RETAIL INFLATION
1. Context
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
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
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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LINE OF ACTUAL CONTROL (LAC)
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The eastern sector which spans Arunachal Pradesh and Sikkim,
The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh
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- The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
- This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
- The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
- The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
- In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
- After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
- During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
- India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’
- LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC.
- India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
- The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
- To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC
The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.
The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.
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For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh |
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Previous Year Questions 1.The Line of Actual Control (LAC) separates (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D) |
GROSS DOMESTIC PRODUCT (GDP)
There are three primary ways to calculate GDP:
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Production Approach (GDP by Production): This approach calculates GDP by adding up the value-added at each stage of production. It involves summing up the value of all final goods and services produced in an economy.
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Income Approach (GDP by Income): This approach calculates GDP by summing up all the incomes earned in an economy, including wages, rents, interests, and profits. The idea is that all the income generated in an economy must ultimately be spent on purchasing goods and services.
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Expenditure Approach (GDP by Expenditure): This approach calculates GDP by summing up all the expenditures made on final goods and services. It includes consumption by households, investments by businesses, government spending, and net exports (exports minus imports).
3. Measuring GDP
GDP can be measured in three different ways:
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Nominal GDP: This is the raw GDP figure without adjusting for inflation. It reflects the total value of goods and services produced at current prices.
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Real GDP: Real GDP adjusts the nominal GDP for inflation, allowing for a more accurate comparison of economic performance over time. It represents the value of goods and services produced using constant prices from a specific base year.
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GDP per capita: This is the GDP divided by the population of a country. It provides a per-person measure of economic output and can be useful for comparing the relative economic well-being of different countries.
The GDP is a useful measure of economic health, but it has some limitations. For example, it does not take into account the distribution of income in an economy. It also does not take into account the quality of goods and services produced.
Despite its limitations, the GDP is a widely used measure of economic health. It is used by economists, policymakers, and businesses to track the performance of an economy and to make decisions about economic policy
4. Gross Value Added (GVA)
Gross Value Added (GVA) is a closely related concept to Gross Domestic Product (GDP) and is used to measure the economic value generated by various economic activities within a country. GVA represents the value of goods and services produced in an economy minus the value of inputs (such as raw materials and intermediate goods) used in production. It's a way to measure the contribution of each individual sector or industry to the overall economy.
GVA can be calculated using the production approach, similar to one of the methods used to calculate GDP. The formula for calculating GVA is as follows:
GVA = Output Value - Intermediate Consumption
Where:
- Output Value: The total value of goods and services produced by an industry or sector.
- Intermediate Consumption: The value of inputs used in the production process, including raw materials, energy, and other intermediate goods.
Gross Domestic Product (GDP) and Gross National Product (GNP) are both important economic indicators used to measure the size and health of an economy, but they focus on slightly different aspects of economic activity and include different factors. Here are the key differences between GDP and GNP:
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Definition and Scope:
- GDP: GDP measures the total value of all goods and services produced within a country's borders, regardless of whether the production is done by domestic or foreign entities. It only considers economic activities that take place within the country.
- GNP: GNP measures the total value of all goods and services produced by a country's residents, whether they are located within the country's borders or abroad. It takes into account the production of residents, both domestically and internationally.
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Foreign Income and Payments:
- GDP: GDP does not consider the income earned by residents of a country from their economic activities abroad, nor does it account for payments made to foreigners working within the country.
- GNP: GNP includes the income earned by a country's residents from their investments and activities abroad, minus the income earned by foreign residents from their investments within the country.
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Net Factor Income from Abroad:
- GDP: GDP does not account for net factor income from abroad, which is the difference between income earned by domestic residents abroad and income earned by foreign residents domestically.
- GNP: GNP includes net factor income from abroad as part of its calculation.
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Foreign Direct Investment:
- GDP: GDP does not directly consider foreign direct investment (FDI) flowing into or out of a country.
