LINE OF ACTUAL CONTROL (LAC)
|
The eastern sector which spans Arunachal Pradesh and Sikkim,
The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh
|
- The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
- This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
- The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
- The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
- In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
- After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
- During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
- India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’
- LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC.
- India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
- The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
- To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC
The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.
The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.
|
For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh |
|
Previous Year Questions 1.The Line of Actual Control (LAC) separates (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D) |
GROSS DOMESTIC PRODUCT (GDP)
There are three primary ways to calculate GDP:
-
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.
-
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.
-
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:
-
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.
-
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.
-
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 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.
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:
-
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.
-
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.
-
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.
-
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.
-
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) |
UNIVERSITY GRANTS COMMISSION (UGC)
The primary functions of the UGC include:
- Allocating funds to universities and colleges.
- Formulating and implementing academic standards for higher education institutions.
- Monitoring and maintaining the quality of teaching, research, and examinations in universities.
- Providing guidance and coordination among universities and colleges in the country.
- Supporting and promoting innovations and improvements in the education system
University Grants Commission (UGC) Appointment, Tenure, and Eligibility
| Position | Appointment Method | Tenure | Minimum Eligibility |
|---|---|---|---|
| Chairperson | Appointed by the President of India | 5 years, extendable for another 5 years (subject to review) | Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in higher education. * No connection with the concerned university or its colleges. |
| Member | Appointed by the President of India | 5 years, extendable for another 5 years (subject to review) | Renowned scholar/expert with: * Proven track record in teaching/research/administration in relevant field. * Minimum 10 years of experience as Professor/equivalent in a University/College/Institute of national importance. * Demonstrated commitment to higher education development. |
| Vice-Chancellor (University) | Appointed by Executive Council of the University | 5 years, extendable for another 5 years | Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in the sphere of higher education. * No connection with the concerned university or its colleges. |
| Dean (Faculty) or Director (School/Institute) | Appointed by Executive Council of the University/Governing Council of the Institute | 5 years, extendable for another 5 years | Eminent scholar with: * Minimum 10 years of experience as Professor in relevant field. * Exceptional research record and contributions to the discipline. * Strong administrative and leadership skills. |
| Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Ph.D. in relevant subject with: * Proven track record of research publications in peer-reviewed journals. * Significant contribution to the discipline. * Experience in research supervision. |
| Associate Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Ph.D. in relevant subject with: * Good academic record and publications. * Minimum 8 years of teaching/research experience in relevant field. |
| Assistant Professor | Through Selection Committee constituted by the University | Up to 5 years (initially), extendable based on performance review | Master's degree with at least 55% marks and Ph.D. in relevant/allied/cognate discipline OR Master's degree with NET/SLET/SET qualification. |
The University Grants Commission (UGC) operates under statutory provisions outlined primarily in the University Grants Commission Act, 1956. Here are some of the key statutory provisions governing the UGC:
-
University Grants Commission Act, 1956: This is the primary legislation that established the UGC. It defines the roles, functions, powers, and responsibilities of the Commission. It also outlines the composition of the UGC, appointment procedures, and its authority to allocate funds to universities and colleges.
-
UGC (Institutions Deemed to be Universities) Regulations, 2016: These regulations provide guidelines for institutions seeking the status of "Deemed to be University." They specify the criteria, application process, and conditions for granting this status.
-
UGC (Minimum Standards of Instruction for the Grant of the First Degree through Non-formal/Distance Education) Regulations, 2017: These regulations specify the minimum standards for offering programs through distance education mode, ensuring quality education delivery.
-
UGC (Open and Distance Learning) Regulations, 2017: These regulations govern the standards and norms for open and distance learning programs offered by universities and institutions in India.
-
UGC (Establishment and Maintenance of Standards in Private Universities) Regulations, 2003: These regulations outline the norms and standards for the establishment and functioning of private universities, ensuring quality education.
-
UGC (Prevention, Prohibition, and Redressal of Sexual Harassment of Women Employees and Students in Higher Educational Institutions) Regulations, 2015: These regulations mandate higher educational institutions to establish mechanisms for preventing and addressing sexual harassment.
-
UGC (Promotion of Equity in Higher Educational Institutions) Regulations, 2012: These regulations aim to promote equity in higher education, focusing on providing opportunities to disadvantaged sections of society.
