Specific Concerns

• The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
• The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
• Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
•  The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
•  The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.

3. Money laundering

• Money laundering is the illegal process of making large amounts of money.
• This money is generated by criminal activity but may appear to come from a legitimate source.
• Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.

3.1. Different stages in money laundering

1. Placement: The crime money is injected into the formal financial system.
2. Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
3. Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated.  The money now can be used by the offender as legitimate money.

Money laundering can have a significant impact on economic development by:

• When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
• Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
• Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
• Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
• Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
• Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
• Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.

The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.

4.1. Key Features of the PMLA

• The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
• The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
• The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
• The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
• The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.

4.2. Significance of the PMLA

The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.

4.3. Challenges in Implementing the PMLA

Despite its significance, the implementation of the PMLA has faced certain challenges, including:

• The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
• There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
• The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.

• The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
• The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
• The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
• Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
• Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
• The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
• Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
• It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
• The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.

5.1. Functions and Roles of ED

• Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
• Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
• Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
• Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.

DIRECT TAXES

 

 

1. Context

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget on July 23. This will be the first full-year Budget for the new government, now in its third term.The fiscal deficit for Financial Year 2023-24 was 5.63% of GDP with a target of 5.1% for FY2024-25. Given the significant share of personal tax in overall direct-tax collections, the government is unlikely to introduce measures that would greatly reduce tax revenue

 

2. What is a Direct Tax?

A direct tax is one that is levied directly on an individual or organization's income, wealth, or property. The taxpayer bears the burden of the tax and cannot easily shift it to someone else. In contrast, an indirect tax is levied on a transaction, such as a sale of goods or services, and often gets passed on to the consumer in the final price.

Here are some common examples of direct taxes:

• Income tax: This is a tax on the income earned by individuals and businesses.
• Property tax: This is a tax on the value of real estate or other property.
• Wealth tax: This is a tax on the total value of a person's assets. (Less common than income and property tax)
• Inheritance tax: This is a tax on the value of assets that are inherited from a deceased person.

3. What is the difference between direct tax and indirect tax? 

 

Subject	Direct Tax	Indirect Tax
Definition	Taxes imposed directly on individuals or entities.	Taxes imposed on goods and services rather than on individuals or entities directly.
Burden	Cannot be shifted; borne by the taxpayer.	Initially borne by the seller or producer, but can be shifted to the end consumer through higher prices.
Examples	Income tax, property tax, wealth tax, capital gains tax.	Sales tax, value-added tax (VAT), excise duty, customs duty, goods and services tax (GST).
Progressivity	Usually progressive; tax rate increases as taxable amount increases.	Not inherently progressive; applied uniformly regardless of income level.

 

4. What are the components of direct tax?

 

Direct taxes typically consist of several components, each targeting different sources of income or assets.

The main components of direct taxes include:

• Income Tax: This is the tax imposed on an individual's or entity's income, including wages, salaries, interest, dividends, rental income, and other sources of income. Income tax rates may vary depending on the level of income and other factors.

• Corporate Tax: Corporations are subject to corporate income tax on their profits. This tax is levied on the earnings of corporations and business entities.

• Capital Gains Tax: This tax is levied on the profit earned from the sale of assets such as stocks, bonds, real estate, and other investments. The tax rate may vary depending on how long the asset was held before being sold.

• Property Tax: Property tax is imposed on the value of real estate properties owned by individuals or entities. It is typically assessed annually by local governments based on the assessed value of the property.

• Wealth Tax: Some countries levy a tax on the net wealth or assets owned by individuals or entities above a certain threshold. This tax is often based on the total value of assets such as real estate, investments, cash, and other valuables.

• Inheritance Tax (Estate Tax): This tax is imposed on the transfer of assets from a deceased person to their heirs or beneficiaries. It is based on the value of the inherited assets and may vary depending on the relationship between the deceased and the heir, as well as the size of the estate

 

 

Income tax is part of direct tax or indirect tax?   Income tax is a component of direct tax. It is imposed directly on individuals or entities based on their income. The burden of income tax cannot be shifted to someone else; it is the responsibility of the taxpayer to pay the tax on their earnings. Therefore, income tax falls under the category of direct taxes

 

5.What is the tax structure in India?

 

India's tax structure has three tiers: central government, state governments, and local municipal bodies. Each tier levies specific taxes. Here's a breakdown:

Level	Taxes Levied
Central Government	* Income Tax * Corporation Tax * Goods and Services Tax (CGST) * Customs Duty * Central Excise Duty (phased out with GST)
State Governments	* Value Added Tax (VAT) (replaced by GST for most goods and services) * State Excise Duty * Professional Tax * Land Revenue * Stamp Duty * Income tax on agricultural income (rare)
Local Municipal Bodies	* Property Tax * Octroi (mostly abolished) * Entertainment Tax (varies by state) * Local service taxes

 

Key Components:

• Direct Taxes: Income tax, corporate tax, wealth tax (not very common).
• Indirect Taxes: Goods and Services Tax (GST), customs duty, excise duty (mostly replaced by GST), VAT (mostly replaced by GST), sales tax (varies by state).

