as the DoPT had spelled out in 1993 and 2004.
    • The income limit has been revised over the years.
    • No other orders for the definition of the creamy layer have been issued.
    • While the DoPT had stipulated that it would be revised every three years, the first revision since 1993 (Rs 1 lakh per year) happened only in 2004 (Rs 2.50 lakh), 2008 (Rs 4.50 lakh), 2013 (Rs 6 lakh), and 2017 (Rs 8 lakh).
    • It is now more than five years since the last revision.

    What is the current NCL limit?

    • Currently, an annual income of both parents of ₹8 lakh or more excludes OBCs from availing reservation.
    • It puts them in the creamy layer category, leaving benefits only for those earning less than that.

     

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  • Innovations in Biotechnology and Medical Sciences

    CAR T-Cell Therapy for treatment of Cancer

    cancer

    The new CAR T-Cell Immunotherapy holds promise for Ovarian Cancer patients over other forms of treatment.

    What are CAR T-cells?

    • Chimeric antigen receptor (CAR) T-cell therapies represent a quantum leap in the sophistication of cancer treatment.
    • Unlike chemotherapy or immunotherapy, which require mass-produced injectable or oral medication, CAR T-cell therapies use a patient’s own cells.
    • They are modified in the laboratory to activate T-cells, a component of immune cells, to attack tumours.
    • These modified cells are then infused back into the patient’s bloodstream after conditioning them to multiply more effectively.
    • The cells are even more specific than targeted agents and directly activate the patient’s immune system against cancer, making the treatment more clinically effective.
    • This is why they’re called ‘living drugs’.

    How does the therapy work?

    • In CAR T-cell therapy, the patient’s blood is drawn to harvest T-cells which are immune cells that play a major role in destroying tumour cells.
    • Researchers modify these cells in the laboratory so that they express specific proteins on their surface, known as chimeric antigen receptors (CAR).
    • They have an affinity for proteins on the surface of tumour cells.
    • This modification in the cellular structure allows CAR T-cells to effectively bind to the tumour and destroy it.
    • The final step in the tumour’s destruction involves its clearance by the patient’s immune system.

    Where is it used?

    • As of today, CAR T-cell therapy has been approved for leukaemias (cancers arising from the cells that produce white blood cells) and lymphomas (arising from the lymphatic system).
    • These cancers occur through the unregulated reproduction of a single clone of cells, that is, following the cancerous transformation of a single type of cell, it produces millions of identical copies.
    • As a result, the target for CAR T-cells is consistent and reliable.
    • CAR T-cell therapy is also used among patients with cancers that have returned after an initial successful treatment or which haven’t responded to previous combinations of chemotherapy or immunotherapy.
    • Its response rate is variable. In certain kinds of leukaemias and lymphomas, the efficacy is as high as 90%, whereas in other types of cancers it is significantly lower.

    How widespread is its use?

    • The complexity of preparing CAR T-cells has been a major barrier to their use.
    • The first clinical trial showing they were effective was published almost a decade ago; the first indigenously developed therapy in India was successfully performed only in 2022.
    • The technical and human resources required to administer this therapy are also considerable.
    • Treatments in the US cost more than a million dollars.
    • Trials are underway in India, with companies looking to indigenously manufacture CAR T-cells at a fraction of the cost.
    • The preliminary results have been encouraging.

    What are conventional cancer therapies?

    • The three major forms of treatment for any cancer are surgery (removing the cancer), radiotherapy (delivering ionising radiation to the tumour), and systemic therapy (chemotherapy- administering medicines that act on the tumour only).
    • Surgery and radiotherapy have been refined significantly over time whereas advances in systemic therapy have been unparalleled.
    • A new development on this front, currently holding the attention of many researchers worldwide, is the CAR T-cell therapy.

    Will this therapy be expensive in India as well?

