THE CONTEXT: The discontentment with growth not being beneficial to all became a highly debated topic in the past few years and the arena of policy making also focused on reforms in a situation where India achieved higher economic growth but sluggish poverty reduction. Realising the importance of this debate, the government of India also envisioned “inclusive growth” as a strategy to ensure that economic progress is pro-poor and inclusive. This article explains various reasons for poverty in India and how can economic growth be of help in reducing the poverty.

WHAT IS ECONOMIC GROWTH?

Economic growth is an increase in the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms. Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP), although alternative metrics are sometimes used.

Economic growth refers to an increase in aggregate production in an economy. Often, but not necessarily, aggregate gains in production correlate with increased average marginal productivity. That leads to an increase in incomes, inspiring consumers to open up their wallets and buy more, which means a higher material quality of life or standard of living.

 INDIA’S GROWTH STORY

India’s economic journey since 1947 has seen its share of ups and downs. Once branded a “third world country”, a term for poor developing nation-states which has now fallen into disuse, India is now among the biggest economies of the world. In 1991, India was a leader of the G-77 (a group of poor countries constantly demanding more concessions to develop). Today India is in the T-20, the top 20 economies that lead the world.

FOOD PRODUCTION

• Achieving “self-sufficiency” in food grains has been Independent India’s biggest achievement. From receiving food aid in the 1950s and 1960s to becoming a net exporter, India has seen a turnaround in food production. The total food production, which stood at 54.92 million tonnes in 1950, rose to 305.44 million tonnes in 2020-21.

GROSS DOMESTIC PRODUCT (GDP)

• India’s GDP stood at ₹ 2.7 lakh crore at Independence. 74 years on, it has reached ₹ 135.13 lakh crore. India is now the 6th largest economy in the world and is on its way to becoming the third-largest by 2031, as per Bank of America. An unmissable fact is that there has been a 10- fold increase in the GDP (at constant prices) since the reform process began in 1991.

FOREX 

• India’s forex reserves (In foreign currencies and other assets like gold) stood at a meagre ₹ 1,029 crores in 1950-51. In fact, India’s low forex reserves played a catalytical role in kick starting the economic reforms. With just $1.2 billion worth of forex reserves in 1991, India just had enough reserves to finance 3 weeks of imports. Three decades since the reform process began, India’s forex reserves now stand at ₹ 46.17 lakh crore – the world’s fifth-largest.

START-UP ECOSYSTEM

• India has emerged as the third-largest startup ecosystem in the world after the US and China and the pace of growth is not showing any signs of slowing down.

POVERTY

• Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can’t be met.
• According to World Bank, Poverty is pronounced deprivation in well-being and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
• In India, 21.9% of the population lives below the national poverty line in 2011, however, this estimate of numbers might have increased in the aftermath of the Covid pandemic bringing many into the poverty net and still many poor were pushed deeper into poverty.
• Also, the Periodic Labour Force Survey for the years 2017-18, 2018-19 and 2019-20 shows that the Top 10% earn approximately equal to the bottom 64%. The top 10 accounts for one-third of the incomes earned. While income disparity is not the only trigger to descent into poverty, it boldly outlines the everyday experiences of inequality and inequities.

ABSOLUTE POVERTY

• A condition where household income is below a necessary level to maintain basic living standards (food, shelter, housing). This condition makes it possible to compare different countries and also over time. It was first introduced in 1990, the “dollar a day” poverty line measured absolute poverty by the standards of the world’s poorest countries. In October 2015, the World Bank reset it to $1.90 a day.

RELATIVE POVERTY

• It is defined from the social perspective that is living standard compared to the economic standards of the population living in its surroundings. Hence it is a measure of income inequality.
• Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.

CAUSES OF POVERTY IN INDIA

GROWTH FACTOR 

• As development proceeds, the earnings of different groups rise differently.
• The incomes of the upper-income and middle-income groups rise more rapidly than those of the poor. This happens in the early stages of growth which India is passing at present.
• The explanation lies in the shift of population from agriculture which is a slow-growing sector to the modern large industrial sector which grows more rapidly.
• The capital-intensive type of growth leads to the concentration of income in those few hands who supply capital.

PRIVATE OWNERSHIP OF PROPERTY

• India being a mixed economy, has guaranteed the right to private property to its people Accordingly, tangible wealth like land, buildings, automobiles, white goods etc. are owned by a private individual.
• Inequalities of income have resulted from the ownership of private property in the following manner:

Ø  Inequalities Arising Out of Concentrated Land Ownership and Concentration of Tangible Wealth in the Rural Sector.

Ø  Private Ownership of Industries, Trade and Real Estates.

Ø  Inequalities in Professional Knowledge and Training

PREVALENCE OF THE LAW OF INHERITANCE

• The prevalence of the law of inheritance perpetuates income inequalities to a significant level.
• As per this law, the property of the father is usually inherited by his sons and daughters and thus children of the richer class automatically become richer and the children of the poorer class remain poor.

CLASS-BASED DEVELOPMENTS

• The upper classes were the main beneficiary of the nation’s surging economic development and poverty rates are also significantly lower among the upper caste Hindus rather than in the others classes
• One-third of Muslim and Hindu scheduled castes and tribes are in poverty compared to 10% of the upper castes Hindu. Altogether, 28% or around 360 million Indians are living in conditions of severe poverty.

OTHER FACTORS

Ø  SOCIAL FACTORS: Apart from economic factors, there are also social factors hindering the eradication of poverty in India. Some of the hindrances in this regard are the laws of inheritance, caste system, certain traditions, etc.

Ø  CLIMATIC FACTORS: Most of India’s poor belong to the states of Bihar, UP, MP, Chhattisgarh, Odisha, Jharkhand, etc. Natural calamities such as frequent floods, disasters, earthquakes and cyclones cause heavy damage to agriculture in these states.

Ø  POVERTY TRAP:

CONSEQUENCES OF POVERTY

SOCIO-ECONOMIC IMPACTS

• It is estimated that 300 million Indians live in abject poverty. This is the largest number in the world.
• India has the highest number of homeless people.
• Gender inequality leading to violence against women, the burden of unpaid care work, fiscal injustice for women and other marginalised groups. Inequality leads to increased crime and workplace accidents.
• It stems from class, caste and gender inequalities.

INADEQUATE DEVELOPMENT

• The gap between the rich and the poor has created “Club States” with Gujarat, Punjab and other rich states forming the richest clubs.
• Madhya Pradesh, Orissa, Bihar and other such states being left behind in terms of development.

INEQUALITY MAKES THE FIGHT TO END POVERTY MUCH HARDER

• Higher income inequality impedes class formation and poverty reduction.
• Unless growth benefits the poorest people more between now and 2030, the World Bank forecasts that the first Sustainable Development Goal (SDG) to eliminate extreme poverty will be missed.
• Access to social amenities such as decent shelter, clean water, nutrition and food as well as healthcare and education has become difficult for the poor.

Case study

The growth of the middle class plays a significant role in strengthening democratic structures and cultures. But rising income inequality in India is hampering the formation and growth of the middle class. If one were to take an income of $10-$20 per day in 2011 purchasing power parity as an indicator of the middle class, then India has not done as well as Malaysia, Indonesia and China in growing its middle class.

DISPARITIES IN SOCIAL SERVICE

• The highest-quality medical care is only available to those who have the money to pay for it.
• The country is a top destination for medical tourism. At the same time, levels of public spending on health are some of the lowest in the world.
• The poorest Indian states have infant mortality rates higher than those in Sub-Saharan Africa.
• The shortage of health specialists in rural areas, the report compares India’s 0.7 doctors per 1,000 people to the UK’s 2.8.
• The dropping enrolment ratio in government schools, particularly for girls, while private schools see an uptick in admission.

THE ANALYSIS: THE GROWTH – POVERTY PARADOX 

• The surging economic growth has improved the living conditions of its citizens, but these improvements were not uniformly distributed among India’s diverse population. Despite being among the richest countries in the world, India has attracted negative attention in recent years and ranked 66 out of 109 countries in Multidimensional Poverty Index 2021.
• On the surface, India’s story of growth and its triumph over poverty is enviable. India’s income per capita has increased fourfold in the last two decades, and its absolute poverty – measured on the international poverty line – reduced sharply from 40 per cent in 2000 to 13.4 per cent in 2015 but while India is no longer chronically poor, its growth has not been inclusive. The segment of the population that ‘graduated’ from poverty is largely still vulnerable, with consumption levels very close to the poverty line, and far from becoming a ‘middle class.’
• Poverty is concentrated more and more in urban areas, as now one-in-three poor is living in urban areas, which was about one-in-eight in the early 1950s. In the post-liberalisation period, urban growth and non-agricultural growth has emerged as major driver of national poverty reduction including rural poverty.
• Unlike in advanced economies, economic growth and inequality converge in terms of their effects on socio-economic indicators in India i.e. with economic growth the inequality in income and asset distribution also increases; however economic growth helps in reducing the poverty.
• Manifestation of unequal growth is also growing inequalities:
• Growing Rich: During the pandemic, the wealth of Indian billionaires increased from Rs 23.14 lakh crore to Rs 53.16 lakh crore.

ü  India has the third-highest number of billionaires in the world, just behind China and the United States.

ü  There is a 39% increase in the number of billionaires in India in 2021.

• Growing Poor: More than 4.6 crore Indians are estimated to have fallen into extreme poverty in 2020. This is nearly half of the global new poor according to the United Nations.

ü  Also, in the same year, the share of the bottom 50% of the population in national wealth was a mere 6%.

• Unemployment in India has also increased.

CASE STUDY OF TWO GOVERNMENT PROGRAMS AIMED AT POVERTY REDUCTION

PRADHAN MANTRI GRAM SADAK YOJANA (PMGSY)

• PMGSY, state-wise allocations are fixed based on pre-determined gaps in road infrastructure. That automatically ensures more money is released and roads get built.
• PMGSY is less prone to leakage because it is a specific asset-focused programme.

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGA)

• MGNREGA is supposed to be demand or need-driven, the reality is that it is being successfully implemented only in better-governed states even with lower levels of poverty.
• MGNREGA is general dole-based and not amenable to monitoring beyond a point.

MGNREGA may have a role in mitigating immediate rural distress on account of drought and other unforeseen calamities. But programmes like PMGSY provide more effective long-term poverty alleviation solutions, through raising overall productivity and expansion of non-farm employment opportunities.

BHAGWATI – SEN DEBATE

Bhagwati Model:The idea in the book ” Why Growth Matters: How Economic growth in India reduced Poverty and lessons for other developing countries” is in consonance with Adam Smith’s theory of the invisible hand of the market. It believes that increasing the pie of growth can ultimately lead to an increase in income and consequent development. In other words, it believes in the trickle-down effect.

Amartya’s Sen Model:The idea is propounded in his book ” An uncertain glory: India and its contradiction”. It proposes an increase in the capacity and capability of people as the prime mover of development. Thus Government needs to invest in public health, infrastructure, education and democratic participation. It fosters the idea of a bottom-up approach. The ability of each individual as a change agent. It is about empowerment.

THE WAY FORWARD: ELIMINATING POVERTY IN INDIA

FIXING MINIMUM WAGE 

• Guarantee each citizen a minimum wage consistent with a minimum standard of living.
• In India in 1948, the Minimum Wages Act was passed in pursuance of which minimum wages are being fixed for agricultural labour and labour in what is called the ‘sweated trades’. This is a step which will level up the incomes from below.

SOCIAL SECURITY 

• Introduction of a comprehensive social security scheme guaranteeing to each individual a minimum standard of economic welfare.
• The government includes progressively making school education free; ensuring reduced out-of-pocket expenses on health, and meeting global benchmarks of 6% and 3.5% of GDP on education and public health respectively.
• Strengthening quality public healthcare, strict enforcement of the Right to Education norms, stopping the commercialisation of education and health, and an increased focus on gender budgeting.

PROMOTION OF LABOUR-INTENSIVE MANUFACTURING

• The proportion of the labour force in agriculture has come down, but the workers who have left farms have not got jobs in modern factories or offices. Most are stuck in tiny informal enterprises with abysmal productivity levels.
• If India could somehow reverse this trend and promote labour-intensive manufacturing then inequality could fall.

MORE INCLUSIVE GROWTH

• The promotion and adoption of an Inclusive Growth Agenda is the only solution to the rising inequality problem. Economic growth which is not inclusive will only exacerbate inequality

SKILL DEVELOPMENT

• The development of advanced skills among the youth is a prerequisite if India wants to make use of its demographic dividend. The skilling of youth by increasing investment in education is the only way we can reduce inequality. India needs to become a Skill-led economy

PROGRESSIVE TAXATION

• Higher taxes on the Rich and the luxuries will help reduce income inequalities.
• Getting the richest one per cent in India to pay just 0.5 per cent extra tax on their wealth could raise enough money enough to increase government spending on the heath by 50 per cent

EQUAL OPPORTUNITY FOR ALL

• The Government may devise and set up some sort of machinery which may provide equal opportunities to all rich and poor in getting employment or getting a start in trade and industry.
• In other words, something may be done to eliminate the family influence in the matter of choice of a profession. For example, the government may institute a system of liberal stipends and scholarships, so that even the poorest in the land can acquire the highest education and technical skill.

