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  • Rooftop rainwater harvesting for India’s water stress

    India’s rapid urban growth is expected to stress its already crumbling base of public service arrangements — especially its management of water and sanitation services, whose safe and reliable availability proved to be the first line of defence against this covid pandemic.

    Q.Discuss how Rooftop rainwater harvesting can ease India’s water woes? (150W)

    Rooftop Rain Water Harvesting

    • It is the technique through which rainwater is captured from the roof catchments and stored in reservoirs.
    • Harvested rainwater can be stored in sub-surface groundwater reservoirs by adopting artificial recharge techniques to meet the household needs through storage in tanks.
    • Capturing and storing rainwater for use is particularly important in dryland, hilly, urban and coastal areas.
    • It holds the potential to support the country’s preparedness against the incipient challenges of changing climate.

    Water stress in India

    • An appalling confusion grips our policy makers and planners.
    • While the supply-demand gap is expected to widen by 50 per cent by 2030, many are still left without access to safe and sustainable water and sanitation services.
    • At least five Indian cities are already reported to have joined the list of world’s 20 largest water-stressed cities.

    If we look at the present portfolio of water resources management for other cities, it will not be wrong to claim that many more will soon become qualified for joining this infamous list.

    Exploring the complex problems

    • Water availability in India remains at the mercy of erratic patterns of precipitation.
    • Concretization of urban landscapes, symbolic of modern town planning imaginaries as to what an exercise in urban development has led to floods worsening.
    • Illegal encroachment along stormwater drains and urban rivers also aggravates the situation, not least by opening up spaces of active political contestation and negotiations.

    A paradigm shift needed

    • In India, management of water was bundled as part of the prerogative claims of post-independent public institutions with public participation programs designed later on to serve only a placatory function.
    • This has led to the systematic exclusion of the public’s opinions in informing the design and implementation protocols of large public schemes.
    • It took the form of multi-purpose dams, irrigation canals, public water distribution systems, etc.
    • Despite this, India has now become a ‘water-stressed country.

    A newer approach

    • Rising national empathy for river rejuvenation, watershed conservation and active public participation has, on the other hand, already started scripting a new paradigm for India’s water management.
    • It prompts decision-makers to look for solutions in the collective efforts of the citizens in managing their issues locally.

    Right from the vedic times

    • Our Vedic ancestors, in their appreciation of the timeless bounty of water, always offered timely obeisance to water’s eternal gifts to mankind.
    • Their reverence to water can be found in the hymns and prayers offered to Varuna and Indra — Vedic Gods associated with water to riveting architectural gems and literary delights, each underscoring the centrality of water in our cultural revelries.
    • It is time our policies are re-designed to reflect these values.

    Empowering people

    • Rooftop rainwater structures are perfectly poised to engender a transformative wave of public engagement in water management.
    • Thus it can act as a corollary for making water management an exercise in nurturing democratic routines.
    • To ensure that the public enthusiastically purchases this concept, a country-wide behaviour change campaign can be launched along the lines of the Swachh Bharat Mission.
    • This can emphasize people’s ‘ability and ‘motivation’ to romantically welcome these structures in their private premises.
    • This should rather be a ‘do-it-yourself’ model of engagement.

  • Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition

    At the recently concluded Leaders’ Summit on Climate in April 2021, the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition was announced.

    LEAF Coalition

    • LEAF Coalition is a collective of the US, UK and Norway governments.
    • It is a public-private effort, thus supported by transnational corporations (TNCs) like Unilever plc, Amazon, Nestle, Airbnb etc.
    • It came up with a $1 billion fund plan that shall be offered to countries committed to arresting the decline of their tropical forests by 2030.
    • The LEAF coalition initiative is a step towards concretizing the aims and objectives of the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism.

    How does this coalition work?

    • The LEAF Coalition can help reverse the trend by providing unprecedented financial support to tropical forest governments implementing forest protection, contributing to green and resilient growth through sustainable investments.
    • It empowers tropical and subtropical forest countries to move more rapidly towards ending deforestation while supporting them in achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement.
    • Reductions in emissions are made across entire countries or large states and provinces (“jurisdictions”) through programs that involve all key stakeholders, including Indigenous peoples and local communities.