    • In India, introducing any new therapy faces the twin challenges of cost and value.
    • Critics argue that developing facilities in India may be redundant and/or inappropriate as even when it becomes cheaper, CAR T-cell therapy will be unaffordable to most Indians.
    • Those who are affluent and require the therapy currently receive it abroad anyway.
    • While this is true, it may be the right answer to the wrong question.
    • Having access to a global standard of care is every patient’s right; how it can be made more affordable can be the next step.

     

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  • Banking Sector Reforms

    What are Primary Agricultural Credit Societies (PACS)?

    pacs

    The Union Budget has announced Rs 2,516 crore for computerization of 63,000 Primary Agricultural Credit Societies (PACS) over the next five years.

    Primary Agricultural Credit Societies (PACS)

    • PACS are village level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level.
    • Credit from the SCBs is transferred to the district central cooperative banks, or DCCBs, that operate at the district level.
    • The DCCBs work with PACS, which deal directly with farmers.
    • Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them.
    • A village can have multiple PACS.

    What is its lending mechanism?

    • PACS are involved in short term lending — or what is known as crop loan.
    • At the start of the cropping cycle, farmers avail credit to finance their requirement of seeds, fertilisers etc.
    • Banks extend this credit at 7 per cent interest, of which 3 per cent is subsidised by the Centre, and 2 per cent by the state government.
    • Effectively, farmers avail the crop loans at 2 per cent interest only.

    NPAs with PACS

    • NABARD’s annual report of 2021-22 shows that 59.6 per cent of the loans were extended to the small and marginal farmers.
    • A report published by the Reserve Bank of India on December 27, 2022 put the number of PACS at 1.02 lakh.
    • At the end of March 2021, only 47,297 of them were in profit.
    • The same report said PACS had reported lending worth Rs 1,43,044 crore and NPAs of Rs 72,550 crore. Maharashtra has 20,897 PACS of which 11,326 are in losses.

    Why are PACS attractive?

    • The attraction of the PACS lies in the last mile connectivity they offer.
    • For farmers, timely access to capital is necessary at the start of their agricultural activities.
    • PACS have the capacity to extend credit with minimal paperwork within a short time.

     

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  • Financial Inclusion in India and Its Challenges

    What are White Label ATMs?

    atm

    The Reserve Bank of India (RBI) has extended the validity of authorization issued to Vakrangee to setup, own and operate White Label ATMs in India.

    What is White Label ATM?

    • Usually ATMs are managed by banks. But White Label ATMs are owned and operated by non-banking entities.
    • ATMs operated under this business model allow customers to use them for banking transactions regardless of the bank they have an account with.
    • RBI approved the operation and inclusion of WLA ATM by non-banking organisations under the Payment and Settlement Systems Act of 2007.
    • It was introduced to expand India’s ATM network, especially in semi-urban and rural areas.

    How does it work?

    • White Label ATM companies work with banking networks to enable bank customers to use banking services like withdrawing funds, paying bills and depositing cash.
    • White Label ATM (WLA) operators’ charge card-issuing bank fees to provide this facility to the bank’s clients.
    • The transaction process in White Label ATM operators consists of a lending bank, a sponsor bank that handles settlements and an ATM network provider.
    • The Sponsor bank provides the cash facility for the White ATM.

    Significance of WLA: Financial Inclusion

    • Financial inclusion is concerned with the availability of financial services and adequate financing to low-income individuals and other vulnerable segments of society.
    • ATMs promote financial inclusion and provide customers with various banking services at any location and time.

