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  • Issues faced by World Bank and IMF

    This article discusses some inherent issues with the international organizations (IOs) i.e., the World Bank (Bank) and International Monetary Fund (IMF) (aka Bretton Woods Twins). This comes in the backyard of the WB decision to scrap its flagship publication, the ‘Doing Business’ report.

    Issue over chair: A monopoly of the West

    • Common individuals to head: The individuals which are common to them: Paul Wolfowitz, Jim-Kim, David Malpass, Rodrigo Rato, Dominique-Strauss Kahn, Christine Lagarde, and Kristalina Georgieva.
    • Monopoly of US/EU: They have all become heads via a dual monopoly selection procedure: Only an American can head the Bank and only a European can head the IMF.
    • Personal integrity: This has been called into question, the most recent being the revelations of malfeasance at the World Bank where data was apparently massaged to make at least two major countries — China and Saudi Arabia— look better than they would otherwise have been.

    Issues with these heads: Hypocrisy

    • Political accountability: Within countries, we expect reasonable standards of integrity from heads of important institutions, and democratic political accountability mechanisms exist to ensure that.
    • Probity: The effectiveness and legitimacy of these individuals and indeed of the international institutions they head require personal qualities of probity.
    • Non-virtuous preachers: These heads often go around the developing world, preaching the virtues of good governance, from arguing against the scourge of corruption to improving data integrity.
    • Undue parameters: There are even World Bank indices to rank countries on those metrics.

    How has this impacted these institutions?

    Ans. The credibility of the institutions is lost.

    • It is not just the charge of hypocrisy, but also the effect on the morale and motivation of the staff of these institutions.
    • Many of them chose to work here because of a commitment to public service.
    • The recent letter by more than 300 former World Bank staff, expressing their anguish at the recent revelations on the Doing Business index, captures this sentiment.

    Why such issues grapple these institutions?

    • Goal definition: International institutions operate in a grey zone of neither clearly being in or outside the realm of formal politics and hence have weaker mechanisms of accountability.
    • Selection of heads: The selection procedure for choosing heads of the Bank and the Fund has been a dismal failure. Compromised heads are potentially more biased.
    • Indoctrination: Contrast this with the growing alarm and anxiety that characterizes the rise of China and its attempts to place its own nationals in existing IOs as well as creating new ones.

    Chinese has intruded even into these

    • Countries place their nationals to head these institutions, both for prestige and to pursue their national interests.
    • China has its own nationals now head four of the 15 UN specialized agencies (it suffered a rare setback to head the World Intellectual Property Organisation last year).

    Conclusion

    • The contest between the West (and especially the US) and China to shape the global order is becoming manifest.
    • China’s efforts, its success, and more broadly its influence in IOs should certainly raise deep concerns, most notably the suppression of the inquiry into the origins of the coronavirus.
    • Looking ahead, if the US and Europe do not hold themselves to the standards they exhort to the rest of the world, their credibility and legitimacy will continue to degrade.
    • This will cede ground and soft power to geopolitical rivals.

    Way forward

    • So, global political leaders convening next week for the annual meetings of the Bank and Fund must act with urgency and conviction to stem the rot.
    • They must open the selection of the heads of these institutions to the best candidate, regardless of nationality.
    • And to pave the way, they should clear up the current mess over the Doing Business saga.

    Back2Basics:

    International Org. | Part 7 | Bretton Woods Institutions – World Bank Group

     

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  • Air India Disinvestment Deal

    After 68 years, Air India is all set to return to the Tata fold.

    What is the deal?

    • The Tatas will own 100% stake in Air India, as also 100% in its international low-cost arm Air India Express and 50% in the ground handling joint venture, Air India SATS.
    • Apart from 141 planes and access to a network of 173 destinations including 55 international ones, Tatas will also have the ownership of iconic brands like Air India, Indian Airlines and the Maharajah.

    History of Air India

    • Prominent industrialist JRD Tata founded the airline in 1932 and named it Tata Airlines.
    • As India gained Independence, the government bought 49% stake in AI.
    • In 1946, the aviation division of Tata Sons was listed as Air India, and in 1948, the Air India International was launched with flights to Europe.
    • In 1953, Air India was nationalised and for the next over four decades it remained the prized possession for India controlling the majority of the domestic airspace.

    Why was Air India sold?

    • End of Monopoly: With economic liberalisation and the growing presence of private players, this dominance came under serious threat.
    • Govt running an airline: Ideologically too, the government running an airline did not quite gel with the mantra of liberalisation.
    • Continuous losses: By 2007, AI (which flew international flights) was merged with the domestic carrier, Indian Airlines, to reduce losses.
    • Wastage of taxpayers money: But it is the mark of how poorly the airline was run that it has never made a profit since 2007.

    Why wasn’t it sold earlier?

    Ans. Fear over Operational Freedom

    • The first attempt to reduce the government’s stake — disinvestment — was made in 2001 under the then NDA government.
    • But that attempt — to sell 40% stake — failed.
    • In 2018, the government made another attempt to sell the government stake — this time, 76%. But it did not elicit even a single response.
    • In the latest attempt started in January 2020, the government has been able to finally conclude the sale.

