💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Subject: Economics

  • Centre raises MSP for Rabi Crops

    Central Idea

    • The Cabinet Committee on Economic Affairs (CCEA) has increased the Minimum Support Prices (MSP) for all Rabi crops for the financial year 2024-25.

    Understanding MSP

    • Policy Framework: MSP is a government policy designed to safeguard farmers’ income. Unlike subsidized grains in the Public Distribution System (PDS), it isn’t an entitlement but a part of administrative decision-making.
    • MSP Commodities: The Centre currently fixes MSPs for 23 agricultural commodities, guided by recommendations from the Commission for Agricultural Costs and Prices (CACP).
    • No Legal Backing: There is currently NO statutory backing for these prices, nor any law mandating their enforcement.

    Fixing MSPs

    • Factors Considered: CACP considers multiple factors when recommending MSP for a commodity, notably the cost of cultivation.
    • Key Determinants: These determinants encompass supply and demand dynamics, domestic and global market prices, parity with other crops, implications for consumers and the environment, and terms of trade between agriculture and non-agriculture sectors.
    • 5 Times Formula: The 2018-19 Budget introduced a “pre-determined principle” where MSPs should be set at 1.5 times the production cost, simplifying CACP’s role to estimating production costs and applying the formula.

    Production Cost Calculation

    • Three Cost Categories: CACP calculates three production cost categories for each crop, at both state and all-India average levels.
    • A2: Encompasses all paid-out costs directly incurred by the farmer, such as seeds, fertilizers, labor, land lease, fuel, and irrigation.
    • A2+FL: Includes A2 and imputes a value for unpaid family labor.
    • C2: A comprehensive cost accounting for rentals and forgone interest on owned land and capital assets in addition to A2+FL.

    Back2Basics:

    Rabi Crops Kharif Crops Zaid Crops
    Growing Season Winter (sown in Oct-Dec) Monsoon (sown in Jun-Jul) Summer (sown in Feb-Apr)
    Harvest Season Spring (harvested in Mar-Apr) Autumn (harvested in Oct-Nov) Early Autumn (harvested in May-Jun)
    Examples Wheat, barley, peas, gram Rice, maize, cotton, soybean Cucumber, watermelon, muskmelon
    Water Requirement Relies mainly on rainfall Relies on monsoon rains Requires irrigation and supplemental water
    Temperature Grows in cooler temperatures Grows in warmer temperatures Grows in hot temperatures
    Crop Rotation Often used in crop rotation Less commonly used in crop rotation Usually not part of crop rotation

  • Copyright Protection for Religious Texts

    copyright

    Central Idea

    • The recent ruling by the Delhi High Court has brought attention to copyright infringement concerning religious texts, particularly the Bhaktivedanta Book Trust’s works on Indian religious philosophy and spiritualism.
    • This landmark case addresses copyright protection for sacred texts and the implications for digital platforms.
    • Let’s explore the details of the case and its broader implications.

    Are Religious Texts Copyright-Protected?

    • Public Domain: Most religious scriptures, such as the Old Testament and New Testament, are in the public domain. Copyright law does not apply to works in the public domain.
    • Exceptions: Modern translations of religious texts, like the New International Version (NIV) of the Bible, may enjoy copyright protection as they represent new creative works by translators.
    • Protections: Additionally, transformative works, like television adaptations of epics like the Ramayana and Mahabharata, are protected.

    Understanding Copyright Law in India

    • Scope of Protection: The Indian Copyright Act of 1957 safeguards “original work,” creative expressions independently created and fixed in a tangible medium.
    • Exclusive Rights: It grants exclusive rights to creators/authors, including the right to use, reproduce, distribute, perform, and display their work.
    • Transformative Works: The Act also protects transformative works, which creatively modify, reinterpret, or build upon existing material to create something distinct.

