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

    Does Tropical Ozone Hole exist?

    A new ozone hole has been detected over the tropics, at latitudes of 30 degrees South to 30 degrees North, a recent study claimed. But some experts are divided over this.

    Do you know?

    The Antarctic ozone hole — one of the deepest, largest gap in the ozone layer in the last 40 years — has closed, according to the World Meteorological Organization (WMO).

    What is Ozone and Ozone Layer?

    • An ozone molecule consists of three oxygen atoms instead of the usual two (the oxygen we breathe, O2, makes up 21% of the atmosphere).
    • It only exists in the atmosphere in trace quantities (less than 0.001%), but its effects are very important.
    • Ozone molecules are created by the interaction of ultra-violet (UV) radiation from the Sun with O2 molecules.
    • Because UV radiation is more intense at higher altitudes where the air is thinner, it is in the stratosphere where most of the ozone is produced, giving rise to what is called the ‘ozone layer’.
    • The ozone layer, containing over 90% of all atmospheric ozone, extends between about 10 and 40km altitude, peaking at about 25km in Stratosphere.

    Why need Ozone Layer?

    • The ozone layer is very important for life on Earth because it has the property of absorbing the most damaging form of UV radiation, UV-B radiation which has a wavelength of between 280 and 315 nanometres.
    • As UV radiation is absorbed by ozone in the stratosphere, it heats up the surrounding air to produce the stratospheric temperature inversion.

    What is Ozone Hole?

    • Each year for the past few decades during the Southern Hemisphere spring, chemical reactions involving chlorine and bromine cause ozone in the southern polar region to be destroyed rapidly and severely.
    • The Dobson Unit (DU) is the unit of measure for total ozone.
    • The chemicals involved ozone depletion are chlorofluorocarbons (CFCs for short), halons, and carbon tetrachloride.
    • They are used for a wide range of applications, including refrigeration, air conditioning, foam packaging, and making aerosol spray cans.
    • The ozone-depleted region is known as the “ozone hole”.

    Tropical Ozone Hole

    • According to the study, the ozone hole is located at altitudes of 10-25 km over the tropics.
    • This hole is about seven times larger than Antarctica, the study suggested.
    • It also appears across all seasons, unlike that of Antarctica, which is visible only in the spring.
    • The hole has become significant since the 1980s. But it was not discovered until this study.

    What caused an ozone hole in the tropics?

    • Studies suggested another mechanism of ozone depletion: Cosmic rays.
    • Chlorofluorocarbon’s (CFC) role in depleting the ozone layer is well-documented.
    • The tropical stratosphere recorded a low temperature of 190-200 Kelvin (K).
    • This can explain why the tropical ozone hole is constantly formed over the seasons.

    Significance of the finding

    • The tropical ozone hole, which makes up 50 percent of Earth’s surface, could cause a global concern due to the risks associated with it.
    • It is likely to cause skin cancer, cataracts and other negative effects on the health and ecosystems in tropical regions.

    Back2Basics: Antarctic Ozone Hole

    • The Antarctic “ozone hole” was discovered by British Antarctic Survey scientists Farman, Gardiner and Shanklin in 1985.
    • It was caused by the chemical reactions on polar stratospheric clouds (PSCs) in the cold Antarctic stratosphere caused a massive.
    • Though localized and seasonal, an increase in the amount of chlorine present in active, ozone-destroying forms.

    Role of PSCs

    • The polar stratospheric clouds in Antarctica are only formed when there are very low temperatures, as low as −80 °C, and early spring conditions.
    • In such conditions, the ice crystals of the cloud provide a suitable surface for the conversion of unreactive chlorine compounds into reactive chlorine compounds, which can deplete ozone easily.

     

    Try this PYQ

    Q.Consider the following statements:

    Chlorofluorocarbons, known as ozone-depleting substances are used:

    1. In the production of plastic foams
    2. In the production of tubeless tyres
    3. In cleaning certain electronic components
    4. As pressurizing agents in aerosol cans

    Which of the statements given above is/are correct?

