Sep 29, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 28th Sep, 2017

IASbaba’s Daily Current Affairs – 28th Sep 2017 Archives NATIONAL TOPIC: General Studies 1: Social empowerment General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes Molestation of women at BHU In news: An incident of alleged molestation of a women student of the Banaras Hindu University (BHU) has triggered a set of events which show the central university, particularly its vice-chancellor, the police and administration, in poor light. Images of male policemen charging female students have gone viral on social media, further fuelling anger over inaction of the authorities against the original complaint. Note the difference: A new wave and a greater assertion It is important to distinguish what is happening in BHU from similar struggles in elite universities in cosmopolitan Mumbai, Delhi or even Hyderabad. In JNU, for instance, even if the students belong to subaltern India, the institutional sub-culture promotes progressive ideas and collective bargaining with structures of power. In places like Benares, closer home for a majority of the protesting women students, an ultra-conservative culture permeates down to hostel messes where there is reportedly gender discrimination in quality and quantity of food served. These women in small towns and nondescript cities are battling structures and attitudes several shades more rigid and oppressive than in big cities where modernity has started to be viewed in the context of gender equality. Greater assertion: The BHU phenomenon is more noteworthy, more symbolic of the assertion of a new female identity in small-town India. The defiance exhibited by women students of BHU in the face of authority is a welcome collective assertion of their identity. The demand for a safe campus from young women from Gorakhpur or Deoria who simply want to walk alone, sometimes late in the evening, to think, or to chat with friends without fear of being molested shows a collective assertion for their own rights. A new wave- Of course, there are classes among women, and for every Akanksha Gupta there are countless others who are denied even primary school education, are married off at puberty and die in childbirth. But for those who do manage to break through these barriers, university education and learning are no longer just a certificate in the marriage market. These women are asserting their identity through attire, language and conduct. Certainly, the image of furious young women dismissing arguments curbing their freedom of movement and demanding safety, law and order, and dignity symbolises a new assertion. Official response: The comments of the proctor and Vice-Chancellor Girish Chandra Tripathi, reflect an inability to grasp the strength of these young women’s resolve to assert their freedom of movement in and outside the campus. If something happens to daughters, who is answerable? Security for boys and girls can never be at par. If we are going to listen to every demand of every girl, we won’t be able to run the university. All these rules are for their safety, all in favour of the girl students,” the VC asserted in response to the women’s demand for a safe campus. These official responses fit into the mindset that leads to the clamping of curfews, the tacit instructions for dressing “modestly”, and the setting up of ‘Romeo Squads’ supposedly to ensure safety for young women in a State that has reported a staggering 33 per cent rise in sexual harassment cases from 2014 to 2015, according to the National Crime Records Bureau (NCRB). The VC has sought to underplay the complaint as a case of “eve-teasing” and not molestation. Such blind and bigoted view of a students’ protest is unlikely to help the university understand why the campus has become restive. The university seems to think that it can address the student unrest by somehow clamping down on legitimate demands for dialogue. It reeks of a mindset predisposed to fixed ideas about how adult female students should behave and a clear attempt to refuse them agency in matters concerning their life on the campus. Deep- seated problems: The case and the way it has been handled draws attention to the many problems that plague one of the country’s most revered institutions of higher education. University policies that discriminate against women. A campus environment that seemingly allows cover for rampant sexual harassment and violence. A state administration whose law enforcement officials have effectively proven themselves incapable of handling a sensitive situation. The official statements shows that the problem is more deep-seated. It goes beyond the BHU campus and manifests itself in just about every public space, from the college canteen to the office boardroom to the train station and the public park—the routine threatening and compromise of a woman’s safety and her dignity. Internalizing of patriarchal norms: The authority seeing no problem with different security protocols for men and women is an example of how it has internalized the many misogynistic and patriarchal norms of society. Indeed, it is this mindset that has also fuelled the other ongoing instance of campus unrest in the country. Justice for women: As the Vishakha guidelines had noted, there are structural barriers that prevent women from seeking justice. Several studies conducted across India by NGOs working on women’s issues, such as Saheli, Sanhita, Sakshi, the South Asian Research and Development Initiative, the Lawyers Collective and the Yugantar Education Society, have shown that sexual harassment goes largely unreported. A student abused by her teachers or a junior assistant molested by a senior partner in the office is often reluctant to speak out for fear of being penalized in class or losing a promotion. Those who still come forward to lodge a complaint are often faced with a system loaded against them—where an internal committee of nominated members, for example, has little incentive to pursue justice. Way forward: The idea should be to address the issue of institutional failure that has shockingly resulted in as many as 74 per cent of such cases going unpunished rather than shifting the blame onto the women. Authorities and institutions need to alter their attitudes accordingly. Conclusion: Considering the historical, geographical, political and social context, these young women in Banaras are challenging the patriarchal idea in its stronghold. This incident serves as a warning for the establishment that expects women or students to remain subservient to age-old social mores. We need to acknowledge the brave young women at BHU who have stood up to an oppressive system, made themselves heard, and are fighting for a better future. Young women asserting their rights in India is a welcome, irreversible force. Everyone else has to grow up. The times are changing, even if ever so slowly. Connecting the dots: Molestation case in BHU and the following incidents are disturbing and equally signifies a welcome change. Discuss. Women in Indian university come after overcoming various hurdles. However, the lack of security within university campuses not only deter them to move forward but also discourage others from allowing girls to go for higher education. Critically analyze. 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 Making GST good and simple Background: The GST was India’s second tryst with destiny and introduced with the great hope that it would help India achieve economic greatness. But with each passing week, the new complex tax system is getting increasingly difficult to implement. The GST came in the wake of extensive collateral damage inflicted by demonetisation. The consequence has been a serious setback to several sectors of the economy. Not-to-do list: If the GST has to be made “good and simple” it is suggested that the following “not-to-do list” be adopted, at least in the short term. E-way bills- The implementation of e-way bills should be postponed for at least a year. The existing electronic system is woefully inadequate and in case of an issue with the system it will be disastrous if every movement of goods requires access to a portal for generation of an e-way bill. Further, most transport operators have only a few trucks and it will be cruel to inflict this torturous system on them when the Centre and states are ill prepared. Monthly returns- The proposed system of filing GSTR-1, GSTR-2 and GSTR-3 — three returns per month — proved to be unworkable and necessitated the GSTR-3B return which is a monthly summary. This monthly return should be continued for a year till the electronic infrastructure is improved. It is also worth reconsidering the need to file 36 monthly returns per year per state. Matching of invoices- This system does not exist anywhere in the world and there is not a single logical reason why this should be implemented in India. It will place an intolerable burden on the electronic infrastructure and entail huge compliance costs for the small and medium sectors. Exports- No sector has been dealt with a more crippling blow than the export sector. Under the earlier system, non excise exporters, merchant exporters and service exporters could simply export goods and services. In the GST regime, an exporter has to execute a letter of undertaking subject to eligibility or a bond with bank guarantee just to export. The government promised instant refunds but this has not happened. Merchant exporters who could earlier procure goods without tax are required to pay the GST which is a cash outflow. Serious glitches in the electronic system have adversely affected the refund system resulting in serious working capital pressure on exporters. Unless the earlier system is restored, Indian exports will be seriously affected. To-Do list: Following steps can help make the GST business-friendly and more in tune with Indian ground realities. One cannot wish away the large unorganised sector and it is not practical to bludgeon them into becoming instantly tax-compliant by digitisation. A small hosiery shop in Mumbai cannot purchase banians or socks from Tirupur. And traders in places like Delhi and Goa will be unable to avail the scheme because most products have to be brought from other states. It is necessary to seriously consider a flat-tax GST rate of, say, 10 per cent, on all businesses with a turnover of upto Rs 2 crore regardless of the product or service. The GST paid thereon should also be eligible for input credit. Such a reduction will be a terrific boost to the growth of goods and services, while eliminating huge paper work and electronic overload. Stop making changes in procedure and adding new requirements- Seven amendments to the CGST rules in a span of less than three months and multiple amendments to notifications have only increased the confusion. The FAQs, published at great cost, must be binding on the Centre and the states as they ensure pan-India certainty. he multiple rates of taxation and an elaborate classification system are bound to lead to classification disputes. It is imperative that classification is shrunk to three or four categories with not more than three applicable rates. A lower rate of GST will stimulate demand and spur economic growth because high taxes are always counter-productive. Indeed, a major part of the revenue of the states is from petroleum products and excise duty on alcohol. The collection of sales tax on various other goods is substantially less. Therefore, having a maximum GST of 18 per cent will result in substantially more revenue than the present complex system of higher rates of taxes. The proposed system of shared administration will also lead to serious difficulties. It is better that the states are given exclusive jurisdiction to deal with assessees upto a turnover of Rs 10 crore or even Rs 25 crore so that the Centre can only deal with assessees with higher revenue. Conclusion: The present GST system faces many challenges in its implementation. It is dangerous to proceed with the hope that things will eventually settle down. Immediate steps are necessary to ensure that India’s second tryst with destiny does not become a tryst with disaster. Connecting the dots: The GST introduction is surely a transformative and revolutionary change. However, various issues remains to be resolved. Discuss in detail the problems being faced in its implementation and how it can be resolved. 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Sep 28, 2017 RSTV Video

