RETAIL INFLATION
1. Context
India’s retail inflation stayed under the Reserve Bank of India’s median target of 4% for the second successive month in August, even as it inched up marginally to 3.65% from an upwardly revised 3.6% in July. August’s inflation pace is the second-slowest in five years
2. What is Inflation?
- It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
- In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
- Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.
3. Retail Inflation
Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.
4. How Inflation is measured?
- In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
- The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
- On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
- Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India.
5. What is the Inflation Target?
- Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
- Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
- On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
- Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.
6. Monetary Policy Committee (MPC)
- The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
- It was created to bring transparency and accountability in deciding monetary policy.
- MPC determines the policy interest rate required to achieve the inflation target.
- The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
- The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.
7. What Caused the drop in Inflation?
- Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
- The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
- With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
- Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.
8. Recent Measures by the Government
To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.
For Prelims & Mains
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For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation For Mains:
1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4
3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only 5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only B. 2 only C. 2 and 3 only D. 1, 2 and 3
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
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Source: The Hindu
COMPTROLLER AUDITOR GENERAL (CAG)
1. Context
The Comptroller and Auditor General of India has blown the lid off major irregularities in Odisha’s mining sector, estimating the loss of mining revenue and value of minerals at a whopping ₹22,392.51 crore.
2. About CAG
- Article 148 of the Indian Constitution provides for an Independent Office of Comptroller Auditor General (CAG)
- Head of the Indian Audits and Account Department
- It is an apex authority for external and internal audits of the expenses of the National and State governments
3. Appointments, Term & Removal
- The CAG is appointed by the President, they should take oath before the president or before someone from the President's office
- CAG holds Office for six years or up to the age of 65 years whichever is early
- CAG can resign by addressing their resignation to the President
- CAG can be removed by the President from Office in the same manner as a Supreme court Judge or Resolution passed by the President in both houses of the Parliament with a special majority, either on the ground of misbehaviour or incapacity
- CAG is not eligible to join any Central Government Post or any State government Post
- Expenses, allowances, and salaries are drawn from the Consolidated Fund of India.
4. Duties of CAG
Articles 148,149,150 and 151 of the Constitution of India describe the function and power of the CAG office
- CAG will conduct all expenses from Consolidated Fund in all the states and UT has a legislative assembly
- CAG Audits all the expenses from the Contingency Fund of India and Public accounts of India as well as the Contingency Fund of State and Public Accounts of a State
- CAG Audits all trading accounts, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central and State Governments
- CAG Audits the receipts and expenditures of all bodies and Authorities which are financed by the Central and State Government revenues
- CAG Submits audit reports relating to the Central Government to President and State Governments to Governor, they will furnish these reports in parliament as well as in-state assemblies
- CAG submits three reports to the President 1-Report on Appropriation accounts, a report on financial accounts, a report on public undertakings
5. CAG Audit and Financial Irregularities
The Comptroller and Auditor General (CAG) of India conducted an audit of expenses in nine BMC departments between November 28, 2019, and October 31, 2022.
The audit was initiated by the state government, which highlighted alleged irregularities amounting to Rs 12, 000 crores in 76 projects, primarily undertaken during the pandemic.
Obstacles Faced by CAG The CAG's audit covered Rs 8, 500 crores of the total expenditure, as the BMC objected to auditing the remaining amount. The BMC issued a legal notice to halt the audit of any acts, works or decisions related to Covid management and expenditure amounting to Rs 3, 538.73 crores, citing provisions of the Epidemic Act, 1897 and the Disaster Management Act 2005.
Project Audits and Findings The CAG report, spanning 146 pages, highlighted weaknesses in internal control mechanisms within the BMC. It revealed instances where work orders were awarded without tenders, contractual documents were not executed and third-party auditors were not appointed to assess the quality of work.
Departments Under Scrutiny Various BMC departments were found to have financial irregularities. The Development Plan Department was flagged for overvaluation of expenditure during land acquisition and delays in acquiring land for public amenities. The Bridges Department awarded work orders without registering private contractors with the BMC. The report also mentioned cost escalations, delayed clearances and irregularities in various other projects and departments.
