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Subject: Economics

  • NABARD to launch ₹1000-crore Blended Fund for Agri-Startups

    What is the news –

    • The National Bank for Agriculture and Rural Development (NABARD) is set to launch a ₹1,000-crore fund to bolster technology-driven agri-startups and rural enterprises.
    • NABARD has already established a ₹750-crore fund, which will be followed by another ₹1,000 crore, to support startups in this regard.

    What are Agri-Startups?

    • Agri-startups are entrepreneurial ventures focused on innovating and revolutionizing various aspects of agriculture and allied sectors.
    • These startups leverage technology, data, and modern farming practices to address challenges in the agricultural value chain and promote sustainable farming practices.
    • They offer a wide range of products and services aimed at improving productivity, efficiency, and profitability for farmers, as well as enhancing food quality and safety for consumers.

    Key areas of innovation in agri-startups include:

    1. Precision Agriculture: Utilizing data-driven technologies such as IoT, drones, and satellite imagery for precision farming, soil health monitoring, crop monitoring, and yield optimization.
    2. Agritech Solutions: Developing innovative technologies and tools for pest and disease management, water management, greenhouse farming, and hydroponics.
    3. Farm Management Software: Providing digital platforms and mobile applications for farm management, crop planning, inventory management, and market intelligence.
    4. Agri-Marketing Platforms: Connecting farmers directly with buyers, retailers, and consumers through online marketplaces, e-commerce platforms, and farm-to-fork initiatives.
    5. Supply Chain Management: Streamlining logistics, transportation, and warehousing operations to reduce post-harvest losses, improve market access, and ensure traceability and transparency in the supply chain.
    6. Food Processing: Developing value-added products, food processing technologies, and packaging solutions to enhance the shelf life, nutritional value, and marketability of agricultural produce.

     About NABARD

     

    • NABARD was established on July 12, 1982, by an Act of Parliament to promote sustainable rural development and agricultural growth in India.
    • It operates as a statutory body under the Reserve Bank of India (RBI) Act, 1934, with its headquarters located in Mumbai, Maharashtra.
    • It was established on the recommendation of the Sivaraman Committee and has its headquarters in Mumbai.
    • Its primary mission is to facilitate credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
    • It is governed by a Board of Directors appointed by the GoI, with (1) representatives from the RBI, (2) central and state governments, and (3) experts in various fields related to rural development and finance.

     

    Functions of NABARD:

     

    1. Refinance Support: NABARD provides refinance facilities to banks and financial institutions for agricultural and rural development activities, including crop loans and rural infrastructure projects.
    2. Direct Lending: It extends direct loans to institutions for specific rural development projects, such as agricultural production, rural infrastructure development, and agri-processing units.
    3. Research and Training: NABARD promotes research and development in agriculture, supports capacity building and training programs for rural stakeholders, and facilitates technology transfer initiatives.
    4. Scheme Implementation: The organization administers government schemes and funds like Rural Infrastructure Development Fund (RIDF), Watershed Development Fund (WDF) to finance rural infrastructure projects and watershed development activities.
    5. Credit Planning: NABARD collaborates with central and state governments, RBI, and other stakeholders to formulate credit policies and plans for agriculture and rural sectors.
    6. Financial Inclusion: It promotes financial inclusion by expanding banking services in rural areas, supporting SHGs, FPOs, and MFIs, and facilitating access to credit for rural communities.
    7. Priority Sector Lending: NABARD plays a crucial role in channelling credit to priority sectors such as agriculture, small-scale industries, and rural infrastructure, in alignment with the Reserve Bank of India’s priority sector lending guidelines.

     

    About the Blended Fund for Agri-Startups

    • In the budget for FY23, plans for a blended capital fund were announced for ‘Sunrise Sectors’ to finance startups for agriculture and rural enterprises.
    • The fund aims to support startups facing challenges in scaling up their operations due to limited access to equity and debt instruments.
    • It also seeks to foster new linkages in the rural ecosystem, both forward and backwards.

    Other Schemes for Agri-Startups in India

     

    1. Agriculture Accelerator Fund (2023): It was announced by Finance Minister in the union budget for 2023-24, as a significant initiative designed to support agritech startups and young entrepreneurs hailing from rural areas.
    2. Innovation and Agri-Entrepreneurship Development Program (2018-19): To increase farmers’ income, GOI started this Program under the umbrella of Rashtriya Krishi Vikas Yojana (2007). Startups receive financial assistance at different stages, with Rs. 5.00 lakh at the idea/pre-seed stage and Rs. 25 lakh at the seed stage.

     

    PYQ:

    Q.Priority Sector Lending by banks in India constitutes the lending to: (2012)

    1. Agriculture
    2. Micro and small enterprises
    3. Weaker sections
    4. All of the above

  • [pib] GRID-INDIA is now a Miniratna Company

    What is the news-

    • Grid Controller of India Limited (GRID-INDIA) reached a significant milestone as it was honored with the prestigious status of Miniratna Category-I Central Public Sector Enterprise (CPSE) by the Ministry of Power.

