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Type: op-ed snap

  • Minimum Support Prices for Agricultural Produce

    What true MSP means

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Legal basis for MSP

    Context

    Amid the demand for a guarantee of MSP, many commentators fail to understand the true spirit of the demand for a legal MSP.

    How demand for legal backing for MSP is misinterpreted?

    • Mandatory enforcement of price above MSP: The demand has been interpreted as a mandatory enforcement of trade in agricultural produce, including private trade to be necessarily at or above the MSP for that crop.
    • Nationalisation of agricultural trade: Another interpretation is the nationalisation of agricultural trade whereby the government promises to buy all the crop produced at MSP.
    • Commentators have been using these two interpretations to project large estimates of government expenditure needed to implement.
    • They fail to understand the true spirit of the demand for a legal MSP.

    Current nature of MSP

    • It is not an income support program: By definition MSP is not an income support programme.
    • Intervention to stabilise prices: It is designed to be used as government intervention to stabilise prices, to provide remunerative prices to farmers.
    • Public procurement program to meet requirements of NFSA: Currently, it is no more than a public procurement programme to meet the requirements of the National Food Security Act (NFSA).
    • Only rice and wheat procured: As against the official announcement of MSP for 23 crops, only two, rice and wheat are procured as these are distributed in NFSA.

    Larger context of demand for legal backing to MSP

    • Droughts and declining commodity prices: In addition to the twin droughts of 2014 and 2015, farmers have also suffered from declining commodity prices since 2014.
    • Impact of demonetisation and GST: The twin shocks of demonetisation and hurried rollout of GST, crippled the rural economy, primarily the non-farm sector, but also agriculture.
    • Impact of pandemic: The slowdown in the economy after 2016-17 followed by the pandemic has ensured that the situation remains precarious for majority of the farmers.
    • Increased input prices: Higher input prices for diesel, electricity and fertilisers have only contributed to the misery.
    • In this context, the demand for ensuring remunerative prices is only a reiteration of the promise by successive governments to implement the Swaminathan Committee report.

    What should be the true nature of MSP?

    • Intervene to stabilise price: A true MSP requires the government to intervene whenever market prices fall below a pre-defined level, primarily in case of excess production and oversupply or a price collapse due to international factors.
    • It does not require the government to buy all the produce but only to the extent that creates upward price pressures in the market to stabilise prices at the MSP level.

    Way forward

    • Mechanism for market intervention: What is needed is a mechanism to monitor the prices.
    • While such a mechanism already exists, a policy for requisite market intervention is missing.
    • Use MSP as incentive to achieve nutritional security and reduce import dependence: MSP can also be an incentive price for many of the crops which are desirable for nutritional security such as coarse cereals, and also for pulses and edible oils for which we are dependent on imports. 
    • Include pulses, edible oil and millets in PDS: Despite repeated demands from food activists, there has not been any progress in including pulses, edible oils and millets in PDS.
    • A guaranteed MSP then is nothing more than restoring the true spirit and functions of MSP, applicable to a broad range of crops and all sections of farmers.

    Issues

    • The current MSP regime has no relation to prices in the domestic market.
    • Its sole raison d’être is to fulfil the requirements of NFSA making it effectively a procurement price rather than an MSP. 
    • It is basically a lack of understanding of what agriculture needs and above all a lack of political commitment to ensure remunerative prices to farmers.

    Conclusion

    An efficient and functional MSP is certainly the least that the government can do to protect a sector which remains the largest employer and a refuge for the poor and vulnerable as was seen during the pandemic.

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  • Goods and Services Tax (GST)

    Goods and Services Tax as an unfinished agenda

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Challenges to GST

    Context

    Seen purely from a revenue point of view and as a fiscal policy tool, India’s GST is still on a rocky road.

    Background

    • The GST was launched by India on the midnight of July 1, 2017.
    • Benefits of GST: Hailed as a landmark reform in India’s tax history, it was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices.
    • Fiscal federalism: It was also projected as a watershed in India’s fiscal federalism.
    • the States have forgone a substantial part of their own tax revenue.
    • States were in turn guaranteed a GST compensation assuring 14% growth in their GST revenue during the initial five years.
    • India’s GST architecture: India’s GST architecture is built on the firm foundations of a GST Council and the GST Network (GSTN).
    • GST Council as due federal process: The first is the key decision-making body, chaired by the Union Finance Minister with a Minister of State in charge of Finance and the Finance Ministers of States as members.
    • This is envisaged as a due federal process to protect the interests of the States.

    Unresolved issues

    [1] Revenue neutrality not achieved

    • India’s GST paradigm stands on two key pillars: revenue neutrality and GST compensation for the States.
    • The assured revenue neutrality remains a mirage and many States have experienced a declining tax-GDP ratio.
    • Decline in tax to GDP ratio of state: In the case of major 18 States, the ratio of own tax revenue to GDP has declined.
    • While the share of the Centre in total GST increased by 6%, that of States put together lagged behind with only a 4.5% increase.
    • Stark differences between the Revenue Neutral Rates (RNR) for the producing States and consumption State have been observed. States producing exempted food grains also lost out.
    • Since the rates were lower under GST vis-à-vis the VAT regime, revenue neutrality was not adhered ab initio.
    • The problems were compounded with massive evasion following the dismantling of check posts, and later on fake invoices, that grew by leaps and bounds.
    • Experience of other countries: The South African experience illustrates how zero-rating and large exemptions have defeated revenue goals.
    • Canadian experience shows that GST could be improved by limiting zero rating, tax-exemptions and harmonising tax rates.
    • The resilience of the economy at the time of rolling out of GST is critical for its wider reception as the Australian experience shows.

    [2] Not conducive to co-operative federalism

    • While the States collectively forewent 51.8% of their total tax revenue, the Centre surrendered only 28.8%.
    • Yet, GST is shared equally between the Centre and States despite two expert committees recommended for a higher share for the States.
    • Given the revenue neutrality failure and the host of other issues, many of the States are left with no option except to depend on GST compensation.
    • This is not conducive to sustainable co-operative federalism.

    [3] Need for revenue sharing formula for IGST

    • Although IGST is a key source of revenue for many of the States, the clearing house mechanism and the process therein remains unknown territory.
    •  It was pointed out that GST is discriminatory to manufacturing States, indicating the need for a revenue sharing formula that duly incentivises exporting States by sharing IGST revenue among three parties instead of two.

    [4] Other issues

    • Swift functioning of Input tax credit: The Malaysian experience demonstrates the need for swift and transparent functioning of the input tax credit system through a flawless IT infrastructure.
    • We operate in an almost information vacuum especially with respect to IGST along with several glitches in the digital architecture.
    • GSTN is now in the doldrums.
    • Data monopoly: It neither makes effective use of the massive and invaluable data being generated nor shares them to enable others to make use of them.
    • Such practice in “data monopoly” was a fact of history in India’s statistical system and has to go sooner rather than later.
    • Australia, having several similarities with India, in terms of Centre and the subnational units, and destination-based, multi-stage tax with input credit provisions, has not been revenue-buoyant.
    • It is a matter for consideration whether widening exemptions and the replacing of income-tax by GST in the case of small and medium enterprises are advisable measures in the Indian context.

    Consider the question “What are the challenges facing the GST in India? What India can learn from the experience of other countries’ experience.”

    Conclusion

    Despite many years of efforts in evolving an Indianised GST system and over 50 months of adjustments with over a thousand notifications, with accompanying uncertainties in the first year and the novel coronavirus pandemic and the lockdown still in the saddle, GST continues to be an unfinished agenda. But how far and how long?

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  • North-East India – Security and Developmental Issues

    AFSPA and the challenges ahead

    op-ed snap | Governance | Mains Paper 2: Federalism,Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Issues related to use of AFSPA

    Context

    The death of civilians in Nagaland in a security operation has revived the debate about AFSPA.

    Demand for repeal of AFSPA

    • Some years ago, all the northeastern states had come together to demand the annulment of this Act.
    • That remained in the realm of yet another “demand”.
    • In 1997, after Nagaland’s most enduring insurgent outfit, the National Socialist Council of Nagalim (NSCN), led by Isak Swu and T H Muivah, first decided to talk peace with the Indian government, the Naga Peoples’ Movement for Human Rights (NPMHR) had approached the Supreme Court for revocation of the Act.
    • Enabling legislation: The apex court had then upheld its constitutionality and said it was an enabling legislation that confers minimum powers on the army to operate in situations of widespread internal disorder.

