Counteracting China’s Influence by Improving Self-Capacity
Counteracting China’s Influence by Improving Self-Capacity This editorial is based on Tackling China’s infra build-up along LAC, which was published in Hindustan Times on 14/06/2022. It talks about China’s infrastructure buildup along the LAC and the steps India can take for deterrence against any Chinese attack. For prelims: India-China border mapping, Tibetan plateau, Xinjiang region, PLAAF, IAF For mains: Implications for India due to improvement on infrastructure by the Chinese side on LAC and how can India respond to this threat. With the rise of belligerent China and its increasing level of infrastructure buildup near India’s border area, there is a need for India to enhance its infrastructure capabilities to deter China from pursuing any misadventure along the LAC (Line of Actual Control), and to further develop it’s long term strategy to contain China. What’s the Issue? China has been developing infrastructure along with LAC. The latest satellite images revealed that China was building a second bridge over the Pangong Tso. This bridge can carry tanks and facilitate faster movement of military forces between the north and south banks of the lake. What kind of Infrastructure is being built by China? For Improving Air Assets: The first type of area is aimed at enhancing the capabilities of the PLAAF (Chinese air force), as earlier, it has a limited no of operational airfields in the Tibetan plateau, and problems of operating from high altitudes were a severe handicap for the People’s Liberation Army (PLA) Air Force. After the Doklam incident in 2017, 37 airports and heliports within Tibet and Xinjiang have been newly constructed or upgraded, of which at least 22 are identifiable as military or dual-use facilities. Dual-use facilities are those infrastructures that can have both military and civilian applications. These facilities include: Hardened shelters for housing military aircraft, Underground facilities to ensure survivability, Air defense missiles for protection, Runways extension, Helicopter operations facilities. For Enhancing Logistics: The second area is focused on the ability of the PLA (People’s Liberation Army) to rapidly mobilize its forces from its mainland bases to their battle locations through an improved road and rail network. In between 2015 and 2020, Tibet’s highways grew from 7,840 km to 11,820 km, a 51% increase, In June 2021, a high-speed rail line connecting Lhasa and Nyingchi entered service, covering the 435 km distance in 2.5 hours. For Ramping up Forward Movement: The infrastructure is also being developed for speedy application of combat power at LAC. China has constructed at least eight key roads toward LAC from the G219 highway, These roads provide connectivity to areas opposite important Indian military posts in Ladakh, from Daulat Beg Oldie to Galwan Valley, Pangong Tso, and Chumar. In addition, infrastructure such as the bridge at Pangong Tso will assist in the faster north-south movement of troops. What are China’s Intentions? China’s infrastructure buildup is aimed at reducing India’s advantage in the employment of airpower during a conflict along LAC. It is to overcome their shortfalls, neutralize India’s airpower edge over Tibet, and increase the PLA’s combat capability for war fighting along LAC. What are the Challenges for India? It would increase the PLA’s combat capability for war fighting along LAC. With the improved infrastructure in Tibet and Xinjiang, China could quickly mobilize its troops on the border from its bases. China would be able to neutralize India’s airpower edge over Tibet. What is the response from the Indian side? The Indian Army has redeployed significant forces from the Pakistan border to the northern front. A major push has been given to infrastructure development, improving surveillance, and construction of roads. After the 2020 standoff in eastern Ladakh, the government has sanctioned the construction of 32 roads along LAC. What Could be the Way Forward? Build Deterrence: India must develop a strategy that strengthens its deterrent posture. Deterrence is based on a strong army deployment along with LAC. India must focus on capabilities that seek to impose punishing costs in the event of a conflict. Tactical Thinking: Apart from infrastructure development and troop deployments, which are necessary measures, there is the need for India to define a long-term military strategy. Superior role of the IAF and Navy: It is needed to ensure operational readiness and dominant role of airforce in high-altitude operations as China doesn’t have many forward bases in the region, further harsh climate of Tibetan plateau makes transportation and mobilization of troops very difficult. India also need to develop a dominant naval position in the Indian Ocean. Going Beyond traditional means: Capabilities must be developed in all domains to impose costs beyond the immediate area of conflict through long-range missiles, cyber warfare, space weapons, etc.
