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IASbaba’s Daily Current Affairs – 20th January, 2017

IASbaba’s Daily Current Affairs – 20th January 2017 Archives EDUCATION TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Problems and Reforms in Higher Education Introduction Access, Equity, and Quality are the three benchmarks to judge any education system. As per reports and recent trends, India has not been up to the mark in all the three areas. As a result the education system in India has been in a poor condition and needs urgent and comprehensive reforms. Problems of Higher Education in India Access related challenges The socio economic condition of our country and its people leads to high rate of drop out. This leads to low gross enrolment ratio in higher education. The affordability of education, quality of schools and social issues such as early marriage force the children to opt out of education. Those who do go for complete higher education are later discouraged due to social discrimination faced at work as compared to the other well off sections of the society. Admission related challenges Students who are seeking admission into higher education institutions have to go through an admission test. Even these students face challenge in terms of fees that they have to pay to the coaching institutions which help in preparation of the entrance exams. Financial limitations and economic occupations are a major reason for students not taking up higher education. Quality Concerns No doubt the number of universities and colleges has grown manifold in the last 60 years of independent India but still the quantity and quality have not progressed in the same direction. Various shortfalls in term of quality are as follows: Shortage of good quality faculty leading to high number of vacancies and recruitment of under qualified teachers. Stark deficiencies of library books, laboratory facilities, computer and broadband internet. Infrastructural deficiencies in terms of buildings, classrooms, sports and extracurricular facilities. Affordability Issues Two-thirds of enrolment in higher education is in private institutions which charge very high capitation fees and work on a profit motive. Fees at such institutions are more than double of government institutions. This makes education highly unaffordable. Southern India has also seen a recent trend wherein higher education is now turning into a business and the colleges and universities are run as commercial enterprises. Curriculum related challenges On account of curriculum the education system has to face the following challenges: Emphasis on rote-learning. Outdated curriculum. Exam oriented learning and lack of practical education. Graduates lack basic language and cognitive skills. O Only 20% graduates from engineering colleges in India are employable in IT companies. Other Issues Quality of post-graduate research is much below the global standards. Poor performance of India institutions in the global university rankings. Absence of regular institution quality and faculty reviews. Corruption and nepotism in appointments of faculty and their promotions. Suggested Reforms and Strategy Promotion of Vocational Education Universal access at minimal tuition fees should be given to the students with equivalent focus on vocational education as well. Institutes for vocational education should be established all across the state with option of evening classes as well. This will allow access to learning to those who are engaged in economic activities. Credits on a regular basis should be allocated to judge the performance of the students. Public Private Partnership model should be used to finance these institutes. Private sector should also be given priority access to the students for recruitment in their organisations. Reforms in Regular Education The students who do not wish to pursue vocational education can opt for general science and humanities subjects. The performance of these students should also be monitored on the basis of credits and tests. Improvement in Access and Quality Professional schools should be established for subjects like Law, Business, Engineering and Medical. In these cases where the tuition fees are high, large number of options for student loans should be available at friendly terms. Public universities for specialized branches of science and humanities should be opened in limited number. The limited number will promote quality as both financial resources and faculty will be used in a more efficient and effective manner. Very selective research universities should be opened with scholarships for students and no tuition fee. Departments and institutes should be reorganized in a manner which focuses on multi-disciplinary research. Faculty Related Reforms These reforms are one of the most important reforms for addressing the challenges faced by higher education in India. Faculty selection and promotion should be entirely the responsibility of the faculty in consultation with various relevant stakeholders. The most important criterion for judging faculty will be teaching quality and the quality of research undertaken by the faculty. New appointments should be done on basis of presentation of research paper in open seminars where the faculty can be questioned by the public as well. Regular mid-term appraisals should be carried out by both internal and external review committees. Promotion should be totally based on performance and not on seniority. Flexible salary structures should be there to reward exemplary performances. Other Reforms Distance learning should be fully utilized. India should also promote the usage of international Massive Open Online Courses (MOOCs) system. Higher academic institutions need to be in sync with the needs and occurrences of the society and the economy. Connection between the ongoing research in universities and the innovations in the local industrial and commercial economy should be very strong. No involvement of politicians, administrators or regulatory bodies such as UGC in personnel selection. Periodic audits should be carried out to ensure that the budget assigned has been used in an efficient manner. Conclusion Just like every coin has two sides, there is a negative side to each suggested reform strategy as well which has to be balanced as well. As and when the above reforms are carried out, it has to be ensured that non-interference and autonomy does not let universities to degrade in terms of quality and promote an atmosphere of nepotism and mediocrity.  To address this problem competition should be promoted among universities at all times.  As a result of the competition the institutions will always be cautious of losing quality faculty and students. Also, caste reservations alone cannot address the concerns of the disadvantaged sections. It is essential to ensure employability of the graduates. This will, in the long run, bring more satisfaction and benefit to the needy sections of the society. Along with the reforms, these precautionary measures will promote equity and access to education. Connecting the dots India needs to address three pillars of equity, access and affordability in higher education. Highlight how the educations system of India has failed in these aspects and a reform strategy for the same.   NATIONAL TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes Important International institutions, agencies and fora, their structure, mandate. General Studies 1 Social empowerment   Zero tolerance towards child exploitation In news: After almost two decades, Government of India decided to ratify International Labour Organisation’s two conventions which protects child against child labour. International Labour Organisation It was created as part of the Treaty of Versailles that ended World War I, to reflect the belief that universal and lasting peace can be accomplished only if it is based on social justice. The driving forces for ILO's creation arose from security, humanitarian, political and economic considerations. ILO, the only tripartite U.N. agency, brings together governments, employers and workers representatives of 187 member States Mandate: to set labour standards, develop policies and devise programmes promoting decent work for all women and men. Conventions of ILO- International labour standards are legal instruments drawn up by the ILO's constituents (governments, employers and workers). They are either: Conventions - legally binding international treaties that may be ratified by member states or Recommendations - serve as non-binding guidelines The ILO's Governing Body has identified eight conventions considered as fundamental principles and rights at work Freedom of Association and Protection of the Right to Organise Convention Right to Organise and Collective Bargaining Convention Forced Labour Convention Abolition of Forced Labour Convention Minimum Age Convention Worst Forms of Child Labour Convention Equal Remuneration Convention Discrimination (Employment and Occupation) Convention India decides to ratify two important conventions Convention 182- On worst forms of child labour This calls for need to formulate legislation for prohibition and elimination of the worst forms of child labour. Adopted by ILO in 1999 Convention 138- On minimum Age Employment Minimum age for employment should not be less than the age of completion of compulsory schooling (14 years of age in India's case). Adopted by ILO in 1973 They are two of the eight core labour conventions Child exploitation in India Child Labour is the practice of having children engage in economic activity, on a part- or full-time basis. The practice deprives children of their childhood and is harmful to their physical and mental development. Around 9.8 million children are officially out of school and from those 4.3 million children are part of labour activities. Child labour has propelled vicious cycle of illiteracy and poverty. It is also the basis of organised crimes such as human trafficking, terror and drug mafia. Challenges faced and changes made: Main bottleneck in ratifying conventions 182 and 138 was addressing forced or compulsory recruitment of children and raising age of employment in hazardous occupations from 14 to 18 years. However, when GoI passed Child Labour (Prohibition and Regulation) Amendment Bill, 2016 prohibiting the employment of children up to 14 years of age, and children up to 18 years of age in hazardous occupations, it was imperative to ratify convention 182 and 138. Understanding the essence The decision to ratify the convention and passing of child labour bill makes India’s intent clear of not tolerating the exploitation of children any longer. The government will now take immediate and effective measures to prohibit and eliminate the worst forms of child labour: Child slavery (including the sale and trafficking of children, debt bondage, and forced recruitment for armed conflict) Child prostitution and their use in pornography Use of children for illicit activities such as drug trafficking Exposure of children to any hazardous work which is likely to harm their health, safety or morals. Under the provisions of Convention 182 and 138, there is no fixed deadline by which India has to eliminate worst forms of child labour. Will child labour be finally eliminated? There have been concerns raised by many regarding the kind of ‘amendment’ made in CLPRA Act, 1986. There seems to be still lack of national commitment in abolishing all forms of child labour as the amendment in the law provides for employment of children under 14 years in ‘family enterprise’. Though the condition of working is only outside ‘school hours’, it is bound to affect child’s health as well as learning aptitude as the child will be forced to work and earn income. A new category of adolescents (14-18 years) has been created who can be employed in ‘non-hazardous’ occupations. Thus, the child has to work anyways and contribute economically to the family without focussing solely on his education and development. The amendments made merely to comply with international conventions is not the way forward. There has to be complete elimination of child labour as children from poor and marginalised sections, especially Dalits, are still in danger of being deprived of both the joys of childhood and their constitutional right to education. Conclusion This is a leap of India and its children to a much better society as this decision will have path-breaking impact on the lives of those who are forced to remain on the margins and are subject to exploitative conditions. These laws and conventions should assist the implementing institutions in eliminating all forms child labour. However, ending child labour requires language of compassion and humanity that would help accelerate the global movement against childhood exploitation. Increased moral courage, public concern, social empathy, political will and the implementation of resources invested in the development and protection of children are inevitable to eliminate child labour. Thus, to achieve great reforms, the government, people and other stakeholders have to move in one direction with sincere efforts and dedication to change the prevailing circumstances. It is crucial to engrain in mind that investment in children is an investment in future. Connecting the dots: India recently decided to ratify Convention 182 and 138. Explain the previously mentioned convention wrt to importance for India in ratifying the same. After nearly two decades, India decides to ratify tow important ILO conventions. Which are they? Why there was such a delay and what are consequences of the ratification. Related article: A law against children? MUST READ Rebooting disinvestment Hindu   The Trump discontinuity Indian Express   Jallikattu questions Indian Express   Startup India’s flaws are beginning to tell Livemint   Making cities safer with public transport Livemint   The selective memory of nations Livemint   The politics of Budget + Poll Business Line   Why do stents cost so much? Business Line MINDMAPS Financial Climate Resilience

