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  • [pib] Indian Space Association

    The PM has launched the Indian Space Association (ISpA), an industry body consisting of various stakeholders of the Indian space domain.

    Indian Space Association (ISpA)

    • The ISpA is a premier industry association of space and satellite companies, which aspires to be the collective voice of the Indian space industry.
    • It will be headed by retired Lieutenant General AK Bhatt, who will be its Director General.
    • It will target to undertake policy advocacy and engage with all stakeholders in the Indian space domain. It will engage with the government and all its agencies.

    Why is the formation of ISpA significant?

    • Million-dollar industry: Governments across the world have poured millions of dollars to push the envelope in term of exploring the edges of the space.
    • Collaborated research: With time, governments and government agencies collaborated to explore newer planets and galaxies in search of life forms that exist outside Earth.
    • Private players involvement: In the recent past, private sector companies such as Elon Musk’s SpaceX, Richard Branson’s Virgin Galactic, and Jeff Bezos’ Blue Origin have taken the lead in spaceflight.
    • Easing workload on ISRO: Though India too has made significant strides in space exploration over time, state-run ISRO has been at the centre and front of this progress.

    What does ISpA aim to achieve?

    • Supplementing space research: One of the main goals of the organisation is to supplement the government’s efforts towards making India a global leader in commercial space-based excursions.
    • Commercial space exploration: ISpA said it would engage with stakeholders across the ecosystem for the formulation of an enabling policy framework which fulfills the government vision of leading commercial space exploration.
    • Establishing global linkages: ISpA will also work towards building global linkages for the Indian space industry to bring in critical technology and investments into the country to create more high skill jobs.

    Who are the stakeholders in this organisation? How will they contribute?

    • ISpA will be represented by leading domestic and global corporations that have advanced capabilities in space and satellite technologies.
    • It has taken off with several Indian and international companies betting on it as the next frontier to provide high-speed and affordable Internet connectivity to inaccessible areas as well.
    • This includes SpaceX’s StarLink, Sunil Bharti Mittal’s OneWeb, Amazon’s Project Kuiper, US satellite maker Hughes Communications, etc.
    • OneWeb, for example, is building its initial constellation of 648 low-earth orbit satellites and has already put 322 satellites into orbit.

    Why is satellite-based Internet important in India?

    • The expansion of the Internet in India is crucial to the Modi government’s dream of a digital India where a majority of government services are delivered directly to the customer.
    • The government aims to connect all villages and gram panchayats with high-speed Internet over the next 1000 days through BharatNet.
    • However, internet connectivity in hilly areas and far-flung places of Northeast India are still a challenge.
    • To overcome this, industry experts suggest that satellite Internet will be essential for broadband inclusion in remote areas and sparsely populated locations where terrestrial networks have not reached.
    • Satellite communications remain limited to use by corporates and institutions that use it for emergency use, critical trans-continental communications and for connecting to remote areas with no connectivity.

     

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  • Species in news: Dhole or Asiatic Wild Dog

    A recent study has identified some priority talukas/tehsils where habitats can be consolidated to enhance population connectivity for the dhole or Asiatic Wild Dog (Cuon alpinus).

    About Dhole

    Wildlife (Protection) Act, 1972: Schedule II (Absolute protection – offences under these are prescribed the highest penalties.)

    IUCN: Endangered

    • The dhole is a canid native to Central, South, East Asia, and Southeast Asia.
    • India perhaps supports the largest number of dholes, with key populations found in three landscapes — Western Ghats, Central India and Northeast India.
    • It is a highly social animal, living in large clans without rigid dominance hierarchies and containing multiple breeding females.

    Their significance

    • Dholes play an important role as apex predators in forest ecosystems.
    • Factors contributing to this decline include habitat loss, loss of prey, competition with other species, persecution due to livestock predation and disease transfer from domestic dogs.

    Try answering this PYQ:

    Which one of the following groups of animals belongs to the category of endangered species?

    (a) Great Indian Bustard, Musk Deer, Red Panda, Asiatic Wild Ass

    (b) Kashmir Stag, Cheetah, Blue Bull, Great Indian Bustard.

    (c) Snow Leopard, Swamp Deer, Rhesus Monkey, Saras (Crane)

    (d) Lion Tailed Macaque, Blue Bull, Hanuman Langur, Cheetah

     

    Post your answers here.

     

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  • 12th October 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1     Salient features of Indian Society, Diversity of India

    GS-2     Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

     GS-3    Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment; Agriculture and related issues

    GS-4    Aptitude and foundational values for Civil Service, integrity, impartiality and non-partisanship, objectivity, dedication to public service, empathy, tolerance and compassion towards the weaker­ sections.

    Questions:

    Question 1)

     

    Q1. India faces the ‘triple burden of malnutrition’ that threatens to erode the growth and development of its human resources and economy. Explain. Also, highlight various initiatives taken by the central government to tackle malnutrition.(15 Marks)

     

    Question 2)

    Q.2 “Delhi knows that Europe could significantly boost India’s capacity to influence future outcomes in the Indo-Pacific. It would also be a valuable complement to India’s Quad coalition”. Comment. (10 Marks)

    Question 3)

    Q.3 The agriculture sector is one of the significant contributors to greenhouse gas emissions. This underscores the importance of carbon policy for agriculture in India. In this context, suggest the steps needed to be taken under such policy. (10 Marks)

    Question 4)  

    Q4. An honest bureaucrat can be put to inconvenience but the dishonest one is more likely to suffer in the long run. Comment. (10 Marks)

     

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

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

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

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

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

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

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

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

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

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

    For the philosophy of AWE and payment: 

  • Q4. An honest bureaucrat can be put to inconvenience but the dishonest one is more likely to suffer in the long run. Comment. (10 Marks)

