Note4Students
From UPSC perspective, the following things are important :
Prelims level: India- France joint exercises
Mains level: India- France relations and strategic partnership
Context
- The celebration by India and France of 25 years of their strategic partnership (January 26) presents an important opportunity for both to introspect on their relations. Signed in 1998, the time-tested strategic partnership has continued to gain momentum over shared values and aspirations of peace, stability and, most importantly, their desire for strategic autonomy. There are no real substantive disagreements between the two nations.
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France a largest foreign investor in India
- France has emerged as a key trading partner of India with annual trade of $12.42 billion in 2021-22.
- It is the 11th largest foreign investor in India with a cumulative investment of $10.31 billion from April 2000 to June 2022, which represents 1.70% of the total foreign direct investment inflows into India.
France a key defence trading partner of India
- Second largest defence supplier in 2017-2021: France has emerged as a key defence partner for India, becoming the second largest defence supplier in 2017- 2021. France has emerged as a major strategic partner for India with crucial defence deals and increased military to military engagement.
- For example: A key example of this is the inducting of the French Scorpene conventional submarines, being built in India under technology transfer agreement of 2005, and the Indian Air Force having received 36 Rafale fighter jets.
- Joint venture for aircraft manufacturing: The Tata group has also tied up with Airbus to manufacture C-295 tactical transport aircraft in Vadodara, Gujarat. This line is expected to be expanded into other civilian and military aircraft manufacturing in a joint venture with France.
- Regular joint exercises: These relations are further fortified with the robust network of military dialogues and regularly held joint exercises Varuna (navy), Garuda (air force), and Shakti (army).
- France is a willing partner for India: The importance of the defence partnership was further underscored in the recent statement by the French Ambassador to India, Emmanuel Lenain that France is a willing partner for India as it builds its national industrial base for the defence industry and for critical strategic defence projects.
Maritime ties
- Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region: India and France are resident powers of the Indian Ocean and in the Indo-Pacific. The importance of the Indian Ocean Region was visible during the visit of French President Emmanuel Macron’s visit to New Delhi in 2018 when the leadership of both countries welcomed the Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region which presented a blueprint for a strengthening of ties.
- Like-minded partners: In operational terms, Franco-Indian joint patrolling in the Indian Ocean signals New Delhi’s intent to engage with like-minded partners in expanding its footprint in the Indian Ocean.
- Common vision for open Indo-Pacific: Maritime security has further gained momentum as both countries have articulated their common vision for a free, fair and open Indo-Pacific. Both countries seeks to provide comprehensive solutions for maritime security, regional cooperation, climate change adaptation.
- Common concerns over China’s aggressive behaviour: Both countries share concerns over the rise of China and its aggressive behaviour, regionally and globally, and have committed to working together to ensure that there is no imbalance in the Indo-Pacific
- Indo-Pacific Trilateral Development Cooperation Fund: India and France in September 2022 agreed to set up an Indo-Pacific Trilateral Development Cooperation Fund that will support sustainable innovative solutions for countries in the region. The two partners have formed a trilateral grouping with the United Arab Emirates to ensure maritime domain awareness and security from the east coast of Africa to the far Pacific.
- Nuclear cooperation: France was among the first countries with which India signed a civil nuclear deal. Paris also played a critical role in limiting India’s isolation in the non-proliferation order after the 1998 nuclear tests.
- Support for India’s bid for permanent membership of UNSC: In a sign of expanding cooperation, France supports India’s bid for permanent membership of the United Nations Security Council as well as its entry into the Nuclear Suppliers Group.
- India supported France in the Paris Agreement: An area of importance for both is climate change, where India has supported France in the Paris Agreement expressing its strong commitment towards mitigating climate change impact. New Delhi and Paris, as part of their joint efforts on climate change, launched the International Solar Alliance in 2015.
- Deepening cooperation in complex geological order: As the complexities in the international geopolitical order have emerged, both countries have worked towards a deepening and broadening of their cooperation.
Way ahead
- India’s partnership with France is built on common values and goals.
- Both have underlined the importance of maintaining strategic autonomy with a shared understanding of global risks in many domains.
- There is a high-level India-France political dialogue that is ongoing in defence, maritime, counterterrorism and the Indo-Pacific.
- They are now forging ahead with cooperation in issues such as digitisation, cyber, green energy, a blue economy, ocean sciences, and space.
Conclusion
- India and France understand each other’s interests and dependencies, be it in relation to China or Russia. In the marking of a long strategic partnership, a common interest in enhancing strategic autonomy and improving resilience, there is much ground ahead for further collaboration.
Mains question
Q. India’s partnership with France is built on common values and goals. In recent times, France has emerged as a key defence trading partner of India. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India- Nordic cooperation for Green transition
Context
- Over the last decades, Nordic countries have been pioneering in green technologies. Over the last decades, Nordic have also been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, batteries and carbon capture and storage solutions that are essential for the world to succeed in the green transition it desperately needs. Together, the Nordics and India can deliver key technologies and solutions to stop climate change and boost green growth.
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India- Nordic connect
- Nordic-India Summit: At the Nordic-India Summit held in Copenhagen in May 2022, the five Nordic Prime Ministers and India’s Prime Minister Narendra Modi agreed to intensify cooperation on digitalisation, renewable energy, maritime industries, and the circular economy.
- Joint Nordic solutions for green transition: Modi expressed an interest in joint Nordic solutions that can support India’s green transition.
- Knowledge exchange and cooperation: It is very much with this in mind that, the Trade Ministers of Norway and Finland, are currently visiting India together During their visit, they aim to showcase the added value to the partnership can bring to India and learn from the impressive innovations and digital solutions being developed in India.
- Ambition to increase collaboration: They have business delegations and companies that are leaders within sectors such as clean energy, circular economy, digitalisation, tourism, and the maritime sector. They have great ambitions for increased collaboration with India.
- Nordic business community in India is also growing: The most valued and renowned Nordic businesses are already operating in India and have made substantial investments. There are now 240 Norwegian and Finnish companies in India.
Trade links that can grow
- India a priority country for Finland: The past year has seen a significant rise in trade and investments between Finland and India, and India has grown to become a priority country for Finland.
- For instance: Finland opened a new consulate General in Mumbai. This further increases the number of Nordic representations in India’s commercial capital and will contribute to strengthening India-Finnish ties.
- Trade between Norway and India has doubled in the last three years: Finnish companies such as Nokia and Fortum see India as their largest growth market now and have some of their most significant investments in India. The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors (around $17.6 billion).
- Number of investments is increasing rapidly: The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been declined as a focus country. Almost ₹1,500 crore have been invested so far in India through the climate investment fund, and the number of investments is increasing rapidly.
- Finland, as a member of the European Union (EU), is a part of the EU-India FTA negotiations, and Norway is negotiating through the European Free Trade Association.
- Trade in services is an area of significant potential, especially with tourism, education, IT, energy, maritime and financial services.
- As India takes rapid strides into a green, digital, and innovative future, Nordic countries such as Finland and Norway stand ready to share experiences and be a part of India’s transition.
Conclusion
- Although Nordic countries are significantly smaller than India population-wise and a located on the other side of the globe, they have world-leading technologies and expertise to other. Technologies and innovations that are successful and are scaled-up in India can easily be transferred to other parts of the world. Together, the Nordics and India can be the powerhouse of the green transition globally.
Mains question
Q. Over the last decades, Nordic countries have been pioneering in green technologies. Together, the Nordics and India can power the green transition the world needs. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indus river system
Mains level: Indus Water Treaty
Context
- Indus Waters Treaty (IWT) made it the headlines recently. As India issued a notification to Pakistan for modification to the treaty, speculations are rife that the treaty is showing signs of inefficacy and that cracks are visible on the sole bridge between the two nuclear neighbours. On the other hand, for many in the hydro-diplomacy community, the IWT remain a stellar example for asserting that nations can cooperate for managing their shared rivers even with mutual mistrust and hostile political relations.
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What is Indus Water Treaty (IWT)?
- The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
- According to this agreement, control over the water flowing in three eastern rivers of India the Beas, the Ravi and the Sutlej was given to India.
- The control over the water flowing in three western rivers of India the Indus, the Chenab and the Jhelum was given to Pakistan
- Intergovernmental negotiations to rectify material breach of the treaty: India issued a notice to Pakistan on 25th January 2023 through its commissioner to the bilateral Permanent Indus Commission suggesting that Pakistan should enter intergovernmental negotiations within 90 days to rectify the material breach of the treaty under Article 12(3) of IWT.
- Government-to-government negotiation before accepting the involvement of a neutral expert: India defended its move by stating that it was adhering to the provision under the treaty for a graded mechanism for handling an issue of concern as it interpreted it. Therefore, it asked for a government-to-government negotiation before accepting the involvement of a neutral expert and finally taking it to a court of arbitration.
Why such move?
- Pakistan initially sought a neutral expert and then backtracked: In India, the perceived root cause for this present move is that Pakistan initially sought a neutral expert to examine the technical objections that it had raised on India’s Kishanganga and Ratle Hydropower projects but then backtracked and asked for adjudication through a court of arbitration.
- Despite India’s efforts Pakistan refused to negotiate: Despite repeated efforts by India to negotiate at consecutive meetings of the Permanent Indus Commission, Pakistan refused to budge.
- Pakistan has always preferred the route of arbitration: This is of consequence since Pakistan has always preferred the route of arbitration rather than a graded approach in the past with the involvement of a neutral expert before submitting to arbitration.
- Pakistan’s repeated stance of seeking arbitration is prejudicial and pernicious: Indian strategic experts have called Pakistan’s repeated stance of seeking arbitration as prejudicial and pernicious while accusing the World Bank that it has allowed Pakistan to run riot in the last few years.
The role of World Bank?
- Brokered by WB: The long-standing Indus Waters Treaty (IWT), a first-of-its-kind arrangement that was brokered by the World Bank between India and Pakistan for sharing the waters of the Indus system,
- Signatory to the treaty to maintain ambivalence: The World Bank, as a signatory to the treaty, has maintained ambivalence and has yielded to both demands by appointing a neutral expert and a chairman for the court of arbitration.
