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High Inflation in India
Context
- It seems that inflation may hover around 7 per cent despite RBI’s tightening of monetary policy in the months to come.
What is a simple definition for inflation?
- Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).
Inflation Rate
- Inflation Rate is the percentage change in the price level from the previous period. If a normal basket of goods was priced at Rupee 100 last year and the same basket of goods now cost Rupee 120, then the rate of inflation this year is 20%.
- Inflation Rate= {(Price in year 2 – Price in year 1)/ Price in year 1} *100
Types of Inflation

Creeping Inflation
- Creeping or mild inflation is when prices rise 3% a year or less. This kind of mild inflation makes consumers expect that prices will keep going up. That boosts demand. Consumers buy now to beat higher future prices. That’s how mild inflation drives economic expansion.
Walking Inflation
- This type of strong, or pernicious, inflation is between 3-10% a year. It is harmful to the economy because it heats up economic growth too fast. People start to buy more than they need, just to avoid tomorrow’s much higher prices. This drives demand even further so that suppliers can’t keep up. More important, neither can wages. As a result, common goods and services are priced out of the reach of most people.
Galloping Inflation
- When inflation rises to 10% or more, it wreaks absolute havoc on the economy. Money loses value so fast that business and employee income can’t keep up with costs and prices. Foreign investors avoid the country, depriving it of needed capital. The economy becomes unstable, and government leaders lose credibility. Galloping inflation must be prevented at all costs.
Hyperinflation
- Hyperinflation is when prices skyrocket more than 50% a month. It is very rare. In fact, most examples of hyperinflation have occurred only when governments printed money to pay for wars. Examples of hyperinflation include Germanyin the 1920s, Zimbabwe in the 2000s, and Venezuela in the 2010s. The last time America experienced hyperinflation was during its civil war.
Core Inflation
- The core inflation rate measures rising prices in everything except food and energy. That’s because gas prices tend to escalate now and then. Higher gas costs increase the price of food and anything else that has large transportation costs.
Consumer Price Index
- CPI is used to monitor changes in the cost of living over time. When the CPI rises, the average Indian family has to spend more on goods and services to maintain the same standard of living. The economic term used to define such a rising prices of goods and services is Inflation.
Whole sale Price Index
- WPI is used to monitor the cost of goods and services bought by producer and firms rather than final consumers. The WPI inflation captures price changes at the factory/wholesale level.
GDP Deflator
- Another important measure of calculating standard of living of people is GDP Deflator. GDP Deflator is the ratio of nominal GDP to real GDP. The nominal GDP is measured at the current prices whereas the real GDP is measured at the base year prices. Therefore, GDP Deflator reflects the current level of prices relative to prices in a base year. Example, In India the base year of calculating deflator is 2011-12.
Factors fuelling inflation in India
- Falling rupee: Inflation is here to stay because it has much to do with the decline in value of the rupee that has fallen to its lowest, which makes imports of oil and gas more expensive.
- Ukraine crisis: The war in Ukraine has the same effect and pushes the price of some food items upward.
- Poor inflation management: With inflation, as measured by the consumer price index, in August going back to 7 per cent, and the wholesale price index coming in at 12.4 per cent, one thing is clear India is not out of the woods on inflation management.
Rising inflation have these implications
- Impact on the poor: This upsurge of inflation is affecting the poor more because some of the commodities whose prices are increasing the most represent a larger fraction of the budget of the most vulnerable sections of society.
- Rising inequality: As a result, inequalities which were already on the rise are increasing further. Recently, the State of Inequality in India report showed that an Indian making Rs 3 lakh a year belonged to the top 10 per cent of the country’s wage earners.
- Inequality in healthcare: India’s spending on healthcare is among the lowest in the world. Decent level of healthcare is available only to the ones who can afford it because of increasing out-of-pocket expenditure the payment made directly by individuals for the health service, not covered under any financial protection scheme. Overall, these out-of-pocket expenses on healthcare are 60 per cent of the total expenditure on public health in India, which is one of the highest in the world.
Need for bold steps on three fronts to tackle inflation
- Unless bold and innovative steps are taken at least on three fronts, GDP growth and inflation both are likely to be in the range of 6.5 to 7.5 per cent in 2022-23.
1] Tightening of loose monetary policy: The Reserve Bank of India (RBI) is mandated to keep inflation at 4 per cent, plus-minus 2 per cent.
- The RBI has already started the process of tightening monetary policy by raising the repo rate, albeit a bit late.
- It is expected that by the end of 2022-3, the repo rate will be at least 5.5 per cent, if not more.
- It will still stay below the likely inflation rate and therefore depositors will still lose the real value of their money in banks with negative real interest rates.
- That only reflects an inbuilt bias in the system — in favour of entrepreneurs in the name of growth and against depositors, which ultimately results in increasing inequality in the system.
2] Prudent fiscal policy: Fiscal policy has been running loose in the wake of Covid-19 that saw the fiscal deficit of the Union government soar to more than 9 per cent in 2020-21 and 6.7 per cent in 2021-22, but now needs to be tightened.
- Government needs to reduce its fiscal deficit to less than 5 per cent, never mind the FRMB Act’s advice to bring it to 3 per cent of GDP.
- However, it is difficult to achieve when enhanced food and fertiliser subsidies, and cuts in duties of petrol and diesel will cost the government at least Rs 3 trillion more than what was provisioned in the budget.
3] Rational trade policy: Export restrictions/bans go beyond agri-commodities, even to iron ore and steel, etc. in the name of taming inflation.
- But abrupt export bans are poor trade policy and reflect only the panic-stricken face of the government.
- A more mature approach to filter exports would be through a gradual process of minimum export prices and transparent export duties for short periods of time, rather than abrupt bans, if at all these are desperately needed to favour consumers.
Conclusion
- Though the government is opting for market-based economics, currently, India needs a mixed solution that comprises price stability via government channels and subsidies.
Mains question

Q.What are the fuelling factors for inflation? Discuss what steps should be taken to tackle inflation.