    Duration of Copyright Protection

    Literary, Dramatic, Musical, Artistic Works Lifetime of the author plus 60 years from the year following the author’s death or last surviving author’s death.
    Cinematographic Films 60 years from the year of publication or creation.
    Sound Recordings 60 years from the year of first publication.
    Anonymous or Pseudonymous Works 60 years from the year of publication, or lifetime of the author plus 60 years if the author’s identity is disclosed during this period.

    Bhaktivedanta Book Trust’s Case

    • Founder’s Works: The trust claimed copyright ownership of its founder’s works, which had simplified religious books and scriptures, making them accessible to the common man.
    • Infringement Allegation: The trust alleged that various websites, mobile apps, and Instagram handles were reproducing a significant number of its copyrighted works almost verbatim on their online platforms without authorization, constituting infringement.

    Delhi High Court’s Ruling

    • Copyright Protection: The court ruled that adaptations of sacred scriptures, including explanations, meanings, interpretations, and audio-visual works, are entitled to copyright protection because they represent original works by authors themselves.
    • Reproduction Clarification: While the reproduction of the actual text of sacred texts, such as the Srimad Bhagavad Gita, is permissible, the court emphasized that copyright protection applies to the original parts of literary works that preach, teach, or explain the scripture.
    • Trust’s Rights: Given that Srila Prabhupada had entrusted the copyrights to be administered by the Bhaktivedanta Book Trust, the court emphasized that the works cannot be reproduced without the trust’s authorization, license, or permission.
    • Preventing Piracy: The court acknowledged that unauthorized reproduction, including shlokas (verses), translations, and interpretations, by defendant entities would result in immense revenue loss for the trust.

    Conclusion

    • The Delhi High Court’s ruling on copyright protection for religious texts has far-reaching implications for safeguarding the originality and rights associated with sacred scriptures.
    • While religious texts themselves may not be copyright-protected, creative adaptations, explanations, and interpretations enjoy legal protection.
    • This decision serves as a precedent for preserving the intellectual property rights of organizations involved in disseminating spiritual knowledge while discouraging unauthorized reproduction and piracy.

  • [pib] Setu Bandhan Scheme

    Central Idea

    • Recently, the Union Minister for Road Transport and Highways announced the approval of Setu Bandhan Scheme for seven bridge projects in Arunachal Pradesh, utilizing funds from the Central Road and Infrastructure Fund (CRIF).

    What is Setu Bandhan Scheme?

    • Setu Bandhan is an initiative under the Ministry of Road Transport and Highways.
    • Its primary aim is to enhance inter-state connectivity, particularly in rural border areas that have been historically underserved by state roads.
    • The scheme aims to replace railway line Level Crossings (LCs) with Road Over Bridges (ROBs) or Rail Under Bridges (RUBs) in various states.

    About Central Road and Infrastructure Fund (CRIF)

    • Established in 2000 through the Central Road Fund Act, 2000.
    • Previously known as the Central Road Fund.
    • It falls under the jurisdiction of the Ministry of Finance.
    • The fund is financed through a cess levied in conjunction with excise duty on petrol and diesel.

  • Centre launches Green Credit Program (GCP)

    Green Credit Program (GCP)

    Central Idea

    • The Centre has introduced a Green Credit Program (GCP) that allows individuals and entities to earn Green Credits, which can be traded on a dedicated exchange.

    What is the Green Credit Program (GCP)?

    • Objective: Aims to establish a competitive, market-based approach encouraging diverse stakeholders to undertake environmental actions.
    • Nodal Agency: Ministry of Environment, Forest, and Climate Change.

    Mechanics of Green Credit

    • Voluntary Participation: Reflects inclusivity, as engagement in the program is entirely voluntary.
    • Entities: The program extends to a diverse range of entities, encompassing individuals, industries, farmer producer organizations (FPOs), urban local bodies (ULBs), gram panchayats, and private sectors.
    • Tradability: Tradable, fostering participation in a proposed domestic market platform.
    • Certificates: Upon approval, applicants receive Green Credit certificates.