- Legal risk in duality of discussing and resolving: This has created a particularly confounding situation due to the initiation of two mutually-exclusive tracks for discussing and resolving the thorny issues. The Bank also recognised the practical and legal risks that this duality poses.
Mistrust and mismanagement
- IWT concerns linked with National security and sovereignty: In the last two decades, both governments have raked up their concerns with the IWT, often coupling the Indus waters with national security and sovereignty with concerns emerging from the highest levels of governments at times.
- Pakistan’s accusation: Pakistani officials and ministers on their part have issued statements accusing India of creating water woes in Pakistan by allowing sudden releases of water without prior notification as was the case in 2019.
- Pakistan has also been apprehensive about two projects by India: The Baglihar and Kishanganga Hydroelectric Project (HEP), accusing India of acquiring the power to affect the timing and flow of water into Pakistan on rivers that belong to it under the provisions of IWT.
- Misplaced developmental priorities of Pakistan: The politicisation of the IWT is systematic and has been occurring in a synchronised way, especially in Pakistan due to their misplaced developmental priorities.
- Lack of ecosystems approach
Conditions that underlie any successful transboundary water negotiation process
- Parties actively recognise their interdependencies;
- Parties agree to explore competing and often conflicting values and interests and invent creative options for mutual gains; and
- Parties agree to create mechanisms to monitor the implementation of the agreement and adapt the agreement to address new issues as they emerge.
Climate change is often neglected in politicization of the water issues
- The newer challenges of water governance are emerging. Water cannot be looked at as a stock of resource to be stored for human convenience, and released as per human will.
- Today, whether it is in the Ganges or in the Indus delta regions, there is hardly any acknowledgement that upstream constructions and climate change are wreaking havoc on delta livelihoods.
- Pakistan is so embroiled in the politics of water that they have become oblivious that they are losing a living heritage, the Palla fish The decline in catch is affecting the livelihoods of the fishing community.
- Moreover, higher glacial melt due to global warming around the headwaters in the Himalayas is slated to increase flow in the short run but will be a threat to water security in the long run due to scarcities.
- Therefore, all these bigger climatic threats and the threats created by the dam structures that can arrest the sediments and can cause upstream floods should be of bigger concern than mere politicisation of the water issues.
Conclusion
- On the whole, the lack of trust between nations has marred the hydropolitics of the Indus. The priority should have been settling disputes amicably by drawing strength and confidence from the past and preparing for an uncertain precipitation regime of the future due to climate change. The concerns of a much-needed integrated basin governance approach for the Indus must not be overshadowed by politics of mistrust and hatred.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Global geopolitical struggle and India's foreign policy
Context
- On 1 February, a high-altitude balloon of Chinese origin was spotted over the US state of Montana, which also houses one of the country’s three active nuclear missile silos. on 4 February, US forces shot down the balloon over the country’s South Carolina coast and are now proceeding to collect some of the debris.
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Balloons for surveillance
- Balloons could prove much cheaper and loiter for extended periods, providing continuous surveillance over targets, unlike satellites based on orbital motion.
How The US responded?
- Initial assessment: The US government officially described it as a surveillance balloon with no immediate military or physical threat but was quick to go back on its initial assessment.
- Incident as a part of Chinese larger troubling pattern: An American view describes the Chinese balloon incident as part of a larger, more troubling pattern.
- China claims as it was civilian airship and unintentionally flown: Despite Chinese claims that the balloon was a harmless civilian airship that had unintentionally flown into US airspace, Secretary of State Antony Blinken cancelled his much-anticipated diplomatic visit to Beijing.
- Issue is a matter of violation of sovereignty: The US has said that the balloon issue is a matter of violation of sovereignty, and, as of 4 February, there are reports of another balloon being spotted over South America that China has admitted is also theirs.
Similar experiments
- US utilising high-altitude balloons: Not just China, the US has also experimented with utilising high-altitude balloons in space for a long time. In July 2022, NASA tested an aerial robotic balloon that would work in tandem with an orbiter to carry out scientific measurements of Venus.
- UK demonstrated in 2022: In August 2022, the UK selected an American company to demonstrate an uncrewed platform for stratospheric communications, intelligence, surveillance and reconnaissance (ISR). The need was for manoeuvrable, long-duration missions capable of locating targets anywhere on earth.
Global geopolitical struggle
- Default mode but with different players: The event if viewed from a historical perspective, the world is back to its default mode, only this time, it has a different set of actors.
- It involves various forms of power, primarily shaped by technology: Notably, there exist also nuclear weapons in the hands of nine powers, unlike during the Cold War era, when the number was confined to five.
- Economic and technological integration is much greater than ever before: Ever since Russia invaded Ukraine in 2022, attempts at desegregating economic and technological fields have not just continued but also gained momentum.
- Camps led by the US and China: Global cooperation is in short supply and is being morphed into a coalition-building exercise ensconced in primarily two camps led by the US and China.
- Benefited from lower cost supplies from China and Russia: Economically, it has maintained trade with China and benefited from lower-cost energy supplies from Russia.
- India’s tilt towards west: After China’s aggression on the northern borders, India has tilted to the West, especially in the maritime and technological arenas.
- Increasingly polarised world challenging India’s foreign policy: But as global tensions grow and confrontations increase, India could find itself under pressure to take sides even when its interests are not under contention. Therefore, there is a need to articulate a foreign policy paper on India’s alignment posture in a world that is becoming increasingly polarised.
- This policy must foster partnerships based on context and not on blocs: India could join hands with the US and its allies in seeking an open and rules-based Indo-Pacific order. It could even partner with China on climate change if there is a congruence of interests.
- Challenge is to avoid being dragged in war: In grand strategic terms, India’s challenge is to avoid being dragged into a World War that must be considered a growing possibility.
India as peacemaker
- Exploring the role of a peace broker
- What could be at the back of the Indian strategic mind is to play the role of a peace broker and explore every possibility to make it count.
- This is important because the state of relations between the US and China does not seem to have many prospects for a return to dialogue that can facilitate consensus on bilateral, multilateral and global issues.
- It is a possibility reflected in the inability of the United Nations to intervene, as the major parties involved are themselves in contention for the position of the stronger superpower.
- India may be getting into a position to make a peacebuilding attempt:
- A report by a US-based business intelligence consulting firm corroborates this asserts that India may be getting into a position to make a peacebuilding attempt
- According to this survey, Prime Minister Narendra Modi is among the world’s most popular global leaders. With a 78 per cent approval rating, Modi is far ahead of other contenders.
Conclusion
- It is high time that Indian strategists explore the feasibility of making India a peacemaker. It is a difficult and challenging task that may seem impossible. But there is no reason not to try, as the Prime Minister and the posture of the nation has both internal and external popularity on its side.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Read the attached article
Context
- More than half of the population worldwide lives in cities, making urban centres critical to socioeconomic growth and development. However, rampant urbanisation has led to unequal distribution of resources and a lopsided development approach that ignores the specific needs of women. Despite projections of two-thirds of the population living in cities by 2050, urban development remains exclusive of women’s perspectives and needs.
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Gender inequality in cities
- Primary reason: One of the primary reasons behind gender inequality in cities is that modern cities are planned mainly by men and for men, thus sidelining the needs of women.
- Designed assuming that the role of women is confined to household: The cities have been traditionally designed on the premise that a woman’s role is primarily confined to the household, barring their need to access the immediate neighbourhood.
- Patriarchal approach has taken away the Fundamental rights: This patriarchal approach, while shaping the power dynamics between men and women, has also taken away the fundamental right of women to live and thrive in a safe and inclusive outdoor environment.
- Women one of the most vulnerable groups in society: Women, one of the most vulnerable groups in society, face violence in physical and cyber mode, making it difficult for them to access opportunities that come with urbanisation.
- For instance: Due to poorly lit streets and a lack of women-friendly mobility systems, women cannot actively participate in the workforce. Only 27 percent of women participate in the workforce in India as compared to 79 percent of men.
- Male dominated nature of job opportunities available in the cities: Most of them are male-dominated, such as the platform economy jobs of delivery agents and those at vast construction sites, leaving less space for women to intervene.
- Women professionals are burdened with dual work responsibilities: Moreover, with an increase in the number of households in cities, women are devoting most of their time to home and caring work, thus, leaving less time for them to do a job. In this scenario, women professionals are burdened with dual work roles, impacting their physical and mental well-being.
- Discouraged drop outs: Furthermore, the social tendency to discourage urban women from working after marriage has generated a trend of ‘discouraged drop-outs’, leaving them out of the workforce.
- Role in urban planning and governance is abysmally low: Women’s participation in urban planning and governance has been abysmally low. Women hold only 10 percent of the highest ranks globally in architecture and urban planning offices. With women left out of city planning institutions, city planners ignore the needs of women and the challenges they face.
Do you know: The concept of a 15-minute city?
- The concept of a 15-minute city, i.e., where everything needed will be available within a walkable distance of 15 minutes, is attracting the interest of planners even in India.
- However, for stray examples such as Magarpatta, a city in Pune, the concept has failed to move beyond rhetoric.
Focus areas of development
- City society intervention is a prerequisite: The intervention of civil society and policymakers on specific parameters can help build gender-responsive cities that accommodate the concerns of all citizens.
- Building safer cities: Better street lighting, women-friendly transport systems, and behavioural change programmes that help people understand that the onus of safety is not on women but on society as a whole will surely improve women’s access to safer cities.
- For instance: Building technology systems such as the Safetipin app helps women map safe areas and take necessary actions in emergencies by collating a list of important contacts, GPS tracking and so on, thus, trying to make streets safer.
- Changing the attitude and mindset of society at large: Counselling sessions for men, sensitising them about how women feel if a certain social behaviour is practised, can trigger an eventual change in their mindset towards women’s needs.
