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  • Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

    Boosting India’s Cotton Production

    op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Cotton crop,Voluntary Sustainable Standards (VSS)

    Mains level: Paper 3- Textile industry,Voluntary Sustainable Standards (VSS)

    IndiaContext

    • Cotton, one of the most important crops, has a strategic role in India’s international agriculture play. India is the world’s third-largest exporter of cotton and the second-largest exporter of textiles, therefore, also contributing significantly to the country’s economy.

    All you need to know about the Cotton crop

    • Rainfall and Temperature: Sensitive to timing of rainfall and rainfall during harvest might lead to crop failure. Temperature required is around 20-30 degree c., while rainfall is about 75-100cm.
    • Soil: Black soil ideally suited for cotton cultivation as it is rich in lime.cotton is vulnerable to pest attack.
    • Humidity: Cotton cultivation requires more than 200 frost free days. Humidity during harvest is harmful.
    • Oilcake: The cotton seeds are crushed for oil and the oilcake is an important animal fodder and also used as farm manure.

    India

    What is the Present status of cotton in India?

    • India holds a 4% share of the U.S.$840 billion global textile and apparel market
    • India has been successful in developing backward links, with the aid of the Technical Upgradation Fund Scheme (TUFS), in the cotton and technical textiles industry.
    • However, India is yet to move into man-made fibres as factories still operate in a seasonal fashion.
    • Areas of cotton cultivation are Gujrat, Maharashtra, Telangana, Punjab, etc.

    Do you know?

    The latest archaeological discovery in Mehrgarh puts the dating of early cotton cultivation and the use of cotton to 5000 BCE. The Indus Valley civilization started cultivating cotton by 3000 BCE. Cotton was mentioned in Hindu hymns in 1500 BCE.

    IndiaWhat are the voluntary sustainable standards (VSS) in cotton?

    • Voluntary Sustainability Standards (VSS):  Voluntary Sustainability Standards (VSS), which encapsulate certification schemes, labelling programmes, and private standards. The major VSS that are dominant in the sustainable cotton value chain today include Better Cotton Initiative (BCI), Organic Cotton, Fair trade Cotton, and Cotton Made in Africa.
    • To achieve sustainable Goal: The global textile supply chain is undergoing a paradigm shift; it is pursuing environmental and social upgradation to meet the sustainability requirements imposed by global textile and home furnishing retailers, so as to mitigate the adverse impacts of climate change on cotton farmers and cotton cultivation.

    What are the benefits of VSS for India?

    • Enhance position in global cotton supply: Adapting to VSS is clearly beneficial for India. On the one hand, it will help it remain globally competitive in the cotton supply chain and strengthen its position in the export market, while on the other, it will help meet India’s SDG commitments.
    • Takes India a step closer towards sustainable farming: India has made considerable progress in its transition towards a more sustainable cotton farming ecosystem. The total cotton area under VSS has reached 1.5 million hectares, contributing to 24 percent of the global VSS cotton area.
    • Increases organic production of cotton: With approximately 0.2 million hectares of area for production, it is the largest producer of organic cotton, accounting for 50 percent of global organic cotton production, and the second-largest producer of ‘Better Cotton’, accounting for 16.5 percent of total Better Cotton production covering an area of 1.5 million hectares.
    • Higher yeild: According to the BCI’s 2020 Impact Report for India, Better Cotton farmers have 9 percent higher yields and 18 percent higher profit than conventional farmers.
    • Eco friendly production:The Thinkstep report 2018 on the Life Cycle Assessment of VSS Cotton conducted in Madhya Pradesh revealed a reduction of 50 percent in climate change impact, 59 percent in blue water consumption, 84 percent in ecotoxicity, and 100 percent eutrophication in organic over conventional cotton.
    • To achieve SDG Targets: The VSS cotton growth story in India has already demonstrated its contribution towards the achievement of SDG targets for Zero Hunger (Goal 2), Clean Water and Sanitation (Goal 6), Responsible Consumption and Production (Goal 12), Life on Land (Goal 15), and Climate Action (Goal 16).
    • NITI Aayog’s Assessment: VSS cotton delivers real, measurable outcomes according to priority indicators as outlined by NITI Aayog which maps India’s SDG goals. These indicators include changes in the extent of water bodies, improving groundwater withdrawal against availability, and rationalising nitrogen fertiliser.

    IndiaConclusion

    • India must scale up the VSS while aligning it with its SDG commitments since VSS in cotton ensures a better production system, sourcing methods, and consumption patterns while also influencing the lives of hundreds of millions.

    Mains Question

    Q. What are the Voluntary Sustainable Standards (VSS)? Cotton production can be boosted in India using VSS method. Elaborate.

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  • ISRO Missions and Discoveries

    India’s Dark Sky Reserve

    op-ed snap | Science Tech | Mains Paper 3: Achievements Of Indians In S&T,Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Dark Sky Reserve

    Mains level: Science tourism

    Dark Sky ReserveContext

    • The union territory of Ladakh will host India’s first Dark Sky Reserve which will be set up in Hanle area in the next three months. The Dark Sky Reserve is being built as part of Ladakh’s high-altitude Changthang Wildlife Sanctuary.

    What is Dark Sky Reserve (DSR)?

    • Definition of Dark Sky Reserve: The International Dark Sky Association (IDSA) defines an international dark sky reserve (IDSR) as “a public or private land of substantial size (at least 700 km², or about 173,000 acres) possessing an exceptional or distinguished quality of starry nights and nocturnal environment, and that is specifically protected for its scientific, natural, educational, cultural heritage, and/or public enjoyment.

    What is Core Area of Dark Sky Reserve?

    • A dark sky reserve requires a “core” area that has clear sky without any light pollution, which can enable telescopes to see the sky in its natural darkness.

    Dark Sky Reserve

    Why Ladakh is chosen as ideal location for DSR?

    • Ladakh is ideal for long-term observatories and dark-sky sites because of its large arid area, high elevation, and sparse population, extreme cold and minimum temperature drops to minus 40 degree celcius.
    • The Changthang wildlife Sanctuary, the DSR site is situated around 4,500 metres above sea level, which makes it a perfect host for telescopes.

