Archives: News

Capital Markets: Challenges and Developments

What is Additional Surveillance Mechanism (ASM)?

Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
The National Stock Exchange (NSE) placed very famous enterprises of business tycoons under the additional surveillance mechanism (ASM).

Why in news?
- The Adani Group has shed $108 billion in market value since Hindenburg Research accused it of stock manipulation and accounting fraud.
What is Additional Surveillance Mechanism (ASM)?
- 2018 saw the establishment of the Additional Surveillance Measure (ASM), a measure by SEBI and recognised stock exchanges to control the incredibly volatile stocks on the Indian stock market.
- ASM in the stock market functions as a control measure for speculative trading to safeguard the interests of retail investors and keep them out of potentially dangerous trading situations.
- There are two parts of additional margins:
1. Long-term ASM
2. Short-term ASM
What is ASM list in the stock market?
- ASM list means a collection of securities currently under observation owing to variables like price volatility, volume variation, etc.
- Investors are alerted to unexpected price movement by stocks that have been shortlisted for the ASM list.
- These equities are subject to various trading restrictions to halt any speculation.
- The regulations that apply to stocks on the ASM list are more stringent.
- They are prohibited from being pledged and using intraday leverages like bracket and cover orders, among others.
How does it work?
- For instance, the stock will be moved to a 5% price band the day it joins the ASM list; from then on, it may only move 5% up or down from the previous day’s closing level.
- As a result of this limit violation, the stock can no longer trade on the market once this limit is violated.
- In addition, the investor ought to have 100% margin money to trade the stock as of the fifth day.
- The selected securities will be monitored further, based on predetermined criteria and transferred into Trade to Trade settlement once the criterion is met.
Criteria to determine ASM list stocks

The following criteria are used to select stocks for inclusion in ASM and were mutually decided upon by SEBI and Exchanges:
- Close-to-Close Price Variation
- Market Capitalisation
- Volume Variation
- Delivery Percentage
- High Low Variation
- Client Concentration
- of Unique PANs
Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Wildlife Conservation Efforts

CITES database reveals Red Sanders smuggling

Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia
The CITES trade database has recorded 28 incidents of Red Sanders confiscation, seizure, and specimen from the wild being exported from India.

Red Sanders
- The species, Pterocarpus santalinus, is an Indian endemic tree species, with a restricted geographical range in the Eastern Ghats.
- It is a very slow-growing tree species that attains maturity in natural forests after 25-40 years.
- It is endemic to a distinct tract of forests in Andhra Pradesh.
- It is mainly found in Chittoor, Kadapa, Nandhyal, Nellore, Prakasam districts of Andhra Pradesh.
- It was classified as ‘near threatened’ in 2018 and has now joined the ‘endangered’ list once again in 2021.
- It is listed under Appendix II of CITES and is banned from international trade.
Legal protection in India
- The Union Environment Ministry had decided to keep Red Sanders (red sandalwood) OUT of the Schedule VI of Wild Life Protection Act, 1972, arguing that this would discourage the cultivation of the rare plant species.
- Schedule VI regulates and restricts the cultivation, possession, and sale of a rare plant species.
Threats to this specie
- Red Sanders are known for their rich hue and therapeutic properties, are high in demand across Asia, particularly in China and Japan.
- They are used in cosmetics and medicinal products as well as for making furniture, woodcraft and musical instruments.
- Its popularity can be gauged from the fact that a tonne of Red Sanders costs anything between Rs 50 lakh to Rs 1 crore in the international market.
Try this question from CSP 2016:

