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TLP Mains 2020

SYNOPSIS [Day 2]: IASbaba's TLP 2020-UPSC Mains Answer Writing (General Studies) - High Ordered Thinking (HOT) Questions 

SYNOPSIS [Day 2]: TLP 2020- UPSC Mains Answer Writing (General Studies)  1. India’s labour laws have been the most politically stubborn areas to reform, standing in the way of China-style industrial acceleration. Comment. Demand of the question: It expects students to write about need of labour reforms in industrial acceleration of India along with the critical assessment of current affairs about labour reforms and capacity of labour reforms to expedite industrial acceleration.    Introduction: The International Labour Organisation (ILO) has informed trade unions of India that its Director-General has expressed concern and urged Prime Minister of India to ‘send a clear message’ to the Central and State governments to uphold international labour laws after the recent dilution of laws by some States. Government of India caught between attracting foreign investors relocating from India and concerns over exploitation of lower strata of population due to forced closure due to Covid-19.   Body: The reforms of 1991, a major milestone that they are in India’s post-Independence history, primarily focused on the demand side of the economy. But government continued to exercise major control over land, labour and material resources, and nowhere was it more throttling as in the laws and policies governing labour. Need of labour reforms: The sheer complexity of India’s labour law regime, which comprises more than 150 legislations with conflicting provisions in different statutes and archaic obligations flowing from them, was unfathomable. Full compliance was virtually impossible. No other major economy had such a legal regime in place, all in the name of protecting weaker sections of the working force. It was these laws that made India miss the ‘manufacturing bus’ of the 1980s. The continued presence of restrictive labour laws, however, continues to make India an unfavourable destination for manufacturing as compared to Southeast Asian economies like Vietnam. Labour being concurrent subject, variation of labour laws and rules in different states increase complexity for foreign players looking towards nationwide consistency. However, not all changes in the labour laws are reformist; free hands to employers in such pandemic situation might increase the vulnerability of labour class to disease, hunger and poverty.  China-style industrial acceleration: China being authoritarian country used its cheap labour to attract investments in the 1980s and 1990s, while India only talked about labour reforms since 1994 and failed to bring consolidation even today. China style industrial acceleration was majorly based on the export led growth model. In today’s changed world of protectionism mere imitation of china may not be useful.  As per the World Bank survey, 2014, employers did not rate labour law regulations as the top five or seven or 10 irritants in India. There is limited evidence that relaxing labour laws alone will increase employment. It has been argued that though labour reforms have been tried across some States and also in Special Economic Zones, but this has not resulted in a significant rise in employment. Contrary to the popular narrative, while India rates 58th out of 140 countries in the WEF’s Global Competitiveness Index, it ranks 33rd on the flexibility of labour markets. In comparison, China ranks 62nd on labour markets, though it is 28th overall. Clearly, lack of competitive labour markets is not the main factor driving India’s poor competitiveness and there is little evidence that relaxing labour laws alone will attract overseas investment, especially from the companies that are looking to leave China. Conclusion: There is need to complete the process of creating a comprehensive integrated legal framework for labour, light on compliance and administrative requirements but ensuring protection of worker rights, that had already been initiated by the present government. 2. The toxic gas leak in Visakhapatnam that killed 11 people and made hundreds ill shows lessons haven’t been learned from the 1984 Bhopal tragedy. In this light, suggest a blueprint for preventing such disasters in the future. Demand of the question: It expects students to write about similarities between Bhopal gas tragedy and recent gas leak in Vishakhapatnam and reasons behind inability to arrest such incidents. Students should also write suggestions to avoid such incidents in future.  Introduction: LG Polymers has claimed that styrene gas began leaking around 2.30 am from a storage tank containing 1,800 tonnes of the volatile compound. The gas spread through five densely populated villages, killing people and cattle, including buffaloes, dogs and even birds. Body: According to the National Disaster Management Authority (NDMA), in the recent past, over 130 significant chemical accidents have been reported in the country, which have resulted in 259 deaths and caused major injuries to more than 560 people. Lessons not learnt: Like in Bhopal gas tragedy, there was no warning from the factory. The Hazardous Chemicals Rules, 1989, stipulate exacting conditions for storage of chemicals like styrene. LG Polymers claims that the source of the leak is its storage tank, and that prolonged disuse had created conditions that led to the disastrous leak. Even in Bhopal, the magnitude of the disaster was a direct result of storing large quantities of a volatile toxin in a densely populated location  LG Polymers is no stranger to controversy. In 2000, a reactor blast shook the surrounding villages and fuelled their anxiety. People ran away, and no lives were lost. In 2017, after repeated complaints to the Andhra Pradesh Pollution Control Board failed to provoke any reaction. In another similarity with Bhopal, LG Polymers too handed over critical operations to untrained casual workers.  Background concentration of styrene in urban air is between 0.06 and 4.6 parts per billion. Styrene toxicity has been recorded mainly among workers and not the general population. The levels required to kill adults and buffaloes outside the fence-line is bound to be incredibly high. Steps taken by government to prevent chemical accidents: Bhopal Gas Leak (Processing of Claims) Act, 1985, which gives powers to the central government to secure the claims arising out of or connected with the Bhopal gas tragedy. Under the provisions of this Act, such claims are dealt with speedily and equitably. The Environment Protection Act, 1986, which gives powers to the central government to undertake measures for improving the environment and set standards and inspect industrial units. The Public Liability Insurance Act, 1991, which is insurance meant to provide relief to persons affected by accidents that occur while handling hazardous substances. The National Environment Appellate Authority Act, 1997, under which the National Environment Appellate Authority can hear appeals regarding the restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act, 1986. National Green Tribunal, 2010, provides for the establishment of a National Green Tribunal for effective and expeditious disposal of cases related to environmental protection and conservation of forests. Blueprint to avoid such incidents: Ease of doing business should be balanced with environmental sensitivities: The government wants to give fast-track clearances to companies without gauging environmental impact of their projects properly to improve ease of doing business however environmental cost and threat to human life could be disproportionate. Therefore, environmental sensitivity should be given utmost priority in clearance of chemical plants.  Strict enforcement of laws: No permission for chemical plant around densely populated areas. Recurrent audit by pollution control bodies and regulators about the fulfilment of required standards and strict actions if not adhered to guidelines. Responsibility fixation: Erring company officials often go unpunished in the name of unavoidable scenario. Responsibility fixation could help to zero down negligence and avoid such tragedies in future.  Improved Monitoring at industry level: A fixed gas leakage detection system should be in place at strategic points throughout the facility. Portable gas leak detectors should also be used to detect leaks remotely and notify the facility to ensure quick and safe evacuation. More effective methods of prevention are to gather data from previous leaks and turn that into practical information to implement new safety procedures. Keeping Detailed Records: When leaks do happen, it’s important to keep detailed data relating to the size and location of the leak. By understanding the scale of the problem, industries will be prepared to tackle any new issues that might spring up. The details of records will allow fixing infrastructure problems internally and making improvements to current safety procedures, doing so in a faster and more permanent fashion. Safety and Preparedness Goals: Need to keep employees well-versed in what they should do in the event of a leak.  Early warning system: Use of technology to circulate early warning messages, siren or with other innovative means to surrounding areas could reduce the death toll in unavoidable accidents.   Conclusion: Government should set an example by dealing the situation in strict manner rather than undermining severity. It is a grim wake up call for the chemical industry to acknowledge and fulfil its responsibility to respect human rights.  3. What do you understand by ‘cultural diplomacy’? What dividends can India reap through sound cultural diplomacy? Examine. Demand of the question: It expects students to write about the concept of ‘cultural diplomacy’ and potential of cultural diplomacy in national interest along with the limitations of it as diplomatic tool in international relations.  Introduction: Cultural diplomacy is an important dimension of a country’s soft power. The international impact of India’s soft power was felt long before the term found place in popular parlance in the 21st century. Indian arts, culture and spiritualism have attracted people from all around the world for centuries. Body: Cultural diplomacy: Cultural diplomacy is an important instrument in regional and international cooperation and is of particular relevance in our region i.e. South Asia. Culture and cultural diplomacy have emerged as the force to connect, to build bilateral relations and to heal the raptures created by history and politics.  The five pillars of cultural diplomacy, used in a strategic sense are Samman (dignity), Samvaad (dialouge), Samriddhi (shared prosperity), Suruksha (regional and global security), and Sanskriti evam Sabhayata (Cultural and civilizational links). These are interlinked with India’s broader political and economic goals. It is internationally recognised that one of India’s significant global contribution’s like, ‘Vasudhaiva Kutumbakam’ was among the first precursors of Global Citizenship as it is understood today – the concept that all individuals are collectively responsible towards each other and their shared future. India’s soft power as represented through her vibrant cultural and civilizational heritage and through her Diaspora spread worldwide, serves as a powerful reminder that India’s values of secularism, tolerance, inclusiveness and cross fertilisation of cultures which are an intrinsic part of our civilisation, are more relevant than ever before in the uncertain international scenario of today. The internet, the social networking sites, our television channels, Indian movies, especially Indian film industry and visits by acclaimed musical and cultural troupes and theatre groups have contributed to the cultural connectivity across borders. Cultural bonding can be one of the ways to prevent conflict and promote peace. Potential of cultural diplomacy: Recognition of Indian ancient knowledge at world stage: One of its important manifestations in today’s world is the UN General Assembly recognised 21st June as International Day of Yoga. Indian classical dance in various forms which enjoy a high degree of world-wide acclaim and appreciation.  Confidence Building Measure: The joint commemoration by India and Bangladesh of Gurudev Rabindranath Tagore’s 150th birth anniversary and Nazrul’s 100th birth anniversary. It is unique that both the Indian and Bangladeshi national anthem has been composed by Rabindranath Tagore.  Shared History and posture of humility: Cultural charm and use of humility often help win hearts of common people of international community.   Regional integration: India has revived the old Buddhism tourism circuit to link up with Nepal, Sri Lanka, Bhutan and other States in our wider neighbourhood which had Buddha’s footprints. Thus, India’s culture and soft power are an example of how both help States to overcome years of mutual mistrust and push forward the process of regional integration. Tourism being economic driver: Another example is the ‘Ramayana Circuit’. PM Narendra Modi and his Nepalese counterpart jointly inaugurated direct bus service between Janakpur (Nepal) and Ayodhya (India). Cultural diplomacy during Covid-19 times: ‘Namaskar’ and ‘vanakkam’ have come into sudden fashion in times of physical distancing, while fighting this epidemic. It is an old civilizational greeting from India, which means that I, as an individual, salute the sacred and the divine in you. Gesture of just retired India’s permanent representative to UN to bid adieu his formal commitments with ‘Namaste’ was excellent example of cultural diplomacy.  People to people contact: The diaspora too is an integral part of the country’s soft-power story. Indiaspora, a group of Indian entrepreneurs in the US, has donated close to US$ 800,000 (and counting) for food security programmes in both India and the United States, which was part of a campaign titled, ’Chalo Give for Covid-19’. As part of the initiative, they have also successfully fed close to six million people in both countries thus far.  India dreams of becoming ‘vishwaguru’- global teacher in every aspect of human life. However, hard politics at home may undo the efforts of cultural diplomacy at international level. Unfortunately cultural diplomacy is still regarded to be at a lower level in most Foreign Offices than traditional diplomacy which is based on a country’s hard power depending on its strategic and military options. Concerns of Sovereignty undermine initiatives of cultural diplomacy: Nepal’s recent cartographic assertion is an example of limitations of cultural diplomacy. Blockade of 2015 on Indo-Nepal boundary also seen by Nepalese as India’s hard power tactic which significantly reduced the popularity and goodwill of India among Nepalese populations. Political statements stigmatising Bangladeshi people as illegal migrants in India during CAA-NRC debate proved counterproductive to the India-Bangladesh bonhomie at government level. Domestic political issues may limit influence gathered over long time.     Shared history might bring back the uneasy historic facts which might unnecessarily create bone of contention.  Even with saying of “speak softly and carry a big stick: you will go far”, hard power becomes inevitable as last resort in diplomatic efforts. Cultural diplomacy cannot rely on soft power and symbolism only.   Conclusion: India needs to disseminate soft power through the institutions of cultural diplomacy of our country so that we can build bridges across borders and across continents for greater international understanding, peace and harmony.  TLP_HOT_Synopsis DAY_2 PDF

