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  • [PREMIUM] Views on inflation: A matter of interest

    Why in the News? 

    AAZData released showed that Retail Inflation had edged marginally upward last month.

    What is Inflation?

    • Inflation, as per the definition provided by the International Monetary Fund, represents the pace at which prices rise within a specified timeframe, covering a comprehensive assessment of general price escalations or those about particular goods and services. To measure the inflation there are different types of inflation index.
    • An Inflation Index is a statistical measure used to track changes in the overall price level of goods and services in an economy over a specific period. It quantifies the rate of inflation by comparing the current prices of a selected basket of goods and services to their prices in a base period.

    In India, there are primarily two types of inflation indices used to measure price changes:

    • Consumer Price Index (CPI): The CPI measures changes in the prices paid by urban and rural consumers for a basket of goods and services. It provides insights into inflation experienced by households and is divided into various sub-indices based on categories such as food, fuel, clothing, housing, transportation, medical care, recreation, and education. The Government of India releases multiple CPI indices, including:
    1. CPI for Industrial Workers (CPI-IW)
    2. CPI for Agricultural Labourers (CPI-AL)
    3. CPI for Rural Labourers (CPI-RL)
    4. CPI for Urban Non-Manual Employees (CPI-UNME)
    5. CPI for Rural (CPI-R)
    6. CPI for Urban (CPI-U)
    • Wholesale Price Index (WPI): The WPI tracks changes in the prices of goods at the wholesale level. It includes the prices of commodities traded in bulk such as agricultural products, minerals, crude oil, manufactured products, and electricity. The Office of the Economic Adviser, under the Department for Promotion of Industry and Internal Trade (DPIIT), releases the WPI every month.

    What is Retail Inflation? 

    • Retail inflation, also known as Consumer Price Index (CPI) inflation, tracks the change in retail prices of goods and services that households purchase for their daily consumption. CPI is calculated for a fixed basket of goods and services that may or may not be altered by the government from time to time.
    • How it is Calculated?
      • A representative basket of goods and services is selected to represent the typical consumption patterns of households
      • The cost of the basket of goods and services is calculated for a base period.
      • The CPI is calculated by dividing the cost of the basket in the current period by the cost of the basket in the base period and multiplying by 100.
      • The inflation rate is calculated by comparing the CPI of the current period with the CPI of the base period.

    Key points as per AAZData released by the National Statistical Office:

    • Retail Inflation Data: The National Statistical Office reported that retail inflation in India increased marginally, rising to 5.69% in December from 5.55% in November, primarily driven by higher food inflation
    • Cause of inflation: RBI Governor Shaktikanta Das had anticipated the rise in inflation due to risks in food prices, cautioning about potential second-round effects
    • Food Inflation: The Consumer Food Price Index surged to 9.53% in December, up from 8.7% in November, with notable inflation in cereals, vegetables, pulses, sugar, and spices
    • Industrial Production: The index of industrial production slowed to 2.4% in November, partly due to the base effect, with a 6.4% increase in industrial output for the first eight months of the year (April-November)
    • Monetary Policy Committee (MPC) Actions: The MPC maintained the status quo on rates and stance in the last meeting, focusing on withdrawing accommodation to align inflation with the target of 4%
    • Future Monetary Policy: There are discussions within the MPC about the necessity of an interest rate cut to prevent excessive real interest rates, especially as inflation is projected to moderate in the coming quarters

    Way Forward

    • Monetary Policy Adjustment: The Reserve Bank of India (RBI) could consider implementing a cautious monetary policy stance, possibly by tightening monetary policy through measures such as raising the repo rate. This would help curb inflationary pressures by reducing liquidity in the economy and making borrowing more expensive.
    • Supply-Side Interventions: The government could focus on addressing supply-side constraints in the agricultural sector to mitigate food price inflation. This might involve measures such as improving infrastructure, increasing agricultural productivity, reducing post-harvest losses, and enhancing market efficiency through better distribution networks.
    • Fiscal Policy Support: The government could also provide fiscal support to sectors facing supply-side disruptions or demand constraints, which could help stabilize prices and support economic growth. Targeted fiscal measures, such as subsidies for essential commodities or infrastructure investments, could be considered to address specific challenges contributing to inflation.

    Mains PYQ 

    Q Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (UPSC IAS/2022)

    Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)

    Prelims PYQ 

    Consider the following statements:(UPSC IAS/2020)

    1) The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

    2) The WPI does not capture changes in the prices of services, which CPI does.

    3) Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

    Which of the statements give above is/are correct?

    a) 1 and 2 only

    b) 2 only

    c) 3 only

    d) 1, 2 and 3

  • Implementing the Street Vendors Act

    Why in the News? 

    The Street Vendors Act was celebrated as a progressive legislation, but the law now faces numerous challenges in its implementation.

