TARIFFS
2. What is a Tariff?
- Most countries are limited by their natural resources and ability to produce certain goods and services.
- They trade with other countries to get what their population needs and demands. However, trade isn't always conducted in an amenable manner between trading partners.
- Policies, geopolitics, competition, and many other factors can make trading partners unhappy. One of the ways governments deal with trading partners they disagree with is through tariffs.
- A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.
3. Key Take Aways
- Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
- Tariffs often result in unwanted side effects, such as higher consumer prices.
- Tariffs have a long and contentious history, and the debate over whether they represent good or bad policy still rages.
4. History of Tariffs
4.1 Pre Modern Europe
- In pre-modern Europe, a nation's wealth was believed to consist of fixed, tangible assets, such as gold, silver, land, and other physical resources.
- Trade was seen as a Zero-sum game that resulted in either a clear net loss or a clear net gain of wealth.
- If a country imported more than it exported, a resource, mainly gold, would flow abroad, thereby draining its wealth. Cross-border trade was viewed with suspicion, and countries preferred to acquire colonies with which they could establish exclusive trading relationships rather than trading with each other.
- This system, known as mercantilism, relied heavily on tariffs and even outright bans on trade. The colonizing country, which saw itself as competing with other colonizers, would import raw materials from its colonies, which were generally barred from selling their raw materials elsewhere.
- The colonizing country would convert the materials into manufactured wares, which it would sell back to the colonies. High tariffs and other barriers were implemented to ensure that colonies only purchased manufactured goods from their home countries.
4.2 Late 19th and early 20th Centuries
- Relatively free trade enjoyed a heyday in the late 19th and early 20th centuries when the idea took hold that international commerce had made large-scale wars between nations so expensive and counterproductive that they were obsolete.
- World War I proved that idea wrong, and nationalist approaches to trade, including high tariffs, dominated until the end of World War II.
- From that point on, free trade enjoyed a 50-year resurgence, culminating in the creation in 1995 of the World Trade Organisation (WTO), which acts as an international forum for settling disputes and laying down ground rules.
- Free trade agreements, such as the North American Free Trade Agreement (NAFTA) now known as the United States-Mexico-Canada Agreement (USMCA) and the European Union (EU), also proliferated.
4.3 In the 21st Century
- Skepticism of this model sometimes labeled neoliberalism by critics who tie it to 19th-century liberal arguments in favor of free trade grew, however, and Britain in 2016 voted to leave the European Union.
- That same year Donald Trump won the U.S. presidential election on a platform that included a call for tariffs on Chinese and Mexican imports, which he implemented when he took office.
- Critics of tariff-free multilateral trade deals, who come from both ends of the political spectrum, argue that they erode national sovereignty and encourage a race to the bottom regarding wages, worker protections, and product quality and standards.
- Meanwhile, the defenders of such deals counter that tariffs lead to trade wars, hurt consumers, and hamper innovation.
5. Understanding Tariffs
- Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.
- A key point to understand is that a tariff affects the exporting country because consumers in the country that imposed the tariff might shy away from imports due to the price increase. However, if the consumer still chooses the imported product, then the tariff has essentially raised the cost to the consumer in another country.
There are two types of tariffs:
- A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car.
- An ad-valorem tariff is levied based on the item's value, such as 5% of an import's value.
6. Why Government Imposes Tariffs?
Tariffs can be used to raise revenues for governments. This kind of tariff is called a revenue tariff and is not designed to restrict imports. For instance, in 2018 and 2019, President Donald Trump and his administration imposed tariffs on many items to rebalance the trade deficit. In the fiscal year 2019, customs duties received were $18 billion. In FY 2020, duties received were $21 billion.
6.2 Protect Domestic Industries
Governments can use tariffs to benefit particular industries, often doing so to protect companies and jobs. For example, in May 2022, President Joe Biden proposed a 25% ad valorem tariff on steel articles from all countries except Canada, Mexico, and the United Kingdom (the U.K. has a quota of an aggregate of 500,000 metric tons it can trade with the U.S.). This proclamation reopens the trade of specific items with the U.K. while taking measures to protect domestic U.S. steel manufacturing and production jobs.
6.3 Protect Domestic Consumers
By making foreign-produced goods more expensive, tariffs can make domestically-produced alternatives seem more attractive. Some products made in countries with fewer regulations can harm consumers, such as a product coated in lead-based paint. Tariffs can make these products so expensive that consumers won't buy them.
6.4 Protect National Interests
Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage. For example, when Russia invaded Ukraine, much of the world protested by boycotting Russian goods or imposing sanctions. In April 2022, President Joe Biden suspended normal trade with Russia. In June, he raised the tariff on Russian imports not prohibited by the April suspension to 35%.
7. Advantages of Tariffs
- Produce revenues: As discussed, tariffs provide a government a chance to bring in more money. This can relieve some of the tax burdens felt by a county's citizens and help the government to reduce deficits.
- Open negotiations: Tariffs can be used by countries to open negotiations for trade or other issues. Each side can use tariffs to help them create economic policies and talk with trade partners.
- Support a nation's goals: One of the most popular uses for tariffs is to use them to ensure domestic products receive preference within a country to support businesses and the economy.
