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  • [Burning Issue] Internet of Things (IoT)

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    Introduction

    The Internet of Things (IoT) can become a game-changer that India needs as this concept is set to disrupt almost every sector in India from smart cities and telecom to manufacturing and mobility. The rapid development in the IoT leads to the starting of the next digital revolution. However, the Internet of Things throws up many challenges like data safety and privacy. So India needs to push ahead with this concept to kick-start the radical development process with the proper regulatory framework in place to govern IoT.

    What is the Internet of Things?

    • IoT is the network of devices, vehicles, and home appliances that contain electronics, software, actuators, and connectivity which allows these things to connect, interact and exchange data.
    • IoT involves extending Internet connectivity beyond standard devices, such as desktops, laptops, smartphones, and tablets to everyday objects.
    • These objects may be anything from cell phones, coffee makers, washing machines, headphones, lamps, wearable devices.
    • It can also be components of machines, for example, a jet engine of an airplane or the drill of an oil rig.
    • Embedded with technology, these devices can communicate and interact over the Internet, and they can be remotely monitored and controlled.
    • Thus, it is all about connecting devices over the internet and letting them ‘talk’ to us, applications, and each other.
    • However, the Internet of Things doesn’t necessarily have to be connected to the internet; it can also be a network of things.

    Advantages of IoT

    • Monitor Data: It helps us know the precise quantity of supplies or the air quality in home, it can also provide more data that could not have previously been possible to collect easily. For instance, monitoring the expiration of products will improve safety.
    • Ease of Access: Right now, one can easily gain the required information in real-time, from almost any location. It only takes a smart device and an internet connection. Example using Google Maps to see our location, instead of asking a person in real life.
    • Speedy Operation: All this data pouring in enables us to complete multiple tasks with amazing speed. For example, IoT makes automation effortless. Smart industries automate repetitive tasks, thus allowing employees to invest their time and effort into more challenging things.
    • Adapting to New Standards: As IoT is an ever-changing topic, its changes are minimal compared to the other techs of the high-tech world. Without IoT, it would be complicated for us to keep track of all the latest things.
    • Better Time Management: IoT is a clever time-saving tool. We can look up the latest news on our phones during our daily commute, or check a blog about our favourite pastime, purchase an item in an online shop, we can do almost all the things from the palm of our hands.
    • Automation and Control: Without human interference, the machines are communicating with each other providing faster and timely output.
    • Saving Money: Another main advantage of IoT is saving money. If the cost of the tagging and monitoring machines are less compared with the amount of money saved, this is the reason for the Internet of Things being very widely adopted.
    • Allowing the data to be communicated and shared between devices and then translating it into our required way, makes our systems efficient.

    Applications of Internet of Things

    (1) Daily Lives

    • There can be several IoT examples in our day-to-day lives.
    • For instance, a person returning home after his office hours can call his coffee-maker to make the coffee ready when he reaches home.
    • IoT can be used to water the plants of the garden whenever the moisture level falls below a certain limit.
    • We can utilize IoT to convert a normal home into a smart home. It can be used in energy efficiency in homes and office places.

    (2) Industry

    • IoT’s effects may vary from industry to industry based on its utilization.
    • In the manufacturing sector, IoT can be utilized to enhance performance, minimize human-induced errors and consequently improve the overall quality of the manufactured products.
    • In the IT sector, utilization of IoT can result in improvement in services, development of more advanced software and digital services, etc.

    (3) Agriculture

    • IoT can be utilized to collect data about rainfall, soil moisture, soil nutrients, pest infestation, etc.
    • It can assist in making informed decisions to increase agricultural production as well as reducing the risks of crop failures etc.
    • It can help make agriculture profitable with better price-discovery for farmers through smart techniques.

    (4) Healthcare

    • Medical practitioners and doctors can use IoT to remotely monitor the patient’s health.
    • Smart beds can detect when the patient is trying to get up, his abnormal activities, etc.
    • Specialized sensors for senior citizens can be developed with the help of IoT.
    • Wearable heart monitors can help monitor the heartbeats, blood pressure of patients, etc.
    • It can revolutionize telemedicine applications.

    (5) Media

    • Corporate media houses can utilize IoT to monitor consumer habits for the purpose of behavior targeting = display consumer-specific advertisements. They can utilize Big Data and Data Mining for this purpose.