    Who is managing India’s DSR?

    • The Department of Science and Technology and Indian Institute of Astrophysics (IIA) in Bengaluru are providing support for the facility. The IIA already manages the Indian Astronomical Observatory (IAO) complex in Hanle, Ladakh.

    What are the International standards for DSR?

    • International Dark Sky Association’s Recognition: The IDSA recognizes and accredits dark-sky areas worldwide, in three categories. The Mont Mégantic Observatory in Quebec is the first such site to be recognized (in 2007) as an International Dark Sky Reserve.
    • Categorical Certification: Individuals or groups can nominate a site for certification to the International Dark Sky Association (IDSA). There are five designated categories, namely International Dark Sky parks, communities, reserves, sanctuaries and Urban Night Sky Places.
    • Global Recognition: The certification process is similar to that of a site being awarded the UNESCO World Heritage Site tag or getting recognised as a Biosphere Reserve. Between 2001 and January 2022, there have been 195 sites recognised as International Dark Sky Places globally, the IDSA said.
    • Dark Sky Park: IDSA recognized Natural Bridges National Monument in Utah as the world’s first International Dark Sky Park.
    • Dark Sky Sanctuary: In 2015, the IDSA introduced the term “Dark Sky Sanctuary” and designated the Elqui Valley of northern Chile as the world’s first International Dark Sky Sanctuary. The Gabriela Mistral Dark Sky Sanctuary is named after a Chilean poet.

    Dark Sky ReserveWhat is India’s objective with DSR?

    • To promote AstroTourism: The primary objective of the proposed Dark Sky Reserve is to promote astronomy tourism in a sustainable and environment-friendly manner. Scientific methods will be used here to preserve the night sky from ever-increasing light pollution.
    • To offer clear skies for observations: With metros, cities and peripheral areas experiencing light pollution and remaining constantly lit up, there are diminishing areas that offer a view of clear skies on cloudless nights.
    • For training purpose: In the pilot phase, the Indian Institute of Astrophysics (IIA),has procured ten small and easy-to-handle telescopes and light-reflecting shields. IIA’s scientists and outreach experts will identify locals and train them to use these telescopes.
    • Sky gazing and a boost for village economy: This will include basic sky gazing, identification of constellations, and locating the pole star, among others. These telescopes will be installed at the homestays, which is a popular option for tourist accommodation in Ladakh.

    Dark Sky ReserveConclusion

    • The Dark Sky Reserve is likely to boost Astro tourism in India where there has been no such reserve. Once set up, the reserve will be the highest-located site in the country for infrared, gamma-ray, and optical telescopes.

    Mains Question

    Q. What are the Dark Sky Reserves? How DRS will help in astronomical research and observations in India?

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  • Electoral Reforms In India

    Classifying Merit and Non merit Freebies

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Paper 2- Freebies issue

    FreebieContext

    • The debate that began with an RBI 2022 report on state finances followed by Prime Minister Narendra Modi’s comment on revdi culture aka freebies, has garnered substantial attention so much so that the Supreme Court is hearing on this issue. Freebies have now assumed more importance than ever.

    What are freebies?

    • Freebies could be defined as non-merit subsidies. The term Freebies is not new; rather it is a prevalent culture in Indian politics (in the name of socialism).
    • The political parties are always trying to outdo each other in luring the Indian voters with freebies.

    What are Subsidies?

    • Subsidies are money transfers (implicit or explicit) by the government in an attempt to drive prices artificially below market prices.
    • As a National Institute of Public Finance and Policy (NIPFP) study by Sudipto Mundle and Satadru Sirkar puts it, budget subsidies, in particular, are defined as the unrecovered cost of economic and social services.
    • However, all subsidies cannot be easily classified into merit or non-merit.

    FreebieWhat are the objectives behind providing freebies?

    • Welfare state: It could be said that providing freebies empowers the state to, first, deliver welfare as a welfare state should, by providing subsidised merit goods like health and education;
    • Combating poverty: To help households combat poverty (especially in economically stressed times characterised by fewer job opportunities, lower incomes, high inflation, etc.) by providing subsidised public goods like food, electricity, etc.
    • Populist spending: To appeal to the electorate through outright populist spending.

    Question of classification between a merit and a non-merit freebies?

    • Blur Boundary: The boundaries between the aforementioned objectives begin to blur when it comes to classifying one form of freebie as a merit or a non-merit subsidy.
    • Few examples: Are corporate tax cuts non-merit subsidies or a measure to boost investment? 2. Is making bus rides free for women in the national capital a non-merit subsidy or a way to boost women’s mobility and labour-force participation? 3. Are free laptops to students in Tamil Nadu not a way to bridge the digital divide in education?
    • Varying definition: The existing arguments develop an understanding that freebies cannot be defined in a finite context, and that the definition varies across space and economic conditions.

    FreebieHow freebies impact revenue of the state?

    • Adverse impact on revenues: Regardless of which one gets classified as good or bad, freebies are simply expenditures or foregone revenues. Any freebie-induced debt burden could have an adverse effect on the state finances if, one, it hasn’t been properly accounted for through transparent budgeting procedures (including off-budget borrowings in debt calculations)
    • Increase in Fiscal deficit: Either way, they lead to an increase in fiscal deficit whose financing could necessitate taking on debt. It threatens fiscal sustainability, i e, it limits the state’s ability to service its debt-related commitments without making an unrealistic fiscal adjustment.
    • Lack of data leading to leakages: The targeting of beneficiaries to ease the burden on the exchequer is one way to check these expenditures but lack of data has forced a situation wherein leakages and duplication of beneficiaries is commonplace.
    • Jeopardises long-term growth and development: In the absence of adequate avenues of revenue mobilisation, any fiscal adjustment achieved by contracting critical expenditures on the social sector and capital formation further jeopardises long-term growth and development. The emanating risk of fiscal sustainability means a “revdi” today would take a toll on tomorrow’s generation.

