Iasbaba S October 2016

04/11/2016
IASbabas Daily Current Affairs 1st October, 2016 | IASbaba
IASbabas Daily Current Affairs 1st October, 2016

iasbaba.com/2016/10/iasbabas-daily-current-affairs-1st-october-2016/
IAS baba
01/10/2016
Archives
ENVIRONMENT/S & T
TOPIC: General Studies 3

Environment and Ecology, Bio diversity Conservation, environmental degradation,
environmental impact assessment, Environment versus Development
Major crops cropping patterns in various parts of the country, different types of
irrigation and irrigation systems storage, transport and marketing of agricultural
produce and issues and related constraints; e-technology in the aid of farmers
Science and Technology- developments and their applications and effects in everyday
life
Achievements of Indians in science & technology; indigenization of technology and
developing new technology.
GM Mustard Issue
What is a GM crop?
A GM or transgenic crop is a plant that has a novel combination of genetic material obtained through the use
of modern biotechnology.
For example, a GM crop can contain a gene(s) that has been artificially inserted instead of the plant acquiring
it through pollination.
The resulting plant is said to be genetically modified although in reality all crops have been genetically
modified from their original wild state by domestication, selection, and controlled breeding over long periods
of time
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Why GM Mustard in news?

Recently GEAC i.e the government has deferred a decision on allowing commercial cultivation of Mustard
DMH-11, a transgenic crop developed by Centre for Genetic Manipulation of Crop Plants at Delhi University.
GM mustard (DMH11) is the first food crop to have applied for commercialisation after the indefinite ban on
the GM brinjal by the Jairam Ramesh-led environment ministry in 2010.
Picture Credit: http://www.hindustantimes.com/rf/image_size_800x600/HT/p2/2016/02/08/Pictures/govt-maysupport-gm-mustard-ht-delhi_6196d8cc-ce52-11e5-94bd-a06a76346e8f.jpg

What is GM Mustard?
DMH-11 is a Genetically Modified (GM) mustard hybrid. Hybrids are normally obtained by crossing 2
genetically diverse plants from the same species.
The 1st-generation offspring resulting from it has higher yields than what either of the parents is individually
capable of giving. But there is no natural hybridization system in mustard, unlike in, say, cotton, maize or
tomato. This is because its flowers contain both the female (pistil) and male (stamen) reproductive organs,
making the plant naturally self-pollinating.
What scientist has done is to create a viable hybridization system in mustard using GM technology. The resulting
GM mustard hybrid, it is claimed, gives 25-30% more yield than the best varieties such as Varuna currently grown
in the country.
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Scientists at the Centre for Genetic Manipulation of Crop Plants (CGMCP) in Delhi University, however, showed that
this problem could be addressed by crossing Indian mustard cultivars with juncea lines of East European origin like
Early Heera and Donskaja. The combination of the 2 divergent gene pools enhanced the crossing options; the
resultant F1 progeny were found to exhibit significant heterosis.
What is a controversy about GM Mustard?
Many scientist claim that at a time when sustainable farming and low-input agriculture are becoming the
buzzwords, it is surprising that agricultural scientists continue to recommend crop varieties that will end up
doing more harm to the environment and crop fields. GM mustard will require almost double the quantity of
fertiliser and water.
Other health concerns of GM Hybrid Mustard include: allergenicity; gene transfer, especially of antibioticresistant genes, from GM foods to cells or bacteria in the gastrointestinal tract; and out crossing, or the
movement of genes from GM plants to conventional crops, posing indirect threats to food safety and security.
GM mustard can affect honeybees directly and indirectly through effecting flowering and pollen production.
Protease inhibitors have proved detrimental to the longevity and behaviour of bees.
Regulatory weakness The Genetic Engineering Approval Committee, which is responsible for approving
large-scale releases and commercialisation of GMOs, functions under the Ministry of Environment and
Forests and is not entirely independent.
The case of the Review Committee on Genetic Manipulation that supervises and clears research activities
and also small-scale field trials is even starker. It is part of the Department of Biotechnology, whose primary
task is to promote biotechnology. DBT therefore is the promoter as well as the regulator. On several
occasions, developers of transgenic crops have also been members of regulatory committees.
Should India Ban GM Crops?

GM technology has already been commercialized in India through Bt cotton, which is also based on
incorporation of foreign genes derived from a soil bacterium, Bacillus thuringiensis.countrys cotton
production has gone up more than 2 times since Bt hybrids were first planted in 2002. Nor has any
evidence emerged really of Bt cotton causing any adverse human or animal health effects.
While the likes of Pakistan, Bangladesh, Myanmar, Philippines and Vietnam are adopting GM technology to
improve crop yields and reduce input costs, we are still questioning its potential not on the basis of scientific
evidence, but using emotional arguments.
Bangladesh was the 1st country to approve the commercial planting of Bt brinjal in late-2013, after being
disallowed by India. Bt brinjal has been harvested over 2 seasons, with farmers deriving better marketable
yields and incomes from its successful commercialization.
Conclusion
In a current environment where climatic change would have negative effects on yield of many major crops which
could seriously undermine food security, GM crops are the way forward. However at the same time to convince the
opponents of GM crops to allow commercialization of GM crops we need a strong regulatory framework. What is
therefore needed is an independent biotechnology regulatory authority, a single organization that will replace the
multiple committees at least six that are part of the current regulatory structure. This authority would deal with
the use of all GMOs in agriculture, pharmaceutical and biodiversity sector.
Connecting the dots:
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Write a critical note on the genetically modified crops and food production scenario in India with special focus
on related policies.
Write a brief note on genetically modified crops and how they differ from hybrid crops. What are the possible
challenges and benefits of GM crops?
Discuss the controversy regarding GM Mustard in India. Critically examine whether India should ban GM
crops?
NATIONAL

Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.
Issues relating to development and management of Social Sector or Services relating
to Health, Education, Human Resources.
Challenges to financial inclusion

Ensuring financial inclusion in India is a challenge where nearly one-fourth of population is illiterate and below
the poverty line.
The two indicators, poverty and illiteracy, vary widely between different States in India.
Rural poverty is above 30% of population in places such as Assam, Bihar, Madhya Pradesh, Uttar Pradesh,
Orissa, Jharkhand, Chhattisgarh, and Manipur.
Rural poverty can be attributed to lower farm income, lack of sustainable livelihood, lack of skills, under
employment and unemployment.
In such circumstances, there is utmost need of financial inclusion. But, impractical goals and their blanket
implementation fails to achieve its worth.
Fraud due to illiteracy
Though India has literacy rate of 73% but some states such as Bihar, Uttar Pradesh, Jharkhand, Madhya
Pradesh and Rajasthan have literacy rate ranges between 62-70%.
The banks have devised a way to address limitations arising out of illiteracy by ensuring biometric access to
bank accounts.
However, Aadhar seeding implies that numericals still have to be to be punched into the machine to operate
an account.
As all the numerals are in English, only the banker or the business correspondent (BC) can punch in the
Aadhaar number. Also, the messages received on phone are also in English and thus, an illiterate person
has to seek someones assistance to understand and interpret the message.
In each of the above cases, the privacy of an individuals bank balance is breached. This makes the
illiterates, females and elderly vulnerable to malpractices.
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There are also stories that enterprising BCs give the same Personal Identification Number (PIN) to all the
residents in a single village to ensure ease of business.
This gives a chance of once again compromising the privacy of the beneficiaries as well as embarrassment to
officials when direct benefit transfers through bank accounts are implemented on a larger scale.
In addition, it has to be also examined that despite extensive efforts from authorities, PMJDY has
underperformed. One of the reason could be the product offered. A recurring deposit suits the salaried
income group more than people in informal sector whose incomes are uncertain, seasonal and unplanned.
Thus, a financial inclusion strategy sensitive to regional, demographic and gender related factors,
needs to be carefully crafted.
Accounts have to be operational

When PMJDY was announced, mainly public sector banks (PSBs) rose to the occasion in ensuring that every
unbanked household had a bank account.
With an unparalleled feat in financial inclusion of achieving 25 crore PMJDAs, the PSBs should also shoulder
the responsibility to ensure that these bank accounts are operational.
However, it has to be noted that before PMJDA, total accounts on books of commercial banks were around 1
lakh crore. With incoming of such huge numbers of bank accounts but the limited resources with banking
sector, the attention of bankers shifted from their principal activity of mobilising resources and lending to
reliable borrowers.
To ensure that the banking industry is robust and existing banking assets safe, the next challenge is to
monitor existing borrower accounts.
Regulatory authorities
There are number of regulatory authorities that have a role to play in financial inclusion Reserve Bank,
National Bank for Agriculture and Rural Development (NABARD), Securities and Exchange Board of India,
Small Industries and Development Bank of India, and MUDRA bank.
But, there is a need to fix responsibility on a single regulatory authority to ensure that JDAs are
operational.
In this context, NABARD has an extensive presence across the country and was formed for the purpose of
development of agriculture and rural areas. Thus, NABARD should be made the nodal and accountable
agency for financial inclusion.
Though it might not have the existing capacity to accept the challenge but can certainly be prepared in a
phased manner in next few years. It has now been investing in modernising, and infusing technology in
cooperative institutions.
Conclusion
Is interest rate the most important factor to borrow money and in larger picture, for financial inclusion? Not ExactlyHeres why
The moneylenders still account for 30% of total banking business. Despite persistent efforts by institutions in
formal sector moneylenders still flourish in the financial market.
During chanakya, the interest rate structure was risk weighted and banking business flourished even then
traders were generally charged 60% per annum, if goods passed through forest then 120%, and sea-borne
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cargo at 24%.
Then in modern times, if interest rates matter, then the reason for people going to moneylenders despite a
network of banks, cooperatives, MFIs and SHGs, has to be acquired through grassroot level research.
Traditionally, financial inclusion meant opening new bank branches in rural and unbanked areas. But now, it should
be taken now in broader sense which includes taking formal financial services across India and adapting technology
to cater needs of the grass-root level beneficiaries.
What is financial inclusion? What steps are taken by government to escalate the process?
Critically examine the government schemes to achieve financial inclusion.
Related articles:
The path named Financial Inclusion
TLP 2015
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IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba
IASbabas Daily Current Affairs 3rd October, 2016

iasbaba.com/2016/10/iasbabas-daily-current-affairs-3rd-october-2016/
IAS baba
03/10/2016
Archives
SECURITY/NATIONAL
TOPIC:
General Studies 3
Awareness in the fields of IT, computers,
Challenges to internal security through communication networks, basics of cyber security; moneylaundering and its prevention.
Linkages of organized crime with terrorism.
General Studies 2
Government policies and interventions for development in various sectors and issues arising out of
their design and implementation.
Important aspects of governance
Cybercrime and need of robust cyber security policy

Cyber security and defence against cyber warfare assume greater significance due to rapidly increasing risks,
vulnerabilities, threats, cybercrimes and fraud. The incidence of cybercrimes in the country went up significantly in
2015 where number of cases booked under the cybercrime category rose by 20.5%. This reiterates the need of an
effective cyber security policy to thwart cyber threats.
What is cybercrime?
Cybercrime is defined as a crime in which a computer is the object of the crime (hacking, phishing,
spamming) or is used as a tool to commit an offense (child pornography, hate crimes).
Cybercriminals may use computer technology to access personal information, business trade secrets, military
data or use the Internet for exploitive or malicious purposes.
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Criminals who perform these illegal activities are often referred to as hackers.
Today, criminals and rogue nations are increasingly attacking the technology assets of individuals, organizations
and governments, stealing and selling valuable information, and in an alarming trend, holding data for ransom.
Some examples are:
California hospitals technology systems and encrypted patient-care data was hacked. A ransom of over $5.5
million was demanded.
A leading e-commerce company recently discovered that a loophole in its payment gateway gave the hackers
opportunity to procure goods at 100% discount coupons.
A hacker sent spurious email from CEOs mailbox to the finance department asking it to transfer funds to a
fictitious vendors bank account.
Thus, new facets of cyber threats are emerging with advancing technology and new business models.
Use of internet
The government and enterprises have now increased internet usage for critical applications like operating
power grids and smart cities, conducting banking transactions etc.
However, these increased usage has brought forward cybersecurity concerns.
Cyber terrorism
Currently, state sponsored cyber terrorism, non-state terrorist groups, corporate and individual hackvists are
engaged in different crimes, espionage, theft of patents, and other information assets.
Nations such as Russia, China, Iran, North Korea are reported to use cyber capabilities as an effective
geostrategic tool for espionage, propaganda attacks, to target critical infrastructure systems, for intelligence
gathering and also to support political and military objectives.
Non-state terrorist groups deploy internet to organise, recruit, spread propaganda, collect intelligence, raise
funds, and coordinate operations. Example: ISIS is found targeting sensitive information about US military
personnel to spur lone-wolf attacks for theft, extortion, and drug trafficking. It is also spreading its vicious
propaganda through social networking sites which attract a larger number of people, mainly youth.
India Inc.s cyber security preparedness
Unfortunately, the Indian industries also dont have robust response to cyber risks.
India ranks third globally as a source of malicious activities and its enterprises are the sixth-most targeted by
cybercriminals.
There have been investments in high-end security products, cyber-breach detection capabilities in most large
organizations, yet they remain largely ineffective.
Their crisis-response strategies also appears to be inadequate. In early 2016, EY conducted a cyber-attack
simulation for 79 CEOs where they were asked how they would react when informed about their customer
data being compromised.
The responses ranged from contacting the chief information security officer to the chief marketing officer to
the corporate communications officer. However, most executives did not have concrete plan with regards to
cybercrime related to ransom demands.
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Thus, the organisations have to protect their intellectual property, customer, vendor and employee data, strategic
plans, financial statements, legal positions etc. which are at risk due to cyber threat and enhance their cyber
resilience.
Way forward
Need for awareness and skilled manpower
Now, the attacks cannot be limited just by installing anti-virus security. It has become far more complex.
Cybercrimes include techniques like botnets (use of network of robots that spread malware), zombie
computers (a computer that has been hacked into and is used to launch malicious attacks), app
exploitation, and detecting problems in newer programming languages like Python, among others.
Hence, now the cyber security is not only about protecting but also detecting and responding.
Currently, there is a need for three lakh professionals but the availability is around 30,000. Hence, there has
to be a dedicated cadre of cyber security professionals and experts.
Need of stronger national cyber security policy

Cyber-attacks are not a matter of if but when in these times.
Indias existing cyber security policy of 2013 must be reviewed in the light of emerging cyber threats.
Indias cyber security strategy must be able to protect multiple digital intrusions at all levels: military
and corporate espionage, electronic attacks disrupting critical infrastructure, ICT and IoT systems and data
privacy, integrity and security of its citizens.
A national cyber security agency should be set up to develop appropriate policy, strategy and action plan,
linking key ministries.
Dissemination of best security practices, intelligence sharing, intrusion reporting and effective coordination
and partnership between private, corporate, government and international level organisations like the UN, the
European Union and Indias allies.
Signing of MoUs on cyber defence with allies and international organisations may become unavoidable as
cyber threats defy state borders and organisational boundaries.
Thus, cyberspace is increasingly becoming a key domain besides air, sea and land warfare. The
nations top strategic, business, and technical leadership, both from government and private must work in
tandem bolstering partnerships between central, States, and the local governments.
Adequate funding for ICT and IoT security is inevitable for strategic research and development along with
enhancing Indias technological and investigative capabilities.
What are the cyber challenges faced by government and organisations? Discuss
Dependence on internet is necessity but also a threat. Critically analyse the statement with respect to Indias
cyber security and cyber threat preparedness.
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Digitised records and patient rights
ENVIRONMENT

Environment and Ecology, Bio diversity Conservation, environmental pollution and
degradation, environmental impact assessment.
Air pollution levels up by 8%: U.N. report

Concerns:
The United Nations Environment Assembly (UNEA) meeting at Nairobi noted that air pollution has increased
by 8 per cent and progress and policies on air quality fall short of what is needed to save millions of lives
each year.
At least 600,000 deaths being caused annually in India by fine particulate matter pollution in the air data
released by the World Health Organisation
So many deaths could be attributed to particulate matter 2.5 micrometres or less in size
Residents in many urban areas are forced to breathe unhealthy levels of particulates, and the smallest of
these PM10 and less can penetrate and get lodged deep in the lungs
A recent study by Yale and Columbia University ranked India 126th out of 132 countries surveyed on
environmental performance and worst air pollution; far below all BRICS nations
WHO Global Burden of Disease study has also been working to estimate pollution-linked health impacts, such as
stroke and ischaemic heart disease, acute lower respiratory infection and chronic obstructive pulmonary disease.
Causes:
Data on fine particulates in India show that in several locations the pollutants come from burning of biomass, such
as coal, fuel wood, farm litter and cow dung cakes. In highly built-up areas, construction debris, road dust and
vehicular exhaust add to the problem.
SO2 and NO2:
Coal-powered thermal power plants are the leading sources of SO2 and NO2 in the environment.
Growing number of cars:
Low standards for vehicle emission
Diesel vehicles are responsible for 56% of all PM emissions and 70% of all Nitrogen Oxides (NOx)
emissions
Content of sulphur in fuel makes it dirtier and lowers the efficiency of catalytic convertors, which control
emissions in automobiles.
Indoor Air Pollution:
As per Census 2011, 87% of rural households and 26% of urban households depend on biomass for cooking.
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Burning of biomass is a leading cause of indoor air pollution and is responsible for respiratory and pulmonary
health issues in approximately 400 million Indians.
Usage of Kerosene:
The proportion of rural households using kerosene as a primary source of energy for lighting is almost 30%.
Kerosene lanterns used in rural areas are a primary source of emission of black carbon soot and cause
significant health impact, particularly in the case of women and children.
Impacts
Cost of Air pollution- 3% of the GDP: A World Bank report highlighted that the annual cost of air pollution, specifically
pollution from particulate matter (burning of fossil fuels): 3% of the GDP of the country:
Outdoor air pollution accounting 1.7% and
Indoor air pollution for 1.3%
The report observed that a 30% reduction in particulate emissions by 2030 would save India $105 billion in healthrelated costs and a 10% reduction would save $24 billion.
Leading cause of Death: The Global Burden of Disease Report has ranked outdoor air pollution as the fifth leading
cause of death in India and indoor air pollution as the third leading cause.
Agricultural productivity: A recent research study Recent climate and air pollution impacts on Indian agriculture
suggested that Short-Lived Climate Pollutants (SLCPs) were having an adverse impact of agricultural productivity of
India.
Initiatives & Policy Measures:
1. Steps to curb vehicular emission
Emission norms and fuel regulation standards: BS IV norms are applicable in 34 cities whereas BS III
norms are applicable in the rest of the country. Adaptation of Euro VI norms to Bharat Stage VI.
Saumitra Chaudhari Committee:Government should introduce the Bharat Stage V norms across the
country by 2020.
Promotion of cleaner technologies and alternate sources of energy to run vehicles:
National Mission for Electricity Mobility (NMEM):To enhance penetration of efficient and
environmentally friendly hybrid and electric vehicles;
GoI: 1,000 crores for the Plan in 2015 to decrease CO2 emissions by 1.2- 1.5% in 2020
Promotion of usage of Biofuels: To substitute petrol and diesel in automobiles
target: 20% blending of bio-fuels such as bio-diesel and bio-ethanol by 2017 is proposed;
Ethanol run bus launched in Nagpur under Green Bus Project
Encouraging greater use of public transport: To prioritize the use of public transport running on cleaner
fuel and technology and developing a people-centric sustainable multi-modal urban transport network, taking
into consideration the unique characteristics in cities.
2. Reducing the dependence on biomass burning
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National Biomass Cookstoves Programme: Promote the use of improved cookstoves resulting in:
Reduced emissions,
Reduced fuel consumption and
Cleaner cooking energy solutions
Renewable Energy:
Achieve 175,000 MW of green energy by 2022 including
1 lakh MW of solar power,
60,000 MW of wind energy,
10,000 MW of biomass and
5000 MW of small hydro projects
Solar Power:
An enabling policy framework for manufacturing solar components and setting up power plants should
be created
Off-grid applications should be promoted and steps be taken to bring tariff to grid parity level
Currently,
Government has revised the target to 100 GW by 2022.
Gandhinagar Solar Photovoltaic Rooftop Programme
From carbon subsidization to carbon taxation:
Cess on coal has been doubled which will boost renewable energy financing
Cess is collected as National Clean Energy Fund and is disbursed for renewable energy-based initiatives and
power projects.
National Air Quality Index: One Color, One Number and One Description.
Measurement index consisting of 8 parameters, which would disseminate information in a simple and effective
manner (Real time; 8 pollutants)
Conclusion:
Comprehensive measurement of PM2.5 is not yet being done and the linkages between pollution, disease and
deaths need further study.
A neglected aspect of urban air pollution control is the virtual discarding of the Construction and Demolition
Waste Management Rules, notified to sustainably manage debris that is dumped in the cities, creating severe
particulate pollution. The Environment Ministry has highlighted the role that debris can play as a resource.
Municipal and government contracts are, under the rules, required to utilise up to 20 per cent materials made from
construction and demolition waste, and local authorities must place containers to hold debris. This must be
implemented without delay.
Providing cleaner fuels and scientifically designed cook stoves to those who have no option but to burn biomass,
would have a big impact on reducing particulate matter in the northern and eastern States, which are the worst-hit
during winter, when biomass is also used for heating.
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Greening the cities could be made a mission, involving civil society, with a focus on landscaping open spaces and
paving all public areas to reduce dust. These measures can result in lower PM10 and PM2.5 levels.
Connecting the Dots:
Discuss the role of States in promoting Renewable Energy in India.
Can India tap solar power and transform it into a crucial component of Indias power portfolio? Discuss
various initiatives taken by the government and suggest a way ahead for better enhancement of Indias
prospects.
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IASbabas Daily Current Affairs 4th October, 2016 | IASbaba
IASbabas Daily Current Affairs 4th October, 2016

iasbaba.com/2016/10/iasbabas-daily-current-affairs-4th-october-2016/
IAS baba
04/10/2016
Archives
ENVIRONMENT/ S & T

life
The battle over Bt cotton (Part I: Understanding the Basics)
What is Bt?
Bacillus thuringiensis (Bt) is a spore forming bacterium that produces crystals protein (cry proteins), which are
toxic to many species of insects.
Where is Bt found?
Bt can be found almost everywhere in the world. Surveys have indicated that Bt is distributed in the soil
sparsely but frequently worldwide.
Bt has been found in all types of terrain, including beaches, desert, and tundra habitats.
How many kinds of Bt are there?
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There are thousands of different Bt strains, producing over 200 cry proteins that are active against an
extensive range of insects and some other invertebrates.
Where is Bt used?
Bt is largely used in agriculture, especially organic farming. Bt is also used in urban aerial spraying programs,
and in transgenic crops.
What is Genetically Modified Organisms (GMO)?
When a gene from one organism is purposely moved to improve or change another organism in a laboratory,
the result is a genetically modified organism (GMO). It is also sometimes called transgenic for transfer of
genes.
Selective breeding technique and Transgenic technique:
There are different ways of moving genes to produce desirable traits. For both plants and animals, one of the
more traditional ways is through selective breeding.
For example, a plant with a desired trait is chosen and bred to produce more plants with the desirable trait.
More recently with the advancement of technology is another technique. This technique is applied in the
laboratory where genes that express the desired trait is physically moved or added to a new plant to enhance
the trait in that plant. Plants produced with this technology are transgenic.
Often, this process is performed on crops to produce insect or herbicide resistant plants, they are referred to
as Genetically Modified Crops (GM crops).
Most GM crops grown today have been developed to resist certain insect pests. There are GM plants being
developed today to produce specific vitamins, resist plant viruses and even produce products for medical uses.
What is Bt cotton?
Bt cotton is a genetically modified organism (GMO) cotton variety, which produces an insecticide to bollworm. It is
produced by Monsanto.
Results of insect infestation on Bt (right) and non-Bt (left) cotton bolls.
Pic link: http://www.bt.ucsd.edu/assets/usda_cotton.jpg

Bt cotton was the first genetically modified (GM) crop technology to be commercialised in India.
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Three Bt cotton hybrids, developed by Mahyco Monsanto Biotech (MMB) joint venture, were approved by Indian
authorities in early 2002.
Bt cotton controversy
1. No data on Bt Cottons effectiveness under practical farming conditions
NGOs have questioned the technologys effectiveness
Analysis of several years of Indian field trial data demonstrated that Bt technology can significantly reduce
pesticide applications and increase effective yields under experimental conditions. This is in line with research
from other countries.
However, independent studies under practical farming conditions are not available in India and therefore, it is
difficult to interpret the statements made by different interest groups.
MMB claims sizeable benefits for Bt adopters
Anti-biotechnology activists have declared the technology a complete failure
This controversy has become one of the focal points in the global debate on GM crops.
2. Monsanto vs Indian Farmers
Seed is the basis of agriculture; the means of production and the basis of farmers livelihoods.
In less than two decades, cotton seed has been snatched from the hands of Indian farmers by Monsanto,
displacing local varieties, introducing GMO Bt cotton seeds and coercing extravagant royalties from farmers.
Since Monsantos entry into India in 1998, the price of cotton seeds has increased by almost 80,000% (from
5 9/KG to 1600 for 450 gms). 300,000 Indian farmers have committed suicide, trapped in vicious
cycles of debt and crop failures, 84% of these suicides are attributed directly to Monsantos Bt cotton.
3. Monsanto, Indian farmers and the Govt of India
There are 3 issues related to the state of seed and the current conflicts related to Monsanto, Indian farmers and the
Govt of India.
First is the farmers rights to reliable and affordable seed and with it the duty of the government to protect
farmers right to livelihood and right to life. It is the governments duty under Art 21 of the constitution to
protect the life of all its citizens.
Second is the issue of IPRs, patents, royalty, technology fees in the context of false claims and a failing
technology, and the duty of Government to act to revoke a patent according to Article 64 and Article 66 of the
Indian Patent Act. There is a show cause notice served to Monsanto by the Central Government regarding
the patent.
The third is the issue of monopoly on seed. The Government has a duty to prevent monopolies being
established. The issue of monopoly is before the Competition Commission of India which has stated that
Monsanto has violated Competition laws and there is Prima Facie evidence of monopoly.
(In tomorrows DNA, we shall discuss the controversy surrounding Monsanto and patent protection.)
Write a brief note on genetically modified crops and how they differ from hybrid crops. What are the possible
challenges and benefits of GM crops?
What do you understand by the term Bt? Discuss the controversy surrounding Bt Cotton in India.
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NATIONAL

Welfare schemes for vulnerable sections of the population by the Centre and States
and the performance of these schemes; mechanisms, laws, institutions
Important aspects of governance, transparency and accountability, e-governanceapplications, models, successes, limitations, and potential; citizens charters,
transparency & accountability and institutional and other measures.
MGNREGA MIS- Need to achieve more

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a pioneering livelihood security
programme. Along with it, it is also a great example of proactive disclosure of information through its Management
Information System (MIS).
What is MGNREGA MIS?
A web enabled MIS www.nrega.nic.in has been developed for NREGA to make its data transparent and available in
the public domain to be equally accessed by all. It monitors:
Workers entitlement data and documents such as Registration, job cards, muster rolls.
Work selection and execution data including, shelf of approved and sanctioned works, work estimates, works
under execution, measurement.
Employment demanded and provided.
Financial indicators such as funds available, funds used, and the disaggregated structure of fund utilizations
to assess the amount paid as wages, materials and administrative expenses.
Importance of MGNREGA MIS
It is the first transaction-based real-time system for any public works programme in the country that is
available in the public domain as there is digitisation of all the processes in MGNREGA.
This enables any citizen to monitor the implementation of the programme thereby charting a new paradigm of
transparency since the enactment of the Right to Information (RTI) Act.
Shortcomings of MGNREGA MIS
The scale of information available is no small achievement. Individual worker details from around 2.5 lakh gram
panchayats are available in the MGNREGA MIS. However, there are some shortcomings which need to be
addressed.
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Limited access
MIS is accessible only from 6 a.m. to 6 p.m. IST. This is a huge impediment for collaborative work across time
zones.
No data dictionary
A data dictionary is a repository of all the names of variables/columns used in various reports, containing a
brief explanation of its meanings.
Such dictionary is important as it allows the citizens to understand the online reports they wish to access.
Unless somebody has spent a lot of time in rural areas, it is difficult to comprehend the details of many
reports.
Same meaning, different names
Nomenclature of coloumn names are not uniform.
For example, Payment Date in the report of weekly works (Mustroll Report) is known as the Second
Signatory Date in a report titled FTO Second Signatory. Also, Payment Date is a misnomer as it does not
refer to the date on which a worker gets paid. Payment date is the date on which the wages is scheduled to
be paid.
Missing linkages
Worker-centric links in the data structure are missing.
For example, every household that does MGNREGA work has a unique job card number. This number is
crucial to get work.
Upon completion of a work week, a Funds Transfer Order (FTO) is generated containing the details of each
job card holders earned wages.
On the MIS, there is no clear link between these two crucial pieces. As such it becomes difficult to follow the
trail of each job card holder from the time of work demanded to getting the wages.
Technology should not lessen accountability
Digitisation and computerisation is a welcome move but it has been observed that accountability is being
shifted by officials.
It should be known that an information system doesnt end up controlling the legal rights.
There are several situations when a written request for work by a worker is not entered in the MIS till funds
for work allocation are made available from the Centre. This is illegal as the Act mandates provision of work
within a stipulated time of requesting for it.
Similarly, the generation of the FTO is withheld till funds for wage payments are released. There are other
instances when the FTO is not generated if a worker fails to furnish his or her Aadhaar number.
Some are harder to locate as there is no paper trail or stated intention but realised only retrospectively once
the workers are affected.
Hence, many such examples illustrate how the IT infrastructure becomes a tool prioritising administrative
needs as opposed to being a programme enabler.
In this regard, the phrase code is law should be recalled where code, as in software, and code, as in law,
can both be instruments of social control.
Technological architecture can also be used to perpetuate falsehoods. For instance, consider the flawed
mechanism of the calculation of delay compensation when wages are not paid on time.
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Ideally, the compensation should be calculated from the 16th day of completion of a work week till the day on
which the workers actually receive their wages. However, the compensation is computed based on the
payment date, which is not the date on which the wages get credited into the workers accounts.
The difference of the two calculation methods run into crores of rupees that rightfully belong to the workers.
While the automated calculation is a progressive measure, its basis must be correct and transparent.
Thus, even with the flawed calculation no compensation has been paid shows that technology can be a
strong aid but not a replacement for accountability.
Conclusion
MIS is a powerful mechanism to have an evidence-based discourse for monitoring basic services.
However, a governance framework for the MIS needs to be put in place that lays out the minimum standards
and accountability of the Ministry managing the system.
Such a framework must be built in consultation with all concerned parties and should follow the provisions of
the law (both MGNREGA and RTI).
The system design choices should reflect the values of the worker-centric programme and hence principles
need to be followed for compassionate design.
MIS avails transparency but accountability is equally important. With regards to MGNREGA, examine the
importance of transparency as well as accountability with suitable examples.
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ENVIRONMENT/ S & T

life
Note: (In previous DNA article, we had posted that we shall discuss the controversy surrounding
Monsanto and patent protection. However we found that the article had very less content relevant to UPSC
and hence we have skipped the same. So, no Part II edition of it.)
The organic farming conundrum
What is organic farming?

