Archives
(PRELIMS & MAINS Focus)
Emergency Credit Line Guarantee Scheme (ECLGS)
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Syllabus
Prelims – Current Affairs
Mains – GS 3 (Economy – Development)
In News: The Centre has announced raising the allocation under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore.
The additional amount has been earmarked exclusively for enterprises in hospitality and related sectors.
The ECLGS was unveiled as part of the comprehensive package announced by the government in May 2020 to aid the MSME sector in view of the economic distress caused by the Covid pandemic and lockdowns.
The tourism sector was one of the worst hit, as people postponed/cancelled their business and leisure travel plans.
With high immunisation levels, progressive roll-back of restrictions and overall economic recovery, conditions are in place for sustained growth in demand for these sectors as well.
The ECLGS credit facility is likely to help the industry fund its expansion, as demand for travel continues to surge.
Emergency Credit Line Guarantee Scheme (ECLGS)
The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced in May 2020 to mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors, especially Micro, Small and Medium Enterprises (MSMEs).
Objective: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020.
100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company, whereas Banks and Non Banking Financial Companies (NBFCs) provide loans.
Eligibility: Borrowers with credit outstanding up to Rs. 50 crore as on 29th February, 2020, and with an annual turnover of up to Rs. 250 crore are eligible under the Scheme.
On 1st August, 2020 the government widened the scope of the Rs. 3 lakh crore-ECLGS scheme by doubling the upper ceiling of loans outstanding and including certain loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit.
Tenor of loans provided under the Scheme is four years, including a moratorium of one year on principal repayment.
Interest rates under the Scheme are capped at 9.25% for Banks and Financial Institutions (FIs), and 14% for NBFCs.
Present Status: As per data by the government and banks, loans of about Rs 3.67 lakh crore have been sanctioned under ECLGS till August 5, and Rs 2.54 lakh crore had been disbursed till April 30.
Benefits of the scheme:
The scheme is expected to provide credit to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses and recover early.
The Scheme is expected to have a positive impact on the economy and support its revival.
National Credit Guarantee Trustee Company Ltd
Subsequent to the Central Budget announcements during the year 2013-14 to set up various credit guarantee funds, a common trustee company in the name and style of National Credit Guarantee Trustee Company Ltd (NCGTC) was set up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, to act as a common trustee company to manage and operate various credit guarantee trust funds.
Source: Indian Express
Previous Year Question
Q.1) What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme”?(2016)
To bring the idle gold lying with Indian households into the economy
To promote FDI in the gold and jewellery sector
To reduce India’s dependence on gold imports
Select the correct answer using the code given below.
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Hyderabad lac bangles set to get GI tag
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Syllabus
Prelims – Art & Culture
In News: Hyderabad-based Creasent Handicraft Artisans Welfare Association has filed an application for securing a Geographical Indications tag for lac bangles that are manufactured in the city.
The Geographical Indications Registry, Chennai has accepted the application and the coveted tag may add to the lustre of the bangles which is a favourite of tourists and are part of the trousseau for brides from the city.
The lac bangles can be seen in the shops that line the Laad Bazaar area near Charminar shimmering with mirror work and encrusted precious stones.
They are handcrafted in the homes by an army of workers who use molten lac and shape them into bangles and turn them into speckled shimmering wonders.
GI tag will pave a way to brand the Hyderabad Lac Bangles better in India and abroad.
GI Tags of Telangana
Pochampally Ikat
Silver Filigree of Karimnagar
Nirmal Toys and Craft
Nirmal Furniture
Nirmal Paintings
Gadwal Sarees
Hyderabad Haleem
Cheriyal Paintings
Siddipet Gollabhama
Narayanpet Handloom Sarees
Pochampally Ikat (Logo)
Adilabad Dokra
Warangal Durries
Telia Rumal
Must Read: What is GI Tag
Source: The Hindu
Previous Year Question
Q.1) Which of the following has/have been accorded ‘Geographical Indication’ status
Banaras Brocades and Sarees
Rajasthani Daal-Bati-Churma
Tirupathi Laddu
Select the correct answer using the code given below.