GST (Goods and Services Tax): Introduced in 2017, GST is a major reform that applies a single tax on the supply of goods and services across the country. It has replaced a multitude of indirect taxes, simplifying the tax system. GST has three components:

• CGST: Central Goods and Services Tax (collected by central government)
• SGST: State Goods and Services Tax (collected by state government)
• IGST: Integrated Goods and Services Tax (levied on inter-state transactions, collected by central government)

Net direct tax collections had stood at Rs 16.64 lakh crore in the preceding financial year 2022-23. Refunds stood at Rs 3.79 lakh crore in FY24, an increase of 22.74 per cent over the refunds of Rs 3.09 lakh crore issued in FY23 Income tax collections continued to be higher than corporate tax collections. Gross corporate tax collection (provisional) in FY24 was Rs 11.32 lakh crore, a growth of 13.06 per cent over Rs 10 lakh crore collected in the preceding year, while the net corporate tax collection stood at Rs 9.11 lakh crore, up 10.26 per cent from Rs 8.26 lakh crore in the previous financial year

 

6. What is the net direct tax?

 

"Net direct tax" typically refers to the total amount of direct taxes collected by a government after accounting for any refunds or rebates.

To calculate the net direct tax, you would start with the gross direct tax collections, which is the total amount of direct taxes collected from individuals and entities. Then, any refunds or rebates issued to taxpayers would be subtracted from the gross collections to arrive at the net direct tax.

The net direct tax collection is an important indicator of a government's revenue from direct taxes and its effectiveness in tax administration. It reflects the actual amount of revenue that the government receives from direct taxes after adjusting for any refunds or adjustments made to taxpayers

7. Major tax reforms in India

 

India has undergone several major tax reforms over the years to simplify the tax structure, improve compliance, and boost economic growth.

Some of the significant tax reforms in India include:

• Goods and Services Tax (GST): One of the most significant tax reforms in India, GST was introduced on July 1, 2017, replacing a complex system of indirect taxes including VAT, service tax, excise duty, and others. GST is a destination-based tax levied on the supply of goods and services, aimed at creating a unified national market, eliminating cascading effects of taxes, and streamlining tax administration.

• Direct Tax Code (DTC): The Direct Tax Code was proposed to replace the existing Income Tax Act, 1961, with a simplified, modernized, and taxpayer-friendly direct tax regime. Although the DTC has not been implemented in its entirety, certain provisions and reforms proposed in the code have been incorporated into the existing tax laws to improve efficiency and reduce litigation.

• Reduction in Corporate Tax Rates: In September 2019, the Indian government announced significant cuts in corporate tax rates to boost investment, promote economic growth, and make Indian industry globally competitive. The corporate tax rate for domestic companies was reduced from 30% to 22%, and for new manufacturing companies incorporated after October 1, 2019, the tax rate was further reduced to 15%.

• Benami Transactions (Prohibition) Act: The Benami Transactions (Prohibition) Act was enacted in 1988 to prohibit benami transactions and provide for confiscation of benami properties. In 2016, the government amended the Act to make it more stringent and effective in curbing black money and undisclosed income.

• Demonetization: In November 2016, the Indian government announced the demonetization of high-denomination currency notes (Rs. 500 and Rs. 1,000) to curb black money, corruption, and counterfeiting. The demonetization move was accompanied by various measures to promote digital transactions and increase tax compliance.

• Introduction of Insolvency and Bankruptcy Code (IBC): The Insolvency and Bankruptcy Code was introduced in 2016 to provide a comprehensive framework for the resolution of insolvency and bankruptcy cases in a time-bound manner. The IBC aims to promote ease of doing business, protect the interests of creditors and investors, and facilitate the resolution of stressed assets

 

 

 

For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. For Mains: GSIII: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

 

Previous Year Questions 1.Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPC CSE GS III 2019)

 

 

Source: Indianexpress

 

INDUS VALLEY CIVILISATION (IVC)

 

 

 

1. Context

 

From referring to the Harappan civilisation as the ‘Sindhu-Sarasvati’ and ‘Indus-Sarasvati’ civilisation, to multiple mentions of the ‘Sarasvati’ river, including noting its desiccation as one of the reasons for the decline of the Harappan society, to a mention of India having had a “prime meridian of its own” called the ‘Ujjayini meridian’

2. Indus Valley Civilisation (IVC)

 

The Indus Valley Civilization, also known as the Harappan Civilization, was one of the world's earliest urban civilizations. It flourished in the northwestern regions of South Asia, primarily in what is now modern-day Pakistan and northwest India, from around 3300 BCE to 1300 BCE

 

Key features of the Indus Valley Civilization include:

 

• Cities such as Harappa, Mohenjo-Daro, and Dholavira were meticulously planned, with advanced drainage systems, well-laid-out streets, and organized housing
• The civilization had extensive trade networks, evidenced by artifacts found in excavations, including seals, pottery, and ornaments. Trade routes extended to Mesopotamia, Afghanistan, and other regions
• The Indus script, found on seals and pottery, remains undeciphered, so our understanding of their language and writing system is limited
• Agriculture was the primary economic activity, with evidence of sophisticated irrigation systems and the cultivation of various crops like wheat, barley, and cotton.
• The civilization demonstrated remarkable craftsmanship in pottery, metallurgy, and city planning. They made significant advancements in bronze metallurgy, creating tools, weapons, and ornaments from copper and bronze
• Archaeological findings suggest a complex belief system with evidence of worship of various deities, including mother goddesses and male gods. The discovery of seals with animal motifs suggests a possible connection to ritual practices
• The reasons for the decline of the Indus Valley Civilization are not entirely clear, but theories include environmental changes, such as drought or flooding, invasion, or the breakdown of trade networks. The civilization gradually declined around 1900 BCE to 1300 BCE

3. Phases of IVC

 

The Indus Valley Civilization (IVC) is typically divided into three main phases: the Early Harappan Phase, the Mature Harappan Phase, and the Late Harappan Phase. These phases mark the developmental stages of the civilization from its inception to its eventual decline.

