Jun 3, 2022 Baba’s Explainer

Baba's Explainer - EU ban on Russia’s Oil

ARCHIVES Syllabus GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. GS-3: Cyber Security Context: As part of the sixth package of sanctions since Russia’s invasion of Ukraine, the European Union member states on May 30 reached an agreement to ban 90% of Russian crude oil imports by the end of the year. The partial embargo, worked out following extended negotiations in Brussels, exempts pipeline oil in order to bypass Hungary’s objections to the ban. [su_spoiler open="no" title="Why has Russia invaded Ukraine?" style="fancy" icon="chevron"] Ukraine was a member of the Soviet Union until 1991 when it disintegrated, and Russia has tried to maintain the country in its orbit since then. The new Ukrainian government elected in 2014 favored Europe rather than Russia. Russia worried that Ukraine would join a military alliance – NATO- with the U.S. and Europe that would be a threat to Russia’s security interest. In 2014, Russia took over an area in southern Ukraine called Crimea so as to protect its maritime interests in Black Sea. Launching the invasion on 24 February, 2022 Russia President Putin told that his goal was to "demilitarise and de-Nazify Ukraine". His declared aim was to protect people subjected to what he called eight years of bullying and genocide by Ukraine's government. Another objective was soon added: ensuring Ukraine's neutral status. Ahead of the war, Russian President Putin demanded that NATO turn the clock back to 1997 and reverse its eastward expansion, removing its forces and military infrastructure from member states that joined the alliance from 1997 and not deploying "strike weapons near Russia's borders". That means Central Europe, Eastern Europe and the Baltics. [/su_spoiler] [su_spoiler open="no" title="What has been the reaction of West to Russia’s invasion?" style="fancy" icon="chevron"] The United States and much of Europe are on the side of Ukrainians. They believe Ukraine should be able to decide its own future. The U.S. has ruled out changing NATO’s “open-door policy” which means, NATO would continue to induct more members. The U.S. also says it would continue to offer training and weapons to Ukraine. Also, wide array of sanction are imposed by West that aims to contract Russia's economy. Financial Sanctions: Russia's central bank assets have been frozen to stop it using its $630bn (£470bn) of foreign currency reserves. The United States has barred Russia from making debt payments using the $600m it holds in US banks, making it harder for Russia to repay its international loans. Major banks are shut out of the international SWIFT payment transfer network. Oil & Natural Gas: The US has banned imports of Russian oil and gas; the EU aims to cut gas imports by two-thirds within a year and has announced new package of sanctions that aims at a ban on oil imports; the UK aims to phase out Russian oil by the end of 2022. Germany, Russia's main export destination for natural gas, has announced that it would suspend the new Nord Stream 2 gas pipeline. Flights: Russian airlines have been barred from airspace over the EU, UK, US and Canada. he UK has also banned private jets chartered by Russians. Military goods and mercenaries: A ban on the export of dual-use goods - items with both a civilian and military purpose, such as vehicle parts - has been imposed by the UK, EU and US. Targeting individuals: The US, EU, UK and other countries have sanctioned more than 1,000 Russian individuals and businesses, including: wealthy business leaders, Russian government officials and family members. The UK has also stopped the sale of "golden visas", which allowed wealthy Russians to get British residency rights. Luxury goods: The UK and the EU have banned the export of luxury goods to Russia - including vehicles, high-end fashion and art. The UK has also imposed a 35% tax on some imports from Russia, including vodka. [/su_spoiler] [su_spoiler open="no" title="What was the original proposal of the oil ban by EU?" style="fancy" icon="chevron"] The proposal to completely phase out Russian crude and refined products from EU territory within a time frame of six to eight months was first mooted by European Commission President in early May. However, it needed the agreement of all the 27 EU member states in order to be implemented. [/su_spoiler] [su_spoiler open="no" title="What was the rationale behind imposing oil embargo on Russia?" style="fancy" icon="chevron"] The Russian economy is heavily dependent on energy exports, with the EU paying billions of dollars every month to Russia for its crude and refined products. The EU wants to block this massive revenue inflow which is akin to Europeans bankrolling Russia’s war. The EU has been attempting, ever since the Ukraine invasion, to build consensus on ways to hurt Russia economically so that it is forced to roll back its military offensive. The most obvious route was to stop buying Russian energy, which isn’t easy given European households’ dependence on Russian oil and gas. However, member states agreed to make a start by phasing out Russian oil in the context of two long term EU objectives — reducing fossil fuel dependence in favour of renewables, and eliminating dependence on Russian energy for greater strategic autonomy and energy security [/su_spoiler] [su_spoiler open="no" title="What sanctions has the EU just introduced?" style="fancy" icon="chevron"] Up until now, EU states have been importing 2.2 million barrels per day (bpd) of crude oil from Russia and 1.2 million bpd of oil products. Given the rising price of oil, this has been earning Russia over $1m (£800,000) a day. EU nations have agreed to stop importing any oil from Russia that comes in by sea, which rules out about two-thirds of the total. However, on a temporary basis, they will continue to import Russian oil by pipeline. This is to benefit countries such as Hungary, the Czech Republic, Slovakia, and Bulgaria to continue imports via the Druzhba pipeline, the world’s largest oil pipeline network. Additionally, Hungary has obtained a guarantee that it could even import seaborne Russian oil in case of a disruption to their pipeline supplies as it passes through the war zone in Ukraine. However, Germany and Poland, which also import Russian oil by pipeline, say they will stop doing so by the end of this year. This will effectively reduce the EU's oil imports from Russia to 10 or 11% of its current level. [/su_spoiler] [su_spoiler open="no" title="Why was exemption given for pipeline imports?" style="fancy" icon="chevron"] The exemption for pipeline imports — essentially at the behest of Hungarian Prime Minister Viktor Orban — was made on the logic that landlocked countries (Hungary, Czech Republic and Slovakia) that are heavily dependent on Russian pipeline oil do not have a ready option to switch to alternative sources in the absence of ports. While Hungary imports 65% of its oil via pipeline from Russia, 50% of the Czech Republic’s oil imports are Russian, while Slovakia gets 100% of its oil from Russia. Bulgaria, which gets 60% of its oil from Russia, is not landlocked. But its refineries at present are only equipped to process Russian crude. Until it invests in infrastructure to be able to process non-Russian crude delivered to its ports, it wants to be able to continue importing Russian oil via pipeline and has accordingly claimed the exemption. [/su_spoiler] [su_spoiler open="no" title="Do the exemptions dilute the embargo?" style="fancy" icon="chevron"] EU leaders have countered this criticism by pointing out that even a partial (90%) embargo on Russian oil represents tremendous progress in terms of moving EU away from Russian oil — something that was unthinkable given the magnitude of Europe’s dependence on Russian energy imports. Secondly, EU has reiterated that even the exemption for pipeline imports is not permanent and will be revisited soon. However, no timeline has been specified for a total ban on pipeline imports. [/su_spoiler] [su_spoiler open="no" title="Are there other elements in the sanctions?" style="fancy" icon="chevron"] Apart from the oil embargo, the package of sanctions also contains other tough measures against Russia. These include cutting off Sberbank, Russia’s largest bank that holds one-third of Russian banking assets, from the SWIFT messaging system; a ban on three Russian-owned broadcasting networks from the EU; sanctions on individuals responsible for war crimes in Ukraine; and a ban on EU-based firms offering insurance, financing, brokering or any other technical services related to the transport of oil to Russian ships — a measure aimed at curbing Russia’s ability to divert its oil to non-EU destinations. [/su_spoiler] [su_spoiler open="no" title="How will the sanctions affect Russia?" style="fancy" icon="chevron"] Analysts calculate that a two-thirds cut in Europe’s imports of Russian oil would mean a reduction of 1.2-1.5 million barrels a day in oil, and one million barrels in refined products, which might cause Russia an annual loss in revenue of $10 billion. Given Russia’s limited storage infrastructure, the cutback in demand would force Russia to find other markets. Since that won’t be easy, Russia might have to cut production by 20-30%. So far, Asian importers, especially India, have absorbed some of the excess inventory at discounted prices. But it remains unclear if the embargo would have any impact on Russian military operations in Ukraine. [/su_spoiler] [su_spoiler open="no" title="How will the sanctions affect Europe?" style="fancy" icon="chevron"] It is likely to further fuel inflation in Europe, where many countries are already facing a cost-of-living crisis. EU leaders have tried to balance contradictory pressures — of having to take decisive action against a military aggressor on European soil, but without causing too much pain to its citizens. But European lifestyles have tended to take cheap Russian energy for granted, and if inflation peaks further, the EU runs the risk of losing public support for harsh sanctions. [/su_spoiler] [su_spoiler open="no" title="What about import of Russian gas?" style="fancy" icon="chevron"] Compared to Russian oil, Europe’s dependence on Russian gas is much greater, and this embargo leaves the import of Russian gas — which accounts of 40% of Europe’s natural gas imports — untouched. In other words, Europe will continue to pay Russia for gas imports. But since crude is more expensive than natural gas, the oil ban is expected to hurt Russian revenues. [/su_spoiler] [su_spoiler open="no" title="How has India responded to these developments?" style="fancy" icon="chevron"] India increased its purchases of Russian crude at discounted prices in the months following the Russian invasion, and this policy is expected to continue. The announcement of the EU ban caused an immediate surge in oil prices, and as Europe seeks alternate sources – from West Asia, Africa and elsewhere — for its oil needs, prices are expected to stay high. In this context, with Russia reportedly offering discounts of $30-35 per barrel, India has found it convenient to make the most of the cheap Russian crude on offer. [/su_spoiler] [su_spoiler open="no" title="How has Russia reacted?" style="fancy" icon="chevron"] President Putin has said that Moscow will "redirect" its energy exports to "rapidly growing markets" elsewhere. Russia has banned exports of more than 200 products until the end of 2022, including telecoms, medical, vehicle, agricultural, electrical equipment and timber. In addition, it is blocking interest payments to foreign investors who hold government bonds, and banning Russian firms from paying overseas shareholders. And it has stopped foreign investors who hold billions of dollars worth of Russian stocks and bonds from selling them. [/su_spoiler] [su_spoiler open="no" title="What has been Chinese response and it is helping Russia as sanction begin to hurt??" style="fancy" icon="chevron"] China has sought to remain neutral on the conflict, calling for a peaceful solution. But it has yet to condemn the Russian invasion and has criticised western sanctions. China accounted for around 18% of Russia's overall trade in 2021 - almost $147bn (£110bn). In 2021, total trade between EU and Russia was worth almost twice as much as China's trade with Russia In March 2022, after Russia launched its invasion, overall trade between Russia and China rose over 12% from a year earlier. China is one of the biggest markets for Russian oil, gas and coal. Just a week before the Ukraine invasion, Russia & China agreed on a new Russian coal deal worth more than $20bn. Russia also signed new oil and gas deals with China worth an estimated $117.5bn. The two countries aim to build a new gas pipeline (the Power of Siberia 2). The existing one began operation in 2019, under a 30-year contract worth more than $400bn. However, Russia's biggest energy market by far has been the EU, and it supplies 40% of the bloc's gas and about 26% of its oil. Russian exports of oil and gas to China have been increasing at a rate of over 9% annually for the last five years. Over the longer term, China may want to boost imports of Russian gas to try to reduce its dependence on coal in order to meet targets for cutting greenhouse gases. China has also started expanding its food trade with Russia Until very recently, China had placed restrictions on the importing of wheat and barley from Russia (one of the world's largest producers) because of disease concerns. But these were all lifted on the day the Russian assault on Ukraine began. [/su_spoiler] [su_spoiler open="no" title="Could China support Russia militarily?" style="fancy" icon="chevron"] Moscow has asked China for military equipment in support of its invasion of Ukraine, according to US official quoted in media reports. China says this is untrue and has called the reports "disinformation". In recent years, most of the movement in arms has been the other way. China has relied heavily on Russian military hardware to modernise its armed forces, made increasingly necessary by the imposition of US and European arms embargoes in the wake of the 1989 Tiananmen Square crackdown. About 80% of China's total arms imports were from Russia between 2017 and 2021, according to Stockholm International Peace Research Institute (SIPRI). These Chinese purchases make up 21% of Russia's total arms exports - its second largest global customer. But China has been gradually expanding its own military production capabilities. It's now the world's fourth largest arms exporter. [/su_spoiler] [su_spoiler open="no" title="Could China help Russia financially?" style="fancy" icon="chevron"] Some Russian banks have been banned from the Swift international payment system. This has forced companies in China, as elsewhere, to cut back purchases from Russia as traders struggle to arrange financing. Both China and Russia have encouraged moves towards alternative payment methods in recent years. Russia has its System for Transfer of Financial Messages (STFM) while China has the Cross-Border Interbank Payment System (CIPS), both of which operate in their own currencies. But Swift has continued to dominate the financial transactions in the global trading network. Currently, only about 17% of trade between Russia and China uses the Chinese yuan (up from 3.1% in 2014). Energy trading between the two countries is still mostly done in US dollars. But it is noted that several Chinese firms used yuan to purchase Russian coal and oil in recent months. [/su_spoiler] Mains Practice Question - What are the implications of western sanctions on Russia? Is it altering the geopolitical dynamics in the international order? Note: Write answers to this question in the comment section.  