MindMaps

MIND-MAPS: FUNDAMENTAL RIGHTS PART 2 & 3 – General Studies 2

MIND-MAPS: FUNDAMENTAL RIGHTS PART 2&3 – General Studies 2 For Previous Important Topics (Mind Maps) - ARCHIVES Hello Friends, Recently we have come up with a NEW INITIATIVE - BRAINSTORMING THROUGH MIND-MAPS! Mind-map is an incredible powerful thinking tool, an innate human language that will have immense benefit in your preparation. The main idea is to brainstorm different aspects of an issue - think in multi-dimensions; what we call 360 degrees of an issue. The whole of this exercise will unleash your creativity to push your brain cells to recall the data learnt and to make it more relevant for your preparation. It will help you to make your Revision and Retention a far better apart from giving you more Clarity in the topics/issue at hand and improve your Concentration. You can see the drastic impact mind-maps will have in a few weeks, provided you are regular with this exercise. So here we are with Today’s TOPIC! FUNDAMENTAL RIGHTS PART 2&3 - General Studies 2 NOTE – Instructions to download Mind Maps/Images Right Click on the image and ‘Open image in new tab’ Remove/Delete the resolution part from the URL. Eg. “-1536x757” and Press Enter/Load Again Right Click and Save Image As/Download (You’ll get the maximum resolution) FUNDAMENTAL RIGHTS PART 2&3  YOUR PARTICIPATION? – VERY IMPORTANT Unlike what we were doing before, in this initiative we want students to learn and brainstorm through mind-maps (It is not necessary that you use a software/tool to design mind maps. You can prepare mindmaps using a pen and a sheet of paper). We will share the final printable mind map on every Tuesday, Thursday & Sunday (3 times a week). We will also provide specific inputs on your mind maps to improve your skill of mind mapping.  So, Enlist the topics you feel as important for MAINS Issues in Current Affairs you find difficult to understand Share your own mind-maps on the given topics in the comment section of the post published on TUESDAYS, THURSDAYS, and SUNDAYS (every week). We will provide specific inputs on your mind maps to improve your skill of mind mapping. TOPICS FOR THIS WEEK* - Fundamental Rights will be covered in four mind maps To Know More about the initiative, Benefits and How to use a mind-map ->CLICK HERE Together we can, we will. The strength of the community is more powerful than individual effort. We have started it. You have to strengthen it” You can Start sharing Your Mind-maps (get feedback from IASbaba) & Topics of your interest in the comment section below!!   Thank You IASbaba

IASbaba's Courses

IASbaba’s Programs/Courses – 2021: ILP 2021, AIPTS 2021, TLP 2021 – Prelims, Mains Integrated Programs and Test Series for UPSC Civil Services Examination 2021 – Comparison Chart!

