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  • Economics for IAS pre 2021: Strategy and Trend Analysis | Free Decimate Prelims Open Test (Link inside)

    register FREE for 2nd Decimate Prelims Open Test 2021

    Economics for UPSC IAS prelims is a tricky affair for many aspirants. The breadth and complexity of topics keeps them doubtful and confused about the approach to be followed to cover the syllabus.

    Watch Sajal sir provide his insights on the Economics syllabus and trend analysis of Economics PYQs in IAS Prelims exam. He has also discussed the approach you should be following for IAS prelims 2021 exam.

    Sajal sir will be taking up the module of Economics in Decimate Prelims 2021 program (crash course for IAS pre 2021). You can discuss and connect with him on Habitat as well.

    Reminder- 2nd IAS prelims Free test

    2nd Free Decimate Prelims Open Test will be held on 24th Jan 2021. Register for free below.

    register FREE for 2nd Decimate Prelims Open Test 2021
    DECIMATE PRELIMS OPEN BOOTCAMP- JOIN FREE

    Click here to enroll for Decimate Prelims 2021

    What is Decimate Prelims 2021?

    Decimate Prelims 2021 @ Habitat is a three-phased program that ensures full coverage of current affairs syllabus, related static parts, tests, intensive discussions, and revision.

    We’re going more intensive and comprehensive to make sure that you comfortably go beyond 130+ marks and literally decimate prelims.

    UPSC is evolving, are you? Bury the old ways of IAS Prelims preparation

    Decimate Prelims 2021 progression – 3 Phases

    Decimate Prelims 2021 IAS PRelims 2021

    Click here to enroll for Decimate Prelims 2021

  • (Live session) Essay writing for UPSC IAS exam: Unravel the mystery with Ajay Verma| Join us at 8 pm today (link inside)

    Essay writing is an art as well as a skill that must be learned and practiced. But for most of the aspirants, it is a bane of their lives.

    Since it’s the right time to start focussing on Essay writing (and not postpone it after prelims) Ajay Verma sir will be live with you for an interactive session on Essay writing where he will be unraveling the mystery of UPSC IAS Essays.

    Time and Date: 8 pm, 22 Jan. Click on the video and set a reminder. Join free Essay Writing group on Habitat (click)

    https://youtu.be/ieXWF4yKico

    Another reminder, the 2nd Free Decimate Prelims Open Test will be held on 24th Jan 2021. Click below to register for free.

    register FREE for 2nd Decimate Prelims Open Test 2021
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  • Getting it wrong on India’s level of agricultural support

    As per the OECD methodology, Indian farmers received negative support of Rs. 1.62-lakh crore in 2019, which implies that the government is taxing the farmers. But there are pitfalls in the methodology. The article explaines them.

    The issue of support given to the farmers

    • Many media reports, based on data by the Organisation for Economic Co-operation and Development (OECD), have stated that the support provided to Indian agriculture is extremely low or negative, and, therefore, net taxed.
    • The OECD has estimated that Indian farmers received negative support to the extent of minus ₹2.36-lakh crore and minus ₹1.62-lakh crore in 2010 and 2019, respectively.
    • Surprisingly, the negative support of minus ₹1.62-lakh crore as estimated by the OECD was higher than the total budgetary allocation of the Ministry of Agriculture at ₹1.09-lakh crore in 2019.

    Issues with the OECD estimates

    • Expenditure on the PM-KISAN, the National Food Security Mission, crop insurance, input subsidies such as fertilizer and electricity, are some of the measures covered under the 2019 OECD estimates.
    • However, the expenditure related to the operation of minimum support price and general services is not covered by it.
    • Despite the overall negative support, the expenditure of the Central and State governments on agriculture has increased substantially since 2000.
    • This support increased from ₹1.61-lakh crore to ₹3-lakh crore, between 2015 to 2019, registering 85% growth.
    • The massive negative market price support to the producers of different products has resulted in the total negative producer support, overshadowing the increase in the budgetary support over the years.

    Market Price Support as per OECD methodology

    • The market price support of a commodity is calculated by multiplying its total production with the gap between the domestic price and international prices in a relevant year.
    • This methodology assumes that in case there is no government intervention in the agriculture market, then the domestic and international price of a product will converge, resulting in no gap in prices.

