Monthly Per Capita Consumer Expenditure (MPCE) is a metric that measures the average spending per person in a household over a specified period, usually a month. It is a key indicator used in economic surveys and studies to assess the patterns of household consumption and expenditure.

Here's a breakdown of the components:

• Monthly: The expenditure is calculated over a monthly timeframe. This allows for a regular and standardized measurement of consumer spending.

• Per Capita: The total household expenditure is divided by the number of individuals in the household to arrive at the per capita expenditure. This normalization accounts for variations in household size, providing a more accurate representation of spending on an individual basis.

• Consumer Expenditure: This includes the total spending on various goods and services by members of a household. Consumer expenditure encompasses a wide range of items such as food, housing, education, healthcare, transportation, entertainment, and more.

MPCE is a crucial parameter for understanding the economic well-being and consumption patterns of households. It helps policymakers, researchers, and economists analyze trends in consumer behavior, identify changes in spending patterns over time, and assess the impact of economic policies on households.

The data on MPCE is often collected through household surveys, such as the National Sample Survey in India, where respondents are asked to provide details about their expenditures across different categories. This information is then aggregated and analyzed to draw conclusions about the economic conditions of the population

5.Way Forward

The Consumer Price Index (CPI)-based inflation, also called retail inflation, is currently based on a basket that was decided in 2012. But over the last 11 years, as the latest Household Consumption Expenditure (HCE) Survey 2022-23 shows, a lot has changed.

Source: Indianexpress

WORLD TRADE ORGANISATION (WTO)

1. Context

2. What is WTO?

• The World Trade Organization is the only international organization that deals with the rules of trade between countries.
• The WTO officially commenced in 1995 under the Marrakesh Agreement signed by 124 nations, replacing the General Agreement on Tariffs and Trade (GATT).
• Currently, it has 164 members and 23 observer governments (like Iran, Iraq, Bhutan, Libya, etc).
• According to its rules, all decisions are taken through consensus and any member can exercise a veto.
• It aims to promote free trade, which is done through trade agreements that are discussed and signed by the member states.
• The WTO also provides a forum for countries to negotiate trade rules and settle economic disputes between them. 

3. What is WTO's Ministerial Conference?

• The Ministerial Conference is the WTO’s top decision-making body and usually meets every two years.
• All members of the WTO are involved in the Ministerial Conference and they can take decisions on all matters covered under any multilateral trade agreements.
• The WTO’s 12th Ministerial Conference was held in Geneva from 12-17 June.
• It was supposed to end on 15 June, but with intensifying negotiations, the conference was extended by two days. 

4. Key takeaways from the meeting

4.1 Curtailing harmful fishing subsidies

• The WTO passed a multilateral agreement that would curb ‘harmful’ subsidies on illegal, unreported, and unregulated fishing for the next four years, to better protect global fish stocks.
• Since 2001, member states have been negotiating the banning of subsidies that promote overfishing.
• The current agreement, which establishes new trading rules, is the second multilateral agreement in WTO history. 
• India and other developing countries were able to win some concessions in this agreement.

4.2 Global food security

• Members agreed to a binding decision to exempt food purchased by the UN's World Food Programme (WFP) for humanitarian purposes, from any export restrictions.
• In light of the global food shortages and rising prices caused by the war between Ukraine and Russia, the group's members issued a declaration on the importance of trade in global food security and that they would avoid bans on food exports.
• However, countries would be allowed to restrict food supplies to ensure domestic food security needs.
• India's key demand to allow it to export food from its public stockholdings to other countries will reportedly be discussed in the next Ministerial Conference in 2023.

4.3 E-Commerce transactions

• Members agreed to continue the long-standing moratorium on customs duties on e-commerce transmissions.
• It will be continued until the subsequent Ministerial Conference or until March 31, 2024, depending on whichever comes first.

