UNEMPLOYMENT IN INDIAN STATES
- Goa's unemployment rate stands at nearly 10%, surpassing the national average of 3.17% by more than threefold. It's notable that four of the top five states with high unemployment rates—Goa, Kerala, Haryana, and Punjab—are relatively affluent. In contrast, Maharashtra and Gujarat in western India, both prosperous states, report unemployment rates considerably below the national average.
- Across northern states like Jammu and Kashmir, Punjab, Haryana, Uttarakhand, and Himachal Pradesh, unemployment rates exceed the national average. Similarly, most southern states, except Karnataka, also have higher than average unemployment rates.
- Among the 27 states examined, 12 have unemployment rates lower than the national average. Notably, the low rates in significant states such as Maharashtra, Uttar Pradesh, and Madhya Pradesh contribute to this national average decline.
- However, it's puzzling that except for Maharashtra and Gujarat, states with below-average unemployment rates generally exhibit lower per capita incomes compared to the national average
- The data reveals a downward-sloping trend line, suggesting a negative correlation between the two factors: in states where a significant portion of the workforce is involved in self-employment, the unemployment rate tends to be lower.
- Given that much of self-employment in India is informal, states with a higher prevalence of informal work may find it easier to accommodate job seekers.
- However, it remains uncertain whether this relationship is causal. Does a lack of opportunities in self-employment lead to higher unemployment, or do individuals in states with high unemployment rates simply prefer not to pursue self-employment?
- A considerable portion of informal self-employment stems from agriculture and rural economies.
- Hence, a relevant measure is to analyze the proportion of the workforce engaged in urban sectors.
- A clear positive correlation emerges, indicating that unemployment rates rise in states with higher urbanization levels.
- This elucidates the elevated unemployment levels in highly urbanized states like Goa and Kerala, juxtaposed with lower rates in states such as Uttar Pradesh, Jharkhand, and Madhya Pradesh. Urbanized states typically possess smaller agrarian sectors, leading to fewer informal job opportunities compared to rural areas.
- Although informal sectors persist in urban settings, their capacity to absorb job seekers is relatively limited compared to rural agriculture, which often serves as a reserve by absorbing surplus labour
- However, there are exceptions to this pattern. Gujarat and Maharashtra, despite being highly urbanized—where the urban workforce comprises 37% in both states, significantly higher than in states like Uttar Pradesh (17%) and Madhya Pradesh (20%)—exhibit lower unemployment rates.
- Following the release of the ILO-IHD report, much discourse has revolved around the correlation between education levels and unemployment.
- A previous article in this publication dated December 26, 2023, titled 'Are graduates facing unemployment?', also delved into the prevalent issue of unemployment among graduates.
- For instance, Kerala boasts a highly educated workforce, with graduates constituting 30% of the labor force, yet it contends with high unemployment.
- Conversely, Gujarat and Maharashtra have a relatively smaller proportion of graduates in their workforce—approximately 14% and 20% respectively—and consequently experience lower unemployment rates despite their affluence and urbanization.
- Numerous factors may account for this phenomenon.
- It's plausible that graduates lack the necessary skills demanded by the burgeoning modern sector, underscoring the need to enhance educational infrastructure and standards.
- However, this doesn't fully elucidate why graduates have historically grappled with unemployment, even during the nascent stages of the modern sector.
- Another potential explanation lies in aspirational factors. Graduates aspire to secure high-paying jobs commensurate with their skills, rather than settling for informal employment.
- If the modern sector fails to expand adequately to absorb new graduates, it could precipitate unemployment.
- Nonetheless, these aren't the sole drivers of unemployment; state policies also wield significant influence. Nevertheless, this analysis underscores the interconnectedness between structural shifts and unemployment.
- As burgeoning economies evolve, there's a diminishing reliance on agriculture, accompanied by heightened urbanization and educational attainment.
- As India progresses, these factors are anticipated to exert upward pressure on the unemployment rate. Thus, it's imperative for policy initiatives to prioritize employment generation to counteract these trends
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For Prelims: Labor Force Participation Rate (LFPR), Employment Rate (ER), Centre for Monitoring Indian Economy (CMIE), and Labour Force.