    Why is it significant?

    • Financial impetus is crucial as it incentivizes developing countries to capture extensive deforestation and provide livelihood opportunities to forest-dependent populations.
    • The initiative comes at a crucial time when the tropics have lost close to 12.2 million hectares (mha) of tree cover year last year according to global estimates released by Global Forest Watch.
    • Most of these lost forests were located in the developing countries of Latin America, Africa and South Asia.
    • India’s estimated loss in 2020 stands at 20.8-kilo hectares due to forest fires

    What lies next?

    • Implementation of the LEAF Coalition will help pump in fresh rigour among developing countries like India, that are reluctant to recognize the contributions of their forest-dwelling populations in mitigating climate change.
    • With the deadline for proposal submission fast approaching, India needs to act swiftly on a revised strategy.
    • Although India has pledged to carry out its REDD+ commitments, it is impossible to do so without seeking knowledge from its forest-dwelling population.

    Answer this PYQ in the comment box:

    With reference to ‘Forest Carbon Partnership Facility’, which of the following statements is/ are correct?  (CSP 2013)

    1. It is a global partnership of governments, businesses, civil society and indigenous peoples.
    2. It provides financial aid to universities, individual scientists and institutions involved in scientific forestry research to develop eco-friendly and climate adaptation technologies for sustainable forest management.
    3. It assists the countries in their ‘REDD+ (Reducing Emissions from Deforestation and Forest Degradation+)’ efforts by providing them with financial and technical assistance.

    Select the correct answer using the code given below:

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

    Back2Basics: REDD+

    • REDD+ is a mechanism developed by Parties to the United Nations Framework Convention on Climate Change (UNFCCC).
    • It creates a financial value for the carbon stored in forests by offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development.
    • Developing countries would receive results-based payments for results-based actions.
    • REDD+ goes beyond simply deforestation and forest degradation and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks.
    • It aims to create incentives for communities so that they stop forest degrading practices.

  • OECD-G20 Inclusive Framework Tax Deal

    India has joining the OECD-G20 framework for a global minimum tax.

    Must read

    What is Global Minimum Corporate Tax?

    What is this tax deal?

    • The proposed solution consists of two components:
    1. Pillar One is about the reallocation of an additional share of profit to the market jurisdictions and
    2. Pillar Two consists of minimum tax and subject to tax rules
    • Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed.
    • Further, the technical details of the proposal will be worked out in the coming months and a consensus agreement is expected by October.

    Why did India join?

    • The principles underlying the solution vindicates India’s stand for a greater share of profits for the markets, consideration of demand-side factors in profit allocation.
    • There is a need to seriously address the issue of cross border profit shifting and need for the subject to tax rules to stop treaty shopping.
    • India is in favour of a consensus solution that is simple to implement and simple to comply with.
    • At the same time, the solution should result in the allocation of meaningful and sustainable revenue to market jurisdictions, particularly for developing and emerging economies.

    What is Base Erosion and Profit Shifting (BEPS)?

    • BEPS refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions.
    • It thus “erodes” the “tax base” of the higher-tax jurisdictions.
    • Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven.
    • It is alleged that BEPS is associated mostly with American technology and life science multinationals.

  • Register for Live Webinar || How to Score 130+ with 90 days Complete plan || UPSC 2021 Prelims Preparation under the Mentorship of an in-Service Officer

    Register for a Live Webinar with Me – Date: 04 July 2021, Time: 3 PM

    Click here to register for the webinar

    In the great war of Mahabharata between Kaurava and Pandava, both wanted Krishna on their side. He gave both of them the choice of either his entire army, or himself as charioteer on a condition that he would neither fight nor hold any weapon. Duryodhana happily chose his army while Arjuna his guidance by choosing him as his charioteer.  

    There was a reason why Arjun chose Krishna, he was the person who provided the intelligence, the guidance, and knew the strength and weaknesses of Arjuna. We know the result of the Kurushetra war, which was won by Arjuna under his guidance. He guided Arjuna to avoid mistakes and strive for his best towards victory.

    Similarly, for UPSC aspirants those who have right guidance to clear Prelims, while others often commit mistakes that cost them success even at the first level i.e. the UPSC prelims. Around 95% fail at this level only. 

