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The Big Picture - Takeaways from India-China Strategic Dialogue

Takeaways from India-China strategic dialogue  Archives TOPIC: General Studies 2 India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Effect of policies and politics of developed and developing countries on India's interests The key takeaways from the dialogue: Background There were quite a few issues that were discussed including Afghanistan, nuclear issue but two differences overshadow other issues between a recently held India and China strategic dialogue to increase bilateral ties. The differences were over China’s reluctance to support India’s inclusion in NSG as well as the UN ban (1267 resolution in the UNSC) on Jaish-e-Mohammad chief Masood Azhar. While the Chinese ambassador to India claimed that India should not rush into things and expect quick resolution to the differences, India turned down China's request to provide more solid evidence against Azhar to get him banned. Indian Foreign Secretary said that though China was open to India's application for membership in NSG, China is caught upon its view of procedures and processes which is unlike others in the group. Even the media on both the sides highlighted these issues predominantly. Now it appears that other issues also came onto the table including the possibility that perhaps India and China could work toward some kind of a common objective. Over the last couple of years, the situations have become even more complicated. The differences and the outstanding disputes between two countries are very long-standing and they have defied solution over the years. Afghanistan angle Right now, India is already playing a more significant role in Afghanistan than China. Whatever China is doing in relation to Afghanistan is through the proxy of Pakistan and also has certain economic and financial weight that goes along with any Chinese initiative in the region. At one level, it is intriguing and also welcomed if India and China can indeed find a common objective in a regional context given the fact that Pakistan has led to high degree of dissonance as far as India and China are concerned. OBOR has central Asia as focus and major connectivity with Pakistan. Hence at this stage, it is important for India to remain invested in Afghanistan. From 9/11 onwards, there is a strong case for India to remain invested in the development sector with Afghanistan and also see how it pans out as far as the politics and security are concerned. But now, it is forming an intriguing pattern wherein Russia and China seem to be in a way consulting and coordinating their positions wrt Afghanistan. Russia is now willing to talk about the equivalent of bringing the Taliban onboard as it has its own reasons for making this particular position. So there is a kind of harmonisation of positions between Russia, China and Pakistan in relation to Afghanistan. In this context, it would be prudent for India to remain invested in developments within Afghanistan and see how things are going to play out over the next one year. Pakistan angle China is much more heavily invested in Pakistan than it ever was and therefore in terms of India’s foreign policy challenges vis a vis Pakistan, China is very determinedly ranged on Pakistani side with their huge investment which goes through Indian sovereign territory in Pakistan Occupied Kashmir. The comment that India should not go rushing in and provide more solid evidence is hogwash. If 4 out of the P5 agree on Azhar and China alone puts a technical hold for the second time, the conclusion is that China is not willing to do it for political reasons and support Pakistan. Strategy change needed? The new dialogue is called restructure strategic dialogue, but at the end of it, same issues are discussed with same common grounds. There have been 30 dialogue mechanisms that have taken place in these years. India cannot change strategy without having a reason for it. India must remain engaged in Afghanistan for political, financial and security reasons. Changing of the strategy will depend on circumstances. There needs to be flexibility within the parameters of core national interest policy to be able to adjust policies. Those are questions of nuances and tactics. So, nothing has been done wrong in the past which needs to be corrected now. It is not a question of right or wrong. It is about then and now. The change will come intrinsically because foreign policy is dynamic. The situation does not say stay static.  The attitudes of different countries towards the Taliban or different factions of the Taliban keep on changing over the periods of time. There has to be central focus that we must be engaged with Pakistan because it is extremely important for India’s security and for all those reasons why India went into Afghanistan. As the situation evolves, India must be present to react, to protect India’s national interests effectively. Increase platforms for discussion The core issues still remain- the boundary dispute, the adverse trade balance. The dialogue is most welcome but the higher the level of dialogue, the better.  But they need more dialogue mechanisms as the forums for discussion of all outstanding issues are actually quite narrow..  For instance, there can be a high level difference dialogue and perhaps the only instruments that are present are the ‘peace and tranquillity agreement’ 1993 and 1996. Instead of complaining about adverse trade balance, there should be a particular position and a trade representative so that two countries can have a new forum to discuss all outstanding issues related to trade.  This way the decision-making process is complemented by new facet which enters into the relationship. This doesn't encroach upon the core issues where the countries differ with each other. Reason for not having a formal defence dialogue between the two countries is that the politics is not very enabling at this point in time. India and China have not found any common ground on the core issues which have been points of both divergence, suspicion and mutual mistrust on both sides. There have been old issues like territorial and border dispute that hasn't moved in any substantive way. If there has been any movement it has remained very cloistered and only between the senior officials. Conclusion Last year India went far away in dealing with China- it was a period of tension, where there were name callings, especially when India said that one country is responsible for stalling India’s entry into NSG and holding China responsible on Azhar issue. So, time and again, India is pushing China and trying to put pressure on it, not rush into things. It's a relationship that has gone on for decades where both countries have had ups and downs. However the dialogue is crucial in trying to achieve anything as this is a step-by-step process. Though India has said that the dialogue was constructive and positive, it is difficult to conclude something after a single round of talks. The talks may have had some substantive content but optimistic conclusion is difficult to draw. India must neither be hyper about its strengths or weakness unless there can be follow through with it. In few years, China is going to be the largest economy in the world. Its economy is five times larger than India and is highly militarized a very efficient military.  It has a very clear vision of what it wants to be in the world-  first dominate Asia and later on perhaps be a  superpower. In that context India has to see its strengths and see its national interest. There is no alternative to engaging with China. Connecting the dots: Will there be improvement in India- China relations with renewed dialogues? Comment.  