    Mentor’s Comments-

    • Explain what is meant by an honest and a dishonest bureaucrat in this context.
    • Elaborate how an honest bureaucrat can be put to inconvenience.
    • Discuss how the dishonest bureaucrat suffers in the long run.
    • Try to use examples in each case.
    • Conclude on the basis of the above points.
  • Q.3 The agriculture sector is one of the significant contributors to greenhouse gas emissions. This underscores the importance of carbon policy for agriculture in India. In this context, suggest the steps needed to be taken under such policy. (10 Marks)

    Mentor’s comment-
  • Q.2 “Delhi knows that Europe could significantly boost India’s capacity to influence future outcomes in the Indo-Pacific. It would also be a valuable complement to India’s Quad coalition”. Comment. (10 Marks)

    Mentor’s comment-
    • https://indianexpress.com/article/opinion/columns/india-eu-reltions-indo-pacific-diplomatic-agenda-7566717/
    • In the intro, mention recently announced EU’s Indo-Pacific strategy.
    • In the body, mention India’s immense possibilities with smaller European countries and also the prospects for larger strategic cooperation with the European collective, the emergence of Europe as a widening strategic option amid confrontation between the US and China, EU strategy for India outlined in 2018 etc.
    • Conclude by mentioning the need for India to build on the momentum in deepening the relationship with the block.
  • Q1. India faces the ‘triple burden of malnutrition’ that threatens to erode the growth and development of its human resources and economy. Explain. Also, highlight various initiatives taken by the central government to tackle malnutrition.(15 Marks)

    Mentor’s Comments-

    • Introduce by explaining the meaning of ‘triple burden of malnutrition’.
    • In the body, highlight the status of malnutrition in India citing various reports.
    • Also, very briefly mention some causes and consequences of malnutrition. Make use of flowcharts/diagrams.
    • List down the various initiatives taken by the government to address the issue.
    • Conclude by invoking the SDGs and mentioning that implementation of the initiatives taken by the government needs to be strengthened.
  • WTO raises 2021 goods trade outlook

    The World Trade Organization (WTO) has upgraded its world merchandise trade growth outlook to nearly 11 percent for this year, higher than 8% estimated in March.

    About WTO

    • The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade between nations.
    • Governments use the organization to establish, revise, and enforce the rules that govern international trade.
    • It officially commenced operations on 1 January 1995, pursuant to the 1994 Marrakesh Agreement, thus replacing the General Agreement on Tariffs and Trade (GATT) that had been established in 1948.
    • The WTO is the world’s largest international economic organization, with 164 member states representing over 96% of global trade and global GDP.
    • The WTO facilitates trade in goods, services and intellectual property among participating countries.
    • It prohibits discrimination between trading partners, but provides exceptions for environmental protection, national security, and other important goals.

    Report on Global trade

    • According to a WTO, global goods trade is expected to grow by 10.8 per cent compared to the forecast of 8 per cent in March, but with varied recovery, depending on the region.
    • The report said export volume growth in 2021 will be 8.7 per cent in North America, 7.2 per cent in South America, 9.7 per cent in Europe, 7 per cent in Africa, 5 per cent in West Asia and the highest for Asia at 14.4 per cent.
    • On the other hand, imports are expected to grow at a faster pace as compared to exports. Inbound shipments into North America are set to grow by 12.6 per cent.
    • It will be 19.9 per cent in South America, 9.1 per cent in Europe, 13.1 per cent in CIS, 11.3 per cent in Africa, 9.3 per cent in West Asia and 10.7 per cent in Asia.

    Key highlights for India

    • Exports from India have been rising consistently over the last few quarters, after plummeting for a few months as the outbreak of Covid-19 disrupted global trade.
    • India’s exports to its top trading partners such as the US, European Union, nations in West Asia, among others, are expected to rise.
    • Exports data during the first six months of the current fiscal year is emblematic of the fact that external demand has been robust.
    • Besides, supply-side disruptions can also be exacerbated by the rapid and unexpectedly strong recovery of demand in advanced and many emerging economies.

    Competing with China

    • Experts said with rising global demand, India should be able to compete in various segments vis-a-vis China.
    • Currently, China is facing supply-side as well as demand-side issues owing to several internal challenges (energy, debt crisis).
    • Therefore, India is in a good position to increase its exports, and can become a substitute for China across various product categories or sectors.
    • India can take advantage of the increasing global demand, which can ultimately translate into demand for Indian exports.

     

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  • Last 10 seats remaining||GET READY FOR SPRINT|| MAINS MANTHAN 2021||80 percent success rate in 2020 Mains|| Last few seats remaining||Register Now

    Last 10 seats remaining||GET READY FOR SPRINT|| MAINS MANTHAN 2021||80 percent success rate in 2020 Mains|| Last few seats remaining||Register Now

    Civil Services Examination result 2020 was released on 24th September 2021. Civilsdaily is proud to announce its toppers. In 2020, we took 50 Students for Mains exclusive one-to-one mentorship program and 80% got interview calls with 50% making it to the final list.

    CLICK HERE TO DOWNLOAD TOPPER COPIES

    Even Toppers of Civil services examination 2020 were impressed by the quality of questions from the Mains Test and Mentorship provided:

    A personal note by Karishma Nair, AIR 14 (2020)
    Quora Review by Pranav Vijayvergiya, AIR 65 (2020)
    A talk with Vaibhav Rawat, AIR 25 (2020)
    A talk by P Srija, AIR 20(2020)

    This year Mains Test Series will be more Quality driven and as per the pattern of the UPSC examination. The level of Questions will be Medium to Hard level. Also, we have made sure to bring more variety in program options so, that you can choose them as per your level of preparation and comfort.

    Civilsdaily is proud to announce the start of its Mains program for the UPSC examination 2021. Last year, our mains test series was able to match the themes of 90% of questions from the UPSC examination.

    Here is the proof of how our Mains Test questions matches UPSC examination:

    Why Civilsdaily Mains program?