    White Label ATM Operators in India

    • Non-banks set up and operate White ATMs as per the rules laid down by RBI for using ‘other bank’ ATMs.
    • These ATMs accept all domestic debit cards and offer the first five or three transactions per month free of cost, depending on the location.
    • Below mentioned are some examples of companies that operate white label ATMs:
    1. Indicash – India’s largest White Label ATM network responsible for ‘uberisation of ATMs.’
    2. India1 Payments (BTI Payments Pvt. Ltd.)
    3. Hitachi Payment Services Pvt. Ltd.
    4. Tata Communications Payment Solutions Ltd.
    5. Vakrangee Limited

    Benefits of White Label ATMs

    There are many benefits of White Label ATMs:

    • Customers benefit from White Label ATMs since they eliminate the need to visit a bank branch on a regular basis
    • ATMs are available 24 hours a day, seven days a week, including holidays
    • Banks benefit from this because they do not have to maintain a huge staff/office (compared to a system without ATMs). It lowers their branch-operational costs
    • Financial inclusion of rural, semi-urban, and low-income people
    • It allowed ATM cards to be issued by any bank that can be used at White Label ATMs
    • WLA atm also provides mobile recharge, energy bill payments, and other value-added services

    Limitations of White Label ATMs

    There are also a few limitations of White Label ATMs:

    • The issue of unsuccessful transactions is a key source of concern. In the event of a dispute, the dispute resolution method will include three entities, namely the WLA operator, the WLA operator’s sponsor bank, and the customer’s bank.
    • Customers will be discouraged by the cost issue, as they will be obliged to pay a price to use the White Label ATMs, as only a limited number of free transactions are permitted on the WLAs
    • White label ATMs’ financial viability is questioned because of their low interchange charge and hefty operational expenses
    • If there is a bank-managed ATM in the same area as a WLA ATM, the White Label ATMs may not be able to generate a profit

    Differences Between Brown Label and White Label ATMs

    The differences between Brown Label ATM and White Label ATMs are:

    Brown Label ATM White Label ATM
    Brown Label ATMs have their hardware and ATM machine leased by a service provider Non-banking entities own and operate ATMs
    The sponsor bank’s brand name appears on the Brown label ATM There is no bank logo on a white label ATM machine
    The RBI is not directly involved. These outsourcing firms are bound by contracts with their respective banks The RBI is directly involved as white label companies must obtain a license or permission from the RBI in order to conduct business

     

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  • Artificial Intelligence (AI) Breakthrough

    Bard: Google’s answer to ‘ChatGPT’

    bard

    Google has finally decided to answer the challenge and threat posed by Microsoft-backed OpenAI and its AI chatbot- ChatGPT.

    What is Bard, when can I access it?

    • Google’s Bard is functioned on LaMDA, the firm’s Language Model for Dialogue Applications system, and has been in development for several years.
    • It is what Sunder Pichai termed an “experimental conversational AI service”.
    • Google will be opening it up to trusted testers ahead of making it more widely available to the public in the coming weeks.
    • It is not yet publicly available.

    What is Bard based on?

    • Bard is built on Transformer technology—which is also the backbone of ChatGPT and other AI bots.
    • Transformer technology was pioneered by Google and made open-source in 2017.
    • Transformer technology is a neural network architecture, which is capable of making predictions based on inputs and is primarily used in natural language processing and computer vision technology.
    • Previously, a Google engineer claimed LaMDA was a ‘sentient’ being with consciousness.

    How does it work?

    • Bard draws on information from the web to provide fresh, high-quality responses.
    • In short, it will give in-depth, conversational and essay-style answers just like ChatGPT does right now.
    • It requires significantly less computing power, enabling us to scale to more users, allowing for more feedback.

    A user will be able to ask Bard to explain new discoveries from NASA’s James Webb Space Telescope to a 9-year-old, or learn more about the best strikers in football right now, and then get drills to build your skills.

     

    What about its computing power?

    • Remember running these models also requires significant computing power.
    • For instance, ChatGPT is powered by Microsoft’s Azure Cloud services.
    • This also explains why the service often runs into errors at times, because too many people are accessing it.