IASbaba's 60 Day Plan- Prelims Test 2017 GEOGRAPHY & CURRENT AFFAIRS [Day 4]

Hello Friends So, here we are with the 4th Day of 60 Days Plan. It is the third edition of 60 Days program but seems like the first one because of the excitement involved everywhere, including us :) We are equally excited and pumped. Our Team is working hard to make you realize your dream. Do not take it insincerely and let us down. Your faith and participation has to be in sync with the amount of hard work and effort we do. Let us pledge to make it a big game changer (better than last year) in the next 60 days! Importance of Self - Tracking: Learning from Last Year Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self track yourself after updating the score. In the end you can cross check your performance through disqus profile. It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes. The importance of this initiative stands time bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice. So, take out few hours from your schedule and make it a revision exercise. How you can make the best use of it? Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only.  Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then? The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So make effort to know the answers of all questions. Do not cheat :P Baba's Gyan for REVISION Many of you, almost all, asks about effective revision strategy! Can there be any? Let us tell you something Baba does :D  You guys study a lot and there is no issue with the hard work that has been put in. But when it comes to input-output comparison, your performance is questionable. What to do? Just do this for a Week: Go to bed before stipulated time of your sleep, at least 1 hour before. Close your eyes and try to relax your mind. You should attain full comfort and calmness. Do this on the First Day: Imagine the full story of a recent movie that you have watched. Try to recollect from starting to end. See, whether you are able to depict the clear picture or not! Now, do the same for everything you learnt from morning specially the ones you struggled with. Since it is fresh, most of the things should flow into your mind smoothly. Check what is your recollecting capacity. For example, if you prepared Polity Day 2: Topics- Try to collect all important concepts and learning of the day. Trust us, this exercise if done with sincerity will give you immense confidence as well as boost your performance. There is no ideal time for revision and there cannot be any specific date put for it, as commonly done. This will always expose your weaknesses the very same day and if you tend to forget something, can always get back to consolidate and cement it. REPEAT IT FOR A WEEK & SEE THE MAGIC :D  Must to Do: Read the detailed article regarding Micro Analysis Matrix and follow the guidelines- Click Here Try to hold your nerves and learn to control the temptation. This is very important art to learn and implement!   Are you ready? Let's start [Day 4]: GEOGRAPHY & CURRENT AFFAIRS   ARCHIVES TOPICS: Indian Geography – River system in India - Indian River System Himalayas River system – Indus, Ganga, Brahamaputra Peninsular River Systems PRELIMS MCQ’s: Q.1) Consider the following: These forests are the most wide spread forests of India. These regions experience seasonal changes. Hardwood trees such as sal, teak, neem and shisham are found in this region. The above given characteristic features belong to – Tropical Evergreen Forests Tropical Deciduous Forests Temperate Evergreen Forests Temperate Deciduous Forests Q.2) Match List I with List II and select the correct answer using the code given below the Lists: List I                                        List II (Drainage Patterns)               (Description) Dendritic                                 1. rivers discharge their waters from all directions in a                                                          lake or depression Radial                                      2. rivers originate from a hill and flow in all directions Trellis                                      3. drainage pattern resembles the branches of a tree Centripetal                           4. Secondary tributaries join primary tributaries of                                                                     rivers at right angle Code: A – B – C – D 1 – 2 – 3 – 4 3 – 4 – 2 – 1 3 – 2 – 4 – 1 1 – 4 – 3 – 2  Q.3) Consider the below statements with regard to River Chenab: Chenab is the largest tributary of the Indus. It is formed by two streams, the Chandra and the Bhaga. It runs parallel to the Pir Panjal range. Which of the statements given above is/are correct? 2 only 2 and 3 only 1 and 3 only 1, 2 and 3 Q.4) Shimsha, Hemavati, Arkavati, Bhavani are tributaries of – Krishna Godavari Narmada Kaveri Q.5) Consider the below statements with regard to Himalayan and Peninsular river system: Peninsular rivers are not as long as the Himalayan rivers. Peninsular rivers are smaller in number, whereas Himalayan rivers are larger in number. Himalayan rivers follow more or less straight course and do not change their course. Peninsular rivers are useful for irrigation and navigation. Which of the statements given above is/are correct? 1 and 2 only 1, 2 and 4 only 1, 3 and 4 only 1, 2, 3 and 4 Q.6) What are the benefits of temperate cyclones from the Mediterranean sea to India? It causes rainfall in Punjab and Haryana It is highly beneficial for kharif crops It causes torrential rainfall in Central parts of India and northern parts of southern Peninsula Both (a) and (b) Q.7) Which state has maximum different types of climatic regions in India? Tamil Nadu Gujarat Madhya Pradesh Maharashtra Q.8) Which of the below given pairs are rightly matched? Koteshwar Dam/Tehri Reservoir : : Bhagirathi River Ranjit Sagar Dam : : Chambal River Daudhan dam : : Ken-Betwa River Gobind VallabhPant Sagar : : Sutlej Choose the appropriate code: 3 and 4 only 1 and 3 only 1, 3 and 4 only All of the above Q.9) Consider the diagram below: Letters A, B, C and D in the diagram represent sequential arrangement of basic topographical features along a coast. Identify the correct sequence from the codes given below: Land, continental shelf, continental slope, deep sea plain Land, continental slope, continental shelf, deep sea plain Mountain, sea coast, continental slope, deep sea plain Hill, continental slope, ocean deep, deep sea plain Q.10) What are the favourable conditions for the river capture to occur? Higher volume of water so that velocity and discharge may be sufficiently high Steep channel gradient Relatively broad valley More sediment load Choose the correct answer from the code below: 1 and 2 only 1 and 3 only 1, 2 and 3 only 1, 2, 3 and 4 Q.11) Consider the following: It rises in the Malwa plateau. It flows northwards. It is famous for its badland topography. Identify the correct river from below: Narmada Tapi Chambal Mahi Q.12) Arrange the following rivers from North to South: Tapti Narmada Krishna Godavari Choose the correct answer from the code given below: 1 – 2 – 3 – 4 2 – 1 – 4 – 3 2 – 1 – 3 – 4 1 – 2 – 4 – 3 Q.13) Which of the below given are conditions that favour the formation of deltas? Shallow sea, adjoining the delta Strong current at the river mouth which leads to formation of tides Active vertical and lateral erosion in the lower course of the river to supply large amount of sediments Choose the correct answer from the code below: 1 only 3 only 2 and 3 only 1 and 2 only Q.14) Consider the following statements: Erosion is distinguished from weathering as no transportation of material is involved in case of erosion. Abrasion is the process of gradual destruction of rocks through physical, chemical and biological processes caused by wind, water, climate change etc. Which of the above statement(s) is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.15) Winter