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TLP Mains Answer Writing

SYNOPSIS [1st February,2021] Day 19: IASbaba’s TLP (Phase 1): UPSC Mains Answer Writing (General Studies)

For Previous TLP (ARCHIVES) - CLICK HERE   SYNOPSIS [1st February,2021] Day 19: IASbaba’s TLP (Phase 1): UPSC Mains Answer Writing (General Studies)   1. What is multilevel governance? Discuss. What are its benefits and limitations? Explain. Approach  Since question is asking you to explain so you have to give a clear account as to How/Why something happens. You are expected to clarify with relevant facts and implications. Introduction  In governance, vertical component includes central government, regional government, other local governments including provinces, districts, etc. Horizontal component of governance includes different ministries, different departments of regional governance. Body WHAT IS MULTILEVEL GOVERNANCE? DISCUSS? MLG is defined as “an arrangement for making binding decisions which engages a multiplicity of politically independent but otherwise interdependent actors – private and public –at different levels of territorial aggregation in more-or-less continuous negotiation /deliberation/implementation, and that does not assign exclusive policy competence or assert a stable hierarchy of political authority to any of these levels”. It can describe as "collective decision-making processes where authority and influence are shared between stakeholders operating at multiple levels of governance and in different policy sectors" BENEFITS OF MULTI-LEVEL GOVERNANCE (MLG) – Investing in MLG for smart specialisation strategies (S3) will be beneficial not only for S3, but also for a broad range of new-generation policies. It can "a permanent dialogue between various levels of government” and to extend partnership approaches to "national, local and regional authorities, to social partners and to stakeholders and civil society". It acts as "a system in which the responsibility for policy design and implementation is distributed between different levels of government and special-purpose local institutions (private associations, joint local authority bodies, cooperation across national borders, public-private partnerships and so on. MLG contributes to integrating the different policies, projects and proposals of different government tiers, so that each of them is considered in relation to one another and thus synergies among them can be created. LIMITATIONS OF MULTI-LEVEL GOVERNANCE – LACK OF TRADITION: The application of the partnership principle was hampered by a lack of tradition and experience of decentralization and collaborative policy-making, as well as a limited capacity of sub-national actors, especially in the New Member States.  LACK OF RESOURCES: A general criticism across all Member States is that the extent of involvement and influence of non-public sector bodies in OP decision-making processes remains limited due to a lack of resources, challenges which are compounded by the complexity of Cohesion Policy rules.  THE HIGH ADMINISTRATIVE COSTS OF MLG: The higher the number of actors involved, the more complex the administration behind policy development and implementation.  A DEMOCRATIC DEFICIT: Finally, another strand of the literature on MLG examines the democratic and legitimacy implications of Cohesion Policy implementation. It looks at the possibility that a top–down and technocratic model marginalises the role of democratic institutions. Conclusion MLG can be briefed as a complex process of collaboration among different levels of governments and public bodies with the aim of making Smart Specialisation Strategies available to other actors (explicitly targeting those actors from production and knowledge systems and communities) simultaneously on various levels. can help unlock the growth potential of the territories where it is implemented. The rationale behind this is that, inspired by place-based approaches, S3 strategies can be developed potentially everywhere, but that it is through the collaboration of different government levels that the specific potential of each place can be best known (those governments with contextual knowledge of each area) and enhanced (those governments with better knowledge of programmes and codified knowledge on S3). 2. Is the lack of finance the only impediment in the proper functioning of local bodies? Critically examine. Approach As the directive is critically examine the question demands a thorough explanation of the functioning of local bodies in the first part and then mention impediments in their functioning by giving a thorough analysis of the reasons hindering proper functioning, students are expected to provide a clear line of thought in explaining the reasons for the improper functioning of local bodies if lack of finances is the only reason or not. Introduction Local bodies are institutions of the local self-governance, which look after the administration of an area or small community such as villages, towns, or cities. The Local bodies in India are broadly classified into two categories. The local bodies constituted for local planning, development and administration in the rural areas are referred as Rural Local Bodies (Panchayats) and the local bodies, which are constituted for local planning, development and administration in the urban areas are referred as Urban Local Bodies (Municipalities).  Local Government is a State subject figuring as item 5 in List II of the Seventh Schedule to the Constitution of India. Article 243 G of the Indian Constitution enshrines the basic principle for devolution of power to the Local Bodies. In the nation's journey towards becoming an economic power, local bodies play an important part in enabling infrastructure availability to the citizens.  Body As the objective of the formation of local bodies was to ensure equitable and all-round development of urban and village areas, Finances play an important role in strengthening the local bodies to function as envisaged through 73rd and 74th constitutional amendments.  Proper revenue mechanism tends to make local bodies healthy and empowers local people as well. States were empowered to constitute Finance commission for the proper devolution of finances to the local bodies and were given freedom to act accordingly this created a gap in the actual devolution mechanism and local bodies are left with meagre resources to function effectively. After nearly 30 years of decentralisation, local government expenditure as a percentage of GDP is only two percent—a number that is extremely low when compared to other major emerging economies such as China (11 percent) and Brazil (seven percent). Most local bodies, both rural and urban are unable to generate adequate funds from their internal sources, and are therefore extremely dependent on external sources for funding. Studies show that around 80 percent to 95 percent of revenue is obtained from external sources, particularly state and central government loans and grants. There are two main reasons for low internal revenue collection – Local bodies lack the capacity to properly impose taxes, due to ambiguous taxation norms, lack of reliable records, and so on. State governments have not devolved enough taxation powers. Most states only permit local bodies to collect property taxes and water tariffs, but not land tax or tolls, which can provide more substantial revenues. A Devolution Report, published by the Ministry of Panchayati Raj in 2015-2016 estimates the extent to which states have devolved functions, finances, and functionaries. It concludes that while certain states such as Kerala, Karnataka, and Maharashtra have transferred relatively more power to local bodies, real decentralisation has a long way to go in India. However, there are other reasons which hinder the proper functioning local bodies such as – Functional issues- The power to devolve functions to local governments rests with the state government. For a variety of reasons, states do not devolve adequate functions to local government bodies, severely affecting the system’s efficiency and effectiveness. For instance, state governments have been known to create parallel structures for the implementation of projects around agriculture, health, and education—undermining areas for which local bodies are constitutionally responsible. Functionary issues- The capacity of local bodies to carry out their mandate is often circumscribed by the state government officials. Additionally, the secretariats of local governments are grossly under-staffed and under-skilled, and therefore unable to provide the required support to the elected body. Their capacities need to be further strengthened through training of existing personnel and the recruitment of new staff. Though local bodies are authorised to recruit staff, this is prevented by limited funding. Infrastructural Inadequacies in the local bodies posits other obstacles in their normal functioning. Most of the PRI aren’t housed in proper buildings which deter normal procedural meetings and therefore, hinder the democratic functioning.  State Election Commissions too haven’t been regular in conducting timely elections and also the interference from respective State Governments too seemingly creates functioning regarding consistency of these local bodies.  Excessive state control- the state governments have the power to supersede and dissolve municipal bodies under certain circumstances. Ineffective leadership- Mayors, councillors and sarpanch’s look at their positions as a stepping stone for their political career rather than being agents of change to bring out desired reforms. Creation of Parastatal agencies such as urban development authorities (which build infrastructure) and public corporations (which provide services such as water, electricity and transportation) are accountable only to the state governments, not the local government. Conclusion PRIs and ULBs are powerless without the devolution of functions and finances. They have been waiting for over two decades now to develop from merely constitutional and democratic institutions into governance institutions. A well-funded local government with clearly delineated functions is best positioned for all round and equitable development according to the needs and wishes of the local people. In its absence, India needs to rely on state and Union government measures, which tend to be of the one-size-fits-all sort. In the times of Covid-19 need of healthy and well-oiled local governance machinery is a bone and can be more effective in curbing pandemics at local level, instead of countrywide lockdown block and village level measures could have been more effective. An important lesson for the future is that states must devolve more functions and finances to local governments and build capacity so that real objectives of local bodies can be realised. 3. What is the role of the Finance Commission in strengthening the finances of local bodies? Discuss. What would you suggest to further empower local governance in India? Approach You need to elaborate upon the role of the Finance Commission and discuss its contribution in strengthening the finances of local bodies while in the second part, you need to suggest further ways to empower local governance in India. Introduction The Finance Commission is a constitutional body set up by the President of India, every five years or earlier to decide the share of the Union government and state governments in the divisible pool of tax revenue. The Finance Commission also decides the share of each state from the share of states in the divisible pool. The Commission further recommends the share of funds and grants to be transferred to local bodies. Body The Finance Commission is a constitutionally mandated body that decides the sharing of taxes between the Centre and the states. Article 280 (1) requires the President to constitute FC at the expiration of every fifth year or at such earlier time as the President considers necessary. The 73rd Constitutional Amendment requires both the Centre and states to help Panchayati Raj institutions to evolve as a unit of self-governance by assigning them funds, functions and functionaries. In this regard, the Tenth Finance Commission (FC-X) first made a provision for explicitly supporting local bodies through grants. The Finance Commission Grants play an important role in strengthening the finances of local bodies, these are primarily divided into four sub-heads – Grants for rural local bodies:  The Finance Commission recommendations ensure that these local bodies are adequately funded. In fact, nearly half of the Finance Commission Grants in Union Budget goes to village local bodies. Grants for urban local bodies: Urban local bodies like municipal councils receive the largest chunk of Finance Commission Grants after Rural Local Bodies and Post Devolution Deficit Grants to states. Assistance to SDRF: The central government also provides funds to State Disaster Relief Funds in addition to funding the National Disaster Management Authority (NDMA).  