    What could be the solution?

    • Setting up an independent fiscal council: Setting up an independent fiscal council that has been recommended by the FRBM Review Committee (2017), and recently constituted Finance Commissions too, including the 15th Finance Commission.
    • Providing information and advisory: FRBM report says, the council will serve both an ex-ante role providing independent forecasts on key macro variables like real and nominal GDP growth, tax buoyancy, commodity prices as well as an ex-post monitoring role, and also serve as the institution to advise on triggering the escape clause and also specify a path of return.
    • Monitoring finance: Such a council should work for the union as well as the states. Monitoring of finances and fiscal rules could also help ensure that states comply with a medium-term fiscal policy framework, which has been long argued for by economists.

    FreebieConclusion

    • Freebies cannot be defined easily, and constitutionally, any state government should be empowered to spend the way it wants, provided the fiscal policy is sustainable. The message from the freebies debate is to make informed economic decisions whilst attending to key development objectives.

    Mains Question

    Q. There is nothing wrong in having social security programme that aims to lift the poor get out of poverty and empower the vulnerable sections of the society. In this context, where do you see the goal of sustainable economic development? Comment.

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

    Moonlighting: Overemployment or Underpayment

    op-ed snap | Economics | Mains Paper 3: Issues relating growth and development, employment

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: what is moonlighting.

    Mains level: Impact of moonlighting on comapnies and employment.

    MoonlightingContext

    • In July, Kotak Securities said in a study that at least 60% of 400 employees surveyed said they themselves had, or knew someone who had engaged in moonlighting.

    What is mean by moonlighting?

    • Moonlighting is a state where employees work for remuneration with entities other than their employers. It is not defined in any of the statutes in India. However, there are enactments that deal with double employment.

    MoonlightingHow does it affect companies and what are latest examples?

    • Wipro: According to Wipro CEO, there is a lot of chatter about people moonlighting in the tech industry. This is cheating plain and simple. The company sacked 300 employees following the discovery that they were working for rival firms on the side, leading to conflict of interest.
    • Infosys: Infosys has warned staff against moonlighting, saying it could lead to termination.
    • Effect of WFH: Another software firm DXC Technologies said that moonlighting by employees was a challenge for employers but that wouldn’t affect its WFH (work from home) policy that has worked well for both the firm and its staff.
    • Moonlighting policy: Swiggy announced a moonlighting policy’ that allows employees to pursue their passion for economic interests alongside their fulltime employment.”

    MoonlightingWhat is the Legal status of moonlighting?

    • Factory act: Section 60 of the Factories Act deals with restriction on double employment stating that “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed. However, this enactment is applicable only to employees working in factories.
    • The Tamil Nadu Shops & Establishments Act, 1947: There are State enactments which deal with employment of persons working in offices, banks, shops, etc. In Tamil Nadu, it is termed as The Tamil Nadu Shops & Establishments Act, 1947. However, there is no provision wherein dealing with dual employment.
    • Glaxo Laboratories (I) Limited vs Labour Court, Meerut and others: The apex court held that “The employer has hardly any extra territorial jurisdiction. He is not the custodian of general law and order situation or the Guru or mentor of his workmen for their well-regulated cultural advancement. If the power to regulate the behaviour of the workmen outside the duty hours and at any place wherever they may be was conferred upon the employer, contract of service may be reduced to contract of slavery.” This case was not specifically about moonlighting but the court’s observation gives us an idea as to how the law may view such cases.

    MoonlightingWay forward

    • More earning: The Minister of State for Skill Development and Entrepreneurship, and Electronics and IT, said that employers should not to suppress employees who want to monetise, develop and demonstrate but also urged employees not to violate their agreements with employers.
    • Working hours: Moonlighting is subject to law of the land. The sphere of employment cannot be extended by the employer beyond working hours and outside his place of employment.
    • Socialistic view: The Courts of law in India dealing with employment are Writ Courts and Labour Courts, which exercise jurisdiction based on equity or fairness. Therefore, the Courts may lean in favour of the employee unless the contravention of the employee has led to serious prejudice and loss to the employer

    Conclusion

    • Employees are not the slaves of employers. What they do beyond the working hours is none of the business of employer unless it affects company financially or causes substantial damage to business. Government should bring the legal statute to regulate moonlighting and prevent the unjustified punishment of employees.

    Mains Question

    Q. What is moonlighting? Why employees do moonlighting? Discuss the legal framework about moonlighting in India.

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  • Corporate Social Responsibility: Issues & Development

    Corporate Social Responsibility(CSR) & Social Justice

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: CSR

    Mains level: corporate governance

    SocialContext

    • Since the establishment of the Corporate Social Responsibility (CSR) regime in India under Section 135 of the Companies Act 2013, CSR spending in India has risen from RS.10,065 crore in 2014-15to Rs.24,865crore in 2020-21.But there is no data to verify whether this increase is commensurate with the increase in profits of Indian and foreign (having a registered arm in India) companies.

    What is Corporate Social Responsibility (CSR)?

    • Voluntary spending: Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices.
    • Ministry Corporate Affairs: The National Corporate Social Responsibility Data Portal is an initiative by Ministry of Corporate Affairs, Government of India to establish a platform to disseminate Corporate Social Responsibility related data and information filed by the companies registered with it.
    • Companies Act, 2013: The Corporate Social Responsibility concept in India is governed by Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014 wherein the criteria has been provided for assessing the CSR eligibility of a company, Implementation and Reporting of their CSR Policies.

    Social

    How CSR helps in achieving social justice?

    • Sustainable Goals: India having the most elaborated CSR mechanism and implementation strategy has started its journey to set a benchmark in attaining sustainability goals and stakeholder activism in nation building.
    • Corporate philanthropy: company donations to charity, including cash, goods, and services, sometimes via a corporate foundation.
    • Community volunteering: company-organized volunteer activities, sometimes while an employee receives pay for pro-bono work on behalf of a non-profit organization
    • Socially-responsible business practices: ethically produced products that appeal to a customer segment.
    • Corporate social marketing: Company-funded behaviour-change campaigns, Company-funded advocacy campaigns, donations to charity based on product sales.