monsoons do not cause much rainfall in India because – They move from land to the sea Due to anti cyclonic circulation on land They have little humidity All of the above Q.16) Income tax in India is progressive regressive proportional based on benefit principle Q.17) India ranks a low 39th in terms of fixed broadband adoption among Asia Pacific countries according to the report ‘State of ICT in Asia and the Pacific 2016: Uncovering the Widening Broadband Divide’. Consider the following statements with respect to the report. The report is released by Internet Governance Forum (IGF) The subscriptions per 100 inhabitants in the ESCAP region are ahead of Latin America and the Caribbean countries but far lower than Europe and North America Which of the following statements are correct? Only 1 Only 2 Both 1 and 2 None Q.18) Consider the following statements with respect to Organisation of Islamic Cooperation (OIC) India and Pakistan are members of the OIC All the GCC countries are members of OIC It is headquartered at Abu Dhabi, UAE Which of the following statements is/are correct? Only 2 1 and 2 1 and 3 None of the above Q.19) Consider the following statements about ‘Access to Justice’ Project The project aims to address the legal needs of the marginalized and vulnerable sections of society, particularly women, children, and Scheduled Castes and tribal communities, who do not have the requisite means to ensure that their rights are guaranteed The first phase of the project focused on North Eastern States and Jammu and Kashmir The project is anchored with the Department of Justice, Ministry of Law and Justice Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.20) Recently Supreme Court said it may refer a plea challenging the validity of the Jammu and Kashmir (J&K) resettlement Act to a constitution bench if it finds that some issues needed interpretation of the Constitution. Consider the following statements with respect to J&K resettlement Act It envisages grant of permit for resettlement of Pakistani nationals who had migrated to Pakistan from Jammu and Kashmir after India’s partition People of Jammu and Kashmir who migrated to Pakistan from 1947 could be considered for their return but their descendants could not be Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.21) Consider the following statements about National Housing Bank (NHB) The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing It is wholly owned by Reserve Bank of India ‘Residex’, India’s first official residential housing price index was launched by NHB Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.22) Recently, which of the following communities was granted Scheduled Tribe status? Kattunayakan Malalikuravan Kuruman Irular  Q.23) Consider the following statements about ‘UJALA’ scheme It is a LED based ‘Domestic Efficient Lighting Programme’ Electricity Distribution Company and Energy Efficiency Services Limited (EESL) are the implementing agencies It is mandatory for all the states to adopt this scheme Select the correct statements 1 and 3 1 and 2 2 and 3 All of the above Download the Solution: Solution will be uploaded by 9 pm. P.S- Do participate in the comment box and discuss among yourselves. Your feedback, encouragement, suggestions and appreciation matters :)  

IASbaba’s Daily Current Affairs – 29th March, 2017

IASbaba’s Daily Current Affairs – 29th March 2017 Archives ECONOMY TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth Investment models. Bilateral Investment Treaties and concerns Introduction In a globalised economy foreign investment and multilateral agreements are crucial in today’s economic architecture. Especially in a time period where protectionism is on the rise and with events like Brexit and new government in USA concern have risen for developing and progressive economies. Issue: With several bilateral investment treaties lapsing on March 31, FDI inflows could take a hit. By this April 1, the government would have taken India back to the pre-1991 inward-looking economic era as far as India’s approach to bilateral investment treaties (BITs) is concerned. History: Till the early 1990s, India didn’t sign BITs because foreign investment was not considered significant in a statist India. The absence of BITs meant foreign investors couldn’t use international arbitration to hold India accountable under international law for any detrimental regulatory overreach. So, when the Foreign Exchange Regulation Act that came into force in 1974 required a foreign company to convert foreign equities into minority holdings of 40%, many helpless foreign companies like Coca-Cola, IBM, Kodak and Mobil either quit India or applied to the government to do so. In 1991, India lifted its self-imposed economic exile by starting the process of experimenting with the market and wooing foreign investors. As part of this image makeover, India started signing BITs from the early 1990s. The signing spree continued unabated till 2010 with India inking BITs with 83 countries. However, rattled by many BIT claims brought by foreign investors from 2011 onwards, last year, India unilaterally issued BIT termination notices to 58-member countries. Reportedly, these BITs would lapse on March 31 after the expiry of the mandatory one-year notice period. Although the terminated BITs will continue to be relevant for existing foreign investment in India and Indian investment in these countries for the next 10-15 years due to survival clauses, any new investment, either from these 58 countries to India or vice versa, shall not enjoy BIT protection as was the case before 1991. BITs and foreign investment Some argue that foreign investment inflows to India are not dependent on BITs. Two studies question this wisdom. The first, examines the impact of BITs on FDI inflows in 15 Asian developing countries including India from 1980-81 to 1999-2000. The study shows that BITs signed by these 15 countries with developed countries had a stronger and significant impact on FDI inflows in these 15 countries. However, BITs signed by these 15 countries with developing countries didn’t have much impact on foreign investment inflows. Till the year 2000, out of the 14 BITs India signed, nine were with developed countries. Therefore, BITs had a significant impact on FDI inflows in India, which rose from $393 million in 1992-93 to $4,029 million in 2000-01. The second study, a very recent one considers the impact of BITs on FDI inflows in India from 2001-2012. This study also demonstrates that BITs signed by India contributed to rising FDI inflows in the said period by providing protection and commitment to foreign investors. The significance of BITs in attracting investment was also emphasised by Canada’s Trade Minister during his recent visit to India. The Minister said that absence of an India-Canada BIT is restricting the scope and volume of investments that Canadian pension funds can make in India. It is nobody’s case that BITs alone determines FDI inflows- But they do play a critical role in mitigating regulatory risks Thus encouraging investors to invest — critical for India, which has a dubious distinction of not being a friendly place to do business in. The OECD classifies India among countries that impose heavy regulatory restrictions on foreign investment. Recent instances of Central government meddling with private contracts between Indian seed companies and Monsanto; threatening Amazon, the e-retailer company, with visa-cancellation of its staff if it didn’t stop selling a product in a third country that allegedly hurts Indian sensibilities; overnight withdrawal of 86% of legal tender from circulation without considering its impact on businesses, have all strengthened this image. Few takers for the Model BIT To be fair to the government, it wants to sign new BITs with all these 58 countries based on the new Model BIT adopted in 2016. However, most