HEAT AND CLIMATE CHANGE
- In the context of microscopy, the temperature of an object reflects the average kinetic energy of its particles.
- When two objects at different temperatures come into contact, the cooler one will heat up while the warmer one cools down. Here, heat refers to the thermal energy exchanged between the objects to cause this change in temperature.
- On a larger scale, heat is treated as a type of energy with distinct properties, analyzed through thermodynamics, statistical mechanics, and related disciplines.
- A substance can take in heat at one location and release it at another, a principle that underlies many contemporary technologies such as thermal and nuclear power plants and air conditioning systems.
- Engineers have devised methods to transform heat into mechanical energy, enabling the creation of machines like the internal combustion engine
- One of the best ways to grasp the concept of heat is by looking at its applications, such as internal combustion engines (ICEs) and thermal power plants.
- An ICE transforms heat into mechanical work, effectively applying the theoretical Carnot cycle, which defines the highest efficiency an engine can achieve in converting heat to work.
- The engine consists of four main components: a hot reservoir (with more heat), a cold reservoir (with less heat), an ideal gas between the reservoirs (transferring heat), and a piston next to the gas. Each cycle includes four stages.
- In the first stage, isothermal expansion, the ideal gas is insulated from the cold reservoir and exposed to the hot reservoir.
- Heat from the hot reservoir, produced for example by burning petrol, transfers to the gas, causing it to expand and push the piston. The second stage, isentropic expansion, continues the gas expansion while insulated from both reservoirs.
- The gas cools slightly as it does work on the piston without a temperature change due to insulation. These two steps involve the piston doing work on its surroundings.
- The third stage, isothermal compression, exposes the gas to the cold reservoir, where it releases its remaining heat.
- The piston moves downward in this stage. In the fourth stage, isentropic compression, the gas is again insulated from the reservoirs while the piston continues downward, compressing and warming the gas, readying it for the next cycle. In these last two steps, the surroundings work on the piston.
- Similarly, a thermal power plant consists of a boiler, turbine, generator, condenser, and pumps, with water as the working fluid. The ideal version of this system is the Rankine cycle, also comprising four stages.
- In the first stage, isentropic compression, a pump compresses the water to high pressure. During the second stage, heat addition, the water is pumped to the boiler and heated by an energy source, such as burning coal or nuclear fission, transforming it into saturated vapor under high pressure.
- The third stage, isentropic expansion, involves the pressurized vapor expanding in the turbine, releasing heat and reducing pressure. This expansion drives the turbine blades, generating power through the generator.
- In the final stage, heat removal, the cooled vapor enters the condenser, where it is condensed back to a saturated liquid at a fixed pressure. The condenser acts as a heat exchanger, using a coolant, such as cold water, to absorb the vapor's heat
- Heat and work share the same physical dimensions, but not all heat can be converted into work. For instance, if a system performs work while losing thermal equilibrium, it will lose some energy.
- This can occur in an internal combustion engine (ICE) if, for example, it isn't well-lubricated, causing friction as the piston moves against the combustion chamber walls. This loss of 'useful heat' is tied to the concept of entropy, which indicates disorder in a system and prevents the associated heat from being converted into work.
- Additionally, when a system performs work without losing or gaining heat—such as during the isentropic expansion and compression steps of the Carnot cycle—the process is considered adiabatic. Fully adiabatic processes are reversible.
- Components of ICEs and thermal power plants are designed to alternate a medium that transports heat through different states, in steps that aim to maximize work output and minimize entropy changes and other energy losses
- Understanding the microscopic and macroscopic properties of heat has been vital in fields such as metallurgy and materials science, mining, refineries, various chemical reactions, semiconductor electronics, meteorology, and transportation.
- Heat plays a significant role in Heating, Ventilation, and Air-Conditioning (HVAC) systems. In many cold regions, heat is generated and transported from centralized facilities to homes and offices.
- Individual homes often use electric heaters, which convert electrical energy to heat by passing a current through a resistor, to stay warm. Recently, experts have advocated for a 'right to air-conditioning' for people in low- and middle-income countries facing extreme heat.