    About Grid Controller of India Limited (GRID-INDIA)

    • Founding: Established in 2009, GRID-INDIA plays a vital role in ensuring the smooth operation of the Indian Power System.
    • Mandate: GRID-INDIA is tasked with overseeing the seamless transfer of electric power within and across regions, facilitating transnational power exchanges, and ensuring reliability, economy, and sustainability in the power sector.
    • Regional Load Despatch Centres (RLDCs) and NLDC: GRID-INDIA comprises five RLDCs and the National Load Despatch Centre (NLDC), collectively managing the All India synchronous grid.
    • Functions: Managing one of the world’s largest and most intricate power systems, GRID-INDIA handles diverse challenges arising from the integration of power systems, rising energy demands, and the proliferation of Renewable Energy (RE) sources.

    What are Central Public Sector Enterprises (CPSEs)?

    • CPSEs are companies in which the central government holds a majority stake (usually more than 51%).
    • These enterprises operate across various sectors, including manufacturing, infrastructure, energy, telecommunications, and financial services.
    • CPSEs are governed by the Department of Public Enterprises (DPE) under the Ministry of Heavy Industries and Public Enterprises.

    Within the CPSEs, there are further classifications based on their financial performance, operational autonomy, and strategic importance:

    Maharatna Companies Navratna Companies Miniratna Companies
    Categories Single category Single category Two categories (Category-I and Category-II) based on the Autonomy
    Eligibility Criteria Annual turnover of ₹25,000 crore, net worth of ₹15,000 crore, and net profit of ₹5,000 crore over the last three years A composite score of at least 60% based on various parameters such as net profit, net worth, total manpower cost, cost of production, PBDIT (Profit Before Depreciation, Interest, and Taxes) to turnover ratio, and other operational and financial parameters. Satisfactory operational and financial performance, as per government guidelines
    Operational Autonomy High degree of operational autonomy and financial powers Moderate degree of operational autonomy and financial powers Limited operational autonomy and financial powers
    Investment Authority Authority to make strategic investments, undertake mergers and acquisitions, and form joint ventures or collaborations without seeking government approval Authority to undertake investment decisions, execute projects, and form joint ventures or subsidiaries within prescribed limits without seeking government approval Authority to make certain investment decisions, incur capital expenditure and undertake expansion projects within prescribed limits without seeking government approval
    Number of Companies Limited number of companies (currently 10 Maharatna companies) Limited number of companies (currently 14 Navratna companies) Larger number of companies (over 70 Miniratna companies)
    Examples Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), NTPC Limited Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Bharat Petroleum Corporation Limited (BPCL) Container Corporation of India (CONCOR), National Aluminium Company Limited (NALCO), Power Grid Corporation of India Limited (POWERGRID)

     

    PYQ:

    2011: Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

    1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
    2. The Government no longer intends to retain the management control of the CPSEs.

    Which of the statements given above is/ are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

  • In news: Tobacco Board  

    Why in the news?

    • The Tobacco Board has authorised a crop size of 100 million kg for Karnataka during the year 2024-25.

    Tobacco in Indian Economy

     

    • It is a drought tolerant, hardy and short duration crop which can be grown on soils where other crops cannot be cultivated profitably.
    • In India, Tobacco crop is grown in an area of 0.45 M ha (0.27% of the net cultivated area) producing ~ 750 M kg of tobacco leaf.
    • India is the 2nd largest producer and exporter after China and Brazil respectively.
    • The production of flue-cured Virginia (FCV) tobacco is about 300 million kg from an area of 0.20 M ha while 450 M kg non-FCV tobacco is produced from an area of 0.25 M ha.
    • In the global scenario, Indian tobacco accounts for 10% of the area and 9% of the total production.

     About Tobacco Board 

    • The Tobacco Board was constituted as a Statutory Body on 1st January, 1976 under Section (4) of the Tobacco Board Act, 1975.
    • It operates under the Ministry of Commerce and Industry.
    • It is headquartered in Guntur, Andhra Pradesh.

    The primary objective of the Tobacco Board is-

    • To promote the orderly development of the tobacco industry in India, particularly in the states of Andhra Pradesh, Karnataka, and Tamil Nadu, which are the major tobacco-growing regions in the country.

    Key Functions and Responsibilities  

    1. Regulation and Control: The Tobacco Board regulates the production, curing, grading, and marketing of Virginia tobacco, which includes Flue-Cured Virginia (FCV) and Burley tobacco varieties.
    2. Licensing and Registration: It monitors and issues licenses and registrations to tobacco growers, manufacturers, exporters, and dealers involved in various stages of the tobacco supply chain.
    3. Research and Development: It collaborates with agricultural research institutes, universities, and industry stakeholders to introduce new technologies, best practices, and crop varieties to enhance the productivity and profitability of tobacco farming.
    4. Market Promotion: It promotes Indian tobacco products in domestic and international markets through trade fairs, exhibitions, buyer-seller meets, and promotional campaigns.
    5. Price Stabilization: It intervenes in the market to stabilize prices, mitigate price fluctuations, and protect the interests of farmers against adverse market conditions.
    6. Quality Control and Grading: It operates grading centers and quality testing laboratories to assess the quality characteristics of tobacco and facilitate fair trade practices in the industry.