    Way forward

    • Talk to the other groups: Many are wondering if the peace talks between the NSCN (IM) and the government of India now lie in tatters.
    • The media has focussed exclusively on the NSCN (IM) and ignored the other Naga National Political Groups (NNPGs), who have been brought on board because they are Nagaland-based and speak exclusively for Nagaland.
    • The NNPGs and the Gaon Bura Association of Nagaland doubt NSCN(IM)’s ability to bring lasting peace in Nagaland.
    • Since 2015, the Nagaland Gaon Bura Association, the apex body of Nagas which includes all the 16 recognised tribes and the NNPGs barring the NSCN (IM), have sent several memorandums to the government.
    • These representatives of the Naga people do not demand a separate flag or constitution because they understand these are tenuous demands.
    • These groups have also never raised the sovereignty issue.
    • The working committee of the seven NNPGs, roped in to join the peace talks, are also opposed to the idea of changing interlocutors as and when the NSCN (IM) decides.
    • Reconsider use of AFSPA: There is a need to reconsider the use of the army and AFSPA when killings have reduced considerably.
    • The apex body has specifically mentioned that they want to be delivered from the gun culture.
    • Check the misuse of FMR: Countering insurgency in the Northeast is fraught also because of the Free Movement Regime (FMR) between India and Myanmar.

    Conclusion

    The government need to reconsider the use of AFSPA and also focus on other measures to ensure peace and stability in these regions.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Suspension of MPs for entire Winter Session is worrying

    op-ed snap | Polity | Mains Paper 2: Parliament & State Legislatures

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Suspension of MPs

    Context

    Twelve members of the Rajya Sabha were suspended for their alleged involvement in the grave disorder in the House on the last day of the previous session.

    What do Rajya Sabha’s rules of procedure say about the suspension of a member?

    • Rule 256 of Rajya Sabha’s rules of procedure provides for the suspension of a member who disregards the authority of the chair or abuses the rules of the council by persistently and willfully obstructing the business of the House.
    • Persistent and willful obstruction of the business of the House is the crux of the offence.
    • What is the maximum period of suspension? Suspension can be for a period not exceeding the remainder of the session.
    • This would mean that if the member is suspended on the last day of the session, the period of suspension will be only a day.
    • So, even if a government would like to suspend such a member for a longer period. it would not be possible under the present rule.
    • Unless the House itself revokes the suspension nothing can be done about it.
    • The decision of the House is final.
    • Every legislature has the power to suspend its members if they cause disorder and obstruct the business of the House.
    • But the rule of suspension is rarely invoked in parliaments in mature democracies.

    Whether the existing rules permit such a course of action?

    • Rule 256 says that the chairman may, if he deems it necessary, name a member who either disregards the authority of the chair or abuses the rules of the House by persistently and willfully obstructing the business of the House.
    • Sub Rule 2 of this rule is of very great importance in the context of the main question, namely, whether a member can be suspended in the next session for creating disorder in the previous session.
    • No adjournment is allowed: It clearly says no adjournment is allowed, which means the matter of suspension cannot be adjourned to a later period.
    • It needs to be decided then and there.
    • A member who abuses the rules of the House by persistently and willfully obstructing its business needs to be punished swiftly.
    • No adjournment is allowed at all.

    The powers of the House to regulate its internal matters

    • It can be said that the rule under which the members were suspended does not actually permit it.
    • Absolute power to interpret rule: The House is supreme in these matters and the chair has absolute powers to interpret the rules.
    • The judiciary has time and again clarified that the House has absolute powers to regulate its internal matters.
    • Suspension of a member is such a matter.
    • The judiciary will intervene only when a patently unconstitutional act is done by the House.

    Conclusion

    The solution to disruptions does not lie in suspension. That is the lesson we should learn from past experience.

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  • Monetary Policy Committee Notifications

    RBI must tackle surplus liquidity on way to policy normalisation

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Monetary policy corridor

    Mains level: Paper 3- Monetary policy normalisation and challenges involved in it

    Context

    Monetary Policy Committee (MPC) voted to maintain status quo on policy rates, with one member continuing to dissent on the “accommodative” stance of policy.

    What is accommodative stance of policy?

    Accommodative monetary policy is when central banks expand the money supply to boost the economy. Monetary policies that are considered accommodative include lowering the Federal funds rate. These measures are meant to make money less expensive to borrow and encourage more spending.

    Overview of RBI policy measures during Covid-related lockdown

    • Cut in policy rates and injection of liquidity: The RBI had moved proactively to cut the repo and reverse repo rate and inject unprecedented amounts of funds into banks and other intermediaries.
    • The short-term interest rate at reverse repo level: a combination of the lower reverse repo rate and the large liquidity injection had resulted in a drop in various short-term rates down to (and occasionally below) the reverse repo rate, making it the effective operating rate of monetary policy.
    • Gap between repo and reverse repo increased to 65 bps: In addition, both the repo and reverse repo rates had been cut to 4.0 and 3.35 per cent, respectively, with the gap – the “corridor” – between the rates widening from the usual 25 basis points to 65 bps.

    Central bank’s role in modern monetary policy

    • Determining basic overnight interest rate: A central bank’s main role in modern monetary policy operating procedures is to determine the basic overnight interest rate, deemed to be consistent with prevailing macroeconomic conditions and their economic policy objectives, in balancing the ecosystem for sustained growth together with moderate inflation.
    • This is achieved through buying and selling very short-term (predominantly overnight) funds (mainly) from banks to keep a specified operating rate (the weighted average call rate in our case) very close to the policy rate.

    Liquidity management: Key pillar of monetary policy normalisation

    • Liquidity management: Liquidity management in the extended banking and financial system (which includes non-banking intermediaries like NBFCs, mutual funds and others) will now be the key pillar of normalisation.
    • This process is the domain of RBI and not MPC.
    • These operations will be conducted within RBI’s liquidity management framework.
    •  There are two sources of liquidity additions:
    • (i) Exogenous: which are largely due to inflows of foreign currency funds and outflows of currency in circulation (cash) from the banking sector.
    • (ii) Voluntary or endogenous: which is the result of the creation of base money by RBI through buying and selling of bonds, thereby injecting or extracting rupee funds.

    How RBI is managing liquidity surplus?

    • Stopped GSAP and OMOs: Post the October review, RBI had stopped buying bonds under the Govt Securities Asset Purchase (GSAP) and done negligible Open Market Operations (OMOs), thereby stopping addition of voluntary liquidity injection into the system, our own version of “tapering”.
    • Union government balances with RBI, arising from cash flow mismatches between receipts and expenditures, has hybrid characteristics and also impacts liquidity.
    • Use of reverse repo window: RBI has used the reverse repo window to absorb almost all this liquidity surplus from banks.
    • Allowed repaying TLRTOs: It has again allowed banks the option to prepay the outstanding borrowings from the Targeted Long Term Repo Operations (TLTROs), thereby potentially extracting another Rs 70,000 crores.

    How RBI is managing interest rate in the policy normalisation process

    • Increased rates and closed the gap between repo and reverse repo: RBI – post the October review – has gradually guided short-term rates up with a sure hand from near the reverse repo rate to close to the repo rate.
    • It has shifted its liquidity absorption operations from the predominant use of fixed rate reverse repos (FRRR) into (largely) 14-day variable rate reverse repo (VRRR) auctions to guide a rise in interest rates.
    • Since early October, these rates had steadily moved up in a smooth and orderly fashion up to 3.75-3.9 per cent.
    • The VRRR rates moving up have also resulted in various short-term funding interest rates like 90-day Treasury Bills, Commercial Papers (CP) and banks’ Certificates of Deposits (CD) moving up from the reverse repo rate or below in September to 3.5 per cent and higher since December.
    • The OMO and GSAP operations have also helped in managing medium- and longer-term interest rates in the yield curve.

    Way forward

    • There is a likelihood of further additions to exogenous system liquidity.
    • Other instruments to absorb surpluses: There might consequently be a need for other instruments to absorb these surpluses apart from VRRR auctions.
    • Liquidity surplus of non-banking intermediaries: Managing liquidity surpluses of the non-banking intermediaries, especially mutual funds, will be another challenge since they do not have direct access to VRRR operations.

    Consider the question “Since the onset of the Covid-related lockdowns, RBI had moved proactively to cut the repo and reverse repo rate and inject unprecedented amounts of funds into banks and other intermediaries. In this context, what are the challenges in monetary policy normalisation as RBI plans to absorb the excess liquidity and increase the interest rates ?”

    Conclusion

    The shift to the tightening phase, with hikes in the repo rate, is likely towards the late months of FY23, with shifts “if warranted by changes in the economic outlook”.

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    Back2Basics: Monetary Policy Corridor

    • The Corridor in monetary policy of the RBI refers to the area between the reverse repo rate and the MSF rate.
    • Reverse repo rate will be the lowest of the policy rates whereas Marginal Standing Facility is something like an upper ceiling with a higher rate than the repo rate.
    • The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.

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

    Need for closer scrutiny of reduced out-of-pocket expenditure on health

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Scrutinising reduced out-of-pocket expenditure on health

    Context

    The National Health Accounts (NHA) report for 2017-18 is being celebrated widely as it shows that total public spending on health as a percentage of GDP has increased to a historic high of 1.35% of GDP.