    So how was it managed this time?

    • Govt gives up stakes: The mere fact that the government retained a partial stake. In other words, as long as the government kept a certain shareholding of AI, private players did not seem interested.
    • Operational freedom: That’s because the mere idea of government ownership, even if it was as little as 24%, made private firms wonder if they would have the operational freedom needed.
    • Debt sharing: In the past, the government expected the bidders to pick up a certain amount of the debt. This time, the government let the bidders decide the amount of debt they wanted to pick up.

    Significance of the deal

    [A] From the government’s perspective: A success

    • Disinvestment: It underscores govt commitment to reducing the its role in the economy.
    • Easing burden on taxpayers: This claims to have saved taxpayers from paying for daily losses of AI.
    • Economic reforms: Given the historical difficulties in AI’s disinvestment, or any disinvestment at all this is a significant achievement.

    [B] Business perspective: Still a failure

    • Missing the target: Purely in terms of money, the deal does not result in as big a step towards achieving the government’s disinvestment target of the current year.
    • Unresolved bankruptcy: The assets left with the government, such as buildings, etc., will likely generate Rs 14,718 crore. But that will still leave the government with a debt of Rs 28,844 crore to pay back.

    [C] Value perspective: Success for Tatas

    • Business success: From the Tatas’ perspective, apart from the emotional aspect of regaining control of an airline that they started, AI’s acquisition is a long-term bet.
    • Investment boost: The Tatas are expected to invest far more than what they have paid the government if this bet is to work for them.

    Conclusion

    • Complete liberalization: The privatisation of Air India is a message from the Government to the markets and global investors that it has the political will to bite the reform bullet.
    • Roadmap for economic reforms: The govt had to shed the “over-conservatism” that is typical of bureaucracy.
    • Future disinvestments: A transaction as “tough and complex” as Air India’s in an open, transparent and competitive bidding process, will boost future privatisation.

    Way forward

    • Other loss-making PSUs continue to drain taxpayers’ hard-earned money and get abused and fleeced in the name of social welfare.
    • The govt should imbibe this experience gained in future disinvestment biddings.

     

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  • India-ASEAN FTA

    The Commerce and Industry Minister has called for a renegotiation of the India-ASEAN free trade agreement (FTA).

    Why such move?

    • The MCI aims to prevent its misuse by ‘third parties’ and remove trade restrictions as well as non-tariff barriers that he said had hurt Indian exports disproportionately since the pact was operationalized in 2010.
    • The focus needed to be on new rules to eliminate misuse ‘by third parties outside ASEAN’, the minister said, hinting at China.
    • India had to deal with several restrictive barriers on exports in the ASEAN region, particularly in the agriculture and auto sectors.

    About ASEAN

    • Members:
    • Officially the Association of Southeast Asian Nations, ASEAN is an economic union comprising 10 member states in Southeast Asia.
    • It promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration between its members and other countries in Asia.

    India-ASEAN Free Trade Agreement

    • The initial framework agreement for ASEAN–India Free Trade Area (AIFTA) was signed on 8 October 2003 in Bali, Indonesia.
    • The FTA came into effect on 1 January 2010.
    • The FTA had emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region.

    Background of the AIFTA

    • India’s Look East policy was reciprocated by similar interests of many ASEAN countries to expand their interactions westward.
    • After India became a sectoral dialogue partner of ASEAN in 1992, India saw its trade with ASEAN increase relative to its trade with the rest of the world.
    • Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$2.9 billion in 1993 to US$12.1 billion in 2003.
    • Total Indian FDI into ASEAN from 2000 to 2008 was US$1.3 billion.

    Acknowledging this trend and recognising the economic potential of closer linkages, both sides recognised the opportunities to pave the way for the establishment of an ASEAN–India Free Trade Area (FTA).

    Structure of the AIFTA

    • The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US$2.8 trillion.
    • It sees tariff liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products”.
    • The products include palm oil (crude and refined), coffee, black tea and pepper.

    Criticism

    While there are many benefits to the ASEAN-India FTA, there is concern in India that the agreement will have several negative impacts on the economy.

    • Opening-up its market: This FTA will allow them to increase the market access of their products.
    • No specific gains: It is criticised, however, that India will not experience as great an increase in market access to ASEAN countries as ASEAN will in India.
    • Export driven ASEAN: The economies of the ASEAN countries are largely export-driven. Considering India’s expansive domestic market, the ASEAN countries will look eagerly towards India as a home for its exports.
    • Huge trade deficit: Since the early 2000s, India has had an increasing trade deficit with ASEAN. It is feared that a gradual liberalisation of tariffs and a rise in imported goods into India will threaten several sectors of the economy.
    • Inaccessible Markets: As a dominant exporter of light manufacturing products, ASEAN has competitive tariff rates that make it difficult for India to gain access to the industry market in ASEAN countries.
    • Cheaper imports: The state of Kerala is an important exporter in the national export of plantation products. It fears that cheap imports of oil palm, rubber, coffee, and fish would lower domestic production, adversely affecting farmers and ultimately its economy.