    1. Question Formulation

    It happens under a team of experienced Civilsdaily faculty. Questions framed are from the most important UPSC relevant themes and papers are based on the latest pattern of UPSC.

    2. One-to-One Discussion on checked copy

    We believe in personalized individual attention. This is the biggest reason why you should join our TS. A one-to-one discussion with your Mentor will not only highlight your weaknesses but will also help in tracking your improvements over the subsequent tests.

    3. Answer Checking

    Our evaluation focuses 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.

    4. Model Answers

    More than just simply providing information, our model answers cover all the aspects of a question and provide enriching points to the student.

    CD Innovation – Color Coding – Red marking represents essential points to be written in answers. Green marking represents innovative points that can get you extra marks.

    MAINS MANTHAN 2021

    Here is the list of Mains programs available:

    Mains Guidance Plus

    Mains Guidance Plus is a wholesome package for UPSC Aspirants. The aim behind this program is not just to provide students with Model tests, but to cover multiple needs of students. From Mentorship to current affairs, the program has all the necessary elements needed for mains 2021.

    PROGRAM INCLUSION:

    Sectional Tests: 8 sectional tests to cover your static portions in detail. The scope will spread over your core subjects like History, economics, and polity, etc.

    Full-length tests: 12 FLTs to help you practice for the final Mains examination. These FLTs are patterned on UPSC Examination and have medium to high-quality questions. They will surely boost your preparation and test your analytical skills.

    One on One Mentorship: After every test, a call with a mentor will be arranged and you can clear your doubts on the paper. This is important as with your mentor you can discuss your weakness and strategize for the next paper.

    Quality Enrichment Program Notes: QEP is an intensive and holistic program for IAS Mains 2021 GS papers. We aim to cover up to 250 most relevant issues with a 360-degree view, covering all dimensions of each and every topic. Not only you’ll learn and analyze these issues but will also understand how to utilize them via Daily Answer Writing and Mains Test Series.

    Mains Super 50

    Mains Super 50 is a program apt for those aspirants whose focus lies on clearing Mains 2021. Those Students who have been practicing some answer writing and want to directly start with FLTs should opt for this. This program also has complete mentorship support.

    PROGRAM INCLUSION:

    Full-length tests: 12 FLTs to help you practice for the final Mains examination. These FLTs are patterned on UPSC Examination and have medium to high-quality questions. They will surely boost your preparation and test your analytical skills.

    One on One Mentorship: After every test, a call with a mentor will be arranged and you can clear your doubts on the paper. This is important as with your mentor you can discuss your weakness and strategize for the next paper.

    Weekly Zoom Call with Sukanya Ma’am: These calls will focus on paper discussion and students can as well raise their queries.

    Mains Guidance Mini

    Mentorship is a forte of Civilsdaily and once you experience it, you will believe it. Mains Guidance Mini is a program focused on mentorship-based improvement. You can appear in any Test series, we will provide you the mentorship on that paper.

    PROGRAM INCLUSION:

    10 Test Discussion: You can discuss 10 FLTs in which you have appeared recently. These tests can be from any institute. Just mail to us and we will provide you the guidance.

    One on One Mentorship: After submitting a test, a call with a mentor will be arranged and you can clear your doubts on the paper. This is important as with your mentor you can discuss your weakness and strategize for the next paper.

    TOPPER COPIES 2020

    Download and read how their answers improved after guidance from our mentors.

    Kunal Aggarwal Civilsdaily IAS UPSC Mains

    Other than these programs, you can check out our test series for Mains 2022 as well.

    https://www.civilsdaily.com/course/mains-essential-program-2022/

    ALL THE BEST FOR MAINS 2021!! LET THE FINAL PREPARATION BEGIN!!

  • Adapt to the expectations of UPSC, bury old ways of preparation | Fill Samanvaya for IAS 2022 to know how

    Adapt to the expectations of UPSC, bury old ways of preparation | Fill Samanvaya for IAS 2022 to know how

    Do you know what UPSC expects from an aspirant? Have you had a look at Pre 2021 paper? It can be taken as a watershed moment. If you feel you’re at the crossroads this is for you.


    In 2020, Civilsdaily helped 80+ Civilsdaily students secured ranks in the exam and 30 secured ranks in the top 100. And now, it’s time to look ahead.

    The 10th Oct 2021 in many ways was a watershed moment for IAS aspirants. Prelims 2021 has shocked veterans and baffled the first-timers. If anything this paper has taught is that you need to adapt to the expectations of UPSC and adopt a new approach.

    UPSC is changing. No more is it about isolating yourself and just doing current affairs, static, attending random classes, or reading a plethora of books. It’s time to bury the old ways for IAS preparation, for good.

    We’ve had a discussion with around 3500 IAS aspirants (beginners and veterans) last month and all of them had doubts related to either sources and books or answer writing and even essays and interviews.

    To borrow from the parable of ‘blind men and the elephant’ almost all of these aspirants were trying to make sense of UPSC but unable to look at the whole picture. You need to tackle that ‘elephant in the room’. Look at the holistic picture. First, understand what it stands for, what expectations do they have from you, then understand how to fulfill them, then plan and move forward.

    How to prepare for upsc 2021? Strategy for upsc 2021?
Answer writing for 2020

    Broadly, six factors determine your success in cracking this prestigious IAS exam and the most important being understanding the expectations of UPSC and according to that planning and strategizing; other being Learning – Knowledge and information; Analyzing – making linkages, connections, etc.; Executing and utilizing information; and Constant course correction – because mistakes are inevitable, need to rectify them asap.

    But how to do that?

    How to prepare for upsc 2021? Strategy for upsc 2021?
Answer writing for 2020

    Failing to tackle any one of them, feeds into a vicious cycle. Without guidance or mentoring, understanding where the problem lies in and how to rectify it becomes problematic.

    This is where our 3 tier mentoring comes in:

    1. First step starts with this Samanvaya call: Once you fill in the form, our senior mentors get on a 30-40 minute call with you to understand your prep level, working/ study constraints, current strategies, and create a step by step plan for next week, next month and so on.