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 103]

IASbaba Daily Current Affairs Quiz [Day 103] Click here to get all the Tests– Archives Q.1) The Taxation Laws (Second Amendment) Act, 2016 came into force on 15th on December. Consider the following statements It amends the Income Tax Act, 1961 and Finance Act, 2016 Pradhan Mantri Garib Kalyan Yojana (PMGKY) is a part of this amendment Declarant of undisclosed income needs to pay 30% tax, 10% penalty and 33% Pradhan Mantri Garib Kalyan Cess on the tax Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.2) Consider the following statements about The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) It was launched to make available collateral-free credit to the micro and small enterprise sector Only the new enterprises are eligible to be covered under the scheme The Ministry of Micro, Small and Medium Enterprises, and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises Which of the following statements is/are correct? 1 and 2 1 and 3 2 and 3 All of the above Q.3) Which of the following countries is/are members of East African Community (EAC)? Burundi Rwanda Senegal Angola Uganda Select the correct code: 1, 2 and 5 1, 3, 4 and 5 1, 3 and 5 1, 2 and 4 Q.4) Agenda 2063 is concerned with Sustainable Development Goals African Union World Fare Trade Organization None of the above Q.5) Recently President Pranab Mukherjee unveiled the Wanderer Car used by _________________ during his ‘Great Escape’ from Kolkata to the Gomoh railway station between January 16 and 18, 1941. Select the correct code. Vikram Sarabhai R.D Tata Ghanshyam Das Birla None of the above Download the Solution- Click here All the best IASbaba