- UGC allocates funds to universities and colleges for their development, improvement, and maintenance
- Provides financial assistance to encourage and support research activities in various academic disciplines
- UGC establishes and maintains academic standards in higher education to ensure quality across universities and colleges
- Develops frameworks and guidelines for curriculum development in different academic programs
- UGC recognizes universities in India and provides approval for the establishment of new universities
- Monitors the quality of education, teaching, research, and examinations in universities to ensure adherence to set standards
- UGC promotes and supports research activities by providing grants, fellowships, and scholarships to students and faculty members
- Facilitates coordination and cooperation among universities and other higher educational institutions
- Advises the Central and State governments on matters related to higher education policies, regulations, and development
- Provides guidance, assistance, and recommendations to universities for enhancing their academic and research standards
- Conducts assessments and accredits higher education institutions to ensure and improve quality
- Undertakes periodic reviews and assessments to maintain and enhance the quality of education
- Implements programs and initiatives to promote access to higher education for underprivileged and marginalized sections of society
- Develops and revises regulations and guidelines governing various aspects of higher education, such as distance education, deemed universities, private universities, etc
- Collects, analyzes, and maintains data related to higher education for policy formulation and decision-making purposes
- Central Universities: Established by an Act of Parliament and are under the purview of the central government.
- State Universities: Established by state governments within their respective states.
- Deemed Universities: Granted the status of "Deemed to be University" by the University Grants Commission (UGC)
- Many colleges are affiliated with universities and offer undergraduate and postgraduate programs. The degrees awarded by these colleges are conferred by the affiliated university
- Some colleges have been granted autonomy by the University Grants Commission or the respective university. These colleges have the authority to design their curriculum and conduct examinations, and they award degrees on their own
- Certain institutes, like the Indian Institutes of Technology (IITs), National Institutes of Technology (NITs), Indian Institutes of Management (IIMs), and others designated as Institutes of National Importance, have the authority to award degrees
- Institutions like Indira Gandhi National Open University (IGNOU) and others recognized by the Distance Education Bureau (DEB) offer distance education programs and award degrees
The University Grants Commission (UGC) in India has a rich historical background that traces back to the pre-independence era and has evolved significantly over time:
Pre-Independence Era:
- 1920s-1940s: Before India gained independence, the idea of a body to oversee and promote higher education emerged. The need for such an institution was discussed during the 1920s and 1930s.
Post-Independence Formation:
- 1947: After India gained independence in 1947, discussions intensified regarding the establishment of a commission to oversee higher education and allocate funds to universities and colleges.
- 1950: The UGC was initially set up as an ad-hoc committee to oversee the allocation of grants to universities and colleges.
- 1956: The University Grants Commission Act was passed on December 28, 1956, establishing the UGC as a statutory body. This formalized its role in overseeing and promoting higher education.
Evolution and Functions:
- Early Years: Initially, the UGC focused on disbursing grants and fostering the development of universities and colleges.
- Expanding Role: Over time, the UGC's role expanded to encompass setting academic standards, promoting research, and advising the government on higher education policies.
- Regulatory Functions: It started playing a more regulatory role by formulating guidelines and regulations for various aspects of higher education.
Milestones and Amendments:
- 1960s-1970s: The UGC underwent amendments to accommodate changes in the higher education landscape and to enhance its effectiveness.
- Subsequent Decades: The UGC continued to evolve, adapting to the changing needs of higher education, introducing reforms, and addressing emerging challenges.
NILGAI
_male.jpg)
Here are some key characteristics of the Nilgai Antelope:
-
Size: Adult males are larger than females. Males can weigh up to 300 kg (660 lbs), while females are generally smaller.
-
Coloration: As mentioned, Nilgai are known for their bluish-gray color, which is more pronounced in males. Females and young ones may have a lighter brownish-gray coat.
-
Habitat: Nilgai are primarily found in grasslands and open forests. They are well adapted to a variety of habitats, including dry savannas, scrublands, and agricultural areas.
-
Behavior: Nilgai are herbivores, feeding on grasses and vegetation. They are diurnal (active during the day) and are known to form small groups, although larger aggregations can be seen in areas with abundant resources.
