Feb 2, 2021 IASbaba's Daily Current Affairs

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 2nd February 2021

Archives (PRELIMS + MAINS FOCUS) 8th edition of the India International Silk Fair inaugurated Part of: GS Prelims and GS- III – Economy In news  Union Textiles Minister recently inaugurated the 8th edition of the India International Silk Fair virtually. Key takeaways The fair is considered to be India’s biggest silk fair. It is the Sourcing Fair for silk and silk blend products. Organised by: Indian Silk Export Promotion Council  Ministry: Ministry of Textiles  Sponsored by: Department of Commerce Important value additions India is the 2nd largest producer of Silk. India is the only country in the world that produces all four major varieties of silk i.e. Mulberry, Eri, Tassar, and Muga. Mulberry silk: Mainly in Karnataka Non-mulberry Silk: Temperate tussar silk in Maharashtra,WB, Odisha, Jharkhand, Andhra Pradesh; Tropical tussar silk in sub –himalayan belt ( Manipur, Assam, Meghalaya,etc); Muga Silk in Assam and Eri silk in Assam, Odisha, Bihar India has around 11 Geographical Indications (GI) such as: Pochampally Ikat, Chanderpaul Silk, Mysore Silk, Kanchipuram Silk, Muga Silk, Salem Silk, Arni Silk, Champa Silk, Bhagalpur Silk, Banaras Brocade and Sarees, etc. Related articles: Types of silk and challenges of India’s silk industry: Click here UK Special Visa Scheme For Hong Kong Residents Part of: GS Prelims and GS- II – International relations In news  The UK is opening a special visa scheme that will allow lakhs of Hong Kong residents a chance to migrate and eventually apply for British citizenship. Key takeaways The visas will be issued to those in Hong Kong who hold a British National (Overseas) passport and their immediate dependents and will offer a fast track to UK citizenship. Applicants who get the visa can live and work in the UK for 5 years, after which they apply for settlement. Twelve months after this, they can apply for citizenship. The move is considered the UK’s most generous welcoming of foreign workers since the entry of new EU citizens in 2004. The move comes months after China imposed a sweeping national security law over the Hong Kong, aiming for pro-democracy protests that had captured global attention since 2019. Related articles: Hong Kong National Security Law: Click here Ethylene glycol: a chemical found in antifreeze Part of: GS Prelims and GS- III – Sci & Tech In news  Eleven US soldiers recently fell sick after accidentally drinking ethylene glycol, a chemical found in antifreeze. Important value additions Ethylene glycol is an industrial compound found in consumer products including automotive antifreeze, hydraulic brake fluids, some stamp pad inks, ballpoint pens, solvents, paints, plastics, films, and cosmetics, and is also used as a pharmaceutical vehicle. It is a synthetic liquid, which is odourless.  It is used to make antifreeze and de-icing solutions for cars, airplanes, and boats. Ethylene glycol has a sweet taste and is often accidentally or intentionally ingested. Once ingested, ethylene glycol is chemically broken down into toxic compounds. These by-products then affect the central nervous system (CNS), the heart, and then the kidneys.  The ingestion of sufficient amounts can be fatal. Ethylene glycol can be disseminated through indoor air, water, food, outdoor air, and agricultural products. Community in news: Matua Part of: GS Prelims and GS- I – Culture In news  The Matua community of West Bengal was recently in news. Important value additions The Matua community has members on either side of the Bengal border. It is associated with a religious movement begun in the 1870s by Harichand Thakur of a Namasudra (SC) family, who hailed from Safaldanga in East Bengal. In the early 20th century, his son Guruchand organized the movement socially and politically.  In 1915, the Matua Federation was established. Today, Matuas constitute the second-largest SC population of West Bengal.  For years, the Matuas were demanding an amendment to the Citizenship Act of 2003, whose provisions made it difficult for refugees to get citizenship.  National E-Vidhan Application (NEVA) Project Part of: GS Prelims and GS- II – Polity and governance In news  National E-Vidhan Application (NEVA) Project in Meghalaya was recently in news.  Important value additions e-Vidhan is a Mission Mode Project (MMP) included in Digital India Programme. Nodal Ministry for its implementation: Ministry of Parliamentary Affairs (MoPA)  Funding of NeVA is on the pattern of Central Sponsored Scheme i.e. 60:40; and 90:10 for North East & hilly States and 100% for UTs. The funding for e-Vidhan is provided by the MoPA.  Technical support: Ministry of Electronics and Information Technology (MeitY). Do you know? Paperless Assembly or e-Assembly is a concept involving electronic means to facilitate the work of Assembly.  It enables automation of the entire law-making process, tracking of decisions and documents, sharing of information. Aim of NeVA: To bring all the legislatures of the country together, in one platform thereby creating a massive data depository without having the complexity of multiple applications. Further, live webcasting of Lok Sabha TV and Rajya Sabha TVs is also available on this application.  