9 PM Daily Current Affairs Brief – August 6th, 2021

Mains Oriented Articles 

GS Paper 1

• The Power of Population for Economies

GS Paper 2

• Why are government schools not the first choice?
• Re-negotiate Indus Treaty with Pakistan in light of climate change: Standing Committee on Water Resources
• China’s border games
• Not always fair game
• A guide to resolving Assam Mizoram border issue

GS Paper 3

• India’s indigenous aircraft carrier setting sail for sea trials is a historic moment
• Rewiring Indian Inc
• How to save Banni Grasslandsfrom invasive species? Here’s what a new study suggests
• India’s godowns are overflowing. So why are people starving?
• Fiscal action by the Centre must take over from monetary policy
• Avoid arbitrary regulation
• Brown vs Green Trap
• India-Nepal Flood Management Needs Course Correction
• Chinese Tech Under Scrutiny, Indian Tech can gain: GoI’s first move in global action that’s made Beijing nervous
• Pegasus has given privacy legislation a jab of urgency

Prelims Oriented Articles (Factly)

• Kerala has highest share of elderly in population, Bihar lowest
• KVIC’s Unique Plastic-Mixed Handmade Paper gets Patent for Invention to Recycle Waste Plastic
• How the critically endangered Anaimalai flying frog got a new home
• Six Universities/Institutes and five Medical Colleges have been selected for setting up of Sports Science Departments and Sports Medicine Departments under the NCSSR scheme
• TRIFED to set up Atmanirbhar Corner in Indian missions and embassies around the world
• Star Rating proposed for Tyres for better fuel saving and comfortable driving
• CSIR-CMERI Post-Harvest Technologies for cutting down Huge Losses in Agricultural Produce
• India defeats China for ReCAAP elections with Quad on its side

Mains Oriented Articles

GS Paper 1

The Power of Population for Economies

Synopsis: Governments, globally, are focussing on population control policies. However, political failure is doing more harm compared to population increase.

Introduction 

Reverend Thomas Robert Malthus wrote in his Essay on Population—“The power of population is indefinitely greater than the power in the Earth to produce subsistence for man.” Since then, this theory has influenced plenty of scientists.

There are pessimists (usually biologists) and optimists (usually economists). Pessimists believe that the human population is increasing so rapidly that we will end in catastrophe. Whereas, optimists believe that humanity is capable of solving its population problems.

The debate on the Total Fertility Rate (TFR) is also one of the aspects of this debate. Recently, Uttar Pradesh also proposed a draft Population (Control, Stabilisation, and Welfare) Bill aimed at controlling TFR by introducing penalties for couples who have more than two children.

However, the effectiveness of these TFR related measures is still not clear.

TFR and Malthus prediction 

At present, the TFR rate is decreasing very rapidly. Very soon, TFR figures the world over will be the lowest in history. China’s TFR (about 1.69) is well below the replacement level, and that of India was 2.22 in 2018. Even UP’s TFR was 2.7 in 2016.

However, since 1968, the Earth has added over 4 billion more people. This huge increase will have implications for the earth and humanity itself. But these implications will not include the disaster as predicted by Malthus.

This disaster will arrive as a result of, as Mann described: “the human race’s perennial inability to run its political affairs wisely.”

Example of sub-Saharan Africa

It is a general belief that overpopulation has caused terrible damage to the land in sub-Saharan Africa. However, the findings of Michael Mortimore of Cambridge University are in contrast to this belief.

For generations, Nigerian farmers would simply move on when resources were exhausted. But with population pressure, the land grew ever more expensive. This forced farmers to take better care of what they owned because moving on was no longer viable.

This resulted in a record increase in grain production levels. The country’s steadily increasing population had actually increased the productivity of its land.

Thus instead of population increase, the failure of the political system i.e. government has increased their suffering.

• Civil strife: Governments have failed to stop civil strife in the regions, instead they are participating in it.
• Land use reforms: Governments have failed to reform land-use rules to address the issue of overuse of common property.

Conclusion 

The example of sub-Saharan Africa fits well to India as well. Instead of increasing population, it is political violence and an inefficient justice system that requires attention.

Terms to know: TFR 

GS Paper 2

Why are government schools not the first choice?

Synopsis

Improving the infrastructure of government schools will make them more attractive.

Introduction

Recently, The Patna High Court has recently asked for data on how many IAS and IPS officers have enrolled their wards in government schools.

Advantages of government schools:

• Children can get a chance to study with children from different socio-economic backgrounds. But in private schools, that’s not the case.
• The midday meal in a school also contributes to building a healthy school environment.

Challenges with the Government schools:

1. People feel there are not enough teachers in these schools, or the schools may not be functioning regularly.
2. India has different kinds of education systems in different States. Each has different types of challenges.
3. Barely 15% of the schools can be called compliant with the RTE.
   • Section 29 of the RTE explains what kind of education every child has a right to. There is no government school that is complying with that, including elite schools.
4. The secondary and higher secondary level government schools do not have adequate capacities, so the net enrolment falls, especially girls, sharply beyond the primary level.
5. Problems associated with government school teachers:
   • Teachers’ professional development is a very weak area in government schools.
   • Almost half the regular teacher vacancies are filled by guest or ad hoc teachers.
   • Nearly, 95% of teacher education is in private hands and most of it is substandard.

Suggestions to improve government Schools:

1. The government (State and Union) has to improve pedagogy, teacher development, the level of community participation, the parent committees, etc.
2. India should also look at the basic safety, well-being and hygiene factors in government schools. Such as, well functioning toilets, drinking water and proper compound walls.
3. India can create better professional networks for teachers, this will help teachers to continuously learn from each other.
4. Developing a micro plan for every school, and a larger plan for schools at the district level, and then at the State level.
5. Decentralisation: Local bodies can take ownership of government schools, and school development committees can be linked with elected local bodies, so they can support the needs of schools.
6. Create a comprehensive curriculum review like Kerala and synchronise it at a national level to facilitate the incorporation of inter-state migrated children.