Financial Transactions During the Pandemic While the ED is investigating financial transactions during the Pandemic period, the CAG report sheds light on the wide-ranging financial irregularities across multiple BMC departments.
6. The way forward
The ED raids and the CAG report have brought to light alleged financial irregularities in the BMC's operations. Investigations and further actions will be taken to determine the extent of the scam and hold those responsible accountable.
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For Prelims: Enforcement Directorate, Brihanmumbai Municipal Corporation, Special Investigation Team, Comptroller Auditor General, Consolidated Fund of India, Contingency Fund of India, Report on Appropriation accounts, a report on financial accounts, a report on public undertakings,
For Mains:
1. Examine the constitutional provisions and powers of the CAG in conducting audits of government expenses at both the central and state levels. Discuss the significance of the CAG's role in upholding financial discipline and promoting good governance. (250 Words)
2. Explore the role of technology and digital platforms in improving financial oversight and preventing irregularities in government projects. Discuss the potential benefits and challenges associated with the implementation of digital auditing mechanisms. (250 Words)
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Previous Year Questions
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS 2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
Answer: D
2. The Comptroller and Auditor-General (CAG) of India can be removed from office only by the: (UPSC CAPF 2015)
A. President on the advice of the Union Cabinet.
B. Chief justice of the Supreme Court.
C. President of India after an address in both Houses of Parliament.
D. President on the advice of Chief Justice of India.
Answer: C
3. With reference to the Union Government, consider the following statements: (UPSC 2015)
1. The Department of Revenue responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India
3. All the disbursements made from Public Account also need authorization from the Parliament of India.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 2 only D. 1, 2 and 3
Answer: C
4. The Contingency Fund of India is placed at whose disposal? (SSC CGL 2017)
A. The Prime Minister
B. Judge of Supreme Court
C. The President
D. The Finance Minister
Answer: C
5. In India, other than ensuring that public funds are used efficiently and for their intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)? (UPSC 2012)
1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares a national emergency/financial emergency.
2. CAG reports on the execution of projects or programs by the ministers are discussed by the Public Accounts Committee.
3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
A. 1, 3 and 4 only B. 2 only C. 2 and 3 only D. 1, 2, 3 and 4
Answer: C
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Source: The Indian Express
UNIVERSAL BASIC INCOME
1. Context
Due to the phenomenon of jobless growth, i.e., the rise in output and labour productivity without the commensurate growth in employment generation, several countries have mooted the idea of a universal basic income (UBI).
2. Universal Basic Income (UBI)
- Universal Basic Income (UBI) is a social welfare program that aims to provide all citizens of a country with a regular and unconditional cash transfer from the government.
- The concept of UBI has gained traction in recent years as a potential solution to address economic inequality, poverty, and unemployment in society.
- Under this system, every individual, regardless of income, employment status, or wealth, would receive a fixed amount of money regularly.
- Under a UBI program, all citizens, including children and the elderly, receive a fixed amount of money regularly, usually every month.
- The payment is unconditional, meaning that individuals are not required to meet any specific criteria or work requirements to receive the income.
- The amount of the UBI payment can vary depending on the country's economic conditions and the objectives of the program.
3. Significance of Universal Basic Income:
- Poverty Reduction: One of the primary goals of UBI is to alleviate poverty by providing a basic level of financial security to all citizens. It ensures that every individual has access to a minimum standard of living, reducing the risk of extreme poverty and improving overall well-being.
- Economic Stimulus: UBI can serve as an economic stimulus by putting more money directly into the hands of consumers. Increased consumer spending can lead to higher demand for goods and services, potentially boosting economic growth.
- Job Displacement and Automation: With the rise of automation and advancements in technology, UBI has been proposed as a way to address potential job losses. By providing a regular income, individuals who lose their jobs due to automation can have a safety net while they seek new opportunities or reskill themselves.
- Social Equality and Human Dignity: UBI promotes social equality by providing every citizen with the same basic income, regardless of their socio-economic background. It recognizes the inherent dignity of individuals and their right to a decent standard of living.
- Streamlining Social Welfare Programs: UBI has the potential to simplify the existing complex welfare systems, reducing bureaucracy and administrative costs. By consolidating various means-tested programs, UBI can make social support more accessible and efficient.
