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Mains is the most important stage of the UPSC exam. It’s also becoming more and more unpredictable, analytical and dynamic than ever before.
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What is Mains FLTs 2020?
Mains FLTs 2020 is a personalised and Mentor guided comprehensive and intensive program for GS Mains papers. The focus is on making students understand the requirement of Mains Question, its elements, using information, and imparting answer writing skills for that.
Our previous year Mains tests have had an exceptional hit ratio in 2019 and 2018 UPSC Mains.
It happens under a team of experienced Civilsdaily’s faculty. Questions framed are from the most important UPSC relevant themes and papers are based on the latest pattern of UPSC.
Our questions specifically state:
Whether they are straightforward or thought-provoking/analytical.
Whether they have subparts.
Why this question – similar previous year questions, the importance of the theme, etc.
CD Innovation – Star marked questions We go the extra mile and craft unique, intellectually-stimulating questions. Marked with a star, these questions reward analytical ability and critical thinking.
2. One-to-One Discussion on every checked copy
We believe in personalised individual attention. This is the biggest reason why you should join our TS. Students can schedule a call within 2 days of receiving their checked copies.
A one-to-one discussion with Mentor will not only highlight your weaknesses but will also help in tracking your improvements over the subsequent tests.
Our evaluation focusses on multiple dimensions and parameters like structure, flow, presentation, contextuality, relevance to question, analytical excellence and cross-domain inter-linkages than simply on superficial, memory-based lapses.
More than just simply providing information, our model answers cover all the aspects of a question and provide enriching points to the student. They also include:
For ‘thought-provoking/analytical‘ type of questions, we’ll provide the best way to approach them.
Alternate introductions
Sub-headings and categorization to enhance readability and answer structure.
Colour coding for main arguments, reports, data, scholars, etc.
OTB – Out of the box points for additional marks
5. Video Discussion
Every test is discussed thoroughly in the video lecture. An in-depth explanation of every question, demand from it and the ways in which it could have been answered are discussed. Mentors will also be sharing answer writing strategy with students so that they can gain extra marks in Mains.
You’ll be assigned to a special group on Civilsdaily’s Habitat, it’s headed by Sajal Sir, Atul Sir, Ravi Sir and rankers like Dr Vipin Garg (AIR 20), Swapnil Pawar (AIR 525) and others.
Habitat is where everything comes together learning, doubt clearing, notes, references, mentor’s support, and a focussed community. You’re going to learn and discuss like never before.
How will your queries be resolved?
The moment you have a query, you post it in the group. At 11 PM, 3 AM, doesn’t matter. No need to schedule a call, or drop an email. Just drop a chat. Once our team is up, it will be resolved.
More often than not, your peers will take part in your doubt discussions adding a lot of value.
Besides doubts, what else is there on Habitat?
#DDS sessions – We have dedicated sessions every day to resolve doubts in real-time. Never keep a doubt to yourself.
An ecosystem for co-learning and active learning.
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The article analyses the basics of India’s foreign policy and its implications for the Quad.
Context
There is confusion on what the Quad is and its future in India’s international relations.
Sustaining that confusion is the proposition that India is abandoning non-alignment in favour of a military alliance with the US in order to counter the China threat.
4 Question on Quad’s future and India’s role
1) What is the nature of alliance?
Alliances involve written commitments to come to the defence of the other against a third party.
Working of alliance varies according to the distribution of power within the members of an alliance and the changing nature of the external threat.
Alliances come in multiple shapes and forms — they could be bilateral or multilateral, formal or informal and for the long-term or near term.
Alliances feature in India’s ancient strategic wisdom and contemporary domestic politics in India.
Yet, when it comes to India’s foreign policy, alliances are seen as a taboo.
Part of the problem is that India’s image of alliances is frozen in the moment when India became independent.
After the Second World War, a newly independent India did not want to be tied down by alliances of the Cold War.
That notion is seen as central to Indian worldview.
2) Does India forge alliances?
Contrary to conventional wisdom, India has experimented with alliances of different kinds.
During the First World War, some nationalists aligned with Imperial Germany to set up the first Indian government-in-exile in Kabul.
In the Second World War, Subhas Chandra Bose joined forces with Imperial Japan to set up a provisional government.
Policy of non-alignment among the great powers also did not rule out alliances in a different context.
For example, when Bhutan, Nepal and Sikkim turned to Delhi for protection amidst Maoist China’s advance into Tibet during 1949-50, Nehru signed security treaties with them.