developed countries have not shown much interest in the Model BIT because instead of striking a balance between investment protection and state’s right to regulate, it tilts towards the latter. There are fundamental differences between the Indian approach and the Canadian and European approach to protection of foreign investment, as reflected in the investment chapter of the recently signed EU-Canada Comprehensive Economic and Trade Agreement (CETA). First, the EU-Canada CETA contains a ‘most favoured nation’ (MFN) provision — a cornerstone of non-discrimination in international economic relations — which is missing in the Indian Model BIT. Second, the Indian Model BIT, unlike the EU-Canada CETA, mandatorily requires foreign investors to litigate in domestic courts for five years before pursuing a claim under international law. Third, the EU-Canada CETA provides protection to foreign investors in situations where the state goes back on the concrete representations it made to lure an investor, which the investor relied upon while investing. The Indian Model BIT is silent on this, thus exposing foreign investors to regulatory risks. Fourth, the EU-Canada CETA talks of pursuing the establishment of a multilateral investment court to settle investment disputes. Will India support such a proposal? Conclusion: It is important that government takes the global best practices adopts and adapts to Indian needs. But BITs being crucial tool w.r.t investment we need to ensure that global and holistic acceptance is sought for increasing the coverage and spread. Connecting the dots: Critically analyse the need to renegotiate the BITs in a time bound manner and the framework needed to be worked out.   NATIONAL  TOPIC: General Studies 2 Role of civil services in a democracy Government policies and interventions for development in various sectors and issues arising out of their design and implementation Lateral movement in civil services Recently, the central government is considering stepping up lateral movement of experienced officers from various Central and State services at the level of joint secretary. Such step is taken to fill up the shortfall of experienced IAS officers eligible to be appointed to senior positions. This move is expected to give opportunity to those in specialised services to move into mainstream administration and bring their domain expertise in specific issues into policymaking and governance. It is also expected to reverse some of the appropriation of top positions by the IAS lobby from non-IAS services over the last few decades. Lateral movement from private sector However, simply increasing the numbers is not important. Capability and skills, particularly in the middle-to-top strata of the bureaucracy have to be improved urgently. In US and UK, direct hires of experienced professionals, particularly from the private sector, is also required, if governance delivery is to meet the needs of a complex and rapidly evolving economy. But attracting lateral movement from other services to fill vacancies in the bureaucracy is far easier than attracting talent from the private sector. This is not for the reason that remuneration is not competitive, but also because of the vast difference in working conditions. Skilled professionals expect a certain degree of operational freedom which is difficult with current bureaucratic style of functioning as well as constant political interference. Government of India has, in the past, also inducted outside talent from time to time into the higher tiers of government usually in advisory positions but occasionally even in key administrative assignments. For example the Chief Economic Advisor, Government of India is traditionally a lateral entrant who is below 45 years and an eminent economist. The long term solution Lateral movement between different cadres at centre and state this time to fill the vacancies is a short term fix. To fill up the managerial positions at top bureaucratic levels, there is a need of a policy that actively seeks the best talent for various positions, whether such talent is to be found within or outside the current bureaucratic system is government’s prerogative. The government could define either a certain number or certain specified positions in the administrative structure to be filled by lateral appointments. These should be advertised at the highest level to get the best resources. The government must also put into place a system that reviews and suitably rewards outstanding performance of such appointees to attract more such talent. A larger pool with diversity of experiences and domain expertise can ensure that policies have a better connect with ground realities, and get implemented more efficiently. India can learn from Singapore which has close association of public and private sector. Very high quality individuals from the private sector routinely join the public sector and excellent civil servants move easily into the private sector. This kind of permeability brings the two sectors very close to each other: Public servants as they join the private sector, have a very good idea about the rules, regulations and compliance issues and have a very good bird's eyeview of the entire industry be it manufacturing, finance or tourism. Similarly, those who join the public sector from the private sector, bring with them the virtues of efficiency and work ethics. Thus, it is a very healthy mix to do administration. Further, such lateral movement allows academics to easily join the public sector and contribute significantly in the areas of public health and economics. The problems The idea of lateral recruitment is good as long as it concerns highly technical aspects of governance like Department of Information technology, cybercrime cells, trade and commerce etc. This is because since most of the bureaucrats are generalist they are less adept in handling technical areas required for updating and maintaining quickly and ever-growing areas of information technology and related issues. For areas like agriculture, power and ministries related to urban supply and socio development, expertise and knowledge of bureaucrats are normally at par with lateral knowledge. There is a possibility that political interference may lead to favouritism in making lateral appointments. Here, it affects the work efficiency of the department as well as promotes into nepotism in other departments too. Lateral entry only at top level policy making positions may have little impact on field level implementation, given the multiple links in the chain of command from the Union Government to a rural village. Efforts till now The 10th Report of 2nd ARC titled, “Refurbishing of Personnel Administration – Scaling New Heights” emphasises that 10% of posts at joint secretary level in Government of India should be open to lateral entry from state government services or private sector or academics etc. The present government has asked for formal comments from cadre controlling authorities to present their views and suggestions on the matter. In the last five years, the number of consultants in government departments has gone up manifold. But they are being recruited at junior level, thereby not allowing them to take key decisions. Also, there has been huge emphasis on inculcating corporate sector culture in the government after the new government was formed. IASbaba’s views It is high time that bureaucracy and political class recognise that the time is up for colonial style of governance to govern India as it is no longer effective or efficient. The concept of unified civil services needs a relook which promotes one-size-fits-all bureaucracy, recruited through a dated competitive examination system. Even the ARC felt that lateral entry as done in the past on an ad hoc basis can hardly be considered a suitable model of manpower planning since the present incumbents in government departments tend to resist entry of outside talent and the whole process remains personality driven and inchoate. There is therefore a need to institutionalize the process of induction of outside talent into the government. The lateral movement system opens up choice of top civil service appointees from different sources and also makes it possible for lateral entrants to bring in their own work culture which enables renewal and adaptiveness in government organizations. Connecting the dots: What is lateral entry in civil services? Critically examine its effect on functioning of bureaucracy and overall governance of the country. MUST READ SC's clarification on Aadhaar gives space for reforms Hindu   How to be a happy Indian Hindu   Cities at crossroads: When an open door policy is not enough Indian Express   Dear Irom Chanu Sharmila Indian Express   Time to nuke the storm in the teacup Livemint   A new paradigm for privacy Livemint   Explaining the sharp rise in the rupee Business Line   We need Aadhaar, and much more Business Line  

