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  • Key Insights: All India Household Consumption Expenditure Survey

    Why in the News?

    • Recently, the government has disclosed the broad findings of the All India Household Consumption Expenditure Survey conducted between August 2022 and July 2023.

    About All India Household Consumption Expenditure Survey (CES):

    • The CES is a quinquennial (recurring every five years) survey conducted by the National Statistical Office (NSO).
    • It is designed to collect information on the consumption spending patterns of households across the country, both urban and rural.
    • The data gathered in this exercise reveals the average expenditure on goods (food and non-food) and services.
    • It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.

    Key Findings of the recent Survey:

    • Rise in Monthly Per Capita Consumption Expenditure:
      • Urban: Witnessed a 33.5% increase to ₹3,510.
      • Rural: Marked a 40.42% surge to ₹2,008 since 2011-12.
    • Shift in Spending Pattern:
      • Food Expenditure: Decreased from 52.9% to 46.4% in rural households and from 42.6% to 39.2% in urban households since 2011-12.
      • Implications: Potential impact on retail inflation calculations due to reduced weightage of food prices.
    • Inclusion of Social Welfare Benefits:
      • Separate calculation for items received through schemes like PM Garib Kalyan Ann Yojana.
      • Items Included: Computers, mobile phones, bicycles, and clothing.
    • Adjusted Monthly Per Capita Expenditure:
      • Rural: ₹2,054;
      • Urban: ₹3,544 (excluding free education and healthcare sops).
    • Socio-Economic Disparities:
      • Bottom 5%: Rural – ₹1,373; Urban – ₹2,001.
      • Top 5%: Rural – ₹10,501; Urban – ₹20,824.
    • State-wise analysis:
      • Sikkim: Highest MPCE – Rural: ₹7,731; Urban: ₹12,105.
      • Chhattisgarh: Lowest MPCE – Rural: ₹2,466; Urban: ₹4,483.

    Major Shifts Includes:

    • Broad-based Growth:
      • Rural-Urban Dynamics: B.V.R. Subrahmanyam, CEO of Niti Aayog, highlights that India’s growth story is “broad-based,” with rural incomes and expenditures outpacing those in urban areas.
      • Narrowing Divide: The urban-rural consumption gap has decreased from 91% in 2004-05 to 71% in 2022-23, indicating diminishing inequality.
    • Shifts in Consumption Patterns:
      • Food Expenditure: Rural households’ spending on food has fallen below 50% of their total expenditure for the first time. Lower spending on staples like pulses and cereals is accompanied by increased expenditure on consumer durables and services.
      • Income Growth: Rising expenditures on items such as TVs, fridges, and mobile phones suggest improved incomes and evolving lifestyles.
    • Changing Poverty Metrics:
      • Poverty Estimates: Based on MPCE averages, poverty levels are projected to be below 5%, according to Mr. Subrahmanyam. Informal estimates indicate a decline in poverty, with destitution nearly eradicated due to various welfare schemes.
      • Inclusive Growth: Government initiatives such as Ayushman Bharat and free education have contributed to lifting millions out of poverty, reflecting a multi-dimensional approach to poverty alleviation.

  • Some Basic Facts about Indian Farmers

    Introduction

    • Amidst the ongoing farmer protests, the demand for a legal assurance backing Minimum Support Prices (MSPs) has taken center stage, sparking debates and polarizing opinions.
    • Delving into the intricacies of MSPs is crucial to grasp the gravity of this contentious issue.

    Deciphering MSPs: A Primer

    • Fundamental Concept: MSPs, or Minimum Support Prices, signify the price floor set by the government for various crops, serving as a safety net to safeguard farmers’ incomes.
    • Ramifications: The significance of MSPs transcends mere agricultural economics, influencing farmers’ livelihoods, consumer prices, and even governmental budgetary allocations.

    Backdrop of Farmer Protests

    • Escalating Tensions: The introduction and subsequent repeal of three farm laws by the current Union government in 2020 have catalysed widespread farmer protests, drawing attention to the MSP debate.
    • Polarized Discourse: The discourse surrounding farmer protests has veered into a realm of political polarization, overshadowing the substantive issues at hand.