    (6) Transportation

    • IoT can be used in driverless cars and improve intra-vehicular communication to reduce accidents and traffic jams etc.
    • We can use it for electronic toll collections, smart parking, smart traffic management, etc.
    • IoT can be useful in logistics, fleet management, safety assistance, etc.

    (7) Smart cities

    • IoT can be utilized in solid waste management systems to improve the cleanliness of the city.
    • Smart meters and power grids can improve energy efficiency and reduce transmission loss.
    • IoT can be used to track the air pollution levels in the cities and give a warning when it breaches the prescribed safety levels.
    • IoT can also be used to develop smart transportation systems to minimize congestion in the cities.

    (8) Smart Retail

    • IoT provides an opportunity to retailers to connect with the customers to enhance the in-store experience. Interacting through Smartphones and using Beacon technology can help retailers serve their consumers better.
    • They can also track consumers’ paths through a store and improve store layout and place premium products in high traffic areas.

    (9) Energy Engagement

    • Power grids of the future will not only be smart enough but also highly reliable.
    • The basic idea behind the smart grids is to collect data in an automated fashion and analyze the behavior or electricity consumers and suppliers for improving efficiency as well as the economics of electricity use.
    • Smart Grids will also be able to detect sources of power outages more quickly and at individual household levels like a nearby solar panels, making possible distributed energy systems.

    What is the case with India?

    • IoT is the natural evolution of the internet and has many benefits including boosting global economies, improving public utilities, and increasing efficiencies.
    • Many of our global counterparts have already begun reaping the rewards of investing in IoT-based infrastructure.
    • The Indian government outlined a plan to leverage IoT as part of the Digital India mission.
    • The Indian IoT market is expected to reach $15 billion by 2020 and constitute 5% of the global market.
    • Investing in IoT will boost our economy on par with global leaders and it will also bring in investments, create jobs and improve Indian public infrastructure

    What are the measures taken by the government to promote IoT?

    • The central government launched a plan to utilize IoT as part of the Digital India mission.
    • The government came up with the National Digital Communications Policy 2018 to satisfy the modern realities of the telecom such as 5G technology, IoT, Machine to Machine (M2M) communication, etc.
    • The government also allowed 100% FDI in the telecom sector. This will help in the development and growth of the IoT.
    • Department of Electronics and Information Technology (DeITY) has published a draft policy for IoT. The target is to establish an IoT market of USD 15 billion by 2020 and having a share of 5-6% in the global IoT industry.

    Challenges with the IoT

    • Data Breach: Having access to data is excellent. Unfortunately, our personal data is more exposed.
    • Dependence on Technology: IoT is mainly dependent on the internet connection. When there is none, it can’t be used.
    • Complexity in Operation: IoT may seem to be managing tasks with ease, a lot of complex operations are done behind it. If by mistake the software makes a wrong calculation, this will affect the rest of the process.
    • Our Safety: As all the household appliances, industrial machinery, public sector services and many other devices all are connected to the Internet, a lot of information is available on it. This information is prone to attack by hackers. It would be very disastrous if private and confidential information is accessed by unauthorized intruders.
    • Inter Compatibility: As devices from various manufacturers will be interconnected to each other, the issue of compatibility in tagging and monitoring increases. This disadvantage can be overcome if manufacturers make a common standard, but there is still a possibility that the technical problems may still persist.
    • Lesser Employment of Menial Staff: The uneducated workers and helpers may lose their jobs as an effect of automation of daily activities. This can lead to unemployment in the society.
    • Technology Takes Control of Life: Our lives are increasingly controlled by technology and will be dependent on it. The younger generation is already addicted to technology for every little work to be done.

    How is IoT impacting the digital transformation of education?

    • Tracking movement: Integrated systems of IoT, which automatically transmit information about the child boarding the bus, the bus reaching the school, and the child entering the school premises, can be available to both parents and teachers via an app and automated messages.
    • Attendance system: Teachers and faculty members need not waste time on roll call. Instead, the student’s identity card automatically communicates with the sensors in the classroom and marks attendance.
    • Automatic sharing: Taking notes and marking critical points is an integral part of a student’s class activity. But, with IoT, all the contents on the black/whiteboard is automatically converted into a portable document and shared over email.
    • Session capture: An IoT environment automatically captures a classroom session (audio and video) and puts it on a shareable drive. This can be accessed by those students who missed the class. This way learning becomes both inclusive and accessible.
    • Ensuring security: With COVID-19 still doing the rounds, an IoT-based system integrated with CCTVs can scan the campus and spot people who are not wearing masks. The coordinates can be sent as an SMS and an email to the administrative authority for further action.
    • Read and translate: IoT can also be used to quickly scan editable text from books, papers, and other documents directly into a phone, tablet or computer and translate into more than 40 languages.

