BUDGET 2024- KEY HIGHLIGHTS
Overview
"Budget Insight 2024" is a special edition magazine tailored for UPSC aspirants, focusing exclusively on the Union Budget 2024. This comprehensive guide breaks down the complex financial document into digestible, exam-relevant content. It serves as an essential resource for candidates preparing for various stages of the UPSC examination, offering in-depth analysis, key highlights, and potential questions related to the budget.
The magazine is structured to provide a holistic understanding of the Union Budget 2024, catering specifically to UPSC exam requirements:
- Executive Summary: A concise overview of the budget's main points, key allocations, and major policy shifts.
- Economic Survey Analysis: Breakdown of the Economic Survey preceding the budget, highlighting crucial economic indicators and their implications.
- Sector-wise Budget Allocation: Detailed examination of budget allocations across various sectors such as agriculture, defense, education, healthcare, and infrastructure.
- Policy Initiatives: In-depth analysis of new schemes, programs, and policy changes introduced in the budget.
- Fiscal Management: Explanation of fiscal deficit, revenue projections, and debt management strategies outlined in the budget.
- Taxation Changes: Comprehensive coverage of alterations in direct and indirect taxes, and their potential impact on the economy.
- Socio-economic Implications: Discussion on how budget provisions affect different sections of society and various economic indicators.
- Budget and Five-Year Plans: Correlation between budget allocations and ongoing five-year plan objectives.
- International Perspective: Comparison of India's budget with global economic trends and policies.
- Expert Opinions: Insights from economists, policy experts, and successful UPSC candidates on the budget's implications.
- Glossary of Budget Terms: Explanations of technical terms and concepts used in the budget document.
1.Agricultural Initiatives
The 2023-24 Union Budget allocated 1.52 Lakh Crore to agriculture and related sectors. Farmers will receive 109 new crop varieties that are both high-yielding and climate-resilient, covering 32 field and horticultural crops. The government aims to introduce 1 crore farmers to natural farming methods over two years and establish 10,000 bioinput research centers based on need. A Digital Public Infrastructure for agriculture will be implemented in partnership with states over three years, and Jan Samarth-based Kisan Credit cards will be made available in five states.
2. Employment and Skill Development
The budget set aside Rs 1.48 lakh crore for education, employment, and skill development. Five new schemes with a total outlay of Rs 2 lakh crores will be introduced to provide employment opportunities and benefits to 4.1 crore youth. Three employee-linked incentive programs are planned:
- The Section A program will offer a one-month salary as direct benefit transfer to first-time employees, potentially benefiting 210 lakh young people.
- The Section B focuses on job creation in manufacturing, aiming to assist 30 lakh new employees and their employers.
- The Section C is a cross-sector initiative to incentivize additional employment, expected to support 50 lakh individuals.
Educational Initiatives:
The government plans to support higher education by offering education loans of up to Rs10 lakh for students attending domestic institutions. Annual interest subsidies of 3% will be provided through e-vouchers to 100,000 students each year. Additionally, 1,000 industrial training institutes will undergo upgrades, and the model skill loan scheme will be revised to allow loans up to Rs. 7.5 lakh, potentially benefiting 25,000 students annually. New medical colleges and sports facilities are slated for construction in Bihar.
Women's Empowerment:
To boost women's participation in the workforce, the government has proposed several measures. These include setting up hostels for working women and providing childcare facilities. The plan also encompasses women-specific skill development programs and efforts to enhance market access for enterprises led by women's Self-Help Groups (SHGs).
A substantial allocation of over Rs 3 lakh crore has been made for schemes aimed at benefiting women and girls, underscoring the government's commitment to women-led development. Furthermore, the government is encouraging states to consider reducing stamp duty rates for property purchases made by women, as an additional measure to promote women's economic empowerment
3.Human Resource Development and Social Justice
Purvodaya
- Comprehensive Development Plan: This initiative focuses on the holistic development of the eastern region, encompassing Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. It aims to enhance human resources, infrastructure, and economic opportunities to transform the region into a driver of national development.
- Industrial Corridor: The Amritsar-Kolkata Industrial Corridor will include the establishment of an industrial node in Gaya.
- Road Connectivity Projects: Major projects include the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, spurs in Bodhgaya, Rajgir, Vaishali, and Darbhanga, and an additional two-lane bridge over the Ganga River at Buxar, with a total investment of ₹26,000 crore.
Andhra Pradesh Reorganization Act
- Financial Support: The government will provide special financial assistance through multilateral development agencies, starting with ₹15,000 crore in the current financial year, with more to follow. There is a strong commitment to funding and completing the Polavaram Irrigation Project. Additionally, funds will be allocated for essential infrastructure like water, power, railways, and roads in the Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor.
Pradhan Mantri Janjatiya Unnat Gram Abhiyan
- Tribal Community Development: This program aims to improve the socio-economic conditions of tribal communities, specifically targeting tribal-majority villages and aspirational districts.
North East Region
- Banking Expansion: Over 100 new branches of the India Post Payment Bank will be established in the North East Region
4. Manufacturing and Services
For MSMEs
- Support Package: A comprehensive package will be developed for MSMEs, including financing, regulatory reforms, and technological support to enhance their growth and global competitiveness.
- Credit Guarantee Scheme: A credit guarantee scheme for MSMEs in the manufacturing sector will be introduced, allowing the purchase of machinery and equipment without collateral or third-party guarantees. Additionally, a self-financing guarantee fund will offer up to ₹100 crore in guarantee cover per applicant.
- New Credit Assessment Model: Public sector banks will build internal capabilities to assess MSME creditworthiness, moving away from reliance on external assessments.