Post devolution revenue deficit grants: The Finance Commission also provides a mechanism for compensation of any loss incurred by states, which is called post-devolution revenue deficit grants. Further, the 15th Finance Commission has made various efforts towards strengthening the finances of local bodies, some of which include – To account for increasing urbanization the share of urban local bodies in Finance Commission grants to local bodies should be gradually increased to 40 per cent over the medium term. To provide for tied grants in the critical sectors of sanitation and drinking water to ensure additional funds to the local bodies over and above the funds allocated for these purposes under the centrally sponsored schemes (CSS), Swachh Bharat and Jal Jeevan Missions. To recommend grants to all tiers of the Panchayati Raj to enable pooling of resources to create durable community assets and improve their functional viability. Also, to give grants to the Fifth and Sixth Schedule areas and Cantonment Boards. Since larger cities will tend to grow faster with the agglomeration effect, the fifty Million-Plus cities in the country need differentiated treatment, with special emphasis on meeting the challenges of bad ambient air quality, groundwater depletion and sanitation. The 15th Finance Commission has also recommended a total of Rs 90,000 crore for grants to the local bodies in 2020-21.  This amounts to an increase over the Rs 87,352 crore allocated for 2019-20 for the same.  The new allocation is 4.31% of the divisible pool.  Of this sum, Rs 60,750 crore has been recommended for rural local bodies, and Rs 29,250 crore for urban local bodies.  These grants will be made available to all three tiers of Panchayat- village, block, and district. India’s burgeoning population and rising aspirations of youth necessitates need for further measures to empower local bodies. In this regard, some of the following measures can be considered – Creating networks of Panchayati Raj Institutions and local government elected representatives physical and virtual, and extending these networks to international networks over a period of time.  Increased Allocations to Local Governments and to ULBs: “In comparison with 2.1 per cent of GDP in Denmark, 6.0 per cent Norway, 7.8 per cent in Italy, and 9.9 per cent in United Kingdom, intergovernmental transfers to ULBs account for a meagre 0.45 per cent of GDP in India. Providing a platform for knowledge management in the PR and local governance space including collation and dissemination of a body of knowledge including best practices/innovations/case studies.  Need for Compensation for Municipal Revenue Losses Due to GST: Cities do not benefit from their economic vibrancy as all the buoyant local taxes such as the octroi, entry tax, and local body tax have been abolished to make way for Goods & Services Tax. Developing a basket of performance measures for PR and local governance, collating reliable statistical data on PRIs and local self-government bodies Need to Incentivise States to Improve Performance of State Finance Commissions (SFCs): Only 13 states have constituted their 5th State Finance Commissions (SFC). A recent report from the NIPFP shows that SFCs have been hampered by inadequate data as well as lack of staff and even places to operate. It highlights that many states have not appointed the SFCs in time and have not provided adequate support. Strengthening the Trust Based Approach for ULBs: The 14th FC had recognised the need to trust and respect local bodies as institutions of local self-government. Policy and action research on issues such as devolution of 3Fs, socio-political impact of their performance, practices for conflict management on governance issues etc.  Conclusion Since ULBs are at heart of delivery of goods and services to people, it is imperative to strengthen them by greater decentralisation and empower them by meaningful devolution of the 3Fs i.e. funds, functions and functionaries to ensure the transformation from “Swarajya to Surajya" in the context of goals of ‘New India’. 4. What are India’s immediate challenges in its dealings with countries like Myanmar and Bangladesh? Analyse. Approach Students are expected to write and analyse what are the challenges in dealing with countries like Myanmar and Bangladesh.  Introduction Being the countries that sits at the intersection of India’s “Neighborhood First” policy and its “Act East” policy, Myanmar and Bangladesh are an essential element in India’s practice of regional diplomacy in the Indo-Pacific, and serves as a land bridge to connect South Asia and Southeast Asia. Body India’s immediate challenges while dealing with Bangladesh and Myanmar – Security challenges: India has been concerned over some militant groups like the United National Liberation Front (UNLF) and National Democratic Front of Bodoland (NDFB) from the North-East region taking shelter in Myanmar.  Myanmar handed over 22 cadres of Indian insurgent groups in May 2020. The maintenance of security and stability in their border areas and mutual commitment not to allow their respective territories to be used for activities inimical to each other were re-stressed is the challenge for Indian foreign policy. The other big security concern for India is that Bangladesh should not turn into the frontline of radical terror in the southeast. Bangladesh could turn into a launchpad for religious radical terror activities in India. Handling Rohingya Issue: India maintains that Rohingyas are a threat to its national security and have links with international terror groups. India has so far refused to exert any pressure on Myanmar for taking the Rohingyas back and giving them recognition as the citizens of Myanmar. The Rohingya issue and India’s remarks in 2017 on the issue have been upsetting for Bangladesh which has been facing the challenge of providing shelter to more than a million refugees fleeing persecution. Repatriation of illegal migrants: The National Register of Citizens (NRC) has left out 1.9 million Assamese from the list with a group labelled as “illegal immigrants from Bangladesh” living in Assam post-1971. India plans to seek their repatriation to Bangladesh. Bangladesh remains firm in its stance that no migrants travelled to Assam illegally during the 1971 war of independence and that the controversial NRC risks hurting relations. To control Chinese factor: Currently, Bangladesh is an active partner of the Belt and Road Initiative (BRI) that Delhi has not signed up to. In the security sector, Bangladesh is also a major recipient of Chinese military inventory, including submarines. The last thing Delhi policymakers would want is a failed Myanmar state at India’s doorstep and a weakened Myanmar falling into the clutches of China as a satellite state, thereby being pressured to do Beijing’s bidding in regional affairs. Without colliding head-on with China, Delhi scours for ways to outsmart Beijing so that the balance of power in mainland Southeast Asia is tilted in favor of India. India’s long-term strategic goal is to create a Special Economic Zone surrounding the Sittwe port, and in so doing, cement India’s footprint in Rakhine and boost its presence in the Bay of Bengal. The Sittwe port is meant to be India’s answer to the Chinese-fronted Kyaukpyu port, which is intended to cement China’s geostrategic footprint in Rakhine. Border management: It is considered to be one of the losses for India of losing its indigenous variety and trade. Cattle haats along the India-Bangladesh border are becoming a source of cattle for smuggling. Dumping of Fake Indian Currency Notes, recently several duplicate notes have been found along the border, which cripple the Indian Economy severely. Anti-Indian sentiments:  Anti-Indian sentiments are getting rooted in the minds of people of region due to perceived notion of India’s big brother attitude and its economic dependence to India. Influence of Domestic Politics:  India’s domestic politics always had an impact on our regional policy. The same is true of our neighbours like Bangladesh and Myanmar   whose domestic politics impact their engagement with India. For example: West-Bengal’s Chief Minister pulled out of the Teesta Waters agreement between India and Bangladesh. Improving Regional Connectivity:  India’s economic reorientation since 1991 and the rediscovery of regionalism did open possibilities for reconnecting with its neighbours. Thus, connectivity must be pursued with greater vigour while security concerns are addressed through cost-effective, efficient and reliable technological measures which are in use in other parts of the world. For example: India and Bangladesh have signed several pacts, so India can actually send goods and passengers over land across Bangladesh, connecting Bengal to Tripura. India, Myanmar, and Thailand are building the Asian Trilateral Highway and Kaladan Multi-Modal Transit Transport. Arakan Army rebels on the one hand, and on the other, the Arakan Rohingya Salvation Army. Also Insurgents from India’s Nagaland have also disrupted the completion of the KMMTT project. Conclusion There is no doubt that the challenges which India must deal with in its neighbourhood will become more complex and even threatening compared to two decades ago. But neighbourhood first policy must be anchored in the sustained engagement at all levels of the political and people to people levels, building upon the deep cultural affinities which are unique to India’s relations with its neighbours. 5. What are your expectations with today’s budget? Please outline five areas where you would like to see some intervention. Approach  Candidate is required to understand the importance of this year’s budget. A broad theme of expectations can be outlined in first part of body and then major five areas can be stated, that should be priority of government for spending. Answer can be concluded with similar historic budgets of the past with a way forward. Introduction  Budget of 2021 is historic is several sense. We have witnessed once in a century slowdown and an urgent economic intervention with a lightning reforms is expected to revive economy. GDP fell sharply when lockdowns restricted activities, and has bounced back once lockdowns were lifted, particularly as the infection-fatality rate of coronavirus in India has turned out to be much lower than feared earlier. Hence a budget for already thriving economy is expected.  Body  Providing impetus to investment and spending The pandemic has adversely hit the savings and consumption in the economy. To boost consumption the government may consider a one-time tax deduction for all individual taxpayers in respect of expenditure incurred by them on travel & stay in India, purchase of electronics, white goods, and vehicles, that are manufactured in India. This would help provide impetus to the ailing hospitality industry and give boost to make in India. Healthcare After the pandemic-hit year, India’s healthcare sector is looking for holistic reforms like reduction in taxes on healthcare and treatment besides higher budgetary allocation. Better allocation for pharma research is also on the cards. Defence The government’s defence spending got a boost last year in the wake of the conflict with China at the Ladakh border. The government is likely to announce higher budget allocation for the defence sector, with focus on indigenous procurement and R&D. Increase in government spending This Budget is also likely to see increase in government spending on infrastructure, both urban and rural. Not only will this help generate employment for people who have lost their livelihoods due to the pandemic, particularly the unskilled and semi-skilled workers, but would help rekindle both rural and urban demand. This is extremely important for India Incentivizing the employment creators (start-ups) Indian Start-up eco-system, though still developing, has been instrumental in creating 21 unicorns valued at USD 73.2 billion and it is expected that more than 50 start-ups might join the unicorn club as early as 2022. They are going to be an important part of the vision of "local to global". Education Sector There has been a paradigm shift in the mode of learning and teaching method and also in the meanwhile of challenging pandemic there has been approval of The National Education Policy (NEP) by the Union Cabinet. technology in Education, guidelines for NEP implementation, Rural education, Primary Education considering health of students along with their ability to pay tuition fees are important factors.  Incentives to promote ease of doing business Among the chosen 190 countries, India ranked 63rd in Doing Business 2020 from 142nd in 2014 as per the World Bank Report. The Indian government envisions to take the country to the top 50 in the global Ease of Doing Business rankings. Agriculture  The government may increase its overall agriculture expenditure to pacify farmers protesting against its farm laws. Steps are also expected for expansion of warehousing and storage capacities. Railways Privatisation of trains and infrastructure development remain top priorities for the Indian Railways. While budget allocation may see only a marginal rise, measures may be announced for better public-private partnership (PPP) in passenger train operations. Conclusion  There is no denying that the economy is facing trying times and it may not be easy for the government to provide "please all solutions". However, with the receptiveness shown in hearing out all stakeholders concerns, we can expect that Budget 2021 to be a reformist one that will place the economy firmly on a high growth trajectory. TLP HOT Synopsis Day 19 PDF