• Early Harappan Phase (3300 BCE - 2600 BCE):

  • This phase represents the initial stages of urbanization and civilization in the Indus Valley region.
  • Settlements during this phase were characterized by small villages with rudimentary forms of pottery and simple agricultural practices.
  • Evidence of early forms of craft specialization and trade begins to emerge.
  • Cities like Harappa and Mohenjo-Daro were not fully developed during this phase but show signs of early urban planning.

• Mature Harappan Phase (2600 BCE - 1900 BCE):

  • This phase marks the peak of the civilization, characterized by fully developed urban centers with advanced infrastructure.
  • Cities such as Harappa, Mohenjo-Daro, and Dholavira reached their zenith during this period, exhibiting sophisticated city planning, advanced drainage systems, and standardized brick sizes.
  • Trade networks expanded, evidenced by the presence of Indus seals and artifacts found in Mesopotamia and other distant regions.
  • The civilization reached its cultural and technological heights during this phase, with advancements in metallurgy, pottery, and arts.
  • The Indus script was in use during this period, though it remains undeciphered.

• Late Harappan Phase (1900 BCE - 1300 BCE):

  • This phase marks the decline and eventual collapse of the Indus Valley Civilization.
  • Urban centers began to decline, and many sites were abandoned or experienced a significant decrease in population.
  • There is evidence of environmental stress, such as changes in river courses, possibly leading to agricultural decline.
  • Increased evidence of conflict and invasions is noted, with some scholars suggesting that external pressures may have contributed to the civilization's decline.
  • The Indus script disappears, and many of the distinctive features of the Mature Harappan Phase, such as standardized weights and measures, also vanish

4. Origin of the civilization, town planning, craft, economy, religion, decline of the civilization

 

The origins of the Indus Valley Civilization (IVC) are still subject to debate among historians and archaeologists. However, it is generally believed that the civilization emerged in the northwestern region of the Indian subcontinent, particularly in present-day Pakistan and northwest India, around 3300 BCE. The civilization likely emerged from earlier Neolithic and Chalcolithic cultures in the region.

Town Planning:

• One of the most remarkable features of the Indus Valley Civilization was its advanced urban planning.
• Cities such as Harappa and Mohenjo-Daro were carefully laid out with grid-like street patterns, well-organized residential and industrial areas, and sophisticated drainage systems.
• Buildings were constructed using standardized bricks, indicating a high level of central authority and organization.

Crafts:

• The Indus Valley Civilization was known for its skilled craftsmanship in various fields.
• Artifacts found at excavation sites include pottery, seals, sculptures, jewelry, and tools, showcasing the civilization's mastery of materials such as pottery, metal, and stone.
• The civilization also had a sophisticated system of weights and measures, indicating a well-developed economy and trade network.

Economy:

• Agriculture was the backbone of the economy, with the cultivation of crops such as wheat, barley, rice, and cotton.
• The civilization had extensive trade networks, both within the subcontinent and with regions as far as Mesopotamia.
• Indus seals, with inscriptions yet to be deciphered, were used for trade and administrative purposes, indicating the existence of a complex economic system.

Religion:

• The religious beliefs of the Indus Valley Civilization are not fully understood due to the lack of deciphered texts or inscriptions.
• However, archaeological evidence suggests the presence of a pantheon of deities, including mother goddesses and male gods, as well as animals such as bulls and elephants.
• Ritualistic practices, possibly including animal sacrifice, are inferred from archaeological findings.

Decline of the Civilization:

• The decline of the Indus Valley Civilization remains a subject of speculation and ongoing research.
• Various factors have been proposed, including environmental changes such as climate shifts, floods, or droughts, which may have led to agricultural decline.
• Some scholars suggest internal factors such as social unrest, political instability, or the exhaustion of natural resources.
• External factors such as invasion or conquest by Indo-Aryan tribes have also been proposed as contributing to the decline of urban centers.
• The decline of the Indus Valley Civilization was a gradual process, with urban centers being gradually abandoned and the civilization eventually giving way to new cultural and political entities in the region

 

5.Major sites of Indus civilisation in Gujarat and other parts of India

 

 

In addition to the well-known sites in Pakistan such as Mohenjo-Daro and Harappa, the Indus Valley Civilization also had significant sites in Gujarat and other parts of India. Some major sites in Gujarat and other regions of India associated with the Indus Valley Civilization include:

• Lothal (Gujarat):

  • Lothal is one of the most prominent Indus Valley sites located in Gujarat, India.
  • It was a major center for trade and commerce, known for its dockyard, which is considered one of the earliest known examples of maritime architecture.
  • The site also exhibits evidence of craft production, including pottery, metalwork, and bead making.

• Dholavira (Gujarat):

  • Dholavira is another significant Indus Valley site located in Gujarat.
  • It is one of the largest and most well-preserved Harappan sites, known for its sophisticated urban planning and water management systems.
  • The site features a fortified citadel, large reservoirs, and extensive city walls.

• Kalibangan (Rajasthan):

  • Kalibangan is an Indus Valley site located in Rajasthan, India.
  • It is known for its distinctive fire altars and evidence of early ploughing techniques.
  • The site also features a fortified settlement with well-planned streets and houses.