    (a) 1, 2 and 3 only

    (b) 4 only

    (c) 1, 3 and 4 only

    (d) 1, 2, 3 and 4

     

    Post your answers here.

     

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  • Foreign Policy Watch: India-SCO

    Iran, Belarus to be newest SCO Members

    Iran and Belarus are likely to be the two newest additions to the China and Russia-backed Shanghai Cooperation Organisation (SCO) grouping.

    What is SCO?

    Shanghai Cooperation Organisation (SCO): a Formidable Alliance and its Significance for India - Olive Greens Institute Blog- Olive Greens Institute SSB | NDA | CDS

    • After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
    • The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
    • The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
    • Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
    • The fight against the “three evils” of terrorism, separatism and extremism has become its mantra. Today, areas of cooperation include themes such as economics and culture.

    India’s entry to the SCO

    • India and Pakistan both were observer countries.
    • While Central Asian countries and China were not in favor of expansion initially, the main supporter — of India’s entry in particular — was Russia.
    • A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
    • From 2009 onwards, Russia officially supported India’s ambition to join the SCO in 2017.
    • China then asked for its all-weather friend Pakistan’s entry.

    Why expand now?

    • China and Russia are looking to frame the grouping as a counter to the West — particularly after Russia’s invasion of Ukraine.
    • China wishes to draw a sharp contrast between the SCO and NATO.

    Changing narrative of SCO

    • There has been discussion in the international arena that the trend of non-alignment is back.
    • NATO is based on Cold War thinking.
    • The logic of NATO is creating new enemies to sustain its own existence.
    • However, SCO is a cooperative organisation based on non-alignment and not targeting a third party.

    India and SCO: Present status

    • India will host the SCO summit next year, and Varanasi has been selected as the SCO region’s first “Tourism and Cultural Capital”.
    • India will also be chairing the summit.

    Try this PYQ now:

    In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?

     

    (a) United Nations Environment Programme

    (b) World Trade Organization

    (c) ASEAN- India Free Trade Agreement

    (d) G-20 Summits

     

    Post your answers here.

     

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  • Government Budgets

    Public Capex Plan key to long-term growth: FM

    Finance Minister said India’s long-term growth prospects were embedded in public capital expenditure programs.

    What is the news?

    • FM has raised capital expenditure (capex) by 35.4% for the financial year 2022-23 to ₹7.5 lakh crore to continue the public investment-led recovery of the pandemic-battered economy.
    • The capex last year was ₹5.5 lakh crore.

    What is Capital Expenditure (Capex)?

    • The government’s expenditure is categorized into two:
    1. The one which results in asset development or acquisition known as CAPEX,
    2. Another is utilized to cover operating costs and obligations but does not result in asset creation known as Revenue expenditure.
    • Capex is defined the as money spent on the acquisition of assets such as land, buildings, machinery, and equipment, as well as stock investments.

    What attributes to capex?

    • The portion of government payments that goes toward the construction of assets such as schools, colleges, hospitals, roads, bridges, dams, railway lines, airports, and seaports amounts to capex.
    • The acquisition of new weaponry and weapon systems, such as missiles, tanks, fighter planes, and submarines, necessitates a significant financial outlay.
    • The defense sector receives over a third of the central government’s capital spending, primarily for armament acquisitions.
    • Despite the fact that defense spending is classified as a capital expenditure, it does not result in the development of infrastructure to support economic growth.
    • Also includes investments that will produce earnings or dividends in the future.

    Significance of Capex

    • Economic recovery: This action is crucial in light of the economic slowdown induced by the Covid-19 epidemic, as well as a dip in the employment ratio.
    • Value creation: Capital asset formation provides future cash flows for the economy and contributes to value creation.
    • Multiplier Effect: Capex is expected to have a Multiplier Effect (a change in rupee value of output with respect to a change in rupee value of expenditure).
    • Increased employment: Capital spending creates jobs and improves labor productivity as a result of the multiplier effect.
    • Macroeconomic Stabilizer: Capital Expenditure serves as a macroeconomic stabilizer and is an excellent instrument for countercyclical fiscal policy.