IASbaba's Daily Current Affairs

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 1st February 2021

Archives (PRELIMS + MAINS FOCUS) Pulse Polio Programme For 2021 Part of: GS Prelims and GS- II – Health In news  President of India launched the Pulse Polio Programme for 2021 by administering polio drops to children less than five years old at the Rashtrapati Bhawan. Key takeaways The drops were on the eve of the Polio National Immunization Day, observed on the 31st January 2021, popularly known as Polio Ravivar. Around 17 crore children of less than 5 years of age will be given polio drops as part of the drive of the Government of India to sustain the polio-free status of the country. The strategy of the Pulse Polio Immunization Programme was conceived in December 1993 and it was rolled out from 2nd October 1994 when the first child was immunized against Polio as part of this program. The last case of Polio in India was reported in Howrah on 13th January 2011. India has been free of Polio for a decade now. Do you know? Polio-free certification’ of the entire South-East Asia Region of WHO including India on the 27th of March 2014 was a huge accomplishment in the history of India and Global Public Health. Related articles: Polio Disease: Click here Examining Polio’s success for other diseases: Click here Economic Survey 2020-21: Pradhan Mantri Jan Arogya Yojana (PMJAY) Part of: GS Prelims and GS- II – Health In news  Key Finding of Economic Survey 2020-21 Reveals Strong Positive Impact of Pradhan Mantri Jan Arogya Yojana (PMJAY) on Health Outcomes. Observations by the Survey: The proportion of households with any usual member covered under health insurance or financing scheme increased by 54% from NFHS 4 to NFHS 5 in the states that adopted PMJAY. It decreased by 10% in the states that did not adopt PMJAY. The proportion reflects the success of PMJAY in enhancing health insurance coverage. The reduction in Infant Mortality Rate (IMR) was 20% compared to 12% in PMJAY and non-PMJAY states respectively.  The proportion of people ensuring family planning rose across all the states between the two surveys. The increase is much more significant in the states that adopted PM-JAY indicating its effectiveness. The proportion of women with total unmet family planning needs decreased by 31% in the PMJAY states. The decline in the non-PMJAY states was merely 10%. Related articles: Pradhan Mantri Jan Arogya Yojana: Click here Economic Survey 2020-21: Employment Part of: GS Prelims and GS- III – Employment In news  The Economic Survey 2020-21 states that the years 2019 and 2020 are landmark years in the history of labor reforms. Key takeaways The country saw nearly 29 Central Labour laws being amalgamated, rationalized, and simplified into four labor codes viz.: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020 COVID-19 has exposed the vulnerability of urban casual workers, who account for 11.2% of the urban workforce (All-India) as per Periodic Labour Force Survey (PLFS), January-March, 2020. Industry-wise estimates on workforce show that 'Agriculture' is still the largest employer with 42.5% of the workforce. The next important industry is ‘other services’ where 13.8% were engaged. Economic Survey 2020-21: Aatmanirbhar Bharat Rojgar Yojana (ABRY) Part of: GS Prelims and GS- III – Economy In news  The Economic Survey says that ABRY, a component of the Aatmanirbhar Bharat package announced in November 2020 has a total estimated outlay of Rs 22,810 crore for the scheme period i.e., up to wage month 31st May 2023. The scheme proposes to pay: Entire employees’ and employers’ contribution i.e. 24% of wages towards EPF in respect of new employees in establishments employing up to 1000 employees during the period from October 2020 to June 2021 and also to re-employ who lost their jobs due to COVID-19. Only employees' share of EPF contribution (i.e. 12 percent) of wages in respect of new employees in establishments employing more than 1000 employees during the period from October 2020 to June 2021, and also to re-employees who lost their jobs due to COVID-19. To provide relief to the organized sector employees, a notification issued on 28th March 2020 by the Government provisioning a non-refundable advance of 75 percent of the outstanding balance or 3 months’ wages whichever is lower, allowed to the members of EPFO. Under Prime Minister’s Garib Kalyan Package (PMGKP) financial assistance was given to building & other construction workers (BOCW) which largely included migrant workers from the funds collected under BOCW’s cess. Economic Survey 2020-21: Banking Sector Part of: GS Prelims and GS- III – Economy In news  According to Economic Survey 2020-21, the Gross Non-Performing Assets ratio of Scheduled Commercial Banks decreased from 8.21% at the end of March 2020 to 7.49% at the end of September 2020. Key takeaways This has to be seen in conjunction with the asset classification relief provided to borrowers on account of the pandemic, says the Economic Survey. Further, the Capital to risk-weighted asset ratio of Scheduled Commercial Banks increased from 14.7% to 15.8% between March 2020 and September 2020 with improvement in both Public and Private sector banks. The recovery rate for the Scheduled Commercial Banks through Insolvency & Bankruptcy code-IBC (since its inception) has been over 45% Due to the pandemic, the initiation of the Corporate Insolvency Resolution Process (CIRP) was suspended for any default.  The suspension along with continued clearance has allowed a small decline in accumulated cases. The financial flows to the real economy remained constrained on account of subdued credit growth by both banks and Non-Banking Financial Corporations. The credit growth of banks slowed down to 6.7% as of January 1, 2021.  Miscellaneous Lower Arun Hydroelectric Project The government of Nepal has allotted the 679 MW Lower Arun Hydro Electric Project in Nepal to SJVN – the largest Indian Hydroelectric company through competitive bidding. The Lower Arun Hydro Electric Project is located in Sankhuwasabha and Bhojpur Districts of Nepal. The Projects being developed by SJVN in Nepal would result in the overall development and boost mutual economic growth in India & Nepal. (Mains Focus) ECONOMY/ GOVERNANCE Topic: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.  Green Tax on Vehicle owners Context: Union Transport Minister announced approval of a ‘green tax’ on vehicles of specified vintage, as a means of dissuading people from using polluting vehicles. What are the major features of the measure? Additional Road Tax on Older Vehicles: Among the major features of the measure is a 10%-25% additional green tax on the road tax payable by commercial transport vehicles that are older than eight years at the time of fitness certification renewal, and for personal vehicles after 15 years.  Exemptions: The policy provides exemptions for tractors, harvesters and tillers used in farms, hybrid, electric, ethanol, liquefied petroleum gas (LPG) and compressed natural gas (CNG)-powered vehicles. Incentivising Mass Transport: The policy proposes lower green tax for public transport vehicles such as buses. Vehicles in Polluted Cities: A higher additional 50% of road tax is proposed for vehicles in highly polluted cities, as well as differential tax based on fuel and vehicle type, such as diesel.  Older Government Vehicles: Vehicles of government departments and public sector units that are older than 15 years are to be deregistered and scrapped.  Separate Fund: Green tax funds are to be kept in a separate account to help States measure pollution and tackle it The policy is scheduled to come into force on April 1, 2022 Does scrapping old vehicles carry big benefits? Benefits Automobile Sector: Scrapping of old vehicles give a boost to the automobile industry and related businesses by stimulating demand, and lead to recovery of steel, aluminium, plastic and so on for recycling, on the other.  Environment Friendly: Newer vehicles conforming to stricter emissions and fuel efficiency standards are more environment-friendly, and have modern safety features.  Precedence by other countries: Globally, accelerated vehicle replacement schemes have been used in several countries. The most notable were those in Europe, besides the high-profile, $3 billion “Cash for Clunkers” or CARS (or Car Allowance Rebate System) programme in the U.S. after the 2008 recession.  Higher Efficiency Norms reduced fuel usage: The benefits from vehicle replacements can be gauged from Transport Ministry data: commercial vehicles making up 5% of the vehicle fleet but contribute an estimated 65-70% of total vehicular pollution. The BEE estimates that higher efficiency norms could result in a fuel use reduction of 22.97 million tons by 2025 in India. Is the proposed policy for scrappage workable? In 2015 during drafting stages, Transport Minister Mr. Gadkari said the idea was to give a certificate to owners selling off old vehicles of specified age, which could be redeemed for a discount of ₹30,000 to ₹50,000 for new passenger vehicles.  For a commercial vehicle, the benefits including taxes would be an estimated ₹1.5 lakh. This idea did not progress, however, and among those who expressed reservations on high costs was NITI Aayog.  The Aayog was concerned that some sections may not be in a position to retire old vehicles because of the high capital cost.  The proposals in earlier drafts also envisaged tax discounts for those who exchanged old motors for new ones.  The present initiative, however, has the limited objective of nudging the owners of older vehicles to sell them off rather than pay a green tax penalty.  Without sufficient incentive or penalty, and careful targeting of vehicles with knowledge of their condition, a tax penalty could be less of a disincentive to commercial vehicle owners, since the tax would be far lower than its resale value and earnings potential; there would be no compulsion to retire it.  Continued operation of the vehicles would defeat the clean air objective and bring no cheer to the automobile industry What are the options available to tweak the policy? For a clean-up, commercial transport vehicles are of highest concern: on fuel efficiency, emissions and safety.  The Centre could offer a green new deal with financial options such as loans and grants to smaller operators to scrap their junk vehicles, while escalating the green tax annually to achieve the nudge effect.  A second stimulus to bus companies could help green the fleet and cut pollution. Small operators such as autorickshaws could be offered low-interest loans, particularly to move to electric vehicles. Connecting the dots: Carbon Cess (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Correct answers of today’s questions will be provided in next day’s DNA section. Kindly refer to it and update your answers.  Comments Up-voted by IASbaba are also the “correct answers”. Q.1 Which of the following country/countries is/are polio endemic? Nigeria Pakistan Afghanistan India Select the correct code: 1, 2 and 3 only 2 and 3 only 1 and 4 only 1 only Q.2 Consider the following statements: The reduction in Infant Mortality Rate (IMR) is more in states that adopted PM Jan Aarogya Yojana than the ones who did not adopt it. The infant mortality rate is the number of infant deaths for every 100 live births. Which of the above is/are correct? 1 only 2only Both 1 and 2 Neither 1 nor 2 Q.3 Consider the following statements regarding Aatmanirbhar Bharat Rojgar Yojana (ABRY): Entire employees’ and employers’ contribution of 24% of wages towards EPF in respect of new employees in establishments employing more than 1000 employees. Only employees' share of EPF contribution of 12% of wages in respect of new employees in establishments employing upto 1000 employees. Which of the above is/are correct? 1 only 2only Both 1 and 2 Neither 1 nor 2 ANSWERS FOR 30th January 2021 TEST YOUR KNOWLEDGE (TYK) 1 D 2 D 3 C Must Read On Economic Survey 2021: The Hindu About building a robust healthcare system: The Hindu About 15th Finance Commission final report’s impact for cities: The Indian Express