• Rakhigarhi (Haryana):

  • Rakhigarhi is one of the largest Indus Valley sites located in Haryana, India.
  • It is believed to have been one of the largest settlements of the civilization, covering an area of over 350 hectares.
  • Excavations at Rakhigarhi have revealed evidence of urban planning, including a well-structured drainage system and residential complexes.

• Surkotada (Gujarat):

  • Surkotada is an Indus Valley site located in Gujarat, India.
  • It is known for its fortified settlement and evidence of both urban and rural life.
  • Excavations at the site have revealed evidence of craft production, including pottery and metalwork

6.Script and Religion

The script of the Indus Valley Civilization remains undeciphered, which means that scholars have not been able to fully understand or interpret the writing system used by the ancient Indus people. This script, often referred to as the Indus script, has been found on seals, pottery, and other artifacts excavated from various Indus Valley sites. Despite numerous attempts by linguists, archaeologists, and epigraphers over the years, the script remains a mystery, and its decipherment remains one of the most significant challenges in the study of the civilization.

Regarding religion, our understanding of the religious beliefs and practices of the Indus Valley Civilization is also limited due to the lack of deciphered texts or inscriptions, as well as the absence of monumental architecture or temples typically associated with later ancient civilizations.

However, archaeological evidence provides some clues about the religious aspects of the civilization:

• Iconography: Seals and terracotta figurines found at Indus Valley sites depict various animals, including bulls, elephants, rhinoceroses, and tigers, as well as human-like figures. These images suggest the presence of a diverse pantheon of deities.

• Mother Goddess: One of the most prominent motifs in Indus Valley art is that of the female deity, often referred to as the "Mother Goddess." This figure is depicted seated in a posture of reverence, suggesting her importance in religious beliefs.

• Animal Worship: The presence of animal motifs on seals and other artifacts suggests that certain animals may have held religious significance. Bulls, in particular, are depicted in various contexts and may have been objects of veneration or worship.

• Ritualistic Practices: Archaeological evidence, such as the discovery of fire altars and the presence of ritual baths in some Indus Valley sites, suggests the performance of ritualistic practices. These may have included offerings, sacrifices, or purification rituals.

• Water Symbolism: Water management systems, including wells, reservoirs, and drainage systems, were integral to the urban planning of Indus Valley cities. The significance of water in daily life and its possible religious symbolism have been proposed by scholars

7.Craft, Technology and Artefacts

 

The craft, technology, and artifacts of the Indus Valley Civilization reveal a sophisticated and advanced society with remarkable skills in various fields.

Here are some key aspects:

• Pottery: The pottery of the Indus Valley Civilization was finely made and displayed a high level of craftsmanship. It was often wheel-thrown and decorated with intricate designs, including geometric patterns, animal motifs, and plant motifs.

• Metalwork: Metalwork was another significant aspect of craft in the Indus Valley Civilization. Copper and bronze were the primary metals used, and craftsmen created a variety of objects, including tools, weapons, ornaments, and vessels. Bronze figurines and statues have also been found at excavation sites.

• Seals: Indus seals are among the most distinctive artifacts of the civilization. These seals were typically made of steatite and engraved with intricate designs, including depictions of animals, humans, and mythical creatures. They were used for various purposes, including trade, administrative, and possibly religious functions.

• Bead Making: The Indus Valley Civilization was known for its bead making, with beads crafted from materials such as stone, shell, faience, and metal. These beads were used for personal adornment, trade, and possibly religious rituals.

• Urban Planning: The technology and urban planning skills of the Indus people are evident in the layout of their cities, which featured well-planned streets, drainage systems, and standardized brick sizes. Cities like Mohenjo-Daro and Harappa are prime examples of their advanced urban planning.

• Water Management: The civilization had sophisticated water management systems, including wells, reservoirs, and drainage systems. These systems allowed for efficient storage and distribution of water, crucial for sustaining urban life in arid regions.

• Weights and Measures: The Indus Valley Civilization used standardized weights and measures, as evidenced by the discovery of precision-made weights and measuring instruments. This suggests a high level of organization in trade and commerce.

• Art and Sculpture: The civilization produced a variety of art and sculpture, including terracotta figurines, pottery, seals, and sculptures depicting human and animal figures. These artifacts provide insight into the artistic and cultural life of the Indus people

8.Trade And External Contacts

Trade and external contacts were vital components of the Indus Valley Civilization's economy and cultural exchange.

 

Here are some key aspects:

• The Indus Valley Civilization engaged in extensive trade networks, both within the Indian subcontinent and with regions as far as Mesopotamia (modern-day Iraq), Afghanistan, Oman, and the Persian Gulf. Archaeological evidence, such as the discovery of Indus seals and artifacts in distant regions, indicates the extent of these trade connections
• Indus seals, typically made of steatite, were used as markers of ownership and for administrative purposes. These seals often depicted animals, mythical creatures, and inscriptions in the Indus script. Many of these seals have been found in Mesopotamia, suggesting the presence of trade links between the two regions
• The Indus Valley Civilization imported and exported a wide range of goods. Imports included precious stones (such as lapis lazuli), metals (such as copper and tin), wood, and luxury items. Exports included pottery, textiles, beads, jewelry, and possibly agricultural products
• Excavations at sites such as Shortugai in northern Afghanistan and Lothal in Gujarat, India, have revealed the presence of Harappan trade colonies or outposts. These settlements served as centers for trade and commerce, facilitating the exchange of goods between the Indus Valley and neighboring regions
• The presence of a well-developed dockyard at Lothal suggests that maritime trade played a significant role in the Indus Valley Civilization's economy. Ships from Lothal likely sailed to the Arabian Sea and beyond, facilitating trade with coastal and overseas regions
• Trade contacts also facilitated cultural exchange between the Indus Valley Civilization and other regions. The presence of Mesopotamian artifacts in the Indus Valley and vice versa indicates the exchange of ideas, technologies, and artistic motifs
• The Indus Valley Civilization's ability to engage in long-distance trade indicates a level of economic organization and navigational skill. This trade not only contributed to the economy but also enriched the cultural diversity of the region