    Key difference between ChatGPT and Google’s Bard

    • It appears that to take on ChatGPT, Google has an ace up its sleeve: the ability to draw information from the Internet.
    • Bard draws on information from the web to provide fresh, high-quality responses.
    • ChatGPT has impressed with its ability to respond to complex queries — though with varying degrees of accuracy — but its biggest shortcoming perhaps is that it cannot access real-time information from the Internet.
    • ChatGPT’s language model was trained on a vast dataset to generate text based on the input, and the dataset, at the moment, only includes information until 2021.

    Is Bard better than ChatGPT?

    • Bard looks like a limited rollout right now.
    • Google is looking for a lot of feedback at the moment around Bard, so it is hard to say whether it can answer more questions than ChatGPT.
    • Google has also not made clear the amount of knowledge that Bard possesses.
    • For instance, with ChatGPT, we know its knowledge is limited to events till 2021.
    • Of course, it is based on LaMDA, which has been in the news for a while now.

    Why has Google announced Bard right now?

    • Bard comes as Microsoft is preparing to announce an integration of ChatGPT into its Bing Search engine.
    • Google might have invented the ‘Transformer’ technology, but it is now being seen as a latecomer to the AI revolution.
    • ChatGPT in many ways is being called the end of Google Search, given that conversational AI can give long, essay style and sometimes elegant answers to a user’s queries.
    • Of course, not all of these are correct, but then AI is capable of correcting itself as well and learning from mistakes.

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  • Foreign Policy Watch: India-United States

    Chinese balloon over the US and India as a Peacemaker

    balloon

    Context

    • On 1 February, a high-altitude balloon of Chinese origin was spotted over the US state of Montana, which also houses one of the country’s three active nuclear missile silos. on 4 February, US forces shot down the balloon over the country’s South Carolina coast and are now proceeding to collect some of the debris.

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    Balloons for surveillance

    • Balloons could prove much cheaper and loiter for extended periods, providing continuous surveillance over targets, unlike satellites based on orbital motion.

    How The US responded?

    • Initial assessment: The US government officially described it as a surveillance balloon with no immediate military or physical threat but was quick to go back on its initial assessment.
    • Incident as a part of Chinese larger troubling pattern: An American view describes the Chinese balloon incident as part of a larger, more troubling pattern.
    • China claims as it was civilian airship and unintentionally flown: Despite Chinese claims that the balloon was a harmless civilian airship that had unintentionally flown into US airspace, Secretary of State Antony Blinken cancelled his much-anticipated diplomatic visit to Beijing.
    • Issue is a matter of violation of sovereignty: The US has said that the balloon issue is a matter of violation of sovereignty, and, as of 4 February, there are reports of another balloon being spotted over South America that China has admitted is also theirs.

    Similar experiments

    • US utilising high-altitude balloons: Not just China, the US has also experimented with utilising high-altitude balloons in space for a long time. In July 2022, NASA tested an aerial robotic balloon that would work in tandem with an orbiter to carry out scientific measurements of Venus.
    • UK demonstrated in 2022: In August 2022, the UK selected an American company to demonstrate an uncrewed platform for stratospheric communications, intelligence, surveillance and reconnaissance (ISR). The need was for manoeuvrable, long-duration missions capable of locating targets anywhere on earth.

    Global geopolitical struggle

    • Default mode but with different players: The event if viewed from a historical perspective, the world is back to its default mode, only this time, it has a different set of actors.
    • It involves various forms of power, primarily shaped by technology: Notably, there exist also nuclear weapons in the hands of nine powers, unlike during the Cold War era, when the number was confined to five.
    • Economic and technological integration is much greater than ever before: Ever since Russia invaded Ukraine in 2022, attempts at desegregating economic and technological fields have not just continued but also gained momentum.
    • Camps led by the US and China: Global cooperation is in short supply and is being morphed into a coalition-building exercise ensconced in primarily two camps led by the US and China.

