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  • Shale and its potential in India

    Cairn Oil & Gas has announced that it is partnering US-based Halliburton to start shale exploration in the Lower Barmer Hill formation, Western Rajasthan.

    What is Shale oil?

    • Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution.
    • These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas.
    • The refined products can be used for the same purposes as those derived from crude oil.

     How does it differ from conventional crude oil?

    • The key difference between shale oil and conventional crude is that the former, also called ‘tight oil’, is found in smaller batches, and deeper than conventional crude deposits.
    • Its extraction requires creation of fractures in oil and gas rich shale to release hydrocarbons through a process called hydraulic fracking.

    What is fracking?

    • Fracking is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside.
    • Water, sand and chemicals are injected into the rock at high pressure which allows the gas to flow out to the head of the well.
    • The process can be carried out vertically or, more commonly, by drilling horizontally to the rock layer, which can create new pathways to release gas or used to extend existing channels.
    • The term fracking refers to how the rock is fractured apart by the high-pressure mixture.

    Shale production in the world

    • Russia and the US are among the largest shale oil producers in the world.
    • With a surge in shale oil production in the US, it has played a key role in turning the country from an importer of crude to a net exporter in 2019.

    Shale reserves in India

    • As per the US EIA 2015 report, India has got technically recoverable shale gas of 96 trillion cubic feet.
    • The recoverable reserves are identified in Cambay, Krishna – Godavari, Cauvery, Damodar Valley, Upper Assam, Pranahita – Godavari, Rajasthan and Vindhya Basins.
    • The ONGC has drilled the first exploratory shale gas well in Jambusar near Vadodara, Gujarat, in Cambay basin during October 2013.

    What are the prospects of shale oil exploration in India?

    • Currently, there is no large-scale commercial production of shale oil and gas in India.
    • Shale oil and gas exploration faces several challenges other than environmental concerns around massive water requirements for fracking and potential for ground water contamination.
    • State-owned ONGC had, in 2013, started exploration and, by the end of FY21, assessed shale oil and gas potential in 25 nomination blocks.
    • But it has reduced investments over the past few years after only getting limited success in shale exploration efforts.

     

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  • What is Cartelization?

    The Competition Commission of India (CCI) has slapped certain penalties on paper manufacturing companies from agricultural waste and recycled wastepaper against Cartelization.

    What is a Cartel?

    • According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”.
    • The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition.
    • The three common components of a cartel are:
    1. an agreement
    2. between competitors
    3. to restrict competition

    What is Cartelization?

    • Cartelization is when enterprises collude to fix prices, indulge in bid rigging, or share customers, etc.
    • But when prices are controlled by the government under a law, that is not cartelization.
    • The Competition Act contains strong provisions against cartels.
    • It also has the leniency provision to incentivise a party to a cartel to break away and report to the Commission, and thereby expect total or partial leniency.
    • This has proved a highly effective tool against cartels worldwide.
    • Cartels almost invariably involve secret conspiracies.

    How do they work?

    • According to ICN, four categories of conduct are commonly identified across jurisdictions (countries). These are:
    1. price-fixing
    2. output restrictions
    3. market allocation and
    4. bid-rigging
    • In sum, participants in hard-core cartels agree to insulate themselves from the rigours of a competitive marketplace, substituting cooperation for competition.

    How do cartels hurt?

    • While it may be difficult to accurately quantify the ill-effects of cartels, they not only directly hurt the consumers but also, indirectly, undermine overall economic efficiency and innovations.
    • A successful cartel raises the price above the competitive level and reduces output.
    • Consumers choose either not to pay the higher price for some or all of the cartelized product that they desire, thus forgoing the product, or they pay the cartel price and thereby unknowingly transfer wealth to the cartel operators.

    Are there provisions in the Competition Act against monopolistic prices?

    • There are provisions in the Competition Act against abuse of dominance.
    • One of the abuses is when a dominant enterprise “directly or indirectly imposes unfair or discriminatory prices” in purchase or sale of goods or services.
    • Thus, excessive pricing by a dominant enterprise could, in certain conditions, be regarded as an abuse and, therefore, subject to investigation by the Competition Commission if it were fully functional.
    • However, it should be understood that where pricing is a result of normal supply and demand, the Competition Commission may have no role.