9.The End of Indus Valley Civilization

The decline and eventual end of the Indus Valley Civilization remain subjects of scholarly debate and ongoing research.

While the exact causes are not fully understood, several factors have been proposed:

• Environmental Changes: Some scholars suggest that environmental factors, such as changes in the course of rivers, climate shifts, droughts, or floods, may have contributed to the decline of the civilization. These environmental changes could have disrupted agricultural practices and led to food shortages and population displacement.

• Aryan Migration and Invasion: The arrival of Indo-Aryan tribes from Central Asia into the Indian subcontinent around the end of the Indus Valley Civilization is considered by some scholars as a possible factor in its decline. These migrations and invasions might have resulted in conflicts, disruptions to trade networks, and the collapse of urban centers.

• Internal Decline: Internal factors such as social unrest, political instability, or the breakdown of centralized authority could have contributed to the decline of the civilization. Some evidence suggests the possibility of social stratification or the emergence of elites, which may have led to tensions within society.

• Economic Factors: Economic factors, such as the exhaustion of natural resources, trade disruptions, or the decline of urban centers as economic hubs, may have played a role in the civilization's decline. Changes in trade routes or the emergence of new economic centers could have marginalized the Indus Valley cities.

• Cultural Changes: Shifts in cultural practices, beliefs, or social structures within the Indus Valley Civilization could have contributed to its decline. The spread of new religious or ideological movements, changes in trade partners, or the integration of different cultural groups may have altered the social fabric of society

For Prelims: History of India For Mains: GS-I: Art and Culture

 

 

Source: Indianexpress

 

SEMICONDUCTOR CHIP 

 

 

 

 

1. Context

 

That Taiwan and India ought to be strategic partners, especially in chip fabrication, is a steady refrain in Taipei City and New Delhi. Taiwan is an undisputed world leader and India is keen to make late inroads in this domain. On the ground, however, the partnership faces challenges even as there’s a shared sense of strategic alignment.

2. About Semiconductor Chips and their Manufacturing Process

• A semiconductor chip, also known simply as a chip or integrated circuit, is a crucial component in modern electronics.
• Semiconductors possess properties that lie between those of conductors, which readily conduct electricity, and insulators, which do not.
• In their purest form, semiconductors exhibit minimal electrical conductivity. However, this conductivity can be modified by introducing small amounts of specific substances known as "dopants."
• The manufacturing process of semiconductor chips involves intricate techniques aimed at precisely altering the electrical properties of semiconductor materials.
• By carefully injecting specific parts of a pure semiconductor with dopants, complex circuits can be effectively "printed" onto the semiconductor substrate.This process can be likened to creating detailed artwork on paper or a wall using stencils and spray paints of various colours.
• In the semiconductor industry, the stencils are referred to as "masks," while the dopants serve as the equivalent of paint. Through the meticulous application of masks and dopants, semiconductor manufacturers can fabricate intricate circuitry essential for the functioning of electronic devices.

 

3. About Transistors

• A transistor stands as one of the earliest electronic components crafted using semiconductor materials, showcasing remarkable versatility in its applications.
• In its most prevalent form, a transistor operates as an electronic switch, capable of controlling the flow of electrical current.
• Within a typical semiconductor chip, millions or even billions of interconnected transistors collaborate to execute various logical and computational tasks.
• Beyond its role as a switch, a transistor can also serve as an amplifier, enhancing weak signals such as those received by cell phones.
• Moreover, transistors play a crucial role in circuits involved in generating and processing high-frequency signals, essential for wireless communication technologies.
• Today, these diverse functionalities of transistors are routinely integrated into a single semiconductor chip, exemplified by the WiFi chip found in mobile devices.
• The invention of the transistor demonstrated how a solitary device could be fashioned from a semiconductor material, marking a significant advancement in electronics.
• Subsequently, the ability to "print" multiple devices onto a single semiconductor substrate to construct entire circuits represented the next leap forward.
• Both of these breakthroughs laid the groundwork for the semiconductor revolution and have been duly recognized by Nobel Prizes, awarded in 1956 and 2000, respectively.

