THE ART, CULTURE AND HERITAGE

1. EXPLAINED: WHAT WERE THE BAMIYAN BUDDHAS, AND WHY DID THE TALIBAN DESTROY THEM?

THE CONTEXT: The Taliban regime in Afghanistan has said it would protect the ancient Buddha statues in MesAynak, also the site of a copper mine where the Taliban are hoping for Chinese investment.

THE EXPLANATION:

• The Taliban’s position is in marked contrast to the time they ruled Afghanistan earlier, when, in the face of global outrage, they brought down the centuries-old Buddha statues in Bamiyan using artillery, explosives, and rockets.
• The apparent change of heart over the MesAynak statues seems to be driven by economic interests, with the regime in desperate need of the income Chinese investment in the copper mines could generate.

The ancient Bamiyan Buddhas

• The Buddhas of Bamiyan were two 6th-century monumental statues, which were carved into the side of a cliff in the Bamiyan valley of central Afghanistan.
• The Bamiyan Buddha statues, hewn from sandstone cliffs, are said to have dated back to the 5th century AD, and were once the tallest standing Buddhas in the world. In their Roman draperies and with two different mudras, the statues were great examples of a confluence of Gupta, Sassanian and Hellenistic artistic styles.
• The Bamiyan valley, in the Hindu Kush mountains and along the river Bamiyan, was a key node of the early Silk Routes, emerging as a hub of both commercial and cultural exchange.
• According to UNESCO, the “rise of Bamiyan was closely connected with spread of Buddhism across Central Asia, and that in turn was linked to the political and economic currents of that time.
• It is also called Salsal and Shamama by the locals, they rose to heights of 55 and 38 metres respectively. Salsal means “light shines through the universe”, while Shamama is “Queen Mother”.

After the destruction

• In 2003, UNESCO included the remains of the Bamiyan Buddhas in its list of world heritage sites. It was proposed that the statues should be reconstructed with the pieces that were still available, and restored in their niches, but it was met with opposition.
• While some argued that security concerns would always remain around the newly built statues in the war-torn country, many said the empty niches should be preserved as a testament to the violent fanaticism that destroyed them.

THE INDIAN POLITY AND GOVERNANCE

2. SUPREME COURT STRIKES DOWN 10.5% RESERVATION FOR VANNIYARS IN TAMIL NADU

THE CONTEXT: The Supreme Court struck down the 10.5 per cent reservation provided to Vanniyars, a Most Backward Community (MBC) in Tamil Nadu, in government jobs and admission to educational institutions.

THE EXPLANATION:

• The Tamil Nadu Assembly had in February 2021 passed the then ruling AIADMK-piloted bill providing internal reservation of 5 per cent for Vanniyars, with the incumbent DMK government issuing an order in July 2021 for its implementation.
• It had split the aggregate 20 per cent reservation for MBCs and denotified communities into three separate categories by regrouping castes and provided a 10 per cent plus sub-quota for Vanniyars, formerly known as Vanniakula Kshatriyas.

Constitutional Provisions for Reservation

• Article 15(4) and 16(4): Enabled the State and Central Governments to reserve seats in government services for the members of the SC and ST.
• Constitution (77th Amendment) Act, 1995: The Constitution was amended and a new clause (4A) was inserted in Article 16 to enable the government to provide reservation in promotion.
• Constitution (85th Amendment) Act, 2001: Later, clause (4A) was modified by the Act to provide consequential seniority to SC and ST candidates promoted by giving reservation.
• Constitutional 81st Amendment Act, 2000: Inserted Article 16 (4 B) which enables the state to fill the unfilled vacancies of a year which are reserved for SCs/STs in the succeeding year, thereby nullifying the ceiling of fifty per cent reservation on the total number of vacancies of that year.
• Article 330 and 332: provides for specific representation through the reservation of seats for SCs and STs in the Parliament and in the State Legislative Assemblies respectively.
• Article 243D: provides reservation of seats for SCs and STs in every Panchayat.
• Article 233T: provides reservation of seats for SCs and STs in every Municipality.
• Article 335:
• The claims of STs and STs shall be taken into consideration with the maintenance of efficacy of the administration.
• Part XVI deals with the reservation of SC and ST in Central and State legislatures.