- Heat engines like internal combustion engines (ICEs) and steam engines operate on the Carnot cycle. Heat pumps, which are essentially air conditioners that heat rather than cool, use the reverse Carnot cycle.
- Air conditioners for cooling large spaces, such as halls and car interiors, utilize the reverse Rankine cycle.
- Other cycles, depending on the heat-transporting medium and desired operating conditions, include the Brayton, gas-generator, regenerative, Siemens, and Stirling cycles
- The global response to climate change is focused on two main strategies: mitigation and adaptation. For climate mitigation, researchers worldwide are developing new methods to generate heat energy without burning fossil fuels and finding ways to reduce emissions from existing technologies. Meanwhile, policymakers are working on new incentives to encourage the adoption of these solutions.
- In terms of climate adaptation, heat waves are a significant concern, especially in India. During a heat wave, the impact on health depends on the body's pre-existing health conditions and its ability to prevent heat accumulation.
- Long-term health is influenced by living conditions, access to clean environments, and healthcare. Short-term heat management depends on immediate measures to reduce heat buildup. When the wet-bulb temperature exceeds about 32 degrees Celsius, even brief periods of light outdoor activity can cause severe harm.
- Global warming itself is essentially a heat issue. Solar energy reaches the Earth, with some being reflected, some absorbed by the atmosphere, and some warming the ground. At night, the Earth emits this absorbed energy as infrared radiation.
- Greenhouse gases like carbon dioxide, methane, and water vapour absorb this radiation, convert it to kinetic energy, and heat the atmosphere, which reduces the Earth's ability to cool down efficiently
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For Prelims: COP28, Organisation for Economic Cooperation and Development, Climate Finance, Climate Change, United Nations Framework Convention on Climate Change, Nationally Determined Contributions, COP27, Copenhagen Accord, Paris Agreement
For Mains:
1. Discuss the impact of climate change on developing economies. How can climate finance be effectively utilized to promote sustainable development in these economies? (250 Words)
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Previous Year Questions
1. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility for global warming and committed to donate $1000 billion a year from 2020 to help developing countries cope with climate change.
Select the correct answer using the code given below
A. 1 and 3 only
B. 2 only C. 2 and 3 only D. 1, 2 and 3 Answer: B
2. The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of ( UPSC 2016)
A. pledges made by the European countries to rehabilitate refugees from the war-affected Middle East
B. plan of action outlined by the countries of the world to combat climate change
C. capital contributed by the member countries in the establishment of the Asian Infrastructure Investment Bank
D. plan of action outlined by the countries of the world regarding Sustainable Development Goals
Answer: B 3. The UN Framework Convention on Climate Change (UNFCCC) has announced which country to host the 28th Conference of the Parties (COP28) in 2023? (SSC CGL 2023) A. UAE B. US C. UK D. Russia Answer: A
4. Consider the following statements with reference to Organisation for Economic Co-operation and Development (OECD): (RBI Grade B 2022)
1. OECD is an official Permanent observer to the United Nations and is referred to as a think-tank or as a monitoring group.
2. India is not a member of OECD.
3. OECD is funded by its member countries.
Which of the statement given above is/ are correct?
A. 1 only B. 1 and 2 only C. 2 and 3 only D. 1, 2 and 3 E. 2 only Answer: D 5. Which of the following statements regarding 'Green Climate Fund' is/are correct? (UPSC 2015)
1. It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change.
2. It is founded under the aegis of UNEP, OECS, Asian Development Bank and World Bank.
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 6. The 27th annual UN meeting on climate, COP27 (Conference of Parties) took place from 6th to 18th November, in which of the following country? (SSC GD Constable 2023) A. France B. Brazil C. Indonesia D. Egypt Answer: D 7. According to the Copenhagen Accord, what percentage of India has promised to reduce carbon emissions by the year 2020 as compared to 2005? (UP Police SI 2017) A. 20-25 percent B. 10-15 percent C. 30-35 percent D. 5-10 percent Answers: 1-B, 2-B, 3-A, 4-D, 5-A, 6-D, 7-A Mains 1. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (upsc 2021) |
INDIA'S LABOUR MARKET
- India’s labour market indicators remain strong, with the Labour Force Participation Rate recorded at 59%, the Workforce Participation Rate at 57%, and unemployment at only 3%.