Organic farming system in India is not new and is being followed from ancient time. It is a method of farming system
which primarily aimed at cultivating the land and raising crops in such a way, as to keep the soil alive and in
good health by use of organic wastes (crop, animal and farm wastes, aquatic wastes) and other biological
materials along with beneficial microbes (biofertilizers) to release nutrients to crops for increased sustainable
production in an eco friendly pollution free environment.
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As per the definition of the United States Department of Agriculture (USDA) study team on organic farming organic
farming is a system which avoids or largely excludes the use of synthetic inputs (such as fertilizers, pesticides,
hormones, feed additives etc) and to the maximum extent feasible rely upon crop rotations, crop residues, animal
manures, off-farm organic waste, mineral grade rock additives and biological system of nutrient mobilization and
plant protection.
FAO suggested that Organic agriculture is a unique production management system which promotes and
enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity, and this is
accomplished by using on-farm agronomic, biological and mechanical methods in exclusion of all synthetic off-farm
inputs.
Picture credit: http://agritech.tnau.ac.in/org_farm/INTRODUCTION.jpg

Need of organic farming
With the increase in population our compulsion would be not only to stabilize agricultural production but to
increase it further in sustainable manner.
The scientists have realized that the Green Revolution with high input use has reached a plateau and is now
sustained with diminishing return of falling dividends. Thus, a natural balance needs to be maintained at all
cost for existence of life and property.
The obvious choice for that would be more relevant in the present era, when these agrochemicals which are
produced from fossil fuel and are not renewable and are diminishing in availability. It may also cost heavily on
our foreign exchange in future.
The key characteristics of organic farming include
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Protecting the long term fertility of soils by maintaining organic matter levels, encouraging soil biological
activity, and careful mechanical intervention
Providing crop nutrients indirectly using relatively insoluble nutrient sources which are made available to the
plant by the action of soil micro-organisms
Nitrogen self-sufficiency through the use of legumes and biological nitrogen fixation, as well as effective
recycling of organic materials including crop residues and livestock manures
Weed, disease and pest control relying primarily on crop rotations, natural predators, diversity, organic
manuring, resistant varieties and limited (preferably minimal) thermal, biological and chemical intervention
The extensive management of livestock, paying full regard to their evolutionary adaptations, behavioural
needs and animal welfare issues with respect to nutrition, housing, health, breeding and rearing
Careful attention to the impact of the farming system on the wider environment and the conservation of
wildlife and natural habitats
Organic farming promises a lot:

It can reduce the detrimental effects of conventional farming while cutting input costs,
Fetch a premium price on produce,
Improve soil fertility,
Promote efficient use of water resources, and
Provide safe food for consumers
However, some studies show that the realities on the ground present a stark contrast to this Utopian picture.
Case study:
Many poor farmers in India have recently taken the leap from conventional to organic farming as inputs for
organic farming are cheaper and with the anticipation of premium returns and healthy farms.
In this transition, synthetic chemical fertilizers are replaced with natural and bio-materials, such as neem cake
and cow dung, and chemical pesticides are replaced with neem oil and bio- pesticides. All this is done to
compete in the global organic market, which is worth $64 billion.
However, most of the farmers alleged that their yields dropped to half and also net income reduced from
what they made before making the switch.
Many farmers are yet to claim the premium promised on their products as they do not fall in the organic
category yet.
Disillusioned farmers today ask a pertinent question: Of what use is organic farming and its claim of long-term
sustainability to them, when they are unable to bring home two square meals a day today?
Concerns:
Studies have shown that
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Organic farming is not an economically viable option for the smallholder farmers who make up 80 per cent of
the total number of farmers today in India. Pushing these methods on such farmers can actually do much
more harm than good.
Farmers find the organic farming activity far less profitable due to decreased yields, and the lost income
that cancels out the savings from cheaper inputs.
In addition, after detoxing the soil, which takes up to three years, farmers have to shell out the equivalent of
around $450-600 a year to obtain organic certification.
This is a sizeable investment for poor farmers in India who aspire to take home something like $100-120 a
month. In this transition period, farmers are unable to sell produce at a premium because it is not yet
completely organic by global standards.
Even if farmers were able to regain their initial investments, organic farmers are dependent on niche urban
markets and export markets. This comes with additional complications, since accessing such markets
typically requires contracts with large companies. This means the small organic farmer is not reaching those
who pay more for organic products.
Organics industry is still young and not well-regulated in India. Organic fertilizers are difficult to obtain on a
large scale in India, and farmers often use farmyard manure, which may contain toxic chemicals and heavy
metals, thus does not promises the safe and healthy food.
The way ahead:

If small organic farmers has to reach those who pay more for organic products, our country needs collective
farming to bring economies of scale, needs financial support for small farmers in the initial years, and a better
market for the produce.
The government recently started offering support for the organic certification process when farmers group
together, which is a good start. However, we also need to ensure farmers organise in a way they can enter
into contracts and demand a fair price from global companies.
There is a need to educate farmers about eco-friendly food that will allow the use of limited and specified
agrochemicals within the safe levels specified by public health organisations.
In addition, the encouragement that the government gives for organic farming should be supported by
financial incentives during the first three years and market connections for small farmers.
Instead of pushing poor farmers to risk it all by taking up organic farming, it is imperative that we strike a middle
path to ease this transition period for farmers. We all want a world in which our farmers thrive while taking care of
our environment and health. But we must also consider the timing and how we introduce new solutions. Only then
can we secure a future devoid of poverty, hunger and malnutrition.
What do you mean by Organic Farming? Discuss the key characteristics and future of Organic farming in
India.
What is Organic Farming? List some of its benefits as compared to the conventional farming method.
Discuss the various benefits and limitations of organic farming. Do you think that Organic Farming can totally
replace the conventional method of agriculture? Critically analyze.
NATIONAL
4/8
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TOPIC:
General Studies 1
Urbanization, their problems and their remedies.
General Studies 2
Governance Issues
General Studies 3
Conservation, environmental pollution and degradation
Disease free cities- Is it possible?

In news: With outbreak of Dengue and Chikungunya in National Capital Delhi, it poses a critical question if Indian
cities that are plagued by a plethora of communicable diseases of late like dengue, bird flu, typhoid, chikungunya
and swine flu will be able to become disease free?
Disease free city- Surat shows the way
In 1994, parts of Surat (Gujarat) were affected by pneumonic plague. Between September 20 to 25 1994,
suspected cases totalled 1,061 and thus created mass panic. This led to hospitals being overcrowded with
patients.
Surats diamond processing localities, a high-risk hotspot, were soon uninhabited. Around 25% of the
population was said to have fled the city, carrying the disease with them to Delhi, Mumbai, Nashik, and
Kolkata.
Due to open sewers, slums and soaking garbage and littered dead animals due to the floods, Surat was
described as a medieval horror show.
Plague as a blessing
But, this plague can be called a blessing for Surat as it is today one of the cleanest cities in India. It has now
turned into a public health leader by overhauling its trash collection and street cleaning processes and
enforcing proper hygiene in restaurants.
It has overhauled its slums, offering their residents paved streets and toilets.
It regularly conducts disease surveillance through 489 surveillance workers, testing more than 2.3 million
malaria breeding spots in 2014 while offering active diagnosis.
The municipal corporation has built up a large network of 41 urban health centres, supplemented by
mobile health clinics, over 500 private hospitals, and 1,300 teaching units.
Garbage collection has been given a strict timetable, with each sweeper allocated a specific area. Dustbins
have been installed and litterers are heavily penalised.
Surat now retains pride over its cleanliness as the cases of vector-borne diseases are rapidly declining.
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Unearthing the causes and managing the waste

When plague led to death of 1.3 million people in 1907, the colonial government remained focussed on
preventing cholera epidemics, ensuring military sanitation and preventing the outbreak from infecting the
bureaucracy.
However, instead of funding municipality-based sanitation through sewers, the government chose to intensify
manual scavenging.
Thus, any collection inefficiency was blamed on poverty-ridden scavengers and the same is continued even
today in our municipal institutions.
Post Independence, the Indian cities grew haphazardly mostly in unsanitary conditions, with outbreaks
mitigated by the widespread use of antibiotics and insecticides.
Sadly, mutual collaboration between the urban middle class and the hinterland has been disincentivised by
institutional apathy and unequal economic progress. During epidemic outbreaks, the sick and the
underprivileged have no recourse to satisfactory health-care systems.
Recently in May 2016, there were reports of bird flu in a poultry farm in Bidar district (Karnataka). The States
animal husbandry department swung into action and asked for culling of nearly 1.5 lakh birds in the farm.
Though the outbreaks have now lessened, such incidents are worrying as disease outbreak can create
debilitating consequences.
Managing the waste
Today 90% of the solid waste is directly dumped into landfills. But there remains little monitoring of
heavy metal concentration in municipal solid waste.
Right from the source (household), waste should be segregated as most of it is biodegradable. Thus,
composting should be encouraged which would reduce landfill burden while increasing collection efficiency.
Also, biomethanation plants should be encouraged in all Tier 2 and 3 cities to process vegetable and mixed
waste.
Starting on wrong foot- Inefficient waste collection

Most of solid waste collection is done in ad hoc manner as routes are decided mostly by local sweepers and
drivers.
Also, there is inadequate scheduling of collection of waste from different sectors across urban areas.
Later, waste is mostly dumped in an unsanitary and uncontrolled manner which is then covered with soil and
buried by machinery.
Thus, waste management is not carried out properly because there lacks proper funding, human resource
and technology.
Consider this Chandigarh, a well-planned city, generates an average of 370 tonnes of solid waste on a
daily basis. But, only 7-8% of its solid waste management budget is allocated for garbage collection. Hence,
the collection efficiency varies from 20% in slums and surrounding villages compared to 70% from registered
households.
Many sweepers and garbage collectors suffer from parasitic diseases like diarrhoea, jaundice and trachoma.
These workers are unaware of their occupational health hazards as there are limited mechanical equipment
to help minimise their direct contact with solid waste.
Conclusion
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Now, Chandigarh is focussing on developing an integrated municipal solid waste management process.
For this, it will conduct segregation and storage of waste at source while promoting recycling, composting,
and generation of electricity from municipal waste.
Surat has already established itself has public health leader post the plague.
Thus, Indian cities have to now build an effective waste management system which is not difficult.
Systematic thinking is needed which involves optimally available collection manpower, well designed
community bins placed throughout the city, well maintained collection vehicles and increasing waste
treatment and disposal facilities will lead to better waste management.
Public participation, institutional funding, sturdy policy and legal framework, political will combined with active
surveillance and institutional support will make the cities disease free.
Smart cities is not only about incorporating technology but also sustainable city management having robust
solid waste management as cleanliness of the city will make it attractive and in real sense smart.
You may refer to Revised Solid Waste Management Rules here.
What is solid waste management? Examine its importance in making cities disease free.
Smart cities is not only about wifi, roads and infrastructure but also cleanliness. In the light of the above
sentence, analyse how smart city status can be truly achieved?
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NATIONAL
TOPIC:
General Studies 2
Welfare schemes for vulnerable sections of the population by the Centre and States and the
performance of these schemes; mechanisms, laws, institutions and bodies constituted for the
protection and betterment of these vulnerable sections
General Studies 3
Indian Economy and issues relating to planning, mobilization of resources, growth, development
and employment.
Major crops cropping patterns in various parts of the country, different types of irrigation and
irrigation systems storage, transport and marketing of agricultural produce and issues and related
constraints
Partnership approach to double the farm income

In an unprecedented initiative, the government has set an ambitious target of doubling farmers income. However,
this needs a new redefined approach of fortifying partnerships amongst stakeholders to make this target a reality.
To boost the agricultural sector, the government has set goal of doubling farmers income by 2022.
To achieve it, it has unveiled various strategies like focus on irrigation for quality inputs, investments in
warehousing and cold chains, promotion of food processing and crop insurance schemes, among
others.
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However, the basic need is to transform the agriculture sector from production-driven system to a
demand-driven food value chain.
Making the transformation possible
For such transformational impact, there will have to be new approaches, innovations, and increasing
alignment and collaboration with all stakeholders in the food system.
Integrated value chains that connect farm to plate, competitive markets that provide better prices to
farmers and an enabling environment that supports innovation and action will be required.
However, this will require collaboration between all the stakeholders government, private sector or civil
society. None of them can work solitarily as newer realities like climate change and increasing pressure on
land and water resources will have to be tackled by forging partnerships and consensus.
So, there should be combining of competencies of diverse organizations and stakeholders to create
better alignment through partnership platforms which can generate much greater impact.
It includes leveraging of greater investments, development of new innovative collaboration models that
combine knowledge and resources of diverse stakeholders and sharing of best practices, risks and
mutual accountability for results.
Role model States

Such partnerships are being developed in states like Andhra Pradesh, Karnataka and Maharashtra.
These state-level platforms bring together government + private sector + farmer organizations + society
to create a shared vision and jointly develop solutions for integrated value chain projects that will provide
more opportunities for farmers.
Currently, more than 20 organizations are engaged in these state partnerships ranging across the value
chain from input companies to processors and retailers and from global multinational corporations to
local small and medium enterprises and farmer producer organizations.
Maharashtra
Maharashtra initiated this partnership model in 2012 under GoIs public-private partnership for integrated
agriculture development (PPPIAD) This programme aimed at developing an integrated value chain for
specific crops.
It has been observed that within three years, this initiative had reached half-a-million farmers and improved
farmer income ranging from 10-30%. Now, the goal of reaching 2.5 million farmers by 2020 has been set.
Andhra Pradesh
In Andhra Pradesh, there was a launch of a partnership platform which focused on achieving double-digit
inclusive agriculture growth in the state.
The state has identified 25 growth sectors covering agriculture, horticulture, animal husbandry, and fisheries.
Within few months, more than $175 million in private sector commitments to support several value chain
projects has been mobilized.
Karnataka
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Here, the government launched the public-private partnership for integrated horticulture development
(PPPIHD) in December 2015.
It was to improve horticulture value chains through value addition, technology and marketing solutions.
It has been less than a year, yet five projects are already underway led by both global and local private sector
companies.
Thus, each state level partnerships follows a unique model but they share similar guiding principles which have
been developed and validated by countries around the world. These principles are:
Alignment with the states goals and priorities for the sector.
Market-driven with projects led by the private sector and rooted in viable business models
Multi-stakeholders with open and inclusive engagement that includes all relevant stakeholders
Holistic, integrating full value chains that benefit all actors in the food system
Globally supported by an international network providing solidarity, connection and resources.
Conclusion
These state level partnerships hold great potential for application in other states of India too. Also, many
other states have indicated interest in launching similar initiatives.
The key to such strong partnership lies in strong leadership and co-creation with the
Government setting the vision and enabling policy framework.
The private sector helping to deliver on that vision through scalable, inclusive market-based activity.
Key stakeholders such as farmer organizations, civil society and international organizations
combining their resources and expertise.
Such strong leadership from multiple stakeholders can create the conditions needed for unlocking the
entrepreneurship capability of small farmers and ultimately boosting their income.
Hence, for a bigger picture to transform the agriculture sector, the agriculture sector needs to move from a
production-driven system to a demand-driven food value chain that increasingly connects the consumer to
the producers.
Doubling the farmers income is a goal whose onus lies on collaborative approach between its stakeholders.
Examine
Farmers have to increase their scope of income and not only rely on farm produce. Do you think it is
possible? Discuss.
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INTERNATIONAL
3/7
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Bilateral, regional and global groupings and agreements involving India and/or
affecting Indias interests.
Effect of policies and politics of developed and developing countries on Indias
interests, Indian diaspora.
Important International institutions, agencies and fora- their structure, mandate.
Farewell to NAM
In news: In a significant move, Indian PM did not attend 17th Non Aligned Movement (NAM) summit which was held
in Venezuela recently.
The only other time when an Indian Prime Minister stayed home was in 1979, when the historic Havana summit took
place. Prime Minister Charan Singhs absence, however, had nothing to do with NAM; this time, the absence of
Prime Minister Narendra Modi had a political message. His absence was deliberate as he did not find NAM to be
important enough.
Flawed assumptions about NAM
Non-alignment has not been in the vocabulary of Prime Minister Modi.
He has been on a quest for selective alignments to suit his needs for Indias development and
security.
His advisers have now begun to rationalise Indias distancing from NAM. One argument is that NAM did not
have any binding principles and that it was a marriage of convenience (arranged for practical, financial, or
political reasons) among disparate countries.
Right from the beginning, the word non-alignment conveyed the wrong notion that it was not aligning with
the power blocs and that the be-all and end-all of non-alignment was to remain unaligned.
But the essence of non-alignment was freedom of judgment and action and it remained valid, whether
there was one bloc or two.
Seen in that context, non-military alliances can also be within the ambit of non-alignment, which was
subsequently characterised as strategic autonomy. In other words, India does not have to denounce nonalignment to follow its present foreign policy.
Why NAM is failing?

The traditional foreign policy approach of non-alignment was a central component of Indian identity in global
politics.
However, since independence, India has been in pursuit of strategic autonomy. It has led to semi-alliances
shaped under the cover of non-alignment and regional dynamics.
NAM countries did not come to our help on any of the critical occasions when India needed solidarity, such as
the Chinese aggression in 1962 or the Bangladesh war in 1971.
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Even in the latest struggle against terror, NAM has not come to assist India in any way.
But the whole philosophy of NAM is that it remains united on larger global issues, even if does not side
with a member on a specific issue.
India itself has followed this approach, whenever the members had problems with others either inside or
outside the movement.
NAM positions have always been the reflection of the lowest common denominator in any given situation.
Does NAM has no ideal/ideology?
That NAM has no ideal or ideology as a glue is a wrong assumption. Though the criteria for NAM
membership are general, anti-colonialism, anti-imperialism and anti-racism were essential attributes of
NAM countries.
There was a consensus on nuclear disarmament also till India broke ranks by keeping out of the NonProliferation Treaty.
The diversity reflected in both Singapore and Cuba being NAM members has been its strength. Therefore,
Egypt signing the Camp David Accords with Israel in 1978 or India signing the Treaty of Peace,
Friendship and Cooperation with the Soviet Union in 1971 did not result in any disruption of
membership.
Benefits of NAM
The golden age in Indias foreign policy was in the first 15 years after Independence, when NAM provided a
constituency for India because of our non-violent victory over the British and the leadership it provided to
the newly independent countries.
India led the NAM effort to resolve the Iran-Iraq dispute.
As expected, political issues continued to engage NAM and we benefitted from its activism occasionally.
In fact, it was through NAM that we operated to counter the efforts to expand the UN Security Council by
including just Germany and Japan as permanent members. NAM submitted its own proposal and
ensured that no quick fix was permitted.
NAM is particularly important in elections at the UN, including the possible identification of new permanent
members of the Security Council.
No NAM country may agree to isolate Pakistan, but the NAM forum will be an effective instrument to project
our anti-terrorist sentiments.
Indias current foreign policy- a shift from past
Why such shift?
India seeks to balancethe benefits and risks of an increasingly assertive neighbour (China) and a network of
alliances with like-minded countries.
Chinas rise and assertiveness as a regional and global power and the simultaneous rise of middle powers in
the region mean that this balancing act is increasing in both complexity and importance, simultaneously.
Chinas growth presents great opportunities for positive engagement, but territorial disputes and a forward
policyin the region raise concerns for India, particularly in the Indian Ocean and with Pakistan.
Forward policy= a foreign policy doctrine applicable to territorial disputes where emphasis is placed on
securing control of disputed areas by invasion and annexation or creating a buffer state.
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The region itself is riddled with rivalries; a desire to balance China may push states together, while other
issues divide them. The same applies on the global level as noted by the unpredictability in Sino-US relations.
Conclusion:
The decision to say farewell to NAM is very much in keeping with the new transactional nature of the foreign policy
we are developing. NAM was a part of our larger vision for the world, but today it is seen as inconsequential to our
present preoccupations. This transformation will not be lost on the world community.
Is a shift in Indias foreign policy approach with respect to non-alignment significant? Critically analyse
Indias non-alignment policy gave it an independent foreign policy. With multi-alignment, Indias strategic and
autonomous foreign policy faces threat. Do you agree? Examine.
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IAS baba
09/10/2016
Archives
NATIONAL
TOPIC:
General Studies 2
Development processes and the development industry
Important aspects of governance
General Studies 3
and employment.
Inclusive growth and issues arising from it.
Effects of liberalization on the economy, changes in industrial policy and their effects on industrial
growth.
Make in India should not be by Government of India

Make In India on track?
High investments are inflowing in India in technology-oriented industries such as telecom and over the top
(OTT) services which are dependent on telecom networks such as financial technology and e-commerce.
Recently, Rs 47,700 crore were infused by UK based Vodafone Plc. into its Indian arm. This indicates that
Indian markets are still much desired.
The manufacturing investments are also targeting Indian consumers who want to have technology as a daily
part of their lives. Chinese telecom giant Huawei will begin manufacturing smart phones in India in 2016. It is
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40th such manufacturing investment in India in past two years.

In addition, the ease of doing business rank has improved as well as parliamentary consensus on GST has
been achieved.
Such encouraging indications may tempt to presume that make in India is on track. But it may not be true.
Still in a transitional phase
Transition from agricultural economy to service economy has posed a challenge for many who see
industrialization as the only way to create jobs in India.
It is very important to relocate the mass employment from agriculture to manufacturing sector so that
economy can create jobs for the growing population. Service sector cannot absorb the agricultural population
directly. But manufacturing and industries can undertake the agrarian population for its various unskilled and
skilled (post training) jobs.
For proper Industrialisation, best-in-class infrastructure, cheap energy and a skilled workforce is required
which can be fulfilled in long run only. But the need is now.
For that, digital economy offers a way out. Productivity gains from automation and digitisation have helped
industrial growth in advanced countries over previous decades but its effects have not been fully realised in
India
Thus, digital economy can potentially mobilise millions of Indians which also constitutes large number of
informal workforce, bringing them within a more productive fold.
Hence, Indias biggest challenge has the potential to become its best opportunity- the large, young workforce
which is untrained now but can develop and imbibe skills to understand applied technology through early
exposure.
Government should be more of facilitator than operator

The digital economy has high potential in India than the advanced country counterparts because real income
growth in advanced countries requires sustained and fundamental innovation whereas India can harness
incremental innovation towards higher rates of growth (mostly owing to a favourable demographic).
However, there is more threat to Make in India from the government-run enterprise itself. It has been a
noted trend that successive governments have first created favourable conditions for investments and then
jeopardised them.
For example, the telecom industry is often cited as an example of successful liberalization. But, now it finds
itself at crossroads as the industry lacks bandwidth to deliver affordable data.
The reason is that it remained overly dependent on voice calls revenues (which are falling) despite enough
global evidence to show that data revenues are the future.
This situation can be attributed to policy inertia which is partly due to BSNL. For long policymakers have
hesitated from undertaking comprehensive reforms around key challenges such as Right of Way
regulations, hoping that BSNLs networks will find some solution.
However, BSNL has not been able to deliver quality goods- whether it is internet infrastructure or service
ethics. It reminds of the pre-liberalisation era. Thus, BSNL has not been a profit making and sustainable
enterprise but still it thrives on public money.
The concept of BharatNet brought forward harnessing of a well-designed ring network. Instead, now India
has to settle with optic fibre cables on electric poles which has a feeble infrastructural withstanding capacity
and more chances of data loss.
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In broadcasting, most of advanced countries have successful public broadcasters. However, in India, Prasar
Bharti has not been that successful. It has not readily given spectrum to private operators. This has led to
private broadcasting industry losing money due to high carriage cost.
Also, the private broadcasters have to restrict their lifeline advertising revenues by applying Mandatory
Sharing regulations on high value content such as sports broadcasts.
The result is that broadcasting investments have stopped over past decade despite progressive liberalization
of FDI caps.
Conclusion
The government should not be both regulators and competitors. It disrupts the neutrality aspect of
governance.
Of course it is difficult to not have government enterprises as there are public sentiments attached to it. But,
while public enterprises have succeeded, to an extent, in traditional industries, they are not optimized for the
new economy which requires constant innovation and high standards of service delivery.
Thus, the government should focus more on being a licensor, regulator and adjudicator and let the consumer
select their choice in the market where there is no constraints on capital or technology.
Governments role as a regulator and operator cannot go hand in hand. Critically analyse.
India is increasingly finding itself as an attractive investment destination. In such scenario, government has
an important role to play. But it has to maintain a thin line between facilitating and interfering. Do you agree?
Substantiate.
Name some of the statutory regulatory bodies, their mandates. If they were in news recently, give a brief of
account of the issue.
NATIONAL
TOPIC:
General Studies 1
Social empowerment
General Studies 2
performance of these schemes; mechanisms, laws, institutions and bodies constituted for the
protection and betterment of these vulnerable sections
General Studies 3
Land reforms in India
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Singur verdict: What it means?