4. Criticisms and Challenges of Universal Basic Income:
- Cost and Funding: One of the main challenges of implementing UBI is its cost. Providing a regular income to every citizen requires significant financial resources, and funding such a program without negatively impacting the economy or burdening taxpayers is a major concern.
- Inflationary Pressures: Critics argue that introducing UBI might lead to inflation, as increased consumer spending could drive up prices, reducing the purchasing power of the UBI payment.
- Work Incentives: Some opponents of UBI fear that providing unconditional income might disincentivize people from working or seeking employment, potentially leading to a decline in labor force participation.
- Targeting and Equity: Critics argue that UBI might not effectively target those who are most in need of financial assistance, as it provides the same amount to every citizen, including those who might not require additional support.
- UBI Pilots and Experiments: Several countries and regions have conducted pilot projects and experiments to test the feasibility and impact of UBI. These experiments aim to gather data on the potential benefits and drawbacks of implementing such a program on a larger scale.
5. India’s Pilot Project, Madhya Pradesh
- In 2011, SEWA, funded by UNICEF, conducted a pilot study of Universal Basic Income in 8 villages of Madhya Pradesh for 18 months.
- Most villagers did not prefer subsidies (covering, Rice, wheat, kerosene, and sugar) as a result of the basic income experience. They Choose each transfer over subsidies.
- Many people used the money to improve their housing infrastructure by building roofs and walls, toilets, etc.
- This meant a reduced number of diseases emanating from dirty surroundings, which indirectly reduces their expenditure on fighting such diseases. It was also reported that nutrition levels improved, particularly among the Scheduled Castes (SCs) and the Scheduled Tribes (STs).
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For Prelims: Universal Basic Income(UBI), United Nations International Children's Emergency Fund (UNICEF), Sikkim Democratic Front (SDF), and Self-employed Women Associations (SEWA).
For Mains: 1. Discuss the concept of Universal Basic Income (UBI) as a potential solution to address economic inequality and poverty. Evaluate its advantages and disadvantages in the context of a developing economy like India.(250 Words)
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Previous year Questions1. A recent radical idea to overcome the problem of poor targeting and misallocation of social welfare schemes is that of (APPSC Group 1 2017)
A. Universal Basic Income
B. Direct Beneficiary Transfer
C. Direct allocation of funds to Local Bodies
D. Privatization of all subsidy schemes
Answer: A
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Source: The Indian Express
STANDING COMMITTEES ON STATISTICS (SCoS)
1. Context
The Union Ministry of Statistics and Programme Implementation has dissolved the 14-member Standing Committee on Statistics (SCoS) headed by eminent economist and former chief statistician of the country Pronab Sen. Geeta Singh Rathore, Director-General of the Ministry’s National Sample Survey Office (NSSO), told the SCoS members that its works overlapped with that of the Steering Committee for National Sample Surveys, headed by Rajeeva Laxman Karandikar, former director of the Chennai Mathematical Institute and this was cited as the reason for dismantling the SCoS. Dr. Sen has said that the SCoS members had questioned the delay in conducting the census, as censuses have long been a crucial source of reliable data for policymakers. He also complained that the members were not given any specific reason for the committee’s dissolution.
2. What is the Standing Committee on Statistics?
- The Standing Committees on Statistics (SCoS) are expert committees established to provide guidance and oversight in improving the quality, credibility, and timeliness of official statistics in India.
- These committees are generally formed under the Ministry of Statistics and Programme Implementation (MoSPI) or other related government bodies to enhance the statistical system of the country
- The SCoS provided recommendations to the government on survey methodologies, such as sampling frameworks, designs, instruments, and questions. It played a crucial role in finalizing survey tabulation plans, reviewing existing frameworks, and addressing issues related to subjects, outcomes, and methods that arose periodically across all surveys.
- The SCoS's mandate also involved offering guidance for conducting pilot surveys or pre-tests, assessing the availability of administrative data for surveys/statistics, identifying data gaps, suggesting additional data needs, and offering technical advice to both central and state agencies involved in conducting surveys
3. Steering Committee
- The Steering Committee, which has replaced the SCoS, consists of 17 members and one non-member secretary. At least four experts from the SCoS have been retained in the new committee, alongside officials like Ms. Rathore.
