Premium
This is an archive article published on August 22, 2023

UPSC Key—22 August, 2023: BRICS, Onion production in India and Ragging

Exclusive for Subscribers from Monday to Friday: Have you ever thought about how Liberalised Remittance Scheme (LRS) or Tax Collected at Source are relevant to the UPSC Exam? What significance do topics like Last 15 minutes, anti-ragging measures and Fortaleza Declaration have for both the preliminary and main exams? You can learn more by reading the Indian Express UPSC Key for August 22, 2023.

UPSC, upsc 2024, Upsc Prelims results, UPSC key terms, upsc news, upsc syllabus, UPSC KEY, Upsc Key terms, IAS current affairs, upsc Key Indian express, The Indian Express current Affairs, Is Indian Express Good for UPSC, upsc today news, upsc newspaper, Indian express today important news for upsc, Indian express monthly current affairs, What should I read in Indian Express for UPSC today, UPSC Answer Key, UPSC Online, IAS, IPS, upsc current affairs news, UPSC KEY News, UPSC Civil services news, UPSC Prelims 2023, UPSC Mains 2023, UPSC Mains 2023, UPSC Mains 2024, UPSC Prelims 2024, UPSC General Studies 1, UPSC General Studies II, UPSC General Studies III, UPSC General Studies IV, upsc, upsc mains 2023, UPSC mains answer writing, upsc GS paper 1, upsc mains GS paper 1, upsc geography, upsc history, gs paper 1, upsc, upsc mains 2023, UPSC mains answer writing, upsc gs paper 4, upsc mains gs paper 4, upsc ethics, gs paper 4, sarkari naukri, government jobs, Current events of national and international importance, History of India and Indian National Movement, Indian Heritage and Culture, History and Geography of the World and Society, Governance, Constitution, Polity, Social Justice and International relations, Technology, Economic Development, Bio diversity, Environment, Security and Disaster Management Ethics, Integrity and Aptitude, Priya Kumari Shukla, Indian Express UPSC Key, Upsc Indian Express, Rahul Gandhi, Rahul Gandhi Manipur Visit, Congress, BJP, Narendra Modi, PM, Amit Shah, Home Minister, Arvind Kejriwal, AAP, Ordinance, Delhi, Capital, NCR, basic structure of the Constitution, Constitution, Supreme Court, Manipur Violence, Russia’s Luna-25, crash landing, lunar economy, Russia’s first Moon mission, Luna 25 and Chandrayaan 3, Mars Orbiter Mission, Ashoka’s policy of Dhamma, edicts of Ashoka, deciphered Ashoka edicts, Major rock edicts and Minor Rock Edicts sites, Mauryan Empire, Court Art and Popular Art, BIMARU states, Madhya Pradesh, Cauvery water-sharing dispute, Tamil Nadu, Karnataka, Cauvery Water Management Authority, Cauvery River Dispute, Interstate water dispute, Multidimensional Poverty Index (MPI), Malnutrition and hunger, National Food Security Act, 2013, Manmohan Singh, hurricane Hilary, United States, Prakash Raj, Chandrayaan-3, BRICS, Brazil, Russia, India, China and South Africa, Johannesburg, Xi Jinping, Evolution of BRICS, BRICS summit, India and Greece, onion prices, Nashik, onion exports, ragging, Jadavpur University, Supreme Court said on ragging, roles and responsibilities of the UGC, Laws to Prevent Ragging in India, Digital Personal Data Protection Bill, 2023, Chandrayaan-3 mission, Last 15 Minutes, Liberalised Remittance Scheme, Tax Collected at Source,UPSC Key August 2023: Here's what you should be reading from the August 22, 2023 edition of The Indian Express
Listen to this article
UPSC Key—22 August, 2023: BRICS, Onion production in India and Ragging
x
00:00
1x 1.5x 1.8x

Important topics and their relevance in UPSC CSE exam for August 22, 2023. If you missed the August 21, 2023 UPSC CSE exam key from the Indian Express, read it here

FRONT PAGE

Re-issue IDs lost due to violence, upgrade compensation in Manipur: SC panel

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: 

• General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

Story continues below this ad

• General Studies III: Linkages between development and spread of extremism and Role of external state and non-state actors in creating challenges to internal security

• General Studies III: Role of external state and non-state actors in creating challenges to internal security.

