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  • Organ & Tissue Transplant- Policies, Technologies, etc.

    Amendments to Organ Transplant Rules

    17 February 2023 | | Governance
    Mains Paper 2: Health & Education

    organ

    In a major tweak to the organ donation policy, the Union Ministry of Health and Family Welfare said that the clause that people beyond 65 years could not receive cadaver organ transplants had been removed.

    What are the changes introduced?

    (1) No Age Bar

    • Now an individual of any age can register for organ transplant.
    • People beyond 65 years in need of an organ donation will also be eligible to get one.
    • The government has decided to do away with a clause in the National Organ and Tissue Transplant Organisation (NOTTO) guidelines as the clause violates the Right to Life.

    (2) Doing away with domicile compulsion

    • Earlier an organ recipient could register for a prospective transplant in domicile State.
    • States like Gujarat had made it mandatory for registered patients to furnish a domicile certificate to be eligible for a transplant.
    • In November last year, the Gujarat High Court quashed the discriminatory policy of the State government.

    Organ transplant in India: Key statistics

    • According to data accessed from the Health Ministry, the number of organ transplants have increased by over three times from 4,990 in 2013 to 15,561 in 2022.
    • Of the 15,561 transplants, a majority — 12,791 (82%) — are from live donors and 2,765 (18%) are from cadavers (the dead).
    • Up to 11,423 of the 15,561 organ transplants are for the kidney, followed by liver (766), heart (250), lung (138), pancreas (24) and small bowel transplants (3).
    • Most of these transplants occur in private hospitals, the numbers in government hospitals are relatively lower.

    Challenges to Organ Donation in India

    • Lack of awareness: There is a lack of awareness among the general public about the importance of organ donation, the legal framework governing it, and the procedures involved. This can limit the number of potential donors.
    • Cultural beliefs and superstitions: In India, there are several cultural beliefs and superstitions that discourage organ donation. Some people believe that organ donation is against religious beliefs, or that it can impact the soul or afterlife.
    • Lack of infrastructure: India faces a shortage of hospitals and medical facilities that are equipped to handle organ transplantation. This can limit the availability of organs for transplantation.
    • Regulatory bottlenecks: While the legal framework exists, there is a lack of implementation and enforcement of the law. This can lead to issues such as organ trafficking and black market activities.

    Way ahead

    • To address these challenges, the government and other stakeholders are working to raise awareness, improve infrastructure, and strengthen the legal framework governing organ donation.
    • Campaigns and initiatives are being undertaken to educate the public and healthcare professionals about the importance of organ donation, and to dispel myths and misconceptions.
    • Efforts are also being made to improve the infrastructure and facilities for organ transplantation, and to enhance the regulatory framework to prevent illegal activities.
    • These steps are aimed at promoting organ donation and increasing the availability of organs for transplantation, which can save lives and improve the quality of life for many people in India.

    About National Organ Transplant Programme (NOTP)

    • In 2019, the GoI implemented the NOTP for promoting deceased organ donation.
    • Organ donation in India is regulated by the Transplantation of Human Organs and Tissues Act, 1994.

    Types of Organ Donations

    • The law allows both deceased and living donors to donate their organs.
    • It also identifies brain death as a form of death.
    • Living donors must be over 18 years of age and are limited to donating only to their immediate blood relatives or, in some special cases, out of affection and attachment towards the recipient.

    (1) Deceased donors:

    • They may donate six life-saving organs: kidneys, liver, heart, lungs, pancreas, and intestine.
    • Uterus transplant is also performed, but it is not regarded as a life-saving organ.
    • Organs and tissues from a person declared legally dead can be donated after consent from the family has been obtained.
    • Brainstem death is also recognized as a form of death in India, as in many other countries.
    • After a natural cardiac death, organs that can be donated are cornea, bone, skin, and blood vessels, whereas after brainstem death about 37 different organs and tissues can be donated, including the above six life-saving organs

    (2) Living donors:

    They are permitted to donate the following:

    • one of their kidneys
    • portion of pancreas
    • part of the liver

    Features of the NOTP

    • Under the NOTP a National Level Tissue Bank (Biomaterial Centre) for storing tissues has been established at National Organ and Tissue Transplant Organization (NOTTO), New Delhi.
    • Further, under the NOTP, a provision has also been made for providing financial support to the States for setting up of Bio- material centre.
    • As of now a Regional Bio-material centre has been established at Regional Organ and Tissue Transplant Organization (ROTTO), Chennai, Tamil Nadu.

     

    Back2Basics: National Organ and Tissue Transplant Organization (NOTTO)

    NOTTO is a national-level organization set up under the Directorate General of Health Services, Ministry of Health and Family Welfare.

    1.  National Human Organ and Tissue Removal and Storage Network

    2.  National Biomaterial Centre (National Tissue Bank)

    [I] National Human Organ and Tissue Removal and Storage Network

    • This has been mandated as per the Transplantation of Human Organs (Amendment) Act 2011.
    • The network will be established initially for Delhi and gradually expanded to include other States and Regions of the country.
    • Thus, this division of the NOTTO is the nodal networking agency for Delhi and shall network for the Procurement Allocation and Distribution of Organs and Tissues in Delhi.
    • It functions as apex centre for All India activities of coordination and networking for procurement and distribution of Organs and Tissues and registry of Organs and Tissues Donation and Transplantation in the country.

    [II] National Biomaterial Centre (National Tissue Bank)

    • The Transplantation of Human Organs (Amendment) Act 2011 has included the component of tissue donation and registration of tissue Banks.
    • It becomes imperative under the changed circumstances to establish National level Tissue Bank to fulfil the demands of tissue transplantation including activities for procurement, storage and fulfil distribution of biomaterials.
    • The main thrust & objective of establishing the centre is to fill up the gap between ‘Demand’ and ‘Supply’ as well as ‘Quality Assurance’ in the availability of various tissues.

