FOREIGN CONTRIBUTION REGULATION ACT (FCRA)
1. Context
The Union government is likely to amend the Foreign Contribution (Regulation) Act in the ongoing session of Parliament session. One of the key changes proposed is the appointment of a “designated authority” to take over, manage or dispose of assets created out of foreign funds by an NGO or association, which has had its FCRA registration suspended, cancelled, or not renewed.
2. Foreign Contribution Regulation Act
- The law sought to regulate foreign donations to individuals and associations so that they functioned "in a manner consistent with the values of a sovereign democratic republic".
- Foreign funding in India is regulated under the FCRA act. Individuals are permitted to accept foreign contributions without the permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
- It is implemented by the Ministry of Home Affairs. The FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India's affairs by pumping money into the country through independent organizations. These concerns were, in fact, even older- they had been expressed in Parliament as early as 1969.
3. Provisions of the Act
- The FCRA requires every person or NGO wishing to receive foreign donations to be registered under the act, to open a bank account for the receipt of foreign funds in the statute Bank of India, Delhi, and to utilize those funds only for which they have been received, and as stipulated in the act.
- They are also required to file annual returns, and they must not transfer the funds to another NGO.
- The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspapers and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, and organizations of a political nature.
4. Key Highlights of the 2020 Amendment
- It bars public servants from receiving foreign contributions. It prohibits the transfer of foreign contributions to any other person.
- Aadhar number is mandatory for all office bearers, directors, or key functionaries of a person receiving foreign contributions, as an identification document.
- The foreign contribution must be received only in an account designated by the bank as an FCRA account in such branches of the State Bank of India, New Delhi.
- No funds other than foreign contributions should be received or deposited in this account.
- It allowed the government to restrict the usage of unutilized foreign contributions. This may be done if, based on an inquiry the government believes that such a person has contravened provisions of the FCRA.
- While NGOs earlier could use up to 50 percent of funds for administrative use, the new amendment restricted this use to 20 percent.
5. Registration under FCRA
- NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation. FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programs.
- Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant and accordingly processes the application. The MHA is required to approve or reject the application within 90 days-failing which is expected to inform the NGO of the reasons for the same.
- Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.
6. Cancellation of Approval
The government reserves the right to cancel the FCRA registration of any NGO if it finds it to violate the Act. Registration can be cancelled for a range of reasons including, if "in the opinion of the Central Government, the public interest must cancel the certificate". Once the registration of an NGO is canceled, it is not eligible for re-registration for three years. All orders of the government can be challenged in the High court.
For Prlims& Mains
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For Prelims: FCRA, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, NGO, Ministry of Home Affairs (MHA). For Mains: 1. What is the Foreign contribution regulation act and discuss the new restrictions introduced by the Foreign Contribution (Regulation) Amendment Act, 2020. |
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Previous Year Questions
1.Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976. (Please refer GS-II Paper, 2015) |
Source: The Indian Express
FOREIGN DIRECT INVESTMENT (FDI)
1. Context
Net FDI into India contracted for the fifth consecutive month in January 2026, with outflows exceeding inflows by nearly $1.4 billion, a three-month high. The data shows this was because inflows into India fell nearly 7% while the amount repatriated out of the country nearly doubled.
2. FDI in India
- India's net foreign direct investment (FDI) inflows experienced a decline, decreasing by nearly 31% to $25.5 billion during the first 10 months of the 2023-24 fiscal year. The Finance Ministry attributed this decline to a broader trend of slowing investments in developing countries, while expressing optimism for a potential increase in investments in the current calendar year.
- Although global FDI flows overall saw a 3% rise to approximately $1.4 trillion in 2023, economic uncertainty and elevated interest rates impacted global investment, resulting in a 9% decrease in FDI flows to developing nations, as outlined in the Ministry's February assessment of economic performance.
- Reflecting the global trend of reduced FDI flows to developing countries, gross FDI inflows to India also experienced a slight decline, from $61.7 billion to $59.5 billion during the period from April 2023 to January 2024. In terms of net inflows, the corresponding figures were $25.5 billion versus $36.8 billion. The decrease in net inflows was primarily attributed to an increase in repatriation, while the decline in gross inflows was minimal.
- While a modest uptick in global FDI flows is anticipated for the current calendar year, attributed to a decrease in inflation and borrowing costs in major markets that could stabilize financing conditions for international investment, significant risks persist, according to the Ministry. These risks include geopolitical tensions, elevated debt levels in numerous countries, and concerns regarding further fragmentation of the global economy
3. Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) refers to the investment made by individuals, businesses, or governments from one country (the home country) into another country (the host country) with the objective of establishing a lasting interest or significant degree of influence in the foreign business or enterprise
Key Aspects:
- FDI involves the transfer of funds and resources from one country to another. This capital inflow can help stimulate economic growth in the host country by providing funds for investment in infrastructure, technology, and other areas.
- FDI often leads to the creation of jobs in the host country. When foreign companies establish subsidiaries or invest in existing businesses, they typically hire local employees, which can help reduce unemployment and improve living standards
- Foreign investors often bring advanced technologies, processes, and management practices to the host country. This technology transfer can enhance the host country's productivity, competitiveness, and industrial capabilities
- FDI can provide access to new markets for both the host country and the investing company. Foreign investors can tap into the host country's consumer base, while the host country gains access to the investing company's global distribution networks.
- FDI can contribute to overall economic development in the host country by promoting industrialization, improving infrastructure, and fostering innovation and entrepreneurship.
4.FDI Routes in India
India has several routes through which Foreign Direct Investment (FDI) can enter the country. These routes are regulated by the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT), and they define the conditions, limits, and sectors in which FDI is allowed
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Automatic Route: Under the automatic route, FDI is allowed without the need for prior approval from the RBI or the government. Investors only need to notify the RBI within a specified time frame after the investment is made. This route is available for most sectors, except those that are prohibited or require government approval.
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Government Route: In sectors or activities that are not covered under the automatic route, FDI requires government approval. Investors must apply for approval through the Foreign Investment Facilitation Portal (FIFP) or the Foreign Investment Promotion Board (FIPB), depending on the sector.
