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DAILY CURRENT AFFAIRS, 02 DECEMBER 2023

ELECTION COMMISSION OF INDIA

 

1. Context

The Election Commission of India announced that the counting of votes for the Mizoram Assembly election would take place on December 4 2023, instead of December 3 2023

2. The Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service, and Term of Office) Bill, 2023

The Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service, and Term of Office) Bill, 2023, was introduced in Rajya Sabha on August 10, 2023.  It repeals the Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991.

  • Election Commission: As per Article 324 of the Constitution, the Election Commission consists of the Chief Election Commissioner (CEC) and such number of other Election Commissioners (ECs), as the President may decide.  The CEC and other ECs are appointed by the President.  The Bill specifies the same composition of the Election Commission.  It adds that the CEC and other ECs will be appointed by the President on the recommendation of a Selection Committee.
  • Selection Committee: The Selection Committee will consist of (i) the Prime Minister as Chairperson, (ii) the Leader of the Opposition in Lok Sabha as member, and (iii) a Union Cabinet Minister nominated by the Prime Minister as member.  If the Leader of the Opposition in Lok Sabha has not been recognized, the leader of the single largest opposition party in Lok Sabha will assume the role.
  • Search Committee: A Search Committee will prepare a panel of five persons for the consideration of the Selection Committee.  The Search Committee will be headed by the Cabinet Secretary.  It will have two other members, not below the rank of Secretary to the central government, having knowledge and experience in matters related to elections.  The Selection Committee may also consider candidates who have not been included in the panel prepared by the Search Committee.
  • Qualification of CEC and ECs: Persons who are holding or have held posts equivalent to the rank of Secretary to the central government will be eligible to be appointed as CEC and ECs.   Such persons must have expertise in managing and conducting elections.
  • Salary and allowances: The 1991 Act provides that the salary of the ECs will be equal to that of a Supreme Court judge.  The Bill provides that the salary, allowance, and service conditions of the CEC and other ECs will be the same as that of the Cabinet Secretary.
  • Term of office: The 1991 Act mandates that the CEC and other ECs will hold office for a term of six years or until they reach the age of 65 years, whichever is earlier.  If an EC is appointed as the CEC, his total term cannot exceed six years.  The Bill retains the same tenure.  Further, under the Bill, the CEC and other ECs will not be eligible for re-appointment.
  • Conduct of business: All business of the Election Commission is to be conducted unanimously.  In case of a difference of opinion between the CEC and the other ECs on any matter, it shall be decided through the majority.
  • Removal and resignation: Under Article 324 of the Constitution, the CEC can only be removed from his office in a manner similar to that of a Supreme Court judge.  This is done through an order of the President, based on a motion passed by both Houses of Parliament in the same session. The motion for removal must be adopted with (i) majority support of total membership of each House, and (ii) at least two-thirds support from members present and voting.  An EC can only be removed from office on the recommendation of the CEC.  The Bill retains this removal procedure.
  • Further, the 1991 Act provides that the CEC and other ECs may submit their resignation to the President.  The Bill has the same provision. 

3. Election Commission of India- Powers and Functions

  • The Election Commission of India (ECI) is an autonomous constitutional authority responsible for overseeing and conducting elections in India.
  • Established on January 25, 1950, under Article 324 of the Indian Constitution, the Election Commission plays a vital role in upholding the democratic principles of the country by ensuring free and fair elections.
  • The Election Commission of India (ECI) is vested with significant powers and functions to ensure the conduct of free, fair, and transparent elections in the country.
  • These powers and functions are outlined in the Indian Constitution and various laws related to elections.

Some of the key powers and functions of the Election Commission of India include:

  • Conducting Elections: The ECI is responsible for organizing and conducting elections to the Lok Sabha (House of the People), State Legislative Assemblies, and offices of the President and Vice-President of India.
  • Voter Registration: The ECI oversees the process of voter registration, which includes the preparation and revision of electoral rolls, and the issuance of Voter ID cards to eligible citizens.
  • Delimitation of Constituencies: The ECI determines the boundaries and delimits constituencies for parliamentary and assembly elections. This process aims to ensure equitable representation and prevent gerrymandering.
  • Nomination of Candidates: The ECI supervises the filing of nominations by candidates, verifies their eligibility, and ensures compliance with nomination procedures.
  • Model Code of Conduct: The ECI enforces the Model Code of Conduct, which provides guidelines for political parties and candidates to maintain ethical and fair campaigning practices during elections.
  • Election Monitoring and Supervision: The ECI monitors all stages of the electoral process, including the conduct of polls, to ensure that elections are free from malpractices and irregularities.
  • Election Schedule: The ECI announces the schedule for elections, including polling dates and result declaration dates, and ensures that elections are held within a specified time frame.
  • Campaign Finance Regulation: The ECI monitors and regulates campaign financing to curb the use of illegal funds and maintain transparency in election spending.
  • Media Management: The ECI regulates media coverage during elections to ensure equal opportunities for all candidates and parties and prevent any undue influence.
  • Disqualification of Candidates: The ECI has the authority to disqualify candidates who violate election laws or engage in corrupt practices.
  • Counting of Votes and Results: The ECI oversees the counting of votes and the declaration of election results, ensuring accuracy and transparency in the process.
  • Dispute Resolution: The ECI adjudicates election-related disputes, addresses complaints of violations, and takes necessary actions to ensure a fair electoral process.
  • Voter Education: The ECI conducts voter education campaigns to raise awareness among citizens about the electoral process, their voting rights, and the importance of participating in elections.
  • Electronic Voting Machines (EVMs) and VVPATs: The ECI is responsible for the use and maintenance of Electronic Voting Machines (EVMs) and Voter Verified Paper Audit Trails (VVPATs), which enhance the transparency and integrity of the voting process.
  • Code of Conduct for Political Parties: The ECI monitors the conduct of political parties and can take action against parties that violate election laws or engage in unethical practices.

4. Chief Election Commissioner and the two other Election Commissioners have equal powers-True or False?

  • The Chief Election Commissioner (CEC) of India holds a higher position and is the head of the Election Commission of India (ECI).
  • While the three members of the Election Commission (including the CEC and the two Election Commissioners) work collectively to make decisions, the Chief Election Commissioner generally holds more administrative and decision-making authority.
  • The Chief Election Commissioner is responsible for presiding over the meetings of the Election Commission, casting the deciding vote in case of a tie on any matter, and representing the Election Commission in its relations with the President of India and other authorities.
  • The CEC also has a prominent role in shaping the policies and decisions of the Election Commission.
  • However, it's important to note that the decisions and functioning of the Election Commission are usually made through a collective process, and the Chief Election Commissioner is expected to work in consultation with the other Election Commissioners.
  • The independence, fairness, and integrity of the Election Commission's decisions are paramount, regardless of the position held by each member.
For Prelims: Election Commission of India, Chief Election Commissioner, Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991, State Election Commission, Article 324, Electronic Voting Machines (EVMs) and Voter Verified Paper Audit Trails (VVPATs).
For Mains: 1. Discuss the powers and functions of the Election Commission of India. How does the Election Commission ensure the conduct of free and fair elections in the Country? (250 words).
 

Previous year Question

1. Consider the following statements: (UPSC 2017)
1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only
Answer: D
 
2. Consider the following statements : (UPSC 2021)
1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. 1 and 3
D. 2 and 3
Answer: B
Source: PRS Legislative Research

GROSS DOMESTIC PRODUCT (GDP)

 
 
1. Context
With the latest print, GDP growth during the first half of the year — April-September 2023 — added up to 7.7 per cent compared with 9.5 per cent in the year-ago period.
 
2. Gross Domestic Product (GDP)
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is often used as a measure of a country's economic health
GDP provides insight into the overall economic health of a nation and is often used for comparing the economic output of different countries.

There are three primary ways to calculate GDP:

  1. Production Approach (GDP by Production): This approach calculates GDP by adding up the value-added at each stage of production. It involves summing up the value of all final goods and services produced in an economy.

  2. Income Approach (GDP by Income): This approach calculates GDP by summing up all the incomes earned in an economy, including wages, rents, interests, and profits. The idea is that all the income generated in an economy must ultimately be spent on purchasing goods and services.

  3. Expenditure Approach (GDP by Expenditure): This approach calculates GDP by summing up all the expenditures made on final goods and services. It includes consumption by households, investments by businesses, government spending, and net exports (exports minus imports).

3. Measuring GDP

GDP can be measured in three different ways:

  1. Nominal GDP: This is the raw GDP figure without adjusting for inflation. It reflects the total value of goods and services produced at current prices.

  2. Real GDP: Real GDP adjusts the nominal GDP for inflation, allowing for a more accurate comparison of economic performance over time. It represents the value of goods and services produced using constant prices from a specific base year.

  3. GDP per capita: This is the GDP divided by the population of a country. It provides a per-person measure of economic output and can be useful for comparing the relative economic well-being of different countries.

The GDP growth rate is the percentage change in the GDP from one year to the next. A positive GDP growth rate indicates that the economy is growing, while a negative GDP growth rate indicates that the economy is shrinking

The GDP is a useful measure of economic health, but it has some limitations. For example, it does not take into account the distribution of income in an economy. It also does not take into account the quality of goods and services produced.