- Make a market predictable: Tariffs can help stabilize a market and make prices predictable.
8. Disadvantages of Tariffs
- Create issues between governments: Many nations use tariffs to punish or discourage actions they disapprove of. Unfortunately, doing this can create tensions between two countries and lead to more problems.
- Initiate trade wars: A typical response for a country with tariffs imposed on it is to respond similarly, creating a trade war in which neither country benefits from the other.
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For Prelims: Tariffs, Zero-sum game, Cross-border trade, World Trade Organisation (WTO), North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA), and the European Union (EU). For Mains: 1. What is a Tariff and explain why government imposes tariffs. Discuss the advantages and disadvantages associated with Tariffs. (250 Words). |
CAR T-CELL THERAPY
1. Context
2. What is CAR T- Cell therapy?
3. What are CAR T-Cells?
- Chimeric antigen receptor (CAR) T-cell therapies represent a quantum leap in the sophistication of cancer treatment. Unlike chemotherapy or immunotherapy, which require massproduced injectable or oral medication, CAR T-cell therapies use a patient’s own cells.
- They are modified in the laboratory to activate T-cells, a component of immune cells, to attack tumors. These modified cells are then infused back into the patient’s bloodstream after conditioning them to multiply more effectively.
- The cells are even more specific than targeted agents and directly activate the patient’s immune system against cancer, making the treatment more clinically effective. This is why they’re called ‘living drugs’.

4. How does it work?
- The therapy targets leukaemia and lymphoma. Leukaemia is a cancer of blood-forming tissues, including bone marrow. Lymphoma is a cancer of the lymphatic system, which is part of the body's germ-fighting network.
- It uses lentiviral technology. In gene therapy, this is a method of inserting, modifying or deleting genes in organisms using lentivirus, a family of viruses responsible for diseases such as AIDS (acquired immunodeficiency syndrome).
- As a part of the treatment, a specific type of white blood cells and T cells are changed in the lab so they can find and destroy cancer cells.
- It is also sometimes referred to as a type of cell-based gene therapy because it involves altering genes inside T cells to help them attack cancerous cells.
5. How has systemic therapy evolved?
- Systemic therapy’s earliest form was chemotherapy; when administered, it preferentially acts on cancer cells because of the latter’s rapid, unregulated growth and poor healing mechanisms.
- Chemotherapeutic drugs have modest response rates and significant side effects as they affect numerous cell types in the body.
- The next stage in its evolution was targeted agents, also known as immunotherapy. Here the drugs bind to specific targets on cancer or on the immune cells that help the tumour grow or spread.
- This method often has fewer side effects as the impact on non tumour cells is limited. However, it is effective only against tumours that express these targets.
6. Will it be an expensive treatment in India?
- In India, introducing any new therapy faces the twin challenges of cost and value.
- Critics argue that developing facilities in India may be redundant and/or inappropriate as even when it becomes cheaper, CAR T-cell therapy will be unaffordable to most Indians.
- Those who are affluent and require the therapy currently receive it abroad anyway.
- While this is true, it may be the right answer to the wrong question. Having access to a global standard of care is every patient’s right; how it can be made more affordable can be the next step.
- Investments in developing these technologies in India represent the hope that, as with other initially expensive treatments like robotic surgery, we will be able to provide economies of scale.
- The sheer volume of patients in India has the potential to drive the cost of treatment down.
For Prelims & Mains
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For Prelims: CAR T-Cells, CAR T- Cell therapy, Surgery, Radiotherapy, Systemic therapy, Chimeric antigen receptor (CAR), Chemotherapy or immunotherapy, Lentivirus, and Cell-based gene therapy.
For Mains: 1. What is CAR T- Cell therapy? Explain how it works and in what type of cancer can it be used.
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ARTICLE 371
Part XXI of the Indian Constitution is titled "Temporary, Transitional and Special Provisions". It contains articles that deal with
- Special provisions for certain states: These provisions address the specific needs and circumstances of various states, aiming to ensure their smooth integration into the Indian Union and protect the interests of their population. This includes articles like:
- Article 371, which grants special provisions to 12 Indian states, including six Northeastern states. These provisions cover aspects like the allotment of funds for development, reservation in public employment and educational institutions, and special representation in the state legislature.
- Article 370, which was abrogated in 2019, previously granted special autonomous status to the state of Jammu and Kashmir.
- Temporary provisions: These provisions were meant to be temporary arrangements to facilitate the smooth transition from the pre-independence system to the new constitutional framework. However, some of these provisions, like those related to the distribution of legislative powers between the Centre and states, continue to be relevant even today.
- Transitional provisions: These provisions helped bridge the gap between the old and new legal systems and ensured a smooth transfer of power and authority.
3. Article 371 of the Constitution
Article 371 of the Indian Constitution is the first of a series of articles under Part XXI titled "Temporary, Transitional and Special Provisions". These articles provide special provisions for specific states, addressing their unique needs and circumstances.
Article 371 itself empowers the Parliament to
- Establish separate development boards for specific regions within the states of Maharashtra (Vidarbha and Marathwada) and Gujarat (Saurashtra and Kutch).