    Covered Activities

    • Qualifying Activities: The program includes various activities such as tree plantation, water conservation, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, eco-mark initiatives, sustainable building, and infrastructure development.
    • Registration and Verification: Participants must register their activities on the program’s website, which will undergo verification by a designated agency.

    How are Green Credits computed?

    • Equitable Calculation: Green Credits are determined based on resource equivalence, scalability, scope, size, and other relevant parameters, aiming to achieve desired environmental outcomes.
    • Credit Registry: A dedicated Green Credit Registry will oversee the tracking and management of these credits.
    • Trading Platform: An administrator will establish and maintain a trading platform for the exchange of Green Credits within the domestic market.

    Alignment with Legal Obligations

    • Non-Tradable for Legal Compliance: Green Credits obtained for legal compliance purposes will not be tradable, ensuring adherence to existing laws.
    • Independent from Carbon Credit Scheme: The GCP operates separately from the Carbon Credit Trading Scheme, 2023, established under the Energy Conservation Act, 2001.
    • Additional Climate Benefits: Activities generating Green Credits may also yield climate-related advantages, such as carbon emissions reduction, potentially resulting in the acquisition of carbon credits.

  • Closing the gender pay gap in the workforce

    What’s the news?

    • 2023 Nobel Prize winner in Economics, Goldin’s groundbreaking work highlights that the key to addressing the underrepresentation and underpayment of women lies not in their homes but in the labor market.

    Central idea

    • In the realm of economic orthodoxy, long-held beliefs attributed women’s absence from the labor force to childcare responsibilities and lower education levels, perpetuating a gender pay gap. However, Claudia Goldin, the esteemed 2023 Nobel Prize winner in Economics, challenged these notions and offered a fresh perspective.

    Goldin’ theory

    • Claudia Goldin’s lifetime of research has bestowed a name and a voice upon these women’s challenges.
    • She meticulously traces the evolution of the American economy from agriculture to manufacturing to services, revealing that women were historically excluded from market activities.
    • Only when jobs expanded beyond factories into offices, schools, and hospitals did women gain access to the workforce.
    • Despite their increasing educational achievements, women continued to earn less than their male counterparts.
    • Goldin’s theory attributes this persistent wage gap to the difficulty women face in pursuing jobs with demanding responsibilities.

    A Solution for Gender Equity

    • Reduce Reliance on Heroic Efforts: Goldin suggests moving away from a culture of greedy work that rewards extreme efforts. Instead, organizations should create roles that don’t require superhuman commitments, promoting work-life balance.
    • Promote Moderate Work Hours: Goldin’s solution includes advocating for reasonable work hours, benefiting both genders and avoiding productivity issues associated with excessively long hours.
    • Provide Predictable Schedules: Emphasizing stable work hours helps employees better plan family responsibilities and reduces stress, contributing to gender equity.
    • Institutional Support: Supporting institutions should include educational reforms to ease parental homework burdens and urban planning that reduces commuting, making it easier for both men and women to balance work and personal life.

    The Road Ahead in India

    • Service Sector Opportunities: India’s growing service sector offers the prospect of increased employment opportunities for women. This aligns with Goldin’s observation that women found jobs when economic production shifted from factories to offices, schools, and hospitals.
    • Rising Education Levels: With a continuous increase in women’s educational achievements, there is a growing potential to enhance their participation in the workforce. This trend mirrors Goldin’s emphasis on education as a factor that can boost employability.
    • Declining Fertility Rates: The decreasing fertility rates in India can contribute to freeing up more of women’s time, potentially facilitating higher workforce participation, as Goldin also noted the impact of declining fertility on women’s ability to engage in the labor market.

