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Explained
UPSC Syllabus:
Preliminary Examination: Economy
Mains Examination: GS-III: Economy
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What’s the ongoing story- The latest official Survey on Household Consumption Expenditure for 2022-23 (August-July) shows that the average monthly per capita spending in rural India on vegetables (at Rs 202.86), fresh and dry fruits (Rs 140.16) and pulses (Rs 75.98) was lower than on milk and milk products (Rs 314.22).
Prerequisites:
— What is the Household Consumption Expenditure Survey (HCES)?
— What is the per capita expenditure?
— What is veganism?
— What is lacto-vegetarian?
Key takeaways:
— The value of per capita consumption was similarly higher for milk (Rs 466.01) than vegetables (Rs 245.37), fruits (Rs 245.73) and pulses (Rs 89.99) even in urban India.
— No less revealing is the per capita expenditure on dal, sabzi and phal in “vegetarian” Rajasthan being below the national average (both rural and urban) for these items.
— Or, for that matter, the value of vegetable consumption by the average person in the eight Northeast Indian states being higher than not just the corresponding all-India level, but even of “Vaishnav-Jain” Gujarat.
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— Simply put, being vegetarian in India is not being vegan. Indians, if at all, are lacto-vegetarian. Even those who call themselves vegetarian generally don’t abstain from consuming milk and dairy products.
— Mahatma Gandhi made a distinction between “vegetarian” and “flesh” foods. The latter included fowl and fish. Milk, for him, was an “animal food”, like “sterile eggs” that are laid by hens (without being “allowed to see the cock”) and do not develop into chicks.
— Animal products, including milk, are rich sources of protein. These contain a balanced combination of all essential amino acids that the human body cannot synthesise and have to, therefore, be supplied through one’s diet. Plant proteins, by contrast, are incomplete. Even soyabean, pulses and legumes are deficient in the essential amino acids, methionine and cysteine.
— The accompanying tables show that the states where the average household monthly per capita expenditure on milk and dairy products is higher than on egg, fish and meat – in other words, “vegetarian” – are primarily in North, West and Central India.
For Your Information:
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— The factsheet of the HCES survey report released earlier in February had shown that rural average monthly consumption spending per person increased to Rs 3,773 per month in 2022-23 from Rs 1,430 per person in 2011-12, a jump of 164 percent.
— This is higher than the 146 percent increase in urban average monthly consumption expenditure per person to Rs 6,459 in 2022-23 compared with Rs 2,630 per person in 2011-12.
Points to Ponder:
— Why is it important to understand the household expenditure for the policymakers?
— What is the impact of inflation on the Household consumption expenditure?
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— What are the implications of the survey’s findings on inflation?
Post Read Question:
Consider the following statements:
1. The Household Consumption Expenditure Survey (HCES) is usually conducted by the National Statistical Office (NSO) every five years.
2. The findings of the last Survey, conducted in 2017-18, revealed that the Monthly per capita consumption expenditure (MPCE) in Indian households rose by 33.5%.
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
Other Important Articles Covering the same topic:
Consumption expenditure survey 2022-23
With new consumption survey, the need for new indices
UPSC Syllabus:
Preliminary Examination: Indian Polity
Mains Examination: GS-II: Indian Polity
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What’s the ongoing story- President Droupadi Murmu has rejected a mercy petition filed by Pakistani national Mohammed Arif who was sentenced to death for the December 22, 2000 terrorist attack at the Red Fort in which three people including two Army jawans were killed.
Prerequisites:
— What are the constitutional provisions related to the pardoning power of the President?
— What is mercy petition?
— What is a curative petition?
— What is a writ petition?
Key takeaways:
— In 1980, the Supreme Court (Bachan Singh v. State of Punjab) upheld the constitutionality of the death penalty, but established important guardrails. “Judges”, the court said, “should never be bloodthirsty”, and the death penalty should not be awarded “save in the rarest of rare cases when the alternative option is unquestionably foreclosed”, and all possible mitigating circumstances have been considered.
— The Report of the 262nd Law Commission published in 2015 recommended the “absolute abolition” of the death penalty “for all crimes other than terrorism related offences and waging war”.
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— At a procedural level, the apex court has held that the President’s power must be exercised based on the aid and advice of the Council of Ministers, and can be challenged on multiple grounds.
— The top court has also commuted the death sentence in cases of inordinate delay in deciding mercy petitions.