    There are Three mistakes of UPSC preparation- the mistakes which cost attempts and dreams:

    #Mistake No-1: Relying on short cuts and long cuts:

    #Mistake No- 2: Not developing conceptual understanding and interlinking: 

    #Mistake-No 3. Poor Assessment of own preparation i.e. Practice tests

    It is said that Insanity is doing the same thing again and again and expecting different results. Let’s do that differently this time.

    Understanding those mistakes and rectifying it helped me to score 145.34 and 142 in UPSC prelims GS paper when the cutoffs were 102 and 98 respectively and always above 120 plus in all attempts. 

    Fortunately, there is still around 100 days before you sit in Prelims- 2021. All you need is a mentor and a guide who understands your preparation as Krishna and helps you hit only the TARGET nothing else. Someone who himself has scored 120 plus always Prelims and understands part and parcel of the exam process.

    If you are willing to give your 110%, I will be available to ensure in the next 90 days  that you will come out of the examination hall with confidence and not with borderline cases, who waste next month in anticipation of prelims results, which could utilised for mains.

    So if you are determined and willing to work hard, then only you are welcome to webinar on this Sunday (04.07.2021) at 3PM. 

    Click here to register for the webinar

    In this webinar, you can expect to learn about:

    # 90 days concrete plan for Prelims-2021

    #Changed pattern of prelims- overall change and subject wise change

    #Subject specific focus : Polity, economy, ecology, history, geography, art and culture, S&T and IR: resources, methods, scope and utility in pre and mains

    #Current affairs: Learn keywords approach

    #How to revise effectively and not merely review?

    #Time Management skills and optimal utilisation of resources

    # Maximum benefit from Test series: Learn 3 fold approach to solve questions 

    #An interactive Q&A session with Santosh Gupta sir. 

    #Important Civilsdaily softcopies takeaway for exam preparation.

    -Not only ideas, but a concrete 90 days plan of execution.

    See you soon!

    A quick bit about Santosh Gupta:

    Santosh Gupta sir has scored above 140 twice in UPSC prelims and always 120 plus in all 6 attempts. He wrote all 6 mains and appeared for Interview 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. He is presently working as Assistant Commissioner in Commercial Tax Department in Government of Bihar. He has been teaching and mentoring UPSC aspirants for the last 5 years with tremendous interest in environment and ecology and Polity.

    Click here to register for the webinar

  • [Yojana Archive] E-waste Management

    June 2021

    E-waste management is a complicated process given the multitude of actors that are involved in the process. Even though the e-waste management policies are in place since 2011 in India, implementation has been sluggish. As of today, some 95% of e-waste is managed by the informal sector which operates under inferior working conditions and relies on crude techniques for dismantling and recycling.

    Problem of the millennium

    • The world dumped a record 53.6 million tons (Mt) of e-waste in 2019, recycling only 17.4% of it.
    • India has an e-waste management policy in place since 2011, with its scope expanded in 2016 and 2018. Yet, the pace of its implementation has not been satisfactory.
    • An attempt is made here to outline key policy measures to improve recycling capacity in India through market-based mechanisms for policy enforcement.

    What is E-waste?

    • Electronic waste (e-waste) i.e., waste arising from end-of-life electronic products, such as computers and mobile phones, is one of the fastest-growing waste streams in the world today.

    Why is it generated at such a large scale?

    • With the enhancement in the standard of living, modern societies have become resource-intensive in their consumption.
    • This has increased the demand for electronic items while considerably bringing down the life cycle of electronic products.
    • Coupled with planned obsolescence by the producers, inadequate repair options or awareness about deposit refund policies consumers tend to dispose of electronic goods along with other household waste, thus products entering the informal market.
    • Again the life span of devices is getting shorter with the rapid pace of technological advancements, improved specifications and better performance.
    • This has led to product replacements much before these run out of their usable periods.

    What is E-waste Management?

    • E-waste is generated when the first user of the product concludes on its useful life with no intention of reuse and disposes of it by donating or selling.
    • This e-waste can be managed either formally through collection or disposal in waste bins or informally through developed e-waste management infrastructure or even without it.