- Credit Support During Stress Periods: MSMEs in the 'special mention account' (SMA) stage will receive credit support to maintain operations and avoid transitioning into non-performing assets (NPA).
- Mudra Loan Enhancement: For entrepreneurs who have successfully repaid previous loans under the 'Tarun' category, the Mudra loan limit will be increased from ₹10 lakh to ₹20 lakh.
- TReDS Platform: The turnover threshold for mandatory onboarding on the TReDS platform will be reduced from ₹500 crore to ₹250 crore.
- SIDBI Expansion: SIDBI will open new branches to serve all major MSME clusters within three years, providing direct credit.
- Food Irradiation and Testing Labs: Financial support will be provided for establishing 50 multi-product food irradiation units and 100 food quality and safety testing labs with NABL accreditation.
- E-Commerce Export Hubs: Public-private partnership (PPP) mode e-commerce export hubs will be set up to help MSMEs and traditional artisans sell products internationally.
Promotion of Manufacturing & Services
- Youth Internships: One crore youth will receive internships in 500 top companies over five years, with companies covering training costs and 10% of the internship cost from CSR funds.
- Industrial Parks: Development of investment-ready "plug and play" industrial parks with complete infrastructure will be facilitated in or near 100 cities, in collaboration with states and the private sector, as part of the National Industrial Corridor Development Programme.
- Worker Housing: Rental housing with dormitory-type accommodations for industrial workers will be developed.
- Digital Public Infrastructure Applications: Proposed applications will cover credit, e-commerce, education, health, law and justice, logistics, MSME service delivery, and urban governance.
- Critical Mineral Mission: A mission for the domestic production, recycling, and overseas acquisition of critical minerals will be established.
- C-PACE Services: The Centre for Processing Accelerated Corporate Exit (C-PACE) services will be expanded.
- Offshore Mining Blocks: The government will launch the auction of the first tranche of offshore blocks for mining.
- Integrated Technology Platform: An integrated technology platform for the IBC ecosystem will be set up.
- IBC Reforms: Reforms to the Insolvency and Bankruptcy Code (IBC) and strengthening of tribunals and appellate tribunals will be initiated to expedite insolvency resolution
5. Urban Development
PM-AWAS Yojana Urban 2.0
- Housing for Urban Poor and Middle-Class Families: The PM Awas Yojana Urban 2.0 aims to address the housing needs of 1 crore urban poor and middle-class families with an investment of ₹10 lakh crore.
- Central Assistance: The scheme will receive ₹2.2 lakh crore in central aid over the next five years.
- Affordable Loan Interest Subsidies: A mechanism will be established to provide interest subsidies to encourage loans at affordable rates.
- Rental Housing Market Reforms: Laws and regulations will be introduced to promote efficient and transparent rental housing markets, increasing the supply of rental properties.
Water Supply and Sanitation
- Collaborative Projects: In partnership with state governments and multilateral development banks, the government will support water supply, sewage treatment, and solid waste management projects in 100 major cities through viable initiatives.
- Use of Treated Water: These initiatives will also include the use of treated water for irrigation and filling local tanks.
Street Markets
- Support for Street Vendors: Building on the success of the PM SVANidhi Scheme, the government plans to facilitate the establishment of 100 weekly haats or street food hubs over the next five years.
Stamp Duty
- Encouraging Moderate Stamp Duty Rates: States will be encouraged to continue charging moderate stamp duty rates and consider further reductions for properties purchased by women, forming a key part of urban development plans
6.Energy Security
Nuclear Energy
- Small and Modular Nuclear Reactors: The government will collaborate with the private sector to:
- Establish Bharat Small Reactors.
- Conduct research and development of Bharat Small Modular Reactors.
- Develop new technologies for nuclear energy.
Solar Power (PM Surya Ghar Muft Bijli Yojana)
- Rooftop Solar Plants: In line with the interim budget announcement, the PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, providing 1 crore homes with free electricity up to 300 units per month.
Pumped Storage Policy
- Electricity Storage Strategy: A policy will be formulated to promote pumped storage projects for electricity storage, ensuring the smooth integration of renewable energy into the overall energy mix despite its variability.
Advanced Ultra Super Critical Thermal Power Plants
- Indigenous Technology Development: A joint venture between NTPC and BHEL has developed indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants, leading to the creation of a full-scale 800 MW commercial plant.
- Economic Benefits: Developing indigenous capacity for producing high-grade steel and other advanced metallurgy materials for these plants will yield significant economic advantages.
Roadmap for 'Hard to Abate' Industries
- Emission Reduction Strategy: A strategy will be developed to transition 'hard to abate' industries from focusing solely on energy efficiency to achieving emission reduction objectives.
Support for Traditional Micro and Small Industries
- Energy Efficiency and Clean Energy Transition: Investment-grade energy audits will be conducted for traditional micro and small enterprises, such as brass and ceramic industries. Financial assistance will be provided to help these enterprises transition to cleaner energy sources and implement energy efficiency measures.
- Expansion to Additional Clusters: This strategy will be replicated in another 100 clusters in the next phase
According to the International Atomic Energy Agency (IAEA), Small Modular Reactors (SMRs) are advanced nuclear reactors with a power generation capacity ranging from under 30 MWe to over 300 MWe. Characteristics of SMRs:
SMRs encompass both small and medium-sized modular reactors, tailored to a country's specific context. Their SSCs (structures, systems, and components) are designed for factory production and site transportation, which helps to shorten construction timelines. This approach aims to achieve cost efficiency through serial production, allowing for the addition of power modules as demand increases
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7. Infrastructure
- Budget Allocation: The government has earmarked ₹11,11,111 crore for capital expenditure, which accounts for 3.4% of the GDP.
