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Creative Guidance – Difference between knowledge and information – Inspirational Educative Articles

Difference between knowledge and information: Your knowledge is never a burden. It is your ignorance that is a burden. Any time you feel that your knowledge is becoming a burden, know that this burden is not the result of your knowledge, but because your ignorance has disguised itself as knowledge. True knowledge never becomes a burden; it never pulls you down. It always keeps you light and ensures that you’re enjoying the process of life. So, what is this true knowledge? Since we’ve been using the word “knowledge” loosely throughout human history, the word has become so common we have forgotten its true meaning. As the word itself suggests, knowledge comes from knowing which comes from the Greek root word gnosis which comes from the Sanskrit root word jnana. Jnana means pure awareness. This pure awareness, this ability to perceive things just as they are, is true knowledge. We need to understand the difference in knowledge and information. Your burden arises because now, instead of seeking knowledge, you are seeking information. In today’s language, when we are referring to knowledge, we are talking about information. You are thinking, “How much knowledge should I gain? How cautiously should I approach this? Will too much knowledge stop me from experiencing life in its purity?” You have substituted the word knowledge with information, and information is something that you should never gather; it should never become a part of you. Information should be used only when the situation requires it, so you shouldn’t be attached to that information. If you hold on to the idea that you need to acquire more information, you will become more isolated from life. Right from your childhood, you have been gaining knowledge and information. So, let’s better understand the difference between these two. If I were to ask you about the details of your life— “Where were you born? Who are your parents? What are your friends’ names? What did you learn in your science class?”—You would answer with information. You would tell me names, places, and dates. Much of this information remains as a memory. Knowledge is a consolidation of your entire life experience. Whether you can recollect it is not important. Since your knowledge blends into you, you can react appropriately to different situations. You cannot go back to how you were when you were five years old and respond to life in that way. Through growing up, your knowledge has become a part of you. This knowledge, however, can never block you from experiencing life in its purity. “This article is a part of the creative endeavor of Meditation Farm and IASBABA.”