    2. You are given access to our invite-only chat platform, Habitat where you can ask your daily doubts, discuss your test-prep questions and have real-time, live sessions on news and op-eds, and find your optional groups.

    How to prepare for upsc 2021? Strategy for upsc 2021?
Answer writing for 2020
    Daily target monitoring.

    3. The third and the most personalized tier is the 1 on 1 mentor allotment who stays with you through the course of your UPSC preparation – always-on chat and on scheduled calls to help you assess, evaluate, and chart the next milestone of your IAS 2022 journey.


    (Civilsdaily’s mentor will call you within 24 hours.)


    Who are you?

    1. Working Junta? If you are preparing for IAS 2022 and working simultaneously, we can help you strategize and decipher the IAS exam and design a timetable that fits right in your hectic schedule.
    2. First-time prep? If you are in the last year of college or thinking of dropping a year and preparing for IAS 2022 full time, we can help you pick the right books and craft a practical & personal strategy.

    Once done, we will call you within 24 hours or so.


    How to prepare for upsc 2021? Strategy for upsc 2021?
Answer writing for 2020

    Here are some testimonials of our students about Samanvaya and our propriety chat interventions:


    Our rankers in 2020

  • Scoring 90+ in Prelims? Begin your mains preparation by attending this FREE webinar and speaking to our mentors.

    Scoring 90+ in Prelims? Begin your mains preparation by attending this FREE webinar and speaking to our mentors.

    Dear aspirant,

    Prelims is over, and it’s time to gear up for Mains. And if you are scoring 90+ in UPSC Prelims 2021, you should start your Mains preparation immediately!

    In UPSC 2020, Civilsdaily helped 80+ students secure ranks in the exam and 30 students of Civilsdaily secured ranks in the Top 100. The same team that helped aspirants become rankers last year is back again to help you.

    Sukanya mam’ (Mains Program Head) and Birendra sir (Mains Program Coordinator) will be speaking with students at a FREE webinar to discuss the strategies for your Mains. This is what you’ll get in the webinar:

    1. When to start practicing answers if you are appearing for Mains?
    2. What to study and what not to study. Smart hacks to complete and revise your syllabus in minimum time.
    3. Debunking myths associated with answer writing.
    4. What are the best practices in answer-writing ?
    5. Topper’s answer discussed and analysed live (Why did they score high marks).
    6. X-factor required in your answers to score above 100 marks in GS.
    7. Ideal strategy till Mains 2021.
    8. How to distribute your time between GS and Optionals?
    9. Importance of Structure and Presentation in getting high marks in UPSC GS mains.
    10. Open Q&A session with Participants.

    Date: 13/10/2021

    Time: 7 p.m. onwards

    If you have scored 90+ in Prelims this year, then this webinar is meant for you. Register now.

    About Sukanya Rana:

    Sukanya ma’am has firsthand experience of 4 mains and 2 interviews of UPSC. She has also appeared in the State PCS interview. Before she has worked as an officer in a public sector bank and now as a Mentor at Civilsdaily, she aims to guide future aspirants in finding success.

    About Birendra Yadav:

    Birendra Sir has been part of Mentoring team at Civilsdaily for more than 2 years now. He has a rich experience of guiding 200+ students. Presently, he is working as Mains Coordinator at Civilsdaily.

  • [Burning Issue] Pandora Papers Leak

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    Global elites continue to exploit the cracks in tax laws and the lax jurisdiction in tax havens to ring-fence their assets, through complex offshore structures, from scrutiny by authorities. The leak of financial documents, called the Pandora Papers, follows similar such exposés in the past, for instance, the Panama Papers and the Paradise Papers. While the earlier revelations had forced governments to tighten the regulatory architecture, owing to worries over these channels being used to launder money and evade taxes, the uncovering of this trove of 12 million documents now only underlines the challenges that the authorities continue to face.

    There are at least 300 persons of Indian nationality in the Pandora Papers. The papers consist of as many as 12 million documents from 14 companies in offshore tax havens with details of ownership of 29,000 offshore companies and Trusts.

    Let us look at the issue in detail.

    What is Pandora papers leak?

    • The Pandora Papers show that over 300 Indians have set up such offshore structures. It is the largest trove of leaked data exposing tax haven secrecy in history.
    • It includes over 11.9 million leaked files from 14 global corporate services firms which set up about 29,000 off-the-shelf companies and private trusts in not just obscure tax jurisdictions.
    • Such structures are typically used to not pay taxes, to launder money gotten through illegal means, and to sequester assets.
    • They provide a rare window into the hidden world of offshore finance, casting light on the financial secrets of some of the world’s richest people.
    • Businessmen, who have declared themselves bankrupt before recovery tribunals, hold billions through such offshore entities. Some have set up offshore trusts to hold assets.
    • The use of such structures may not necessarily be illegal; they do raise questions over the nature of the transactions.
    • These documents relate to the ultimate ownership of assets ‘settled’ (or placed) in private offshore trusts and the investments including cash, shareholding, and real estate properties, held by the offshore entities.

    What do these papers reveal?

    • They reveal how the rich, the famous and the notorious, many of whom were already on the radar of investigative agencies, set up complex multi-layered trust structures for estate planning.
    • This is particularly in jurisdictions that are loosely regulated for tax purposes, but characterized by air-tight secrecy laws.
    • The purposes for which trusts are set up are many, and some genuine too.

    But a scrutiny of the papers also shows how the objective of many is two-fold:

    1. Tax Avoidance: to hide their real identities and distance themselves from the offshore entities so that it becomes near impossible for the tax authorities to reach them and,
    2. Tax Evasion: to safeguard investments — cash, shareholdings, real estate, art, aircraft, and yachts — from creditors and law enforcers.

    How is Pandora different from the Panama Papers and Paradise Papers?

