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Type: DOMR

  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    NITI Aayog’s Draft National Policy on Migrant Workers

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Migration pattern in India

    Mains level: Welfare of the migrant workers

    Spurred by the exodus of 10 million migrants from big cities during the Covid-19 lockdown, the NITI Aayog has prepared a draft national migrant labour policy.

    Highlights of the Policy

    • The draft describes two approaches to policy design:
    1. To focus on cash transfers, special quotas, and reservations
    2. To enhance the agency and capability of the community and thereby remove aspects that come in the way of an individual’s own natural ability to thrive

    A rights-based approach

    • The policy rejects a handout approach, opting instead for a rights-based framework.
    • It seeks to remove restrictions on the true agency and potential of the migrant workers.
    • The goal a/c to the document should not be to provide temporary or permanent economic or social aids”, which is “a rather limited approach”.
    • Migration, the draft says, should be acknowledged as an integral part of the development and government policies should not hinder but…seek to facilitate internal migration.

    Issues with existing law

    • The 2017 report argued that specific protection legislation for migrant workers was unnecessary.
    • Migrant workers aren’t yet integrated with all workers as part of an overarching framework that covers regular and contractual work.
    • The report discussed the limitations of The Inter-State Migrant Workers Act, 1979, which was designed to protect labourers from exploitation by contractors by safeguarding their right to non-discriminatory wages.
    • It mentions that the Ministry of Labour and Employment should amend the 1979 Act for “effective utilization to protect migrants”.

    Restructuring the institutions

    The NITI draft lays down institutional mechanisms to coordinate between Ministries, states, and local departments to implement programmes for migrants.

    • Nodal agency: It identifies the Ministry of Labour and Employment as the nodal Ministry for implementation of policies, and asks it to create a special unit to help to converge the activities of other Ministries.
    • Resources centre: This unit would manage migration resource centres in high migration zones, a national labour Helpline, links of worker households to government schemes, and inter-state migration management bodies.
    • Migration corridors: On the inter-state migration management bodies, it says that labour departments of source and destination states along major migration corridors, should work together through the migrant worker cells.
    • Labour officers from source states can be deputed to destinations – e.g., Bihar’s experiment to have a joint labour commissioner at Bihar Bhavan in New Delhi.
    • Role for Panchayats: Alongside the long-term goal, policies should promote the role of panchayats to aid migrant workers and integrate urban and rural policies to improve the conditions of migration.
    • Migration management: Panchayats should maintain a database of migrant workers, issue identity cards and passbooks, and provide “migration management and governance” through training, placement, and social-security benefit assurance, the draft says.

    Ways to stem migration

    • Even as it underlines the key role of migration in development, the draft recommends steps to stem migration.
    • The draft asks source states to raise minimum wages to bring a major shift in the local livelihood of tribal that may result in stemming migration to some extent.
    • The absence of community building organisations (CBO) and administrative staff in the source states have hindered access to development programmes, pushing tribals towards migration, the draft says.
    • The “long term plan” for CBOs and panchayats should be to “alleviate distress migration policy initiatives” by aiming “for a more pro-poor development strategy in the sending areas.

    The importance of data

    • The draft calls for a central database to help employers “fill the gap between demand and supply” and ensures “maximum benefit of social welfare schemes”.
    • It asks the Ministries and the Census office to be consistent with the definitions of migrants and subpopulations, capture seasonal and circular migrants, and incorporate migrant-specific variables in existing surveys.
    • Both documents see limited merit in Census data that comes only once a decade.
    • It asked the National Sample Survey Office to include questions related to migration in the periodic labour force survey and to carry out a separate survey on migration.

    Preventing exploitation

    • The policy draft describes a lack of administrative capacity to handle issues of exploitation.
    • State labour departments have little engagement with migration issues, and are in “halting human trafficking mode”, the draft says.
    • The local administration, given the usual constraints of manpower, is not in a position to monitor.
    • This has become the breeding ground for middlemen to thrive on the situation and entrap migrants which leads to potential exploitation and trafficking.

