THE ENVIRONMENT AND ECOLOGY

1. RADIO TAGGING OF INDIAN PANGOLIN

THE CONTEXT: The Odisha Forest and Environment Department has completed its first-ever radio-tagging of the Indian pangolin in an attempt to standardise the rehabilitation protocol for the animal in the State.

THE EXPLANATION: 

• According to the forest department a male pangolin, which was rescued by the Paralakhemundi Forest Division November 2021, was radio-tagged and released in the Nandankanan Wildlife Sanctuary after treatment.
• “To standardise the rehabilitation protocol for such rescued animals, a radio-tagged Indian pangolin was released into the wild in Nandankanan Wildlife Sanctuary following soft release protocols and provision for post-release monitoring”.
• The animal was screened for parasites and diseases during a month-long quarantine at the Nandankanan Zoological Park (NZP), which is the only conservation breeding centre for Indian pangolins in the world.
• According to the forest officials, “the pangolin was found suitable for release in the wild. It gained 780 grams during quarantine and now weighs 14.740 kg. It is exhibiting normal behaviour. It is fitted with a VHF [very high frequency] radio transmitter, weighing 0.5% of its body weight, procured from advanced telemetry systems specialised in radio telemetry instruments”.
• After Madhya Pradesh, Odisha is the second State in the country to release a radio-tagged Indian pangolin into the wild. NZP authorities said the exercise was expected to reveal valuable information on the ecology, dispersal pattern, home range and survival of the reclusive animal.

What is Radio Tagging?

Radio-tracking is the technique of determining information about an animal through the use of radio signals from or to a device carried by the animal. Most radio tracking systems involve transmitters tuned to different frequencies (analogous to different AM/FM radio stations) that allow individual identification.

About Indian Pangolin

The Indian pangolin or thick-tailed pangolin is a solitary, shy, slow moving, nocturnal mammal, Unlike other pangolin species, the Indian pangolin does not often climb trees. Pangolins or scaly anteaters (order Pholidota, meaning ‘scaled animals’) are a group of unusual mammals with tough, protective keratin scales.

Distribution: Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Threats:

• Once known to be found in large numbers, its population is rapidly declining in its range due to habitat loss and rampant poaching for its skin, scales, and meat.
• Pangolins are the most illegally traded mammals in the world and the Indian pangolin is the largest among eight pangolin species. The nocturnal animal lives in burrows and feed on ants and termites. In Odisha, seizures of pangolins and their scales have been made over the past few years.

Conservation status:

• All pangolin species are listed in Convention on International Trade in Endangered Species (CITES) Appendix I.
• In India, pangolins, both Indian and Chinese, are protected under Schedule 1 of the Wildlife (Protection) Act 1972

THE INDIAN ECONOMY

2. ELECTORAL BONDS

THE CONTEXT: Ahead of assembly elections in five states, the Union government approved the issuance of the 19th tranche of electoral bonds which will be open for sale from January 1 to 10 2022.

THE EXPLANATION:

• Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding. However, Opposition parties have been raising concerns about alleged opaqueness in funding through such bonds.
• The 29 specified SBI branches are in cities such as Lucknow, Shimla, Dehradun Kolkata, Guwahati, Chennai, Thiruvananthapuram, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.

What are Electoral Bonds?

• The Government of India has notified the Electoral Bond Scheme 2018. As per provisions of the Scheme, Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India. A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals.
• Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one percent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the Electoral Bonds. The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
• State Bank of India (SBI), has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches ( as per list enclosed) e.f. 01.07.2021 to 10.07.2021.
• The Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.

INTERNAL SECURITY

3. AFSPA EXTENDED IN NAGALAND

THE CONTEXT: The Government of India has extended the Armed Forces Special Powers Act, 1958 in Nagaland for another six months (June 30, 2022). The decision came days after the Home Ministry had instituted a high-level committee chaired by a Secretary-level officer for examining the possibility of AFSPA repeal in Nagaland.

THE EXPLANATION:

• The Central Government issued a notification in which it declared an entire state of Nagaland as a ‘disturbed area’ and extended the AFSPA, 1958 in the state for the period of another six months. Govt extending the Armed Forces act till June 30, 2022, stated that Nagaland’s ‘disturbed and dangerous’ situation has necessitated the use of armed forces in aid of the civil power. The Indian Army is also currently conducting a court of inquiry into an ambush that went wrong in Nagaland.
• The decision came three weeks after 6 innocent civilians in early December 2021, in the state were killed in an Army ambush and eight more in the violence that was triggered in Mon District, Nagaland

Govt demands repeal of the law

• In view of the improved situation in the Northeast state, the Nagaland government has been consistently taking a stand that the state must not be declared a ‘disturbed area’ and the entire Naga Society has been calling to repeal AFSPA.
• The Chief Minister while informing about the State govt’s clear stand on the law further added that the declaration of a state or any other area as the ‘disturbed area’ under AFSPA is made by the Central Government generally for a period of 6 months only at a time.
• The State Government has passed a resolution against the Armed Forces Special Act that has been adopted in the aftermath of the killing of 14 civilians by the security forces.

What is Armed Forces Special Powers Act (AFSPA)?

How is a region declared ‘disturbed’?

• Section (3) of the AFSPA empowers the governor of the state or Union territoryto issue an official notification in The Gazette of India, following which the Centre has the authority to send in armed forces for civilian aid.
• Once declared ‘disturbed’, the region has to maintain status quo for a minimum of three months, according to The Disturbed Areas (Special Courts) Act, 1976.

 Criticism of AFSPA:

• Sec 4(a) in which army can shoot to kill, as it violates article 21 which gives right to life.
• Section 4(b) search without warrants violates right to liberty and article 22.
• Dispersion of civil assembly by armed forces under section 121 violates right to assembly
• No judicial magistrate permission required while arresting –violate article 22
• Overrides CrPC.
• Violation of human rights
• It alienates the people from army and then from the rest of India. A feeling of otherworldly is generated in their mind.

What should be done?

• Create committees at the district level with representatives of the army, administrators and the public which will report, assess and track complaints in that area.
• All investigations should be time bound reasons for the delay must be communicated with the aggrieved.
• Amendments In-Laws :The lacunae in the Act, as a result of definitional voids with respect to terms like “disturbed”, “dangerous” and “land forces” need to be amplified to ensure greater clarity.
• The onus of proving the alleged person as terrorists should lie with the forces. Sec 7 should be suitable amended to this effect.

4. CHINA ISSUES ‘OFFICIAL’ NAMES FOR 15 PLACES IN ARUNACHAL PRADESH

THE CONTEXT: China’s Ministry of Civil Affairs issued a statement stating that they have ‘standardised’ names for 15 places in Arunachal Pradesh, to be used on Chinese maps. This is the second time China has renamed the names of the places of Arunachal Pradesh.

THE EXPLANATION:

• China shares its 22,457 km land boundary with 14 countries including India, the third longest after the borders with Mongolia and Russia.
• The Ministry of External Affairs has dismissed the Chinese “invention”. According to the ministry ,“Arunachal Pradesh has always been, and will always be, an integral part of India. Assigning invented names to places in Arunachal Pradesh does not alter this fact.”

Why is China giving names to places that are in India?

• China claims some 90,000 sq km of Arunachal Pradesh as its territory. It calls the area “Zangnan” in the Chinese language and makes repeated references to “South Tibet”. Chinese maps show Arunachal Pradesh as part of China, and sometimes parenthetically refer to it as “so-called Arunachal Pradesh”.
• China makes periodic efforts to underline this unilateral claim to Indian territory. Giving Chinese names to places in Arunachal Pradesh is part of that effort.

“According to relevant regulations on the management of place names, the department has standardised some place names in China’s South Tibet region. We have released the first batch of the place names in South Tibet (six in total).

The latitude and longitude listed with the names showed those places as Tawang, KraDaadi, West Siang, Siang (where Mechuka or Menchuka is an emerging tourist destination), Anjaw, and Subansiri respectively.

These six places spanned the breadth of Arunachal Pradesh — “Wo’gyainling” in the west, “Bumo La” in the east and the other four located in the central part of the state.

What is China’s argument for claiming these areas?

• The People’s Republic of China disputes the legal status of the McMahon Line, the boundary between Tibet and British India that was agreed at the Simla Convention — officially the ‘Convention Between Great Britain, China, and Tibet’ — of 1914.
• China was represented at the Simla Convention by a plenipotentiary of the Republic of China, which had been declared in 1912 after the Qing dynasty was overthrown. (The present communist government came to power only in 1949, when the People’s Republic was proclaimed.) The Chinese representative did not consent to the Simla Convention, saying Tibet had no independent authority to enter into international agreements.
• The McMohan Line, named after Henry McMahon, the chief British negotiator at Shimla, was drawn from the eastern border of Bhutan to the Isu Razi pass on the China-Myanmar border. China claims territory to the south of the McMahon Line, lying in Arunachal Pradesh.

THE MISCELLANEOUS

5. SAHITYA AKADEMI AWARDS

THE CONTEXT: The Sahitya Akademi announced its prestigious “Sahitya Akademi Awards, YuvaPuraskar as well as Bal Sahitya Puraskar” for 2021 in various languages.

THE EXPLANATION:

• The Sahitya Akademy Award 2021 was given in 20 Indian languages.
• Namita Gokhale received it in English for her novel titled ‘Things to Leave Behind’.

Other winners include:

• Anuradha Sarma Pujari (Assamese)
• BratyaBasu (Bengali)
• Daya Prakash Sinha (Hindi)
• WaliMohdAseerKashtawari (Kashmiri)
• Khalid Hussain (Punjabi)
• Vindeshwari prasad Mishr “Vinay” (Sanskrit) etc.

Sahitya AkademiYuvaPuraskar 2021

• The Sahitya AkademiYuvaPuraskar 2021 was given in 22 Indian languages.
• Megha Majumdar won this award for her debut book ‘A Burning’, which was published in 2020. This book is about struggles of life in India.
• Megha Majumdar was born in India, but now lives in New York and works as an Editor in chief- Books at Catapult Story.

Other winners of the award include:

• Abhijit Bora (Assamese)
• Gourob Chakraborty (Bengali)
• DrashtiSoni (Gujarati)
• Himanshu Vajpai (Hindi)
• Mahesh Dahal (Nepali)
• SwetapadmaSatapathy (Sanskrit) etc.

Bal Sahitya Puraskar 2021

• The Bal Sahitya Puraskar 2021 was given in 22 Indian languages.
• Anita Vachharajani won the award in the English language. She was awarded for her children’s book titled ‘Amrita Sher-Gil: Rebel With A Paintbrush’.

Other winners include:

• Mrinal Chandra Kalita (Assamese)
• Sunirmal Chakraborty (Bengali)
• Devendra Mewari (Hindi)
• Majeed Majazi (Kashmiri) etc.

The Sahitya Akademi Award

• It is a literary honour in India, conferred annually by the Sahitya Akademi. Award is conferred on writers of the most outstanding books of literary merit, which are published in any of 24 major Indian languages and 22 languages that are listed in the Eighth Schedule of the Indian Constitution. The award was established in 1954.

THE PRELIMS PRACTICE QUESTION

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THE CONTEXT: The retail inflation in the Indian economy accelerated in Nov. 2021 towards the upper limit of the RBI’s target range as fruit and vegetable prices rose. There are chances that inflation may rise above 6 percent in early 2022. It is fear that the rising of inflation can impact the recovery of the Indian economy in post-pandemic times. Let us understand the issue of inflation that is impacting the Indian Economy.

TREND OF INFLATION IN INDIA

• In the latest bi-monthly meeting of MPC in December 2021, the committee projects 5.30% inflation rate for FY22 and a dovish forecast at around 5% thereafter.
• Retail inflation rose 4.48 percent in October 2021 from 4.35 percent in September. The data for November 2021 is yet to come. It will release on 13^th
• The food inflation: determined by the consumer food price index rose to 0.85 percent in October, compared to 0.68 percent in September. The inflation in the ‘fuel and light’ category remained elevated at 14.35 percent during the month, according to data released by the National Statistical Office (NSO).

 REASONS FOR THE RISING IN INFLATION IN INDIA

• The sharp rise in commodity prices across the world is a major reason behind the inflation spike in India. This is increasing the import cost for some of the crucial consumables, pushing inflation higher.
• High petrol, diesel, and cooking gas prices drove fuel inflation, while high prices of basic metals, textiles, plastics, and edible oils drove inflation of manufactured items.
• The price of vegetable oils, a major import item, shot up 57% to reach a decadal high in April 2021.
• Metals prices are near the highest in 10 years and international freight costs are escalating.
• The rise in inflation was mostly due to rising in prices of fuel, edible oil prices, and non-alcoholic beverages. Retail inflation edged higher last month despite the base effect as it stood at 7.61 percent in October 2020, while the food inflation was at 11 percent in the year-ago period.