Q.With reference to ‘Red Sanders’, sometimes seen in the news, consider the following statements:
1. It is a tree species found in a part of South India.
2. It is one of the most important trees in the tropical rain forest areas of South India.
Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Post your answers here.
Back2Basics: Convention on International Trade in Endangered Species (CITES)
- CITES stands for the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
- It is as an international agreement aimed at ensuring “that international trade in specimens of wild animals and plants does not threaten their survival”.
- It was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.
- It entered into force on July 1, 1975, and now has 183 parties.
- The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.
- India is a signatory to and has also ratified CITES convention in 1976.
CITES Appendices
- CITES works by subjecting international trade in specimens of selected species to certain controls.
- All import, export, re-exports and introduction from the sea of species covered by the convention has to be authorized through a licensing system.
- It has three appendices:
1. Appendix I includes species threatened with extinction. Trade-in specimens of these species are permitted only in exceptional circumstances.
2. Appendix II provides a lower level of protection.
3. Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling trade.
Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

What are Lab-Grown Diamonds?

Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
During her Budget speech, Finance Minister announced the government’s move to focus on lab-grown diamonds (LGDs).

What did the FM announce?
- Customs duty on the seeds used in lab-grown diamond manufacturing will be reduced, announced the finance minister.
- She also announced a grant to IITs to facilitate the growth of LGDs in India.
What are Lab-Grown Diamonds (LGD)?
- Lab-grown diamonds are diamonds that are produced using specific technology which mimics the geological processes that grow natural diamonds.
- They are not the same as “diamond simulants” – LGDs are chemically, physically and optically diamond and thus are difficult to identify as “lab-grown.”
- While materials such as Moissanite, Cubic Zirconia (CZ), White Sapphire, YAG, etc. are “diamond simulants” that simply attempt to “look” like a diamond.
- LGDs have basic properties similar to natural diamonds, including their optical dispersion, which provide them the signature diamond sheen.
- They lack the sparkle and durability of a diamond and are thus easily identifiable.
- However, differentiating between an LGD and an Earth Mined Diamond is hard, with advanced equipment required for the purpose.
How are LGDs produced?

There are multiple ways in which LGDs can be produced.
- High pressure, high temperature (HPHT) method: This method requires extremely high pressure, high temperature presses that can produce up to 730,000 psi of pressure under extremely high temperatures (at least 1500 Celsius). Usually graphite is used as the “diamond seed” and when subjected to these extreme conditions, the relatively inexpensive form of carbon turns into one of the most expensive carbon forms.
- Other processes: These include “Chemical Vapor Deposition” (CVD) and explosive formation that creates what are known as “detonation nano-diamonds”.
What are LGDs used for?

(1) Production
- For instance, LGDs are most often used for industrial purposes, in machines and tools. Their hardness and extra strength make them ideal for use as cutters.
- Furthermore, pure synthetic diamonds have high thermal conductivity, but negligible electrical conductivity.
(2) Electronics industry
- This combination is invaluable for electronics where such diamonds can be used as a heat spreader for high-power laser diodes, laser arrays and high-power transistors.
(3) Jewelleries
- Lastly, as the Earth’s reserves of natural diamonds are depleted, LGDs are slowly replacing the prized gemstone in the jewellery industry.
- Crucially, like natural diamonds, LGDs undergo similar processes of polishing and cutting that are required to provide diamonds their characteristic lustre.
Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Foreign Policy Watch: India-United States

iCET: Initiative on Critical and Emerging Technologies between India and US

op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Context
- The talks between India’s National Security Advisor Ajit Doval and his American counterpart Jake Sullivan in Washington this week have concluded with the announcement of a new road map for deeper military and techno-economic cooperation between the two countries that is iCET.
Crack Prelims 2023! Talk to our Rankers