For Your Information:
— Under Article 72 of the Constitution, “the President shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence where the sentence is a sentence of death”. Similarly, Article 161 confers pardoning powers on the governor, but these do not extend to death sentences.
Points to Ponder:
— Understand these constitutional terms related to the President’s pardoning power: Pardon, Commutation, Remission, Respite, and Reprive.
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— What is the Supreme Court’s observation on the delay in the decision of the mercy petition?
— What is the Appellate Jurisdiction power of the Supreme Court?
— What is the difference between the pardoning power of the President and the Governor?
Post Read Question:
Prelims
Consider the following statements:
1. The pardoning power of the President enshrined in Article 72 is an Executive power.
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2. The remission power of the President denotes the substitution of one form of punishment for a lighter form.
3. The respite power of the President denotes awarding a lesser sentence in place of one originally awarded due to some special fact.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Mains
Instances of President’s delay in commuting death sentences has come under public debate as denial of justice. Should there be a time limit specified for the President to accept/reject such petitions? Analyse. (UPSC CSE 2014)
Other Important Articles Covering the same topic:
Mercy petitions: How changes proposed in the BNSS ignore legal precedents
Editorial
UPSC Syllabus:
Preliminary Examination: Current events of national and international importance
Mains Examination: GS-I, II, III: Human geography, Government policies, International Relations
What’s the ongoing story- S Irudaya Rajan and Varsha Joshi write: The morning of June 13, 2024 marred by terrible news for all Indians but especially for the families of over 40 Indian migrant workers in Kuwait. The country woke up to the news of their deaths in a fire in the six-storey building where they lived. As of now, a total of 49 deaths have been reported and at least 50 people have been injured. Among the deceased, 42 were reportedly Indians and 24 of them were from Kerala.
Prerequisites:
— Who are migrants?
— What is the Kafala system?
— Which are the member countries of the Gulf Cooperation Council (GCC)?
— What are the working conditions of people migrating to GGC countries?
Key takeaways:
— This incident has once again brought attention to the lack of safety and deplorable living conditions of migrants in destination countries. Sadly, this is not an isolated event.
— Two years ago, during the football World Cup in Qatar, there were several news reports about rising migrant deaths, harsh working conditions and severe violations of human rights.
— These crises are a result of a chronic indifference towards addressing migrant rights, safety and working conditions in destination countries. The repetition of the incidents also suggests that we have not learned the lessons we should have: Migrant issues are only in momentary focus and are topics of debate as long as there is an alarming situation.
— But considering the strength of the Indian diaspora around the world, especially the migration corridor India shares with West Asia, we need well-thought-out, effective policies to ensure the safety and well-being of migrants from India.
— The Kerala Migration Survey (KMS) 2023 estimates that 2.2 million people from the state have migrated, with 80 per cent of them residing in the Gulf Cooperation Council (GCC) countries.
— The majority of these migrants work in the unorganised sector… Additionally, since migrants in Gulf countries do not have the option of permanent residency, they are not adequately protected and have few rights, which can lead to exploitative labour conditions similar to those observed in Qatar in the run-up to the World Cup.
— One of the major challenges in addressing these issues is the lack of data on migrants — both at their origin and destination countries.
— The lack of clarity and uniformity in data available from different agencies was indicative of the grave invisibilisation of the migrants, especially those employed in the low-skill, low-paying job profiles.
— A national-level migration database is a necessary step forward to adequately understand the various sections of migrants from India and also the increasing trend of return migration, as observed in the latest KMS figures.
— New Delhi has signed a Memoranda of Understanding with almost all of the Gulf Cooperation Council (GCC) countries on mobility and migration. Yet, India has not yet been fully successful in tapping the potential of being one of the strongest migrant-sending countries to ensure the well-being of its people in the destination country.
For Your Information:
— According to the Ministry of External Affairs data, nearly 8.8 million Indians live and work in the Gulf. The money they send back home makes for more than a fourth of the diaspora’s annual remittances.
— Many are recruited through the visa sponsorship, or kafala system, which binds workers to their employers, severely limiting the capacity of the migrants to seek better housing or occupational safety improvements. Fear of loss of employment or deportment prevents most from complaining about the quality of working or living conditions.
— The problem also is that India deals with migration through a 40-year-old Emigration Act, which leaves the migrant worker at risk.
Points to Ponder:
— Why do Indians migrate to Gulf countries?