    Key Insights into India’s Agricultural Landscape

    [1] Shift in Economic Dynamics

    • Historical Perspective: Post-Independence, agriculture commanded a significant share of India’s workforce and economic output, with around 70% of the workforce engaged in the sector.
    • Contemporary Scenario: Despite a decline in agriculture’s contribution to GDP, the proportion of the agricultural workforce remains relatively high, signaling a skewed economic paradigm. In 2011, approximately 6% of the workforce was engaged in agriculture.

    [2] Transition in Farming Patterns

    • Rising Labour Dependency: The shift from cultivators to agricultural laborers underscores the evolving nature of farming practices, reflecting growing challenges in sustaining agricultural livelihoods. In 1951, 72% of all farm workers were cultivators, whereas by 2011, this proportion decreased to 45%.
    • Small Holdings and Indebtedness: Small and marginal landholdings coupled with high levels of indebtedness paint a grim picture of the financial vulnerability faced by Indian farmers. According to a 2019 survey, around 70% of all agricultural households have a land holding size of less than 1 hectare, and almost 50% are indebted.

    [3] Income Disparities and Debt Burdens

    • Regional Disparities: Regional variations in farm incomes and indebtedness highlight the multifaceted nature of agrarian distress. In 2019, the average monthly income per household was Rs 10,218, while 50% of all farm households were indebted.
    • Terms of Trade Dynamics: Fluctuating terms of trade between farmers and non-farmers further exacerbate farmers’ financial woes, reflecting structural imbalances in the agricultural sector. The Terms of Trade (ToT) between farmers and non-farmers have remained stagnant or negative since 2010-11.

    [4] Global Perspectives on Agricultural Support

    • Comparative Analysis: India’s standing in terms of producer protection and agricultural support reveals stark disparities, challenging misconceptions about excessive financial assistance to Indian farmers.
    • India is Lagging: India ranks last among the countries compared by the OECD on producer protection and lags in terms of the “total support estimate” (TSE) relative to other countries and regions.

    Navigating the Complexities

    • Beyond MSPs: While MSPs occupy a prominent position in the discourse, addressing India’s agricultural woes requires a holistic approach encompassing structural reforms, income augmentation, and infrastructural development.
    • Long-standing Challenges: Structural deficiencies within the agricultural sector necessitate comprehensive interventions, transcending short-term fixes and political rhetoric.

    Conclusion

    • As India grapples with the intricacies of farmer protests and MSP demands, a nuanced understanding of agricultural dynamics is imperative to devise sustainable solutions.
    • Addressing the root causes of agrarian distress demands concerted efforts aimed at bolstering farmers’ resilience, fostering equitable economic growth, and ushering in transformative reforms to ensure the viability of India’s agricultural ecosystem.

    Try this question from CS Mains (2018)

    What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low-income trap? [150 Words, 10 Marks]

    [wpdiscuz-feedback id=”c37r4lomki” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

  • Gender Disparities: Big Blindspot in India’s Health Policy

    Introduction

    • Despite comprising nearly half of India’s health workforce, women face significant barriers in reaching leadership positions within the healthcare sector, highlighting deep-rooted gender disparities in health policy and decision-making.

    Understanding the Gender Gap

    • Data revelations: Official data reveals that while women make up almost 50% of health workers in India, only 18% occupy leadership roles across various health panels, committees, hospitals, and ministries.
    • Impact of Gender Disparity: The over-representation of men at the top of the health pyramid perpetuates inequalities in decision-making and policymaking, leading to skewed health systems that fail to address the diverse needs of the population.

    Insights from Research

    • Diversity Gaps: Recent research highlights the prevalence of diversity gaps in India’s National Health Committees, with an “over-concentration” of men, doctors, individuals from urban areas, and bureaucrats. This centralization of power risks excluding diverse perspectives and experiences, hindering the development of inclusive health policies.
    • Impact on Policy Formulation: The lack of gender diversity in health committees affects policy outcomes, as decisions are often made from a narrow lens, overlooking the nuanced needs of marginalized groups. For instance, the absence of women in decision-making bodies may lead to inadequate consideration of gender-specific health issues such as access to nutritious food for women.

    Challenges Faced by Women

    • Professional Barriers: Women encounter various obstacles in advancing their careers in the health sector, including limited opportunities for promotion, unequal pay, and cultural expectations regarding gender roles.
    • Underrepresentation in Leadership: Women are significantly underrepresented in medical leadership positions, both within health committees and healthcare institutions, further perpetuating gender disparities in decision-making and policy formulation.

