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  • Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

    Fertlizer subsidy issue

    op-ed snap | Agriculture | Mains Paper 3: Agriculture and related issues

    Context

    The global prices of urea, DAP, MOP, phosphoric acid, ammonia and LNG have soared by two to two-and-a-half times in the last year

    Resource richness of Indian agriculture

    • No country has as much area under farming as India.
    • Land under cultivation: At 169.3 million hectares (mh) in 2019, its land used for crop cultivation was higher than that of the US (160.4 mh), China (135.7 mh), Russia (123.4 mh) or Brazil (63.5 mh).
    • Ample water: With its perennial Himalayan rivers and average annual rainfall of nearly 1,200 mm – against Russia’s 475 mm, China’s 650 mm and the US’s 750 mm – India has no dearth of land, water and sunshine to sustain vibrant agriculture.
    • But there’s one resource in which the country is short and heavily import-dependent — mineral fertilisers.

    India’s important dependence

    • In 2021-22, India imported 10.16 million tonnes (mt) of urea, 5.86 mt of di-ammonium phosphate (DAP) and 2.91 mt of muriate of potash (MOP).
    • Import value: In value terms, imports of all fertilisers touched an all-time high of $12.77 billion last fiscal.
    • In 2021-22, India also produced 25.07 mt of urea, 4.22 mt of DAP, 8.33 mt of complex fertilisers (containing nitrogen-N, phosphorus-P, potassium-K and sulphur-S in different ratios) and 5.33 mt of single super phosphate (SSP).
    • Import of raw material: The intermediates or raw materials for the manufacture of these fertilisers were substantially imported.
    • Total value of fertiliser imports: The total value of fertiliser imports by India, inclusive of inputs used in domestic production, was a whopping $24.3 billion in 2021-22.

    Two costs involved in import

    • 1] Foreign exchange outgo for import: The first is foreign exchange outgo:
    • Imports are mostly from the following countries:
    • Urea: Imported from China, Oman, UAE and Egypt
    • DAP: Imported from China, Saudi Arabia and Morocco.
    • MOP: Imported from Belarus, Canada, Russia, Israel and Jordan.
    • LNG: Imported from Qatar, US, UAE and Nigeria.
    • Ammonia: Morocco, Jordan, Senegal and Tunisia (phosphoric acid); Saudi Arabia and Qatar.
    • Rock phosphate: Jordan, Morocco, Egypt and Togo.
    • 2] Fiscal cost: The second cost is fiscal.
    • Fertilisers are not only imported but also sold at subsidised prices.
    • The difference is paid as a subsidy by the government.
    • That bill was Rs 1,53,658.11 crore or $20.6 billion in 2021-22 and projected at Rs 2,50,000 crore ($32 billion) this fiscal.
    • Unsustainably high costs: Both costs are unsustainably high to bear for a mineral resource-poor country.

    Suggestions

    1] Reduce consumption of high-analysis fertilisers

    • There is a need to cap or even reduce consumption of high-analysis fertilisers – particularly urea (46 per cent N content), DAP (18 per cent N and 46 per cent P) and MOP (60 per cent).
    • Incorporate urease and inhibition compounds in urea: This can be done by incorporating urease and nitrification inhibition compounds in urea.
    • These are basically chemicals that slow down the rate at which urea is hydrolysed and nitrified (which increases leaching).
    •  By reducing ammonia volatilisation and nitrate leaching, more nitrogen is made available to the crop, enabling farmers to harvest the same yields with a lesser number of urea bags.
    • Liquid nano-urea: Together with products such as liquid “nano urea” –it is possible to achieve a 20 per cent or more drop in urea consumption from the present 34-35 mt levels.
    • Liquid nano-urea with their ultra-small particle size is conducive to easier absorption by the plants than with bulk fertilisers, translating into higher nitrogen use efficiency.

    2] Promote the sale of SSP and complex fertilisers

    • A second route is by promoting sales of SSP (containing 16 per cent P and 11 per cent S) and complex fertilisers such as “20:20:0:13” and “10:26:26”.
    • Restrict DAP use: DAP use should be restricted mainly to paddy and wheat; other crops don’t require fertilisers with 46 per cent P content. 
    • India can also import more rock phosphate to make SSP directly or it can be converted into “weak” phosphoric acid
    • The latter, having only about 29 per cent P (compared to 52-54 per cent in normal “strong” merchant-grade phosphoric acid), is good enough for manufacturing “20:20:0:13”, “10:26:26” and other low-analysis complex fertilisers.