- Youth unemployment has shown a downward trend since 2024 in both rural and urban regions. In addition, successive Monthly PLFS reports during 2025 highlight a steady rise in women’s workforce participation.
- Rural female LFPR continued to improve through September 2025, reaching the highest level observed since May, indicating a consistent positive trend across multiple survey cycles.
- Employment quality has likewise improved over time. The proportion of workers engaged in regular salaried jobs increased from 22% to 24%, benefiting both men and women. At the same time, the share of self-employed workers declined from 58% to 56%.
- Since salaried employment generally offers greater income stability and social security benefits, this transition represents one of the most significant developments reflected in the 2025 labour data.
- Income patterns further support these improvements, especially for women workers. Earnings among women in regular salaried jobs rose by 7%, slightly higher than the 6% increase recorded for men.
- In self-employment, women’s earnings increased by 9% compared to 8% for men. Similarly, women engaged in casual labour witnessed a 5% rise in wages, whereas male wages in this category remained largely stagnant.
- Despite these gains, gender disparities in earnings continue to persist. Available data suggests that women receive nearly 76% of male earnings in salaried occupations, about 69% in casual work, and only 36% in self-employment.
- Although significant gaps remain, the growing movement toward salaried employment is gradually generating more meaningful economic benefits for women.
- Economic transformation is also reshaping employment patterns. Agriculture now accounts for 43% of total employment, while manufacturing and services contribute roughly 12% and 13%, respectively.
- Increasing numbers of young workers, especially women, are joining manufacturing and service industries.
- Moreover, occupational segregation based on caste and gender is less pronounced among younger generations than older ones, reflecting the long-term impact of improved educational access and greater social mobility, which are now contributing to more inclusive labour market outcomes
- A major concern continues to be the transition from education to employment. India has greatly increased access to higher education, enabling students from a wider range of economic backgrounds to pursue tertiary studies.
- However, important gaps still persist. Between 2004 and 2023, nearly 5 million graduates entered the labour market every year, yet only around 2.8 million were able to obtain employment of any form.
- Insufficient access to structured skill development remains another obstacle. Merely 4% of people in the 15–59 age group have undergone formal vocational or technical training.
- At the same time, labour force participation among trained individuals is considerably higher — about 83% for men and 51% for women — highlighting the strong connection between skill acquisition and employment opportunities. This demonstrates the need to expand and strengthen skill-training initiatives on a much larger scale.
- Ensuring long-term participation of women in the workforce is another critical issue. While men outside the labour force mostly identified education as the reason for non-participation, women largely pointed to childcare and domestic responsibilities.
- This reflects deeper structural inequalities arising from the unequal burden of unpaid household work.
- For example, self-employed urban men work nearly 17.5 hours more per week than women, while among regular salaried employees the gap stands at roughly 7.9 hours weekly, illustrating the disproportionate dual burden of paid and unpaid labour carried by women.
- A further concern relates to the NEET population — youth who are neither in education, employment, nor training. Approximately one-fourth of individuals aged 15–29 belong to this category.
- Since they are excluded from official unemployment statistics, the scale of the issue often remains understated. If not addressed promptly, prolonged disengagement may push many young people into long-term detachment from the labour market
- The Periodic Labour Force Survey (PLFS) is India’s main survey for understanding the condition of employment and unemployment in the country. It is conducted by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
- The survey was introduced in 2017 to provide regular and reliable information about the labour market, replacing the earlier employment surveys conducted by the National Sample Survey Office.
- The need for PLFS arose because India’s economy and labour market were changing rapidly, but employment data was not available frequently enough.
- Policymakers required updated information to understand how many people were working, how many were unemployed, and how labour patterns were changing across rural and urban areas.
- To address this gap, PLFS was designed to provide both annual and quarterly estimates on employment-related indicators.
- The survey studies the participation of people in economic activities. It measures how many individuals are employed, how many are actively searching for work, and how many remain outside the labour force.
- Through this, it calculates important indicators such as the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). These indicators help in assessing the overall health of the economy and the availability of jobs.
- PLFS also provides detailed insights into the nature of employment in India. It classifies workers into categories such as self-employed persons, regular salaried employees, and casual labourers.