India turned to the US for military support to cope with the Chinese aggression in 1962.
Indira Gandhi signed a security cooperation agreement with the Soviet Union in 1971 to cope with the crisis in East Pakistan.
Then, as now, there was much anxiety in Delhi about India abandoning non-alignment.
India does do alliances but the question is when, under what conditions and on what terms.
3) Is the US offering India an alliance against China?
The current political discourse in Washington is hostile to alliance-making.
President Donald Trump does not miss an opportunity to trash US alliances.
In any case, formal commitments do not always translate into reality during times of war.
Even within the long-standing US military alliances with Japan and the Philippines, there is much legal quibbling over what exactly is the US’s obligation against, say, Chinese aggression.
In case of the Quad, it is quite clear that Washington is not offering a military alliance, nor is Delhi asking for one.
Because it knows India has to fight its own wars.
Both countries, however, are interested in building issue-based coalitions in pursuit of shared interests.
4) Instrumental nature of alliance
Agreements for security cooperation are made in a specific context and against a particular threat.
When those circumstances change, security treaties are not worth the paper they are written.
Consider India’s security treaties with Nepal, Bangladesh and Russia.
The 1950 Treaty was designed to protect Nepal against the Chinese threat.
Now, Nepali communists have long argued that the Treaty is a symbol of Indian hegemony.
India’s 1972 security treaty with Bangladesh did not survive the 1975 assassination of the nation’s founder, Mujibur Rahman.
India’s own enthusiasm for the 1971 treaty with Moscow waned within a decade.
Today Beijing is Moscow’s strongest international partner, a reality that has a bearing on India’s strategic partnership with Russia.
What India can learn from China about alliances
Mao aligned with the Soviet Union after in 1949 and fought the Korean War against the US during 1950-53.
He broke from Russia in the early 1960s and moved closer to the US in the 1970s.
Mao, who denounced US alliances in Asia, was happy to justify them if they were directed at Russia.
He also welcomed Washington’s alliance with Tokyo as a useful means to prevent the return of Japanese nationalism and militarism.
Having benefited from the partnership with the US, China is trying to push America out of Asia and establish its own regional primacy.
Delhi could learn from Beijing in not letting the theological debates about alliances cloud its judgements about the extraordinary economic and security challenges India confronts today.
Conclusion
The infructuous obsession with non-alignment diverts Delhi’s policy attention away from the urgent task of rapidly expanding India’s national capabilities in partnership with like-minded partners.
So finally, IAS prelims is done now. It was a long wait for prelims but just three months are left for Mains now. A couple of days’ rest was justified, any more than that is a sin. Time to get back to the grind.
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We cannot stress more upon the importance of the answer writing for IAS Mains. Answer writing in UPSC mains is an art. Unfortunately, less than 1% aspirants excel at this art.
In this Video, Sajal sir will discuss the Strategy which an aspirant should adopt while writing answers in UPSC GS mains paper. He will discuss 18 best practices that should be used while writing the mains answers. It is by incorporation of these 18 best practices your answer will be transformed from average to a perfect answer.
Mains FLTs 2020 will start from 18th October 2020.
Mains FLTs 2020 is a personalised and Mentor guided comprehensive and intensive program for GS Mains papers. The focus is on making students understand the requirement of Mains Question, its elements, using information, and imparting answer writing skills for that.
Farm Acts passed by the Parliament could face the legal hurdle in the court when challenged on its constitutional basis. This article explains the issue.
Background
Recently, Parliament passed three acts related to agriculture. These Acts are-
1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.
2) The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.
3) The Essential Commodities (Amendment) Act, 2020.
This has led to the question: Does the Union government have the authority to legislate on what are rightfully the affairs of States?
Why agriculture is considered as States’ prerogative
Agriculture is a State subject in the Constitution, listed as Entry 14 in the State List (List II).
Entry 26 in the State List refers to “trade and commerce within the State”.
Entry 27 in the State List refers to “production, supply and distribution of goods”.
Entry 28 refers to “markets and fairs”.
For these reasons, intra-State marketing in agriculture was always considered a legislative prerogative of States.
What was the legal basis used by the Parliament to pass the Farm Acts
The central government invoked Entry 33 in the Concurrent List (List III).
Entry 26 and 27 in List II are listed as “subject to the provisions of Entry 33 of List III”.
Entry 33 in List III: Trade and commerce in, and the production, supply and distribution of, — (a) the products of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest, and imported goods of the same kind as such products; (b) foodstuffs, including edible oilseeds and oils; (c) cattle fodder, including oilcakes and other concentrates; (d) raw cotton, whether ginned or unginned, and cotton seed; and (e) raw jute.