    The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014:

    Details
    Introduction and Objective
    • Introduced in Lok Sabha on 6 September 2012 by Kumari Selja, Union Minister of Housing and Urban Poverty Alleviation.
    • Objective: Regulate street vendors and protect their livelihoods.
    Enactment and Implementation
    • Came into force on 1 May 2014.
    • Aims to legalize vending rights and establish mechanisms for protection and regulation.
    • State-level rules and schemes are developed for execution.
    Roles and Responsibilities
    • Delineates roles of street vendors and government.
    • Commits to accommodating existing vendors in vending zones and issuing vending certificates.
    Participatory Governance
    • Establishes Town Vending Committees (TVCs).
    • Representation: 40% of TVC members, with 33% for women SVs.
    • TVCs tasked with including all existing vendors in zones.
    Grievance Redressal
    • Mechanisms for addressing grievances and
    • Establishes Grievance Redressal Committee chaired by civil judge or judicial magistrate.
    Survey and Identification States/ULBs conduct surveys to identify vendors at least once every five years.
    Certificate of Vending
    • Granted to vendors above 14 years.
    • Can be transferred to family members.
    • Can be cancelled

    Significance of street vendors 

    • Role of Street Vendors: Street vendors constitute about 2.5% of any city’s population and play multifaceted roles in city life, providing essential services, modest income for migrants and the urban poor, and affordable goods for others.
    • Integral to Urban Life: Street vendors are essential for maintaining affordability and accessibility to food, nutrition, and goods distribution, and they are integral to the cultural fabric of cities like Mumbai and Chennai.

    Challenges faced during the implementation:

    • Administrative Challenges: Increase in harassment and evictions of street vendors despite the Act’s emphasis on protection and regulation.Outdated bureaucratic mindset viewing vendors as illegal entities.
      • Lack of awareness and sensitization about the Act among state authorities, the public, and vendors.
      • Limited influence of street vendor representatives in Town Vending Committees (TVCs), often remaining under the control of local city authorities.Tokenistic representation of women vendors in TVCs.
    • Governance Challenges: Weak existing urban governance mechanisms.
      • Lack of integration of the Act with the framework established by the 74th Constitutional Amendment Act for urban governance.
      • Insufficient powers and capacities of ULBs.
      • Focus on top-down policies like the Smart Cities Mission on infrastructure development, ignoring provisions for the inclusion of street vendors in city planning.
    • Societal Challenges: The prevailing image of the ‘world-class city’ tends to be exclusionary.Marginalization and stigmatization of street vendors as obstacles to urban development rather than legitimate contributors to the urban economy.
      • Reflection of these challenges in city designs, urban policies, and public perceptions of neighborhoods.

    Way forward 

    • Decentralization of Interventions: There’s a need to decentralize interventions and enhance the capacities of Urban Local Bodies (ULBs) to plan for street vending in cities.
    • Shift from Department-led Actions to Deliberative Processes: Moving away from high-handed department-led actions towards actual deliberative processes at the Town Vending Committee (TVC) level is crucial.
    • Amendments to Urban Schemes and Policies: Urban schemes, city planning guidelines, and policies need to be amended to include provisions for street vending.
    • Need-based Welfare Provisions: Broad welfare provisions of the Act should be used creatively to meet the emerging needs of street vendors, such as addressing the impact of climate change, competition from e-commerce, and reduced incomes.
    • Adaptation in National Urban Livelihood Mission: The sub-component of street vendors in the National Urban Livelihood Mission should acknowledge changed realities and facilitate innovative measures to address needs.

    Mains PYQ

    Q To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots?

  • Constitution and the Redistribution of wealth

    Why in the news? 

    The debate surrounding the redistribution of wealth has piqued interest during the ongoing election campaigns.

    What does the Constitution provide?

    • Preamble to the Constitution: It outlines the objectives of the Constitution, including securing social, and economic justice, liberty, and equality for all citizens.
    • Part III and IV:  These are principles that the central and State governments should follow to achieve social and economic justice in our country. Unlike the fundamental rights in Part III, the DPSP is not enforceable in court.
    •  Article 39(b) and 39 (c): Article 39(b) emphasizes the distribution of ownership and control of material resources to serve the common good. Article 39(c) aims to prevent the concentration of wealth in a manner detrimental to the common good.

    The history of the ‘Right to Property’ in the Indian Constitution:

    • Original Guarantee: The Constitution initially guaranteed the right to property as a fundamental right under Article 19(1)(f). It provided that individuals have the right to acquire, hold, and dispose of property.
    • Compensation Requirement: Article 31 of the Constitution mandated that the state must provide compensation in case of the acquisition of private property for public purposes.
    • Land Reforms and Public Welfare: The government, facing challenges such as land reforms and the need for public infrastructure development, found the original provisions restrictive due to inadequate resources. This led to amendments aimed at providing more flexibility in acquiring land for public welfare.
    • Constitutional Amendments: Notable amendments such as Articles 31A, 31B, and 31C were introduced to curtail the right to property and facilitate land acquisition for public welfare projects.
    • Judicial Interpretation of Constitution ammendment: The Supreme Court interpreted the relationship between fundamental rights and Directive Principles of State Policy (DPSP) in various cases. In the Golak Nath case (1967), the Court held that fundamental rights cannot be diluted to implement DPSP. However, in the Kesavananda Bharati case (1973), the Court upheld the validity of Article 31C, subject to judicial review.
    • Harmonious Balance: In the Minerva Mills case (1980), the Supreme Court emphasized the need for a harmonious balance between fundamental rights and DPSP in the Constitution.
    • 44th Amendment Act: In 1978, the property right was removed as a fundamental right through the 44th Amendment Act, making it a constitutional right under Article 300A. This aimed to reduce excessive litigation and protect public welfare projects.