Doordarshan has already been enabled with provision to incorporate similar facilities in respect of State Legislatures. Art in news: Pattachitra Part of: GS Prelims and GS- I – Culture In news  'Pattachitra' painting was recently in news when Prime Minister cited the example of Bhagyashree Sahu, a young student from Rourkela in Odisha for her keen interest in 'Pattachitra' painting, during his Mann ki Baat program. Important value additions Patta means cloth, and Chitra means picture.  Pattachitra is a picture painted on a piece of cloth.  It is based in the states of West Bengal and Odisha. Bengal tradition: It is centered around Kalighat (in Kolkata). The theme is Not much devotional. Odisha tradition: It is centered around Puri. Almost all of the Chitrakar community hails from a small village in Puri district called Raghurajpur. Odisha paintings are based on Hindu mythology and are especially inspired by Jagannath and the Vaishnava sect. All colors used in the Paintings are natural. Budget 2021-22: Science & Tech Part of: GS Prelims and GS- III – Sci & Tech In news  To strengthen the overall research ecosystem of the country, the Union Budget FY 2021-22 announced a slew of new initiatives to boost innovation and R&D in the country. Key takeaways The Finance Minister proposed an outlay of Rs 50,000 crore, spread over five years, for the National Research Foundation. Rs 1,500 crore has been proposed for a scheme that will provide financial incentives to promote digital modes of payment and further boost digital transactions. A new initiative called National Language Translation Mission (NTLM) has been proposed that will digitize the wealth of governance-and-policy-related knowledge on the Internet and be made available in major Indian languages. New Space India Limited (NSIL), a PSU under the Department of Space, will execute the PSLV-CS51 launch, carrying the Amazonia Satellite from Brazil, along with a few smaller Indian satellites. Four Indian astronauts are also being trained on Generic Space Flight aspects, in Russia for the Gaganyaan Mission, slated to be launched in December 2021. To better understand the realm of Oceans, Finance Minister proposed to launch a Deep Ocean Mission with a budget outlay of more than Rs 4,000 crores, over five years. Budget 2021-22: Disinvestment Part of: GS Prelims and GS- III – Investment; Economy In news  Union Minister for Finance while presenting the Union Budget FY 2021-22 announced that the government has approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors. Key takeaways Existing CPSEs, Public Sector Banks, and Public Sector Insurance Companies shall be covered under it. Twofold classification of Sectors to be disinvested : Strategic Sector: Bare minimum presence of the public sector enterprises and remaining shall be privatized or merged or made subsidiaries with other CPSEs or closed. Following 4 sectors to come under it : Atomic energy, Space and Defence Transport and Telecommunications Power, Petroleum, Coal, and other minerals Banking, Insurance, and financial services Non- Strategic Sector: In this sector, CPSEs will be privatized, otherwise shall be closed. Important value additions An industry is considered strategic if it has large innovative spill overs and if it provides a substantial infrastructure for other firms in the same or related industries. Earlier, the strategic sectors were defined on the basis of industrial policy. The government classified Central Public Sector Enterprises (CPSEs) as ‘strategic’ and ‘non-strategic’ on the basis of industrial policy that keeps on changing from time-to-time. According to this, the Strategic sector PSUs are: Arms & Ammunition of defence equipment Defence aircraft & warships Atomic energy Applications of radiation to agriculture, medicine and non-strategic industry Railways All other PSUs apart from the strategic sectors fall under Non-strategic Sector including Power Discoms. Do you know? Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary.  The primary objective is to maximize the return on investment (ROI) related to capital goods, labor, and infrastructure. Budget 2021-22: Minimum Government, Maximum Governance Part of: GS Prelims and GS- III –Economy & GS – II - Governance In news  Presenting the Union Budget 2021-22 in Parliament, the Union Minister for Finance outlined the plans for reforms in one of the six pillars of the budget i.e. of Minimum Government, Maximum Governance. Key takeaways The forthcoming Census could be the first digital census in the history of India and has been allocated Rs. 3,768 crore in the year 2021-2022. It is proposed to set up a Conciliation Mechanism and mandate its use for quick resolution of contractual disputes to increase ease of doing business.  This will instill confidence in private investors and contractors. To bring about transparency, efficiency, and governance reforms in the nursing profession, The National Nursing and Midwifery Commission Bill will be introduced by the government for passing. It is also proposed to take further measures to rationalize the functioning of Tribunals. The Centre will give a grant of Rs. 300 crore to the Government of Goa for celebrating the diamond jubilee year of the state’s liberation from Portuguese rule. (Mains Focus) ECONOMY/ GOVERNANCE Topic: GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. GS-2: Government Budgeting Budget 2021: The 10 biggest takeaways Context: Union government presented its Budget for the coming financial year (2021-22) that offered not only a direction for growth but also a strong intent for reforms. The top 10 important highlights of Budget were An Expenditure Budget:Union Government has found space for imparting a fiscal impulse in 2021-22. Compared with a Capital Expenditure of Rs 4.12 lakh crore in Revised Estimate (RE) of 2020-21, government has hiked it 34.46% to Rs 5.54 lakh crore in 2021-22.  