    How might cartels be worse than monopolies?

    • It is generally well understood that monopolies are bad for both individual consumer interest as well as the society at large.
    • That’s because a monopolist completely dominates the concerned market and, more often than not, abuses this dominance either in the form of charging higher than warranted prices or by providing lower than the warranted quality of the good or service in question.

    How to stop the spread of cartelization?

    • Cartels are not easy to detect and identify.
    • As such, experts often suggest providing a strong deterrence to those cartels that are found guilty of being one.
    • Typically this takes the form of a monetary penalty that exceeds the gains amassed by the cartel.
    • However, it must also be pointed out that it is not always easy to ascertain the exact gains from cartelization.
    • In fact, the threat of stringent penalties can be used in conjunction with providing leniency — as was done in the beer case.

    Back2Basics: Competition Commission of India (CCI)

    • The CCI is the chief national competition regulator in India.
    • It is a statutory body within the Ministry of Corporate Affairs.
    • It is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.

     

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  • 19th November 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1    Social Empowerment, Communalism, Regionalism & Secularism.

    GS-2     Executive and Judiciary

    GS-3     Internal Security

    GS-4    Public/Civil Service Values and Ethics in Public Administration: Status and Problems; Ethical Concerns and Dilemmas in Government and Private Institutions; Laws, Rules, Regulations and Conscience as Sources of Ethical Guidance

    Questions:

    Question 1)

     

    Q.1 What do you understand by the term secularism? Discuss how Indian concept of secularism is broader than western concept? (15 Marks)

     

    Question 2)

    Q.2 Highlighting the significance of Fast Track Courts (FTCs) in India, discuss the issues plaguing their functioning. Also, suggest some measures to improve their functioning. (10 Marks)

    Question 3)

    Q.3 Explain how crypto-currencies can emerge as a new vehicle for money laundering or terrorist financing. (10 Marks)

    Question 4)  

    Q.4 How can organizational culture impact public service motivation and sustain values in administration? (10 Marks)

     

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

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

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

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

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

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

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

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

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

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

    For the philosophy of AWE and payment: 

    CLICK HERE To join Daily AWE

  • Puri Heritage Corridor Project

    Odisha CM will lay the foundation stone of the much-awaited Puri Heritage Corridor.

    Puri Heritage Corridor Project

    • Conceived in 2016, the Puri Heritage Corridor Project was unveiled in December 2019 to transform the holy town of Puri into an international place of heritage.
    • The project includes redeveloping major portions of the holy town and in the vicinity of the temple for visitors and tourists.

    About Jagannath Temple

    • The Jagannath Temple is an important Vaishnavite temple dedicated to Jagannath, a form of Sri Krishna in Puri in Odisha.
    • The present temple was rebuilt from the 10th century onwards, on the site of an earlier temple, and begun by Anantavarman Chodaganga Deva, the first king of the Eastern Ganga dynasty.
    • The Puri temple is famous for its annual Ratha Yatra, or chariot festival, in which the three principal deities are pulled on huge and elaborately decorated temple cars.

    Its architecture

    • With its sculptural richness and fluidity of the Oriya style of temple architecture, it is one of the most magnificent monuments of India.
    • The huge temple complex covers an area of over 400,000 square feet and is surrounded by a high fortified wall.
    • This 20 feet high wall is known as Meghanada Pacheri.
    • Another wall known as kurma bedha surrounds the main temple.

    The temple has four distinct sectional structures, namely:

    1. Deula, Vimana or Garba griha (Sanctum sanctorum) where the triad deities are lodged on the ratnavedi (Throne of Pearls). In Rekha Deula style;
    2. Mukhashala (Frontal porch);
    3. Nata mandir/Natamandapa, which is also known as the Jagamohan (Audience Hall/Dancing Hall), and
    4. Bhoga Mandapa (Offerings Hall)

     

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  • What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    REGISTER FOR FREE Q&A WEBINAR WITH IAS OFFICER VAIBHAV RAWAT (AIR 17, UPSC 2020)

    “Prelims, Mains and Interview are 3 stages of pilgrimages and I found all of them equally challenging”, says Vaibhav Rawat IAS after securing All India Rank 25 in UPSC 2020 Exam.