Effective Subsidy Delivery Mechanism
Effective Subsidy Delivery Mechanism This editorial is based on “what commodities distribution of commodities should be distributed for free or at a subsidised level” was published in The Indian Express on 16/06/2022. It talks about wasteful expenditure occurs by the state by giving subsidies to non-essential goods and services, and how the state can utilise best practices to further enhance its delivery mechanism. For Prelims: Food subsidies, PDS (Public Distribution System), DBT (Direct Benefit Transfer), PLI (Production Linked Index), Poverty, Fiscal policy For Mains: Issues in the Implementation of Subsidy Distribution, Delivery mechanisms, and their fiscal implications Recently, the Punjab government announced a subsidy scheme to provide free electricity up to 300 units, this sparked the debate around the subsidies and what are the essential goods and services that required the government efforts to reach the downtrodden section of society. What are Subsidies? It’s the difference between the market price of a commodity, for example wheat and rice which are procured by the government, and the price at which they are being sold to the beneficiary in the form of subsidized food grain. Fiscal Cost of Subsidies: As India is a developing country, hence, there are limited budgetary resources to enhance subsidies net coverage to far more population. In the central budget, the food subsidy amounts to Rs. 2.06 lakh crore, which is almost 1.9% of the GDP in 208-19 and 2.5% in 2019-2020. The revenue to GDP ratio has been stagnating over a long period during 2010-11 to 2019-20, which is around the narrow range of 18.4% to 20.3%. Whereas in many developed and emerging market economies, this ratio tends to be much higher. In 2019, these ratios were 36% and 30.1% for the UK and USA, 48.6% and 43.6% for Sweden and Netherlands, and 31.5% for Brazil. What is the Delivery Mechanism for Dispersal of Subsidy? Support for low-income households in a targeted manner, which is the free or subsidized provision of food grains and services such as health and education e.g. – (Public Distribution System). For example, Direct Benefit Transfer (DBT) through providing money to the beneficiary’s bank account, so that a person is free to choose any food grains in the open market according to his choice and on the other hand the person avails subsidized food grain through PDS (Public Distribution System). Incentives to support selected categories of investors and producers like reduction of corporate taxes have been offered to promote investment in general, or in certain regions such as backward areas. e.g. – PLI (production linked incentive. PLI (Production Linked Incentives)-alternative methods include direct budgetary support and indirect support through tax concessions, schemes also require to be carefully designed to avoid their misuse and minimize their costs. What could be the Rationale for Selection of Subsidy? With limited budget, poor targeting and leakages we need to focus on commodities which are considered “essential” and “merit” goods. Primarily food grains, particularly wheat and rice, are supplied to target groups at a highly subsidized price through the public distribution system. Further there is enough evidence that such a distribution has helped to reduce poverty. There is also a category of goods which are called “merit” goods where significant positive externalities are associated with their consumption — for instance, health and education-related provisions, including midday meals and breakfast. In these cases, the benefit of the use of such goods extends beyond the immediate consumer to the wider community. subsidization or the free provision of essential and merit goods can be justified on the grounds of meeting social objectives but there are enormous examples of wasteful or populist subsidies recently Punjab government announced 300 units of free electricity which has led to an undue increase in the wasteful power consumption. Way Forward Innovative Solutions: Need proper targeting of beneficiaries leveraging technology. Regulation Body: There is a need to establish a efficient procurement and public distribution system which would manage procurement and distribution. So, that is to stop leakages and avoidable administrative costs. Choice of Goods & Services: The need of the hour is to limit subsidies to essential and merit goods only. Less Fiscal Space: There is a need to be very efficient and select subsidies on goods and services as there is limited overall financial support. Generating More Income: Governments, both state and centre need to pay adequate attention to further strengthening their fiscal revenue. Social Impacts: Although there are leakages in the PDS system it shows the major impact on the individuals and benefits go beyond the individual to a social and community level, but the benefits from direct income support and PLI are not yet measurable. So, the best way to continue with the PDS scheme is to stop its leakages wherever possible and side by side keep on experimenting with direct income support with measurable results.
The Hindu Analysis 18-06-2022
ADP to be extended to block, city level: PMGS Paper- 2, Govt Policies and Interventions, Governance.Context: The Hon’ble Prime Minister launched the Aspirational Districts plan in January 2018, with the goal of rapidly and successfully transforming 112 of the country’s most underdeveloped districts. Aspirational districts should be designated as “inspirational districts” in India, and the Aspirational District Programme (ADP) should be expanded to the block and city levels, according to the Prime Minister. Aspirational Districts’ Programme: Aspirational districts are those in India that suffer from low socioeconomic indices. In the context, they are aspirational in the sense that progress in these districts can lead to broader improvements in human development in India. The programme is supported by NITI Aayog at the level of the Government of India. Furthermore, particular Ministries have taken on responsibility for driving district success. The program’s goal is to track the progress of aspirational districts in real time. The basic features of the scheme: Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts by monthly delta ranking are, all pushed by a public movement. Performance Indicators: With the states serving as the primary drivers, this initiative focuses on the strengths of each district, finding low-hanging fruit for quick development and monitoring success by rating districts on a monthly basis. The ranking is based on incremental improvement in 49 Key Performance Indicators (KPIs) spanning five main socioeconomic themes: Health And Nutrition, Education, Agriculture and Water Resources, Financial Inclusion and Skill Development, and Infrastructure. The Champions of Change Dashboard displays the delta-ranking of Aspirational Districts as well as the performance of all districts. Other Features: The government is dedicated to improving people’ living conditions and fostering inclusive progress for all — “Sabka Saath Sabka Vikas aur Sabka Vishwas.” This initiative focuses on strengthening people’s capacity to engage fully in the expanding economy in order to allow them to maximise their potential. Districts are urged and