Key Points to Ponder:

• What’s the ongoing story- THE COMMITTEE of former high court judges appointed by the Supreme Court to oversee relief and rehabilitation in Manipur has submitted three reports — on loss and reconstruction of “essential documentation”; upgrading the compensation; and appointment of domain experts to facilitate its work.

• The panel is headed by whom?

• Why the Supreme Court of India constituted the Committee?

• The Committee of former high court judges appointed by the Supreme Court to oversee relief and rehabilitation in Manipur has submitted three reports-what exactly there in the report?

• What is the Manipur Victim compensation scheme?

• How Supreme Court of India responded?

Story continues below this ad

• For Your Information-The panel is headed by former Jammu and Kashmir High Court Chief Justice Gita Mittal and includes former Bombay High Court judge Justice Shalini Phansaklar Joshi and former Delhi High Court judge Justice Asha Menon. Taking note of the reports, the Supreme Court on Monday said it would issue detailed orders regarding the committee’s recommendations at the next hearing on August 25. “At this moment we will say that the expert committee constituted by this court has filed three reports namely: a report highlighting the fact that several residents of Manipur may have lost their essential documentations which need to be re-constructed; the Manipur victims compensation scheme needs to be upgraded to bring it in conformity with the scheme propounded by NALSA (National Legal Services Authority); the proposal of the committee for the appointment of domain experts to facilitate its work,” said a three-judge Bench headed by Chief Justice of India D Y Chandrachud.

• What do you understand by the term ‘ethnic violence?

• What is the cause of ethnic violence in Manipur?

• What was the triggering factor that escalated to so much violence in Manipur?

• What are the steps taken by the Government of India and the Manipur Government to curb violence in the state?

Other Important Articles Covering the same topic:

📍After politics and police have failed — a roadmap to heal Manipur

Story continues below this ad

India-China ties in focus as PM leaves for BRICS summit today

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies II:  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Points to Ponder:

• What’s the ongoing story- AS PRIME Minister Narendra Modi leaves for the BRICS (a grouping of Brazil, Russia, India, China and South Africa) summit in Johannesburg on Tuesday, all eyes are on a possible meeting between him and Chinese President Xi Jinping.

• BRICS-Know in detail

• Evolution of BRICS-Know in Detail

• Do you think that Shanghai Cooperation Organisation and BRICS are the two sides of the same coin for India?

Story continues below this ad

• For Your Information-Like the Shanghai Cooperation Organisation that was formed in 2001, the idea of the BRICS was a simple one — to limit American power in the unipolar moment of the 1990s. The Russians, who were looking for a way to reclaim their global position after the collapse of the Soviet Union, found BRICs a useful platform to counter the West. The Russia-India-China (RIC) forum — the so-called strategic triangle — pushed by Moscow provided the scaffolding on which to mount the new organisation. If the ambition of the BRICS was global, the focus of the SCO was regional — to keep the US and its “colour revolutions” out of the shared inner Asian periphery of Russia and China. The “Shanghai Five” was convened by Russia and China in 1996 along with three central Asian states — Kazakhstan, Kyrgyzstan, and Tajikistan — three former Soviet Republics that shared borders with China. Formally set up in 2006, the four initial members of the BRICs forum welcomed South Africa into their ranks in 2010 to make it BRICS. Both the SCO and the BRICS are now debating the expansion of their membership as the worldwide interest in them grows. Notwithstanding the ambitious plans for their expansion, the SCO and BRICS are running out of their geopolitical steam as the context that brought them together at the turn of the millennium no longer exists.

• Evolution of BRICS from Russia-China (RC) to Russia-India-China (RIC) to Brazil- Russia-India-China (BRIC) to Brazil-Russia-India-China-South Africa (BRICS)

• What is the Fortaleza Declaration?

• Brazil, Russia, India, China and South Africa (BRICS) Economy-Key Features

• RIC (Russia-India-China) out of BRICS-Significance and Stature in World Politics?

• Why BRICS Matters?

• Is the BRICS alliance no longer relevant and effective?