 EFFECTS OF INFLATION ON VARIOUS ASPECTS OF THE ECONOMY AND ECONOMIC GROWTH

NEGATIVE EFFECT

• On Imports: They become costly due to high inflation as the currency depreciates and more foreign currency is lost for imports.

• On Lending: Lending institutions (like banks) feel the pressure of higher lending due to the high inflation rate in the economy. Therefore, they don’t revise the nominal interest rates as the real cost of borrowing falls by the same percentage with which the inflation rises.
• On Income: Increase in inflation increases the nominal value of income while the real value of income remains the same.

• On Expenditure: Increased prices make consumption levels fall as goods and services get costlier.

POSITIVE EFFECT

• On Exports: Inflation makes exportable goods competitive in the world market and thus exports increase.
• On Aggregate demand: High rate of inflation shows there is high demand
• On Savings: Money loses value due to inflation, that’s why people keep less money with them and keep more money in banks. It means that the savings rate increases in the short run. In long run, higher inflates deplete the savings rate in an economy.
• On Wages: Inflation increases the nominal value of wages but their real values fall.

WILL INFLATON DENT ECONOMIC RECOVERY?

• One of the key factors why inflation probably witnessed a rise in November is the sharp rise in the prices of various vegetables. The jump in vegetable prices, though temporary, could hit demand and disrupt economic recovery for a short period.
• While fuel prices have been cut by the government, it seems that fuel demand has fallen after the festive season. This indicates a lower demand for fuel. India’s fuel consumption in November was down 4 percent on a quarterly basis and over 11 percent lower year on year.
• However, the demand will rise again as Covid-19 fades further. This indicates that the present scenario of inflation is unlikely to impact economic recovery for a long period.

BUT RISING INPUT COST BIGGEST WORRY FOR ECONOMIC RECOVERY

• While vegetable prices and fuel demand may fade away over the next few months, India could face a period of persistently high inflation due to rising input costs.
• Many companies across the spectrum from automakers to electronic goods manufacturers have hiked prices of their products due to prolonged disruption in global supply chains and a severe shortage of semiconductors. Car manufacturers are already going for another round of price hikes in January 2022.
• Rising inflation in the non-food category, arising from global supply chain disruptions and fresh restrictions due to the new Omicron variant of coronavirus, seems to be the biggest hurdle in the path of swift economic recovery.

ROLE OF RBI IN CONTROLLING INFLATION

The RBI has adopted policies through which it decreases or increases certain rates to control inflation. Hence it is important to understand what these rates are and how they affect inflation.

1. Interest rate

• Repo Rate- Repo rate (Repurchase or Repossession) is the rate at which RBI buys government securities with an agreement of repossession, from the commercial banks. It is a short-term borrowing from the central bank, against securities, to inject money to meet the gap between the demand for money (loans) and deposits in the bank.
• Reverse Repo rate- It is the rate at which the RBI borrows money from commercial banks. Banks deposit money in RBI when there is no other profitable option to invest the short-term excess liquidity or when there is uncertainty in the market for a significant period of time.
• Bank Rate- Bank rate is the rate at which the RBI allows finance to the domestic banks. It is generally for a short period of time. Unlike, Repo rate, there are no securities to be kept against the finance. But, in policies designed to control inflation, Bank rates are seldom revised.

2. Reserve Ratios

• Cash Reserve Ratio- Banks are required to keep a fraction of deposit liabilities in the form of liquid cash, CRR, with the RBI to ensure the safety and liquidity of the deposits.
• Statutory Liquidity Ratio- Every bank in India has to maintain a minimum proportion of their net demand and time deposits as liquid assets in the form of cash, gold, precious and semiprecious stones. SLR has nearly remained constant for the last 14 years.

3. Open Market Operations

• The RBI can purchase or sell Government securities from or to the public. To control inflation, the RBI sells the securities in the money market which sucks out excess liquidity from the market. As the amount of liquid cash decreases, demand goes down. This part of monetary policy is called the open market operation.

4. Selective Credit Control

• The Banking Regulation Act empowers the RBI to control the level and pattern of advances given by banks, selectively.
• The RBI has been operating selective credit control to contain inflation of goods that are short in supply or sensitive goods like food grains, vegetables, pulses, oilseeds, cotton, sugar, gur, Khansari, etc which are of mass consumption.

BRIEF BACKGROUND TO UNDERSTAND THE TOPIC

1. Definition of Stagflation – It is a stage of persistently high inflation combined with high unemployment and stagnant demand in a country’s economy.
2. Constituents of WPI and CPI
   1. WPI
      1. The wholesale Price Index (WPI) is an indicator of price changes in the wholesale market.
      2. It constitutes primary articles (22.62), fuel and power(13.15), and manufactured goods (64.23) with their weights being in the brackets.
      3. It is released by the office of the Economic Advisor in the ministry of commerce and Industry.
   2. CPI
      1. Consumer Price Index (CPI) is a price index that represents the average price of a basket of goods over time. CPI calculates the average price paid by the consumer to the shopkeepers.
      2. It is calculated on the basis of 8 groups – Education, communication, transportation, recreation, apparel, foods and beverages, housing, and medical care.
      3. Published by CSO.
   3. Monetary Policy Committee
      1. It is statutorily created by amending the RBI Act 1934.
      2. It consists of six members with three being from RBI and 3 appointed by the government
      3. It seeks to maintain inflation in the range of 4 +/- 2% range i.e. 2 to 6% rate.

THE WAY FORWARD

The current Inflation spike is largely due to seasonal factors and thus will subside in a month or two. However, the major focus should lie in boosting growth so that the country doesn’t enter into a phase of stagflation. The following steps can be taken for boosting growth while controlling inflation.

FOR CONTROLLING INFLATION

Supply-side Reforms: Government needs to take steps to boost supply especially of food articles such as vegetables and pulses by bringing more area under cultivation through reclamation of fallow land and increasing productivity.

Prevention of Hoarding and Nexus: Hoarding and nexus between middlemen lead to an increase in inflation without any external factor and harm the interest of consumers. This needs to be prevented through proper monitoring of inflow and outflow of Mandis and through digitalisation of agricultural markets.

FOR BOOSTING GROWTH

Balancing Growth and Inflation: RBI has already cut the interest rates by 135 basis points but has not been passed on to the customer and market due to no change by the banks. Thus, the RBI cannot cut the interest rate anymore for improving growth but we need to focus on banks for better transmission of rates leading to boosting growth.

Boosting Private Sector Investment: Private sector investment can be improved through simplification of policy procedures and maintaining a sound economic environment. Constant protests and abrupt policy changes are going to stop investments and thus a proper environment is important for boosting private sector investment.

Structural Reforms: Land, Labour, Agriculture, and taxation need structural reforms so as to improve both the business and agriculture environment.

Regulation: Demonetisation, GST, Automobile policy, E-commerce policy, etc. have all been abrupt policies that impacted the market drastically. A business flourishes when provided with predictable environmental conditions and thus abrupt changes should be avoided. Instead of creating policy on a day-to-day basis, the government should provide the major regulations along with the budget at the start of the fiscal year and should only do minuscule adjustments around the year.

THE CONCLUSION: Indian Economy is suffering from huge challenges of suppressed growth, investment, production while inflation is increasing along with large unemployment figures. In short, all that can go wrong has been going wrong, and thus, there is a need for a predictable growth model for the Indian economy which the government has failed to provide. It is time, that instead of modifying older policies, the government needs to provide a clear model for boosting growth in all primary, secondary and tertiary sectors. Structural reforms need to be undertaken in the land, labour, and capital. Companies need to be provided with predictable regulatory regimes. The market needs to be given time to adjust to policy changes. Judiciary and the legal system need to be sensitized so as to handle economic cases so that the verdict doesn’t threaten the investors. Lastly, agriculture has the biggest multiplier effect on growth and thus agriculture needs to be boosted with long-term policies and not limited to superficial changes in MSP and loan waivers.

GEOGRAPHY: DISTRIBUTION OF NATURAL RESOURCES

1. GOA APPROVES EXPORT OF LOW-GRADE IRON ORE

THE CONTEXT: The Goa state Government permitting mining companies to export low-grade iron ore, paving the way for the resumption of mining activity that has been stalled since 2018.

THE EXPLANATION:

• According to the Government, about 10 to 20 million tonnes of low-grade iron ore were lying at different locations outside the mining leases and could sustain mining activity in Goa for the next four-five years.
• “The State government has formulated a policy for regularisation of mining dumps on government and private land. The Chief Minister stated that in the past the State Land Revenue Code had empowered the government to impose fines if the land was used for dumping mining rejects or similar materials without permission.
• Goa’s mining sector, which contributed about 15-16% of the State’s Gross Domestic Product in 2011-12, now accounts for barely 2%.
• In March, the Supreme Court had deemed Goa’s mining lease renewals to be illegal and canceled 88 such leases that had been renewed by the State government in 2014-15.
• In March 2021 the Supreme Court had deemed Goa’s mining lease renewals to be illegal and canceled 88 such leases that had been renewed by the State government in 2014-15.
• The government would take over the mining dumps where the penalty was not paid and auction the ore.

Value Addition:

The total recoverable reserves of iron ore in India are about 9,602 million tonnes of hematite and 3,408 million tonnes of magnetite. Chhattisgarh, Madhya Pradesh, Karnataka, Jharkhand, Odisha, Goa, Maharashtra, Andhra Pradesh, Kerala, Rajasthan and Tamil Nadu are the principal Indian producers of iron ore.

INDIAN POLITY AND GOVERNANCE

2. TUSSLE OVER THE ELECTION OF MAHARASHTRA ASSEMBLY SPEAKER

THE CONTEXT: Amid ongoing tensions between the Governor of Maharashtra and the State Government over the election to the Speaker of the Assembly, and the winter session of the state assembly ends but the Governor has not given his consent to the election programme recommended by the Cabinet.

THE EXPLANATION:  

What Constitution says?

Article 178 of the Constitution states: “Every Legislative Assembly of a State shall, as soon as may be, choose two members of the Assembly to be respectively Speaker and Deputy Speaker thereof and, so often as the office of Speaker or Deputy Speaker becomes vacant, the Assembly shall choose another member to be Speaker or Deputy Speaker, as the case may be.”

The Constitution does not specify the process of holding these elections; that is left to the state legislatures. It also does not set a timeframe other than to say the elections should be held “as soon as maybe”.

Some states lay down timeframes

• In Haryana, the election of the Speaker must be held as soon as possible after the Assembly election, and the Deputy Speaker must be elected within another seven days.
• In UP, the Speaker’s election is required to be held within 15 days if the post falls vacant during the term of the Assembly.
• The date for the Speaker’s election is notified by the Governor.

A crucial case in Maharashtra

• As per Rule 6 of the Maharashtra Legislative Assembly Rules, “The Governor shall fix a date for the holding of the election and the Secretary shall send to every member notice of the date so fixed.”
• A former Secretary of the state Assembly said the election of the Speaker can take place only after the Governor fixes the date for it.

What are the recent amendments?

• The govt has moved a motion in the Assembly seeking amendments to Rules 6 (election of Assembly Speaker) and 7 (election of Deputy Assembly Speaker) by voice vote instead of a secret ballot.
• The amendments excluded the words “holding of the election” and included the words “to elect the Speaker on the recommendation of the Chief Minister” in Rule 6 of Maharashtra Assembly Rules.

What are the objections to these amendments?

• The Opposition accused the govt of running the “most insecure government” that does not trust its MLAs and fears there would be cross-voting in the election of the Speaker.
• It argued that the Rules cannot be amended in the absence of the Speaker.

What is the government’s position?

• The government has argued that the amendments are in line with the Rules that are in practice in Lok Sabha, the Upper House of the state legislature, and in the Assemblies of several other states.
• It has also been said that the amendments would put an end to horse-trading.

What is the way ahead?

• The govt can explore legal options to see whether the election of the Speaker could be held without the consent of the Governor. However, the situation is very odd.
• While Rule 6 mandates that the Governor should fix the date for the election, the amendment says that the Governor should fix the date on the advice of the CM.