- Pradhan Mantri Gram Sadak Yojana (PMGSY): Phase IV of PMGSY will be launched to ensure all-weather connectivity for 25,000 rural habitations.
- Irrigation and Flood Control: Through the Accelerated Irrigation Benefit Programme and other funding sources, the government will support projects worth ₹11,500 crore, including the Kosi-Mechi intra-state link and 20 other ongoing and new schemes.
- Tourism: Development plans for the Vishnupad Temple in Gaya and the Mahabodhi Temple in Bodh Gaya, Bihar, will follow the model of the Kashi Vishwanath Temple Corridor to transform them into world-class pilgrimage and tourist destinations. Comprehensive development strategies for Rajgir and Nalanda in Bihar will be implemented, along with support for key destinations in Odisha
8. Innovation and Research & Development
- Basic Research and Prototyping: The government will operationalize the Anusandhan National Research Fund to support basic research and prototype development.
- Space Economy: To grow the space economy fivefold over the next decade, the government will establish a venture capital fund of ₹1,000 crore
9. Next Generation Reforms
Rural & Urban Land Reforms
- Unique Land Parcel Identification Number (ULPIN): All land parcels will be assigned a unique identifier, also known as Bhu-Aadhaar.
- Cadastral Map Digitization: Cadastral maps will be digitized.
- Survey of Sub-Divisions: Mapping of sub-divisions according to current ownership.
- Land Registry: Establishment of a comprehensive land registry.
- Farmers Registry Linkage: Land records will be linked to the farmers registry.
- Urban Land Records Digitization: Land records in urban areas will be digitized with GIS mapping.
Labour-Related Reforms
- e-Shram Portal Integration: A comprehensive integration of the e-Shram portal with other portals to provide a one-stop solution.
- Revamping Shram Suvidha and Samadhan Portals: Enhancements to these portals to improve compliance ease for industry and trade.
Climate Finance Taxonomy
- Development of Taxonomy: A taxonomy for climate finance will be developed to increase the availability of capital for climate adaptation and mitigation.
Foreign Direct Investment and Overseas Investment
- Simplification of Rules: The rules and regulations for FDI and overseas investments will be simplified to:
- Facilitate foreign direct investment.
- Encourage prioritization.
- Promote the use of the Indian Rupee for overseas investments.
NPS Vatsalya
- Contribution Plan for Minors: A plan will be introduced allowing parents and guardians to contribute to NPS for minors, which can seamlessly convert into a standard NPS account when the child reaches adulthood.
Ease of Doing Business
- Jan Vishwas Bill 2.0: The government is developing this bill to enhance the ease of doing business.
- State Incentives: States will be incentivized to implement their Business Reforms Action Plans and digitize processes.
New Pension Scheme (NPS)
- NPS Review: A committee reviewing the NPS has made significant progress, and a solution will be developed that addresses key issues while maintaining fiscal prudence to protect citizens
10. Tax-Related Proposals
Simplifying the New Tax Regime
- Revised Tax Rates: The new tax regime will include a revised tax rate structure.
Comprehensive Review of the Income Tax Act, 1961
- Review Announcement: Finance Minister Nirmala Sitharaman has announced a thorough review of the Income Tax Act, 1961. The aim is to make the Act more concise, clear, and user-friendly, reducing disputes and litigation while providing greater tax certainty for taxpayers. This review is expected to be completed within six months.
- Initial Simplifications: The Finance Bill will initiate simplifications in the tax regime for charities, the TDS rate structure, reassessment and search provisions, and capital gains taxation.
Angel Tax Abolishment
- Abolition Announcement: Union Minister Nirmala Sitharaman has declared the removal of angel tax on investors in India to support startups.
- Background on Angel Tax: Introduced in 2012 to prevent the use of unaccounted money in share subscriptions above the fair market value, the tax was expanded to include non-resident investors from April 1, 2024, which faced strong opposition from startups.
Litigation and Appeals
- Appeal Backlog: To address the backlog of first appeals, the government plans to deploy additional officers to handle and resolve these appeals, particularly those involving significant tax amounts.
- Dispute Resolution: The government is proposing the Vivad Se Vishwas Scheme, 2024, to resolve certain pending income tax disputes.
- International Taxation: To reduce litigation and ensure certainty in international taxation, the government will expand and enhance the attractiveness of safe harbour rules.
Deepening the Tax Base
- Increased Security Transactions Tax: The Security Transactions Tax on futures and options will be increased to 0.02% and 0.1%, respectively.
Other Major Proposals
- Equalization Levy: The 2% equalization levy will be withdrawn.
- Tax Benefits Expansion: Tax benefits will be extended to certain funds and entities in International Financial Services Centres (IFSCs).
- Benami Transactions: Immunity from penalty and prosecution will be provided to benamidars who fully and truthfully disclose transactions, aiming to improve convictions under the Benami Transactions (Prohibition) Act, 1988.
- Custom Duty Adjustments: Changes to custom duties will be introduced.
- Capital Gains Simplification: Efforts will be made to simplify and rationalize capital gains taxation
Basic Concepts regarding Union Budget
What is the Union Budget?
The Union Budget, formally referred to as the Annual Financial Statement under Article 112 of the Indian Constitution, provides a comprehensive overview of the government's financial status. It details the government's income from the previous year, its expenditures, any borrowing required to cover the deficit, and projections for the upcoming financial year. This includes anticipated revenue, planned spending, and expected borrowing needs. The Union Budget is divided into two main sections: Revenue and Capital.
Key Budget Documents
In addition to the Union Finance Minister’s Budget Speech, several essential documents are presented to Parliament:
- Constitutionally Mandated Documents:
- Annual Financial Statement (AFS): As required by Article 112.