    3] Incorporate MOP into complexes

    • As regards MOP, roughly three-fourths of the imported material is now applied directly and only the balance is sold after incorporating into complexes.
    • It should be the other way around.
    • India, to re-emphasise, needs to wean its farmers away from all high-analysis fertilisers. 

    4] Use of NPKS complexes and indigenous sources

    • The moment to use more NPKS complexes and SSP, is already happening.
    • It requires a concerted push, alongside popularising high nutrient use-efficient water-soluble fertilisers (potassium nitrate, potassium sulphate, calcium nitrate, etc).
    • Exploiting alternative indigenous sources needs to be considered (for example, potash derived from molasses-based distillery spent-wash and from seaweed extract).

    5] Revise nutrient application recommendations

    • Farmers need to know what is a suitable substitute for DAP and which NPK complex or organic manure can bring down their urea application from 2.5 to 1.5 bags per acre.
    • It calls for agriculture departments and universities not just to revisit their existing crop-wise nutrient application recommendations, but disseminating this information to farmers on a campaign mode.

    Conclusion

    The costs associated with the use of fertilisers are unsustainably high to bear for a mineral resource-poor country such as India. We need to act on the measures to reduce our import dependence.

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    Back2Basics: High-analysis fertilisers

    • Fertilizers that have more than 30% total available nutrients are called high analysis fertilizers, whereas those with less than 30% total available nutrients are called low analysis fertilizers.
    • A 15-15-15 is a high analysis fertilizer; a 5-10-10 is a low analysis fertilizer, and a 10-10-10 is right on the borderline.

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  • Foreign Policy Watch: India-Pacific Island Nations

    Partners in the Blue Pacific (PBP) Initiative

    | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    To reinforce its Indo-Pacific strategy, the US – along with Australia, New Zealand, UK and Japan – announced a new Partners in Blue Pacific (PBP) initiative.

    What is Partners in the Blue Pacific (PBP) initiative?

    • The PBP is a five-nation “informal mechanism” to support Pacific islands and to boost diplomatic, economic ties in the region.
    • It speaks of enhancing “prosperity, resilience, and security” in the Pacific through closer cooperation.
    • It simply means that through the PBP, these counties — together and individually — will direct more resources here to counter China’s aggressive outreach.
    • The initiative members have also declared that they will “elevate Pacific regionalism”, and forge stronger ties with the Pacific Islands Forum.
    • The areas where PBP aims to enhance cooperation include “climate crisis, connectivity and transportation, maritime security and protection, health, prosperity, and education”.

    How is China trying to transform its ties in the Pacific?

    • As China signed a security pact with Solomon Islands in April, the deal flagged serious concerns about the Chinese military getting a base in the southern Pacific.
    • This is very close to the US island territory of Guam, and right next to Australia and New Zealand.
    • The deal, which boosted Beijing’s quest to dominate crucial shipping lanes criss-crossing the region, rattled the US and its allies.
    • It also triggered urgent moves to counter China’s growing Pacific ambition amid a power vacuum fuelled by apparent lack of US attention.

    What is being done by the US and its allies to counter China?

    • Before launching the PBP this month, the US and its partners started the Indo-Pacific Economic Framework for Prosperity (IPEF).
    • Away from the Pacific, the G7 on Monday (June 27) announced a plan — Partnership for Global Infrastructure and Investment (PGII) — to rival China’s BRI.
    • It promises to raise $600 billion to fund development projects in low and middle-income countries.

     

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  • Road and Highway Safety – National Road Safety Policy, Good Samaritans, etc.

    India State Support Programme for Road Safety

    | Governance | Mains Paper 2: Ministries & Departments Of The Government

    The World Bank has approved a $250 million loan to support the Government of India’s road safety programme for seven States.

    Programme for Road Safety

    • Under this, a single accident reporting number will be set up to better manage post-crash events.
    • It will be implemented in the States of Andhra Pradesh, Gujarat, Odisha, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.
    • The $250 million variable spread loan from the International Bank for Reconstruction and Development (IBRD) has a maturity of 18 years, with a grace period of 5.5 years.
    • The project will also establish a national harmonised crash database system in order to analyse accidents and use that to construct better and safer roads.
    • The project will also provide incentives to States to leverage private funding through public private partnership (PPP) concessions and pilot initiatives.