encouraged to first catch up with the best district in their state, and then strive to be among the best in the country by competing with and learning from others in the spirit of competitive and cooperative federalism. This Aspirational Districts Programme Appraisal aims to assess the effectiveness of the Government of India’s flagship programme and generate evidence-based documentation that can be used to support NITI Aayog and other stakeholders in their efforts to address existing gaps, evidence-based planning, and decision making. The 2030 Agenda can only be realised with collaboration and dedication at all levels of government, as well as the numerous partners and stakeholders engaged. Subnational and local governments play a critical role in localising global goals, interpreting and delivering them as integrated programmes and services that improve people’s lives. This is where the largest influence will be felt. Key Findings: Better governance through convergence: Of the three approaches of Convergence, Competition, and Collaboration, most stakeholders interviewed cited Convergence as a critical way for improving district performance. The stakeholders emphasised the need of convergence in moving away from working in silos and toward synchronised planning and governance in order to meet the program’s objectives. Accelerating growth through competitive federalism: The competition part of the 3Cs was also considered as a useful technique in fostering improved monitoring and establishing healthy competition to meet programme aims. This has also worked as a motivator for districts to step up their efforts and track their success. Collaboration: While this feature of ADP has helped assure systematic and targeted efforts across many groups, it may be emphasised more. This might be especially useful as an alternate approach to address some technical competence shortages that districts experience. Top-level political leadership commitment: The commitment displayed by the country’s senior political leadership to bring about speedy growth in underdeveloped regions in India is a notable element of the programme that has considerably contributed to its success. What gets assessed gets done: In addition to the 3Cs strategy, the study discovered that the ADP’s emphasis on continuous real-time monitoring and data-driven decision-making has been a significant contribution to improved governance. This has aided district administrations in recognising a district’s strengths and shortcomings, leading in more planned and informed approaches to growth. Capacity building: While the ADP has increased the technical and administrative capacities of the districts, interviews with many stakeholders revealed a need to focus even more on this area. Other ideas include providing skill training for officials and employees, increasing hiring flexibility, and increasing incentives for boosting recruiting in these areas. Districts with High Aspirations vs Districts with Low Aspirations: One of the primary benefits of the ADP is that it has provided attention to districts that would otherwise be ignored owing to poor performance. This feature has benefited most districts in obtaining the necessary support for their districts. A crucial aspect that distinguishes the ADP from other development programmes is the clear and complete framework it gives to the districts. This framework has effectively guided districts in focusing their efforts on meeting the program’s objectives. In truth, the framework is an effective technique of ensuring that efforts are aligned with the country’s larger aims and are not arbitrary in nature. Criteria for Evaluation: Aspirational District Program Related Difficulties: Aspirational District Program is impacted by the issue of low fiscal resources. Aspirational District Program is implemented by several ministries, resulting in a lack of coordination. Data- High-quality administrative data is crucial for enhancing local programme implementation and planning. The Delta rating itself is mostly concerned with quantity (access coverage) rather than quality. -On-time textbook delivery in schools is included in the ranking index; nevertheless, textbook delivery may or may not be an issue in districts. -Furthermore, as indicated by the ASER study, the quality of education in India is dismal. Countering the Existing Gaps and Challenges: The programme was started with the goal of lowering inter- and intra-state inequities, and it is well on its way to accomplishing that goal. The distinctive aspects of introducing competition, handholding assistance from the centre and state, and collaboration with many agencies are
The Hindu Analysis 17-06-2022
Unemployment rate dips in first quarter of 2022: survey GS Paper 2, Employment, Human Resources. Context: According to the Periodic Labour Force Survey (PLFS), the urban unemployment rate fell to 8.2 percent in January-March 2022, down from 8.7 percent in the previous quarter (October-December 2021) and 9.3 percent in the same period in 2021. According to the survey report, the unemployment rate is defined as the proportion of jobless people in the labour force. The National Statistics Organization (NSO) revealed the survey findings for 2020-21, which showed a 0.6 percentage point fall in the jobless rate to 4.2 percent, down from 4.8 percent in 2019-20. India’s Labour Structure: In its 2008 report, India’s Ministry of Labour categorised unorganised labour in four categories. This categorization classified India’s unorganised labour force according to occupation, kind of work, severely troubled categories, and service categories. In India, there are several types of unemployment: Unemployment in Disguise: more individuals are employed than are actually required. It is largely found in India’s agricultural and unorganised sectors. Seasonal Joblessness: happens during specific times of the year. Agricultural labourers in India rarely have employment all year. Structural Unemployment: caused by a mismatch between the jobs offered in the market and the abilities of the available employees. Many individuals in India are unemployed because they lack the necessary skills, and training them is difficult owing to a lack of knowledge. Cyclical Unemployment: It is a product of the business cycle, in which unemployment rises during recessions and falls during expansions. In India, cyclical unemployment is small. It is a phenomenon encountered mostly in capitalist economies. Unemployment Due to Technology: It is the loss of jobs as a result of technological advancements. According to World Bank data from 2016, the share of employment threatened by automation in India has increased by 69 percent year on year. Frictional Unemployment: Frictional unemployment, also known as Search Unemployment, refers to the time gap between jobs while an individual is looking for a new work or changing occupations. It is sometimes referred to as voluntary unemployment since it is not caused by a lack of jobs, but rather by employees leaving their positions in pursuit of better chances. Vulnerable Employment: This refers to those who work informally, without appropriate job contracts, and hence without legal protection. These people are classified as “unemployed” since no records of their job are kept. It is a major source of unemployment. Unemployment