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Women heroes of India’s freedom struggle
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Syllabus
Prelims – History
In News: In Independence Day address to the nation from the ramparts of the Red Fort, Prime Minister hailed “nari shakti”, and urged people to pledge to not do anything that lowers the dignity of women.
He also paid tribute to women freedom fighters for showing the world the true meaning of India’s “nari shakti”.
A look at the women he named in PM’s speech:
Rani Laxmibai
The queen of the princely state of Jhansi, Rani Laxmibai is known for her role in the First War of India’s Independence in 1857.
Born Manikarnika Tambe in 1835, she married the king of Jhansi.
The couple adopted a son before the king’s death, which the British East India Company refused to accept as the legal heir and decided to annex Jhansi.
Refusing to cede her territory, the queen decided to rule on behalf of the heir, and later joined the uprising against the British in 1857.
Cornered by the British, she escaped from Jhansi fort. She was wounded in combat near Gwalior’s Phool Bagh, where she later died.
Sir Hugh Rose, who was commanding the British army, is known to have described her as “personable, clever and one of the most dangerous Indian leaders”.
Jhalkari Bai
A soldier in Rani Laxmibai’s women’s army, Durga Dal, she rose to become one of the queen’s most trusted advisers.
She is known for putting her own life at risk to keep the queen out of harm’s way.
Till date, the story of her valour is recalled by the people of Bundelkhand, and she is often presented as a representative of Bundeli identity.
According to Ministry of Culture, “Many Dalit communities of the region look up to her as an incarnation of God and also celebrate Jhalkaribai Jayanti every year in her honour.”
Durga Bhabhi
Durgawati Devi, who was popularly known as Durga Bhabhi, was a revolutionary who joined the armed struggle against colonial rule.
A member of the Naujawan Bharat Sabha, she helped Bhagat Singh escape in disguise from Lahore after the 1928 killing of British police officer John P Saunders.
During the train journey that followed, Durgawati and Bhagat Singh posed as a couple, and Rajguru as their servant.
Later, as revenge for the hanging of Bhagat Singh, Rajguru, and Sukhdev, she made an unsuccessful attempt to kill the former Punjab Governor, Lord Hailey.
Born in Allahabad in 1907 and married to Hindustan Socialist Republican Association (HSRA) member Bhagwati Charan Vohra, Durgawati, along with other revolutionaries, also ran a bomb factory in Delhi.
Rani Gaidinliu
Born in 1915 in present-day Manipur, Rani Gaidinliu was a Naga spiritual and political leader who fought the British.
She joined the Heraka religious movement which later became a movement to drive out the British.
She rebelled against the Empire, and refused to pay taxes, asking people to do the same.
The British launched a manhunt, but she evaded arrest, moving from village to village.
Gaidinliu was finally arrested in 1932 when she was just 16, and later sentenced for life. She was released in 1947.
Prime Minister Jawaharlal Nehru, described Gaidinliu as the “daughter of the hills”, and gave her the title of ‘Rani’ for her courage.
Rani Chennamma
The queen of Kittur, Rani Chennamma, was among the first rulers to lead an armed rebellion against British rule.
Kittur was a princely state in present-day Karnataka.
She fought back against the attempt to control her dominion in 1824 after the death of her young son.
She had lost her husband, Raja Mallasarja, in 1816.
She is seen among the few rulers of the time who understood the colonial designs of the British.
Rani Chennamma defeated the British in her first revolt, but was captured and imprisoned during the second assault by the East India Company.
Begum Hazrat Mahal
After her husband, Nawab of Awadh Wajid Ali Shah, was exiled after the 1857 revolt, Begum Hazrat Mahal, along with her supporters, took on the British and wrested control of Lucknow.
She was forced into a retreat after the colonial rulers recaptured the area.
Velu Nachiyar
Many years before the revolt of 1857, Velu Nachiyar waged a war against the British and emerged victorious.
Born in Ramanathapuram in 1780, she was married to the king of Sivagangai.
After her husband was killed in battle with the East India Company, she entered the conflict, and won with support of neighbouring kings.