For Mains: 1. Discuss the significance of the Labor Force Participation Rate (LFPR) as a critical labor market indicator in the context of economic development and policy formulation. (250 words).
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Previous year Question1. In India, which one of the following compiles information on industrial disputes, closures, retrenchments, and lay-offs in factories employing workers? (UPSC 2022)
A. Central Statistics Office
B. Department for Promotion of Industry and Internal Trade
C. Labour Bureau
D. National Technical Manpower Information System
Answer: C
2. Which of the following brings out the 'Consumer Price Index Number for Industrial Workers'? (UPSC 2015)
A. The Reserve Bank of India
B. The Department of Economic Affairs
C. The Labour Bureau
D. The Department of Personnel and Training
Answer: C
3. International Labour Organization's Conventions 138 and 182 are related to (UPSC 2018)
A. Child labour
B. Adaptation of agricultural practices to global climate change
C. Regulation of food prices and food
D. Security
Answer: A
4. 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
Answer: B
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STABLECOINS
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- Stablecoins are a type of cryptocurrency whose value is tied to specific assets. Unlike popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), or meme tokens like Shiba Inu (SHIB) — which can experience sharp price swings driven by market sentiment and other factors — stablecoins are built to keep their prices relatively constant, which is how they get their name.
- This price stability is achieved by “pegging” the stablecoin to an underlying asset, which could be a fiat currency (like the U.S. Dollar, Euro, or Hong Kong Dollar), a commodity (such as gold), another cryptocurrency (like Bitcoin), or by using algorithmic controls.
- In some cases, a combination of these methods is used. For instance, while Bitcoin’s value may fluctuate significantly over time, a stablecoin pegged to the U.S. Dollar is intended to stay close to $1.
- It’s important to note that stablecoins differ from Central Bank Digital Currencies (CBDCs). CBDCs are state-issued digital currencies managed by a country’s central bank, whereas stablecoins are often created by private entities and may even be pegged to foreign currencies
- Stablecoins hold significant importance both inside and outside the cryptocurrency space, even though they lack the explosive price surges seen in assets like Bitcoin. Within the crypto market, investors often use stablecoins to simplify trading on exchanges.
- Beyond that, people in countries facing currency depreciation turn to stablecoins to preserve their savings’ value or to reduce costs in cross-border payments.
- In regions such as Argentina, Turkey, and even Taliban-controlled Afghanistan, stablecoins are more than trading tools — they serve as a lifeline for day-to-day transactions.
- The scale of their use is striking. According to CoinMarketCap, Tether (USDT) — the largest stablecoin and the fourth biggest cryptocurrency by market capitalization — has a circulating supply of 163.75 billion USDT. Globally, the total circulation of stablecoins is estimated to exceed $250 billion.
- This growing influence has sparked concerns among governments. Authorities worry that the complex mechanisms behind stablecoins might one day impact the value of the fiat currencies or commodities that support them.
- When a stablecoin provider suddenly declares the addition of millions in backing assets, questions naturally arise about the origin — or even the existence — of those funds. This is precisely why regulatory oversight is increasingly seen as essential
- Despite their name and asset backing, stablecoins are not immune to volatility. Influenced by technical issues or global events, they can sometimes lose their peg, causing prices to move outside the expected range. Sharp declines, in particular, can spark investor panic. For instance, USDT — pegged to the U.S. Dollar — has previously dropped to around $0.92.
- In some cases, stablecoins have experienced complete collapse. A notable example is from May 2022, when Terra’s cryptocurrency LUNA and its associated algorithmic stablecoin UST lost nearly all their value within hours.
- As trust evaporated, investors rushed to sell, driving prices down to near zero. This crash erased billions of dollars from the crypto market, and the resulting liquidity crisis led to asset freezes on multiple global crypto exchanges and fintech platforms
- The Hong Kong Monetary Authority (HKMA) has announced that the Stablecoins Ordinance will take effect on August 1 this year. Under the new law, it will be illegal to “offer any unlicensed fiat-referenced stablecoin (FRS) to a retail investor” or to “actively market the issuance of unlicensed FRS to the public in Hong Kong,” as stated by HKMA Chief Executive Eddie Yue.