- GNP: GNP considers the impact of FDI on the income of a country's residents, both from investments made within the country and from investments made by residents abroad.
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Measurement Approach:
- GDP: GDP can be calculated using three different approaches: production, income, and expenditure approaches.
- GNP: GNP is primarily calculated using the income approach, as it focuses on the income earned by residents from their economic activities.
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For Prelims: GDP, GVA, FDI, GNP
For Mains: 1.Discuss the recent trends and challenges in India's GDP growth
2.Examine the role of the service sector in India's GDP growth
3.Compare and contrast the growth trajectories of India's GDP and GNP
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Previous Year Questions
1.With reference to Indian economy, consider the following statements: (UPSC CSE, 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade. 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer (b)
2.A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC CSE, 2015) 1. Slowing economic growth rate 2. Less equitable distribution of national income Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer (a)
Previous year UPSC Mains Question Covering similar theme: Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC CSE GS3, 2020) Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC CSE GS3, 2021) |
INDEX OF INDUSTRIAL PRODUCTION (IIP)
1. Context
Industrial output growth quickened to an eight-month high of 5% in January on expansion in manufacturing and mining sectors, according to data from the National Statistics Office (NSO) released .The Index of Industrial Production (IIP) had come in at 3.55 in December
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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DANDI MARCH
- On April 6, 1930, Mahatma Gandhi and his followers openly defied the British salt law by producing salt from seawater. Speaking to a Free Press representative, Gandhi asserted, "With this, I am shaking the foundations of the British Empire."
- This act of defiance ignited a widespread movement across rural India, leading to the arrest of approximately 60,000 individuals. According to the Gandhismriti website, Jawaharlal Nehru, Mahadev Desai, and Gandhi’s son Devdas were among the first to be imprisoned.
- In response, the British government declared the Indian National Congress illegal. Gandhi informed the Viceroy of his intention to march towards the Dharasana Salt Works, but before he could proceed, he was detained and sent to Yeravda Central Jail
- Following Gandhi’s arrest, the leadership of the Dharasana march was taken over by Abbas Tyabji, who was subsequently arrested. Sarojini Naidu then led the march but encountered severe police violence.
- An American journalist, Miller, reported that the police struck the marchers with steel-tipped batons, yet none of them retaliated or even raised an arm in defense. Instead, they fell one after another like dominoes
- The movement rapidly spread to different regions of India. Numerous colonial laws were violated, and people engaged in boycotts of foreign cloth and liquor. The Salt Satyagraha soon evolved into a broader civil disobedience movement.
- In Bengal, activists led by Satish Chandra Dasgupta walked from Sodepur Ashram to Mahisbathan to make salt. In Bombay, K.F. Nariman led a group to Haji Ali Point, where they prepared salt in a nearby park.
- Additionally, in raiyatwari regions, resistance took the form of refusing to pay the village police (chowkidari) tax and withholding rent. Violent clashes with law enforcement occurred, along with large-scale tribal incursions into forest areas in Maharashtra, Karnataka, and the Central Provinces
- In the North-West Frontier Province (NWFP), Khan Abdul Ghaffar Khan, widely known as the Frontier Gandhi, organized a non-violent volunteer force called the Khudai Khidmatgars (Red Shirts), who played a crucial role in the movement.
- The volunteers briefly took control of a town, but the British swiftly regained it, unleashing severe repression. Despite the violence, the Red Shirts adhered to their commitment to non-violence.
- Meanwhile, in Chittagong, a revolutionary group led by Surya Sen launched an attack against the British. They captured the local armory and declared independence under the name "Independent Republican Army." A fierce battle ensued at Jalalabad Hill, resulting in the deaths of several revolutionaries.
- In Tamil Nadu, C. Rajagopalachari spearheaded the Civil Disobedience Movement, organizing a march from Trichinopoly to Vedaranniyam on the Tanjore coast in April 1930 to challenge the salt law. This movement was followed by picketing of foreign cloth stores and anti-liquor campaigns.