    The centre will take care of the following Tissue allografts:

    1.  Bone and bone products

    2.  Skin graft

    3.  Cornea

    4.  Heart valves and vessels

     

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  • Foreign Policy Watch: India-Afghanistan

    34 years of Soviet Invasion of Afghanistan

    17 February 2023 | | International Relations
    Mains Paper 2: India & Its Neighborhood – Relations

    afghanistan

    Central idea: The article discusses the Soviet Union’s withdrawal from Afghanistan 34 years ago, which marked the end of a nearly decade-long occupation.

    Fun fact:

    “Charlie Wilson’s War” is a 2007 American biographical comedy-drama based on the true story of Charlie Wilson, a former United States Congressman who played a key role in supporting the Afghan mujahideen during the Soviet-Afghan War of the 1980s.

    The film is notable for its depiction of the complex and often murky world of international politics and covert operations. It also highlights the unintended consequences of the US’s support for the Afghan mujahideen, which included the rise of the Taliban and the emergence of al-Qaeda.

     

    Why did the Soviet Union invade Afghanistan?

    • Establish influence: The Soviet Union invaded Afghanistan in December 1979 in an attempt to support a friendly communist government (Saur Revolution) that had seized power in Kabul earlier that year.
    • Prevent radicalization of its southern states: The Soviet Union saw the situation in Afghanistan as an opportunity to extend its influence in the region and to protect its southern borders from Islamic fundamentalism.
    • Countering US influence in Pakistan: The Soviet Union was concerned about the possibility of the United States gaining a foothold in Afghanistan and potentially using it as a base for attacks against the Soviet Union.

    What led to its withdrawal?

    • US-powered rebel groups: The Soviet Union’s occupation of Afghanistan faced fierce opposition from Afghan rebel groups, who were supported by the US and trained by Pakistan hoping that the jihadis would wage war on India and liberate Kashmir.
    • Huge casualties: The conflict turned into a protracted and costly war that lasted almost a decade, with the Soviet Union suffering significant casualties and eventually withdrawing its troops in 1989.
    • Fall of USSR: After the Soviets withdrew from Afghanistan in 1989, the Afghan government, which had been propped up by the Soviet Union, soon collapsed, and the country plunged into a civil war.

    Aftermath: Radicalization of Afghanistan

    • Rise of Taliban: Various factions vied for power, and the Taliban emerged as a dominant force. The Taliban, a hardline Islamist group, took control of the country in 1996 and imposed a strict interpretation of Islamic law. This rule was marked by brutality and oppression, including the widespread use of public executions, amputations, and other forms of punishment.
    • Safe havens for terror: The group provided a safe haven for Al Qaeda, which was responsible for the 9/11 attacks in the US.

    How US came to Afghanistan?

    • In response to the 9/11 attacks, the United States led a coalition of forces in an invasion of Afghanistan in 2001.
    • The Taliban was quickly ousted from power, and a new ‘democratic’ government was established.
    • However, the conflict continued, and the Taliban gradually regained strength, launching attacks on government forces and civilian targets.

    Why did the US left Afghanistan?

    In August 2021, the US completed its withdrawal of troops from Afghanistan, marking the end of a 20-year-long military presence in the country.  It decided to withdraw its troops from Afghanistan for several reasons-

    • Massive cost: The conflict had lasted for two decades, and the United States had spent over $2 trillion on the war effort.
    • Huge casualties: The number of lives lost by the United States in the war in Afghanistan is a matter of debate, but it is estimated that more than 2,400 US military personnel were killed in the conflict.
    • Mission accomplished: The US had achieved many of its initial objectives in Afghanistan, such as dismantling Al Qaeda’s infrastructure and removing the Taliban from power.
    • Foreign policy shift: The withdrawal of US forces was part of a broader shift in US foreign policy towards a focus on great power competition, particularly with China and Russia.
    • America first policy: The US had also sought to end what it saw as “endless wars” in the Middle East and refocus its attention on domestic priorities.

    Assessing Taliban rule now

    Since taking control of Afghanistan in August 2021, the Taliban has taken a number of steps to consolidate its power and impose its ideology on the Afghan people. Some of the ways in which the Taliban has been accused of ruining Afghanistan are:

    • Imposing Sharia: The Taliban is an Islamist extremist group that seeks to impose its strict interpretation of Islamic law on the country.
    • Human rights abuses: The Taliban has been accused of committing widespread human rights abuses, including extrajudicial killings, summary executions, and forced disappearances.
    • Oppression of women: The group has also targeted women and girls, imposing strict dress codes and limiting their access to education and employment.
    • Restrictions on free speech and the press: The Taliban has cracked down on freedom of expression and the press, shutting down independent media outlets and arresting journalists and activists who oppose their rule.
    • Economic and humanitarian crisis: The Taliban’s takeover has caused an economic and humanitarian crisis in Afghanistan, with many people struggling to access basic necessities like food and medical care.
    • International isolation: Many countries have suspended aid and diplomatic relations with Afghanistan, and the UN has expressed concern about the group’s human rights record.

    How is India helping the Afghan people cause?

    India has been actively involved in providing humanitarian aid to the people of Afghanistan, especially in the wake of the Taliban’s return to power. Some of the ways in which India is helping the Afghan people are:

    • Providing food and medical aid: India has sent several consignments of food and medical aid to Afghanistan, including wheat, medicines, and other essential supplies. The aid is being delivered through various channels, including the Afghan Red Crescent Society and the UN.
    • Supporting refugees: India has a long history of providing support to Afghan refugees, and the government has pledged to continue this tradition in the wake of the Taliban’s return to power. India has said it will grant visas to Afghan nationals who are seeking refuge, and the government has also set up a new portal to streamline the visa application process.
    • Diplomatic efforts: India has been working to build international support for the Afghan people, and the government has been in touch with various countries and international organizations to coordinate relief efforts. India has also called for an inclusive political settlement in Afghanistan that respects the rights of all Afghan citizens, including women and minorities.