LEARN FROM OTHER COUNTRIES

China’s case study

• Meta’s narrative for China’s economic development is that its leadership combined the drive for growth with the spreading of human capital.
• As the human capital endowment was relatively equal, most people could share in this growth, which accounts for the relative equality of outcomes in China when compared to India.
• The greater participation of women in the workforce of China

THE CONCLUSION:

India’s dominant economic growth over the last 30 years continued to pull millions of people out of poverty. Due to the unexpected impact of COVID-19, India experienced a spike in its poverty rate. Moving forward, the elimination of poverty in India over the next decade is within reach in spite of the challenges ahead.Rapid economic growth and the use of technology for social sector programs can help make a significant dent in extreme poverty in the country.

MAINS PRACTICE QUESTION:

1. Given India’s stage of development, India must continue to focus on economic growth to lift the poor out of poverty by expanding the overall pie. Comment.
2. Poverty in India is an ever-present problem throughout the country’s history, and unfortunately, it seems that it will continue to be a problem as long as income inequality continues to exist. Suggest measures to reduce income inequality in light of COVID-induced increased inequalities.

THE INDIAN POLITY AND GOVERNANCE

1.CYBER FRAUD CASES

THE CONTEXT: The National Crime Records Bureau (NCRB) compiles and publishes the statistical data on crimes in its publication “Crime in India”. The latest published report is for the year 2020.

THE EXPLANATION:

• As per the data published by the NCRB, State/UT-wise details of the cases registered under Fraud (includes Credit/Debit Card, ATM, Online Banking Fraud, OTP  Fraud & Others)  for  The NCRB started collecting such data only from 2017.
• ‘Police’ and ‘Public Order’ are State subjects as per the Seventh Schedule of the Constitution of India. States/UTs are primarily responsible for deployment of adequate manpower, training of police personnel and developing mechanism to combat cyber crime.

To strengthen the mechanism to deal with cyber crime, including cyber frauds, in a comprehensive and coordinated manner, the Central Government has taken measures which, inter-alia, include the following:

• The Ministry of Home Affairs has set up the Indian Cyber Crime Coordination Centre(I4C) to provide a framework and eco-system for LEAs to deal with cyber crime in a comprehensive and coordinated manner.
• Citizen Financial Cyber Fraud Reporting and Management System has been launched for immediate reporting of financial frauds and to stop siphoning off fund by the fraudsters. A toll-free Helpline number ‘1930’ has been operationalized to get assistance in lodging online cyber complaints.
• The ‘National Cyber Forensic Laboratory (NCFL)’ a state of the art facility has been set up under the I4C to train & assist the State/UT Investigation Officers. The NCFL has been made functional and its facilities are being extended to States/UTs.
• The Massive Open Online Courses (MOOC) platform under the I4C called ‘CyTrain’ portal has been developed. CyTrain portal helps in the capacity building of Police Officers/ Judicial Officers through online course on critical aspects of cybercrime investigation, forensics, prosecution, etc., along with certification. So far, more than 21,300 Police Officers from States/UTs are registered and more than 5700 Certificates issued through the portal.

MEASURES TO TACKLE:

• Need for Massive Cybersecurity Awareness Campaign: In order to proactively deal with cybercrime, the governments need to carry out a massive cybersecurity awareness campaign, regarding cyber frauds, use strong, unique passwords, being careful using public wi-fi, etc.
• Need for Data Protection Law: In the 21st century, Data is referred to as the new currency. Thus, there is a requirement for a stringent data protection regime.
• In this context, the European union’s General Data Protection Regulation and India’s Personal Data Protection Bill, 2019 are steps in the right direction.
• Need for Collaborative Trigger Mechanism: For developing countries like India where the citizenry is more vulnerable to cybercrime, there is an urgent need for a collaborative trigger mechanism.

2.NATIONAL MISSION FOR JUSTICE DELIVERY & LEGAL REFORMS

THE CONTEXT: According to Ministry of Law of Justice, National Mission for Justice Delivery and Legal Reforms was set up in August, 2011 with the twin objectives of increasing access by reducing delays and arrears in the system and enhancing accountability through structural changes and by setting performance standards and capacities

THE EXPLANATION:  

The Mission has been pursuing a co-ordinated approach for phased liquidation of arrears and pendency in judicial administration, which, inter-alia, involves better infrastructure for courts including computerization, increase in strength of subordinate judiciary, policy and legislative measures in the areas prone to excessive litigation, re-engineering of court procedure for quick disposal of cases and emphasis on human resource development.

The major steps taken during the last eight years under various initiatives are as follows:

• Improving infrastructure for Judicial Officers of District and Subordinate Courts: As on date, Rs. 9,13.21 crores have been released since the inception of the Centrally Sponsored Scheme (CSS) for Development of Infrastructure Facilities for Judiciary in 1993-94. The number of court halls has increased from 15,818 as on 30.06.2014 to 20,993 as on 30.06.2022 and number of residential units has increased from 10,211 as on 30.06.2014 to 18,502 as on 30.06.2022 under this scheme.
• Leveraging Information and Communication Technology (ICT) for improved justice delivery: Government has been implementing the e-Courts Mission Mode Project throughout the country for information and communication technology enablement of district and subordinate courts. The Department has developed an online portal for reporting by all High Courts on the compliance of Arrears Eradication Scheme guidelines of the Malimath Committee Report.

• Emphasis on Alternate Dispute Resolution (ADR): Commercial Courts Act, 2015 (as amended on 20th August, 2018) stipulates mandatory pre-institution mediation and settlement of commercial disputes. Amendment to the Arbitration and Conciliation Act, 1996 has been made by the Arbitration and Conciliation (Amendment) Act 2015 for expediting the speedy resolution of disputes by prescribing timelines.
• Initiatives to Fast Track Special Type of Cases: The Fourteenth Finance Commission endorsed the proposal of the Government to strengthen the judicial system in States which included, inter-alia, establishing Fast Track Courts for cases of heinous crimes; cases involving senior citizens, women, children etc., and urged the State Governments to use the additional fiscal space provided in the form of enhanced tax devolution form 32% to 42% to meet such requirements.

VALUE ADDITION:

NATIONAL JUDICIAL INFRASTRUCTURE AUTHORITY OF INDIA (NIJAC)

• The idea for such an agency was first proposed by CJI Ramana in March this year, even before he took office.
• Soon after he was sworn in, the CJI commenced work on the NJIC and a survey of 6,000 trial courts in various states was undertaken as part of this exercise.
• budgetary allocation for state judiciary often lapses since there is no independent body to supervise and execute works related to improving court premises. NJIC is expected to fill this vacuum and overcome problems related to infrastructure.
• The basic idea behind NJIC is not to leave HC chief justices — who mostly undertake infrastructure-related projects in trial courts — at the mercy of state governments.
• the NJIC will be an “honest” agency that will monitor the execution of work for which the funds are earmarked.

What are the reasons behind infrastructural lag?

Insufficient funds:

• The Centrally-Sponsored Scheme for the development of Judiciary Infrastructure, which began in 1993 and was extended for another five years in July 2021, provides funds for the development of judicial infrastructure.
• States, on the other hand, do not provide their fair share of funds, and as a result, money allotted under the system is frequently left unutilized and lapses.

Funding for Non-Judicial Purposes:

• In some cases, the claimed, states have allegedly transferred a portion of the funds for non-judicial purposes in some cases.
• Nobody is willing to assume responsibility for infrastructure projects, even in the judiciary, particularly in trial courts.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3.CHEETAHS LIKELY TO ARRIVE IN MADHYA PRADESH’S KUNO NATIONAL PARK BEFORE AUGUST 15, 2022

THE CONTEXT: The agreement, which has been negotiated for some years, will prepare the ground for the relocation of the first batch of cheetahs from southern Africa to Madhya Pradesh’s Kuno National Park, with officials trying to complete the first transfer before August 15, 2022.

THE EXPLANATION:  

• India came one step closer to bringing back the world’s fastest animal, which has been extinct in the country since 1952, with an agreement between the government and the visiting Namibian Deputy Prime Minister and Minister of International Relations.
• According to the Environment Ministry, “Completing 75 glorious years of Independence with restoring the fastest terrestrial flagship species, the cheetah, in India, will rekindle the ecological dynamics of the landscape.
• The MoU focused on biodiversity conservation, and the sharing of expertise between the two countries, technological applications, collaborations on climate change, pollution and waste management, and the exchange of personnel for training and education in wildlife management. However, the government has yet to reveal whether it has already procured the cheetahs, how many will be transferred in the first trial, and when they are likely to be brought to India.
• According to officials, plans for the Cheetah translocations to Kuno are in compliance with the IUCN’s guidelines, with particular focus on the forest site quality, prey density and the current carrying capacity for a large mammal like the Cheetah.
• As per United Nations, Cheetahs have been listed as “Vulnerable” in the Red List of Threatened Species by the International Union for Conservation of Nature (IUCN). However, recent study revealed the decline in its population.

One-year trial period

• The cheetahs will arrive in India for a one-year trial period. The project for the cheetah — the only wild cat to go extinct in independent India — was put back on track in 2020 when the Supreme Court lifted a stay on the original proposal to introduce African cheetahs from Namibia into the Indian habitat on an experimental basis.
• In May 2012, the court had stalled the plan to initiate the foreign cheetahs into the Kuno sanctuary in Madhya Pradesh fearing they would come into conflict with the plan for bringing lions into the same sanctuary.

VALUE ADDITION:

ABOUT KUNO NATIONAL PARK

• It is located in the Sheopur district of Madhya Pradesh.
• Kuno River, one of the major tributaries of Chambal River flows through the entire length bisecting the National Park division.
• Kuno park is known for the leopard, Jackal, Chinkara.
• Wildlife Institute of India and Wildlife Trust of India had shortlisted Palpur-Kuno park as habitats for Cheetahs and Asiatic lions.
• Cheetah which once roamed in the northern plains of India became extinct in India in 1948.
• The Kuno has the potential to carry populations of all four of India’s big cats the tiger, the leopard, the Asiatic lion and also cheetah, all four of which have coexisted within the same habitats historically before they were exhausted thanks to overhunting and habitat destruction.
• Currently, the leopard and striped hyena are the only larger carnivores within the Kuno National Park, the single lone tiger T-38 having returned to Ranthambore earlier this year (2021).

THE ECONOMIC DEVELOPMENTS

4.MSP AND GOVT PANEL’S TASK

THE CONTEXT: Recently, the government notified a committee to “promote zero budget based farming”, to “change” crop pattern keeping in mind the changing needs of the country, and to make MSP (minimum support price) more “effective and transparent”.

THE EXPLANATION:  

Why has the committee been set up?

• It has been constituted by the Ministry of Agriculture and Farmers’ Welfare, as a follow-up to an announcement by Prime Minister 2021 when he had declared the government’s intention to withdraw the three farm laws.
• The protesting farm unions led by the SKM had demanded a legal guarantee on MSP, based on Swaminathan Commission’s ‘C2+50% formula’ (C2 is a type of cost incurred by farmers; see box). This was in addition to their demand for repeal of the three farm laws — Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020; and the Essential Commodities (Amendment) Act, 2020.

So, will the committee deliberate on the legal guarantee of MSP?

Its terms and references do not mention legal guarantee of MSP. What they do mention is making MSP “more effective and transparent”. “As per announcement of Hon’ble Prime Minister that ‘A committee will be constituted to promote Zero budget based farming, to change crop pattern keeping in mind the changing needs of the country, and to make MSP more effective and transparent.

What is the committee tasked with, then?

• Under the heading ‘Subject matter of constitution of the Committee’, the committee is to look at MSP, natural farming, and crop diversification. For MSP, its agenda is:

Suggestions to make available MSP to farmers of the country by making the system more effective and transparent

Suggestions on practicality to give more autonomy to Commission for Agricultural Costs and Prices (CACP) and measures to make it more scientific

To strengthen the Agricultural Marketing System as per the changing requirements… to ensure higher value to the farmers through remunerative prices… by taking advantage of the domestic and export opportunities.

• On natural farming, the committee has been asked to give “suggestions for programmes and schemes for value chain development, protocol validation & research for future needs and support for area expansion under the Indian Natural Farming System by publicity and through involvement and contribution of farmer organizations”.
• It has also been tasked with suggesting strategies for research and development institutions being made knowledge centres, and introducing a natural farming system curriculum in educational institutions; suggesting a farmer-friendly alternative certification system and marketing system for natural farming processes and products; deliberating on issues related to chain of laboratories for organic certification of natural farming products, and other aspects.
• For crop diversification, the committee will deliberate on, among various aspects, mapping of cropping patterns of agro-ecological zones; strategy for a diversification policy to change the cropping pattern according to changing needs; arrangement for agricultural diversification and a system to ensure remunerative prices for the sale of new crops.

Value Addition:

About MSP:

• MSP is the rate at which the government purchases crops from farmers and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
• The government of India sets the MSP twice a year for 23 crops (13 Kharif, 6 Rabi and 4 commercial crops).
• The Commission for Agricultural Costs and Prices (CACP)attached the Ministry of Agriculture office, which decides the minimum support price and recommends it to the government. It is an advisory body whose recommendations are not binding to the government.