    He started his preparation in 2018 without any idea of what was civil services or the challenging syllabus of UPSC. Fresh out of his job in Samsung R&D, Vaibhav initially faced umpteen difficulties in understanding or remembering what he had read. However, with daily studies there was an improvement and he was slowly able to master the topics. In his first attempt, Vaibhav reached till interview stage but missed out on the final ranking by a whisker. After this, he took the mentorship of Sajal Sir to score high marks in Mains and Interview. Vaibhav proves the saying that, successful people are not gifted but they work hard.

    Upon finding his name in the final pdf, Vaibhav asserts that his parents are more happier than him. For Vaibhav, there is only relief as he doesn’t have to start the exhausting cycle of UPSC preparation all over again.

    Open to All, Free to Attend—Ask me Anything Session with Vaibhav Rawat IAS

    Vaibhav Rawat is geared up for an Ask me Anything Session with all Civilsdaily UPSC aspirants. For anyone wanting tips on certain topics, preparing for UPSC Mains in the last 3 months or suggestions on improving their marks, this session will be useful. Your questions will be Vaibhav’s answers which are drawn from his own experiences. Just register yourself with us as soon as possible to confirm your presence.

    Key Takeaways of Vaibhav Rawat’s Webinar

    1. Importance of having a role model. Who was Vaibhav Rawat’s idol and how did that help him stay calm and focused towards his goals?

    2. Unpredictability of UPSC . What to study when you are not sure of the type of questions which would come in the exam?

    3. The art of answer writing in Mains. What are few of the common practices Vaibhav followed in the Mains exam?

    4. Memory techniques followed by Vaibhav Rawat. What did he do to recall important dates, names, statistics, conventions for the exam?

    5. First Attempt v/s Second Attempt. How did Vaibhav approach prelims, mains and interview preparation?

    6. Tips for beginners. Why is it better to work for a year or two before preparing for UPSC?

    A major part of the session would be interactive and in Q&A format. This will surely benefit any aspirant who are in midway of their preparation.

    Webinar Details

    If you are studying hard but are unsure that you are studying right, then its time to get some assurance from the topper himself! Register for this free webinar by IAS officer Vaibhav Rawat.

    Date: 22 November 2021 (Monday)

    Time: 7 P.M

    REGISTER FOR FREE Q&A WEBINAR WITH IAS OFFICER vaibhav rawat (air 17, upsc 2020)

  • [Sansad TV] Perspective: North East Infra in Focus

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    Context

    • Several initiatives have been undertaken by the Centre Government to develop North Eastern Region holistically for improving basic infrastructure and providing connectivity in the region.
    • In this article, we shall discuss and analyse all these challenges and initiatives taken for Infrastructure Development in the NE region of our country.

    North-East India: A Backgrounder

    • The Northeast region of India comprises eight states- Assam, Nagaland, Manipur, Arunachal Pradesh, Mizoram, Tripura and Sikkim.
    • According to 2011 census this 3.78% of country’s population resides in this region.
    • It also comprises approx. 7.98% of country’s area including 5,483 Km of India’s international borders.
    • These eight states also constitute 3.37% of country’s total agriculture land holding and 34.5% of the total bamboo bearing area in the country.

    Various associated issues

    [A] Security

    (i) Leftist insurgency

    • The Maoist rebellion in Northeast India is at present in its ‘latent phase’. It basically involves arms dumps and identification of local militant elements.
    • However, these days, militancy and extortion has become an organised activity in the region and is one of the major sources of funds for the militants.

    (ii) Drug smuggling

    • Golden Triangle comprises of the regions of Thailand, Laos, and Myanmar it has been one of the largest opium-producing areas of the world since the 1950s.
    • Drugs produced there enters into India through Mizoram, Manipur, and Nagaland from Bhamo, Lashio, and Mandalay in Myanmar.
    • Moreh (Manipur), Champai (Mizoram), Dimapur (Nagaland), and Guwahati (Assam) have become the nucleus of drug trafficking industry in India’s northeast.