Background: Idea first mooted in QUAD summit
- The idea was first mooted in the meeting between Prime Minister Narendra Modi and President Joe Biden on the margins of the Tokyo summit of the Quadrilateral Security Dialogue (Quad) last May.
Ups and downs in high technology cooperation in US-India relations
- Early advances in India’s nuclear and space programs: High technology cooperation has long been a major focus of US-India relations. Early advances in India’s nuclear and space programmes in the 1950s and 1960s involved significant inputs from the US.
- US nuclear sanctions and reduced cooperation: But the US nuclear sanctions from the 1970s steadily whittled down the extent of bilateral high-tech cooperation.
- Civil nuclear initiative renewed cooperation: The historic civil nuclear initiative of 2005 opened the door for renewed technological cooperation.
- Political ambivalence bureaucratic inertia prevented best use: But residual restrictions on technology transfer in Washington and Delhi’s political ambivalence and bureaucratic inertia prevented the best use of the new possibilities.
- The iCET process and new possibilities ahead: The iCET process, which will be monitored and driven from the PMO in Delhi and the White House in Washington, will hopefully bring greater coherence to this round of India-US technological engagement.
What is Initiative on Critical and Emerging Technologies (iCET)?
- Cooperation in emerging technology: The iCET is a partnership between India and the US to work together in developing important and new technologies.
- Areas of collaboration for instance: The iCET involves collaboration in a range of areas including quantum computing, semiconductors, 5G and 6G wireless infrastructure, and civilian space projects such as lunar exploration.
- Adding depth and breadth to already growing partnership: The iCET’s goal is to increase the technology interaction between the US and India while also potentially adding additional strategic depth and breadth to their growing partnership.
- Directly monitored by PMO and White house: The Prime Minister’s Office in Delhi and the White House in Washington will oversee and direct the iCET.
Significance of iCET for India
- The importance of iCET in the context of assertive China: Lending urgency to the iCET is the growing convergence of Indian and US interests in managing the security, economic, and technological challenges presented by a rising and assertive China.
- India’s alternative for dependence on Russian military technology: India is also looking to reduce its over dependence on Russian weapons and military technology and to produce more weapons at home in partnership with western countries.
- Boost to India’s technological capabilities: The iCET would provide India with access to cutting-edge technology and expertise in areas that are critical and emerging in nature.
- Economic growth: Working together on new and important technologies can lead to more business between India and the US, which can help the economy grow as it will bring more investment and employment opportunities.
Other focus area: Cooperation in defence production
- The two sides are also focused on cooperation in defence production.
- While much of this cooperation will need to be fleshed out in the months ahead, Doval and Sullivan announced one concrete measure the making of a fighter jet engine in India.
- GE Aerospace has applied for an export licence for jet engine production and phased transfer of technology to Indian entities. Washington promises to process this application expeditiously. This fits in nicely with Delhi’s plans to modernise its rusty defence industrial base.
Conclusion
- If implemented with speed and purpose, the bilateral Initiative on Critical and Emerging Technologies (iCET) could lend a new strategic depth and breadth to the expanding engagement between India and the United States.
Mains question

Q. What is Initiative on Critical and Emerging Technologies (iCET)? Discuss the Importance of iCET especially for India.

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor

Is Judicial Majoritarianism justified?

| Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

As the recent majority judgment of the Supreme Court on demonetization comes under criticism, the minority judgment by J. Nagarathna is being hailed for its challenge to the RBI’s institutional acquiescence (reluctant acceptance) to the Central government.

What is Judicial Majoritarianism?

Numerical majorities are of particular importance to cases which involve a substantial interpretation of constitutional provisions.
The requirement for a majority consensus flows from Article 145(5) of the Constitution which states that no judgment in such cases can be delivered except with the concurrence of a majority.
It also provides for judges to freely deliver dissenting judgments or opinions.
In important cases, Constitutional Benches, consisting of five or more judges, are set up in consonance with Article 145(3) of the Constitution.
Such Benches usually consist of five, seven, nine, 11 or even 13 judges.

Why in news?

Blind acceptance: This situation raises questions with respsect to our blind acceptance of numerical majority judgements.
Disregard for dissent: This flags issues in judicial decision-making and the constitutional disregard of analysis and appreciation of arguments and evidence in dissenting judgments.
Merits of dissent: Analysts now seek to challenge the weightage given to numerical majorities in judicial decisions by our Constitutional Courts as opposed to the merits in their reasoning.

CASE STUDY: “Why Do Bare Majorities Rule on Courts?”