    Why there is a focus on the price gap in OECD methodology

    • The OECD assumes government interventions lead to a gap between the international and domestic prices.
    • However, even if the government does not implement any program, the gap can still arise due to domestic and international factors.
    • Changes in supply and demand conditions in the domestic and international market due to shocks, depressed international prices due to subsidies given by other countries, among other factors, can generate a gap.

    3 Consequence of OECD’s Market Price Support methodology

    • 1) If the domestic price for a product is less than its international price, then support for that product would be negative.
    • 2) A negative market price support for a product in one year can turn into huge positive support in another year on account of the relative movement of domestic and international prices.
    • 3) Even if in a particular year, the government does not provide any additional support compared to a previous year, the level of support calculated by the OECD can change.
    • This will arise if there is a change in either the gap between the domestic price and international price for a commodity, or its production, in the two years.
    • Given the unpredictability in the inherent data, the total support can move from huge negative to huge positive.

    Concerns for India

    • For India, the negative support as a percentage of the total value of agriculture production has substantially reduced in recent years.
    • It is possible that support to Indian farmers in the near future becomes one of the highest in the world due to pitfalls in the OECD methodology.
    • This might set alarm bells ringing, particularly in the developed countries, which may aggressively question India’s support measures.

    Consider the question “As per the OECD methodology, net support provided by Indian government to its farmers is negative for the year 2019. However, India’s expenditure on agriculture is consistently rising. What explains this conundrum? What are the concerns for India in the price support method of OECD?”

    Conclusion

    Rather than being swayed by the OECD numbers suggesting negative support, farmers, policymakers, and other stakeholders need to understand the pitfalls and limitations in the underlying methodology. This will help in providing a more correct perception of the level of support to agriculture in India.

  • 22nd January 2021| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 25th January

    GS-1  Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues. 

    GS-4 Case Studies.

    Question 1)

    Discuss the key features and significance of folk dance of North Eastern India. 10 marks

    Question 2)

    With a view to the contentious issue of delay in the carrying out the death penalty, do you think that India should abolish the death penalty? Give reasons in support of your argument. 10 marks

    Question 3)

    Digital corporations can operate in a market without a physical presence. The current basis for taxing in a particular jurisdiction is a notion of a fixed place of business. In light of this, examine the challenges in taxing the digital companies and how India is dealing with such a challenge? 10 marks

    Question 4)  

    Explain tolerance and compassion in Indian context. How effectively can tolerance and compassion be used by the respective authority in the process of decision making in public administration? 10 marks

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • TN Governor to decide on Ex-PM assassin Pardon

    Tamil Nadu Governor would take a decision as per the Constitution in the next three or four days on the plea for release filed by A.G. Perarivalan, who is undergoing life imprisonment for the assassination of former PM Rajiv Gandhi in 1991.

    Give your personal views in favour and against Capital Punishment in the comment box.

    What is the news?

    • The court noted in its short order that the Solicitor General submitted that the application filed by the petitioner Perarivalan under Article 161 of the Constitution.
    • The TN State Cabinet had earlier made the recommendation to remit the life sentences of seven convicts, including Perarivalan in September 2018.
    • The new turn of events when the Additional Solicitor General for the Centre, had argued recently that the pleas for pardon and release should go to the President instead of the Governor.

    What does Pardon mean?

    • A pardon is a government/executive decision to allow a person to be absolved of guilt for an alleged crime or other legal offense as if the act never occurred.

    Why need a Pardon?

    • Pardons can be granted when individuals are deemed to have demonstrated that they have “paid their debt to society”, or are otherwise considered to be deserving of them.
    • Pardons are sometimes offered to persons who were either wrongfully convicted or who claim that they were wrongfully convicted.
    • Pardons are sometimes seen as a mechanism for combating corruption, allowing a particular authority to circumvent a flawed judicial process to free someone that is seen as wrongly convicted.

    What does Article 161 say?

    • Article 161 of the Constitution provides the Governor with the power to remit or commute the sentence of any prisoner.
    • The Governor’s decision will be subject to judicial review by the constitutional courts.

    Supreme court’s observations

    • The Constitution Bench in 2015, in a majority decision, had held that the States cannot unilaterally remit the sentences of life convicts in cases investigated by a Central agency under a Central law.
    • The assassination case was probed by the CBI.
    • In compliance with the 2015 verdict, the Tamil Nadu government wrote to the Centre in 2016, proposing the grant of remission to the convicts. The State wanted the Centre to concur.
    • After a wait of over two years, the Centre rejected the State’s proposal, saying this was an unparalleled act in the annals of crimes committed in this country.