- In Malabar, the salt march was led by Nair Congress leader Kelappan, while in Orissa, the movement was directed by Gopabandhu Chaudhary. Similarly, in Bihar, prominent leaders such as Ram Briksha Benipuri, Prof. Abdul Bari, and Acharya Kripalani took charge of the The British-imposed Salt Act of 1882 granted them exclusive control over salt production and distribution.
- Despite India's vast coastal resources, Indians were compelled to purchase salt from British authorities. Recognizing its fundamental importance to every Indian, Gandhi identified salt as the ideal symbol for launching mass civil disobedience against colonial rule
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On January 31, 1930, Mahatma Gandhi presented Lord Irwin with an 11-point charter of demands. These included enforcing total prohibition, adjusting the exchange ratio, cutting land revenue by 50%, eliminating the salt tax, reducing military expenses, lowering the salaries of top government officials, imposing a protective tariff on foreign cloth, passing the Coastal Traffic Reservation Bill, releasing all political prisoners except those convicted of murder, disbanding the Criminal Investigation Department (C.I.D.), and granting firearm licenses for self-defense.
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Since Irwin showed no willingness to address these demands, Gandhi launched the historic Dandi March. Subsequently, on January 25, 1931, Viceroy Irwin announced the unconditional release of Gandhi and other Congress leaders to pave the way for discussions.
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The Gandhi-Irwin Pact, also known as the Delhi Pact, was formalized on March 5, 1931. This agreement led to the release of political prisoners not involved in violent crimes, remission of fines, and restitution of confiscated lands. Government employees who had resigned during the movement were treated leniently. In return, the Congress agreed to withdraw the Civil Disobedience Movement and participate in the Second Round Table Conference later that year
- Imports from Britain saw a significant decline, with textile imports, in particular, being reduced by half. This movement had a broader reach than its predecessors, witnessing large-scale participation from diverse sections of society, including women, peasants, workers, students, and urban groups such as merchants and shopkeepers. This extensive involvement elevated the Congress to an all-India status.
- The support from both the poor and the illiterate, in both rural and urban areas, was extraordinary. For Indian women, the movement proved to be a transformative experience, marking their active participation in public life for the first time.
- Although the Congress officially ended the Civil Disobedience Movement in 1934, its impact was far-reaching. The movement gained international recognition and played a crucial role in advancing the anti-colonial struggle
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For Prelims: Civil Disobedience movement, Dandi March
For Mains: Indian National movement, Civil disobediance movement and its significance
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Previous Year Questions
1.Which one of the following began with the Dandi March? (2009)
(a) Home Rule Movement Answer (c) 2.With reference to the British colonial rule in India, consider the following statements: (2019)
Which of the statements given above are correct? (a) 1 and 2 only Answer (b) 3.The 1929 Session of Indian National Congress is of significance in the history of the Freedom Movement because the (2014) (a) attainment of Self-Government was declared as the objective of the Congress Answer (b) 4.With which one of the following movements is the slogan “Do or Die” associated? (2009) (a) Swadeshi Movement Answer (d) |
WORLD AIR QUALITY REPORT 2024
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New Delhi recorded an average annual PM2.5 concentration of 91.8 µg/m³, making it the most polluted capital city. It was followed by N’Djamena in Chad (91.6 µg/m³) and Dhaka (78 µg/m³).
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Between 2018 and 2024, New Delhi consistently ranked as the most polluted capital, except in 2022 when N’Djamena briefly surpassed it.
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PM2.5, a fine particulate matter that remains suspended in the air, poses serious health risks. It is linked to respiratory ailments and increases the likelihood of cardiovascular diseases.
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The World Health Organization (WHO) recommends an annual PM2.5 limit of 5 µg/m³, whereas India’s Central Pollution Control Board (CPCB) has set a significantly higher threshold of 40 µg/m³.
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The primary contributors to PM2.5 pollution include emissions from combustion engines, power plants, industrial processes, agricultural activities such as stubble burning, and the burning of wood and coal.