Despite its limitations, the GDP is a widely used measure of economic health. It is used by economists, policymakers, and businesses to track the performance of an economy and to make decisions about economic policy

4. Gross Value Added (GVA)

 

Gross Value Added (GVA) is a closely related concept to Gross Domestic Product (GDP) and is used to measure the economic value generated by various economic activities within a country. GVA represents the value of goods and services produced in an economy minus the value of inputs (such as raw materials and intermediate goods) used in production. It's a way to measure the contribution of each individual sector or industry to the overall economy.

GVA can be calculated using the production approach, similar to one of the methods used to calculate GDP. The formula for calculating GVA is as follows:

GVA = Output Value - Intermediate Consumption

Where:

  • Output Value: The total value of goods and services produced by an industry or sector.
  • Intermediate Consumption: The value of inputs used in the production process, including raw materials, energy, and other intermediate goods.
5. GDP vs GNP

Gross Domestic Product (GDP) and Gross National Product (GNP) are both important economic indicators used to measure the size and health of an economy, but they focus on slightly different aspects of economic activity and include different factors. Here are the key differences between GDP and GNP:

  1. Definition and Scope:

    • GDP: GDP measures the total value of all goods and services produced within a country's borders, regardless of whether the production is done by domestic or foreign entities. It only considers economic activities that take place within the country.
    • GNP: GNP measures the total value of all goods and services produced by a country's residents, whether they are located within the country's borders or abroad. It takes into account the production of residents, both domestically and internationally.
  2. Foreign Income and Payments:

    • GDP: GDP does not consider the income earned by residents of a country from their economic activities abroad, nor does it account for payments made to foreigners working within the country.
    • GNP: GNP includes the income earned by a country's residents from their investments and activities abroad, minus the income earned by foreign residents from their investments within the country.
  3. Net Factor Income from Abroad:

    • GDP: GDP does not account for net factor income from abroad, which is the difference between income earned by domestic residents abroad and income earned by foreign residents domestically.
    • GNP: GNP includes net factor income from abroad as part of its calculation.
  4. Foreign Direct Investment:

    • GDP: GDP does not directly consider foreign direct investment (FDI) flowing into or out of a country.
    • GNP: GNP considers the impact of FDI on the income of a country's residents, both from investments made within the country and from investments made by residents abroad.
  5. Measurement Approach:

    • GDP: GDP can be calculated using three different approaches: production, income, and expenditure approaches.
    • GNP: GNP is primarily calculated using the income approach, as it focuses on the income earned by residents from their economic activities.
 
 
 
 
For Prelims: GDP, GVA, FDI, GNP
For Mains: 1.Discuss the recent trends and challenges in India's GDP growth
2.Examine the role of the service sector in India's GDP growth
3.Compare and contrast the growth trajectories of India's GDP and GNP
 
 
Previous Year Questions
1.With reference to Indian economy, consider the following statements: (UPSC CSE, 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (b)
2.A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC CSE, 2015)
1. Slowing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (a)
Previous year UPSC Mains Question Covering similar theme:
Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC CSE GS3, 2020)
Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC CSE GS3, 2021)
 
Source: indianexpress

CYCLONES

 
 
1. Context
The India Meteorological Department (IMD) has forecast a cyclonic storm, Cyclone Michaung, over the southwest Bay of Bengal on Sunday (December 3). It is likely to make landfall in the coastal districts of Tamil Nadu and Andhra Pradesh the next day
 
2. What is a Cyclone
  • A cyclone is a low-pressure system that forms over warm waters. Essentially, it is a system of high-speed winds rotating around a low-pressure area, with the winds blowing counterclockwise in the Northern Hemisphere and clockwise in the Southern Hemisphere.
  • According to the World Meteorological Organization, “Tropical cyclones are one of the biggest threats to life and property even in the formative stages of their development.
  • Cyclonic winds move across nearly all regions of the Earth except the equatorial belt and are generally associated with rain or snow
  • They include several different hazards that can individually cause significant impacts on life and property, such as storm surge, flooding, extreme winds, tornadoes and lighting.
  • Combined, these hazards interact with one another and substantially increase the potential for loss of life and material damage.”
  • Cyclones occur chiefly in the middle and high latitude belts of both hemispheres. In the Southern Hemisphere, where most of the terrestrial surface is covered by the oceans, cyclones are distributed in a relatively uniform manner through various longitudes
  • Characteristically, they form in latitudes 30° to 40° S and move in a generally southeasterly direction, reaching maturity in latitudes around 60°. 
  • Cyclones that form closer to the Equator (i.e., at latitudes 10° to 25° north and south over the oceans) differ somewhat in character from the extratropical variety. Such wind systems, known as tropical cyclones, are much smaller in diameter. 
  • Whereas extratropical cyclones range from nearly 1,000 to 4,000 km (620 to 2,500 miles) across, tropical cyclones typically measure only about 100 to over 1,000 km in diameter.