    • The Panama and Paradise Papers dealt largely with offshore entities set up by individuals and corporates respectively.
    • The Pandora Papers investigation shows how businesses disguised as Trusts have created a new normal with rising concerns of money laundering, terrorism funding, and tax evasion.

    What is a Trust?

    • A trust can be described as a fiduciary arrangement where a third party, referred to as the trustee, holds assets on behalf of individuals or organizations that are to benefit from it.
    • It is generally used for estate planning purposes and succession planning.
    • It helps large business families to consolidate their assets — financial investments, shareholding, and real estate property.
    • A trust comprises three key parties:
      1. Settlor — one who sets up, creates, or authors a trust;
      2. Trustee — one who holds the assets for the benefit of a set of people named by the ‘settlor’; and
      3. Beneficiaries — to whom the benefits of the assets are bequeathed.
    • A trust is not a separate legal entity, but its legal nature comes from the ‘trustee’.
    • At times, the ‘settlor’ appoints a ‘protector’, who has the powers to supervise the trustee, and even remove the trustee and appoint a new one.

    Is setting up a trust in India or one offshore/outside the country illegal?

    • The Indian Trusts Act, 1882 gives legal basis to the concept of trusts.
    • While Indian laws do not see trusts as a legal person/ entity, they do recognize the trust as an obligation of the trustee to manage and use the assets settled in the trust for the benefit of ‘beneficiaries’.
    • India also recognizes offshore trusts i.e., trusts set up in other tax jurisdictions.

    If it’s legal, what’s the investigation about?

    • There are legitimate reasons for setting up trusts — and many set them up for genuine estate planning.
    • A businessperson can set conditions for ‘beneficiaries’ to draw income being distributed by the trustee or inherit assets after her/his demise.
    • For instance, while allotting shares in the company to say, four siblings, the father promoter set conditions that a sibling can get the dividend from the shares and claim ownership of the shares.
    • This could be to ensure ownership of the enterprise within the family.
    • But trusts are also used by some as secret vehicles to park ill-gotten money, hide incomes to evade taxes, protect wealth from law enforcers.

    Why are the trusts set up overseas?

    Overseas trusts offer remarkable secrecy because of stringent privacy laws in the jurisdiction they operate.  From the investigation, some key tacit reasons why people set up trusts are:

    (1) Maintain a degree of separation

    • Businesspersons set up private offshore trusts to project a degree of separation from their personal assets.

    (2) Hunt for enhanced secrecy

    • Offshore trusts offer enhanced secrecy to businesspersons, given their complex structures. The Income-Tax Department can get information only with the financial investigation agency or international tax authority.

    (3) Avoid tax in the guise of planning:

    • Businesspersons avoid their NRI children being taxed on income from their assets by transferring all the assets to a trust.
    • Further, the tax rates in overseas jurisdictions are much lower than the 30% personal I-T rate in India plus surcharges, including those on the super-rich (those with annual income over Rs 1 crore).

    (4) Prepare for estate duty eventuality

    • There is pervasive fear that estate duty, which was abolished back in 1985 when Rajiv Gandhi was PM, will likely be re-introduced soon.
    • Setting up trusts in advance, business families have been advised, will protect the next generation from paying the death/ inheritance tax, which was as high as 85 per cent.

    (5) Flexibility in a capital-controlled economy

    • India is a capital-controlled economy. Individuals can invest only $250,000 a year under the Reserve Bank of India’s Liberalized Remittance Scheme (LRS).
    • To get over this, businesspersons have turned NRIs, and under FEMA, NRIs can remit $1 million a year in addition to their current annual income, outside India.

    (6) The NRI angle

    • Offshore trusts, as noted earlier, are recognised under Indian laws, but legally, it is the trustees — not the ‘settlor’ or the ‘beneficiaries’ — who are the owners of the properties and income of the trust.
    • An NRI trustee or offshore trustee taking instructions from another overseas ‘protector’ ensures they are taxed in India only on their total income from India.

    Can offshore Trusts be seen as resident Indians for tax purposes?

    • There are certain grey areas of taxation where the Income-Tax Department is in contestation with offshore trusts.
    • After the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, came into existence, resident Indians — if they are ‘settlors’, ‘trustees’, or ‘beneficiaries’ — have to report their foreign financial interests and assets.
    • NRIs are not required to do so — even though, as mentioned above, the I-T Department has been sending notices to NRIs in certain cases.

    What are the grey areas of Indian taxation

    • There are certain grey areas of taxation where the Income-Tax Department is in contest with offshore trusts.
    • After the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, came into existence, resident Indians have to report their foreign financial interests and assets.
    • NRIs are not required to do so.
    • The I-T Department may consider an offshore trust to be a resident of India for taxation purposes if the trustee is an Indian resident.
    • In cases where the trustee is an offshore entity or an NRI, if the tax department establishes the trustee is taking instructions from a resident Indian, then the trust may be considered a resident of India for taxation purposes.

    What are the government initiatives on Indian Taxation?

    (1) Legislative Action

    • The Fugitive Economic Offenders Act, 2018

    It seeks to confiscate properties of economic offenders who have left the country to avoid facing criminal prosecution or refuse to return to the country to face prosecution.

    • The Central Goods and Services Tax Act, 2017

    Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-state sales.