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A report by Swiss air quality technology company IQAir highlights that 13 of the world's 20 most polluted cities are in India, with Byrnihat recording the highest annual PM2.5 concentration at 128.2 µg/m³.
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Other highly polluted cities in India include Mullanpur (Punjab), Faridabad, Loni, Gurgaon, Ganganagar, Greater Noida, Bhiwadi, Muzaffarnagar, Hanumangarh, Noida, and various parts of Delhi, including Central Delhi.
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India ranks as the fifth most polluted country, with an average PM2.5 level of 50.6 µg/m³—ten times the WHO’s recommended limit. In 2023, it was the third most polluted nation.
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The findings are based on data from over 40,000 air quality monitoring stations spread across 8,954 locations in 138 countries, as analyzed by IQAir’s air quality experts.
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The 7th annual World Air Quality Report confirms that India is home to 13 of the 20 most polluted cities globally. Byrnihat, located on the Assam-Meghalaya border, ranked as the most polluted city in the world. IQAir's analysis utilized data from 40,000 monitoring stations worldwide.
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The report specifically assessed PM2.5 concentrations—one of the smallest yet most hazardous air pollutants. These fine particles, mainly originating from fossil fuel combustion, can contribute to respiratory illnesses, chronic kidney disease, cancer, strokes, and heart attacks.
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Airborne particulate matter is a complex mixture of solid and liquid substances that vary in size, composition, and chemical nature. Regulatory frameworks classify particles based on their size, with PM10 (10 microns or smaller) being inhalable and capable of causing health issues, while PM2.5 (2.5 microns or smaller) is even more harmful.
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Only seven nations—Australia, Bahamas, Barbados, Estonia, Grenada, Iceland, and New Zealand—met the WHO’s annual PM2.5 guideline. Oceania emerged as the least polluted region, with 57% of its cities adhering to WHO standards. This region includes Australia, French Polynesia, and New Zealand.
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No city in East Asia, Southeast Asia, or West Asia complied with WHO air quality guidelines.
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Additional key insights from the report include:
- Only 17% of cities worldwide met WHO’s air pollution standards.
- Out of 138 countries and regions, 126 (91.3%) exceeded the WHO’s recommended annual PM2.5 limit of 5 µg/m³.
- The seven most polluted cities were located in Central and South Asia.
- Los Angeles was the most polluted major city in the United States.
- The five most polluted countries, according to the report, were Chad (91.8 µg/m³), Bangladesh (78 µg/m³), Pakistan (73.7 µg/m³), Congo (58.2 µg/m³), and India (50.6 µg/m³).
PM2.5 (Particulate Matter 2.5) refers to fine airborne particles that are 2.5 microns or smaller in diameter—about 30 times smaller than the width of a human hair. Due to their tiny size, they can easily penetrate deep into the lungs and even enter the bloodstream, posing serious health risks.
Sources of PM2.5:
- Vehicle emissions (cars, trucks, buses)
- Industrial processes (factories, power plants)
- Burning of fossil fuels (coal, oil, gas)
- Agricultural activities (stubble burning, fertilizers)
- Construction and road dust
- Wood and biomass burning (household cooking, heating)
- Natural sources (wildfires, volcanic eruptions, dust storms)
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National Clean Air Programme (NCAP): Launched in January 2019, NCAP is a comprehensive initiative aimed at reducing particulate matter (PM) pollution by 20-30% by 2024, compared to 2017 levels. It covers 102 non-attainment cities (cities that consistently exceed national air quality standards).
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Graded Response Action Plan (GRAP): Implemented in the National Capital Region (NCR), GRAP is a set of emergency measures that are activated based on the severity of air pollution. It includes actions like banning diesel generators, increasing public transport, and stopping construction activities during high pollution episodes.