    Road accidents in India: Key takeaways

    • The report ‘Road Accidents in India 2020’ released by the Union ministry of road transport and highways (MoRTH) provides for key stats.
    • India has only 1% of the world’s vehicles but 11% of the global deaths from road accidents occur in India.
    • About 450,000 accidents take place in India annually, of which 150,000 people die.
    • There are 53 road accidents in the country every hour and one death every four minutes.

    Why are there so many road fatalities in India alone?

    • Weak enforcement of traffic laws: People hardly oblige to traffic rules and find easier to bribe policemen rather than paying hefty challans.
    • Speeding issue: More accidents on the highways have been attributed to higher vehicle speeds and higher volume of traffic on these roads.
    • Engineering bottlenecks: Issues such as gaps in the median on the national highways, untreated intersections, and missing crash barriers are some of the biggest engineering issues.
    • Behavioural issue: Driver violations such as wrong-side driving, wrong lane usage by heavy vehicles, and mass violation of traffic lights, intoxication are the biggest behavioural issues.
    • Lack of Golden hour treatment: Lack of rapid trauma care on highways leads to such high fatalities.

    Imbibing road safety: Way forward

    • Road safety education
    • Better road design, maintenance and warning signage
    • Crackdown on driving under influence of alcohol and drugs
    • Strict enforcement of traffic rules
    • Encouraging better road behaviour
    • Ensuring road worthiness of a vehicle
    • Better first aid and paramedic care

    Do you know?

    The ‘golden hour’ has been defined as ‘the time period lasting one hour following a traumatic injury during which there is the highest likelihood of preventing death by providing prompt medical care.

     

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  • Financial Inclusion in India and Its Challenges

    What is Small Savings Scheme?

    Schemes | Economics | Mains Paper 3: Indian Economy

    Economists expect the Centre to raise the interest rates paid on small savings schemes for the July to September 2022 quarter.

    Small Savings Scheme

    • Small Savings Schemes are a set of savings instruments managed by the central government with an aim to encourage citizens to save regularly irrespective of their age.
    • They are popular as they provide returns higher than bank fixed deposits, sovereign guarantee and tax benefits.

    How is it managed?

    • Since 2016, the Finance Ministry has been reviewing the interest rates on small savings schemes on a quarterly basis.
    • All deposits received under various schemes are pooled in the National Small Savings Fund.
    • The money in the fund is used by the Centre to finance its fiscal deficit.

    What are the different saving schemes?

    The schemes can be grouped under three heads –

    1. Post office deposits
    2. Savings certificates and
    3. Social security schemes

    (1) Post Office Deposits

    • Under this we have the savings deposit, recurring deposit and time deposits with 1, 2, 3 and 5 year maturities and the monthly income account.
    • The savings account currently pays an interest of 4% per annum and can be opened individually or jointly with an initial investment of Rs 500.
    • The recurring deposit that pays 5.8% a year compounded quarterly matures after 60 months from the date of opening.
    • It allows investors to save on a monthly basis with a minimum deposit of Rs 100 per month.
    • Investments under the 5-year time deposit up to Rs 1.5 lakh further qualifies for benefit under section 80C of Income Tax Act.

    (2) Savings Certificates

    • Under this, we have the National Savings Certificate and the Kisan Vikas Patra.
    • The National Savings Certificate pays interest at a rate of 6.8% per annum upon maturity after 5 years. The interest that is earned is reinvested into the scheme every year automatically.
    • The NSC also qualifies for tax saving under Section 80C of the income tax act.
    • The Kisan Vikas Patra, which is open to everyone, doubles your one-time investment at the end of 124 months signifying a return of 6.9% compounded annually.
    • The minimum investment amount is Rs 1000 while there is no upper limit.