 
 
PC: Brittanica
 
3. Types of cyclones

3.1.Tropical Cyclones

Cyclones developed in the tropics region (the majority confined to 100– 30N and S of the equator) are called tropical cyclones.

  • tropical cyclones have a thermal origin, and they develop over tropical seas during certain seasons. Pre-existing low pressure, large sea surface with a temperature higher than 27° C, and the presence of the Coriolis force are a must for tropical cyclone formation.

  • At these locations, the local convectional currents acquire a whirling motion because of the Coriolis force generated by the earth’s rotation. After developing, these cyclones advance till they find a weak spot in the trade wind belt.

  • Tropical cyclones always originate in large water bodies.
3.2.Temperate Cyclone

Temperate cyclones (Mid-Latitude cyclones), also known as Extratropical cyclones, are active over the mid-latitudinal regions between 35° latitude and 65° latitude in both hemispheres.

  • They have a dynamic origin and cyclone formation is due to frontogenesis (interaction of cold and warm fronts). When the warm-humid air masses from the tropics meet the dry-cold air masses from the poles and thus a polar front is formed as a surface of discontinuity. The cold air pushes the warm air upwards from underneath. Thus, a void is created because of the lessening of pressure. The surrounding air rushed in to occupy this void and coupled with the earth’s rotation, a temperate cyclone is formed. 
  • Temperate cyclones can originate on both landmass or water.

4. How are cyclones named?

Cyclones that form in every ocean basin across the world are named by the regional specialised meteorological centres (RSMCs) and Tropical Cyclone Warning Centres (TCWCs). There are six RSMCs in the world, including the India Meteorological Department (IMD), and five TCWCs.

As an RSMC, the IMD names the cyclones developing over the north Indian Ocean, including the Bay of Bengal and the Arabian Sea, after following a standard procedure. The IMD is also mandated to issue advisories to 12 other countries in the region on the development of cyclones and storms.

 5. Way forward

Tropical cyclones have different names depending on their location and strength. For instance, they are known as hurricanes in the Caribbean Sea, the Gulf of Mexico, the North Atlantic Ocean and the eastern and central North Pacific Ocean. In the western North Pacific, they are called typhoons.

 

For Prelims: Cycles, types of cyclones, reasons for cyclones

For Mains: General Studies I: Origin and weather conditions of temperate and tropical cyclones

 
Previous Year Questions
 
1.Consider the following statements: (UPSC CSE 2020)
1. Jet streams occur in the Northern Hemisphere only.
2. Only some cyclones develop an eye.
3. The temperature inside the eye of a cyclone is nearly 10°C lesser than that of the surroundings.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 and 3 Only
C. 2 Only
D. 1 and 3 Only
Answer (C)
Source: indianexpress

KHALISTAN MOVEMENT

1. Context 

The United States Department of Justice (DoJ) has charged an Indian national for his involvement in a plot to murder a US-based Khalistani leader
 

2. Khalistan movement

  • The Khalistan movement is a fight for a separate, sovereign Sikh state in present-day Punjab (both India and Pakistan).
  • Over the years, it has survived in various forms, in various places and amongst different populations.
  • The movement was crushed in India following Operation Blue star (1984) and Operation Black Thunder (1986 and 1988), but it continues to evoke sympathy and support among sections of the Sikh population, especially in the Sikh diaspora in countries such as Canada, the UK and Australia.

3. Reasons for the origin of the movement

  • The origins of the movement have been traced back to India's independence and subsequent Partition along religious lines.
The Punjab province, which was divided between India and Pakistan, saw some of the worst communal violence and generated millions of refugees: Sikha and Hindus stranded in the West (in Pakistan) rushed to the east, whereas Muslims in the east fled westward.
  • Lahore, the capital of Maharaja Ranjit Singh's great Sikh Empire, went to Pakistan as did holy Sikh sites including Nankana Sahib, the birthplace of Guru Nanak, the founder of Sikhism.
  • While most Sikhs found themselves in India, they were a small minority in the country, making up around 2 per cent of the population.
  • The political struggle for greater autonomy began around the time of Independence, with the Punjabi Suba Movement for the creation of a Punjabi-speaking state.
  • The States Reorganisation Commission, in its 1955 report rejected this demand, but in 1966 after years of protest, the state of Punjab was reorganised to reflect the Punjabi Suba demand.
  • The erstwhile Punjab state was trifurcated into the Hindi-speaking, Hindu-majority states of Himachal Pradesh and Haryana and the Punjabi-speaking, Sikh-majority Punjab.