Dear Friends, Every success story is similar. It starts with an aspiration of an iron-willed person who is supported by a knowledgeable and determined mentor, who keeps pushing his mentee to perform better than the rest, struggle of mentee to maintain his calm in ups and downs, and finally a heartwarming Triumph. As you already have an aspiration, this story can be yours! Amidst quarantine the best mode to prepare is to prepare through online mode with self-study. The only hurdle with this method is that it is difficult to find reliable sources to study and there is lack of guidance. We at IASbaba try to remove all these barriers for you so that you can get the best guidance, study material, test series and mentorship at the same place. We have even provided a model daily schedule to be followed by aspirants so that they can use their time with maximum efficiency.   In order to be successful, following aspects of preparation should be in place – 1. Plan – Plan is the soul of any preparation without a plan you are just lost in a desert without a direction. Plan helps you in understanding how much you have progressed and it will bring discipline in your preparation. Our Detailed Course plan will help you in this aspect. 2. Practice Questions – After reading something you should be able to know whether you are able to use that information in solving questions or not. Basically application of what you have read. This completes your learning process. Also, it will help you in maximising your score in the exam. IASbaba’s Prelims and Mains Test Series will take care of that. 3. Study Material – With so many books and material available in market, students get confused as to what to read and what to miss. It is always advised to stick to minimum resources and keep revising them rather than reading too many sources and not revising them. IASbaba’s Value Added Notes (VAN) and Babapedia is one of the best resource you can trust! 4. Guidance – In the market you’ll find more people misguiding you rather than proper guidance. Many of your seniors who are preparing must be telling you that if you are not referring to a particular source than you can never qualify and then the other person will ask you to read something else. You need a trustworthy guide/ mentor who can project you in the right direction. IASbaba is known for it’s quality guidance and mentorship. A dedicated mentor who has an experience of all the 3 stages (Prelims, Mains, Interview) of UPSC exam will make sure you are on the right path to achieve your dream! 5. Emotional Intelligence – It is required to keep yourself motivated. Since the process is very long it is very easy to falter and get frustrated. These are the times when you need to tell yourself to get rejuvenated and start afresh. You need to keep reminding yourself of the bigger picture. Ofcourse your mentors will play their part here as well. But the major role is played by YOU here!   Keeping all these aspects in mind we have designed our programs so that you can have a One-stop destination for UPSC preparation!   Following are our Courses/Programs 2021 targeting different needs of Students – 1. Integrated Learning Program (ILP) Basic, Plus(+), Connect+ -> CLICK HERE 2. IASBABA का इंटीग्रेटेड लर्निंग प्रोग्राम (ILP) ऑनलाइन – 2021 – नए प्रतिमानों एवं अद्वितीय विशेषताओं के साथ – अब हिंदी माध्यम में भी – प्रवेश आरंभ !!    -> CLICK HERE 3. All India Prelims Test Series (AIPTS)  (ENGLISH & HINDI(हिंदी)) ->  CLICK HERE 4. Think Learn and Perform (TLP) Connect, TLP+  -> CLICK HERE FAQ's ILP & AIPTS 2021 -> CLICK HERE FAQ's TLP CONNECT/PLUS 2021-> CLICK HERE COMPARISON CHART OF ALL THE IASbaba's COURSES for 2021  -> CLICK HERE P.S: You can take an informed decision by choosing the respective course according to your needs. If there is one thing that separates a person who qualifies the exam and a person who does not is DISCIPLINE!! One thing that, we can assure you is, we will give our 100% and we expect the same from our students. So what are you waiting for? Come, join us .... Together we can create history !! We are the ship and you are the sailor.  We will make sure that the ship is strongly built to sail you through all the up’s and down’s in the journey. But finally it is YOU, the sailor who has to manoeuvre and reach your destination! We reiterate our AIM – “To help an aspirant preparing in the remotest part of the country to secure Rank 1”   Thank You IASbaba    

Catharsis -Unlock Your Talent & Creativity: ART by NAMASTE INDYEAH & SKETCH by RAVI SHASTRI

ARCHIVES Hello Friends, You must be aware of the term ‘catharsis’. It is the process of releasing and thereby providing relief from, strong or repressed emotions. Recently we have launched a new initiative by the name Catharsis -Unlock Your Talent & Creativity! Today's work is ART by NAMASTE INDYEAH & SKETCH by RAVI SHASTRI ! Well done, Keep it up !! ART by NAMASTE INDYEAH SKETCH by RAVI SHASTRI ! Be creative and find your catharsis in whichever form of creativity you are comfortable with.  It could be anything- a song, a painting, a poem, a story, a dance performance, rangolis, jokes/humor, culinary skills, mimicry and whatnot. There is no limit to creativity. Just unleash and share it with everyone! Why don’t you share your moments of catharsis with us? UPSC is not only about academics but personality as well. And your personality is shaped by the creativity that you possess.   We encourage you to keep the comment section alive by sharing your talents and also by commenting and encouraging the talent of your peers. We are also going to be a regular visitor here and will keep on posting the creative works by our talented team members and staff. NOTE- You can also nominate by tagging anyone (if you know about the talent of your friend or anyone) 🙂 You can share your talent/creativity with us on support@iasbaba.com P.S: Kindly share it in a format that can be published on the website. We believe each one of you have some hidden talent. It’s time that you explore more about yourselves and remain positive throughout this journey. Make the best use of this opportunity! Thank You IASbaba