- Ensure equitable allocation of funds for development expenditure across these regions.
- Mandate the placement of a report on the functioning of these development boards before the respective state legislative assemblies every year.
4. Articles 371 to 371-J
Articles 371A to 371J have been introduced under Part XXI, each addressing the specific needs and circumstances of various states.
Nagaland (Article 371A, 13th Amendment Act, 1962)
- Parliament can't legislate in matters of Naga religion or social practices, the Naga customary law and procedure, administration of civil and criminal justice involving decisions according to Naga customary law and ownership and transfer of land and its resources, without the concurrence of the Legislative Assembly.
- This provision was inserted in the Constitution after a 16-point agreement between the Centre and the Naga People's Convention in 1960, which led to the creation of Nagaland in 1963.
- Also, there is a provision for a 35-member regional council for the Tuensang district, which elects the Tuensang members in the Assembly.
- A member from the Tuensang district is the Minister for Tuensang Affairs: The Governor has the final say on Tuensang-related matters.
- President may provide for the constitution and functions of a committee of elected members from the Hill areas in the Assembly; entrust "special responsibility" to the Governor to ensure its proper functioning.
- The Governor has to file a report every year on this to the President.
- The president must ensure "equitable opportunities and facilities" in "Public employment and education to people from different parts of the state";
- he may require the state government to organise "any class or classes of posts in the civil service of or any class or classes of civil posts under, the State into different local cadres for different parts of the State" and allow them.
- The President has similar powers vis-a-vis admissions in any university or state government-run educational institution.
- Also, he may provide for the setting up of an administrative tribunal outside the jurisdiction of the High Court to deal with issues of appointment, allotment or promotion in state civil services.
- Article 371E allows for the establishment of a university in Andhra Pradesh by a law of Parliament. But this is not a "special provision".
- The members of the Legislative Assembly of Sikkim shall elect the representative of Sikkim in the House of the People.
- To protect the rights and interests of various sections of the population of Sikkim, Parliament may provide for the number of seats in the Assembly, which may be filled only by candidates from those sections.
- The governor shall have "Special responsibility for peace and for an equitable arrangement for ensuring the social and economic advancement of different sections of the population".
- All earlier laws in territories that formed Sikkim shall continue and any adaptation or modification shall not be questioned in any court.
- The Governor has a special responsibility for law and order and "he shall, after consulting the Council of Ministers, exercise his judgment as to the action to be taken".
- Should a question arise over whether a particular matter is one in which the Governor is "required to act in the exercise of his judgment, the decision of the Governor in his discretion shall be final" and "shall not be called in question"?
- "equitable allocation of funds for developmental expenditure over the said region"
- "equitable allocation of funds for developmental expenditure over the said region"; and
- "equitable opportunities and facilities" for people of this region in government jobs and education.
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For Prelims: Part XII of the Constitution, Article 371, Special Provisions, Ladakh
For Mains:
1. Discuss the significance of Article 371 in the Indian Constitution and its role in addressing the unique needs and circumstances of certain states. Evaluate its effectiveness in ensuring the smooth integration of these states into the Indian Union while safeguarding their interests. (250 Words)
2. Imagine you are a policymaker involved in the decision-making process regarding Ladakh's demand for special protection. Outline the key factors you would consider before formulating a recommendation and suggest potential alternative solutions that could address the concerns of the Ladakhi people. (250 words)
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Previous Year Questions
1. The status of "Special Category States" is given to certain states to target the fund flow for better-balanced growth. Which of the following states fall under this category? (UPSSSC Lower PCS Prelims 2016)
1. Rajasthan
2. Uttarakhand
3. Bihar
4. Jammu & Kashmir
5. Himachal Pradesh
6. Jharkhand
Select the correct answer using the codes given below:
A. 1, 5 and 6 B. 2, 4 and 5 C. 3, 5 and 6 D. 1, 3 and 6
2. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? (UPSC 2015)
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
3. Based on the Sixth Schedule of Indian Constitution, with respect to the tribal areas of Assam, Meghalaya, Tripura and Mizoram Which of the following can the Governor of a State do? (DSSSB PRT General Section Officer 2019)
1. Can create a new autonomous district
2. The area of atonomous district can be increased
A. 1 Only B. 2 Only C. Both 1 and 2 D. Neither 1 nor 2
4. If a particular area is brought under the Fifth Schedule of the Constitution of India, which one of the following statements best reflects the consequence of it? (UPSC 2022)