IASbaba’s Daily Current Affairs – 19th January, 2017

IASbaba’s Daily Current Affairs – 19th January 2017 Archives NATIONAL TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes Focussing on marginal farmers A rising concern According to the National Crime Records Bureau (NCRB), 2,195 marginal farmers and 3,618 small farmers reportedly committed suicide in 2015. Curiously, a larger number of small farmers rather than marginal farmers reportedly committed suicide in States like Maharashtra, Telangana and Karnataka. This shows that even small farmers are not spared by the agricultural crisis, and it is not observed only in traditional drought stricken states. Small farmer= Has or cultivating agricultural land between 1 to 2 hectares. Marginal farmer= Has or cultivating agricultural land upto 1 hectare (2.5 acres) Where does the major concern lie? Farmer suicides have largely been attributed to debt, drought, crop failure or poor returns. However, farmers have been taking the drastic step regardless of a good rainfall year or bad, a good price year or a disappointing one. This is because they have low incomes but high costs of cultivation which is financed through loans. Somehow they manage to breakeven in a year and pay off their debts, a weather shock or price fluctuation will push them into yet another cycle of borrowing. Hence, there comes a time when they are unable to cope with mounting debt and the inability to take care of their families, they go for the extreme step. Agriculture became unviable when input costs associated with fertilizers, crop-protection chemicals and seeds rose, along with fixed costs associated with agricultural equipment such as tractors and submersible pumps. Prices of many raw materials like fertilizers have jumped which raises the ultimate prices of crop too. Hiring of agricultural labourer has become expensive with labour cost shooting upto Rs. 20/hour compared to Rs. 6-9/ hour previously. Hiring of animals for agricultural mechanics is also rising. Even the cost of labour, associated with both animal and machine labour, has also undergone a substantial jump. Thus, rise in input costs have risen the cultivation costs. It is evident from the fact that total cost of cultivation for wheat rose three times from 2004-05 to 2012-13. Traditionally, the blame for farmer suicides is cast upon local moneylender. But NCRB data highlights that 2,474 of the 3,000 farmers who were reported to have committed suicide in 2015 had loans from local banks. Whereas, only 9.8% of farmers had taken loans from moneylenders. Thus, formal indebtedness have cost more life than traditional moneylenders which seem to be more flexible than local banks. An inclusive approach is the solution Integrated pest management The indiscriminate and unilateral use of pesticides was the only plant protection tool during sixties and seventies for sustaining of agricultural production potential of the high yielding varieties under the intensive cropping systems. This has led to several ill-effects like human and animal health hazards, ecological imbalance, development of resistance in the pests to pesticides, pests resurgence and environmental pollution, destruction of natural enemies (bio-control agents) of pests and increased level of pesticides residues in soil, water, food with the increased use of pesticides. Hence, IPM was needed as it is an eco-friendly approach which aims at keeping pest population at below economic threshold levels by employing all available alternate pest control methods and techniques. The farm policies should encourage integrated pest management with focus on combining biological, chemical, mechanical and physical means to combat pests with a long-term emphasis on eliminating or reducing use of pesticides. The use of chemical pesticides is advised as a measure of last resort when pest population in the crop crosses economic threshold levels. Support local fertiliser industry The timely delivery of subsidies would improve working capital requirements, enabling industries to manage costs through internal sources rather than external loans. Delayed payments can cause loss of interest of Rs. 3,500 crore for fertilizer firms annually. Also, the state seed policies should focus on encouraging contract farming, along with identification of new genotypes for treating pest and disease syndromes, as well as adverse weather conditions. Improved farming technologies The farm equipment policy needs a revamp with a focus on manufacturing farming equipment and implements that are currently imported. Precision-farming techniques like Systematic Rice Intensification can help increase seed production. Subsidies should be timely given to farmers seeking to buy equipment so that they have lower collateral requirements, longer moratoriums and payback periods. Even the entrepreneurs who seek to set up Custom Hiring Centres (CHC) for agricultural equipment should be given subsidies on timely basis. CHCs will encourage farm mechanisation through upgradation of technology for raising agriculture and horticulture crops. It will give farm machinery on rental basis to farmers who cannot afford to purchase high-end agricultural machinery and equipment apart from servicing old machinery. The centres will play a pivotal role in introducing high technology agriculture machinery to even ordinary farmers with the objective to boost crop production and improve quality of agriculture operations. Burden-less institutional financing It has to be ensured that institutional finance is available and accessible. The benefits of such finance should be simplified and disbursed funds should be effectively monitored. States should seek to establish early warning signals, monitoring farmers who go past set limits and seek unsustainable loans. Village-wise lists of deeply indebted farmers should be prepared annually to identify farmers who are becoming extremely poor and may be potentially driven to committing suicide. Then, National Bank for Agriculture and Rural Development, along with the local administration, should be tasked with analysing such lists for macro and local policy interventions, and devise timely loan restructuring initiatives, insurance claim settlements and better counselling to prevent farmers from losing their lives. Responding to vagaries of nature, insurance coverage should be expanded to all crops while reducing the rate of interest to nominal levels, with government support and an expanded Rural Insurance Development Fund. Right to dignity Farmers should be also looked from eye of humanity and treated with dignity and respect. Agriculture is facing tough times currently and thus farmers are struggling to survive, make a living, sustain families and educate children by being associated in agricultural sector. Conclusion Systematic changes are required to make agriculture a sustainable and stick-to-employment sector. Indian agriculture is still rainfed which has increased the chances of becoming vulnerable to climate changes. Small and marginal farmers should be encouraged to use new farming techniques like rainwater harvesting, watershed management, micro-irrigation by providing them financial support to create and maintain such agricultural infrastructure. Adequate crop insurance will motivate them to carryout their agricultural practices without huge concerns. Farmers should be educated about new techniques and schemes through KVKs, interaction with scientists and various mediums of communication. Thus, an integrated farm management approach should be undertaken to support the marginal and small farmers who require more support to sustain their livelihood and prevent them from taking their lives. Connecting the dots: Indian farmers have long been susceptible to political, economic and climatic conditions of the country, which has resulted into their loss of lives. Determine how the farmers, especially small and marginal, can be made to move away from path of suicide? MUST READ To levy a service charge, or not to Indian Express   Concede to win Indian Express   Government should stick to fiscal targets Livemint   How e-payments can prevent cartelization Livemint   Making Indians shift to cashless transactions Livemint   CITU is wrong Business Line   Attracting FDI: hype and the reality Business Line   Gearing up for GAAR Business Line MINDMAPS RBI’s Autonomy  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 102]

IASbaba Daily Current Affairs Quiz [Day 102] Click here to get all the Tests– Archives Q.1) Consider the following statements about asteroids Psyche 16 is the largest S-type asteroid S-type asteroids are the most common variety, forming around 75% of known asteroids Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) ‘Raisina Dialogue’ is organised by Ministry of External Affairs Observer Research Foundation Both (a) and (b) None of the above  Q.3)  Consider the following statements about Hybrid Cloud It is a cloud computing environment which uses a mix of on-premises, private cloud and third-party, public cloud services with orchestration between the two platforms. It gives businesses greater flexibility and more data deployment options. It can be used for big data processing Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above Q.4) ‘Mission 41K’ and ‘Mission Raftaar’ is concerned with Ministry of Road Transport and Highways Ministry of Power Ministry of Railways Both (a) and (c)  Q.5) ‘Einstein’s Enigma or Black Holes in My Bubble Bath’ is written by V. Vishveshwara Ramanujan V. Raman N. Bose Download the Solution- Click here All the best IASbaba