- The four experts who continue to serve are Sonalde Desai, Bishwanath Goldar, S. Chandrasekhar, and Mausumi Bose.
- The Steering Committee has a tenure of two years, and its Terms of Reference closely mirror those of the SCoS, including the review of subject results, methodologies, questionnaires, sampling frames, designs, concepts, definitions, and survey instruments for all National Sample Surveys. It will also provide recommendations to the Ministry on survey methodology and finalize survey tabulation plans.
- Although both committees share similar responsibilities, the Steering Committee's composition differs by having more official members, while the SCoS included a larger number of non-official members
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Census in India
The Census of India is a comprehensive and systematic collection of demographic, social, and economic data on the population of India. It is the largest administrative exercise conducted by the Government of India and provides vital information that helps in policy-making, resource allocation, and understanding population trends
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For Prelims: Standing Committees, Ethics Committees, Adhoc Committees
For Mains: Parliamentary Committees of Indian Parliament
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Previous Year Questions
1. Consider the following statements: The Parliamentary Committee on Public Accounts (UPSC CSE 2013)
1. consists of not more than 25 members of the Lok Sabha.
2. scrutinizes appropriation and finance accounts of the Government.
3. examines the report of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 and 3 Only
C. 3 only
D. 1, 2 and 3
Answer (B)
2.With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation ? (UPSC CSE, 2018)
(a) Committee on Government Assurances (b) Committee on Subordinate Legislation (c) Rules Committee (d) Business Advisory Committee Answer (b)
3.Which one of the following is the largest Committee of the Parliament? (UPSC CSE, 2014)
(a) The Committee on Public Accounts (b) The Committee on Estimates (c) The Committee on Public Undertakings (d) The Committee on Petitions Answer (b)
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Source: The Hindu
INDEX OF INDUSTRIAL PRODUCTION (IIP)
1. Context
In absolute terms, the Index of Industrial Production (IIP) slid to a three-month low, with output levels declining 0.73% from June. Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was the only broad segment to clock a sequential uptick over June’s levels, albeit by a tepid 1.6%. Mining grew a mere 3.7% after a 10.3% rise in the previous month. Electricity generation growth slowed to 7.9% from 8.6% in June. On an end-use basis, output growth fell in four segments, from June’s pace
2. About the Index of Industrial Production (IIP)
- The Index of Industrial Production (IIP) is a macroeconomic indicator that measures the changes in the volume of production of a basket of industrial goods over some time.
- It is a composite index that reflects the performance of the industrial sector of an economy.
- The IIP is compiled and released by the Central Statistical Organisation (CSO) in India.
- The IIP is calculated using a Laspeyres index formula, which means that the weights assigned to different industries are based on their relative importance in a base year. The current base year for the IIP is 2011-12.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers.
- It covers 407 item groups included into 3 categories viz. Manufacturing, Mining and Electricity.
- The IIP is a useful tool for assessing the health of the industrial sector and the overall economy.
- It is used by policymakers, businesses, and investors to track trends in industrial production and make informed decisions.
3. Significance of IIP
The IIP is a significant economic indicator that provides insights into the following aspects
- The IIP reflects the growth or decline of the industrial sector, which is a major contributor to overall economic growth.
- The IIP measures the level of industrial activity, indicating the production volume of various industries.
- The IIP serves as a guide for policymakers to assess the effectiveness of economic policies and make informed decisions.
- Businesses use the IIP to assess market conditions, make production plans, and evaluate investment opportunities.
- The IIP influences investor sentiment as it reflects the overall health of the industrial sector.
4. Service Sector and IIP
- The IIP does not include the service sector. It focuses on the production of goods in the industrial sector, such as manufacturing, mining, and electricity.
- The service sector is measured by a separate index, the Index of Services Production (ISP).
- The IIP data is released monthly by the Central Statistical Organisation (CSO) in India.
- The data is released with a lag of six weeks, allowing for the collection and compilation of information from various industries.
5. Users of IIP Data
The IIP data is used by a wide range of stakeholders, including:
- Government agencies and central banks use the IIP to assess economic conditions and formulate policies.