4. The Anandpur Sahib Resolution

  • The Punjabi Suba Movement had galvanised the Akali Dal which became a major force in the new Sikh-majority Punjab and gave Congress hard fights in the Legislative Assembly elections of 1967 and 1969.
  • But in 1972, in the aftermath of Indira Gandhi's resounding victory in the 1971 Lok Sabha elections, the Akali Dal's performance in the state was underwhelming.
  • The party met at the sacred town of Anandpur Sahib the birthplace of the Khalsa, in 1973 and released a list of demands that would guide the political path of the Akali Dal.
  • Among other things, the Anandpur Sahib Resolution demanded autonomy for the state of Punjab, identified regions that would be part of a separate state and sought the right to frame its internal constitution.
  • The Akali Dal was trying to cash in on the growing demand for an autonomous state which had emerged alongside the Punjabi Suba movement and had gone global by 1971 when an advertisement appeared in the New York Times proclaiming the birth of Khalistan.
  • While the Akalis themselves repeatedly made it clear that they were not demanding secession from India, for the Indian state, the Anandpur Sahib Resolution was of grave concern.

5. Jarnail Singh Bhindranwale

  • Many in Punjab sought to go beyond just a demand for greater autonomy.
  • One such man was Jarnail Singh Bhindranwale, a charismatic preacher who soon positioned himself as "the authentic voice of the Sikhs, in contrast to the Akali Dal's lukewarm, vacillating leadership".
  • Some accounts claim that Bhindranwale was propped up by Sanjay Gandhi, Indira's son, to stand against the Akalis for Congress's political benefit.
  • However, by the 1980s the appeal of Bhindranwale had grown so much that he started to become a problem for the government.
  • He found a captive audience in the state's youth, especially those in the lower rungs of the social ladder and massed a massive following. He and his followers were also getting increasingly violent.
  • In the summer of 1982, Bhindranwale, with support from the Akali Dal's leadership, launched a civil disobedience movement called Dharam Yudh Morcha.
  • He took up residence inside the Golden Temple, directing demonstrations and clashes with the Police.
  • The Movement was geared towards the demands first articulated in the Anandpur Sahib Resolution, especially the socio-economic demands, which addressed concerns of the state's rural Sikh population.
  • However, amidst growing religious polarisation, sectarian violence and Bhindranwale's harsh rhetoric against Hindus, Indira Gandhi's government declared the movement tantamount to secession.

6. Operation Blue Star

  • By 1984, the situation in Punjab had become increasingly untenable for the government.
  • Bhindranwale had given a call to arms and instances of violence against Hindus, as well as government officers, had become common.
  • In 1983, a senior police officer was shot dead after praying at the Golden Temple and his body was left to decay in the sun, while the local police station did nothing perhaps both out of fear and sympathy for Bhindranwale's cause.
  • Indira Gandhi took the fateful decision to order the Indian Army to flush out militants from the Golden Temple and neutralise Bhindranwale.
  • Operation Blue Star began on June 1, 1984, but due to fierce resistance from Bhindranwale and his heavily armed supporters, the Army's operation became larger and more violent than had been originally intended, with the use of tanks and air support.
  • The image of Indian Army tanks shelling the holiest shrine of Sikhism was traumatic and the very large number of civilian casualties that occurred during the operation added to the trauma.
  • According to the government, 83 Indian Army soldiers were killed and 249 were injured in the operation.  A total of 493 militants and civilians were killed in the operation.
  • Other estimates peg the number of casualties much higher as much as 3, 000.
  • The operation coincided with the martyrdom day of Guru Arjan Dev, the fifth Guru of the Sikhs; hence the number of pilgrims in the Golden Temple was higher than usual.

7. The aftermath of Operation Blue Star

  • While the operation was ostensibly successful in its aims Bhindranwale was killed and the Golden Temple was freed of militants it gravely wounded the Sikh community around the world. It also galvanised the demand for Khalistan.
  • On October 31, 1984, Prime Minister Indira Gandhi was assassinated by two Sikh bodyguards.
  • This triggered the worst communal violence since Partition even according to conservative estimates, over 8, 000 Sikha were massacred in massive anti-Sikh street violence.
  • A year later, Sikh nationalists based in Canada blew up an Air India flight killing 329 people.
  • They claimed that the attack was to "avenge Bhindranwale's killing".
  • Punjab saw the worst violence, becoming the hub of a long-drawn-out insurgency that lasted till 1995.
  • While the movement was allegedly supported by Pakistan to cause internal unrest in its neighbouring country, it would slowly peter out by the 1990s as the violence took its toll, the bulk of the population turned against the militants and India headed towards economic liberalisation

8. The status of the Khalistan movement today

  • Punjab has long been peaceful, but the movement lives among some Sikh communities overseas.
  • The deep-rooted anger over Operation Blue Star and the desecration of the Golden Temple continues to resonate with some of the newer generations of Sikhs.
  • However, even though Bhindranwale is viewed as a martyr by many and the 1980s are remembered as dark times, this has not manifested into tangible political support for the Khalistna cause.