IASbaba’s Daily Current Affairs – 18th January, 2017

IASbaba’s Daily Current Affairs – 18th January 2017 Archives URBANISATION TOPIC: General Studies 1 Urbanization, their problems and their remedies Municipal waste management- Waste to energy plants To manage solid waste or garbage in cities, there are three steps to it Segregation of biodegradable or wet waste from dry waste at source. Once segregation is achieved, municipal governments can use wet waste to produce compost and biogas in biomethanation plants. The dry waste, after removing recyclable elements, should go to waste-to-energy plants. These steps will reduce the volume of waste that remains to be sent to landfills. Waste to energy plants From the municipal waste, it is possible to generate energy in form of electricity and/or heat from the primary treatment of waste. It is done through Waste-to-energy process. A number of waste-to-energy plants are coming up in urban India which use incineration, Refuse Derived Fuel (RDF)-based combustion or conversion technologies such as pyrolysis and gasification. Incineration A waste to energy plant based on incineration of unsegregated municipal solid waste in Delhi processes almost 2,000 tonnes of unsegregated municipal solid waste every day to feed into its boilers to produce 16 MW of electricity. These plants rely on mass burning of municipal solid waste, which involves complete combustion of miscellaneous waste materials into ash. However it is a huge challenge to determine what is municipal solid waste. The gases produced from such combustion may contain dioxins and furans, which are toxic and can be lethal. Thus, these plants need to have emission control filters of a very high standard to check the release of harmful gases into the atmosphere. It even came under fire initially as it did not comply with emission requirements but now it has received clearance from NGT. Another waste to energy plant in Delhi based on controlled combustion, produces RDF from segregated dry waste. RDF is fuel produced from various types of wastes such as Municipal Solid wastes (MSW), industrial wastes or commercial wastes. RDF consists largely of combustible components of such wastes, as non recyclable plastics, paper cardboard, Labels and other corrugated materials. This RDF is used in the same onsite boilers to generate electricity, performing at EU standards of emissions. The plant receives 1,300 tonnes of mixed waste every day which is reduced to about 40% of the total after segregation and then produces 12 MW of electricity. This technology is used efficiently in Singapore, Japan and many European countries with due precaution as they try to minimise the waste that needs to go to landfills. The purpose of a landfill is to isolate waste from its surrounding environment, preventing water contamination and contact with air. However, landfills are not built to decompose trash. As a result, there is contamination of the soil and water with toxins, causing leachate and the release of greenhouse gases. Pyrolysis, gasification and plasma gasification Pyrolysis: produces combustible tar/biooil and chars Gasification: produces combustible gas, hydrogen, synthetic fuels Plasma gasification process: produces rich syngas including hydrogen and carbon monoxide usable for fuel cells or generating electricity These are thermal technologies that are able to produce energy from waste and other fuels without direct combustion. In waste to energy plants, these technologies can deliver cleaner emissions but are considerably more expensive. It involves heating of solid waste at very high temperatures in an oxygen-controlled environment in a manner that the thermal reactions produce synthesis gas (or syngas). It has the advantage that it can be burned directly or transported through pipelines and/or tankers for use in electricity generation, refining, chemical and fertiliser industries. While syngas can be scrubbed and converted into a clean energy source, the technologies are expensive, compromising the commercial viability of plants based on conversion technologies. One such waste to energy plant based on pyrolysis-gasification technology was set up in Pune in 2012, but it has failed to deliver after repeated trials. It failed due to high cost of cleaning syngas and also because of a number of technical snags, including the fact that it had overestimated the calorific value of the waste and underestimated the moisture content. The company now produces RDF using 300 tonnes of dry municipal waste per day — less than half of what was intended in the design of the original plant. Financial Viability The subsidies required to make waste to energy plants functional is a different challenge. These plants involve significant capital investment and the cost of energy produced is higher than from the grid. So, the subsidies can be provided only by the government. This is a beneficial investment as they contribute significantly in resource recovery and saving on the energy cost of transportation. Without them, there is diversion towards landfill which is more harmful abd non-productive. Hence, there should be a transparent method to determine the maximum subsidy feasible through competitive bidding. Also, PPP model can be implemented here where both government and private sector cooperate to keep the cities clean and sanitised. Role of state The pollution control boards set up by central and state government were expected to provide technical assistance and keep a check on the emissions/environmental footprints of waste-to-energy plants. However, they did not keep pace with rapidly evolving technology in the field of pollution control and were not able to check routine defaulters. As a result, it was recognised that a more empowered body was needed that could enforce adherence to environmental regulations. This led to formation of National Green Tribunal in 2010 as an independent judicial body by an Act of Parliament of India. As a judicial body in charge of supervisory jurisdiction over all environmental matters, NGT has poked the pollution control authorities and catalysed action from State Pollution Control Boards/Municipalities, especially in waste management. NGT has been setting the rules and backing them up with legal compensation and enforcement behind its rulings. Now it needs support from CPCB to carry out scientific evaluations of the environmental impact of waste-to-energy plants. Conclusion All these plants are involved in process of generating electricity. However, it needs to be understood that electricity generation from waste is not the most efficient way of generating electricity. Rather, it is a way of resource recovery from municipal solid waste and should be considered as a by-product of waste management. Though it is not a solution to India’s energy problem, but if implemented at global emission standards, it could be a pathway to scientific and sustainable disposal of municipal solid waste, as there is scarcity of urban land in India and also helps in generating some much needed electricity. Additionally, this can contribute in keeping environment clean and thereby contributing towards less greenhouse gas emissions as combustion technologies produce less GHG gases than landfills. Connecting the dots: What is municipal waste management? Is it possible to generate energy out of waste? Examine. MUST READ Voting in a season of discontent Hindu   Don’t let messengers shoot themselves Hindu   The real meaning of independence for RBI Hindu   The new right Indian Express   Permission To Prosecute Indian Express   Tough times ahead for India in Afghanistan Livemint   Cyber war has gone public, and that’s bad Livemint   Violence against women hurts the economy Livemint   Rare diseases; orphan drugs Livemint   Baby steps to GST Business Line   India’s Pak policy must shift focus Business Line MINDMAPS Digitised Healthcare

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 101]