PIB

PRESS INFORMATION BUREAU (PIB) IAS UPSC – 25th January to 31st January – 2021

Press Information Bureau (PIB) IAS UPSC – 25th to 31st January, 2021 ARCHIVES GS-2 National Baseline Geoscience Data Generation Programmes To expedite exploration activities in the country, Geological Survey of India (GSI), has embarked upon an ambitious scheme to complete some major National level surveys by 2024:  National Geochemical Mapping (NGCM): It is an all India programme to cover the entire surface area of the country by geochemical sampling. The NGCM work will generate distribution pattern of 62 elements (samples collected at 1km x 1km grid) for use in managing and developing natural resources; for application in environmental, agricultural, human health, other social concerns and to search for hidden mineral deposits. National Geophysical Mapping (NGPM): The anomaly maps derived from the processed gravity and magnetic data provides all stakeholders a framework to design exploration strategies. National Aero Geophysical Mapping Program (NAGMP): First of its kind project in the country, its objectives are to delineate concealed, deep seated structure/ litho-units capable of hosting mineralization, delineate extension of the existing mineralized zone and understating of shallow crustal architecture in the context of mineral occurrence. It is for the first time that the multi-sensor aero-geophysical surveys (magnetic gradiometry and spectrometric) are being carried out by adopting such large regional scale survey parameters of 300 m traverse line spacing with aircraft flown at 80 m above ground level. GSI is also going to adopt sophisticated deep penetration geophysical techniques such as Magneto-Telluric Surveys and Deep Seismic Reflection Surveys (DSRS) in order to define the crustal architecture for deep seated mineral targeting. GSI has also initiated its flagship initiative of National Geoscience Data Repository (NGDR) for collation of all the geoscience data of the country involving GSI, other national organizations with geoscience as a focused activities, all the state directorate of mines and geology, the academia engaged in research and development in the domain, the CPSEs engaged in exploration and geoscientific pursuits, and private sector agencies working in the domain. It aims at integrating the collected data by GSI and the similar organizations to build a repository on the digital medium entailing multiple user access.  Significance of these Programmes: The collation, assimilation and integration of the data generated from the above projects and further interpretation will lead to identification of more areas for mineral exploration in the country.  The increased investment in mineral exploration will build a robust pipeline of prospective mineral blocks for auction. This will ensure long-term viability and continuity of mining in the country taking India towards the cherished goal of ‘Atmanirbhar Bharat’.  The data generated through this mapping activity has helped to build up the knowledge database for National Geo-scientific information, which helps in boosting mineral exploration activities, and other earth science related socio-economic activities and programmes.   Nation celebrates 11th National Voters’ Day (Topic: Elections) National Voters' Day is celebrated all across the country on January 25 every year since 2011, to mark the foundation day of the Election Commission of India, i.e. 25th January 1950. The main purpose of the National Voters Day celebration is to encourage, facilitate and maximize enrolment, especially for new voters. Theme: ''Making Our Voters Empowered, Vigilant, Safe and Informed" Background Election Commission of India is a Constitutional Body created under Article 324 of the Constitution of India.  The first Chief Election Commissioner was appointed on 21st March 1950. Since its creation, the Commission was a single member body except for a brief period from 16th October 1989 to 1st January 1990 when it was converted into a three member body.  Subsequently, since 1st October 1993, the Commission has been a three-member body, consisting of the Chief Election Commissioner and two Election Commissioners. The National Voters’ Day celebration was initiated in India in 2011 by the then-President of India, Pratibha Devi Patil, on the 61st foundation day of Election Commission of India. The Constitution (Sixty-First Amendment) Act, 1988 had lowered the threshold voting age from 21 years to 18 years. Launch of  Election Commission of India’s Web Radio: ‘Hello Voters’ – an online digital radio service.  e-EPIC (Electronic Electoral Photo Identity Card) programme: The e-EPIC is a non-editable secure portable document format (PDF) version of the EPIC (approx. 250 KB) which can be downloaded on mobile or in a self-printable form on the computer. A voter can thus store the card on his mobile, upload it on Digi locker or print it and self-laminate it. This is in addition to physical IDs known as PVC EPIC being issued for fresh registration.  The e-EPIC will also have a secured QR code with the serial number, part number, date of poll, etc along with the image of the voter for identification. The e-EPIC initiative would be launched in two phases:- First phase- It will start from From January 25 to 31. Only new voters can apply for the voter-ID card and register their mobile numbers in Form-6 to download the e-EPIC by authenticating their mobile number. The mobile numbers should be unique and not be previously registered.  Second phase- It will start from February 1 and will be open for the general voters. People who have given their mobile numbers (linked one) they can also download their e-EPIC. India signs Strategic Partnership Agreement with International Energy Agency (IEA) (Topic: India and International organisations) The Framework for Strategic Partnership between the International Energy Agency (IEA) members and the Government of India was signed on 27th January, 2021. Aim: To strengthen mutual trust and cooperation & enhance global energy security, stability and sustainability. This partnership will lead to an extensive exchange of knowledge and would be a stepping stone towards India becoming a full member of the IEA. The contents of the Strategic partnership will be jointly decided by the IEA Members and India, including  A phased increase in benefits and responsibilities for India as an IEA Strategic partner Building on existing areas of work within Association and the Clean Energy Transitions Programme (CETP), such as Energy Security, Clean & Sustainable Energy, Energy Efficiency, Enhancing petroleum storage capacity in India, Expansion of gas-based economy in India etc. The IEA Secretariat will be responsible for implementation of the cooperative activities in India and for facilitating discussion between the IEA Members and India to further develop the Strategic Partnership. World Economic Forum’s Davos Dialogue – Key Highlights (Topic: India and International organisations) Effective containment of Corona in India has saved the humanity from a very big tragedy - India moved forward with proactive and pro-participation approach and worked on strengthening the COVID specific health infrastructure, trained its human resource to tackle the pandemic and used technology massively in testing and tracking of the cases. Aatamnirbhar Bharat movement is committed to global good and global supply chain - India has maintained economic activity by starting infrastructure projects worth billions of rupees and initiating special schemes for employment. Earlier we focused on saving lives now everyone is focussed on the growth of the country. India’s ambition of self-reliance will strengthen globalism anew and will help in Industry 4.0, India offers a predictable and friendly environment from tax regime to FDI norms Country’s digital profile has been completely transformed - India is working on all the four factors of Industry 4.0- connectivity, automation, artificial intelligence or machine learning and real-time data. India is among the countries where data charges are the cheapest and mobile connectivity and smart phones have reached far and wide. India’s automation design expert pool is vast and the country has made a mark in the field of AI and machine learning. Growing digital infrastructure has made digital solutions everyday part of life in India. Digital Infrastructure has made public service delivery efficient and transparent. India has started a campaign for providing easy access to health care by giving Unique Health ID to its citizens India is focussing on sustainable urbanization with focus on ease of living, ease of doing business and climate sensitive development - This commitment has led to investment of 150 billion dollars were invested in urban India during 2014 to 2020. Agreement for financial support to STARS project signed between DEA and World Bank (Topic: India and International organisations) Agreement for the financial support of the implementation of Strengthening Teaching-Learning and Results for States (STARS) project of Ministry of Education was signed between Department of Economic Affairs (DEA) and World Bank along with Ministry of Education. The total project cost of STARS project is Rs 5718 crore with the financial support of World Bank amounting to US $ 500 million (approximately Rs. 3700 crore) and rest coming as State share from the participating States, over a period of 5 years. The project covers 6 States viz Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha. The identified States will be supported for various interventions for improving the quality of education. The Program envisions improving the overall monitoring and measurement activities in the Indian school education system through interventions in selected states.  STARS will draw on existing structure under Samagra Shiksha with the DoSEL, MoE as the main implementing agency at the national level.  At the State level, the project will be implemented through the integrated State Implementation Society (SIS) for Samagra Shiksha. The proposed World Bank support under STARS is primarily in the form of a results-based financing instrument called Program for Results (PforR). This will ensure major reforms at the State level through a set of disbursement-linked indicators (DLIs).  A State Incentive Grant (SIG) will be used to encourage States to meet desired project outcomes. The SIG matrix has been aligned with the intermediate outcome indicators as per the requirement of PforR instrument.  An independent Verification agency (IVA) will verify each result before disbursement of funds. STARS project will be instrumental in the implementation of various recommendations of National Education Policy 2020 i.e.  Strengthening Early Childhood Education and Foundational Learning Improving Learning Assessment System ICT-enabled approaches in education Teachers Development Vocational education etc. GS-3 Climate Adaptation Summit 2021 (Topic: Environment, Climate change) Initiatives undertaken Targeting 450 gigawatt of renewable energy capacity by 2030 Promoting LED lights and saving 38 million tons of carbon-di-oxide emissions annually Restore 26 million hectares of degraded land by 2030 Providing clean cooking fuel to 80 million rural households Connecting 64 million households to piped water supply The International Solar Alliance and the Coalition for Disaster Resilient Infrastructure show the power of global climate partnership. Solar bank plan in India The steering committee of the International Solar Alliance (ISA) is set to meet shortly to clear the decks for the World Solar Bank (WSB), which is expected to be headquartered in India. The country may become its lead member by taking a 30% stake in it through a $600 million equity commitment. This would be the first multilateral development bank (MDB) headquartered in India and comes even as Beijing has taken the lead in creating the Asian Infrastructure Investment Bank and the New Development Bank (NDB). PM Modi said in his address, "We have promised ourselves that: We will not just meet our Paris Agreement targets, but exceed them; We will not just arrest environmental degradation but reverse it; and, We will not just create new capacities but make them an agent for global good." 2021: Year of Indo-French alliance towards a Greener Planet (Topic: Environment, Climate change) Objective: To strengthen Indo-French cooperation in sustainable development, increase the effectiveness of actions in favor of global environment protection and give them greater visibility. India has made significant progress towards climate change action & has already achieved 26% of reduction of emission intensity. As of 2020 the renewable capacity in India stands at 90 GW which includes 36 GW of solar energy & 38 GW of wind energy. India looks forward to strengthen the Indo-French cooperation in sustainable development, increase the effectiveness of actions in favor of the global environment protection and give them greater visibility. The Indo-French Year of the Environment over the period 2021-2022 would be based on five main themes:  Environmental protection Climate change Biodiversity conservation Sustainable urban development Development of renewable energies and energy efficiency It is also a platform for engaging in discussions on critical areas of collaboration relating to environment and allied areas. Green tax to be imposed on older vehicles soon (Topic: Environment, Climate change) Approval has been granted to the proposal to levy a “Green Tax” on old vehicles which are polluting the environment. The proposal will now go to the states for consultation before it is formally notified.   