Choosing capital expenditure might appear like a unsympathetic choice — because it does not involve money to be handed over directly to the needy (and there are a lot of genuinely needy people in the wake of the Covid-19 disruption).  Instead, it is investment into raising the productive capacity in the economy, which is the best chance India has to return to a path of sustainable economic growth. A Reform Signal:Two public-sector banks and one state-owned general insurance company to be lined up for disinvestment. FDI in insurance to be hiked to 74% from 49% now. There will also be Initial Public Offering for LIC. No Populism, But Focus on Growth:Despite being a tough year for the aam admi, government has avoided giving any income tax relief. No increase in standard deduction, no raise in the tax slabs. Health Gets Its Due:In a year when the world was ravaged by the Covid-19 pandemic, Union Government gives health the attention it merited. Health allocation jumped 137% to Rs 2,23,846 crore in 2021-22 compared with Rs 94,452 crore in 2020-21 that includes Rs 35,000 crore for the Covid-19 vaccine. Government has promised to provide further funds, if required. Bad Bank :After dithering for almost six years, the government has finally decided to set up an asset reconstruction company that will take over the bad loans of banks, giving them flexibility to finance the economic recovery. Development Finance Institutions (DFI) Reborn:The idea was dead with most earlier DFIs including IDBI and ICICI turning into banks. To provide debt to long gestation projects, a new DFI with a capital of Rs 20,000 crore.  The trouble in financing infrastructure in the recent past has been that such projects typically require long-term financing.  Using public sector banks to finance such projects, as India did, led to the banks being straddled with huge NPAs.  For one, such banks did not have the expertise to assess risk accurately. Moreover, regular banks faced an asset-liability mismatch — in other words, they accepted deposits (their liabilities) for a short term but extended loans (their assets) over a much longer term. The DFI proposed will have statutory backing, but will be professionally managed. Lending portfolio of Rs 5 lakh crore within three years. Asset Monetisation :This is an ongoing exercise, where the government has not done much to inspire confidence. National Monetisation Pipeline of potential assets of NHAI, PGCIL, Railways, airports, warehouses, sports stadiums. Highway Projects in Election Bound States:Four poll-bound states get major highway projects: Tamil Nadu (3,500 km – Rs 1.03 lakh crore), Kerala (1,100 km – Rs 65,000 crore), West Bengal (675 km – Rs 25,000 crore) and Assam (1,300 km – Rs 34,000 crore). Strategic Disinvestment – Needs Political/ Bureaucratic Push:NITI Aayog asked to short list non-core PSUs for strategic sale. After a poor show in 2020-21, the government has estimated disinvestment receipts at Rs 1,75,000 crore. Growth Vs Prudence – Tilting Towards Growth:Fiscal deficit estimated at 6.8 per cent of GDP in 2021-22; it is estimated to touch 9.5% in 2020-21. It will be brought down to 4.5 per cent of GDP by 2025-26. What about the Atmanirbhar Bharat Abhiyan? How has it influenced the Budget? The sum and substance of the Atmanirbhar Abhiyan is to promote domestic industry by either preventing imported goods (by raising import duties) from undermining domestic producers or helping domestic companies to source cheap imports (by reducing import duties).  MSMEs and other user industries have been severely hit by a recent sharp rise in iron and steel prices. Therefore, government proposed reducing Customs duty uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels. Further, government revoked antidumping and Countervailing Duties on certain steel products. This allows companies to source cheap imports that acts as raw materials in their production process. Similarly, to help MSMEs in the domestic textile industry, government reduced the basic customs duty on goods like nylon chips, nylon fiber & yarn etc. that acts a raw materials for textile sector. For MSMEs in the leather industry, government withdrew the exemption on imports — in other words, make imports difficult — of certain kind of leathers as they are domestically produced in good quantity and quality, mostly by MSMEs.  Similarly, government raised customs duty on finished synthetic gem stones to encourage their domestic processing. To benefit farmers, government proposed raising customs duty on cotton from nil to 10% and on raw silk and silk yarn from 10% to 15% Overall, with these steps the government hopes that the beleaguered MSMEs and the related informal workforce will receive a boost. Will the Budget help in creating more employment? The upshot of the emerging Budget strategy is that the government would rather like to spend on building capital resources and in doing so “crowd in” private investments, which, in turn, will be the source of new jobs. But that is the logic on paper. In the real world, job creation will take time. For those who lost their jobs during the pandemic or those who could not get their first one, the outlook