- Building gender-inclusive jobs: Data suggests that 10 percent increase in women’s workforce participation rate can add US$ 770 million, approximately 18 percent, to India’s GDP. Teaching men to shoulder family responsibilities, making workspaces women-friendly, promoting women to leadership positions, and diversifying the availability of jobs can go a long way in improving the situation.
- Role of women in urban governance: Having women at the top can have a domino effect in society, making other women aspirational of the positions they can reach and the impact they can create.
- For example: Cities like Athena, Bogota, Nairobi, Dakar, and San Francisco that have had female leadership have witnessed greater socio-economic and sustainable development.
- Developing gender-sensitive infrastructure: Globally, one in three women do not have access to safe toilets. Building toilets for women and places to breastfeed and baby changing stations improves the turnout of women on the streets. Improving access to clean water will also improve overall health for women as globally.
Way ahead
- Need a paradigm shift in approaches to policymaking: Including more women in decision-making roles to identify shared concerns and build integrated solutions will need a paradigm shift in approaches to policymaking. This calls for a policy focus on optimum resource allocation and equitable distribution, ensuring easy, safe, and affordable access to all.
- Feminist approach in policymaking: Policymakers need to adopt a feminist approach to urban development.
- Feminist urbanism: Feminist urbanism seeks to understand and integrate the concerns of women and other gender and sexual minorities across caste, class, age differences, disabilities, etc.
- Developing cities on the lines of feminist urbanism: Creating a city on the lines of feminist urbanism refers to constructing compact and mixed-use neighbourhoods, inclusive streets focusing on pedestrian needs and building other critical urban infrastructure.
Conclusion
- Building global partnerships to aid gender mainstreaming in urban spaces can prove fruitful. India has a chance to further this cause as it assumes the G20 presidency. The Urban 20 grouping can bring urban policymakers from the -20 nations to deliberate on women’s rights and evolve gender-inclusive development processes to help cities attain the 2030 agenda for sustainable development holistically.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Budget highlights
Mains level: Budget and the rural economy
Context
- Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24. Union budgets can be understood in two ways. The first is as a standard accounting exercise of the government’s revenues and expenditures. It is this second aspect that provides insight into the government’s assessment of the challenges facing the economy and ways to overcome them.
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First aspect: standard accounting exercise of the government’s revenues and expenditures
- Projections are less reliable: Over the years, this has ceased to be a good metric with governments failing to spend what is announced in the budget. While the practice of off-budget entries is now no longer relevant, even revenue projections are much less reliable.
- Budget a comprehensive document: However, the budget continues to remain relevant as the most important and perhaps the only comprehensive economic document of the government.
Second aspect: Government’s assessment of the economic challenges and ways to overcome
- Premature to conclude: While the fog of the pandemic has disappeared and the associated supply bottlenecks have eased, it is premature to conclude that the economy has fully recovered.
- Per capita income is low: Per capita incomes in real terms in 2021-22 are still below the 2018-19 levels and the overall growth between 2016-17 and 2021-22 is at its lowest level of 3.7 per cent for any five-year period in the last four decades.
The pandemic effect:
- Economic slowdown: The fact that the economy was slowing down before the pandemic makes it clear that Covid only exacerbated the already fragile economic situation.
- Energy towards managing the pandemic: The structural factors that led to the slowdown remain, as in the last three years the government’s efforts were directed towards managing the pandemic.
- Decline in demand: The most important of these is the decline in demand, both for consumption and investment. Private consumption accounts for almost 60 per cent of the economy and this engine of growth has failed to fire.
- The distress is far more serious in rural areas: Rural wages have stagnated for almost a decade now. Farmers’ incomes have either declined or, at best, stagnated in the last five years.
- Withdrawal of expenditure: What has been done is the withdrawal of expenditure on almost every head that mattered for rural economic recovery. With spiraling inflation and even the cushion of free foodgrains having been withdrawn, rural areas are likely to face an uncertain situation.
- The budget for the agricultural sector is lower than the allocation last year: In real terms, the budget has declined by 10 per cent at a time when the agricultural sector is going through its worst crisis. The rise in input costs for both energy and fertilisers is likely to get worse with the withdrawal of the fertiliser subsidy.
- Declined allocation of cash transfer: Even the nominal cash transfer that was provided as part of the PM-Kisan has seen a decline in allocation. But then, this budget is no different from others in the last five years.
- Actual investment in agriculture is declined: Public investment in agriculture declined by 0.6 per cent per annum between 2016-17 and 2020-21, the last year for which data is available. This is a period when the agrarian economy has suffered its worst crisis of profitability.
- Declined budget for non-farm sector: The non-farm sector is now greater in terms of its contribution to the rural economy but has seen a decline in budget allocations.
- For instance: The budget for the Ministry of Rural Development is 13 per cent lower than the revised expenditure last year. The National Rural Employment Guarantee Scheme (MGNREGA) has seen its budget decline in the revised estimates for 2022-23. This is the lowest amount allocated in the last five years compared to actual expenditure on the scheme.
- Only Hosing scheme has seen an increase: The only scheme that has seen an increase in allocation is the rural housing scheme, from an actual spending of Rs 48,422 crore in 2022-23 to Rs 54,487 crore.
Supply-side interventions in demand constrained economy
- Preference for supply-side interventions: The government’s preference for supply-side interventions even when there is excess capacity in a demand-constrained economy. It is this understanding that is reflected in an almost one-third increase in allocation for investment. A bulk of this is in railways and roads a much-needed boost to the infrastructure sector.
- Private sector needs to accompany: But given the small share of public investment, it is unlikely to be sufficient unless it is accompanied by the private sector increasing its investment. Unfortunately, the private sector neither responding to rising public investment nor tax subsidies, as were given in 2019.
- Overall impact: This will have a negligible impact on employment and domestic demand given the low employment elasticity of these investments. Regardless, the increase in investments is welcome.
Conclusion
- The problem with this budget is not accounting but economic policy. This was the last full budget in which government could undertake serious steps to revive the economy. That required prioritising allocations towards reviving consumption demand, spurring private investment and protecting people from the vulnerabilities of high inflation and a slowing economy.
Mains Question
Q. Discuss the impact of pandemic on Indian economy. Highlight governments supply side interventions in demand constrained economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GAC's
Mains level: Digital governance in India
Context
- Indian digital governance recently witnessed multiple developments in its appellate mechanisms. In December 2022, Google appealed two of the most significant antitrust decisions that the Competition Commission of India (CCI), issued on the functioning of digital markets. GAC’s capacity to handle complaints needs to be increased.
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Background: The Google case of anti-competitive contracts
- In October 2022, CCI found Google anti-competitive in its Android licensing contracts and app store policies in two separate orders.
- The National Company Law Appellate Tribunal (NCLAT), an authority for company law, competition law, and insolvency law matters, will hear Google’s appeals from 15-17 February.
- Simultaneously, the Ministry of Electronics and Information Technology (MeitY) recently announced the formation of three Grievance Appellate Committees to enforce the accountability of online intermediaries.
What is the grievance appellate committee (GAC)?
- Based on IT Act: The Centre established three Grievance Appellate Committees based on the recently amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules 2021).
- Three GAC’s: The Centre has announced three different GACs led by the IT, Home Affairs, and Information and Broadcasting ministries.
- Composition: The committee is styled as a three-member council out of which one member will be a government officer (holding the post ex officio) while the other two members will be independent representatives.
- Complaint within 30 days: Users can file a complaint against the order of the grievance officer within 30 days.
- Online dispute resolution: The GAC is required to adopt an online dispute resolution mechanism which will make it more accessible to the users.
- Three pillars of regulatory framework: Regulatory frameworks stand on three pillars. These include a governing law, an empowered regulator and a fair appeals mechanism.
- An appellate mechanism is a critical part: An appellate mechanism is a critical part of this framework because it ensures an opportunity to remedy inappropriate application of governing laws. Therefore, if the framework is incapacitated, there will be an unfair application of law, which defeats the purpose of the legislation.
- Appellate bodies are essential tools for digital markets: Appellate bodies operate under a specialised mandate, which allows them to adapt their processes to the unique facets of a case. They are an essential tool for digital markets, which tend to be more complex than first meets the eye.
- For instance: Google allows Android users to bypass the Play Store and directly install apps from the internet known as sideloading. But when they do so, Google issues disclaimers about associated security risks linked to downloads from unknown sources. The CCI’s order on Android calls such disclaimers anti-competitive because they reinforce Google’s monopoly over app distribution.
Are GACs well equipped to deal with grievances?
- Not well equipped to deal with the user grievances: The recently formed Grievance Appellate Committees do not seem equipped to deal with the barrage of user grievances linked to online intermediary services.
- For instance: In October 2022, Facebook received 703 complaints, Twitter 723 and WhatsApp 701. WhatsApp then banned 2.3 million accounts. And this does not even account for all other types of online intermediation, such as e-commerce intermediaries.
- Multiple steps to arrive at a decision while the online is accessible instantly: Online content is accessible by millions instantly, and the longer unlawful content is accessible, the greater the harm to affected parties. Accordingly, a 30-day disposal period for the appeals to the GAC has been mandated. However, any dispute resolution process involves multiple steps.
- Prolonged dispute resolution: The principles of natural justice also require the originator of the disputed content to be heard. Therefore, when they’re implicated along with intermediaries and complainants, it prolongs the dispute resolution process.
- GAC’s may struggle to substantially resolve the grievances in time: The Centre has announced three different GACs led by the IT, Home Affairs, and Information and Broadcasting ministries. However, the sheer volume of online user content suggests that GACs may struggle to substantially resolve these grievances in time.
Conclusion
- Effective appeals mechanisms form an integral part of the digital governance toolkit. India has a progressive adjudicatory system that recognises the need for specialised appellate mechanisms, but its potential requires actualisation. The appellate mechanism must be strengthened for any technology policy reforms to succeed.