    • The Benami Transactions (Prohibition) Amendment Act, 2016
      • It is designed to curb black money and passed by parliament in came into effect.
      • Persons indulging in benami transactions may face up to 7 years’ imprisonment and fine.
      • Furnishing false information is punishable by imprisonment up to 5 years and fine.
      • Properties held benami are liable for confiscation by government without compensation.
      • Initiating Officer may pass an order to continue holding property and may then refer case to Adjudicating Authority which will then examine evidence and pass an order.
      • Appellate Tribunal will hear appeals against orders of Adjudicating Authority. High Court can hear appeals against orders of Appellate Tribunal.
    • The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
      • It penalizes the concealment of foreign income and provides for criminal liability for attempting to evade tax in relation to foreign income.
      • The Act gave a one-time opportunity to Indian residents to declare undisclosed foreign income and assets.
      • The concerned person had to pay tax at the rate of 30% and an equal amount by way of penalty if found having undisclosed overseas wealth.
      • However, in case of non-declaration, the provisions included slapping of tax at the rate of 30% along with a penalty equal to three times the amount of tax evaded or 90% of the undisclosed income or the value of the asset.
      • The Act provides for punishment of jail for 3-10 years for the willful evasion.
    • Prevention of Money Laundering Act, 2002
      • The PMLA was enacted in 2002 and it came into force in 2005. The chief objective of this legislation is to fight money laundering, that is, the process of converting black money into white.
      • The Act enables government authorities to confiscate property and/or assets earned from illegal sources and through money laundering.
      • Under the PMLA, the burden of proof lies with the accused.

    (2) International cooperation

    • Double Taxation Avoidance Agreements (DTAAs): India is proactively engaging with foreign governments with a view to facilitate and enhance the exchange of information under Double Taxation Avoidance Agreements (DTAAs)/Tax Information Exchange Agreements (TIEAs)/Multilateral Conventions.
    • Automatic Exchange of Information: India has been a leading force in the efforts to forge a multilateral regime for proactive sharing of financial information known as Automatic Exchange of Information which will greatly assist the global efforts to combat tax evasion.
    • Foreign Account Tax Compliance Act of USA: India has entered into an information sharing agreement with the USA under the act.

    Way Forward

    • In the current running economy, the measures taken by the governments are not sufficient enough to solve the problems of over growing scams and other economic crimes.
    • There is need of strict provisions to deal with such problems.
    • The governments are required to bring out certain reforms to overcome these issues such as to govern the crimes of economics the government should revamp the laws since the existing laws are not so harsh.
    • Also the enforcement agencies should try to keep bars on the benefits arising out of such crimes by the offenders or scam.
    • Side by side, all the private or public agencies such as income tax department, custom offices, police departments, SEBI, etc. should work in a coordination to quickly get rid of these economics crimes.

    Conclusion

    • It is clearly evident from the aforementioned cases that the occurrence and re – occurrence of such scams can only be attributed to the weak financial regulations and a failure of corporate governance in finance.

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  • (Today) Interact 1-1 with Ravi Kumar, AIR 84, UPSC 2020| Mains Answer Writing strategy | Your questions, Ravi sir’s answers

    (Today) Interact 1-1 with Ravi Kumar, AIR 84, UPSC 2020| Mains Answer Writing strategy | Your questions, Ravi sir’s answers

    Click here: Interact with UPSC IAS toppers on Habitat || 8 pm onwards on Habitat.

    Hey all, important announcement

    Ravi Kumar, AIR 84, IAS will be on Habitat at 8:00 pm today to interact directly with you. This will be a 1-1 interaction session with you all.

    You don’t want to miss out on this opportunity to discuss, learn and get guidance from UPSC IAS toppers.

    You will be interacting with other UPSC toppers and rankers on Habitat as well.

  • Scoring 90+ in Prelims? Begin your mains preparation by attending this FREE webinar  at 7 pm today and speaking to our mentors|Registration closing soon|

    Scoring 90+ in Prelims? Begin your mains preparation by attending this FREE webinar at 7 pm today and speaking to our mentors|Registration closing soon|

    Dear aspirant,

    Prelims is over, and it’s time to gear up for Mains. And if you are scoring 90+ in UPSC Prelims 2021, you should start your Mains preparation immediately!

    In UPSC 2020, Civilsdaily helped 80+ students secure ranks in the exam and 30 students of Civilsdaily secured ranks in the Top 100. The same team that helped aspirants become rankers last year is back again to help you.

    Sukanya mam’ (Mains Program Head) and Birendra sir (Mains Program Coordinator) will be speaking with students at a FREE webinar to discuss the strategies for your Mains. This is what you’ll get in the webinar:

    1. When to start practicing answers if you are appearing for Mains?
    2. What to study and what not to study. Smart hacks to complete and revise your syllabus in minimum time.
    3. Debunking myths associated with answer writing.
    4. What are the best practices in answer-writing ?
    5. Topper’s answer discussed and analysed live (Why did they score high marks).
    6. X-factor required in your answers to score above 100 marks in GS.
    7. Ideal strategy till Mains 2021.
    8. How to distribute your time between GS and Optionals?
    9. Importance of Structure and Presentation in getting high marks in UPSC GS mains.
    10. Open Q&A session with Participants.

    Date: 13/10/2021

    Time: 7 p.m. onwards

    If you have scored 90+ in Prelims this year, then this webinar is meant for you. Register now.

    About Sukanya Rana:

    Sukanya ma’am has firsthand experience of 4 mains and 2 interviews of UPSC. She has also appeared in the State PCS interview. Before she has worked as an officer in a public sector bank and now as a Mentor at Civilsdaily, she aims to guide future aspirants in finding success.

    About Birendra Yadav:

    Birendra Sir has been part of Mentoring team at Civilsdaily for more than 2 years now. He has a rich experience of guiding 200+ students. Presently, he is working as Mains Coordinator at Civilsdaily.

  • Explained: Global Minimum Tax Deal

    A global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has been agreed by 136 countries.

    What is the news?

    • The OECD said four countries – Kenya, Nigeria, Pakistan and Sri Lanka – had not yet joined the agreement.
    • However, the countries behind the accord together accounted for over 90% of the global economy.

    Why a global minimum tax?

    • With budgets strained after the COVID-19 crisis, many governments want more than ever to discourage multinationals from shifting profits – and tax revenues – to low-tax countries.
    • Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions.
    • This has allowed companies to avoid paying higher taxes in their traditional home countries.
    • The minimum tax and other provisions aim to put an end to decades of tax competition between governments to attract foreign investment.