In August 2016, SC invalidated the expropriation of land in Singur which was carried out by erstwhile Left Front
government in Bengal. It ordered that the acquired properties be returned to their original landowners.
What the judgement means?
The judgement highlighted the core issue that governments acquisition of land for the purported use by Tata
Motors Limited to construct a car factory was in violation of the procedural mandates of the Land Acquisition
Act, 1894.
Though today the colonial era law might stand repealed by new Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013 (LARR Act), it raises important
concerns about the extent of the states supposedly sovereign power to acquire property, and the nature of
what constitutes a public purpose permitting such taking.
Expropriation: Expropriation is the act of a government in taking privately owned property, ostensibly to be
used for purposes designed to benefit the overall public.
Working around the law

The 1984 land act had two forms of recognised expropriation
1. For public purpose for governmental use.
2. Forced transfer of land from private individuals to corporations for the latters commercial use.
In the case of acquisitions intended to benefit companies, a special procedure was prescribed in Part VII of
the Land Acquisition Act which incorporated additional safeguards to ensure that governments dont abuse
their avowed power of eminent domain.
If the government wanted to acquire land using this provision, it had to conduct a prior inquiry to establish
that the project would be useful for local people. The government had to enter into an agreement with the
company for which the land would have been acquired, pointing out how the cost of the acquisition would be
met. The government would have had to publish the agreement in the form of a gazette notification before
issuing the acquisition notice.
But in 2006, the CPI (M) government bypassed the binding requirements of Part VII and acquired a tract of
nearly 1,000 acres of land in Singur.
Instead, it acquired these lands, which were specifically identified by Tata Motors for constructing a
manufacturing plant that would produce the Nano, envisioned as the worlds cheapest car, through a Stateowned entity, the West Bengal Industrial Development Corporation.
The governments argument was that the acquisition was in furtherance of the States new industrial policy
and it was for public purpose as the plant would create jobs for hundreds of people.
Though the Calcutta HC agreed with states in 2008, man small and marginal farmers who had refused to
accept the compensation filed appeals in SC.
Property Rights and State
The scope of an individuals right to property has been mentioned in the Constitution of India.
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In original constitution, Art 19 (1)(f) guaranteed all citizens freedom to acquire, hold and dispose of property,
subject to reasonable restrictions in public interest
Also, Art 31 vested in the state an explicit power to expropriate property for a public purpose by paying
compensation to the landowner. However, such acquisition had to be backed by suitable legislation.
These provisions enabled the judiciary to review virtually every act of acquisition during the initial years of
Constitution. But judicial interventions further strengthened the governments resolve to dilute property rights,
through measures that were meant to enable the state to bring about greater equality in land ownership.
Finally in 1978, the 44th constitutional amendment deleted both Article 19(1)(f) and Article 31 which gave the
right to property a mere non-fundamental status.
The reason for this amendment was to provide the state with wide latitude to enable it to achieve land
reforms. But the amendment instead deepened the inequality.
The continued use of 1894 Act showed that both the Union and the various State governments have routinely
acquired land for the benefit of private industry in name of public purpose.
Thus, these acquisitions have tended to work to the benefit of the rich, often at grave costs incurred by small
farmers.
Understanding the public purpose

Earlier, Supreme Court which was burdened by accusations of excessive intervention, allowed the expansion
of the states power in this domain.
It has generally ruled that even a token contribution by the government towards the cost of acquisition is
sufficient to escape the requirements of Part VII.
In 2003, the court validated an acquisition of land to establish a diamond park which comprised of various
units for cutting and polishing diamonds. It reasoned that such park would generate a good deal of foreign
exchange and would create employment potential.
The SC in its ultimate analysis said that land acquisition for setting up of an industry in private sector could be
called for public purpose only if the government sanctioned the payment of a nominal sum towards
compensation.
Therefore while hearing pleas of farmers, the SC was facing challenge of mountain of precedent that had
allowed a precipitous (hasty) expansion of the meaning of public purpose.
Though one judge out of two judge bench accepted that the left governments expropriation was intended for
the benefit of the public, the other judge was far more suspicious.
Through a scrupulous analysis of Cabinet memoranda and letters exchanged between the State government
and Tata Motors, the other judge concluded that the lands in question were acquired solely for the benefit of
the company.
Hence, the attempt by the government to circumvent the special procedures of Part VII through a claim that
the lands were acquired in public purpose was a colourable exercise of power.
The judge observed that if such acquisition was allowed to sustain, it would attempt to justify any and every
acquisition of land of the most vulnerable sections of the society in the name of public purpose to promote
socio-economic development.
To some extent, the LARR Act 2013 specifically defines public purpose with greater clarity and also mandates
that where acquisitions are made for the benefit of private companies, the prior consent of at least 80% of the
affected landowners ought to be secured.
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Conclusion- The judgement as a guiding light

State governments of Tamil Nadu, Rajasthan and Gujarat, among others, have already either amended the
new law or enacted legislation of their own creating a sui generis processes that permit takings even in the
absence of a direct public purpose.
States like Telangana are also in process to amend the land law in such a manner as to do away with the
requirement of consent when acquiring property for private companies so long as the acquisition is for a
public purpose.
It is known that many State laws offend the Constitutions guarantee of equal treatment, but unless the courts
make express declarations to such an effect, they are likely to be widely deployed to acquire land under
LARR 2013 and also extending the meaning of public purpose to absurd lengths.
The LARR is not a panacea to issues like possession of land which is taken on impulse, mostly delayed
payment of compensation and treating public hearings prior to any acquisition, if conducted, as inconvenient
formalities.
But, in comparative terms it is certainly a progressive legislation. It redefines the manner in which the state
ought to exercise its immense power to take property.
In this light, the Singur judgment is seen as the positive affirmation of the law along with a judgement that
could guide the Supreme Court towards interpreting the Constitution in its finest meaning.
What is the importance of Land Acquisition, Rehabilitation and Resettlement Act of 2013 (LARR Act). Discuss
in light of recent Singur judgement.
The Supreme Court has taken a new stand with regards to interpreting public purpose which is often used
for benefits of private individual/organisation. Critically examine.
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NATIONAL
TOPIC:
General Studies 2
performance of these schemes
General Studies 3
Issues related to direct and indirect farm subsidies and minimum support prices
Farm puzzle: Dip in fertiliser sales despite rains and low rates
There has been a significant drop in fertiliser sales amidst positive attributes such as good rains, low fertiliser prices
and the Agriculture Ministry projecting an all-time-high kharif foodgrain and oilseeds production in2016. However,
this has puzzled both the policy makers as well as industry.
Sale of Fertilisers
Urea
Fertiliser firms sold 143.71 lakh tonnes (lt) of urea during April-September
It was 7.2% below the 154.80 lt for the corresponding kharif season period of 2015.
Urea is the most widely used fertiliser in India
Others
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Sale of di-ammonium phosphate (DAP) dipped from 50.73 lt in 2015 to 42.06 lt in 2016.
Sale of complexes (fertilisers with varying proportions of nitrogen, phosphorous, potassium and sulphur) saw
downfall from 43.08 lt to 39.97 lt in an year.
It is considered an unprecedented situation as there was a normal southwest monsoon in 2016 which resulted in
higher kharif-sowing area of 3.7 million hectares over 2015.
There was a record output of kharif cereals (126.33 million tonnes), pulses (8.70 mt) and oilseeds (23.36 mt).
To further stimulate the demand, there was reduction in prices of urea and DAP. But the unexpected happened as
even the low prices did not boost the sale.
What is the reason for declined fertiliser sales?
1. Increase in pulses production

The negative sales growth of urea can be partly pertained to 29.1% jump in pulses acreage in 2016.
Pulses being leguminous plants, whose root nodules harbour bacteria that naturally fix atmospheric
nitrogen, require less urea.
In addition, it can save roughly one bag per hectare for the succeeding crop.
2. Neem coated urea
The governments policy to make 100 per cent neem-coating mandatory for both domestically manufactured
and imported urea is said to be more important reason.
Normal urea is prone to nitrogen loss on accounting of leaching (underground percolation) and volatilisation
(escaping into the atmosphere).
Neem coating can control these by ensuring slow release of nitrogen.
It has further stopped illegal urea diversion for non-industrial uses like plywood and melamine manufacture.
The neem coating has also led to improved urea consumption efficiency.
Previously, farmers may have been applying urea once in 10days, but with crop retaining greenness for a
longer time due to slow nitrogen release, the frequency of application could have reduced to 15 days.
Thus, instead of three bags for an acre of paddy, they need to be buying only two.
3. Drought for past two years
Pulses may not need nitrogen but it requires phosphorous. Even then, the sale of other fertilisers.
The reason for overall sluggish sales may have to do with drought too.
Though the rains have been good in 2016, the 2014 and 2015 droughts have left man farmers without any
money to buy fertilisers.
4. Inadequate credit availability
The droughts have not only dented farmers incomes but also their confidence
Though official figures on seasonal agricultural operation loans are not available, the industry believes that
crop credit flow has suffered.
The public sector banks had to make higher provisions against non-performing assets and farmers own
accounts have turned irregular due to back-to-back droughts.
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Conclusion
The government has to help restore the farmer incomes as well as confidence through proper
implementation of Pradhan Mantri Fasal Bima Yojana.
Many reformist ideas are being implemented to increase farmers income so that he can invest more in
productive technology.
Farm mechanisation, new crop technology, e-technology in aid of farmers, GM seeds are long term
measures to increase agricultural productivity. But, to sustain current populations food security, fertilisers play
an important role in enhancing farm adequacies.
Hence, government has to protect farmers interest and provide them with all the necessary agricultural
inputs to sustain and grow the foodgrain availability of population, even in distress times.
It has been observed that despite good rains and low fertiliser prices, the sale of fertilisers has decreased. Is
this a worrying concern? Explain?
Though fertilisers are important for increasing agricultural production, they are harmful for crops and land
too. Critically analyse if organic farming should replace fertilisers.
NATIONAL

Issues relating to development and management of Social Sector/Services relating to
Health, Education, Human Resources.
Important aspects of governance, transparency and accountability
Evolution of the education policy

A new education policy being finalised by MHRD is aiming at making education both emancipator and enabler while
encouraging innovation over rote learning. This inclusive and participatory approach is hoped to give positive
outcomes for the knowledge economy.
Gross enrolment was the focus area in earlier schemes like Sarva Shiksha Abhiyan, Right to Education,
National Literacy Mission.
But, poor quality of education is a pressing issue at present which has been reflected in several national-level
surveys, third-party assessments, and at the employment stage.
Thus, this challenge has to be addressed which is possible through studying various aspects of the Indian
education system at the grass-roots level such as
Quality of trainers
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Curricula upgradation
Use of e-learning
Assessment pedagogies
Institutional accreditation
Focus on extracurricular activities
Common syllabi
Foreign universities Bill
Not-for profit model
The new education policy should include four important facets:
Regulatory
In a new approach, the Telangana government announced its education policy and brought most of the
educational institutions under a single department of education rather than different regulatory divisions.
Such reforms are essential at the central level where there exists many regulatory bodies like UGC, AICTE,
NCERT and various course-specific councils and boards.
On the lines of single regulatory bodies like TRAI or IRDA, an educational regulatory body will be helpful in
improving the overall productivity of the institutions.
A single regulatory educational body would allow educational institutions to focus more on education delivery
to students.
Different regulatory body means too much paperwork, rent-seeking and corruption.
Accountability
Often, parallel education system or coaching institutes are criticised in the Indian education system.
But it has to be known that their existence is owed to failure of main education system comprising schools,
colleges and universities.
This is because there is no accountability system in our educational system.
For comparison, in USA, Every Student Succeeds Act was passed in December 2015 which reduced the role
of federal government and made schools more accountable and performance-oriented.
Similarly in India, schools or colleges should not be allowed to consider themselves merely custodians of
licences to grant degrees or certificates. Instead, they ought to be responsible for the final learning outcome
and also make teachers accountable.
Reservation
Reservation is one of the efficient way towards social equilibrium. However, it need not necessarily be just
caste-based reservation.
When the practice was started just after gaining independence, caste was perhaps the only practical way to
differentiate the privileged and underprivileged.
But today, there is a huge databases and multiple ways to separate both categories.
The social benefits of reservation for a poor family or deprived student from the general category (as defined
currently) is far greater than reservation for an affluent reserved category individual (based on the current
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caste system).
The regressive part is that no government would dare to change the reservation system to solve the unequal
distribution of benefits. Thus, any update on this issue in new educational policy is unlikely.
Financing
The Central government spends less than 4% of the gross domestic product (GDP) on education.
The allotment in 2016-17 budget with increase of just 4.9% year-on-year increase is actually lower as a
percentage of GDP if inflation is factored in.
The government has to validate its claim of considering education as a national agenda by giving
proportionate allocation.
In that context, the hefty fees of premier insitutions like IITs and IIMs should be reduced. No doubt it gives
good salary packages to the graduates but it might also deter a student from becoming an entrepreneur due
to the burden of educational loans.
Conclusion
The market forces should be allowed to decide which educational institution is better rather than the
regulaorty bbodies deciding.
The government should make teachers and institutions accountable by reviewing their eligibility criteria.
If education is listed among the 9 pillars to transform India, then eventually the issue of reservation will have
to be addressed in order to foster excellence in education governance.
The duty of government is to provide best education to the deserving candidates. Even if education is made
free at these powerhouse institutions, there would be an additional expense of only about Rs1,400 crore
which is less than 0.1% of Indias yearly budget or just 0.01% of national GDP.
But, it could have a multiplier effect on the development of an economy which has 54% of its total population
below 25 years of age.
Thus, the new educational policy is expected to bring in some critical reforms to enhance the quality of
education, institutions and overall system.
How does education plays a critical role in creating demographic dividend? Elucidate
What according to you should be major reforms as a part of new education policy? Discuss
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INTERNATIONAL

affecting Indias interests
Important International institutions
Developing regional cooperation in Bay of Bengal

The South Asian subcontinent is looking beyond SAARC for a productive regional forum that is not
constrained by Pakistans veto.
Here comes in the Bay of Bengal region which provides an opportunity for a zone of regional cooperation
where credits go to multiple recent developments
The collapse of SAARC summit in Islamabad has made the consideration of alternatives an immediate
imperative.
PM Modis special interest in linking South and South East Asia and Bangladeshs traditional commitment to
regionalism is showing alignment to new formation between countries sharing Bay of Bengal waters.
To support this development, Sri Lankan PM Ranil Wickremesinghe has been approval of Bay of Bengal
regionalism.
Sri Lankan boost
In a series of recent speeches in Tokyo, Jakarta, Singapore and Delhi, Sri Lankan PM laid out an agenda for
Sub regional cooperation between Sri Lanka and south Indian states
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Transregional economic integration- among the South and South East Asian nations bordering the
Bay of Bengal littoral.
Sri Lanka and Indias five southern states together have a population of 272 million people and a combined
GDP of over $500 billion.
For Sri Lankan PM, if India and Sri Lanka work together, this economic zone can emerge as one of the
worlds most dynamic.
Meanwhile, Bangladesh has also integrated itself well with eastern subcontinent.
In a recent visit to India, Sri Lankan PM called for a tripartite trade liberalisation agreement between
Lanka, India and Singapore. It also aims for collaboration between these three countries for development
of a port in Trincomalee on Sri Lankas eastern seaboard.
Picture Credit: http://www.myseek.org/wp-content/uploads/2011/11/map.gif

Rich history and potential of Bay of Bengal
Bay of Bengal region has a rich history of maritime commerce across the Bay of Bengal between peninsular
India, Sri Lanka and South East Asia.
One of the first trading ventures along the Bay of Bengal was The Company of Merchants of London Trading
into the East Indies more commonly referred to as British East India Company.
Also, as it is centrally located in the region from the Middle East to the Philippine Sea and being in centre of
two huge economic blocks, the SAARC and ASEAN, it has a strategic importance.
Bay of Bengal could become Caribbean rival as a high-end tourist destination. There can be cruise liners
sailing from Kochi to Singapore via Maldives, Sri Lanka, Andamans and Thailand.
There is enormous possibilities for regional economic cooperation among the members of the BIMSTEC
forum that brings five nations from South Asia Bhutan, Bangladesh, India, Nepal and Sri Lanka and
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two from South East Asia Myanmar and Thailand under one umbrella of international free trade
around the Bay of Bengal.
For India, BIMSTEC or Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation has
been on top of mind.
There also have been suggestions for including Indonesia, Malaysia and Singapore into the BIMSTEC forum.
Even before SAARC crisis, India had decided to invite the leaders of the BIMSTEC to the outreach segment
of the BRICS summit in Goa. Thus, now India has the chance to breathe in new life into BIMSTEC that had
remained moribund since its formation two decades ago.
BBIN
There was another regional forum which was formed by four contiguous states BBIN- Bangladesh, Bhutan,
Nepal and India- after Pakistans reluctance to sign on to the South Asian connectivity agreements at the
SAARC summit in Kathmandu in November 2014.
It presaged the prospect of the Bay of Bengal emerging as a vehicle for regional cooperation.
The BBIN constitutes a natural sub-region of the Subcontinent. Besides shared land borders, they all have a
big stake in the Bay of Bengal.
For the two landlocked Himalayan states, Bhutan and Nepal, the shortest sea access is to the Bay of Bengal
and it runs through the two coastal states Bangladesh and India.
China has also shown considerable interest in this region as for parts of southwestern China too, the Bay of
Bengal is the nearest sea. Also, China has promoted the idea of sub-regional collaboration among China,
Myanmar, Bangladesh and India.
Today, these countries are part of Chinas OBOR initiative. Though India is wary of OBOR, especially the
western corridor through Pakistan and the central corridor through Nepal, it is more open to engaging China
on the eastern corridor.
Conclusion
The new hopes for Bay of Bengal ride on the fact that Lanka and Bangladesh have long been champions of
regionalism.
When India was strong about its self-imposed economic isolation in 1960s and early 1970s, Sri Lanka was
eager to join the ASEAN institutions.
It was Bangladesh which took lead in promoting the SAARC idea in 1980s. Today, it also hosts the secretariat
for the BIMSTEC.
Thus, Bangladesh and Sri Lanka, two of Indias neighbours cum partners in Bay of Bengal are raring to go
forward in uniting the Bay of Bengal.
India too now has the opportunity to demonstrate that it can do a lot better in the Bay of Bengal when
Pakistan did not allow any such close cooperation between member countries in SAARC.
China is another factor which India has to consider for pepping up its important role in strategically important
Bay of Bengal. China is trying to make its room in Indian Ocean and thus India has to be equally aggressive
in protecting its maritime interests in the region.
PM Modis meeting with the leaders of Bay of Bengal in Goa during the BRICS provides a big opportunity to
set a new agenda for regional cooperation under the BIMSTEC forum where dynamic issues such as coastal
shipping, counter-terrorism, development of underwater resources in the Bay to protecting the marine
environment can be undertaken.
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India has to aggressively maintain and develop its interest in two strategically important maritime regional
organisations. Discuss in detail the organisations and how they can help India to establish itself as regionally
strong power.
SAARC might soon lose relevance owing to one neighbour who is supporting terrorism. What are Indias
options to establish itself as a regional power and how should India develop its character as a regional
power?
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ENVIRONMENT
TOPIC:
General Studies 3
Conservation, environmental pollution and degradation, environmental impact assessment
General Studies 2
Bilateral, regional and global groupings and agreements involving India and/or affecting Indias
interests
Effect of policies and politics of developed and developing countries on Indias interests, Indian
diaspora.
Fight against climate change- Amending the Montreal Protocol at Kaigali

In news: In first week of October 2016, the Paris agreement obtained the required number of ratifications and will
become international law from November 4. More such initiatives are required to contain the disastrous effects of
climate change
The Paris agreement ratification has a great significance in the fight against climate change where it has set
the goal of keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial
levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.
Now, the eyes are on the annual climate change conference (CoP 22) that begins in Marrakech (Morocco)
where countries will get down to finalise the rules and institutions that will govern implementation of Paris
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agreement.
In another development, the International Civil Aviation Organisation (ICAO) carved out an agreement to curb
the rise of emissions from international aviation after 2020. Though some countries including India did have
reservations about it.
This deal asks the countries to offset, voluntarily to begin with, any rise in their aviation emissions through
activities like planting of trees or funding activities that reduce carbon emissions elsewhere.
Though 191 member countries approved of it, as of now, only 65 countries have decided to join the
programme that will initially run from 2020 to 2026.
However, it has been considered a good beginning towards mitigating climate change pace.
Montreal Protocol- Amendment in Kaigali, Rwanda
Picture Credit: http://image.shutterstock.com/z/stock-vector-rwanda-political-map-with-capital-kigali-nationalborders-important-cities-rivers-and-lakes-233912998.jpg
To plug another hole of greenhouse gas emissions, countries had gathered in Kaigali to finalise an
amendment to the Montreal Protocol to enable this 1989 ozone-protecting agreement to phase out the use of
Hydrofluorocarbons, or HFCs.
HFCs are a class of gases that are several thousand times more damaging than carbon dioxide.
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HFCs, used mainly in the coolant and refrigerant industry, are not ozone-depleting, and are hence not
covered by the Montreal Protocol. They replaced Chlorofluorocarbons (CFCs), which the Montreal Protocol
phased out because they were destroying the ozone layer.
But, HFCs turned out to be very potent greenhouse gases, and unlike other GHGs that are being dealt with
by the Paris Agreement, HFCs are sought to be eliminated through the Montreal Protocol as well.
It is estimated that a phasing out of HFCs by 2050 will prevent a 0.5-degree rise in global
temperatures by the end of this century.
There is unanimity in deciding these targets as well as agreement that developed countries, which are both
the bigger producers and bigger consumers of HFCs, have to begin phasing them out earlier.
What is on table?
Differences exist in the details, and four proposals are on the table put forward by India, the US (North America),
European Union, and the Small Island Countries.
India
It wants that developing countries like itself to begin the phase-out only from 2031.
It has promised to reduce their HFC production and consumption to 15% of what it would be in the baseline
year of 2028-30 (average of the figures in each of these years), by the year 2050.
But, it wants the developed countries to begin the phase-out in 2016 itself, and completely eliminate
the production and consumption of HFCs by 2035.
USA and EU
It wants developed countries to begin the phase-out from 2019, and reach just 15% of the baseline year
(2011-13) by 2036.
The EU wants the baseline year for developed countries to be 2015-16, and wants them to eliminate
85% of the baseline HFC production and consumption by 2034.
Both the US and EU want developing countries to begin by 2019, or latest by 2021, and eliminate 85%-90%
by 2046.
There are supposed to be interim targets as well the phase-down schedule and those constitute further
points of disagreement.
Developing countries seek to give their industry adequate time to discover and adapt to new technologies
that would enable them to use HFC substitutes.
These countries are also seeking multilateral financing to support the shift to newer alternatives, want their
industry to be given full conversion costs and also cost of a second conversion in cases where a transitional
technology has to be deployed.
Way forward
The Kigali meeting is expected to add momentum to the fight against climate change. That is why, despite
differences, Kaigali is expected to deliver a positive outcome.
India has valid points as representing the developing countries as they have to protect its domestic industries.
That is the reason India wants their phase down to begin later.
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Once the HFC amendment is approved, the world will be left with just one more climate change hole to plug,
that of emissions from international shipping.
Like international aviation, international shipping emissions are not covered under the Paris Agreement
because these emissions cannot be attributed to any specific country.
International shipping accounts for7% of global GHGs, more than international aviation that contributes
1.9%. The sector has had a mandatory carbon dioxide reduction plan for individual ships since 2013. The
demand now is to cap and curb the overall emissions from the entire sector.
In late October 2016, member countries of the International Maritime Organisation are likely to establish a
global carbon dioxide data collection system for ships the first step in that direction.
What is climate change and how is it affecting the world? Critically explain if developing countries are more
affected by climate change effects or not.
What do you understand by the principle of Common But Differentiated Responsibilities? How can India
contribute towards mitigating climate change effect without harming its development prospects? Discuss.
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ECONOMY

Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
Indian Economy: How is it Performing?

The health of Indian economy can be measured in multiple ways. But, each metric points in a different direction. Is it
reliable to show the real picture of Indian economy?
The Gross Domestic Product and Gross Value Added (GVA) are both above 7%, hence it can be said the
economy is growing strongly.
But, the Index of Industrial Production (IIP) has contracted for two straight months. It means that India is
actually not doing so well.
Another indicator can be corporate and personal income tax collections. But it is not necessary that they
reflect true picture of government revenues.
Thus, different indicators align in different directions to conclude the health of economy. Adding to the confusion,
almost every metric put out by the government is incompatible with every other metric, even if they pertain to the
same sector!
Differing results
GVA and IIP

If we compare GVA in the manufacturing sector to the manufacturing component of the IIP, at the outset, it
can be said that both pertain to the manufacturing sector. But the similarity ends here.
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While the IIP Manufacturing measures gross output (the absolute amount produced by the manufacturing
sector), GVA Manufacturing measures the total contribution of labour and capital in the manufacturing
process. This is completely different from gross output.
In the first quarter of financial year 2016-17, the GVA manufacturing was very robust at 9.1%. However, the
IIP manufacturing component contracted by about 0.8% in the same period.
For a common person to understand, it provides a contradictory picture. Total output is shrinking, but
more value is being added to that output. How is it possible and how to determine if the sector is
progressing or not?
Actual measurement
The IIP uses the figures of 2004-05 as the base year.
On the other side, other metrics like GDP, GVA and the inflation indices have moved to a more recent base
year of 2011-12.
Comparing the results of both the indices is not a wise choice.
Inflation
Two sets of numbers are released every month by the government- WPI and CPI
WPI looks at the movement of prices across various categories at the wholesale level whereas CPI looks at
the movement of the prices that the consumer finally pays.
These indices moved in tandem for a while but at the start of 2015, they began to diverge.
In September 2015, at the height of their divergence, there was a 9 percentage point difference between the
two indices. CPI was at 4.4% and WPI was near the same, but in negative.
This does not explain how the prices in the local markets are going to act.
Tax collections
Tax collections are also a useful metric to gauge income growth due to the assumption that if corporate and
personal income goes up, then so will the governments tax collections.
However, it is often forgotten that only 5.5% of the earning population pays income tax. Adding to it, a large
chunk of corporates gets away with paying zero tax thanks to the various exemptions and tax havens they
can avail of.
Thus, any conclusion made from tax collection may mislead where the economy is going.
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Picture Credit: http://www.thehindu.com/multimedia/archive/03041/th12_new_GVA_3041017a.jpg

Periodicity of data releases
The data undoubtedly important for policy and transparency viewpoint and that is why government releases
industrial data.
But such an exercise and effort seems futile when it is released on monthly basis as nothing can be
perceived from such small period of data.
Instead, for a more reliable analysis, a longer period of time is required. For example data, of say, a quarter
can be compared for better prediction of where the economy is heading.
It is very difficult, time consuming to aggregate such large data of entire countrys industrial performance and
agonise over monthly variations of indices.
Ending note
The monthly figures hardly provide any inputs of economic performance. The IIP numbers since 2011 has a
standard deviation of 3. It means, how much any given months performance can vary from the average.
Such huge deviations can derive nothing when data swings so wildly on a monthly basis.
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The data collection efficiency is equally important to come at emerging economic picture. However, there is
no proof that data collectors of the Ministry of Statistics are efficient enough to provide accurate data.
Hence, there should be application of Government Inefficiency Discount to data collection as well. It will
further help to know the truth of the numbers being put out.
Thus, for now, it cannot be said how the economy is doing based on such divergent results.
What are different measures used by government of India to determine economic growth? Explain.
Different indices to measure economic growth is a reliable way to understand the overall picture. However,
these measures have to be in tandem rather than diagonally opposite to avoid confusion. Substantiate.
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INTERNATIONAL

What is happening in Yemen and what should be Indias role?