    Conclusion

    • The situation in Afghanistan is complex and challenging, and there are no easy solutions.

     

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  • Goods and Services Tax (GST)

    Govt. likely to place Reverse Charging of GST on Scrap before Council

    17 February 2023 | Prelims Only | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    gst

    Central idea: The article discusses the possibility of the government presenting the reverse charging of Goods and Services Tax (GST) on Steel and other metal scraps before the GST council.

    Scrap recycling in India

    • India is now the world’s second-largest steel producer, with output expected to increase by 17.8 per cent to 118.1 million tonnes in 2021.
    • In contrast to countries that take pride in using increasing amounts of steel scrap to produce ferrous metal and thus reduce carbon dioxide (CO2) emissions, India only uses about 30 MT of scrap per year.
    • India is still in its early stages, with low recycling awareness. Unfortunately, only 30 per cent of India’s recyclable scrap is recycled.

    What is Reverse Charging of GST?

    • Reverse charging of Goods and Services Tax (GST) is a mechanism in which the liability to pay the tax is shifted from the supplier to the recipient of goods or services.
    • Under normal circumstances, it is the supplier who is liable to pay GST to the government.
    • However, in cases of reverse charging, the recipient of the goods or services becomes liable to pay the tax instead of the supplier.
    • Reverse charging is usually implemented in situations where the supplier is not registered under GST or has failed to deposit the GST dues with the government.
    • Reverse charging is a way for the government to ensure that the GST liability is fulfilled even if the supplier does not fulfill its obligations.

    Some examples of goods and services on which reverse charging is already applied are:

    1. Services provided by a goods transport agency
    2. Services provided by an advocate to a business entity
    3. Supply of manpower for any purpose
    4. Renting of a motor vehicle provided by any individual or HUF to a business entity
    5. Supply of specified goods like gold, silver, or precious stones by an unregistered supplier to a registered person.

    Why scrap industry?

    • The scrap industry in India is a largely unorganized sector, and many small players operate without proper registration or compliance.
    • This has led to tax evasion and revenue losses for the government.
    • Reverse charging on the scrap industry is aimed at plugging this gap and ensuring that the GST liability is fulfilled even if the supplier (in this case, the scrap dealer) is not registered or fails to deposit the GST dues with the government.

    Consequences of the move

    • Compliance Costs: The implementation of reverse charging on the scrap industry may increase compliance costs for stakeholders. Small players in the industry may find it challenging to comply with the new regulations, leading to increased compliance costs.
    • Administrative Burden: The scrap industry in India is largely an unorganized sector, and the application of reverse charging may impose an administrative burden on stakeholders. Many small players may not have the necessary infrastructure or resources to comply with the new regulations.
    • Cash flow impact: Reverse charging could impact the cash flow of small businesses, as they would have to pay GST upfront and then claim it back through input tax credit. This could lead to a shortage of working capital for small businesses.
    • Increased Paperwork: The application of reverse charging on the scrap industry may lead to an increase in paperwork and documentation for stakeholders. This could be challenging for small players who may not have the resources to handle the additional paperwork.
    • Implementation Challenges: The implementation of reverse charging on the scrap industry could be challenging, given that the sector is largely unorganized. It could be challenging to track unregistered players, and the government may face difficulties in enforcing the new regulations.

    Woes of Scrap Industry in India

    • Lack of infrastructure: The scrap industry in India is primarily an unorganized sector, with limited access to infrastructure such as proper storage facilities, transport, and handling equipment. This can limit the efficiency and productivity of the sector.
    • Low productivity: The scrap industry in India faces low productivity due to the use of outdated technology and inadequate skills among workers. This can limit the competitiveness of the industry and its ability to meet the demand for scrap.
    • Inadequate regulatory support: The scrap industry in India lacks adequate regulatory support, which can result in a lack of standardization and transparency in the sector. This can lead to issues such as underreporting of sales, tax evasion, and other malpractices.

    Stakeholder response

    • The scrap industry has expressed concerns over the potential increase in compliance costs and administrative burden that may arise from the implementation of reverse charging.
    • This might affect the recycle economy.

     

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  • Modern Indian History-Events and Personalities

    Tipu Sultan’s Contested Legacy

    17 February 2023 | Prelims Only |
    Mains Paper 1: Modern Indian History

    tipu

    Central idea: The article examines the controversial nature of Tipu Sultan’s legacy and the differing opinions about his reign and his place in Indian history. It discusses the contrasting views of Tipu Sultan as a hero and patriot who fought against British colonialism, or as a tyrant who persecuted Hindus and Christians.

    Rise of Tipu Sultan

    • Tipu Sultan was born on November 10, 1750, in Devanahalli, present-day Bangalore.
    • His father was Hyder Ali, who rose through the ranks of the army of the Wodeyars, the Hindu rulers of Mysore.

    Rise to power

    • Hyder Ali seized power from the Wodeyars in 1761 and ruled for 20 years, a period in which the kingdom of Mysore had slowly expanded by capturing disputed areas at its borders.
    • During this time, Tipu was educated in both matters of statecraft and warcraft, participating in his first battle at the age of only 15.
    • When Hyder Ali died in 1782, Tipu’s primary motivation was to consolidate the territory he had inherited from his father.
    • Specifically, the rebellious provinces of Malabar, Kodagu, and Bednur, were crucial to Mysore’s strategic and economic interests.
    • His rule in these areas is what is often cited as proof of his bigotry and authoritarianism.