Jeremy Waldron has dealt with this concept at length in his work titled ‘Five to Four: Why Do Bare Majorities Rule on Courts?’.
He proffers that the arguments which are made in defense of judicial majoritarianism cannot explain or justify our adherence to majority decisions –

1. Efficiency through ease of decision-making;

2. Epistemic objectivity through majority adherence; and

3. Equality through fairness,

He questions why is it that the judges too have to resort to head counting in order to resolve disagreements amongst judges.

Heart of the debate: Why do experts need to resort to ‘majority’?

Defiance of merit: A meritorious minority decision, irrespective of the impeccability of its reasoning receives little weightage in terms of its outcomes.
Complex situations: All judges on a particular Bench give their rulings on the same set of facts, laws, arguments and written submissions.
Nature of bias: Judicial hunches may be an outcome of subjective experiences, outlooks, perceptions, prejudices and biases.

Narrow margin: Some meritorious dissents in India

Our Constitutional history is replete with such meritorious dissents-

The dissenting opinion of Justice H.R. Khanna in A.D.M. Jabalpur v. Shivkant Shukla (1976) upholding the right to life and personal liberty even during situations of constitutional exceptionalism is a prime example.
Another example is the dissenting opinion of Justice Subba Rao in the Kharak Singh v. State of U.P. (1962) case upholding the right to privacy which received the judicial stamp of approval in the K.S. Puttaswamy v. UOI (2017) case.

Do you know?

The Kesavananda Bharati verdict (1973) was divided 7–6 majority. And 4 other judges to bench refused to sign the Judgment! It is almost like the Basic Structure Doctrine was rejected. It should have had an overwhelming majority.

Way forward

Weightage-based assent in judgments: Ronald Dworkin proffers a system that may either give more weightage to the vote of senior judges given that they have more experience or to the junior judges as they may represent popular opinion better.
Doing away with headcounts: Such alternatives, however, can only be explored once we identify and question the premises and rationales which underlie head-counting in judicial decision-making.
Imbibe critical discourse: The absence of a critical discourse on judicial majoritarianism represents one of the most fundamental gaps in our existing knowledge regarding the functioning of our Supreme Court.
Cases to expert benches: As pending Constitutional Bench matters are listed for hearing and judgments are reserved, we must reflect upon the arguments of judicial majoritarianism on the basis of which these cases are to be decided.

Conclusion

There is a need to reflect upon the concept of judicial majoritarianism.
The academic discourse on this aspect is still nascent and developing.

Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

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

Judicial Appointments Conundrum Post-NJAC Verdict

Who is a Puisne Judge, and what does the term mean?

Prelims Only | Polity | Mains Paper 2: Executive & Judiciary
While recommending two names for appointment as judges of the Supreme Court, the Collegium headed by Chief Justice of India D Y Chandrachud said that the collegium had taken into “consideration the seniority of Chief Justices and senior puisne Judges…”

Who are Puisne Judge?
- According to the dictionary, the word puisne has French origins, which means “later born” or younger.
- It is pronounced / “puny”, the English word that means small or undersized.
- Puisne is almost always used in the context of judges, and essentially denotes seniority of rank.
- The term puisne judge is used in common law countries to refer to judges who are ranked lower in seniority, i.e., any judge other than the Chief Justice of that court.
Now again, what is common law?
- Common law is the body of law that is created by judges through their written opinions, rather than through statutes or constitutions (statutory law).
- Common law, which is used interchangeably with ‘case law’, is based on judicial precedent.
- The United Kingdom (UK) and the Commonwealth countries, including India, are common law countries.
Legal reference to Puisne Judges