FRP for Sugarcane:

• The central government and State Government determine them.
• The Central Government announces Fair and Remunerative Prices, which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which the Prime Minister chairs.
• The State Advised Prices (SAP) are announced by key sugarcane producing states generally higher than FRP.

 Additional information about crops:

 5.NITI AAYOG RELEASES REPORT ON DIGITAL BANKS; PROPOSES A LICENSING AND REGULATORY REGIME FOR INDIA

THE CONTEXT: NITI Aayog’s report makes a case and offers a template and roadmap for a licensing and regulatory regime for digital banks. It focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.

THE EXPLANATION:  

According to the NITI Aayog CEO,Given the need for leveraging technology effectively to cater to the needs of banking in India, this report studies the prevailing gaps, the niches that remain underserved, and the global regulatory best practices in licensing digital banks’.

Recommendations:

The report recommends a carefully calibrated approach, comprising the following steps:

• Issue of a restricted digital bank licence (to a given applicant) (the license would be restricted in terms of volume/value of customers serviced and the like).
• Enlistment (of the licensee) in a regulatory sandbox framework enacted by the Reserve Bank of India.
• Issue of a ‘full-scale’ digital bank licence (contingent on satisfactory performance of the licensee in the regulatory sandbox, including salient, prudential and technological risk management).
• The report also maps prevalent business models in this domain and highlights the challenges presented by the ‘partnership model’ of neo-banking—which has emerged in India due to a regulatory vacuum and in the absence of a digital bank licence.
• The methodology for the licensing and regulatory template offered by the report is based on an equally weighted ‘digital bank regulatory index’. This comprises four factors—(i) entry barriers; (ii) competition; (iii) business restrictions; and (iv) technological neutrality. The elements of these four factors are then mapped against the five benchmark jurisdictions of Singapore, Hong Kong, United Kingdom, Malaysia, Australia and South Korea.

The Context for the Case of Digital Banks in India: Financial Inclusion

• In recent years, India has made rapid strides in furthering financial inclusion, catalysed by the Pradhan Mantri Jan Dhan Yojana and India Stack. However, credit penetration remains a policy challenge, especially for the nation’s 63-million-odd MSMEs that contribute 30% to GDP, 45% to manufacturing output, and 40% to exports, while creating employment for a significant section of the population.
• Over the past few years, thanks to digitization—ushered in by the Jan Dan-Aadhar-Mobile (JAM) trinity and Aadhaar—financial inclusion has become a reality for Indians. This has only been furthered by the Unified Payments Interface (UPI), which has witnessed extraordinary adoption. UPI recorded over 4.2 billion transactions worth ₹7.7 trillion in October 2021. The platform approach taken by the government in conceptualizing UPI has resulted in valuable payment products being developed on top of it. As a result, payments can now be made with a click not just at retail outlets but also peer to peer—completely redefining the way in which money is transferred between individuals.
• A ‘whole-of-India approach’ towards financial inclusion has also resulted in Direct Benefit Transfer through apps such as PM-KISAN and extending microcredit facilities to street vendors through PM-SVANIDHI.
• India has also taken steps towards operationalizing its own version of ‘open banking’ through the Account Aggregator (AA) regulatory framework enacted by the Reserve Bank of India. Once commercially deployed, the AA framework is envisaged to catalyse credit deepening among groups that have been hitherto under-served.
• The success that India has witnessed on the payments front is yet to be replicated when it comes to the credit needs of its micro, small and medium businesses. The current credit gap and the business and policy constraints reveal a need for leveraging technology effectively to cater to these needs and bring the under-served further within the formal financial fold.

 THE GOVERNMENT INTERVENTIONS AND SCHEMES

6.WHY HAS THE GOVERNMENT OPENED OPIUM PRODUCTION AND PROCESSING TO PRIVATE PLAYERS?

THE CONTEXT: India has opened up the highly regulated sector of producing and processing opium to private players. Bajaj Healthcare has become the first company to win tenders for producing concentrated poppy straw that is used to derive alkaloids that are the active pharmaceutical ingredient in pain medication and cough syrups.

THE EXPLANATION:

Since when has opium been grown in India?

• India has been growing poppy at least since the 15th century, as per historical records. The British East India Company assumed monopoly on the cultivation of poppy when the Mughal Empire was on the decline, and the entire trade was brought under government control by 1873.
• After India gained independence, the cultivation and trade of opium passed on to the Indian government, with the activity being controlled by The Opium Act, 1857, The Opium Act, 1878, and The Dangerous Drugs Act, 1930. At present, the cultivation and processing of poppy and opium is controlled by the provisions of The Narcotic Drugs and Psychotropic Substances (NDPS) Act and Rules.

What is the process of growing and processing opium in India?

Uses

Opium is unique in its therapeutic value and is indispensable in the medical world.

It also finds use in Homeopathy and Ayurveda or Unani systems of indigenous medicines.

The opium which is used as Analgesics, Anti-Tussive, Anti spasmodic and as a source of edible seed-oil, acts as a medicinal herb.

• Due to the potential for illicit trade and risk of addiction, the cultivation of opium poppy is strictly regulated in the country, with the crops being allowed to be sown only in tracts of land notified by the central government in 22 districts in the states of Madhya Pradesh, Uttar Pradesh, and Rajasthan.
• The government announces the licensing policy for opium cultivation every year, providing details on minimum qualifying yield, the maximum area that can be cultivated by a single cultivator, and the maximum benefit that is allowed to cultivators for damage to the crop due to natural causes.
• “The cultivation of opium poppy is strictly monitored — the government uses satellite images to check for illicit cultivation. Once the crop is ready, they have a formula on how much the yield should be. This entire quantity is then bought by the government and processed in its own factories.

How does the involvement of private players help?

• The private company will process 6,000 MT of unopened poppy capsules and opium gum to produce active pharmaceutical ingredients over the next five years.
• The involvement of the private sector might boost the domestic production of various alkaloids such as morphine and codeine, bring in modern technology, and reduce imports. Despite being one of the few global cultivators of poppy, India still imports these active pharmaceutical ingredients as well as poppy seeds, which is also consumed as a food item in the country.
• The move is also aimed at offsetting the declining area under cultivation of poppy in India. In 2017 and 2019, under a trial phase, two private companies were allowed to produce concentrated poppy straw.

VALUE ADDITION:

Opium Cultivation In India

• After independence, the control over cultivation and manufacture of opium became responsibility of the Central Government with effect from April, 1950.
• At present the Narcotics Commissioner along with the subordinates exercises all powers and performs all functions relating to superintendence of the cultivation of the opium poppy and production of opium.
• The Commissioner derives this power from the Narcotic Drugs & Psychotropic Substances Act 1985 and Narcotic Drugs & Psychotropic Substances Rules, 198
• License for manufacture of certain types of narcotic drugs and psychotropic substances as well as permits for export and import of narcotic drugs, psychotropic and controlled substances are issued with the approval and permission of the Narcotics Commissioner.
• The opium poppy can be cultivated only in such tracts as are notified by the Government.
• India is one of the few countries internationally permitted (by the United Nations Office on Drugs and Crime) to cultivate opium poppy for export.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q.Consider the following statements with respect to Minimum Support Price:

1. The government of India sets the MSP twice a year.
2. The Commission for Agricultural Costs and Prices (CACP) which advises the minimum price, and the recommendations are binding ton the government.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

ANSWER FOR 20TH JULY 2022

ANSWER: A

EXPLANATION:

• It is a research design for experimental studies, which economists Michael R Kremer, Abhijit Banerjee and Esther Duflo used in their research.
• They went on to win the 2019 Nobel Prize winner in Economics.
• They had made use of RCT for their research on poverty.
• It is usually undertaken to study the effects of a new entrant in an environment.

1. Chariot and golden deer as powerful metaphors READ MORE
2. Dreams and reality READ MORE
3. The journey through self-taught art READ MORE

1. Europe heatwave: a number of reasons, climate change most worrying READ MORE
2. A robust plan to tackle heightened heat stress READ MORE
3. Risks that coastal communities face READ MORE

1. Revamp India’s school health services: As schools reopen, there is a need and an opportunity for States to look at a comprehensive package of services READ MORE
2. Saving mothers: Data on MMR should lead to restructuring health-care systems for women READ MORE

1. Examining the defection laws READ MORE
2. Policy needs to demarcate the difference between gambling and gaming READ MORE
3. Models of welfarism: The distribution of freebies has its limits READ MORE
4. Human rights: Access awaiting approval READ MORE
5. Indian judiciary is crying for basic infrastructure. Here’s what Centre & states need to do READ MORE
6. As SC Mulls Referring Sena Dispute to Constitution Bench, Tenth Schedule’s Relevance Under Scrutiny READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Cheetah to arrive in India by August 15 as country signs agreement with Namibia READ MORE
2. Phased implementation of digital currency for wholesale, retail segments in the works: RBI official READ MORE
3. RBI prepared to spend $100 billion more defending rupee READ MORE
4. With $87 billion, India top remittance recipient in 2021: UN report READ MORE
5. Explained: MSP and govt panel’s task READ MORE
6. SC nod to 27% quota for OBCs in local body polls READ MORE
7. Gaganyaan abort mission this year; solar, lunar missions in 2023 READ MORE
8. Explained: A major India-Africa conclave is taking place in New Delhi — why is it important? READ MORE

Main Exam

GS Paper- 1

1. Risks that coastal communities face READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Examining the defection laws READ MORE
2. Policy needs to demarcate the difference between gambling and gaming READ MORE
3. Models of welfarism: The distribution of freebies has its limits READ MORE
4. Human rights: Access awaiting approval READ MORE
5. Indian judiciary is crying for basic infrastructure. Here’s what Centre & states need to do READ MORE
6. As SC Mulls Referring Sena Dispute to Constitution Bench, Tenth Schedule’s Relevance Under Scrutiny READ MORE

SOCIAL ISSUES

1. Revamp India’s school health services: As schools reopen, there is a need and an opportunity for States to look at a comprehensive package of services READ MORE
2. Saving mothers: Data on MMR should lead to restructuring health-care systems for women READ MORE

INTERNATIONAL ISSUES

1. India-Vietnam ties, from strong to stronger: As New Delhi pursues its ‘Act East Policy’, Hanoi has become a valuable partner in the Indo-Pacific region READ MORE
2. New Cold War a test of India’s strategic skills READ MORE
3. Quad: India’s outreach booster READ MORE
4. India takes G20 Presidency READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. The cost of misrepresenting inflation: The inadequacy of monetary policy to address food-price-driven inflation has been recently flagged READ MORE
2. Central Bank Digital Currency – The Future of Money? READ MORE

ENVIRONMENT AND ECOLOGY

1. Europe heatwave: a number of reasons, climate change most worrying READ MORE
2. A robust plan to tackle heightened heat stress READ MORE

SCIENCE AND TECHNOLOGY

1. A man of God and a paragon of science READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Chariot and golden deer as powerful metaphors READ MORE
2. Dreams and reality READ MORE
3. The journey through self-taught art READ MORE

Questions for the MAIN exam

1. ‘As New Delhi pursues its ‘Act East Policy’, Vietnam has become a valuable partner in the Indo-Pacific region’. Comment.
2. A long-drawn-out new Cold War, generating myriad political and economic problems, calls for an onerous balancing act by India in international power politics. In the light of the statement, discuss how India can use its diplomatic and economic assets to enhance its strength as a regional and global player?

QUOTATIONS AND CAPTIONS

• If I destroy nature, I destroy myself as well. I lose my dignity.
• The inadequacy of monetary policy to address food-price-driven inflation has been recently flagged.
• As New Delhi pursues its ‘Act East Policy’, Vietnam has become a valuable partner in the Indo-Pacific region.
• The Indo-Pacific Oceans Initiative (IPOI) framework presents immense opportunities for India-Vietnam relations to aid regional progress and peace.
• A private 5G network can deliver higher efficiencies compared to a public telecom network. This will be critical as enterprises are increasingly digitising their processes.
• Heat stress in India is no longer a surprise, which is why it demands an all-hands-on-deck response.
• While stopping illegal mining, the government should ensure transparency in all aspects of mining and the open-market sale of sand, gravel and other construction material.
• India must use its diplomatic and economic assets to enhance its strength as a regional and global player.
• A long-drawn-out new Cold War — generating myriad political and economic problems — calls for an onerous balancing act by India in international power politics.
• An economic ideology which projects the market as the answer to mankind’s diverse needs and holds profit maximisation as its motto subsumes all other priorities.

50 WORD TALK

• It will be crucial for India to steer the global economic dialogue platform in a manner which is most beneficial for the region, and the country in decades to come. The global leaders from the G20 countries already recognise India’s growing importance in Southeast Asia and in overall world order. India is already in some form of bilateral, plurilateral or multilateral dialogue with most of G20, except for China, with which the relationship has turned frosty post the physical clashes in India’s North-western boundaries. The redeeming feature is that many G20 partners share similar concerns about China.

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 is in the news, you should do map work (marking those areas in maps and exploring other geographical locations nearby, including mountains, rivers, etc.) 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 main 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 293]

THE CONTEXT: According to the latest report released by the global media watchdog, Reporters Without Borders (RSF), India’s ranking in the 2022 World Press Freedom Index has fallen to 150 out of 180 countries. In last year’s report, India was ranked 142. The government has disagreed with the findings of the RSF that ranked India poorly. The government claimed that the report was based on small sample size and gave little or no importance to the “fundamentals of democracy”. This article explains in detail about the World Press Freedom Index and the reasons for the decline in India’s ranking in it.