    (3) Social security schemes

    • In the third head of social security schemes, there is Public Provident Fund, Sukanya Samriddhi Account and Senior Citizens Savings Scheme.

    a. Public Provident Fund

    • The Public Provident Fund is a popular saving option for long term goals like retirement.
    • It pays 7.1% a year and qualifies for tax benefit under Section 80C of the Income Tax Act.
    • Upon maturity of the account after 15 years, it can be extended indefinitely in blocks of 5 years.
    • The accumulated amount and interest earned are exempt from tax at the time of withdrawal.

    b. Sukanya Samriddhi Account

    • The Sukanya Samriddhi Account was launched in 2015 under the Beti Bachao Beti Padhao campaign exclusively for a girl child.
    • The account can be opened in the name of a girl child below the age of 10 years.
    • The scheme guarantees a return of 7.6% per annum and is eligible for tax benefit under Section 80C of the Income Tax Act.
    • The tenure of the deposit is 21 years from the date of opening of the account and a maximum of Rs 1.5 lakh can be invested in a year.

    c. Senior Citizen Savings Account

    • And finally, the 5-year ​​Senior Citizen Savings Account can be opened by anyone who is over 60 years to age.
    • It carries an interest of 7.4% per annum payable quarterly and qualifies for Section 80C tax benefit.
    • These time-tested and safe modes of investments don’t offer quick returns, but are safer when compared to market-linked schemes.

     

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  • Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

    Performance Grading Index for Districts (PGI-D)

    DOMR | Governance | Mains Paper 2: Health & Education

    The Ministry of Education has released the Performance Grading Index for Districts (PGI-D) for 2019 which studied 83 indicators grouped in six categories.

    What is PGI-D?

    • The 83-indicator-based PGI for District (PGI-D) has been designed to grade the performance of all districts in school education.
    • The data is filled by districts through an online portal.
    • The indicator-wise PGI score shows the areas where a district needs to improve.
    • The PGI-D structure comprises a total weightage of 600 points across 83 indicators.
    • They are grouped under 6 categories, viz., Outcomes, Effective Classroom Transaction, Infrastructure Facilities & Students’ Entitlements, School Safety & Child Protection, Digital Learning, and Governance Process.
    • These categories are outcomes, effective classroom transaction, infrastructure facilities and student’s entitlements, school safety and child protection, digital learning and governance process.

    How does the grading scale works?

    • The PGI-D grades the districts into 10 grades with the highest achievable grade being ‘Daksh’, which is for districts scoring more than 90% of the total points in that category or overall.
    • ‘Utkarsh’ category is for districts with score between 81-90%, followed by ‘Ati-Uttam’ (71-80%), ‘Uttam’ (61-70%), ‘Prachesta-I’ (51-60%), ‘Prachesta-II’ (41-50%) and ‘Pracheshta III’ (31-40%).
    • The lowest grade in PGI-D is called ‘Akanshi-3’ which is for scores up to 10% of the total points.

    Performance of the states

    • Rajasthan’s Sikar is the top performer, followed by Jhunjhunu and Jaipur.
    • The other States whose districts have performed best are Punjab with 14 districts in ‘Ati-uttam’ grade (scoring 71-80% on a scale of 100).
    • It followed by Gujarat and Kerala with each having 13 districts in this category.
    • However, there are 12 States and UTs which do not have even a single district in the ‘Ati-uttam’ and ‘Uttam’ categories and these include seven of the eight States from the North East region.

    Significance

    • The PGI-D will reflect the relative performance of all the districts on a uniform scale which encourages them to perform better.
    • It is expected to help the state education departments to identify gaps at the district level and improve their performance in a decentralized manner.

     

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  • G20 : Economic Cooperation ahead

    G-20

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The Jammu and Kashmir administration has constituted a committee to coordinate with the delegates of G-20 countries scheduled to participate in a meeting to be held in the Union Territory (UT) next year.

    Why such move?

    • The participation of the delegates from G-20 countries will be a major boost to the efforts of the Centre to project the situation in J&K as normal.
    • This is especially after J&K’s special constitutional position was ended in 2019.

    What is G-20?

    • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
    • Collectively, the G20 economies account for around 85 percent of the Gross World Product (GWP), 80 percent of world trade.
    • To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
    • In addition to it, the group also hosts separate meetings of the finance ministers and foreign ministers.
    • The G20 has no permanent staff of its own and its chairmanship rotates annually between nations divided into regional groupings.

    Aims and objectives

    • The Group was formed with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
    • The forum aims to pre-empt the balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
    • It seeks to address issues that go beyond the responsibilities of any one organization.

    Members of G20

    The members of the G20 consist of 19 individual countries plus the European Union (EU).