Jun 3, 2022 IASbaba's Daily Current Affairs

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 2nd June 2022

Archives (PRELIMS & MAINS Focus) [su_box title="Artillery Rockets" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Science and Technology Mains – GS 2 (Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora) In News: The US is sending four HIMAR systems to Ukraine What are ‘artillery rockets’? An artillery rocket is a weapon that is typically propelled by a solid-fuel motor and can carry a variety of warheads. In the 1970s, USA developed a new weapon called MLRS, for Multiple Launch Rocket System, designed for use in the event that Russian armored vehicles massed for World War III on the border of Western Europe. Pentagon developed the more advanced version of MLRS, a more easily transportable version called HIMARS, for High Mobility Artillery Rocket System, which is based on a wheeled truck that is much lighter. Unlike its predecessor, the M142 HIMARS truck carries only one pod of munitions, but it can move much faster on and off-road, and can be shipped on a C-130 cargo plane. US is sending four HIMAR systems to Ukraine. What’s the difference between a rocket and a missile in this context? Generally the word “rocket” is used in a military context to refer to relatively inexpensive unguided weapons powered by solid-fuel motors, while “missile” is generally shorthand for “guided missiles,” more expensive and complicated weapons that use movable fins to steer themselves to their targets and can fly much farther. The Pentagon has already sent short-range, inexpensive and unguided anti-tank weapons that are classified as rockets to Ukraine, like the AT-4, and the longer-range Javelin, which is a guided missile. But in more recent years the military has built weapons it calls “guided rockets” — like GMLRS — which are often older rocket designs upgraded to have guidance systems and movable fins on their nose to steer them. How powerful are these rockets? Using the HIMARS and GMLRS together can offer an amount of firepower that is similar to an airstrike — all from a mobile platform. The upgrade in explosive power for the Ukrainian military will be profound. Does Russia have anything similar? The Russian military has primarily used three types of unguided artillery rockets during the war in Ukraine. The largest, the 300 mm Smerch, can fire a guided rocket, which makes it more accurate, and has a range similar to the GMLRS Do the U.S. rockets have other advantages? There’s one major advantage to the MLRS and HIMARS launchers: They can be fully reloaded within minutes. Both vehicles have a winch that allows them to lower an empty pod to the ground, pick up a new, loaded pod, and pull it into place. The Russian launchers must be manually loaded, tube by tube. Previous Year Questions (PYQs) Q.1) With reference to Agni-IV Missile, which of the following statement(s) is/are correct? (2014) It is surface-to-surface missile. It is fuelled by liquid propellant only. It can deliver one tonne nuclear warhead about 7500 km away. Select the correct answer using the codes given below. 1 only 2 and 3 only 1 and 3 only 1, 2 and 3 Source: Indian Express  [/su_box] [su_box title="Valmiki Tiger Reserve" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Environment; Geography Mains – GS 1 (geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes) In News: The forest department of Bihar has established an elephant rescue centre at Bihar’s Valmiki Tiger Reserve (VTR) to rehabilitate stray, abandoned and injured elephants The facility is in the process of getting approval from the central government VTR is spread over 899 square kilometres in West Champaran district, with Nepal to its north and Uttar Pradesh to its west. VTR provides the perfect atmosphere for elephant habitation Several elephants stray into VTR from neighboring Chitwan National Park in Nepal The plan is not without drawbacks: The risk of human-animal conflicts, though not new, will remain high Valmiki Tiger Reserve Valmiki Tiger Reserve is the only tiger reserve in Bihar and forms the easternmost limit of India's Himalayan Terai forests. The forest contains a mix of bhabar and terai tracts and is located in the Gangetic Plains bio-geographic zone. In 1978, it was designated as a Wildlife Sanctuary. In 1990, Valmiki National Park was established. The Valmiki Wildlife Sanctuary and National Park is the country's 18th Tiger Reserve. Valmiki National Park and Valmiki Wild Sanctuary make up the Valmiki Tiger Reserve. The tiger reserve shares a border with Nepal's Chitwan National Park. The park is bisected by two rivers: the Gandak and the Masan River. Valmiki wildlife sanctuary is bordered on the west by the River Gandak. It enters India at Valmikinagar, where it is joined by two rivulets, Sonha and Pachnad, to form the holy Triveni confluence. A diverse range of flora and fauna can be found in the Valmiki National Park. Moisture-bearing Sal forests, dry-bearing Sal forests, moist mixed deciduous forests without Sal, cane, and tropical seasonal swamp forests with reed beds and wet grasslands make up the park. Fauna includes - Mammals: tiger, rhinoceros, black bear, leopard, wild dog, wild buffalo, wild boar, hyena, leopard cat, wild cat, etc Reptiles – Python, Cobra, King cobra, Krait, Banded krait, Sand boa, Crocodiles, etc Indian bison and one-horned rhinoceros frequently migrate from Chitwan to Valmikinagar. Previous Year Questions (PYQs) Q.1) Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”? (2020) Corbett Ranthambore Nagarjunsagar-Srisailam Sunderbans Source: DTH [/su_box] [su_box title="Gun Control Legislation in India" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Polity Mains – GS 2 (Important Aspects of Governance) Context: In the wake of the Texas school massacre, let’s have a look at Gun Control Legislation in India Arms Act, 1959 The Arms Act, 1959 governs matters related to acquisition, possession, manufacture, sale, transportation, import and export of arms and ammunition. It defines a specific class of ‘prohibited’ arms and ammunitions, restricts their use and prescribes penalties for contravention of its provisions. Key Provisions Gun license applicants in India must be at least 21 years and not convicted of any offence involving violence, of ‘unsound mind’ or a threat to public safety and peace. Upon receiving an application, the licensing authority (i.e., the Home Ministry), asks the officer in-charge of the nearest police station to submit a report about the applicant after thorough vetting. It also enlists specific provisions on curtailing the use of licensed weapons to ensure social harmony. No entity is permitted to sell or transfer any firearm which does not bear the name of the maker, manufacturer’s number or any other visible or stamped identification mark. Any act of conversion (such as shortening the barrel of a firearm or converting an imitation firearm into a firearm) or unlawful import-export is punishable with an imprisonment term of seven years, which may extend to life imprisonment and be liable to monetary fines. The Arms (Amendment) Act, 2019 The Arms Act amended in 2019 reduces the number of firearms that an individual can procure from three to two. The Amended Act also increases the duration of the validity of a firearm license from three years to five years. [/su_box] [su_box title="Food Security" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Mains – GS 3 (Planning, Mobilization of Resources, Growth, Development) Context: For India, a lesson in food security from Sri Lanka Case study: Sri Lanka 60% of Milk demand in Sri lanka is met with the imports - despite Sri Lanka has all the natural resources to become a dairy superpower Saudi Arabia Has the world’s largest vertically integrated dairy company. Almarai Company has six dairy farms in the desert kingdom that together house some 107,000 Holstein Friesian cows producing more than 3.5 MLPD of milk. Thus meeting its milk demand by domestic production This, despite not having the land, water or climate required for green fodder cultivation The contrast between the two models tells us about the importance of food security Lessons India can learn India is hugely import-dependent in edible oils, just as Sri Lanka has been in dairy. India annually imports5-14.5 million tonnes of vegetable oils, again roughly 60 per cent of its total consumption. In the last couple of years, with retail prices of most oils doubling or more the value of India’s vegetable oil imports surged to a record $19 billion in 2021-22. It has brought to light the perils of over-dependence on imports of essential food commodities. As a country with a population many times that of Sri Lanka and Saudi Arabia, India needs to have a strategy of self-reliance in basic foods. India’s dependence on imports for edible oils Demand and supply gap: The gap between demand and supply of edible oils is around 56% and is met through imports MSP for oilseeds: Minimum support price (MSP) operations for oilseeds have been marginal over the years. Cropping patterns of the country: incentives for Indian farmers to grow oilseeds are still weak Way Forward Changing cropping patterns: Encouraging and incentivising farmers to take up oil seed cultivation Initiatives by government: initiatives like National Edible Oil Mission-Oil Palm (NMEO-OP) increasing the MSP of oilseed crops, creation of buffer stock for oilseeds are being implemented by government to boost the domestic production. Stable tariff structure: A stable and equitable trade policy with clear direction would provide clear price signals for different market stakeholders and boost the domestic production of oilseed crops. Moving part of the supply chain locally: the government can import soya beans and crush them domestically rather than simply purchasing Soyabean oil - It would potentially boost oil supplies at home and meet the rising demand for feed from the poultry industry. Source: Indian Express [/su_box] [su_box title="Concretization" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Current Affairs - Environment Mains – GS 3 (Conservation, Environmental Pollution and Degradation) In News: A day after a ‘severe’ category thunderstorm hit the Delhi pavements and roads were strewn with tree branches and trunks that had snapped, and full-grown trees that were uprooted entirely. Poor root growth due to concretization could be a factor that caused trees to keel over Most trees have ‘feeder roots’ that are in the upper layers of the soil. These roots take nutrients and moisture, and have symbiotic fungi in and around them. But these roots cannot survive under concrete, since they need oxygen. If the space around trees is covered with concrete, there will be no life beneath the concrete An NGT order from 2013 states that concrete within a 1 metre radius of trees is to be removed. A notice was issued in 2019 by the forest department; informing all departments and civic agencies that concretisation of trees damages them and is an offence under the Delhi Preservation of Trees Act, 1994. Leaving 1 metre around the trees is not enough to have sustainable growth of avenue trees. They need to have good feeder roots that can spread to take in nutrients. Deepor Beel In News: Assam’s Deepor Beel is perishing from concretisation and waste dumping Deepor Beel has shrunk around 35 per cent in size since 1991 What's happening? Threatened habitats, littered lake A 24-hectare garbage dumping yard lies to the east of the lake in Boragaon. Birds and animals feed on rotten flesh and waste from the site, littering the waterbody and threatening their lives Huge mountains of solid waste are turning the picturesque lake into a stinking drain Concrete factories, houses and warehouses built illegally on the wetland damage the ecology. Rail track impacts wildlife A railway line passing through the bird sanctuary has also been posing a danger to the wildlife in and around the lake. At least 14 jumbos were killed crossing the railway track till 2014 between Rani Reserve Forest and Deepor Beel. Lost livelihoods The deterioration of the lake harmed the livelihoods of several hundred fishers who have depended on it for generations. The government has banned fishing in the core area of the lake. Discharge from a local oil refinery has been further polluting the water and inducing kerosene-like smell in the fish Deepor Beel It is one of the largest freshwater lakes in Assam and the State’s only Ramsar site besides being an Important Bird Area by Birdlife International. It is located towards the southwest of Guwahati city, Assam and is the erstwhile water channel of River Brahmaputra. Importance: It constitutes a unique habitat for aquatic flora and avian fauna. It has both biological and environmental importance besides being the only major storm-water storage basin for Guwahati city. It provides a means of livelihood for a number of local families. Previous Year Questions (PYQs) Q.1) Consider the following pairs (2014) Wetlands:          Confluence of rivers Harike Wetlands:        Confluence of Beas and Satluj/Sutlej Keoladeo Ghana National Park:        Confluence of Banas and Chambal Kolleru Lake:        Confluence of Musi and Krishna Which of the above pairs is/are correctly matched? 1 only 2 and 3 only 1 and 3 only 1, 2 and 3 Source: Indian Express [/su_box] Baba's Explainer - Aadhar & its Security [su_box title="Aadhar & its Security" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Syllabus GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. GS-3: Cyber Security Context: Since the inception of the UID project, institutions and organizations have focused more on linking their databases with Aadhaar numbers and this has raised questions about the safety of the Aadhar ecosystem. Unique Identification Development Authority of India (UIDAI) has issued an advisory asking people to refrain from sharing photocopies of their Aadhaar Card because it could be misused. Read Complete Details on Aadhar & its Security [/su_box] Daily Practice MCQs [su_box title="Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) Consider the following statements Valmiki Tiger Reserve forms the easternmost limit of India's Himalayan Terai forests. River Gandak and River Masan flows through the Valmiki National Park Choose the correct statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements Gun license applicants in India at least must be 18 years old In India the number of firearms that an individual can procure is three Once issued validity of a firearm license is for lifetime Choose the incorrect statements: 1 and 2 1, 2 and 3 3 only 2 and 3 Q.3) Consider the following statements It is one of the largest freshwater lakes in Assam, and the State’s only Ramsar site It is declared as an Important Bird Area by Birdlife International It has shrunk around 35 per cent in size since 1991 The above points refer to which of the following Ramsar site? Thol Lake Wildlife Sanctuary Kabal Taal Sarsai Nawar Jheel Deepor Beel Comment the answers to the above questions in the comment section below!! ANSWERS FOR '2nd JUNE 2022 - Daily Practice MCQs' will be updated along with tomorrow's Daily Current Affairs. [/su_box] ANSWERS FOR 1st JUNE 2022 - Daily Practice MCQs [su_box title="Answers- Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) - b Q.2) - b Q.3) - b [/su_box]