    PYQ:

    Q.With reference to the “Tea Board” in India, consider the following statements:

    1. The Tea Board is a statutory body.
    2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
    3. The Tea Board’s Head Office is situated in Bengaluru.
    4. The Board has overseas offices at Dubai and Moscow.

    Which of the statements given above are correct? (2022)

    1. 1 and 3
    2. 2 and 4
    3. 3 and 4
    4. 1 and 4

     

    Practice MCQ:

    Consider the following statements regarding the cultivation of Tobacco in India:

    1. Tobacco is a drought tolerant, hardy and short duration crop.
    2. India is the 2nd largest producer and exporter after China and Brazil respectively
    3. In the global scenario, Indian tobacco accounts for 10% of the area and 9% of the total production.

    How many of the given statements is/are correct?

    1. One
    2. Two
    3. Three
    4. None

  • Guaranteed MSP is an ethical imperative

    Why in the news? 

    As the upcoming general elections approach, agricultural issues have once again become the focus of attention.

    Context-

      • Farmers from the regions known for the Green Revolution have journeyed to the outskirts of the capital not only to express their concerns but also to influence the topics being discussed in the election campaigns.
    • What is the guarantee on MSP?
      • There are legal provisions for farmers to get the MSP for all 23 crops when they sell them—a guarantee by the government to ensure that prices do not fall below the minimum. 

    Key issues related to MSP in India (Produce and perish trap in India)

    • Inadequate implementation of MSP- Despite annual announcements, the implementation of Minimum Support Price (MSP) for 23 crops across both kharif and rabi seasons still needs to be improved.
      • Only a small fraction, around 6% of farmers (as per The Shanta Kumar Committee, in its 2015 report), particularly those growing paddy and wheat in states like Punjab, actually benefit from MSP.
    • Vicious Cycle of Debt and Suicide– Farmers trapped in a cycle of produce and perish face crippling debt and tragically, suicides. The inability to sell crops at MSP exacerbates financial struggles.
    • Dependency on Intermediaries The MSP procurement system frequently relies on intermediaries like middlemen, commission agents, and officials from Agricultural Produce Market Committees (APMCs). 
      • This setup can pose difficulties for smaller farmers, limiting their access to these channels and resulting in inefficiencies and diminished benefits for them.
    • Inconsistent Implementation Across States- While some states like Maharashtra and Karnataka have made efforts towards ensuring MSP through legislative measures, there are challenges due to a lack of political will and comprehensive strategies.
    • Financial Burden on Government- The government bears a substantial financial burden in procuring and maintaining buffer stocks of MSP-supported crops.
      • This allocation of resources detracts from potential investments in other agricultural or rural development initiatives.
    • Lack of political will- Unable to prevent purchasing of food crops below the MSP.  For example, A few years ago, Maharashtra attempted to amend its Agricultural Produce Market Committee (APMC) Act to prevent the purchase of agricultural produce below MSP, but the effort failed due to a lack of political will and a comprehensive strategy

    What are the measures suggested?

    • Amendment to State APMC Acts or Essential Commodities Act- Minor amendments to these laws could introduce provisions ensuring that transactions of farmers’ produce do not occur below the MSP.
    • Development of Backward and Forward Linkages- Alongside legal recourse to MSP, it is proposed to develop essential backwards and forward linkages. This includes crop planning, market intelligence, and the establishment of post-harvest infrastructure for the storage, transportation, and processing of farm commodities.
    • Enhancing MSP- There’s a suggestion to enhance MSP to provide a 50% profit margin over total cost, which is seen as feasible considering the current margins.
    • Effective Procurement and Distribution- Emphasizing the need for effective procurement and distribution mechanisms as envisioned under the National Food Security Act, 2013, to ensure MSP and address hunger and malnutrition.
    • Scheme ensure MSP- Recognizing the potential of schemes like PM-AASHA, which comprises price support, price deficiency payment, and incentives to private traders to ensure MSP, although it’s noted that such schemes have been sidelined in policy circles.
    • Reducing Intermediaries’ Share– Establishing a legally binding MSP may reduce the share of intermediaries, leading to resistance from them.
      • However, this reduction could lead to farmers receiving a higher percentage of the price paid by consumers.
    • Addressing Free Market Dogma- Critiquing the adherence to free market ideology and advocating for government intervention, particularly in ensuring a legally binding MSP, to address the ongoing crisis in farmer incomes.

    Conclusion: Inadequate MSP implementation leads to a vicious cycle of debt and dependence on intermediaries. Solutions include legal guarantees, better procurement, reducing intermediary influence, and challenging free market ideologies to ensure fair compensation for farmers.

  • [pib] International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE)

    Why in the news-

    • The 41st Steering Committee Meeting of the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) is being convened in New Delhi.
    • The IPHE Steering Committee Meetings held biannually serve as a crucial platform for fostering international collaboration and coordination among member countries, stakeholders, and decision-makers.

