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DAILY CURRENT AFFAIRS, 05 AUGUST 2024

DRUG-RESISTANT TB

1. Context 

The first-of-its-kind TB prevalence cross-sectional survey was carried out among individuals aged older than 15 years across Tamil Nadu from February 2021 to July 2022

2. About drugresistant TB

  • As of 2017, India accounted for around one-fourth of the world's burden of multidrug-resistant (MDR) TB and of extensively drug-resistant (XDR) TB and extensively drug-resistant (XDR) TB.
  • MDR TB resists treatment by at least two frontline drugs in TB treatment, isoniazid and rifampicin.
  • XDR TB resists these two drugs, fluoroquinolones, and any second-line injectable drug.
    XDR TB is rarer than MDR TB there were 1, 24, 000 cases of the latter in India (2021) versus 2, 650 cases of the former (2017).
  • TB incidence in India has been on the decline, but MDR TB and XDR TB endanger initiatives to locally eradicate the disease.
  • In the first two years of the pandemic, there were reports that TB treatment was hit by disrupted supply chains, availability of healthcare workers for non-pandemic work, and access to drug distribution centres.
  • A peer-reviewed 2020 study found that the incidence of MDR TB was "strongly correlated with treatment failure and spread through contact and not to treatment compliance".

3. Treatment for drug-resistant TB

  • TB is an infection of the bacterium Mycobacterium tuberculosis in the lungs, but often in other organs as well.
  • It can be treated by strictly adhering to the doses and frequencies of drugs prescribed by a physician.
  • Deviations from this schedule can lead the bacteria to become drug-resistant.
  • Yet they happen because the drugs often have side effects that diminish the quality of life and or because patients haven't been afforded access to the requisite drugs on time.
  • Drugresistant TB is harder to treat. One important option for those diagnosed with pulmonary MDR TB is bedaquiline.
  • In 2018, the World Health Organisation replaced two injectable drugs for MDR TB with an oral regimen that included bedaquiline.
  • At this time, bedaquiline had not completed phase III Trials.
  • The recommendation was based on smaller studies, outcomes in TB elimination programmes worldwide, the difficulty of treating MDR TB and close monitoring of patients receiving the drug.

4. Effectiveness of Bedaquiline

  • Typically, bedaquiline needs to be taken for six months: at a higher dose in the first two weeks followed by a lower dosage for 22 weeks.
  • This period is shorter than other treatment routines for pulmonary MDR TB, which can last 924 months.
  • One phase II Clinical trial observed that culture conversion (turning a patient's sputum culture from positive to negative) "at 24 weeks was durable and associated with a high likelihood of response at 120 weeks", due to bedaquiline.
  • Unlike Second-line treatment options that are injected and can have severe side effects, like hearing loss, bedaquiline is available as tablets and is less harmful, although it has potential side effects of its own.
  • Studies until 2018 found that it could be toxic to the heart and the liver. This is part of why it is recommended only as a treatment of last resort.
  • India's Health Ministry has guidelines for bedaquiline use as part of the Programmatic Management of MDR TB under the National TB Elimination Programme.
  • The WHO's decision revitalised a debate about the ethics of making a much-needed but insufficiently tested drug available quickly versus lowering the safety threshold for pharmaceutical companies producing drugs for desperate patients.

5. Reasons for the rejection of the Patent application

J&J's patent application was for a fumarate salt of a compound to produce bedaquiline tablets.
Two groups opposed the patent:
1. Network of Maharashtra people living with HIV and
2. Nandita Venkatesan and Phumeza Tisile, both TB survivors, are supported by Medecins Sans Frontieres.
  • Both groups argued that J&J's method to produce a "Solid pharmaceutical composition" of bedaquiline is "obvious, known in the art" and doesn't require an "inventive step".
  • According to the Indian Patent Act 1970 Section 2 (1) (ja), an "inventive step" is an invention that is "not obvious to a person skilled in the art".
  • The latter also contended that the current application drew significantly from a previous patent, WO 2004/011436, which discussed a similar compound on which bedaquiline is based and whose priority date (2002) well preceded the new application.
  • The Patent Office rejected the application on these and other grounds, including Sections 3d and 3e of the Act.
  • These pertain to the "mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance" and "a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof", respectively, which are not patentable.