THE SOCIAL ISSUES AND SOCIAL JUSTICE

3. STATE OF THE WORLD POPULATION REPORT 2022

THE CONTEXT: According to the United Nations Population Fund (UNFPA)’s State of the World Population Report 2022, Between 2007-2011, 67 per cent of abortions in India were classified as unsafe. And unsafe abortions are the third leading cause of maternal mortality in India, and close to 8 women die from causes related to unsafe abortions each day.

THE EXPLANATION:

The report titled ‘Seeing the Unseen: the case for action in the neglected crisis of unintended pregnancy’, has found that 121 million unintended pregnancies occur every year globally, an average of 331,000 a day.

HIGHLIGHTS OF THE REPORT:

• One in seven unintended pregnancies in the world take place in India. The unintended pregnancies, and subsequent abortions, are intimately linked with the overall development of the country. As education and income levels increase, it results in a lowering of unintended pregnancies.
• It has called the staggering number of unintended pregnancies in the world “a global failure to uphold a basic human right”.One in seven unintended pregnancies in the world take place in India. The unintended pregnancies, and subsequent abortions, are intimately linked with the overall development of the country. As education and income levels increase, it results in a lowering of unintended pregnancies.
• “Globally, an estimated 257 million women who want to avoid pregnancy are not using safe, modern methods of contraception, and of them, 172 million women are using no method at all”.
• It adding that the current rate of 64 unintended pregnancies per 1,000 women means that roughly 6 per cent of the world’s women experience an unintended pregnancy each year.
• “An estimated 45 per cent of all abortions remain unsafe; they are also a public health emergency, hospitalising about seven million women a year globally, costing an estimated $553 million per year in treatment costs alone, and contributing to a significant share of all maternal morbidity and 4.7–13.2 per cent of all maternal deaths”.

India’s Pictures:

• Studies from India indicate unintended pregnancies are associated with lower maternal healthcare utilisation and poorer infant and maternal health outcomes. Women between the ages of 15–19 are at the highest risk of dying from an abortion-related complication, the report adds.
• The report also states 13 per cent of all young women (adolescents) in developing countries begin childbearing. Three-quarters of girls with a first birth at age 14 and younger had a second birth before turning 20, and 40 per cent of those with two births went on to have a third birth before turning 20. Half of the girls with a first birth between ages 15-17 had a second birth before turning 20.
• For adolescent fertility in India, women in the 15-19 age group have 43 births per 1,000 women (NFHS-5, 2019-21), which declined from 51 during NFHS-4 (2015-16). A total of 23.3 per cent women aged 20-24 were married before age 18 (NFHS-5), with a decline of only 3.5 points from NFHS-4. The median age at first birth is 21 years, and 9.3 per cent of women aged 20-24 have given birth before 18 years.
• The report points out that while teenage pregnancies in India have declined by 1 per cent, there is more that needs to be done. The report states that both the Medical Termination of Pregnancy Act of 1971, and the Medical Termination of Pregnancy (Amendment) Act 2021, which expands the scope of the Act and provides impetus for safer abortions, are progressive and encouraging.
• The NFHS 5 findings of increased contraception use across the country have been encouraging, with a 9 per cent jump in use of modern contraception methods between NFHS 4 and 5. However, it points out that female sterilisation as a method of contraception is at 37 per cent, and “is too high”.

What lies ahead?

• “If comprehensive sexuality education is not offered in her school, she may lack accurate information. Pregnancy may be her default option because she has few opportunities and choices in her life. Without a chance to finish her education, for instance, she may not see a reason to postpone childbearing.
• The UNFPA has propounded that increasing access and use of modern contraceptive methods in India, as well as creating awareness especially among adolescent girls through sex education, is the only way to curb unintended pregnancies and unsafe abortions.

THE INTERNATIONAL RELATIONS

4. 5TH BIMSTEC SUMMIT

THE CONTEXT: Prime Minister participated in the 5th BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Summit hosted in virtual mode by Sri Lanka, the current chair of BIMSTEC.