Story continues below this ad

• Do you Know-It would be their first scheduled bilateral meeting since the border standoff began in May 2020. Saying that the schedule is “still evolving”, officials did not rule out a meeting between the two leaders. The BRICS summit is being held in-person this time, after three years of virtual meetings. Expansion of BRICS is a major item on the agenda. Around 23 countries are learnt to have submitted their applications for membership of the grouping. The BRICS (Brazil-Russia-India-China-South Africa) brings together five of the largest developing countries, representing 41 per cent of the global population, 24 per cent of global GDP and 16 per cent of global trade. Modi will attend the summit from August 22-24. On August 22, after reaching in the afternoon, he will attend the BRICS Business Forum leaders’ dialogue, followed by a BRICS Leaders’ Retreat in the evening. A discussion on global developments and concerns arising out of those developments is expected during the leaders’ retreat. On August 24, he will participate in a special event, “BRICS – Africa Outreach and BRICS Plus Dialogue”, being organised after the summit, which will include other countries invited by South Africa. During these sessions, the concerns and priorities of the Global South will be discussed, where the focus will be on partnership with Africa. Modi last visited South Africa in July 2018, for the 10th BRICS summit. He also went for a bilateral visit in July 2016. South African President Cyril Ramaphosa had visited India in January 2019, when he was the chief guest at the Republic Day celebrations. After his visit to South Africa, Modi will pay an official visit to Greece on August 25, at the invitation of its Prime Minister, Kyriakos Mitsotakis. “This will be the first visit by an Indian Prime Minister to Greece in 40 years,” the Foreign Secretary said. “Prime Minister will hold talks with Prime Minister Mitsotakis to discuss ways to further deepen the relationship. He will also interact with business leaders from both countries, as well as with the Indian community in Greece,” Kwatra said. The MEA said that India and Greece enjoy civilisational ties, which have strengthened in recent years through cooperation in areas like maritime transport, defence, trade and investments, and people-to-people ties. Then Prime Minister Indira Gandhi was the last Indian PM to visit Greece, in September 1983. The then Greece Prime Minister, Andreas Papandreou, had visited India thrice – in November 1984 for Indira Gandhi’s funeral; in January 1985 to attend a summit on nuclear disarmament; and in January 1986 as the chief guest for the Republic Day function.

• The geopolitics of BRICS looks quite different today-how?

Other Important Articles Covering the same topic:

📍Brazil, Russia, India, China and South Africa (BRICS)

📍Why BRICS Still Matters

📍BRICS and the creation of a multipolar world

Previous year UPSC Prelims Question Covering similar theme:

📍Consider the following statements: (UPSC GS1, 2016)
1. New Development Bank has been set up by APEC.
2. The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

After excess rain & fall in prices, onion farmers hit by export duty, threaten stir

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Story continues below this ad

Mains Examination: General Studies III: Major crops-cropping patterns in various parts of the country, – different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers.

Key Points to Ponder:

• What’s the ongoing story- On August 5, Sunil Sonawane’s 15 quintals of onions fetched a rate of Rs 1,650/ quintal at Lasalgaon mandi, in Nashik district of Maharashtra. In May, the 48-year-old had dumped about 200 quintals of his total 350 quintals produce for Rs 300-350/ quintal. As prices at India’s largest wholesale market for the bulb in Nashik district crossed Rs 2,000/ quintal last week, Sonawane saw “acche din” (good days) ahead. The new prices would have helped him to more than recoup his earlier losses. But his hopes have received a setback with the Union Finance Ministry’s notification on August 19, imposing a 40 per cent duty on onion exports.

• Why are onion prices on the rise?