RSTV- The Big Picture : A wish list for Direct Taxes Code

A wish list for Direct Taxes Code Archives TOPIC: General Studies 2 Functions and responsibilities of the Union and the States Government policies and interventions for development in various sectors and issues arising out of their design and implementation. In news: After indirect taxes, the government is now looking forward to overhaul the 56 year old direct taxes covering income and corporation tax as it seeks to make the Indian regime make more contemporary and tailor it to current requirements. Now, the finance ministry is in process of setting up a task force to write the new tax law. Background India needs a modern income tax law that is easy to enforce, fair to all and relevant to the current economic context. The Income Tax Act of 1961 has become somewhat outdated, and complicated with amendments and modifications introduced over the years. This is not the first time an overhaul of India’s direct tax regime is proposed. In the late 1990s, the Planning Commission set up a taskforce to review the income tax system In 2002, high-level panel under Vijay Kelkar suggested several radical measures to reform the tax system. It was last time started in 2009 when the direct taxes code was released which would sharply cut tax rates, remove exemptions and offer a transparent and predictable income tax regime. But tax reforms couldn’t be passed as the new government focused on indirect taxes. The complicated structure There are two things asked for corporate tax Rates are too high because there are many exemptions. So the effective rate is not near to the legislated rate. The plethora of exemptions-whether they all are necessarily well designed or distorting. The taxation has become more complicated and litigation oriented. This had to be avoided and make it as simple as possible. For this there is a need to remove exemptions. But the government will have an agenda every time- WHAT TO PUSH? Whether it is an industry at a particular place or which type of industry- like power sector and then there will be exemptions given and whole cycle of amendments will start. Replacing income tax act 1961 It was thought about in 2008 and 2009.  But it was shelved as there was opposition from parties affected by removal of the exemptions. Two reasons for non-implementation of DTC 2009 Interest groups were trying to stall the process because the exemptions would be withdrawn When the tax reforms are talked about, it is about bringing the down the tax rates. The rate of foregone taxes in short term is very high. If economy is not doing well, then it will be disastrous as the risks gets further aggravated. In 2011, the economy was going down and government couldn’t introduce the DTC 2009. At present there is a problem of investment in corporate sector drying up. If at this point there is tinkering with incentive related investments, it may worsen the situation. Around the world, exports have begun to pick up but that is not seen in India. This is now of the biggest growth concern. Create a platform Recently, the Standing Committee on Finance tabled a report which said that without implementation of DTC, the intended gains of GST will not be felt. The purpose of a direct tax reform will be defeated that if the government kept on doing piecemeal amendments in income tax laws. The government can start to work out the tax reform and as it takes time to align the key stakeholders, then it’s a welcome move. The government is unlikely to move to the new regime at the start of 2019-20 financial year, but may want to complete the ground work. GST and DTC There is a connection between GST and Direct tax reform. GST will bring more people in formal payment system. The number of assesses and tax collection have gone up despite slowing down of economy. The success of new DTC will rest on success seen with GST. The anagram of Good and simple tax is yet to be made a reality. The GST has to be stabilised and wait for economy to recover. When this happens, the short term pains of GST will be taken over by long term benefits of GST. If GST becomes a success, in the next budget, the government can claim to validate this success. The customers will pay less. This would actually instead of having inflationary and demand-reducing impact, it could turn around and work as upping the demand. Then the government can do few changes in the DT like allow to reduce the number of slabs and increase standard deduction rates. Direct Tax reform in brief As far as broad concept of direct tax bill is concerned, the heads of the incomes should be rationalised. The expenditure should directly relate to the earning of the income by giving minimum exemptions. Exemption rates are also decided by finance ministry. Thus, at the end of the day it has to be said which things are to be taxed, which persons will be taxed and what would be there allowable expenditure. If it is made simple, it will go a long way in helping to boost direct tax collections and minimize litigation. Best practices adopted Treatment of income from capital. For eg exemption of dividend incomes with individuals and treatment of long term capital gains. There cannot be a situation of standardised rates when the people who own capital earn substantial income which are either de-facto tax exempt or taxed at low rate. For eg buy backs are not taxable as dividend income as it is counted as capital gains. This distortion in decision making at the corporate level should be avoided. There should be close look at the exemption to the corporate tax and way the income is treated from ownership of capital in the hands of individuals. Conclusion Any tax change should be equitable to the tax payers, transparent, free from manipulation and things that facilitate better enforcement. For corporates- a single tax structure would augment growth and if there is growth, everybody benefits. Positive impact on economy with tax structure changes. Make it a user friendly act. There cannot be tax on agriculture sector as it is beyond domain of parliament (It is with states), but many times agriculture income is used to launder money. So when the agricultural income crosses 1 or 2 lakhs a year, they should be made to file the return, even if they don’t have non-agricultural income. The income generated in many parts of farming sector are very high to justify. On a lighter note: A tax reform is the one which makes tax lawyers and CAs unhappy. Connecting the dots: What is the journey to have direct tax reforms till now? Critically analyse its implementation in current event of other economic reforms.