-
Conservation status: Nilgai are generally not considered threatened, and their populations are stable. They are widespread in their native range, which includes India, Nepal, and Pakistan
| Topic | Description |
|---|---|
| Social Structure | Nilgai often form small groups, consisting of females and their offspring. Adult males are usually solitary or may form small bachelor groups. Males may become more territorial during the breeding season. |
| Activity Patterns | Diurnal; active during the day. Rest in shaded areas during the hottest part of the day. More active in the early morning and late afternoon. |
| Feeding Habits | Herbivores; primarily feed on grasses and vegetation. Known to graze on a variety of plants, including crops in agricultural areas. |
| Water Dependence | Not highly dependent on water sources but require water for drinking. Presence often associated with areas where water is available. |
| Communication | Communicate through vocalizations, including grunts, bellows, and snorts. Vocalizations play a role in social interactions and mating behaviors. |
| Territorial Behavior | Adult males may become territorial during the breeding season, marking territories and engaging in confrontations with other males, especially when competing for mating opportunities. |
| Geographic Range | Native to the Indian subcontinent, including India, Nepal, and Pakistan. |
| Habitat Types | Found in diverse habitats, including grasslands, savannas, scrublands, and open forests. Adaptable to different environmental conditions, including semi-arid and arid regions. |
| Adaptability | Adaptable to various environmental conditions and can thrive in areas with varying levels of vegetation cover. |
| Human Proximity | Can adapt to human-altered landscapes and may be found in proximity to agricultural fields, where they may feed on crops. |
| Conservation Status | Populations are generally stable, and they are not considered threatened. Conservation efforts may focus on managing interactions with human activities. |
- The International Union for Conservation of Nature (IUCN) lists the nilgai as a species of least concern.
- The nilgai is also protected under Schedule III of the Wildlife Protection Act of 1972 in India.
- Some of the major protected areas for the nilgai in India include Gir National Park and Satpura National Park
- The nilgai is a common animal in India, but is only sparsely found in Nepal and Pakistan. It prefers areas with short bushes and scattered trees in scrub forests and grassy plains. They are common in agricultural lands, but hardly occur in dense woods
- The nilgai has a stable population and is not currently listed as a threatened species. However, the proliferation of nilgai and wild boar is now endangering other wildlife. Their main predator, the wolf, has all but disappeared from its known, traditional ranges
- The nilgai has a short coat that is yellow-brown in females, and gradually turns blue-gray in males as they mature. It also has a mane on the nape and back, a "hair pennant" in the middle of the underside of the neck, white markings on cheek and edges of the lips, and a white throat patch
The mighty nilgai thrives in various protected areas across India, finding refuge and sustenance in diverse landscapes. Here are some key havens worth mentioning:
North:
- Gir National Park (Gujarat): Home to iconic Asiatic lions, Gir also serves as a sanctuary for a sizeable nilgai population.
- Ranthambore National Park (Rajasthan): Witness majestic tigers and the graceful gait of nilgai amidst the rugged terrains of Ranthambore.
- Sariska Tiger Reserve (Rajasthan): Once declared extinct in this reserve, nilgai have made a remarkable comeback thanks to successful conservation efforts.
Central:
- Kanha National Park (Madhya Pradesh): Immerse yourself in the lush sal forests of Kanha, where tigers, sloth bears, and nilgai find a harmonious coexistence.
- Pench Tiger Reserve (Madhya Pradesh & Maharashtra): Spanning two states, Pench offers a thriving habitat for nilgai, interacting with a diverse array of wildlife.
- Satpura National Park (Madhya Pradesh): Discover the breathtaking terrain of Satpura, where hills, valleys, and plateaus form a scenic backdrop for nilgai herds.
South:
- Tadoba Andhari Tiger Reserve (Maharashtra): Explore the teak forests of Tadoba, where tigers rule the land and nilgai graze peacefully in the undergrowth.
- Kumbhalgarh Wildlife Sanctuary (Rajasthan): Nestled around the imposing Kumbhalgarh Fort, this sanctuary provides a safe haven for various herbivores, including nilgai.
HYPERGLOBALIZATION
2. About Hyperglobalization
Hyperglobalization refers to an increased level of interconnectedness and interdependence among countries, economies, and people on a global scale. It is a term often used to describe a phase of globalization characterized by a significant intensification of economic, political, cultural, and social interactions among nations.
Key features of hyperglobalization may include
- Hyperglobalization is marked by a surge in international trade, capital flows, and the integration of national economies into a global economic system. This is often facilitated by advancements in technology, transportation, and communication.
