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| Exclusive for Subscribers Daily: Production Linked Incentive (PLI) and Privilege motion matter for the UPSC Exam? Why are subjects like Uniform Civil Code (UCC) and the Cloudburst important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for August 3, 2024 |
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Critical Topics and Their Significance for the UPSC CSE Examination on August 03, 2024
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PLI SCHEME FOR ELECTRIC VEHICLE MANUFACTURERS
For Preliminary Examination: Production-Linked Incentive (PLI), Electric vehicle policy
For Mains Examination: Role of the government in promoting domestic manufacturing, Electric Vehicle Policy
Context:
The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India (PLI-Auto) on 15.09.2021 for enhancing India’s manufacturing capabilities for advanced automotive products including Electric Vehicles and their components, with a budgetary outlay of Rs. 25,938 crores
Read about:
What is Production Linked Incentive (PLI)?
Sectors with Production Linked Incentive
Key Takeaways:
- On September 15, 2021, the government sanctioned the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry in India (PLI-Auto) to boost the country’s manufacturing capabilities for advanced automotive products, including electric vehicles and their components, with a financial allocation of Rs. 25,938 crores.
- According to data from approved applicants, investments up to March 31, 2024, amount to Rs. 17,896 crores, while incremental sales have reached Rs. 3,370 crores.
- The duration of the PLI-Auto Scheme was extended by one year through Gazette Notifications no. SO 5486(E) and SO 5487(E) on December 29, 2023
- By providing incentives tied to production, the scheme encourages companies to increase their manufacturing activities within India
- The scheme aims to attract both domestic and foreign investments in key sectors by offering financial benefits.
- By enhancing production capacity, the scheme aims to increase the export of goods, improving the trade balance
- Increased production and investment are expected to generate more jobs.
- The scheme targets high-tech and advanced manufacturing sectors, encouraging the adoption and development of cutting-edge technologies.
1.Consider, the following statements : (UPSC 2023)
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's ‘Production-linked Incentive’ scheme.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
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Answer (d)
India's Exports of Goods: According to WTO data released in April 2019, India's share in global merchandise exports was 1.7% and in global imports was 2.6% for the year 2018. In the services sector for the same year, India's share in global exports was 3.5% and in imports was 3.2%. Thus, statement I is incorrect.
Production Linked Incentive (PLI) Scheme: The PLI scheme, launched by the Government of India, aims to bolster domestic manufacturing across various sectors and establish India as a global manufacturing hub. This initiative seeks to attract investments, create jobs, and boost exports by offering financial incentives to eligible companies. The key objectives of the scheme include attracting investment, enhancing production capacities, generating employment, and promoting exports. Numerous local companies and some foreign companies operating in India have taken advantage of this scheme. Hence, statement II is correct
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The Privileges Committee of Parliament is a committee tasked with examining cases involving the breach of privileges of Parliament or its members. Here’s a detailed explanation:
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Composition:
- The Privileges Committee is constituted in both Houses of Parliament: the Lok Sabha (House of the People) and the Rajya Sabha (Council of States).
- In the Lok Sabha, the committee consists of 15 members.
- In the Rajya Sabha, the committee comprises 10 members.
- Members of the committee are nominated by the Speaker of the Lok Sabha or the Chairman of the Rajya Sabha, respectively.
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Functions:
- Investigating Complaints: The primary role of the Privileges Committee is to investigate complaints regarding the breach of privileges and immunities of the members of Parliament.
- Reporting: After a thorough investigation, the committee submits its findings and recommendations to the House.
- Recommending Action: The committee may recommend what actions should be taken against those who have committed a breach of privilege.
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Types of Privileges:
- Freedom of Speech: Members of Parliament enjoy freedom of speech within the Parliament.
- Freedom from Arrest: Members cannot be arrested in civil cases during the session of Parliament and 40 days before and after the session.
- Right to Exclude Strangers: The House has the right to exclude strangers from its proceedings and hold secret sessions.