A. This would prevent the transfer of land of tribal people to non-tribal people.
B. This would create a local self-governing body in that area.
C. This would convert that area into a Union Territory.
D. The State having such areas would be declared a Special Category State.
5. Article _____ of the Constitution of India deals with provisions related to the administration and control of Scheduled Areas and Scheduled Tribes. (SSC CGL 2020)
A. 222(1) B. 244(1) C. 244(2) D. 222(2)
6. The National Commission for Backward Classes (NCBC) was formed by insertion of Article ______ in the Constitution of India. (SSC CGL 2020)
A. 328B B. 338A C. 338B D. 328A
7. When did the Constitution of Jammu and Kashmir come into force? (UPSC CAPF 2016) A.26th January 1957 B. 15th August 1947 C. 25th July 1956 D.14th November 1947
8. State Legislature of Jammu and Kashmir can confer special rights and privileges on permanent residents of J and K with respect to - (MPSC 2019) Find the correct options below. (a) Employment under State Government (b) Settlement in the state (c) Acquisition of immovable property (d) Right to Scholarship (e) Right to entry into heritage sites A. (a), (b), (c), (d), (e) B. (a), (b), (c), (d) C. (a), (b), (c) D. (a), (b) Answers: 1-A, 2-A, 3-C, 4-A, 5-B, 6-B, 7-A, 8-B
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Source: The Indian Express
CAPITAL EXPENDITURES (CapEx)
Capital expenditures can cover a wide range of items and projects, including:
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Property and Real Estate: Purchasing or renovating buildings, land, or other real estate properties for business use.
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Machinery and Equipment: Buying, upgrading, or maintaining machinery and equipment used in manufacturing, production, or other operational processes.
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Vehicles: Acquiring and maintaining vehicles for business purposes, such as delivery trucks or company cars.
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Technology and Software: Investing in computer hardware, software, and IT infrastructure to improve efficiency and productivity.
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Infrastructure: Building or upgrading infrastructure projects like roads, bridges, and utility systems that are essential for business operations.
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Research and Development (R&D): Allocating funds to develop new products, services, or technologies that will benefit the company in the long term.
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Acquisitions: Purchasing other companies or assets that are expected to contribute to the company's growth and profitability.
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Leasehold Improvements: Making improvements to leased properties or facilities to meet the company's specific needs.
Capital expenditures (CapEx) can be categorized into several types based on the nature of the investment and the assets being acquired or improved. Here are some common types of capital expenditures:
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Maintenance Capital Expenditures: These are expenditures made to maintain the existing physical assets in their current condition. They are necessary to keep assets operational and extend their useful life. Maintenance CapEx includes routine repairs, servicing, and replacement of worn-out parts. It helps prevent asset deterioration and ensures ongoing business operations.
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Expansion Capital Expenditures: Expansion CapEx involves investments made to increase the productive capacity of a business or to enter new markets. This can include building new facilities, purchasing additional machinery and equipment, and expanding existing operations. Expansion CapEx is typically aimed at growing the business and increasing revenue.
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Replacement Capital Expenditures: Replacement CapEx involves replacing existing assets with new ones of similar or improved functionality. This is done when the old assets become obsolete, inefficient, or unreliable. For example, replacing outdated computer servers or upgrading manufacturing equipment to improve efficiency.
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Strategic Capital Expenditures: These are investments made to achieve specific strategic objectives of the company. This can include investments in research and development (R&D) to develop new products or technologies, entering new markets, or acquiring another company to gain a competitive advantage.
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Compliance and Safety Capital Expenditures: Some CapEx is required to ensure that a business complies with safety regulations and industry standards. This can include investments in safety equipment, environmental compliance, or upgrades to meet changing regulatory requirements.
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Information Technology (IT) Capital Expenditures: Investments in IT infrastructure, software, and hardware fall into this category. It includes spending on servers, computer systems, software development, and data center facilities.
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Infrastructure Capital Expenditures: Governments and businesses may invest in infrastructure projects like building or repairing roads, bridges, airports, railways, and utility systems. These projects contribute to the overall development and functioning of a region or business.
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Research and Development (R&D) Capital Expenditures: Companies invest in R&D to develop new products, services, or technologies. R&D CapEx can include expenditures on laboratory facilities, equipment, and personnel involved in research and product development.
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Leasehold Improvements: These expenditures involve customizing and improving leased properties or facilities to meet a company's specific needs. They may include renovations, interior design, and installation of equipment for leased spaces.
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Marketing and Advertising Capital Expenditures: While marketing and advertising expenses are typically considered operating costs, certain marketing investments may be classified as CapEx if they have a long-term impact, such as building a brand or expanding market reach through the acquisition of assets like trademarks or copyrights.
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Capital spending can stimulate economic growth by increasing the productive capacity of an economy. When businesses invest in new machinery, technology, or infrastructure, they become more efficient and can produce more goods and services. This increased production can lead to higher economic output and GDP growth.
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Capital investments often require labor for construction, maintenance, and operation. This can lead to job creation, reducing unemployment rates and boosting consumer spending as more people have income to spend.
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Capital spending typically results in the adoption of advanced technology and improved processes. This enhances productivity, which is a key driver of long-term economic growth. Higher productivity means more can be produced with the same or fewer resources.
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Investments in research and development (R&D) and technology can foster innovation and increase a country's competitiveness on the global stage. This can attract foreign investment and strengthen an economy's position in international markets.