- Demands for Grants (DG): As per Article 113.
- Finance Bill: Defined under Article 110.
- Documents Required by the Fiscal Responsibility and Budget Management Act, 2003:
- Macro-Economic Framework Statement
- Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
Important Budget Terms
- Revenue Budget: This includes the government's revenue receipts (both tax and non-tax) and revenue expenditures. Tax revenues are derived from taxes and duties imposed by the Union.
- Revenue Expenditure: This covers the regular expenses of government departments, interest payments on debt, subsidies, grants, etc. It is expenditure that does not create assets for the government.
- Capital Budget: This comprises capital receipts (loans raised by the government) and capital expenditures (investment in assets like land, buildings, machinery, and loans to various entities).
- Fiscal Deficit: This is the shortfall between the total revenue receipts (including non-debt capital receipts) and total expenditure, indicating the government's total borrowing requirements.
- Demands for Grants: According to Article 113, these are estimates of expenditure from the Consolidated Fund of India, which need to be approved by the Lok Sabha.
- Money Bill: As per Article 110, a Money Bill deals with taxes, borrowing by the government, and expenditure from the Consolidated Fund of India.
- Finance Bill: Presented alongside the Annual Financial Statement, this bill details proposed changes to tax laws. Unlike Money Bills, Finance Bills can incorporate recommendations from the Rajya Sabha, though the Lok Sabha is not obligated to accept them
KUKI TRIBE
2. Who are Kukis?
- The Kukis are an ethnic group including multiple tribes originally inhabiting the North-Eastern states of India such as Manipur, Mizoram and Assam; parts of Burma (now Myanmar), and Sylhet district and Chittagong hill tracts of Bangladesh.
- While Kuki is not a term coined by the ethnic group itself, the tribes associated with it came to be generically called Kuki under colonial rule.
- In Manipur, the various Kuki tribes, living mainly in the hills, currently make up 30% of the total 28.5 lakh population of the State.
- The rest of the population of Manipur is made up mainly of two other ethnic groups: the Meiteis or non-tribal, Vaishnavite Hindus who live in the valley region of Manipur, and the Naga tribes, historically at loggerheads with the Kukis, also living in the hilly areas of the State.
- Of the 60 seats in the Manipur Assembly, 40 are held by Meiteis and the rest 20 seats are held by Kukis and Nagas.
- The people of Manipur are grouped into three main ethnic communities Meiteis those inhabiting the valley and 29 major tribes in the hills dividing into two main ethno denominations, namely Nagas and Kuki-Chins.
3. Which are the major communities residing in Manipur?
The major communities residing in Manipur are:
Meiteis
- The Meiteis, also known as Manipuris, are the largest and dominant ethnic group in Manipur, constituting around 53% of the state's population.
- They primarily inhabit the Imphal Valley, the central valley region of Manipur.
- Their language, Meitei (officially called Manipuri), is the sole official language of the state and one of the 22 official languages of India.
- The Meiteis have a rich cultural heritage, with unique traditions, dance forms like Manipuri Raas Leela and various festivals, including Yaoshang and Kang Chingba.
- The majority of Meiteis follow Hinduism, with a mix of indigenous beliefs. The cultural identity of Meiteis has played a significant role in shaping the history and politics of Manipur.
Naga Tribes
- Various Naga tribes collectively form the second-largest community in Manipur, representing about 24% of the population.
- Some prominent Naga tribes include Tangkhul, Mao, Maram, Zeme, and Kabui.
- They primarily reside in the northern hilly regions of Manipur.
- Each Naga tribe has its own distinct language and culture, with rich traditions, festivals, and attire.
- Their villages are spread across the hills, and each tribe has its own traditional governance system.
Kuki/Zo Tribes
- The Kuki/Zo tribes are the third largest community in Manipur, constituting about 16% of the population.
- Some prominent Kuki/Zo tribes include Thadou, Gangte, Hmar, Paite, and Simte.
- They primarily reside in the southern hilly regions of Manipur.
- Similar to the Naga tribes, each Kuki/Zo tribe has its own distinct language, culture, and traditions.
- While some Kuki groups follow traditional indigenous religions, a significant number have adopted Christianity, introduced by missionaries during the British colonial period.
- Pangals (Manipuri Muslims): The Pangals are Meiteis who converted to Islam, forming the Muslim community in Manipur. They have a unique cultural identity that combines elements of Meitei culture with Islamic traditions. Pangals are spread across the state, and they have contributed to the socio-cultural fabric of Manipur.
- Mizos: While the majority of Mizos reside in the neighbouring state of Mizoram, there is a Mizo population in the Churachandpur district of Manipur. They are part of the larger Mizo community.
- Monsangs (Monsang Naga): The Monsangs are a Naga tribe residing in the northeastern part of Manipur, particularly in Tamenglong district. They have their distinct language and cultural practices.
- Zeliangrongs (Zeliangrong Naga): The Zeliangrongs are a Naga tribe comprising three major communities: Zeme, Liangmei, and Rongmei. They mainly inhabit the hills of Tamenglong district.
- Kom/Komrem: The Kom people are one of the indigenous communities in Manipur, residing primarily in the northeastern part of the state.
- Mao (Mao Naga): The Mao Naga community is one of the Naga tribes in Manipur, with a significant population in the Senapati district.
- Gangtes: The Gangte community is a Kuki-Chin-Mizo ethnic group residing in the hills of Manipur.
- Hmars: The Hmars are a Kuki-Chin-Mizo ethnic group with a presence in Manipur, especially in the Churachandpur district.