     

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  • RBI suspends G-Sec Acquisition Programme (GSAP)

    The Reserve Bank of India (RBI) has decided to halt its bond-buying under the G-Sec Acquisition Programme (GSAP).

    Why such move?

    • The GSAP had succeeded in ensuring adequate liquidity and stabilising financial markets.
    • Coupled with other liquidity measures, it facilitated congenial and orderly financing conditions and a conducive environment for the recovery.

    What is GSAP?

    • The G-Sec Acquisition Programme (G-SAP) is basically an unconditional and a structured Open Market Operation (OMO), of a much larger scale and size.
    • G-SAP is an OMO with a ‘distinct character’.
    • The word ‘unconditional’ here connotes that RBI has committed upfront that it will buy G-Secs irrespective of the market sentiment.

    What are Government Securities?

    • These are debt instruments issued by the government to borrow money.
    • The two key categories are:
    1. Treasury bills (T-Bills) – short-term instruments which mature in 91 days, 182 days, or 364 days, and
    2. Dated securities – long-term instruments, which mature anywhere between 5 years and 40 years

    Note: T-Bills are issued only by the central government, and the interest on them is determined by market forces.

    Why G-Secs?

    • Like bank fixed deposits, g-secs are not tax-free.
    • They are generally considered the safest form of investment because they are backed by the government. So, the risk of default is almost nil.
    • However, they are not completely risk-free, since they are subject to fluctuations in interest rates.
    • Bank fixed deposits, on the other hand, are guaranteed only to the extent of Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

    Other decisions

    • The RBI, however, remained ready to undertake G-SAP as and when warranted by liquidity conditions.
    • It would also continue to flexibly conduct other liquidity management operations including Operation Twist (OT) and regular open market operations (OMOs).

    Answer this PYQ in the comment box:

    Q.Consider the following statements:

    1. The Reserve Bank of India manages and services the Government of India Securities but not any State Government Securities.
    2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
    3. Treasury bills offer are issued at a discount from the par value.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 Only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here:

     

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    Back2Basics: Open Market Operations (OMO)

    • OMOs is one of the quantitative monetary policy tools which is employed by the central bank of a country to control the money supply in the economy.
    • It is a part of the Market Stabilization Scheme (MSS) by the RBI.
    • OMOs are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions.
    • The central bank sells g-secs to remove liquidity from the system and buys back g-secs to infuse liquidity into the system.

  • What is Palk Bay Scheme?

    The Union Government is considering increasing the unit cost of deep-sea fishing vessels under the Palk Bay scheme to make it more attractive to fisherfolk.

    Palk Bay Scheme

    • The Palk Bay Scheme is the official scheme for diversification of trawl fishing boats from Palk Strait into deep sea fishing boats.
    • It is aimed at encouraging fishermen to take up deep-sea fishing and put an end to disputes arising between the India and Sri Lanka.
    • The project helps fishermen in the Palk Straits, who are not exposed to deep-sea fishing, to venture deep into the Indian Ocean, Arabian sea and other deep-sea areas to look for fish like tuna that are in high demand.

    Why need such a scheme?

    • Bottom trawling, an ecologically destructive practice, involves trawlers dragging weighted nets along the sea-floor, causing great depletion of aquatic resources.

    Key components of the scheme

    • The project aims to replace all trawler boats and introduce over 2,000 deep sea fishing boats in a course of five years.
    • The scheme, under the aegis of Blue Revolution scheme – is funded by the Centre – 50 per cent and state government – 20 per cent for a boat costing Rs 80 lakh.
    • Of the balance 30 per cent, 10 per cent is contributed by the beneficiary (fisherman), and the remaining 20 per cent is funded by banks.

    Must read:

    [Burning Issue] India- Sri Lanka Fishermen Issues

     

     

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  • 9th October 2021 | Prelims Daily with Previous Year Questions

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    [WpProQuiz 805]

    [WpProQuiz_toplist 805]

  • Podishetty Srija, AIR 20, UPSC 2020 || Inclination towards Studying Medicine & Dream to Serve People || UNHERD: Civilsdaily’s Toppers Talk Series (Link inside)

    Podishetty Srija, AIR 20, UPSC 2020 || Inclination towards Studying Medicine & Dream to Serve People || UNHERD: Civilsdaily’s Toppers Talk Series (Link inside)

    Talk to Srija’s UPSC Mentors- Talk to Srija’s UPSC Mentors:- https://forms.gle/iNnfxfRWHxJEsn8S6

    P Srija, AIR 20, UPSC 2020, in conversation with Birendra sir shared her mindset and thought process that helped him crack IAS exam. Srija also gave valuable advice to aspirants for prelims as well as mains.

    Srija, is an MBBS graduate and secured rank 20 in her first attempt in UPSC 2020 examination. In this series, she has talked about how a hardwork and a true mentor can change the journey of the aspirants.

