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  • 8th Nov| Daily Answer Writing Enhancement

    Topics for Today’s questions:

    GS-1           Population and associated issues

    GS-2           Constitution of India- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

    GS-3          Government Budgeting.

    GS-4          Aptitude and foundational values for Civil Service, integrity, impartiality and non-partisanship, objectivity, dedication to public service, empathy, tolerance and compassion towards the weaker sections.

    Question 1)

     

    Q.1 Conducting a caste census is important for better targeting of welfare services; however, such an exercise is fraught with challenges to social harmony and risks polarization. Discuss. (15 Marks)

     

    Question 2)

    Q.2 Do you think time has come for the implementation of Uniform Civil Code (UCC) in the country? What are the arguments against it? (10 Marks)

    Question 3)

    Q.3 Instances have come to light where states with highest debt-to-GDP levels take fiscally profligate actions. In this regard, analyse how fiscal devolution is causing a lack of state-level fiscal responsibility and what needs to be done to improve it? (10 Marks)

    Question 4)  

    Q.4 Discussing the main challenges in upholding highest ethical standards in civil services, suggest effective measures to overcome such challenges. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 

  • Declining Consumer Demand and Reluctant Investors

    Consumer Demand

    Context

    • In September, Finance Minister Nirmala Sitharaman was anguished that industry was holding back from investing in manufacturing despite a significant cut in corporate tax rates in 2019.

    Analyzing the corporate Investment since the pandemic

    • Less investment is not the result of losses: The slowdown in corporate investment did not happen because companies were making losses.
    • More profit but less investments by corporates: In fact, private companies, boosted by considerable tax cuts, made windfall profits. A State Bank of India analysis shows that tax cuts contributed 19% to the top line of companies during the pandemic. But this did not result in increased investments.
    • Dividends to shareholders: Before the pandemic, instead of investing in themselves, companies chose to reward shareholders with higher dividends.
    • Investment in equity and debt instead of Infrastructure: During the pandemic, they did not use the profits for paying out dividends; they retained a big chunk of the profits. However, instead of investing in buildings, plants and machinery, they invested in equity shares and debt instruments.
    • Corporate cited the slowdown in demand as reason for less investment: So, both before and after the outbreak, they shied away from capital investments. The hesitancy to invest can be explained by a slowdown in the demand side of the economy.
    • Corporates didn’t invest in long term returns sectors: Consumer demand started to decline the year before the pandemic and worsened after the COVID19 outbreak. This forced companies to use the increased profits to decrease their debts, pay dividends and invest in financial instruments instead of increasing productivity by making capital investments.

    Consumer Demand

    What is The current consumer’s demand situation?

    • Average Consumer sentiment index: Private companies invest when they are able to estimate profits, and that comes from demand. The Centre for Monitoring Indian Economy’s (CMIE) consumer sentiment index is still below pre-pandemic levels but is far higher than what was seen 12-18 months ago.
    • Buoyant Aggregate demand: RBI’s Monetary policy report dated September 30 says, Data for Q2 (ended Sept) indicate that aggregate demand remained buoyant, supported by the ongoing recovery in private consumption and investment demand. It shows that seasonally adjusted capacity utilization rose to 74.3% in Q1 the highest in the last three years.
    • High household savings: Along with household savings intentions remaining high, might hold the key to the investment cycle kicking in.

    Consumer Demand

    Statistic on demand and investment

    • New investment projects: The new investment projects announced as a % of GDP, since FY18, the share has remained below the 5% mark, compared to over 9% between FY05 and FY22.
    • Collection of corporate tax decreased: Corporate tax and income tax collected in India as a % of GDP after the cut in 2019, the share of corporate tax declined dramatically, while the share of income tax gradually increased.
    • Double burden on tax payers: The shift in tax burden from the corporates to the people came at a time of job losses and reduced income levels. This pushed more people into poverty.
    • Corporate profit increased after tax cut: Profit after tax earned by non-financial private companies in ₹ trillion after the tax cut, the profits of these companies rose to ₹4-5 trillion in the last two financial years from ₹1-2 trillion in many of the previous periods.
    • Increase and decrease in dividend to shareholders: Dividends paid by non-financial private companies as a share of profits earned after tax, Payouts to shareholders surged in FY20, the year before the pandemic, but reduced in the following years.
    • Profit retention increased: Retained profits as a % of profit after tax surged to 63% in FY22 the highest in a decade (limited companies were analyzed in FY22, so data are provisional).
    • Profits are invested in equities: In FY21, the debt-to-equity ratio came down to 0.86 the lowest in at least three decades. In FY22 (provisional data), it came down further to 0.71.
    • Year on year decline in capital investment: Year on year change in the investments of non-financial private companies in fixed assets such as buildings, plants, machinery, transport and infrastructure have declined in recent years. But the year on year change in investments in financial instruments such as equity, debt and mutual funds have surged.

