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

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  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    Sub-Mission on Fodder and Feed

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: National Livestock Mission

    Mains level: Paper 3- Addressing the lack of quality and affordable fodder and feed through Sub-Mission on Fodder and Feed

    Context

    The government recently announced a Sub-Mission on Fodder and Feed.

    Why availability of good and affordable quality feed and fodder matters

    • A study by the Indian Grassland and Fodder Research Institute has observed that for every 100 kg of feed required, India is short of 23.4 kg of dry fodder, 11.24 kg of green fodder, and 28.9 kg of concentrate feed.
    • Low milk productivity: The lack of good quality feed and fodder impacts the productivity levels of cattle.
    • This is one of the chief reasons why Indian livestock’s milk productivity is 20%-60% lower than the global average.
    • High input cost: If we break down the input costs, we find that feed constitutes 60%-70% of milk production costs.
    • When the National Livestock Mission was launched in 2014, it focused on supporting farmers in producing fodder from non-forest wasteland/grassland, and cultivation of coarse grains.
    • However, this model could not sustain fodder availability due to a lack of backward and forward linkages in the value chain.

    Why Sub-Mission on Fodder and Feed is significant

    • As about 200 million Indians are involved in dairy and livestock farming, the scheme is important from the perspective of poverty alleviation.
    • The Sub-Mission on Fodder and Feed intends to create a network of entrepreneurs who will make silage (the hub) and sell them directly to the farmers (the spoke).
    • Bringing down the input cost: The large-scale production of silage will bring down the input cost for farmers since silage is much cheaper than concentrate feed.
    • Objective: The revised scheme has been designed with the objectives of increasing productivity, reducing input costs, and doing away with middlemen (who usually take a huge cut).
    • Since India has a livestock population of 535.78 million, effective implementation of this scheme will play a major role in increasing the return on investment for our farmers.

    About the Sub-Mission on Fodder and Feed

    • The scheme will provide 50% capital subsidy up to ₹50 lakh towards project cost to the beneficiary for infrastructure development and for procuring machinery for value addition in feed such as hay/silage/total mixed ration.
    • Private entrepreneurs, self-help groups, farmer producer organizations, dairy cooperative societies, and Section 8 companies (NGOs) can avail themselves of the benefits under this scheme.
    • The scheme can be used for covering the cost of infrastructure/machinery such as bailing units, harvester, chaff cutter, sheds, etc.

    Challenges and solution

    • Seasonal availability: A major challenge in the feed sector emanates from the fact that good-quality green fodder is only available for about three months during the year.
    • Fermenting green fodder: Ideal solution would be to ferment green fodder and convert it into silage.
    • Hence, under the fodder entrepreneurship program, farmers will receive subsidies and incentives to create a consistent supply chain of feed throughout the year.

    Conclusion

    The mission will help marginal farmers reduce their input costs and help them in increasing the return on capital employed.

  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    The message from the IPCC report

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: IPCC

    Mains level: Paper 3- What IPCC report seeks to convery

    Context

    The Intergovernmental Panel on Climate Change (IPCC) recently released the Working Group I contribution to the Sixth Assessment Report (AR6). It is the first of four that the Panel will issue over the next one and a half years.

    What does the report say?

    • Global surface temperature is now higher by 1.07oC since the pre-industrial era.
    • The impact of climate change on the atmosphere, oceans and land is unmistakably of human origin and this impact is picking up pace.
    • Carbon dioxide is the dominant source of warming.
    • Aerosols contribute to reducing the impact of warming by other greenhouse gases, by almost a third.
    • Methane reduction, while needed overall, is particularly significant only as part of the endgame as the drastic reduction of aerosols actually leads to an increase in warming.
    • The report expectedly projects an increase in climate extremes due to global warming, with heatwaves, extreme rainfall events and occurrence of extreme sea levels all expected to intensify and be more frequent.
    • A major finding of the report is that air pollution reduction and steep climate change mitigation are not complementary goals but require independent efforts over the short and medium-term
    • With the inclusion of the Indian Institute of Tropical Meteorology’s Earth System Model among the climate models used in AR6, India too has joined the climate modelling fraternity.