IASbaba's 60 Day Plan- Prelims Test 2017 GEOGRAPHY & CURRENT AFFAIRS [Day 3]

Hello Friends So, here we are with the 3rd Day of 60 Days Plan. It is the third edition of 60 Days program but seems like the first one because of the excitement involved everywhere, including us :) We are equally excited and pumped. Our Team is working hard to make you realize your dream. Do not take it insincerely and let us down. Your faith and participation has to be in sync with the amount of hard work and effort we do. Let us pledge to make it a big game changer (better than last year) in the next 60 days! Importance of Self - Tracking: Learning from Last Year Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self track yourself after updating the score. In the end you can cross check your performance through disqus profile. It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes. The importance of this initiative stands time bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice. So, take out few hours from your schedule and make it a revision exercise. How you can make the best use of it? Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only.  Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then? The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So make effort to know the answers of all questions. Do not cheat :P Baba's Gyan for REVISION Many of you, almost all, asks about effective revision strategy! Can there be any? Let us tell you something Baba does :D  You guys study a lot and there is no issue with the hard work that has been put in. But when it comes to input-output comparison, your performance is questionable. What to do? Just do this for a Week: Go to bed before stipulated time of your sleep, at least 1 hour before. Close your eyes and try to relax your mind. You should attain full comfort and calmness. Do this on the First Day: Imagine the full story of a recent movie that you have watched. Try to recollect from starting to end. See, whether you are able to depict the clear picture or not! Now, do the same for everything you learnt from morning specially the ones you struggled with. Since it is fresh, most of the things should flow into your mind smoothly. Check what is your recollecting capacity. For example, if you prepared Polity Day 2: Topics- Try to collect all important concepts and learning of the day. Trust us, this exercise if done with sincerity will give you immense confidence as well as boost your performance. There is no ideal time for revision and there cannot be any specific date put for it, as commonly done. This will always expose your weaknesses the very same day and if you tend to forget something, can always get back to consolidate and cement it. REPEAT IT FOR A WEEK & SEE THE MAGIC :D  Must to Do: Read the detailed article regarding Micro Analysis Matrix and follow the guidelines- Click Here Try to hold your nerves and learn to control the temptation. This is very important art to learn and implement!   Are you ready? Let's start [Day 3]: GEOGRAPHY & CURRENT AFFAIRS   ARCHIVES TOPICS: Indian Geography – The Himalayas- The Greater Himalayas (Himadri), Lesser Himalayas (Himachal), Sub-Himalayas (Siwaliks) Peninsular Plateau and Peninsular Mountains The North Plains and the Coastal plains Indian Desert Islands   PRELIMS MCQ’s:  Q.1) Purvachal or the Eastern hills and mountains comprises Naga Hills Patkai Hills Dafla Hills Lushai Hills Choose the correct answer from the code given below: 1, 2 and 3 only 1, 2 and 4 only 1 and 2 only 2 and 4 only Q.2) Consider the below statements with regard to Western Ghats and Eastern Ghats: The mean height of the Western Ghats is more than that of Eastern Ghats. The Eastern Ghats do not form a continuous chain like the Western Ghats. The Eastern Ghats average width is less than that of Western Ghats. Which of the statements given above is/are correct? 1 and 2 only 2 and 3 only 1, 2 and 3 None Q.3) Consider the following characteristic features about Bhabar: It is the largest part of Northern plain. It contains calcareous deposits locally known as 'Kankar '. Bhabar consists of old alluvial deposits, whereas Khadar consists of new alluvial deposits. Which of the statements given above is/are correct? 3 only 2 and 3 only 1 and 2 only None Q.4) Which among the following is/are not the extensions of Peninsular plateau? Rajmahal hills Gir range Karbi-Anglong Cardamom hills Choose the correct answer from the code given below: 3 only 2 and 3 only 1 and 2 only None Q.5) Among the following riverine islands, choose the one which recently became India's first island district? Majuli island in the Brahmaputra Umananda island in the Brahmaputra Lohachara island in the Hooghly Sendra island in the Loktak Q.6) Match List I with List II and select the correct answer using the code given below the Lists: List I                                       List II (Plant)                                 (Natural vegetation type) Walnut                        1. Alpine Birch                            2. Himalayan moist Shisham                       3. Moist deciduous Ebony                          4. Tropical evergreen Code: A – B – C – D 2 – 3 – 4 – 1 2 – 1 – 3 – 4 1 – 2 – 3 – 4 1 – 3 – 2 – 4 Q.7) Why Western Ghats in Karnataka receive more monsoon rainfall than Maharashtra and Kerala? Due to continuous topography of the Ghats in Karnataka. Due to the greater width of the mountains in Karnataka. Mountains of Karnataka have very steep slopes. Choose the correct answer from the code given below:     1 and 2 only 1 and 3 only 1, 2 and 3 None Q.8) Which of the statements given below is/are not true in regard to western coastal plain? It is a narrow belt. Eastern coastal plain receives comparatively low rainfall but the Western coastal plain receives heavy rainfall. West Coast Plain is infertile and agriculturally not prosperous except in the Malabar Coast. It is an example of emergent coastal plain. Q.9) Which of the statements given below is/are correct about Terai region? Terai is an ill-drained, damp (marshy) and thickly forested narrow tract to the south of Bhabar running parallel to it. It is a swampy lowland with silty soils. Terai soils are rich in phosphate and organic matter but are deficient in nitrogen. Choose the correct answer from the code given below:     1 only 1 and 2 only 2 and 3 only 1, 2 and 3 Q.10) Consider the following about Laterite Soils and select the incorrect statement: They are formed under conditions of high temperature and heavy rainfall with alternate wet and dry periods. They are rich in bauxite or ferric oxides. They are fertile and suitable for growing plantation crops like tea, coffee, rubber. They are found on the summits of Western Ghats and Eastern Ghats.  