    Impacts due to the shift from a Socialistic to a Market-Driven Economy:

    • Impact of Economic Policies: The socialistic policies of the early decades after independence focused on land reforms, nationalization of industries, high taxation rates, and regulations on private enterprise. These policies aimed to reduce inequality and redistribute wealth but were criticized for stifling growth and leading to inefficiencies.
    • Changes in Taxation: Over the years, there have been significant changes in taxation policies, including the abolition of estate duty in 1985 and wealth tax in 2016. Income tax rates were also reduced considerably, reflecting a shift towards a more business-friendly environment.
    • Growing Inequality: Despite economic growth, there has been a growing concern about inequality. Reports, such as the one by the World Inequality Lab, highlight the widening wealth and income gap, with a significant portion of the wealth concentrated among the top 10% of the population.
    • Opposition Criticism: The ruling party and its supporters have criticized the Opposition, alleging that their proposed measures, such as the reintroduction of inheritance tax, would burden even the poorer sections of society.
    • Legal Interpretation: The Supreme Court’s involvement in the debate is highlighted by its decision to constitute a nine-judge Bench to interpret whether Article 39(b) of the Constitution, which pertains to the distribution of material resources for the common good, includes private resources.
    • Central Question of the debate: The central question in the current debate revolves around the balance between economic policies that promote growth and efficiency versus those aimed at reducing inequality and ensuring social justice.

    Way forward: 

    • Inclusive Growth: While promoting innovation and growth, it’s essential to ensure that the benefits are distributed equitably across all sections of society, especially the marginalized. Policies should aim for inclusive growth where the benefits reach those who need them the most.
    • Debate and Adaptation: Economic policies should be framed after adequate debate and consideration, taking into account current economic models and global best practices. There should be a continuous process of adaptation and refinement to address emerging challenges and opportunities.
    • Empowerment of Marginalized: Special attention should be given to empowering marginalized communities through targeted interventions such as education, skill development, access to resources, and opportunities for economic participation.

    Mains PYQ: 

    Q Critically discuss the objectives of Bhoodan and Gramdan movements initiated by Acharya Vinoba Bhave and their success. (UPSC IAS/2013)

  • The need for the use of labour statistics

    Why in the news? 

    Trade unions can play a pivotal role in producing labour statistics

    Issues related to labour statistics

    • Lack of Rigorous Labour Statistics: Labour statistics are not as robust as economic and industrial data. While institutions like the Annual Survey of Industries (ASI) and the National Sample Survey Office (NSSO) provide valuable information.
    • Voluntary Reporting of Work Stoppages: Data collection on work stoppages relies on voluntary reporting, which may lead to underreporting or incomplete information. This lack of comprehensive data on strikes and other work stoppages affects the accuracy and reliability of labour statistics.
    • Limited Use of Evidence in Social Dialogue:Lack of evidence-based arguments in these dialogues undermines their effectiveness, leading to a perception of the ILC as a mere “talking shop.”
    • Class-Based Opinions without Data Support: Stakeholders often advocate for labour reforms based on “class-based opinions” rather than credible data or empirical evidence.

    The role of trade unions in producing labour statistics:

    • Data Collection on Labour Inspection: Trade unions can gather information and statistics on labour inspection practices, including the number of sanctioned and employed inspectors, inspection frequency, and coverage. This data can highlight deficiencies in inspection systems and advocate for their strengthening.
    • Monitoring Retrenchment and Closure Applications: Trade unions can track retrenchment and closure applications submitted to labour departments, along with permissions granted or refused. This data can provide insights into the prevalence of denials and the impact of labour regulations on job security.
    • Analysis of Strikes and Lockouts: Trade unions can utilize data on strikes and lockouts published by agencies like the Labour Bureau to analyze trends and patterns. This analysis can inform discussions on labour laws and industrial relations, challenging the need for harsher clauses on strikes.
    • Evidence-based arguments: Trade unions can use objective data and empirical studies to contest labour reforms in policy debates. By presenting evidence-based arguments, trade unions can influence decision-making processes and advocate for policies that promote workers’ rights and well-being.

    Conclusion:  

    Implement more robust and standardized data collection methods for labour statistics to ensure accuracy and consistency across different sources. This may involve leveraging technology, such as digital reporting systems, to streamline data collection processes.

    Mains PYQ 

    Q Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.