4.1. Examples
- Under the automatic route, FDI of up to 100% is allowed for manufacturing of automobiles and components.
- For the manufacturing of electric vehicles (EVs), 100% FDI is allowed under the automatic route.
- In single-brand retail trading, 100% FDI is allowed, with up to 49% allowed under the automatic route. Beyond 49%, government approval is required.
- Multi-brand retail trading (supermarkets and department stores) with FDI is permitted in some states, subject to certain conditions and restrictions. The FDI limit is typically capped at 51%.
- FDI in the insurance sector is allowed up to 74%, with up to 49% under the automatic route. Beyond 49%, government approval is needed
- In the telecom sector, 100% FDI is allowed, with up to 49% under the automatic route. Beyond 49%, government approval is required
- In the defense sector, FDI up to 74% is allowed under the automatic route, with government approval required for investments beyond 49%
- In most segments of the media and broadcasting sector, including print and digital media, 100% FDI is allowed, with up to 49% under the automatic route
4.2.Sectors where FDI Prohibited
- FDI is prohibited in the atomic energy sector, which includes activities related to the production of atomic energy and nuclear power generation.
- FDI is generally prohibited in the gambling and betting industry, which includes casinos and online betting platforms
- FDI is not allowed in the lottery business, except for state-run lotteries
- FDI is prohibited in chit funds, which are traditional Indian savings and credit schemes.
- Nidhi companies are non-banking finance companies (NBFCs) that facilitate mutual benefit funds. FDI is typically not permitted in these entities
- While FDI is allowed in single-brand retail trading, it is generally prohibited in multi-brand retail trading of agricultural products. Some states have allowed it under specific conditions, but this remains a highly regulated area.
- FDI is not allowed in the trading of transferable development rights (TDRs) pertaining to the construction of real estate
5. Foreign Portfolio Investors (FPIs)
Foreign Portfolio Investors (FPIs) refer to foreign individuals, institutions, or funds that invest in financial assets in a country, such as stocks, bonds, mutual funds, and other securities. FPIs are distinct from Foreign Direct Investors (FDIs), who typically make long-term investments in companies and assets to establish a lasting interest
Key Aspects:
- FPIs invest in a country's financial markets, primarily by buying and selling securities traded on stock exchanges and fixed-income instruments like bonds and government securities
- FPIs often seek to diversify their investment portfolios by spreading their investments across different asset classes, sectors, and countries. This diversification helps manage risk and enhance returns
- FPIs have the flexibility to buy and sell securities in the secondary market, providing liquidity to the market and contributing to price discovery
- FPIs typically have a shorter investment horizon compared to Foreign Direct Investors (FDIs). They may engage in short-term trading or hold securities for a few months to a few years.
- FPIs are subject to regulatory frameworks and restrictions in the countries where they invest. These regulations are designed to ensure that foreign investments do not pose undue risks to the local financial markets and economy.
6.Foreign Portfolio vs. Foreign Direct Investment
| FPI (Foreign Portfolio Investment) | FDI (Foreign Direct Investment) |
| FPI involves the purchase of financial assets such as stocks, bonds, mutual funds, and other securities in a foreign country. These investments are typically made with the intention of earning returns on capital and do not result in significant control or ownership of the underlying businesses | FDI entails making an investment in a foreign country with the primary objective of establishing a lasting interest and significant control or influence over a business enterprise or physical assets. FDI often involves the acquisition of a substantial ownership stake (typically at least 10%) in a company or the establishment of new business operations. |
| FPI is generally characterized by a shorter investment horizon. Investors in FPI may engage in trading and portfolio rebalancing activities, and their investments are often more liquid. The focus is on earning capital gains and income from investments. | FDI is characterized by a longer-term commitment. Investors in FDI intend to engage in the day-to-day management or decision-making of the business, contribute to its growth and development, and generate profits over an extended period. |
| FPI investors typically have little to no influence or control over the companies in which they invest. They are passive investors who participate in the financial markets and rely on market dynamics to drive returns. | FDI investors actively participate in the management and decision-making of the businesses they invest in. They often seek to exercise control over company operations and strategy, which may include appointing board members or key executives. |
| FPI investments are often made through financial instruments like stocks, bonds, and securities. Investors may use instruments like mutual funds or exchange-traded funds (ETFs) to gain exposure to foreign markets | FDI investments involve a direct equity stake in a company, either through share acquisition or the establishment of a subsidiary or branch in the host country. FDI can also involve the purchase of real assets such as land, factories, or infrastructure |
| FPI can provide short-term capital inflows, but it may be more susceptible to market volatility and sudden capital outflows. It may not have as direct an impact on job creation and economic development as FDI. | FDI often contributes to long-term economic development by creating jobs, stimulating infrastructure development, transferring technology and expertise, and enhancing the competitiveness of local industries |
| FPI investments are subject to regulations that vary by country and may include foreign ownership limits, reporting requirements, and tax considerations. | FDI is subject to regulations that can be more stringent and may involve government approval, sector-specific conditions, and investment protection measures |
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For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1. Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. (UPSC CSE 2011)
Which one of the following statements best represents an important difference between the two?
A.FII helps bring better management skills and technology, while FDI only brings in capital
B.FII helps in increasing capital availability in general, while FDI only targets specific sectors C.FDI flows only into the secondary markets, while FII targets primary market
D.FII is considered to the more stable than FDI
Answer (B)
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Source: indianexpress
HEAT WAVES
1. Context
This year, sweltering and high temperatures in Jammu & Kashmir and Punjab, unusual heatwaves in Himachal Pradesh, and dry and hot weather across Gujarat and Maharashtra marked the beginning of March — a month that climatologically sees a slow transition from winter to summer.
2. About Heat Wave
- A heatwave is a period of abnormally high temperatures, a common phenomenon in India during the months of May-June and in some rare cases even extends till July.
- Indian Meteorological Department (IMD) classifies heat waves according to regions and temperature ranges. As per IMD, the number of heatwave days in India has increased from 413 over 1981-1990 to 600 over 2011-2020.