- This distinction is important because different forms of employment offer different levels of income security, social protection, and job stability. For example, regular salaried employment is generally considered more secure than casual labour.
- Another important feature of PLFS is that it captures differences across gender, age groups, education levels, and regions.
- It highlights issues such as women’s participation in the workforce, youth unemployment, rural–urban disparities, and shifts in employment from agriculture to manufacturing and services. Because of this, the survey has become an essential tool for analysing structural changes in the Indian economy.
- The survey uses different approaches to measure employment status. The “Usual Status” method examines a person’s employment situation over a longer reference period, while the “Current Weekly Status” method looks at whether a person worked for at least one hour during the previous seven days. These methods help provide a broader and more accurate picture of employment conditions.
- Today, PLFS serves as the most important official source of labour market data in India. Governments, economists, researchers, and policymakers rely on it to formulate employment policies, assess economic performance, design welfare programmes, and evaluate the impact of reforms on workers and livelihoods
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Female Labour Force Participation (FLFP)
Female Labour Force Participation (FLFP) refers to the proportion of women in the working-age population who are either employed or actively seeking employment. In simple terms, it measures how many women are participating in economic activities within a country. It is usually expressed through the Female Labour Force Participation Rate (FLFPR), which indicates the percentage of women who are part of the labour force compared to the total female population within a specified age group. Women who are working in jobs, self-employment, farming, business activities, or even looking for work are included in the labour force. However, women who are neither working nor searching for employment are considered outside the labour force. Female labour force participation is considered an important indicator of economic development, gender equality, and social progress. A higher participation rate generally reflects better access to education, employment opportunities, skill development, mobility, and financial independence for women. It also contributes to higher household incomes, poverty reduction, and overall economic growth. In India, female labour force participation has traditionally remained lower than that of men due to several social, cultural, and economic factors. Many women are engaged in unpaid domestic work such as childcare, cooking, and household responsibilities, which are not counted as economic activities in official surveys. Other factors such as lack of safe transportation, limited access to formal jobs, wage inequality, social norms, and interruptions caused by marriage or motherhood also affect women’s participation in the workforce. |
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Hindu
SOUTHWEST MONSOON
- The southwest monsoon is a seasonal weather pattern that brings significant rainfall to large parts of South Asia, particularly India, between June and September
- The southwest monsoon typically begins in early June and lasts until late September. It starts with the arrival of the monsoon winds in the southern part of India, usually marked by the onset over the state of Kerala
- The southwest monsoon brings about 70-90% of India’s annual rainfall. The distribution of rainfall varies, with some regions receiving heavy rains, while others may experience scanty showers.
- The Western Ghats, the northeastern states, and the Himalayan foothills typically receive very heavy rainfall.
- The monsoon is critical for the Kharif crop season in India, which includes crops like rice, maize, pulses, and cotton. Adequate and timely monsoon rains are essential for a good harvest
- The monsoon starts retreating from northwestern India in early September and completely withdraws from the Indian subcontinent by mid-October. This phase is also known as the retreating or northeast monsoon
Mechanism:
- High-Pressure Area: During the summer, intense heating of the landmass in the Indian subcontinent creates a low-pressure area over northern India and the Tibetan Plateau.
- Low-Pressure Area: The Indian Ocean remains relatively cooler, creating a high-pressure area.
- Wind Movement: Air moves from the high-pressure area over the ocean to the low-pressure area over the land, carrying moisture from the ocean and resulting in rainfall.
- Easterly and westerly winds refer to the direction from which the winds originate
- Easterly winds are winds that blow from the east towards the west
- Easterly winds can affect weather patterns, including the development of tropical storms and cyclones. For instance, easterly waves in the tropics can lead to the formation of tropical cyclones in the Atlantic and Pacific Oceans
Characteristics:
- Trade Winds: One of the most well-known examples of easterly winds are the trade winds. These winds blow from the east towards the west in the tropics, from the subtropical high-pressure areas toward the equatorial low-pressure areas.
- Tropical Regions: In the tropical regions, particularly between 30 degrees north and south of the equator, easterly winds are prevalent. These are crucial for the weather patterns and climatic conditions in these regions.