 

4. Fabrication Technology in Semiconductor Manufacturing

• Fabrication technology in semiconductor manufacturing refers to the processes and techniques used to create semiconductor chips with increasingly advanced features and capabilities.
• Over the past six decades since the inception of semiconductor chips, technological advancements have propelled the industry forward at a relentless pace, introducing newer manufacturing technologies at regular intervals.
• One significant aspect of fabrication technology is the level of miniaturization achieved in semiconductor chips.
• This advancement is akin to the analogy of using stencils to etch smaller and more intricate patterns.
• The miniaturization of semiconductor components, such as transistors, has increased by orders of magnitude. This progress is accompanied by impressive gains in the switching capability of transistors, enabling faster switching speeds and lower power consumption.
• Manufacturing technologies are often denoted by labels like '45nm,' '28nm,' and '16nm,' with 'nm' representing nanometers, an extremely small unit of length equal to one billionth of a meter.
• These numbers signify the level of miniaturization achievable using a particular technology, with smaller numbers indicating finer features.
• While traditionally electronic circuits have been laid out flat on semiconductor substrates, researchers are increasingly exploring the use of the third dimension (height) to enhance performance.
• As the dimensions of individual transistors decrease, increasing their height can help ensure reliable operation.
• Additionally, stacking entire circuits on top of one another is another approach to further reduce semiconductor chip sizes and enhance functionality.

5. Wafer in Semiconductor Manufacturing

• In the realm of semiconductor manufacturing, a wafer is akin to a crucial canvas on which semiconductor chips are created.
• Drawing an analogy to the production of postage stamps, semiconductor chips are crafted on a wafer much like stamps are printed on a sheet of paper and then individually cut out.
• Typically, an array of chips, numbering around 300-400, is printed on a circular piece of semiconductor material, referred to as a wafer within the industry. Subsequently, the wafer is diced into individual chips.
• The size of the wafer plays a pivotal role in the efficiency and cost-effectiveness of chip production.
• Larger wafer sizes facilitate the printing of more chips on a single wafer, thereby accelerating chip production while simultaneously reducing costs.
• Over time, wafer sizes utilized in the industry have steadily increased. Presently, the state-of-the-art standard is a 300mm wafer, roughly equivalent to 12 inches in diameter.
• Ongoing efforts aim to transition towards utilizing 450mm wafer sizes. While transitioning to larger wafer sizes poses technical challenges and capital expenses, it ultimately proves to be economically advantageous in the long run.
• Following the dicing of the wafer into individual chips, each chip undergoes packaging wherein it is encased in a protective covering.
• Furthermore, intricate wiring is meticulously routed from the device to the periphery of the package. These wires serve various functions, including power supply and signal transmission.
• Subsequently, each chip undergoes rigorous testing procedures, including functionality verification and stress testing, to ensure reliability throughout its operational lifespan. These assembly and test processes are carried out in specialized assembly and test plants.

6. India's Semiconductor Ecosystem

• India's semiconductor ecosystem has witnessed significant growth, particularly in chip design, since the 1990s.
• Leveraging the capabilities of computer-aided design (CAD), semiconductor chips can be designed entirely using software tools. This process involves specifying the chip's functionality, translating it into electronic circuits, validating the circuits, and optimizing for factors such as speed, power consumption, and size all achievable by skilled engineers working at their desktops.
• The final chip design is abstracted into a file format and sent to a fabrication plant for manufacturing, resembling the process of creating and publishing a graphic novel entirely on a laptop.
• India's venture into semiconductor manufacturing stands to benefit from its well-established ecosystem for chip design, driven by a steady influx of electronics and computer engineers.
• Given that semiconductor manufacturing is inherently interdisciplinary, there are opportunities for professionals from various fields to contribute meaningfully to this industry.
• This includes process and control engineers, data scientists, material scientists, physicists, and chemical engineers, who can collaborate to advance semiconductor manufacturing capabilities in the country.

 

7. The Way Forward

 

By implementing the comprehensive measures, India can not only achieve self-reliance in chip production but also emerge as a major player in the global semiconductor market. This will not only bolster India's technological prowess but also contribute significantly to its economic growth and national security.

 

 

For Prelims: Semiconductor, Transistors, Fabrication Technology   For Mains:  1. Discuss the recent global chip shortage and its implications for India's semiconductor industry. What steps has India taken to enhance its domestic chip manufacturing capabilities? (250 Words)

 

Previous Year Questions   1. Which of the following fabrication techniques is ideally suited for digital ICs? (KVS TGT WET 2017)   A. Monolithic        B. Thin film      C. Hybrid              D. Thin film and hybrid   Answer: A

 

Source: The Hindu

 

NATIONAL CLEAN AIR PROGRAM (NCAP)

 

 

1. Context 

 

Road dust mitigation works undertaken to reduce particulate matter 10 (PM10) pollution is draining a lion’s share — 64% — of funds under the National Clean Air Programme (NCAP), said a new study by Centre for Science and Environment (CSE) while recommending a shift of focus on curbing the finer, more lethal PM2.5 pollution

2. Abour National Clean Air Programme (NCAP)

 

The National Clean Air Programme (NCAP) was initiated by the Indian government to address the alarming levels of atmospheric pollution, particularly the concentration of Particulate Matter (PM). Under NCAP, cities in India exceeding annual PM levels are required to develop and execute Clean Air Action Plans (CAAPs) annually. To support this initiative, the Ministry of Environment, Forest, and Climate Change has allocated ₹10,422.73 crore.

Challenges in NCAP Implementation

Despite the proactive submission of CAAPs by most cities, the implementation of NCAP has faced inconsistencies. According to the Ministry, only 60% of the allocated funds have been utilized on average, with 27% of cities spending less than 30% of their designated budgets. Notably, cities like Visakhapatnam and Bengaluru have spent minimal percentages of their NCAP funds, hindering progress.