    [B] Developmental issue: Connectivity with mainland

    • The NER is connected to mainland India only through a narrow stretch of land (about 22 km wide) in West Bengal called the ‘Siliguri Corridor’, sometimes known as the “Chicken’s Neck”.
    • Except for this narrow Siliguri Corridor, the entire northeastern part of the country is bound by international borders.

    [C] Sovereignty threats

    • Neighbouring countries like China and Myanmar are accused of promoting insurgency in the region.
    • China’s claim on Arunachal Pradesh and its water diversion plans on the Yarlung Tsangpo in Tibet are creating a public perception in the northeast that China is a threat to India.
    • This has created positive influences on the minds of the insurgents .

    [D] Sub-national aspirations

    • The region is populated by a number of different communities, with diverse cultures, languages and customs.
    • It is also marked by difficult terrain, backward areas, and limited connectivity. This area was known for the active presence of a number of militant groups.

    Key issues:

    1. Demands for autonomy: This demand arose in Tripura and Manipur which compromised the state of Assam. This majorly arose when the non-Assamese political leaders felt that the Assamese was forcibly imposed upon them.

    2. Secessionist Movement: The Mizo hills area in Mizoram never felt that they were under the British therefore after independence they did not consider themselves as part of India. Several campaigns started to be independent states.

    3. Movements against outsiders: This issue has taken place in several states of the Northeast. The Assam movement was such a movement against outsiders because they suspected that there were huge numbers of illegal migrants from Bangladesh.

    Root causes of turmoil in NE

    • Colonial past: The connection between the NER and the rest of India is relatively recent, dating back to 1826 with the signing the Treaty of Yandaboo.
    • No historical ties: It was when Burma ceded Assam, Manipur, Jaintia hills, Tripura and Cachar to the British at the end of the First Anglo-Burmese War.
    • Heavy militarization and AFSPA: Even under the British, the region was mostly seen as providing a ‘buffer zone’ from Burma and China. This perspective continued after independence leading to heavy militarization.
    • Abrupt integration: The integration of NER into the rest of the country was ‘abrupt’, with no prior history. The states were integrated and demarcated into ad hoc units for administrative convenience.
    • Political disconnect: The participation of the northeastern state governments in any development activity is nearly non-existent. Politics for them has merely left to Tribal Affairs.
    • Local aspirations: The region’s own politics or the political aspirations of fragmented tribes were marginalised within the larger political discourse.
    • Others: Inflation is another fuel to the turmoil. Distribution is mostly road-based and disruptions in movement, particularly during the six-month-long rainy season, causes sporadic fuel scarcity in the hill States.

    Opportunities in the NER

    [A] Tourism

    • NE Region of India has immense resource potential to develop tourism.
    • Assam is the leading state in terms of overall inflow of tourists’ in the region while Sikkim proves to be preferred destination of foreign tourists.
    • The region offers enchanting visits for tourists interested in wild life, religious, cultural and ethnic tourism, river cruises, golf and a host of others.

    [B] Emerging market

    • The North East is a fast-growing market with untapped opportunities for investment, trade and tourism.
    • It has the potential to become a nodal point of India’s growth story.
    • It is abundantly endowed with natural resources, mineral and forest wealth, diverse flora and fauna and fertile land for cultivation of exotic fruits and vegetables.

    [C] Agricultural Potential

    • Traditionally, the North East is known for tea, but it could also offer plantation and export opportunities for a wide range of crops including oil palm.
    • Similarly, the region has about 50 species of bamboo, 14 varieties of bananas and 17 varieties of citrus fruits.
    • North-Eastern states also have a huge production of fruits such as pineapples and oranges.

    [D] Rich mineral resources

    • The Northeast region of India has an abundant mineral comprising chiefly of lime- stone, coal, natural oil and gas, uranium, feldspar, and others.
    • The total hydrocarbon deposits (oil and gas) accounts for 20% of the total India.