For Prelims & Mains

For Prelims: Khalistan Movement, Operation Bluestar, Golden Temple, Indira Gandhi Assassination, Bhindranwale, Operation Black Thunder, Sikhs, Guru Nanak, States Reorganisation Commission, The Punjabi Suba Movement, Guru Arjan Dev, 
For Mains:
1. What is Khalistan Movement and Explain the consequences which led to Operation Bluestar and its aftermath? (250 Words)
 
Source: The Indian Express

MANUFACTURING SECTOR

 
1. Context
 
The Economy sprung a surprise in July-September 2023-24, recording a 7.6 per cent growth in the second quarter, considerably higher than the consensus estimate. The surge was largely led by the manufacturing sector which jumped 13.9 per cent year-on-year in the second quarter, helped by a favourable base and improved volume growth, data released by the National Statistical Office (NSO).

2. About the Manufacturing sector

The manufacturing sector is one of the most important sectors of the Indian economy. It is responsible for producing a wide range of goods, including electronics, automobiles, textiles, and chemicals. The manufacturing sector also plays a vital role in creating jobs and driving economic growth.

Examples of manufacturing sector

  • The electronics industry produces a wide range of electronic goods, such as computers, smartphones, and televisions.
  • Automobile industry produces cars, trucks, buses, and motorcycles.
  • The textile industry produces fabrics and clothing.
  • Chemicals industry produces a wide range of chemicals, such as fertilizers, pesticides, and pharmaceuticals.

Role of manufacturing sector in gross domestic product (GDP)

  • The manufacturing sector is one of the largest contributors to India's GDP.
  • With the latest print, GDP growth during the first half of the year, April-September 2023  added up to 7.7 per cent compared with 9.5 per cent in the year-ago period.
  • The GDP had recorded a four-quarter high growth of 7.8 per cent in April-June this year and had grown 6.2 per cent in July-September 2022.
  • Chief Economic Adviser V Anantha Nageswaran said overall investment and consumer sentiment will underpin solid momentum in the current and next financial years.
  • “In terms of projections, these numbers impart a certain upside to 6.5 per cent estimate for real GDP growth in the current year, but we will have to work the numbers to see what kind of upside the current numbers impart for the full-year estimates". 

Manufacturing sector and GDP

The manufacturing sector is connected to GDP in several ways.

  • The sector produces goods that are sold to consumers and businesses. These sales generate revenue for the sector, which contributes to GDP.
  • The sector employs a large number of people and the wages and salaries that these workers earn contribute to GDP.
  • The sector purchases goods and services from other sectors, such as the energy and transportation sectors. These purchases also contribute to GDP.

 

3. Real Gross Domestic Product (GDP)

Real GDP is a measure of the total output of an economy in a given year, adjusted for inflation. It is the most widely used measure of economic growth. Real GDP is calculated using the following formula:

Real GDP = Nominal GDP / GDP Deflator

  • Nominal GDP: This is the total value of all goods and services produced in an economy in a given year, without adjusting for inflation.
  • GDP deflator: This is a measure of inflation that is used to adjust nominal GDP for inflation.

Difference between real GDP and nominal GDP

  • The main difference between real GDP and nominal GDP is that real GDP is adjusted for inflation, while nominal GDP is not.
  • This means that real GDP is a more accurate measure of economic growth, as it takes into account the effects of inflation.
  • Nominal GDP can be misleading because it can increase simply due to inflation, even if the economy is not actually growing.
  • For example, if prices rise by 5% in a year, then nominal GDP will also increase by 5%, even if the total output of the economy remains the same.
  • Real GDP, on the other hand, will not increase simply due to inflation. Instead, it will only increase if the total output of the economy actually grows. This makes real GDP a more reliable measure of economic growth.
4. About the National Statistical Office (NSO)

The National Statistical Office (NSO) is an Indian government agency responsible for collecting, processing, analyzing, and disseminating statistical information relating to India's economic, social, and demographic conditions. It functions under the Ministry of Statistics and Programme Implementation (MoSPI) and plays a crucial role in providing evidence-based policymaking and informing the public about the country's progress and development.