    Recommendations for Change

    • Policy Interventions: Affirmative policies, such as reserving seats for women and marginalized groups in health committees, can help address gender disparities and promote inclusive decision-making.
    • Structural Reforms: Structural changes within healthcare institutions, such as promoting flexible working arrangements and providing dedicated resources for women leaders, are essential to breaking down barriers to gender equality in leadership.
    • Community Engagement: Involving directly affected communities in policy-making processes can ensure that health policies are responsive to the needs and priorities of the population, fostering greater inclusivity and accountability.

    Conclusion

    • Achieving gender equality in health leadership requires concerted efforts to address systemic barriers and promote inclusive decision-making.
    • By prioritizing diversity and inclusivity in health policy, India can build more responsive and equitable health systems that serve the needs of all its citizens.

  • Issues in Self-Reporting of Mental Illness

    Introduction

    • Recent studies, including one by researchers from IIT Jodhpur, indicate alarmingly low rates of self-reporting for mental health problems in India.

    Mental Health Under-Reporting in India

    • NSS 2017-2018 Findings: The NSS data, based on self-reporting by over 550000 individuals, revealed mental illness self-reporting rates of less than 1%.
    • Scale of Mental Illness: The 2017 NMHS conducted by NIMHANS estimated around 150 million individuals requiring treatment for mental illness in India.
    • WHO Estimates: India bears a heavy burden with 2443 DALYs per 10,000 population and an age-adjusted suicide rate of 21.1 per 100,000.
    • Suicide Trends: India’s contribution to global suicide deaths surged to 36% in 2016, with a concerning rise reported in 2021, especially among youth and middle-aged adults.
    • National Mental Health Survey: Alarming rates of depression among teenagers and Substance Use Disorders (SUDs) prevalence of 22.4% among adults highlight the gravity of the situation.

    Key Challenges

    • Stigma and Awareness: Social stigma and poor awareness impede access to mental healthcare, leading to delayed treatment-seeking and social isolation.
    • Out-of-Pocket Expenses: The IIT Jodhpur study highlighted significant out-of-pocket expenses, particularly in the private sector, for mental health services.
    • Vulnerability Factors: Individuals with lower income and education levels are more vulnerable to mental disorders, exacerbating their socioeconomic challenges.
    • Socioeconomic Divide: Individuals with higher incomes were more likely to report health problems, indicating a socioeconomic disparity.
    • Budget and Infrastructure: Inadequate budget allocation, lack of insurance coverage, and insufficient infrastructure pose hurdles to mental healthcare delivery.
    • Shortage of Professionals: India grapples with a severe shortage of mental health professionals, with only 3 psychiatrists per million people.

    Government Initiatives

    • Mental Healthcare Act, 2016: Aims to safeguard the rights of individuals with mental illnesses, enhance access to mental healthcare, and decriminalize suicide attempts.
    • National Mental Health Policy, 2014: Prioritizes universal access to mental healthcare and endeavors to mitigate risk factors linked to mental health issues.

    Way Forward

    • Combat Stigma: Launch nationwide campaigns to shift societal attitudes towards mental illness.
    • Enhance Awareness: Integrate mental health education into curricula and disseminate resources in local languages.
    • Improve Coordination: Strengthen collaboration between central and state governments for effective policy implementation.
    • Innovative Solutions: Explore tele-mental health services, bolster support for NGOs, and foster community engagement to address resource shortages.
    • Multisectoral Approach: Embrace a life-course perspective on mental health promotion and enforce legal frameworks.
    • Enhance Mental Health Ecosystem: Define quality metrics, recognize mental health advocates, and ensure affordability and accessibility of care.
    • Embrace Traditional Healing: Explore complementary medicines like Yoga and Ayurveda for mental health treatment.

    Conclusion

    • By prioritizing mental healthcare and fostering collaboration across sectors, India can build a resilient mental health ecosystem that promotes well-being and supports individuals in need.
    • Embracing traditional healing practices alongside modern interventions can offer holistic solutions, paving the way for a mentally healthier nation.