    After she got to know from Anudeep Durishetty Rank 1 in 2017, it is clearly mentioned that she started preparing with Civilsdaily’s Prelims Test Series and Mains Essential Program that helped her a lot. Not only the test series but also Shweta Mam who is among the core mentor in Civilsdaily has helped her to evolve with the art of answer writing and motivated her at every stage of the preparation.

    In Civilsdaily, we have a team of such dedicated mentors helping aspirants at every stage of the preparation to understand their weaknesses and approaches to overcome them.

    Civilsdaily is proud to present AIR 20 P. Srija and congratulate her on her future endeavors.

    Let’s hear more from the winner himself in the video.

    To know more about Civilsdaily:- Talk to Srija’s UPSC Mentors:- https://forms.gle/iNnfxfRWHxJEsn8S6

    Heartiest congratulations to Podishetty Srija

    AIR 20

    UPSC Civil Services 2020

  • Daily Answer Writing Enhancement (AWE) Program is Back || Enrollments Open for the Months of October and November

    CLICK HERE TO JOIN awe PROGRAM

    The competition in the UPSC examination is fierce. One day and even writing one answer a day can make a huge difference. UPSC Prelims is on 10th October 2021. Many of you might want to take a break. And honestly, you deserve it!

    But writing just 4 answers a day can be a perfect balance to take a break and not lose momentum.

    Let’s keep the momentum going. 

    Answer writing practices through Civilsdaily’s Daily AWE program can reduce test anxiety and helps you ace the GS Mains answer writing. And what is a better way to practice for UPSC Mains Examinations than attempting Questions which are the closest to the demands of the UPSC Civil Services Mains Examination? The more you are accustomed to sitting for a period of time, answering questions, and pacing yourself, the more comfortable you will feel when you actually sit down to take the real UPSC Mains examinations yourself.

    We are working hard to make the program more featureful, highlight the best answers, show the competency levels of students.

    CLICK HERE TO JOIN awe PROGRAM

    WHAT THE PROGRAM INCLUDES:

    • Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you. A sample 2 week schedule is available below.
    • 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.
    • You can write your answer on the same day and attached a scanned copy. Within 4 days, a review of your answer will be provided.
    • Also, write the Razor payment ID, when you attached your answer.
    • If you are writing answers late, then please tag the mentor, to let him know about your submission. These answers will be evaluated as per the mentor’s schedule.

    SCHEDULE:

    Here is the schedule for the first week of October to give you an idea about how we will follow your Syllabus:

    CLICK HERE TO CHECK THE FULL SCHEDULE

    NOTE: For GS2 and GS3, we take questions from recent current affairs. This ensures coverage of both static and current affairs.

    For Course enrollment details, click the link given below.

    CLICK HERE TO JOIN awe PROGRAM
  • How to solve the UPSC 2021 Prelims Paper

    How to solve the UPSC 2021 Prelims Paper

    UPSC Prelims 2021 is almost here and there are some last moment strategies you should know about approaching the Prelims paper. These strategies are tried and tested and have given results time after time. My strategies have helped thousands of students crack Prelims and now it’s your time!

    These strategies are so effective that they were shared by India Today for all UPSC aspirants. You can read it by clicking the link below:

    Sajal sir’s strategy shared by India today

    And remember, after the Prelims, I would be sharing the paper analysis and expected cutoff on a free webinar. Don’t forget to fill the form below and register for a complete analysis of the Prelims paper, Sunday evening at 7 p.m.

    Register for sajal sir’s webinar – complete analysis + Expected cutoff
  • We don’t advertise vacancies. But when we do, we are looking for the crème de la crème. Work with us!

    We don’t advertise vacancies. But when we do, we are looking for the crème de la crème. Work with us!

    Civilsdaily is looking to hire across multiple roles.

    Click here and apply

    Dear All,

    Civilsdaily has become a force to reckon with. With our bold initiatives and maturing innovations, we are pushing the boundaries even further constantly thinking about bettering the learning outcomes for so many students.

    Inviting applications for open positions is a rare event for us. We don’t remember the last time we did something like this. This means it is an extremely rare opportunity for you.

    A career in education with Civilsdaily empowers you to help students, to be respected by them and by others, and to experience job satisfaction in a way that is impossible in many other careers.

    Our awesome offices at 1 LGF Apsara Arcade will leave a lasting impression on you.

    Work for Civilsdaily: click and apply
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    Our open office setup helps us foster collaboration keeping us ahead of the competition all the time.

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  • Challenges facing Indian Air Force

    Context

    A host of challenges greets India’s new Air Chief.

    Challenges

    • The challenges include the rewiring of India’s military into new theatre commands, the reservations expressed by the IAF about its “support” role and the visible depletion in operational air assets due to obsolescence and lack of new platforms.
    • The decline in platforms is stark and from a strength of 42 combat squadrons in 2002, the IAF now operates barely 30.
    • This shortfall in numbers would remain through this decade.
    • Even as there are plans to create new theatre commands and allocate existing air assets to the new formations, the depletion in numbers merits urgent review.

