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  • Slide in democratic values, India must work to fix it

    Context

    India has performed poorly in every major global democracy report in the past few years.

    India’s declining performance

    • The Freedom House Index for 2021 pushed India down four points from last year, bringing its score from 71 to 67.
    • V-Dem, the world-renowned think-tank from Sweden, has similarly downgraded India.
    • It has labelled India an “electoral autocracy”.
    • The Economist Intelligence Unit (EIU) study has shown India’s ranking has taken a nosedive from 27 to 53 out of 167 countries.
    • The Reporters without Borders’ Press Freedom Report has placed India 167th out of 183 countries.
    • Freedom House has also given India a score of 2 out of 4 in terms of press freedom.

    Factors pointed out by the rating agencies

    • The country has seen increased pressure being put on human rights organisations and civil rights groups.
    • Journalists and activists have been intimidated and incarcerated, and minorities have been specifically targeted.
    • Hate and polarisation are rampant.
    • The most worrying trend has been the crackdown on freedom of speech, with statistics showing a 165 per cent increase in sedition cases between 2016 and 2019.

    Issues with rejecting of global democratic indexes

    • Indian government sought to challenge the rating of EIU after it released its 2021 report earlier this year.
    • An offer made by the Indian government to supply ‘accurate’ data pertaining to the democratic index was firmly refused by the EIU.
    • Shooting the messenger: This seeming retraction of Indian democratic values in global reports and the Indian indignation regarding it seems to be a clear case of shooting the messenger.
    • Harming democracy: The Indian refusal to acknowledge and remedy them is irreparably harming its democracy.
    • Trying to influence the rating agencies to doctor data to suit us is reprehensible.
    • Difficulty for policymakers: Kaushik Basu, formerly the chief economist of the World Bank, commenting on this episode has said that the tendency of fabricating data to present an alternative image has beset the Indian administration.
    • Not showcasing actual data is making it difficult for policymakers to attempt to remedy the situation.

    Way forward

    •  A committee of secretaries’ meeting on January 30, 2020 discussed how India fared on various important parameters based on 32 internationally recognised indices in order to improve the performance on these indices.
    • The desire to introspect and analyse what needs to be done to improve is correct and laudable.
    •  Let NITI Aayog and all concerned organisations focus on improving our performance in all the declining indicators.

    Consider the question “Ranking of the various agencies shows the declining trend of democratic values in India. What are the reasons for such decline?vSuggest the steps to arrest this decline.” 

    Conclusion

    Instead of denying these rankings and the reports of these agencies, India must work on fixing them.

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  • Can the SCO be the regional body that stabilizes Afghanistan?

    On the face of it, the summit meeting of the Shanghai Cooperation Organisation (SCO) this week in Dushanbe, Tajikistan, is well placed to lead the stabilization of Afghanistan after the American retreat.

    About SCO

    • 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 and 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. China then asked for its all-weather friend Pakistan’s entry.

    Afghanistan and SCO

    • Afghanistan has been engaged with the SCO for over 15 years.
    • In 2012, Afghanistan became an observer in the SCO when then-Afghan president Hamid Karzai visited China.
    • In 2015, Kabul applied for full membership in the group.
    • Kabul sought to be a member of the SCO as it believes that it is a natural candidate.
    • Geographically, Afghanistan is a part of the SCO region.

    Limited (or No) progress made by SCO

    • For all the political hype, the SCO has not deepened regionalism in Central Asia.
    • Two decades after its formation — it was set up just weeks before the 9/11 attacks on New York and Washington — the institutional promise of the SCO remains just that — a promise.
    • Seen from the subcontinent, the SCO certainly looks better than the South Asian Association of Regional Cooperation (SAARC).
    • That India and Pakistan, whose differences have prevented even regular meetings of SAARC, are actively participating in the SCO, would point to its attractiveness.
    • But then SAARC is such a low bar.

    Opportunities for role-play in Afghanistan

    The crisis in Afghanistan presents a major opportunity for the SCO to realize its regional ambitions.