    About the net-zero emission targets

    •  The report’s clear message is that reaching net zero was not the determining factor for the world to limit itself to a 1.5oC , or 2oC, or indeed any specific temperature increase.
    • The report is clear that it is the cumulative emissions in reaching net zero that determine the temperature rise.
    • India’s Ministry for Environment, Forest and Climate Change was quick to note this point about net zero in a statement, adding that “historical cumulative emissions are the cause of the climate crisis that the world faces today
    • The limitations of the remaining carbon budget for 1.5oC are so stringent — a mere 500 billion tonnes of carbon dioxide for an even chance of keeping to the limit — that they cannot be met by promises of net-zero 30 years from now.
    • Equally, the disconcerting finding is that the world is set to cross the 1.5oC limit within 10-15 years.

    Implications for India

    •  India has contributed less than 5% of global cumulative emissions to date, with per capita annual emissions a third of the global average.
    • India is also the only nation among the G20 with commitments under the Paris Agreement that are even 2oC warming-compatible.
    • India needs its development space urgently to cope with the future, one where global temperature increase may be closer to 2oC.
    • Even if India completely stops its emission which is 3 billion tonnes in carbon dioxide equivalent terms, for the next 30 years, with others’ emissions remaining the same, will buy the world less than two years of additional time for meeting the Paris Agreement temperature goals.

    Way forward

    • Equity: Focusing on definite cumulative emission targets keeping equity and historical responsibility in view,
    • Immediate reduction by developed countries: Immediate emission reductions by the developed countries with phase-out dates for all fossil fuels.
    • Investment: Massive investment in new technologies and their deployment,
    • Climate finance: a serious push to the mobilisation of adequate climate finance is the need of the hour.

    Conclusion

    This is the message that the IPCC report has sent to this year’s climate summit and the world. The message is a dire warning, all the stakeholders should heed the warning.

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  • Foreign Policy Watch: India-Afghanistan

    For India, there will be no dearth of balancing opportunities in Afghanistan

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Implications of situation in Afghanistan for India

    Context

    The rapid fall of Afghanistan after the withdrawal of the US sent shockwaves across the region.

    Cause of concern for India

    • The Taliban’s entry into Kabul, marks the beginning of a new phase in the relationship between Afghanistan and India.
    • Recent developments in South Asia certainly point to a recurring dynamic between Afghanistan and India.
    • The restoration of Taliban rule in Afghanistan with Pakistan’s support undoubtedly presents some very serious potential challenges for Indian security.
    • However, a measure of strategic patience could help India cope with the adverse developments in Afghanistan and find ways to secure its interests in the near future.
    • For India, a bigger question mark will be about the Taliban’s renewed support for international terrorism and Pakistan’s re-direction of jihadi groups that have allegedly fought with the Taliban towards India.

    Afghanistan from 1979 to 2001 and how it changed the subcontinent

    • At the end of 1979, the Soviet Union launched a massive military invasion to protect a communist regime in Kabul.
    • The US and Pakistan responded by unleashing a religious jihad that compelled Russia to withdraw by 1989.
    • Pakistan’s critical role in the Afghan war against Russia allowed Pakistan to secure the political cover for the country’s acquisition of nuclear weapons.
    • The Pakistan army turned the jihadi armies to gain control of Afghanistan and launched a proxy war against India, especially in the Punjab and Kashmir regions.
    • The turbulence of the 1990s saw deepening conflict between India and Pakistan.
    • Al Qaeda, hosted by the Taliban, launched terror attacks against the US on September 11, 2001.
    • Swift US retribution brought an end to Taliban rule and compelled Pakistan to reconsider its policies.
    • After 2001, there has also been a significant expansion of the India-US strategic partnership.
    • By the end of the decade, though, the Pakistan Army had swung back to its default positions — renewed support for the Taliban in Afghanistan.
    • Pakistan also teased an increasingly war-weary Washington into a negotiation with the Taliban for a peace settlement.

    Way forward for India

    • Patience: Like all radical groups, the Taliban will have trouble balancing its religious ideology with the imperatives of state interests.
    • India would want to carefully watch how this tension plays out.
    • Watch the relation between Pakistan and Taliban: Equally important is the nature of the relationship between the Taliban and Pakistan.
    • The Taliban is bound to seek a measure of autonomy from Pakistan, India will have to wait.
    • Prepare for cross-border terror: India must fully prepare for a renewal of cross-border terror, but there is a lot less global acceptance of terrorism today than in the permissive 1990s.
    • No major power would like to see Afghanistan re-emerge as a global sanctuary of terror.
    • The world has also imposed significant new constraints on Pakistan’s support for terror through mechanisms like the Financial Action Task Force.
    • Unlike in the 1990s, when Delhi simply absorbed the terror attacks, it now shows the political will to retaliate forcefully.
    • Regional geopolitical alignment: It is also important to note that the US and the West will continue to have a say in shaping the international attitudes towards the new regime.
    • The Taliban and Pakistan appear to be acutely conscious of this reality.