    Steps taken

    • The purchase of 83 Tejas Light Combat Aircraft (LCA) will be a fillip even as the sturdy MIGs are finally phased out.
    • In the next decade, the IAF hopes to induct the indigenous fifth-generation Advanced Medium Combat Aircraft (AMCA) and the Multi-Role Fighter Aircraft (MRFA) — a new platform that would be built in India with a foreign entity, the “original equipment manufacturer” (OEM), and thereby move up to 35 squadrons.
    • Issues: The AMCA is “under design” and India’s track record in the design and manufacture of indigenous fighter aircraft is cost- and time-intensive.
    • As regards the MRFA, the request for information for 114 jets has just been issued.
    • The Rafale experience and the long delays associated with it would suggest that speedy selection of an OEM will be elusive.

    Way forward

    • Air power is becoming technologically more refined with unmanned platforms, cyber-space linkages and AI advances.
    • The inherent trans-border nature of this military capability needs astute professional and political husbanding.
    • Acquiring credible aerospace power with a meaningful degree of indigenisation will need a greater degree of national resolve, professional integrity and resource allocation than is the case now.
    • China has demonstrated the degree of suasion and intimidation that airpower can bring to bear in relation to Taiwan.

    Conclusion

    A reality check about the quantity and quality of India’s air power and the roles it can undertake should precede its disaggregation to theatre commands in the run-up to India@75.

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  • Last Minute Revision Modules for UPSC CSE Prelims 2021

    Revision and practice of the mock test have incomparable importance in the UPSC Prelims examination. Considering this year’s prelims being just a week ahead, it’s high time that all of the appearing aspirants should go through the important and most repetiting topics being asked in the exam.

    Looking at the demand of the examination, we have started the “Mission Nikalo Prelims’ initiative for better coverage of the syllabus. We have cherrypicked the ‘60 most important topics‘ from where a maximum number of questions have been asked by UPSC in the past 10 years. We have accompanied the mock tests so that the practice angle should also get covered.

    It’s the best time to give the final touch to your preparation and cover the topics which have left due to a dearth of time. The link to the initiative is given below:

    Mission Nikalo Prelims (Click here)

    All the best!

  • 8th October 2021 | Prelims Daily with Previous Year Questions

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    [WpProQuiz 804]

    [WpProQuiz_toplist 804]

  • Seeding a data revolution in Indian Agriculture

    In June this year, two significant documents relating to the Indian agriculture sector were released.

    What are the reports about?

    • The first is a consultation paper on the India Digital Ecosystem of Agriculture (IDEA) and the second on Indian Agriculture: Ripe for Disruption from a private organisation, Bain and Company.
    • Through their work, these reports have depicted the agriculture reforms announced by the union government as a game-changer in the agriculture sector.

    Challenges highlighted

    The major challenges of the agriculture sector are:

    1. Food Sufficiency but Nutrition Deficiency
    2. High import of edible oil and oilseeds
    3. Yield plateaus
    4. Degrading soil, Water stress
    5. Inadequate market infra/linkages
    6. Unpredictable, volatile prices
    7. Post-harvest losses, wastages
    8. Lack of crop planning due to information asymmetry

    Key takeaway: Way for doubling farmers income

    • These reports in short argues that benefiting from the huge investments into the agri-ecosystem, doubling farmers’ income targets can be achieved in near future.
    • The Indian agriculture sector in future will encompass farm to fork and pave the way for a single national market with a national platform with better connection between producer and consumers.

    The forecast

    • The Bain report is a data-based prediction on agri-business scenarios, anchored to the agricultural set-up at present and predicting its future trajectories in another 20 years.
    • It includes targeting the production of alternative proteins, and food cell-based food/ingredients and initiating ocean farming, etc.
    • The report has a ‘today forward– future back approach’ and predicts a drastic investment opportunity development by 2025.
    • The agriculture sector (currently worth $370 billion), is estimated to receive an additional $35 billion investment.

    The two enabling conditions for such investment opportunities are:

    1. Changes in the regulatory framework, especially recent changes in the Farm Acts and
    2. Digital disruption

    The IDEA of integration

    • Digital disruption: The blueprint of “digital agriculture” is similar to the digital disruption mentioned in the Bain report.
    • Integration: Eventually, the farmer and the improvement of farmers’ livelihood is the aim of the IDEA concept and it is proposed to happen through tight integration of agri-tech innovation and the agriculture industry.
    • Enabling conditions: To be precise, the IDEA concept profounds the creation of second enabling conditions (which is described in the Bain report).
    • Openness of data: The IDEA principles explicitly talk about openness of data, which means open to businesses and farmers, indicating the kind of integration it aims at.
    • Value-added innovative services: by agri-tech industries and start-ups are an integral part of the IDEA architecture.
    • Data architecture: The services listed in the document (to be available on the platform) are equally important data for farmers and businesses.

    A thread of digital disruption

    • The IT industry has opposition to IDEA mainly due to the ethics of creating a Unique Farmer ID based on one’s Aadhaar number and also the potential for data misuse.
    • Beyond the news coverage about the prospects of achieving the goal of Doubling Farmers Income on which the present government has almost lost its hope.