Main principles to be followed while levying the Green Tax are: Transport vehicles older than 8 years could be charged Green Tax at the time of renewal of fitness certificate, at the rate of 10 to 25 % of road tax; Personal vehicles to be charged Green Tax at the time of renewal of Registration Certification after 15 years; Public transport vehicles, such as city buses, to be charged lower Green tax; Higher Green tax (50% of Road Tax) for vehicles being registered in highly polluted cities Differential tax, depending on fuel (petrol/diesel) and type of vehicle; Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc., to be exempted; Vehicles used in farming, such as tractor, harvestor, tiller etc., to be exempted; Revenue collected from the Green Tax to be kept in a separate account and used for tackling pollution, and for States to set up state of-art facilities for emission monitoring Benefits of the “Green Tax”: To dissuade people from using vehicles which damage the environment To motivate people to switch to newer, less polluting vehicles Green tax will reduce the pollution level, and make the polluter pay for pollution. Approval has also been granted on the policy of deregistration and scrapping of vehicles owned by Government department and PSU, which are above 15 years in age. It is to be notified, and will come into effect from 1st April, 2022. It is estimated that commercial vehicles, which constitute about 5% of the total vehicle fleet , contribute about 65-70% of total vehicular pollution. The older fleet, typically manufactured before the year 2000 constitute less that 1 % of the total fleet but contributes around 15% of total vehicular pollution. These older vehicles pollute 10-25 times more than modern vehicles. Launch of National Marine Turtle Action Plan (Topic: Biodiversity, Conservation) Objective: To have a conservation paradigm for marine mega fauna and marine turtles Despite the immense economic, ecological and cultural values of marine habitats in India, marine mega fauna species and marine turtles face a wide variety of challenges including stranding and entanglement. Managing such challenging situations requires coordination, action and people’s participation which would help in the long-term conservation of marine species and their habitats. Discusses ways and means  to not only promote inter-sectoral action for conservation but also guide improved coordination amongst the government, civil society and all relevant stakeholders on the response to cases of stranding, entanglement, injury or mortality of marine mammals and also conservation of marine turtles. Actions to be taken for handling stranded animals on shore, stranded or entangled animals in the sea or on a boat, management actions for improved coordination, reducing threats to marine species and their habitats, rehabilitation of degraded habitats, enhancing people’s participation, advance scientific research and exchange of information on marine mammals and marine turtles and their habitats. Significance India has rich marine biodiversity along a vast coastline of over 7,500 km. From colorful fish, sharks, including Whale Sharks, turtles and big mammals like whales, dolphins and dugongs to bright corals, marine habitats not only harbor diverse species but also provide resources essential for human wellbeing. Millions of people depend on these resources ranging from maritime trade and transport, food, mineral resources, cultural traditions, spiritual values and inspiration that draws tourists from around the world. Successful Maiden Test Launch of Akash-NG Missile (Topic: Defence Technology) DRDO conducted the successful maiden launch of Akash-NG (New Generation) Missile from Integrated Test Range off the coast of Odisha. Akash-NG is a new generation Surface to Air Missile meant for use by Indian Air Force with an aim of intercepting high maneuvering low RCS aerial threats. The Akash-NG system has been developed with better deployability compared to other similar systems with canisterized launcher and much smaller ground system footprint. Prelims-oriented News PRAGATI PRAGATI is the multimodal platform for Pro-Active Governance and Timely Implementation involving central and state governments. It enables the PM to discuss the issues with the concerned central and state officials with full information and latest visuals of the ground-level situation. Launched in: 2015 Designed by: Prime Minister’s Office (PMO) team with the help of the National Informatics Center (NIC). It is a three-tier system: PMO, Union Government Secretaries, and Chief Secretaries of the States. Objective:  Grievance Redressal Programme Implementation Project Monitoring The PRAGATI platform uses latest technologies such as Digital data management, video-conferencing and geo-spatial technology. Significance:  It promotes cooperative federalism It is a robust system for bringing e-transparency and e-accountability with real-time presence and exchange among the key stakeholders It is an innovative project in e-governance and good governance. 125th anniversary celebrations of ‘Prabuddha Bharata’ on 31st Jan The journal ‘Prabuddha Bharata’ has been an important medium for spreading the message of India’s ancient spiritual wisdom. Its publication was started from Chennai (erstwhile Madras), where it continued to be published for two years, after which it was published from Almora. Later, in April 1899, the place of publication of the Journal was shifted to Advaita Ashrama and it has been continuously published from there since then. Some of the greatest personalities have left their imprint on the pages of ‘Prabuddha Bharata’ through their writings on Indian culture, spirituality, philosophy, history, psychology, art, and other social issues. Luminaries like Netaji Subhas Chandra Bose, Bal Gangadhar Tilak, Sister Nivedita, Sri Aurobindo, Former President Sarvepalli Radhakrishnan, among others, have contributed to the Journal over the years. The Advaita Ashrama is working towards making the entire ‘Prabuddha Bharata’ archive available online on its website. Lala Lajpat Rai  A stalwart of the freedom struggle, Lala Lajpat Rai ranks among India’s most outstanding leaders Born on 28thJanuary 1865 at a small village of Dhudike in district Ferozepur, Punjab, he was a contemporary of great stalwarts including Mahatma Gandhi Popularly known as ‘Punjab Kesari’ or ‘The Lion of Punjab’ Founded Servants of the People Society and Punjab National Bank Presided over the first session of the All India Trade Union Congress in 1920, advocated for organized labour as the antidote of capitalism and imperialism. Key Highlights of Economic Survey 2020-21 Saving Lives and Livelihoods amidst a Once-in-a-Century Crisis India focused on saving lives and livelihoods by its willingness to take short-term pain for long-term gain, at the onset of the COVID-19 pandemic Response stemmed from the humane principle that: Human lives lost cannot be brought back GDP growth will recover from the temporary shock caused by the pandemic An early, intense lockdown provided a win-win strategy to save lives, and preserve livelihoods via economic recovery in the medium to long-term. Strategy also motivated by the Nobel-Prize winning research by Hansen & Sargent (2001): a policy focused on minimizing losses in a worst-case scenario when uncertainty is very high India’s strategy flattened the curve, pushed the peak to September, 2020. After the September peak, India has been unique in experiencing declining daily cases despite increasing mobility V-shaped recovery, as seen in 7.5% decline in GDP in Q2 and recovery across all key economic indicators vis-à-vis the 23.9% GDP contraction in Q1 COVID pandemic affected both demand and supply: India was the only country to announce structural reforms to expand supply in the medium-long term and avoid long-term damage to productive capacities Calibrated demand side policies to ensure that the accelerator is slowly pushed down only when the brakes on economic activities are being removed A public investment programme centered around the National Infrastructure Pipeline to accelerate the demand push and further the recovery Upturn in the economy, avoiding a second wave of infections - a sui generis case in strategic policymaking amidst a once-in-a-century pandemic State of the Economy in 2020-21: A Macro View COVID-19 pandemic ensued global economic downturn, the most severe one since the Global Financial Crisis. The lockdowns and social distancing norms brought the already slowing global economy to a standstill. Global economic output estimated to fall by 3.5% in 2020 (IMF January 2021 estimates). Governments and central banks across the globe deployed various policy tools to support their economies such as lowering policy rates, quantitative easing measures, etc. India adopted a four-pillar strategy of containment, fiscal, financial, and long-term structural reforms: Calibrated fiscal and monetary support was provided, cushioning the vulnerable during the lockdown and boosting consumption and investment while unlocking A favourable monetary policy ensured abundant liquidity and immediate relief to debtors while unclogging monetary policy transmission As per the advance estimates by NSO, India’s GDP is estimated to grow by (-) 7.7% in FY21 - a robust sequential growth of 23.9% in H2: FY21 over H1: FY21 India’s real GDP to record a 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4% – the highest since independence: Rebound to be led by low base and continued normalization in economic activities as the rollout of COVID-19 vaccines gathers traction Government consumption and net exports cushioned the growth from diving further down, whereas investment and private consumption pulled it down The recovery in second half of FY2020-21 is expected to be powered by government consumption, estimated to grow at 17% YoY Exports expected to decline by 5.8% and imports by 11.3% in the second half of FY21 India expected to have a Current Account Surplus of 2% of GDP in FY21, a historic high after 17 years On supply side, Gross Value Added (GVA) growth pegged at -7.2% in FY21 as against 3.9% in FY20: Agriculture set to cushion the shock of the COVID-19 pandemic on the Indian economy in FY21 with a growth of 3.4% Industry and services estimated to contract by 9.6% and 8.8% respectively during FY21 Agriculture remained the silver lining while contact-based services, manufacturing, construction were hit hardest, and recovering steadily India remained a preferred investment destination in FY 2020-21 with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies: Net FPI inflows recorded an all-time monthly high of US$ 9.8 billion in November 2020, as investors’ risk appetite returned India was the only country among emerging markets to receive equity FII inflows in 2020 Buoyant SENSEX and NIFTY resulted in India’s market-cap to GDP ratio crossing 100% for the first time since October 2010 Softening of CPI inflation recently reflects easing of supply side constraints that affected food inflation Mild contraction of 0.8% in investment (as measured by Gross Fixed Capital Formation) in 2nd half of FY21, as against 29% drop in 1st half of FY21 Reignited inter and intra state movement and record-high monthly GST collections have marked the unlocking of industrial and commercial activity The external sector provided an effective cushion to growth with India recording a Current Account Surplus of 3.1% of GDP in the first half of FY21: Strong services exports and weak demand leading to a sharper contraction in imports (merchandise imports contracted by 39.7%) than exports (merchandise exports contracted by 21.2%) Forex reserves increased to a level so as to cover 18 months worth of imports in December 2020 External debt as a ratio to GDP increased to 21.6% at end-September 2020 from 20.6% at end-March 2020 Ratio of forex reserves to total and short-term debt improved because of the sizable accretion in reserves V-shaped recovery is underway, as demonstrated by a sustained resurgence in high frequency indicators such as power demand, e-way bills, GST collection, steel consumption, etc. India became the fastest country to roll-out 10 lakh vaccines in 6 days and also emerged as a leading supplier of the vaccine to neighbouring countries and Brazil Economy’s homecoming to normalcy brought closer by the initiation of a mega vaccination drive: Hopes of a robust recovery in services sector, consumption, and investment have been rekindled Reforms must go on to enable India realize its potential growth and erase the adverse impact of the pandemic India’s mature policy response to the ‘once-in-a-century’ crisis provides important lessons for democracies to avoid myopic policy-making and demonstrates benefits of focusing on long-term gains Does Growth lead to Debt Sustainability? Yes, But Not Vice- Versa! Growth leads to debt sustainability in the Indian context but not necessarily vice-versa: Debt sustainability depends on the ‘Interest Rate Growth Rate Differential’ (IRGD), i.e., the difference between the interest rate and the growth rate In India, interest rate on debt is less than growth rate - by norm, not by exception Negative IRGD in India – not due to lower interest rates but much higher growth rates – prompts a debate on fiscal policy, especially during growth slowdowns and economic crises Growth causes debt to become sustainable in countries with higher growth rates; such clarity about the causal direction is not witnessed in countries with lower growth rates Fiscal multipliers are disproportionately higher during economic crises than during economic booms         Active fiscal policy can ensure that the full benefit of reforms is reaped by limiting potential damage to productive capacity Fiscal policy that provides an impetus to growth will lead to lower debt-to-GDP ratio Given India’s growth potential, debt sustainability is unlikely to be a problem even in the worst scenarios Desirable to use counter-cyclical fiscal policy to enable growth during economic downturns Active, counter-cyclical fiscal policy - not a call for fiscal irresponsibility, but to break the intellectual anchoring that has created