Sep 28, 2017 AIR

All India Radio (AIR) : Prevention of Drug Abuse and Trafficking

Prevention of Drug Abuse and Trafficking ARCHIVES Search 28th June 2017 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. Structure, organization and functioning of the Executive In news: International day for anti-drug abuse and illicit trafficking is observed on 26th June. The UNGA decided to observe this day, in 1987, as an expression of its determination to strengthen action and cooperation to achieve the goal of an international society free of drug abuse. Theme of 2017 is 'Listen First.' Drugs in India Drug menace is a global problem. Over the years, level has gone down in terms of publicity against drug proliferation. The drug consumption has gone up which is proved by empirical evidence. India is situated between two important drug supply centers: Golden crescent and golden triangle.  Because of this, India has always been in transit as well as gradually a consumption point. So it is difficult to say that drug abuse has come down. The seizures have increased by different agencies. So when more amount of drugs are seized, it means there is a tendency for bringing more drugs. Picture credit: https://image.slidesharecdn.com/deaddictionproginindia-140723022827-phpapp01/95/deaddiction-programme-in-india-14-638.jpg?cb=1406082774 Picture credit: https://qph.ec.quoracdn.net/main-qimg-88ab01486c64a51ea3ad321b13961d8f There is basically seizure of heroine which comes from South West Asia, mainly Afghanistan and Myanmar. Other source is from illicit production of opium from illicit cultivation like Cannabis is sourced from Nepal. Another is internal production in India at high altitude area and some north east area. There are some African drug traffickers who get cocaine from Latin American companies. Besides this, there is a demand of synthetic drugs, party drugs. Drugs like amphetamine are synthetic drugs that are diverted from chemical factories. Some of them are medicinal drugs also which are consumed without prescription. Steps by narcotics to curb the menace NCB has small presence number wise. Not all state HQs are covered in their location. However, it broadly keeps an eye on big supplies. There is a responsibility of sharing information with international organization. There is collaboration and bilateral agreements with foreign countries. It also functions as a bureau- data collection and trend analysis is done. As per Narcotic Drugs and Psychotropic Substances Act, 1985, the state police can conduct arrests and searches under this law. Some of the state organizations have anti-narcotics unit eg. Punjab. As NCB’s presence is less, it does coordination with state police and go after drug suppliers and traffickers. Ganja grows wild in some places. Some people also grow poppy. So NCB also coordinates with state agencies to destroy the illegal illicit poppy cultivation and commercial quality cannabis cultivation. Not only them, but certain types of authorized government officers (officials of customs, excise departments) also have the powers to conduct and arrest or search. Provisions of law to deter routine consumer and petty suppliers. The NDPS law covers commercial quantity and non-commercial quantity. There is schedule in that in which quantity of drugs is fixed and commercial quantity is defined. The punishment for possession of commercial quantity of narcotics drugs are very high and for peddlers and consumers is less. Ill effects of drugs It breaks the body Spoils the person emotionally, physically and socially. The drugs are addictive. Once addicted, the person cant live without it. This destroys the whole person and family. Way forward NCB in collaboration with state agencies and concerned ministries, organizes awareness campaigns. Awareness campaign is also a continuous process. Other agencies such as social welfare or health department have to also contribute in this fight against drug menace. De-addiction and demand reduction is important. Demand reduction is also a job that the government agencies will have to ensure. For demand reduction, there are addition centres. The ministry of social justice and empowerment gives money to some NGOs to work in this field. There should be rehabilitation in society. It is difficult to get the addicted people back to creative level so government has to make necessary and sufficient rehabilitation centres with required resources to bring people back to mainstream society. If a common man has information about drug supply chain or peddlers or wants to inform about someone suffering from this menace, they can contact NCB. For supply reduction, they can contact state director. Public campaign- anti-drug consumption campaign could be launched with more vigour, starting from school children particularly of higher grades. There are marathons, walkathons on this issue. There are advertisement placed in railways and metros. Collaborate at international and multilateral forums so as to ensure that those foreign jurisdictions also act to stop the supply into India. There are various bilateral agreements and treaties with countries in which sharing of information and facilitating investment is also important. Border guarding forces see that drugs don’t enter India. As a society, “say no to drugs”. Make efforts to take action against them who are involved in supplying drug to drug traffickers. At least the youngsters do not fall prey to this menace in the times to come should be the aim. It is not a cool thing to do which can be done once for trial and get out of it quickly. Also, they should be made aware to not get into peer pressure. Connecting the dots: Drug menace has the capacity to ruin India’s demographic dividend. Explain how India as a society and sovereign country tackle this issue.