  • [PREMIUM] Conflict Regions in West Asia

    Why in the news?

    • The resurgence of West Asian rivalries has been reignited by the ongoing Hamas-Israel War, which commenced on October 7, 2023.
    • With a backdrop of historical conflicts, including the Iran-Iraq War and Israel’s engagements with Hezbollah and Hamas, the current conflict is escalating tensions in the region.

    About West Asia

    [A] Political Overview:

    1. Countries:
    • West Asia comprises 17 countries, including:
      • In Gulf Cooperation Council (GCC) has 6 countries such as Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman.
      • Middle Eastern countries like Iran, Iraq, Turkey, Syria, Lebanon, Jordan, Israel, Palestine, and Yemen.
      • Egypt is sometimes included in the definition of West Asia due to its geographical proximity and historical ties.
    1. Geopolitical Dynamics:
      • The region is characterized by complex geopolitical dynamics, including conflicts, alliances, and power struggles.
      • Ongoing conflicts include the Syrian Civil War, the Israeli-Palestinian conflict, and the Yemeni Civil War, among others.
      • Strategic interests of global powers, including the United States, Russia, and China, contribute to the region’s instability.

    [B] Physical Features:

    1. Terrain:
      • West Asia encompasses varied terrain, including vast deserts like the Rub’ al Khali in Saudi Arabia and the Syrian Desert in Syria and Jordan.
      • Mountainous regions include the Zagros Mountains in Iran, the Taurus Mountains in Turkey, and the Anti-Lebanon Mountains along the Lebanon-Syria border.
      • Fertile river valleys, such as the Tigris-Euphrates in Iraq and the Nile in Egypt, have historically supported agriculture and civilization.
    2. Climate:
      • The region experiences diverse climates:
        • Arid and semi-arid climates prevail in much of the interior, with hot summers and mild winters.
        • Mediterranean climates along the coastal areas, characterized by hot, dry summers and mild, wet winters.
        • Highland climates in mountainous regions, with cooler temperatures and higher precipitation.
    3. Natural Resources:
      • West Asia is endowed with abundant natural resources, notably oil and natural gas reserves, concentrated primarily in countries like Saudi Arabia, Iran, Iraq, and the Gulf states.
      • The region also possesses significant mineral deposits, including phosphates in Jordan, sulfur in Iraq, and metals like copper and iron in various countries.

    [C] Physiographical Details:

    1. Biodiversity:
      • Despite its predominantly arid climate, West Asia supports diverse ecosystems, including desert, mountain, and coastal habitats.
      • Unique species of flora and fauna, adapted to harsh environmental conditions, inhabit the region, including desert mammals like the Arabian oryx and mountain species like the Persian leopard.
    2. Water Resources:
      • Water scarcity is a pressing issue in West Asia, exacerbated by population growth, urbanization, and climate change.
      • Countries rely on shared river basins, such as the Tigris-Euphrates and the Nile, leading to water disputes and conflicts.
      • Desalination plants along the coastlines provide an alternative source of freshwater, particularly in Gulf countries.
    3. Human Geography:
      • The region is home to diverse ethnic and religious communities, including Arabs, Kurds, Turks, Persians, Jews, and Christians, among others.
      • Urbanization is on the rise, with major cities like Riyadh, Tehran, Istanbul, and Cairo serving as economic, cultural, and political centers.

    Flash Points in West Asia

    Conflict 

    Areas

    		 Description Flashpoints
    Israeli-Palestinian Conflict A protracted dispute over territory, borders, and self-determination between Israel and Palestinians. Gaza Strip: A densely populated coastal enclave with sandy beaches, urban areas, and limited agricultural land. It is approximately 41 kilometers long and 6 kilometers wide.

     

    Netzarim Corridor: The Netzarim Corridor is a just under seven-kilometer-long corridor that is set to cut Gaza City from the rest of the enclave, running east to west from the Israeli border south of Nahal Oz to the Mediterranean Sea. Israel has previously bisected the Gaza Strip to create a Buffer Zone.

    West Bank: Diverse geography including mountainous terrain, fertile valleys, and the Jordan River Valley. It covers an area of approximately 5,655 square kilometers.

    East Jerusalem: Hilly terrain with historic landmarks and religious sites, including the Old City with its ancient walls, mosques, and churches.
    Syrian Civil War Complex conflict involving multiple factions, resulting in immense humanitarian suffering. Aleppo: Surrounded by fertile plains and agricultural land, it is one of the oldest continuously inhabited cities in the world. It covers an area of approximately 190 square kilometers.

    Damascus: Situated in the foothills of the Anti-Lebanon Mountains, it is one of the oldest cities in the Middle East. It spans an area of around 105 square kilometers.

    Homs: Located along the Orontes River, it is an important industrial center with a history dating back to ancient times. It has an area of about 165 square kilometers.