Q.11) Natural vegetation in tropical rainforest is luxuriant, because of – Seasonal change which facilitates nutrient absorption. Hot and wet climate throughout the year. Fertile soil. Rapid nutrient cycling. Choose the correct answer from the code given below: 1 and 3 only 2 and 4 only 2, 3 and 4 only 1, 2, 3 and 4 Q.12) Match List I with List II and select the correct answer using the code given below the Lists: List I                            List II (Region)                      (Vegetation) Tundra                           Conifers Selvas                             Epiphytes Savannas                       Mosses and Lichens Taiga                              Grasses and trees Code: A – B – C – D 1 – 2 – 4 – 3 3 – 4 – 2 – 1 3 – 2 – 4 – 1 1 – 3 – 4 – 3 Q.13) Consider the following: Adjutant stork Two horned rhino Rattle snake Which of the above is/are naturally found in India? 1 only 2 and 3 only 1 and 2 only 1 and 3 only Q.14) Sikkim and Darjeeling Himalayas are best suitable for tea plantations due to – Moderate slope Thick soil cover with high organic content Well distributed rainfall throughout the year Mild winters Choose the correct answer from the code given below: 1 and 3 only 2 and 4 only 2, 3 and 4 only 1, 2, 3 and 4 Q.15) Match List I with List II and select the correct answer using the code given below the Lists: List I                            List II Bhotias            1. nomadic groups found in Himachal and Uttaranchal Himalayas Pats                 2. group of higher plateaus having lateritic capped tops Kankar             3. soil containing calcareous deposits Karewas          4. thick deposits of glacial clay and other materials embedded with     moraines. Code: A – B – C – D 2 – 3 – 4 – 1 1 – 3 – 4 – 2 1 – 2 – 3 – 4 4 – 2 – 3 – 1 Q.16) Select the incorrect pair/s from the below: Marine west coast : : Temperature cycle is moderated by marine influence. Dry mid-latitude : : Strong temperature cycle with large annual range. Warm summers to hot and cold winters to very cold. Moist continental : : Temperature range is moderate with warm to hot summers and mild winters. Mediterranean : : Warm summers and cold winters with three months below freezing. Very large annual temperature range. Choose the correct answer from the code given below: 3 only 2 only 3 and 4 only 1 and 2 only Q.17) Rajiv Gandhi National Sadbhavana Award is an award for Outstanding Indian scientists for their research and contributions in the field of agriculture and environment Outstanding contribution towards promotion of communal harmony, national integration and peace Outstanding contribution towards literature Excellence in Science & Technology Q.18) Habitat Commitment Index (HCI) is released by World Economic Forum United Nations Development Programme World Bank None of the above Q.19) Consider the following statements about Tala-Maddale It is an ancient form of dance practiced in Odisha It normally focusses on episodes from the epics, Bhagavata and Puranas Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.20) ‘TARANG’ mobile app and web portal was launched to Promote citizen partnership in governance by channelizing their ideas, comments and suggestions to Central Ministries and associated organizations Monitor power transmission projects Provide all the Passport-related services to all the Indian citizens in a convenient and transparent manner Enhance connectivity of consumers with the urban power distribution sector by providing information to consumers on power outage, addressing complaints, power reliability etc. Q.21) “Operation Euphrates Shield” has been launched in Syria by which country? United States of America Russia Turkey Israel and Jordan  Q.22) Panglong Agreement is concerned with which of the following countries? North Korea and South Korea Burma (now Myanmar) Vietnam Cambodia Download the Solution: CLICK HERE P.S- Do participate in the comment box and discuss among yourselves. Your feedback, encouragement, suggestions and appreciation matters :)  

Yojana

YOJANA & KURUKSHETRA Magazine: FEBRUARY 2017

Download Yojana Magazines 2016 and 2015– Click here   Friends, Here we are with the FEBRUARY 2017,  edition of Yojana and Kurukshetra.   Mind Maps- Right Click on the image and then Save As         Click on the image to Download    

IASbaba's 60 Day Plan- Prelims Test 2017 POLITY & CURRENT AFFAIRS [Day 2]

Hello Friends So, here we are with the 2nd Day of 60 Days Plan. It is the third edition of 60 Days program but seems like the first one because of the excitement involved everywhere, including us :) We are equally excited and pumped. Our Team is working hard to make you realize your dream. Do not take it insincerely and let us down. Your faith and participation has to be in sync with the amount of hard work and effort we do. Let us pledge to make it a big game changer (better than last year) in the next 60 days! Importance of Self - Tracking: Learning from Last Year Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self track yourself after updating the score. In the end you can cross check your performance through disqus profile. It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes. The importance of this initiative stands time bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice. So, take out few hours from your schedule and make it a revision exercise. How you can make the best use of it? Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only.  Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then? The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So make effort to know the answers of all questions. Do not cheat :P Baba's Gyan for REVISION Many of you, almost all, asks about effective revision strategy! Can there be any? Let us tell you something Baba does :D  You guys study a lot and there is no issue with the hard work that has been put in. But when it comes to input-output comparison, your performance is questionable. What to do? Just do this for a Week: Go to bed before stipulated time of your sleep, at least 1 hour before. Close your eyes and try to relax your mind. You should attain full comfort and calmness. Do this on the First Day: Imagine the full story of a recent movie that you have watched. Try to recollect from starting to end. See, whether you are able to depict the clear picture or not! Now, do the same for everything you learnt from morning specially the ones you struggled with. Since it is fresh, most of the things should flow into your mind smoothly. Check what is your recollecting capacity. For example, if you prepared Polity Day 2: Topics- Try to collect all important concepts and learning of the day. Trust us, this exercise if done with sincerity will give you immense confidence as well as boost your performance. There is no ideal time for revision and there cannot be any specific date put for it, as commonly done. This will always expose your weaknesses the very same day and if you tend to forget something, can always get back to consolidate and cement it. REPEAT IT FOR A WEEK & SEE THE MAGIC :D  Must to Do: Read the detailed article regarding Micro Analysis Matrix and follow the guidelines- Click Here Try to hold your nerves and learn to control the temptation. This is very important art to learn and implement! Are you ready? Let's start [Day 2]: POLITY AND CURRENT AFFAIRS   ARCHIVES TOPICS: Fundamental Rights (FR) [Part III] Fundamental Duties [Part IV-A] Directive Principles of State Policy (DPSP) [Part IV] PRELIMS MCQ’s: Q.1) Article 15 provides that the State shall not discriminate against any citizen on grounds only of religion, race, caste, sex or place of birth. What does the word only signify here? The State shall discriminate on grounds religion, race, caste, sex or place of birth with legislation passed by the Parliament. Discrimination on other grounds is not prohibited. It protects only against arbitrary action of the state. None of the above. Q.2) Recently the Supreme Court has held ‘reservation in promotion’ invalid. Consider the