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Capital spending on infrastructure projects like roads, bridges, and utilities can enhance the overall business environment. Efficient infrastructure reduces transportation costs, facilitates trade, and attracts investment
| Subject | Capital Expenditure | Revenue Expenditure |
| Nature | CapEx represents investments in assets that are expected to provide economic benefits to a business over an extended period, typically more than one accounting period. These assets are used to generate revenue or provide long-term benefits to the company. Examples include the purchase of buildings, machinery, equipment, vehicles, and intangible assets like patents and trademarks. | Revenue expenditure, on the other hand, represents day-to-day operating expenses that are incurred to maintain the normal business operations and generate immediate revenue. These expenses are considered part of the regular cost of doing business. Examples include salaries and wages, rent, utilities, office supplies, and advertising expenses. |
| Timing | CapEx is incurred when a business acquires or improves a long-term asset. The benefits from the investment are expected to be realized over several accounting periods, and the asset's value is usually spread out through depreciation or amortization over its useful life. | Revenue expenditure is incurred for ongoing, day-to-day operations and is typically related to the current accounting period. These expenses are fully recognized in the income statement in the period they are incurred. |
| Accounting | CapEx is recorded on the balance sheet as an asset. It is then depreciated (for physical assets) or amortized (for intangible assets) over its estimated useful life. The cost is gradually expensed over time, matching the cost with the revenue generated from the asset. | Revenue expenditures are immediately expensed in the income statement in the period they occur. They reduce the company's net income for that period. |
| Profitability | CapEx does not directly impact the current period's profitability to the same extent as revenue expenditure. Instead, it affects profitability over several accounting periods as depreciation or amortization expenses are recognized. | Revenue expenditures directly impact the current period's profitability, as they are expensed immediately, reducing the net income for the period. |
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For Prelims: Economic and Social Development
For Mains: General Studies III: Government Budgeting and Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1.With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct ? (UPSC CSE 2022)
1. Acquiring new technology is capital expenditure.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
Select the correct answer using the code given below :
A. 1 Only
B. 2 Only
C. Both 1 and 2
D. Neither 1 nor 2
Answer (A)
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AYUSHMAN BHARAT
1. Context
2. About Ayushman Bharat Scheme
The Ayushman Bharat scheme, officially known as the Pradhan Mantri Jan Arogya Yojana (PM-JAY), is a flagship healthcare initiative launched by the Government of India in September 2018. It is aimed at providing financial protection and access to quality healthcare services to a significant portion of India's population, especially those who are economically disadvantaged and vulnerable.
The scheme has two main components:
- Health and Wellness Centers (HWCs): This component aims to transform the existing sub-centers and primary health centers into Health and Wellness Centers. These centers serve as the first point of contact for individuals seeking healthcare services. They offer a range of preventive, promotive, and basic healthcare services, including maternal and child health services, communicable disease management, and health education.
- Pradhan Mantri Jan Arogya Yojana (PM-JAY): PM-JAY is the larger component of the Ayushman Bharat scheme, focused on providing health insurance coverage to economically vulnerable families. It offers financial protection against catastrophic health expenses by covering the cost of hospitalization and certain medical procedures. PM-JAY provides coverage up to ₹5 lahks (per family per year) for secondary and tertiary care hospitalization. This includes coverage for a wide range of medical treatments, surgeries, and therapies.
3. Key features of PM-JAY include:
- Universal Coverage: PM-JAY covers over 10 crore (100 million) vulnerable and economically disadvantaged families, which is approximately 50 crore individuals, making it one of the largest government-funded healthcare insurance programs in the world.
- Cashless Transactions: Beneficiaries can avail of cashless and paperless healthcare services at any empanelled public or private hospital across the country.
- Portability: The scheme is portable, meaning beneficiaries can access services in any part of the country, irrespective of where they are registered under the scheme.
- No Cap on Family Size: The benefits under the scheme are not limited by family size or age, providing comprehensive coverage to all eligible family members.
- Priority for Women and Senior Citizens: The scheme gives priority to women, senior citizens, and individuals from marginalized communities.
- Empanelled Hospitals: The scheme has a network of public and private hospitals that have been empanelled to provide services under PM-JAY.
4. What is National Health Authority (NHA)?
- The National Health Authority (NHA) is the apex body responsible for the implementation and management of the Pradhan Mantri Jan Arogya Yojana (PM-JAY), also known as Ayushman Bharat, in India.
- It was established as an autonomous body by the Government of India in January 2019.
- The NHA plays a crucial role in the effective execution of the world's largest government-funded health insurance scheme.
Key functions and responsibilities of the National Health Authority include:
- Policy Formulation: The NHA is responsible for formulating policies and guidelines for the implementation of PM-JAY. It works to ensure that the scheme aligns with the broader objectives of universal health coverage and affordable healthcare for all.
- Enrollment and Beneficiary Identification: The NHA oversees the process of identifying and enrolling eligible beneficiaries for PM-JAY. This involves creating and maintaining a comprehensive database of eligible families to ensure accurate and efficient access to healthcare services.
- Empanelment of Hospitals: The NHA empanels both public and private hospitals to participate in the scheme. These hospitals are evaluated based on their infrastructure, facilities, and willingness to provide services under PM-JAY. Empanelled hospitals provide cashless and quality healthcare services to beneficiaries.
- Claims Management: The NHA is responsible for managing the claims process, which includes processing and reimbursing hospitals for the healthcare services provided to beneficiaries. This process ensures that beneficiaries can access medical treatment without facing financial barriers.