In the Third Judges Case ruling in 1998, one of the two cases that led to the evolution of the collegium system, the Supreme Court clarified that-
- The CJI must make a recommendation to appoint a Judge of the Supreme Court and to transfer a Chief Justice or puisne Judge of a High Court in consultation with the four seniormost puisne Judges of the Supreme Court.
Is a “puisne judge” in India the same as in the UK?
- In the UK, puisne judges are judges other than those holding distinct titles.
- The Supreme Court of Judicature Act, 1877 defined a “puisne judge” as any judge of the High Court besides the Lord Chancellor, the Lord Chief Justice of England, and the Master of the Rolls.
- In India, all judges have the same judicial powers.
- As the seniormost judge of a court, the Chief Justice has an additional administrative role.
- In India, there is a reference to a puisne judge only while considering the order of seniority for appointments, elevations to High Courts, etc., but it does not have a bearing on the exercise of a judge’s judicial power.
What is the recent context?
- The Supreme Court collegium recommended current Chief Justices of the Allahabad and Gujarat High Courts respectively, for appointment as judges of the Supreme Court.
- While giving reasons for its recommendation, the collegium said that the decision was made taking “into consideration the seniority of Chief Justices and senior puisne Judges in their respective parent High Courts.
- This was done because seniority is one of the several criteria that are considered while making appointments to the higher judiciary.
Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Tribes in News

Who are the Particularly Vulnerable Tribal Groups (PVTGs)?

Prelims Only | Governance | Mains Paper 2: Schemes For Vulnerable Sections
The Union Budget 2023-24 has provided to launch the Pradhan Mantri PVTG (Particularly Vulnerable Tribal Group) Development Mission in order to saturate the PVTG families and habitations with basic facilities.

What is the budgetary announcement about?
- The Pradhan Mantri PVTG Mission will be launched as part of ‘Reaching The Last Mile’, one of the seven Saptarishi priorities enlisted in this year’s Budget.
- More details are awaited for this new.
Particularly Vulnerable Tribal Groups (PVTGs)
- There are certain tribal communities who have declining or stagnant population, low level of literacy, pre-agricultural level of technology and are economically backward.
- They generally inhabit remote localities having poor infrastructure and administrative support.
- These groups are among the most vulnerable section of our society as they are few in numbers, have not attained any significant level of social and economic development.
- 75 such groups have been identified and categorized as Particularly Vulnerable Tribal Groups (PVTGs).
Origin of the concept
- The Dhebar Commission (1960-1961) stated that within Scheduled Tribes there existed an inequality in the rate of development.
- During the fourth Five Year Plan a sub-category was created within Scheduled Tribes to identify groups that considered to be at a lower level of development.
- This was created based on the Dhebar Commission report and other studies.
- This sub-category was named “Primitive tribal group”.
Features of PVTGs
- The features of such a group include a:
1. Pre-agricultural system of existence
2. Practice of hunting and gathering
3. Zero or negative population growth
4. Extremely low level of literacy in comparison with other tribal groups
- Groups that satisfied any one of the criterion were considered as PTG.
- In 2006 the government of India proposed to rename “Primitive tribal group” as Particularly vulnerable tribal group”.
Try this PYQ:

Q.Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:
1. PVTGs reside in 18 States and one Union Territory.
2. A stagnant or declining population is one of the criteria for determining PVTG status.
3. There are 95 PVTGs officially notified in the country so far.
4. Irular and Konda Reddi tribes are included in the list of PVTGs.
Which of the statements given above are correct? (CSP 2019)

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1, 3 and 4

Post your answers here.
Crack Prelims 2023! Talk to our Rankers

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Government Budgets

Budget 2023:Push for Digitisation and Green Growth

op-ed snap | Economics | Mains Paper 3: Government Budgeting
Context
- The Union Budget speech by Finance Minister Nirmala Sitharaman on Wednesday highlighted the government’s continuous efforts to push for digitisation in the country. Also the Finance Minister listed ‘Green Growth’ as one of the seven priorities of her Budget.
Crack Prelims 2023! Talk to our Rankers