Historical background of “Entry 33” of Concurrent List
Entry 33, in its present form, was inserted in List III through the Constitution (Third Amendment) Act, 1954 after heated constitutional debates.
The contention of the dissent was the following:
As per Article 369 in the original version of the Constitution, the responsibility of agricultural trade and commerce within a State was temporarily entrusted to the Union government for a period of five years beginning from 1950.
The 1954 Amendment attempted to change this into a permanent feature in the Constitution.
According to dissident “if matters enumerated in Article 369 in were placed in List III, State autonomy would be rendered illusory and State powers and rights would be progressively pulverised…”.
While another dissident argued that “passage of the Bill would transform the Indian Constitution into a “unitary Constitution” instead of a “federal Constitution” and reduce “all the States’ powers into municipal powers”.
Notwithstanding the strong dissenting voices, the Bill was passed.
Let’s look into the related Supreme Court Judgments
In many of its judgments after 1954, the Supreme Court of India has upheld the legislative powers of States in intra-State agricultural marketing.
Most notable was the ruling of the five-judge Constitution Bench in I.T.C. Limited vs. Agricultural Produce Market Committee (APMC) and Others, 2002.
The Tobacco Board Act, 1975 had brought the development of the tobacco industry under the Centre.
However, Bihar’s APMC Act continued to list tobacco as an agricultural produce.
In this case, the question was if the APMC in Monghyr could charge a levy on ITC for the purchase of unprocessed tobacco leaves from growers.
An earlier judgment had held that the State APMC Act will be repugnant to the Central Act, and hence was ultra vires.
But the Constitution Bench upheld the validity of the State APMC Act, and ruled that market fees can be charged from ITC under the State APMC Act.
Consider the question “Examine the validity of legal basis used by the Parliament to pass the Farm Acts. Why it could face the legal challenge?”
Conclusion
It was unwise on the part of the Centre to use Entry 33 in List III to push the Farm Bills. Such adventurism weakens the spirit of federal cooperation that India needs in this hour of crisis. Second, agriculture is exclusively a State subject.
Back2Basics: Read more about 3 Agricultural Acts passed by the Parliament here-
The article argues for the greater role to Asset Reconstruction Companies by allowing them to invest in the equity [shares] of the distressed companies.
Context
In a recently released paper “Indian Banks: A time to reform” Viral Acharya and Raghuram Rajan argued for a greater role for Asset Reconstruction Companies.
They argue that when there are fewer bids in a bankruptcy auction, the value on loans is better realised if read an asset reconstruction company takes over the borrower and places the firm under new management.
Current limits on the role of ARC
The RBI limited the role of ARC to participation in resolutions under the Insolvency and Bankruptcy Code, 2016 (IBC) only by partnering with an equity investor, which is the resolution applicant.
If the application succeeds, the equity investor would acquire the shares, while the ARC trust would acquire the debt.
Background of the ARCs
Some stakeholders are asking for extending the role of ARCs by allowing direct invest in the equity of distressed companies through IBC resolution just like private equity funds.
The RBI doesn’t appear to favour such an extended role for ARCs.
This is due to the uninspiring performance of the Asset Reconstruction Companies in the past.
At the time of the Asian Financial Crisis, India’s non-performing assets stood at a whopping 14.4 per cent.
It was in this context that the Narasimham Committee (1998) recommended setting up an ARC specifically for purchasing NPAs from banks and financial institutions.
Subsequently, the SARFAESI Act, 2002 created the legal framework for establishing multiple private ARCs.
This policy achieved only modest success.
The maximum average recovery by ARCs as a percentage of total bank claims stood at 21.5 per cent in 2010.
Since then, it has steadily declined and reached 2.3 per cent in 2018.
This low recovery could be the result of collateral disposal rather than genuine business turnarounds [i.e. operating the business and turning it profitable].
Need for extending the role of ARCs
In 2002, India lacked an effective bankruptcy system.
There was no market for corporate control of distressed firms.
ARCs were originally designed for this peculiar institutional ecosystem.
They were required to hand over the distressed business back to the original promoter once they had generated enough value to repay the debt.
Consequently, ARCs had little incentive to turn around distressed businesses.
This situation completely changed in 2016 as the IBC seeks to maximise the value of distressed businesses through a market for corporate control.