    E-waste value chain

    • E-waste management is a complicated process given the multitude of actors that are involved in the process.
    • The major stakeholders in the value chain include importers, producers/manufacturers, retailers (businesses/government/others), consumers (individual households, businesses, government and others), traders, scrap dealers, dissemblers/dismantlers and recyclers.
    • To critically assess each in the different stages of processing, it is important to understand the e-waste value chain.
    • The process involves four stages: generation, collection, segregation and treatment/disposal.

    [1] Generation (discussed earlier)

    [2] Collection

    • E-waste is collected by designated organizations, producers, Government retailer take-back, and producer take-back. This e-waste is then taken to a specialised treatment facility.
    • The disposer resorts to openly dumping the product in a waste bin along with other household wastes. E-waste ends up being incinerated or landfilled as other domestic waste.
    • Some countries may have an established network of individual waste dealers or companies who collect and trade the e-waste through various channels wherein possible metal recycling may occur at the destination.

    [3] Segregation and Disposal

    • The e-waste collected may be sold to an informal dealer who may repair, refurbish, or sell again to a backyard recycler.
    • This recycler dismantles the product through burning, leaching, and melting, thus converting it into secondary raw materials.

    India’s regulatory ecosystem

    • Indian electronics sector boomed in the last decade.
    • Increased production and penetration of imported electronics items led to an accelerated e-waste generation that necessitated regulatory control over the sector.
    • India has Electronic Waste (Management and Handling) Rules 2011 in place since . Its scope was expanded in 2016 and 2018 through amendments.

    Provisions of the 2011 Rules

    • To streamline e-waste management, the Government introduced Extended Producer Responsibility (EPR) whereby producers were required to collect and recycle electronic items.
    • Since manufacturers were incurring the disposal cost, their designs would incorporate less toxic and easily recyclable materials, thereby reducing input material requirement.

    Inherent flaws

    • The pace of its implementation has not been satisfactory.
    • Less than five percent of the waste is treated through formal recycling facilities.
    • The rest is handled by the informal sector with very little enforcement of environmental and occupational safety norms.

    Why?

    • A deeper analysis revealed that the EPR regulations in India were not quantified through collection or recycling targets as in other countries with better implementation framework and mechanisms.
    • In the absence of targets, producers had little incentive to ensure the collection of their used products.

    Subsequent amendments

    [I] Deposit-refund system (DRS): This resulted in the e-waste rules being amended in 2016 to include collection targets and implementing a deposit-refund system (DRS) by the producers. In a DRS, an upfront deposit is charged to the consumer at the time of purchase of the product, and the deposit is refunded when the product is safely returned to the producer.

    [II] Producer Responsibility Organizations (PROs): The 2018 amendment made provision for the registration of PROs. PROs in India offer comprehensive compliance services, from negotiating the most cost-effective regional collection and recycling contracts with different recyclers to helping producers meet outreach and awareness-raising requirement.

    Current scenario and issues in e-waste recycling

    • Crude and Scrappage: As of today, some 95% of e-waste is managed by the informal sector which operates under inferior working conditions and relies on crude techniques for dismantling and recycling.
    • Infrastructure lacunae: Another important issue is the lack of sufficient metal processing infrastructure which is why recyclers have to export materials to global smelters.
    • Price competencies: As aggregators are mostly informal, they demand up-front cash payments.
    • Bloomed informal network: The informal network is well-established and rests on social capital ties that PROs have yet to establish and are hence insulated from reaching the viable number of aggregators.
    • Policy failure: Policy changes have tried repeatedly to formalize the sector, but issues of implementation persist on the ground.

    Stakeholder analysis

    • The demand and supply side gap analysis against the backdrop of the regulatory landscape reveals two major stakeholders in the process – (1) Business Advocates and (2) Public and Media Gatekeepers.
    • The Government remains a great catalyst in the entire process. Its role can be discounted to that of a facilitator and a regulator in a self-propelled market.
    • It is important that consumers responsibly consume the product for its useful life and then weigh between the chances of repair or disposal with utmost consciousness towards the environment.
    • On the supply side, e-waste can be reduced when producers design electronic products that are safer, and more durable, repairable and recyclable. Manufacturers must reuse the recyclable materials and not mine rare elements unnecessarily to meet new production.