Data released by NSO

The National Statistical Office (NSO) releases a wide range of data on various aspects of the Indian economy. Some of the key data releases include:

  • Monthly Industrial Production (IIP) provides data on the performance of the manufacturing sector by tracking the output of various industries.
  • Consumer Price Index (CPI) provides data on inflation, which is the rate at which prices for goods and services are rising.
  • The Wholesale Price Index (WPI) provides data on wholesale inflation, which is the rate at which the prices of goods sold in bulk are rising.
  • Annual Survey of Industries (ASI) provides detailed data on the performance of the manufacturing sector, including information on production, employment, and investment.

5. Way Forward

The manufacturing sector is a vital component of the economy, contributing significantly to GDP and driving economic growth. Understanding real GDP and its calculation is essential for assessing economic performance.

 

For Prelims: GDP, Manufacturing Sector, National Statistical Office, Ministry of Statistics and Programme Implementation, Consumer Price Index, Wholesale Price Index, Annual Survey of Industries, Monthly Industrial Production
For Mains: 
1. Analyze the role of the manufacturing sector as a major contributor to India's GDP and its impact on job creation and economic growth. (250 Words)
 
 
Previous Year Questions

1.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? (UPSC 2015)

(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production

2. With reference to Indian economy, consider the following statements: (UPSC 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

3. A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC CSE, 2015)
1. Slowing economic growth rate
2. Less equitable distribution of national income
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
 
4. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct? 
A. 1 only       B. 2 only       C. Both 1 and 2          D.  Neither 1 nor 2
 
5. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
 A. 1 and  2 only       B. 2 only       C. 3 only           D. 1, 2 and 3
 
6. As per the the National Statistical Office (NSO) report released on 7 January 2022, India's Gross domestic product (GDP) is expected to grow at ___________ per cent (in first advance estimates) in the fiscal year 2021-22?  (ESIC UDC 2022) 
A. 17.6 per cent     B. 9.5 per cent     C. 11 per cent        D. 9.2 per cent   E. None of the above
 
7. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC 2012)
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
A. 1 and 5 only         B. 2, 3 and 4 only         C. 1, 2, 3 and 4 only       D. 1, 2, 3, 4 and 5
 
Answer: 1-B, 2-B, 3-A, 4-C, 5-A, 6-D, 7-C
 
Mains
 
1.“Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far are the recent changes in Industrial Policy capable of increasing the industrial growth rate? (UPSC 2017)
 2. Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-à-vis the industry in the country? Can India become a developed country without a strong industrial base? (UPSC 2014)
3. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC  2020)
4. Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC 2021)
 
 Source: The Indian Express

DEFENCE ACQUISITION COUNCIL

1. Context

Recently, The Defence Acquisition Council (DAC) cleared the procurement of 97 Light Combat Aircraft Tejas Mk 1 A and 156 Light Combat Helicopters from Hindustan Aeronautics Limited among other big-ticket acquisitions worth Rs 2.23 lakh crores.
 

2. About the Defence Acquisition Council

The Defence Acquisition Council (DAC) is the apex body for all defence acquisitions in India. It was formed after recommendations made by the Group of Ministers on 'Reforming the National Security System' in 2001, post-Kargil war. The DAC is headed by the Defence Minister and comprises the following members:

  • Chief of the Defence Staff (CDS)
  • Secretary, Department of Defence Production
  • Secretary, Finance
  • Secretary, Defence Research and Development
  • Controller General of Defence Accounts
  • Other senior officers from the Ministry of Defence and the Services

The Role of the Defence Acquisition Council

The DAC's primary role is to:

  • Accord approval for AoN (Acceptance of Necessity) for Capital Acquisition Proposals.
  • Categorise the acquisition proposals into 'Buy, Buy & Make, & Make'.
  • In-principle approval of 15-Year Long-Term Integrated Perspective Plan (LTPP) for Defence Forces.
  • Delegate powers to Services/C&AS for the acquisition of items up to a certain value.
  • Consider and approve other issues as may be referred to it by the Defence Minister.

Functions of the Defence Acquisition Council

The DAC's primary functions are to:

  • Approve capital acquisitions for the Indian Armed Forces.
  • Formulate and implement policies and procedures for defence acquisitions.
  • Monitor the progress of defence acquisitions.
  • Oversee the implementation of the Defence Procurement Procedure (DPP).