    • Involvement of regional superpowers: The SCO’s importance for Afghanistan seems self-evident when you look at its sponsors and members. Its founding leaders are the two great powers of the east — Russia and China.
    • Neighborhood are members: Its other initial members were Uzbekistan, Tajikistan, Kyrgyzstan, and Kazakhstan to the north and northeast of Afghanistan.
    • Observers vested interest: Besides Afghanistan, Iran, Belarus and Mongolia are observers. Iran is said to be on track for full membership.
    • Many dialogue partners: The SCO has a number of “dialogue partners”. They include Armenia and Azerbaijan from the neighboring Caucasus region and Turkey a step further to the West. Nepal and Sri Lanka from the subcontinent and Cambodia from southeast Asia are also dialogue partners.

    Issues with SCO

    • China centrism: For an organization that bears the name of Shanghai, but is focused on Central Asia, its associates look disparate.
    • Lack of coherence: The Central Asian members of the SCO have quarrels of their own, and have struggled to develop collective approaches to their common regional security challenges.
    • Dint go beyond dialogues: As it broadened its membership, the SCO has, unsurprisingly, struggled to deepen institutional cooperation.
    • Not comprehensive: There is also one important country missing in the mix. It is Turkmenistan, which shares an 800 km border with Afghanistan and a 1,150 km border with Iran.
    • Neutrality of members: The organizing principle of Turkmenistan rulers is absolute “neutrality” — think of it as an extreme form of “non-alignment”. It refuses to join any regional institution, political or military.
    • Individual interests: Russia’s effort to build a regional institution in its Central Asian periphery ran parallel to its plans for the so-called “strategic triangle” with China and India. India and Pakistan, needless to say, are poles apart on the Taliban.

    No common interest in Afghan Peace

    • The US military retreat from Afghanistan has brought cheer to both Moscow and Beijing, although publicly they criticize President Joe Biden’s hasty retreat.
    • The US retreat might weaken the glue that binds Moscow and Beijing in Central Asia or tightens it.
    • Although Russia and China are closer to each other than ever before, their interests are not entirely the same in Central Asia.

    Russian alternatives to SCO

    (1) Central Security Treaty Organisation

    • While military confidence-building measures have grown under the SCO banner, Russia had its own security organisation for the region, called the Central Security Treaty Organisation (CSTO).
    • Three of the SCO members — Kazakhstan, Kyrgyzstan, and Tajikistan — along with Armenia and Belarus are members of the CSTO.
    • Russia sees itself as the sole protector of the former Soviet Republics and may not be ready to share that role with China — “yes” to coordination, but “no” to a Sino-Russian security dyarchy.

    (2) Eurasian Economic Union

    • Moscow also appears reluctant to back Chinese proposals to promote trade integration under the SCO banner; it prefers the Eurasian Economic Union (EAEU) under its own leadership.
    • China is not a member of either CSTO or EAEU. This is one reason for the weakness of SCO regionalism.

    Other deterrents

    (1) Affinity with Taliban

    • China has openly admitted to cooperating with the Taliban by restoring all formal diplomatic ties. It is the first such country to acknowledge the Taliban.
    • Turkmenistan too, which is not part of SCO, has been quite open to engaging the Taliban in sync with its principles of neutrality.
    • Some Russian analysts see Turkmenistan as the potential weak link in the defense against the Taliban’s potential threats to the region.
    • Uzbekistan seems open to a cautious engagement with the Taliban.

    (2) Iranian aspirations for unwarranted interference (just like Turkey does regarding Kashmir)

    • Iran, which has ethnic and linguistic links with the Persian-speaking Tajiks, appears equally worried about the Taliban’s policies towards minorities.
    • As Moscow and Beijing, Tehran was happy to see the Americans leave in humiliation and appeared hopeful of a positive engagement with the Taliban.
    • Those hopes may have been suspended for now, if not discarded.

    What can the SCO do now?