    Specific recommendations

    • The draft asks the various ministries to use Tribal Affairs migration data to help create migration resource centres in high migration zones.
    • It asks the Ministry of Skill Development and Entrepreneurship to focus on skill-building at these centres.
    • The Ministry of Education should take measures under the Right to Education Act to mainstream migrant children’s education, to map migrant children, and to provide local-language teachers in migrant destinations.
    • The Ministry of Housing and Urban Affairs should address issues of night shelters, short-stay homes, and seasonal accommodation for migrants in cities.
    • The National Legal Services Authority (NALSA) and Ministry of Labour should set up grievance handling cells and fast track legal responses for trafficking, minimum wage violations, and workplace abuses etc.
  • Banking Sector Reforms

    Tighter regulatory framework for NBFCs

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NBFCs and their regulations

    Mains level: Not Much

    The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent the recurrence of any systemic risk to the country’s financial system.

    Try this PYQ:

    Which of the following can be said to be essentially the parts of Inclusive Governance?

    1. Permitting the Non-Banking Financial Companies to do banking
    2. Establishing effective District Planning Committees in all the districts
    3. Increasing government spending on public health
    4. Strengthening the Mid-day Meal Scheme

    Select the correct answer using the codes given below:

    (a) 1 and 2 only

    (b) 3 and 4 only

    (c) 2, 3 and 4 only

    (d) 1, 2, 3 and 4

    What are NBFCs?

    • Nonbank financial companies (NBFCs) are financial institutions that offer various banking services but do not have a banking license.
    • An NBFC in India is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by a government or local authority, or other marketable securities.
    • A non-banking institution that is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments is also an NBFC.

    What is the difference between banks & NBFCs?

    NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:

    • NBFC cannot accept demand deposits
    • NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
    • The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks

    What are the new RBI regulations?

    • The regulatory and supervisory framework of NBFCs will be based on a four-layered structure — the base layer (NBFC-BL), middle layer (NBFC-ML), the upper layer (NBFC-UL), and the top layer.
    • If the framework is visualized as a pyramid, at the bottom of the pyramid will be those where least regulatory intervention is warranted.
    • It can consist of NBFCs currently classified as non-systemically important NBFCs.
    • Moving up, the next layer may comprise NBFCs currently classified as systemically important NBFCs (NBFC-ND-SI), deposit-taking NBFCs (NBFC-D), HFCs, IFCs, IDFs, SPDs, and CICs.
    • The regulatory regime for this layer shall be stricter compared to the base layer.
    • The next layer may consist of NBFCs identified as ‘systemically significant’.
    • This layer will be populated by NBFCs having a large potential of systemic spill-over of risks and the ability to impact financial stability.
  • Innovation Ecosystem in India

    [pib] Second edition of India Innovation Index 2020

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Indian innovation index

    Mains level: Innovation ecosystem in India

    NITI Aayog is set to release the second edition of the India Innovation Index 2020 tomorrow.

    *Statewise rankings will be updated tomorrow.

    Updated on 21st Jan, Thursday.

    India Innovation Index (III)

    • The release of the second edition of the index—the first was launched in October 2019—demonstrates the Government’s continued commitment towards transforming the country into an innovation-driven economy.
    • The index attempts to create an extensive framework for the continual evaluation of the innovation environment of 29 states and seven UTs in India.
    • It intends to perform the following three functions-
    1. Ranking of states and UTs based on their index scores
    2. Recognizing opportunities and challenges, and
    3. Assisting in tailoring governmental policies to foster innovation
    • The India Innovation Index 2019 is calculated as the average of the scores of its two dimensions – Enablers and Performance.
    • The states have been bifurcated into three categories: major states, north-east and hill states, and union territories/city-states/small states.

    Significance

    • The study examines the innovation ecosystem of Indian states and union territories.
    • The aim is to create a holistic tool which can be used by policymakers across the country to identify the challenges to be addressed and strengths to build on when designing policies.
  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Burden of Anaemia in India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Anaemia

    Mains level: Anaemia

    Indian women and children are overwhelmingly anaemic, according to the National Family Health Survey (NFHS) 2019-20 released this month, and the condition is the most prevalent in the Himalayan cold desert.

    Anaemia is the condition of having a lower-than-normal number of red blood cells or a quantity of haemoglobin. How widespread is it in India?

    What is Anaemia?

    • The condition of having a lower-than-normal number of red blood cells or a quantity of haemoglobin. It can make one feel tired, cold, dizzy, and irritable, and short of breath, among other symptoms.
    • A diet that does not contain enough iron, folic acid, or vitamin B12 is a common cause of anaemia.
    • Some other conditions that may lead to anaemia include pregnancy, heavy periods, blood disorders or cancer, inherited disorders, and infectious diseases.

    How widespread is anaemia in our country?