Reasons for the creation of the Defence Acquisitions Council 

The DAC was created to address the following shortcomings of the previous defence acquisition system:

  • Lack of a clear and transparent decision-making process.
  • Delays in the procurement of defence equipment.
  • Escalation of costs.
  • Lack of coordination between different agencies involved in the procurement process.

3. About Defence acquisition

Defence acquisition is the process of acquiring goods and services for the Indian Armed Forces. It is a complex and time-consuming process that involves the identification of requirements, the preparation of specifications, the selection of vendors, the negotiation of contracts, and the delivery of equipment. The Indian defence acquisition process is governed by the Defence Procurement Procedure (DPP), which is a set of guidelines that outlines the process for acquiring defence equipment.

The key stages of the defence acquisition process:

  •  The first step is to identify the requirements of the Armed Forces. This is done through a detailed assessment of the operational needs of the Armed Forces and the availability of resources.
  • Once the requirements have been identified, the next step is to prepare the specifications for the equipment to be acquired. The specifications must be clear, detailed, and unambiguous so that the vendors can understand what is required.
  • The next step is to select the vendors who will be invited to participate in the bidding process. The vendors are selected based on their technical ability, financial strength, and experience.
  • Once the vendors have been selected, the next step is to negotiate the contracts. The contracts must be fair and reasonable, and they must protect the interests of the government.
  • The final step is to deliver the equipment to the Armed Forces. Once the equipment has been delivered, it must be tested and accepted by the Armed Forces.

4. The Defence Procurement Procedure (DPP)

The Defence Procurement Procedure (DPP) is the guideline for defence acquisitions in India. The DPP was first introduced in 2006 and has been revised several times since then. The DPP outlines the process for defence acquisitions, from the identification of a requirement to the final acceptance of a product.

The DPP is designed to ensure that defence acquisitions are conducted in a transparent, efficient, and cost-effective manner. The DPP also seeks to promote indigenous defence production and to maximize the involvement of Indian companies in the defence sector.

Key features of the DPP

  • The DPP emphasizes the need for transparency in all stages of the defence acquisition process. This includes publishing all relevant documents online and making them available to the public.
  • The DPP aims to streamline the defence acquisition process and reduce delays. This includes simplifying the tendering process and reducing the number of approvals required.
  • The DPP seeks to ensure that defence acquisitions are conducted cost-effectively. This includes negotiating the best possible price for goods and services and promoting indigenous defence production.
  • The DPP promotes indigenous defence production by giving preference to Indian companies in the tendering process. The DPP also provides incentives for Indian companies to invest in research and development.
  • The DPP seeks to maximize the involvement of Indian companies in the defence sector. This includes encouraging Indian companies to form joint ventures with foreign companies.

5. The Way Forward

The DAC and the DPP play a vital role in ensuring that the Indian Armed Forces are equipped with the latest and best possible weapons and equipment. The DAC and the DPP are also important for promoting indigenous defence production and for maximizing the involvement of Indian companies in the defence sector.

 

For Prelims: Defence Acquisition Council, Defence Procurement Procedure, Light Combat Aircraft, Tejas Mk 1 A and 156, Light Combat Helicopters, Hindustan Aeronautics Limited, Kargil war
For Mains: 
1. Critically analyze the role of the Defence Acquisition Council (DAC) in streamlining and expediting defence acquisitions in India. (250 Words)
 
Previous Year Questions
 
1. The Light Combat Aircraft (LCA) designed and developed by HAL is also known as (MP Police Constable 2017)
A. Suryakiran        B. Aryabhatta      C. Tejas         D. Prakash
 
 
2. Which of the following statements is true about the recent procurement of Tejas fighter’s aircraft by IAF? (IB ACIO Grade II 2021) 
(1) The IAF has recently purchased 83 Tejas fighters aircraft from HAL
(2) The total deal is Rs. 78,000-crore
A. 1 only         B. Neither 1 nor 2         C.  Both 1 and 2      D. 2 only
 
 
3. What is the name of India's indigenously built Light Combat Helicopter? (OSSC BSSO  2022) 
A. Nag         B. Trishul         C. Prachand          D. Agni
 
 
4. The headquarters of the Hindustan Aeronautics Limited is located at _______________. (MP Police Constable 2017) 
A. Chennai        B. Bengaluru        C.  Dewas     D. Koraput
 
 
5. What was Kargil war otherwise known as? (MP Patwari  2017) 
A. Operation Vijay       B. Operation Vishwas   C. Operation Shaurya   D. Operation Paramveer
 
Answers:1-C, 2-A, 3-C, 4-B 5-A
 
Mains
1. Analyze the circumstances that led to the Tashkent Agreement in 1966. Discuss the highlights of the Agreement. (UPSC 2013)
 
Source: The Indian Express
 

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