Sep 27, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 27th Sep, 2017

IASbaba’s Daily Current Affairs – 27th Sep 2017 Archives NATIONAL TOPIC: General Studies 1: Urbanization, their problems and their remedies. General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Waste Management for Soil Health Background: Keeping cities clean is essential for keeping their residents healthy. Our health depends not just on personal hygiene and nutrition, but critically also on how clean we keep our cities and their surroundings. The proliferation of dengue and chikungunya are intimately linked to the deteriorating state of public health conditions in our cities. If we do not rise to the occasion to manage the waste that we generate and fail to create clean and healthy cities, we will face many more man-made disasters such as we have seen in recent months in Deonar, Bellandur, and Ghazipur. On agenda: The good news is that waste management to keep cities clean is now getting attention through Swachh Bharat Mission. Issue: Much of the attention begins and stops with the brooms and the dustbins, extending at most to the collection and transportation of the mixed waste to some distant or not so distant place, preferably out of sight. The challenge of processing and treating the different streams of solid waste, and safe disposal of the residuals in scientific landfills, has received much less attention in municipal solid waste management than is warranted from a health perspective. Instead of focusing on waste management for health, we have got sidetracked into “waste for energy”. In the process, we are opting for financially and environmentally expensive solutions such as incineration plants which are highly capital-intensive. While the National Green Tribunal (NGT) does not allow incineration of mixed waste, nor of any compostables or recyclables, enforcement is a challenge, and the danger to health from toxic emissions looms large. An alternative to farmyard manure: City compost from biodegradable waste provides an alternative to farmyard manure (like cowdung) which has been valued from time immemorial for its rich microbial content that helps plants to take up soil nutrients. It provides an opportunity to simultaneously clean up our cities and help improve agricultural productivity and quality of the soil. Improving soil health: India’s Green Revolution rescued us from huge dependence on food imports during droughts by using high-yielding varieties of seeds and chemical fertilisers to boost the productivity of food grains. But over time, excessive and imbalanced use of chemical fertilisers has led to severe deterioration in the quality of soil. Organic manure or compost plays a very important role as a supplement to chemical fertilisers in replenishing the nutrient-depleted soils. City compost can be the new player in the field. Benefits of compost on the farm are well-known. The water holding capacity of the soil which uses compost helps with drought-proofing, and the requirement of less water per crop is a welcome feature for a water-stressed future. Because of good water retention, farmers do not need second or third sowing if rains fail. By making soil porous, use of compost also makes roots stronger and resistant to pests and decay. Farmers using compost therefore need less quantity of pesticides. There is also evidence to suggest that horticulture crops grown with compost have better flavour, size, colour and shelf-life. Weed-free unlike farmyard manure: City compost has the additional advantage of being weed-free unlike farmyard manure which brings with it the seeds of undigested grasses and requires a substantial additional labour cost for weeding as the crops grow. City compost is also rich in organic carbon, and our soils are short in this. Fortification of soil with organic carbon is an essential element of integrated plant nutrient management as it increases the productivity of other fertilisers. City compost can also be blended with rock phosphate to produce phosphate-rich organic manure. Chemical fertilisers when used by themselves pollute surface water with nitrogen runoff because only 20 per cent to 50 per cent of the nitrogen in urea is absorbed by plants. The rest runs off into streams and lakes. The addition of compost or organic manure reduces nitrogen wastage, as its humus absorbs the nitrogen and acts like a slow release sponge. Rules and regulations: SC directive- Recognising the importance of organic manure for the balanced nutrition of crops and restoring soil health, the Supreme Court had directed fertiliser companies in 2006 to co-market compost with chemical fertilisers. However, this direction went largely unheeded. The Solid Waste Management Rules 2016- It makes the co-marketing of compost mandatory. The MDA Scheme- To provide incentive for co-marketing to the fertiliser companies, in February 2016, the Government of India’s Department of Fertilisers notified a policy to promote the use of city compost by offering Market Development Assistance (MDA) of Rs 1,500 per tonne on the purchase and distribution of city compost through the rural outlets of these companies. In 2017, the MDA scheme was extended to compost manufacturers on bagged compost. Way ahead: The MDA scheme has not worked well because of its administrative complexity and it needs to be simplified. The high volume but low value nature of compost also makes it not so attractive for fertiliser marketing companies to promote its use. While compost manufacturers must meet the quality specifications laid down by the Fertiliser Control Order (FCO), it is equally important for fertiliser companies to make vigorous efforts to market city compost using their well-connected dealer channels and help develop this nascent sector. A possible solution in such a situation would be to find a way to make the payment of fertiliser subsidy to the fertiliser companies conditional on the co-marketing of compost. The state agricultural departments can also help facilitate the use of city compost through their widespread extension networks. The city waste needs to be composted before making it available to the farmers for applying to the soil, cities would be cleaned up and the fields around them would be much more productive. It would, however, require that delivery mechanisms be set up for the delivery of city compost to farmers. Conclusion: Assuming that urban India generates 70 million tonnes of municipal solid waste in a year, and assuming 15 per cent yield of compost, this would provide 10 million tonnes of city compost annually. Quite apart from cleaning up the cities of biodegradable waste, this would be a major and sustainable contribution to improving the health of our soil without further damage by excessive