• For Your Information-Prices of onions have seen a steep rise since the start of August. At Lasalgaon’s wholesale market in Niphad taluka of Nashik, the average price of the bulb has risen from Rs 1,370/quintal on August 1 to Rs 2,050/quintal on August 19. In contrast, back in March-May, onion growers faced financial distress, when their produce was sold between Rs 500/quintal and Rs 700/quintal. The present price rise has two aspects to it: first is the shortage in stored produce; the second has to do with lower-than-expected acreage of the bulb itself. Unlike other vegetables such as okra or beans, onions are not grown around the year. Farmers take three crops of which the last one feeds the market for the longest duration. Rabi, the summer crop, is sown in December-January and harvested post-March. Kharif is sown in June-July and harvested post-September, while the late Kharif crop is sown in September-October and harvested in December-January. Of the three crops Rabi is most amenable to storage given its lower moisture content and is stored in on-field storage structures called kanda chawls. Farmers offload the stored onions in tranches to ensure better realisation. The fallout began last year when the country saw a dip in onion acreage. The Crop and Weather Watch Group noted that as against the 3.76 lakh hectares target for onion, the country had seen sowing over 3.29 lakh hectares. The situation worsened due to the damage to the Rabi crop in March–April, when most onion-growing states, including Maharashtra, saw unseasonal rain and hailstorm. Also, farmers, who generally offload their Rabi onions only post-June, were forced to do so from May itself because of quality concerns of the stored produce. Therefore, the month of May saw increased arrivals which along with inferior quality saw a price crash.
The Maharashtra government had in March announced a special scheme to support onion growers with a subsidy of Rs 300/quintal. Most farmers said the scheme is yet to reach them. As a result, the supply-demand mismatch has resulted in the present price rise, which traders said was normal

• What has onion exports to do with the present price rise?

• Will this ensure lower prices?

• Onion production in India-Know in detail

• When do farmers grow onions?

• Is onion a rabi or kharif crop?

• What government can do in this situation?

Other Important Articles Covering the same topic:

Story continues below this ad

📍Govt imposes 40 per cent export duty on onions: Why are prices rising?

Can’t brush JU under the carpet: Aman Kachroo’s father, key anti-ragging voice

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Key Points to Ponder:

• What’s the ongoing story- As the suicide of a 17-year-old at Jadavpur University (JU) casts a spotlight on ragging and raises questions on the preparedness of higher education institutions to tackle the problem, Rajendra Kachroo, one of the strongest voices in the country against ragging, says the JU incident and other such can’t be “brushed under the carpet” and “you have to speak about it”.

• What is ragging?

Story continues below this ad

• For Your Information-Any conduct by a student or group of students where words spoken, written or an act has the effect of teasing, treating or handling someone with rudeness. A student or group of students indulging in rowdy or indiscipline activities causing annoyance, hardship, physical or psychological harm, raise fear or apprehension to other students. Ragging can be categorised into three broad types. The first comprises the most common practices such as “giving introduction”, addressing seniors as ‘Sir’ or ‘Ma’am’, complying with instructions to sing, dance, or maintain a dress code, not looking directly at seniors, etc. This kind of ragging is either not classed as ragging but as “interaction” or “fun”, or as mild ragging. It appears to involve the introduction and integration of newcomers into the institution and its culture, and the establishing of hierarchies around seniority. The second category is clearly identified as ragging. These are acts like coerced drinking, smoking, approaching the opposite sex, using abusive language, and sexual forms of ragging. The underlying motives seem largely linked to issues of growing up: asserting freedom from childhood restrictions, enacting sexual fantasies that provoke both anxiety and excitement, and living up to gendered expectations, especially about being manly. The third category is of severe ragging. It comprises physical abuse meted out as punishment, physical coercion, and violent assault. It is sometimes intended to prove manly strength, but most often it is to assert dominance by intimidating, humiliating and punishing newcomers into submission.

• But, why ragging is still continuing?

• What the Supreme Court said on ragging?

• Do You Know-The Supreme Court in a 2001 case had dealt with ragging, which it termed the “menace pervading the educational institutions of the country.” Vishwa Jagriti Mission has filed a public interest litigation against the central government. The Court said, “broadly speaking” ragging is defined as: “Any disorderly conduct, whether by words spoken or written or by an act which has the effect of teasing, treating or handling with rudeness any other student, indulging in rowdy or indisciplined activities which causes or is likely to cause annoyance, hardship or psychological harm or to raise fear or apprehension thereof in a fresher or a junior student or asking the students to do any act or perform something which such student will not do in the ordinary course and which has the effect of causing or generating a sense of shame or embarrassment so as to adversely affect the physique or psyche of a fresher or a junior student. The cause of indulging in ragging is deriving sadistic pleasure or showing off power, authority or superiority by the seniors over their juniors or freshers.” The Court also issued key guidelines on anti-ragging. These included setting up proctoral committees to prevent ragging and internally address complaints against ragging. “Ragging if it becomes unmanageable or amounts to a cognizable offence the same may be reported to the police,” the Court had said. In 2009, the Supreme Court in another case again dealt with the ragging issue in which it appointed a committee headed by former CBI Director RK Raghavan. The recommendations of the committee were subsequently formalised by the University Grants Commission (UGC).