    [E] Gateway to the East

    • The NE region is a vantage entry point to south-eastern Asian markets.
    • Given its location, the Northeast assumes the role of bridging the space between mainland India and other Southeast Asian nations.
    • Taking this idea forward, the government decided to focus more on improving its relation with ASEAN and the East Asian countries.
    • It was also aimed at eliminating the insurgency problem in the NE once and for all by way of opening up the region to Southeast Asia.

    Connectivity in the region

    (A) Road

    • Under Bharatmala Pariyojana (BMP) roads stretches aggregating to about 5301 km in NER have been approved for improvement.
    • Out of this, 3246 km road length has been approved for development of Economic Corridors in the North East.
    • Under Pradhan Mantri Gram Sadak Yojana, road length of 20,708 km has been already constructed.
    • Other major development include construction of bridges of over the Brahmaputra to narrow down distances.

    (B) Railway

    • There are plans to provide a railway link for the NE states through 20 major railway projects, encompassing 13 new lines with a length of nearly 2,624 kms.
    • The Murkongselek (Assam) and Pasighat rail project is already under implementation.
    • The most important of them is 378-km Bhalukpong (West Kameng, Arunachal)-Tenga (Arunachal)-Tawang (Arunachal) rail connectivity that will reach a height of 10,000 ft to the Tibet border.

    (C) Air connectivity

    • The Pakyong Airport in Sikkim is the first greenfield airport in Northeast India. It is situated around 30 kilometers from Gangtok.
    • The launch of the UDAN regional air connectivity scheme (2016) saw a number of new air links in the region.
    • The most important of them is Pasighat (2018), the first-ever commercial air link to Arunachal.

    (D) Digital connectivity

    • Telecom Commission has approved a comprehensive strategy to implement BharatNet in North East Region (NER).
    • Under this strategy, 4240 Gram Panchayats (GPs) in the North-East are to be connected by broadband and by satellite connectivity.

    Way forward

    (i) Infrastructure and connectivity

    • These are two basic requirements essential for economic development of a region.
    • The need for infrastructure becomes more acute for hilly and mountainous areas that are on one hand difficult to traverse and on the other hand tend to be sparsely populated.
    • Thus, there is a need for heavy investments in infrastructure development.

    (ii) Timely completion of projects

    • Most North Eastern States are resource-starved and it is vital that funds are properly accounted for.  
    • In addition, projects that are retained and put on priority lists raise the expectations of the people.
    • This further contributes towards deficits in confidence of the people upon the Central Government.

    (iii) Single nodal agency

    • Another challenge is that there are multiple bodies and agencies like the NEC, DoNER and the recently created North East Forum.
    • There is a need for clarity on the roles between these bodies and budgets need to be allocated to the States.
    • Flexibility should be allowed for the State governments for utilization of these allocations.

    (iv) Tourism

    • Tourism is one of the alternatives that can play a pivotal role in the socio-economic development of the NER.
    • The challenge lies in making the region accessible to the tourists from mainland India and other countries.
    • Sense of integration can be imbibed through various projects such as Dekho Apna Desh etc. among the NE youth.

    Conclusion

    • It is evident fact that, for a long time, the North East was a neglected and forgotten part of the country.
    • The region has great potential to develop not just as a self, sustaining economic unit of India but also contribute to the success story of the country.
  • Meeting Link Inside|| Register & Join Now|| Free Webinar by Santosh Gupta Sir who Cleared Prelims 6/6 Times

    Meeting Link Inside|| Register & Join Now|| Free Webinar by Santosh Gupta Sir who Cleared Prelims 6/6 Times

    “Maximize your score in Prelims-2022 through 7 steps” || by Santosh Gupta

    Date & Time: Nov 18, 2021 @07:00 p.m. (start logging in by 06:45 p.m.) India
    Join Zoom Meeting: https://zoom.us/j/99188423499pwd=dklVVVdrRmlRK2dHR2h4eEtTTDhSZz09
    Meeting ID: 991 8842 3499

    Passcode: 534582

    REGISTER FOR FREE PRELIMS ORIENTATION WEBINAR BY SANTosH GUPTA SIR

    Let’s admit this — As much as we have heard our seniors, mentors and toppers advise us to answer fewer questions in Prelims exams due to negative marking, do we want to follow it? All of us wish to answer as many questions as possible correctly. However, post 2014 questions have started getting tougher so much that now –

    “Prelims is no longer about selecting the right option. It’s searching for the correct option by eliminating the incorrect ones.”