is still grainy. That’s because economic recovery — especially of the order which creates lots of jobs and quickly — still eludes India. In 2021-22, India will register fast economic growth but the fact is this will only make up for the output lost in 2020-21. It is significant that India was growing by just about 4% (in 2019-20) going into the Covid crisis. Growing at 7% or 8% coming out of it (that is 2022-23 onwards) is not a foregone conclusion. Connecting the dots : Offbudget Borrowing Fiscal Council: Why India needs it? INTERNATIONAL/ ECONOMY Topic: GS-2: Effect of policies and politics of developed and developing countries on India’s interests GS-2: India and its neighbourhood INDIA-SRILANKA: India Out of Colombo Port Project Context: After the strong opposition from trade unions across the country, the Sri Lankan government was forced to renege on a 2019 agreement with India and Japan to develop the strategic East Container Terminal (ECT) at the Colombo Port. Sri Lankan PM announced the operation of the east terminal would be done by Sri Lanka Ports Authority on its own.  How has India reacted? To Sri Lankan PM’s statement that ECT development and operation will be done on its own, a news that was seen as embarrassing the Indian side, India’s first response was that the island nation should not be taking a decision in a unilateral manner on an existing tripartite agreement. What is Sri Lanka’s compensatory offer to India? After the Sri Lankan decision reneging on the 2019 agreement, the country’s cabinet has now approved a proposal to develop the west terminal of the Colombo port as a Public Private Partnership with Japan and India.  Arguments given by Sri Lanka in favour of West Terminal offer are: Commercially, the west terminal offer is better for India as it gives 85% stake for developers of the West Terminal against the 49% in ECT. Geo-politically too, West Terminal is almost the same if security aspect and the necessity to have a port terminal in Sri Lanka is considered West Terminal is no smaller in size or depth compared to the East Terminal Development of the ECT is partially completed while the development of the West Terminal has to start from scratch What made Sri Lanka change its word on ECT? Agreement under earlier government: As per the agreement signed by the former Maithripala Sirisena-Ranil Wickremesinghe administration in 2019, India and Japan together was to hold 49% stake in ECT. Pressure from Colombo port trade unions: President was under pressure as trade unions were protesting opposing privatization of the port and demanded cancellation of the 2019 agreement. Also during the talks with government, trade unions quoted his own presidential manifesto that was contrary to this 2019 agreement. Support for protests from other sections of society: While there were reports and allegations among diplomatic circle that the Chinese had played a role in instigating port unions protest against India’s interest, some 223 Sri Lankan unions from different walks of life, including trade unions and civil societies groups, declared support for the port trade unions demand to cancel the ECT agreement. Will there be similar protests and crises if India accepts the West Terminal offer? Ahead of “unilaterally” cancelling the ECT agreement, the Sri Lanka government also managed to get the written consent of unions in this regard, in which 22 out of 23 Unions signed and gave a letter agreeing to support the government in its plans to develop the West Terminal with private investment. There is a specific point in the consent letter of unions that said: “We will support a good investment decision that the government would take in future in relation to the west terminal.” This is commercially a better deal for Indian Company Adani. And unions had also agreed to mention both east and west terminal decisions in one cabinet paper. ViyathMaga (Professionals for a Better Future), a network of academics, professionals and entrepreneurs, had played a key role in the final round negotiations between the unions and the government, which had led to the latest WTC proposal Connecting the dots : String of Pearl Strategy of China Hambantota Port Project – Leased out to China (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 Consider the following statements: India is the largest producer of Silk. India is the only country in the world that produces all four major varieties of silk. Which of the above is/are correct? 1 only 2only Both 1 and 2 Neither 1 nor 2 Q.2 Ethylene glycol is an industrial compound found in which of the following consumer products:  Automotive antifreeze Ballpoint pens Solvents Plastics Select the correct code: 1, 2, 3 and 4  2 and 3 only 1 and 4 only 1 only Q.3 Pattachitra painting is based in which of the following state/states of India? West Bengal Odisha Jharkhand Maharashtra Select the correct code: 1, 2, 3 and 4  2 and 3 only 1 and 2 only 1 only Q.4 Which of the following are included under the Strategic sector PSUs: Arms & Ammunition of defence equipment Defence aircraft & warships Atomic energy Applications of radiation to agriculture, medicine and non-strategic industry Railways Power Discoms Select the correct code: 1, 2, 3, 4 and 5 2, 3 and 6 only 1 and 2 only 1, 3 ,4 and 6 only ANSWERS FOR 1st  February 2021 TEST YOUR KNOWLEDGE (TYK) 1 B 2 D 3 D Must Read On Union Budget 2021: The Hindu About Budget and its failure to address hunger Pandemic: The Hindu