She went on to produce the first human bomb as well as establish the first army of trained women soldiers in the late 1700s.
Her army commander Kuyili is believed to have set herself ablaze and walked into a British ammunition dump. She was succeeded by her daughter in 1790, and died a few years later in 1796.
Must Read: Chandrashekar Azad + Aurobindo Ghosh
Source: Indian Express
Previous Year Question
Q.1) Who among the following is associated with ‘Songs from Prison’, a translation of ancient Indian religious lyrics in English? (2021)
Bal Gangadhar Tilak
Jawaharlal Nehru
Mohandas Karamchand Gandhi
Sarojini Naidu
Rohingyas
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Syllabus
Prelims – Current Affairs
In News: The Home ministry overrules a statement by Minister for Urban Development decision that 1,100 Rohingya refugees in Delhi would be shifted to flats meant for the economically weaker sections.
MHA also said that it had issued orders that the shanty town where the Rohingya were now living in be designated a detention centre, pending the deportation of all hundreds of people living there.
Who are Rohingyas?
The Rohingyas are the predominantly Muslim ethnic minority group with Bengali dialect.
An estimated 800,000 Rohingyas lived in Myanmar’s western Rakhine State.
They were not regarded as one of the country’s 135 official ethnic groups and were denied citizenship under Myanmar’s 1982 Citizenship Law.
India’s position on Rohingya immigrants:
India considers Rohingya refugees as illegal foreigners.
MHA has already taken up the matter of their deportation with the concerned country through the ministry of external affairs (MEA).
India is not a signatory to the 1951 UN Convention relating to the status of refugees and the 1967 protocol
All foreign nationals (including refuge seekers) are governed by the provisions contained in:
The Foreigners Act, 1946, The Registration of Foreigners Act, 1939, The Passport (Entry into India) Act, 1920 and The Citizenship Act, 1955.
Hence, foreign nationals who enter the country without valid travel documents are treated as illegal migrants.
Source: The Hindu
Indian Express
Delhi, Kolkata most polluted cities globally by PM2.5
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Syllabus
Prelims – Current Affairs
Mains – GS 3 (Environment)
In News: According to a report titled Air Quality and Health in Cities, published by the United States-based Health Effects Institute, Delhi and Kolkata are the top two most polluted cities in terms of exposure to harmful fine particulate matter (PM2.5).
The report examines pollution and global health implications in over 7,000 cities worldwide, focussing on two of the most dangerous pollutants – fine particulate matter (PM2.5) and nitrogen dioxide (NO2).
Overall findings of the Air Quality and Health in Cities report:
According to the report, while exposures to 5 and NO2 pollution tend to be higher in cities located in low and middle-income countries,
The report found most global cities far exceed World Health Organisation’s (WHO) air pollution guidelines, posing serious health risk.
In 2019, 86% of the cities analysed exceeded the WHO’s 10 µg/m3 (microgram per cubic metre) guideline for NO2, impacting about 2.6 billion people.
41 of the 50 cities with the highest increase in PM2.5 are in India, with 9 in Indonesia.
On the other hand, all 20 cities with the highest reduction in PM2.5 pollution from 2010 to 2019 are in China.
India specific findings:
Delhi and Kolkata were ranked first and second in the list of top 10 most polluted cities when PM2.5 levels were compared.
In terms of impact, Delhi and Kolkata ranked sixth and eighth for PM2.5 related disease burden, reporting 106 deaths and 99 deaths per lakh of population, respectively due to exposure to 5 in 2019.
However, no Indian city appeared in the list of top 20 polluted cities when N02 levels were compared (Shanghai at the top with an average annual exposure of 41 µg/m3).
Short-lived climate pollutants: Short-lived climate pollutants (SLCPs) are powerful climate forcers that remain in the atmosphere for a much shorter period than longer-lived climate pollutants, such as carbon dioxide (CO2). They include methane, PM 2.5, NO2, fluorinated gases including hydrofluorocarbons (HFCs), and black carbon.