6. Significance of the rejection 

  • India has the largest population of people living with drug-resistant TB.
  • J&J's patent on bedaquiline meant the drug cost $400 (revised to $340 in 2020) per person, plus the cost of other drugs.
  • The rejection is expected to lower the cost of bedaquiline by up to 80 per cent.
  • So far, the Indian government has directly procured and distributed the drug through Statelevel TB programmes.
  • After July 2023, manufacturers of generic drugs such as Lupin will be able to produce generic versions of bedaquiline.
  • The argument based on WO 2004/011436 is also relevant to "evergreening a strategy where a patent owner continuously extends their rights and or applies multiple patents for the same entity. Indian law disallows this.

For Prelims & Mains

For Prelims: TB, Johnson & Johnson, bedaquiline, XDR TB, MDR TB, World Health Organisation, Indian Patent Act 1970, 
For Mains:
1. How will Drug Resistant TB help the treatment of multi­drug­resistant tuberculosis? What are the costs and production implications?  What is India’s target year to eliminate TB? (250 Words)
 

Previous Year Questions

Read the following passages and answer the question, your answers to these items should be based on the passages only.

A majority of the TB infected in India are poor and lack sufficient nutrition, suitable housing and have little understanding of prevention. TB then devastates families, makes the poor poorer, particularly affects women and children, and leads to ostracisation and loss of employment. The truth is that even if TB does not kill them, hunger and poverty will. Another truth is that deep-seated stigma, lack of counselling, expensive treatment and lack of adequate support from providers and family, coupled with torturous side-effects demotivate patients to continue treatment - with disastrous health consequences.

Which one of the following is the most logical, rational and crucial message conveyed by the above passage? (UPSC 2019)

  1. TB is not a curable disease in Indian circumstances.
  2. Curing TB requires more than diagnosis and medical treatment.
  3. Government's surveillance mechanism is deficient, and poor people have no access of treatment.
  4. India will be free from diseases like TB only when its poverty alleviation programmes are effectively and successfully implemented.

Answer: 2

Curing TB requires more than diagnosis and medical treatment.
 
Source: The Hindu
 

FOREIGN CONTRIBUTION REGULATION ACT (FCRA)

 

1. Context

Four years after the then U.S. President Donald Trump signed the Gandhi-King Scholarly Exchange Initiative Act, U.S. and Indian officials are trying to overcome the hurdles posed by the Foreign Contribution Regulation Act (FCRA), which has held up funding for the approximately $40 million dollar (₹335 crore) initiative and, in particular, a Gandhi-King Development Foundation

2. Foreign Contribution Regulation Act

  • The law sought to regulate foreign donations to individuals and associations so that they functioned "in a manner consistent with the values of a sovereign democratic republic". 
  • Foreign funding in India is regulated under the FCRA act. Individuals are permitted to accept foreign contributions without the permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
  • It is implemented by the Ministry of Home Affairs. The FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India's affairs by pumping money into the country through independent organizations. These concerns were, in fact, even older- they had been expressed in Parliament as early as 1969.

3. Provisions of the Act

  • The FCRA requires every person or NGO wishing to receive foreign donations to be registered under the act, to open a bank account for the receipt of foreign funds in the statute Bank of India, Delhi, and to utilize those funds only for which they have been received, and as stipulated in the act.
  •  They are also required to file annual returns, and they must not transfer the funds to another NGO.
  • The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspapers and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, and organizations of a political nature.