    Issues with these reports

    • The Bain report has not been widely discussed — at least in the public domain.
    • The assumptions used by authors especially for its ‘future back approach’, need more or less focusing on widespread food production in controlled environments.
    • The emission, energy, and other resource footprints and sustainability issues around these techniques are not adequately studied.

    Yet these reports are important

    • The report has convincingly demonstrated the business opportunity available in supply chains between farm to APMC mandi and mandi to the customer.
    • This can be realised with the support of digital disruption and the latest agriculture reforms.
    • Both these reports heavily rely on digital disruption to improve farmers’ livelihoods, without discussing how much farmers will be prepared to benefit from the emerging business.

    An unconvincing ‘how’

    • Digital divide: The fact is that a majority of small and marginal farmers are not technology-savvy.
    • No capacity building: That most of them are under-educated for capacity building is ignored amidst these ambitious developments.
    • Unrealistic assumptions: The Bain report relies on the general assumption that more investments into the agriculture sector will benefit farmers; ‘but how’ has not been convincingly answered.
    • Overemphasis on technology: Similarly, how the technology fix will help resolve all the issues of Indian agriculture listed at the beginning of the report is unclear in the IDEA concept.
    • Reluctance by farmers: These reports ignore the protest of farmers against the reforms without considering it as a barrier or risk factor resulting in a repealing of these new farm laws.

    Way ahead: Focus on the farmer

    • A data revolution is inevitable in the agriculture sector, given its socio-political complexities.
    • However, we cannot just count on technology fixes and agri-business investments for improving farmers’ livelihoods.
    • There need to be immense efforts to improve the capacities of the farmers in India – at least until the educated young farmers replace the existing under-educated small and medium farmers.
    • This capacity building can be done through a mixed approach through FPOs and other farmers’ associations where technical support is available for farmers.

    Conclusion

    • Considering the size of the agriculture sector of the country this is not going to be an easy task but would need a separate program across the country with considerable investment.

     

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  • Coal Crisis in India

    More than half of the country’s 135 coal-fired power plants are running on fumes – as coal stocks run critically low.  They have fuel stocks of less than four days, government data shows.

    Coal shortage in India

    • In a country where 70% of the electricity is generated using coal, this is a major cause for concern as it threatens to derail India’s post-pandemic economic recovery.
    • Utilities are scrambling to secure coal supplies as inventories hit critical lows after a surge in power demand from industries and sluggish imports due to record global prices push power plants to the brink.

    How did the crisis escalate?

    • As India’s economy picked up after a deadly second wave of Covid-19, demand for power rose sharply.
    • Power consumption in the last two months alone jumped by almost 17%, compared to the same period in 2019.
    • At the same time global coal prices increased by 40% and India’s imports fell to a two-year low.
    • India is the world’s second largest importer of coal despite also being home to the fourth largest coal reserves in the world.
    • Power plants that usually rely on imports are now heavily dependent on Indian coal, adding further pressure to already stretched domestic supplies.

    What is the likely impact?

    • Experts say importing more coal to make up for domestic shortages is not an option at present.
    • India has seen shortages in the past, but what’s unprecedented this time is coal is really expensive now.
    • Businesses at the end of the day pass on these costs to consumers, so there is an inflationary impact – both direct and indirect that could potentially come from this.
    • If the crisis continues, a surge in the cost of electricity will be felt by consumers.
    • Retail inflation is already high as everything from oil to food has become more expensive.

    Other reasons for this crisis

    • In recent years, India’s production has lagged as the country tried to reduce its dependence on coal to meet climate targets.
    • Prices of power-generation fuels are surging globally as electricity demand rebounds with industrial growth, tightening supplies of coal and liquefied natural gas.
    • India is competing against buyers such as China, the world’s largest coal consumer, which is under pressure to ramp up imports amid a severe power crunch.
    • Rising oil, gas, coal and power prices are feeding inflationary pressures worldwide and slowing the economic recovery from the COVID-19 pandemic.

    Challenges posed

    • The desire to cut its reliance on heavily polluting coal burning power plants has been a major challenge for the government in recent years.
    • The question of how India can achieve a balance between meeting demand for electricity from its almost 1.4bn people has to be answered.

    What can the government do?

    • Experts advocate a mix of coal and clean sources of energy as a possible long-term solution.
    • It’s not completely possible to transition and it’s never a good strategy to transition 100% to renewables without a backup.
    • Long term investment in multiple power sources aside a crisis like the current one can be averted with better planning.
    • There is need for closer coordination between Coal India Limited – the largest supplier of coal in the country and other stakeholders.
    • For now, the government is working with state-run enterprises to ramp up production and mining to reduce the gap between supply and demand.

    Way forward

    • This is a global phenomenon, one not specifically restricted to India.
    • It is unclear how long the current situation will last.
    • With the monsoon on its way out and winter approaching, the demand for power usually falls.
    • So, the mismatch between demand and supply may iron out to some extent.