- Monsoon Winds: During certain seasons, such as the northeast monsoon in India, easterly winds play a significant role. These winds bring dry air from the land towards the ocean during the winter months.
- Westerly winds are winds that blow from the west towards the east
- Westerly winds play a significant role in the weather of temperate regions, influencing the climate and the movement of storm systems.
- They are also responsible for carrying warm and moist air from the oceans inland, affecting precipitation patterns in coastal and inland regions.
- The westerlies can affect transoceanic travel and weather prediction due to their influence on the movement of high and low-pressure systems
Characteristics:
- Prevailing Westerlies: These winds are predominant in the mid-latitudes (between 30 and 60 degrees north and south of the equator). They blow from the subtropical high-pressure belts towards the poles.
- Jet Streams: High-altitude westerly winds known as jet streams are important in influencing weather patterns and the movement of weather systems across the globe. They are fast flowing and occur in the upper levels of the atmosphere.
- Polar Front: In the mid-latitudes, the westerlies interact with polar easterlies near the polar front, leading to the development of extratropical cyclones and storms
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Monsoons in India occur due to seasonal changes in wind patterns and temperature differences between land and sea.
Here's a concise explanation of the process:
- Differential heating: During summer, the Indian landmass heats up more quickly than the surrounding Indian Ocean.
- Low pressure system: The heated land creates a low-pressure area over the Indian subcontinent.
- Wind direction shift: This low pressure draws in moisture-laden winds from the cooler Indian Ocean towards the land.
- Orographic lift: As these winds encounter geographical features like the Western Ghats or the Himalayas, they are forced to rise.
- Condensation and precipitation: The rising air cools, causing water vapor to condense and form clouds, leading to heavy rainfall.
- Duration: This pattern typically lasts from June to September, bringing the majority of India's annual rainfall.
- The primary driver is the temperature difference between the land and the surrounding sea. During summer, the land heats up faster than the ocean, creating a low-pressure area over the land and a high-pressure area over the ocean. This pressure difference leads to the movement of moist air from the ocean to the land
- Warm sea surface temperatures are crucial as they increase the evaporation rate, contributing to the formation of moist air masses that drive the monsoon rains.
- The monsoon winds, which are part of the larger atmospheric circulation, shift according to the seasonal temperature differences. The southwest monsoon, for instance, is driven by the southwest winds that carry moisture from the Indian Ocean to the Indian subcontinent.
- The geographical features, such as mountain ranges, play a significant role. For example, the Western Ghats in India force moist air to rise, cool, and condense, leading to heavy rainfall on the windward side
- The movement and strength of the high-pressure systems over the oceans and low-pressure systems over the land influence the intensity and timing of the monsoon.
- Phenomena such as El Niño and La Niña can affect the strength and timing of the monsoon. For example, El Niño can lead to weaker monsoons due to altered wind patterns and sea surface temperatures
- El Niño is generally associated with a weaker Indian monsoon. The warming of the central and eastern Pacific Ocean during El Niño tends to disrupt the normal atmospheric circulation patterns, leading to reduced rainfall over the Indian subcontinent.
- The onset of the monsoon can be delayed, and the overall intensity of the rainfall during the monsoon season might be lower than usual
- El Niño often brings drier conditions to Southeast Asia and northern Australia, leading to droughts and reduced rainfall
- Eastern and southern Africa may experience drier conditions as well
- La Niña, characterized by cooler-than-average sea surface temperatures in the central and eastern Pacific Ocean, is typically associated with a stronger Indian monsoon. It often leads to increased rainfall over the Indian subcontinent
- The enhanced monsoon can lead to heavier rains and potentially more frequent and intense flooding
- La Niña tends to bring wetter conditions to Southeast Asia and northern Australia, potentially causing heavy rains and flooding
- La Niña can lead to wetter conditions in parts of northern South America
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For Prelims: Indian and World Geography
For Mains: GS-I, GS-III: Important Geophysical phenomena and environment
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Previous Year Questions
1.Consider the following statements: (UPSC CSE 2012)
1. The duration of the monsoon decreases from southern India to northern India.
2. The amount of annual rainfall in the northern plains of India decreases from east to west.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 Only
C. Both 1 and 2
D. Neither 1 nor
Answer (C)
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INDIA-UAE
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Economic Relations: The UAE is India's third-largest trading partner and one of the major investors in India. Bilateral trade between the two countries has been growing steadily, with a focus on sectors like energy, information technology, pharmaceuticals, textiles, and agriculture. The UAE is also a significant source of remittances for India due to the large Indian diaspora residing in the UAE.