3. NORTHEASTERN REGION DISTRICT SDG INDEX: NITI AAYOG

THE CONTEXT: Niti Aayog with technical support from UNDP, released the first its kind Northeastern Region District SDG Index. The index measures the performance of the district of the eight NE States. This SDG Index will be used as a base for planning of development and welfare activities, education, health care.

THE EXPLANATION:  

According to the report, the East Sikkim district of Sikkim has topped the Northeastern Region (NER) District SDG Index 2021-22 while the Kiphire district of Nagaland was ranked last amongst 103 districts in the ranking. Gomati, North Tripura is second, West Tripura is third in the ranking.

What is NER District SDG Index?

• The Index measures the performance of the districts of the eight states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura on the Sustainable Development Goals and ranks these districts on the basis of the same.
• The index offers insights into the social, economic, and environmental status of the region and its districts in their march towards achieving the SDGs. East Sikkim was ranked first in the region, followed by districts Gomati and North Tripura in the second position.
• “The North-eastern Region District SDG Index will help in evidence-based planning, resource allocation, both financial as well as others, and effective supervision and monitoring of developmental efforts for focused and balanced regional development”.

Objectives:

• To strengthen the monitoring of SDGs for all States and Districts of the region
• To establish the NER District SDG Index as the comprehensive progress monitoring tool at the district level
• To enable the States and Districts to identify critical sectoral gaps
• To promote healthy competition in the region among States and Districts
• To facilitate cross-learning through good practices and challenges

4. ATAL RANKINGS FOR INNOVATION

THE CONTEXT: Ministry of Education released the “Atal Ranking of Institutions on Innovation Achievements (ARIIA),” out of which Sevan Indian Institutes of Technology (IITs) have made it to the top 10.

THE EXPLANATION:

• IIT Madras, IIT Bombay and IIT Delhi topped the rankings for technical central universities, for their innovative approach. The IITs in Kanpur, Roorkee, Hyderabad and Kharagpur also feature in the top 10.
• Other institutions on the list are Bengaluru’s Indian Institute of Science (IISc), Prayagraj’s Motilal Nehru National Institute of Technology, and the National Institute of Technology in Kozhikode (formerly Calicut).
• According to Education Ministry, the ARIIA rankings will “inspire Indian institutions to reorient their mindset and build ecosystems to encourage high-quality research, innovation and entrepreneurship in their campuses”. The rankings will inspire institutions to ‘reorient their mindset’, promote innovation to achieve $5 trillion economies by 2025.

What is ARIIA?

• ARIIA is an annual ranking released by the education ministry to recognize the contribution of institutions in research and innovation. It systematically ranks all major higher education institutions and universities in India on indicators related to the promotion and support of “innovation and entrepreneurship development” among students and faculty.
• The first edition of ARIIA was released in 2019 when a total of 496 institutes competed to get a ranking. This year, 1,438 institutions (including all IITs, NITs, IISc, etc.) participated.

Parameters:

• The parameters on which institutes were judged include academic courses offered on innovation and start-up, successful innovation and start-ups that emerged from campus, investment, collaboration and partnerships with ecosystem enablers, research outputs and technology transfer and commercialization efforts.
• The ranking is divided into two categories — technical and non-technical institutions. There are five sub-categories under the ‘technical’ category— central universities, state universities, private universities, government-aided institutions, and deemed private universities. Under ‘non-technical’ institutions, the categories are ‘central government’ and ‘general’.

THE DEFENCE AND SECURITY

5. INDIGENISATION2500 SUBSYSTEMS BARRED FROM IMPORTS: MOD

THE CONTEXT: Following the two positive indigenization lists barring the import of 209 major platforms and systems, the Defence Ministry notified a list of another 2,500 subsystems and components and 351 more imported items to be made locally in the next three years.

THE EXPLANATION:

• According to the Ministry of Defence, “The Atmanirbhar initiative will save foreign exchange approximately equivalent to ₹3,000 crores every year”.
• A positive indigenization list of subsystems and components had been notified by the Department of Defence Production as part of the MoD’s efforts to achieve self-reliance in manufacturing and minimize imports by the Defence Public Sector Undertakings (DPSUs). They would only be procured from the Indian industry after the timelines indicated in the list.

• “DPSUs will work in close coordination with local industrial supply chain to ensure strict adherence to the stipulated timelines.” Necessary certifications/approval of all items included in the list shall be granted on priority by the stakeholders concerned.

To reduce imports

• The positive indigenization list is among a series of measures announced recently to reduce defence imports and give a push to domestic manufacturing.
• At present, India’s defence and aerospace manufacturing market was worth ₹85,000 crores, of which the present contribution of the private sector was ₹18,000 crore. In 2022, the country’s defence and aerospace manufacturing market would increase to ₹1 lakh crore and could reach ₹5 lakh crore by 2047.
• The Ministry is also expected to put out the final version of the ‘Defence Production and Export Promotion Policy (DPEPP) 2020’, the draft of which has been released for public feedback.

Emerging technologies

• Indian Army said in its statement, “Army has also established an Artificial Intelligence (AI) Centre at the same institution with over 140 deployments in forwarding areas and active support of industry and academia. Training on cyberwarfare is being imparted through a state of art cyber range, and cyber security labs”.
• Ideation for the Army’s involvement in Electromagnetic Spectrum Operations was done in a seminar on Electromagnetic Spectrum and National Security organized in October 2020, the statement noted and added that since then an impetus had been given to the Army’s technology institutions for investing in AI, quantum and cyber.

THE GOVERNMENT SCHEMES AND INITIATIVES IN NEWS

6. RYTHU BANDHU SCHEME OF TELANGANA

THE CONTEXT: Ahead of the ongoing Rabi season, the Telangana government started crediting money into the bank accounts of eligible beneficiaries in the state.

THE EXPLANATION:

Under the Rythu Bandhu scheme, as many as 66.56 lakh farmers identified as beneficiaries, regardless of the extent of land owned by them, would receive financial assistance in 10 days.

With this, the state government would have disbursed Rs 50,405.63 crore to farmers under the scheme to date, a major landmark since its inception in May 2018.

What is Rythu Bandhu?

• Rythu Bandhu is a scheme under which the state government extends financial support to land-owning farmers at the beginning of the crop season through direct benefit transfer so that they can take care of the initial investment needs and do not fall into a debt trap.
• This in turn instills confidence in farmers, enhances productivity and income, and breaks the cycle of rural indebtedness.
• Each farmer gets Rs 5,000 per acre per crop season without any ceiling on the number of acres held. So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government. The grant helps them cover the expenses on input requirements such as seeds, fertilizers, pesticides, and labour.

How does it compare with the PM-KISAN scheme?

The state government has often said that the Centre’s PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) scheme is a “copy” of Rythu Bandhu. The Telangana government further claims that its own scheme is much better than PM-KISAN.

What about landless farmers?

• The Rythu Bandhu scheme has also come in from criticism from several quarters, with one of the major ones being that it ignores the plight of landless or tenant farmers.
• Farmer bodies have been demanding that the state government should extend the agriculture assistance to tenant farmers as well. They have pointed out that those who work on lands taken on lease from landowners also need government assistance at the beginning of a crop season.

PLACES IN NEWS

7. PORT OF LATAKIA

THE CONTEXT: An Israeli airstrike hit a shipment of Iranian weapons in the Syrian port of Latakia on 7th December 2021.

THE EXPLANATION:

Port of Latakia:

• The Port of Latakia is a seaport, located on the Mediterranean Sea in the city of Latakia.
• Established in 1950, it has since served as Syria’s main seaport.

Significance:

• The repeated strikes are a flagrant violation of Syria’s sovereignty. Israel, which has hardly upheld international norms and laws when it comes to its security policies, is setting another bad precedent.
• Syria, devastated by the civil war, is emerging as a new front in the Israel-Iran tussle. In recent years, Israel has reportedly carried out sabotage activities inside Iran and assassinated Iranian nuclear scientists. Iran, in return, has attacked Israel-linked vessels in the Gulf and Mediterranean waters and enhanced supplies to Shia rebel groups in the region.
• Iran is preparing to take control of Syria’s main commercial port, advancing its plans to secure a trade route from Tehran to the Mediterranean and establishing a significant foothold on Israel’s doorstep.
• Russia, whose primary focus in Syria is on the survival of the Assad regime and the protection of its own troops and assets deployed there, has largely stayed away from the Iran-Israel cold war. This gives Israel a free hand in Syria to target the Iranian and Hezbollah shipments.

Major ports in Syria: 

THE PRELIMS PRACTICE QUESTION

1. Frame a law based on the Hague Convention READ MORE
2. Lockdown no solution: Covid cases rising, India must take realistic steps READ MORE
3. FCRA non-renewal lacked finesse, dignity and respect READ MORE
4. A Dangerous Move: Linking voter ID and Aadhar READ MORE

1. Keep caste bias out of the classroom READ MORE
2. Prevention is better than cure: There are several compelling reasons for extending outpatient health care coverage READ MORE

1. Disaster damage: 2021 sixth year with insured loss bill over $100 billion READ MORE
2. Energy consumption, related emissions expected to increase through 2050: IEA READ MORE
3. Is UN Security Council inept in resolving climate change? READ MORE

1. Ethical Dilemmas and Unethical Dispensation: The Story of Indian Football in 2021 READ MORE
2. The Moral Convergence of the Real and the Ideal READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. North Eastern Region District SDG Index and Dashboard 2021-22 READ MORE
2. Atal Innovation Mission, NITI Aayog releases ‘Innovations For You’ & ‘The Ingenious Tinkerers’ READ MORE
3. MoD notifies list of 2500 subsystems barred from imports READ MORE
4. Explained: Rythu Bandhu, Telangana govt’s DBT scheme for farmers’ assistance READ MORE
5. 7 IITs in top 10 of govt’s Atal rankings for innovation, IIT Madras is No.1 READ MORE
6. Covid fight: Telangana 1st large state to achieve 100% first-dose vaccination READ MORE

Main Exam  

GS Paper- 1

1. Keep caste bias out of the classroom READ MORE

GS Paper- 1

POLITY AND GOVERNANCE

1. Frame a law based on the Hague Convention READ MORE
2. Lockdown no solution: Covid cases rising, India must take realistic steps READ MORE
3. FCRA non-renewal lacked finesse, dignity and respect READ MORE
4. A Dangerous Move: Linking voter ID and Aadhar READ MORE

SOCIAL ISSUES AND SOCIAL JUSTICE

1. Prevention is better than cure: There are several compelling reasons for extending outpatient health care coverage READ MORE

INTERNATIONAL ISSUES

1. Far from over: Israel is again violating international norms and laws with repeated strikes against Syria READ MORE

GS Paper- 1

ECONOMIC DEVELOPMENT

1. Vagaries of inflation: Time to tame it? READ MORE
2. India’s hopes and dynasties: The country needs greater social harmony to accelerate economic development READ MORE
3. Market-induced Global Inequalities: Excessive dependence on markets can result in even greater inequality and warped outcomes. READ MORE

ENVIRONMENT AND ECOLOGY

1. Disaster damage: 2021 sixth year with insured loss bill over $100 billion READ MORE
2. Energy consumption, related emissions expected to increase through 2050: IEA READ MORE
3. Is UN Security Council inept in resolving climate change? READ MORE

SECURITY

1. Why AFSPA exists READ MORE
2. AFSPA: The Misuse of Power READ MORE

GS Paper- 1

ETHICS EXAMPLES AND CASE STUDY

1. Ethical Dilemmas and Unethical Dispensation: The Story of Indian Football in 2021 READ MORE
2. The Moral Convergence of the Real and the Ideal READ MORE

Questions for the MAIN exam

1. ‘To address the issue of inequality we need to focus on equality of opportunity for better education and employment for the less privileged’. Comment.
2. ‘Excessive dependence on markets can result in even greater inequality and warped outcomes’. Do you agree with this view? Justify your view.