Jun 3, 2022 Baba’s Explainer

Baba's Explainer - Aadhar & its Security

ARCHIVES Syllabus GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. GS-3: Cyber Security Aadhar & its Security Context: Since the inception of the UID project, institutions and organizations have focused more on linking their databases with Aadhaar numbers and this has raised questions about the safety of the Aadhar ecosystem. Unique Identification Development Authority of India (UIDAI) has issued an advisory asking people to refrain from sharing photocopies of their Aadhaar Card because it could be misused. [su_spoiler open="no" title="What is Aadhar?" style="fancy" icon="chevron"] Aadhaar number is a 12-digit random number issued by the UIDAI (“Authority”) to the residents of India after satisfying the verification process laid down by the Authority. Any individual, irrespective of age and gender, who is a resident of India, may voluntarily enrol to obtain Aadhaar number. Person willing to enrol has to provide minimal demographic and biometric information during the enrolment process which is totally free of cost. Demographic information includes name, address, date of birth, gender, mobile phone number, and email address. Biometric information includes 10 fingerprints, two iris scans, and the resident’s photograph. The Aadhaar number is a proof of identity, however, it does not confer any right of citizenship or domicile in respect of an Aadhaar number holder. Each Aadhar number will be unique to an individual and will remain valid for life. Aadhar is easily verifiable in an online, cost-effective way Aadhaar can also be used as a permanent Financial Address. Aadhaar number is devoid of any intelligence and does not profile people based on caste, religion, income, health and geography It is by far the largest biometrics based identification system in the world. The UIDAI and the Aadhar project were functioning on the basis of an executive action till 2016 since it was set up in 2011. [/su_spoiler] [su_spoiler open="no" title="What are the benefits of Aadhar?" style="fancy" icon="chevron"] Tool of governance delivery: Aadhaar identity platform with its inherent features of Uniqueness, Authentication, Financial Address and e-KYC, enables the Government of India to directly reach residents of the country in delivery of various subsidies, benefits and services by using the resident’s Aadhaar number only. Financial Inclusion: Since Aadhar also contains financial address, it facilitates financial inclusion of the underprivileged and weaker sections of the society and is therefore a tool of distributive justice and equality. Promotes Transparency & reduced corruption: It is unique and robust enough to eliminate duplicates and fake identities and may be used as a basis/primary identifier to roll out several Government welfare schemes and programmes for effective service delivery thereby promoting transparency and good governance. Development planning: Enables valuable anonymized demographic data to help development planning at State, District and local government levels Pro-Poor Identification Platform: People belonging to poor & marginalized sections of the society often do not have a valid proof of identity. As a result, they miss out on availing social benefits provided by the government. Aadhaar has been successful in solving this problem. One of the central properties of Aadhaar is its uniqueness and is valid for lifetime, fundamentally becoming a pro-poor identification infrastructure Aids in cracking down Black Money: Use of Aadhaar card in real estate transaction & bank transaction could provide trail of transactions and aid in crackdown of black money Evidence based Policy making: It can be used to monitor development related parameters in such critical sectors as healthcare, education, etc. It can also help to map skilled manpower, based on the vocational training acquired by the individual, to suitable job vacancies/ skill requirements of the State [/su_spoiler] [su_spoiler open="no" title="What are the key features of the Aadhar Act?" style="fancy" icon="chevron"] Aadhar as Governance Delivery Tool: The Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, 2016 makes it clear that Aadhaar authentication is necessary for availing subsidies, benefits and services that are financed from the Consolidated Fund of India. In the absence of Aadhaar, the individual is to be offered an alternate means of identification to ensure she/he is not deprived of the same. Preferred KYC: Aadhaar has been described as a preferred KYC (Know Your Customer) document but not mandatory for opening bank accounts, acquiring a new SIM or school admissions. Mandatory Consent: The requesting entity would have to obtain the consent of the individual before collecting his/her identity and ensure that the information is only used for authentication purposes on the Central Identities Data Repository (CIDR) Prohibition on sharing core biometrics: The Aadhaar Act forbids sharing Core Biometric Information (such as finger print, iris scan, among other biometric attributes) for any purpose other than Aadhaar number generation and authentication. Confidentiality: The Act makes it clear that confidentiality needs to be maintained and the authenticated information cannot be used for anything other than the specified purpose. More importantly, no Aadhaar number (or enclosed personal information) collected from the holder can be published, displayed or posted publicly. Judicial Power: Identity information or authentication records can be produced pursuant to an order of the High Court or Supreme Court, or by someone of the Secretary rank or above in the interest of national security. [/su_spoiler] [su_spoiler open="no" title="What are the structural Problems that UIDAI faces?" style="fancy" icon="chevron"] Exclusion Issues: Labourers and poor people, the primary targets of the Aadhar process, often do not have clearly defined fingerprints because of excessive manual labour. Even old people with “dry hands” have faced difficulties. Weak iris scans of people with cataract have also posed problems. In several cases, agencies have refused to register them, defeating the very aim of inclusion of poor and marginalised people. Safety Concerns: The Aadhaar Data Vault is where all numbers collected by authentication agencies are centrally stored. Its objective is to provide a dedicated facility for the agencies to access details only on a need-to-know basis. CAG’s latest report stated that UIDAI had not specified any encryption algorithm (as of October 2020) to secure the data. Leakages: Many private entities in the country insist on an Aadhaar card, and users often share the details. There’s no clarity on how these entities keep these data private and secure. In the past, there have been reports of Aadhaar databases being leaked and sold. Ubiquitous Usage: Every other entity has started asking for Aadhar number for providing of services which is not mandated by law. More recently with Covid-19 testing, many would have noticed that most labs insist on Aadhaar card data, including a photocopy. It should be noted that it is not mandatory to share this for getting a Covid-19 test done. Procedural drawbacks: There are many private players involved in the whole chain of registering for and generation of Aadhaar numbers before the database finally goes to the government-controlled Central Identities Data Repository (CIDR). UIDAI has not set up a mechanism to monitor whether the entities were adhering to appropriate procedures. It relied solely on audit reports provided to them by the entities themselves. Duplication Issues: The CAG’s reported stated that there were issues of multiple Aadhaars to the same resident and also same biometric data being accorded to multiple residents. UIDAI relies on Automated Biometric Identification Systems for taking corrective actions. However, CAG concluded it was “not effective enough”. Potential for Mass Surveillance: This is about the introduction of the Aadhar number into different data bases. Once the number is seeded in various data bases, it makes convergence of personal information remarkably simple. So, if the number is in the gas agency, the bank, the ticket, the ration card, the voter ID, the medical records and so on, the state, as also others who learn to use what is called the ‘ID platform’, can ‘see’ the citizen at will. [/su_spoiler] [su_spoiler