Story till now
In March 2015, several wealthy Arab nations together started a bombing campaign against the poorest Arab
nation: Yemen. The coalition was led by Saudi Arabia, and backed by the US.
The war stranded over 4,000 Indians in Yemen, and prompted India to launch Operation Raahat, a highly
successful airlift that won New Delhi international attention and kudos.
The bombings faded from the headlines. But again in first week of October 2016, Saudi Arabia bombed
Yemen which killed 140 people, most of which were non-combatants.
This stirred the US administrations conscience which prompted it to say that it was reviewing its participation
in the war, and warned Saudi Arabia not to expect a blank cheque to conduct its campaign.
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Picture Credit: http://www.mapsofworld.com/indexmaps/yemen-map.jpg

Background:
The Saudi Arabias target in Yemen has been Houthi militia which had taken control of large swathes of
Yemen, including its capital, Sanaa.
Saudi Arabia led coalition aimed to return power to the countrys president, Abd Rabbuh Mansur Hadi. But
that had a sectarian and geopolitical subtexts to the war.
The coalition was made up of Sunni-majority nations, and the Houthis are adherents of a kind of Shia Islam.
For Saudi Arabia, which regards Shia Islam as its opponent, the prospect of a Shia uprising along its
southern border was intolerable. Even more alarming for its dominance was that the Houthis were being
backed by its old rival, Iran.
The war by coalition was mainly air strikes where Arab states expensively assembled air forces had total
domination and they were backed by USs logistical and intelligence support. On the other hand, Houthis had
no planes and Iran was never going to send air squadrons to support them.
This made the Saudi Arabia and its allies confident of ending the war in weeks, or at most, months.
But the fact that the war continues to rage till today is a matter of profound humiliation for the Arab states,
whose military forces, built to combat domestic dissent from unarmed political activists, have proven
incapable of subjugating an enemy that fires back, even with inferior weapons.
For Iran, the cost in Yemen is small but the benefit is substantial. It keeps Saudi Arabia in check and
distracting them from the larger geopolitical challenge. From time to time, Iran has also sought to use the
conflict in Yemen to deflect attention from its own participation in the carnage in Syria.
Yemen has been destroyed in war
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Already one of the worlds poorest nations, it has been reduced to abject destitution. The war has been
calamitous for Yemen
More than 3,600 people have been killed. Millions have been made homeless.
The World Food Programme has warned that the country is on the brink of famine, and Amnesty International
reckons that 83% of the population depends on humanitarian assistance for survival.
The Houthis, for whom this conflict had begun as a quest for greater autonomy in the countrys northern part,
now find themselves responsible for a desperate population.
The threat intensifies
The war has made mockery of political calculations. The US Navy recently said that one of its destroyers off
the coast of Yemen had been attacked by two missiles, fired from Houthi-controlled territory.
In another instance, Saudi Arabia said one missile was fired at its airbase. Though the missiles fell harmlessly
into the sea and created no casualties at airbase, it projected dangerous turns into the war.
The Houthis have not previously been known to possess such firepower. Hence, Iran will be obviously
pinpointed.
The US worries about the potential for these weapons to fall into the hands of Al-Qaedas Yemeni operation
where, it has taken advantage of the chaos and expanded its territorial control.
Responding as a community
It has been a depressed observation that world community is no longer unfazed by disastrous wars and
disasters happening in other parts of the world. The starving kids, the bombed civilian places, destroyed
homes evoke no strong response from the world communities.
They have considered such news as a routine and failed to exercise a second look deep into the matter.
Thus, for India, to become a world leader, it has to evolve itself by addressing such matters. Indian media
has to look beyond US and focus attention on global issues which are impacting everyday life of people in
countries like Yemen.
Indias civil society and social movements have been theoretically acute and organisationally substantial on
issues like the right to information and the need of biotechnology but has failed to represent local and
international issues like reinventing the UN and its idea of peacekeeping.
India has to step out and take stands on starvation, rights, energy, violence and sustainability without being
knee-jerk and imitative. This reiterates its domestic policies and focus on such issues in domestic context.
In terms of responses to Syria, Afghanistan, Somalia, Yemen, India has been complicit with the West or
tongue-tied. India does not need to wait for the actions and reactions of the west and form its responses.
India has to be more empathetic with the downtrodden and should not distance itself from what the West calls
the failed societies of Asia and Africa, from the fear of being painted with the same brush.
There is a need for strong activists such as Bertrand Russell who created with great courage a tribunal to try
the U.S. for war crimes in Vietnam and Noam Chomsky who also followed the suit. Today, few have the
courage to demand and label the U.S. and Saudi Arabia for a crime against humanity.
India has to respond as a community. Caring has to go beyond aid to create a new sense of community. Few
aerial rescues are not worth the constant accolades but help is required in terms of moral support and active
support for people of destroyed countries like Yemen and Syria.
India has to uphold its democratic principles and not replicate the American need for hegemony and its lack
of political ethics.
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Countries like Yemen and Syria are facing worst humanitarian crisis. But the world has hardly shown solidarity
for them. Can India play any role in such international matters? Give reasons.
India aims to become world leader-economically and politically. But for that, it has to move beyond US and
China. Do you agree? Substantiate.
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INTERNATIONAL

India and its neighbourhood- relations.
Opportunity at the Indian Ocean

The recent Uri attack had one of its prominent casualty- postponing of SAARC summit, 2016. The regional
cooperation is Indias boost for a wider economic prospect and thus India has to look at other alternatives for
regional cooperation.
After the Uri attack, SAARC summit was boycotted by India, Bangladesh, Afghanistan, Sri Lanka and Bhutan.
But it has brought into view the Indian Ocean Region and the idea of placing the wider region at the heart of a
new neighbourhood policy for India itself.
Though the PM has made multiple foreign visits, there is still a need for India to have a defining international
economic project.
SAARC has been ineffective
The eight nation bodys November annual summit was cancelled after Septembers terrorist attack in India.
SAARC has often been viewed as ineffectual and many observers have asked if its position has become
untenable.
Recently, Sri Lankan PM expressed for a body that focuses on Indian Ocean.
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Picture Credit: http://wikilists.info/wp-content/uploads/2011/05/saarc-countries.jpg

Reviving the Indian Ocean Focus
Recently, a think tank- The India Foundation held an Indian Ocean summit in Singapore in September 2016
which aimed to raise Indias profile as a power with interests across Asia.
Though the events agenda had a softer focuson cultural ties based on Hinduism and Buddhism, there was
a harder edge too, with India positioned as a counterweight to an increasingly assertive China.
When the Foreign Secretary of India argued in favour of reviving the Indian Ocean as a geopolitical
concept, it indirectly pointed against Chinese encroachment in the Bay of Bengal.
Many East African nations have been visited by Indian PM alongside trips to the Seychelles, Mauritius and Sri
Lanka. This initiative should focus on developing potential of economic benefits from greater regional trade
rather than undue importance to narrow cultural concerns on the one hand, and vague geopolitical worries
about China on the other.
African focus in the Indian Ocean Region

India will be the worlds fastest growing nation in the decade to 2024, with its gross domestic product
expanding by an average of 7% per year.
But also of the worlds six fastest growing economies over that same period, four will also be in east or
southern Africa, including Kenya and Tanzania.
This potential growth is already attracting corporate India, with groups like Tata and Mahindra targeting
African markets.
Many countries like Myanmar and Indonesia are also expected to be a part of fast growing economies.
With the schemes like Make in India, the goods manufactured in domestic factories will have markets around
eastern Africa and South-East Asia.
This will be a big boost for Indias presence beyond South Asian sub-continent.
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Picture credit: http://www.thehindu.com/multimedia/dynamic/00944/new_07th_indian_oce_944341f.jpg

Aligning the interests
Though the economic and trade potential are immense, the problem lies in the fact that the links between
these nations are often feeble.
South Asia is one of the worlds least economically integrated regions. But the Indian Ocean, which
encompasses roughly 40 nations and stretches from Australia to East Africa, is hardly any better
connected.
As per estimates, a third of global bulk cargo and two-thirds of oil shipments cross the Indian Ocean.
But most of this goes to different countries, rather than being traded between countries in the region.
Way forward- Improving the situation

India has to take the lead role in defining and implementing the economic trade within the Indian Ocean
region.
The idea of creating a new regional body, or expanding an old one, is one approach being discussed.
Expansion of Indian Ocean Rim Association, a low-profile grouping of 21 countries is a starter. Though it has
its drawbacks. In SAARC, India dominated the group, the Indian Ocean Group countries would suffer the
opposite problem where the countries having hardly anything in common will have to be diffused together.
Also, the record of previous attempts to push alternative regional bodies is not very encouraging. For
instance, BIMSTEC which has been not so active despite pursuing of stronger regional ties. Hence, the
evidences which stated that regional bodies hardly do much to improve trade flows in any case, stand true.
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Chinas successful OBOR initiative shows that tangible projects between countries are normally the best
basis for new economic cooperation across regions.
Thus, to improve the situation, India should make bigger, unilateral push to improve regional connectivity,
including greater financial support for new infrastructure investment and a new push to reduce trade barriers,
beginning with its own.
India has to push projects like Myanmar-Bangladesh-India gas pipeline or provide greater development
funding assistance to poorer neighbours.
The Indian Ocean has the potential to become the most important source of new global growth over the next
20 years, just as the Pacific rim powered the worlds economy for much of the last 20 years.
For India to emerge at the heart of new regional order, it should be ready to give finances to support
developmental activities in region.
Moving away from SAARC, India has immense opportunities to develop various other regional groupings.
What are they and briefly mention their importance.
IOR provides plethora of opportunities to India to develop its economic, political and geographic importance.
Evaluate.
ECONOMICS

The everyday relevance of 2016 economics Nobel

In news: The Nobel Prize in Economics for 2016 has brought forward the criticality of economics in day to day life.
The Nobel Prize in economics has created enthusiasm outside the circles of economists as it is relevant to
everybody. Let us have a look at what the Nobel Prize in economics for 2016 means to us.
Oliver Hart and Bengt Holmstrom were chosen as recipients of the 2016 Nobel Prize in economics for their
work in contract theory.
Their work spans many years of human engagement and explores the contracts in their research studies in
diverse areas such as employer-employee relationships, insurance, banking and regulators, among others.
Hart and Holmstrom have tried to provide a framework to understand how such contracts are designed. This
might help lay people understand the manner in which their employer has structured their salary.
It is important to keep in mind that there are no definitive answers to questions about contracts. Most
answers to economic questions come with the caveat that- it depends on the context.
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Contract theory
Contracts are legally binding agreements governing who will do something in exchange for something
under some circumstances.
The theory holds that the contracting costs between economic units (parties) are shaped by the nature of the
interaction between them.
These costs are not operational costs, such as commission fees or transportation costs. Instead, they stem
from the lack of clarity and enforceability of the terms of the interaction and each units dependence
on the interaction.
Thus, as Oliver Hart puts it- Behind every partnership lurks an incomplete contract.
For example, if two people decide to open a lemonade shop. Person X decides to bring material (cups, raw
material etc.), while person Y make the lemonade. X will serve while Y will be the cashier
X will get worried that Y might take away more cash than him. Thus, they decide to draw a contract which
dictates that returns of their operation must be split evenly. But then Y starts to worry that good lemonade
will make business successful and, X has no role in it and thus 50-50 split is not just. Thus, both will
eventually enter into contract where each ones responsibility will be decided and adhered to.
The regulators need to pay attention

Employment contracts are best seen in the context of principal-agent problems.
From the standpoint of public policy, the work of this years Nobel winners may be a useful framework to
understand the outcome of the recent telecom spectrum auction.
A highlight of the auction was that spectrum in the efficient 700 MHz remained unsold. Bidders felt the
reserve price, or floor for auction bids, was too high for this band.
TRAI and the telecom ministry (agents) of Indian citizens (the principal) should question the outcome- Were
the agents too risk averse? If the answer is affirmative, then if there are any better set of incentives which can
be provided to make sure the principal does not lose opportunities?
Such questions establish a contractual relationship between various concerned parties.
Banking
Even after 2008 financial crisis, bankers are paid large bonus. This creates a huge outrage as those who
created the crisis are being continued to paid exorbitant sums. Why?
This is because the bonuses are built into their contracts. This is a debatable question of how and why
bankers should be given employment contracts that involve large bonuses despite adverse performance.
Explanation- shareholders of a bank (the owners, or principal) employ bankers (agents) to run the bank. The
shareholders are interested in returns but it is the banker who is responsible for the day-to-day decisions that
generate those returns. Thus, the banker has to be compensated for her/his services.
Typically, the principal cannot observe the agents effort. If agents are offered a fixed salary regardless of
effort, there is not much incentive for hard work. This is visible in government jobs.
Thus, in many industries including banking, there is a performance-based pay where better outcomes for the
shareholder (greater returns) are to be rewarded with better compensation for the banker.
However, it involves other tricky parts too- the owners might be interested in long term performance but if
bankers pay is tied into the short-term share price, it might create conflict of interest. Bankers might work to
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boost the immediate share price at the cost of long-term investment.
Teaching
Sometimes, the outcomes of efforts are not measurable.
Teachers are instrumental in the overall development of students. Thus, it is hard to measure what role a
teacher plays in a childs life
Though scores are there to measure the childrens performance, the teachers pay linked to only measurable
outcomes might lead to teachers focusing on tests alone, ignoring more general learning and all-round
development.
Is there a perfect contract?
The Nobel Prize winners have proved that there is no perfect contract. But they have showed ways to improve
outcomes.
Professor Holmstorm argued that instead of paying agents on basis of share price of the company alone,
their pay should be linked to external outcomes (for example, to the relative share price against other similar
companies).
The former is based on luck whereas the latter is competitive. This leads to more efforts by the employee and
better measures of relative performance.
This is possible only when the effort is measurable and can be linked to performance. This includes banking
and manufacturing industry.
However, if the result is immediate, the efforts are not easily visible. In such situation, pay should not be
based on performance. For example, high risk jobs should have fixed salary whereas stable jobs should
attract performance based pay.
Thus, parties cannot specify detailed contract terms in advance as no one knows what will happen in future.
This problem of incomplete contract as specified by Prof. Hart then states solution in such condition.
When future eventualities are not known, the contract should specify who has the right to decide what
to do when the parties cannot agree. Depending on the eventuality that arises, the party with the
corresponding decision rights has more bargaining power, and can secure a better outcome for itself.
Decision rights thus substitute for performance-based pay.
Socially optimal contracts ensure that all play a moral role. For example, if the car owner knows he will get
full payment when the car is damaged, he will not be as careful as he would be if he were liable.
Another application of Prof. Harts theory of incomplete contracts is the question of whether providers of
public services, such as schools, hospitals, and prisons, should be privately owned or not.
Such situations lead to a trade-off between investments in quality and cost reduction. The private
sector might focus too much on cost reduction, but proper contracts can provide incentives for quality as well.
Whereas in case of public sector, there is little incentive no matter what and how the work is done.
Thus, the Nobel Prize winners insights have indeed found their way into modern contracts. Now it remains to
be seen what is an optimal contract for a regulator and how it can be drawn.
What do you understand by contract theory? What is its importance in Indian context? Discuss.
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NATIONAL

Parliament and State Legislatures structure, functioning, conduct of business,
powers & privileges and issues arising out of these.
Telangana- Small administrative units for better administration?

In news: Telangana now has 31 districts from previously 10 districts. But the important question arises is if smaller
units can actually help in better administration or not.
Background:
During 2014 elections, the Telangana Rashtra Samiti had promised creation of 14 new districts.
After it came to power, the Chief Minister initially agreed for issuance of notification for 17 new districts.
Ultimately, due to protests, agitations and demand for new districts, four more were added.
New additions in state
21 new districts
25 additional revenue divisions
125 new mandals
4 new police Commissionerates
23 new police subdivisions
28 new circles
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91 more police stations
Picture Credit: http://images.indianexpress.com/2016/10/telangana-division.jpg

What is being done?
The Telangana Planning Department officials are assigning unique numerical code to all the districts,
mandals and villages afresh.
The Telangana State Remote Sensing Application Centre (TRAC) earlier prepared maps for all the districts, a
prerequisite for giving the district code pending release of standard maps by the Survey of India.
The unique numerical code for districts and mandals is important because of the financial implications and
required for Central programmes like NREGA where funds would be directly released into accounts of
beneficiaries based on authenticated code.
Planning Department officials said unlike in the past where the focus was on data collection, now the focus
would be on resource mapping in each mandal and accordingly the mandal-level officers were re-designated
as Mandal Planning and Statistical Officers.
Small units = Better administration

Facilitate better monitoring of beneficiaries of various government schemes like housing schemes, pensions,
education and others.
Provides more even distribution of resources. The population division on various criteria is known and thus
funds are dispersed as per requirement.
Local inputs into framing of development work. A bottom-up approach to development that allows local
stakeholders greater say in decision-making on issues directly affecting their lives.
The emerging small units will help police in improving relationship with people. Small units make police
accessible to people easily.
As per the CM of Telangana, adopting the model of small districts will boost development and take
administration closer to the people.
The idea was to break down the existing districts into smaller ones each with a population of not more than four
lakh. This way, the district collectors, who manage the district administration, will be able to serve the people better.
Small units = Better administration is not true
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Increased costs due of creation of additional administrative infrastructure, transfer of personnel, and
replication of paperwork.
Initially, existing staff is redeployed and existing buildings are utilised for administrative purposes which
creates pressure on human resources as well as assets.
Telangana government has sanctioned Rs. 1 crore for each district for initial arrangements, which will hardly
suffice.
Increasing bureaucratic work at the village level will not automatically lead to better governance outcomes.
Thus, not all are buying the reasoning of better administration for creation of such small districts in Telangana. It is
said that the formation of districts is more of political decision than administrative one. The agitation in Jangaon,
Sircilla and Gadwal areas of Telangana changed the existing decision of creating 17 new districts to 21 new districts.
Conclusion
Small districts, like small states, can certainly prove to be good models of governance, but without proper
planning and preparation, this new experiment stands exposed to vulnerabilities.
The role of district collectors, police, judiciary and their efficiency will be known as they have smaller areas to
govern. How fast the state government can appoint these government functionaries to begin administration of
district remains to be seen.
A new case study will be available on the subject of Smaller Units as medium to better governance- Reality
or Myth in a while which will provide a first-hand insight into a larger consideration of increasing more states
in India for improved administration and political satisfactions.
Large states give political mileage but becomes administrative nightmare at times. Do you agree that larger
states with small administrative units (districts) will solve multiple governance problems? Critically evaluate
India has small states like Goa and Sikkim and large states like UP and Maharashtra. What according to you
are pros and cons of large and small states? Examine.
INTERNATIONAL

interests
Do not alter MFN status to Pakistan
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In news: After the Uri terrorist attacks, India was undertaking many options to revert back at Pakistan and one was
reviewing the MFN status given to Pakistan. The call was to withdraw the status but is it a wise choice?
The MFN status
The General Agreement on Tariffs and Trade (GATT) was negotiated in 1947.
GATTs articles of agreement were signed by all its founding membersincluding India and Pakistanin
October 1947, and ratified the following year by both countries.
While signing GATT, nations agreed to abide by its cornerstone principlenon-discrimination in trade
relations, whereby an importing country may not discriminate against imports based on their country of origin.
This principle of non-discrimination, articulated in Article I, is referred to by GATT as General MFN
Treatment.
It means that any favour in trade granted to another member country shall be immediately and
unconditionally granted to all other member countries.
No doubt, the terminology is confusing: MFN does not imply favouritism, but actually rules it out. More
importantly, it rules out discrimination in trade against any member country.
Now, anticipating that some countries in future would wish to pursue comprehensive economic integration
with other members, GATT also permitted departures from the principle of non-discrimination and permitted
for formation of preferential trade areas, example EU (Article XXIV)
In the same spirit, GATT observed that India and Pakistan had once been an integrated economic unit, it
provided exception to trade relation between India and Pakistan under article XXIV.
In simple terms, it meant that India and Pakistan can enter into special arrangements with respect to
the trade between them and enjoy closer bilateral trade relationship.
The exception is that they would not be required to extend the same special arrangements to other
GATT nations.
India-Pakistan trade relation

It began under the GATT provisions and remained vibrant for an extended period after partition.
In 1948-49, India accounted for around 56% of Pakistans total exports and 32% of its total imports. Despite
the hostilities of 1948, India remained Pakistans largest trading partner until 1955-56.
The trade relations nosedived with 1965 and 1971 wars.
But, it was resumed on a limited scale after 1972 Simla Agreement was signed.
Later, the trade between India and Pakistan took place on the basis of positive lists (only goods specifically
on the list could be traded).
This was illegal under GATT MFN rules and violation of art XXIV which had permitted more (not less)
liberal trade than the two countries had with other GATT nations.
When WTO was formed in 1995, India accorded MFN status to Pakistan but Pakistan has not reciprocated it
till date.
What can India do?
Many experts believe that India should not revoke Pakistans MFN status. Heres why
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Simple economics logic says that free trade remains the best policy even if your trading partner wishes to be
more closed. As said by economist Joan Robinson, if your trading partner dumps rocks into their harbour to
block entering cargo, you do not make yourself better off by dumping rocks in your own harbour.
Trade with Pakistan is less than 1% of Indias total trade. Even Pakistan does not have significant share of
India in its trade. Thus, trade policy with Pakistan will anyways not yield much result whether it is carrot or a
stick.
Offering MFN status to a trading partner is an obligation, not a choice, for WTO members. If Pakistan has not
given to India, it should raise Pakistans non-compliance at the WTO instead of revoking.
There is hope of peace after war. In this context, free trade may foster prosperity, peace and friendship
among both nations. India should pin on this hope for future.
Thus, India can claim a moral high ground in fulfilling the WTO obligations. Revoking Pakistans status may give
satisfaction of revenge but, it would not reflect mature statesmanship. And considering Indias increasing role in
global issues, India has to maintain high standards of respecting globally set and accepted rules.
What according to you is MFN? Is it important for Indias economic boost? Explain
India has many ways to get back at Pakistan. For that, it need not undertake actions that undermine its
position as emerging global leader. With respect to revoking MFN status to Pakistan, do you agree in favour
of taking such actions? Give reasons
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ECONOMICS

Importance of latest RBI rate cut

In news: In October first week, a new Monetary Policy Committee (MPC) decided at its first policy review to reduce
the benchmark repurchase rate by 25 basis points to 6.25 per cent. What is its importance and what should be
expected?
The Reserve Bank of Indias key policy interest rate has now been cut to its lowest level since 2011.
The unanimous decision of MPC is said to be in consonance with the objective of achieving consumer price
index inflation at 5% by Q4 of 2016-17.
The retail inflation had already dropped to 5.05% in August. The wholesale inflation also reduced to 3.57% for
September.
The RBI Governor clarified that the central bank aims to achieve the 4% inflation target within a range of +/- 2
per cent as the medium term objective by 2021. This means that the earlier objective of taming inflation to 4%
level by March 2018 stands null and void.
Importance
The RBI rate cut performs the very important task of signalling.
Despite the high growth rate of 7.5% that the Indian economy seems to be registering over the past two
years this is the highest rate among the major economies of the world. Particularly, the performance of
Indian industry in general, and manufacturing in particular, continues to be far from satisfactory.
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Thus, the impact of policy change is necessary to be assessed.

The rate cut of 25 basis points is not expected to bring about a dramatic change in the investment climate. It has to
be supported by many other important factors to be operating favourably and in tandem. Two of these are:
1. The Keynesian animal spirits it calls for the investors to have a substantial measure of spontaneous
optimism about their projected line of activity. Currently, this optimism seems to be lacking.
Keynesian animal spirits is used to describe human emotions and instincts that influence and guide human
behaviour which can be measure through consumer confidence.
2. There is need of administrative and bureaucratic environment which facilitates and encourages
investment activity. 2016 marks 25 years of economic liberalisation but despite the plethora of reforms that
have been undertaken in the spheres of industry and commerce, India presents a picture of a country that is
still rule bound.
There is no doubt that constant measures are being taken by government of India in terms of ease of doing
business and there has been improvement in index in the past year. This has to be a motivating factor for the
potential investors.
Thus, the rate cut offers a signal or a directional indicator suggesting that the central bank is interested
in maintaining the growth momentum.
This is important particularly against a background where the RBI in recent times had been substantially
identified with pursuing an inflation targeting approach, to the exclusion of all other contending objectives.
Two key factors seem to have contributed to the rationale for the rate cut
1. The RBI is now guided by retail inflation in deciding its monetary actions. So, with the fall in retail inflation in
August to 5.05%, the RBI was confident of reducing the repo rates.
2. More importantly, there is expectation of decline in food prices due to good monsoons in past Kharif
season. This will further soften the food articles inflation, especially pulses and vegetables.
Ending notes
The world economy is witnessing generalised weak investment and trade activity. This has been worsened by
sharpening of inequality across most major economies of the world.
The consequence of this is a suppression of aggregate demand.
Thus, the decision of MPC comes in the background of such global deceleration scenario in 2016.
However, amidst this condition, India presents a contrasting picture where the overall growth rate seems to
be reasonably satisfactory, with the possibility of a good agricultural performance, which would boost rural
demand.
Thus, the rate cut seems justified.
However, much of the success of rate cut now will depend on how it will be transmitted to the final users via the
banking system.
Virtually banking are confronting the problem of excessively large volume of non-performing assets (NPAs). It is
known that this problem has not risen overnight and the major defaulters have been from among the top business
houses in the country.
The problem has been rooted in crony capitalism where many questionable deals are pertaining to political party in
power.
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Thus, dealing with this problem requires a great deal of firm actions and decisions and pragmatism along with
systemic change in the nature of the political economy that has been practised so far.
What is repo rate? What does its increase or decrease signify and how it affects the Indian economy? Explain
in detail.
A good monsoon is guarantee to better economic condition. Do you agree? Substantiate this statement with
suitable examples.
NATIONAL
TOPIC:
General Studies 1
Population and associated issues, poverty and developmental issues, urbanization, their problems
and their remedies.
General Studies 2
Development processes and the development industry
performance of these schemes
Compact settlement- Time for redevelopment of cities

Background:
Traditionally, Indian human settlements have always been very compactly built, except perhaps in the coastal
or hilly regions.
There are many advantages of compact settlement of cities over urban sprawl which includes less car
dependency thus lower emissions, reduced energy consumption, better public transport services, increased
overall accessibility etc.
Over the time, various global movements such as the garden city movement and so on have led to cities
spreading horizontally. The introduction of automobiles added to urban sprawling.
However, now it seems to have come back to full circle with desire of having a compact settlement due to
problems faced like commuting long distances, environmental pollution on account of combustion engine
driven vehicles, time and health casualties, safety issues, etc.
Global thinking
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In 1973, the term compact city was first coined by George Dantzig and Thomas L Saaty, two mathematicians
whose work had a profound impact on urban planning in modern day.
The UN HABITAT III New Urban Agenda Draft stated that there is a commitment to promote the
development of urban spatial frameworks, including urban planning for
Sustainable management and use of natural resources, especially land
Appropriate compactness, density and polycentrism (having multiple centres).
It will be through infill or planned urban extension strategies to trigger economies of scale and agglomeration,
strengthen food system planning, enhance resource efficiency, urban resilience and environmental
sustainability.
The spatial development strategies are encouraged which take into account prioritising urban renewal by
planning for the provision of accessible and well-connected infrastructure and services, sustainable
population densities, and compact design and integration of new neighbourhoods in the urban fabric,
preventing urban sprawl and marginalisation.
There is a commitment to promote safe, inclusive, accessible, green and quality public spaces as drivers of
social and economic development.
It will leverage their potential to generate increased social and economic value, including property value and
to facilitate business, public and private investments and livelihood opportunities for all.
Thus, it is clear that present day thinking and general agreement in the world over is for developing compact
neighbourhoods.
Situation in India
The central city areas in India, particularly residential areas have become very old with stressed infrastructure
where buildings have deteriorated and outlived their useful life.
Though there are new projects coming up in cities but they are in far flung areas which lack adequate
infrastructure and are difficult to access.
Therefore, there is a need for redevelopment of central city areas to unlock property potential, capture value
and redevelop.
There is an inherent advantage of centrality of the location, well established infrastructure and connectivity.
When this is added to the need for housing and commercial spaces, it ignites the demand side of
redevelopment.
Fortunately, the policies in India recognises this inherent potential and provides for the same. Also, the real
estate industry advocacy has also contributed to the favourable policy climate.
Advantages of redevelopment
1. The owners of existing properties in the neighbourhoods get free of charge, new housing and infrastructure.
The new infrastructure is of a larger size and has better specifications, sometimes comes with some
monetary benefits as well.
2. Also, the real estate developers are given additional floor area (FAR/FSI) so that they can generate additional
space which can be sold in the open market and offset costs.
This increases the value and quality of infrastructure provided.
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3. The local agencies are able to generate revenues for providing the additional infrastructure to support the
increased densities.
4. A percentage of EWS housing is mandatory and contributes to inclusiveness of the development.
5. The city gets a new urban form and face which technologically advanced, sustainable and contemporary.
Mumbai example
Mumbai city has always been short of urban spaces due to its geographical location.
The policy of redevelopment in Mumbai, the first of its kind in the country, came with redevelopment of the
slum areas (SRD).
Under the popular SRD scheme, several lands of high property value got developed where the slum dwellers
were resettled from their shanties into pucca high rises and the developers also put up housing units for sale
in the open market.
Today, there has been considerable amount of housing stock created, particularly for the EWS population,
which would have been otherwise not possible.
Although issues such as quality of redevelopment for the EWS or redevelopment of only those lands with high
land values where the developer sees good profits have arisen, the policy has been a hit.
The popularity of this model has spread to lands occupied by cooperative housing societies, Maharashtra
Housing and Area Development Authority (MHADA) colonies and other areas. The government quarters are
also proposed to undergo such development.
Thus, though the city as a whole has been densified and the demands on the infrastructure have increased,
there have been constant efforts to gear up the infrastructure including renewal of public transport to contain
itself by accommodating more and minimise sprawl.
Delhi example
The initial Master Plan for Delhi was based on the American model of wide roads and drive to work
philosophy.
However, with the changed circumstances and the uncontrolled sprawl, there is now growing need to contain
the same and instead grow denser.
Safety considerations, availability of large tracts of unutilised or underutilised land in the city has prompted
the latest version of the Master Plan to take a serious look at the conscious provision for redevelopment.
In areas close to the Metro lines, an FAR of 400 is permissible with an additional 15% FAR mandated for
EWS. It is launched as Transit Oriented Development (TOD) where intense compact developments are
permitted along the Metro lines so as to encourage mass transit.
The Delhi Metro Rail Corporation has already undertaken over a dozen redevelopment projects, for both
commercial and residential purposes with the association of various developers.
Redevelopment in other areas is also permitted with a high FAR of 300.
The real estate industry is now permitted to develop and contribute to the development of the city, which was
till recently the sole preserve of the Delhi Development Authority (DDA).
In Delhi also, slum development was the initiation point. But it is facing many hiccups and slum
redevelopment projects (like Katputli slum project) are hanging for long.
However, Delhi needs more redevelopment plan of underutilised government housing which dominate the
Delhi residence.
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Thus, Delhi has to now evolve from its low density, low rise and segregated land use image of urban sprawl
to that of a high density, high rise and mixed use compact development.
Way forward
The policy frameworks of Mumbai and Delhi are in alignment with global thinking of promoting safe,
sustainable, thriving, compact developments.
These evolving policies and clarity in rules will promote redevelopment which can enrich the lives of all
segments of the society and at the same promote the economy and take people out of the cycle of low
incomes and make them more prosperous.
But, as always experienced, policy is brilliant but implementation is lethargic. For redevelopment, the policy is
in tune with smart development and thus, the implementation should be speedy and time bound.
The municipal officers have to be sensitised to customer service and also create consumer awareness of the
procedures for urgent reinforcement.
The commitment of central government for development and improve systems of local governance should
be made successful with cooperation from all the stakeholders.
Is compact city development related to smart cities concept? Discuss
Urbanisation is an indices of economic and social development. Critically analyse
What is redevelopment of cities? Do you think it will lead to creation of sustainable, healthy cities in India?
Examine.
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INTERNATIONAL

India and its neighborhood- relations.
affecting Indias interests.
8th BRICS SUMMIT GOA DECLARATION

In News:
The 8th BRICS summit was held in Goa. The summit concluded with adaptation of Goa Declaration.
The theme for the summit was Building Responsive, Inclusive and Collective Solutions.
BRICS Five-nation powerful grouping Brazil, Russia, India, China and South Africa
BRICS brings together five major emerging economies, comprising 43% of the world population, having 30%
of the world GDP and 17% share in the world trade.
The ninth BRICS Summit will be hosted by China in 2017.
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Eight BRICS Summits have taken place so far. The 8th BRICS Summit was hosted by India during its
Chairmanship in 2016. The earlier Summits were held as under :
7th BRICS Summit 8-9 July 2015 in Russia (Ufa)
6th BRICS Summit 1416 July 2014 in Brazil (Fortaleza)
5th BRICS Summit 2627 March 2013 in South Africa (Durban)
4th BRICS Summit 29 March 2012 in India (New Delhi)
3rd BRICS Summit 14 April 2011 in China (Sanya)
2nd BRIC Summit 16 April 2010 in Brazil (Brasilia)
1st BRIC Summit 16 June 2009 in Russia (Yekaterinburg)
Starting essentially with economic issues of mutual interest, the agenda of BRICS meetings has considerably
widened over the years to encompass topical global issues.
BRICS cooperation has two pillars consultation on issues of mutual interest through meetings of Leaders as well
as of Ministers of Finance, Trade, Health, S&T, Education, Agriculture, Communication, Labour, etc. and practical
cooperation in a number of areas through meetings of Working Groups/Senior Officials.
Regular annual Summits as well as meetings of Leaders on the margins of G20 Summits are held.
During Indias BRICS Chairmanship, we will adopt five-pronged approach:

1. Institution building to further deepen, sustain and institutionalise BRICS cooperation;
2. Implementation of the decisions from previous Summits;
3. Integrating the existing cooperation mechanisms;
4. Innovation, i.e., new cooperation mechanisms; and
5. Continuity, i.e., continuation of mutually agreed existing BRICS cooperation mechanisms.
In short, the Indian approach towards its BRICS Chairmanship could be captured by IIIIC or I4C.
Outcome of the summit:
1. BRICS called for tackling terrorism, early adoption of CCIT
Goa Declaration condemned terrorism in all its forms and stressed that there can be no justification for such
acts.
It called upon all nations to adopt a comprehensive approach in combating terrorism, violent extremism,
radicalisation, recruitment, movement of terrorists including foreign terrorists and blocking sources of
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financing terrorism.
BRICS called upon all nations to work together to expedite the adoption of the Comprehensive Convention on
International Terrorism (CCIT) in the UN General Assembly without any further delay.
2. Reaffirmed commitment to the FATF (Financial Action Task Force)
The BRICS said sources of terror funding like organised crime by means of money-laundering, drug
trafficking, criminal activities, dismantling terrorist bases, and countering misuse of the internet including
through social media by terror entities should be focus areas.
BRICS said it reaffirmed commitment to the FATF (Financial Action Task Force) international standards on
combating money laundering and the Financing of Terrorism and Proliferation.
The FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop
policies to combat money laundering. In 2001 the purpose expanded to act on terrorism financing.
It also called for swift, effective and universal implementation of FATF on combating terrorist financing,
including effective implementation of its operational plan.
3. UN Reforms
India is among the many countries that are worried about the weakening of international institutions
and the tendency to impose unilateral preferences over others.
For instance, American military action (2003) to remove President Saddam Hussein from power in Iraq
an action the United States launched unilaterally in violation of the UN Charter.
To guard against this kind of unhelpful trends, the wings of the United Nations must be suitably strengthened.
With only China as a permanent member presently, Asia is grossly underrepresented, whereas Africa and
Latin America do not have any representation in the inner circle of this important organ.
BRICS called for urgent need to reforms of the United Nations, including UN Security Council, to
increase representation of developing countries.
Other highlights:
Resolution of civil war in Syria, in accordance with the legitimate aspirations of the people of Syria and
action against U.N.-designated terrorist groups like IS and Jabhat al-Nusra.
Appreciated progress in implementation of Strategy for BRICS Economic Partnership and emphasise
importance of BRICS Roadmap for Trade, Economic and Investment Cooperation until 2020.
Welcomed adoption of 2030 Agenda for Sustainable Development and its Sustainable Development
Goals.
BRICS also welcomed the Paris Climate Agreement and its imminent entry into force on 4 November.
Reiterated determination to use all policy tools to achieve the goal of sustainable and inclusive growth.
India and China share multiple concerns when it comes to security and trade engagements. Multilateral and
regional summits provide a platform to discuss these issues. Critically analyse.
Is BRICS an effective Multilateral Forum in a Multi-polar International Order? Substantiate your views.
BRICS countries must extend the synergy being witnessed in economic and strategic areas to the fight
against terrorism? Discuss.
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ECONOMY

Inflation assessment: India needs to explore more

India has multiple inflation indicators.
There are four consumer price indices (CPIs) Countrywide CPI, CPI for agricultural labourers, rural
labourers and industrial workers.
These sector-specific CPIs are used for fixation of agricultural wages, rural wages and the inflation
compensation or dearness allowances for employees in the government.
In addition to CPI, there is a wholesale price index (WPI). Until recently, it was the preferred inflation anchor
because of its wider coverage, a short time lag and weekly (it became a monthly index from 2011) availability.
CPI is the new inflation indicator
Now, the new series of CPI with its all-India coverage, updated base (2012) and availability with similar time
lag has become the new inflation anchor and also basis for monetary policy changes.
The shift in focus and use of CPI has been in line with many other countries which formally or informally
having an inflation target approach.
It has also been consistent with the objective of minimizing the impact of rising prices on people.
Difference between WPI and CPI

WPI
CPI
By
Compiled and published by Office of the

Economic Advisor on a monthly basis.
Compiled and published by the Labour Bureau on

a monthly basis.
Stage
Measures inflation at each stage of production.
Measures inflation only at final stage of production.
What
Middle point of the sum of all the goods bought

by the traders.
Middle point of the sum of all the goods bought by

consumers.
Basis
Based on the price prevailing in the wholesale

markets or the price at which bulk transactions
are made.
Based on the final prices of goods at the retail

level.
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Groups
Manufacturing, agriculture, quarrying, mining,

and in the export/import industry.
Education, apparel, foods and beverages,

communication, transportation, recreation, housing
and medical care.
Only CPI apt as an inflation indicator?

A former Chairman of the Prime Ministers Economic Advisory Council, C. Rangarajan had mentioned that if WPI is
behaving same as CPI, there is no additional information. But, if there is a difference, it is not affordable to ignore
the behaviour of WPI as it does not reflect only international commodity prices but also domestic conditions.
CPI looks at inflation purely from the perspective of a consumer and ignores the prices that a producer faces.
The CPIs completely ignore the inflation for investment and capital goods.
A diverging trend between WPI (which is more akin to a producers price index) and CPIs is observed
because two sets of prices now confront producers and consumers.
There has been average inflation for manufactured products which are further sub-divided into consumer
non-durables, consumer durables, intermediates, basic goods and capital goods.
The inflation of these has been averaging between 2.8%, 1.8%, 0.7%, (-) 1.3% and 1.2% during the 32 month
period of January 2014 to August 2016. Whereas, the CPI has averaged 5.7%.
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Picture Credit: http://www.livemint.com/r/LiveMint/Period2/2016/10/17/Photos/Processed/g_oped_new_web.jpg
Picture Credit: http://www.thehindubusinessline.com/multimedia/dynamic/02637/bl27_CPI_table1_2637039g.jpg

Use of weights
CPI uses the consumption proportions as derived from the NSSO consumer expenditure surveys for intercommodity weights.
But there are huge differences between NSSO consumption expenditure and the expenditure as derived from
the National Accounts Statistics (NAS) at aggregate level and commodity groups level.
The NSA weighs used for CPI show that there is a moderation in inflation by nearly 60 basis points during the
aforementioned 32-month period
The CPI adjusted for NAS weights has always been lower than the CPI with NSSO weights
Thus, there is a need for adjustment in current CPI as it is based on data on consumption and not the
complete data.
The adjusted CPI inflation will not only be below the maximum threshold level of inflation but there can also
be a possibility of moderating inflation because of improved availability of food products. This may lead to an
indication of possible moderation in policy rates in the near future by the Reserve Bank of India.
Conclusion
Management of inflation has always been a tricky issue because the interest rate, which is used as the key
policy instrument, is double-edged.
While containing inflationary expectations, it also affects adversely the investor perception and investment
costs.
The use of a single inflation anchor in a situation of divergent inflation perceptions for consumers and
producers may often amount to ignoring the structural realities of the economy.
However, the current official mandate is for the use of CPI in targeting inflation, but scope exists for using CPI
with commodity weights being derived through NAS rather than NSSO.
The monetary authorities can also consider other indicators like WPI in situations where CPI is at odds with
WPI.
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Is using CPI as the sole indicator for measuring inflation adequate? Examine
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NATIONAL
TOPIC:
General Studies 2
Welfare schemes for vulnerable sections of the population by the Centre and States
General Studies 1
Social empowerment
Salient features of Indian Society, Diversity of India.
Triple Talaq case: the judicial intervention

In news: The debate around triple talaq and Uniform Civil Code (UCC) has once again surfaced with mixing of two
issues. Though the Law Commission sought public opinion on the exercise of revising and reforming family laws of
all religions in the context of Article 44 of the Constitution, which talks of a Uniform Civil Code (UCC) for all citizens, it
was opposed by All India Muslim Personal Law Board (AIMPLB), along with several other organisations associated
with the Muslim community and called it as an attempt to target their personal law. The public today sees the
judiciary as their final resort to get answers to their questions and doubts. Once again, the judicial door has been
knocked for justice by a distressed women for her violation of fundamental rights. This time the battle seems to be
tougher and judiciary is expected to play a crucial role.
The triple talaq issue has been confused with the issue of a uniform civil code, which has made the Indias minority
Muslim community defensive.
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A former SC judge, Justice V.R. Krishna Iyer, once wrote that personal laws can be reformed from within, without a
quantum leap into a common code. According to him, remarkable changes in Islamic laws are possible without
violating the Quran but adopting progressive hermeneutics.
Also, it has been time and again debated if judiciary can interfere while pronouncing judgements relating to personal
law.
Ruling in the Shah Bano case
The case had a 62 year old Muslim woman, Shah Bano, who filed a petition in local court under Section 125
of CrPC, asking for maintenance from her husband (Khan) for her children and herself, after being thrown out
of house.
Khans response was that Shah Bano had ceased to be his wife after he pronounced an irrevocable talaq
(divorce) in 1978. Thus, he was not liable to provide maintenance (which was meagre Rs. 5400) except as
prescribed under the Islamic law, mehr- amount promised on marriage.
Courts at different levels upheld Section 125 of CrPC to be applicable to Muslims as well. Later, the case was
taken to SC where Khan argued that Shah Bano was no more his responsibility because he had a second
marriage, which was permissible under Islamic law.
Finally in 1985, a five-judge bench of SC pronounced its verdict that there was no conflict between the
provisions of Section 125 and those of the Muslim Personal Law on the question of the Muslim
husbands obligation to provide maintenance for a divorced wife who is unable to maintain herself.
The SC held that Section 125 of the CrPC applies to all regardless of caste or creed. It also discussed the
desirability of bringing a uniform civil code in India which would help in national integration.
However, it was the last ruling by Supreme Court in a matter concerning personal law.
Criticism by clergy
The Muslim clergy was not happy with the judgement as it saw its importance in matters concerning social
relations amongst Muslims under threat.
The source of Muslim Personal Law in India is the Muslim Personal Law (Shariat) Application Act, 1937. It is a
colonial law which allows Indian Muslims to be governed by the Shariat.
The Muslim Personal Law was given the power to have their say in matters pertaining to intestate
succession, special property of females, marriage, dissolution of marriage, maintenance etc. where the
parties are Muslim.
The absence of codification has legally allowed community leaders to hold the practices as sacrosanct. The
Dissolution of Muslim Marriages Act, 1939, however, codifies a womans right to seek divorce by approaching
the court.
Incoming of government
The government of the time was requested to intervene in the matter and overturn a ruling which irreparably
compromised Muslim Personal Law according to Muslim clergy.
The government had to appease the Muslim community for reasons best known and hence couldnt shy
away from the case.
The government argued that Koranic provision or lack of it for maintenance was neither a compulsion nor
closed to interpretation. The Muslims could be reassured of their rights only by some amendments.
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Thus, it passed The Muslim Women (Protection of Rights on Divorce) Act 1986 which though was in name of
protecting rights of Muslim women who had been divorced, actually denied Muslim divorcees the right to
alimony from their former husbands.
A setback for Muslim women
The Shah Bano judgement was overturned by adopting the new aforesaid law.
As per the law, when a Muslim divorced woman is unable to support herself after the iddat period that she
must observe after the death of her spouse or after a divorce, during which she may not marry another man,
the magistrate is empowered to make an order for the payment of maintenance by her relatives who
would be entitled to inherit her property on her death according to Muslim law.
But when a divorced woman has no such relatives, and does not have enough means to pay the
maintenance, the magistrate would order the State Wakf Board to pay the maintenance.
The liability of the husband to pay maintenance was thus restricted to the period of the iddat only.
Thus, if it was a losing cause for Muslim women is still debated. Today, the society needs judiciary to take on the
responsibility of interpreting the law in light of the widely criticised practice of triple talaq, which in the view of many
practising Muslims is not the law.
The present Shayra Bano case
Shayara bano, who was divorced in 2015, has not gone to court for maintenance issue but has challenged
the Constitutional validity of three aspects of Muslim personal law: polygamy, triple talaq and nikah halala (a
practice under which a woman who wishes to remarry her former husband must first consummate a nikah
with another man).
It has to be known that her petition does not mention UCC or ask for codification of the Muslim personal law.
It is fight for equality before law and protection against discrimination on the basis of her gender
and religion.
This case has once again stirred the murky waters of validated rights of Muslim women as per personal law
or constitution.
Present stand of government

The centre has opposed in the Supreme Court the practice of triple talaq among Muslims, maintaining that it
cannot be regarded as an essential part of religion.
According to centre, the practice of triple talaq is not in conformity with the constitution as well as cannot be
regarded as an essential part of religion.
The principles of gender justice, equality and dignity enshrined in the Constitution of India are above the
personal laws.
It gave examples of Muslim countries like Pakistan, Bangladesh, Morocco, Egypt, Iran and Sudan which do
not have provision of triple talaq or if it exists, then it is regulated by law.
The government has maintained that it doesnt want to impose a uniform civil code and that both the issues
were separate.
Conclusion
No doubt, reform should come from within the religious community. That was why Raja Ram Mohan Roy,
Dayanand Saraswati and others reformed Hindu religious practices. Over the years, Hindu religious practices
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have undergone substantial change and reform.

The Muslim clerics should take note of the changing times and allow the Muslim women to exercise their
rights and not subdue them in name of patriarchal laws.
The way forward in this matter is to discuss and prevent continued exploitation of women by taking
necessary measures wherever required.
There is a need to create awareness that triple talaq is related to ending gender discrimination and ensure
gender justice and equal rights. Whereas UCC is a different matter which aims to bring about common laws
on issues like marriage, divorce/separation and inheritance which will be applicable to Indians irrespective of
religion, caste and community. Undoubtedly, one of its basis is ending gender discrimination, but it certainly is
not the sole reason.
The government has to act in a matured way by handling both the issues separately with clarity. Politics
should now not negatively affect individuals basic right under Indian Constitution.
A high level committee report- Status of Women in India (2015) need to be released. The report straddles the
fine line between ensuring gender justice and maintaining the plurality of family laws and reiterates the need
to protect diversity, and rejects uniformity as a way to push for womens rights.
Art 14 (Equality before law) and Art 15 (Against specific discrimination) have to be upheld. Art 25 should not
be interpreted for petty personal gains, thereby giving meaning to Art 21 (Right to live).
What do you understand by triple talaq? In the 21st century of women empowerment and gender equality,
can it be said that such provisions of personal law violates rights of Muslim women? Substantiate your stand.
Can Uniform Civil Code and issue of triple talaq be pronounced in same sentence? The removal of triple
talaq is a contentious issue for traditional Muslim clergy but has found support in many Muslim women. Do
you agree? Give reasons.
If the constitution supports secular fabric, can it have a say in personal laws guided by faith and religion?
Critically analyse.
ECONOMY/SOCIAL ISSUE
TOPIC:
General Studies 3
and employment
Inclusive growth and issues arising from it
Government Budgeting
General Studies 2
performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the
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protection and betterment of these vulnerable sections.
Idea of a UBI for India

What the article intends to convey?
We know that, Government of India provides subsidies to help lift the poor out of poverty. However, subsidies are
not only regressive but also cause misallocation of resources.
Therefore, as a solution, Economist Pranab Bardhan and others have recently advocated that the government of
India should provide every citizen a universal basic income (UBI).
Introduction:
Even after three decades of sustained economic growth and a proliferation of welfare schemes, roughly one in three
Indians still live below the poverty line, according to the last report on poverty estimates submitted by the
Rangarajan committee in 2014. (Too many Indians remain trapped in poverty.)
The persistence of poverty and significant leakages in welfare schemes that aim to alleviate it has prompted many
academics and policymakers to explore more efficient alternatives to Indias creaky and leaky welfare architecture.
One of the suggestions has been to move towards a universal basic income.
The idea is already gaining currency in the developed world, as fears of automation and consequent job losses
have spurred thinkers in the West to devise ways wherein all individuals would be guaranteed some income.
Advantages of Universal Basic Income (UBI)

1. UBI would avoid the inefficiency and wastage associated with government subsidies, and help lift the poor out
of poverty.
2. UBI can end the non-merit subsidies and tax exemptions that mostly benefit the rich.
What is Basic Income?

A basic income is an income unconditionally granted to all on an individual basis, without means test or work
requirement. It is a form of minimum income guarantee that differs from those that now exist in various European
countries in three important ways:
It is being paid to individuals rather than households;
It is paid irrespective of any income from other sources;
It is paid without requiring the performance of any work or the willingness to accept a job if offered.
The universal basic income, as it is understood today, has three distinguishing characteristics:
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First, it is universal and not targeted. In the Indian context, this makes sense because of the less-than-satisfactory
experience with targeting welfare services. Apart from the standard arguments against targetingthat it often
excludes a lot of the deserving households from receiving subsidies, people often fall in and out of poverty and
therefore it becomes difficult to ascertain who are rightfully entitled to receive such benefits. Thus, a universal
programme would not only be more appropriate, it will also reduce the burden of the bureaucracy in so far as it is
engaged in identifying the deserving beneficiaries of any targeted programme.
The second feature of any proposed universal basic income scheme is cash transfer in lieu of in-kind transfer.
There are standard arguments in favour of cash transfers over in-kind transfers (food stamps or grains provided
through the Public Distribution System) as they are supposed to be much less market-distorting than in-kind
transfers.
The third distinguishing feature is that it is unconditional. Cash transfers are not tied to exhibiting certain behaviour,
and the people are free to spend the cash as they want. An example of conditional in-kind transfer in India would be
the mid-day meal scheme, where the mealan in-kind transferis conditional upon attending school.
Thus, the universal basic income seeks to provide unconditional cash to every individual, or household, and the
individuals would be free to use the cash as per their discretion and spend according to their own preferences.
Thus, the movement for a universal basic income has attracted support from both the left and right ends of the
political spectrum.
What are the main arguments against a universal basic income?

1. It would reduce the motivation for work and might encourage people to live off assured cash transfers.
2. Ensuring fiscal affordability of UBI
Economist Pranab Bardhan and others have proposed for an payment of between Rs3,500 and Rs10,000
per person (based on poverty estimates for 2014-15)
As it is estimated paying a basic income equivalent to the poverty line, to each and every adult in India, would
entail a cost of 11% of GDP, which is way above the 4.2% of GDP that the government currently spends on
explicit subsidies.
(Explicit subsidies mean the subsidy cost under the Public Distribution System, fertilizers, railways, electricity, sugar,
LPG, kerosene and water).
3. It is also argued that unconditional cash transfers might raise wages due to the decline in the supply of casual
labourers.
4. There is also question of whether a shift towards it should be a substitute for all existing subsidies or whether
it should complement the existing ones.
5. A UBI handout by itself would not solve the two fundamental problems the poor face in Indialow
income-earning opportunities and inadequate quality of human capital services consumed by them.
6. In India, where entrepreneurship and job creation continue to face formidable challenges, and public
sector failures in education, health and sanitation severely degrade the poors expenditure on
human capital. Therefore, a UBI will prove insufficient or even wasteful.
In discussing the merits and demerits of the UBI or any other development policy, it is important to avoid some
standard pitfalls.
First, all policies have some pros and cons, and so just picking a problem with or highlighting a nice feature of
a particular policy is not good enough. That traps us in an elusive search for win-win policies. The focus
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should be on relative costs and benefits of different policies.

Second, one size does not fit all. We should be open to the possibility that different policies could work well in
different contexts. Cash transfers only make sense if you have ready access to markets, which is not true if
you live in remote rural areas in which we have to rely on in-kind transfers.
Third, there is no magic pill that will cure all problems. Different policies are needed to address different
problems.
So yes, a UBI or a cash transfer as envisaged by JAM or the MGNREGA will provide some relief to the poor, but will
not provide a long-term solution to the problem of poverty. For that one needs investment in health, education, and
skill-formation to enable the poor to take advantage of growth opportunities, and investing in infrastructure and
regulatory conditions to facilitate private investment for employment generation.
Way ahead:
While some of the challenges of implementing a basic income can be met with the better use of technology and an
expansion in banking services, the challenge of affordability remains. How far existing welfare schemes can be
trimmed without hurting the poor, and how much public resources can be saved to implement the scheme remains
an open question.
The required budgetary resources could be raised by trimming the implicit and explicit subsidies to the rich (often in
the form of tax breaks or subsidies given to goods largely consumed by the relatively well-off), or by raising
additional taxes by improving property tax collections (currently extremely low).
Conclusion:
Few regard UBI as a simple and potentially comprehensive antidote to poverty. It is also viewed as a means to
demolish complex welfare bureaucracies while recognizing the need for some social transfer obligations in a way
that doesnt weaken incentives significantly.
What is basic income? What are the potential benefits and drawbacks of a universal basic income
guarantee?
Is India ready for a universal basic income scheme? Critically analyze.
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ECONOMY

Government Budgeting.
FRBM Act and Committee to review FRBM targets

Background:
In 1980s, India saw a sharp deterioration of the fiscal situation, which ultimately culminated in the balance of
payments crisis of 1991.
Within a decade of economic liberalisation, the fiscal deficit and debt situation again seemed to head towards
unsustainable levels around 2000. At that time, a need was felt to institutionalize a new fiscal discipline
framework.
The FRBM Bill 2000 was introduced by previous NDA government in the parliament to institutionalize the
fiscal discipline at both the centre and state level. However, the bill took three years to become an act.
The act was passed to make the central government and finance minister accountable to parliament for fiscal
discipline.
However, due to lack of an autonomous Fiscal Management Review Committee (as proposed originally) the act
more or less became like a Directive Principle of State policy which is not enforceable via courts. Its mandate was
diluted and even today we find both revenue deficit and fiscal deficits in budget documents.
Govt sets up FRBM committee on fiscal deficit range
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The government on May 17, 2016 formed a five-member committee under former revenue secretary N K
Singh to review the working of the 12-year old FRBM Act and examine the feasibility of a fiscal deficit
range instead of a fixed target.
The Fiscal Responsibility and Budget Management (FRBM) committee will shortly submit its report to the
government (within this month).
So, let us know about

What is Fiscal Responsibility and Budget Management (FRBM) Act? What are the amendments to it?
The FRBM Act is a fiscal sector legislation enacted by the government of India in 2003, aiming to ensure
fiscal discipline for the centre by setting targets including reduction of fiscal deficits and elimination of revenue
deficit. It is a legal step to ensure fiscal discipline and fiscal consolidation in India.
The targets set under the Act was postponed several times in later years though some other goals of the Act
including phasing out of government borrowing from the RBI were implemented.
What the FRBM says?

The FRBM rule set a target reduction of fiscal deficit to 3% of the GDP by 2008-09. This will be realized with an
annual reduction target of 0.3% of GDP per year by the Central government. Similarly, revenue deficit has to be
reduced by 0.5% of the GDP per year with complete elimination by 2008-09. Later, the target dates were reset and
Budget 2016-17 aims to realise the 3% fiscal deficit target by March 2018.
The Act gives slight flexibility to the government regarding the realisation of the target as well. It gives the
responsibility to the government to adhere to these targets. The Finance Minister has to explain the reasons and
suggest corrective actions to be taken, in case of breach.
Following are the provisions of the Act in detail.

The government has to take appropriate measures to reduce the fiscal deficit and revenue deficit so as to
eliminate revenue deficit by 2008-09 and thereafter, sizable revenue surplus has to be created.
Setting annual targets for reduction of fiscal deficit and revenue deficit, contingent liabilities and total liabilities.
The government shall end its borrowing from the RBI except for temporary advances.
The RBI not to subscribe to the primary issues of the central government securities after 2006.
The revenue deficit and fiscal deficit may exceed the targets specified in the rules only on grounds of national
security, calamity etc.
Though the Act aims to achieve deficit reductions prima facie, an important objective is to achieve inter-generational
equity in fiscal management. This is because when there are high borrowings today, it should be repaid by the
future generation. But the benefit from high expenditure and debt today goes to the present generation. Achieving
FRBM targets thus ensures inter-generation equity by reducing the debt burden of the future generation.
Other objectives include: long run macroeconomic stability, better coordination between fiscal and monetary policy,
and transparency in fiscal operation of the Government.
Amendments to the FRBM Act
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Amendments to the Act were made after its initial version in 2003. This include revision of the target realisation
year and introduction of the concept of effective revenue deficit.
In 2012 and 2015, notable amendments were made. As per one provision of the amendment, a Medium-term
Expenditure Framework statement should be prepared which will set a three-year rolling target for expenditure
indicators.
As per the amendments in 2012, the Central Government has to take appropriate measures to reduce the fiscal
deficit, revenue deficit and effective revenue deficit to eliminate the effective revenue deficit by the 31st March, 2015
and thereafter build up adequate effective revenue surplus and thereafter as may be prescribed by rules made by
the Central Government.
As per Finance Act 2015, the target dates for achieving the prescribed rates of effective deficit and fiscal deficit (3%
fiscal deficit) were further extended by 3 years to March 2018.
Working of FRBM act and its reality check:
The combined fiscal deficit (fiscal expansion) and credit growth (monetary expansion) as a percentage of
GDP has halved from 17.4 per cent in 2009-10 to 8.8 per cent, which is less than nominal GDP growth.
Three things are obvious. Money supply growth has reduced. Credit expansion has fallen. And even fiscal
deficit and credit growth put together have declined, all pointing to the growing economy being starved of the
needed money needed, in which the FRBM Act has also lent its hand.
If bank credit growth falls, fiscal deficit may need to go up. If bank credit growth rises, fiscal deficit
should reduce. This is particularly true for a growing economy like India.
Had the fiscal deficit not been above the FRBM ideal limit of 3 per cent in the last four years, the growth
would have suffered even more. It does not need a seer to say that the FRBM law as it stands harms the
economy. Thus need of the hour is to review FRBM act, and if necessary, amend it significantly.
Committee to review FRBM targets

As per the Union Budget 2016-17, the government constituted a Committee to review the implementation of the
FRBM Act. This was after a widely held view among experts that instead of fixed fiscal deficit targets, it may be
better to have a fiscal deficit range as the target. This will help the government to meet specific situations like
recessions which demand high government expenditure. There is also a suggestion that fiscal expansion or
contraction should be aligned with credit contraction or expansion respectively, in the economy. While remaining
committed to fiscal prudence and consolidation, Budget stated that a review of the FRBM Act is necessary in the
context of the uncertainty and volatility in the global economy.
There is a need for a fiscal policy council on the lines of recently formed monetary policy committee, which will now
be accountable for monetary policy. Such a council will strengthen the hands of the finance ministry, which otherwise
is the sole guardian of fiscal prudence. It would also enhance coordination between monetary and fiscal policies,
which otherwise tend to be confrontational.
Critically discuss the effectiveness of Fiscal Responsibility and Budget Management (FRBM) Act 2003 in
meeting its objectives.
Recently there was a suggestion to amend FRBM act and to review the fiscal consolidation path. Throw light
on the short fall of the current FRBM act and what needs to done to bring more fiscal discipline?
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NATIONAL
TOPIC:
General Studies 2
General Studies 3
Disaster and disaster management
Fire accidents in India- the increased frequency and way forward

In news: Two fire accidents on consecutive daysone in a hospital in Bhubaneswar, and the second in a high rise in
Mumbaihave again raised questions on violation of fire safety norms across the country and what possible should
be done to prevent such incidents.
Recent incidents
Bhubaneshwar SUM Hospital
The ICU and dialysis unit of SUM hospital was engulfed in fire outbreak which resulted in loss of more than
20 lives.
Cause of fire: Short circuit
Maker Tower fire, Mumbai
Fire due to short-circuit in high rise tower of Mumbai caused death of two people.
Thus, this issue requires prominent attention as fire hazards are slowly finding more place as recurring incidents in
a year.
History repeats
In 2011, a fire broke out in Advanced Medical Research Institute (AMRI) Hospitals, Kolkata which claimed 90
lives, mostly due to choking.
Cause of fire: The basement where the fire started housed a pharmacy, a central storeroom and the
biomedical department, all containing inflammable articles.
Reason for such high toll: The building was centrally air-conditioned, and there was no ventilation channel
for the smoke to come out. The staff was unable to provide police and firefighters with the buildings plan,
especially the locations of emergency exit and staircase, thus hampering rescue.
Other major previous incidents: Uphaar cinema, Delhi (1997); A school in Kumbakonam, TN (2004); A
multi-storey market place in Kolkata (2013).
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Facts and figures:

Fire is a state subject and has been included as municipal function (Art 243-W) in the XIIth Schedule of Indian
Constitution.
Directorate General Civil Defence, Ministry of Home Affairs is the nodal office responsible for providing
Advisories to State Governments on Fire Prevention, Fire Protection, Fire Legislation and Training matters.
As per National Crime Records Bureau (NCRB) data, Fire accidents accounts for 4.3% of the total deaths
reported due to natural, un-natural and other causes of accidents in 2014.
About 19,513 people died in accidental fires in 2014.
Electrical short circuit incidents increased 6% to 1,764 in 2014 from 1,661 in 2013.
Odisha had reported the maximum fires in commercial buildings (40) in 2014.
Reasons for poor fire disaster response
Ill-equipped states and lack of funds
Several studies have found that many states have not provided enough resources to fire safety. There
have been complaints of lack of funds and staff in the fire departments.
Most of the states do have fire stations. However the lack of equipment is one major concern. Equipment
like turn table ladders, crash tenders and rescue vehicles are clearly missing in many of the fire stations
across the country.
The manpower shortage is another problem with reported shortage of 96.28% firemen according to the
National Disaster Response Force and Civil Defence.
Urban fire services suffer deficiencies of 72.75% in fire stations, 78.79% in man power and 22.43% in
firefighting and rescue vehicles.
The existing set-up of fire services in the country is rather heterogeneous and not conducive to effective
protection against increasing incidents of fires
Blatant violation of rules