    India’s total public spending on health

    • One of the lowest in the world: India’s total public spending on health as a percentage of GDP or in per capita terms has been one of the lowest in the world.
    • Majority spent by the States: The Union government traditionally spends around a third of the total government spending whereas the majority is borne by the States.
    • There has been a policy consensus for more than a decade now that public spending has to increase to at least 2.5% of GDP.
    • However, there has not been any significant increase so far.
    • Despite several pronouncements, it has continued to hover around 1%-1.2% of GDP.

    Why NHA report is being celebrated?

    • The National Health Accounts (NHA) report capture spending on health by various sources, and track the schemes through which these funds are channelised to various providers in a given time period for a given geography.
    • The National Health Accounts (NHA) report for 2017-18 is being celebrated widely as it shows that total public spending on health as a percentage of GDP has increased to a historic high of 1.35% of GDP.
    • The increase shown in NHA 2017-18 is largely due to increase in Union government expenditure.
    • Increase in Centre’s share: For 2017-18, the Centre’s share in total public spending on health has jumped to 40.8%.
    • However, if we study the spending pattern of the Ministry of Health and Family Welfare and the Ministry of AYUSH, we see that expenditure increased to 0.32% of GDP from 0.27% in 2016-17 — insufficient to explain the overall jump.

    Issues with NHA report

    • Expenditure of DMS included: Much of this increase has actually happened on account of a tripling of expenditure of the Defence Medical Services (DMS).
    • Compared to an expenditure of ₹10,485 in 2016-17, it increased to ₹32,118 crore.
    • Though the increasing spending for the health of defence personnel is a good thing, such spending does not benefit the general population. 
    •  Within government expenditure, the share of current health expenditure has come down to 71.9% compared to 77.9% a year ago.
    • Capital expenditure included: This essentially means, capital expenditure has increased, and specifically in defence.
    • There is a problem in accounting capital expenditure within the NHA framework.
    • Why capital expenditure needs to be left out: Equipment brought or a hospital that is built serves people for many years, so the expenditure incurred is used for the lifetime of the capital created and use does not get limited to that particular year in which expenditure is incurred.
    • The World Health Organization proposes to leave out capital expenditure from health accounts estimates, instead focus on current health expenditure.
    • Incomparable to other countries: In NHA estimates in India, in order to show higher public investment, capital expenditure is included; thus, Indian estimates become incomparable to other countries.
    • The NHA estimate also shows that out-of-pocket expenditure as a share of GDP has reduced to less than half of the total health expenditure.
    • NSSO 2017-18 data suggest that during this time period, utilisation of hospitalisation care has declined compared to 2014 NSSO estimates for almost all States and for various sections of society.
    • Sign of distress: The decline in out-of-pocket expenditure is essentially due to a decline in utilisation of care rather than greater financial protection.
    • Actually, the NSSO survey happened just after six months of demonetisation and almost at the same time when the Goods and Services Tax was introduced.
    • The disastrous consequences of the dual blow of demonetisation and GST on the purchasing power of people are quite well documented.
    • Another plausible explanation is linked to limitations in NSSO estimates. The NSSO fails to capture the spending pattern of the richest 5% of the population (who incur a large part of the health expenditure).
    • Thus, out-of-pocket expenditure measured from the NSSO could be an under-estimate as it fails to take into account the expenditure of the richest sections.

    Conclusion

    The reduction of out-of-pocket expenditure is a sign of distress and a result of methodological limitations of the NSSO, rather than a sign of increased financial protection.

     

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  • Air Pollution

    To check stubble burning, monitor policy implementation

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Agriculture and related issues,Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Impact of stubble burning

    Mains level: Paper 3- Measures to stop stubble burning

    Context

    Every October and November, parts of north India are engulfed by a dense fog. Farmers resort to the practice due to the limited time they have between the harvesting of kharif paddy and sowing of the rabi wheat.

    Government initiatives to stop the stubble burning

    • Policy measures: In 2014, the Ministry of Agriculture and Farmers Welfare developed a National Policy for the Management of Crop Residue.
    • Ban by NGT: In 2015, the National Green Tribunal banned stubble burning in Rajasthan, Uttar Pradesh, Delhi, Haryana and Punjab.
    • Weak enforcement: The enforcement of the ban has, however, been weak, largely due to inadequate political will.
    • Legal measures: Stubble burning was considered an offence under Section 188 of the Indian Penal Code and in the Air and Pollution Control Act, 1981.
    • However, it has now been decriminalised as per a recent government announcement.
    • The Central Scheme on Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue was introduced in 2018-19.
    • Over 1.5 lakh crop residue management machineries have been supplied to farmers and custom hiring centres between 2018-19 to 2020-21.

    How successful were the measures?

    • As a result of these efforts, the number of crop residue burning events declined from 2016 to 2019.
    • This year satellite data did show an almost 50 per cent decline in the number of stubble burning events in Punjab, Haryana and UP in October.
    • However, after including burning events till November 21, the decline reduced to about 8 per cent.
    • Experts suggest that the respite in October was temporary as the initial decline can be attributed to the delayed withdrawal of monsoon.
    • It is thus evident that despite various government initiatives, substantial stubble burning continues in several states.

    Suggestions

    • Subsidise operational cost for crop residue management: To ease farmers’ financial burden, the government could consider subsidising operational costs along with providing farmers capital subsidy on crop residue management equipment.
    • Ex-situ management of crop residue: Ex-situ management of crop residue can also be explored under the schemes covering products such as bales and pellets for biomass power generation and supplementary feedstock in coal-fired power plants.
    • Awareness generation: Awareness generation and trust building exercises should be undertaken with the support of local civil society organisations.
    • Adopt targeted and cluster-based approach: Stubble burning is fairly concentrated in regions within states.
    • A targeted and cluster-based approach can be undertaken by identifying districts with a higher number of stubble burning incidents.
    • Central and state government interventions can then be concentrated in these districts.
    • Monitoring system at local level: To make these interventions effective, there is a requirement for formulating a robust monitoring system at the local level to track the progress of different activities.

    Consider the question “Stubble burning by farmers of the adjacent states contributes significantly to the air pollution in Delhi. In this context, examine the initiatives taken by the government to deal with the problem and suggest the way forward.”

    Conclusion

    Dealing with the practice of stubble burning requires efforts on multiple levels. A combination of these measures can complement the existing initiatives to encourage farmers to adopt zero stubble burning practices.

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  • Human Rights Issues

    Why India will be scrutinised at Summit for Democracy

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- India's participation in summit for democracy

    Context

    On December 9 and 10, US President Joe Biden will host a virtual “summit for democracy”, which will bring together leaders of 100 countries, civil society and private sector representatives.

    Challenges to India’s democratic image

    • India categorised as partly free: The US-based Freedom House’s “Freedoms of the World” index categorises India as only “partly free”; the Swedish V-Dem calls India an “electoral autocracy”.
    • Others lump India with Hungary, Turkey and the Philippines, where authoritarian leaders rule the roost.
    • Factors affecting India’s image: Rights violations in Kashmir, suspension of internet services in Kashmir, the conflation of political dissent with the colonial-era crime of sedition, the use of anti-terrorism laws to silence critics, the failure of the state to ensure freedoms guaranteed by the Constitution, the anti-Muslim amendments to citizenship laws have all but shredded India’s democratic image.

    Agenda of the summit

    • The agenda of the summit holds contemporary resonance in India.
    • Three broad themes: According to the State Department, the summit will convene around three broad themes — defending democracy against authoritarianism, addressing and fighting corruption, and promoting respect for human rights.
    • Leaders will be “encouraged” to announce “specific actions and commitments” to meaningful domestic reforms and international initiatives that advance the summit’s goals.

    Why India’s contribution to the agenda will be scrutinized closely

    • Cultural relativisms: One theme that emerges from these observations is that of cultural relativism — the “Indianness of India’s democracy”— “as India becomes ever more democratic, democracy will become ever more Indian in its sensibilities and texture”.
    • Role of civil society: A second theme is the role of civil society.
    • It has been accused of “defaming” or bringing harm to India, as espoused most recently in statements by the National Security Adviser, who also called them “the new frontier of a fourth-generation war”.
    • Ensuring democratic rights: Another noticeable theme is around the responsibility for ensuring democratic rights.

    Challenges for India

    • India has to reconcile the paradox inherent in submitting to international gaze at a global assembly where it is apparently required to make commitments adhering to “western” standards of democracy while claiming there is an Indian model.
    • In March this year, External Affairs Minister Jaishankar dismissed global standards and international metrics of democracy as rubbish.
    • For perspective, this is what China says too.
    • When President Biden brought up Beijing’s human rights record, President Xi Jinping told him there was no “uniform model” of democracy, and that dismissing other “forms of democracy different from one’s own is itself undemocratic.
    • The summit may intensify these differences, particularly because the host has no shining credentials either.
    •  If democracy-building was never the US goal in Afghanistan, as Biden declared, why make the unfreezing of Afghan assets overseas conditional to the Taliban turning democratic and inclusive overnight?

