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  • [pib] Rashtriya Kamdhenu Aayog

    Rashtriya Kamdhenu Aayog (RKA) has started a nationwide campaign to celebrate “Kamdhenu Deepawali Abhiyan” this year on the occasion of Deepawali festival.

    Try this PYQ:

    Q.Consider the following statements:

    1. Agricultural soils release nitrogen oxides into the environment.
    2. Cattle release ammonia into the environment.
    3. Poultry industry releases reactive nitrogen compounds into the environment.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    Rashtriya Kamdhenu Aayog (RKA)

    • RKA has been constituted by PM for the conservation, protection and development of cows and their progeny and for giving direction to the cattle development programmes.
    • It is a high powered permanent body to formulate policy and to provide direction to the implementation of schemes related to cattle so as to give more emphasis on livelihood generation.

    Why need RKA?

    • Livestock economy sustains nearly 73 million households in rural areas.
    • Even though, the country is the largest producer of milk, the average milk yield in India is only 50% of the world average.
    • The low productivity is largely due to deterioration in genetic stock, poor nutrition and unscientific management.

  • [Burning Issue] Paytm vs Google App Store Row

    The altercation between technology giant Google and fintech major Paytm has brought the global debate around app store monopolies to India.

    • Paytm has been at odds with Google ever since the tech giant removed its apps.
    • Earlier this month, Paytm announced the launch of its Android Mini App Store to support Indian developers to take their innovative products to the masses.
    • Now this move has brought Google and Apple’s duopoly over being the only marketplaces for applications on their mobile operating systems into question.

    The Beginning of Row

    • Paytm received communication from Google that their ‘Paytm Cricket League’ feature violated Google Play Store’s policies.
    • Hence, the payments and financial services app Paytm was temporarily removed from the Google Play Store.
    • Paytm in turn, removed the cashback component of the feature in an effort to meet the Play Store policy requirements.
    • And the app was back within a few hours.
    • According to Google, the features were akin to promoting gambling. Paytm has now blamed Google for not offering a level-playing field.
    • The issue escalated after Federation of Indian Fantasy Sports (FIFS) asked for clarity from the Google on what is allowed on the Play Store for the fantasy sports industry.

    Surpassing Google’s monopoly: What is the Mini Apps store?

    • Mini apps are a custom-built mobile website that gives users app-like experience without having to download them, which would greatly benefit millions of citizens to save their limited data and phone memory.
    • From an infrastructure perspective, the Mini App store will enable small developers and businesses to set up low-cost, quick-to-build mini-apps which can be built using HTML and JavaScript technologies.
    • For those joining the platform, Paytm will provide a listing, distribution of these mini-apps within our app without any charges.

    The ‘Price’ of getting listed on Google Play Store

    The row has brought to the fore Google’s Play Store monopoly and its power to pull down apps that it feels violates its rules.

    • Google’s Android OS currently commands over 90 percent share of the Indian smartphone market.
    • Among the primary reasons is the market dominance of Google’s Android Operating System (OS), which comprises the Play Store.
    • There is a growing sentiment among many Indian startup founders is that Google is abusing its dominant market position to squeeze revenues out of startups and imposing hard conditions on them.
    • This is in order to avail the benefits of being listed and discoverable on the Play Store.

    The major concerns of the Indian startup community are:

    (1) Billing System:

    • Google has declared its intention to start billing apps for in app purchases, such as subscriptions, virtual coins and other special paid features.
    • This is done with objective to enforce the 30 percent commission it seeks from apps on Play Store.

    (2) Dominance

    • Google’s dominance in the Operating System (OS) market and by extension, its app store, has led to arbitrary imposition of rules or restrictions.
    • Simply put, for many startups, the cost of being outside of the Play Store’s network is too prohibitive.

    (3) Conflict of interest

    • Google being the platform for apps in India via its Play Store is also only opportunist player in the app ecosystem.
    • It is allegedly hindering others ability to acquire new customers through the “dominance” of their country’s digital ecosystem.
    • Google has a hammerlock on the Android ecosystem in India and this monopoly means companies like Paytm have to rely on Google playing fair with its rivals.

