1.

Indian economy, inclusive growth and Budgeting

Key pointers

1. Behavioural changes
1. SBM — More than five lakh swachhagrahis, foot soldiers of the
SBM, were recruited to reinforce the message of toilet usage.
2. Beti Bachao Beti Padhao —The campaign was flagged from
Panipat, Haryana, which had the worst child sex ratio at 834
among other Indian states.
3. Swachh Bharat to Sundar Bharat.
4. From “Give It Up” for the LPG subsidy to “Think about the
Subsidy”.
2. The principle is that most data are generated by the people, of the
people and should be used for the people. Enabling the sharing of
information across datasets would improve the delivery of social
welfare, empower people to make better decisions, and democratise an
important public good.
3. Data collection is highly decentralised as different ministries collect this
data separately. Therefore, each ministry only has a small piece of the
jigsaw puzzle that is the individual/firm.
4. Samagra Vedika Initiative of Telengana links around 25 existing
government datasets using a common identifier – the name and address
of an individual.
5. India will have to shed its service led structure and transform into an
innovation driven economy and focus on becoming a creator rather than
an adopter.
6. The circular economy is a model of production and consumption, which
involves sharing, leasing, reusing, repairing, refurbishing and recycling
existing materialsand products as long as possible. In this way, the life
cycle of products is extended.

Basel norms

1. Basel guidelines refer to broad supervisory standards formulated by

group of central banks to reduce risks to banks and the financial system.
The purpose of the accord is to ensure that financial institutions have
 enough capital on account to meet obligations and absorb unexpected
losses. India has accepted Basel accords for the banking system.
2. The committee’s decisions have no legal force. The committee
encourages convergence towards common standards and monitors their
implementation, but without attempting detailed harmonisation of
member countries supervisory approaches.
3. Why international cooperation is needed
1. It is because these banks lend not only to its country men but also
to other nations. Also, private investors and sovereign nations take
loans from banks across other nations.
2. Further, the financial system of the world is so interconnected that
one incident of a banking collapse has its repercussions all over
the world. There can be no better example that the 2008 global
recession.
4. Why uniform standards are required
1. It is important for investors and agencies to measure the stability
of the banking system. If all the nations adopt different standards,
then calculating stability figures will be a difficult.
2. Also, suppose some nations run banks on better standards i.e.
better risk management, better returns, lower exposure to volatile
markets etc., then they have a better chance of getting foreign
investment.
5. Challenges in implementation of Basel
1. Higher capital: The private banks have the autonomy to raise
capital from the markets. But the Public sector banks have to rely
on the government mostly. The government has recently decided
to infuse 12000 Cr rupees in the PSBs. In the coming years even
more will be required.
2. More technology: Implementing the norms would require much
more sophisticated technology and management styles that the
Indian banks are presently using. Upgrading both will impose
huge cost on the banks and hurt their profitability in the coming
years.
3. Liquidity crunch: Banks would need to invest more on liquid
assets. These assets do not give handsome returns usually which
would reduce the bank’s operating profit margin. Further higher
deployment of more funds in liquid assets may crowd out good
 private sector investments and also affect economic growth.
4. NPAs: Banks are already suffering from lack of returns on NPA
assets. This will impose even more burden.
6. The way ahead for the banks
1. Change in business: Banks will need to lend more to profitable
yet safe sectors. Ex: Corporate loans. But even corporate loans in
India have been under a lot of stress. Banks are facing increasing
NPAs. Still they are safer and more profitable than retail loans.
2. Low cost funding: Banks need to focus on having a stable low
cost deposit base. For this, banks need to focus more on having
business correspondents to reach customers as adding branches
will increase costs and have an impact on the profit margin. The
RBI is thinking of introducing UID based mobile wallets to
increase the reach of the financial system.
3. Improvement in systems: Refining the systems and procedures
may help banks economise their risk-weighted assets, which will
help reduce capital requirements to some extent. It is possible that
they would impose cost in the short-run, but they would yield
great returns in the future.
4. Operational complexities: They must anticipate changes in the
Indian economic system and react accordingly. Indian banking
regulations are one of the most stringent and consequently one of
the safest in the world.

Non Performing Assets (NPA)

1. A loan asset becomes a Non Performing Asset (NPA) when it ceases to

generate income, i.e. interest, fees, commission or any other dues for
the bank for more than 90 days. Gross NPA ratio declined to 9.3 percent
as on March 2019 against the peak of 11.5 percent recorded in March
2018.
2. Why PSBs are more affected than private banks
1. The burden of stalled infrastructure projects is largely borne by
PSBs.
2. Government interference in the appointment of top executives
affect sanctioning and disbursal of loans, leading to crony
capitalism and loan waivers.
 3. The huge amount of loan granted under poverty alleviation
schemes was totally done by PSBs which is vulnerable to non
payments.
4. PSBs reflect poor level of debt recovery, patronage to wilful
defaulters, whereas private banks concentrate more on less risky
lending.
3. Causes
1. Economic slowdown has resulted in various stalled projects in
mining, manufacturing, etc. Coupled with this, cancellation of 2G
spectrum licenses has resulted in slow down in telecom.
2. Credit prioritisation is not done by the PSBs. Delay in loan
disbursement by banks leads to project off track and effect on its
capacity to repay.
3. Priority sector lending (PSL) by commercial banks to MSME,
farmers is the major cause of loan defaults. Education loan
contributed 20 percent to total NPAs.
4. Populist promises by government during election time like
waiving off farm loans.
5. Corporate debtors using political pressure to get banks to waive
their debts. Wilful defaulters and lack of integration in banking
sector database to nail those wilful defaulters.
6. PJ Nayak committee emphasised that problem at PSBs was
fundamentally one of governance. There is politicisation of
appointment process which has led to growth of wilful defaulters.
4. Impact on banks
1. It hurts banks profitability and delays further lending.
2. It also hurts liquidity of banks as money gets blocked without
return.
3. Involvement of management’s time and efforts of banks
increasing of loan recovery process.
4. Loss of public confidence and market for credit will reduce.
5. Government methods
1. 4R strategy: Government's 4Rs strategy of recognition,
resolution, recapitalisation and reform. Bad loans reduces by
Rs.89,000 crore.
2. Recapitalisation: Has announced a recapitalisation package (of
 Rs. 70,000 crore for PSBs). Government has announced to bring
down its stake in some PSBs to 51% for generating necessary
capital. But this is far from sufficient.
3. Bankruptcy code: When passed, will supplement RBI’s efforts
by speeding legal solutions.
4. Bank Boards Bureau (BBB): This will help in identifying and
appointing MDs and other senior executives of banks.
5. Split CMD post for PSBs: For better allocation of tasks and
management. Now, chairman will be the custodian of governance
and MD will be the custodian of assets and efficiency.
6. De-stressing: To destress banks by strengthening asset
reconstruction companies. 100% FDI in ARC will encourage
foreign entities, thus address the capital problem of ARCs.
7. Empowerment: Giving autonomy to banks in decision making
with out govt interference and more flexibility in hiring.
8. Accountability: To boost efficiency of banks, they will be
assessed by qualitative (human resource) and quantitative
parameters (NPA).
9. Governance reforms: Gyaan sangam where Government and
bank officials meet to resolve banking issues and frame future
policies.
6. RBI measures
1. Asset restructuring companies (ARC). Many ARCs have been
created, but they have solved only a small portion of the problem,
buying up only about 5 percent of total NPAs.
2. Scheme for Sustainable Structuring of Stressed Assets (S4A)
under which banks can split the overall loans of struggling
companies into sustainable and unsustainable based on the cash
flows of the projects. The unsustainable debt could be converted
into equity.
3. Strategic Debt Restructuring (SDR) in which consortium of
lenders converts a part of their loan in an ailing company into
equity, with the consortium owning at least 51 percent stake.
4. Corporate Debt Restructuring (CDR) mechanism and Joint
Lenders Forum.
5. 5:25 scheme to allow banks to extend long term loans of 20-25
years to match the cash flow of projects while refinancing them
 every 5-7 years.
7. Issues with above schemes
1. The Asset Quality Review (AQR) was meant to force banks to
recognise the true state of their balance sheets but banks keep on
ever greening loan.
2. Large debtors have many creditors, who need to agree on a
strategy. This is often difficult when major sums are involved.
3. Public sector bankers are even more cautious in granting debt
reductions in major cases, as this may attract the attention of not
only the investigative agencies, but also the wider public.
4. PSBs are reluctant to grant write downs under S4A, because there
are no rewards and also could quickly deplete banks capital
cushions.
5. The new bankruptcy system is not yet fully in place, and even
when it is, the new procedures (and participants) will need to be
tested first on smaller cases.
8. Measures to reduce NPAs
1. Proper evaluation of credit proposals prior to lending. An
effective bank management committee (BMC) should be set up to
determine the feasibility of lending such loans.
2. PSBs and other banks need to monitor the loans advanced to
check whether they are spent in the proposed project. In case of
priority sector lending (PSL), banks have to constantly monitor
the borrowers whether they are using it for stated purposes.
3. Government should reduce the political clout in banking
decisions. Banks should be left to function professionally in
appointment process of bank directors, management decisions,
etc.
4. The government must infuse more capital into the better-
performing PSBs.
5. RBI should caution the state Governments against loan waivers.
6. Parliament must create an apex Bad bank for tackling bad loans at
PSBs. This would vet restructuring of the bigger loans at PSBs
and mitigate policy paralysis.
7. Banks ought to take a haircut on existing debt to make the
restructured project attractive for SDR, S4A, ARCs, NIIF to
work.
 8. Banks should learn from private sector experiences in dealing
such cases. It is also crucial for the government to give a serious
thought to privatisation of Government banks. So far, this
government has shown an aversion to the privatisation of banks.
9. PARA or Bad bank
1. Bad Bank would be set up as a separate entity that would buy the
NPAs from other banks to free up their books for fresh lending.
The concept has been successfully implemented in many western
European countries post the 2007 financial crisis like Ireland,
Sweden, France etc.
2. It could solve the coordination problem, since debts would be
centralised in one agency.
3. It would separate the loan resolution process from concerns about
bank capital. Bad Bank would essentially help in clearing the
books of banks and this could make the banks more attractive to
buyers.
4. The segregation would help in managing NPAs more effectively.
The organisational requirements and skill sets are very different in
a restructuring and winding up situation than in a lending
situation.
5. It could be set up with proper incentives by giving it an explicit
mandate to maximise recoveries within a defined time period.
6. Raghuram Rajan was of the view that this concept may not be
relevant for India since much of the assets backing the banks loans
are viable or can be made viable. Ex: A large chunk of projects
stalled due to extraneous factors like problems in land acquisition
or environmental clearance.
7. There are issues with respect to composition and management of
the Bad Bank. A majority stakes with government would render
the Bad Bank with the same issues of governance and
capitalisation as PSBs.
8. If loans are transferred at inflated prices, banks would be
transferring losses to the Rehabilitation Agency. As a result,
private sector banks could not be allowed to participate.
10. The RBI has issued guidelines for quicker recognition and resolution of
stressed assets. It has developed a Prompt Corrective Action (PCA) for
recovery or sale of unviable accounts. It has lightened norms for Asset
 Reconstruction Companies by increasing cash stake of ARCs in assets
purchased by them. These measures are expected to tackle the issue of
increasing NPAs.

RBI

1. RBI controls monetary policy in India. The objective of monetary

policy is ultimately to create confidence in the economy by maintaining
a stable price environment for all agents including consumers,
producers, savers and investors. Stability allows all agents to make
sound economic choices.
2. Main ways
1. Focus on exchange rate and inflation.
2. Our monetary policy, till now, used to focus on multiple
indicators such as GDP, IIP, inflation, etc.
3. Why monetary policy is ineffective in India
1. Higher proportion of non-banking credit.
2. Presence of informal sector which is unaffected by the monetary
policy.
3. High Currency-Deposit Ratio.
4. Institutions like mutual funds, venture capital companies have an
abundant influence in effecting the overall liquidity in the
economy.
5. Rigidity in policy and growing fiscal needs.
6. Weak monitoring system.
4. Disadvantages of multiple indicator method
1. No nominal anchor, so no actual target.
2. In this method WPI is focussed. WPI doesn’t take into effect food
and fuel, which were biggest source of inflation problem. That is
why policy has remained ineffective in controlling inflation.
3. Since this strategy doesn’t have a clear cut transparent targets, it
becomes vulnerable to various pressure groups.
4. Therefore Urjit Patel committee recommended to RBI to focus on
inflation targeting. In this strategy RBI will decide a nominal
anchor, say CPI, to monitor inflation. Based on that anchor,
monetary policy will be changed to maintain inflation within
 targeted range.
5. What is inflation targeting
1. Inflation targeting is a monetary policy strategy used by Central
Banks for maintaining price level at a certain level or within a
range. It indicates the primacy of price stability as the key
objective of monetary policy. India adopted inflation targeting
based on Urjit Patel Committee Report. Under this RBI would aim
to contain consumer price inflation within 4 percent with a band
of (+/-) 2 percent.
6. Tools for inflation targeting
1. Liquidity Adjustment Facility (LAF): With this RBI controls
the money supply in the economy. These interest rates and
inflation rates tend to move in opposite directions.
2. Open Market Operations (OMO): RBI buys or sells short-term
securities in the open market, thus impacting money available
with the public.
3. Reserve Requirement: Cash Reserve Ratio (CRR) and the
Statutory Liquidity Ratio (SLR) are increased or decreased in
accordance with inflation or deflation respectively.
4. Bank rate: It is the rate at which RBI lends money to commercial
banks without any security. When bank rate is increased interest
rate also increases leading to inflation.
5. Moral Suasion: If there is a need RBI can urge the banks to
exercise credit control at times to maintain the balance of funds in
the market.
7. Advantages of inflation targeting
1. No one can put pressure on RBI to change the monetary policy as
its aim is to control inflation. If inflation is within the range then
automatically rates will o down.
2. It brings transparency. Even people can understand what RBI’s
policy is and whether it’s yielding result or not.
3. Easy to track progress. Because CPI data released after every
twelve days.
4. Central banks in all advanced economies and emerging market
economies have adopted this method.
5. Policy will be linked to medium term goals, but with some short
 term flexibility.
8.

9. Drawbacks of inflation targeting

1. It puts too much weight on inflation relative to other goals.
Central Banks starts to ignore more pressing problems.
2. Inflation target reduces flexibility. It has the potential to constrain
policy in some circumstances in which it would not be desirable to
 do so.
3. Cost push inflation may cause a temporary blip in inflation.
4. In the CPI inflation, which is what the RBI will target, the weight
of food items is around 50 percent. But food inflation in India is
usually caused by supply side constraints of food. So, monetary
policy has less impact.
5. Monetary policy transmission mechanism is weak in case of India
because of lack of fully developed financial markets and
dependence on money lenders. Thus interest rates may not have
much real impact and RBI may find
6. Target inflation is quite broad from two per cent to six per cent
which should cover most situations.
10. Why lower limit on inflation
1. 2% lower limit is set. Every business has fixed cost of production
like, minimum light bill, phone bill, office rent, staff salary etc.
So, if prices keep falling and falling, then businessman will suffer
losses. He has no motivation to expand business. He will cut
down his production costs, which leads to low employment, etc.
2. If prices of everything fall, Government tax collections also fall.
So, government spends less on education, healthcare, social
sector, etc. which has bad effects on economy.
11. 2016 agreement between Government and RBI
1. Reasserting that monetary policy will be solely handled by RBI.
2. By January 2016, CPI would be contained below 6% and
following years, it will vary between a 2% band. This will bring
taming inflation to forefront for RBI giving secondary priority to
interest rate cut, thus somehow resolving the growth-inflation
dilemma.
3. Criteria has been set that will determine when RBI missed the
target. In such case it has to explain to government the causes and
state remedial measures that will be taken. It will publish a
biyearly document explaining people the source of inflation.
4. Its inflation forecast for next 6-8 months will give an officials
estimate enabling many to form strategies accordingly.
12. RBI autonomy
1. According to a paper published in the International Journal of
Central Banking in 2014, RBI was listed as the least independent
 among 89 central banks considered under the study.
2. These rankings are likely to have improved since the adoption of
inflation targeting and monetary policy committee (MPC).
3. However, vacancies in RBI’s board and government’s reluctance
to fill them up raises questions about the decisions taken and
whether proper deliberations on those decisions are being held.
4. The relationship between RBI governor and boards and the
government has to be healthy, collaborative and mutually
respectful.
5. Post the north Atlantic financial crisis, central bank’s role in the
economy goes beyond monetary policy and extends to growth and
financial stability. With stable tenures and board members from
various fields, this can be achieved.
6. The RBI board has had representatives from agriculture, social
services and even scientists in the past. RBI is not just a monetary
authority worried exclusively on issues of inflation, but much
beyond.
13. Longer tenure for RBI governor
1. Since India is moving to a new rules based monetary policy
framework, a longer and more certain tenure is necessary.
2. Apart from monetary policy, RBI also looks after banking
supervision, currency market, and has an interest in maintaining
overall financial stability in the economy. Hence, a longer tenure
will allow the governor to plan better.
3. A more clearly defined term for the governor will also help reduce
uncertainty in financial markets.
4. Various studies have also shown how central bankers who lived
under the fear of recall were less effective in their duties.
5. A fixed term is also widely seen as a mechanism to reduce the
vulnerability of the central banker to political pressure.
14. Way ahead
1. Any government should avoid uncertainty by clearly defining the
term of the RBI governor.
2. The term should not be so short that it hampers longer term
thinking, and it should not be too long to block new ideas.
3. The government has amended the RBI act to create a monetary
 policy committee (MPC) that will have a term of four years.
4. The inflation target will be decided by the finance ministry every
five years. Clearly, a three year term for the RBI governor does
not make sense in this context. It will lead to misaligned
incentives.
15. Role performed by RBI in regulating financial sector
1. Regulating credit lending by commercial banks in India via
qualitative and quantitative measures, including fixing cash and
liquid reserves requirement, repo and reverse repo rates, credit
guidelines, margin limitations and moral suasion.
2. Granting licenses to setup new banks.
3. Penalising banks for malpractices.
4. Keeping NPAs and other stressed assets of banks in check.
5. Balancing credit uptake with controlled inflation in the economy.
RBI has been successful in reducing inflation from around 5.4%
in 2014 to 3.45% in 2018.
16. Criticisms of RBI’s role
1. RBI has not always been able to contain inflationary tendencies,
especially around 2012-13.
2. RBI has not always been able to maintain a balance between
curbing inflation and promoting growth. Rajan was criticised for
not lowering interest rates leading to lower credit uptake in the
economy.
3. The NPAs have risen with time, especially in public sector banks.
4. Commercial banks complain about higher reserve requirements by
the RBI, leaving them with lesser amount to lend out.
5. The bank has not always seen eye-to-eye with the ruling
Government’s view on economic policy of the country

RBI and Govt stand off

1. At the heart of the RBI-Government standoff is a proposal by the

Finance Ministry seeking to transfer a surplus of Rs 3.6 lakh crore,
more than a third of the total Rs 9.59 lakh crore reserves of the central
bank, to the government. The Ministry has suggested that the RBI and
the government can manage this surplus jointly.
2. For the year ending 2018, RBI had total reserves of Rs 9.59 lakh crore,
comprising mainly currency and gold revaluation account (Rs 6.91 lakh crore)
and contingency fund (Rs 2.32 lakh crore). While Contingency Fund
represents the provisions made for unforeseen contingencies, the Currency
and Gold Revaluation Account (CGRA) represent unrealised
market gains/losses.
3. The Ministry’s view is that RBI has been conservative and at times
arbitrary, especially when it came to the transfer of the interim surplus. The
CGRA accounts for 19.11% of total assets and the contingency reserve for
another 6.41%. Usha Thorat committe suggested that the CGRA should be
12.26% of total assets while the contingency reserve should be 5.5%, totalling
17.76% in all.
NBFCs

1. A Non-Banking Financial Company (NBFC) is a company registered

under the Companies Act, 1956 engaged in the business of loans and
advances. NBFCs whose asset size is of Rs. 500 crore or more are
considered as systemically important NBFCs. NBFCs cannot accept
demand deposits. Unlike banks, CRR does not apply on any
NBFCs. NBFC do not form part of the payment and settlement
system. NBFCs get license under Companies Act, 1956 and Banks
under Banking regulation Act. Deposit insurance facility is not
available to depositors of NBFCs.
2. Current problems with NBFCs
1. Multiple regulatory bodies: RBI doesn’t regulate all the
NBFC. Other institutions such as NHB , SEBI, IRDAI, etc. are
also involved depending on the type of NBFC.
2. Difficulties in access to credit: Interest rates are now going up
both domestically and also in the international market. Investors
are getting reluctant to lend post the IL&FS crisis.
3. Riskier lending pattern: Unlike banks, NBFCs are less cautious
while lending. For example NBFCs have grown their portfolio of
small and micro loans in a big way where there are risks of lack of
credit history, scale and historically high NPAs.
 4. Cascading effect of IL&FS default: Created a liquidity squeeze
for the entire NBFC sector.
5. Delayed Projects: Many infrastructural projects financed by
NBFCs are stalled due to various reasons like delayed statutory
approvals.

Rupee slide

1. In last September, the Indian rupee weakened past the 71 mark for the
first time ever, registering a loss of about 10% of its value against the
dollar since the beginning of 2018.
2. The tightening of liquidity in the West, with the U.S. Federal Reserve
raising interest rates, has played a major role in the strengthening of the
dollar since February last year. Investors who earlier put their money in
emerging markets have recently preferred American assets, which now
yield higher returns. The chief among the troubles of emerging market
economies like India is higher domestic inflation when compared to the
economies in the West

Payment regulator
FRBM

1. FRBM law (2003) was enacted to limit the government’s borrowing

authority under Article 268 of the constitution. The FRBM law
envisaged a fiscal deficit of 3% of GDP by 2008-09, but due to Global
Financial Crisis and amendments over the years the same target has
been set now to 2017-18. This act was mirrored by Fiscal
Responsibility Legislation (FRL) adopted in the states, laws that were
no less important than the FRBM, since states account for roughly half
the general government deficit.
2. Achievements of FRBM act
1. Brought centrality to the issues relating to fiscal consolidation as
the government has to mandatorily present medium term and
annual strategy statements.
2. High fiscal deficits raise the debt-to-GDP ratio and increase
interest payments as proportion of revenue.
3. It improved the fiscal performance of both centre and states,
which has contributed to their economic stability, as reflected in
controlled inflation in the past year.
4. Performance on controlling fiscal deficit has been an important
factor deciding sovereign debt ratings. Adherence to consolidation
has helped us from being downgraded.
5. Strict adherence to the path of fiscal consolidation during pre-
crisis period created enough fiscal space for pursuing counter
cyclical fiscal policy.
3. Reasons for poor performance of Centre in FD
 1. Major hike in capital expenditure.
2. Huge leakages in Govt subsidies.
3. Poor performance of PSUs.
4. Tax evasion and tax avoidance.
5. Low private expenditure.
4. NK singh committee review
1. Instead of fiscal and revenue deficit numbers, the government
should focus on public debt as a proportion to GDP to 60% by
2023 (presently 68%). This is a simple measure of insolvency,
also used by rating agencies.
2. With an aim to provide flexibility to policy makers within the
fiscal deficit, the panel, has suggested a steady target of 3% from
FY18 to FY20 and reach 2.5% by 2022-23.
3. It has also recommended certain strict escape clauses which will
allow the Government deviate from the fiscal road map by 0.5%
for any given year. The escape clauses are proposed for overriding
consideration of national security like acts of war and calamities.
4. It suggested the setting up of a fiscal council, an independent body
which will be tasked with monitoring the government’s fiscal
announcements for any given year.
5. The panel’s report also says that the focus of policymakers should
be on reducing primary deficit rather than fiscal deficit.
6. It will provide its own forecasts and analysis for the same as well
as advise the finance ministry on triggering the escape clauses.
5. Fiscal responsibility Legislation (FRL)
1. Fiscal targets were established, which were the same for all states.
2. The overall deficit was not allowed to exceed 3 percent of GSDP
at any point, while the revenue deficit was to be eliminated by
2008/9.
3. The 12th Finance Commission allowed states to borrow directly
from the market, in the hope that investors would also exercise
some discipline, by pushing up interest rates on states whose fiscal
position had not improved.
4. Finally, broad public discipline was enhanced by introducing new
reporting requirements. States were required to publish annual
Medium-Term Fiscal Policy reports.
6. Assessment of FRLs
1. FRLs clearly made an important difference, both in terms of
outcomes and behaviour. States kept their average fiscal deficit at
2.4 percent of GSDP in the 10 years after the FRL, well below the
prescribed ceiling of 3 percent of GSDP.
2. Another indication that the FRL had a significant impact is that
states kept a tight rein on wage and salary expenditure.
3. And there was also a striking change in behaviour of budgeting of
states. Budget forecasting procedures improved, and there was a
more cautious approach to guarantees, a build-up of cash
balances, and a reduction in debt.
4. Therefore, FRL had a significant impact on both fiscal deficit and
revenue deficit. Most states achieved and maintained the target
fiscal deficit level (3 percent of GSDP) and eliminated the
revenue deficit soon after the introduction of their Fiscal
Responsibility Legislation (FRL).
7. Reasons for effective consolidation
1. Although FRL played an important role in keeping the deficit low,
it was not the sole impetus behind this impressive fiscal
performance.
2. Acceleration of GDP growth helped boost states revenues. Better
tax collections (VAT revenue) and improved jurisdiction. Own tax
revenues as a percent of GSDP increase by 1 percentage point.
3. Index rankings like Ease of Doing Business take cognisance of
existing deficit levels has forced states to take appropriate actions
against deficit levels.
4. Increased transfers from the centre because of the 13th Finance
Commission recommendations and the surge in central
government revenues helped.
5. Decline in interest payments on account of the debt restructuring
package offered by the centre and increased central CSS
expenditure.
6. State competitiveness and federal competition amongst states is
also a big promoter for reducing deficit levels.
8. Reasons for poor performance of states in FD
1. UDAY scheme.
2. Farm loan waivers announced by various states like AP,
 Telangana, UP, etc.
3. Lack of fiscal discipline.
4. Stagnancy of state’s own tax revenue.
5. Implementation of state’s pay commision recommendations due
to pressure form state Govt employees.
6. Revenue uncertainties on account of implementation of GST.
9. Greater market based discipline on state government finances is
imperative. There is a complete lack of correlation between the spread
on state government bonds and their debt or deficit positions.

Cashless economy

1. The ratio of cash to GDP is one of the highest in the world at 12.42%.
Cashless economy is one where the financial transactions happen
primarily through various electronic channels such as e-wallets, credit
and debit cards, etc. Faceless, Paperless, Cashless is one of professed
role of Digital India.
2. Benefits of cashless economy
1. Time savings and convenience.
2. Safety from money being lost, stolen, robbed etc.
3. Increased efficiency in welfare programmes as money is wired
directly into the accounts of recipients. It will plug loopholes in
public welfare programmes.
4. Efficiency gains as transaction costs across the economy should
also come down.
5. Reducing use of cash would also strangulate the grey economy,
prevent money laundering and even increase tax compliance,
which will ultimately benefit the customers at large.
3. Barriers to cashless transactions
1. Lack of access to banking for a large part of the population as well
as cash being the only means available for many.
2. Lack of internet access in rural areas also act as barrier to cashless
economy.
3. An overwhelming majority of retailers, suppliers and service
providers belong to the unorganised, informal sector. They do not
have the infrastructure to offer card based transactions.
 4. The perception of consumers also sometimes acts a barrier. It is
universally believed that having cash helps you negotiate better.
5. High transaction cost for using payment gateways.
4. How can the situation be improved
1. By effective implementation of initiatives like Jan Dhan Yojana.
2. Creation of efficient and reliable internet infrastructure as all
digital payments rely on internet connectivity through
implementation of new technologies like googles project LOON,
drones, etc.
3. Increasing cyber security network to avoid scams. Constitute an
independent digital payment regulatory body which would act as
regulator for digital payment platforms.
4. Introducing apps in major regional languages as presently BHIM
app is only available in English and Hindi.
5. Asking the banks to keep merchant discount rates to minimum to
encourage consumers to transact via debit-credit cards.
6. Constituting grievance redressal body for complaints from
consumers.
5. Government efforts to promote digital transactions
1. Aadhar enabled payment system (AEPS).
2. Bharat Interface for Money (BHIM).
 1.
6. RBI efforts
1. To promote electronic transactions RBI would review guidelines
relating to mobile banking, NEFT and prepaid instruments which
 include m-wallets, prepaid cards and paper vouchers.
2. RBI will help in building a robust e-payment and settlement
infrastructure. Strengthening of existing payment systems will be
done.
3. The Unified Payments Interface (UPI) will make it convenient for
customers to use digital channels to make payments for a host of
activities ranging from mobile bills to restaurant payments.
4. Usage of Aadhaar for authentication would be encouraged by
RBI.

GDP

1. Gross domestic product (GDP) is the market value of all officially

recognized final goods and services produced within a country in a
given period of time. GDP includes the output of foreign owned
businesses that are located in a nation following foreign direct
investment.
2. GDP can be determined in three methods
1. Expenditure Approach (Aggregate Demand): The full equation
for GDP using this approach is GDP = C + I + G + (X-M).
2. Income Approach (adding together factor incomes): GDP is the
sum of the incomes earned through the production of goods and
services. This is Income from people in jobs and in self-
employment (e.g. wages and salaries) + Profits of private sector
businesses + Rent income from the ownership of land. Transfer
payments, Income not registered with the tax authorities are
excluded.
3. Production Approach: This measure of GDP adds together
the value of output produced by three sectors in the economy
using the concept of value added. Value added = value of
production - value of intermediate goods.
4.
3. Why GDP measurement is not accurate
1. Much activity is not officially recorded – including subsistence
farming and barter transactions.
2. All value additions for self consumption, which are not put out in
the market, are not accounted in the GDP.
3. GDP does not take into account the value of non-monetised
activity such as work of housewives, volunteering, etc.
4. GDP does not measure the quality of life. For example, OECD
annually issues a report based on a study of 140 countries
indicating the levels of happiness in those countries. Denmark,
Finland, have ranked at the top and India is no where to be seen.
5. It does not allow for the health of children the quality of their
education or the strength of marriages, neither compassion nor
devotion to country which makes life worthwhile.
6. GDP does not measure the inequalities in the society.
7. GDP does not take into account the sustainability of the future
GDP. More measurable things such as damage to our
environment are also left out.
8. GDP also assumes all growth is good growth. So savings from
energy efficient devices counts as a negative for GDP growth,
even though it is a positive for society.
9. GDP does not differentiate between more or less productive
economic activity (i.e. implicitly assumes that economic activity
is the desirable ends rather than a means to an end).
4. Pros
1. It is the least inaccurate method to compute the growth rate of the
economy.
2. If by growth one means the expansion of output of goods and
services, then real GDP which measures growth without the
effects of inflation is perfectly satisfactory.
3. It captures the wellbeing that results from the production of goods
and services.
4. Easier to compute than other indicators.
Social progress index (SPI)

1. It is an aggregate index of social and environmental indicators that

captures 3 dimensions of social progress which are basic human needs,
 foundations of wellbeing, and opportunity.
2. Limitations of other indices
1. GDP: While the GDP measures the economic progress of a
nation, it does not include non-market activities like gardening at
home, mother taking care of child, etc. It also excludes factors like
environment, happiness, equality, access to justice etc.
2. Gini coefficient: It measures the income inequalities among
citizens but ignores other aspects like health, education and other
social benefits.
3. GHI: Originally developed by Bhutan, it measures the happiness
level but ignores elements like gender equality, quality education
and good infrastructure. Further it can’t be used for international
comparison due to subjectivity in the meaning of happiness.
4. HDI: It covers life expectancy, mean years of schooling, expected
years of schooling, and living standards but it falls short in capture
of unequal distribution of wealth, environmental and
infrastructural development.
3. Benefits of SPI
1. It is outcome based rather than the amount of money spent or
efforts involved. So, it can bring betterment in policy making
because it measures ground level improvement.
2. It is more comprehensive than other indicators. It contains the
basic human needs like water, shelter, safety, etc., well being like
ecosystem sustainability, health, access to knowledge, etc.,
opportunity like personal freedom, tolerance, etc.
3. Relevant to all countries as it provides a holistic measure of social
progress. So, it can be suited for international comparison.
4. It is in sync with SDGs and help achieve them.
4. The index has so far been the most comprehensive way of measuring a
country’s social progress and is independent of any economic indicator,
thus giving an opportunity to examine the relationship between social
progress and economic growth. It can thus be used as a complementary
to GDP.

Inclusive growth
1. Inclusive growth is economic growth that is distributed fairly across
society and creates opportunities for all. In other words, inclusive
economic growth is not only about expanding national economies but
also about ensuring that dividends reach the most vulnerable people of
societies. According to recent Oxfam report, top 1% of Indians hold
58% of India’s wealth. This has increased from the time of 1991
economic reforms. Goal 8 of SDG specifically aims to promote
inclusive and sustainable economic growth.
2. Causes of income inequality
1. The main reason for low level of income of the majority of Indian
people is unemployment and underemployment and the
consequent low productivity of labour.
2. Poor growth in agriculture sector.
3. Women left out of the economy due to patriarchal structures.
4. Politics and corporate nexus.
5. The increase in the salary of higher-paid employees in absolute
terms is more than the lower-paid employees. New information
technology played a central role in driving up the skill premium,
resulting in increased labour income inequality.
6. High tax evasion and avoidance and give birth to a parallel
economy.
7. Economic survey points out that subsidies on railway fare, diesel,
petrol, etc., benefit rich more than the poor.
8. Trade has been an engine for growth in many countries by
promoting competitiveness and enhancing efficiency.
Nonetheless, high trade and financial flows between countries,
partly enabled by technological advances, are commonly cited as
driving income inequality.
3. Inclusive growth and sustainability
1. Women: Women account for 49.5 % of the population of the
country and their inclusion in the workforce and economic
activities will increase GDP by 27% according to IMF and will
contribute towards sustainability of the economy.
2. Farmers: In India, more than half of the population is dependent
on agricultural activities. Inclusion of farmer by providing them
with the benefit of growth is a must for food security and
development of food processing industries. This will also lead
 towards doubling farmer’s income by 2022.
3. Youth: The working age group 15-59 years account for 62.5% of
India’s population. Inclusion of youth in countries economic
journey by providing them with skills and employment will
contribute greatly in the long term economic growth.
4. Poor: Food security and employment opportunity lead to better
nutrient intake which ultimately provides a healthy workforce to
the nation.
5. Regional Inclusivity: Some social groups and territories have
been left out for decades and need support. This leads to extremist
and secessionist tendencies to create volatility.
6. Tribal: In tribal areas where the development programs for
economic growth come in conflict with the cultural sentiments of
the tribal population, which hampers social sustainability.
4. Consequences
1. High and sustained levels of inequality, especially inequality of
opportunity can entail large social costs. Entrenched inequality of
outcomes can significantly undermine individuals educational and
occupational choices.
2. Higher inequality lowers growth by depriving the ability of lower
income households to stay healthy and accumulate physical and
human capital. For instance, it can lead to underinvestment in
education as poor children end up in lower quality schools and are
less able to go on to college.
3. Extreme inequality may damage trust and social cohesion and
thus is also associated with conflicts, which discourage
investment.
4. The Arab Spring of 2011 and subsequent political conflicts in the
Middle-East, rise in extremist forces in the world is attributed to
rising disparity between nations and within particular nations.
5. How to fight wealth inequalities
1. Clamp down on tax dodging by corporations and rich individuals.
2. Invest in universal, free public services such as health and
education. Also ensure adequate safety nets for the poorest,
including a minimum income guarantee.
3. Share the tax burden fairly, shifting taxation from labour and
consumption towards capital and wealth. This will make rich to
 contribute more.
4. Introduce minimum wages and move towards a living wage for all
workers.
5. Wealth inequalities are also glaring among men and women.
Introducing equal pay legislation and promoting economic
policies to give women a fair deal will reduce gender wealth
inequalities.
6. Agree a global goal to tackle inequality.

Economic growth across states

1. Despite high economic growth, there was no uniform growth across

states in India. While the states like AP, TS, Maharashtra witnessed a
GSDP of 10%, some North-eastern states performed very badly. Five of
the six best performing states in 2001 - Gujarat, Tamil Nadu, Andhra
Pradesh, Kerala and Punjab - continue to be the top performers in 2011.
2. Factors for non-uniform growth in India
1. Natural resources: Some states such as West Bengal, Jharkhand,
Odisha, Chhattisgarh etc. are endowed with better mineral
resources while others such as Punjab and Haryana have better
irrigation facilities.
2. Historical reasons: Neglect of some regions and preference of
other regions in terms of investments and infrastructure facilities.
Historical factors that go back to mughal era and became
prominent in British Era, have also contributed to regional
inequities.
3. Government Polices: Faulty planning process inherited from
colonial rule in the post-independence era. Red tapism,
corruption, lack of political will and lack of ease of doing of
business environment and political and administrative
inefficiency. Also Industrial reform policy did not encourage
similar growth momentum in all states as investment expenditures
undertaken by individual states differed.
4. Access to markets, communication and transport: Coastal
states like GJ, MH, KL, Andhra Pradesh etc have efficient port
facilities for transport.
5. Social and physical factors: Naxal-affected areas and areas with
 under developed social indices (education and health) are less
attraction to investors. Availability of human and natural resources
and conducive environment across different states.
6. LPG reforms: Transfer of power from government to markets in
deciding the location and level of investment benefitted already
richer states. For example, States like Bihar, MP, Rajasthan etc.,
lagged behind as compared to significantly growing states like
Gujarat, Maharashtra etc.
7. Growth experience of states: Inability of states to sustain higher
growth as a result of dependency on agriculture only. Ex: Steady
acceleration of agricultural growth was seen only in Karnataka,
Kerala and WB whereas industrial growth fuelled states like
Gujarat, Punjab etc. Maharashtra and West Bengal were the only
states which witnessed high growth rates across all 3 sectors of
agriculture, industry and services.
8. Uni-directional growth spill over among states: States like
Rajasthan and WB are considered growth-inducing states as they
subsequently help in growth of other states when they grow, but
vice-versa was not observed.
3. Measures to ensure backward states catch up to the growth wagon
1. Constitutional provisions: Article 371(A-J) includes special
provisions for some states for creation of development boards,
facilities for technical education, vocational training, employment
in public services etc.
2. Aspirational Districts: NITI Aayog’s Aspirational Districts
Programme with a focus on 115 districts which fare poorly in
health, education, skill development etc, especially in backward
districts of BH, UP and MP. The states have been asked to be
considered as sites of potential transformation rather than poor or
backward areas.
3. Higher central financial assistance in schemes: 90:10 ratios in
North-Eastern states to strengthen capacity.
4. Setting up of IITs and other higher quality professional
institutions: For ex: IIT in North Karnataka region.
5. Increasing regional connectivity in transport infrastructure:
UDAN scheme, expressway, Industrial corridors etc.
6. Schemes: Increasing penetration of Gram Swaraj Abhiyan aimed
 at improving socio-economic indices in villages lagging behind in
key indices. Other schemes like Pradhan Mantri Ujjwala Yojana
(PMUY), DDUGJY, Saubhagya scheme, Swachh Bharat Abhiyan
directly or indirectly help in mainstreaming some of the most
backward areas in India. Concentration of Mudra loan scheme in
underprivileged districts to help create jobs.
7. Solving problems specific to backward region like Naxalism;
patriarchy; discrimination based on sex and caste.
8. Scientific and technological developments like prudent
interlinking of rivers; internet access through innovative projects
like project loon; prospect of cloud seeding in drought prone
areas; e-education; e-health etc.

Financial inclusion

1. Objectives@75
1. Banking for the unbanked (Bank accounts, Digital payment
services).
2. Securing the unsecured (Insurance, social security and asset
diversification).
3. Better access to credit at a reasonable cost for those presently
excluded.
2. Current situation
1. The government has launched many flagship schemes to promote
financial inclusion and provide financial security to empower the
poor and unbanked in the country. These include the Pradhan
Mantri Jan Dhan Yojana, Pradhan Mantri Mudra Yojana, Stand-
Up India Scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana,
Pradhan Mantri Suraksha Bima Yojana, and Atal Pension Yojana
(APY).
2. The promotion of Aadhaar and DBT schemes facilitate financial
inclusion.
3. Awareness and use of mobile payments in India had been low. In
2016, the percentage of the population using mobile money
services in India was only 1 percent.
4. In terms of credit access, India has considerable ground to make
up. Informal credit still accounts for more than 40% of total credit
 in the rural India.
3. Constraints
1. Lack of financial literacy amongst low income households and
small informal businesses.
2. The high cost of operations of the traditional banking model.
3. Excessive regulatory requirements on products, and market entry
to new technologies.
4. Poor internet penetration.
4. Way forward
1. Launching a new scheme for comprehensive financial literacy. An
Arthik Shiksha Abhiyan will help improve financial literacy and
may be integrated in the regular school curriculum.
2. Assess the performance of banking correspondents and give better
incentives. The issue of inadequate training is being addressed by
the RBI.
3. Facilitating growth of online and paperless banking. Expand
digilocker services by including more issuers of documents.
4. Using technology to improve the assessment of credit worthiness
for households. One of the main constraints in providing low-
income households and informal businesses is the lack of
information available with formal creditors to determine their
credit worthiness.
5. Leverage payment banks and other platforms to scale up
payments systems in underserved areas. Payments through the
USSD channel have an advantage over the internet in that it can
also cover a large proportion of non-smartphone users.
6. Household acceptance of formal financial products, such as
insurance, equity, etc., can be increased if regulations governing
these are simplified and made more consumer friendly.

Exports

1. Foreign Trade Policy 2015-20 aims to double the export potential to

$900 billion and achieve the 3.5% world share of exports from about
2% by 2020.
2. External impediments in growth of exports in India
 1. Global growth slow down, which as per IMF it is expected to
shrink to 3.3 percent in 2019.
2. Non-tariff barriers by other nations, mainly in case of
phytosanitary products e.g. By European Union in case of
mangoes.
3. Increasing trade wars between USA, China and other countries is
leading to uncertain markets.
4. Protectionist measures, along with withdrawal of Generalised
System of Preferences (GSP) status, by US, which is our largest
export destination.
5. In most of our FTAs, our counter parts are getting more benefits.
For example, India-ASEAN FTA has negative impact on India’s
export of oil palm and textiles because of competition from
Indonesia and Vietnam. Most of India’s PTAs and FTAs have
limited product coverage.
6. Global issues like Brexit, macroeconomic stress in Argentina,
Turkey and Italy, and the US-China wrangle cause uncertainty in
the markets.
7. Competition from neighbouring countries facilitating cheap labour
and favourable policies. Ex: Competition in Textile from Vietnam
and Bangladesh.
8. Slow progress in drafting trade agreements impacts India's ability
to participate in global value chains, affecting export growth. Ex:
RCEP.
3. Internal impediments in growth of exports in India
1. India’s exports are not diversified which is evident from the fact
that top 20 export categories account for 78% of the total.
2. India is still exporting majority of raw material instead of the final
products. Ex: India is exporting cotton yarn rather than technical
textiles
3. Poor logistics infrastructure results in weak trade facilitation
regime. In World Bank’s Logistics Performance Index 2018, India
ranks at 44, below China (26) and Vietnam (39).
4. India’s ill-conceived trade pacts have resulted in inverted duty
structure – High import duties on raw materials and intermediates,
and lower duties on finished goods. This discourage exports and
encourages imports.
 5. Land and labour reforms are still pending, hindering large scale
investments in export sectors.
6. In case of agricultural exports, low value addition & lack of food
processing keeps export low by value.
7. Tightly regulated markets do not give enough space for exports to
grow. Under the World Bank’s Doing Business rankings, India
ranks 77, compared with China at 46 and Vietnam at 69.
8. As per Economic Survey, there is huge state wise regional
disparity in prevalence of manufacturing industries where few
states contribute to major chunks of export.
4. Foreign Trade policy, 2015
1. It introduced two new schemes known as MEIS and SEIS. These
new schemes replace multiple schemes earlier in place, each with
different conditions for eligibility and usage.
2. Branding campaigns planned to promote exports in sectors where
India has traditional Strength.
3. Online filing of documents, online inter-ministerial consultations
and simplification of processes, digitisation and e-governance.
4. Provide incentives to e-commerce companies exporting products
from sectors that create jobs.
5. Within manufacturing exports, the government will chart out a
strategy to promote key sectors like engineering products,
electronic goods and textile exports.
6. Within services, a host of incentives are likely to be rolled out to
sectors such as tourism, hospitality, education, etc, which might
be promoted in the form of project exports from India.
5. Measures
1. Diversification: The Indian export basket is skewed in favour of
agricultural commodities. The global crash in commodities prices
has thus adversely affected Indian exports. The government must
see this as an opportunity and attempt to diversify its export
baskets.
2. Sunrise industries: For fast returns, there must be increased
focus on a few high growth industries like food processing,
footwear manufacturing, etc.
3. Quality control based on international standards so as to prevent
 our goods from non-tariff barriers.
4. Initiatives like Sampada, which are promoting food processing
industry should be given impetus.
5. Improve logistics, by developing industrial corridors, waterways,
etc. as in case of Sagarmala and Bharatmala.
6. Ease of doing business by reducing red tape, enhancing foreign
direct investment limits, revamping labour laws and
environmental clearance processes, thus making manufacturing
hassle free.
7. Services related exports can be quickly scaled up and are more
remunerative. Thus, the government should also focus on this
segment for more value.
8. SEZ: Reviewing the SEZ policy and tweaking it to ensure better
utilisation of the land and other incentives provided.
9. Labour reforms: A key problem cited in the skewed business
structure in India, which favours small scale manufacturing which
is inherently inefficient is the stringent labour regulations. Reform
of these laws would help the businesses scale up.

Labour reforms

1. Labour reforms is one of the important factor for success of Make in

India programme and making India a manufacturing destination. Of
India’s total workforce of about 52 crore, agriculture employed nearly
49 percent while contributing only 15 per cent of the GVA. Industry
and services accounted for 13.7 and 37.5 percent of employment. By
some estimates, India’s informal sector employs approximately 85
percent of all workers.
2. Issues
1. Labour laws only apply to just 10% of employees in formal
employment. 90% are out of it. The wages in the informal sector
can be one twentieth of those in firms producing the same goods
or services but in the formal sector.
2. Labour being in concurrent list, many states and even centre have
enacted numerous laws. In 2016, there were 44 labour laws under
the statute of the central government. More than 100 laws fall
under the jurisdiction of state governments. The multiplicity and
 complexity of laws makes compliance and enforcement difficult.
3. Many of the laws are obsolete and hamper ease of doing business.
For example, Industrial Disputes Act (IDA) requires firms
employing more than 100 workers to seek permission from state
governments to lay off workers.
4. Employers contend that labour laws in India are excessively pro-
worker in the organized sector. There is too much of inspection,
and industries are looked upon with suspicion.
5. Another major weakness in current labour reforms is less focus on
apprenticeship. Our education system is not responsive to need of
market therefore apprenticeship becomes important.
6. Due to the complex and massive numbers of labour laws,
industries prefer to hire contractual labourers not covered under
these laws and without any social security or termination
protection.
7. According to the India Skill Report 2018, only 47 per cent of
those coming out of higher educational institutions are
employable.
8. We currently lack timely employment data of the work force. This
lack of data prevents us from rigorously monitoring the
employment situation and assessing the impact of various
interventions to create jobs.
3. Solutions
1. NITI ayoog recommends complete codification of central labour
laws into four codes by 2019.
2. Labour laws should be applied universally and there should not be
categorisation like applicable to 5-10 or 20 employees.
3. Encourage the wider use of apprenticeship programmes by all the
enterprises. This may require an enhancement of the stipend
amount paid by the government.
4. Enhance female labour force participation. by ensuring effective
implementation of and employers’ adherence to the recently
passed Maternity Benefit (Amendment) Act, 2017, and the Sexual
Harassment of Women at Work Place.
5. Conduct an annual enterprise survey using the goods and service
tax network (GSTN) as the sample frame. Increase the use of
administrative data viz. EPFO, ESIC and the NPS to track
 regularly the state of employment.
6. Enhance occupational safety and health (OSH) in the informal
sector through capacity building and targeted programmes.
7. Make compliance with the national floor level minimum wage
mandatory. Expand the Minimum Wages Act, 1948, to cover all
jobs. Enforce the payment of wages through cheque or Aadhaar-
enabled payments for all.
8. Designing single window portals for clearance of various
formalities will help not only in reducing red tapism and quicker
compliance.
9. Due to already overburdening of judicial system, a separate
tribunals for labour issues may be created.
4. While addressing the issue of simplifying and codifying the labour laws
and for ensuring ease of compliance to promote an enabling business
environment, the overall interests of labour like wages, employment,
social security, working environment, health and safety etc., should be
duly addressed.
5. Government steps
1. Shram Suvidha Portal: This allots unique labour identification
number (LIN) to units and allow them to file online compliance
for 16 out of 44 labour laws.
2. Random inspection scheme: To eliminate human discretion in
selection of units for inspection, and uploading of inspection
reports within 72 hours of inspection mandatory.
3. Universal Account Number (UAN): Enables 4.17 crore
employees to have their Provident Fund account portable, hassle
free and universally accessible.
4. Apprentice Protsahan Yojana: Government will support
manufacturing units mainly and other establishments by
reimbursing 50% of the stipend paid to apprentices during first
two years of their training.
5. RSBY: Introducing a smart card for the workers in the
unorganised sector seeded with details of two more social security
schemes.
6. The National Career Service (NCS) portal brings together job
seekers, employers and other stakeholders on a common platform
by providing services like job matching, career counselling, etc.
 7. Payment of Wages Bill, 2016 it enable the centre and state
governments to specify industrial units which will have to pay
wages only either through cheques or by transferring into bank
accounts.
8. Modal shops and establishment bill, 2016 tries to boost the
employment generation in general, especially for women. The law
as they will be permitted to work night shifts, with adequate safety
and other facilities such as drinking water, canteen, first-aid,
lavatory and crèche facilities at workplace.
6. Why labour laws are difficult in India
1. Trade unions have strong influence in India. They oppose any
labour reforms and no consensus is generally achieved.
2. No political will too, as labour laws is very sensitive subject.
3. Presence of strong opposition from mainstream pro-labour parties
also present a challenge to them.
4. Relaxation may affect labour rights like minimum wages, hire and
fire easily, etc.
5. Labour is concurrent subject. So, both states and centre have to
come to agreement for meaningful labour reforms, which is often
difficult.
7. Demands of the labour organisations
1. Increase in the daily minimum wage for unskilled workers from
Rs.246 to Rs.692.
2. Stop contractualisation of labour for perennial work.
3. Ensure the payment of same wage for contract workers as regular
workers.
4. Scrapping of proposed labour law amendments.
5. Universal social security for all workers.
8. Concerns raised by labour organisations
1. Organised labour in India, sees itself as a loser in the changes
unleashed by liberalisation and globalisation. It fears that if the
government goes ahead with some of its proposed reforms more
losses are gonna occur.
2. Dismissal laws in France are more stringent than in India, but that
did not come in the way of France’s prospering for over a century.
China itself has made its labour laws more stringent.
 3. Some studies suggest that giving workers greater protection helps
increase productivity by giving workers more incentives to invest
in firm specific skills.
4. There is also evidence that the bias against workers in Indian
industry may have more to do with tax incentives for capital than
with restrictive labour laws.
5. Contract labour is a serious assault on workers rights. The
Supreme Court has made strong observations on companies resort
to contract labour in order to avoid statutory obligations. This was
one of the reasons for labour unrest at Maruti’s plant at Manesar
in Haryana last year.
6. Privatisation and FDI are other areas of concern for organised
labour. With government opening up FDI, merging the public
sector banks, unions see these moves as a way that impacts their
jobs adversely.
9. Improving employment data
1. NITI Aayog’s Task Force made recommendations to create a 21st
century statistical system in India for the generation of
comprehensive employment, unemployment and wage estimates
on a sustained basis.
2. Conduct of household surveys on annual basis.
3. Introduction of time-use survey, that be conducted every three
years (such surveys also help in measuring women’s participation
in unpaid work).
4. Use of technology for faster and better data collection, processing
and assimilation.
5. Introduction of annual enterprise survey using enterprises
registered with the GSTN as the sample frame.
6. Separate annual survey of enterprises excluded from the GSTN
database (i.e. those in health and education sectors, and those with
turnover < INR 20 Lakh in other sectors).
7. Adoption of inclusive and wider definition of ‘formal workers’.
8. Adoption of GSTN across all legislations, ministries and
departments as the universal establishment number.
10. Job creation
1. As outlined in the NITI Aayog’s Action Agenda, India suffers
more from the problem of underemployment (i.e. low
 productivity, low wage jobs) than unemployment. For example,
agriculture engaged nearly 50% of the workforce but contributed
15% to GDP.
2. Expansion of the organized sector to create well-paid high
productivity jobs.
3. Shift towards labour intensive goods and services e.g. apparel,
footwear, food processing, tourism etc.
4. Expansion in export market by developing Coastal Employment
Zones (CEZ), using better technology, and improving on quality
to remain competitive. Leverage on economies of scale offered by
exports market potential.
5. Filling in for ageing workforce of countries like China and also
rising labour wages there.

Employment
Way forward on job creation

1. Shift development focus towards labour intensive sectors like Food

Processing, leather and footwear, wood manufacturers, textiles, etc.
2. Cluster development to support job creation in MSMEs.
3. Formalisation of workforce where growth in jobs must be inclusive and
new jobs need to be decent and secure with better work conditions.
4. Greater focus is required on better and relevant skilling opportunities.
5. Expansion in export market by developing Coastal Employment Zones
(CEZs), using better technology, etc.
6. Incentivising industry by reducing corporate tax, easing lending norms,
improving ease of doing business, etc.
 7. Increase public investments in health, education, police and judiciary to
create many government jobs.
8. The government should introduce reforms to quell the wage gap and get
more women to become a part of the country's workforce.
9. India needs good quality jobs not merely large number of jobs. NITI
Aayog’s Three Year Action Agenda also reported that
underemployment is a more serious issue than unemployment.