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 19th October 2019

IAS UPSC Prelims and Mains Exam – 19th October 2019 Archives (PRELIMS + MAINS FOCUS) NATIONAL MILK SAMPLE SAFETY QUALITY SURVEY Part of: GS Prelims and GS Mains II - Health In News The Food Safety and Standard Authority of India (FSSAI) released the National Milk Sample Safety Quality Survey. Milk samples from Telangana, followed by Madhya Pradesh and Kerala, showed the highest number of cases of adulteration.  In terms of safety parameters, 10.4% of the total processed milk samples (nearly 2,600) failed to comply with the FSSAI norm as contaminants like aflatoxin-M1 were found.In case of raw milk, non-compliance was at an even higher rate of 47% of the total samples of 3,825.  In terms of quality, 7% of the total sample of processed milk did not comply with quality parameters because the presence of contaminants such as fats, Maltodextrin and sugar were above permissible limits.  Problem of Aflatoxin-M1 is more dominant in processed milk than raw milk.  Aflatoxin M1 is a chemical compound which contaminate plant and plant products. IT comes in the milk through feed and fodder that are currently not regulated in the country.  In large doses, aflatoxins can be life threatening, usually through damage to liver. Do You Know? India is the world’s largest producer of milk.  The total estimated milk production in the country was 176.35 million tonnes during 2017-18. Venezuela wins seat on UN Rights Council Part of: GS Prelims and GS Mains II–International Affairs In News Venezuela won a contested election for a seat on the UN Human Rights Council despite a campaign by over 50 organisations and many countries opposed to Nicolas Maduro’s government and its rights record. For the two Latin American seats - Brazil topped the ballot with 153 votes, followed by Venezuela with 105 votes About UNHRC It was founded in 2006. It replaced the former United Nations Commission on Human Rights (UNCHR) that had been strongly criticised for allowing countries with poor human rights records to be members. The Council is made of 47 Member States, which are elected by the UN General Assembly. The Council's Membership is based on equitable geographical distribution. Members of the Council serve for a period of three years and are not eligible for immediate re-election after serving two consecutive terms. In June 2018, the United States announced its withdrawal from the United Nations Human Rights Council (UNHRC) terming it “hypocritical and self-serving.” India had previously been elected to the UNHRC for the 2011-2014 and 2014-2017 terms. Vehicle registrations fell 12.9% in September Part of: GS Prelims and Mains GS-III - Economy In News Reflecting continued weakness in consumer sentiment, overall vehicle registrations in September 2019 fell 12.9% compared to the same period last year This is as per data obtained from the Federation of Automobile Dealers Associations of India (FADA) with the help ofVahan About VAHAN It is a digital national vehicle registry portal  Vahan intends to collate all the information available with road transport authorities for easy access by both citizens and regulators. Vahan allows access to all details related to vehicles such as registration number, chassis/engine number, body/fuel type, colour, manufacturer and model and provides various online services to citizens. Driving Licence and related data are automated through a separate application called ‘Sarathi’. Significance of VAHAN Vahan has been designed to capture all the information mandated by the Central Motor Vehicle Act 1988 as well as State Motor Vehicle Rules. Banks, which may have given out loans for vehicle purchases, will also have access to the National/State Registry to track the status of vehicles under lien. Merchant discount rate (MDR) Part of: GS Prelims and GS Mains III - Economy In News The Union government said banks or system providers will not impose charges or merchant discount rate (MDR) on customers as well as merchants on digital payments made to establishments having turnover in excess of ₹50 crore from November 1. MDR is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments Amendments to this effect have been made in the Income Tax Act as well as in the Payment and Settlement Systems Act 2007. Waste to Wealth: Cooking oil-to-biodiesel Part of: GS Prelims and GS Mains III –Environment Conservation In News Zomato and biodiesel manufacturer BioD Energy have inked a partnership to collect used cooking oil from restaurants around the country so that it could be converted into biodiesel, which would then be sold to oil marketing companies to be blended with regular diesel According to FSSAI regulations, the maximum permissible limits for Total Polar Compounds (TPC) have been set at 25%, beyond which the cooking oil is unsafe for consumption. Reducing the re-use of cooking oil in the food industry will have positive public health outcomes and also reduces import demand of crude oil  The deal assumes significance in the light of government’s Repurpose Cooking Oil (RUCO) initiative About RUCO It was launched by The Food Safety and Standards Authority of India (FSSAI) in Feb 2019 to collect and convert used cooking oil into bio-fuel. As many as 64 companies in 101 locations across the country have been identified for the purpose by FSSAI. By 2020, it should be possible to recover about 220 crore litres of used cooking oil for conversion into bio-fuel.   (MAINS FOCUS) FOREIGN POLICY TOPIC: General Studies 2: India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests Effect of policies and politics of developed and developing countries on India’s interests, Indian Diaspora. Pakistan continues to be on the Grey List of FATF Context: Pakistan continues to be on the Grey List of the international terror financing watchdog Financial Action Task Force. The decision of FATF was taken after the completion of its five-day plenary session in Paris.  Pakistan has been warned of action for its failure to combat money laundering and terror financing. If Pakistan continues with the 'Grey List' or is put in the 'Dark Grey' list, it would be very difficult for the country to get financial aid from the IMF, the World Bank and the European Union This will benefit India in many ways, such as: Pakistan will be put under closer scrutiny immediately to curb terror financing.  Reduced Pakistan funded terrorist attacks and infiltrations such as Pulwama and Mumbai attacks. Economic benefits to India as FATF has increased the cost of doing business with Pakistan which will attract less FDI now. Enhanced image of India in international forums as Pakistan will face an international boycott. Pakistan’s already fragile economy will have a powerful blow which will be in India’s favour in international trade. What next? In an assessment Pakistan has failed to meet 22 of the 27 targets set by it.  If it does not comply with the FATF’s demands fully by February 2020, however, it risks ending up in the company of Iran and North Korea on its black list, which could result in its financial isolation. The Financial Action Task Force : FATF stands for The Financial Action Task Force. It was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering.  The FATF Secretariat is housed at the OECD headquarters in Paris. India and the Financial Action Task Force (FATF):  India became a member of the Financial Action Task Force (FATF) in 2010.  It will help India to build the capacity to fight terrorism and trace terrorist money and help to successfully investigate and prosecute money laundering and terrorist financing offences.  India will benefit from securing a more transparent and stable financial system by ensuring that financial institutions are not vulnerable to infiltration or abuse by organized crime groups. In recent past, Pakistan had asked for India’s removal from the group, citing bias and motivated action, but that demand was rejected.  