    How would a deal work?

    • The global minimum tax rate would apply to overseas profits of multinational firms with 750 million euros ($868 million) in sales globally.
    • Govts could still set whatever local corporate tax rate they want.
    • However, buif companies pay lower rates in a particular country, their home governments could “top up” their taxes to the 15% minimum, eliminating the advantage of shifting profits.
    • A second track of the overhaul would allow countries where revenues are earned to tax 25% of the largest multinationals’ so-called excess profit – defined as profit in excess of 10% of revenue.

    What happens next?

    • The next step is for finance ministers from the Group of 20 economic powers to formally endorse the deal, paving the way for adoption by G20 leaders at an end October summit.
    • Nonetheless, questions remain about the US position which hangs in part on a domestic tax reform the Biden administration wants to push through the US Congress.
    • The agreement calls for countries to bring it into law in 2022 so that it can take effect by 2023, an extremely tight timeframe given that previous international tax deals took years to implement.
    • Countries that have in recent years created national digital services taxes will have to repeal them.

    What will be the economic impact?

    • The OECD, which has steered the negotiations, estimates the minimum tax will generate $150 billion in additional global tax revenues annually.
    • Taxing rights on more than $125 billion of profit will be additionally shifted to the countries were they are earned from the low tax countries where they are currently booked.
    • Economists expect that the deal will encourage multinationals to repatriate capital to their country of headquarters, giving a boost to those economies.
    • However, various deductions and exceptions baked into the deal are at the same time designed to limit the impact on low tax countries like Ireland, where many US groups base their European operations.

    Back2Basics: 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.

    Try this:

     

    Q.3) What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India? (10 Marks)

     

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  • Using Paddy Straw as Cattle Feed

    Punjab has now proposed to use the paddy crop residue as fodder for animals, especially cattle.

    Why such a move?

    • In Punjab, the total availability of paddy straw is about 20 million tones per annum.
    • The total value of this straw is Rs 400 crore approx., calculated on an average rate of Rs 200/quintal. Almost all of it is burnt in fields.
    • This accounts for economic loss apart from the loss of 77,000 tonnes of nitrogen and 5.6 million tonnes of Total Digestible Nutrients (TDN) which could be used for ruminant production.
    • Also nearly 30.4 per cent of rice straw is used for animal feed in Southeast Asia, Mongolia and China.

    Economics behind paddy straw

    • High silica and lignin content reduces its digestive properties.
    • Higher selenium content in paddy straw also limits its use as fodder in animals as compared to wheat straw.
    • However, if given in moderate quantities (up to 5 kg per animal per day), selenium poses no health hazard to the animal.
    • Paddy straw also contains oxalates (2-2.5%) which leads to calcium deficiency so mineral mixture should always be fed along with the straw.

    Treatments for feeding paddy straw to animals

    • Paddy Straw cannot be directly fed to animals. It has to undergo some treatments.
    • Two of them are: Urea-only treatment and urea plus molasses treatment.

    [A] Urea treatment of paddy straw

    • 14 kg of urea is dissolved in 200 litres water and spray on chopped paddy straw.
    • The fermented straws have soft texture with 6.0-8.0 per cent crude protein, 3.0-4.0 percent DCP and 55-60 per cent TDN.
    • This involves a combination of physical, chemical and biological treatments.
    • The paddy straw is chaffed and moistened (physical) with urea solution (chemical).
    • The breakdown of urea release ammonia gas, a part of which is utilised by microbes (biological) for their proliferation (enriching the straw with microbial protein).
    • This in turn results in breakage of lingo-cellulosic bonds making cellulose and hemi-cellulose assessable for utilization by microbes in the rumen.
    • The digestibility of cellulose increases from 40-45% in untreated paddy straw to 70-75 per cent in fermented wheat straw.

    [B] Urea plus molasses treatment

    • Also called “Urea-Molasses impregnated straw”, this method involves treating paddy straw with urea and molasses.
    • Urea 1 kg and molasses 3 kg was mixed thoroughly and mixed with water 10 kg. This is mixed with chaffed paddy straw and fed to animals on same day.
    • The experts however clarify that for maintenance of body weight in animals, paddy straw alone is not sufficient.
    • Minerals and green fodder supplementation is required.

    How does the nutritional value of paddy straw increase after urea treatment?

    • The TDN values in urea treated paddy straw increased manifold as compared to untreated straw.
    • Crude protein (CP) increased from 4.5% to 8%, digestible crude protein (DCP) from 1.5% to 4% and total digestible nutrients (TDN) from 40% to 55%.
    • The feeding of urea treated straw (6 kg/day) to lactating buffaloes giving about 10 kg milk/day can result in saving about 60 per cent of oilseed cake in the ration.
    • Feeding of paddy straw should be mixed with berseem, cowpea or Lucerne as it forms a maintenance ration.
    • The straw should be fed with concentrate mixture and additional DCP or limestone should be given to the animals to reduce the effect of oxalates.
    • Oxalates also interfere in carbohydrate metabolism perhaps due to non-availability of calcium as cofactor.

    What are the potentially harmful effects?

    • The intake of siliceous forages has been associated with urinary siliceous calculi in drier regions where water may be limited.
    • There have been no definitive studies in India, but urinary calculi are associated with rice straw consumption.
    • It has high selenium (0.5 to 4.5 % ) content which can cause serious health problems in dairy animals.

     

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  • Indian meteorite helps study Earth’s formation

    The researchers from the Geological Survey of India collected about 30 meteorite fragments with the largest weighing around a kilogram near the town of Katol in Nagpur in 2012.

    Significance of meteor study

    • Now, by studying the composition of these meteorite fragments, researchers have unraveled the composition expected to be present in the Earth’s lower mantle which is at about 660 km deep.
    • Studying the meteorite could also tell us more about how our Earth evolved from being a magma ocean to a rocky planet.