- Companies use the IIP to evaluate market trends, make production decisions, and assess investment opportunities.
- Investors use the IIP to gauge the health of the industrial sector and make investment decisions.
- Economic analysts and researchers use the IIP to study economic trends and develop forecasts.
- The IIP is widely reported in the media and is of interest to the general public as an indicator of economic performance.
6. Manufacturing Drives Industrial Production Growth
- Factory output gained on the back of a 9.3 per cent increase in manufacturing, which accounts for 77.6 per cent of the weight of the IIP (Index of Industrial Production).
- Manufacturing output had grown by 5 per cent in July and had contracted by 0.5 per cent in August 2022.
- In absolute terms, it improved to 143.5 in August from 141.8 in July and 131.3 in the year-ago period.
- As per the IIP data, seven of the 23 sectors in manufacturing registered a contraction in August, with furniture, apparel, and computer and electronics among the significant non-performers.
- Among the performing sectors, fabricated metal products, electrical equipment and basic metals fared better.
- Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports as these two are export-dependent.
- The electronics industry also witnessed negative growth, which again can be linked to existing high stocks and lower export demand.
- In terms of the use-based industries, consumer durables output returned to positive territory for the second time this fiscal with 5.7 per cent growth in August, reflecting a pickup in consumption demand.
- However, it came on the back of a 4.4 per cent contraction in consumer durables output in the year-ago period.
- Primary, infrastructure/ construction, and capital goods recorded double-digit growth rates in August at 12.4 per cent, 14.9 per cent and 12.6 per cent, respectively.
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For Prelims: The Index of Industrial Production (IIP), Central Statistical Organisation,
For Mains:
1. Discuss the significance of the Index of Industrial Production (IIP) as an economic indicator and its role in assessing the health of the industrial sector and the overall economy. (250 Words)
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| Previous Year Questions
1. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC CSE 2012)
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
A. 1 and 5 only B. 2, 3 and 4 only C. 1, 2, 3 and 4 only D. 1, 2, 3, 4 and 5
Answer: C
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Source: indianexpress
AYUSHMAN BHARAT
1. Context
The Union Cabinet on Wednesday cleared the expansion of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to provide health coverage to “all senior citizens aged 70 years and above irrespective of their income”.
2. About Ayushman Bharat Scheme
The Ayushman Bharat scheme, officially known as the Pradhan Mantri Jan Arogya Yojana (PM-JAY), is a flagship healthcare initiative launched by the Government of India in September 2018. It is aimed at providing financial protection and access to quality healthcare services to a significant portion of India's population, especially those who are economically disadvantaged and vulnerable.
The scheme has two main components:
- Health and Wellness Centers (HWCs): This component aims to transform the existing sub-centers and primary health centers into Health and Wellness Centers. These centers serve as the first point of contact for individuals seeking healthcare services. They offer a range of preventive, promotive, and basic healthcare services, including maternal and child health services, communicable disease management, and health education.
- Pradhan Mantri Jan Arogya Yojana (PM-JAY): PM-JAY is the larger component of the Ayushman Bharat scheme, focused on providing health insurance coverage to economically vulnerable families. It offers financial protection against catastrophic health expenses by covering the cost of hospitalization and certain medical procedures. PM-JAY provides coverage up to ₹5 lahks (per family per year) for secondary and tertiary care hospitalization. This includes coverage for a wide range of medical treatments, surgeries, and therapies.
3. Key features of PM-JAY include:
- Universal Coverage: PM-JAY covers over 10 crore (100 million) vulnerable and economically disadvantaged families, which is approximately 50 crore individuals, making it one of the largest government-funded healthcare insurance programs in the world.
- Cashless Transactions: Beneficiaries can avail of cashless and paperless healthcare services at any empanelled public or private hospital across the country.
- Portability: The scheme is portable, meaning beneficiaries can access services in any part of the country, irrespective of where they are registered under the scheme.
- No Cap on Family Size: The benefits under the scheme are not limited by family size or age, providing comprehensive coverage to all eligible family members.
- Priority for Women and Senior Citizens: The scheme gives priority to women, senior citizens, and individuals from marginalized communities.
- Empanelled Hospitals: The scheme has a network of public and private hospitals that have been empanelled to provide services under PM-JAY.