    Idlib: Mix of agricultural plains, hills, and urban centers, covering an area of approximately 6,097 square kilometers.
    Iraqi Conflict Various conflicts including the Iraq War, sectarian violence, insurgency, and fight against ISIS. Baghdad: Flat terrain surrounded by fertile agricultural land, situated on the Tigris River. It covers an area of around 204 square kilometers.

    Mosul: Surrounded by plains, historic landmarks, and the Tigris River, it is one of Iraq’s largest cities. It spans an area of approximately 370 square kilometers.

    Fallujah: In the Euphrates River valley with arid landscapes and urban areas, it is strategically located near major highways. It covers an area of about 139 square kilometers.

    Kirkuk: Oil-rich region with diverse ethnic populations and mountainous terrain, it covers an area of approximately 9,679 square kilometers.
    Yemeni Civil War Involves the Yemeni government, Houthi rebels, and other factions, leading to a dire humanitarian crisis. Sana’a: Surrounded by mountains and valleys in the Yemeni Highlands, it is one of the highest capital cities in the world. It covers an area of approximately 73 square kilometers.

    Aden: Coastal city with a strategic port and urban areas, located on the Gulf of Aden. It spans an area of around 50 square kilometers.

    Hodeidah: Major port city with coastal plains, mountains, and urban areas, situated on the Red Sea coast. It covers an area of about 192 square kilometers.
    Lebanese-Israeli Tensions Sporadic clashes and occasional escalation over territorial disputes and Hezbollah’s presence. Southern Lebanon: Rugged terrain with mountains, fertile valleys, and coastal plains along the Mediterranean Sea. It covers an area of approximately 929 square kilometers.
    Kurdish-Turkish Conflict Involves the Turkish government and Kurdish separatist groups, focusing on Kurdish autonomy. Southeastern Turkey: Mountain ranges, plateaus, fertile river valleys, and urban areas, covering an area of approximately 190,534 square kilometers.

    Northern Iraq: Zagros Mountains, valleys, rivers, and urban centers, with an area of about 198,956 square kilometers.
    Iranian-Israeli Tensions Fueled by Iran’s support to militant groups and its nuclear program, leading to regional security concerns. Golan Heights: Plateau region with rocky slopes, volcanic hills, fertile agricultural land, and urban settlements. It spans an area of approximately 1,800 square kilometers.

    Southern Lebanon: Rugged terrain with valleys, plains, and urban areas, covering an area of about 929 square kilometers.
    Gulf States Tensions Rivalries among Gulf states are driven by ideological differences, political alliances, and economic interests. Qatar: Peninsula with desert terrain, low-lying coastal areas, and urban development, covering an area of approximately 11,586 square kilometers.

    Eastern Province of Saudi Arabia: Desert landscapes, oasis areas, oil fields, and urban centers, with an area of about 672,522 square kilometers.

     

    PYQ:

    [2015] Which one of the following countries of South-West Asia does not open out to the Mediterranean Sea?

    (a) Syria

    (b) Jordan

    (c) Lebanon

    (d) Israel

  • Taam Ja’: World’s Deepest Blue Hole

    Why in the news?

    Researchers have made a discovery in Mexico, uncovering the world’s deepest blue hole, known as Taam Ja’ Blue Hole (TJBH).

    What are Blue Holes?

    • Blue holes, such as TJBH, are formed in coastal regions with soluble bedrock, such as limestone, marble, or gypsum.
    • Water percolates through the rock, dissolving minerals and widening cracks, ultimately leading to the formation of sinkholes.
    • Famous examples: 410-foot Great Blue Hole in Belize, the 663-foot Dean’s Blue Hole in the Bahamas and the 328-foot Blue Hole in the Red Sea near Dahab, Egypt.

    About Taam Ja’ Blue Hole (TJBH)

    • TJBH extends at least 1,380 feet (420 meters) below sea level, making it the deepest known underwater sinkhole in the world.
    • It is located in Chetumal Bay off the southeast coast of the Yucatan Peninsula.
    • It was first discovered in 2021, was originally thought to be 900 feet deep.
    • This discovery surpasses the previous record-holder, the Sansha Yongle Blue Hole in the South China Sea, by an impressive 480 feet.

    Research Expedition and Findings

    • Scientists utilized a conductivity, temperature, and depth (CTD) profiler to collect data about the environmental conditions within the blue hole.
    • Despite reaching depths of 1,640 feet (500 meters), the CTD profiler was unable to reach the bottom of TJBH, indicating its remarkable depth.
    • Data from the profiler suggested the presence of different water layers within the blue hole, with conditions resembling those of the Caribbean Sea at depths below 1,312 feet (400 meters).

    PYQ:

    [2017] In the context of mitigating the impending global warming due to anthropogenic emissions of carbon dioxide, which of the following can be the potential sites for carbon sequestration?

    1. Abandoned and uneconomic coal seams.

    2. Depleted oil and gas reservoirs.

    3. Subterranean deep saline formations.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • Unveiling of Raja Ravi Varma’s Indulekha Painting

    Why in the News?