4. Key Highlights of the 2020 Amendment

  • It bars public servants from receiving foreign contributions. It prohibits the transfer of foreign contributions to any other person.
  • Aadhar number is mandatory for all office bearers, directors, or key functionaries of a person receiving foreign contributions, as an identification document.
  • The foreign contribution must be received only in an account designated by the bank as an FCRA account in such branches of the State Bank of India, New Delhi.
  • No funds other than foreign contributions should be received or deposited in this account.
  • It allowed the government to restrict the usage of unutilized foreign contributions. This may be done if, based on an inquiry the government believes that such a person has contravened provisions of the FCRA.
  • While NGOs earlier could use up to 50 percent of funds for administrative use, the new amendment restricted this use to 20 percent.

5. Registration under FCRA

  • NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation. FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programs.
  • Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant and accordingly processes the application. The MHA is required to approve or reject the application within 90 days-failing which is expected to inform the NGO of the reasons for the same.
  • Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.

6. Cancellation of Approval

The government reserves the right to cancel the FCRA registration of any NGO if it finds it to violate the Act. Registration can be cancelled for a range of reasons including, if "in the opinion of the Central Government, the public interest must cancel the certificate". Once the registration of an NGO is canceled, it is not eligible for re-registration for three years. All orders of the government can be challenged in the High court.

For Prlims& Mains

For Prelims: FCRA, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, NGO, Ministry of Home Affairs (MHA).

For Mains: 1. What is the Foreign contribution regulation act and discuss the new restrictions introduced by the Foreign Contribution (Regulation) Amendment Act, 2020.

 

 

Previous Year Questions

 

1.Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976. (Please refer GS-II Paper, 2015)

 

Source: The Indian Express

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)

1. Context

Going against one of the key objectives of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), only ₹90,000 was released by various States in 2023-24 as “unemployment allowance”, which is provided to workers in case of unmet work demand. The corresponding figure was ₹7.8 lakh in 2022-23
 

2. About the National Level Monitoring (NLM) report

  • The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
  • The report is based on field visits and interviews with stakeholders at the grassroots level.
  • The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
  • The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.

The NLM report typically identifies the following areas:

  • The coverage of rural development programs
  • The quality of implementation of rural development programs
  • The impact of rural development programs on the lives of rural people

The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.

 

3. The findings of the NLM report

  • In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
  • In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
  • In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
  • The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
  • The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
 

4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.

4.1. Mandate and Goals

  • The mandate of MGNREGA is to provide employment and ensure food security for rural households.
  • The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
  • The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity. 

4.2. Core Objectives 

  •  The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
  • The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
  • MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
  • The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.

4.3. Key Stakeholders 

  • Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
  • Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
  • The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
  • The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
  • Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.

4.4. Role of Gram Sabha and Gram Panchayat

  • The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
  • The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.

4.5. Issues with MGNREGA

  •  Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
  •  There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
  • Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
  • Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
  • Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
  • Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.

5. Conclusion

MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.

 

For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G), 
For Mains: 
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
 
 
 
Previous Year Questions
 
Prelims

1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011)

(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household

Answer: D

2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)

  1. Deprivation of education, health, assets and services at household level
  2. Purchasing power parity at national level
  3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

(a) 1 only             (b) 2 and 3 only         (c) 1 and 3 only             (d) 1, 2 and 3

Answer: A

3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

(a) 1 and 2 only         (b) 2 only                     (c) 1 and 3 only                (d) 1, 2 and 3

Answer: C

4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)

  1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
  2. By strengthening ‘self-help groups’ and providing skill development
  3. By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipment free of cost to farmers

Select the correct answer using the codes given below:

(a) 1 and 2 only          (b) 2 only                        (c) 1 and 3 only              (d) 1, 2 and 3

Answer: B 

5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017)

A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
 
Answer: A
 
Mains
 
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
 
Source: indianexpress
 

MICRO SMALL MEDIUM ENTERPRISES (MSME)

 
 
 
1. Context
The Supreme Court has held that banks or creditors are required to identify the incipient stress in the accounts of micro, small, and medium enterprises (MSMEs) before their accounts turn into non-performing assets
 
2. Definition of 'MSME'
Micro, Small, and Medium Enterprises (MSMEs) are businesses that are characterized by their relatively small size in terms of employees, assets, and revenue. These enterprises play a crucial role in economies around the world, contributing to employment generation, economic growth, and innovation. The definitions of MSMEs can vary from country to country, but there are general guidelines provided by international organizations like the World Bank and the United Nations.