- This sharp rise in the number of heatwave days has resulted due to the increasing impact of climate change.
- The last three years have been La Niña years, which has served as a precursor to 2023 likely being an El Niño year. (The El Niño is a complementary phenomenon in which warmer water spreads westeast across the equatorial Pacific Ocean.)
- As we eagerly await the likely birth of an El Niño this year, we have already had a heat wave occur over northwest India.
- Heat waves tend to be confined to north and northwest India in El Niño years.
3. Understanding the Effects of Heat on the Body
Heat Exhaustion Occurs when excessive sweating leads to the draining of the body's resources, but it is not life-threatening. Recovery is possible by rehydrating and seeking cooler areas.
Heat stroke Results from an inability to regulate core body temperature, leading to severe symptoms and potential organ damage. Promptly reducing core temperature is crucial in these cases.
4. Symptoms and Medical care
Signs of heat stroke Extremely high body temperature without sweating, drowsiness, vomiting, reduced urination and impaired breathing.
Vulnerable populations Older adults, young children and individuals with comorbidities are more susceptible to heat-related impacts. However, heat stroke can affect individuals of any age.
5. Preventive Measure to Avoid Heat Stroke
Minimize exposure Stay indoors or seek shade during peak sunlight hours, especially between noon and 3 pm. Avoid strenuous activities during this time.
Stay hydrated Drink water regularly, even if not feeling thirsty. Consume hydrating fluids such as lassi, lemon water, buttermilk or ORS to maintain electrolyte balance.
Clothing and accessories Wear lightweight, light-coloured, loose-fitting cotton clothes. Use goggles, umbrellas and appropriate footwear for protection.
Home cooling Use curtains or shades to keep homes cool. Utilize damp clothes and cod baths to lower body temperature.
6. Role of Humidity and Night-time Temperatures
High humidity Increased perceived temperature and reduces the effectiveness of sweat evaporation, making it harder to cool down.
High night-time temperatures Light the body's recovery time, hindering the restoration of resources. Low night temperatures are essential for adequate recuperation.
7. Linking Heatwaves to Climate Change and Global Implications
Rising global temperatures Climate Change contributes to increased heatwave frequency and intensity, impacting human health.
Health Risks and Socioeconomic Impact Heatwaves can cause additional deaths, public health emergencies, reduced labour productivity and disruptions to essential services.
8. Criteria for Declaring Heat Waves in India
- In plains maximum temperature of at least 40 °C or more
- In Hilly regions maximum temperature of at least 30 °C or more
- Severe heat wave departure from normal temperature exceeds 6.40 °C
9. Impact of heat waves on Health
Health impacts of heat Heat-related illnesses range from heat cramps to heatstroke and hyperthermia. Heat can also worsen existing conditions and lead to premature death.
Indirect health effects Heat affects human behaviour, disease transmission, health services, air quality and critical infrastructure.
10. Conclusion
- Addressing heatwave deaths in India requires a multi-faceted approach involving government intervention, public awareness and preventive measures.
- By understanding the effects of heat on the body, recognizing critical symptoms and implementing preventive strategies, the risk of heat-related illnesses and fatalities can be reduced.
- Additionally, acknowledging the role of climate change and preparing for future heat waves is essential for safeguarding public health.
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For Prelims: Heatwave, India Meteorological Department, National Disaster Management Authority, the Health Ministry, ORS, Humidity, high temperatures
For Mains:
1. Climate change is considered a contributing factor to the increased frequency and intensity of heat waves. Discuss the measures that can be taken at national and international levels to address climate change and minimize its impact on public health. (250 Words)
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Previous Year Questions
1. Arrange the following India Meteorological Headquarters in Chronological order of their establishment and select your correct answer from the codes given below: (UPPSC Civil Service 2018)
A. New Delhi
B. Kolkata
C. Shimla
D. Pune
1. C D A B 2. B A D C 3. D B C A 4. B C D A
Answer: 4
2. Consider the following statements: (MPSC Forest Services 2019)
(a) The Disaster Management Act was passed by the Parliament in 2005.
(b) The Union Home Minister Acts as a Chairperson of the National Disaster Management Authority (NDMA).
(c) The NDMA may have not more than nine members including Vice-Chairman.
(d) The tenure of the members of NDMA shall be five years.
Which of the statements given above are correct?
1. (a), (b) and (c) 2. (a), (c) and (d) 3. (b), (c) and (d) 4. All above
Answer: 2
3. National Disaster Management Authority is headed by (CDS 2021)
A. the Prime Minister. B. the Home Minister C. the President. D. the Health Minister.
Answer: A
4. 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
5. Consider the following statement: (UPSC 2018)
1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of the Director General of Health Services in the Union Ministry of Health and Family Welfare.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: A
6. What is the full form of ORS? (NHM UP CHO 2021)
A. Oral Recovered Solution
B. Oral Rehydration Salts
C. Oral Regenerate Salts
D. Oral Regenerate Solution
Answer: B
7. Consider the following statements with regard to atmospheric humidity: (UPSC ESE 2018)
1. Absolute humidity is the amount of water vapour per unit volume.
2. Hygrometer is used to measure relative humidity.
3. Dew point is the temperature at which the relative humidity is 75%.
Which of the above statements are correct?
A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3
Answer: A
8. Relative humidity is (ISRO Scientist Civil 2020)
A. Something concerned with air conditioning
B. The ratio of moisture present in air to the capability of air to hold maximum moisture
C. The ratio of actual humidity to absolute humidity
D. Representative of amount of moisture held in air
Answer: B
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Source: The Indian Express & WHO
TOTAL FERTILITY RATE (TFR)
1. Context
In order to cope with a declining total fertility rate (TFR), the Andhra Pradesh government led by Chief Minister N Chandrababu Naidu has incentivised births in the state through a population policy introduced earlier this month.
2. About the Total Fertility Rate (TFR)
The Total Fertility Rate (TFR) is a key demographic indicator that helps us understand the average number of children a woman in a specific population will have during her lifetime, assuming current birth patterns persist. It's different from the crude birth rate, which simply measures the number of births per 1,000 people in a population in a given year.