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September 19, 2022
100 years of periyar because of whom tamil nadu became modern and progressive
Context
- We celebrate Periyar E.V. Ramasamy’s birth anniversary (September 17) as Social Justice Day.
Who is periyar?
- Erode Venkatappa Ramasamy, revered as Periyar or Thanthai Periyar, was an Indian social activist and politician who started the Self-Respect Movement and Dravidar Kazhagam. He is known as the ‘Father of the Dravidian movement’. He rebelled against Brahminical dominance and gender and caste inequality in Tamil Nadu.
Who started self-respect movement?
- The self-respect movement was founded by V.Ramaswamy Naicker, commonly known as Periyar. It was a dynamic social movement aimed at destroying the contemporary Hindu social order in its totality and creating a new, rational society without caste, religion and god.
Why Periyar is called as vaikom hero?
- V. Ramasamy Periyar led the famous Vaikom Sathya Graha in 1924, where the people of down trodden community were prohibited to enter into the temple. Finally the Travancore government relaxed such segregation and allowed the people to enter into the temple. Hence periyar was given the title of ‘Vaikom Hero’.
Leadership at a critical juncture
- The satyagraha began with the active support of the Kerala Pradesh Congress Committee.
- Within a week all its leaders were behind bars. George Joseph sought directions from Gandhi and C. Rajagopalachari. He also wrote to Periyar pleading with him to lead the satyagraha.
- Periyar was in the midst of political work. As he was then the president of the Tamil Nadu Congress Committee, Periyar handed over temporary charge to Rajaji before reaching Vaikom in 1924.
- From that date to the day of the victory celebrations in 1925, he was in the struggle giving it leadership at a critical juncture.
Periyar’s role
- Against violence – Periyar presided over the satyagraha in the face of violence and indignity inflicted by the orthodox and the repression of the police.
- Mobilising – To mobilise support, he visited villages in and around Vaikom and delivered public speeches in several towns.
- Gandhi – When the Kerala leaders asked for Gandhi’s permission to make the satyagraha an all-India affair, Gandhi refused saying that volunteers from Tamil Nadu would keep it alive.
- In reports – the British Resident said in his report to the government of Madras: “In fact, the movement would have collapsed long ago but for the support it has received from outside Travancore…”
- Historian T.K. Ravindran — observes that Periyar’s arrival gave “a new life to the movement”.
His Vision for the future
- Ideas on rationality: When he presented his thoughts, there was nuance, honesty, and an explicitness, which prompted even people practising different faiths to discuss and debate his ideas on rationality and religion.
- Freedom of expression: Periyar himself said, “Everyone has the right to refute any opinion. But no one has the right to prevent its expression.”
- Eradication of social evils: Periyar is often referred to as an iconoclast, for the rebellious nature of his ideas and the vigour with which he acted. His vision for the future was a part of all his actions. He did not merely aim at the eradication of social evils; he also wanted to put an end to activities that do not collectively raise standards of society.
Foundation of rationalism
- He understood the evolution of political thought: Periyar’s vision was about inclusive growth and freedom of individuals. He was an important ideologue of his day because of the clarity in his political stand. More importantly, he understood the evolution of political thought and was able to glide through time with this.
- He presented rationalism as a solid foundation: For thinking along these lines. He said, “Wisdom lies in thinking. The spearhead of thinking is rationalism.” Periyar was way ahead of his time.
- Concern towards poor: “Whomsoever I love and hate, my principle is the same. That is, the educated, the rich and the administrators should not suck the blood of the poor.”
- Periyar proclaimed that he would always stand with the oppressed: In the fight against oppressors and that his enemy was oppression. There have been several social reformers in Tamil Nadu who shared their revolutionary thoughts with the people in the past century. In that spectrum, Periyar occupies a unique place because he made interactions of multiple worlds possible.
Periyar said, “Any opposition not based on rationalism or science or experience, will one day or other, reveal the fraud, selfishness, lies, and conspiracies.”

Conclusion
- His works against the Bhraminical dominance, oppression of women in Tamil Nadu, caste prevalence are exemplary. Periyar promoted the principles of rationalism, self-respect, women’s rights and eradication of caste. He opposed the exploitation and marginalisation of the people of South India and the imposition of what he considered Indo-Aryan India.
Mains question

Q.Discuss the future vision of periyar by discussing his role in vaikom satyagraha. Do you think he has placed foundation of rationalism in Tamil Nadu?