- Right to Publish Debates: Parliament has the right to publish its debates and proceedings.
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Process:
- When a member of Parliament feels that a privilege has been breached, they can raise the issue in the House, often as a Privilege Motion.
- The Speaker or Chairman decides on the admissibility of the motion.
- If admitted, the matter may be referred to the Privileges Committee for investigation.
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Outcome:
- The committee investigates the matter, hears evidence, and reports back to the House with its findings and recommendations.
- The House then debates the report and decides on the course of action, which could include reprimand, suspension, or other penalties depending on the severity of the breach.
The Privileges Committee plays a crucial role in maintaining the integrity and authority of Parliament
1.Which of the following statements regarding Privilege Motion in the Indian Parliament is/are correct?
- A Privilege Motion can be moved in either House of Parliament.
- The Speaker of the Lok Sabha or the Chairman of the Rajya Sabha decides on the admissibility of the Privilege Motion.
- A Privilege Motion is used to address a breach of parliamentary privileges by a Member of Parliament.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
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Answer (d)
Given this analysis, we can conclude that all three statements are essentially correct, although the third one could be more comprehensive. Therefore, the correct answer is: (d) 1, 2, and 3 |
The Uniform Civil Code (UCC) refers to a set of laws that applies uniformly to all citizens of a country, irrespective of their religion, for personal matters such as marriage, divorce, inheritance, and adoption. In India, the UCC is envisioned as a single set of secular laws that would replace the current system, where different religions follow their own personal laws.
The UCC aims to:
- Ensure Equality: Provide equal rights and obligations to all citizens, regardless of their religion.
- Promote Secularism: Ensure that laws related to personal matters are based on secular principles rather than religious doctrines.
- Simplify Laws: Streamline and harmonize the diverse personal laws currently in existence, making legal processes more transparent and efficient.
Currently, India follows a system where different religious communities (Hindus, Muslims, Christians, etc.) have their own personal laws. The idea of a Uniform Civil Code has been a subject of debate, with discussions centering around issues of religious freedom, minority rights, and gender justice
Q1. Consider the following provisions under the Directive Principles of State Policy as enshrined in the Constitution of India: (2012)
- Securing for citizens of India a uniform civil code
- Organising village Panchayats
- Promoting cottage industries in rural areas
- Securing for all the workers reasonable leisure and cultural opportunities
Which of the above are the Gandhian Principles that are reflected in the Directive Principles of State Policy?
(a) 1, 2 and 4 only
(b) 2 and 3 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
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Answer (b)
The Gandhian Principles reflected in the Directive Principles of State Policy are:
These principles are inspired by Mahatma Gandhi’s vision of decentralized governance and rural development. So, the correct answer is: (b) 2 and 3 only |
Q2. A legislation that confers on the executive or administrative authority an unguided and uncontrolled discretionary power in the matter of the application of law violates which one of the following Articles of the Constitution of India?
(a) Article 14
(b) Article 28
(c) Article 32
(d) Article 44
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Answer (a)
A legislation that confers on the executive or administrative authority an unguided and uncontrolled discretionary power in the matter of the application of law violates:
(a) Article 14
Article 14 of the Constitution of India guarantees the right to equality before the law and equal protection of the laws. It ensures that laws and their application must be fair, reasonable, and not arbitrary. An unguided and uncontrolled discretionary power by the executive or administrative authority can lead to arbitrary actions, which would be in violation of Article 14.
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What is a Cloudburst?
A cloudburst is an intense and sudden rainfall event that occurs over a small geographic area, characterized by heavy rainfall in a short period. Meteorologists define it as rainfall with a rate equal to or exceeding 100 mm (4.94 inches) per hour. Cloudbursts are typically associated with thunderstorms. During these events, strong upward air currents in a storm hold a significant amount of water. If these currents suddenly stop, the water descends rapidly over a localized area, causing significant destruction. This phenomenon is caused by the rapid condensation of clouds. Cloudbursts are common in desert and mountainous regions and the interiors of continental landmasses. In these events, more than 2 cm of rain can fall within minutes. The term 'burst' likely originates from the older belief that clouds were solid masses that burst open to release water. One notable incident in India occurred in 2002 in Uttaranchal, where villages such as Marwari, Kotsisham, Matgoan, and Agonda were hit, resulting in the deaths of 28 people. Himachal Pradesh often experiences cloudbursts during the monsoon season.