IASbaba Daily Current Affairs Quiz [Day 101] Click here to get all the Tests– Archives Q.1) Recently, a mobile app 'SEZ India' which provides detailed information related to special economic zones was launched. Consider the following statements The app was launched under the Commerce ministry’s e-Governance initiatives It has four sections – SEZ Information, SEZ Online Transaction, Trade Information and Contact details Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2  Q.2) Recently Falcon 9 rocket blasted off from California and placed a constellation of satellites in orbit. It is developed by Space X Mishaal Aerospace Virgin Galactic PLD Space  Q.3) Consider the following statements about Transports Internationaux Routiers (TIR) It is the only global customs transit system that provides easy and smooth movement of goods across borders in sealed compartments or containers under customs control from the customs office of departure to the customs office of destination All members of INSTC are signatories to TIR Convention 1975 The conventions were adopted under the auspices of the United Nations Economic Commission for Europe (UNECE) Which of the following statements is/are correct? 1 and 2 1 and 3 2 and 3 All of the above Q.4) Which of the following statements about National Backward Classes Finance & Development Corporation (NBCFDC) is/are correct? It is under the aegis of Ministry of Social Justice and Empowerment It provides financial assistance through State Channelizing Agencies (SCAs) nominated by the State Governments/ UTs The Loan & Employee Information Automation Project (LEAP) system would be used by the National Backward Classes Finance & Development Corporation (NBCFDC) to disburse loans electronically All of the above Q.5) Consider the following statements about National Alliance against online Child sexual abuse and exploitation It was set up by the Ministry of Women & Child Development It aims to develop a comprehensive outreach system to engage parents, schools, communities, NGO partners and local governments (PRIs and ULBs) as well as police and lawyers to ensure better implementation of the legal framework, policies, national strategies and standards in relation to child protection and child rights It will set up a multi-member secretariat based in MWCD with a portal inclusive of a hotline for reporting and strengthening existing service delivery systems Which of the following statements is/are correct? 1 and 2 1 and 3 1, 2 and 3 Only 2 Download the Solution- Click here All the best IASbaba

RSTV Video

The Big Picture - Indian Economy in 2016: Problems & Prospects

Indian Economy in 2016: Problems & Prospects Archives TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. India’s current economic position India’s GDP growth rate of 7.6% in 2015-16 is powered by rebounding in farm output and improvement in electricity generation in fourth quarter of fiscal. The growth numbers came back on strong 7.9% growth in the last quarter of 2015-16. But, the following quarter, the GDP advanced 7.1% and missed market expectations of 7.6% growth. It was the lowest reading since the quarter of 2014. In second quarter of present fiscal 2016-17, the growth was 7.3%, better than previous quarter but missing market expectations of 7.5%. Recently, the data on first two quarters have been released by CSO which predicted the GDP to grow at 7.1% in 2016-17. Performance in the beginning Q1 of 2016-17 saw robust growth of 7.9% which surpassed expectations. Though private investments weren’t upto mark and public investments also did not keep up its growth, the pickup in electricity and private consumption contributed to the first quarter growth. However, things started declining after it. The global slowdown contributed to declining growth rate as the oil prices were on the rise again with OPEC cutting its production. There was also influence of right wing ideology all over the world which started with BREXIT, then election of Trump as US President and now new President Candidate of France- Marine Le Pen. This made economies more inward looking rather than support global economy which had some effect on Indian economy. Currently, switching from a cash economy to a digital economy will also take its toll. These factors have tightened the economy a bit which may not help in increasing in GDP in immediate future. The rise and fall From 7.9% in Q1, Indian economy fell to 7.1% in Q2. Thereafter also, India’s growth remained constant with being above 7% mark only. Thus, India has indeed been a bright spot in lustreless global economy. Agriculture did very well in Q1 of 2016-17 with record 5.5-5.6% growth. This contributed significantly to positive growth. It was the domestic demand which had kept up a whole lot of constituents of GDP- whether industrial or services. But there was slowdown in all of it. Between April and September, the IIP (index of industrial production and manufacturing) has shrunk and has seen lowest growth rate of -0.1% compared to 17.8% of 2006-07. This shows the major issue of lack of aggregate demand. The demand not being there, no investments are taking place and there is now surplus capacity. This is the first time in recent time, the GDP growth is above 7% but the fixed capital formation is consistently declining. The gross fixed capital formation has fallen from 32% to 29%. This is bound to have effect on GDP. Thus, economy is running on only one engine of consumption demand. This doesn’t sustain the economy and hence there has to be reliance on investment demand too. The services sector which is as dependent upon industrial growth as it is on overseas exports- particularly IT services, there have been difficulties in increasing the exports. The new US president has said that H1B visas would not get preference over American workers is another area where IT is concerned. The services PMI (Purchasing Manager’s Index) is below 50 (at 46) which means India is on a negative territory. It is not good for economy as India’s services sector makes up over 60% of GDP. Nonetheless, it saw a decent growth because of pay out by the seventh pay commission. There is a major hiccup of credit growth, which has been just 8.5%. In this, the retail loans have taken up and not the industrial loans. Further breaking up, the MSMEs are not growing at all and SMEs sector is in negative territory. So there is lack of confidence that is prevailing amongst businessmen in country. How to increase demand Irrespective to what MPC recommended to RBI for its last policy review, there has to be measures to address consumption + investment + government expenditure. The demand for investment goods will build up if the RBI redresses the rate of interest issue (repo and reverse repo rate). If the interest is lower, there can be incentive for undertaking investments. When it comes to demand for automobile, FMCG products and non-consumer durable, the way forward is to have a good rabi crop and continued expenditure on social security schemes like MGNREGA, health mission, rural missions etc. The demand of MGNREGA will increase as industrial and formal sector has slowed down. This will induce consumer demand of the products. There will be some increase in GDP as tax collections and subsidy reductions will be good wrt to previous years. Therefore, there will be increased divergence in GVA and GDP because GDP is calculated after including the tax collections and excluding subsidies. The government role in next 4-5 months is most crucial to lift the sentiment and the economy. The government’s investment capacity is very limited as it has rolled out Rs. 70,000 crore extra money of which 55000 crore already invested. Hence, only very little part of it remains to spend in rest of the year. Even the private investment capacity is anaemic right now because of huge NPAs with banks. The government now, irrespective of its fiscal position, has to increase the expenditure on roads, ports, electricity, railways as they can drive the economy much faster. Thus, if the investment issue wants to be tackled, the government has to focus away from demonetisation and GST. The real estate sector must be assisted by government. The forward and backward linkages of real estate are huge. The land has to be made available with new technology being assisted with it. Digitisation of land records, being transparent. This will revive real estate sector. One way would be to make housing loans much cheaper. Conclusion No doubt, the demonetisation will bring down economic growth as India has been primarily a cash economy and transfer to digital economy is going to take time especially when financial intrusion does not exist in hinterland.  Government should go for remonetisation as fast as possible. Without money, the demand is getting killed and demand disruption costs economic growth very dearly. This time the government should come out with pro investment budget. The data is expected to be revised once the budget is laid out 1st February and next monetary policy on 7th February. So if RBI is sufficiently enthused by pro investment budget and the government led investment demand picks up, then there might be chances of considering the interest rates revision which will propel credit demand. Connecting the dots: Demonetisation will have a deep impact on Indian economy. Comment.