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September 17, 2022
How lower fertility rate hampers demographic dividend in number of ways
Context
- Though the Global population, in terms of numbers, has been steadily increasing the average global fertility rate has been consistently declining over the past 70 years.
What Reports say?
- Reports suggest that the global population could grow to around 8.5 billion in 2030.
- According to the World Population Prospects 2022, Average number of children per woman in the reproductive age group has declined by 50%, from an average of five children per woman in 1951 to4 children in 2020.
What is Fertility?
- Fertility is the quality or state of being fertile.
- Fertility is the ability to reproduce through normal sexual interaction. In other words it is the natural capacity to conceive a biological child.
- Fertilitychanges with age. Both males and females become fertile in their teens following puberty.
What is fertility rate?
- The number of live births in women over a specific length of time.
- Total fertility rate is the average number of children born to a woman during her lifetime.
Recent findings

The newly released World Population Prospectus notes that the global fertility rate fell from three in 1990 to 2.3 in 2021.

Overview of fertility dynamics
- Reason: Speeding up the social phenomenon of demographic transition.
- Poorer countries: speeding up the Transition a lot faster than the richer ones.
- Britain: Took 130 years to transition from a fertility rate of five per woman in 1800 to two in 1930, whereas
- South Korea: Took 20 years from 1965 to 1985 to achieve the same. South Korea reporting the lowest fertility rate, 1.05 children per woman.
- Most advanced economies: Have their fertility rate below the replacement rate of 2.1.
- Sub-Saharan African countries: Expected to contribute more than half the population growth after 2050 and grow through 2100. For example, Niger a sub Saharan country with highest fertility rate in the world, estimated to be 91 children per woman.
- What is Demographic transition: is a long-term trend of declining birth and death rate. It is shift from high birth rates to low birth rates in societies with minimal technology, education (especially of women) and economic development and from high death rates to Low death rates in societies with advanced economies and development.
Where India Stands
- According to National Family Health Survey (NFHS), fertility rate falling below the replacement level for the first time to 2.0 in 2021.dropped from 2.2 to 2.0.
- only five States have a fertility rate above the replacement rate: Bihar (3), Meghalaya (2.9), Uttar Pradesh (2.4), Jharkhand (2.3), and Manipur (2.2)
- At the time of Independence, India’s fertility rate was six per woman, and it had taken 25 years to reach five, with the government launching the first ever family planning program in the world in 1952.
- India’s fertility further declined to four in the 1990s when Kerala became the first State in India to have a fertility rate below replacement l
- Increased use of contraception, more years of average schooling, better health care, and an increase in the mean marriage age of women are of the reasons behind the steady dip in fertility rate.
Lower fertility rate as cause and consequences on the economy

Positive impact:
- Lower fertility leads to rise in women’s education.
- Window of time where the ration of working-age population is higher than that of the dependent age groups.
- This high proportion of people in the workforce boosts income and investment, and higher level of saving.
- Lower pressure on land, water and other resources and would also contribute to achieving environmental goals.
- Advanced health care and better nutrition, results in increased life expectancy and productivity of citizens.
Negative impact:
- Lower fertility impacts women’s education positively, which in turn lowers the fertility of the next generations.
- While the income rises with better health care and better infrastructure development, Fertility drops.
- A fall in fertility rate beyond replacement level would have a negative effect on the proportion of the working population, which in turn will affect output in an economy.
- After the window of demographic dividend, the huge working age population moves to old age, supported by fewer workers.
- Japan was the first country to experience the implications of falling fertility rates. Country is now facing fiscal challenges to meet rising social security costs.
Experiments to deal with fertility decline

Countries across the globe are experimenting with policies to boost fertility.
- Germany: found success in boosting births through liberal labour laws, allowing more parental leave and benefits.
- Denmark: offering state-funded IVF for women below 40 years
- Hungary: Recently nationalized IVF clinics.
- Poland: Gives out monthly cash payments to parents having more than two children
- Russia: Makes one-time payment to parents when their second child is born. Reinstituted the Soviet-era ‘Mother Heroine’ title, who bore and raised more than 10 children amounting to almost a one-time payment of 13 lakh.
Way ahead
- Need of the hour is to ensure liberal labor reforms, encourage higher female labor force participation, higher focus on nutrition and health.
- Although India’s working age population will continue to grow for many more decades, it would need to keep an eye on fertility dips.
Mains Question

What are Implications of lower fertility rate on the economy? What steps could be taken to deal with fertility decline? Discuss.