open="no" title="Is identity theft via Aadhaar possible?" style="fancy" icon="chevron"] The NPCI’s Aadhaar Payments Bridge (APB) and the Aadhaar Enabled Payment System (AEPS) facilitate direct benefit transfer (DBT) and allow individuals to use Aadhaar for payments. This requires bank accounts to be linked to Aadhaar. In 2017, researchers at the Centre for Internet and Society (CIS) acquired information of various beneficiaries of such social security and employment schemes such as their Aadhaar numbers, bank account details, job card status, mobile number etc. The same year, the UIDAI in response to an RTI stated that more than 200 central and State government websites publicly displayed details of some Aadhaar beneficiaries such as their names and addresses. Both were made possible by the lack of robust encryption. This data could be potentially used to fraudulently link the rightful beneficiary’s Aadhaar with a distinct bank account, embezzling the beneficiary by impersonation, made possible by the sizeable identity documents available. The UIDAI maintains that merely knowing the bank account number would not be enough to withdraw money from the bank, stating that the individual’s fingerprint, iris data or OTP to a registered mobile number would be required. Centre for Internet and Society (CIS) states that brokers are known to buy tonnes of Aadhaar documents from mobile shops and other places where the identification document is shared. Additionally, there have been instances where employees of service providers were caught stealing biometric information collected solely for Aadhaar authentication. A far-stretch means for acquiring biometrics would involve collecting fingerprints from varied places that an individual might touch unknowingly in a certain space (such as a railing of a staircase) with iris data being acquired from high-resolution cameras. As for mobile verification, phone users in India are known to carry two or more phone numbers at one time. There could be a possibility that the number linked to the Aadhaar is not prominently used. Fraudsters could use this as an opportunity to link their phone numbers instead, update it in the bank using the available information (of the individual) and deprive them of benefits or embezzle funds. [/su_spoiler] [su_spoiler open="no" title="So, how does one keep one’s Aadhaar data safe?" style="fancy" icon="chevron"] While a regular user cannot control data breaches, there are some steps to ensure that one’s Aadhaar card number is not used by anyone else. A look at the steps to keep in mind: Two-factor authentication: It is imperative that your Aadhaar is linked to one’s primary mobile number and email ID. This is where UIDAI will send the one-time password (OTP) if someone tries to access your Aadhaar account or using it for any verification. If one has changed your mobile phone number for any reason, it is best to go to an Aadhaar enrolment centre and update this information as soon as possible. Aadhaar verification can only happen with this OTP. Masked Aadhaar copy: One can download a ‘Masked Aadhaar’ copy from the official UIDAI website. You can then share a photocopy or version of this, instead of your full Aadhaar id. This version only has the last four digits of your Aadhaar number, instead of the full number. It can be downloaded from UIDAI website itself. Locking biometrics: If one is worried about misuse of your Aadhaar biometric data, one can also lock it from the UIDAI website. Logging into MyAadhaar shows this as one of the options on the dashboard. According to the website, “When you lock your biometrics (fingerprint, iris, and face), they can no longer be used for authentication. However, OTP-based authentication would continue to be available as needed.” Users can lock this data temporarily or permanently, depending on preference, and it can be unlocked in both cases. Use VID: The Virtual Identity, or VID, is a system of “Limited KYC” (Know Your Customer). This hides the Aadhaar number from the authenticating agency, while still confirming the identity of the user. This is a 16-digit number, but temporary in nature. So, unlike the permanent 12-digit Aadhaar number, the VID is valid only for some time. The old VID expires when a new one is generated, and only one valid VID number can be there against a particular Aadhaar number at any given point in time. VID confirms your identity to the authenticating entity, say your bank. The VID can be generated from the Aadhaar resident portal or the mAdhaar app on iOS and Android. [/su_spoiler] [su_spoiler open="no" title="What was the recent circular issued by UIDAI and why it was withdrawn?" style="fancy" icon="chevron"] It had cautioned users from publicly sharing their Aadhaar numbers. The withdrawn notice had suggested holders use a masked Aadhaar card instead of the conventional photocopy. Masked Aadhaar’ veils the first eight digits of the twelve-digit ID with ‘XXXX’ characters. It also asked the public to avoid using public computers to download their e-Aadhaar. It stated that only those organisations that have obtained a User License from the UIDAI can use Aadhaar to establish the identity of a person. It added that private entities like hotels or film halls are not permitted to collect or keep copies of Aadhaar card, stating that it is an offence under the Aadhaar Act 2016. It asked users to verify that any private entity demanding to see the Aadhaar card should have a valid User License from the UIDAI. However, it withdrew the notification on the concerns that it would be misinterpreted. [/su_spoiler] [su_spoiler open="no" title="Can Police authorities ask UIDAI to share Aadhar database for crime investigation?" style="fancy" icon="chevron"] While investigating a murder case, the Delhi Police has asked the Delhi High Court to direct the UIDAI to match a suspect’s photograph and chance prints with the Aadhaar database to help it identify the accused. In a first-of-its-kind case, Delhi Police approached Delhi High Court in February under Section 33(1) of The Aadhaar Act, wherein a judge of a High Court can order the disclosure of information on identity in certain cases. In a murder case Delhi Police recovered fingerprints from the spot and footage from CCTV cameras in the crime area showing one of the suspects. However, the fingerprints and pictures did not match with any of the data already available with the police. Investigators now wants to cast the net wider, using Aadhaar’s biometric database that will help Police to identify the accused in this case. In response to a petition filed by Delhi Police in the High Court, UIDAI has said that it cannot share Aadhaar biometric data for crime investigations. The Aadhaar Act requires the UIDAI to ensure confidentiality and security of the identity information it collects. Section 29 of the Aadhar Act prohibits it from sharing core biometric information — fingerprint, iris scan or any such biological attribute — with any agency “for any reason whatsoever”. However, there is a national security exception — an officer not below the rank of the Secretary to the central government can order disclosure of information including identity information or authentication record in the interest of national security Reasons why UIDAI is opposing Delhi Police Plea Prohibited by Law: Section 33, the provision under which Delhi Police has approached the court, allows the disclosure of only identification information including photographs or authentication records, but no core biometric information. Consent is mandatory: The UIDAI has also said that no Aadhaar data can be shared by any individual or entity with anyone without the consent of the resident or holder of the Aadhaar. Not Standardised for Forensic Purpose: UIDAI has also said it does not collect biometric information — iris scans and fingerprints — based on technologies, standards or procedures suitable for forensic purposes. Not Technologically Feasible: UIDAI had told the court that no “1:N” sharing of data was possible, it had to be done on a 1:1 basis only. The Aadhaar technology only permits biometric authentications which are done on a 1:1 basis for which it is necessary to have the Aadhaar number of an individual. [/su_spoiler] Mains Practice Question - Aadhar that has revolutionised the governance delivery is not without problems. Elaborate. Note: Write answers to this question in the comment section.  