    • The Afghanistan debacle presents an opportunity for the SCO to play a constructive role in meeting the region’s burgeoning security challenge.
    • Providing humanitarian relief, tending to refugees, facilitating an inclusive dialogue and national reconciliation constitute immediate and long-term goals in which the organization can fill a role.
    • The SCO can also pressure the Taliban to share power with other domestic actors and refrain from providing sanctuary to foreign terror organizations (through foreign funds from Saudi*).
    • It can suspend Afghanistan’s observer status, curtail border traffic or withhold recognition, investments, and aid, should Kabul be found wanting.

    Way forward

    • While the SCO is not an impressive regional institution, it remains an important diplomatic forum.
    • India has sought to make full use of the SCO’s diplomatic possibilities without any illusions about its effectiveness.
    • At the SCO summit this week, PM Modi would remind other leaders of the “three evils” that the SCO set out to defeat — terrorism, extremism, and separatism.
    • Few would disagree that the Taliban embodied all the three sins in the past. Today, the Taliban and its mentor Pakistan say the sinner wants to become a saint.
    • India must focus on finding common ground with those members of the SCO who do share India’s concerns about Afghanistan.

    Conclusion

    • Given this divergence, it is unlikely that the SCO can come up with a “regional solution” for the Afghan crisis.
    • The only real Afghan convergence today is between Pakistan and China.
    • Expect them to try and nudge the SCO towards a positive engagement with the Taliban.

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  • GST Council may consider bringing petrol, diesel under GST

    The GST Council might consider taxing petrol, diesel and other petroleum products under the single national GST regime.

    About GST Council

    • The GST Council is a constitutional body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
    • It is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
    • It dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
    • The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

    How is the GST Council structured?

    • The GST is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A.
    • According to the article, the GST Council will be a joint forum for the Centre and the States. It consists of the following members:
    1. The Union Finance Minister will be the Chairperson
    2. As a member, the Union Minister of State will be in charge of Revenue of Finance
    3. The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.

    Terms of reference

    • Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as the goods and services will be subject to or exempted from the Goods and Services Tax.
    • They lay down GST laws, principles that govern the following:
    1. Place of Supply
    2. Threshold limits
    3. GST rates on goods and services
    4. Special rates for raising additional resources during a natural calamity or disaster
    5. Special GST rates for certain States

    Why bring Petro/Diesel under GST?

    • GST is being thought to be a solution for the problem of near-record high petrol and diesel rates in the country, as it would end the cascading effect of tax on tax.
    • The state VAT is being levied not just on the cost of production but also on the excise duty charged by the Centre on such output.

    Why were they left out of GST?

    • When a national GST subsumed central taxes such as excise duty and state levies like VAT on July 1, 2017, five petroleum goods – petrol, diesel, ATF, natural gas and crude oil – were kept out of its purview.
    • This is because both central and state government finances relied heavily on taxes on these products.
    • Since GST is a consumption-based tax, bringing petroleum under the regime would have mean states where these products are sold get the revenue and not the producer ones.
    • Simply put, Uttar Pradesh and Bihar with their huge population and a resultant high consumption would get more revenues at the cost of states like Gujarat.

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  • What is Input Tax Credit?

    The Supreme Court has confirmed a Madras High Court judgment which upheld a fiscal formula included in the Central Goods and Service Tax Rules to execute refund of unutilized Input Tax Credit (ITC) accumulated on account of input services.

    What is Input Tax Credit?

    • Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs.
    • Say, you are a manufacturer – tax payable on output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300 You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes. See here:

    Pc: Cleartax.in

    The case in discussion

    • The apex court Bench led, by Justice D.Y. Chandrachud, passed the judgment in the face of two contradicting judgments of Gujarat and Madras High Courts on the validity of Rule 89(5) of the Central GST Rules, 2017.
    • Rule 89(5) provides a formula for the refund of ITC, in “a case of refund on account of inverted duty structure”.
    • The Gujarat High Court had held that by prescribing a formula in sub-Rule (5) of Rule 89 to execute refund of unutilized ITC accumulated on account of input services.
    • The Madras High Court, while delivering its judgment declined to follow the view of the Gujarat High Court.