China and other allies: It is no coincidence that Pakistan’s all-weather ally China is the current chair of the FATF. While support from Turkey and Malaysia helped block the move — the charter states that three votes are mandatory for a country to avoid being blacklisted— it was not enough to avoid a stern warning. Conclusion: There is greater awareness now of how Pakistan has diverted aid for the war on terror towards funding terror.  Pakistan must abandon terror as an instrument of State policy.  Connecting the dots: There is greater awareness now of how Pakistan has diverted aid for the war on terror towards funding terror. Analyse ECONOMY TOPIC:General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Non-Performing Asset Context: The financial stability report released by the Reserve Bank of India has warned that the gross non-performing assets (GNPAs) of scheduled commercial banks in the country could rise from 11.6% in March 2018 to 12.2% in March 2019, which would be the highest level of bad debt in almost two decades. What is NPA? NPA in terms of RBI regulations result out of non-payment of interest for a period of 90 days or non-payment of principle amount for 90 days or more. So beyond that point, it is called Non-Performing Asset.  The loan is taken by the company on its assets from the bank. When the asset is not performing because they become doubtful and NPAs from doubtful become bad loans. Background: The problem name NPA is not of recent origin. Few years back, India suffered from a huge infrastructure gap and the banking sector was encouraged to get themselves into a lending spree for companies willing to undertake various projects.  Public Sector Banks were actually pushed to provide loans for projects that were floated largely by the private sector. The following have caused distress in the banks’ assets and have played part in the mounting NPAs – Prolonged downturn in the world economy, Falling commodity prices, Lack of due diligence and adherence to rules  Complex workings of the bureaucracy, Typical bureaucratic red tape, Long delays and gestation periods of several infrastructure projects, Delays in land acquisition and Politically inspired agitations Can’t collateral be used to write off loans? When the banks give loans, they take something from the entity taking it as collateral for that loan. Lot of people give collaterals but in case of large projects, it is not possible to give collaterals. In such cases, the land purchase, the building purchase, the plant machines, the debtors and inventory are mortgaged to the bank. These assets are available but if they are able to produce enough to really repay to the bank remains doubtful. How NPAs arose? After 2008, there was international financial crisis. The prices have fallen significantly in the international market. In last two years the commodity market is very bad for example, the Sugar industry and steel industry. Power sector was not operating properly. Halfway through the plants being operational, the banks stopped giving them money due to policy paralysis. People had extended their business beyond their means and higher interest was creating more problems Had the financial planning and financial management not compromised while giving the loans, the issue wouldn’t have been this grave. In certain cases, the money has been diverted by entrepreneurs, they did not bring in promoters, did over invoicing of expenditure and took out money from that. So all kinds of speculations are there which led to increase in NPAs. Five-pronged plan of the Sunil Mehta-panel: Project Sashakt An independent asset management company (AMC) and alternative investment fund-led resolution approach to deal with NPA cases of more than Rs 500 crore An asset trading platform for both performing and non-performing assets A plan for also dealing with bad loans up to Rs 50 crore – for very small loans, banks will set up verticals and departments to deal specifically on a template basis like the deadlines, the timeframe for it to be resolved in 60 days, and the resolution will be carried out on a basis which will be defined. Banks will have to follow a predefined manner of putting forth resolution plans and work with people with specialisations to deal with it. For loans between rs 50 crore and rs 500 crore, the committee called for a bank-led resolution approach, with the resolution being achieved in 180 days. The resolution plan has to be approved by lenders holding at least 66 per cent of the debt For the resolution of SMEs, the committee suggested the setting up of a steering committee by banks for formulating and validating the schemes, with a provision for additional funds. Stating that the resolution should be complete within 90 days, the committee suggested that the resolution of these assets be under a single bank’s control, with the bank having the liberty to customise it. Criticisms of Project sashakth: Disfavours the idea of setting up a “bad bank” The resolution route is also applicable to larger assets already before the National Company Law Tribunal (NCLT) and any other asset whose resolution is still pending. Way forward: Government will have to do mix and match of various things. No single solution for all the problems. The solution has to be derived on case to case basis. The government is thinking of setting up committees for this purpose. There can be learned people appointed in each and every case who know their industry very well. Whether government should run the business is also a big issue. It makes sense for the government to convert part of the loan into equity and take majority ownership possible. The banks will be able to take over the management and revive the company. It is important to do the financial restructuring. There are many who get repeated in the defaulters list. So some long term solution is required. They can’t be allowed to benefit on their own fault. There should be certain benchmark on the performance. If they are not able to perform, then entire debt can be converted into equity or part of the debt can be waived and bring in other promoters. Connecting the dots: Serious corporate governance issues faced by public sector banks, which to a large extent also contributed to the lax lending practices that are at the core of the NPA crisis. Examine. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1)Consider the following statements about UN Human Rights Council (UNHRC) It was established in 2006 whose members are elected by the UN General Assembly for a three-year period United States of America withdrew its membership from the organisation in 2018 and Iceland was elected to replace the vacancy left by the United States  India is currently serving as the chair of the Council Which of the statement(s) given above is/are correct? 1 and 2 only 2 only 2 and 3 only 1,2 and 3 Q.2)Consider the following statements  NITI Aayog releases the National Milk Sample Safety Quality Survey. Milk samples from Telangana, followed by Madhya Pradesh and Kerala, showed the highest number of cases of adulteration.  Which of the statement(s) given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.3)Consider the following statements about VAHAN portal Vahan intends to collate all the information available with road transport authorities for easy access by both citizens and regulators. Banks, which may have given out loans for vehicle purchases, will also have access to the National/State Registry to track the status of vehicles under lien. Which of the statement(s) given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.4)Repurpose Cooking Oil (RUCO) initiativeis being implemented by which body /ministry? Ministry of Oil & Petroleum NITI Aayog Food Safety and Standards Authority of India None of the above Q.5) Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news? The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank. The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services. The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards. The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards. MUST READ Vital additions to empirical research The Hindu Unresolved questions in a sordid episode The Hindu In pursuit of complete dominance The Hindu Boris Johnson’s Brexit troubles are not over IE Afghanistan polls, held without a ceasefire, do not portend political stability IE