Mains question
Q. Briefly explain what is the grievance appellate committee (GAC)? Are GACs well equipped to deal with grievances? Discuss
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From UPSC perspective, the following things are important :
Prelims level: wealth tax
Mains level: Tax reforms and wealth tax In India
Context
- There is a good reason we do not tax wealth directly. Actually, there are many good reasons. But that’s not stopping some states from giving it a try. There are much more effective options for targeting wealthy people for tax revenue that are better for the economy. Some the US is already doing, such as state property taxes, federal capital gains taxes and estate taxes on inheritances.
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What is wealth tax?
- Wealth tax is a direct tax unlike the goods and services tax or value-added tax, can take several forms, such as property tax, inheritance or gift tax and capital gains tax.
- It aims to reduce the inequalities of wealth.
- It is based on the market value of assets owned by a taxpayer and charged on the net wealth of super rich individuals.
Why in news?
- The new bills this week by California and Washington propose taxing their richest residents 1% to 1.5% each year.
- Four other states including New York and Illinois propose taxing unrealized capital gains, or taxing wealth based on how much it grew in the last year whether or not you sold any assets.
Crafting good tax policy starts with a question: How much will it distort economic behaviour?
- Creates distortions: Many economists say that wealth taxes create the most distortions, followed by income and consumption taxes.
- Wealth taxes discourage saving and investment: A 1% or 2% wealth tax may sound small, but it’s very large compared with current tax rates. Since it’s levied each year, it’s better compared to current taxes on realized capital income. These plans drastically reduce the return on risky investment, and rewarding risk is important for economic growth.
- Unrealized capital gains, are much harder to measure: Income is relatively easy to measure. Your employer sends you money that is well documented and has an objective value. Overall wealth, especially unrealized capital gains, are much harder to measure.
- Mostly rich people hold Wealth in assets: Very rich people also tend to hold a lot of their wealth in assets that aren’t publicly traded, either in private equity, in their own businesses, fine art, gold bars or other possessions.
- Hard to implement effectively: Most jurisdictions have abandoned wealth taxes. They are very hard to implement at the federal level, let alone by states with fewer resources to collect and assess data on wealth holdings.
- Example of Switzerland: A possible model is Switzerland, where individual cantons have their own wealth tax, but the tax accounts for a trivial share of tax revenue.
- A wealth tax is a bad policy based on the economics and feasibility: Collecting it will require tremendous resources that states don’t have and it won’t produce the revenue they’re counting on.
- Abolished wealth tax: The government abolished wealth tax as announced in the budget 2015. In its place, the government decided to increase the surcharge levied on the ‘super rich’ class by 2% to 12%. (Super rich are persons with incomes of Rs.1 crore or higher and companies that earn Rs.10 crores or higher).
- Abolished to simplify tax structure and discourage tax evasion: The abolition was a move to do away with high costs of collection and also to simplify the existing tax structure thereby discouraging tax evasion.
- No wealth tax at present: India presently does not have any wealth tax i.e., a tax levied on one’s entire property in all forms. It did not impose a one-time ‘solidarity tax’ on wealth in post-covid budgets that could have generated resources for essential public investment.
Way ahead
- Promising that a few wealthy people can pick up the public tab is bad economics.
- States would be better off making their consumption taxes larger and more progressive.
- They can tax luxury goods like designer clothes, private jet travel or second homes heavily.
- Governments can better enforce our existing wealth taxes by eliminating loopholes in capital gains and estate levies.
Conclusion
- Wealth taxes will continue to be in the conversation as states and the federal government need more revenue and are reluctant to raise taxes on anyone who earns more than $400,000 a year. Many economists say that wealth taxes create the most distortions, followed by income and consumption taxes. Wealth taxes need to studied not only from the lens of fiscal challenges that the states face but also market economies and probable distortions.
Mains question
Q. What is wealth tax? Highlight the present status of Wealth tax in India. It is said that Wealth tax distorts economic behaviour. Discuss in the context of States in the US proposes taxing the rich.
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From UPSC perspective, the following things are important :
Prelims level: Hydropower projects and locations, and Micro hydro systems,
Mains level: Hydropower Projects in fragile Himalayan region and alternatives
Context
- The crisis unfolding in Joshimath for over a month has led to conversations on the relevance of hydropower in the Himalayan region. Two years ago, a glacier burst led to question marks over the Rishiganga hydroelectric project in Uttarakhand.
What is hydropower
- Hydropower generates electricity from the natural flow of water without releasing any emissions or pollutants. It also does not rely on fossil fuels. Therefore, it is often considered green energy.
Hydropower Projects in Himalayan region
- The Himalaya are a major water source for much of South Asia: Most countries in the region, including India, China, Nepal, Bhutan, and Pakistan, have built or are planning to build hydropower projects in the Himalaya.
- Hydropower one of the key renewable energy sources of India: In India, the government has identified hydropower as a key renewable energy source. Many hydropower projects are under construction or in the planning stages in the Indian Himalaya, including the Subansiri Lower Hydroelectric Project in Arunachal Pradesh and the Teesta Low Dam Hydroelectric Project in Sikkim.
- Nepal has also identified hydropower as a major source of energy: Nepal has many hydropower projects in the planning and development stages, including the Arun III Hydroelectric Project and the West Seti Hydroelectric Project.
- Main source of revenue for Bhutan: In Bhutan, hydropower is the main source of revenue, and the government has set a target to export surplus electricity to India. The country has built several hydropower projects, including the Chukha Hydropower Project and the Tala Hydropower Project.
Concerns about the potential conflicts over water resources in the region
- Fragile ecosystem of Himalaya already under stress: The Himalaya is a fragile ecosystem and home to a diverse range of flora and fauna. It is already threatened by deforestation, overgrazing, and construction activities that harm the environment and local communities that depend on it.
- Construction of dams can disrupt the characteristics of river flow: The construction of dams can disrupt the flow of rivers, leading to changes in water temperature and chemistry. It can also cause erosion, landslides, and sedimentation which can have a negative impact on the local environment.
- Construction disrupts well-being of the local population: Dams also disrupt the migration patterns of fish and other aquatic species and impact the local wildlife, particularly if the dam’s construction leads to habitat loss. Large-scale hydroelectric dams displace local communities, affecting their livelihoods and cultural heritage and impacting the overall well-being of the local population.
Micro hydro systems as an alternative to hydropower
- Micro hydro system of 100 kilowatts (kW): It is a small-scale hydroelectric power generation system that typically generates up to 100 kilowatts (kW) of electricity.
- Applications: These systems use the energy of falling water to turn a turbine, which, in turn, generates electricity. They can be used for various applications, including powering homes, businesses, and small communities.
- Less expensive and smaller environmental footprint: They are typically less expensive to build and maintain than large hydroelectric dams and have a smaller environmental footprint.
- Can be located at inaccessible areas: They can be located even in inaccessible areas where it is difficult to transmit electricity from larger power stations, and they can provide a reliable source of energy to communities that are not connected to the grid.
- Two types : Micro hydro systems can be classified into two main types i.e., run-of-river and storage systems. 1. Run-of-river systems use the natural flow of water in a stream or river to generate electricity. 2. In contrast, storage systems use a reservoir to store water and release it as needed to generate electricity.
Conclusion
- The environmental impact of hydropower can vary depending on projects and the ways in which they are implemented. Micro hydro systems can be tailored to minimize the ecosystem’s negative impact and provide sustainable energy solutions. However, it also can have some impact on the environment and local communities. A detailed assessment should be carried out to evaluate the potential impact before proceeding with the project.
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From UPSC perspective, the following things are important :
Prelims level: POCSO
Mains level: Child marriage issue and associated problems
Context
- The United Nations Sustainable Development Goals call for global action to end human rights violations by 2030. There has been tremendous development in India on that front, as seen, for example, in the decline in child marriage from 47.4 per cent in 2005 to 23.3 per cent in 2021. The year 2021 also marked a 50 per cent decline in child marriage in South Asia.
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Why in news?
- Assam Chief Minister Himanta Biswa Sarma has launched a state-wide crackdown against child marriage.
- Booking men marrying girls below 14 years of age under the Protection of Children from Sexual Offences (POCSO) Act, and those marrying girls aged 14-18 under the Prohibition of Child Marriage Act.
- The CM has also announced that the police will retrospectively book people who participated in child marriage in the last seven years.
Background: Data from Assam
- Maternal mortality rate in Assam: According to data given by the Registrar General of India in 2022, Assam has the highest maternal mortality rate in the nation, with 195 fatalities per one lakh live births in the years 2018 to 2020.
- Infant mortality rate in Assam: With 32 newborn deaths for every 1,000 live births, Assam has the third highest infant mortality rate, according to the National Family Health Survey-5.
- Government’s aim to address the issue: The Assam government has declared that its aim is to confront the high maternal mortality and infant mortality rates in the state, which it has linked to early motherhood.
What is Child Marriage?
- Child marriage refers to any formal marriage or informal union between a child under the age of 18 and an adult and another child.
- The Prohibition of Child Marriage (Amendment) Bill, 2021, fixes 21 years as the marriageable age for women.
Effect of Covid-19 Pandemic
- According to estimates by UNICEF, 10 million more girls were at risk of becoming child brides globally because of the pandemic, affecting the prosperity and growth of communities and nations for generations.
- India has been working to ensure it doesn’t lose the momentum gained in dealing with the scourge of child marriage.
How child marriage is negatively correlated to national development?
- Impact on basic rights: Child marriages deny a child his/her basic right to education, health, and the freedom to build full, thriving lives.
- Increased susceptibility to abuse and violence: There is overwhelming evidence that child marriage renders girls more susceptible to abuse, violence, and exploitation.
- Gender Inequality: Child marriage is a gendered form of violence a cause and effect of gender inequality and discrimination and is a significant challenge facing girls and their families throughout the developing world.
- Disturbed childhood: Child marriage conclusively devastates a girl’s childhood, saddling her with adult responsibilities before she is physically and mentally mature.
- Increased risk of forced pregnancy and maternal mortality: With little bodily autonomy, child brides are more likely to undergo forced pregnancy, increasing the likelihood of maternal and infant mortality.