- To operate legally, companies aiming to issue stablecoins in Hong Kong will be required to obtain a licence from the Monetary Authority. They must also meet specific standards for managing reserve assets, redemption processes, asset stabilisation, and handling user requests.
- Additionally, they will have to follow anti–money laundering (AML) and counter–terrorist financing (CTF) regulations, ensuring that all assets are transparently disclosed and subject to proper audits.
- The HKMA cautioned that the new framework is not an open invitation for mass participation. Initially, only a small number of licences will be granted, meaning many applicants are likely to be rejected, according to Mr. Yue’s official statement
- In July, U.S. President Donald Trump signed the GENIUS Act, aimed at regulating stablecoins and safeguarding the U.S. dollar — a move welcomed by his pro-crypto supporters.
- According to the White House, the legislation mandates that stablecoins must be backed 100% by liquid assets such as U.S. dollars or short-term Treasury securities. Issuers will also be required to publicly disclose the composition of their reserves every month and adhere to specific marketing regulations.
- Countries like Japan and Singapore have already introduced dedicated stablecoin regulations, AFP reports, while several other jurisdictions apply broader cryptocurrency laws that also cover stablecoins.
- Meanwhile, despite China’s strict curbs on crypto activities, some of its major tech firms are looking to Hong Kong’s upcoming regulatory framework as a possible gateway for launching their own stablecoin projects
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For Prelims: Stablecoins , Bitcoins, Cryptocurrency
For Mains: GS III - Economy, Science and technology
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Previous year Question1. With reference to “Blockchain Technology”, consider the following statements: (UPSC 2020)
1. It is a public ledger that everyone can inspect, but which no single user controls.
2. The structure and design of the blockchain are such that all the data in it are about cryptocurrency only.
3. Applications that depend on the basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 only
D. 1 and 3 only
Answer: D
2. With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? (UPSC 2016)
1. Bitcoins are tracked by the Central Banks of the countries.
2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with Bitcoin address.
3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below.
A. 1 and 2 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3
Answer: B
3. With reference to Non-Fungible Tokens (NFTs), consider the following statements:(UPSC 2022)
1. They enable the digital representation of physical assets.
2. They are unique cryptographic tokens that exist on a blockchain.
3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
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MODEL CODE OF CONDUCT (MCC)
- The Model Code of Conduct (MCC) is a set of guidelines issued by the Election Commission of India (ECI) for political parties and candidates during elections.
- The MCC is designed to ensure free and fair elections by preventing the misuse of government machinery, maintaining a level playing field for all candidates, and avoiding any activities that could unduly influence voters.
- The Election Commission describes the Model Code of Conduct as a set of norms and rules that political parties and candidates must adhere to during the election process.
- The MCC comes into effect as soon as the election dates are announced and remains in force until the results are declared.
- It includes guidelines on various aspects of electioneering, such as campaigning, speeches, processions, polling day activities, and the content of election manifestos.
- The goal is to promote a fair and ethical electoral process, minimizing the chances of corrupt practices and ensuring that the democratic principles are upheld during elections
3.What is the Model Code of Conduct?
- The Model Code of Conduct, issued by the Election Commission, serves as a set of guidelines to oversee the conduct of political parties and candidates before elections.
- These guidelines encompass various aspects such as speeches, polling day procedures, polling booths, ministerial portfolios, election manifesto content, processions, and overall behavior. The aim is to ensure the integrity of elections.
- According to information from the Press Information Bureau, a version of the MCC was initially introduced during the 1960 state assembly elections in Kerala.
- It gained widespread adherence in the 1962 elections and has been consistently followed in subsequent general elections. In October 1979, the Election Commission expanded the MCC to include a section regulating the conduct of the 'party in power' to prevent any undue advantage during elections.
- The MCC is activated from the announcement of the election schedule until the declaration of results. Consequently, it comes into effect from the present evening and remains applicable until the conclusion of the entire election process.
- The MCC comprises eight provisions addressing general conduct, meetings, processions, polling day, polling booths, observers, the party in power, and election manifestos
4.When does the Model Code of Conduct come into effect?