In the 2011 AMRI hospital case, there was an illegal storeroom in the hospitals basement which was packed
with inflammable articles like chemicals and medical waste. In addition, the hospital lacked adequate firefighting equipment.
There is a ban imposed by the Supreme Court of India on bursting crackers after 10 PM. However at the
Puttingal temple (Kerala), the firecracker show took place at 3 AM which was clearly in violation of the
Supreme Court order.
Further it has been found that in most cases the authorities do not take the permission of the fire department
before bursting crackers in crowded places where several thousands of people gather.
A no-objection certificate is a must from the fire department, but in nine out of ten cases it is not sought.
A comprehensive National Building Code has been provided but hardly its specifications are adhered which
increases the chances of fire accidents.
Non adherence to National Building Code Part 4
The code specifies construction, occupancy and protection features that are necessary to minimise
danger to life and property from fire.
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It mentions topics such as fire alarm system, height of buildings, escape lighting and staircase infrastructure,
fire lift and fire exit etc.
The National Building Code is specific, requiring hospitals to have horizontal evacuation exits for
bedridden patients and sprinkler systems for structures of specified height, which would cover most medical
institutions.
AMRI Hospitals construction plan violated the National Building Code, 2005. The 500-bed hospital did not
have a proper ventilation system, which caused many patients to suffocate to death.
The National Building Code says the area around a hospital must be kept clear to allow easy movement
of fire tenders. The AMRI tragedy was exacerbated because the narrow lane leading to the hospital delayed
the operations of the fire brigade.
Though detailed description of fire safety has been provided, but most often, authorities do not even take
note when buildings violate this code.
This proves that fire safety is low on the list of our priorities as attested by the India Risk Survey of 2015.
Picture credit: http://ficci.in/SEDocument/20348/India-Risk-Survey-2016.pdf

Who is responsible?
The centre sees prevention of fires and emergency response as a municipal function under State
governments. Hence, it is not in its priority area.
With a steady decline in the enforcement of urban regulations and building plans, fire risks have multiplied in
public buildings.
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The SUM hospital lost its accreditation with the National Accreditation Board for Hospitals & Healthcare
Providers (NABH) two months ago. It was found lacking quality standards, including measures to deal with
fire. Yet, it was allowed to be functional by the concerned authorities.
It is also believed that during fire incidents in both hospitals, there were not enough ambulances available to
shift the patients out. However, such evacuation is not the responsibility of the hospital alone but also of the
local administrations. It is responsibility of administration which has to see that infrastructure maintains the
prescribed safety standards.
What next?
Enormous political will and active judicial oversight to enforce best practices and rein in violators is required.
Meanwhile, patients and visitors could get little risk protection and suitable compensation if all institutions
offering any form of medical care are compulsorily required to be insured against disasters.
Such a regulation would make a hospital insurable only if it installs good quality fire warning and control
systems.
Looking ahead, the Centre and State governments should address fire risk in medical institutions as well as
buildings as a top order priority.
This can be achieved by understanding the hazard, adopting the right infrastructure, enforcing the building
code and holding frequent fire drills to do things correctly in an emergency.
Conducting regular fire safety audits and trainings is found to be an effective tool for assessing fire safety
standards in an organisation. Further, more attention needs to be drawn to the lack of funds and equipment
at the state level to deal with fire incidents.
The NDRF has specified a detailed and dedicated Fire Cell which takes care of all the issues pertaining to
fire safety in India. It is required that the concerned level of government takes note of it and implements the
standards.
Though fires are caused either due to the actions of individuals, which may be accidental or deliberate, or
through their failure to take necessary precautions for curbing fire incidents, such as regular inspections,
maintenance and repair of defective equipment, etc., it is important to note that fires start when source
of ignition comes into contact with any combustible material. If one can identify and control the possible
sources of ignition or eliminate its contact with combustible materials, one can greatly reduce the possibility of
accidental fire.
Why is there an increase in number of fire accidents in India? How can it be curbed to the best possible
extent? Examine.
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INTERNATIONAL

Important International institutions
Taking forward India-Myanmar relation

Fading relevance of SAARC
In recent months before Uri Attack, India was considering various measures to deal with dismal role of
SAARC.
SAARC had been inefficient in its objectives- promoting economic integration, developing transportation and
energy corridors and promoting cooperation to deal with terrorism.
The main obstacle of SAARC has been Pakistan which sought to use the platform to undermine Indias
influence in South Asia, while aggressively seeking to secure Chinas admission to it.
However, post Uri attack, by securing support of Afghanistan, Bangladesh, Bhutan, Sri Lanka and Maldives in
refusing to participate in the forthcoming SAARC summit in Islamabad, India has shown that it means
business when it comes to dealing with terrorism.
Looking the other way
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India has encouraged in promoting economic and anti-terrorism cooperation with its ASEAN partners
as well as with eastern side SAARC partners- Nepal, Bhutan and Bangladesh.
It was observed that very little attention was paid to utilising the BIMSTEC group which is organisation of all
the eastern SAARC members across the Bay of Bengal India, Nepal, Bhutan, Bangladesh, Sri Lanka
with ASEAN members Myanmar and Thailand.
Thus, drawing inspiration from previous BRICS summit hosted by Brazil and Russia, where partner-nations
from Latin America and the Shanghai Cooperation Organisation were invited to attend BRICS, India also
invited the BIMSTEC partners. The leaders of BIMSTEC met BRICS leaders at the 8th BRICS summit held in
Goa.
Hence, Pakistan was prevented from undermining Indias diplomacy across its eastern neighbourhood and
made BIMSTEC the primary organisation for regional outreach.
A quadrilateral India-Sri Lanka-Maldives-Seychelles corridor across the western Indian Ocean can
reinforce the effort of developing outreach in Indian Ocean.
India requires a policy for regional containment of Pakistan by complementing these efforts with an IndiaIran-Afghanistan economic partnership.
This will make Pakistan realise that in its efforts to deny India connectivity across its western neighbourhood
and damaging Indias economic partnerships with its eastern neighbours, only it will be marginalised.
Thus, marginalising Pakistan in South Asian regional forums till it mends its ways should be the salient
feature of Indias policy to promote regional economic cooperation.
The Myanmar focus
Myanmar plays a salient role across Indias eastern shores. In this new strategic setting, India has to pay
more attention to its relation with Myanmar. India has to be more cooperative and evoke trust for better
bilateral relations.
It is known that Myanmar has sought to take relations forward but there is unhappiness over the insensitivity
India showed by undertaking cross-border strikes against NSCN(K) separatists on Myanmars soil, without
prior approval from that government.
It shouldnt be forgotten that for over two decades Myanmar has cooperated with India in counter-terrorism
operations on their soil against armed separatist groups from India.
Thus, India needs to reciprocate more appropriately.
India has to develop deeper economic and social ties with Myanmar. Unlike Afghanistan and Sri Lanka where
India has considerable progress in infrastructural development, it has a deplorable record in executing
development projects in Myanmar.
More active and cooperative bilateral relation

The first official visit of Myanmar State Counsellor Aung San Suu Kyi has been hailed by PM as an
opportunity to give a further boost to the full range bilateral relationship.
In the context of Indias Act East Policy, it is meaningful to examine this as an intent to infuse a sense of
urgency in Indias efforts to realise the full potential of this critical bilateral partnership.
However, intent apart, the reality is that bilateral trade between India and Myanmar has been woefully below
potential.
Though India categorises the $1.57-billion trade in 2014-15 with Myanmar as a reflection of India being
the fourth largest trade partner with Myanmar, but a rough comparison with China shows true picture.
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The trade between Myanmar and China is $9.5 billion in the first ten months of 2015-16. In addition,
China invested $15.418 billion in 115 projects, making it the biggest investor in Myanmar.
While India is still pledging to enhance its engagement in the agriculture, power, renewable energy
and power sectors, the Chinese are already financing new ports, highways and dams in Myanmar.
Thus, there is good amount of Chinese control even in the financial sector in Myanmar.
There has been repeated emphasis on improving connectivity across Indias eastern borders by a trilateral
friendship highway through Myanmar to Thailand. Sadly, the work has been tardy on this highway.
The rebuilding of roads between Manipur-Mandalay-Thailand could be the centrepiece for tourist traffic but
once again, the poor project implementation and many restrictions and procedures made roads hardly
utilisable.
One of the unique features of our border with Myanmar has been that tribals living on both sides can travel
freely across it.
However, it has been heard that India is planning to fence the international border. This move is opposed
from the CMs of the four bordering States: Nagaland, Manipur, Mizoram and Arunachal Pradesh.
Fencing should be limited and not affect the free movement of tribals. Rather it should be undertaken
primarily to prevent the rapidly growing and illegal imports of Chinese products from across the IndiaMyanmar border.
Picture Credit: http://www.thehindu.com/multimedia/dynamic/01471/TH_31_Highway_col__1471900e.jpg

Conclusion and way forward
China is more visible in Myanmar because it came forward to help Myanmar when it was an international
outcast under the military junta. So, India clearly has vast ground to cover if it has to prove its relevance to a
democratic regime that seems keen to strike a balance of power between its two giant neighbours.
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Myanmar is also worried of the excess Chinese influence on its economy as well as demography. This is
visible as 50% of Mandalays population is today Chinese and learning Mandarin has become an essential
job requirement for the young population.
Against this backdrop, Indias expression of intent to strengthen partnership has to be backed by encouraging
Indian businesses to invest in Myanmar, open hospitals and facilitate pharmaceutical exports further, besides
improving transportation facilities.
The two sides have signed three agreements to boost cooperation in power, banking and insurance
sectors, besides deciding to step up ties in areas of oil and gas, agriculture, renewable energy and
health care.
Also close coordination to ensure security in the areas along border, and sensitivity to each others
strategic interests, will help both neighbours.
India has to give utmost importance to enhancing the ties with Myanmar as it is its doorway to larger South
East Asian nations as well as moderating Chinese influence in the region.
India has other neighbours to look forward to, to counter Pakistans negative influence in the region. In the
light of this, examine the importance of India-Myanmar relation.
Chinese influence in the South Asian countries has to be moderated and many countries see India as a
capable competitor. Do you agree? Explain
INDIAN HERITAGE AND CULTURE
TOPIC:
General Studies 1
Indian culture will cover the salient aspects of Art Forms, Literature and Architecture from ancient to
modern times.
General Studies 2
World Heritage and Indias World Heritage List

Heritage is our legacy from the past, what we live with today, and what we pass on to future generations. Our
cultural and natural heritage are both irreplaceable sources of life and inspiration.
The United Nations Educational, Scientific and Cultural Organization (UNESCO) seeks to encourage the
identification, protection and preservation of cultural and natural heritage around the world considered to be of
outstanding value to humanity. This is embodied in an international treaty called the Convention concerning the
Protection of the World Cultural and Natural Heritage, adopted by UNESCO in 1972.
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UNESCOs World Heritage mission is to

Encourage countries to sign the World Heritage Convention and to ensure the protection of their natural and
cultural heritage;
Encourage States Parties to the Convention to nominate sites within their national territory for inclusion on the
World Heritage List;
Encourage States Parties to establish management plans and set up reporting systems on the state of
conservation of their World Heritage sites;
Help States Parties safeguard World Heritage properties by providing technical assistance and professional
training;
Provide emergency assistance for World Heritage sites in immediate danger;
Support States Parties public awareness-building activities for World Heritage conservation;
Encourage participation of the local population in the preservation of their cultural and natural heritage;
Encourage international cooperation in the conservation of our worlds cultural and natural heritage.
The Criteria for Selection

To be included on the World Heritage List, sites must be of outstanding universal value and meet at least one out of
ten selection criteria.
The World Heritage Committee, the main body in charge of the implementation of the Convention, has developed
precise criteria for the inscription of properties on the World Heritage List and for the provision of international
assistance under the World Heritage Fund.
Selection criteria
1. To represent a masterpiece of human creative genius;
2. To exhibit an important interchange of human values, over a span of time or within a cultural area of the
world, on developments in architecture or technology, monumental arts, town-planning or landscape design;
3. To bear a unique or at least exceptional testimony to a cultural tradition or to a civilization which is living or
which has disappeared;
4. To be an outstanding example of a type of building, architectural or technological ensemble or landscape
which illustrates (a) significant stage(s) in human history;
5. To be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative
of a culture (or cultures), or human interaction with the environment especially when it has become
vulnerable under the impact of irreversible change;
6. To be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and
literary works of outstanding universal significance. (the committee considers that this criterion should
preferably be used in conjunction with other criteria);
7. To contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance;
8. To be outstanding examples representing major stages of earths history, including the record of life,
significant on-going geological processes in the development of landforms, or significant geomorphic or
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physiographic features;
9. To be outstanding examples representing significant on-going ecological and biological processes in the
evolution and development of terrestrial, fresh water, coastal and marine ecosystems and communities of
plants and animals;
10. To contain the most important and significant natural habitats for in-situ conservation of biological diversity,
including those containing threatened species of outstanding universal value from the point of view of science
or conservation.
World Heritage Convention of 1972

The World Heritage Convention of 1972, adhered to by 192 countries, aims to protect cultural and natural
heritage across the world.
There are presently 1,052 World Heritage sites in 165 countries, of which 814 are cultural sites, 203 natural
and 35 mixed; 55 more properties are on the in danger list.
Picture Credit: http://img.etimg.com/photo/54757433/1.jpg

The WHC, however, has received flak for its bias toward Europe and North America, with these two regions
being home to nearly half of all World Heritage sites.
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Indias World Heritage Sites

India, which ratified the Convention in 1977, has 27 cultural World Heritage sites, seven natural sites and one mixed
site. Among the cultural properties are the Taj Mahal, the monuments of Hampi, the churches and convents of Goa,
Jaipurs Jantar Mantar and the Mountain Railways of India, which include the Darjeeling, Nilgiri, and Kalka-Shimla
railway networks.
Natural sites include the Sundarbans in West Bengal, the Kaziranga and Manas National Parks in Assam, and the
Western Ghats. Sikkims Khangchendzonga National Park, which was included this year, is the sole mixed site.
While there are four times as many cultural sites in India as natural, the latter are much larger in area. India has the
sixth largest number of World Heritage sites. Italy is on top with 51 sites.
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P.S. Tomorrows DNA will be on Why monuments would be worse off without the World Heritage status
and related issues.
Does UNESCO inscription play a significant role in tourism destinations performance? Also discuss the
UNESCOs role in relation to protecting the world heritage site.
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IAS baba
21/10/2016
Archives
INDIAN HERITAGE AND CULTURE
TOPIC:
General Studies 1
Indian culture will cover the salient aspects of Art Forms, Literature and Architecture from ancient to
modern times.
General Studies 2
Why monuments would be worse off without the World Heritage status
UNESCO defines a WHS as a place or environment of great significance or meaning to mankind. It may be a living
urban city or a rural settlement, a natural landscape (an underground cave, for instance), a forest or a water body,
an archaeological site (where excavations have revealed relics of the past) or a geological phenomenon.
Thus, it could be a natural site, a cultural site (which would be a traditional man-made settlement representative
of a culture or cultures resulting from human interaction with the environment), or a site thats a mix of both.
The largest number of World Heritage sites are in Italy (49) and China (45).
Note: Nations can submit no more than one nomination per year and competition is keen. To evaluate each years
crop of nominations, UNESCO relies upon expert evaluations by the International Commission on Monuments and
Sites (ICOMOS).
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Concerns over the impact of tourism on World Heritage sites

The increased tourist flow also has a flip-side. The Taj Mahal, the countrys most popular monument which became
a World Heritage site in 1983, attracts one in every four foreign tourists visiting India.
Taj Mahal is recently ranked as the fifth most popular landmark based on travellers reviews and ratings. The list
was topped by Machu Picchu in Peru.
Abrasions and the deposit of body oils are causing damage to the structure. Pollution has also been a worry
for conservationists.
The effect of bringing people to a location unequipped to deal with the consequences of tourism seriously
undermines the World Heritage programs altruistic beginnings and goals.
However, the government is yet to take a call on limiting tourist flows based on a report submitted by the National
Envrionmental Engineering Research Institute which looks at the impact of different levels of tourist footfalls.
Concerns with funding

World Heritage tag does not necessarily mean more money for these sites.
Between 1983 and 2008, India received less than a million dollars from the World Heritage Centre (WHC) in
financial assistance. Since 2008, India has not sought any funds.
For 2016-2017, the World Heritage Fund has $5.9 million at its disposal. However, it falls far short of covering the
whole cost of implementing the Convention.
In other words, money is far too little to protect the worlds heritage and priority is given to the endangered sites.
In addition to the World Heritage Fund, assistance may be called forth from international and national
governmental and non-governmental organizations and private bodies and individuals.
For instance, the Ajanta and Ellora Caves, which are also World Heritage sites, have received international financial
assistance. The Japanese Bank of International Co-operation (JBIC) extended loans worth Rs 350 crore to the
Indian government for conservation works and creating infrastructure for tourists at the caves between 1993 and
2013. But such instances of financial support are rare for Indian World Heritage sites.
Commentators have criticized that there are instances of bureaucratic wrangling, underhanded deals for money and
influence between the Funding Committee and the Member States. They have begun to question whether
UNESCOs position in international preservation has diminished significantly from the gold standard.
Also global funds may not be worth the effort required to get them, given the laborious, multi-step clearance from
the government.
Therefore, effective funding and radical changes is needed if the UNESCOs WHC is to remain an effective
conservation tool.
However, it is quite evident that sites with World Heritage Tag get preference from the government over their peers
without the honour.
For instance, the ASI spent Rs 1.4 crore on Elephanta in 2015-16, nearly twice as much as it spent on the Kanheri
Caves in Mumbai, a collection of over a hundred caves dating back to the 3rd century BC. The Kanheri Caves are
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not on the World Heritage list.

Why monuments would be worse off without the World Heritage status?
World Heritage sites are in the ASIs top category of monuments and they are first priority. Sites with World
Heritage Tag get preference for funding from the government over their peers without the honour.
The biggest upshot of the World Heritage status is the rise in tourists at the site, especially those from other
countries.
For instance, in 2015-16, Elephanta had 7.2 lakh Indian visitors, more than double the arrivals at Kanheri. In the
same period, Elephanta got 36,570 foreign tourists, more than seven times the figure at Kanheri. When foreign
travellers plan their itinerary, this (World Heritage status) makes a huge difference.
Countries will have to identify sites they want considered for the World Heritage status, and this has led to criticism
that some properties of real cultural or natural significance may be ignored. A country will have to first put its
prospective sites on the tentative list and then decide which of those it wants to nominate for inclusion on the World
Heritage list. India presently has 44 properties on the tentative list, with some having been on it since 1998. The list
also has cities like Ahmedabad, Jaipur and Delhi.
Once a site is inscribed on the World Heritage list, it has to follow the monitoring guildelines of the WHC. All
countries will have to mandatorily submit a report to the WHC on their sites every six years, and the WHC
assesses them.
If a site faces threats to its conservation and the threats are not addressed, the WHC could put it on the list of sites
in danger. Only after the country has done enough will the site be taken off the list. But if the country does not act,
the site could then be delisted.
The process to remove a site from the danger list is a collaborative effort between the country concerned, the
advisory bodies, the World Heritage Centre at UNESCO, and sometimes other countries who may provide funding
or technical support.
Concerns over protecting the WHS

The WHC has come in for criticism for failing to protect sites like the Bamiyan Valley in Afganistan, where
Buddha statues were destroyed by the Taliban in 2001, and the remains of the historical cities of Palmyra in
Syria and Hatra in Iraq, both of which were damaged by the Islamic State terrorists.
The Manas National Park in Assam, which was inscribed in 1985, bore the brunt of the Bodo insurgency, which
caused a sharp fall in wildlife populations. The site was put on the danger list in 1992. The site was taken off the in
2011, eight years after the Bodo Accord was signed. Rhinos were reintroduced in Manas from the Kaziranga
National Park, another World Heritage site, and the Pobitora Wildlife Sanctuary. Manas is presently home to 28
rhinos and 25 tigers, among other animals.
An academic who has spent time researching at Manas and Kaziranga, says the World Heritage status is nothing
more than a brand tag. The government is not bound to give any more money because of it and the governing
mechanism is according to the Wildlife Protection Act.
The WHC opened its first natural heritage management and training centre at the Wildlife Institute of India,
Dehradun, last year.
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Concerns over Anthropogenic activities

Indias three major natural World Heritage Sites the Western Ghats, Sundarbans National Park and Manas Wildlife
Sanctuary are facing threats from harmful industrial activities like mining.
Activities such as mining, illegal logging, oil and gas exploration threaten 114 out of 229 natural World Heritage
sites, including Sundarbans known for iconic Royal Bengal tiger, Western Ghats, one of the top biodiversity hotspots
in the world, and the Manas Sanctuary in Assam, home to many endangered species including Indian rhinoceros.
While ecology of Western Ghats covering six states Gujarat, Maharashtra, Goa, Karnataka, Tamil Nadu and
Kerala is threatened by mining and oil and gas exploration, Manas Wild Life Sanctuary faces threat from dams
and unsustainable water use.
Sundarbans in West Bengal and neighbouring Bangladesh have been hit by various activities including
unsustainable water use, dams, wood harvesting, over-fishing and shipping lanes.
These sites are recognised as the worlds most important protected areas like Indias Great Himalayan National
Park and Kaziranga National Park.
The Western Ghats supports the single largest population of endangered Asian elephants and vulnerable Indian
bison.
These iconic places face a range of threats, including climate change. Removing pressure from harmful industrial
activity is therefore critical to increase the sites resilience.
According to International Union for Conservation of Nature, which helps the world find pragmatic solutions to most
pressing environmental and developmental challenges, natural World Heritage sites are not just important
environmentally, they also provide social and economic benefits.
Two-thirds of natural sites on the UNESCO World Heritage List are crucial sources of water and about half help
prevent natural disasters such as floods or landslides, according to an IUCN report.
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The way ahead:

Sustainable tourism programme, involving stakeholders or interested parties, including government agencies,
conservation and other non-governmental organisations, developers and local communities in planning and
management is of paramount importance.
UNESCO must have mechanisms with which to effect real change when governments do not comply with the basic
premises of preservation.
Member states should no longer be allowed to submit their own nominations for inclusion directly to the Committee.
Several independent groups, comprised of anthropologists, archaeologists, ecologists, and others, should research
and recommend worthy sites to the World Heritage Committee. This extra layer of vetting will help to quell extensive
lobbying and bartering by potential host countries on behalf of their sites.
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The World Heritage program must bring in money from various sources in order to fund its programs. As it stands,
corporations and philanthropists are hesitant to sink money into UNESCO because of its extensive bureaucracy and
lack of transparency. If the World Heritage Committee can reassure potential donors regarding the exact use of their
funds, it will go a long way toward gathering the capital necessary to carry out the programs mission. At the same
time, an influx of new potential donors will ensure that the program is not pressured to compromise on its goals by
organizations that use money as leverage for political and economic influence.
The creation of the World Heritage Convention was a significant step toward recognizing and preserving the
greatest cultural and natural aspects of the world. However, its implementation has derailed, and the World Heritage
program needs to realign its procedures with its goals.
Does UNESCO inscription play a significant role in tourism destinations performance? Also discuss the
UNESCOs role in relation to protecting the world heritage site.
Discuss the benefits of a site getting awarded as World Heritage Site by UNESCO? Also discuss some of the
concerns faced by World Heritage Sites in India with suitable examples.
Related article:
World Heritage and Indias World Heritage List
NATIONAL/ECONOMY
TOPIC:
General Studies 2
Functions and responsibilities of the Union and the States, issues and challenges pertaining to the
federal structure, devolution of powers and finances up to local levels and challenges therein.
General Studies 3
and employment.
GST Council meet- Issues and way ahead

In news: A two day meeting of Goods and Services Tax (GST) Council concluded recently with no consensus on
GST rate and other issues. We will now briefly look into the issues and further course of action sought to be taken.
What is GST Council?
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According the GST Bill, the President must constitute a GST Council within sixty days of the Act coming into
force.
The GST council is headed by Union Finance Minister and comprises finance ministers or other
representatives of states.
The Council will make recommendations to the Union and the States on important issues related to GST, like
the goods and services that may be subjected or exempted from GST, model GST Laws, special provisions
for certain States, etc.
The decisions of the GST Council will be made by three-fourth majority of the votes cast. The centre shall
have one-third of the votes cast, and the states together shall have two-third of the votes cast. Thus, neither
the states together nor the Centre alone can change the GST.
Tasks done till now
The GST Councils first meeting in September had finalised area-based exemptions and how 11 states,
mostly in the North-East and hilly regions, will be treated under the new tax regime.
Till now, 6 issues have been settled by the GST Council, including finalisation of rules for registration, rules
for payments, returns, refunds and invoices.
The Centre and states had also reached an agreement on keeping traders with annual revenue of up to Rs.
20 lakh out of the GST barring 11 northeastern and hill states, where the threshold will be Rs. 10 lakh.
The issue of dual control over small traders was resolved but it resurfaced in latest meeting and now it is yet
to be resolved.
New proposals
Slab structure
The finance ministry has proposed a four-slab structure (6-12-18-26 percent) and there is near unanimity on
it.
In 2015, a committee headed by Chief Economic Adviser had recommended a revenue neutral rate (RNR) of
15-15.5% and standard rate of 16.9-18.9% for the proposed GST and a high rate of 40% for luxury goods.
The four-slab structure is seen as the governments way of dealing with opposition demand that the rate
should not go beyond 18% as well as protecting revenues of states.
The higher rate for services under the indirect tax regime is proposed to be 18%, while essential services
such as transportation are proposed to be taxed at 6% or 12%.
However, no consensus as yet has been arrived at it.
State compensation
The GST Council finalised the compensation formula for states for potential revenue loss, converging at an
assumption of 14% revenue growth rate over the base year of 2015-16 for calculating compensation for
states in the first five years of implementation of GST.
States getting lower revenue than this would be compensated by the Centre.
Inflation
The total impact of the proposed rate structure on Consumer Price Index (CPI)-based inflation rate will be (-)
0.06%.
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The inflation impact on constituents of CPI such as health services, fuel and lighting and clothing is estimated
to be 0.56%, 0.05 % and 0.23%, respectively, while for transport it is estimated at (-) 0.65%, education at (-)
0.08 % and housing at (-) 0.09%.
GST rate should not be regressive in nature and be such that the existing revenues of states and Centre are
protected and the impact on CPI inflation is minimal.
Cess on GST
The centre has proposed a cess on the highest slab of 26%, which many states have opposed and tax
experts have criticised.
This cess will be on luxury goods (high-end cars) and sin goods like tobacco, cigarettes, pan masala and
aerated drinks.
Though some term it as a clever move. The states that stand to lose revenue will need to be compensated
and the states that gain are not going to give money for this. Hence, the Centre will then have to resort to this
cess which will cushion the impact on the Consolidated Fund.
Earlier, there was a proposal to subsume all cess levies in the GST, several of them introduced by the
present NDA government. However, now the finance ministry is keen on additional cess than 40% slab
suggested by CEA for luxury and demerit goods.
Administration control over assesses
Earlier, the council had decided that states would have sole administrative control over assesses having an
annual turnover of Rs 1.5 crore. Above that, both the states and the Centre would have control.
The Centre would have sole control over assesses in the services sector right from the beginning till the time
states have a mechanism to monitor service tax assesses.
However, that consensus broke down later as a few states said they also monitor some service taxes even
now, such as entertainment tax and as such should have control over that.
Expert views and opinion
On slab structure
The GST is supposed to be the final step towards simplifying the indirect tax regime. This kind of a structure
will take it back to the pre-VAT era (the regime which replaced sales tax in 2005) where there were multiple
rates within and across states
The only consolation will be that GST rates in the slabs will be uniform across states.
Thus, with this structure, there will be hardly any way forward.
A member of 14th Finance Commission has pointed out that this could also lead to the creation of an
inverted duty structure. (An inverted duty structure is making manufactured goods uncompetitive against
finished product imports in the domestic market as finished goods are taxed at lower rates than raw materials
or intermediate products.)
These multiple tax rates will increase compliance costs as well as administrative costs. More importantly, it
will lead to intense lobbying by industry groups everyone will want to be in the lower tax slab.
The blanket 18% rate is not possible, rather a two-slab structure in the 20-22% range would have been
better. Though one rate is viable but two slabs will be needed to politically sell the tax reform.
Across the European Union the GST has only two rates with the exception of Denmark which has just one
rate.
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On cess
The maximum rate of 26% for demerit or luxury goods may harbour more goods than initially envisaged,
which will make them costlier. Also since cesses would be outside the GST, the present cascading may
continue raising the tax burden.
Other option instead of cess can be increasing the clean energy cess, which is not part of GST, and raising
the rate on gold which is now proposed to be taxed at 4% to 6%.
Also, the tobacco tax is only on cigarettes which constitutes only 11% of the market. The Centre should
seriously consider bringing in other forms such as chewable tobacco, gutka and bidis into the net.
Conclusion
There shouldnt be sub optimal solutions and haste in implementation of GST.
Care has to be taken that items being consumed by upper middle class and rich, which are being taxed at
higher rate presently, should not be taxed at a rate lower than their present tax incidence, while items of
mass consumption should not be taxed at a higher rate.
It is a positive sign that Centre and states did manage to reach a broad agreement on the formula for
compensation to loss-incurring states and a cess over the peak rate to fund the compensation. Now the
hurdle of Administrative Control over tax assesses has to be overcome.
Finance Minister has set November 22 target to resolve all operational issues with State representatives in
the Council so that the rates and implementation modalities could be codified into law and passed by
Parliament in the winter session. And the GST can be rolled out from April 1, 2017.
The GST council can be called a true federal body. Do you agree? Examine.
The GST rate structure is not the sole important factor of GST bill. Many other concurrent issues play an
equally important role in making India an economic union. Discuss.
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IASbabas Daily Current Affairs 22nd October, 2016 | IASbaba
IASbabas Daily Current Affairs 22nd October, 2016

iasbaba.com/2016/10/iasbabas-daily-current-affairs-22nd-october-2016/
IAS baba
22/10/2016
Archives
INTERNATIONAL

interests
India-EU water management cooperation

Recently, a MoU was signed between Indian and the European Union (EU) on water cooperation at the World
Sustainable Development Summit. Both share a vision for a sustainable water management.
Brief of MoU:
The MoU envisages strengthening the technological, scientific and management capabilities of India and
EU in the field of water management on the basis of equality, reciprocity and mutual benefit.
It provides technical exchange on water issues, including on integrated water resource management plans
within river basins and through study visits.
Aims to identify key environmental issues and approaches to sustainable development where exchange of
experiences and cooperation could be mutually beneficial to strengthen and further develop cooperation
between India and EU.
Objective is to tackle the challenges posed by water management in the context of growing population,
competing water demands and a changing climate.
http://iasbaba.com/2016/10/iasbabas-daily-current-affairs-22nd-october-2016/
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Success of the European Union has been observed in distribution of water resources, water pricing, water
use efficiency by encouraging the changes in agricultural practices necessary to protect water resources and
quality, such as switching to less water-demanding crops, etc.,
The EU States have adopted water pricing policies to provide adequate incentives for users to use water
resources efficiently thereby contributing to environmental objectives.
India-EU partnership in water management

India is one of the EUs strategic partners.
Cooperation between the worlds two largest democracies covers many areas, from security, trade and
investment to research and innovation and sectorial cooperation.
The India-EU Water Partnership is a great example of these close ties.
India has 2.45% of the worlds land area, but 17.5% of the population has been going deeper into the ground
for water to sustain itself.
The water and sanitation requirements of its growing population are largely unmet.
Thus, tackling water challenges is a real priority to reach the economic and environmental goals.
Need for water management
In 2015 at United Nations, world leaders adopted clean water and sanitation as the sixth goal of 17
sustainable development goals for 2030.
With the growth of population, the demand of water is also increasing. Drinking water, irrigation and sanitation
are pre-conditions for life and livelihood.
The dire consequences of water unavailability is seen in conflicts between neighbours, states and countries.
As per 2016 United Nations World Water Development Report Water and Jobs that three out of four jobs
worldwide are water-dependent.
Thus, this highlights the importance of managing water on Earth, which is three fourth covered by water!
Water management in Europe

EU has made progress in managing its waters. European countries have well-planned framework of laws and
systems based on the Water Framework Directive adopted in 2000 and the management of river basins,
many of them cross-boundary in nature, by interstate river basin authorities.
This model can be beneficial in India also as India has to overcome many water challenges in a holistic and
integrated way.
To integrate the work of researchers and companies, a European Innovation Partnership on Water is there
which facilitates innovations and supports the further development of the water sector in Europe.
Due to a well-placed water policy, a vibrant water sector has grown in the EU with businesses providing water
supply systems and improving urban wastewater treatment.
The new initiatives is now moving towards a more circular economy, where nothing is wasted and where
materials are recycled and reused as long as possible. This will also boost water reuse and the technological
innovations needed for it.
There are currently more than 9,000 SMEs in the European water sector. They employ almost 500,000
people out of a total working population of 300 million. In India, this corresponds to several million jobs in the
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water sector alone.