— What are the challenges faced by Indian migrants?
— What are international guidelines on the working conditions of migrants?
(Thought Process: Read about the International Labour Organisation (ILO) response to the working condition in Arab countries)
— What are the steps taken by India to ensure good working conditions and protection of Indian migrant workers?
Post Read Question:
Prelims
The 189th International Labour Organisation (ILO) Convention is related with
(a) decent work for domestic workers
(b) transportation of industrial waste to developing countries
(c) maternity protection and childcare
(d) the insurance for workers in the micro and small industries
Mains
Discuss the changes in the trends of labour migration within and outside India in the last four decades. (UPSC CSE 2015)
Other Important Articles Covering the same topic:
Death of workers in Kuwait underlines vulnerability of Indian migrants
UPSC Syllabus:
Preliminary Examination: Economy
Mains Examination: GS-III: Economy
What’s the ongoing story- As the US heads for a presidential election in November, the Federal Reserve, the country’s central bank, has signaled that it is unwilling to let interest rates soften in a hurry.
Prerequisites:
— What is the interest rate hike?
— What is the repo rate?
— What is a bond yield?
Key takeaways:
— Given that the US is the world’s largest economy and the US dollar is the most important global currency, actions of the “Fed” (as the Federal Reserve is called) are keenly watched by policymakers across the world, especially among emerging economies like India. That’s because higher interest rates in the US strengthen the dollar vis a vis other currencies, and this, in turn, incentivises investors to pull their money out of emerging economies and take it back to the US.
— Unlike India, where the RBI directly tweaks the repo rate (or the interest rate at which it lends to the banking system), in the US the Fed “targets” the so-called Federal Funds Rate. The FFR is the interest rate at which commercial banks borrow from each other. But the Fed can make this rate go up or down by tweaking the overall supply of money.
— Again, unlike India, where the RBI targets 4 per cent inflation, the Fed targets 2 per cent. In many ways, the Fed’s action is similar to the RBI’s hawkish stance. Just like the RBI, the Fed also wants to make sure that it does not reverse its policy restraint too soon lest it leads to a spike in inflation.
For Your Information:
— Like other central banks such as the RBI, as the US Fed conducts monetary policy, it influences employment and inflation primarily by using policy tools to control the availability and cost of credit in the economy. The Fed’s primary tool of monetary policy is the federal funds rate, changes in which influence other interest rates — which in turn influence borrowing costs for households and businesses, as well as broader financial conditions.
— Theoretically, a signal to cut policy rates in the US should be a positive for emerging market economies, especially from a debt market perspective. Emerging economies such as India tend to have higher inflation and, therefore, higher interest rates than in developed countries.
— As a result, investors, including Foreign Portfolio Investors, tend to borrow in the US at lower interest rates in dollar terms, and invest that money in the bonds of countries such as India in rupee terms to earn a higher rate of interest.
Points to Ponder:
— What is the Impact of the Fed’s Policy on the Indian Market?
— How is inflation controlled in India?
— How can India reduce the impact of the Fed’s policy?
Post Read Question:
Consider the following statements: (UPSC CSE 2022)
1. Tight monetary policy of the US Federal Reserve could lead to capital flight.
2. Capital flight may increase cost of firms with existing External Commercial Borrowings (ECBs).
3. Devaluation of domestic currency decreases the currency risk associated with ECBs
Which of the statements given above are correct?
(a) 1, 2 and 3
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Other Important Articles Covering the same topic:
US Fed will keep rates steady amid high inflation: Why this matters for the global economy
UPSC Syllabus:
Preliminary Examination: Indian polity and Governance- Constitution, Political System.
Mains Examination: GS-II: Governance, Constitution, Polity, Salient features of the Representation of People’s Act.
What’s the ongoing story- Vandinika Shukla writes: Despite widespread fears of an election cycle riddled with AI-generated dis/misinformation campaigns, the deepfake apocalypse did not come to India.
Prerequisites:
— What is deep fake?
Key takeaways:
— “Hyper-realistic AI-generated content in India was designed to appeal to emotions. Translated to regional languages, particularly to make parties accessible beyond the Hindi heartland, it leveraged relational bonds, especially with the resurrection of superstar politicians.”
— “Political parties also used AI to bolster their ongoing meme wars, with cheap fakes, propaganda images, and AI parody videos”
— Yet, the rural information ecosystem was not as sophisticated. The fact-checking unit Logically Facts reported that of their 224 fact-checks between February and June 2024, merely four per cent covered AI-generated content.