    • The 19 member countries of the forum are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States.
    • The European Union is represented by the European Commission and by the European Central Bank.

    Its significance

    • G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
    • Its members account for more than 80% of global GDP, 75% of trade and 60% of population.

    India and G20

    • India has been a member of the G20 since its inception in 1999.

     

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  • Anti Defection Law

    Political crisis in Maharashtra underscores ineffectiveness of anti-defection law

    | Polity | Mains Paper 2: Parliament & State Legislatures

    Context

    The political crisis in Maharashtra has brought focus back on the anti-defection law. By all accounts, the law has failed to shore up the stability of elected governments.

    About Anti-defection law

    • The Anti-Defection Law under the Tenth Schedule of the Constitution punishes MPs/ MLAs for defecting from their party by taking away their membership of the legislature.
    • It gives the Speaker of the legislature the power to decide the outcome of defection proceedings.
    • It was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM.
    • The law applies to both Parliament and state assemblies.

    How provisions of the law are being thwarted?

    • There are many ways to thwart provisions of the law:
    • The Speaker can sit on the defection pleas for the term of the assembly;
    • The beneficiary party can facilitate accretion of defectors to hit the magic two-thirds threshold.
    • The voters don’t seem to care about punishing the defectors either.

    Is an amendment to the law a solution?

    • Some have thus argued that the way forward is to amend the anti-defection law to fill these lacunae by mandating time-bound decisions by the Speaker and disqualifying defectors from standing for the next election as well.
    • These proposed amendments like the original law want to consolidate power without necessarily putting in the requisite politics.

    Why amendment to the law will not solve the problem

    •  Politicians are adept at subverting institutional processes for their own ends and there are many possibilities for payoff for defectors outside of elected office alone.
    • Moreover, politics has a rich history of exercise of power by proxy and the disqualified representative may simply choose to have a family member stand in their stead.
    •  The anti-defection law and proposed amendments approach the issue of defections from the prism of denying power to the defector, a framing which repeatedly comes up short in the face of a bigger and/or more punitive power.

    Way forward

    • Parties need to project power: Within this framework, if political parties want to resist defections, they must be able to project (imminent) power themselves.
    • Parties need to address organisational issues: At the same time, political parties must address organizational and ideological infirmities which have made them susceptible to mass defections in the first place.
    • Ideological clarity: Political parties need ideological clarity and the ability to attract individuals with a sense of purpose and not love for power alone.
    • This ideological depth if reflected in the party organization and its political programs will give members the ability to withstand lean periods of power.
    • Inner-party democracy: Political parties are failing to create intra-party forums where grievances can be expressed and resolved on an ongoing basis.
    • Internal mechanisms for inner-party democracy – from elections to deliberative forums – are ultimately at the discretion of the party leadership.
    • Scrap anti-defection law: Scrapping the anti-defection law would provide some institutional leverage to express intra-party dissidence and while it may be more chaotic in the short-term would lead to greater stability and political strength in the long-term.
    • Contributed to polarisation: The anti-defection law has undermined not just the very principle of representation but has also contributed to polarization in our country by making it impossible to construct a majority on any issue outside of party affiliation.
    • Avoid ceding political power to the judiciary: Political parties are repeatedly giving primacy to legal instead of political battles since these issues inevitably end up in court.
    • This repeated ceding of political power to the judiciary is a serious deviation from the democratic paradigm and must be checked.

    Conclusion

    Anti-defection law has failed to prevent the defections and subsequent toppings of the several state government. Scrapping it could provide leverage to express intra-party dissidence.

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  • How Hanoi and New Delhi are fortifying defence ties

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    The two countries recently deepened bilateral cooperation with the signing of the Joint Vision Statement on India-Vietnam Defence Partnership towards 2030 during the recent visit of Defence Minister Rajnath Singh to Vietnam.

    About the Joint Vision Statement

    • India and Vietnam Wednesday signed a Joint Vision Statement on India-Vietnam Defence Partnership towards 2030, “which will significantly enhance the scope and scale of existing defence cooperation”.
    • Boosting the scale and scope of defence cooperation: The Joint Vision Statement is aimed at boosting the scope and scale of the existing defence cooperation between the two nations.
    • Mutual logistic support: The two sides also signed a Memorandum of Understanding (MoU) on mutual logistics support.
    • Elevating CSP: This is the first agreement of its kind that Hanoi has entered into with any other country and elevates the standing of Comprehensive Strategic Partnership (CSP) which Hanoi shares with New Delhi since 2016 (along with only Russia and China).

