CURRENT ACCOUNT DEFICIT
1. Context
India’s total trade deficit, counting both merchandise and services, widened to $8.65 billion in April, compared with $5.77 billion in April last year, according to the data from the Ministry of Commerce and Industry
2. What is a Current Account Deficit (CAD)?
- The Current Account Deficit (CAD) refers to a situation where a country's total imports of goods, services, investment incomes, and unilateral transfers exceed its total exports. It represents a deficit or negative balance in the country's current account, which is a component of its balance of payments.
- CAD reflects a nation's dependence on foreign sources to finance its consumption and investment. A persistent deficit in the current account might indicate that a country is spending more on foreign goods and services than it is earning, leading to increased borrowing from other countries to cover the shortfall.
- This deficit is not necessarily negative on its own, as it can be financed by foreign investments or borrowing. However, if it becomes unsustainable or grows excessively large, it could pose risks to the country's economic stability, currency value, and overall financial health. Governments often monitor and aim to manage their current account deficits to maintain a healthy balance in their economy.
3. The significance of CAD
- When the value of the goods and services that a country imports exceed the value of the products it exports, it is called the current account deficit.
- CAD and the fiscal deficit together make up the twin deficits the enemies of the stock market and investors.
- If the current account of the country's trade and transactions with other countries show a surplus, that indicates money is flowing into the country, boosting the foreign exchange reserves and the value of the rupee against the dollar.
- These are factors that will have ramifications on the economy and the stock markets as well as on returns on investments by people.
4. RBI on CAD
- According to the RBI, the CAD which was at $36.4 billion for the quarter ending September 2022, is expected to moderate in the second half of 2022-23 and remain eminently manageable and within the parameters of viability.
- CAD for the first half of 2022-23 stood at 3.3. per cent of the GDP.
- The situation has shown improvement in Q3: 2022-23 as imports moderated in the wake of lower commodity prices, resulting in the narrowing of the merchandise trade deficit.
5. Narrowed Trade deficit
- January trade deficit narrowed to $17.7 billion, led by a sharp fall in imports, while exports fell by a smaller amount.
- The sharp drop in imports was due to non-oil imports falling, mainly due to a price impact (softening in coal prices from mid-December), likely softening in domestic demand post the festival season (Such as lower imports of transport equipment) and the seasonal impact of the Chinese New Year holidays.
- On the other hand, after the Rs 26, 000 crore sell-off by foreign portfolio investors in January, FPI outflows have come down to Rs 4, 400 crores in February so far.
- Workers' remittances went up to $ 30 billion in the April-September 2022 period from $ 25. 48 billion in the same period a year ago.
- At the same time, gold imports fell to $20 billion from $ 23.9 billion a year ago.
6. Improvement of Capital flow
- While there is a perception in the markets that capital flows could come under some pressure with China's reopening and any deviations in monetary policy expectations, inflows are expected to increase the economy on the whole as foreign investors are unlikely to keep away from India, which is expected to witness one of the highest growth rates among large economies.
- At a time when the economies of many developed markets are expected to take a hit, the RBI has projected the GDP growth for the next fiscal (FY2024) at 6.4 per cent and the Union Budget has indicated a capital expenditure of Rs 10 lakh crore (over $120 billion).
- Moreover, with the rise in interest rates in India after the RBI hiked the repo rate by 250 basis points to 6.50 per cent, non-resident Indian deposits, remittances and FPI investment in debt are expected to rise further.
- NRI deposits had increased by $3.62 billion to $ 134.49 billion in the April-November period of 2022.
- Capital flow into India came under pressure in 2022 following the sharp rise in interest rates in the US.
- While FPIs pulled out Rs 121, 439 crores in 2022, even in the first six weeks of 2023, the FPI flow has been negative and the equity markets have witnessed a net outflow of Rs 32, 887 crores till February 16.
- While the flow of capital will depend upon the interest rate movement and currency movements vis-a-vis the US dollar, there is optimism among global investors about India.
7. Moderate CAD impact on Market
- While rising CAD raises concerns among investors as it hurts the currency and thereby the inflow of funds into the markets a notable decline in CAD in January has improved market sentiments.