Terms to know:

• Right to Free and Compulsory Education (RTE) Act, 2009
• Section 29 of the RTE

Re-negotiate Indus Treaty with Pakistan in light of climate change: Standing Committee on Water Resources

Synopsis:

The 1960 Indus Water Treaty between India and Pakistan did not take present-day issues like climate change into account. This calls for a renegotiation of the treaty through discussion and deliberation among the two countries.

Background:

• The standing committee of Water resources has submitted its 12th Report to the Lok Sabha on 5th August 2021.
• The report calls for a renegotiation of the Indus Water Treaty in light of present-day challenges like climate change.

About the Indus Water Treaty

Findings of the committee in its 12th report:

1. Present-day pressing issues such as climate change, global warming, and environmental impact assessment were not taken into account by the treaty.
2. It predicted some upcoming impacts of climate change on the Indus basin:
   • There would be instances of more high-intensity rainfall as well as long stretches where there is low rainfall. 
   • There would be a high influx of water due to glacial melt. The contribution of glaciers in the Indus basin is higher than in the Ganges or Brahmaputra basins. 
   • Considering the fragile nature of the Himalayan region, there is a greater frequency of landslides and flash floods.
3. The report also noted that India was able to make full use of the ‘Eastern Rivers’, namely the Ravi, Beas, and Satluj through a series of dams. This includes dams such as Ranjit Sagar on the Ravi in Pathankot, Pong on the Beas, and Bhakra Nangal on the Satluj.
4. However, it observed that canals in Punjab and Rajasthan such as the Rajasthan Feeder and the Sirhind Feeder had become old and were not maintained properly. This had resulted in the lowering of their water carrying capacity. Thus, the water from the Harike Barrage on the confluence of the Beas and Satluj in Punjab was usually released downstream into Pakistan.

Way Forward:

• The committee urged the Centre to expedite new projects like the one on the Ujh, a tributary of the Ravi, as well as the Shahpurkandi on the Ravi. This will result in optimum utilisation of the rivers for irrigation and other purposes.
  • It also recommended that the canal systems in Punjab and Rajasthan be repaired to increase their water carrying capacity.
• Further India should use the tools of discussion and deliberation to renegotiate the treaty with Pakistan. 
  • The aim should be to establish some kind of institutional structure or legislative framework to address the impact of climate change on water availability in the Indus basin.

China’s border games

Synopsis: China’s strategy of push and shove to solidify its position along the LAC requires bold and decisive action from India.

Context

• Recently, China’s President made a three-day visit to Tibet.
• Featuring prominently in his programme was the Tibetan town of Nyingtri (or Nyingchi) which is of strategic interest to India.

Strategic significance of Nyngchi to China

• Beijing claims that what India calls Arunachal Pradesh is actually Southern Tibet, a part of Nyingtri prefecture.
  • Nyingtri is a key crossroads in Beijing’s plan to connect Tibet with China’s bustling Sichuan province.
• It is central to Beijing’s plan to connect the remote areas bordering India and to build massive dams on the Yarlung Tsangpo river system to generate hydropower for uses such as powering the electrified, high-speed, double track railway between Lhasa and Chengdu, Sichuan’s capital.
• A bullet rail link from Lhasa to Nyngchi was inauguarated recently.

What is China’s Push and shove strategy?

Using border villages to strengthen its territorial claims

• Such as coercing border villagers to occupy disputed border areas, usually high pasturelands, thereby solidifying China’s territorial claims along the still disputed boundary with India and Bhutan and strengthening Beijing’s geo-political position.
• These included driving yak herds over land grazed by Bhutanese herders in the Beyul, demanding tax payments from the Bhutanese herders, planting Chinese flags on peaks and painting the word ‘China’ on rocks throughout the area.
• In the face of this, the Bhutanese herders moved away, abandoning their traditional grazing grounds.

Creating a network of quasi-militarised settlements: By implementing multiple intrusions across the disputed borders, Beijing has created a vast network of quasi-militarised settlements.

• Bhutan: Beijing’s eyes are fixed on pockets of territory on Bhutan’s western borders especially Doklam, from where the PLA could pose a military threat to India’s Siliguri corridor.
• Since 1990, Beijing has offered Bhutan a deal in which China would renounce its claim to Bhutanese territory Beyul, provided Bhutan cedes Doklam.
• When Bhutan declined Beijing’s so-called package deal, China stepped up the pressure by beginning road construction in the Beyul in 2015.

• By October 2018, China had completed the construction of Gyalaphug, an entire village in the Beyul. Other villages and infrastructure followed as an estimated 250,000 Tibetans were resettled thus in vulnerable pockets along the border.

Threatening Indian graziers: China plays this game across the Line of Actual Control (LAC) with India, supporting its own yak graziers and threatening India’s. The area across the Indus at Dungti, near Demchok in Southern Ladakh, which is claimed by India, is no longer visited by Ladakhi herders after several were beaten up by Chinese border guards. Indian graziers in the Chushul area also face similar

Way forward

Countering the Chinese game will require a bold political leadership that unequivocally supports our military forces.

Terms to know:

• Siliguri corridor

Not always fair game

Synopsis

• Tamil Nadu government, driven by the desire to control the menace of online gambling, has moved legislation to ban online games like rummy and poker.

Introduction:

• The Tamil Nadu government has amended the Tamil Nadu Gaming Act 1930 and banned online games like rummy, poker etc.
• But the Madras High Court has struck down the amendment.

The justifications cited by the Government

• These games can be addictive.
• They can have an economically destabilizing impact on small households.

Madras High Court’s observation

• The amendment failed to make a distinction between games of skill and games of chance.
• The amendment added clauses that would apply to games of skill if played for a wager, bet etc. This is contrary to the previous judicial pronouncements.
• The amendment would render even offline games illegal which are played for prize money.

Issues with the legislation

• Populism has made the state paternalistic, assuming that society needs its guidance. This compromises individual freedom and choice.
• Legislation is guided more by moralism or notions of sin rather than reason.
• Excessive paternalism can easily turn into authoritarianism.

Way forward

• These activities can be regulated rather than banning them.

