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Type: Prelims Only

  • Historical and Archaeological Findings in News

    Ponniyin Selvan and the Cholas

    Prelims Only | History | Mains Paper 1: Arts & Culture

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Ponniyin Selvan

    Mains level: Not Much

    In all the buzz around the Tamil film Ponniyin Selvan: 1 or PS1, a fictional period drama, a point of focus has been the Chola dynasty that the film is based on.

    Why in news?

    • A notable actor has spoke about the progressiveness of the Chola era.
    • He mentioned the architectural marvels and temples, the social setup of the time, and how cities were named after women.

    Behind the name- PS1

    • The fictional account of the Chola kingdom appeared in a weekly journal in the early 1950s and garnered popularity.
    • These were later compiled into a novel called ‘Ponniyin Selvan’, which became the inspiration for the movie, whose second part is due for release in 2023.

    Who were the Cholas?

    • The Chola kingdom stretched across present-day Tamil Nadu, Kerala, and parts of Andhra Pradesh and Karnataka around 9th to 12th century AD.
    • The dynasty was founded by the king Vijaylaya, described as a “feudatory” of the Pallavas.
    • Despite being a relatively minor player in the region among giants, Vijaylaya laid the foundation for a dynasty that would rule a major part of southern India.

    Might of the Cholas

    (1) Defense

    • One of the biggest achievements of the Chola dynasty was its naval power, allowing them to go as far as Malaysia and the Sumatra islands of Indonesia in their conquests.
    • The domination was such that the Bay of Bengal was converted into a “Chola lake” for some time.

    (2) Economy

    • While the extent of this domination is disputed, the Cholas had strong ties with merchant groups and this allowed them to undertake impressive naval expeditions.
    • In general, even merchant guilds, which had close ties to the court, had to hire their own guards because roads could be dangerous.

    (3) Culture

    • Another feature is how the practice of building grand temples, common to the dynasties of the region around this time, was ramped up in an unprecedented way by the Cholas, according to Kanisetti.
    • The grand Brihadeeswara temple of Thanjavur, built by the Cholas, was the largest building in India in that period.
    • Additionally, artworks and sculptures were commissioned by Chola kings and queens, including the famous bronze Nataraja idols.

    Women under the Cholas

    • The role of women in the royal family is being brought to focus given their impact on public life.
    • But that is not to suggest that ordinary women wielded equal power as men.
    • The royal women’s proximity to male power was valued, rather than women in general.

    Local annexations

    • When the Chola King Rajadhiraja came to power in 1044, he was able to “subdue” Pandyan and Kerala kings, and presumably to celebrate these victories performed the Ashvamedha sacrifice.
    • The Chola rulers sacked and plundered Chalukyan cities including Kalyani and massacred the people, including Brahmans and children.
    • They destroyed Anuradhapura, the ancient capital of the rulers of Sri Lanka.

     

     

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

    Ayushman Bharat scheme

    Prelims Only | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Ayushman Bharat

    Mains level: Success of India's health policies

    ayushman bharat

    India has completed four years of Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB-PMJAY), the world’s largest public health insurance programme.

    What is Ayushman Bharat?

    • Ayushman Bharat is National Health Protection Scheme, which will cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization.
    • It was launched in September 2018 by the Ministry of Health and Family Welfare.
    • It is a centrally sponsored scheme and is jointly funded by both the union government and the states.
    • It has subsumed the on-going centrally sponsored schemes – Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).

    Features of the scheme

    • It will have a defined benefit cover of Rs. 5 lakh per family per year.
    • Benefits of the scheme are portable across the country and a beneficiary covered under the scheme will be allowed to take cashless benefits from any public/private empanelled hospitals across the country.
    • It will be an entitlement based scheme with entitlement decided on the basis of deprivation criteria in the SECC database.
    • The beneficiaries can avail benefits in both public and empanelled private facilities.
    • To control costs, the payments for treatment will be done on package rate (to be defined by the Government in advance) basis.

    India’s health expenditure post Ayushman Bharat

    Ans. India’s public healthcare spending is still among the lowest in the world.