    Conclusion

    For a patient, open-minded and active India, there will be no dearth of balancing opportunities in Afghanistan.

  • Electoral Reforms In India

    Criminalisation of politics

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Powers of ECI

    Mains level: Paper 2- Electoral reforms in India

    Context

    According to the Association for Democratic Reforms (ADR), 233 MPs in the current Lok Sabha are facing criminal charges, up from 187 in 2014, 162 in 2009, and 128 in 2004. Recently, the Supreme Court has imposed fines on political parties for failing to comply with its orders regarding complete disclosure of their candidates’ criminal history.

    Order adds strength to Election Commission

    • Through the order in a recent case, the SC has put a new onus on the Election Commission to do something concrete, for example, create a phone app to display the detailed criminal history of any contesting candidate.
    • This should be accompanied with a separate cell in the ECI to monitor the compliance of all the political parties regarding this; any breach should be brought to the attention of the SC without delay.

    Why legislature and political parties are reluctant?

    • Two excuses: The legislature has been very slow in addressing this issue, and political parties remain extremely reluctant to change their ways, citing two major excuses.
    • Winnability of candidate: “Winnability” of candidates is the first reason.
    • The logic of a candidate with criminal charges doing good for the people of a constituency is dubious at best.
    • The winnability clause is an attempt by the party to absolve itself of all blame and put the onus of sending a criminally charged candidate to Parliament solely on the voter.
    • Innocent until proven guilty maxim: The other reason offered by political parties is summarised by the maxim of Indian law, which is that any accused is innocent until proven guilty.
    • It is argued that most criminally accused candidates are the victims of “vendetta politics”.

    Issues with allowing criminals to contest election

    • The logic of a candidate with criminal charges doing good for the people of a constituency is dubious at best.
    • Violation of right to equality under Article 14: There were 4.78 lakh prisoners (as of December 2019) of whom 3.30 lakh were under trial, i.e. not yet proven guilty.
    • Yet, their fundamental rights — their right to liberty, freedom of movement, freedom of occupation and right to dignity — are curbed completely.
    • An “innocent” undertrial cannot vote, but a man chargesheeted for murder can even contest election from jail.
    • These blatant double standards are a clear violation of Article 14, which guarantees to all citizens equality before the law.

    Suggestions

    • ECI suggestion on vendetta politics: The ECI has suggested some safeguards against vendetta politics.
    • First, only offences that carry an imprisonment of at least 5 years are to be considered.
    • The case against the candidate should have been filed at least six months before the scheduled elections for it to be considered.
    • And finally, a competent court must have framed the charges.
    • Fast-track court: An alternative solution would be to try cases against political candidates in fast-track courts.
    • The Supreme Court had sent a directive in 2014, directing that cases against political candidates must be completed within a year, failing which the matter should be reported to the Chief Justices of the respective High Court.
    • This is a matter entirely in the judicial domain.
    • Barring political parties: The Supreme Court has, in the recent order stopped short of drastic steps by rejected the suggestion to direct the Election Commission to bar political parties that fail to comply with criminalisation protocols by using its authority derived from Clause 16A of the Election Symbols Order.
    • This step, the SC reasons, would be going too far and infiltrating the domain of the legislature.

    Conclusion

    The legislature and the judiciary need to do more to curb the menace of criminalisation of politics.


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  • Start-up Ecosystem In India

    Startup ecosystem can help India become powerhouse of global economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Unicorn club

    Mains level: Paper 3- How startup ecosystem can help transform India

    Context

    With 62 per cent of the population in the working-age group and 54 per cent below the age of 25, we have the advantage of leveraging the skill and ability of our youth to drive the nation forward through productive output and innovation.