Causes: A sizable population. Working population with little or no educational levels and occupational skills. Inadequate state assistance, regulatory difficulties, and inadequate infrastructural, financial, and market links to tiny/cottage industries or small firms, rendering such operations unviable due to cost and compliance overruns. A large workforce is linked with the informal sector as a result of a lack of needed education/skills, which is not reflected in any employment data. Domestic assistants, construction labourers, and so forth. The curriculum taught in schools and universities is out of date with regard to industry needs. This is the primary reason for structural unemployment. Inadequate infrastructural expansion and little investment in the manufacturing sector, limiting secondary sector job possibilities. Low agricultural production combined with a lack of other alternatives for agricultural workers makes the shift from primary to secondary and tertiary industries challenging. Regressive societal norms that discourage women from seeking/maintaining work. Impact: The issue of unemployment leads to the issue of poverty. Young individuals who have been unemployed for a long period engage in unlawful and illegal activities to make money. This also contributes to an upsurge in crime in the country. Unemployed people are readily swayed by antisocial influences. This causes people to lose trust in the country’s democratic principles. It is common for jobless persons to become hooked to drugs and alcohol or to attempt suicide, resulting in losses to the country’s human resources. It also has an impact on the country’s economy since the workforce that might have been gainfully employed to create resources becomes dependent on the remaining working population, raising socioeconomic expenses for the state. For example, a one percent rise in unemployment decreases GDP by two percent. Rate of Labour Force Participation (LFPR): The LFPR is essentially the proportion of the working-age (15 and above) population that is looking for employment. It shows an economy’s desire for work. It comprises both employed and jobless individuals. The Unemployment Rate (UER) is the fraction of the labour force that is jobless. The Importance of LFPR: More advanced than the Unemployment Rate (UER): The LFPR provides a more accurate representation of the country’s unemployment rate. Simply looking at the UER will understate the impact of unemployment in India. Demonstrates a shortage of “excellent” job: LFPR demonstrates how individuals of working age become disillusioned when they cannot find work. According to data from the Centre for Monitoring Indian Economy (CMIE), India’s labour force participation rate (LFPR) has dropped to 40% from an already low 47 percent in 2016. This indicates that not only is more than half of India’s working-age population (15 years and older) opting out of the labour market, but that this proportion is growing. Who keeps track of India’s employment data? The Decennial Population Census and the National Sample Survey Office’s countrywide 5-yearly surveys on employment and unemployment have been two primary sources of data on workforce and employment. The NSSO quinquennial surveys only give data up to 2011-12. As a result, it was superseded by the Periodic Labour Force Survey (PLFS), which began on an annual basis in 2017-18. PLFS is India’s first computer-based survey, launched in 2017 by the National Statistical Office (NSO). It was formed on the proposal of a committee chaired by Amitabh Kundu. It collects information on a variety of factors, including the degree of unemployment, the types of employment and their respective shares, the earnings obtained from various sorts of occupations, the number of hours worked, and so on. What are the statistics for women? Between 2017-18 and 2019-20, the female WPR ratio grew from 17.5 percent to 24 percent. When the ratio is multiplied by the female population, the yearly growth in female employees is 17 percent. Another encouraging finding
The Hindu Analysis 16-06-2022
The Fragile State of Nuclear DisarmamentGS Paper- 3, Energy and Security. Context: The Stockholm International Peace Research Institute (SIPRI) issued its yearbook a few days ago, detailing certain patterns in international security over the last year. Russia leads the way in terms of absolute quantities of nuclear weapons. During the 2017-2021 timeframe, India is the leading importer of weaponry. Other nations in the top five list of weaponry importers are Saudi Arabia, Egypt, China, and Australia. SIPRI estimates that these five countries account for 38% of total worldwide weaponry imports. Recent geopolitical developments in nearly every part of the world have made the global security situation more volatile. Military modernization is considered as a worldwide trend. Over the years, all nuclear-weapons nations have claimed and sought to modernise various aspects of their military forces. Nuclear Disarmament: The act of lowering or eliminating nuclear weapons is known as nuclear disarmament. It can also be the final state of a nuclear-weapons-free society in which nuclear weapons have been fully eradicated. Denuclearization is also used to denote the process that leads to total nuclear disarmament. Because of the grave dangers inherent in nuclear war and the possession of nuclear weapons, treaties on disarmament and non-proliferation have been agreed upon. Nuclear disarmament advocates argue that it would reduce the likelihood of nuclear conflict, particularly if it occurred accidently. Nuclear disarmament, according to critics, would undercut deterrence and increase the frequency of conventional warfare. Important Treaties: Partial Test Ban Treaty (PTBT) of 1963 prohibited all nuclear weapons testing except underground. Nuclear Non-Proliferation Treaty (NPT) was signed in 1968 and entered into force in 1970. An international pact (now signed by 189 countries) aimed at limiting the proliferation of nuclear weapons. The pact is built on three pillars: non-proliferation, disarmament, and the right to utilise nuclear technology peacefully. Interim Agreement on Offensive Arms (SALT I) 1972: The Soviet Union and the United States agreed to a freeze on the number of intercontinental ballistic missiles (ICBMs) and submarine-launched ballistic missiles (SLBMs) that they would deploy. Anti-Ballistic Missile Treaty (ABM) 1972: The United States and the Soviet Union agreed to install ABM interceptors at two locations, each with up to 100 ground-based launchers for ABM interceptor missiles. In a 1974 Protocol, the United States and the Soviet Union agreed to only install an ABM system at one location. SALT II (Strategic Arms Limitation Treaty): SALT II, which replaced SALT I, confined the Soviet Union and the United States to the same number of ICBM launchers, SLBM launchers, and heavy bombers. Multiple Independent Re-entry Vehicles were also restricted (MIRVS). Intermediate-Range Nuclear Forces Treaty (INF) of 1987 prohibited the United States and the Soviet Union from using land-based ballistic missiles, cruise missiles, and missile launchers with ranges of 500–1,000 kilometres (310–620 mi) (short medium-range) and 1,000–5,500 kilometres (620–3,420 mi) (long medium-range) (intermediate-range). Strategic Arms