• What are the roles and responsibilities of the UGC?

• What are the other anti-ragging measures taken by the Government of India and Various other State government?

• What are the Laws to Prevent Ragging in India?

Other Important Articles Covering the same topic:

📍Jadavpur University student death: What the law says about ragging

📍How to deal with ragging? A guideline on what students, institutions should do

THE EDITORIAL PAGE

How to govern data

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: 

• General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

• General Studies II: Important aspects of governance, transparency and accountability, e-governance applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures.

Key Points to Ponder:

• What’s the ongoing story- Isha Suri, Rajat Kathuria Writes: On August 9, 2023, the Rajya Sabha “unanimously” passed the Digital Personal Data Protection Bill (DPDP), 2023 and drew the curtains on a journey that began roughly a decade ago. In the process, it has predictably provoked mixed reactions. One of the overarching goals of the legislation, by the government’s own admission, is to strike a balance between protecting personal data and enabling the processing of such data for lawful purposes, so as to enable innovation and promote economic growth. In doing so, the government has largely exempted itself from the purview of the law, in letter and spirit.

• The Digital Personal Data Protection Bill, 2023-Key features

• What are the concerns around the draft Bill?

• “The Act declares that for the “security of the state, maintenance of public order or preventing incitement to any cognisable offence relating to any of these, and the processing by the central government of any personal data that such instrumentality may furnish to it”, the state falls outside its scope-Analyse

• “The Act mandates the establishment of an adjudicatory body, Data Protection Board (DPB)”- What will be role and functions of Data Protection Board (DPB)?

• “Though well-intentioned, the Indian approach is likely to encounter a few speed bumps”-What sort of speed bumps author is highlighting here?

• For Your Information-According to authors, for starters, inclusion of vague qualitative parameters such as risk to electoral democracy and public order are likely to make the process imprecise due to the lack of an objective criteria or any tangible metrics for such designation. What’s more, any such determination must rely on market analysis requiring specialised skills and subject matter expertise, which may be beyond the know-how of the government. And by limiting the term of the DPB to two years, with possible extension, in spirit, the members will serve at the privilege of the government creating perverse incentives. The Act also empowers the government to exempt any private entity from additional obligations imposed on SDFs. This leaves room open for arbitrariness and regulatory asymmetry. Another aspect of the law that seems odd is designating the Telecom Dispute Settlement and Appellate Tribunal (TDSAT) as the appellate tribunal of DPB. TDSAT was established with a view to hear appeals against orders of the Telecom Regulatory Authority of India (TRAI). Data is vastly more than just telecom and arguably more complex. Telecom disputes have over time themselves become more intricate and time consuming to resolve. It took a decade, if not more, to establish the jurisdictional boundaries between TRAI and TDSAT because, in part, the system was gamed by vested interests for narrow gains that hurt the sector. It could well be argued that TDSAT was unable to function along Benthamite lines for the welfare of the majority and it is unlikely to do so under the current structure to enable protection of personal data. Repurposing an existing institution to deal with ever more complex questions posed by new and emerging technology is a brave experiment. Data governance is serious business and if the government is serious about it, then it needs to delegate, in letter and spirit.

Other Important Articles Covering the same topic:

📍What data protection Bill says on privacy, Centre’s powers, right to info

Previous year UPSC Mains Question Covering similar theme:

📍Examine the scope of Fundamental Rights in the light of the latest judgement of the Supreme Court on Right to Privacy. (GS2, 2017)

EXPLAINED

The crucial last 15 minutes

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Key Points to Ponder:

• What’s the ongoing story- The critical technical manoeuvre that the Chandrayaan-3 lander will have to perform on August 23 when it enters the final 15 minutes of its attempt to make a soft landing on the Moon will be to transfer its high-speed horizontal position to a vertical one — in order to facilitate a gentle descent on to the surface. These final 15 minutes on Wednesday evening will determine the success of the mission. In July 2019, after the Indian Space Research Organisation (ISRO) aborted the first attempt to launch the Chandrayaan-2 mission, K Sivan, then chairman of India’s space research body, had described this phase as “15 minutes of terror”.