- The benchmark Sensex at BSE rose 407 points intraday on Thursday before closing at 61, 319 with a gain of 44 points or 0.07 per cent.
- CAD is very important for the currency and the value of an economy hinges a lot on the value of its currency thereby, it also supports the equity markets by keeping the fund flow intact.
- While the numbers for January have come good, experts say this needs to be sustained.
For Prelims & Mains
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For Prelims: Current Account Deficit, RBI, Union Budget, GDP, Capital flow,
For Mains:
1. What is Current Account Deficit? Discuss its significance and impact on the Indian market (250 Words)
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Previous Year Questions
1.Economic growth in country X will necessarily have to occur if (UPSC CSE 2013) (a) there is technical progress in the world economy (b) there is population growth in X (c) there is capital formation in X (d) the volume of trade grows in the world economy Answer (c) Economic growth in country X is not guaranteed by factors such as technical progress in the world economy, population growth, or global trade expansion alone. However, capital formation—which includes investments in physical assets like infrastructure, machinery, and technology—is a direct driver of economic growth.
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Source: The Indian Express
INDUS WATER TREATY
1. Context
Pakistan has said it is willing to restart talks with India on the Indus Waters Treaty (IWT), which India has kept in abeyance following the Pahalgam terror attacks, government sources, on condition of anonymity
2. Is unilateral suspension permissible?
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The Indus Waters Treaty (IWT) cannot be modified or terminated by one country alone. Article XII explicitly states that the agreement may only be ended through a "duly ratified treaty" mutually accepted by both India and Pakistan.
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India’s reference to placing the treaty “in abeyance” in its communication with Pakistan lacks legal grounding, as international law and the Vienna Convention on the Law of Treaties (VCLT), 1969—which serves as the foundational framework for international agreements—do not recognize this term.
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Under Article 62 of the VCLT, a treaty may be withdrawn from if there has been a “fundamental change of circumstances” compared to when it was first signed.
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Although India is not a signatory and Pakistan has signed but not ratified the VCLT, the International Court of Justice (ICJ), in its ruling on the Fisheries Jurisdiction cases, recognized Article 62 as part of customary international law—making it applicable even without formal ratification.
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India appears to be appealing to this legal doctrine in its letter, which emphasized that a “fundamental change in circumstances” warrants a reassessment of its commitments under the IWT.
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For instance, in the 1997 Gabcíkovo-Nagymaros case involving Hungary and Slovakia’s dam project, Hungary claimed that evolving political and economic conditions, along with potential environmental risks, justified ending the treaty.
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The ICJ dismissed these claims, asserting that the cited changes were not directly tied to the treaty’s central goal of cooperative energy generation
3.How will this have effect on Pakistan?
- Over 80% of Pakistan’s agricultural activities and nearly one-third of its hydropower production rely on the Indus basin's water resources.
- Despite this heavy dependence, analysts point out that India does not have the extensive water storage facilities or a widespread canal network necessary to retain the vast volumes—tens of billions of cubic metres—of water from the western rivers.
- India’s existing infrastructure primarily comprises run-of-the-river hydropower projects, which are not designed for significant water storage.
- Nevertheless, the primary concern lies in the unpredictability of water flows, which poses a serious threat to Pakistan’s largely agriculture-based economy
4. Applications moved by Pakistan and India earlier
- The World Bank, the third party to the Treaty and the acknowledged arbiter of disputes were, meanwhile faced with a unique situation of having received two separate requests for the same dispute.
- New Delhi feels that the World Bank is just a facilitator and has a limited role.
- On December 12, 2016, the World Bank announced a "pause" in the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements.
- The regular meetings of Indus Waters Commissioners resumed in 2017 and India tried to use these to find mutually agreeable solutions between 2017 and 2022.
- Pakistan refused to discuss these issues at these meetings.
- At Pakistan's continued insistence, the World Bank, in March last year, initiated actions on the requests of both India and Pakistan.
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On March 31, 2022, the World Bank decided to resume the process of appointing a Neutral Expert and a Chairman for the Court of Arbitration.