    Contribution to freedom struggle

    • In the course of India’s freedom struggle, Tipu Sultan became a symbol of resistance against British rule.
    • His death while defending his fortress of Srirangaptna against British armies in 1799 was valorised as the ultimate sacrifice for the motherland.

    Reforms carried out by Tipu

    Administrative reforms

    • Tipu Sultan also pioneered administrative and economic reforms.
    • He introduced new coins, started a new land revenue system in Mysore, as well as introduced sericulture or silkworm cultivation, which continues to employ many Kannadigas to date.
    • Furthermore, some claim that upon hearing of the plight of lower caste women who were not allowed to wear blouses, Tipu personally supplied them with cloth.

    Modernization of weaponry: Advent of Rockets

    tipu

    • Tipu is credited for the introduction of iron-cased rockets in warfare.
    • While rocket-like weapons had previously been used in War, Tipu’s army used what can be termed as the first modern war rockets in the Anglo-Mysore Wars.
    • These rockets were used to devastating effects against much larger British armies, driving them to panic and disarray.
    • The British used Tipu’s models for their own rockets, which would go on to play an important role in the Napoleonic Wars.

    Scientific temper

    tipu

    • Tipu’s fascination with European culture was a result of what he saw while fighting Europeans.
    • Tipu wanted Mysore to be a modern rival of the European powers and made investments in technology accordingly.

    Why is Tipu branded as a tyrant?

    • Warfare in Tipu’s time was brutal and those who rebelled were dealt with an iron fist. It was common practice to set strong examples to forestall future opposition.
    • The punishments Tipu applied to rebels or conspirators included forced conversion and the transfer of people from their home territories to Mysore.
    • The forced removals occurred from both Kodagu and Malabar, the former as a response to continued resistance against Mysore rule– as a result of their resistance and perceived treachery in the Anglo-Mysore Wars.
    • The right’s narrative of Tipu’s bigotry emphasizes Tipu’s militarism as well as his perceived attacks on “Hindu” rulers and subjects.

    Historian’s justification of Tipu’s actions

    • Tipu’s actions are questionable by today’s standards, they were commonplace in the 18th century among rulers of all faiths.
    • He was a tyrant, but his motivations were not necessarily religious zealotry.
    • Rather, he was a pragmatist who ruled within the accepted conventions of kingship and warfare at the time.
    • He undoubtedly ordered forced conversions in areas he annexed, Tipu also patronized various temples and Hindu shrines, including the Sri Ranganatha temple at Srirangapatna and the Math in Sringeri.
    • Both these actions were to solidify his position as a ruler — the former to crush dissidents and the latter to gain legitimacy among his largely Hindu subjects.

    Tipu’s legacy: looking at the past from the prism of the present

    • Today, there has been an increased spotlight on his autocratic tendencies and brutal repression in annexed territories, with an increased emphasis on his religion.
    • Both portrayals fall short, missing the complexity of Tipu’s character and material circumstances.

     

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  • Modern Indian History-Events and Personalities

    Anti-encroachment drive in historic city of Mehrauli

    17 February 2023 | Prelims Only |
    Mains Paper 1: Modern Indian History

    mehrauli

    The Delhi Development Authority (DDA) carried out an anti-encroachment drive in the nearby villages of Mehrauli and Ladha Sarai leaving hundreds of families in uncertainty about their future.

    History of Delhi

    • Purani Dilli, commonly referred to as Old Delhi, is a misnomer as the city’s history dates back to before the establishment of Shahjahanabad.
    • The oldest evidence of habitation in Delhi, dating back to the Iron Age (around 1100-800 BC), is the painted grey ware fragments found in Purana Quila.
    • Historians recognize seven cities of Delhi, from the 11th century onwards, namely Lalkot/Quila Rai Pithora/Mehrauli, Siri, Tughlaqabad, Firozabad, Shergarh (Old Fort), Shahjahanabad, and New Delhi.
    • However, depending on what is considered a city, this number can be as high as 11.

    In focus: City of Mehrauli

    • Mehrauli is widely considered to be the oldest ‘city’ of Delhi and is the oldest area of the metropolis to be continuously inhabited.
    • It was first built by a ruler called Anangpal II in the 11th century, and it was called Lalkot.
    • Later, it was known as ‘Quila Rai Pithora’ and was fortified by the Chauhans.
    • The Mamluk dynasty took control of the city in 1192, and Qutubudin Aibak, the first ruler of the dynasty, built the Qutub Minar and the Quwwat-al-Islam mosque (oldest mosque in North India).
    • In the following century, more buildings like tombs, step wells, palaces, and fortifications were constructed during the reigns of Iltutmish, Razia Sultan, and Alauddin Khilji.

    Continued relevance and inhabitation

    • Even as the newer cities came up and the seat of power shifted northwards, Mehrauli witnessed building activity as late as the Mughal and British periods.
    • Due to its location on the lap of the Aravallis hills, the area was preferred as a summer retreat.
    • Two Mughal summer palaces (Zafar Mahal and Jahaz Mahal) and a summer abode of Sir Thomas Metcalfe (Dilkhusha) are situated here.
    • Mehrauli lay on a historic trade route, as the number of sarais (Ladho Sarai, Ber Sarai, Neb Sarai) around the area would suggest. A sarai was a resthouse for weary travellers.

    Cultural significance of Mehrauli

    • Mehrauli is also a spiritual centre. Sufi saint Hazrat Qutubuddin Bakhtiar Kaki (1173 -1235 AD) was buried in the city and his dargah remains popular till date, across religious lines.
    • Some historians cite the dargah as a reason for the city surviving the test of time – despite power shifting elsewhere, the dargah remained a revered destination for pilgrims far and wide.
    • Another spiritual centre for the community is the Yogmaya mandir, believed to be one of the oldest in the city.
    • Yoginis (semi-divine deities) have been an integral part of Indian folklore and this temple dedicated to them is believed to have been constructed by the Pandavas.