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Investment: The UAE has made substantial investments in India across sectors such as infrastructure, real estate, hospitality, logistics, and renewable energy. The Abu Dhabi Investment Authority (ADIA) and the Dubai-based DP World are prominent examples of UAE investments in India.
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Energy Cooperation: The UAE is a crucial source of energy for India. The Abu Dhabi National Oil Company (ADNOC) supplies crude oil to Indian refineries, and both countries have explored opportunities for collaboration in the energy sector, including renewable energy projects.
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Defense and Security: India and the UAE have enhanced cooperation in defense and security matters. They conduct joint military exercises, exchange intelligence, and cooperate in countering terrorism and maritime security. The UAE has also supported India's efforts to combat terrorism and extradite wanted individuals.
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Strategic Partnership: In 2015, India and the UAE elevated their bilateral relationship to a "Comprehensive Strategic Partnership." This designation reflects the deepening ties and shared interests between the two countries.
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Cultural Exchanges and People-to-People Contacts: There is a significant Indian community in the UAE, comprising professionals, skilled workers, and businesspeople. Both countries have encouraged cultural exchanges, tourism, and educational cooperation to strengthen people-to-people contacts and promote mutual understanding.
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Diplomatic Engagements: High-level visits between India and the UAE have been frequent, reflecting the importance both countries attach to the relationship. The leaders of both countries have engaged in regular dialogues to enhance bilateral cooperation and address common challenges.
The United Arab Emirates (UAE) holds significant importance to India for several reasons:
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Economic Relations: The UAE is one of India's major trading partners and a significant source of investment. Bilateral trade between the two countries has been growing steadily, with the UAE being India's third-largest trading partner. The UAE's investments in India span various sectors, including infrastructure, real estate, hospitality, logistics, and renewable energy. This economic partnership contributes to India's economic growth and development.
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Energy Security: The UAE is an important source of energy for India. It supplies crude oil to Indian refineries, helping to meet India's energy needs. Ensuring a stable and reliable energy supply is crucial for India's growing economy, and the UAE plays a significant role in fulfilling India's energy requirements.
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Indian Diaspora: The UAE is home to a large Indian diaspora, comprising professionals, skilled workers, and businesspeople. The Indian community in the UAE plays a vital role in strengthening people-to-people ties and contributing to the UAE's economy through their work and remittances. The UAE's favorable policies towards the Indian community and its contributions have fostered a sense of goodwill and mutual understanding between the two countries.
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Defense and Security Cooperation: India and the UAE have been strengthening their defense and security cooperation in recent years. They conduct joint military exercises, share intelligence, and collaborate in countering terrorism and ensuring maritime security. The UAE's support to India's counter-terrorism efforts and extradition of wanted individuals have been crucial in addressing shared security concerns.
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Strategic Location: The UAE's geographic location at the crossroads of Asia, Europe, and Africa makes it an important hub for trade, connectivity, and investment. Its modern infrastructure, world-class ports, and air connectivity make it an attractive destination for Indian businesses looking to expand their reach globally. The UAE's strategic location serves as a gateway for India's trade with the Middle East, North Africa, and beyond.
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Cultural Exchanges and Tourism: The UAE and India have fostered cultural exchanges and tourism, facilitating people-to-people contacts and enhancing mutual understanding. Millions of Indians visit the UAE for business, tourism, and religious purposes, strengthening the cultural and social ties between the two countries.
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Diplomatic Engagements: India and the UAE maintain regular high-level engagements, with frequent visits by leaders and officials from both sides. These interactions help in deepening bilateral relations, addressing common challenges, and exploring new avenues of cooperation..