Motivational Articles

Creative Guidance: Book Review – The beginning and the end – Nicolas Berdyaev

The beginning and the end: Nicolas Berdyaev A life not based on philosophy is just a random set of activities with no deeper meaning and purpose. Philosophy lends meaning and purpose to life and more importantly it helps one to make sense of the complex nature of human life. Nicolas Berdyaev in this book explores some of the most important questions of life – the nature of reality, mind, thoughts, different schools of thought etc. This book is a fascinating and informative read to understand complex problems of life. The beginning and the end explores thoughts and ideas of various great philosophers. Nicholas uses his impeccable logical and reasoning skills to dissect different philosophical thoughts to reveal insights that are both practical and real. Although slightly circulative and a little difficult to read, the book for sure answers some important questions. His philosophical understanding is deep rooted in spirituality and the inner nature of man which makes it all the more practical and useful.

AIR

All India Radio (AIR) IAS UPSC - Launch of Innovative Learning Program DHRUV

Launch of Innovative Learning Program DHRUV ARCHIVES Search 10th October 2019 here http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues relating to development and management of Social Sector/Services relating to Education In News: Pradhan Mantri Innovative Learning Programme- 'DHRUV', a 14 day learning programme, has been launched from Indian Space Research Organisation (ISRO) Headquarters at Bengaluru. 60 students, 30 each from Science and Performing Arts discipline, have been selected for this ambitious programme in the first batch.  The students will be from class 9 to 12 coming from private and public schools The first batch of this innovative scheme will consist of students who are talented in areas from singing and dancing to mathematics and physics. The students are being selected on the bases of their performance in the National Talent Search Examinations, competitions etc and once these students are selected the ministry will conduct sessions to get these children mentored in their chosen fields. The programme begins with a tour at ISRO followed by a stay in Delhi, where the selected students will be mentored by renowned experts.  The programme will conclude on October 23. Philosophy: The programme is called DHRUV (after the Pole Star) and every student to be called 'DHRUV TARA'. The students will thus both shine through their achievements and light a path for others to follow. Objective: To identify and encourage talented children to enrich their skills and knowledge – In centres of excellence across the country, gifted children will be mentored and nurtured by renowned experts in different areas, so that they can reach their full potential. It is expected that many of the students selected will reach the highest levels in their chosen fields and bring laurels to their community, State and Nation. The scheme is set to be extended to other fields including creative writing as well. The scheme will help in sharpening the innovative imagination skills of the students along with their knowledge.  The scheme will help the students to contribute to bringing in solutions to the socio-economic, environmental and political issued currently faced by the country. The programme will discuss global community challenges such as agricultural problems, glacial meltdown and water conservation. After receiving the training these students will be capable to contribute and provide solutions to climate change.