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Bharat Stage VI (BS-VI) Emission Standards: India leapfrogged from BS-IV to BS-VI emission standards in April 2020. These stricter norms significantly reduce the permissible levels of pollutants like NOx, PM, and CO from vehicles.
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Promotion of Electric Vehicles (EVs): The government has introduced various incentives and policies to promote the adoption of electric vehicles, including the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which provides subsidies for EV purchases and infrastructure development.
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Pradhan Mantri Ujjwala Yojana (PMUY): This scheme aims to reduce indoor air pollution by providing free LPG connections to women from below-poverty-line households, encouraging the use of cleaner cooking fuels instead of biomass.
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Air Quality Index (AQI) Monitoring and Public Awareness: The government has established a network of air quality monitoring stations across the country and provides real-time AQI data to the public. This helps in raising awareness and enabling citizens to take precautionary measures.
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Ban on Stubble Burning: To address the issue of crop residue burning, which significantly contributes to air pollution in northern India, the government has promoted alternative methods like the use of Happy Seeders and other machinery for residue management, along with financial incentives for farmers.
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Industrial Emission Standards: The government has set stringent emission standards for industries and power plants, mandating the use of technologies like electrostatic precipitators (ESPs) and flue gas desulfurization (FGD) to reduce emissions
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For Prelims: Air Pollution, Air Quality Index, PM 2.5, PM 10, BS-VI Vehicles, Graded Response Action Plan, National Capital Region, Nitrogen Dioxide, Ozone, Carbon,
For Mains:
1. With the onset of worsening air quality in Mumbai, discuss the importance of the AQI as a critical resource for both the government and the public. How can the AQI assist in addressing air pollution-related challenges in the upcoming winter months? (250 Words)
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Previous Year Questions 1. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (UPSC 2016)
Select the correct answer using the code given below: A. 1, 2 and 3 only B. 2, 3 and 4 only C. 1, 4 and 5 only D. 1, 2, 3, 4 and 5 Answer: B 2. Which of the following are the reasons/factors for exposure to benzene pollution? (UPSC 2020)
Select the correct answer using the code given below: A. 1, 2 and 3 only B. 2 and 4 only C. 1, 3 and 4 only D. 1, 2, 3, 4 and 5 Answer: A 3. What is the ‘Greenhouse Gas Protocol’? (UPSC 2016) (a) It is an international accounting tool for government and business leaders to understand, quantify and manage greenhouse gas emissions (b) It is an initiative of the United Nations to offer financial incentives to developing countries to reduce greenhouse gas emissions and to adopt eco-friendly technologies. (c) It is an inter-governmental agreement ratified by all the member countries of the United Nations to reduce greenhouse gas emissions to specified levels by the year 2022 (d) It is one of the multilateral REDD+ initiatives hosted by the World Bank Answer: A 4. Photochemical smog is a resultant of the reaction among (UPSC 2013) (a) NO2, O3 and peroxyacetyl nitrate in the presence of sunlight (b) CO, O2 and peroxyacetyl nitrate in the presence of sunlight (c) CO, CO2 and NO2 at low temperature (d) high concentration of NO2 O3 and CO in the evening
Answer: A
5. Acid rain is caused by the pollution of the environment (UPSC 2013, 2022) (a) Carbon Dioxide and Nitrogen (b) Carbon Monoxide and Carbon Dioxide (c) Ozone and Carbon Dioxide (d) Nitrous Oxide and Sulphur Dioxide Answer: D
6. Biological Oxygen Demand (BOD) is a standard criterion for (UPSC 2017) (a) Measuring oxygen level in blood (b) Computing oxygen levels in forest ecosystems (c) Pollution assay in aquatic ecosystem (d) Assessing oxygen levels in high-altitude regions Answer: C 7. The Ministry of Environment, Forest and Climate Change recently published the draft Environment Impact Assessment (EIA) Notification, in 2020. Which of the following statements is correct about EIA? (Punjab Civil Service 2020)
1. It predicts the effect of a proposed industrial/infrastructural project on the environment.
2. It prevents the proposed activity/project from being approved without proper oversight or taking adverse consequences into account.