Jun 3, 2022 हिन्दी - Daily Prelims CA Quiz

UPSC हिन्दी Quiz– 2022: IASbaba Daily Current Affairs Quiz 3rd June 2022

For Previous Daily Quiz (ARCHIVES) - CLICK HERE करेंट अफेयर्स के प्रश्न 'द हिंदू', 'इंडियन एक्सप्रेस' और 'पीआईबी' जैसे स्रोतों पर आधारित होते हैं, जो यूपीएससी प्रारंभिक परीक्षा के लिए बहुत महत्वपूर्ण स्रोत हैं। प्रश्न अवधारणाओं और तथ्यों दोनों पर केंद्रित हैं। दोहराव से बचने के लिए यहां कवर किए गए विषय आम तौर पर 'दैनिक करंट अफेयर्स / डेली न्यूज एनालिसिस (डीएनए) और डेली स्टेटिक क्विज' के तहत कवर किए जा रहे विषयों से भिन्न होते हैं। प्रश्न सोमवार से शनिवार तक दोपहर 2 बजे से पहले प्रकाशित किए जाएंगे। इस कार्य में आपको 10 मिनट से ज्यादा नहीं देना है। इस कार्य के लिए तैयार हो जाएं और इस पहल का इष्टतम तरीके से उपयोग करें। याद रखें कि, "साधारण अभ्यर्थी और चयनित होने वाले अभ्यर्थी के बीच का अंतर केवल दैनक अभ्यास है !!" Important Note: Comment अनुभाग में अपने अंक पोस्ट करना न भूलें। साथ ही, हमें बताएं कि क्या आपको आज का टेस्ट अच्छा लगा । 5 प्रश्नों को पूरा करने के बाद, अपना स्कोर, समय और उत्तर देखने के लिए ‘View Questions’ पर क्लिक करें। उत्तर देखने के लिए, इन निर्देशों का पालन करें: 1 - 'स्टार्ट टेस्ट/ Start Test' बटन पर क्लिक करें प्रश्न हल करें'टेस्ट सारांश/Test Summary'बटन पर क्लिक करें'फिनिश टेस्ट/Finish Test'बटन पर क्लिक करेंअब ‘View Questions’बटन पर क्लिक करें - यहां आपको उत्तर और लिंक दिखाई देंगे।To take the Test -Click Here

Jun 3, 2022 Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 3rd June 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test - Click Here

Jun 2, 2022 Topper's From IASbaba

[VIDEO] A Story of Grit, Determination, and Perseverance! RANK 44, ANJALI SHROTRIYA UPSC CSE 2021, BABA’S GURUKUL & GEOGRAPHY OPTIONAL Student – TOPPER’S STRATEGY!

Hello Everyone, Here is a story of Grit, Determination, and Perseverance! UPSC Topper 2021, ANJALI SHROTRIYA Rank 44 has been a student of Baba's Gurukul, Prelims Exclusive Program (PEP), TLP+ Mains Test Series and Geography Optional Foundation Course shares her preparation strategy with Jitendra Sir (Mentor at IASbaba). She cleared the exam in her 4th Attempt with GEOGRAPHY as her optional subject. She has been associated with IASbaba for the past 2-3 years for all the three stages (Prelims, Mains and Interview) of the examination. She was not able to clear the Prelims in her first two attempts and we still remember how disappointed she was in 3rd attempt when she missed the final list by 8 marks (936 was her score and the cutoff was 944), and the very next year she made sure that she was in the Top 50 Ranks. And the complete credit goes to her sheer hard work, determination, and perseverance. In our experience of mentoring students in the last 6 to 7 seven years, we have seen many students going through this phase of ups and downs and by end of the day, it's the grit, determination, and self-belief that matters and this is a very fine example. In the VIDEO, ANJALI has discussed Important Timelines: 0:22 Anjali was part of Baba's Gurukul, Prelims Exclusive Program (PEP), TLP+ Mains Test Series, Geography Optional Foundation Course & Interview Mentorship Program (IMP) 4:44 How do you keep yourself Motivated? 6:40 Do's & Don't of UPSC Preparation 8:40 'Integrated Preparation' 11:05 Role of Gurukul Program 14:20 Prelims Strategy 21:01 Mains Strategy 21:07 Changes you have made in your Mains Preparation from Earlier Attempt 32:05 Geography Optional Strategy 40:32 Essay Strategy 50:47 Strategy for Personality Test 58:53 Advice to Aspirants ANJALI'S UPSC/CSE 2021 MARK SHEET For Enquiries: EMAIL ID: support@iasbaba.com CONTACT NO: 9169191888 (10 AM – 6 PM) Please do not make calls before or after the given time.  

Jun 2, 2022 हिन्दी - Daily Prelims CA Quiz

UPSC हिन्दी Quiz– 2022: IASbaba Daily Current Affairs Quiz 2nd June 2022

For Previous Daily Quiz (ARCHIVES) - CLICK HERE करेंट अफेयर्स के प्रश्न 'द हिंदू', 'इंडियन एक्सप्रेस' और 'पीआईबी' जैसे स्रोतों पर आधारित होते हैं, जो यूपीएससी प्रारंभिक परीक्षा के लिए बहुत महत्वपूर्ण स्रोत हैं। प्रश्न अवधारणाओं और तथ्यों दोनों पर केंद्रित हैं। दोहराव से बचने के लिए यहां कवर किए गए विषय आम तौर पर 'दैनिक करंट अफेयर्स / डेली न्यूज एनालिसिस (डीएनए) और डेली स्टेटिक क्विज' के तहत कवर किए जा रहे विषयों से भिन्न होते हैं। प्रश्न सोमवार से शनिवार तक दोपहर 2 बजे से पहले प्रकाशित किए जाएंगे। इस कार्य में आपको 10 मिनट से ज्यादा नहीं देना है। इस कार्य के लिए तैयार हो जाएं और इस पहल का इष्टतम तरीके से उपयोग करें। याद रखें कि, "साधारण अभ्यर्थी और चयनित होने वाले अभ्यर्थी के बीच का अंतर केवल दैनक अभ्यास है !!" Important Note: Comment अनुभाग में अपने अंक पोस्ट करना न भूलें। साथ ही, हमें बताएं कि क्या आपको आज का टेस्ट अच्छा लगा । 5 प्रश्नों को पूरा करने के बाद, अपना स्कोर, समय और उत्तर देखने के लिए ‘View Questions’ पर क्लिक करें। उत्तर देखने के लिए, इन निर्देशों का पालन करें: 1 - 'स्टार्ट टेस्ट/ Start Test' बटन पर क्लिक करें प्रश्न हल करें'टेस्ट सारांश/Test Summary'बटन पर क्लिक करें'फिनिश टेस्ट/Finish Test'बटन पर क्लिक करेंअब ‘View Questions’बटन पर क्लिक करें - यहां आपको उत्तर और लिंक दिखाई देंगे।To take the Test -Click Here

Jun 2, 2022 Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 2nd June 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test - Click Here