Employment data

1. NSSO started an exercise named the Periodic Labour Force Survey

(PLFS) that will provide annual estimates of labour force, employment,
unemployment, industry structure of workforce, nature of employment
and wages nationally and regionally on an annual basis. The PLFS
replaces the NSSO’s Employment-Unemployment Survey.
2. Changes introduced in PLFS Survey
1. Rather than using monthly per capita expenditure of the
household, PLFS uses education levels of members of the
households.
2. Better training of field officers for a uniform understanding.
 3. Usage of technology by adapting the World Bank Computer
Assisted Personal Interviewing (CAPI) solution platform with
appropriate inputs and data collected in the field using tablets.
4. Quarterly Bulletin contains key indicators for urban areas only,
whereas the Annual Report contains the indicators for both rural
and urban areas.

Extent of formal sector and formal employment

1. Formalisation of economy means to bring firms and their transactions

under tax-net, credit supply, and regulations such as the Companies Act
and labour laws, possibly giving social security to the employees.
2. Various ways of measuring formal sector employment
1. Measuring the extent of formal economy can be approached
through various ways. This gives rise to discrepancies in
estimating its extent.
2. Formal economy can include all those units who are registered
under any of the statues governing business – such as Companies
Act, Factories Act, Industrial Disputes Act, etc.
3. Measuring the number of salaried employees along with those
businesses that regularly file tax returns.
4. Estimating through registrations under GST or with the EPFO or
ESIC can be used as measures for estimation.
3. Depending on the criteria chosen, there are varying results
1. A recent study of EPFO data – “Towards a payroll reporting in
India” – states that 80% of workforce in India is unorganised
labour i.e. not registered with EPFO or other formal sector
databases..
2. According to economic survey, from a social security perspective,
formal employment is estimated at 31% of the non-
agricultural workforce.
3. According to economic survey, from a tax perspective, formal
employment is nearly 54% of the non-agricultural workforce.
However, this figure excludes many formal workers in sectors
outside the GST such as health & education.
4. Further, assessments of employment are hampered by lack of
 timely data, as the employment surveys are conducted after a
significant time lapse.
4. Thus, the measurement of extent of formal economy and formal
employment remains hazy. Nevertheless, in order to spread
formalization and bring more Indians into the income tax net,
government has undertaken a number of monetary and taxation reforms
such as GST, Demonetisation, changes in labour codes, measures
against black money, etc.

Minimum wages

1. The Minimum Wages Act, 1948 protects both regular and casual
workers. Minimum wage rates are set both by the Central and the State
governments for employees working in selected ‘scheduled’
employment. Minimum wages have been set for different categories
of workers according to skill levels, location and occupations. The Act
did not prescribe norms for fixing the level of the minimum wage.
2. Issues with minimum wages
1. Massive expansion in job categories and wage rates has led to
major variations not only across states but also within states.
2. Lack of uniform criteria for fixing the minimum wage rate. The
notified lowest minimum wage rate varies from Rs. 115 in
Nagaland to Rs. 538 in Delhi.
3. Minimum Wages Act, 1948 does not cover all wage workers as
one in every three-wage workers in India is not protected by it.
4. Presence of gender discrimination. For instance, women dominate
in the category of domestic workers while men dominate in the
category of security guards. While both these occupations fall
within the category of unskilled workers, the minimum wage rate
for domestic workers within a state is consistently lower than that
for the minimum wage rates for security guards.
5. It has been observed that compliance levels are significantly
higher for regular wageworkers when compared to casual wage
earners.
3. Way forward
1. Simplification and rationalisation of minimum wages as proposed
under the Code on Wages Billshould be taken ahead. The
 proposed Code on Wages Bill should extend applicability of
minimum wages to all workers in all sectors and should cover
both the organized as well as the unorganized sector.
2. Setting a National Floor Level Minimum Wage by the Central
Government. Accordingly, the states can fix the minimum wages,
which should not be less than the ‘floor wage.’
3. The Code on Wages Bill should consider fixing minimum wages
based on either of the two factors- (i) the skill category i.e
unskilled, semi-skilled, etc and (ii) the geographical region, or
else both. This key change would substantially reduce the number
of minimum wages in the country.
4. A national level dashboard needs to be set up by the Ministry of
Labour & Employment, which shows the date of the last revision
in the minimum wage adjunct to the mandated period. This would
enable dissemination of information and increased transparency in
the system.
5. Role of technologies including a variety of online, mobile phone
and networking technologies can be used to streamline the
complex system. It can help the workers to process the
information on different wages and use it for their benefit.
6. Grievance redressal including an easy to remember toll-free
number for complaints and a culture of swift action on them
should be established.
4. An effective minimum wage policy is a potential tool not only for the
protection of low-paid workers but is also an inclusive mechanism for
more resilient and sustainable economic development.

Fixed-Term Employment Rules

1. FTE is a contract in which a company hires an employee for a

specific period of time. The employee is not on the payroll of the
company. Their payment is fixed in advance and is not altered till the
term expires. Such contracts are given out for temporary jobs and not
for routine jobs.
2. Such workers are entitled to all statutory benefits (work hours,
wages etc.,) available to a permanent worker in the same
establishment. Industrial Employment (Standing Orders) Central
 (Amendment) Rules, 2018 in March notification allowed all industries
to hire workers on contract with a fixed tenure.
3. Benefits of Fixed-Term Employment (FTE)
1. Fixed wages and work conditions: The workers are ensured to
have a fixed wage and work conditions from before. This provides
them livelihood security for the given period.
2. Workers benefit: The workers are entitled to have statutory
benefits. Therefore, they gain greater sense of accountability from
the principal employer.
3. Forecast labour costs: The fixed term contract enables the
business to forecast their labour costs. It also provides relief
against protests related to salary hikes etc. Due to in-built
flexibility in hiring and firing the workers, the business will be
able to safeguard its commercial competitiveness through finding
suitable employees.
4. Short term Employment shortage: During peak seasons,
industries face shortage of workers. Fixed-term employment will
help them to hire and remove workers according to their
requirements without extra legislative burdens.
5. Job creation: FTE is expected to boost job creation, provided the
cost of capital does not remain so low as to deter labour use.
4. Criticism against the move
1. Hire-and-fire: Central trade unions are protesting against the
government’s policy of hire-and-fire. Trade unions will go
unrecognised by the move.
2. Removal of Safety nets: As the government has enabled the
employers to sidestep even the minimum protection offered by the
Factories Act 1948, Industrial Disputes Act 1947 and Contract
Labour (Regulation and Abolition) Act 1970.
3. Undermines Job Regularisation: Collective bargaining talks for
wage increase will not be possible. Business will have no
incentive to regularise the jobs.
4. Against the earlier judgments of Supreme court: The courts
have allowed FTE only in seasonal activities. The Supreme Court
has ruled earlier that a fixed-term contract worker who had
worked for 7 years should be regularised.
 5. Industries will be converted into Sweatshops: The major reason
of conflict of workers with management (e.g. in Maruti-Suzuki
incident) is common issues of non-recognition of trade unions,
temporary workers far outnumbering regular workers and paying
them very low wages. The move may encourage the same.
5. The norms should be arrived at in a transparent, consensual manner.
Labour reforms will not be politically acceptable in the absence of a
better social safety net.

Indian statistical system

1. Recently, there have been controversies and debates over the credibility
of data and statistics published by different agencies including
government bodies, independent think tanks and private players.
2. The Ministry of Statistics & Programme Implementation (MoSPI) was
created in 1999. The Ministry has two wings, Statistics and Programme
Implementation. The Statistics Wing called the National Statistical
Office (NSO) consists of the Central Statistical Office (CSO) and the
National Sample Survey Office (NSSO). National Statistical
Commission (NSC) was set up in 2005 in order to oversee the entire
range of official statistics.
3. General Issues with Indian Statistics
1. Data sources are not available readily. Ex: Agricultural prices are
based on mandis or retail touch-points, where such data may not
be final. Non-availability of critical fiscal data such as the data on
pay and allowances.
2. Time lag issues.
3. Capacity Building of the human and organisational resources of
the statistical agencies have not improved since the 1980s.
4. Divergence in definitions and criteria of different indicators,
which are used by various agencies.
5. Large unorganised Sector. Lack of transparency and reliability
of fiscal data due to cash-based accounting.
6. Politicisation of data which has led to inflation and deflation of
statistics to suit one’s own performance. Ex: Divergence between
high growth and low jobs in India. Erosion of autonomy of
institutions. Senior officials of National Statistics Commission
 (NSC) resigned recently over the holding back of jobs data.
4. Rather than strive for speed in disseminating data on a more real-time
basis, it would be better to tarry and provide final numbers even if there
are lags involved. This would avoid the embarrassment of changing the
discourse or commentary when reacting to new numbers.

Cess

1. Cess is an additional levy, apart from normal taxes, over the total
amount for some specific objective.
2. Criticism of overuse of Cess
1. Already taxes in India are high. Additional such cesses leads to
tax terrorism on people. Once imposed they are revised, hiked and
shifted around, but seldom discontinued.
2. Use of cess is regressive in nature, as it is more like an indirect
tax. It also increases cost of doing business.
3. Use of instruments like cess and surcharge complicate the tax
structure encouraging the practice of tax evasion.
4. Revenue raised through a cess or surcharge is excluded from the
pool that is split between centre and states (Article 270) and thus
is against cooperative federalism.
5. The collections made through cess do not effectively translate into
matching outcomes. For example, road cess of 23,000 crore a year
is collected, yet matching improvement is not seen in road
infrastructure.
6. CAG has pointed out that there is inadequate transparency and
incomplete reporting in government accounts of the manner in
which the money is spent.
3. Way forward
1. Government should focus on expanding the tax base and
simplifying the tax structure to increase the revenues to fund new
initiatives.
2. Swacch Bharat cess lacks clarity on the institutional structure
under which resources are to be spent. For a cess to be effective it
is important to have a total clarity on how collected money will be
used. Imposition of cess for initiatives like Swacch Bharat takes
away the moral incentive and instead the focus should be on
imparting greater civic sense backed by grass root initiatives such
as door to door garbage collection.
[Link] economy, inclusive growth and Budgeting
Bank consolidation
1. Bank consolidation occurs when two or more banks become one bank, this
happens through either a takeover by a bank or via a mutual merger.
2. Pros
1. Larger banks may be more efficient and profitable than smaller ones and
generate economies of scale and scope. The efficiency gains may lead to
lower cost of providing services and higher quality.
2. There are significant overlaps between SBI and its associates. They
target similar client bases. Eliminating the overlaps will save cost and capital.
3. Increased capacity to meet corporate and infrastructure funding needs.
4. Larger banks can better cater to global needs and can penetrate towards
new markets with innovative products.
5. It will help in meeting BASEL-III norms.
6. It will end unhealthy and intense competition among the banks and will
reduce volume of inter-bank transactions.
3. Challenges
1. It may affect Government’s financial inclusion drive, as India needs
more banks.
2. India needs more banking competition than consolidation to improve
banking efficiency.
 3. Opposition by trade unions who may fear identity loss. It will result in
immediate job losses.
4. Larger banks may shift their portfolios towards higher risk return
investment. Thus, it may neglect local needs. Thus large banks lead to
consolidation of risks as well. Ex: Global financial crisis of 2007.
5. Most of the NPAs were accumulated due to inefficient functioning of the
PSBs. The weakness of the small banks may get transferred to large banks as
well.
6. Poor government record on mergers like in Air India and Indian Airlines.
4. Instead, clearing the NPAs, improving administration, increased
transparency in the working of PSBs would be a better way out in the current
situation.

5. How privatisation is better than consolidation

1. Mergers still mean that bad loans will remain on the books. Privatization
means that the low quality assets will be taken over by private party thus
easing Govt’s burden. It can also reduce burden on taxpayer and also the
fiscal deficit.
2. Privatisation would bring in market discipline and competition among
the banks which will force them to be aggressive and competitive, thus
making them take the path of growth.
3. Privatization means that staff and management also share some of the
risks borne out by shareholders. This is a good practice in itself. Their attitude
changes from rigid bureaucratic attitude.
4. Privatisation of banks that are unviable will bring resources that can be
utilised for supporting some of the banks with better prospect.
5. Acquisition of stressed banks by a bigger bank will create a still bigger
entity, but with poor health. This is a macroeconomic risk.
6. Why privatization isn’t advisable
1. It is not practicable. Govt will not get the support of unions, opposition,
etc.
2. Political will is lacking.
3. 2008 financial crisis was due to spurious lending leading to market
failure and thus government control is also necessary.
4. Until a bond market is developed, PSBs will be indispensable to funding
long gestation but important areas like mining, infrastructure, etc.
Privatisation will take away this leverage from Government.

Taxation
1. India has 7 taxpayers for every 100 voters ranking us 13th amongst 18
of our democratic G-20 peers. Tax to GDP ratio of India is low
16.6%. Fiscal democracy refers to the freedom of the elected
government to spend and tax so as to best serve the people at present,
instead of being tied down by expenditure commitments of the previous
governments.
2. Why is there low tax to GDP ratio
1. Low per capita income: Low average incomes and a high
poverty rate result in a very small portion of the labor force being
eligible to pay personal income taxes. Agricultural income is
untaxed in India.
2. Tax exemption: Populist measures like raising tax slabs in the
budget speech, which further narrows the tax base. As a result,
there is less tax buoyancy. Similarly tax expenditure is raising.
3. Tax evasions: Tax compliance in India is extremely low,
especially w.r.t. indirect taxes. High volume of transactions in
cash leads to no paper trails, making it easier for people to evade
taxes.
4. Tax disputes: India has one of the highest numbers of disputes
between tax administration and taxpayers. For example the
Vodafone tax dispute involving Rs 20000 crore lingering since
2008.
5. Loop holes in DTAA: Provisions for tax exemption from short
term capital gains are often misused by companies to re-route
their investments from such countries.
6. Informal market ecosystems: Informal sectors like Kirana
stores, stationery shops, etc. evade taxation.
3. Measures
1. Improving compliance: GAAR provisions may be useful in
dealing with tax evasions where tax benefits exceed Rs 3 crore.
2. Aadhar seeding: Mandatory seeding of bank accounts with PAN,
stringent KYC norms and Aadhaar seeding for easy traceability.
Project INSIGHT, SAKSHAM etc in order to leverage technology
and nab tax evaders.
3. Fixing loopholes in DTAA: Renegotiating double tax avoidance
treaties which are frequently misused to evade tax. Recent
amendments in Mauritius double tax avoidance agreement is a
 case in point.
4. Phasing out tax exemptions: Tax exemptions to be reviewed and
phased out. Reasonable taxation of the better-off, regardless of
where they get their income from industry, services, real estate, or
agriculture.
5. Property taxation: They are not only progressive and buoyant
but also difficult to evade since they are imposed on a non-mobile
good, which can with today’s technologies, be relatively easily
identified.
6. Fast tracking of tax disputes: Reducing discretion of taxman
and creating a predictable dispute resolution mechanism.
7. Shome Panel: Recommendations of Parthasarathy Shome panel
for simplifying the tax laws need to be considered.
8. Formal Jobs: Revamping labour laws and improving Ease of
Doing Business to increase formal sector jobs and thus the tax
base.
9. Government has to reduce corruption. By reducing corruption,
more citizens believe that public resources are not wasted, the
greater their willingness to pay taxes.
4. Observations made by TARC
1. The current organisational setup has the Revenue Secretary at the
top of the tax administration, above CBDT and CBEC. The
revenue secretary is not a tax expert, yet he has the final say in
terms of tax administration before it reaches the Finance Minister.
2. There is an artificial separation between direct and indirect tax
administration, and lack of cooperation between CBDT and
CBEC.
3. India has one of the highest numbers of disputes between tax
administration and taxpayers, with lowest proportion of recovery
of tax arrears.
4. The selection of CBDT and CBEC members does not consider
specialisation, policy experience, etc. and is based on seniority.
5. There is pressure on tax officers to meet externally imposed
revenue targets. In addition, there is a lack of protection for tax
officers from the large number of anonymous vigilance
complaints.
6. There is complete absence of research based analysis of policy,
 and lack of impact assessment studies. The benefits of ICT
systems have not been reaped.
5. Lack of fiscal democracy in India
1. Government utilises public funds for fulfilling short term goals,
populist measures etc and doesn’t go for capital asset building and
long term benefits.
2. Populist measures such as lower taxes and more exemptions also
lead to reduced revenues, hampering fiscal democracy.
3. Lack of devolution of funds at the lowest level like Panchayats.
4. Funds allotted to various government departments for welfare
remained unspent due to lax attitude of political leadership and
officials.
5. India always remained a fiscal deficit nation it shows the govt
functions on borrowing which in turn reflects towards debt of the
future generations.
6. Lack of proper financial inclusion.
6. Western democracies have had a much longer period of political
evolution allowing them to build state capacity where as India has had
only 7 decades to develop fiscal capacity. This is one of the reasons for
low fiscal capacity of India.

Goods and services tax

1. Parliament recently passed GST bill to bring an overhaul in India’s

indirect taxation regime.
2. What
1. The Goods and Services Tax (GST) is an indirect tax that would
replace all the existing indirect taxes such as excise duty, service
tax and value added tax (VAT), central sales tax, state level sales
tax etc.
2. Both the centre and state governments will impose tax with
various slabs on all goods and services produced within the
country.
3. Goods and services tax (GST) aims at bringing uniformity in the
structure, avoid multiple taxing system and widen the tax base.
4. GST will not include exports and direct taxes.
3. Economic benefits
1. GST will increase GDP growth by 1.0 to 1.5 percent which will
lead to a revival of the investment cycle and improvement in the
government’s tax buoyancy.
2. A national unified market will be established. This will
significantly lower transit time and also improve truck utilisation.
3. It is estimated that India will gain $15 billion a year by
implementing the GST as it would promote exports, raise
employment and boost growth.
4. Furthering ‘Make in India’ by eliminating bias in favour of
imports. It will make domestic tax levied on imports more
effective and less leaky, which will make domestic goods more
competitive.
5. GST will remove cascading taxes like CST. Thus it will be
conducive to combating inflation.
6. The Economist has reported that India’s long distance truckers are
parked 60 percent of the time. This also leads to delaying of
delivery of goods at destinations. The abolition of entry tax will
be a great boon for the movement of goods by road transport.
4. Governance benefits
1. GST will simplify India’s tax structure, broaden tax base by
increased compliance by citizens and traders. Thus Government
can check tax evasion. Between June and July 2017, 6.6 lakh new
agents previously outside the tax net have sought GST
registration.
2. Nearly all domestic indirect tax decisions to be taken jointly by
Centre and states through GST council. This furthers cooperative
federalism.
3. Under GST, taxation burden will be divided equitably between
manufacturing and services, through a lower tax rate by increasing
the tax base and minimising exemptions. Also distinction between
services and goods will go.
4. At present, the invoices are more detailed since taxes on goods
and services are written separately for one transaction. With the
introduction of GST only one rate will be written.
5. Reduced tax disputes. It is expected to build a transparent and
corruption free tax administration.
5. Other benefits
1. Textile and clothing sector is now fully part of the tax net.
Previously, some parts of the value chain, especially fabrics, were
outside the tax net, leading to informalisation and evasion.
2. Similarly, one segment of land and real estate transactions has
been brought into the tax net. This in turn would allow for greater
transparency and formalisation of cement, steel, and other sales,
which tended to be outside the tax net.
3. GST will rectify the inadequacies of the previous system of
domestic taxes levied on imports—the countervailing duty to
offset the excise tax.
4. The longer-term benefits include the GST’s impact on financial
inclusion. Small businesses can build up a real time track record
of tax payments digitally, and this can be used by lending
institutions for credit rating and lending purposes.
6. Concerns
1. High manufacturing states like Maharashtra, Gujarat, Tamil Nadu
may face downfall in tax collections in the short term.
2. Petroleum and liquor still out of GST. They form almost 40% of
India’s total trade, so significant portion is still outside.
3. Keeping health and education completely out is inconsistent with
equity because these are services consumed disproportionately by
the rich.
4. The tax on gold and jewellery products, items that are
disproportionately consumed by the very rich, at 3 percent is still
low.
5. Financial autonomy of states would be affected as states would no
longer have the independence to introduce taxes as per their
wishes. Concurrency of GST council would be required for
introducing fresh taxes.
6. The revenue loss would be compensated for 5 years only. If states
fail to adapt even after 5 year then once again it would have to
depend on Center for financial aid.
7. There is no tax capping in the GST bill. Higher GST tax will
nullify the benefits enjoyed by the GST.
8. Poor and people in unorganised sector likely to be affected the
most. States would no longer be able to keep them out of the
 ambit based on SECC criteria.
9. GST Dispute Settlement Authority is not included in the Bill. This
is a serious lacuna that must be filled. GST council may not be
able to deal objectively due to political contingencies. Tax
redressal mechanisms are quite poor. State commision or tribunals
are yet to be established and defined.
10. Initially, GST may actually increase the burden of indirect taxes
on consumers.
7. Problems in implementation
1. Improving coordination between state and central machinery so as
to effectively implement the tax regime.
2. Need for political consensus across the spectrum so that GST isn’t
subject to partisan forces.
3. Online filing of returns require extensive network penetration
which pose challenges in areas where connectivity infrastructure
is in bad shape.
4. One state with one vote without size of contribution create
dissatisfaction.
5. States virtually have no taxing power which could make state
dependent on center and unable to raise tax in some kind of
emergency.
6. Local bodies left untouched. Third tier governance not even
mentioned in the bill.
7. New form of litigation might evolve as many provisions are open
ended and vague. Thus, might put a stress on judicial system.
8. Large scale restructuring of departments, institutions, ministries
has to be done to absorb GST provisions. Any delay would result
in delay in overall implementation. This capacity building would
put financial stress on many states.
8. How GST differs from current regime
1. Cascading effect of taxation was present in previous tax regimes
which inflated the tax rate. The tax burden will be distributed and
not be more on the end consumer.
2. Multiple taxes earlier when compared to single uniform tax in
GST.
3. Services and Manufacturing will be taxed at uniform rates in GST
which will remove confusion arising out of definitions.
 4. The producer states gained more than the consumer states and
there is no possibility to have one market for every good and
service. This will change.
5. The tax net will be such that the tax is less but the products and
services under its ambit will become more.
9. Issues out of GST council
1. The recommendations made by GST Council will be judged by
the council itself which would be unfair and against the principles
of natural justice which states a party to a dispute should not judge
its own cause.
2. Decisions are to be made via voting where final decision would
require 3/4th votes. The Centre has 1/3rd of this share while states
have the rest giving the veto power over key decisions to the
centre.
3. Absence of a judicial member to resolve legal matters is not fair
and States at loss may feel cheated and go to courts.
4. The very legitimacy of Dispute Resolution mechanism would be
under a scanner if States have to move to courts often and DRM
would be eventually struck down in judicial review.

Inclusive growth

PMJDY

1. The government decided to make the Pradhan Mantri Jan Dhan Yojana
 (PMJDY) an open-ended scheme, meaning that it will continue
indefinitely. It is a financial inclusion program of Government of India
that aims to expand and make affordable access to financial services
such as bank accounts, remittances, etc.
2. Significance
1. Helped in financial inclusion: As per the Global Findex
Database, almost 80% of adult Indians now have bank accounts.
Financial inclusion has taken place in three ways. Financialisation
of savings by giving lower income households access to a safe
investment product. Diversification of financial products with
increasing enrolments for the low-cost accident insurance cover
and Transition to electronic payments.
2. Improved balance sheets of banks: Falling percentage of zero
balance accounts from 58% in 2015 to 15% in 2019.
3. Helped in inclusive growth: Of 35.70 crore account holders,
around 18.88 crore account holders are women.
4. Direct benefit transfer (DBT).
5. Plugging leakages from Subsidy: According to the Economic
Survey, leakages in LPG subsidy transfers fell 24% and the
exclusion of beneficiaries had been greatly reduced, due to
banking infrastructure created by the combination named as JAM
trinity.
3. Challenges
1. Dependency on unsecured debt: Access to bank accounts has
not reduced the impact on private moneylenders.
2. Internet connectivity issues: The inadequate infrastructure base
for internet facilities basically in tribal and hilly areas make it
difficult for Business Correspondents to deliver the required basic
banking services.
3. Funds for Overdraft Facility: Clarity has still not emerged on
where the funds would be diverted from to finance the overdraft
facility.
4. Increasing Cost of Business Correspondents: If these accounts
have to be functional and not remain dormant then the density of
banking correspondent has to be increased, which will increase
the cost of delivering the banking services.
5. Tackling Unaccounted Money Deposited During
 Demonetisation: After the announcement of Demonetization total
deposits in 255 million Jan Dhan accounts have increased to Rs
642521 million by November 2016.
4. With the high deposits in the banks, the Government must nudge the
banks to offer much-needed loan products to the account holders.
Allowing them to build up a credit and transaction history in the
banking system is critical to wean them away from the grip of informal
money lenders.

Universal Basic income (UBI)

1. A basic income is an income unconditionally granted to all on an

individual basis, without work requirement. The Union government has
recently mooted the idea of UBI for BPL Indian citizens. Sikkim will be
the first state in India to roll out the UBI.
2. Two basic pre-requisites
1. Functional JAM (Jan Dhan, Aadhar and Mobile) system as it
ensures that the cash transfer goes directly into the account of a
beneficiary.
2. Centre-State negotiations on cost sharing.
3. Characteristics of UBI
1. Periodic (being paid at regular intervals, not lump sum).
2. Cash payment (not in kind or vouchers, leaving it on the recipient
to spend it as they like).
3. Individual (not to households or families).
4. Universal (for all).
5. Unconditional (irrespective of income or prospects of job).
4. Economic advantages
1. According to Tendulkar commitee, still 30% of Indians fall in
poverty net. UBI can reduce poverty in one fell swoop. This
income floor will provide a safety net against health, income and
other shocks.
2. It is universal and not targeted. This will remove exclusion errors
and will reduce the administrative burden on the state. This
improves efficiency in our welfare schemes.
 3. Another important feature is cash transfer in lieu of in-kind
transfer. Cash transfers are supposed to be much less market
distorting than in-kind transfers.
4. This will encourage greater usage of bank accounts, leading to
higher profits for banking correspondents (BC) and an
improvement in financial inclusion.
5. Social prosperity
1. UBI is premised on the idea that a just society needs to guarantee
minimum income for a dignified life with access to basic goods.
Thus social justice can be ushered in. It promotes liberty because
it is anti-paternalistic, opens up the possibility of flexibility in
labour markets. It promotes equality by reducing poverty.
2. UBI can make a citizen move away from being a subject of
government welfare programme to agents of its own change.
6. Arguments against
1. It would reduce the motivation for work and might encourage
people to live off assured cash transfers.
2. Arriving at an acceptable and decent UBI would be tough for
economists. A vast section of the population is in the BPL
category, surviving on Rs.50 a day.
3. It is simply unaffordable. An estimate puts, it would entail a cost
of 11% of GDP, which is way above the 4.2% of GDP that the
government currently spends on explicit subsidies.
4. There is an apprehension that the amount would be used
wastefully by the poor especially on injurious products like
alcohol and other adulterated substances leading to social stress.
5. It is also argued that unconditional cash transfers might raise
wages due to the decline in the supply of casual labourers.
6. Gender norms may regulate the sharing of UBI within a
household. Men are likely to exercise control over spending of the
UBI. This may not always be the case with other in-kind transfers.
7. Infrastructure for cash transfer and means to withdraw same in
remote areas. Scaling up of banking infrastructure is required
before such a scheme gets approved.
8. There is also question of whether a shift towards it should be a
substitute for all existing subsidies or whether it should
complement the existing ones.
 9. None of the places where UBI has been tried have levels of
income disparity that exist in India. So, while the idea might work
in Sikkim, it might not in, say, Bihar.
7. Solutions
1. UBI should be made universal first across easily identifiable
vulnerable groups like widows, old, pregnant women etc. The
challenge to this may be of absence of bank accounts with them.
2. Centre can run a pilot UBI programme to transfer, a part of the
redistributive resources to the poorer states, directly in the
beneficiaries bank account as UBI. The challenge is of the limited
capacities of these states.
3. Define the non-deserving based on ownership of key assets such
as automobiles etc and SECC data. Adopt a Give it up scheme to
enable well off to opt out. List of UBI beneficiaries should be
publicly displayed which would name and shame the rich who
avail UBI benefits.
4. Linking it with learning of skills or with some work, will give
desired result and people will be motivated to learn skill and work,
so that they can get UBI.
5. Government service delivery is under revolution, due to role of
technology. Similar to DBT, this could be transferred to
beneficiaries and an implementing body should look after it.
6. UBI can achieve the outcomes Mahatma Gandhi so deeply cared
about and fought for all his life. UBI may not be ripe for
implementation but merits serious discussion.
8. UBI can wipe out every tear from eye as Gandhiji envisaged. But it is
simply unaffordable for the Government at the present time.

Foreign exchange swap

Apparel industry

1. According to economic survey 2016, Apparels and leather sector is

most promising in terms of job creation and export and can thus push
the India’s growth trajectory. India also exports less apparel in absolute
value than Vietnam, which is less than one-tenth of India in terms of
both population and GDP.
2. Important attributes of the industry
1. Social transformation: Boost to women employment as it
requires no special technical training, can be operated from home,
education or literacy level of women is not a barrier and their
natural creative skills. Also 3/4th of total production is done by
MSME which would lead to inclusive growth.
2. High employment: The industry has an appetite for creating 1.5
million jobs annually and is much attractive in terms of jobs
created relative to investment.
3. Decrease in competition: Rising wage levels in China has led to
decrease in its market share and provides opening to India’s low
wage competitive cost structure.
4. Boost forex: Even though marred by under performance the
exports are growing at 20% in apparel, and 25% in leather goods.
5. Abundance of raw materials: Largest bovine population, with
 1/10th of world’s goat and sheep.
3. Challenges
1. Logistics: The costs and time involved in getting goods from
factory to destination are greater than those for other countries.
The overarching Coastal Employment Zones (CEZs) will help
improve export logistics in India.
2. Labour regulations: There are strict regulations for overtime
wage payment as the Minimum Wages Act, 1948, mandates
payment of overtime wages at twice the rate of ordinary rates of
wages of the worker. Centre needs to work with states on
reforming labour regulations.
3. Tariff policy: High domestic taxes on man made fabrics vis-a-vis
cotton based fabrics. Expensive raw material and transaction costs
(high excise and custom duties) made this sector more unviable.
Long staple cotton imported from Uganda, Egypt etc are very
expensive.
4. Discrimination in export markets: India’s competitors enjoy
better market access by way of zero or at least lower tariffs in
USA and EU. For example, in the EU, Bangladesh exports enter
mostly duty free, while Indian exports of apparels face 9.1 percent
tariff.
5. Lack of finances: Inadequate credit availability has dried the
production and export capacity of power looms.
6. International trading: The global demand for footwear is
shifting away from leather footwear and towards non-leather
footwear.
7. Cotton export: Cotton corp of India exported good quality cotton
abroad at prices higher than international market that may have
led to instant profits but ultimately made Indians lose their textile
market.
8. High MSP: MSP for cotton was too high which further made the
Indian textile sector unviable.
4. Initiatives taken by Govt
1. Government approved Rs. 6,000 crore special package for textile
& apparel sector to boost employment creation, exports and
investment.
 2. The subsidy under Amended Technology Upgradation Fund
Scheme (ATUFS) was increased from 15% to 25% for the
garment sector. A unique feature of the scheme is to disburse the
subsidy only after the expected jobs are created.
3. Under the Market Development Assistance (MDA) Scheme,
financial assistance is provided for a range of export promotion
activities implemented by Textiles Export Promotion Councils.
4. The Ministry of Textiles has signed memorandum of
understanding (MoU) with 20 e-commerce companies, aimed at
providing a platform to artisans and weavers in different
handloom.
5. The Government has started promotion of its India Handloom
initiative on social media like Facebook, etc., to promote high
quality handloom products.
6. Negotiations are on the way for new FTAs with the European
Union (EU) and the United Kingdom (UK).
7. Introduction of the GST offers an excellent opportunity to
rationalise domestic indirect taxes so that they do not discriminate
in the case of man-made apparels.
8. Number of labour reforms are implemented to overcome obstacles
to employment creation in these sectors.

Skill development

1. An abysmally low level of skilled workers is acting as a major

impediment in the development of the Indian economy. While all major
economics such as Germany, US and South Korea have high level of
skilled labor force, this has not been possible in India.
2. Reasons for low skilled force
1. There is an inadequate skills training capacity in our existing
training institutes.
2. Even if there are few vocational training institute, there is wide
variation in quality among them.
3. High school dropout rates is one of the most significant cause for
abysmal level of formally skilled workers. This owes it existence
to socio-economic conditions of a family.
 4. One of the main causes of this problem is lack of industry ready
skills even in professional courses, which compel industries to not
employ people even with good degrees. This exists because of
lack of Industry-Academia collaboration.
5. A large section of workforce, in rural areas, engage in agricultural
sector. The lack of agriculture related reforms renders this section
to work in informal sectors.
3. Government steps
1. A dedicated department of Skill Development and
Entrepreneurship has been created under the Ministry of skill
development to accord focused attention towards skilling the
youth.
2. The Deen Dayal Upadhyaya Grameen Kaushalya Yojana
(DDUGKY) is a placement linked skill development scheme for
poor rural youth. Moreover, it laid greater emphasis on projects
for poor rural youth in Jammu and Kashmir (HIMAYAT), the
North-east region and 27 Left-wing districts (LWE) districts
(ROSHINI).
3. For bringing minorities into mainstream development, Nai
Manzil, a program for education and skill development of
dropouts, has been started. MANAS for upgrading entrepreneurial
skills of minority youths.
4. USTTAD has been started to conserve traditional arts and
building capacity of traditional artisans and craftsmen belonging
to minority communities has also been introduced.
5. Nai Roshni, a leadership training programme for women which
focusses on equipping women with knowledge, tools and
techniques to interact with government systems, banks and
intermediaries.
6. Increased allocations of Rs. 4,500 crore to the Deendayal
Antyodaya Yojana - National Rural Livelihood to create self
employment opportunities.
7. Government has launched Skill Acquisition and Knowledge
Awareness for Livelihood Promotion Programme (SANKALP).
8. Pradhan Mantri YUVA Yojana will provide entrepreneurship
education and training to over 7 lakh educated students in 5 years
through 3050 Institutes.
 9. Government has laid down the foundation stone of Indian Institute
of Skills inspired by Singapore model of training. The Institute
would adopt various best practices from the country.
10. Skill India Mission Operation (SIMO) is a World Bank assisted
national level project. It targets at training of 400 million Indian
people between 2017 and 2022 through with special emphasis on
reaching women, poor and other excluded communities.
11. In order to provide a platform to fresher in job market there is
launch of Apprenticeship training and increase the engagement of
apprentices from present 2.3 lakh to 50 lakh cumulatively by
2020.
12. Adoption of National Skills Qualifications Framework (NSQF). It
integrates vocational with formal education by introducing
vocational training classes linked to the local economy from class
nine onwards in at least 25% of the schools, over the next five
years.
13. Recognition of Prior Learning (RPL) framework is an outcome
based qualification framework linked to NSQF against which
prior learning through formal/informal channels would be
assessed and certified.
14. In order to make India the human resource capital of the world,
the government has set up 50 global skill banks (training centres)
to train potential immigrant workers in 110 job roles as per
international standards.
4. Issues with skill development schemes
1. Poor accreditation process: The Quality Council of India (QCI)
has often compromised with the quality of accreditation and
affiliation process.
2. Multiplicity of norms, procedures: Policies and initiatives
related to skill development are spread across nearly 20 ministries
and hence lacks coherency and holistic approach.
3. Many skill development schemes are in non-alignment with the
demand, due to lack of relevant data and studies.
4. There is non-availability of good trainers.
5. Success of schemes is mainly judged by whether input and output
targets are met, numbers enrolled and numbers of trainees
certified.
 6. There are no central checks to verify whether the placements
reported are accurate, no monitoring system to see what wages are
earned or whether jobs are commensurate with training and
aspirations.
7. Some beneficiaries get multiple benefits for undergoing same type
of training, while others don’t get opportunities.
8. Concerns with educational, vocational and professional academic
bodies.
5. Features of new skill development scheme
1. The emphasis is to skill the youths in such a way so that they get
employment and also improve entrepreneurship.
2. It provides training and support for all occupations that were of
traditional type like carpenters, cobblers, welders, blacksmiths,
masons, nurses, tailors, weavers etc.
3. More emphasis will be given on new areas like real estate,
construction, transportation, textile,, where skill development is
inadequate or nil.
4. The training programmes would be on the lines of international
level to meet the labour demands of US, Japan, China, Germany,
etc.
5. The new ministry will be the certifying agency. Certificates will
be issued to those who complete a particular skill or programme
and this certificate has to be recognised by all public and private
agencies.
6. Tailor made, need based programmes would be initiated for
specific age groups which can be like language and
communication skills, life and positive thinking skills, personality
development skills, behavioural skills, including job and
employability skills.
6. PMKSY

7. Challenges in creating new jobs

1. Of the 10.5 million new manufacturing jobs created between 1989
 and 2010, only 3.7 million were in the formal sector. The slow
pace of labour reform has encouraged firms to resort to hiring of
contract workers.
2. Contract workers in India have increased from 12 percent of all
registered manufacturing workers in 1999 to over 25 percent in
2010.
3. States are under pressure to be seen as attractive destinations for
investments that will create jobs. There may be a possibility of
competitive federalism becoming too competitive into giving too
many concessions.
4. Apparel industry’s input costs include 30 percent from wages and
only 2-3 percent are capital intensive inputs like power. Despite
this, India is ceding market share to countries like Bangladesh and
Vietnam.
5. A new business model of relocating apparel industry to second
and third-tier towns. This model of moving factories to workers
has a number of commercial and social advantages.
8. Disadvantages of hiring contract labour
1. Hiring workers through a contractor can be more expensive.
2. Contract workers do not feel as much loyalty to the company as
regular workers.
3. It also reduces the employers incentive to invest in their training.
4. It hurts a firm’s future productivity as contract workers do not
accumulate firm-specific human capital.
9. Significance of SC ruling giving temporary employees equal pay
1. Purchasing power: The purchasing power of the employees will
increase pumping more liquidity in the economy.
2. Motivation: Equal pay will motivate the temporary employees to
upgrade their skills on a regular basis.
3. Labour cost: This will increase the cost of labour. This in turn
might enhance the work stress on permanent workers. India might
lose its attraction for its cheap labor and might reduce the number
of outsourced jobs to India.
4. Formalisation of labour: This will enhance workers in formal
employment and so the tax base will be enhanced significantly.
5. A push to DPSP: It promotes constitutional provision of equality
 in Article 39 (d) of DPSP, that is equal pay for equal work.
6. Sends a good message: This would also send a message to the
private enterprises to take notice of the government following the
practice of considering employees both temporary and regular on
equal pay scales and implement for itself in future.
10. National Apprenticeship Promotion Scheme
1. The cabinet has given approval for National Apprenticeship
Promotion Scheme (NAPS). NAPS has been framed to meet
objective of National Policy of Skill Development and
Entrepreneurship, 2015, which focuses on apprenticeship as one
of the key components.
2. Union Government will directly share, 25% of the total stipend
payable and 50% of total expenditure for providing basic training
to an apprentice, with employers.
3. It will be implemented by Director General of Training (DGT)
under the aegis of Union Ministry of Skill Development and
Entrepreneurship (MSDE).
4. For MSME sector, this scheme will encourage third party
agencies to provide basic training when in-house training
infrastructure is not available.
5. Act has dismantled the outdated system of trade wise and unit
wise regulation of apprentices under a prescriptive regime. Now
the minimum target of apprentices is 2.5% and maximum is 10%.
11. Significance
1. India has less than 3 lakh apprentices. This is a small proportion
of over a crore people annually joining labour force of 48 crore
workers.
2. It substantially improves the employability of youth and market
value as well as their capability to become self employed.
3. The industry will benefit from enhanced skills, higher
productivity and better professionalism once apprentices join the
workforce.
4. Among a large number of skilling schemes, the efficacy of
apprenticeship system is the highest.
5. NAPS is a part of labour reforms. Government has already
amended Factory act, Apprenticeship act and labour laws act in
2014.
 12. It is estimated that the demographic dividend is expected to last for 25
years. Thus, to reap the benefits of this one-off opportunity India needs
to significantly scale up its skill development initiatives.

Transforming aspirational districts

1. The Aspirational Districts Programme (ADP) was launched in 2018.

Under phase-1 of ADP, 115 districts were identified based on the level
of human development, physical infrastructure, threat of left wing
extremism (LWE) and the views of state governments.
2. The main aim is to achieve balanced development in India by uplifting
115 districts, currently below the national average in the areas of health
and nutrition, education, agriculture and water resources, financial
inclusion and skill development, and basic infrastructure.
3. A list of 49 target indicators has been developed by NITI Aayog. These
will be regularly monitored for promoting improvements in health and
nutrition, education, agriculture and water resources, financial inclusion
and skill development, and basic infrastructure.
4. Constraints
1. The constraints impeding the development of these districts are
institutional.
2. Non-availability of periodical data makes it difficult to track
progress and implement evidence-based policymaking.
3. There is lack of social awareness and community participation in
development programmes.
4. There is lack of competitiveness among districtsto improve
developmental performance.
5. Governance inadequacy hampers the effective implementation of
government schemes. There is no accountability on the part of
either the government or district administrations.
6. The institutional framework has been fragmented because of the
multiplicity of implementing agencies and schemes.
5. Way forward
1. Make development a mass movement. Referring to these districts
as ‘aspirational’ rather than ‘backward’ recognises that people are
the most valuable resource.
2. Use data to inform decision making and spur competition among
 districts.
3. Converge initiatives across all levels of government.
4. Promote federalism and put in place institutional mechanisms to
ensure teamwork between the central, state and district
administration.
5. Partner with expert organizations with demonstrated technical
competence.

Spatial development

1. Spatial development means that industries and services are concentrated

in high density economically developed area and engines of growth
have failed to spread to less dense secondary cities.
2. Uneven spatial development can be seen both in manufacturing as well
as services sector. Unlike in China, Europe and the US, where the
engines of growth and job creation have spread to the secondary cities,
in India medium-sized cities remain mired in joblessness and
poverty. India’s manufacturing sector is spatially spreading at a much
faster pace than the services sector. The low density manufacturing
districts are growing at a much faster pace than high-density districts in
India.
3. A report from the rating agency Crisil found that the inter-State
disparities have widened in recent years even as the larger economy
grows in size. Many low income States have experienced isolated years
of strong economic growth above the national average.
4. Bihar was the fastest growing State this year. But they have still failed
to bridge their widening gap with the richer States since they have
simply not been able to maintain a healthy growth rate over a sustained
period of time.
5. Reasons for uneven spatial development
1. Historically, regional imbalances in India started from its British
regime. The British rulers as well as industrialists started to
develop only those earmarked regions of the country which as per
their own interests.
2. Geographical factors play an important role. The difficult terrain
surrounded by hills, dense forests leads to increase in the cost of
administration, and thus are usually ignored. Plain areas with
 availability of river waters are preferred destination for
industrialists.
3. Economic overheads like transport and communication facilities,
power, technology, banking and insurance etc., are considered
very important for the development of a particular region.
4. Failure of economic planning etc.
5. Manufacturing sector has not spread to all districts. Only those
districts that have improved their physical and human
infrastructure have attracted manufacturing enterprises. While
large manufacturing enterprises are moving away from more
congested megacities into secondary cities, this is not happening
at a faster pace to create more jobs.
6. High density service clusters have continued to grow at a much
faster pace than less dense areas and more dense locations have
become more concentrated over time.

Investment rate in India

1. Investment denotes gross capital formation (GCF) and is one of the

principal growth engines of an economy. Investment rate in India has
gradually declined from 38% to 27% over the last decade. It is the
private corporate investment that is responsible for most of the decline
in total investment.
2. Reasons for decline
1. The onset of financial crisis in 2008 had disrupted the investment
decisions. Many world economies are still struggling with its after
effects.
2. Indian economy has been suffering from twin balance sheet
syndrome since 2012, where the ongoing projects are stalled and
bankers balance sheet is stressed, leading to rising NPAs and
declining credit off-take.
3. High rate of interests because of high inflation during 2010-13
period also led to delaying of investment decisions. Even though
inflation has subsided, investors have remained wary.
4. Litigations in the PPP projects have also discouraged investments.
5. Unfavourable perception about risks and expected returns, for
example retrospective taxation laws create an environment
 of uncertainty.
6. Insufficient allocation of resources towards technological
advancement and logistics has hampered new investments.
7. Slow roll out of land and labour reforms.
8. Household savings and investment rates have been falling.
3. Changes
1. Quick recognition and resolution of NPAs, in order to address the
“Twin Balance Sheet problem”.
2. Recapitalisation of PSBs to recoup their credit making
capabilities.
3. Time bound resolution of insolvency cases, as envisioned and
mandated by the Insolvency and Bankruptcy Code
4. Capacity building and adoption of fixed deadlines for
implementation of further changes in the GST programme.
5. Speedy labour and land reforms to further improve ease of doing
business. A predictable and stable taxation regime, which gives
investors a clearer vision to make decisions.
6. Increase public investment in infrastructure sector, creating
employment. This would pull in private investment, while
increasing money supply at the same time.
7. Make appropriate changes in investment models to make
investment attractive for investors, like HAM model.
8. Renegotiate the PPP projects according to the existing situation,
thereby building confidence among investors.
4. Raising investment rates to 36 per cent by 2022-23
1. To raise the rate of investment (gross fixed capital formation as a
share of GDP) from about 29 percent in 2017-18 to about 36
percent of GDP by 2022-23.
2. To enhance public investment, India should aim to increase its
tax-GDP ratio to at least 22 per cent of GDP by 2022- 23.
Demonetization and GST will contribute positively to this critical
effort. In addition, efforts need to be made to rationalise
direct taxes for both corporate tax and personal income tax.
Simultaneously, there is a need to ease the tax compliance burden
and eliminate direct interface between taxpayers and tax officials
using technology.
 3. States could also undertake greater mobilization of own taxes
such as property tax, and taking specific steps to improve
administration of GST to increase tax collections.
4. Two areas in which higher public investment will easily be
absorbed are housing and infrastructure. Investment in housing,
especially in urban areas, will create very large multiplier effects
in the economy. Private investment needs be encouraged in
infrastructure through a renewed public-private partnership (PPP)
mechanism on the lines suggested by the Kelkar Committee.
5. By 2022-23, the government may consider further liberalizing
FDI norms across sectors. Domestic savings can be complemented
by attracting foreign investment in bonds and government
securities.
6. The government should continue to exit central public sector
enterprises (CPSEs) that are not strategic in nature.
5. Focus on exports and manufacturing
1. A focused effort on making the logistics sector more efficient is
needed.
2. Power tariff structures may be rationalized to ensure global
competitiveness of Indian industries.
3. Import tariffs that seek to promote indigenous industry should
come with measures to raise productivity which will provide the
ability to compete globally.
4. Improve connectivity by accelerating the completion of
announced infrastructure projects. We should complete projects
that are already underway such as the Delhi-Mumbai Industrial
Corridor (DMIC) and Dedicated Freight Corridors.
5. Work with states to ease labour and land regulations. In particular,
we should introduce flexibility in labour provisions across
sectors.
6. The government has recently established a dedicated fund of INR
5,000 crore for enhancing 12 “Champion Services
Sectors”. Among others, these include IT & ITeS, tourism,
medical value travel and audio visual services.
7. Strengthen the governance and technical capabilities of Export
Promotion Councils (EPCs) by subjecting them to a well-defined,
performance-based evaluation.
 8. Explore closer economic integration within South Asia and the
emerging economies of South East Asia.
6. Steps like Make in India, initiatives for quick approvals and clearances,
FDI reforms and strengthening bond market for long term financing
will further improve investment rate in India. In the long run, it is
imperative to create a clear, transparent, and stable tax and regulatory
environment to revive and boost investments.

Credit rating agencies (CRA)

Corporate governance
[Link], marketting, food security and food
processing
Budget 2019-20

Examples

1. Mission Kakatiya -- Restoring minor irrigation sources of water with

community participation. Pani Panchayat -- Orissa.
2. Traditional irrigation techniques such as Tankas, khadins, vav, ahar
pynes are significant in areas such as arid and semi-arid regions.
Modernising Agriculture

1. The existing yield levels of a majority of crops remains much lower

than the world average.
2. Current situation
1. Staple crops (cereals, pulses and oilseeds) occupy 77 percent of
the total gross cropped area (GCA) but contribute only 41 percent
to the output of the crop sector. High value crops (HVCs)
contribute an almost similar amount to total output as staples do,
but they occupy only 19 per cent of the GCA.
2. Low irrigation. Close to 53 percent of cropped area is water
stressed. Rainwater management practices and services are
resource starved. This limits a farmer’s capacity to undertake
multiple cropping and leads to inefficient utilization of land
resources.
3. Low quality seeds.
4. Use of outdated and inappropriate technology is the main reason
for low productivity of crops and livestock. Knowledge deficit
about improved agricultural practices. Given the pre-dominance
of small and marginal farmers in Indian agriculture, affordability
becomes a significant constraint on technology adoption by
farmers.
5. Inefficient extension delivery systems have led to the presence of
large yield gaps as well. Agricultural research in the country is
constrained by resource inadequacy, regulations and intellectual
property rights (IPR).
6. On-farm adoption of technology developed in public sector also
has many challenges.
3. Way forward
1. Increase area under irrigation.
2. Investment subsidies for micro-irrigation: Rather than power and
water subsidies, investment subsidies for micro-irrigation can be
provided through the DBT mode.
3. Increase adoption of hybrid and improved seeds. Strengthen seed
testing facilities.
4. Efficient fertilizer usage. The current lopsided fertilizer subsidy
policy needs to bring secondary and micronutrients on the same
 nutrient-based subsidy (NBS) platform as phosphorus (P) and
potash (K). Provide subsidies on liquid fertilizers. Targeted
subsidy should be provided on liquid fertilizers to encourage
fertigation with micro-irrigation. Regulate pesticide use.
5. Custom hiring centres: Madhya Pradesh has had demonstrable
success with their custom hiring centre model to hasten the pace
of farm mechanisation.
6. Strengthening extension systems: Public Private Partnership in
KVKs.
4. Diversification: Promotion of high value crops (HVCs)
1. Encourage diversification to HVCs: Design an incentive
mechanism to wean farmers away from cereal crops to HVCs.
2. Establish regional production belts: As in the cluster-based
approach, regional production belts for HVCs need to be
identified and supported through the Mission on Integrated
Development of Horticulture (MIDH).
3. Use of hybrid technology in vegetables.
4. Root stocks technology for production of fruits: Rootstock
technology has shown the capacity to double production and be
resilient to climate stress.
5. Smart horticulture: There have been pockets of success spread
throughout the country, using techniques such as high-density
plantation, protected cultivation and organic production.
6. Strengthen market for organic products: Targeted efforts to create
a market for niche products is recommended.

Policy and Governance in agriculture

1. Promote through government policies the emergence of ‘agripreneurs’

so that even small and marginal farmers can capture a higher share of
value addition from ‘farmgate to fork’.
2. Current situation
1. In the years post-independence, the policy structure was focused
on increased production and productivity to ensure food security
for India. However, to achieve the target of doubling farmers’
income by 2022-23, we need to shift our focus from agriculture to
 agri-business.
2. The current government has taken several steps to improve private
investment in agriculture. 100 percent foreign direct investment
(FDI) was allowed in 2016-17. Similarly, the SAMPADA scheme
targets creation of food processing infrastructure. The budget
allocation to the food processing sector was doubled in the Union
Budget 2018-19. Introduction of the Model APMC act, Model
Contract Farming Act, new guidelines for agro-forestry are some
other key policy initiatives taken over the past few years.
3. Constraints
1. Fragmented land holdings. This makes it difficult for them to
access credit or new technology, severely affecting farm
productivity.
2. Low price realisation. Prices also tend to fall below the minimum
support prices in a good production year, leading to agrarian
distress.
3. Non-farm employment.
4. Agricultural credit.
5. Agricultural trade. Exporters of agro-commodities are not
successful in raising their share in global markets.
4. Way forward
1. Marketing reforms: Model APMC provides for progressive
agricultural marketing reforms, including the setting up of markets
in the private sector, allowing direct sales to exporters/processors
and customers, farmer-consumer markets, e-trading, single point
levy of market fee, and the launch of the e-NAM.
2. Amend Essential Commodities Act: The Essential Commodities
Act, which has proven a disincentive to large investment in
agricultural technology and infrastructure, should be replaced with
a modern statute that balances the interests of farmers and
consumers.
3. Stable export policy.
4. Price realisation: Replacing the minimum support price (MSP)
by a minimum reserve price (MRP), which could be the starting
point for auctions at mandis. Raising MSP or prices can only be
a partial solution to the problem of assuring remunerative returns
to farmers. A long-term solution lies in the creation of a
 competitive, stable and unified national market to enable better
price discovery, and a long-term trade regime favourable to
exports.
5. Contract farming: Encourage states to adopt the Model Contract
Farming Act, 2018.
6. Land aggregation
1. Encourage states to adopt the Model Agriculture Land
Leasing Act, 2016: The Model Act aims to improve land
access to small and marginal farmers through land leasing,
whilst also providing for a mechanism for tenants to avail of
institutional credit.
2. Digitise land records: Complete digitiza- tion of land records
is a must for effective implementation of land leasing.
3. Promote farmer producer organizations (FPOs): There are
now 741 FPOs in the country, managed under the aegis of
Small Farmers Agribusiness Consortium (SFAC). They have
demonstrated that aggregating farmers can help achieve
economies of scale.
7. R&D
1. Focus on precision agriculture.
2. Create a knowledge hub to disseminate best practices.
8. Innovation
1. Several breakthroughs have the clear potential for quickly
doubling farmers’ income. One is the recorded success of
zero budget natural farming by Subhash Palekar. Rapid
progress has also been made in organic farming techniques,
which have also helped improve incomes of cultivators and
dairy farmers.
2. Two, there are patented herbal inputs that improve soil
quality and make plants more pest resistant.
9. Non-farm income
1. Create and nurture agripreneurs for achieving greater value
addition through agro-processing and propagation of modern
extension services.
5. We should transform agriculture from a way of life to an enterprise and
agricultural workers as agripreneurs.
Contract farming

1. Contract farming is the contractual arrangement between farmer and the

firm specifying one or more conditions of production and/or marketing
of an agricultural product.