    Let’s take a sample question from Prelims 2021 Paper —

    Constitutional government means

    1. a representative government of a nation with federal structure
    2. a government whose Head enjoys nominal powers
    3. a government whose Head enjoys real powers
    4. a government limited by the terms of the Constitution

    An average aspirant gets confused between 2-3 options. Option a), b) and d) look equally correct but you have to select only one. The right answer is option d). How can you find out what was the missing criteria in option a) and b) which option d) fulfilled to emerge as the right answer?

    Attend the free webinar by Santhosh sir to get the answer.

    REGISTER FOR FREE PRELIMS ORIENTATION WEBINAR BY SANTHOSH GUPTA SIR

    Key Takeaways of Santosh Gupta Sir’s Free Prelims Orientation Webinar

    1. Complete Analysis of the 2021 Prelims Paper. How to change your preparation methods right now?

    2. The 7 Steps of Tackling Prelims 2022. How to maximize revision and minimize study materials?

    3. Significance of Current Affairs. Is it really declining in Prelims?

    4. Important Topics to Cover for Prelims 2022 for every subject. What are the correct study materials for these topics?

    5. Time-Tested Elimination Techniques. How to use these techniques in sample questions?

    Webinar Details

    Prelims question papers have become more or less like a game of Sudoko. Except, in Sudoko you can solve the puzzle at your leisure and over here you are limited by 2 hours. We hope this webinar will help all 2022 aspirants implement the suggestions of Santosh Gupta Sir.

    Date: 18 November 2021 (Thursday)

    Time: 7 P.M

    REGISTER FOR FREE PRELIMS ORIENTATION WEBINAR BY SANTosH GUPTA SIR

    About Santosh Gupta Sir

    Santosh sir has scored above 140 twice in UPSC prelims and 120 plus in all 6 attempts. He has written all 6 mains and has appeared for Interviews 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. As the Prelims coordinator at Civilsdaily, he has helped 15 out of 25 students clear the prelims examination this year.

  • Formal sector and fine print

    Context

    A recent study by SBI has reported that the Indian economy witnessed accelerated formalisation under the distressed conditions of the pandemic and the lockdown last year. The study estimates that the share of the informal economy has fallen to a mere one-fifth of GDP — a figure comparable to many advanced economies.

    Understanding informality

    • ILO definition: The ILO’s globally accepted framework for definitions is as follows: Informal sector enterprises are defined as private unincorporated enterprises owned by individuals (or households) that are not constituted as separate legal entities independently of their owners.
    • They are not registered under specific national legislation (such as Factories’ or Commercial Acts).
    • Definition of a formal worker in India: Formal workers in India, on the other hand, are defined as those having access to at least one social security benefit such as a provident fund or healthcare benefits.

    What explains the decline of informal sector in GDP

    • Significance of informal sector: In 2017-18, as per the latest official statistics, India’s informal sector accounted for approximately 52 per cent of its GDP, employing 82 per cent of the total workforce.
    • These ratios have broadly remained unchanged over the last decade.
    • Most affected due to pandemic: As the informal (unorganised) sector bore much of the brunt of the economic contraction during 2020-21, a decline in its share in GDP is unsurprising.
    • Lack of financial strength: The sector had neither the financial strength nor the technical wherewithal to face the Covid shock.
    • Inadequate policy support: Additionally, policy support, mostly supply-side measures, was mainly focused on firms in the formal sector, with the informal sector left to fend for itself.

    Issues with decline

    • Undeniably, the informal sector’s share in GDP is likely to have shrunk due to the Covid shock.
    • However, alarmingly, the purported decline in the informal sector’s share in GDP has not been accompanied by an expected reduction in its employment share. 
    • Data from the official annual Period Labour Force Survey (PLFS) 2017-18 and 2019-20, where the latter includes the period of the Covid shock from April to June 2020, shows that the employment share in non-agricultural informal enterprises has increased from 68 per cent in 2017-18 to 69.5 per cent in 2019-20.
    • These figures do not include the agricultural sector, where employment is almost entirely in the informal sector.
    • The increasing share of the formal sector in terms of GDP but declining share in employment only widens the schism (or dualism) between the two sectors.
    • The increasing share of the formal sector in terms of GDP but declining share in employment only widens the schism (or dualism) between the two sectors.