THE EXPLANATION:

• The Summit’s theme “Towards a Resilient Region, Prosperous Economies, Healthy People” captures the main current priorities of member states, and the efforts by BIMSTEC to develop cooperation activities that support member state’s programmes to deal with the economic and development consequences of the Covid-19 pandemic.
• The main outcome of the Summit was the adoption and signing of the BIMSTEC Charter, which formalizes the grouping into an organization made up of member states that are littoral to, and dependent upon, the Bay of Bengal.
• The Summit also saw considerable progress being achieved in the BIMSTEC connectivity agenda with the adoption of the ‘Master Plan for Transport Connectivity’ by Leaders which lays out a guidance framework for connectivity related activities in the region in the future.

OUTCOMES:

Prime Minister along with other leaders also witnessed the signing of three BIMSTEC agreements which represent progress being achieved in ongoing cooperation activities:

• BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters.
• BIMSTEC Memorandum of Understanding on Mutual Cooperation in the field of Diplomatic Training and
• Memorandum of Association on Establishment of BIMSTEC Technology Transfer Facility.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. PERMANENT BODY CONSTITUTED TO PREVENT ELEPHANT DEATHS ON RAILWAY TRACKS

THE CONTEXT: The Union Environment Ministry has constituted a “permanent” coordination committee that includes the Ministry of Railways and the Environment Ministry to prevent elephant deaths on railway tracks.

THE EXPLANATION:

• According to the Ministry of Environment, 19 elephants were killed across the country on railway tracks in 2018-19,14 in 2019-20 and 12 in 2020-21.
• These included making permanent and temporary speed restrictions in identified elephant corridors and habitats, making underpasses and ramps for movement of elephants at identified locations, providing fencing at selected locations, erecting signages to warn train drivers about identified elephant corridors, sensitising train crew and station masters to avoid train collisions with elephants, clearing vegetation on the sides of track within railway land, deputing Forest Department staff in railway control offices to liaison with railway authorities, engaging elephant trackers by the forest departments for timely action by alerting station masters and engine drivers as well as coordinating meetings between state forest departments and railway departments.
• According to the CAG, Railway collisions were the second-largest reason for the unnatural deaths of elephants despite tracts being specifically demarcated and notified as elephant passages.
• A Standing Committee on the Railways in 2013 had recommended restricting the speed of trains at vulnerable locations to reduce chances of collisions. This specifically translated into trains slowing down to 50 kilometre per hour (kmph) or less in vulnerable locations.
• The Wildlife Institute of India, an autonomous body of the Environment Ministry, in consultation with the Ministry of Environment Forest and Climate Change, National Highway Authority, National Tiger Conservation Authority and World Bank Group has published a document named ‘Eco-Friendly Measures to Mitigate Impacts of Linear Infrastructure’ to assist project agencies in designing linear infrastructure, including railway lines, to reduce human-animal conflicts.
• According to the Ministry, India had a total of 29,964 wild elephants as per an estimate done in 2017. The southern region comprising Tamil Nadu, Kerala, Karnataka, Andaman and Nicobar Islands, Andhra Pradesh and Maharashtra accounted for the highest population — 14,612 elephants.

Value Addition:

Elephants

There are three subspecies of Asian elephants – the Indian, Sumatran and Sri Lankan. The Indian has the widest range and accounts for the majority of the remaining elephants on the continent.

• IUCN Red List of threatened species status- African elephants are listed as “vulnerable” and Asian elephants as “endangered”.
• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) status- Appendix I. Appendix I lists species that are the most endangered among CITES-listed animals and plants. They are threatened with extinction and CITES prohibits international trade in specimens of these species except when the purpose of the import is not commercial, for instance for scientific research.

6. GEOLOGICAL HERITAGE SITES OF HIMALAYAN REGION OF INDIA

THE CONTEXT: Geological Survey of India (GSI) has identified two geological heritage sites in the Indian Himalayan Region of India.