- Advances in communication technologies, particularly the internet, have played a crucial role in hyperglobalization by facilitating the rapid exchange of information, ideas, and culture across borders.
- Hyperglobalization is associated with increased mobility of capital across borders. Companies can easily invest in foreign markets, and financial markets become more interconnected.
- The widespread dissemination of global media, such as movies, music, and the internet, contributes to cultural homogenization, where certain aspects of global culture become more dominant, potentially eroding local cultural diversity.
- Nations become more politically interdependent as international organizations and agreements proliferate. Issues such as climate change, human rights, and global security require coordinated efforts among nations.
3. How Hyper-globalisation is measured?
Measuring hyperglobalization involves assessing various economic, social, and political indicators to determine the extent of global interconnectedness. While there is no single metric that definitively captures hyperglobalization, several indicators and indices are commonly used to gauge the level of global integration.
- One common indicator is the ratio of a country's total international trade (exports plus imports) to its Gross Domestic Product (GDP). A high trade-to-GDP ratio is often considered an indication of a high degree of economic openness and global integration.
- The amount of foreign direct investment a country receives or makes is another metric. Foreign Direct Investment (FDI) involves cross-border investments where a resident in one country obtains a lasting interest in, and a degree of influence over the management of, a business enterprise in another country.
- Examining the movement of capital across borders, including foreign portfolio investments and other financial transactions, provides insights into the degree of global financial integration.
- The participation of countries in global value chains, where various stages of production are spread across different countries, is a key indicator of economic interdependence. Analyzing the integration of production processes across borders provides a nuanced view of globalization.
- Assessing a country's level of connectivity through information and communication technologies, such as internet usage, mobile phone penetration, and broadband access, can indicate the extent to which information flows freely across borders.
- Cultural Flows: While more challenging to quantify, cultural indicators such as the global distribution of media, international tourism, and cross-cultural interactions can provide insights into the level of cultural exchange and homogenization.
- The extent to which nations participate in international organizations, treaties, and agreements is a measure of political interdependence and cooperation.
- Assessing the movement of people across borders, whether for work, education, or other reasons, provides insights into the social and demographic aspects of globalization.
4. Benefits and challenges of Hyperglobalization
Hyperglobalization has had a profound impact on the world, bringing both benefits and challenges.
Benefits
- Hyperglobalization has led to increased economic growth, as countries have been able to specialize in their areas of comparative advantage and access new markets.
- Consumers have benefited from lower prices for goods and services, as competition from abroad has put downward pressure on prices.
- Consumers have a wider variety of goods and services to choose from, as hyperglobalization has led to the spread of new products and technologies.
- Hyperglobalization has led to increased cultural exchange, as people from different cultures have more opportunities to interact with each other.
Challenges
- Hyperglobalization has led to increased inequality, as some workers have lost their jobs to competition from abroad. It has also led to the concentration of wealth in the hands of a few.
- The increased flow of goods and services has led to increased environmental damage, as transportation and production generate pollution.
- Some people fear that hyperglobalization is leading to a homogenization of cultures, as Western culture becomes more dominant.
- The increased movement of people and goods across borders has raised security concerns, such as the potential for the spread of terrorism and disease.
5. What is the Economic Survey?
- The Economic Survey in the context of India refers to the annual document prepared by the Economic Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
- The Economic Survey reviews the economic progress of the country and issues in the last 12 months. The survey provides information related to the performance of key developmental schemes launched by the government. The document also explains the performance of major government policies and their impact.
- The Economic Survey discusses major fiscal developments, macroeconomic factors, inflation, and other economic factors. The document also highlights the impact of agriculture, climate change, and employment on the economy of the country.
- The 1st Economic Survey was tabled in 1950-51. However, till the year 1964, it was presented along with the budget.
- The Economic Survey is an important reference for understanding the economic context in which the government formulates its budget and economic policies.
6. The Key Points of the Economic Survey 2022-23
The Economic Survey 2022-23, presented in January 2023, covered various aspects of the Indian economy and offered insights into future prospects.
Key Points
India is projected to witness a GDP growth of 6.0% to 6.8% in the fiscal year 2023-24, depending on global economic and political developments.
Positive Factors for Growth:
- Rebound of private consumption boosting production activity.
- Higher Capital Expenditure (Capex).
- Near-universal vaccination coverage enabling spending on contact-based services.