    Conclusion

    India’s expected participation in the summit will come against a rather bleak backdrop of relativism, misinformation, confusion, obfuscation and polarisation on issues of democracy, civil society and rights.

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  • RBI Notifications

    The brush with crypto offers some lessons for regulation

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Cryptocurrencies

    Mains level: Paper 3- Lessons for regulation

    Context

    The fact that crypto exchanges successfully managed to signal legitimacy for their services and offer these tokens to a mostly-uninformed public for over a year provides lessons on how the government and sectoral regulators may need to act before the game gets out of hand.

    Regulating the technology innovation

    • Technology innovation typically remains a step ahead of regulatory frameworks, which are designed with current practices in mind.
    • Problems occur when these innovations push the envelope beyond accepted codes of social and ethical behaviour.
    • Digital lending apps: The joint parliamentary committee (JPC) on a proposed data privacy law that recently released its controversial report has pointed to dubious “digital” lending apps proliferating on the Android platform.
    • Blockchain technology, of which cryptos are a part, is an innovation that can facilitate transactions across assorted functions.

    Issues with unregulated cryptocurrencies in India

    • Some estimates show that over 15 million Indians have invested in cryptos, many of whom live in Tier-II or Tier-III towns.
    • But crypto exchanges in India have pushed the boundaries of this invention.
    • Important disclaimer not communicated properly: They have been advertising aggressively across media platforms often announcing important disclaimers at warp speed.
    • These provisos were supposed to communicate that cryptos are neither currencies nor strictly “assets”, and that these trading platforms are not truly “exchanges”, that crypto values are not determined by the usual dynamics governing other income-yielding assets, and that investing in cryptos was an exceedingly risky proposition.
    •  In the meantime, with advertising overload stimulating viewer interest, many scam crypto issuers and exchanges have sprung up in attempts to separate the gullible from their savings.

    Regulation challenges and how government is tackling it

    • The government has now stepped in, seized with the political perils of speculative investments turning sour.
    •  Unfortunately, sectoral regulators, such as the Reserve Bank of India (RBI) and Securities Exchange Board of India (Sebi), were unable to step in and act earlier because they are governed by specific Acts which do not mention cryptos as a category that needs regulation.
    • Need for enabling clauses: This episode provides a valuable lesson on how these Acts should perhaps include some enabling clauses that allow financial sector regulators to intervene whenever any intermediary tries to sell a financial service or any new innovative financial service poses the risk of disrupting financial stability.
    • Two important documents have recently been released which discuss entry norms into formal banking, both further strengthening RBI’s hands.
    • Think-tank Niti Aayog’s paper on licensing digital banks recommends an evolutionary path for digital banks that’s RBI-regulated at all stages: first a restricted licence, then a regulatory sandbox offering some relaxations, and finally a “full-stack” digital banking licence.
    • Simultaneously, RBI has accepted some of the suggestions of its internal working group and modified a few to make entry norms stricter, but has maintained silence on the entry of private sector corporate houses into banking.
    • The JPC’s concerns over unregulated digital lending have also focused attention on an RBI-appointed committee’s report on digital lending, given that multiple fintech-based online lenders have mushroomed during the pandemic.

    Conclusion

    This highlights the need for principle-based regulations, rather than rule-based regulations, to allow for flexibility and adaptability in a fast-changing technology environment.

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  • Poverty Eradication – Definition, Debates, etc.

    What the NFHS data reveals about inequality in India

    op-ed snap | Governance | Mains Paper 2: Government Scheme/Policies,Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Gini

    Mains level: Paper 2- Analysing NHFS-5 data

    Context

    The release of the NFHS data (and the Niti Aayog’s study on developing a multi-dimensional index of poverty — MPI) has led to a considerable amount of discussion, and justifiably so.

    Understanding the progress and development: MPI

    • The MPI is an Oxford-based initiative that develops an exclusive broadly non-monetary living standard index of poverty.
    • MPI indices are the third in the series of global studies on poverty.
    • Global studies on poverty: Global studies started with the World Bank’s income/consumption-based measure of absolute poverty.
    • The UN expanded the monetary index adding health and education indicators via the Human Development Index (HDI).

    Evolution of poverty over time

    • Like with the other poverty indices (World Bank and HDI), most information and useful policy analysis comes via a study of the inter-temporal evolution of poverty. 
    • Regional inequality: Ajit Ranade acknowledges that regional inequality has existed for some time, but he argues that poverty incidence across Indian states even as per the MPI is astoundingly unequal.
    • T N Ninan talks about the simultaneous existence of Africa’s Sahel region and the Philippines in India.
    • He finds that the two Indias are not getting any closer.
    • Indeed, India’s development trajectory has not been uniform, but the regional imbalance of development cannot be viewed at a fixed point in time.

    Analysing the NHFS data

    • A detailed examination of the summary statistics reported in the NFHS data (large and small states of India for the two years 2015-16 and 2019-21), reveals the opposite result.
    • Convergence: The analysis reveals remarkable convergence in living standards, a convergence possibly unparalleled in Indian history and in the space of just five years.
    • NFHS reports the averages for all states, and for 131 variables, for two years 2015-16 and 2020-21.
    • Seventeen of these 131 welfare indicators are used to construct indices under four classifications.
    • Improvement in lives of girls/women: The first classification concerns itself with the improvement in the lives of girls/women (five indicators, for example, sex ratio, fertility, female education).
    • Housing conditions: The second bucket consists of housing conditions (three indicators, for example, improved sanitation, clean fuel).
    • Children’s welfare: The third list consists of children’s welfare (four indicators such as adequate diet, stunting)
    • Women’s welfare: The fourth classification includes women’s empowerment (five indicators, for example, owning a house, less spousal violence).
    • Given that Niti Aayog’s report primarily relies on the NFHS-4, these findings can be used as the baseline scenario to evaluate the delta — that is, the per cent change in indicators between NFHS-4 and NFHS-5.
    • The table reports the results for several states.

    • Seventeen indicators imply a maximum possible score of 1,700.
    • Kerala performs the best with an aggregate index of 1,300 in NFHS-5 — a very small 1.5 per cent increase from its 2015-16 value.
    • In contrast, Bihar increases its index by 56 per cent.
    • Punjab does better than Tamil Nadu and today has a higher index – 1,240 versus 1,178 in 2020-21.
    • UP (along with Rajasthan and MP) performs the best — a 60 plus per cent increase in the welfare index, more than five times the increase in the rich states.

    Major findings from the NHFS data

    • Convergence: Higher improvement by less developed states is evidence in support of catch-up, which suggests that regional imbalances are reducing, and in some indicators, rapidly so.
    • States such as UP, Bihar and Jharkhand are fast approaching similar standards for select indicators as some of the “developed” states.
    • Result of targeted intervention: This acceleration in catch up is no coincidence, but rather an outcome of an approach that involves targeted interventions to improve developmental outcomes.
    • The approach was not just limited to sanitation, proper fuel or electricity — interventions that are targeted to an individual household — but also to the holistic development of an entire region.

    Consider the question “What does NHFS-5 data reveal about the inequality in India?”

    Conclusion

    India has been, and was, not one but several Indias. What is remarkable about its recent history is the rapid process of uneven change — where progress is considerably higher for the poorer states — the convergent, and inclusive pattern of development. That is the real story behind the NFHS-4 and NFHS-5 numbers.

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  • Judicial Pendency

    Unresolved constitutional cases

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Unresolved constitutional cases and their implications

    Context

    As 2021 draws to a close, a look at the Supreme Court of India’s docket reveals a host of highly significant constitutional cases that were long-pending when the year began, and are now simply a year older without any sign of resolution around the corner.

    How delay in judicial process matters differently for the State and individual?

    • While the violation of rights — whether through executive or legislative action — is relatively costless for the state, it is the individual, or individuals, who pay the price.
    • Making the Constitution effective: Consequently, a Constitution is entirely ineffective if a rights-violating status quo is allowed to exist and perpetuate for months, or even years, before it is finally resolved.
    • This point, of course, is not limited to the violation of rights, but extends to all significant constitutional questions that arise in the course of controversial state action.
    • Missing the accountability: Issues around the federal structure, elections, and many others, all involve questions of power and accountability, and the longer that courts take to resolve such cases, the more we move from a realm of accountability to a realm of impunity.
    • The longer such cases are left hanging without a decision, the greater the damage that is inflicted upon our constitutional democracy’s commitment to the rule of law.

