💥UPSC 2027,2028 Mentorship (April Batch) + Access XFactor Notes & Microthemes PDF

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  • Women empowerment issues – Jobs,Reservation and education

    Menstrual leave: The topic of debate

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Menstruation a biological process

    Mains level: Menstrual leave policy debate

    Menstrual leave

    Context

    • Menstrual leave is a workplace policy that allows female employees to take time off from work during their menstrual cycle due to physical discomfort or pain. This policy has been a topic of debate, with some arguing that it is necessary to accommodate the needs of women during their period, while others argue that it creates discrimination and reinforces gender stereotypes.

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    Menstrual leave

    Background

    • Recently, Kerala government announced that the state government will grant menstrual leave for female students in all state universities under the Department of Higher Education.
    • The declaration occurred shortly after the Cochin University of Science and Technology (CUSAT) announced the decision, in response to a request by the students’ union, to grant menstruation leave to all of its female students.

    Menstrual leave and the debate

    • Widespread conversation in recent years: The adoption of voluntary menstrual leave policies by some companies in recent years has led to a widespread conversation on periods in India.
    • Termed as Special leave for women: When the Bihar government implemented a period leave policy in 1992, it was termed special leave for women due to the stigma attached to the word menstruation.
    • Normalising conversation: The recent initiative by employers to provide period leave has been discussed and debated in the public sphere, thereby normalising the conversation around menstruation to an extent.

    Who are menstruators?

    • Menstruators is an inclusive term refers to individuals who have female reproductive anatomy and experience menstrual periods.
    • It includes, women, trans men, and non-binary persons as well.
    • This biological process also decouples menstruation from womanhood.

    Menstrual leave

    Arguments in favour

    • Biological process comes with physical pain: Though menstruation is a biological process, it is accompanied by cramps, nausea, back and muscle pains, headaches, etc.
    • Polycystic ovary syndrome (PCOS): Additionally, these can take a debilitating form amongst menstruating people who suffer from polycystic ovary syndrome (PCOS) and endometriosis.
    • For instance: In India, 20 per cent of menstruators have PCOS and approximately 25 million suffer from endometriosis. The intensity of pain can vary for individuals for a variety of reasons.
    • Acknowledges the reality: For many menstruators, it is a biological process intertwined with medical symptoms. Mandatory period leave is an affirmative action policy that acknowledges this reality.
    • Kerala governments announcement is a welcome step: The Kerala government’s announcement to grant menstrual leave to all female students of state universities is a welcome move that takes the discourse a step further into educational institutions.
    • It should be replicated across universities and schools in India: This will also help reduce the drop-out rates of female students from government schools in rural India caused by the lack of clean toilets, running water, sanitary pads, etc.

    Arguments against

    • Fear of bias in hiring: The major opposition to a menstrual leave policy is the fear of bias in hiring due to the financial costs to employers. Discriminatory hiring has been a cause of concern in many countries.
    • Probable decline in women labour force participation: It is often equated to the decline in the labour force participation of women following the introduction of mandatory paid maternity leave.
    • Medicalising normal biological process: Period leave is often seen as medicalising a normal biological process.

    Menstrual leave

    Did you know?

    “Female sugarcane cutters surgically remove their uteri to secure work”

    • A widely accepted menstrual health framework can also ameliorate the conditions of female workers in the unorganised sector.
    • In Maharashtra’s Beed district, contractors in the sugarcane industry do not hire anyone who menstruates.
    • More than 10,000 female sugarcane cutters have had to surgically remove their uteri to secure work.
    • Most of them are in their twenties and thirties, and now experience various post-surgery health complications. Such exploitation is a human rights violation.

    Way ahead

    • Need to bridge the gaps: The path to equality does not lie in inaction due to fear of further discrimination. What is needed is a holistic outlook aimed at bridging existing gaps.
    • Comprehensive and inclusive approach is must: The implementation of menstrual leave should be based on a comprehensive and inclusive approach that takes into account the needs and rights of all employees, regardless of gender.
    • Mandatory self-care leaves as an alternative: Employers should be made to introduce a mandatory self-care leave as an alternative to period leaves for those who cannot avail of the latter. Employees should be able to utilise their self-care leave as they deem fit. This will reduce burnout and increase productivity.
    • Self-care leave will also destigmatise menstruation: The names menstrual leave and self-care leave will also destigmatise menstruation and self-care respectively. Further, employers should be made to implement a stringent diversity, equity, and inclusion (DEI) framework.
    • Safeguards menstruators in unorganized sector: A formal menstrual leave policy in the organized sector can act as a catalyst in safeguarding menstruators in the unorganized sector too.

    Conclusion

    • Menstrual health is a public health issue. Considering the sizable population of menstruators in India who face stigma, period leave cannot be dismissed anymore as a foreign concept. It is a pivotal step in ensuring proper reproductive health equity in India.

    Mains question.