Feb 2, 2021 Important Articles

[INTERVIEW INITIATIVE] Think, Rethink and Perform (TRP) 2020 for UPSC/IAS Personality Test!

Dear Friends, Just open your television set or connect to youtube for understanding the nuances of budget 2021. Most likely, you will leave more confused and perplexed. Such is the information overload around us, it is common for aspirants to get overwhelmed. While there is no dearth of information, having a reasoned point of view is a different ballgame altogether. Like it or not, but you need to overcome this challenge in the last stage of your UPSC journey. To become a successful civil servant, you need to become a balanced individual first. While it is easy to hide your prejudices and inclinations in the Main examination, there are chances of getting exposed in front of the interview board. While it is not bad to become a thinking individual, there are certain traits that are required in a civil servant. The interview board is absolutely sure about your information base and analytical abilities. What it wants to test is your personality in 20-30 minutes. While such a short time limit may sound unreasonable to test your real strengths and aptitude, you must accept it and take the challenge head on. It is high time that you declutter your mind, become poised and start preparing for the next phase. Your ability to process information and learn complex issues has already been tested by UPSC in the Preliminary and Main stages. In the last stage i.e, the Personality Test, something else is at stake. When we talk about personality, there are certain elements that come to our mind - communication, posture, confidence, expression and so on. One vital element of personality for prospective civil servants is that they are highly opinionated. It doesn’t mean that they are required to have extreme views about issues. What it simply means is that civil servants must have some view, be it their own or borrowed. The problem with most of the aspirants is that while they can articulate their views on myriad number of issues in the Mains examination, they become flummoxed when they have to narrate their views to the interview board. Blame it on months of confinement for preparation or lack of confidence, the issue is real and all pervasive.  The solution to this problem is twofold -  first, preparing your views on a wide array of issues and second, practicing to express your views as effectively as possible. For helping you with this, we are ready with yet another version of our TRP initiative. Under the TRP initiative, we post thought-provoking questions on current affairs. These questions are designed to probe your critical thinking abilities. You will be forced to refer to multiple sources and create a reasoned and balanced view on the issue in question. Thereafter, you are expected to submit your written response. We also expect you to practice your answers in front of the mirror. The more you practice, the more confident you will become. Moreover, practising multiple current affairs will also help you define and balance your thought trajectory to suit the demands of the interview board. We are sure that the questions posted by us will make you a thinking and contemplating individual.   The second set of questions posted in TRP relates to your inner self. Mostly, you are not aware of your own inclinations and you hardly get the time to explore the dimensions of your own personality. When the interview board poses questions on your inclinations and thought process, you start fumbling and that is definitely not a good sign. We remember many candidates fumbling while answering a simple question during the mock interviews as to what made them happy. Imagine, a civil services candidate not being able to give a convincing reply to such a basic question. While there is no guarantee that the interview board will pose such questions, self-awareness is imperative to succeed in the Personalty Test. This is the best time to invest some time on yourself. Start asking those simple yet probing questions to yourself. What makes you happy, what makes you sad, what matters the most to you, what makes you angry, who is your favourite leader and so on. We will help you in this. As part of TRP, we will post many self-awareness questions. We don’t expect you to reply these questions on the portal. We want you to invest 10-15 minutes of your daily time to pose these questions to yourself and try to find the answers. Believe us, this simple exercise will transform you as a person and also as a candidate, making you more self aware, confident and relaxed.  The initiative will start on 4th Feb. We will post the questions 2-3 times a week. Make TRP an integral part of your interview preparation journey and we are sure that you will shine.  Interview preparation is one of the most neglected part. Generally, a student who is confident of clearing prelims will start with the mains preparation. But it is not the same with interview preparation. If you are confident of clearing Mains, start with your interview preparation right away. Please fill up the Google form given below. Students who fill the form will be added to a telegram group so that there can be healthy discussions with other students who will be appearing for the Interview/Personality Test. Also, Mohan sir will be interacting one on one with all the students who will be appearing for the same. REGISTER HERE – CLICK HERE Thanks and All the best :) IASbaba