- Monitoring and Quality Assurance: The NHA monitors the implementation of PM-JAY to ensure that the services provided by empanelled hospitals meet quality standards. It conducts regular audits and assessments to maintain the quality of healthcare services.
- Technology and Data Management: The NHA employs technology extensively to manage beneficiary data, hospital empanelment, claims processing, and monitoring. This helps in creating an efficient and transparent system for the implementation of the scheme.
- Capacity Building: The NHA works on capacity-building initiatives for stakeholders involved in the implementation of PM-JAY. This includes training for healthcare providers, government officials, and other relevant personnel.
- Research and Innovation: The NHA focuses on research and innovation to improve the implementation of PM-JAY. It explores ways to enhance the scheme's reach, effectiveness, and impact.
5. Is National Health Authority a Statutory Body?
- The National Health Authority (NHA) is a statutory body. It was established by an Act of Parliament known as the " National Health Authority Act, 2019.
- The Act was passed to provide a legal framework for the creation and functioning of the NHA, which is responsible for the implementation of the Pradhan Mantri Jan Arogya Yojana (PM-JAY), also known as Ayushman Bharat.
- The National Health Authority Act, 2019, outlines the composition, Powers, functions, and responsibilities of the NHA.
- It grants the NHA the authority to manage and oversee the implementation of PM-JAY, which is one of the largest government-funded health insurance schemes in the world.
- The Act also provides the NHA with the necessary legal framework to carry out its role effectively, including policy formulation, enrollment of beneficiaries, empowerment of hospitals, claims processing, and quality assurance.
- As a statutory body, the National Health Authority operates within the legal framework provided by the Act and has the authority to make decisions, issue guidelines, and implement policies related to the functioning of PM-JAY.
- This legal status ensures that the NHA has the necessary autonomy and powers to carry out its responsibilities in the implementation of the healthcare scheme.
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For Prelims: Ayushman Bharat, Pradhan Mantri Jan Aarogya Yojana (PMJAY), the Comptroller and Auditor General of India (CAG), Health and Wellness Centers (HWCs), National Health Authority (NHA).
For Mains: 1. Discuss the significance, achievements, and challenges of the Ayushman Bharat scheme in the context of achieving universal health coverage in India. (250 Words).
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Previous year Question
1. With reference to Ayushman Bharat Digital Mission, consider the following statements: (UPSC 2022)
1. Private and public hospitals must adopt it.
2. As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.
3. It has seamless portability across the country.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: B
2. With reference to 'Ayushman Bharat Yojana' which of the following statement(s) is/are correct? (UPPSC 2020)
1. This Yojana provides free health insurance of Rs. 5 lahks per person.
2. The expenses incurred in this Scheme (Yojana) is shared between the Centre and State in a 60:40 ratio.
Select the correct answer from the codes given below.
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
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CRITICAL MINERALS
- Rare Earth Elements (REEs): neodymium, dysprosium, terbium
- Lithium
- Cobalt
- Graphite
- Gallium
- Indium
- Tungsten
- Platinum Group Metals (PGMs)
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- Minerals such as copper, lithium, nickel, and cobalt, along with certain rare earth elements, are considered critical due to their essential role in the global transition to greener and cleaner energy sources.
- According to the International Energy Agency (IEA), the demand for lithium surged by 30% in 2023, with nickel, cobalt, graphite, and rare earth elements experiencing growth between 8% and 15%, collectively valued at $325 billion.
- The IEA's Global Critical Minerals Outlook 2024 report indicates that achieving the world's goal of limiting global warming to 1.5 degrees Celsius within a net-zero emissions framework will necessitate a significant increase in demand for these minerals.
- By 2040, copper demand is projected to rise by 50%, nickel, cobalt, and rare earth elements by 100%, graphite by 300%, and lithium by 800%, which is vital for battery production.
- Developing sustainable supply chains for these minerals is therefore crucial. In India, the absence of readily available reserves has led to complete import dependence for minerals such as lithium, cobalt, and nickel.
- Although India possesses natural reserves of several critical minerals, they remain largely unexplored and untapped. For example, despite holding 11% of the world's ilmenite deposits, which is the primary source of titanium dioxide used in numerous applications, India still imports a billion dollars' worth of titanium dioxide annually, as noted by former Mines Secretary Vivek Bharadwaj.
- Additionally, the "lucky" discovery of lithium reserves in the Union Territory of Jammu and Kashmir (J&K) by the Geological Survey of India (GSI) while exploring for limestone has raised hopes for achieving some level of self-sufficiency in lithium. Announced in February as India's first lithium find, these reserves are estimated at 5.9 million tonnes, prompting the government to expedite their extraction.
- Recognizing the risks of relying on a limited number of countries for these minerals and their processing, the central government amended the Mines and Minerals (Development and Regulation) Act, 1957 in August 2023 to allow mining concessions for 24 critical and strategic minerals.