    Q. The topic of Menstrual leave is in the headlines for some time now. Anaalyse the dabate

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  • Foreign Policy Watch: India-United States

    iCET: Initiative on Critical and Emerging Technologies between India and US

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: iCET

    Mains level: India-US bilateral relations and High technology cooperation

    iCET

    Context

    • The talks between India’s National Security Advisor Ajit Doval and his American counterpart Jake Sullivan in Washington this week have concluded with the announcement of a new road map for deeper military and techno-economic cooperation between the two countries that is iCET.

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    Background: Idea first mooted in QUAD summit

    • The idea was first mooted in the meeting between Prime Minister Narendra Modi and President Joe Biden on the margins of the Tokyo summit of the Quadrilateral Security Dialogue (Quad) last May.

    Ups and downs in high technology cooperation in US-India relations

    • Early advances in India’s nuclear and space programs: High technology cooperation has long been a major focus of US-India relations. Early advances in India’s nuclear and space programmes in the 1950s and 1960s involved significant inputs from the US.
    • US nuclear sanctions and reduced cooperation: But the US nuclear sanctions from the 1970s steadily whittled down the extent of bilateral high-tech cooperation.
    • Civil nuclear initiative renewed cooperation: The historic civil nuclear initiative of 2005 opened the door for renewed technological cooperation.
    • Political ambivalence bureaucratic inertia prevented best use: But residual restrictions on technology transfer in Washington and Delhi’s political ambivalence and bureaucratic inertia prevented the best use of the new possibilities.
    • The iCET process and new possibilities ahead: The iCET process, which will be monitored and driven from the PMO in Delhi and the White House in Washington, will hopefully bring greater coherence to this round of India-US technological engagement.

     iCET

    What is Initiative on Critical and Emerging Technologies (iCET)?

    • Cooperation in emerging technology: The iCET is a partnership between India and the US to work together in developing important and new technologies.
    • Areas of collaboration for instance: The iCET involves collaboration in a range of areas including quantum computing, semiconductors, 5G and 6G wireless infrastructure, and civilian space projects such as lunar exploration.
    • Adding depth and breadth to already growing partnership: The iCET’s goal is to increase the technology interaction between the US and India while also potentially adding additional strategic depth and breadth to their growing partnership.
    • Directly monitored by PMO and White house: The Prime Minister’s Office in Delhi and the White House in Washington will oversee and direct the iCET.

    iCET

    Significance of iCET for India

    • The importance of iCET in the context of assertive China: Lending urgency to the iCET is the growing convergence of Indian and US interests in managing the security, economic, and technological challenges presented by a rising and assertive China.
    • India’s alternative for dependence on Russian military technology: India is also looking to reduce its over dependence on Russian weapons and military technology and to produce more weapons at home in partnership with western countries.
    • Boost to India’s technological capabilities: The iCET would provide India with access to cutting-edge technology and expertise in areas that are critical and emerging in nature.
    • Economic growth: Working together on new and important technologies can lead to more business between India and the US, which can help the economy grow as it will bring more investment and employment opportunities.

    iCET

    Other focus area: Cooperation in defence production

    • The two sides are also focused on cooperation in defence production.
    • While much of this cooperation will need to be fleshed out in the months ahead, Doval and Sullivan announced one concrete measure the making of a fighter jet engine in India.
    • GE Aerospace has applied for an export licence for jet engine production and phased transfer of technology to Indian entities. Washington promises to process this application expeditiously. This fits in nicely with Delhi’s plans to modernise its rusty defence industrial base.

    Conclusion

    • If implemented with speed and purpose, the bilateral Initiative on Critical and Emerging Technologies (iCET) could lend a new strategic depth and breadth to the expanding engagement between India and the United States.

    Mains question

    Q. What is Initiative on Critical and Emerging Technologies (iCET)? Discuss the Importance of iCET especially for India.

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  • Government Budgets

    Budget 2023:Push for Digitisation and Green Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Highlights of Budget 2023 – Schemes and projects for Digitization and Green growth

    Budget

    Context

    • The Union Budget speech by Finance Minister Nirmala Sitharaman on Wednesday highlighted the government’s continuous efforts to push for digitisation in the country. Also the Finance Minister listed ‘Green Growth’ as one of the seven priorities of her Budget.

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    Budget

    Push for digitisation in the country: key highlights

    • Digital Public Infrastructure for Agriculture: It will be an open source, open standard and interoperable public good. The platform will offer inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
    • National Digital Library for Children and Adolescents: This will be established for facilitating the availability of quality books in different languages, genres and at different levels. The government will also try to inculcate a culture of reading by collaborating with NGOs, which will provide age-appropriate reading material to everyone.
    • Centres of Excellence for Artificial Intelligence: There is a proposal for setting up three centres of excellence for Artificial Intelligence in top educational institutions. These centres, in partnership with leading players in the industry, will conduct interdisciplinary research and develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities.
    • National Data Governance Policy: Government will formulate a data governance policy to enable access to anonymised data for innovation and research by start-ups and academia.
    • 5G Services: A hundred labs will be established in engineering institutions for developing applications using 5G services to realise a new range of opportunities, business models, and employment potential.
    • E-Courts: Government will roll out phase three of the E-Courts project to ensure the efficient administration of justice.
    • Bharat Shared Repository of Inscriptions (Bharat SHRI): A digital epigraphy museum will be established and one lakh ancient inscriptions will be digitised in the first stage.
    • Skill India Digital Platform: The digital ecosystem for skilling will be further expanded by launching a unified Skill India Digital platform for enabling demand-based formal skilling, linking with employers including MSMEs and facilitating access to entrepreneurship schemes.