What it measures
- The average number of children a woman will have throughout her reproductive lifespan.
- It considers age-specific fertility rates, which means it takes into account the different birth rates at different ages within the population.
- Provides a longer-term perspective on population dynamics compared to the crude birth rate.
Significance
- Helps assess population growth trends and predict future population size.
- Informs policy decisions related to education, healthcare, social security, and economic development.
- Understanding TFR is crucial for analyzing the potential demographic dividend, which refers to the economic and social benefits that can arise from a large working-age population due to declining fertility rates.
Calculation
- Summing the age-specific fertility rates (ASFRs) for all fertile age groups (typically 15-49 years) and multiplying by five.
- ASFRs represent the average number of births per 1,000 women in a specific age group.
Key TFR levels
- Replacement fertility rate: Around 2.1 children per woman, ensures population stability without growth or decline due to births and deaths (excluding migration).
- TFR below replacement: Indicates a declining population, with potential implications for workforce size and economic growth.
- TFR above replacement: Leads to population growth, requiring investments in infrastructure and resources to support the growing population.
3. What does the Total Fertility Rate (TFR) of 2.0 mean?
A Total Fertility Rate (TFR) of 2.0 means that, on average, each woman in the population is expected to give birth to two children over her reproductive lifetime. This value represents the replacement level of fertility, where each generation replaces itself in the population. When the TFR is around 2.0, it indicates that the population is stable, with births balancing deaths over time.
A Total Fertility Rate (TFR) of 2.0 indicates several key things
- Average Children per Woman: In that specific population, on average, a woman will have two children during her lifetime, assuming current birth patterns remain unchanged. This means that each generation of women is replacing itself, without population growth or decline due solely to births and deaths (excluding migration).
- Replacement Fertility Rate: A TFR of 2.0 is often referred to as the replacement fertility rate. This is because it signifies the level of fertility needed to maintain a stable population size over time, considering only births and deaths. However, it's important to note that the exact replacement level can vary slightly depending on mortality rates, particularly child mortality.
- Demographic Transition: A TFR of 2.0 suggests that the population is likely in the later stages of the demographic transition. This transition involves a shift from high birth and death rates to low birth and death rates. In this stage, populations typically experience a decline in fertility, followed by a decline in mortality, leading to a stabilization of population size.
- Global Context: While 2.0 is the replacement fertility rate, the global average TFR is currently around 2.3, indicating slight population growth. However, many developed countries have TFRs below replacement level, which can lead to an ageing population and potential challenges for social security systems and workforce size.
- Policy Implications: Understanding the TFR is crucial for policymakers in various areas like education, healthcare, social security, and economic development. A TFR below replacement may necessitate policies encouraging childbirth or attracting immigration to address potential workforce shortages. Conversely, a high TFR might require investments in infrastructure and resources to support a growing population.
4. What is the Replacement Fertility Rate?
The Replacement Fertility Rate (RFR) is the level of fertility required to maintain a stable population size in a given area, considering only births and deaths (excluding migration). This means that each generation of women has just enough daughters to replace themselves and their mothers in the population.
Key Points about RFR
- Typically around 2.1 children per woman This number varies slightly depending on a country's mortality rates, especially child mortality rates. Higher child mortality necessitates slightly higher fertility to ensure replacement.
- When the TFR matches the RFR, the population neither grows nor declines due to births and deaths.
- Reaching RFR suggests a population in the later stages of the demographic transition, characterized by declining birth and death rates.
- Though the global average TFR is 2.3 (slightly above RFR), many developed countries have TFRs below RFR, leading to ageing populations.
Significance of RFR
- Understanding RFR helps policymakers formulate effective policies in areas like education, healthcare, social security, and economic development.
- TFR below RFR may require policies to encourage childbirth or attract immigration to address potential workforce shortages and support ageing populations. Conversely, a high TFR might necessitate investments in infrastructure and resources to sustain a growing population.
- Analyzing TFR about RFR offers insights into potential population growth or decline, aiding in planning and resource allocation.
5. How is the Total Fertility Rate calculated?
The Total Fertility Rate (TFR) is calculated by considering the age-specific fertility rates (ASFRs) of a population.
- Age-specific fertility Rates (ASFRs) represent the average number of births per 1,000 women within a specific age group. Typically, ASFRs are calculated for five-year age groups ranging from 15-49 years, covering the typical childbearing years for women. Data for calculating ASFRs usually comes from population censuses or demographic surveys.
- Once you have the ASFRs for each age group, you need to sum them all up. This gives you the total number of births expected per 1,000 women across all fertile age groups.
- Since age groups may have different sizes, simply summing ASFRs wouldn't be entirely accurate. To account for this, the sum is multiplied by the average number of women in each age group. This ensures the TFR reflects the fertility rates across all age groups proportionally.
- Often, instead of using the actual number of women in each age group, a standard factor of "5" is used for convenience. This assumes that each age group has roughly the same number of women, which is a reasonable approximation for many populations.
Therefore, the TFR formula becomes: TFR = (Sum of ASFRs across all age groups) * 5
Example:
Imagine a hypothetical population with the following ASFRs:
- 15-19 years: 30 births per 1,000 women
- 20-24 years: 80 births per 1,000 women
- 25-29 years: 120 births per 1,000 women
- 30-34 years: 90 births per 1,000 women
- 35-39 years: 50 births per 1,000 women
- 40-44 years: 20 births per 1,000 women
- 45-49 years: 10 births per 1,000 women
Using the formula:
- TFR = (30 + 80 + 120 + 90 + 50 + 20 + 10) * 5
- TFR = 400 * 5
- TFR = 2000 births per 1,000 women
Therefore, in this example, the TFR is 2.0, indicating that on average, a woman in this population would have 2 children during her lifetime based on the current age-specific fertility rates.