The definition of MSME varies from country to country. In India, an MSME is defined as a business with:

  • Micro enterprise: Up to 10 employees and an investment of up to INR 1 crore (approximately USD 130,000)
  • Small enterprise: Up to 50 employees and an investment of up to INR 10 crore (approximately USD 1.3 million)
  • Medium enterprise: Up to 200 employees and an investment of up to INR 50 crore (approximately USD 6.5 million)
3. Importance of MSME's

The importance of MSMEs in an economy includes:

  • Employment Generation: MSMEs are significant contributors to employment, especially in economies with limited opportunities for large-scale industrial employment.

  • Local Economic Development: MSMEs often operate at a local level, contributing to the development of local communities and economies.

  • Innovation and Entrepreneurship: Many innovative ideas and entrepreneurial ventures start as MSMEs. They have the flexibility to adapt quickly to changing market demands and experiment with new business models.

  • Diversity and Resilience: A diverse ecosystem of MSMEs can contribute to a more resilient economy by reducing dependence on a few large corporations.

  • Contributions to GDP: The combined contributions of MSMEs to a country's Gross Domestic Product (GDP) can be significant, even if individual businesses are relatively small.

4. New Criteria for MSME's

The new criteria for the classification of micro, small and medium enterprises (MSMEs) in India was notified by the Ministry of Micro, Small and Medium Enterprises (MSME) on June 1, 2020. The new criteria are based on the investment in plant and machinery or equipment and the annual turnover of the enterprise.

The following are the new criteria for the classification of MSMEs:

  • Micro enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.1 crore (approximately USD 130,000)
    • Annual turnover not more than Rs. 5 crore (approximately USD 650,000)
  • Small enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.10 crore (approximately USD 1.3 million)
    • Annual turnover not more than Rs. 50 crore (approximately USD 6.5 million)
  • Medium enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.50 crore (approximately USD 6.5 million)
    • Annual turnover not more than Rs. 250 crore (approximately USD 3.25 million)
5. Challenges faced by MSME's

Micro, small, and medium enterprises (MSMEs) play a vital role in the Indian economy, accounting for over 90% of all enterprises and employing over 40% of the workforce. However, MSMEs face a number of challenges, including:

  • Access to finance: MSMEs often find it difficult to obtain loans from banks and other financial institutions due to their lack of collateral and track record. This can make it difficult for them to expand their businesses or invest in new technologies.
  • Lack of skills: MSMEs often lack the skills and knowledge needed to compete in the global market. This can make it difficult for them to develop new products and services, or to adopt new technologies.
  • Competition from large businesses: MSMEs often face competition from large businesses, which have more resources and economies of scale. This can make it difficult for MSMEs to compete on price or quality.
  • Bureaucracy: MSMEs often face a number of bureaucratic hurdles, such as obtaining licenses and permits. This can be time-consuming and costly, and can discourage entrepreneurs from starting or expanding their businesses.
  • Infrastructure constraints: MSMEs often face infrastructure constraints, such as poor roads and electricity supply. This can make it difficult for them to transport their goods and services, or to operate their businesses efficiently.
  • Unstable government policies: MSMEs are often affected by unstable government policies, such as changes in tax rates or import duties. This can make it difficult for them to plan for the future and make investment decisions.
6. Government Schmes for MSME's
 

Here are some of the prominent schemes and programs for MSMEs by the Union Government of India:

  1. Micro Units Development and Refinance Agency (MUDRA) Yojana:

    • MUDRA Yojana aims to provide financial support to small and micro enterprises by offering loans through various financial institutions. It consists of three categories: Shishu, Kishor, and Tarun, based on the loan amount.