     

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Rise in Unvaccinated Children in India

    The number of children in India who were unvaccinated or missed their first dose of diphtheria-tetanus-pertussis (DTP) combined vaccine doubled due to the pandemic, rising from 1.4 million in 2019 to 2.7 million in 2021, according to official data published by the WHO and UNICEF.

    Why in news?

    • This data signifies that the world recorded the largest sustained decline in childhood vaccinations in approximately 30 years.
    • There was an increase in zero dose.
    • This is the first time ever there has been a decline in evaluated coverage in immunisation for India as a whole.

    Vaccination measures in India

    • Intensified Mission Indradhanush (IMI) 4.0: India started IMI 4.0 from February 2022, which is expected to further reduce the number of unvaccinated children.
    • India’s Universal Immunisation Programme (UIP): It provide free vaccines to all children across the country to protect them against Tuberculosis, Diphtheria, Pertussis, Tetanus, Polio, Hepatitis B, Pneumonia and Meningitis due to Haemophilus Influenzae type b (Hib), Measles, Rubella, Japanese Encephalitis (JE) and Rotavirus diarrhoea. (Rubella, JE and Rotavirus vaccine in select states and districts).

    About Intensified Mission Indhradhanush (IMI) 4.0

    • IMI 4.0 aims to fill gaps in the routine immunisation coverage of infants and pregnant women hit by the Covid-19 pandemic and also aims to make lasting gains towards Universal Immunization.
    • It will have three rounds and will be conducted in 416 districts across 33 states.
    • Unlike the past, each round under IMI 4.0 will be conducted for seven days, including Routine Immunization (RI) days, Sundays, and public holidays.

    Mission Indradhanush (MI)

    • Mission Indradhanush (MI) was launched in 2014 with the goal to ensure full immunization with all available vaccines under Universal Immunization Programme (UIP) for children up to two years of age and pregnant women.
    • It targets achieving 90% full immunization coverage in all districts.
    • Under MI, all vaccines under the Universal Immunization Program (UIP) are provided as per National Immunization Schedule.
    • UIP provides free vaccines against 12 life-threatening diseases, mentioned above.

    Back2Basics: Universal Immunisation Programme

    • The Expanded Programme on Immunization was launched in 1978.
    • It was renamed as UIP in 1985 when its reach was expanded beyond urban areas.
    • UIP is one of the largest public health programmes targeting close to 2.67 crore newborns and 2.9 crore pregnant women annually.
    • Under UIP, Immunization is provided free of cost against 12 vaccine-preventable diseases.
    • The two major milestones of UIP have been the elimination of polio in 2014 and maternal and neonatal tetanus elimination in 2015.
    • To speed up the coverage, Mission Indradhanush was planned and implemented to rapidly increase the full coverage to 90%.

     

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  • Land Reforms

    Political tussle over Podu Cultivation and Forest Lands in Telangana

    Activists have taken up the issue of Podu cultivation of adivasis and tribals in forest areas in Telangana.

    What one means by Podu?

    • Podu is a traditional system of cultivation used by tribes in India, whereby different areas of jungle forest are cleared by burning each year to provide land for crops.
    • It is a form of shifting agriculture using slash-and-burn methods. The word comes from the Telugu language.
    • Traditionally used on the hill-slopes of Andhra Pradesh, it is similar to the jhum method found in north-east India and the bewar system of Madhya Pradesh.

    What is the ‘Podu’ Land Issue?

    • The Telangana government had decided in 2021 to move landless, non-tribal farmers engaged in shifting cultivation inside forests to peripheral areas in an effort to combat deforestation.
    • It ensured that all steps would be taken to ensure that forest land was not encroached upon.
    • It is observed that podu progressively degrades large areas of the forest.

    Shifting cultivation in India

    • In this type of agriculture, first of all a piece of forest land is cleared by felling trees and burning of trunks and branches.
    • After the land is cleared, crops are grown for two to three years and then the land is abandoned as the fertility of the soil decreases.
    • The farmers then move to new areas and the process is repeated.
    • Dry paddy, maize, millets and vegetables are the crops commonly grown in this type of farming.