    • In Phase I of the NHFS, result factsheets have been released for 22 states and UTs.
    • In a majority of these states and UTs, more than half the children and women were found to be anaemic.
    • In 15 of these 22 states and UTs, more than half the children are anaemic. Similarly, more than 50 percent of women are anaemic in 14 of these states and UTs.
    • The proportion of anaemic children and women is comparatively lower in Lakshadweep, Kerala, Meghalaya, Manipur, Mizoram, and Nagaland.
    • However, it is higher in Ladakh, Gujarat, J&K, and West Bengal, among others.
    • Anaemia among men was less than 30 percent in a majority of these states and UTs.

    What was the methodology used?

    • NFHS used the capillary blood of the respondents for the estimation of anaemia. For children, haemoglobin of fewer than 11 grams per decilitre (g/dl) indicated anaemia.
    • For non-pregnant and pregnant women, it was less than 12 g/dl and 11g/dl respectively, and for men, it was less than 13 g/dl.
    • Among children, the prevalence was adjusted for altitude and among adults, it was adjusted for altitude and smoking status.

    Why is anaemia so high in the country?

    • Iron-deficiency and vitamin B12-deficiency anaemia are the two common types of anaemia in India.
    • Among women, iron deficiency prevalence is higher than men due to menstrual iron losses and the high iron demands of a growing foetus during pregnancies.
    • Lack of millets in the diet due to overdependence on rice and wheat, insufficient consumption of green and leafy vegetables could be the reasons behind the high prevalence of anaemia in India.

    What about the cold desert region of the western Himalaya?

    • In the union territory of Ladakh, a whopping 92.5 per cent children, 92.8 per cent women, and around 76 per cent men are anaemic in the given age groups, as per the survey.
    • The high prevalence in this region could be due to the short supply of fresh vegetables and fruits during the long winter each year.
    • Crops here are generally only grown in summer and during winter; residents fail to get a regular supply of green vegetables and fresh produce from outside, due to restricted connectivity in harsh weather.
    • However, there could be other factors as well and the causes of anaemia here are yet to be scientifically ascertained.
  • Women empowerment issues – Jobs,Reservation and education

    Internet usage in Indian states

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not Much

    Mains level: Internet usage in India and the digital divide

    The recent National Family Health Survey (NFHS-5) survey helps us gain an idea about the spread of awareness regarding the internet among people.

    This newscard provides a picture of gendered as well as regional differentiation of internet usage in India.

    Statewise Internet Usage

    (1) Gendered data

    • A very high differential is also seen among the female and male population who have ever used the internet. In every state, it is seen that the percentage of male users exceeds the number of females.
    • The states and Union territories with the highest percentage of internet users among men are Goa (82.9 %), Lakshadweep (80.3 %), and Mizoram (79.7 %).
    • Also, states like Sikkim (76.7 %), Goa (73.7 %) and Mizoram (67.6 %) have the highest percentage of female internet users. The lowest internet usage among men is seen in Meghalaya (42.1 %), Assam (42.3 %) and Bihar (43.6 %).
    • In some states like Bihar, Tripura, Andhra Pradesh and Telangana, there is almost double the number of male internet users than female ones. Among women, it is seen in Bihar (20.6 %), Andhra Pradesh (21 %) and Tripura (22.9 %).

    (2) Urban-Rural divide

    • Except for West Bengal, there is no other state which shows a lower percentage of urban male internet users compared to rural ones.
    • States like Goa, Kerala and Lakshadweep don’t show a huge variation in internet accessibility in the urban and rural areas.
    • But in every other state, there is an approximate difference of 10-15 % between the two regions, with urban areas staying ahead.

    Why it matters?

    • The internet today has a very huge range and a big impact on the lifestyle and empowerment of people.
    • Female empowerment and gender equality have been one of the UN-mandated Sustainable Development Goals that our country is trying to achieve.
    • Good and affordable internet availability to women will be a big step towards fulfilling this goal.

    Significance of the data

    • Gender differentiation that is seen in the offline world also affects the variations that we have seen in the online world, which includes differences in education, employment and income.
    • Sexual harassment and trolling are other reasons why people prefer to keep their female relatives away from the internet.
    • Just like phone ownership was used as an indicator to understand the women empowerment situation in the country, this too can be an indicator for the same.