an asymmetric bias against fiscal policy Does India’s Sovereign Credit Rating Reflect Its Fundamentals? No! The fifth largest economy in the world has never been rated as the lowest rung of the investment grade (BBB-/Baa3) in sovereign credit ratings: Reflecting the economic size and thereby the ability to repay debt, the fifth largest economy has been predominantly rated AAA China and India are the only exceptions to this rule – China was rated A-/A2 in 2005 and now India is rated BBB-/Baa3 India’s sovereign credit ratings do not reflect its fundamentals: A clear outlier amongst countries rated between A+/A1 and BBB-/Baa3 for S&P/ Moody’s, on several parameters Rated significantly lower than mandated by the effect on the sovereign rating of the parameter Credit ratings map the probability of default and therefore reflect the willingness and ability of borrower to meet its obligations: India’s willingness to pay is unquestionably demonstrated through its zero sovereign default history India’s ability to pay can be gauged by low foreign currency denominated debt and forex reserves Sovereign credit rating changes for India have no or weak correlation with macroeconomic indicators India’s fiscal policy should reflect Gurudev Rabindranath Tagore’s sentiment of ‘a mind without fear’ Sovereign credit ratings methodology should be made more transparent, less subjective and better attuned to reflect economies’ fundamentals Inequality and Growth: Conflict or Convergence? The relationship between inequality and socio-economic outcomes vis-à-vis economic growth and socio-economic outcomes, is different in India from that in advanced economies. Both inequality and per-capita income (growth) have similar relationships with socio-economic indicators in India, unlike in advanced economies Economic growth has a greater impact on poverty alleviation than inequality India must continue to focus on economic growth to lift the poor out of poverty Expanding the overall pie - redistribution in a developing economy is feasible only if the size of the economic pie grows Healthcare takes centre stage, finally! COVID-19 pandemic emphasized the importance of healthcare sector and its inter-linkages with other sectors - showcased how a health crisis transformed into an economic and social crisis India’s health infrastructure must be agile so as to respond to pandemics - healthcare policy must not become beholden to ‘saliency bias’ National Health Mission (NHM) played a critical role in mitigating inequity as the access of the poorest to pre-natal/post-natal care and institutional deliveries increased significantly Emphasis on NHM in conjunction with Ayushman Bharat should continue An increase in public healthcare spending from 1% to 2.5-3% of GDP can decrease the out-of-pocket expenditure from 65% to 35% of overall healthcare spending A regulator for the healthcare sector must be considered given the market failures stemming from information asymmetry Mitigation of information asymmetry will help lower insurance premiums, enable the offering of better products and increase insurance penetration Information utilities that help mitigate the information asymmetry in healthcare sector will be useful in enhancing overall welfare Telemedicine needs to be harnessed to the fullest by investing in internet connectivity and health infrastructure Process Reforms India over-regulates the economy resulting in regulations being ineffective even with relatively good compliance with process         The root cause of the problem of overregulation is an approach that attempts to account for every possible outcome Increase in complexity of regulations, intended to reduce discretion, results in even more non-transparent discretion The solution is to simplify regulations and invest in greater supervision which, by definition, implies greater discretion Discretion, however, needs to be balanced with transparency, systems of ex-ante accountability and ex-post resolution mechanisms The above intellectual framework has already informed reforms ranging from labour codes to removal of onerous regulations on the BPO sector Regulatory Forbearance an emergency medicine, not staple diet! During the Global Financial Crisis, regulatory forbearance helped borrowers tide over temporary hardship Forbearance continued long after the economic recovery, resulting in unintended consequences for the economy Banks exploited the forbearance window for window-dressing their books and misallocated credit, thereby damaging the quality of investment in the economy Forbearance represents emergency medicine that should be discontinued at the first opportunity when the economy exhibits recovery, not a staple diet that gets continued for years To promote judgement amidst uncertainty, ex-post inquests must recognize the role of hindsight bias and not equate unfavourable outcomes to bad judgement or  malafide intent An Asset Quality Review exercise must be conducted immediately after the forbearance is withdrawn The legal infrastructure for the recovery of loans needs to be strengthened de facto Innovation: Trending Up but Needs Thrust, Especially from the Private Sector India entered the top-50 innovating countries for the first time in 2020 since the inception of the Global Innovation Index in 2007, ranking first in Central and South Asia, and third amongst lower middle-income group economies India’s gross domestic expenditure on R&D (GERD) is lowest amongst top ten economies India’s aspiration must be to compete on innovation with the top ten economies The government sector contributes a disproportionately large share in total GERD at three times the average of top ten economies The business sector’s contribution to GERD, total R&D personnel and researchers is amongst the lowest when compared to top ten economies This situation has prevailed despite higher tax incentives for innovation and access to equity capital India’s business sector needs to significantly ramp up investments in R&D Indian resident’s share in total patents filed in the country must rise from the current 36% which is much below the average of 62% in top ten economies For achieving higher improvement in innovation output, India must focus on improving its performance on institutions and business sophistication innovation inputs JAY Ho! PM‘JAY’ Adoption and Health outcomes Pradhan Mantri Jan Arogya Yojana (PM-JAY) – the ambitious program launched by Government of India in 2018 to provide healthcare access to the most vulnerable sections demonstrates strong positive effects on healthcare outcomes in a short time PM-JAY is being used significantly for high frequency, low cost care such as dialysis and continued during the Covid pandemic and the lockdown. Causal impact of PM-JAY on health outcomes by undertaking a Difference-in-Difference analysis based on National Family Health Survey (NFHS)-4 (2015-16) and NFHS-5 (2019-20) is following: Enhanced health insurance coverage: The proportion of households that had health insurance increased in Bihar, Assam and Sikkim from 2015-16 to 2019-20 by 89% while it decreased by 12% over the same period in West Bengal Decline in  Infant Mortality rate: from 2015-16 to 2019-20, infant mortality rates declined by 20% for West Bengal and by 28% for the three neighbouring states Decline in under-5 mortality rate: Bengal saw a fall of 20% while, the neighbours witnessed a 27% reduction Modern methods of contraception, female sterilization and pill usage went up by 36%, 22% and 28% respectively in the three neighbouring states while the respective changes for West Bengal were negligible While West Bengal did not witness any significant decline in unmet need for spacing between consecutive kids, the neighbouring three states recorded a 37% fall Various metrics for mother and child care improved more in the three neighbouring states than in West Bengal. Each of these health effects manifested similarly when we compare all states that implemented PM-JAY versus the states that did not Overall, the comparison reflects significant improvements in several health outcomes in states that implemented PM-JAY versus those that did not Bare Necessities Access to the ‘bare necessities’ has improved across all States in the country in 2018 as compared to 2012 It is highest in States such as Kerala, Punjab, Haryana and Gujarat while lowest in Odisha, Jharkhand, West Bengal and Tripura Improvement in each of the five dimensions viz., access to water, housing, sanitation, micro-environment and other facilities Inter-State disparities declined across rural and urban areas as the laggard states have gained relatively more between 2012 and 2018 Improved disproportionately more for the poorest households when compared to the richest households across rural and urban areas Improved access to the ‘bare necessities’ has led to improvements in health indicators such as infant mortality and under-5 mortality rate and also correlates with future improvements in education indicators Thrust should be given to reduce variation in the access to bare necessities across states, between rural and urban and between income groups The schemes such as Jal Jeevan Mission, SBM-G, PMAY-G, etc. may design appropriate strategy to reduce these gaps A Bare Necessities Index (BNI) based on the large annual household survey data can be constructed using suitable indicators and methodology at district level for all/targeted districts to assess the progress on access to bare necessities. Fiscal Developments India adopted a calibrated approach best suited for a resilient recovery of its economy from COVID-19 pandemic impact, in contrast with a front-loaded large stimulus package adopted by many countries Expenditure policy in 2020-21 initially aimed at supporting the vulnerable sections but was re-oriented to boost overall demand and capital spending, once the lockdown was unwound Monthly GST collections have crossed the Rs. 1 lakh crore mark consecutively for the last 3 months, reaching its highest levels in December 2020 ever since the introduction of GST Reforms in tax administration have begun a process of transparency and accountability and have incentivized tax compliance by enhancing honest tax-payers’ experience Central Government has also taken consistent steps to impart support to the States in the challenging times of the pandemic External Sector COVID-19 pandemic led to a sharp decline in global trade, lower commodity prices and tighter external financing conditions with implications for current account balances and currencies of different countries India’s forex reserves at an all-time high of US$ 586.1 billion as on January 08, 2021, covering about 18 months worth of imports India experiencing a Current Account Surplus along with robust capital inflows leading to a BoP surplus since Q4 of FY2019-20 Balance on the capital account is buttressed by robust FDI and FPI inflows: Net FDI inflows of US$ 27.5 billion during April-October, 2020: 14.8% higher as compared to first seven months of FY2019-20 Net FPI inflows of US$ 28.5 billion during April-December, 2020 as against US$ 12.3 billion in corresponding period of last year In H1: FY21, steep contraction in merchandise imports and lower outgo for travel services led to: Sharper fall in current payments (by 30.8%) than current receipts (15.1%) Current Account Surplus of US$ 34.7 billion (3.1% of GDP) India to end with an Annual Current Account Surplus after a period of 17 years India’s merchandise trade deficit was lower at US$ 57.5 billion in April-December, 2020 as compared to US$ 125.9 billion in the corresponding period last year In April-December, 2020, merchandise exports contracted by 15.7% to US$ 200.8 billion from US$ 238.3 billion in April-December, 2019: Petroleum, Oil and Lubricants (POL) exports have contributed negatively to export performance during the period under review Non-POL exports turned positive and helped in improving export performance in Q3 of 2020-21 Within Non-POL exports, agriculture & allied products, drugs & pharmaceutical and ores & minerals recorded expansion Total merchandise imports declined by (-) 29.1% to US$ 258.3 billion during April-December, 2020 from US$ 364.2 billion during the same period last year: Sharp decline in POL imports pulled down the overall import growth Imports contracted sharply in Q1 of 2020-21; the pace of contraction eased in subsequent quarters, due to the accelerated positive growth in Gold and Silver imports and narrowing contraction in non-POL, non-Gold & non-Silver imports Fertilizers, vegetable oil, drugs & pharmaceuticals and computer hardware & peripherals have contributed positively to the growth of non-POL, non-Gold & non-Silver imports Trade balance with China and the US improved as imports slowed Net services receipts amounting to US$ 41.7 billion remained stable in April-September 2020 as compared with US$ 40.5 billion in corresponding period a year ago. Resilience of the services sector was primarily driven by software services, which accounted for 49% of total services exports Net private transfer receipts, mainly representing remittances by Indians employed overseas, totaling US$ 35.8 billion in H1: FY21 declined by 6.7% over the corresponding period of previous year At end-September 2020, India’s external debt placed at US$ 556.2 billion - a decrease of US$ 2.0 billion (0.4%) as compared to end-March 2020. Improvement in debt vulnerability indicators: Ratio of forex reserves to total and short-term debt (original and residual) Ratio of short-term debt (original maturity) to the total stock of external debt. Debt service ratio (principal repayment plus interest payment) increased to 9.7% as at end-September 2020, compared to 6.5% as at end-March 2020 Rupee appreciation/depreciation: In terms of 6-currency nominal effective exchange rate (NEER) (trade-based weights), Rupee depreciated by 4.1% in December 2020 over March 2020; appreciated by 2.9% in terms of real