Reduction Treaty (START I)—signed in 1991 and approved in 1994—limited long-range nuclear forces in the United States and newly independent states of the former Soviet Union to 6,000 attributable warheads on 1,600 ballistic missiles and bombers. Strategic Arms Reduction Treaty II (START II)—signed in 1993 but never implemented: START II was a bilateral agreement between the United States and Russia that tried to commit each side to installing no more than 3,000 to 3,500 warheads by December 2007. It also prohibited the use of multiple independent re-entry vehicles (MIRVs) on intercontinental ballistic missiles (ICBMs) Strategic Offensive Reductions Treaty (SORT)—signed in 2002, entered into force in 2003: Russia and the United States agreed to limit their “strategic nuclear weapons” (a phrase that remained undefined in the pact) to between 1,700 and 2,200 by 2012. The deal was widely condemned by arms control campaigners for its vagueness and lack of depth. In 2010, the New Start Treaty took its place. CTBT (Comprehensive Nuclear-Test-Ban Treaty)—signed in 1996 but not yet in force: The CTBT is an international treaty (now signed by 181 states and ratified by 148 states) that prohibits all nuclear explosions in all circumstances. Despite the fact that the pact is not in force, Russia has not tested a nuclear bomb since 1990, and the US has not since 1992. New START Treaty—signed in 2010, entered into force in 2011: replaces the SORT Treaty, decreases deployed nuclear weapons by roughly half, and will be in effect until 2026. Treaty on the Prohibition of Nuclear Weapons– signed in 2017, went into force on January 22, 2021: forbids its parties from possessing, manufacturing, developing, or testing nuclear weapons, as well as assisting in such operations. Only South Africa has ever entirely dismantled an indigenously created nuclear arsenal. South Africa’s apartheid regime developed a half-dozen primitive fission bombs in the 1980s, but they were destroyed in the early 1990s. Deterrence Theory: Deterrence is broadly defined as any use of threats (implicit or explicit) or restricted force to deter an actor from acting (i.e., maintain the status quo). During the Cold War, the concept acquired popularity as a military tactic including the use of nuclear weapons. It is linked to, but not the same as, the notion of mutual assured destruction, which mimics the preventive nature of a full-scale nuclear assault that would decimate both parties in a nuclear conflict. The primary difficulty of deterrence is how to credibly threaten the opponent with military action or nuclear retribution notwithstanding the costs to the deterrer. Nuclear Disarmament Issues: Nuclear ‘Haves’ and ‘Have-Nots’: Proponents of disarmament are nuclear-armed countries themselves, establishing a nuclear monopoly. Peaceful Nuclear Explosion (PNE) concept: performed for non-military objectives such as mining. India’s commitment to nuclear disarmament: India has long advocated for a universal commitment and a worldwide, non-discriminatory multilateral system. It described a working paper on nuclear disarmament that was submitted to the United Nations General Assembly in 2006. India participated in the Nuclear Security Summit process and has attended International Conferences on Nuclear Security organised by the International Atomic Energy Agency (IAEA) on a regular basis. India is a member of the Nuclear Security Contact Group (although it has not signed the Nuclear Non-Proliferation Treaty (NPT)). India has
Daily News 18-June-2022
Indian Economy Linking Credit Cards With UPI GS Paper – 2,3 Government Policies & Interventions, Mobilization of Resources, Growth & Development. Why in the news? The Reserve Bank of India (RBI) has proposed that credit cards be linked to the Unified Payments Interface (UPI) network. A credit card is a financial instrument issued by banks that has a predetermined credit limit and allows for cashless transactions. It allows cardholders to pay a merchant for products and services based on the amount of debt she has accumulated. This is meant to increase user convenience and broaden the scope of Digital Payments. What exactly is the Unified Payment Interface? About: It is a more advanced form of Immediate Payment Service (IMPS), a 24-hour funds transfer service that makes cashless payments faster, easier, and smoother. UPI is a system that integrates several bank accounts into a single mobile app (of any participating bank), combining several banking features, smooth fund routing, and merchant payments under one umbrella. UPI is now the most popular of the National Payments Corporation of India (NPCI)-managed systems, which include the National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar enabled Payment System (AePS), Bharat Bill Payment System (BBPS), RuPay, and others. Credit Card and UPI must be linked: With over 26 crore unique users and five crore businesses on the network, UPI has become a popular way of payment in India over time. In May 2022, the interface completed over 594 crore transactions totaling Rs 10.4 lakh crore. At the moment, the UPI supports transactions by connecting savings/current accounts via debit cards. What is the Importance of the Change? Additional Payment Options: The arrangement is expected to give clients with an extra payment option, increasing convenience. Credit Card Use Will Rise: It will broaden credit card acceptance and usage. Given UPI’s widespread adoption, credit card usage is expected to skyrocket in India. Credit Building Opportunities on UPI: It opens new opportunities to establish credit on UPI through credit cards in India, where a number of firms such as Slice, Uni, One, and others have developed in recent years. Increase Transactions at More Merchant Websites: It is anticipated that it would increase transactions and acceptance at additional merchant sites. People who want to pay by credit card in order to benefit from a longer pay-back period or loans on credit-card outstanding, or who do not want to touch their savings at the time of purchase, can do so using UPI. Increase overall spending: The change will significantly increase overall credit card spending – now, credit card spending is more than double that of debit card spending. More spending is a force multiplier for the economy in general. Increase the average monetary value of financial transactions: This approach is likely to affect the average ticket size of financial transactions in addition to speeding up digital transactions. Currently, the average ticket size per transaction is Rs 1,600, whereas credit cards have a ticket limit of Rs 4,000. As a result of the new change, researchers predict that the UPI transaction ticket size will rise to between Rs 3,000 and Rs 4,000. What are the Obstacles? It is unclear how the Merchant Discount Rate (MDR) will be applied to credit card UPI transactions. The MDR is a fee levied by a merchant’s issuing bank for taking credit and debit card payments from customers. According to a rule that has been in place since January 2020, UPI and RuPay are subject to zero-MDR, which means that no fees are levied on these transactions. The availability of zero-MDR on UPI may possibly be one of the reasons why other card networks, such as Visa and Mastercard, have not yet been onboarded to UPI for credit cards.