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 26th MAY 2020

IAS UPSC Prelims and Mains Exam – 26th May 2020 Archives (PRELIMS + MAINS FOCUS) ReStart Programme by Andhra Pradesh government for MSMEs  Part of: GS-Prelims and GS-II – Welfare Schemes In News: Recently, the Chief Minister of Andhra Pradesh launched a new programme ‘ReStart’ to support the Micro, Small and Medium Enterprise (MSME) sector in the State. Key takeaways The government will spend ₹1,100 crore on revival of the sector.  It is expected to benefit 98,000 units that can provide employment to more than 10 lakh people. A special fund of ₹200 crore to provide input capital loan to the firms at low interest rates. The minimum power demand charges for the months of April, May and June, shall be waived off. The government will purchase around 360 products from the MSMEs.  Payments would be cleared in 45 days. Skills required by the industries (MSMEs) will be imparted through Skill Development Colleges. Birthplace of Purandara Dasa to be researched upon Part of: GS-Prelims and GS-I – Culture  In News: Department of Archaeology, Karnataka will commence field research work to explore archaeological evidences regarding the birthplace of Purandara Dasa.  It was widely believed earlier that he was born in Purandharagad, Maharashtra.  However, it is also claimed that he belonged to Malnad region of Southern Karnataka.  Important value additions  Purandara Dāsa (1484 – 1565)  He belonged to the Haridasa movement (servant of Lord Hari or Lord Krishna)  He was a renowned composer of Carnatic music, a Vaishnava poet, a saint and a social reformer. He was a disciple of the Dvaita philosopher-saint Vyasatirtha.  He made Srimad Bhagavatam available to everyone in simple and melodious songs. He formulated the basic lessons of teaching Carnatic music by structuring graded exercises known as Svaravalis and Alankaras.  He is widely referred to as the "father" of Carnatic music in honour of his significant contributions to Carnatic music,  He is noted for composing Dasa Sahithya.  Earth's magnetic field weakens  Part of: GS-Prelims and GS-I – Geographical phenomenon In News: As per the reports, the magnetic field around the earth, on an average, has lost almost 10% of its strength over the last two centuries.  The magnetic field of the earth protects us from the solar radiation. Key takeaways  A rapid shrink has been observed in the South Atlantic Anomaly (SAA).  One most speculated reason behind this is that there is a chance that the time for Earth's pole reversal is approaching.  Pole reversal happens when the north and south magnetic poles flip.  This flip does not occur immediately or suddenly.  It takes place over centuries and while it is taking place, there would be multiple north and south magnetic poles during this period, all around the planet. This is not the first time for the  pole reversal to take place. These reversals take place roughly every 250,000 years.  This is not going to affect or alarm the general public. However, It is causing technical difficulties for various satellites and spacecrafts.  As the magnetic field becomes weaker, charged particles from the cosmos can penetrate through to the altitudes at which low-Earth orbiting satellites fly. Important value additions  South Atlantic Anomaly (SAA) SAA is a stretch between Africa and South America.  It is an area where the Earth's inner Van Allen radiation belt comes closest to the Earth's surface.   The SAA is the near-Earth region where the Earth's magnetic field is weakest relative to an idealized Earth-centered dipole field. A Van Allen radiation belt It is a zone of energetic charged particles, most of which originate from the solar wind, that are captured by and held around a planet by that planet's magnetic field. Earth has two such belts and sometimes others may be temporarily created. Image source: Click here Miscellaneous Number-18 - Flying Bullets The Indian Air Force (IAF) is set to operationalize its squadron called the Number-18 - Flying Bullets with a fleet of the Light Combat Aircraft, LCA Tejas at its Sulur base near Coimbatore.  It will be launched by the Chief of the Air Staff, Air Chief Marshal. It will be the second Indian Air Force squadron to operate with the modern multi-role light fighter aircraft. The No.18 Squadron was formed in 1965.  It has the distinction of being the first to land and operate from Srinagar.  It was revived on the 1st April 2020 at the Sulur base. The LCA Tejas is a tailless, fourth generation, compound delta-wing aircraft developed by the Hindustan Aeronautics Limited.  The supersonic combat aircraft is considered the lightest and the smallest of its kind. (MAINS FOCUS) ECONOMY/ GOVERNANCE Topic: General Studies 3: Indian Economy and issues relating to planning, mobilization, of resources  Government policies and interventions for development in various sectors  The problem with the liquidity push Context: The government’s relief-cum-stimulus amounting to 10% of GDP has relied heavily on measures aimed at pushing credit to economy. The Liquidity push In the wake of economic crisis unleashed by COVID-19, Union Government’s agenda of “self-reliant India” has identified land, labour, laws and liquidity as focus areas. In economic and business parlance, liquidity refers to ease of access to money. In periods of crisis, individuals, small businesses, firms, financial institutions and even governments tend to experience a liquidity crunch Relaxing that liquidity crunch is a focus of the government’s crisis-response package. Why the need for pushing credit? The thrust is to get RBI and other public financial institutions to infuse liquidity and increase lending by the financial system This would ensure that businesses big and small, use borrowed funds to lend to others, make pending payments and compensate employees  Also, this would increase the money in the hands of consumers driving demand Thus, increased liquidity addresses both demand and supply side of economic cycle, reviving demand, investment and expenditure Enhancing liquidity is thus considered as productive as direct transfers to the poor. What is the focus area of liquidity transmission? The main intermediaries being enlisted for the task of transmitting liquidity are the banks, with NBFCs constituting a second tier Among the first steps taken by the RBI was the launch of special and ‘targeted’ long term repo operations (TLTROs) First round of such operations, called for investment of the cheaper capital in higher quality investment grade corporate bonds, commercial paper, and non-convertible debentures. This allowed big business access to cheap capital The second round was geared to saving NBFCs, whose balance sheets were under severe stress even before the COVID-19 strike The COVID-19 package identified more intermediaries like SIDBI, NABARD, NHB that could increase liquidity in different sectors Also, in some instances the government offered them partial or full credit guarantees in case their clients defaulted Challenges with liquidity transmission Ineffective: There is little evidence to suggest that first round of RBI’s TLTROs aimed toward big business triggered new investment decisions. This is because they used the cheap capital to substitute for past high-cost debt or finance ongoing projects Practical Challenges: Given the circumstances, the liquidity push, even if partially successful, would only culminate in eventual default, as borrowers use the debt to just stay afloat in the absence of new revenues. Banks were reluctant about lending to NBFCs/MFI, because of fears that their clients could default in repayments due to weak business cycle. Ex: Franklin Templeton issue  Weak Transmission: Those who can access credit would either not borrow or only do so to protect themselves and not use the funds either to pay their workers or buy and stock inputs, due to grim economic outlook Medium term issue: Even after the lockdown is lifted, the compression of demand resulting from the loss of employment and incomes would be considerable.  Inadequate Fiscal Measures: Demand decline would be aggravated by the fact that spending by a government would fall sharply because of a collapse in revenue collections. Way Ahead New and additional transfers to people in cash and kind Increased wage subsidies and enhanced spending on employment programmes Debt financed spending by the government, with borrowing at low interest rates from the central bank or a “monetisation” of the deficit Connecting the dots: Taper tantrum by US Fed in the wake of post-2009 financial crisis Keynesian Economics in the wake of Great Depression INTERNATIONAL/ SECURITY Topic: General Studies 2,3: India and its neighbourhood relations  External Security threats to India Delhi and complex geopolitics of Pashtun lands Context: USA has called on India to open a political conversation with the Taliban. There was also a signal from the Taliban that it is eager for a productive relationship with India Taliban- A brief history Taliban – considered as Terror organisation in Indian Diplomatic circles- is a conservative religiously orthodox political organisation which uses violence as strategy to achieve its objectives Taliban which was ousted from power by US in 2001 has been engaged in a civilian war against Afghanistan government (ally of US) US troops stationed in Afghanistan since 2001 has been losing ground to Taliban and wants an exit from country. The recent US-Taliban deal has emboldened Taliban and given it an international recognition and legitimacy India and Taliban India has historically sided with Northern Alliance- an opposition to Taliban. Due to Taliban’s close nexus with Pakistan’s ISI, India is strategically opposed to it Some argue that there is no reason for Delhi to join the international trend to embrace the Taliban, in the wake of US-Taliban deal They argue that when the Taliban becomes a peaceful entity and joins the quest for a political settlement with Kabul,Delhi should have no objection to direct talks. Should India have direct talks with Taliban? The question of Delhi opening a dialogue with the Taliban is a tactical issue focused on when, how and on what terms. But the Taliban remains an important sub-set of the larger and more strategic Pashtun question that holds the key to India’s enduring interest in Afghanistan What is India’s interest in Afghanistan? Promoting a peaceful, independent and a sovereign Afghanistan that is not a subaltern to the Pakistan army. This ensures a safer regional environment and better prospects for Indian trade to Central Asia & Europe through Afghanistan What is Pashtun issue in Afghanistan? The Pashtuns constitute nearly 42 per cent of the population.  The sizeable Afghan minorities include 27 per cent Tajiks, 9 per cent each of Hazaras and Uzbeks. The Taliban, an essentially Pashtun formation, had brutally crushed the minorities during its brief rule in the late 1990s. The core of stability in country is reconciling the interests of multiple ethnic groups in Afghanistan especially between Pashtuns and minorities The problem of constructing internal balance in Afghanistan has been complicated by Pakistan’s meddling, which is driven by unreasonable fear and ambition. Complicated relationship between Pakistan & Pashtuns – Opens a Strategic space for India Pashtuns who are majority in Afghanistan (need their support for Pakistan’s influence) are however minority in Pakistan (clashes with Pakistan’s majority) The Pashtun population is estimated to be around 15 million in Afghanistan and 35 million in Pakistan. Although Pashtun separatism has long ceased to be a force in Pakistan, Islamabad finds the Pashtun question re-emerge in a different form. Also, the Taliban has never endorsed the Durand Line as the legitimate border with Pakistan A stronger Taliban will push Pashtun Nationalism across the border Conclusion Delhi can’t escape the complex geopolitics of the Pashtun lands. That the Taliban wants to talk to India and Pakistan brands Pashtun leaders as Indian agents only underlines Delhi’s enduring salience in Afghanistan. Also, those calling for direct engagement with the Taliban say that Delhi can't ignore such an important force in Afghan politics Connecting the dots: Operation Enduring Freedom Rise and decline of ISIS- Role of International Coalition (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 For which of the following sector has Andhra Pradesh government launched ReStart program? MSME  Bank  Farmers  Automobile  Q.2 Consider the following statements regarding ReStart program recently launched by the Andhra Pradesh government?  The minimum power demand charges for April, May and June months shall be waived off.  The government will purchase products whose payment will be cleared in 60 days. Which of the above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2  Q.3 Consider the following statements with regards to the aircraft Tejas: It is a Supersonic aircraft. It is considered as the lightest and the smallest of its kind. Which of the above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2  Q.4 Purandara Dasa belonged to which of the following movement?  Bhakti movement  Haridas movement  Dharma Dasi Cult  Mahadevi movement Q.5 South Atlantic Anomaly is a stretch between which of the following continents?  South America and North America  North America and Africa  Africa and South America  North America and Europe ANSWERS FOR 25th May 2020 TEST YOUR KNOWLEDGE (TYK) 1 B 2 A 3 D Must Read About Centre’s Kashmir Policy: The Hindu About free speech: The Hindu About UP government’s Migrant Commission: The Indian Express