In October last year, the Bank named Michel Lino as the Neutral Expert and Prof. Sean Murphy as Chairman of the Court of Arbitration.
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- They will carry out their duties in their capacity as subject matter experts and independently of any other appointments they may currently hold.
- On October 19, 2022, the Ministry of External Affairs said, " We have noted the World Bank's announcement to concurrently appoint a Neutral Expert and a Chair of the Court of Arbitration in the ongoing matter related to the Kishanganga and Ratle projects".
- Recognising the World Bank's admission in its announcement that "carrying out two processes concurrently poses practical and legal challenges".
- India would assess the matter that "India believes that the implementation of the Indus Water Treaty must be in the letter and spirit of the Treaty".
- Such parallel consideration of the same issues is not provided for in any provisions of the Treaty and India has been repeatedly citing the possibility of the two processes delivering contradictory rulings, which could lead to an unprecedented and legally untenable situation, which is unforeseen in Treaty provisions.
5. Dispute redressal mechanism
- The dispute redressal mechanism provided under Article IX of the IWT is graded.
- It's a 3-level mechanism.
- So, whenever India plans to start a project, under the Indus Water Treaty, it has to inform Pakistan that it is planning to build a project.
- Pakistan might oppose it and ask for more details. That would mean there is a question and in case there is a question, that question has to be clarified between the two sides at the level of the Indus Commissioners.
- If that difference is not resolved by them, then the level is raised. The question then becomes a difference.
- That difference is to be resolved by another set mechanism, which is the Natural Expert.
- It is at this stage that the World Bank comes into the picture.
- In case the Neutral Expert says that they are not able to resolve the difference or that the issue needs an interpretation of the Treaty, then that difference becomes a dispute.
It then goes to the third stage the Court of Arbitration. - To Sum up, it's a very graded and sequential mechanism first Commissioner, then the Neutral Expert and only then the Court of Arbitration.
6. India's notice and its implications
- While the immediate provocation for the modification is to address the issue of two parallel mechanisms, at this point, the implications of India's notice for modifying the treaty are not very clear.
- Article XII (3) of the Treaty that India has invoked is not a dispute redressal mechanism.
- It is in effect, a provision to amend the Treaty.
- However, an amendment or modification can happen only through a "duly ratified Treaty concluded for that purpose between the two governments".
- Pakistan is under no obligation to agree to India's proposal.
- As of now, it is not clear what happens if Pakistan does not respond to India's notice within 90 days.
| The next provision in the Treaty, Article XII (4), provides for the termination of the Treaty through a similar process " a duly ratified Treaty concluded for that the purpose between the two governments". |
- India has not spelt out exactly what it wants to be modified in the Treaty.
- But over the last few years, especially since the Uri attack, there has been a growing demand in India to use the Indus Waters Treaty as a strategic tool, considering that India has the natural advantage of being the upper riparian state.
- India has not fully utilized its rights over the waters of the three east-flowing rivers Ravi, Beas and Sutlej over which India has full control under the Treaty.
It has also not adequately utilized the limited rights over the three west-flowing rivers Indus, Chenab and Jhelum which are meant for Pakistan. - Following the Uri attack, India established a high-level task force to exploit the full potential of the Indus Waters Treaty.
- Accordingly, India has been working to start several big and small hydroelectric projects that had either been stalled or were in the planning stages.
7. Indus river System
- A river system consists of a river and all its tributaries. The Indus River system is made up of six rivers: Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Among these, the Indus and Sutlej are antecedent rivers, meaning they existed before the formation of the Himalayas and carved deep gorges as they flowed from the Tibet region. The remaining four rivers—Jhelum, Chenab, Ravi, and Beas—originate in India.
- The Indus Basin stretches across four countries: China, India, Pakistan, and Afghanistan. In India, it covers the Union Territories of Ladakh and Jammu and Kashmir, as well as Chandigarh, and the states of Himachal Pradesh, Punjab, Haryana, and Rajasthan. The total drainage area of the basin is about 3,21,289 square kilometers, representing roughly 9.8% of India’s total geographical area.