4. What is National Health Authority (NHA)?
- The National Health Authority (NHA) is the apex body responsible for the implementation and management of the Pradhan Mantri Jan Arogya Yojana (PM-JAY), also known as Ayushman Bharat, in India.
- It was established as an autonomous body by the Government of India in January 2019.
- The NHA plays a crucial role in the effective execution of the world's largest government-funded health insurance scheme.
Key functions and responsibilities of the National Health Authority include:
- Policy Formulation: The NHA is responsible for formulating policies and guidelines for the implementation of PM-JAY. It works to ensure that the scheme aligns with the broader objectives of universal health coverage and affordable healthcare for all.
- Enrollment and Beneficiary Identification: The NHA oversees the process of identifying and enrolling eligible beneficiaries for PM-JAY. This involves creating and maintaining a comprehensive database of eligible families to ensure accurate and efficient access to healthcare services.
- Empanelment of Hospitals: The NHA empanels both public and private hospitals to participate in the scheme. These hospitals are evaluated based on their infrastructure, facilities, and willingness to provide services under PM-JAY. Empanelled hospitals provide cashless and quality healthcare services to beneficiaries.
- Claims Management: The NHA is responsible for managing the claims process, which includes processing and reimbursing hospitals for the healthcare services provided to beneficiaries. This process ensures that beneficiaries can access medical treatment without facing financial barriers.
- Monitoring and Quality Assurance: The NHA monitors the implementation of PM-JAY to ensure that the services provided by empanelled hospitals meet quality standards. It conducts regular audits and assessments to maintain the quality of healthcare services.
- Technology and Data Management: The NHA employs technology extensively to manage beneficiary data, hospital empanelment, claims processing, and monitoring. This helps in creating an efficient and transparent system for the implementation of the scheme.
- Capacity Building: The NHA works on capacity-building initiatives for stakeholders involved in the implementation of PM-JAY. This includes training for healthcare providers, government officials, and other relevant personnel.
- Research and Innovation: The NHA focuses on research and innovation to improve the implementation of PM-JAY. It explores ways to enhance the scheme's reach, effectiveness, and impact.
5. Is National Health Authority a Statutory Body?
- The National Health Authority (NHA) is a statutory body. It was established by an Act of Parliament known as the " National Health Authority Act, 2019.
- The Act was passed to provide a legal framework for the creation and functioning of the NHA, which is responsible for the implementation of the Pradhan Mantri Jan Arogya Yojana (PM-JAY), also known as Ayushman Bharat.
- The National Health Authority Act, 2019, outlines the composition, Powers, functions, and responsibilities of the NHA.
- It grants the NHA the authority to manage and oversee the implementation of PM-JAY, which is one of the largest government-funded health insurance schemes in the world.
- The Act also provides the NHA with the necessary legal framework to carry out its role effectively, including policy formulation, enrollment of beneficiaries, empowerment of hospitals, claims processing, and quality assurance.
- As a statutory body, the National Health Authority operates within the legal framework provided by the Act and has the authority to make decisions, issue guidelines, and implement policies related to the functioning of PM-JAY.
- This legal status ensures that the NHA has the necessary autonomy and powers to carry out its responsibilities in the implementation of the healthcare scheme.
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For Prelims: Ayushman Bharat, Pradhan Mantri Jan Aarogya Yojana (PMJAY), the Comptroller and Auditor General of India (CAG), Health and Wellness Centers (HWCs), National Health Authority (NHA).
For Mains: 1. Discuss the significance, achievements, and challenges of the Ayushman Bharat scheme in the context of achieving universal health coverage in India. (250 Words).
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Previous year Question
1. With reference to Ayushman Bharat Digital Mission, consider the following statements: (UPSC 2022)
1. Private and public hospitals must adopt it.
2. As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.
3. It has seamless portability across the country.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: B
2. With reference to 'Ayushman Bharat Yojana' which of the following statement(s) is/are correct? (UPPSC 2020)
1. This Yojana provides free health insurance of Rs. 5 lahks per person.
2. The expenses incurred in this Scheme (Yojana) is shared between the Centre and State in a 60:40 ratio.
Select the correct answer from the codes given below.