  2. Pradhan Mantri Mudra Yojana (PMMY):

    • PMMY is a scheme to provide financial assistance for the establishment, expansion, and modernization of MSMEs. It offers loans without collateral security up to a certain limit.

  3. Credit Linked Capital Subsidy Scheme (CLCSS):

    • CLCSS provides capital subsidy to MSMEs for technology upgradation, modernization, and replacement of their plant and machinery to improve competitiveness.

  4. Zero Defect Zero Effect (ZED) Certification Scheme:

    • ZED certification encourages MSMEs to adopt best practices and quality standards to enhance product quality while minimizing environmental impact.

  5. Make in India Initiative:

    • The Make in India campaign encourages domestic and foreign companies to manufacture products in India, fostering the growth of the manufacturing sector and MSMEs.

  6. Stand Up India Scheme:

    • This scheme aims to promote entrepreneurship among women and Scheduled Caste/Scheduled Tribe communities by providing loans for starting new enterprises.

  7. Technology Upgradation Support for MSMEs (TEQUP):

    • TEQUP focuses on supporting MSMEs in adopting modern technology and upgrading their production processes to improve quality and competitiveness.

  8. National Manufacturing Competitiveness Programme (NMCP):

    • NMCP includes various components such as Lean Manufacturing Competitiveness Scheme, Design Clinic Scheme, and more, aimed at enhancing the competitiveness of the manufacturing sector, including MSMEs.

  9. Entrepreneurial and Managerial Development of SMEs (EMD-SME):

    • EMD-SME focuses on providing training, capacity-building, and skill development to entrepreneurs and managers of MSMEs.

  10. Skill India Initiative:

    • While not exclusively for MSMEs, the Skill India program aims to provide skill training to individuals, including those in the MSME sector, to improve employability and entrepreneurship.

  11. Export Promotion Capital Goods (EPCG) Scheme:

    • The EPCG scheme allows MSMEs to import capital goods for the purpose of upgrading technology and enhancing export competitiveness with certain duty benefits.

  12. Udyog Aadhaar Registration:

    • The Udyog Aadhaar registration process simplifies the process of registering and obtaining various benefits for MSMEs, such as easier access to credit and government schemes.
7. Way forward
Addressing these challenges often requires a combination of government support, industry initiatives, access to finance, skill development programs, technology adoption, networking opportunities, and tailored solutions that take into account the unique needs of MSMEs.
 

Previous year Questions

1. Consider the following statements with reference to India: (UPSC 2023)
1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small, and Medium Enterprises qualify under the priority sector.
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. Which of the following can aid in furthering the Government's objective of inclusive growth? (UPSC 2011)
1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the correct answer using the codes given below:
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: D
 Source: The Hindu
 

WESTERN GHATS - LANDSLIDES

 
 
1. Context
Massive landslides hit the district of Wayanad in northern Kerala in the early hours of July 30, with continuous torrential rainfall triggering large-scale death and destruction in Mundakkai, Chooralmala, and Meppadi, and entire villages being washed away. The death toll stands at 215, though the number of missing people indicate that the real toll will be higher
 
 
2.What are the possible causes for landslides in Western ghat?
 