Western rivers
- The Indus River originates from the trans-Himalayan range near Mansarovar Lake in Tibet, known as Singi Khamban or the Lion’s Mouth. Flowing west, it enters India at Demchok in Ladakh.
- Within India, the river runs for about 1,114 kilometers, flowing between the Ladakh and Karakoram ranges. Its main right bank tributaries include the Shyok (originating from Rimo Glacier), Shigar, and Gilgit, while the Zaskar and Hanle rivers are its left bank tributaries. The Indus River travels a total of 2,880 kilometers, eventually emptying into the Arabian Sea near Karachi, Pakistan. The Indus River Dolphin, listed as endangered by the International Union for Conservation of Nature (IUCN), primarily inhabits the Indus.
- The Jhelum River (252 km) begins at Verinag near the Pir Panjal in India, flowing through Wular Lake in Srinagar before entering Pakistan, where it merges with the Chenab near Jhang. The Chenab River, the Indus’s largest tributary, is 1,180 km long within India and originates from the confluence of the Chandra and Bhaga rivers at Tandi in Keylong, Himachal Pradesh.
Eastern river
- The Ravi River (95 km) starts from the Kullu Hills near Rohtang Pass in Himachal Pradesh and joins the Chenab at Sarai Sidhu in Pakistan. The Beas River (354 km) originates from Beas Kund, located at 4,000 meters above sea level near Rohtang Pass. It flows through the Kullu Valley and joins the Sutlej near Harike in Punjab, India. The Harike Barrage, built in 1952, diverts water for the Indira Gandhi Canal system.
- The Sutlej River (676 km) is another antecedent river, originating from Rakas Tal (4,555 meters above sea level) near Mansarovar in Tibet. It enters India near Ropar. India has built several important dams to harness the waters of the eastern rivers, including the Ranjit Sagar Dam on the Ravi, the Bhakra Dam on the Sutlej, and the Pong and Pandoh Dams on the Beas. These projects, including the Beas-Sutlej Link, the Madhopur-Beas Link, and the Indira Gandhi Canal Project, allow India to utilize nearly 95% of the waters of these eastern rivers.
8. Way Forward
However, India’s projects on the western rivers have been a source of dispute with Pakistan. Significant projects on the western rivers, such as the Salal Dam, the Baglihar Hydropower Project, the Pakal Dul Project, and the Kiru Project, are located on the Chenab River, while the Tulbul Project is situated on the Jhelum River in Jammu and Kashmir. These projects have been at the center of objections from Pakistan over the year
For Prelims & Mains
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For Prelims: Indus water treaty, World Bank, India and Pakistan, Ravi, Jhelum, Sutlej, Beas, Chennab, Court of Arbitration, Uri attack, Neutral Expert, hydel projects,
For Mains:
1. What is Indus Water Treaty and discuss India's recent notice and its implications (250 Words)
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Previous Year Questions
1.With reference to the Indus river system, of the following four rivers, three of them pour into one of them which joins the Indus directly. Among the following, which one is such a river that joins the Indus direct? (2021) (a) Chenab (b) Jhelum (c) Ravi (d) Sutle 2.Consider the following pairs (2019)
Answer (d) Which of the pairs given above are correctly matched? (a) 1, 2 and 4 (b) 1, 3 and 4 (c) 2 and 5 (d) 3 and 5 Answer (a) Mains 1.The interlinking of rivers can provide viable solutions to the multi-dimensional inter-related problems of droughts, floods, and interrupted navigation. Critically examine. (2020) |
Source: The Indian Express
GIG ECONOMY
1. Context
A roundtable held here on Thursday on platform work in the country recommended minimum wages, social security and legal protections for gig and platform workers. The meeting demanded a tripartite welfare Board for gig workers in all States and at the Central level comprising representatives from employees, employers and governments
2. What is the gig economy?
The gig economy refers to a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs. It includes a wide range of activities, from ride-sharing and food delivery to freelance writing and graphic design. Workers in the gig economy are typically independent contractors who perform specific tasks or projects, often mediated through digital platforms. This economy offers flexibility and autonomy for workers but also presents challenges such as lack of job security, benefits, and consistent income
3.What is the difference between the formal and informal labour markets?