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 18th October 2019

IAS UPSC Prelims and Mains Exam – 18th October 2019 Archives (PRELIMS + MAINS FOCUS) INDIA INNOVATION INDEX 2019 Part of: GS Prelims and GS Mains III - Economy In News NITI Aayog with Institute for Competitiveness as the knowledge partner released the India Innovation Index (III) 2019. The aim is to create a holistic tool which can be used by policymakers across the country to identify the challenges to be addressed and strengths to build on when designing the economic growth policies for their regions. The Index is calculated as the average of the scores of its two dimensions - Enablers and Performance. The Enablers are the factors that underpin innovative capacities, grouped in five pillars: (1) Human Capital, (2) Investment, (3) Knowledge Workers, (4) Business Environment, and (5) Safety and Legal Environment. The Performance dimension captures benefits that a nation derives from the inputs, divided in two pillars: (6) Knowledge Output and (7) Knowledge Diffusion. There seems to be a west-south and north-east divide across the country. The top ten major states are majorly concentrated in southern and western India. Karnataka is the most innovative major state in India. Karnataka’s number one position in the overall ranking is partly attributed to its top rank in the Performance dimension. Sikkim and Delhi take the top spots among the north- eastern & hill states, and union territories/city states/small states respectively. TB cases see decrease in India Part of: GS Prelims and GS Mains II - Health In News The tuberculosis incidence rate in India has decreased by almost 50,000 patients over the past one year, according to the WHO -2019 edition of the Global Tuberculosis (TB) report The report notes that in 2017, India had 27.4 lakh TB patients which came down to 26.9 lakh in 2018.  TB Incidence in India per 1,00,000 population has decreased from 204 in 2017 to 199 in 2018. The number of patients being tested for rifampicin resistance has increased from 32% in 2017 to 46% in 2018.  However, the treatment success rate has increased to 81% for new and relapse cases (drug sensitive) in 2017, which was 69% in 2016. Do you know? TB remains the top infectious killer in the world claiming over 4,000 lives a day Nikshay Aushadi Portal is a web-based application for the management of Anti-Tuberculosis (TB) Drugs and other commodities under Revised National Tuberculosis Control Program (RNTCP).It is implemented by Union Ministry of Health & Family welfare FATF may keep Pakistan on grey list Part of: GS Prelims and Mains GS-III - Economy In News Pakistan could escape being blacklisted by the Financial Action Task Force (FATF) but the country is likely to be issued strong warnings and put under pressure Blacklisting unlikely given support of China and Malaysia If not downgraded, Pakistan is expected to be kept under ‘significant and sustained’ pressure to deliver on the action plan by February 2020 Asia-Pacific group assigned a National risk rating of “medium” to the country on counter-terror financing and anti-money laundering The report by Asia-Pacific group says that Pakistan had taken positive actions against these organisations “but UNSCR 1267 is not being fully implemented” The Grey listing means downgrading of the country by multilateral lenders like IMF, World Bank, ADB, EU and also a reduction in risk rating by Moody’s, S&P and Fitch.  About FATF It was established in 1989 to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF currently comprises 37-member jurisdictions and 2 regional organisations (the Gulf Cooperation Council or GCC, and the European Commission) TULAGI ISLAND Part of: GS Prelims and GS Mains I – Geography In News A Chinese company has signed an agreement to lease an entire island in the Solomon Islands. Tulagi, an island about two square kilometres with a population of 1,200, is the site of a former Japanese naval base and was the scene of fierce fighting in World War II. The island of Tulagi served as a South Pacific headquarters for Britain and then Japan. During Second World War, its natural deepwater harbour across from Guadalcanal was coveted by the military.  The agreement with state-owned China Sam Enterprise Group mentions developing special economic zone and a refinery on the island But the island’s port and its potential for dual use as a Chinese military base is certain to raise concerns with the United States and Australia. Recently, China and the Solomons officially established diplomatic relations after China persuaded the impoverished Pacific nation to sever ties with Taiwan and become its ally. (MAINS FOCUS) ECONOMY TOPIC: General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. Randomized controlled trial  Context: The 2019 Sveriges  Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded jointly to Abhijit Banerjee, Esther Duflo and Michael Kremer “for their experimental approach to alleviating global poverty”. The three adopted an evidence-based approach to apply theory to real-life situations using randomised trials and assessing the outcomes.  The effort was to understand the impact of interventions to achieve desirable outcomes. Randomized controlled trial A randomized controlled trial is a type of scientific (often medical) experiment that aims to reduce certain sources of bias when testing the effectiveness of new treatments;  This is accomplished by randomly allocating subjects to two or more groups, treating them differently, and then comparing them with respect to a measured response.  One group—the experimental group—has the intervention being assessed, while the other—usually called the control group—has an alternative condition, such as a placebo or no intervention.  The groups are followed under conditions of the trial design to see how effective the experimental intervention was. Treatment efficacy is assessed in comparison to the control. There may be more than one treatment group or more than one control group. Back in the late 1990s, this was not a well-known concept, let alone a widely practised research method. Moreover, research in economics was still largely theoretical although the shift in a more empirical direction had already started. [caption id="attachment_51469" align="aligncenter" width="602"] IAS UPSC Prelims and Mains Exam – 18th October 2019[/caption] RCTs use the following insight:  You select two groups that are similar and then randomly select one to receive the treatment (a drug, or a policy) being tested and then compare the outcome of this group (called the treatment group) with that of the other group (called the control group).  If the difference is statistically significant, then that is attributed to the treatment. Using this method in economics has altered our views about what policies work and what do not. Application: From testing drugs to placing government programmes as well as those carried out by NGOs on a randomised basis across villages, households, and organisations, takes quite a leap of imagination.  The reason it caught on in academic research in economics is because with greater computing power and large data-sets that were available, empirical work was in ascendance and yet, given the nature of data that is collected in usual surveys, it is hard to establish the effect of any programme on any outcome in a rigorous way. Applied to study problems at the micro-level where the implementation of an individual programme can be done in a randomised way that allows for a statistically satisfactory evaluation of the programme’s impact. Criticism: RCTs are not feasible, which is often the case with more large-scale macro-level questions, one has to rely on other, more roundabout methods to overcome the problem of causal inference. Broad macro-level issues or the more long-run aspects of development and institutional change, they are not feasible Contemporary  RCTs : A new generation of RCTs are going beyond programme evaluation and asking how individuals react to change in prices, contracts, and new information in the context of specific markets such as land or credit.  For example, a recent RCT offered different terms of sharecropping contracts in a randomised way to find out the effect of higher crop-shares on agricultural productivity in the context of tenancy. The evidence suggested significant productivity gains, confirming the importance of incentives. Case study: ‘Operation Barga’, the tenancy reform programme carried out in West Bengal by the Left Front government in the late 1970s and early 1980s, which shifted crop-share up. In that study, there was no way of fully controlling for all other factors that had changed contemporaneously, such as empowering panchayats.  This is an example of how RCTs can be potentially applied to a broader set of issues going beyond programme evaluation. Limitations: They can establish what works, but cannot say much about what could have worked better or whether it could work in a very different environment. Solution: see how they can be combined with theoretical models to simulate the effect of alternative policies or what could happen in a very different environment. Conclusion: This method now has become one of the main tools used in empirical work in development economics and in related fields. It has also led to a paradigm shift in development policy evaluation — the World Bank, and many governments and large NGOs now insist on randomised control methods wherever feasible. Connecting the dots: Despite limitations, the use of randomised control trials has led to a paradigm shift in development policy evaluation. Justify ECONOMY TOPIC: General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it. The economic slowdown in the country Data: Private consumption has contracted and is at an 18-quarter low of 3.1% Rural consumption is in a deep southward dive and is double the rate of the urban slowdown Credit off-take by micro and small industries remains stagnant;  Net exports have shown little or no growth;  GDP growth is at a six-year low with the first quarter of FY20 registering just 5%;  Unemployment is at a 45-year-high. The IMF expects global economic growth to be just 3% this year, the lowest since the 2008 global financial crisis Causes: The trigger was probably the trade slowdown. Recently, the WTO also indicated that world trade growth would be 1.2% , down from 3%. So, a very anaemic or even a flat growth rate in trade is pulling down the economy.   Because this is the age of global integration, all economies get affected.  The trigger also lies in the protectionist tendencies of world economies and the U.S.-China trade war.  India is also affected by this and other domestic issues. Emerging market economies started showing some weaknesses. Brazil and South Africa have already got into the recessionary stage.  China started slowing down although there are many who say it is deliberate to reduce the overheating the economy was facing. India’s case: India is that compared to 2008, we are not immune to global slowdown. In fact, in 2008 we were growing faster. That is the main worry for us. As the Indian economy has gradually opened up since 1991, the global economic situation has had spillovers in India.  Between 2003 and 2008, the Indian economy was averaging between 8% and 9% growth. After the collapse of Lehman Brothers, it came down to 6.2%, but we were very solid. Non-Banking Financial Companies [NBFC] crisis has affected the flow of credit to capital goods. The demand for capital goods is down, as is car sales. Real estate is in trouble. This has resulted in a spillover in the rest of the economy. There is a slump in demand.  Public investment is very critical.  Criticisms: India’s exports have not been able to keep pace with expectations, especially in labour-intensive sectors like textiles, where Vietnam and Bangladesh have surged ahead. Way forward: We have to worry about fiscal stimulus, not fiscal consolidation.  Then there should be some kind of social spending which affects people in need with a high propensity to consume.  Any cash reaching the poor will find its way into the market quickly. Address the inequalities in recent times. Indian industry has grown with the comfort of having a large domestic market.  We need to nudge industry to look at global and regional markets, especially for labour-intensive goods. We need to avoid the appreciation of the rupee if we are to strengthen the domestic manufacturing industry.  Any appreciation of the rupee facilitates more imports and less exports, adversely affecting domestic production. Eastern  trade: The dynamism in world trade is in the Eastern side. The Western markets are really flat. There is also a rise in protectionism.  In such a situation, we need to tap the Asian markets. In that context, RCEP [Regional Comprehensive Economic Partnership] is an important initiative.  It gives us a possibility to integrate the Indian economy and production with the value chains in east-Asian countries. Connecting the dots: What can India do to overcome the global slowdown? Examine. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1)Nikshay Aushadi Portal often seen in news is predominantly associated with which of the following area? Provision of cheap Generic drugs Revised National Tuberculosis Control Program Tracking of imports of Active Pharmaceutical ingredients None of the above Q.2)Consider the following statements about the Wold Health Organisation -2019 edition of the Global Tuberculosis (TB) report TB remains the top infectious killer in the world claiming over 4,000 lives a day TB Incidence in India per 1,00,000 population has decreased from 204 in 2017 to 199 in 2018. Which of the statement(s) given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.3)India Innovation Index is released by which ministry/body?  Niti Aayog Ministry of Commerce World Economic Forum None of the above Q.4)Tulagi islands often seen in news is located in which region? Mediterranean Sea Indian Ocean Pacific Ocean South China Sea  MUST READ Awaiting the verdict: On Ayodhya dispute The Hindu The secondary monsoon: On rainfall behaviour The Hindu The dominant caste dilemma The Hindu A law alone will not serve as a panacea against torture by police in India IE Why China’s growth has slowed to a record low? IE