How Does it Happen?
Research indicates that cloudbursts result from intense small-scale vortices that create strong convection currents. These currents rapidly lift moisture-laden air, forming cumulonimbus clouds that release their water content with great intensity.
Why are Hilly Areas More Prone to Cloudbursts?
The topography of hilly regions, with their steep slopes, facilitates the formation of these clouds and increases the damage caused by the descending water. As water flows down the steep slopes, it carries debris, boulders, and uprooted trees, causing significant damage to structures in its path.
Can Cloudbursts be Predicted?
Currently, there is no reliable method to predict cloudbursts due to their small scale. Detecting them would require an extensive and expensive network of radars. However, areas likely to receive heavy rainfall can be identified on a short-range scale, allowing for some preventative measures.
Cloudbursts in India
In India, cloudbursts often occur when a monsoon cloud, laden with moisture from the Bay of Bengal or the Arabian Sea, drifts northwards over the plains and onto the Himalayas. This can result in rainfall rates as high as 75 mm per hour. Some notable incidents include:
- September 28, 1908: A cloudburst caused the Musi River to swell up to 38-45 m, killing about 15,000 people and destroying around 80,000 houses.
- July 1970: A cloudburst in the upper catchment area caused a 15-meter rise in the Alaknanda river, affecting the entire river basin from Hanumanchatti to Haridwar and sweeping away an entire village.
- August 15, 1997: A cloudburst in Chirgaon, Shimla district, Himachal Pradesh, killed 115 people.
- August 17, 1998: A massive landslide following a cloudburst in Malpa village, Kumaon division, Uttarakhand, killed 250 people, including 60 Kailash Mansarovar pilgrims and Odissi dancer Protima Bedi.
- July 16, 2003: A cloudburst in Shilagarh, Gursa area of Kullu, Himachal Pradesh, killed about 40 people.
- July 6, 2004: A cloudburst in Chamoli district, Uttarakhand, killed at least 17 people and injured 28, with heavy landslides leaving nearly 5,000 pilgrims stranded near the Badrinath shrine area.
- July 26, 2005: A cloudburst caused approximately 950 mm (37 in) of rainfall in Mumbai over eight to ten hours, paralyzing the city.
- August 16, 2007: A cloudburst in Bhavi village, Ghanvi, Himachal Pradesh, killed 52 people.
- August 7, 2009: A cloudburst in Nachni area near Munsiyari, Pithoragarh district, Uttarakhand, killed 38 people.
- August 6, 2010: A series of cloudbursts in Leh, Jammu and Kashmir, killed 179 people and injured over 400.
- September 15 (2010): A cloudburst in Almora, Uttarakhand, drowned two villages, leaving few survivors and causing widespread devastation. Authorities declared Almora a cloudburst-affected town.
- June 9, 2011: A cloudburst near Jammu killed 4 people and injured several others, with restaurants and shops washed away on the Doda-Batote highway
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Answer (A)
Based on this analysis, statements 1, 2, and 3 are correct |
- A committee chaired by the Bihar finance minister has been established and tasked with submitting its recommendations within three months.
- The committee’s suggestions on rate rationalization are crucial for simplifying the tax system and shifting the GST rate incidence from the current 12.25 percent closer to the revenue-neutral rate of 14.8 percent, which was in place before the GST's introduction.
- Another key area of focus is expanding GST coverage. Some economists advocate for including petroleum products under GST; however, given the states' need to retain some fiscal autonomy to manage emergency situations, now may not be the right time.
- An often-overlooked but potentially impactful area is bringing land and real estate (LARE) under GST.