THE EXPLANATION:

The details of the two sites identified by GSI in the Himalayan Region are as follows:

• These two geological heritage sites of Indian Himalayan region are not on the verge of disappearance. These sites are preserved in the respective States.
• Ministry of Mines has approached Ministry of Culture to explore the possibility of inclusion of Geological Heritage sites declared by GSI, under the purview of existing Ancient Monuments and Archaeological Sites and Remains Act 1958 (amended in 2010), by making suitable amendment in the Act.

VALUE ADDITION:

• The term geological heritage is used for natural geological or geo-morphological features that have aesthetic, intrinsic or scientific and educational value, that provide unique insight into geological processes affecting the formation or evolution of Earth.
• While there are 147 UNESCO Global geoparks spread across 41 countries.

THE ECONOMIC DEVELOPMENTS

7. PLI SCHEME FOR TELECOM SECTOR

THE CONTEXT: The Government has notified Production Linked Incentive (PLI) Scheme on 24.02.2021 to promote Telecom and Networking Products manufacturing in India within overall financial outlay of Rs.12,195 Crore over 5 years.

THE EXPLANATION:

Total 31 applicants have been approved under the Scheme, out of which 16 are MSME, 8 Non- MSME (Domestic) and 7 Non-MSME (Global).

• The projected investment proposed in the telecom Sector under the PLI Telecom Scheme is Rs. 3,344.90 crores.
• The financial outlay reserved for this scheme over the scheme period is Rs. 12,195 crores.
• 31 Companies have been selected under the PLI Scheme for manufacturing of telecom and networking products in India are detailed at Annexure.
• To reduce dependence on other countries for importing telecom and networking products, the Government has taken steps like imposition of basic custom duty (ranging from 10-20%) on certain identified telecom products and notified Public Procurement (Preference to Make in India) Order on 29.08.2018.

VALUE ADDITION:

About Production Linked Incentive (PLI) Scheme:

• Notified on April 1 as a part of the National Policy on Electronics.
• It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
• The scheme shall extend an incentive of 4% to 6% on incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for five years with financial year (FY) 2019-20 considered as the base year for calculation of incentives.
• The scheme will be implemented through a Nodal Agency, which shall act as a Project Management Agency (PMA) and be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by MeitY from time to time.
• All electronic manufacturing companies which are either Indian or have a registered unit in India will be eligible to apply for the scheme.
• These companies can either create a new unit or seek incentives for their existing units from one or more locations in India.
• However, all investment done by companies on land and buildings for the project will not be considered for any incentives or determine the eligibility of the scheme.

GOVERNMENT SCHEMES/INITIATIVES IN NEWS

8. PM-YUVA SCHEME

THE CONTEXT: Pradhan Mantri – Mentorships’s Scheme for Young writers (PM-YUVA) has been launched by the Ministry of Education on 29 May 2021 for young writers up to the age of 30 years.

THE EXPLANATION:

• The launch of YUVA (Young, Upcoming and Versatile Authors) isin tune with PM’s vision to encourage young writers to write about India’s freedom struggle.
• YUVA is a part of India@75 Project (Azadi Ka Amrit Mahotsav) to bring to the fore the perspectives of the young generation of writers on themes like Unsung Heroes, Freedom Fighters, Unknown and Forgotten Places and their role in National Movement, and other related themes in an innovative and creative manner. This scheme will thus help to develop a stream of writers who can write on a spectrum of subjects to promote Indian heritage, culture and knowledge system.
• The National Book Trust, India under the Ministry of Education as the Implementing Agency will ensure phase-wise execution of the Scheme under well-defined stages of mentorship. ​The books prepared under this scheme will be published by National Book Trust, India; and will also be translated into other Indian languages ensuring the exchange of culture and literature, thereby promoting ‘Ek Bharat Shreshtha Bharat’.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 31^ST MARCH  2022

Q. ‘Project NETRA’ of ISRO is for which one of the following purposes?

a) To know more about the outer surface of the Sun.

b) To keep an eye on the celestial phenomenon.

c) To detect the space debris and hazards to the Indian satellites.

d) To know more about nature of surface of the Mars planet.