- Negative effect on education: A girl’s education is less likely to be valued evidence is clear that girls with less education are more likely to marry young, and child marriage typically ends a girl’s education.
- Support systems declines: The lack of education and isolation from peers further shrink a child bride’s support systems. Without skills or mobility, her ability to overcome poverty for herself and her children is hindered.
- Negative impact on community and national development: These social and economic vulnerabilities that child brides live with impinge on their ability to contribute to their community’s and country’s growth and development.
- Intergenerational consequences: They are also more likely to experience intimate partner violence and have worse economic and health outcomes than their single peers, which eventually trickles down to their own offspring, placing further strain on the nation’s ability to offer quality healthcare and education.
- Though legislation prohibiting child marriage in India has been in place since 1929, the majority of child brides in the world 223 million of them, or one-third of the total live in India.
- Despite it being illegal for girls under the age of 18, and for boys under the age of 21, to marry in India under the Prohibition of Child Marriage Act, 2006, the UNFPA-UNICEF estimates indicate that at least 1.5 million underage girls get married annually here.
- Ending the practice of child marriage is crucial to address the several human rights violations that stand in the way of gender equality for girls.
Understanding the key drivers behind child marriage is necessary to combat it
- Common reasons: While the origins of the practice differ across nations and cultures, it is perpetuated by poverty, lack of educational opportunities, and limited access to healthcare.
- Financial burden: Some families choose to marry off their daughters in order to reduce their financial burden. Other reasons cited are shrinking living spaces and increasing concerns about adolescent girls’ safety.
- Mentality of securing daughter’s future: Families also act in this manner because they think it will protect their daughters’ futures. The practice is also supported by gender roles and marriage-age norms, stereotypes, and the socioeconomic risks of unmarried pregnancies.
Conclusion
- Though legal protections and their strict implementation are important, they form only one part of the solution. To end child marriages, state and non-state actors alike must put girls, across the diverse spectrum of society and marginality, at the centre of the solution. The state can penalise and criminalise the act, but society at large has the important role to play.
Mains question
Q. Highlight the key drivers behind child marriage and Discuss how child marriage is negatively correlated to national development?
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From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Government’s Budget and Healthcare
Context
- In her 2023-24 Union Budget speech, the finance minister announced that the total central government budget for health (not including research) will be roughly Rs 86,175 crore ($10 billion) that is, roughly Rs 615 for every citizen. This is a 2.7 per cent increase from the previous fiscal year and lower than the rate of inflation.
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Government’s current Health spending
- Current health spending lower than middle income countries: India currently spends about Rs 8 lakh crore ($100 billion) or about 3.2 per cent of its GDP on health. This is much lower than the average health spending share of the GDP at around 5.2 per cent of the Lower- and Middle-Income Countries (LMIC)
- Health expenditure in India compared to other countries: Of this, the government (Centre and states put together) spends about Rs 2.8 lakh crore (about $35 billion) roughly 1.1 per cent of the GDP. Contrast this with the government health expenditure in countries like China (3 per cent), Thailand (2.7 per cent), Vietnam (2.7 per cent) and Sri Lanka (1.4 per cent).
How health expenditure affects people especially poor?
- Hospitalisation cost for a day: A Day of hospitalisation at a public hospital is estimated at Rs 2,800. At a private hospital, it is Rs 6,800.
- Disproportionate financial impact on poor households: A greater proportion of disposable incomes is taken away from a poor household as compared to a non-poor one, further broadening the gap between the two.
- Impact of Health expenditure on employment and income: If sickness hits a working member of the household, she/he must often withdraw from active employment and their main source of income dries up at the time when they urgently need more money for treatment.
- Sell or mortgage of assets to cover treatment costs: Households have to often sell or mortgage their productive assets, such as land and cattle, to cover the treatment costs.
- Burden of health expenditures on vulnerable populations: The poor, elderly and sick are already at a disadvantage and the burden of health expenditure makes this even worse.
- Falling into poverty due to health expenditures: This further reduces their capacity to bounce back. According to the WHO, 55 million people fall into poverty or deeper poverty every year due to catastrophic expenditures on health.
Areas where greater spending by the government could help in the immediate term
- Focus should be balanced for both communicable and noncommunicable: The National Health Mission allocates less than 3 per cent (Rs 717 crore) to non-communicable diseases (NCDs) compared to communicable diseases and reproductive and child health services, despite NCDs causing more than half of the total burden of disease and this proportion further increases in both rural as well as urban areas.
- Public health and primary health care focus on rural areas: Urban areas have poorly developed infrastructure for primary care even if secondary and tertiary health care services are better. For example, immunisation coverage is now lower in urban India than in rural India. A third of the country now lives in urban areas and greater resources are needed to improve health here.
- Health research has been neglected for too long: The allocation for the Department of Health Research in this year’s budget is Rs 2,980 crore, flat from last year. Spending Rs 20 per Indian is inconsistent with the need for innovations and technologies in the sector. The bulk of the resources provided to the Indian Council of Medical Research goes towards maintaining a large payroll of scientists and the output is poor.
- Maximizing India’s potential: India stands on the brink of a massive opportunity. Quality education and health for the 26 million children born each year and the 65 per cent of the population under the age of 35 could help provide a workforce that would propel India forward.
- Harnessing the Demographic Dividend: India has a growing working-age population, but needs urgent action to harness the demographic dividend and potentially become a developed country within a generation.
- Adopting Competitive funding System for health research: India should adopt a competitive grant system for government-funded health research like other successful countries, to encourage top-notch research. The Wellcome Trust/DBT-India Alliance is a successful example of this system.
Conclusion
- The health (and education) of Indians is the most important determinant of what the country can achieve during the next 25 years of Amrit Kaal. We must find ways to both find more money for health, and also more health for the money to ensure that all Indians achieve their true potential.
Mains question
Q. Highlight the present status of Government’s healthcare spending. How out of pocket health expenditure affects people especially poor? Suggest what government must do and areas where it must focus in the immediate term?
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From UPSC perspective, the following things are important :
Prelims level: ChatGPT and other such AI tools
Mains level: AI, advantages, concerns and policies
Context
- With the launch of Open AI’s ChatGPT late last year, the impending changes in the nature of work, creativity and economy as a whole have moved from being the subject of futuristic jargon to an immediate challenge.
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Background
- Since at least 2015 when Klaus Schwab popularised the term Fourth Industrial Revolution at that year’s World Economic Forum terms like 4IR, Artificial Intelligence (AI), Internet of Things, Future of Work, entered the lexicon of politicians, bureaucrats, consultants and policy analysts.
Sample developments over just the last few days
- A judge in Colombia included his conversations with ChatGPT in a ruling;
- Microsoft is integrating the bot with its search engine, Bing, and other products;
- Google is reportedly trying to launch a similar tool and there are reports that ChatGPT can already code at entry level for Google engineers.
What are the Concerns?
- Lifestyle may become redundant: Concerns about plagiarism in universities and beyond, as well as the fear that many white-collar jobs may become redundant in the coming years, as AI becomes more ubiquitous and sophisticated.
- Implications on labour, education and authenticity: The AI revolution is likely to have serious implications on labour, education, authenticity of content and its authorship, and much else.
- Case of Social media’s influence in US elections: The concerns around social media’s influence on politics and society became sharp in the aftermath of the 2016 US presidential elections and accusations of voter manipulation by foreign agents. Much of the world is still struggling with the questions raised then.
- Simple definition: ChatGPT is a chatbot built on a large-scale transformer-based language model that is trained on a diverse dataset of text and is capable of generating human-like responses to prompts.
- A human like language model: It is based on GPT-3.5, a language model that uses deep learning to produce human-like text.
- It is more engaging with details: However, while the older GPT-3 model only took text prompts and tried to continue on that with its own generated text, ChatGPT is more engaging. It’s much better at generating detailed text and can even come up with poems.
- Keeps the memory of the conversations: Another unique characteristic is memory. The bot can remember earlier comments in a conversation and recount them to the user.
- Human- like resemblance: A conversation with ChatGPT is like talking to a computer, a smart one, which appears to have some semblance of human-like intelligence.
Anticipating possible futures requires engagement with the opportunities
- The Struggle to keep up with technology in policymaking:
- Governments worldwide face a challenge in creating policies that keep up with the rapid pace of technological advancement.
- Policymakers should understand that they must work to bridge the gap between technology and regulation, as a growing divide could lead to problems.
- Preparing for technological change in education and workforce:
- In addition to creating regulations that support innovation, it’s crucial to plan for the changes that new technology will bring to education and employment.
- This includes anticipating new job types and skills required, as well as updating the education system to prepare future workers.
- Importance of Preparing for technological change for India:
- India has been facing the challenge of balancing privacy and regulation in the handling of data for several years.
- Successfully adapting to technological changes is crucial for India to make the most of its large, young workforce. If not addressed in time, the consequences could be severe
Conclusion
- The transformations the new technology is bound to bring about must be met with swift adjustments in the broader national and international legal and policy architecture. The lag between technology innovation and policy that was seen with the rise of Big Data and social media can serve as a lesson.
Mains Question
Q. With the rapid innovations and launching of Artificial intelligence models everyday will change the nature of work, creativity and economy as a whole. comment
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From UPSC perspective, the following things are important :
Prelims level: Budget
Mains level: Budget, proposals for Urban planning and urban reforms, sustainable cities
Context
- Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24. It has been marked by areas of continuity over the past three years. However, we should not overlook the missed opportunities for more fundamental reforms while celebrating continuity.
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Areas of focus
- Some areas like the continued boost in capital expenditure have received wide attention. Others, such as the reform of urban development and planning processes have received less.
- As India grows, the quality of urbanisation will determine the quality of economic growth, and vice versa.
- From this perspective, the continued focus on improving urban infrastructure and land-use efficiency is welcome.