    Recommendations (by author)

    • The electronics sector will have to adapt operations to reduce virgin material usage and build technologies around greater extraction and recycling capabilities.
    • Process designs should be revolutionized to find alternatives to existing practices to not unsustainably extract rare earth resources.
    • Optimising the e-waste recycling chain requires strict monitoring, enforcement and tracking, the realization of economies of scale and global cooperation.
    • Failing to address any of these elements will result in suboptimal resource efficiency while posing a risk to the environment.
    • Enforcement of EPR targets and comprehensive monitoring of formal recycling flows and processes is a critical first step to avoid leakage of valuable materials to an uncontrolled informal sector.
    • In India, public awareness of e-waste hazards and recycling is low. People should be made aware of the trade-offs between sustainability and consumerism through both industry campaigns and media networks.

    India can grab the opportunity

    • Since India is highly deficient in precious mineral resources, there is a need for a well-designed, robust and regulated e-waste recovery regime that would generate jobs and wealth.
    • If these materials are domestically isolated, it can lead to greater metals security and resource efficiency in the country.

    Way forward

    • The consumers must responsibly consume the product for its useful life and then weigh between the chances of repair or disposal with utmost consciousness towards the environment.
    • On the supply side, e-waste can be reduced when producers design electronic products that are safer, and more durable, repairable and recyclable.
    • Manufacturers must reuse the recyclable materials and not mine rare elements unnecessarily to meet new production.
    • Rather than hoping that informal recyclers become formal it would be more feasible for companies and the state to design programs ensure e-waste easily makes its way to proper recyclers.

    Conclusion

    • The size and complexity of the e-waste problem are growing at a much quicker rate than the efficacy of strategies to contain it.
    • The policy advocates for greater awareness campaigns on the part of producers.
    • Concerted efforts are important to generate a momentum of sustained efforts towards increasing disposal through formal channels and catalyzing sustainable consumption patterns.

  • Register for Live Webinar || How to Score 130+ with 90 days Complete plan || UPSC 2021 Prelims Preparation under the Mentorship of an in-Service Officer

    |

    Register for a Live Webinar with Me – Date: 04 July 2021, Time: 3 PM

    Click here to register for the webinar

    In the great war of Mahabharata between Kaurava and Pandava, both wanted Krishna on their side. He gave both of them the choice of either his entire army, or himself as charioteer on a condition that he would neither fight nor hold any weapon. Duryodhana happily chose his army while Arjuna his guidance by choosing him as his charioteer.  

    There was a reason why Arjun chose Krishna, he was the person who provided the intelligence,the guidance, and knew the strength and weakness of Arjuna. We know the result of the Kurushetra war, which was won by Ajruna under his guidance. He guided Arjuna to avoid mistakes and strive for his best towards the victory.

     

    Similarly, for UPSC aspirants those who have right guidance to clear Prelims, while others often commit mistakes that cost them success even at the first level i.e. the UPSC prelims. Around 95% fail at this level only. 

    There are Three mistakes of UPSC preparation- the mistakes which cost attempts and dreams:

    #Mistake No-1: Relying on short cuts and long cuts:

    #Mistake No- 2: Not developing conceptual understanding and interlinking: 

    #Mistake-No 3. Poor Assessment of own preparation i.e. Practice tests

    It is said that Insanity is doing the same thing again and again and expecting different results. Let’s do that differently this time.

    Understanding those mistakes and rectifying it helped me to score 145.34 and 142 in UPSC prelims GS paper when the cutoffs were 102 and 98 respectively and always above 120 plus in all attempts. 

    Fortunately, there is still around 100 days before you sit in Prelims- 2021. All you need is a mentor and a guide who understands your preparation as Krishna and helps you hit only the TARGET nothing else. Someone who himself has scored 120 plus always Prelims and understands part and parcel of the exam process.

    If you are willing to give your 110%, I will be available to ensure in the next 90 days  that you will come out of the examination hall with confidence and not with borderline cases, who waste next month in anticipation of prelims results, which could utilised for mains.

    So if you are determined and willing to work hard, then only you are welcome to webinar on this Sunday (04.07.2021) at 3PM. 