    • Total health expenditure declined to 3.2% of GDP in 2018-19 from 3.3% in 2017-18, while the government’s health expenditure (centre and state) as a percentage of GDP fell from 1.35% to 1.28% in the same period.
    • National health estimates showed the Centre’s share decreasing to 34.3% in 2018-19 from 40.8% in the previous year, while that of states rose from 59.2% to 65.7%.
    • Out-of-pocket spending as a percentage of total health expenditure declined to 48.2% in 2018-19, though it is significantly higher than the world average of 18.1% in 2019

    What about health insurance penetration?

    Ans. Retail health insurance covers a meagre 3.2% of the country’s population.

    • With a population of 1.36 billion, India is the world’s second most populous country, and is expected to surpass China soon.
    • Launched in 2018 to provide universal health coverage, AB-PMJAY, takes care of the bottom 50% of the population of approximately 700 million individuals.
    • The top 20% of the population is covered through social and private health insurance.
    • Therefore, about 30% of the population, or about 400 million, is “the missing middle”— they don’t have any financial protection for health emergencies.

    Why is sound healthcare important for the economy?

    • Covid-19 exposed the economic consequences of poor healthcare. Higher out-of-pocket healthcare spending hits savings and consumption.
    • In the work space, poor health impacts physical and mental abilities, increase turnover and lead to lower productivity.
    • Data shows that 7% of India’s population is pushed into poverty every year due to healthcare costs.

    Way forward

    • Healthcare management and disease prevention should be the focus, along with an all-encompassing healthcare system, including OPD.
    • The government also needs to pay attention on healthcare cover for “the missing middle” population.
    • As a pilot, states may allow the authority already implementing the AB-PMJAY scheme in the state to cover the missing middle.

     

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  • Nobel and other Prizes

    Medicine Nobel for Work on Human Evolution

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Nobel Prize, Neanderthal, Hominins, Denisovians

    Mains level: Not Much

    Swedish scientist Svante Paabo won the Nobel Prize in medicine for his discoveries on human evolution that provided key insights into our immune system and what makes us unique compared with our extinct ancestors.

    Svante Paabo: His work, explained

    • Svante Paabo’s seminal discoveries provide the basis for exploring what makes us uniquely human.
    • Hominins refer to the now-extinct species of apes that are believed to be related to modern humans, as well as modern humans themselves.
    • Paabo found that gene transfer had occurred from these now extinct Hominins to Homo sapiens following the migration out of Africa around 70,000 years ago.
    • This ancient flow of genes to present-day humans has physiological relevance today, for example affecting how our immune system reacts to infections.
    • Paabo established an entirely new scientific discipline, called paleogenomics that focuses on studying the DNA and genetic information of extinct hominins through reconstruction.

    What is the relation between evolution and biology?

    • Paabo’s discoveries have established a unique resource, which is utilized extensively by the scientific community to better understand human evolution and migration.
    • We now understand that archaic gene sequences from our extinct relatives influence the physiology of present-day humans.

    How did Paabo establish the linkage?

    • Paabo extracted DNA from bone specimens from extinct hominins, from Neanderthal remains in the Denisova caves of Germany.
    • The bone contained exceptionally well-preserved DNA, which his team sequenced.
    • It was found that this DNA sequence was unique when compared to all known sequences from Neanderthals and present-day humans.
    • Comparisons with sequences from contemporary humans from different parts of the world showed that gene flow, or mixing of genetic information among a species, had also occurred between Denisova and Homo sapiens – the species of modern-day humans.
    • This relationship was first seen in populations in Melanesia (near Australia) and other parts of South East Asia, where individuals carry up to 6% Denisova DNA.
    • The Denisovan version of the gene EPAS1 confers an advantage for survival at high altitudes and is common among present-day Tibetans.

    What are the challenges in carrying out such research?

    • There are extreme technical challenges because with time DNA becomes chemically modified and degrades into short fragments.
    • The main issue is that only trace amounts of DNA are left after thousands of years, and exposure to the natural environment leads to contamination with DNA.