Proposals related to urban planning and urbanization
- Urban planning reforms and efficient land use: Cities will be encouraged to undertake urban planning reforms, adopting practices that use land more efficiently, creating resources for urban infrastructure, making urban land affordable, and improving inclusivity.
- Infrastructure financing: Cities will be incentivized to ring-fence user charges on infrastructure and undertake property tax governance reforms so that they are creditworthy enough to issue municipal bonds.
- Infrastructure Development fund for Tier 2 and 3 cities: A fund will be created by using shortfalls in priority sector lending to create infrastructure in Tier 2 and Tier 3 cities. Rs 10,000 crore is the expected amount to be made available for this fund. States will be expected to adopt user charges to access these resources.
- Improving sewage and waste management: Proposals on improvements in infrastructure for handling sewage and managing waste.
- The 2021-22 budget focused on providing urban infrastructure public transport, waste management and universal water supply.
- In 2020-21, the budget, like this year, proposed improvements in sewage treatment and waste management to do away with manual cleaning.
- It proposed tax concessions to encourage overseas borrowing for specified municipal bonds. In 2019, the government announced, and then formulated a model tenancy law to promote rental housing.
What more can be done?
- Shift towards market-oriented reforms in urban planning and development:
- States and city administrators have themselves come around to the benefits of market-oriented reforms, obviating some of the necessity for the Centre to champion them. This could be driven by the emergence of cities as engines of growth, the resultant commodification of urban land markets and, therefore, the increasing focus on land-use efficiency.
- Greater openness to new ideas of urban planning could also be driven intellectually by changes in the outlooks of professionals in the field urban planners, architects and administrators who are increasingly able to work directly with state and municipal governments.
- Lack of Political Significance for Urban Governance Reforms:
- It could be that while cities are increasingly economically significant, they are not yet significant enough politically for politicians to look at urban governance issues more seriously.
- While the 73rd and 74th amendments to the Constitution devolved many powers to local governments, state governments continue to hold most of the aces. This could change rapidly in the future as India transitions from rural to urban.
Conclusion
- While urban governance systems are improving, India’s cities are still plagued by issues that need fundamental changes. Our building by-laws, restrictions on land use and zoning still create inefficiencies and make our cities unaffordable, dirty and polluted. The government’s steps to increase capacity building and to create expert committees to propose reforms in these areas is commendable. However, the pace of these proposals is inadequate and need to prioritised to meet urban India’s challenges.
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From UPSC perspective, the following things are important :
Prelims level: Menstruation a biological process
Mains level: Menstrual leave policy debate
Context
- Menstrual leave is a workplace policy that allows female employees to take time off from work during their menstrual cycle due to physical discomfort or pain. This policy has been a topic of debate, with some arguing that it is necessary to accommodate the needs of women during their period, while others argue that it creates discrimination and reinforces gender stereotypes.
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Background
- Recently, Kerala government announced that the state government will grant menstrual leave for female students in all state universities under the Department of Higher Education.
- The declaration occurred shortly after the Cochin University of Science and Technology (CUSAT) announced the decision, in response to a request by the students’ union, to grant menstruation leave to all of its female students.
Menstrual leave and the debate
- Widespread conversation in recent years: The adoption of voluntary menstrual leave policies by some companies in recent years has led to a widespread conversation on periods in India.
- Termed as Special leave for women: When the Bihar government implemented a period leave policy in 1992, it was termed special leave for women due to the stigma attached to the word menstruation.
- Normalising conversation: The recent initiative by employers to provide period leave has been discussed and debated in the public sphere, thereby normalising the conversation around menstruation to an extent.
Who are menstruators?
- Menstruators is an inclusive term refers to individuals who have female reproductive anatomy and experience menstrual periods.
- It includes, women, trans men, and non-binary persons as well.
- This biological process also decouples menstruation from womanhood.
Arguments in favour
- Biological process comes with physical pain: Though menstruation is a biological process, it is accompanied by cramps, nausea, back and muscle pains, headaches, etc.
- Polycystic ovary syndrome (PCOS): Additionally, these can take a debilitating form amongst menstruating people who suffer from polycystic ovary syndrome (PCOS) and endometriosis.
- For instance: In India, 20 per cent of menstruators have PCOS and approximately 25 million suffer from endometriosis. The intensity of pain can vary for individuals for a variety of reasons.
- Acknowledges the reality: For many menstruators, it is a biological process intertwined with medical symptoms. Mandatory period leave is an affirmative action policy that acknowledges this reality.
- Kerala governments announcement is a welcome step: The Kerala government’s announcement to grant menstrual leave to all female students of state universities is a welcome move that takes the discourse a step further into educational institutions.
- It should be replicated across universities and schools in India: This will also help reduce the drop-out rates of female students from government schools in rural India caused by the lack of clean toilets, running water, sanitary pads, etc.
Arguments against
- Fear of bias in hiring: The major opposition to a menstrual leave policy is the fear of bias in hiring due to the financial costs to employers. Discriminatory hiring has been a cause of concern in many countries.
- Probable decline in women labour force participation: It is often equated to the decline in the labour force participation of women following the introduction of mandatory paid maternity leave.
- Medicalising normal biological process: Period leave is often seen as medicalising a normal biological process.
Did you know?
“Female sugarcane cutters surgically remove their uteri to secure work”
- A widely accepted menstrual health framework can also ameliorate the conditions of female workers in the unorganised sector.
- In Maharashtra’s Beed district, contractors in the sugarcane industry do not hire anyone who menstruates.
- More than 10,000 female sugarcane cutters have had to surgically remove their uteri to secure work.
- Most of them are in their twenties and thirties, and now experience various post-surgery health complications. Such exploitation is a human rights violation.
Way ahead
- Need to bridge the gaps: The path to equality does not lie in inaction due to fear of further discrimination. What is needed is a holistic outlook aimed at bridging existing gaps.
- Comprehensive and inclusive approach is must: The implementation of menstrual leave should be based on a comprehensive and inclusive approach that takes into account the needs and rights of all employees, regardless of gender.
- Mandatory self-care leaves as an alternative: Employers should be made to introduce a mandatory self-care leave as an alternative to period leaves for those who cannot avail of the latter. Employees should be able to utilise their self-care leave as they deem fit. This will reduce burnout and increase productivity.
- Self-care leave will also destigmatise menstruation: The names menstrual leave and self-care leave will also destigmatise menstruation and self-care respectively. Further, employers should be made to implement a stringent diversity, equity, and inclusion (DEI) framework.
- Safeguards menstruators in unorganized sector: A formal menstrual leave policy in the organized sector can act as a catalyst in safeguarding menstruators in the unorganized sector too.
Conclusion
- Menstrual health is a public health issue. Considering the sizable population of menstruators in India who face stigma, period leave cannot be dismissed anymore as a foreign concept. It is a pivotal step in ensuring proper reproductive health equity in India.
Mains question.
Q. The topic of Menstrual leave is in the headlines for some time now. Anaalyse the dabate
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: iCET
Mains level: India-US bilateral relations and High technology cooperation
Context
- The talks between India’s National Security Advisor Ajit Doval and his American counterpart Jake Sullivan in Washington this week have concluded with the announcement of a new road map for deeper military and techno-economic cooperation between the two countries that is iCET.
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Background: Idea first mooted in QUAD summit
- The idea was first mooted in the meeting between Prime Minister Narendra Modi and President Joe Biden on the margins of the Tokyo summit of the Quadrilateral Security Dialogue (Quad) last May.
- Early advances in India’s nuclear and space programs: High technology cooperation has long been a major focus of US-India relations. Early advances in India’s nuclear and space programmes in the 1950s and 1960s involved significant inputs from the US.
- US nuclear sanctions and reduced cooperation: But the US nuclear sanctions from the 1970s steadily whittled down the extent of bilateral high-tech cooperation.
- Civil nuclear initiative renewed cooperation: The historic civil nuclear initiative of 2005 opened the door for renewed technological cooperation.
- Political ambivalence bureaucratic inertia prevented best use: But residual restrictions on technology transfer in Washington and Delhi’s political ambivalence and bureaucratic inertia prevented the best use of the new possibilities.
- The iCET process and new possibilities ahead: The iCET process, which will be monitored and driven from the PMO in Delhi and the White House in Washington, will hopefully bring greater coherence to this round of India-US technological engagement.
What is Initiative on Critical and Emerging Technologies (iCET)?
- Cooperation in emerging technology: The iCET is a partnership between India and the US to work together in developing important and new technologies.
- Areas of collaboration for instance: The iCET involves collaboration in a range of areas including quantum computing, semiconductors, 5G and 6G wireless infrastructure, and civilian space projects such as lunar exploration.
- Adding depth and breadth to already growing partnership: The iCET’s goal is to increase the technology interaction between the US and India while also potentially adding additional strategic depth and breadth to their growing partnership.
- Directly monitored by PMO and White house: The Prime Minister’s Office in Delhi and the White House in Washington will oversee and direct the iCET.
Significance of iCET for India
- The importance of iCET in the context of assertive China: Lending urgency to the iCET is the growing convergence of Indian and US interests in managing the security, economic, and technological challenges presented by a rising and assertive China.
- India’s alternative for dependence on Russian military technology: India is also looking to reduce its over dependence on Russian weapons and military technology and to produce more weapons at home in partnership with western countries.
- Boost to India’s technological capabilities: The iCET would provide India with access to cutting-edge technology and expertise in areas that are critical and emerging in nature.
- Economic growth: Working together on new and important technologies can lead to more business between India and the US, which can help the economy grow as it will bring more investment and employment opportunities.
Other focus area: Cooperation in defence production
- The two sides are also focused on cooperation in defence production.
- While much of this cooperation will need to be fleshed out in the months ahead, Doval and Sullivan announced one concrete measure the making of a fighter jet engine in India.
- GE Aerospace has applied for an export licence for jet engine production and phased transfer of technology to Indian entities. Washington promises to process this application expeditiously. This fits in nicely with Delhi’s plans to modernise its rusty defence industrial base.