    Budget

    Elements of the Budget’s Green Growth push

    • Green Hydrogen Mission: The recently launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. India aims to reach a target of an annual production of 5 MMT of green hydrogen by 2030.
    • Energy Transition: The Budget has provided Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
    • Energy Storage Projects: To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.
    • Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed.
    • Green Credit Programme: For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.
    • PM-PRANAM: A new PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
    • GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme: 500 new waste to wealth plants under GOBARdhan scheme will be established for promoting circular economy.
    • Bhartiya Prakritik Kheti Bio-Input Resource Centres: Proposal to facilitate over the next three years 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
    • MISHTI: Mangrove Initiative for Shoreline Habitats & Tangible Incomes, MISHTI, will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.
    • Amrit Dharohar: The government will promote their unique conservation values through Amrit Dharohar, a scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
    • Coastal Shipping: Coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
    • Vehicle Replacement: Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy states will also be supported in replacing old vehicles and ambulances.

    Budget

    Conclusion

    • The Union Budget presented by Finance Minister Nirmala Sitharaman outlines the government’s push for digitization and green growth in India. Key highlights suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India.

    Mains question

    Q. Recently Finance Minister Nirmala Sitharaman presented Union Budget 2023. many suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India. Discuss.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Opportunity to unlock the full Potential of MSMEs

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Particulars of MSME sector reforms

    Mains level: MSME significance and challenges

    MSMEs

    Context

    • India overtook the UK as the world’s fifth-largest economy in 2022, and is on track to achieving PM Narendra Modi’s vision of a $5 trillion economy by 2026-27. Despite concerns of a looming global recession, supply disruptions and the Russia-Ukraine war, India has stood out as a bright spot, growing faster than most major emerging markets. The government’s budget for 2023 presents an opportunity to make the Indian MSMEs competitive and self-reliant.

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    MSMEs

    What are MSMEs? How are they defined?

    • Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on:
    1. The investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of and
    2. The investment in equipment for enterprises engaged in providing or rendering of services.

    MSMEs in India at present

    • The 6.3 crore micro, small and medium enterprises which account for 30 per cent of GDP and employ nearly 11 crore people have demonstrated this spirit of resilience.
    • With sales in several industries across the MSME sector reaching 90 per cent of pre-pandemic levels, India’s small businesses are scripting a turnaround.

    MSMEs

    Union budget 2023: An opportunity to make MSMEs more competitive and self-reliant

    • Streamlining input tax credit for e-commerce suppliers: Currently, suppliers selling on e-commerce platforms need to procure input services like logistics, which are taxed at 18 per cent. This leads to precious working capital getting blocked without any visibility of future realisation, potentially discouraging suppliers from adopting e-marketplaces.
    • Adequate working capital for small businesses: From meeting fixed expenses such as electricity, rent and employee wages to investing in future growth, adequate working capital is a must for small businesses.
    • Lowering GST rates on input services: By lowering GST rates on input services availed by online sellers, the government will not only shore up their finances but also give a leg-up to their digitisation journey. Further, refunds of accumulated input tax credit will improve their cash flow situation.
    • Expedited GST relaxation for small online businesses: There is also a need to expedite GST relaxation for small online businesses. In a landmark move last year, the GST Council announced a relaxation of rules for small businesses looking to go online.
    • GST relaxation measures for small online vendors: Among other measures, mandatory GST registration was waived for small online vendors with a turnover of less than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
    • Unlocking the potential of MSMEs through Digitization: With just 10 per cent of our MSMEs currently online, expeditious implementation of these new norms is key to unlocking their full potential. Millions of small businesses are waiting in the wings, hoping to reap the benefits of digitisation such as a much bigger addressable market, increased efficiencies and easier access to capital.
    • The National Logistics Policy (NLP) can also be leveraged to make MSMEs competitive: The NLP aims to bring down logistics costs as a percentage of the GDP from 13-14 per cent to 8 per cent, on par with developed nations. While lower costs will encourage more MSMEs to use tech-powered logistics services, they will need support to tap rising e-commerce demand from smaller towns and semi-rural areas.
    • Indian post and railways can be utilized for cost effective last mile delivery: The government could rope in India Post as a tech-enabled last-mile delivery partner that can facilitate cash-on-delivery transactions at competitive prices. Similarly, the unparalleled reach of Indian Railways can be synergised to ship wares to the remotest parts of the country quickly and cost-effectively.

    MSMEs

    Why the MSME sector is important especially for India?