  • White Paper on Economy: A Political Instrument

    white paper

    Introduction

    • The recent presentation of a “white paper” on the Indian economy by Finance Minister in Parliament has sparked debates regarding the country’s economic performance over the past two decades.
    • This document, prepared by the Ministry of Finance, offers a comparative analysis of the economic governance under the Congress-led UPA governments and the BJP-led NDA governments.

    Objectives of the White Paper

    The white paper on the Indian economy outlines four key objectives:

    [A] Informing Governance Challenges

    • It aims to elucidate the economic and fiscal crises inherited by the NDA government from the preceding UPA administration.
    • For instance, data reveals that the fiscal deficit during the UPA era surged from 2.5% in 2004-05 to 6.5% in 2013-14.

    [B] Highlighting Policy Interventions

    • It seeks to elucidate the policies and measures implemented by the NDA government to address economic challenges and restore fiscal health.
    • Notably, the white paper cites the implementation of the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) as significant reforms contributing to economic stability.

    [C] Fostering Informed Debate

    • By presenting a comprehensive analysis, the white paper aims to stimulate a wider and more informed discussion on matters of national interest and fiscal responsibility.
    • For instance, it provides detailed insights into the impact of corruption scandals during the UPA regime on economic governance and public trust.

    [D] Emphasizing National Development

    • It echoes PM Narendra Modi’s call to commit to national development, urging a renewed focus on growth, innovation, and inclusive development.
    • The document emphasizes the importance of fiscal prudence and efficient governance in achieving sustainable economic growth.

    Contents and Claims

    [A] Pre-2014 Economic Condition

    • Fragile Economy: Upon taking office in 2014, the government encountered a fragile economic situation marked by mismanagement, financial indiscipline, and widespread corruption. The economy was in crisis, necessitating substantial reforms and governance overhaul to restore its fundamentals to sound health.
    • Twin Balance Sheet Problem: The economy faced significant challenges, including a ‘twin balance sheet problem’, which hindered the capacity of companies and the banking sector to invest, extend credit, and generate employment.
    • High Inflation and Fiscal Deficits: The period witnessed double-digit inflation, with fiscal and revenue deficits spiralling out of control, exacerbating the economic woes of ordinary and poorer households.
    • Policy Paralysis and Infrastructure Neglect: A lack of decisive policy-making and investment in infrastructure further dented India’s business climate and global image.
    • Scams and Corruption: Numerous scams brought colossal revenue losses to the exchequer, with mismanagement leading to a loss of investor confidence and a slowdown in economic growth.

    [B] Post-2014 Economic Reforms and Achievements

    • Economic Stability and Growth: The government implemented various reforms aimed at stabilizing the economy and promoting growth. This includes transitioning from a ‘twin balance sheet problem’ to a ‘twin balance sheet advantage’, significantly reducing inflation, and building record foreign exchange reserves.
    • Infrastructure and Digital Revolution: There was a focused effort on infrastructure development and digitalization, leading to the world’s fastest rollout of 5G in 2023 and extensive 4G coverage.
    • Transparent Governance: Measures were taken to ensure transparent and objective auctions for natural resources, establishing systems that boost the economy and public finances.
    • Global Recognition and Investment Climate: The reformative measures and stable policy environment have restored confidence among investors, both domestic and foreign. India’s transition from being among the ‘fragile five’ to among the ‘top five’ global economies underscores its significant contribution to global growth.

    Major Interventions: NDA’s Gamechanger

    [A] Transformative Governance Reforms

    • Digital Revolution: Spearheading a digital revolution to streamline governance processes, ensuring transparency, and enabling ease of access to government services.
    • Participatory Governance: Engaging citizens directly in the policymaking process and implementation of policies to foster a more inclusive governance model.