    Conclusion

    • The results from the NFHS-5 survey are still partial, but they have shown a great variation in the access to the internet among the states, between men and women and also between the rural and urban regions of each state.
    • When we look at the differentials in the usage of the internet by women across the rural and urban regions, a huge gap is seen between the urban and rural women’s use of the internet.
    • The variations are very high, with the percentage of women users of the internet in rural areas being just half of that in urban areas. These disparities paint a sad picture.
  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    National Family Health Survey- 5 Part: I

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NFHS

    Mains level: Data on India's health

    • Current times require integrated and coordinated efforts from all health institutions, academia and other partners directly or indirectly associated with the health care services to make these services accessible, affordable and acceptable to all.
    • The data in NFHS-5 gives requisite input for strengthening existing programmes and evolving new strategies for policy intervention, therefore government and authorities should take steps to further improve the condition of women in India.

    The first phase of the fifth National Family Health Survey (NFHS-5) has been released.

    Do you think that India is still the sick man of Asia?

    What is the National Family Health Survey?

    • The NFHS is a large-scale, multi-round survey conducted in a representative sample of households throughout India.
    • Three rounds of the survey have been conducted since the first survey in 1992-93.
    • The survey provides state and national information for India on fertility, infant and child mortality, the practice of family planning, maternal and child health, reproductive health, nutrition, etc.
    • The Ministry of Health has designated the International Institute for Population Sciences (IIPS) Mumbai, as the nodal agency, responsible for providing coordination and technical guidance for the survey.

    Part I of the Survey

    • The latest data pertains to 17 states — including Maharashtra, Bihar, and West Bengal — and five UTs (including J&K) and, crucially, captures the state of health in these states before the Covid pandemic.
    • Phase 2 of the survey, which will cover other states such as Uttar Pradesh, Punjab and Madhya Pradesh, was delayed due to the pandemic and its results are expected to be made available in May 2021.

    Highlights of the NHFS-5

    • The NFHS-5 contains detailed information on population, health, and nutrition for India and its States and Union Territories.
    • This is a globally important data source as it is comparable to Demographic Health Surveys (DHS) Programme of 90 other countries on several key indicators.
    • It can be used for cross country comparisons and development indices.

    Good news

    • Several of the 22 states and UTs, for which findings have been released, showed an increase in childhood immunisation.
    • There has been a drop in neonatal mortality in 15 states, a decline in infant mortality rates in 18 states and an increase in the female population (per 1,000 males) in 17 states.
    • Fertility rate decline and increase in contraceptive use were registered in almost all the states surveyed showing trends of population stabilization.

    Some bad news

    • There has been an increase in stunting and wasting among children in several states, a rise in obesity in women and children, and an increase in spousal violence.
    • In several other development indicators, the needle has hardly moved since the last NFHS-4.

    (1) Hunger Alarm

    • The proportion of stunted children has risen in several of the 17 states and five UTs surveyed, putting India at risk of reversing previous gains in child nutrition made over previous decades.
    • Worryingly, that includes richer states like Kerala, Gujarat, Maharashtra, Goa and Himachal Pradesh.
    • The share of underweight and wasted children has also gone up in the majority of the states.

    (2) Fertility Rate

    The total fertility rate (TFR) is defined as the average number of children that would be born to a woman by the time she ends childbearing.

    • The TFR across most Indian states declined in the past half-a-decade, more so among urban women, according to the latest NFHS-5.
    • Sikkim recorded the lowest TFR, with one woman bearing 1.1 children on average; Bihar recorded the highest TFR of three children per woman.
    • In 19 of the 22 surveyed states, TFRs were found to be ‘below-replacement’ — a woman bore less than two children on average through her reproductive life.
    • India’s population is stabilizing, as the total fertility rate (TFR) has decreased across majority of the states.

    (3) Under-5 and infant mortality rate (IMR)

    • The Under 5 and infant mortality rate (IMR) has come down but in parallel recorded an increase in underweight and severely wasted under 5 children among 22 states that were surveyed.
    • These states are Goa, Gujarat, Himachal Pradesh, Kerala, Maharashtra, Meghalaya, Mizoram, Nagaland, Telangana, Tripura, West Bengal, Lakshadweep and Dadra & Nagar Haveli and Daman and Diu.