4.4 Covid-19 vaccine production

• WTO members agreed to temporarily waive intellectual property patents on Covid19 vaccines without the consent of the patent holder for 5 years so that they can more easily manufacture them domestically.
• The current agreement is a watered-down version of the original proposal made by India and South Africa in 2020.
• They had wanted broader intellectual property waivers on vaccines, treatments, and tests.
• Rich pharmaceutical companies had strongly opposed this, arguing that IPs do not restrict access to Covid vaccines and that the removal of patent protections gives researchers that quickly produced life-saving vaccines, a negative message. 
• The waiver agreed upon by the WTO was criticized by advocacy groups for being narrow in scope, as it did not cover all medical tools like diagnostics and treatments.

5. Significance of the Recent Agreements

• The fisheries agreement is of immense significance as it is the first time that members agreed with environmental sustainability at its heart.
• It will also help in the protection of the livelihoods of the 260 million people who depend directly or indirectly on marine fisheries. It is only the second multilateral agreement on global trade rules struck in its 27-year history.
• Second, the exemption of WFP's food from tariffs is vital for promoting global food security, especially in light of the global food shortages and rising prices caused by the war between Ukraine and Russia.
• Third, the temporary waiver will contribute to ongoing efforts to concentrate and diversify vaccine manufacturing capacity so that a crisis in one region does not leave others cut off.

6. Issues surrounding WTO

6.1 The burden for Poor countries

• The WTO rules include many Non-trade subjects as well. The subjects like environment, labor standards, fossil fuel subsidies, plastic pollution, and transparency in government procurement have been brought into the fold of the WTO.
• This is expected to raise costs for the poor and developing countries and impact the competitiveness of their goods.
• For instance, a poor country exporting cotton shirts must first meet high environmental standards at home. This will only raise costs and cut exports from poor countries.

6.2 Trade wars

• The US administration imposed steep tariffs in January 2018 on China alleging IP violations.
• In December 2019 the US also blocked the appointment of new nominees to WTO’s appellate body. This has paralyzed the WTO as a judge and enforcer of global trade rules.

6.3 Lack of consensus

• The developed nations’ game plan is to put the old obligations on the back burner and push the WTO to form rules on new areas like e-commerce.
• It is an area where the US firms have a clear edge.
• Most WTO member countries want them to first deliver on the agreed issues like reduction in agriculture subsidies.

 

For Prelims: General Agreement on Tariffs and Trade (GATT), Marrakesh Agreement, World Trade Organisation (WTO), 12th Ministerial Conference of WTO, and UN's World Food Programme (WFP). For Mains: 1. What have been the recent issue related to dispute settlement at WTO? Have the policies at WTO worked against the interest of emerging economies like India?(250 Words)

 

Previous year Questions 1. In the context of which of the following do you sometimes find the terms 'amber box, blue box, and green box' in the news? (UPSC 2016) A. WTO affairs B. SAARC affairs C. UNFCCC affairs D. India-EU negotiations on FTA Answer: A   2. In the context of the affairs which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently? (UPSC 2010) A. United Nations Environment Program B. World Trade Organization Agreement C. ASEAN-India Free Trade D. G-20 Summits Answer: B   3. Consider the following statements: (UPSC 2017) 1. India has ratified the Trade Facilitation Agreement (TFA) of the WTO. 2. TFA is a part of WTO's Bali Ministerial Package of 2013. 3. TFA came into force in January 2016 Which of the statements given above is/are correct? A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3 Answer: A

 

Source: The Indian Express

LORD KRISHNA'S DWARAKA

 

 

 

 

1. Context

 

Prime Minister Narendra Modi recently visited the pilgrimage town of Dwarka, in Gujarat’s Devbhoomi Dwarka district, where he inaugurated several infrastructural projects, including the Sudarshan Setu, India’s longest cable-stayed project connecting Okha town with the island of Beyt Dwarka.

During his visit, he also went scuba diving off the Panchkui beach coast and performed underwater prayers at the site believed to be Dwarka Nagari – the mythological kingdom of Lord Krishna in the Mahabharata.