    Why there is need to review the CSR?

    • Declining number: There was also a decline in the number of companies participating in CSR 25,103 in FY2019 to 17,007 in FY2021.
    • Flaw in the law: If a company spends an amount in excess of the minimum 2%, as stipulated, the excess amount is liable to be set off against spending in the succeeding three financial years. Ideally, companies should have been shown courage to spend more than this.
    • Own trusts: many private companies have registered their own foundations/trusts to which they transfer the statutory CSR budgets for utilisation. It is unclear if this is allowed under the Companies Act/CSR rules.
    • Geographical bias: The first proviso to Section 135(5) of the Act is that the company should give preference to local areas/areas around it where it operates. This is logical. However, a report by Ashoka University’s Centre for Social Impact and Philanthropy says that 54% of CSR companies are concentrated in Maharashtra, Tamil Nadu, Karnataka, and Gujarat(receiving the largest CSR spends) while populous Uttar Pradesh and Madhya Pradesh receive little.
    • Spending on environment: Item (iv) of Schedule VII of the Act deals with broader environmental issues to create a countervailing effect. However, an analysis of CSR spending (2014-18)reveals that while most CSR spending is in education (37%) and health and sanitation (29%), only 9% was spent on the environment even as extractive industries such as mining function in an environmentally detrimental manner in several States
    • Incomplete information: The Standing Committee on Finance had observed that the information regarding CSR spending by companies is insufficient and difficult to access. As per the ‘Technical Guide on Accounting’ issued by the Institute of Chartered Accountants of India, a company is only required to mention its CSR spends, non-spend, under-spend, and overspend in the ‘Notes to Accounts’.

    SocialWhat are the suggestions to improve the mechanism of CSR?

    • Centralized platform: There is a need to curate a national level platform centralised by the MCA where all States could list their potential CSR admissible projects so that companies can assess where their CSR funds would be most impactful across India with, of course, preferential treatment to areas where they operate.
    • India Investment Grid: Invest India’s ‘Corporate Social Responsibility Projects Repository’ on the India Investment Grid (IIG) can serve as a guide for such efforts. This model would be very useful for supporting deserving projects in the 112aspirational districts and projects identified by MPs under the Government’s Sansad AdarshGram Yojana.
    • Increase environment spending: Companies need to prioritise environment restoration in the area where they operate, earmarking at least 25% for environment regeneration.
    • Public participation: All CSR projects should be selected and implemented with the active involvement of communities, district administration and public representatives.
    • Transparency: Recommendations by the high-level committee in 2018 should be incorporated in the current CSR framework to improve the existing monitoring and evaluation regime. These include strengthening the reporting mechanisms with enhanced disclosures concerning selection of projects, locations, implementing agencies, etc.; bringing CSR within the purview of statutory financial audit with details of CSR expenditure included in the financial statement of a company, and mandatory independent third party impact assessment audits.
    • Monitoring by government: The MCA and the line departments need to exercise greater direct monitoring and supervision over CSR spend by companies through the line ministries (for public sector undertakings) and other industry associations(for non-public units) instead of merely hosting all information on the Ministry’s website.

    SocialConclusion

    • Corporate social responsibility is an effective tool to address the social and income inequality. Present legal arrangements are toothless and based on voluntary actions. For an effective change CSR spending should be made more transparent and accountable.

    Mains Question.

    Q.Present arrangement of CSR is not yielding the desired result. Enlist the current weakness in CSR spending Suggest the changes needed for efficient implantation of CSR.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    India’s Rice Exports and food Insecurity

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues

    ExportsContext

    • On August 8, India banned the exports of broken rice and imposed a 20 per cent duty on the exports of various grades of rice amid high cereal inflation and uncertainties with respect to domestic supply.

    Background

    • This is surely not the first time an attempt is being made to ban wheat and rice exports.
    • It was also done in 2007-08, in the wake of the global financial crisis.
    • Perhaps government will also impose stocking limits on traders for a host of commodities, suspend futures trading in food items, and even conduct income tax raids on traders of food.

    Exports

    What is the current status of rice in India?

    • World’s largest rice exporter: India has exported more than 20 MT of rice worth a record $9. 6 billion to more than 150 countries in 2021-22.It has been the world’s largest rice exporter of the grain in the last decade and has a share of around 44% global trade.
    • Likely to fall in production: India’s rice production is likely to decline by 6 per cent t to 104.99 million tonnes in the kharif season due to a fall in paddy acreage amidst rainfall deficit in key producing states, including Jharkhand, Madhya Pradesh and West Bengal.
    • Kharif season: Sowing in the kharif season begins with the onset of the southwest monsoon from June and harvesting from October onwards .About 85 per cent of India’s total production comes from this season.
    • Deficient rainfall: West Bengal, the biggest rice producer amongst states, has received deficient rainfall in 15 of its 23 districts, raising the likelihood of crop loss. Uttar Pradesh, the second biggest producer of rice has received 42% less rainfall than benchmark. The rainfall deficiency in the other eastern states Bihar (-34%) and Jharkhand (-48%).
    • Depleting stocks: There are concerns about rice stocks with the Food Corporation of India (FCI) depleting to a 10-year low level by April, 2023 year, if the free ration scheme is extended to the second half of the financial year. The government may have to impose some curbs on rice exports though minimum export price or an export tax if the scheme is extended.

    Why India’s rice export ban is cause for worry?