- Return of migrant workers, leading to a decline in housing market inventory.
- Strengthening of corporate balance sheets.
- Well-capitalized public sector banks ready to increase credit supply.
- The Economic Survey projects a baseline GDP growth of 6.5% in real terms for the fiscal year 2023-24.
- Factors Driving Growth in FY23: Private consumption and capital formation were the principal drivers. Employment generation is seen through declining urban unemployment rates and increased registrations in the Employee Provident Fund. Successful vaccination drives boosting consumer sentiments.
- Limited health and economic fallout globally from the surge in COVID-19 infections in China.
- Inflationary impulses from China's reopening are not significant. Recessionary tendencies in major Advanced Economies triggered a return of capital flows to India.
- Credit growth to the Micro, Small, and Medium Enterprises (MSME) sector has been high. Recovery of MSMEs supported by government schemes like Emergency Credit Linked Guarantee Scheme (ECLGS).
- Capital Expenditure (Capex) of the central government increased significantly. Public digital platforms and initiatives like PM GatiShakti and Production-Linked Incentive schemes contribute to economic growth.
- Construction activities have risen, aided by the return of migrant workers. The housing market witnessing a decline in inventory overhang. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) contributes to rural job creation.
- Global economic shocks include COVID-19 disruptions, the Russian-Ukraine conflict, and synchronized policy rate hikes by central banks. Global growth is projected to decline in 2023, leading to subdued trade and lower commodity prices.
- India's recovery from the pandemic is expected to continue, supported by domestic demand and increased capital investment. Private sector capital formation cycle showing signs of revival.
- Structural reforms like GST and Insolvency and Bankruptcy Code enhance economic efficiency.
- Inclusive growth is highlighted as essential for job creation. Government schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) support MSMEs. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) creates job opportunities.
- India faced challenges such as disruptions due to the conflict, inflation, and monetary tightening. India's resilience is reflected in economic recovery and its ability to withstand external imbalances.
- Six global challenges were discussed, including COVID-19 disruptions, conflict in Europe, and central banks' policy rate hikes. India's ability to withstand challenges is noted, with higher growth projections compared to major economies.
|
For Prelims: Hyperglobalization, COVID-19, Economic Survey, Foreign Direct Investment
For Mains:
1. "Hyperglobalization is a double-edged sword for the Indian economy, offering immense opportunities but also posing significant challenges." Discuss how India can navigate this complex reality to achieve sustainable and inclusive growth. (250 Words)
2. Evaluate the impact of hyperglobalization on India's federal structure. Discuss the concerns regarding increasing centralization and suggest measures to ensure a balanced and harmonious relationship between the Centre and the States. (250 Words)
3. How can India utilize hyperglobalization to enhance the competitiveness of its Micro, Small and Medium Enterprises (MSMEs) and integrate them into the global value chains? Analyze the challenges and suggest effective strategies. (250 Words)
|
|
Previous Year Questions
1. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B.The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answers: 1-B, 2-C
|
NUTRIENT-BASED SUBSIDY (NBS)
Nutrient-based subsidy (NBS) is a scheme implemented by the Indian government to provide subsidies on fertilizers based on the nutrient content (Nitrogen, Phosphorus, Potassium, and Sulfur) rather than the type of fertilizer. This aims to encourage farmers to use fertilizers more efficiently and judiciously, promoting balanced nutrient application for their crops.
The determination of prices of NBS fertilizers
NBS fertilizer prices are not directly determined by the government. Instead, the government announces fixed per-kg subsidy rates for each nutrient (N, P, K, and S). Manufacturers and importers of fertilizers then determine the selling price by considering:
- Cost of production and import includes raw material costs, processing costs, and import duties.
- Manufacturers consider market demand for specific fertilizers and adjust prices accordingly.
- Fixed subsidy per kg of nutrient is directly deducted from the selling price, making nutrient-rich fertilizers more affordable for farmers.
Therefore, the final selling price of an NBS fertilizer depends on a combination of these factors, resulting in dynamic pricing based on market forces while ensuring affordability through the fixed subsidy.
NBS rates
NBS rates represent the fixed amount of subsidy provided by the government per kg of each nutrient. These rates are announced by the government twice a year, for Kharif and Rabi seasons, and are based on various factors like:
- Fluctuations in global prices impact production costs and influence subsidy levels.