Source: The Hindu
Indian Express
Previous Year Question
Q.1) Among the following crops, which one is the most important anthropogenic source of both methane and nitrous oxide? (2022)
Cotton
Rice
Sugarcane
Wheat
Pre-poll promises
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Syllabus
Mains – GS 2 (Governance); GS 3 (Development)
In News: During a hearing on a petition to curb the practice of offering or distributing “irrational freebies”, the top court pointed out that political parties have lost elections despite promising freebies.
The court pointed out that voters, if given a chance, will prefer to earn a dignified earning through welfare schemes such as MNREGA and create public assets in rural India.
Freebies do not always decide the outcome of elections for political parties, said the SC.
A Bench led by Chief Justice of India N.V. Ramana said there have been instances of parties losing elections in spite of their promises of freebies.
Background
The court was hearing a petition to curb the practice of offering or distributing “irrational freebies” at the cost of public money, especially in debt-ridden States during the run-up to elections.
The primary concern is about “the right way of spending public money”. Thus the court is dealing with rival contentions raised in the case.
The question is what exactly qualifies as a ‘valid promise’? Can promise of subsidy on power, seeds and fertilisers to small and marginal farmers, free healthcare and drinking water be considered as freebies? Can we treat promises of consumer products, electronics free of cost for all as a welfare measure?” the court asked.
What are Freebies?
Political parties promise to offer free electricity, monthly allowance to unemployed, daily wage workers, and women as well as gadgets like laptops, smartphones, etc. in order to secure the vote of the people.
The states have become habituated to giving freebies, be it in the form of loan waivers or free electricity, cycles, laptops, TV sets, and so on.
Certain kinds of expenditure that are done under populist pressures or with elections in mind may be questionable.
Positive Side of Freebies in India
Welfare Schemes: Freebies not only include unviable pre-election promises but also a number of services that the government provides to meet its constitutional obligations (DPSPs) towards citizens like PDS, Free Covid Vaccine and MGNREGA.
Examples include
The ‘Mid-day Meal Scheme’ was first introduced in 1956 by Tamil Nadu’s Chief Minister K. Kamaraj and then it was adopted as a national programme a decade later.
NT Rama Rao’s promise of rice at Rs. 2 per kg in Andhra Pradesh is the original avatar of the current day National Food Security Programme.
Rythu Bandhu of Telangana and Kalia of Odisha were forerunners of what is now Kisan Samman Nidhi.
Upliftment of Lower Class: As the states with comparatively lower levels of development have a greater percentage of their population living in poverty, such freebies become more useful for upliftment of lower strata in these states.
Essential for Fulfilling Expectations: In a country like India where the states have (or don’t have) a certain level of development, upon the emergence of the elections, there are expectations from the part of people which are met by such promises of freebies.
Negative Impacts of Freebies
Drain on Public Spending: Most of the times, freebies ultimately lead to an excessive and unnecessary drain on public spending, and adds economic burden on states as most Indian states suffer from a poor financial condition and have limited revenue resources.
Freebies for One, Disaster for Other: As a result of reducing prices for consumers beneficiaries, the government overcharge industrial and commercial contracts in order to maintain the internal fiscal balance.
Subsequently the competitiveness of growing industries is reduced, which results in slower industrial growth and commercial price hike.
Increased Fiscal Deficit: Subsidies and freebies creates pressure on government revenues, leading to an increased fiscal deficit and increased interest payments.
Distort Informed Decision Making of Voters: Unregulated populism by offering and distributing ‘irrational freebies’ during election campaigns often create bias in the minds of voters.
Way Forward
Drawing a Line Between Welfare and Freebie:
Freebies must be understood from an economic perspective and connected to taxpayers’ money.
Differences between subsidy and freebie are also essential since subsidies are justified and specially targeted benefits meant to meet specific demands.
Clear Rationale and Indication of Funds:
Programs must provide a clear rationale for investing more in basic amenities and have a clear indication of the funds to sustain the state’s economic health.
Voter Awareness:
In a democracy, the power to block or allow the march of freebies rests with the voters.
There is a need for consensus between regulating the irrational freebies and making sure voters don’t get swayed by the irrational promises.