    Significant cases that are unresolved

    [a] Challenge to the dilution of Article 370

    • There is the constitutional challenge to the Presidential Orders of August 5, 2019, that effectively diluted Article 370 of the Indian Constitution, and bifurcated the State of Jammu and Kashmir into two Union Territories, controlled by the Centre.
    • It raises the question of whether the Centre can take advantage of an Article 356 situation in a State — a time when no elected government and Assembly is in existence — to make permanent and irreversible alterations in the very structure of the State itself.
    •  Implications for federal structure: The answer will have important ramifications not just for Jammu and Kashmir but for the entire federal structure:
    • India has a long history of the abuse of Article 356 to “get rid of” inconvenient State governments, and a further expansion of the power already enjoyed by the Centre will skew an already tilted federal scheme even further.
    • Power of the Parliament to alter convert State into UT: The case also raises the question of whether, under the Constitution, the Union Legislature has the authority not simply to alter State boundaries (a power granted to it by Article 3 of the Constitution), but degrade a State into a Union Territory.
    • If it turned out that the Union Legislature does have this power, it would essentially mean that India’s federal structure is entirely at the mercy of Parliament.

    [2] Constitutional challenge to the electoral bond scheme

    • Opaque and structurally biased: The electoral bonds scheme authorises limitless, anonymous corporate donations to political parties, making election funding both entirely opaque to the people, as well as being structurally biased towards the party that is in power at the Centre.
    • Impact on integrity and right of the citizens to informed vote: In numerous central and State election cycles in the last four years, thousands of crores of rupees have been spent in anonymous political donations, thus impacting not only the integrity of the election process but also the constitutional right of citizens to an informed vote.
    • However, other than two interim orders, the Supreme Court has refused to accord a full hearing to the constitutional challenge.

    [3] Other significant cases

    • Statutory basis of the CBI: As far back as 2013, the Gauhati High Court held that the Central Bureau of Investigation (CBI) was not established under any statutory authority.
    • This verdict was immediately stayed when it was appealed to the Supreme Court, but in the intervening years, it has never been heard.
    • Challenge to the CAA: More recently, constitutional challenges to the Citizenship (Amendment) Act (CAA), filed in the immediate aftermath of the legislation’s enactment, remain unheard.
    • Challenge to the UAPA: The challenges to the much-criticised Section 43(D)(5) of the Unlawful Activities (Prevention) Act, which makes the grant of bail effectively impossible, and is responsible for the years-long incarceration of several people.
    • The challenge to Section 43(D)(5) is perhaps the case that most directly affects civil rights, as the section continues to be applied on a regular basis.

    Implications of the delay

    • Favouring one party: The Supreme Court’s inaction is not neutral, but rather, favours the beneficiaries of the status quo.
    • In other words, by not deciding, the Court is in effect deciding — in favour of one party — but without a reasoned judgment that justifies its stance.
    • Impact on accountability: Judicial evasion of this kind is also damaging for the accountability of the judiciary itself.
    • The Court’s inaction plays as significant a role on the ground as does its action, there is no judgment — and no reasoning — that the public can engage with.
    • Impact on the rule of law: For obvious reasons, this too has a serious impact on the rule of law.

    Consider the question “What are the implications of the delay in deciding the constitutionally significant cases? Suggest the way forward.”

    Conclusion

    The current CJI has been on record stressing the importance of the rule of law and the independence of the judiciary. One way of demonstrating that in action might be to hear — and decide — the important constitutional cases pending before the Court.

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  • Air Pollution

    Centre and states must work together to tackle the pollution in the NCR

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Tackling air pollution through solar farming

    Context

    Supreme Court (SC) judges have pulled up the Delhi and central governments for not doing enough to correct the dire air quality situation. They also remarked on what message we are sending to the world.

    The pollution problem raises doubt about the quality of urbanisation in India

    •  If one looks at the capitals of G20 countries, Delhi’s air quality index (AQI) during November 1-15, is by far the worst at 312, as per World Air Quality Index Project.
    •  India’s distinction goes beyond Delhi.
    • As per the World Air Quality Report of 2020, prepared by IQAir (a Swiss organisation), of the 30 most polluted cities in the world, 22 are in India.
    • The problem is much deeper, raising doubts about the quality of our urbanisation.

    Contributing sources and their share

    • Contributing sources: As per the report of the Ministry of Environment, Forest, and Climate Change submitted to the UN Framework Convention on Climate Change following sources contribute in the given proportion:
    • Energy generation (largely coal-based thermal power) is the biggest culprit with a share of 44 per cent in greenhouse gas emissions,
    • Energy generation is followed by manufacturing and construction-18 per cent.
    • Agriculture-14 per cent.
    • Transport-13 per cent industrial processes and product use- 8 per cent and waste burning- 3 per cent.

    Suggestions to tackle Delhi’s pollution

    • As per the System of Air Quality Forecasting and Research (SAFAR), the reasons for poor AQI differ day to day.
    • On a particular day, say November 7, stubble burning contributed 48 per cent of Delhi’s air pollution, which fell to just 2 per cent on November 18.
    • Reduce rice cultivation: The Centre needs to sit down with neighbouring states and come up with a plan to reduce the rice area in this belt, which is already depleting the water table, creating methane and nitrous oxide, to incentivise farmers to switch to other crops through better returns than in rice cultivation.
    • Adopt EVs: To tackle vehicular pollution, we need a massive drive towards electric vehicles (EVs), and later towards green hydrogen when it becomes competitive with fossil fuels.
    • Charging stations: Scaling up EVs quickly demands creating charging stations on a war footing.
    • Develop carbon sink: Delhi also needs a good carbon sink.
    • Rejuvenating the Ridge area with dense forests and developing thick forests on both sides of the Yamuna may help.

    Enhancing farmers income through solar farming

    •  The Prime Minister has done a commendable job in Glasgow to commit that 50 per cent of India’s energy will be from renewable sources by 2030.
    • To replace coal in energy generation, solar and wind is the way to go at the all-India level.
    • The current model in solar energy is heavily tilted towards companies.
    • They are setting up large solar farms on degraded or less fertile lands.
    • We can supplement that model by developing solar farms on farmers’ fields.
    • This would require solar panels to be fixed at a 10 feet height with due spacing to let enough sunlight come to the plants for photosynthesis.
    • These “solar trees” can then become the “third crop” for the farmers, earning them regular income throughout the year, provided the law allows them to sell this power to the national grid.
    • The Delhi government’s pilot in Ujwa KVK land on these lines showed that farmers can earn up to Rs 1 lakh per acre per year from this “solar farming”.
    • This is on top of the two crops they can keep growing under those solar trees.
    • This will double farmers’ income within a year.

    Conclusion

    As deteriorating air quality grips the whole country, we need to work on multiple levels with coordination to tackle the problem.

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  • Foreign Policy Watch: India-Russia

    Realising the potential of India-Russia ties

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: S-400

    Mains level: Paper 2- India- Russia ties in the changed geopolitical context

    Context

    The Russian president is on visit to India. Visits by Russian presidents to India always invoke a sense of nostalgia. The Moscow-Delhi relationship dates back to the Cold War era and it has been strong ever since.

    Factors limiting the possibilities for bilateral partnership

    • The conflict between Russia and the West: One factor is the continuing conflict between the Kremlin and the West.
    • Absence of trade between India and Russia: The other is the absence of a thriving commercial relationship between India and Russia.
    • India-US relations: India’s relations with Washington has never been as intense as it is today.
    • Russia-China relations: Moscow’s embrace of Beijing is tighter than ever.
    • The US-China rivalry: That the US and China are now at each other’s throats makes the great power dynamic a lot more complicated for India and Russia.

    Importance of trade ties

    • Need for robust business ties: That Delhi and Moscow have problems with the best friend of the other would have been more manageable if business ties between India and Russia were solid.
    • Where India and Russia have greater freedom is in the economic domain, but their failure to boost the commercial relationship has been stark.
    • India-Russia annual trade in goods is stuck at about $10 billion.
    • Slow progress on enhancing trade and investment ties: During the last 20 summits with Putin, the two sides have repeatedly affirmed the importance of enhancing trade and investment ties; but progress has been hard to come by.
    • How to fix the problem? The problem clearly can’t be fixed at the level of governments.
    • The Russian business elites gravitate to Europe and China. The Indian corporations are focused on America and China.

    Russia-US ties and its implications for India

    • Implications for India? The structural constraints posed by the great power dynamic and vastly different appreciation of the regional security environment could be reduced if matters improve between Washington and Moscow.
    • In Washington, the Biden administration recognises the importance of ending this permanent crisis in US-Russian relations.
    • Winning a strategic competition with China: The Biden administration, which is focused on winning the intensifying strategic competition with China, values a stable relationship with Russia.
    •  Nothing pleases Moscow more than the image of being Washington’s equal on the global stage.
    • Relief for India: A less conflictual relationship between Washington and Moscow will be a huge relief for India; but Delhi can’t nudge them closer to each other.