    How it ended up in encroachments?

    • Like much of the rest of Delhi, the Partition brought many changes to Mehrauli too.
    • Many refugees from the West found sanctuary here. The city has also seen sectarian tensions.

     

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  • RBI Notifications

    Latest spike in Inflation and RBI’s efforts

    16 February 2023 | op-ed snap | Economics
    Mains Paper 3: Indian Economy

    RBI

    Central Idea

    • India’s post-pandemic economic recovery has hit a roadblock with the resurgence of inflation, hindering progress despite three consecutive months of softening. Recent significant spike in inflation, leading the Reserve Bank of India to adopt an inflation-targeting stance by raising interest rates. However, the battle to curb inflation is still ongoing, and the latest data raises doubts about whether the RBI’s efforts are sufficient.

    RBI

    What is Inflation?

    • Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices.
    • Typically, prices rise over time, but prices can also fall (a situation called deflation).

    Consumer Price Index (CPI)

    • CPI is used to monitor changes in the cost of living over time.
    • When the CPI rises, the average Indian family has to spend more on goods and services to maintain the same standard of living.
    • The economic term used to define such a rising prices of goods and services is Inflation.

    RBI

    Inflation outlook

    • RBI’s Inflation target: The inflation targeting framework mandates the RBI to achieve a CPI consumer price index inflation target of 4 per cent.
    • Inflation during the pandemic was still within the target band: During the pandemic period of March 2020 to September 2021, CPI inflation averaged 5.9 per cent. This was higher than the point target of 4 per cent but still within the inflation targeting band of 2-6 per cent.
    • Inflation outlook has been worsening: In 2022, CPI inflation was above the upper threshold of the RBI’s targeting band for 10 consecutive months, which meant the target was not achieved for three quarters in a row.
    • Optimism that the Inflation began softening: By December 2022, CPI inflation was down to 5.7 per cent. This led many to believe that the inflation peak had passed, and that inflation was on its way to the official target.
    • This optimism was misplaced: Underlying inflationary pressures still persist. The softening of inflation in November and December 2022 was largely driven by a steep fall in vegetable prices. Excluding vegetables, CPI inflation was in fact more than 7 per cent.
    • The misplaced optimism has now become evident: The January 2023 CPI inflation came out to be 6.5 per cent, once again crossing the upper threshold of the RBI’s inflation targeting band.

    Back to basics: Core Inflation

    • The core inflation rate measures rising prices in everything except food and energy.
    • That’s because gas prices tend to escalate now and then. Higher gas costs increase the price of food and anything else that has large transportation costs.

    inflation

    What contributed to the latest spike in inflation?

    • Rise in food prices: With food accounting for 46 per cent of the overall CPI basket, a rise in food inflation from roughly 4 per cent in December 2022 to almost 6 per cent in January 2023 has played an important role in overall inflation going up.
    • Cereal inflation is soaring high: Within food, one component that has proved rather stubborn is cereal inflation. Between May and December 2022, year-on-year cereal inflation nearly doubled from 5 per cent to 14 per cent. In January 2023, this increased to 16 per cent. Within cereals, inflation in wheat has been steadily going up. Between May and December 2022, wheat inflation increased from 9 per cent to 22 per cent. It increased even further to 25 per cent in January 2023.
    • The steep rise in wheat prices reflects shortages: Data from the Food Corporation of India shows that stocks in government warehouses declined. The government has recently approved a release of three million tonnes in the open market. However, this is insufficient to restore market supplies.
    • Persistently high core inflation: Second, core (non-food, non-fuel) inflation in January came out to be 6.2 percent. This is consistent with the unyielding core inflation of 6 per cent for nearly three years now. A persistently high core inflation implies that price pressures have become entrenched in the system.
    • External factors also play a role: Inflation in developed countries continues to be high (6.4 per cent in the US; 8.5 per cent in the EU; 10.5 per cent in the UK). India is importing some of this elevated inflation through international trade in goods and services. Moreover, with China gradually opening up its economy after nearly three years of zero-Covid restrictions, commodity prices are likely to go up, which could exert renewed pressures on India’s inflation.

    What have the policymakers been doing to address the inflationary concerns?

    • The government has done its bit by announcing a conservative Union budget for 2023-24: It has accorded primacy to much needed fiscal consolidation, and has refrained from announcing populist measures that could have arguably fuelled demand, and hence inflation.
    • The RBI has been doing its job as well: It increased the policy repo rate from a pandemic low of 4 per cent to 6.5 per cent in a span of 10 months. Unlike last year, when despite rising inflation, the monetary policy statements did not contain any forward guidance, the RBI, in its February 2023 statement, emphasised the importance to remain alert on inflation, thereby hinting that the monetary tightening cycle is not over yet.

    Conclusion

    • Inflation has been a challenge for India’s economy post-pandemic, despite the RBI’s attempt to control it by raising interest rates. A credible glide path to bring inflation down is essential today.

    Mains question

    Q. Despite of RBI’s efforts there is significant spike in inflation In India. Discuss the factors that contributed to the latest spike in inflation in India and what are the policymakers doing to address inflationary concerns?