    Back2Basics: Neanderthal Man

    neanderthal

    • Neanderthals were humans like us, but they were a distinct species called Homo Neanderthalensis.
    • Together with an Asian people known as Denisovans, Neanderthals are our closest ancient human relatives. Scientific evidence suggests our two species shared a common ancestor.
    • Current evidence from both fossils and DNA suggests that Neanderthal and modern human lineages separated at least 500,000 years ago. Some genetic calibrations place their divergence at about 650,000 years ago.
    • The best-known Neanderthals lived between about 130,000 and 40,000 years ago, after which all physical evidence of them vanishes.
    • They evolved in Europe and Asia while modern humans – our species, Homo sapiens – were evolving in Africa.

     

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  • Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

    Light Combat Helicopter (LCH) Prachand inducted into IAF

    Prelims Only | Trivia | Mains Paper 3: Indigenization Of Technology

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: LCH Prachanda

    Mains level: Not Much

    lch

    The indigenous Light Combat Helicopter LCH-Prachand was formally inducted into the Indian Air Force (IAF).

    LCH- Prachand

    • The LCH has been designed as a twin-engine, dedicated combat helicopter of 5.8-ton class, thus categorized as light.
    • It features a narrow fuselage and tandem — one behind the other — configuration for pilot and co-pilot. The co-pilot is also the Weapon Systems Operator (WSO).
    • While LCH inherits many features of the ALH-Dhruv, it mainly differs in tandem cockpit configuration, making it sleeker.
    • It also has many more state-of-art systems that make it a dedicated attack helicopter.

    Features, the significance of LCH

    • LCH has the maximum take-off weight of 5.8 tonnes, a maximum speed of 268 kilometers per hour, range of 550 kilometers.
    • It has endurance of over three hours and service ceiling the maximum density altitude to which it can fly — of 6.5 kilometres.
    • LCH is powered by two French-origin Shakti engines manufactured by the HAL.

    Combat capabilities

    • The helicopter uses radar-absorbing material to lower radar signature and has a significantly crash-proof structure and landing gear.
    • A pressurised cabin offers protection from nuclear, biological and chemical (NBC) contingencies.
    • With these features, the LCH has the capabilities of combat roles such as destruction of enemy air defence, counter-insurgency warfare, combat search and rescue, anti-tank, and counter surface force operations.

    Why need indigenous LCH?

    • It was during the 1999 Kargil war that the need was first felt for a homegrown lightweight assault helicopter that could hold precision strikes in all Indian battlefield scenarios.
    • This meant a craft that could operate in very hot deserts and also in very cold high altitudes, in counter-insurgency scenarios to full-scale battle conditions.
    • India has been operating sub 3 ton category French-origin legacy helicopters, Chetak and Cheetah, made in India by the HAL.

     

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  • Water Management – Institutional Reforms, Conservation Efforts, etc.

    Jal Jeevan Mission

    Prelims Only | Governance | Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Jal Jeevan Mission

    Mains level: NA

    Around 62% of rural households in India had fully functional tap water connections under the Jal Jeevan Mission.

    Jal Jeevan Mission

    • Jal Jeevan Mission, a central government initiative under the Ministry of Jal Shakti, aims to ensure access to piped water for every household in India.
    • The mission’s goal is to provide all households in rural India with safe and adequate water through individual household tap connections by 2024.
    • The Har Ghar Nal Se Jal program was announced by FM in the Budget 2019-20 speech.
    • This programme forms a crucial part of the Jal Jeevan Mission.
    • It is a central sector scheme with the Centre funding 50% of the cost with States and UTs, except for UT without a legislature, and 90% for NE and Himalayan states.

    Note: A fully functional tap water connection is defined as a household getting at least 55 litres of per capita per day of potable water all through the year.

    Components of the mission

    The following key components are supported under JJM-

    • Development of in-village piped water supply infrastructure to provide tap water connection to every rural household
    • Bulk water transfer, treatment plants and distribution network to cater to every rural household
    • Technological interventions for removal of contaminants where water quality is an issue
    • Retrofitting of completed and ongoing schemes
    • Greywater management

    Progress of the scheme

    • Tamil Nadu, Himachal Pradesh, Goa, and Puducherry reported more than 80% of households with fully functional connections.
    • However, less than half the households in Rajasthan, Kerala, Manipur, Tripura, Maharashtra, Madhya Pradesh, Mizoram and Sikkim had such connection.
    • Close to three-fourths of households received water all seven days a week and 8% just once a week.
    • On average, households got water for three hours every day, and 80% reported that their daily requirements of water were being met by the tap connections.