— “India’s experiment with AI can also open a new chapter for AI in participatory democracy. Consensual uses of AI in the context of renewed competition in the Lok Sabha can have a positive role in making democracy and governance more accessible, deliberative and representative.”
— “The Indian voters — across regions, religions, castes and class — have made it clear that they care less about polarising rhetoric or entertaining but empty promises. Instead, they want their representatives to respond to issues of local importance — agrarian distress, water scarcity, unemployment, hunger, and education.”
— “AI and the future of participative democracy could make constituent communication a dialogue so voters can share their demands and lived experiences directly with their representatives, at speed and scale.”
— “Safe and ethical AI could be good for democracy and help our Parliament and elected officials to respond to grassroots needs and livelihoods.”
For Your Information:
— The research, ‘An AI experiment on Augmented Democracy for India’, conducted by the new-age think tank, Policy 4.0 brings forth an array of possibilities with AI. The research shows how AI could prove to be a great means to help voters make informed decisions. The new research not only explores the power of AI in encouraging data-driven voting behaviour but also sees it as a way to mitigate political polarisation.
Points to Ponder:
— What is the role of AI in participatory democracy?
— What are the concerns deploying AI in the electoral process?
— What initiatives have been taken by the government to integrate AI into governance?
Post Read Question:
With the present state of development, Artificial Intelligence can effectively do which of the following? (UPSC CSE 2020)
1. Bring down electricity consumption in industrial units
2. Create meaningful short stories and songs
3. Disease diagnosis
4. Text-to-Speech Conversion
5. Wireless transmission of electrical energy
Select the correct answer using the code given below:
(a) 1, 2, 3 and 5 only
(b) 1, 3 and 4 only
(c) 2, 4 and 5 only
(d) 1, 2, 3, 4 and 5
Other Important Articles Covering the same topic:
AI can enable voters to make informed decisions, mitigate polarisation during elections: Study
The Ideas Page
UPSC Syllabus:
Preliminary Examination: Government policies
Mains Examination: GS-II: Government policies and interventions
What’s the ongoing story- Sumeet Kachwaha writes: On June 3, the Finance Ministry announced a surprising policy decision. After trying to promote India as a hub for arbitration for decades, the Government of India now feels that arbitrations do not work for them and that the arbitration clause should be dropped from all future government/government-controlled entities’ contracts (except in relation to minor disputes of a value of Rs 10 crore or less).
Prerequisites:
— What is arbitration?
— What is alternative dispute resolution (ADR)?
— What are the laws related to arbitration in India?
Key takeaways:
— “The core reason given for this dramatic shift in policy is the government’s perception that arbitrators often lack integrity and collude with private parties and the resultant award becomes difficult to dislodge (given the limited grounds available in law to challenge an arbitral award on merits).”
— “The government’s change of stance in abandoning arbitration and pitching all its hope in its ability to settle disputes “without shirking or avoiding responsibility or denying genuine claims” is fundamentally flawed and rests on misplaced wishful thinking.”
— “It will also prove to be a costly mistake and a major impediment in bridging the infrastructural gap, rendering projects bankable and achieving the five trillion-dollar economy aspiration.”
—” …If there is no settlement, the aggrieved party is left to the mercy of the courts. There can be no two opinions that the courts are not equipped to handle heavy commercial disputes in any sensible way. The courts are so overworked that they are barely able to deal with the award challenge proceedings (where the scope of judicial review is minimal).”
— “The 2015 Amendment to the Arbitration Act, prescribes that award challenges shall be disposed off expeditiously “and in any event” within one year. The reality is that these challenges linger for around five years or so in the court of first instance alone.”
— “Arbitrations may not be perfect, but they are clearly more workable than court litigation. To ask the private party to take its dispute to court is to turn a blind eye to reality and throw the litigant under the bus. Effective dispute resolution methods are a necessary adjunct to economic growth.”
For Your Information:
— Arbitrations are governed under the Arbitration and Conciliation Act, 1996 which was enacted as a solution for moving commercial litigation away from overburdened courts.
Points to Ponder:
— What is the significance of effective dispute resolution in the economic development of a nation?
— What are the recent amendments to the Arbitration and Conciliation Act of 1996?
— What are the advantages and disadvantages of arbitration as a route for ADR?