    Answer this PYQ in the comment box:

    Consider the following items:

    1. Cereal grains hulled
    2. Chicken eggs cooked
    3. Fish processed and canned
    4. Newspapers containing advertising material

    Which of the above items is/are exempt under GST (Goods and Services Tax)?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

     

    Post your answers here

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  • [Important] How can working professionals crack UPSC with serious time crunch?

    [Important] How can working professionals crack UPSC with serious time crunch?

    Preparing for the UPSC exam can be a tough race against time. And if you are a working professional who is managing your job along with the preparation, coping with the syllabus can be extremely difficult.

    Your day starts with the pressure of your work. You may have to manage project deadlines, you have to attend office meetings, you may have to deal with clients at work, and spend a lot of time at your workplace.  In fact, by the time you reach home from work, you already feel exhausted and have no energy to study anymore.

    But does that mean you give up on your dreams?

    NO!

    We will discuss the important ways in which you can crack this exam through the following methods:

    1. Personalized timetable
    2. Personalized study plan
    3. Tracking your progress
    4. Investing in topics with good ROI
    5. Focusing on smart study

    We spoke with over 3,000+ working professionals who are also preparing for the IAS exam and the most difficult obstacle faced by almost every aspirant was – Managing the time for preparation.

    So, how can you manage your time better?

    Personalized timetable – Each aspirant has a different schedule. Some of you study before starting the day’s work, some of you return home after work and then study. The important thing to realize is that there is NO Perfect strategy. You need a plan that suits YOUR needs!

    Use this decison matrix to make correct choices

    You can start by dividing your day into different time slots and start by prioritising what you are weak at. You can shut the social media without completely shutting your social life. Figure out the best timetable that gives you the maximum free time to study and stick to it.

    Personalised study plan – Each aspirant learns at a different pace. Not only your timetable, but it is also important to organise your syllabus in order to cope with it. You can break the syllabus into smaller chunks, you can study concise material, and even find smart ways to save time.

    For example, if you do not find enough time to make notes from the newspaper, you can always study from compiled newspaper notes. You can save time by focusing on reading coaching notes, studying concise current affairs, etc. Plan your syllabus to deal with the most important static topics and current affairs first, then move to other study materials.

    Tracking your progress – Cracking UPSC is not about perfection, it is about consistently progressing. And TRACKING your progress. Since you are pressed for time, it is extremely important that you monitor your progress closely.

    For example, when you give a mock test track the questions you got wrong, identify why you got those wrong, also look at the other options given in the question which you answered correctly. As you study, keep monitoring your progress. That’s the only way to make the best out of your limited time.

    Make every moment count – You know that you are facing a time crunch which means that you have to work hard for only that amount of time. So, give your everything. Use every micro opportunity to study. Read Current Affairs snippets, practice quick online quizzes, etc. to make sure not a single moment is wasted. And even if the progress is slow, do not worry, keep progressing!

    Utilize the Travelling time: Always carry some study material which can be handy i.e. Newspapers or a small notebook and use it in the interim period of travel whenever possible

    Invest in only good Return on Investment (ROI) topics: If an aspirant has less time to prepare and revise, it is important to analyze the ROI that each topic under the syllabus will give you. Studying the syllabus is as important as preparing for the examination itself. Aspirants must have a clear understanding of the topics and the weightage that each portion is given. To do this, aspirants could compare the syllabus with the previous year’s question papers.

    Focus on smart work: Aspirants, especially those who are preparing along with handling a full-time job, must be smart when it comes to preparing. “Do not fall into the trap of reading everything under the sun. You do not have the luxury of time, so be smart in choosing what you study. Focus on limited content from limited resources. Use the time you have to revise ‘n’ number of times, rather than picking up newer material.

    And remember, When preparation gets tough, we’ll be there for you!

    Do not get overwhelmed by the time crunch, do not feel scared. There is a way to manage time and we can help you achieve your dreams.