A guide to resolving Assam Mizoram border issue

Synopsis: Both Assam and Mizoram need to be sensitive to the historical context of the border issue. Only then they can hope to solve the present dispute.

Background

• Read here: Assam-Mizoram border dispute – Explained

Note: Before moving forward, please go through the above link for a better understanding of the entire issue.

Historical context

Both Mizoram and Assam have their issues with the boundaries.

Mizoram: Almost one and a half centuries ago and 17 years before the Lushai hills was annexed to British Assam in 1892, the ‘inner line’ boundary of the Lushai hills was ‘fixed’ in 1875 on the southern border of Assam’s Cachar district. This boundary was however not ‘precise’ as it was drawn largely using natural markers such as rivers and hills. In post-independent India, the Mizoram government has accepted this boundary.

• Revisions of the boundary not accepted: Subsequent revisions were made by the colonial govt, but they are not recognized by Mizoram govt because they fail to recognize the Mizo’s long-standing historical rights to use the un-demarcated southern border of Cachar as their hunting ground, for jhum cultivation, and as sites of their resource extraction including rubber and timber.
• Encroachment by Assam govt: Assam government has enclosed around 509 square miles of the Lushai hills under the Inner Line Reserve Forest area via the Assam Forest Regulation, 1877. This is being cited as one of the glaring exemplars of ‘encroachment’ by the Assam government into the Lushai hills (now Mizoram).

Assam: Assam government considers Mizo plantation and settlements in the Inner Line Reserve Forest areas as an ‘encroachment’.

Core of the problem

The heart of this entire problem is the differing approaches of the two state governments.

Assam govt’s state-centric approach

• This approach gives precedence to legal, juridical and administrative recognition and protection of the border.
• Under this approach, enclosing a forest as a reserve forest is primarily an activity to augment state revenues. More important objectives like Forest conservation and the protection of tribal/indigenous land interests take a backseat.
• The recent hints by Assam Chief Minister to approach the Supreme Court of India, and raise a 4,000-strong commando battalion to ‘protect’ the ‘forest reserve’ areas need to be seen against this backdrop

The main problem with Assam’s view –

• Ignores historical context: Assam govt’s view ignores the fact that various villages and tea-estates in Cachar have deep-rooted associations with Lushai chiefs. For eg: Jalenga tea estate located in Tlangpui village and Paloi tea estate near Vairengte — both in Cachar — took their names after Zalenga and Palawia, two Lushai chiefs. Lushai are also among the earliest settlers of Cachar, many villages in Cachar (and Karimganj) have Lushai settlements.

Mizoram’s people-centric approach

In contrast, Mizoram government advocates a ‘people-centric’ approach.

• This approach seeks to give a priority to the historical and traditional rights of the local indigenous people on the one hand and to the principle of uti possidetis juris (‘as you possess under law’, including customary law) on the other hand.
• Mr. Zoramthanga and his predecessors have made concerted attempts to forge a consensus around this approach. The two-member boundary committee report of 1973 and the memorandum prepared by the Joint Action Committee, non-governmental organisations and all-political parties in Mizoram in 2018, which has been submitted to the Prime Minister of India, are pointers to this.

An ideal approach

An ideal approach to solve Assam Mizoram border dispute would be based on the following parameters:

1. Sensitive to historical context: It should be sensitive to historical context in which local landowners and protectors have transformed overtime as ‘encroachers’ of land across the two States.
2. Seeing forests as more than a source of revenue: It should be sensitive to the possibility of overlapping sovereignty, where forest ‘commons’ are seen not simply as sites of revenue-extraction but as powerful symbols of identity and sustainable livelihood resources for the local people.

Government’s role

• Centre should set up a permanent inter-governmental forum to involve important stakeholders in order to effectively manage border and territorial conflicts.

Way forward

Deep historical knowledge, sensitivity and an accommodative spirit need to inform Assam and Mizoram even as they sit down peacefully to enter into dialogue and negotiation under the neutral supervision of the Centre

Terms to know: 

• Inner Line Permit (ILP) 

GS Paper 3

India’s indigenous aircraft carrier setting sail for sea trials is a historic moment

Synopsis:
The onset of sea trials of INS Vikrant marks a historic moment for the Indian Navy, which till now had aircraft carriers, but none built at home. The brand-new INS Vikrant is 75% indigenous and is the first big-ticket example of Atmanirbhar India.

Background:

• August 4, 2021, marked a milestone in India’s ambition to become self-reliant in defence production. 
• The first indigenous aircraft carrier began its sea trials. It’s expected to be commissioned in a year as INS Vikrant. 
• It makes India only the seventh nation to develop the capacity to indigenous design and build a carrier. The other six include the US, UK, Spain, Russia, France, and China.

About INS Vikrant

Analysing the degree of Self Reliance in Defence Production:

• A pathway to realize this goal was a policy transition in May 2001 to open up the defence industry to 100% private participation. Post this, 333 private companies have got industrial licences.
• Success:
  • In 2020-21, about 63% of the Rs 1.39 lakh crore procurement budget went to domestic manufacturers. 
  • In relative terms, procurement from domestic sources has increased. HAL, for example, supplies 61% of the airborne fleet in use by defense services.
• Concerns:
  • During the period 2001-20, the Stockholm International Peace Research Institute’s database showed that India was the world’s largest importer of arms, at an aggregate value of $52.8 billion.
  • The huge import is a result of a shortage in capabilities for designing and developing major platforms. For instance, we ordered the Medium Multi-Role Combat Aircraft from France and the S-400 Air Defense System from Russia.
  • Further, there is a lack of financial support to boost indigenous production. For instance, in 2020-21, By 2020-21, 61% of the defense budget was allocated for salaries and pensions and 19% towards buying arms.

Way Forward:

• The government must soon finalise the modalities of the 15th Finance Commission’s suggestion on creating a non-lapsable defence fund. This is necessary to insulate defence spending from short-term fiscal pressures and enable the development of more indigenous carriers.
• It needs to be complemented by a relatively closer engagement between Government and domestic manufacturers. Durable commitment by the government is desired to move up in the value chain of defence production.