chemical inputs. That would surely be a marvelous transition from waste to health. Connecting the dots: Converting city waste into compost will not only help clean up cities of biodegradable waste, but would be a major and sustainable contribution to improving the health of our soil. Elaborate. INTERNATIONAL 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. Important International institutions, agencies and fora- their structure, mandate United Nation's Ineffectiveness Background: The picture of the UN’s ineffectiveness on each of the issues confronting the world today is grim. The Secretary General António Guterres in his speech listed the world’s seven biggest threats: nuclear peril, terrorism, unresolved conflicts and violations of international humanitarian law, climate change, growing inequality, cyber warfare and misuse of artificial intelligence, and human mobility, or refugees. Each of these issues saw little movement at the UNGA. Nuclear peril: The UN’s actions in response to North Korea’s missiles and nuclear tests just amounted to another round of sanctions against the Kim Jong-un regime. Past history points to the slim chances of success of this tack. Since 1966, the UN Security Council has established 26 sanctions regimes, of which about half are still active. In some cases, the sanctions only squeezed the country’s poor, as in Zimbabwe (Southern Rhodesia) and DPRK itself, while not changing its belligerent positions. In most cases, the misery was heightened by international military interventions, from Yugoslavia to Libya and Yemen. The truth is that sanctions do not work on rogue states; they only help isolate their populations from the world, which in turn tightens the regime’s stranglehold on its people, and strengthens its resolve to disregard the UN. Lacking guarantees: Libya did relinquish nuclear weapons but still NATO destroyed Libya anyway. This is a disincentive. The UN failed to censure NATO on violating its mandate only to the responsibility to protect (R2P) and not for regime change in Libya in 2011. To other countries that may enter talks, as Iran did, the imminent threat from the U.S. of walking out of the Joint Comprehensive Plan of Action (P5+1 agreement) would make them question the efficacy of the UN in guaranteeing any deal struck. Other decisions of the Trump administration in the U.S., to walk out of the climate change agreement as well as threaten to cancel its funding contributions to the UN, have also seen little comment from the world body, which further reduces the respect it is viewed with. Lack of respect against sanctions: Nowhere is that lack of respect more obvious than regarding Myanmar, where the military junta faced sanctions for years. Despite inviting former UN Secretary General Kofi Annan to prepare a report on Rakhine state, post-democracy Myanmar has been able to carry out one of the region’s most frightening massacres just days after the report was submitted. On the basis of satellite pictures, and eyewitness accounts, the UN Human Rights chief called military action a “textbook case of ethnic cleansing”, as half a million Rohingya fled for their lives from Rakhine villages that were then burnt down, with landmines laid along the border to Bangladesh to prevent their return. The Security Council is short on ideas and late on action, and restoring more than a million stateless refugees to their homes seems a daunting task, even for a world-body that was set up expressly to ensure that such a displacement would “never again” be allowed to occur. On issue of terrorism: A similar impotency has been imparted to the UN on the issue of terrorism. India’s grievances are a symptom of the UN’s powerlessness to enforce even the basic strictures against terrorists it sanctions, given that Hafiz Saeed and associates now plan to stand for public office in Pakistan, while others like Zakiur Rehman Lakhvi, who received bail despite UN financial sanctions, have simply disappeared. Meanwhile India struggles to convince China to allow the Security Council to sanction Masood Azhar, whose release in exchange for hostages in 1999 should have been proof enough of his perfidy. On cyber-attacks: The world is seeing an increasing number of cyber-attacks, especially from non-state actors. The UN must at least do more to act on attacks carried out by states, especially those that are permanent members of the Security Council. Both Russia and the U.S. have been known to use cyber warfare, but equally the use of new-age warfare — drones, robotic soldiers and remote killings — must see more regulation from the international community. Conclusion: What UN’s first Secretary General, Trygve Lie said in 1952, “The United Nations will not work effectively if it is used merely as forum for destructive propaganda. Neither will it work if it is used only as a convenience when national interests are directly involved, and regarded with indifference, or bypassed or opposed, when the general world interest is paramount”, still hold true. Connecting the dots: The world is facing some of the biggest threats ranging from nuclear peril, terrorism, unresolved conflicts, climate change, growing inequality, cyber warfare, refugees etc. In this light it is the need of the hour that the United Nations brings changes in the way it governs. Critically analyze. 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Sep 27, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 51]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 51] Archives Q.1) Valongo Wharf Archaeological Site is located in Rio de Janeiro Valencia Florida Sylt Q.2) Consider the following statements A masala bond is a rupee-denominated bond issued in the overseas market Foreign Portfolio Investors (FPIs) are permitted to invest in Government Securities with a minimum residual maturity of one year but have been prohibited from investing in T-Bills Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements about Wular Lake It is the largest fresh water lake of India It is fed by the Chenab River The Tulbul navigation project is located just below the exit of the Wular Lake Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) Graded Surveillance Measure (GSM) is introduced by Securities and Exchange Board of India Reserve Bank of India Insurance Regulatory and Development Authority Pension Fund Regulatory and Development Authority Q.5) Consider the following statements about Hyper spectral imaging It can be used to calculate the nutrients as well as other minerals in the soil and be used to gauge its health ISRO is going to launch the Hyperspectral Imaging Satellite or HySIS — using a critical chip it has developed Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution - Click here All The Best  IASbaba