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RSTV IAS UPSC – Income Tax - E Assessment

Income Tax - E Assessment Archives TOPIC General Studies 3 Economy In News: The government of India has over the last few years taken various steps to reduce human interface between the tax administration and the taxpayers and bring in consistency and transparency in various tax matters through use of Information Technology. Finance Minister Nirmala Sitharaman has inaugurated the Income Tax Department’s National E-assessment Centre (NeAC). The NeAC will be based in Delhi, and will look after the functioning of e-Assessment scheme. The body would be headed by principal chief commissioner of income tax. Regional e-assessment Centre (REC): Additionally, there would be eight Regional e-Assessment Centres (ReAC) in Delhi, Mumbai, Chennai, Kolkata Ahmedabad, Pune, Bengaluru and Hyderabad. Apart from assessment units, these centres would also be home to review, technical and verification units. Each ReAC will be headed by chief commissioner of income tax (CCIT). “Cases for the specified work shall be assigned by the NeAC to different units by way of automated allocation systems Assessment units (AU): AU will perform the function of scrutinising tax returns, analysing submissions made and evidence submitted by the assesse and make requests, if any verification or technical assistance is required. Verification units (VU): VU will perform the function of making enquiry, cross verification, examination of records or witnesses and recording statements, as may be required for verification. Technical units (TU): TU will give advice on legal, accounting, forensic, information technology, valuation, transfer pricing, data analytics, management or other technical matter required for conducting assessments. Review units (RU): RU will review draft assessment order (DAO) to check if all material evidence, relevant points of fact and law, relevant tax case laws have been included in the DAO. It will also ensure the arithmetical accuracy of modifications proposed and perform other functions as may be required for review. A paradigm shift in e-assessment Between 2016 and 2018, the Central Board of Direct Taxes (CBDT), which is the apex tax administrative body, progressively amended rules, notified various procedures and issued the required guidelines to increase the scope of e-proceedings. The CBDT also issued instructions that income-tax assessment proceedings to be framed in the year 2018-19 and 2019-20, shall be conducted through the e-proceeding facility. Exceptions were carved out for certain types of proceedings such as search and seizure cases, re-assessments, best judgement assessments, etc., where the assessment would be done through personal hearing process. CBDT also specified certain situations where taxpayer may be required to appear in person although the assessment is being carried out through e-proceedings. However, under this framework, the element of personal interaction with the tax department was always present as the entire tax assessment was carried out by the tax officer having jurisdiction over the taxpayer. The government’s objective was, therefore, to move from ‘e-proceedings’ towards an ‘e-assessment’ mechanism where the tax officer conducting the assessment would not be known to the taxpayer. Towards this objective, the Finance Act, 2018, amended the provisions of the Income-tax Act, 1961, (Act) to empower the government to notify a new tax assessment scheme, whereby the proceedings will be conducted entirely in an electronic mode. The finance minister while presenting the Union budget in July also stated that the new scheme would be launched in a phased manner in the current financial year, i.e., financial year 2019-20. The new scheme was slated to bring in a paradigm shift in the way tax assessments were carried out in India by eliminating person-to-person contact to the extent it is technologically feasible, providing a fair and transparent framework of assessments, ensuring the tax assessments were technically sound and that consistent tax positions were taken. E-Assessment Scheme, 2019 Centre Government had recently notified e-Assessment scheme to facilitate faceless assessment of income tax returns through completely electronic communication between tax officials and tax payers. The first few steps…: In the first phase, the income tax department has selected 58,322 cases for scrutiny, for which e-notices have been served before September 30, belonging to cases of Assessment Year 2018-19. The cases for scrutiny in first phase have been identified based on risk parameters and are computer generated. Why is it important? The new system optimises the utilisation of resources through economies of scale. It will reduce face-to-face interaction between taxpayers and tax officials. Will reduce taxpayer’s grievances in line with the Prime Minister’s vision of ‘Digital India’ and promotion of ease of doing business It introduces team-based assessment with dynamic jurisdiction which will ease of compliance for taxpayers.  It is also expected to bring transparency and efficiency, thus improves the quality of assessment and monitoring. The department claimed that it will dispose of the cases expeditiously. Under the new system, taxpayers will receive notices on their registered e-mails as well as on registered accounts on the official web portal. They will also receive real-time alerts by way of SMS on their registered mobile number, specifying the issues for which their cases have been selected for scrutiny. The reply to the notice can be prepared at ease by the taxpayer at own residence or office and can be sent by email to the National e-Assessment Centre by uploading the same on the designated web portal. In view of the dynamic and all India jurisdiction of all officers of NeAC and ReAC, this kind of connective and collaborative effort of officers is likely to lead to better quality of assessments.