    Why the partnership with India matters to Russia

    • Dangers of excessive reliance on China: Persistent conflict with the US, Europe, and Japan have moved Moscow ever closer to Beijing.
    • But Moscow knows the dangers of relying solely on a neighbour which has risen to greatness — the Chinese economy at nearly $15 trillion today is nearly 10 times larger than that of Russia.
    • Sustaining the traditional partnership with India: While resetting Russia’s relations with the West is hard, sustaining the traditional partnership with Delhi is of some political value to Moscow.
    • Longstanding defence ties: Russia is pleased that the S-400 missile sale has gone through despite strong US opposition.
    • For it signals Delhi’s commitment not to let Washington roll back India’s longstanding defence ties with Russia.
    • Russia knows India’s strategic cooperation with the US has acquired an unstoppable momentum; and Delhi knows it has no veto over the Sino-Russian strategic partnership.
    • Moscow and Delhi are learning to live with this uncomfortable unreality and stabilising their political ties within that context.

    Consider the question “While both India and Russia have drifted apart from the depth of past partnerships, there is a need for stabilising their political ties within the changed context.Comment.”

    Context

    Delhi and Moscow have no reason to be satisfied with the poor state of their commercial ties. The success of Monday’s summit lies not in squeezing more out of bilateral defence ties, but in laying a clear path for expansive economic cooperation, and generating a better understanding of each other’s imperatives on Afghanistan and the Indo-Pacific.

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

    The NIRF’s ranking of education institutions on a common scale is problematic

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NIRF

    Mains level: Paper 2- Issues in ranking HEI based on common framework

    Context

    The ranking of State-run higher education institutions (HEIs) together with centrally funded institutions using the National Institutional Ranking Framework, or the NIRF, is akin to comparing apples and oranges.

    Institute data

    • According to an All India Survey on Higher Education (AISHE) 2019-20 report, there are 1,043 HEIs.
    • Of these, 48 are central universities.
    • 135 are institutions of national importance,
    • 1 is a central open university,
    • 386 are State public universities,
    • 5 are institutions under the State legislature act,
    • 14 are State open universities,
    • 327 are State private universities,
    • 1 is a State private open university,
    • 36 are government deemed universities,
    • 10 are government aided deemed universities.
    • 80 are private deemed universities.

    Comparison of financial health of State HEI with Central HEIs

    • A close study of the above data shows that 184 are centrally funded institutions (out of 1,043 HEIs in the country) to which the Government of India generously allocates its financial resources in contrast to inadequate financial support provided by State governments to their respective State public universities and colleges.
    • The Central government earmarked the sums, ₹7,686 crore and ₹7,643.26 crore to the IITs and central universities, respectively, in the Union Budget 2021.
    • Ironically, out of the total student enrolment, the number of undergraduate students is the largest (13,97,527) in State public universities followed by State open universities (9,22,944).

    How NIRF ranks the education institutions?

    • Parameters set by the core committee of experts: The NIRF outlines a methodology to rank HEIs across the country, which is based on a set of metrics for the ranking of HEIs as agreed upon by a core committee of experts set up by the then Ministry of Human Resources Development (now the Ministry of Education), Government of India
    • The NIRF ranks HEIs on five parameters: teaching, learning and resources; research and professional practice; graduation outcome; outreach and inclusivity, and perception.

    Where do State HEIs lag on NIRF parameters?

    • Teaching, learning and resources include metrics viz. student strength including doctoral students, the faculty-student ratio with an emphasis on permanent faculty, a combined metric for faculty with the qualification of PhD (or equivalent) and experience, and financial resources and their utilisation.
    • Low faculty strength in State HEIs: In the absence of adequate faculty strength, most State HEIs lag behind in this crucial NIRF parameter for ranking.
    • The depleting strength of teachers has further weakened the faculty-student ratio with an emphasis on permanent faculty in HEIs.
    • Research and professional practise encompasses a combined metric for publications, a combined metric for quality of publications, intellectual property rights/patents and the footprint of projects, professional practice and executive development programmes.
    • Need for modernisation of laboratories: As most laboratories need drastic modernisation in keeping pace with today’s market demand, it is no wonder that State HEIs fare miserably in this parameter as well while pitted against central institutions.

    Issues with comparing State HEIs with Central HEIs

    • The difference in financial allocations diregarded: The financial health of State-sponsored HEIs is an open secret with salary and pension liabilities barely being managed.
    • Hence, rating such institutions vis-à-vis centrally funded institutions does not make any sense.
    • No cost-benefit analysis carried out: No agency carries out a cost-benefit analysis of State versus centrally funded HEIs on economic indicators such as return on investment the Government made into them vis-à-vis the contribution of their students in nation building parameters such as the number of students who passed out serving in rural areas, and bringing relief to common man.
    • While students who pass out of elite institutions generally prefer to move abroad in search of higher studies and better career prospects, a majority of State HEIs contribute immensely in building the local economy.
    • Issues in embracing technologies: State HEIs are struggling to embrace emerging technologies involving artificial intelligence, machine learning, block chains, smart boards, handheld computing devices, adaptive computer testing for student development.

    Consider the question “What are the challenges in the ranking of Higher Education Institutions in India? What are the issues faced by State HEI?”

    Conclusion

    Ranking HEIs on a common scale purely based on strengths without taking note of the challenges and the weaknesses they face is not justified. It is time the NIRF plans an appropriate mechanism to rate the output and the performance of institutes in light of their constraints and the resources available to them.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    A white touch to a refreshed green revolution

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues,Inclusive Growth & Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Contrast between white and green revolution

    Context

    November 26, 2021 was celebrated in Anand, Gujarat as the 100th birth anniversary of Verghese Kurien, the leader of India’s ‘white revolution’.

    Analysing the Green revolution

    • Purpose of green revolution: The purpose of the green revolution was to increase the output of agriculture to prevent shortages of food.
    • Technocratic enterprise: The green revolution was largely a technocratic enterprise driven by science and the principles of efficiency.
    • It required inputs, like chemical fertilizers, to be produced on scale and at low cost.
    • Therefore, large fertilizer factories were set up for the green revolution. And large dams and irrigation systems were also required to feed water on a large scale.
    • Monocropping on fields was necessary to apply all appropriate inputs — seeds, fertilizer, water, etc., on scale.
    •  Monocropping increased the efficiency in application of inputs.
    • Thus, farms became like large, dedicated engineering factories designed to produce large volumes efficiently.
    •  Diversity in the products and processes of large factories creates complexity.
    • Therefore, diversity is weeded out to keep the factories well-focused on the outputs they are designed for.

    The contrast between White and Green revolution

    • The contrast between the two revolutions provides valuable insights. Their purposes were different.
    • Purpose of white revolution: The purpose of the white revolution was to increase the incomes of small farmers in Gujarat, not the output of milk.
    • The white revolution was a socio-economic enterprise driven by political leaders and principles of equity.

    Understanding the success of Amul

    • Amul has become one of India’s most loved brands, and is respected internationally too for the quality of its products and the efficiency of its management.
    • The fledgling, farmer-owned, Indian enterprise had many technological problems to solve.
    • That is why they enrolled Kurien, who had studied engineering in the United States.
    • Indigenous solutions: Kurien and his engineering compatriots in the organisation were compelled to develop solutions indigenously when Indian policy makers, influenced by foreign experts, said Indians could not make it.
    • The enterprise achieved its outcome of empowering farmers because the governance of the enterprise to achieve equity was always kept in the foreground, with the efficiency of its production processes in the background as a means to the outcome.

    Increasing productivity and issues with it

    • ‘Productivity’, when defined as output per worker, can be increased by eliminating workers.
    • This may be an acceptable way to measure and increase productivity when the purpose of the enterprise is to increase profits of investors in the enterprise.
    • It is a wrong approach to productivity when the purpose of the enterprise is to enable more workers to increase their incomes, which must be the aim of any policy to increase small farmers’ incomes.
    • The need for new solutions to increase farmers’ incomes has become imperative.
    • Moreover, fundamental changes in economics and management sciences are necessary to reverse the degradation of the planet’s natural environment that has taken place with the application of modern technological solutions and management methods for the pursuit of economic growth.

    Suggestions to increase inclusion and improve environmental sustainability

    • Ensure inclusion and equity: Increase in the incomes and wealth of the workers and small asset owners in the enterprise must be the purpose of the enterprise, rather than production of better returns for investors.
    • Social side: The ‘social’ side of the enterprise is as important as its ‘business’ side.
    • Therefore, new metrics of performance must be used, and many ‘non-corporate’ methods of management learned and applied to strengthen its social fabric.
    • Local solution: Solutions must be ‘local systems’ solutions, rather than ‘global (or national) scale’ solutions.
    • The resources in the local environment (including local workers) must be the principal resources of the enterprise.
    • Practical use of science: Science must be practical and useable by the people on the ground rather than a science developed by experts to convince other experts.
    • Moreover, people on the ground are often better scientists from whom scientists in universities can learn useful science.
    • Sustainable solution through evolution: Sustainable transformations are brought about by a steady process of evolution, not by drastic revolution.
    • Large-scale transformations imposed from the top can have strong side-effects.