    This practice is known by different names in different regions of India:

    1. Jhum in Assam,

    2. Ponam in Kerala,

    3. Podu in Andhra Pradesh and Odisha and

    4. Bewar masha penda and Bera in various parts of Madhya Pradesh.

     

    What TS has to offer as alternative to Podu?

    • To stop this deforestation, the government wants to move out cultivators from deep inside forests to the periphery by allotting them land for cultivation.
    • Tribal farmers who have been traditionally cultivating for decades would not be affected by this drive against illegal encroachers.
    • The land ownership titles have been given to tribals and more than 3 lakh acres have been allocated to tribal farmers state-wide.

    And what about non-tribal farmers?

    • These farmers can apply to the state government to allocate them land outside the forests.
    • Those who are moved out of the forests would be given land ownership certificates, power and water supplies and Rythu Bandhu benefits.

    Back2Basics: Rythu Bandhu

    • Rythu Bandhu is a scheme under which the state government extends financial support to land-owning farmers at the beginning of the crop season through direct benefit transfer.
    • The scheme aims to take care of the initial investment needs and do not fall into a debt trap.
    • This in turn instills confidence in farmers, enhances productivity and income, and breaks the cycle of rural indebtedness.

    DBT under the Scheme

    • Each farmer gets Rs 5,000 per acre per crop season without any ceiling on the number of acres held.
    • So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
    • The grant helps them cover the expenses on input requirements such as seeds, fertilizers, pesticides, and labor.

     

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  • Draft disability policy

    Context

    The Department of Empowerment of Person with Disabilities (DoEPwD) recently released the draft of the national policy for persons with disabilities.

    Why new policy?

    • Signing of UN convention: The necessity for a new policy which replaces the 2006 policy was felt because of multiple factors such as India’s signing of the United Nations Convention on Rights of Persons with Disabilities.
    • Increased number of disabilities: Enactment of Rights of Persons with Disabilities Act 2016, which increased the number of disabilities from seven conditions to 21 necessitated the change.
    • Incheon Strategy: Being a party to the Incheon Strategy for Asian and Pacific Decade of Persons with Disabilities, 2013-2022 (“Incheon commitment”).
    • Changed discourse from medical model to human right: These commitments have changed the discourse around disability by shifting the focus from the individual to society, i.e., from a medical model of disability to a social or human rights model of disability.
    • The principle of the draft policy is to showcase the Government’s commitment to the inclusion and empowerment of persons with disabilities by providing a mechanism that ensures their full participation in society.

    Absence of commitment to political uplift

    • Article 29 of the Convention on Rights of Persons with Disabilities mandates that state parties should “ensure that persons with disabilities can effectively and fully participate in political and public life on an equal basis with others, directly or through freely chosen representatives….”
    • The Incheon goals also promote participation in political processes and in decision making.
    • The Rights of Persons with Disabilities Act 2016 embodies these principles within its fold.
    • India does not have any policy commitment that is aimed at enhancing the political participation of disabled people.
    • The exclusion of disabled people from the political space happens at all levels of the political process in the country, and in different ways.
    • Section 11 of the Rights of Persons with Disabilities Act prescribes that “The Election Commission of India and the State Election Commissions shall ensure that all polling stations are accessible to persons with disabilities and all materials related to the electoral process are easily understandable by and accessible to them”.
    • Although this mandate has been in existence for a few years, the disabled people still report accessibility issues before and on election day. 
    • There is often a lack of accessible polling booths in many locations.
    • Lack of aggregate data: The lack of live aggregate data on the exact number of the disabled people in every constituency only furthers their marginalisation.

    Lack of representation

    • Representation plays an imperative role in furthering the interests of the marginalised community.
    • Disabled people are not represented enough at all three levels of governance.
    • However, few States have begun the initiative at local levels to increase participation.
    • For instance, Chhattisgarh started the initiative of nominating at least one disabled person in each panchayat.
    • If a disabled person is not elected then they are nominated as a panchayat member as per changes in the law concerned.
    • This is a step that has increased the participation of the disabled in the political space at local level.
    • The goal of the policy document — of inclusiveness and empowerment — cannot be achieved without political inclusion.