WHAT IS THE WORLD PRESS FREEDOM INDEX?

• It has been published every year since 2002 by Reporters Sans Frontieres (RSF) or Reporters Without Borders.
• The ranking is based on a country’s performance in five broad categories: political context, legal framework, economic context, sociocultural context and safety of journalists.
• Based in Paris, RSF is an independent NGO with consultative status with the United Nations, UNESCO, the Council of Europe and others.
• The Index ranks countries and regions according to the level of freedom available to journalists. However, it is not an indicator of the quality of journalism.
• Reporters Without Borders index only deals with press freedom and does not measure the quality of journalism in the countries it assesses, nor does it look at human rights violations in general.

Methodology: The score is calculated on the basis of two components:

• A quantitative tally of abuses against journalists in connection with their work, and against media outlets.
• A qualitative analysis of the situation in each country or territory based on the responses of press freedom specialists (including journalists, researchers, academics and human rights defenders) to an RSF questionnaire available in 23 languages.

Each country or territory’s score is evaluated using five contextual indicators that reflect the press freedom situation in all of its complexity: political context, legal framework, economic context, sociocultural context and safety.

A subsidiary score ranging from 0 to 100 is calculated for each indicator. All of the subsidiary scores contribute equally to the global score. And within each indicator, all the questions and subquestions have equal weight.

FIVE BROAD CATEGORIES

POLITICAL CONTEXT

• The degree of support and respect for media autonomy vis-à-vis political pressure from the state or from other political actors.
• The level of acceptance of a variety of journalistic approaches satisfying professional standards, including politically aligned approaches and independent approaches.
• The degree of support for the media in their role of holding politicians and government to account.

LEGAL FRAMEWORK

• The degree to which journalists and media are free to work without censorship or judicial sanctions.
• The ability to access information without discrimination, and the ability to protect sources.
• The presence or absence of impunity for those responsible for acts of violence against journalists.

ECONOMIC CONTEXT

• Economic constraints linked to governmental policies (including the difficulty of creating a news media outlet, favouritism in the allocation of state subsidies.
• Economic constraints linked to non-state actors (advertisers and commercial partners).
• Economic constraints linked to media owners seeking to promote or defend their business interests.

SOCIO-CULTURAL CONTEXT

• Social constraints resulting from denigration and attacks on the press based on such issues as gender, class, ethnicity and religion.
• Cultural constraints, including pressure on journalists to not question certain bastions of power or influence or not cover certain issues.

SAFETY

Ability to gather news without unnecessary risk of:

• Bodily harm (including murder, violence, arrest, detention and abduction)
• The psychological or emotional distress that could result from intimidation, coercion, harassment, surveillance, doxing (publication of personal information with malicious intent), degrading or hateful speech, smears and other threats targeting journalists.
• Professional harm resulting from, for example, the loss of one’s job, the confiscation of professional equipment, or the ransacking of installations.

PERFORMANCE OF INDIA THROUGH GRAPHICAL REPRESENTATION

The chart shows India’s rankings across various categories in 2022. India ranked best in the legal framework category and worst in the safety of journalists category.

The chart shows India’s rank in the Press Freedom Index. While India has ranked consistently low over the past few years, its rank in 2022 plunged to the lowest the country has ever seen.

MAJOR FINDINGS OF THE REPORT

GLOBAL SCENARIO

• According to the World Press Freedom Index:2022, Norway (1st) Denmark (2nd), Sweden (3rd) Estonia (4th), and Finland (5th) grabbed the top five positions.
• North Korea, on the other hand, remained at the bottom of Reporters Without Borders’ list of 180 countries and territories.
• Russia was ranked 155th, down from 150th last year, while China advanced two places to 175th, according to Reporters Without Borders. China was ranked 177th in the world last year.

INDIA’S PERFORMANCE

• India has fallen eight places from 142nd to 150th in 2022 among the 180 countries.
• India’s position has been consistently falling in the index since 2016 when it was ranked 133.
• The reasons behind the fall in the ranking are the increased “violence against journalists” and a “politically partisan media”.
• The ranking categorized India as “one of the world’s most dangerous countries” for journalists, with an average of three or four journalists being assaulted in the course of their work each year.

INDIA’S NEIGHBOURS

• China was ranked at 175th position.
• The index placed Pakistan in 157th position, Sri Lanka in 146th, Bangladesh in 162nd and Myanmar in 176th position.
• Nepal has climbed up by 30 points in the global ranking at 76th position.

REASONS FOR THE DECLINE IN INDIA’S RANKING

POLITICAL MOTIVATION

• The report mentions that Indian authorities have targeted journalists and online critics in recent times driven by political motivation.
• The report further highlighted that women journalists critical of the government face a growing backlash on social media, including rape and death threats.

WRONGFUL PROSECUTION

• It also talked about journalists getting prosecuted under counterterrorism and sedition laws thereby cracking down on dissent.

THREATS AND VIOLENCE

• According to the report, India is also one of the world’s most dangerous countries for media persons.
• Journalists are exposed to all kinds of physical violence including police violence, ambushes by political activists, and deadly reprisals by criminal groups or corrupt local officials.
• The report says authorities have arrested journalists on spurious terrorism and sedition charges, and have routinely targeted critics and independent news organizations, including raiding their workplaces.

FAULTS IN POLICY FRAMEWORK

• Although the policy framework is protective in theory, it resorts to using defamation, sedition, contempt of court, and endangering national security against journalists critical of the government, branding them as “anti-national.”

KASHMIR ISSUE

• The extended ban on the internet in Jammu and Kashmir, and allegedly arbitrary suspension of Twitter accounts of those speaking against the government, were given as evidence of the government tightening its grip on media.

CRITICISM OF THE INDEX

• Multiple countries and commentators have raised concerns with both the WPFI criteria, and methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency. One of the primary concerns raised has been the opaqueness of the WPFI survey.
• Question-wise or category-wise scores used in computing scores for the five parameters are not made public, nor is the list of respondents provided.
• Similarly, credible sources are not available for quantitative data on abuse and violence against journalists, nor is any attempt made to clarify such data with Government or country-wise sources in any of the countries being ranked. When a limited sample of approximately 150 respondents and 18 NGOs are asked to analyse and respond to 83 questions for each country, the chances of biases and disconnect with the realities are high. Multiple countries and commentators have raised concerns with both the WPFI criteria and methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency.
• The Press Council of India (PCI), which acts as a watchdog of the press, by the press and for the press had rejected India’s ranking in the 2018 WPFI, stating that there was a lack of clarity on the inputs for the rankings, which were based solely on the perception and not on statistical data.
• Also when India’s rank is seen in the context of other countries, it may be noted that some of the most oppressive, authoritative regimes have found a place way ahead of India. RSF, this year, gained the audacity to put countries known for purging press freedom, killing journalists and reporters such as UAE, Hong Kong and Mexico way above India in its latest Press Freedom Index.

STATE OF PRESS FREEDOM IN INDIA

• Freedom of the press in India is subject to certain restrictions, such as defamation law, a lack of protection for whistleblowers, barriers to information access and constraints caused by public and government hostility to journalists. The press, including print, television, radio, and internet are nominally amended to express their concerns under the selected provisions such as Article-19 (which became effective from 1950), though it states freedom of “occupation, trade or business” and “freedom of speech and expression” without naming “press” in clause “a” and “g”. The article allows a journalist or media industries to cover any story and bring it to the audiences without impacting the national security of the country.
• To protect the intellectual, moral, and fundamental rights of the citizens, the government has taken several countermeasures to combat circulating fake news and restricting objectionable contents across the multiple platforms. The law of India prohibits spreading or publishing fake news through social or mass media, and could lead to imprisonment of a journalist or newspaper ban.
• The country’s news outlets and their associated journalists were allegedly charged with sedition and criminal prosecution charges by the authorities.
• The International Press Institute (IPI), an international organizations dedicated to the improvement of journalistic practices, claims that the government of India is responsible for restricting journalists covering COVID-19 pandemic-related reports in the country.
• In 2021, seven journalists were imprisoned in India, the highest in the last 3 decades.Data show that journalists enjoy less freedom than citizens in the country.At least three journalists were killed in 2017 in connection with their jobs.
• Reporters Without Borders stated Gauri Lankesh a proponent of secularism and a critic of right-wing forces was shot dead outside her house. A member of a Hindu nationalist group was arrested for killing Lankesh.
•  A report stated that between 2014 and 2019, 40 journalists were killed and at least 198 severe attacks on journalists were reported, of which, 36 occurred in 2019 alone.
• The media have consistently upheld the personality cult of the leaders since the country’s formation. It reported on the activities of the leader, regularly reporting on their political campaigns, frequently including “advertisements” to ruling parties through radio, television and Newspaper display ads.

THE WAY FORWARD:

TRANSPARENT AND UNBIASED INDEX

• Concerns have been raised with both the WPFI criteria, methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency. One of the primary concerns raised has been the opaqueness of the WPFI survey. Thus RSF needs to resolve this issues and need to make the index more transparent and unbiased.

PROPER DEFINITION

• RSF should update its definition of press and account in its ranking methodology for differences between print, electronic and TV journalists, and social media commentators.

FREEDOM OF EXPRESSION

• The Indian state should respect the right to freedom of expression and freedom of media (Article 19), which is the fourth pillar of democracy. However, Freedom of the press is also not absolute.

IMPARTIAL INVESTIGATIONS

• Concerned authorities should conduct independent and impartial investigations into allegations of threats and attacks targeting journalists and critics.

INDEPENDENT REGULATORY BODIES

• There is a need to establish independent press councils, media watch groups, ombudsmen, and other media self‐regulatory bodies autonomous from the government.

REGULATION FRAMEWORK

• There are disastrous effects of misinformation chaos including globalised and unregulated online information spaces that encourage fake news and propaganda. The state should have a robust regulatory framework for the same.

PRESS AND DEMOCRACY

• Freedom of the press is crucial to the functioning of a vibrant democracy hence the government should ensure its wellbeing

PROPER GUIDELINES

• The government should lay guidelines for the frequent internet shutdowns and promote scientifically verifiable facts rather than misinformation on the digital platforms.

THE CONCLUSION: SDG Target 16.10 enjoins governments and all stakeholders to ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements. An objective measure of press freedom across countries and a well-coordinated multi-stakeholder approach towards establishing press freedoms are essential towards improving democratic outcomes like transparency, accountability, people’s participation etc. With these overarching goals in mind, Reporters Without Borders must use its unique position and expertise to evolve a globally acceptable definition of press freedom by engaging with all countries which it ranks and strive to remove inconsistencies and biases in its ranking methodology and provide clarity on its funding sources. Also with systemic censorship on the rise and journalists facing constant threats from the government as well as other political outfits, the future of independent journalism in India today is in the hands of those institutions that have been struggling to retain their independence and promote journalistic rights: most importantly the courts, but also editors and journalists’ associations and independent news media themselves.

VALUE ADDITION

WORLD PRESS FREEDOM DAY

• The day was proclaimed by the UN General Assembly in 1993, following the recommendation of UNESCO’s General Conference in 1991.
• The day also marks the 1991 Windhoek Declaration (adopted by UNESCO).
• It aimed toward the ‘development of a free, independent and pluralistic press’.
• The theme for 2022:Journalism under digital siege

FREEDOM OF PRESS IN INDIA

• The Constitution, the supreme law of the land, guarantees freedom of speech and expression under Article 19, which deals with ‘Protection of certain rights regarding freedom of speech, etc.
• Freedom of the press is not expressly protected by the Indian legal system but it is impliedly protected under article 19(1) (a) of the constitution, which states – “All citizens shall have the right to freedom of speech and expression”.
• In 1950, the Supreme Court in Romesh Thappar v. State of Madras observed that freedom of the press lay at the foundation of all democratic organisations.
• However, Freedom of the press is also not absolute. It faces certain restrictions under Article 19(2), which are as follows-

Matters related to interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, defamation or incitement to an offence.

QUESTION FOR MAINS EXAMINATION:

1. Discuss the salient features of the World Press Freedom Index. How far do you agree with the view that the press freedom in India is on a continuous decline as reflected in the Index?
2. India’s ranking is continuously declining in the world press freedom index. Analyse the reasons behind it and also suggest measures to ensure the freedom of the press in the country.

THE INDIAN POLITY AND GOVERNANCE

1.THE DEMAND FOR ‘TRIBAL’ STATUS FOR HIMACHAL’S TRANS-GIRI AND ITS HATTI COMMUNITY

THE CONTEXT: The Centre is reported to be considering granting “tribal” status to the Trans-Giri region of Himachal Pradesh’s Sirmaur district. The reported proposal, if followed through, would mark a movement away from the government’s earlier position on the matter.

THE EXPLANATION:

The demand to declare Trans-Giri a tribal area is old — and is tied up with the demand for Scheduled Tribe (ST) status for the Hatti community which lives in the area.