| Subject | Formal Labor Market | Informal Labor Market |
| Regulation | Regulated by government laws and policies | Not regulated by formal labor laws |
| Job Security | Generally offers job security | Often lacks job security |
| Benefits | Provides benefits like health insurance and retirement plans | Rarely provides benefits |
| Legal Protections | Employees have legal protections and must adhere to standards | Workers lack legal protections |
| Income | Regular and predictable income | Irregular and uncertain income |
| Employment Contracts | Jobs usually involve formal contracts | Work is often done without formal contracts |
| Examples | Corporate jobs, government positions | Freelance work, informal vendors, day labourers |
4. What is the current state of the labour market in India?
- Maintaining the impressive growth rates of recent years into the medium to long term, while expanding the consumption base, will be difficult given that a significant portion of the country's workforce remains stuck in low-productivity jobs.
- Recent government surveys indicate that the number of informal businesses in the country has increased from 57.6 million in 2010-11 to 63.4 million in 2015-16, and further to 65 million in 2022-23
- If the economy were generating more productive employment opportunities, both the number of informal firms and the workforce within them would be significantly decreasing.
- Combining the 110 million workers in non-farm informal businesses with the approximately 230 million engaged in agriculture accounts for almost two-thirds of the labor force still employed in low-productivity jobs in less efficient sectors—sectors that now contribute an even smaller share of the total economic value added than before.
- This is in addition to those informally employed in construction and the formal parts of the economy.
- In the absence of low or semi-skilled job opportunities in the more productive formal manufacturing sector, and without the necessary education to enter more skilled formal employment in both manufacturing and high-end services, their only alternatives are precarious forms of employment in the gig economy.”
- The issue of job scarcity has long been a part of India's development narrative, not limited to the current administration.
- However, recent changes include the youth bulge, increasing labor force participation rate—particularly among women driven into the workforce by financial distress—the declining share of value added by the informal sector, and the growing capital intensity in production sectors that contribute more to value addition and are labor-intensive by nature
- The consequences of failing to create a sufficient number of more productive jobs, and the resulting deepening labor market duality, are likely to be manifested in various ways, including reduced social mobility and high-income inequality.
- As others have noted, this will determine whether the country follows the path of East Asia or takes the route of Latin America
5. What are the causes of the rising gig economy in India?
- The proliferation of smartphones and the internet has facilitated the growth of digital platforms that connect gig workers with customers. Apps and websites have made it easier to find and offer short-term jobs
- India has a large youth population that is tech-savvy and open to flexible work arrangements. The gig economy offers opportunities that appeal to the younger generation seeking autonomy and varied work experiences
- The formal sector has not been able to generate enough jobs to match the growing labor force. As a result, many individuals turn to gig work for income, as it often requires lower barriers to entry compared to traditional employment
- Financial distress and the need for supplementary income have pushed more people towards gig work. This includes individuals who may already have a job but need additional income to meet their financial needs
- The gig economy offers flexibility in work hours and the choice of assignments, which attracts individuals who prefer non-traditional work arrangements over the constraints of full-time employment.
- Companies are increasingly outsourcing tasks to freelancers to reduce costs associated with full-time employees, such as benefits and office space. This shift towards a more flexible workforce model has contributed to the growth of gig work
- The ability to work remotely has opened up international opportunities for gig workers. Indian freelancers can now find work with companies around the world, broadening their employment prospects
- The regulatory framework in India is still catching up with the gig economy, providing a more lenient environment for gig platforms and workers compared to the heavily regulated formal sector
- The gig economy allows workers to leverage diverse skill sets and explore multiple career paths simultaneously. This appeals to individuals looking to diversify their professional experience
- There is growing consumer demand for services that gig workers provide, such as food delivery, ride-hailing, home services, and freelance professional services. This demand fuels the expansion of gig opportunities
6.What are the advantages and disadvantages of the gig economy?