2.
3. Advantages
1. Farmers have a guaranteed market outlet, reduce their uncertainty
regarding prices and often are supplied with loans in kind, through
the provision of farming inputs such as seeds and fertilizers.
2. Purchasing firms benefit from having a guaranteed supply of
agricultural products that meet their specifications regarding
quality, quantity and timing of delivery.
4. Challenges
1. Uneven nature of the business relationship between farmers and
their buyers. While contract farming appears to provide financial
security to farmers, it can also lead to greater insecurity as farmers
become dependent on these companies for their livelihoods.
2. On the supply side, the most important constraint has been the
scale of farm produce. 86% land holdings are less than 2
hectares. Buyers have no incentive for contract farming with a
large number of small and marginal farmers due to high
 transactions (ex. costs related to negotiation) and marketing costs
(ex. cost of collecting produce).
3. Further the problem is heterogeneity in quality of produce with a
large number of small farmers.
4. Contract farming caters primarily to the production of items which
requires high doses of fertilisers and pesticides, it is often not
ecologically sustainable.
5. Contract farming of export oriented products such as flowers
means that agricultural land is diverted away from food grains.
6. Contract farming makes indigenous knowledge of agriculture
irrelevant.
7. Another, and more widespread aspect of the globalisation of
agriculture is the entry of multinationals into this sector as sellers
of agricultural inputs such as seeds, pesticides, and fertilisers.
8. On the demand side, we have not allowed the big foreign retail
chains like Amazon, Tesco to invest in India (FDI in food retail
was opened in 2016). These retail chains have an efficient supply
chain and a successful business model running in other countries.
5. Model Contract farming act, 2018

1. Contract farming to remain outside the ambit of APMC act.

2. No right, title of interest of the land shall vest in the sponsor.
3. No permanent structure can be developed on farmers’
land/premises.
4. Setting up of a state level agency called “Contract Farming
(Development and Promotion) Authority” to popularise it among
the stakeholders.
5. Constitution of a “Registering and Agreement Recording
Committee” at district/block/taluka level for registration of contract
farming sponsor and recording of contract, so as to implement
effectively contract farming.
6. In addition to contract farming, services contracts all along the
value chain including pre-production, production and post-
production have been included.
7. Ensuring buying of entire pre-agreed quantity of one or more of
agricultural produce, livestock or its product of contract farming
producer as per contract.
 8. Enables production support, including extension services to the
contracting farmers or group of farmers through supply of quality
inputs.
9. Promoting Farmer Producer Organization (FPOs) / Farmer Producer
Companies (FPCs) to mobilise small and marginal farmers to
benefit from scales of economy in production.
10. Accessible and simple dispute settlement mechanism at the lowest
level possible provided for quick disposal of disputes.

ZBNF
 1. ZBNF has been practiced for over a decade at small scale level across
India. But in the recent times, it has been adopted at a much larger scale
in South India. Andhra Pradesh government in an effort to make
transition to 100% chemical free farming became the first state to adopt
ZBNF. However, few steps like scientific validation of ZBNF, scaling
up of investment, diverting existing subsidies away from chemical
fertilizers and strengthening the existing KVK network can help in
widespread adoption of ZBNF.
2. According to UN Environment, ZBNF also creates the social capital
necessary for vibrant and inclusive agricultural production, by
establishing farmers’ federations and SHGs, and placing farmers at the
forefront of knowledge creation and dissemination.

Organic farming

1. Organic farming is a form of agriculture that relies on techniques such

as crop rotation, green manure and biological pest control. Organic
farming aims to keep the soil alive and in good health by use of organic
wastes and other biological materials along with beneficial microbes to
release nutrients to crops for increased sustainable production in an eco-
friendly pollution free environment.
2. Advantages
1. Increased nutrient content in the food.
2. Free from poisonous content.
3. Better and organic taste.
4. Longer storage life.
5. Reduced costs for farmer.
6. Less resource utilisation. Ex: reduced water and fertiliser usage.
7. Minimising environmental degradation.
8. Reduced soil erosion.
3. Challenges
1. Lower productivity.
2. There is a serious shortage of good quality organic inputs, which
 increases the risk of loss of yield.
3. Supply chain is underdeveloped and small and mid-sized farmers
located in hilly regions and tribal belts find it extremely difficult
to access the market.
4. There is a shortage of pack houses and refrigerated vehicles,
which leads to spoilage. Organic products have to be stored
separately from conventional products to avoid cross-
contamination and the existing supply chain does not often
provide that facility.
5. Indian Agricultural Research Institute findings, 33% of organic
products sold contained pesticides residues.
6. Organic farmers are forced to sell their produces at premium
prices due to reduced produce. This makes it unaffordable for the
common man.
4. Organic farming brings back human's harmonic way of life with nature.
This is way forward for the world which is riddled with climate change
and other ecological problems.

Agricultural export policy, 2018

1. Policy changes: Reforms in APMC Act and streamlining of mandi fee.

2. Infrastructure: Creating inland transportation links
alongside dedicated agricultural infrastructure at ports with 24x7
customs clearance for perishables.
3. Quality regimen: A holistic response to Sanitary and PhytoSanitary
(SPS) and Technical Barriers to Trade (TBT) barriers faced by Indian
products.
4. Focus on clusters: Involvement and engagement of small and medium
farmers for entire value chain as group enterprise within cluster of
villages at the block level for select produce.
5. Creation of Agri-start-up fund: Entrepreneurs are to be supported to
start a new venture in Agri products exports.
6. Promote value added organic exports. Organic products in North
East development of ‘AMUL’ style cooperatives.
7. Marketing and promotion of Brand India.
8. Attract private investments in export oriented activities and
 infrastructure.
9. Greater involvement of state governments in agriculture exports.

Cropping patterns

1. Cropping pattern is a description of the spatial distribution of different

crops. A change in cropping pattern means a change in the proportion
of area under different crops. It has been estimated that more than 250
double cropping systems are followed through out the country.
2. Why India has multiple cropping patterns
1. Rainfed agriculture still accounts for 65 percent of cropped area.
A large diversity of cropping systems exists under rainfed and dry
land areas with an over riding practice of intercropping, due to
greater risks involved in cultivating larger area under a particular
crop.
2. Crop production in India remained to be a subsistence rather than
commercial activity. Farmers primarily grow to fulfill their
household needs and follow the practice of rotating a particular
crop combination over a period of 3-4 years interchangeably on
different farm fields.
3. Under influence of above factors, cropping systems remain
dynamic in time and space, making it difficult to precisely
determine their spread using conventional methods, over a large
territory. However,
4. In India, there is an existing imbalance in cropping pattern of food
grains because a large proportion of area under food grains is
occupied by cereals. Green Revolution along with MSP regime
has skewed cropping pattern towards cereals, although, a shift is
being witnessed towards other commercial crops and horticulture.
3. Geographical factors
1. Soil: Black soil in Deccan plateau is good for cotton.
2. Climate: In the summers where temperature is high, tropical
crops like Gaur, bajra while in winter temperate crops like
mustard, wheat is grown.
3. Rainfall: In the dry regions where the rainfall is scanty, more
dependence on rainfed crops like coarse cereals. Water logging
areas cultivate rice.
 4. Topography: Tea is grown on gentle slopes.
4. Economic factors
1. Prices also influence cropping patterns. One is that the variations
in the intercrop price disparities led to shifts in acreage between
the crops. Another is that the maintenance of a stable level of
prices for a crop provides a better incentive to the producer to
increase the output. Relative profitability per acre is main
consideration which influences the crop pattern.
2. There is a relationship between the farm size and the cropping
pattern. The small farmers are first interested in producing food
grain for their requirements. Small holder therefore devotes
relatively small acreage to cash crops than large holders.
5. Government policies
1. MSPs for some crops like wheat and rice have induced farmers to
cultivate them more and subsequent neglect of others.
2. Food crops act, Land use act, intensive schemes for paddy, for
cotton and oilseeds, subsidies affect the cropping pattern.
6. Technological factors
1. Irrigation availability led to cultivation of rice in arid areas of
Punjab and Haryana. Lack of irrigation in Bundelkhand region led
to cultivation of coarse cereals more.
2. Improved varieties, mechanisation, plant protection, access to
information, etc., are also factors which influence cropping
pattern.
7. Social factors
1. Food habits also play a role. East and South India prefers rice as
staple food while it is wheat in North India.
2. Major reason of tea plantations succeeding in Darjeeling and not
in Himachal Pradesh was availability of labour from UP and Bihar
and not in HP.
8. Issues and solutions
1. Excessive use of water leading to ground water depletion and soil
erosion. Water scarcity is already showing its effect in Punjab,
Haryana and Western Uttar Pradesh.
2. Because of skewed MSPs, cropping patterns are highly skewed in
the favour of rice and wheat and against pulses. Govt should
educate farmers of benefits in diversifying crops.
 3. High doses of fertilisers and pesticides are applied due to bad
Urea policy. This has affected productivity and reduced organic
matter. Now to sustain earlier yield levels farmers need to apply
higher fertiliser doses. Govt need to move away from current
subsidy regime to Nutrient based subsidy incase of urea.
4. Lack of information about global factors has resulted in farmers
sowing the crop despite their being no demand. Agriculture
extension services with help of technology can take care of this
problem.
5. Land diversion of highly productive irrigated land to non-
agricultural uses such as industry, housing etc., specially at rural-
urban interface needs to be viewed seriously. Although land
acquisition is important, such productive lands should not be taken
away.
6. A critical lacunae in past agricultural research approach has been
inadequate effort to take into account the experience and
knowledge base of the farming community. This top down
approach of agricultural scientists had given poor results.
7. Indian farmers should also diversify their cropping pattern from
cereals to high value crops. This will increase incomes and reduce
environmental degradation simultaneously. Because fruits,
medicinal herbs, flowers, vegetables, bio-diesel crops like jatropha
and jojoba need much less irrigation than rice or sugarcane.
8. During 1960s this would have been seen as a disaster. But if India
imports cereals while exporting high-value commodities, it will be
following successful economies like Italy, Israel and Chile.
9. Cropping patterns in drought regions
1. Growing crops like maize, millets, pulses which can grow in even
hostile condition and lesser than average water. Promoting pulse
production can serve twin benefits of reduced food inflation and
nutrition deficiency.
2. Promoting horticulture and floriculture under controlled water and
temperature technology to ensure assured income for farmers is
also a way forward.
3. Flowers such as Jerbera (bio-fuel crops) which do not require a lot
of water can be grown.
4. We also need to invest in research to produce crops which are of
 short duration, drought resistant and heat resistant varieties and
pre harvest sprouting tolerant grains to offset climate change.
10. Solutions to water crisis
1. Natural and constructed wetlands also biodegrade or immobilise a
range of emerging pollutants.
2. Watershed management is another nature-based solution to spur
local economic development, job creation, biodiversity protection
and climate resilience.
3. Environmentally friendly agricultural systems like those which
use practices such as conservation tillage, crop diversification,
legume intensification and biological pest control work as well as
intensive input systems.
4. Micro-irrigation methods like drip, sprinkler, etc can also be
promoted to improve water use efficiency.

Farm mechanisation

1. Rapidly growing demand for food has brought forward the need of
efficient agriculture. Thus, it becomes imperative to focus on improving
intensity of farm mechanisation in country.
2. Advantages of farm mechanisation
1. It lowers cost of cultivation, as it saves human labour and cattle.
2. Increase in crop intensity and yield thus ensuring better returns to
farmer. Farmers renting equipment have reported yields rising by
around 20%.
3. Reduction of risk of weather and non-availability of labour thus
minimising post harvest wastage.
4. Custom Hiring Centres (CHCs) which rent out machinery to small
farmers, service centres etc., for employment of rural youth.
5. Improved working conditions and enhanced safety for farmers.
6. Conversion of uncultivable land to agricultural land through
advanced tilling technologies.
3. Difficulties in farm mechanisation
1. Indian agriculture is highly diverse in terms of farm size and soil
types. So farms need customised farm machinery and equipment
for different regions of the country.
 2. Majority of small cultivators are poor who are not in a position to
purchase the costly machinery like tractors, combine harvesters
etc., coupled with poor knowledge of farmers.
3. Due to land fragmentation, the farm size is less. As a result of this,
farm machinery generally remains under-utilised.
4. Skewed and seasonal usage due to crop growth in rainy season.
There is lack of sufficient irrigation to use it round the year. As
still 65% of lands in India are not irrigated.
5. Increased mechanisation results in surplus draught cattle and their
upkeep is a concern for the farmers.
6. The lack of repair and replacement facilities especially in the
remote rural areas is another hindrance.
4. Recommendations
1. Formation of cooperative for ownership of farm machinery at
village level. Supporting the finance of second hand tractors for
small farmers.
2. Encourage land consolidation and development of land lease
market.
3. Need to focus research efforts towards design and development of
farm machinery suitable for different types of soils, farm sizes and
diverse crops.
4. Focus on standardisation and quality control especially for farm
equipment so as to protect the interest of farmer and increase
usage.
5. Strengthening the agriculture extension services such as in-field
demonstration by the experts.
6. Develop a legislative and structural framework that encourages
custom hiring (renting) services.
5. Though mechanisation has improved the state of agriculture in certain
parts of the country, it is still in nascent stage and it will remain so
unless concrete measures are taken to propel farmers towards adoption
of efficient farm mechanisation practices.

Agricultural labour
1. Given the fact that a large part of Indian workers were in the unorganised
sector with almost no bargaining power, the workers were likely to be
exploited by employers and paid below subsistence wages and hence
Minimum wages Act, 1948 was passed.
2. Lacunae in the implementation of act
1. Informalisation of the tenants due to unintended consequences of stringent
tenancy laws, thus, making the formal identification of the labourers difficult
to implement the act.
2. Less focus on increasing awareness about the act among workers. The
workers are compelled to accept lower wages due to factors such as weak
bargaining power, lack of availability of work, indebtedness etc.
3. Low penalties for non-compliance dissuade employer to contravene the
provisions of the Act. Also the procedure for imposing the penalty is
cumbersome.
4. Enforcement responsibility vested in the states and thus, we have vast
differences in the minimum wages fixed in different states and for different
activities and occupations. It makes monitoring and fixing accountability
challenging.
3. Following measures
1. Reforming the tenancy laws to prevent informalisation and ensuring
welfare of agricultural workers.
2. Linking wages with CPI and updating it every 5 years as provided in the
minimum wage act.
3. Skilling agricultural labour to increase their bargaining power and also
open up different avenues of employment to reduce disguised unemployment.
4. Digital empowerment of workers to connect them to labour market and
find decent low skilled works in the nearby areas.
5. Better compliance with minimum wage act by simplification of the act.
Steps should be taken to reduce multiplicity of minimum wage rates across
centre and states.
6. Increasing the penalties of non-compliance and increasing awareness of
labour force.
4. The implementation of the act in letter as well as spirit only can help India
to achieve the ideals enshrined under article 43 of the Indian constitution.

Evergreen revolution

1. Evergreen revolution means the pathway of increasing production and

productivity in a manner such that short and long term goals of food
production are not mutually antagonistic. It also implies to produce
 more from less land, less pesticide, less water and it must be a
sustainable agriculture practice.
2. Nutritional security
1. It can address the problems of malnourishment, hidden hunger by
increasing the production of milk, pulses, fortified food and other
micronutrient rich foods.
2. It also aims for higher productivity and thus increases farmers
income who can now invest in health. Thus, leading to better
health and educational outcomes.
3. It aims to produce more from less and thus decreases the pressure
on water resources leading to better access to water and ecological
sustainability.
4. Educational outcomes being a spinoff of evergreen revolution can
lead to increase in awareness on sanitation.

Climate change on food security

1. Climate change has added to the enormity of India’s food security

challenges. At the heart of the Sustainable Development Goals (SDGs)
are targets to end hunger, achieve food security, and improve nutrition.
2. Impacts
1. Warming temperatures will have impact on the yields of crops
over a range of important food producing areas such as Australia,
North America and India.
2. At sea, warming temperatures will cause changes to the
abundance and range of marine species used for food, leading to
implications for both the billion people who depend on
fish. Rising sea level will have an impact on coastal agriculture
thereby affecting food security.
3. Changing monsoon patterns in the country and unseasonal rains
have an impact on the cropping seasons. In the past two three
years we have seen crops getting destroyed by unseasonal rains,
hailstorms in Maharashtra, Gujarat, Punjab etc. Escalation of heat
waves.
4. Climate change increases the frequency and intensity of some
disasters such as droughts, floods and storms. Climate related
disasters have the potential to destroy crops, critical infrastructure,
 and key community assets, therefore deteriorating livelihoods and
exacerbating poverty.
5. Climate change could increase the prices of major crops in some
regions. Nutrition is likely to be affected by climate change
through related impacts on food security, dietary diversity, care
practices and health.
6. 85% of farmers in India are small and marginal with less than 2
hectares of land. They are dependent on monsoon.
3. Steps required
1. Indian government should assist farmers by providing value added
weather services to farmers. An early warning system should be
put in place to monitor changes in pest and disease outbreaks.
2. Efficient water use such as frequent but shallow irrigation, drip
and sprinkler irrigation for high value crops, irrigation at critical
stages.
3. Farmers can adapt to climate changes by shifting to planting dates,
choosing varieties with different growth duration, or changing
crop rotations. Developing short duration crop varieties that can
mature before the peak heat phase set in.
4. The NSS 70th round indicates that a very small segment of
agricultural households utilised crop insurance due to a lack of
sufficient awareness and knowledge. Hence there is an urgent
need to educate farmers, reorient Krishi Vigyan Kendras and other
grass root organisations with specific and more funds.
5. Preventive measures for drought that include on-farm reservoirs
in medium lands, growing of pulses and oilseeds instead of rice in
uplands, mulching and more application of farmyard manure.
6. We need to transmit best practices elsewhere such as growing
Kuttanad rice in low lying water inundated areas of Kerala to
other parts of the country.
7. Improve non-farm incomes to the poor farmers by encouraging
animal rearing, etc.
8. Promotion of satellite enabled agriculture risk management,
creating micro-level agro-advisories, providing customised real
time data and capacity building of stakeholders.
4. Steps taken by the Government
1. Indirect steps
 1. Pradhan Mantri Krishi Sinchayee Yojana.
2. Pradhan Mantri Fasal Bima Yojana.
3. Soil Heath Card.
4. Paramparagat Krishi Vikas Yojana.
5. National Agriculture Market (NAM) and other rural
development programmes are positive interventions that can
address the vulnerability of farmers and rural households.
2. Direct steps
1. National Innovations on Climate Resilient Agriculture
(NICRA).
2. National Mission for Sustainable Agriculture (NMSA).
3. National Adaptation Fund (NAF).
4. State Action Plan on Climate Change (SAPCC).
5. Diversification of agriculture
1. Promotion of cultivation of pulses and coarse cereals under
National Food Security Mission (NFSM) and oilseeds under
National Mission on Oilseeds and Oil Palm (NMOOP).
2. Crop diversification programme in Green revolution states as a
sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) to divert
the area of water guzzling paddy to alternate crops like pulses,
oilseeds, maize, cotton and agro forestry system.
3. Technology Mission for the Integrated Development of
Horticulture in the North-eastern region. This will ameliorate the
regional bias. Initiative for nutritional security through Intensive
Millet Promotion (INSIMP), National Horticulture Mission
(NHM) and Technology Missions.
4. Promoting water conservation techniques like System of Rice
Intensification (SRI), etc.
5. Promoting organic farming through various schemes like
Paramparagat Krishi Vikas Yojana (PKVY), Rashtriya Krishi
Vikas Yojana (RKVY) etc.
6. Indian Council of Agricultural Research (ICAR) has developed
new pulse variety (PUSA Arhar -16) with extra early maturing
period.
6. What should small farmers do
1. Farming as per agro-climate zones: Punjab farmers are
 practising water intensive crops like sugarcane, rice, which is
climatically not suitable. Thus, practising farming as per agro-
climatic zonation would be sustainable.
2. Clean energy: Farmers need water and machines which runs on
diesel, and kerosene causing pollution. They should be replaced
by clean energy sources, thus adapting climate smart technologies
and to reduce emissions from agriculture.
3. Scientific knowledge: Farming community need to upgrade their
scientific understanding about seed inputs, fertiliser, use of water
and agricultural practises, so that they can mitigate the impact of
climate change as well as get adapted to technologies such as
biogas and drought and flood-resistant crop varieties, shifting to
micro-irrigation.
4. Adaptation methods: Inter cropping, multiple cropping and crop
rotation, zero tillage, rainwater harvesting, afforestation, alternate
wetting and drying of paddy, by reducing the frequency of
irrigation, methane emissions from flooded rice production can be
cut in half.
5. Collective farming: Small farmers can adopt the collective
farming approach and introduce modern technologies to increase
the yield.
7. Climate proofing of development
1. Adoption of policies that are sustainable and help mitigate climate
change impact. Ex: Bio-agriculture, Green Energy, etc.
2. Build smart cities with additional focus on disaster mitigation,
better flood management, etc.
3. Stakeholders should be involved in policy making so as to address
their concerns and ensure their involvement in execution.
4. Encouraging innovation to develop technology and techniques
that may bear impact of climate change. Ex: Disaster resistant
seeds.
8. Steps being taken for promotion of allied activities
1. Integrated Farming system: Focuses on horticulture, livestock,
and bee keeping along with agriculture. This scheme will not only
increase farmers’ income, it will also mitigate the effect
of drought, flood, and other natural disasters.
2. RKVY-RAFTAAR: To make farming a remunerative economic
 activity through strengthening the farmer's effort, mitigating risk
and promoting agribusiness entrepreneurship.
3. National Agro-Forestry Policy: It has been prepared for
increasing the income of farmers and for achieving climate
support.
4. Reconstituted National Bamboo Mission: Under it Bamboo
cultivation is promoted to diversify farmers Income. The Indian
Forest Act, 1927 was amended, to remove bamboo rom the
definition of trees so as to promote its hassle free production and
marketing.
5. Livestock promotion: Conserving indigenous breeds under
Rashtriya Gokul Mission, improving genetic makeup, increasing
milk production, establishing Dairy Processing and Infrastructure
Development Fund, generating self-employment opportunities
through Dairy Entrepreneurship Development Scheme.
6. Beekeeping: Promoted through training large number of
farmers/beekeepers, registering bee keepers and honey societies,
establishing Integrated Bee Keeping Development Centres
(IBDC).

Pulses
1. Pulses are a major source of protein in India and also help in soil
rejuvenation without consuming much water. There is mismatch between
demand and supply due to stagnant production of pulses, caused by low yield.
2. Why low production of pulses
1. Yield of pulses is low because of lack of HYV seeds while rice and wheat
have various varieties of seeds.
2. Long duration of crops, susceptibility to pests and diseases are some of the
reasons why farmers find it difficult to fit pulses in the usual cropping
pattern.
3. Low MSP offered by Govt for pulses also discourage the farmers from
producing pulses. While rice and wheat have skewed MSP pricing.
4. Cultivation of pulses has been pushed to more and more marginal and
unirrigated lands with low fertility. Hardly 15 percent of the total pulses
acreage is irrigated.
5. Import and export policies of pulses are aimed towards taming domestic
prices to protect consumer interests, exports are restricted while import is
allowed with low duties. It kills motivation among farmers to invest in pulses.
6. Absence of buffer stock policy for pulses for a long time is also a factor.
Lack of procurement and storage infrastructure in warehouses and NAFED
results in sudden decrease of prices right after harvest of pulses.
7. Lack of information to farmers on the beneficial effects of growing pulses
to the soil fertility.
8. Though pulses are priced as high as Rs.200/kg, most of the money is
earned by the middlemen and distributor, not the farmer. Hence, farmers due
to low returns have little incentive for growing pulses.
3. Steps taken by the Government
1. Raising the MSP for pulses to help push up their output.
2. The previous Government has come up with a program called Pulses
Villages under Rashtriya Krishi Vikas Yojana (RKVY). Some 5000 odd
villages are adopted and intensive cultivation of pulses was practised.
3. Inclusion of cluster demonstrations in rice fallows for pulses cultivation
under BGREI (Bringing Green Revolution in Eastern India) scheme in order
to increase production of pulses in Eastern India.
4. Initiating programs such as accelerated pulse production program under
National Food Security Mission (NFSM).
5. Seed hubs are being created through ICAR, State Agriculture Universities
(SAUs) and KVKs for ensuring the availability of new kinds of seeds.
6. ICAR developed Pusa arhar-16 variety with early maturing feature.
7. Dal diplomacy is under way to scale up the approximately 5 million tonnes
of pulses India procures from 46 countries. Recent signing of pact with
Mozambique to double pulses imports from it.
8. Restrict exports of these commodities and open up imports at zero duty.
Suspend forward and futures trading of pulses.
9. Invoke the Essential Commodities Act (ECA) to impose stocking limits,
forcing private trade to liquidate stocks immediately.
4. Other remedies
1. Encourage states to delist pulses from their APMCs.
2. Abolish stock limits under the ECA. It will encourage and incentivise the
farmers to store not sell off immediately. It will help in building the buffer
stock and most importantly the benefits of this buffer stock will go to farmers
not to the hoarders.
3. Need to employ advances of biotechnology to create seeds that are drought
tolerant, input responsive and pest and disease resistant to increase the yields
and output of pulses. Distribution of good quality seeds for free.
4. Devise a crop neutral support policy for farmers. This should incentivise
farmers to shift from the current major crops to pulses. It will also help
alleviate the supply glut faced by rice, wheat and sugarcane.
5. Create a new institution as a Public Private Partnership (PPP) to compete
with and complement existing institutions to procure, stock and dispose
pulses.
6. There is also a need for an import duty of about 10 percent on pulses to
make sure that the landed costs of imported pulses are not below MSPs. Lay
down a framework for allowing exports of pulses after a particular threshold
of domestic production is met. This would incentivise more farmers to
cultivate pulses due to higher international prices. R&D should be promoted
to provide for HYV pulses.
7. A robust commodity exchange should facilitate price discovery and spot
prices should be reflective of future volatilities. With regulations through the
SEBI, the exchange can act as a messenger of short to medium run future
prices.
8. The government should promote awareness through farming cooperatives
and KVKs among farmers regarding the advantages of growing pulses such as
increasing fertility.
5. Farmers need to be assured of remunerative prices and financial assistance
to buy new seeds, fertilisers, plant protection chemicals etc. Pulses are
necessary for nutritional security of the nation as pulses consumption is
necessary for reducing maternal and infant mortality.

Coarse cereals

1. Coarse grains refer to cereal grains other than wheat and rice or those
used for animal feed or brewing. They constitute Jowar, Bajra, Maize,
Ragi etc.
2. Importance of coarse grains
1. They are rich source of nutrients and thus would help fight hidden
hunger. Ex: Bajra is high in iron content, Ragi in Calcium etc.
Being inexpensive, they can provide an accessible source of
essential nutrients to poor..
2. They can be used as nutrient rich fodder, thereby holds the
potential to boost livestock productivity.
3. They can be used as raw material in food processing industries.
Such products can be sold in international market as well adding
 to our forex reserve.
4. Coarse cereals can be grown in harsh climate, thereby can bear the
ill-effects of climate change being witnessed by Indian
agriculture.
5. Their cultivation is less input intensive. Thus would help reduce
the burden on fertile soil and underground water.
6. They provide additional income to marginal farmers and acts as
insurance in case of crop failures.
3. Coarse grains can be integrated in our cropping pattern
1. Multi-cropping and Inter-cropping practises. Cereal grains can be
grown along with input intensive crops like rice and wheat. This
would help maintain soil fertility and can provide assured income
to farmers in case their main crop fails.
2. Incentives like MSP (Minimum Support Prices) which is currently
restricted to non-coarse cereals can be extended to coarse cereals.
3. Increasing share of these crops in National Food Security Mission
(NFSM) and in Mid-day meal scheme.
4. Removing supply chain inefficiency and marketing bottlenecks
for coarse grains and creating robust procurement mechanism for
coarse cereals.
5. Initial support to farmers for cultivating coarse grains in forms of
subsidy.
6. Research and development is required to develop HYV seeds for
coarse grains. The extension services through KVKs must be
provided to farmers.
7. Creating market for the coarse grains by change in consumer
choice, new food habits through advertisements, awareness
campaigns, social media etc. Education and awareness among
people about the benefits of nutri-cereals.
8. Promoting food processing industries that use coarse grains as
input.
9. International cooperation like in pulses to promote their
cultivation abroad and import it to India to meet demand if need
be.
4. The initiatives must be implemented effectively keeping in mind the
importance of coarse grains in not only ensuring nutritional security but
also promoting balanced regional growth and safeguarding farmers’
 interest.

Horticulture

1. Horticulture production, including fruits and vegetables, in 2016-17

outstripped food grain output for the fifth year in a row. Horticulture
now accounts for more than one-third of the agriculture sector’s GDP.
2. Potential of Horticulture sector
1. Many horticulture crops are short duration crops, and grown in
small plots of land, hence small and marginal farmers now prefer
to grow them.
2. It is highly productive. Horticultural harvest of 295 million tonnes
has been gathered from just one-fifth of the area under food grain
is a significant aspect.
3. Horticulture is highly labour intensive and availability of cheap
labour and less capital input requirements are suitable for poor
farmers. Even it is less susceptible to bad monsoon.
4. These crops ensure a quicker cash flow, unlike say, pulses, which
may take more than six months from sowing to marketing.
5. Horticulture has expanded in the areas which had been slow to
adopt green revolution technologies.
6. Better incomes, urbanisation, changing consumption and lifestyle
patterns have driven demand of fruits, vegetables, mushrooms,
medicinal plants and flowers which is addressed by small farms
near cities.
3. Challenges in realisation of full potential
1. Lack of market support and paucity of post-harvest produce
management chain from farm to fork. Distress sales and mass
destruction due to improper post-harvest handling like cold
storage and want of processing facilities, lack of refrigerated
vehicles to transport.
2. The lack of availability of quality planting material, specially
processable and exportable varieties, has been another area of
concern.
3. The wastage for horticulture crops is between 5 to 15 percent due
to high perishability in the case of fruits and vegetables.
 4. Lack of reasonable returns for produce though consumer prices
remain high due to multiplicity of intermediaries in horticultural
marketing.
5. Lack of institutional finance. Lack of private investment due to
problem of no land leasing and lack of contract farming,
cooperative farming. Absence of micro-irrigation infrastructure,
research in horticulture crops for higher shelf life.
6. Poor enactment of APMC Acts in states, open-ended MSP regime
encouraging farmers to grow food grains even though the climate
may favour horticulture.
4. Govt initiatives
1. Centrally Sponsored Mission for Integrated Development of
Horticulture (MIDH) to reduce wastage. Under MIDH, financial
assistance is provided for setting up and modernisation of
nurseries, tissue culture labs, seed and planting material
production, seed processing infrastructure and import of planting
materials.
2. Merchandise Exports from India (MEIS) under Foreign FTP
2015-20, incentivises exports of farm products including
fruits/vegetables.
3. APMCs have been reformed in many states in line with model
APMC Act to exclude horticulture crops from it.
4. Extending GI tags to various horticulture crops especially from
the North-East region.
5. Model Land leasing bill prepared by Niti Ayoog to streamline
land leasing and increase private investments in land.
6. The small and marginal farmers have been mobilised to form
Farmer Producer Organisation (FPO).
5. Way forward
1. Vegetable and fruit producers cooperatives, formed on the lines of
the milk cooperatives, can be incentivised to bridge the gap
between producers and consumers.
2. Post-harvest processing and value-addition, which is rather low at
present, needs to be stepped up substantially.
3. Also needed is an extensive network of refrigerated warehouses to
store horticultural products and minimise wastage.
 4. The government needs to put in place a stable policy regime,
particularly with respect to the domestic and external trade of
vegetables and fruits.
5. Government has envisioned to double farm income by 2022 to
bring economic prosperity as agriculture sector employs half of
the population in country. To realise it, the horticulture sector
holds significant importance.

Farmer Producer Organisation (FPO)

1. Union Budget 2019-20 provided for formation of 10,000 new FPOs to

ensure economies of scale for farmers over the nest 5 years.
Farmer suicide
1. More than 3 lakh farmer suicides occurred in the past decade. These can be
linked to the agrarian distress caused by structural changes in agriculture and
changes in economic and agricultural policies.
2. Causes
1. Landholdings: Nearly 85% of farmers are small and marginal farmers
with land holdings less than 1-2 Ha. Small holdings are not agriculturally
productive and do not provide a good hedge against crop failure.
2. Indebtedness: As per NSSO report, over 52% of all farm households in
the country are indebted. Heavy dependence on high cost inputs further
increases farmer distress.
3. Liberalisation: LPG policies that have exposed Indian agriculture to the
forces of globalization. Small farmers find it difficult to compete with their
technology savvy global counterparts.
4. Climate change: It is resulting in greater rainfall variation and drought
floods has increased farmer’s vulnerability. It may lead a farmer to default on
his crop loans.
5. Crop choices: Lack of diversification of crops, lack of mixed farming,
changing cropping patterns especially due to the shift to cash crops which are
highly water intensive and rain dependent.
6. State: The withdrawal of the state from agricultural extension activities has
been replaced by multinational seed and fertiliser companies. Delay in claim
settlement of agricultural insurance in case of crop failure due to red tapism,
delay in crop damage assessment, disputes over land rights and lack of proper
land records with state etc.
3. Long term Government efforts
1. Diversification: Promoting farm diversification by way of National
livestock mission, Horticulture missions, support for fishing etc.
2. Soil productivity: Advice to farmers on productivity of Soil. Soil health
card scheme, Kissan Call centres, neem coated urea etc.
3. Irrigation: Expansion through canals, micro irrigation, use of Pusa
hydrogel that increases water absorption capacity of soil etc. PMKVY
separating feeder and agri lines etc.
4. Cropping pattern: Drought free varieties, less water intensive crops will
improve productivity in long run. To improve agricultural resilience against
the vagaries of monsoon, there is a need for changing the cropping patterns
according to the agro-climatic zones and sustainable agriculture. Ex: Pulses in
water deficient areas.
5. Institutional credit: Interest subvention scheme, greater credit to farmers
through promotion of micro credit agencies and SHGs. Radhakrishnan report
on agricultural debt has emphasized the need for state governments to
maintain a flexible approach, adjusted to ground conditions in each state.
6. Insurance: To protect the farmers from any post-harvest financial losses,
there should be a greater coverage of the insurance, etc.
7. NAM: To maximise farmer’s profit, agricultural marketing and real-time
price discovery is needed. This can be done by implementing e-NAM.
8. Agricultural skills: Skill India mission should be used for extension to
impart agricultural skills. Local participation of progressive farmers, SHGs
and Primary Agricultural Cooperative societies (PACS) should be leveraged
to help transfer technology through one-to-one exchange of information.
4. Doubling farmer’s income by 2022
1. Increasing incomes by increasing productivity: Biotechnology is set to
play critical role in crop and livestock production. Bridging yield gaps among
the States.
2. Water and agro-input policies: Rationalising fertiliser subsidy through
NPK pricing, integrated water use policy, geographically suited farm
mechanisation in India.
3. Integrated farming system: Animal husbandry promotion through
Pashudhan Sanjivani, Animal Health Card, creation of e-Pashudhan Haat.
4. Better market price realisation: Revision of the APMC Act, launch of e-
NAM and reducing post-harvest losses.
5. Policy measures: Structural reforms in agriculture pertaining to land
leasing, nationwide crops competitiveness study, ICT based agricultural
extension and integrating all central and state subsidies.

ICT in the aid of farmers

1. Agriculture is an information intensive sector where farmers should be well
versed in the latest farming technologies and business techniques. ICT plays
an important role in addressing the challenges faced in management of natural
resources.
2. Benefits of e-governance to farmers
1. IT supports new methods for precision agriculture like computerised farm
machinery that applies fertilisers and pesticides. Farm animals are fed and
monitored by electronic sensors and identification systems.
2. Information dissemination throughout crop cycle through technologies like
GIS, mobile phones regarding weather conditions, input requirements like
soil health, fertilizers etc. Example: DD kisan. e-choupal empowers the
farmers with timely and relevant information regarding crop prices, etc.,
enabling them to get better returns for their produce. Village Knowledge
centres (VKCs) also help in this direction.
3. IT promotes agriculture marketing by integrating national markets through
e-NAM programme.
4. PMKSY aims to assess the damage to crops for insurance purposes through
satellite and Drone imagery. This will improve accuracy and compensation.
5. ICT will help in land records digitisation and modernisation which is a
great step in removing the malpractices and creating assurance of rightful
ownership.
6. Direct connect through the e-commerce has facilitated large number of
agro-based small enterprises in rural areas. Women’s livelihood is being
facilitated amongst the weavers community in the north eastern states by
marketing their product through the internet medium.
7. Kisan credit card use ICT to provide affordable credit for farmers in India.
The Kisan Credit Card allows farmers to have cash credit facilities without
going through time consuming bank credit screening processes repeatedly.
8. Private sector can also be involved now to provide IT solutions and
software. This area seems to be most promising as many facilities can be used
like audio video conferencing, fast access to information etc. This will also
provide employment opportunities to youth.
3. Govt initiatives
1. Financial assistance: The Pradhan Mantri Jan dhan Yojana, along with
DBT scheme is further planning to extend it to almost all areas.
2. Land records digitisation: Some projects like e-bhoomi by Karnataka
Govt showed how this can help in resolving land disputes and other issues
faced by farmers.
3. e-Mandi: has been launched to make procurement of agricultural products
smoother and provide competitive remuneration, especially for small and
marginal farmers.
4. Advisory role: Use of Kisan call centres, IT kiosk and agricultural clinics
to provide information on farm inputs, market prices and consultation.
However, such facilities are available at very few places due to literacy and
language barriers and even internet connectivity.
5. Weather information: Sending mobile SMS to give weather information
on pilot bias has helped farmers in sowing and protecting crops. Government
has recently developed a new app called NOWCAST to give weather related
information to farmer on timely basis.
6. mKrish: It is developed by TCS provides on phone suggestions for which
crops best for which soil, seasonal info, diseases spreading for crops, best
time for harvest. It helped farmer to be get good information with scientific
reasoning behind them.
7. Soil health card scheme: It helps us in measuring the soil quality and
digitising such record and helping farmer know about right mix of fertilisers
and nutrient required. Once a farmer gets his soil health card attached with
mobile number, he regularly gets update customised for his farmland.
8. MMP: Apart from it Government through NeGP plans to initiate many
mission mode projects, the National optical fibre network is also in process.
The objective is to avail multiple benefits to farmers and rural community.
9. Digital literacy: However the major issue still remains to be digital
literacy, language barriers, farmers lack of comfort and trust on this alien
medium, mode of service availability. All these issues need a resolution, else
it is only the large and medium farmers who will avail the benefits, leaving
the poor, marginal ones left out.
4. Krishi Vigyan Kendra
1. Krishi Vigyan Kendras (KVKs) are the frontline agricultural extension
center funded by the Indian Council of Agricultural Research (ICAR). The
KVKs focus on training and education of farmers, rural youth, on field
demonstration of new and improved farming techniques etc.
2. It was felt that the Indian farmers do not have knowledge about scientific
farming methods, the soil crop linkages, fertiliser requirements etc. Hence,
KVKs were set up to ensure a last mile linkage, which would provide farmers
with information and training about scientific farming, mitigation measures in
case of adverse climatic events, consultancy services regarding the type of
crops to be sown, the type and amount of fertiliser to be used etc.
5. Limitations of KVKs
1. KVKs have different organisational structures. While some come directly
under ICAR, others are monitored by State agricultural universities or even
Civil Society Organisations. This has led to problems of monitoring and
coordination.
2. While the KVKs have had some impact by providing training and some
advisory services, their mandate is very large which they have not been able
to fulfill due to lack of budgetary support.
3. One KVK has been established in every district in the country. However, a
district could be very large. Hence, one KVK has not been enough to cover
the entire district. Thus, the impact on KVKs has been only in the immediate
surrounding areas.
4. The KVKs do not have integration with the weather monitoring and
forecasting services. This impacts their ability to advise farmers about the
mitigating steps in case of adverse climate.
5. While KVKs have had some impact, there is potential to do a lot more. The
government must look at reviewing the locations of KVKs, meet the
manpower requirements and also consider setting up more than one KVK in a
district. KVKs are essential in order to reach the goal of at least 4% growth in
agriculture. They must be empowered to help proactively in achieving that
target.

Economics of animal rearing

1. With only 2.29% of the land area of the world, India is maintaining
about 10.71% of the world’s livestock. A large manpower is also
involved in livestock related activities like manufacture of animal food
products and beverages, manufacture of textiles, tanning & dressing of
leather, farming of animals, etc.
2. Importance
1. Livestock contributes 25.6 percent of gross value added in the
agriculture sector. It provides self employment to about 21 million
people.
2. Animal husbandry is an integral component of Indian agriculture.
Livestock provides nutrient-rich food products, draught power,
dung as organic manure and domestic fuel, hides & skin, and are a
regular source of cash income for rural households.
3. Livestock wealth is much more equitably distributed than wealth
associated with land. Majority of livestock market in India is
 owned by 67 percent of the small and marginal farmers and by the
landless. Thus, growth in this is more inclusive.
4. The small ruminants and poultry livestock provide livelihood
support to the poor underprivileged landless, and marginal farm
households as there upkeep cost is low and are source of milk,
eggs and meat. Tribals have community controlled lands which
provide them large pastures for their animals. Moreover tribals are
still engaged in subsistence agriculture. Thus, livestock is a good
source of income and support to them.
5. Livestock rearing at the household level is largely a women led
activity, and therefore income from livestock rearing and
decisions related to its management are taken within the
household are primarily taken by women. This increases role of
women in decision making.
6. Livestock rearing, particularly in the rainfed regions of the
country, is also emerging as a key risk mitigation strategy for the
poorest. They face uncertain and erratic weather conditions which
negatively impact crop productivity and wage labour in the
agriculture sector.
3. Problems
1. Lack of poultry feed: Maize is the single most important
ingredient of poultry feed, its availability at a reasonable cost is
the major problem of poultry sector.
2. Diseases: Frequent outbreak of diseases and poor productivity
should be tackled with improved focus on animal health and
outreach of veterinary services.
3. Resource degradation: Livestock producers are both victims of
resource degradation and contributors to it. Corrective action
related to environment protection, ecosystem services, community
led interventions should be taken.
4. Markets: Development of a better paying markets for livestock
and commercialisation of livestock.
5. Human Resource: Lack of human resource development results
in less than optimal output.
6. Low productivity: Dead weight of carcass is low, indicating low
biomass. For bovine and cattle, milk production is also lesser than
international varieties.
 7. Poor hygiene: Poultry unfit to meet industry and export norms.
8. Poor finances: Livestock sector did not receive the financial
attention commensurate to its contribution. Systematic
implementation of loans and insurance schemes particularly in
remote areas is needed.
4. Schemes launched
1. Rashtriya Gokul Mission (RGM).
2. National Programme for Bovine Breeding and Dairy Development
(NPBBD).
3. National Livestock Mission: Which has 4 sub-missions in it, Sub-
Mission on Fodder and Feed Development. Sub-Mission on
Livestock Development. Sub-Mission on Pig Development in
North-Eastern Region. Sub-Mission on Skill Development,
Technology Transfer and Extension.
5. Solutions
1. Long term sustainable production measures should be looked into
increase the production and quality of maize.
2. e-pashuhaat portal has been developed for connecting breeders
and farmers regarding availability of bovine germplasm. Through
the portal breeders/farmers can sell and purchase breeding stock.
Network for a realistic national and global poultry database and
marketing intelligence may also be developed.
3. Active monitoring and control in case of any disease outbreaks in
rapid manner.
4. Implementation of livestock insurance schemes is also important.
Sufficient trained manpower should be developed in the existing
institutions.
5. The genetic resource of Indian livestock should be conserved
through programmes like Rashtriya Gokul Mission (RGM).
6. Proper utilisation of by-products of livestock slaughter for higher
income of livestock owners.
6. Livestock promotion
1. Recycling and utilizing agricultural waste would give a further
filip to farmers’ income.
2. Village level procurement systems: Installing of bulk milk chillers
and facilities for high value conversion of milk are needed to
 promote dairy in states. The private sector should be incentivized
to create a value chain for HVCs and dairy products at the village
level.
3. Breed indigenous cattle with exotic breeds: Breeding of
indigenous cattle with exotic breeds needs to be encouraged to
arrest the issue of inbreeding.
4. Convergence of schemes in fisheries sector: Integrate the Blue
Revolution scheme with MGNREGA. Ponds created through
MGNREGA should be used to promote aquaculture and can be
used to create potential clusters as well.
5. Capacity building for fish breeders and farmers: Establish fish co-
operative organisations and run vil- lage level schemes in
coordination with panchayats to disseminate best practices and
research.
7. Challenges facing the dairy sector
1. Majority of grazing lands are degraded or encroached. Diversion
of feed and fodder ingredients for industrial use.
2. Disease outbreaks leading to mortality and morbidity. Deficiency
of vaccines and vaccination setup.
3. Poor access to organised markets deprive farmers of proper milk
price.
4. Small herd size and poor productivity. Inadequate budgetary
allocation over the years for Animal husbandry, dairying and
fisheries.
5. Poor artificial insemination service network. This leads to low
milk productivity. Limited availability of quality breeding bulls.
8. Challenges facing meat and poultry
1. Maize is the single most important ingredient of poultry feed, its
availability at a reasonable cost is the major problem of poultry
sector.
2. Pathogenic and emerging diseases often cause heavy losses both
in domestic market and international trade.
3. There is a dire need for realistic national marketing intelligence to
bridge the gap between supply and demand of poultry and poultry
products.
4. To meet the growing demand of sustainable and safe production
there is a huge demand for trained and skilled manpower.
 5. Large size of target population to be improved in terms of
productivity with application of science and technology pose a
formidable challenge.
6. Low level of processing and value addition in animal products.
9. Challenges facing the fisheries sector
1. Shortage of quality and healthy fish seeds and other critical
inputs.
2. Lack of resource specific fishing vessels and reliable resource and
updated data.
3. Inadequate awareness about nutritional and economic benefits of
fish.
4. Inadequate extension staff for fisheries and training for fishers and
fisheries personnel.
5. Absence of standardisation procedures and branding of fish
products.
10. The growth in the livestock sector is demand-driven, inclusive and pro-
poor. The extent to which the potential of livestock can be harnessed
would depend on how technology, institutions, policies and financial
support address the constraints of the sector.

Irrigation systems in India

1. Flow irrigation
1. The water of a reservoir or tank usually remains at a higher level, and when
a channel is connected to it, water automatically flows down the channel
which serves the purpose of a canal for irrigating the land.
2. In this case the water level remains higher than the fields.
2. Lift irrigation
1. Water is lifted from wells and tanks by a crude country method and from
tube-wells by pumps for irrigation.
2. Nowadays the ground water is used for irrigation by lifting it by means of
electric or diesel pump sets.
3. Irrigation by canals
1. This is the most convenient method of irrigation. About half of the total
area under irrigation by canals is situated in Punjab, Haryana, Uttar Pradesh,
etc. It is easy to dig canals in these areas since the land is level and soil is soft.
2. Artificial reservoirs are created by constructing dams across rivers for
perennial canals. The Rajasthan canal of Rajasthan is the longest canal of
Asia. The north​ western part of Rajasthan is being irrigated by it. Many canals
have been dug out of the rivers Krishna, Godavari und Tungabhadra of
Andhra Pradesh.
4. Irrigation by wells
1. The rain water sinks down easily in the areas where the soil is soft and
porous. So water is available at a lower depth when wells are dug and it helps
irrigation. Primarily irrigation is carried on by wells in the western part of
Uttar Pradesh, some parts of Bihar and in the blank cotton soil area of the
Deccan. In addition to it, in the coastal strip of Tamilnadu and Andhra
Pradesh, some parts of Rajasthan, Haryana and Gujarat irrigation is also
carried on by wells.
2. The power driven pumps can lift water from a much greater depth from
tube wells. Now a days wind mills also lift water from the wells for irrigation
purpose. Irrigation by wells is more expensive, so more profitable farming of
vegetables is carried on in those areas.
5. Irrigation by tanks
1. Tank irrigation is the most feasible and widely practiced method of
irrigation all over the Peninsula, where most of the tanks are small in size and
built by individuals or groups of farmers by raising bunds across seasonal
streams.
2. The soil of this plateau is hard and stony and its land is undulated and so, it
is not easy to dig canals or wells in those areas.
3. Small channels are dug out of both the sides of the tanks to irrigate lands.
There are big reservoirs like Nizam Sagar, Usman Sagar, Hossain Sagar,
Krishna raj Sagar etc. in the peninsular India.
4. Besides, in rural areas of the Peninsula there are large numbers of small
tanks for irrigation, but such tanks dry up during acute drought period and
don’t help in irrigation.
6. Terraced irrigation
1. This is a very labour intensive method of irrigation where the land is cut
into steps and supported by retaining walls.
2. The flat areas are used for planting and the idea is that the water flows
down each step, while watering each plot. This allows steep land to be used
for planting crops.
7. Surface irrigation
1. In surface irrigation systems, water moves over and across the land by
simple gravity flow in order to wet it and to infiltrate into the soil. The main
advantage of this method is that it has low cost, low maintenance and does
not require levelling of land.
2. But the system has low water use efficiency due to wastage in seepages and
evaporation, soil erosion and runoffs increase.
8. Drip irrigation
1. This is known as the most water efficient method of irrigation. Water drops
right near the root zone of a plant in a dripping motion. If the system is
installed properly you can steadily reduce the loss of water through
evaporation and runoff.
2. But high installation cost is involved and not much awareness among
farmers.
9. Sprinkler irrigation
1. This is an irrigation system based on overhead sprinklers. You can also
have the system buried underground and the sprinklers rise up when water
pressure rises, which is a popular irrigation system for use on golf courses and
parks.
2. Suitable to all types of soil except heavy clay. Suitable for irrigating crops
where the plant population per unit area is very high. It is most suitable for oil
seeds and other cereal and vegetable crops.
3. Closer control of water application convenient for giving light and frequent
irrigation and higher water application efficiency. There is also less problem
of clogging of sprinkler nozzles due to sediment laden water. It may also be
used for undulating area and areas located at a higher elevation than the
source can be irrigated.
4. But installation cost is high, require electricity for running sprinklers.
10. Factors affecting irrigation types
1. Soil type: Sandy soils have a low water storage capacity and a high
infiltration rate. They therefore need frequent but small irrigation
applications. So, sprinkler or drip irrigation are more suitable than surface
irrigation. Clay soils with low infiltration rates are ideally suited to surface
irrigation.
2. Slope: Sprinkler or drip irrigation are preferred on steeper or unevenly
sloping lands as they require little or no land levelling. An exception is rice
grown on terraces on sloping lands.
3. Climate: Strong wind can disturb the spraying of water from sprinklers.
Under very windy conditions, drip or surface irrigation is preferred.
4. Water availability: Water application efficiency is generally higher with
sprinkler and drip irrigation than surface irrigation and so these methods are
preferred when water is in short supply.
5. Water quality: Surface irrigation is preferred if the irrigation water
contains sediments. The sediments may clog the drip or sprinkler irrigation
systems. Sprinkler systems are more efficient that surface irrigation methods
in leaching out salts.
6. Type of crop: Surface irrigation can be used for all types of crops.
Sprinkler and drip irrigation, because of their high capital investment per
hectare, are mostly used for high value cash crops, such as vegetables and
fruit trees.
11. Why tank irrigation is famous in South India
1. It is difficult to dig canals and wells due to undulating relief and hard rock
structure in south India.
2. Low percolation of rain water due to hard rock structure. So, not suitable
for well irrigation.
3. Also, most of the rivers of this region are seasonal and dry up in summer
season. Therefore, they cannot supply water to canals throughout the year.
There are several streams which become torrential during rainy season. The
only way to make best use of this water is to impound it by constructing
bunds and building tanks. Otherwise this water would go waste to the sea.
4. Most of the tanks are natural and do not involve heavy cost for their
construction. Even an individual farmer can have his own tank.
5. Tanks are generally constructed on rocky bed and have longer life span. In
many tanks, fishing is also carried on. This supplements both the food
resources and income of the farmer.
6. Population and agricultural fields are scattered which makes canal
irrigation economically unviable.
12. Disadvantages of irrigation
1. Competition for surface water rights. Depletion of underground aquifers
due to excessive water usage.
2. Irrigation with saline or high sodium water may damage soil structure
owing to the formation of alkaline soil.
3. Over irrigation because of poor distribution uniformity or management
wastes water, chemicals, and may lead to water pollution.
4. Under irrigation gives poor soil salinity control which leads to increased
soil salinity with consequent build up of toxic salts on soil surface in areas
with high evaporation. This requires either leaching to remove these salts.
5. Deep drainage may result in rising water tables which in some instances
will lead to problems of irrigation salinity requiring water table control by
some form of subsurface land drainage.
13. Potential of solar based irrigation
1. Solar pumps will reduce fiscal burden on Government arising from huge
power subsidies. The agriculture power subsidy burden was close to Rs.
67,000 crore in 2013-14.
2. Unreliable power quality due to shortage of power has hampered irrigation
potential.
3. Coal based power also poses environmental challenges.
4. Solar pumps could help fill irrigation gaps, mitigate greenhouse gas
emissions and help farmers adapt to climate change impacts.
14. Issues in solar based irrigation
1. High investment cost acts as a barrier for farmers. They are 10 times more
costly than diesel pumps.
2. Central and state subsidies as high as 90 percent of the capital cost are
offered. Such a high subsidy rate would be fiscally unsustainable if solar
pumps had to be deployed at scale.
3. There are concerns around over exploitation of groundwater, if pumps have
zero or low operational costs.
4. With limited market penetration currently, spurious and poor quality
products.
15. The steps needed for faster deployment
1. Quality controls and performance benchmark are urgently needed, allowing
competent manufacturers and service providers to compete.
2. Faster penetration of drip irrigation technology to ensure that load on solar
pumps is reduced and concerns relating to overuse of groundwater mitigated.
3. Instead of subsidising electric pumps, state governments could divert the
same resources as upfront solar pump subsidies. They could provide capital
subsidies or interest rate subsidies or both to encourage the uptake of solar
pumps on a large scale.
4. Partnership with private players who are working to make solar pumps
accessible to small and marginal farmers such as ClaroEnergy which rents out
mobile solar pumps is required.
5. Tying the subsidies for solar pumps to micro irrigation and water
harvesting or even integrating with the grid is another solution. Such
measures could reduce water consumption or give farmers an alternative
source of income.
16. PMKSY
1. It provides a sound framework for the expansion as well as effective use of
water in irrigation. It focuses on four broad areas — Accelerated Irrigation
Benefits Programme (AIBP), Har Khet Ko Pani, Per Drop More Crop and
Watershed Development.
2. Though we have announced ambitious PMKSY goals, progress on the
ground needs improvement. At the current pace, it will take decades to reach
the goal of Har Khet Ko Pani. Acceleration of pace requires many steps.
3. We need manifold increase in the allocation of funds for PMKSY. We need
quick clearance for interlinking of river project. We must include shallow
tube wells in Assam and other water rich states in east India in PMKSY.
4. Finally, we need a dedicated agency at national level to push the scheme.
17. Other efforts by Govt to improve irrigation
1. A dedicated irrigation fund has been created under NABARD, which has
been asked to issue tax-free bonds to borrow money.
2. The government has now asked the Central Water Commission (CWC) and
other agencies to take up completed projects and work towards increasing
their efficiencies.
3. Each of these projects would now also have water user associations (WUA)
that will decide on how the water is distributed to every claimant in the
irrigated area.
4. Solar irrigation.