    Significance of startup ecosystem in the country

    • In 2021 alone, Indian startups have so far raised upward of $20 billion in funding.
    • Today, India is home to more than 40,000 startups and is building a robust tech and internet infrastructure.
    • The last decade-and-a-half has witnessed a significant change in the landscape — from the founding of new startups, to global investor interest, to the advances made in infrastructure and policies.
    • Global investors too are realising the potential upside in India’s huge, under-penetrated market as the country steadily makes a place for itself as a leading R&D hub for many Silicon Valley companies.
    • Amid the Covid-19 pandemic, Indian startups have rapidly innovated to provide indigenous, tech-enabled solutions to combat challenges from testing kits and ventilators to remote monitoring, and preventive technologies, as well as innovations in supply chain management, logistics, and education.

    Factors driving startup economy in India

    • The steady rise of Indian IT companies in the 2000s, a large talent pool of a skilled workforce, increased expendable income, and rising capital inflows have collectively contributed in large part.
    • Young generation: Moreover, the ability of the young generation to take risks, move fast, and disrupt things without fear, has become our biggest asset today.
    • Increasing internet use: In the next five years and likely to have an estimated 850 million internet users by 2030, the country stands at the cusp of unprecedented economic growth.

    How it helps economy

    • The proliferation of this startup economy has brought with it new business opportunities, innovation, tech-centric approaches and job creation across sectors.
    • A mature startup ecosystem, with seasoned entrepreneurs and technology-led solutions, paves the way for innovation and expanding its global footprint.
    • While value creation lies at the centre of entrepreneurship, Indian startups are also taking big strides in building synergies and partnerships with global entities, further demonstrating the evolution of the startup ecosystem and its appetite for innovation, collaboration and disruption.
    •  In fact, one of the paradigm shifts brought about through technology during the pandemic has been systemic shift to online education and remote learning at scale.
    • Solutions built by Indian startups saw widespread adoption not just domestically but also on a global scale, firmly establishing the country as a cornerstone of tech and innovation in the world.

    Suggestions

    • Educations and reskilling: In order to transition beyond the current capabilities and achieve the demographic dividend, education, and reskilling, and upskilling of our workforce is crucial.
    • Policy environment: Apart from the domestic policy environment, the global environment and technological advances are also changing, and it is imperative that India is prepared for this revolution.
    • Foster entrepreneurship: Apart from policy-level decisions that promote entrepreneurship, the onus is also on India’s corporate sector to foster entrepreneurialism, and create synergies to build impactful technology solutions, sustainable and resource-efficient growth.
    • Inclusion and sustainability: As country stands at the cusp of unprecedented economic growth, speed, inclusion, and sustainability are key elements in this mission.
    • Tap the potential of rural and semi-urban India: The collective future efforts of the public and private sectors to improve physical and digital connectivity will also help unlock the untapped potential of rural and semi-urban India to truly lead Industry 4.0 and beyond.
    • Focus on goals of national importance: In view of achieving this transformation at scale, the Indian startup ecosystem must focus on developing solutions that allow businesses in key sectors to meet goals of national importance.

    Conclusion

    Coupled with the nation’s focus on strengthening digital infrastructure in healthcare and education, and boosting employment in manufacturing, there is little doubt that India@100 will be a powerhouse of the global economy.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Issue of the oath of an elected representative

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Third schedule of Constitution

    Mains level: Paper 2- Oath of an elected representative

    Context

    Some Cabinet Ministers in Karnataka who took oath recently stood out from the rest.  All these oaths run against the spirit of the Constitution.

    Background of agnostic Constitution

    • The public officials who took office under the Government of India Act, 1935 had to take oath which had no mention of God.
    • During the Constituent Assembly debate, B.R. Ambedkar proposed the Preamble, “We, the people of India…”.
    •  H.V. Kamath moved an amendment to the Preamble, “In the name of God, we, the people of India…”.
    • To this proposal, another member, A. Thanu Pillai said that if this amendment is accepted it would affect the fundamental right of freedom of faith.
    • He said that a man has a right to believe in God or not, according to the Constitution.
    • H.N. Kunzru opposed Kamath’s amendment stating that in a matter that vitally concerns every man individually, the collective view should not be forced on anybody.
    • The amendment was defeated, thereby excluding ‘God’ from the Preamble.
    • Thus, our founding fathers gave us an agnostic Constitution.

    What are provisions in Consitution

    • The public officials who took office under the Government of India Act, 1935 had to take oath which had no mention of God.
    • However, the framers of the Indian Constitution rejected this conception of secularism.
    • Constitution gives office-holders an option to swear in God’s name if they so wished.
    • The Supreme Court of India observed in 2012 that the oath by an elected representative should be taken “in the name of God” if the person is a believer or should be “solemnly affirmed” if the person is a non-believer.
    • The Supreme Court said that the oath of an elected representative should be in strict compliance with the wordings of the Constitution. 