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  • G20 : Economic Cooperation ahead

    Startup20 Engagement Group On India’s Proposal

    16 February 2023 | op-ed snap | Economics
    Mains Paper 3: Inclusive Growth & Issues

    Engagement

    “A small group of determined and like-minded people can change the course of history.”-M.K. Gandhi

    Central Idea

    • By agreeing to India’s proposal to create the Startup20 Engagement Group, the only new group by which G20 has turned itself into an ambidextrous institution, one where both large corporations and startups have an equal voice in taking the economies forward. In the new architecture, while the existing B20 Engagement Group continues its focus on corporations, the Startup20 takes on the policy issues concerning the global startup ecosystem, with the necessary linkages between the two groups.

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    What is meant by ambidexterity?

    • Ambidexterity is the ability to use both hands with equal skill and ease.
    • In the context of organizations, it is the ability to simultaneously pursue both exploratory and exploitative strategies. This means being able to balance the need for innovation and new opportunities with the need for efficiency and optimization of current operations.
    • For example, Indian IT services companies like TCS and Infosys are investing in areas like artificial intelligence, blockchain, and the IoT, even as they continue to deliver traditional IT services to their clients.

    What is B20 Engagement Group?

    • Official G20 dialogue forum representing the global business community: The B20 (Business 20) Engagement Group is a forum for international business leaders from the G20 countries.
    • Established in 2010: It is among the most prominent Engagement Groups in G20, with companies and business organizations as participants.
    • A single voice for the entire G20 business community: The B20 leads the process of galvanizing global business leaders for their views on issues of global economic and trade governance and speaks in a single voice for the entire G20 business community.
    • Aim is to provide recommendations: The group’s aim is to provide recommendations to the G20 on issues such as economic growth, trade, investment, digitalization, sustainability, and job creation.
    • Platform for different stakeholders: The B20 is one of several engagement groups, which also include groups representing civil society, labor, think tanks, and youth, that provide a platform for different stakeholders to share their views and insights with the G20.
    • B20 Secretariat: Confederation of Indian Industry (CII) has been designated as the Business 20 (B20) Secretariat for the India’s G20 Presidency.

    What is Startup20?

    • Initiated under India’s G20 Presidency: The Startup20 Engagement Group has been initiated under India’s G20 Presidency in 2023.
    • Aims to support Startups: The group aims to create a global narrative for supporting startups and enabling synergies between startups, corporates, investors, innovation agencies and other key ecosystem stakeholders.
    • Three taskforces: The engagement group comprises of three taskforces, namely Foundation & Alliance, Finance, and Inclusion & Sustainability, where delegates will come together to discuss efficient policy frameworks to promote scaling up of startups in the G20 nations.

    How these taskforces will work?

    1. Foundation and Alliances Taskforce:
    • Promotes consensus-based ecosystem: The Foundation and Alliances Taskforce will work to harmonize the global Startup ecosystem through consensus-based definitions and promote a global community of knowledge sharing among the Startup ecosystems to explore opportunities.
    • Help to bridge the knowledge gaps: It will also bridge the knowledge gap between the Startup ecosystems of G20 member countries and emerging economies through partnerships to enable more industry players across G20 nations to work with Startups and concrete solutions.
    • To create supportive policies and point of contact: It will aim to create supportive policies for industry players and government organizations to work with Startups and provide points of contact for the participating G20 countries sustained collaboration.
    1. The Finance Taskforce:
    • To provide financing and investment platforms: The finance taskforce will aim to increase access to capital for Startups by providing financing and investment platforms specifically for early-stage Startups to broaden the array of financial instruments available to Startups.
    • Networking opportunities: It will also create pitching and networking opportunities for Startups with the global investor community.
    • Best practices for funding ecosystem: It will work to provide a framework built upon best practices for global investors to fund Startups across G20 member nations, helping build suggestive frameworks that could be implemented in emerging ecosystems for building investment capabilities.
    1. Taskforce for Inclusion and Sustainability
    • Women led startups and community inclusive: For Inclusion and Sustainability, the roadmap involves increasing support for women led Startups and organizations; promotion of Startups working on making communities more inclusive and to promote Startups working on SDGs in areas of global interest.
    • Encouraging investors to invest in startups built upon sustainable practices: This Task Force aims to enable more investors to invest responsibly in Startups built upon sustainable practices and to encourage mentorship support to the Startup ecosystems of the G20 member countries and emerging economies.

    Conclusion

    • Some of the most pressing challenges facing the world today require innovative solutions at scale. The need for solutions to global problems such as climate change, food security, and energy security is urgent. However, by leveraging global ambidexterity and taking advantage of the G20’s new architecture of B20 and Startup20, we can be optimistic about our ability to systematically solve these problems. With deliberate efforts and focused action, we can create a more sustainable and prosperous future for all.

    Mains question

    Q. What is Startup20 engagement group initiated under India’s G20 presidency? How this framework will work to boost startup ecosystem globally?

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

    Understanding India’s Mental Healthcare Act, 2017

    16 February 2023 | | Governance
    Mains Paper 2: Health & Education

    mental

    Central idea: The article discusses the challenges faced in implementing India’s Mental Healthcare Act, 2017 and the need for better mental healthcare services in the country.

    Mental Healthcare Act, 2017

    The Mental Healthcare Act, 2017 is a comprehensive legislation that provides for the protection and promotion of the rights of people with mental illness.  Some of the key features of the Act are:

    • Decriminalization of suicide: The Act decriminalizes suicide and prohibits the use of inhuman and degrading treatment towards those who attempt suicide.
    • Advance directives: The Act allows individuals to make advance directives, specifying the type of treatment they would like to receive in the event of a mental health issue.
    • Informed consent: The Act mandates that patients have the right to give or refuse consent to treatment, and to be informed about the benefits, side effects, and alternatives of the treatment.
    • Mental health review boards: The Act establishes Mental Health Review Boards at the national and state levels to oversee the implementation of the Act and protect the rights of people with mental illness.
    • Prohibition of inhuman treatment: The Act prohibits the use of inhuman treatment methods, including chaining, electroconvulsive therapy (ECT) without anaesthesia, and solitary confinement.
    • Right to access mental healthcare: The Act guarantees the right to access mental healthcare services, and mandates the establishment of mental health services in every district.
    • Protection of rights and dignity: The Act aims to protect the rights and dignity of people with mental illness, and prohibits discrimination and stigmatization on the basis of mental illness.
    • Establishment of a Central Mental Health Authority: The Act establishes a Central Mental Health Authority to regulate mental health services in the country.