The community and the land

• The Hattis are a close-knit community who take their name from their traditional occupation of selling home-grown crops, vegetables, meat, and wool at small-town markets known as ‘haats’. Hatti men traditionally don a distinctive white headgear on ceremonial occasions.
• According to sources, the Hattis live in 154 panchayat areas, and that member of the community numbered 2.5 lakh in the 2011 Census. The present population of the Hattis is estimated at around 3 lakh.
• The Hattis are governed by a traditional council called ‘khumbli’ which, like the ‘khaps’ of Haryana, decide community matters.

Demand for tribal status

• The list of STs in Himachal Pradesh includes Gaddis, Gujjars, Kinnaras (Kinnauras), Lahaulas, Pangwalas, and some other smaller tribes. The bulk of the tribal population lives in remote, high altitude areas in the districts of Lahaul, Spiti, Kinnaur, and Chamba. The tribal population of the state was 3.92 lakh (about 6% of the total) in 2011.
• The Hattis have been demanding ST status since 1967, when tribal status was accorded to people living in JaunsarBawar in Uttarakhand, which shares a border with Sirmaur district. Over the years, various ‘mahakhumblis’ passed resolutions pressing the demand.
• Since getting the benefit of reservations, the JaunsarBawar area has produced a sizable number of civil servants. Due to topographical disadvantages, however, the Hattis living in the Kamrau, Sangrah, and Shilliai areas of Himachal Pradesh have lagged behind in both education and employment.

VALUE ADDITION:

What are the benefits for being accorded as Scheduled Tribe?

• The Indian Constitution ensures certain protection for communities deemed as having Scheduled Tribe (ST) status. However, which groups should be accorded that status has been contentious. Getting ST status means that members of the group have access to highly desired tangible benefits such as political representation, reserved seats in schools, and government jobs.

Who has the power to declare a community/Tribes as Scheduled Tribe?

• The Indian Constitution only states that STs are specified by the President after consultation with the Governor; it does not specify specific criteria.
• According to the Ministry of Tribal Affairs, the criterion—while not spelled out in legislation—“is well established,” and includes indication of “primitive” traits, distinctive culture, geographical isolation, “shyness of connect” with the community at large, and “backwardness.” These general standards were established following the definitions of the 1931 Census, the reports of the First Backward Classes Commission 1955, Kalelkar Advisory Committee, and Revision of SC/ST lists by the Lokur Committee. However, more than a half-century later, these broad criteria leave a lot of discretion.

THE INTERNATIONAL RELATIONS

2.A MAJOR INDIA-AFRICA CONCLAVE IS TAKING PLACE IN NEW DELHI — WHY IS IT IMPORTANT?

THE CONTEXT: Recently,the High-level diplomats from several African countries met Vice President of India for Investment summit in New Delhi.

THE EXPLANATION:

The summit

• Forty high-level ministers from 17 countries, including Cameroon, Burkina Faso, Eswatini, Republic of the Congo, Ethiopia, Gabon, Equatorial Guinea, Ghana, Niger, Malawi, Mauritius, Sudan, Namibia, Nigeria and Sierra Leone, are participating in the two-day summit.
• The CII-EXIM Bank Conclave on India-Africa Growth Partnership was launched in 2005 with the support of India’s Ministry of External Affairs and Ministry of Commerce & Industry to encourage the development of private investment from India in African countries.
• This is the 17th edition of the conclave. Over the years, it has “emerged as one of the largest congregations of senior ministers, policy makers and business leaders from Africa and India, cutting across sectors”, and “played a pivotal role in encouraging Indian companies to establish and grow their footprint in Africa”.

This year’s conclave focuses on infrastructure development and trade finance, education and training, agriculture and food processing, consultancy services, and healthcare in addition to other areas where Indian companies have steadily increased their presence over the years in Africa.

The significance

• Trade between the African subcontinent and India increased from $7.2 billion in 2001 to $59.9 billion in 2017, making India the continent’s fourth-largest national trading partner, according to Exim Bank and the African Export-Import Bank (Afriexim Bank). Trade with India accounted for more than 4 per cent of total African trade in 2017.
• Data from the Ministry of Commerce and Industry show bilateral trade between India and the 48 countries of sub-Saharan Africa was valued at $46.82 billion in 2020-21, down from $55.70 billion in 2019-20. India has a negative trade balance with sub-Saharan Africa, according to the Ministry .

Duty Free Tariff Preference (DFTP) is a unilateral non-reciprocal preferential tariff scheme provided by the Government of India for the least developed countries (LDCs). The scheme was officially introduced on 13 August 2008.

• In a statement issued on Africa Day on May 25, the Ministry of External Affairs said that 38 African nations have benefited from India’s Duty-Free Tariff Preference (DFTP) scheme which provides duty free access to 98.2 per cent of India’s total tariff lines.
• Lines of Credit (LoCs) worth $12.26 billion have so far been extended to African countries, making them the second-largest recipient of India’s concessional loans, the MEA said.

Key countries

• Mauritius is the first and only African country so far to have a CECPA (Comprehensive Economic Cooperation and Partnership Agreement) with India, an agreement that aims at building trade ties between the two countries.
• Political stability and rapid economic recovery post Covid-19 have made resource-rich Namibia in southern Africa attractive for foreign investment, the conclave’s website says. The country has rich deposits of uranium, diamonds, copper, phosphates and other minerals.
• Over the years, Indian enterprises have invested in energy, healthcare, and agriculture sectors, as well as the business of diamond cutting and polishing, in Namibia. Analysts expect these sectors to grow over the next few years.

THE SOCIAL ISSUES AND SOCIAL JUSTICE

3.WHY DO PEOPLE GIVE UP THEIR INDIAN CITIZENSHIP, AND WHERE DO THEY GO?

THE CONTEXT: Answering to an unstarred question in Lok Sabha (Monsoon session 2022) the Ministry of Home Affairs stated that over 1.6 lakh Indians relinquished their Indian citizenship in 2021.

THE EXPLANATION:

• The numbers marked a sharp increase in comparison to the 85,256 people who gave up their Indian citizenship in the Covid-hit year of 2020, and a somewhat smaller increase over the 1.44 lakh who surrendered their passports in 2019.
• According to government data, the largest numbers of Indians who relinquished Indian citizenship in 2021 went to the United States (78,284), followed by Australia (23,533), Canada (21,597), and the United Kingdom (14,637).
• Smaller numbers of those who gave up their Indian citizenship chose Italy (5,986), New Zealand (2,643), Singapore (2,516), Germany (2,381), the Netherlands (2,187), Sweden (1,841), and Spain (1,595).
• India does not allow dual citizenship, and taking up the citizenship of another country automatically results in the cancellation of Indian citizenship.

Why do people renounce citizenship?

• The reasons vary widely from country to country, and among socio-economic and ethnic groups. In general, around the world, people leave their countries for better jobs and living conditions, and some are pushed out by climate change or unfavourable political situations at home.
• As the Indian diaspora around the world has increased in numbers, with newer generations holding passports of other countries, some older Indians are choosing to leave to be with family settled overseas. In some high-profile cases — such as that of jeweller Mehul Choksi — people who leave India may be fleeing the law or fear of legal action for alleged crimes.
• A 2020 report by the Global Wealth Migration Review showed that high net worth individuals around the world who renounce citizenship acquired at birth may do so for reasons of rising crime rates or the lack of business opportunities at home. “It can also be a sign of bad things to come as (they) are often the first people to leave — they have the means to leave unlike middle class citizens,” the report said.
• Among the other reasons why people make the decision to migrate to other countries and to eventually acquire citizenship listed by the Global Wealth Migration Review were: safety of women and children, lifestyle factors like climate and pollution, financial concerns including taxes, better healthcare for families and educational opportunities for children, and to escape oppressive governments.

Why do people choose certain specific countries when they leave India?

• Although the Global Wealth Migration Review focuses on global data, some of its listed factors may also be applicable to Indians specifically. In general, countries where Indians have been migrating for long or where people have family or friends would be more automatic choices, as would be considerations such as easier paperwork and more welcoming social and ethnic environments.
• The report highlighted the global popularity of Australia as a country that has been witnessing high inflow numbers. Factors specific to Australia that made it a popular destination included its points-based immigration system that favoured the wealthy and high-earning professionals like doctors, lawyers, engineers, and accountants, the report said.
• The report said Australia may have been a top choice, in part because of English being the spoken language, in addition to its healthcare system, which unlike the US was not as complex or expensive for older individuals of high net worth.
• The report listed Singapore as the emerging “top wealth management centre” in Asia, marking its potential for attracting higher numbers of these individuals.

THE ECONOMIC DEVELOPMENTS

4.WHAT RS 80 TO A DOLLAR MEANS?

THE CONTEXT: The Indian rupee breached the psychologically significant exchange rate level of 80 to a US dollar in early trade on Tuesday. It recovered some ground to close at 79.90.

THE EXPLANATION:

Since the war in Ukraine began, and crude oil prices started going up, the rupee has steadily lost value against the dollar. There are growing concerns about how a weaker rupee affects the broader economy and what challenges it presents to policymakers, especially since India is already grappling with high inflation and weak growth.

What is the rupee exchange rate?

• The rupee’s exchange rate vis-à-vis the dollar is essentially the number of rupees one needs to buy $1. This is an important metric to buy not just US goods but also other goods and services (say crude oil) trade in which happens in US dollars.
• Broadly speaking, when the rupee depreciates, importing goods and service becomes costlier. But if one is trying to export goods and services to other countries, especially to the United States, India’s products become more competitive because depreciation makes these products cheaper for foreign buyers.

How bad is it for the rupee?

• According to Crisil data, shows the rupee’s exchange rate against the dollar. The dotted line shows the long-term trend of depreciation. If the rupee depreciates at a rate faster than the long-term average, it goes above the dotted line, and vice versa. In the last couple of years, the rupee has been more resilient than the long-term trend. The current fall has brought about a correction.
• Another thing to note is that, at least as of now, the rupee is still more resilient (that is, it has remained relatively strong against the dollar) than it was in some of the previous crises such as the Global Financial Crisis of 2008 and the Taper Tantrum of 2013.
• Moreover, the US dollar is just one of the currencies Indians need to trade. If one looks at a whole basket of currencies, then data suggests the rupee has become stronger (or appreciated against that basket). In other words, while the US dollar has become stronger against all other major currencies including the rupee, the rupee, in turn, has become stronger than many other currencies such as the euro.

Why are the rupee-dollar exchange rate and forex reserves falling?

• Balance of Payment (BoP): The BoP is essentially a ledger of all monetary transactions between Indians and foreigners. Here it is shown in US dollar terms. If a transaction leads to dollars coming into India, it is shown with a positive sign; if a transaction means dollars leaving India, it is shown with a minus sign.
• The BoP has two broad subheads (also called “accounts”) — current and capital — to slot different types of transactions. The current account is further divided into the trade account (for export and import of goods) and the invisibles account (for export and import of services). So if an Indian buys an American car, dollars will flow out of BoP, and it will be accounted for in the trade account within the current account.
• If an American invests in Indian stock markets, dollars will come into the BoP table and it will be accounted for under FPI within the capital account. The important thing about the BoP is that it always “balances”.

What will be the effect on the economy?

• Since a large proportion of India’s imports are dollar-denominated, these imports will get costlier. A good example is the crude oil import bill. Costlier imports, in turn, will widen the trade deficit as well as the current account deficit, which, in turn, will put pressure on the exchange rate.
• On the exports front, however, Economists noted that it is less straightforward. For one, in bilateral trade, the rupee has become stronger than many currencies. In exports that happen via the dollar, “Also, the noted since, the rupee is not the only currency weakening against the dollar, the net effect will depend on how much has the other currency lost to the dollar”. “If the other currency has lost more than the rupee, the net effect could be negative.”

THE SCIENCE AND TECHNOLOGY

5.WHAT IS THAT NOODLE TANGLE ON MARS?

THE CONTEXT: Recently, NASA’s Perseverance Rover has beamed back from Mars a picture of a “strange tangle” — an object that looks like a partially uncoiled ball of string or, in the imagination of some, a rather long and thin noodle.

THE EXPLANATION:

What’s this picture?

• The picture shows the object — string or noodle — between two Martian rocks, a smaller, flat one to the right and a larger one to the left. Another, zoomed-out, view shows the scale of the object, lying directly beneath the Perseverance Rover close to its wheels, with other rocks and a bit of the Martian landscape also in the frame.
• The image was taken on July 12 by the Perseverance Rover’s Front Left Hazard Avoidance Camera A. As the rover moves, its six HazCams detect hazards like large rocks, trenches, or sand dunes.

Why is the picture odd?

For obvious reasons — unless you don’t have difficulty imagining the existence of Martians who both love and litter their spaghetti. NASA has said nothing officially about what the object might be, or how it got in the frame of Perseverance’s HazCam.

And why it probably isn’t…

• The object is likely to be space junk from NASA’s Mars mission. Such extra-terrestrial trash has been spotted on the red planet earlier too.
• The un-Martian objects imaged on Mars so far include the parachute used by Perseverance during its landing in February last year (2021).
• In June, the rover captured a shiny object on the Martian ground, which Perseverance said on Twitter was “something unexpected” — before identifying it as “part of a thermal blanket — a material used to control temperatures” during its descent to the surface last year.