Push for digitisation in the country: key highlights
- Digital Public Infrastructure for Agriculture: It will be an open source, open standard and interoperable public good. The platform will offer inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
- National Digital Library for Children and Adolescents: This will be established for facilitating the availability of quality books in different languages, genres and at different levels. The government will also try to inculcate a culture of reading by collaborating with NGOs, which will provide age-appropriate reading material to everyone.
- Centres of Excellence for Artificial Intelligence: There is a proposal for setting up three centres of excellence for Artificial Intelligence in top educational institutions. These centres, in partnership with leading players in the industry, will conduct interdisciplinary research and develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities.
- National Data Governance Policy: Government will formulate a data governance policy to enable access to anonymised data for innovation and research by start-ups and academia.
- 5G Services: A hundred labs will be established in engineering institutions for developing applications using 5G services to realise a new range of opportunities, business models, and employment potential.
- E-Courts: Government will roll out phase three of the E-Courts project to ensure the efficient administration of justice.
- Bharat Shared Repository of Inscriptions (Bharat SHRI): A digital epigraphy museum will be established and one lakh ancient inscriptions will be digitised in the first stage.
- Skill India Digital Platform: The digital ecosystem for skilling will be further expanded by launching a unified Skill India Digital platform for enabling demand-based formal skilling, linking with employers including MSMEs and facilitating access to entrepreneurship schemes.
Elements of the Budget’s Green Growth push
- Green Hydrogen Mission: The recently launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. India aims to reach a target of an annual production of 5 MMT of green hydrogen by 2030.
- Energy Transition: The Budget has provided Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
- Energy Storage Projects: To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.
- Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed.
- Green Credit Programme: For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.
- PM-PRANAM: A new PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
- GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme: 500 new waste to wealth plants under GOBARdhan scheme will be established for promoting circular economy.
- Bhartiya Prakritik Kheti Bio-Input Resource Centres: Proposal to facilitate over the next three years 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
- MISHTI: Mangrove Initiative for Shoreline Habitats & Tangible Incomes, MISHTI, will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.
- Amrit Dharohar: The government will promote their unique conservation values through Amrit Dharohar, a scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
- Coastal Shipping: Coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
- Vehicle Replacement: Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy states will also be supported in replacing old vehicles and ambulances.
Conclusion
- The Union Budget presented by Finance Minister Nirmala Sitharaman outlines the government’s push for digitization and green growth in India. Key highlights suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India.
Mains question

Q. Recently Finance Minister Nirmala Sitharaman presented Union Budget 2023. many suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India. Discuss.

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Opportunity to unlock the full Potential of MSMEs

op-ed snap | Economics | Mains Paper 3: Government Budgeting,Indian Economy
Context
- India overtook the UK as the world’s fifth-largest economy in 2022, and is on track to achieving PM Narendra Modi’s vision of a $5 trillion economy by 2026-27. Despite concerns of a looming global recession, supply disruptions and the Russia-Ukraine war, India has stood out as a bright spot, growing faster than most major emerging markets. The government’s budget for 2023 presents an opportunity to make the Indian MSMEs competitive and self-reliant.
Crack Prelims 2023! Talk to our Rankers