4. Reasons for the Meitei community wants ST status
The Meitei community, the dominant group in Manipur, has been demanding Scheduled Tribe (ST) status for over a decade. Several factors contribute to this demand, and the debate surrounding it is complex and multi-faceted.
Historical Factors
- The Meiteis argue that they were historically recognized as a tribe by the British during colonial rule. Some historical documents indicate the inclusion of Meiteis in the list of "semi-Hinduized tribes" or "hill tribes." However, others assert that they were classified as a caste or a martial race depending on context.
- They claim that after the merger of Manipur with India in 1949, they lost their tribal status and the associated benefits, such as reservations in education and government jobs. This, they argue, led to their marginalization compared to other ST communities.
Socio-Economic Conditions
- The Meiteis argue that despite being the largest ethnic group, they lag behind other ST communities in terms of socio-economic development. They face issues like poverty, unemployment, and lack of access to quality education and healthcare.
- Some Meiteis, particularly those residing in the hills, feel they are disadvantaged in terms of land ownership compared to other tribes. They believe ST status would enable them to better protect their ancestral land rights.
Cultural Preservation: The Meiteis argue that their culture, language (Manipuri), and traditions are distinct from those of other communities in Manipur. They believe ST status would provide them with constitutional safeguards to preserve their unique identity and heritage.
5. Reasons for the Kuki group opposing
The issue of Meiteis seeking Scheduled Tribe (ST) status in Manipur is intricately woven with opposition from the Kuki community, primarily comprised of various Kuki-Zo tribes. Here are some key reasons behind their resistance:
- Kukis fear that granting ST status to the Meiteis, who already constitute a dominant majority, could dilute the existing benefits and resources allocated to their own community. This includes reservations in education, government jobs, and other opportunities reserved for ST communities.
- Many Kukis believe that Meiteis, with their historical and political prominence, may not meet the true criteria for ST status based on socio-economic backwardness compared to other marginalized tribal groups. They worry that granting them similar benefits could create an unfair advantage and disrupt the existing balance of power and resources among various communities in Manipur.
- Complex historical relationships between the Meiteis and some Kuki tribes continue to influence the present. Past conflicts and land disputes have left scars, and granting ST status to the Meiteis could be perceived as further empowering them at the expense of Kuki communities.
- While Meiteis emphasize their historical tribal recognition and claim marginalization after losing ST status, Kukis often assert that Meiteis were never truly tribals and enjoyed advantages throughout history. This clashing of narratives makes it difficult to find common ground and fuels further scepticism toward the Meiteis' claims.
- The issue has become politicized, with various political parties aligning with different communities based on their constituencies. This politicization further complicates the debate and may prioritize political gains over objective considerations.
- Some Kukis express concern that granting ST status to Meiteis might lead to a homogenization of tribal identity and culture in Manipur. They fear that their own unique tribal identity and customs could be overshadowed by the larger Meitei community.
- For some Kuki groups residing in the hills, granting ST status to Meiteis might create potential conflicts over land ownership and ancestral rights. They worry that Meiteis could gain legal advantages concerning land claims in tribal areas.
6. The Way Forward
The debate surrounding Meiteis' ST status is complex, with valid concerns and historical considerations on both sides. Finding a solution requires understanding these complexities, fostering open dialogue, and prioritizing the well-being of all communities while ensuring social justice and upholding constitutional principles.
For Prelims: Kuki, Naga, Meiteis, ST, Manipur
For Mains:
1. Discuss the potential political implications of granting ST status to the Meitei community in Manipur. How might it impact the power dynamics between different ethnic groups and political parties in the state? (250 Words)
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Previous Year Questions 1. Which of the following is NOT correctly matched? (UPPSC BEO 2020) (Revolts) (Years) A. Neel Rebellion 1859-60 B. Jaintia Rebellion 1860-63 C. Kuki Rebellion 1860-90 D. Kuka Revolt 1870-72 A. Neel Rebellion B. Kuki Revellion C. Kuka Revolt D. Jaintiya Rebellion
2. Which two of the following are correctly matched? (UPPSC 2022) Tribe State 1. Kharia Odisha 2. Kuki Uttar Pradesh 3. Yanadi Rajasthan 4. Paliyan Tamil Nadu Select the correct answer from the codes given below. A. 3 and 4 B. 1 and 4 C. 2 and 3 D. 1 and 2 Answers: 1-B, 2-B |
Source: The Indian Express
ANAEMIA MUKT BHARAT (AMB)
2. About Anaemia Mukt Bharat (AMB)
Anaemia Mukt Bharat (AMB), launched in 2018 by the Government of India, aims to reduce the prevalence of anaemia among women, children, and adolescents. To Reduce the prevalence of anaemia among all six target groups by 3 percentage points per year between 2018 and 2022. Achieve a national prevalence of anaemia below 5% by 2030.
2.1. The key features of Anaemia Mukt Bharat (AMB)
Target Beneficiaries
Interventions
- Iron and folic acid supplementation: Biweekly 1 ml syrup for children, weekly tablets for adolescents and adults.
- Intensified Behaviour Change Communication (BCC): Raising awareness about anaemia, its causes, and preventive measures.
- Dietary diversification: Promoting consumption of iron-rich foods and micronutrient-rich fruits and vegetables.
- Deworming: Addressing intestinal worm infections that can contribute to anaemia.
- Management of pregnant women: Early registration, antenatal checkups, iron and folic acid supplementation, nutritional counselling.
- Testing and Treatment: Early diagnosis and management of anaemia through haemoglobin testing and treatment with iron-folic acid or other appropriate interventions.
Institutional Mechanisms
- Mission Convergence: Collaboration between various ministries and departments.