Post Read Question:
What are the major changes brought in the Arbitration and Conciliation Act, 1996 through the recent Ordinance promulgated by the President? How far will it improve India’s dispute resolution mechanism? Discuss. (UPSC CSE 2015)
Other Important Articles Covering the same topic:
Finance to states, depts: Use arbitration only in disputes under Rs 10 crore
Indian judiciary has shifted to facilitating arbitration: CJI in UK
Express Network
UPSC Syllabus:
Preliminary Examination: Indian and World Geography – Physical, Social, and Economic Geography of India and the World
Mains Examination: GS-I, III: Important Geophysical phenomena, Environment
What’s the ongoing story- At least six people were killed, five are missing and 1,500-odd tourists stranded as massive landslides triggered by incessant rainfall caused devastation in northern Sikkim’s Mangan district, officials said on Thursday.
Prerequisites:
— What is landslides?
— What are the causes of landslides?
Key takeaways:
— According to the IMD, widespread, moderate rainfall, accompanied by thunderstorms, lightning, and gusty winds, is likely over Sub-Himalayan West Bengal during the next seven days. Heavy to very heavy rains are also forecast over the region in the next five days.
For Your Information:
— About 0.42 million square km of India’s landmass, or about 13% of its area, spread over 15 states and four Union Territories, is prone to landslides, according to the Geological Survey of India (GSI).
— This covers almost all the hilly regions in the country. About 0.18 million square km, or 42% of this vulnerable area is in the Northeastern region, where the terrain is mostly hilly.
— Excessive or continuous rainfall over a period of days, or during particular seasons, can lead to stagnation of water and cause flooding. Flash floods refer to such a situation, but occurring in a much shorter span of time, and are highly localised.
— The risk from landslides has been exacerbated by the failure to remain mindful of the terrain’s ability to withstand the load. Many hilly areas do not have building regulations. Often, regulations are not implemented effectively. New constructions, infrastructure development, and even agricultural practices can increase the risk of landslides.
Points to Ponder:
— What is India’s disaster preparedness against landslides?
— How far anthropogenic activities are responsible for landslides?
Post Read Question:
The Himalayas are highly prone to landslides.” Discuss the causes and suggest suitable measures of mitigation. (UPSC CSE 2016)
Other Important Articles Covering the same topic:
Building resilience against landslides
Explained: The danger from landslides, with several dead in Northeast India after cyclone Remal
Economy
UPSC Syllabus:
Preliminary Examination: Economy
Mains Examination: GS-III: Economy
What’s the ongoing story- Mumbai and Delhi were among the top five global cities that recorded an increase in their average annual house prices while Bengaluru witnessed a slight drop in prime residential or luxury homes in the January-March quarter of calendar year 2024, says a study.
Prerequisites:
— What is real estate?
Key takeaways:
— Mumbai, with a rise of 11.5 per cent in the index, recorded the third highest year-on-year (YoY) growth in prime residential prices in the January-March quarter among global cities, pushing it up the ranking table by 3 places to the third position from its sixth position in January-March 2023, Knight Frank said in its recent report ‘Prime Global Cities Index January-March 2024’.
— National Capital Region of Delhi which witnessed a rise of 10.5 per cent in house prices during the quarter was at the fifth position. NCR rose from 17th rank in Jan-March 2023 to fifth in Jan-March 2024 with a growth of 10.5 per cent YoY. However, Bengaluru observed a decline in ranking from 16th place to 17th rank even while it recorded a 4.8 per cent YoY growth in residential prices.
— Manila was at the top with a rise of 26.2 per cent and Tokyo came second with a rise of 12.5 per cent.
— New Delhi and Mumbai have witnessed a surge in house prices driven by robust economic growth, as indicated by our findings, with annual GDP growth exceeding 8 per cent, Knight Frank said.
— The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency, the study said.
Points to Ponder:
— What is the reason for the significant rise in house prices?
— What is its significance for policymakers?
— Know about significant indexes and report
Post Read Question:
Which one of the following issues the ‘Global Economic Prospects’ report periodically? (UPSC CSE 2015)
(a) The Asian Development Bank
(b) The European Bank for Reconstruction and Development
(c) The US Federal Reserve Bank
(d) The World Bank
Other Important Articles Covering the same topic:
UPSC Prelims 2024 Special: Revision Checklist for important Reports and Indexes
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