    • Thin world rice market and the impact on prices: Given that 90 per cent of production is consumed domestically, As a result, any small change in exports and imports has an enormous impact on prices, especially if it leads to panic buying of food grains by rich countries.
    • Limited Import option: The stakes are higher as it is India’s largest agricultural crop. Unlike with wheat, the options for import in rice due to any production shortfall are limited, when India’s own share in the global trade of the cereal is more than 40%.
    • Affect the credibility: The export uncertainties will affect the credibility of Indian exporters, create a disincentive for future exports, and will enable buyers to shift towards other major rice-exporting countries.
    • Affect a section of farmers: Though Indian farmers in general lack market access, and hence do not take advantage of high market prices, the fall in prices may adversely affect a section of farmers who hope to get a better price for their produce through exports. The exporters who face the burden of the unfeasibility of exports may pass it on to farmers in the form of lower prices during procurement.
    • Affect low-income and low middle-income Countries: India’s export restrictions will adversely affect several low-income and low-middle-income countries like Bangladesh, Senegal, Nepal and Benin, which are among the largest importers of Indian rice.
    • Domestic prices and to safeguard food security: Frequent changes in export policies undoubtedly have long-term ramifications on domestic prices

    Exports

    What are the Issues in India’s rice export strategy?

    • Highest ever volume: India exported the highest-ever volume of 21 million metric tonnes (MMT) of rice in 2021-22 (FY22) in a global market of about 51.3 MMT, which amounts to about 41 per cent of global exports.
    • Reduced price: Such large volumes of rice exports brought down global prices of rice by about 23 per cent in March (YoY), when all other cereal prices, be it wheat or maize, were going up substantially in global markets. In fact, in FY22, the unit value of exports of common rice was just $354/tonne, which was lower than the minimum support price (MSP) of rice.
    • Below MSP buying or leakage from PMGKAY: This meant that rice exporters were either buying rice (paddy) from farmers and millersat below the MSP or that quite a substantial part of rice was given free under the PM Garib Kalyan Ann Yojana (PMGKAY) was being siphoned away for exports at prices below MSP.
    • Artificial competitive advantage: Free electricity for irrigation in several states, most notably Punjab, and highly subsidised fertilisers, especially urea, create an artificial competitive advantage for Indian rice in global markets.

    Problems with India’s rice cultivation

    • Lower yield: India’s rice yield is lower than the world average. However, India’s yield is better than Thailand and Pakistan but worse than Vietnam, China and the US.
    • Higher cost of cultivation and price support: The cost of cultivation in India is also increasing, and hence there will be a need for a higher MSP to make production remunerative. This will exacerbate the pressure to re-think its price-support-backed food security mechanism.
    • Water-intensive nature: India’s rice production likely to fall amidst the shortfall of rainfall in major rice producing states and increasing salinity of soil because of over usage of water. The water-intensive nature of rice cultivation, along with frequent export restrictions will adversely affect the long-run sustainability of rice production. In India, around 49 per cent of rice cultivation depends on groundwater which is depleting rapidly.

    ExportsWhat is the link between Rice cultivation and groundwater depletion?

    • Ground water depletion: In India, around 49 per cent of rice cultivation depends on groundwater which is depleting rapidly.
    • Food and Agriculture Organization (FAO) data: As per the latest data available from the Food and Agriculture Organization (FAO), agricultural water withdrawal as a percentage of total available renewable water resources has increased from 26.7 per cent in 1993 to 36 per cent in 2022.
    • Virtual water trade (VWT): Rice exports are leading to an indirect export of water to other countries a phenomenon known as virtual water trade (VWT). The relative per capita water availability in India is lower than a majority of its major importing countries. The other major exporters of rice, such as Thailand and Vietnam, also have better per capita water availability in comparison to India.
    • Renewable water resources: Out of 133 countries in which India has positive net rice exports, only 39 countries have relatively lower per capita renewable water resources. Out of these 39 countries, 12 countries are high-income countries with the ability to buy food at a higher price.

    Conclusion

    • Depletion of groundwater resources and rising cost of cultivation may threaten rice production in the future. Adequate water saving measures in the form of widespread adoption of water saving practices like System of Rice Intensification (SRI) need to be taken to keep input requirements, costs and production sustainable.

    Mains question

    Q.As many developing countries depend on Indian rice, rice export restrictions have raised food security concerns in the global market. In this context discuss the causes and effects of India’s restrictions on rice export.

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  • Governor: 1st essential part of State Legislature

    op-ed snap | Polity | Mains Paper 2: Federalism,Parliament & State Legislatures

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Role of Governors in State

    Mains level: Issues with role of Governor

    GovernorContext

    • In Tamil Nadu, the Governor forwarded the Bill for exemptio from the National Eligibility cum Entrance Test (NEET) to the President after considerable delay.
    • In Kerala the situation has become a bit curious with the Governor publicly announcing that he would not give assent to the Lokayukta Amendment Bill and the Kerala University Amendment Bill. Such actions by Governors throw the legislative programmes of governments out of gear because of the uncertainty surrounding the assent.

    What is Role of Governor in Legislature?

    • Integral part: A Bill passed by the State Assembly becomes law only after it is assented to by the Governor.The Governor being a part of the State legislature, the process of law making is complete only when he signs it, signifying his assent.
    • Established practice: In all democratic countries, similar provision exists in their constitutions.

    Governor What is the Power of Governor Vis-e-vis legislature?

    • What Article 200 says: The Constitution provides certain options for the Governor to exercise when a Bill reaches him from the Assembly.
    • There are four possible scenarios:
    1. Assent: He may give assent.
    2. Reconsider: He can send it back to the Assembly requesting it to reconsider some provisions of the Bill, or the Bill itself. In this case, if the Assembly passes the Bill without making any change and sends it back to the Governor, he will have to give assent to it.
    3. Reserve: The third option is to reserve the Bill for the consideration of the President.
    4. Withhold: The fourth option, of course, is to withhold the assent.

    What are the Legislative practice in other democracies ?

    • UK: The royal assent is necessary for a Bill to be passed by Parliament to become law and the crown has the power to withhold assent. But it is a dead letter.
    • No power of veto: By practice and usage there is no power of veto exercised by the crown in England now. Moreover, refusal of royal assent on the ground that the monarchy strongly disapproves of the Bill or that the Bill is very controversial is treated as unconstitutional.
    • USA: In the United States, the President is empowered by the Constitution to refuse assent and return a Bill to the House but if the Houses again pass it with two thirds of each House the Bill becomes law.