- Convergence at the State and District Level: Coordinating efforts through State Nutrition Missions and District Nutrition Action Plans.
- Strengthening Community Participation: Engaging local communities through Anganwadi workers, ASHAs, and others.
- Monitoring and Evaluation: Regular data collection and analysis to track progress and identify areas for improvement.
- Capacity Building: Training healthcare workers and other stakeholders on anaemia prevention and management.
- Innovation and Technology: Utilizing technology for data management, communication, and monitoring.

- The program follows a "6X6X6" strategy, targeting six beneficiary groups with six interventions through six institutional mechanisms.
- AMB focuses on a life cycle approach, addressing anaemia across different stages of life from childhood to adulthood.
- The program prioritises prevention through preventive IFA supplementation and behaviour change communication.
- AMB aims to reduce the prevalence of anaemia by 3 percentage points per year across target groups.
- The program allows for customisation of interventions based on local needs and contexts.
- AMB encourages community involvement in program implementation and monitoring.
- The program utilises digital tools for data collection, monitoring, and communication.
2.2. Challenges faced by Anaemia Mukt Bharat (AMB)
Despite its comprehensive approach, Anaemia Mukt Bharat (AMB) faces various challenges in achieving its goals.
Implementation
- Shortages of healthcare workers, especially in rural areas, can hinder program implementation and access to services.
- Ensuring regular and timely availability of iron-folic acid supplements and other essential supplies across the country remains a challenge.
- Lack of awareness and active participation from communities can hinder behaviour change and the adoption of preventive measures.
- Seamless integration of AMB with existing health initiatives like Anganwadi services and National Health Mission programs is crucial for optimal impact.
Programmatic challenges
- AMB primarily focuses on nutritional interventions but needs to address other causes like malaria, parasitic infections, and hemoglobinopathies.
- Ensuring adherence to iron-folic acid supplementation schedules among beneficiaries can be difficult due to various factors.
- Promoting consumption of iron-rich and micronutrient-rich foods requires tackling affordability, accessibility, and cultural preferences.
- Ensuring accurate and timely data collection and analysis is crucial for tracking progress and identifying gaps.
Sustainability and long-term impact
- The program relies heavily on government funding and ensuring long-term financial sustainability is critical.
- Factors like poverty, sanitation, and lack of education can contribute to anaemia and require broader interventions.
- Continuous training and capacity building of healthcare workers and community leaders are essential for sustained program effectiveness.
- Collaboration with private sector players and civil society organizations can leverage additional resources and expertise.
3. What is wasting and stunting?
Wasting and stunting are terminologies used in the context of child malnutrition and growth assessment. They refer to different forms of undernutrition and indicate distinct aspects of a child's nutritional status.
Wasting
- Wasting is a form of acute malnutrition characterized by rapid weight loss or a failure to gain weight at the expected rate for a child's age.
- It is typically assessed by measuring a child's weight about their height. A child is considered wasted if their weight-for-height is significantly below the established standards.
- Wasting is indicative of recent and severe nutritional deficiency, often resulting from acute food shortage, illness, or other factors leading to a rapid decline in nutritional status.
- Wasted children are at an increased risk of mortality and are generally more susceptible to infections and illnesses due to the compromised immune system.
Stunting
- Stunting is a form of chronic malnutrition characterized by impaired growth and development resulting in short stature for a child's age.
- It is assessed by comparing a child's height to the established height-for-age standards. A child is considered stunted if their height-for-age is significantly below the reference values.
- Stunting reflects long-term nutritional deprivation, often starting in utero or during the early years of life. It is an indicator of persistent inadequate nutrition and chronic health issues.
- Stunted children may experience cognitive and developmental delays, reduced physical capabilities, and increased susceptibility to various health problems. Stunting is associated with long-term consequences that can affect the individual's well-being into adulthood.
4. What are the Various forms of malnutrition?
Malnutrition is a condition that results from an inadequate or imbalanced intake of nutrients, leading to health problems. There are several forms of malnutrition, each with its specific characteristics. The major forms of malnutrition include:
Undernutrition
- Stunting is characterized by impaired growth and development, leading to short stature for a child's age. It indicates chronic malnutrition and is associated with long-term health and developmental issues.
- Wasting involves a rapid weight loss or failure to gain weight at the expected rate for a child's age. It is a sign of acute malnutrition and is associated with increased vulnerability to infections and higher mortality risk.
- Underweight is a composite measure reflecting a child's weight about their age. It considers both stunting and wasting and provides an overall assessment of undernutrition.
Micronutrient Deficiency
- Iron Deficiency Anemia Results from insufficient iron intake, leading to reduced production of haemoglobin and impaired oxygen transport in the blood.
- Vitamin A Deficiency Can cause night blindness, increase susceptibility to infections, and negatively impact vision and immune function.
- Iodine Deficiency Disorder (IDD) is a Lack of iodine can lead to goitre, mental retardation, and other developmental issues.
Overnutrition
Protein-Energy Malnutrition (PEM)
- Kwashiorkor is A type of PEM characterized by protein deficiency, leading to oedema (fluid retention), skin lesions, and impaired growth.
- Marasmus is Another type of PEM characterized by severe energy deficiency, resulting in emaciation, muscle wasting, and overall body weakness.
Eating Disorders
- Anorexia Nervosa involves an extreme fear of gaining weight, leading to self-imposed starvation and excessive weight loss.
- Bulimia Nervosa is characterized by episodes of overeating followed by compensatory behaviours such as vomiting or excessive exercise.