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 17th October 2019

IAS UPSC Prelims and Mains Exam – 17th October 2019 Archives (PRELIMS + MAINS FOCUS) GLOBAL HUNGER INDEX Part of: GS Prelims and GS Mains II - Health In News The latest Global Hunger Index (GHI) has ranked India a lowly 102 among the 117 countries it has mapped The report, prepared jointly by Irish aid agency Concern Worldwide and German organisation Welt Hunger Hilfe. For each country in the list, the GHI looks at four indicators – Undernourishment (which reflects inadequate food availability); Child Wasting- share of children under the age of five who have low weight for their height - which reflects acute undernutrition; Child Stunting - that is children under the age of five who have low height for their age -which reflects chronic undernutrition; Child Mortality – mortality rate of children under 5 years (which reflects both inadequate nutrition and unhealthy environment). On the whole, the number of hungry people has risen from 785 million in 2015 to 822 million. Multiple countries have higher hunger levels now than in 2010. With an overall score of 30.3, India falls in the “serious” category. India has the highest percentage of children who suffer from acute undernutrition. On other parameters, where India has improved, the pace has been relatively slow Among the BRICS grouping, India is ranked the worst, with China at 25 and a score of just 6.5. Within South Asia, too, India is behind every other country. Sri Lanka, Nepal, Bangladesh and Pakistan (in that order) are all ahead of India. Indigenous breeds record marginal rise Part of: GS Prelims and GS Mains III - Economy In News According to 20th Livestock Census released there are 4.85 crore desi (native) milch cows in the country compared to 4.81 crore population in the last census in 2012, indicating less than 1% increase On the other hand, the milch population of exotic and crossbred cattle — including varieties such as Jersey or Holsteins which have much higher milk yields — saw a whopping growth of 32% over the last seven years, growing from 1.9 crore to 2.5 crore animals. The Rashtriya Gokul Mission, launched by the Bharatiya Janata Party-led (BJP) government in 2014, aimed to promote indigenous desi breeds.  However, the total population of such cattle (indigenous desi breeds) — male and female together, milk-producing or not — actually dropped 6% to 14.2 crore animals, while exotic and crossbred cattle saw an overall growth of almost 27% to 5 crore animals. https://d39gegkjaqduz9.cloudfront.net/TH/2019/10/17/CNI/Chennai/TH/5_07/9ddc121e_3264579_101_mr.jpg Army mulls over Joint Services Act Part of: GS Prelims and Mains GS-III - security In News In his Independence Day address, PM Modi announced the creation of the post of Chief of Defence Staff to provide “effective leadership at the top level” to the three wings of the armed forces, and to help improve coordination among them. CDS offers seamless tri-service views and single-point advice to the Executive on long-term defence planning and management, including manpower, equipment and strategy, and above all, “jointsmanship” in operations. Thus there is a need for creating arrangements and structures to synergise and which can pave way for effective integration Currently, each Service has an individual Act passed by Parliament. A Joint Services Act on approval by the government will facilitate faster integration. KHON RAMLILA Part of: GS Prelims and GS Mains I – Art & Culture In News The Culture Department of Uttar Pradesh government is going to organise the country’s first training and performance programme of world famous KHON Ramlila in collaboration with Thailand government. KHON Ramlila is a masked form of Ramlila art of Thailand. It is a form of masked dance depicting the scenes of Ramlila. It has no dialogues and background voices narrate the whole story of Ramayana. It is also famous for its beautiful attire and golden masks. It is included in the list of UNESCO’s Intangible cultural heritage.  The Ramakien (literally ‘Glory of Rama’) is Thailand's national epic, derived from the Hindu epic Ramayana. (MAINS FOCUS) TRADE TOPIC: General Studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests Effect of policies and politics of developed and developing countries on India’s interests, Indian Diaspora. RCEP and Data Context: Regional Comprehensive Economic Partnership trade negotiations, being held with Association of Southeast Asian Nations, China, South Korea, Japan, Australia and New Zealand, India may accept free data flow clauses with some public policy exceptions. It needs to be understood that suitable data controls and policies are not to be exceptions but the mainstream of a digital economy and society. Arguments: India will largely end up ceding most of its data policy space, and data sovereignty.  it will give up any chances for effectively using Indian data for India’s development, and for digital industrialisation to become a top digital power. It will effectively be laying the path for permanent digital dependency, with India’s data flowing freely to data intelligence centres in the U.S., and  China.  A  few global “intelligence corporations” will digitally, and intelligent-ally, control and run the entire world. About RCEP: Regional Comprehensive Cooperation agreement – is a proposed free trade agreement between 10 members of ASEAN and its five FTA partners (China, India, Australia, Japan, New Zealand) RCEP negotiation was formally launched in 2012, whose member states together account for 3.4 billion people and approximately 40% of world’s GDP. Img: http://www.businesskorea.co.kr/news/photo/201711/23601_19813_0.jpg Do you know? Members of Indian Industry are resisting RCEP due to following concerns  Flooding of the market with Chinese goods impacting domestic manufacturers Lack of access to Indian services in the RCEP countries (Services is India’s strong area and has huge potential to tap into RCEP market) Issues: India’s trade deficits with nations have always widened after signing free-trade-agreements (FTAs) with them, citing the cases with ASEAN, Japan, Korea, and Singapore, most of which are RCEP nations. It has also been pointed out that India’s vulnerable agriculture and dairy sectors, which are not in positions to compete with Australia and New Zealand, will be exposed to vagaries of global trade. Indian manufacturing is not competitive enough to face the vagaries of a free trade regime. Even after 27 years of liberalisation, inefficiency prevails due to a host of unimplemented reforms in the product and the factor markets. On the factor side, labour market reforms are incomplete. Labour productivity in manufacturing is still one of the lowest in the world with spatially fragmented labour laws are escalating the costs of doing business. Given this, Indian industry is hardly in a position to compete in the level-playing ground in a free-trade region. Differences: India apprehends that, given its $60-billion trade deficit with China, the RCEP demand to reduce tariffs on 90 per cent of the traded goods to zero will have a disastrous effect on its already struggling MSME sector. India is especially apprehensive about Chinese goods swamping its market, forcing domestic producers to cut production or shut down. India has expressed its reservations over inclusion of e-commerce in the RCEP talks. The RCEP draft is opposed to data localisation, while India fears the monopoly power of digital giants which includes the likes of Tencent and Alibaba. ASEAN+3: India could be out of the mega trade deal (RCEP). China has started pushing for a free trade pact between ASEAN + 3 (which includes the ten-member ASEAN, China, Japan and South Korea). This would effectively mean that among the 16 countries negotiating the Regional Comprehensive Economic Partnership (RCEP), all except India, Australia and New Zealand would get included in the proposed pact. China may be trying to push for an ASEAN + 3 arrangement to speedily create a new order in the region with itself at the helm to counter the challenge posed by the US with which it is engaged in a trade war. Data concern: The global digital or artificial intelligence (AI) economy is currently a two-horse race between the U.S. and China.  It is feared that all other countries, including the European Union (EU) and major developing countries such as India, will have to become fully digitally dependent on one of these two digital superpowers.  