    Implications

    • Impact on investment and growth: The lack of remunerative jobs for the vast majority of Indian consumers implies that eventually the lack of growth in demand will adversely impact investment and economic growth.
    • After all, a mere 17-18 per cent of the workforce in the organised sector cannot sustain growth of the economy in the long run.
    •  Squeezing out informal enterprises: The increase in the formal sector’s share in GDP due to Covid-19 is a result of large, formal enterprises squeezing out informal enterprises.
    • It is important to note here that the increase in formalisation is not a consequence of micro and small informal firms transitioning to formality.

    Increasing productivity: A way forward to formalisation

    • Promoting formalisation: Over the last five years, the economy has officially witnessed a significant drive towards formalisation.
    • Multiple reasons for avoiding formalisation: It is crucial to recognise that firms exist in the informal sector for various reasons and not simply to evade regulations and taxation.
    • Significance of productivity: Many own account enterprises and MSMEs cannot afford to survive in the formal sector due to their low productivity.
    • It is essential to view the process of formalisation as a development strategy that requires stepping up investment in physical and human capital to boost productivity and the extension of social security benefits for all workers, not just a registration strategy on myriad portals.

    Consider the question “Informal sector has been affected disproportionately in the wake of the pandemic. What are the implications of this for the economy? Suggest the way forward for the formalisation.”

    Conclusion

    The informal sector will come back to life as much of it represents the survival efforts of the working poor. Celebrating formalisation based on the misery and devastation of poor informal workers (and their meagre productive assets) is not just misplaced but also callous.

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  • A collaborative tech vision for US, UAE, Israel and India

    Context

    Last month’s meeting between the foreign ministers of India, the US, Israel, and the UAE has set foreign policy circles in India abuzz with talks of the potential emergence of another quadrilateral grouping or as analysts term it, a “new Quad”.

    Significance of the new Quad meeting

    • Collaboration in various areas: The grouping discussed technology collaboration along with the joint infrastructure projects in transportation, enhancing political and economic cooperation and maritime security matters.
    • Forum for economic cooperation: They have agreed to set up an international forum for economic cooperation.
    • Collaboration on technology: Amongst all the issues discussed, the technology dimension of this partnership promises a far greater potential for collaboration.
    • The four countries are uniquely placed to shape an innovation-based partnership, which can conjoin the technology hubs of Silicon Valley, Dubai, Tel Aviv, and Bengaluru.
    • Such potential collaboration can benefit from the existing robust cooperation between these countries.
    • Collaboration in fintech: The agreement between Start-Up Nation Central, an Israeli non-profit that connects the tech ecosystem, and Dubai International Financial Centre, the UAE’s financial hub, will create regulatory sandboxes and accelerators for start-ups and provide them with market access opportunities.
    • India and the US have been separately working with the two countries on multiple projects.

    New Quad’s technology cooperation

    • Tech-based collaboration: Given the synergies in the innovation and startup sector, it is logical that the “new Quad” works towards tech-based collaboration.
    • The agenda for the new Quad’s technology cooperation can begin by selecting three technologies — quantum science, blockchain, and 3D printing.
    • Collaboration in quantum technology: Israel and the US, too, have made research on quantum technology a priority by allocating $91 million and $1.2 billion respectively to this sector.
    • India is also fast catching up through its National Mission on Quantum Technologies and Applications and joining hands with countries like France to work on this technology.
    • Collaboration in the blockchain:  in blockchain, India and the UAE can leverage the American and Israeli expertise in cyber and cryptography to craft customised applications for use in banking, fintech and trade financing.
    • Collaboration in 3-D printing: In 3D printing, which promises to transform the manufacturing process radically, Israel has taken the lead in manufacturing about 40 per cent of 3D printers worldwide.
    • India, in contrast, has been slow in getting onto the 3D printing bandwagon. But it can certainly benefit from the expertise of the US, Israel and the UAE.
    • Opportunity for India: From the Indian perspective, such partnerships can leverage Silicon Valley’s venture capital funding, Tel Aviv’s close-knit organic linkages between start-ups, industry, and academia, and UAE’s funding and focus on innovation.
    • To this mix, Bengaluru — and potentially Hyderabad — can add opportunities for scaling up and manufacturing.
    • The startup community in the US, Israel and the UAE have already reached an advanced research and development stage providing an opportunity for India to build expertise and offer the scale to the development and applications of these technologies.