Daily Prelims CA Quiz

UPSC Quiz - 2020 : IASbaba's Daily Current Affairs Quiz [Day 2]

To Know More about the Initiative -> 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. 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 Static Quiz

UPSC Static Quiz - 2020 : IASbaba's Daily Static Quiz - POLITY [Day 2]

To Know More about the Initiative -> Click Here DAILY STATIC QUIZ will cover all the topics of Static/Core subjects – Polity, History, Geography, Economics, Environment and Science and technology. After completing the 5 questions, click on 'View Questions' to check your score, time taken and solutions. Important Note Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)  To take the Test - Click Here

TLP Mains 2020

IASbaba's TLP 2020: UPSC Mains Answer Writing (General Studies) - High Ordered Thinking (HOT) Questions [Day 2]

To Know More about the Initiative -> Click Here Hello Friends, Welcome to IASbaba's TLP 2020, UPSC Mains Answer Writing (General Studies) - High Ordered Thinking (HOT) Questions [Day 2]. Questions are Current Affairs focused touching upon the 4 GS Papers (GS1, GS2, GS3, GS4). HOT Questions are designed to probe your analytical faculties. Note: Click on Each Question (Link), it will open in a new tab and then Answer respective questions! 1. India’s labour laws have been the most politically stubborn areas to reform, standing in the way of China-style industrial acceleration. Comment. 2. The toxic gas leak in Visakhapatnam that killed 11 people and made hundreds ill shows lessons haven’t been learned from the 1984 Bhopal tragedy. In this light, suggest a blueprint for preventing such disasters in the future. 3. What do you understand by ‘cultural diplomacy’? What dividends can India reap through sound cultural diplomacy? Examine.   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 :)  

IASbaba's Courses

FAQ’s: IASbaba’s Integrated Learning Program (ILP) BASIC / PLUS / CONNECT+ 2021 ONLINE and AIPTS 2021 Programme