VALUE ADDITION:

NASA’S PERSEVERANCE

• NASA’s Perseverance rover is exploring the Jezero Crater on Mars and attempting to collect its first rock samples.
• It was launched in 2020 aboard a United Launch Alliance Atlas V.

Why is this mission significant?

• It carried a unique instrument, MOXIE or Mars Oxygen ISRU Experiment: which for the first time manufactured molecular oxygen on Mars using carbon dioxide from the carbon-dioxide-rich atmosphere (ISRU means In Situ Resource Utilization: or the use of local resources to meet human needs or requirements of the spacecraft).
• It carried Ingenuity, the first ever helicopter to fly on Mars.
• It is the planned first step to bring back rock samples from Mars for analysis in sophisticated laboratories on Earth: with the goal of looking for biosignatures: or signatures of present or past life.

These are some of the key mission objectives:

• Look for signs of ancient microbial life.
• Collect Martian rock and dust samples for later return to Earth.
• Deliver an experimental helicopter.
• Study the climate and geology of Mars.
• Demonstrate technology for future Mars missions.

THE PRELIMS PERSPECTIVE

6.ONE WORD A DAY – RCTS

THE CONTEXT: Recently, the Economist and Nobel laureate Michael R Kremer has said that for a diverse country like India randomised controlled trials (RCTs) must be carried out at multiple sites for better analysis and to see differences across states.

THE EXPLANATION:

What is RCT (Randomised Controlled Trials)?

• It is a research design for experimental studies, which economists Michael R Kremer, Abhijit Banerjee and Esther Duflo used in their research.
• They went on to win the 2019 Nobel Prize winner in Economics.
• They had made use of RCT for their research on poverty.
• It is usually undertaken to study the effects of a new entrant in an environment.
• According to Kramer, the idea involved in RCT is to experiment at multiple sites and then do a better analysis and see the differences across the sites.
• Simply put, RCTs involve dividing a population into smaller groups, in order to comparatively see the outcomes of an external stimulus.

What did the noble citation say of the trio’s work?

“The research conducted by this year’s laureates has considerably improved our ability to fight global poverty…Their new experiment-based approach has transformed development economics.”

 What is an example of randomised controlled trials?

Example:

Aim of a study: To understand whether a free grains distribution scheme helped improve the nutrition levels among people living in a district.

Objective: To understand what the overall impact of introducing something new could be.

Steps:

1. Researchers will first create two groups within the population, and then put people into those groups randomly.
2. One group (called the control group) does not receive the grains or the external stimulus, while the other group (treatment group) does.
3. After a designated period of time, details of how both the groups are doing would be collected.

What has been one successful example of RCTs application?

• RCTs application showed neither providing more textbooks nor free school meals improved learning among students.
• Instead, in schools in Mumbai and Vadodara, the biggest problem was that teaching was not sufficiently adapted to the students’ needs.
• The Nobel laureates had billed RCTs as a method to focus on more day-to-day answers to problems of poverty and deprivation, such as the delivery of basic amenities.

Why are RTCs criticised?

• Critics say the method cannot be used in all cases, while others argue it is fundamentally flawed.
• Angus Deaton, the winner of the Economics Nobel in 2015, had said “randomisation does not equalise two groups”, and warned against over-reliance on RCTs to frame policies.
• Like him, many believe that two or more groups carved out from a singular population living in an area may not be totally random.
• There may be more women in one group, or one group may have more people having some kind of distinctiveness that affects the result.
• As a result, the outcomes may not give an accurate view, and the very use of a scientific experiment tool in social sciences was questioned.
• Further, RCTs also cannot be used to study something after it has happened, they need to be planned beforehand.
• And, while RCTs show results for a particular population in an area, it may not be proof that the same results will be achieved elsewhere, especially if the sample size is not big or the trial

However, many agree that for a limited purpose RCTs have helped to tweak systems and improve outcomes.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q.Consider the following statements in the context of Randomised Controlled Trials (RCT):

1. It is usually undertaken to study the effects of a new entrant in an environment.
2. Abhijit Banerjee and Esther Duflo used in their research and went on to win the 2019 Nobel Prize winner in Medicine.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

ANSWER FOR 19TH JULY 2022

ANSWER: D

EXPLANATION:

• Statement 1 is incorrect.National awards such as Bharat Ratna, Padma Vibhushan, Padma Bhushan and Padma Shri do not amount to titles within the meaning of Article 18(1) of the Constitution and thus are not to be used as prefixes or suffixes to the name of the recipient in any manner.
• Article 18(1) abolishes all titles. It prohibits the State to confer titles on anybody whether a citizen or a non-citizen. Military and academic distinctions are, however, exempted from the prohibition. Thus, a university can give title or honor on a man of merit.
• Statement 2 is incorrect. Padma Awards were instituted in 1954 to be awarded to citizens of India in recognition of their distinguished contribution in various spheres of activity.
• The government suspended the practice of granting the Padma awards for two years in 1977. It was again suspended during mid-1992 when 2 PILs were filed in the High Courts of India
• They are given in three categories: Padma Vibhushan (for exceptional and distinguished service), Padma Bhushan (distinguished service of higher-order) and Padma Shri (distinguished service).
• Statement 3 is incorrect. A maximum of 3 people can be awarded the Bharat Ratna. The total number of Padma awards to be conferred each year is limited to 120. But the count excludes posthumous awards and any non-resident Indian or Overseas Citizen of India or foreign-based winners.

1. Steps to undertake a beautiful life journey READ MORE
2. All the dos and don’ts READ MORE

1. Modi Govt Plans to Dilute law Entailing Jail-term for Damaging Reserve Forests and Trees READ MORE
2. What the Controversial 1972 ‘Limits to Growth’ Report Got Right READ MORE

1. Unplanned population growth will result in chaos READ MORE
2. Why India needs a new law to combat the deaths of workers in sewers and septic tanks READ MORE

1. No inner-party democracy: Unlike their counterparts in the U.K., MPs in India have no autonomy to question and challenge their party leadership READ MORE
2. A new legislation that mirrors the old: The New Drugs, Medical Devices and Cosmetics Bill is antiquated and needs to be revised READ MORE
3. Personal Data Protection Bill: The irony in localizing READ MORE
4. Fate of human rights in India: Dormant for too long, civil society must learn to protect its exemplars READ MORE
5. Indian democracy: work in progress? READ MORE
6. Amending an FIR is Illegal, and Inconsistent with Natural Justice READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Review spectrum pricing mechanism for captive users to incentivise ministries: CAG to DoT READ MORE
2. In 2021, over 1.6 lakh Indians renounced citizenship READ MORE
3. UK breaks record for highest temperature as Europe sizzles READ MORE
4. Pythagorean geometry in Vedic-era texts, centuries before Pythagoras READ MORE
5. Officials count 122 saltwater crocodile nests in Bhitarkanika READ MORE
6. Eight months after rolling back farm laws, Centre sets up MSP panel READ MORE
7. How Himalayan glaciers are resisting global warming READ MORE
8. Understanding cryptocurrencies READ MORE

Main Exam

GS Paper- 1

1. Modi Govt Plans to Dilute law Entailing Jail-term for Damaging Reserve Forests and Trees READ MORE
2. Unplanned population growth will result in chaos READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. No inner-party democracy: Unlike their counterparts in the U.K., MPs in India have no autonomy to question and challenge their party leadership READ MORE
2. A new legislation that mirrors the old: The New Drugs, Medical Devices and Cosmetics Bill is antiquated and needs to be revised READ MORE
3. Personal Data Protection Bill: The irony in localizing READ MORE
4. Fate of human rights in India: Dormant for too long, civil society must learn to protect its exemplars READ MORE
5. Indian democracy: work in progress? READ MORE
6. Amending an FIR is Illegal, and Inconsistent with Natural Justice READ MORE

SOCIAL ISSUES

1. Why India needs a new law to combat the deaths of workers in sewers and septic tanks READ MORE

INTERNATIONAL ISSUES

1. With Global Discord at Its Peak, India Braces Itself for G20 Presidency READ MORE
2. Modi said Neighbourhood First. Sri Lanka crisis is India’s chance to prove it READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. The new agriculture panel raises questions READ MORE
2. The trade policy India needs READ MORE
3. Caution over rupee: RBI must keep an eye on its reserves as dollar strengthens READ MORE
4. The GDP Paradox~I READ MORE
5. Insolvency code is one of India’s success stories. But it now needs a new life READ MORE

ENVIRONMENT AND ECOLOGY

1. What the Controversial 1972 ‘Limits to Growth’ Report Got Right READ MORE

DISASTER MANAGEMENT

1. Building resilience to destructive cloudbursts READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Steps to undertake a beautiful life journey READ MORE
2. All the dos and don’ts READ MORE

Questions for the MAIN exam

1. ‘The population growth can be a double-edged sword, and the India needs to maximise its potential’. Comment.
2. The government needs to weigh the pros and cons of population growth and choose the right path. Unplanned growth will only result in chaos. Discuss the statement.
3. ‘India’s Neighbourhood First policy is urgently in need of navigational guidance that political prudence must provide’. Critically Examine.

QUOTATIONS AND CAPTIONS

• Human rights rest on dignity. The dignity of man is an ideal worth fighting for and worth dying for.
• The New Drugs, Medical Devices and Cosmetics Bill is antiquated and needs to be revised.
• A committee has been constituted to promote zero budget-based farming, change crop patterns and make MSP more effective and transparent. Vested interests need to be eliminated.
• Overregulation by the likes of UGC and excessive demands of laws like the RTE Act are reasons many educational institutions covet a minority status.
• Integration with global value chains will require a rethink of our high and uncertain tariffs as well as bolder trade alliances.
• A revamp of agriculture education is vital to attracting talent both at the student and faculty levels.
• For success in spirituality, we need to become rich in the universal values.
• Ensuring preparatory measures before the rainy season assists in minimising loss of human and animal lives and has to be made a practice for a good beginning every year.
• The population growth can be a double-edged sword, and the India needs to maximise its potential.
• The government needs to weigh the pros and cons of population growth and choose the right path. Unplanned growth will only result in chaos.
• Since GDP is a gross value, the implications of the negative factors which erode the actual value don’t get netted, and hence there is a distortion.
• India’s efforts at isolating Pakistan are in many ways rooted in the trajectory of the country’s domestic politics and on account of the continued use of terrorism as a foreign policy tool against it.
• India must also recognise that its Neighbourhood First approach cannot be effective without Pakistan. This policy is urgently in need of navigational guidance that political prudence must provide.

ESSAY TOPIC

• Human rights rest on dignity.

50 WORD TALK

• The emphasis has been on post-disaster response, rescue, evacuation and relief rather than following the disaster management continuum that lays more stress on pre-disaster early warning, mitigation and risk reduction of disaster events. Such methodology is safe, economically feasible and advantageous. Cloudburst hotspots have to be identified, risk mapping done and management initiated from these places.

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 292]

THE CONTEXT: In May 2022, the Ministry of Electronics and Information Technology (MeitY) released a revised Draft National Data Governance Framework Policy(NDGFP). This policy aims to enhance access, quality, and use of data, in line with the current and emerging technology needs. In this article, we will study the important aspects of this policy from the UPSC examination perspective.

THE RATIONALE FOR THE NDGFP

DIGITALISING THE GOVERNMENT

• The goal of the government is to provide better and more responsive governance to Indian residents.
• This depends on the ability to use data to guide governance, programme evaluation, and service delivery.
• This data-driven governance is a key component of the government’s Digital Government strategy which requires a comprehensive policy.

HARNESS THE POWER OF DATA

• The government data is currently managed, stored and accessed in differing and inconsistent ways across different government entities.
• This reduces the efficacy of data-driven governance, and prevents an innovative ecosystem of data science, analytics etc.
• The power of this data must be harnessed for more effective Digital Government, public good and innovation.
• This requires a National Data Governance Framework Policy (NDGFP).

POST-COVID DIGITISATION

• In the post-COVID-19 era, the digitization of government is accelerating faster.
• With this accelerated digitization, the volume and velocity of data generated is also increasing exponentially.
• This data can be used in turn to improve citizens’ experience and engagement with the government and governance as a Digital Nagrik.

CRITICISM OF EARLIER DRAFT

• The NDGFP comes after strong criticism of the previous ‘Draft India Data Accessibility and Use Policy, 2022’, which was opened for public consultation in February 2022.
• It proposed to permit the licensing and sale of public data by the government to the private sector, which was strongly criticized.(READ AHEAD).

DRAFT INDIA DATA ACCESSIBILITY AND USE POLICY, 2022

The original Draft India Data Accessibility and Use Policy, 2022 was heavily criticised for its price and licencing features, which allowed the government to profit from databases.  It was stated in the draft that, detailed datasets which have undergone ‘value addition/transformation’ and qualify for monetization, may be priced appropriately.The document, however, did not go into detail about the value enhancements that were being considered or the qualifying criteria that would allow these datasets to be marketed. It was also pointed out that allowing government departments/agencies to monetize datasets would go against the policy’s purpose, which is to create an open and accessible database. The NDGFP does not have these pricing and licencing restrictions. Furthermore, while the previous draft stated that certain datasets classed as negative list datasets would be non-shareable, this is no longer the case in the new Draft.