    • Employment: The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
    • Help building inclusive and sustainable society: It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.
    • For example: Khadi and Village industries require low per capita investment and employs a large number of women in rural areas.
    • Contribution to GDP: With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.
    • Exports: It contributes around 45% of the overall exports from India.

    Conclusion

    • With a visionary government charting out the nation’s growth path, it is anticipated that the budget would certainly deliver on the challenges for MSMEs and take us closer to the dream of an Atmanirbhar Bharat.

    Mains question

    Q. Highlight the significance of MSME’s for India. What more efforts can be taken to make MSMEs more competitive and self-reliant?

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  • Terrorism and Challenges Related To It

    Drugs in the valley: Pakistan’s new weapon to finance terrorism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Drug infiltration for terror financing, and security issues

    valley

    Context

    • With arms and terror infiltration becoming difficult, Pakistan has now resorted to peddling drugs to degenerate the youth of Jammu and Kashmir. Narcotics, Pakistan’s new weapon to finance terrorism within the Valley, has been dubbed the biggest challenge confronting Jammu and Kashmir by Police Chief Dilbag Singh.

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    Background: Pakistan-sponsored terrorism and its impact

    • The culture of violence implemented through constant financial and strategic support to the insurgency in the Kashmir Valley by Pakistan by training and infiltrating weapons and militants impacted society in many ways.
    • Pakistan-backed terrorism destroyed the centuries-old socioeconomic and sociocultural fabric of society.
    • The deaths, mass exodus of Pandits, and increased unemployment eroded the composite way of life and increased boredom, depression, and anxiety among the masses.

    How Pakistan’s designs are failing?

    • Pakistan-sponsored terrorism is at an all-time low in Jammu and Kashmir, three years after the abrogation of Articles 370 and 35A.
    • The number of active militants has fallen from 250 by the end of 2019 to just over 100 by January 2023.
    • Security agencies have tried hard to achieve zero terror activities within the Union territory of Jammu and Kashmir and busted 146 terror modules created by Pakistan in 2022.
    • As a result, Pakistan’s design to create a culture of violence in the Valley endorsed by self-serving and incestuous political elite under the guise of autonomy for the last 30 years is failing.

    valley

    Drug strategy of Pakistan in Kashmir

    • Strategy serves dual purpose for Pakistan: Now, with the people of Kashmir increasingly relinquishing terrorism and a culture of violence, the drug strategy serves dual purposes for Islamabad. One, to attack the core of the social well-being, and two, to finance terrorism within the Valley.
    • Constant infiltration of drugs in the valley: There is a constant infiltration of drugs by Pakistan via the Valley’s Kupwara and Baramulla districts, less-used other drugs such as brown sugar, cocaine, and marijuana are also readily available within the Valley and even in parts of Jammu.

    valley

    Drug addiction in Kashmir

    • Valley is slowly becoming a drug hub: The Kashmir Valley is slowly becoming a drug hub in Northern India, having more than 67,000 drug abusers, of which 90 percent are heroin addicts, using more than 33,000 syringes daily.
    • Emerged as country’s top drug affected region: With 2.5 percent of the population using drugs, Kashmir has emerged as the country’s top-drug-affected region, ahead of Punjab, where 1.2 percent of the population is reportedly addicted to drug abuse.
    • Residents affected: In November 2022, the state-level narcotic coordination committee meeting chaired by the Chief Sectary revealed that at least six lakh residents were affected by drug-related issues in Jammu and Kashmir.
    • Increasing crime rate: Increasing on average, INR 88,000 are spent by a drug abuser in the Valley yearly, increasing Kashmir’s crime rate.

    Reasons for this situation

    • Collapse of age-old social discipline: A significant reason for such an alarming situation is the near-total collapse of the Valley’s age-old informal social discipline and control mechanisms enforced by village elders.
    • Attack on cultural core: Pakistan’s nefarious attack on the Valley’s cultural core has rendered this traditional mechanism of social control ineffective.
    • Few contributes in social degradation: The village elders have also often worked hand-in-glove with Pakistan’s evil designs by remaining silent and endorsing the societal degradation.

    valley

    Jammu and Kashmir police and war against drugs

    • Security agencies have trained their focus on drug peddlers: Security agencies in Jammu and Kashmir are known for anti-terror operations. They have successfully created a synergy with the local administration to sabotage Pakistan’s activities and allied forces within the Valley. With Pakistan-sponsored insurgency receding, the security agencies have trained their focus on drug peddlers.
    • Security agencies in action: In 2022, under Narcotic Drugs Psychotropic Substances (NDPS) Act, the police registered 1,021 cases and arrested 1700 drug peddlers, including 138 notorious peddlers. During the same time, the security agencies seized enormous quantities of contraband, including 212 kilograms of charas, 56 kilograms of heroin, 13 kilograms of brown sugar, 4.355 tonnes of poppy straw and 1.567 tonnes of fukki.
    • Busted narco terror modules: The security agencies also busted many narco-terror modules and arrested 36 persons with huge catches of drugs, arms, ammunition, and money.
    • Investigation revealed drugs smuggled from Pakistan: In December 2022, police busted a Pakistan-based narcotics module and arrested 17 persons, including five police officials and some political activists. Investigations revealed that over five kilograms of narcotics valued at INR 5 crore were smuggled from Pakistan in three months.
    • Launched Nasha-Mukt Bharat Abhiyan: The local administration has also launched the Nasha-Mukt Bharat Abhiyan an initiative started by the Ministry of Social Justice and Empowerment on 15 August 2020 to eradicate the menace of drug addiction in 272 districts across India. This programme has conducted large-scale awareness programmes in colleges, universities, and within communities.