  • Experts agree that multiple factors contribute to landslides, both natural and human-induced. Nearly half of Kerala’s land—19,301 sq km or 49.7%—is susceptible to landslides, according to the Geological Survey of India (GSI).
  • The region’s heavy rainfall and the steep slopes of the Western Ghats make Wayanad particularly vulnerable, with 31.54% of the district at high risk, as per IIT-Delhi research.
  • Human activities have heightened the risk of natural disasters; increased construction and changes in agricultural practices are key contributors.
  • Wayanad has seen a tourism boom in recent years, with homestays and monsoon tourism gaining popularity. Ecologist Madhav Gadgil highlights the construction of resorts, artificial lakes, and abandoned quarries as inappropriate developments in this sensitive zone.
  • Long-term land use changes, beginning with British-era tea plantations and continuing post-Independence, have also played a role.
  • A 2022 study in the International Journal of Environmental Research and Public Health reported a 62% decrease in forest cover and an 1,800% increase in plantation areas from 1950 to 2018. Monocropping has led to the destabilization of topsoil previously held by forest roots.
  • Climate change has indirectly contributed by altering rainfall patterns in the state. The warming Arabian Sea fosters deep cloud systems, resulting in intense rainfall over short periods.
  • Such events have become more frequent even as the number of rainy days during the monsoon has decreased.
  • Despite Wayanad receiving 527 mm of rainfall in 48 hours before the landslide, the district has had normal monsoon rainfall averages, while Kerala has experienced deficits, according to the India Meteorological Department.
  • The previously cool, humid environment with consistent drizzles and monsoon rains is now characterized by hotter, drier summers and intense monsoon downpours.
  • This shift increases landslide risks, as dry soils absorb less water and heavy rains cause runoff, leading to landslides
 
3.What are the natural and man-made factors that triggered large-scale death and destruction in Kerala?
 
Large-scale death and destruction in Kerala have been triggered by a combination of natural and man-made factors:
Natural Factors
  • Kerala experiences intense monsoon rains, which can lead to flooding and landslides. The Western Ghats, with their steep slopes, are particularly prone to such events
  • The topography of regions like Wayanad, which have a significant slope, makes them highly susceptible to landslides
  • Changes in climate patterns have resulted in more intense and concentrated rainfall events, even though the overall number of rainy days has decreased. The warming Arabian Sea has contributed to the formation of deep cloud systems that lead to heavy downpours
Man-Made Factors
  • There has been a significant reduction in forest cover due to plantation agriculture and other developmental activities. This loss of vegetation weakens the soil structure, making it more prone to landslides
  • Unregulated construction, including resorts, homestays, and other infrastructure, has destabilized the land. Inappropriate development in sensitive zones, such as the construction of artificial lakes and abandonment of quarries, has exacerbated the risk.
  • Changes in crop patterns, including the shift to monocropping, have degraded the land. Monocropping loosens the topsoil, which was previously held together by the roots of diverse forest plants
  • The rise in tourism, particularly monsoon tourism, has led to increased construction and human activity in vulnerable areas, further destabilizing the environment
  • Long-term changes in land use, starting with British-era tea plantations and continuing in the post-independence era, have had a lasting impact on the region's ecological stability
 
4. What are Gadgil Committee reccomendations?
 
The Gadgil Committee, formally known as the Western Ghats Ecology Expert Panel (WGEEP), was established by the Ministry of Environment and Forests of India in 2010 under the chairmanship of ecologist Madhav Gadgil. The committee was tasked with assessing the ecological status of the Western Ghats and providing recommendations for its conservation and sustainable development.
 
Here are some of the key recommendations made by the Gadgil Committee:
 
  • Ecologically Sensitive Zones (ESZ): The committee proposed classifying the entire Western Ghats into three zones based on their ecological sensitivity:
    • ESZ 1: Highest sensitivity areas where stringent regulations should apply.
    • ESZ 2: Moderate sensitivity areas with moderate regulations.
    • ESZ 3: Lowest sensitivity areas where the least restrictive regulations would apply
  • Ban on Certain Activities in ESZ 1: Activities such as mining, quarrying, and large-scale constructions should be banned in ESZ 1. Deforestation and conversion of public lands for private purposes should also be prohibited.
  • Regulation of Developmental Activities: Developmental activities in ESZ 2 and ESZ 3 should be carefully regulated to ensure they do not harm the environment. This includes control over tourism, infrastructure projects, and industrial activities
  • Protection of Forests: Emphasis on the conservation and regeneration of natural forests. Plantation activities should be eco-friendly, promoting native species.
  • Biodiversity Conservation: Measures to protect the rich biodiversity of the Western Ghats, including the establishment of wildlife corridors and conservation areas.
 