    Consider the question “Contrast the differences between the White Revolution and Green Revolution in India. What lessons can be applied to Indian agriculture from the success of the White Revolution in India?”

    Conclusion

    The essence of democratic economic governance is that an enterprise must be of the people, for the people, and governed by the people too.

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

    What the latest NFHS data says about the New Welfarism

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- What findings of NHFS-5 imply

    Context

    The second and final phase of NFHS-5 was released which covered 11 states (including Uttar Pradesh (UP), Tamil Nadu, Punjab, Rajasthan, Madhya Pradesh (MP), Jharkhand, Haryana, and Chhattisgarh) and about 49 per cent of the population.

    Major findings

    [1] Success of New Welfarism

    • Figure one plots household access to improved sanitation, cooking gas and bank accounts used by women.
    • The improvements are as striking as they were based on the performance of the phase 1 states.
    • In all cases, access has increased significantly, although claims of India being 100 per cent open defecation-free still remain excessive.

    [2] Child-related outcomes

    • India-wide, stunting has declined although the pace of improvement has slowed down post-2015 compared with the previous decade.
    • For example, stunting improved by 0.7 percentage points per year between 2005 and 2015 compared to 0.3 percentage points between 2015 and 2021.
    • On diarrhoea too, adding the new data reverses the earlier finding.
    • However, on anaemia and acute respiratory illness, there seems to have been deterioration.
    • The new child stunting results are significant but also surprising because of the sharply divergent outcomes between the phase 1 and phase 2 states.
    •  The interesting pattern is that nearly all the phase 2 states show large improvements, whereas most of the phase 1 states exhibited a deterioration in performance.

    [3] Catch up by the laggard states

    • If the new child stunting numbers are right, a different picture of India emerges.
    • Apparently, Madhya Pradesh now has fewer stunted children than Gujarat; Uttar Pradesh and Jharkhand are almost at par with Gujarat; Chhattisgarh fares better than Gujarat, Karnataka, and Maharashtra; and Rajasthan and Odisha fare better than Gujarat, Karnataka, Maharashtra, West Bengal, Telangana and Himachal Pradesh!
    • On child stunting, the old BIMARU states (excepting Bihar) are no longer the laggards; the laggards are Gujarat, Maharashtra, and Karnataka, and to a lesser extent, West Bengal, Andhra Pradesh and Telangana.
    • Indeed, the decline in stunting achieved by the poorer states such as UP, MP, Chhattisgarh and Rajasthan would be all the more remarkable given the overall weakness in the economy between 2015 and 2021.

    Conclusion

    When commentators speak of two Indias, it is now important to ask: Which ones and on what metrics.

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  • The politics-policy disconnect in India

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary,Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Disconnect between policy and politics in India

    Context

    Decision-making on virtually all governance issues is disconnected from politics and the mobilisation of public opinion.

    Disconnect between politics and policy

    • The repeal of the farm laws is thus a notable instance of politics and policy coming together, although in conflict.
    • The Opposition speaking in one voice in the Parliament helped, but the heavy lifting of organising in the villages and sustaining the protests was done by the farmers’ groups.
    • This disconnect between politics and policy is not a recent development, though it manifests differently across political divides.
    • Policy-first lens and its implications: The liberal side has a policy-first lens but is unable to articulate its ideas in a manner which makes for good politics, repeatedly couching its ideas in a bureaucratic framework disconnected from political organisation.
    • Bureaucracy is downstream from politics and this approach rather than curbing the state may have instead contributed to undermining the democratic process of political accountability since the political class is, by design, not central to the policy in the first place.
    • A politics-first approach: The right, on its side, has a politics-first lens but it derives its politics largely from its social agenda instead of issues of governance.
    • The policy imperatives, if any, are ad hoc and appear to be driven by the demands of running the political apparatus instead of a clear governance agenda.
    • Despite these differences, what is common across parties is the apolitical harnessing of the state as a disburser of different kinds of economic largesse, especially just before elections, as political parties cast about for simple ideas for easy mass communication.

    Reasons for the breakdown of the process

    • Weakly institutionalised nature of state and politics: Indian politics and the state are weakly institutionalised to begin with, which leads to an all-around fuzziness in the relationship between politics and policy.
    • However, this is as much an effect as it is cause, with the direction of change towards greater deinstitutionalisation instead of the opposite.
    • Lack of consensus-building: Another contributing factor is that traditional sites of consensus-building such as media, civil society, and political parties have developed pathologies which have rendered sustained consensus-building almost impossible. 
    • Centralisation of power: The excessive centralisation of power in party platforms and the head of the government (state and national).
    • This renders the individual elected representative extraneous to governance even in their own constituency, where their function is to provide representation and oversight.

    Way forward

    • There’s too much at stake to allow such a state of affairs to continue.
    •  It is important to rescue public interest from partisanship and cut through at least some of the bad-faith crosstalk across partisan divides.
    • Cross-cutting collaboration: There are many issues which lend themselves to cross-cutting collaboration outside of ideological affiliations.
    • Need for reforms: Institutional reforms are required to create such a space but public-spirited individuals across political divides can lay the foundation for such collaboration through issue-based discipline, moderation and intellectual independence.

    Consider the question “There has been a growing disconnect in India between policy and politics. Examine the factors responsible for this. Suggest the way forward.”

    Conclusion

    We need to address the disconnect between policy and politics to make the functioning of democracy more meaningful for us.

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  • Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

    India’s electric vehicle push will lead to brighter, greener future

    op-ed snap | Economics | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia,Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: FAME 2

    Mains level: Paper 3- Promoting EV ecosystem

    Context

    The transition to electric mobility is a promising global strategy for decarbonising the transport sector.

    Electricity mobility revolution

    • The global electric mobility revolution is today defined by the rapid growth in electric vehicle (EV) uptake.
    • This phenomenon is today defined by the rapid growth in EV uptake, with EV sales for the year 2020, reaching 2.1 million.
    • Falling battery costs and rising performance efficiencies are fueling the demand for EVs globally.

    Significance of India’s transition to electric mobility

    • India is the fifth largest car market in the world and has the potential to become one of the top three in the near future.
    • India is among a handful of countries that supports the global EV30@30 campaign, which aims for at least 30 per cent new vehicle sales to be electric by 2030.
    • Part of global climate agenda: The push for EVs is driven by the global climate agenda established under the Paris Agreement to reduce carbon emissions in order to limit global warming.
    • Ensuring energy security: It is also projected to contribute in improving the overall energy security situation as the country imports over 80 per cent of its overall crude oil requirements, amounting to approximately $100 billion.
    • Job creation: The push is also expected to play an important role in the local EV manufacturing industry for job creation.
    • Strengthen grid operation: Through several grid support services, EVs are expected to strengthen the grid and help accommodate higher renewable energy penetration while maintaining secure and stable grid operation.

    Battery storage: Opportunities and challenges

    • Promoting sustainable development: With recent technology disruptions, battery storage has great opportunity in promoting sustainable development in the country, considering government initiatives to promote e-mobility and renewable power (450 GW energy capacity target by 2030).
    • Economic opportunity: With rising levels of per capita income, there has been a tremendous demand for consumer electronics in the areas of mobile phones, UPS, laptops, power banks etc. that require advanced chemistry batteries.
    • This makes manufacturing of advanced batteries one of the largest economic opportunities of the 21st century.
    • Concern of absence of manufacturing base: It is estimated that by 2020-30 India’s cumulative demand for batteries would be approximately 900-1100 GWh, but there is concern over the absence of a manufacturing base for batteries in India, leading to sole reliance on imports to meet rising demand.

    Government schemes to promote EV ecosystem

    • To develop and promote the EV ecosystem in the country, government has remodeled Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme (Rs 10,000 crore) for the consumer side.
    • It has also launched production-linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) ( Rs 18,100 crore) for the supplier side.
    • Finally the recently launched PLI scheme for Auto and Automotive Components (Rs 25,938 crore) for manufacturers of electric vehicles was launched.
    • All these forward and backward integration mechanisms in the economy are expected to achieve robust growth in the coming years and will enable India to leapfrog to the environmentally cleaner electric vehicles and hydrogen fuel cell vehicles.