    GovernorWhy there is an ambiguity over the role of governors in India?

    • Role of the governor: The question of whether a Governor is permitted by the Constitution to cause uncertainty in the matter of giving assent to the Bills passed by State legislatures assumes great importance.
    • Presidential Assent: The provision concerned makes it clear that a Bill can be reserved for the consideration of the President only if the Governor forms an opinion that the Bill would endanger the position of the High Court by whittling away its powers. The Constitution does not mention any other type of Bill which is required to be reserved for the consideration of the President. Nevertheless, the courts have conceded a certain discretion to the Governors in the matter of sending Bills to the President.
    • Constitution is silent: the Constitution does not mention the grounds on which a Governor may withhold assent to a Bill.
    • No remedy: The Indian Constitution, however, does not provide any such remedy as that of USA or UK . The courts too have more or less accepted the position that if the Governor withholds assent, the Bill will go. Thus, the whole legislative exercise will become fruitless. It does not square with the best practices in old and mature democracies.

    What is the Court mandated legislative practice?

    • According to Article 361: The Constitution prohibits the court from initiating proceedings against a Governor or the President for any act done in exercise of their powers. They enjoy complete immunity from court proceedings. It is in fact a unique situation where a government is placed in a situation of having to challenge a Governor’s action of withholding assent to a Bill.
    • Reasons: Governor while declaring that he withholds assent will have to disclose the reason for such refusal.
    • No Arbitrary actions: Being a high constitutional authority, the Governor cannot act in an arbitrary manner
    • Unconstitutional: If the grounds for refusal disclose mala fide or extraneous considerations or ultravires, the Governor’s action of refusal could be struck down as unconstitutional.
    • Rameshwar Prasad and Others. vs Union of India case: The Court held: “the immunity granted by Article 361(1) does not, however, take away the power of the Court to examine the validity of the action including on the ground of malafides”.
    • Pocket veto: since the Constitution does not fix any timeline for the Governor to decide the question of assent, he can wait for any length of time without doing anything. This is illogical and militates against the constitutional scheme in respect of law making by the legislatures.

    GovernorConclusion

    • The legislature reflects the will of the people and is the constitutionally designated body to make laws. If the Governor who does not reflect in any way the aspirations of the people of the State refuses assent, and thereby defeats the legislative programme of the elected government, it would be against the spirit of the Constitution.

    Mains Question

    Q.Governor is the connecting link between state and central executive. Discuss the duties of Governor with respect to state legislature? Why Governor tilt more towards centre than state?

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

    Analysing Insolvency and bankruptcy Code

    op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: what is IBC

    Mains level: IBC reforms

    InsolvencyContext

    • Speaking at the Sixth anniversary of the insolvency and bankruptcy Board of India (IBBI) on October 1, Union Finance Minister Nirmala Sitharaman said that the country could not afford to lose the “sheen” of its insolvency law, the Insolvency and Bankruptcy code(IBC)

    What is Insolvency?

    • Simply speaking, insolvency is a financial state of being one that is reached when you are unable to pay off your debts on time.
    • Insolvency is essentially the state of being that prompts one to file for bankruptcy. An entity a person, family, or company becomes insolvent when it cannot pay its lenders back on time.
    • Typically, those who become insolvent will take certain steps toward a resolution. One of the most common solutions for insolvency is bankruptcy.

    What is Bankruptcy?

    • Bankruptcy, on the other hand, is a legal process that serves the purpose of resolving the issue of insolvency.
    • Bankruptcy is a legal declaration of one’s inability to pay off debts. When one files for bankruptcy, one obliges to pay off what is owed with help from the government.

    InsolvencyWhat is Insolvency and Bankruptcy Code (IBC)?

    • In a growing economy, a healthy credit flow and generation of new capital are essential.
    • When a company or business turns insolvent or “sick”, it begins to default on its loans.
    • In order for credit to not get stuck in the system or turn into bad loans, it is important that banks or creditors are able to recover as much as possible from the defaulter, as quickly as they can.

    Why the IBC introduced?

    • Increasing Non ­Performing Assets: In 2016, at a time when India’s Non Performing Assets and debt defaults were piling up, and older loan recovery mechanisms were performing badly, the IBC was introduced to overhaul the corporate distress resolution regime in India.
    • Time bound mechanism: To consolidate previously available laws to create a time bound mechanism with a creditor­ in­ control model as opposed to the debtor ­in ­possession system.
    • Two positive outcomes: When insolvency is triggered under the IBC, there can be just two outcomes: resolution or liquidation. liquidation means the process of winding up a corporation or incorporated entity

    InsolvencyImportance of the Insolvency and bankruptcy code

    • Resolution: First objective is finding a way to save a business through restructuring, change in ownership, mergers etc.
    • Maximising the value: The second objective is to maximise the value of assets of the corporate debtor  maximise the value .
    • Credit facility: To promote entrepreneurship, availability of credit, and balancing the interests of all stakeholders.
    • Easy exit: The Insolvency and Bankruptcy Code would provide such an environment to ensure easy exit for sick companies and help the country to improve its position in ease of doing business.
    • Speedy winding up: The bankruptcy code will make it easier for companies to wind up failed businesses and bring India on a par with developed nations in terms of resolving bankruptcy issues.
    • Time bound disposal: Timeliness is key here so that the viability of the business or the value of its assets does not deteriorate further. It minimizes the problem of delay as there are strict timelines within which the case has to be disposed off. Quick disposal of cases will maximize the recovery amount.
    • Information database: It prepares a database to provide information on the insolvency status of individuals. In addition to this, specialized insolvency professionals helps in guiding through the process.
    • Easy process of claim: Easy process of claim by the creditors also encourages financial institutions to extend credit facilities thus strengthening the financial markets with increased availability of credit for business.

    What are the challenges before IBC?