    Click here to register for the webinar

    In this webinar, you can expect to learn about:

    # 90 days concrete plan for Prelims-2021

    #Changed pattern of prelims- overall change and subject wise change

    #Subject specific focus : Polity, economy, ecology, history, geography, art and culture, S&T and IR: resources, methods, scope and utility in pre and mains

    #Current affairs: Learn keywords approach

    #How to revise effectively and not merely review?

    #Time Management skills and optimal utilisation of resources

    # Maximum benefit from Test series: Learn 3 fold approach to solve questions 

    #An interactive Q&A session with Santosh Gupta sir. 

    #Important Civilsdaily softcopies takeaway for exam preparation.

    -Not only ideas, but a concrete 90 days plan of execution.

    See you soon!

    A quick bit about Santosh Gupta:

    Santosh Gupta sir has scored above 140 twice in UPSC prelims and always 120 plus in all 6 attempts. He wrote all 6 mains and appeared for Interview 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. He is presently working as Assistant Commissioner in Commercial Tax Department in Government of Bihar. He has been teaching and mentoring UPSC aspirants for the last 5 years with tremendous interest in environment and ecology and Polity.

    Click here to register for the webinar

  • Transform Your Ethics Answers To Score More | Join The FREE Parakram Session by Rohit sir Today! 9:00 pm

    Transform Your Ethics Answers To Score More | Join The FREE Parakram Session by Rohit sir Today! 9:00 pm

    Transform the way you write your Ethics answers and start writing in a way that helps you get more marks. Join the Parakram sessions with Rohit sir for absolutely FREE and start practicing today!

    Parakram session by Rohit sir – Habitat general discussion

    The session will take place in the General club. Click on the blue box in the club to enter the discussion.

    Benefits of joining the club:

    1. Learn the best answer writing practice through conversations.
    2. Get instant feedback and evaluation by our expert mentor.
    3. Frame better answers through peer-based discussions.
    4. Learn about the common mistakes students make and avoid them.
    5. Save your time with smart answer writing practices.
    6. Save money by joining the sessions for FREE

    The session starts at 9.00 p.m. today.

    Parakram session by Rohit sir – Habitat general discussion

    What do you have to do?

    1. Join the club by registering now.
    2. Read the discussion going on in the club.
    3. Participate, ask questions, clear your doubts instantly.
    4. Interact with your mentor and start writing.

    More than a thousand student have already enrolled and have benefited through the sessions. Join now and watch your answers writing evolve. 

    Write better, Score more!

    Parakram session by Rohit sir – Habitat general discussion

  • Investors should not be tempted to ignore macroeconomic factors

    Despite gloom in the economy, financial markets are scaling new highs. The situations calls for diligence on the part of individual investors. The deals with this issue.

    What influences investors’ decision

    • Investors may not necessarily be always sensible or even capable of perceiving the larger picture.
    • Nobel laureate Daniel Kahneman argues that humans usually use the ‘first system’ of ‘fast thinking’ to hurriedly act and perceive their environment.
    • Consequently, they are susceptible to the ‘priming effect’, ‘framing bias’, ‘anchoring effect’, ‘overconfidence bias’ and ‘availability heuristic’.
    • These phenomena, thus, play their part in pervading optimistic market conditions.
    • As a result, investors often end up ignoring or overlooking uncertainties and risks involved in their decision.
    • At the same time, investors’ decision choices could be significantly influenced by ‘nudging’.
    • It is a deliberate tactics and method of behaviour modification by which it is the ‘choice architect’ that decides who does what and who does so, as argued by the Nobel laureate, Richard H. Thaler.
    • The present surge in the Indian stock market is indeed nudging individual investors to trade more.

    What makes individual investors vulnerable

    • National Stock Exchange data indicate following trends:
    • The share of the non-institutional individual investors in equity trading volume has risen to one half of the total turnover. in 2021.
    • It was around a third in 2016.
    • In contrast, the share of Foreign Institutional Investors (FIIs) in the total trading volume has shrunk to just about a tenth, it used to be one fifth in 2016.
    • Trading in the stock market, the sudden rise, the intraday moves, etc., are, thus, attributable largely to individual traders now. 
    • However, despite their large trading volumes, individual investors have actually contracted their holding of the market capitalisation.
    • The FIIs currently own around half of the free float of all Indian companies.
    • Apparently, the retail investors have constantly sold their stake to end up holding less than 20% shares now.
    • Trading, thus, seems to be the mainstay of retail investors and this is what makes them more vulnerable to the vagaries of the market.