ANSWER FOR 30^TH MARCH 2022

Answer: C

Explanation:

• In January 2021, Sri Lanka’s Cabinet decided to award renewable energy projects in Nainativu, Delft or Neduntheevu, and Analaitivu islands to Chinese firm Sinosoar-Etechwin.
• Now, India will set up hybrid power projects in three islands off Jaffna, effectively replacing the Chinese venture cleared by Colombo last year. The MoU for the project was among those signed during a meeting between visiting External Affairs Minister (EAM) S. Jaishankar and his Sri Lankan counterpart G.L. Peiris late on 28th March 2022.

1. Clash and Creation READ MORE
2. Never Allow Circumstances Break You READ MORE
3. Ethics of Ecology: The topical agenda of ecological ethics is molded by contemporary environmental problems READ MORE

1. Dry March: Is India looking at deficient pre-monsoon rain in 2022 READ MORE
2. Dry March: Is India looking at deficient pre-monsoon rain in 2022 READ MORE

1. Social media impact: Shield India’s young READ MORE   
2. Gender violence not just a legal issue READ MORE

1. Identity and privacy: Prisoners’ identification Bill, which raises privacy, data safety concerns, requires scrutiny READ MORE  
2. Why the Criminal Identification Bill overreaches: It clubs serious offences with trivial ones and lacks enough safeguards on access to sensitive data READ MORE
3. New methods, new concerns: The ways in which investigative agencies identify criminals and suspects have drastically changed over the course of the 21st century READ MORE
4. The MCD bill is an assault on democracy READ MORE
5. Captive rights: There is a need for disciplining jail inmates, with humaneness READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. 5th BIMSTEC Summit READ MORE  
2. PLI scheme for telecom sector READ MORE
3. Geological Heritage Sites of Himalayan Region of India READ MORE
4. ISRO to step up tracking of space debris READ MORE
5. Four government-run film and media units merged with NFDC READ MORE
6. Explained: What were the Bamiyan Buddhas, and why did the Taliban destroy them? READ MORE
7. Supreme Court strikes down 10.5% reservation for Vanniyars in Tamil Nadu READ MORE
8. Pluto: ‘Recent’ volcanism raises puzzle — how can such a cold body power eruptions? READ MORE
9. Explained: Why Karnataka is launching an untouchability eradication scheme in 2022 READ MORE
10. Permanent Body constituted to prevent elephant deaths on railway tracks READ MORE

Main Exam   

GS Paper- 1

1. Social media impact: Shield India’s young READ MORE   
2. Early Indic visions of history – I READ MORE
3. Dry March: Is India looking at deficient pre-monsoon rain in 2022 READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Identity and privacy: Prisoners’ identification Bill, which raises privacy, data safety concerns, requires scrutiny READ MORE  
2. Why the Criminal Identification Bill overreaches: It clubs serious offences with trivial ones and lacks enough safeguards on access to sensitive data READ MORE
3. New methods, new concerns: The ways in which investigative agencies identify criminals and suspects have drastically changed over the course of the 21st century READ MORE
4. The MCD bill is an assault on democracy READ MORE
5. Captive rights: There is a need for disciplining jail inmates, with humaneness READ MORE

SOCIAL ISSUES

1. Report: 67% abortions in India unsafe, cause nearly 8 deaths every day READ MORE
2. Gender violence not just a legal issue READ MORE

INTERNATIONAL ISSUES

1. India and Australia are finally acting like the natural partners they are READ MORE
2. The Great Debate Over India’s Neutrality in the Ukraine War READ MORE
3. India Scores a Strategic Victory Over China in Sri Lanka READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Explaining Sri Lanka’s economic crisis: The country’s current situation is due to misguided policies and flawed external advice READ MORE
2. India’s food response as ‘Vasudhaiva Kutumbakam’ READ MORE
3. Growth in exports needs consistency READ MORE

ENVIRONMENT AND ECOLOGY  

1. Global Wind and Solar Growth on Track To Meet Climate Targets READ MORE

SECURITY

1. Inter-state border pact: Assam, Meghalaya show way for peaceful resolution READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Clash and Creation READ MORE
2. Never Allow Circumstances Break You READ MORE
3. Ethics of Ecology: The topical agenda of ecological ethics is molded by contemporary environmental problems READ MORE