    (4) National security

    • There is a risk for Indian startups if the US does to the Indian startup ecosystem, what it did to Huawei.
    • This could be a national security issue in turn for India.

    (5) Unfair trade practices

    • Google was found guilty of abuse of dominant position and unfair trade practices by the European Commission for its strict and biased user policies.
    • It is already under investigation by the Competition Commission of India after an unidentified party complained the company was “unfairly” promoting Google Pay in India.

    Making the monopolist accountable: A not-so-feasible option

    • Taking on a giant like Google in the Indian courts involves the hefty court and legal fees, and the battle will be incredibly long drawn.
    • It’s very easy to show that Google is dominant. But under the Competition Act, one has to show that what Google is doing is unfair trade practice or it’s an abuse of dominance.
    • Indian developers might have to fight a concurrent case in the US court as well which will indecisively rule in favor of the Google.

    Way forward

    • Google’s presence in India’s digital ecosystem is only set to increase with the internet giant planning to invest $10 billion in the country over the next five to seven years.
    • All of this places a heavy responsibility on Indian regulatory authorities to implement tough oversight measures to ensure Google and other players don’t steam-roll the competition in India.
    • Presently it is upto the regulators to ensure ‘app neutrality’ in India.
    • A possible viable option for startup founders are other indigenous app stores like that of Indus OS, a Samsung-backed third-party store, has over 100 million monthly active users.

    Conclusion

    • These days, there is a growing demand within the political sphere regarding data localization in India. Foreign firms are mandated to store payments information of users locally in India.
    • And India is not even that open anymore. It has also banned more than 200 Chinese apps in recent months. But with Google’s case, there can be no leap forward.
    • Policymakers need to wake up to obvious conflicts of interest in the internet domain which need to be regulated with a measure of sophistication.
    • Regulators need to stay ahead of the curve, as the country pivots decisively towards a digital economy.

    References

    https://www.businesstoday.in/current/economy-politics/the-inside-story-of-how-paytm-google-fiasco-unfolded/story/417052.html

    https://www.thequint.com/explainers/explainer-paytm-mini-app-store-google-android-play-store-meity-indian-startups

    https://www.thehindubusinessline.com/opinion/editorial/controversy-over-google-and-paytm-underlines-the-challenge-policymakers-face/article32679063.ece

  • The federalism test

    The GST has been hailed as the grand bargain and the success story of the federalism. But the economic disruption caused by the pandemic has put it to test. The article deals with the issue of GST compensation.

    Compensating the loss of GST revenue: 2 options

    • In the 41st meeting of the GST Council, the Union government had presented the states with two options.
    • The Centre had estimated the states’ total loss of GST revenue at Rs 3 lakh crore, of which, Rs 65,000 crore was expected to accrue from the compensation cess.
    • Of the remaining Rs 2.35 lakh crore, the loss due to the pandemic was estimated at Rs 1.28 lakh crore.
    • The first option was to provide states a special window to borrow Rs 97,000 crore from the RBI, which was later revised to Rs 1.1 lakh crore.
    • Under this option, both the interest payments and the repayments would be made from future collections of the compensation cess.
    • In the second option, the entire shortfall of Rs 2.35 lakh crore could be borrowed from the market and the states would have to bear the interest costs, but the repayments would be adjusted against future collections of the cess.
    • 10 states have rejected both the options and have stated that it is the Centre’s responsibility to compensate the states, and therefore, it should borrow.

    Commitment of the Centre

    • The minutes of the 7th and 8th GST Council meeting show that most of the states wanted the Centre to commit on paying compensation from the Consolidated Fund of India (CFI).
    • On that demand the Union Finance Minister had stated that in case the amount in the GST compensation fund falls short of the compensation payable in any bi-monthly period, the GST Council shall decide the mode of raising additional resources including borrowing from the market which could be repaid by the collection of cess in the sixth year or further subsequent years.
    • Thus, there was a clear commitment of the Centre on the issue of compensation and the method of recouping the loss.