    Suggestions: Follow four pronged approach

    • The policy can follow a four-pronged approach:
    • 1] Capacity building: Building the capacity of disabled people’s organisations and ‘empowering their members through training in the electoral system, government structure, and basic organisational and advocacy skills’;
    • 2] Legal and regulatory framework: The creation, amendment or removal of legal and regulatory frameworks by lawmakers and election bodies to encourage the political participation of the disabled;
    • 3] Participation of civil society: Inclusion of civil societies to ‘conduct domestic election observation or voter education campaigns’;
    • 4] Framework for outreach by political parties: A framework for political parties to ‘conduct a meaningful outreach to persons with disabilities when creating election campaign strategies and developing policy positions’.

    Conclusion

    The document lays emphasis on the point that central and State governments must work together with other stakeholders to “make the right real”. This right can be made real only when it includes political rights/political participation within it.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Parliamentary language in the digital age

    Context

    Language not only changes across region but also profession. Similarly, Parliament, too, has its own list of absurd and archaic phrases.

    Debate over expunged words

    • Today there is much debate on language again after the Lok Sabha Secretariat compiled a list of 151 words, which have been expunged in 2021 and 2020 in Parliaments across the Commonwealth countries and State Assemblies in India.
    • Many of these words may look harmless, but in a heated exchange between parliamentarians, they may not exactly be virtuous.
    • The current compilation has especially caused consternation among Opposition parties which see this as an attempt to restrict their vocabulary.
    • The government argues that this list is at best only “instructive” and not “definitive”.
    • The preface of the document states that the context in which these words were used is far more important than the words themselves.
    • Ultimately, the final call of whether a word is “unparliamentary” or not lies with the presiding officer of the House.
    • In the first two decades of the Indian Parliament, English was the primary language used for parliamentary work.
    • This changed as the social composition of Parliament changed from the 1970s onwards.
    • At present, as many as 30 languages are used by parliamentarians during speeches, with many insisting on speaking their mother tongue during crucial debates.
    • Perhaps, the next such compilation will also have words expunged from different regional languages.

    Challenges in digital age

    •  The proceedings of both Houses of Parliament are relayed in real time on TV channels and YouTube.
    • There have been instances where live transmission has been halted on the Chair’s orders.
    • To circumvent this, many members have recorded the proceedings on their mobile phone cameras.
    • There are many instances of the Chair intervening and expunging words or phrases that it finds “objectionable”.
    • Herein lies the problem. The order of the Chair is often relayed by late evening to reporters, but by then, the video clip would have already been circulated many times over.
    • Print reporters are careful and abide by the orders, but in a digital ecosystem, this is not easy.

    Conclusion

    The problems posed to the Parliament in terms of language and words should be dealt with keeping in focus the freedom of speech of the members.

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  • Freedom of Speech – Defamation, Sedition, etc.

    Fundamental Duties

    The Supreme Court has allowed the Centre’s request for two months’ time to file a reply to a petition seeking the enforcement of fundamental duties of citizens, including patriotism and unity of nation, through “comprehensive, and well-defined laws”.

    Why in news?

    • The need to enforce fundamental duties arises due to new illegal trend of protest by protesters in the garb of freedom of speech and expression.
    • Vandalism, blocking of road and rail routes in order to compel the government to meet their demands is a sheer violation of the FDs which are generally not enforceable.

    What are Fundamental Duties?

    • The fundamental duties of citizens were added to the constitution by the 42nd Amendment in 1976, upon the recommendations of the Swaran Singh Committee.
    • It basically imply the moral obligations of all citizens of a country and today, there are 11 fundamental duties in India, which are written in Part IV-A of the Constitution, to promote patriotism and strengthen the unity of India.
    • The FDs obligate all citizens to respect the national symbols of India, including the constitution, to cherish its heritage, preserve its composite culture and assist in its defence.
    • They also obligate all Indians to promote the spirit of common brotherhood, protect the environment and public property, develop scientific temper, abjure violence, and strive towards excellence in all spheres of life.