Way forward
EU has considerable experience of working with India in water sector in last decade. In Rajasthan, a recently
concluded EU-India State Partnership (Rs. 500 crores) supported the development of Integrated Water
Resources Management policy and its application to 3,200 villages in 11 districts. Many partnerships
between India and EU are expected to be built on these lines.
EU is looking forward to help India in its Ganga Rejuvenation initiative, through quick-win business solutions
based on EU best practices, by developing a consolidated analysis taking into account joint research activities
and identifying key problems and solutions, including innovative European solutions, and by contributing to an
analysis of a possible appropriate governance and legal set-up for the Ganga River Basin.
Another promising field in water management is water research and innovation where EU-India cooperation
has been fruitful, with the application of natural water treatment systems as well as new technologies for the
treatment of wastewater giving several low-cost options.
Also, India is in process of negotiating its participation in the EU Joint Programming Initiative Water
challenges for a changing world which when once finalised, will strengthen research and innovation
cooperation between India, the EU and EU member states in the field of water.
Indias participation in EU Research Programme Horizon 2020 will also be important milestone towards
strengthening India-EU water partnership.
The ultimate aim shall be to achieve the Sustainable Development Goals of the 2030, and provide relief to
millions of people who still struggle in obtaining clean and sufficient water for their families and their crops
every day of their lives.
Water management is once again finding focus with various agricultural as well as water conservation
initiatives. Apart from government initiatives, bilateral agreements are also undertaken in this area. Is it
possible to balance internal and external partnerships or it will be over-lapping? Examine.
Recently, India-EU signed a MoU on water partnership. Before that, Germany is also partnering with India in
its Clean Ganga mission. What is the importance of such partnerships? Discuss.
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Archives
NATIONAL
TOPIC:
General Studies 2
Issues relating to development and management of Social Sector/Services relating to Health,
Education, Human Resources.
General Studies 3
and employment.
Effects of liberalization on the economy, changes in industrial policy and their effects on industrial
growth.
Need for Industrial Revolution in India

In early 2016, the Economic report of the President (US) highlighted the threat from automation to lesser
skilled occupations in manufacturing and services.
Resounding the same threat, the recently released World Development Report by the World Bank said that
up to 69% of existing jobs in India are under threat from automation.
When looked in a macro views, this is not just about displacement of existing occupations but also puts to test
the development model of Asian economy.
The Asian economy which now tries to establish its foothold at centre of global economy had been in the
peripheral due to technological change and colonisation.
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Now, once again with growth of automation in the western world, the Asian model of development might
experience wobble to its position in global economy.
Asia is again at disadvantageous position
The Asian model of development was on the basis of state-supported industrialisation. It focussed on export
orientation by using lower production costs as a competitive edge.
The lower production costs were possible because of the lower labour costs in the early stages and increases
in labour productivity later on.
Along the East Asia, this model with state and region specific variations was successful.
But now, the increasing innovation and dependence on automation will again shift in the favour of owners of
intellectual capital and technology which comes from the western countries. Here, there will be diminishing
returns to the labour in developing countries with onset of automation. (Meaning: Adding more labour will at
some point of time yield lower per-unit returns.)
Thus, this will be disadvantageous to countries like India in Asia, which has large, young working population.
India will need new industrial policy
India will need an updated policy, Industrial policy 4.0, to align itself to new paradigm of industrialisation. India
cannot afford to have business as usual it is more labour based industrialisation.
If so happens, India will be demoted back to a peripheral position in the global economy with a large segment
of its population unemployable or under-employed in the new economic context.
This might lead to terrible socio-economic and political implications.
Thus, it is important to keep the inevitable transformation in mind and create an appropriate policy which shall
be capable of minimising the negative effect of automation. For this, the industry needs to create competitive
opportunities for employment which would require massive resource mobilisation focused on developing the
ability of the working population to absorb new skills.
The new industrial policy will require investment in high-quality skills related to applied science and
technology, engineering, quantitative and social analysis, design and product development.
The shopfloor activities will be still done by humans who would require high familiarity with technology and
analytical abilities. Hence, the workers would need to have educational levels currently available to college
graduates and advanced industrial training institutes.
This means that the industrial policy is closely linked to educational policy.
Education as industrial policy

India is aware of the abysmal state of its educational standards and quality, especially the higher education
system.
The primary education has received full focus of the government but after that in higher education, much has
been left to situations. This has made the Indian higher education perform poorly as well as creation of
inadequate infrastructure. Few stats are mentioned:
Industrial training (mostly basic and outdated) creates only 1.7 million graduates annually.
In next three decades, over 300 million new workers are expected to be added. In that comparison, the
industrial training is appallingly low.
There are around 7 million graduates every year from social and natural sciences. It is unfortunate that many
of them come from poorly run state universities and also, most of them lack applied skills.
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It has been observed that institutional expenditure in universities is largely dominated by staff salaries and
maintenance (85%).
This leaves very little for investment in research and advanced learning modules (5%). This has given rise to
culture of mediocrity and low adaptation to change.
Major tech firms re-train over 80% of their fresh engineering recruits. Now, this re-training which is largely for
low-skill jobs are expected to be overtaken by automation!
In such a scenario, the quality of teaching required for inculcating Industrialisation can be safely assumed to
be absent.
Thus, in this condition, if there is no updated industrial policy, India is set to lose its economic growth run.
Conclusion- Need for change
There is now a requirement of unflinching political will which will be able to radically alter the existing
apparatus of skilling and higher education.
Education is a state subject, hence, a political consensus is a critical challenge. The action plan for tackling
the educational and training challenge will be a long and painful process as huge resource mobilisation will
take place.
Hence, it is difficult but inevitable to bring in together multiple stakeholders of educational sector who dont
have vested interests within the teaching and academic community and rather look forward to work for a
larger goal.
Hence, it requires important interventions like
1. Private Sector involvement
2. Financing the curriculum- innovative ways will be required to finance the development of advanced
curriculum
3. Integration with industrial and applied training
4. Sustainable pool of next-gen teachers and trainers.
5. Combination of ICT-based training with regular classroom teaching and on-the-job training and
creating balance between them.
Each of the intervention will require mission-mode initiatives. Interventions like ICT based training will need
global best practices and thus the industry has to be on board on framing educational policy.
The Skill India programme is good start for the government but it will not be sufficient for the enormity and
complexity of the industrialisation issues. It has to be understood that skilling people and educational reforms
are two separate initiatives with little actual overlap. Skill India scheme wont solve the poor education
standards.
Thus, the first step is recognising the enormity of the challenge, second is to integrate the industrial
development and available financing options and then re-designing them with a skilling and higher education
focus. This would lead to formation of various action plans.
The ministry of finance and Ministry of human resource development should start a dialogue on developing
the roadmap for an Industrial Policy 4.0 because the new industrial policy will be focussed on making Indian
human resources ready for the next level of industrialisation.
This is a long and difficult path but if not taken, there is a risk of not being able to maintain the economic
growth in the country and after automation takes over manpower jobs, India might suffer once again from
under-development and under-employment.
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What is automation? Is it a threat to developing countries? Critically examine.

Technologies like Automation, artificial intelligence are slowly taking over human jobs. Is this an alarming
situation? What should be done to prevent robots from ruining human lives and livelihood? Discuss.
INTERNATIONAL

India and its neighborhood relations
affecting Indias interests, Indias interests
interests, Indian diaspora
Important international institutions, agencies and fora- their structure, mandate
International North-South Transit Corridor (INSTC)
Transit Corridors
Irans geographical location and proximity to India, make it an ideal transit hub for reaching Russia and CIS
countries. The country is politically stable. It is also a fast growing economy. Its GDP is expected to grow by 5 % this
year. Lifting of sanctions has made it easier to do business with Iran.
There are multiple axes along which International North-South Transit Corridor runs northwards from Bandar
Abbas port. (Locate these ports and places in your Atlas)
Amirabad port on the Caspian Sea, and Inchebarun crossing on Irans land border with
Turkmenistan, are connected by rail-road to Bandar Abbas.
Inchebarun railway crossing was inaugurated by Presidents of Kazakhstan, Turkmenistan and Iran in
December 2014.
Bandar Abbas is connected with Astara port on the western fringe of Irans Caspian sea-shore by road;
the railway line has a gap between Rasht and Astara.
There is rail connectivity between Bandar Abbas and Mashad, and Sarakhs, in the north east on Irans border
with Turkmenistan. Thus considerable infra-structure already exists.
Do you know?
In 2014, a trial run was also conducted by Federation of Freight Forwarders Association of India (FFFAI) under
the aegis of Department of Commerce, GOI. Two containers were sent north to Astara port and Amirabad port
from Bandar Abbas by road.
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Irans Caspian Sea ports of Astara, Bandar Anzali and Amirabad are connected with the Russian port of
Astarakhan. There is a railway line from Astarakhan to Moscow. This route will save an estimated 40 % in time, and
30 % in cost over the traditional route from India, which goes around Europe to St. Petersberg and Moscow.
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Iranian ports are similarly connected with Kazakhstan port of Aktau. Kazakhstan participated in development of
Amirabad port in Iran as an outlet for its wheat exports.
Economic importance of INSTC

According to a study done by Federation of Freight Forwarders Association of India (FFFAI), INSTC will reduce the
distance from JNPT port in Mumbai to Moscow via current route from 8,700 nautical miles to 2,200 nautical
miles and 3000 km (over-land).
In terms of cost, this will reduce the freight cost of a 20 feet container from USD 1400 to USD 1250. The transit
time will be reduced from 32 -37 days to 19 days.
INSTC will also bring enormous saving in time, and cost, for transit to CIS countries through Iran. (Existing
routes either go eastward to China and then loop back westward to CIS countries. The alternate route through
Georgian port of Poti is also too long.)
Absence of a direct route is one of the factors behind the rather small trade volume between India and CIS
countries.
Russian and CIS economies together have GDP of more than 1.6 trillion dollars.
Global imports of CIS countries from all sources exceed USD 67 billion.
Indias share in their total import basket is a miniscule USD 362.5 million or 0.54 %. In case of Russia, while
its global imports are USD 193 billion, imports from India account for only USD 1.587 billion or 0.82 %.
The break-up is given in the table below:
Transit Trade
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Transit trade continued during the sanctions period; there were no sanctions on the transit trade per se. Exports
routed through Dubai accounted for much of the north bound traffic through Iranian ports on the Caspian. Bandar
Anzali also receives machinery, wood and steel from Russia.
Iran is also being used as a transit hub by member States of Economic Co-operation Organisation (ECO). This is
a regional grouping of countries. This includes trade along east west axis from Turkey to Pakistan and CIS
countries. Ashgabad Agreement signed between Iran, Oman, Uzbekistan, Turkmenistan and Kazakhstan will also
contribute to increasing transit trade.
However, the volume of transit trade through Iran is low. (Transit trade through Iranian ports was 7.4 % and
7.09 % of the total traffic). It should pick up as insurance, banking and shipping arrangements are normalized
following lifting of sanctions.
Iran after the Sanctions
Lifting of sanctions should make it easier to do business with Iran. This will boost transit trade as well.
Payment for Iranian leg of the transit, and insurance, were problems during the sanctions period. These issues can
be resolved now that sanctions have been lifted.
This will make it possible to have single set of documents for the entire journey from India to Russia or CIS
countries. Direct payments will bring down transaction cost.
International North South Transit Corridor begins in Iran.
Iran is a stable country, and has fast growing economy.
According to Economist Intelligence (EIU) report of August, 2016, Iran is expected to record the fastest
growth in the Middle East and North Africa from 2016 till 2020.
This year, Irans GDP is expected to grow by 5 % despite low oil prices. Iran has trade surplus as well as
current account surplus.
Recent OPEC meeting in Algiers exempted Iran, Libya and Nigeria from production cut, while agreeing to overall
reduction in OPEC ceiling. The Iranian government plans to recover its share of crude production in OPEC of more
than 4 million barrels a day.
While oil export constitute a major share of Iran Governments revenue, its dependence on oil revenues is less than
other countries in the region. It is a diversified economy.
Banking channels with Iran are opening up. Already, number of EU banks have resumed operations with Iran. While
US dollar payments are not possible under the US sanctions, there is no sanction on payment in Euro, Japanese
Yen, Swiss Franc or any other currency.
Chabahar
While Bandar Abbas port is the main port serving International North South Transit Corridor, Chabahar port could
also be linked to this route, once Chabahar-Zahedan rail line is built. Zahedan is linked to Baff railway junction to
the west, which is connected with Bandar Abbas in the south, and Mashad and Sarakhs in the north east of Iran.
An MOU was signed by IRCON during PM Modis visit to Iran for building this sector of the railway line.
It is preferable that the entire Chabahar-Zahedan-Mashad rail corridor is completed. This will provide a direct,
and shorter, access to northern Iran, than Zahedan-Baff-Mashad railway line. Mashad is already connected to
Sarakh on Iran-Turkmenistan border. Once the goods reach Turkmenistan, they can move into Central Asia, which
has a very well developed railway system.
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One Belt One Road (OBOR)

Iran is discussing projects under One Belt One Road initiative. China has already built a 6,000 km railway line from
Eastern China to northern Iran. To the extent, OBOR contributes to building infra-structure, it will facilitate trade.
There should be no conflict between OBOR and INSTC. The two could be mutually complementary. Traffic flowing
along INSTC can use OBOR infra-structure and vice-versa.
Way Forward
There is a need to improve infrastructure within Iran to boost transit trade. This will involve completing Rasht-Astara
railway line. This will also require upgrading Bandar Abbas Amirabad and Bandar Abbas-Inchebarun rail corridor.
To make full use of International North-South Transit Corridor, India would also need to sign TIR (Transport
Internationaux Routier) and COTIF (convention concerning international carriage by rail). These are conventions
regulating road and rail traffic.
There is a need to increase shipping lines operating directly between Indian ports and Iran. Shipping Corporation of
India (SCI) should start a direct shipping line. This is needed particularly for Chabahar port, which does not have
any regular shipping line.
During PM Modis visit to Iran, financing to the tune of USD 1.6 billion was promised for Chabahar-Zahedan railway
line. This commitment has to be followed with negotiation, and implementation, on the ground. Eventually, the
railway line will need to be extended to Mashad also.
Trade routes bring development. Improved connectivity will benefit all countries of the region.
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In short, it is time for India to put more weight on the effective implementation of its Connect Central Asia policy
through appropriate institutional mechanisms. This will improve its political and economic partnerships with Central
Asia countries, including Afghanistan, and will strengthen its connectivity with Eurasian economies. To achieve the
goal of this policy, India should establish an India-Central Asia Forum along the lines of the India-Africa Forum.
India needs to get more proactive in exploiting opportunities to explore new markets and expand its trade with
Eurasia and Central Asia.
Discuss the strategic significance of International North- South Transport Corridor (INSTC) for India. What
are the prospects and bottlenecks for India in achieving the fruits of INSTC?
What is the North-South Transport Corridor? What significance does it hold for India economically and geostrategically?
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Archives
INTERNATIONAL

interests, Indian Diaspora.
India and its Foreign Policy

Need for changes in foreign policy
The present day geopolitical world is continuously evolving and relationships, multilateral or bilateral, and
alignments are neither permanent nor consistent. Although India has been making necessary changes in its foreign
policy by pursuing a robust and an aggressive approach, it needs to evolve its strategy in tune with the changes
taking place across the world. Hence, a few key aspects those have to be kept in mind while making these changes
are as follows
Comprehensive consideration of all relevant aspects,
Systemic, national and international decision making factors and
Coherent and balanced policy approach
Role of Multilateral Groupings

The relevance of multilateral groupings, both old and new, continues to be very high. These multilateral groupings
such as NAM(Non Aligned Movement), SAARC (South Asian Association for Regional Cooperation), BRICS (Brazil,
Russia, Indi, China, South Africa) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
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Cooperation) are indispensable and how a nation deals with these and the importance that it gives to them is very
critical. Even if some of these institutions are not as significant as they used to be, still how they are dealt with is
important.
Indias Approach towards Multilateral Groupings
Since the world is gradually moving towards exchange politics and certain groupings are losing their relevance,
India is seeking membership of various new institutions such as the NSG (Nuclear Supplier Group), Wassenaar
Agreement (on Export Control for Conventional Arms and Dual-use Goods and Technologies) and full membership
of organisations such as SCO (Shanghai Cooperation Organisation).
However, India needs to assess the utility of older groupings, of many of which India has been a founder member, in
a very careful manner before discarding them completely and India should attempt to have its presence at as many
groupings as possible.
Relevance of NAM and SAARC
Even though the world is shifting towards strategic alignment from non alignment, NAM should not be written off
completely. Its contemporary relevance is as follows:
Continued relevance for the Third World Nations
Acts as an alternative stage for presenting different opinions
For India, it is important for countering the aggressive growth of China
SAARC
Unlike NAM, SAARC holds greater significance for India and it is like an anchor of the SAARC. Undermining SAARC
solely due to the Indo- Pak crisis is not advisable and will lead to letting go off benefits of a bigger picture.
BRICS and BIMSTEC cannot be an alternative to SAARC because of the following reasons
Growing influence of China in the region
The increasing proximity between Russia and China and weakening of the Russia India China trilateral
Deteriorating economic conditions in Russia, Brazil and South Africa
Changing Equations Changing Foreign Policy

India needs to ensure that various changes in its foreign policy are not just isolated steps which bear only short
term fruits of marginal importance.
Signs of such instances can be seen in India USA relationship which was not at a similar high as it is now and India
Russia relationships are probably at their lowest today. As a result of such an approach India is also witnessing
increasing ambiguities in its neighbourhood and losing out on benefits it could have gained from the Russia India
China trilateral.
Way Forward
India needs to ensure that it does not see the world through a very narrow lens of terrorism only. It needs to focus
on numerous other matters of global concern. India needs to focus on accelerating its economic growth and human
resource development.
Connecting the dots
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As the world moves from non alignment to strategic alignment, discuss the contemporary relevance of NonAligned Movement (NAM) and South Asian Association of Regional Cooperation (SAARC)
Along with coherence and balance in policy, it is essential that foreign policy has to evolve in line with the
changes taking place across the globe. Highlight how Indias foreign policy has been in line with the above
criteria and suggest necessary changes which India still needs to incorporate in its foreign policy.
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SECURITY/NATIONAL
TOPIC:
General Studies 3
Linkages between development and spread of extremism.
General Studies 2
Malkangiri killings: What is happening in Maoist affected areas?

In news: In a joint operation led by anti-Naxalite units of the Andhra Pradesh and Odisha police on the OdishaAndhra Pradesh border, 28 members of Communist Party of India (Maoist) were killed. It is said that villagers were
the informers which led to the success of the operation. Are Maoists losing their ground?
Malkangiri:
It is a rugged, forested terrain known as the cut off area where a cluster of some 150 villages are separated
from the mainland by two reservoirs that the Maoists had made their home for over a decade now.
It is situated in the tri-junction of three states Andhra Pradesh, Odisha and Chhattisgarh. Here the state was
practically absent and the Maoists did as they pleased.
The densely forested area made it possible for the Maoists to roam freely from one state to the other even as
it made it difficult for security forces to enter the area.
It was in 2008, when 38 personnel of Greyhounds, the elite, anti-Maoist unit of Andhra police were killed.
Following closely, the Red ultras blew up an anti-landmine vehicle, killing 17 paramilitary personnel on the
spot.
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But today, there is a dwindling support to these Maoists which is evident from a progressing 918 metre bridge
over river Gurupriya, which was opposed by Maoists.
Once this bridge is completed, it would connect the cut off area to mainland Malkangiri by road, making it
easier for security forces to reach there the main reason the Maoists have opposed it all these years.
This turn around in weakened support to Maoists is witnessed because of steadily shrinking support of the
local tribals.
Disillusionment with the Maoists, coupled with the mass outreach programme launched by Malkangiri police
has seen scores of Maoists surrender and hundreds of their supporters and sympathisers joining the social
mainstream in recent months.
The recent encounter is also said to be because of inputs from these villagers that security forces were able
to plan an operation.
Not long ago, Maoists were active in as many as 18 of the 30 districts in Odisha. But with their footprints
steadily vanishing from most of these areas, including the Narayanpatna and Bandhugaon areas in
neighbouring Koraput district, the cut off area in Malkangiri remained their sole stronghold. Once this area is
freed from their clutches, Maoists would have a tough time finding a foothold in Odisha.
The status of Maoists

Apart from the military setbacks, the Maoists are today diminished politically as well. One of their top tribal
leaders, Sabyasachi Panda, deserted them in 2012.
The surrender of Maoists tribal cadres in Narayanpatna in Koraput district have set the Maoists on the back
foot in southern Odisha.
For a while it seems that Maoists are losing ground in terms of popularising their left-wing extremism. The
reasons could be
Leadership crisis: The government policy of targeting top Maoist leaders which has disturbed the
political hierarchy of the outfit. Many leaders have been arrested or surrendered or killed.
Differences within cadres: differences within the central committee (CC) and the leaders in the state
committees, regionalism in the party, ideological differences etc.
Implementation of two-pronged strategy development programmes and police action in Maoistaffected areas) by the Centre.
Choking the supply the governments tactic of choking materials supply, funding and source of
weapons has affected the organisational expansion and capability of the outfit.
Anti-maoist movement the degradation and criminalisation of the Maoist movement gave rise to an
anti-Maoist movement in some pockets, especially in Chhattisgarh, Jharkhand and Odisha.
Less development though they claim to protect the tribal areas (jal, jungle, jameen) but have failed
to develop them.
Other factors attractive terms for surrender, recruitment of tribal and rural youth in the Indian army
and paramilitary forces, job opportunities in private companies, etc. adversely affected the cadre inflow
to the outfit.
When the recent killings occurred, a plenary was believed to be organised by Maoists to examine ways of
getting out of the current organisational and political chaos. This information is said to be shared by the
villagers with the security forces which is a big blow to their presence in the region.
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The Maoists have not been able to expand themselves in plains as they are essentially a guerrilla force and
thus have been limited to the remote and hilly tribal belt of central India.
Picture Credit: http://www.malkangirizp.odishapr.gov.in/documents/1089945/0/malkangiri-river-map.gif?

t=1373364954298
Internal security threat
In 2006, former PM Manmohan Singh had identified the Maoist movement as the biggest internal security
threat. He clearly said that the deprived and alienated sections of the population forms the backbone of the
Maoist movement in India.
This statement came after unification of various Naxalite outfits into one party which is called Communist
Party of India (Maoist) in 2004. These parties had consolidated themselves in some districts by taking
advantage of the weak presence of the welfare and administrative agencies.
But, even they failed to administer their areas well as they resorted to militarism by subordinating political
activism. Because of this, they did little for tribal empowerment. Instead, they settled for a war of attrition
against the state. Today, CPI (M) is designated as terrorist organisation in India under Unlawful Activities
(Prevention) Act.
Even the state has faltered on its part over a decade as it pursued dual strategy of containing the military
threat of the Maoists and expanding its developmental footprint in these districts.
Though the Maoists have been driven away from undivided Andhra Pradesh into parts of Chhattisgarh,
Maharashtra and Odisha, the dual strategy of state has been unevenly implemented and generated mixed
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results.
Conclusion
It is not certain that after such attacks by the states, if the Maoists will give up their insurgent goals and
instead join the political mainstream to pursue their avowed ambition of guarding the interests of the tribal
poor.
Hence, the government has to become more active and increase the intensity, quality and quantity of
development and welfare programmes to slowly bring more Maoist affected areas into mainstream
development. However, greater political will is required to address the developmental shortcomings.
But, the government has to take care that the tribal culture, values and their tradition is protected while
aiming to develop them. They opposed the state earlier for its interference with its culture and they felt
threatened. Now, the state has to cautiously tread on this path.
Also, it has to be assured that private companies in these mineral rich areas dont exploit the locals else they
will rebuke further and may not cooperate with the government or the private companies.
Why Maoists are considered biggest internal security threat to India? Examine.
Do you agree that getting tribal in mainstream will lead to loss of their identity and it will be a regressive step
in keeping India a heterogeneous country? Analyse.
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Archives
NATIONAL

Issues and challenges pertaining to the federal structure, devolution of powers and
finances up to local levels and challenges therein.
Reviving decentralisation in Indian planning

For long, the Planning Commission, which was formed by an Executive order (thus could be easily
abolished), formulated five year plans for India. It was considered virtually an executive arm of the Union
government.
In contrast to it, a District Planning Committee (DPC) stood neglected for which there is provision in
Constitution of India under art 243ZD.
DPC, a constitutional institution is mandated to prepare a draft development plan for the district as a
whole with a focus on resource endowments, environmental conservation, infrastructural development and
spatial planning.
Today, the rapid urbanisation has made difficult to make a sharp rural/urban differentiation at the district level
and integrated planning has become a sine qua non (essential condition).
The constitutional goal to create institutions of self-government at the local level is tasked to plan for
development economic and social justice.
However, the operationalization and effectiveness of these constitutional goal depends on meaningful
response of the Centre and the State governments to the institutional architecture implied in the 73rd and
74th
Thus, India needs multi-level development and planning so as to cater to its diverse population.
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Reviving the committees