6. The difference between birth rate and Total Fertility Rate (TFR)
While both birth rate and Total Fertility Rate (TFR) measure fertility within a population, they have key differences that offer distinct insights:
| Features | Birth Rate | Total Fertility Rate (TFR) |
| Definition | Number of births per 1,000 people in a year | Average number of children per woman throughout her life |
| Focus | Current fertility level | Long-term fertility pattern |
| Data | Requires population size and number of births | Requires age-specific fertility rates |
| Calculation | Simple division | Summing and adjusting age-specific fertility rates |
| Advantages | Easy to understand, tracks short-term trends | Considers age structure, reflects future potential, informs policy |
| Limitations | Ignores age structure, limited future insight, misleading in fluctuating populations |
Requires complex data, less intuitive, may not perfectly predict future |
7. About demographic dividend
A demographic dividend refers to the potential economic and social benefits that can arise when a large share of the population is in the working-age (typically 15-64 years) compared to the dependent populations (children and elderly). This shift in population structure is often caused by a decline in fertility rates without a corresponding decline in mortality rates, leading to a "bulge" in the working-age population.
Key Features
- A larger working-age population translates to a larger pool of available labour, potentially boosting economic growth and productivity.
- The ratio of dependents (children and elderly) to the working-age population decreases, leading to increased savings and investment as fewer resources are needed to support dependents.
- The potential for increased investments in education and healthcare due to a smaller dependent population, leading to a more skilled and healthy workforce.
Conditions for a Dividend
- A significant and sustained decline in fertility rates is crucial for the demographic dividend to occur.
- The benefits of a demographic dividend can only be realized if the working-age population is adequately educated, skilled, and healthy.
- Expanding job opportunities is essential to absorb the growing workforce and prevent unemployment.
Challenges and Considerations
- The demographic dividend may not be evenly distributed across regions or social groups, potentially leading to inequalities.
- Governments and businesses need to adapt policies and infrastructure to accommodate the changing population structure.
- Ensuring social security and healthcare for the ageing population is crucial to sustain the benefits of the dividend.
Examples
- Several East Asian countries, like China and South Korea, experienced significant economic growth due to their demographic dividends in the latter half of the 20th century.
- India is currently experiencing a demographic transition with a declining fertility rate, creating the potential for a future dividend. However, realizing this potential requires investments in education, healthcare, and job creation.
8. The Way Forward
Understanding the TFR and its implications is crucial for India's future development. By analyzing population dynamics and formulating data-driven policies, the country can harness the potential of its demographic transition and achieve the Viksit Bharat goals sustainably and inclusively.
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For Prelims: Viksit Bharat, Population control goal, Total Fertility Rate, Replacement Fertility Rate
For Mains:
1. Critically analyze the significance of Total Fertility Rate (TFR) in understanding population dynamics and formulating development policies in India. Discuss the potential challenges and opportunities associated with India's projected demographic transition. (250 Words)
2. What are the potential security implications of India's changing population structure? How can these be addressed through proactive policy measures? (250 Words)
3. Imagine you are part of the committee formed by the Finance Minister to study India's population growth. What key recommendations would you propose, considering both demographic trends and the aspirations of a Vikasit Bharat? (250 Words)
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Previous Year Questions
1. The total fertility rate is: (HPPSC GS 2018) (MPSC 2015)
A. The birth of women divided by the total female population
B. The number of births divided by the total population
C. The number of children a woman will likely bear in her lifetime
D. The births to women of a given age divided by the total number of women at that age
Answer: C
Mains
1. "Empowering women is the key to control the population growth.’’ Discuss. (UPSC 2019)
2. Critically examine the effect of globalization on the aged population in India. (UPSC 2013)
3. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (UPSC 2021)
4. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC 2020)
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Source: The Indian Express
JAL JEEVAN MISSION
1. Context
Amid concerns over the inflated cost of works undertaken in the first phase of Jal Jeevan Mission (JJM), the Centre is set to undertake a rationalisation exercise by scrutinising projects costing over Rs 100 crore before funds are released to states
2. Jal Jeevan Mission
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The Jal Jeevan Mission, launched by Prime Minister Narendra Modi on August 15, 2019, was envisioned to ensure tap water access to approximately 16 crore rural households, with the goal of achieving universal coverage by 2024.
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However, in just over five years, only 75% of the target has been met. To cover the remaining 4 crore households, the government now plans to extend the mission’s deadline to December 31, 2028.
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The Ministry of Jal Shakti had sought Rs 2.79 lakh crore from the Centre to finish the project. But according to sources, the Expenditure Finance Committee (EFC)—headed by the Expenditure Secretary—reviewed the proposal on March 13 and recommended a revised funding of only Rs 1.51 lakh crore. The committee also slashed the total project cost by Rs 41,000 crore, approving an outlay of Rs 8.69 lakh crore instead of the Rs 9.10 lakh crore originally proposed.
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Since the Jal Jeevan Mission is co-financed equally by the Centre and the states, this cut in Central funding could shift a greater financial burden onto state governments
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Government Schemes related to Water
Among the various initiatives under the Ministry of Jal Shakti, the Namami Gange Programme and river interlinking projects hold significant importance. Hence, it is essential for aspirants to not only be familiar with these schemes but also grasp the concept of river interlinking itself. In fact, a previous Prelims question was based on the Godavari-Krishna river interlinking, highlighting the relevance of such topics. As a result, gaining a clear understanding of the Ken-Betwa river linking project is also crucial for exam preparation
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3. Namami Ganga Programme
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The Namami Gange Programme is a comprehensive river conservation initiative launched as a flagship mission by the Union Government in June 2014. It aims to achieve two primary goals: the reduction of pollution and the revival and preservation of the Ganga River, recognized as India’s national river.
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The programme is built on several core components, which include:
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Development of sewage treatment infrastructure
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Revitalization of riverfront areas
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Cleaning of the river surface to remove floating waste
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Promotion and protection of biodiversity
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Expansion of afforestation along the river basin
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Enhancing public engagement and awareness
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Monitoring of industrial waste discharge
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Transformation of villages along the Ganga into model Ganga Grams
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4. Interlinking of rivers (Ken-betwa river)
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River interlinking refers to a large-scale water resource management approach where water is deliberately redirected from regions with excess availability to those facing water scarcity.