Daily News 17-June-2022
ODOP: Handicraft Sector GS Paper – 2 Government Policies & Interventions, Growth & Development. Why in the news? The Ministry of Textiles has opened the ‘Lota Shop’ inside the National Crafts Museum in New Delhi. Central Cottage Industries Corporation of India Limited (CCIC), also known as the Central Cottage Industries Emporium, opened the shop. It exhibits beautiful handcrafted curios, souvenirs, handicrafts, and fabrics based on traditional Indian artisan traditions. The administration also underlined its commitment to ‘One District, One Product,’ which will boost the handicraft and artisan sectors. What exactly is the One District One Product? About: The Ministry of Food Processing Industries launched the ‘One District, One Product’ (ODOP) programme to assist districts in reaching their full potential, fostering economic and socio-cultural progress, and creating employment possibilities, particularly in rural areas. It was started by the Uttar Pradesh government in January 2018 and, due to its success, was later adopted by the Central Government. This effort is carried out in conjunction with the Directorate General of Foreign Trade (DGFT), Department of Commerce’s ‘Districts as Exports Hub’ initiative. The ‘Districts as Exports Hub’ initiative gives financial and technical aid to district level companies so that small-scale industries can be helped and local people can be employed. Objectives: Its goal is to identify, promote, and brand a product from a specific district. To promote the product in which the district specialises in order to convert every district in India into an export powerhouse. It intends to achieve this via scaling production, supporting local firms, discovering prospective overseas clients, and so on, so contributing to the realisation of the ‘Atmanirbhar Bharat’ goal. What is the state of India’s handicraft industry? About: Handicrafts are objects made by hand with simple tools rather than employing mass manufacturing processes and machinery. While handicrafts are quite similar to basic arts and crafts, there is one significant difference. The products created as a consequence of the efforts are attractive in nature as well as developed for a specific function or usage. For decades, the handloom and handicraft industry has been the backbone of India’s rural economy. India manufactures woodware, art metal wares, handprinted fabrics, embroidered products, zari goods, imitation jewellery, sculptures, pottery, glassware, attars, agarbattis, and other items. Trade: India is one of the world’s largest exporters of handicrafts. The entire handicraft export from India, excluding handmade carpets, was USD 174.26 million in March 2022, an increase of 8% from February 2022. Total exports of Indian handicrafts were valued at USD 4.35 billion in 2021-22, a 25.7 percent increase over the previous year. The Sector’s Importance: The largest source of employment: It is one of the major job creators after agriculture, providing a vital source of income for the country’s rural and urban populations. Handicraft is one of the most important industries in India, employing around seven million people. Eco-Friendly: The industry is well known for being a pioneer of environmentally friendly zero-waste methods and operates on a self-sustaining business model, with craftspeople often growing their own raw materials. Challenges: Artisans confront problems such as a lack of capital, a lack of technological penetration, a lack of market information, and a weak institutional foundation for growth. Furthermore, the sector is afflicted by the underlying contradiction of handmade items, which are often at conflict with manufacturing scale. What Factors Encourage Sector Growth? Government Schemes: The national government is actively working to grow the industry so that it can reach its full potential. Several plans and initiatives are being implemented to assist artisans in overcoming the obstacles they encounter. The Emergence of Dedicated Trade Platforms: Few platforms, such as Craftezy, have developed to assist Indian craftsmen in gaining awareness in domestic and global markets. These worldwide handicraft trade platforms provide a free supplier induction procedure and strive to give the global market an orderly appearance. Using Technology to Promote Inclusion: Technology that allows people to communicate across borders has proven to be a godsend to the handcraft sector. E-commerce has given seamless access to consumer goods, enabling inclusive growth because all manufacturers from any area of the world can present their items through these online platforms. Even social media platforms are assisting in the global marketing of Indian handicrafts. Imports vs. Exports: Over the previous five years, exports of Indian handicrafts have increased by more than 40%, with three-fourths of all handicrafts exported. Indian handicrafts are heavily exported to over a hundred nations, with the United States alone accounting for around one-third of India’s handicraft exports. Changes in Artisan Behavior: To increase their revenue, artists learn new skills and develop goods that match changing market demands. As a result of the introduction of technology and the comfort it brings to their table, there is a substantial change in the behaviours of handcraft vendors and customers. What are the Government Initiatives Involved? Ambedkar Hastshilp Vikas Yojana: To assist artisans with infrastructural, technology, and human resource development