Buffer stocking

1. FCI’s main aim is to provide price support for farmers by procuring at

pre-decided prices, storage or buffer stocks and distribution of food
grains at subsidised prices to poor people. The ultimate goal of the goal
of FCI is to ensure food security of India.
2. The benefits of maintaining buffer stocks
1. Provides an effective price support to farmers.
2. Meets social objective of distributing subsidised food grains to
economically vulnerable sections of society.
3. Acts as reserve to stabilise markets for basic food grains.
4. Crucial for nutritional security and for implementing the National
Food Security Act 2013.
3. Present loopholes in procurement
1. Excess procurement, transportation and distribution costs adds to
increasing subsidy burden. Compared to the mandated
 requirement of around 25 Million Tonnes (MT) of buffer stock,
FCI was holding around 55 MT of wheat and rice.
2. Since the storage is not commensurate with procurement, there is
high degree of wastage due to climatic conditions, pest attacks,
degradation, etc.
3. Crowding out of private trade from the market. This has impacted
prices in the open market in an adverse manner.
4. The benefits of procurement have not gone to larger number of
farmers beyond a few states. Only 6 percent of farmers could sell
their produce to agencies.
5. FCI has no control over MSP and issue prices. The successive
governments have set the MSP high and issue price low as a
populist measure. This has led to a increasing food subsidy.
6. It has caused imbalances in the national production basket where
pulses crop has become secondary choices for farmers.
7. Diversions of grains from PDS amounted to 46.7 percent in 2011-
12 based on NSSO’s data.
8. Despite having buffer stocks in much excess of stocking norms,
this system has failed to remove malnutrition, and bring stability
in food grain prices.
4. Reforms in buffer stocking
1. A transparent liquidation policy is the need of hour, which should
automatically kick-in when FCI is faced with surplus stocks over
the buffer norms.
2. Breaking FCI into two function specific agencies such as
Procurement, Logistics and Distribution. This will increase the
efficiency of FCI. Ex: Power sector.
3. Need to provide greater flexibility to FCI to operate in Open
Market Sale Scheme (OMSS) and export markets.
4. FCI should outsource its stocking operations to various agencies
such as Central Warehousing Corporation, State Warehousing
Corporation, and even state governments that are building silos
through private sector.
5. India needs more bulk handling facilities and better mechanisation
in handling buffer stocks. For example, Cover and Plinth (CAP)
storage needs to be used.
 6. Decentralised procuring should be encouraged to cut distribution
costs and also to cover more number of farmers.
7. There should be a cap on MSP and issue prices so that food
subsidy doesn’t increase too much.
8. As soon as the stock required for the implementation of Food
Security Bill is procured, Minimum Support Price (MSP) should
cease and private entities should be allowed to procure. Now FCI
has almost double the requirement buffer stock. Capping
procurement at the requirement level will vastly reduce food
subsidy.
5. Shanta kumar committee recommendations
1. Stop procurement from grain surplus states like Punjab, Haryana,
etc., because those states have well experience in manpower
management and can procure grain for their own. Shift its focus to
eastern Uttar Pradesh, Bihar, Assam and West Bengal whose State
governments are inept and lack infrastructure to procure grains.
2. The FCI can purchase grain above its NFSA needs from surplus
states, but the actual purchasing should be handled by the states
themselves. Shifting procurement to eastern states will help fuel
another green revolution.
3. The Government of India must provide better price support
operations for pulses and oilseeds and dovetail their MSP policy
with trade policy so that their landed costs are not below their
MSP.
4. Cash transfers in PDS should be gradually introduced. The panel
moots shifting to cash payments for inputs like fertilisers and
rationalising the price of urea.
5. FCI should gradually outsource grain storage function to central
warehousing corporation (CWC), state warehousing corporation
(SWC), and private sector. Also overhaul the grain storage
function. Don’t store grain in cover and plinth godowns. Convert
them into silos with mechanised assemblies.
6. The panel suggests amending the NFSA and reducing the
subsidised population to 40 percent instead of the current 67
percent.
7. Immediately after the procurement, give 6 months ration to poor
beneficiaries, with cheap grain bins for storage. FCI will have to
 store less grain in its godowns. People themselves will take care of
storage.
8. Report pushes for a national warehousing system under a PPP
model to reduce wasteful storage and transport costs. Farmers can
deposit their produce at these warehouses and receive up to 80 per
cent of the MSP value of this produce from banks.
6. NITI Aayog reforms on MSP
1. Awareness among the farmers needs to be increased and the
information should be timely disseminated till the lowest level.
2. To remove distortion in the MSP system, NITI has suggested the
introduction of ‘Price Deficiency Payment’ system. Under it, a
subsidy would be provided on other targeted produce in case the
price falls below an MSP linked threshold.
3. Delay in MSP payments have negative effects on the framers
which need to be corrected. MSP should be announced well in
advance of the sowing season so as to enable the farmers to plan
their cropping.
4. The procurement centers should be in the village itself to avoid
transportation costs.
5. There should be meaningful consultations with the State
Government, both on the methodology of computation of MSP as
well as on the implementation.
6. The criteria of fixing MSP should be current year’s data and
based on more meaningful criteria rather than the historical costs.
7. Improved facilities at procurement centres, such as drying yards,
weighing bridges, toilets, etc. should be provided to the farmers.
More godowns should be set up and maintained properly for
better storage and reduction of wastage.
8. The MSP scheme requires a complete overhaul in those states
where the impact of the scheme ranges from nil to at best
marginal to ensure that MSP continue to as an important
instrument.
7. Arvind Subramaniam committee on pulses
1. Encourage states to delist pulses from their APMC.
2. Eliminate export ban on pulses and stock limits which coupled
with weak procurement forces farmers to sell most of their output
at market prices that are well below MSP.
 3. Create a new institution as a Public Private Partnership (PPP) to
compete with and complement existing institutions to procure
stock and dispose pulses.
4. Encourage development of GM technologies and grant
expeditious approval to indigenously developed new varieties of
pulses.

Public distribution system

1. The concept of PDS in India emerged during 1942 as a result of

shortage of food grains during World War. After independence in 1947,
major aim of Government of India has been to deliver food security to
all. With this objective, Public distribution system was started.
2. Major goals of PDS
1. Make goods available to consumers, especially the disadvantaged
sections of society at fair prices. Ensure social justice in
distribution of basic necessities of life.
2. Check and prevent hoarding and black marketing in essential
commodities.
3. Even out fluctuations in prices and availability of mass
consumption goods.
4. Support poverty alleviation programmes, particularly, rural
employment programmes like mid-day meals, ICDS, etc.
3. Progress in PDS
1. Chattisgarh made huge supply chain changes by adopting de-
privatisation of PDS shops, clear entitlements, grievance redressal
system, GPS enabled transportation, doorstep delivery, tight
monitoring and surveillance. Through these reforms Chattisgarh
was able to restrict leakages below 5%. Chattisgarh model was
emulated by Odisha and others.
2. According to the official data, all the existing 23 crore ration cards
have been digitised and most of the cards have been seeded with
Aadhaar numbers. The government has stated that 2.75 crore
bogus ration cards have been deleted during 2013-17 which has
ensured better targeting of beneficiaries.
3. In order to ensure transparency in grain sale process in the PDS,
 the electronic Point of Sale (ePoS) machines have been installed
in 3.88 lakh fair prices shops (FPSs) out of nearly 5.33 lakh FPSs
in the country.
4. But in case of cash transfers, where a high level committee had
recommended gradual introduction of cash transfers in the PDS,
starting with large cities with more than 1 million population;
extending it to grain-surplus states, and then giving an option to
deficit states to opt for cash or physical grain distribution; the
progress has been minimal.
4. Issues in implementation of TPDS
1. Identification of eligible households. There may be inclusion and
exclusion errors possible in targeted schemes.
2. Trends in procurement vis-a-vis production of food grains.
3. Storage space for food grains.
4. Food subsidy which is already huge.
5. Leakage of food grains.
5. Limitations of PDS
1. There is no set criteria for determining BPL and APL families.
This leads to large exclusion errors and also increase corruption.
2. There is huge black marketing in PDS. Food grains are diverted
by Fair Price Shops holder and mediator.
3. There are growing instances of the consumers receiving inferior
quality food grains in the ration shops.
4. Many BPL families are not able to acquire ration cards either
because they are seasonal migrant workers or because they live in
unauthorised colonies.
5. Lack of power to marketing officers in cancelling licence, only
higher authorities are competent enough to do so, which reduces
the deterrent effect.
6. Poor grievance redressal due to poor empathy of administrator
and influence of dealers.
7. Public distribution system includes only few food grains such as
wheat and rice, it does not fulfil the requirement of complete
nutrition.
8. Uneven distribution of food generation, procurement and
distribution. For example, north eastern states are very far from
 Punjab and Haryana, from where wheat is procured. To transport
food grains from Punjab to far flung areas in North east will entail
cost and time both.
6. Suggestions
1. A white paper should be prepared on the procedure for selection
of BPL, and clear policy should be laid down by the Ministry of
Rural Development.
2. FPS (Fair Price Shop) should be allotted to people who are
already running a viable shop in the area. This will ensure that the
shop remains open on all working days.
3. DBT can be introduced to reduce leakages and to improve service
delivery.
4. Digitisation of ration cards can help in modernising the PDS. A
number of states are already innovating in PDS implementation,
and improved performance can be seen in some cases.

Decentralised procurement

1. DCP was introduced in 1997-98 with the objective of reducing cost of

procurement, encouraging local procurement thereby extending benefits
of MSP to local farmers and expanding procurement volumes.
2. Mechanism of DCP
1. States undertake direct purchase of food grains on behalf of
centre. They procure for central pool, store and distribute food
grains for welfare schemes based on allocation made by centre.
2. Surplus is handed over to FCI, while deficit is met by FCI
directly. Centre meets expenditure incurred by states on
procurement. It also monitors quality of food grains and helps to
ensure smooth procurement. States are encouraged but not
mandated to participate.
3. Problems
1. Issue of bonus declared by few states over and above MSP. This
distorts market, driving away private buyers, leaving entire
responsibility of purchase only on Government. This has resulted
in over procurement in these states.
2. About only 6% of farmers sell their produce to government.
Others are either unaware or lack access to MSP system. Majorly
 big farmers in few states have benefited from MSP procurement
system.
3. In last few years, storage has been double the prescribed buffer
limits. It has led to shortage in open market and thereby inflation
and wastage due to FCI’s limited storage capacity.
4. About 40-60% PDS grains are siphoned off to black market.
5. Procurement system is highly skewed in favour of wheat and rice
which has negatively affected the production of other crops such
as pulses.
4. What reforms can be made
1. In states where procurement system is robust, procurement and
distribution should be left to states while FCI should procure from
other states.
2. FCI should sell stock over buffer in open market.
3. FCI should gradually outsource grain storage function to central
warehousing corporation (CWC), state warehousing corporation
(SWC), and private players.
4. End to End computerisation and online tracking of entire system
from procurement to retail distribution.
5. Implementing DBT helps in curbing black market.
6. If a surplus state declares bonus above MSP, centre should limit
procurement for TPDS allocations of that State and provide
acquisition and distribution subsidy to state accordingly.
7. State will be responsible for disposal of surplus and accrued
financial burden. Centre has taken steps in this direction.
8. Currently procurement system is open ended i.e. government is
committed to buy whatever farmers wish to sell. Gradual
movement to closed-ended procurement process would help
where government buys according to its distribution requirement.
9. Awareness and opening more purchase centres to improve
outreach of MSP-system.
5. These reforms require strong political will and spirit of cooperative
federalism to implement and function. However, they can streamline
procurement process, reduce wastage while catering to the need of food
security and farmer welfare.
Farm subsidies

1. As per a report published by the SBI, central government currently

spends around ₹981 billion in form of farm subsidies, which is roughly
2.9% of India’s GDP. But India’s agricultural subsidy is less than 10
percent of the market value of total agricultural production. It is far less
compared to the developed countries.
2.

3. Different types of farm subsidies

1. Fertiliser subsidy: Distribution of cheap chemical or non-
chemical fertilisers among the farmers. Fertiliser subsidy applies
to fertilisers such as Urea, potash, phosphate, etc.
2. Irrigation subsidy: This may work through provisions of public
goods such as canals, dams which the government constructs and
charges low prices or no prices at all for their use from the
farmers. It may also be through cheap private irrigation equipment
such as pump sets.
3. Power subsidy: The electricity subsidies imply that the
government charges low rates for the electricity supplied to the
farmers. Power subsidy acts as an incentive to farmers to invest in
pump sets, bore-wells, etc.
4. Seed subsidies: High yielding seeds (HYVs) can be provided by
the government at low prices. The research and development
activities needed to produce such productive seeds are also
 undertaken by the Government.
5. Credit subsidy: For good availability of credit at rural areas
Government has started more banking operations in rural areas.
The interest rates are also maintained low through subsidisation
schemes, and the terms of credit (collateral requirements) are
relaxed for the poor.
6. Price subsidy: Through MSP regime Government promises to
buy the crop from the farmers at a price which is higher than the
market price. Such procurement by the government also has a
long run impact. It encourages the farmers to grow crops which
are regularly procured.
7. Infrastructural subsidy: Good roads, storage facilities, power,
information about the market, transportation to the ports, etc., are
vital for carrying out production and sale operations.
8. Export subsidies: When a farmer or exporter sells agricultural
products in foreign market, he earns money for himself, as well as
foreign exchange for the country. Subsides provided to encourage
exports are referred as export subsidies.
4. Positives
1. Agricultural subsidies particularly MSP incentivises production
by farmers. Increasing production leads to lowering of prices.
2. Food security programmes benefits poor consumers as food is
made much affordable through PDS.
3. It helps government to focus on certain areas and ensure their
growth such as subsidies provided to solar electricity production
and deployment.
4. Subsidies provided to renewable energy sector has led to making
the technology economically viable. Large scale deployment of
these technologies would lead to offsetting some of the impact of
climate change.
5. Support given to organic farming through the Paramparagat Krishi
Vikas Yojana would offset some of the soil damage caused due to
increasing use of pesticides and fertilizers.
5. Negatives
1. It leads to increased wastage and over exploitation. Subsidised
electricity for water pumps in Punjab has led to rapidly declining
water tables in Punjab.
 [Link] leads to increased fiscal deficit. This is especially true for
subsidies which the economic survey calls as subsidies for the
rich. This has the effect of crowding out of private investment.
3. MSP also leads to increased inflation.
4. Subsidies also lead to distortion of market forces based on supply
and demand. For instance, subsidies provided for urea has led to
overuse of urea.
5. It has skewed cropping patterns. High MSP prices for rice and
wheat has shifted production towards them.
6. Subsidies provided on petrol and diesel lead to their unmitigated
use which leads to environmental damage.
6. Way forward
1. India and China have demanded the developed nations at WTO to
cut down the farm subsidies under the agreed multilateral trade
rules. In WTO parlance, the subsidies are called Aggregate
Measurement of Support (AMS) or Amber Box support.
2. India and China believe that elimination of AMS should be the
starting point of reforms rather than seeking reduction of subsidies
by developing countries.

Taxing agriculture

1. Income tax act 1961 exempts agricultural income from being taxed.
Recently NITI Ayoog has recommended for some form of agriculture
taxation.
2. Benefits of taxing agricultural income
1. It will increase the Tax to GDP ratio, which is 16.6% when
compared to 35% in OECD countries. The tax base in India is
around 1.5% of the population only.
2. Rich farmers above an income threshold can be taxed which will
be a step towards economic equity.
3. It would curb evasion of taxes by falsely showing income as
agricultural income.
4. Taxation requires systematic maintenance of accounts which
would help the farmers to secure need-based loans on documented
records.
 5. It will help banks to reduce NPAs, as they will have clear idea of
defaulters.
6. It helps Govt to target schemes such as MNREGA to small
farmers. Account keeping will help the Government to track the
improvement and growth in the agricultural sector.
3. Concerns
1. Agricultural income is highly monsoon dependent and therefore
taxing agricultural income may become a negative externality.
2. Can create a panic among small farmers who does not have
understanding about tax system. Farmers will face huge difficulty
in understanding the tax policy and filing tax returns.
3. Fragmentation of lands among family members will take place to
avoid taxes.
4. Taxing of agricultural income can lead to increase in prices to
maintain the profits.
5. High income can project land lords as good farmers in front of
banks as compared to small farmers.
6. Establishing an institutional framework and implementing the tax
system in the rural areas with the available resources is a huge
task with the existing infrastructure and man power available.
4. There is a need of prioritising the data collection on farmers’ incomes.
The data needs to be collected at the village level and then a threshold
can be set to tax the agricultural income. Considering alternatives like
integrating farmers with crop insurance system and tracking those
records to access the productivity of the lands can be an alternative
while the required infrastructure is being developed.

APMC

1. State governments enacted APMC act in 1950s or so to bring

transparency and end discretion of traders. This was directed toward
ensuring food security, remunerative prices to farmers and fair prices to
consumers. However this act has worked contrary to almost every
stated objective.
2. Under the APMC acts, States are geographically divided in to markets
which are headed by market committees and any production in that area
 shall be brought to a market committee for sale. This is applicable to
notified agricultural products which differs from state to state. In this
Mandi there are commissions agents who hold license and are allotted a
shop in the market.
3. Shortcomings in APMC
1. Monopoly of any trade is bad, whether it is by some MNC
corporation by government or by any APMC. It deprives farmers
from better customers, and consumers from original suppliers.
2. It is quite often seen that agents in an APMC get together to form
a cartel and deliberately restraint from higher bidding. Produce is
procured at reduced price and sold at higher price. Spoils are then
shared by participants, leaving farmers in lurch.
3. License fee in these markets are highly prohibitive. In many
markets farmers were not allowed to operate. Further, license fee
is quite high which keeps away competition. At most places only
a group of elite operates in APMC.
4. APMC play dual role of regulator and market. Consequently its
role as regulator is undermined by vested interest in lucrative
trade. They despite of inefficiency won’t let go any control.
Generally, member and chairman are nominated out of the agents
operating in that market.
5. To avoid tax, some traders do not give sale slips to farmers. As a
result, it is difficult for the farmer to prove his income to get loans
from banks.
6. Agents have tendency to block a part of payment for unexplained
or fictitious reasons.
4. Model APMC
1. Farmer doesn’t need to bring his produce to APMC Mandi. He
can directly sell it to whomever he wants. It allows alternate
markets such as direct purchase centers, private market yards.
2. It increased responsibility of APMCs by mandating payment
should be made on day of sale itself. Also quantity brought and
prices should be displayed at the gate.
3. It allows PPP in the management and development of agricultural
markets in the country for post-harvest handling, cold storage,
pre-cooling facilities, pack houses etc.
4. It not only allows, but strongly advocates for contract farming. It
 also provides for dispute resolution mechanism. It provides
abolishment of commission agent system. Payments will be made
for facilities such as grading, sorting, and processing. It also
ensures transparency in pricing and transactions in the market.
5. Not all states adopted the Model APMC Act. Because of vested
interests of various pressure groups such as middleman and
traders. Model APMC act is not uniformly adopted, states have
made their own modifications.
6. Some states have also created entry barriers by prescribing either
prohibitive license fees for setting up such markets, or the
minimum distance between private markets and APMC markets.
5. Other reforms
1. Horticulture should be specifically excluded from definitions of
APMC. Because Mandis are main culprits for inflation and
wastage of fruits and veggies.
2. All APMCs Mandis should introduce electronic auction platform.
This can put an end to cartelisation.
3. Open membership of APMC by encouraging wholesalers and
retailers to enter into transactions with the growers. This will
reduce middlemen and reduce final prices.
4. Anyone should be allowed to trade in APMC market. Licensing
system should be abolished. The APMC Market Committee
should only fix the transaction fee and keep a Bank Guarantee
from traders to ensure that the farmers’ payment is not affected.
5. Encourage farmer’s market, where farmer can sell his produce to
final consumers. Ex: Rythu bazar in Andhra Pradesh, Apni Mandi
in Punjab. Initiatives like ITC e-choupal have significantly
improved farmer’s income.
6. Encourage Virtual Markets. Example of such virtual markets are
Future exchange, Spot Exchange, Warehouse Receipt System and
Web Marketing. In these Farmer will first deposit his produce to a
nominated warehouse and gets a receipt. This receipt can be
traded by the participant on the e-mandi across the country.

National Agricultural Market (NAM)

1. As per the economic survey, India has around 585 regulated primary
 agriculture markets. These are governed by respective APMC act of the
states, which have led to market segmentation, etc. NAM is an online
platform with a physical market or mandi at the backend. NAM seeks
to leverage the physical infrastructure of mandis through an online
trading portal, enabling buyers situated even outside the state to
participate in trading at the local level.
2. Need for national markets
1. In addition to the levies charged by the states, commission agents
charge a market fee. Thus, it is a double whammy for farmers.
These distort markets. The integration of all major mandis into the
NAM e-platform would ensure common procedures for issue of
licenses, levy of fee and movement of produce.
2. APMC markets are responsible for cartelisation of produce,
exploitation of farmers. NAM increases the choice for a farmer at
the mandi. Local traders and also traders on the electronic
platform sitting in other States can bid for the produce.
3. With elimination of middlemen, the share price for farmers will
increase. National market will increase the bargaining power of
the farmer.
4. The NAM will also facilitate the emergence of value chains in
major agricultural commodities across the country and help to
promote scientific storage and movement of agricultural
goods. Respective APMC mandis will have to ensure quality
standards of agricultural goods sold through the e-platform.
5. A state regulatory authority to oversee the mechanism for
payment receipts will help farmers secure agriculture credit from
banks under various schemes.
6. Scope for contract farming whereby a farmer may be supplied
with the best technologies funded by big corporates.
3. Other problems in agricultural marketing
1. Technology illiteracy: Farmers need to be digitally educated to
reap benefits of e-NAM. Rural areas lack technology
infrastructure and connectivity solution can be bridging it with
digital India.
2. Infrastructure: Need of infrastructure for connectivity (Rurban
clusters, Gram sadak yojana, waterways), warehousing (cold
storage), grading, value addition through food processing etc.
 [Link] in state list: Many states fail to implement the
guidelines of centre Eg: Model APMC act , eNAM are still not
adopted by all states.
4. Lack of credit facilities: Due to which a farmer has to sell his
produce immediately after the crop is ready. Adequate credit
facilities can enable him to withhold his produce and run his
household till he gets a better price.
5. Lack of market information: By way of prevailing condition in
the market as well as prices prevailing.
6. WTO agreement: Need to focus on subsidy issues for betterment
and protection of agriculture market from overseas competition
which require changes in changes in trade and commerce.
4. Measures to reform marketing
1. e-NAM to connect all APMC mandis across states through an
electronic portal, thus benefitting both farmers and consumers.
2. Model Agricultural Produce and Livestock Marketing Act, 2017
to assist farmers to directly connect buyers to enable them to
discover the optimum price for their commodities.
3. Model Contract Farming and Services Act, 2018 to integrate
farmers with bulk purchasers including exporters, agro- industries
etc. for better price realization through mitigation of market and
price risks to the farmers and ensuring smooth agro raw material
supply to the agro industries.
4. Gramin Agricultural Markets (GrAMs) so as to promote 22,000
number of retail markets in close proximity of farm gate.
5. Agriculture export policy, 2018 which aims to double agriculture
exports from $30 billion to $ 60 billion by 2022.
6. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-
AASHA) to ensure remunerative prices to farmers for their non-
rice and non-wheat produce.
7. Development and Strengthening of Grading and Standardization
System: Assigning ‘AGMARK’ to graded products which ensure
good quality and also command a better price in the market.
8. Farmer Producer Organisation (FPO): SFAC has been promoting
Agri-Business by encouraging institutional and private sector
investments and linkages to ensure the empowerment of all
 farmers in the country.
9. PM Kisan SAMPADA Yojana for creation of modern
infrastructure with efficient supply chain management from farm
gate to retail outlet.
5. Challenges in e-NAM
1. Introduction of NAM does not necessarily lead to
disintermediation. In e-auction mandis such as Gulbarga,
commission agents are still vital actors in the process, from
sampling to dispatch.
2. Problems of grading and standardisation of crops being sold
through NAM is an issue.
3. Middle men provide real and substantive services such as credit
facilities and crop loans to farmers in a timely manner. The
farmers dependence on them is mutually beneficial. It needs to be
regulated and not abolished altogether.
4. Implementation of NAM requires states support. The overbearing
presence of state politicians in APMC raises questions whether
the states will be willing to reform their APMC Act and
implement NAM properly.
5. Electronic trading has been limited to respective mandis within a
state meaning farmers cannot yet access sellers outside the mandi,
be it within the state or across the country.
6. Model APMC has two serious limitations
1. First, the contract sponsors or the private entities setting up
markets are required to pay the market fee to the APMCs, even if
they provide no services. This is akin to the tax charged by the
APMC.
2. Second, though the model APMC act provides for the creation of
markets by private sector, it is inadequate to create competition.
The owner of the private market still collects the APMC fees, for
and on behalf of the APMC, in addition to the fee that he might
charge for providing trading platform and other services, like
loading, unloading, grading, weighing and so on.
7. Road map for creating national market
1. One possibility would be to incentivise the states (NITI transfers)
to drop fruits and vegetables from the APMC schedule of
regulated commodities.
 2. Create state wide common markets by providing for common
registration of market intermediaries across market yards within
the state on the lines of the Karnataka model.
3. Provide policy support for setting up of infrastructure, making
land available and so on for alternative or special markets in
private sector, since the players in the private sector cannot viably
compete with the APMCs.
4. Liberalisation of FDI in retail could create the possibilities for
filling in the investment and infrastructure deficit which results in
supply chain inefficiencies.
5. Innovative solutions taken by Karnataka like NCDEX (National
Commodity and Derivatives Exchange) Spot Exchange for
automation of auction process in mandis, Rashtriya e-Market
Services (ReMS) etc., can be followed in other states.
8. Issues in storage and transportation infrastructure
1. Regional disparity of storage capacity: 64% of FCI
infrastructure is located in the large procurement states like
Punjab, Haryana, Andhra Pradesh, Uttar Pradesh and
Chhattisgarh.
2. The poor condition of storage facilities: Warehouses
infrastructure is poorly built which may sometime lead to water
percolation through ceiling and walls, which damage the
produced. Inadequate infrastructure for storage. Skewed
distribution of this capacity is another issue, with North India
having access to 60% of the total storage infrastructure.
3. Low private investment: Due to low returns on investment, this
sector is less attractive to private companies.
4. Lack of cold storage infrastructure: Most existing cold
storages are single commodity storages, resulting in their
capacities lying idle for up to six months a year. The cold-chain
infrastructure is also unevenly distributed among states. Lack of
refrigerated Trucks: Low investment is seen in refrigerated
trucks which is a must for cold storage logistics.
5. Poor road connectivity: Road connectivity is weak, especially in
hilly areas. Poor maintenance of rural roads is a major constraint
as well. Especially in case of a perishable item, it causes huge loss
to farmers.
 6. Cost: The transportation and storage cost in India is very high
compared to developed countries. High cost reduces the
competitiveness of Indian agricultural produce both in domestic as
well as the export market.
9. Government initiatives
1. PM Gram Sadak Yojana to connect the hinterlands for better
transport connectivity.
2. Operation Greens to promote agri-logistics, processing facilities
and professional management. But it is only to seek to stabilise the
supply of Tomato, Onion and Potato (TOP) crops, excluding other
farm produce.
3. The Private Entrepreneur Guarantee Scheme to incentivise private
investment for construction of warehouses, with an FCI guarantee
to hire them for 10 years, assuring a fair return on investment by
the entrepreneur.
4. Tax incentive is given to private players so they take an active
interest in this sector.
5. The Warehousing Act which will promote negotiability of
warehousing receipts.
6. Inclusion of agri-warehousing under priority sector lending by
RBI.
10. Unless some very drastic measures are taken to improve the storage
capacity of food grains, the wastage of food grains cannot be curbed
which otherwise could be utilized for feeding millions of poor people
and to achieve SDG 2.

Food processing

1. Any form of value addition in food in the form of sorting, grading,

packaging, branding etc., is called food processing. Food processing
not merely adds value to the agro products, but also increases their
utility. Only 2% of the food is processed in India.
2. Problems of food wastage
1. About 20 crore people go to bed hungry and 7,000 people die of
hunger every day. Wastage of food is not less than a social
delinquency.
 2. India loses Rs. 58,000 crore every year because of wastage of
food.
3. The energy spent over wasted food results in 3.3 billion tonnes of
carbon dioxide production every year. Decay also leads to harmful
emission of other gases in the atmosphere.
4. The wastage of food entails loss of considerable amount of
resources in the form of inputs used during production.
3. Advantages of FPI
1. FPI is employment intensive industry. Much of the employment
will be created into rural India. This can remedy problem of
distress migration. The sector employs almost 13% of the
workforce in the organised sector and 13.7% of the workforce in
the unorganised sector and contributes 9% of manufacturing value
addition.
2. India is net exporter of agricultural products. But value addition of
Indian product remains quite low. Food processing industry can
increase our export potential.
3. It will help farmers get better prices for their produce, thus
improving their income levels. It will stabilise prices by creating
an assured demand for agricultural produce. It will also eliminate
undue advantage currently accruing to middlemen at the cost of
farmer’s remuneration.
4. It can reduce food wastage and can enhance nation’s food
security. Food processing can reduce packaging, transportation
losses. In fact, 30% of production is wasted (post-harvest losses)
which comes out to be around Rs. 58,000 crore annually.
5. It will help develop vital linkages between industry and
agriculture.
6. Growing urban culture, nuclear families, working couples and
purchasing power makes case for processed food. Consumption in
India is gradually tilting towards packaged and ready to eat foods.
4. Obstacles to food processing
1. Most of our food processing units are small scale, which leads to
problem of poor economies of scale.
2. Low level of linkage between the industry and the farmers for the
raw materials.
3. Multiplicity of laws and rules which leads to contradictions and
 delays. Taxes on processed food in India are among the highest in
the world.
4. High cost of raw material and presence of intermediaries due to
APMC acts.
5. There is lack of faster and efficient transportation, leads to
wastage of agricultural goods. Inadequate cold chain
infrastructure and inadequate logistics. Only 10% of food is
covered by cold storage facilities in India.
6. Indian agriculture focuses on traditional crops rather commercial
crops desired by the market. Variation in quality is another
impediment.
7. Insufficient number of laboratories. Most laboratories at sea ports
are not fully equipped to handle testing of imported products.
Lack of trained manpower. Only very few universities offer
special courses for food processing and entrepreneurship.
8. Indians prefer freshly cooked products as compared to packaged
products. because of traditional mindset.
5. Aims of National mission on food processing
1. Enhancing capacity of food processing industries through new
technologies. Modernisation of food processing industries.
2. Establishing of mega food parks, integrated cold chains and
preservation and modernization of abattoirs.
3. Improving the quality of food products as per the international
standards. Encouraging the FPI to adopt food safety and quality
assurance mechanism such as Total Quality Management (TQM).
4. Reduce wastage of agricultural produce.
5. It also has provision for promoting skill development,
entrepreneurship and training in post-harvest management.
6. Draft National policy on food processing, 2017
1. It advocates adoption of sustainable environmental practices like
energy generation from bio-waste.
2. For Quality, health and safety of products, the policy suggests
compliance with FSSAI Act 2006.
3. States should create an e-platform to facilitate all the clearances in
a time bound manner.
4. The policy recommends following a cluster approach to tap the
 benefits of economies of scale in food processing.
5. Ceiling on Land Lease act should be raised or abolished to
encourage entrepreneurs procure lands for bigger units. Land
should be allotted on priority to Mega food parks (MFP).
6. Technology adoption like barcoding, RFID tags etc. should be
supported. It also aims to promote entrepreneurship in this sector
by reforming labour laws, promoting incubation centres, setup
skilling centres in each state etc.
7. Crop Colonies
1. Chief Minister K. Chandrasekhar Rao asked the officials to come
up with plans to divide cultivable land in the State into crop
colonies so as to establish food processing units not only to make
value addition to the produce of the farmers and ensure them
improved income but also to provide unadulterated and quality
processed foods at competitive prices.
8. Upstream and downstream integration
1. Suppliers to a producers lie on upstream side, where as customers
lie on downstream side. This will change according person under
observation. For a farmer, supplier of seeds and fertilisers lie on
upstream, while cold store owners, farm contractors, mill owners,
traders in agro output lies on downstream.
2. When a particular person in supply chain assume role of two
levels it is said integration.
3. Backward integration involves company expanding its activities to
upstream areas. Company aims to get raw material at cheap rates,
uniform quality, steady supply and eliminate any middlemen. Ex:
Amul sets up dairy farmers cooperative in villages to collect milk.
4. Forward integration refers to company expanding its activities to
downstream areas. Company aims to get more control over sales,
consumer-contact and eliminate any middlemen. Ex: Nike,
Adidas, Apple have their own retail outlets in big cities.
5. When company’s backward and forward integration is so good
that it practically runs everything from making raw material to
selling final product to final customer. For example, oil giants
such as Shell have their own oil wells, refineries and retail petrol
pumps.
6. In farming and food processing, vertical integration can work
 wonders. For this farmer needs financial and technical support.
Agriculture in India already is over employed. This with seasonal
nature of majority of farming crops gives farmers a compelling
reason to get into food processing business.
9. Health effects
1. Brands such as Maggi have positioned themselves as a quick fix
to hunger especially in case of urban India living a fast lifestyle.
In such context, the excess of Lead found in Maggi last year
which leads to diseases like Painter’s Colic, damage to neural
system etc pose a huge risk.
2. Such food are rich in sugar content thereby leading to diseases
such as diabetes, obesity, etc.
3. Trans fat contained in such food items leads to obesity and heart
issues.
4. The packaging on processed food products is often misleading.
For instance, Red Bull, an energy drink contains huge dosage of
caffeine and sucrose having harmful effects.
5. The issue of false advertisement was in news in India recently
when the question of celebrity liability was raised during the
Maggi controversy.
10. How Government can regulate it
1. FSSAI currently goes for individual testing of each processed
food item for which it does not have adequate capacity. Instead it
can follow the US model where the Food Safety Authority
approves ingredients to be added across the range of products.
2. There is also a need to promote the more nutritious jowar, bajra,
ragi with enhanced impetus to the already functioning Nutri-
cereals scheme under Rashtriya Krishi Vikas Yojana.
3. The government can also follow the Kerala model to impose a fat
tax (sin tax) on food items which are harmful for health.
4. There is a need to create awareness about the importance of well
balanced diet as more and more youngsters have now started
becoming dependent on junk food and processed food.
11. Mega food park (MFP)
1. Mega food parks are to be based on cluster approach. In India
there are regional horticultural crops, which are dominantly grown
in a particular area. In these areas there is generally cluster of
 similar farmers, factories, and traders etc., who dominantly deal in
same agricultural product.
2. Scheme aims to strengthen such clusters by providing world class
infrastructure facilities. This will result in smoothening of supply
chain from farm to market.
3. Hub and spoke model is adopted, as per which there will be a
strong Central Processing Centre (CPCs), which will cater needs
of surrounding areas. In surrounding areas, there will be smaller
primary processing centers (PPCs) which will be fed from
numerous collection centers (CCs).
4. These collection centers will have direct interface with the farmer,
farmer groups, or self-help groups. This will lead to vertical
integration in activities of that particular area.
12. Benefits of Mega food parks
1. Will benefit 6000 farmers directly and 25000-30000 farmers
indirectly.
2. The clearly demarcated task domains reduces confusion and
increases efficiency.
3. Will generate nearly 40,000 direct and indirect jobs in the form of
industrial work force, people employed in supply chain, etc. It has
potential to reduce rural-urban migration, as it creates jobs in rural
areas.
4. Will accommodate 30-40 food processing industries in it and will
have annual turnover of 500 crore.
5. Will provide efficient supply chain management from farm gate to
retail outlet, which will reduce farmers operational costs as
farmers can utilise the cold storages, ripening chambers and ware
houses.
6. Good transportation facilities such as reefer trucks and vans.
13. Agri Export Zones (AEZ)
1. To give thrust to export of agro products, new concept of Agri
export zones was brought in 2001. APEDA has been nominated as
the Nodal Agency to coordinate the efforts on the part of Central
Govt. negotiations.
2. The cluster approach of identifying the potential products and
geographical region in which these products are grown.
3. Adopting an end-to-end approach of integrating the entire process
right from the stage of production till it reaches the market. There
 would also be a need to identify problems encountered at each
stage.
4. Identification of such potential crops is responsibility of state
governments. Projects in such areas for identified crops will be
eligible for financial assistance and certain fiscal incentives.
14. Problems in agri-export zones
1. Government agencies don’t take ownership or responsibility.
2. Villagers and field officers are unaware about the scheme and its
conceptual framework.
3. The design of AEZ itself doesn’t have project orientation.
4. Lack of coordination or monitoring in AEZs.
5. The investment made by central and state government has not
materialised into real useful assets on the ground.
6. Indiscreet proliferation of AEZs in certain states. WB,
Maharashtra have multiple Agro export zones while Odisha barely
got one AEZ and that too in 2013.

Fertiliser policy

1. Economic survey has mentioned that the fertiliser usage in India is

more than 3 times that of other developed countries.
2. Government interventions in urea sector
1. Controlled MRP: Government fixes MRP for urea to be sold to
farmers. It has to reduce prices.
2. Production subsidy: 30 specific urea manufactures are given
subsidies on cost plus basis i.e. only these plants are subsidised to
the extent of their cost of production above certain threshold. It is
done for self sufficiency.
3. Canalisation: Import restrictions, where only 3 agencies are
allowed to import urea and they are subsidised for imports.
4. Physical control: About 50% of urea is directed i.e government
controls how much to import and where to sell.
3. Major distortions in fertiliser sector
1. Since urea is subsidised only for agriculture, 41% subsidised urea
is diverted to black market for industry and across neighbouring
countries.
 2. The prices of urea are highly regulated in India (subsidy of 0.7%
GDP), on the other hand other nutrient fertilizer like Potash and
Phosphate have high costs. This leads to over utilisation of urea
and neglect of potash and phosphate.
3. Similarly neglect towards micronutrients is also attributed to
pricing policies.
4. Restricted import or canalisation leads to shortage when fertilizer
demands are misestimated. This leads to black marketing.
5. Since subsidy cost is provided to manufacturers, they don’t have
any incentive for cost reduction and introduce efficient
technology.
6. Further pricing policies are helping big farmers and causing
disparity among states. Eg: High use in Punjab. At the same time,
small farmers have to pay a heavy price for black marketed urea.
7. There is large scale unawareness among farmers regarding
judicious fertilizer use. Even NPK ratio of 4:2:1 which was
publicised for long by government is found to be inappropriate for
all regions as per report of Indian Council of Agricultural
Research (ICAR).
8. Even government steps in New Urea Policy 2015 like uniform gas
pricing for all urea manufactures and mandatory Neem coating of
urea though welcome but are aimed at Urea alone.
4. Reforms required
1. One product one price: The 75 percent subsidy on agricultural
urea creates a strong incentive to divert urea to industry and
possibly across the border to Bangladesh and Nepal.
2. Decanalising urea imports: Allowing more agencies to import
urea and giving them more freedom in procurement decision
would allow flexibility in adjusting to demand.
3. Urea under nutrient based subsidy: Nutrient based subsidy
(NBS) scheme would incentive firms to reduce cost and become
more efficient.
4. JAM trinity: Use JAM trinity to check leakages and improve
targeting.
5. Soil health cards: Introduction of Soil Health Cards (SHC) for
scientific soil requirements is a welcome move. To promote
organic farming Government has launched Paramparagat Krishi
 Vikas Yojana.
6. Neem coated urea: Neem Coated Urea to check diversion of urea
from agriculture uses. It also reduces leaching of nitrogen into
soil.
7. Gas price pooling: Under this, price of domestic natural gas is
averaged or pooled with cost of imported LNG to create a uniform
rate for fertilizer plants.
8. Micronutrients: Encourage use of micronutrients by awareness
programmes.
9. Cap on subsides bags: Small farmers would still be able to get
all their urea at subsidised prices but large farmers may have to
pay market prices for some of the urea the buy.
5. Reforms of fertiliser sector would not only help farmers and improve
efficiency in the sector but also show that India is prepared to overcome
exit barriers. Rationalising subsidies would also enable the Government
to spend on more productive areas like drip irrigation, PM Gram Sadak
Yojana etc.
6. Suitability of fertiliser sector for DBT
1. Fertilizer sector has high leakages of about 40%. DBT can help in
prevention of leakages.
2. Central government control over fertiliser sector is high. This
minimises administrative complexity.
3. Government has a real time Fertilizer Monitoring System (FMS)
that monitors the fertilizer supply chains.
4. Economic survey considers it ideal to introduce DBT in fertilizer
sector with BAPU, etc.
5. With respect to fertilizer subsidy, the beneficiaries and
entitlements are not clearly defined.
6. Subsidy in case of Urea is more than half its MRP. Therefore,
farmer may be burdened financially to give MRP and subsidy
upfront to receive the DBT afterwards.
7. Significant part of cultivation is today done by tenant farmers or
sharecroppers not owning the land and without any formal lease
agreements. If DBT is effected, there is no way tenant farmers can
access subsidy.
8. Selecting criteria for capping the number of bags on which the
subsidy is payable, based on a reasonable assessment of
 requirement. Capping would depend on the specific fertiliser as
well as the crop and location where it is grown making it more
complicated than the DBT for LPG.

Technology missions

1. Technology missions are Government policies targeting specific sectors

for achieving the set objectives by leveraging technology. The GoI has
launched various technology missions in agriculture sector targeting
various crops like oil seeds, pulses, maize, post harvest technology, etc.
2. Support is provided by the Government in the form of subsidies,
promotion, credit linked subsidy, soft loans, etc. Some technological
missions include missions on citrus fruits, coconut, oilseeds.
3. Importance in agriculture sector
1. Better yield: Productivity is extremely low due to lack of
irrigation facilities, quality of seeds, fertilisers, etc. For example,
technological mission in coconut has led to an increased output
and India leading suppliers of world.
2. Affordable: To large population due to Government initiative.
Ex: Technological Mission in oilseeds have led to large scale
oilseed production in diversified categories.
3. Promote R&D: By further investments, and impetus in
developing related technologies.
4. Remote sensing: Helps in development of modern technology
such as remote sensing etc.
4. Various mission post-independent India
1. Drinking water mission: The idea was to use satellites and the
disciplines of geology, civil engineering and biochemistry for
identifying, extracting and cleansing water supplies. The mission
also included an effort to educate people how to repair broken
pumps.
2. Immunizations: In 1987, India had the highest amount of polio in
the world. They developed a cold chain for handling the vaccines
with industrialists to get refrigeration to all parts of India. Several
years later, India was producing all of their own vaccines. 25
years later, in 2013, India was declared polio-free.
 3. Literacy: The literacy mission was aimed at attacking the serious
problem of mass [Link] was to be achieved by making use
of and extending the television network in rural areas, as well as
by using video and audio cassettes and other methods.
4. Oilseeds: India was importing one billion dollars of cooking oils
each year, when large portions of Indian land are well suited to
growing oil crops. Farmers did not grow these crops as they were
less profitable. Once the intervention on oil was complete, India
was exporting oil cakes at the rate of 600 million per year.
5. Telecommunication: The official goal of the telecom mission
was to improve service, dependability, and accessibility of
telecommunications across the county. This was through
indigenous development, local young talent, rural telecom, digital
switching networks, local manufacturing and privatization. The
official goal is to bring one telephone to every part of the country.
6. Dairy: The goal of the dairy mission was to develop and
implement technologies to improve breeding, animal health, and
fodder and milk production.

Loan waivers

1. Farm loan waivers are one time exercise to relieve farmers from
distress of loan repayment. Such waivers not only delays the long term
solution but aggravates the problem by posing a challenge to state
resources. The Economic Survey warned against farm loan waivers,
saying if all states start offering them, the total burden could swell to
Rs. 2.7 lakh crore.
2. Arguments for loan waivers
1. Along with MSP hikes, it supports rural demand.
2. Rising incidents of farmer suicides due to mounting debt can be re
duced.
3. Farmer’s social distress is increasing and leading to violent
clashes, law and order issues and mental challenges. Ex: Farmers
violent agitation in MP.
4. Lack of profit due to rise of input costs, international crashing of
commodity prices.
3. Arguments against loan waivers
1. Increase fiscal deficit of states and will breach individual deficit
targets. It may lead to diversion of funds from capital spending.
Recently Uttar Pradesh which has slashed capital expenditure by
13 percent to accommodate the loan waiver.
2. It covers only a tiny fraction of farmers and that too with serious
exclusion and inclusion errors. It excludes agricultural labourers
who are even weaker than cultivators in bearing the consequences
of economic distress.
3. It severely erodes the credit culture, with dire long-run
consequences to the banking business. It disincentivise even those
who are capable of repaying loans.
4. In many cases, one household has multiple loans either from
different sources or in the name of different family members,
which entitles it to multiple loan waiving.
5. Politicisation of loan waivers and promote short term thinking
approach.
6. It provides only a partial relief to the indebted farmers as about
half of the institutional borrowing of a cultivator is for non-farm
purposes.
4. Better solutions
1. A more inclusive alternative approach is to identify the vulnerable
farmers based on certain criteria and give an equal amount
financial relief to the vulnerable and distressed families.
2. Improved technology, expansion of irrigation coverage, and crop
diversification towards high value crops are appropriate measures
for raising productivity and farmers income.
3. We need to raise income from agricultural activities and enhance
access to non-farm sources of income.
4. APMC, MSP and NAM reforms for higher profitability and at
least 50% higher price over cost of production. Price deficiency
payment should be introduced.
5. Opportunity for contract farming, export of agriculture produce
for attracting investment and higher returns.
6. Empowering SHG, Gram Sabhas for developing and watching
credit quality of farmers.
 5. Loan waiver is only a sub-optimal solution not intended to solve the
root cause of agricultural distress. Moreover, it would further put a dent
on credit culture of farming community. A holistic action framework
ranging from front end to back end support for agriculture is need of the
hour.

PM-AASHA
[Link]

Infrastructure

1. The basic physical facilities (roads, buildings, power supplies) and

organisational structures (schools, hospitals, banks) needed for
operation of society is known as infrastructure. Infrastructure
contributes to economic development of a country both by increasing
the productivity of the factors of production and improving the quality
of life of its people.
2. Infrastructure sector received a push of Rs 5.97 trillions in the budget
2018-19 up from Rs 1.91 trillion allocated to infrastructure in 2014-15.
3. Relation between infrastructure & economic development
1. Increase in investment: The development of agriculture to a
considerable extent depends on development of irrigation, power
credit, transportation, marketing, education and training, research
and development and other facilities.
2. Industrial development: It also depends on a sound
infrastructure base to a large extent.
3. Employment generation: Infrastructure improves mobility,
productivity and efficiency of labour.
4. Trade & commerce: Infrastructure facilities play a vital role in
the development of trade and commerce. In fact they act as a
platform for the expansion of trade and other
commercial activities at a rapid speed.
5. Thus, infrastructure development can have a significant impact on
economic growth. For low income countries, basic infrastructure
such as water, irrigation and to lesser extent transport are
important. As the economies mature into middle-income category,
the share of power and transport and telecommunications in
infrastructure and investment increases.
6. Also, infrastructure not only contributes towards the development
of backward regions and removal of regional imbalance but also
acts as an instrument of social change. Extensive studies
undertaken by the World Bank show that 1% increase in
investment in the stock of infrastructure leads to a corresponding
1% increase in the GDP of a nation.
4. Private investment is the key driver of the growth. The creation of an
 ecosystem for private investment is critical to enable the virtuous cycle
of investment, demand, exports, growth and jobs.

Roads

1. National Highways, which are the responsibility of the Central

Government, account for around 2 percent of the total road network in
India. National Highways carry around 40% of the total traffic across
the length and breadth of the country. Increased industrial activities,
along with increasing number of two and four wheelers have supported
the growth in the road transport infrastructure projects.
2. The government’s policy to increase private sector participation has
proved to be a boon for the infrastructure industry. Also, the
Government has permitted 100 per cent foreign direct investment (FDI)
in the road sector. Recently, the Government has launched Bharatmala
Pariyojana which is expected to provide NH linkage to 550 districts,
and be a major driver for economic growth in the country.
3. Government initiatives
1. The Government of India plans to introduce a new framework on
renegotiation of Public Private Partnership (PPP) contracts, which
will allow renegotiations based on sector-specific issues and
provide greater flexibility to the parties involved.
2. The Ministry of Road Transport and Highways plans to set up
Land Acquisition (LA) cells across the country, which will work
towards resolving issues related to land acquisition
3. The Ministry of Road Transport and Highways plans to build five
more green-field expressways across the country, which are
expected to reduce travel time.
4. The Cabinet Committee on Economic Affairs (CCEA) has
approved a hybrid annuity model for implementing highway
projects.
5. NHAI has signed a MoU with the National Remote Sensing
Centre (NRSC) under ISRO to use spatial technology such as
satellite data to monitor and manage National Highways.
6. Tax exemption is given on Masala Bonds to help mobilize more
investments.
7. The Union Budget 2017-18 accorded thrust to multi-modal
 transport planning and synergizing investments in railways, roads,
waterways and civil aviation.
8. The Government has launched Indian Bridge Management System
(IBMS) for carrying out inventory and condition assessment of all
the existing bridges on National Highways.
9. Construction of India’s longest highways tunnel, the Chenani-
Nashri tunnel in Jammu & Kashmir.
10. The government has identified development of 2,000 km of
coastal roads to improve the connectivity between ports and
remote villages.
4. The progress under NHDP has been somewhat slower than
anticipated
1. Timeliness in awarding contracts.
2. Difficulties in acquiring land.
3. Securing environmental clearances.
4. Shortages in construction capacity.
5. In a 2012 Report, the World Bank alleged the presence of
fraudulent and corrupt practices by Indian contractors. Road safety
is also a major issue.
6. Further optimization of energy and transport under NHDP is
achievable with the accelerated construction of service lanes for
local traffic in all existing four-lane and six-lane roads. Financing
of these roads should rely on user charge principle in form of tolls
and continuing with the existing Central Road Fund through
additional levies on petrol and diesel.
5. Motor Vehicles amendment bill, 2019
1. Third party insurance: The 2017 bill removes the cap on
liability for third party insurance as provided for in the 2016
amendment bill. Scheme for providing interim relief to claimants
seeking compensation under third party insurance.
2. Funds for hit and run accidents: A motor vehicle accident fund
has been constituted for the treatment of injured person,
compensation to the person hurt or to the representatives of person
died in hit and run case.
3. Agency for road safety: The 2017 Bill provides for a National
Road Safety Board (as recommended by Sundar committee) to be
notified by central government.
 4. Road design and engineering: The 2017 Bill provides that any
contractor responsible for the safety standards of roads would need
to adhere to specified standards by state/central government and
would be held responsible through penalty for road accidents.
5. Hassle-free and quick services: The bill proposes increasing
validity of driving licenses, getting learning licenses online and
omitting the requirement of minimum qualification to get a
driving license issued.
6. Stricter penalties: For offences such as drunken driving,
dangerous driving, non-adherence to safety norms by drivers (like
wearing helmets etc.). The bill has proposed three-year jail term
for parents of minors who are caught driving with 10-fold increase
in compensation to victim.
6. Recommendations of Rakesh Mohan Committee
1. Roads should not be looked at in isolation, but as part of an
integrated multi-modal system of transport. The planning and
development of the primary road network must tie up with
planning of railways’ dedicated freight corridors.
2. The existing network of National Highways and State Highways
may be expanded in tune with the economic growth and
development of industrial hubs, SEZs, ports, tourist centers and
connectivity to international routes – Asian Highways and the
European Road Network.
3. Special needs of connectivity to ports, airports, mining areas and
development of power plants should be factored in development
of the road programme.
4. States should encourage citizen and user oversight through
undertaking road user satisfaction surveys.
5. The current program of PMGSY should be expanded to achieve
universal connectivity to all habitations on time bound basis.
6. Expand the reach of the electronic toll collection (ETC)
system. Complete the setup of ‘FASTag’, which employs radio-
frequency identification.
7. There is need for continuous upgradation of technology in the
auto industry, especially the commercial vehicle sector, to meet
the objectives of better comfort, productivity, energy efficiency.
8. Private sector financing in the highways will remain confined to
 commercially viable and high traffic density stretches. It will be
prudent to enhance the availability of public sector funding.
9. For capacity augmentation of state highways every state should
formulate and implement programmes on the lines of NHDP.