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For Prelims: India-UAE, Global food security, G20, I2U2, Public Distribution System, POSHAN Abhiyaan, Covid, Conflict and Climate, Comprehensive Economic Partnership Agreement,
For Mains:
1. Discuss India's role in ensuring global food security during the pandemic and post-pandemic times. (250 Words)
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Previous Year Questions
1. With reference to the international trade of India at present, which of the following statements is/are correct? (UPSC 2020)
1. India's merchandise exports are less than its merchandise imports.
2. India's imports of iron and steel, chemicals, fertilizers, and machinery have decreased in recent years.
3. India's exports of services are more than its imports of services.
4. India suffers from an overall trade/current deficit.
Select the correct answer using the code given below:
A. 1 and 2 only B. 2 and 4 only C. 3 only D. 1, 3 and 4 only
Answer: D
2. Consider the following countries: (UPSC 2018)
Which of the above are among the ‘free-trade partners’ of ASEAN? (a) 1, 2, 4 and 5 (b) 3, 4, 5 and 6 (c) 1, 3, 4 and 5 (d) 2, 3, 4 and 6 Answer: C 3. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (UPSC 2016) (a) G20 (b) ASEAN (c) SCO (d) SAARC Answer: B 4. The area known as ‘Golan Heights’ sometimes appears in the news in the context of the events related to ( UPSC 2015) (a) Central Asia (b) Middle East (c) South-East Asia (d) Central Africa Answer: B 5. Which of the following are the objectives of ‘National Nutrition Mission’? (UPSC 2017)
Select the correct answer using the code given below: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 1, 2 and 4 only (d) 3 and 4 only Answer: A |
MINIMUM SUPPORT PRICE
1. Context
The Iran crisis-induced supply shock in fertilisers and a below-normal monsoon may give a boost to bajra, moong and other pulses. MSP procurement by the government can also help.
2. What is the Minimum Support Price (MSP)?
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- MSP is the minimum price a farmer must pay for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
- The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
- After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
- The Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
- 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
- 5 pulses (chana, tur/arhar, moong, urad, and Masur)
- 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and Enigerseed) and
- 4 commercial crops (sugarcane, cotton, copra, and raw jute).
3. How MSP is Calculated?
- MSP, presently, is based on a formula of 1.5 times the production costs.
- The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
- A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
- A2+FL includes A2 plus an imputed value of unpaid family labour.
- C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
- Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.
4. The issue with the calculation of MSP
- To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
- For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
- The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.
5. Key Points about the Farmer's Demand
- After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
- They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
- Legalising MSPs would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
- At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
- The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
- Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.
6. The rationale behind the demand for legislation of MSP
- Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
- Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.
7. Challenges associated with MSP
- Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reform laws.
- MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
- High Input Costs: The input costs have been rising faster than sale prices, squeezing the meagre income of the small farmers and driving them into debt.
- Lack of Mechanism: No mechanism guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
- Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
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For Prelims: Minimum Support Price, Rabi Crops, WTO, Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India
For Mains:
1. Explain the concept of Minimum Support Price (MSP) in India. How is MSP determined, and what is its role in ensuring fair prices for agricultural produce? (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
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: D
2. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price (2) Government’s trading (3) Government’s stockpiling (4) Consumer subsidies Select the correct answer using the code given below: (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer: D
3. In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops (2) Computerization of Primary Agricultural Credit Societies (3) Social Capital development (4) Free electricity supply to farmers (5) Waiver of agricultural loans by the banking system (6) Setting up of cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6 Answer: C
4. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee Answer: A
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RETAIL INFLATION
1. Context
2. What is Inflation?
- It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
- In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
- Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.
3. Retail Inflation
4. How Inflation is measured?
- In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
- The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
- On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
- Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India.
5. What is the Inflation Target?
- Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
- Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
- On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
- Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.
6. Monetary Policy Committee (MPC)
- The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
- It was created to bring transparency and accountability in deciding monetary policy.
- MPC determines the policy interest rate required to achieve the inflation target.
- The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
- The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.
7. What Caused the drop in Inflation?
- Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
- The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
- With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
- Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.
8. Recent Measures by the Government
For Prelims & Mains
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For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation For Mains:
1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4
3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only 5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only B. 2 only C. 2 and 3 only D. 1, 2 and 3
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
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