Rewiring Indian Inc

Synopsis: 1991 reforms was a transformational step for the Indian economy, causing a tremendous shift in the way business was carried out in India. An analysis of the changes brought by the reforms and its impact.

Changes brought by 1991 reform

1. Centrality of the consumer – the reforms gave centrality to the consumer, who till 1991 did not have a choice.  The Indian consumer was given choices and companies, both foreign and Indian, wanted to be their first choice which boosted demand which is reflected in GDP growth rapidly moving up to 7% per annum.
2. Increased competition in the market –  Indian companies faced real competition from other Indian as well as foreign companies.
3. Government-industry partnership – Post reform  the government’s dialogue with industry deepened. Consultations were frequent. Feedback on what was happening on the ground was taken regularly. A government-industry partnership improved further.
4. Increased  “aspirations” of the industry – There was excitement and ambition to be world-class. And, in this, the IT industry led by TCS, Infosys and Wipro played a major role.
5. Emergence of Entrepreneur Class – The reforms created not just the big boys of the industry, but also, the small and medium sectors that became part of the new energy in industry.
6. Ended Monopoly of the government in Infrastructure – private sector was invited to participate, to get into public-private partnerships and end the government’s monopoly.
7. Induced Competition in Banking sector – the reforms of 1991 gave birth to a new private sector bank — HDFC Bank. This was a huge step forward in the reform process.

Conclusion

The reforms of 1991 placed Private sector at the centre which has grown many folds. There is still a long way to go, but the die that was cast in 1991 has led to a new tsunami of change. Over the last 30 years, the Indian industry has expanded its global reach. Its products and services are internationally competitive, matching the best. The period from 1991-2021 was transformational.

How to save Banni Grasslandsfrom invasive species? Here’s what a new study suggests

Synopsis:

A study by ATREE (Ashoka Trust for Research in Ecology & Environment) & Sahjeevan (Volunteer Organisation) to study the impact of Prosopis Juliflora on Banni Grasslands

Context:

Prosopis Juliflora, a non-native tree species, has encroached over half of Banni Grasslands. Although it is harmful to ecology, locals are dependent on it for livelihood, mainly for Charcoal

When Prosopis Juliflora was introduced in India? 

Prosopis was introduced into India’s arid landscapes in the late 19th century owing to misplaced beliefs that deserts and grasslands were wastelands and hence needed trees.

• For Fuelwood availability
• And to keep salt flats of Rann of kachchh in check

The threat of Prosopis Juliflora:

• It depletes Groundwater
• Increase soil salinity
• More susceptible to wildfire
• Threat to the habitat of various wildlife, mainly Desert Fox, Houbara Bustard, Spiny Tailed Lizard

Adaptation by local communities:

Many of the communities have shifted from Kankrej cows to Buffaloes as they cannot digest Prosopis pods

• Although the main source of livelihood is still Animal Husbandry, people started to make charcoal as an alternative source of livelihood, especially during drought years.

How Grasslands can be managed: Two methods can be used here

1. Mechanical: Use of machines and tractors to remove trees
2. Loping: Use of machetes to uproot trees that are 10-20 centimetres above the soil level.

Findings of ATREE study:

• For Small Scale restoration–Mechanical removal will be best suited as it can help to increase the diversity of grasslands
• For Large Scale Restoration—The mechanical process will be expensive & there is a need to study the impact on local livelihoods as charcoal making is a major source of alternative livelihood

Way Ahead:

• Focusing on ecology alone and ignoring the dynamics of local communities would not be wise.
• The needs of local communities should also be incorporated in the solution.

Terms to Know:

•  Banni grasslands

India’s godowns are overflowing. So why are people starving?

Synopsis

Undernourishment has been a global challenge over the last few decades. This has been further highlighted by the state of Food Security and Nutrition in the World (SOFI) report released by the UN.

Findings of the SOFI report

• The prevalence of moderate to severe food insecurity in India rose by about 6.8 percentage points in 2018-20.
• In 2020, over 237 crore people were grappling with food insecurity globally, an increase of about 32 crores from 2019.
• In India, this happened despite the government having an unprecedented 100 million tonnes of food grains in its godown — larger than the food stocks of any country.

Indicators of food security

The SOFI report is based on two globally accepted indicators of food insecurity:

• The Prevalence of Undernourishment (PoU), which estimates the proportion of people suffering from a chronic deficiency of calories
• Prevalence of Moderate and Severe Food Insecurity (PMSFI).

PoU estimates

• Since consumption surveys are not available every year, POU captures changes in per capita food supply and is not sensitive to capture disruptions in the food supply.
• Hence, the increase in the prevalence of hunger captured by PoU — from 14 percent in 2019 to 15.3 percent in 2020 for India — is likely to be an underestimate

PMSFI estimates

• They are based on data collected through surveys that capture people’s experiences of food insecurity.
• PMSFI estimates show that there was about 43 crore of moderate to severe food-insecure people in India in 2019.
• Gallup (commissioned by FAO) collect data on the Food Insecurity Experience Scale (FIES).
• Since GOI has not conducted the survey since the outbreak of the pandemic and has not accepted Gallup results, there are no India data in the report.

Causes of food insecurity in India

• Despite food availability, there is hunger because of widespread economic distress, high unemployment and high levels of inequality.
• A large proportion of the poor is dependent on the informal economy, where income is low and uncertain.
• High food prices and high inflation have further added to food insecurity.

Food insecurity and Women in India:

• Indigenous women, who play a crucial role in eradicating hunger, suffer due to a lack of recognition of their rights and discrimination in the household.
• Women farmers are disproportionately more impacted by climate change, as stated by the IPCC report.
• Covid-19 has aggravated the crisis further due to increased poverty, food insecurity and malnutrition.
• So, gender equity is badly needed to achieve food security as highlighted by the UN in Food Systems Summit in September 2021.
  • Dimitra Clubs in the rural regions of sub-Saharan Africa have been driving women’s leadership for over a decade. This can be implemented in India.

Way Forward

• Government should establish systems for regular monitoring of food security.
• Universalization of public distribution system.
• Fight malnutrition by challenging dietary taboos, mobilise resources to meet environmental challenges.
• Adopt policies that eliminate barriers to access to fundamental services, ensuring food security. For example, the right to food, shelter and health, etc.