Feb 2, 2021 RSTV Video

Joint Use of Chabahar Port – The Big Picture – RSTV IAS UPSC

Joint Use of Chabahar Port Archives TOPIC: General Studies 2 International Relations In News: The first Trilateral Working Group Meeting between India, Iran and Uzbekistan on joint use of Chabahar Port was held virtually recently.  Discussion Points India welcomes the interest of Uzbekistan to use the Chabahar port as a transit port. This will open up economic opportunities for the traders and business community of the region.  Besides Uzbekistan, other Central Asian countries have also shown interest in using this port. India wants to cooperate closely with regional countries on this issue.  During the meeting, the participants discussed joint use of Chabahar Port for trade and transit purposes and enhanced regional connectivity. All sides also welcomed India’s proposal to hold “Chabahar Day” on the side-lines of the International Maritime Summit scheduled to be hosted by India in January 2021. The meeting was held as a follow up of decisions taken during the virtual summit held between Indian Prime Minister and President of Uzbekistan recently. Chabahar Port The port is being developed by India, Iran and Afghanistan to boost trade ties among the three countries in the wake of Pakistan denying transit access to New Delhi.  Chabahar Port is a seaport in Chabahar located in south-eastern Iran, on the Gulf of Oman.  It serves as Iran’s only oceanic port, and consists of two separate ports named Shahid Kalantari and Shahid Beheshti. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the port can be easily accessed from India's western coast, bypassing Pakistan.  It is considered to be a major transit point to connect with several Central Asian countries. The port of Chabahar is located on the Makran coast of Sistan and Baluchistan Province, next to the Gulf of Oman and at the mouth of Strait of Hormuz. It is the only Iranian port with direct access to the Indian Ocean. Being close to Afghanistan and the Central Asian countries of Turkmenistan, Uzbekistan etc., it has been termed the "Golden Gate" to these land-locked countries. India and Chabahar Port In May 2016, India and Iran signed a bilateral agreement in which India would refurbish one of the berths at Shahid Beheshti port, and reconstruct a 600 meter long container handling facility at the port. The port is intended to provide an alternative for trade between India and Afghanistan. This port is 800 kilometers closer to Afghanistan than Pakistan's Karachi port. In October 2017, India's first shipment of wheat to Afghanistan was sent through the Chabahar Port. Significance of Chabahar Port  It gives a boost to India’s bilateral ties with Iran which is a major oil supplier for India.  It will give India access to Afghanistan, Russia and Europe, thus circumventing Pakistan  The port and the rail project (Chabahar to Zahedan to Zarang near Afghanistan border) will enhance connectivity, energy supplies and trade  The port is also a key link in the International North South Transport Corridor (INSTC), a multi-modal network of ships, rail and road routes to move freight between India to Russia via Iran.  It will facilitate India’s role in Afghanistan’s development through infrastructure and education projects.  It is the nearest port to India on the Iranian coast, which provides access to the resources and markets of Afghanistan and Central Asia. It is located 76 nautical miles (less than 150km) west of the Pakistani port of Gwadar, being developed by China; this makes it ideal for keeping track of Chinese or Pakistani military activity based out of Gwadar. Picture Credit: http://www.livemint.com/r/LiveMint/Period2/2016/05/24/Photos/G-iraqmap(modi)web.jpg Connecting the Dots: The signing of the much anticipated bilateral pact with Iran for the development of Chabahar port is a significant step towards securing India’s strategic and economic interests. Comment. String of Pearls