Railways

1. Dedicated freight corridors

1. The existing trunk routes of Howrah-Delhi on the Eastern
Corridor and Mumbai-Delhi on the Western Corridor are highly
saturated, with line capacity utilization varying between 115-150
per cent. The surging power needs requiring heavy coal
movement, booming infrastructure construction and growing
international trade has led to the conception of the Dedicated
Freight Corridors
2. The sanctioned Dedicated Freight Corridors are Western
Dedicated Freight Corridor (Dadri, UP to Jawaharlal Nehru Port,
Mumbai) and Eastern Dedicated Freight Corridor (Ludhiana,
Punjab to Dankuni West Bengal). It is proposed to take up three
freight corridors. North-South connecting Delhi to Chennai, East-
West connecting Kharagpur to Mumbai & East Coast connecting
Kharagpur to Vijayawada on high priority basis.
3. The two dedicated freight corridors will provide relief to the
railways heavily congested Golden Quadrilateral along the
western and eastern rail routes, and facilitate fresh industrial
activity and multi-modal value addition services hubs along the
corridors. The diversion of freight to DFCs on trunk routes will
free up the existing network for the kind of capacity expansion
needed for passenger movement.
4. The commissioning of the WDFC and EDFC projects, spanning
over 3360 route kms, will not only help the railways regain its
market share of freight transport but bring about fundamental
changes by reduction in unit cost of transportation, smaller
organization and management cost, with higher efficiency and
lower energy consumption. In the execution of the two dedicated
freight corridors, the DFCCIL aims to follow a low carbon path,
adopting various technological options which can help them to
operate with greater energy efficiency.
2. Key developments
1. Passenger amenities and services improved through introduction
of better services, improved catering, etc
2. High speed train between Mumbai-Ahmedabad corridor already
sanctioned and under implementation with financial & technical
assistance from Japan. India’s first semi-high speed train
christened as Gatimaan Express capable of running at a maximum
speed of 160 Kmph.
3. The Rail Development Authority (RDA) has been setup. The
regulator will perform four primary functions — tariff
determination; ensuring fair play and level playing field for
stakeholder investment; setting efficiency and performance
standards; and dissemination of information.
4. Starting Budget 2017-18, Railway budget has been merged with
General budget. The Cabinet approved productivity Linked bonus
to railway employees.
5. Digital India Initiatives: India’s first high speed public Wi-Fi
service at Mumbai Central station inaugurated. Hand Held
Terminals given for TTEs. Integrated social media platforms for
grievance redressal launched.
6. Green Initiatives: ‘First Green Train Corridor namely
Rameswaram - Manamadurai’ free from human waste discharge
inaugurated.
3. Safety measures
1. A fortnight long massive safety drive launched to focus on
measures to prevent derailments.
2. Indian Railways is working on an action plan on eliminating
unmanned level crossings from the railway network. The exercise
is a sub-mission of the Railways “Mission Zero Accident”.
Regular awareness campaigns are underway to sensitize the public
about taking precautions while crossing unmanned level crossing.
3. TRI-NETRA, a radar assistive technology has been launched to
improve safety of locomotives.
4. An action plan has also been chalked out for retro-fitting of the
existing coaches with better safety features over the next 3 to 4
years.
5. It is decided that Indian Railways would completely switch over
to the production of LHB coaches, which are designed with better
 safety features like anti-climbing and anti-telescoping.
6. Japan and Korea have been roped in to improve the safety
performance of Indian Railways.
4. Key isues
1. Congested networks.
2. Organisational structure: Delays in decision- making, inadequate
market orientation and long project approval durations lead to
slow turnover times.
3. Internal generation of resources: Negligible non-fare revenues and
high freight tariffs have led to a sub-optimal freight share. The
lower relative cost of transporting freight by road has led to a
decline in the share of the railways.
4. Safety and poor quality of service delivery: There have been a
number of accidents and safety issues in the IR in recent years.
5. Way forward
1. Early completion of DFCs to ease congestion burden.
2. Ease organisational rigidity through structural reforms.
3. Rationalise fare structures and subsidies, and monetise assets to
generate revenues. Expedite the process of establishing the Rail
Development Authority (RDA).
4. Enhance safety of trains to reduce accidents and modernize
stations. Eliminate level crossings. TRI-NETRA.
5. India must adopt a holistic approach in designing integrated
transport networks. India's dated system of institutional
governance has resulted in a transport system that favours isolated
decisions beset by unclear responsibilities, politicisation of
investment, and weak accountability.
6. Infrastructure should be programmed in anticipation of future
demand. It is frequently easier, cheaper and faster to do this than
post hoc construction that increases capacity at the margin.
7. While retaining the role for the government in infrastructure
funding, there is need for stepping up private investment to both
fill the investment gap and also allow increased flow of public
investment in perhaps commercially unviable but economically
and socially important investment decisions.
8. India urgently requires people adept at following with respect to
infrastructure development: planning, project identification and
development.
 6. Bibek Debroy Committee recommendations
1. Streamline recruitment & HR processes. There is a multiplicity of
different channels through which people enter the railway services
2. Transition to commercial accounting.
3. Establishment of Independent Regulator RRAI.
4. Private entry into running both freight and passenger trains in
competition with Indian Railways should be allowed
5. Constructing new suburban lines should be undertaken as joint
ventures with state governments. There are too many Zones and
Divisions and thus a rationalization exercise is required.
6. Decentralisation should happen at the bottom level duties.
7. Non-core areas.
8. An Investment Advisory Committee may be set up, consisting of
experts, investment bankers and representatives of SEBI, RBI,
IDFC and other institutions for raising resources for investment.

Civil Aviation

1. In the last decade, the Civil Aviation sector has grown at a phenomenal
pace. By 2020, India will be 3rd largest aviation market.
2. National Civil Aviation Policy, 2016
1. Regional Connectivity Scheme: Capping of fare to Rs.2500 for
one hour flights. Revival of airstrips/airports as No-Frills Airports.
2. Route Dispersal Guidelines (RDG): MoCA will categorise the
air traffic routes into 3 categories.
3. 5/20 rule scrapped. This provides level playing field for new
comers.
4. Bilateral Traffic Rights: Government of India will enter into
Open Sky Agreements on a reciprocal basis with SAARC
countries and countries located beyond 5,000 km from Delhi. i.e.
these countries will have unlimited access, in terms of number of
flights and seats, to Indian airports, leading to increased flight
frequencies.
5. Ease of Doing Business: A single window for all aviation related
transactions, complaints, etc. More focus on ease-of-doing
business as government plans to liberalise regime of
regional flights.
 6. Infrastructure Development: Restoration of air strips at a
maximum cost of Rs. 50 crore through Airports Authority of India
(AAI). Four Heli-hubs to be developed.
3. Challenges

Ports and Shipping

1. India’s long coastline of 7500 km is serviced by 12 major ports, 187

minor ports. Non-major ports are gaining shares and a major chunk of
traffic has shifted from major ports to non-major ports. Maritime trade
accounts for 90% by volume and 70% for value. Thus the development
of ports is vital for our economic sector.
2. Opportunities
3. Problems with Indian ports
1. Problem of heavy silting and inadequate dredging capacities as
seen in riverine ports like Haldia.
2. Poor mechanisation and manual handling of critical processes. Ex:
Paradip port. Under-utilisation of physical infrastructure of the
ports. Ex: Cochin ports.
3. Congestion of roads connecting the port leading to time delays as
seen in JLN port. Turnaround time is as high as 3 to 4 days
compared to average time of 6-7 hrs in other developed ports
because of cumbersome documentation and clearance.
4. Currently the ports operate on Trust model where government is
the owner and operator of the port. We need to shift towards
Land-lord tenant model where private sector can operate the port.
5. The dual institutional structure has led to the development of
major ports and non-major ports as individual projects.
6. The involvement of multiple agencies in the development of
infrastructure to promote industrialisation, trade, tourism and
transportation across the country. This led to lack of
synchronisation of their efforts.
7. Limited development of coastal areas for manufacturing and
 economic activities, low penetration of coastal and inland
shipping is hindering the growth of economy.
8. Non-perennial rivers and requirement of constant dredging poses
challenges.
4. Solutions
1. It is important that the Indian shipping industry be provided a
level playing field for it to grow and compete globally. This will
require rationalisation of restrictive policies, particularly related to
imposition of a variety of direct/indirect taxes.
2. Having an integrated approach to port development i.e. multi-
modal port development. Adequate rail and road connectivity
must be provided to these coastal terminals.
3. Switching to landlord-tenant Model, where operation is in the
hands private [Link] has initiated the major port authorities
bill, 2016 to enact a more friendly land-lord tenant model.
4. Efforts should be made to develop deeper stretches of the rivers
for IWT/navigational purposes for round-the-year navigation
5. Priority should be accorded to coastal ships by setting up coastal
terminals at the major ports and identifying and developing five or
six non-major ports on the east and west coasts as designated
coastal ports.
6. Building and maintaining infrastructure for handling desired
capacities. Ensure mechanisation of ports through introduction of
new equipment and procedures, built new facilities and upgrade
existing ones.
5. Sagar mala
1. Sagar Mala is a strategic, customer oriented initiative to evolve a
model of port led development whereby India’s long coastline will
become the gateway of India’s prosperity. It has four objectives.
2. It envisages transforming the existing ports into modern ports on
the one hand and developing new world class ports on the other
hand.
3. It aims to setup some 14 coastal employment zones (CEZs). Sagar
Mala aims to integrate the development of the ports, the industrial
clusters and hinterland through road, rail, inland and coastal
waterways.
4. It aims in coastal community development.
 5. It aims to improve port connectivity.
6. Significance of the vision
1. Now, Indian ocean bears two-thirds of the world’s oil shipments,
one third of its bulk cargo and half of its container traffic. Over
three fourths of its traffic goes to other regions of the world.
2. India is also emerging as a new hub of manufacturing, which
needs well developed ports. It also has an important role in
making the Make in India project a success and greater global
engagement and integration with its trading partners.
3. Waterways are environmentally friendly when compared with
other means of transport.
4. Expansion of bilateral and multilateral naval exercises with
many of India’s neighbours in the Indian ocean. For maritime
capacity building, especially in the island states that occupy
critical locations in the Indian ocean.
5. In the light of increasing marine piracy and terrorist attacks from
sea frontiers (2008 Mumbai attacks).
6. Increasing share of maritime trade in overall trade basket
containing trade through land, air and maritime routes.
7. IO coastline is vital in providing livelihood security to fishermen
community in India.
8. IO region is well endowed with resources in Exclusive Economic
Zones (EEZ) which are important for energy exploration and
resources.
7. Significance of eastern coast economic corridor
1. The new industrial corridor is expected to spur growth by
augmenting existing investment in world class transport networks,
infrastructure, and industrial and urban clusters.
2. VCIC (Visakhapatnam-Chennai Industrial corridor) will also be
an important component of the government’s Make in India
campaign to attract foreign investors and encourage the creation
of manufacturing hubs in the country.
3. VCIC will create employment opportunities that alleviate poverty
and reduce inequality. This is particularly significant for the
Eastern region as it lags behind other regions of the country.
4. It can help unify the large domestic market. The Visakhapatnam-
 Chennai corridor, for example, will link four economic hubs and
nine industrial clusters.
5. It will integrate the Indian economy with the dynamic global
value chains of Asia and drive India’s Act East policy. Greater
connectivity and economic integration between South Asia and
the rest of Asia is likely to contribute significantly to development
and foster regional cooperation as well.
6. As a coastal corridor, VCIC can provide multiple access points to
international gateways. It is in line with the trade reforms needed
in the evolving global trade landscape.
8. Maritime security strategy 2015
1. To shape a favourable and positive environment in the Indian
Ocean.
2. To constructively involve in multilateral military engagement,
local capacity building, technical cooperation, communications
etc.
3. Security of sea lines of communication, protection of overseas
investment and Indians residing abroad.
4. Giving teeth to the Act East policy.
5. It validates the use of the Navy as the primary instrument to
secure the seas for economic purposes.
6. It recognises India’s bilateral relationships in its maritime
neighbourhood to operate in region in accordance with
international laws.
9. Overall development of ports will cater to Make in India, boost exports,
create positive multiplier effect on the economy and improve security
of our coastal regions.
10. Initiatives to Develop Inland Waterways
1. The ‘Jal Marg Vikas Project’ on NW-I in river Ganga, a large
integrated IWT project, has been launched between Varanasi and
Haldia.
2. Based on techno economic studies, eight new NWs have been
taken up for development in 2017-18. These include NW-16
(Barak river), etc.
3. In order to reduce the logistics cost of cargo and facilitate
passenger movement between North East and mainland, MOUs
have been signed with Bangladesh.
 4. To provide institutional funding, the Government has proposed to
allocate 2.5 per cent of the proceeds of Central Road Fund for
development and maintenance of National Waterways.
5. Sagarmala initiative.

Coastal Employment Zones (CEZ)

1. Lately, many large firms on the Chinese coast, especially in labour

intensive sectors, are turning uncompetitive due to high and rising
Chinese wages. India must take advantage of this potential migration. It
is in this context that India must replicate the Chinese strategy by
creating two Coastal Employment Zones (CEZs), one on east coast and
the other on the west coast. Limiting the initial number of CEZs to two
will ensure that limited resources are not spread thin over too many
zones.
2. Main features
1. Large area with flexible land conversion rules. They may also
introduce more liberal land acquisition rules as done by Tamil
Nadu and Gujarat.
2. Liberal economic environment and tax incentives. They should
have liberal labour laws, as is currently the case in SEZs, NIMZs,
etc. We may provide a limited period tax holiday on corporate
income tax.
3. It is critical that CEZs are located close to ports where large ships
can dock. The coastal location next to ports will allow firms to
import inputs and process and ship them back to the world
markets in a timely manner.
4. Public investment and autonomy must be increased. This
investment would help create the necessary infrastructure and
housing for a large resident workforce. Also essential will be the
provision of uninterrupted electricity at globally competitive rates.
The state will also need to provide the zone enough administrative
autonomy to create a liberal business environment.
5. Trade facilitation and trade liberalisation. The central government
will need to commit to creating the frictionless movement of
imports and exports from the zone.
Multi-modal programme

1. Multi-Modal program is an initiative of the government of India to

synchronise the operations of the all the modes of transportation
ranging from highways, railways, air and inland waterways for better
service delivery across the country.
2. Objectives of the programme
1. To reduce logistics cost and make economy competitive.
2. It will also help us in increasing exports.
3. It will lead to de-congestion of cities. It will redistribute traffic,
freight etc., from over burdened road to railway, waterway and
airways.
4. The programme will provide employment to millions of youth at
logistics parks and construction activities.
5. Faster infrastructure development in land transport systems
through greater stress and increased interoperability.
3. Plan is as follows
1. GOI has changed its approach from that of "point to point" to "hub
and spoke" model, which involves railways, highways, inland
waterways and airport to enhance transportation grid.
2. This will entail setting up 35 multi-modal logistics parks at a cost
of Rs. 50,000 crore, developing 50 economic corridors and
inviting investment from the states and private sector. Land
acquisition and clearance to be spearheaded by the GOI.
3. Financing to be undertaken through selling of the acquired land.
GOI is also trying to get infrastructure status for these projects to
attract further investment.
4. Key projects would include cold storage, warehouses, truck
maintenance, agriculture storage etc., at the logistics park.
4. Today logistics accounts a major spend in the entire supply chain and
streamlining that would go a long way in enhancing trade and
connectivity in India at a time when inter-state trade accounts for nearly
54% of GDP.

Logistics
1. The Indian logistics industry employs more than 22 million
people. However, existing logistics costs in India are high relative to
other countries.
2. Constraints
1. Cost of logistics: The cost of logistics remains high i.e. 13-14% of
GDP as compared to USA 9-10% due to challenges in poor
connectivity and an unfavourable modal mix.
2. Fragmented Policy approach: Different parts of the logistics
value chain currently are being managed by multiple ministries
and agencies which hampers coordinated oversight policy action.
3. Warehousing capacity: There is low value addition in the
warehouse sector. Handling and warehousing facilities are still
largely un-mechanized with manual loading, unloading and
handling in the case of many commodities.
4. Skewed modal transportation mix with 60% of freight moving
on roads. It is significantly larger than in key developed
economies.
5. Seamless movement of goods: The movement of goods across
modes suffers from the absence of last mile connectivity and
infrastructure. For example, poor road and rail connectivity to
most non-major ports leads to delays in travel time.
6. Border compliance and document processing time: High border
compliance time.
3. Government Initiatives for Logistic Sector
1. Logistic sector has been given infrastructure status in 2017, which
will ease-out fund related and other logistic bottlenecks.
2. Government proposed a Logistic Hub in Assam, with the aid of
Asian Development bank.
3. Government has launched Logistic Ease Across Different States
(LEADS) index in order to look at logistic bottleneck at state
level.
4. Logistic Efficiency Enhancement
Programme (LEEP) was launched to improve India's logistics
efficiency.
5. GST solves the problem of complex tax structure for logistics
thereby leading to efficient decision making by logistic firms.
4. Improvements in logistics sector has ripple effects on the economy in
 the form of reduced costs for businesses, reduced wastage and increased
employment, etc.

Energy

1. India is the fourth largest consumer of energy in the world after USA,
China and Russia. However, India is not endowed with abundant energy
resources. It must, therefore, meet its development needs by using all
available domestic resources of coal, uranium, oil, hydro and other
renewable resources, and supplementing domestic production by
imports.
2. Current situation
1. India’s energy mix is dominated by coal with a 49.6 percent share,
followed by oil (28 percent), biomass (11.6 percent), gas (7.3
percent), renewable and clean energy (2.2 percent) and nuclear
energy (1.2 percent). On energy supply, India is still heavily
dependent on petroleum imports to meet its requirements. We
imported approximately 82 percent of crude oil and 45 per cent of
natural gas requirements during 2017. We also import 200 million
tonnes of coal.
2. In the power sector, the all-India installed power capacity is about
334 GW, including 62 GW of renewable energy. Renewable
energy constitute almost 16% of total installed capacity.
3. Objectives
1. Make available 24x7 power to all by 2019.
2. Achieve 175 GW of renewable energy generation capacity by
2022.
3. Reduce imports of oil and gas by 10 per cent by 2022-23.
4. Continue to reduce emission intensity of GDP in a manner that
will help India achieve the intended nationally determined
contribution (INDC) target of 2030.
5. In the coal sector, the government has recently in 2018 allowed
commercial mining.
4. Constraints
1. Power
1. Poor financial health of DISCOMs: Only 11 states have
subscribed to UDAY scheme till now to close the gap
 between tariffs and cost of procurement.
2. Transmission losses and power theft: Transmission and
Distribution losses in the country are around 23%. This
increases the average tariff to be charged to recoup losses.
Power theft is very common.
3. Finances: Project cost over runs and high lending rates are
inimical to the growth of power sector in the country. Power
sector and Discoms are among the sectors that have
contributed the highest to NPAs.
4. Fuel: CIL accounts for around 80% of the domestic coal
requirement by coal based power plants, leading to
dependence on imported coal.
5. Land: Concerns regarding land acquisition, environmental
clearance and consequential delays and project overruns.
High cost of renewable energy devices, especially for
households.
6. Unmetered: Unmetered power supply to
agricultureprovides no incentive to farmers to use electricity
efficiently.
7. Old plants: Old inefficient plants continue to operate
whereas more efficient plants are underutilised.
8. Complexity of tariff structures: Presence of different
tariffs for different sectors leads to inefficiency and
confusion. Simplification of tariffs with, perhaps no more
than 2-3 tariff categories, will improve transparency.
9. Centre-state cooperation: According to DDUGJY centre
provides the infrastructure, the State provides the power
after working out its availability. But sometimes the
relationship is not harmonious.
2. Oil & gas
1. Non-discriminatory access for private and public sector
companies to the gas pipeline network does not exist.
2. Lack of market driven gas prices for old fields
disincentivises further production. The gas pipeline
infrastructure is also inadequate.
3. Coal
1. Land for coal mining is becoming a major issue.
 2. There is a tendency to expand opencast mining and
discourage underground operation even for better quality
coal reserves. This aggravates the land availability problem.
3. There is no competitive coal market.
4. Coal mining is still dominated by CIL which is inefficient.
4. Subsidies and taxes
1. A variety of subsidies and taxes distort the energy market
and promote the use of inefficient over efficient fuels.
2. They also make Indian exports and domestic production
uncompetitive as energy taxes are not under GST and hence,
no input credit is given. This is a serious lacuna.
5. Government initiatives in Energy Efficiency
1. Standards & Labelling programme for appliances by the Bureau
of Energy Efficiency (BEE).
2. Perform Achieve and Trade (PAT) is a market based mechanism to
enhance cost effectiveness through certification of excess energy
savings in energy intensive industries that can be traded.
3. Energy Conservation Building Codes (ECBC). In order for a
building to be considered ECBC-compliant, it would need to
demonstrate minimum energy savings of 25%. With the adoption
of ECBC 2017 for new commercial building construction
throughout the country, it is estimated to achieve a 50% reduction
in energy use by 2030.
4. Smart BEE star rated Energy Efficient Agricultural Pump sets are
to be distributed to farmers.
5. The Unnat Jyoti by Affordable LEDs for All (UJALA) scheme
was launched to provide LED bulbs to domestic consumers.
6. Street Lighting National Programme (SLNP) aims to replace 3.5
crore conventional street lights with smart and energy efficient
LED street lights by March, 2019.
6. Way forward for energy efficiency
1. States should adopt the second version of the Energy
Conservation Building Code (ECBC) in their building by-laws
and ensure faster implementation.
2. Promote the mandatory use of LED and the replacement of old
appliances in government buildings with five-star appliances.
 3. Widen and deepen the perform, achieve and trade (PAT)
programme by ensuring strict penalties against defaulters.
4. For the MSME sector, BEE should develop cluster-specific
programmes for energy intensive industries to introduce energy
efficient technologies.
5. Old and inefficient plants consuming more than the threshold
energy should be retired in a phased manner.
6. Promote the use of the public transport system. Public transport
systems may be converted to electric in a time bound manner.

Electricity

1. According to the International Energy Agency (IEA), nearly 240

million Indians lacked lack access to electricity in 2017. By 2018, India
has electrified all the villages. Despite this, many Indians continue to
linger in the dark.
2. Electrified village
1. There are three criteria for a village to be called as electrified.
2. The number of households electrified should be at least 10% of
the total number of households in the village.
3. Basic infrastructure such as Distribution transformer and
Distribution lines are provided in the inhabited locality as well as
the Dalit Basti hamlet where it exists.
4. Electricity is provided to public places like schools, panchayat
office, health centers, dispensaries, community centers etc.
3. Achievements in power sector
1. Increase in the power generation capacity with active private
sector participation. Total installed capacity in India is more than
334 GW at present.
2. Progress towards clean energy through addition of RE capacity.
Renewable energy targets for Solar (100 GW by 2022), Wind (75
GW by 2022) are laid down.
3. Creation of national smart grid.
4. India emerged as a net exporter of electricity to Nepal,
Bangladesh and Myanmar.
5. Under Deen Dayal Upadhyaya Gram JyotiYojana
 (DDUGKY), 100 percent village electrification is achieved.
6. Integrated Power Development Scheme (IPDS) to improve power
infrastructure and reduce AT&C losses.
7. Initiatives like UDAY, e-Trans, smart meters.
8. SAUBHAGYA scheme launched for universal electrification of all
the house holds. Special drive for economically weaker sections
under Gram Swaraj Abhiyan.
9. Power for All 24*7 is joint initiative of Govt of India and State
Govts.
10. Focus on energy efficiency. LED bulbs are promoted under the
UJALA scheme.
11. To bring transparency and to disseminate information to public at
large apps like TARANG, DEEP e-bidding, SAUBHAGYA (App
for tracking household electrification).
4. Need for revision of power policy
1. Discoms in a financial crunch need to be bailed out by banks and
need refinancing every time due to distorted subsidy regime
which is the result of populist pressure to keep tariffs low.
2. Irregular access of electricity to domestic and industrial
consumers, power cuts and irrational tariffs.
5. Provisions of the new power policy
1. Rationalisation of tariff for end consumer, letting DISCOM pass
on some of the additional costs to the consumer as a result of any
cess levied on them.
2. Compulsory procurement by Discoms from waste-to-energy
plants.
3. There will be an increase in charge of electricity, in tune with
current inflation, cost of production and other losses.
4. Surplus power will be e-actioned, helping in utilising full capacity
of plant.
5. Enabling micro-grids and their integration into the national grid
creating an veritable market for electricity. Targeted to ensure
24/7 power supply by 2021-22, through installation of micro grid
in remote villages.
6. It will make mandatory for coal and lignite thermal plants to
install renewable energy system to fulfil their power needs and
 supplement production.
6. Implications
1. Initially tariffs may rise but with better efficiency and
diversification of production through renewable sources, cost of
power will reduce.
2. Regular connectivity and uninterrupted 24x7 supply. They can
now use modern technology to produce their own electricity and
sell to the govt via micro grids etc.
3. DISCOMs will have to take the unpopular measure of passing the
cost on to the consumer.
4. DISCOMs will have to invest in grid upgradation for the new
features of enabling generators to plug in. This will require some
capital funding. They need a strategy on offsetting for climate
change by buying renewable energy.
7. UDAY scheme
1. It is a central sponsored scheme launched to revive Discoms in
India. It allows state governments to take over 75 percent of their
debt and pay back lenders by selling bonds.
2. The main advantage of the scheme is that it reduces stress on
DISCOMs, bad loans and reduce T&D losses.
8. Challenges
1. Electricity is not a central subject, and states cannot be made to
participate in the programme.
2. Also, the Centre is not providing any monetary assistance.
3. State governments are expected to convert the discoms debt into
bonds. Finding buyers for such bonds might prove difficult
especially since these would not enjoy SLR status.
4. Besides, there is nothing in the scheme to fix the perverse political
incentive that leads to T&D losses and debts in the first place.

Merchant Mining of Coal

1. Centre needs to follow the big bang reforms in the coal sector and
promptly allow merchant mining to end perennial shortages of the fuel
that remains India’s main source of commercial energy.
Gas-based economy

1. Natural gas is one of the cleanest and most environment friendly fuels
having extremely low carbon emissions compared to other fuels like
coal and oil.
2. Steps
1. Development of gas sources either through domestic gas
exploration and production activities or through building up
facilities to import natural gas in the form of LNG.
2. Gas infrastructure is being strengthened through a nationwide gas
grid, city gas distribution projects, and raising liquefied natural
gas (LNG) import capacity.
3. Connecting North-east India. Over Rs 22,000 crore is being spent
on laying new pipelines that will transport natural gas to
unconnected eastern states of Bihar, Odisha and West Bengal and
further to northeastern states, making available environment
friendly fuel for industry and domestic use.
4. Policy to grant relaxation at development and production stage for
early monetisation of hydrocarbon discoveries.
5. Uniform licensing in Hydrocarbon Exploration and Licensing
 Policy (HELP) will give a boost in easing regulatory burden.
6. Policy for marketing freedom for gas produced from deepwater
and ultra-deepwater areas etc.
7. To incentivise gas production from difficult areas, Government
has granted pricing freedom for the gas produced from difficult
areas under HELP.
8. Policy on testing requirements for discoveries made under New
Exploration and Licensing Policy (NELP) Blocks.

Different types of contracts

1. Production Sharing Contract (PSC)

1. It is a contract signed between government and a resource
extraction company concerning how much of the resource
extracted from the country each will receive. In this contractor
bears all exploration risks, production and development costs.
2. In case of commercial discovery, explorers can first recover all of
their capital and operating expenditure from oil and gas revenues
before sharing the profits with the Government under a specific
formula.
2. Arguments for
1. Generally governments lack expertise and capital to extract the
resources. PSC encourages private players to fill this gap.
2. Private companies with sufficient capital and expertise can invest
in exploration activities and recover the cost invested and then
asks private companies to share the profit with government.
3. Arguments against
1. Private companies inflate capital expenditure so that they can get
more share in the resources long period of time. After recovering
the capital expenditure, private companies may undervalue profits
that need to be shared with government.
2. No continuous supply of oil and gas during the times of low
prices.
4. Revenue Sharing Contracts (RSC)
1. Oil and Gas Exploration Companies (OGEC) will develop the oil
and gas fields. But the revenue will be shared between the
government and OGECs from the first batch of production of the
 oil and gas itself.
5. Arguments for RSC
1. This is good because it will allow companies the flexibility to
manage operations without the undue scrutiny of the CAG and
public at large. Efficiency can be achieved in the absence of
constant controversy that surrounds the production sharing
contracts.
2. It will also safeguard the Government’s interest in case of a
windfall arising from a price surge or a surprise geological find.
6. Argument against RSC
1. The spirit of partnership and trust is completely missing in RSC.
Companies will not feel confident about investing huge capital
with significant costs under circumstances in which their recovery
is not guaranteed.
2. It could lead to lower levels of production owing to reduced
exploration efforts and lower recovery ratios besides high windfall
gains to operators which could encourage contract instability.
7. Merits of new Hydrocarbon Exploration & Licensing Policy
1. Uniform license for all hydrocarbons would enable contractors to
explore all hydrocarbons including CBM, shale gas, gas hydrates,
natural gas, oil under single license.
2. Open acreage will enable investors to choose the block from
designated area as well as allow them to bid at any time without
waiting for formal bid.
3. Concessional royalty for difficult terrains allow producer to take
exploration and improve profits.
4. Revenue Sharing Contract model will benefit companies from
constant government intervention, regular submissions by
promoter. Also, Government need not be concerned about cost
incurred and will receive a share of gross revenue from the sale of
oil, gas etc.
5. Marketing and pricing freedom will enable companies to set the
product prices aligning to the market prices and hence relieve
them from oil bonds issued by government earlier.
6. New policy would expedite the hitherto stagnant domestic
production thereby reducing dependence on riskier import.
8. Concerns
 1. Increase in the gas prices, which are hitherto capped artificially
low, would affect consumer expenditure adversely resulting in
low domestic demand.
2. Move towards RSCs can reduce investment by producers as they
do not feel confident about their recoveries. Kelkar committee has
highlighted that RSC will not attract bidders due to excessive risk
burden falling on companies.
3. Rise in prices of gas would affect the fertiliser industry
disproportionately as gas is the major raw material used in the
industry (almost 60%).
4. Pricing freedom may be harmful if the sector is monopolised by a
single company.

Mining

1. Mining sector in India contributes about 2.1% to our GDP. India has
huge mineral potential, especially in relation to iron ore, bauxite, coal,
diamonds, and heavy minerals sand. But only 10 percent of the
potential area has been explored and 1.5 percent is being mined.
2. Constraints in mineral exploration
1. Shortcomings in the licensing regime such as the separation of
auction of prospecting licences and provision of mining licences,
and the different auction methodologies across different sectors
like coal, oil and minerals.
2. Heavy cost of acquiring land.
3. High incidence of taxes, royalties and levies in comparison to
global standards.
4. Monopoly of state owned companies in few sectors like coal is
leading to inefficiencies.
5. Old and obsolete technology, low skilled manpower, low output
etc.
6. Inadequate infrastructure resulting in evacuation problems. Ex:
Rathole mine accident in Mizoram.
7. Poor connectivity through inland waterways means over reliance
on railways for transportation and thus increased transportation
costs as well as delays.
 8. Environmental concerns like open cast mining which is highly
polluting has become a norm for almost all mining activities.
9. Rehabilitation issues of tribals and other communities.
10. Non-uniform distribution of minerals as well as unmapped
reserves.
11. Political nexus encouraging corruption through non-transparent
auctioning is another challenge.
12. Social issues like child labour, exploitation of workers, lack of
safety measures, etc.
3. Way forward
1. To facilitate participation by private sector players in exploration,
launch a mission “Explore in India”.
2. Single window and time bound environment and forest
clearances. All statutory approvals should mandatorily
be granted within 180 days of application for exploration and
mining of minerals.
3. Boosting minor minerals through a relaxed licensing
regime. Landowners/farmers/tribals need to be given mining
rights for minor minerals on their land, to enable them to mine
either on their own.
4. Data repository, regulation and reporting. A National Mineral
Regulatory Authority, with subordinate state authorities, may be
created to regulate the minerals sector to operate transparently
with internationally recognized technical standards.
5. Immediate steps should be taken to reduce rail freight charges for
all minerals that are available in India in abundance but are
imported because it is currently uneconomical to transport them
by rail.
6. Rationalise taxation/royalty and other levies on mining.
4. National mineral policy, 2019
1. Increase the production of major minerals by 200 percent in seven
years by granting industry status to mining.
2. Attract private investment through various incentives like
financial package, right of first refusal at the time of auction etc.
3. Introduces the concept of Exclusive Mining Zones, which will
come with in-principle statutory clearances for grant of mining
lease so as to curtail delay in commencement of mining
 operations.
4. Simplifies the clearance process and make it time bound for
mineral development and commencement of mining operations.
5. Encourages merger and acquisition of mining entities, and transfer
of mining leases to ensure seamless supply of ores and scaling up
of business.
6. Identify critically fragile ecosystems and declare such areas as
“no-go areas”/ “inviolate areas”.
7. Incentivising use of renewable sources of energy at mining sites to
reduce pollution, carbon footprint and operational costs.
8. Appropriate sensitization training about environmental issues to
all workers involved in mining operations.
9. Scientific mine closure to ensure restoration of ecology and
regeneration of biodiversity.
5. Other steps
1. Mining Surveillance System (MSS) has been launched to check
illegal mining.
2. E-auctioning of exploration blocks replaces the current first-come-
first serve basis of allocation will ensure transparency and
accountability.
3. Auctioning of exploration blocks on revenue sharing basis rather
than production sharing basis is a win-win for both government
and the private sector.
4. The policy suggests setting up of National Central for Mineral
Targeting (NCMT) to address the exploration challenges.
6. Effective implementation of the policy will surely revamp mining
sector in India. However, other issues like strengthening EIA, labour
exploitation, involving civil society need to be addressed.

Housing for all (2022)

1. Objectives
1. Provide every family with a pucca house, with a water connection,
toilet facilities, and 24x7 electricity supply and access.
2. Build around 3 core housing units in rural areas and 1.2 crore
housing units in urban areas.
2. Current situation
 1. A new scheme, the Pradhan Mantri Awas Yojana (Gramin –
PMAY-G) was launched in 2016. This scheme now provides per
unit assistance of INR 1,20,000/- and is converged with SBM and
MGNREGA.
2. Under the Pradhan Mantri Awas Yojana (Urban- PMAY-U), the
mission aims to achieve the objective of ‘Housing for All’ by
2022 through its four pillars – a) in-situ slum redevelopment; b)
affordable housing through a credit linked subsidy scheme; c)
affordable housing in partnership between public and private
agencies and d) subsidy for beneficiary led individual house
construction or enhancement.
3. Constraints
1. Lack of access to finance from formal financial institutions.
2. Long-drawn out, multi-level approval system in urban area in
large majority of municipal jurisdictions.
3. Limited private sector participation in affordable housing schemes
in urban areas.
4. Predominance of conventional construction practices that result in
delayed progress in urban areas and the limited use of pre-
fabricated and pre-engineered materials.
5. Limited access to suitable land banks for affordable housing
projects.
6. Continued rise in the number of slum dwellers.
7. Insufficient number of trained masons despite the operation of the
construction skills development council since 2013.
8. Capacity constraints in urban local bodies (ULBs) to formulate
and design mass housing projects.
4. Way forward
1. Access to finance: Consider a sub-category under priority sector
lending (PSL) for affordable houses.
2. Technology for construction: A Global Housing Technology
Challenge has been launched. It will bring internationally proven
construction technologies for adoption in India.
3. Convergence: It is necessary to ensure convergence of provisions
under Pradhan Mantri Kaushal Vikas Yojana, Construction Skill
Development Council of India and MGNREGA (for rural areas)
for large scale training of masons to meet construction targets.
4. Reducing costs: Fiscal support should be provided to companies
 that use recycled products made from waste.
5. Efficient use of land: The land lying idle with various loss
making PSUs of the central/state governments.
6. Urban governance reforms, amending rental laws and others need
to be undertaken.

Travel, Tourism and Hospitality

1. There has been significant progress in the travel, tourism and hospitality
sector in the last decade but there is much further room for
improvement. India’s share in international tourist arrivals (ITA) is a
paltry 1.1 percent with a rank of 24 compared to the 7.1 percent of
France which ranks 1st in 2015. In the Travel and Tourism
Competitiveness Index 2017, India has improved its ranking 12 places
to reach the 40th position globally among 136 countries in tourism.
2. Advantages
1. It is highly labour intensive sector. In 2016, it accounted for 25
million direct and more than 14 million indirect jobs.
2. This sector is a mover of economy. The sector has multiple
forward and backward linkages with further job generating
potential in sectors such as agriculture, retail, transport and
financial services.
3. Foreign exchange earnings.
4. Improve soft power image of India further.
3. Government initiatives
1. Government has launched the 'Incredible India' campaign across
the world for promoting tourism.
2. India recently introduced tourist visa on arrival, enabled with
electronic travel authorization (ETA) (renamed as the “e-Tourist
Visa”) for tourists from 150 countries.
3. The Ministry of Tourism has launched a round-the- clock, toll free
tourist helpline in 12 international languages.
4. Swadesh Darshan scheme was launched by the Ministry of
Tourism for the development of theme based tourist circuits. Ex:
Krishna Circuit, Buddhist circuit, etc.
5. PRASAD scheme, was also launched by the Ministry of Tourism,
for the development and beautification of pilgrimage sites to tap
 the growth of domestic tourists driven by spiritual/religious
sentiments.
6. ASI has identified 100 monuments to be developed as Model
monuments (Adarsh Smarak). These monuments would be
provided necessary tourist facilities including Wi-Fi, security, etc.
7. Government is focussing its attention on developing our islands as
tourist destinations.
8. Government is improving connectivity and is developing niche
offerings such as medical tourism. A new category of visa
"Medical Visa" has been introduced by the Home Ministry.
9. UDAN scheme to improve connectivity to Tier-II cities, which
can improve tourism in those distant places.
10. Launched social awareness media campaigns with the objective of
sensitizing stakeholders in the tourism industry and to reinforce
the spirit of ‘Atithidevo Bhava’.
4. Constraints
1. Despite the introduction of an e-visa facility, visitors find the
process of applying for a visa still cumbersome.
2. Deficiencies in infrastructure and inadequate connectivity hamper
tourist visits to some heritage sites.
3. India has various tourist destinations but few circuits or segments
such as the Golden Triangle (Delhi- Agra-Jaipur).
4. Although it has been increasing, online marketing/branding
remains limited and campaigns are not coordinated.
5. A limited number of multi-lingual trained guides and lack of
adequately trained people is a key challenge.

Rural Tourism
[Link] models
Investment models

1. Merits of capitalism
1. Automatic working as it does not require any central directing
authority.
2. Higher rate of capital formation and thus greater economic
development and prosperity.
3. Optimum utilisation of resources. Thus it also leads to higher
efficiency and incentive to hard work.
4. Just and democratic.
5. Encouragement to enterprise and risk taking adaptability.
2. Demerits of capitalism
1. Emergence of monopolies and concentration of economic power
in hands of few individuals. This leads to social injustice and
economic inequality.
2. Malpractices such as corruption arise due to nexus between
politicians and bureaucrats.
3. Planning model adopted during initial years
1. Raising the rate of investment since the rate of development is
dependent on the rate of investment. It involved stepping up
domestic and foreign savings too.
2. Rapid growth of the productive capacity of the economy by
directing public investment toward development of industries.
Simultaneously, promotion of labour-intensive small and cottage
industries.
3. Import substitution for self reliance.
4. An elaborate system of controls and industrial licensing.
5. Predominance of public sector in capital goods industries.
4. Relevance of planning in India
1. Though Planning has been one of the basic pillars of the Indian
state’s approach to development since independence, however in
recent times the relevance of planning is much debated. One
argument is that planning has failed to achieve its goals. The
second argument is that planning has become irrelevant owing to
globalization and liberalisation.
2. However, planning based on the Mahalanobis framework was fine
 during the first three plans. The problems that surfaced later were
not due to planning but are the product of lack of appropriate
planning and mismanagement by the government.
3. Planning does not become irrelevant due to internationalisation of
capital. In a liberalised economy, the nature of planning changes
corresponding to the changes. Public investment will continue to
have a major role in social sectors and rural economic
infrastructure and the prioritization of the investment has to be
properly planned.
4. The role of planning in our federal system is to coordinate the
activities of all levels in the government and that of the market
and civil society actors. In this way, it has to evolve a shared
commitment to national goals among all actors in the society.
Further the inherent exclusionary tendencies of the market can
only be limited by the State through proper planning.
5. To make planning successful, the country has to follow a more
decentralised and participatory planning. To remove regional
disparities there is need for regional planning, town and country
planning. It also needs to be made contemporary and
comprehensive by including not only the conventional issues but
also the emerging areas, like critical environmental issues.
5. Issues in infrastructural financing
1. Poor funding: The slowdown in the economy has further
aggravated funding capacity in the infrastructure sector. More
recently, in the context of Eurozone debt crisis, accessing external
resources by way of ECBs could also become difficult and this
would also accentuate the funding gap.
2. Fiscal burden: Almost half of the total investment in the
infrastructure sector was done by the Government through budget
allocations. Here the point to be noted is that Government funds
have competing demands, such as, education, health, employment
generation, among others.
3. NPA: Due to NPA crisis, commercial banks are not forthcoming
to lend to long term infrastructure needs. Also these banks rely on
short-term liabilities and, as such, their ability to extend long term
loans to the infrastructure sector is limited. This is because, by
doing so they get into serious asset-liability mismatches.
4. Insurance and Pension funds: Insurance and pension funds are
 one of the best suited to invest in the infrastructure sector because
of their long term nature. However, they are constrained by their
obligation to invest a substantial portion of their funds in
Government securities.
5. Insufficiency of user charges: Large part of the infrastructure
sector in India is not amenable to commercialisation. Due to this,
Government is not in a position to levy sufficient user charges on
these services. The insufficiency of user charges on infrastructure
projects negatively affect the servicing of the infrastructure loans.
6. Legal and procedural issues: The problems related to
infrastructure development range from those relating to land
acquisition for the infrastructure project to environmental
clearances for the project. Many a times there are legal issues
involved in it and these increase procedural delays.
7. Vibrant corporate bond market: An active corporate bond
market can facilitate long term funding for the infrastructure
sector. However, despite the various initiatives taken by the
Reserve Bank, SEBI and Government of India, the corporate bond
market is still a long way to go in providing adequate financing to
the infrastructure sector in India.
8. Developing municipal bond market: Conventional fiscal
transfers to the urban local bodies are no longer sufficient. One
possible way of addressing the problem is developing a municipal
bond market.
6. Measures taken by Government
1. PPP in Infrastructure: As Government faces a tight budget
constraint, it started encouraging PPP projects in the
infrastructure. Government has taken several initiatives,
especially to standardise the documents and process for
structuring and award of PPP projects. This has improved
transparency.
2. Setting up of IIFCL: Central Government setup IIFCL for
providing long term loans to the infrastructure projects. IIFCL is
involved both in direct lending to project companies and
refinancing of banks and other financial institutions.
3. FDI: To facilitate infrastructure financing 100 percent FDI is
allowed under the automatic route in some of the sectors such as
mining, power, civil aviation sector, telecommunications, special
 economic zones, etc.
4. Use of foreign exchange reserves: Although use of reserves for
such purposes does not meet the criterion of reserve management
objectives, a special and limited window has been created.
5. Liberalisation of ECB policies: Corporates implementing
infrastructure projects were eligible to avail ECB upto USD 500
million in a financial year under the automatic route. This limit
has been raised to USD 750 million.

EPC and PPP

1. EPC model
1. EPC stands for engineering, procurement and construction. In this
model the project is awarded to the private players through a
bidding process. Unlike the BOT model, Government funds the
entire project under EPC and a developer undertakes the
necessary construction work. In many instances, the Government
becomes the firm’s only customer and promises to purchase at
least a predetermined amount of the project’s output.
2. Why EPC is preferred over PPP (BOT)
1. Lack of financial viability, delay in project clearances and
approval and the slowdown in the economy has prevented private
players from taking up large infrastructure projects on a PPP
basis.
2. The possibility of unnecessary litigations has also discouraged the
private sector to enter into PPP contracts with the government.
3. Whereas in the EPC mode entire investment is made by the
government and a private player is the contractor for construction.
4. Further EPC promises guaranteed prices, timeline for the
completion, single point of responsibility and higher control.
3. Problems in PPP
1. The present contracts consider only fiscal returns without
incentivising the efficient service. In this case the contractor
simply charges the user more to pay the government but does not
bother to look for efficient delivery of service.
2. In the absence of any other credit mechanism, Government
provides the bidder viability grant to meet the immediate
 requirements. But in case of non-performance of these projects,
Government has no leverage to recover the costs incurred.
3. Unjustified risk allocation to unmanageable entities. For example,
in case of highways, ports and railways the traffic demand is not
in the control of operators but risks associated with low traffic are
imposed on these operators.
4. There are no structures available for renegotiation. Any attempt
by bureaucrats for renegotiation are doubted as cases of
corruption whereas stalled projects did not subject to any scrutiny.
Hence they prefer inaction.
5. Contracts are unable to enforce market discipline and discourage
reckless bidding. Hence, bidders don’t bother to index their bids
properly with respect to fluctuations such as oil prices and other
raw material costs.
6. Not all projects are feasible because of political reasons, legal
reasons, commercial viability, etc.
7. The private sector may not take interest in a project due to
perceived high risks or may lack technical, financial or
managerial capacity to implement the project.
8. A PPP project may be more costly unless additional costs (due to
higher transaction and financing costs) can be offset through
efficiency gains.
9. Change in operation and management control of an infrastructure
asset through a PPP may not be sufficient to improve its economic
performance unless other necessary conditions are met. These
conditions may include appropriate sector and market reform, and
change in operational and management practices of infrastructure
operation.
4. Kelkar commitee proposed reforms
1. Governance, Institutions and Capacity, enumerated as the 3 pillars
of the PPP framework, were essential for institutional capacity
building activities, hence should be vitalised.
2. Government may develop a PPP law with endorsement from
Parliament. It gives an authoritative framework to implementing
executives.
3. For evaluating stressed PPP projects in a time bound
manner, Infrastructure PPP Project Review Committee (IPRC) is
 proposed.
4. Swiss Challenge method of awarding contracts should be
avoided to discourage unsolicited proposals.
5. The “One-size-fits-all” approach should be avoided and project
specific risk assessment should be undertaken.
6. The Prevention of Corruption Act, 1988 should be amended at the
earliest to punish corrupt practices while saving those who made
genuine mistakes in decision making.
5. Other reforms
1. Allocate development and maintenance to the same player to
avoid the problems of poor quality of project.
2. Financing structures should be able to attract pension and
insurance funds, which are a natural funding source for long term
infrastructure projects.
3. Risk should be transferred to only who can manage. For example,
in case of telecom projects and individual port terminals demand
can be controlled via tariff and quality of service but in case of
highway projects, demand risk cannot be on the shoulders of
operator.
4. Renegotiation commision need to be established for revival of
stalled projects and also to offer the easy exit for players suffer
from insolvency.
6. 3P India
1. Government is in the process of setting up 3P India with a corpus
of Rs. 500 crore to provide support to mainstreaming PPPs and to
enable focussed attention on accelerating the delivery of efficient
PPPs.
2. It is suggested that the task for restructuring of the PPP contracts
may be entrusted to this body that may house specialized skills in
the area.
3. The institution may have experts from a wide background
including industry, financial institutions, lenders, etc. with the
requisite skill sets.
4. It may also evolve PPP models to enable attracting private
investments in sectors like Railways, airports and also social
sectors.
5. This entity could also assist project promoters in identification,
 structuring and hand holding for a designated fee.

Hybrid annuity model (HAM)

1. The Hybrid Annuity Model (HAM) is a mix of Engineering

Procurement Construction (EPC) and Build Operate and Transfer
(BOT) formats, with the government and the private enterprise sharing
the total project cost in the ratio of 40:60, respectively. Government
releases 40% of total project cost, in five tranches that are linked to
milestones. Balance 60% is arranged by developer – who usually
invests ≤ 20-25% of project cost and raises the remaining amount as
debt.
2. Some salient features of HAM

1. The government would partially fund the contractors (40%).

2. The maintenance of the project will be carried out by the
government and a fixed annuity would be provided to the
contractors.
3. Necessary land acquisition and environmental clearances would
be handed over to private contractors prior to the commencement
of project.
4. The model would prevent instances of viability gap
funding (VGF) given to contractors under BOT and hence
increase their accountability.
4. How HAM is an improvement over EPC

1. In HAM, the government would partially fund the project, as

compared to complete funding under EPC model. Therefore
reducing the burden on the exchequer.
2. It spreads the risk between developers and government. Also, the
government provides viability-gap funding (VGF).
3. Moreover all regulatory clearances risk, compensation risk,
commercial risk and traffic risk is borne by government, so risk
for private sector is also minimal.
4. Here the government would shoulder the responsibility of revenue
collection and refund the amount in instalments over a period of
10 years in 20 equated instalments.
5. Challenges

1. HAM is still a new model. So government should test it, improve

it and refine it, before it goes big.
2. Participation has to be increased more to start the positive
feedback loop, where old contractors return. Then more
participation and competition will increase the confidence.
3. In HAM only part of the funding problems (40%) are de-risked.
4. Over indebtedness of corporate sector along with uncertain global
economic conditions makes corporate sector participation timid.
5. These long term projects need long term saving sources such as
pension and life-insurance funds. The reforms in this sector have
to be speeded up.
[Link] and Technology
Science and Technology in India

1. India boasts of many contributions such as the first use of zero as

revealed by the Bakshali manuscript. However, India now needs to look
ahead of its past laurels and move from being a net consumer of
knowledge to becoming a net producer as it emerges as one of the
world’s largest economies. According to WIPO, India is the seventh
largest patent filing office in the world. However, India produces fewer
patents per capita.
2. Current situation
1. India has become a major destination for outsourced R&D
activities. We currently have more than 1,100 R&D centres set up
by MNCs such as IBM, Google, etc.
2. Indian scientists are at the forefront of some global
groundbreaking work. For example, 37 Indian scientists from nine
Indian institutions played a key role in the discovery of
gravitational waves that received the Physics Nobel prize in 2017.
Indian scientists also contributed to the discovery of a neutron star
merger at Laser Interferometer Gravitational Wave Observatory
(LIGO), USA.
3. The development of Brahmos, advanced air defence supersonic
interceptor missiles, diverse missiles and rocket systems, remotely
piloted vehicles, light combat aircraft (LCA), etc., are brilliant
examples of India’s progress in strategic and defence
technologies.
4. India now ranks amongst a handful of nations that have credible
capabilities in the field of space technology. The upgrading from
SLV to ASLV and PSLV to GSLV, the first moon orbiter project
Chandrayan-1, Mars Orbiter Mission (MOM) at the cheapest
price and the recent simultaneous launch of 104 satellites are
India’s significant achievements.
5. India is now the third largest country in terms of the number of
start-ups. The government has set up the Atal Innovation Mission
(AIM) to transform radically the innovation, entrepreneurship and
start-up ecosystem.
3. Importance
 1. Science, technology, and innovation have instrumental and
intrinsic value for society. They are key drivers of economic
performance and social well-being.
2. It is also important for driving scientific temper, with its spirit of
enquiry, the primacy accorded to facts and evidence, the ability to
challenge the status quo, the adherence to norms of discourse and
the elevation of doubt and openness.
3. The open spirit of inquiry that is fundamental to science can
provide a bulwark against the darker forces of dogma, religious
obscurantism, and nativism that are threateningly resurfacing
around the world.
4. It is also essential for human security, for combating climate
change as well as national security threats ranging from cyber
ware to autonomous military systems such as drones.
4. Challenges to research in India
1. R&D expenditures has remained stagnant at 0.6-0.7% of GDP
over the past two decades. This is well below other countries such
as US (2.8), China (2.1), Israel (4.3) and Korea (4.2). Central
government undertakes almost entire R&D expenditure with
limited State government spending but spending by state
governments is needed especially for application oriented R&D
aimed at problems specific to their economies and populations.
2. The share of the private sector in R&D investment in most
technologically advanced countries is as high as 65 percent to 75
percent, it is only about 30 percent in India.
3. There is a disconnect between the teaching and research enterprise
with research being concentrated in specialized research institutes
and universities playing largely a teaching role. This has led to a
situation where universities have students but need additional
faculty support, while research institutes have qualified faculty but
are starved of young students.
4. Our education system has so far not focused on cultivating a
scientific temperament at an early age. In comparison to China,
there are less than half Indian STEM PhD students in the US.
Fewer students have been enrolling for such degrees either due to
lucrative career options after master’s degree or rising work visa
challenges.
 5. Many Indian students prefer to major in engineering rather than
science, because of the promise of lucrative industrial career
opportunities.
6. There has been poor progress in the development and deployment
of affordable technologies for rural areas, particularly in
agriculture, agro-processing, micro irrigation, etc.
7. The public procurement system is heavily biased in favour of
experienced and established products and technologies. This
strongly discourages new and innovative technologies offered by
start-ups, who do not get much- needed support from government
procurement.
8. “Lab to Land” time is too long. Renowned public funded
institutions like (CSIR) have developed many frontline
technologies. However, the rate of transfer of these technologies
to industry and for societal benefits is low.
9. The adoption of indigenous innovations by Indian industry is not
very encouraging. Frequent violation of Preferential Market
Access (PMA) is an issue leading to large-scale imports of foreign
products and services.
5. Government efforts
1. Prime Minister Research Fellows (PMRF): It is a PPP between
Science & Engineering Research Board (SERB) and
Confederation of Indian Industry (CII) which aims to improve the
quality of research by attracting the best talents across the country
and reduce brain drain.
2. IMPRESS scheme aims to identify and fund research proposals
in social sciences with maximum impact on the governance and
society.
3. SPARC aims to boost joint research with global universities from
28 countries and get international expertise to solve major
national problems, train Indian students in the best laboratories.
4. IMPRINT is a national initiative of MHRD which aims to
address engineering challenges in 10 technology domains relevant
to India through an inclusive and sustainable mode.
5. Atal Innovation Mission (AIM) is a flagship initiative set up by
the NITI Aayog to promote innovation and entrepreneurship
across the length and breadth of the country.
6. Way forward
1. India needs to double its national expenditure on R&D with a
larger share coming from private sector and universities. The
metrics need to go beyond paper and publications to providing
value for society.
2. The private sector should be incentivised to both undertake and
support R&D through CSR (Corporate Social Responsibility)
funds. Government can also partner with private sector to create
new R&D funding opportunities such as 50:50 partnerships with
Science and Engineering Research Board (SERB) for industry
relevant research under Ucchtar Avishkar Yojana (UAY).
3. Link national labs to universities and create new knowledge
ecosystems. Better synergy between universities and research
institutes would fill the gaps of faculty support and young talents
and ensure deep commitment to excellence.
4. India should leverage its scientific diaspora. India has the
opportunity to attract back more scientists with growing strength
of India’s economy and anti-immigrant atmosphere in some
countries. There has been an increase in scientists returning to
India. Schemes like INSPIRE, VAJRA can act as a catalyst in
leveraging the scientific diaspora. The inducements should be to
allow them to do good research.
5. Take a more mission driven approach to R&D in some areas like
agriculture, genomics, cyber physical systems, etc.
6. Improve the culture of research. Indian science and research
institutes need to inculcate less hierarchical governance systems
and encourage risk taking and curiosity in the pursuit of
excellence. There should be greater representation of younger
scientists in decision making bodies.
7. National laboratories and other publicly funded R&D institutions
need to make much stronger efforts to engage with the public
through the media or through regular tours and lectures and create
broad public support for their work.
8. To bring vibrancy to frugal innovations, a non-lapsable “District
Innovation Fund” with a corpus of about INR 2 crore in each
district may be created and used to promote grass root
innovations.
Schemes for women in the field of S&T

1. Department of Science And Technology (DST) initiated exclusive

schemes to enable women to pursue a career in R&D in Science and
Technology (S&T) only in the year 2002. One of the major reasons for
gender gap in scientific R&D was the break in career that many women
had to face due to familial compulsions like marriage, child birth,
looking after old or ailing parents, children's education and so on.
2. DST has launched DISHA Programme for Women in Science to
 address these issues and made focused efforts to facilitate the re-entry
of such women to mainstream science.
3. In 2014, DST restructured the women specific programmes under one
umbrella called “KIRAN (Knowledge Involvement in Research
Advancement through Nurturing). Through KIRAN, DST is not
only addressing various issues related to women scientists
(unemployment, break-in career, relocation, etc.) but is also aimed at
providing opportunities in research, entrepreneurship, science
communication, etc.
4. Consolidation of University Research for Innovation and Excellence in
women universities (CURIE) is another component of KIRAN that has
a focus to develop state-of-the-art infrastructure to help large number of
women to enhance their S&T skills besides promoting research culture
in such institutions.
5. KIRAN is also providing budgetary support for creating Women
Technology Park (WTP) where appropriate S&T packages for women
are developed to improve livelihood and health & nutrition besides
reducing drudgery in order to enhance their quality-of-life. KIRAN has
more holistic approach and inclusiveness and gives more career options
to women through new components, namely mobility as well as training
in science communication, entrepreneurship, and leadership.
6. Indo-U.S. Fellowship for Women in STEMM (Science, Technology,
Engineering, Mathematics and Medicine): It will provide opportunities
to Indian Women Scientists, Engineers & Technologists to undertake
international collaborative research in premier institutions in U.S.A
7. UDAAN launched by MHRD to address the lower enrolment ratio of
girl students in science and engineering colleges.
8. Biotechnology Career Advancement and Re-orientation Programme
(BioCARe) is an initiative of Department of Biotechnology, it mainly
focuses on career development of employed/unemployed women
Scientists upto 55 years of age.