Hidden Hunger
The difference between hunger and nutrition
Features | Hunger | Nutrition |
Definition | Physiological sensation caused by a lack of food. | Intake and utilization of nutrients for health and well-being. |
Immediate Need | Immediate response to an empty stomach or nutrient deficiency. | Broader focus on long-term health and growth. |
Short-Term Focus | Addresses short-term need for caloric intake. | Focuses on the quality and variety of food over time. |
Quantitative Aspect | Often associated with the quantity of food consumed. | Emphasizes qualitative aspects of food and nutrient content. |
Time Horizon | Short-term response to the immediate need for food. | Long-term focus on overall health and well-being. |
Scope | Limited to the immediate physiological need for calories. | Extends to essential nutrients required for overall health. |
Quantitative vs. Qualitative | Emphasizes the quantity of food needed. | Emphasizes the quality and composition of the diet. |
Survival vs. Thriving | Associated with survival and basic energy needs. |
Aims at optimal growth, development, and disease prevention. |
6. The beneficiaries of the Integrated Child Development Service (ICDS) Scheme
The Integrated Child Development Services (ICDS) Scheme in India primarily targets the holistic development of children under the age of six and pregnant and lactating mothers. The beneficiaries under the ICDS Scheme include:
- Children (0-6 years): The primary focus of the ICDS is on young children, especially those in the age group of 0 to 6 years. The services aim to provide a package of six services, including supplementary nutrition, immunization, health check-ups, referral services, pre-school non-formal education, and nutrition and health education.
- Pregnant Women: Pregnant women are among the beneficiaries as the scheme aims to ensure their well-being during pregnancy. This includes providing nutritional support, health check-ups, and awareness of maternal and child health.
- Lactating Mothers: The ICDS Scheme extends its services to lactating mothers to promote proper nutrition and health during the breastfeeding period. It includes support for the mother's health, nutrition, and breastfeeding practices.
- Adolescent Girls: Some components of the ICDS Scheme also target adolescent girls, addressing their nutritional needs and providing awareness about health and hygiene.
The ICDS Scheme operates through Anganwadi Centers, which are community-based centres providing these services at the grassroots level. The services offered aim to break the cycle of malnutrition and ensure the overall well-being and development of children in their early years.
7. The Way Forward
Anaemia Mukt Bharat plays a crucial role in addressing anaemia in India. Understanding different forms of malnutrition and its distinction from hunger is essential for promoting healthy eating habits and overall well-being.
For Prelims: Anaemia Mukt Bharat, Malnutrition, Integrated Child Development Services, Iron Deficiency, Vitamin Deficiency For Mains:
1. Critically examine the strengths and weaknesses of Anaemia Mukt Bharat (AMB) in addressing anaemia in India. Suggest measures to improve its effectiveness in achieving its target of reducing anaemia prevalence to below 5% by 2030. (250 words)
2. The Integrated Child Development Services (ICDS) scheme plays a vital role in early childhood development and nutrition interventions. Discuss the specific contributions of ICDS in addressing anaemia among children and pregnant women. (250 words)
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Previous Year Questions 1. Consider the following statements in the context of interventions being undertaken under Anaemia Mukt Bharat Strategy: (UPSC 2023) 1. It provides prophylactic calcium supplementation for pre-school children, adolescents and pregnant -women.
2. It runs a campaign for delayed cord clamping at the time of child-birth.
3. It provides for periodic deworming to children and adolescents.
4. It addresses non-nutritional causes of anaemia in endemic pockets with special focus on malaria, hemoglobinopathies and fluorosis.
How many of the statements given above are correct? A. Only one B. Only two C. Only three D. All four
2. Which of the following are the objectives of 'National Nutrition Mission'? (UPSC 2017) 1. To create awareness relating to malnutrition among pregnant women and lactating mothers. 2. To reduce the incidence of anaemia among young children, adolescent girls, and women.
3. To promote the consumption of millets, coarse cereals, and unpolished rice.
4. To promote the consumption of poultry eggs.
Select the correct answer using the code given below: A. 1 and 2 only B. 1, 2 and 3 only C. 1, 2 and 4 only D. 3 and 4 only
3. Read the following passage and answer the questions that follow. Your answers to these items should be based on the passage only. India is among the fastest-growing global economies and home to the largest number of malnourished children in the world. There are regions where malnutrition is not the exception but the norm. And across the country, malnutrition is the cause of death for roughly half the 1.3 million children who die before their fifth birthday each year. Even those children who survive suffer permanently from the damage that has already been done to their bodies and minds from not getting enough of the right foods and nutrients. Around 44 million children under 5 are stunted. That makes it harder for them to learn in school and subsequently earn a living as adults. Their lifetime earnings potential is almost a quarter less than that of their healthy peers. With reference to the above passage, which of the following is/are the most rational and practical implication/implications? (UPSC 2020) 1. India's Public Distribution System should be monitored by the Union Government. 2. Girls should be encouraged to delay marriage and first pregnancy. 3. Mothers should be encouraged to breastfeed their children immediately after birth. 4. The supply of safe drinking water and proper sanitation facilities to all should be ensured. 5. Authorities should ensure the vaccination as prescribed. Select the correct answer using the code given below. A. 1, 2, 3 and 4 B. 2, 3, 4 and 5 C. 1 only D. 3 and 5 only 4. Integrated Child Development services (ICDS), launched in 1975 in India, is a scheme implemented by (Jharkhand Civil Service 2015) A. the Ministry of Education
B. the Ministry of HRD
C. the Ministry of Finance
D. the Ministry of Women and Child Development
5. Which disease is caused due to deficiency of Iron? (SSC GD Constable 2023) (Soldier Tradesman 2020) A. Beriberi B. Tetany C. Kwashiorkor D. Anaemia
6. Consider the following pairs: (UPSC 2014) Vitamin Deficiency disease 1. Vitamin C Scurvy 2. Vitamin D Rickets 3. Vitamin E Night blindness Which of the pairs given above is/are correctly matched? A. 1 and 2 only B. 3 only C. 1, 2 and 3 D. None Answers: 1-C, 2-A, 3-B, 4-D, 5-D, 6-A Mains 1. Public health system has limitations in providing universal health coverage. Do you think that private sector could help in bridging the gap? What other viable alternatives would you suggest? (UPSC 2015) |
Source: The Indian Express
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. How is Food Inflation measured in India?