QUOTATIONS AND CAPTIONS

• It is health that is real wealth and not pieces of gold and silver.
• Excessive dependence on markets can result in even greater inequality and warped outcomes.
• The implementation of the AFSPA suggests that it deserves to be completely rewritten or scrapped; there is no third alternative.
• For Syria to see relative peace, there has to be a dial-down in tensions between Israel and Iran. A good beginning point would be the revival of the nuclear deal.
• AFSPA allows soldiers to carry out military operations which would otherwise, in the absence of any legal mandate, be legally and morally questionable.
• Since India is not a signatory to the Hague Convention, any case related to child custody is decided by the Indian courts on merit, taking into account the principles of comity of courts, and the principles of best interest and welfare of the child.
• Authorities must stop caste from vitiating interactions in the classroom, and sullying the education of young people. India made the constitutional promise of a dignified life to its most underprivileged castes, and is bound to fulfil it.
• Caste is ubiquitous in India.
• The double-digit inflation is due to the rise in prices of mineral oils, basic metals, crude petroleum and natural gas, chemicals, food products etc.
• As fiscal space gets limited in poor countries, governmental transfers must target the worst affected sections that cannot take the battering anymore.
• Despite the paucity of political alternatives, as we Indians enter another new year, we need to speak up more about social injustice and hopefully thus promote improved equality of opportunity for better education and employment for the less privileged.
• It is unfortunate enough that the Government of India has, without any effective parliamentary oversight or discussion, brought in this crucial legislation that could have a major impact on electoral outcomes.

50-WORD TALK

• Science has progressed rapidly since the onset of the pandemic, giving us new insights into the virus and its behaviour, and new tools such as testing kits and vaccines. We still need India-specific studies on various counts. In addition, pandemic management has a lot to do with disciplines beyond medical research.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

THE CONTEXT: Along with QUAD members, India, in December 2021, India conducted a 2+2 talk with one of its most strategically important partner nations, Russia. Russia will join the other countries where India holds a 2+2 ministerial dialogue. This first face-to-face bilateral meeting of the Russian President with any country since the onset of the pandemic signifies that the long-standing relations between the two are still as strong as ever.

OUTCOMES OF THE MEETING

The meeting saw the signing of 28 agreements across sectors from defense to energy to space exploration, science, and technology, heavy engineering, to trade and investment. However, the anticipated ‘Reciprocal Exchange of Logistical Support’ (RELOS) could not conclude in the meeting.

Major pacts: 

MILITARY PACTS: The two sides signed the ‘Agreement on Program of the Military-Technical Cooperation from 2021-2031’. This 10-year Defence Cooperation Program outlines the ongoing defense cooperation and possible future cooperation between the two countries. Such agreements are being signed since 1994. The long-awaited ‘A-203 assault rifles deal’ was inked at the end of bilateral talks between Defence Minister and his Russian counterpart Sergey Shoigu, paving the way to produce over six lakh rifles Amethi.

S-400 MISSILES DEAL ON AUKUS AND INDO-PACIFIC: Regarding the threats of US sanctions on procurement of S-400 missiles, the Indian foreign secretary said that India follows an independent foreign policy, and decisions are not taken in light of others. On the issue of AUKUS and the Indo-Pacific, the Russian minister debunked these new formats calling them “non-inclusive” and violative of international norms.

ON REGIONAL SECURITY: India confirmed that issues such as Chinese incursions in Ladakh and the situation in Ukraine did come up during the conversations between India and Russia. The leadership also discussed the evolving situation in Afghanistan, especially the security situation and its implications in the region, the current political situation, issues related to terrorism, radicalization and drug trafficking, etc.

ON TERRORISM: The joint statement mentioned India’s concerns of terror networks like Pak-based terror groups like the Lashkar-e-Taiba (LeT) finding space in Afghanistan. The leaders emphasized that Afghanistan’s territory should not be used for sheltering, training, planning, or financing any terrorist groups including ISIS, Al Qaeda, LeT, etc. The Russian side has invited the Indian side to Moscow for the next round of 2+2 dialogue to be held in 2022. India has accepted the invitation. The two sides also signed a protocol to allot land to set up the Indian Consulate General in the city of Vladivostok.

A SNAPSHOT OF INDO-RUSSIA RELATIONS

DIPLOMATIC TIES

• BRICS; Shanghai Cooperation Organisation (SCO)
• Indian Ocean Rim Association: India helped the induction of Russia
• UNSC conference on maritime: Russia displayed its proximity to India

INDIA-RUSSIA ANNUAL SUMMIT

• Highest institutionalized dialogue mechanism in the strategic partnership between India and Russia
• The latest summit is an institution of a new “two plus two” mechanism

RECENT COOPERATION IN DEFENCE

• 65% of Indian armed forces equipment is of Russian origin
• India procured the S-400 Triumf Missile from Russia

BACKGROUND OF NEW DEVELOPMENTS IN INDO-RUSSIA RELATIONS: THE CHANGING GEOPOLITICS

Asia Rising: The world has changed drastically in the last three decades. The Soviet Union collapsed, leaving Russia geopolitically weakened. China has risen dramatically as the effective number two global power and the US power has relatively declined, but it still retains its pre-eminence. The global political and economic center of gravity is shifting from the West to the Asian region.

Geopolitical realignments: Russia-US ties and US-China ties have deteriorated very sharply in recent times as the US sees both these powers as adversaries. Russia and China have forged an increasingly stronger strategic partnership (Russia’s “Pivot to the East”), especially after US sanctions on Russia from 2014 (Crimea Crisis). Russia’s relationship with Pakistan has also seen considerable change in the last five years. At the same time, India-US ties have been transformed, with the US becoming India’s leading partner in many ways, including a remarkable growth in defense ties.

Border tensions: No issue affected the Indo-Russian relationship as much as the border tensions between India and China. The Chinese aggression in eastern Ladakh brought India-China relations to an inflection point. It has driven New Delhi to shed past hesitations and actively pursue more hard-nosed policies to protect its national interests.

Covid-19 Pandemic: Changing geopolitical equations are greatly accelerated by the Covid-19 pandemic. The acceleration of the US-China rivalry due to the pandemic has made the bipolar dynamic the pivot around the new world order. India and Russia are both important players in their own right, but neither will occupy the top two positions in the world order. India and Russia remain supporters of multipolar world order. However, their foreign policy choices will inevitably be affected by the way their respective relations with the US and China have evolved.

Afghanistan issue: The exit of US security forces has posed a new challenge before India and Russia to fill the vacuum of a stable power center in the Taliban’s presence.

2+2 DIALOGUE:

• The 2+2 dialogue is held between the foreign and defense ministers of two countries and is generally seen to be aimed at creating a mechanism under which the bilateral relationship takes a decisive strategic turn with greater integration of defense, security and intelligence apparatus.
• On the lines of 2+2 dialogue with the United States, India and Russia have decided to establish dialogue on the same pattern, to add further momentum to the strategic partnership between the two countries. India held its first 2+2 dialogue with the US in September 2018.
• The foreign minister and defense ministers of both countries will meet to review the cooperation between the two countries and discuss the pending defense projects and matters of strategic interests, including the ongoing situation in Afghanistan.

REASONS FOR 2+2 TALKS WITH RUSSIA: IN THE PRIME INTERESTS OF INDIAN MAINLAND

While India and Russia have shared a strategic relationship since October 2000, which later got upgraded to ‘Special and Privileged Strategic Partnership’ in December 2010, it is only now that both countries are having their first 2+2 format dialogue even as the bilateral ties are facing a number of troubles.

The traditional build-up of Indo-Russia relations:

• Relations with Russia are a key pillar of India’s foreign policy, and Russia has been a long-standing time-tested partner of India. The historical character of the bilateral relationship binds both nations together.
• Both countries signed the “Declaration on the India-Russia Strategic Partnership” in October 2000.
• Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics, defense, civil nuclear energy, anti-terrorism cooperation, and space.
• Russia also reaffirmed its “unwavering support” to India for a permanent seat in an expanded UN Security Council.
• Russia’s medical aid to India in the context of a new COVID-19 wave and Sputnik V supplies provided a positive background for the cooperation going forward.
• The deterioration of Afghanistan’s situation, particularly the Kabul takeover by the Taliban, also forced India and Russia to band together.
• The supply of the S-400 surface-to-air missile system, which signifies more than just advanced military cooperation between the two countries. Such impactful pacts definitely called for greater cooperation.
• 25% of Russia’s defense export to India and in 2018, India- Russia defense trade amounted to $ 15 billion.
• There is a pile-up of other deals in defense and energy that have been at a protracted stage and now await a handshake between both nations to move forward (for example, the Kudankulam nuclear power plant).
• The 2+2 format of talks is an effective way to promote security cooperation. Recently, because China is using many types of methods including military, diplomacy, and economy to expand its influence. Therefore, diplomacy, including economic policy and military, should be coordinated to deal with China. Therefore, 2+2 is a more effective way to deal with the problem of China.
• India and Russia have identified several new areas of cooperation. These range from deep-sea exploration to building knowledge-based economies based on science and technology, innovation, robotics, and artificial intelligence, focussing on infrastructure, skill development, agriculture, shipbuilding, railways, aviation, and greater connectivity, especially people-to-people contacts.

THE WAY FORWARD

• As India develops ties with other like-minded powers to deal with the rise of China, it must also strengthen its special, privileged strategic partnership with Russia. The former superpower is an important partner in its Act East policy and a more balanced Russia-China relationship is in its interests.
• High-level engagement is particularly important in the India-Russia relationship as it remains driven by top-level interaction. Efforts should be to intensify contacts and diversify areas of cooperation with Russia.
• Apart from traditional cooperation areas, new economic engagement sectors are likely to emerge, mining, agro-industrial, and high technology, including robotics, nanotech, and biotech. India’s footprint in the Russian Far East and in the Arctic is set to expand. Connectivity projects may get a boost too.
• India should pursue and facilitate Russia’s engagement in the Indo-Pacific. Russia may not use the term Indo-Pacific for some more time, but its active engagement, irrespective of motive, in the region would be beneficial to India and contribute to making the Indo-Pacific “free and inclusive”.
• New Delhi has been consistent in promoting links between the Indo-Pacific and the Russian Far East. The willingness of India and Russia to promote regional cooperation is also visible in proposals for joint economic projects in the Far East and the Chennai-Vladivostok maritime trade route.

THE CONCLUSION: India and Russia share deep-rooted ties dating back to the Soviet era. Cooperation in trade, defense, and space, and significant investments in each other’s economies, continued even after the fall of the Soviet Union. Holding the 2+2 talks with Russia was much needed. This gives out a strong message to the world that India sees everyone to be on the same level. Having a 2+2 with Russia also means that India is “not in anyone’s camp” and that bilateral ties between Moscow and New Delhi are “traditional and comprehensive”. This is visible messaging. And this will also show that the defense to defense relationship between both countries is robust.

[WpProQuiz 125]

INDIAN ECONOMY

1. REPORT ON TREND AND PROGRESS OF BANKING IN INDIA 2020-21: RBI

THE CONTEXT: According to the report, Report on Trend and Progress of Banking in India 2020-21”, published by the RBI, which states that the banking sector managed to improve asset quality during the Covid year with the ratio of gross non-performing assets to advances declining from 8.2 per cent at March-end 2020 to 7.3 per cent at March-end 2021 — and further to 6.9 per cent at September-end 2021.

THE EXPLANATION:

• Also, the report says, the loan write-offs were the predominant recourse for lowering gross NPAs in 2020-21. This improvement was also driven by lower slippages, partly due to the asset classification standstill.
• In absolute terms, gross NPAs declined to Rs 8,37,771 crore in March 2021 from Rs 8,99,803 crore in March 2020. NPAs worth Rs 4 lakh crore were added during the year while bad loans of Rs 2.08 lakh crore were written off by banks. Of the total NPAs, Rs 6.16 lakh crore in bad loans were accounted for by public sector banks.
• The ratio of gross NPAs to advances indicates the proportion of loans out of the total lending that has not been repaid within the due period. Banks normally write off a non-performing asset when all recovery measures are exhausted and chances of recovery are remote.
• In April 2020, when Covid hit the economy, the RBI decided to provide relief to standard bank accounts availing a loan moratorium between March 1 and May 31 that year. The 90-day NPA norm excluded the moratorium period for such accounts. The RBI provided a standstill on asset classification for standard bank accounts, implying these couldn’t be classified as bad assets after the stipulated 90-day period.
• The report highlights, that during 2020-21, the consolidated balance sheet of banks expanded in size, notwithstanding the pandemic and the resultant contraction in economic activity. “In 2021-22 so far, nascent signs of recovery are visible in credit growth. Deposits grew by 10.1 per cent at end-September 2021 as compared with 11.0 per cent in 2020.
• The RBI said the share of large borrowable accounts (exposure of Rs 5 crore or more) in total advances declined to 51 per cent at end-March 2021 from 54.2 per cent a year ago. Their contribution to total NPAs also declined in tandem from 75.4 per cent to 66.2 per cent during the same period.
• The consolidated balance sheet of NBFCs expanded during 2020-21, driven by credit and investments of non-deposit taking systemically important NBFCs (NBFCs-ND-SI). Their asset quality and capital buffers also improved.