    • Weak Resolution: IBBI data for the 3,400 cases admitted under the IBC in the last six years, more than 50% of the cases ended in liquidation, and only 14% could find a proper resolution.
    • Increasing deadlines: The IBC was thus initially given a 180 day deadline to complete the resolution process, with a permitted 90 day extension. It was later amended to make the total timeline for completion 330 days is almost a year.
    • In FY22, it took 772 days to resolve cases involving companies that owed more than 1,000 crore. The average number of days it took to resolve such cases increased rapidly over the past five years.
    • On Haircuts (Debts that banks forgo):The Parliamentary Standing Committee on Finance pointed out in 2021 that in the five years of the IBC, creditors on an average had to bear an 80% haircut in more than 70% of the cases.
    • As per The Hindu Data Team, in close to 33 of 85 companies so far that owed more than 1,000 crore, lenders had to take above 90% haircuts. In case of the resolution of the Videocon Group for instance, creditors bore a haircut of 95.3%.

    InsolvencyWhat  are experts saying?

    • Addressing the delays: In order to address the delays, the Parliamentary Standing Committee suggested that the time taken to admit the insolvency application and transfer control of the company to a resolution process, should not be more than 30 days after filing the case.
    • New mechanism: The IBBI has also called for a new yardstick to measure haircuts. It suggested that haircuts not be looked at as the difference between the creditor’s claims and the actual amount realized but as the difference between what the company brings along when it enters IBC and the value realized.

    Conclusion

    • Insolvency and Bankruptcy Code is a comprehensive and systemic process, which gives a quantum leap to the functioning of the credit market. However, it is the need of the hour to find new and innovative alternatives to make this system comprehensible and address the challenge of delay and resolution.

    Mains Question

    Q. Insolvency and Bankruptcy Code (IBC) is a comprehensive and systemic process, which gives a quantum leap to the functioning of the credit market. Discuss the challenges and way ahead in the resolution mechanism of IBC.

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  • Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

    Marital rape, MTP Act and the Society

    op-ed snap | Indian Society | Mains Paper 1: Role Of Women & Women Organization

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MTP Act.

    Mains level: Abortion rights,Persistence of marital rape and need for its criminalization

    Marital rapeContext

    • The recent Supreme court judgment expands the definition of rape to marital rape for the MTP Act. Marital rape is still not criminalised. If society does not accept “marital rape” as even a moral offence, how will a woman convince doctors to terminate her pregnancy based on the exception provided by the SC’s verdict.

    Background

    • The Supreme Court has held that all women, irrespective of their marital status, are entitled to safe and legal abortion till 24 weeks of pregnancy under the Medical Termination of Pregnancy (MTP).

    What is Medical Termination of Pregnancy (MTP) Act?

    • Abortion in India has been a legal right under various circumstances for the last 50 years since the introduction of the Medical Termination of Pregnancy (MTP) Act in 1971
    • The Act was amended in 2003 to enable women’s access to safe and legal abortion services.

    Marital rapeWhat are the Changes in Medical Termination of Pregnancy (MTP) Act, 2021?

    • The gestation limit: The gestation limit for abortions has been raised from the earlier ceiling of 20 weeks to 24 weeks, but only for special categories of pregnant women such as rape or incest survivors. But this termination would need the approval of two registered doctors.
    • Doctor’s approval: All pregnancies up to 20 weeks require one doctor’s approval. The earlier law, the MTP Act 1971, required one doctor’s approval for pregnancies up to 12 weeks and two doctors’ for pregnancies between 12 and 20 weeks.
    • Contraceptive failure: Women can now terminate unwanted pregnancies caused by contraceptive failure, regardless of their marital status. Earlier the law specified that only a “married woman and her husband” could do this.
    • In case of fetal disability:  There is also no upper gestation limit for abortion in case of fetal disability if so decided by a medical board of specialist doctors, which state governments and union territories’ administrations would set up.

    What is marital rape?

    • Marital rape is the act of sexual intercourse with one’s spouse without her consent.
    • It is no different manifestation of domestic violence and sexual abuse.
    • It is often a chronic form of violence for the victim which takes place within abusive relations.

    Marital rapeStatistics on Marital rape in India

    • The NFHS-5 survey (2019-21):
    • The survey said that 32% of ever-married women have suffered spousal physical, sexual, or emotional violence, and 27% have suffered at least one form of violence.
    • Twenty-nine percent of ever- married women have experienced spousal physical violence and 14% have suffered emotional violence.
    • The form of sexual violence most commonly reported by women is that their husband used physical force to have sexual intercourse when they did not want to (5%).
    • Four per cent reported that their husband forced them with threats or in other ways to perform sexual acts they did not want to and 3% of them reported that their husband forced them to perform any sexual acts they did not want to.
    • Women in rural areas are more likely (34%) than women in urban areas (27%) to experience one or more forms of spousal violence.

    Why modern India still not accepting marital rape as a rape?

    • Definition: The definition of rape codified in Section 375 of the Indian Penal Code (IPC) includes all forms of sexual assault involving non-consensual intercourse with a woman.
    • Non-Criminalization: Non-Criminalization of marital rape in India emanates from Exception 2 to Section 375.
    • Exemption: Section 375 defines rape and lists seven notions of consent which, if vitiated, would constitute the offence of rape by a man. However, the provision contains a crucial exemption, Sexual intercourse or sexual acts by a man with his own wife, the wife not being under eighteen years of age, is not rape.
    • Marriage as perpetual consent: As per current law, a wife is presumed to deliver perpetual consent to have sex with her husband after entering marital relations. The concept of marital rape in India is the epitome of what we call an “implied consent”. Marriage between a man and a woman here implies that both have consented to sexual intercourse, and it cannot be otherwise.

    What is the link between marital rape and MTP Act?

    • The distinction and the cultural ethos: Married women have a different world attire, jewellery, rituals compared to widows or unmarried or deserted women .So is the right to sexual intercourse. In contrast, unmarried women do not have a right to sex. So what does the right to terminate pregnancy mean for them
    • Ownership of women’s sexuality: Unmarried women cannot have sex, married women cannot say no to sex because men own women’s sexuality. Husbands can use the legal remedy of restitution of conjugal rights against runaway wives. Ownership is integral here
    • Cause of Disharmony: An unmarried woman does not have an owner. It causes confusion and disorder. Women’s sexuality is seen as a cause of disharmony.