Questions for the MAIN exam

1. ‘The concern over privacy and the safety of the data are undoubtedly significant and the collection of any sensitive data ought to be introduced only after a strong data protection law’. Examine the statement in the light of the recently proposed Criminal Procedure (Identification) Bill, 2022.
2. ‘India-Australia Economic Cooperation and Trade Agreement represents a watershed moment in bilateral relations, and a significant turning point for India’s foreign policy in terms of geo-strategy as well as geo-economics’. Comment on the statement in the light of recent developments in India-0Australia relations.

QUOTATIONS AND CAPTIONS

• Peace is not only better than war, but also infinitely more arduous.
• The current Sri Lankan economic crisis, then, is the product of the historical imbalances in the economic structure, the IMF’s loan-related conditionalities, misguided policies of authoritarian rulers and the official embrace of pseudo-science.
• India’s recent and ongoing humanitarian food assistance to the people of Afghanistan, through the United Nations Food Programme is an example of its commitment and commendable steps towards humanitarian crises.
• As India’s foodgrain surplus continues to grow, along with its footprint as a key humanitarian food assistance player, underlining its partnership with the WFP, it is also important to highlight the story of its transition from receiving food aid to now providing food aid to those in need.
• Humanitarian food assistance and partnerships that help create robust policy innovations by way of food safety nets and resilient livelihoods, will contribute towards global peace.
• India has made major progress in addressing hunger and malnutrition, but a lot needs to be done and we must continue this path as the trailblazer in access and inclusion through public policies and systems.
• The concern over privacy and the safety of the data is undoubtedly significant. Such practices ought to be introduced only after a strong data protection law, with stringent punishment for breaches, is in place.
• India-Australia Economic Cooperation and Trade Agreement represents a watershed moment in bilateral relations, and a significant turning point for India’s foreign policy – in terms of geo-strategy as well as geo-economics.
• Ethics itself must change to fit the reality that humans are not only social animals, as recognized in classical ethics, but also ecological animals.

50-WORD TALK

• Although Russia-Ukraine talks are far from ending their war, Moscow’s promised pullback of troops is an encouraging step forward. President Vladimir Putin’s military has taken a beating, but it still has formidable destructive capacities. To ensure Putin doesn’t use them, he’ll have to be allowed a face-saving exit for now.
• BJP’s description of Odisha IAS, IPS officers as politicians in disguise is a tad harsh and sweeping but not entirely devoid of merit. They had no business congratulating CM Naveen Patnaik on election victories. They must remember that their oath of allegiance is to the Constitution, not to political masters.

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 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.

[WpProQuiz 190]

THE INTRODUCTION: Services sector contributes over 50 percent to India’s GDP. While the Covid-19 pandemic has hurt most sectors of the economy, the services sector has been the worst affected as its’ share in India’s GVA declined from 55 percent in 2019-20 to 53 percent in 2021-22.1 Within the services sector, the effect of Covid-19 has been varied. While non-contact services such as information, communication, financial, professional, and business services have remained resilient, the impact has been much more severe on contact-based services such as tourism, retail trade, hotel, entertainment, recreation, etc.

IMPACT OF COVID-19 AND SEQUENTIAL RECOVERY

• The services sector contracted by 8.4 percent Year on Year (YoY) in 2020-21 (Table 1). This decline was driven by a sharp contraction of 18.2 percent YoY in the sub-sector ‘Trade, hotels, transport, communication & services related to broadcasting.
• Owing to its contact-intensive nature, the services included in this sub-sector had to bear the maximum brunt of the disruptions caused by the prevailing pandemic.
• The sub-sector ‘Public administration, defense & other services’ includes expenditure by the government and services such as health, education, recreation, etc, on the other, contracted by 4.6 percent YoY in 2020-21.

• The relatively less contact intensive sub-sector ‘Financial, real estate & professional services’ was the least impacted, with a marginal decline of 1.5 percent YoY in its GVA during 2020-21.