    Arguments in Perarivalan’s petition seeking pardon

    • Perarivalan had been pleading for release citing that he was 19 when he was arrested.
    • He was the only male child of his parents, there were no records of criminal antecedents, and that he had excellent conduct in his entire prison life.
    • His petition also cited UG and PG degrees, and that he was the university topper, Gold medalist in diploma in DTP, and that he completed more than eight diploma and certificate courses during his prison term.
    • His probation officer gave a report about lapses in recording his confession statement that handed out maximum punishment in his case.

    Basis of his innocence

    • Perarivalan cannot be called innocent before the law as he continues to be a convicted prisoner serving imprisonment.
    • He was accused of having bought two battery cells for Sivarasan, the LTTE man who masterminded the conspiracy.
    • He was sentenced to death based on this crucial confession statement.

    Significance of the convicts’ release

    • The release of seven convicts is a demand raised by not only the ruling party of TN but the main opposition too.
    • All TN politicians voiced that the judiciary should be able to reform and let them live as good citizens to uphold the high values of reformatory justice and restitution.

  • China builds a new village in Arunachal Pradesh

    Satellite images show that China has constructed a new village in Arunachal Pradesh, around 4.5 kilometres inside of the de facto border on the Indian side.

    Indian and Chinese soldiers have confronted each other in their deadliest clash in decades in Ladakh last year and the earlier one in Doklam. Now another front has been opened up by China in Arunachal.

    This year could face another ugliest standoffs and skirmishes.

    Location of the village

    • The village, located on the banks of the River Tsari Chu, lies in the Upper Subansiri district.
    • It is an area that has been long disputed by India and China and has been marked by armed conflict.
    • Sources in the defense ministry have said that Beijing has, for years, maintained an army post on this territory, and the various constructions by the Chinese have not happened suddenly.

    Background of the story

    • China’s June 1959 operation known as the Longju incident reportedly accused Indian troops of occupying some places in Tibet and colluding with Tibetan rebels.
    • In August same year, the PLA clashed with the Indian personnel of the 9 Assam Rifles.
    • Two Indian soldiers were killed in action and the issue was finally resolved through diplomatic channels. Both sides withdrew from the area on August 20, 1960.
    • And the Assam Rifles then did not re-occupy the post.
    • In the late 1990s however, China established a company level post 3 kilometers inside the Indian Territory. Since then, the area remains contested to this day.

    India and Arunachal

    • Arunachal Pradesh (called South Tibet in China) is a full-fledged state of India.
    • India’s sovereignty over the area is internationally recognized and its residents have not shown any inclination to leave India.
    • The majority of the international maps acknowledge the area to be an Indian Territory.
    • China has some (pre-) historical claims through its ownership of Tibet, but the people and geography primarily favor India.

    Back2Basics: Chinese claim over Arunachal Pradesh

    • When the new Peoples Republic of China was formed in February 1912 after the abdication of the Qing emperor, the Tibetans asserted their independence.
    • They forced the Chinese troops based in Lhasa to return to the mainland-via India. A year later, Tibet declared independence from China.
    • In order to ensure that the unrest did not spread to India and assert their boundaries, the ruling British convened a tripartite meeting at Shimla with Tibetan and Chinese delegates to define the border.
    • The meeting gave China suzerainty over most of Tibet, and the boundary defined in this treaty was later known as the McMohan line.

    Chinese reluctance

    • The essential dispute is over China’s refusal to acknowledge the McMohan Line as the border between the two nations, and staking claim to large tracts of land as a contiguous part of Tibet.
    • However, it laid claim to the entire state of Arunachal Pradesh.
    • In the 16th century, the most important heritage of the state – Tawang Monastery was built. This is one of the most important sites for Tibetan Buddhists.
    • China never recognized Tibet’s independence nor the 1914 Simla convention.
    • In 1950 China completely took over Tibet. Thus, according to their version, the Tawang region belongs to them.
    • It especially wants to hold on to the monastery as that is a leading center of Tibetan Buddhism in India.

  • What is Nitrogen-Use Efficiency (NUE)?

    A group of Indian scientists have found a way to improve crops by reducing wastage of nitrogen fertilizers applied to them.