| Advantages | Disadvantages |
| Workers can choose their own hours and work location | Gig workers often face uncertain income and job stability. |
| Diverse Opportunities | No Employment Benefits |
| Access to a variety of job types and industries | Absence of benefits like health insurance, retirement plans, and paid leave |
| Increased Income Potential | Income Variability |
| Potential to earn more by taking multiple gigs or high-paying tasks | Earnings can be unpredictable and inconsistent. |
| Opportunity to develop and diversify skill sets. | Many gig workers are not protected by labor laws and regulations |
| Easier entry into the workforce without extensive qualifications. | Limited opportunities for career advancement and long-term growth |
| Greater control over the type of work undertaken and methods of working | Flexibility can lead to overworking and blurred boundaries between work and personal life |
| Ability to work for international clients and companies | Gig workers may miss out on the social aspects and support networks found in traditional workplaces |
| Companies can save on costs related to full-time employees (benefits, office space, etc.). | Potential for gig workers to be underpaid and overworked without proper oversight |
| Can quickly adapt to changing market demands and consumer needs | Limited access to training and professional development resources |
7. What are the challenges associated with the gig economy?
- Gig workers often face unpredictable and inconsistent income, making financial planning difficult
- Gig workers typically do not receive traditional employment benefits such as health insurance, retirement plans, paid leave, and unemployment benefits
- The temporary and project-based nature of gig work means that workers lack job security and can be easily terminated
- There is often a lack of clear legal frameworks to protect gig workers, leading to issues with worker rights, minimum wage enforcement, and job classifications.
- The flexibility of gig work can lead to overworking and difficulty in maintaining a work-life balance, as the lines between personal and professional time can become blurred.
- Gig workers can be vulnerable to exploitation, including low pay, long hours, and lack of proper working conditions, without sufficient oversight and protection
- Gig workers may miss out on the social interactions and support networks that come with traditional workplaces, leading to feelings of isolation and lack of community
- There are limited opportunities for career advancement, professional development, and skill enhancement in the gig economy
- Gig workers often lack access to training and development programs that can help them improve their skills and advance their careers
- Gig workers are usually responsible for managing their own taxes, which can be complex and burdensome without proper knowledge and resources
- Reliance on digital platforms and technology can pose challenges, including the need for constant internet access and the risk of being affected by platform changes or technical issues
- Without formal workplace regulations, gig workers may face unsafe working conditions and lack proper health and safety protections
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For Prelims: Gig Economy
For Mains: GS III- Gig Economy and Associated Problems around
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Source: Indianexpress
PSLV
1. Context
Recently ISRO’s Polar Satellite Launch Vehicle (PSLV) successfully placed two Singapore satellites into their intended orbits.
2. History of PSLV
- The PSLV is one of ISRO’s most reliable vehicles, having launched hundreds of satellites with only three failures or partial failures since 1993.
- Over the years, various improvements have been made to it, making it a stand-out satellite carrier.
Launch vehicles are meant only to deposit satellites into space, after which they become useless. - They either burn up in space or add to the ever-increasing concern of space debris. The PSLV, however, is now technologically advanced enough to have one component that can stay on in space to research after it has delivered its satellite.
- The current mission includes this component, POEM-2, which stands for PSLV Orbital Experimental Module.
3. What is PSLV (Polar Satellite Launch Vehicle)?
- PSLV is the most reliable rocket used by ISRO to date. Its first launch was in 1994, and it has been ISRO’s main rocket ever since.
- Apart from Indian satellites, it also carries satellites from other nations into space, like in the current mission, where it carried payloads from Singapore.
- The reason for this is that apart from being reliable, the PSLV is also more affordable than the launch vehicles of many other countries.
- After its first successful launch in October 1994, PSLV emerged as a reliable and versatile workhorse launch vehicle in India.
- The vehicle has launched numerous Indian and foreign customer satellites.
- Besides, the vehicle successfully launched two spacecraft, Chandrayaan-1 in 2008 and Mars Orbiter Spacecraft in 2013, that later traveled to Moon and Mars respectively.
- Chandrayaan-1 and MOM were feathers in the hat of PSLV. PSLV earned its title ‘the workhorse of ISRO by consistently delivering various satellites into low earth orbits.
4. Various Components of PSLV
- Rockets have several detachable energy-providing parts. They burn different kinds of fuels to power the rocket.