    Way ahead

    • The Kashmiri society needs to have an internal interlocution and take a serious look at Pakistan’s policies to foment trouble, especially through narco-terrorism.
    • Kashmir’s elders and religious leaders through mosques need to get involved in the war against drugs and guide the youth to engage meaningfully with the spate of developmental activities undertaken by the national and Union territory government following the abrogation of Article 370.
    • The government should also initiate and enable public-private partnerships, where local police, military, paramilitary, and citizen bodies act in harmony to make Kashmir free of narco-terror and Pakistan-implemented culture of violence.

    Conclusion

    • With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Creating a working synergy between Kashmir’s traditional and formal social control system can go a long way in addressing the drug menace.

    Mains question

    Q. With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Discuss.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Possibility of global recession?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Current status of global economy and Global recession implications

    recession

    Context

    • There have recently been growing concerns about the global economy slipping into recession. These concerns were primarily triggered by the contraction of the US economy, observed in the first half of 2022. Negative growth in two consecutive quarters is commonly but not officially used as an indication of recession.

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    Background: Status of the US economy

    • First and second quarter of 2022: As reported by the Bureau of Economic Analysis (BEA), the US real Gross Domestic Product (GDP adjusted for inflation) decreased at an annual rate of 1.6 per cent and 0.6 per cent in the first and second quarters of 2022, respectively.
    • Third quarter: In the third quarter, however, the US economy grew by 3.2 per cent, signalling a significant recovery.
    • Fourth quarter: The latest BEA advance estimates show that the US real GDP increased at an annual rate of 2.9 per cent in the fourth quarter.
    • Expansion of US economy a positive sign: Despite the slight decrease from the third quarter, the continued expansion of the US economy at the end of 2022 marks a positive sign, soothing concerns about a recession in 2023.

    recession

    Economic recovery of the US economy

    • Positive growth in fourth quarter: The positive growth in the fourth quarter can primarily be attributed to consumer spending, which increased by an annualised rate of 2.1 per cent, and private inventory investment that showed an upturn in 2022. Although a significant decline from the 5.9 per cent increase in 2021, the difference accounts for the enthused post-Covid economic recovery in 2021.
    • The US labour market continues to remain robust: The unemployment rate was recorded at a low of 3.5 per cent in December 2022, matching the pre-pandemic levels. Also, the total non-farm payroll employment increased by 2,23,000 in December, exceeding the Dow Jones estimate of 2,00,000.
    • Inflation has eased: While the labour market remains tight, US inflation has eased in the last few months. Consumer prices fell 0.1 per cent in December the largest month-over-month decrease since April 2020, due to reductions in motor vehicle and gasoline prices.
    • Layoffs not yet translated into rise in jobless claims: Although not a perfect association, the decline in jobless claims in January shows that the mass layoffs in recent weeks, particularly in the tech sector, have not yet translated into a rise in claims, suggesting the possibility of finding new jobs.
    • The reopening of China’s borders can have positive implications for the global economy: As China resumes its economic activities to pre-Covid levels by boosting growth, domestic consumption is expected to increase significantly. With the ease of trans-border movement and eventual increase in exports of consumer and industrial goods, global trade is expected to strengthen as well.

    recession

    What is Recession?

    • A recession is a significant decline in economic activity that lasts for months or even years.
    • Experts declare a recession when a nation’s economy experiences negative GDP, rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
    • Recessions are considered an unavoidable part of the business cycle or the regular cadence of expansion and contraction that occurs in a nation’s economy.

    Possibility of a global recession

    • Elevated inflation continues to be a cause for global concern: Despite the fall in consumer prices, the headline CPI for the US showed an annual increase of 6.5 per cent in December 2022. In spite of the slow-paced increase in headline CPI, persistent elevation in core inflation excluding food and energy continues to be a major issue across economies.
    • Interest Rate Hikes on the Horizon: Consequently, the central banks are expected to continue with interest rate hikes in the coming months. On an annualised level, the CPI inflation in Australia also jumped to 7.8 per cent in the 2022 fourth quarter, increasing the likelihood of respective interest rate hikes as well.
    • China’s Impact on Commodity Prices: Moreover, an increase in China’s demand for goods post-reopening could drive up commodity prices, thereby creating an inflationary impact. For instance, China’s increased demand for natural gas would mean more competition with the European market, leading to higher commodity prices that can put further inflationary pressures on Europeans already dealing with high energy bills.
    • Higher borrowing costs: Rising interest rates would incur even higher borrowing costs that could dampen consumer spending. While sectors sensitive to high borrowing costs such as housing and construction have slowed down significantly.

    recession

    Conclusion

    • Among the positive signs are the continued expansion of the US economy and the reopening of China’s borders. Rising inflation remains a cause for global concern. However, prevalence of mixed signals suggests that the onset and depth of a global recession in 2023 are not certain.