This will considerably compromise their economic and political independence, something referred to as digital colonisation. Solution: Efforts to escape such a dismal situation, like in the French and the U.K.’s AI strategies, numerous EU documents, and India’s NITI Aayog’s AI strategy, focus on one central issue — more data-sharing within the country, and better access to data for domestic businesses. With few global digital corporations such as Google, Facebook, Amazon and Uber, continually vacuum out India’s and Indians’ data, and then by default treat it as their private property it is difficult Way forward Despite all the concerns, the government must take into account that either slowing down India’s RCEP engagement or walking out of the talks at this stage would cut India out of the rules-making process for the RCEP and give China further space in the regional trade and security architecture. At a time when the U.S. has broken from the global consensus on multilateral trade agreements, an Indian walkout would endanger the united message that RCEP countries, which represent 40% of the global GDP, would wish to send out. It would also be a sharp departure from India’s “Act East” slogan and its extended outreach to ASEAN. Appropriate data policies must ensure that the required data is actually available to Indian digital businesses. Asserting a community’s legal right over data that is derived from, and is about, the community concerned, or about ‘things’ that belong to it. This is the concept of community data inscribed in India’s draft e-commerce policy. Data classification, data ownership rights, data sharing, data trusts must be dealt with Conclusion: Disengaging from signing binding agreements on uninhibited data flows across borders does not mean that a country would simply localise all data. Some kinds of data may indeed need to be localised, while others should freely flow globally.  It just means that a country retains complete data policy space, and the means to shape its digital industrialisation, and thus its digital future. Connecting the dots: India must not trade away its national data rights at the Regional Comprehensive Economic Partnership negotiations. Justify FOREIGN POLICY TOPIC: General Studies 2: India and its neighbourhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests Effect of policies and politics of developed and developing countries on India’s interests, Indian Diaspora. IND-US and Global Politics Global politics is changing at a fast pace.  The global order is now dipping into a vortex of disruptions largely caused by the United States, China (Trade war)and Brexit.  India also stands at the crossroads in terms of its foreign policy approach. India’s Foreign policy  options: Stable policy of non-alignment and strategic autonomy;  Join the bandwagon of unilateralism and be a permanent treaty ally of one of the superpowers, Embark upon a calculated trip with the objective of expansion in terms of forging new relations and exploring fresh territories by adopting a strategy of “multi-alignment and transactional autonomy”. Concerns in IND-US Relations: A  no-trade deal,  U.S.-Pakistan bonhomie Trade deal failure: The prospects of an agreement unravelled due to the failure to reach an agreement on Information and communications technology (ICT) products.  U S Wanted, The U.S. has wanted India to eliminate tariffs (20%) on ICT products, but New Delhi is concerned that this could open up the market to flooding by Chinese technology. The U.S. wanted greater access to Indian markets for medical devices, such as stents and knee implants, ICT and dairy products and sought the removal of price caps. The US had sought the removal of price caps (“Trade Margin Rationalization” or TMR) on medical devices and greater access for dairy products and some other categories of agricultural goods.  India wanted, The reinstatement of preferential market access to U.S. markets under the Generalized System of Preferences (GSP) program, which was revoked in early June.  It had also wanted facilitation of processes in agricultural product markets where it already had access (such as easier certification of food product irradiation facilities)  Greater access in some agricultural markets (table grapes, pomegranates for instance), US-Pakistan Bonhomie: United States has been one of the largest sources of foreign direct investment in Pakistan and is Pakistan’s largest export market.   Trade relations between the United States and Pakistan continue to grow  The U.S. government supports this relationship by funding reverse trade delegations, business conferences, technical assistance, and business outreach. Ind-US  Relations Good shades : India-U.S. civil nuclear deal, the ongoing defence cooperation of the past decade worth billions of dollars  The signing of three “foundational defence agreements”, i.e. the Communications Compatibility and Security Agreement, the Logistics Exchange Memorandum of Agreement and the Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation. Bad shades : Current trade challenges,  The U.S.’s hyphenation of India with China in its trade war  U S call for the removal of the “developing country” tag assigned by the WTO. During the 1971 war, the U.S. sent its fleet towards India to assist Pakistan. India’s procurement of defence material from Russia  US  unreal expectations such as India having military boots on the ground in Afghanistan. Concerns: The recent and abrupt abandonment by the Trump administration of the Kurds who assisted the Americans in fighting the Islamic State both in terms of resources and manpower should serve as a warning sign to India in terms of its Afghanistan strategy The current Indian dispensation must prepare for the eventuality of a sudden withdrawal of U.S. forces from Afghanistan which could lead to a complete takeover by the Taliban, with potential repercussions on India’s northern front. With respect to Pakistan, there is confused signalling from the official “advisers” of the White House The U.S. campaigned for Iran’s nuclear deal in 2015, then withdrew itself from the accord in 2018 and has now adopted a blanket sanction policy qua any nation dealing in oil transactions with Iran. Way forward: Before taking any decision on the future trajectory of India-U.S. dynamics, the Indian establishment must remain mindful of the unpredictability and inherent contradictions in U.S. foreign policy  At the same time, capitalise on U.S. “isolationism and retrenchment” by maintaining its time-tested policy of “non-alignment and strategic autonomy”. The Prime Minister must ensure that India-U.S. bilateralism survives the axe of unilateralism without sacrificing India’s “sweet spot” and tag of being “everyone’s friend”.  Mr. Trump needs to realise that India at this juncture cannot afford to get derailed from the tracks of globalisation, regional alliances, trade opportunities Conclusion: The convergence of perception between India and the U.S. on global and regional issues of common interest provides enormous opportunities for both countries to work closely in reshaping the global political order. Connecting the dots: A setting where there was a chariot of peace, joint co-operation, multilateralism and liberalism whose strings were controlled by institutions such as the United Nations, the World Trade Organisation (WTO) and the International Court of Justice has now become one of warhorses pulling in different directions to embrace unilateralism, protectionism and isolationism. Analyse. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note:  Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1)KHON RAMLILAis predominantly associated with which country/region? Thailand Vietnam South Korea None of the above Q.2)Consider the following statements aboutChief of Defence Staff (CDS) India does not have CDS as of 2019and creation of one will enable to offer seamless tri-service views and single-point advice to the Executive on defence management Currently, each Service has an individual Act passed by Parliament. A Joint Services Act on approval by the government will facilitate faster integration Which of the statement(s) given above is/are correct? 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.3)Rashtriya Gokul Mission is being implemented which ministry/body?  Niti Aayog Ministry of Agriculture Ministry of fisheries, animal husbandry & dairying Ministry of Rural development Q.4)GLOBAL HUNGER INDEXis being released by which organisation? World Food Organisation UNESCO World Bank None of the above MUST READ Refusing to recuse: On Justice Arun Mishra The Hindu Agents of change: On investing in women’s education The Hindu Not green, but greenwash The Hindu Intelligence of the future IE Light on national security IE