following statements in this regard. The State does not have unbridled powers to provide promotion in reservation to the backward classes. The State must demonstrate backwardness, inadequacy of representation and maintenance of efficiency before providing reservation in promotions to Scheduled Castes and Scheduled Tribes employees. If the State does not justify this policy, it would violate Article 16. Choose the correct code: 1 and 2 only 2 only 1 only 1, 2 and 3 Q.3) Forcible Religious conversions violate which of the following Fundamental right? Freedom of conscience Right to profess Right to practice Right to propagate Q.4) With regard to Article 17, consider the following statements The term ‘untouchability’ has not been defined in the Constitution. Article 17 does not cover ‘social boycott’ of few individuals and their exclusion from public places. It protects only against untouchability practiced in public places. Choose the correct code: 1 and 2 only 1 only 1, 2 and 3 2 only Q.5) Consider following statements The principle of locus standi’ is not necessary in case of an order issuing writ of Habeas corpus Habeas corpus can be issued against both public and private individual. Choose the correct code 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.6)  Consider the following statements: Article 29 grants protection only to linguistic minorities and not to religious minorities. Under Article 30, all minorities shall have the right to establish and administer educational institutions of their choice. Choose the incorrect code from the above options: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.7) With regard to Directive Principles of State Policy, consider following statements These principles have origin in the Spanish Constitution. They are fundamental to the governance of the country Ambedkar described them as ‘Novel Features’ of Indian constitution. Select the correct code 1 and 2 only 1 and 3 only 1, 2 and 3 2 and 3 only Q.8) Which of the following does not belong to the Directive Principles of State Policy? Uphold and protect the sovereignty, unity and integrity of India Secure opportunity for healthy development of children Protect monuments, places and objects of historical importance. To organise agriculture and animal husbandry on modern and scientific lines Q.9) ‘Economic Justice’ the objective of Indian Constitution has been provided in the Preamble and Fundamental Rights the Fundamental Rights and the Directive Principles of State Policy the Preamble and the Directive Principles of State Policy None of the above Q.10) Consider the following statements All Fundamental Rights can be suspended at the time of national emergency. The Parliament can curtail or repeal a Fundamental right only by a constitutional amendment act Article 33 empowers only the Parliament to restrict or abrogate the fundamental rights of the members of armed forces Choose the code from below 1 and 2 Only 2 only 2 and 3 Only 1 and 3 Only Q.11) Which committee recommended for incorporation of Fundamental Duties into the constitution? Justice Shah committee Sardar Swaran Singh Committee Justice Verma committee Fazal Ali committee Q.12) In the Indian context, consider following statements Both Fundamental Rights and duties are applicable to foreigners Fundamental duties were not part of original constitution. Choose the correct code 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.13) A Constitutional Government is one which Places effective restrictions on individual liberty in the interest of State Authority Places effective restrictions on the Authority of the State in the interest of individual liberty Which of the statements given above is / are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.14) Consider the following To develop Scientific temper and spirit of inquiry and reform To raise the standard of living of people and public health To value and preserve the rich heritage of the country’s composite culture To promote international peace and security and maintain honorable relations with other nations Which of the above fall under the Fundamental Duties? 1, 2 and 3 1 and 3 only 2, 3 and 4 1 Only Q.15) Consider the following pairs Fundamental Rights : USA Directive Principles : Irish constitution Fundamental Duties : Germany Choose the following code: 1 and 2 only 2 only 1 only 1, 2 and 3 Q.16) Which of the following is often described as ‘conscience of the Indian Constitution’? Directive Principles of State Policy Fundamental Rights and Directive Principles of State Policy Preamble Fundamental Rights and Fundamental Duties Q.17) Consider the following statements about Lion-tailed macaques They are classified as protected species under Wildlife Protection Act 1972 It is found in the states of Karnataka, Kerala and Tamil Nadu and Andhra Pradesh It is listed as ‘Critically Endangered’ on The IUCN Red List of Threatened Species Select the correct code: Only 1 1 and 2 1 and 3 2 and 3 Q.18) ‘Goyna Bori’ is A basket that is traditionally used by the people of Kashmir to keep themselves warm by keeping burning charcoals in it The fine art of using lentil paste mix to create exquisite designs It is a pictorial narrative painted on a cloth-based scroll It is an embroidery technique using beautiful designs of flowers on shawls, scarves, saris etc  Q.19) Which of the following statements is/are correct? Coal has the maximum weight in the IIP among the eight core sectors The IIP index is computed and published by the Central Statistical Organization (CSO) on a fortnightly basis considering 2004-05 as base year Select the correct code: Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.20) DRR Dhan 45 also known as IET23832 was in news recently. What is it? Short duration cotton variety WikiLeaks file related to CIA High zinc rice variety Technology for sex identification of meat Q.21) Consider the following statements about Human Papillomavirus (HPVs) Human Papilloma Virus (HPV) vaccine is included in the Universal Immunization Programme (UIP) Some of the HPVs can cause cervical cancer Maharashtra is the first state in the country to launch the Human Papillomavirus (HPV) vaccine as a public health programme for school children Select the correct statements 1 and 2 2 and 3 Only 2 All of the above Q.22) Consider the following statements with respect to National Committee on Trade Facilitation (NCTF) It is in line with the WTO’s Trade Facilitation Agreement (FTA) It is chaired by Chief Economic Adviser It is an inter – ministerial body on trade facilitation Which of the following statements is/are correct? Only 1 1 and 2 1 and 3 2 and 3 Q.23) Vanuatu was in news recently. It is located in Indian Ocean Pacific Ocean Atlantic Ocean Arctic Ocean Download the Solution: Click here P.S- Do participate in the comment box and discuss among yourselves. Your feedback, encouragement, suggestions and appreciation matters :)

IASbaba’s Daily Current Affairs – 28th March, 2017