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
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Source: The Indian Express
ATTORNEY GENERAL OF INDIA (AGI)
1. Context
Effectuation of fundamental duties is and will always be a continuing task, calling for duty-specific legislations, schemes and supervision, Attorney General R Venkataramani told the Supreme Court
2. Attorney General for India
- The Constitution of India places the post of the A-G on a special footing. The A-G is the Government of India’s first law officer and has the right of audience in all courts of the country. The Attorney General (AG) of India is a part of the Union Executive.
- Article 76 of the Constitution provides for the office of AG of India.
Appointment, eligibility, term of office and duties
- Appointment and Eligibility: AG is appointed by the President on the advice of the government.
- Under Article 76(1), the A-G is appointed by the President from among persons who are qualified to be appointed a Judge of the Supreme Court
- Article 76(4) says “the Attorney-General shall hold office during the pleasure of the President and shall receive such remuneration as the President may determine.”
- Simply put, A-G must be a person who is qualified to be appointed a judge of the Supreme Court
- He or she must be a citizen of India and must have been a judge of some high court for five years or an advocate of some high court for ten years or an eminent jurist, in the opinion of the President.
Term of the Office: (Not fixed by the Constitution)
Procedures and grounds for the removal of AG are not stated in the Constitution.
A-G holds office during the pleasure of the President (may be removed by the President at any time).
Duties:
- Article 76(2) of the Constitution says “it shall be the duty of the Attorney-General to give advice to the Government of India upon such legal matters, and to perform such other duties of a legal character, as may from time to time be referred or assigned to him by the President”.
- The A-G is also supposed to “discharge the functions conferred on him by or under this Constitution or any other law for the time being in force”.
- A-G advises the Government of India (GoI) upon such legal matters, which are referred to her/him by the President.
- A-G perform such other duties of a legal character that are assigned to her/him by the President.
- A-G appears on behalf of the GoI in all cases in the Supreme Court or in any case in any High Court in which the GoI is concerned.
- A-G represents the GoI in any reference made by the President to the Supreme Court under Article 143 (Power of the President to consult the Supreme Court) of the Constitution.
3.What else you should know about the A-G?
- Under Article 88, the “Attorney-General of India shall have the right to speak in, and otherwise to take part in the proceedings of, either House, any joint sitting of the Houses, and any committee of Parliament of which he may be named a member”.
- However, he or she doesn’t have the right to vote in the House.
- The A-G for India is not, like the A-G for England and Wales and the A-G of the United States, a member of the Cabinet.
- A-G enjoys all the privileges and immunities that are available to a member of Parliament.
- A-G does not fall in the category of government servants, A-G is not debarred from private legal practice. However, A-G should not advise or hold a brief against the GoI.
- The remuneration of the Attorney General of India is not fixed by the Constitution. He receives such remuneration as the President may determine.
- The post of the A-G has been occupied by some of the finest jurists in India’s history. The first two incumbents of the post were the legendary M C Setalvad and C K Daphtary.
4.Solicitor General of India and Advocate General of India
- Solicitor General of India and Additional Solicitor General of India assist the AG in fulfilment of the official responsibilities.
- The corresponding Office for Attorney General in the states is Advocate General (Article 165).
- The Advocate General is appointed by the Governor of the State, who must be a person qualified to be appointed a judge of a High Court.
- He/she must be a citizen of India and must have held a judicial office for a period of ten years or been an advocate of a high court for ten years.
- The Constitution does not fix the term of office of the Advocate General and it does not contain the procedure and grounds for his/her removal.
- The Advocate General holds office during the pleasure of the Governor of the State, which means that he/she may be removed by the Governor at any time.
5.A-G and the Constitutional Assembly Debate
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For Prelims: Attorney General of India, Solicitor General of India For Mains: Appointment and Functions of Attorney General of India |
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Previous Year Questions
1.Consider the following statements : (UPSC CSE 2022)
1. Attorney General of India and Solicitor General of India are the only officers of the Government who are allowed to participate in the meetings of the Parliament of India.
2. According to the Constitution of India, the Attorney General of India submits his resignation when the Government which appointed him resigns.
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 (D)
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Source: indianexpress