    What is a Fuel Cell?

     

    • A fuel cell is an electrochemical cell that converts the chemical energy into electricity of a fuel and an oxidizing agent.
    • It generates electrical energy from fuel through an electrochemical reaction, offering high efficiency and zero emissions.
    • They are an innovative technology poised to revolutionize electricity generation, often referred to as the “battery of the future“.
    • Fuel cells provide high efficiency, low emissions, and can be used in various applications.
    • Note: Any electrochemical cell generates DC (Direct Current) output.

    Working of a Hydrogen Fuel Cell

    • Hydrogen fuel cells operate on the principle of electrochemical reactions.
    • Hydrogen gas (H2) is fed into the anode (negative electrode) of the fuel cell, while oxygen (usually from the air) is fed into the cathode (positive electrode).
    • At the anode, hydrogen molecules are split into protons (H+) and electrons (e-).
    • The protons travel through an electrolyte to the cathode, while the electrons flow through an external circuit, generating electricity.
    • At the cathode, oxygen molecules react with the protons and electrons to form water (H2O), which is the only byproduct of the process.

    About IPHE

    • The IPHE was established in 2003 as an international inter-governmental partnership led by the US.
    • It aims to accelerate progress in hydrogen and fuel cell technologies.
    • IPHE comprises 21 member countries and the European Commission as a non-voting member.
    • Member countries include major economies such as the United States, Japan, Germany, China, South Korea, and Canada, among others including India.
    • Additionally, the United Kingdom, Russia, and Singapore have also been mentioned in various contexts within the provided sources but are NOT explicitly listed as members of IPHE.

    Objectives of the IPHE

    • Faster Transition: IPHE aims to facilitate and accelerate the transition to clean and efficient energy and mobility systems using hydrogen and fuel cell technologies across different applications and sectors.
    • Information Sharing Platform: The partnership provides a platform for sharing information on member country initiatives, policies, technology status, safety, regulations, codes, standards, and outreach efforts.
    • Advancing Clean Hydrogen Technologies: IPHE promotes a sustainable future by highlighting the versatility of hydrogen in various industries and its role in decarbonizing energy systems.

    Key Initiatives: H2-DEIA Platform

    • In 2023, IPHE announced the launch of the H2-DEIA platform in partnership with the Hydrogen Council.
    • It is dedicated to advancing diversity, equity, inclusion, and accessibility (DEIA) within the hydrogen and fuel cell economy.
    • It aims to foster a diverse workforce, share best practices, and support workforce development in the hydrogen sector.

    PYQ:

    Q.With reference to ‘Fuel Cells’ in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements:

    1. If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products.
    2. Fuel cells can be used for powering buildings and not for small devices like laptop computers.
    3. Fuel cells produce electricity in the form of Alternating Current (AC).

    Which of the statements given above is/are correct? (CSP 2015)

    1. 1 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3

     

    Practice MCQ:

    Regarding the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), consider the following statements:

    1. IPHE is an international inter-governmental partnership based on the auspices of the United Nations.
    2. India is a member of IPHE.

    Which of the given statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2

  • Passing Off under Trademark Rules

    Why in the news?

    • A lady in New Delhi successfully obtained trademark for her Momos brand from New Delhi High Court, after a similar trademark infringed upon her rights and reputation.
    • The lady’s legal action invoked ‘passing off’ provisions, seeking cancellation of the infringers’ trademark under relevant sections of the Trademarks Act.

    What are Trademarks?

    • A trademark is a symbol, design, word, or phrase that is identified with a business. Registering a trademark allows its owner to claim “exclusive rights” to its usage.
    • The Trademarks Act of 1999 governs the regime of trademarks and their registration in India.
    • It guarantees protection for trademarks registered with the Controller General of Patents, Designs, and Trademarks, also known as the trademark registry.
    • According to Section 25 of the 1999 Act, once registered, a trademark is valid for 10 years and can be renewed by the owner periodically.

    Concept of ‘Passing Off’

    • ‘Passing off’ entails deceptive practices where one brand attempts to profit from the reputation of another through misrepresentation.
    • In Cadila Healthcare Limited vs. Cadila Pharmaceuticals Limited (2001), the Supreme Court defined passing-off as a form of unfair trade competition, where one brand seeks to profit from the established reputation of another through deceptive means.
    • Infringed parties can seek injunctions, damages, or accounts against the infringing entity to mitigate the damages caused.

    Application in the Present Case: Grounds for Trademark Refusal

    • Legal Provisions: Sections 11(1), 11(2), 11(3)(a), and 47 of the Trademarks Act outline grounds for refusal to register trademarks and provisions for removal from the register.
    • Likelihood of Confusion: Trademarks resembling earlier trademarks, leading to public confusion, are ineligible for registration under Section 11(1).
    • Protection of Distinctive Marks: Section 11(2) prohibits registration of marks that take unfair advantage of or harm the reputation of well-known trademarks.
    • Non-Compliance and Non-Usage: Section 47 allows removal of trademarks from the register for non-compliance or non-use, subject to aggrieved parties’ applications.