Sep 27, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 26th Sep, 2017

IASbaba’s Daily Current Affairs – 26th Sep 2017 Archives 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. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Framing of A New Industrial Policy Background: A new industrial policy is being framed by the government. Changed outlook: Until the 1980s, industrial policy was driven by the theory that the Government must closely manage the flow of investments into selected industrial sectors to nurture their development. Dissatisfaction with this approach, primarily because it stifled entrepreneurship, made the Government change its approach from the 1990s towards a free market approach with the expectation that market forces would cause industrial growth to accelerate. However, that did not happen. India’s manufacturing sector, which should have been a principal driver of industrial growth and creator of jobs, languished at 16 per cent of the economy. While the services sector grew, overall job growth did not keep pace with the growth of the population. The underlying approach to industrial growth in India until the 1990s was top-down planning, of attempting to manage the inputs-outputs of the economy through licenses to produce and allocations of resources. After the reforms of the 1990s, the paradigm shifted to the other extreme, of ‘leaving it to the market’, and hoping that freedoms to invest and produce would result in the growth of more jobs and livelihoods. However, the bureaucracy continued to tie up enterprises in knots. Comparison with China: By 2009, Chinese capital goods’ production capacity was about 50 times as large as India’s and India was importing machinery, power generation equipment, and other capital goods in increasing quantities from China. India’s industrial sector had become much smaller than China’s and lost its depth too. Process of industrialization: The process of a country’s industrialization is a process of enterprises in that country acquiring capabilities to produce more complex products that they could not produce before. Workers learn skills they did not have before. Managers of enterprises learn to apply technologies and manage processes that they could not before. Government policymakers and implementers learn how to create conditions for industrialization. Framing of new industrial policy: What needs to be done? The development of enterprises and the development of skills of workers cannot be put into separate, disconnected policy silos. Case study- The skills provided to people must fit the jobs they do. Therefore, successful programmes to develop skills cannot be managed within a ministry dedicated to labour or skills. This approach, wherein industrial training institutes were under the labour ministry (and may now be moved to the skills ministry) resulted in the mismatch between the output of the skills programmes and requirements of industry, and trainees finding that they could not get jobs. Less than 20 per cent of the millions trained by this government’s (and the previous one’s) drive to skill millions have found jobs. On the other hand, enterprises complain to the industrial development department that they cannot grow because they do not have people with the requisite skills. Therefore, policies for developing skills must mesh with policies to stimulate growth of enterprises. A ‘systems view’ is required to connect many parts of the system and many policies — for investment promotion, trade regulation, enterprise regulation, labour policies, etc — to enable the economy to deliver the results citizens want from growth, namely better jobs and livelihoods. Case study- Improvements to one part of the system can have unintended consequences on other parts. Making it easier for one sector to produce by reducing duties on its inputs creates inverted duty structures which can hurt the growth of the input sector. This has resulted in the weakening of India’s machinery sector, for example, and weakened the country’s industrial base. The effects of policies that may be good for one part of the system on other parts must be understood before they are implemented. A ‘whole of government’ approach is required for coordinated implementation — at the Centre, in the States, and on the ground — to make it easier to do business in India. Click here for enlarge Industry’s inadequate expenditure on research and development: Huawei’s R&D expenditure (around $6.5 billion) is about the same or more than that of Indian industry, while Microsoft spends (around $12 billion) about the same as the Indian government. If India has to realize its ambition of increasing its share of manufacturing in GDP (gross domestic product) to around 25% from 17% currently, industry will have to significantly step up its R&D expenditure. Currently, R&D spending amounts to around 0.9% of GDP. The private sector in India accounts for around 35% of the country’s total R&D spending, compared to many advanced economies as well as China, where the corresponding number is around 70%. This will need to be addressed by the new industrial policy, else it risks remaining a structural headwind that will continue to weigh on India’s productivity growth going forward. The new industrial policy should aim to push for technological deepening in sectors where Indian companies are globally competitive and also provide a road map to enable industry to diversify across sectors. Healthcare is one sector where there is significant potential to increase both public and private R&D expenditure. Focusing on healthcare equipment and services for example, where India has no R&D presence, would assist in technological deepening within the healthcare sector—and also in providing affordable and accessible healthcare through “frugal” medical devices. Conclusion: Making of the industrial policy should be a consultative process and it should be well coordinated across various ministries and backed by strong research. The framing of the new industrial policy should be seen as an opportunity to chart a meaningful path for industry’s role in India’s development. Connecting the dots: The new industrial policy being framed must focus on a holistic approach towards handling the issues being faced by manufacturing sector in India. Discuss. DEFENCE/SECURITY TOPIC: General Studies 3: Security challenges and their management in border areas; linkages of organized crime with terrorism. Role of external state and non-state actors in creating challenges to internal security. General Studies 2: India and its neighbourhood- relations. Maintaining regional stability Background: It has been one year since the special forces of the Indian Army carried out surgical strikes to destroy terror launchpads in Pakistan-occupied Kashmir on September 29, 2016. It is important to take stock at this point on how India-Pakistan bilateral relations and the regional security situation have evolved over the past year since the strikes. Turn of events: Being critical at international forums- Showing no appetite for a bilateral rapprochement, the two acrimonious neighbors have limited their interactions to firing across the borders in Jammu and Kashmir and calling each other names in global forums. At the United Nations General Assembly a few days ago, for instance, External Affairs Minister Sushma Swaraj termed Pakistan a “pre-eminent exporter of terror” — to which Pakistan’s Permanent Representative to the UN, Maleeha Lodhi, responded: “India is the mother of terrorism” in South Asia. Future of SAARC in jeopardy- The future direction of the foremost regional forum, the South Asian Association for Regional Cooperation (SAARC), remains unclear after India dropped out of the 2016 Islamabad summit in the wake of the Uri terror attack. (The summit was eventually postponed.) Embattled regional stability- The regional security situation remains embattled, because of confused American policies in South Asia, continuing turmoil in Afghanistan, heightening India-China rivalry, and the India-Pakistan hostility. Regional stability- Challenges: There are two sets of challenges that are more apparent today, one year after the surgical strikes. One, the India-Pakistan escalation ladder has become far more precarious today it has ever been in the past one and a half decades, i.e. since the ceasefire was agreed to in 2003. The recurrent, and almost daily, occurrence of border battles between the two militaries in Jammu and Kashmir today have a worrying potential for escalation to higher levels. The border stand-offs often lead to, as is evident from the data from the past 15 years, military, political and diplomatic escalation as well as contribute to escalating an ongoing crisis. The September 2016 operation has made ceasefire violations more worrisome in at least two ways: Pakistan has been retaliating ever since the surgical strikes by increasing the pressure on the frontlines; and Surgical strikes have reduced the critical distance between ceasefire violations and conventional escalation. The perils of preventive strikes are unpredictable. Preventive strikes in hyper-nationalist bilateral settings could defy our expectations and go out of control, with disastrous implications. Have the surgical strikes helped the country’s overall national security environment? The Central government argues that surgical strikes have been a spectacular success. Has surgical strikes improved our national security in plain practical terms. The first obvious question to ask is whether the strategy of punishment has worked vis-à-vis Pakistan. There are two reasons why the strategy of punishment may not have worked. For one, A strategy of punishment requires consistency and commitment. The momentum achieved by the surgical strikes was not followed up (despite several attacks thereafter), nor was the government committed to its declared determination to respond firmly to terror strikes, thereby lacking in both consistency and commitment. Pakistan’s responses thereafter of supporting insurgency in Kashmir, aiding infiltration across the border, and allegedly supporting attacks on the Indian army convoys and bases continued without much reaction from New Delhi This has led to a visible lack of credibility on New Delhi’s part which makes one wonder whether, bereft of domestic political uses, there was any strategic planning behind the September operation. National security in peril: By all accounts, India’s national security environment is fraught today. Terror attacks in Kashmir continue to break the calm. Launch pads and terrorist camps have increased since last year. Since the surgical strikes, at least 178 militants and 69 Army personnel have been killed. Forty-four army personnel were killed between January and September this year, compared to 38 last year between January and September (including those killed in the Uri Army base attack). Surgical strikes may have been a tactical victory for New Delhi, but its strategic value is far from settled. Conclusion: With two hostile neighbours on either side, terror attacks against India on the rise, and the South Asian neighbourhood unsure of India’s leadership any more, New Delhi has a lot to be concerned about the continuation of its pivotal position in the region and the nature of its future engagement with it. The events since September last year have further contributed to South Asia’s regional ‘insecurity complex’. For a country that has traditionally been the regional stabiliser, New Delhi must avoid aggression and self-imposed regional exclusion. Connecting the dots: ·         A year after the surgical strikes across the Line of Control, India must recover its role as a regional stabiliser. Critically analyze. 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Sep 26, 2017 AIR