5. Significance of Western Ghats
 
The Western Ghats, a UNESCO World Heritage Site, hold immense ecological, climatic, cultural, and economic significance:
 
  • The Western Ghats are one of the world's eight "hottest hotspots" of biological diversity. They host over 7,400 species of flowering plants, 139 mammal species, 508 bird species, 179 amphibian species, 6,000 insect species, and 290 freshwater fish species, many of which are endemic.
  • A significant proportion of the species found in the Western Ghats are endemic, meaning they are not found anywhere else in the world. This includes many unique species of plants, animals, and microorganisms
  • The region provides crucial ecosystem services, such as water purification, climate regulation, soil stabilization, and carbon sequestration
  • The Western Ghats play a critical role in the Indian monsoon system. They intercept the moisture-laden winds from the southwest, causing heavy rainfall on the western side, which supports lush forests and agriculture
  • The forests of the Western Ghats act as a climate buffer, moderating temperatures and maintaining regional climate stability
  • The Western Ghats are the source of numerous rivers, including the Godavari, Krishna, and Cauvery, which provide water to millions of people in peninsular India. These rivers are crucial for drinking water, irrigation, and hydropower
  • The Western Ghats are home to numerous indigenous communities and tribal groups who have lived in harmony with the environment for centuries. These communities have rich cultural traditions and knowledge systems linked to the forests and biodiversity
  • Many areas in the Western Ghats are considered sacred by local communities and host numerous temples, shrines, and pilgrimage sites.
  • The Western Ghats support diverse agricultural systems, including spice plantations (pepper, cardamom), tea, coffee, and rubber. These crops are economically significant both domestically and for export
 
6.Way forward
 
The Geological Survey of India (GSI) has been appointed as the primary agency for conducting landslide studies and developing an early warning system and protocols for reducing landslide risks. However, according to a senior GSI official, this system is still in the experimental phase and will require an additional four to five years before it is ready for public implementation. Since the start of the 2024 monsoon, regional landslide forecast bulletins have been issued to state and district authorities in Wayanad, mostly indicating a "low" probability of landslides, with a "moderate" probability predicted on July 30, 2024
 
 
 
For Prelims: Western Ghats, Eastern Ghats, Landslides, Flash floods
For Mains: GS 1 - Indian Geography
 
 
 
Source: The Hindu

SUB QUOTAS OF SCHEDULED CASTE (SC)

 
 
1. Context
A seven-judge Bench of the Supreme Court has ruled that States have the power to sub-divide Scheduled Castes (SC) into groups so that it can give sub-quotas within the quota for Dalits. In the process, the Bench overruled a 2004 judgment by a five-member Constitution Bench that said such sub-classification was impermissible as Parliament alone was empowered to modify the list of SCs notified by the President under Article 341 of the Constitution.
 
2. 2004 Judgement
 
  • The Andhra Pradesh Scheduled Castes (Rationalisation of Reservation) Ordinance, 1999, and the subsequent Act created four groups—A, B, C, and D—within the Scheduled Castes, each allocated different reservation percentages.
  • This sub-classification aimed to address the varying levels of advancement among the communities listed as Scheduled Castes and to ensure representation for the less advanced castes. The Andhra Pradesh High Court upheld the Act against legal challenges.
  • However, the Supreme Court's Constitution Bench of five judges declared this sub-classification unconstitutional. In the November 2004 judgment in E.V. Chinnaiah vs State of Andhra Pradesh, the Court emphasized that under Article 341 of the Constitution, the President is responsible for notifying the Scheduled Castes list, which can only be altered by an act of Parliament, not by further notifications.
  • The Bench ruled that once listed under Article 341, Scheduled Castes form a single homogeneous class, and state legislatures lack the authority to further classify them into separate groups
 