TRENDS IN HIGH-FREQUENCY INDICATORS

The upturn in Services GVA, when seen with the trend in high-frequency indicators such as Purchasing Managers Index (PMI) Services Index, freight and passenger traffic point to a pickup in economic momentum.

SERVICES PMI

• India’s services sector activity, gauged by PMI services, which had contracted for five consecutive months since March 2020, recovered sharply in October 2020. It dropped again for three consecutive months (May, June, and July 2021) as a consequence of the second Covid-19 wave. Notably, the contraction during May-July 2021 was not as sharp as seen during the first lockdown.
• With the easing of restrictions, PMI Services started to grow once again from August 2021 recording the strongest jump in over 10 years to 58.4 in October 20213 (Figure 1(a)). PMI index moderated to 55.5 in December 2021.

FREIGHT TRAFFIC

• As the economy gradually opened up in June 2020, freight traffic also improved. Freight traffic registered strong growth during April- June 2021, partly reflecting the rebound from the low base during the same period last year. The impact of the second covid wave in April-May 2021 on these indicators was much more muted as compared to during the full lockdown in March-May 2020.

BANK CREDIT TO THE SERVICES SECTOR

• Bank credit growth to the services sector which had moderated significantly in 2019, started picking up in 2020, increasing to 8.8 percent (YoY) at the end of December 2020, as compared to 6.2 percent in December 2019 (Figure 2). This momentum has lost its pace in 2021-22.
• Bank credit growth decelerated to 3.6 percent YoY at the end of November 2021 as compared to 8.2 percent a year ago. However, it is important to note that corporates have raised more money through capital markets than banking capital in 2021-22 so far.

SERVICES SECTOR SHARES AT THE STATE AND UT LEVEL

• The services sector accounts for more than 50 percent of the Gross State Value Added (GSVA) in 12 out of the 33 states and UTs (Table 3). Chandigarh stands out with a particularly high share of services in GSVA at 74 percent while Sikkim’s share remains the lowest at 24.25 percent. Notably, the Services share in Sikkim’s GSVA has increased from over 18 percent in 2018-19 to over 24 percent in 2020-21. Similarly, over the last three years, the share of services in GSVA has increased by over 4 percent for Himachal Pradesh and Odisha. Maharashtra and Karnataka are the top two contributors to services GSVA, with Rs 15.1 lakh crore and Rs 9.71 lakh crore gross value added by the services sector in 2020-21 respectively.
• Due to the Covid-19 pandemic and restrictions on movement, GSVA in the services sector declined in 2020-21 relative to the pre-pandemic year 2019-20. This is true for 13 out of 20 states for which data is available. During 2020-21, services GSVA contracted by almost 11 percent in Rajasthan and almost 10 percent in Jharkhand and Punjab. On the other hand, Sikkim achieved the highest growth of 11.71 percent in services GSVA during 2020-21.

FDI IN SERVICES

• The Services Sector was the largest recipient of FDI inflows in India. During H1 2021-22, Services Sector received $ 16.73 billion in FDI equity inflows. “Financial, Business, Outsourcing, R&D, Courier, Tech testing & Analysis along with Education sub-sector witnessed strong FDI inflows”, mentioned the Survey.

TRADE-IN SERVICES

• India had a dominant presence in global services exports. It remained among the top ten services exporter countries in 2020, with its share in world commercial services exports increasing to 4.1% in 2020 from 3.4% in 2019. “The impact of Covid-19 induced global lockdown on India’s services exports was less severe as compared to merchandise exports”.
• Despite Covid-19’s impact on transport exports, double-digit growth in gross exports of services, aided by exports of software, business, and transportation services, resulting in an increase of 22.8% in net exports of services in H1 2021-22.

SUB-SECTOR WISE PERFORMANCE

IT-BPM (INFORMATION TECHNOLOGY – BUSINESS PROCESS MANAGEMENT) SECTOR

• IT-BPM sector as a major segment of India’s services. During 2020-21, according to NASSCOM’s provisional estimates, IT-BPM revenues (excluding e-commerce) reached $ 194 billion, growing by 2.26% YoY, adding 1.38 lakh employees.
• Within the IT-BPM sector, IT services constitute the majority share (>51%). The Economic Survey observed that over the last year, several policy initiatives have been undertaken to drive innovation and technology adoption in the sector, including relaxation of Other Services Provider regulations, Telecom Sector Reforms, and Consumer Protection (e-commerce) Rules, 2020.
• This would significantly expand access to talent, increase job creation and catapult the sector to the next level of growth and innovation.