    Consumer Demand

    Conclusion

    • Corporates are holding their pockets in hope of demand rise in future. However, this affects the post-pandemic recovery of economy. IMF and RBI was right to revise their growth forecast this year. Unequal recovery of economy have certainly affected the income levels of middle class. Government has taken a lot of step on supply side (corporate side and banking reform) but no intervention in revival of demand.

    Mains Question

    QAnalyze the corporate investment pattern before and after the pandemic? What are the reasons for decline in corporate investment in fixed assets in economy since the pandemic?

    Click and Get your FREE copy of Current Affairs Micro notes

     

  • India’s role in Russia-Ukraine war

    Ukraine war

    Context

    • As external affairs Minister Subrahmanyam Jaishankar arrives in Russia this week for a bilateral visit, there is growing international interest in the potential Indian diplomatic contribution to ending the tragic war in Ukraine which is now in the ninth month and has shaken the world to its core.

    The story of Ukraine’s war and India’s Strategy so far

    • India’s balanced approach: India has reasons to be satisfied that there is a better appreciation of its position on Ukraine in the Western public discourse. In the last few months, the Western media and think tanks had been relentless in their criticism of the Indian approach to the crisis as lacking moral and strategic clarity in the face of Russia’s unprovoked aggression.
    • India didn’t criticize Russian nor endorse Russian aggression: Through the last nine months, Delhi was reluctant to explicitly criticize Russian aggression against Ukraine and insisted on a dialogue between the warring parties. At the same time, India refused to endorse Russian aggression, underlined the importance of respecting the United Nations Charter, emphasized the inviolability of territorial sovereignty, warned against the use of nuclear weapons, and sought to draw at tension to the economic impact of the war on the “Global South”.
    • America showed sensitivity to India’s position: In the Biden administration there was a measure of understanding of where Delhi was coming from and India’s long-standing equities in the relationship with Russia and the constraints it imposed on India. Official Washington never let the heat of the Ukraine crisis in Europe undermine the longer-term American imperative of engaging India to stabilize the Indo-Pacific. The same can’t be said about Europe, but then the continent was right in the middle of the gravest conflict since the Second World War. The European trauma from a shattered peace is real.
    • India’s role in grain shipment and nuclear power station: Recent reports in the US media recount the Indian diplomatic contribution at a few critical moments in the nine-month-long war-in helping overcome issues over the grain shipment deal from Ukraine and in reducing the growing risks of the war targeting the nuclear power station at Zaporizhzhia in eastern Ukraine.

    Ukraine war

    Can India take on a larger diplomatic role?

    • India’s role is limited: Good relations with Moscow and Washington do put South Block in an interesting position. But India is not the only channel of communication between the US and Russia. Nor are Washington and Moscow totally reliant on third parties.