2. Dwarka in Hindu Mythology

• Dwarka holds immense significance in Hindu culture, primarily due to its association with Lord Krishna and the Mahabharata. According to legend, after defeating his uncle Kamsa, Krishna migrated from Mathura to Dwarka with his Yadava clan.
• Here, he founded his kingdom by reclaiming 12 yojanas of land from the sea.
• References in the Vishnu Purana describe Dwarka as a city adorned with beautiful gardens, moats, ponds, and palaces.
• However, the town is believed to have been submerged under the sea after the demise of Lord Krishna.

3. Locating Dwarka

• Present-day Dwarka, a coastal town at the mouth of the Gulf of Kutch, is a vital part of the Krishna pilgrimage circuit, along with Vrindavan, Mathura, Govardhan, Kurukshetra, and Puri. Dwarka is renowned for the 13th-century Dwarkadheesh temple dedicated to Lord Krishna. Other sites along the Saurashtra coast, like Bet Dwarka and Mul Dwarka, also feature in legends related to Lord Krishna.
• Since the early 20th century, scholars have tried to pinpoint the exact location of 'Dwarka' as mentioned in the Mahabharata. Most rely on ancient literature and the works of other scholars.
• The question remains: Is present-day Dwarka the same as the one described in ancient texts, a town that may now lie submerged under the sea? Or is it a mythological town whose historical authenticity may never be conclusively established?
• Alok Tripathi, Additional Director General of the Archaeological Survey of India (ASI), in his paper 'Excavations at Dwarka-2007' (2013), mentioned F E Pargiter, a British civil servant and orientalist who suggested in 1904, in his translation of the Markandeya Purana, that Dwarka was located on the 'Raivataka', a mountain range mentioned in the Mahabharata. This mountain range is believed to be the present-day Girnar hills in Junagadh, around 200 km away from the current Dwarka town.
• Historian A S Altekar, who, in the 1920s, “discussed that modern Dwarka may not have been as old as 1200 BCE, but accepted that it had been submerged as mentioned in some ancient texts”.
• Scholar A D Pulsakar in his 1943 essay, ‘Historicity of Krishna’, suggested that present-day Dwarka is the same as the one mentioned in the Mahabharata. Similar thoughts were expressed by archaeologist H D Sankalia in the 1960s.

 

4. Archaeological Findings on Land

• In the 1960s, scholars shifted their focus from ancient literature to finding tangible evidence of Lord Krishna’s Dwarka. Initial excavations concentrated on the land around present-day Dwarka, but as speculation grew about a submerged city, later explorations ventured underwater.
• The first excavation near the Dwarkadheesh temple in 1963, conducted by the Deccan College in Pune and the Gujarat government’s Department of Archaeology, had to be limited due to the area's dense population. The findings suggested the site had been inhabited for 2,000 years, but didn't align with the legendary city. Nonetheless, these discoveries spurred further studies.
• In 1979, the ASI, led by archaeologist S R Rao, conducted a second round of excavations around the Dwarkadheesh Temple during area development. Although no official report was published, the ASI Director-General mentioned the discovery of remains of three earlier temples and Lustrous Red Ware pottery dating back to the mid-second millennium BCE.