Dear Students, Firstly, Thank You for such an awesome response to our recently launched Courses/Programs. We have been getting a lot of calls and mails on ILP, AIPTS and TLP Programs. To clear all your doubts at one place, we have created this elaborative list of FAQ's on ILP and AIPTS Courses. Kindly read with patience. This will clear most of your doubts. Also FAQ's on TLP and a comparison chart will be published shortly. You can take an informed decision by choosing the respective course according to your needs. READ THE FULL DETAILS OF ILP BASIC/PLUS/CONNECT 2020 READ THE FULL DETAILS OF AIPTS & AIPTS+   Frequently Asked Questions (FAQ’s) IASbaba’s ILP BASIC/PLUS/CONNECT+ 2021 ONLINE Programme   When will ILP 2021 Start? ILP 2021 will start on 1st July 2020. ILP program in Hindi (हिंदी) will start on 16th July 2020. Will ILP 2021 Programme be available in Hindi (हिंदी)? Yes, the entire ILP Programme – ILP Basic, ILP+, ILP Connect+ will be available in Hindi. ILP in HINDI (हिंदी) -> CLICK HERE FOR ANY DOUBTS/QUERIES in HINDI- CONTACT: 9911778098 Is ILP Prelims or Mains Focused? ILP will cover BOTH your Prelims and Mains Preparation. Will the Programme cover all the 3 Stages of Exam (Prelims, Mains, Inteview)? Yes. The Detailed Study Plan given now, will cover till Prelims. Prelims and Mains will be covered in an integrated approach in the 1st Phase. In Phase 2, i.e, Post UPSC Prelims 2021 Exam, according to the date of Mains Exam another Study Plan will be published on the ILP Portal (website) which would be Mains Exclusive. And post Mains Results, you will be guided and mentored through the Interview phase along with Mock Interviews. How is the Daily Study Plan designed/Importance of Study Plan? The Detailed Study Plan covers your entire syllabus of Prelims and Mains Preparation. even micro topics under the mains syllabus get covered. To Download the Detailed Schedule/Course Plan -> CLICK HERE Is the Programme designed for Working Professionals? Yes. The Study plan is designed such that, if a working professional can spare atleast 3-4 hours per day excluding the time spent for covering current affairs during work time in the weekdays and 8-10 hours on the weekends you can cover the syllabus on time. Also if you join ILP Connect the Mentors will guide you through on your plan and strategy regularly. What is Super 300? Super 300 is a kind of Scholarship Test. Based on the performance in the Test, FREE UPGRADATION will happen to ILP Connect+ for the TOP 300 Students. An OBJECTIVE TEST will be conducted on 20th June, 2020. Test will consists of 50 MCQ’s: 30 MCQ’s from Current Affairs and 20 MCQ’s from CSAT Syllabus (Aptitude and Logical Reasoning) How to Register for SUPER 300? When is the last date to register for SUPER 300? The last date to register for SUPER 300 is 19th June. To Register for Super 300 and take the Test, you must have enrolled either for ILP BASIC or ILP PLUS by 19th June 2020. TO REGISTER FOR ‘SUPER 300’ -> CLICK HERE Can I join ILP Connect+ without taking Super 300 Test? Yes, But the Seats are limited for ILP Connect+. The intake for ILP Connect+ will be 800 students only. 500 students will be considered on first come First-come-First Serve basis & remaining from SUPER 300. How will I get to know if there are any seats remaining for ILP CONNECT PLUS? As soon as the seats gets filled we will revoke the admission link. How many Prelims tests does ILP 2021 contain? A total of 62 Tests are provided. 52 Tests will be covering the entire General Studies and 10 Tests covering CSAT. How many Attempts can I take in each Prelims Test? You can take a maximum of 3 Attempts of each Prelims Test. Will there be Detailed Assessment and Ranking for Prelims Test? Detailed Assessment of your performance will be based on two tools for analyzing your performance in each test. Time-Analytics’ and Subject-wise Analytics’. This will help you gauge your efficiency per question (assist you in time-management) and to introspect your strength and weaknesses in a particular subject. All INDIA RANKING will be given for every test. How many Mains Tests are in ILP? How many questions will be given in each Mains Test? MAINS TESTS & SYNOPSIS– TOTAL = 50 TESTS 30 Micro MAINS TESTS & SYNOPSIS (Before Prelims) 20 FULL MOCK MAINS TESTS & SYNOPSIS (Post Prelims) The micro test will consist of 10 questions in each Test in the 1st Phase (Before Prelims). Later, post prelims, the 20 Mocks will be of full length (20 questions). Is there any facility that I could get my Mains answers evaluated in ILP Programme? Yes, due to many requests we have decided to include this feature. ILP portal will have a special feature this time, wherein you can submit your ILP Mains Test Papers for evaluation by paying an additional amount on per Test basis. Are the tests flexible? The tests are flexible. Once we upload a test you can give it any time based on your convenience. Prelims Tests can be accesses till UPSC Prelims 2021 whereas Mains tests can be accessible till UPSC Mains 2021. Will ILP cover Optionals? No. Only GS Papers and Essay will be covered under ILP Programme. How to prepare for Optional along with ILP 2021? In the daily model schedule we have mentioned how to squeeze in mains preparation. Mains static GS portion and optional can be done on alternate days in the same time slot. We have made an ideal timetable for three-time slots. If one can put more effort, one more slot can be created for optionals. Will the Value Added Notes (VAN) cover both Prelims and Mains? Yes. Our VAN is one of the most comprehensive documents which covers each and every topic of UPSC syllabus (Both Prelims and Mains) Will the Study materials (VAN’s) be sent to my address? No, all the material provided will be in the form of soft copy. You can download and study the same. Will I be able to Download or print Babapedia? Babapedia will be in Read Only format. It cannot be downloaded or printed. Should I make own notes from Babapedia? Yes, we recommend you to make your own notes which will not only help in easy revision but will also help in longer retention and sharpens your answer writing skill. Till when Prelimspedia and Mainspedia will be updated? Prelimspedia will be updated till 20 days before UPSC CSE Prelims 2021.Mainspedia will be updated till 20 days before UPSC CSE Mains 2021. Are all the materials and tests available in Hindi Medium? Is the translation done by experts? Yes, all the materials and tests (VAN, Babapedia, Prelims and Mains tests) are available in Hindi. The translation is done by the experts who have taken their UPSC CSE in Hindi Medium and have attended minimum 2-3 interviews. How will a mentor help me in this program? A mentor will help you to motivate as well as address your queries. The mentor will hand hold you in every aspect of your preparation related to this program. Please note that, topic-specific queries will not be entertained. For test specific doubts a separate portal is made available and abhivyakti wherein it acts as a social media of ILP. You can post such queries there. If I join ILP program with Hindi