Terms to Know:

• State of Food Security and Nutrition in the World (SOFI) report

Fiscal action by the Centre must take over from monetary policy

Synopsis: Monetary policy has done its part, both through rate cuts and other forms of support, to get our economy going. Now, it’s the turn of India’s fiscal authority to step up efforts to promote growth.

What is fiscal policy?

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy.

Required fiscal policy actions

Fiscal policy actions are needed in these areas:

1. On vaccination programme: There is need for ramping up of speed of vaccination twice at present and the central budgetary allocation of Rs 30000 crore should be treated as floor rather than cap.
2. On Export: Exports are foremost at a time when world growth is projected at 6%. Indian merchandise exports touched a sensational $95 billion in the first quarter (April to June) of the current year.
3. On Central expenditure on transfers to states, which could face procedural obstacles.

Issues faced by Export sector

1. Levies outside the GST affect the exporter, such as on universal inputs like electricity, petroleum and diesel, affect the rupee price of exports.
2. Issues with RODTEP
   • Rates not announced: The remission rates by product have not been announced yet, which may lead to exporters taking a cut to their margins or reduce their product price.
   • Small budgetary provisions: RoDTEP carries a budgetary provision this year of ₹13,000 crore, which is very small in comparison to the target of achieving $400 billion export.

Issues with Central transfers

New requirements for release of funds: Central transfers through CSS (centrally sponsored schemes) funds will flow in four tranches of 25% each, subject of course to evidence of usage, which is a standard feature of our financial controls. However, the states were required to open a separate bank account for a single nodal agency (SNA) for each CSS, and for each of the agencies at district or lower levels to whom the funds will flow, by 1 July 2021.

• Impact of these new requirements: The administrative burden on states will increase enormously, to open all those accounts and maintain them as mandated, resulting in a reduction in the release of CSS funds simply because of states’ inability to cope with the new requirements.

Terms to Know

• RoDTEP Scheme
• Monetary Policy

Avoid arbitrary regulation

Synopsis : The deferment of RBI’s guidelines on Overdrafts and current accounts, which were laid down in August last year, has been criticized as an arbitrary regulation.  The deadline for implementation of the circular has been pushed back to October 31 from July 31.

About overdraft and current account guidelines

In a bid to enforce credit discipline and check diversion of funds, the Reserve Bank of India (in its August 2020), put in place certain safeguards for opening of current accounts by banks. With the earlier framework found to be inadequate, according to the RBI, it moved to tighten the norms to streamline the use of multiple accounts by borrowers.

• Under the new guidelines, no bank can open current accounts for customers who have availed credit facilities from the banking system. All transactions should be routed through the CC (Cash Credit)/OD (Over Draft) account.
• Further, in case of customers who have not availed CC/OD facility from any bank, banks may open current accounts, but with certain conditions in case of borrowers with more than ₹50 crore exposure to the banking system.

Issues with deferment

1. Penalizing the banks that that sought to comply with the guidelines – since they had to close hundreds of accounts and lose out many customers.
2. Hurried extension – the deadline has been extended four days after the deadline has, in fact, expired causing disruption in smooth functioning
3. No clear case has been made – for explaining the advantages of guidelines indicating rush towards implementation without foresight
4. Increased cost of burden for banks – It also required banks to implement an escrow mechanism for borrowers with exposure to the banking system of over Rs 50 crore, and limited current accounts of these borrowers to the banks managing the escrow account which increased cost of burden on the banks
5. Affecting the interest of private banks – the mandate on current accounts looks like the RBI taking preferential action on behalf of state-run banks, which tend to be large lenders to the corporate sector in India
6. Penalizing banks that provide better services and companies with more efficient treasury management –  guidelines force the corporate sector to move their current accounts to public sector banks, thus penalising banks that provide better services and companies with more efficient treasury management.
7. Neglecting advanced information sharing techniques – Objectives of the guideline is to address the information asymmetry in the banking sector and reduce banking frauds however guidelines failed to look at other technologies

Conclusion

Regulatory unfairness should be avoided at all costs. When a level playing field is provided, more efficient private banks will prosper and gain market share. This is a natural and desirable process, and the RBI should not stand in its way.

Brown vs Green Trap

Synopsis:

The more the world push towards a green economy, the more expensive the campaign will become and less will be the chance to achieve its aim & limit the worst effects of global warming.

Introduction:

Governments around the world are focused on driving up the demands of materials required to build a clean economy. They are also curbing the supply of sources that are contributors to carbon. For instance, discouraging investment in mines, smelters etc.

The world is facing a rise in oil prices and decreasing investments in hydrocarbon companies. But still, the hydrocarbon companies are reinventing themselves as provider’s clean power.

The actions of government and Hydrocarbon companies will lead to greenflation -rising prices for metals & minerals like aluminium, iron which are required for building green technologies. For e.g. copper prices are up by more than 100%.

Further, limiting the supply of oil threatens to raise what Bill Gates calls the “greenium” – the premium the world must be prepared to pay for climate-friendly infrastructure.

ESG movement:

ESG stands for Environment, Social & Governance.

This is used by asset managers and investors to evaluate companies’ potential financial performance and their performance in ESG.

The asset managers aim to invest in companies that strive to make the world a better place. It evaluates companies and countries on various metrics like sustainability, clean energy, etc.

Effect of ESG movement:

• Mining projects are now taking ten or more years time in countries like Chile and Peru, where earlier it took only five years
• Chile adopted new environmental rules & royalty which makes the mining unprofitable there

Suggestions:

The World will not be able to meet the rising demand for Green construction materials. So they require using more technology in order to facilitate them. For instance,

• The US has joined China in its commitment to carbon neutrality.
• Governments have announced Green spending plans.

Way Forward:

We should not be in a hurry to shut the old economy into a new green economy. We have to strive for a balance between the old and the new.