    The first true copy of Raja Ravi Varma’s painting “Indulekha” will be unveiled at Kilimanoor Palace, the birthplace of the legendary artist, on his 176th birth anniversary celebrations.

    About the Indulekha Painting:

    • The painting depicts Indulekha, the protagonist of the first modern Malayalam novel by O. Chandu Menon, published in 1889.
    • The painting holds significance as it is believed to have inspired Ravi Varma’s famous work, “Reclining Lady.”
    • The oil painting portrays Indulekha holding a letter, dated 1892.
    • It exhibits meticulous attention to detail and symmetry, characteristic of Ravi Varma’s style.

    Who was Raja Ravi Varma (1848-1906)?

    • Raja Ravi Varma was born in April 1848 in Kilimanoor, Kerala, to a family which was very close to the royals of Travancore.
    • Often referred to as the father of modern Indian art, he is widely known for his realistic portrayal of Indian gods and goddesses.
    • While he majorly painted for the royalty, he is also credited for taking art to the masses with his prints and oleographs.
    • Patronised by Ayilyam Thirunal, the then ruler of Travancore, he learnt watercolour painting from the royal painter Ramaswamy Naidu.
    • He later trained in oil painting from Dutch artist Theodore Jensen.

    Fame as a notable painter

    • Following a portrait of Maharaja Sayajirao of Baroda, he has commissioned 14 Puranic paintings for the Durbar Hall of the new Lakshmi Vilas Palace at Baroda.
    • Depicting Indian culture, Varma borrowed from episodes of Mahabharata and Ramayana for the same.
    • He also received patronage from numerous other rulers, including the Maharaja of Mysore and Maharaja of Udaipur.
    • As his popularity soared, the artist won an award for an exhibition of his paintings at Vienna in 1873.
    • He was also awarded three gold medals at the World’s Columbian Exposition in Chicago in 1893.
    • Viceroy Lord Curzon honoured him with the Kaisar-i-Hind Gold Medal for his service.

    Nature of his artforms

    • Much of his celebrated art also borrows heavily from Indian mythology.
    • In fact, he is often credited with defining the images of Indian gods and goddesses through his relatable and more realistic portrayals often painted with humans as models.
    • The depictions include Lakshmi as the goddess of wealth, Saraswati as the goddess of knowledge and wisdom, and Lord Vishnu with his consorts, Maya and Lakshmi.
    • Raja Ravi Varma aspired to take his art to the masses and the intent led him to open a Lithographic Press in Bombay in 1894.
    • The first picture printed at Varma’s press was reportedly The Birth of Shakuntala, followed by numerous mythological figures and saints such as Adi Shankaracharya.

    Major works

    • It is believed that he had made around 7,000 paintings before his death at the age of 58.
    • But only one painting is now left in ‘Chithrashala,’ the artist’s studio at Kilimanoor Palace — an unfinished portrait of ‘Parsi lady’ which was his last work.
    • Some of his popular works include ‘Lady in the Moonlight’, ‘Nair Lady Adorning Her Hair’, ‘Malabar Lady with Violin’, ‘Lady with Swarbat’, and ‘Maharashtrian Lady with Fruits’.
    [2018] The well-known painting “Bani Thani” belongs to the

    (a) Bundi school

    (b) Jaipur school

    (c) Kangra school

    (d) Kishangarh school

  • SEBI board approves amendment to Mutual Funds rules

    Why in the news?

    • The Securities & Exchange Board of India (SEBI) has recently approved amendments to SEBI (Mutual Funds) Regulations, 1996, aimed at enhancing the regulatory framework for Asset Management Companies (AMCs).
      • These amendments mandate AMCs to establish institutional mechanisms to deter potential market abuse, including front-running, following recent instances observed by the market regulator.

    What are Mutual Funds?

    • A mutual fund is a pool of money managed by a professional Fund Manager.
    • It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.
    • And the income / gains generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV.
    • SEBI regulates mutual funds through the SEBI (Mutual Funds) Regulations, 1996.

    Categories of Mutual Funds:

    1. An actively managed fund is a mutual fund scheme in which the fund manager “actively” manages the portfolio and continuously monitors the fund’s portfolio, deciding on which stocks to buy/sell/hold and when, using his/her professional judgement, backed by analytical research.
    2. A passively managed fund, by contrast, simply follows a market index, i.e., in a passive fund , the fund manager remains inactive or passive inasmuch as, he/she does not use his/her judgement or discretion to decide as to which stocks to buy/sell/hold , but simply replicates / tracks the scheme’s benchmark index in exactly the same proportion.

    Fund Structure

    • Mutual funds in India operate under a three-tier structure, comprising the
    1. Asset Management Company (AMC),
    2. Trustees, and
    3. Custodians.
    • The AMC manages the fund’s investments, the Trustees oversee the operations, and the Custodians safeguard the fund’s assets.