    Way forward

    • As the Republic belongs to all the citizenry, irrespective of whether he is a theist, atheist or agnostic, and irrespective of his caste or religion, a person occupying a constitutional post should take oath in the format of ‘“solemnly affirm”.
    • The Constitution should be amended accordingly.

    Conclusion

    If a person takes the oath in the name of a God affiliated to a particular religion or caste, the citizenry cannot expect the absence of affection or ill-will from him. The allegiance of a person holding a constitutional post should only be to the Constitution.

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

    Learning from China

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Lessons from China's economic progress

    Context

    As we look back on our own journey after independence and feel proud of our achievements, wisdom lies in also looking around to evaluate how other nations have performed, especially those which started with a similar base or even worse conditions than us.

    How India’s neighbouring countries have performed?

    • Independent India has done better than Pakistan if measured on a per capita income basis:
    • Comparison with Pakistan: India’s per capita income stood at $1,960 (in current PPP terms, it was $6,460) in 2020, as per the IMF estimates, while Pakistan’s per capita income was just $1,260 (in PPP terms $5,150).
    • Comparison with Bangladesh: Bangladesh, whose journey as an independent nation began in 1971, had a per capita income of $2,000 (though $5,310 in PPP terms), marginally higher than India, and certainly much higher than Pakistan in 2020.
    • Comparison with China: The real comparison of India should be with China, given the size of the population of the two countries and the fact that both countries started their journey in the late 1940s.
    • By 2020, China’s overall GDP was $14.7 trillion ($24.1 trillion in current PPP terms), competing with the USA at $20.9 trillion.
    • India, however, lags way behind with its overall GDP at $2.7 trillion ($8.9 trillion in PPP terms).
    • The quality of life, however, depends on per capita income in PPP terms, with the USA at $63,420, China at $17,190 and India at $6,460.

    What made the difference between India and China?

    • India adopted a socialist strategy while China took to communism to provide people food, good health, education, and prosperity.
    • China, having performed dismally on the economic front from 1949 to 1977, started changing track to more market-oriented policies, beginning with agriculture.
    • Agriculture reforms: Economic reforms that included the Household Responsibility System and liberation of agri-markets led to an annual average agri-GDP growth of 7.1 percent during 1978-1984.
    • Reform in the non-Agri sector: Success in agriculture reforms gave political legitimacy to carry out reforms in the non-agriculture sector.
    • Manufacturing revolution: The success of reforms in agriculture created a huge demand for manufactured products, triggering a manufacturing revolution in China’s town and village enterprises.
    • Population control measures: China adopted the one-child norm from 1979-2015.
    • As a result, its per capita income grew much faster.
    • India’s attempts to control its population succeeded only partially and very slowly.
    • India’s sluggish performance when compared to China raises doubts about its flawed democratic structure that makes economic reforms and implementation of policy changes more challenging, unlike China.

    Way forward for India

    • Liberating agri-markets is part of the reform package that China followed. That’s the first lesson.
    • Increase purchasing power of rural areas: Even for manufacturing to grow on a sustainable basis, we have to increase the purchasing power of people in rural areas.
    • This has to be done by raising their productivity and not by distributing freebies.
    • Investment in various areas: Increasing productivity requires investments in education, skills, health and physical infrastructure, besides much higher R&D in agriculture, both by the government as well as by the private sector.
    • Create institutional setup: This requires a different institutional setup than the one we currently have.

    Conclusion

    India’s sluggish performance when compared to China raises doubts about its flawed democratic structure that makes economic reforms and implementation of policy changes more challenging, unlike China. But India has lessons to learn from China.

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Analysing decline of the role of Parliament in present context

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Constituent assembly

    Mains level: Paper 2- Decline in the functioning of legislature

    Context

    This 75th year of India’s Independence feels like what its first year of freedom may have been like. The pandemic era defined by large-scale loss, lack of adequate state infrastructure and deep economic uncertainty — on the face of it — is reminiscent of the Partition years.