requirements. The goal of mobilising craftspeople into self-help groups and societies with the goal of facilitating bulk manufacturing and economies in raw material purchase. Mega Cluster Plan: This scheme’s goals include job creation and raising craftsmen’ living standards. This programme takes a cluster-based strategy to growing infrastructure and production chains at handicraft centres, particularly those in rural areas. Marketing Assistance and Services Scheme: This scheme offers interventions for domestic marketing events to artisans in the form of financial assistance to help them organise and participate in trade fairs and exhibitions around the country and overseas. Scheme for Research and Development: This effort was launched to collect feedback on the economic, social, aesthetic, and promotional elements of crafts and craftsmen in the sector, with the goal of assisting in the implementation of the aforementioned plans. National Development Program for Handicrafts: Surveys, design and technology upgrades, human resource development, insurance and credit facilities for artisans, R&D, infrastructure development, and marketing support activities are all significant components of this programme. Comprehensive Cluster Development Scheme for Handicrafts: This scheme’s approach is to scale up infrastructure and the
Daily News 08-June-2022
India’s COVID-19 vaccination coverage has crossed 194.41 Crore. President Ram Nath Kovind has said that in order to achieve the larger goals, improving the quality of institutions of higher learning is of vital importance. Inaugurating the two-day Conference of Vice-Chancellors of Central Universities and Directors of Institutions of National Importance at Rashtrapati Bhavan. Prime Minister Modi to inaugurate Biotech Startup Expo – 2022 in New Delhi on Thursday. India Meteorological Department (IMD) issues orange alert for some of the Northern parts of the country over the heatwave condition Union Minister of State for Personnel Dr Jitendra Singh interacted and felicitated first 20 All India Toppers of Civil Services Exam 2021 who called on him at the Department of Personnel and Training headquarters in New Delhi, on 07 June, Civil Aviation Minister Jyotiraditya Scindia announced first-ever National Air Sports Policy-2022 in New Delhi. The objective of this policy is to include India among the top air sporting nations by 2030. It is also aimed at providing a safe, affordable and sustainable air sports ecosystem in the country. Eleven air sports including Aerobatics, Ballooning, Gliding, Parachuting, Powered aircraft and Rotorcraft will be promoted through this policy. Home Minister Amit Shah inaugurates new building of National Tribal Research Institute in New Delhi. He said it will play a crucial role in tribal development. ANDHRA PRADESH’S ruling YSRCP has hired political strategist Prashant Kishor’s Indian Political Action Committee (I-PAC) for a second time ahead of 2024 state Assembly polls, a party leader has confirmed. BIHAR : Union Minister Nitin Gadkari inaugurates and lays foundation stones of 15 National Highway projects in Patna and Hajipur in Bihar. J&K : Three Lashkar-e-Taiba terrorists, including two Pakistani were eliminated by security forces in seperate encounters in North Kashmir. KARNATKA : PM Modi to lay foundation stone for Bengaluru Suburban Rail Project on June 20. The 15,000- crore rupee project will connect Bengaluru city with its suburbs through a Rail-based rapid transit system. Dubbed as India’s most integrated Rail project, it is likely to be completed by 2026. The network will span over 148 kilometres with 57 stations. A suspected Hizbul Mujahideen terrorist has been arrested from Bengaluru’s Okalipuram in a joint operation by Jammu and Kashmir Police and Indian Army’s Rashtriya Rifles. According to officials, the accused had been living in the city for past two years. The Uppinangady Govt First Grade College management suspended 23 girl students, who staged a protest demanding permission to wear hijab inside classrooms last week. The Karnataka High Court in March stated that the hijab isn’t an essential religious practice in Islam, making it mandatory for everyone to wear uniforms provided by the educational institutions. KERALA : The prime accused in Kerala gold smuggling case, Swapna Suresh, on Tuesday claimed CM Pinarayi Vijayan, his wife Kamala and daughter Veena were involved in the scam. Suresh further said Vijayan’s additional private secretary CM Raveendran, then Principal Secretary Nalini Netto and then minister KT Jaleel were also involved. RAJASTHAN , Border Security Force has arrested four persons with 3 and a half KG of heroin from the international border in the Shri Ganganagar district. The Rajasthan Police has sent a notice to BJP MLA Chandrakanta Meghwal in a five-year-old assault case. Meghwal, who represents the Keshoraipatan assembly constituency. TELANGANA : Coin Exhibition inaugurated in Hyderabad as part of ‘Azadi Ka Amrit Mahotsav’ celebrations. Chairman and Managing Director of India Government Mint Tripti Patra Ghosh said, the exhibition reflects about 120 years of the history of the region as well as the nation. An AIMIM MLA’s son has been named as an accused in the gangrape case of a minor girl in a car in Hyderabad, police said on Tuesday. All accused, including one adult and five minors, are in police custody. UTTAR PRADESH : Police have arrested 12 more people in connection with Kanpur violence, taking the total number of arrests made