    Key component of the Meteor: Olivine

    • Initial studies revealed that the host rock was mainly composed of olivine, an olive-green mineral.
    • Olivine is the most abundant phase in our Earth’s upper mantle.
    • Our Earth is composed of different layers including the outer crust, followed by the mantle and then the inner core.

    How to study a meteorite?

    • The researchers took a small sample of the meteorite and examined it using special microscopy techniques.
    • The mineralogy was determined using a laser micro-Raman spectrometer.
    • These techniques helped the team identify, characterise the crystal structure of the meteorite and determine its chemical composition and texture.

    What does the new study show?

    • The international team of scientists examined a section of this highly-shocked meteorite. It resembles to the first natural occurrence of a mineral called bridgmanite.
    • The mineral was named in 2014 after Prof. Percy W. Bridgman, recipient of the 1946 Nobel Prize in Physics.
    • Various computational and experimental studies have shown that about 80% of the Earth’s lower mantle is made up of bridgmanite.
    • By studying this meteorite sample, scientists can decode how bridgmanite crystallized during the final stages of our Earth’s formation.

    Bridgmanite: On Earth vs. on Meteorite

    • Katol meteorite is a unique sample and it is a significant discovery.
    • The bridgmanite in the meteorite was found to be formed at pressures of about 23 to 25 gigapascals generated by the shock event.
    • The high temperature and pressure in our Earth’s interior have changed over billions of years causing crystallisation, melting, remelting of the different minerals before they reached their current state.
    • It is important to study these individual minerals to get a thorough idea of how and when the Earth’s layers formed.

    How does it help understand evolution of Earth?

    • The inner planets or terrestrial planets or rocky planets Mercury, Venus, Earth, and Mars are formed by accretion or by rocky pieces coming together.
    • They were formed as a planet by increased pressure and high temperature caused by radioactive elements and gravitational forces.
    • Our Earth was an ocean of magma before the elements crystallised and stabilised and the different layers such as core, mantle were formed.
    • The heavier elements like iron went to the core while the lighter silicates stayed in the mantle.
    • By using the meteorite as an analog for Earth, we can unearth more details about the formation.

    Answer this question from our AWE initiative:

    What are seismic waves? How have they helped in understanding the structure of the earth? (250 W/ 15 M)

     

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  • Who was Hermann Bacher?

    Hermann Bacher, popularly known as the ‘father of community-led watershed development in India’, passed away at the ripe old age of 97 years in Switzerland September 14, 2021.

    Hermann Bacher

    • Born in 1924, Bacher, came to India in 1948 at the young age of 24 years.
    • He was to spend the next 60 years of his life here, most of it in Maharashtra.
    • Struck by the poverty he saw in rural Maharashtra, he dedicated his life to the upliftment of the poor, the landless and rural women.
    • Bacher was given Germany’s highest civilian award, the Federal Cross of the Order of Merit in 1994, in recognition of his outstanding efforts.
    • In 2017, the United Nations Convention to Combat Desertifiucation (UNCCD) awarded WOTR the prestigious ‘Land for Life Award 2017’.
    • He is widely regarded and respected as a true ‘man of God’ for whom selfless service of the poor was worship at its most sublime. He is fondly remembered as ‘Bacher Baba’.

    Notable works

    • The 1972 droughts in Maharashtra led him to re-calibrate his developmental approach.
    • This meant that in rain-dependent rural Maharashtra, a shift had to be made from ‘resource exploitation’ to sustainable resource use, or ‘resource mobilisation’, as he described it.
    • He helped thousands of landless labourers’ secure title to land under the Land Reforms Act, 1957, beginning in 1965.
    • He also organised lakhs of farmers to develop their farms and increase their agricultural productivity by helping them access irrigation, improved and hybrid seeds etc.

    Pioneering water harvest

    • Since rain fell in the watersheds and landscapes villagers lived in, the only way to harvest and conserve rainwater wherever it fell was to undertake watershed development measures.
    • The idea was that “running water must be made to walk; walking water made to stop and sink underground”.
    • This meant, planting trees and grasses, conserving forests, undertaking soil and water conservation works such as digging contour trenches, raising farm bunds, etc.
    • It also meant building water harvesting structures on the streams (check dams, earthen bunds, etc) in a systematic manner across the entire landscape of the village, beginning from the top.

    Establishing the IGWDP

    • Through his work, was born the idea which later became the large-scale Indo-German Watershed Development Program (IGWDP) that he conceived and launched in Maharashtra in 1989.
    • This was in collaboration with and the support of the Governments of India, Maharashtra and Germany, NABARD and the non-profit sector.
    • Its unique and ground-breaking feature was that it put the villagers in the driver’s seat — the community would plan the programme, implement it and maintain the watershed assets.
    • Funds, substantial amounts, would be given directly to them and they would have to manage and account

     

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  • Linear No-Threshold (LNT) Model for Radiation Safety

    The U.S. Nuclear Regulatory Commission (NRC) decisively upheld the Linear No-Threshold (LNT) model to prescribe radiation safety standards, ending the protracted controversy on the topic.

    What is the LNT Model?

    • The LNT is a dose-response model used in radiation protection to estimate stochastic health effects such as radiation-induced cancer, genetic mutations etc. on the human body due to exposure to ionizing radiation.
    • The LNT model states that biological effects such as cancer and hereditary effects due to exposure to ionising radiation increase as a linear function of dose, without threshold.
    • It provides a sound regulatory basis for minimizing the risk of unnecessary radiation exposure to both members of the public and radiation workers.

    Why in news?

    • LNT model continues to provide a sound basis for a conservative radiation protection regulatory framework that protects both the public and occupational workers.
    • The model helps the agencies to regulate radiation exposures to diverse categories of licensees, from commercial nuclear power plants to individual industrial radiographers and nuclear medical practices.
    • There are also studies and findings that support the continued use of the LNT model, including those by national and international authoritative scientific advisory bodies.

     

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