STARTUPS AND PATENTS

• Startups in India had grown remarkably over the last six years, most of which belonged to the Services Sector. More than 61,400 startups have been recognized in India as of January 10, 2022.
• India had a record number of Startups (44) reaching unicorn status in 2021.
• intellectual property, specifical patents were key to a knowledge-based economy.
• The number of patents filed in India has gone up to 58,502 in 2020-21 from 39,400 in 2010-11 and the patents granted in India have gone up to 28,391 from 7,509 during the same period.

Tourism Sector

• The tourism sector was a major contributor to GDP growth, foreign exchange earnings, and employment, however, the Covid-19 pandemic had a debilitating impact on world travel and tourism everywhere, including India.
• The resumption of International tourism will continue to depend largely on a coordinated response among countries in terms of travel restrictions, harmonized safety, and hygiene protocols, and effective communication to help restore consumer confidence.
• Special international flights have been operating under the Vande Bharat Mission which was currently in its 15^thphase and had carried over 63.55 lakh passengers.

PORTS, SHIPPING, AND WATERWAYS SERVICES

• The development of ports was crucial for the economy. Ports handled around 90% of export-import cargo by volume and 70% by value.
• The total cargo capacity of all ports had increased to 1,246.86 Million Tonnes Per Annum (MTPA) as of March 2021 from 1052.23 MTPA in March 2014.
• Also, the Port traffic had picked up in 2021-22 registering a growth of 10.16% during April-November 2021, after being hit by disruptions caused by Covid-19 in 2020-21.
• The Sagarmala Programme, a flagship program, aimed at promoting port-led development in the country with 802 projects worth Rs. 5.53 lakh crore under its ambit.

SPACE SECTOR

• Since its inception in the 1960s, the Indian space program has grown drastically. Capabilities have been developed in the space sector across all domains including indigenous space transportation systems, space assets comprising a fleet of satellites catering to various needs of the society.
• The Government undertook various reforms in the space sector in 2020, envisaging participation of the private sector in providing space-based services. These reforms included empowering New Space India Limited (NSIL) and changing the present supply-based model to a demand-driven model; creating an independent nodal agency i.e. Indian National Space Promotion and Authorization Centre (IN-SPACe) under the Department of Space; and providing a predictable, forward-looking, well defined and enabling regulatory regime for space activities in the country.

HIGHLIGHTS

• GVA of services crossed pre-pandemic level in July-September quarter of 2021-22; however, GVA of contact intensive sectors like trade, transport, etc. still remain below pre-pandemic level.
• Overall service Sector GVA is expected to grow by 8.2 percent in 2021-22.
• During April-December 2021, rail freight crossed its pre-pandemic level while air freight and port traffic almost reached their pre-pandemic levels, domestic air, and rail passenger traffic are increasing gradually – showing the impact of the second wave was much more muted as compared to during the first wave.
• During the first half of 2021-22, the service sector received over US$ 16.7 billion in FDI – accounting for almost 54 percent of total FDI inflows into India.
• IT-BPM services revenue reached US$ 194 billion in 2020-21, adding 1.38 lakh employees during the same period.
• Major government reforms include, removing telecom regulations in the IT-BPO sector and opening up of space sector to private players.
• Services exports surpassed the pre-pandemic level in the January-March quarter of 2020-21 and grew by 21.6 percent in the first half of 2021-22 – strengthened by global demand for software and IT services exports.
• India has become 3^rd largest start-up ecosystem in the world after US and China. The number of newly recognized start-ups increased to over 14000 in 2021-22 from 733 in 2016-17.
• 44 Indian start-ups have achieved unicorn status in 2021 taking the overall tally of unicorns to 83, most of which are in the services sector.