    Market is ignoring macroeconomic factors

    • Centre for Monitoring Indian Economy Pvt. Ltd. data of the listed companies reveal a rise in their profit, due to rationalisation and cost-cutting.
    • Investors might be tempted to ignore macroeconomic factors and invest in such stock believing that it is the profit that impels the stock prices.
    •  In reality, however, share price is expected to ascend if a company declares to cut its wage bill.
    • This probably explains why stock markets around the world have been on the rise amidst the novel coronavirus pandemic; demand may have declined but profits have been least impacted.
    • At the larger economic level, however, real wages have plunged.
    • Clearly, the market has not entirely decoupled itself from the economic indicators.
    • Established wisdom suggests that corporates cannot sustain contraction in the economy for long.
    • Sustained decline in demand caused by waning disposable household income would catch them soon.
    • Robert J. Shiller attributes this phenomenon of creating a possible bubble to irrational exuberance.
    • When bubbles burst, they cause a kind of financial earthquake, in turn destabilising public trust in the integrity of the financial system.
    • Critically, as the past portrays, individual investors, with all their vulnerabilities, suffer the most devastating consequences.
    • Retail investors are as well susceptible to overreaction when negative news hits the market.

    Consider the question “What are the factors driving the financial markets up despite the weak macroeconomic foundations? What are the risks involved in such situation for the individual investors?”

    Conlcusion

    History of financial markets is replete with bubbles and bursts. Most affected in such burst are the individual investors. Informed decisions based on information and risks involved should form the basis of investment by individual investors.

  • Rule of Law vs Rule by Law

    What makes the Rule of Law different from the Rule by Law? It is the idea of justice and equity that separates the two. The article explains the principles that emerge as the basis of the Rule of law and the role of the judiciary in ensuring their constitutionality.

    Understanding law

    • Law, in its most general sense, is a tool of social control that is backed by the sovereign.
    • However, such a definition of law can be used not only to render justice, it can also be used to justify oppression.
    • Therefore it is argued that a law cannot really be classified as a “law” unless it imbibes within itself the ideals of justice and equity.
    • So, any law backed by a sovereign must be tempered by certain ideals or tenets of justice.
    • Only a state that is governed by such law, can be said to have the Rule of Law.
    • The British colonial power used the law as a tool of political repression, enforcing it unequally on the parties, with a different set of rules for the British and for the Indians.
    •  It was an enterprise famous for “Rule by Law”, rather than “Rule of Law.

    Four principles of rule of law

    • Clarity and accessibility: Laws must be clear and accessible, the people at least ought to know what the laws are.
    • Another implication of this principle is that they should be worded in simple, unambiguous language.
    • Equality: An important aspect of equality before law is having equal access to justice.
    • This guarantee of equal justice will be rendered meaningless if the vulnerable sections are unable to enjoy their rights because of their poverty or illiteracy or any other kind of weakness.
    • Another aspect is the issue of “gender equality”.
    • Participation of people: The third principle, the “right to participate in the creation and refinement of laws”.
    • The very essence of a democracy is that its citizenry has a role to play, directly or indirectly, in the laws that govern them.
    • In India, it is done through elections.
    • The idea that people are the ultimate sovereign is also to be found in notions of human dignity and autonomy
    • Strong independent judiciary: The fourth principle stemsp from the idea that the judiciary is the “guardian” of the Constitution.
    • The judiciary is the primary organ which is tasked with ensuring that the laws that are enacted are in line with the Constitution.

    Independent judiciary and role of media

    • The judiciary cannot be controlled, directly or indirectly, by the legislature or the executive, or else the Rule of Law would become illusory.
    • At the same time, judges should not be swayed by the emotional pitch of public opinion either, which is getting amplified through social media platforms.
    • Judges have to be mindful of the fact that the noise thus amplified is not necessarily reflective of what is right and what the majority believes in.
    • Therefore, media trials cannot be a guiding factor in deciding cases.
    • It is, therefore, extremely vital to function independently and withstand all external aids and pressures.
    • While there is a lot of discussion about the pressure from the executive, it is also imperative to start a discourse as to how social media trends can affect the institutions.