 LOAN RECOVERY VIA LOK ADALATS, IBC FALLS IN FY21

• According to the report, the banks reported 4,071 frauds involving Rs 36,342 crore during the six-month period ended September 2021 as against 3,499 frauds involving Rs 64,261 crore in the same period of 2020.
• Loan recovery through various channels, most notably Lok Adalats, witnessed a sizeable decline in the cases referred for resolution during 2020-21.
• While 20.35 lakh cases were reported in FY21 involving Rs 4.56 lakh crore, only Rs 64,228 crore was recovered. In 2019-20, 61.27 lakh cases involving Rs 6.94 lakh crore were reported, with Rs 1.52 lakh crore of loans recovered.
• Even though initiation of fresh insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) of India was suspended for a year till March 2021 and Covid-19 related debt was excluded from the definition of default, it constituted one of the major modes of recoveries in terms of amount recovered.
• In the year 2020, out of Rs 2,24,935 crore referred, only Rs 1,04,117 crore was recovered.
• Recoveries through Debt Recovery Tribunals (DRTs) were lower at Rs 8,113 crore, as against Rs 9,986 crore in the year 2020, and at Rs 27,686 crore through SARFAESI Act, against Rs 34,283 crore.
• Allowing pre-pack resolution window for MSMEs is expected to assuage the mounting pressure of pending cases before NCLTs, reduce haircuts and improve declining recovery rates.

Trends on Banking frauds

• There was a marked increase in frauds related to private banks, both in terms of number as well as the amount involved. In the first half of 2021-22, private banks accounted for more than half of the number of reported fraud cases.
• However, in value terms, the share of PSU banks was higher, indicating predominance of high value frauds. While the major share of loan-related cases pertained to PSU banks, private banks accounted for a majority of card/ internet and cash-related cases.

Value Addition:

What is the difference between Loan Waiver and Loan Write-offs?

• The major difference between “Write off” & “Waive off” Loan is that Loan Waive-off is something where the loan-taker is released from the burden of paying back the loan amount, while in the case of Loan Write-off; the financial institute still hopes to recover the loan amount from the person who not repaid it back.
• The decision of waiving off a loan is taken by the Government under certain conditions while Loan Write-off is carried out by the banks to keep a clear record of the unrecovered loan amount in their balance sheets.

 NPA Classification

About Insolvency and Bankruptcy Code (IBC)

• The IBC, 2016 is the bankruptcy law of India that seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
• It is a one-stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement.
• The code aims to protect the interests of small investors and make the process of doing business less cumbersome.

What is Lok Adalat?

• It is one of the components of the Alternative Dispute Resolution (ADR) system and delivers informal, cheap and expeditious justice to the common people.
• The first Lok Adalat camp was organised in Gujarat in 1982 as a voluntary and conciliatory agency without any statutory backing for its decisions.
• In view of its growing popularity over time, it was given statutory status under the Legal Services Authorities Act, 1987. The Act makes the provisions relating to the organisation and functioning of the Lok Adalats.

THE ENVIRONMENT AND ECOLOGY

2. BIHAR GOVERNMENT PLANS TO STERILISE NILGAI’S

THE CONTEXT: The Bihar forest department officials, caught six nilgais from the premises of Bihta Airport Station near Patna and sterilised them. They were taken to Valmiki Tiger Reserve in the state’s West Champaran district.

THE EXPLANATION:

• According to the Forest officials that they will not cull the Blue Bull, locally known as the nilgai or ghurparas, anymore. It will, instead, sterilise them to control their increasing population in the state.
• The state government will sterilise 5,000 nilgais in 2022. “All district forest officers have been asked to do so in their respective jurisdiction. Sterlising Nilgais is easier and eco-friendly. This will not harm them and provide much-needed relief to farmers”.
• The step was the result of a December 1, 2015, notification by the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) that declared the nilgai and wild boar vermin in some districts of Bihar.

What is the Issue?

• Farmers in flood-prone north Bihar districts to drought-prone south Bihar districts have been troubled with nilgais, which regularly forage into farmland in search of food and damage crops.
• Farmers Baban Mahto and Ramji Singh Buxar districts said the animal has been destroying their wheat, mustard, seed and potato crops since early December of 2021. Their numbers have increased in the last two-three years.

About Nilgai:

• The Nilgai (Boselaphus tragocamelus) is one of the largest species of Asian antelope native to the Indian subcontinent. The name ‘nilgai’ translates to ‘blue cow’.
• Major populations of the Nilgai are found in India, Nepal and Pakistan. It is found in large numbers across northern India.
• Nilgai are herbivores feeding on grass and herbs. Nilgai are better adapted to interference from livestock regarding forage competition as they can reach high branches and do not primarily depend on ground vegetation.
• The preferable habitat of a nilgai is the one replete with short bushes with scattered trees and grassy plains. They are common in agricultural lands as well.

Conservation Status:

• IUCN status: Least Conservation
• Wildlife Protection Act of 1972: Schedule III

 What is Vermin?

Vermin means wild mammals and birds which are harmful to crops, farm animals or which carry disease. In India, wild animals can be declared as vermin if they have become (i) dangerous to human life or property (including standing crops on any land). (ii) become disabled or diseased as to be beyond recovery.

How are they declared?

• Wildlife laws divide species into ‘schedules’ ranked from I to V. Schedule I members are the best protected, in theory, with severe punishments meted out to those who hunt them. Wild boars, nilgai and rhesus monkeys are Schedule II and III members — also protected but can be hunted under specific conditions. Crows and fruit bat fall in Schedule 5, the vermin category.
• Section 11(1)a of the Wildlife Protection Act (WPA) authorizes chief wildlife warden to permit hunting of any problem wild animal only if it cannot be captured, tranquillized or translocated.
• For wild animals in Schedule II, III or IV, chief wildlife warden or authorized officers can permit their hunting in a specified area if they have become dangerous to humans or property (including standing crops on any land).
• Section 62 of Act empowers Centre to declare wild animals other than Schedule I & II to be vermin for specified area and period.

THE SCIENCE AND TECHNOLOGY

3. CHINA LAUNCHES MINERAL SURVEY AND SCIENCE OUTREACH SATELLITES

THE CONTEXT: China launched the Ziyuan 1 (02E) Earth resources observation satellite and a small amateur radio satellite, marking the country’s 53rd orbital launch of the year.

THE EXPLANATION:

• China has deployed a new Earth resources observation satellite via its Chang Zheng 4C rocket. The Ziyuan-1 02E satellite, along with an amateur radio CubeSat, lifted off from the Taiyuan Satellite Launch Center.
• Ziyuan (ZY), meaning Resource, is a series of remote-sensing satellites which China uses to acquire high-resolution images that can be used for surveying Earth resources, disaster management, and ecological and land use monitoring.
• The first Ziyuan satellite, Ziyuan-1 01, was launched in 1999 in a partnership between China and the Brazilian national space agency, INPE. Six of the nine Ziyuan satellites launched to date have been part of the China-Brazil Earth Resources Satellite (CBERS) program, with the other three – including Ziyuan-1 02E – being solely Chinese-operated. Three more all-Chinese Ziyuan-3 satellites have also been launched, while the designation Ziyuan-2 was applied to a trio of military reconnaissance satellites deployed in the early 2000s, which are not part of the civilian Ziyuan series.
• Ziyuan-1 02E is believed to be similar in design to the Ziyuan-1 02D satellite launched in September 2019. It carries the same two imaging payloads: a high-resolution visible and near-infrared camera and a hyperspectral imager, as well as a new long-wave infrared camera.
• The high-resolution camera will be able to produce images with resolutions of up to five meters when operating in panchromatic mode. When operating in multispectral mode, it can produce images across three bands with a resolution of up to 10 meters. The hyperspectral payload can image across 166 spectral bands.

4. LOG4J VULNERABILITY

THE CONTEXT: A new vulnerability named Log4 Shell is being touted as one of the worst cybersecurity flaws to have been discovered.

THE EXPLANATION:

• The vulnerability is dubbed Log4 Shell and is officially CVE-2021-44228.
• CVE number is the unique number given to each vulnerability discovered across the world).
• It is based on an open-source logging library used in most applications by enterprises and even government agencies.
• The exploits for this vulnerability are already being tested by hackers and it grants them access to an application, and could potentially let them run malicious software on a device or servers.
• The problem impacts Log4j 2 versions which is a very common logging library used by applications across the world.
• Logging lets developers see all the activity of an application.

Concerns:

• Cryptocurrency Mining: Most of the attacks they have observed appear to focus on the use of cryptocurrency mining at the expense of the victims. However, new variations of the original exploit are being introduced rapidly.
• Successful exploitation of this vulnerability could lead to disclosure of sensitive information, addition or modification of data, or Denial of Service (DoS).
• Global: The Australia-New Zealand (ANZ) area was the most impacted region with 46% of corporate networks facing an attempted exploit.
• While North America was the least impacted with 36.4% of organizations facing such an attempt.
• India: About 41% of corporate networks in India have already faced an attempted exploit.
• Indian companies are not more vulnerable than their western counterparts because they use Java-based applications.
• Indian companies are at high risk because of their weak security posture, especially the smaller companies that may not have the know-how or resources to detect and fix the issue quickly.
• In other countries such as China, some of the telcos such as China Unicom had started 5G trials as early as 2018, and have since rolled out the commercial services for users.

THE PRELIMS PRACTICE QUESTION

Q1. The term ‘ACE2’ is talked about in the context of

a) genes introduced in genetically modified plants.

b) developments of India’s own satellite navigation system

c) radio collars for wildlife tracking

d) spread of viral diseases

ANSWER FOR 28^TH DECEMBER 2021

ANSWER: D

EXPLANATION:

• Shah Nawaz Khan, Prem Kumar Sehgal and Gurubaksh Singh Dhillon were officers of Indian National Army. Their whose was held in 1945 at the Red Fort in Delhi.

[WpProQuiz 124]

1. Desmond Tutu, the conscience-keeper READ MORE
2. Falling short: Perpetrators of violence in the nameof religion must be brought to justice READ MORE
3. Living with the enemy: The pandemic period can be an opportunity for us to change our work template and ethics READ MORE

1. Fight hard to save legacy green areas READ MORE
2. Ken-Betwa river interlinking: Core forest area of Panna tiger reserve will come under water, warns study READ MORE

1. Why Centre wants to raise marriage age of women READ MORE
2. What NFHS-5 data reveals about gender in India READ MORE

1. Judiciary is Indian democracy’s only flicker of hope READ MORE
2. Step Motherly? Is the denial of FCRA renewal for the Mother Teresa founded NGO at all justified? READ MORE
3. The ‘three pillars of democracy’ is a lie READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. PM inaugurates Bina (MP)-Panki (UP) Multiproduct pipeline project READ MORE
2. RBI flags banks’ capital buffer needs READ MORE
3. Loan recovery via Lok Adalats, IBC falls in FY21; banks report fewer frauds READ MORE
4. Write-offs in Covid year helped banks reduce bad loans: RBI READ MORE
5. Bihar plans to sterilise, not cull, nilgais READ MORE
6. China launches mineral survey and science outreach satellites READ MORE
7. India to chair UNSC’s counter-terror panel READ MORE

Main Exam    

GS Paper- 1

1. Why Centre wants to raise marriage age of women READ MORE
2. What NFHS-5 data reveals about gender in India READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Judiciary is Indian democracy’s only flicker of hope READ MORE
2. Step Motherly? Is the denial of FCRA renewal for the Mother Teresa founded NGO at all justified? READ MORE
3. The ‘three pillars of democracy’ is a lie READ MORE

SOCIAL ISSUES AND SOCIAL JUSTICE

1. Prevention is better than cure: There are several compelling reasons for extending outpatient health care coverage READ MORE

INTERNATIONAL ISSUES

1. India is dusting off 30 yrs of Central Asia neglect. Delhi is ready with a message for China READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. An opportunity for Digital India READ MORE
2. India can be a winner in semiconductors READ MORE
3. Digital financial transactions need a safety net READ MORE
4. India is key to world economy’s recovery READ MORE
5. Strengthening IBC: Proposed changes will reduce delays READ MORE

ENVIRONMENT AND ECOLOGY

1. Fight hard to save legacy green areas READ MORE
2. Ken-Betwa river interlinking: Core forest area of Panna tiger reserve will come under water, warns study READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Desmond Tutu, the conscience-keeper READ MORE
2. Falling short: Perpetrators of violence in the nameof religion must be brought to justice READ MORE
3. Living with the enemy: The pandemic period can be an opportunity for us to change our work template and ethics READ MORE

Questions for the MAIN exam

1. The trajectory of national security discourse in India is witnessing a shift from its military fascination to a holistic approach in the light of contemporary realities. Explain
2. An integrated approach to national security policymaking in India faces challenges from multiple fronts. Comment.