- Once the code comes into effect, the governing party, whether at the national or state level, must ensure that its official position is not exploited for campaign purposes.
- Consequently, no policies, projects, or schemes should be announced that could sway voting behavior. The party is also prohibited from utilizing public funds for advertising or using official media platforms to publicize achievements with the intention of enhancing electoral prospects.
- The guidelines further dictate that ministers should refrain from combining official visits with election-related activities or utilizing official resources for such purposes.
- The ruling party is barred from employing government transportation or machinery for campaign activities. Additionally, it is mandated to provide opposition parties with equal access to public spaces like grounds for conducting election meetings, as well as amenities such as helipads, under the same terms and conditions applied to the ruling party.
- Any advertisements at the expense of the public treasury in newspapers and other media outlets are considered an offense. The ruling government is also restricted from making ad-hoc appointments in governmental bodies and public enterprises that may unduly influence voters.
- The Model Code of Conduct strictly prohibits the use of caste and communal sentiments to attract voters, allowing criticism of political parties or candidates solely based on their track record. Places of worship, including mosques, churches, and temples, are not to be employed for election propaganda.
- Practices such as bribery, intimidation, and voter impersonation are explicitly forbidden. Public meetings within the 48-hour period leading up to the poll closing time are also proscribed, known as the "election silence," aiming to provide voters with a campaign-free environment for reflection before casting their votes
5.Is the Model Code of Conduct legally binding?
- The Model Code of Conduct (MCC) is not a legally binding document in the sense that it is not enforceable by law. It is a set of guidelines and ethical standards issued by election management bodies, such as the Election Commission of India, to ensure fair play and ethical behavior during elections.
- The MCC is followed by political parties and candidates on a voluntary basis, and adherence is more a matter of political ethics and a commitment to maintaining the integrity of the electoral process.
- While the MCC itself does not have statutory backing, certain aspects of it may be supported by legal provisions. For example, if a political party or candidate violates specific principles outlined in the MCC, they may be subject to legal action under relevant electoral laws. However, the MCC, as a whole, is more of a moral and ethical code that relies on the cooperation and voluntary compliance of political participants.
- The Election Commission, as the custodian of the MCC, can take various actions against those who violate its principles.
- These actions may include issuing warnings, reprimands, and, in severe cases, canceling candidature or disqualification. The idea behind the MCC is to foster a fair and transparent electoral process and to prevent the misuse of power during election campaigns
6. Way forward
The ECI can issue a notice to a politician or a party for alleged breach of the MCC either on its own or on the basis of a complaint by another party or individual. Once a notice is issued, the person or party must reply in writing — either accepting fault and tendering an unconditional apology or rebutting the allegation. In the latter case, if the person or party is found guilty subsequently, he/it can attract a written censure from the ECI — something that many see as a mere slap on the wrist
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For Prelims: Current events of national and international importance. For Mains: General Studies II: Salient features of the Representation of People’s Act. |
Source: Indianexpress
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)
1. Context
2. About the National Level Monitoring (NLM) report
- The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
- The report is based on field visits and interviews with stakeholders at the grassroots level.
- The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
- The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.
The NLM report typically identifies the following areas:
- The coverage of rural development programs
- The quality of implementation of rural development programs
- The impact of rural development programs on the lives of rural people
The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.
3. The findings of the NLM report
- In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
- In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
- In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
- The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
- The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.
4.1. Mandate and Goals
- The mandate of MGNREGA is to provide employment and ensure food security for rural households.
- The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
- The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity.
4.2. Core Objectives
- The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
- MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
- The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.
4.3. Key Stakeholders
- Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
- Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
- The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
- The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
- Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.
4.4. Role of Gram Sabha and Gram Panchayat
- The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
- The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.
4.5. Issues with MGNREGA
- Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
- There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
- Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
- Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
- Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
- Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.
5. Conclusion
MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.
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For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),
For Mains:
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
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Previous Year Questions
Prelims
1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: B 5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
Answer: A
Mains
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
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COMPETITION COMMISSION OF INDIA
- The Competition Commission of India (CCI) is a regulatory authority established in India to promote and protect fair competition in the marketplace.
- It was established under the Competition Act, 2002, and became fully functional in 2009.