    Declining role of Parliament

    1) Low functioning

    • In 2020, Parliament sat in session for 33 days.
    • According to PRS Legislative Research (PRS), in the 2021 Monsoon Session, the Lok Sabha was scheduled to work for six hours per day for 19 days.
    • Instead, it sat for 21 hours in total or 21 per cent of what was conceived.
    • Brazil’s Parliament used an application called Infoleg during the pandemic and functioned at higher rates than in pre-pandemic times.
    • The United States Congress met physically for 113 days in 2020. In the year before, they met for 130 days.
    • In the past 10 years, the Rajya Sabha has functioned for less than 25 per cent of its scheduled time.

    2) Neglect of the role of Parliamentary Committees

    • According to PRS, none of the 15 bills introduced in this Monsoon Session 2021 has been referred to a Parliamentary Committee.
    • In this current Lok Sabha commencing 2019, only 12 per cent of the bills introduced have been referred to committee.
    • By contrast, the 16th Lok Sabha (2014-2019) had 27 per cent and the 15th Lok Sabha (2009-2014) had 71 per cent of bills referred to standing committees.
    • More significantly, fewer and fewer drafts of key legislation are being debated across the political aisle before becoming law.

    3) No discussion of supplementary budget

    • In this Lok Sabha, nine minutes were spent discussing and passing the supplementary budget that included a Rs 15,750 crore Covid-19 Emergency Response and Health System Preparedness Package.
    • This is the functioning of the legislature — increasingly convened less and debates are few.

    Contrast with functioning of Parliament when country faced partition

    •  The drafting of India’s Constitution started in December 1946, when the Constituent Assembly first met, seven months before Independence in August 1947.
    • What makes these years of our constitutional founding so dramatic, was that the backdrop to our founding was as torturous as this pandemic era.
    • As Delhi was slowly filling up with refugees, India’s dual function legislature functioned as Parliament by morning and Constituent Assembly in the afternoon.
    • The first Constituent Assembly was meant to comprise 296 members, but its initial session had only 210 members in attendance.
    •  The assembly faced a boycott by the rest of the members.
    • The Constituent Assembly caucus of the founding Congress Party included many members from outside the party.
    • These members from across the political-ideological spectrum were able to arrive at decisions using a mixture of techniques of problem-solving, persuasion, bargaining and politicking.

    Conclusion

    The functioning of the Partition era Constituent Assembly is held up as a model of nation-building. Our political class today needs to learn from the makers of our Constitution and stop the declining role of our Parliament today.

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  • Direct Benefits Transfers

    How e-RUPI can transform government’s welfare schemes

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: e-RUPI

    Mains level: Paper 3- e-RUPI and its advantages

    Context

    Recently e-RUPI was launched by the Prime Minister.

    About e-RUPI

    • It is a digital prepaid, purpose, and person-specific payment utility. 
    • Built on the UPI platform, e-RUPI is easy to scale by the issuer.
    • At the point of presence, the verification code received by the beneficiary is shared with the service provider to authenticate and authorize the transaction: Contactless, real-time payment, and online settlement of funds into the service provider’s bank account.
    • Fourteen leading banks have already integrated it with their systems.
    • e-RUPI is almost custom-designed for school voucher programs.
    • The efficacy of these programs is well established in many countries. 

    Advantages

    The adoption of e-RUPI in various government programs will enhance business efficiency, simplicity, transparency, and accountability in these programs.

    1) e-RUPI can make cash transfer purpose and person-specific

    • Policymakers have debated whether direct cash transfers deliver benefits more efficiently than in-kind transfers like the Public Distribution System (PDS) and fertilizers.
    • e-RUPI could break the policy logjam with the following advantages:
    • 1) It will make cash transfers purpose- and person-specific.
    • 2) Freeing them from dependence on bank accounts.
    • 3) Providing visibility from the time of issue until redemption.

    2) e-RUPI can make PDS more efficient

    • The inefficiency of PDS is rooted in high overhead costs, leakages, exclusion, and inefficiencies.
    • A food-specific e-RUPI voucher will allow beneficiaries to buy rations from an outlet of their choice.
    • It will also help promote the One Nation, One Ration Card.
    • The move will also help in removing price distortion and the redemption of the voucher at market price by merchants within and outside the PDS network.