Conclusion
- If implemented with speed and purpose, the bilateral Initiative on Critical and Emerging Technologies (iCET) could lend a new strategic depth and breadth to the expanding engagement between India and the United States.
Mains question
Q. What is Initiative on Critical and Emerging Technologies (iCET)? Discuss the Importance of iCET especially for India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Highlights of Budget 2023 - Schemes and projects for Digitization and Green growth
Context
- The Union Budget speech by Finance Minister Nirmala Sitharaman on Wednesday highlighted the government’s continuous efforts to push for digitisation in the country. Also the Finance Minister listed ‘Green Growth’ as one of the seven priorities of her Budget.
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Push for digitisation in the country: key highlights
- Digital Public Infrastructure for Agriculture: It will be an open source, open standard and interoperable public good. The platform will offer inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for the growth of the agri-tech industry and start-ups.
- National Digital Library for Children and Adolescents: This will be established for facilitating the availability of quality books in different languages, genres and at different levels. The government will also try to inculcate a culture of reading by collaborating with NGOs, which will provide age-appropriate reading material to everyone.
- Centres of Excellence for Artificial Intelligence: There is a proposal for setting up three centres of excellence for Artificial Intelligence in top educational institutions. These centres, in partnership with leading players in the industry, will conduct interdisciplinary research and develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities.
- National Data Governance Policy: Government will formulate a data governance policy to enable access to anonymised data for innovation and research by start-ups and academia.
- 5G Services: A hundred labs will be established in engineering institutions for developing applications using 5G services to realise a new range of opportunities, business models, and employment potential.
- E-Courts: Government will roll out phase three of the E-Courts project to ensure the efficient administration of justice.
- Bharat Shared Repository of Inscriptions (Bharat SHRI): A digital epigraphy museum will be established and one lakh ancient inscriptions will be digitised in the first stage.
- Skill India Digital Platform: The digital ecosystem for skilling will be further expanded by launching a unified Skill India Digital platform for enabling demand-based formal skilling, linking with employers including MSMEs and facilitating access to entrepreneurship schemes.
- Green Hydrogen Mission: The recently launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crores, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. India aims to reach a target of an annual production of 5 MMT of green hydrogen by 2030.
- Energy Transition: The Budget has provided Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
- Energy Storage Projects: To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.
- Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed.
- Green Credit Programme: For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.
- PM-PRANAM: A new PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
- GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme: 500 new waste to wealth plants under GOBARdhan scheme will be established for promoting circular economy.
- Bhartiya Prakritik Kheti Bio-Input Resource Centres: Proposal to facilitate over the next three years 1 crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
- MISHTI: Mangrove Initiative for Shoreline Habitats & Tangible Incomes, MISHTI, will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.
- Amrit Dharohar: The government will promote their unique conservation values through Amrit Dharohar, a scheme that will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.
- Coastal Shipping: Coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
- Vehicle Replacement: Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy states will also be supported in replacing old vehicles and ambulances.
Conclusion
- The Union Budget presented by Finance Minister Nirmala Sitharaman outlines the government’s push for digitization and green growth in India. Key highlights suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India.
Mains question
Q. Recently Finance Minister Nirmala Sitharaman presented Union Budget 2023. many suggests that the budget lays the foundation for a more digitally connected and environmentally sustainable India. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Particulars of MSME sector reforms
Mains level: MSME significance and challenges
Context
- India overtook the UK as the world’s fifth-largest economy in 2022, and is on track to achieving PM Narendra Modi’s vision of a $5 trillion economy by 2026-27. Despite concerns of a looming global recession, supply disruptions and the Russia-Ukraine war, India has stood out as a bright spot, growing faster than most major emerging markets. The government’s budget for 2023 presents an opportunity to make the Indian MSMEs competitive and self-reliant.
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What are MSMEs? How are they defined?
- Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on:
- The investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of and
- The investment in equipment for enterprises engaged in providing or rendering of services.
MSMEs in India at present
- The 6.3 crore micro, small and medium enterprises which account for 30 per cent of GDP and employ nearly 11 crore people have demonstrated this spirit of resilience.
- With sales in several industries across the MSME sector reaching 90 per cent of pre-pandemic levels, India’s small businesses are scripting a turnaround.
- Streamlining input tax credit for e-commerce suppliers: Currently, suppliers selling on e-commerce platforms need to procure input services like logistics, which are taxed at 18 per cent. This leads to precious working capital getting blocked without any visibility of future realisation, potentially discouraging suppliers from adopting e-marketplaces.
- Adequate working capital for small businesses: From meeting fixed expenses such as electricity, rent and employee wages to investing in future growth, adequate working capital is a must for small businesses.
- Lowering GST rates on input services: By lowering GST rates on input services availed by online sellers, the government will not only shore up their finances but also give a leg-up to their digitisation journey. Further, refunds of accumulated input tax credit will improve their cash flow situation.
- Expedited GST relaxation for small online businesses: There is also a need to expedite GST relaxation for small online businesses. In a landmark move last year, the GST Council announced a relaxation of rules for small businesses looking to go online.
- GST relaxation measures for small online vendors: Among other measures, mandatory GST registration was waived for small online vendors with a turnover of less than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
- Unlocking the potential of MSMEs through Digitization: With just 10 per cent of our MSMEs currently online, expeditious implementation of these new norms is key to unlocking their full potential. Millions of small businesses are waiting in the wings, hoping to reap the benefits of digitisation such as a much bigger addressable market, increased efficiencies and easier access to capital.
- The National Logistics Policy (NLP) can also be leveraged to make MSMEs competitive: The NLP aims to bring down logistics costs as a percentage of the GDP from 13-14 per cent to 8 per cent, on par with developed nations. While lower costs will encourage more MSMEs to use tech-powered logistics services, they will need support to tap rising e-commerce demand from smaller towns and semi-rural areas.
- Indian post and railways can be utilized for cost effective last mile delivery: The government could rope in India Post as a tech-enabled last-mile delivery partner that can facilitate cash-on-delivery transactions at competitive prices. Similarly, the unparalleled reach of Indian Railways can be synergised to ship wares to the remotest parts of the country quickly and cost-effectively.
Why the MSME sector is important especially for India?
- Employment: The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
- Help building inclusive and sustainable society: It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.
- For example: Khadi and Village industries require low per capita investment and employs a large number of women in rural areas.
- Contribution to GDP: With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.
- Exports: It contributes around 45% of the overall exports from India.
Conclusion
- With a visionary government charting out the nation’s growth path, it is anticipated that the budget would certainly deliver on the challenges for MSMEs and take us closer to the dream of an Atmanirbhar Bharat.
Mains question
Q. Highlight the significance of MSME’s for India. What more efforts can be taken to make MSMEs more competitive and self-reliant?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Drug infiltration for terror financing, and security issues
Context
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to peddling drugs to degenerate the youth of Jammu and Kashmir. Narcotics, Pakistan’s new weapon to finance terrorism within the Valley, has been dubbed the biggest challenge confronting Jammu and Kashmir by Police Chief Dilbag Singh.
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Background: Pakistan-sponsored terrorism and its impact
- The culture of violence implemented through constant financial and strategic support to the insurgency in the Kashmir Valley by Pakistan by training and infiltrating weapons and militants impacted society in many ways.
- Pakistan-backed terrorism destroyed the centuries-old socioeconomic and sociocultural fabric of society.
- The deaths, mass exodus of Pandits, and increased unemployment eroded the composite way of life and increased boredom, depression, and anxiety among the masses.
How Pakistan’s designs are failing?
- Pakistan-sponsored terrorism is at an all-time low in Jammu and Kashmir, three years after the abrogation of Articles 370 and 35A.
- The number of active militants has fallen from 250 by the end of 2019 to just over 100 by January 2023.
- Security agencies have tried hard to achieve zero terror activities within the Union territory of Jammu and Kashmir and busted 146 terror modules created by Pakistan in 2022.
- As a result, Pakistan’s design to create a culture of violence in the Valley endorsed by self-serving and incestuous political elite under the guise of autonomy for the last 30 years is failing.
Drug strategy of Pakistan in Kashmir
- Strategy serves dual purpose for Pakistan: Now, with the people of Kashmir increasingly relinquishing terrorism and a culture of violence, the drug strategy serves dual purposes for Islamabad. One, to attack the core of the social well-being, and two, to finance terrorism within the Valley.
- Constant infiltration of drugs in the valley: There is a constant infiltration of drugs by Pakistan via the Valley’s Kupwara and Baramulla districts, less-used other drugs such as brown sugar, cocaine, and marijuana are also readily available within the Valley and even in parts of Jammu.
Drug addiction in Kashmir
- Valley is slowly becoming a drug hub: The Kashmir Valley is slowly becoming a drug hub in Northern India, having more than 67,000 drug abusers, of which 90 percent are heroin addicts, using more than 33,000 syringes daily.
- Emerged as country’s top drug affected region: With 2.5 percent of the population using drugs, Kashmir has emerged as the country’s top-drug-affected region, ahead of Punjab, where 1.2 percent of the population is reportedly addicted to drug abuse.
- Residents affected: In November 2022, the state-level narcotic coordination committee meeting chaired by the Chief Sectary revealed that at least six lakh residents were affected by drug-related issues in Jammu and Kashmir.
- Increasing crime rate: Increasing on average, INR 88,000 are spent by a drug abuser in the Valley yearly, increasing Kashmir’s crime rate.
Reasons for this situation
- Collapse of age-old social discipline: A significant reason for such an alarming situation is the near-total collapse of the Valley’s age-old informal social discipline and control mechanisms enforced by village elders.
- Attack on cultural core: Pakistan’s nefarious attack on the Valley’s cultural core has rendered this traditional mechanism of social control ineffective.
- Few contributes in social degradation: The village elders have also often worked hand-in-glove with Pakistan’s evil designs by remaining silent and endorsing the societal degradation.