Barriers to Implementation

• Delays in implementation primarily stem from bureaucratic hurdles and a lack of standard operating procedures.
• Approval delays from competent authorities, such as technical specifications for tendering processes and procurement of necessary equipment like mechanical sweepers and electric buses, have been significant impediments.
• Additionally, the absence of well-defined timelines and time-consuming tasks further exacerbate delays.
• Overcoming these challenges requires a systematic approach integrating Emissions Inventory (EI), Air Quality (AQ) modelling, and Source Apportionment (SA).
• Recent findings questioning the efficacy of outdoor smog towers have also fueled doubts among decision-makers, necessitating a comprehensive reevaluation of proposed mitigation measures.

3. Role of Scientific Tools in Pollution Management

 

Scientific tools play a crucial role in addressing air pollution challenges, particularly in identifying and understanding its origins.

• EI studies provide valuable insights into local pollution sources and their contributions, enabling experts to forecast future emissions and shape targeted pollution control strategies.
• Despite their usefulness, EI studies have limitations, especially in assessing the impact of transboundary pollution sources, such as stubble burning outside Delhi, on local air quality.
• SA studies offer detailed analyses of contributions from various pollution sources, including distant ones.
• However, they lack predictive capabilities and require substantial resources for chemical analysis.
• Additionally, SA studies struggle to differentiate between pollution origins with similar chemical signatures, such as emissions from diesel trucks nearby versus those further away.
• AQ modelling bridges gaps left by EI and SA studies by informing our understanding of pollution dispersion, including from distant sources.
• By simulating the movement of pollutants in the atmosphere, AQ modelling enhances our ability to assess and mitigate air pollution's impacts.

 

4. Utilization of Scientific Data in Air Pollution Management

 

• Cities ideally utilize Emissions Inventory (EI) and Source Apportionment (SA) data to identify air pollutants and devise targeted mitigation measures for each polluting activity.
• However, according to the Portal for Regulation of Air Pollution in Non-Attainment Cities, only 37% of cities have completed EI and SA studies, leaving 63% without a clear understanding of their air pollution sources.
• This lack of data raises concerns about the effectiveness of Clean Air Action Plans (CAAPs), as cities may not accurately gauge the emission reduction potential of proposed measures.
• To address this, cities must establish proper yearly targets based on their potential and infrastructure capabilities.

Challenges and Considerations

• The reliance of the National Clean Air Programme (NCAP) on concentration data, which measures population exposure to pollution, adds complexity.
• Pollution from high-emitting industries and sources beyond city limits, transported into urban areas by wind, complicates urban air quality management.
• Additionally, many existing control measures primarily target primary PM emissions, overlooking their secondary precursors.
• There's a need for a shift towards comprehensive strategies addressing both primary and secondary pollutants.
• Furthermore, while NCAP aims to establish infrastructure for air quality forecasting, only a few cities like Delhi, Pune, Mumbai, and Ahmedabad have implemented decision-support systems.
• Implementing such systems across cities is crucial for timely and effective pollution management.

 

5. Key Factors for NCAP Success

 

The success of the National Clean Air Programme (NCAP) relies on several critical elements beyond just data and models.

• Efficient implementation on the ground is paramount. To achieve this, implementation agencies must streamline bureaucratic processes by adopting shared, standardized technical evaluations. This will expedite the execution of NCAP initiatives and ensure timely action on pollution reduction measures.
• Given that NCAP funding is tied to cities' performance in reducing annual average PM concentrations, proactive budgeting and meticulous time management are essential. Initial plans should encompass thorough assessments of technical feasibility, budget requirements, and timeframes to facilitate successful execution.
• NCAP's vision for cleaner air in India necessitates a multifaceted approach. Success requires integrating rigorous scientific studies, strategic allocation of funds, and prompt, efficient implementation of mitigation measures.

 

6. The Way Forward

 

The successful implementation of the NCAP requires concerted efforts to address challenges, utilize scientific data effectively, and adopt a comprehensive approach towards pollution management. By addressing these key factors, India can make significant progress towards achieving cleaner air for its citizens.

 

For Prelims: National Clean Air Programme, Air Pollution, Particulate Matter, Clean Air Action Plans For Mains:  1. What are the challenges and opportunities presented by the National Clean Air Programme (NCAP) for improving air quality in Indian cities? Discuss the measures required to overcome implementation hurdles and ensure the effective management of air pollution. (250 Words)

 

 