    Way forward

    • Security cooperation: The collaborative and customisation possibilities offered by these technologies and their dual-use nature offers the potential to give a technological edge to the four countries’ militaries.
    •  This, in turn, can add the security cooperation element to the grouping’s agenda.
    • Broaden the base: If the four countries plug their innovation ecosystems in this collaboration to shortlist, fund and develop technologies, it will also help to broaden the base of cooperation for this grouping, rather than restrict it to the government-to-government domain.
    • Government push will be the essential catalyst to unlock this space for cooperation through seed-funding, academic collaborations, industrial partnerships and MoUs.
    • China factor: By collaborating with Russia, and domestic flagship initiatives like “Made in China 2025”, Beijing has pursued emerging technologies and successfully reduced the capability gap with Washington.
    • These developments make it imperative for the US, Israel, UAE, and India to strengthen their newly established cooperation.

    Conclusion

    Each country with its unique advantage in the field of science and technology, innovation and start-ups can make a significant contribution to advance shared technological goals.

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  • Starting Today @ 7PM|| Free Webinar by Santosh Gupta Sir who Cleared Prelims 6/6 Times|| Don’t miss out these 7 steps if you want to Score Extra Marks in Prelims 2022|| Limited Slots Open, Register Now

    Starting Today @ 7PM|| Free Webinar by Santosh Gupta Sir who Cleared Prelims 6/6 Times|| Don’t miss out these 7 steps if you want to Score Extra Marks in Prelims 2022|| Limited Slots Open, Register Now

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    Let’s admit this — As much as we have heard our seniors, mentors and toppers advise us to answer fewer questions in Prelims exams due to negative marking, do we want to follow it? All of us wish to answer as many questions as possible correctly. However, post 2014 questions have started getting tougher so much that now –

    “Prelims is no longer about selecting the right option. It’s searching for the correct option by eliminating the incorrect ones.”

    Let’s take a sample question from Prelims 2021 Paper —

    Constitutional government means

    1. a representative government of a nation with federal structure
    2. a government whose Head enjoys nominal powers
    3. a government whose Head enjoys real powers
    4. a government limited by the terms of the Constitution

    An average aspirant gets confused between 2-3 options. Option a), b) and d) look equally correct but you have to select only one. The right answer is option d). How can you find out what was the missing criteria in option a) and b) which option d) fulfilled to emerge as the right answer?

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    Key Takeaways of Santosh Gupta Sir’s Free Prelims Orientation Webinar

    1. Complete Analysis of the 2021 Prelims Paper. How to change your preparation methods right now?

    2. The 7 Steps of Tackling Prelims 2022. How to maximize revision and minimize study materials?

    3. Significance of Current Affairs. Is it really declining in Prelims?

    4. Important Topics to Cover for Prelims 2022 for every subject. What are the correct study materials for these topics?

    5. Time-Tested Elimination Techniques. How to use these techniques in sample questions?

    Webinar Details

    Prelims question papers have become more or less like a game of Sudoko. Except, in Sudoko you can solve the puzzle at your leisure and over here you are limited by 2 hours. We hope this webinar will help all 2022 aspirants implement the suggestions of Santosh Gupta Sir.

    Date: 18 November 2021 (Thursday)

    Time: 7 P.M

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    About Santosh Gupta Sir

    Santosh sir has scored above 140 twice in UPSC prelims and 120 plus in all 6 attempts. He has written all 6 mains and has appeared for Interviews 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. As the Prelims coordinator at Civilsdaily, he has helped 15 out of 25 students clear the prelims examination this year.

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