    Way forward

    • IoT makes life easier at the cost of privacy and hence Data Protection Bill can do a lot well in ensuring the privacy of an individual.
    • Policy-makers, regulators, device manufacturers, supporting industries, and service providers will all have to join hands in creating a safer space online.
    • In India, the NDCP (National Digital Communications Policy) brought alignment from critical stakeholders to advance India’s infrastructure and security around digital communications.
    • The draft IoT policy seeks to establish committees to govern and drive IoT-specific initiatives. It is not yet clear how much access to personal data these committees get and how their actions will be monitored.
    • The Justice Srikrishna Committee had recommended some provisions for personal data protection including a consumer’s right to information, consent, and right to request companies to erase their data if preferred.

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  • MEETING LINK INSIDE, Register & Join||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor  Ranadheer Ravula

    MEETING LINK INSIDE, Register & Join||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor Ranadheer Ravula

    Team is inviting you to a scheduled Zoom meeting.

    UPSC-CSE 2022 New Year Resolution || Prelims 2022 Preparation & Choosing Optional for Mains? || by Ranadheer Ravula Mentor @Civilsdaily

    Date & Time: Dec 31, 2021 @06:00 PM (login starts 05:45 PM onwards) India

    Join Zoom Meeting

    https://zoom.us/j/91745832471?pwd=TTFuK08zSDBHK3lUUGF0MlRySHUvQT09


    Meeting ID: 917 4583 2471

    Passcode: 405482

    2021 surely sped by quickly for UPSC aspirants and now there’s only two more days left to welcome the new year. Every new year brings us new hopes, and every UPSC aspirant wishes that that they clear the exam that very year.

    If you are appearing for UPSC-CSE 2022 exams, you might have completed your entire prelims and mains syllabus right now. So what are you going to be doing January onwards? How are you going to switch to a prelims focused approach till June?

    Are you feeling low that you are unable to get the required cut-off marks in your test series. Worry not, for about 65% of the UPSC toppers have said that they scored below cut-off marks till December. But by June, they were able to boost their marks to get through the prelims hurdle. How did they do this?

    Free Open to All Webinar by Civilsdaily Mentor Ranadheer Ravula

    Our Civilsdaily mentor, Ranadheer sir will be providing a fool proof time-table on how to devote your time for the upcoming prelims exams from January onwards. This will include a month-by-month outlook as well.

    Preparing ahead will help you stay focused, determined and consistent in your UPSC preparation as opposed to deciding impulsively. It takes a lot of efforts to plan the right schedule for the upcoming prelims exams. Sometimes, you will be second guessing and wondering what others are upto. Ranadheer sir will use his expertise to break down your preparation into phases.

    Additionally he will speak about the 6 ways to find the right optional for you. The right optional is always subjective, however the process of finding out an optional that’s easy to understand (for you) and is a scoring subject (by UPSC standards) is objective.

    Want to know how is the January month timetable? Then fill the form & register below

    Key Takeaways of Free Live Webinar with Ranadheer Sir

    1. How to revise 2 years of Prelims Current Affairs in the last 6 months?

    2. How to go a day without studying yet take frequent breaks in a day?

    3. Is it advisable to increase the number of study hours as the exam nears?

    4. How to speed read all the books once again?

    5. How many test series should one take before exams?

    6. What are the 6 things to keep in mind before choosing an Optional that can change your fortunes?

    7. What are the additional sources and books that can help you score above cut-off marks?

    Webinar Details

    Don’t miss the chance to get value addition inputs to score better in the examination! This webinar is absolutely free. All aspirants are welcome to attend.

    Date – 31 December 2021 (Friday)

    Time – 6:00 P.M.

    Limited slots are available. Please register immediately.

  • Registrations Closing in 1 Hr, Webinar @ 6PM ||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor  Ranadheer Ravula  Copy

    Registrations Closing in 1 Hr, Webinar @ 6PM ||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor Ranadheer Ravula Copy

    2021 surely sped by quickly for UPSC aspirants and now there’s only two more days left to welcome the new year. Every new year brings us new hopes, and every UPSC aspirant wishes that that they clear the exam that very year.