Contribution of Indians to science and technology

IPR
IPR

1. Reasons for improvement India’s IP regime

1. Accession to IPR related international treaties, Ex: India accession
to WIPO Performances and phonograms treaty.
2. Consent to initiate a Patent prosecution Highway (set of initiatives
for providing accelerated patent prosecution procedures by
 sharing information between some patent offices) with
international offices.
3. Dedicated set of IP incentives for small business enterprises. Ex:
GI tags given to Alphonse Mangoes, Nilambur teak etc.
4. A strong awareness raising effort on the negative impact of piracy
and counterfeiting. Ex: Mascot IP Nani by Ministry of Commerce
and Industry is a tech-savvy grandmother who helps the
government and enforcement agencies in combating IP crimes.
5. To encourage for innovation and seek protection for their
inventions, a 50 percent fee reduction has been provided.
6. Filing of patents and trademarks applications has been made
online.
7. Almost all old Intellectual Property (IP) records have
been digitised and new records are digitized immediately.
8. Automated electronic modules have been adopted to process
Patents and Trademarks applications which enabled achieving
enhanced speed, accuracy and transparency.
9. IP office has been transformed to enhance efficiency in processing
of applications, uniformity and consistency in the examination of
applications, bilateral cooperation at the international level, and
raising awareness level of public.
10. To increase transparency and dissemination of information, the
real time status of IP applications and e-registers is now open to
the public MSMEs.
2. Existing flaws in India's IPR regime
1. Traditional knowledge is ignored.
2. Section 3(d) of patent act. This section prevents multinational
companies ever-greening their patents simply by making minor
changes.
3. Compulsory licensing. Government can give to domestic
companies a license to produce a patented drug in emergency
circumstances.
4. Drug Price Control Order.
5. Food security vs IPR.
3. Features of IPR policy, 2016
1. Establishment of cell for IPR Promotion and Management to
function under the DIPP for creation and commercialisation of IP
 assets. State level cells to be created to prevent IPR thefts.
2. Legal and Legislative framework to have strong and effective IPR
laws, which balance the interests of rights owners with larger
public interest. Administration and implementation of IP related
laws brought under DIPP.
3. Major national institutes to make IPR studies compulsory.
4. IPR awareness to create public awareness about the economic,
social and cultural benefits of IPRs among all sections of society.
5. Commercialisation of IPR to get value for IPRs through
commercialization.
6. Enhancing access to health care, food security and environment by
leveraging IP. Human Capital Development to strengthen and
expand human resources, institutions and capacities for teaching,
training, research and skill building in IPRs.
4. Significance
1. Proposed cell would create a single window system for promotion,
awareness and utilisation of IP in the country.
2. It will create conducive environment for R&D which will enhance
creativity and innovation of indigenous products like medicines. It
will facilitate a stable, transparent and service oriented IPR
administration in the country.
3. The policy needs to be commended for taking note of our informal
economy and the need to encourage the creativity found within.
4. The policy recommends that the unauthorised copying of movies
be criminalised.
5. It will increase awareness on IPR in India and its about
economical, social and cultural benefits by strengthening and
expanding human resources.
5. Criticism
1. The entire edifice of the present IP policy is built on this flawed
foundation equating more IP with more innovation. IP could
accelerate innovation in some sectors while it impedes innovation
in others.
2. The policy also ignores the fact that at present, a large number of
patents are owned by foreigners and, therefore, any easing of rules
for patent protection would benefit them much more than
domestic applicants.
3. The policy advocates that publicly funded scientists and
 professors must convert all of their discoveries into IP assets. Elon
Musk dedicated inventions to public which helped in the growth
of automobile industry. Scientists like Benjamin Franklin and J.C.
Bose shunned patents owing to their potential to curb the free flow
of knowledge.
4. Time cost of IP registrations exceeds royalties.
5. No doubt films require some protection from pirates, but
criminalising of what is essentially a civil wrong is an over
reaction.
6. The policy proposes to convert each piece of our traditional
knowledge into an IP asset. We must first study whether GI
resulted in substantial benefits to any community.
6. A strong IPR regime can transform India into a creative and innovative
society. IPR regime must be carefully regulated to ensure that the
benefit of IPR accrues to Indian society rather than to west.

Geographic indicators

1. Geographical indicators refer to goods as originating in a specific

geographical region. So, the characteristics, qualities or reputation
thereof essentially attributable to such region. Ex: Scotch Whisky from
Scotland, Darjeeling tea etc.
2. Potential of Geographical Indications
1. GIs support and protect local production. They help us in
generating local employment and are mostly untouched by
industrialisation, originating in villages or small towns.
2. Since consistent quality is a must in GI-branded goods, producers
are expected to diligently follow specific production methods
which leads to better quality control.
3. Many European GIs have also successfully built up ancillary
industries like tourism and lodging in the respective regions.
4. GIs can boost our exports.
5. GI-branded goods can be made 100 percent in India without the
need for any foreign direct investment (FDI) and that they can
promote socio-economic development of the respective regions.
GIs are perhaps the most ideal IP rights to foster and realise a
programme like Make in India.
 3. Measures needed to strengthen GI
1. Current Indian legal framework for GIs needs to be strengthened
to address quality control and consumer expectations by insisting
on multi-layered quality control systems as a precondition for
registration.
2. Give a competitive advantage to producers and enable consumers
to make more informed choices by providing clear information on
origin specific products and their characteristics.
3. Important issues faced by GI producer bodies like market access
and funding for enforcement and marketing need to be addressed.
4. Correcting the definition of producer under the GI Act, which is
currently ambiguous and can mean either local manufacturer,
retailer or dealer.
4. Still a greenhorn in GI protection, India must hand hold producer
bodies, look at successful models elsewhere and mould these to suit the
ground realities of protection and enforcement in a developing country.

Fourth industrial revolution

1. Fourth Industrial Revolution (4IR) is characterised by a fusion of

technologies that blur the lines between physical, digital, and biological
spheres. It is marked by advances in robotics, artificial intelligence,
nanotechnology, quantum computing, Internet of Things (IoT), 3D
printing and autonomous vehicles, etc.

Bio-Technology

1. Biotechnology harnesses cellular and bio-molecular processes to

develop technologies and products that help us to improve our lives. In
accordance with its various applications, branches of Biotechnology
have been derived namely -Blue biotechnology (marine and aquatic
application), green biotechnology (agriculture processes), red
biotechnology (medical) and white biotechnology (industrial).
2. Applications
1. Medical Biotechnology: Producing medical products that can be
used for the diagnosis, prevention, and treatment of diseases. Ex:
 Antibiotics. Gene therapy involves correction of a genetic disorder
through delivery of a normal gene into the individual.
2. Animal Biotechnology: To improve the productivity of livestock
and also for development of affordable new generation vaccines
and diagnostics against a plethora of animal diseases.

3. Challenges
1. Low Research and development: India's research and
development expenditure is quite low at 0.6-0.7% of GDP.
2. Intellectual Property Right regime: First issue lies in Section
3(d) of the Patents (Amendment) Act, 2005, which sets a
higher standard for patentability than mandated by TRIPS. Second
issue is that of compulsory licensing, which gives the government
power to suspend a patent in times of health emergencies.
3. Lack of Marketisation: Most of the early research funding, often
provided by universities or the government, runs out before the
marketisation phase.
4. Public Awareness: Lack of public awareness of the modern tools
of biotechnology and how it could improve our well-being, offer
food and energy securities and help in preserving our
environment.
5. Regulatory Authority: The Biotechnology Regulatory Authority
of India Bill which envisions creating Regulatory body for uses of
biotechnology products is pending in the parliament since 2008.
 [Link] Lucrative: The number and quality of jobs offered by this
sector is presently lesser than the work force supply available.
This is making students less interested in this sector.
4. Way forward
1. Strategic Road Map: There is a need for development of a
strategic roadmap for biotechnology where competitive areas and
needs for industry-based R&D.
2. Collaboration between government and industry.
3. Ecosystem of innovation: With growing convergence of
disciplines it is important for the Universities to evolve an
ecosystem in which scientists, innovators and future entrepreneurs
could be nurtured.
4. Specialised Human Resources: There is a need for development
of specialised human resources along with increasing the number
and quality of jobs offered by this sector.
5. Collection and Integration of Data: Life sciences researchers
face the problems of bringing various data together and further
integrate the data for using the different technologies.

GM crops

1. GM crops involves insertion of genes of organism from another

biological kingdom in order to achieve desired results. India is at the
4th global position in hectarage under GM crops. The recent
moratorium placed on cultivation of GM Mustard has re-ignited the
debate whether these GM crops be grown. Genetic Engineering
Appraisal Committee (GEAC) asked Maharashtra Government to
initiate action to stop cultivation of illegal Herbicide-Tolerant variety of
Bt Cotton (Bt cotton).
2. Benefits of GM crops
1. Better tolerance to harsh climatic conditons like, heat, drought,
salinity etc. It also prevents of loss species to endemic disease.
2. GM crops are superior crops as they generate better yields and are
resistant to pests and diseases. Country’s cotton production has
gone up more than 21 times since Bt hybrids were first planted in
2002. This benefitted farmers immensely.
3. India imports thousands of tons of GM edible oil every year with
 no evidence of health effects or deaths due to genetic alterations.
This will reduce our import burden.
4. GM crops offer a solution to further enhance the India’s food
security needs. Food with more desirable traits can be produced.
Ex: Golden rice with Vitamin-A.
5. Bangladesh has allowed Bt Brinjal and there have been no side
effects yet. However, still there remains some concerns.
6. US concluded that many American farmers have achieved weed
control and reduced losses from insect pests due to usage of BT
crops.
3. Reasons for opposition
1. Introduction of GM crop is a method by which large seed
producing companies attempt to monopolise the markets. GM
seeds are found to carry a terminator gene that terminates the seed
after a year or two.
2. GM require more water, fertilisers unlike what they are always
advertised to. In the last decade, more than 250,000 farmers have
killed themselves because of Monsanto’s costly seeds and
pesticides.
3. Experts worry that extensive use of GM crops can wipe out crop
diversity and ecosystems. GM crops harms bees and other small
insects which helps in pollination along with harmful insects.
4. There has been witnessed a decline/stagnation in yield after few
years with respect to many GM crops which in turn leads to
diminishing returns.
5. The migration of genes from GM plants into conventional crops
or wild species may have an indirect effect on food safety and
food security.
6. There is always a concern of pathogens becoming resistant to
the toxins produced by GM crops. For example the pink bollworm
has grown resistant to the toxins produced by BT cotton seed of
Monsanto.
7. The GEAC does not conduct the closed field trials on their
own. There is still opacity and there is no public data on effects of
GM on human health, food chain, allied sectors, etc.
8. People have apprehension as some studies found that GM crops
brings pre-mature growth in children and other side effects. Also,
 cattle feeding on GM crops becomes sterile has also been found.
4. Consultation with state governments on the issue given that agriculture
is a state subject. Grievance redressal of all stakeholders before
introduction of the GM crop. There should also be a liability clause,
that is, if something goes wrong the liability should be fixed statutorily
like in case of US law.

Gene editing
Challenges in Gene editing

1. Against the order of the nature.

2. Available only to the rich, which perpetuate income inequalities.
3. Concerns over ‘Designer Babies’.
4. Genome-Editing Research Involving Embryos.
5. Safety concerns have been raised regarding genome editing in human
germline.
6. A ‘gene drive’ can propagate a set of genes with negative traits
throughout a population which may lead to disappearance of whole
targeted population with severe ecological consequences.
7. At present there is no regulating body to keep a check on the practices
and applications of the technology. There are at present no standard
norms for standardisation of norms for clinical trials for checking the
efficacy of the treatment.
8. The precise genetic modifications obtained through CRISPR-Cas9
technique makes it more difficult to identify a genetically modified
organism once outside the lab.
 1. Nuremberg code: It is established in 1947 in response to the
Nuremberg trails related to atrocities of Nazi Germany. This code is the
founding document of modern bio-ethics.
2. It is important to have continuing public deliberation to decide whether
or not germline editing should be permissible.

Nano-technology

1. Nano-science is the study of materials which are in nanoscale range (1-

100 nanometres). Conversion of any material in nanoscale results in
alteration of its physicochemical, biological, mechanical, optical,
electronic, etc. properties which can be utilized for different useful
activities.
2. Nano-Pharmaceuticals
1. Nano-pharmaceutical is an emerging field that combines
nanotechnology with pharmaceutical and biomedical science with
the goal of targeted drug delivery which may improve efficacy
and safety profile.
2. Precision targeting via nano-pharmaceuticals reduces toxic
systemic side effects, resulting in better patient compliance.
3. They offer the ability to detect diseases at much earlier stages.
4. Nano pharmaceutical reduces the cost of drug discovery, design
and development and enhances the drug delivery process.
3. Applications of Nanotechnology
1. Medical field: Disease diagnosis (detect cancer, bacterial and
viral infection), drug delivery, Superbugs and anti-microbial
 resistance (Nanotechnology holds the key to stopping antibiotic-
resistant bacteria and the deadly infections they cause).
2. Defence: Possible supplement to traditional weaponry for close
combat situations. Precision guiding tools for snipers and
others who use fire motor shells.
3. Agriculture: Anti-microbial nano-emulsions are used
for decontamination of food equipment. Bio indicators can be
used to detect the bio magnification of pesticides and fertilizers.
4. Water treatment and remediation: Nano-membranes are used
for water purification, desalination and detoxification. Nano-
sensors for the detection of contaminants and pathogens.
5. Construction: Nano-molecular structures to make asphalt and
concrete more robust to water seepage. Heat-resistant nano-
materials to block ultraviolet and infrared radiation.
6. Energy: Photovoltaic cells and OLEDs based on quantum
dots. Carbon nanotubes in composite film coatings for solar cells.
4. Challenges in Nano-technology
1. Health and environmental impact. They disrupt cellular,
enzymatic and other organ related functions posing health
hazards. They are non-biodegradable.
2. Information asymmetry between developed and developing
countries.
3. Lack of infrastructure and human resources. There is poor lab
firm integration, which is compounded by the scarcity of skilled
manpower.
4. High costs of technology due to IPR.
5. Governance issues because nanotechnology is multi-disciplinary
and inter-disciplinary.
6. Ethical consequences For instance nanotechnology may be used
in warfare, may invade people’s privacy, or may impinge on the
relationship between human beings and technology.
5. Nation Mission on Nano Science and Technology (Nano Mission)
1. It is an umbrella programme for capacity building which
envisages the overall development of this field of research in the
country and to tap some of its applied potential for nation’s
development.
2. Basic research promotion by creation of centres of excellence for
 pursuing studies.
3. Infrastructure Development for nano research by establishing a
chain of shared facilities across the country.
4. Promoting application-oriented R&D Projects, Nano-Technology
Business Incubators etc. Special effort will be made to involve the
industrial sector into nanotechnology R&D directly.
5. Human Resource Development through effective education and
training to researchers.
6. International Collaborations through Joint research
projects, academia-industry partnerships.
6. Nanotechnology could be both relevant and appropriate to sustainable
development practices in India. Therefore, it is necessary to develop
responsible nanotechnology governance.

Space and space missions

1. Indian achievements in Space science and technology have been

propelled by ISRO. From India’s first satellite Aryabhatta (1975) to the
development of indigenous cryogenic engine India has made significant
advances with little help and no technology sharing from developed
countries.
2. ISRO's thrust areas
1. Satellite communication: It is to address the national needs for
telecommunication, telemedicine, broadcasting and broadband
infrastructure. INSAT and GSAT are the backbones of India’s
satellite communication.
2. Earth Observation: Beginning with the Indian Remote Sensing
(IRS) series in the 1980s, today the RISAT, Cartosat and
Resourcesat series is backbone of this. It is to use space based
imagery for weather forecasting, disaster management and
national resource mapping and planning. These resources cover
agriculture and watershed, land resource, and forestry
managements.
3. Satellite-aided navigation: The GPS-aided GEO augmented
navigation (GAGAN) is a joint project between ISRO and AAI. It
improved accuracy and integrity, primarily for civil aviation
applications and better air traffic management over Indian
 airspace. This was followed up with the Indian Regional
Navigation Satellite System (IRNSS).
4. Space science and exploration missions: It includes the
Chandrayaan and the Mangalyaan missions, with a manned space
mission, Gaganyaan, planned for its first test flight in 2021. These
missions are not just for technology demonstration but also for
expanding the frontiers of knowledge in space sciences.
5. Launch vehicle technology: Beginning with the Satellite Launch
Vehicle (SLV) and the Augmented Satellite Launch Vehicle
(ASLV), ISRO has developed and refined the PSLV as its
workhorse for placing satellites in low earth and sun synchronous
orbits. The GSLV programme is still developing with its MkIII
variant and is capable of carrying a 3.5 MT payload into a
geostationary orbit. Recently, ISRO has tested RLV-TD to cut
down launch costs. ISRO is developing a small satellite launch
vehicle (SSLV) expected to be ready in 2019.
3. Achievements of Indian space science and technology
1. Polar Satellite Launch Vehicle (PSLV) is one the most reliable and
affordable launch vehicles. It has become the favorite launch
vehicle of developed nations also. Its low cost and high reliability
has gained it worldwide preference. Launch of 104 satellites by
PSLV has set a world record.
2. India's Chandrayaan mission sent was aimed to understand the
chemical characteristics and topography of Moon. Chandrayaan
even managed to hoist the Indian flag on the moon. India is the
first country to be able to reach Mars in the very first attempt
made. The budget for Mars Orbiter Mission (Mangalyaan) was
approx 450 crores which makes it the least expensive mission to
Mars in 2014.
3. NAVIC (Navigation with Indian Constellation) aims to provide
reliable co-ordinates for military and civilian application.
4. Development of fuel efficient Scramjet engine is considered as a
feat which would further decrease the cost and allow launcher of
heavier satellites at lesser cost.
5. ISRO has indigenously developed cryogenic engine for deploying
in GSLV MK-III. GSLV now can be used for launching heavy
satellite and future man missions to mars. The GSLV Mk III
 rocket carried a satellite weighing more than three tonnes into a
high orbit above Earth.
6. Built at a low cost of 95 crores, the Reusable Launch Vehicle by
ISRO was meant to reduce the cost of satellites by reusing the
space shuttles.
4. Socio-economic development
1. Remote sensing sattellities such as RESOURCESAT have
provided information about water bodies, cropping patterns, farm
lands, forest cover, disaster management, drought management,
flood forecasting, mineral prospecting, monitoring and
supervision of mining, rural and urban spread etc. There inputs
have enabled better policy decisions.
2. Metrological satellites such as SCATSAT and Automatic Weather
Station (AWS) provide hourly information on critical weather
parameters.
3. Communication satellites (INSAT) are used for a range of
functions including television broadcasting and meteorological
imaging. It plays important role in delivering cyclone warning and
in search and rescue operations. INSAT has enabled the spread of
DTH internet services, e-governance applications.
4. NAVIC through IRNSS (Indian regional Navigation System) will
provide accurate real-time positioning and timing services not
only to India but 1500 km around Indian borders.
5. Telemedicine is another fart growing field which would bridge the
urban-rural divide in the field of health case.
6. Moreover, revenue generation by commercial applications would
also further enable the government to spend more to achieve
socio-economic goals.
5. Why is there so much interest on moon
1. Human Civilization: Extend human presence to the moon to
enable eventual settlement.
2. Scientific Knowledge: The Moon is the closest cosmic body to
pursue scientific activities that address fundamental questions
about the history of Earth, the solar system and the universe and
about our place in them.
3. Exploration Preparation: It is promising test bed to demonstrate
technologies, systems, flight operations required for deep-space
 missions for pursuing future missions to Mars and beyond.
4. Global Partnerships: Provide a challenging, shared and peaceful
activity that unites nations in pursuit of common objectives.
5. Economic Expansion: Expand Earth's economic sphere, and
conduct lunar activities with benefits to life on the home planet.
Moon is said to have huge reserves of Helium-3 which will cater
to future Earth's energy needs.
6. Public Engagement: Use a vibrant space exploration program to
engage the public, encourage students and help develop the high-
tech workforce that will be required to address the challenges of
tomorrow.
6. Chinese mission Chang’e-4 to unexplored part of the moon
1. Chang‘e4 landed on the Von Kramer crater within the South Pole-
Aitken basin, known to be the biggest depression in the solar
system. This is because scientists can see farther into space as
Earth‘s radiowaves can‘t get in the way.
2. Studying the composition of ancient craters such as the Von
Kramer can help scientists gain an insight into the asteroids that
rained down on the Earth during the planet‘s youth stage.
3. Dark side of the moon contain a treasure trove of information that
could advance our understanding of the history of the solar
system.
4. Moreover, Chang‘e4‘s success could help realise the long-held
astronomers dream of an observatory on the moon. The side
facing the Earth is not suitable for such a project because noises
from GPS satellites, Wi-fi, TV stations and many other human
interferences hamper the transmission of low-frequency messages.
But the Earth‘s satellite protects its far side from such noise.

National Policy of Electronics, 2019

1. The policy envisions positioning India as a global hub for Electronics

System Design and Manufacturing (ESDM) by promoting domestic
manufacturing, skill development, start-up, export ecosystem and
improving ease of doing business for the ESDM industry. It aims to
achieve a turnover of $400 billion and generate 1 crore jobs in the
ESDM sector by 2025.
 2. Strategy
1. Domestic manufacturing: By encouraging domestic
manufacturing through consistent tax incentives, establishing
Electronic Manufacturing Clusters, etc.
2. Promoting ease-of-doing business: By facilitating single
window mechanism for global investors using existing
mechanisms like Invest India, etc.
3. Encourage industry-led R&D: In all sub-sectors of electronics.
This would encompass support to various initiatives in areas like
5G, IoT Sensors, Artificial Intelligence etc.
4. Trusted Electronics Value Chain: To improve national cyber
security profile and control its supply chain across national
defense and critical national infrastructure like energy grids,
communication networks, digital economy etc.
5. Developing core competencies in the sub-sectors:
Electronics like Automotive Electronics Industry etc.
6. Electronic components Manufacturing ecosystem: Providing
incentives for lithium-ion cells, chip components, fuel cells,
optical fibre, solar cells etc.
7. Preferential market access by encouraging states: Adopt the
Public Procurement and leveraging the Government e-Market
Place (GeM) in the procurement of electronic products.
8. Other Measures: Human Resource development, acquiring mines
of Rare Earth Metals in foreign countries (Africa, Australia), Eco-
park for e-waste processing, etc.

Robotics

1. A robot is a machine especially one programmable by a computer—

capable of carrying out a complex series of actions automatically (self
or remote controlled). These are machines that can substitute for
humans.
2. Applications
1. Assembly robots used in manufacturing especially auto industry -
account for more than 50% of labour.
2. Military robot in dangerous environments (including bomb
 detection and de-activation).
3. Hospital robot used in low invasive surgeries.
4. Agri robots used in agriculture for precision farming, etc.
5. Home Appliances for cleaning, cooking, dishwashing, personal
assistants like Amazon Echo.
6. Nanorobots.
7. Swarm robotics used for coordination of multi-robot systems
which consist of many simple physical robots to achieve a desired
collective behaviour
8. Self driving cars.
3. Challenges in India
1. Loss of jobs.
2. Absence of hardware companies that can cater to businesses and
need to import
3. The cost of adopting Robotic technology is very high due to the
cost of procuring imported hardware components as well as
training personnel.
4. Scarcity of good faculty to teach the subject. Subject is not taught
to the engineering students in many colleges.
5. Scarcity of talent that specializes in the many disciplines such as
electrical, embedded, software and mechanical that make up
Robotics.
4. Govt Steps
1. Include robotics in Skill India Mission.
5. The advantages of robotics include heavy-duty jobs with precision and
repeatability, whereas the advantages of humans include creativity,
decision-making, flexibility and adaptability. Need for collaborative
robots and humans sharing a common workspace more closely and led
to the development of new approaches and standards to guarantee the
safety of the man-robot merger.

National Super Computing Mission

1. Recently CDAC designed and built PARAM Shivay, the first super
computer under the National Supercomputing Mission. The
supercomputer is a computer with a high level computational capacity
 compared to a general purpose computer. Performance of super
computing is measured in floating point operations per second
(FLOPS). India has 4 supercomputers in the Top-500 list of the world’s
top 500 supercomputers with Pratyush and Mihir.
2. Objective
1. To make India one of the world leaders in Supercomputing and to
enhance India’s capability in solving grand challenge problems of
national and global relevance.
2. To empower our scientists and researchers with state-of-the-art
supercomputing facilities and enable them to carry out cutting
edge research in their respective domains.
3. To attain global competitiveness and ensure self reliance in the
strategic area of supercomputing technology.
3. Provisions
1. The mission would be implemented jointly by Department
of Science and Technology (DST) and Department of Electronics
and Information Technology (DeitY).
2. Installing a vast supercomputing grid comprising of more than 70
high performance computing facilities.
3. These supercomputers will also be networked on the National
Supercomputing grid over the National Knowledge Network
(NKN). National Knowledge Network (NKN) connects academic
institutions and R&D labs over a high speed network.
4. Development of professional High Performance Computing
(HPC) aware human resource.
4. Application areas
1. Climate Modelling: Weather Prediction. Paths of hurricanes and
the probability of tornado strikes. India has become the only
country worldwide to have an Ensemble Prediction System (EPS),
running weather models at a 12-km resolution due to Pratyush.
2. Seismic Analysis: Disaster Simulations and Management.
3. Data Mining: Extract information from raw data gathered on the
ground. For example, businesses can analyze data collected from
their cash registers to help control inventory or spot market
trends.
4. Scientific Research: For example, Researchers at CERN, found
the Higgs-Boson particle by analysing the massive amounts of
 data generated by the Large Hadron Collider (LHC).
5. Computational Biology and Computational
Chemistry and Molecular Dynamics like Atomic Energy
Simulations.
6. Discoveries beyond Earth (Astrophysics).
7. Big Data Analytics.
8. Finance.
9. Information repositories/ Government Information Systems.
10. Large Complex Systems Simulations and Cyber Physical
Systems.
11. National Security/ Defence Applications.
5. Challenges
1. Limited funding.
2. Limited Hardware development.
3. Brain Drain.
4. Limited manufacturing capability.

Big data

1. Big data is a buzzword used to describe a massive volume of both

structured and unstructured data that is too large to process using
traditional software techniques. Big data is big in terms of volume,
velocity and variety.
2. Uses
1. NITI Aayog also echoed the idea of evidence based policy making
guided by Big data.
2. Big data is used to better understand customers and their
behaviours and preferences. This will also increase the customer
loyalty.
3. The computing power of big data analytics enables us to decode
entire DNA strings in minutes and will allow us to find new cures
and better understand and predict disease patterns.
4. Weather forecasting can be made more robust now, which can
lead to better agricultural growth.
5. Financial data analysing for banks, stock market, customised
service for special customers.
 6. Analysing and managing the NATGRID data which comes from
21 sources. This can help us in better intelligence. Big data also
helps us in fighting crimes and terrorism.
7. It can help in curbing trafficking in human beings. Increasingly,
traffickers make use of mobile phones, social media, online
classifieds and other internet platforms. Data from these
technologies could be collected and used to identify, track, and
prosecute traffickers.
8. Discoms in India are using data from last mile sensors to
implement measures of cutting down aggregated technical and
commercial losses.
3. Dangers posed
1. Data colonialism: Most of the data from developing countries
goes to servers located in the west. This is because of absence of
adequate regulations dealing with privacy. Thus western
companies continue to collect and use this data with impunity.
2. Cyber crime: Big data allows fraudsters to collect huge amounts
of data which can include credit card numbers and online banking
passwords.
3. Privacy: NSA’s PRISM program of the United States has put the
potential dangers of Big Data analytics. It can snoop on almost
every user in cyberspace.
4. Unreliable: Data collected is often unreliable and thus basing
decisions solely on that is risky. Inefficient infrastructure for data
collection and management is the main reason.
5. Data sharing: Data sharing is not prominent today thus
benefitting the status quoits.
4. Measures
1. Make laws on privacy to address citizen’s concerns regarding
privacy.
2. We shouldn’t rely solely on actionable information derived from
big data but a humane touch in decision making is required as
well.
3. Data pools should be maintained which should be in common
domain to enhance transparency, access and equity.
4. Source of data should be verified before using it to identify
actionable points.
 5. Big data is here to stay and it is up to us on how to utilise it in the
most efficient way possible. If handled properly it has the ability
to impact our lives in a positive way both socially and
economically.

Artificial intelligence

1.
2. In February, the Kerala police inducted a robot for police
work. Chennai got its second robot-themed restaurant, where robots not
only serve as waiters but also interact with customers in English and
Tamil. In Ahmedabad, in December 2018, a cardiologist performed the
world’s first in-human telerobotic surgery on a patient nearly 32 km
away. All these examples symbolise the arrival of Artificial Intelligence
(AI) in our everyday lives.
3. India ranks third in the world in terms of high quality research
publications in artificial intelligence (AI) but is at a significant distance
from world leader China.
4. Advantages
1. Niti Ayoog in its discussion paper on the transformative potential
of AI in India that said the country could add $1 trillion to its
economy through integrating AI into its economy.
2. Healthcare: Shortage of qualified healthcare professionals (0.76
doctors and 2.09 nurses per 1,000 population (as compared to
WHO recommendations of 1 doctor and 2.5 nurses per 1,000
population). Non-uniform accessibility to healthcare across the
country. Affordability. Patients sometimes die due to non-
 availability of specialised doctors. AI can reduce the distance
between patients and doctors.
3. Agriculture: Soil health monitoring and restoration, Crop health
monitoring and providing real time action advisories, effective
price discovery, etc.
4. Education: Adaptive learning tools for customised
learning, Predictive tools to spot student dropouts, Customised
professional development courses,
5. Smart Cities and Infrastructure: Smart Homes, AI driven
service delivery, reduce Cyber-attacks, traffic management.
6. Smart Mobility and Transportation: Reduce Traffic accidents
through smart warnings (90% of which are caused by preventable
human errors), autonomous trucking for movement of goods,
travel route optimisation, AI can help optimise parking, AI for
Railways to improve efficiency.
5. Challenges
1. India does not have a comprehensive legislation to regulate this
growing industry.
2. Low intensity of AI research. A recent NITI Ayoog paper
estimates that it has only around 50 top-notch AI researchers,
concentrated in elite institutions like the IITs.
3. There is lack of quality data in building smart AI tools. India lacks
this in sectors such as agriculture and health.
4. High resource cost and low awareness for adopting AI in business
processes.
5. Unclear privacy, security and ethical regulations. Predicting and
analysing legal issues and their solutions is not that simple.
Criminal law is going to face drastic challenges. What if an AI-
based driverless car gets into an accident that causes harm to
humans or damages property? Who should the courts hold liable
for the same?
6. Unattractive Intellectual Property regime to incentivise research
and adoption of AI.
7. The usage of AI can lead to loss of traditional jobs.
8. AI is still long way from surpassing human intelligence. It may
induce apathy in governance and may fail to comprehend diversity
of problems faced by people needing instant customisation.
 6. Way forward
1. Incentivising Core and Applied research in AI. Introducing AI /
ML in schools and colleges.
2. Creation of Centres of Excellence for Artificial Intelligence.
3. Accelerating Adoption of AI across the value chain in industries.
4. Digital literacy and AI skilling with special focus on urban
areas. Upgrade of existing systems so they are better integrated
with AI so that errors and chaos doesn’t occur later.
5. Establish a data protection framework with legal backing.
6. Should be initially used only in domains where processes are well
defined and have lesser human interface.
7. Bring all stakeholders on board like workers, civil society etc.,
before its induction.
8. Should be catalyst for local technology solutions and
manufacturing rather than imports.

Cyber physical systems

Cloud computing

1. Cloud computing is the practise of using a network of remote servers

hosted on the internet to store and process data, rather than having a
local server or a personal computer. It is a general term for anything
that involves delivering hosted services over the Internet.
2. Advantages
1. Efficient: It will make use of existing infrastructure, thereby
reducing duplication of cost and effort.
2. Cost reduction: Flexibility in hardware and software i.e., pay as
you use.
3. Location independence: It can be accessible from anywhere.
4. Re-usability: App developed by one department can be reused by
another with customisation.
5. Better service delivery: It will lead to faster service delivery with
less chances of error, like in DBT.
3. Challenges
1. Data security.
2. Need for high speed internet connection (essentially a big
constraint for a country like ours).
3. Universal standardisation required which makes interoperability
 among providers difficult as of now.
4. Dependent on service providers even for trivial applications.

Data localisation

1. RBI issued a directive advising all Payment System Operators (PSOs)

to ensure that the entire data relating to payment systems is stored
within databases located in India.
2. Data localisation is a concept that the personal data of a country’s
residents should be processed and stored in that country. It may restrict
flow entirely or allow for conditional data sharing or data mirroring. In
2018, a draft data protection law by BN Shri Krishna Committee also
recommended that all personal data of Indians have at least one copy in
India. It also defined a category of data as critical personal data, which
must be stored and processed only in India.
3. Need for data localisation
1. Economic development of the country. Data is the new oil, an
economic resource, fueling the 4th Industrial
Revolution. Domains of cloud computing, data analytics etc., can
become major job creators in future.
2. Localization would lead to a larger presence of MNC’s in India
overall, through local offices, and increase tax liability and open
more jobs.
3. With data localization, there is a scope of greater access to ‘public
data’ collected by companies (e.g. traffic data collected by like
Uber, street level data collected by Google Maps) for the
Government.
4. Maintain data sovereignty and citizens data privacy. With data
stored in remote servers, the accountability of service providers
(like Google, Facebook etc.) reduces as it is outside the purview
of Indian regulatory authorities. With data localization, regulatory
oversight on end-use of data will improve.
5. Issue of national security. Data localization will help law
enforcement agencies to get access to user data for investigation
and prosecution.
4. Challenges associated with localisation
1. Economic Costs: Cross-border data flows have contributed $2.8
 trillion to the global economy in 2014, set to increase to $11
trillion by 2025. Stringent localisation norms could affect
innovation & ease of doing business in India.
2. Security Concerns: Isolating payment systems from global data
network would reduce their operational efficiency and make
transactions prone to frauds, systemic risks or a single point of
failure.
3. Push to protectionism in global trade: It hampers a globalised,
competitive internet marketplace. It might trigger a vicious cycle
of data localisation requirements by other countries.
4. Privacy concerns: There is no evidence that data localisation
leads to better privacy or security. Threat of state surveillance and
misuse of personal data of citizens by the Government will
remain.
5. Cloud Computing Softwares: Cloud computing softwares have
taken advantage of the economies of scale and an infrastructural
architecture across the world.
5. Before universalizing the policy of data localization, the Government
needs to provide a push to local capabilities in data storage and
processing India should put in place in a cybersecurity law to ensure
protection of private data of citizens.

4G vs 5G
Block chain
Defence

1. Advantages of private participation

1. It will cut down on our imports saving valuable forex reserves. As
defence sector is evergreen, our exports will go up. India’s
defence budget was $40.4 billion last year. This can be reduced if
private players play a significant role.
2. It will lead to competition which was not present earlier.
Competition will enhance product innovation, technology
upgradation, quality control, export promotion, finance and human
resource management.
3. State-of-the-art production in India will modernise defence
industrial setup and give strategical advantages.
4. Generation of jobs that will come handy to both skilled workforce
and unskilled people. This can be a pillar to reap the benefits of
 demographic dividend.
5. Self reliance and curtailing over dependence on foreign suppliers.
We have had bad past experiences during wartime when we were
either denied supply of equipment or the services were
compromised.
6. We can develop defence equipment specially for our needs. Ex:
Siachen heights equipment, etc.
7. This will reduce corruption in defence deals as India may not have
to make foreign defence purchases. India has spent around $50
billion on defence purchases in the last decade.
8. Expertise in defence sector provides enormous spin-off benefits.
Over the years, as Israel developed capabilities in defence
electronics, it has also built a reputation in areas such as medical
equipment, digital communication and advanced agricultural
technologies.
2. Challenges to private participation
1. Private players in defence are restricted from participation in
foreign countries through rigorous export control laws by the
government of their home countries. Any technology transfer is
highly unlikely unless India succeeds in persuading the
governments in their home countries.
2. Financial allocation to R&D vis-a-vis capital acquisition in
defence budget has declined in past decade. FDI cap of 49% is
hindering the effective participation.
3. Requirements of the armed forces are not made known to the
private sector sufficiently in advance. This hinders private
enthusiasm.
4. India has been availing technology through licensing agreements,
which have been prohibitory for local development and reduced
defence PSUs role as maintenance agencies or manufacturer of
small arms.
5. Slow and complex decision making regarding defence
procurement and the lack of military inputs in decision making.
Land acquisition is another major challenge.
6. Defence industry continues to be dominated by companies based
in the US and western Europe, with firms from these areas taking
up the top 10 positions on the list of the biggest arms makers. This
 may pose various strategic concerns for India.
3. Government efforts
1. Government is placing its focus on indigenisation of the industry
and acquiring advanced technologies from abroad.
2. Under Make in India programme, the government has given
licences to many private companies to manufacture products for
the country’s defence needs.
3. Government has recently come up with Defence Procurement
Policy, 2016.
4. The new defence offset policy, whereby foreign suppliers of
equipment need to manufacture a certain percentage of their
products in India, has given Indian firms a chance to play partners
to global companies.
5. With a focus to give boost to indigenous private defence
manufacturers, Defence ministry recently took leap forward steps
by accepting the recommendations made by expert committee
headed by Dhirendra Singh.
4. Highlights of DPP 2016
1. Creation of Indigenously Designed, Developed and Manufactured
(IDDM) platforms, which will get top priority while buying
equipment and will be the first to be chosen for tenders.
2. Offsets clause increased from the current Rs.300 crore to Rs.2000
crore giving flexibility for foreign companies. Any greater value
of contract will be re-invested (30%) in Indian defence industries
which will help to upgrade indigenous technological capabilities
and know-how.
3. DPP-16 also states that 100% refund from the government, in case
of delay of procurement from vendor.
4. Defence ministry has also decided to fund private R&D, so as to
build a technology base.
5. Empowered committee is created to solve disputes or unforeseen
issues. But it is still without crucial chapters on strategic
partnerships and blacklisting norms in case of wrongdoing.
5. Steps to be taken
1. Bilateral talks need to be strengthened to persuade the foreign
government for allowing their defence companies to share their
critical technology and know how.
 [Link] of all discriminatory treatments, regressive tax regimes
and duties for local defence manufacturers vis-a-vis foreign
manufacturers.
3. Providing easy availability of land and capital without inordinate
delays and swift single window and time bound clearances.
4. Tax incentives and easy credit facilities need to be given to
generate interest and attract foreign manufacturers in defence
sectors.
5. Time is now ripe for creating accountability structures for such
leaks and corruption scandals.
6. Security infrastructure to be upgraded to avoid any data theft or
cyber hacks of classified data.
6. Why defence corruption exists
1. India imports a big chunk of its armoury and hence, the
probability of one or two out of the many transactions to involve
corruption, increases.
2. Defence procurement is giant plausible source of black money.
Black marketers make full use of the opportunity this sector
offers.
3. The institutes of Lokpal and Central Vigilance Commission are
not strengthened enough to take meaningful actions. Also the
audits of the CAG are post event evaluations.
4. Since there have been cases of corruption with the CBI too,
genuine investigation becomes all the more difficult.
5. Till the time the cases reach the courts, the probability of
manipulating or removing the evidences and witnesses increases.

Drones

1. Unmanned Aerial Vehicle or drone is an aircraft with no pilot on board.

They can be remote controlled or can fly on pre-programmed flight
paths. UAVs are currently used for a number of missions, including
reconnaissance and attack roles. Aside from defence utilities, plenty of
opportunities for civilian drone usage exist.
2. Opportunities in civilian sector
1. Disaster management: Tracking of cyclones, floods, epidemics
and range of disasters is easily possible with the use of UAVs.
 American authorities successfully used UAVs to track the
movement of Hurricanes. UAVs act as aerial eye for search and
rescue operations worldwide.
2. Conservation of environment: Tracking of migratory birds,
endangered species, anti-poaching mechanisms can easily employ
UAVs for better management of their activities in preventing
destruction of wildlife.
3. Uses in agriculture: Drones can help in precision agriculture.
Applications of pesticides, water, or fertilisers, can help by
identifying exactly where such resources are needed.
4. Commercial applications: Goods and service delivery is possible
with the help of UAVs. E-commerce and package delivery
platforms are using UAVs in American and European cities.
5. Law enforcement and firefighting: Surveillance and vigilance
purpose. Crowd, traffic and riots can be managed well with aerial
surveillance from UAVs. Recently Karnataka police used drones
to identify sand mining along the border.
6. Military uses: Indian military has drones like Lakshya, Daksh,
Rustom etc. Use it in difficult terrain like Siachen glacier.
7. Infrastructure: Drones can inspect tall structures and monitor
critical infrastructure such as ports and power plants.
8. Health care: Delivery of drugs to remote areas and can
complement tele-medicine initiatives.
3. Challenges
1. Use of drones for vigilance and surveillance has potential to
invade the personal space and privacy of civilian population.
Aerial imagery can be counterproductive in not worked out with
due care.
2. The airspace over Indian cities already has a high density of
aircraft traffic and unregulated use of drones poses a grave threat
for air collisions and accidents.
3. Another challenge lies in physical and electronic identification of
drones. Government is not equipped to track all kinds of drones,
especially small and micro drones. Drones flying below 1,000 feet
pose a challenge in this regard.
4. There are no standards for the manufacture of small and micro-
drones, resulting in UAVs with an exceptionally high failure rate.
 4. Way forward
1. Since drones are increasingly becoming part of a networked
environment, it is critical to give each drone a unique electronic
code, akin to an internet protocol address, for quick, easy and
clear identification.
2. UAVs of today are a precursor to next generation aerospace
technologies. Unless we bring in the right set of regulations, the
investors would be reluctant to take a leap of faith in the
development of the UAV industry.

Fortification of food

1. Fortification means externally adding required micro-nutrients to

already available food containing macro-nutrients. It ensures the
availability of complete nutrient diet to people.
2. India can adopt following methods
1. Adding set standardised level of micro-nutrients at production
level itself.
2. Availability of fortified and diversified food at mid-day meal in
schools and at Anganwadi level.
3. Ensuring availability of fortified food at affordable rates at fair
price shops.
4. Marking some specific food processing industries and make
fortification mandatory. Giving incentives like tax rebate to
industrial units involved in fortification of food.
5. Robust PDS strengthened by JAM trinity can be of great help.
3. Fortification addresses the following
1. It reduces the deficiency of iron in mothers which helps prevent
premature birth of child. According to WHO Iron-Fortified food
can help reduce the menace of maternal death caused by iron
deficiency.
2. It helps the growing child grow efficiently by providing them
micro-nutrients such as vitamin A and folic acids.
3. Zinc-fortified food can reduce the child death rate between six
months to 12 years caused by infectious diseases.
4. Wholesome cooked meal augmented with vegetables, dairy
 products improves the cognitive ability of children.
4. Nutritional food is imperative to a wholesome growth of population
which can further increase the all over production. In this way it is the
greatest tool to exploit the potential of Demographic Dividend.

Food irradiation

Transfats

1. Trans fats are a certain type of fatty acid that have what is known as a
“trans” chemical structure. Trans fats are made by adding hydrogen to
liquid vegetable oils (good for health unlike animal oils) to make them
more solid, and to increase the shelf life of foods. They are largely
present in Vanaspati, baked and fried foods.
2. Since they are easy to use, inexpensive to produce, last a long time, and
give foods a desirable taste and texture, they are still widely used
despite their harmful effects being well-known.
3. Why are they bad?
1. Trans fats raise bad (LDL) cholesterol levels and lower good
(HDL) cholesterol levels. Eating trans fats increases the risk of
developing heart disease and stroke. Globally, trans fats intake
leads to more than 500,000 deaths of people from cardiovascular
disease every year.
2. It’s also associated with a higher risk of developing type 2
diabetes.
 4. Steps to control trans fats
1. FSSAI has launched a new mass media campaign calling for the
elimination of industrially produced trans fats in the food
supply. Currently, the permitted levels of trans fats in vegetable
oils and hydrogenated vegetable oils is 5%, a percentage that
FSSAI wants to bring down to less than 2% by 2022. Called Heart
Attack Rewind, the 30 second public service announcement (PSA)
- the first mass media campaign of its kind
2. As part of the Eat Right campaign, edible oil industries took a
pledge to reduce trans fat content by 2% by 2022. Later, food
companies also took a pledge to reformulate packaged foods with
reduced levels of salt, sugar and saturated fat.
3. REPLACE, a roadmap of WHO, provides a roadmap about how
countries can remove and replace all trans fats from their food
supplies with the intention to eradicate it from the globe.
4. Since then, a lot of countries have made efforts to reduce the
levels of trans fats and in some cases, have completely banned
them.

Fixed dose combinations (FDCs)

1. Fixed dose combination drugs are two or more drugs in a single

formulation, with each drug having independent modes of action, the
combination of which are synergistic or additive or complementary in
their effect. Exploiting the liberal licensing system, bizarre FDCs tend
to find their way into the market, which has led to the Indian market
becoming the world leader of FDCs.
2. Why proliferation of FDCs
1. The individual state drug authorities in India have often
indiscriminately granted manufacturing licenses.
2. Pharma companies prefer them to circumvent the price control.
They prefer to market FDCs that are not under price control rather
than single-ingredient drugs under price control. It also simplifies
the procurement, management and handling of drugs.
3. FDCs offer a simple dosage schedule which improves patient
compliance. This is especially important in elderly patients or
patients suffering from multiple disorders.
 4. Cost is an important factor. Instead of buying two or more
separate medicines, a patient can buy just one FDC medicine to
treat multiple illness symptoms.
5. A government document had claimed that FDCs have shown to be
particularly useful in the treatment of infectious diseases like HIV,
malaria and tuberculosis, etc.
6. FDCs help in reducing the inadvertent medication errors and have
also been found to prevent or slow the advance of antimicrobial
resistance by reducing the need for mono-therapy.
3. Cons
1. Health experts have long maintained that many FDC
combinations in the market neither boast any advantage over
individual drugs nor are safe.
2. The patient may not actually need all the drugs present in the
combination.
3. Some of the drugs reportedly have dangerous side-effects.
4. Dosing is inflexible and cannot be regulated to patient’s needs as
each patient has unique characteristics such as weight, age,
pharmacogenetics, co-morbidity, which may alter drug
metabolism and effect.
5. Moreover, the existence of unlimited brands of FDCs with
different permutations and combinations leads to confusion rather
than guiding the prescribing doctor.

Nuclear energy

1. Nuclear energy has emerged as a viable source in recent

times. Important minerals used for the generation of nuclear energy are
uranium and thorium. Uranium deposits occur in the Dharwar rocks.
Geographically, uranium ores are known to occur in several locations
along the Singbhum Copper belt.
2. 3-stage nuclear process
3. Nuclear fusion
4. Advantages of Thorium reactors
1. Thorium is predicted to be able to replace uranium as nuclear fuel
in nuclear reactors, but only a few thorium reactors have yet been
completed.
2. Proliferation is not easy. Weapons-grade fissionable material (U-
233) is harder to retrieve safely from a thorium reactor.
3. Thorium reactors produce far less waste than present-day reactors.
Thorium produces 10 to 10,000 times less long-lived radioactive
waste.
4. Thorium reactors are cheaper because they have higher burn up.
5. Thorium mining produces a single pure isotope, so there is no
need for enrichment which reduces the cost.
6. Thorium cannot sustain a nuclear chain reaction without priming,
so fission stops by default in an accelerator driven reactor.
5. Nuclear deal with Japan
1. Being a non signatory to NPT, Japan had always opposed India’s
nuclear advancements. So such a deal now would signal a change
in Japan’s policy vis a vis nuclear deals and also regarding India.
2. Its significance comes from the fact that the Indo-US civil nuclear
deal is contingent on this deal as many nuclear reactors under the
Indo-US deal have to be built by the Japanese company Toshiba.
3. It will pave way for a growing India Japan relationship at many
multilateral platforms specially G4 which is vying for a
permanent seat at UNSC.
4. It will provide India with cutting edge and some critical nuclear
technology which is yet unavailable here and hence will advance
India’s nuclear capabilities to a great extent.
5. Japan’s efficient handling of the Fukushima nuclear disaster
 would come in handy for India’s similar preparation for its own
reactors.
6. Japanese equipment comes with capital investment. Japan unlike
other countries is willing to manufacture in India. With this,
nuclear trade between the two countries would increase manifold.
7. It will also pave way for other trade deals, and Japan is expected
to be one of India’s leading trading partners.
8. Advancing nuclear capabilities could fulfill India’s rapidly
increasing energy needs without producing large scale carbon
emissions. Thus we can reach our INDC goals.
6. Challenges in making world go nuclear free
1. Many countries are not willing to give up nuclear weapons to
secure their people and land. Nuclear arms race among the
countries especially between U.S, Russia, China, India, Pakistan,
North Korea seems to be increased not showing any declining
trend.
2. Double standards of western countries are also to be blamed. In
the recent Nuclear Security Summit held in Washington, US urged
other countries to give up nuclear weapons but simultaneously are
having plans to spend $1 trillion for modernisation of its nuclear
inventory in the coming three decades.
3. Discriminatory nuclear regimes such as CTBT and NPT that have
been designed to maintain status quo and keep emerging powers
deprived.
4. Discriminatory responses to nuclear proliferation by the West that
applaud Israel and punish Iran, North Korea.
5. Lack of genuine initiatives in UN that can lead to nuclear non-
proliferation. The new START between US-Russia are simply a
chimera. This in turn raises the question of genuine UN reforms.
6. More than anything else, the genuine lack of interest among
nuclear powers to give up the weapons so as to maintain the
balance of power is the biggest obstacle in achieving a nuke free
world.
7. Challenges to nuclear energy
1. According to IAEA, just three nuclear reactors started
construction world wide last year. In contrast 20 to 30 new were
being built every year in the 1960s and 1970s.
 2. The emergence of cheap shale oil and gas has made competition
in the energy sector tougher than ever. Wind and solar power
generation are also growing as viable, alternative energy sources.
3. Toshiba and Hitachi, the nuclear heavy weights, are facing huge
losses. Toshiba has filed for bankruptcy recently.
4. In the aftermath of the 2011 Fukushima nuclear disaster, the
nuclear industry is facing a global crisis and a slowdown.
5. Stricter safety regulations have spiked the costs of constructing
plants and some countries have become more cautious about new
reactors.
6. Nuclear projects are also facing problems from domestic
opposition from people residing in the area. Ex: Kudankulam
project.
8. India's nuclear doctrine

Gas hydrates

1. They are formed when a gas such as methane gets trapped in well
defined cages of water molecules forming crystalline solids. It is a solid
ice-like form of water that contains gas molecules in its molecular
cavities.
2. Natural gas hydrates occur on continental margins and shelves
worldwide from polar regions to the tropics. Gas hydrate reservoirs are
 generally associated with biologically rich cold seep ecosystems at the
seafloor. Cold seeps are locations where hydrocarbon rich fluid seeps
up from below the sea floor, often as methane or hydrogen sulphide.
3. It is estimated that total amount of carbon in the form of methane
hydrates, far exceeds the carbon content in all the fossil fuel reserves
put together and hence these are supposed to be the future potential
energy resource.
4. India has the second largest gas hydrate reserves after America. The
Krishna-Godavari (KG), Cauvery and Kerala basins alone have 100-
130 trillion cubic feet of estimated reserves.

Generic drugs
Hyperloop
3-D printing
IT in health care
[Link]
Key pointers

1. The dream of clean India can only be realized by addressing multiple

facets - maintaining a culture of swachhata at public places beyond
individual houses, cleaning water bodies, scientific waste management,
dealing with plastic menace, controlling air pollution, etc.
2. India’s economic future and prosperity is dependent on her ability to
provide affordable, reliable and sustainable energy to all her citizens.

Environment Impact assessment (EIA)

1. Environmental Impact Assessment (EIA) is a process of evaluating the

likely environmental impacts of a proposed project or development,
taking into account inter related socio-economic, cultural and human
health impacts, both beneficial and adverse.