ARCs should be able to fully participate in this market and attempt successful turnarounds by acquiring strategic control over distressed businesses.
In a solvent company, shareholders have stronger incentives than creditors to maximise enterprise value.
This is because an increase in enterprise value automatically increases the value of its equity.
In contrast, creditors do not benefit from increases in enterprise value beyond their individual claims.
If ARCs could hold more equity instead of debt in the resolved company, they would also have a stronger incentive to take strategic control to ensure successful turnaround.
Way forward
The law should enable ARCs to invest in a distressed company’s equity, whether by infusing fresh capital or by converting debt into equity.
Effectively, an ARC should act more like a private equity fund, as Acharya and Rajan suggested.
This in turn would make the market for corporate control under IBC deeper and more liquid, improving ex-ante recovery rates for banks.
Consider the question “What are Asset Reconstruction Companies? How allowing the ARCs to invest in equity of distressed companies under IBC help successful turnaround of the distressed business?”
Conclusion
If only ARCs are allowed to directly participate in IBC resolutions by infusing equity, they could emerge as the most efficient vehicle for turning around distressed Indian businesses.
Back2Basics: Difference between debt and equity
Debt market and equity market are two broad categories of investment available in the general investment milieu.
Equity markets trade in shares or stocks of the company listed on the stock exchanges.
A stock in a company indicates a unit in the ownership of the company.
As shareholders, you become part owners of the company.
The largest shareholder, with 50% or more shares, becomes the owner of the company.
Equity markets are riskier than debt markets.
Debt is a form of borrowed capital.
The central or state governments raise money from the market by issuing government securities or bonds.
In effect, the government is borrowing money from you and will pay interest to you at regular intervals.
The principal amount is returned on maturity.
In the same way, a company raises money from the market by selling debt market securities such as corporate bonds.
The debt market is made up of bonds issued by government authorities and companies.
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The Goods and Services Tax (GST) Council has failed to iron out differences between some States and the Centre over the plan to get States to borrow from the market to meet the shortfall in compensation cess collections this year.
Try this question from CSP 2018:
Q.Consider the following items:
Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
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
About GST Council
The GST Council is a federal body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
It is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
How is the GST Council structured?
The GST is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.
According to the article, the GST Council will be a joint forum for the Centre and the States. It consists of the following members:
The Union Finance Minister will be the Chairperson
As a member, the Union Minister of State will be in charge of Revenue of Finance
The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.
Terms of reference
Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as the goods and services will be subject or exempted from the Goods and Services Tax.
They lay down GST laws, principles that govern the following:
Place of Supply
Threshold limits
GST rates on goods and services
Special rates for raising additional resources during a natural calamity or disaster
Americans Harvey J Alter and Charles M Rice, and British scientist Michael Houghton were awarded the Nobel Prize for Medicine or Physiology on Monday for the discovery of the hepatitis C virus.
Try this PYQ:
Q.Which one of the following statements is not correct? (CSP 2019)
(a) Hepatitis B virus is transmitted much like HIV.
(b) Hepatitis B. unlike Hepatitis C, does not have a vaccine.
(c) Globally, the number of people infected with Hepatitis B and C viruses arc several times more than those infected with HIV.
(d) Some of those infected with Hepatitis B and C viruses do not show the symptoms for many years.
Hepatitis C Virus
Hepatitis C virus (HCV) is a bloodborne virus and causes liver diseases. It refers to an inflammatory condition of the liver.
The novel virus caused several deaths in the 1960s and 1970s — but remained unknown until its discovery in the late 1980s.
What are other Hepatitis Viruses?
Before the discovery of the Hepatitis C virus, two other viruses were known to cause hepatitis in patients.
The Hepatitis A virus was known to spread mainly through contaminated food and water and caused a relatively milder form of liver inflammation.
Hepatitis B, discovered in the 1960s, was known to transmit mainly through infected blood and caused a more serious form of the disease.
Incidentally, the discovery of the Hepatitis B virus too was rewarded with a Nobel Prize in Medicine, given to Baruch Blumberg in 1976. There are vaccines available for this disease now.
How Hepatitis C came to observation?
The discovery and identification of the Hepatitis B virus facilitated the development of a diagnostic test to detect its presence in blood.
Thereafter, only blood sanitized from this virus would be given to patients, but it was observed that even this sanitized blood was able to prevent only 20% of the blood-borne hepatitis cases.
It was then that the search for the new virus began.
How is Hepatitis C treated?
Presently there is no vaccine available for HCV. However, it can be treated with antiviral medication.