    Efforts to end war by west and Russia

    • Communications between the defence ministers: The defence ministers of the two countries have frequently talked to each other reminding each other of their redlines in the war. Meanwhile, the onset of winter will increasingly limit the possibilities for military operations in Ukraine and would give a chance to both sides to pause, regroup and rethink their strategy and tactics.
    • Putin’s strategy: Putin’s current focus on destroying the Ukrainian cities and the occasional threat to use nuclear weapons underline Russia’s weakness in the Ukraine war rather than strength. From a military perspective, there is no easy way for Russia to secure a “victory” in this war.
    • Limitations of Putin: Putin might have no option but to consider an honorable draw that will save his political face and secure some territorial gains in Ukraine. Can the same be said about the other Vladimir? (The Russians and Ukrainians both claim Vladimir or Volodymyr the Great of the 10th century as the founder of their nations).
    • Ukraine’s strategy: Ukraine’s president Volodymyr Zelenskyy has led the country’s fight against Russian aggression with impressive determination. Unlike the Russian troops, the Ukrainian forces are trying to save their nation against aggression and have inflicted significant military defeats on the Russians.
    • Limitations of Ukraine: There is a question, can Zelenskyy succeed in liberating all territories occupied by Russia, including Crimea which Russia took by force in 2014? Zelenskyy might like to fight on until he realizes that goal, but there are second thoughts in the Western coalition that is backing him.
    • Western effort of sanctions on Russia: The West had bet that the massive sanctions it imposed after Moscow launched its war against Ukraine would bring the Russian economy to its knees. But Russia is still standing and the costs of the sanctions are beginning to have major effects on Western societies.
    • Rising energy cost and Ineffectiveness of sanctions: As the economic and energy costs of the war mount, there is growing political support in Europe for a quick resolution of the conflict. In the US, which has emerged as the main supporter of Ukraine, there are both Republicans and Democrats who are questioning the current American “blank cheque” for Ukraine. If the Republicans do well as they are expected to in this week’s midterm elections to the US Congress, the internal polarization could sharpen and cast a shadow over American foreign policy, including the Ukraine strategy.
    • USA is repairing its strategy: Although these developments need not be fatal to US strategy, Washington is beginning to recalibrate. In important private advice to Kyiv last week, Washington called for greater flexibility in Zelenskyy’s approach to negotiations with Putin.

    Ukraine war

    Conclusion

    • Ending the war in Ukraine is very crucial as global economy especially western, facing energy and inflation crisis. India has a limited impact as mediator in ending the war in Ukraine. West and Russia need to realise their futile pursuit of complete victory is hurting them more. Sooner the war ends better for world.

    Mains Question

    Q. What role India can play as mediator in Ukraine war? What are efforts by Russia and Western nations to end the war?

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  • (Watch LIVE) Anthropology Optional Webinar | Strategy and approach for scoring 300+ in UPSC 2023-24 Anthro optional | With IPS Shubham and Minakshi ma’am

    (Watch LIVE) Anthropology Optional Webinar | Strategy and approach for scoring 300+ in UPSC 2023-24 Anthro optional | With IPS Shubham and Minakshi ma’am

    8th Nov 2022, 1 pm IPS Shubham and Minakshi ma’am will be LIVE | Register below for the Anthropology webinar | Post-registration we will share toppers’ Anthro notes and will add to Anthro Telegram group


    Anthropology is one of the most popular and high-scoring optional subjects for UPSC CSE. Rankers like AIR 1, Anudeep Durishetty have been taking this optional and clearing the exam.

    Short and relatively static syllabus, easily covered and comprehended by both science and non-science grad students, and the time it takes to cover the syllabus (less than 3 months) make it a great optional.

    However, there are various challenges that are faced by students.

    1. Guidance is limited unlike other optionals like PSIR, geography, history, sociology etc.
    2. Conceptual clarity and command over the answer writing are required, just mugging up will not help to score marks in this optional. This is ignored by aspirants.
    3. Personalized mentoring is not available in this optional that’s why aspirants are facing difficulties with their answer writing and most of the time complete (ineffectively and insufficiently) the syllabus by self-studies.

    IPS Shubham sir and Minakshi ma’am will be taking up Anthropology webinar

    Through this webinar, we will clear all the doubts and guiding you in a strategic manner.


    Objectives of the special masterclass-webinar: 

    1. Strategy and a basic plan to complete the entire anthropology optional syllabus within 3 months.
    2. Trend analysis of Anthropology Optional over 5 years in UPSC CSE.
    3. Precise and most relevant booklist and sources.
    4. How to make notes and use current affairs?
    5. How Anthropology optional syllabus can be used for GS and Essay part of UPSC prep?
    6. How optional answer writing is different from GS answer writing?
    7. How to structure the anthropology optional preparation and answers?
    8. Anthropology optional previous year questions, discussion and their model answers.
    9. Q and A with aspirants.

    Do and don’t of ethics paper. The most common mistakes will also be discussed.



    What The Hindu mentioned about Civilsdaily Mentorship

    The Hindu has acknowledged the success rate of CD’s Smash mains Mentorship

    Quora Digests:

    Register below for the Anthropology webinar | Post-registration we will share toppers’ Anthro notes and will add to Anthro Telegram group

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