    So far, more than 10,000 working professionals have benefited from the free 1-1 mentorship program of Civilsdaily. Please fill this registration form and our experienced Mentor will reach out to you and make a perfect personalized preparation schedule plan for you keeping in mind your serious time crunch.

  • 50th anniversary of Meghalaya’s Statehood

    The Meghalaya Assembly has given an indigenous touch to the National Anthem ahead of the 50th anniversary of Meghalaya’s Statehood in 2022.

    About Meghalaya

    • Meghalaya meaning “abode of clouds” was formed by carving out two districts from the state of Assam: the United Khasi Hills and Jaintia Hills, and the Garo Hills on 21 January 1972.
    • It was previously part of Assam, but on 21 January 1972, the districts of Khasi, Garo and Jaintia hills became the new state of Meghalaya.
    • It is the wettest region of India, with the wettest areas in the southern Khasi Hills recording an average of 12,000 mm (470 in) of rain a year.
    • About 70 percent of the state is forested.
    • The Meghalaya subtropical forests ecoregion encompasses the state; its mountain forests are distinct from the lowland tropical forests to the north and south.

    Note the chronology of reorganization states in India

    State Formation Year Status prior to the formation
    Andhra 1953 Part of the state of Madras
    Gujarat 1960 Part of the state of Bombay
    Maharashtra 1960 Part of the state of Bombay
    Kerala 1956 State of Travancore and Cochin
    Nagaland 1963 Union territory
    Haryana 1966 Part of Punjab
    Karnataka 1956 State of Mysore was formed in 1953, enlarged Mysore in 1956 which was renamed in 1973.
    Himachal Pradesh 1971 Union Territory
    Manipur, Tripura 1972 Union Territories
    Meghalaya 1972 Autonomous state within state of Assam
    Sikkim 1975 Associate state since 1974 and a protectorate of India before that.
    Mizoram 1987 District of Assam till 1972 and Union Territory from 1972 to 1987.
    Arunachal Pradesh 1987 Union Territory
    Goa 1987 Union Territory
    Uttarakhand 2000 Part of Uttar Pradesh
    Chhattisgarh 2000 Part of Madhya Pradesh
    Jharkhand 2000 Part of Bihar
    Telangana 2014 Part of Andhra Pradesh

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [Important] How to crack UPSC with serious time crunch?

    [Important] How to crack UPSC with serious time crunch?

    Preparing for the UPSC exam can be a tough race against time. And if you are a working professional who is managing your job along with the preparation, coping with the syllabus can be extremely difficult.

    Your day starts with the pressure of your work. You may have to manage project deadlines, you have to attend office meetings, you may have to deal with clients at work, and spend a lot of time at your workplace.  In fact, by the time you reach home from work, you already feel exhausted and have no energy to study anymore.

    But does that mean you give up on your dreams?

    NO!

    We will discuss the important ways in which you can crack this exam through the following methods:

    1. Personalized timetable
    2. Personalized study plan
    3. Tracking your progress
    4. Investing in topics with good ROI
    5. Focusing on smart study

    We spoke with over 3,000+ working professionals who are also preparing for the IAS exam and the most difficult obstacle faced by almost every aspirant was – Managing the time for preparation.

    So, how can you manage your time better?

    Personalized timetable – Each aspirant has a different schedule. Some of you study before starting the day’s work, some of you return home after work and then study. The important thing to realize is that there is NO Perfect strategy. You need a plan that suits YOUR needs!

    Use this decison matrix to make correct choices

    You can start by dividing your day into different time slots and start by prioritising what you are weak at. You can shut the social media without completely shutting your social life. Figure out the best timetable that gives you the maximum free time to study and stick to it.

    Personalised study plan – Each aspirant learns at a different pace. Not only your timetable, but it is also important to organise your syllabus in order to cope with it. You can break the syllabus into smaller chunks, you can study concise material, and even find smart ways to save time.

    For example, if you do not find enough time to make notes from the newspaper, you can always study from compiled newspaper notes. You can save time by focusing on reading coaching notes, studying concise current affairs, etc. Plan your syllabus to deal with the most important static topics and current affairs first, then move to other study materials.