    Back2Basics: Trademarks vs. Patents

    Trademark Patent
    Purpose Identify and distinguish goods or services Protect new and inventive products or processes
    Laws and Provisions Trademarks Act, 1999 Patents Act, 1970
    Subject Matter Signs like logos, brand names, slogans, packaging Inventions including products, processes, methods
    Duration of Protection 10 years.

    Indefinite with periodic renewal

    		 Typically 20 years from the filing date
    Registration Process File application with Trademarks Registry (i.e. Controller General of Patents) File application with Indian Patent Office
    Rights Granted Exclusive use of the trademark in connection with goods or services Exclusive rights to exploit the invention commercially

     

    PYQ:

    Consider the following statements:

    1. According to the Indian Patents Act, a biological process to create a seed can be patented in India.
    2. In India, there is no Intellectual Property Appellate Board.
    3. Plant varieties are not eligible to be patented in India.

    Which of the statements given above is/are correct?

    1. 1 and 3 only
    2. 2 and 3 only
    3. 3 only
    4. 1, 2 and 3

     

    Practice MCQ:

    With reference to Trademarks in India, consider the following statements:

    1. Trademark can be a symbol, design, word or even a phrase.
    2. It allows its owner to claim “exclusive rights” to its usage
    3. It is valid for 5 years.

    How many of the given statements is/are correct?

    1. One
    2. Two
    3. Three
    4. None

  • Foot and Mouth Diseases in Cattles

    fmd

    Why in the news

    • The foot-and-mouth disease (FMD) has affected around many milch cattle in Uttar Pradesh.

    What is Foot-and-Mouth Disease (FMD)?

    • FMD is a highly contagious viral disease of livestock that has a significant economic impact.
    • The disease affects all cattle, swine, sheep, goats, and other cloven-hoofed ruminants.
    • Intensively reared animals are more susceptible to the disease than traditional breeds.
    • It does not affect horses, dogs, or cats.

    How does it spread?

    • It is a Transboundary Animal Disease (TAD) that deeply affects the production of livestock and disrupts regional and international trade in animals and animal products.
    • It is caused by is an ‘aphthovirus’ of the family Picornaviridae.
    • There are 7 strains (A, O, C, SAT1, SAT2, SAT3, and Asia1) which are endemic in different countries worldwide.
    • Immunity to one type does not protect an animal against other types or subtypes.

    Implications of FMD

    • FMD is characterized by fever and blister-like sores on the tongue and lips, in the mouth, on the teats, and between the hooves.
    • The disease is rarely fatal in adult animals, but there is often high mortality in young animals.
    • The disease causes severe production losses, and while the majority of affected animals recover, the disease often leaves them weakened and debilitated.

    Policy moves to prevent FMD

    • FMD Mukt Bharat Abhiyan (2016-17): Launched under Rashtriya Krishi Vikas Yojana (RKVY) during, it is a program to cover all the states which were not covered under the six-monthly vaccination scheme.
    • National Animal Disease Control Programme (2019): It aims to control of Foot & Mouth Disease and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population for FMD and 100% bovine female calves of 4-8 months of age for brucellosis.

    PYQ:

    Q. Livestock rearing has a big potential for providing non- farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India. (2015)

    Practice MCQ:

    With reference to the National Animal Disease Control Programme, consider the following statements:

    1. It aims to control of Foot & Mouth Disease (FMD) and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population.
    2. For brucellosis it would vaccinate 100% bovine calves of all age.

    Which of the given statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2

  • Free trade has two faces and the one offering harmony must prevail

    Why in the News?

    • Recently, the discussion acknowledged free trade’s nuanced and multifaceted nature, highlighting its potential benefits for peace and economic development while recognizing historical and contemporary challenges in promoting equitable outcomes.

    Evolution of Free Trade ideology:

    • 19th Century Political Reformers and Free Trade:  Free trade was the rallying cry of 19th-century political reformers (Particularly Adam Smith who was inspired by Thomas Hobbes), who saw it as a vehicle for defeating despotism, ending wars, and reducing crushing inequalities in wealth.
    • The era’s economic cosmopolitanism encapsulated progressive causes such as anti-militarism, anti-slavery, and anti-imperialism.
    • US Populists and Opposition to Tariffs: US populists in the late 19th century staunchly opposed the gold standard but were also against import tariffs, which they thought benefited big business and harmed ordinary people.
    • They pushed to replace tariffs with a more equitable progressive income tax.
    • Socialists’ View on Free Trade in the Early 20th Century: Then, during the early part of the 20th century, many socialists viewed free trade, supported by supranational regulation, as the antidote to militarism, wealth gaps and monopolies.
    • Liberal Reformers’ Perspective on Protectionism: The 19th-century liberals and reformers were free traders because they thought protectionism served retrograde interests, including landed aristocrats, business monopolies and warmongers.
    • They believed economic nationalism went hand in hand with imperialism and aggression.
    • Historian Marc-William Palen cites a 1919 essay by the economist Joseph Schumpeter, who depicted imperialism as a “monopolistic symptom of atavistic militarism and protectionism—an ailment that only democratic free-trade forces could cure.”