    Judicial interpretation of FDs

    • The Supreme Court has held that FDs are not enforceable in any Court of Law.
    • It ruled that these fundamental duties can also help the court to decide the constitutionality of a law passed by the legislature.
    • There is a reference to such duties in international instruments such as the Universal Declaration of Human Rights and International Covenant on Civil and Political Rights, and Article 51A brings the Indian constitution into conformity with these treaties.

    Total FDs

    • Originally ten in number, the fundamental duties were increased to eleven by the 86th Amendment in 2002.

    The 10 fundamental duties are as follows:

    1. To oblige with the Indian Constitution and respect the National Anthem and Flag
    2. To cherish and follow the noble ideas that inspired the national struggle for freedom
    3. To protect the integrity, sovereignty, and unity of India
    4. To defend the country and perform national services if and when the country requires
    5. To promote the spirit of harmony and brotherhood amongst all the people of India and renounce any practices that are derogatory to women
    6. To cherish and preserve the rich national heritage of our composite culture
    7. To protect and improve the natural environment including lakes, wildlife, rivers, forests, etc.
    8. To develop scientific temper, humanism, and spirit of inquiry
    9. To safeguard all public property
    10. To strive towards excellence in all genres of individual and collective activities

    The 11th fundamental duty which was added to this list is:

    1. To provide opportunities for education to children between 6-14 years of age, and duty as parents to ensure that such opportunities are being awarded to their child. (86th Amendment, 2002)

     

    Try this PYQ:

    Which of the following is/are among the Fundamental Duties of citizens laid down in the Indian Constitution?

    1. To preserve the rich heritage of our composite culture
    2. To protect the weaker sections from social injustice
    3. To develop the scientific temper and spirit of inquiry
    4. To strive towards excellence in all spheres of individual and collective activity.

    Select the correct answer using the codes given below:

    (a) 1 and 2 only

    (b) Only 2

    (c) 1, 3 and 4 only

    (d) 1, 2, 3 and 4

     

    Post your answers here.

     

     

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  • Crop Insurance – PMFBY, etc.

    Pradhan Mantri Fasal Bima Yojana (PMFBY)

    Andhra Pradesh has decided to rejoin the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season.

    Why in news?

    • Andhra Pradesh was one of six states that have stopped the implementation of the scheme over the last four years.
    • The other five, which remain out, are Bihar, Jharkhand, West Bengal, Jharkhand, and Telangana.

    What is PMFBY?

    • The PMFBY was launched in February 2016. It is being administered by Ministry of Agriculture.
    • It provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
    • It is implemented by general insurance companies.

    Its functioning

    • PMFBY insures farmers against all non-preventable natural risks from pre-sowing to post-harvest.
    • Farmers have to pay a maximum of 2 per cent of the total premium of the insured amount for kharif crops, 1.5 per cent for rabi food crops and oilseeds as well as 5 per cent for commercial / horticultural crops.
    • The balance premium is shared by the Union and state governments on a 50:50 basis and on a 90:10 basis in the case of northeastern states.

    Farmers covered

    • All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
    • Earlier to Kharif 2020, the enrolment under the scheme was compulsory for following categories of farmers:
    1. Farmers in the notified area who possess a Crop Loan account/KCC account (called as Loanee Farmers) to whom credit limit is sanctioned/renewed for the notified crop during the crop season. and
    2. Such other farmers whom the Government may decide to include from time to time.

    Risks covered under the scheme

    • Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado.
    • Risks due to Flood, Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered.
    • Post-harvest losses coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field.
    • For certain localized problems such as loss/damage resulting from the occurrence of identified localized risks like hailstorm, landslide, and Inundation affecting isolated farms in the notified area would also be covered.

    Why many states has opted out?