    Try this PYQ:

    Q.Which of the following adds/add nitrogen to the soil?

    1. Excretion of Urea by animals
    2. Burning of coal by man
    3. Death of vegetation

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2, and 3

    Nitrogen-Use Efficiency

    • NUE is calculated as a ratio between nitrogen used and harvest: A higher number denotes low wastage.
    • With the efficiency on the decline, farmers use more fertiliser in the hope of raising yield. This in turn worsens NUE.
    • Crops generally use up 30 per cent of nitrogen fertilizer applied; the rest seeps into the environment, harming health and adding to climate change.
    • Researchers were able to identify phenotypes or visibly identifiable features that determine the efficiency with which cultivated rice varieties (cultivars) use nitrogen.
    • This efficiency is known as nitrogen-use efficiency (NUE).
    • Cereals consume over 69 per cent of nitrogen fertilizers in India; rice tops the list with 37 per cent, followed by wheat (24 per cent).

    Nitrogen Pollution: the reason behind

    • Agriculture leads to 70 per cent of nitrous oxide emissions in India.
    • Of this, 77 per cent is contributed by fertilizers, mostly urea, according to the Indian Nitrogen Assessment published in 2017.
    • This greenhouse gas (GHG) is 300 times more potent than carbon dioxide.
    • It has replaced methane as the second-largest component of GHG emissions from Indian agriculture in the past 15 years.

    Must read:

    [Burning Issue] Nitrogen Pollution in India

  • [pib] Exercise Kavach

    A large scale all-services exercise ‘Exercise Kavach’ will be conducted next week under the aegis of the Andaman and Nicobar Command (ANC), the only Joint Forces Command of the country.

    All-time generic question seeking ‘match the pairs’ can be asked from the news as such.  Click here for more exercises.

    Exercise Kavach

    • The tri-services exercise aims to fine-tune joint war-fighting capabilities and SOPs towards enhancing operational synergy in the Andaman Sea and Bay of Bengal.
    • This exercise would involve assets of Indian Army, Indian Navy, Indian Air Force and Indian Coast Guard.
    • The exercise involves synergized application of maritime surveillance assets, coordinated air and maritime strikes, air defence, submarine and landing operations.
    • Concurrently Joint Intelligence Surveillance and Reconnaissance (ISR) exercise involving various technical, electronic and human intelligence from three services will be conducted.
    • The ISR exercise will validate the capabilities of intelligence gathering from space, air, land and sea-based assets/ sensors, its analysis and sharing to achieve battlefield transparency.
    • It would carry out amphibious landing operations, air landed operation, helicopters-borne insertion of Special Forces from sea culminating in tactical follow-on operations on land.
  • Preparing for UPSC IAS 2021 and 2022? Get these things sorted| Samanvaya: Free 1 on 1 session with senior IAS mentors

    Preparing for UPSC IAS 2021 and 2022? Get these things sorted| Samanvaya: Free 1 on 1 session with senior IAS mentors

    A well-informed start is always a good start.

    Talk to senior mentors from Civilsdaily: Fill Samanvaya form for IAS 2021 and IAS 2022.

    CLICK HERE FOR A FREE 1-ON-1 MENTORSHIP SESSION

    What is the best strategy for IAS 2021 and 2022 exam? How to start preparation? What does UPSC expect? How to cover the syllabus? How to connect current affairs with static? When to start answer writing? How to plan a daily schedule and then follow it..

    You might be facing similar questions. IAS preparation is not just about memorizing and information gathering. Before you on this journey you need to get answers to these questions. (Read below about our three-tiered mentoring)

    More than 10.5 lakh applied, but only 796 are going to clear IAS 2020. It is going to be much more challenging in 2021 and 2022.

    We’ve had a discussion with 1800 aspirants who failed in Prelims 2020. Many had taken multiple attempts before that.

    Lack of direction, no guidance, inability to make required necessary changes in their preparation, and an absence of a well-defined strategy were issues common to all. (What issues are you facing? tell us)

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    Prelims 2020 in many ways was a watershed moment for IAS aspirants. It has highlighted the changing nature of UPSC and to be successful you need to adapt to the expectations of UPSC and adopt a new approach.

    For 2021 aspirants, your preparation should be highly outcome-oriented (enabling you to fetch more marks). Every action of yours must be very objectively defined, every step as a part of your strategy. Whatever you are learning must be utilizable in the exam (both pre and mains). Your preparation should have an element of measurability.