effective exchange rate (REER) In terms of 36-currency NEER (trade-based weights), Rupee depreciated by 2.9% in December 2020 over March 2020; appreciated by 2.2% in terms of REER RBI’s interventions in forex markets ensured financial stability and orderly conditions, controlling the volatility and one-sided appreciation of the Rupee Initiatives undertaken to promote exports: Production Linked Incentive (PLI) Scheme Remission of Duties and Taxes on Exported Products (RoDTEP) Improvement in logistics infrastructure and digital initiatives Money Management and Financial Intermediation Accommodative monetary policy during 2020: repo rate cut by 115 bps since March 2020 Systemic liquidity in FY2020-21 has remained in surplus so far. RBI undertook various conventional and unconventional measures like: Open Market Operations Long Term Repo Operations Targeted Long Term Repo Operations Gross Non-Performing Assets ratio of Scheduled Commercial Banks decreased from 8.21% at end-March, 2020 to 7.49% at end-September, 2020 The monetary transmission of lower policy rates to deposit and lending rates improved during FY2020-21 NIFTY-50 and BSE SENSEX reached record high closing of 14,644.7 and 49,792.12 respectively on January 20, 2021 The recovery rate for the Scheduled Commercial Banks through IBC (since its inception) has been over 45% Prices and Inflation Headline CPI inflation: Averaged 6.6% during April-December, 2020 and stood at 4.6% in December, 2020, mainly driven by rise in food inflation (from 6.7% in 2019-20 to 9.1% during April-December, 2020, owing to build up in vegetable prices) CPI headline and its sub groups witnessed inflation during April-October 2020, driven by substantial increase in price momentum - due to the initial disruptions caused by COVID-19 lockdown Moderated price momentum by November 2020 for most sub groups, coupled with positive base effect helped ease inflation Rural-urban difference in CPI inflation saw a decline in 2020: Since November 2019, CPI-Urban inflation has closed the gap with CPI-Rural inflation Food inflation has almost converged now Divergence in rural-urban inflation observed in other components of CPI like fuel and light, clothing and footwear, miscellaneous etc. During April-December, 2019 as well as April-December, 2020-21, the major driver of CPI-C inflation was the food and beverages group: Contribution increased to 59% during April-December, 2020, compared to 53.7% during April-December, 2019   Thali cost increased between June 2020 and November 2020, however a sharp fall in the month of December reflecting the fall in the prices of many essential food commodities State-wise trend: CPI-C inflation increased in most of the states in the current year Regional variation persists Inflation ranged from 3.2% to 11% across States/UTs during June-December 2020 compared to (-) 0.3% to 7.6% during the same period last year. Food inflation driving overall CPI-C inflation due to the relatively more weight of food items in the index. Steps taken to stabilize prices of food items: Banning of export of onions Imposition of stock limit on onions Easing of restriction on imports of pulses Gold prices: Sharp spike as investors turned to gold as a safe haven investment amid COVID-19 induced economic uncertainties Compared to other assets, gold had considerably higher returns during FY2020-21 Consistency in import policy warrants attention: Increased dependence on imports of edible oils poses risk of fluctuations in import prices Imports impacting production and prices of domestic edible oil market, coupled with frequent changes in import policy of pulses and edible oils, add to confusion among farmers/producers and delay imports Sustainable Development and Climate Change India has taken several proactive steps to mainstream the SDGs into the policies, schemes and programmes Voluntary National Review (VNR) presented to the United Nations High-Level Political Forum (HLPF) on Sustainable Development Localisation of SDGs is crucial to any strategy aimed at achieving the goals under the 2030 Agenda Several States/UTs have created institutional structures for implementation of SDGs and also nodal mechanisms within every department and at the district levels for better coordination and convergence Sustainable development remains core to the development strategy despite the unprecedented COVID-19 pandemic crisis Eight National Missions under National Action Plan on Climate Change (NAPCC) focussed on the objectives of adaptation, mitigation and preparedness on climate risks India’s Nationally Determined Contributions (NDC) states that finance is a critical enabler of climate change action The financing considerations will therefore remain critical especially as the country steps up the targets substantially The goal of jointly mobilizing US$ 100 billion a year by 2020 for climate financing by the developed countries has remained elusive The postponement of COP26 to 2021 also gives less time for negotiations and other evidence-based work to inform the post-2025 goal Despite overall growth in the global bond markets, green bond issuance in the first half of 2020 slowed down from 2019, possibly as a result of the on-going COVID-19 pandemic International Solar Alliance (ISA) launched two new initiatives – ‘World Solar Bank’ and ‘One Sun One World One Grid Initiative’ - poised to bring about solar energy revolution globally Agriculture and Food Management India’s Agricultural (and Allied Activities) sector has shown its resilience amid the adversities of COVID-19 induced lockdowns with a growth of 3.4% at constant prices during 2020-21 (first advance estimate) The share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current prices is 17.8% for the year 2019-20 (CSO-Provisional Estimates of National Income, 29th May, 2020) Gross Capital Formation (GCF) relative to GVA showing a fluctuating trend from 17.7 % in 2013-14 to 16.4 % in 2018-19, with a dip to 14.7 % in 2015-16 Total food grain production in the country in the agriculture year 2019-20 (as per Fourth Advance Estimates), is 11.44 million tonnes more than than during 2018-19 The actual agricultural credit flow was ₹13,92,469.81 crores against the target of ₹13,50,000 crores in 2019-20. The target for 2020-21 was ₹15,00,000 crores and a sum of ₹ 9,73,517.80 crores was disbursed till 30th November, 2020: 1.5 crore dairy farmers of milk cooperatives and milk producer companies’ were targeted to provide Kisan Credit Cards (KCC) as part of Prime Minister’s AatmaNirbhar Bharat Package after the budget announcement of  February 2020 As of mid January 2021, a total of 44,673 Kisan Credit Cards (KCCs) have been issued to fishers and fish farmers and an additional 4.04 lakh applications from fishers and fish farmers are with the banks at various stages of issuance The Pradhan Mantri Fasal Bima Yojana covers over 5.5 crore farmer applications year on year Claims worth Rs. 90,000 crore paid, as on 12th January, 2021 Speedy claim settlement directly into the farmer accounts through Aadhar linkage 70 lakh farmers benefitted and claims worth Rs. 8741.30 crores were transferred during COVID-19 lock down period An amount of Rs. 18000 crore have been deposited directly in the bank accounts of 9 crore farmer families of the country in December, 2020 in the 7th installment of financial benefit under the PM-KISAN scheme Fish production reached an all-time high of 14.16 million metric tons during 2019-20: GVA by the Fisheries sector to the national economy stood at ₹2,12,915 crores constituting 1.24% of the total national GVA and 7.28 % of the agricultural GVA Food Processing Industries (FPI) sector growing at an Average Annual Growth Rate (AAGR) of around 9.99 % as compared to around 3.12 % in Agriculture and 8.25 % in Manufacturing at 2011-12 prices during the last 5 years ending 2018-19 Pradhan Mantri Garib Kalyan Anna Yojana: 80.96 crore beneficiaries were provided foodgrains above NFSA mandated requirement free of cost till November, 2020. Over 200 LMT of foodgrains were provided amounting to a fiscal outgo of over Rs. 75000 Crores AatmaNirbhar Bharat Package: 5 kg per person per month for four months (May to August) to approximately 8 crores migrants (excluded under NFSA or state ration card) entailing subsidy of  Rs. 3109 crores approximately Industry and Infrastructure A strong V-shaped recovery of economic activity further confirmed by IIP data The IIP & eight-core index further inched up to pre-COVID levels The broad-based recovery in the IIP resulted in a growth of (-) 1.9 % in Nov-2020 as compared to a growth of 2.1 % in Nov-2019 and a nadir of (-) 57.3 % in Apr-2020 Further improvement and firming up in industrial activities are foreseen with the Government enhancing capital expenditure, the vaccination drive and the resolute push forward on long pending reform measures AatmaNirbhar Bharat Abhiyan with a stimulus package worth 15 % of India’s GDP announced India’s rank in the Ease of Doing Business (EoDB) Index for 2019 has moved upwards to the 63rd position in 2020 from 77th in 2018 as per the Doing Business Report (DBR): India has improved its position in 7 out of 10 indicators Acknowledges India as one of the top 10 improvers, the third time in a row, with an improvement of 67 ranks in three years It is also the highest jump by any large country since 2011  FDI equity inflows were US$49.98 billion in FY20 as compared to US$44.37 billion during FY19: It is US$30.0 billion for FY21 (up to September-2020) The bulk of FDI equity flow is in the non-manufacturing sector Within the manufacturing sector, industries like automobile, telecommunication, metallurgical, non-conventional energy, chemical (other than fertilizers), food processing, petroleum & natural gas got the bulk of FDI Government has announced a Production-Linked Incentive (PLI) Scheme in the 10 key sectors under the aegis of AatmaNirbhar Bharat for enhancing India’s manufacturing capabilities and exports: To be implemented by the concerned ministries with an overall expenditure estimated at Rs.1.46 lakh crores and with sector specific financial limits Services Sector India’s services sector contracted by nearly 16 % during H1: FY2020-21, during the COVID-19 pandemic mandated lockdown, owing to its contact-intensive nature Key indicators such as Services Purchasing Managers’ Index, rail freight traffic, and port traffic, are all displaying a V-shaped recovery after a sharp decline during the lockdown Despite the disruptions being witnessed globally, FDI inflows into India’s services sector grew robustly by 34% Y-o-Y during April-September 2020 to reach US$ 23.6 billion The services sector accounts for over 54 % of India’s GVA and nearly four-fifths of total FDI inflow into India The sector’s share in GVA exceeds 50% in 15 out of 33 States and UTs, and is particularly more pronounced (greater than 85%) in Delhi and Chandigarh Services sector accounts for 48% of total exports, outperforming goods exports in the recent years The shipping turnaround time at ports has almost halved from 4.67 days in 2010-11 to 2.62 days in 2019-20 The Indian start-up ecosystem has been progressing well amidst the COVID-19 pandemic, being home to 38 unicorns - adding a record number of 12 start-ups to the unicorn list last year India’s space sector has grown exponentially in the past six decades: Spent about US$ 1.8 billion on space programmes in 2019-20 Space ecosystem is undergoing several policy reforms to engage private players and attract innovation and investment Social Infrastructure, Employment and Human Development The combined (Centre and States) social sector expenditure as % of GDP has increased in 2020-21 compared to last year. India’s rank in HDI 2019 was recorded at 131, out of a total 189 countries: India's GNI per capita (2017 PPP $) has increased from US$ 6,427 in 2018 to US$ 6,681 in 2019 Life expectancy at birth improved from 69.4 years in 2018 to 69.7 years in 2019 The access to data network, electronic devices such as computer, laptop, smart phone etc. gained importance due to online learning and remote working during the pandemic Major proportion of workforce engaged as regular wage/salaried in the urban sector during the period of January 2019-March 2020 (quarterly survey of PLFS) Government’s incentive to boost employment through AatmaNirbhar Bharat Rozgar Yojana and rationalization and simplification of existing labour codes into 4 codes Low level of female LFPR in India: Females spending disproportionately more time on unpaid domestic and care giving services to household members as compared to their male counterparts (Time Use Survey, 2019) Need to promote non-discriminatory practices at the workplace like pay and career progression, improve work incentives, including other medical and social security benefits for female workers Under PMGKP announced in March, 2020, cash transfers of upto Rs.1000 to existing old aged, widowed and disabled beneficiaries under the National Social Assistance Programme (NSAP) An amount of Rs. 500 each was transferred for three months digitally into bank accounts of the women beneficiaries under PM Jan Dhan Yojana, totalling about Rs. 20.64 crores Free distribution of gas cylinders to about 8 crore families for three months Limit of collateral free lending increased from Rs. 10 lakhs to Rs. 20 lakhs for 63 lakh women SHGs which would support 6.85 crore households Wages under Mahatma Gandhi NREGA increased by Rs.20 from Rs.182 to Rs.202 w.e.f. 1st April, 2020 India’s fight against COVID-19: Initial measures of lockdown, social distancing, travel advisories, practicing hand wash, wearing masks reduced the spread of the disease Country also acquired self-reliance in essential medicines, hand sanitizers, protective equipment including masks, PPE Kits, ventilators, COVID-19 testing and treatment facilities World’s largest COVID-19 vaccination drive commenced on 16th January, 2021 using two indigenously manufactured vaccines