    India’s posture in a polarized world

    • Benefited from lower cost supplies from China and Russia: Economically, it has maintained trade with China and benefited from lower-cost energy supplies from Russia.
    • India’s tilt towards west: After China’s aggression on the northern borders, India has tilted to the West, especially in the maritime and technological arenas.
    • Increasingly polarised world challenging India’s foreign policy: But as global tensions grow and confrontations increase, India could find itself under pressure to take sides even when its interests are not under contention. Therefore, there is a need to articulate a foreign policy paper on India’s alignment posture in a world that is becoming increasingly polarised.
    • This policy must foster partnerships based on context and not on blocs: India could join hands with the US and its allies in seeking an open and rules-based Indo-Pacific order. It could even partner with China on climate change if there is a congruence of interests.
    • Challenge is to avoid being dragged in war: In grand strategic terms, India’s challenge is to avoid being dragged into a World War that must be considered a growing possibility.

    balloon

    India as peacemaker

    • Exploring the role of a peace broker
    1. What could be at the back of the Indian strategic mind is to play the role of a peace broker and explore every possibility to make it count.
    2. This is important because the state of relations between the US and China does not seem to have many prospects for a return to dialogue that can facilitate consensus on bilateral, multilateral and global issues.
    3. It is a possibility reflected in the inability of the United Nations to intervene, as the major parties involved are themselves in contention for the position of the stronger superpower.
    • India may be getting into a position to make a peacebuilding attempt:
    1. A report by a US-based business intelligence consulting firm corroborates this asserts that India may be getting into a position to make a peacebuilding attempt
    2. According to this survey, Prime Minister Narendra Modi is among the world’s most popular global leaders. With a 78 per cent approval rating, Modi is far ahead of other contenders.

    balloon

    Conclusion

    • It is high time that Indian strategists explore the feasibility of making India a peacemaker. It is a difficult and challenging task that may seem impossible. But there is no reason not to try, as the Prime Minister and the posture of the nation has both internal and external popularity on its side.
  • Women empowerment issues – Jobs,Reservation and education

    Urban space for women: India can show the path

    Urban

    Context

    • More than half of the population worldwide lives in cities, making urban centres critical to socioeconomic growth and development. However, rampant urbanisation has led to unequal distribution of resources and a lopsided development approach that ignores the specific needs of women. Despite projections of two-thirds of the population living in cities by 2050, urban development remains exclusive of women’s perspectives and needs.

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    Gender inequality in cities

    • Primary reason: One of the primary reasons behind gender inequality in cities is that modern cities are planned mainly by men and for men, thus sidelining the needs of women.
    • Designed assuming that the role of women is confined to household: The cities have been traditionally designed on the premise that a woman’s role is primarily confined to the household, barring their need to access the immediate neighbourhood.
    • Patriarchal approach has taken away the Fundamental rights: This patriarchal approach, while shaping the power dynamics between men and women, has also taken away the fundamental right of women to live and thrive in a safe and inclusive outdoor environment.

    Urban

    Role of women and the challenges they face in urban spaces

    • Women one of the most vulnerable groups in society: Women, one of the most vulnerable groups in society, face violence in physical and cyber mode, making it difficult for them to access opportunities that come with urbanisation.
    • For instance: Due to poorly lit streets and a lack of women-friendly mobility systems, women cannot actively participate in the workforce. Only 27 percent of women participate in the workforce in India as compared to 79 percent of men.
    • Male dominated nature of job opportunities available in the cities: Most of them are male-dominated, such as the platform economy jobs of delivery agents and those at vast construction sites, leaving less space for women to intervene.
    • Women professionals are burdened with dual work responsibilities: Moreover, with an increase in the number of households in cities, women are devoting most of their time to home and caring work, thus, leaving less time for them to do a job. In this scenario, women professionals are burdened with dual work roles, impacting their physical and mental well-being.
    • Discouraged drop outs: Furthermore, the social tendency to discourage urban women from working after marriage has generated a trend of ‘discouraged drop-outs’, leaving them out of the workforce.
    • Role in urban planning and governance is abysmally low: Women’s participation in urban planning and governance has been abysmally low. Women hold only 10 percent of the highest ranks globally in architecture and urban planning offices. With women left out of city planning institutions, city planners ignore the needs of women and the challenges they face.