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September 17, 2022
Why Should India choose manufacturing over services?
Context
- Manufacturing can create higher productivity jobs.
What is service sector?
- The service sector, also known as the tertiary sector, is the third tier in the three-sector economy. Instead of product production, this sector produces services maintenance and repairs, training, or consulting. Examples of service sector jobs include housekeeping, tours, nursing, and teaching.
What is called manufacturing sector?
- Manufacturing is the making of goods by hand or by machine that upon completion the business sells to a customer. Items used in manufacture may be raw materials or component parts of a larger product. The manufacturing usually happens on a large-scale production line of machinery and skilled labor.
Should India focus on manufacturing over services?
- Services sector failed to create more jobs: So far, in services, we have certainly developed some advantage and we are doing rather well. Services’ share of the economy has gone up to over 50% of the GDP. However, this sector has not been able to create enough jobs in a commensurate manner. The result is that agriculture still continues to sustain nearly half of India’s workforce, which means that 15% of GDP is supporting some 45% of the workforce.
- Manufacturing can provide productive jobs: We need more productive job opportunities for the workforce to shift away from agriculture. We need to focus attention on the manufacturing sector because of the direct and indirect jobs that it can create.
- Empirical fact: It is an empirical fact that manufacturing of all productive sectors has the highest backward and forward linkages.
- Significant potential: So, all together, there is significant potential for the manufacturing sector to create higher productivity jobs for people stuck in agricultural activities. That is the future for India.
What is PLI Scheme?
- As the name suggests, the scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods.
- PLI scheme offers incentives on incremental sales for products manufactured in India.
- The scheme for respective sectors has to be implemented by the concerned ministries and departments.
Criteria laid for the scheme
- Eligibility criteria for businesses under the PLI scheme vary based on the sector approved under the scheme.
- For instance, the eligibility for telecom units is subject to the achievement of a minimum threshold of cumulative incremental investment and incremental sales of manufactured goods.
- The minimum investment threshold for MSME is Rs 10 crore and Rs 100 crores for others.
- Under food processing, SMEs and others must hold over 50 per cent of the stock of their subsidiaries, if any.
- On the other hand, for businesses under pharmaceuticals, the project has to be a green-field project while the net worth of the company should not be less than 30 per cent of the total committed investment.
What are the incentives offered?
- An incentive of 4-6 per cent was offered last year on mobile and electronic components manufacturers such as resistors, transistors, diodes, etc.
- Similarly, 10 percent incentives were offered for six years (FY22-27) of the scheme for the food processing industry.
- For white goods too, the incentive of 4-6 per cent on incremental sales of goods manufactured in India for a period of five years was offered to companies engaged in the manufacturing of air conditioners and LED lights.
Benefits of PLI
- The scheme has a direct employment generation potential of over 2,00,000 jobs over 5 years.
- It would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities. Indirect employment will be about 3 times of direct employment as per industry estimates.
- Thus, the total employment potential of the scheme is approximately 8,00,000.
Conclusion
- In order to integrate India as a pivotal part of this modern economy, there is a strong need to step up our manufacturing capabilities.
Mains question

Q.Should India focus on manufacturing over services for job creation? Discuss the role Production Linked Incentive Scheme could play in boosting manufacturing in India.

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September 16, 2022
Parliamentary Standing Committees
Context
- In the recent monsoon session of Parliament (July-August) the Competition (Amendment) Bill, 2022 and the Electricity (Amendment) Bill, 2022 sent to the Parliamentary Committees for detailed examination and a report thereon.
Background
- Parliament had only limited legislative time this session and could pass only five pieces of legislation
- Oppositions stand: opposition alleging that the Government has been trying to steamroll various pieces of legislation in the last few sessions.
- Governments stand: Government worries that so much time is lost in disruptions in Parliament that the legislative process, as it is, becomes unduly delayed and therefore, referring the bills to the Standing Committees.
Parliamentary Committees
- Need of parliamentary committees: The functions of the Parliament are varied, complex and voluminous. Moreover, it has neither the adequate time nor necessary expertise to make a detailed scrutiny of all legislative measures.
- Function: To assist parliament to discharge of its duties.
- Mandate: To examine various legislations referred to it, the budget proposals of different Ministries, and also to do policy thinking on the vision, mission and future direction of the Ministries concerned.
- Composition: Members of the Parliament of both the LokSabha and the RajyaSabha in the ratio 2:1,
- Authority: constituted by the Speaker of the LokSabha and the Chairman of the RajyaSabha, jointly.
- Classification: Broadly, two kinds–Standing Committees and Ad Hoc Standing Committees are permanent (constituted every year or periodically) and work on a continuous basis, while Ad Hoc Committees are temporary and cease to exist on completion of the task assigned to them.
- Parliament has 24 Department Related Parliamentary Standing Committees (DRSC).
Relevance of parliamentary committees
- Withdrawal of farm law bills shows that if bills are not discussed thoroughly, these laws are just bizarre pieces of legislation from point of view consumers and stakeholders.
- Parliamentary committee’s discussions are held closed door. Members can express their opinion freely.
- Members of DRSC always try reach to consensus despite political differences. Such practices are essential for healthy democracy.
- To strengthen the relevance of parliamentarians the parliamentary committees are crucial tools.
How to improve Efficacy of committees?
- Compulsory process: The Speaker of the Lok Sabha and the Chairman of the Rajya Sabha have powers to refer Bills to a DRSC of Parliament. Making the process of reference of Bills to these committees compulsory/an automatic process will be useful. An exemption could be made with the specific approval of the Speaker/ Chairman after detailed reasons for the same.
- No whip: All discussions in the Parliamentary Standing Committee should be frank and free. No whip of the party would apply to them during the discussion.
- Time bound: fixed timeline to come up with the recommendation and present its report which can be decided by the Speaker/Chairman. In case the committee if fails to give its recommendation within the approved/extended time, the Bill may be put up before the House concerned directly.
- Inviting filed Expertise: To ensure quality work in the committees, experts in the field may be invited who could bring with them the necessary domain knowledge and also help introduce the latest developments and trends in that field from Some subject matter experts/young researchers could be associated with the committee for a short period would be fruitful.
- Authority: The Speaker/Chairman should have the right to fix a time limit, sometimes even stringent, if the government of the day asks for it and the demand is found to be reasonable by the Speaker/Chairman.
- Organized work in the gap: Between two sessions, there is generally enough time to organise committee meetings for discussions on Bills in the parliamentary committees. It is important for the Ministry of Parliamentary Affairs in collaboration with the committee chairmen to get these parliamentary works organized during the intersessional period, in advance.
- Other than Budget Proposals: The committees should not limit themselves to discussing just the budget proposals and endorsing them with a few qualifications here or amendments there. They should also come up with suggestions for the Ministry to take up new initiatives and people friendly measures.
Conclusion
- Discussion is not a stumbling block but an indispensable preliminary of any wise actions.
- Discussion is soul of democracy.
- Parliamentary committees are truly democratic institutions in India due to its consensus and bonhomie while functioning.
- Government of the day should take step to strengthen DRSC and refer more bills to committees.
Other related information