    Reshaping the environment, as proposed by Claudia Goldin

    • Workplace Restructuring: Reducing the reliance on extreme efforts and creating roles that allow for a better work-life balance, particularly for women.
    • Moderating Work Hours: Promoting reasonable work hours to improve work-life equilibrium, avoiding productivity issues associated with excessively long hours.
    • Ensuring Predictable Schedules: Establishing stable work schedules to facilitate family planning and reduce stress, thus promoting gender equity.
    • Supportive Institutions: Reforms in education and urban planning to ease parental responsibilities and reduce commuting times, enabling both men and women to better balance their professional and personal lives.

    Conclusion

    • To ensure the continued progress of gender convergence in labor market outcomes, we must heed her call for workplace reform and the development of supportive institutions. By doing so, we can pave the way for a more equitable and balanced future for both men and women in the workforce.

  • No restriction on Laptop Imports: Centre

    Central Idea

    • In August, the centre announced its intention to subject laptops, tablets, computers, and related products to a licensing regime starting from November 1.
    • However, it has now clarified that India will not impose licensing requirements on laptop and computer imports but will instead monitor their inbound shipments.

    Lapop Import Restrictions: A Backgrounder

    • Import Restrictions: In August, India imposed import restrictions on various IT hardware products to promote domestic manufacturing and reduce imports, particularly from countries like China.
    • Industry Concerns: The IT hardware industry expressed concerns following the initial licensing announcement.
    • Security and Domestic Manufacturing: The government cited security concerns and the desire to stimulate domestic manufacturing as the reasons for the licensing conditions.

    Import Statistics

    • Import Values: India imports approximately $7-8 billion worth of IT hardware products annually.
    • Recent Trends: Import values for personal computers, including laptops, decreased from $7.37 billion in 2021-22 to $5.33 billion in 2022-23. Imports of certain data processing machines also saw a decline.
    • Production-Linked Incentive Scheme: In May, the government approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay of ₹17,000 crore. A similar scheme for IT hardware was approved in February 2021.

    India’s Dependency on China

    • Critical Dependency: According to a report by the Global Trade Research Initiative (GTRI), India has significant dependency on China for various products, including laptops and mobile phones.
    • Government Initiatives: To reduce this dependency, the government has introduced measures such as the production-linked incentive scheme and increased customs duties on electronic components.

    Conclusion

    • India’s decision to shift from a licensing regime to monitoring for laptop and computer imports aims to balance its goals of reducing import dependency and promoting domestic manufacturing.
    • However, there is a need to ensure smoother transition for businesses and trade.

  • Recent GI tags awarded

    Central Idea

    • Many GI tags were awarded in this month. Let’s take a look:

    GI Tags in News:

    [1] Jaderi Namakatti

    Jaderi Namakatti gi tag

    • Jaderi namakatti are clay sticks that are white in colour, usually available in finger-like shape with a smooth texture.
    • They are used to adorn the foreheads of idols, men and temple elephants.
    • Jaderi is a small village in Tiruvannamalai district of Tamil Nadu.
    • There are around 120 families in Cheyyar taluk whose primary occupation has been making namakatti for more than hundreds of years now.

    [2] Basohli Pashmina

    Basohli Pashmina gi tag

    • Basohli Pashmina is a very old craft from the Kathua district of Jammu and Kashmir. It’s famous because it’s super soft, very fine, and feels incredibly light.
    • Pashmina is a type of material that is hand-spun and known for being incredibly soft, fine, lightweight, and also warm.
    • You can make various things from Pashmina, like shawls for men and women, mufflers, blankets, and even baskets.
    • It comes from a type of mountain goat called Capra hircus. These goats are found on the Changthang Plateau in Tibet and parts of Ladakh.
    • In Ladakh, there are people called the Changpa, who are known for making Pashmina wool. They live on the Changthang plateau in Tibet and are nomadic, which means they move around a lot.