    Key highlights of the recent update:

    • Institutional Mechanism: AMCs are required to implement enhanced surveillance systems, internal controls, and escalation processes to identify and address specific types of misconduct, such as front-running, insider trading, and misuse of sensitive information.
    • Whistleblower Mechanism: To foster transparency, AMCs are mandated to have a whistleblower mechanism.
    • Recording of Communication: SEBI has exempted face-to-face interactions during market hours from the requirement of recording all communication by dealers and fund managers. This exemption will be effective upon the implementation of the institutional mechanism by AMCs.
    • Prudential Norms for Passive Schemes: SEBI has streamlined prudential norms for passive schemes, allowing equity passive schemes to invest up to the weightage of constituents in the underlying index, subject to a 35% cap on investment in sponsor group companies.

    PYQ:

    [2014] What does venture capital mean?

    (a) A short-term capital provided to industries

    (b) A long-term start-up capital provided to new entrepreneurs

    (c) Funds provided to industries at times of incurring losses

    (d) Funds provided for replacement and renovation of industries

  • [30 April 2024] The Hindu Op-ed: The EVM-VVPAT case judgment is disappointing

    Mains PYQ Relevance: 

    Q) In light of the recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India?  (UPSC IAS/2018)
    Q) To enhance the quality of democracy in India the Election Commission of India has proposed electoral reforms in 2016. What are the suggested reforms and how far are they significant to make democracy successful? (UPSC IAS/2017)

    Prelims:

    Consider the following statements:​  (UPSC IAS/2021)
    1. The Montagu-Chelmsford Reforms of 1919 recommended granting voting rights to all women above the age of 21.​
    2. The Government of India Act of 1935 gave women reserved seats in the legislature. ​

    Which of the statements given above is/are correct?​
    (a) 1 only
    ​(b) 2 only
    ​(c) Both 1 and 2
    ​(d) Neither 1 nor 2

    Note4Students: 

    Prelims: EVM; VVPAT; 

    Mains: Landmark Judgements by SC; Judicial Interventions;

    Mentor comments: H.G. Wells once said “Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write”. Just as water cannot be legislated to flow uphill, the establishment of statistical principles cannot be arbitrarily defined by authorities. The Supreme Court of India has recently dismissed a batch of petitions requesting 100% verification of votes cast using Electronic Voting Machines (EVMs) with Voter Verifiable Paper Audit Trail (VVPAT) slips. The top court recommended that the Election Commission of India (EC) needs to consider incorporating bar codes for each political party on the paper slips. Meanwhile, PM Modi has called the Supreme Court’s verdict a tight slap on the face of the Opposition raising doubts about EVMs and should now apologize to the nation. So, will the Supreme Court verdict end the EVM trust debate?

    Let’s learn

    —

    Why in the News?

    The SC of India cannot arbitrarily mandate that a uniform sample size of “5 EVMs per Assembly Constituency” is good enough for VVPAT-based audit of EVMs for all Assembly Constituencies across the country. 

    Context:

    • Ensuring the accuracy of votes cast is crucial – while VVPAT verification confirms votes as cast, discrepancies may arise in the counting process. 
    • Hence, to mitigate risks of EVM malfunction, it is essential to conduct manual counts of VVPAT slips against EVM tallies for a statistically significant random sample of machines, aligning with fundamental principles of statistical sampling theory to ensure the integrity of the electoral process.
    What is the VVPAT-based audit of EVMs?

    The VVPAT-based audit of EVMs is a statistical quality control technique used to ensure the accuracy of Electronic Voting Machines (EVMs) in elections.
    It involves randomly selecting a sample of EVMs and comparing their counts with the manual counts of voter slips from the Voter Verifiable Paper Audit Trail (VVPAT) system. 

    A typical case

    • Lot of Acceptance Sampling: The VVPAT-based audit of EVMs follows lot acceptance sampling, a quality control method where a sample is inspected for defects.
      • If defects exceed a set limit, the entire lot is rejected. Defective EVMs are those with discrepancies between EVM and VVPAT counts. 
    • Lack of Clarity: The Supreme Court did not specify the ‘population’ of EVMs to which its sample size relates. Further, the SC and ECI also lack clarity on handling defective EVMs in samples.
      • If defects are found, all EVMs from that population should be manually counted. Defining the population as Assembly or Parliamentary Constituencies impacts the detection probability of defective EVMs.

    What Election Commission of India (ECI) have claimed?

    • The ECI has claimed that there have been no instances of mismatch between the EVM count and the VVPAT count over the years. 
    • However, this claim is disputed, and the few mismatches that do occur could be due to multiple reasons like the well-functioning of the EVMs, an inadequate sample size that fails to detect defective EVMs effectively, or a combination of both factors. 

    Reasons behind the ECI’s claim

    • There are major three reasons:
      • The ECI and the Supreme Court’s endorsement of the current sample size and audit protocol is criticized as flawed. 
      • The Court’s judgment in the Association for Democratic Reforms vs Election Commission of India and Another (2024) is disappointing because it did not compel the ECI to make public how it has defined the ‘population’ to which its sample size relates and its ‘next steps’ in the event of a mismatch.
      • The Court also did not clarify these points on its own after seeking expert opinion.
    • Despite rejecting extreme demands like a return to paper ballots or 100% VVPAT verification, the Supreme Court’s prescribed sample size in 2019 was criticized as arbitrary and incorrect, highlighting the need for more statistically sound approaches in EVM audits.