    The opting-out states had mentioned several reasons:

    • The scheme should be voluntary.
    • States should be given options to choose the risks covered and the scheme should be universal.
    • State should be given option to use their own database of E-crop, an application used by the state government to collect information about crops.
    • Many state government wanted zero premium for farmers (meaning the entire premium should be paid by the government.
    • The non-payment of the State Share of premium subsidy within the prescribed timelines as defined in the seasonality discipline lea to the disqualification of the State Government.
    • The reason for West Bengal not implementing the PMFBY is purely “political” as it wants to implement the scheme without mentioning Pradhan Mantri in the name.

    How was the scheme structured, and what has changed since?

    • Initially, the scheme was compulsory for loanee farmers; in February 2020, the Centre revised it to make it optional for all farmers.
    • Now states and UTs are free to extend additional subsidy over and above the normal subsidy from their budgets.
    • In February 2020, the Centre decided to restrict its premium subsidy to 30% for unirrigated areas and 25% for irrigated areas (from the existing unlimited). Earlier, there was no upper limit.
    • Food crops (cereals, millets and pulses); oilseeds; and annual commercial / annual horticultural crops are broadly covered under the scheme.

     

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Increase in Current Account Deficit (CAD)

    The Finance Ministry has asserted that the current account deficit (CAD) could, however, deteriorate this year mainly due to rising trade deficits.

    What is Current Account Deficit (CAD)?

    • A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
    • This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
    • A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.

    Components of Current Account

    Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers

    (1) Trade Deficit

    • Trade Deficit = Imports – Exports
    • A Country is said to have a trade deficit when it imports more goods and services than it exports.
    • Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
    • A trade deficit represents an outflow of domestic currency to foreign markets.

    (2) Net Income

    • Net Income = Income Earned by MNCs from their investments in India.
    • When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
    • This foreign investment can help a country’s economy grow. But if foreign investors worry they won’t get a return in a reasonable amount of time, they will cut off funding.
    • Net income is measured by the following things:
    1. Payments made to foreigners in the form of dividends of domestic stocks.
    2. Interest payments on bonds.
    3. Wages paid to foreigners working in the country.

    (3) Net Transfers

    • In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners.
    • It Includes Remittances, Gifts, Donation etc

    How Current Account Transaction does takes place?

    • While understanding the Current Account Deficit in detail, it is important to understand what the current account transactions are.
    • Current account transactions are transactions that require foreign currency.
    • Following transactions with from which component these transactions belong to :
    1. Component 1 : Payments connection with Foreign trade – Import & Export
    2. Component 2 : Interest on loans to other countries and Net income from investments in other countries
    3. Component 3 : Remittances for living expenses of parents, spouse and children residing abroad, and Expenses in connection with Foreign travel, Education and Medical care of parents, spouse and children

    What has been the recent trend?

    • In Q4 FY 2021-22, CAD improved to 1.5% of GDP or $13.4 billion from 2.6% of GDP in Q3 FY 2021-22 ($22.2 billion).
    • The difference between the value of goods imported and exported fell to $54.48 million in Q4FY 2021-22 from $59.75 million in Q3 FY2021-22.
    • However, based on robust performance by computer and business services, net service receipts rose both sequentially and on a year-on-year basis.
    • Remittances by Indians abroad also rose.

    What are the reasons for the current account deficit?

    • Intensifying geopolitical tensions and supply chain disruptions leading to crude oil and commodity prices soaring globally have been exerting upward pressure on the import bill.
    • A rise in prices of coal, natural gas, fertilizers, and edible oils have added to the pressure on trade deficit.
    • However, with global demand picking up, merchandise exports have also been rising.

    How will a large CAD affect the economy?

    • A large CAD will result in demand for foreign currency rising, thus leading to depreciation of the home currency.
    • Nations balance CAD by attracting capital inflows and running a surplus in capital accounts through increased foreign direct investments (FDI).
    • However, worsening CAD will put pressure on inflow under the capital account.
    • Nevertheless, if an increase in the import bill is because of imports for technological upgradation it would help in long-term development.

     

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