    Perception and misconceptions of Free trade:

    • Controversial Term-Free trade has been controversial in economics, with many people arguing that it contributes to rising inequality.
    • However, there is a grain of truth in the anti-trade stance, as growing trade did contribute to rising inequality and the erosion of the middle class in the US and other advanced economies in recent decades.
    • Blind Spot of Globalization – If free trade got a bad name,  globalisation’s boosters ignored its downsides or acted as if nothing could be done about them.
    • This blind spot empowered political leaders like Donald Trump to weaponize trade and demonize racial and ethnic minorities, immigrants, and economic rivals.
    • Diverse Opposition: Antipathy to trade is not limited to right-wing populists but also includes radical leftists, climate activists, food safety advocates, human-rights campaigners, labor unions, consumer advocates, and anti-corporate groups.
    • US President Joe Biden has distanced himself from free trade, believing that building a secure, green, equitable, and resilient US economy must take precedence over hyper-globalization.
    • Obstacle to Social Justice:  All progressives believe that free trade stands in the way of social justice.

    Instrumentalisation of Trade:

    1) Instrumentalized for Authoritarian end:

    • Under American Revolution: A particularly egregious example is Antebellum America, where free trade entrenched slavery.
    • During the drafting of the US Constitution in 1787, America’s slave-owning southerners ensured that the text would prohibit the taxation of exports. They understood that free trade would ensure that plantation agriculture remained profitable and safeguard the slavery system on which it was based.
    • When the North defeated the South in the US Civil War, slavery was abolished, and free trade was replaced with protectionism, which suited Northern business interests better.
    • Under British imperialism: After the repeal of the Corn Laws in 1846, the British government nominally abandoned protectionism and led Europe to sign free-trade agreements.

    2) Instrumentalized for militaristic ends:

    • In Africa, the Middle East, and Asia, free trade was imposed through the barrel of a gun whenever the British encountered weak potentates ruling over valuable commodities and markets.
    • The British fought the infamous Opium Wars of the mid-19th century to force Chinese rulers to open their markets to British and other Western goods so that Western countries, in turn, could buy China’s tea, silk, and porcelain without draining their gold.
    • The opium was grown in India; a British monopoly forced farmers to work under horrendous conditions that left long-term scars.
    • Free trade served repression and war, and vice versa.

    Post-World War II trade regime:

    • The American architects of the International Trade Organization followed in the footsteps of Cordell Hull—President Franklin D. Roosevelt’s secretary of state—believing they were pursuing world peace through free trade.
    • Hull was an economic cosmopolitan and a supporter of the 19th-century radical free-trade advocate Richard Cobden.
    • The post-war order was meant to be a system of global rules that eliminated bilateralism and imperial privileges.
    • While the US Congress ultimately failed to ratify the ITO, some of its key principles—including multilateralism and non-discrimination—survived in the General Agreement on Tariffs and Trade (GATT), the precursor to the World Trade Organization (WTO) of today.
    • Under GATT, commercial diplomacy replaced wars, and many non-Western countries—like Japan, South Korea, Taiwan and China—expanded their economies rapidly by leveraging global markets.

    What are the present challenges to the Trade regime?

    • Rise of Corporate Influence: Big corporations and multinational companies gained substantial power during this period, influencing trade negotiations to serve their interests.
    • Neglect of Important Issues: Environmental concerns, public health, human rights, economic security, and domestic equity were overlooked as trade negotiations prioritized corporate interests.
    • Departure from Original Vision: Trade deviated from the original vision of figures like Cobden and Hull, who likely envisioned it as a force for peace and prosperity, instead becoming a source of conflict.
    • Shift in Trade Dynamics: The dominance of corporate influence shifted the focus of international trade away from broader societal welfare towards maximizing profits and corporate interests

    Conclusion:

    The lesson of history is that turning trade into a positive force requires democratizing it. This means that trade should work for the benefit of the broader public interest, not just for a select few. This is an important lesson to remember as the reconstruction of the world trade regime would occur in the years ahead.

     

    Mains PYQ:

    Q. What are the key areas of reform if the WTO has to survive in the present context of the ‘Trade War’, especially keeping in mind the interest of India? (UPSC 2018)

  • The long, bumpy road from ‘drone didis’ to ‘lakhpati didis’

    Why in the news? 

    Efforts of fertilizer companies in supporting a Central government program aimed at training women to operate drones for spraying pesticides.

    Context-

    • This initiative represents a broader trend of encouraging women’s entrepreneurship in India and empowering them to participate in traditionally male-dominated sectors such as agriculture and technology.
    • The involvement of fertilizer companies in funding and facilitating this program underscores the importance of public-private partnerships in driving social and economic development initiatives. 

    Scheme Details-

    Under the Namo Drone Didi scheme, 15,000 women-led Self-Help Groups (SHGs) will receive agricultural drones to assist in crucial tasks such as crop monitoring, fertiliser spraying, and seed sowing.