• What is Chandrayaan-3 mission?

• What is the name of Chandrayaan-3 lander Rover?

• Has the Chandrayaan-2 mission encountered failure?

• What was the Chandrayaan-2 mission?

• What went wrong with the Chandrayaan-2’s Vikram lander?

• What was missed because of the crash landing?

• How Chandrayaan-3 mission is different from Chandrayaan-1 and Chandrayaan-2?

• What is Low Earth Orbit (LEO)?

• Do You Know- In the past four years, government and private space agencies from four countries — India, Israel, Japan and now Russia — have tried to land their spacecraft on the Moon, and failed. Each of these missions encountered problems in the very last stage — during the landing process — and crashed on the Moon’s surface. Ahead of the Chandrayaan-2 mission in 2019, the then chairman of Indian Space Research Organisation (ISRO), K Sivan, had referred to the final phase of landing as “15 minutes of terror”. That remark captures the essence of the complexity involved in making a descent from the lunar orbit to the Moon’s surface. Quite clearly, this is the most difficult part of the Moon mission. The exact problem with Luna-25 is not yet known, though the statement from Roscosmos said that the change in momentum that the spacecraft had experienced while moving into the pre-landing orbit was different from what it should have been. In the case of the other three — ISRO’s Chandrayaan-2, Beresheet from Israel, and Hakuto-R from Japan — different kinds of malfunctions resulted in desired levels of speed not being achieved. China has been the sole exception in this, having landed on its very first attempt in 2013 with Chang’e-3. It has repeated the feat with Chang’e-4 in 2019 and Chang’e-5, a sample return mission, in 2020. Among the countries that have tried and failed, India is the only one which is already in the process of making a second attempt. Having learnt from its previous failure, it has incorporated several safety features in Chandrayaan-3, and added layers of redundancy so that if one particular feature develops problems, something else will work. Luna-25 was just the resumption of Russian interest in the Moon. It was named to signify the continuation of the Luna series which the then Soviet Union used to reach the Moon 50 years ago. Luna-24, launched in 1976, was the last spacecraft to land on the Moon’s surface, before lunar missions came to an abrupt halt and remained suspended for almost two decades. Russia has already announced that there are more lunar missions to follow Luna-25. At least three more in the Luna series are planned in this decade.

Other Important Articles Covering the same topic:

📍New in Chandrayaan-3: key upgrades that bring hope and confidence

📍‘Moon within reach’: Chandrayaan-3 lander completes final deboosting op; descent expected to begin on August 23

Previous year UPSC Mains Question Covering similar theme:

📍India has achieved remarkable successes in unmanned space missions including the Chandrayaan and Mars Orbiter Mission, but has not ventured into manned space missions, both in terms of technology and logistics? Explain critically (UPSC GS3, 2017)
📍Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology has helped India in its socio-economic development? (UPSC GS3, 2016)

ECONOMY

Sharp rise in remittances for equity purchases, gifts under LRS in June

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Key Points to Ponder:

• What’s the ongoing story- Ahead of the deadline for the TCS (tax collected at source) which was supposed to come into effect from July this year, remittances by resident Indians to other countries jumped 35 per cent on a month-on-month basis in June 2023 and 96 per cent when compared to June 2022. According to Reserve Bank of India (RBI) data, fund outflow under the RBI’s Liberalised Remittances Scheme (LRS) shot up to $3.89 billion (Rs 32,000 crore) in June as against $ 2.88 billion (Rs 23,900 crore) in May this year. LRS outflows in June 2022 were just $ 1.98 billion (Rs 16,430 crore).

• What is the Liberalised Remittance Scheme (LRS)?

• What do you understand by ‘Tax Collected at Source’?