    Benefits of EV ecosystem

    • This will not only help the nation conserve foreign exchange but also make India a global leader in manufacturing of EVs and better comply with the Paris Climate Change Agreement..
    • Battery demand creation: All three schemes cumulatively expect an investment of about Rs 1,00,000 crore which will boost domestic manufacturing and also facilitate EVs and battery demand creation along with the development of a complete domestic supply chain and foreign direct investment in the country.
    • Reduction of oil import bill: The programme envisages an oil import bill reduction of about Rs 2 lakh crore and import bill substitution of about Rs 1.5 lakh crore.

    Conclusion

    India’s push for EV ecosystem is in line with the country’s climate change commitments, will help boost manufacturing sector and also help ensure energy security.

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  • International Space Agencies – Missions and Discoveries

    A launch window for India as a space start-up hub

    op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- India as a space start up hub

    Context

    After the launch of Sputnik in 1957, space race is on again, but this time, private players are on the power field. This has huge implications for original equipment manufacturers (OEMs) in the space sector in India and is a promising venture for global investors.

    Insignificant share of India in space economy

    • 2% India’s share: The space economy is a $440 billion global sector, with India having less than 2% share in the sector.
    • While total early-stage investments in space technologies in FY21 were $68 billion, India was on the fourth place with investments in about 110 firms, totalling not more than $2 billion.

    Reasons for India’s insignificant private participation

    • Absence of a framework: The reason for the lack of independent private participation in space includes the absence of a framework to provide transparency and clarity in laws.
    • Brain drain: Another aspect to throw light on is the extensive brain drain in India, which has increased by 85% since 2005.
    • Policy bottlenecks: Brain drain can be linked to the bottlenecks in policies which create hindrances for private space ventures and founders to attract investors, making it virtually non-feasible to operate in India.

    Suggestions

    • The laws need to be broken down into multiple sections, each to address specific parts of the value chain and in accordance with the Outer Space Treaty.
    • Dividing into upstream and downstream: Dividing activities further into upstream and downstream space blocks will allow legislators to provide a solid foundation to products/services developed by the non-governmental and private sectors within the value chain.
    • Timeline on licensing: With the technicalities involved in the space business, timelines on licensing, issuance of authorisation and continuous supervision mechanism need to be defined into phases.
    • Insurance and indemnification clarity: Another crucial aspect of space law is insurance and indemnification clarity, particularly about who or which entity undertakes the liability in case of a mishap.
    • In several western countries with an evolved private space industry, there is a cap on liability and the financial damages that need to be paid.
    • Need to generate own IP: Currently, many of the private entities are involved in equipment and frame manufacturing, with either outsourced specifications or leased licences.
    • However, to create value, Indian space private companies need to generate their intellectual property for an independent product or service with ISRO neither being their sole or largest customer nor providing them IP and ensuring buy-backs.

    Possibilities for India and the government’s effort

    • India currently stands on the cusp of building a space ecosystem and with ISRO being the guiding body, India can now evolve as a space start-up hub for the world.
    • Already 350 plus start-ups such as AgniKul Cosmos, Skyroot Technologies, Dhruva Space and Pixxel have established firm grounds for home-grown technologies with a practical unit of economics.
    • Last year the Government of India created a new organisation known as IN-SPACe (Indian National Space Promotion and Authorisation Centre) which is a “single window nodal agency” established to boost the commercialisation of Indian space activities.
    • A supplement to the Indian Space Research Organisation (ISRO), the agency promotes the entry of the Non-Government Private Entities (NGPEs) in the Indian space sector.

    Consider the question “Examine the factors responsible for hindering the participation of the private sector in India’s space industry? Suggest the ways to increase the participation of private sector.”

    Conclusion

    To continue the growth engine, investors need to look up to the sector as the next “new-age” boom and ISRO needs to turn into an enabler from being a supporter. To ensure that the sky is not the limit, investor confidence needs to be pumped up and for the same, clear laws need to be defined.

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    Back2Basics: The Outer Space Treaty

    • The Outer Space Treaty was considered by the Legal Subcommittee in 1966 and agreement was reached in the General Assembly in the same year ( resolution 2222 (XXI)).
    • The Treaty was largely based on the Declaration of Legal Principles Governing the Activities of States in the Exploration and Use of Outer Space, which had been adopted by the General Assembly in its resolution 1962 (XVIII) in 1963, but added a few new provisions.
    • The Treaty was opened for signature by the three depository Governments (the Russian Federation, the United Kingdom and the United States of America) in January 1967, and it entered into force in October 1967.
    • The Outer Space Treaty provides the basic framework on international space law, including the following principles:
    • The exploration and use of outer space shall be carried out for the benefit and in the interests of all countries and shall be the province of all mankind;
    • Outer space shall be free for exploration and use by all States;
    • Outer space is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means;
    • States shall not place nuclear weapons or other weapons of mass destruction in orbit or on celestial bodies or station them in outer space in any other manner;
    • The Moon and other celestial bodies shall be used exclusively for peaceful purposes;
    • Astronauts shall be regarded as the envoys of mankind;
    • States shall be responsible for national space activities whether carried out by governmental or non-governmental entities;
    • States shall be liable for damage caused by their space objects; and
    • States shall avoid harmful contamination of space and celestial bodies.

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  • With India’s demographic transition, come challenges

    op-ed snap | Polity | Mains Paper 2: Federalism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: TFR and replacement rate

    Mains level: Paper 2- Regional demographic variation and its implications for federalism in India

    Context

    Recent results from National Family Health Survey-5 (NFHS-5) suggest that we are entering an era where we will have to tackle these challenges.

    A milestone in India’s demographic history: TFR at 2.0

    • NFHS-5 places the total fertility rate (TFR) at 2.0.
    • With two parents having two children, we have reached a replacement level of fertility.
    • Due to many young people, the population will continue to grow, but the replacement level fertility is a significant milestone in India’s demographic history.
    • This decline is spread evenly across the country, with 29 states and UTs having a TFR of 1.9 or less, with seven below 1.6.
    • All southern states have a TFR of 1.7-1.8, similar to that of Sweden.
    • Even states that have not reached replacement fertility — Bihar and Uttar Pradesh — seem to be headed in that direction.
    • Part of the original coterie of lagging states, Madhya Pradesh and Rajasthan both have achieved TFRs of 2.0.

    Challenge: Supporting the ageing population

    • Supporting ageing population: As fertility declines, the proportion of the older population grows, and societies face the challenge of supporting an ageing population with a shrinking workforce.
    • This challenge is greater for leaders at the beginning of the demographic transition — Kerala and Tamil Nadu.
    •  Interestingly, these are also among the more prosperous states in India, whose economic activities increasingly rely on migrant labour from other states.
    • Many industries such as auto parts manufacturing and construction in southern states rely on semi-skilled migrants, often transported under contractual arrangements, from northern and eastern states, particularly Bihar, Uttar Pradesh and Odisha.

    Rethinking the critical dimension of Indian federalism

    • Dependence on migrat workforce: Many industries such as auto parts manufacturing and construction in southern states rely on semi-skilled migrants, often transported under contractual arrangements, from northern and eastern states, particularly Bihar, Uttar Pradesh and Odisha.
    • Allocation of political power: While the Indian constitution mandates allocation of Lok Sabha seats across states in proportion to their population via the Delimitation Commission, the Emergency-era 42nd amendment froze seat allocation to the population share of states in the 1971 Census.
    • Equity consideration in central allocation to states: The division of central allocation to states is another area where population concerns have dominated equity considerations.
    • Much of the Centre-state revenue sharing occurs through recommendations of various Finance Commissions.
    • The sixth to fourteenth Finance Commissions allocated resources between states using the 1971 population shares of various states.
    • The Fifteenth Finance commission used Census data from 2011, but it also added the criteria of demographic performance, rewarding states with lower TFR.

    Type of demographic policy India needs to pursue

    • Pursue policy followed by China? Does India want to pursue China’s route of sharply lower fertility, with a large number of families stopping at one child, or are we content with moderately below replacement fertility of about 1.7-1.8?
    • If the latter, we are well-positioned to head in this direction.
    • Issues faced by China: while very low fertility provides a temporary demographic dividend with a reduced number of dependents to workers, the increased burden of caring for the elderly may become overwhelming over the long term.
    • Advantage of Regional demographic variation in India: India is fortunate that its demographic dividend may be smaller, but is likely to last for a more extended period due to regional variation in the onset of the fertility decline.
    • As southern states struggle with the growing burden of supporting the elderly, northern states will supply the workforce needed for economic growth.
    • Economic expansion: The increasing pace of migration may help shore up economic expansion in the south with its shrinking workforce augmented by workers from other states.

    Consider the question “Examine the influence of regional demographic variation on the fedaralism in India? How such variation can help India?”

    Conclusion

    The Sixteenth Finance Commission and the next Delimitation Commission must be freed from the burden of managing the demographic transition, focused on carrying out their tasks in the best interests of Indian federalism.

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