Medium, will my mentor communicate with me in Hindi? Yes, the mentors will communicate in Hindi for the Hindi medium students. How can I contact my Mentor? How frequently can I talk to my mentor? Can I speak to my mentor only over a phone call? You can talk to your mentor over a video call. There will be 20 Students who can connect at a time to your respective mentors. This will also act as a Buddy-System’, a small peer group to help and motivate each other for mutual learning. You can connect with your mentors 3 times a month. Basically 10 days once, so that you can get feedback on your performance in the Test and also on what should be your approach in the future. Even after that, you want to talk to your mentors you can talk to them over phone as per the time scheduled by your mentor. But it is advised to be in touch with your mentors over the video call, according to our experience which is more beneficial. What is the Importance of Mind Maps? How frequently will it be posted? Mind map helps you to visualize an image rather than the paragraphs. This way you will recall it much easier in the exam. It is crisp, so more information can be squeezed in a small space. You wouldn’t require bulky notes before the exam to revise. We keep posting them according to the Schedule. (Wherever the particular topic in the syllabus necessitates a mind map) and these Mind-maps will be available only in English. Will I be getting Essay Guidance if I join ILP 2021? Guidelines will be provided to you on how to write an essay, and then mock essays will be given for practice. UPSC asks for two types of topics – a static/ factual topic and a philosophical topic. Approach for both is different and will be provided to you as part of the Program. What is Abhivyakti? Each year we have a vibrant and engaging ILP community. Abhivyakti gives the ILP members a platform to get their doubts/queries addressed by IASbaba and peers and also initiate discussions/debates on important issues. What is Buddy System? Students having similar Optional-subjects, College or background can form groups and have discussions (peer-learning)! This will not only help you in forming a good peer-group/study-circle but also in motivating each other to achieve your goals. This is a boon! Especially for students who are studying at home, working professionals who are away from the UPSC-preparation hubs’ so that you can keep in touch with your friends, stay motivated, be informed and accountable at the same time. Will the videos provided in ILP+ and ILP Connect+ be live or recorded? The videos will be recorded. A user can watch it as many times he/she wishes. The test discussion videos will be generally provided within 2 days of completion of the test. ILP 2021 is for freshers or veterans? Should I join ILP or TLP? One can make best use of ILP, if he/she wants to cover the whole syllabus along with timely Prelims and Mains Tests. ILP will provide a yearlong schedule that will keep the preparation on track. So, both freshers and veterans can join this program. However, If you have finished thorough reading of the entire syllabus at least once or twice and only need guidance mainly for the Mains answer writing, and you can take care of Prelims through test series. Then we have an Integrated (Prelims & Mains) Test Series Based Mentorship Program TLP CONNECT or you can join Only Mains Mentorship Program TLP+. If I have joined ILP should I join AIPTS? ILP enrolled students need not join AIPTS. All the tests of AIPTS will be provided to the ILP registered students. What is the Fees for ILP Basic, ILP Plus, ILP Connect+ ? ILP Basic: Price- Rs.12,000 + 18 % (GST) = Rs.14,160/- ILP+ : Price- Rs.15,000 + 18 % (GST) = Rs.17,760/- ILP Connect+ : Price- Rs.20,000 + 18 % (GST) = Rs.23,600/- NOTE: Based on requests of many of our students, Discount will be provided to Old Subscribers (ILP/TLP/AIPTS/PEP (In PEP, only for those students who had enrolled for complete program can avail the discount). A one month window will be given, from 1st June – 30th June 2020. You can avail the discount then. Details will be published on 1st June. Kindly note, after 30th June 2020 the discount facility will be made inactive.      36. Where can I make the payment? Separate Payment links have been created for all the programs (ILP Basic, ILP+, ILP Connect+. Different Payment links for Hindi and English to make it easier to choose the medium and program of your choice. Please check the below post- ILP Basic, ILP+, ILP Connect+  -> CLICK HERE   37. From when can I access the ILP Platform? Once the payment is done- You will receive a Receipt/Mail with Login Details. Do not worry it may take 2-3 hours time since it is automated. You can always mail for any technical issue on given email ID (below) You will be able to login to your ILP account ONLY when the platform is activated. The platform will be activated one week before the start of the Program. The Program will start on 1st July, 2020.    38. Is there any Deadline to Join the ILP/AIPTS Programme? You can join the ILP 2021 or AIPTS 2021 anytime. There is NO DEADLINE! But we would advice you to join the program before it starts so that you can streamline and discipline your preparation. Please Note: ILP Basic, Plus, Connect+ Programs are available ONLINE ONLY FAQ'S All India Prelims Test Series (AIPTS)  When will the All India Prelims Test Series (AIPTS) start? The first Test of AIPTS (both in English and Hindi (हिंदी)) will start from 10th July, 2020. How many Tests are there in All India Prelims Test Series (AIPTS)? 62 Tests in Total. 52 General Studies Tests - 34 Tests (100 Mcqs) and 18 Current Affairs Tests (50 Mcq’s every 15 days). 10 CSAT Full length Tests To Download the Detailed Schedule of AIPTS -> CLICK HERE Will ILP 2021 Programme be available in Hindi (हिंदी)? Yes. FOR ANY DOUBTS/QUERIES in HINDI- CONTACT: 9911778098 Is AIPTS available both offline and online? Yes. But offline depends on the lockdown situation. Given the present conditions you can take the programme ONLINE and when conditions are back to normal you can change to OFFLINE Mode. Will all the tests be discussed in AIPTS+ ? Yes. Will the test discussion happen in Hindi (हिंदी)? Yes. What is the Fess for AIPTS, AIPTS+ (Offline and Online) ? AIPTS: Price- Rs.5,999 + 18 % (GST) = Rs.7,080/- AIPTS+ :Price- Rs.7,999 + 18 % (GST) = Rs.9,440/- Are the Prelims Tests flexible? Yes. Where can I make the payment? Separate Payment links have been created for both AIPTS and AIPTS+. Different Payment links for Hindi and English to make it easier to choose the medium and program of your choice. Please check the below post- AIPTS, AIPTS+  -> CLICK HERE If I still have Doubts/Queries with regard to ILP or AIPTS, where or whom to contact? You can reach us on Email id: ilp@iasbaba.com Mobile No: 9035077800/9986193413 (Please call between 10 am – 6 pm ONLY) 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: IASBABA, 5B, Pusa Road, Karol Bagh, New Delhi – 110005. Landmark: Just 50m from Karol Bagh Metro Station, GATE No. 8 (Next to Croma Store)   All the Best IASbaba Team