    Try answering this PYQ:

    Consider the following statements:

    1. Coal sector was nationalized by the Government of India under Indira Gandhi.
    2. Now, coal blocks are allocated on lottery basis.
    3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self- sufficient in coal production.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

     

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  • Genetic proof for domestication of sheep in Indian subcontinent

    Researchers at the Central University of Kerala (CUK) have found that domestication of sheep had taken place in the Indian subcontinent, especially in the Indus Valley Civilisation (IVC) regions in the 6th or 7th millennium BC.

    Animal domestication in IVC

    A number of domesticated animal species have been found in excavations at the Harappan cities.

    • The Indian humped cattle (Bos indicus) were most frequently encountered, though whether along with a humpless variety, such as that shown on the seals, is not clearly established.
    • The buffalo (B. bubalis) is less common and may have been wild.
    • Sheep and goats occur, as does the Indian pig (Sus cristatus).
    • The camel is present, as well as the ass (Equus asinus).
    • Bones of domestic fowl are not uncommon; these fowl were domesticated from the indigenous jungle fowl.
    • Finally, the cat and the dog were both evidently domesticated.
    • Present, but not necessarily as a domesticated species, is the elephant.
    • The horse is possibly present but extremely rare and apparently only present in the last stages of the Harappan Period.

    Key findings of the study

    • The study has found genetic evidence that sheep had been domesticated in the region in contrast to the general belief that they were domesticated then in West Asia alone.
    • India ranks second in terms of sheep population, represented by as many as 44 well-described breeds in addition to several nondescript species.
    • It highlights that genetic diversity and phylogeography of Indian sheep breeds remained poorly understood, particularly the south Indian breed.

    How was the classification held?

    • Researchers retrieved the mitochondrial DNA sequences of another 11 breeds for analysis, which further strengthened their study.
    • The researchers analysed these sequences along with published data of domestic and wild sheep from different countries, including India.
    • The haplotype diversity observed was relatively high in Indian sheep, which were classified into the three known major mitochondrial DNA lineages namely A, B, and C.

    Diversity among Indian Sheeps

    • It was found that lineage A was predominant among Indian sheep, whereas lineages B and C were observed at low frequencies.
    • Particularly lineage C was restricted to the breeds of northern and eastern India.
    • The study examined the south Indian breeds, provided strong genetic evidence that the Indian subcontinent was one of the domestication centres of the lineage A sheep.
    • When DNA sequences were compared with other breeds across the world, it was found that the Indian sheep haplotypes were unique and highly diverse.
    • The high genetic diversity and statistical analysis suggest that sheep was domesticated in the country.
    • The wild Sheep, O. vignei blanfordi in Mehrgarh [Pakistan], may be a potential progenitor of domestic sheep lineage.

    Breeds studied

    • Among the south Indian breeds, except for Mandya, all others, notably Bellary, Coimbatore, Hassan, Katchaikatty Black, Nilgri, Ramnad White, and Vembur, were fully encompassed with lineage A.
    • However, Kenguri Kilakarsal, Madras Red, Mecheri, and Tiruchy Black breeds, had very low occurrences of lineage B mitochondria.
    • In contrast, a majority of individuals of Mandya and Sonadi breeds carried a relatively high frequency of lineage B.
    • In terms of the conservation of sheep genetic resources, these two breeds are important with respect to maternal lineages.

    Try answering this PYQ:

    With reference to the difference between the culture of Rigvedic Aryans and Indus Valley people, which of the following statements is/are correct?

    1. Rigvedic Aryans used the coat of mail and helmet in warfare whereas the people of Indus Valley Civilization did not leave any evidence of using them.
    2. Rigvedic Aryans knew gold, silver and copper whereas Indus Valley people knew only copper and iron.
    3. Rigvedic Aryans had domesticated the horse whereas there is no evidence of Indus Valley people having been aware of this animal.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

     

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  • NATO fires Russian Diplomats

    NATO has withdrew the accreditation of eight Russian officials to the military alliance in response to a rise in malign activities by Moscow.

    NATO

    • NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
    • It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
    • Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
    • NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.

    Why was it founded?

    Ans. Communist sweep in Europe post-WWII and rise of Soviet dominance

    • After World War II in 1945, Western Europe was economically exhausted and militarily weak, and newly powerful communist parties had arisen in France and Italy.
    • By contrast, the Soviet Union had emerged from the war with its armies dominating all the states of central and Eastern Europe.
    • By 1948 communists under Moscow’s sponsorship had consolidated their control of the governments of those countries and suppressed all non-communist political activity.
    • What became known as the Iron Curtain, a term popularized by Winston Churchill, had descended over central and Eastern Europe.

    Ideology of NATO

    • The NATO ensures that the security of its European member countries is inseparably linked to that of its North American member countries.
    • It commits the Allies to democracy, individual liberty and the rule of law, as well as to peaceful resolution of disputes.
    • It also provides a unique forum for dialogue and cooperation across the Atlantic.

    The Article 5

    • The heart of NATO is expressed in Article 5, in which the signatory members agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all.