to 50, an official said. Violence erupted in parts of Kanpur on Friday in protest against “insulting comments” on Prophet Muhammad. FINANCE USD ₹77.61💷 GBP ₹97.79BSE Sensex 55,107.34NIFTY : 16,416.35 Finance Minister Nirmala Sitharaman reviewed the progress in setting up of the National Asset Reconstruction Company Limited (NARCL). It is the special purpose Asset Reconstruction Company for taking over the large value NPA accounts above 500 crore rupees from the banks. The World Bank on Tuesday cut India’s FY23 economic growth forecast to 7.5% from 8% estimated earlier in April. It cut the forecast due to “headwinds from rising inflation, supply chain disruptions, and geopolitical tensions offsetting buoyancy in the recovery of services consumption from the pandemic”. World Bank had trimmed the projection for India from 8.7% to 8% in April. ENTERTAINMENT Sidharth Malhotra -Rashmika Mandanna starrer Mission Majnu will now release on June 10, 2022. Sidharth Malhotra is playing the role of a RAW agent who leads a covert operation in Pakistan. The movie also marks the Bollywood debut of South sensation Rashmika Mandanna. The movie will now clash with Kiara Advani and Vicky Kaushal”s Govinda Naam Mera DEFENCE The Ministry of Defence has issued three separate notifications amending the rules of the Army, the Navy and the Air Force for the appointment of the next Chief of Defence Staff CDS. Includes serving or retired three-star Army Lt General, Air Marshal and Vice Admiral for the post. Serving Three-star officers Lieutenant General in Army, Air Marshal in Air Force and Vice-Admiral in Navy or retired Sevice Chiefs or three-star officers can be appointed Chief of Defence Staff if considered necessary in the public interest. ✈️ INTERNATIONAL NEWS The three-nation tour of Vice President M. Venkaiah Naidu to Gabon, Senegal and Qatar ended as he departed for New Delhi from Doha on 07 June. Vice President M. Venkaiah Naidu reiterates, India’s commitment to strengthen ties with Qatar. Union Minister of Commerce and Industry Piyush Goyal has said, the government will hold negotiations at the World Trade Organization (WTO) to protect the interests of the country’s fishermen. UP-born billionaire Gupta brothers
Daily News 07-June-2022
After ‘fat finger’ trade, NSE cautions brokers against executing non-genuine trades A ‘fat finger’ trade on the National Stock Exchange’s (NSE) derivatives section may have resulted in a loss of Rs 200-250 crore to a brokerage house. This could be the largest trading blunder in the history of the home market. The most important stock exchange , National Stock Exchange (NSE) has issued a warning to stock brokers about fulfilling orders that appear to be non-genuine, which could cause a departure in the regular price discovery process Religious conversion, unless forced, is not prohibited: Delhi HC Recently, a bench of the Delhi High Court in a response to a petition regarding religious conversion in India held that a religious conversion, unless forced, is not prohibited as every person has the right guaranteed under the Constitution to choose or profess any religion. Keep ESZ of 1 km around forests: SC The Supreme Court directed that every protected area, national park and wildlife sanctuary across the country should have a mandatory eco-sensitive zone (ESZ) of a minimum one km starting from their demarcated boundaries. Gecko found in Andhra, Odisha turns out to be a new species A gecko discovered in Visakhapatnam in 2017 was previously assumed to be a member of a known species, but it has now been classified as a new species. It was identified as Eublepharis pictus, after a phylogenetic analysis and morphological comparisons. It appears to be prevalent in the forests of Andhra Pradesh and Odisha. They are also called Painted Leopard Gecko. Supreme Court objects to frivolous PIL petitions Recently, a Supreme Court bench of justice B.R. Gavai and Hima Kohli initially asked the litigant to pay ₹18 lakh, that is, ₹1 lakh for every one of the 18 minutes the case took up. However, the court later, in its order, slashed the amount to ₹2 lakh on the request of the litigant’s counsel.
FAT FINGER TRADE 2022
FAT FINGER TRADE A ‘fat finger’ trade is an erroneous action caused by hitting the wrong key in the market. Some of these orders, which are placed at the extreme end of the operational range, are passively held in the order book, according to the NSE. Trades resulting from such orders, which are issued at unrealistic prices, cause price anomalies. Few trading members had placed orders on the exchange platform at prices that did not reflect the current market price and were far distant from the last traded price, according to the exchange. Trading members are also placing orders at prices that are at the extreme end of the exchange’s operational range and have no obvious or economic logic when compared to the last traded price, according to the statement. NSE’s Stance The NSE has asked its trading members to refrain from initiating or executing transactions that appear to be non-genuine on their own account or on behalf of their clients, as well as from engaging in practises that cause order book anomalies. They’ve been told to put in place suitable internal systems and procedures to ensure that such orders/transactions, including algorithmic trades, don’t end up on the exchange’s trading system. “Non-compliance with the circular will result in appropriate disciplinary action which may include departure from trading terminals.