TLP Mains 2020

SYNOPSIS [Day 1]: IASbaba's TLP 2020-UPSC Mains Answer Writing (General Studies) - High Ordered Thinking (HOT) Questions 

SYNOPSIS [Day 1]: TLP 2020- UPSC Mains Answer Writing (General Studies)  Q 1.Why is the rural sector critical to the economy? Do you agree with the assertion that the rural sector can be the engine of economic recovery post COVID-19? Substantiate your views. Demand of the question: It expects students to write about the criticality of rural sector to the economy and write arguments about rural sector as engine of economic recovery post COVID-19 with examples and appropriate data.  Introduction: India is predominantly a rural country. As per the 2011 Census, 68.8 per cent of country’s population and 72.4 per cent of workforce resided in rural areas. Rural economy constitutes 46 per cent of national income. Despite the rise of urbanization more than half of India’s population is projected to be rural by 2050. Thus growth and development of rural economy and population is a key to overall growth and inclusive development of the country in post COVID-19 India. Body: Criticality of the rural sector in the economy: As per NITI Aayog report, more than half of Indian industrial production comes from the rural areas. Rural construction also accounts for nearly half of the total building activity in the country. The value of rural services is about a quarter of the total services output.  Agriculture has accounted for less than half of total rural output since the turn of the century. On the other hand, National Sample Survey Office (NSSO) data shows that more than one-fifth of rural households with self-employment in agriculture have income less than the poverty line. Agriculture labour productivity in terms of gross value added (GVA) in India is less than a third of that in China and 1% of that in the US.  Rural sector is net importer vis-e-vis urban areas which indicate outward flow of money.  Rural sector as engine of economic recovery: If there is no universal access to a Covid-19 vaccine for another 18-24 months, then businesses in safer sectors and locations are likely to do well, here rural sector might act as net gainer.  In rural India, where it is naturally easier to have physical distancing and outdoor work. This may shift the focus from urban markets to rural markets, for both demand and production. Surplus labour: Livestock, fisheries, dairy, vegetables, fruit and food processing are more labour-intensive and high value-yielding. After many decades of neglect in research and development, lack of market access, on-off policies for exports, and market distortions, the present adversity may be a timely opportunity for this sector. Self reliant rural sector: Local production of items of local requirement, the local weavers, artisans and craftsmen may establish micro enterprises and form local community marketing cooperatives.   There may be community campaigns for buying local products, as far as possible, replacing some of the items coming from urban industrial sectors. Infrastructure investment: Local initiative for building community infrastructure, like water harvesting, canal irrigation network, huts for community market centers etc. may generate employment opportunities.  Employment opportunity: Community level planning and implementation of 100-days work programmes under MNREGA may be emphasized with assured timely disbursement of cash, and issuing of new job cards to those who are not yet included. However, rural employment has shrunk after 2005 while the urban areas have not been able to absorb the millions who are leaving the farm. Rural India is incapable of absorbing the estimated 23 million interstate and intrastate migrant labours who might return home from urban areas due to the COVID-19 lockdown. It would need support of a suitable policy framework and reforms in pricing policy, tax, market access, credit and rural infrastructure, like warehouses and cold storage. The next two years or so of how we learn to live with corona virus can redesign the economy towards safer and more sustainable production and consumption, with agriculture and the rural economy as its strength, rather than its weakness. Conclusion: In this economic pandemic, the lifeline of Indian economy lies in the transformation of the rural sector into a matrix of local economies, striking a balance between their diversified local production for local needs and surplus trading. Q 2. How far do you support the decision of the Government to cap air fares? What impact will it have on the airlines? Critically examine. Demand of the question: It expects students to write about the rationality behind the decision of government along with the implications of decision on the airlines with critical analysis.  Introduction: Domestic flights in India will have a cap on fares with both an upper and lower limit for three months when flights resume on 25th may. While the upper price limit is aimed at preventing any sharp rise in fares due to pent-up demand, the lower limit will help ensure that financial viability of airlines does not suffer amid high costs. Body: Domestic flights will connect all cities, though airlines will be allowed to use only one-third of the capacity approved for this year’s summer schedule. The government has created seven major fare sections/zones, based on the distance and time taken to cover the distance. Airlines have to make available 40% of total seats in an aircraft at less than the mid-point price between the highest and lowest fares. Rationality of decision to cap airfare:  Caps on airfares were generally restricted to about a few days during calamities like floods even earlier.  Measure is temporary: As market based pricing system like pre-covid times can resume after 24th august as per government briefing. To provide affordable travel: Rates could have skyrocketed as lockdown affected business of airlines badly.  The weakest or least attractive player may suffer the most as they cannot use pricing as a tool to steal market share in the absence of cap on minimum fare. The fixed price excludes PSF (Passenger services fee), UDF (User development fee) and GST. The decision not to leave the middle seat vacant or zero social distancing on board would allow airlines to fly in an economic manner. Impact on Airlines: The government putting a cap on lower fare would reduce sale of future tickets among customers compared to pre-COVID-19 time. Airlines operate on thin margins as their business models are based on high operating costs. Such decisions can threaten their financial viability. Pricing is most strategic to airlines and airlines should have freedom to make their commercial decisions.  First time a network-wide fare capping has been introduced, fare regulation was limited to affected areas of natural calamity.  India's Air Corporation Act was repealed in 1994, so the announcement to regulate airfares more than 2 decades later comes across as certainly a step back. The decision of government has been viewed as interference of government in market based system and termed as regressive regulation by certain sections. Conclusion: Though, extraordinary times require extraordinary measures, even market based pricing could have achieved the same desired results of affordability for passengers and financial viability for carriers. Airlines can expect the fare capping won’t continue beyond 3 month stipulated time.   Q 3. The announcement of the revival package for kick-starting the economy is fiscally prudent. Elucidate. Demand of the question: It expect student to write about the fiscal prudent nature of revival package of Indian economy with enabling provisions to that effect.  Introduction: Prime Minister announced Atmanirbhar Bharat package amounting to almost 10% of GDP. The five pillars that form the core of the strategy include ‘Economy, Infrastructure, System, Vibrant Demography and Demand’. Body: The Rs. 20 trillion stimulus package is the total sum of both fiscal and monetary steps. Economic package had five tranches on five successive days.  The first focused on small and medium enterprises, non-bank financial institutions, real estate and liquidity.  The second on migrants, affordable housing, street vendors, and micro credit.  The third on agriculture, animal husbandry and fisheries.  The fourth on private-sector entry, the opening up of India’s coal sector, and the privatization of power distribution, airports and Union public sector enterprises (PSEs), as well as on raising foreign direct investment (FDI) limits.  The fifth focused on the rural employment guarantee, postponement of insolvency and other compliances, and incentivizing reforms in states by making their enhanced borrowings contingent on these. Fiscally prudent: Most of the package is essentially liquidity support with loan guarantees in some cases, where the fiscal payouts may happen only in future years, and that too to the extent some borrowers go bust or are unable to repay. The main elements of the package are Rs. 3 lakh crore guaranteed loan package to benefit 45 lakh micro, small and medium enterprises (MSMEs); Rs 20,000 crore as subordinated debt to help support stressed MSMEs which will benefit another 2 lakh firms; Rs. 50,000 crore corpus for an MSME-oriented fund of funds. 3 lakh crore loan package will remain as back up only when bank loans go bad, or some MSMEs which benefited from the Rs 3 lakh crore guaranteed loan package are unable to repay. In the Rs 50,000 crore fund of funds for MSMEs, the Centre’s contribution initially will be Rs 10,000 crore. In the Rs 20,000 crore subordinated debt plan to fund stressed micro and small enterprises, the Centre will pay Rs 4,000 crore initially. Rs. 30,000 crore of liquidity for non-bank finance companies (NBFCs), housing finance companies, and micro-financial institutions; a Rs 45,000 crore partial credit guarantee scheme for NBFCs;  Rs 90,000 crore of liquidity for stressed power distribution companies (DISCOMs), but it is not a freebie either; states will have to guarantee the repayments. Additionally, the Centre will pay for another three months (June-August) the Employees Provident Fund Organisation (EPFO) amounts usually paid by employers and employees who earn upto Rs 15,000 monthly. It will cost the exchequer Rs. 2,500 crore only. Temporary liquidity: The statutory contributions for Provident Fund will be cut from 12 per cent to 10 per cent for both employees and employers for three months, which will benefit 4.3 crore formal sector employees. The reduction in the PF contributions of employees will not cost the Centre anything; the cash flow relief to employees and employers for three months will end up reducing the overall accumulations in the employees’ EPFO corpus. Rs 50,000 crore of tax deduction at source (or tax collection at source) relief through a 25 per cent reduction in the TDS/TCS rates. The reductions in TDS/TCS payments will improve cash flows for both individuals and firms who receive such payments, but it does not cut the final amount of taxes payable. Considering the details of revival package, actual fiscal hit in the near term is well within the fiscal space of government. Covid-19 has reduced growth prospects of Indian economy to below 1% already with reduced tax collections; government had no other option but to become loan guarantor.   Conclusion: Revival Package has distributed fiscal cost of revival to next few years which is wise decision from the aspects of fiscal consolidation commitments of governments. If implemented well, can transform the face of India.  TLP HOT Synopsis Day-1 PDF