    Mains question

    Q. Highlight the current situation of global economies. Discuss if there’s a global recession in 2023?

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Its high time to focus on Mental Health

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Mental health problems and solutions

    Mental

    Context

    • Suicides rates in India are amongst the highest when compared to other countries at the same socio-economic level. According to WHO, India’s suicide rate in 2019, at 12.9/1,00,000, was higher than the regional average of 10.2 and the global average of 9.0. Suicide has become the leading cause of death among those aged 15–29 in India.

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    Background: Mental Health

    • While every precious life lost through suicide is one too many, it represents only the tip of the mental health iceberg in the country, particularly among young adults. Women tend to suffer more.
    • Across the world, the prevalence of some mental health disorders is consistently higher among women as compared to men.

    Mental

    Prevalence of Mental ill-health

    • The pandemic has further exacerbated the problem: Globally, it might have increased the prevalence of depression by 28 per cent and anxiety by 26 per cent in just one year between 2020 and 2021, according to a study published in Lancet.
    • Increased among younger age groups: Again, the large increases have been noted among younger age groups, stemming from uncertainty and fear about the virus, financial and job losses, grief, increased childcare burdens, in addition to school closures and social isolation.
    • Use of social media exacerbating the stress: Increased use of certain kinds of social media is also exacerbating stress for young people. Social media detracts from face-to-face relationships, which are healthier, and reduces investment in meaningful activities. More importantly, it erodes self-esteem through unfavourable social comparison.

    Mental

    Socio-economic implications of Mental ill-health

    • People living in poverty are at greater risks: Mental ill health is a leading cause of disability globally and is closely linked to poverty in a vicious cycle of disadvantage. People living in poverty are at greater risk of experiencing such conditions.
    • People experiencing mental health problems likely to fall in poverty: On the other hand, people experiencing severe mental health conditions are more likely to fall into poverty through loss of employment and increased health expenditure.
    • Stigma and discrimination: Stigma and discrimination often further undermine their social support structures. This reinforces the vicious cycle of poverty and mental ill-health.
    • Higher income inequality has high prevalence of ill mental ill health: Not surprisingly, countries with greater income inequalities and social polarization have been found to have a higher prevalence.

    Mental

    Approach to protect, promote and care for the mental health of people?

    • Killing the deep stigma surrounding mental health issues: The first step should be killing the deep stigma which prevents patients from seeking timely treatment and makes them feel shameful, isolated and weak. Stigma festers in the dark and scatters in the light. We need a mission to cut through this darkness and shine a light.
    • Making Mental health an integral part of public health programme: There is need to make mental health an integral part of the public health programme to reduce stress, promote a healthy lifestyle, screen and identify high-risk groups and strengthen interventions like counselling services. Special emphasis will need to be given to schools.
    • Paying attention to highly vulnerable: In addition, we should pay special attention to groups that are highly vulnerable because of the issues such as victims of domestic or sexual violence, unemployed youth, marginal farmers, armed forces personnel and personnel working under difficult conditions.
    • Creating a strong infrastructure for mental health care and treatment: Lack of effective treatment and stigma feed into each other. Currently, only 20-30 per cent of people with such disorders receive adequate treatment.
    • Mental health services should be made affordable for all: Improved coverage without corresponding financial protection will lead to inequitable service uptake and outcomes. All government health assurance schemes, including Ayushman Bharat, should cover the widest possible range.

    Why is the wide treatment gap?

    • One major reason for a wide treatment gap is the problem of inadequate resources.
    • Less than two per cent of the government health budget, which itself is the lowest among all G20 countries, is devoted to mental health issues.
    • There is a severe shortage of professionals, with the number of psychiatrists in the country being less than those in New York City, according to one estimate.
    • Substantial investments will be needed to address the gaps in the health infrastructure and human resources.
    • Currently, most private health insurance covers only a restricted number of mental health conditions. Similarly, the list of essential medicines includes only a limited number of WHO-prescribed medications.

    Mental

    Conclusion

    • We need an urgent and well-resourced whole of society approach to protecting, promoting and caring for the mental health of our people, like we did for the Covid pandemic. Brock Chisholm, the first Director General of WHO, famously said, “there is no health without mental health”.

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  • Foreign Policy Watch: India-Pakistan

    Indus Waters Treaty (IWT) and the disputes

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Indus river system, Indus Water Treaty

    Mains level: Indus Water Treaty, India Pakistan relations

    Indus

    Context

    • India’s January 25 notice to Islamabad seeking modification of the 1960 Indus Waters Treaty is the fallout of a longstanding dispute over two hydroelectric power projects on the western rivers the fully operational Kishenganga on the Jhelum, and Ratle on the Chenab.