TLP Mains Answer Writing

IASbaba’s TLP (Phase 1 – ENGLISH & हिंदी): UPSC Mains Answer Writing – General Studies Paper 2 Questions [1st February,2021] – Day 19

For Previous TLP (ARCHIVES) - CLICK HERE Hello Friends, Welcome to IASbaba’s TLP (Phase 1- ENGLISH & हिंदी): UPSC Mains Answer Writing – General Studies 2 Questions [1st February 2020] – Day 19 We will make sure, in the next 100 days not a single day is wasted and your mains preparation is solidified. All your energies are channelized in the right direction. Trust us! This will make a huge difference in your results this time, provided that you follow this plan sincerely every day without fail. Gear up and Make the Best Use of this initiative. We are giving 5 Mains Questions on a daily basis so that every student can actively participate and keep your preparation focused. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” To Know More about the Initiative -> CLICK HERE SCHEDULE/DETAILED PLAN – > CLICK HERE Note: Click on Each Question (Link), it will open in a new tab and then Answer respective questions! 1. What is multilevel governance? Discuss. What are its benefits and limitations? Explain.  बहुस्तरीय शासन क्या है? चर्चा करें। इसके लाभ और सीमाएँ क्या हैं? स्पष्ट कीजिए। 2. Is lack of finance the only impediment in the proper functioning of local bodies? Critically examine. क्या स्थानीय निकायों के उचित कामकाज में वित्त की कमी एकमात्र बाधा है? समालोचनात्मक जांच करें। 3. What is the role of the Finance Commission in strengthening the finances of local bodies? Discuss. What would suggest to further empower local governance in India?  स्थानीय निकायों के वित्त को मजबूत करने में वित्त आयोग की क्या भूमिका है? चर्चा करें। भारत में स्थानीय शासन को और सशक्त बनाने के लिए आप क्या सुझाव देंगे? 4. What are India’s immediate challenges in its dealings with countries like Myanmar and Bangladesh? Analyse. म्यांमार और बांग्लादेश जैसे देशों के साथ इसके व्यवहार में भारत की तत्काल चुनौतियाँ क्या हैं? विश्लेषण करें।  5. What are your expectations with today’s budget? Please outline five areas where you would like to see some intervention. आज के बजट से आपकी क्या उम्मीदें हैं? कृपया पाँच क्षेत्रों को रेखांकित करें जहाँ आप कुछ हस्तक्षेप देखना चाहेंगे।  P.S: The review from IASbaba will happen from the time the question is posted till 10 pm everyday. We would also encourage peer reviews. So friends get actively involved and start reviewing each others answers. This will keep the entire community motivated. All the Best :)

Ace The Prelims (ATP)

Ace The Prelims (ATP) – 2021– PRELIMS – [1st February, 2021] – Day 25

ARCHIVES Hello Friends, Welcome to IASbaba’s Ace The Prelims (ATP) – 2021 – PRELIMS & MAINS – [1st February, 2021] – Day 25   UPSC Quiz - 2021 : IASbaba's Daily Current Affairs Quiz 1st February 2021 UPSC CSAT Quiz – 2021: IASbaba’s Daily CSAT Practice Test – 1st February 2021 UPSC Static Quiz – 2021: IASbaba’s Daily Static Quiz (PYQs) – Environment and Sci & Tech [Day 25]   The way ATP molecules provide energy to every single cell of our body and help us in achieving our day to day tasks, similarly, the ‘Ace the Prelims (ATP) 2021’ Programme will help in providing energy and direction to your prelims preparation and push you beyond the cutoff of Prelims 2021. Ace the Prelims (ATP) – 2021 will include Daily Static Quiz (PYQs) Daily CSAT Practice Test Daily Current Affair Quiz 60 Days Plan (starts from 2nd week of March) To Know More about Ace the Prelims (ATP) 2021 - CLICK HERE   Thank You IASbaba

Daily Static Quiz

UPSC Static Quiz – 2021: IASbaba’s Daily Static Quiz (PYQs) – Environment and Sci & Tech [Day 25]

ARCHIVES DAILY STATIC QUIZ (PYQs) It will cover PYQs all the topics of static subjects – Polity, History, Geography, Economics, Environment and Science and technology. Daily 5 questions (Monday to Saturday) will be posted from static topics (PYQs) The questions will be in the quiz format so you will be able to answer them directly on the portal. Schedule Week 1 – Polity Week 2 – Economics Week 3 – History and Art & Culture Week 4 – Geography Week 5 – Environment and Science & Technology Same cycle will be repeated from Week 6. Make the best use of the initiative. All the best! To Know More about Ace the Prelims (ATP) 2021 - CLICK HERE 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

IASbaba’s Daily CSAT Quiz

UPSC CSAT Quiz – 2021: IASbaba’s Daily CSAT Practice Test – 1st February 2021

ARCHIVES Daily CSAT Practice Test Everyday 5 Questions from Aptitude, Logical Reasoning, and Reading Comprehension will be covered from Monday to Saturday. Make the best use of the initiative. All the best! To Know More about Ace the Prelims (ATP) 2021 - CLICK HERE 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

Daily Prelims CA Quiz

UPSC Quiz - 2021 : IASbaba's Daily Current Affairs Quiz 1st February 2021

For 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. We will make sure, in the next 4 months not a single day is wasted. All your energies are channelized in the right direction. Trust us! This will make a huge difference in your results this time, provided that you follow this plan sincerely every day without fail. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” To Know More about Ace the Prelims (ATP) 2021 - CLICK HERE 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

Motivational Articles

Creative Guidance – 5 tips to successful life – Inspirational Educative Articles

5 tips to successful life: Let us first define what exactly success means. Success is different for each individual. In fact, success is entirely defined by an individual. The general ideas of success the world is most familiar with are very easy to understand, but defining success for your individual self is the hard part. Unlike just financial or material success, success can include physical, mental, emotional and existential dimensions. Success can be as broad and as narrow as you would like to define it. Irrespective of what success means to you, there are a few tips that can help you get there. Here are a few: a) Understanding Yourself: There is no meaning to success if it is achieved by totally misunderstanding yourself. In fact, it is impossible to succeed by failing to understand yourself. The first step of success is making concerted effort on a daily basis to understand yourself. b)Understanding People: Success is not all about what you want. It is also about how people perceive that success. If success were to be entirely internal, then we can all conclude that we are successful and don’t have to worry about putting additional effort. Understanding people, their expectations, emotions and judgements are extremely important in order to succeed. c) Understanding Life: Apart from you and the people around you, there is an independent phenomenon that is shaping your life: life itself. Putting in necessary effort to understand the fundamental nature of life, how it shapes things, how it changes things, is as important as understanding yourself in order to succeed. d) Avoiding Shortcuts and Negative Paths: Success is always a long term approach. You can take some crooked paths and find momentary success, but lasting success is possible only by taking a long term positive approach to success. Negative strategies and tactics might yield short term benefits, but they will eventually always come to hurt you. e) Attitude of Gratitude: At the end of the day, irrespective of what you achieve, your success is a sum effort of all the people who have helped you to achieve it. It is very easy to fall into an ego trap when you begin to taste success. Knowing that you are but a small part of a vast tapestry of life that has made things possible for you is probably the most important thing to remember about success. “This article is a part of the creative endeavor of Meditation Farm and IASBABA.”

Important Articles

PUBLIC ADMINISTRATION OPTIONAL TEST SERIES UPSC MAINS 2021 and MAINS 2020 PAPER ANALYSIS - By Adesh Sir

Dear Students, We were overwhelmed by the response that we received on 2020 Public Administration Test Series Conducted by Adesh Sir. We are getting many requests  for the full-fledged notes for Public Administration, we are launching a comprehensive program which includes both Study material and the Test. ILP (Optional) – Public Administration; Features of the Program: Program is divided into 8 modules. Comprehensive Notes will be provided (for the syllabus specified in the module) in the beginning of every module. There will be a Test at the end of each module which would help in assessing your preparation regularly. Detailed Discussion Video of the test will be uploaded soon after the test which would give you a complete idea on Answer Writing. Full length Test will be provided after completion of all the modules. Timely evaluation with effective feedback. Individual Mentorship. Benefits over class room coaching: 90% of the classes go in dictating notes. Our materials are as lucid as a classroom explanation. No class room coaching can teach the answer writing - which is the ultimate goal of studying an optional subject. Most of the chapters are either skipped or given a footnote reference in the classes due to paucity of time. Other Benefits: There is no full-fledged single study material for Public Administration all over India. Every Chapter and every Keyword in the syllabus will be covered in the notes. Every Concept will be explained in lucid language. Examples are provided for better understanding. Notes will also contain tips to tackle Analytical Questions related to some of the difficult topics. The tests contain High Quality Questions that match the UPSC standards. Videos will contain Value Addition for all the questions. Comprehensive Evaluation and Feedback. Hands on mentorship with adaptive, reformative and motivational guidelines. ILP (Optional) – Public Administration Test Series   To Download the SCHEDULE of the Test Series -> CLICK HERE FEES DETAILS: Total Fees: Public administration Test Series (Mains 2020) : Rs.12,000 +  18% GST = Rs. 14,160/- PAYMENT  -> CLICK HERE Faculty Profile: Mr.Adesh M H is known for having great expertise in not only teaching public administration but also in planning the study, selection of resources, revision, and training the students in writing the best quality answers.  He has the credentials of scoring 140 plus (in paper 1-2015 CSE) and 170 plus (in paper 2-2017 CSE) in many of his attempts in the UPSC civil service exam.   UPSC Mains 2020 | Public Administration (Paper 1) Discussion by Adesh Sir UPSC Mains 2020 | Public Administration (Paper 2) Discussion by Adesh Sir FOR ANY QUERIES (Related to Public Administration Optional Test Series) You can reach us on Email id: adeshmhhassanalike@gmail.com Contact: Adesh MH: 8892911673 Office Address: BANGALORE CENTRE: IASbaba’s TLP Centre 2– No. 1443/1444, 2nd Floor, Above Carzspa, Ganapati Circle, Chandra Layout, Vijaynagar, Bangalore 560040. Delhi CENTRE: B, Pusa Rd, opposite to Metro Pillar Number 110, Block B, Karol Bagh, New Delhi, Delhi 110005. Lucknow CENTRE: B-1/66, Sector J, Aliganj, Lucknow - 226024. Landmark: Near Mr. Brown/Opp to Sahu Studio All The Best, IASbaba.                        

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