    3) Streamline fertilizer subsidy

    • e-RUPI will enable farmers to buy fertilizer at nominal prices with direct credit of the subsidy amount into the account of the authorised dealers.
    • As far back as 2011, a task force on direct transfer of subsidies on kerosene, LPG and fertilisers headed by Nandan Nilekani had suggested a roadmap for direct cash transfer of fertiliser subsidies in a phased manner.
    • The e-RUPI will allay apprehensions about creating an IT infrastructure, managing nearly 3,00,000 fertilizer sale points, the collapse of dealer network due to liquidity squeeze in the event of subsidy payments getting delayed, and a complex system of timely credit of subsidy into an estimated 129 million Aadhaar-linked bank accounts of farm households.

    4) Basic income support

    • The Covid-19 pandemic has revived interest in Universal Basic Income (UBI).
    • The lockdowns to contain the pandemic exposed the poor to acute distress, due to loss of means of livelihood.
    • e-RUPI can mitigate their stress by rapidly distributing food and cash vouchers at scale.

    5) Ayushman Bharat

    • In the Ayushman Bharat healthcare initiative beneficiaries can be given e-RUPI vouchers of designated value tenable at empanelled healthcare facilities, providing them portability and facility choice.
    • The service provider will benefit from the immediate payment.

    Way forward

    • Ownership agency: The Aadhaar experience suggests ownership must vest with a specific agency.
    • Make distribution and acceptance compatible: Making the distribution and acceptance of e-RUPI incentive-compatible is recommended, as demonstrated by the popularisation of prepaid telephony by the telecom industry.
    • Light regulation and competition promotion: Light regulation and the opening of e-RUPI to the competition will spur innovation and adoption.
    • All banks, small and big, NBFCs, non-bank PPI issuers, and telcos may be allowed to issue it later.

    Conclusion

    e-RUPI opens up a world of opportunities to the government, people, and businesses to provide, avail, and pay for services seamlessly.

  • Foreign Policy Watch: India-China

    Understanding the anxieties behind Chinese aggression towards India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Quad

    Mains level: Paper 2- India-China relations

    Context

    Chinese President Xi Jinping made a surprise visit to Tibet on July 21, signalling the seriousness with which China continues to take its Himalayan border dispute with India.

    Understanding China’s strategic challenges and intensions

    • Demonstration of political confidence through aggression: More than a year after the clash at Galwan Valley, efforts to resolve the border crisis continue to move slowly.
    • The Chinese side has previously failed to complete troop withdrawals and revert to the status quo that the Indian side believed China agreed to.
    • China’s behaviour has been calculated to demonstrate political confidence.
    • Worsening strategic environment for China: Seen from Beijing, the strategic environment for China is beginning to worsen in South and Central Asia.
    • As the US withdraws and the Taliban advances in Afghanistan, China fears the prospect of instability and an emerging haven for terrorism directed against its policies in Xinjiang.
    • Even as China seeks to scale back the debt-laden BRI, such instability may also result in Beijing increasing its already overstretched external commitments — particularly in the security domain.
    • Re-emergence of Quad: China is deeply worried by the re-emergence and strengthening of multilateral opposition to China, and the Quadrilateral Security Dialogue (or “Quad”) between the US, Japan, Australia and India.
    • For China, this represents a persistent threat not only economically and in foreign policy, but also militarily along its maritime periphery in the South and East China Seas, as well as the Taiwan Strait.
    • As US multilateral cooperation with its partners has increased, Beijing has come to increasingly see itself as beset by threats on all sides.

    China’s 2 possible responses to strategic challenges and its implications for India

    • 1) Wolf warrier diplomacy: So far, the response from China’s new class of “wolf warrior” diplomats to this emerging strategic challenge has been to only grow more assertive in rhetoric and behaviour.
    • China’s domestic politics: Response of wolf warrior diplomats may seem perplexing, given that it has served only to alienate other countries and isolate China further.
    •  China’s domestic politics in the lead up to the 20th Congress will mean that its leaders, diplomats and generals will be displaying maximum nationalistic fervour.
    • Implications for India: This may well mean China taking political and policy decisions, which in a normal season they would not because doing so could compromise Beijing’s longstanding diplomatic and strategic goals, including in dealings with India.
    • 2) Moderate approach to improve strategic position: But if instead of aggressive posture, China decided that it was better domestic politics to improve China’s strategic position in Asia amid its competition with Washington, Beijing’s diplomats may yet adopt a more moderate approach, including with India.
    • Implications for India: If stability can be restored to the China-India strategic relationship, this could provide a window for Asia’s two mega-economies to reopen their markets to each other.

    Conclusion

    Indeed, the choice China makes between these two alternatives will have implications for India and the rest of the world in their dealing with China.


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