    For the first time: Gaps in internet use

    • In 2019, for the first time, the NFHS-5, which collects data on key indicators on population health, family planning and nutrition, sought details on two specific indicators: Percentage of women and men who have ever used the Internet.
    • On average, less than 3 out of 10 women in rural India and 4 out of 10 women in urban India ever used the Internet, according to the survey.
    1. First, only an average of 42.6 per cent of women ever used the Internet as against an average of 62.16 per cent among the men.
    2. Second, in urban India, average 56.81 per cent women ever used the Internet compared to an average of 73.76 per cent among the men.
    3. Third, dismal 33.94 per cent women in rural India ever used the Internet as against 55.6 per cent among men.
    • In urban India, 10 states and three union territories reported more than 50 per cent women who had ever used the Internet: Goa (78.1%), Himachal Pradesh (78.9%), Kerala (64.9%), and Maharashtra (54.3%).
    • The five states reporting the lowest percentage of women, whoever used the Internet in urban India were Andhra Pradesh (33.9%), Bihar (38.4%), Tripura (36.6%), Telangana (43.9%) and Gujarat (48.9%).
  • Human Rights Issues

    India’s Population with Disabilities

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not Much

    Mains level: Disability in India

    December 3 is marked by the UN as International Day of Persons with Disabilities in a bid to promote a more inclusive and accessible world for the differently-abled and to raise awareness for their rights.

    Try this question from our AWE initiative:

    What are the legal provisions and policy initiatives in India for the welfare of persons with disabilities? What are the challenges faced by persons with disabilities in India? 10 marks

    Disability in India

    • About 2.2% of India’s population lives with some kind of physical or mental disability, as per the National Statistics Office report on disability released last year.

    How are the disabled identified?

    • Until the 2011 census, there were questions on seven kinds of disabilities in the questionnaire.
    • This list of disabilities was expanded to 21 when the Rights of People with Disabilities was introduced in 2016.
    • Accordingly, the 2019 report included questions to identify people with temporary loss of ability as well as neurological and blood disorders in addition.
    • The earlier definition included mental retardation and permanent inability to move, speak, hear and see.
    • Significantly, the revised definition recognizes deformities and injuries of acid attack victims as disabilities, entitling them to various relief measures.

    Who are disabled and in what way?

    • Rural men had the highest prevalence of disability in India, according to the NSO report.
    • A higher proportion of men were disabled in India compared with women, and disability was more prevalent in rural areas than in urban areas.
    • Inability to move without assistance was the most common disability. More men experienced locomotor disability than women.
    • These numbers were self-reported. In other words, the respondents were asked if they experienced any difficulty in performing tasks like moving, talking, etc.

    Are these measures in line with those from other surveys?

    • The 2011 census estimated that the number of people with disabilities in India is close to 2.68 crore (or 2.2% of the population) — that is more than the entire population of Australia.
    • This number was based on the older definition of disability, yet the proportion of disabled people in the population is not different from the 2019 NSO report, which used the expanded definition of disability.
    • Other metrics for evaluating disability have provided different estimates.
    • A group of doctors from AIIMS found that alternate questionnaires like the Rapid Assessment of Disability have resulted in a prevalence ranging from 1.6%-43.3%.

    How can the range be so wide?

    • The proportion of population facing disability becomes bigger as one move from a narrow definition to a broader one.
    • For instance, if one defines disability as the difficulty in accessing public services for all kinds of reasons, even social or economic, then the proportion goes up.

    Why is it important to map disabled people?

    • Like other disadvantaged groups, the disabled in India are entitled to some benefits, ranging from reservation in educational institutes to concessions on railway tickets.
    • To claim these benefits, they have to furnish certificates as proof of disability.
    • At the macro level, data on the prevalence and type of disability is useful while making allocations for welfare schemes.
  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Sex Ratio in India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Sex Ratio

    Mains level: Sex ratio in India

    A 2018 report on “vital statistics of India based on the Civil Registration System” shows crucial data of sex ratios of major states in India.

    Sex Ratio

    • Sex ratio at birth is the number of females born per thousand males.
    • Sex ratios are among the most basic of demographic parameters and provide an indication of both the relative survival of females and males and the future breeding potential of a population.

    Try this PYQ

    Q.Consider the following specific stages of demographic transition associated with economic development:

    1. Low birth rate with a low death rate
    2. High birth rate with a high death rate
    3. High birth rate with a low death rate

    Select the correct answer using the codes given below:

    (a) 1, 2 and 3 only

    (b) 3, 2 and 1 only

    (c) 2, 3 and 1 only

    (d) 3, 2 and 1 only

    Statewise data

    • Arunachal Pradesh recorded 1,084 females born per thousand males, followed by Nagaland (965) Mizoram (964), Kerala (963) and Karnataka (957).
    • The worst was reported in Manipur (757), Lakshadweep (839) and Daman & Diu (877), Punjab (896) and Gujarat (896).
    • Delhi recorded a sex ratio of 929, Haryana 914 and Jammu and Kashmir 952.
    • The number of registered births increased to 2.33 crore in 2018 from 2.21 crore registered births the previous year.
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    What is a Technical Recession?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Terminologies such as Slowdown, Recession, Depression

    Mains level: Hurdles to India's economic growth

    Latest RBI bulletin projects contraction for a second consecutive quarter, which means the economy, is in a ‘technical recession’.