Judicial Intervention:
A constructive debate and discussion in parliament is difficult since the freebie culture has an impact on every political party, whether directly or indirectly. Therefore, judicial involvement is required in order to propose measures.
The Supreme Court has recently recommended creating an apex authority to provide recommendations on how to regulate gifts given out by political parties.
Focus on Skill Development Rather than Freebies:
It is always better to provide useful skills to the people than to give them freebies.
There is nothing wrong in having a policy-led elaborate social security programme that seeks to help the poor get out of poverty.
But such a programme needs well thought out preparation and cannot be conjured up just before an election.
Finance commission Chief N.K Singh recently pointed out that political competition over such sops is a “quick passport to fiscal disaster”. Hence, there is a need to avoid those before they become the norm.
Source: Indian Express
The Hindu
Arctic warming
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Syllabus
Mains – GS 3 (Environment)
Context: On August 11, Finnish Meteorological Institute researchers published their study in the Communications Earth & Environment journal, concluding that the Arctic is heating four times faster than the rest of the planet.
The warming is more concentrated in the Eurasian part of the Arctic, where the Barents Sea north of Russia and Norway is warming at an alarming rate — seven times faster than the global average.
What is Arctic amplification? What causes it?
Global warming, expedited due to anthropogenic forces since pre-industrial times and has increased the planet’s average temperature by 1.1 degrees Celsius.
While changes are witnessed across the planet, any change in the surface air temperature and the net radiation balance tend to produce larger changes at the north and south poles.
This phenomenon is known as polar amplification; these changes are more pronounced at the northern latitudes and are known as the Arctic amplification.
Among the many global warming-driven causes for this amplification, the ice-albedo feedback, lapse rate feedback, water vapour feedback and ocean heat transport are the primary causes.
Sea ice and snow have high albedo implying that they are capable of reflecting most of the solar radiation as opposed to water and land.
In the Arctic’s case, global warming is resulting in diminishing sea ice.
As the sea ice melts, the Arctic Ocean will be more capable of absorbing solar radiation, thereby driving the amplification.
The ice-albedo feedback and the lapse rate feedback are responsible for 40% and 15% of polar amplification respectively
What are the consequences of Arctic warming?
The causes and consequences of Arctic amplification are cyclical — what might be a cause can be a consequence too.
The Greenland ice sheet saw a sharp spike in the rate and extent of melting between July 15-17 this year.
The unusual summer temperatures resulted in a melt of 6 billion tonnes of ice sheet per day, amounting to a total of 18 billion tonnes in a span of three days, enough to cover West Virginia in a foot of water.
In 2019, Greenland ice melt was the single biggest cause for the rise in the sea level, about 1.5 metres.
If the sheet melts completely, the sea level would rise by seven metres, capable of subsuming island countries and major coastal cities.
The warming of the Arctic Ocean and the seas in the region, the acidification of water, changes in the salinity levels, is impacting the biodiversity, including the marine species and the dependent species.
The Arctic amplification is causing widespread starvation and death among the Arctic fauna.
The permafrost in the Arctic is thawing and in turn releasing carbon and methane which are among the major greenhouse gases responsible for global warming.
The thaw and the melt will also release the long-dormant bacteria and viruses that were trapped in the permafrost and can potentially give rise to diseases.
The best-known example of this is the permafrost thaw leading to an anthrax outbreak in Siberia in 2016, where nearly 2,00,000 reindeer succumbed.
What is the impact on India?
The link between the changing Arctic and the monsoons in the subcontinent is growing in importance due to the extreme weather events the country faces, and the heavy reliance on rainfall for water and food security.
A study titled ‘A possible relation between Arctic sea ice and late season Indian Summer Monsoon Rainfall extremes’ found that the reduced sea ice in the Barents-Kara sea region can lead to extreme rainfall events in the latter half of the monsoons — in September and October.
The changes in the atmospheric circulation due to diminishing sea ice combined with the warm temperatures in the Arabian Sea contribute to enhanced moisture and drive extreme rainfall events.
According to the World Meteorological Organization’s report, ‘State of Global Climate in 2021’, sea level along the Indian coast is rising faster than the global average rate. One of the primary reasons for this rise is the melting of sea ice in the polar regions, especially the Arctic.