    [3] Marcha Rice

    • Grown in select pockets of six blocks in West Champaran district, Bihar, India. These blocks include Mainatar, Gaunaha, Narkatiaganj, Ramnagar, Lauriya, and Chanpatia.
    • It has received a Geographical Indication (GI) tag, indicating its unique qualities associated with the region where it’s grown.
    • Cultivated by the Marcha Dhan Utpadak Pragatisheel Samuh, a registered organization of paddy cultivators in West Champaran district.
    • Known for its distinct aroma and taste, Marcha Rice is a special indigenous variety of paddy.

    [4] Atreyapuram Pootharekulu

    Atreyapuram Pootharekulu gi tag

    • Atreyapuram Pootharekulu is a traditional sweet originating from Atreyapuram village, situated on the banks of the Godavari River in the Konaseema district of Andhra Pradesh.
    • The name ‘Pootharekulu’ translates to ‘coated sheets,’ although this description may appear somewhat vague.
    • This traditional sweet is known for its extraordinary delicacy and distinct taste.
    • It is created by layering paper-thin sheets of rice flour, which are delicately coated with ghee (clarified butter) and then folded to encase powdered jaggery or sugar dust.
    • Additionally, some variants of Pootharekulu may include finely chopped roasted dry fruits such as pistachios, almonds, and cashews.
    • The preparation of relies on a specific type of rice known as MTU-3626, referred to locally as Bondalu.
    • This rice variety is chosen for its unique taste and its ability to yield a sticky consistency, which is crucial for crafting this sweet.

    Back2Basics: GI Tag

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.

  • Labour force participation

    What’s the news?

    • The issue of employment has been a central topic in economic policy discussions, especially in recent decades, as the correlation between economic growth and job creation has appeared fragile.

    Central idea

    • The COVID-19 pandemic intensified economic disruptions, causing financial distress, surging unemployment, and rural migration. The 2022-23 labor force survey shows rising participation rates and lower unemployment but raises concerns with declining regular employment and a rise in self-employment.

    Increasing Labor Force Participation

    • The national labor force participation rate (15 years and above) has grown from 49.8% in 2017-18 to 57.9% in 2022-23.
    • Both rural and urban areas have witnessed increased participation, with a more significant rise in rural regions.
    • Female participation in rural areas increased from 24.6% in 2017-18 to 41.5% in 2022-23, indicating higher female engagement in the labor force.
    • However, this rise may also reflect economic distress in rural areas, pushing women to seek employment to augment family incomes, including work under MGNREGA.

    Rise in Self-Employment

    • The percentage of self-employed individuals increased from 55.6% in 2020-21 to 57.3% in 2022-23.
    • Concurrently, the share of regular wage/salaried employment declined from 21.1% to 20.9%.
    • The proportion of workers engaged in informal sector enterprises in the non-agricultural sector also rose from 71.4% in 2020-21 to 74.3% in 2022-23.

    Concerns Over Job Quality

    • While unemployment rates have fallen across the board, especially among the youth (age group 15-29), the decline in regular wage/salaried employment and the increase in self-employment raise concerns.
    • These trends indicate that the economy may struggle to create sufficient productive and well-paying job opportunities to absorb the annual influx of millions into the labor force.
    • Inadequate job creation remains the most significant challenge facing policymakers.

    Conclusion

    • The recent labor force survey highlights both positive and concerning trends in India’s labor market. Addressing the challenge of job creation and ensuring that these jobs are productive and remunerative should remain a top priority for policymakers in India’s economic development agenda.

  • Goa’s Cashew Industry receives GI Tag

    cashew

    Central Idea

    • The recent awarding of a Geographical Indication (GI) tag to Goa’s cashew industry has ignited hope and enthusiasm among cashew manufacturers and processors in the state.