- The primary objective of the CCI is to prevent anti-competitive practices, ensure a level playing field for businesses, and promote consumer welfare
- The Competition Commission of India (within the Ministry of Corporate Affairs) has been established to enforce the competition law under the Competition Act, 2002.
- It should be noted that on the recommendations of Raghavan committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002
- The Commission consists of a Chairperson and not more than 6 Members appointed by the Central Government
- It is the statutory duty of the Commission to eliminate practices having an adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India as provided in the Preamble as well as Section 18 of the Act.
- The Commission is also mandated to give its opinion on competition issues to government or statutory authority and to undertake competition advocacy for creating awareness of competition law.
- Advocacy is at the core of effective competition regulation. Competition Commission of India (CCI), which has been entrusted with implementation of law, has always believed in complementing robust enforcement with facilitative advocacy. It is a quasi-judicial body.
Here are some key functions and responsibilities of the Competition Commission of India:
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Competition Advocacy: The CCI engages in advocacy and education activities to promote competition awareness among businesses, government agencies, and the public.
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Antitrust Enforcement: The CCI investigates and takes action against anti-competitive agreements, abuse of dominance by companies, and anti-competitive mergers and acquisitions. It can impose penalties and remedies on entities found to be in violation of competition laws.
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Merger Control: The CCI reviews and approves or disapproves mergers, acquisitions, and combinations that may have an adverse impact on competition in the Indian market. It assesses whether these transactions are likely to cause a substantial lessening of competition.
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Market Studies and Research: The CCI conducts studies and research to understand market dynamics, competition issues, and emerging trends. This information helps in formulating policies and recommendations to improve competition.
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Competition Advocacy: The commission engages in advocacy efforts to promote competition principles and practices among businesses, government agencies, and the public.
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Consumer Protection: While primarily focused on promoting competition, the CCI also indirectly promotes consumer welfare by ensuring that markets remain competitive and that consumers have choices and access to fair prices.
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Regulation of Anti-Competitive Practices: The CCI addresses practices such as price-fixing, bid rigging, and abuse of market power that can harm competition and consumers.
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Legal Proceedings: The CCI has the authority to conduct investigations, hold hearings, and pass orders. Its decisions can be appealed to higher courts in India.
- The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
- The Act prohibits anti-competitive agreements, and abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India
- In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established
- The government of India replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017
- The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009
| Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers |
The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition. The three common components of a cartel are:
- an agreement;
- between competitors;
- to restrict competition.
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For Prelims: Statutory board, Constitutional body
For Mains: 1.Discuss the role and functions of the Competition Commission of India (CCI) in promoting and ensuring fair competition in the Indian market
2.Examine the challenges and limitations faced by the Competition Commission of India (CCI) in effectively regulating and promoting competition in the digital economy
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Previous year Questions
1. Competition Commission of India is which kind of body? (RSMSSB Sanganak 2018)
A. Statutory body
B. Constitutional.
C. Single Member
D. Private
Answer (A)
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QUANTUM TUNNELLING
The Nobel Prize for Physics this year will be awarded to three scientists — John Clarke, Michel Devoret and John Martinis, the Royal Swedish Academy of Sciences said on Tuesday. The three worked together and devised experiments to tease greater insight into the workings of the quantum world: the realm of the ultra-small when objects, broken down to single, constituent particles, cease to behave in the way we ordinarily expect them to.One of the mind-boggling behaviours that particles are capable of here is “tunnelling”, literally, the ability of particles to pass through physical walls.
2. What is Quantum Tunnelling?
- Quantum tunnelling is one of those fascinating phenomena in physics that almost feels like it breaks the rules of common sense. To understand it, imagine a tiny particle—like an electron—approaching a barrier, something it doesn’t seem to have enough energy to climb over.
- In our everyday world, if you don’t have enough energy to jump over a wall, you simply bounce back. But in the quantum world, particles don’t behave like little billiard balls; they are also described by waves of probability.
- These probability waves spread out, and some part of the wave can extend into and even beyond the barrier. This means that while most of the time the particle reflects back, there is still a small chance that it will appear on the other side of the barrier without ever having gone “over” it in the classical sense. It’s as if the particle has slipped, or “tunnelled,” through the wall.