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    Indus

    What is Indus Water Treaty (IWT)?

    • The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
    • According to this agreement, control over the water flowing in three eastern rivers of India the Beas, the Ravi and the Sutlej was given to India.
    • The control over the water flowing in three western rivers of India the Indus, the Chenab and the Jhelum was given to Pakistan.

    Basis of the treaty

    • Equitable water-sharing: Back in time, partitioning the Indus rivers system was inevitable after the Partition of India in 1947.
    • Empathizing the Partition: The sharing formula devised after prolonged negotiations sliced the Indus system into two halves.
    • Water does not recognize borders: Underlying the treaty is the principle that water does not recognise international boundaries and upper riparians have a responsibility to lower riparians.

    Indus

    What is the issue?

    • Pakistan’s objection: The Kishenganga was constructed after the Permanent Court of Arbitration in The Hague ruled in India’s favour. But Pakistan continues to object to this and the Ratle dam.
    • Delhi sought to modify: Delhi, reportedly, has sought to modify the treaty after Pakistan refused intergovernmental negotiations on the matter.
    • Stages for resolving disputes: While that is the first stage provided under the treaty for resolving disputes, the next is the request to the World Bank by the aggrieved party for the appointment of a neutral expert. A court of arbitration is constituted as the last resort.

    Significance of the treaty

    • Testimonial to peaceful coexistence: It is a treaty that is often cited as an example of the possibilities of peaceful coexistence that exist despite the troubled relationship. The IWT is the only agreement between India and Pakistan that has stood the test of time, through wars and terrorism.
    • Survived many hostilities: It has survived 3 crucial wars.
    • Most successful bilateral treaty: It is internationally regarded as an example of successful conflict resolution between two countries otherwise locked in a hostile relationship.

    Indus

    India and Pakistan’s POV

    • While the treaty does provide for modification from time to time, it has to do so by means of a duly ratified treaty concluded for that purpose between the two Governments.
    • More likely, the issue will fester and grow into another active pressure point in India-Pakistan relations.
    • On the Pakistani side, accusations are made with increasing frequency that India has turned off the water, and on this side, the view is growing that India was been too generous in the IWT.
    • Prime Minister Narendra Modi’s remark in the aftermath of the 2016 Uri attack that “blood and water cannot flow together”, even though how this threat might be implemented is not clear as it would be plain dangerous to build big dams to stop the western rivers from flowing across the LoC in a seismologically active region.

    Conclusion

    • Using water as a weapon is never a good idea. It would be so much better for both countries to treat the IWT as an instrument for collaboration on climate action in the fragile Himalayan region.

    Mains question

    Q. What is Indus water treaty? Discuss the significance of IWT and highlight some of the issues.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Layoff and the conditions for retrenchment

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Layoffs, reasons and impact, Industries, Employment and economy

    Layoff

    Context

    • Last year, around 1,60,000 workers in the tech industry were laid off globally. In contrast, in just this month alone some 60,000 tech workers have been laid off till now. On the back of a gloomy global economic outlook and prospects of a possible recession, tech firms across the world from US-based giants like Alphabet, Amazon and Meta to early-stage startups have engaged in large-scale retrenchments.

    What is means by Lay-Off?

    • A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance.
    • Employees may be laid off when companies aim to cut costs, due to a decline in demand for their products or services, seasonal closure, or during an economic downturn.
    • When laid off, employees lose all wages and company benefits but qualify for unemployment insurance or compensation (typically in USA).

    Inflation after strong recovery of the global economy: Two factors

    • Outpaced demand: Buoyed by extraordinary pandemic relief support to households, aggregate demand in advanced economies outpaced supply.
    • Supply chain disruption as a result of Russia- Ukraine war: the armed conflict between Russia and Ukraine caused supply-chain disruptions, leading to global inflationary pressures for food and fuel. In response, the US Federal Reserve has rapidly hiked rates.

    Layoff

    Layoff drive in India

    • Lay-offs in India: As multinational firms seek to cut their payroll figures worldwide, this lay-off drive has made its way to India as well.
    • Impact on Indian workers: Indian workers, including expatriates and local employees, in both the traditional IT sector and the tech-based startup sector have been affected.
    • Slowdown in funding in 2022: Despite a strong start, funding in India began to slow down in 2022, with third-quarter funding falling to a two-year low.
    • Rising interest rates and cost of capital: Rising interest rates have meant that the cost of capital has increased and venture capitalists have to be more selective about how they deploy funds in this funding winter.
    • Restructuring and cost-cutting for Indian tech startups: Indian tech startups are under pressure to cut costs and restructure their businesses in search for profitability. As a result, startups, including unicorns have engaged in broad-based retrenchments.