5. The Underwater Search for Dwarka

• The discoveries on land sparked a surge of interest in Dwarka, leading to speculation about a submerged ancient settlement.
• For two decades, a dedicated team of marine archaeologists and scientists from the National Institute of Oceanography (NIO), a laboratory under the Council of Scientific and Industrial Research (CSIR), embarked on an extensive underwater quest in the Arabian Sea to find the 'sunken' city.
• Marine archaeologists uncovered approximately "200 stone anchors, stone structures, stone sculptures, small pottery pieces, marble statues, iron anchors, and other metal objects."
• The importance of considering the entire region, including Bet Dwarka, Nageshwar, Pindara, and Gopi Talab, all within 30 kilometres of Dwarka. At Bet Dwarka, found evidence from the early historical period (6th century BCE to 6th century CE) and the late Harappan period (approximately 1900 to 1300 BCE). The stone anchors found underwater at Dwarka resembled those from the Late Harappan period at Bet Dwarka, suggesting they were from the same era. This period aligns with the Mahabharata.
• However, Alok Tripathi from the ASI noted in his paper that while the NIO's findings generated public interest, they lacked clarity.
• Between 2005 and 2007, the ASI's Underwater Archaeology Wing (UAW), led by Alok Tripathi, conducted another round of underwater excavations.
• These excavations revealed that the structural remains scattered on the seabed were not in situ but had been transported by waves and currents. Consequently, assigning a specific date to them was challenging.
• The search for Dwarka's ancient secrets continues.

 

6. The Way Forward

 

The quest to locate and understand the historical reality behind Dwarka continues. While the search for a submerged city hasn't yielded definitive proof, the ongoing explorations offer valuable insights into the region's past and its enduring cultural significance.

 

 

For Prelims: Dwarka, Arabian Sea, Mahabharat, National Institute of Oceanography, Council of Scientific and Industrial Research, Underwater Archaeology Wing, Harappan Period,  Archaeological Survey of India   For Mains:  1. Discuss the efforts made by scholars and archaeologists to locate the exact site of Dwarka as mentioned in ancient texts, and what conclusions have been drawn from these efforts. (250 Words) 2. "Mythology and history often intertwine, shaping cultural narratives and identities." Elaborate on this statement with reference to the case of Dwarka and its place in Hindu culture. (250 Words)

 

 

Previous Year Questions   1. With reference to the history of India, consider the following pairs: (UPSC 2020)  Famous Place           Present State 1. Bhilsa                   Madhya Pradesh 2. Dwarasamudra     Maharashtra 3. Girnagar               Gujarat 4. Sthanesvara         Uttar Pradesh Which of the pairs given above are correctly matched?  A. 1 and 3 only     B. 1 and 4 only        C.  2 and 3 only         D. 2 and 4 only     2. Which city is the 'Queen Arabian sea'? (MPSC 2013)   A. Mumbai     B. Cochin      C. Porbandar        D. Panambur     3. Which of the following is associated to the Sanskrit Mahabharata? (SSC MTS 2019) A. Yuddha Kanda          B.Kathasaritsagar      C.  Shanti Parva      D. Gitagovinda   Answers: 1-A, 2-B, 3-C

 

Source: The Indian Express

KARNATAKA'S TEMPLE BILL 

 

 

 

 

1. Context

 

The Karnataka government's bid to amend the law governing the taxation of Hindu temples faced a roadblock in the Legislative Council, where the primary Opposition, the Bharatiya Janata Party (BJP), holds a majority.

The Karnataka Hindu Religious Institutions and Charitable Endowments (Amendment) Bill, 2024, was presented in the Legislative Assembly on February 19 and approved on February 22. However, it was turned down two days later by the Legislative Council.

 

2. Proposed Changes in Taxation of Karnataka's Temples

• The Karnataka government proposed amendments to the Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997, aimed at altering the taxation structure for temples in the state.
• The primary change was to divert "10% of the gross income of institutions whose gross annual income exceeds Rs 1 crore" to a common pool for temple maintenance. This was a shift from the existing "10% of the net income of institutions whose gross annual income exceeds Rs 10 lakh." Net income is calculated after deducting expenses, while gross income refers to the total revenue.
• Additionally, the Bill suggested allocating 5% of the income of institutions earning between Rs 10 lakh and Rs 1 crore to the common pool, changing the previous income bracket from Rs 5 lakh to Rs 10 lakh.
• The common fund pool was established by the government in 2011 through amendments to the 1997 Act.
• Had the amendments passed, they would have resulted in an additional Rs 60 crore from 87 temples with incomes exceeding Rs 1 crore and 311 temples with incomes over Rs 10 lakh.
• Section 19 of the Act outlines the purposes for which the common fund may be used, including religious studies and propagation, temple maintenance, and other charitable causes.
• The government had proposed using the increased funds to provide aid to lower-income temples, offer terminal benefits to ailing priests, and grant scholarships to children from priest families.