    [B] Social Welfare Schemes

    • Jan Dhan Yojana: A financial inclusion initiative that aims to provide affordable access to financial services such as bank accounts, credit, insurance, and pensions.
    • Swachh Bharat Abhiyan: A nationwide campaign to clean up the streets, roads, and infrastructure of India’s cities, towns, and rural areas.
    • Ujjwala Scheme: A scheme to distribute LPG connections to women from Below Poverty Line (BPL) households to reduce health hazards associated with cooking based on fossil fuels.
    • Digital India: A campaign launched to ensure government services are made available to citizens electronically by improving online infrastructure and by increasing Internet connectivity.
    • Pradhan Mantri Awas Yojana (PMAY): Aimed at providing affordable housing to the urban poor by the year 2022.
    • Pradhan Mantri Fasal Bima Yojana (PMFBY): An insurance service for farmers for their yields. It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim.
    • Pradhan Mantri Ujjwala Yojana: A project to provide LPG connections to women from BPL households to encourage the use of clean fuel.
    • Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): The world’s largest health insurance/assurance scheme fully financed by the government, providing a health cover of ₹5 lakhs per family per year for secondary and tertiary care hospitalization.
    • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Providing income support to all landholding farmers’ families in the country to supplement their financial needs.
    • National Education Policy (NEP) 2020: Aims to make “India a global knowledge superpower”. The NEP 2020 emphasizes making education more holistic, flexible, multidisciplinary, aligned to the needs of the 21st century and aims for a significant overhaul of the existing education system.
    • Mudra Yojana: A scheme to provide easy access to credit for MSMEs and entrepreneurs.

    Critical Analysis

    While the white paper offers valuable insights into India’s economic trajectory, some critics point out its limitations and omissions:

    [A] Selective Emphasis:

    • The document primarily focuses on successes under the NDA regime, overlooking persistent challenges such as unemployment and poverty.
    • Data from the National Sample Survey Office (NSSO) reveals that unemployment rates remained elevated during the NDA era, averaging around 6% compared to 3.8% during the UPA period.

    [B] Lack of Comprehensive Analysis:

    • Critics argue that a holistic assessment of the economy requires a nuanced understanding of diverse factors, including social indicators and long-term structural reforms.
    • For instance, the white paper does not adequately address the challenges of agrarian distress and rural unemployment, which continue to affect large segments of the population.

    [C] Omissions:

    • Key issues such as unemployment and poverty alleviation are conspicuously absent from the analysis, raising questions about the document’s comprehensiveness.
    • Moreover, the white paper does not provide a detailed assessment of the impact of recent policy initiatives such as demonetization and the implementation of the GST on economic growth and employment generation.

    Conclusion

    • The presentation of the white paper on the Indian economy underscores the government’s commitment to transparency and accountability.
    • However, its selective focus and limited scope warrant cautious interpretation.
    • Moving forward, a more inclusive and evidence-based approach to economic analysis is essential to inform policy decisions and foster sustainable development in India.

  • Tax-to-GDP ratio to hit all-time high of 11.7% of GDP in FY25

    tax

    Introduction

    • India’s tax landscape is anticipated to witness significant growth in the coming fiscal year, with the tax-to-GDP ratio expected to reach a historic high of 11.7%.
    • Revenue Secretary Sanjay Malhotra highlights the role of direct taxes in driving this uptick and emphasizes the government’s commitment to streamlining the tax regime for enhanced efficiency and reduced disputes.

    Why ‘Tax-to-GDP’ Ratio matters?

    • The tax-to-GDP ratio measures a nation’s tax revenue relative to the size of its economy.
    • This ratio is used with other metrics to determine how well a nation’s government directs its economic resources via taxation.
    • Developed nations typically have higher tax-to-GDP ratios than developing nations.
    • Higher tax revenues mean a country can spend more on improving infrastructure, health, and education—keys to the long-term prospects for a country’s economy and people.
    • According to the World Bank, tax revenues above 15% of a country’s gross domestic product (GDP) are a key ingredient for economic growth and poverty reduction.

    Forecasted Rise in Tax-to-GDP Ratio

    • Expected Surge: India’s tax-to-GDP ratio is projected to hit 11.7% in 2024-25, showcasing a steady increase from 11.6% in the preceding year and 11.2% in 2022-23.
    • Dominance of Direct Taxes: The surge in the tax ratio is primarily attributed to the growth of direct taxes, which are deemed more equitable.

    What led to this growth?

    [A] Direct Tax Collection

    • Optimistic Outlook: Revenue Secretary anticipates a rise in the adoption of the new tax regime, characterized by simplified tax structures and a higher tax-free income threshold.
    • Growth in Personal Income Tax: Personal income tax collections have witnessed a substantial 28% growth, with a projected moderation to 20%-22% by the fiscal year-end.

    [B] Rationalizing GST Rates

    • Ongoing Review: A Group of Ministers (GoM) appointed by the GST Council is reviewing the rate structure, aiming to rationalize GST rates on various items.
    • Quarterly Meetings: The GST Council is expected to convene regularly to address rate rationalization, although no fixed date has been announced yet.