    Impact on the Centre-State relations

    • The payment of compensation has plunged the Union-state relationship to a new low.
    • First, not recognising the Centre’s commitment will make states wary of any future reforms involving an agreement with the Centre.
    • Second, giving selective press statements to pressurise the states into accepting one or the other option does not infuse confidence.
    • Third, there was a statement by the Union finance ministry officials that the GST Council does not have jurisdiction over-borrowing and borrowing is an individual state and Centre’s decision under Article 293 of the Constitution.
    • If so, why were the two borrowing options presented to the states in the meeting of the Council?

    Way forward

    • It is the Centre’s commitment to find the compensation mechanism and borrowing is one of the options — that must be discussed in the Council.
    • Furthermore, if the commitment of the Centre is recognised as admitted by the finance minister in the 7th GST council meeting, the Centre should take the responsibility to borrow.
    • Both interest payments and repayment of the principal liability can be met from future collections from the cess.

    Conclusion

    This issue is of immense significance for the future of Centre-state relations. But pressuring states on the basis of political strength will have adverse consequences for the country’s federal structure.

  • Economic recovery and its discontents

    The article highlights the measures taken by the RBI in the recent MPC meeting to assure the buyers of the Government bonds and ensuring the policy rate transmission.

    Dealing with the rate transmission issue and why it matters

    • The gap between the repo rate and the average lending rate of banks is at a record high.
    • So, the RBI and the MPC focused on improving rate transmission.
    • This gap can be broken up into two parts:
    • The first is the gap between the RBI-set repo rate and the rate at which the government of India borrows (the GSec yield).
    • It is also called the “term premium” can be influenced by the RBI’s actions.
    • The second is the gap between the GSec yield and the rate at which individuals or private firms borrow.
    • This gap reflects risk aversion in the financial system and a lack of capacity.
    • The RBI has avoided directly influencing the term premium, perhaps to maintain its credibility and independence, staying clear of accusations that it is financing the government’s fiscal deficit.
    • However, unless the rate at which the government borrows comes down borrowing costs for the whole economy will stay elevated.

    Challenge of Balance-of-Payment surplus (i.e. excess dollars)

    • Over the past few months, the country’s foreign currency reserves have been growing at an unprecedented rapid pace.
    • This means that India is getting far more dollars than it needs. Three factors are responsible for this.
    • 1) Some short-term factors responsible are weak imports and a faster normalisation of exports.
    • 2) There have also been structural shifts in India’s economic policy which point to a persistent BoP surplus.
    • In addition to low energy prices, policies supporting Atmanirbhar Bharat mean lower imports and the push towards making India a participant in global value chains mean higher exports.
    • 3) At the same time, India’s capital account is being opened up: The special-category government of India bonds, for example.

    Why BoP surplus is opportunity

    • When the excess dollar inflows turn into a deluge, as they have over the past six months, the supply of rupees in the domestic economy also becomes excessive.
    • If the RBI can direct this surplus into government bonds, it can maintain its independence and credibility, and at the same time achieve its target of rate transmission.

    Measures by the RBI to assure the bond market

    • The buyers of government bonds need to feel reassured of not getting hurt by the volatility in bond prices.
    • When bond prices rise, the yields fall, and vice versa.
    • Banks parking trillions of rupees with the RBI at 3.35 per cent overnight would earn nearly 6 per cent if they bought government bonds.
    • That they did not was because they were afraid of the bond prices falling, which would offset the gains from higher rates.
    • The increase in the Hold-To-Maturity limits by the RBI  by one year to March 2022, has assured the banks that they need not fear booking interim losses if bond prices are volatile.
    • The announcement that the RBI would purchase state and central government bonds on the market (even if in small sizes) would provide further comfort.
    • The change in assessment of inflation should help buyers of government bonds take the risk.
    • Banks or other bond investors that refrained from purchasing government bonds because they felt the RBI would increase interest rates at some point to comply with its legal mandate, would be reassured by this clear communication.
    • The targeted refinancing operations (TLTRO) should help bring down borrowing rates in the targeted industries.