    Tracking your progress – Cracking UPSC is not about perfection, it is about consistently progressing. And TRACKING your progress. Since you are pressed for time, it is extremely important that you monitor your progress closely.

    For example, when you give a mock test track the questions you got wrong, identify why you got those wrong, also look at the other options given in the question which you answered correctly. As you study, keep monitoring your progress. That’s the only way to make the best out of your limited time.

    Make every moment count – You know that you are facing a time crunch which means that you have to work hard for only that amount of time. So, give your everything. Use every micro opportunity to study. Read Current Affairs snippets, practice quick online quizzes, etc. to make sure not a single moment is wasted. And even if the progress is slow, do not worry, keep progressing!

    Utilize the Travelling time: Always carry some study material which can be handy i.e. Newspapers or a small notebook and use it in the interim period of travel whenever possible

    Invest in only good Return on Investment (ROI) topics: If an aspirant has less time to prepare and revise, it is important to analyze the ROI that each topic under the syllabus will give you. Studying the syllabus is as important as preparing for the examination itself. Aspirants must have a clear understanding of the topics and the weightage that each portion is given. To do this, aspirants could compare the syllabus with the previous year’s question papers.

    Focus on smart work: Aspirants, especially those who are preparing along with handling a full-time job, must be smart when it comes to preparing. “Do not fall into the trap of reading everything under the sun. You do not have the luxury of time, so be smart in choosing what you study. Focus on limited content from limited resources. Use the time you have to revise ‘n’ number of times, rather than picking up newer material.

    And remember, When preparation gets tough, we’ll be there for you!

    Do not get overwhelmed by the time crunch, do not feel scared. There is a way to manage time and we can help you achieve your dreams.

    So far, more than 10,000 working professionals have benefited from the free 1-1 mentorship program of Civilsdaily. Please fill this registration form and our experienced Mentor will reach out to you and make a perfect personalized preparation schedule plan for you keeping in mind your serious time crunch.

  • [RSTV Archive] Normal Monsoon and Economy

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

    IMD had predicted normal monsoon for 2021. However, initial estimates show that some states may not get enough rain.

    In this article, we shall learn how this will impact economic growth, especially when other sectors are still reeling under Covid-19 impact.

    What is Monsoon?

    • Monsoon is traditionally a seasonal reversing wind accompanied by corresponding changes in precipitation.
    • It is now being used to describe seasonal changes in atmospheric circulation and precipitation associated with annual latitudinal oscillation of the Intertropical Convergence Zone between its limits to the north and south of the equator.
    • Usually, the term monsoon is used to refer to the rainy phase of a seasonally changing pattern, although technically there is also a dry phase.
    • The term is also sometimes used to describe locally heavy but short-term rains.

    What defines a Normal Monsoon?

    The Indian Meteorological Department (IMD) calls a monsoon season:

    • ‘Normal’ when the total amount of rainfall in the country between June and September is within 10 per cent (plus or minus) of the average rain over a long period.
    • ‘Deficit rainfall’ is when it drops below the margin of 10 per cent of the average.
    • ‘Excess rainfall’ is when it exceeds the average by more than 10 per cent.

    What is the LPA method?

    • The IMD uses long period average (LPA) method to forecast the monsoon.
    • LPA represents the average annual rainfall received by India during the southwest monsoon over the five decades from 1961 to 2010.

    Why is it so important to have Normal Monsoon?

    A good monsoon usually brings renewal and recovery, especially when times are grim. The right amount of rainfall brings the promise of a bumper harvest, boosting rural incomes and demand, driving an essential economic cycle.

    (1) Crop success

    • The monsoon is critical for agriculture in the country since nearly 60% of India’s net arable land lacks irrigation.
    • The monsoon delivers about 70% of India’s annual rainfall and determines the yield of several grains and pulses, including rice, wheat, and sugarcane.
    • India is the world’s biggest producer of sugar, cotton and pulses, and the second-biggest producer of wheat and rice. 