Feb 2, 2021 TLP Mains Answer Writing

IASbaba’s TLP (Phase 1 – ENGLISH & हिंदी): UPSC Mains Answer Writing – General Studies Paper 2 Questions [2nd February,2021] – Day 20

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 [2nd February 2020] – Day 20 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 are the factors leading to high numbers of tax litigation in India? What are its implications for the business climate? What measures have been taken recently to reduce tax litigations? Examine. भारत में कर मुकदमेबाजी की उच्च संख्या के कारण कौन से कारक हैं? व्यावसायिक जलवायु के लिए इसके निहितार्थ क्या हैं? कर मुकदमों को कम करने के लिए हाल ही में क्या उपाय किए गए हैं? जांच करें। 2. What are the ordinance making powers of the executive? Under what circumstances can the ordinance making powers be used? Examine.  कार्यपालिका की अध्यादेश लागु करने की शक्तियाँ क्या हैं? किन परिस्थितियों में अध्यादेश बनाने की शक्तियों का उपयोग किया जा सकता है? जांच करें।  3. Discuss the underlying principles of the doctrine of separation of powers. What are the current issues related to the doctrine? शक्तियों के पृथक्करण के सिद्धांत के अंतर्निहित सिद्धांतों पर चर्चा करें। इस सिद्धांत से संबंधित वर्तमान मुद्दे क्या हैं?  4. What are your views on this year’s budget proposals? Is it a progressive budget?Critically comment. इस वर्ष के बजट प्रस्तावों पर आपके क्या विचार हैं? क्या यह एक प्रगतिशील बजट है? समालोचनात्मक टिप्पणी करें।  5. What are the key pillars of ‘Atmanirbhar Bharat’. Discuss. ‘आत्मानिर्भर भारत ’के प्रमुख आधार क्या हैं? चर्चा करें। 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 :)

Feb 2, 2021 Ace The Prelims (ATP)

Ace The Prelims (ATP) – 2021– PRELIMS – [2nd February, 2021] – Day 26

ARCHIVES Hello Friends, Welcome to IASbaba’s Ace The Prelims (ATP) – 2021 – PRELIMS & MAINS – [2nd February, 2021] – Day 26   UPSC Quiz - 2021 : IASbaba's Daily Current Affairs Quiz 2nd February 2021 UPSC CSAT Quiz – 2021: IASbaba’s Daily CSAT Practice Test – 2nd February 2021 UPSC Static Quiz – 2021: IASbaba’s Daily Static Quiz (PYQs) – Environment and Sci & Tech [Day 26]   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

Feb 2, 2021 Daily Static Quiz

UPSC Static Quiz – 2021: IASbaba’s Daily Static Quiz (PYQs) – Environment and Sci & Tech [Day 26]

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

Feb 2, 2021 IASbaba’s Daily CSAT Quiz

UPSC CSAT Quiz – 2021: IASbaba’s Daily CSAT Practice Test – 2nd 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

Feb 2, 2021 Daily Prelims CA Quiz

UPSC Quiz - 2021 : IASbaba's Daily Current Affairs Quiz 2nd 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

Feb 1, 2021 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

Feb 1, 2021 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