    NHRC flags alert

    • Pity over healthcare institution: The National Human Rights Commission (NHRC) in a report flagged the “inhuman and deplorable” condition of all 46 government-run mental healthcare institutions across the country.
    • Prolonged hospitalization: The report notes that the facilities are “illegally” keeping patients long after their recovery, in what is an “infringement of the human rights of mentally ill patients”.
    • Need for Assessment: These observations were made after visits to all operational government facilities, to assess the implementation of the Mental Healthcare Act, 2017 (MHA).

    Major issue: Lack of implementation

    • Despite the act’s provisions, mental health institutions in India have been plagued by a lack of adequate infrastructure, staff, and training.
    • Patients have reported human rights violations, including abuse, neglect, and violence.

    Need for effective implementation

    • The Mental Healthcare Act needs effective implementation and oversight to ensure that patients receive the care and treatment they need with dignity and respect.
    • This requires increased investment in mental health infrastructure, including facilities, staff, and training.

    Way forward

    • Ensuring proper implementation of the Act: There is a need for proper implementation of this act across the country, with a focus on ensuring the rights and dignity of patients in mental healthcare institutions.
    • Increasing awareness: Awareness needs to be raised about the Act, and the rights of mental healthcare patients among the general public, healthcare professionals, and law enforcement agencies.
    • Providing training and capacity building: Healthcare professionals, including doctors, nurses, and caregivers, need to be trained and equipped with the skills and knowledge to provide quality care and support to mental healthcare patients.
    • Strengthening mental healthcare infrastructure: There is a need to strengthen the infrastructure and facilities in mental healthcare institutions, including better staffing, improved physical facilities, and access to quality medication.
    • Encouraging community-based care: Community-based care for mental health patients can help reduce the burden on mental healthcare institutions and provide a more supportive environment for patients.
    • Promoting human rights: There is a need for greater emphasis on the human rights of mental healthcare patients, including the right to dignity, privacy, and freedom from discrimination and abuse.

     

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

    Industry pushes separate Ministry for Microenterprises

    16 February 2023 | | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Central Idea: The Consortium of Indian Associations (CIA) has suggested the formation of an independent ministry for the self-employed and microenterprises to address specific issues concerning the sector.

    Why demand for new Ministry?

    • Micro entrepreneurs continue to be governed by complicated and outdated laws and dispensable compliance burdens.
    • Despite the government’s efforts, MSMEs in India face several challenges such as access to finance, lack of skilled labor, and inadequate infrastructure.
    • New ministry might help in providing different types of support and benefits from the government, such as access to credit, subsidies, and tax exemptions.

    What are Microenterprises?

    • Microenterprises are small businesses that typically have a small number of employees, limited assets, and low levels of annual turnover or revenue.
    • The term “microenterprise” is often used interchangeably with “microbusiness” or “micro firm.”
    • Microenterprises can be found in a wide range of sectors, including retail, manufacturing, and services.
    • Examples of microenterprises include small retail shops, food stalls, street vendors, small manufacturing units, and service providers such as plumbers, electricians, and small-scale service providers.

    Features of Microenterprises

    • In general, microenterprises are considered the smallest type of business.
    • They are typically characterized by their low capital investment and simple production processes.
    • These businesses are often started by entrepreneurs who are seeking self-employment and a means to earn a livelihood.

    Why are they important?

    • Employability: Microenterprises are an important part of many economies, especially in developing countries, where they can provide vital employment opportunities and contribute to economic growth.
    • Scale of business: Such enterprises have huge potential of business penetration at household and domestic level by providing a range of services.

    Microenterprises in India

    • According to the Ministry of Micro, Small and Medium Enterprises (MSMEs), there are approximately 6.3 crore (63 million) MSMEs in India, which employ around 11 crore (110 million) people.
    • In India, MSMEs are classified based on their investment in plant and machinery or equipment, as well as their annual turnover.
    • The classification of MSMEs is as follows:
    1. Micro Enterprises: Micro enterprises are the smallest type of enterprises and have a lower investment limit than the other two categories. For manufacturing enterprises, the investment limit is up to Rs. 1 crore in plant and machinery, while for service enterprises, the investment limit is up to Rs. 50 lakh. The turnover limit for both types of enterprises is up to Rs. 5 crore.
    2. Small Enterprises: Small enterprises are those that have an investment in plant and machinery or equipment between Rs. 1 crore to Rs. 10 crore. For service enterprises, the investment limit is between Rs. 50 lakh to Rs. 2 crore. The turnover limit for both types of enterprises is between Rs. 5 crore to Rs. 50 crore.
    3. Medium Enterprises: Medium enterprises have a higher investment limit than small enterprises. For manufacturing enterprises, the investment limit is between Rs. 10 crore to Rs. 50 crore, while for service enterprises, the investment limit is between Rs. 2 crore to Rs. 5 crore. The turnover limit for both types of enterprises is between Rs. 50 crore to Rs. 250 crore.