Jun 2, 2022 IASbaba's Daily Current Affairs

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 1st June 2022

Archives (PRELIMS & MAINS Focus) [su_box title="Dominance of e-3-wheelers" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Government schemes Mains – GS 3 (Science and Technology- Developments and their Applications and Effects in Everyday Life; Infrastructure) Context: India’s EV ambition rides on three wheels Background India’s push for electric vehicles (EVs) was renewed when phase-II of the Faster Adoption and Manufacturing of (Hybrid and) Electric (FAME) Vehicles scheme in India, with an outlay of ₹10,000 crore, was approved in 2019. India was doubling down on its EV ambitions, focusing on cultivating demand for EVs at home while also developing its own indigenous EV manufacturing industry which could cater to this demand. FAME II Aims to boost electric mobility and increase the number of electric vehicles in commercial fleets Initially envisioned for three years, FAME-II got a two-year extension in June 2021 owing to a number of factors including the pandemic. It aims to support 10 lakh e-two-wheelers, 5 lakh e-three-wheelers, 55,000 e-four-wheeler passenger cars and 7,000 e-buses. As a part of FAME-II, the government has made a push for indigenous manufacturing of EVs While e-two-wheelers and e-four-wheelers receive significant coverage, a three-wheeled underdog has been quietly dominating the Indian EV space. The dominance of e-3-wheelers Three-wheeler EVs like e-autos and e-rickshaws account for close to 65% of all EVs registered in India while two-wheeler EVs come at a second with over 30% of registrations and passenger four-wheeler EVs at a meagre 2.5% Under the targets for FAME-II, e-three-wheelers have crossed over 4 lakh vehicles of the 5-lakh target since 2019. At the current rate, e-three-wheelers are expected to breach the 5-lakh target by 2023 Factors responsible for success of e-3-wheelers The EV registrations data show that Assam, Bihar, Delhi, Uttar Pradesh and West Bengal account for close to 80% of all e-three-wheeler registrations Of these five States, Assam, Delhi, U.P., and West Bengal have formalised EV policies Indigenously designed and produced, e-three-wheelers like e-rickshaws have become a common sight in these States These vehicles are produced by local workshops and small enterprises and have come to dominate the e-three-wheeler market With financial assistance from FAME-II, local manufacturers have built a truly Indian EV with its unique design catering to Indian commuter needs. Legacy automakers have been struggling to compete with these local producers. The focus of the EV policies of these five States is on accelerating adoption of EVs among consumers and promoting local manufacturing. The success India has experienced in the e-three-wheeler space has come from developing both the demand and supply sides. Subsidies, tax exemptions, and interest-free loans have successfully rallied demand for these vehicles. These vehicles are easy to maintain, and have relatively low operating costs, making them immensely popular among operators E-2-wheelers and e-4-wheelers This success in the e-three-wheeler space has been difficult to replicate in the e-two-wheeler and e-four-wheeler space, which have problems both on the demand and supply side Both the types are associated with personal use, consumers are justifiably apprehensive in adopting such vehicles given the host of issues which come with it. The recent incidents of fires in e-scooters have added to the apprehension. Reliable manufacturers with proven track records in the two-wheeler and four-wheeler EV space in India are hard to come by - this adds to the supply side crunch and there are very few affordable offerings for the consumer. Issues to be addressed The current policies focuses on accelerating adoption of EVs among consumers, have spurred an e-three-wheeler dominance The major aspect that is missing the attention of policy makers is adequate passenger safety Local manufacturing enterprises often lack the necessary resources or the motivation to invest in design developments focusing on safety. Lack of proper oversight from regulatory bodies over these manufacturers adds to the woes. The current State-level policies have led to an increasingly fragmented manufacturing industry with non-uniform standards - This fragmentation has led to legacy automakers struggling to compete with the large number of manufacturers in every State Way Forward Future EV policies must incorporate appropriate design and passenger safety standards EV policies must address the issues faced by legacy automakers and ensure they are not demotivated from competing in the e-three-wheeler space. Their resources are necessary for designing and manufacturing more advanced and safer e-three-wheelers Future EV policies must therefore take into account the existing and emerging stakeholders on the demand and supply sides for effective implementation. With the prevailing trajectory of EVs, India must take lessons from its e-three-wheeler success story to sustain its EV ambitions. Previous Year Questions (PYQs) Q.1) What is the aim of the programme ‘Unnat Bharat Abhiyan’? (2017) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities. Connecting institutions of higher education with local communities to address development challenges through appropriate technologies. Strengthening India’s scientific research institutions in order to make India a scientific and technological power. Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them. Source: The Hindu  [/su_box] [su_box title="Free trade deal between Israel and UAE" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Current Affairs Mains – GS 2 (Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora) In News: Israel signed a free trade deal with the United Arab Emirates its first with an Arab country, building on their U.S.-brokered normalisation of relations in 2020 i.e. Abraham Accords UAE-Israel trade will exceed $2 billion in 2022, rising to around $5 billion in five years, bolstered by collaboration in renewable, consumer goods, tourism and the life sciences sectors The UAE was the first Gulf country to normalise ties with Israel and only the third Arab nation to do so after Egypt and Jordan. The signing came two days after thousands of flag-waving Israelis marched through Jerusalem's Old City during a nationalist procession marking Israel's 1967 capture of east Jerusalem. Israel annexed east Jerusalem in 1980, a move never recognised by the international community. The UAE "strongly condemned" what it called Israel's "storming" of Jerusalem's Al Aqsa mosque compound, one of Islam's holiest sites. Abraham Accords Abraham Accords deal, sponsored by the US, was part of the country’s regional security agenda to counter Iran. As part of this security agenda — signed during the Trump administration — the US prioritised improving relations between Israel and the Gulf countries, something that the latter nations have been wary of because of the Israel-Palestine conflict. As part of the Abraham Accords, Israel agreed to stop further annexation of Palestinian territory. The accords were signed by the leaders of Bahrain, Israel and the UAE in September 2020. After Egypt in 1979 and Jordan is 1994, the UAE became the third Arab country to agree to formally normalize relations with Israel, as well as the first Persian Gulf country to do so. Previous Year Questions (PYQs) Q.1) The term “two-state solution “is sometimes mentioned in the context of the affairs of (2018) China Israel Iraq Yemen Source: The Hindu [/su_box] [su_box title="Liquid Nano Urea" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Economy - Agriculture Mains – GS 3 (Technology Missions; Issues related to Direct and Indirect Farm Subsidies) In News: Recently Prime Minister of India officially inaugurated the country’s first liquid nano urea plant at Kalol, Gujarat This patented product is expected to not only substitute imported urea, but to also produce better results in farms. IFFCO commissioned the Kalol liquid nano urea plant, the country’s first, in August 2021. Liquid nano urea It is essentially urea in the form of a nanoparticle. Urea is a chemical nitrogen fertiliser, white in colour, which artificially provides nitrogen, a major nutrient required by plants. The product has been developed by Indian Farmers Fertiliser Cooperative Limited (IFFCO) Nano Biotechnology Research Centre (NBRC) at Kalol. While conventional urea has an efficiency of about 25 per cent, the efficiency of liquid nano urea can be as high as 85-90 per cent. Conventional urea fails to have the desired impact on crops as it is often applied incorrectly, and the nitrogen in it is vaporised or lost as gas - A lot of nitrogen is also washed away during irrigation. Liquid nano urea is sprayed directly on the leaves and gets absorbed by the plant. Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are absorbed by the stomata, pores found on the epidermis of leaves 2-4 ml of nano urea should be mixed a litre of water and sprayed on crop leaves at active growth stages Liquid nano urea contains 4 per cent total nitrogen (w/v) evenly dispersed in water. The size of a nano nitrogen particle varies from 20-50 nm. Liquid nano urea has a shelf life of a year, and farmers need not be worried about “caking” when it comes in contact with moisture In what respects is the indigenous liquid nano urea a better bet than imported urea? The liquid nano urea produced by IFFCO comes in a half-litre bottle priced at Rs 240, and carries no burden of subsidy currently. By contrast, a farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea. The government’s fertilizer subsidy payout this financial year will be Rs 2 lakh crore, up 25 per cent from the Rs 1.6 lakh crore it paid last year. Indian Farmers Fertiliser Cooperative Limited It is one of India's biggest cooperative societies which is wholly owned by Indian Cooperatives. Founded in 1967 with just 57 cooperatives, today it is an amalgamation of over 36,000 Indian Cooperatives with diversified business interests ranging from General Insurance to Rural Telecom apart from its core business of manufacturing and selling fertilisers. Objective: To enable Indian farmers to prosper through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare. Previous Year Questions (PYQs) Q.1) What are the advantages of fertigationin agriculture? (2020) Controlling the alkalinity of irrigation water is possible. Efficient application of Rock Phosphate and all other phosphaticfertilizers is possible. Increased availability of nutrients to plants is possible. Reduction in the leaching of chemical nutrients is possible. Select the correct answer using the code given below: 1, 2 and 3 only 1, 2 and 4 only 1, 3 and 4 only 2, 3 and 4 only Q.2) With reference to chemical fertilizers in India, consider the following statements: (2020) At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. Ammonia, which is an input of urea, is produced from natural gas. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries. Select the correct answer using the code given below: 1 only 2 and 3 2 only 1, 2 and 3 Source: Indian Express [/su_box] [su_box title="Astra Mk-1" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Science - Defense Mains – GS 3 (Security Challenges and their Management in Border Areas) In News: The Ministry of Defence signed a contract with the Hyderabad-based public-sector Bharat Dynamics Ltd (BDL) for supply of the Astra Mark-1, at a cost of Rs 2,971 crore, for deployment on fighter jets of the Indian Air Force and Indian Navy. Astra Mk-1 The Astra Mk-1 is a beyond visual range (BVR), air-to-air missile (AAM). Beyond Visual Range Air-to-Air Missile (BVRAAM) technology enables the fighter-pilots to shoot precisely at the enemy targets which are beyond their visual range AAMs are fired from an airborne asset to destroy an airborne target The missile has been designed and developed by the Defence Research and Development Organisation (DRDO) for deployment on fighter jets like Sukhoi-30 MKI and Tejas of the IAF and the Mig-29K of the Navy Range: While the range for Astra Mk-1 is around 110 km, the Mk-2 with a range over 150 km is under development Speed: The missile can travel at speeds more than four times that of sound and can reach a maximum altitude of 20 km, making it extremely flexible for air combat. Strategic significance The missile has been designed based on requirements specified by the IAF for BVR as well as close-combat engagement, reducing the dependency on foreign sources. AAMs with BVR capability provides large stand-off ranges to own fighter aircraft. Stand-off range means the missile is launched at a distance sufficient to allow the attacking side to evade defensive fire from the target. It can neutralise adversary airborne assets without exposing adversary air defence measures. Astra is technologically and economically superior to many such imported missile Source: Indian Express [/su_box] [su_box title="Moratorium on e-commerce trade" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – International Organizations Mains – GS 2 (Important International Institutions, agencies and fora - their Structure, Mandate) In News: India to oppose continuation of moratorium on customs duties on e-commerce trade at WTO meets in Geneva Allowing the moratorium to lapse is important for developing nations to preserve policy space for their digital advancement, to regulate imports and generate revenue through customs duties. The United Nations Conference on Trade and Development has estimated the potential tariff revenue loss for developing countries every year due to the moratorium on e-transmissions at $10 billion as compared to only $289 million for high-income countries. Background The WTO members have agreed not to impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive ministerial conferences (MC) The moratorium was extended at the 11th MC in Argentina in 2017 for two years. In the General Council meeting in December 2019, members agreed to maintain the current practice till the 12th Ministerial Conference. India and South Africa on several occasions have asked the organisation to revisit the issue and have highlighted the adverse impact of the moratorium on developing countries. India is witnessing an exponential rise in imports of electronic transmissions, mainly of items like movies, music, video games and printed matter, some of which could fall within the scope of the moratorium. World Trade Organization The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The WTO has 164 members (including European Union) and 23 observer governments (like Iran, Iraq, Bhutan, Libya etc). History The General Agreement on Tariffs and Trade (GATT) traces its origins to the 1944 Bretton Woods Conference In Havana in 1948, the UN Conference on Trade and Employment concluded a draft charter for the ITO - International Trade Organization (ITO) which would have created extensive rules governing trade, investment, services, and business and employment practices. The Havana Charter never entered into force Meanwhile, an agreement as the GATT signed by 23 countries in Geneva in 1947 came into force on Jan 1, 1948 with the following purposes: To phase out the use of import quotas And to reduce tariffs on merchandise trade, The GATT became the only multilateral instrument (not an institution) governing international trade from 1948 until the WTO was established in 1995 The Uruguay Round, conducted from 1987 to 1994, culminated in the Marrakesh Agreement, which established the World Trade Organization (WTO). Governance Ministerial Conference The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. General Council It has representatives from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years. Dispute Settlement Body (DSU) The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members. Such disputes may arise with respect to any agreement contained in the Final Act of the Uruguay Round that is subject to the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). Appellate Body The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). The DSB shall appoint persons to serve on the Appellate Body for a four-year term. It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members. The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel The Appellate Body has its seat in Geneva, Switzerland. Previous Year Questions (PYQs) Q.1) Consider the following statements: (2017) India has ratified the Trade Facilitation Agreement (TFA) of WTO. TFA is a part of WTO’s Bali Ministerial Package of 2013. TFA came into force in January 2016. Which of the statements given above is/are correct? 1 and 2only 1 and 3 only 2 and 3 only 1, 2 and 3 Q.1) In the context of which of the following do you sometimes find the terms 'amber box, blue box and green box' in the news? (2016) WTO affairs SAARC affairs UNFCCC affairs India-EU negotiations on FTA Source: The Economic Times [/su_box] [su_box title="Trade to boost India’s growth" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Mains – GS 3 (Growth and Development) Context: Exports can help Indian economy reach the $5-trillion target sooner than expected. Stats India’s exports surpassed the pre-pandemic level of $331 billion in FY 2018-19 and reaching $418 billion in FY 2021-22 Total exports, including the services exports of around $240 billion, amount to more than $650 billion. Total merchandise trade, including imports of $610 billion, amounts to $1.28 trillion for FY 2021-22. What the above stats indicate? The revival of exports has provided relief at a time when major components of aggregate demand such as consumption and investment had been slowing down. These milestones on the trade front are a sign of a rising India, which would certainly accelerate the growth If India sustain the momentum and capitalize on exports’ potential, this will help achieve the $-5 trillion economy goal sooner The trade achievements are a sign of growing confidence in the Indian economy Reasons for this achievement The proactive policy schemes by the government — such as merchandise exports scheme, duty exemption scheme, export promotion capital goods, transport and marketing assistance scheme — have helped the export sector. Schemes like the gold card scheme and interest equalization scheme by RBI and the market access initiative by the export promotion councils are helpful Export Potential of India Though achievements in trade are laudable, India still has much potential. For example, the annual growth rate of India’s exports between 2011 to 2020 is a little over 1 per cent compared to 3 per cent and 4.2 per cent, respectively, for China and Bangladesh. There is a huge difference in India’s exports potential and actual exports in many sectors, especially pharmaceuticals, gems and jewellery and chemicals. What needs to be done? Policy reforms India has to aggressively increase its participation in global value chains (GVCs) with its best endowment of working-age population and its strength in labour-intensive manufacturing As the Economic Survey (2019-20) suggests, “assemble in India”, particularly in network products, will increase India’s share in world exports to 6 per cent and create 80 million jobs. It is time to find out and research why MNCs are (re)locating to countries like Vietnam, Bangladesh and Mexico when India offers a big market and cheap manpower. State-level reforms in reducing red tape and complex laws including taxation will go a long way. Institutional Reforms India also needs to work on institutions facilitating trade, processes for exports and imports and logistics that not only reduce trade and transaction costs but also ensure reliability and timely delivery, which is important to becoming part of GVCs. India’s rank in the logistics performance index is 44 while China’s rank is 26 and South Korea’s 25. The unit cost of a container of exports is significantly higher for India compared to China, South Korea and others, thereby reducing the price competitiveness of India’s exports. Signing FTAs One way to reduce the complexities of trade and business is by signing free trade agreements. These not only reduce tariffs and give market access but bring down non-tariff barriers such as administrative fees, labelling requirements, anti-dumping duties etc Focus on Service Exports As per the Ministry of Commerce (MoC), services exports are expected to reach the target of $1 trillion before the deadline of 2030. India has done well in IT and IES exports and it can accelerate services exports in other categories including travel and tourism and business, commercial and financial services Capitalize on opportunities arising out of geopolitical conflicts India must utilize opportunities arising out of geo-political conflicts and the intention of the world to diversify its supply chain portfolio. Source: Indian Express [/su_box] [su_box title="Political Parties reforms in India" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Polity Mains – GS 2 (Salient Features of the Representation of People’s Act; Appointment to various Constitutional Posts, Powers, Functions and Responsibilities of various Constitutional Bodies) Context: Democratizing Political Parties At last count, there were 2,858 parties registered with the Election Commission of India. Of these, eight are national parties, 54 are state parties and 2,797 are unrecognised parties. The internal functioning and structures of an overwhelming number of these political parties are opaque and ossified The roots of the most pertinent challenges faced by Indian politics today can be traced to the lack of intra-party democracy Need for Democracy in Political Parties The absence of intra-party democracy has contributed to political parties becoming closed autocratic structures. To avoid factionalism and division of parties A democratic party will be accountable to its party members A transparent party structure with transparent processes will allow proper ticket distribution and candidate selection. Lack of democracy has led to problem of candidates with criminal backgrounds contesting elections. Factors responsible for lack of democracy Dynasty politics: The lack of intra-party democracy has also contributed to the growing nepotism in political parties. Personality cult: There is a tendency of hero worship in people and many times a leader takes over the party Centralized structure of Political Parties ECI’s power to require parties to hold regular internal elections for office bearers, and candidate selection is compromised in the absence of any penal provisions - Under Section 16-A of the Election Symbols (Reservation and Allotment) Order, 1968 to either suspend or withdraw recognition to a political party as a national or state party. Way Forward Law to Compulsify Elections: The political party shall hold elections of national and State levels in the presence of the observers to be nominated by the ECI. Empowering ECI: appointment of external election monitors and other innovative mechanisms that the internal democratic processes of all political parties play out in a just, fair and credible manner. Seats in Party can be reserved for women and members of the backward community including minorities. Source: Indian Express [/su_box] Baba's Explainer - Demographic Dividend [su_box title="Demographic Dividend" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Syllabus GS-1: Population & associated issues GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Context: DEMOGRAPHY has, for some years now, been recognized as a driver of various key parameters of a nation. Developing policies and investments to secure the future of citizens requires that governments know the size, sex, location and age structure of their present and future populations. A country with rapid population growth, for example, could benefit for many years from a “demographic dividend”. Read Complete Details on Demographic Dividend [/su_box] Daily Practice MCQs [su_box title="Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) Which of the following countries borders Red Sea? Egypt Lebanon UAE Sudan Choose the correct statements: 1 and 2 1 and 4 2 and 3 1, 2, 3 and 4 Q.2) Abraham Accords recently in news is related to? Agreement between Armenia and Azerbaijan over Nagorno-Karabakh conflict USA sponsored deal to improve relations between Israel and the Gulf countries UN mediated negotiation agreement between Israel and Palestine Organization of the Islamic Cooperation intiative to fight radicalization Q.3) Consider the following statements about Astra Mk-1 missile It is a surface-to-air missile The missile has been designed and developed by the Defense Research and Development Organisation Range of Astra Mk-1 is 200km Choose the incorrect statements: 1, 2 and 3 1 and 3 3 only None Comment the answers to the above questions in the comment section below!! ANSWERS FOR '1st JUNE 2022 - Daily Practice MCQs' will be updated along with tomorrow's Daily Current Affairs. [/su_box] ANSWERS FOR 31st MAY 2022 - Daily Practice MCQs [su_box title="Answers- Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) - c Q.2) - d Q.3) - c [/su_box]