What are MSMEs? How are they defined?
- Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on:
1. The investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of and
2. The investment in equipment for enterprises engaged in providing or rendering of services.
MSMEs in India at present
- The 6.3 crore micro, small and medium enterprises which account for 30 per cent of GDP and employ nearly 11 crore people have demonstrated this spirit of resilience.
- With sales in several industries across the MSME sector reaching 90 per cent of pre-pandemic levels, India’s small businesses are scripting a turnaround.
Union budget 2023: An opportunity to make MSMEs more competitive and self-reliant
- Streamlining input tax credit for e-commerce suppliers: Currently, suppliers selling on e-commerce platforms need to procure input services like logistics, which are taxed at 18 per cent. This leads to precious working capital getting blocked without any visibility of future realisation, potentially discouraging suppliers from adopting e-marketplaces.
- Adequate working capital for small businesses: From meeting fixed expenses such as electricity, rent and employee wages to investing in future growth, adequate working capital is a must for small businesses.
- Lowering GST rates on input services: By lowering GST rates on input services availed by online sellers, the government will not only shore up their finances but also give a leg-up to their digitisation journey. Further, refunds of accumulated input tax credit will improve their cash flow situation.
- Expedited GST relaxation for small online businesses: There is also a need to expedite GST relaxation for small online businesses. In a landmark move last year, the GST Council announced a relaxation of rules for small businesses looking to go online.
- GST relaxation measures for small online vendors: Among other measures, mandatory GST registration was waived for small online vendors with a turnover of less than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
- Unlocking the potential of MSMEs through Digitization: With just 10 per cent of our MSMEs currently online, expeditious implementation of these new norms is key to unlocking their full potential. Millions of small businesses are waiting in the wings, hoping to reap the benefits of digitisation such as a much bigger addressable market, increased efficiencies and easier access to capital.
- The National Logistics Policy (NLP) can also be leveraged to make MSMEs competitive: The NLP aims to bring down logistics costs as a percentage of the GDP from 13-14 per cent to 8 per cent, on par with developed nations. While lower costs will encourage more MSMEs to use tech-powered logistics services, they will need support to tap rising e-commerce demand from smaller towns and semi-rural areas.
- Indian post and railways can be utilized for cost effective last mile delivery: The government could rope in India Post as a tech-enabled last-mile delivery partner that can facilitate cash-on-delivery transactions at competitive prices. Similarly, the unparalleled reach of Indian Railways can be synergised to ship wares to the remotest parts of the country quickly and cost-effectively.
Why the MSME sector is important especially for India?
- Employment: The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
- Help building inclusive and sustainable society: It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.
- For example: Khadi and Village industries require low per capita investment and employs a large number of women in rural areas.
- Contribution to GDP: With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.
- Exports: It contributes around 45% of the overall exports from India.
Conclusion
- With a visionary government charting out the nation’s growth path, it is anticipated that the budget would certainly deliver on the challenges for MSMEs and take us closer to the dream of an Atmanirbhar Bharat.
Mains question

Q. Highlight the significance of MSME’s for India. What more efforts can be taken to make MSMEs more competitive and self-reliant?

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor
Terrorism and Challenges Related To It

Drugs in the valley: Pakistan’s new weapon to finance terrorism

op-ed snap | Security Issues | Mains Paper 3: Border Area Security Challenges,Organized Crime & Terrorism
Context
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to peddling drugs to degenerate the youth of Jammu and Kashmir. Narcotics, Pakistan’s new weapon to finance terrorism within the Valley, has been dubbed the biggest challenge confronting Jammu and Kashmir by Police Chief Dilbag Singh.
Crack Prelims 2023! Talk to our Rankers