    Nowcasts by RBI

    • In its latest monthly bulletin, the Reserve Bank of India has dedicated a chapter on the “State of the economy”.
    • The idea is to provide a monthly snapshot of some of the key indicators of India’s economic health.
    • As part of the exercise, the RBI has started “nowcasting” or “the prediction of the present or the very near future of the state of the economy”.
    • And the very first “nowcast” predicts that India’s economy will contract by 8.6% in the second quarter (July, August, September) of the current financial year.
    • It implies India that has entered a “technical recession” in the first half of 2020-21— for the first time in its history.

    What is a Recessionary Phase?

    • At its simplest, in any economy, a recessionary phase is the counterpart of an expansionary phase.
    • In simpler terms, when the overall output of goods and services — typically measured by the GDP — increases from one quarter (or month) to another, the economy is said to be in an expansionary phase.
    • And when the GDP contracts from one quarter to another, the economy is said to be in a recessionary phase.
    • Together, these two phases create what is called a “business cycle” in any economy. A full business cycle could last anywhere between one year and a decade.

    Now try this PYQ:

    Q.Consider the following actions by the Government:

    1. Cutting the tax rates
    2. Increasing government spending
    3. Abolishing the subsidies

    In the context of economic recession, which of the above actions can be considered a part of the “Fiscal stimulus” package?

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    How is the Recession different?

    • When a recessionary phase sustains for long enough, it is called a recession. That is, when the GDP contracts for a long enough period, the economy is said to be in a recession.
    • There is, however, no universally accepted definition of a recession — as in, for how long should the GDP contract before an economy is said to be in a recession.
    • But most economists agree with the US definition that during a recession, a significant decline in economic activity spreads across the economy and can last from a few months to more than a year.

    Then, what is a Technical Recession?

    • While the basic idea behind the term “recession” — significant contraction in economic activity — is clear, from the perspective of empirical data analysis, there are too many unanswered queries.
    • For instance, would quarterly GDP be enough to determine economic activity? Or should one look at unemployment or personal consumption as well?
    • It is entirely possible that GDP starts growing after a while but unemployment levels do not fall adequately.
    • To get around these empirical technicalities, commentators often consider a recession to be in progress when real GDP has declined for at least two consecutive quarters.
    • That is how real quarterly GDP has come to be accepted as a measure of economic activity and a “benchmark” for ascertaining a “technical recession”.

    How long do recessions last?

    • Typically, recessions last for a few quarters. If they continue for years, they are referred to as “depressions”.
    • But depression is quite rare; the last one was during the 1930s in the US.
    • In the current scenario, the key determinant for any economy to come out of recession is to control the spread of Covid-19.
  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Index of Eight Core Sector Industries

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Core Sector Industries

    Mains level: Core sector industries and their impacts

    The Office of Economic Advisor within the Department for Promotion of Industry and Internal Trade (DPIIT) has released the Index of Eight Core Industries (ICI) for September 2020.

    Try this PYQ:

    Q.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

    (a) Coal production

    (b) Electricity generation

    (c) Fertilizer production

    (d) Steel production

    What is the Index of Core Industries?

    • As the title suggests, this is an index of the eight most fundamental industrial sectors of the Indian economy and it maps the volume of production in these industries.
    • It gives the details of these eight sectors — namely Coal, Natural Gas, Crude Oil, Refinery Products (such as Petrol and Diesel), Fertilizers, Steel, Cement and Electricity.
    • Since these eight industries are the essential “basic” and/or “intermediate” ingredient in the functioning of the broader economy, mapping their health provides a fundamental understanding of the state of the economy.
    • In other words, if these eight industries are not growing fast enough, the rest of the economy is unlikely to either.

    ICI this year

    • This data is to focus on the trend of ICI growth over the past 6 months — that is, since the start of the Covid-19 pandemic and associated lockdowns.
    • A crucial factor in this regard would be the next wave of Covid-19 infections.
    • If there is a surge in the winter months — as is being witnessed in most Europe and the US — then India’s recovery will be dented yet again.