    Costs to companies-

    • Financial Commitment by Fertilizer Companies: Fertilizer companies such as Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Coromandel International Limited (CIL) are shouldering significant costs for the “drone didi” program.
    • IFFCO is investing ₹42 crore to support the training and equipment for 300 drone didis, while CIL is backing another 200.
    • Expense Breakdown: The approximate cost per woman participating in the program is ₹14 lakh. This covers expenses like the drone, four battery sets, a generator, and an electric autorickshaw for transportation.
    • IFFCO has categorized this expenditure as “benefits to farmers” in its financial records.
    • Contribution of Other Companies: Several additional fertilizer companies, including Krishak Bharati Cooperative (KRIBHCO), Indian Potash Limited (IPL), Matix, Indorama India Private Limited, Brahmaputra Valley Fertilizer Corporation Limited, and National Fertilizers Limited, are collectively providing an extra 500 drones.
    • Funding Arrangement: The Ministry of Agriculture and Farmers Welfare has agreed to provide financial assistance of up to ₹8 lakh for each set of equipment. The remaining ₹2 lakh is to be sourced by the participating Self-Help Groups (SHGs).

    Farmer trials-

    • Online Portal Enrollment: Haryana’s Agriculture Department, along with fertilizer companies, introduced online enrollment via the Meri Fasal Mera Byora portal to encourage farmers to apply for crop spraying through drones.
    • Subsidized Nano Urea Bottle: Farmers are offered a 1-litre nano urea bottle at ₹100, discounted from the market price of ₹225. This nano urea, when mixed with water, serves one acre.
    • Manual vs. Drone Spraying: Farmers weigh the costs of the manual application, which include subsidized granular urea and labor costs, against the higher charges of drone didis.
    • Viability for Small Landholders: Small landholders express concerns about the affordability and practicality of drone services due to limited financial resources and smaller land holdings.
    • Usefulness of Drones: Drones are seen as more cost-effective for larger plantations like coffee, tea, or sugarcane, rather than smaller-scale agricultural operations.
    • Financial Constraints: Farmers highlight financial constraints, including the inability to afford necessities like housing, education, and farm equipment, which diminishes the feasibility of investing in drone technology.

    The women’s challenges-

    • Fuel Costs:  significant daily expenses (₹500 to ₹600) on fuel to run the generator required to charge the battery sets for the drone, raising concerns about the economic feasibility of the job in the long run.
    • Battery Set Limitations: Each day, exhausts one charged battery set after covering three acres with the drone. This necessitates simultaneous charging of another set in her electric vehicle (EV) to continue her work, resulting in additional time and fuel costs.
    • Economic Viability: Despite the potential earnings mentioned on paper, there are doubts about the economic viability of the job due to high fuel costs, the need for additional assistance, and uncertainties regarding the longevity of the scheme’s benefits
    • Safety Concerns and Need for Assistance: There is safety concerns while operating the drone and the necessity of having an assistant to drive the electric autorickshaw and assist with unloading and handling the heavy drone equipment.
    • Lack of Provision for Helpers: There is no provision for hiring assistants or helpers in the scheme, leading to additional expenses

    Limitation of this scheme- 

    • Current Urea Usage and Subsidy: India uses 3.5 lakh metric tonnes (MT) of granular urea annually, with a significant portion subsidized by the government to make it affordable for farmers. Liquid nano urea, an alternative, is produced in limited quantities.
    • Government’s Vision for Nano Urea Production: The government aims to increase the production capacity of liquid nano urea to reduce dependence on expensive imported granular urea. The goal is to produce 48.5 crore bottles annually by 2026-27.
    • Limitations of Nano Urea: While liquid nano urea can supplement traditional granular urea, it cannot entirely replace it due to specific requirements in different stages of crop growth.
    • Ownership and Earnings Concerns: There are uncertainties regarding the ownership of drones and the distribution of earnings from drone operations among individuals, Self-Help Groups (SHGs), village organizations (VOs), or cluster-level federations (CLFs).
    • Need for Clarity and Coordination: Questions are raised about the lack of clarity on ownership, earnings distribution, and coordination among stakeholders involved in drone operations.
    • Challenges with Previous Proposals: Issues regarding the implementation of previous drone-related schemes, such as the procurement of drones under Krishi Vigyan Kendras (KVKs), and concerns about competition from individual farmers purchasing their drones are highlighted.