3. Latest Judgement
 
  • Six of the seven judges have now determined that the 2004 ruling was incorrect. Chief Justice D.Y. Chandrachud, along with Justice Manoj Mishra, concluded that SC communities should not be considered a homogeneous class as previously judged.
  • He contested the notion that listing SCs creates a presumption of uniform status among them. While SCs share a common constitutional identity due to their shared experiences of untouchability and discrimination, this does not negate the diversity within these communities.
  • Citing both historical and empirical evidence, Chief Justice Chandrachud demonstrated that significant differences exist among SC communities, with instances where some SC groups have faced discrimination from others within the same category.
  • Thus, sub-classification is permissible if it is based on a clear and rational distinction with a valid purpose. This sub-classification is subject to judicial review, and the State must justify it with empirical data.
  • Chief Justice Chandrachud also clarified that sub-classification does not alter the Presidential list of SCs and does not breach Article 341, which gives the President exclusive authority to notify Scheduled Castes.
  • Article 341 serves to define who falls under the SC category, but states have the autonomy to recognize varying degrees of backwardness and provide special provisions or extend reservation benefits accordingly.
  • The new ruling is anticipated to encourage states to allocate sub-quotas for the most marginalized Dalit sections who have not benefited from reservations to date.
  • In her dissent, Justice Bela Trivedi upheld the Chinnaiah doctrine, arguing that sub-classification of a homogeneous class is impermissible and constitutes an alteration of the President’s list under Article 341
4.Exclusion of Creamy layer
 
  • The creamy layer concept is currently applicable only to Other Backward Classes (OBCs) and has not been extended to Dalit communities. Justice B. R. Gavai, who concurs with the Chief Justice in a separate opinion, elaborated on the need to identify more advanced members within the Scheduled Castes and exclude them from affirmative action benefits.
  • Justice Gavai argued that treating all members of a community equally may not be just, especially when considering differences in social and economic status.
  • He questioned whether the children of IAS or IPS officers should be given the same benefits as children from remote villages within the same community, given their differing access to resources and opportunities.
  • He emphasized that combining such disparate groups under the same category would undermine the principle of equality. However, he also noted that the criteria for excluding the creamy layer among SCs should differ from those used for OBCs. Three other judges supported his perspective. Despite this, their opinions do not mandate the government to apply the creamy layer concept to SCs, as this issue was not directly addressed in the case at hand
 
5. Way forward
 
The ongoing judicial debates and rulings concerning the classification and reservation policies for Scheduled Castes (SCs) and Other Backward Classes (OBCs) reflect a nuanced approach to addressing socio-economic inequalities within these groups. The Supreme Court's recent judgments, which have revisited earlier rulings, highlight the complex interplay between ensuring equitable access to affirmative action benefits and recognizing the diverse needs within these communities
 
 
For Prelims: Current events of national and international importance
For Mains: GS-II: Government policies and intervention
 
Previous Year Questions

Prelims

1.Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India: (UPSC CSE 2019)

1. PVTGs reside in 18 states and one Union Territory.

2. A stagnant or declining population is one of the criteria for determining PVTG status.

3. There are 95 PVTGs officially notified in the country so far.

4. Irular and Konda Reddi tribes are included in the list of PVTGs.

Which of the statements given above are correct?

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1, 3 and 4

Answer (c)

  • PVTGs reside in 18 states and one Union Territory: This is correct. PVTGs are distributed across various states and one Union Territory in India.

  • A stagnant or declining population is one of the criteria for determining PVTG status: This is correct. Criteria for identifying PVTGs include factors like a stagnant or declining population, pre-agricultural level of technology, extremely low literacy, and a subsistence level of economy.

  • There are 95 PVTGs officially notified in the country so far: This statement is incorrect. There are 75 PVTGs officially notified in the country.

  • Irular and Konda Reddi tribes are included in the list of PVTGs: This is correct. Both the Irular and Konda Reddi tribes are recognized as PVTGs.

Given this analysis, the correct statements are 1, 2, and 4

Mains

1.What are the two major legal initiatives by the state since independence addressing discrimination against Scheduled Tribes (STs)? (UPSC CSE 2017)
 
Source: The Hindu
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