THE OBJECTIVES OF THE NDGFP

• To modernize and transform government data collection and management processes and systems with the goal of improving governance through a whole-of-government approach to data-driven governance.
• To have standardized data management and security standards across the whole Government;
• To promote transparency, accountability, and ownership in non-personal data and datasets access. For purposes of safety and trust, any non-personal data sharing by any entity can be only via platforms designated and authorized by Indian Data management Office(IDMO).
• To build a platform that will allow dataset requests to be received and processed.
• To build Digital Government goals and capacity, knowledge and competency in Government departments and entities.
• To set quality standards and promote the expansion of India datasets program and overall non-personal datasets ecosystem.
• To ensure greater citizen awareness, participation and engagement.

THE SALIENT FEATURES OF THE NDGFP

APPLICABILITY

• This Policy will be applicable to all Central Government departments and entities.
• The rules and standards prescribed will cover all data collected and being managed by any government entity,
• This policy shall be applicable to all non-personal datasets, rules, and standards governing its access and use by researchers and startups.
• State Governments shall be encouraged to adopt the provisions of the policy and rules, standards, and protocols.

DATA PRIVACY AND SECURITY

• The NDGFP standards and rules will ensure data security and informational privacy.

INSTITUTIONAL FRAMEWORK

• An “India Data Management Office (IDMO)” shall be set up under the Digital India Corporation (“DIC”) under MeitY and shall be responsible for framing, managing and periodically reviewing and revising the policy.

THE FUNCTIONS OF THE INDIA DATA MANAGEMENT OFFICE (IDMO)

IDENTIFICATION OF DATASETS

• IDMO, which will be the policy monitoring and enforcement agency shall prescribe rules and standards for government entities to identify and classify the datasets available to them and build a vibrant and large database of the datasets.

DATA STORAGE AND RETENTION RULES

• An evolving set of data storage and retention standards shall be specified by IDMO for standardizing them across Government entities.

DATA ANONYMIZATION STANDARDS AND RULES

• Further to the identification of datasets, rules and standards for data anonymization (for both government and private bodies) shall be developed by IDMO to ensure the informational privacy of the data.

FINALIZE METADATA STANDARDS

• Metadata standards and data quality standards shall be finalized by IDMO that cut across sectors.
• IDMO shall also take steps to ensure compliance with the relevant domain-specific standards by Ministries/ Line Departments.

INDIA DATA SETS PLATFORM

• The IDMO shall design, operate and manage the India Datasets Platform.
• This will process requests and provide access to the non-personal and/or anonymized datasets to Indian researchers and Start-ups

PROTOCOL NOTIFICATION

• IDMO shall notify protocols for sharing of non-personal datasets while ensuring privacy, security and trust.
• Rules to provide data on priority or exclusively to Indian/India-based requesting entities shall also be developed

OTHERS

• Publishing disclosure norms for large-size datasets, ensuring ethical and fair use of data, establishing a framework for user charges, coordination and capacity building, setting up a grievance redressal mechanism etc will be other functions of IDMO.

WHAT ARE THE CONCERNS ASSOCIATED WITH THE DRAFT POLICY?

CRUCIAL MISSING DETAILS

• Details of data privacy, security, intellectual property, data monopoly etc appear sketchy.
• This is because the draft merely lays out broad parameters and the precise conditions of this data-sharing regime have yet to be revealed.
• The NDGFP draft states that its standards and rules will ensure data security and information privacy, but doesn’t state in detail how the government plans to safeguard data privacy.

LACK OF A DATA PROTECTION LAW

• The Data Protection Bill, 2021 has not been passed and the regulations for the protection of non-personal data are not finalized which can create challenges in policy implementation.

POTENTIAL PRIVACY BREACHES

• No technical threshold for data anonymization is specified and hence it will not be possible to categorically stipulate what constitutes anonymized data, leading to privacy breaches.

USER CHARGES AND DATA MONOPOLY

• The NDGFP has done away with the ‘monetization’ provisions of the previous Draft India Data Accessibility and Use Policy.
• But the current emphasis on “user charges” may not ensure a non-monopolistic data market fair for all market players.

IMPLEMENTATION CHALLENGES

• Streamlining data sets across government agencies and breaking down data silos is a massive challenge for the government.
• This will necessitate transformative capacity creation, as well as changes in government officials’ behaviour which is a monumental task.

PRIVATE PLAYERS’ PARTICIPATION

• Private entities acquire and retain enormous amounts of personal data; if this data is anonymized and provided to the platform, the benefits of the repository generated can be maximized.
• However, this initiative may not entice private firms to participate voluntarily without any incentives or benefits being supplied in exchange.

IGNORE THE EXPERT GROUP STUDY

• An expert group has already identified concerns linked with non-personal data in its study.
• It stated that no anonymization technique is perfect and that privacy concerns arising from the potential re-identification of anonymized personal data should be addressed.
• However, the amended text makes no mention of this.

THE WAY FORWARD:

1. The Draft may be revised according to suggestions received from relevant stakeholders to address the concerns raised and to bring further improvements.
2. The passing of the Data Protection Law and other regulations need to be fast-tracked and simultaneously implemented with the NDGFP.
3. As the IDMO is proposed to a powerful central body, its composition in a fair manner is crucial to ensure transparency and privacy of individuals which as per the current Draft is not satisfactorily explained.
4. The Draft says that the IDMO shall formulate all data/datasets/metadata rules, standards, and guidelines in consultation with Ministries, State Governments, and industry. This must be done in letter and spirit in a meaningful manner.
5. Nudging of private players who has a large amount of non-personal data to enthusiastically participate in the programme through incentives etc. can be explored.
6. Structural reforms in government departments are long overdue without which the whole-of-the-government approach to data governance might remain sub-optimal. Also, the bureaucratic pathologies/dysfunctionalities leading to behavioural issues need to be overcome.

THE CONCLUSION: Although the NDGFP and the previous draft are structurally similar, the NDGFP appears to be a step forward because it does not include the contentious data licensing and price clauses. The NDGFP indicates that the Indian government recognizes the enormous value that can be extracted from non-personal data.Specific laws managing data anonymization standards, rules governing conditions of access to such data by private actors, etc. will be critical to creating a secure and transparent data regime and thereby realising the goals of the policy.

Questions:

1. Critically analyze the Draft National Data Governance Framework Policy, 2022.
2. “Data has become a critical resource for the economy and is the key for advancing decision making, governance and service delivery by government and private sector”. How far do you think that the Draft National Data Governance Framework Policy, 2022 can achieve these objectives?

“A whole-of-the-government approach to data governance needs to go beyond mere techno-policy interventions “. Argue.

THE INDIAN POLITY AND GOVERNANCE

MINORITY STATUS IN INDIA IS STATE-DEPENDENT, SAYS SC

THE CONTEXT: Recently, the apex court said , every person in India can be a minority in one State or the other. Minority status of religious and linguistic communities is “State-dependent”.

THE EXPLANATION:

• The court was hearing a petition filed by a Mathura resident, complaining that followers of Judaism, Bahaism and Hinduism, who are the real minorities in Ladakh, Mizoram, Lakshadweep, Kashmir, Nagaland, Meghalaya, Arunachal Pradesh, Punjab and Manipur, cannot establish and administer educational institutions of their choice because of non-identification of ‘minority’ at the State level.
• But the court indicated that a religious or linguistic community which is a minority in a particular State can inherently claim protection and the right to administer and run its own educational institutions under Articles 29 and 30 of the Constitution. The court asked whether a specific notification was required.
• This question from the Bench came in response to submissions made by a senior advocates that Hindus residing in certain States were unable to exercise their rights under Articles 29 and 30 in the absence of a specific notification declaring them a minority.
• The petition has argued that the recognition of Muslims, Christians, Sikhs, Buddhists and Parsis nationally by the Centre as ‘minorities’ ignored the fact that religious communities such as Hindus were “socially, economically, politically non-dominant and numerically inferior” in several States.

VALUE ADDITION:

Minorities in India

• They are not explicitly mentioned anywhere in the Constitution.
• Muslims, Sikhs, Christians, Buddhists, Jain and Zoroastrians (Parsis) have been notified as minority communities under Section 2 (c) of the National Commission for Minorities Act, 1992.
  • Jains were added to the list in 2014.
• As per the Census 2011, the percentage of minorities in the country is about 3% of the total population of the country.
• The population of Muslims are 14.2%; Christians 2.3%; Sikhs 1.7%, Buddhists 0.7%, Jain 0.4% and Parsis 0.006%.

Constitutional provisions:

• Article 29 deals with the “protection of interest of minorities”, and says that “any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same”.
• Article 30, which deals with the “right of minorities to establish and administer educational institutions”, says that all minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice.
  • Minority for the purpose of Article 30 cannot have a different meaning depending upon who is legislating. Language being the basis for the establishment of different states for the purposes of Article 30, linguistic Minority will have to be determined in relation to the state in which the educational institution is sought to be established.
  • The position with regard to the religious minorities is similar since both religious and linguistic minorities have been put in power in article 30.
• Article 350 A says there shall be a Special Officer for linguistic minorities to be appointed by the President. “It shall be the duty of the Special Officer to investigate all matters relating to the safeguards provided for linguistic minorities under this constitution and report to the President upon those matters.”

Who are the minorities who have been notified by the Indian government?

• Currently, only communities notified by the central government under section 2(c) of the NCM Act, 1992, are recognized as minority communities.
• With the enactment of the NCM Act, 1992, the MC was given the status of a statutory body and renamed the NCM.
• The first Statutory National Commission was established in 1993, and five religious communities, namely Muslims, Christians, Sikhs, Buddhists, and Zoroastrians (Parsis), were notified as minority communities.
• Jains were also notified as a minority community in 2014.

EXPLAINED: HOW CHIEF MINISTERS’ FOREIGN TRIPS ARE CLEARED, AND BY WHOM

THE CONTEXT: Delhi Chief Minister has questioned why the Centre has delayed the clearance of his trip to Singapore, where he has been invited to attend a World Cities Summit scheduled from July 31- August 3.

THE EXPLANATION:

In October 2019, the Centre had not given him the approval to attend another conference abroad, which he eventually addressed through videoconferencing.

What clearance do Chief Ministers require to travel abroad?

They have to inform the Cabinet Secretariat, which stated in a circular on May 6, 2015: “The Cabinet Secretariat and the Ministry of External Affairs should be kept informed of the proposed foreign visit, either official or private, of Chief Ministers and Ministers of State Governments/Union Territories. However, prior political clearance and FCRA (Foreign Contribution Regulation Act) clearance are mandatory.” In case of Chief Ministers and Ministers of state governments, a copy of the application must also be sent to the Secretary, Department of Economic Affairs (DEA).

What is political clearance?

This comes from the Ministry of External Affairs (MEA). This is required not only for public servants but any government servant for a foreign trip. The MEA gets hundreds of requests for political clearance every month from ministries, secretaries, bureaucrats and other officials.

THE HEALTH ISSUES

WHAT IS THE MARBURG VIRUS, THE EBOLA-LIKE OUTBREAK NOW CONFIRMED IN GHANA?

THE CONTEXT: The first two cases of the Marburg virus, a highly infectious Ebola-like disease, have been confirmed officially by Ghana after test results were verified by a Senegal laboratory.

THE EXPLANATION:

• According to the World Health Organisation, the first case was a 26-year-old male who checked into a hospital on June 26 and died a day later. The second case was a 51-year-old male who went to the hospital on June 28 and died the same day.
• This outbreak is only the second time that the disease has been detected in West Africa.

 What is the Marburg virus disease?

• Marburg virus disease (MVD), earlier known as Marburg haemorrhagic fever, is a severe, often fatal hemorrhagic fever, according to the WHO.
• Marburg, like Ebola, is a filovirus; and both diseases are clinically similar.
• Rousettus fruit bats are considered the natural hosts for the Marburg virus. However, African green monkeys imported from Uganda were the source of the first human infection, the WHO points out.
• It was first detected in 1967 after simultaneous outbreaks in Marburg and Frankfurt in Germany; and in Belgrade, Serbia.
• The disease has an average fatality rate of around 50%. However, it can be as low as 24% or as high as 88% depending on virus strain and case management, says the WHO.

What are the symptoms of Marburg virus disease?

• After the onset of symptoms, which can begin anytime between 2 to 21 days, MVD can manifest itself in the form of high fever, muscle aches and severe headache. Around the third day, patients report abdominal pain, vomiting, severe watery diarrhoea and cramping.
• In this phase, the WHO says, the appearance of patients has been often described as “ghost-like” with deep-set eyes, expressionless faces, and extreme lethargy.
• Between days 5 and 7, patients report bleeding from the nose, gums and blood appearing in vomits and faeces. Severe blood loss leads to death, often between 8 to 9 days after symptoms begin.

How can Marburg virus disease be diagnosed and treated?

It is difficult to clinically distinguish MVD from diseases such as malaria, typhoid fever and other viral haemorrhagic fevers. However, it is confirmed by lab testing of samples, which like Coronavirus and Ebola are extreme biohazard risks.