- This strange effect arises because quantum mechanics deals with probabilities and wave functions, not definite paths. The barrier doesn’t completely forbid the particle—it just makes the likelihood of passing through very small, depending on the thickness and height of the barrier.
- In the real world, quantum tunnelling is not just theory—it plays a role in many important processes. For example, it allows nuclear fusion to occur in the sun, because protons don’t have enough classical energy to overcome their mutual repulsion, but tunnelling lets them get close enough to fuse. It’s also the principle behind technologies like tunnel diodes and scanning tunnelling microscopes
- Quantum tunnelling may sound like a purely theoretical quirk of quantum mechanics, but in fact it has very practical and far-reaching applications in science, technology, and even the functioning of the universe itself.
- For instance, the very reason stars like our Sun shine is because of tunnelling. Inside the Sun, hydrogen nuclei (protons) need to get extremely close together to fuse into helium, but their natural electric repulsion makes this almost impossible at the temperatures present.
- Classically, fusion shouldn’t occur. Yet, because of quantum tunnelling, protons can “slip through” their mutual energy barrier, allowing fusion to happen, which in turn produces the sunlight and energy that sustain life on Earth.
- In electronics, tunnelling is deliberately harnessed in devices. Tunnel diodes, for example, use the tunnelling effect to achieve very fast switching speeds and are important in high-frequency applications. Similarly, the flash memory used in USB drives and SSDs relies on electrons tunnelling through insulating barriers to store and erase data.
- Another remarkable use is the Scanning Tunnelling Microscope (STM), which revolutionized nanotechnology. This instrument brings a sharp tip extremely close to a surface, and electrons tunnel between the tip and the surface. By measuring this tunnelling current, scientists can map surfaces at the atomic scale, even “seeing” individual atoms.
- Tunnelling also plays a role in quantum computing and superconductivity. In Josephson junctions, where two superconductors are separated by a thin insulating barrier, pairs of electrons can tunnel across, giving rise to highly sensitive devices like SQUIDs (Superconducting Quantum Interference Devices), which can detect extremely faint magnetic fields.
- Even in biology, tunnelling is believed to contribute to enzyme reactions, where tiny particles like protons or electrons tunnel during biochemical processes, making reactions faster than classical chemistry would predict
- Quantum tunnelling and the light speed threshold (the universal speed limit of relativity) seem to be pulling in opposite directions at first glance. Relativity says: no particle carrying information or mass can travel faster than the speed of light in vacuum.
- Quantum tunnelling, on the other hand, sometimes appears to let a particle “get through” a barrier faster than if it had gone over or around it—almost as if it were cheating the speed limit
- When a particle tunnels through a barrier, its wave function (the mathematical object that describes its probability of being somewhere) extends into the barrier. If the barrier is thin enough, there’s a finite chance that the particle will show up on the other side.
- Now, the time it takes for this tunnelling to occur is strange. In some experiments, it looks like particles “emerge” on the other side almost instantly, faster than light could have crossed the same distance.
- But this doesn’t mean the particle literally travels through the barrier at superluminal speed. Instead, tunnelling is a non-classical process where the concept of a well-defined trajectory inside the barrier simply doesn’t apply.
- In fact, most physicists say: the particle doesn’t really “cross” the barrier in the ordinary sense—it’s more accurate to say that the probability of finding it on the other side suddenly becomes nonzero.
- Crucially, no usable information or signal can be transmitted faster than light via tunnelling. This is why relativity is not violated. The appearance of faster-than-light behaviour comes from how we interpret timing in quantum processes, not from actual superluminal motion
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- The National Quantum Mission (NQM) is an initiative launched by the Government of India in 2023 to advance research and development in quantum science and technology. With a focus on four core areas—Quantum Computing, Quantum Communication, Quantum Sensing & Metrology, and Quantum Materials & Devices—the mission seeks to position India as a global leader in quantum innovation.
- The mission is funded with an allocation of ₹6,003.65 crore over a span of eight years (2023-2031) and aims to drive both scientific breakthroughs and industrial applications. A key feature of the mission is the establishment of four Thematic Hubs (T-Hubs), each dedicated to one of the key areas, to address specific research objectives and challenges in quantum technologies.