The Arctic amplification furthers the idea that “what happens in the Arctic does not remain in the Arctic” and can substantially affect tropical processes far south.
Source: The Hindu
India-US relations
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Syllabus
Mains – GS 2 (International Relations)
Context: The docking of the USNS Charles Drew, a United States Navy dry cargo ship, for repairs at an Indian facility in Chennai last week, marks an important first in the India-U.S. military relationship.
Although bilateral strategic ties have advanced considerably over the past decade, reciprocal repair of military vessels was still a milestone that had not been crossed till now. This is a boost to the Indo-US Strategic Partnership.
Signs of a broader template:
During the bilateral 2+2 dialogue held in April this year, the two countries agreed to explore the possibilities of using Indian shipyards for the repair and maintenance of ships of the U.S. Military Sealift Command (MSC).
The docking of a U.S. military vessel at an Indian facility has both functional and geopolitical implications.
Functional implication:
Functionally, it signals a more efficient leveraging of the Logistics Exchange Memorandum of Agreement (LEMOA) — the military logistics agreement India signed with the U.S. in 2017.
Thus far, India-U.S. cooperation under the pact had largely been confined to the exchange of fuel and stores during joint exercises and relief operations.
But now India may seek reciprocal access to repair facilities at U.S. bases in Asia and beyond.
S. ship’s docking is also a global endorsement of Indian shipbuilding and ship-repair capabilities.
INS Vikrant is the country’s first indigenously constructed aircraft carrier and making similar vessels is a boost for ‘Atmanirbhar Bharat’ and ‘Make-in-India’.
Geo-political implication:
It signals a consolidation of the India-U.S. partnership, and the QUAD Security Dialogue.
Notwithstanding the odd refuelling of foreign warships and aircraft in Indian facilities, India’s military establishment has been wary of any moves that would create the impression of an anti-China alliance.
Yet, Indian decision makers evidently are willing to be more ambitious with the India-U.S. strategic relationship.
New Delhi’s decision to open repair facilities for the U.S. military suggests greater Indian readiness to accommodate the maritime interests of India’s Quad partners.
North Atlantic Treaty Organization (NATO) has been readying to play a more active security role in the Indo- Pacific (IP) region.
New Delhi’ s offer of repair services for U.S. military vessels could kickstart a process that would culminate in India opening its naval bases for friendly foreign warships.
Limited in scope now:
The reality is that the India-U.S. relationship is still some way from crossing a critical threshold.
The agreement with India for the repair of U.S. military vessels is limited to cargo ships.
S. decision makers are unlikely to seek Indian facilities for repair and replenishment of U.S. destroyers and frigates soon until New Delhi is clear about the need for strategic cooperation with the U.S. Navy.
By many accounts, then, the India-U.S. maritime relationship remains a work in progress. There has doubtless been some movement ahead, but it is far from clear whether navy-to-navy ties are headed towards a wide-ranging and comprehensive partnership in the Indian Ocean littorals.
India, while increasing strategic cooperation for national interests, should not abandon its ‘Strategic Autonomy’ stance which allows it more flexibility and options in the fields of external affairs and defence.
Source: The Hindu
A developed Country Goal
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Syllabus
Mains – GS 3 (Economy – Development)
Context: In his Independence Day address, Prime Minister asked Indians to embrace the “Panch Pran” — five vows — by 2047 when the country celebrates 100 years of independence.
The first vow, is to become a developed country in the next 25 years.
What is a “developed” country?
Different global bodies and agencies classify countries differently.
The ‘World Economic Situation and Prospects’ of the United Nations classifies countries into three broad categories: developed economies, economies in transition, and developing economies.
To categorise countries by economic conditions, the United Nations uses the World Bank’s categorisation based on Gross National Income (GNI) per capita.
But the UN’s nomenclature of “developed” and “developing” is being used less and less, and is often contested.
But why is the United Nations classification contested?
It can be argued that the UN classification is not very accurate and, as such, has limited analytical value.
Only the top three mentioned in chart 3 alongside — the US, the UK and Norway — fall in the developed country category.