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This method typically involves connecting river basins using infrastructure such as canals, reservoirs, and pipelines. These inter-basin water transfer (IBWT) projects are designed to improve irrigation capacity, support flood management, and boost water availability in areas prone to drought.
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On December 25, 2024, Prime Minister Narendra Modi inaugurated the Ken-Betwa Link Project (KBLP) in Khajuraho, Madhya Pradesh, marking the 100th birth anniversary of former PM Atal Bihari Vajpayee.
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The project’s primary goal is to irrigate the drought-prone Bundelkhand region by channeling excess water from the Ken River in Madhya Pradesh to the Betwa River in Uttar Pradesh. Both rivers eventually feed into the Yamuna River, and are classified as its right-bank tributaries.
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The Union Cabinet approved a budget of Rs 44,605 crore for the KBLP. It will be implemented in two phases:
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Phase I includes the construction of the Daudhan Dam, a 221-km-long Ken-Betwa Link Canal, and associated infrastructure.
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Phase II will involve the development of the Lower Orr Dam, the Bina Complex Project, and the Kotha Barrage.
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A section of the proposed infrastructure will pass through the Panna Tiger Reserve, raising environmental concerns due to the potential submergence of a part of this ecologically sensitive tiger habitat.
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Significantly, the KBLP is the first river interlinking project to be implemented under the National Perspective Plan, which was introduced in 1980. This larger plan includes 16 river links in the Peninsular region, and another 14 links proposed under the Himalayan component
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Yamuna river
Yamuna is a tributary of River Ganga. It has four main tributaries in the Himalayan region: Rishi Ganga, Hanuman Ganga, Tons, and Giri. In the plains, the main tributaries are Hindon, Chambal, Sind, Betwa and Ken. Tons is the largest tributary of Yamuna. Other small tributaries of the Yamuna River include the Uttangan, Sengar and the Rind.
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5. Constitution on Water
Right to Water as a Fundamental Right in India
The right to access clean and safe drinking water in India is considered part of the fundamental rights framework, particularly under Article 21 of the Constitution, which guarantees the Right to Life. This interpretation is derived from connected rights such as the right to food, right to health, and the right to a clean environment.
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In the landmark Narmada Bachao Andolan v. Union of India (2000) case, the Supreme Court emphasized that access to water is a basic human necessity, integral to the right to life. It also stated that the right to a healthy environment and sustainable development are essential components of human rights under Article 21.
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Similarly, in the State of Karnataka v. State of Andhra Pradesh (2000) case, the Court reiterated that the right to water is part and parcel of the right to life, thus making it a fundamental right
Directive Principles Related to Water and Environment
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Article 39(b) under the Directive Principles of State Policy directs the State to ensure that material resources, including water, are equitably distributed to promote the common good.
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Article 48A calls upon the State to actively work towards the protection and enhancement of the environment, including forests and wildlife, which indirectly contributes to water conservation
Environmental Duties of Citizens
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Article 51A(g), which falls under Fundamental Duties, obligates every citizen to safeguard and improve the natural environment, specifically mentioning rivers, lakes, forests, and wildlife. It also encourages compassion for living beings
Legal Provisions for Water Dispute Resolution
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Article 262 empowers Parliament to enact laws for resolving inter-State river water disputes. According to:
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Clause (1): Parliament can legislate for the adjudication of conflicts over the use, distribution, or control of inter-State river waters.
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Clause (2): Parliament may restrict judicial intervention, including that of the Supreme Court, in such matters.
This article served as the constitutional basis for the enactment of the Inter-State River Water Disputes Act, 1956, aimed at resolving such disputes
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Constitutional Powers over Water – State and Union Roles
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Entry 17 of the State List (List II), Seventh Schedule grants states the authority to legislate on water-related issues like irrigation, canals, drainage, and water supply, subject to the Union’s jurisdiction under Entry 56 of List I.
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Entry 56 of the Union List (List I), Seventh Schedule allows the central government to regulate and develop inter-State rivers and river valleys when declared to be in the public interest by Parliament
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For Prelims: Jal jeevan Mission, Directive Principles of State Policy
For Mains: GS II - Government Schemes on Water
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Source: Indianexpress
ANTIMICROBIAL RESISTANCE
1. Context
A first-of-its-kind study mapping antimicrobial resistance (AMR) in urban wastewater across four Indian metros has found that bacteria, despite differing by city, are evolving similar ways to evade antibiotics—raising concerns for public health surveillance.
2. What is Anti Microbial Resistance?
Antimicrobial Resistance (AMR) occurs when bacteria, viruses, fungi, and parasites change over time and no longer respond to medicine making infections harder to treat and increasing the risk of disease spread severe illness, and death.
3. Emergence and spread of AMR
- AMR occurs naturally over time, usually through genetic changes.
- Antimicrobial-resistant organisms are found in people, animals, food, plants, and the environment (in water, soil, and air).
- They can spread from person to person or between people and animals, including from food of animal origin.
- The main drivers of antimicrobial resistance include the misuse and overuse of antimicrobials, lack of access to clean water, sanitation, and hygiene (WASH) for both humans and animals, and poor infection and disease prevention and control in healthcare facilities and farms. Poor access to quality, affordable medicines, vaccines, and diagnostics, lack of awareness and knowledge, and lack of enforcement of legislation.
4. Factors causing AMR in India
Inappropriate consumption of board-spectrum (last resort) antibiotics is high because of changing prescription practices in the healthcare system due to the non-availability of a narrow spectrum of antibiotics.
Inappropriate antibiotics use among the general public like self-medication to avoid the financial burden.
A large proportion of sewage is disposed of untreated into receiving water bodies, leading to gross contamination of rivers with antibiotic residues, and antibiotic-resistant organisms.
5. Reasons for the recent increase in the use of antibiotics in India
- The high disease burden
- The rising income
- The easy and cheap availability of these medicines to the public.
- The uncontrolled sales of antibiotics
- Poor Public health infrastructure
- Lack of awareness regarding the misuse of antibiotics.