    If you are appearing for UPSC-CSE 2022 exams, you might have completed your entire prelims and mains syllabus right now. So what are you going to be doing January onwards? How are you going to switch to a prelims focused approach till June?

    Are you feeling low that you are unable to get the required cut-off marks in your test series. Worry not, for about 65% of the UPSC toppers have said that they scored below cut-off marks till December. But by June, they were able to boost their marks to get through the prelims hurdle. How did they do this?

    Free Open to All Webinar by Civilsdaily Mentor Ranadheer Ravula

    Our Civilsdaily mentor, Ranadheer sir will be providing a fool proof time-table on how to devote your time for the upcoming prelims exams from January onwards. This will include a month-by-month outlook as well.

    Preparing ahead will help you stay focused, determined and consistent in your UPSC preparation as opposed to deciding impulsively. It takes a lot of efforts to plan the right schedule for the upcoming prelims exams. Sometimes, you will be second guessing and wondering what others are upto. Ranadheer sir will use his expertise to break down your preparation into phases.

    Additionally he will speak about the 6 ways to find the right optional for you. The right optional is always subjective, however the process of finding out an optional that’s easy to understand (for you) and is a scoring subject (by UPSC standards) is objective.

    Want to know how is the January month timetable? Then fill the form & register below

    Key Takeaways of Free Live Webinar with Ranadheer Sir

    1. How to revise 2 years of Prelims Current Affairs in the last 6 months?

    2. How to go a day without studying yet take frequent breaks in a day?

    3. Is it advisable to increase the number of study hours as the exam nears?

    4. How to speed read all the books once again?

    5. How many test series should one take before exams?

    6. What are the 6 things to keep in mind before choosing an Optional that can change your fortunes?

    7. What are the additional sources and books that can help you score above cut-off marks?

    Webinar Details

    Don’t miss the chance to get value addition inputs to score better in the examination! This webinar is absolutely free. All aspirants are welcome to attend.

    Date – 31 December 2021 (Friday)

    Time – 6:00 P.M.

    Limited slots are available. Please register immediately.

  • Taiwan: An important ally in the battle against authoritarianism

    Context

    President Joe Biden-led Summit for Democracy was held on December 9-10. The summit was driven by the idea that in the face of populism, authoritarianism it is critical to keep the “democratic” flock together.

    The salience of Summit for Democracy

    • As a goal in itself: The salience of this summit lies in a deeper understanding that democracy is not just a form of government, it is a goal in itself, a value that must be cherished, preserved and celebrated.
    • Democracy as a way of life: Unlike other political systems, democracy is also a way of life — a work in progress that needs sustained attention and careful nurturing to make it more resilient.

    Taiwan as a desired partner of like-minded democracies

    • Taiwan’s New Southbound Policy (NSP) was launched in 2016 to bring Asia closer to Taiwan and vice-versa.
    • The NSP is aimed to be a pivotal tool to engage like-minded democracies in the region.
    • Role in the post-pandemic world: The post-pandemic world would be more invested in some of these areas — for example, health diplomacy and collaboration in the medical sector, climate change mitigation, and developing sustainable and resilient supply chains.
    • Platform for semiconductor industry: Taiwan is already proving its efficacy as a viable platform for the semiconductor industry.
    • Resilient supply chain mechanism: The US and its friends in the region, particularly India, Japan and Australia, have been proactively exploring possibilities of creating resilient supply chain mechanisms.
    • With its technological knowhow, and shared interests and concerns, Taiwan fits perfectly in this agenda.
    • EU’s renewed interest in Indo-Pacific: Greater interactions between Taiwan and EU on the technology cooperation front, stimulated by the latter’s renewed interest in the Indo-Pacific region, makes Taiwan a desired partner of fellow democracies.
    •  As an industrialised democracy, Taiwan could play an important role, especially since countries are trying to reduce dependence on China and establish supply chain resilience.

    Conclusion

    It is important for liberal democracies to acknowledge that they are facing similar challenges and view Taiwan as an indispensable partner. Deft diplomacy is in order since transnational challenges demand joint efforts by liberal democracies.