Jun 1, 2022 Baba’s Explainer

Baba's Explainer - Demographic Dividend

ARCHIVES Syllabus GS-1: Population & associated issues GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Context: DEMOGRAPHY has, for some years now, been recognized as a driver of various key parameters of a nation. Developing policies and investments to secure the future of citizens requires that governments know the size, sex, location and age structure of their present and future populations. A country with rapid population growth, for example, could benefit for many years from a “demographic dividend”. [su_spoiler open="no" title="What is demographic dividend?" style="fancy" icon="chevron"] The demographic dividend is the economic growth potential that can result from shifts in a population's age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older) For example, the late twentieth century saw a demographic dividend in Asia. Gross domestic product increased sevenfold, an economic boom described as the “Asian economic miracle.” With more people in the labor force and fewer children to support, a country has a window of opportunity for economic growth if the right social and economic investments and policies are made in health, education, governance, and the economy. However, with the passage of time, the share of the older population rises and that of the working age population begins to fall and hence the dividend is available for a period of time, ‘the window of demographic opportunity’. the realisation of the benefits of demographic dividend is not automatic. Without proper policies, the increase in the working-age population may lead to rising unemployment, fueling economic and social risks. This calls for forward-looking policies incorporating population dynamics, education and skills, healthcare, gender sensitivity, and providing rights and choices to the younger generation. [/su_spoiler] [su_spoiler open="no" title="Is India in a stage of reaping Demographic dividend?" style="fancy" icon="chevron"] India has the largest youth population in the world; around 66 per cent of the total population (more than 808 million) is below the age of 35. In 2020, the median age of the population in India was 28, compared to 37 in the US and China, and 49 in Japan. Japan reaped demographic dividend that lasted from 1964 to 2004. Since 2018, India’s working-age population (people between 15 and 64 years of age) has grown larger than the dependant population. This bulge in the working-age population is going to last till 2055. This transition happens largely because of a decrease in the total fertility rate (TFR, which is the number of births per woman) after the increase in life expectancy gets stabilised. A study on demographic dividend in India by United Nations Population Fund (UNFPA) throws up two interesting facts. The window of demographic dividend opportunity in India is available for five decades from 2005-06 to 2055-56, longer than any other country in the world. This demographic dividend window is available at different times in different states because of differential behaviour of the population parameters. With falling fertility (currently 2.0), rising median age (expected to be 36 years by 2036), a falling dependency ratio (expected to decrease from 65% to 54% in the coming decade taking 15-59 years as the working age population), India is in the middle of a demographic transition. This provides a window of opportunity towards faster economic growth. [/su_spoiler] [su_spoiler open="no" title="What are the advantages associated with Demographic Dividend?" style="fancy" icon="chevron"] Better economic growth brought about by increased economic activities due to higher working age population and lower dependent population. Demographic dividend has historically contributed up to 15 % of the overall growth in advanced economies. Productive Labour Force in future: The smaller share of children in the population enables higher investment per child. Therefore, the future entrants in the labour force can have better productivity and thus boost income. Increased fiscal space created by the demographic dividend to divert resources from spending on children to investing in physical and human infrastructure. Women Empowerment: Smaller numbers of children per household generally lead to more freedom for women to enter the formal workforce, which again can be a new source of growth. Increase in savings rate, as the working age also happens to be the prime period for saving. This will enable the economy to channelize the savings towards investments for expansion of economic activities thus creating a virtuous cycle. Rise of New Class: If demographic potential is effectively reaped there will be massive shift towards a middle-class society, that is, the rise of aspirational class. Rapid industrialisation and urbanisation because of higher number of employment seeking population that would force higher economic activities. Boost to Innovation & Entrepreneurial spirit: A large youth population can also be a source of entrepreneurship and innovation, as the young are known to be less risk-averse and more likely to break new ground. Therefore, in the tech era, when start-up enterprises are a catalyst for economic growth and jobs, having so many youngsters is a huge advantage. In India, we are already seeing the fruits of this through the upsurge in start-ups and the success of so many innovative ideas. [/su_spoiler] [su_spoiler open="no" title="What are the challenges associated with Demographic Dividend?" style="fancy" icon="chevron"] Rising Unemployment: The demographic dividend will be fully realized only if India is able to create gainful employment opportunities for this working-age population. However, due to external & internal factors, there is growth of joblessness that makes the potential of youth go waste. Lack of skills: Most of the new jobs that will be created in the future will be highly skilled and lack of skill in Indian workforce is a major challenge. India may not be able to take advantage of the opportunities, due to a low human capital base and lack of skills. Low human development parameters: India ranks 130 out of 189 countries in UNDP’s Human Development Index, which is alarming. Therefore, health and education parameters need to be improved substantially to make the Indian workforce efficient and skilled. Informal nature of economy in India is another hurdle in reaping the benefits of demographic transition in India. Regionally imbalanced demographic transition: The growth in the working-age ratio is likely to be concentrated in some of India’s poorest states. All but five states have a below-replacement-level Total Fertility rate (2.1), the figures for Uttar Pradesh and Bihar are yet as high as 2.35 and 3, respectively. Already, the lack of livelihoods in most of the eastern states has led to large-scale labour migration — first to farms in Punjab, and now to urban job hubs (Delhi/NCR, Mumbai, Bengaluru, etc.) [/su_spoiler] [su_spoiler open="no" title="What needs to be done to reap rich demographic dividends?" style="fancy" icon="chevron"] Job Creation: The nation needs to create ten million jobs per year to absorb the addition of young people into the workforce. Promoting businesses’ interests and entrepreneurship would help in job creation to provide employment to the large labour force. Skill development to increase employability of young population. India’s labour force needs to be empowered with the right skills for the modern economy. Government has established the National Skill Development Corporation (NSDC) with the overall target of skilling/ up skilling 500 million people in India by 2022. Updating National Transfer Accounts (NTA) assessment: India’s per capita consumption pattern is way lower than that of other Asian countries. A child in India consumes around 60% of the consumption by an adult aged between 20 and 64, while a child in China consumes about 85% of a prime-age adult’s consumption. The NTA data for India needs to be updated to capture the progress made on investments in education & health since 2011-12. State-specific NTAs need to be calculated every year and States need to be ranked for investing in the youth. Invest more in children and adolescents: India ranks poorly in Asia in terms of private and public human capital spending. It needs to invest more in children and adolescents, particularly in nutrition and learning during early childhood. Given that India’s workforce starts at a younger age, a greater focus needs to be on transitioning from secondary education to universal skilling and entrepreneurship, as done in South Korea. Health Investments: Health spending has not kept pace with India’s economic growth. The public spending on health has remained flat at around 1% of GDP. Evidence suggests that better health facilitates improved economic production. Hence, it is important to draft policies to promote health during the demographic dividend. Make reproductive healthcare services accessible on a rights-based approach: The unmet need for family planning in India at 9.4% as per the latest National Family Health Survey-5 (2019-21) is high as compared to 3.3% in China and 6.6% in South Korea, which needs to be bridged. Bridge Gender Inequality in Education: Education is an enabler to bridge gender differentials. The gender inequality of education is a concern. In India, boys are more likely to be enrolled in secondary and tertiary school than girls. In the Philippines, China and Thailand, it is the reverse. Increase female workforce participation: As of 2019, 20.3% of women were working or looking for work, down from 34.1% in 2003-04. New skills and opportunities for women and girls befitting their participation in a $3 trillion economy is urgently needed. She will need safe transport to travel to work. Finding work will likely delay her age of marriage and make her participate in the economy more productively, as also exercise her rights and choices. South Korea’s female workforce participation rate of 50% has been built on i) legally compulsory gender budgeting to analyse gender disaggregated data and its impact on policies, ii) increasing childcare benefits, and iii) boosting tax incentives for part-time work. Address the diversity between States: Southern States, which are advanced in demographic transition, already have a higher percentage of older people. However, eastern states are considered as reservoir of India’s workforce. Politics over migration has to be managed so that States work together on demographic transition. Urbanisation: The large young and working population in the years to come will migrate to urban areas within their own and other States, leading to rapid and large-scale increase in urban population. How these migrating people can have access to basic amenities, health and social services in urban areas need to be the focus of urban policy planning. Federal Cooperation: A new federal approach to governance reforms for demographic dividend will need to be put in place for policy coordination between States on various emerging population issues such as migration, ageing, skiling, female workforce participation and urbanisation. Inter-ministerial coordination for strategic planning, investment, monitoring and course correction should be an important feature of this governance arrangement. [/su_spoiler] Mains Practice Question - India is on the right side of demographic transition that provides golden opportunity for its rapid socio-economic development. What are the challenges associated with this transition? What measures needs to be taken to overcome those challenges? Note: Write answers to this question in the comment section. MIND MAP DOWNLOAD MIND MAP - CLICK HERE