- The NQM is expected to support a range of applications, from secure communication systems to advanced computing, with the potential to transform fields like healthcare, defense, and cryptography
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For Prelims: Quantum computing, supercomputers, Qiskit Runtime, IBM, National Mission on Quantum Technologies and Applications, superconductors,
For Mains:
1. What is Quantum computing? Discuss the need for Quantum Computers in emerging countries like India. (250 Words)
2. What are quantum computers and how are they different from conventional computers? Where does India stand in the race to build quantum computers that can realise their full potential? (250 Words)
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Previous Year Questions
1. India's first Supercomputer is (TSPSC AEE 2015)
A. Aditya
B. Param Yuva
C. Param
D. Vikram-100
Answer: C
2. What is the full form of IBM? (SSC Steno 2017)
A. International Business Machine
B. Indian Beta Machine
C. Integral Business Machine
D. Internal Beta Machine
Answer: A
3. Which one of the following is the context in which the term "qubit" is mentioned? (UPSC 2022)
A. Cloud Services
B. Quantum Computing
C. Visible Light Communication Technologies
D. Wireless Communication Technologies
Answer: B
4. Quantum computing uses (ACC 124 CGAT 2021)
A. Qubit
B. Bits
C. Bytes
D. Qubytes
Answer: A
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RENEWABLE ENERGY
1. Context
2. Why use Renewable energy
- Today we primarily use fossil fuels to heat and power our homes and fuel our cars.
- It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but we have a limited supply of these fuels on Earth.
- We’re using them much more rapidly than they are being created. Eventually, they will run out.
- And because of safety concerns and waste disposal problems, the United States will retire much of its nuclear capacity by 2020.
- In the meantime, the nation’s energy needs are expected to grow by 33 per cent during the next 20 years.
- Renewable energy can help fill the gap
- Even if we had an unlimited supply of fossil fuels, using renewable energy is better for the environment.
- We often call renewable energy technologies “clean” or “green” because they produce few if any pollutants.
- Burning fossil fuels, however, sends greenhouse gases into the atmosphere, trapping the sun’s heat and contributing to global warming.
- Climate scientists generally agree that the Earth’s average temperature has risen in the past century.
- If this trend continues, sea levels will rise, and scientists predict that floods, heat waves, droughts, and other extreme weather conditions could occur more often.
- Other pollutants are released into the air, soil, and water when fossil fuels are burned.
- These pollutants take a dramatic toll on the environment—and humans.
- Air pollution contributes to diseases like asthma.
- Acid rain from sulfur dioxide and nitrogen oxides harms plants and fish. Nitrogen oxides also contribute to smog.
- Renewable energy will also help us develop energy independence and security.
- Replacing some of our petroleum with fuels made from plant matter, for example, could save money and strengthen our energy security.
- Renewable energy is plentiful, and the technologies are improving all the time.
- There are many ways to use renewable energy.
- Most of us already use renewable energy in our daily lives.
2.1.Hydropower
- Hydropower is our most mature and largest source of renewable power, producing about 10 per cent of the nation’s electricity.
- Existing hydropower capacity is about 77,000 megawatts (MW). Hydropower plants convert the energy in flowing water into electricity.
- The most common form of hydropower uses a dam on a river to retain a large reservoir of water. Water is released through turbines to generate power.
- “Run of the river” systems, however, divert water from the river and direct it through a pipeline to a turbine.
- Hydropower plants produce no air emissions but can affect water quality and wildlife habitats.
2.2.Bioenergy
- Bioenergy is the energy derived from biomass (organic matter), such as plants. If you’ve ever burned wood in a fireplace or campfire, you’ve used bioenergy.
- But we don’t get all of our biomass resources directly from trees or other plants.
- Many industries, such as those involved in construction or the processing of agricultural products, can create large quantities of unused or residual biomass, which can serve as a bioenergy source.
2.3.Geothermal Energy
- The Earth’s core, 4,000 miles below the surface, can reach temperatures of 9000° F.
- This heat—geothermal energy—flows outward from the core, heating the surrounding area, which can form underground reservoirs of hot water and steam.