    Why in news now?

    • The relationship between NATO and Russia is at its lowest point since the end of the Cold War.
    • The NATO (rather US) sees their aggressive actions, not least against Ukraine, but also the significant military buildup and violations of important arms control agreements.
    • NATO suspended practical cooperation with Russia in 2014 after it annexed Ukraine’s Crimean Peninsula.

     

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  • [pib] River Ranching Programme

    The Union Minister for Fisheries, Animal Husbandry & Dairying, is set to launch the River Ranching Programme in Uttar Pradesh under the Namami Gange Programme.

    What is River Ranching?

    • River Ranching is a form of aquaculture in which a population of a fish species (such as salmon) is held in captivity for the first stage of their lives.
    • They are then released, and later harvested as adults when they return from the sea to their freshwater birthplace to spawn.

    Objective

    The key objectives of the program are:

    • To sustain and conserve the biodiversity in the river.
    • Facilitate regular stocking of fingerlings of cultivable carps to enhance productivity
    • Increase fish production
    • Enhance income and livelihood opportunities to communities’ dependent on these resources

    Why need such a program?

    • River ranching helps in achieving sustainable fisheries, reducing habitat degradation, conserving biodiversity, maximising social-economic benefits and would also remove factors causing pollution.
    • In this activity, different species of fish are released in the river, which destroy factors that increase the level of nitrogen.
    • These fishes will also aid in maintaining the cleanliness of the river as they feed on organic remnants.

    Where is the scheme being launched?

    • In Uttar Pradesh, about 15 lakh fish fingerlings of native carp species shall be simultaneously released into the river in 12 districts by the department.
    • These districts include Bulandshahr/Hapur, Hardoi, Bijnor, Amroha, Fatehpur, Kanpur, Badayun, Kaushambi, Prayagraj, Mirzapur, Varanasi and Ghazipur.
    • Four other states namely Uttarakhand, Orissa, Tripura and Chhattisgarh will also witness the launching of nationwide River Ranching program.

     

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  • [pib] National Digital Livestock Mission

    The Union Minister of State Fisheries, Animal Husbandry & Dairying unveiled the National Digital Livestock Mission Blueprint.

    National Digital Livestock Mission

    • The NDLM would be a digital platform developed by Dept. of Dairy and Animal Husbandry on the foundation of the existing Information Network for Animal Productivity and Health (INAPH).
    • It aims to create a farmer-centric, technology-enabled ecosystem where the farmers are able to realize better income through livestock activities with the right information.
    • The bedrock of NDLM will be the unique identification of all livestock, which will be the foundation for all the state and national level programmes including domestic and international trade.
    • The farmers will be able to effortlessly access the markets, irrespective of their location or holdings through this digital platform as a wide-range of stake-holders will be connected in this ecosystem.
    • This system will also include robust animal breeding systems, nutrition, disease surveillance, disease control programmes and a traceability mechanism for animals and animal products.

    Why need such mission?

    • The livestock sector has a unique combination of being the backbone of rural livelihood.
    • The growth would have been a lot better if there were concerted efforts to harmonise programmes across the country in order to create an ecosystem that is conducive for growth of the sector.
    • This has been the main idea behind the deployment of NDLM, keeping the welfare of the farmer at the core.

    Back2Basics: National Livestock Mission

    • National Livestock Mission is an initiative of the Ministry of Agriculture and Farmers’ Welfare.
    • The mission, which commenced from 2014-15, has the objective of sustainable development of the livestock sector.
    • NABARD is the subsidy channelising agency for following schemes, under Entrepreneurship Development & Employment Generation (EDEG) component of National Livestock Mission.
    1. Poultry Venture Capital Fund (PVCF)
    2. Integrated Development of Small Ruminants and Rabbit (IDSRR)
    3. Pig Development (PD)
    4. Salvaging and Rearing of Male Buffalo Calves (SRMBC)
    5. Effective Animal Waste Management
    6. Construction of Storage Facility for Feed and Fodder

     

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  • India joins High Ambition Coalition (HAC)

    India has officially joined the High Ambition Coalition for Nature and People, a group of more than 70 countries encouraging the adoption of the global goal to protect 30×30.

    High Ambition Coalition (HAC)

    Aim: To promote an international agreement to protect at least 30 % the of world’s land and ocean by 2030

    • The HAC is an informal group of approximately 61 countries within the UN Framework Convention on Climate Change (UNFCCC).
    • It is committed to advancing progressive proposals on climate ambition.
    • The HAC was founded by the Republic of the Marshall Islands in 2014 with the aim of ensuring the Paris Agreement, adopted in 2015, was as ambitious as possible.
    • The Republic of the Marshall Islands serves as the convener and secretariat of the HAC.
    • The global 30×30 goal is currently a centerpiece of the treaty.

    Members

    • HAC members currently include a mix of countries in the global north and south; European, Latin American, Africa and Asia countries are among the members.
    • India is the first of the BRICS bloc of major emerging economies (Brazil, Russia, India, China and South Africa) to join the HAC.

     

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