    Retrenchment conditions according to Industrial Disputes Act

    • One month notice with reasons is must: Employers must give a one-month notice with reasons for retrenchment to workers who have been in continuous service for at least a year.
    • Must provide compensation: Employers must give retrenchment compensation.
    • Notice shall be served: A notice in the prescribed manner must be served on the appropriate government.
    • Principle of last come first go shall be followed: Employers must follow the principle of last come, first go while retrenching employees.

    Layoff

    Concerns for contract workers

    • Employers often skirt legal requirements by asking for voluntary resignations to remain outside the scope of retrenchment provisions.
    • In any case, these mandates only apply to non-managerial employees; managerial employees are governed by their employment contracts.
    • There are no similar protections available to gig or contract workers.

    Conclusion

    • Even as India seeks to lead a digital and technologically-driven world, it is important to note that the tech sector is not immune to harsh macroeconomic realities. It is crucial for the government and private sector to work together to mitigate the impact of layoffs on workers and to ensure that the industry continues to grow and create opportunities for all.

    Mains question

    Q. Layoffs have been frequently reported in the news recently. In this context, briefly explain the term layoffs and discuss the factors contributing to them? Highlight the impact of layoffs in India.

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  • Citizenship and Related Issues

    Census: A prerequisite for economic development

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Census

    Mains level: Census importance, challenges and implications of postponing

    Census

    Context

    • India aspires to be a $10 trillion economy by 2035. To achieve this, conducting population Census, due in 2021 but postponed indefinitely because of Covid, is necessary. Such data is essential for planning at the village or block level to usher in economic and social development, ensure better governance, and increase the transparency of public schemes and programmes.

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    What is a census?

    • It is nothing but a process of collecting, compiling, analysing, evaluating, publishing and disseminating statistical data regarding the population.
    • It covers demographic, social and economic data and is provided as of a particular date.

    Census

    What is the purpose?

    • To collect the information for planning and formulation policies for Central and the State Governments.
    • The census tells us who we are and where we are going as a nation.
    • It helps the government decide how to distribute funds and assistance to states and localities.
    • The census data is widely used by National and International Agencies, scholars, business people, industrialists, and many more.

    Why conducting a Census has become a prerequisite for economic development?

    • Lack of complete civil registration system: Since many states (and districts) lack a complete civil registration system with a full count of birth and death data, demographers face enormous challenges in providing population counts at the district level. In several instances, estimates tend to be far off the mark, especially for newly formed districts and states.
    • Changing pattern of migration: migration data collected in the Census has great implications for economic activities and social harmony. As India progresses economically, the pattern of migration has been changing in unprecedented ways. The migration pattern in India in the present decade is very different from what the data in Census 2001 and 2011 suggest. Hence, in the absence of updated data, it is difficult to draw conclusions about migration in India.
    • Other surveys does not provide comprehensive data: The Census counts everyone across regions, classes, creeds, religions, languages, castes, marital status, differently-abled populations, occupation patterns etc. Most national-level surveys such as NFHS and NSSO do not have representative data at the population subgroup level, unlike the former. The existence of numerous faiths and languages as well as the expansion or extinction of such communities will be known only via population Census.

    Census

    In the absence of it how demographers collect data?

    • Estimates using past census information: In the absence of updated data, demographers estimate the annual population count at the district level using past Census information for the intercensal or postcensal period. Say, to estimate the population of a district in India in the year 2015, they use the district-level population growth rate between the 2001 and 2011 Census.
    • Such estimates are fair for maximum of 10 years: Such demographic exercises give reasonably fair estimates when the year of population estimation is within the range of a maximum of 10 years. Beyond this period, estimations can be erroneous, particularly at the district level due to dynamic patterns of population components, among them fertility, mortality and migration.
    • Assumptions based model in faster demographic transition: Many districts of India are experiencing a faster demographic transition with varying fertility and mortality rates. So, using the growth rate of 2001-2011 for the period after 2021 becomes more of an assumption-based model than a model that reflects empirical reality. Covid-19 further makes the situation complex as it impacts the fertility and mortality situation in the country.

    Demand for caste census in India

    • India’s population has since increased three-fold to 1.21 billion in 2011.
    • Experts believe the economic status of the dominant OBC castes have improved in the past 80 years and certain castes have not benefited as much.
    • So, the new caste census is required to measure the economic and social well-being of all castes.

    Census

    History and a Way ahead

    • India has a long history of conducting Census without interruption from 1881 with the rare exception of Assam in 1981 and Jammu Kashmir in 1991 due to socio-political unrest and secessionist movements.
    • Conducting it regular at the national and sub-national levels has been a matter of pride for India.
    • It has to be continued until India achieves a fool-proof civil registration system and a dynamic National Population Register.

    Conclusion

    • Conducting the population Census is a mammoth task, of course. Full involvement of the government system is necessary to organise it. But the it is necessary since it forms the basis of all the plans and programmes that the government wants to implement. Postponing the it has immediate and long-term negative consequences for India. The government and other stakeholders should take urgent steps to conduct the Census as early as possible.

    Mains question

    Q. What is census? Why conducting a Census has become a prerequisite for economic development and also discuss the impact of delayed census.

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