In most States, there does not exist decentralised governance with DPCs acting as the functional hub.
The Devolution Report 2015 (Ministry of Panchayati Raj) says that several States have not constituted DPCs
and thus there is no scope of preparing an integrated district plan.
Although 12 States have reported that they had formulated integrated district development plans but most of
them may not stand professional scrutiny and citizens approval.
Now with the arrival of NITI Ayog, it has to be seen if it will try to revive District Planning Committees and
institutionalise the preparation of district development plans.
NITI Ayog has outlined its functional responsibilities where it proposed to develop mechanisms to formulate
credible plans at the village level and aggregate these progressively at higher levels of government.
This is possible only through a critical review of the functioning of the institutions of decentralised governance
in every State.
The sixth report (2007) of the Second Administrative Reform Commission (ARC) outlines in great detail ways
to make the DPC a viable component in the process of decentralised planning. But, as the planning
environment reveals- no one bothered to take care of this ARC recommendation.
No Union ministry has made any scientific scrutiny nor reported to the nation about what happened to the
constitutional mandate of decentralised planning and local democracy during the last 22 years.
Reviving federalism
Most of the SDGs and the 169 targets related to them are best implemented only as part of decentralised
governance.
Also, Local governments (LGs) have a key role in delivering several public goods and social justice.
The nodal agency for UN sustainable development goals (SDGs) in India is NITI Ayog. So, here the NITI Ayog
may examine the possibilities of giving a new lease of life to local governments.
India is a federation with extreme diversity in resource endowments, poverty incidence, development
attainments and potential for growth and its regional disparities are widening.
Thus, there is a need for social intervention else the economy which is committed to market-mediated
growth can only accentuate divergence. This can become possible with decentralised planning.
The Centre and the finance commission are expected to play a key role in ensuring spatial equity in Indian
federation.
But these institutions have failed in their responsibilities which is revealed in a recent study that covered 19
major States involving 96% of the population. Using criteria relating to infrastructure, social services, fiscal
performance, justice etc., it was demonstrated that regional disparities have widened between 2001 and
2012.
The prime rationale of cooperative federalism is to ensure spatial equity. Every citizen, irrespective of choice
of residence, should have minimum public good and quality of life.
Local government and decentralised planning are the avowed Indian mechanisms and strategy to ensure
this.
For a federal polity that is strongly committed to market-mediated resource allocation and economic growth,
the architecture of a viable local governance is to be accepted as part of its national aspirations.
Being indifferent to local governments on the grounds of inexperience or inefficiency is a way of ensuring
centralisation which is certainly not the road to transforming the nation.
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Conclusion
Successful model
There have been success stories too in local development planning. An Integrated District Development Plan
was prepared at the initiative of the District Planning Committee of Kollam district during the eleventh Five
Year Plan.
Over a period of four years, a district plan methodology was evolved that integrated the rural and urban
space through a long process of consultation, debate and discussion with sectoral departments, along with
elected representatives at various tiers of local government.
Major development choices were made through consensus which ensured the feasibility of implementation.
Time to realign to realities
India is extremely diverse and thus every district has to formulate its model of district development outlining
its short-, medium- and long-term perspectives.
In 2008, Planning Commission noted on Kollam initiative that the project gave decision-makers in local
governments, the District Planning Committee and other stake-holders the opportunity to consider and take
decisions in the emerging area of spatial planning and the methodologies developed by it, can be up-scaled
to other districts.
Towards Holistic Panchayat Raj report (2013) leveraged panchayats for efficient delivery of public goods and
services and even it endorsed the replicability and relevance of the Kollam model.
Now the NITI Ayog has to take note of the situation confronting Indian planning and uphold the constitutional
obligation by promoting decentralised planning.
What do you understand by decentralised planning? Critically analyse its need in developing the planning
structure in India.
ECONOMY

India and Ease of Doing Business

What is Ease of Doing Business?
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The World Bank ranks economies on the Ease of Doing Business Index on the basis of regulatory environment
within a country. Whether the same is conducive for starting and operating a local firm or not. The following are the
parameters used by the World Bank to rank the countries:
Starting a business
Dealing with construction permits
Getting electricity
Registering property
Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Resolving insolvency
Indias growth story
The Doing Business Report 2017, which ranks as New Zealand as Number 1, ranks India 130 among 190 countries,
just one rank higher than last year. This is a matter of concern since it shows the worrisome pace of the economic
reforms in India. Even the one rank improvement is because India had been downgraded in the 2016 edition to 131
from 130 earlier. India does not feature on the top 10 improvers list as well, which includes Pakistan as well.
Picture Credit: http://img.etimg.com/photo/55059057/.jpg
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The present government had set a target for India to enter the top 50 in ease of doing business ranking in three
years after breaking into top 100 this year. However, certain areas of concern which still continue to exist and keep
pulling India down the ladder are:
Retrospective taxation
Simpler land acquisition norms
Status quo in ranks in parameters of starting a business and registering property
Delays in litigations in matters of payment of bonus and mining royalties
Lack of labour law reform
The bright spots

The World Bank has identified certain areas where India has shown satisfactory performance. The identified areas
are as highlighted below:
Simplifying tax payments
E-biz portal
Simplifying trade procedures and contract enforcement
Ease in getting an electricity connection, where India has jumped 26 spots and obtained a rank of 26
Electronic system for paying Employee State Insurance Contributions, electronic filing of integrated customs
declarations
Legislative overhauls by way of Goods and Service Tax (GST), Insolvency and Bankruptcy Code and
Companies (Amendment) Act are other ways to move up the ladder.
Special mechanisms for resolving commercial disputes.
Way Forward
India hopes that various reforms being implemented will bear fruits in years to come and also feels that some of the
reforms have not been considered in the report, of which some were not implemented before the cut off date. Apart
from waiting for World Bank to be considerate towards these concerns, for India to shine brighter on this global
platform a few additional steps need to be taken as well.
Put in place a single window mechanism for registering companies
Building a unified database of security interests over movable assets
Improving customs clearances
Upgrading the rules for registering property and digitizing records
Promote role modelling by promoting steps taken by states such as Tamil Nadu and Gujarat who have shown
exemplary performance in promoting investor friendly environment.
Efficiency in the functioning of bureaucracy and judiciary
Connecting the dots
India has set itself an over ambitious target of entering the top 50 in The World Bank Ease of Doing Business
Rankings by 2017. Comment.
What do you understand by Ease of Doing Business? Examine the reasons for a negligible rise in Indias
ranking in The World Bank Doing Business Report 2017 in spite of numerous steps being taken in the recent
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past.
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ECONOMY

Banking Non Performing Assets

What are Non Performing Assets?
As per Reserve Bank of India (RBI), an asset, including a leased asset, becomes non-performing when it ceases to
generate income for the bank. A Non-Performing Asset (NPA) was defined as a credit facility in respect of which the
interest and/ or instalment of principal has remained past due for a specified period of time. NPAs are further
categorized depending upon the time periods for which the payments have been overdue.
Reasons for Non Performance
Gross bad loans at commercial banks could increase to 8.5 per cent of total advances by March 2017, from 7.6 per
cent in March 2016, according to projections by the RBI in its Financial Stability Report released earlier this year
during the tenure of Dr. Raghuram Rajan.
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Picture Credit: http://www.thehindu.com/multimedia/dynamic/02912/28-biz_lead_2912232f.jpg

A few important reasons for the constant increase of NPA are as follows:
Global economic slowdown leading to a reduced demand
Reckless lending by banks during periods of boom
Lack of digitisation of banks and poor data management
Poor quality of due diligence conducted by banks thus leading to poor loan appraisals
Delay in implementation of infrastructure projects due to environment or regulatory hurdles
Wilful defaults and frauds
Recent remedies and their impact

RBI has recently released the following guidelines to ease the pressure on the banking sector:
Limit the lending by banks to corporate borrowers
Restrict the overall lending to large borrowers gradually to Rs. 10,000 Crores by April 1, 2019.
Corporates requiring loans in excess of specified limits will have to reach out directly to the market.
Increased risk weights have been allocated for excessive lending and borrowing.
However, the above guidelines are not being viewed very positively due to the following concerns:
Guidelines, such as allocation of increased risk weights, have added additional pressure on the lender and
the borrower.
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Borrowing from the market can be tough for those companies suffering credibility issues and low investment
ratings leading to slowdown of infrastructure development.
The banks are moving towards alternative areas of credit expansion which have other limitations and
constraints such as risk.
Alternatives investment avenues and limitations

Retail Sector: Lending to the retail sector might not prove to be very fruitful due to low margins leading to
higher risk and poor quality.
Agricultural Sector: Banks are not very enthusiastic in lending to the farmers due to constant loan waivers
given by the government.
Investing beyond the Statutory Liquidity Limits (SLR): This will lead to increase in the fiscal deficit of the
government.
Bond Markets: Investment in bond markets are also restricted due to higher risk involved and limits imposed
by RBI guidelines.
Way Forward
Discipline in case of consortium lending and involvement of executives with sufficient and relevant expertise.
Monitoring and strict scrutiny of utilisation of funds without solely relying on external auditors.
Quality and on the field inspection of projects being implemented by expert branch officials.
Steps should be taken to ensure both responsibility and accountability of lending banks who have taken to
outsourcing.
The role of credit committees sanctioning loans need to be revisited, in terms of increased accountability,
especially in this age of digitisation where loan processing has become centralised. There are hardly ways to
hold them accountable for their work.
Online application procedures do increase the transparency, but they reduce the significance attached to the
branch officials role. Critical processes such as background analysis, risk potential of borrowers are ignored.
The short period of one month or 90 days, used for classifying NPAs, is inadequate to analyse the reasons
for default and assess the genuine requirements of the borrower.
Strict action against wilful defaulters.
Conclusion
There is a need to avoid hasty provisioning and write-offs, for merely reducing NPAs at enormous cost to the entire
system. The regulatory authorities have to play a more proactive role in prevention with more supervisory oversight
on credit management in banks. Lastly, a huge importance needs to be given to training and skilling the bank
executives with relevant skill set.
Connecting the dots
What are Non Performing Assets? Is limiting the lending and borrowing capacity the most appropriate
solution for tackling the problem of NPAs? If not suggest a strategy for overcoming this problem plaguing the
Indian economy.
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NATIONAL

Structure, organization and functioning of the Executive and the Judiciary
Judging the Judges: Is it needed?

In news: Recently, the law department in Gujarat, on the recommendation of the Gujarat High Court, cracked the
whip on 17 judges from various cadres in lower courts, ordering their retirement for unsatisfactory performance.
Background:
The 17 judges, who were ordered to take retirement, were issued notices in past to improve their
performance but their failure to heed to these warnings led to the government taking this drastic step.
As per official of HC secretariat, the state government and the high courts administration are spending Rs. 23 lakh per month on the functioning of a court and if the performance of a judge is not up to the mark, they
are bound to take action against them.
This action of the state suggests that holding judges to performance standards is gaining momentum.
However, the existing system of performance evaluation for the lower judiciary is plagued with various
problems.
What is more worrying is that higher judiciary in India is not subject to any sort of evaluation.
Assessing the judges- India and abroad
India
Lower court judges in India are evaluated through a system of Annual Confidential Reports (ACRs), which are
completed by the senior-most judges of the lower court, and reviewed by the State High Court.
But ACRs are neither filled up regularly nor is the evaluation process transparent.
Concerns about this lack of due process have even reached the Supreme Court, which recently has
summoned the Registrar General of the Delhi High Court to explain why a lower court judge was marked as
integrity doubtful without material basis.
In 2013, the idea for amending and improving existing methods for evaluating judges performance was
floated, when the Law Ministry acknowledged the need for a more scientific method of performance appraisal
of judges.
The Ministry also admitted that there was a lack of uniformity of judicial performance appraisal across States.
However, there has been no significant changes since these observations were made.
A research institute recently surveyed the legal community for its views on judicial performance evaluation
where it found that almost all the surveyed individuals were of the opinion of a system of performance
appraisal of judges, particularly of the higher judiciary.
Most survey respondents believed that such appraisal would lead to greater accountability, transparency and
better and efficient functioning of judges.
Hence, this is an opportune moment to revise existing mechanisms and deliberate on the performance
evaluation of judges at all levels of the judiciary.
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Abroad
USA
The system of periodic assessment of judicial performance, formally called as Judicial Performance
Evaluation (JPE), originated in USA.
Here, the sitting judges were evaluated to inform voters about a judges performance record for retention
elections. The retention elections allowed the public to vote for or against the continuing tenure of judges.
Thus, JPEs became institutionalised over time, and are now regularly followed across the USA, with most
States incorporating provisions for evaluating judges in their constitutions.
Studies of JPE programmes suggest that parameters for evaluating judicial performance may be qualitative
as well as quantitative. These include the rate of disposal of cases by a judge, the quality of judgments and
legal reasoning, knowledge of the law, behaviour towards lawyers in court proceedings, independence and
transparency.
JPE programmes initially tend to use objective criteria to evaluate judges, eventually moving towards more
qualitative criteria when systems have evolved sufficiently to reduce likelihood of bias and subjectivity in
assessment processes.
EU
Here, the European Commission for the Efficiency of Justice conducts a periodic performance review of court
systems of different member states.
This country-wise study collects data on various parameters, including the efficiency of courts in justice
disposal, the costs per case, and the budget of courts.
The outcome of this exercise is called the EU Justice Scoreboard which is published annually and rates the
working of justice systems across member states.
JPE in India?
Judges in India are nominated or appointed through examination processes and not elected as in the USA.
Therefore, JPE programmes here would not work the same way as in the US, where they were formulated to
give voters information on judges before retention elections.
However, studies of JPEs show that besides providing information to voters, these programmes also serve
the purpose of increased transparency and accountability of the judiciary.
A regular review of judicial performance ensures that once appointed, judges are mindful of their
accountability to the institution of the judiciary.
Conclusion
A delicate balance needs to be struck even while measuring judicial performance. Scholars have expressed
reservations that performance evaluations could compromise the independence of the judiciary.
Thus, to avoid this, a JPE programme should be devised by the judiciary itself, instead of government.
The Madras High Court, for the first time, has come out with qualitative as well as quantitative performance
assessment of its judges in 2016.
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As it is was for first time, it was met with mixed reactions from lawyers, some of whom felt that this could
unduly pressurise judges to dispose of cases and encourage indiscriminate disposal rather than delivering
justice.
However, this is precisely the sort of performance evaluation courts should start conversations about despite
the opposition from a section of lawyers.
For this, the first step towards such evaluation should be the objectives of such evaluation, such as improving
quality of justice, pendency rates, and so on.
A joint consultation could be held with stakeholders, including judges, lawyers, academics and members of
civil society to understand how best to initiate such a system in India.
Any codified system that emerges from these discussions, like in the form of guidelines or regulations, must
be reviewed to ensure minimum bias and maximum transparency.
All these steps would help India work towards higher standards and greater accountability in judicial
functioning.
Judges in India have a comparatively opaque way of functioning than in western countries? Do you agree?
Examine.
How can judiciary in India be made more transparent and accountable? Discuss.
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NATIONAL
TOPIC:
General Studies 1
Social empowerment
General Studies 2
performance of these schemes.
Ten years of Domestic Violence Act- What is the progress?

The Protection of Women from Domestic Violence Act (PWDVA) 2005 is a landmark legislation to protect and grant
relief to victims of domestic violence. Let us take a look at how is it faring.
Background:
The PWDVA is first of its kind law in India which came into force on 26th October 2006. For the first time, a
law dealt with private spaces of individualssomething the law had avoided doing until thenalthough
selectively.
The function of the law was simple- address violence against women within the home.
It had a broad definition of domestic relationship which included married women, mothers, daughters and
sisters.
It is acknowledged that domestic violence is widely prevalent but it has remained largely invisible in the public
domain.
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It is a civil law aimed at providing a fourfold support system to women who have suffered violence at home
Residence orders
Custody orders
Protection orders
Monetary relief from a respondent
Before PWDVA, women could only seek recourse under the Indian Penal Code (IPC)sections 304B (dowry
death) and 498A (cruelty by husband or his relative).
The right to reside in a shared household, provided by the law, was considered a huge step towards
empowering women, especially in a society where women often do not own property.
PWDVA enshrines principles of the Convention on the Elimination of All forms of Discrimination Against
Women (CEDAW). This convention was ratified by India in 1993.
CEDAWs 12th general recommendation required the States parties to act to protect women against violence
of any kind occurring within the family, at the work place or in any other area of social life.
Picture credit: http://www.livemint.com/r/LiveMint/Period2/2016/10/28/Photos/Processed/g_DV_2_web.jpg

Domestic Violence definition
PWDVA defined domestic violence for the first time and it did not restrict itself to physical violence, hence kept
up with international definitions.
It includes physical abuse (which is more identifiable and is easier to prove), emotional and sexual abuse.
Threat is also included as a part of violence. Thus, such broad definition was a major breakthrough in
protecting women against domestic violence.
Significantly, PWDVA recognizes sexual violence within the confines of marriage- Marital rape is an exception
to rape under IPC but PWDVA can come to the rescue of these women through protection orders or orders to
stop violence.
Impact of law
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Despite such extensive definitions and provisions, the impact of law has not been remarkable.
It has been noted in many orders under PWDVA that they do not specifically mention the category of sexual
abuse even when alleged.
Not much has changed in 10 years in terms of awareness within the law enforcement agencies and the lower
judiciary.
Many believe that law in spirit has not been implemented. Though the law is useful, the states have failed in
enforcement.
Also, the judiciary still has a long way to go as despite progressive law as the judicial attitudes are still
steeped in patriarchal norms. The judicial narrative on womens rights within marriage in India has been
woefully restricted to lawful wives with little or no attention paid to other women in non-marital relationships.
However, the SC has made significant changes in the law such as:
A wife would be considered an aggrieved person under PWDVA even if she was judicially separated
from her husband.
Adult male is struck down from the definition of respondent. It means that wives or women in
relationships akin to marriages can take legal action against female relatives of their husbands under
PWDVA.
Data from reports
A 2014 study by the United Nations Population Fund and the International Center for Research on Women:
60% of men reported using some form of violencephysical, economic, emotional or sexualagainst their
wife or partner.
Emotional violence had the highest prevalence, with 41% of men admitting that they had used it at some
point on their wives or partners.
National Crime Records Bureau
It introduced a category of offences under PWDVA.
In 2014, there were 426 cases which increased to 461 in 2015.
There were 7,634 reported cases of dowry deaths and 113,403 incidents of cruelty against a woman by her
husband or his relatives in 2015.
Conclusion
From accounts across the board, it is clear that the progress on the law from 2006 to 2016 has been slow.
Though it does not mean that all that had been expected from the law has not been achieved yet.
When the law was passed, it was very futuristic and ahead of time as it sought to collapse the gap between
civil and criminal law.
Also, it sought to move away from the adversarial system of justice and the judge was expected to have more
of a role in an inquiry with the help of protection officers. When this will be done, the victim will get timely
justice which has not been possible in most of the cases till now.
The state government has to prepare a cadre of professionally qualified well-paid protection officers who
could do the kind of outreach work that is required to be done for a woman in distress. The protection officers
have to be allowed to play their role in being the eyes and ears of the court.
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The rights of women and dignity of women needs to be protected for her empowerment and thus, this law
has to be implemented with utmost sincerity by the state.
Despite a well framed law of protection of women against domestic violence, the law has not been effective in
its impact. Explain the causes and suggest way forward.
Violence against women is now taking a dangerous turn with physical abuse not only being one of the
medium. Discuss the role of state in protecting the women and her dignity.
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SOCIAL/HEALTH ISSUE

Issues relating to development and management of Social Sector/Services relating to
Health, Education, Human Resources.
Global TB Report 2016 and India
The Global TB Report 2016, recently released, has revised the estimates for the tuberculosis (TB) burden in India
upwards. The country has 27 per cent of the global burden of incident tuberculosis and 34 per cent of global TB
deaths. As per the 2015 estimate, the number of TB deaths has doubled to 4,78,000 making TB one of the
leading causes of death in India.
As a result the World Health Organisation (WHO) has decided to have the the first United Nations General
Assembly session on the disease on lines similar to HIV-AIDS wherein the member states adopted a political
declaration to fast-track progress in combating the HIV-AIDS epidemic.
Lack of political will has been cited as the primary reason by WHO to hold the special assembly session. There is a
need to mobilise the government machinery effectively and efficiently. As per WHO, the inclusion of Minister of
Health only has not proved to be very effective and hence it highlights the need to include Minister of Justice and
Minister of Finance from the nations with high disease burden such as South Africa, India and Russia.
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Reasons for the rising crisis

The number of deaths caused by TB and the incidence rate had been consistently dropping from the historical highs
globally, but there has been a recent increase uptick that is much larger than previously estimated. In addition to the
failure of political machinery, the other major reasons for this are as follows:
Shortage of drugs
Increasing Multi-Drug Resistant TB (MDR-TB) and Extensive Drug Resistant TB (XDR-TB)
Total Drug Resistant TB acting as an assured death warrant
Inadequate prescription by doctors and inadequate follow up of proper prescription by patients is aggravating
the problem of antibiotic resistance
Disease becoming expensive and difficult to treat
Poor quality serological tests for diagnosis
Delay in implementation of critical programmes under the Revised National TB Control Programme (RNTCP)
such as expansion of the GeneXpert pilot programme, scaling up of drug sensitivity testing, and the
introduction of a child-friendly paediatric TB drug.
Poor quality treatment by medical practitioners
Indias Initiatives Past and Present
Revised National TB Control Programme (RNTCP)

RNTCP was originally started in 1997 and then upgraded to be implemented for the period 2012-2017. It has the
following components:
Inclusion of the private sector
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Integration of HIV-AIDS along with TB eradication

Maintenance of National TB Register to include the details of TB cases
Use of WHO recommended Direct Observation Treatment Short Course (DOTS) and DOTS-Plus
Focus on MDR-TB and XDR-TB
Nikshay
Project Nikshay is a web-based solution for monitoring the effectiveness of RNTCP. The app attempts to make the
notification process simpler to reach more patients and doctors.
90-90-90 Targets
90% reduction in incidence, mortality and catastrophic health expenditure by 2035. This has to be ensured by
reliable data and evidences.
Vaccination
Bedaquiline is being introduced at six tertiary care centres across India and will be given to patients with MDR-TB.
Cartridge-Based Nucleic Acid Amplification Test (CBNAAT)
A revolutionary rapid molecular test which detects Mycobacterium tuberculosis and rifampicin drug resistance,
simultaneously. This test is fully automated and provides results within two hours. It is a highly sensitive diagnostic
tool and can be used in remote and rural areas without sophisticated infrastructure or specialised training.
Way Forward
Diagnosis: The rising menace of TB can be solved by early recognition of people having TB symptoms and put
them on appropriate first line of drugs and there by eliminate it in first instance. The national TB programme has
failed in identifying the people who show early symptoms.
Private Sector: The private sector has a very crucial role to play in checking the the rise of TB. Strict guidelines
need to be followed to report cases of TB to government and private hospitals needs to be penalised for failure to
report early TB cases to government. This will enhance the accountability of the private players.
Technology: Technology has to be introduced and utilized in the most effective manner to ensure early access and
monitoring.
Citizen Awareness: There need to be in place awareness program that let people know as to what constitutes early
symptoms of TB and measures to be taken in a timely manner.
Connecting the dots :

Highlight the causes for rising problem of TB in India and the causes for failure in India to check the rise.
Tuberculosis can be one of the major hurdles in converting the human capital in India to Demographic
Dividend. Highlight the reasons for the rising TB problem and suggest measures to eliminate the problem.
SECURITY/NATIONAL
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TOPIC:
General Studies 2
Effect of policies and politics of developed and developing countries on Indias interests
General Studies 3
Security challenges and their management in border areas
Role of external state and non-state actors in creating challenges to internal security.
Involvement of game theory in declaring surgical strikes

In news: Its been a month since surgical strikes happened across LOC on terrorist launch pads. This has resulted
in continuous firing from the other side of LOC and rising militant attacks which has claimed more lives of Indian
soldiers. This brings forward the question if what could have been in governments mind to declare such strategic
operation.
Indias leadership might have been in dilemma of to speak or not to speak with regard to the recent
surgical strikes.
Hence a question arises if Game Theory the study of decision-making in interdependent situations, i.e.
situations in which the outcomes and the pay-offs of a player (a person, firm, or country involved in the
situation) depend not just on what the player does but also on what others do offer any answers?
In this mathematical model, it defines a game as consisting of a set of players, each with a set of strategies,
and a pay-off (success) table specifying the pay-offs. It means that it will determine the gains and losses
to each player from the adoption of any combination of strategies, one for each player.
The game theorists base their analyses on two assumptions
1. Rational players they aim to maximize their pay-offs.
2. Common knowledge the elements of the game (players, strategies, pay-offs) are common knowledge,
i.e. known to everyone, known to be known, known to be known to be knownad infinitum.
Game theory in declaring surgical strikes
News reports confirm that Indias recent surgical strikes in response to militant attacks in Uri may not have
been the first ones.
The new aspect of this situation is that India has made its retaliation common knowledge by declaring there
has been a strike.
This changes the interaction between the playersthe Indian and Pakistan governments and civil society
and the global leadership.
Response
The announcement now makes it clear to India and the world at large that the Pakistan government knows
there has been a surgical strike.
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This will make Pakistan incumbent to respond which they have done by denying of such strikes taking place.
Next, they have stepped up their militant attacks and cross-border firing which indicates that the response
has begun and will continue.
Pakistan has to act
The declaration and the consequent disapproval of terrorism by world leaders is also a possible tool in the
hands of the political elite of Pakistan in their ongoing power struggle with the military and militants.
This is happening at an opportune time when the present army chiefs tenure is coming to an end.
The reported differences between Shahbaz Sharif (Pakistan politician) and the ISI head indicate that the
politicians have initiated their moves.
No more patience
It signals to the Pakistan public and civil society that Indias patience is running out and it no longer feels the
need for deniability of its counter-terror operations.
This is likely to strike a chord as the people of Pakistan are themselves victims of terrorism.
The triggering of a mood against terrorism in Pakistan depends on its people having the impression that India
has been a tolerant onlooker to past attacks and has acted only when the provocation snowballed to
unbearable proportions.
Impact on Indians
The announcement were supposed to have impact on the Indians who are about to vote in critical state
elections.
Certain results which was not expected (and not appreciable)
The claim by the government that the Indian Army has recognized its strength for the first time through these
strikes is unfortunate.
An army operation is being tried to give extreme political colours which is not acceptable neither a good
example.
Also, the revelations by the opposition that India has engaged in such strikes in the past damages Indias
ability to claim the high ground.
Similarly, the Prime Ministers sympathy for the cause of Baloch separatists, may make Indias alleged
involvement common knowledge but it does so to the detriment of Indias cause in Kashmir.
Conclusion
Amongst various reactions within India, the announcement prompted countries around the world to come out
in the open about their stands on cross-border militancy in Kashmir.
The support of countries such as the US and Russia, though muted, is welcome.
Chinas stonewalling is expected, for instance on the declaration of Masood Azhar as a terrorist, given the US
emerging tilt towards India and Chinas alignment with Pakistan.
Finally, Indias foreign policy has shown its focus where it aims to identify and propagate the fight against
terrorism by collectivising the countries which share the same views as India on counter-terrorism.
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How was game theory utilised by India in declaring surgical strikes across LOC? Explain the varied impacts.
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Iasbaba S October 2016

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04/11/2016

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

IASbabas Daily Current Affairs 1st October, 2016

TOPIC: General Studies 3

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

Why GM Mustard in news?

Picture Credit: http://www.hindustantimes.com/rf/image_size_800x600/HT/p2/2016/02/08/Pictures/govt-maysupport-gm-mustard-ht-delhi_6196d8cc-ce52-11e5-94bd-a06a76346e8f.jpg

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

Should India Ban GM Crops?

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

TOPIC: General Studies 2

Challenges to financial inclusion

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

Accounts have to be operational

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

Uri as inflection point

The die is cast- India and Pakistan

What is the ideal distance between two ports?

IASbabas Daily Current Affairs 1st October, 2016 | IASbaba

India likely to speed up hydropower projects on rivers flowing into Pakistan

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

IASbabas Daily Current Affairs 3rd October, 2016

Cybercrime and need of robust cyber security policy

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

Need of stronger national cyber security policy

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

Digitised records and patient rights

TOPIC: General Studies 3

Air pollution levels up by 8%: U.N. report

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

OPECs roll of the dice

Taking the road less dusty

The SAARC gambit

India and Russia

Mobile phones, access to Net improve socioeconomic status

Bill in bad faith

IASbabas Daily Current Affairs 3rd October, 2016 | IASbaba

Anatomy of The Urban Flood

A new approach for a jobs policy for India

Special governance zones as reform labs

RBI shouldnt overlook the savings slide

Time for the stick- Income Declaration Scheme

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

IASbabas Daily Current Affairs 4th October, 2016

TOPIC: General Studies 3

The battle over Bt cotton (Part I: Understanding the Basics)

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

Pic link: http://www.bt.ucsd.edu/assets/usda_cotton.jpg

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

TOPIC: General Studies 2

MGNREGA MIS- Need to achieve more

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

River Diplomacy On Test

Breaking the Panipat syndrome

Singapores PM visit to India

Explaining the slide in CAD

IASbabas Daily Current Affairs 4th October, 2016 | IASbaba

The magazine cover decision