All India Radio (AIR) : India Russia Defence Relations

India Russia Defence Relations ARCHIVES Search 25th June 2017 http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx TOPIC: General Studies 2 Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Recently, Indian PM and Russian President decided to “upgrade and intensify” defence ties through joint manufacture and co-production of key military hardware, during the annual summit. Soon after that, Defence Minister of India co-chaired 17th meeting of the India-Russia Inter Governmental Commission on Military-Technical Cooperation with Russian counterpart. A military cooperation roadmap during the meet wherein the roadmap is to become the basic document in planning bilateral contacts. Russia has been one of India’s key major suppliers of arms and ammunition. However, it has been a long-standing grievance of armed forces that supply of critical spares and equipment from Russia takes a long time affecting maintenance of military systems procured from that country. Thus, it is critical that Russia adopts a liberal approach in sharing technology for components of major defence platforms to keep them in operational readiness as most of India’s weapon systems are of Russian-origin. Nature of India- Russia relations It is an old relation between these countries, from the time when USSR was in existence and soon after India’s independence. The relationship between both countries is called special and privileged strategic partnership. It is a privileged relationship as it is distinctively bilateral. Strategic relationship- from the late 60s when the relationship between both these countries is reviewed, today it is strategic in terms of military capability that India has been able to obtain from USSR/Russia. It also has a politico-diplomatic connotation in a strategic sense. In UNSC, USSR would stand by India on some of issues which could have caused India a politic-diplomatically difficult situation in international arena. The present meeting was looked to give a fillip to bilateral relationship particularly in defence sector, which seem to have gone into slight degree of dormancy. Let us look at present military relation with Russia India is taking four Grigorovich frigates from Russia. Grigorovic has association with India’s talwar class. The agreement is interesting because at the last BRICS meeting, Russia had a peculiar problem which is that the frigates were made from Ukraine engines. Due to political and military conflict with Ukraine, they had built ships but did not have engines. The way out was that India would buy these frigates and have a separate bilateral with Ukraine for engines. Along with that there is another agreement in principle that there can be lease of another Akula class multi-purpose nuclear submarine which would enable India to acquire greater levels of training. In addition, there is significant agreement for Kamov helicopter which envisages 60 helicopters delivered in fly away condition and rest 140 be made in India. This would be first time India would be entering into significant helicopter programme as far as Build In India is concerned. If there is a technology transfer, it would enable aerospace manufacturing and designing capability in India. These are some kind of positive steps being taken. Indian Airforce military requirements The IAF is in a critical situation as far as gaps are concerned. There is a talk of inducting 126 aircrafts for more than 10 years and no tangible decision has been taken so far. The reason is there are expensive commitments that would have to be made for a very long time. Once the decision is taken and financial commitment is made, there cannot be change of course midway. Thus, government of India is taking its time. The purchase of aircraft means lifecycle, spare parts, maintenance of 25-30 years. Thus India was hoping of getting into a kind of arrangement that would have all aspects covered in an appropriate manner. The fact that India is not proceeding at expected pace with Russia shows that India is looking at other options which are Europe as possible long term partner, USA (one of the private entities of India as a part of strategic programme would be identified where USA is a partner to provide technology and knowhow so that India starts manufacturing modern fighter aircraft in India). The 5th gen fighter aircraft is one of the key components of long-term air force planning. India needs 42 squadrons which is currently at 32. The single engine fighter jet talked about for 5 years now is yet to come up. The 5th gen aircraft seemed like a possible option however now it being on back burner so there is need to infuse traction into other sectors and platforms which are identified above. These are serious inventory issues and India has to look at its airpower holistically. Former USSR/Russian support In the evolution of India’s composite military capability, missile is one area. Brahmos is good example where India has been able to benefit from close cooperation with former USSR and now Russia. Other significant aspect is Arihant- India’s nuclear propelled SSB. The early stages of India’s programme as far as nuclear submarine design and building is concerned, at time cold war, first INS chakra was given on lease to India by USSR in 1988. No navy can move into nuclear propulsion in a hasty and unprepared manner. So it was one of the greatest contribution of Russia made in India’s strategic capability was to enable India’s entry into nuclear propulsion and sea. If India’s maritime aspirations are to be met, nuclear propulsions is kind of technology that needs to be acquired. Conclusion Around 67% of supplies come from Russia. For next 25 years, Russia is going to be dominating platform in India. And in near future, USA is going to become a significant supplier. But for now, both India and Russia feel that they need to take the level of cooperation in defence sector to a higher plane. Both sides have benefited looking in long term. Soon after end of cold war, there was considerable disarray in Russia which removed India from focus. By that time, India was already looking for other options. Russia’s ability to meet India’s expectations was below the median. This is in relation to timelines of supply of Gorshkov. The cost of platform and the timelines agreed upon were repeatedly extended. The Russian ability to provide spare maintenance and other kind of technical support that India was seeking was not as per expectations. The decision now to "upgrade and intensify" bilateral defence cooperation through joint manufacture, co-production and co-development of key military hardware and equipment will be serving a crucial phase in relationship between both countries. Connecting the dots: India and Russia have been strategic partners even before cold war era. Critically analyse the defence relation between two countries and what can be possible way forward.

Sep 26, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 50]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 50] Archives Q.1) The recently launched Saubhagya scheme is associated with Rural and Urban Electrification Primary Education Skill Development Micro-loans Q.2) Swiss Challenge is concerned with Black Money European Union Social Impact Assessment A process of giving contracts Q.3) Consider the following statements about Agreement on Agriculture (AoA) It was negotiated during the Doha Development Round of the General Agreement on Tariffs and Trade All domestic support measures considered to distort production and trade (with some exceptions) fall into the Amber Box Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.4) Consider the following statements about G-33 countries. It is an Informal coalition seeking to significantly reduce fisheries subsidies It also seeks more disciplines on the use of anti-dumping measures Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) Consider the following statements about ‘Kaushal Panjee’ It is connected to the Social Economic Caste Census (SECC 2011) It aims to be citizen centric end-to-end solution to aid mobilization of candidates for Rural Self Employment Training Institutes (RSETI) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution - Solution will be uploaded tomorrow  All The Best  IASbaba

Sep 25, 2017 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs 25th Sep, 2017