- Once their fuel is exhausted, they detach from the rocket and fall off, often burning off in the atmosphere due to air friction, and getting destroyed.
- Only a small part of the original rocket goes to the intended destination of the satellite.
- Once the satellite is finally ejected, this last part of the rocket either becomes part of space debris or once again burns off after falling into the atmosphere.
- PSLV has four parts namely PS1, a solid rocket motor augmented by 6 solid strap-on boosters; PS2, a storable liquid rocket engine, known as the Vikas engine; PS3, a solid rocket motor that provides the upper stages high thrust after the atmospheric phase of the launch; and PS4, the uppermost stage consisting of two Earth storable liquid engines.
- As technology evolves, the effort is to make the various parts of a rocket reusable. PSLV’s PS4 has been able to achieve this.
5. PSLV's Most recent Missions
- The rocket launched recently carried TeLEOS-2 as the primary satellite and Lumelite-4 as a co-passenger satellite.
- While TeLEOS-2 will “be used to support the satellite imagery requirements of various agencies within the Government of Singapore”, Lumelite-4 “aims to augment Singapore’s navigation maritime safety and benefit the global shipping community.
- POEM-2, meanwhile, will be utilized as an orbital platform to carry out scientific experiments through non-separating payloads.
- The payloads belong to ISRO/Department of Space, Bellatrix, Dhruva Space, and the Indian Institute of Astrophysics.
6. Why do satellites need launch Vehicles?
- The Launch vehicle rockets have powerful propulsion systems that generate the huge amount of energy required to lift heavy objects like satellites into space, overcoming the gravitational pull of the earth.
- Satellites, or payloads as they are often called, sit inside the rocket and are ejected once they reach their intended orbit in space.
- Most satellites have small propulsion systems and carry small amounts of fuel, because they encounter very little drag, or force, in outer space.
- What they do carry are the instruments needed for the scientific work for which they are being sent into space.
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For Prelims: Polar Satellite Launch Vehicle (PSLV), International Space Research Organisation (ISRO), PSLV Orbital Experimental Module, POEM-2, Chandrayaan-1, TeLEOS-2, Lumelite-4 and Indian Institute of Astrophysics.
For Mains: 1. ISRO’s role has been impeccable in making India a global space power, however, there are many challenges and opportunities in the new space age that ISRO needs to address. Discuss. (250 words).
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Previous year Question
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1. With reference to India's satellite launch vehicles, consider the following statements: (UPSC 2018)
1. PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
3. GSLV Mk III is a four-stage launch vehicle with the first and third stages using solid rocket motors, and the second and fourth stages using liquid rocket engines.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3
C. 1 and 2
D. 3 only
Answer: A
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Source: The Indian Express
NONE OF THE ABOVE (NOTA)
1.Context
Recently, the Vidhi Centre for Legal Policy filed a Public Interest Litigation (PIL) for including NOTA as an option compulsorily in every election, even if there is only one single candidate
2.When and why was the NOTA option introduced?
- In September 2013, the Supreme Court instructed the Election Commission of India (ECI) to implement the NOTA (None of the Above) option for voters, aiming to safeguard the confidentiality of voters’ decisions.
- Previously, in 2004, the People’s Union for Civil Liberties (PUCL) had petitioned the Supreme Court, urging the ECI to adopt measures preserving voters' right to secrecy when exercising their franchise.
- They contested that the Conduct of Elections Rules, 1961, breached secrecy by recording the choices of voters who abstained from voting, including their signatures or thumb impressions.
- Conversely, the central government argued that the right to vote was solely a statutory right and only applied to voters who participated, not those who abstained.
- However, the three-judge Bench, led by Chief Justice of India P Sathasivam and Justices Ranjana Prakash Desai and Ranjan Gogoi, ruled that secrecy must be upheld regardless of whether a voter casts a ballot.
- They emphasized the importance of secrecy in ensuring fair elections for Lok Sabha and state legislatures, stating that revealing a voter's choice or identity would serve no discernible public interest.
- Additionally, considering the introduction of Electronic Voting Machines (EVMs), the court observed that the absence of any indication from the machine upon abstaining from voting ensured privacy.