     

     

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  • RBI Notifications

    How Tokenization will change your online purchase?

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Tokenization

    Mains level: Transaction safety

    token

    The RBI’s deadline for tokenization of cards used in online payments passed on 30 September.

    What is Tokenization?

    • Tokenisation refers to the replacement of credit and debit card details with an alternative code called a ‘token’.
    • This token is unique for a combination of card, token requestor (the entity that accepts a request from the customer for tokenization of a card and passes it on to the card network to issue a token) and the device.

    How does it work?

    • Tokenizing credit and debit cards is a way to reduce the number of places where your card data can be found.
    • For instance, payments on Uber showed a warning that your card data will be saved with payment gateways such as Visa and Mastercard.
    • What it is saying is that a merchant like Uber will have to work with payment networks like Visa to convert the card details into a digital token, which is then used to validate transactions.
    • As a result, the card details you enter on the Uber app, or any online platform, are not stored on the company’s cloud servers, and are hence more secure.

    What is the digital token being used?

    • The digital token is a randomized string, usually alphanumeric. So, a 16-digit card number gets converted to something like 8f9%yf57ljTa.
    • It is generated by computer programmes, and the card network tags the token to your actual card details, and relays the token to the merchant.
    • When payments are to be requested, the merchant sends this token to the card network, which matches it against the saved details and validates the transaction.
    • A third party accessing the token won’t have use for it, since tokens will be unique across combinations of card, token requestor and merchants.

    Who can offer tokenization services?

    • Tokenisation can be performed only by the authorised card network and recovery of original Primary Account Number (PAN) should be feasible for the authorised card network only.
    • Adequate safeguards have to be put in place to ensure that PAN cannot be found out from the token and vice versa, by anyone except the card network.
    • RBI has emphasised that the integrity of the token generation process has to be ensured at all times.

    Benefits of Tokenization

    • Transaction safety: Tokenization reduces the chances of fraud arising from sharing card details.
    • Easy payments: The token is used to perform contactless card transactions at point-of-sale (PoS) terminals and QR code payments.
    • Data storage: Only card networks and card-issuing banks will have access to and can store any card data.

    How were the transactions processed?

    token

    • There are many players involved in processing one card transaction today:
    1. Merchant
    2. Payment aggregator
    3. Issuing bank
    4. Card network
    • When a transaction happens on a merchant platform, the data is sent to the payment aggregator (PA).
    • The PA next sends the details to either the issuing bank or the card network.
    • Then issuing bank sends an OTP and the transaction flows back.

    How will tokenization prevent online fraud?

    • Card details saved on an app are stored in cloud servers, which if hacked, can give the hacker access to information like card numbers, expiry dates, name of holder etc.
    • Though most merchants put special mechanisms to store card details in an obfuscated manner, it’s much more difficult to hack a bank or a Visa than it is to hack websites and apps.

    How does it differ from encryption?

    • The primary difference is that the token cannot lead one to the card details.
    • In encryption, a computer program obfuscates data using an encryption key, and this key can turn the data back to its original form.
    • In tokenization, however, there is no way to know what data a token represents unless one has access to the databases of the actual issuer of that token.
    • In many cases, laws don’t consider tokens as “sensitive data”, and hence, companies don’t have to ensure the same compliance to protect them.

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  • Higher Education – RUSA, NIRF, HEFA, etc.

    ‘Professors of Practice’ for all colleges, universities

    Prelims Only | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Professors of Practice

    Mains level: Not Much

    University Grants Commission (UGC) has issued new guidelines under which higher education institutes can create a new teaching position called Professor of Practice to hire experts from various sectors, in line with provisions that already exist in the Indian Institutes of Technology (IITs).

    Professors of Practice

    • If one is a distinguished professional in any field but do not have a formal academic qualification such as a PhD, he/she can still be eligible for appointment as faculty in any college or university in India.
    • To be eligible for appointment, an individual will have to be a “distinguished expert” who has made remarkable contributions in their professions.
    • The post is open to the institutions themselves to decide the sector from which they want to rope in professionals.