3. It compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits.
4. As per the new notification, Coal and non-Coal mineral prospecting and solar photovoltaic projects do not need prior environmental clearance.
Select the correct answer using the code given below:
A. Only 1 and 2
B. Only 2, 3 and 4
C. Only 1, 2 and 3
D. Only 1, 2 and 4
Answer: D
8. Headquarters of the World Meteorological Organization is located in (NDA 2017)
A. Washington B. Geneva C. Moscow D. London
Answer: B
9. With reference to the 'Global Climate Change Alliance', which of the following statements is/are correct? (UPSC 2017)
1. It is an initiative of the European Union.
2. It provides technical and financial support to targeted developing countries to integrate climate change into their development policies and budgets.
3. It is coordinated by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD)
Select the correct answer using the code given below:
A. 1 and 2 only B. 3 only C. 2 and 3 only D. 1, 2 and 3
Answer: A
10. The IPCC is the United Nations body for assessing the science related to climate change. IPCC stands for: (RRB NTPC CBT 2 2022)
A. Intergovernmental Provision on Climate Change
B. International Panel on Climate Change
C. International Provision on Climate Change
D. Intergovernmental Panel on Climate Change
Answer: D
11. Comprehension (SSC CHSL 2020)
Direction: In the following passage some words have been deleted. Fill in the blanks with the help of the alternatives given. Select the most appropriate option for each blank.
Forest fire always (1) ______ by one of two reasons-naturally caused or human-caused. Natural fire is generally (2) ______ by lightning, with a very small percentage (3) ______ by spontaneous combustion of dry fuel such as sawdust and leaves. (4) ______, human-caused fire can happen (5) ______ any number of reasons.
Select the most appropriate option for blank No. 1.
A. takes up B. happens C. causes D. creates
Answer: B
12. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020)
A. long-term damage done by a tonne of CO2 emission in a given year.
B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C. efforts put in by a climate refugee to adapt to live in a new place.
D. contribution of an individual person to the carbon footprint on the planet Earth.
Answer: A
13. The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere, because it absorbs (UPSC 2012)
A. the water vapour of the air and retains its heat
B. the ultraviolet part of the solar radiation
C. all the solar radiations
D. the infrared part of the solar radiation
Answer: D
14. As per the World Health Organisation (WHO) recommendation of a balanced diet, to avoid unhealthy weight gain, total fat should NOT exceed _______ of total energy intake. (UPSSSC Mandi Inspector 2019)
A. 20% B. 30% C. 10% D. 40%
Answer: B
15. What is the role of ultraviolet (UV) radiation in the water purification systems? (UPSC 2012)
1. It inactivates/kills the harmful microorganisms in water.
2. It removes all the undesirable odours from the water.
3. It quickens the sedimentation of solid particles, removes turbidity and improves the clarity of water.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: A
16. Which of the following ultraviolet rays is more dangerous? (UPTET 2017)
A. UV-A B. UV-B C. UV-C D. None of the above
Answer: C
17. Consider the following statements: (UPSC 2019)
1. Agricultural soils release nitrogen oxides into environment.
2. Cattle release ammonia into environment.
3. Poultry industry releases reactive nitrogen compounds into environment.
Which of the statements given above is/are correct?
A. 1 and 3 only B. 2 and 3 only C. 2 only D. 1, 2 and 3
Answer: D
18. Which of the following is a VOC? (MP Vyapam 2022)
A. Toulene B. Water C. Carbon dioxide D. Carbon monoxide
Answer: A
19. Volatile Organic Compounds (VOCs) are of great concern because (UGC NET Environmental Science 2020)
A. Once such compounds are in the vapour state, they are difficult to control in the environment.
B. Most of them are ozone depleting substances
C. They contribute to a general increase in reactive hydrocarbons in the atmosphere.
D. They are less soluble in water.
Answer: C
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