2. Following are accessed under EIA

1. Fauna: NGT recently suspended hydro power project in Tawang,
Arunachal Pradesh due to loss to the habitat of vulnerable black
necked crane.
2. Water quality: NGT banned rat hole mining in Meghalaya.
3. Air quality: Impact of diesel vehicle in air pollution is being
studies by many bodies.
4. Protected areas: Ban on iron ore mining in Kudremukh National
Park.
5. Occupational safety: Study was conducted on health impact of
plastic PET bottles. It was found to be safe and its use was
allowed by health ministry.
6. Displacement: Displacement and migration of local people.
3. Process of EIA
4. Importance of EIA
1. It aims to predict environmental impacts at an early stage in
project planning and aims to reduce adverse impacts, and shape
projects to suit the local environment.
2. It is a multi-stakeholder approach, as it involves the Government,
local people and panchayats in studying the impact and deciding
upon the projects.
3. An expert team assessing the project helps in detailed analysis of
ecological, environmental, wildlife and social impacts.
4. It is a model for decentralised democracy and empowered
 decision making.
5. It adheres to the rio summit, 1992, and to the commitment of
sustainable development.
5. Structural issues
1. It takes place relatively late at the downstream end of the decision
making process, after major alternatives and directions have been
chosen. Rarely have projects been denied environmental
clearance.
2. NGOs and communities continue to struggle with fraudulent EIA
reports. There are lack of experts with proper knowledge of EIA
processes.

6. Procedural issues
1. Process has become too slow and is responsible for huge delays in
the projects.
2. Public participation is missing entirely or it is done towards the
end of the decision making process.
3. Conducted by non-accredited institutions.
4. Adequate information is not present to gauge the impact of the
project.
7. How strategic environment assessment (SEA) can overcome these
1. EIA takes place at end of decision making cycle, while SEA takes
place at earlier stages of decision making cycle.
2. SEA is being proactive and sustainability driven, whilst EIA is
largely reactive.
3. EIA emphasis on mitigating and minimising impacts, while SEA
emphasis on meeting environmental objectives, maintaining
natural systems.
4. SEA might be applied to an entire sector (such as a national
policy on energy) or to a geographical area, while EIA addresses a
specific project.
5. SEA does not replace or reduce the need for project level EIA, but
it can help to streamline and focus the incorporation of
 environmental concerns into the decision making process.
8. Recent Changes in EIA process (Environment supplement plan)
1. ESP will assess the cost of damages and will ask the developer to
pay for losses. This is a form of fine rather than deterrence against
environmental degradation.
2. Govt’s record of utilising the compensatory amount in forest loss
has not been satisfactory as mentioned in a report of CAG, hence
the amendment will only be an excuse for illogical and
unsustainable development.
3. Undermines decentralised decision making decreasing role of
PRIs and local indigenous people in decision making.
4. Without expert analysis, anybody can achieve green clearances by
paying a price and moving on. This can prove detrimental or even
disastrous for our environment.
5. Load of cases over NGT might increase due to increase in
conflicts over EIA and ESP.

Bio-fuel Policy 2018

1. Biofuels are combustible fuels created from biomass. They can be

produced from plants, or from agricultural wastes, domestic waste, and
industrial wastes. They are used to blend with diesel, petrol or other
fossil fuels for transport and other applications. Recently, on the World
Biofuel Day Prime Minister announced that now India will produce 450
 crore litre of ethanol in the next four years. It will result in import
savings of Rs 12,000 crore.
2. Types
1. First generation: Food crops. Sugars and vegetable oils grown on
arable land.
2. Second generation: Woody crops, agricultural residues or waste
plant material. Non-human feedstock sources include grasses,
jatropha and other seed crops, waste vegetable oil, municipal solid
waste and so forth.
3. Third generation: Fuels produced from micro-organisms like
algae.
4. Fourth generation: Genetically modified (GM) crops.
3. Why bio-fuels are important to India
1. Reduce Import Dependency: India imports 82% of its crude oil
needs. 10% ethanol blending can save lot of fuel.
2. Cleaner environment: Biofuels are eco-friendly, carbon-neutral
and can reduce vehicle emissions. They help in reduction of
GHGs at least by 3.3 kg CO2 equivalent per kg of biodiesel.
Biodiesel will also help India to meet its global climate
commitments.
3. Health benefits: Used cooking oil is a potential feedstock for
biodiesel and its use for making biodiesel will prevent diversion
of used cooking oil in the food industry.
4. MSW Management: It is estimated that annually 62 MMT of
Municipal Solid Waste gets generated in India. Bio-fules can
reduce this.
5. Vehicle performance: Biofuels increases the performance of the
engines and offer good lubricity to the vehicle. They are very safe
for storage and transport.
6. Infrastructure: At present Oil Marketing Companies are in the
process of setting up twelve 2G bio refineries with an investment
of around Rs.10,000 crore. Further addition of 2G bio refineries
across the Country will spur infrastructural investment in the rural
areas.
7. Employment: Village level entrepreneurs and supply chain
management.
8. Additional Income to Farmers: Agricultural residues can fetch a
 price for the farmer. Also, conversion of surplus grains and
agricultural biomass can help in price stabilisation.
4. National bio-fuel policy, 2018
1. The Policy categorises biofuels as "Basic Biofuels" viz. First
Generation (1G) bioethanol & biodiesel and "Advanced Biofuels"
- Second Generation (2G) ethanol, Municipal Solid Waste (MSW)
to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc., to
enable extension of appropriate financial and fiscal incentives
under each category.
2. It expands the scope of raw material for ethanol production by
allowing use of sugarcane juice, Sugar containing materials like
sugar beet, starch containing materials like Corn, Cassava, and
damaged food grains like wheat, broken rice, rotten potatoes, unfit
for human consumption for ethanol production.
3. Policy allows use of surplus food grains for production of ethanol
for blending with petrol with the approval of National Biofuel
Coordination Committee.
4. VGF scheme for 2G ethanol Bio refineries in addition to
additional tax incentives, higher purchase price as compared to 1G
biofuels.
5. The policy encourages setting up of supply chain mechanisms for
biodiesel production from non-edible oilseeds, Used Cooking Oil,
short gestation crops.
6. The biofuel policy specifically talked about banning the import
and export of bio-fuels to stimulate the domestic market and avoid
arbitrage by traders.
7. Currently, the ethanol blending percentage in petrol is around 2%
and biodiesel blending percentage in diesel is less than 0.1%. An
indicative target of 20% blending of ethanol in petrol and 5%
blending in diesel is proposed by 2030.
8. Roles and responsibilities of all the concerned
Ministries/Departments with respect to biofuels has been captured
in the Policy document to synergise efforts.

Water

1. Per capita fresh water availability in India has decreased sharply

 from 5177 [Link] in 1950s to about 1545 [Link] at present.
2. Pros of shifting water to concurrent list
1. It is argued that the move will enable long term planning on the
utilisation of water.
2. The move also finds favour in the context of international water
sharing agreements involving river water, making it a foreign
policy issue.
3. Cons
1. Items in the concurrent list can be acted upon both by the Centre
and States thus leading to multiplicity of laws.
2. Moreover such a shift in the case of water would lead to similar
demands, say, in the case of land. It can create a ripple effect in
centre-state relations.
3. Moreover good governance calls for decentralisation, because of
the variety of local problems and solutions. This is more so in the
case of water.
4. The Constitution gives a direct responsibility to the states and
through parts IX and IXA enjoins upon them to proceed with a
further set of devolutions to local bodies. Thus this goes against
constitution ideals.
5. The National Water Resources Council already exists and its
composition is such that it can be a powerful mechanism for
centre-state coordination and policy formulation in all water
related issues.
6. So, there is no need to shift the water to concurrent list. The
constitutional provisions as they stand are sufficient to address the
issues of water use and management.
4. Government initiatives for water
5. National water policy, 2012
1. It has suggested private participation in development and
distribution of water resources and pricing of water for ensuring
sustainable use.
2. Setting water allocation priorities in the following order: Drinking
water, Irrigation, Hydropower, Navigation and Industrial and
other uses.
3. Community based water management should be institutionalized
and strengthened. Water Users Associations should be
empowered. Community based management of aquifers in areas
of declining ground water levels.
4. Water Regulatory Authority should be set up to fix water tariffs
with provision of differential pricing. The rates should be
rationalised with due regard to the interests of small and marginal
farmers.
5. Envisages to establish a standardised national information system
with a network of data banks and data bases.
6. Integrated water resource planning considering local, regional,
State and national context. Integrated Water Resources
Management taking river basin as an unit.
7. All water resources projects, including hydro power projects,
 should be planned to the extent feasible as multi-purpose projects.
8. A portion of river flows should be kept aside to meet ecological
needs.
6. National Framework water bill, 2016
1. It defines water as the fundamental right of life of each human
being and shall not be denied to anyone.
2. It also states that ownership of land doesn’t extend to ground
water which is a community owned product.
3. Water for drinking purposes would take precedence over all other
uses, including agricultural, industrial and commercial.
4. The law wants to introduce graded pricing system for domestic
water supply based on income of the individuals.
5. Stringent rules on how corporations and large entities can extract
ground water. Denial of water supply services beyond a threshold,
penalties are mentioned to discourage profligate use.
6. A binding national water footprint standards for every activity.
Industries have to state their water footprint in their annual
reports.
7. There will be an incentive for those who cultivate less water
intensive crops.
8. An Integrated river basin development and management plan is
needed for rejuvenation of river systems by ensuring Aviral Dhara
(continuous flow), Nirmal Dhara (unpolluted flow) and Swachh
Kinara (clean and aesthetic river banks).
9. Integrated river basin development and management means the
process of formulating and implementing a course of action
involving natural, agricultural, and human resources of a river
basin therewith taking into account the social, economic and
institutional factors operating in a river basin to achieve specific
objectives.
7. Way forward
8. Recommendations of shah committee
1. The CWC is in charge of surface water and creating storage
structures such as dams and medium scale reservoirs. The Central
Ground Water Board (CGWB) is has objective of managing
groundwater resources. The Shah committee was set up last year
to recommend ways to restructure the CWC and the Central
Ground Water Board (CGWB).
2. A National Water Commission needs to be created by merging
both CWC and CGWB.
3. The new commision must encourage a shift in focus from the
construction of dams to decentralised management and
maintenance of water.
4. It should have full time commissioners representing Hydrology
(CWC), Hydrogeology (CGWB), etc.
5. The new body to serve as a world class capacity building, data
and knowledge institution.
9. Need for national water commission
1. Management of water is highly segregated and agencies like CWC
and CGWB work without any coordination. So, a holistic
approach to water management can only be possible with a
national water commission.
2. It brings together connoisseur from various fields like engineers,
hydrologists, economists, ecology, industry, agriculture etc which
will broaden the perspective and aid in efficient planning.
3. It intends to follow a participatory approach which will ensure
 centre-state cooperation.
4. It will shift the focus from constructing large irrigation projects to
making water available to the farmers which is the real need.
5. It will place more emphasis on judicious use and conservation of
ground water which till now took a back seat. River rejuvenation
plans of all rivers will become an integral part. Maintaining
minimum ecological flow, recharge of aquifers and halt at river
pollution will be included as the functions of the commission.
10. Against national water commission
1. CWC Civil engineers and hydrologists are against the Shah
committee’s recommendations. Their main argument being that
water is a state subject and such reforms from centre go against
the spirit of cooperative federalism.
2. According to the engineers, India can meet its food and water
security requirements only through the development of surface
water through the construction of dams. The argument engineers
cite is, China with a population of 1.4 billion has created live
storage capacity of 718 bcm, while India has a live storage
capacity of 259 bcm for its population of 1.3 billion. We need to
build more storage capacity for sustainability.
11. Benefits of PPP in water delivery
1. The ULBs lack enough financial resources. Large investments are
needed to develop and upgrade water supply, treatment and
distribution networks in India. The PPP model can bring much
needed investment.
2. As water will be priced, it will lead to optimal usage of water and
thereby increasing efficiency in distribution.
3. It is an alternative to mis-management and corruption of public
sector. Nagpur city is a successful model in private water
governance.
4. The private sector participation will bring needed professionalism
in service delivery. It will improve the quality of service provided
to people.
12. Challenges of PPP in water delivery
1. The water is a social good and right to water has been recognised
as a fundamental right and therefore government cant abdicate its
responsibility.
 2. Privatisation may limit public accountability. Multinational water
corporations are primarily accountable to their stockholders, not to
the people they serve.
3. Empirical evidences suggest that there is no significant
differences in efficiency between public and private water
provision.
4. Water supply requires huge amount of capital investment in piped
networks, pumping stations and water treatment works. At
present, the balance sheets of corporate and banks are over
stretched for this investment.
5. Failed model of PPP delivery in Johannesburg.
13. Need for water pricing
1. Irrigation being one of the key inputs for food production with
agricultural sector being a major consumer of water, pricing of
this input is one of the basic steps and an integral component in
the process of rationalising the totality of the price structure and
raising the efficiency of water use.
2. Inefficient agricultural usage of water and exports of water-
intensive crops make India a large virtual exporter of water.
Especially not when the domestic scarcity of water has not been
priced into the exports.
3. There is no regulation of groundwater extraction and no
coordination among competing uses. Inadequate and sub-optimal
pricing of power and water has promoted misuse of ground water.
4. Inter State Water Disputes (ISWD) which has the potential to
damage Indian federal structure in the present and future are
keeping on increasing and water pricing mechanism is essential to
avoid such water conflicts and promote water security.
14. Challenges in water pricing
1. Chronic poverty which would mean that a large part of the
population would be unable to pay for the usage of water.
2. Prices would cultivate a political vote bank and subject to
populism like Minimum Support Price (MSP).
3. Difficulty in covering the whole of the population under pricing
net and many households directly draw from captive bore wells,
aquifers, rivers or lakes on which pricing becomes untenable.
4. PPP model for water supply failed in many cities. Pricing regime
 may encourage water mafia, private tankers, etc., and so a large
institutional capacity has to be created for monitoring, regulating
and inspecting any ill practices like cartelisation.
5. Corruption and leakages in the system of pricing is an inherent
danger.
6. Lastly, lack of political will to implement a plan that would cause
outrage in the country’s public.
15. Water diplomacy
1. In the conduct of water diplomacy the Centre, unlike conduct of
foreign or defence policy is concerned with a material resource
which flows through State territories and which in normal times is
utilized for various purposes by the people resident in the State.
2. When floods occur, devastation is caused to life and property and
States become directly concerned with relief, rehabilitation and
reconstruction. Thus States involvement in the context of such
treaties and agreements and in their subsequent implementation is
vital.
16. Water users Association
1. A welcome development has been the emphasis on people
oriented water management. This includes Water Users
Associations (WUAs) to be formed and controlled by users of
water who pay for the services offered by the Associations. They
are not meant to be commercial organisations but need to be self
sustaining.
2. WUAs regulate and monitor water distribution amongst members,
collect service charges and carry out maintenance and repairs of
canal systems and settle disputes amongst members. So far nearly
56000 WUAs have been formed to manage 13 million hectares.
3. Criticism of WUAs is that the WUAs are gender discriminatory
and not representative of the entire community. Although women
have played a crucial role in household water management and
participate in all agricultural activity they have very little say in
the WUAs which are male dominated.
4. Their relationship with PRIs is not clear. They exist along side,
and their powers overlap with those of the PRIs. The constitution
of WUAs would make the issue of management of water
resources still more complicated.
Ground water

1. India is a groundwater economy. India uses 25% of

all groundwater extracted globally, ahead of the US and China. At
independence, the share of groundwater in agriculture was 35%; today
it is a startling 70%. In the wake of over exploitation, Central Ground
Water Authority has notified revised guidelines for ground water
extraction. The guidelines were revised in the wake of the directions
issued by the National Green Tribunal (NGT) to address various
shortcomings in the existing guidelines of ground water extraction.
2. Guidelines
1. One of the important features of the revised guidelines is the
introduction of the concept of Water Conservation Fee (WCF).
The WCF payable varies with the category of the area, type of
industry and the quantum of ground water extraction. Through
this design, the high rates of WCF are expected to discourage
setting up of new industries in over-exploited and critical areas as
well as act as a deterrent to large scale ground water extraction by
industries, especially in over-exploited and critical areas.
2. Encourages use of recycled and treated sewage water by
industries.
3. Provision of action against polluting industries.
4. Mandatory requirement of digital flow meters, piezometers and
digital water level recorders.
5. Mandatory water audit for industries abstracting ground water 500
cu.m/day or more in safe and semi-critical.
6. Mandatory roof top rain water harvesting except for specified
industries.
3. Exemptions
1. Agricultural users.
2. Users employing non-energised means to extract water.
3. Individual households (using less than 1 inch diameter delivery
pipe).
4. Armed Forces establishments during operational deployment or
during mobilization in forward locations.
5. Strategic and operational infrastructure projects for Armed
 Forces.
4. Water crisis in India
1. According to a recent NITI Aayog report, 21 Indian cities will run
out of groundwater by 2020 if usage continues at the current rate.
2. Indian cities need a urban water planning and management board,
a permanent body similar to urban development authorities, that
regulate the supply, demand and maintenance of water services
and structures. On the supply side, this authority should monitor
and regulate groundwater.
3. Rain water harvesting (RWH) must be made mandatory for newly
built houses. Monthly penalties must be levied if the directives are
not adhered to.
4. Water supply by private tankers must also be regulated with
pricing for their services having reached exorbitant levels.
5. Additional desalination plants should also be commissioned as
this water can result in water prices reaching to below 6 paise a
litre. Desalinated water is less expensive than water supplied by
private tankers.
6. Beds of existing lakes can be deepened for greater water storage
and better water percolation.
7. Metro Water and groundwater use should be measured and priced
progressively, similar to the electricity tariff, where the quantity of
use determines the price. The board can practise differential
pricing and cross-subsidise those households with a lower per
capita income.
8. We must drive awareness among the people by learning from the
experiences of other cities across the world such as Cape Town
where water saving is being driven through the concepts such as
Day Zero, thus prompting better and more efficient use of water.

Water pollution

1. According to NITI's composite water management report, 600 million

people in India face high to extreme water stress and about 2 lakh
people die every year due to inadequate access to safe water. 70% of
our fresh water is contaminated. India is currently ranked 120 among
 122 countries in the water quality.
2. Issues with waste water treatment
1. Problem of making available adequate land and project sites for
sewerage facilities.
2. Only around 31% of wastewater generated is treated and that too
with huge inter-city variations.
3. Technological backwardness of the waste treatment plants. This
leads to low treatment quality. Use of treated water limited to
some low end purposes gardening, etc.
4. Non-competitive pricing leads to poor appeal and incentive to
industries.
5. Distribution network is weak and waste-water do not get
transported to the site.
6. The existing water governance framework faces lack of
coordination and clarity. For example, Mihir Shah Committee
2016 identified that India’s existing water-governance system as
silo-based which views ground water, river basin rejuvenation and
other such challenges as isolated tasks.
3. Measures to reduce wastewater
1. At the national and regional levels, water pollution prevention
policies should be integrated into non-water policies that have
implications on water quality such as agriculture and land use
management, trade, industry, energy, and urban development.
2. Water pollution should be made a punishable offence. The
effectiveness and power of the polluter pay principle (PPP) should
be considered.
3. Participatory consultation between government, industry and the
public. At the local level, capacity building enables the
community to make decisions through Water Users Associations
(WUA), Participatory Irrigation Management (PIM), etc.
4. Strict regulation on the industries to install purification techniques
before releasing waste water into environment.
5. Market-based strategies such as environmental taxes, pollution
levies and tradable permit systems should be implemented, and
can be used to fight against or abate water pollution. Incentive
mechanisms such as subsidies, soft loans, tax relaxation should be
included in installing pollution management devices.
 4. Government efforts to promote water conservation
1. The National Water Policy (2012) was formulated which
advocates conservation, promotion and protection of water and
highlights the need for augmenting the availability of water
through rain water harvesting, direct use of rainfall and other
management measures.
2. Building pools, dug wells using MGNREGA. This was also
announced in this year’s budget speech.
3. Watershed development in specific areas. World bank sponsored
project Neeranchal was launched for this.
4. Rainwater harvesting through awareness, education, tax
incentives, easy infrastructure availability. CGWB has been
organising mass awareness programmes in the country to promote
rain water harvesting and artificial recharge to ground water.
5. National Hydrology project (NHP) for aquifer mapping of water
resources along with flood control.
6. Promoting rational use of ground water, changes in cropping
patterns, rationalisation of electrical subsidy, agro-forestry, micro-
irrigation practices etc.

SBA

1. Nearly 2 lakh children under five die every year from diarrhoea
diseases caused by unsafe water and poor sanitation, according to the
charity WaterAid. Swachh Bharat has fallen short of many objectives.
1. Success
1. Cleanliness centres: Adarsh railway station, Adarsh police
station and maintenance of cleanliness by them is setting a leading
example for others to follow.
2. Behavioural change: Here the role of celebrities was influential
and also the TV shows played crucial role in the drive.
 3. Implementation: Self-assessment portals has been provided to
encourage large scale citizen participation and create awareness
towards making towns and cities a better place to live in with
Swachh Survekshan abhiyan policy with surveys of the work.
4. Waste management: It being an important criteria, strong focus
is being paid on door-to-door collection, recycling of solid wastes,
waste to energy generation, developing compost from city waste.
It is being reported that 48% of door to door waste collection has
been achieved.
5. Recognition: Giving awards for best schools, colleges, society
and state is being instrumental in bringing the necessary change
and achieving targets of the mission.
2. Shortcomings
1. Four major challenges
1. Scale
2. Speed
3. Stigma: It is associated with the caste hierarchies in pit
emptying and manual scavenging is still persistent and rural
Indians do not want to use the kinds of latrines that require
periodic manual pit emptying, as being promoted now.
4. Sustainability: Having to make the recently changed
behaviour stick.
2. Mindset: People are resistant to change their old mindset of
defecating in the open. There is also lack of awareness among
people regarding the ill effects of open defecation. Less than 1%
of the total expenditure goes in information, education and
communication which targets the behavioural aspect of
individuals.
3. Funds: Although Govt has imposed a 2% cess, but their huge
shortage of funds. Lack of timely allocations has also hurt the
progress.
4. Dysfunctional toilets: ODF has been successful in constructing
the toilets in villages but failed in providing the necessary water
amenities.
5. Convergence: There is lack of convergence among schemes like
PRASAD, smart cities, AMRUT, etc. Thus, there is no clear
division of work, authorities, finances, etc., causing lot of
 confusion and delay in implementation.
6. Municipality: Municipal corporation lacks physical and financial
capacity to implement SBM in the backdrop of increasing cities.
Waste to energy projects are not impressive and also being
opposed by people for using outdated technology. Lack of proper
and accurate data without which assessment of progress cannot be
done.
3. Solutions
1. Awareness campaigns should be done across all villages. Benefits
regarding the toilets should be communicated to the villagers.
Help of NGOs and student bodies can be taken in this regard.
2. There are many ministries involved such as MoUD, MoRD,
MDWS. A nodal agency should be empowered to work across
ministries so that projects are not held back because of jurisdiction
issues.
3. Making toilet mandatory for approvals of water connection,
electricity, LPG connection, contesting in local elections, etc.
4. There must be a inter-utilisation of funds between different
schemes which are closely related. For example, Swachh Bharat
and Smart cities.
5. There must be a periodic oversight by the local officials on the
constructed toilets. A carrot and stick approach can be taken here
by penalising the not used ones and incentivising the users.
6. Scope of Swachh Bharat Mission may be expanded to cover
initiatives for landfills, plastic waste and municipal waste and
generating wealth from waste.
4. Swachhagrahi
1. A swachhagrahi is a volunteer who can come from any
background, including a local ASHA worker, ANM, anganwadi
worker, etc. Swachhagrahis are the foot soldiers of the Swachh
Bharat Mission. Over the last four years, a cadre of 500,000
swachhagrahis has been created who have triggered lakhs of
villages to become ODF.
2. Beyond the obvious, there are several things swachhagrahis do –
geo-tagging toilets, verifying household behaviour, converting old
toilets and retro-fitting them, engaging in other forms of
cleanliness.
Manual Scavenging
Air pollution

1. A report from the Lancet estimated that two lives in India are lost every
minute due to ambient air pollution. India is facing some 1.1 million
early deaths from air pollution. India and State Global Air Report 2017
highlights that the underlying reason for increasing pollution in India
can be attributed to its growth, which is happening in terms of
industries and its consumption of coal as the main source of energy.
2. Causes of air pollution

3.
4. Impact of Air pollution
5. Major strategies of Government for combating air pollution
1. Setting up of monitoring network for assessment of ambient air
quality, like launching of National Air Quality Index.

2. Clean Air India Initiative to curb air pollution in Indian cities by

promoting partnerships between Indian start-ups and
Dutch companies. Under it, an ‘INDUS impact’ project aims to
halt the hazardous burning of paddy stubble by promoting
business partnerships that “up cycle” it.
3. Recently, Centre has notified dust mitigation norms under the
Environment (Protection) Act, 1986 to arrest dust pollution. It
empowers CPCB to fine companies and agencies for not
complying with norms.
4. Introduction of alternate fuels like gaseous fuel (CNG, LPG etc.),
 ethanol blending. Govt has launched PMUY to provide free LPG
connection to BPL households.
5. Ban on polluting fuel like Petcoke usage in around NCR.
6. Leapfrogging from BS-IV to BS-VI fuel standards by 1st April,
2020.
7. Supreme Court ban on firecracker usage.
8. Focus on short-lived climate pollutants (SLCP). SLCP include a
variety of gases that have short-term warming effects often in
excess of CO2, but don’t stay in the atmosphere as long. These
include methane, HFCs, black carbon (soot), tropospheric ozone
etc. It has been estimated that SLCP mitigation has the potential to
avoid up to 0.6°C of warming by mid-century
9. Comprehensive amendments to various Waste Management Rules
and notification of construction and demolition waste
management rules.
10. Promotion of public transport, e-rickshaws, promotion of
car pooling, pollution under control certificate, etc.
11. Recently, National Environmental and Engineering Research
Institute (Neeri) and CSIR has developed ‘Neerdhur’, a novel
multi-fuel domestic cooking stove.
6. Government measures taken for improving Indoor Air Quality
1. National Programme for Improved Chulhas.
2. National Biomass Cookstoves Initiative.
3. Pradhan Mantri Ujjwala Yojana (PMUY).
4. Neerdhur a novel multi-fuel domestic cooking stove, that uses
from wood and other fuel like coal, cow dung and agricultural
residue. It also saves 50% fuel and has high thermal efficiency.
5. Green roofs, that are planted with vegetation, may improve the
indoor air quality of commercial buildings.
7. Reasons for air pollution in Delhi
1. In winter 2017, PM2.5 concentrations in New Delhi reached more
than 1,200 micrograms per cubic meter, 48 times the guideline
value established by the World Health Organization (WHO).
2. During winter season in Delhi, there are two winds — one
carrying pollutants from stubble burning in Punjab and the other
bringing in moisture from Uttar Pradesh — that collide and get
locked, which leads to the formation of smog. Approximately 35
 million tonnes of crop stubble are burnt by the farmers in these
states, which is increasing on year basis.
3. Large scale construction activities in Delhi-NCR are major source
of dust particle in air.
4. Delhi-NCR came under a thick blanket of dust due to dust storms
from Rajasthan which is facing extremely dry weather conditions,
with high temperatures and wind speeds.
5. In Delhi, the ground-level ozone and PM 2.5 play the most
significant role in formation of smog. They are mostly due to
vehicular emissions.
8. Comprehensive action plan to tackle air pollution in Delhi
1. MoEFCC prepared an action plan to tackle air pollution
emergencies in the capital. It categorises four levels of air
pollution based on atmospheric particulate matter (PM 2.5 and
PM 10) levels.
2. Based on the air quality the grades have been classified as
emergency, severe, very poor and moderate poor. It will be
enforced by Environment Pollution Control Authority (EPCA).
Emergency measures will be automatically enforced if level are
breached for two consecutive days.
3. The plan recommends measures like odd-even car rationing
scheme and ban on construction activities to combat air pollution.
During very poor air quality, it recommends banning diesel
generators and parking fee increased by three to four times.
4. It also lists a number of other measures such as closing brick
kilns, stone crushers, hot mix plants and intensifying public
transport services and increasing the frequency of mechanised
cleaning and sprinkling of water on roads.
9. Suggestions to reduce stubble burning
1. Most of the biomass is burned during the winter when the demand
for fodder is rising and thus the surplus material could be
efficiently utilized.
2. Power production and bio-gas production from biomass should be
scaled up by increasing investment.
3. Conservation agriculture needs to be popularised which would
encourage farmers to use newer low-till seeding technologies
allowing much of the crop residues to remain on site.
 4. MS Swaminathan has suggested commercialising the paddy straw
for making animal feed, cardboard, paper, etc. Thus, if financial
incentives are given to the farmers, they would not resort to
burning them.
5. Penalising farmers will not help because it is difficult to identify
them. Moreover, the farmer is burning it out of compulsion. The
government should also procure pulses and oil seeds which are
suitable for north India. This will change the cropping pattern.
10. Causes of noise pollution
1. Industrialization: Most of the industries use big machines which
are capable of producing large amount of noise.
2. Urban planning: Congested houses, large families sharing small
space, lack of tree cover leads to noise pollution which may
disrupt the environment of society.
3. Social events: Noise is at its peak in most of the social events.
Whether it is marriage, parties, place of worship, people normally
flout rules set by the local administration and create nuisance in
the area.
4. Transportation: Presence of large number of vehicles on roads,
aeroplanes flying over houses, underground trains produce heavy
noise.
5. Construction activities: Activities like mining, construction of
bridges, dams, buildings, stations, roads, flyovers are too noisy.
11. Steps taken by Government
1. The Govt has enacted Noise Pollution Amendment Rules, 2010 to
control noise pollution due to loud-speakers and public address
system.
2. Ambient standards in respect of noise for different categories of
areas (residential, commercial, industrial) and silence zones have
been notified under the EPA, 1986.
3. Noise limits have been prescribed for automobiles, domestic
appliances and construction equipment at the manufacturing
stage. Standards have been evolved and notified for the generator
sets, fire crackers and coal mines.
4. Regulatory agencies have been directed to enforce the standards
for control and regulate noise pollution.
5. The National Green Highway Mission will also help in reducing
 noise pollution around highways.

BS norms

1. Bharat Stage (BS) norms are the emission standards instituted by the
Government to regulate the emissions of air pollutants such as nitrogen
oxides (NOX), carbon monoxide (CO), hydrocarbons (HC), PM and
sulphur oxides (SO2) from internal combustion engines.
2. Evolution
1. The BS norms, based on Euro norms, were first introduced in
2000 whereby passenger cars and the commercial vehicles met
Euro-I equivalent norms.
2. Four wheeled vehicles moved to BS-III emission norms in 13
metro cities from 2005 and rest of the country moved to BS-II
norms.
3. BS-IV for 13 Metro cities was implemented from 2010 onwards
and the rest of the country moved to Bharat Stage III. BS-IV
norms were extended to rest of the country from 2017 onwards.
4. In 2016, the Indian government announced that the country would
skip the BS-V norms altogether and adopt BS-VI norms by 2020.
3. Significance of BS-VI
1. Reducing reduce sulphur content to 10 ppm sulphur from 50 ppm
in BS IV fuels.
2. Bringing PM2.5, PM10 in diesel cars down by 80% compared to
BS IV.
4. Challenges
1. Automakers: Dual challenge of clearing out BS IV inventory
soon and building up sufficient BS VI inventory for sales
purposes. Compliance with BS-VI norms will require higher
investment in technology to upgrade vehicles.
2. Buyers: BS-VI-compliant vehicles will be more expensive which
may affect demand in the Indian auto industry.
3. Administrative issue: There is a lack of coordination between the
Petroleum and Natural Gas Ministry and the Ministry of Road
Transport and Highways regarding the enforcement time of new
norms.
4. Other challenges: Huge investment is required for upgrading
 refineries to implement the clean fuel technology.
5. However, these challenges appear miniscule given the huge
environmental and economic costs caused due to high vehicular air
pollution. Implementation of BS VI norms is also in line with India’s
commitments towards the Paris Climate Agreement.

National Clean Air Programme (NCAP)

1. The National Clean Air Programme (NCAP) is a pollution control

initiative that was launched by the MoEF with the intention to cut the
concentration of PM10 and PM2.5 by at least 20% in the next five
years, with 2017 as the base year for comparison.
2. Following reports by WHO and the air quality data obtained, 102 cities
from 23 States and UTs have been chosen as non-attainment cities.
With the exception of Delhi, Mumbai, Kolkata and Bengaluru, most of
those chosen are tier two cities.
3. Key strategies under NCAP
1. NCAP proposes a tentative national target of 20%-30% reduction
in PM2.5 and PM10 concentrations by 2024, with 2017 as the
base year for comparison.
2. It notes that internationally, actions have been city-specific rather
than country-oriented, and cites examples such as Beijing and
Seoul that saw 35%-40% PM2.5 reduction in five years. NCAP
calls for a city action plan.
3. NCAP talks of a coordination between central ministries, state
governments, and local bodies.
4. Identified as major pollutants are vehicles, industries, rampant
construction, biomass burning, diesel gensets, and commercial
and domestic use of fuel, among other things.
5. It calls for an extensive plantation drive at pollution hotspots and
execution. However, it is not made clear how much air pollution
this will seek to reduce.

Fly Ash

1. It is a fine powder, which is the by-product of burning coal in thermal

 power plants. Composition of Fly ash includes substantial amounts of
oxides of silica, aluminium and calcium. Element like Arsenic, Boron,
Chromium, lead etc. are also found in trace concentrations.
2. Advantages of Fly Ash
1. It is a proven resource material for many applications of
construction industries and currently is being utilized in
manufacturing of portland cement, bricks/blocks/tiles
manufacturing, road embankment construction and low-lying area
development, etc.
2. It can be advantageously used in agriculture as an agent for acidic
soils, as soil conditioner — improving upon water holding
capacity, etc.
3. India is still not able to match the potential of its fly Ash use. As per
Ministry of Power, only 63% of fly ash generated is being utilized.
4. Following steps have been taken to utilise its potential
1. 2009 notification of MoEF provided guidelines on ash utilization
advocating its usage within 100 km radius of thermal power
plants.
2. New and innovative uses are also taking place, especially initiated
by power companies like NTPC in collaboration with Institutes
like IIT-Delhi and IIT-Kanpur e.g. Manufacture of pre-stressed
railway concrete sleepers.
3. Maharashtra became the first state in the country to adopt the Fly
Ash Utilization Policy and has decided to come up with an export
policy for fly ash in the light of demand from places like
Singapore and Dubai.

Land degradation Neutrality (LDN)

1. LDN is a state whereby the amount and quality of land resources,

necessary to support ecosystem functions and services and enhance
food security, remains stable or increases within specified temporal and
spatial scales. It is a unique approach that counterbalances the expected
loss of productive land with the recovery of degraded areas.
2. The overarching principle for LDN includes Avoid, Reduce
and Reverse. India has adopted the goal of achieving LDN by 2030 as
adopted under SDG. As per a study by TERI, Land degradation cost
 India about 2.54 per cent of its GDP.
3. Steps taken to reduce LDN
1. Achieving land degradation neutrality (LDN) by 2030 is one of
the targets within Sustainable Development Goals (SDG) adopted
in 2015.
2. Under LDN Target Setting Programme, UNCCD is supporting
interested countries in the national land degradation neutrality
(LDN) target setting process
3. Creation of an LDN fund to invest in bankable projects on land
rehabilitation and sustainable land management.
4. UNCCD releases the Global Land Outlook (GLO) which
demonstrates the central importance of land quality to human
wellbeing.
5. The Land for Life Programme was launched at UNCCD
Conference of the Parties (COP).
6. In India, National Action Plan (NAP) to combat desertification
was launched in 2001 for 20 years.
7. Desertification and Land Degradation Atlas (2016) of entire
country was prepared by ISRO using Indian remote sensing
satellites.
8. Schemes like Integrated Watershed Development Program, Per
Drop More Crop, National Afforestation Program, National Green
Mission, etc. have components to tackle Land degradation.
4. To reduce land degradation, the increasing pressures on land resources
should also be reduced. Producers, consumers, governments and
corporations should follow some measures to stabilize and reduce
pressure on land resources.

Plastic waste

1. India won global acclaim for its “Beat Plastic Pollution” resolve
declared on World Environment Day last year, under which it pledged
to eliminate single-use plastic by 2022. So far, 22 States and Union
Territories have joined the fight, announcing a ban on single-use
plastics. Single-use plastics are used only once before they are thrown
away or recycled. These items are things like plastic bags, straws,
coffee stirrers, soda and water bottles and most food packaging.
2. Plastic use
1. Plastic finds extensive use in manufacturing, packaging
industry, automotive, pharmaceutical, health care and construction
sectors. But it is the fast moving consumer goods sector that uses
large volumes of packaging, posing a higher order challenge.
3. Impact of plastic Pollution
1. Soil Pollution and air pollution: Toxic chemicals leach out of
plastic into the landfill site. It leads to decreasing
crop productivity, impacting food security, etc. Indiscriminate
burning of waste in open-air pits releases harmful gases like furan
and dioxin.
2. Poisoning Ocean: Plastics threaten vulnerable marine life like
corals. The total economic damage to the world’s marine
ecosystem caused by plastic amounts to at least $13 billion every
year.
3. Health Impact: Plastic bags often provide breeding grounds for
mosquitoes and pests thus increase the transmission of vector-
borne diseases like malaria.
4. Bioaccumulation: Plastic bags are often ingested by animals who
mistakenly taken them for food due to which toxic chemicals
entered the human food chain.
5. Natural Disaster: Encroachment and clogging of city drainage
with plastic and solid waste often leads to suburban flooding.
6. Social Cost: The social damage continuously being inflicted is
inestimable as every sphere of life get affected by it like tourism,
recreation, business, the health of humans, animals, fish and birds.
4. Concerns in plastic waste management
1. Waste plastic from packaging of everything from food, cosmetics
and groceries to goods delivered by online platforms remains
unaddressed.
2. State and local governments are unwilling to upgrade their waste
management systems, which is necessary to even measure the true
scale of packaging waste.
3. Waste management is the last in the list of priorities of municipal
corporations. Many States/UTs have not constituted State Level
Monitoring Committee (SLMC) Body to monitor implementation
 of PWM Rules.
4. Lack of expertise among the state pollution control boards and the
dearth of understanding of the scale of the plastic waste
challenge.
5. Presence of a communication gap between the state and central
government officials.
6. Poor response of producers for EPR norms. They are supposed to
submit their plans to states, which has been founding lacking till
now.
7. Lack of accurate data. Only 14 of India’s 35 state pollution control
boards filed information on plastic waste generation in 2017-18,
as per CPCB. The states have been unable to gather real-time data
on its generation.
8. Large-scale presence of informal sector. Over 90 percent of the
plastic industry is informal, thus trying to reach and work with
these manufacturers becomes a challenge. It is further
compounded due to presence of illegal units.
5. Plastic Waste Management Rules, 2016
1. Increase minimum thickness of plastic carry bags from 40 to 50
microns.
2. Expand the jurisdiction of applicability from the municipal area to
rural areas, because plastic has reached rural areas also.
3. To bring in the responsibilities of producers and generators to
introduce collect back system of plastic waste. First time, the
producers and brand owners have been made responsible for
collecting waste generated from their products.
4. To introduce collection of plastic waste management fee through
pre-registration of the producers, importers of plastic carry bags.
5. To promote use of plastic waste for road construction.
6. In the absence of a suitable alternative, it is impractical and
undesirable to impose a blanket ban on the use of plastic all over
the country. The real challenge is to improve plastic waste
management systems.
6. Steps to beat plastic pollution
1. Governments must start charging the producers for their waste,
and collect it diligently, which will lead to recovery and
recycling.
 2. Citizens need to be aware of these rules, governments need to
work with citizens to collect fines and companies need to be held
accountable in terms of their environmental and social
responsibilities.
3. India generates an estimated 16 lakh tonnes of plastic waste
annually. If sold at the global average rate of 50 cents a kg, it can
generate a revenue of Rs.5,600 crore a year.
4. Improve waste collecting and sorting. Waste must first be
segregated at source. This segregated waste should be then
transported and treated separately. If plastic waste is mixed with
organic and sanitary matter, its recyclability drastically reduces
and its value lost.
5. Make plastic products easier to recycle. Re-designing and
innovation is the key. Scale up the adoption of re-usable plastic.
6. Establish a global plastics protocol.

Extended producer responsibility (EPR)

1. Producers have the greatest control over product design and marketing.
So, an effective way of waste management is to encourage producers to
design environmentally friendly products and collect them at the end of
their life cycle for effective disposal. This is the idea behind the policy
of extended producer responsibility (EPR).
2. The E-Waste (Management and Handling) Rules, 2011 introduced the
concept of EPR for the first time in India which state that the
companies have to meet the collection target in a phased manner, which
shall be 30% of the estimated quantity of waste generation during first
two year of implementation of Rules. The EPR policy also finds place
in Plastic Waste Management Rules, 2016 as well as the Solid Waste
Management Rules, 2016.
3. Three liabilities under EPR
1. Economic responsibility: Producer will cover all or part of the
expenses from collection, recycling and final disposal of products.
2. Physical responsibility.
3. Informative responsibility: Supply information on the
environmental properties of the products to the public.
4. Challenges in EPR Compliance in India
 1. EPR lacks the mechanism to verify the claims of companies.
2. Illegal market and unknown producers in India make it difficult to
identify all the producers
3. The waste management rules primarily focus upon the formal
sectors of recycling even though most of the recycling is handled
by informal sector (90% of waste is handled by informal sector).
Also, it does not even provide incentives for the informal
recyclers either to sell to the formal recyclers or to formalise.
4. The dearth of proper recycling infrastructure in the country also
makes it difficult to observe the take-back scheme.
5. Considering the low scale of operational and locational aspects (of
producers and users), it may not be economically viable and
physically feasible for each and every producer to establish an e-
waste recycling unit.

Sand mining

1. Sand Mining is an activity referring to the process of removal of sand

from the foreshore including rivers, streams and lakes.
2. Ecological impact
1. It may change river bed gradient which may affect the riparian
habitat including the vegetative covers.
2. Sand on river bed act as filter and its mining may lead to
infiltration of polluted and salt water to ground water.
3. It also reduces water holding capacity, thus reducing ground water
levels.
4. It increase risks from pests.
5. Vehicle movement increased in the area leading to local
environmental problems.
3. Economic impact
1. Proliferations of illegal sand mining causing huge loss to
exchequer.
2. It may affect the stability of hydraulic structure which may have
huge economic implications.
3. It may affect local population as local riparian ecosystem get
disturbed leading to destruction of their livelihood.
 4. It may also lead to increased flooding and river bed shifting thus
imparting huge loss to standing crops and populations.
5. Shrinking river bed has led to expansion of population near to
streams which can be catastrophic as seen in Uttarakhand floods.
4. As sand is a minor mineral, it is the state Government which has higher
responsibility for protection of river beds.

Open cast mining

1. Open cast mining, or surface mining, is a type of mining in which

mining is done over surface. It is still in practice because it reduces the
cost significantly. It is adopted in all developing and developed nations
but it has serious impact on environment and hydrological bodies.
2. Negative impact
1. Surface water gets polluted and water bodies like lake, rivers,
local ponds, all get silted with minerals of open cast through wind
or water erosion. For example, water bodies in Kudremukh iron
mines impact on river tributaries.
2. Ground water pollution because of leaching and percolation of
harmful minerals. Coal mining in Jharia mines has caused ground
water pollution.
3. Silting in river beds and in river basin area which pollutes water,
local ecosystem, wetland bodies supported by river and so adverse
impact on flora and fauna.
4. Forest and vegetation gets hurt because mining provokes
deforestation lose of vegetation. Ex: Bauxite mining in
Sambalpur, Odisha.
5. Air pollution as macro and micro mineral particles mix in
atmosphere through wind erosion.
6. Land degradation because of it and it becomes prone for
desertification. Ex: In Meghalaya where large land area not
cultivable after open mining. Agriculture practices largely get
affected as in Goa, after intensive iron mining rice crop cultivation
has reduced.

Mine deaths
 1. Data tabled in the Lok Sabha revealed that India records 377 mine
deaths in 3 years.
2. Reasons
1. Leaks of poisonous gases such as hydrogen sulphide, explosive
natural gases like methane or dust explosions.
2. Collapsing of mine rooms.
3. Mining-induced seismicity.
4. Flooding. Ex: Meghalaya rat hole mining case.
5. General mechanical errors from improperly used or
malfunctioning mining equipment (electrical equipment). Use of
improper explosives underground can also cause methane and coal
dust explosions.

Management of forests by tribals

1. Management of forests and rights of forest dwellers has been a

contentious issue since independence. Whether the state or the
indigenous population should be given the right to manage the forest is
a difficult case to evaluate. Both sides seem to have a reasonable
ground to claim.
2. Arguments for Tribals
1. They are indigenous people and have organic knowledge of the
forests which have been passed on from generations. Scale of
exploitation of the forest are kept under sustainable levels.
2. Before FRA and PESA, trade in such produce were done through
contractors, traders etc, and the benefits hardly trickled down to
the indigenous population.
3. Control over forest resources forms an important part of
livelihood of these people. Since the British times, their rights
over forest produce has been denied to them. Nehru in his policy
of tribal Panchsheel talked about giving control over forest and
mineral rights to these people to ensure their development.
4. In an era of decentralisation, it is difficult to make an argument
against Gram Sabha control over the forest produce particularly in
schedule 5 and schedule 6 areas.
5. Depriving the tribals of their rights causes dissatisfaction which
often expresses itself in the form of extremist forces such as
 present day naxalism or the santhal rebellion in the British era.
6. SC in Samata and Vedanta judgement has upheld the rights of
Adivasis over forest and mineral produce and their consent in
exploitation of such resources is mandatory.
3. Arguments in favour of the state
1. Erstwhile Planning Commission in a report pegged the value of
forest produce trade at 50,000 cr. This provides the scope for
revenue augmentation of state which can be used for social
expenditure.
2. Indian forest produce includes many plants with medicinal
benefits which can be utilized for AYUSH etc.
3. The indigenous populations may not always have the technical
know how to protect animal resources.
4. The Government also needs to keep track of negative forces such
as naxalism, etc., who use forests as their hiding ground.
4. In short, the state and the forest dwellers need to work in consonance.
The concept of the interference by the state should not be totally
discarded but kept at minimal levels. In all such cases where the state
feels an intervention is required, it should consult the concerned
ministry and avoid taking any arbitrary steps.

Challenges faced by protected areas

1. India has around 5% of its geographical area as protected area. Yet

wildlife sanctuaries and national parks faces conservation challenges.
2. Reasons
1. Fragmentation and loss of habitat has put at risk various species of
birds and animals. Ex: NH-7 slices crucial corridor forests
between Pench and Kanha tiger reserves in MP.
2. Poaching is very prevalent in many protected areas due to poor
surveillance. Ex: Poaching of Rhino in Kaziranga and Manas
national park.
3. Invasive species can run amok in an ecosystem and send a park’s
native residents toward extinction. Eg: Mimosa invisa in
Kaziranga etc.
4. Mining and quarrying are causing degradation of habitat in areas
like the Aravali Range and the Western Ghats. Forest is
 disappearing in Kudremukh National Park due to mining activity.
5. Some protected areas are facing extreme water crisis due to which
migratory bird have stop coming. Ex: Keoladeo. Kaziranga is
threatened by flood in by Brahmaputra though partially because of
deforestation.
6. Lack of enforcement of speed limits results in road kills. Chinnar
Wildlife Sanctuary is facing severe problem of animal fatalities.
3. Following steps can be taken
1. Valuable natural ecosystems should not be unnecessarily
disrupted by linear project intrusions. Alternative alignments,
routed around wildlife corridors, can provide or enhance
connectivity to peripheral villages and towns.
2. Overpasses, culverts, and underpasses to facilitate animal
crossings, while speed and traffic regulation can reduce animal-
vehicle collisions.
3. Surveillance and special protection squads to counter poaching
and enforcing speed limit.
4. Involving the local population in conservation. Eg: Maldharis
living in the vicinity of the Gir National Park helped in
conservation of Lion population.
5. Strict implementation of forest and wildlife protection acts and
international conventions like CITES and bonn convention.
4. Human-Tiger Conflict
1. We have lost two of our national animals to targeted killings in
two rich landscapes — Yavatmal (Maharashtra) and Dudhwa
(Uttar Pradesh). The big cats were victims of human-tiger
interface conflict.
2. India is in a leadership position on the tiger front with almost 70
percent of the global tiger population. We pioneered tiger
conservation with Project Tiger and by conserving 2.4 percent of
our geographical area as tiger reserves.
5. Steps to reduce Man-animal conflicts
1. Deploying animal early warning systems provide timely public
information to public on presence and movements of wild animals
to facilitate precautionary measures.
2. Overpasses, culverts and underpasses to facilitate animal
crossings, while speed and traffic regulation can reduce animal
 vehicle collisions.
3. Faster identification and implementation of Eco-sensitive zones
which act as buffer zones aimed at reducing conflict.
4. Housing improvements and provision of amenities like lighting,
indoor toilets, rural public bus service to reduce accidental human
deaths. Supporting local communities to install and maintain bio
and power fencing around vulnerable areas.
5. Partnering with WWF which provide tailor made solutions to man
wildlife conflict with community and species in consideration.
Encourage community led conservation in Keibul Lamjao
National Park, Kaziranga national park, Sundarbans etc.
6. Relocation of animal habitats away from residential and
commercial centers will serve to minimise animal-man conflict
for illegal and self interested motives.