IASbaba’s Daily Current Affairs – 28th March 2017 Archives NATIONAL/ECONOMY TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting. Banking reforms and NPAs Introduction Banks are the fundamental pillars of the financial infrastructure of the economy. The last decade of growth boom was financed by the banks largely. Post the global recession the stress on banks is increasing and hence has resulted in large NPAs threatening stability. Hence the government has initiated a number of reforms. Issue: The Finance Ministry’s unequivocal communication to 10 state-owned lenders to submit time-bound turnaround plans, or forsake any further capital infusion from the government, is a small yet timely step in the right direction. As the Reserve Bank of India had flagged in its last Financial Stability Report, risks to the banking sector remain worryingly “high”. The continuous deterioration in asset quality, especially at the public sector banks (PSBs), has led to low profitability and substantial value erosion to the principal shareholder — the government. As the RBI’s report pointed out, PSBs saw the proportion of their gross non-performing assets to total advances almost double in the 12 months through September 2016 to 11.8%. That the Ministry has identified 10 of these PSBs to administer a dose of tough love suggests they are the ones most in need of urgent corrective action. It is true that the problem of bad loans has come to such a pass that, “we simply don’t as a society have any excuse or moral liberty to let the banking sector wounds fester and result in amputation of healthier parts of the economy.” This is because commercial lenders have a central role in the economy, by serving to harness public savings and directing the flow of crucial credit to the most productive industrial and infrastructure sectors. When PSBs, with their revolving-door top managements, have little incentive or accountability to redress the burgeoning imbalance in their balance sheets - It is time the largest shareholder delivers an ultimatum: shape up or be prepared to face the consequences. Government’s Approach: That the Centre has chosen to include the employees’ unions in the proposed MoUs it intends to enter into with the lenders is also indicative of the seriousness with which it is approaching the resolution this time around. Staff, who have been a key element in the growth and development of the sector, have a vested interest in the health of PSBs; The risk of continued failure is closure and job losses. To be sure, the Centre has to work simultaneously in close concert with - The banking regulator and the lenders themselves To structure appropriate mechanisms To enable the implementation of the turnaround plans, including resolution of the stressed assets. The PSB managements would need to be empowered so that “haircuts [writedowns on the value of debt] taken by banks under a feasible plan would be required by government ruling as being acceptable by the vigilance authorities.” The stipulation of a three-year time limit for the implementation of the turnaround is also significant as Indian lenders have to meet Basel III capital regulations by March 31, 2019. Conclusion: There is therefore little time to lose, and the government and the banks have their work cut out if India is to avoid the situation of weak banks having little incentive to lend, and economic activity affected for want of credit. Connecting the dots: Elaborate on crisis facing banks w.r.t. stressed assets and NPAs. Discuss the possible policy solution that need to be mandated.   NATIONAL TOPIC: General Studies 3 Issues related to direct and indirect farm subsidies and minimum support prices General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Farm loan waiver is not the solution In news: In UP election, the government formed by the winning party had promised waiving off crop loans. SBI Chairman and RBI Deputy Governor have expressed their reservations against the same as it burdens the banks further and punishes those who repay their loans on time. If the newly elected UP government aims to implement its poll promise of waiving off farmer loans, it will lead to writing off over Rs. 27,400 crore, or a third of the outstanding credit to agriculture in the State of over Rs. 86,000 crore, according to SBI assessment. The newly elected Punjab government is also reportedly seeking assistance for a loan waiver for farmers in the state. Even Maharashtra government is under the pressure to take such actions. Similar action was taken by previous government in 2008 and it cannot be evidently said that it worked in favour of small and marginal farmers. Later, even the CAG expressed reservations about such policy decisions. To tread this path now, confusion will once again surround the owners, lessees and cultivators. Also, with such farm loan waivers attracting the electorate, it is highly morally punishable for those who repay their loans. Thus, farm loan waivers are not the right way of addressing the problems in Indian agriculture. Helping the agriculture? The agriculture contributes about 15% to India’s GDP, yet a majority of the population directly or indirectly depends on the sector for livelihood. Farmers are a sizeable and powerful vote base and politically would make sense in short run—but as experience shows, it is unlikely to help the agriculture sector in the long run. Loan waivers have several adverse consequences: Loan waiver affect credit discipline and disrupt the credit market. Evidence from the 2008 farm loan waiver shows that bank lending moved away from districts with greater exposure to the loan waiver. Such outcomes can affect agricultural output in the medium to long run as banks may get more selective in extending credit. It was said that farmers were not able to invest because of debt overhang. However, a by World Bank did not find any improvement in investment consumption or positive labour market outcomes in areas where debt relief led to a significant reduction of household debt. Another study by Harvard Business School in 2008 showed that agricultural credit extended by government-owned banks goes up in an election year, while defaults also increase during election This again highlights that political intervention distorts the credit market. Huge fiscal cost- The 2008 farm loan waiver, which benefited about 37 million farmers, resulted in a cost of over Rs. 52,000 crore to the exchequer. Similar will be the case if implemented this time too. On the contrary, expenditure on loan waivers will eventually leave less fiscal space for public expenditure in agriculture. Steps that can be taken It should be noted that, credit restructuring is done to industries too on the outstanding amount, often away from public glare. Similarly, an attempt can be made to restructure bad farm loans (particularly in regions where farmers’ suicides have taken place), before writing it off. However, in the medium term, crop insurance should emerge as the main vehicle to cope with rural distress. The sudden stress on waivers, which runs contrary to the Pradhan Mantri Fasal Bima Yojana, points to an unwillingness to confront the real issues in agriculture. Union FM has categorically said that Centre will not foot the bill in the case of loan waivers. Hence it is best that centre and states stay away from this course. Instead of focussing on ramping up agricultural credit, efforts should be made to improve the institutions in this regard. This includes: Strengthening rural credit cooperatives Making rural credit cooperatives more publicly managed rather than government-controlled SHGs could act as source of credit, but should not be burdened with onerous credit targets, as in the past Jan Dhan accounts can arrest the trend towards informalisation of credit, provided the emerging banking systems and technologies work to the advantage of the farmers. India needs massive investment in areas such as irrigation, water conservation, better storage facilities, market connectivity and agricultural research. Conclusion Agriculture needs better technologies to improve yields and combat the vagaries of rainfall and temperature, and better prices for its produce. The problems in Indian agriculture are structural. They need long-term solutions. Loan waivers will only end up complicating the problem. Loan waiver is a self-fulfilling cycle with long-term consequences—defaults would warrant loan waivers, and waivers will lead to more defaults. The Indian economy has suffered a lot due to competitive populism in the past. It’s time parties and governments addressed the real issues. Connecting the dots: Are farm loan waivers a suitable option to improve agricultural performance in economic and social sphere of lives? Critically examine. 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