IASbaba’s Daily Current Affairs – 17th January, 2017

IASbaba’s Daily Current Affairs – 17th January 2017 Archives CLIMATE CHANGE AND ENVIRONMENT TOPIC: General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment Climate Change – Impact and Innovations Introduction Climate change is a phenomenon which is often related to natural disasters such as heat wave, floods and cyclones. However, other than these disasters, climate change is bound to have many other effects as well. These effects might lead to a crisis which will have many more ill consequences in the long run. Occurrences due to Changing Climate Over the past few years various natural changes that have been witnessed due to climate change are: Rising sea levels, Changing weather patterns, Rising temperatures across the globe, and Decreasing water resources Impact of Climate Change Changes in urban and rural landscapes in the long term are expected due to rising sea levels, changing weather patterns and decreasing water resources. The World Bank has predicted an impact on multiple sectors of the economy such as food, energy and water due to rising temperatures. Extreme heat due to changing temperatures and changing rainfall pattern has been witnessed in India over the years. The agricultural sector is expected to suffer a lot due to these issues. Sea level rise is also expected to impact coastal ecosystems and degrade the quality of groundwater. ECONOMIC IMPACT Climate change is not only going to impact the environment or the society but will have a deep impact on the economy also. Even if rise in temperature is controlled within the target of 2°C, still India will have to import double the food grains as it used to do in the times when no climate change and its impact was visible. The problem of climate change has an impact on the GDP also. It would cost the world 1-2 per cent of the global GDP a year to reduce greenhouse emissions. Further if this problem is totally ignored, it would cost 5-20 per cent of the global GDP. Strategy for Climate Change For tackling climate change in the long run, there is a need to reduce the greenhouse gas emissions from various sectors of the economy in a comprehensive manner and move to a low-carbon economy. Innovative financing opportunities and strategies should be adopted by existing and new businesses. Achieving the targets under India’s Nationally Determined Contributions (NDCs) will need new kinds of financial innovations to mobilise trillions of funds meet those targets. Green Bonds are the latest form of investment innovation for funding climate mitigation strategies. YES Bank issued India’s first green infrastructure bonds. Financial instruments such as Blue Bonds have been conceptualised for water, agriculture and related infrastructure. These financial instruments need to be given a push through adequate mechanisms such as credit guarantees. This will make them customer friendly and also assist in reaching huge numbers. Blending of resources can also help in creating a requisite impact and scale essential for combating climate change. This can be done through public private partnerships. Traditional irrigation methods and instruments, like bawdis and tankas used for water conservation have to be used along with modern irrigation techniques like drip and sprinklers that use less water for irrigation. Indian Initiatives India has set steep target of achieving a renewable energy installed capacity of 175 GW by 2022. India’s energy goals have received a lot of support from developers and financiers. Various initiatives undertaken in India are: Partial Risk Guarantee Fund for Energy Efficiency and Partial Risk Sharing Facility which aims to boost support for promotion of this concept in the industry through the Energy Services Companies model. India’s target of carbon sink under the INDCs will be supported by National Green Highways Mission under which the corporates are encouraged to adopt highways and work towards their greenery. Other than the Green Bonds, YES Bank also became the first private institution to commit CSR funds towards creation of carbon sink. Schemes and targets like these give the private and public sector major opportunity to collaborate and finance climate mitigation. Connecting the dots: What is Climate Change? Discuss the socio-economic impact of climate change and also suggest innovative strategies for India to adopt for climate mitigation and adaptation.   SECURITY TOPIC: General Studies 3 Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges Treating soldiers right In news: A BSF soldier deployed at LoC brought forth a video of poor quality of food supplied to soldiers at borders. Is it a onetime incident or is there a pattern? The need of spotlight The video was picked up by media and there was a public outcry at the plight of Indian soldiers. The allegations of the soldier, which also included corruption in supply of food by the senior officers, was taken at face value by the government as well as BSF and have initiated a further probe into the matter. Now, if the allegations are true, those responsible will be identified and punished. If the trail leads to systematic abuse and corruption in the supply of rations to frontline soldiers of the BSF, it is expected to be identified and rooted out. However, it will take time to fix as this requires clean up of the system from top to bottom and immediate quick fixes are not the solution. Similar more videos from paramilitary forces have also emerged which talk about the hardships faced. This shows that India’s paramilitary forces are facing tough challenges not related to their duty which can adversely affect their physical and mental capacity. The Indian security forces The over one million-strong paramilitary forces are the backbone of India’s internal security. Along with the Indian Army, they are the guardians of India’s lengthy, dangerous and inhospitable borders. The scope of work of the BSF, the ITBP, the SSB to stand guard over India’s borders ranges from Kashmir and Ladakh to Rann of Kutch, from the Sunderbans to the thick jungles of the Northeast. The CRPF battle Naxals in India’s heartland whereas CISF guard India’s vital infrastructure. The RPF guards Indian railways and the NSG performs a crack anti-terror and VIP protection role. Thus, the role of these security forces are hybrid in nature and they derive their organisational and administrative structure from army and police. Barring the CRPF and the RPF, all the other forces are the creation of an independent, democratic India, in response to specific needs. CRPF- Central Reserve Police Force CRPF is largest of India's Central Armed Police Forces and is under aegis of Ministry of Home Affairs. Its primary role is to assist