6. Government Initiatives that help to curb Antimicrobial Resistance In India
The Union Health Minister of India in the International Conference on Anti-Microbial Resistance stated that the first step in addressing the problem of AMR is to avoid the need for antibiotics at all in the first place. Improved water, vaccination, and sanitation may control inappropriate antibiotic use indirectly. The main government policies that help in this process are:
- Through the Swacch Bharat Program, the government has taken active steps to improve hygiene and sanitation and reduce the environmental spread of pathogens.
- Vaccination is an equally important public health measure, and through Mission Indradhaniush, India has set itself an ambitious goal of increasing routine immunization coverage to 90% within just a few years.
6.1 Red Line Campaign
The Union health ministry's Anti-Microbial Resistance awareness campaign urges people not to use medicines marked with a red vertical line, including antibiotics, without a doctor's prescription.
These medicines are called the 'Medicines with the Red Line.
To check the irrational use of antibiotics, the 'red line' will help the users to differentiate them from the drugs.
This campaign is aimed at discouraging unnecessary prescription and the counter sale of antibiotics causing drug resistance for several critical diseases including TB, malaria, urinary tract infection, and even HIV.
7. WHO's Global plan on Anti-Microbial Resistance?
- To improve awareness and understanding of antimicrobial resistance through effective communication, education, and training.
- To Strengthen the knowledge and evidence base through surveillance and research.
- To reduce the incidence of infection through effective sanitation, hygiene, and infection prevention measures.
- To Optimize the use of antimicrobial medicines in human and animal health.
- To develop the economic case for sustainable investment that takes account of the needs of all countries and to increase investment in new medicines, diagnostic tools, vaccines, and other interventions.
8. Global efforts
8.1 Global Action Plan on Antimicrobial Resistance (GAP): Globally, countries committed to the framework set out in the Global Action Plan1 (GAP) 2015 on AMR during the 2015 World Health Assembly and committed to the development and implementation of multisectoral national action plans.
8.2 Tripartite Joint Secretariat on Antimicrobial Resistance: Tripartite joint secretariat (FAO, OIE, and WHO) has been established and is hosted by WHO to drive multi-stakeholder engagement in AMR.
8.3 World Antimicrobial Awareness Week (WAAW): WAAW was previously called World Antibiotic Awareness Week. From 2020, it will be called world Anti-Microbial Awareness Week. It is a global campaign that aims to raise awareness of antimicrobial resistance worldwide.
8.4 Global Antimicrobial Resistance and use surveillance system (GLASS): WHO launched it in 2015 to continue filling knowledge gaps and to inform strategies at all levels. GLASS has been conceived to progressively incorporate data from surveillance of AMR in humans, surveillance of the use of Antimicrobial medicines, and AMR in the food chain and the environment.
For Prelims & Mains
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For Prelims: Food and Agriculture Organization (FAO), UN Environment Programme, the World Health Organization (WHO), World Organisation for Animal Health, Mission Indradhaniush, Red Line Campaign.
For Mains: 1.Antimicrobial resistance (AMR) is considered one of the most significant challenges the world faces today. Discuss.
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Previous Year Questions
1.Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? ( UPSC CSE 2019)
Select the correct answer using the code given below. (a) 1 and 2 Answer: (b) |
Source: Down to Earth
LIQUEFIED PETROLEUM GAS (LPG)
1. Context
With the massive cut in commercial supplies of liquefied petroleum gas (LPG) hitting restaurants and hotels, particularly the small-scale establishments among them, the Centre on Saturday approved an additional 20% allocation of commercial LPG to states and union territories specifically for restaurants, dhabas, hotels
2. Global Oil Prices
- The price of LPG has been rising since November 2020; a 14.2 kg cylinder in Delhi now costs Rs 949 -Rs 355 or nearly 60 per cent costlier
- A steady increase in crude prices due to the recovery in demand following the easing of Covid restrictions, slow restoration of production by oil exporters, and the Russia-Ukraine war have contributed to rising prices
- The price of India’s crude oil basket has risen from $41 per barrel in November 2020 to $115.4 as on March 23, 2022
- The government had stopped subsidies on LPG cylinders for most consumers in May 2020, adding to the price burden on consumers
- Due to high inland freight costs, the government now provides subsidies only through its direct benefit transfer scheme to customers in remote areas
3. PNG and CNG Prices
Rising international gas prices have also impacted the price of piped natural gas (PNG) and compressed natural gas (CNG) supplied by city gas distribution companies, as they source imported natural gas in addition to domestically produced natural gas to meet demand
Prices of PNG and CNG are expected to rise further post the next price revision of domestically produced natural gas, which is set to come into effect for a six-month period starting April 1 2023
4. LPG dependence
- LPG is the primary cooking fuel in more than 70 per cent of Indian households, and 85 per cent of households have LPG connections, according to an independent study released by the Council on Energy, Environment and Water (CEEW)
- However, 54 per cent of households continue to use traditional solid fuels such as firewood, dung cakes, agriculture residue, charcoal, and kerosene, either exclusively or with LPG increasing the exposure to indoor air pollution
- The CEEW findings are from the India Residential Energy Survey 2020, conducted in collaboration with the Initiative for Sustainable Energy Policy in FY 19-20 in nearly 15,000 urban and rural households across 152 districts in 21 most populous states
5. Future Inflation
Inflation expectations in India have been sticky as households take time in believing that a high inflation phase is ebbing. Quantitative inflation expectations in India are formed based on households’ experiences of food and fuel inflation, according to a January 2022 RBI working paper titled Taking Cognisance of Households’ Inflation Expectations in India
Households’ median inflation perceptions for the current period moderated sequentially by 70 basis points to 9.7 per cent in January in the latest round of survey conducted by the RBI. But the current period perception is still higher than the perceptions recorded in the same period a year ago
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For Prelims: Exports, Imports, Inflation, Minimum Support Price
For Mains: 1.Examine the impact of international trade agreements on India's rice exports. Discuss the role of organizations such as the World Trade Organization (WTO) and regional trade agreements in shaping India's rice export policies. Analyze how these agreements have influenced the growth, diversification, and sustainability of India's rice export market.