Terms to know: 

• ESG movement

India-Nepal Flood Management Needs Course Correction

Synopsis: Despite both structural and nonstructural efforts to improve disaster management during the past, people continue to suffer with perennial flooding in North Bihar, which is already facing humanitarian crisis following Coronavirus pandemic. The solution lies in India and Nepal working together to solve the problem.

Flood problem in Bihar

• The Flood Management improvement Support Centre (FMISC), Department of Water Resources, Government of Bihar estimates that 76% of population in North Bihar faces recurring threat of flood devastation.
• 73.06% of the land area in the region get affected due to the floods.
• Plains of North Bihar have recorded the highest number of floods during last 30 years. the years 1978,1987,1998,2004 and 2007 witnessed high magnitude of floods.

Measures taken

Past Measures

• Structural changes: Renewed approaches in infrastructure augmentation for dams and reservoirs, detention basins, embankments and channel improvement.
• Non-structural measures: Such as floodplain management,flood forecasting and warning, flood insurance and financial compensation.

Present Measures

Bihar’s Disaster Management Department released two documents titled: “Pre-Flood Preparedness” and “Flood Control Order 2021” to help the local administration in terms of preparedness and having in place a relief support system.

However, a solution to the issue of chronic flooding lies in revisiting the old plans and arrangements between India and Nepal to address the root cause of flooding in the region.

Indo-Nepal coop is essential

A large part of north Bihar, adjoining Nepal, is drained by a number of rivers that have their catchments in the steep and geologically nascent Himalayas.

1. Most rivers originate in Nepal: Most of the rivers such as the Kosi, Gandak, Burhi Gandak, Bagmati, Kamla Balan, Mahananda and Adhwara group originate in Nepal. These rivers have a high discharge along with an equally high sediment load.
2. Past cooperation: The history of cooperation between India and Nepal go back to the 1950’s when the work on Kosi embankment started by the Volunteers on both side, however this spirit short-lived. Such a progressive government-citizen interface could not sustain itself, and water cooperation between the two countries for a common cause waned.

Issues involved

1. Negative impact of interventions: Infrastructural interventions such as building embankments and re-routing streams have disturbed the conventional pattern of slow water flow, affecting farming in the region causing displacement of people
2. Inefficient Kosi Treaty: The Kosi Treaty of 1954, under which the embankments in Nepal were established and maintained, was not futuristic and did not make enough provisions for maintenance of the embankments and rivers changing their course.
3. Rising river bed: The deposition of stones, sand, silt and sediment has led to river beds rising

Suggestions

• Increased transborder cooperation on flood management
• Sensitization on climatic imbalances and sustainable development
• Reestablish water cooperation as a common cause and draw inspiration for joint action from the 1950s.

Way forward

Greater attention needs to be given to this annual calamity and its devastating effects on lives and livelihoods. India and Nepal need to be in dialogue to end the crisis of flooding every year.

Chinese Tech Under Scrutiny, Indian Tech can gain: GoI’s first move in global action that’s made Beijing nervous

Synopsis: A sharp crash in share prices of prominent Chinese tech companies due to steady expansion of government regulation, has led to decline in the market capitalization of China’s big tech companies to the tune of $800 billion. For Indian Tech companies, it is creating a new opportunity for expansion.

What’s happening in China?

• Lately, the Chinese Government has been taking various measures to address issues such as violation of Anti trust Laws, unfair market practices, violation of user privacy and mishandling of the user data by tech companies.
• Some of the country’s largest big tech companies like the Alibaba group, DiDi, Tencent Holdings, and ByteDance have come under government scanner for alleged violations. For instance Tencent’s WeChat, China’s largest messaging app, has temporarily suspended registering new users due to crackdown by the government

Reason for recent Crackdown?

• Banning of apps by India: It is believed that the origin of regulatory actions by Chinese government lies in the proactive actions taken by Indian government in June 2020 to ban numerous Chinese apps over the issue of data security and privacy concerns. GoI even banned popular apps like TikTok and PubG which had millions of user in India to protect the National Interest
• Start of a global debate: These actions by India started a global debate over potential security threats from Chinese big tech, leading to similar actions taken by then US President Donald Trump to ban multiple Chinese apps.

The action taken by Indian govt and the global debate it began, may have necessitated corrective measures so that Chinese tech companies could continue operations domestically as well as in foreign markets.

Possible Implications of Crackdown

1. These actions could usher a paradigm shift in Technology sector globally.
2. Market expansion of the companies will depend upon their ability to comply with legal provisions for user privacy, data sharing and fair market practices.
3. It will promote “Ethical Tech” while “Unethical tech” will face serious hurdles.
4. Opens up opportunity for Indian Technology Sector

How it can be a big moment for Indian startups and IT?

India has a good track record in regulating big tech, particularly in privacy and data protection. Indian companies have operated in that environment and have a good compliance record. That makes them attractive for both global markets and global capital, as evidenced by the recent Zomato IPO.

1. Increase investment opportunities : Actions of Chinese government could lead to a “Flight Of Capital’ from China and India’s Ethical Tech sector will benefit out of it.
2. Reduced competition : Crackdown on domain specific tech companies like online tutoring companies could reduce market competition for Indian companies
3. Market expansion : It could open doors for foreign markets and new customers for Indian companies.

Conclusion

The Indian government had initiated a global battle against unethical tech and their dangerous practices and the results are for everyone to see today.

Pegasus has given privacy legislation a jab of urgency

Synopsis: Pegasus has shown just how easy it now is for governments to spy on people. Such tools being in wide use has given rise to calls for legislative action to keep them under democratic supervision.

Background

In light of the Pegasus spyware issue, a need has widely been felt for legislation to deal with data protection and privacy in India. This issue is especially significant given that in the Justice K.S. Puttaswamy vs Union of India case of 2017, held the right to privacy to be an intrinsic part of the right to life and personal liberty under Article 21, and as part of the freedoms guaranteed by Part III of the Constitution of India.

About Personal Data Protection Bill

Although the Indian government had introduced the Personal Data Protection Bill on 11th December 2019, it is yet to become law.

The bill is a diluted version of what that BN Srikrishna committee had proposed, as it exempts agencies of the central government from its application and empowers the government to direct data fiduciaries to submit personal as well as non-personal data of Indian citizens to it under Section 91.