State/Union Territories in police operations to maintain law and order and counter insurgency. Now it is involved in other duties such as security arrangements during elections, deployment in UN Mission etc. It came into existence as Crown Representative's Police on 27 July 1939. Post independence, it became the Central Reserve Police Force on enactment of the CRPF Act in 1949. In 2008 a wing called Commando Battalion for Resolute Action (CoBRA) was added to the CRPF to counter the Naxalite movement. RPF- Railway Protection Force It is entrusted with protection of railway passengers, passenger area and railway property of the Indian Railways. It is the only central armed police force which has the power to arrest, investigate and prosecute criminals. Origin traced back to 1855 when East India Company had deployed a contingent for the security of the railway with the owner companies bearing their upkeep. On the recommendation of Railway Police Committee, 1872, Railway Police was organized into ‘Govt. Police’ for Law enforcement. The ‘Company Police’ evolved into present RPF in 1957 passing through "Watch and Ward" phase from 1872-1954. In 1957, a Railway Protection Force Act was enacted by the Parliament and Railway Security Force was renamed as Railway Protection Force. BSF- Border Security Force It is charged with guarding India's land border during peacetime and preventing transnational crime. It is one of the forces of CAPF and was established in the wake of the 1965 War. From independence to 1965, India’s international border was protected by local police belonging to each border state, managed by inter-state coordination. Under the aegis of MHA, its Director General is from IPS cadre inspite of it having its own cadre. It currently stands as the world's largest border guarding force. BSF has been termed as the First Line of Defence of Indian Territories. Where does the problem lie? The video of the soldier brings out three possibilities — either the quality of cooking is poor or quality of ration is poor or ration supplied is insufficient. All the three possibilities determine the agony faced by first line soldiers who have the right to healthy and sufficient food. If the incidence is seen in a macro perspective, there are larger issues raised beyond immediate concerns. The incident may be case of a general unprofessional neglect of welfare issues or systematic corruption by those responsible for procurement and distribution of rations. A soldier- whether on border or in jungles- requires healthy meal to sustain and satisfy its physical and mental need of food. If the basic right to eat is not healthy, it is difficult to upkeep the morale of the security forces with empty or upset stomachs. On the other hand in a reaction to the video, BSF stated that the soldier had a difficult past with incidences of absenteeism without permission, chronic alcoholism, misbehaving etc. Then it raises a question on BSF’s leadership which posted such a soldier on critical location of India-Pakistan’s border. Corruption in security forces have a critical possibility of denting country’s defence capabilities. Putting responsibility of protecting the crucial borders on the soldiers who are indisciplined or habitual offenders affect the morale and attitude of fellow soldiers. Not a healthy environment Currently, the COAS is in charge of issues related to operational preparedness and modernisation of the Indian Army, development of military logistics infrastructure, pay and allowances of officers and soldiers, OROP, etc. Thus, it is imperative to allow him to concentrate on his job rather than attending to less important issues. Similarly, Lt. Gen. Praveen Bakshi is commanding the Eastern Command and looking after the defence of territories bordering China, Nepal, Bhutan, Myanmar and Bangladesh and Lt. Gen PM Hariz is looking after India’s border with Pakistan and commands one of the largest geographical areas in our country. These commanders command lakhs of troops and under the present circumstances, it will be unfair to drag these organisations and the officers into controversies. Moreover, taking support of social media site can be dangerous as it is a double edged sword as rightly called by the COAS. Expression of grievances is important for the forces, but they have to be done within limits given the fact that all uniformed personnel are restricted by law and hence social media cannot become the primary platform for airing these complaints. What needs to be done? These organisations protect India’s borders and should not be shown in negative light. If any issues come up, they need to be highlighted and proper remedial measures be taken through grievances redressal mechanism but not stretch them beyond a point. The facts need to be verified before highlighting. Fake or unnecessary news may deviate the security organisations from their task and thereby affecting their working capacity and morale. The security organisations have to be less sensitive to criticism. They should look into the issues highlighted and investigate them impartially to solve the issues. They should refrain from commenting on each and every news pertaining to their criticism and rather initiate a probe into it. The centre has decided to set up a new mechanism to solve soldiers’ grievances which is another step in providing support to soldiers to express their genuine problems and register their complaints. A formal channel shall give support and solution as against informal videos which will be forgotten soon enough. Conclusion Ethics in armed forces is as much as important as it is in other organisations. The security forces are not mohalla sabhas and hence are bound by discipline, hierarchy and loyalty. The army, paramilitary and CPFs are working overtime to ensure a peaceful and secure living for its citizens. They have enough operational and administrative problems to resolve in their own domains. Smaller and solvable issues should not take larger than required image. If the current case of BSF jawan was an isolated one or not will be established by the impartial inquiry which has to approach grievance redressal with an open mind. The proliferation of media into sensitive nature of armed forces have to be protected but when it comes to any violations of human well-being, it should be looked into from a non-partial view. This will bring in more confidence amongst the forces as well as people. Connecting the dots: What are central armed police force? What the challenges faced by it and suggest measures to address them. The security organisations face twin challenges- external and internal. Comment. 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Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 100]