    To overcome the challenges outlined regarding drone operations and nano urea production, several measures can be considered:

    • Clarity in Ownership and Earnings Distribution: Establish clear guidelines and agreements on drone ownership and revenue sharing among individuals, SHGs, VOs, and CLFs. Ensure transparency in decision-making processes and consult all stakeholders involved.
    • Enhanced Coordination: Facilitate better coordination among government agencies, agricultural organizations, and drone operators to streamline operations, address concerns, and ensure effective implementation of schemes. Regular meetings, feedback mechanisms, and communication channels can aid in coordination efforts.
    • Capacity Building: Provide training and capacity-building programs for drone operators, farmers, and other stakeholders to enhance their skills in drone operation, maintenance, and data interpretation. This can improve the efficiency and effectiveness of drone-based agricultural activities.
    • Promotion of Nano Urea: Invest in research and development to improve the efficacy and availability of liquid nano urea. Conduct awareness campaigns to educate farmers about the benefits and proper usage of nano urea, emphasizing its role as a supplement to traditional fertilizers.
    • Policy Reforms: Review existing policies related to drone operations, urea subsidy, and agricultural initiatives to address loopholes and inconsistencies. Introduce new policies or amendments to support the expansion of nano urea production and drone technology adoption in agriculture.
    • Collaborative Partnerships: Foster partnerships between government agencies, private companies, research institutions, and farmer groups to leverage expertise, resources, and innovation in addressing challenges related to drone operations and urea production.
    • Monitoring and Evaluation: Implement robust monitoring and evaluation mechanisms to assess the impact of drone-based agricultural initiatives and nano urea production efforts. Collect data on key performance indicators and stakeholders’ feedback to identify areas for improvement and make informed decisions.

    Conclusion-

    The initiative to train women as “drone didis” for agricultural tasks faces challenges of economic viability, ownership clarity, and coordination. Solutions include clear guidelines, capacity building, policy reforms, and collaborative partnerships to ensure sustainable implementation and overcome limitations in nano urea production.

    Mains PYQ-

    Q- The Self Help Group (SHG) Bank Linkage Program (SBLP), which is India’s own innovation , has proved to be one of the most effective poverty alleviation and women empowerment programme. Elucidate.(UPSC IAS/2015)

  • Railways plans to develop multi-modal transport hubs

    Why in the news? 

    • The Indian Railways will create mega railway terminals with multi-modal connectivity in aspirational cities with a population of more than 10 lakh across the country.

    About the ‘Viksit Bharat’ Initiative – 

    • The program is part of the infrastructure being developed for Prime Minister Narendra Modi’s ‘Viksit Bharat’ initiative
    • Viksit Bharat 2047 is the vision to transform India into a developed nation by 2047, the 100th year of independence.
    • This vision encompasses various facets of development, such as economic growth, environmental sustainability, social progress, and good governance, to make India a developed nation by 2047.

    Key Provisions as per Railways Plans-

    • Inclusivity and Expansion: The initiative aims to be inclusive by considering inputs from stakeholders and has a vision for expansion beyond its initial parameters to cater to the needs of densely populated areas.
      • The Railway Ministry is actively working on improving the passenger experience in a mission mode, indicating a focused and accelerated effort in this regard.
      • Efforts are being made to improve the cleanliness of coaches and maintain proper amenities on railway premises to enhance the overall travel experience for passengers.
    • Zero Tolerance Policy: The Ministry has issued a warning that any laxity on the part of senior officers will not be tolerated, emphasizing the importance of accountability and responsibility in ensuring passenger satisfaction.
    • Quality check and Monitoring: Principal Chief Mechanical Engineers (PCMEs) of Zonal Railways have been instructed to closely monitor and ensure sustained housekeeping and maintenance activities, indicating a hands-on approach to implementing these improvements.

    Implementing the initiatives outlined could face several challenges:

    • Resource Constraints: Adequate funding, manpower, and infrastructure might be lacking, especially for initiatives that require significant investment in upgrading facilities and maintaining cleanliness.
    • Resistance to Change: Resistance from existing systems, bureaucracy, and resistance to change among stakeholders could impede the implementation of new initiatives.
    • Coordination Issues: Effective coordination among various departments and agencies involved in railway operations may be challenging, leading to delays or inefficiencies in implementation.
    • Technical Challenges: Addressing technical issues related to rolling stock maintenance, cleanliness, and passenger amenities may require specialized expertise and resources.
    • Operational challenges: The vast scale of railway operations across the country presents logistical challenges in ensuring uniform implementation of initiatives and maintaining standards consistently.
    • Training and Capacity Building: Providing adequate training and capacity building for staff involved in implementing and maintaining the initiatives may be necessary but could also be challenging to execute effectively.

    To address the challenges mentioned, several measures can be taken:

    • Resource Mobilization: Explore alternative sources of funding such as public-private partnerships (PPPs), seek investment from international organizations, and allocate budgetary resources efficiently.
    • Capacity Building: Invest in training programs, workshops, and skill development initiatives to enhance the capabilities of staff involved in implementing and maintaining the initiatives.
    • Technology Adoption: Embrace technological solutions such as automated maintenance systems, real-time monitoring tools, and digital platforms to improve efficiency, accuracy, and transparency in operations.
    • Stakeholder Engagement and Communication: Conduct extensive stakeholder consultations to garner support for initiatives, communicate the benefits clearly, and create awareness about the need for change.
      • Simplify bureaucratic procedures, delegate decision-making authority where appropriate, and establish clear accountability mechanisms to facilitate faster implementation.

    Conclusion

    • Indian Railways’ mega terminals aim to transform connectivity in aspirational cities. Challenges like resource constraints and resistance necessitate measures like stakeholder engagement, technology adoption, and streamlined processes for successful implementation.