    Enhanced maritime cooperation

    • Both countries find convergence in their approaches towards the maintenance of stability and security of the Indo-Pacific.
    • This approach has translated into diplomatic and political support in the context of developments within the region and manifested in the form of tangible and functional cooperation instruments — the most vital being bilateral defence partnership.
    • Because of the volume of maritime trade that passes through sea lanes of communication in the Indo-Pacific and potential as well as estimated energy reserves in these waters, maritime cooperation between countries in the region have expanded exponentially.

    Emphasis on the cooperative mechanism

    • The enhanced geostrategic prominence and attendant uncertainties vis-à-vis China’s expanding and often abrasive footprints in the Indo-Pacific have resulted in an overall increase in emphasis on cooperative mechanisms and frameworks across the region.
    • Defence partnership between the two countries has been growing steadily following the signing of the Defence Protocol in 2000 and today covers extensive navy-to-navy cooperation.

    Dealing with Chinese transgression

    • Vietnam has and continues to be one of the most vocal countries with respect to China’s periodic transgressions in the South China Sea.
    • Freedom of navigation: In India, Vietnam has found an equally uncompromising partner when it comes to the question of violations of freedom of navigation and threats to sovereign maritime territorial rights as enshrined under international maritime law.
    • New Delhi has supported Vietnam’s position in the South China Sea with respect to Beijing’s destabilising actions and coercive tactics backing by reiterating the irrefutability of the UNCLOS.
    • India has also not backed down from continuing ONGC Videsh Ltd (OVL)’s oil exploration project in Block 128 (which is within Hanoi’s EEZ) despite China’s protests.
    • Emphasis on naval diplomacy: It is also in the last few years that Vietnam has augmented its emphasis on naval diplomacy and strengthened its ties with the US alongside the extension of its engagement with India and other ASEAN members.
    • Despite the fact that the China factor has provided impetus to the solidification of ties, it is also important to consider that mutual cooperation is not driven solely by it.
    • Support in the rubric of Indo-Pacific: Both countries have expanded areas of collaboration and are supportive of each other’s individual and multilateral involvements within the rubric of the Indo-Pacific.

    Conclusion

    Convergences between New Delhi and Hanoi has naturally found expression in bilateral relations and the two countries are poised to develop their partnership further in the coming years.

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    Back2Basics: About UNCLOS

    • UNCLOS is sometimes referred to as the Law of the Sea Convention or the Law of the Sea treaty.
    • It came into operation and became effective from 16th November 1982.
    • It defines the rights and responsibilities of nations with respect to their use of the world’s oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources.
    • It has created three new institutions on the international scene :
      1. International Tribunal for the Law of the Sea,
      2. International Seabed Authority
      3. Commission on the Limits of the Continental Shelf

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  • Modern Indian History-Events and Personalities

    Centre asks firms to arrange Tricolours

    | | Mains Paper 1: Modern Indian History

    Independence Day 2020 | Independence Day: Facts about Indian tricolour that you may have missed | India News

    The Centre has reached out to manufacturers and e-commerce sites to boost the availability of the Tricolour, according to officials aware of the programme.

    Why in news?

    • The Centre is set to launch a large-scale campaign to encourage Indians to fly the National Fag at their homes to mark the 75th Independence Day.
    • The aim of the campaign was to inspire people, rather than carry out a distribution drive.

    How is it made possible?

    • In order to facilitate the campaign, the Union Home Ministry had last year amended the Flag Code, which earlier only allowed hand-woven or hand-spun flags to be made.
    • It has now allowed flags to be polyester and machine-made.

    Do you know?

    Earlier, the display of the national flag was governed by the provisions of The Emblems and Names (Prevention of Improper Use) Act, 1950 and the Prevention of Insults to National Honour Act, 1971.

    What is the Flag Code of India?

    • The Flag Code of India is a set of laws, practices and conventions that apply to the display of the national flag of India.
    • The Code took effect from 26 January 2002 and superseded the “Flag Code-India” as it existed earlier.
    • It permits the unrestricted display of the tricolour, consistent with the honour and dignity of the flag.