    Urban

    Do you know: The concept of a 15-minute city?

    • The concept of a 15-minute city, i.e., where everything needed will be available within a walkable distance of 15 minutes, is attracting the interest of planners even in India.
    • However, for stray examples such as Magarpatta, a city in Pune, the concept has failed to move beyond rhetoric.

    Focus areas of development

    • City society intervention is a prerequisite: The intervention of civil society and policymakers on specific parameters can help build gender-responsive cities that accommodate the concerns of all citizens.
    • Building safer cities: Better street lighting, women-friendly transport systems, and behavioural change programmes that help people understand that the onus of safety is not on women but on society as a whole will surely improve women’s access to safer cities.
    • For instance: Building technology systems such as the Safetipin app helps women map safe areas and take necessary actions in emergencies by collating a list of important contacts, GPS tracking and so on, thus, trying to make streets safer.
    • Changing the attitude and mindset of society at large: Counselling sessions for men, sensitising them about how women feel if a certain social behaviour is practised, can trigger an eventual change in their mindset towards women’s needs.
    • Building gender-inclusive jobs: Data suggests that 10 percent increase in women’s workforce participation rate can add US$ 770 million, approximately 18 percent, to India’s GDP. Teaching men to shoulder family responsibilities, making workspaces women-friendly, promoting women to leadership positions, and diversifying the availability of jobs can go a long way in improving the situation.
    • Role of women in urban governance: Having women at the top can have a domino effect in society, making other women aspirational of the positions they can reach and the impact they can create.
    • For example: Cities like Athena, Bogota, Nairobi, Dakar, and San Francisco that have had female leadership have witnessed greater socio-economic and sustainable development.
    • Developing gender-sensitive infrastructure: Globally, one in three women do not have access to safe toilets. Building toilets for women and places to breastfeed and baby changing stations improves the turnout of women on the streets. Improving access to clean water will also improve overall health for women as globally.

    Urban

    Way ahead

    • Need a paradigm shift in approaches to policymaking: Including more women in decision-making roles to identify shared concerns and build integrated solutions will need a paradigm shift in approaches to policymaking. This calls for a policy focus on optimum resource allocation and equitable distribution, ensuring easy, safe, and affordable access to all.
    • Feminist approach in policymaking: Policymakers need to adopt a feminist approach to urban development.
    • Feminist urbanism: Feminist urbanism seeks to understand and integrate the concerns of women and other gender and sexual minorities across caste, class, age differences, disabilities, etc.
    • Developing cities on the lines of feminist urbanism: Creating a city on the lines of feminist urbanism refers to constructing compact and mixed-use neighbourhoods, inclusive streets focusing on pedestrian needs and building other critical urban infrastructure.

    Conclusion

    • Building global partnerships to aid gender mainstreaming in urban spaces can prove fruitful. India has a chance to further this cause as it assumes the G20 presidency. The Urban 20 grouping can bring urban policymakers from the -20 nations to deliberate on women’s rights and evolve gender-inclusive development processes to help cities attain the 2030 agenda for sustainable development holistically.
  • Government Budgets

    Budget and the Rural Economy

    Budget

    Context

    • Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24. Union budgets can be understood in two ways. The first is as a standard accounting exercise of the government’s revenues and expenditures. It is this second aspect that provides insight into the government’s assessment of the challenges facing the economy and ways to overcome them.

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    First aspect: standard accounting exercise of the government’s revenues and expenditures

    • Projections are less reliable: Over the years, this has ceased to be a good metric with governments failing to spend what is announced in the budget. While the practice of off-budget entries is now no longer relevant, even revenue projections are much less reliable.
    • Budget a comprehensive document: However, the budget continues to remain relevant as the most important and perhaps the only comprehensive economic document of the government.