Parliamentary sessions
- The president from time to time summons each House of Parliament to meet.
- The maximum gap between two sessions of Parliament cannot be more than six months.
- In other words, the Parliament should meet at least twice a year.
- There are usually three sessions in a year: 1. The Budget Session (February to May); 2. The Monsoon Session (July to September); and 3. The Winter Session (November to December).
Competition Commission of India (CCI)
- CCI is the chief national competition regulatorin India.
- The commission was established on 14 October 2003. It became fully functional in May 2009
- It is a statutory body within the Ministry of Corporate Affairs
- Responsibility: To enforce the Competition Act, 2002 to promote competition and to prevent activities that effects negatively on competition in India.
- The CCI looks into cases and investigates them if the same has a negative impact on competition.
- CCI also approves combination under the act so that two merging entities do not overtake the market.
Mains Question Q.

Evaluate the significance of parliamentary standing committee in parliamentary democracy. Suggest the steps to strengthen the parliamentary committees.

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September 16, 2022
FAME India
Context
- Centralized procurement of 5,450 electric buses and subsequent increase in ambition to have 50,000 e-buses on the country’s roads by 2030 under FAME scheme.
- With the shared aim to rapidly electrify a key pillar of India’s public transportation, recent governance efforts of Union and state governments have created a new business model for e-buses.
Status of State-owned buses
- Status: There are currently around 1,40,000 registered public buses on India’s roads.
- Condition: Large numbers of them having sputtering engines which emits planet-warming fumes into the atmosphere. At least 40,000 of these buses are at the end of their lifespan and must be taken off the roads
- Operators: Most buses are owned and operated by State transport undertakings, which are in poor financial health.
- Revenue loss: They incur large losses because of the subsidized fares to crores of Indians each day.
- Problem: problems of fragmented demand and high prices.
- Limitation: As State governments control issues such as transit, urban governance and pollution control so there’s a limitation for the nation-wide action on this issue.
What is FAME India scheme?
- The National Electric Mobility Mission Plan (NEMMP) 2020: Is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
- FAME: As part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.
- FAME Phase-II: Government has approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019.
- Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for EVs in the country.
- This phase aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers. However, depending upon off-take of different category of EVs, these numbers may vary as the provision has been made for inter as well as intra segment wise f
- Incentives: Only advanced battery and registered vehicles will be incentivized under the scheme.
- Coverage: With greater emphasis on providing affordable & environment friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered e-2Ws are also covered under the scheme as a mass segment.
Obstacles in electric vehicle mobility

EV Cost and Battery cost:
- The cost is the most concerning point for an individual when it comes to buying an electric vehicle.
- However, there are many incentives given off by central and state governments. But the common condition in all policies is that the incentives are only applicable for up to a certain number of vehicles only and after removing the discount and incentives the same EV which was looking lucrative to buy suddenly becomes unaffordable
Beta version of vehicles:
- Right now, both the technology and companies are new to the market and the products they are manufacturing are possibly facing real costumers for the first time.
- It’s nearly impossible to make such a complex product like an automobile perfect for the customers in the first go, and as expected the buyers faced many issues. Vehicles like RV400, EPluto 7G, Nexon all them has to update their vehicle up to a very high extent after customer feedback and reviews.
Poor Infrastructure and range anxiety:
- Poor infrastructure is among the most pressing issue among people thinking to opt for electric vehicles.
- Poor infra doesn’t only include a lack of charging stations but also the lack of proper charging set up in their home.
No Universal charger and Ecosystem (Lack of standardization):
- Every second electric vehicle-making company has its own different charging port which is becoming a hurdle to setting up a proper charging ecosystem.
- Also, many EV users complained about facing moral trouble for charging their vehicle in different EV-making Company’s charging stations which can impact the growth of the EV industry.
Temperature Issues:
- Temperature can affect the performance of an EV battery at a large extent which makes EV’s inappropriate for too cold (Uttarakhand, Meghalaya) or too hot regions like (Rajasthan, Kerala). The battery can give its ideal performance when it’s in use under the temperature range of 15-40 degrees.
Environmental concerns:
- The EV revolution is necessary for the most populated and polluted parts of India like Delhi, Mumbai, etc. but in such cities the major chunk of electricity is generated through burning fossil fuels which are equivalent to spreading the pollution through the ICE vehicle smoke, even most of the charging stations are reportedly operating upon diesel-driven electricity generator.
Way ahead
- With anything new, there will always be challenges.
- The EV industry is still in a nascent stage in India but developing at a rapid pace. Catching up to speed are the infrastructure requirements to support the EV demand.
- Even with the current challenges, electric vehicles present huge potential to reduce our carbon footprints and provide a cost-effective system of transportation.
- And one way to contribute towards this growth is to buy an electric vehicle.
Mains Question

Q. What do you understand by FAME India scheme? How it will help tackling climate change? What are the obstacles in implementation of this scheme?