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

  • Registrations Closing in 3 Hrs, Webinar @ 6PM ||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor  Ranadheer Ravula

    Registrations Closing in 3 Hrs, Webinar @ 6PM ||UPSC-CSE New Year Resolution|| Jan to Jun UPSC-CSE Prelims Calendar & How to Choose the Right Optional for Mains?|| Free Live Webinar with Civilsdaily Mentor Ranadheer Ravula

    2021 surely sped by quickly for UPSC aspirants and now there’s only two more days left to welcome the new year. Every new year brings us new hopes, and every UPSC aspirant wishes that that they clear the exam that very year.

    If you are appearing for UPSC-CSE 2022 exams, you might have completed your entire prelims and mains syllabus right now. So what are you going to be doing January onwards? How are you going to switch to a prelims focused approach till June?

    Are you feeling low that you are unable to get the required cut-off marks in your test series. Worry not, for about 65% of the UPSC toppers have said that they scored below cut-off marks till December. But by June, they were able to boost their marks to get through the prelims hurdle. How did they do this?

    Free Open to All Webinar by Civilsdaily Mentor Ranadheer Ravula

    Our Civilsdaily mentor, Ranadheer sir will be providing a fool proof time-table on how to devote your time for the upcoming prelims exams from January onwards. This will include a month-by-month outlook as well.

    Preparing ahead will help you stay focused, determined and consistent in your UPSC preparation as opposed to deciding impulsively. It takes a lot of efforts to plan the right schedule for the upcoming prelims exams. Sometimes, you will be second guessing and wondering what others are upto. Ranadheer sir will use his expertise to break down your preparation into phases.

    Additionally he will speak about the 6 ways to find the right optional for you. The right optional is always subjective, however the process of finding out an optional that’s easy to understand (for you) and is a scoring subject (by UPSC standards) is objective.

    Want to know how is the January month timetable? Then fill the form & register below

    Key Takeaways of Free Live Webinar with Ranadheer Sir

    1. How to revise 2 years of Prelims Current Affairs in the last 6 months?

    2. How to go a day without studying yet take frequent breaks in a day?

    3. Is it advisable to increase the number of study hours as the exam nears?

    4. How to speed read all the books once again?

    5. How many test series should one take before exams?

    6. What are the 6 things to keep in mind before choosing an Optional that can change your fortunes?

    7. What are the additional sources and books that can help you score above cut-off marks?

    Webinar Details

    Don’t miss the chance to get value addition inputs to score better in the examination! This webinar is absolutely free. All aspirants are welcome to attend.

    Date – 31 December 2021 (Friday)

    Time – 6:00 P.M.

    Limited slots are available. Please register immediately.

  • 31st December 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1    Geographical features

    GS-2    International relations

    GS-3    Energy

    GS-4    Case studies

    Question 1)

     

    Q.1 What are P and S waves generated by the earthquakes? How do the propagation characteristics of these waves help determine the structure of the earth?

     

    Question 2)

    Q.2 India has recognised the importance of middle powers in the Arab Gulf to a fast-evolving global order. In context of this, examine the role Arab Gulf countries are playing in Afghanistan and India’s approach towards the region.

    Question 3)

    Q.3 What are the issues with National Electricity Policy (NEP) and the Tariff Policy (TP) as policy documents?

    Question 4)  

    Q. 4 You are a director of a reputed educational institution. A student of your institute commits suicide. You have come to know that mental harassment by the faculty was the reason behind the suicide. Revealing the reason for suicide could have severe implications for the institution and the rest of the students. However, sweeping the true reason under the carpet could result in the repeat of such an incident. Identify the ethical issues involved in the case. What are the options available to you?

     

    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: 

  • India-Australia soon to have FTA

    India and Australia are expected to complete negotiations for an interim free trade agreement (FTA) soon, a move aimed at boosting economic ties between the two countries.

    Comprehensive Economic Cooperation Agreement (CECA)

    • The final agreement is officially dubbed as the CECA is expected to be completed by the end of 2022.
    • The pact covers areas such as goods, services, investment, rules of origin, customs facilitation, legal and institutional issues.
    • This new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement

    (discussed above)

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

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

  • States demand extension of GST compensation for another 5 years

    Many states have demanded that the GST compensation cess regime be extended for another five years and the share of the Union government in the centrally-sponsored schemes be raised as the COVID-19 pandemic has impacted their revenues.

     What is GST?