IASbaba Daily Current Affairs Quiz [Day 100] Click here to get all the Tests– Archives Q.1) Who introduced the electron pair bond? Ernest Rutherford Gilbert N. Lewis Niels Bohr None of the above Q.2) Consider the following statements about Electronic Nicotine Delivery Systems (ENDS) It is also called as e-cigarettes It contains tobacco It does not fall within the ambit of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA) Which of the following statements is/are correct? 1 and 3 1 and 2 2 and 3 All of the above Q.3) Development Administration Partnership (DPA) is under Ministry of External Affairs Ministry of Finance Ministry of Corporate Affairs Prime Minister’s Office (PMO) Q.4) Consider the following statements about Chagres river It is a part of Panama Canal system It is the only river in the world that empties into two oceans Which of the following statement is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.5) Which of the following statements about the International Committee of the Red Cross (ICRC) is/are correct? It is headquartered in Geneva It is a three-time Nobel Prize Laureate It is the only institution explicitly named under International Humanitarian Law (IHL) as a controlling authority All of the above Download the Solution- Click here All the best IASbaba

IASbaba’s Daily Current Affairs – 16th January, 2017

IASbaba’s Daily Current Affairs – 16th January 2017 Archives NATIONAL TOPIC:General Studies 2 Separation of powers between various organs, dispute redressal mechanisms and institutions. Statutory, regulatory and various quasi-judicial bodies RBI, Ministry of Finance and Autonomy In news: the demonetisation decision has once again floated the much debated topic of diminishing autonomy of the central bank and overpowering by the government Background The decision of scrapping 86% of the currency in circulation was mostly welcomed due to its advertisement as ‘a move to remove black money and counterfeit notes from the economy.’ However, its implementation has been largely criticised, the poor and the lower class of the society found themselves devoid of cash, affecting the agriculture and MSMEs the most, lack of financial inclusion through bank linakages etc. Two months after such a policy decision, the autonomy of the central bank of India — the Reserve Bank of India — was touted to be compromisedas it supported the government’s decision. The loss of autonomy? The initial suggestion to demonetize Rs. 1,000 and Rs. 500 currency notes came from the government. It then advised RBI to take the call on demonetization and the RBI board signed off on it before the public announcement. Thereafter, RBI came under lot of flak by accepting government’s decision of demonetisation. Its role in the decision making process and its preparedness came under question with the central bank putting out at least 60 notifications in the first 50 days, some often reversing earlier decisions. Later, there was protest from the RBI Union on operational "mismanagement" in the exercise and Government impinging its autonomy by appointing an official for currency coordination.They mentioned RBI Act 1934 which empowers RBI to regulate the issue of bank notes and hence needs no interference from the government. This made the Ministry of finance release a statement saying“the government fully respects the independence and autonomy of the Reserve Bank of India”. The employees unions represent the masses and hence they were assured that RBI is independent. Within limits Section 26(2) of the RBI Act says that on recommendation of the RBI’s central board, the government may, by notification in the Gazette of India, declare that with effect from a date specified in the notification, any series of bank notes of any denomination shall cease to be legal tender. Hence, when RBI Board decided forwithdrawal of Rs. 1,000 and Rs. 500 notes from the system, there was nothing illegal. Section 7 of the RBI Act empowers the government to give directions to the central bank governor in matters of public interest, which is what the government did with demonetisation. The only areas where government should be prevented from interfering are issuing a licence, investigation and setting policy rates. Decision in public interest The important question which arises is that if demonetization was “necessary in the public interest”. As RBI was in support of the demonetisation move with the government and both believed that this decision was for the greater good of the public and the long-term gains will more than compensate for the short-term pains, there is the opinion of RBI’s independence being compromised. Had RBI not been convinced about the efficacy of the move, even then it couldn’t have probably stopped it as Section 7 of the Act provides that the government can “direct” the central bank. The debate is that had if RBI opposed government and still government would go against RBI by going ahead with demonetisation, the appearance of it being autonomous would have been upheld. History keeps repeating Though demonetisation has portrayed a picture of erosion of RBI’s autonomy, the truth is that its autonomy was getting eroded before demonetisation. The history of central banking in India is replete with many incidences of friction between RBI and government. Previous RBI GovernorsY V Reddy (2003-2008) fought on more on specific issues while Subbarao (2008-2013) fought on broader policy issues. Many a time, the fights were downplayed as creative tensions but they were not so when they actually took place. Though autonomy deals with the RBI’s powers to set monetary policy rates, it has authority over debt issuance, currency issuance and regulating the banking sector. But in recent times, the authority is being challenged by making attempts to create a separate debt management agency, an independent payments regulator and inflation targeting framework. Few instances: The government planned to create sovereign wealth funds and use of foreign exchange reserves for infrastructure development. Earlier, finance ministry issued an ordinance empowering the finance ministry to resolve all disputes between the regulators through Financial Stability and Development Council.This was not acceptable to RBI as existence of such council shall make the public doubtful about independence of regulators. The central bank and finance ministries had lot of duel wrt to interest rates. RBI has also resisted government pressure on making the central bank’s staff regulations statutory in character.Currently, the staff regulations are governed by the RBI’s administrative decisions but once they become statutory, the approval of the government would be mandatory. Conclusion RBI and Ministry of Finance have debated over several issues. Such debates were restricted to certain segments of economy and they did not have the kind of impact on entire nation of 1.3 billion people which demonetisation envisages to have. Had RBI not a supporter of demonetisation and still had to go ahead with it, it would have been a different perspective of fighting to maintain autonomy. But if RBI is convinced of demonetisation’s success, there shouldn’t be doubts on its autonomy. There can be instances when RBI and government can be on same page, for sake of public interest. Can’t it be? Connecting the dots: What do you understand by ‘RBI’s autonomy being compromised’? Substantiate your answer with suitable examples. 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. Reforms in India’s Foreign Trade Policy Introduction The global economy is undergoing a major transition whether it is from the point of view of the producer or the consumer. This major change is occurring due to the rapid technological and socio-economic changes that are occurring. Technological changes have led to major innovations and faster obsolescence of existing products. Earlier, the developing economies had more time to adapt and evolve with the changes in the environment. However, the availability of time is a luxury nowadays which is not easily available. Consumers are defining consumption patterns globally and owing to their technological literacy skills, they are able to adapt to the new products and technologies at a rapid rate. As a result of the above changes and use of artificial intelligence in production processes, there is need for the emerging economies to reorient their trade policies in a manner that keeps pace with this quick evolution. India’s Trade Policy – Problems India’s trade policy has a major limitation wherein it focuses on incentivising businesses after exports have taken place. As a result the trade promotion incentives do not target emerging firms to attain export competitiveness but reward already successful exporters to improve their margins. The trade policy does not have provisions for interventions focussing on value-addition and employment generation. This implies that the policy is not working on long term structural measures but more towards short term result oriented measures which are not sustainable in the long run. Trade promotion is still restricted to traditional trade fair type activities. No doubt that these activities are important for promotion and business development, but a change of approach is required in this age of growing internet and mobile technology which requires activities to be more network oriented. Absence of institutions which can provide support for new product development and their placement in the global market in a selfless manner. These institutions can be used for ancillary activities such as development of prototypes, research and development etc. India’s trade policy also suffers from an archaic design. The trade policy and negotiations over emphasis on tariffs which are not very important for market access gains. Trade today is guided by various other factors such as technical and quality standards. India has not been successful in tapping the potential that the huge domestic markets and the economies of scale offer to attract foreign direct investment and technology transfers. This is observed based on trends which show that MNCs attracted by the size of the Indian consumer base often do not expand operations in India. Investors have to face a combination of high transaction and input costs, supply-side constraints, and infrastructure deficits which is a major obstacle in setting up and operations of industries. As a result international investors also show reluctance in setting up and expanding business in India. Reforms in India’s Trade Policy India has to overcome the existing limitations in the trade policy.  Simultaneously it also has to gear up for the upcoming changes in technology and socio economic setup to meet the rapidly evolving needs and demands of consumers and producers India needs to bring changes as suggested below. India should restructure in a manner where it is able to move human resources and capital from under-performing or dying sectors and re-employ them in more competitive activities. The trade policy should be on which adequately rewards value-addition and promotes employment in more productive sectors. To match the pace of changes taking place, India should promote investment in innovation and new product development and also help such products find a global market. Fair market access for Indian products subject to stringent technological and quality standards in global markets is also essential. The huge Indian markets and the domestic economies of scale that they offer should be tapped efficiently to attract FDI in productive sectors. Indian firms should be assisted and aided to be able to meet the quality and technical standards defined by government regulators or as a result of the competition in the market. Trade agreements and other institutional solutions can be used to reduce the cost of complying with these standards. This will also help in empowerment of the Small and Medium Enterprises (SME). Conclusion The challenges posed by changes in technology and global consumer preferences are changing the pattern of FDI-led outsourcing and reducing the future FDI-led export growth. The governments measures in areas of administrative changes through ease of doing business reforms and infrastructure development might help in reviving the potential of FDI in economic growth. A review of the overall trade strategy is the need of the hour for India. The changes have to be made in terms of trade promotion schemes and activities and the design of trade agreements and negotiating priorities. These measures will determine India’s ability to undertake structural change and push for longer-term competitiveness. Connecting the dots Consumer preferences and production techniques are undergoing a major change in the recent times. Discuss how these changes are impacting the trade patterns and how India needs to restructure its trade policy in the light of these changes. 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