    Moreover, you need to balance both Prelims and Mains on one hand and current-static-optional on the other. Fill Samanvaya form to know how it should be done.

    It’s about how ‘you’ should be doing it instead of how someone else did it. That is the ‘elephant in the room’.

    All this stands true for 2022 aspirants as well. This is the right time to start preparation.

    Fill Samanvaya form given at the bottom of this post.

    Broadly, six factors determine your success in cracking this prestigious IAS exam and the most important being understanding the expectations of UPSC and according to that planning and strategizing; other being, Learning – Knowledge and information; Analyzing – making linkages, connections, etc.; Executing and utilizing information; and Constant course correction – because mistakes are inevitable, need to rectify them asap. Get these in order before you start for IAS 2021/22.

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  • True empowerment of the electricity consumer

    The article examines the various provisions of the Electricity (Rights of Consumers) Rules, 2020 and analyses whether or not these Rules will empower the consumers. 

    Empowering electricity consumers

    • The Electricity (Rights of Consumers) Rules, 2020 was promulgated in December to deal with the problems faced by the consumers.
    • The enactment of consumer-centric rules does spark public debate that brings the rights of consumers to the fore.
    • the Rules lay an emphasis on national minimum standards for the performance parameters of DISCOMs. without urban-rural distinction.
    • They also reiterate the need for automatically compensating consumers.

    Let’s analyse the changes introduced by the new Rule and issues with them

    Supply quality issue

    • Many States have not been able to provide quality supply, especially to rural and small electricity consumers.
    • Provisions similar to made in the new Rule already exist in the Standards of Performance (SoP) regulations of various State Electricity Regulatory Commissions (SERCs).
    • It is not because of a lack of rules or regulations that quality supply is not provided; rather, it is on account of a lack of accountability systems to enforce them.
    • Unfortunately, neither these rules nor past efforts address these accountability concerns.
    • Guarantee of round the clock supply is a provision that the Rules emphasise, which might be missing in State regulations.
    • It is difficult to enforce since the availability of power supply is inadequately monitored even at 11 kV feeders, let alone at the consumer location.
    • This highlights not only the need for implementation of existing provisions in letter and spirit but also amending them with strong accountability provisions.

    Weakening of existing provision

    • The Rules, in few cases, dilute progressive mechanisms that exist in State regulations.
    • For example, the Rules say that faulty meters should be tested within 30 days of receipt of a complaint.
    • Compared to this, regulations t in Andhra Pradesh, Bihar, and Madhya Pradesh, respectively, say that such testing needs to be conducted within seven days.
    • A similar observation can be drawn from the suggested composition of the Consumer Grievance Redressal Forum. 
    •  The Rules say that the forum — constituted to remedy complaints against DISCOMs should be headed by a senior officer of the company.
    • This is a regressive provision that would reduce the number of cases that are decided in favour of consumers.

    Lack of clarity on net-metering

    • The Rules guarantee net metering for a solar rooftop unit less than 10 kW.
    • However, there is no clarity if those above 10 kW can also avail net metering.
    • This could lead to a change in regulations in many States based on their own interpretations.
    •  The possible litigation that follows would be detrimental to investments in rooftop solar units, and would discourage medium and large consumers to opt for an environment-friendly, cost-effective option.

    Way forward

    • SERCs should assess the SoP reports of DISCOMs and revise their regulations more frequently.
    • SERCs should organise public processes to help consumers raise their concerns.
    • DISCOMs could be directed to ensure automatic metering at least at the 11 kV feeder level, making this data available online.
    • The Forum of Regulators — a central collective of SERCs — could come up with updated model SoP regulations.
    • Central agencies have taken proactive efforts to ensure regular tariff revision.
    • They could also support independent surveys and nudge State agencies to enforce existing SoP regulations.
    • The central government could disburse funds for financial assistance programmes based on audited SoP reports.

    Consider the question”What are the problems faced by the electricity consumers in India? Will the Electricity (Rights of Consumers) Rules, 2020 help consumers to deal with the existing issues?”

    Conclusion

    The governments, DISCOMs and regulators need to work jointly and demonstrate the commitment and the will power to implement existing regulations. It is not yet late to recognise this and initiate concerted efforts to truly empower consumers.

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