- Notably, the court acknowledged the ECI's 2001 request to the Ministry of Law and Justice to incorporate a NOTA option in EVMs and ballot papers to protect voter secrecy and enable voters to express dissent against contesting candidates, thereby reducing fraudulent voting.
- Consequently, the court endorsed this proposal, believing it would compel political parties to respect public opinion and nominate candidates known for their integrity. As a result, the Supreme Court directed the ECI to include a NOTA button in EVMs
3.What is rule 49-O? And the way is it different from NOTA?
- Rule 49-O refers to a provision in the Conduct of Elections Rules, 1961, under the Representation of the People Act in India. It allows voters to go to the polling booth but abstain from voting for any candidate.
- When a voter chooses the 49-O option, they inform the presiding officer at the polling booth of their decision not to vote for any candidate. This decision is recorded, but the vote is not counted in the final tally. Essentially, it serves as a method for expressing dissatisfaction with the available candidates without entirely boycotting the electoral process.
- NOTA (None of the Above), on the other hand, is a more recent provision introduced in India following a Supreme Court directive in 2013. NOTA appears as an option on the Electronic Voting Machine (EVM) alongside the list of candidates in an election. It allows voters to officially register their dissatisfaction with all the candidates contesting in that particular election.
- Unlike Rule 49-O, where the vote is simply not counted, NOTA votes are counted and recorded separately from the votes for individual candidates. However, if the NOTA option receives the highest number of votes in an election, the candidate with the highest number of votes among the contesting candidates is still declared the winner.
- In summary, while both Rule 49-O and NOTA provide mechanisms for voters to express dissatisfaction with candidates, NOTA is a more formal and transparent option as it is directly integrated into the voting process and the votes are counted separately.
4. Positive and Negative about NOTA
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For Prelims: NOTA, EVM, VVPAT
For Mains: GSII-Current events in national and state politics and elections
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PERIODIC LABOUR FORCE SURVEY (PLFS)
1. Context
The unemployment Rate (UR) in current weekly status (CWS) in India among persons of age 15 years and above was 5.1% in April, as per the first monthly bulletin of the Periodic Labour Force Survey (PLFS) released
2. About The Periodic Labour Force Survey (PLFS)
- The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
- The survey is conducted annually in all the states and union territories of India.
- The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
- The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
- Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
- This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.
3. Data Collection Methods in PLFS
- The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
- In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
- The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
- Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
- The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods.
4. Latest findings of the Report
Unemployment Rate (UER)
- The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
- As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
- Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one.
Labour Force Participation Rate (LFPR)
- The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
- However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
- As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
- As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.
LFPR for women
- This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
- The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.
Worker Population Rate
- Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
- As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
- The WPR is the percentage of persons employed among the persons in the population.
- Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
- This metric too has been going up and especially noteworthy are the two discrete
step-ups in 2019-20 and 2022-23.
WPR among women
This metric throws light on the WPR for women to understand what’s leading to the spike in overall WPR. Again, the WPR for women has been going up but two main spikes have been in 2019-20 and 2022-23.
Monthly earnings
The PLFS reports also provide a sense of how much people earn in different types of jobs.
While it is true that incomes have broadly gone up after falling during Covid the main takeaway from this data emerges when one compares how little have monthly incomes changed over the past 6 years, especially in the face of a sharp rise in inflation. To be sure, since late 2019, annual consumer inflation has always been above the RBI’s target of 4%.
Distribution of workers
To accurately make sense of more and more people working, it is important to know not just what they earn but also what kind of work they do. For this, we look at data collected over the usual status by PLFS. Table 3 alongside gives the details of the three main classifications: self-employment, casual labour (say a construction worker) and regular salaried job. Self-employed has two sub-categories:
(i) own account worker and employer and
(ii) unpaid helper in household enterprises.
The data shows that self-employment has risen and jobs in the other two categories have fallen in proportion. It is also noteworthy that self-employment among women is the key driver for this overall trend.
5. Key Trends in PLFS 2022-23
- Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
- However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
- Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
- Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
- In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.
6. The WayForward
While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Indian Express