    Various initiatives

    The government of India has taken several initiatives to support the growth of MSMEs in the country, such as:

    • Udyam Portal: The government has introduced a new registration process called Udyam Registration to make it easier for MSMEs to register and avail of various government schemes and benefits.
    • Credit Guarantee Fund Scheme: The Credit Guarantee Fund Scheme provides collateral-free loans to MSMEs from banks and other financial institutions.
    • Cluster Development Programme: The government has launched the Cluster Development Programme to enhance the competitiveness of MSMEs by providing support for infrastructure, technology, and marketing.
    • National SC-ST Hub: The National SC-ST Hub aims to promote entrepreneurship among Scheduled Castes and Scheduled Tribes by providing support for capacity building, market linkages, and access to finance.
    • Technology Upgradation: The government provides financial support to MSMEs for technology upgradation through various schemes such as the Technology Upgradation Fund Scheme and the Credit Linked Capital Subsidy Scheme.

    Way forward

    If the govt. is to consider creating a separate ministry for microenterprises, there are several steps that could be taken to ensure its effectiveness:

    • Defining clear objectives: This should be based on a thorough understanding of the challenges faced by microenterprises and the opportunities available to them.
    • Coordination with other ministries: The new ministry should coordinate with other ministries to ensure that the policies and initiatives developed are aligned with the broader economic and social objectives of the government.
    • Developing policies and initiatives: The ministry should develop policies and initiatives that address the specific needs of microenterprises in India such as access to finance, technology, and markets.
    • Strengthening institutional capacity: The ministry should have a strong institutional capacity to implement policies and initiatives effectively. This could involve recruiting experts in the field of microenterprises and strengthening the capacity of existing institutions.
    • Creating awareness: The ministry should create awareness among microenterprises about the support and services available to them. This could involve organizing workshops and training programs, as well as leveraging digital platforms to disseminate information.

     

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  • J&K – The issues around the state

    Ladakh and the Sixth Schedule

    16 February 2023 | | Polity
    Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    ladakh

    A Ladakhi innovator and engineer completed his five-day “climate fast”, in an effort to draw the attention of leaders to the region’s fragile ecology and to secure its protection under the Sixth Schedule of the Constitution.

    Fast for Ladakh’s Fragile Ecology

    • The fast highlights that Ladakh’s ecology is highly sensitive to climate change, with melting glaciers posing significant risks to the region’s flora, fauna, and people.
    • As a cold desert, Ladakh relies on glaciers to fulfil water needs.
    • However, melting glaciers cause the loss of potable water, threaten agriculture practices, erode sustainable practices, and force locals to migrate.

    About Ladakh

    • Ladakh is a region in the northernmost part of India, bordering China and Pakistan.
    • The region is home to several ethnic groups, including the Ladakhi people, who are predominantly Buddhist.

    Demand for Sixth Schedule in Ladakh

    • There has been a demand from the local tribal communities in Ladakh to extend the provisions of the Sixth Schedule to the region.
    • The demand has been primarily driven by concerns over the protection of tribal rights and the preservation of the unique cultural identity of the local communities.

    Current administration in Ladakh

    • Ladakh was granted Union Territory status in 2019, following the bifurcation of the state of Jammu and Kashmir into two separate Union Territories.
    • The administration of Ladakh is currently governed by the Lieutenant Governor of Ladakh and an elected Ladakh Autonomous Hill Development Council (LAHDC).

    Benefits of Sixth Schedule in Ladakh

    • Meeting tribal aspiration: The Parliamentary standing committee recommended including of Ladakh in the Sixth Schedule because its tribal communities account for 79.61% of its total population.
    • Autonomy and self-governance: The extension of the Sixth Schedule to Ladakh could provide greater autonomy and self-governance to the local tribal communities.
    • Cultural preservation: It could also help to protect the unique cultural identity of the local communities and preserve their traditional practices and customs.

    Challenges to this demand

    • No further fragmentation: The demand to extend the Sixth Schedule to Ladakh has faced some opposition from certain quarters, who argue that it could lead to further fragmentation of the region and create new administrative challenges.
    • Losing political capital: There are also concerns over the potential impact of the demand on the political and administrative structure of the region.

    Conclusion

    • Overall, the demand to extend the provisions of the Sixth Schedule to Ladakh is a complex issue that requires careful consideration of the needs and aspirations of the local tribal communities, as well as the broader political and administrative context of the region.

    Back2Basics: Sixth Schedule of Indian Constitution

    • The Sixth Schedule of the Indian Constitution provides for the administration of tribal areas in the northeastern states of India.
    • These provisions were added to the Constitution in order to protect the rights and interests of the tribal communities in these areas and to promote their social, cultural, and economic development.

    Here’s a summary of the Sixth Schedule of the Indian Constitution:

    Areas covered

    • The Sixth Schedule covers the tribal areas in the states of Assam, Meghalaya, Tripura, and Mizoram.
    • These areas are known as “tribal areas” and are home to a large number of indigenous tribal communities.

    Autonomous district councils

    • The Sixth Schedule provides for the establishment of autonomous district councils in the tribal areas.
    • These councils have the power to make laws and regulations for the governance of their respective areas.
    • They are also responsible for the administration of the local institutions of self-government, such as village councils and traditional councils.

    Composition of district councils

    • The members of the district councils are elected by the people of the respective districts.
    • The councils are headed by a chairman, who is also elected by the members of the council.
    • The district councils have the power to appoint their own staff and to manage their own finances.

    Powers of district councils

    • The district councils have the power to make laws on a range of subjects, including land, forests, water, and fisheries.
    • They also have the power to regulate local markets and to levy taxes and fees on a range of activities.
    • The district councils can also establish and manage schools, hospitals, and other institutions for the benefit of the local communities.

    Protection of tribal rights

    • The Sixth Schedule provides for the protection of the rights of the tribal communities in the areas covered by the schedule.
    • It ensures that the traditional rights and customs of the tribal communities are respected and protected.
    • It also provides for the reservation of seats in the district councils and other local bodies for members of the tribal communities.

     

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