    Second aspect: Government’s assessment of the economic challenges and ways to overcome

    • Premature to conclude: While the fog of the pandemic has disappeared and the associated supply bottlenecks have eased, it is premature to conclude that the economy has fully recovered.
    • Per capita income is low: Per capita incomes in real terms in 2021-22 are still below the 2018-19 levels and the overall growth between 2016-17 and 2021-22 is at its lowest level of 3.7 per cent for any five-year period in the last four decades.

    Budget

    The pandemic effect:

    • Economic slowdown: The fact that the economy was slowing down before the pandemic makes it clear that Covid only exacerbated the already fragile economic situation.
    • Energy towards managing the pandemic: The structural factors that led to the slowdown remain, as in the last three years the government’s efforts were directed towards managing the pandemic.
    • Decline in demand: The most important of these is the decline in demand, both for consumption and investment. Private consumption accounts for almost 60 per cent of the economy and this engine of growth has failed to fire.
    • The distress is far more serious in rural areas: Rural wages have stagnated for almost a decade now. Farmers’ incomes have either declined or, at best, stagnated in the last five years.

    Budget

    Critique: Budget and the rural economy

    • Withdrawal of expenditure: What has been done is the withdrawal of expenditure on almost every head that mattered for rural economic recovery. With spiraling inflation and even the cushion of free foodgrains having been withdrawn, rural areas are likely to face an uncertain situation.
    • The budget for the agricultural sector is lower than the allocation last year: In real terms, the budget has declined by 10 per cent at a time when the agricultural sector is going through its worst crisis. The rise in input costs for both energy and fertilisers is likely to get worse with the withdrawal of the fertiliser subsidy.
    • Declined allocation of cash transfer: Even the nominal cash transfer that was provided as part of the PM-Kisan has seen a decline in allocation. But then, this budget is no different from others in the last five years.
    • Actual investment in agriculture is declined: Public investment in agriculture declined by 0.6 per cent per annum between 2016-17 and 2020-21, the last year for which data is available. This is a period when the agrarian economy has suffered its worst crisis of profitability.
    • Declined budget for non-farm sector: The non-farm sector is now greater in terms of its contribution to the rural economy but has seen a decline in budget allocations.
    • For instance: The budget for the Ministry of Rural Development is 13 per cent lower than the revised expenditure last year. The National Rural Employment Guarantee Scheme (MGNREGA) has seen its budget decline in the revised estimates for 2022-23. This is the lowest amount allocated in the last five years compared to actual expenditure on the scheme.
    • Only Hosing scheme has seen an increase: The only scheme that has seen an increase in allocation is the rural housing scheme, from an actual spending of Rs 48,422 crore in 2022-23 to Rs 54,487 crore.

    Budget

    Supply-side interventions in demand constrained economy

    • Preference for supply-side interventions: The government’s preference for supply-side interventions even when there is excess capacity in a demand-constrained economy. It is this understanding that is reflected in an almost one-third increase in allocation for investment. A bulk of this is in railways and roads a much-needed boost to the infrastructure sector.
    • Private sector needs to accompany: But given the small share of public investment, it is unlikely to be sufficient unless it is accompanied by the private sector increasing its investment. Unfortunately, the private sector neither responding to rising public investment nor tax subsidies, as were given in 2019.
    • Overall impact: This will have a negligible impact on employment and domestic demand given the low employment elasticity of these investments. Regardless, the increase in investments is welcome.

    Conclusion

    • The problem with this budget is not accounting but economic policy. This was the last full budget in which government could undertake serious steps to revive the economy. That required prioritising allocations towards reviving consumption demand, spurring private investment and protecting people from the vulnerabilities of high inflation and a slowing economy.

    Mains Question

    Q. Discuss the impact of pandemic on Indian economy. Highlight governments supply side interventions in demand constrained economy.

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