2.Evaluate the significance of Basmati rice in India's agricultural exports. Elaborate on the economic, cultural, and geopolitical factors that have contributed to the prominence of Basmati rice in India's export portfolio. Discuss the challenges and opportunities associated with the production and international trade of this premium rice variety
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Previous Year Questions
1.Consider the following statements: (UPSC CSE 2020)
Which of the statements given above is/are correct? (a) 1 only Answer: (d) 2.With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? (UPSC CSE 2021)
Select the correct answer using the code given below: (a) 1, 2 and 4 only Answer: (a) 3. Consider the following statements: (2020)
Which of the statements given above is/are correct? (a) 1 and 2 only Answer: (a) |
Source: indianexpress
MATERNITY LEAVE IN INDIA
1. Context
Last week, the Supreme Court ruled that adoptive mothers could avail themselves of 12 weeks of paid maternity leave regardless of the age of their children at the time of adoption. Striking down Section 60(4) of the Social Security Code, 2020 (previously Section 5(4) of the Maternity Benefit Act, 1961), which limited this benefit only to mothers who adopted children under the age of three months, the Court said that an adoptive mother had the same rights and obligations towards the child as a biological mother.
2. Maternity leave in India
- The provision of statutory maternity benefits for working women in India traces its origins to the colonial period. The Bombay Maternity Benefit Act of 1929 was among the earliest laws, extending such benefits to women employed in factories.
- Over time, similar legislation was introduced in other regions prior to Independence. Eventually, in 1961, Parliament enacted the Maternity Benefit Act, which granted 12 weeks of paid maternity leave to working women nationwide.
- A significant reform came in 2017 with the Maternity Benefit (Amendment) Act. This amendment increased paid maternity leave for biological mothers to 26 weeks and, for the first time, included provisions for adoptive and surrogate mothers.
- Under Section 5(4), women who legally adopt a child below the age of three months, as well as commissioning mothers, are eligible for 12 weeks of maternity leave starting from the date the child is handed over to them
3. Drawbacks of the above law
- While the Maternity Benefit Act, 1961 and its 2017 amendment marked a progressive step for working women, the framework has several structural and practical limitations that affect its effectiveness.
- One of the most significant drawbacks is that the law places the entire financial burden of paid maternity leave on employers rather than the state.
- This increases the cost of hiring women, especially in the private sector, and can unintentionally discourage employers from recruiting or promoting women of childbearing age. In this sense, a well-intentioned welfare measure may contribute to gender discrimination in hiring practices.
- Another major limitation is its restricted coverage. The law applies mainly to women working in the formal sector, which constitutes only a small fraction of India’s workforce.
- A vast majority of women employed in the informal sector—such as domestic workers, agricultural labourers, and gig workers—remain outside its scope, thereby excluding those who are often most vulnerable.
- The 2017 amendment to the Maternity Benefit (Amendment) Act, 2017 extended leave to 26 weeks, which is beneficial for child and maternal health, but it has also raised concerns among employers regarding productivity and workforce continuity.
- Smaller firms, in particular, may struggle to manage prolonged employee absence without adequate support or incentives from the government.
- The provision for adoptive and surrogate mothers, while a positive inclusion, is limited in scope.
- It applies only when the adopted child is below three months of age, excluding many adoptive parents who take in older infants or children. This creates an inconsistency in how caregiving responsibilities are recognized.
- Additionally, the law does not adequately address paternity leave or shared parental responsibilities. By focusing almost entirely on mothers, it reinforces traditional gender roles and places the burden of childcare primarily on women, which can further affect their long-term career progression.
- There are also implementation challenges. Awareness about entitlements remains low among workers, and compliance is uneven, particularly in smaller establishments. Monitoring mechanisms are not always robust, leading to gaps between legal provisions and actual practice
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Supreme Court on Motherhood
The Court emphasized that motherhood should not be confined to a purely biological perspective. It recognized adoption as an integral aspect of reproductive autonomy. Highlighting the importance of leave, the Court observed that this period is essential for building a strong emotional connection between the mother and the child. It further pointed out that children raised in institutional settings often exhibit higher levels of stress hormones compared to those brought up in family environments, underscoring the need for adequate paid leave even in cases involving older adopted children
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4. Maternity Benefit Act 1961
- The Maternity Benefit Act was originally passed by Parliament on December 12, 1961, to regulate the employment of women in “certain establishments” for the period before and after childbirth and “to provide for maternity benefit and certain other benefits.”
- Originally it applied to every establishment “being a factory, mine or plantation” and later in 1973, it was extended to “any such establishment belonging to Government” and “every establishment where persons are employed for the exhibition of equestrian, acrobatic and other performances.”
- It repealed the Mines Maternity Benefit Act, 1941 and Maternity Benefit Act, 1929
- Section 4 of the 1961 Act prohibited the employment of or work by women during a certain period and under sub-section (1) stated, “No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery or her miscarriage.”
- The right to paid maternity leaves was also given under Section 5 of the 1961 Act, although the period of such leave could not exceed twelve weeks, “that is to say, six weeks up to and including the day of her delivery and six weeks immediately following that day.”
- Additionally, no woman could be allowed to avail maternity benefits if she had not worked in the establishment for at least “one hundred and sixty days in the twelve months immediately preceding the date of her expected delivery.”
- These benefits would be allowed without dismissing the female worker from service or reduction of wages
- Violating provisions of the Act could result in three months’ punishment, with or without a fine
- On March 9, 2017, the Maternity Benefits (Amendment) Act 2017, was passed by Parliament, which brought about key changes to the original Act
5. Way Forward
The Court also urged the Union government to consider introducing a comprehensive legal provision that formally recognises paternity leave for all fathers, whether biological or adoptive. It observed that India’s existing legal framework does not sufficiently acknowledge the role of fathers in childcare and stressed the need to promote shared parenting responsibilities. At present, only male government employees are eligible for 15 days of paternity leave in cases of childbirth or adoption, while in the private sector, such leave is largely governed by individual company policies
Source: The Hindu