    Conclusion

    Economic challenges may persist for the foreseeable future. The economic scars of the last six months are likely to take time to heal. The RBI and the MPC, which have been proactive, creative and accommodative so far, may have to stay so for a while longer.

  • IAS Prelims 2021 Strategy Lectures by Abhishek Saraf, AIR 8 (2019) | 3rd lecture live at 7:30 pm | Link inside

    Abhishek scored 140 and 129 in UPSC Pre GS paper 1 when pre cut off was 105 and 98 respectively. This will be the third of three-part lecture series by Abhishek Saraf on IAS Prelims 2021 strategy. Link for the full playlist.

    Abhishek Saraf, IAS, in this final lecture three-part lecture series will be sharing his Prelims Strategy with you all. mong things he’d be talking about are: how he attempted his pre papers?; using Civilsdaily’s Tikdams; which test series to join?; time management; and other important dimensions to IAS prelims.

    Click on the video below and Set Reminder for 7:30 pm.

    Abhishek Saraf, Lecture 3 – IAS Preilms 2021 strategy

    About Abhishek Saraf

    Abhishek is a Civil Engineering graduate from IIT Kanpur. An achiever through and through he scored this rank in his fourth attempt. Earlier he has scored a rank of 402 and 248 in UPSC 2017 (resigned in 15 days) and UPSC 2018 respectively. His optional was Civil Engineering. He is a manifestation of ‘hard work pays’ maxim. He has three research publications, two foreign internships, and a patent (pending).

    This ia a three-part lecture series by Abhishek Saraf for Civilsdaily IAS. He has been a part of the Civilsdaily family for more than 4 years now and has been a strong supporter of our approach to IAS exam preparation.

    The link for the second lecture will be shared after this lecture. Do subscribe to our Youtube channel and let us know what more we can share with you.

    Abhishek Saraf, IAS, Prelims Strategy lectures playlist:

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  • Issues with the MSP in the age of surplus production

    The author analyses the inefficiencies in the MSP regime while comparing it with the sugar sector and the milk sector. The recent agri-reform in the opinion of the author could help to make the Indian agriculture more efficient.

    MSP system Vs. Market-driven system

    • MSP regime was the creation of the era of scarcity in the mid-1960s.
    • Indian agriculture has, since then, turned the corner from scarcity to surplus.
    • In a surplus economy, unless we make agriculture demand-driven, the MSP route can spell financial disaster.
    • This transition is about changing the pricing mix — how much of it should be state-supported and how much market-driven.
    • The new laws are trying to increase the relative role of markets without dismantling the MSP system.
    • Currently, no system is perfect, be it the one based on MSP or that led by the markets, but the MSP system is much more costly and inefficient.
    • The market-led system will be more sustainable provided we can “get the markets right”.

    Issues with the MSP

    • A perusal of the MSP dominated system of rice and wheat shows that the stocks with the government are way above the buffer stock norms.
    • The economic cost (to FCI) of procured rice comes to about Rs 37/kg and that of wheat is around Rs 27/kg.
    • No wonder, market prices of rice and wheat are much lower than the economic cost incurred by the FCI.
    • So, grain stocks with the FCI cannot be exported without a subsidy[i.e. export below the cost], which invites WTO’s objections.
    • The FCI’s burden is touching Rs 3 lakh crore which is not reflected in the Central budget as the FCI is asked to borrow more and more.
    • The FCI can reduce costs if it uses policy instruments like “put options”.

    2 Lessons: from sugarcane and milk pricing

    1) Populism resulted in making sugar industry globally non-competitive

    • In the case of sugarcane, the government announces a “fair and remunerative price” (FRP) [not MSP]to be paid by sugar factories [not paid by the Government].
    • While some states like Uttar Pradesh announces its own “state advised price” (SAP).
    • The sheer populism of SAP has resulted in cane arrears amounting to more than Rs 8,000 crore, with large surpluses of sugar that can’t be exported.
    • This sector has, consequently, become globally non-competitive.
    • Unless sugarcane pricing follows the C Rangarajan Committee’s recommendations the problems of the sugar sector will not go away.