    The Flag Code of India has been divided into three parts:-

    • First Part: General Description of the National Flag.
    • Second Part: Display of the National Flag by members of public, private Organisations & educational institutions etc.
    • Third Part: Display of National Flag by Union or State Governments and their organisations and agencies.

    Disposing of the national flag

    • A/c to the Flag Code, such paper flags are not to be discarded or thrown on the ground after the event.
    • Such flags are to be disposed of, in private, consistent with the dignity of the flag.

    Hoisting the national flag is a fundamental right

    • The bench headed by Chief Justice of India V. N. Khare said that under Article 19(1)(a) of the Constitution of India, citizens had the fundamental right to fly the national flag on their premises throughout the year.
    • However, it provided that the premises do not undermine the dignity of the national flag.

    About Prevention of Insults to National Honour Act

    • The law, enacted on December 23, 1971, penalizes the desecration of or insult to Indian national symbols, such as the National Flag, the Constitution, the National Anthem, and the Indian map, as well as contempt of the Constitution of India.
    • Section 2 of the Act deals with insults to the Indian National Flag and the Constitution of India.

    Do you know?

    Article 51 ‘A’ contained in Part IV A i.e. Fundamental Duties asks:

    To abide by the constitution and respect its ideals and institutions, the National Flag and the National Anthem in clause (a).

    Back2Basics: Story of our National Flag

    (1) Public display for the first time

    • Arguably the first national flag of India is said to have been hoisted on August 7, 1906, in Kolkata at the Parsee Bagan Square (Green Park).
    • It comprised three horizontal stripes of red, yellow and green, with Vande Mataram written in the middle.
    • Believed to have been designed by freedom activists Sachindra Prasad Bose and Hemchandra Kanungo, the red stripe on the flag had symbols of the sun and a crescent moon, and the green strip had eight half-open lotuses.

    (2) In Germany

    • In 1907, Madame Cama and her group of exiled revolutionaries hoisted an Indian flag in Germany in 1907 — this was the first Indian flag to be hoisted in a foreign land.

    (3) During the Home Rule Movement

    • In 1917, Dr Annie Besant and Lokmanya Tilak adopted a new flag as part of the Home Rule Movement.
    • It had five alternate red and four green horizontal stripes, and seven stars in the saptarishi configuration.
    • A white crescent and star occupied one top corner, and the other had Union Jack.

    (4) Final version by Pingali Venkayya

    • The design of the present-day Indian tricolour is largely attributed to Pingali Venkayya, an Indian freedom fighter.
    • He reportedly first met Mahatma Gandhi in South Africa during the second Anglo-Boer War (1899-1902), when he was posted there as part of the British Indian Army.
    • Years of research went into designing the national flag. In 1916, he even published a book with possible designs of Indian flags.
    • At the All India Congress Committee in Bezwada in 1921, Venkayya again met Gandhi and proposed a basic design of the flag, consisting of two red and green bands to symbolise the two major communities, Hindus and Muslims.

    (5) During Constituent Assembly

    • On July 22, 1947, when members of the Constituent Assembly of India, the first item on the agenda was reportedly a motion by Pandit Nehru, about adopting a national flag for free India.
    • It was proposed that “the National Flag of India shall be horizontal tricolour of deep saffron (Kesari), white and dark green in equal proportion.”
    • The white band was to have a wheel in navy blue (the charkha being replaced by the chakra), which appears on the abacus of the Sarnath Lion Capital of Ashoka.

     

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

    What does our Current Account Deficit (CAD) show?

    | Economics | Mains Paper 3: Indian Economy

    The data for the country’s current account balance for the fourth quarter of FY 2021-22 shows a decrease in the deficit to 1.5% of gross domestic product (GDP) from 2.6% of GDP in Q3 FY 2021-22.

    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 does Current Account Transaction 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.

    Should a widening CAD worry policymakers?

    • Data shows the trade deficit widened to $24.29 billion in May 2022 from $6.53 billion a year ago.
    • Merchandise exports in May 2022 rose by 20.55% over May 2021, while merchandise imports rose by 62.83%.
    • However, if increasing imports is accompanied by an expansion in industrial production, it is a sign of economic development.
    • Immediately after the covid-19 lockdown, after a long time, the country experienced a current account surplus.

     

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