    • GST, being a consumption-based tax, would result in loss of revenue for manufacturing-heavy states.
    • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
    • It is charged at the time of supply and depends on the destination of consumption.
    • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).

    Compensation under GST regime: GST Compensation Cess

    • Due to the consumption-based nature of GST, manufacturing states like Gujarat, Haryana, Karnataka, Maharashtra and Tamil Nadu feared a revenue loss.
    • Thus, GST Compensation Cess or GST Cess was introduced by the government to compensate for the possible revenue losses suffered by such manufacturing states.
    • However, under existing rules, this compensation cess will be levied only for the first 5 years of the GST regime – from July 1st, 2017 to July 1st, 2022.
    • Compensation cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.

    Why is the compensation necessary?

    • States no longer possess taxation rights after most taxes, barring those on petroleum, alcohol, and stamp duty were subsumed under GST.
    • GST accounts for almost 42% of states’ own tax revenues, and tax revenues account for around 60% of states’ total revenues.
    • Finances of over a dozen states are under severe strain, resulting in delays in salary payments and sharp cuts in capital expenditure outlay amid the pandemic-induced lockdowns and the need to spend on healthcare.

    Distributing GST compensation

    • The compensation cess payable to states is calculated based on the methodology specified in the GST (Compensation to States) Act, 2017.
    • The compensation fund so collected is released to the states every 2 months.
    • Any unused money from the compensation fund at the end of the transition period shall be distributed between the states and the centre as per any applicable formula.

    Try this question from CSP 2018:

    Q. Consider the following items:

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

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

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

     

    [wpdiscuz-feedback id=”7c72z5efcv” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

    Also read:

    [Burning Issue] GST Compensation

     

     

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  • Centre notifies new rules for Consumer Panels

    The Ministry of Consumer Affairs, Food, and Public Distribution has notified monetary jurisdiction for various Consumer Disputes Redressal Commission (CDRC) under the Consumer Protection Act, 2019.

    What are the new changes?

    • The Centre has notified new rules to revise pecuniary jurisdiction for entertaining consumer complaints at district, state and national level commissions, a move aimed at fast disposal of cases.
    • The NCDRC will now have jurisdiction to entertain consumers’ complaints where the value of the goods or services exceeds Rs 2 crore as against the earlier limit of over Rs 10 crore.
    • The state commissions will have jurisdiction to similar complaints with value of goods or services between Rs 50 lakh and Rs 2 crore, and the National Commission over Rs 2 crore.
    • District commissions have jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed Rs 1 crore.

    Legal basis of these changes

    • The Act provides a “three-tier quasi-judicial mechanism” for redress of consumer disputes: district commissions, state commissions, and the national commission.
    • The law also provides pecuniary jurisdiction of each tier of consumer commission.

    Benefits of the move

    • Fast-track disposal of cases: Reduction of limit of pecuniary jurisdiction of district and state commissions will reduce workload at these two tiers of dispute resolution system, and thereby reduce pendency at these two levels.
    • Easy litigation: Besides, with E-Dakhil in place, consumers can take their complaints to a state or national commission without visiting the commission physically.

    Back2Basics: Features of the Consumer Protection Act, 2019

    [1] Definition of consumer

    • A consumer is defined as a person who buys any good or avails a service for a consideration.
    • It does not include a person who obtains a good for resale or a good or service for commercial purpose.
    • It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

    [2] Rights of consumers

    Six consumer rights have been defined in the Bill, including the right to:

    • be protected against marketing of goods and services which are hazardous to life and property
    • be informed of the quality, quantity, potency, purity, standard and price of goods or services
    • be assured of access to a variety of goods or services at competitive prices and
    • seek redressal against unfair or restrictive trade practices

    [3] Central Consumer Protection Authority

    • The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.
    • It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
    • The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.

    [4] Penalties for misleading advertisement

    • The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.
    • In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
    • CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.

     [5] Consumer Disputes Redressal Commission

    • CDRCs will be set up at the district, state, and national levels.
    • A consumer can file a complaint with CDRCs in relation to: (i) unfair or restrictive trade practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and (iv) the offering of goods or services for sale which may be hazardous to life and safety.
    • Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC.
    • Appeals from the State CDRC will be heard by the National CDRC.
    • Final appeal will lie before the Supreme Court.

    [6] Jurisdiction of CDRCs

    • The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore.
    • The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.
    • Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.

    [7] Product liability

    • Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.
    • To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill.

     

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