THE INTERNATIONAL RELATIONS

THE SHANGHAI COOPERATION ORGANISATION AND ITS STATURE IN THE MODERN WORLD

THE CONTEXT: Iran and Belarus could soon become the newest members of the China and Russia-backed Shanghai Cooperation Organisation (SCO). “In the Samarkand summit [in September], we expect the leadership to adopt a document on the obligations Iran must fulfil to gain membership.

THE EXPLANATION:

• The legal procedures of Belarus’s accession are about to start. We need to build consensus on the acceptance of Belarus,” Chinese diplomat and incumbent Secretary-General of SCO, Zhang Ming, stated last week. According to him, the suggested expansion would exhibit the collective’s rising international influence and its principles being widely accepted.

What is the SCO?

• Founded in June 2001, it was built on the ‘Shanghai Five’, the grouping which consisted of Russia, China, Kazakhstan, Kyrgyzstan and Tajikistan. They came together in the post-Soviet era in 1996, in order to work on regional security, reduction of border troops and terrorism. They endowed particular focus on ‘conflict resolution, given its early success between China and Russia, and then within the Central Asian Republics.
• In 2001, the ‘Shanghai Five’ inducted Uzbekistan into its fold and named it the SCO, outlining its principles in a charter that promoted what was called the “Shanghai spirit” of cooperation. The charter, adopted in St. Petersburg in 2002, enlists its main goals as strengthening mutual trust and neighbourliness among the member states; promoting their effective cooperation in politics, trade, economy, research and technology, and culture. Its focus areas include education, energy, transport, tourism and environmental protection.
• It also calls for joint efforts to maintain and ensure peace, security and stability in the region; and the establishment of a democratic, fair and rational new international political and economic order. The precise assertion, combined with some of the member states’ profiles, of building a “new international political and economic order” has often led to it being placed as a counter to treaties and groupings of the West, particularly the North Atlantic Treaty Organisation (NATO).
• The grouping comprises eight member states — India, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan. The SCO also has four observer states — Afghanistan, Iran, Belarus and Mongolia — of which Iran and Belarus are now moving towards full membership.

How is this relevant to India?

• India acquired the observer status in the grouping in 2005 and was admitted as a full member in 2017. Through the years, the SCO hosts have encouraged members to use the platform to discuss differences with other members on the sidelines. It was on such an occasion that Prime Minister held a bilateral meeting with former Pakistani Prime Minister Nawaz Sharif in 2015 in Ufa, and Foreign Minister S. Jaishankar negotiated a five-point agreement with his Chinese counterpart Wang Yi on the sidelines of the Moscow conference in 2020.
• India is also a part of the ‘Quadrilateral’ grouping with the U.S., Japan and Australia. Its association with the grouping of a rather different nature is part of its foreign policy that emphasises on principles of “strategic autonomy and multi-alignment”.

What is the organisational structure?

• The SCO Secretariat has two permanent bodies — the SCO Secretariat based in Beijing and the Executive Committee of the Regional Anti-Terrorist Structure (RATS) based in Tashkent. Other than this, the grouping consists of the Heads of State Council (HSC), the Heads of Government Council (HGC) and the Foreign Ministers Council.
• The HSC is the supreme decision-making body of the organisation. It meets annually to adopt decisions and guidelines on all important matters relevant to the organisation. The HGC (mainly including Prime Ministers) also meets annually to zero in on the organisation’s priority areas and multilateral cooperation strategy. It also endeavours to resolve present economic and cooperation issues alongside approving the organisation’s annual budget.
• The Foreign Ministers Council considers issues pertaining to the day-to-day activities of the organisation, charting HSC meetings and consultations on international problems within the organisation and if required, makes statements on behalf of the SCO.

Is it about countering the West?

• The Council on Foreign Relations (CFR) noted in 2015 that decades of rapid economic growth had propelled China onto the world’s stage, whereas Russia found itself beset with economic turmoil following the Crimean annexation in 2014 and ejection from the G8 grouping.
• Most recently, Russia’s action in Ukraine caused it to be subjected to sanctions on multiple fronts by the West. China, in what could be referred to as ‘distance diplomacy’, had held that security of one country should not be at the expense of another country — blaming the West (specifically referring to NATO) for the entire episode. Thus, the organisation spearheaded by both Russia and China does not find its supporters in the West.
• The Iranian leadership has often stressed that the country must “look to the East”. This is essential not only to resist its economic isolation (by addressing the banking and trade problems on account of U.S. sanctions) from the West, but also find strategic allies that would help it to reach a new agreement on the nuclear program. In other words, using its ties with China and Russia as a leverage against the West. Additionally, it would help it strengthen its involvement in Asia.

 THE PAKISTAN AND IMF TALKS: WHAT LIES AHEAD?

THE CONTEXT: Recently, the staff-level talks between Pakistan and the International Monetary Fund (IMF) concluded for the seventh and eighth review under Extended Fund Facility (EFF). The talks were originally aimed at releasing a tranche of $900 million.

THE EXPLANATION:

Finally, the IMF team reached an understanding with Pakistan to release $1.17 billion, subject to the board’s approval. This brings the total disbursement under the current EFF to $4.2 billion so far, to support policy actions under FY 2023 budget, power sector reforms, and monetary policy to restrain inflation. The latest IMF press release maintains it would consider an extension of the current EFF to end June 2023 and augment the fund amount to $7 billion.

What was the Extended Fund Facility (EFF), and why did the talks take longer to conclude?

• The 39-month EFF between the two was signed in July 2019 to provide funds amounting to Self-Drawing Rights (SDR) — $4,268 million. The EFF was signed by Pakistan to address the medium-term balance of payment problem, work on structural impediments and increase per capita income.
• The IMF placed demands including fiscal consolidation to reduce debt and build resilience, the market-determined exchange rate to restore competitiveness, eliminate ‘quasi-fiscal’ losses in the energy sector and strengthened institutions with transparency.

How important is the IMF support to Pakistan?

• Pakistan’s economic situation is dire. According to the Economic Survey of Pakistan 2022, the fiscal deficit in FY 22 was $18.6 billion, and the net public debt at $252 billion, which is 66.3% of the GDP. The power sector’s circular debt is $14 billion.
• According to the State Bank of Pakistan’s latest report, the current account deficit has peaked to $48.3 billion. The budgeted expenditure outlay for FY 23 states that 41% ($19 billion) of total expenditure will be used in debt servicing.
• The IMF’s support in addressing the above numbers is crucial. According to the latest quarterly report of the Economic Affairs Division, during the financial year 2021-22, the IMF’s contribution to the total external debt (of $9.4 billion), is only $834 million. However, the IMF’s support is not limited to fixing the balance sheet but validates and provides economic confidence to other multilateral institutions.

Why have the Pakistan-IMF relations remained complicated? Will the new government be able to improve the trust deficit?

• Structural reforms require long-term commitment, which has been sacrificed due to Pakistan’s short-sighted political goals; hence the urge to go to the IMF for financial stability has been repeated over time.
• Pakistan has signed various lending instruments with the IMF and sought support from IMF around 22 times. However, only once has a programme been completed. Since the 1990s, the IMF has placed specific demands but were addressed by Pakistan in bits and pieces.
• For example, during the Pakistan People’s Party (PPP) rule in 2008, Pakistan was to implement economic reforms, including improvements in tax administration, removal of tax exemptions as well structural reforms. However, successive governments kept domestic political calculations a priority, then economic reforms.
• The latest EFF was on the verge of collapse, but the ruling coalition government continued its efforts to revive the discussions. To address the structural benchmarks of the IMF, the authorities have worked on specific legislation, for example, the State Bank of Pakistan (SBP) amendment act, and the Finance Bill 2022.

What lies ahead for Pakistan and the IMF?

• Despite the latest agreement, the road ahead for the IMF and Pakistan is not an easy one. Political calculations and the elections ahead will play a role in Pakistan’s economic decision-making.
• In 2019, the Director-General Debt Office of the Ministry of Finance revealed that Pakistan has to pay $31 billion by 2026. Total public debt as a percentage of gross domestic product is expected to increase further.
• There is also a narrative that Pakistan has the fifth largest population with nuclear weapons that cannot be allowed to fail. A section within Pakistan also places the geo-strategic location of the country would provide an edge for cooperation, rather than coercion. Hence, this section believes, the IMF would continue to support.
• Given the IMF’s increased assertion, Pakistan’s political calculations and the elections ahead, the relationship between the two is likely to remain complicated.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q. Consider the following statements in respect of Bharat Ratna and Padma Awards

1. Bharat Ratna and Padma Awards are titled under Article 18(1) of the Constitution of India.
2. Padma awards, which were instituted in the year 1954, were suspended only once.
3. The number of Bharat Ratna Awards is restricted to a maximum of five in a particular year.

Which of the above statements are not correct?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

ANSWER FOR 18^TH JULY 2022

ANSWER: B

EXPLANATION:

• All the elected members of the Upper and Lower Houses of Parliament participate in the election
• A vote cast by each MP or MLA is not calculated as one vote. There is a larger vote value attached to it.

1. Footprints on sand The Pandemic of Offence READ MORE
2. Unwritten norms of civil society READ MORE

1. A grim outlook for the rice crop READ MORE
2. India’s climate imperative: For public pressure to drive climate action, we need to consider climate catastrophes as largely man-made READ MORE

1. Population and prosperity: Govt must focus on women’s education and health to control population growth READ MORE
2. Robots need our guidance READ MORE
3. Why India needs a new law to combat the deaths of workers in sewers and septic tanks READ MORE

1. Pegasus Row: Why Initial Global Outrage Didn’t Translate into Appetite for Accountability READ MORE
2. Amit Shah’s new ministry is more of the same. Cooperatives must not depend on govt READ MORE
3. Growth and welfare: Populism might mean different thingsto different people at different times READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Panel set up to make MSP system more effective, transparent READ MORE
2. Minority status of religious, linguistic communities is State-dependent: SC READ MORE
3. Yield inversion, soft-landing and reverse currency wars: A glossary for the troubled global economy READ MORE
4. WHO Confirms First Two Cases of Deadly Marburg Virus in Ghana READ MORE
5. Heavy rain triggered 10,000 landslides in Maharashtra in July 2021: Study READ MORE
6. Gene transfer enhances insect survival, says study READ MORE
7. MHA gets first spot in national e-governance service delivery assessment READ MORE
8. Leaders vow for security, stability in Middle East at Jeddah summit READ MORE

Main Exam

GS Paper- 1

1. A grim outlook for the rice crop READ MORE
2. Population and prosperity: Govt must focus on women’s education and health to control population growth READ MORE
3. Robots need our guidance READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Pegasus Row: Why Initial Global Outrage Didn’t Translate into Appetite for Accountability READ MORE
2. Amit Shah’s new ministry is more of the same. Cooperatives must not depend on govt READ MORE
3. Growth and welfare: Populism might mean different thingsto different people at different times READ MORE

SOCIAL ISSUES

1. Why India needs a new law to combat the deaths of workers in sewers and septic tanks READ MORE

INTERNATIONAL ISSUES

1. Not on the same page READ MORE
2. Institutions hold key to better ties: Indo Australian ties have grown over time and are now poised to become even more stronger despite china READ MORE
3. Preparing for the presidency: India must not lose G20 opportunity READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Macroeconomic care a must to shore up rupee READ MORE
2. SDG push in extraordinary times READ MORE

ENVIRONMENT AND ECOLOGY

1. India’s climate imperative: For public pressure to drive climate action, we need to consider climate catastrophes as largely man-made READ MORE

SECURITY

1. Drug trafficking: Recent seizures reveal mounting challenges READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Footprints on sand The Pandemic of Offence READ MORE
2. Unwritten norms of civil society READ MORE

Questions for the MAIN exam

1. ‘The spirit of cooperation is more important than establishing a ministry to look after cooperatives’. In the light of the statement, discuss whether the ministry for cooperatives in executive overreach?
2. For a rising India, stability a in the Middle East is crucial, but this goal does not align with I2U2 members whose policies are based on checking Iran and China. Critically analyse the statement in the light of the recent I2U2 summit.

QUOTATIONS AND CAPTIONS

• A six-word formula for success is: Think things through, then follow through.
• The spirit of cooperation is more important than establishing a ministry to look after cooperatives.
• The prohibition in the 2013 legislation has been diluted while a confusing Supreme Court order makes workers in sewers and septic tanks difficult to get compensation.
• Even if the government cannot manage a complete prohibition on the manual cleaning of sewers and septic tanks, it can still deploy the law to deter deaths and guarantee justice for the families of workers who die during hazardous cleaning.
• The geological and hydrological factors and anthropogenic disturbances in the region complemented the biological factors to initiate a landslide.
• More than the law, the police must first put an end to the practice of reflexively arresting first and then fishing for a possible offence.
• Joe Biden’s recent trip to the Middle East highlights the emerging trends in the region’s diverse political and strategic orientations. Diplomatic realism in Delhi means India can realise its potential in the region.
• Government policies must direct robots and AI into areas that have the least long-term harm to society.
• In a democracy, there are bound to be differing perspectives on major transformative changes.

50 WORD TALK

• States can tap into the Union government’s resources, financial and technological, from early warning meteorological systems to centrally sponsored climate schemes. MGNREGA funds can be used for climate adaptation in agriculture, waste management and livelihoods. States could make compensatory payment to local self-government resources being used for climate adaptation.

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.