• Do You Know-There was a significant rise in LRS outflows under the categories of equity/ debt investment, purchase of immovable property, overseas deposits and maintenance of relatives abroad. The government had since then postponed the implementation of TCS on remittances to October 1, 2023. Under LRS, all resident individuals, including minors, can remit up to US $250,000 (approximately Rs 2.07 lakh crore) abroad per year without prior approval from the RBI. While the total remittances under the LRS in the last five years were $ 91.98 billion (Rs 763,400 crore), the average outflow under LRS in FY2022-23 was $ 2.261 billion every month, aggregating $ 27.14 billion (Rs 225,200 crore) for the full year. Cumulatively, for the April-June quarter this year, outward remittances rose to $9.1 billion, which is one-third of the total remittances in FY23. The reason for the rise in outflows was because people seem to have remitted money abroad to avoid TCS payment from July 1, according to bankers. Remittances to purchase immovable property abroad rose by 116 per cent to $45.85 million in June this year as against $21.22 million in the previous month, according to RBI data. LRS outflow for purchase of equity and debt abroad shot up by 194.66 per cent to $ 314.73 million in June from $ 106.81 million in May. Equity investment spurted by 384 per cent from just $65 million in June 2022. According to RBI data, remittances for maintenance of relatives rose by 81.54 per cent to $890.89 million in June 2023 from $ 490.73 million in the previous month and $304.85 million in June 2022. Remittances as gift also jumped by 64.81 per cent to $ 890.89 million June from $ 390.72 million in the previous month. However, travel remittances were marginally lower at $1.482 billion in June from $1.495 billion in the previous month. The Budget 2023-24 had proposed hiking the TCS rate to 20 per cent from 5 per cent above Rs 7 lakh threshold for all purposes other than education and medical treatment. Also, for overseas tour packages, the government had proposed hiking the TCS rate to 20 per cent from 5 per cent, without any threshold, with effect from July 1. On May 16, the Centre amended rules under the Foreign Exchange Management Act (FEMA), bringing international credit card spends under the LRS. As a consequence, spending on international credit cards would have then attracted a higher rate of TCS at 20 per cent from July 1. However, on May 19, the government clarified that any payments by an individual using their international debit or credit cards up to Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. The government then postponed the implementation to October 1, 2023.

• What is Foreign Exchange Management Act?

• What is outward and inward remittance?

• What is the Tax Collected at Source charge for outward remittances?

• What is outward remittance from India?

• Is inward remittance taxable in India?

Other Important Articles Covering the same topic:

📍Credit card spend in forex to come under LRS, and taxed 20%aldermen, says SC

For any queries and feedback, contact priya.shukla@indianexpress.com
The 
Indian Express UPSC Hub is now on Telegram. Click here to join our channel and stay updated with the latest Updates.

Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.

Priya Kumari Shukla is a Senior Copy Editor in the Indian Express (digital). She contributes to the UPSC Section of Indian Express (digital) and started niche initiatives such as UPSC Key, UPSC Ethics Simplified, and The 360° UPSC Debate. The UPSC Key aims to assist students and aspirants in their preparation for the Civil Services and other competitive examinations. It provides valuable guidance on effective strategies for reading and comprehending newspaper content. The 360° UPSC Debate tackles a topic from all perspectives after sorting through various publications. The chosen framework for the discussion is structured in a manner that encompasses both the arguments in favour and against the topic, ensuring comprehensive coverage of many perspectives. Prior to her involvement with the Indian Express, she had affiliations with a non-governmental organisation (NGO) as well as several coaching and edutech enterprises. In her prior professional experience, she was responsible for creating and refining material in various domains, including article composition and voiceover video production. She has written in-house books on many subjects, including modern India, ancient Indian history, internal security, international relations, and the Indian economy. She has more than eight years of expertise in the field of content writing. Priya holds a Master's degree in Electronic Science from the University of Pune as well as an Executive Programme in Public Policy and Management (EPPPM) from the esteemed Indian Institute of Management Calcutta, widely recognised as one of the most prestigious business schools in India. She is also an alumni of Jamia Milia Islamia University Residential Coaching Academy (RCA). Priya has made diligent efforts to engage in research endeavours, acquiring the necessary skills to effectively examine and synthesise facts and empirical evidence prior to presenting their perspective. Priya demonstrates a strong passion for reading, particularly in the genres of classical Hindi, English, Maithili, and Marathi novels and novellas. Additionally, she possessed the distinction of being a cricket player at the national level.   Qualification, Degrees / other achievements: Master's degree in Electronic Science from University of Pune and Executive Programme in Public Policy and Management (EPPPM) from Indian Institute of Management Calcutta   ... Read More

Latest Comment
Post Comment
Read Comments
Advertisement

UPSC Magazine

UPSC Magazine

Read UPSC Magazine

Read UPSC Magazine
Advertisement
Advertisement
Advertisement