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September 16, 2022
old age problems that we should address now
Context

India will be facing the immediate challenge –The ageing of the population. Challenge to ensure a decent quality of life for the old age people in the near future, planning and providing for it must begin today.

Background
- Life expectancy in India has more than doubled since Independence from around 32 years in the late 1940s to 70 years or so today, a historical achievement.
- Over the same period, the fertility rate has crashed from about six children per woman to just two, which liberated women from the cycle of continuous child bearing and child care.
What is ageing of the population?
- Meaning: Population ageing is a shift in the distribution of a country’s population towards older ages.
- Reason behind it: Decline in the fertility rate and Rise In the life expectancy. An increase in longevity increases the average age of the population by increasing the numbers of surviving older people.
- Impact of the ageing population:, labor supply shortage, change in patterns of saving and investment, deteriorate fiscal balance, lack of adequate welfare system etc.
- Challenges they impose: Social security, elderly Healthcare, Dependence on the family etc.
What is the status in India?
- According to the National Commission on Population, The share of the elderly (persons aged 60 years and above) close to 9% in 2011.
- It is growing fast and may reach 18% by 2036.
Problems faced by elderly
- Depression: According to survey by Abdul Latif Jameel foundation in Tamilnadu, 30-50% of people above age of 60 has a symptoms of depression.The proportion with depression symptoms is much higher for women than men, and rises sharply with age. In most cases, depression remains undiagnosed and untreated.
- Loneliness: Loneliness one the major factor leading to depression. A large majority of elderly persons living alone are women, mainly widows.
- Hardship of age: Monetary assistance can certainly help to cope with many health issues.
- Poverty and poor health: Old age pensions are vital. Cash helps to lead a dignified life.
Current government schemes for elderly

Pradhan Mantri Vaya Vandana Scheme – This is one of the most popular senior citizen pension schemes in India.
- Designed for senior citizens above 60 years of age, the policy term of this Prime Minister Senior Citizen Scheme extends to ten years.
- The pensioner can choose the frequency of the payment – monthly/quarterly/half- yearly/annually.
- You can earn interest of 8% per annum over this scheme.
- The minimum and maximum capping of pension are Rs. 3,000 per month and 10,000 per month, respectively
National Programme for the Health Care of Elderly (NPHCE)–
- Introduced in 2010, this scheme concentrates on preventive as well as promotive, care for the maintenance of overall health.
- This program was launched to address the health issues faced by seniors.
- The district-level objectives include providing dedicated health facilities in district hospitals, community health centres (CHC), primary health centres (PHC), and sub-centres (SC) levels through State Health Society.
- These facilities maybe free or highly subsidized.
Varishta Mediclaim Policy –
- This policy aids seniors by covering the cost of medicines, blood, ambulance charges, and other diagnosis related charges.
- Designed for senior citizens between the age of 60 and 80 years, this helps meet the health-related expenses of senior citizens.
- Income tax benefits are allowed for payment of premium.
- Although the policy period is for one year, you can extend the renewal up to the age of 90 years.
Rashtriya Vayoshri Yojana –
- This scheme provides physical aids and assisted-living devices to the elderly above 60 years of age that belong to the BPL (below the poverty line) category.
- If senior citizens wish to avail this, then they must have a BPL card.
- This is a Central Sector Scheme and is entirely funded by the Central Government.
Varishta Pension Bima Yojana –
- This pension scheme, launched by the Ministry of Finance, is for senior citizens above 60 years.
- The LIC of India has the authority to operate this scheme.
- Any Medical check-ups is not necessary to avail this policy.
- It offers assured pension with a guaranteed interest rate of 8% per annum for up to 10 years –
- You can opt for monthly, quarterly, half-yearly, and yearly pension – depends on how you’d like to receive it.
Vayoshreshtha Samman –

This scheme focuses on those seniors who have made significant contributions in their disciplines and recognized their efforts.

It was upgraded to the National Award in 2013, and since then, awards have been granted below thirteen categories.

Conclusion
- Social security pensions, of course, are just the first step towards a dignified life for the elderly. They also need other support and facilities such as health care, disability aids and assistance with daily tasks, recreation opportunities and a good social life. They can be the active contributor to the economy having the years of experience and mentorship to the demographic dividend.
Mains Question Q.

Discuss the challenges before our elderly today? What steps have been taken by government to address these challenges?