    [C] Projected Revenue Growth

    • Modest Projections: Despite a buoyant revenue growth of 1.4% this year, projections for the following fiscal year aim for a 1.1% buoyancy, aligning with an anticipated nominal GDP growth of 10.5%.
    • Corporate Tax Dynamics: The deadline for availing the reduced corporate tax rate ends in March 2023, with a significant proportion of companies already benefitting from it.
    • Enforcement Measures: While the Department of Revenue focuses on tax administration, the Enforcement Directorate intervenes in cases related to money laundering, ensuring comprehensive enforcement mechanisms.

  • GST Appellate Tribunals to be set around July or August

    Introduction

    • The Goods and Services Tax (GST) Appellate Tribunals, eagerly anticipated to address taxpayer disputes within the six-and-a-half-year-old indirect tax regime, are set to commence operations around July or August.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
    • It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
    • The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
    • The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.

    Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

    1. Adjudicating Authority
    2. Appellate Authority
    3. Appellate Tribunal
    4. High Court
    5. Supreme Court

    Need for such Tribunal

    • Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month-old indirect tax regime that are now clogging High Courts and other judicial fora.
    • Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
    • Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
    • Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

    Issues with present litigation

    • Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
    • Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
    • Time-consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

    Significance

    • The creation of these tribunals had been in the pipeline since the implementation of the GST regime on July 1, 2017.
    • The number of pending appeals by taxpayers related to central GST levies had surged to over 14,000 (June 2023).

  • Multidimensional Poverty in India: A Decade of Progress

    Multidimensional Poverty

    Introduction

    • Finance Minister Nirmala Sitharaman announced in her Interim Budget speech that 25 crore Indians were lifted out of poverty over the past decade.
    • This remarkable achievement reflects the government’s commitment to inclusivity.

    Data from NITI Aayog’s Discussion Paper

    • NITI Aayog’s Insight: The data comes from a discussion paper titled “Multidimensional Poverty in India Since 2005-06,” authored by Ramesh Chand and Yogesh Suri from NITI Aayog, with inputs from the UNDP and OPHI.
    • Decline in Multidimensional Poverty: The paper reveals that multidimensional poverty in India reduced from 29.17% in 2013-14 to 11.28% in 2022-23, with around 24.82 crore individuals escaping poverty during this period.
    • State-Level Impact: Uttar Pradesh topped the list with 5.94 crore individuals escaping poverty, followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.

    Understanding the Multidimensional Poverty Index (MPI)

    • A Novel Approach: MPI differs from traditional poverty measures, incorporating health, education, and living standards. These three dimensions each hold one-third weight in the index.
    • Indicators: MPI uses 10 indicators, including nutrition, child mortality, education, housing, and access to basic amenities, offering a comprehensive view of poverty.
    • India’s Unique MPI: India’s MPI includes additional indicators focusing on maternal health and access to bank accounts, aligning it with national priorities.

    Calculating MPI

    • Identifying “MPI Poor”: If an individual is deprived in at least one-third of the 10 weighted indicators, they are considered “MPI poor.”
    • Three Key Calculations: MPI requires three calculations:
      1. Incidence of Multidimensional Poverty (H): The proportion of MPI poor individuals in the population.
      2. Intensity of Poverty (A): The average proportion of deprivation experienced by MPI poor individuals.
      3. MPI Value: Obtained by multiplying H and A, revealing the share of weighted deprivations faced by MPI poor individuals.

    Data Sources and Estimations

    • Health Metrics: Data for health indicators relies on the National Family Health Survey (NFHS), conducted every five years. The last round covered the 2019-21 period.
    • Calculating MPI for 2012-13 and 2022-23: The paper used interpolation for 2013-14 estimates and extrapolation for 2022-23, enabling a comparison of poverty and deprivation trends.

    Conclusion

    • The reduction in multidimensional poverty over the last decade signifies the government’s dedication to inclusive development, improving the lives of millions of Indians.

  • 22nd Law Commission recommends retaining Criminal Defamation

    defamation

    Introduction

    • The 22nd Law Commission has recommended retaining criminal defamation as an offence in the new legal framework of Bharatiya Nyaya Sanhita.
    • The Law Commission’s report highlights the importance of protecting an individual’s reputation, grounded in Article 21 of the Constitution, which safeguards the right to life and personal liberty.