    2) Success story of milk sector

    • In the case of milk co-operatives, pricing is done by the company in consultation with milk federations.
    • It is more in the nature of a contract price.
    • It competes with private companies, be it Nestle, Hatsun or Schreiber Dynamix dairies.
    • The milk sector has been growing at a rate two to three times higher than rice, wheat and sugarcane.
    • Today, India is the largest producer of milk — 187 million tonnes annually.

    So, how the recent reforms will help the farmers

    •  As a result of changes in farm laws in the next three to five years companies will be encouraged to build efficient supply lines somewhat on the lines of milk.
    • These supply lines — be it with farmers producer organisations (FPOs) or through aggregators — will, of course, be created in states where these companies find the right investment climate.
    • These companies will help raise productivity, similar to what has happened in the poultry sector.
    • Milk and poultry don’t have MSP and farmers do not have to go through the mandi system paying high commissions, market fees and cess.

    Conclusion

    The pricing system has its limits in raising farmers’ incomes. More sustainable solutions lie in augmenting productivity, diversifying to high-value crops, and shifting people out of agriculture to high productivity jobs elsewhere, the recent reforms are the steps in this direction.

    Back2Basic: What is MSP

    • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
    • The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • The minimum support prices are a guarantee price for their produce from the Government.
    • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
    • In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price.

    What are ‘put options’

    • Put options give holders of the option the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.
    • Put options are available on a wide range of assets, including stocks, indexes, commodities, and currencies.
    • Put option prices are impacted by changes in the price of the underlying asset, the option strike price, time decay, interest rates, and volatility.
    • Put options increase in value as the underlying asset falls in price, as volatility of the underlying asset price increases, and as interest rates decline.
    • They lose value as the underlying asset increases in price, as volatility of the underlying asset price decreases, as interest rates rise, and as the time to expiration nears.

     

  • 12th October 2020| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 13th October-

    GS-1 Distribution of key natural resources across the world.

    GS-4 Emotional Intelligence.

    Question 1)

    The share of the elderly in the population is expected to increase to 20 per cent of the population by 2050. Thus to ensure a life of dignity, social security and safety, enabling them to actively participate in economic development and the process of nation building is an absolute necessity. Discuss. 10 marks

    Question 2)

    The interpretation of the constitution by the judiciary has changed over the years in recent times, trace the change in approach of judiciary and explain with suitable examples. 10 marks

    Question 3)

    “Digital literacy is integral for financial inclusion.” Comment in the background of India’s efforts to expand access to organized financial systems through digital payments. 10 marks

    Question 4)  

    “Attitude is a little thing that makes a big difference”. Examine with respect to successful implementation of government schemes. 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

  • 15 Years of Right to Information

    Fifteen years after the Right to Information (RTI) Act came into force; more than 2.2 lakh cases are pending at the Central and State Information Commissions, which are the final courts of appeal under the transparency law.

    Try this question:

    Q.“RTI is a tool for empowering ordinary citizens and changing the culture of governance in India.” Discuss.

    Right to Information

    • RTI is an act of the parliament which sets out the rules and procedures regarding citizens’ right to information.
    • It replaced the former Freedom of Information Act, 2002.
    • Under the provisions of RTI Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within 30.
    • In case of the matter involving a petitioner’s life and liberty, the information has to be provided within 48 hours.
    • The Act also requires every public authority to computerize their records for wide dissemination and to proactively publish certain categories of information so that the citizens need minimum recourse to request for information formally.

    Governing of RTI

    The Right to information in India is governed by two major bodies:

    1. Central Information Commission (CIC) – Chief Information commissioner who heads all the central departments and ministries- with their own public information officers (PIO)s. CICs are directly under the President of India.
    2. State Information Commissions (SIC)– State Public Information Officers or SPIOs head over all the state department and ministries. The SPIO office is directly under the corresponding State Governor.
    • State and CIC are independent bodies and CIC has no jurisdiction over the SIC.