QUOTATIONS AND CAPTIONS

• To know a person’s religion, we need not listen to his profession of faith but must find his brand of intolerance.
• Countries need leaders in government, leaders in the opposition. But they also need social philosophers, conscience-keepers who do not seek popularity and are not afraid of unpopularity.
• The Arab Gulf is poised to become an important player once again in a Taliban-ruled Afghanistan.
• Despite sporadic bursts of communal violence, India, unlike its neighbours in South Asia, has survived and thrived as a multicultural and multi-religious nation till date.
• Made in India digital tools can help other emerging economies deal with economic, governance challenges.
• Digital public goods spread speed, transparency, ease and productivity across the individual-government-market ecosystem and enhance inclusivity, equity and development at scale.
• Be it the destruction of the green cover of the Himalayas, the mangroves of the Sundarbans and Mumbai, the wetlands of Chennai and Bengaluru, the assault on our green resources has been relentless.
• The grammar of secularism was not adopted to eschew religion; it was a pathway to peace. Today, we have shunned this principle, favouring instead a competitive religious politics that co-exists with hate.
• India’s broad range of fiscal, monetary and health responses to the crisis are helping mitigate a longer-lasting adverse impact of the COVID-19 pandemic.
• The pandemic period can be an opportunity for us to change our work template and ethics.
• The need for quicker resolution of insolvencies cannot be overemphasised. It will make capital more efficient, improve credit culture, and help boost growth.

50-WORD TALK

• The sight of police crackdown on protesting doctors just as India braces for Omicron should have been avoided. The delay in allocating colleges to PG medical students and resolving the EWS issue in NEET shows colossal mishandling by the executive and the judiciary when doctors are already stretched beyond capacity.
• Union home ministry should make public the “adverse inputs” that led it to refuse renewal of Missionaries of Charity’s FCRA registration. Modi government’s action against NGOs getting foreign funds hasn’t looked transparent or fair. Adding Mother Teresa’s Christian charity to the list without explanation only gives it needless political colour.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

THE CONTEXT: Three decades ago, India embarked on a new economic journey when Manmohan Singh, then Finance Minister, placed the reform Bill and echoed Victor Hugo, “No power on earth can stop an idea whose time has come,” in Parliament. Since then, the crisis-hit economy has come a long way and marked its firm presence in the global platform. In this article, we will analyze India’s Journey in these three decades.

AN INTRODUCTION OF THE ECONOMIC REFORMS

• Economic reforms in India refer to the structural adjustments initiated in 1991 to liberalize the economy and accelerate its economic growth rate. The Narsimha Rao Government, in 1991, introduced economic reforms to restore internal and external confidence in the Indian economy.
• The reforms aimed at bringing in greater participation of the private sector in the growth process of the Indian economy. Policy changes were introduced with respect to industrial licensing, technology up-gradation, removal of restrictions on the private sector, foreign investments, and foreign trade.
• The reforms aimed to attain a high rate of economic growth, reduce the rate of inflation, reduce the current account deficit, and overcome the balance of payments crisis. The important features of the economic reforms were Liberalisation, Privatisation, and Globalisation, popularly known as LPG.

NEED FOR ECONOMIC REFORMS

The need for the introduction of the reforms was because of the following factors:

POOR PERFORMANCE OF THE INDUSTRIAL SECTOR: Before the introduction of economic reforms, the industrial sector suffered due to bureaucratic controls. The industries had to obtain several licenses and permissions for any undertaking activity such as setting up a new firm, starting a new product line, expanding an existing business, foreign investments, etc. Many public sector enterprises were incurring huge losses due to poor productivity.

The main objectives of the industrial policy introduced in 1991 were:

1. To unshackle the Indian industrial sector from the cobwebs of unscrupulous bureaucratic controls.
2. To introduce liberalization to integrate the Indian economy with the world economy.
3. To remove restrictions on foreign investments and relieve the entrepreneurs from the restrictions of the MRTP Act.
4. To shed the load of public enterprises that were incurring heavy losses.

ADVERSE BALANCE OF PAYMENTS: India faced a severe economic crisis during the end of the 1980s. India was unable to meet its international debt obligations and was pushed to a situation of near bankruptcy. The foreign exchange reserves were insufficient to pay the import bills. The Balance of Payments deficit could not be financed beyond a certain point.

Some of the factors responsible for the crisis were: 

1. The rising level of expenditure over revenue.
2. Heavy government borrowing.
3. Inefficient utilization of resources.
4. Excessive protection to domestic industries.
5. Inefficient management of public sector enterprises.
6. Lack of technological development and innovation
7. Lack of investments in research and development.

RISE IN FISCAL DEFICIT: This was mainly due to the increase in the non-developmental expenditure of the government. The government had to borrow a huge sum of money to finance the deficit and meet these debts interest obligations. The government was in a debt trap. Thus, there was a need to bring in reforms to reduce the non-developmental expenditure and to bring about a fiscal discipline.

INFLATION: Due to continuous borrowing by the government to meet its mounting expenditure, there was a rapid increase in the money supply. The government resorted to deficit financing wherein the RBI financed the borrowings by the Government of India by printing currency notes. This leads to a rise in the money supply. When the money supply increased, the demand for goods and services also rose, increasing their prices and causing an inflationary situation.

THE GULF WAR: The Gulf war during 1990-91 had a significant impact on the supply of oil. As a result, the price of oil shot up, increasing India’s foreign currency outlays. The Gulf crisis also affected the flow of foreign currency into India. The NRI deposits were moving out of India and remittances from Indians employed abroad were also affected during the war.

THE ECONOMIC REFORMS

The main objective of liberalization was to unshackle the industrial sector from the cobwebs of unnecessary bureaucratic controls. The main features of liberalization policy were

ABOLITION OF INDUSTRIAL LICENSING: The new industrial policy of 1991 abolished the industrial licensing for all the industries except for a selected 18 industries due to security and strategic concerns.

REMOVAL OF RESTRICTIONS: Other than those 18, all industries could set up and sell shares without any restrictions; they could expand their business and start a new product line without obtaining any license.

RELAXATION OF MRTP RESTRICTIONS: The Monopolies and Restrictive Trade Practices (MRTP) Act aimed at controlling monopoly practices to prevent concentration of economic power. The MRTP Act has now been replaced by the Competition Act, 2002, which came into effect in 2009. The Competition Act checks all anti-competitive practices and prohibits abuse of dominance. To protect consumer interest at large, it aims at promoting and sustaining competition in the market.

FOREIGN INVESTMENT: The reforms reduced several procedural bottlenecks for foreign investments. Approval was given for foreign direct investment up to 51 percent of the equity in high-priority industries.

FOREIGN TECHNOLOGY: Automatic approval was provided to Indian industries with respect to foreign technology agreements, especially in the case of high-priority industries. Permissions were not required for hiring foreign technicians and experts and for foreign testing of indigenously developed technologies.

GLOBALISATION – MEANING AND FEATURES

Globalization may be defined as the integration of the domestic economy with the world economy to facilitate the free movement of goods, services, people, ideas, technology, etc. It refers to the opening of the economy to international competition.

The major features of globalisation measures as undertaken in 1991 were:

Reduction of Trade Barriers: With the introduction of globalisation measures, trade barriers restrictions were reduced. It provided immense opportunities to Indian industries to expand their markets abroad and offered Indian consumers a wide variety of quality goods at competitive prices. The export-import policy announced for the period 1992-97 removed all restrictions on external trade and enhanced the export capabilities of the Indian industries.

Promotion of Foreign Direct Investment: Many Indian industries were opened to foreign direct investment. India became a favorable investment destination for foreign investors due to the low cost of production and availability of cheap labor resources. The government of India further initiated a series of measures to promote foreign technical collaborations in the case of high-priority industries and for the import of foreign technology. Foreign Investment Promotion Board (FIPB) was set up to facilitate foreign direct investments in India.

To Encourage Efficiency: Globalisation encouraged domestic industries to become more competitive and efficient to face competition at the global level. The domestic industries had to produce quality goods at low cost to compete with the foreign producers’ cheaper and superior quality goods.

Diffusion of Technology: An opportunity for India to have access to global technology and India could utilize the technologies of developed countries without many investments in research and development.

PRIVATISATION-MEANING AND FEATURES

Privatisation refers to the introduction of private ownership in public sector enterprises. The government holding in public sector enterprises was sold to increase private participation. Many public-sector units were incurring losses due to inefficiencies in management and lack of innovation and investments in research and development. Privatisation measures enabled modern technology, improved the quality of service, and led to efficient utilisation of resources.

Various privatisation measures introduced in India included:

1. Transfer of ownership of public sector units, either fully or partly, to private hands through denationalisation.
2. Transfer of control to the private sector through disinvestment policies.
3. Opening of areas that were exclusively reserved for the public sector.
4. Transfer of management to the private sector through franchising, contracting, and leasing.
5. Limiting the scope of the public sector.

The privatisation wave in India, which was a part of the economic reforms of 1991, increased the role of the private sector and restricted the public sector to priority areas which included:

1. Physical and social infrastructure
2. Mining and oil exploration
3. Manufacture of products that were of strategic importance and where security concerns were involved like in the case of manufacture of defense equipment, and
4. Investments in technologies that required huge outlay and where private sector investment was inadequate.

Privatisation measures were introduced in India as part of the economic reforms in 1991 for the following reasons:

To Reduce the Burden of the Government: Many public sector units were only functioning to protect the interests of the laborers. Privatisation offloaded this burden from the government and reduced the strain on resources.

To Promote Efficiency: Many public sector companies were also struggling due to inefficient management, lack of transparency, and corruptive practices. Privatisation measures got rid of these problems and enabled the public sector units to achieve optimum productivity.

To Enhance Investment Opportunities: Privatisation helped in reducing the inconsistencies in management and improved the economic status of many public sector units. This brought in good returns and attracted investments.

To Facilitate Growth of Infrastructure: Privatisation of industries led to the growth of the industrial sector on modern lines. The private enterprises, to provide competitive products and services, initiated and facilitated the improvement of the infrastructure.

To Reduce Unnecessary Bureaucratic Interventions: Privatisation reduced unnecessary government intervention in the management, thereby giving the private enterprises more autonomy in management and operations. This enhanced their efficiency and profitability.

SUCCESS AND FAILURE OF REFORMS: AN ANALYSIS

THE SUCCESS:

SIZE OF GDP AND GROWTH: From a GDP of $512.92 billion in 1991, India had grown to $2.70 trillion by 2020. Besides, the average annual growth rates in GDP, post the 1990s, have been around 6.25 percent against 4.18 percent for the three decades prior to the reforms.

RATE OF INFLATION: The average annual inflation rates in the post-reform period were significantly lower at around 5 percent and the gross fiscal deficit was below 4.80 percent of GDP. While curbing automatic monetization of deficits and strong monetary measures contributed to lower inflation, disinvestment via privatization and fiscal restraint in the form of lower subsidies arrested the deficits.

IMPORT-EXPORT: On the external front, the reforms made a significant impact too. Firstly, India’s trade openness increased from a meager 13 percent in 1990-91 to 42 percent in 2020. The exports, driven by the devaluation of the rupee in 1991 and further depreciation in later years, have increased from $17.96 billion in 1990 to $324.43 billion in 2019.

FOREIGN INVESTMENT: Abolition of license-raj and curbing of excessive regulations saw rewards in terms of better foreign investment. From $236.69 million in 1991, the net FDI inflows stood at $50.61 billion in 2020. With more foreign companies entering India, domestic consumers benefited from healthy market competition. For Indian manufacturing, the foreign collaborations meant access to technology and, thereby, efficient production. Also, there has been a significant improvement in forex reserves, which are now sufficient to cover 15 months’ imports.

REDUCING POVERTY: The reforms had a telling impact on India’s socio-economic fabric. From about 45 percent of the population below the national poverty line in 1994, the rates fell to 21.9 percent in 2011. There have also been improvements in literacy rates, gross enrolments ratio, and life expectancy, among others.

AVERAGE MONTHLY PER CAPITA HOUSEHOLD CONSUMPTION EXPENDITURE: It was Rs 243.5 and Rs 370.3 in July-Dec 1991 and this stood at Rs 1,430 and Rs 2,629.7 from July 2011 to June-2012 for rural and urban areas.