There are 31 developed countries according to the UN in all. All the rest — except 17 “economies in transition” — are designated as “developing” countries, even though in terms of proportion, China’s per capita income is closer to Norway’s than Somalia’s.
China’s per capita income is 26 times that of Somalia’s while Norway’s is just about seven times that of China’s.
Then there are countries — such as Ukraine, with a per capita GNI of $4,120 (a third of China’s) — that are designated as “economies in transition”.
Where does India stand?
As chart 2 shows, India is currently far behind both the so-called developed countries, as well as some developing countries.
However, to be classified as a “developed” country, the average income of a country’s people matters more.
And on per capita income, India is behind even Bangladesh. China’s per capita income is 5.5 times that of India, and the UK’s is almost 33 times.
The disparities in per capita income often show up in the overall quality of life in different countries.
A way to map this is to look at the scores of India and other countries on the Human Development Index (HDI), a composite index where the final value is reached by looking at three factors: the health and longevity of citizens, the quality of education they receive, and their standard of life.
India has made a secular improvement on HDI metrics. For instance, the life expectancy at birth (one of the sub-metrics of HDI) in India has gone from around 40 years in 1947 to around 70 years now.
India has also taken giant strides in education enrolment at all three levels — primary, secondary, and tertiary.
What is the distance left to cover?
When compared to the developed countries or China, India has a fair distance to cover.
Even though India is the world’s third-largest economy in purchasing power parity (PPP) terms, most Indians are still relatively poor compared to people in other middle income or rich countries.
Ten per cent of Indians, at most, have consumption levels above the commonly used threshold of $10 (PPP) per day expenditures for the global middle class.
How much can India achieve by 2047?
One way to make this assessment is to look at how long other countries took to get there.
For instance, in per capita income terms, Norway was at India’s current level 56 years ago — in the year 1966.
China reached that mark in 2007. Theoretically then, if India were to grow as fast as China did between 2007 and 2022, then, broadly speaking, it will take India another 15 years to be where China is now.
India’s current HDI score (0.64) is much lower than what any of the developed countries had even in 1980. China reached the 0.64 level in 2004, and took another 13 year to reach the 0.75 level — that, incidentally, is the level at which the UK was in 1980.
The World Bank’s 2018 report had made a mention of what India could achieve by 2047.
“By 2047 — the centenary of its independence — at least half its citizens could join the ranks of the global middle class. By most definitions this will mean that households have access to better education and health care, clean water, improved sanitation, reliable electricity, a safe environment, affordable housing, and enough discretionary income to spend on leisure pursuits” .
But it also laid out a precondition for this to happen: “Fulfilling these aspirations requires income well above the extreme poverty line, as well as vastly improved public service delivery.”
Source: Indian Express
Baba’s Explainer – Fintech Regulation in India
Fintech Regulation in India
Syllabus
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Read Complete Details on Fintech Regulation in India
Daily Practice MCQs
Daily Practice MCQs
Q.1) Consider the following statements Emergency Credit Line Guarantee Scheme (ECLGS)
Under ECLGS collateral free additional credit is provided to MSMEs.
Under ECLGS 100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company.
Choose the incorrect statements:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Q.2) Which of the below given pairs is/are correctly matched?
GI Products
State
Tawlhlohpuan
Manipur
Khola Chilli
Kerala
Kaji Nemu
Odisha
Choose the correct code:
1, 2 and 3
1 only
2 only
None
Q.3) Consider the following statements about Durgawati Devi
She was a revolutionary and member of Naujawan Bharat Sabha.
She made an unsuccessful attempt to kill the Punjab Governor, Lord Hailey.
Choose the correct statements:
1 only
2 only
Both 1 and 2
Neither 1 and 2
Comment the answers to the above questions in the comment section below!!
ANSWERS FOR ’18th August 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.
ANSWERS FOR 17th August 2022 – Daily Practice MCQs
Answers- Daily Practice MCQs
Q.1) – d
Q.2) – a
Q.3) – d
table, td, th { border: 1px solid;} table {width: 100%; border-collapse: collapse; }