- These reservoirs can be tapped for a variety of uses, such as to generate electricity or heat buildings.
- By using geothermal heat pumps (GHPs), we can even take advantage of the shallow ground’s stable temperature for heating and cooling buildings.
2.4.Solar Energy
- Solar technologies tap directly into the infinite power of the sun and use that energy to produce heat, light, and power.
2.5. Wind Energy
- For hundreds of years, people have used windmills to harness the wind’s energy.
- Today’s wind turbines, which operate differently from windmills, are a much more efficient technology.
- Wind turbine technology may look simple: the wind spins turbine blades around a central hub; the hub is connected to a shaft, which powers a generator to make electricity.
- However, turbines are highly sophisticated power systems that capture the wind’s energy using new blade designs or airfoils.
- Modern, mechanical drive systems, combined with advanced generators, convert that energy into electricity.
- Wind turbines that provide electricity to the utility grid range in size from 50 kW to 6
- Wind energy has been the fastest growing source of energy since 1990.
2.6.Ocean Energy
- The ocean can produce two types of energy: thermal energy from the sun’s heat, and mechanical energy from the tides and waves.
- Ocean thermal energy can be used for many applications, including electricity generation.
- Electricity conversion systems use either the warm surface water or boil the seawater to turn a turbine, which activates a generator.
- The electricity conversion of both tidal and wave energy usually involves mechanical devices.
- A dam is typically used to convert tidal energy into electricity by forcing the water through turbines and activating a generator.
- Meanwhile, wave energy uses mechanical power to directly activate a generator or to transfer to a working fluid, water, or air, which then drives a turbine/generator.
2.7.Hydrogen
- Hydrogen is high in energy, yet its use as a fuel produces water as the only emission.
- Hydrogen is the universe’s most abundant element and also its simplest.
- A hydrogen atom consists of only one proton and one electron.
- Despite its abundance and simplicity, it doesn’t occur naturally as a gas on the Earth.
- Today, industry produces more than 4 trillion cubic feet of hydrogen annually.
- Most of this hydrogen is produced through a process called reforming, which involves the application of heat to separate hydrogen from carbon. Researchers are developing highly efficient, advanced reformers to produce hydrogen from natural gas for what’s called Proton Exchange Membrane fuel cells.
3. Steps were taken by the government to promote Renewable energy
The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.
3.1.Distribution of prominent renewable energy Hubs
- Rajasthan
- Gujarat
- Andhra Pradesh
- Karnataka
- Telangana
- Tamil Nadu

3.2.Steps taken
- Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route,
- Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
- Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug-and-play basis,
- Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc,
- Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
- Setting up of Project Development Cell for attracting and facilitating investments,
- Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Deployment of large-scale renewable energy (RE) has the potential to create numerous employment opportunities in rural India in the coming decades. By 2030, it is projected that the clean-energy sectors could provide jobs for around one million individuals in the country.
- However, the expansion of RE may have significant impacts on communities reliant on the land, involving changes in land use, modifications to ecosystems, shifts in livelihoods, and overall effects on land productivity.
- As India progresses in scaling up RE, striking a balance between these interests may result in project commissioning delays, contributing to a waning interest among developers in RE tenders.
- In 2020, wind developers, facing setbacks such as delays in land allocation, sought to terminate power-purchase agreements for approximately 565 MW wind capacity signed with the Solar Energy Corporation of India (SECI), prompting a decline in developers' enthusiasm for RE projects. Commissioning delays not only pose substantial financial risks but also jeopardize the reputation of RE developers.
- In the pursuit of responsible RE deployment and the enhancement of communities in and around project sites, many developers actively support local development activities and community-led programs through corporate social responsibility (CSR) initiatives.
- As an illustration, Tata Power Solar has established integrated vocational training programs for women and youth in multiple project sites.
- Given the pivotal role of project developers in interacting with communities during land acquisition, construction, and operational phases, they play a crucial role in driving responsible practices. Additionally, regulators and investors prioritize assessing the responsible practices of new projects.
- To encourage all developers to contribute to the rapidly growing RE ecosystem and promote responsible practices, two essential prerequisites need to be addressed