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September 15, 2022
Fighting anaemia
Context
- The recent National Family Health Survey (NFHS-5) data shows anaemia rates increased from 53 per cent to 57 per cent in women and 58 per cent to 67 per cent in children in 2019-21.
Definition of anaemia
- The WHO defines anaemia as a condition where the number of red blood cells or the haemoglobin concentration within them is lower than normal. This compromises immunity and impedes cognitive development.
Why anaemia is a concern?
- Adverse effects of anaemia affect all age groups lower physical and cognitive growth and alertness among children and adolescents, and lesser capacity to learn and play, directly impacting their future potential as productive citizens.
- Anaemia among adolescent girls (59.1 per cent) advances to maternal anaemiaand is a major cause of maternal and infant mortality and general morbidity and ill health in a community.
What causes anaemia?
- Imbalanced diet: Cereal-centric diets, with relatively less consumption of iron-rich food groups like meat, fish, eggs, and dark green leafy vegetables (DGLF), can be associated with higher levels of anaemia.
- Underlying factors: High levels of anaemia are also often associated with underlying factors like poor water quality and sanitation conditions that can adversely impact iron absorption in the body.
- Iron deficiency is major cause: A diet that does not contain enough iron, folic acid, or vitamin B12 is a common cause of anaemia.
- Some other conditions: That may lead to anaemia include pregnancy, heavy periods, blood disorders or cancer, inherited disorders, and infectious diseases.
Why is anaemia so high in the country?
- Low vitamin intake: Iron-deficiency and vitamin B12-deficiency anaemia are the two common types of anaemia in India.
- High population and nutrition deprivation: Among women, iron deficiency prevalence is higher than men due to menstrual iron losses and the high iron demands of a growing foetus during pregnancies.
- Overemphasis on cereals: Lack of millets in the diet due to overdependence on rice and wheat, insufficient consumption of green and leafy vegetables could be the reasons behind the high prevalence of anaemia in India.
What is Iron fortification?
- Iron fortification of food is a methodology utilized worldwide to address iron deficiency. Iron fortification programs usually involve mandatory, centralized mass fortification of staple foods, such as wheat flour.
Why need iron fortification?
- Iron deficiency anaemia is due to insufficient iron.
- Without enough iron, the body can’t produce enough of a substance in red blood cells that enables them to carry oxygen (haemoglobin).
- Severe anaemia during pregnancy increases risk of premature birth, having a low birth weight baby and postpartum depression. Some studies also show an increased risk of infant death immediately before or after birth.
Success story / value addition
- Nepal’s success story to improve maternal anaemia by national action plan .
Anaemia Mukt Bharat
- The scheme aims to reduce the prevalence of anaemia in India.
- It provides bi weekly iron Folic acid supplementation to all under five children through Asha workers.
- Also, it provides biannual Deworming for children and adolescents. The scheme also establishes institutional mechanisms for advanced research in anaemia.
- It also focuses on non-nutritional causes of anaemia.
We need to focus on the following interventions
- Prophylactic Iron and Folic Acid supplementation.
- Intensified year-round Behaviour Change Communication Campaign (Solid Body, Smart Mind).
- Appropriate infant and young child feeding practices.
- Increase in intake of iron-rich food through diet diversity/quantity/frequency and/or fortified foods with focus on harnessing locally available resources.
- Testing and treatment of anaemia, using digital methods and point of care treatment, with special focus on pregnant women and school-going adolescents
- Mandatory provision of Iron and Folic Acid fortified foods in government-funded public health programmes
Way forward
- India’s nutrition programmes must undergo a periodic review.
- The Integrated Child Development Services (ICDS), which is perceived as the guardian of the nation’s nutritional well-being must reassess itself and address critical intervention gaps, both conceptually and programmatically, and produce rapid outcomes.
- The nutritional deficit which ought to be considered an indicator of great concern is generally ignored by policymakers and experts. Unless this is addressed, rapid improvement in nutritional indicators cannot happen.
Conclusion
- When a person is anaemic, the capacity of his blood cells to carry oxygen decreases. This reduces the productivity of the person which in turn affects the economy of the country. Therefore, it is highly important to cover Anaemia under National Health Mission.
Mains question

Q. “Every second adolescent girl has anaemia. Every second woman of reproductive age is anaemic”. In this context do you think Women’s empowerment will not have any meaning without tackling anaemia? Discuss.