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For Prelims: Critical minerals, Ministry of Mines, carbon emissions, cleaner energy, lithium, cobalt, nickel, graphite, tin, copper, Selenium, Cadmium, Centre of Excellence on critical minerals, Australia's CSIRO, Geological Survey of India,
For Mains:
1. What are critical minerals? Discuss their significance for a country's economic development and national security. Explain how the identification of critical minerals helps in reducing import dependency and ensuring resource security. (250 Words)
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Previous Year Questions
1. With reference to the mineral resources of India, consider the following pairs: (UPSC 2010)
Mineral 90%Natural sources in
1. Copper Jharkhand
2. Nickel Orissa
3. Tungsten Kerala
Which of the pairs given above is/are correctly matched?
A. 1 and 2 only B. 2 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
2. Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals.' Why? (UPSC 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
3. In India, what is the role of the Coal Controller's Organization (CCO)? (UPSC 2022)
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas.
4. It ensures that coal mining companies deliver the coal to end users in the prescribed time. Select the correct answer using the code given below:
A. 1, 2 and 3 B. 3 and 4 only C. 1 and 2 only D. 1, 2 and 4
Answer: A
4. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020)
A. long-term damage done by a tonne of CO2 emission in a given year.
B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C. efforts put in by a climate refugee to adapt to live in a new place.
D. contribution of an individual person to the carbon footprint on the planet Earth.
Answer: A
5. Direction: It consists of two statements, one labelled as ‘Statement (I)’ and the others as ‘Statement (II)’. You are to examine these two statements carefully and select the answer using the codes given below: (UPSC ESE 2018)
Statement (I): Green energy refers to one which does not harm the ecosystem of planet earth. Statement (II): All renewable energy is green energy.
A. Both Statement (I) and Statement (II) individually true and Statement (II) is the correct explanation of Statement (I)
B. Both statement (I) and Statement (II) are individually true, but Statement (II) is not the correct explanation of Statement (I)
C. Statement (I) is true, but Statement (II) is false
D. Statement (I) is false, but Statement (II) is true
Answer: C
6. Which type of battery is used in the recently launched world's first fully electric cargo ship by change? (Delhi Police Constable 2017)
A. Lead Acid B. Manganese C. Lithium ion D. Nickel metal hydride
Answer: C
7. White gold is an alloy of (UPSC CAPF 2022)
A. gold, nickel and palladium
B. gold, cobalt and palladium
C. gold, titanium and platinum
D. gold, magnesium and palladium
Answer: A
8. Graphene is frequently in news recently. What is its importance? (UPSC 2012)
1. It is a two-dimensional material and has good electrical conductivity.
2. It is one of the thinnest but strongest materials tested so far.
3. It is entirely made of silicon and has high optical transparency.
4. It can be used as 'conducting electrodes' required for touch screens, LCDs and organic LEDs. Which of the statements given above are correct?
A. 1 and 2 only B. 3 and 4 only C. 1, 2 and 4 only D. 1, 2, 3 and 4
Answer: C
9. Graphite and diamonds are__________. (WBCS Prelims 2020)
A. isotopes B. isomers C. isotones D. allotropes
Answer: D
10. Consider the following statements: (UPSC 2020)
1. Coal ash contains arsenic, lead and mercury.
2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment. 3. High ash content is observed in Indian coal.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 3 only D. 1, 2 and 3
Answer: D
11. Which of the following can be found as pollutants in the drinking water in some parts of India? (UPSC 2013)
1. Arsenic
2. Sorbitol
3. Fluoride
4. Formaldehyde
5. Uranium
Select the correct answer using the codes given below.
A. 1 and 3 only B. 2, 4 and 5 only C. 1, 3 and 5 only D. 1, 2, 3, 4 and 5
Answer: C
12. In the context of solving pollution problems, what is/are the advantage/advantages of the bioremediation technique? (UPSC 2017)
1. It is a technique for cleaning up pollution by enhancing the same biodegradation process that occurs in nature.
2. Any contaminant with heavy metals such as cadmium and lead can be readily and completely treated by bioremediation using microorganisms.
3. Genetic engineering can be used to create microorganisms specifically designed for bioremediation.
Select the correct answer using the code given below:
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
13. Due to improper/indiscriminate disposal of old and used computers or their parts, which of the following are released into the environment as e-waste? (UPSC 2013)
1. Beryllium
2. Cadmium
3. Chromium
4. Heptachlor
5. Mercury
6. Lead
7. Plutonium
Select the correct answer using the codes given below.
A. 1, 3, 4, 6 and 7 only B. 1, 2, 3, 5 and 6 only
C. 2, 4, 5 and 7 only D. 1, 2, 3, 4, 5, 6 and 7
Answer: B
14. When was the Geological Survey of India (GSI) of India founded? (UPRVUNL Staff Nurse 2021)
A. 1851 B. 1951 C. 1871 D. 1931
Answer: A
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NATIONAL DISASTER MANAGEMENT AUTHORITY
1.Context
2.NDMA
- The National Disaster Management Authority (NDMA) is India's apex statutory body for disaster management.
- The NDMA was formally constituted on 27th September 2006, by the Disaster Management Act, 2005.
2.1.Composition
- The Prime Minister is its chairperson and it has nine other members. One of the nine members is designated as Vice-Chairperson.
| Disaster Management Act also envisaged the creation of State Disaster Management Authorities (SDMAs) headed by respective Cheif Ministers and the District Disaster Management Authorities (DDMA) headed by the District Collectors/District Magistrate and co-chaired by Chairpersons of the local bodies. |
- The primary responsibility for the management of disaster rests with the State Government concerned.