• Definition of data: What constitutes ‘personal data’ is defined under Section 3(28) of the bill to mean data that directly or indirectly identifies a natural person, or relates to any characteristic, trait or attribute of such a natural person, but there exists no definition for non-personal data.
• Sections related to personal data breaches: Personal data breaches are addressed under Section 25, which imposes a duty on the data fiduciary to inform the Data Protection Authority of India (DPAI) in case of any breach of personal data that may cause harm to the data principal.
• Duties of the DPAI: The duties of the DPAI have been laid down under Section 41, which are to protect the interests of data principals, prevent any misuse of personal data, ensure compliance and promote awareness about data protection.

Concerns

• Independence of DPAI: Despite the safeguards, there exist concerns about the independence of the DPAI.

Way forward

With advancing technology, the ability of governments and private actors to intrude into the private lives of individuals will expand further. Additionally, on the pretext of terrorism and national security, governments around the world have blurred the lines of reasonable surveillance and data collection.

Hence, in the larger scheme of things, states need to adopt national laws that not only deal with data protection and privacy, but also educate people of risks related to identity theft and fraud in the digital world.

Terms to know:

• Srikrishna committee
• Puttaswamy judgement

Prelims Oriented Articles (Factly)

Kerala has highest share of elderly in population, Bihar lowest

Source: TOI

What is the News?

Ministry of Statistics and Programme Implementation(MOSPI) has released a report titled “Elderly in India 2021”.The report is based on the findings of the Technical Group on Population Projections for India and States for 2011-2036.

Key Findings of the Elderly in India 2021 Report:

 Growth of Elderly Population:

• The general population has grown by 12.4% during 2011-2021 in comparison to around 18% in the earlier decade.
• On the other hand, the elderly population has grown by 36% in each of the last two decades (2001-2011 and 2011-2021).
• A high growth rate in the elderly population compared to the general population was also observed earlier in the two decades between 1961 and 1981.
• Reasons: The growth in the elderly population has been attributed to the longevity of life achieved because of economic well-being, better healthcare and medical facilities and reduction in fertility rates.

State Wise Elderly Population:

• As per 2021 data, Kerala has the maximum proportion (16.5%) of elderly people in its population.
• It was followed by Tamil Nadu (13.6%), Himachal Pradesh (13.1%), Punjab (12.6%) and Andhra Pradesh (12.4%).
• The proportion of the Elderly Population is the least in Bihar (7.7%) followed by Uttar Pradesh (8.1%) and Assam (8.2%).

 Future Projections:

• The projections for 2031 show that Kerala will have the maximum proportion (20.9%) of elderly people in its population.
• It will be followed by Tamil Nadu (18.2%), Himachal Pradesh (17.1%), Andhra Pradesh (16.4%) and Punjab (16.2%), according to the report.

Old-Age Dependency Ratio:

• The old-age dependency ratio provides a clearer picture of the number of persons aged 60-plus per 100 persons in the age group of 15-59 years.
• According to the report, an increasing trend has been observed in the old-age dependency ratio. It has risen from 10.9% in 1961 to 14.2% in 2011 and is further projected to increase to 15.7% and 20.1% in 2021 and 2031 respectively.
• The projected dependency ratio for females and males is 14.8% and 16.7% respectively in 2021.

KVIC’s Unique Plastic-Mixed Handmade Paper gets Patent for Invention to Recycle Waste Plastic

Source: PIB

What is the News?

Khadi and Village Industries Commission (KVIC) has secured Patent registration for its innovative Plastic-mixed Handmade Paper developed to reduce plastic menace from nature.

About Plastic Mixed Handmade Paper:

• Plastic Mixed Handmade Paper was developed by a team of scientists of KVIC’s Kumarappa National Handmade Paper Institute (KNHPI).
• The paper was developed under Project REPLAN (REducing PLAstic from Nature) of KVIC.
• This is the first of its kind project in India where plastic waste is destructured, degraded, diluted and used with paper pulp while making handmade paper. This helps in reducing plastic waste from nature.

Significance of this Development:

• Firstly, the production of waste-plastic mixed handmade paper is likely to serve the twin objectives of protecting the environment alongside creating sustainable employment.
• Secondly, nearly 2640 handmade paper making units in the country under KVIC and State Khadi Boards have the potential of clearing approx 3000 MT of waste plastic from nature every year.
• Lastly, it can also create thousands of new jobs like the collection of waste plastic, cleaning and processing, etc.

How the critically endangered Anaimalai flying frog got a new home

Source: The Hindu

 What is the News?

Frog enthusiast in Kerala has constructed two ponds at Windermere Estate to restore the habitat for the Anaimalai flying frog.

About Anaimalai flying frog:

• Anaimalai flying frog (Racophorus pseudomalabaricus) is also known as the False Malabar Gliding Frog.
• The frog is endemic to the southern part of the Western Ghats.

Characteristics of the Anaimalai flying frog:

• The frog is usually larger than bush frogs.
  • Bush Frog is a species of Frog belonging to the family Rhacophoridae.
• The female can grow up to three inches. Mating takes place usually between June and October during the rainy season.
• The female creates foam nests on leaves, into which the eggs are laid and the male fertilises them.
• The outer layer of foam protects the eggs from bacteria, predators and weather changes.
• When the eggs hatch, the nest disintegrates and tadpoles drop into the water body below.

Conservation Status:

• IUCN Status: Critically Endangered

Threats:

• This species is known from at least two protected areas, Indra Gandhi National Park and Parambikulam Tiger Reserve.
• Outside the protected areas, it is threatened habitat loss caused by the conversion of forests to other uses as well as by timber extraction

Six Universities/Institutes and five Medical Colleges have been selected for setting up of Sports Science Departments and Sports Medicine Departments under the NCSSR scheme

Source: PIB

What is the News?