    What needs to be done?

    • Need for Sound Audit System: We do not need to know the various ways an EVM may fail or be manipulated. What is required is a statistically sound VVPAT-based EVM audit system that can detect mismatches with 99% or 99.9% accuracy.
      • By implementing a robust, the integrity of the electoral process can be ensured without resorting to extreme measures like a return to paper ballots or 100% VVPAT verification.
    • Need to achieve Golden Mean: The VVPAT-EVM count matching should be done at the beginning of the counting day, not at the end. This statistical sampling-based, ‘management by exception‘ approach represents the golden mean as follows:
      • Where there is a perfect match, the results should be declared based on the EVM count.
      • Only where there is a mismatch, manual counting of VVPAT slips for the entire ‘population’ of EVMs should be done, and the results declared based on the VVPAT count.

  • Chunk of India’s forests ‘missing’ after 27-year-delay to file reports | Analysis

    Why in the news?

    SC ordered MoEFCC to upload State Expert Committee reports on unclassed forests due to concerns over the Forest (Conservation) Act Amendment 2023 constitutionality, impacting protection and potential diversion of these forests.

    What are unclassed forests?

    • Unclassed forests, also known as deemed forests, are forest areas that may belong to various entities such as government bodies (forests, revenue departments, railways), communities, or private owners. However, these forest areas have not been officially notified as forests.
    • The State Expert Committees (SECs) were tasked with identifying all such unclassed forests across the country (referring to Forest Working Plans and Land Revenue Records).
    • Additionally, SECs were required to physically identify any land patches that exhibit characteristics of forests, as per the dictionary meaning of forests, irrespective of their ownership status.

    What are the present issues?

    1. The missing forests in SECs 
    • Undermined the previous judgment: MoEFCC informed a Parliamentary Committee that SECs had identified unclassed forests, aligning with the proposed Forest (Conservation) Act Amendment, despite earlier criticism that the law undermined the Godavarman judgment.
      • However, an RTI application revealed that MoEFCC claimed not to have the SEC reports, raising questions about its assurance to the Parliamentary Committee.
    • Lack of verified data: Following a Supreme Court order, MoEFCC uploaded the SEC reports, but they showed a lack of verifiable data on the identification, status, and location of unclassed forests.
    • States not constituted SECs: Seven states and Union Territories, including Goa, Haryana, and Tamil Nadu, hadn’t constituted SECs, while others hadn’t fully complied with Supreme Court directives.
    • Non-traceable Forest: Ladakh formed an SEC only after the dissolution of Jammu & Kashmir, and Puducherry’s report was declared “not traceable”, further highlighting inconsistencies in the process.
    1. Disagreement with FSI data 
    • Insufficient timeline: Many states argue that the one-month timeline provided by the Supreme Court was insufficient for comprehensive work due to the voluminous nature of the task.
    • Relied on Existing data: Instead of conducting ground-truthing, physical cadastral surveys, and demarcation of unclassed forest lands, most states relied on existing data from forest and revenue departments. Some states, like Manipur and Sikkim, simply quoted figures from the Forest Survey of India (FSI).
    • Question on Data: The reliability of data is questioned, with Haryana’s report lacking clarity on data sources and creation dates. Only nine states provided the extent of unclassed forests, while others focused on different types of forest areas specified in the order.
    1. Lack of clarity in the Reports:
    • Failed to specify the geographic locations: Most states and UTs failed to specify the geographic locations of forests in their SEC reports, rendering the information provided largely unhelpful for accurate identification and protection.
      • But Tripura was an exception, providing Khaitan numbers for forest areas beyond those officially recorded, but the classification of land remained unclear.
    • Lack of on-ground verification: SEC is lagging that on-ground verification may have led to the widespread destruction of forests that should have been identified and protected nearly three decades ago.
      • Instances like Kerala’s SEC excluding ecologically significant areas like Pallivasal unreserve and Chinnakanal unreserve, critical for wildlife corridors and conservation, showcase the lack of diligence in identifying and protecting vital forest areas.

    Suggested Measures:

    • Extended Timeline: Provide states with a more realistic timeline to conduct comprehensive surveys and data verification, considering the voluminous nature of the task and the need for accuracy.
    • Ground Truthing and Surveys: Mandate states to conduct ground-truthing, physical cadastral surveys, and demarcation of unclassed forest lands to ensure accurate identification and mapping of forest areas.
    • Data Verification: Implement mechanisms for verifying and cross-referencing data obtained from various sources, such as forest and revenue departments and the Forest Survey of India, to ensure reliability and consistency.

    Main PYQ: 

    Q Examine the status of forest resources of India and its resultant impact on climate change.(UPSC IAS/2020)

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