FOREIGN EXCHANGE RESERVE: Increased $1.1 billion in 1991 to $642 billion in 2021.

PER CAPITA INCOME: Increased $300.10 to $2200.60 in 2020.

However, opening up the economy makes it susceptible to external shocks. Within a few years after the reforms, the first challenge for India came from its East Asian neighbors in 1997. In a span of three years, the world economy was hit by the dot-com bubble, and the third challenge came in the form of the global financial crisis in 2008. It was prudent economic policies and disciplined financial markets that helped the Indian economy to resist and recover quickly from all three crises.

THE FAILURES: 

INCONSISTENT PERFORMANCE: India’s growth rate and its progression as one of the leading developing economies of the world are inconsistent with the Human Development Index (131st rank in 2020), Global Hunger Index (94th position in 2020), Gender Inequality Index (122nd rank in 2018) and Environmental Performance Index (168th rank in 2020).

RICH-POOR DIVIDE: It has widened the gap between rich and poor. The World Bank estimates show that the Gini index, a measure of income inequality, had deteriorated marginally from 31.7 in 1993 to 35.7 in 2011. According to NSSO consumption surveys, while the bottom 20 percent of the population contributed to 9.20 percent of consumption expenditure in 1993-94, their contribution had declined to 8.10 percent in 2011-12. Further, the share of the top 20 percent of the population has fattened from 39.70 percent to 44.70 percent during the same time.

POVERTY RATE: As per the Tendulkar Committee estimations, India’s 21.92% of the population was living below the poverty line in 2011-12. However, as per the National Family Health Survey-4 (2015-16), the multi-dimensional poverty rate stood at 27.9%. The poverty rate, which was 45% in 1994, declined, especially during 2004-2011 when India implemented substantive anti-poverty measures and rights-based initiatives to uplift the poor. This has been affected by the pandemic due to loss of work and earnings and the people, especially informal and daily wage laborers, are pushed into the vicious cycle of poverty. A study conducted by the Azim Premji University (2021) finds that “230 million additional individuals slipped below the poverty line defined by the national floor minimum wage” and took away the anti-poverty efforts that were in place during the pandemic for the last 25 years.

UNEMPLOYMENT: The reduction in poverty rate during 2004-2012 was due to the employment shift from farm to non-farm, especially in the services sector. The construction sector absorbed many informal/unskilled labor resulting in the real wages enhancing the purchasing power of the people. On the other side, the number of jobs created during this period was very less, ie, 0.6% per year than the growth of the working-age population. According to the International Labour Organization’s ILOSTAT database, India’s unemployment rate in 2020 was the highest since 1991 with 7.11%.

MORTALITY RATE: Surely economic liberalisation should result in better care for our children, the country has made considerable progress on that front, with the under-five mortality rate coming down from 125.8 per thousand in 1990 to 47.7 per thousand in 2015. But neighbouring Bangladesh and Nepal, much poorer than India, have brought down their under-five mortality rates more than India.

SHARE OF MANUFACTURING IN GDP%: One would have expected that the New Industrial Policy would have been a pivotal moment for the manufacturing sector and India would soon take its place among the manufacturing powers of East Asia. Still, while, in 1989-90, the share of manufacturing in the gross domestic product was 16.4%, it reduced to 16.2% in 2015-16.

COMBINED FISCAL DEFICIT OF CENTRE AND STATES: One underlying reason for the crisis of 1991 was the indiscriminate rise in government borrowing in earlier years. It was only to be expected therefore that after the crisis, the government would do all it could to curb its fiscal deficit and that of the states. Unfortunately, that didn’t happen. By 2000-01, the combined fiscal deficit of the center plus the states, as a percentage of GDP, had risen beyond the 1991 level.

TAX TO GDP RATIO: One reason why government deficits remained high is that, despite robust economic growth, tax revenues weren’t buoyant. The central government’s gross tax revenues as a percentage of the gross domestic product have remained below the 1991-92 level.

DOES INDIA NEED ANOTHER REFORM?

Successive governments have built on LPG reforms, but a lot more needs to be done if India is to achieve its full potential. A look at the key areas that need urgent intervention to address long-standing issues to help the country achieve double-digit growth.

EDUCATION: Possibly the most pressing focus area given the urgency to leverage human resources. Total revamp from primary level to higher education with equal emphasis on skills. Outcome- and learning-based education so that only those eligible progress to the next level. Along with health, education should get much higher funding.

HEALTHCARE: Needs reorganization and more funding. Expensive out-of-pocket health spending major cause of poverty. Massive public healthcare supported by insurance for critical care is needed.

JUDICIAL REFORMS: Inadequate court capacity & judicial delays undermining the economy. More courts, better processes, and simpler laws to reduce caseload. (Vacancies of Judges- 38.70%) (Pending cases- 63,146 in SC, 56.43 lakh in High Courts and 3.71 Cr in Districts and Subordinate Courts)

TAX REFORMS: Direct tax reforms progressing as per template. GST needs a makeover; all items should be included.

POWER SECTOR: Unbridled populism has made power expensive, unreliable, and inadequate. State finances are in disarray in many cases due to power subsidies. Users must pay for power; DBT for those states want to support. Privatize discoms, enforce open access, continue focus on renewables.

INNOVATION: Unshackle the startup system totally. Provide funding missions for startups in innovation areas crucial to India. Encourage blockchain technology in payment systems.

UNIVERSAL BROADBAND: Reach broadband across the country, keep it affordable. Go for satellite broadband in remote areas.

EASE OF DOING BUSINESS: Much progress made, but the cost of doing business is still high. Multiple last-mile hurdles, particularly in the states. Massive review of policy, rules, and regulations to simplify business. Use technology for governance and nonintrusive oversight.

SOME OTHER TARGET AREAS: Comprehensive social security, which would also make labor reforms easier. Steps towards low carbon economy; continued emphasis on EVs and renewables. Further relaxation of foreign investment where possible. Massive privatisation to reduce state sector. Clear framework to bring back private investment in infrastructure. Framework for dispute resolution and enforceability of contracts.

THE WAY FORWARD: The journey of three decades of economic reforms has certainly transformed our economy from a slow and regulated to a fastened and liberalised path of growth. During this process, what was really missed out was the large workforce of the informal sector. This non-inclusive approach is one of the limitations of the trickle-down economic growth model and needs serious revision. The 1991 reforms have provided the required dynamism to the economy. However, it has fallen short in sustaining the pace of growth owing to structural and institutional deficits, including the model of development and centralised governance. 91% of the labor force participation working in the informal sector needs to be provided better avenues of employment by leveraging the inherent potentials of agriculture and allied sectors. In spite of the pandemic, the expenditure on the health sector is still low compared with our neighbors like Bangladesh and Sri Lanka, which are ahead of India in terms of human social and political (governance) reforms are imperative to achieve the goal of sustainable and equitable economic growth.

THE CONCLUSION: While Covid-19 has been a big blow, the economy was already showing signs of deteriorating growth even in periods preceding the pandemic. This would require immediate intervention to tackle the predicaments of unemployment, poverty, and other social issues. The pandemic has also raised concerns over existing health infrastructure and the future of education. The government must make higher investments in these sectors.

Just add to your knowledge

Disinvestment: This is one of the most important strategies adopted by the Government of India as a part of its privatisation measures. Disinvestment is an act by which the government sells its complete or a part of its holding in a public sector unit to the private sector. The disinvestment policies of the government also enable it to raise huge revenue to finance its fiscal deficit. About Us. 20,000 cores were raised through disinvestment in public sector units between the period of 1991-92 to 2001-02.

The funds raised through disinvestment are also used:

1. To shut down the industries declared sick by the Board of Industrial and Financial Reconstruction (BIFR) and settle their claims.
2. To restructure and modernize the public sector enterprises.
3. To settle the public debt. The disinvestment policies of the government, by bringing in private participation, improve the efficiency of public sector units by lowering their costs of production. It enables access to modern technology, thus, improving the quality of products and services. Disinvestment can be carried out through the public issue of equities to retail investors through Initial Public Offer (IPO). The Government of India, in its 2017 budget, has set a target of raising Rs. 72,500 core through disinvestment during the financial year 2017-18.

Questions:

1. Critically analyse India’s three-decade journey under the new economic policy. Do you think the reforms are failing at the social front? Analyse your view.
2. Analyse the success and failure of the Economic reforms of 1991. Do you think, in the wake of the Covid-19 pandemic, India needs a new economic policy?

THE INDIAN POLITY AND GOVERNANCE

1. FOURTH EDITION OF STATE HEALTH INDEX: 2019-20

THE CONTEXT: NITI Aayog released the fourth edition of the State Health Index for 2019–20. The report, titled “Healthy States, Progressive India”, ranks states and Union Territories on their year-on-year incremental performance in health outcomes as well as their overall status.

THE EXPLANATION:

• The report has been developed by NITI Aayog, with technical assistance from the World Bank, and in close consultation with the Ministry of Health and Family Welfare (MoHFW).
• Round IV of the report focuses on measuring and highlighting the overall performance and incremental improvement of states and UTs over the period 2018–19 to 2019–20.

What are the indicators?

• Health Index is a weighted composite score incorporating 24 indicators covering key aspects of health performance. Health Index comprises of select indicators in three domains:

1. Health Outcomes.
2. Governance and Information; and
3. Key Inputs and Processes.

• Each domain has been assigned weights based on its importance with higher score for outcome indicators.
• To ensure comparison among similar entities, the ranking is categorized as ‘Larger States’, ‘Smaller States’ and ‘Union Territories’.
• Among the ‘Larger States’, in terms of annual incremental performance, Uttar Pradesh, Assam and Telangana are the top three ranking states.

The Findings:

Among large states, Kerala and Tamil Nadu topped the list, and Telangana emerged strong on the third position in health outcomes and incremental performance. The state saw an improvement from the 4th position the last time — indicating that it has made strides in improving its health infrastructure by ensuring universal immunisation of children, setting up fully functional First Referral Units (FRUs) and all Primary Health Centres (PHCs) among others.

Among the ‘Larger States’, in terms of annual incremental performance, Uttar Pradesh, Assam and Telangana are the top three ranking states.

Among ‘Smaller States’, Mizoram and Meghalaya registered the maximum annual incremental progress.

Among UTs, Delhi, followed by Jammu and Kashmir, showed the best incremental performance.

Key Points:

• For a vast majority of the states and UTs, there has been a shift in the Overall Performance ranking from Base Year (2018-19) to Reference Year (2019-20)
• The gap in the Overall Performance between the best and the worst performing Larger State and UTs narrowed in the current round of the Health Index, while it increased for the Smaller States.
• Nearly half the states and UTs did not reach the halfway mark in the Composite Overall Index Score, and despite good performance, even the top-ranking states and UTs could benefit from further improvements.
• The incremental changes in Health Index Scores from Base Year (2018-19) to Reference Year (2019-20) varied significantly across states and UTs, with a vast majority of Larger States registering at least some improvement.

The Conclusion:

• The Health Index is a useful tool to measure and compare the Overall Performance and Incremental Performance across states and UTs over time and nudging the states and UTs to shift the focus from inputs and outputs to outcomes.
• The Health Index has strengthened the culture of use of data at the state/UT level to monitor performance and is contributing to the agenda of improving availability, quality and timeliness of data.

2. RIGHT TO BE FORGOTTEN

THE CONTEXT: In December 2021, the Centre told the Delhi High Court that the “right to be forgotten” is part of the fundamental right to privacy, but added it has no significant role to play in the matter. Petitions across courts have been seeking enforcement of this “right” — a legal principle that is not yet backed by statute in India.

THE EXPLANATION:

What is the right to be forgotten?

• It allows a person to seek deletion of private information from the Internet. The concept has found recognition in some jurisdictions abroad, particularly the European Union. While the right is not recognised by law in India, courts in recent months have held it to be an intrinsic part of the right to privacy.
• At least eight petitions are pending before Delhi High Court seeking removal of private information from the Internet, court records of previous convictions and proceedings, and news reports of past events. Only a few have been able to get that relief from courts so far.

Which countries have such laws?

• The EU in 2018 adopted the General Data Protection Regulation (GDPR), Article 17 of which provides for the right to erasure of certain categories of personal data — that which is considered no longer necessary, that for which consent has been withdrawn or processing of which has been objected to, personal data unlawfully processed, and data where there is a legal obligation for erasure.
• However, the regulations limit the right to erasure in certain circumstances, including for reasons of public interest in the area of public health, for archiving purposes “in the public interest, scientific or historical research purposes or statistical purposes in accordance” and for “establishment, exercise or defence of legal claims.”