Recently the Minister of Sports, Youth Affairs informed the Parliament that so far Six Universities/Institutes and five Medical Colleges have been selected for setting up of Sports Science Departments and Sports Medicine Departments under the NCSSR scheme

About Scheme of National Centre of Sports Sciences and Research (NCSSR):

• The scheme of the National Centre of Sports Sciences and Research (NCSSR) is an initiative of the Ministry of Youth Affairs and Sports
• Aim: To support high-level research, education and innovation with respect to the high performance of elite athletes.

Objectives of NCSSR scheme:

• Application of scientific principles to the promotion, maintenance and enhancement of sporting performance.
• Developing athletes to their maximum potential and prolonging their competitive sporting career.
• Dissemination of sports science information
• Testing and Certification of food supplements/Indigenous preparations.
• Application of Ayurvedic/Homeopathic Medicines in sporting performance.
• Management and rehabilitation of sports injuries.

Components of the Scheme: The scheme has two components:

1. Setting up of NCSSR centre
2. Providing support (funding) for setting up of Sports Sciences Departments and Sports Medicine Departments in selected Universities/Institutes and Medical Colleges respectively.

Implementation of the Scheme:

• The Scheme is implemented through the Sports Authority of India (SAI) and the selected Universities/Institutes/Medical Colleges across the country.
• The funds under the scheme are not sanctioned/released state-wise.

Click Here to Read About TOPS Scheme

TRIFED to set up Atmanirbhar Corner in Indian missions and embassies around the world

Source: PIB

What is the News?

Tribal Cooperative Marketing Development Federation of India (TRIFED) Limited in association with the Ministry of External Affairs is about to set up an Atmanirbhar Bharat corner in 100 Indian Missions/ Embassies across the world.

About Atmanirbhar Bharat corner:

• Atmanirbhar Bharat corner will be an exclusive space to promote Geographical Indication(GI) tagged tribal art and craft products besides natural and organic products in around 100 Indian Missions/ Embassies across the world.

About TRIFED:

• Tribal Cooperative Marketing Development Federation of India (TRIFED) came into existence in 1987. It is a national-level apex organization
• Objective: The ultimate objective of TRIFED is the socio-economic development of tribal people in the country. TRIFED achieves this by the way of marketing development of the tribal products such as metal craft, tribal textiles, pottery, tribal paintings on which the tribals depends heavily for the major portion of their income.

Read more about the other Initiatives of TRIFED

• Pradhan Mantri VAN DHAN Yojana
• Sankalp se Siddhi
• Trifood Project

Star Rating proposed for Tyres for better fuel saving and comfortable driving

Source: PIB

What is the News?

Ministry of Road Transport and Highways has proposed the  “star rating” or “labeling” norms for Tyres for better fuel-saving and comfortable driving.

About Standard and Labelling Programme (S&L):

• Standard and Labelling Programme(S&L) is one of the major initiatives of the Bureau of Energy Efficiency(BEE).
• Objective: To provide the consumer with an informed choice about the energy-saving and thereby the cost-saving potential of the relevant marketed product.
• The scheme targets the display of energy performance labels on high energy end-use equipment & appliances and lays down minimum energy performance standards.
• Presently, the S&L program covers a star rating for 26 appliances/equipment including 10 for which it is mandatory. The other appliances are presently under the voluntary labeling phase.

About Bureau of Energy Efficiency (BEE)

• Bureau of Energy Efficiency (BEE) was set up by the Government of India in 2002 under the provision of the Energy Conservation Act, 2001.
• Purpose: The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles. BEE does this for the primary objective to reduce the energy intensity of the Indian economy within the overall framework of the Energy Conservation Act, 2001.
• This will be achieved with the active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.

CSIR-CMERI Post-Harvest Technologies for cutting down Huge Losses in Agricultural Produce

Source: PIB

What is the News?

CSIR-CMERI has developed various Post-Harvest Technologies to change the Agro-Economy of Nagaland and the North-Eastern States of India.

What is Post-harvest technology?

• Post-harvest technology is a technique applied to agricultural produce after harvest for its protection, conservation, processing, packaging, etc to meet the food and nutritional requirements of the people in relation to their needs.

Post-harvest technology in North-Eastern India:

• North-Eastern states of India have tremendous Geographical Advantages in terms of Farming and Agriculture. There is an abundant potential in harvesting crops such as Tung and Ginger.
• However, despite this Tung Oil is imported from China to India for therapeutic purposes such as asthma and bowel problems such as diarrhoea and constipation
• Moreover, despite India being the largest producer of Ginger, there is wastage of almost 45% of Ginger.
• The reasons for these are the non-availability of suitable harvesting technology and poor skilling Initiatives in the region to equip the farmers with the latest advancements in Farm Mechanization technologies are two of the reasons.

What is the solution to this problem?

CSIR-CMERI has suggested a three-pronged approach to solving the problem of post-harvesting. The approach is:

1. Increasing the Shelf-Life of the Harvest
2. Skill Development of the Farming Community
3. Reduction in Manual Handling of Toxic Crops.

Moreover, CSIR-CMERI has also developed various Post-Harvest Technologies such as Ginger Processing Technology and other technologies to solve the problem of non-availability of suitable harvesting technology.

India defeats China for ReCAAP elections with Quad on its side

Source: Hindustan Times 

What is the News?

India gave a major defeat to China when the Director-General of Coast Guard, K Natarajan, was elected as the next executive director of the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP).

About ReCAAP:

• ReCAAP is the first regional government-to-government agreement to promote and enhance cooperation against piracy and armed robbery against ships in Asia.
• Launched in: ReCAAP Agreement was launched in 2006 with 14 Asian Contracting Parties including North, Southeast, and South Asian countries.
• Members: Currently, it has 20 Contracting Parties including Europe (Norway, the Netherlands, Denmark, and the United Kingdom), Australia, and the United States.
• Other Members include India, Bangladesh, Sri Lanka, China, Japan, South Korea, Laos, Myanmar, Thailand. Philippines, Brunei, Vietnam. Cambodia and Singapore.
• Pillars: Information sharing, capacity building and mutual legal assistance are the three pillars of cooperation under the ReCAAP agreement.
• Headquarters: Singapore

Note: The government of India has designated Indian Coast Guard(ICG) as the focal point within India for ReCAAP