Background: Pakistan-sponsored terrorism and its impact
- The culture of violence implemented through constant financial and strategic support to the insurgency in the Kashmir Valley by Pakistan by training and infiltrating weapons and militants impacted society in many ways.
- Pakistan-backed terrorism destroyed the centuries-old socioeconomic and sociocultural fabric of society.
- The deaths, mass exodus of Pandits, and increased unemployment eroded the composite way of life and increased boredom, depression, and anxiety among the masses.
How Pakistan’s designs are failing?
- Pakistan-sponsored terrorism is at an all-time low in Jammu and Kashmir, three years after the abrogation of Articles 370 and 35A.
- The number of active militants has fallen from 250 by the end of 2019 to just over 100 by January 2023.
- Security agencies have tried hard to achieve zero terror activities within the Union territory of Jammu and Kashmir and busted 146 terror modules created by Pakistan in 2022.
- As a result, Pakistan’s design to create a culture of violence in the Valley endorsed by self-serving and incestuous political elite under the guise of autonomy for the last 30 years is failing.
Drug strategy of Pakistan in Kashmir
- Strategy serves dual purpose for Pakistan: Now, with the people of Kashmir increasingly relinquishing terrorism and a culture of violence, the drug strategy serves dual purposes for Islamabad. One, to attack the core of the social well-being, and two, to finance terrorism within the Valley.
- Constant infiltration of drugs in the valley: There is a constant infiltration of drugs by Pakistan via the Valley’s Kupwara and Baramulla districts, less-used other drugs such as brown sugar, cocaine, and marijuana are also readily available within the Valley and even in parts of Jammu.
Drug addiction in Kashmir
- Valley is slowly becoming a drug hub: The Kashmir Valley is slowly becoming a drug hub in Northern India, having more than 67,000 drug abusers, of which 90 percent are heroin addicts, using more than 33,000 syringes daily.
- Emerged as country’s top drug affected region: With 2.5 percent of the population using drugs, Kashmir has emerged as the country’s top-drug-affected region, ahead of Punjab, where 1.2 percent of the population is reportedly addicted to drug abuse.
- Residents affected: In November 2022, the state-level narcotic coordination committee meeting chaired by the Chief Sectary revealed that at least six lakh residents were affected by drug-related issues in Jammu and Kashmir.
- Increasing crime rate: Increasing on average, INR 88,000 are spent by a drug abuser in the Valley yearly, increasing Kashmir’s crime rate.
Reasons for this situation
- Collapse of age-old social discipline: A significant reason for such an alarming situation is the near-total collapse of the Valley’s age-old informal social discipline and control mechanisms enforced by village elders.
- Attack on cultural core: Pakistan’s nefarious attack on the Valley’s cultural core has rendered this traditional mechanism of social control ineffective.
- Few contributes in social degradation: The village elders have also often worked hand-in-glove with Pakistan’s evil designs by remaining silent and endorsing the societal degradation.
Jammu and Kashmir police and war against drugs
- Security agencies have trained their focus on drug peddlers: Security agencies in Jammu and Kashmir are known for anti-terror operations. They have successfully created a synergy with the local administration to sabotage Pakistan’s activities and allied forces within the Valley. With Pakistan-sponsored insurgency receding, the security agencies have trained their focus on drug peddlers.
- Security agencies in action: In 2022, under Narcotic Drugs Psychotropic Substances (NDPS) Act, the police registered 1,021 cases and arrested 1700 drug peddlers, including 138 notorious peddlers. During the same time, the security agencies seized enormous quantities of contraband, including 212 kilograms of charas, 56 kilograms of heroin, 13 kilograms of brown sugar, 4.355 tonnes of poppy straw and 1.567 tonnes of fukki.
- Busted narco terror modules: The security agencies also busted many narco-terror modules and arrested 36 persons with huge catches of drugs, arms, ammunition, and money.
- Investigation revealed drugs smuggled from Pakistan: In December 2022, police busted a Pakistan-based narcotics module and arrested 17 persons, including five police officials and some political activists. Investigations revealed that over five kilograms of narcotics valued at INR 5 crore were smuggled from Pakistan in three months.
- Launched Nasha-Mukt Bharat Abhiyan: The local administration has also launched the Nasha-Mukt Bharat Abhiyan an initiative started by the Ministry of Social Justice and Empowerment on 15 August 2020 to eradicate the menace of drug addiction in 272 districts across India. This programme has conducted large-scale awareness programmes in colleges, universities, and within communities.
Way ahead
- The Kashmiri society needs to have an internal interlocution and take a serious look at Pakistan’s policies to foment trouble, especially through narco-terrorism.
- Kashmir’s elders and religious leaders through mosques need to get involved in the war against drugs and guide the youth to engage meaningfully with the spate of developmental activities undertaken by the national and Union territory government following the abrogation of Article 370.
- The government should also initiate and enable public-private partnerships, where local police, military, paramilitary, and citizen bodies act in harmony to make Kashmir free of narco-terror and Pakistan-implemented culture of violence.
Conclusion
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Creating a working synergy between Kashmir’s traditional and formal social control system can go a long way in addressing the drug menace.
Mains question

Q. With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Discuss.

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more
Get an IAS/IPS ranker as your 1: 1 personal mentor