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September 14, 2022
Patents in India
Context
- Increasing the efficiency of processing patent applications and wider academia-industry collaboration are crucial steps for patent system.
What is patent system?
- A patent system is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention.
Why are patents important?
- A patent is important because it can help safeguard our invention. It can protect any product, design or process that meets certain specifications according to its originality, practicality, suitability, and utility. In most cases, a patent can protect an invention for up to 20 years.
How to get patent?
- To get a patent, technical information about the invention must be disclosed to the public in a patent application.
- The patent owner may give permission to, or license, other parties to use the invention on mutually agreed terms.
- The owner may also sell the right to the invention to someone else, who will then become the new owner of the patent.
- Once a patent expires, the protection ends, and an invention enters the public domain; that is, anyone can commercially exploit the invention without infringing the patent.
Terms of Patent
- Patents may be granted for inventions in any field of technology, from an everyday kitchen utensil to a nanotechnology chip.
- An invention can be a product – such as a chemical compound, or a process, for example – or a process for producing a specific chemical compound.
- Patent protection is granted for a limited period, generally 20 years from the filing date of the application.
- Patents are territorial rights. In general, the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region.
How patents can support inventors and improve lives
- Recognize and reward: Patents recognize and reward inventors for their commercially-successful inventions. As such they serve as an incentive for inventors to invent. With a patent, an inventor or small business knows there is a good chance that they will get a return on the time, effort and money they invested in developing a technology. In sum, it means they can earn a living from their work.
- Economic opportunity: When a new technology comes onto the market, society as a whole stands to benefit – both directly, because it may enable us to do something that was previously not possible, and indirectly in terms of the economic opportunities (business development and employment) that can flow from it.
- Research and development (R&D): The revenues generated from commercially successful patent-protected technologies make it possible to finance further technological research and development (R&D), thereby improving the chances of even better technology becoming available in the future.
- Opportunities for business growth: A patent effectively turns an inventor’s know-how into a commercially tradeable asset, opening up opportunities for business growth and job creation through licensing and joint ventures, for example.
- Commercialization of a technology: Holding a patent also makes a small business more attractive to investors who play a key role in enabling the commercialization of a technology.
- Spark new ideas: The technical information and business intelligence generated by the patenting process can spark new ideas and promote new inventions from which we can all benefit and which may, in turn, qualify for patent protection.
- No freebies: A patent can help stop unscrupulous third parties from free riding on the efforts of the inventor.
What is KAPILA Initiative?
- Full form: KAPILA is an acronym for Kalam Program for IP (Intellectual Property) Literacy and Awareness.
- Guidelines for patent Filing: Under this campaign, students pursuing education in higher educational institutions will get information about the correct system of the application process for patenting their invention and they will be aware of their rights.
- Encouragement to students: The program will facilitate the colleges and institutions to encourage more and more students to file patents.
Thing to remember

Remember one thing, ‘KAPILA’ Program is related to IP awareness. It sounds much like an animal husbandry related initiative.

Way ahead
- As the patent system is a critical aspect of the national innovation ecosystem, investing in the patent ecosystem will help in strengthening the innovation capability of India.
- The right interventions should be made for the promotion of the quality of patent applications and collaboration between academia and industry.
Mains question

Q. A patent can help stop unscrupulous third parties from free riding on the efforts of the inventor. Discuss this statement in context of protection of innovative ecosystem in India.

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September 14, 2022
LGBTQ leap forward for positive future growth of human rights
Context
- Four years after landmark LGBTQ verdict: The march to full citizenship.
Why in news?
- On September 6, 2018, exactly four years ago, in Navtej Singh Johar and Ors v Union of India, a five-judge constitution bench of the Supreme Court, in a beautifully elaborate decision, liberated LGBTQI Indians from the darkness of Section 377 of the Indian Penal Code, 1860.
What is LGBTQ?
- LGBTQ is an initialism that stands for lesbian, gay, bisexual, and transgender. In use since the 1990s, the initialism, as well as some of its common variants, functions as an umbrella term for sexuality and gender identity.
What is Section 377 of the IPC?
- It reads – Unnatural offences: Whoever voluntarily has carnal intercourse against the order of nature with any man, woman or animal shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
- The terms “carnal intercourse” and “against the order of nature” are not defined precisely anywhere in the code.
Role played by the judiciary hitherto
- The Delhi High Court’s verdict in Naz Foundation vs Government of NCT of Delhi (2009) was a landmark in the law of sexuality and equality jurisprudence in India.
- The court held that Section 377 offended the guarantee of equality enshrined in Article 14 of the Constitution, because it creates an unreasonable classification and targets homosexuals as a class.
- In a retrograde step, the Supreme Court, in Suresh Kumar Koushal vs Naz Foundation (2013), reinstated Section 377 to the IPC.
- However, the Supreme Court in Navtej Singh Johar & Ors. vs Union of India (2018) declared that the application of Section 377 IPC to consensual homosexual behaviour was “unconstitutional”.
- This Supreme Court judgment has been a great victory to the Indian individual in his quest for identity and dignity.
- It also underscored the doctrine of progressive realisation of rights.
What’s next?
- Overarching legislation is needed to guarantee equality to all persons on the basis of sexual orientation, gender identity and expression, sex, caste, religion, age, disability, marital status, pregnancy, nationality, and other grounds.
- The law should impose obligations of equality and non-discrimination on all persons, public and private, and in the areas of education, employment, healthcare, land and housing and access to public places.
- It should provide for civil remedies to stop discriminatory behaviour, costs and damages, and positive action to make reparations.
- We need an equality law to define what equality would encompass.
- Supreme Court comes held in its privacy judgment in K.S. Puttuswamy v. Union of India (2017) that equality and liberty cannot be separated, and equality encompasses the inclusion of dignity and basic freedoms.
Way forward
- Schools and colleges must effect changes in curricula for a better understanding of the community.
- People of a different sexual orientation or gender identity often narrate harrowing tales of bullying, discrimination, stigma and ostracization.
- Gender-neutral restrooms should be compulsory in educational institutes and other places.
- Parents too need to be sensitised, because the first point of misunderstanding and abuse often begins at home, with teenagers being forced to opt for “conversion” therapies.
Conclusion
- Justice Chandrachud, speaking on the fourth anniversary of Johar and the journey ahead, while quoting the Beatles classic “All you need is love”, notes that “simply love is not enough”. Rights are necessary. Which will enhance dignity of the community.
Mains question

Q. “Silent segregation” on the grounds of gender, sexual orientation preferences are followed in several houses. Elucidate in context of LGBTQ issues. What Legal remedies are needed for its victims?

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September 13, 2022