- This could increase transparency in land market transactions, boost income tax revenues, and attract more foreign investment in the housing market, thereby generating more employment.
- Implementing this measure would require consensus among the states and was a topic of extensive debate before GST's implementation.
- The Centre must reassure states by clarifying legal positions: imposing GST on LARE does not prevent states from levying stamp duty or local bodies from imposing property tax.
- There are no legal barriers to taxing LARE under GST while allowing states to continue charging stamp duty, as the taxable events differ. This principle was upheld by the Supreme Court, supporting the aspect theory of taxation
- To make the GST levy effective, it should encompass the entire value chain from land development to lodging—from land preparation and construction to the initial sale of completed properties.
- This approach is legally feasible. The sale of land can be classified as the sale of land rights, which can be taxed as a service. This not only establishes a self-regulating input credit chain but also helps curb black money generation and promotes land development rather than leaving non-agricultural land unused.
- The GST levy would also eliminate the current distinction between construction services (which are taxed) and ready-made properties (which are exempt). To simplify the process for property buyers, GST payments could be managed by service providers, such as developers and builders, under the reverse charge mechanism.
- There would be minimal direct gains in GST revenues because the output revenue would be offset by input duty credits on various construction materials like iron, steel, cement, and fixtures.
- However, there would be significant gains in income tax revenues due to better transaction reporting at their actual value. Affordable housing, defined as units with a carpet area of less than 250 sq ft, could be exempt from GST. Additionally, government housing programs under the Pradhan Mantri Awas Yojana could also be excluded from GST
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Answer (D)
The Goods and Services Tax (GST) introduced in India has the following characteristics:
A. It is a destination tax
C. It benefits consuming states more E. It is an umbrella tax to improve ease of doing business Therefore, the most appropriate answer is:
D. A, C and E only
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What is Manufacturing PMI?
The Purchasing Managers’ Index (PMI) is an economic indicator derived from monthly surveys of various companies. This index reflects trends in both the manufacturing and services sectors, helping to determine whether market conditions, as seen by purchasing managers, are expanding, contracting, or remaining stable. It provides valuable information regarding current and future business conditions and is a closely monitored indicator of business activity, useful for predicting a country’s economic health. There are two main types of PMI: Manufacturing PMI and Services PMI, with a combined index also available.
How is the Manufacturing PMI Derived?
- The PMI is calculated by sending factual questions to a large number of companies within the relevant sector. For manufacturing PMI, the survey is distributed to manufacturing companies. The questions are based on five key variables: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%), and stock of items purchased (10%). The survey is conducted monthly and does not seek opinions, intentions, or expectations.
- A PMI score above 50 indicates an expansion in business activity, while a score below 50 signifies contraction. The rate of expansion or contraction is determined by the deviation from the midpoint (50) and the comparison with the previous month's data.
- The PMI was first introduced by the US-based Institute for Supply Management (ISM) in 1948. The Singapore Institute of Purchasing and Materials Management (SIPMM) produces the index for Singapore, and IHS Markit produces the index for 30 other countries, including India.
- The IHS Markit India Manufacturing Purchasing Managers’ Index measures the performance of India’s manufacturing sector based on a survey of 500 manufacturing companies.
- The PMI is a reliable indicator of economic activity in any country and is typically released before other indices such as GDP and industrial output. It provides insights into the direction of the economy, aiding economists in predicting manufacturing activity.
- Manufacturers and suppliers use the index to adjust their production needs based on anticipated new orders, and investors rely on it to gauge the economic health of a country for making investment decisions in the stock market
1.What does S & P 500 relate to? (UPSC CSE 2008)
(a) Supercomputer
(b) A new technique in e-business
(c) A new technique in bridge building
(d) An index of stocks of large companies
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Answer (d)
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| Subject | Topic | Description |
| Polity | Indian Constitution | Constitutional bodies |
| History | Ancient History | Indus Valley Civilisation (IVC) |
| Economy | NCERT Class 9 | People as a Resource |
| Geography | NCERT Class 9 | Physical Features of India |
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