IASbaba’s Daily Current Affairs – 25th Sep 2017 Archives NATIONAL TOPIC General Studies 3: Issues related to direct and indirect farm subsidies and minimum support prices Inclusive growth and issues arising from it. General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections Strengthening the agricultural sector Background: Last month, the NITI Aayog released the Three-Year Action Agenda (TYAA) for the government, a roadmap for reforming the various sectors of the economy. Its agenda for the agriculture sector, and how best it can rescue the sector has been discussed in this article. The TYAA: It talks of action pertaining to- Increasing productivity of land and water. Reforming agri-markets on the lines of e-NAM, Reforming tenancy laws. Relief measures during natural disasters. The recommendations are good and have been suggested by earlier committees like the High Level Committee (HLC) on Management of Foodgrains and Restructuring FCI (headed by Shanta Kumar), the Task Force on Agriculture headed by the Vice-Chairman of the NITI Aayog (May 2016), the four volumes (out of 14) of the Committee on Doubling of Farmers’ Income etc. The government, thus, has ample reference points for reforming the food and agriculture sector. Issue: The TYAA, however, does not prioritise policy actions, nor does it talk about the role of trade policy in agriculture, or reforming the massive system of food and fertiliser subsidies. 5-Point action plan based on priority: First, the government needs to improve the profitability of cultivation by “getting markets right”. Second, it needs to invest in water to fulfil its slogan of “har khet ko pani” and “more crop per drop”. Third, should be providing Direct Benefit Transfer (DBT) of food and fertiliser subsidies to the accounts of targeted beneficiaries, which can release resources for investments. Fourth it should ensure that the new Pradhan Mantri Fasal Bima Yojana (PMFBY) delivers compensation to farmers in time. Finally, it should free up land lease markets. Let us elaborate on these points a bit. Ensuring profitability of cultivation: Issue: The policy of minimum support prices (MSPs) has not improved profitability of cultivation. In fact, farmers’ returns have gone down in the case of most crops. The situation is worse for producers of basic vegetables like potatoes, onions and tomatoes. Prices of these crops during harvest time plunged to about Rs 2 per kg in the last season while the consumers were still paying Rs 15 to Rs 20 per kg. Attempts to reform the Agricultural Produce Marketing Committee (APMC) markets on the lines of the model act of 2003, and now through the Agricultural Produce and Livestock Marketing Act, 2017, have not achieved much success. AMUL model: India has shown in the case of milk, through Operation Flood — a la the AMUL model — that farmers can get 70-80 per cent of the price paid by consumers. We can have “Operation Veggies” on similar lines. A beginning can be made with at least onions, potatoes and tomatoes. That would require buying directly from farmers’ groups (FPOs), setting up logistics from grading, storage to movement, and linking them to organised retail (including e-retail), large processors and exporters. The government must commit enough resources as it did for Operation Flood and also change certain laws, including the Essential Commodities Act (ECA). Issue: The e-NAM scheme, which is supposed to create an all India market, in order to ensure better prices to farmers, has not succeeded in its endeavour so far. Software is still being installed in mandis to enable them to switch auctions from the shouting platform to the electronic ones. Inter-mandi and inter-state transactions are very rare. Solution: An easier way to improve farmers’ profitability is to open up exports of all agri-products, without any restrictions, and allowing private trade to build global value chains, keeping the ECA in abeyance. This would require a change from the current pro-consumer approach to one that is focussed on farmers. Issue of investments: Especially in water. The Pradhan Mantri Krishi Sinchayee Yojana is mandated to complete 99 irrigation projects by 2019, which will bring 76 lakh ha additional area under irrigation. NABARD, with Rs 40,000 crore as Long-Term Irrigation Fund, is to help states in completing these projects. It would be a commendable achievement for the government if it can complete these projects as planned. But open canal systems with flood irrigation don’t give high water-use efficiency. Solution: According higher priority to micro-irrigation (drip and sprinklers) to achieve the objective of “more crop per drop”. Israel and the US could be good examples to follow: Israel has the highest proportion (99 per cent) of its irrigated area under micro-irrigation while the US has largest absolute area (15 m ha) under micro-irrigation. Pic credits: A sketchy roadmap http://images.indianexpress.com/2017/09/chart-roadmap-759.jpg Providing DBT of food and fertiliser subsidies. A report estimates that Rs 30,000 to Rs 50,000 crores can be saved each year, which can be invested in water resources and upgrading marketing infrastructure. Ensuring that the Pradhan Mantri Fasal Bima Yojana (PMFBY) delivers. Currently, several states don’t pay premium in time, don’t conduct crop cutting experiments, and as a result, farmers suffer long delays in getting any compensation. These lacunae can be fixed through modern technology and better governance, provided there is a champion in the government to deliver. Free up land lease markets for long periods. China allows land lease for 30 years so that corporate bodies can work with farmers, bringing in their best expertise, inputs and investments. Connecting the dots: For reforming agricultural sector, India needs an action plan based on priority. Ensuring profitability of cultivation should be at utmost priority. Discuss. 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. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Structural reforms and not fiscal stimulus is what Indian economy requires Background: The government of India is working on a plan to revive the economy after growth slipped to a modest rate of 5.7% in the first quarter of the current fiscal compared with 7.9% in the same quarter last year. Media reports suggest that it is mulling a fiscal stimulus to boost growth, which could increase the fiscal deficit. The idea is that in the absence of sufficient investment demand from the private sector, higher government expenditure will help boost gross domestic product (GDP) growth. Providing fiscal stimulus- Not a good option: There are sound economic reasons why the government should adhere to its fiscal commitments. The deceleration in growth is partly being explained by the lingering impact of demonetisation and destocking before the implementation of the goods and services tax (GST). The impact will peter out and output affected by these events doesn’t need fiscal support. Opening the fiscal tap at the moment would mean that crucial reforms in areas such as improving the ease of doing business might get postponed. There is no guarantee that expanding the deficit will take India to a higher sustainable growth path. In fact, the economy already has a fair amount of fiscal support with the combined fiscal deficit running in excess of 6% of GDP. Expanding the deficit by another half a percentage point, for instance, is unlikely to change things materially on the ground. Furthermore, the government has exhausted over 90% of the estimated fiscal deficit for the year in the first four months, but it has not resulted in the desired level of growth. All this shows that increasing government spending may not be sufficient to boost growth in a sustainable manner. Expanding the deficit can complicate policy choices for the Reserve Bank of India (RBI). It can affect RBI’s target of keeping inflation around 4% on a durable basis. If the government decides to expand the deficit in the current year, a reversal will be unlikely in the next fiscal, as it will end close to the general election. This means that the deficit will remain elevated for a considerable period and would affect investor sentiment. It is in India’s own interest to keep its house in order and minimize risk from external shocks. Interventions that go beyond stimulus are required: Economic growth has slowed considerably and the economy needs policy intervention that goes beyond running a bigger deficit. What the economy needs is deeper and broader structural reforms that will help attain sustainable higher growth in the medium to long run. Proper implementation of big-ticket reforms like GST and the bankruptcy code. Factor markets such as for land and labour, and public sector banks need immediate attention. On the fiscal front, government should address all the issues in the functioning of GST. If revenue gets affected because of operational issues, fiscal management will become extremely difficult. Higher tax revenue from GST will help push public expenditure. The government should also aggressively pursue disinvestment and privatization, which will help augment resources. Conclusion: Irrespective of the slowdown, the Indian economy needs higher public investment, but it need not come at the cost of fiscal discipline. Connecting the dots: The India economy is not performing well as suggested by GDP growth data. In this light the government is planning to provide fiscal stimulus. Discuss the rationale behind. Also, critically analyze how the need of the hour is structural reforms and not fiscal stimulus. 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Sep 25, 2017 Daily Prelims CA Quiz

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 49]

UPSC Quiz- 2017 : IASbaba's Daily Current Affairs Quiz [Day 49] Archives Q.1) OSIRIS-Rex is a NASA study and sample return mission of which of the following asteroid? Florence Bennu Ceres Phobos & Deimos Q.2) Consider the following statements about Meitei script Meitei language belongs to the Tibeto-Burmese branch of the Sino-Tibetan family of languages It is currently classified as a vulnerable language by UNESCO It is also called as Manipuri script Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.3) Consider the following statements about Kattunayakka’ They are classified as Particularly Vulnerable Tribal Groups (PVTG) They are inhabitants of the Western Ghats They are also called as Cholanaickan and Pathinaickans Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.4) ‘Neela Kurinji’ is found in Tropical montane forests of Western Ghats Andaman Islands Tropical rain forests of northeast Maikal Hills Q.5) Which one of the following books of ancient India has the love story of the son of the founder of Sunga dynasty? Swapnavasavadatta Malavikagnimitra Meghadoota Ratnavati To Download the Solution - Click Here All The Best  IASbaba