    Key Recommendations: Upholding Reputation

    • Invisible Asset: Reputation, a valuable asset, cannot be seen but is diligently built over a lifetime and can be tarnished in an instant.
    • Essence of Protection: The jurisprudence around criminal defamation laws is rooted in the essence of safeguarding one’s reputation.
    • Balancing Act: While acknowledging that criminal defamation might seem contradictory to freedom of speech and expression, the Law Commission suggests treading carefully.
    • Harmful Speech: The Commission advises that speech should only be deemed illegal when it intends substantial harm, and when such harm becomes a reality.

    What is Criminal Defamation?

    • Defamation: Defamation entails the act of publishing damaging content that diminishes an individual’s or entity’s reputation, from the viewpoint of an ordinary person. In India, defamation is both a civil and criminal offense.
    • Sections 499 and 500: These sections in the Indian Penal Code address criminal defamation. Section 499 defines the offense, while Section 500 outlines the associated punishment.

    Arguments in Favor of Retaining Criminal Defamation

    • Protection of Reputation: An individual’s reputation, an integral part of Article 21, is as vital as free speech.
    • Balancing Act: The right to free speech (Article 19(1)(a)) must be balanced against the right to reputation (Article 21).
    • Inadequate Compensation: Monetary compensation in civil defamation may not proportionately compensate for reputation harm.
    • Editorial Responsibility: Editors bear the responsibility for published content, with significant consequences for individuals and the nation.
    • Counteracting Online Defamation: In the absence of an effective internet censorship mechanism, criminalizing defamation is a necessary safeguard.
    • State’s Interest: Criminalizing defamation is part of the state’s compelling interest to protect citizens’ dignity and reputation.

    Arguments against Retaining  

    • Chilling Effect: Criminal defamation may have a chilling effect on free speech, with a lower threshold for prosecution than civil damages.
    • Media Freedom: Freedom of speech and media expression is crucial for vibrant democracies, and the threat of prosecution can stifle truth.
    • Misinterpretation of Dissent: Dissent may be misconstrued as unpalatable criticism, leading to imprisonment under Sections 499 and 500 of IPC.
    • Collective Reputation: The right to reputation cannot extend to collectives like the government, which can rectify reputational damage.
    • Redundancy: Since civil defamation remedies exist, retaining criminal defamation may serve little purpose except coercion and harassment.
    • Global Trend: Many nations, including neighbouring Sri Lanka and the UK, have decriminalized defamation.
    • International Perspective: The International Covenant on Civil and Political Rights urges states to abolish criminal defamation as it intimidates citizens and deters exposing wrongdoing.

    Conclusion

    • Criminal defamation cases have been used to suppress investigative journalism, hindering democratic accountability.
    • Criminal defamation should not be misused by the state, especially as the Code of Criminal Procedure gives public servants an advantage.
    • Interim measures can ensure fair proceedings and prevent excessive penalties.

    Back2Basics: Law Commission of India

    Details
    Establishment An executive body established by the Government of India, with the first commission established in 1955.
    Tenure Each Law Commission serves a term of three years.
    Function Acts as an advisory body to the Ministry of Law and Justice for legal reforms in India.
    Recommendations The recommendations made by the Law Commission are not binding.
    Historical Background The first Law Commission was established during the British Raj in 1834 by the Charter Act of 1833.
    First Chairman The first Chairman of the Law Commission was Macaulay, who recommended the codification of laws.
    Composition Typically consists of a full-time Chairperson, full-time Members, ex-officio Members, and part-time Members.
    Terms of Reference Undertakes research and reviews of existing laws, recommends reforms, and studies justice delivery systems.
    Major Reforms The Law Commission played a pivotal role in suggesting key enactments like the Indian Penal Code and Criminal Procedure Code.
    Role in Legal Reforms Serves as both an advisory and critical body, with its recommendations often influencing legal reforms in India.
    Supreme Court References The Supreme Court has referred to the work of the Law Commission and followed its recommendations in various cases.
    Promotion of Accountability Aims to promote an accountable and citizen-friendly government, transparency, and the right to information.