    Fundamental status of RTI

    • RTI is a fundamental right for every citizen of India.
    • Since RTI, is implicit in the Right to Freedom of Speech and Expression under Article 19 of the Indian Constitution, it is an implied fundamental right.

    Limitation to RTI

    • Information disclosure in India is restricted by the Official Secrets Act 1923 and various other special laws, which the new RTI Act relaxes.
    • RTI has proven to be very useful but is also counteracted by the Whistle Blowers Protection Act, 2011.

  • FELUDA test for Covid-19

    Union Health Ministry will soon roll out the FELUDA paper strip test for SARS-CoV-2 diagnosis.

    Try this PYQ:

    Q.What is Cas9 protein that is often mentioned in news?

    (a) A molecular scissors used in targeted gene editing

    (b) A biosensor used in the accurate detection of pathogens in patients

    (c) A gene that makes plants pest-resistant

    (d) A herbicidal substance synthesized in genetically modified crops

    FELUDA test

    • FELUDA is the acronym for FNCAS9 Editor Linked Uniform Detection Assay.
    • It uses indigenously developed CRISPR gene-editing technology to identify and target the genetic material of SARS-CoV2, the virus that causes Covid-19.
    • According to CSIR, the test matches accuracy levels of RT-PCR tests, considered the gold standard in the diagnosis of Covid-19, has a quicker turnaround time and requires less expensive equipment.
    • It is also the world’s first diagnostic test to deploy a specially adapted Cas9 protein to successfully detect the virus.

    How does it work?

    • The Feluda test is similar to a pregnancy test strip that will just change colour upon detection of the virus and can be used in a simple pathological lab.
    • The Cas9 protein is bar-coded to interact with the SARS-CoV2 sequence in the patient’s genetic material.
    • The Cas9-SARS-CoV2 complex is then put on the paper strip, where using two lines (one control, one test) makes it possible to determine if the test sample was infected.

    Back2Basics: CRISPR technology

    • CRISPR is a short form for Clustered Regularly Interspaced Short Palindromic Repeats.
    • It is a gene-editing technology and finds its use in correcting genetic defects and treating and preventing the spread of diseases.
    • The technology can detect specific sequences of DNA within a gene and uses an enzyme functioning as molecular scissors to snip it.
    • It also allows researchers to easily alter DNA sequences and modify gene function.
    • Moreover, the technology can also be configured for detection of multiple other pathogens in the future.

  • 8 Indian beaches accorded ‘Blue Flag’ tag

    Eight Indian beaches have got an International Blue Flag Certification, said Union Minister of Environment, Forest and Climate Change.

    Note the beaches and their respective states. They can be asked in the ”match the pairs” type questions.

    Citation needed: *As of now, there are 13 Blue flag awarded beaches in India a/c to wikipedia. But Blue Flag website would provide exact figures (which yet to update the official numbers).

    Which are these beaches?

    1. Shivrajpur (Dwarka-Gujarat)
    2. Ghoghla (Diu)
    3. Kasarkod [NOT Kasargod which is in Kerala] and Padubidri (Karnataka)
    4. Kappad (Kerala)
    5. Rushikonda (AP)
    6. Golden Beach (Odisha) and
    7. Radhanagar (A&N Islands)

    Blue Flag Beaches

    • The ‘Blue Flag’ beach is an ‘eco-tourism model’ and marks out beaches as providing tourists and beachgoers clean and hygienic bathing water, facilities/amenities, a safe and healthy environment, and sustainable development of the area.
    • The certification is accorded by the Denmark-based Foundation for Environment Education.
    • It started in France in 1985 and has been implemented in Europe since 1987, and in areas outside Europe since 2001 when South Africa joined.
    • It has 33 stringent criteria under four major heads for the beaches, that is, (i) Environmental Education and Information (ii) Bathing Water Quality (iii) Environment Management and Conservation and (iv) Safety and Services.

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