    (2) Food inflation

    • More importantly, higher agriculture yield would mean lower pressure on food prices and the overall retail inflation.
    • A normal south-west monsoon should help to contain food price pressures, especially in cereals and pulses.
    • It is also crucial to keep up the rural demand.

    (3) Drinking water

    • The rains also replenish nearly 100 large reservoirs critical for drinking water and power generation across the country.
    • In the event of deficient rains, cities such as Chennai, Mumbai, and Hyderabad will be forced to cut water supplies.

    (4) Demand spur in the economy

    • Most major sectors of the economy like to base their sales and distribution activities on the monsoon’s behavior.
    • For example, if the monsoon fails, lower production of foodgrain would mean lower demand for diesel to transport goods.
    • A company involved in sales and distribution of automotive fuels would like to cut down production before the demand plummets.
    • From share markets and betting houses to the collections at temples and sales of vegetables, the monsoon affects everything.

    (5) Hydro Energy

    • A normal monsoon will also lead to reservoirs across India, which are responsible for water supply in cities, filling up.
    • Thus it  will also lead to an increase in production of hydro power which is a cleaner form of energy.

    Importance of Monsoon for the Agriculture

    • When the first wave of Covid-19 cases ravaged the economy in 2020, it was the agriculture sector, powered by an above-average monsoon, that saved the economy and millions who depend on agriculture, both directly and indirectly.
    • Nearly half of India’s farmland has no irrigation and is dependent on monsoon rains, which account for 70-90 per cent of annual rainfall.
    • Farming accounts for almost 15 per cent of India’s GDP and employs nearly 42.6 per cent of the workforce.
    • While the share of Indians employed in the sector is declining, it remains a critical sector.

    Public sentiments associated

    • Normal monsoon will also improve the sentiment in rural India which has witnessed many coronavirus cases and deaths.
    • It will lead to an increase in income of farmers and provide a boost to rural demand which has been facing pressure in the second wave.

    Significance for post COVID recovery

    • A normal monsoon would ensure that inflation remains in the band of 4%-6% as targeted by the Reserve Bank of India.
    • Low inflation will help the Reserve Bank of India to continue with its stance of keeping interest rates low. Generally, central banks resort to an increase in interest rates to tackle high inflation.
    • Low rate scenario is required at a time when Indian economy is battling from the economic fallout of the pandemic.

    Issues in Monsoon Prediction

    • One may complain about the “unreliability and uncertainty of rainfall prediction in India.
    • In recent times, the unpredictability of monsoons has increased significantly with the impact of global warming that has resulted in climate change all over the world.
    • For climate scientists, determining the location, extent, and intensity of the ITCZ is the biggest challenge and in recent times it has become more difficult due to climate change and other factors like El Nino, a global climate cycle that disrupts the path of trade winds.
  • Places in news: Pilibhit Tiger Reserve

    A herd of around 25 elephants from Nepal’s Shuklaphanta National Park reached the tiger reserve in Uttar Pradesh almost a month back.

    Pilibhit Tiger Reserve

    • Pilibhit Tiger Reserve is located in Pilibhit district of Uttar Pradesh and was notified as a tiger reserve in 2014.
    • It is one of the few well-forested districts in Uttar Pradesh.
    • It forms part of the Terai Arc Landscape in the upper Gangetic Plain along the India-Nepal border.
    • The habitat is characterized by sal forests, tall grasslands and swamp maintained by periodic flooding from rivers.
    • The Sharda Sagar Dam extending up to a length of 22 km is on the boundary of the reserve.
    • The tiger reserve got the first international award TX2 for doubling the tiger population in a stipulated time.

    Try answering this PYQ:

    Q.Consider the following protected areas:

    1. Bandipur
    2. Bhitarkanika
    3. Manas
    4. Sunderbans

    Which of the above are declared Tiger Reserves?

    (a) 1 and 2 only

    (b) 1, 3 and 4 only

    (c) 2, 3 and 4 only

    (d) 1, 2, 3 and 4

     

    Post your answers here.

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