Previous Year Questions   1. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (UPSC 2016) Carbon dioxide Carbon monoxide Nitrogen dioxide Sulfur dioxide Methane Select the correct answer using the code given below: A. 1, 2 and 3 only      B. 2, 3 and 4 only   C. 1, 4 and 5 only     D. 1, 2, 3, 4 and 5 2. Which of the following are the reasons/factors for exposure to benzene pollution? (UPSC 2020) Automobile exhaust Tobacco smoke Wood burning Using varnished wooden furniture Using products made of polyurethane Select the correct answer using the code given below: A. 1, 2 and 3 only  B. 2 and 4 only   C. 1, 3 and 4 only     D. 1, 2, 3, 4 and 5   3. What is the ‘Greenhouse Gas Protocol’? (UPSC 2016) (a) It is an international accounting tool for government and business leaders to understand, quantify and manage greenhouse gas emissions (b) It is an initiative of the United Nations to offer financial incentives to developing countries to reduce greenhouse gas emissions and to adopt eco-friendly technologies. (c) It is an inter-governmental agreement ratified by all the member countries of the United Nations to reduce greenhouse gas emissions to specified levels by the year 2022 (d) It is one of the multilateral REDD+ initiatives hosted by the World Bank 4. Photochemical smog is a resultant of the reaction among (UPSC 2013) (a) NO2, O3 and peroxyacetyl nitrate in the presence of sunlight (b) CO, O2 and peroxyacetyl nitrate in the presence of sunlight (c) CO, CO2 and NO2 at low temperature (d) high concentration of NO2 O3 and CO in the evening   5. Acid rain is caused by the pollution of the environment (UPSC 2013, 2022) (a) Carbon Dioxide and Nitrogen (b) Carbon Monoxide and Carbon Dioxide (c) Ozone and Carbon Dioxide (d) Nitrous Oxide and Sulphur Dioxide 6. Biological Oxygen Demand (BOD) is a standard criterion for (UPSC 2017) (a) Measuring oxygen level in blood (b) Computing oxygen levels in forest ecosystems (c) Pollution assay in aquatic ecosystem (d) Assessing oxygen levels in high-altitude regions   7. The Ministry of Environment, Forest and Climate Change recently published the draft Environment Impact Assessment (EIA) Notification, in 2020. Which of the following statements is correct about EIA? (Punjab Civil Service 2020) 1. It predicts the effect of a proposed industrial/infrastructural project on the environment. 2. It prevents the proposed activity/project from being approved without proper oversight or taking adverse consequences into account. 3. It compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits. 4. As per the new notification, Coal and non-Coal mineral prospecting and solar photovoltaic projects do not need prior environmental clearance. Select the correct answer using the code given below: A. Only 1 and 2 B. Only 2, 3 and 4 C. Only 1, 2 and 3 D. Only 1, 2 and 4     8.  Headquarters of the World Meteorological Organization is located in (NDA 2017) A. Washington        B. Geneva         C. Moscow         D.  London   9. With reference to the 'Global Climate Change Alliance', which of the following statements is/are correct? (UPSC 2017) 1. It is an initiative of the European Union. 2. It provides technical and financial support to targeted developing countries to integrate climate change into their development policies and budgets. 3. It is coordinated by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) Select the correct answer using the code given below: A. 1 and 2 only            B. 3 only           C. 2 and 3 only              D. 1, 2 and 3     10. The IPCC is the United Nations body for assessing the science related to climate change. IPCC stands for: (RRB NTPC CBT 2 2022) A. Intergovernmental Provision on Climate Change B. International Panel on Climate Change C. International Provision on Climate Change D. Intergovernmental Panel on Climate Change   11. Comprehension (SSC CHSL 2020)   Direction: In the following passage some words have been deleted. Fill in the blanks with the help of the alternatives given. Select the most appropriate option for each blank. Forest fire always (1) ______ by one of two reasons-naturally caused or human-caused. Natural fire is generally (2) ______ by lightning, with a very small percentage (3) ______ by spontaneous combustion of dry fuel such as sawdust and leaves. (4) ______, human-caused fire can happen (5) ______ any number of reasons. Select the most appropriate option for blank No. 1. A. takes up    B. happens    C. causes    D. creates   12. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020)  A. long-term damage done by a tonne of CO2 emission in a given year. B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels. C. efforts put in by a climate refugee to adapt to live in a new place. D. contribution of an individual person to the carbon footprint on the planet Earth.     13. The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere, because it absorbs (UPSC 2012) A. the water vapour of the air and retains its heat B. the ultraviolet part of the solar radiation C. all the solar radiations D. the infrared part of the solar radiation   14. As per the World Health Organisation (WHO) recommendation of a balanced diet, to avoid unhealthy weight gain, total fat should NOT exceed _______ of total energy intake. (UPSSSC Mandi Inspector 2019) A. 20%         B.  30%        C. 10%          D. 40%     15. What is the role of ultraviolet (UV) radiation in the water purification systems? (UPSC 2012) 1. It inactivates/kills the harmful microorganisms in water. 2. It removes all the undesirable odours from the water. 3. It quickens the sedimentation of solid particles, removes turbidity and improves the clarity of water. Which of the statements given above is/are correct? A. 1 only        B. 2 and 3 only          C. 1 and 3 only         D. 1, 2 and 3     16. Which of the following ultraviolet rays is more dangerous? (UPTET 2017) A. UV-A        B. UV-B          C.  UV-C          D.  None of the above     17. Consider the following statements: (UPSC 2019)  1. Agricultural soils release nitrogen oxides into environment. 2. Cattle release ammonia into environment. 3. Poultry industry releases reactive nitrogen compounds into environment. Which of the statements given above is/are correct? A. 1 and 3 only         B. 2 and 3 only          C. 2 only          D.  1, 2 and 3   18. Which of the following is a VOC? (MP Vyapam 2022)  A. Toulene          B. Water            C. Carbon dioxide          D. Carbon monoxide     19. Volatile Organic Compounds (VOCs) are of great concern because (UGC NET  Environmental Science  2020) A. Once such compounds are in the vapour state, they are difficult to control in the environment. B. Most of them are ozone-depleting substances C. They contribute to a general increase in reactive hydrocarbons in the atmosphere. D. They are less soluble in water.   Answers: 1-B, 2-A, 3-A, 4-A, 5-D, 6-C, 7-D, 8-B, 9-A, 10-D, 11-B, 12-A, 13-D, 14-B, 15-A, 16-C, 17-D, 18-A, 19-C

 

Source: The Hindu