    Marital rapeWhy marital rape must be a crime?

    • Associated physical violence: Rape by a spouse, partner or ex-partner is more often associated with physical violence.
    • Mental harassment: There is research showing that marital rape can be more emotionally and physically damaging than rape by a stranger.
    • Compulsive relationship: Marital rape may occur as part of an abusive relationship.
    • Revengeful nature: Furthermore, marital rape is rarely a one-time event, but a repeated if not frequent occurrence.
    • Obligation on women: In the case of marital rape the victim often has no choice but to continue living with their spouse.

    Present regulations in India

    • Indian Penal Code criminalizes rape in most cases, although marital rape is not illegal when the woman is over the age of 18.
    • However, until 2017, men married to those between 15 and 18 could not be convicted of rape.
    • Marital rape of an adult wife, who is unofficially or officially separated, is a criminal offence punishable by 2 to 7 year in prison; it is not dealt by normal rape laws which stipulate the possibility of a death sentence.
    • According to the Protection of Women From Domestic Violence Act (2005), other married women subject to such crime by their husband may demand for financial compensation.
    • They also have the right to continue to live in their marital household if they wish, or may approach shelter or aid homes.

    Way forward

    • Sanctioning marital rape is an acknowledgment of the woman’s right to self-determination (i.e., control of all matters relating to her body.
    • The recent judgment on the MTP Act has extended the definition of rape to marital rape which is a big step in the right direction.
    • However in a society with strong social norms and value systems every stakeholder should have more than a legitimate motive. It has to play an important role.

    Mains Question

    Q.While abortion is available under legal regulations in the country, Discuss the relationship between the Medical Termination of Pregnancy Act and Marital Rape.

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  • Quantum Technology : Next generation Computers are achievible

    op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Quantum Technology

    Mains level: Quantum Technology applications

    QuantumContext

    • The Nobel Prize committee decided to honour three scientists Alain Aspect of France, John Clauser of the US, and Anton Zeilinger of Austria for their work in domain quantum physics.

    What is the contribution of these three scientists?

    • Together, these three have made seminal contributions to not just the foundations of quantum theory but also to efforts that have now enabled the possibility of a wide range of applications.
    • Their experiments have conclusively established that the ‘entanglement’ phenomenon observed in quantum particles was real, not a result of any ‘hidden’ or unknown forces.

    What is the Significance of this Discovery?

    • Wide applications: It could be utilised to make transformative technological advances in computing, hack-free communications, and science fiction-like concept of ‘teleportation’.

    Quantum What is Quantum Theory?

    • Subatomic level: Quantum theory is a fundamental theory in physics that provides a description of the physical properties of nature at the scale of atoms and subatomic particles.It is the foundation of all quantum physics including quantum chemistry, quantum field theory, quantum technology, and quantum information science.
    • Different from conventional physics: Quantum mechanics differs from classical physics in that energy, momentum, angular momentum.

    Development in Quantum Theory so far

    • Planck’s assumption: In 1900, Planck made the assumption that energy was made of individual units, or
    • Albert Einstein’s theory : In 1905, Albert Einstein theorized that not just the energy, but the radiation itself was quantized in the same manner.
    • Louis de Broglie theory: In 1924, Louis de Broglie proposed that there is no fundamental difference in the makeup and behaviour of energy and matter; on the atomic and subatomic level either may behave as if made of either particles or waves. This theory became known as the principle of wave-particle duality: elementary particles of both energy and matter behave, depending on the conditions, like either particles or waves (wave-particle duality).
    • Heisenberg proposed: In 1927, Werner Heisenberg proposed that precise, simultaneous measurement of two complementary values – such as the position and momentum of a subatomic particle – is impossible. Contrary to the principles of classical physics, their simultaneous measurement is inescapably flawed; the more precisely one value is measured, the more flawed will be the measurement of the other value. This theory became known as the uncertainty principle, which prompted Albert Einstein’s famous comment, “God does not play dice.”

    QuantumWhat is Entanglement?

    • Entanglement was another of several weird properties exhibited by these tiny particles. Two particles, having ‘interacted’ with each other at some stage, were found to have got ‘entangled’ in a way that the behaviour of one produced an instantaneous reaction in the other even if the two were no longer connected in any way and were separated by very large distances.
    • The entanglement property to open up new technological possibilities. first time that it was possible to ‘teleport’ the quantum states of a particle to another location without the particle moving anywhere and without a medium.

    What is Superposition?

    • It’s a phenomenon where, a particle exists simultaneously at multiple locations, known as superposition. The chance of finding the particle at any given place was dictated by probabilistic calculations, and once it was found, or observed, at one location, it ceased to exist at all other places.

    What was the Einstein’s assessment?

    • Special theory of relativity: Einstein’s Special Theory of Relativity prohibited any signal from travelling faster than the speed of light. The seemingly instantaneous communication due to entanglement had the danger of further unravelling the foundations of physics.
    • Spooky behaviour: Einstein describes the strange behaviour by quantum particles as ‘spooky’.
    • Speed of light: One major concern of Einstein, that entanglement allows for transmission of information at speeds faster than light, was not entirely accurate.When an operation is performed on one of the entangled particles, there is an instantaneous reaction in the other.
    • Communication problem: There is no way for the observer at the other end to know the reaction has happened. The observer has to be made aware of the operation having been performed, and this happens only through classical communication channels limited by the speed of light restriction.

    QuantumConclusion

    • The entanglement property is now being utilised to build the next generation of computers, called quantum computers, which exploit the quantum behaviour of particles to overcome challenges considered as unsurmountable. It is being used to create secure communication algorithms that would be immune to hacking.

    Mains Question

    Q.What is the quantum theory? How it is different from classical theory of physics? How entanglement property is used in various applications?

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