Food inflation in India is measured using various indices and indicators. The primary indices used to measure food inflation in India include the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Both indices provide insights into the overall price movements of goods and services, including food items, but they differ in terms of their coverage and methodology.
Consumer Price Index (CPI)
- The CPI is a key indicator used by the Government of India and the Reserve Bank of India (RBI) to monitor inflation, including food inflation.
- The CPI measures the average change over time in the prices paid by urban and rural consumers for a basket of goods and services, including food items, housing, clothing, transportation, and more.
- Within the CPI, food and beverages form a significant component, and food inflation is specifically derived from the changes in food prices within the CPI basket.
- The CPI is released monthly by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation.
Wholesale Price Index (WPI)
- The WPI is another important index that tracks price changes at the wholesale level for a selected group of commodities, including food products, manufactured goods, fuel, and more.
- The WPI measures price changes from the perspective of producers and wholesalers, providing insights into inflationary pressures in the production and distribution stages.
- Food articles, such as cereals, pulses, vegetables, fruits, and edible oils, are included in the WPI basket for monitoring food inflation.
- The WPI is released weekly by the Office of Economic Adviser under the Ministry of Commerce and Industry.
In addition to these indices, other indicators such as the Food Sub-Index within the CPI and specific price indices for essential food items (like vegetables, pulses, and cereals) are also used to gauge food inflation more accurately. The RBI closely monitors food inflation trends as part of its monetary policy framework to make informed decisions regarding interest rates and economic stability. Overall, the combination of CPI, WPI, and specific food-related indices provides a comprehensive assessment of food inflation in India.
4. Headline and Core Inflation
Inflation is a key economic indicator that measures the rate at which prices of goods and services rise over time. In India, two important measures of inflation are headline inflation and core inflation.
- Headline Inflation: Headline inflation refers to the overall rate of inflation in an economy, taking into account the price changes across all goods and services included in the consumer basket. It reflects the broad-based movement in prices, including food, fuel, housing, transportation, and other essential and non-essential items. Headline inflation is typically measured using indices such as the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Fluctuations in headline inflation can be influenced by various factors, including changes in global commodity prices, government policies, supply chain disruptions, and demand-side pressures.
- Core Inflation: Core inflation, on the other hand, excludes volatile items such as food and energy from the basket of goods used to calculate inflation. By excluding these volatile components, core inflation provides a more stable measure of underlying inflationary trends in the economy. Core inflation is often considered a better gauge of long-term inflationary pressures and helps policymakers in making informed decisions regarding monetary policy. The Reserve Bank of India (RBI), for example, closely monitors core inflation to assess the underlying inflationary trends and formulate appropriate monetary policy responses.
Understanding the distinction between headline and core inflation is essential for policymakers, businesses, and consumers alike. While headline inflation provides a comprehensive view of overall price movements, core inflation offers insights into the underlying inflationary pressures, helping to distinguish between temporary fluctuations and sustained inflation trends. By closely monitoring both measures of inflation, policymakers can effectively manage inflationary risks and maintain price stability, contributing to sustainable economic growth and stability.
5. Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is a crucial institutional framework established by the Reserve Bank of India (RBI) to formulate and implement monetary policy decisions in India.
Role
- Formulating Monetary Policy: The primary role of the MPC is to formulate and implement monetary policy in India. This includes setting the key policy interest rates, such as the repo rate, reverse repo rate, and marginal standing facility (MSF) rate, to achieve the objectives of price stability and economic growth.
- Targeting Inflation: The MPC's main objective is to maintain price stability, which is primarily achieved by targeting a specific inflation rate. In India, the RBI has adopted a flexible inflation targeting framework, where the MPC aims to keep the Consumer Price Index (CPI) inflation within a specified target range over the medium term. Currently, the inflation target is set at 4% with a tolerance band of +/- 2%.
- Evaluating Economic Conditions: The MPC assesses various economic indicators, such as GDP growth, inflation expectations, fiscal policy measures, global economic developments, and financial market conditions, to make informed decisions about monetary policy.
- Communication: The MPC communicates its monetary policy decisions, rationale, and outlook for the economy through periodic press releases, statements, and the publication of meeting minutes. This transparency enhances predictability and credibility in monetary policy.
Composition
- Members: The MPC consists of six members, including three members nominated by the Government of India and three members from the Reserve Bank of India. The Governor of the RBI serves as the ex-officio Chairperson of the MPC.
- Appointment: The members of the MPC are appointed by the Central Government based on their expertise and experience in economics, banking, finance, or related fields. The RBI Governor and Deputy Governor (in charge of monetary policy) are automatic members of the MPC.
- Voting Rights: Each member of the MPC, including the RBI Governor, has one vote in the decision-making process. Decisions are made by a majority vote, with the Governor having the casting vote in case of a tie.
- Terms: Members of the MPC serve fixed terms, typically for four years, with eligibility for reappointment. This ensures continuity and stability in monetary policy formulation.
6. The Way Forward
By implementing the measures and fostering collaborative efforts among policymakers, regulators, and stakeholders, India can effectively manage inflationary pressures, maintain price stability, and promote sustainable economic growth and development.
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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