    Streams opened for this post

    • A professor of practice can be anyone with a background in a diverse range of areas from technology, science, social sciences, media, literature, armed forces, law, fine arts, etc.
    • However, the position is not open for those in the teaching profession — either serving or retired.

    Minimum qualifications

    • No formal academic qualification is necessary in order to be considered for this position if a person has been an “exemplary” professional in their field of work.
    • Currently, under the UGC’s minimum qualifications needs a PhD to be recruited as a professor or associate professor, and also needs to have cleared the National Eligibility Test (NET).

    Will the professor of practice be a full-time position?

    • It can be either a full-time or a part-time engagement for at least four years.
    • Initially, the hiring will be for one year.
    • Based on performance, extensions may be given.

    How will these appointments be made?

    • Universities and colleges will carry out appointments on a nomination basis.
    • In other words, vice-chancellors or directors have been authorized to invite nominations for filling up posts, which cannot exceed 10 percent of the sanctioned faculty strength of an institute.
    • After nominations are invited, those interested can send their applications with detailed biodata and a brief write-up about the ways they can potentially contribute.
    • The applications will be considered by a selection committee comprising two senior professors from the respective institute, and one “eminent external member”.
    • Based on the recommendations of the committee, the academic council and the executive council of the institutes will take the final call on appointment.

    What about remuneration?

    • The remuneration will be decided at the level of the institutes and the experts being hired.
    • In some cases, universities can even approach industries for financial support.

    Why such move?

    • India’s higher education institutes are understaffed, with thousands of vacancies across central and state universities.
    • So the UGC is hoping that recruiting industry experts and professionals will help “augment faculty resources” in universities and colleges.
    • The move is aimed at addressing concerns about the quality of graduates being produced by Indian colleges and universities.
    • Around the world, the idea of a professor of practice aims essentially to facilitate and promote the integration of academic scholarship with practical expertise and experience.

     

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  • Air Pollution

    PUC Certificate must to buy fuel in New Delhi

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: PUC Certification

    Mains level: Delhi Air Pollution issue

    Motorists will not be able to buy fuel in Delhi without a valid Pollution Under Control (PUC) certificate from October 25.

    What is PUC Certificate?

    • The PUC certificate is a document that any person driving a motor vehicle can be asked to produce by a police officer in uniform authorized by the state government.
    • These issue certificates if a vehicle is found complying with the prescribed emission norms.
    • Since the Motor Vehicles (Amendment) Act, 2019 came into force, PUC certificate has been made mandatory.
    • A PUC certificate contains information such as the vehicle’s license plate number, PUC test reading, date on which the PUC test was conducted and the expiry date.

    Compliance rules

    • According to Central Motor Vehicles Rules, 1989, every motor vehicle is required to carry a valid PUC Certificate after the expiry of period of one year from the date of its first registration.
    • This includes those conforming to BS-I/ BS-II/ BS-III/BS-IV /BS-VI as well as vehicles plying on CNG/LPG.
    • However, the validity of four-wheeled BS-IV compliant vehicles is one year and for other vehicles it is three months.

    How is a pollution control check carried out?

    • The computerized model for pollution check was developed by the Society of Indian Automobile manufacturers.
    • A gas analyzer is connected to a computer, to which a camera and a printer are attached.
    • The gas analyzer records the emission value and sends it to the computer directly, while the camera captures the license plate of the vehicle.
    • Subsequently, a certificate may be issued if the emission values are within the limits.

    Why obtain PUC Certificate?

    • Emissions from automobiles are major contributors to air pollution all over the world.
    • The smoke emitted from vehicles contains the following pollutants:
    1. Hydrocarbons (HC)
    2. Carbon Monoxide (CO)
    3. Oxides of Nitrogen (NOx)
    4. Particulate Matter (PM)
    5. Sulphur Dioxide (SO2)
    6. Carbon Dioxide (CO2)
    7. Nitrous Oxide (N2O)

     

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  • Innovations in Biotechnology and Medical Sciences

    MeFSAT Database for Medicinal Fungi

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MeFSAT

    Mains level: Not Much

    mefsat

    An analytical study of medicinal fungi using MeFSAT carried out by researchers from Chennai shows that some chemicals they secrete may find use as novel drugs.