- Availability and demand for fertilizers within India influence the subsidy needed to ensure affordability.
- The total budget allocated for fertilizer subsidies determines the level of support provided for each nutrient.
Benefits of NBS
- Encourages farmers to focus on specific nutrient needs of their crops, reducing wastage and promoting balanced soil fertility.
- By targeting subsidies towards specific nutrients, the government can potentially control overall subsidy expenditure.
- Transparent pricing based on nutrient content allows for better market understanding and informed decision-making by farmers.
- Balanced nutrient application can lead to healthier soil, improving long-term crop yields and sustainability.
Challenges of NBS
- Farmers might need more education and support to understand and utilize the NBS scheme effectively.
- Potential for manufacturers to exploit the system by manipulating nutrient content or prices.
- Accurate soil testing and data on crop-specific nutrient requirements are crucial for the optimal utilization of NBS, but these aspects might need further development.
3. Fertilizer Consumption in India
Fertilizer consumption in India is a critical aspect of the country's agriculture sector, contributing significantly to the overall productivity of crops. The use of fertilizers helps enhance soil fertility and ensures better yields.
Fertilizers are substances added to soil to enhance plant growth by supplying essential nutrients. These nutrients, primarily nitrogen (N), phosphorus (P), potassium (K), and sulfur (S), are crucial for various plant functions like photosynthesis, root development, and fruit production.
Urea is a white, crystalline fertilizer containing the highest concentration of nitrogen (46%) among commonly used fertilizers. It is readily soluble in water and readily absorbed by plants, making it a popular choice for quick nitrogen supply. However, excessive urea use can have drawbacks.
Reasons for the Shift from Urea to DAP
Several factors have driven the recent shift from excessive urea use towards increased diammonium phosphate (DAP) consumption:
Imbalanced Nutrient Use: India has traditionally relied heavily on urea, leading to imbalanced soil fertility with excess nitrogen and deficiencies in other nutrients like phosphorus. This can harm soil health, reduce crop yields, and contribute to environmental issues like nitrate leaching.
Government Initiatives: Recognizing the need for balanced fertilization, the government has:
- Reduced the subsidy on urea aims to discourage its overuse and encourage farmers to explore other nutrient sources.
- Promoted DAP: Increased subsidy on DAP to make it more affordable and incentivize its use.
- The Nutrient-Based Subsidy (NBS) scheme provides subsidies based on the nutrient content (N, P, K, S) of fertilizers, further encouraging balanced use.
Soil Health Concerns: Excessive urea application can:
- Increasing soil acidity can harm beneficial soil microbes and reduce nutrient availability for plants.
- Contribute to nitrate leaching: Excess nitrogen can leach into groundwater, causing potential health risks and environmental damage.
Phosphorus Deficiency: Indian soils are often deficient in phosphorus, which plays a crucial role in root development and crop yields. DAP provides readily available phosphorus, addressing this deficiency.
Improved Crop Response: DAP can be more effective than urea in some crops and soil types, leading to improved yields and farmer income.
4. The Way Forward
The NBS scheme aims to promote balanced fertilizer use and improve soil health. The recent shift from urea to DAP reflects these goals and the government's efforts to incentivize balanced nutrient application for sustainable agriculture.
|
For Prelims: Nutrient-Based Subsidy, Fertilizers, Urea, nitrogen, phosphorus, potassium, sulfur, Kharif, Rabi, di-ammonium phosphate For Mains: 1. Discuss the potential economic and environmental implications of the recent shift from urea to DAP consumption in India. (250 Words)
2. Discuss the ethical concerns associated with the use of chemical fertilizers, including their potential impact on human health and the environment. (250 Words)
|
|
Previous Year Questions
1. With reference to chemical fertilizers in India, consider the following statements: (UPSC 2020)
1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
2. Ammonia, which is an input of urea, is produced form natural gas.
3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 2 only D. 1, 2 and 3
2. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (UPSC 2019)
Which of the statements given above are correct? (a) 1 and 3 only (b) 2, 3 and 4 only (c) 2 and 4 only (d) 1, 2, 3 and 4
3. Consider the following crops: (2013)
Which of these are Kharif crops? (a) 1 and 4 (b) 2 and 3 only (c) 1, 2 and 3 (d) 2, 3 and 4 Answers: 1-B, 2-A, 3-C |
Source: The Indian Express