    Conclusion

    The importance of the judiciary shouldn’t blind us to the fact that the responsibility of safeguarding constitutionalism lies not just with the courts. All the three organs of the state, i.e., the executive, legislature and the judiciary, are equal repositories of constitutional trust.

  • Register for Live Webinar || How to Score 130+ with 90 days Complete plan || UPSC 2021 Prelims Preparation under the Mentorship of an in-Service Officer||Zoom Link inside

    Zoom Link : https://zoom.us/j/94446878902?pwd=L3pSaUNCcDM0ZWJLSGRPVjlLVXE1QT09

    Register for a Live Webinar with Me – Date: 04 July 2021, Time: 3 PM

    Click here to register for the webinar

    In the great war of Mahabharata between Kaurava and Pandava, both wanted Krishna on their side. He gave both of them the choice of either his entire army, or himself as charioteer on a condition that he would neither fight nor hold any weapon. Duryodhana happily chose his army while Arjuna his guidance by choosing him as his charioteer.  

    There was a reason why Arjun chose Krishna, he was the person who provided the intelligence, the guidance, and knew the strength and weaknesses of Arjuna. We know the result of the Kurushetra war, which was won by Arjuna under his guidance. He guided Arjuna to avoid mistakes and strive for his best towards victory.

    Similarly, for UPSC aspirants those who have right guidance to clear Prelims, while others often commit mistakes that cost them success even at the first level i.e. the UPSC prelims. Around 95% fail at this level only. 

    There are Three mistakes of UPSC preparation- the mistakes which cost attempts and dreams:

    #Mistake No-1: Relying on short cuts and long cuts:

    #Mistake No- 2: Not developing conceptual understanding and interlinking: 

    #Mistake-No 3. Poor Assessment of own preparation i.e. Practice tests

    It is said that Insanity is doing the same thing again and again and expecting different results. Let’s do that differently this time.

    Understanding those mistakes and rectifying it helped me to score 145.34 and 142 in UPSC prelims GS paper when the cutoffs were 102 and 98 respectively and always above 120 plus in all attempts. 

    Fortunately, there is still around 100 days before you sit in Prelims- 2021. All you need is a mentor and a guide who understands your preparation as Krishna and helps you hit only the TARGET nothing else. Someone who himself has scored 120 plus always Prelims and understands part and parcel of the exam process.

    If you are willing to give your 110%, I will be available to ensure in the next 90 days  that you will come out of the examination hall with confidence and not with borderline cases, who waste next month in anticipation of prelims results, which could utilised for mains.

    So if you are determined and willing to work hard, then only you are welcome to webinar on this Sunday (04.07.2021) at 3PM. 

    Click here to register for the webinar

    In this webinar, you can expect to learn about:

    # 90 days concrete plan for Prelims-2021

    #Changed pattern of prelims- overall change and subject wise change

    #Subject specific focus : Polity, economy, ecology, history, geography, art and culture, S&T and IR: resources, methods, scope and utility in pre and mains

    #Current affairs: Learn keywords approach

    #How to revise effectively and not merely review?

    #Time Management skills and optimal utilisation of resources

    # Maximum benefit from Test series: Learn 3 fold approach to solve questions 

    #An interactive Q&A session with Santosh Gupta sir. 

    #Important Civilsdaily softcopies takeaway for exam preparation.

    -Not only ideas, but a concrete 90 days plan of execution.

    See you soon!

    A quick bit about Santosh Gupta:

    Santosh Gupta sir has scored above 140 twice in UPSC prelims and always 120 plus in all 6 attempts. He wrote all 6 mains and appeared for Interview 3 times. He has qualified UPSC EPFO and BPSC 56-59th also. He is presently working as Assistant Commissioner in Commercial Tax Department in Government of Bihar. He has been teaching and mentoring UPSC aspirants for the last 5 years with tremendous interest in environment and ecology and Polity.

    Click here to register for the webinar

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