What is the position in India?

In a brief reply in one of the petitions earlier this week, the Centre told the Delhi High Court that the right to privacy has been recognised as a fundamental right in the K S Puttaswamy judgment (2017) and that the ‘right to be forgotten’ is evolving in India. The government said the Personal Data Protection Bill (a Joint Parliamentary Committee’s report on which was tabled on December 2021), contains provisions to the doctrine of the ‘right to be forgotten’.

When can the right be exercised?

In the right to privacy judgment, the Supreme Court had clarified that the recognition of this right “does not mean that all aspects of earlier existence are to be obliterated, as some may have a social ramification”.

The SC explained: “If we were to recognise a similar right, it would only mean that an individual who is no longer desirous of his personal data to be processed or stored, should be able to remove it from the system where the personal data/information is no longer necessary, relevant, or is incorrect and serves no legitimate interest.”

The apex court asserted that this right cannot be exercised where the information or data is necessary for:

1. exercising the right of freedom of expression and information.
2. compliance with legal obligations.
3. the performance of a task carried out in public interest, or public health.
4. archiving purposes in the. public interest.
5. scientific or historical research purposes or statistical purposes; or
6. the establishment, exercise, or defence of legal claims.

CONCLUSION: Although the RTBF is a facet of the right to privacy, it has become very important in the digital age. The times when information is available at a click, the need to protect personal data becomes all the more important. Personal data such as related to matrimonial suits are of no relevance to the public. However, due to lack of proper legislation recognising this right people are subjected to harassment and loss of reputation. Therefore, legislation protecting this right is the need of the hour. Until then, the task is left to the judiciary which has to carefully tread its path between two fundamental rights- RTBF and freedom of expression.

THE INDIAN ECONOMY

3. TUSSLE OVER FCRA AND MISSIONARIES OF CHARITY (MoC)

THE CONTEXT: According to Union Home Ministry (MHA), the FCRA (Foreign Contribution Regulation Act) licence of Missionaries of Charity founded by Mother Teresa wasn’t renewed as some adverse inputs were received against it.

THE EXPLANATION:

• According to the 2020-21 annual financial returns filed by the MoC on December 13, 2021 it had received over ₹75 crore donation from 347 foreign individuals and 59 institutional donors. It had a balance of ₹27.3 crore in its FCRA account carried forward from the previous year and the total balance stood at ₹103.76 crore.
• The NGO registered in Kolkata has more than 250 bank accounts across the country to utilise the foreign funds. Some of the biggest donors are Missionaries of Charity in the U.S. and United Kingdom that contributed over ₹15 crore to MoC, India, for “primary health care, education assistance, treatment of leprosy patients” among others.
• The MoC in its statement clarified that “FCRA registration of Missionaries of Charity has neither been suspended nor cancelled. Further there is no freeze ordered by the Ministry of Home Affairs on any of our bank accounts”.
• The Foreign Contribution Regulation Act (FCRA) registration is mandatory for any NGO or association to receive foreign funds or donations.
• Mother Teresa had set up Missionaries of Charity, a Catholic religious congregation in 1950. She was awarded the Nobel Prize for Peace in 1979. She died on September 5, 1997, and was declared a saint by Pope Francis in September 2016.
• Registered associations can receive foreign contribution for social, educational, religious, economic and cultural purposes. Filing of annual returns, on the lines of Income Tax, is compulsory.

Value Addition:

Foreign Contribution (Regulation) Act:

• It is an act of Parliament enacted in 1976 and amended in 2010. It was to regulate foreign donations and to ensure that such contributions do not adversely affect internal security.
• Coverage: It is applicable to all associations, groups, and NGOs which intend to receive foreign donations.
• Registration: It is mandatory for all such NGOs to register themselves under the FCRA. The registration is initially valid for five years. Further, it can be renewed subsequently if they comply with all norms.
• Registered NGOs can receive foreign contributions for five purposes — social, educational, religious, economic, and cultural. There are 22,591 FCRA registered NGOs.

Foreign Contribution Regulation (Amendment) Rules 2020:

• New rules require any organization that wants to register itself under the FCRA to have existed for at least three years. Further, it should have spent a minimum of Rs. 15 lakh on its core activities during the last three financial years for the benefit of society.
• Office bearers of the NGOs seeking registration under the Foreign Contribution (Regulation) Act must submit a specific commitment letter from the donor. It should indicate the amount of foreign contribution and the purpose for which it is proposed to be given.
• Any NGO or person making an application for obtaining prior permission to receive foreign funds shall have an FCRA Account.

THE ENVIRONMENT AND ECOLOGY

4. AIR POLLUTION IN CENTRAL-WESTERN INDIA AND NORTH INDIA IN CONTRAST TO THE GENERAL TREND

THE CONTEXT: According to the study published in ‘Environmental Science and Pollution Research, by the Aryabhatta Research Institute of Observational Sciences (ARIES) showed that reduction of economic activities during the pandemic-related lockdown had resulted in decrease of air pollution in most parts of India, but satellite observations show that parts of central-western India and north India showed an increase in pollution in contrast to the general trend.

THE EXPLANATION:

• The satellite-based observation of toxic trace gases, — ozone, NO2, and carbon monoxide near the surface and in the free troposphere mostly showed reduction of the pollutants over India. However, over some regions like western – central India, some parts of Northern India, and Remote Himalaya, an increase of ozone and other toxic gases was observed. This could have aggravated respiratory health risks around those regions during the pandemic.
• Scientists have identified that regions in the central-western part of India and north India are prone to higher air pollution exposure based on state-of-the-art satellite observations and hence are exposed to greater risk of respiratory problems.
• Multi-satellite remote sensing of air pollutants has evolved dramatically over the last decade. Synergic measurements of satellite and in-situ observation provide a more comprehensive understanding of air pollution episodes. In 2020, a complete nationwide lockdown was imposed over India to impede the spread of coronavirus disease. This enormously disrupted the economy with a single positive side effect, a short-term improvement in the air quality near the surface.

• According to the results, carbon monoxide showed a consistent increase (as high as 31%) of concentration at higher heights during the lockdown. The long-range transport and downward transport from the stratosphere significantly increased ozone concentrations over north India during the lockdown, and remote regions like the Himalayas and coastal cities showed the bare minimum influence of lockdown in air quality, with a tendency to increase in criteria air pollutants.
• The ARIES team explains ozone production and loss are constrained through the complex photochemistry involving its precursor gases like nitrogen oxides (NOx) and volatile organic compounds (VOCs). A decrease in its precursor gases could also lead to enhancement of ozone, depending upon the chemical environment. Moreover, ozone concentrations are also altered via ambient meteorology and dynamics, including the downward transport of ozone-rich air from the stratosphere to the troposphere.
• According to the ARIES team, this study helped to identify the regions prone to higher air pollution exposure hence can identify areas at a greater health risk. The team previously, with scientists from the ISRO, showed INSAT-3D as a valuable Indian geostationary satellite to study ozone pollutions over India; however, for other criteria air pollutants (i.e., NO2, SO2, CO, VOCs, etc.), India is lacking in space-based observations and need air quality monitoring indigenous satellite in orbit.

Value Addition:

The six common air pollutants are:

1. Particulate matter
2. Ground-level ozone (Ground-level ozone is formed when volatile organic compounds (VOCs), also known as hydrocarbons, and nitrogen oxides (NOx) interact in the presence of sunlight.)
3. Carbon monoxide
4. Sulphur oxides
5. Nitrogen oxides

5. IRANIAN KIWIS THREATEN KASHMIRI APPLES

THE CONTEXT: In early December 2021, the import of Iranian kiwis from Afghanistan to India has posed a major concern for apple dealers in Kashmir following a contagious quarantine pest threat found.

THE EXPLANATION:

• Since October 2021, India has intercepted quarantine pest ‘Aspidiotus netil’ in 22 consignments and ‘Pseudococcu Calceolariae’ pest in two Kiwi fruit consignments.
• According to the Union Ministry of Agriculture, India has suspended the import of fresh Kiwi fruits from Iran due to the rise in pest infested consignments from the middle eastern nation despite repeated warnings.

• The Import of Iran’s fresh Kiwi fruits has been banned with effect from December 2021 by the nodal body National Plant Protection Organization (NPPO) under the Agriculture Ministry.
• Earlier in 2019 too, India had intercepted a quarantine pest called ‘Aspidiotus netil’ from 13 consignments and a non-quarantine pest ‘Aonidiella aurantii’ from two consignments of Kiwi fruits from Iran. The non-compliance report has been sent on a regular basis to Iran for these consignments but so far no action has been taken nor the interception has decreased.”
• Also, the Ministry said the introduction of any quarantine pests through infested import consignments is a threat to Indian biosecurity and is dealt with under the provisions of Indian regulation.
• The Indian government has suspended the import of fresh kiwi fruits from India as each country has sovereignty and authority to protect itself. Iran government has also been requested to investigate the cases of non-compliance and submit an action taken report at the earliest with respect to remedial measures taken to avoid future interceptions.
• “Pests entering in the territory of any apple producing State shall be a catastrophe for local farmers”. Farmers have demanded a complete ban on import of apples from Iran “till the quarantine pest issue is resolved”.
• Currently, India imports 4,000 tonnes of Kiwis from various countries, while the domestic production is about 13,000 tonnes, as per the government data.

About Kashmir Apples:

• According to government figures, Kashmir exports around 20 lakh metric tons of apple every year, and the horticulture industry is pegged to be worth around 8000 to 9000 crores including the employment it generates. Kashmir produces 75% of the total apple production in the country.

National Plant Protection Organization (NPPO)

• The establishment or update of a National Plant Protection Organization (NPPO) by each contracting party is a major step towards international cooperation to prevent the introduction and spread of plant pests. This IPPC guide aims to support the establishment of a functional NPPO as the competent and legally responsible body for regulatory plant protection functions, as outlined in the IPPC.

THE SCIENCE AND TECHNOLOGY

6. 5G TECHNOLOGY

THE CONTEXT: According to the Department of Telecommunications (DoT) Delhi, Gurgaon, Mumbai, Bengaluru, Kolkata, Ahmedabad, Hyderabad, and Pune will be the first places to get 5G services next year i.e 2022.

THE EXPLANATION:

What is 5G technology and how is it different?

• 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks. 5G mainly works in 3 bands, namely low, mid and high frequency spectrum — all of which have their own uses as well as limitations.
• While the low band spectrum has shown great promise in terms of coverage and speed of Internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
• This means that while telcos can use and install it for commercial cell phone users who may not have specific demands for very high speed Internet, the low band spectrum may not be optimal for specialised needs of the industry.
• The mid-band spectrum, on the other hand, offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.
• The high-band spectrum offers the highest speed of all the three bands but has extremely limited coverage and signal penetration strength. Internet speeds in the high-band spectrum of 5G has been tested to be as high as 20 Gbps (giga bits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

Where does India stand in the 5G technology race?

• Like other global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalise on the better network speeds and strength that the technology promised.
• All the three private telecom players, Reliance Jio Infocomm, Bharti Airtel and Vi, have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands, so that they are able to plan the rollout of their services accordingly. One big hurdle, however, is the lack of flow of cash and adequate capital with at least two of the three players, namely Bharti Airtel and Vodafone Idea.

What is the global progress on 5G?

• More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis. In countries like the US, companies such as AT&T, T-mobile, and Verizon have taken the lead when it comes to rolling out commercial 5G for their users.
• In other countries such as China, some of the telcos such as China Unicom had started 5G trials as early as 2018, and have since rolled out the commercial services for users.

THE PRELIMS PRACTICE QUESTION

Q1. In the context of Colonial India, Shah Nawaz Khan, Prem Kumar Sehgal and Gurbaksh Singh Dhillon are remembered as:

         a) leaders of Swadeshi and Boycott Movement

         b) members of the Interim Government in 1946

         c) members of the Drafting Committee in the Constituent Assembly

         d) officers of the Indian National Army

ANSWER FOR 27^TH DECEMBER 2021

ANSWER: D

EXPLANATION:

• Triclosan is a chemical with antibacterial properties. Generally, it is used in Toiletries. For decades, triclosan has been added to personal care products, such as hand soaps and cosmetics, and materials ranging from athletic clothing to food packaging. When you use a product containing triclosan, you can absorb a small amount through your skin or mouth.

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