 

3. Criticism of the Amendments

• The proposed amendments faced criticism government for attempting to "rob" temples and questioned why only Hindu temples were being targeted for these changes.
• Why is the government eyeing the incomes of Hindu temples when it is not interested in the revenue of other religions?"
• In response, The amendments stated that there has always been a mandate to create a common pool since the enactment of the Act in 1997 clarified that the common pool is administered solely for religious purposes connected with the Hindu religion and that it will continue to be used for the same purposes.

 

4. Additional Changes Proposed by the Bill

Apart from the changes related to the taxation of temples, the Karnataka Hindu Religious Institutions and Charitable Endowments (Amendment) Bill, 2024 proposed several other amendments

1. Composition of the Committee of Management: Under Section 25 of the Act, temples and religious institutions are required to form a “committee of management” consisting of nine people, including a priest, at least one member of a Scheduled Caste or Scheduled Tribe, two women, and one member of the locality of the institution. The Bill proposed to include, among the remaining four members, one person “skilled in Vishwakarma Hindu temple architecture and sculpture.”

2. Appointment of the Chairman: The Bill also gave the Rajya Dharmika Parishat the power to appoint the chairman of these committees. The Rajya Dharmika Parishat is a body appointed by the state government that is empowered to make decisions on a variety of subjects related to religion. This includes religious disputes over practices and customs, whether a temple is a “composite institution” by allowing religious worship besides Hinduism, whether a temple is private, public or denominational, and whether a person is a hereditary trustee of a religious institution by succession.

3. Creation of Oversight Committees: Finally, the Bill also required the state government to create district-level and state high-level committees to oversee infrastructural projects that can facilitate pilgrimage to temples making more than Rs 25 lakh annually.

 

5. Temple Revenue Management in Other States

Telangana

• Telangana's approach shares similarities with the Karnataka model. Under Section 70 of the Telangana Charitable and Hindu Religious Institutions and Endowments Act, 1987, the Commissioner in charge of the administration of religious institutions can create a “Common Good Fund”.
• Religious institutions making more than Rs 50,000 annually are required to pay 1.5% of their annual income to the state government. After the government is repaid for expenses it has incurred under the Telangana Act, the commissioner can direct the remaining funds to the Common Good Fund. These funds are utilized for the maintenance and renovations of temples, Veda-pathasalas (religious schools), and for the establishment of new temples.

Kerala

• Kerala employs an entirely different system, where temples are often managed by state-run Devaswom (temple) Boards.
• The state has five autonomous Devaswom Boards that manage over 3,000 temples. These boards are run by nominees appointed by the ruling government, who are often politicians.
• Each Devaswom Board has a budget allocated by the state government and is not required to share revenue figures. The state has also enacted separate laws for each Devaswom board (besides Travancore and Cochin which are governed by the same Act), which deals with the administration and management of temples under their aegis.

 

6. The Way Forward

 

The controversy surrounding the Karnataka Temple Bill underscores the need for careful consideration, stakeholder engagement, and a balanced approach to temple management and taxation. By addressing criticisms, revisiting amendments, exploring alternative models, and promoting interfaith dialogue, the government can work towards a sustainable and inclusive framework for the management of Hindu temples in Karnataka.

 

 

For Prelims: Karnataka Temple Bill,  Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997, Karnataka Hindu Religious Institutions and Charitable Endowments (Amendment) Bill, 2024, Telangana Charitable and Hindu Religious Institutions and Endowments Act, 1987   For Mains:  1. Controlling the religious temples by some state governments comes under the ambit of secularism in India. comment. (250 Words)

 

Source: The Indian Express