  • Key takeaways from All India Survey of Higher Education (AISHE), 2021-22

    Introduction

    • The All India Survey on Higher Education (AISHE) captures student enrollment across eight levels, including undergraduate, postgraduate, PhD, MPhil, diploma, PG diploma, certificate, and integrated programs.
    • The survey received responses from 10,576 standalone institutions, 42,825 colleges, and 1,162 universities/university-level institutions.

    About AISHE

    • AISHE is a report published by the Ministry of Education since 2011.
    • Aim: Portray the status of higher education in the country.
    • Survey covers all institutions in India providing higher education.
    • Data collected on parameters like teachers, student enrollment, programs, exam results, education finance, and infrastructure.
    • Indicators calculated: Institution Density, Gross Enrolment Ratio, Pupil-teacher ratio, Gender Parity Index, Per Student Expenditure.
    • Higher Education defined as education obtained after completing 12 years of schooling or equivalent.

    Key Takeaways:

    [1] Enrollment Trends: Female Dominance

    • Rising Female Enrollment: The AISHE report reveals a consistent increase in female enrollment in higher education institutions.
    • 2014-15 to 2021-22: Female enrollment grew by 32%, from 1.5 crore in 2014-15 to 2.07 crores in 2021-22. In the last five years, it increased by 18.7% from 1.74 crore in 2017-18.
    • PhD Enrollment Surge: The most significant growth was observed at the PhD level, with 98,636 women enrolled in 2021-22, compared to only 47,717 eight years ago.
    • Proportion of Women: Among the additional 91 lakh students joining higher education in 2021-22 compared to 2014-15, 55% were women. The postgraduate level saw the highest proportion of female students, with 55.4%.

    [2] Gross Enrollment Ratio (GER) and Gender Parity

    • GER Insights: The estimated GER for the age group 18-23 years in India is 28.4, based on 2011 census data.
    • State-wise GER: States with the highest GER include Chandigarh (64.8%), Puducherry (61.5%), Delhi (49%), and Tamil Nadu (47%).
    • Gender Parity Index (GPI): GPI measures the ratio of female GER to male GER. In 26 states and Union Territories, GER favors women. At the national level, the GPI is 1.01, and for SC and ST categories, it is 1.01 and 0.98, respectively.

    [3] Academic Discipline Enrollment

    • UG Enrollment by Discipline: The Bachelor of Arts (BA) program holds the highest enrollment with 1.13 crore students, constituting 34.2% of total undergraduate enrollment. Overall, 3.41 crore students are enrolled in UG programs.
    • UG Discipline Preferences: UG enrollment distribution in 2021-22 is led by Arts (34.2%), followed by Science (14.8%), Commerce (13.3%), and Engineering & Technology (11.8%). BA(Hons) accounts for 6.2%.
    • PG Enrollment: Social science has the highest number of postgraduate students with 10.8 lakh. The Master of Arts (MA) program leads with 20.9 lakh students, constituting 40.7% of total postgraduate enrollment.
    • PhD Discipline: In the PhD category, social sciences rank third after engineering and science. While 52,748 students pursue a PhD in engineering and 45,324 in science, 26,057 opt for PhD in social sciences.

    [4] Preference for Government Institutions

    • Government vs. Private: Surprisingly, 73.7% of all students attend government universities, which constitute only 58.6% of all universities.
    • Government Sector Enrollment: State public universities hold the largest share of enrolment, accounting for around 31% of total university enrolment.
    • Private Universities: In terms of numbers, government-owned universities enroll 71.06 lakh students, while privately managed universities enroll 25.32 lakh students. Students show a preference for government educational institutions.

    [5] Demographics of Graduates

    • Graduation Statistics: In the 2021-22 academic year, an estimated 1.07 crore students graduated from various programs, with 50.8% being women.
    • Category-wise Graduates: Approximately 35% of graduates belong to Other Backward Classes (OBC), 13% are from Scheduled Caste (SC), and 5.7% are from Scheduled Tribe (ST) communities.
    • Stream-wise Graduation: Arts and social sciences streams exhibit higher graduation rates. At the undergraduate level, BA degrees top the list with 24.16 lakh graduates. MA degrees dominate at the postgraduate level with 7.02 lakh graduates. In PhD programs, science leads with 7,408 graduates, followed by engineering and technology with 6,270 graduates.