However, the National Policy on Disaster Management puts in place an enabling environment for all i.e. the Centre, State and District. - India is also a signatory to the Sendai Framework for Disaster Risk Reduction (SFDRR) which sets targets for disaster management.
3.Evolution of NDMA
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The tenth Five-Year Plan document also had, for the first time, a detailed chapter on Disaster Management.
The Twelfth Finance Commission was also mandated to review the financial arrangements for Disaster Management.
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4.Vision
| To build a safer and disaster-resilient India through a holistic, proactive, technology-driven and sustainable development strategy that involves all stakeholders and fosters a culture of prevention, preparedness and mitigation. |
- According to the NDMA website, India envisions the development of an ethos of Prevention, Mitigation and Preparedness.
- The Indian government strives to promote a national resolve to mitigate the damage and destruction caused by Natural and man-made disasters, through sustained and collective efforts of all government agencies, Non-Governmental Organizations and People.
- This is planned to be accomplished by adopting a Technology-Driven, Pro-Active, Multi-Hazard and Multi-Sectoral strategy for building a Safer, Disaster Resilient and Dynamic India.
5.Functions and responsibilities
- Lay down policies on disaster management.
- Approve the National Plan.
- Approve plans prepared by the Ministries or Departments of the Government of India by the National Plan.
- Lay down guidelines to be followed by the State Authorities in drawing up the State Plan.
- Lay down guidelines to be followed by the different Ministries or Departments of the Government of India to integrate the measures for the prevention of disaster or the mitigation of its effects in their development plans and projects.
- Coordinate the enforcement and implementation of the policy and plans for disaster management.
- Recommend provision of funds for mitigation.
- Provide such support to other countries affected by major disasters as may be determined by the Central Government.
- Take other measures for the prevention of disaster or the mitigation or preparedness and capacity building for dealing with threatening disaster situations or disasters as it may consider necessary.
- Lay down broad policies and guidelines for the functioning of the National Institute of Disaster Management.
6.Aapda Mitra
- NDMA started a scheme to train community volunteers in disaster response in selected flood-prone districts of India.
- It has implemented a Scheme of Aapda Mitra on a pilot basis to train 6000 community volunteers (200 Per district) in 30 flood-prone districts of 25 States/UTs in disaster response with a focus on floods so that they can respond to the community's immediate needs in the aftermath of a disaster.
- More than 5500 volunteers have been trained under the pilot scheme.
- Based on the success of the pilot scheme and requests from the States/ UTs, the Government of India has approved the UP-Scaling of Aapda Mitra Scheme, covering 350 districts prone to flood, landslide, cyclones and earthquakes to train 1, 00, 000 community volunteers in disaster response.
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"Sewa, Samarpan and Paropakar" are the identities of Aapda Mitras.
- The NDRF conducts community awareness programmes for the capacity building of the community in disaster management.
- In the year 2021, NDRF has trained 1380 community volunteers in disaster management.
- NDRF is also conducting School Safety Programme (SSP) and imparting basic training to school children as well as teachers to evacuate themselves during an earthquake.
- In 2021, NDRF has conducted 81 SSPs covering 18, 057 beneficiaries.
- To inform, educate and make the people aware, NDMA runs awareness generation campaigns through electronic and print media, including social media, on various disasters, from time to time.
- These campaigns include Do's and Don'ts, Audio-Visual films and messages containing preparedness before, during and after disaster events.
- When a disaster happens, volunteers from the affected community are normally the first to act.
- In any disaster, however quick the government machinery may be external help takes time to reach the affected people and this time lag is very crucial in saving lives and livelihood.
- The impact of volunteers in disaster response can be tremendous, as the extent of damage in terms of economic and human loss is greatly influenced by the initial response to a disaster.
- There lies a critical need to train these volunteers in certain basic skills in disaster management so that they can respond in an informed and prompt manner as well as assist the concerned agencies in rescue and relief operations.
- A team of 30 volunteers, comprising journalists, lawyers and IT workers, Managed several operations besides supplying food to over 30, 000 people following distress calls they received on the 1077 helpline number.
- They took control of the Rescue Operation Centre at Eranakulam of the district disaster management authority.
- They managed these operations with the help of hundreds of fishermen and also coordinated with several choppers through personal contacts in Air Force and NDRF.
- The 30-member team eventually split into multiple teams as the volume of distress calls went up. It was something never anticipated.
- The team was split to handle the huge number of distress calls.
- One group of nine attended calls and noted down details.
- Another team of nine engaged in data entry, while the others made calls and used social media to coordinate rescue efforts in several cases and reached out to personal contacts.
- Aluva, Chalakkudi and Paravur areas witnessed massive flooding, the 30-member team connected to several WhatApp groups with over 1200 volunteers in all, including celebrity radio jockeys, IT employees, lawyers to fishermen.
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For Prelims: NDMA, NDRF, Apada Mitra Scheme, SDMs, Volunteerism in Disaster Management
For Mains:
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