    What is MeFSAT?

    • MeFSAT (Medicinal Fungi Secondary Metabolites and Therapeutics) is a database that compiles information on 184 medicinal fungi, including mushrooms.
    • It is a manually curated database that compiles information on secondary metabolites and reported therapeutic uses of medicinal fungi from published research articles and specialized books on the subject.

    Why in news?

    • Chennai-based researchers analysed the structure of 1,830 secondary metabolites of medicinal fungi.
    • Secondary metabolites are chemical compounds that fungi produce when they are stressed.
    • They enhance the fungus’ ability to survive.

    What are medicinal fungi?

    • Medicinal fungi belongs to two taxonomic divisions namely, basidiomycota and ascomycota.
    • Mushrooms belong to the basidiomycota division. An example is Agaricus bisporus, the button mushroom, which can be consumed.
    • Fungi belonging to the ascomycota division are generally not mushrooms.

    Examples of fungi-based medicines

    • Cordycepin, a secondary metabolite produced by Cordyceps species of fungus, is known to have anti-tumor properties.
    • Not only cordycepin, in general, but several secondary metabolites are also known to be beneficial for humans in terms of both therapy and health.

     

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Forex Reserves to dip by $23 billion by Dec

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Forex reserves, BoP

    Mains level: Read the attached story

    India’s depleted foreign exchange reserves are likely to drop further, falling to their lowest level in more than two years by end-2022.

    Forex to dip

    • In a battle that has so far failed to staunch the rupee’s fall to a record low against the greenback, the RBI has drawn down its foreign exchange reserves by close to $100 billion, to $545 billion.
    • Those reserves are forecast to fall another $23 billion to $523 billion by the end of this year.

    What is Foreign Exchange (Forex) Reserve?

    • Foreign exchange reserves are important assets held by the central bank in foreign currencies as reserves.
    • They are commonly used to support the exchange rate and set monetary policy.
    • In India’s case, foreign reserves include Gold, Dollars, and the IMF’s quota for Special Drawing Rights.
    • Most of the reserves are usually held in US dollars, given the currency’s importance in the international financial and trading system.
    • Some central banks keep reserves in Euros, British pounds, Japanese yen, or Chinese yuan, in addition to their US dollar reserves.

    India’s forex reserves cover:

    • Foreign Currency Assets (FCAs)
    • Special Drawing Rights (SDRs)
    • Gold Reserves
    • Reserve position with the International Monetary Fund (IMF)

    Countries with the highest foreign reserves

    Currently, China has the largest reserves followed by Japan and Switzerland. India has overtaken Russia to become the fourth largest country with foreign exchange reserves. (Data from August 2022)

    1. China – $3,349 Billion
    2. Japan – $1,376 Billion
    3. Switzerland – $1,074 Billion
    4. India – $612.73 Billion
    5. Russia – $597.40 Billion

    Why are these reserves so important?

    • All international transactions are settled in US dollars and, therefore, required to support India’s imports.
    • More importantly, they need to maintain support and confidence for central bank action, whether monetary policy action or any exchange rate intervention to support the domestic currency.
    • It also helps to limit any vulnerability due to sudden disturbances in foreign capital flows, which may arise during a crisis.
    • Holding liquid foreign currency provides a cushion against such effects and provides confidence that there will still be enough foreign exchange to help the country with crucial imports in case of external shocks.

    Initiatives taken by the government to increase forex

    • To increase the foreign exchange reserves, the Government of India has taken many initiatives like AatmaNirbhar Bharat, in which India has to be made a self-reliant nation so that India does not have to import things that India can produce.
    • Other than AatmaNirbhar Bharat, the government has started schemes like Duty Exemption Scheme, Remission of Duty or Taxes on Export Product (RoDTEP), Nirvik (Niryat Rin Vikas Yojana) scheme, etc.
    • Apart from these schemes, India is one of the top countries that attracted the highest amount of Foreign Direct Investment, thereby improving India’s foreign exchange reserves.

     

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