Jammu and Kashmir police and war against drugs
- Security agencies have trained their focus on drug peddlers: Security agencies in Jammu and Kashmir are known for anti-terror operations. They have successfully created a synergy with the local administration to sabotage Pakistan’s activities and allied forces within the Valley. With Pakistan-sponsored insurgency receding, the security agencies have trained their focus on drug peddlers.
- Security agencies in action: In 2022, under Narcotic Drugs Psychotropic Substances (NDPS) Act, the police registered 1,021 cases and arrested 1700 drug peddlers, including 138 notorious peddlers. During the same time, the security agencies seized enormous quantities of contraband, including 212 kilograms of charas, 56 kilograms of heroin, 13 kilograms of brown sugar, 4.355 tonnes of poppy straw and 1.567 tonnes of fukki.
- Busted narco terror modules: The security agencies also busted many narco-terror modules and arrested 36 persons with huge catches of drugs, arms, ammunition, and money.
- Investigation revealed drugs smuggled from Pakistan: In December 2022, police busted a Pakistan-based narcotics module and arrested 17 persons, including five police officials and some political activists. Investigations revealed that over five kilograms of narcotics valued at INR 5 crore were smuggled from Pakistan in three months.
- Launched Nasha-Mukt Bharat Abhiyan: The local administration has also launched the Nasha-Mukt Bharat Abhiyan an initiative started by the Ministry of Social Justice and Empowerment on 15 August 2020 to eradicate the menace of drug addiction in 272 districts across India. This programme has conducted large-scale awareness programmes in colleges, universities, and within communities.
- The Kashmiri society needs to have an internal interlocution and take a serious look at Pakistan’s policies to foment trouble, especially through narco-terrorism.
- Kashmir’s elders and religious leaders through mosques need to get involved in the war against drugs and guide the youth to engage meaningfully with the spate of developmental activities undertaken by the national and Union territory government following the abrogation of Article 370.
- The government should also initiate and enable public-private partnerships, where local police, military, paramilitary, and citizen bodies act in harmony to make Kashmir free of narco-terror and Pakistan-implemented culture of violence.
Conclusion
- With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Creating a working synergy between Kashmir’s traditional and formal social control system can go a long way in addressing the drug menace.
Mains question
Q. With arms and terror infiltration becoming difficult, Pakistan has now resorted to drug trafficking to destroy Kashmir’s youth. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Current status of global economy and Global recession implications
Context
- There have recently been growing concerns about the global economy slipping into recession. These concerns were primarily triggered by the contraction of the US economy, observed in the first half of 2022. Negative growth in two consecutive quarters is commonly but not officially used as an indication of recession.
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Background: Status of the US economy
- First and second quarter of 2022: As reported by the Bureau of Economic Analysis (BEA), the US real Gross Domestic Product (GDP adjusted for inflation) decreased at an annual rate of 1.6 per cent and 0.6 per cent in the first and second quarters of 2022, respectively.
- Third quarter: In the third quarter, however, the US economy grew by 3.2 per cent, signalling a significant recovery.
- Fourth quarter: The latest BEA advance estimates show that the US real GDP increased at an annual rate of 2.9 per cent in the fourth quarter.
- Expansion of US economy a positive sign: Despite the slight decrease from the third quarter, the continued expansion of the US economy at the end of 2022 marks a positive sign, soothing concerns about a recession in 2023.
Economic recovery of the US economy
- Positive growth in fourth quarter: The positive growth in the fourth quarter can primarily be attributed to consumer spending, which increased by an annualised rate of 2.1 per cent, and private inventory investment that showed an upturn in 2022. Although a significant decline from the 5.9 per cent increase in 2021, the difference accounts for the enthused post-Covid economic recovery in 2021.
- The US labour market continues to remain robust: The unemployment rate was recorded at a low of 3.5 per cent in December 2022, matching the pre-pandemic levels. Also, the total non-farm payroll employment increased by 2,23,000 in December, exceeding the Dow Jones estimate of 2,00,000.
- Inflation has eased: While the labour market remains tight, US inflation has eased in the last few months. Consumer prices fell 0.1 per cent in December the largest month-over-month decrease since April 2020, due to reductions in motor vehicle and gasoline prices.
- Layoffs not yet translated into rise in jobless claims: Although not a perfect association, the decline in jobless claims in January shows that the mass layoffs in recent weeks, particularly in the tech sector, have not yet translated into a rise in claims, suggesting the possibility of finding new jobs.
- The reopening of China’s borders can have positive implications for the global economy: As China resumes its economic activities to pre-Covid levels by boosting growth, domestic consumption is expected to increase significantly. With the ease of trans-border movement and eventual increase in exports of consumer and industrial goods, global trade is expected to strengthen as well.
What is Recession?
- A recession is a significant decline in economic activity that lasts for months or even years.
- Experts declare a recession when a nation’s economy experiences negative GDP, rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
- Recessions are considered an unavoidable part of the business cycle or the regular cadence of expansion and contraction that occurs in a nation’s economy.
- Elevated inflation continues to be a cause for global concern: Despite the fall in consumer prices, the headline CPI for the US showed an annual increase of 6.5 per cent in December 2022. In spite of the slow-paced increase in headline CPI, persistent elevation in core inflation excluding food and energy continues to be a major issue across economies.
- Interest Rate Hikes on the Horizon: Consequently, the central banks are expected to continue with interest rate hikes in the coming months. On an annualised level, the CPI inflation in Australia also jumped to 7.8 per cent in the 2022 fourth quarter, increasing the likelihood of respective interest rate hikes as well.
- China’s Impact on Commodity Prices: Moreover, an increase in China’s demand for goods post-reopening could drive up commodity prices, thereby creating an inflationary impact. For instance, China’s increased demand for natural gas would mean more competition with the European market, leading to higher commodity prices that can put further inflationary pressures on Europeans already dealing with high energy bills.
- Higher borrowing costs: Rising interest rates would incur even higher borrowing costs that could dampen consumer spending. While sectors sensitive to high borrowing costs such as housing and construction have slowed down significantly.
Conclusion
- Among the positive signs are the continued expansion of the US economy and the reopening of China’s borders. Rising inflation remains a cause for global concern. However, prevalence of mixed signals suggests that the onset and depth of a global recession in 2023 are not certain.
Mains question
Q. Highlight the current situation of global economies. Discuss if there’s a global recession in 2023?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Mental health problems and solutions
Context
- Suicides rates in India are amongst the highest when compared to other countries at the same socio-economic level. According to WHO, India’s suicide rate in 2019, at 12.9/1,00,000, was higher than the regional average of 10.2 and the global average of 9.0. Suicide has become the leading cause of death among those aged 15–29 in India.
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Background: Mental Health
- While every precious life lost through suicide is one too many, it represents only the tip of the mental health iceberg in the country, particularly among young adults. Women tend to suffer more.
- Across the world, the prevalence of some mental health disorders is consistently higher among women as compared to men.
Prevalence of Mental ill-health
- The pandemic has further exacerbated the problem: Globally, it might have increased the prevalence of depression by 28 per cent and anxiety by 26 per cent in just one year between 2020 and 2021, according to a study published in Lancet.
- Increased among younger age groups: Again, the large increases have been noted among younger age groups, stemming from uncertainty and fear about the virus, financial and job losses, grief, increased childcare burdens, in addition to school closures and social isolation.
- Use of social media exacerbating the stress: Increased use of certain kinds of social media is also exacerbating stress for young people. Social media detracts from face-to-face relationships, which are healthier, and reduces investment in meaningful activities. More importantly, it erodes self-esteem through unfavourable social comparison.
Socio-economic implications of Mental ill-health
- People living in poverty are at greater risks: Mental ill health is a leading cause of disability globally and is closely linked to poverty in a vicious cycle of disadvantage. People living in poverty are at greater risk of experiencing such conditions.
- People experiencing mental health problems likely to fall in poverty: On the other hand, people experiencing severe mental health conditions are more likely to fall into poverty through loss of employment and increased health expenditure.
- Stigma and discrimination: Stigma and discrimination often further undermine their social support structures. This reinforces the vicious cycle of poverty and mental ill-health.
- Higher income inequality has high prevalence of ill mental ill health: Not surprisingly, countries with greater income inequalities and social polarization have been found to have a higher prevalence.
- Killing the deep stigma surrounding mental health issues: The first step should be killing the deep stigma which prevents patients from seeking timely treatment and makes them feel shameful, isolated and weak. Stigma festers in the dark and scatters in the light. We need a mission to cut through this darkness and shine a light.
- Making Mental health an integral part of public health programme: There is need to make mental health an integral part of the public health programme to reduce stress, promote a healthy lifestyle, screen and identify high-risk groups and strengthen interventions like counselling services. Special emphasis will need to be given to schools.
- Paying attention to highly vulnerable: In addition, we should pay special attention to groups that are highly vulnerable because of the issues such as victims of domestic or sexual violence, unemployed youth, marginal farmers, armed forces personnel and personnel working under difficult conditions.
- Creating a strong infrastructure for mental health care and treatment: Lack of effective treatment and stigma feed into each other. Currently, only 20-30 per cent of people with such disorders receive adequate treatment.
- Mental health services should be made affordable for all: Improved coverage without corresponding financial protection will lead to inequitable service uptake and outcomes. All government health assurance schemes, including Ayushman Bharat, should cover the widest possible range.
Why is the wide treatment gap?
- One major reason for a wide treatment gap is the problem of inadequate resources.
- Less than two per cent of the government health budget, which itself is the lowest among all G20 countries, is devoted to mental health issues.
- There is a severe shortage of professionals, with the number of psychiatrists in the country being less than those in New York City, according to one estimate.
- Substantial investments will be needed to address the gaps in the health infrastructure and human resources.
- Currently, most private health insurance covers only a restricted number of mental health conditions. Similarly, the list of essential medicines includes only a limited number of WHO-prescribed medications.
Conclusion
- We need an urgent and well-resourced whole of society approach to protecting, promoting and caring for the mental health of our people, like we did for the Covid pandemic. Brock Chisholm, the first Director General of WHO, famously said, “there is no health without mental health”.
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