    Goa’s Cashew Industry

    • Introduction of Cashew in Goa: Cashew was introduced to Goa in the 16th century by Portuguese colonizers. Initially, it was primarily cultivated for afforestation and soil conservation purposes.
    • Discovery of Edible Value: The true economic value of cashew nuts was discovered during Goa’s freedom movement in the mid-18th century. Goan prisoners exiled to Portuguese territory in Africa (Mozambique) recognized the edible potential of cashew nuts.
    • Growth of Cashew Industry: Cashew production evolved from a cottage industry to a large-scale enterprise, driven by demand, particularly in the USA. The first cashew factory in Goa began operations in 1926, and the first consignment of cashew kernels was exported in 1930.
    • Foreign Trade Contribution: By 1961, the cashew processing industry accounted for about 60% of industrial production in Goa. Cashew nuts, both locally grown and imported, were processed and exported to countries like the United States of America, Japan, Saudi Arabia, and West Germany.

    Understanding the GI Tag

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.

  • New Royalty Rates for Strategic Minerals, Lithium and REEs

    minerals

    Central Idea

    • The Centre has approved royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements (REEs).
    • These changes enable competitive royalty rates for these strategically vital minerals (critical minerals) and open the doors to private sector participation through concession auctions.

    What are Critical Minerals?

    • Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
    • These minerals are used in making mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
    • Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
    • Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.

    Implications of the Amendment

    • Alignment with Global Benchmarks: The amendments, involving specifying new royalty rates, bring India’s royalty rates in line with global standards. This is crucial to attract bidders’ in future mineral auctions.
    • Competitive Royalty Rates: The Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, previously set a 12% royalty rate for unspecified minerals, which was significantly higher than international benchmarks. The revised rates are 3% for lithium and niobium, and 1% for REEs, based on price benchmarks, enhancing the attractiveness of mining in India.
    • Domestic Mining Promotion: Lower royalty rates and commercial exploitation opportunities aim to encourage domestic mining, reduce imports, and stimulate related industries like electric vehicles (EVs) and energy storage solutions.
    • Energy Transition Commitment: Access to critical minerals is integral to India’s commitment to energy transition and achieving net-zero emissions by 2070, aligning with global environmental goals.

    Economic significance of the move

    (A) Lithium

    • Import Dependence: India currently imports all its required lithium. The government’s push for lithium mining extends beyond Jammu & Kashmir to explore lithium extraction from Rajasthan and Gujarat’s brine pools, as well as Odisha and Chhattisgarh’s mica belts.
    • Economic Offensive: This initiative is part of India’s economic strategy to reduce dependency on China for lithium-ion energy storage products, given China’s dominant position in the market.
    • EV Growth: With EVs on the cusp of disruption, securing a lithium supply chain is strategically vital. The global lithium battery market has seen significant growth in recent years.

    (B) Rare Earth Elements

    • Global Supply Challenges: Rare earth elements, primarily sourced from or processed in China, pose challenges in the EV supply chain. Securing supplies can be difficult, and China’s dominance has raised concerns.
    • Usage in Motors: Rare earth elements are crucial in EV motors, particularly permanent magnet motors. Elements like neodymium, terbium, and dysprosium are used in magnets for generating a constant motor flux, enhancing motor efficiency.
    • Environmental Concerns: Mining rare earth elements often involves environmentally damaging open-pit operations, raising environmental and ecological concerns.

    (C) Niobium for Industry

    • Corrosion Resistance: Niobium, known for its resistance to corrosion due to a surface oxide layer, is used in various industries. It strengthens alloys, particularly stainless steel, making them ideal for applications in aerospace, construction, and pipelines.
    • Superconducting Properties: Niobium’s superconducting properties find applications in magnets for particle accelerators and MRI scanners.
    • Global Sources: The main source of niobium is the mineral columbite, found in several countries, including Canada, Brazil, Australia, and Nigeria.

    Conclusion

    • India’s decision to amend mining laws for strategic minerals is a significant step toward aligning with global standards, promoting domestic mining, and securing supplies for emerging industries like EVs and energy storage.
    • It underscores India’s commitment to sustainable energy transition and reduced import dependency while addressing environmental concerns in mining rare earth elements.