Paris agreement

1. COP 21 recognises the need to limit increase in temperature from pre-

industrial levels to well-below 20C and binds all nations towards their
respective Intended Nationally Determined Contributions (INDCs) to
meet this target through various commitments upto 2030. The
agreement will go into effect from 2020.
2. Pros of the agreement
1. For the first time all the countries, both developed and developing,
accepted to limit their emissions to nationally set targets.
Collective effort by all nations rather than a few countries is
always better and will probably lead to lesser temperature rise.
2. Mitigation efforts will be based on capability and national
circumstances.
3. Adaptation and loss and damage clauses have been retained to
strengthen ability of countries to deal with climate change.
4. It incorporates elements like national circumstances and does not
specify peaking years for developing countries, which retains
CBDR principles in some form.
5. Institutional framework to raise at least $100 billion per year by
2020 has been setup, to help developing nations in both mitigation
and adaptation activities. Other nations are encouraged to provide
 funding voluntarily.
6. It has proposed a method of evaluation of promised targets by
countries. This will act as enough deterrent for not reaching
targets. Countries need to submit enhanced climate plans every 5
years.
7. Phase out pollution from fossil fuels and phase in clean energy
technologies. In 2nd half of the century, move towards net carbon
reduction through sinks.
8. Incorporates voluntary cooperation between countries (solar
alliance), and use both public and private finances, market and
non-market mechanisms to meet the objective.
3. Shortcoming
1. There is still lack of clarity on some contentious issues such as
absence of effective legal mechanisms to enforce commitments,
technology and fund transfers to shift to green economy and
utilisation of remaining carbon space.
2. The treaty requires ratification by 55 parties. USA has already
withdrawn from the agreement.
3. Moreover, the agreement while recognising urgent need of action
by all countries seems to have diluted the principle of historic
responsibility.
4. Since the commitments are self determined, there is no pressure
on large past and current emitters to cut them down
proportionately.
4. Issues in climate financing in India
1. The present system is mostly based on credit from different
financial institutions. However, due to high and variable interest
rates and short tenor of debt, the cost of renewable energy
increases by about 25-30% than similar projects in US.
2. Majority of investment is focused on large scale or grid scale
projects. Smaller projects like off-grid, rooftop, decentralized
projects etc., get ignored in the process.
3. Increased preference for solar energy is crowding out other
innovating though riskier models like small hydro, biomass-to-
energy projects.
4. Focus is on renewable energy based electricity. Other applications
like heating, cooling and productive and mechanical power
 receives less attention.
5. General issues like uncertainty about revenue flows, projects
delays, technology and project efficiency concerns etc.
5. Steps needed
1. New policies and clarification from the state government on the
solar sector on solar park allocation etc. This would bring more
confidence from potential investors.
2. Financial institutions must come up with innovative financial
products for green finance. Ex: Green bonds, dollar denominated
PPA.
3. Small projects like roof-top panels must be aggregated to create
investible portfolios.
4. Need to find a balance between rural and urban projects. The
latter receive more private investment due to better commercial
opportunities.
5. International institutions like World Bank must increase their
contribution towards renewable energy. Today WB gives 5% to
renewable. India demands this to be increased to at least 15%.
6. Challenges India need to face in implementing the deal
1. A bold new policy on urban design to curb emissions from
buildings and transport has to be written into all relevant
legislation.
2. In order to comply with the Paris process, every aspect of energy
use would need precise measurement in the years ahead, which
several sectors of the economy are ill-equipped to do at present.
3. On technology transfer, there is already an offensive by the US
corporate sector to ensure that in the post-Paris negotiations there
is no concession on intellectual property (IP) issues.
4. On finance, there has been backsliding. In Paris, it was agreed that
no increase will be expected over $100 billion figure until 2025,
five years into the implementation of the agreement.
5. With the concept of carbon budget out of the way, it is current
emissions alone which will become the focus in the new climate
change regime and create inevitable pressures on India for
enhanced mitigation pledges.
6. Lifting millions out of poverty by ensuring economic growth and
adequate opportunities. It will require meeting housing,
 transportation needs all of which heavily rely on conquest of
nature. Thus, we require a new development paradigm.
7. Effective coordination between States and Centre needed to effect
far reaching changes like energy efficient urbanisation, curb
vehicular emission, deforestation, etc. Until, now States have not
played much of a role in climate change consultations.
8. Integration of renewable technologies into the current system like
integrating solar power into electricity grid would require trained
manpower. Further wide spread adoption of solar powered
vehicles, solar power generation technologies would require
people with the expertise to ensure smooth transition and quality
of service.
7. Kigali amendment
1. As per the agreement, countries are expected to reduce the
manufacture and use of HFCs by roughly 80-85% from their
respective baselines, till 2045. It would prevent the emission of
HFCs equivalent to 70 billion tons of CO2.
2. It is legally binding. Periodic review will be under taken by
committee for energy efficiency and safety.
3. It also has a provision for a multilateral fund for developing
countries for adaptation and mitigation.
4. It strengthens Paris agreement which sets an ambitious target of
restricting the rise in global temperature below 2 celsius, as
compared to pre-industrial level.
5. Unlike Paris agreement, it gives clear, concrete and mandatory
targets with fixed timelines to the signatory parties to achieve
their targets.
6. Kigali agreement is a very significant step and has got support
from most of the countries due to its grouping and time levels.
The replacement technology is already available known as Hydro
fluoro olefin (HFO), so the shift may not be so difficult to achieve
in decades.
8. Climate change is the greatest threat to humanity. Urgent and
coordinated actions need to be taken by global community to mitigate
and adapt to climate change.
IPCC Report
INDCs proposed by India

1. INDC goals
1. To reduce the emissions intensity of its GDP by 33 to 35 percent
by 2030, from 2005 levels.
 2. To create an additional carbon sink of 2.5 to 3 billion tonnes of
CO2 equivalent through additional forest and tree cover by 2030.
3. Increase the share of renewable based electricity to 40% of total
energy usage.
4. To better adapt to climate changes by increasing investments in
vulnerable sectors like agriculture, Himalayas etc.
5. Increase mobilisation of funds and development and transfer of
technology.
2. Achievements
1. Many policy measures have been taken to promote low carbon
strategies and renewable energy have resulted in the decline of
emission intensity of our GDP by 12% between 2005 and 2010.
2. Recently, the government passed the landmark CAMPA bill,
which looks to make up for every inch of forest destroyed.
3. India has promised to develop climate resilient urban centres.
Along with missions like the development of smart cities and
AMRUT, there are waste management programmes to be put in
place as well.
4. Projects like metro rails and initiatives like the use of CNG
powered and electric public transport vehicles in many cities,
India is doing the right thing.
5. India is running one of the largest renewable capacity expansion
programmes in the world. Between 2002 and 2015, the share of
renewable grid capacity has increased over 6 times from 32 GW
to 175 GW.
6. India is one of the few countries where forest and tree cover has
increased in recent years and the total forest and tree cover
amounts to 24% percent of the geographical area of the country.
3. Various concerns over INDCs target
1. Our various centrally sponsored schemes (CSS) have failed to
show results, rather shown negative results, despite investing
crores and these are what we bank upon for achieving our targets.
The afforested areas have low survival rates.
2. Zeal of afforestation has marginalised and displaced adivasis and
local tribes. The dependence of local communities must be
preserved and their expertise must be utilised. Ex: Forest Rights
Act (FRA).
 3. Afforestation drives have lead to invasion by non-native species.
4. Private sector participation in afforestation has historically
degraded and disrupted our indigenous forests. But we are still
banking on it.
5. They put conservation of other equally important biomes like
desert, grasslands, wetlands etc., in the backseat.
6. Our targets for afforestation are divorced from the other sectoral
programs. When plans are made for diverting forest land for dams,
nuclear plant, etc. whole picture must be considered.
7. High cost of renewable energy acts as a challenge.
8. Environmentalists have expressed concern over the continued
dependence on coal fired plants for fuelling the nation’s
development.
9. India’s tardy rate of growth in the nuclear sector so far, with only
5.8 GW of current capacity, as well as issues with the liability
law, procurement of technology and long construction times
doesn’t encourage India to depend on nuclear power even though
it’s carbon free.
4. Steps taken to achieve INDC
1. A scheme for development of 25 Solar Parks, Ultra Mega Solar
Power Projects, canal top solar projects and one hundred thousand
solar pumps for farmers is at different stages of implementation.
2. The energy efficiency of thermal power plants will be
systematically and mandatorily improved.
3. The switch from BS IV to BS VI to improve fuel standards across
the country is also planned for the near future.
4. The Urban transport policy will encourage moving people rather
than vehicles with a major focus on Mass Rapid Transit Systems.
5. Government of India’s long term goal is to increase its forest
cover through a planned afforestation drive through initiatives like
Green India Mission, green highways policy, financial incentive
for forests, plantation along rivers, REDD Plus and Compensatory
Afforestation Fund Management and Planning Authority.
6. India will have 40 percent of the total installed power capacity in
2030 based on non-fossil fuel based sources.
Electric vehicles

1. In India, transport sector is the second largest contributor to CO2

emissions after the industrial sector. Road transport accounts for around
90% of the total emissions in the transport sector in India. Therefore, it
is imperative that there be a shift of focus to alternative fuels to support
our mobility in a sustainable manner. Indian market share of electric
cars is a meagre 0.06% when compared to 2% in China and 39%
in Norway.
2. Prospects of EVs in India
1. Demand for automobiles would only increase in India as its
economy grows.
2. The climate commitments.
3. Increasing awareness of the consumers on environmental aspects.
4. It also provides an opportunity to grow India as a manufacturing
hub for EVs (Detroit of EVs), provided policies are supportive.
3. Steps taken by Government to promote Electric vehicles (EV)
1. FAME is a part of National Electric Mobility Mission Plan. It
focuses on four areas like a) technology development b) demand
creation c) pilot projects d) charging infrastructure. Centre has
announced an Outlay of Rs. 10000 crore for FAME -2 to boost the
number of electric vehicles in the country.
2. Government also reduced GST for e-Vehicles from 12% to 5%.
3. Government has announced income tax rebates of up to Rs. 1.5
lakh for customers on interest paid on loans to buy EVs.
4. Energy Efficiency Services Ltd (EESL) has setup charging
stations in NDMC area.
5. To promote electric two wheelers, the eligibility to ride them was
made lenient. Individuals from 16 years of age can ride such
Gearless e-scooters and bikes legally.
6. Ministry of Power issued a policy and clarified that
charging infrastructure will be a service rather than the sale of
electricity. Ministry of Housing and Urban Affairs gave guidelines
to provide for electric vehicle charging stations in private and
commercial buildings.
7. ISRO has commercialised indigenously developed lithium-ion
battery technology has selected 14 companies for transfer of
 technology.
8. The NITI Aayog has taken an initiative to provide a Model
Concessionaire Agreement (MCA) document for introducing
electric bus fleet in cities for public transportation on PPP mode
on Operational Expenditure (per km basis) Model rather than
paying upfront capital cost.
9. The Government has notified that the registration plate for battery
operated vehicles is to be white-in-green number plate.
4. Challenges with EVs
1. Charging infrastructure: Limited driving range of batteries in
the EVs, means that charging infrastructure should have very
heavy presence.
2. Charging time: Even fast chargers can take around half an hour
to charge an electric car while slow chargers could take even 8
hours. It is, therefore, an important policy issue to come up with
universal charging standards for the country as a whole.
3. Information: Information dissemination on Charging
infrastructure and public chargers to the users of EVs through
online maps and other means such as physical signage.
4. Battery Technology: Since the battery is the heart of any EV,
development of appropriate battery technologies that can function
efficiently in the high temperature conditions in India need to be
given utmost importance.
5. India’s economic future and prosperity is dependent on her ability to
provide affordable, reliable and sustainable energy to all her citizens.

Steps taken to promote renewable energy

1. Around 27 GW renewable power capacity is under installation and over

38 GW under bidding.
2. Union Budget 2018-19 announced zero import duty on components
used in making solar panels to give a boost to domestic solar panel
manufacturers.
3. Green Energy Corridor Project continues to facilitate smooth
integration of increasing share of renewables into the national grid.
Eleven Renewable Energy Management Centres are already at different
stages of installation.
 4. Kisan Urja Suraksha Evam Utthaan Mahabhiyan (KUSUM) scheme has
been launched for providing financial and water security to farmers and
for de-dieselization of the farm sector. The scheme envisages around
2.75 million solar pumps and, on a pilot basis, 1 GW decentralized solar
power plants in uncultivable lands of farmers to enhance income of
farmers.

Solar energy

1. India expanded its solar generation capacity eight times from 2.65 GW
in 2014 to 28.18 GW in 2019. According to the Ministry of New and
Renewable Energy (2018), India has an annual solar cell manufacturing
capacity of about 3 GW while the average annual demand is 20 GW.
The shortfall is met by imports of solar panels. Solar panel imports,
mostly from China, accounted for 90% of 2017 sales, up from 86% in
2014.
2. Supply chain: The supply chain of solar photovoltaic panel
manufacturing is as follows, silicon production from silicates (sand);
production of solar grade silicon ingots; solar wafer manufacturing; and
PV module assembly.
3. Challenges: No manufacturing facilities of silicon wafers and heavy
reliance on imports, huge cost of capital (15% as compared to china
5%), competition from china, huge cost of land acquisition.
4. India needs a solar manufacturing strategy, perhaps like the Automotive
Mission Plan (2006-2016), which is credited with making India one of
the largest manufacturers of two-wheelers, three-wheelers, four-
wheelers and lorries in the world.

Wind energy

1. Considered much cheaper than solar, wind energy is globally emerging

as a favourite option. Wind power development, which started in India
in the 1990s, has significantly increased in the last few years. India
plans to add 60 GW of wind power installed capacity by the year 2022.
2. According National Institute of Wind Energy (NIWE), domestic policy
support for wind power has enabled India to become the fourth largest
in the world with an installed capacity of over 34 GW as of 2018,
 despite being a new comer to this Industry.
3. Policy support for wind energy
1. The National Wind-Solar Hybrid Policy was issued in May 2018
with an objective to provide a framework for promotion of large
grid connected wind-solar PV hybrid system for optimal and
efficient utilization. The wind-solar PV hybrid systems will help
in reducing the variability in renewable power generation and
achieving better grid stability.
2. The National Offshore wind energy policy was notified in October
2015 with an objective to develop the offshore wind energy in the
Indian Exclusive Economic Zone (EEZ) along the Indian
coastline.
3. For precise wind quality measurements one LiDAR was
commissioned at Gulf of Khambat.
4. Waiver of Inter-State Transmission Charges and losses for wind
power.
5. Supporting research and development on various aspects of
renewable energy including with industry participation.

Blue economy

1. The term ‘blue economy’ implies sustainable use of ocean resources for
economic growth, improved livelihoods and jobs, and ocean ecosystem
health. It comprises of various verticals like aquaculture, maritime
tourism, blue-biotechnology, ocean energy, marine mining, offshore oil
and gas etc.
2. Role of blue economy
1. The Indian Ocean Region is abundant with resources such as
minerals such as poly-metallic nodules. India has started deep
ocean mission to extract poly-metallic nodules in IOR basin.
2. Oceans provide 30 percent of oil and gas resources.
3. Fisheries sustain the livelihoods of more than 38 million people
worldwide.
4. More than 95% of India’s trade is being carried on by sea.
5. Protection of coastal communities from disasters like floods and
storms.
6. Mangroves and other vegetated ocean habitats sequester 25
percent of the extra CO2 from fossil fuels, i.e., Blue Carbon.
7. Renewable/sustainable marine energy and climate change risk
mitigation can be a vital role in socio-economic development.
8. Ocean and coastal tourism can bring jobs and economic growth.
3. Challenges
1. Unsustainable development near marine areas: Destruction of
marine and coastal habitats due to coastal development,
deforestation, mining, etc.
2. Impacts of climate change.
3. Geopolitical issues: Geopolitical tussle between in various
regions like South China Sea (SCS), Indian Ocean Region (IOR)
etc. and undermining International Laws like UNCLOS limits.
 4. Unfair trade practices: Many times fishing agreements allow
access to an EEZ of country to foreign operators.
5. Other non-conventional threats: Defence and security related
threats like piracy and terrorism combined with natural disasters.
4. Steps taken
1. The Sagarmala project is the strategic initiative for port-led
development by tackling the issue of underutilized ports. 14 CEZs
are being developed under Sagarmala initiative covering all the
Maritime States.
2. India in recent times has shifted its focus towards Indian Ocean
resource exploration. E.g. India has started its exploration of
75000 sq. km of Indian ocean seabed and is developing
technologies.
3. Proactive participation of India in the sustainable blue economy
conference in Nairobi.
4. SAGAR initiative (Security and Growth for All in the Region). It
is a maritime initiative which gives priority to Indian Ocean
region for ensuring peace, stability and prosperity of India and
other countries in Indian Ocean region.
5. India is cooperating with Indian Ocean littoral countries and
projecting itself as ‘net security provider’ to ensure a safe, secure
and stable Indian Ocean Region (IOR). India is also cooperating
with extra regional powers like US, Japan in IOR. Ex: Asia-Africa
growth corridor, QUAD etc.
5. The development of blue economy can serve as a growth catalyst in
realizing the vision to become a $5 trillion economy by 2025. India
endorses the growth of the blue economy in a sustainable, inclusive and
people centred manner

Coastal areas

1. CRZ, 1991 notification defined the Coastal Regulation Zone or CRZ as

coastal land up to 500m from the High Tide Line (HTL) and a range of
100m along banks of creeks, estuaries, backwaters and rivers subject to
tidal fluctuations.
Conclusion: India need to move from a purely regulatory approach towards
an Integrated Coastal Zone Management (ICZM).

Bio-diversity change

1. Direct Drivers: The five direct drivers of change are (1) changes in
land and sea use; (2) direct exploitation of organisms; (3) climate
change; (4) pollution and (5) invasive alien species.
2. Key indirect drivers include increased population and per capita
consumption; technological innovation, which in some cases has
lowered and in other cases increased the damage to nature; and,
critically, issues of governance and accountability.

Peatlands

1. Peats are a heterogeneous mixture of plant material (vascular plants,

mosses and humus) that had accumulated in a water-saturated area and
are only partially decomposed due to absence of oxygen. The natural
areas covered by peat are called peatlands. Various types of peat are
swamp forests, fens, bogs or mires.
 2. They are mostly found in permafrost regions towards the poles and at
high altitudes, in coastal areas, beneath tropical rainforest and in boreal
forests. Countries with largest peatland areas are – Russia, Canada,
Indonesia, USA, Finland etc.
3. Brazzaville Declaration and Global Peatlands Initiative (GPI).
4. Importance of Peatland: Carbon Storage, supporting water
cycle, supporting unique and critically threatened
biodiversity, supporting livelihood (source of berries, mushrooms and
medicinal plants), cultural landscape and tourism hotspots.

Tiger conservation

1. There are around 2,967 tigers in the wild in India according to Tiger
census. With this, India has achieved the target set in 2010 St
Petersburg Declaration of doubling tiger population by 2022. India
estimates that over 75 percent of the world’s tiger population now
resides in the country. But According to the National Tiger
Conservation Authority (NTCA), India saw 92 tiger deaths in 2018,
with Madhya Pradesh topping the list at 23, and Maharashtra ranking
second. Wildlife officials used mobile application M-
STrIPES (Monitoring System For Tigers-Intensive Protection and
Ecological Status) to estimate the big cat population.
2. Reasons for India's success
1. Constitution of NTCA under WPA, 1972. Project Tiger.
2. Wildlife Crime Control Bureau (WCCB).
3. Implementation of tiger landscape conservation plans
and identification of important habitat corridors. India’s five tiger
landscapes are Shivalik Hills and Gangetic Plains, Central Indian
Landscape and Eastern Ghats, Western Ghats, North-East Hills
and Brahmaputra plains, and the Sundarbans.
4. Designation and creation of inviolate critical core and buffer areas
for tiger reserves. There are now 50 tiger reserves across the
country.
5. The Global Tiger Forum (GTF) is the only inter-governmental
international body established with members from willing
countries to embark on a global campaign to protect the Tiger.
6. Increased vigilance and conservation efforts by the Forest
 Department. Organised poaching rackets have been all but
crushed.
3. Reasons for tiger deaths
1. In most of the states, the specific reason behind a majority of tiger
deaths could not be ascertained. Veterinarians are unable to
diagnose the cause of death if the carcass is decomposed. Timely
detection of carcass is necessary.
2. Tigers have lost more than 93% of their historical range,
according to WWF, due to habitat degradation. As forest covers
across the globe continue to shrink, humans and tigers have been
left to compete for space to survive.
3. Linear infrastructure development has emerged as the single
largest threat to the demographic viability of tigers, as per a study
published in February by non-profit Wildlife Conservation Trust.
4. More tigers equals more opportunity for conflict with people. Add
to that increasing human populations in India and it is no surprise
that human-tiger conflict (HTC) will increase.
4. Why Tiger conservation is required
1. Tigers are definitely indicators of the amount of protection
(wildlife areas) and the health of the primary ecosystem. They
also have an umbrella effect in terms of conservation.
2. By conserving tigers, we will end up conserving species that need
areas which are similar to what tigers need. So a lot of species
benefit, indirectly, from tiger conservation.
5. Way forward
1. There must be an increased focus on managing HTC (Human-
Tiger conflict). Tiger-proof livestock enclosures and livelihoods
programmes that reduce human and livestock dependency on
forests where tigers occur.
2. Intensify and involve everyone from conservationists and forest
departments to citizens and the media.
3. We need to ensure that a proper zonation is done where
development and wildlife conservation have boundaries.
4. A big threat that looms over conservation activities is wildlife
trade.
6. While there is much to celebrate, this moment of India’s success in tiger
conservation should not result in complacency.
[Link] management
National Disaster Management Plan

1. India is in list of nations that follow Sendai framework 2015 and have
own disaster management plan. It was much awaited for India to have
own disaster plan in the wake of climate change and other man made
disasters like recent in Kerala temple festival.
2. Main salient features are
1. Planning: It has plans for short, medium and long run
respectively 5, 10, and 15 years to deal with disasters.
2. Role clarity: 15 different disasters have been identified and
different ministers are entrusted for management. For instance for
cyclone, Minister for earth science will be responsible. Beside
union it offers role for state, districts, and panchayats also.
3. Redefining disaster: It also identifies major activities such as
early warning, information dissemination, medical care, fuel,
transportation, search and rescue, evacuation, etc. to serve as a
checklist for agencies responding to a disaster.
4. Human disasters: Human induced disasters like chemical,
biological, radioactivity, and nuclear also covered under it.
5. Animals: Besides human it focused on livestock and animals also.
6. Media role: It calls for ethical guidelines for the media for
coverage of disasters as well as self-regulation. The plan wants the
media to respect the dignity and privacy of affected people. Also,
in a move aimed to stop rumours and spread of panic, the plan
directed the authorities to schedule regular media briefing.
7. Awareness: To prepare communities to cope with disasters, it
emphasises on a greater need for information, education and
communication activities.
8. International practise: Technical upgradation and adopting best
international practice is part of it.
3. It will help as
1. Clarity of role for different stakeholders delivered by it which is
very important at the time of crisis. Chaos can be largely avoided
by ensuring single line of command.
2. It identifies major aspects such as early warning, information
dissemination, medical care, fuel, transportation, search and
 rescue and evacuation. This acts as a checklist of activities for
agencies during the time of disaster.
3. A regional approach has been mentioned, by clearly spelling out
the roles and responsibilities of the local bodies. Local level
planning would move the whole thing from one size fits all
approach.
4. Greater emphasis on IEC activities, which empowers and enables
people to effectively cope with disasters.
5. A model for Asian countries for upcoming ministerial event on
disaster management in India.
4. Missing points
1. Unlike Sendai Framework it does not set any goals or targets or a
definite time frame.
2. Further, a framework for funding is missing.
3. Role of corporate bodies need to be institutionalised, which was
not done.
4. Inclusion of innovative methodologies with a judicious mix of
new technology with traditional practices.
5. Need to give space to disaster insurance provisions.

Sendai framework
1. The Sendai Framework is a 15 year (2015-30), voluntary, non-binding
agreement which recognises that the State has the primary role to reduce
disaster risk but that responsibility should be shared with other stakeholders
including local government, private sector and the other stakeholders.
2. Four priorities
1. Understanding disaster risk in all its dimensions (vulnerability,
capacity, knowledge, etc).
2. Strengthening disaster risk governance to manage disaster risk at
national, regional and global level.
3. Investing in disaster risk reduction for resilience.
4. Enhancing disaster preparedness for effective response and to build
back better in recovery, rehabilitation and reconstruction.
3. Positives
1. It involves adopting integrated and inclusive institutional measures
so as to work towards preventing vulnerability to disaster, increase
preparedness for response and recovery and strengthen resilience.
 2. Enhanced work to reduce exposure and vulnerability, thus
preventing the creation of new disaster risks.
3. Sendai disaster risk targets contribute to achieving sustainable
development goals (SDGs).
4. International, regional and sub-regional cooperation inculcated.
5. Broader and a more people centered preventive approach to disaster
risk reduction.
6. Involvement of private sector.
4. Limitations
1. Voluntary commitments.
2. No specific targets.
3. Low financing commitments from the rich nations threaten to
undercut the international community’s anti poverty agenda. Poor countries
face increased levels of hidden costs and challenges to meet their obligations.
4. It does not discuss the disasters caused by ways of energy
production.
5. It does not discuss the vulnerability of disaster refugees.

Crowd disasters
[Link]
Border areas

1. India has 15000 km of international border. Proper management of border is extremely

important for our national security. In Indian case, borders are quite complex and almost
every type of extreme geography is present at different borders viz. deserts, fertile lands,
swampy marshes or tropical evergreen jungles. There is cross border smuggling, problem
of drugs, cattle, humans, artefacts, fake Indian currency note (FICN), etc.
2. India-Bangladesh border
1. India shares around 4100 km of its land border with Bangladesh. The entire stretch
consists of plain, riverine, hilly and with hardly any natural obstacles. Instead of
natural barriers, border meanders through villages, agricultural lands, etc. Un-
demarcated stretches and adverse possessions had been causing constant friction
between the border guarding forces of India and Bangladesh.
2. Illegal immigration: Poor development, religious persecution, environmental
concerns etc., pushed Bangladeshis into India, while India’s huge economy and
accommodative society pulled immigrants. Communal violence in Assam has direct
link with this immigration.
3. Cattle and other smuggling: Cattle from UP, Bihar is taken to borders for grazing
and then smuggled to Bangladesh. This way government is losing revenue of around
10000 crore annually. Along with cattle, smuggling of arms, diesel, human and
narcotics trafficking, counterfeit Indian currency are quite rampant along the India-
Bangladesh border.
4. Bases of Anti India elements: Presently, the United Liberation Front of Assam
(ULFA) and the National Democratic Front of Bodoland (NDFB) as well as several
other insurgent outfits from the Northeast have bases in Bangladesh.
5. Fencing: Fencing and floodlighting are important constituents of maintaining
vigilance along the borders. Government has undertaken the work of construction of
fencing, floodlighting and roads along these borders.
6. Integrated check posts: There are several designated entry and exit points on the
international borders of the country through which cross border movement of
persons, goods and traffic takes place. Conventional infrastructure for discharge of
various sovereign functions at these points is neither adequate nor coordinated
between various Government agencies.
3. India-Pakistan border
1. This is spread across extreme climatic conditions given that the boundary runs from
the hot Thar Desert in Rajasthan to the cold Himalayas in Jammu and Kashmir.
2. The India-Pakistan boundary is categorised under three different heads. The first is
the international boundary also known as the Radcliffe line. It is around 2000 km
long and stretches from Gujarat to parts of Jammu district in Jammu and Kashmir.
The second is the line of control (LoC), or the ceasefire line, which came into
existence after the 1948 and 1971 wars. This line runs from Jammu to Leh district.
And the third is the actual ground position line (AGPL) that divides current positions
of Indian and Pakistani troops in the Siachen Glacier region.
3. Border dispute at Sir Creek and Kashmir.
 4. River water sharing issue at Indus river.
5. Infiltration and cross-border terrorism targeted to destabilise India.
6. Diverse terrain including desert, marshes, snow capped mountain and plains makes
border guarding difficult.
7. Time and cost overruns in infrastructure projects due to unforeseen circumstances
and natural calamities.
8. Other issues include drug smuggling, fake currency, arms trafficking, etc.
4. India-China Border
1. India and China share a 3,500 km long boundary. Unfortunately, the entire boundary
is disputed. The line, which delineates the boundary between the two countries, is
popularly called the McMahon line, after its author Sir Henry McMahon.
2. Border dispute at Aksai Chin, Arunachal Pradesh, Doklam etc. with sporadic
aggression.
3. Large scale smuggling of Chinese electronic and other consumer goods.
4. Inadequate infrastructure due to difficult terrain.
5. Multiple forces along Indian border (for example, ITBP, Assam rifles, Special
frontier force) as opposed to single PLA commander on Chinese side.
6. Water sharing issue as China is building dams on its side reducing water flows on our
side.
5. Recent initiatives by Govt
1. Creation of Chief of Defence staff (CDS).
2. India is also constructing some critical bridges to cut down time for troop movement
such as Dhola-Sadiya bridge.
3. India has joined hands with Japan to aggressively develop infrastructure projects in
North east to contain China.
4. Army infrastructure projects within 100 km of LAC have been exempted from forest
clearance.
5. To expedite border road construction, Ministry of Defence has decided to delegate
administrative and financial powers to the Border Roads Organisation (BRO).
6. India-Myanmar boundary
1. After Independence, the boundary was demarcated in 1967 under an agreement
signed by both countries. There were many border agreements between India and
Myanmar, in which borders were fluctuating and this has created confusion. The
rugged terrain makes movement and the overall development of the area difficult.
2. The internal dynamics of the region in terms of the clan loyalties of the tribal people,
inter-tribal clashes, insurgency, and trans-border ethnic ties also adversely affect the
security of the border areas.
3. There is practically no physical barrier along the border. Insurgents make use Free
movement Regime (FMR) to cross-over to Myanmar and receive training and acquire
arms.
4. The location of the boundary at the edge of the golden triangle facilitates the
unrestricted illegal flows of drugs into the Indian territory.
5. It is reported that the local insurgent groups are actively involved in drugs and arms
trafficking. Work for fence erection and road building is going on, but at times it is
interrupted because of opposition.
 7. India-Nepal border
1. India and Nepal have shared an open border since 1950. The conception of such a
border can be found in the Treaty of Peace and Friendship that the two countries
signed that year. Provisions in the treaty, wherein citizens of both countries are given
equal rights in matters of residence, acquisition of property, employment and
movement in each other’s territory, provide for an open border between the two
countries.
2. Open border has been a great facilitator of strong and unique bilateral relations. At
the same time, it has given rise to many irritants and problems that raise serious
concerns. Allegations of excesses such as intimidation and forcible grabbing of land
by either side along the disputed border also surface from time to time.
3. Many terrorist organisations and Naxalites have fully exploited open borders with
Nepal.
4. Many hard core criminals pursued by Indian and Nepalese security forces escape
across the open border. These anti-national elements indulge in illegal activities, such
as smuggling of essential items and fake currency, gun running, and drugs and
human trafficking.
5. Pakistani Inter-Services Intelligence (ISI) has been using Nepalese territory to carry
out anti-India activities since the 1990s. WikiLeaks documents have revealed that the
ISI has created a number of terrorist fronts in Nepal.
8. India-Bhutan Border
1. India and Bhutan share a 669 km long boundary. The boundary is demarcated except
along the tri-junction with China. The process of demarcation of the India-Bhutan
border started in 1961 and was completed in 2006. Like with Nepal, India’s boundary
with Bhutan is also an open boundary.
2. The border was peaceful till Indian insurgent groups established camps in the
southern districts of Bhutan. This problem has been effectively dealt with during the
Bhutanese government’s Operation All Clear, which saw the destruction and
uprooting of all insurgent camps in Bhutanese territory.
9. Diversity of borders
1. Arid and desert border with Pakistan.
2. Alpine mountains with rugged features and glaciers along borders of Pakistan and
China.
3. Plains and foothills with Nepal.
4. Dense forests with Myanmar in the North-eastern region.
5. Large coastline open to international waters.
10. Problems
1. Lack of proper demarcation of our land and maritime borders.
2. Complex and different terrain on all borders makes it difficult to attain specialization
in border management.
3. Inadequate attention to security forces such as no mobile connectivity leading to
isolation, inadequate medical facilities, disparity in wages and allowances in
comparison with the army. Security forces have to face extreme conditions like
extreme heat of Thar and extreme cold of Siachin glacier.
4. Lack of coordination among multiple agencies associated with border security.
 5. Lack of infrastructure with border forces including shortage both in terms of
manpower and physical infrastructure.
6. Inadequate attention to the concerns of local people in border areas which is
exploited by hostile elements to create a feeling of ill will against the security forces
& Government.
7. Golden crescent in the west and Golden triangle in the east are responsible for Drug
trafficking.
8. Dense eastern border and border with Nepal and Bangladesh are notorious for human
trafficking and smuggling. It provides an easy escape route to Indian criminals
(Naxals) to commit a crime here and cross the border.
9. Open seas has allowed many foreign elements to come inside the Indian Territory.
Mumbai attack was an eye opener in this regard. Indian youth are misguided and are
taken across border to provide them militant training.
11. Suggestions
1. CIBMS: The Comprehensive Integrated Border Management System (CIBMS) is an
integration of a number of new gadgets and technologies to ensure electronic
surveillance of India's international borders with Pakistan and Bangladesh.
2. Dispute resolution: Government should resolve pending border disputes with the
neighbouring countries, as they later become matters of national-security threat.
3. No diversion of security forces: The border-guarding force should not be distracted
from its principal task and deployed for other internal security duties. For example,
ITBP, a force specifically trained for India-China border should not be used in the
naxalite infested areas.
4. Involvement of army: It is felt that the responsibility for unsettled and disputed
borders, such as the LoC in J&K and the LAC on the Indo-Tibetan border, should be
that of the Indian Army while the BSF should be responsible for all settled borders.
5. Developing Infrastructure: Intensifying the Border area development
program (BADP) which funds states to invest in education, job creation and
infrastructure will go a long way in managing borders. This means the border
population from illegal activities.
6. Use of advanced technology: The advances in surveillance technology, particularly
satellite and aerial imagery, can help to maintain a constant vigil along the LAC and
make it possible to reduce physical deployment.
7. Weapons: BSF and ITBP should be armed with better sophisticated weapons and
work conditions should be improved to give them confidence.
8. Border Haats: Organising border Haats to build confidence and economically
develop border areas.

Internal security challenges

1. Destabilising a country through the internal disturbances is more economical and less
objectionable, particularly when direct warfare is not an option and international borders
cannot be violated.
2. Reasons behind weak internal security
1. The nitty gritty of security management have not been given due importance by
 Indian Centre.
2. Police continue to be in a shambles. The Supreme Court gave historic directions in
2006 for police reforms, but the states have been dragging it for too long.
3. India lacks national security doctrine.
4. Weak intelligence coordination and dissemination between various agencies.
5. There is no long-term policy for Jammu and Kashmir, nor is there any strategic
vision to tackle the Maoist insurgency.
6. A federal system with multi and regional party system also throws open the
challenge of centre and state co-ordination.
3. Excessive employment of the Army is bad
1. In many troubled states, the Army has been employed in large numbers to ensure law
and order and conditions. But once committed, these forces have usually had to
remain deployed for several decades.
2. First, an over dependence on the Army reflects lack of trust and faith in the
capability of the state and central armed police and paramilitary forces.
3. Second, with the passage of time, the locals start treating the Army as just another
police force.
4. Third, such deployments and prolonged duties have an adverse impact on the Army’s
discipline, morale and operational effectiveness.
5. Fourth, during a war, the Army requires public support. It cannot afford to alienate
the local population as is currently happening in Manipur, and to some extent, in
J&K and Assam.
6. Reduction in Army deployment will be possible only if the paramilitary, central and
state police forces can be revamped. There is a need to modernise these forces,
improve their leadership, training and man management capabilities.
4. Govt initiatives
1. NATGRID: The formation of an intelligence database designed to consolidate and
make searchable data gathered by existing security and law enforcement agencies,
will prove to be a vital link in India’s intelligence infrastructure.
2. CCTNS: The Crime and Criminal Tracking Networks and System (CCTNS) is an
initiative of the MHA, to facilitate storage, transfer and sharing of data and
information between police stations.
3. CERT-In: It is responsible for protection of cyber systems and it provides specific
steps and countermeasures to patch the existing vulnerabilities and strengthen the
security of these websites.
4. SAMADHAN: On the Naxal front, the Conference of Chief Ministers of the affected
states held in Delhi came up with a new formula of SAMADHAN to tackle the
problem.
5. Measures to internal security challenges
1. Police is generally the first agency to respond to internal security challenges.
Impending police reforms (Prakash Singh judgment of SC) should be implemented to
strengthen policing.
2. The absence of a central institution to tackle terrorism has resulted in a fragmented
approach to terrorism. Therefore, a central anti-terrorism agency, NCTC, should be
established.
 3. Synergy between law enforcement, legal and judicial systems is essential. The
prosecution of the perpetrators of terrorist acts needs to be expedited.
4. Military pressure alone cannot resolve matters unless there is good governance, with
a strong thrust on socio-political and socio-economic issues.
5. Perception management has been the weakest link in India’s fighting against internal
security problems. Counter narratives to the propaganda of the terrorists and
insurgents should be developed. For example, Government is introducing courses on
scientific interpretations of religious texts in Madrassas.
6. Implementation of Make in India, National Manufacturing Policy, reviving textile
MSMEs, improving ease of doing business etc will generate much-needed jobs in
India.
7. In the Northeast, the Assam Rifles had been raised primarily for deployment in that
area and comprised personnel from that region. Its composition was eventually
changed to that of an all-India force which lead to loss of rapport.
8. Internal funding sources for terrorists, money laundering, cyber thefts should be
checked by the coordination of NIA, NATGRID and IB.
9. Terrorism has global dimension and effective cooperation should be secured with
other nations to tackle it.
10. Effective border management through ICPs, fences, regular visits of leaders in
bordering areas is needed to curb insurgency in internal pockets.
11. Implementation of National cyber security policy 2013 will reduce vulnerability of
core infrastructure and secure banking, government and military communications.
6. Considering the length of India’s borders, the border forces will always remain inadequate.
They have to be supplemented with Home and Hearth units or village guards of the kind
employed in Arunachal Pradesh. These Home and Hearth units, staffed with as many local
ex-servicemen as possible, can be raised wherever border holding forces are thin on the
ground.

Terrorism

1. Terrorism is an act of disproportionate use of violence which create fear in the society, that
ultimately helps to achieve a political, ideological or religious objective. Many nations are
affected, whether directly or indirectly. Recent attacks on Peshawar (2014), Paris (2015),
Kabul (2016) and Pathankot (2016) as well as several earlier attacks shows highly
asymmetric and unpredictable nature of terrorist attacks.
2. Key observations
1. Rise in number of active terrorists groups such as ISIS, Al-Qaeda, JeM, Hamas etc.
and each one having different agenda and role.
2. Terrorist groups have access to advanced weapons and machinery being supplied by
hidden agents.
3. Rise of terrorist groups is also influenced by world power’s tactics or strategic moves
like USA arming Islamist rebels in Syria to counter President Bashar al-Assad who is
a Russian ally.
4. There is no proactive or preventive strategy to handle such threats and most nations
become concerned once damage is done.
3. Reasons for rise in lone wolf attacks
1. In such attacks, actors allegedly act by themselves without any tactical or financial
support from an established insurgent group or international terrorist organisation.
2. It is an efficient way of spreading terror in hard to access places for terrorist groups
like the IS as lone wolves typically remain off the security radar.
3. Mostly attackers are self radicalised towards extremist ideology by accessing
material on social media.
4. The current gun sales environment in the US allows self radicalised to have licensed
weapons with the right amount of push.
4. Why air strikes are not effective
1. Instead of solving the problem it aggravates the situation. Air strikes in Syria and
Afghanistan leads to emergence of more extreme groups.
2. It takes a heavy toll on innocent civilians.
3. Not taking a UN route which further weakens the chances of negotiation and peace.
4. Air strikes is proving a boon to weapons makers and increasing their lobbying
efforts.
5. Air strikes has led to merging of two jihadist group and danger looms over Libya by
Boko Haram and ISIS.
5. Failure of Anti-terror legislation
1. Post independence, on the pretext of national security, India has experimented with
number of anti-terrorism act, right from MISA, NSA, POTA and TADA. The
predicament set by centre is being followed by states like Maharashtra and now
Gujarat. The multiplicity of laws is the first problem.
2. There is no liability on the state. Citizens who are wrongly charged under this law
cannot sue the state or demand compensation because the state is protected from all
such actions.
3. Issue with most laws has been that they are enacted as a knee jerk reaction to some
events (MISA during emergency, POTA during post parliament attack). This hurried
state of enactments results in large loopholes, curtailing fundamental rights, etc.
4. Such acts provide disproportionate power to police officials which have resulted in
arbitrary arrests, cooked up charges, long detention without trial, torture, etc.
5. They challenge cooperative federalism and focusses more on retribution than fair and
transparent investigation and ultimately their provisions are opposed and are struck
down in court of law.
6. Compulsory installation of CCTV, as in Maharashtra act, is against the individual’s
right of privacy.
6. What is needed rather than laws
1. Rather than new law, need of an hour is robust investigation system via better
training, infrastructure, application of modern technology, cutting edge forensic
department, etc.
2. Implementation of ARC recommendation of separation of investigation and law
enforcement branch.
3. Better coordination between centre and state and among states, plugging loopholes in
unlawful prevention act is needed.
4. Deeper engagement with SAARC and ASEAN for intelligence collaboration, sharing
 best practices is also need of the hour as terrorism has become an international
phenomenon.
5. So, conventional methods of warfare wont work for upcoming threats and hence a
global comprehensive strategy is the need of hour. We must focus on preventive
measure and pro-actively dismantling the threats before they occur.
7. Failure of intelligence agencies
1. Lack of expertise and infrastructure has resulted in a substandard surveillance from
across the border resulting in ever increasing terror activities.
2. Lack of coordination between Army, state police, paramilitary forces lead to
confusing outcomes. Similarly there is no coordination between defence intelligence
units like IB, NSA, NSC have been creating lacunae within.
3. Hierarchical confusions arising because of presence of PMO, NSA, Ministry of
Defence, Ministry of Home Affairs all in loop creating slip ups.
4. Inputs gathered are either too late or not unabridged enough to know the exact nature
of the activity. Ex: Mumbai attacks information.
5. Reports not tabled in Parliament and anonymity maintained as to how they function.
This leads to lack of accountability.
6. No parliamentary or public debate happens on working of these institutions which
diminishes essence of democratic debates in country.
8. State sponsored terrorism
1. State-sponsored terrorism is government support of violent non-state actors engaged
in terrorism. This support could be to achieve multiple objectives such as de-
stabilising popular government, or economic or strategic reasons.
2. Iran has long been accused of funding terrorists by the US agencies most notably
against Iraq. Israel funding groups like HAMAS and Lebanese Hizbollah. USA
supporting Al-Qaeda to keep off the Russian military is another example.
3. Pakistan intelligence agency ISI, has been found to be the planning and operating
master of many terrorist attacks in India. The long and porous borders make India
vulnerable to such acts. Pakistani army has been giving cover fire for the terrorists to
enter into India.
4. China is believed to be funding terrorist operations in North Eastern states. It is
accused of giving shelter to ULFA members of Assam separatist movement.
9. Lessons to be learned from 26/11

10. Strategies for prevention of terrorist attacks

1. UNSC can act as watchdog to keep an eye on world politics. It can warn and
condemn neo cold war practices so that super powers doesn’t play their power games
in disturbed countries like Syria, Afghanistan or recent North Korea.
2. UN can play a key role in cutting access to finance and weapons supply to terrorists.
Controlling of oil reserves which is backbone of IS for economic funding of its
military.
3. Increasing cooperation between countries which includes sharing lessons learnt,
training personnel and emulating tactics, sharing intelligence and technology
advancements.
4. Multilateral counter terrorism bodies like GCTF could play a significant role via
 talks and policy proposals. Regional groups like South Asian countries can come up
with an effective regional institution to share knowledge, resources to counter
threats.
5. Countries needs effective mechanism to monitor online activities as internet is
becoming a key communication channel for terrorist groups. Although civil liberties
should not be compromised.
6. There is political unwillingness to allow direct top to top communication between
intelligence agencies like RAW, ISI which some security experts believe, if allowed,
can be an huge step towards ensuring nation security.

Convention on international terrorism

1. The Convention on international terrorism was proposed by India in 1996. Despite the
passage of two decades, the countries are yet to come to a conclusion.
2. Need
1. CCIT provides a legal framework which makes it binding on all signatories to deny
funds and safe havens to the terrorist groups.
2. It will provide an universal definition of terrorism that all 193-members of the
UNGA will adopt into their own criminal law.
3. To ban all terror groups and shut down terror camps. To make cross-border terrorism
an extraditable offence worldwide. Without it countries are unable to develop a norm
under which terrorists shall be prosecuted or extradited.
4. Increased data sharing between foreign funding, drug and arms trade network and
foreign tourist arrival (FTA) data.
5. Islamic state is growing its influence further east despite being under siege in Iraq
and Syria. The deadly attacks in Pakistan, on a court and a Sufi shrine, and the
unearthing of an IS cell in Hyderabad in India are proof. So there is a need for the
global effort against terrorism.
3. India’s role
1. India must isolate and act against countries that serve as safe havens for terrorists.
2. India must redouble its diplomatic efforts with the UNSC, US, OIC, and the Latin
American countries who are creating major obstacles to ratify the UN
Comprehensive Convention on International Terrorism.
3. Adoption of the draft Comprehensive Convention on International Terrorism will be
an expression of India’s resolve to fight terrorism.
4. The current differences between definition of terrorism need to be resolved through a
broader framework with stress on human right violations and extra judicial killing.
4. With terrorism on a rise and even countries who have been sponsors of terror are becoming
victims of it shows the necessity and significance of CCIT and with India’s continuous
 pursuance this can be achieved.

Linkages between organised crime and terrorism

1. Terrorism and organised crimes (money laundering, drug trade, weapons trade, human
trafficking, fake currency) are conjoint twins that pose a great threat to the world through
their syndicate and their deadly effects.
2. Similarities
1. Both use extreme violence and the threat of reprisals. The violent activities include
use of kidnappings, assassinations, and extortion.
2. Both operate secretly, though at times publicly in friendly territory.
3. Both defy the state and the rule of law. They present great security threat to the
nations.
4. Both are highly adaptable, innovative, and resilient.
5. They both have provided social services, though this is much more frequently seen
with terrorist groups.
3. Linkages
1. Money through money laundering is used to fund the terror organisations. Hawala
transactions of real estate in India are said to be used by terror groups in Pakistan to
fund its activities.
2. Drug trafficking started as an organised crime and has emerged as a threat to nation
states because of its association with terrorist groups. Taliban in Afghanistan is
reportedly making some $100 million a year from drugs. Terrorists give protection
and support to drug traffickers with fire arms, and the drug traffickers, being
acquainted with the routes, assist the terrorists in border crossings.
3. Large amount of illegal small arms are manufactured in various illegal arms factories
in Uttar Pradesh and Bihar and sold on the black market for cheap prices. The illegal
arms trafficking aids terrorists operating around the world and it is central to the
global war on terror.
4. Terrorist organisations not only utilise human trafficking for financial support, they
also use to obtain an entry point into countries. The slave trade is currently a multi
billion industry built on demand for single product i.e. fellow human beings.
5. Currency counterfeiting is one of the organised white collar crimes which has
assumed serious proportions in growing terrorism globally. Beyond issues of
intellectual property theft and consumer safety, there is the notion that counterfeit
sales directly fund terrorist organisations.

4. Factors which contributed to this

1. Alleged political nexus between the politicians and various groups all over the world.
2. Corporates fund the terror groups indirectly as it help them to expand their business
via arms trade, drug trade, oil production and post war facilities.
3. Poor performance of global police forces like Interpol in curbing this linkage
4. Money laundering, human trafficking goes unchallenged as regulations and laws are
not very effective.
 5. Regional instability, religious propaganda further fuel these linkages.
6. Poor national law and order situations and lack of control over cyberspace leaves
gaps in the security field.
5. There is a need for global cooperation in curbing the nexus. Adequate training and use of
data analytics and artificial intelligence monitoring tools to monitor socially harmful
developments.

Security forces

1. Law and order is a state subject of the state, therefore the bulk of the policing lies with the
respective states and territories of India. Larger cities also operate metropolitan
police forces (MPF) under respective state governments. The majority of federal law
enforcement agencies are controlled by the Ministry of Home Affairs.
2. Contribution of paramilitary forces
1. Disaster: During the 2013 Uttarakhand floods, Indo-Tibetan Border Police was the
first to respond to the catastrophe.
2. Organised crime: The paramilitary forces like the BSF, Sashastra Seema Bal, ITBP
deployed at borders check smuggling of drugs, fake currencies and human trafficking
along with border security.
3. Law and order: The CRPF personnel provides their services when law and order
situation goes beyond the control during riots or large scale violence.
4. Naxalism: The paramilitary forces are also deployed in fighting insurgencies and
violent activities like Naxalism.
3. Problems
1. There is shortage of man power which increases the workload on existing personnel.
It is found that CISF jawans have to do continuous duty for 15-18 hours.
2. There is an absence of a dedicated grievance redressal system. Ex: Recent BSF
Jawan video.
3. A paramilitary soldier was against the sahayak/buddy system where soldiers were
forced to do personal chores for senior officers of the force.
4. Poor working conditions like no housing facilities, poor food and low allowances
adds to problems.
5. Top most positions are occupied by IPS officers which leads to a low morale that
translates into low efficiency.
6. Promotion system lacks a proper path and set indicators to identify the deserving
candidate.
7. They are devoid of justice. Armed forces tribunal does not cover them. Even Article
33 deters them to approach civilian judiciary.
8. No stability in terms of duration of posting and no peace posting. There are many
accompanying services like, VIP security, law and order and election duty.
9. Till lately gallantry awards such as Paramvir chakra, Shaurya Chakra and Kirti
Chakra were reserved only for the armed forces.
10. Government does not accord them the status of a martyr.
4. Steps taken by Government
1. Increased hardship allowances will be given to CAPF jawans in Naxal areas. Posting
 of choice after serving in the naxal affected areas.
2. To curb depression among jawans, yoga, meditation and recreation facilities are
provided.
3. A rational and fair leave policy and well regulated duty hours to provide optimum
rest.
4. Increased interaction between jawans and officers were part of the 14 measures
undertaken by government to boost morale.
5. Retention of housing in last posting to ensure education of children of the forces
remain undisturbed.
6. 7th Pay Commission has recommended a review of posts earmarked for IPS officers
and recommended to open higher positions for CAPF officers as well.
5. Issues with Border Guarding forces
1. Jawans are overworked and hence fatigued during the patrolling duty.
2. Medical facilities for personnel posted on the border are severely inadequate. The
personnel had to be transferred to frontier head quarters for even basic treatment.
3. Disparity in wages and allowances in comparison with the army.
4. There is an absence of a dedicated grievance redressal system. Poor working
conditions like no housing facilities, poor food and low allowances adds to problems.
5. There is no mobile connectivity in Border Outposts (BOPs) and the only available
means of communication with their families is through satellite phones.
6. Deficiency of some surveillance equipment, like Hand-held Thermal Imagers, which
are essential for surveillance during night.
6. Recommendations
1. The proposals of BGFs to raise additional number of battalions should be considered
on a priority basis.
2. Composite BOPs should be developed with telephone, medical facilities etc.
3. Hard area allowance should be exclusively decided on the basis of climatic and
geographical conditions of the area of deployment and should be uniform for
personnel of all the forces, be it CAPFs or Army.
4. To curb depression among jawans, yoga, meditation and recreation facilities are
provided.

Media in security challenges

1. Media is 4th pillar of democracy. Any communication channel through which any kind of
information, news, entertainment, education, data, promotional messages etc., can be
disseminated is called media.
2. Why media can be dangerous
1. In the 26/11 attack, the handlers of the terrorist used the media coverage to tell them
the exact locations of the policemen and advised them about the best way to attack
the police. Also the goriest details of the attack were shown virtually non-stop.
2. India is full of incidents of communal tensions most particularly between Hindus and
Muslims. Media is often criticised for its non-stop coverage of these incidents which
might incite the communities to further wreak havoc. Even print media sometimes
thoughtlessly carries messages from the leaders of opposing factions creating further
 tensions.
3. During 2013 Assam riots, social media and the SMS were blamed for rumour
mongering during the Assam unrest. They were alleged of misrepresentation of facts
and doctoring news which led to huge migration of north easterners across the
country.
4. Also the media networks are regularly hacked by enemy countries to spread false
information and to recover classified data. Recently New York Times (NYT) and
Twitter servers were hacked by Syrian agencies.
5. Countries like US are not only snooping on their own citizens but are also able to
freely intrude the privacy of any individual in other countries too. US has the specific
advantage of having the servers of main social networking sites like Facebook,
Twitter etc. within its frontiers and hence in the outreach of their laws.
3. Possible ways to plug the shortcomings of media
1. Sensitising journalists about the possible effects of non-stop display of gory images
during coverage of riots, terrorist affected areas etc.
2. Preparing guidelines for the coverage of areas affected by man-made disaster. Ex:
Indian media in during Nepal earthquake.
3. Building solid networks and creating a task force to combat any kind of hacking.
4. Experts have suggested India to build our own social networks like the way China
has its own.
4. Mis-use of social media
1. To spread fake news.
2. Propaganda, radicalisation and recruitment by terrorist organisations.
3. Influence the outcome of elections. Ex: Alleged Facebook role in US elections.
4. Targeted advertisements by companies and political parties.
5. Hate against women and minorities.
6. Privacy issues.
5. Measures by the government
1. Social Media Communication Hub - to monitor social media.
2. Network Traffic Analysis (NETRA) - to detect selective words.
3. Lawful interception and Monitoring Project (LIM) - For surveillance.
4. Draft IT (intermediary Guidelines) Amendment rules, 2018.

Naxalism

1. Government efforts
1. National Policy and Action Plan implemented by MHA since 2015 is a multi-
pronged strategy in the areas of security, development, ensuring rights & entitlement
of local communities etc. to combat Left Wing Extremism (LWE).
2. Integrated Action Plan (IAP) for accelerated development of selected tribal and
backward districts by providing public infrastructure and services.
3. Special Central Assistance (SCA) for 35 most LWE affected districts.
4. Infrastructure development initiatives like mobile towers, roads, etc.
 5. Skill Development related schemes like ROSHNI under DDUGKY.
6. Surrender and rehabilitation policies. The surrenderees are also imparted vocational
training with a monthly stipend.
7. Black Panther combat force and Grey Hounds strategy.
8. Constructively engaging youth through education.
9. Other measures like more bank branches have been opened to ensure financial
inclusion.

AFSPA

1. Armed Forces (Special Powers) Act, enacted in the year 1958, grants extraordinary powers
and immunity to the armed forces to bring back order in the disturbed areas. AFSPA
empowers the Governor of the State to issue an official notification declaring the state or a
region within as a “disturbed area", after which the Centre can decide whether to send in
armed forces.
2. Some of these extra-ordinary powers include Fire upon anyone after giving
warning, Arrest anyone without warrant, Stop and search any vehicle or vessel and Armed
forces personnel have legal immunity for their actions.
3. Arguments for AFSPA
1. AFSPA is required to deal with terrorists and insurgents whose stated objective is
breaking up the country.
2. Many argue that removal of the act will have a demoralising effect on the armed
forces.
3. Without AFSPA militants may motivate and threaten locals to file lawsuits against
the army.
4. Army require minimum safeguards from legal harassment and empowerment of its
officers to decide on employment of the minimum force that they consider essential.
5. AFSPA is necessary to maintain law and order in disturbed areas, otherwise things
will go haywire. The law also dissuades advancement of terrorist activities in these
areas.
4. Arguments against AFSPA
1. Abuse of power: It has been alleged that immunity granted by the act has led the
armed forces to misuse the powers given to them by this act and commit offences
like fake encounters and sexual assault. Justice Santosh Hegde Committee to
investigate fake encounters in Manipur described it as a “symbol of oppression”.
2. Terrorism: It has failed to contain terrorism and restore normalcy in disturbed areas,
as the number of armed groups has gone up after the act was established. Many even
hold it responsible for the spiralling violence in areas it is in force.
3. Threat to fundamental rights: It leads to suspension of fundamental rights and
liberties guaranteed to the citizens by the constitution. Thus, it weakens
democracy. Human rights violations in AFSPA areas are not inquired into and
followed by adequate action. Thus, it is against the principle of natural justice.
4. Diminishing credibility of democracy: People’s disillusionment with democratic
setup is exploited by secessionists and terror sympathasizers, which leads to more
 violence & more counter violence creating a vicious cycle.
5. Excessive use of force and using it despite having other options to explore.
6. The decision of the government to declare a particular area disturbed cannot be
challenged in a court of law. Hence, several cases of human rights violations go
unnoticed.
5. The justice Jeevan Reddy committee recommended that it should be repealed and the
Unlawful Activities Protection Act strengthened to fight militancy.
6. Observations made by SC
1. AFSPA should be only used to supplement the civil authority and not supplant the
same by putting in place military administration.
2. The Section 6 of AFSPA which precludes any prosecution, suit or legal proceeding
against personnel of the security forces is no longer valid if the deaths of civilians are
unjustified.
3. Every death caused by the armed forces in a disturbed area, be it of a common person
or a criminal, should be thoroughly enquired into.
4. Use of excessive and arbitrary force is unreasonable be the person a criminal,
insurgent, terrorist and militant.
7. Recommendations of the Reddy Committee
1. In case the situation so warrants, the state government may request the Union
government to deploy the army for not more than six months.
2. The Union government may also deploy the armed forces without a request from the
state. However, the situation should be reviewed after six months and Parliament’s
approval should be sought for extending the deployment.
3. Non-commissioned officers may continue to have the power to fire.
4. The Union government should set up an independent grievances cell in each district
where the Act is in force.
8. Way ahead
1. Rooting out AFSPA totally might create an atmosphere of chaos, and chances of
terror attacks will increase.
2. The Ministry is waiting for the State governments say on the idea to take a come out
with a final verdict.
3. Amending the AFSPA act to delist offences like sexual offence etc from it and trying
them out under other state and national criminal laws.
4. Slowly phasing out AFSPA based on threat perception from such areas and
strengthening local police and security officers.
5. Proactive role by local government towards real development, especially in social
sectors.
6. In areas where AFSPA exists, having a robust judicial mechanism withering Army to
weed out elements from within who indulge in such violation for promotion and
awards.

Linkages between extremism and development

1. Developmental issues which pertain to the spread of extremism are linked to lack of access
to basic resources to sustain livelihood. However, development is a useful tool against
 extremism but it must operate in tandem with the security forces.
2. Factors that lead to extremism
1. Forest policy: In the name of development, habitat of adivasi communities were
declared reserve forests and in accordance with forest conservation act 1980. Rights
of primitive forest dwellers were restricted resulting in losing access to land. This
gave rise to extremist activities.
2. Land alienation: 40% of rural households have no land or less than half of acre of
land, increased marginal land holdings, no land reforms, insecurity and exploitation
of tenants and unrest leading to extremism.
3. SEZ: Land acquisition for SEZ again deprived poor of their lands. Also led to loss of
revenue in the form of taxes. Loss of food production as huge block of productive
lands acquired for SEZ; major impact in livelihood resource, leading to conflict.
4. Common property resources (CPR): CPR’s contributes effectively to the rural
economy and provides sustenance to local communities. CPR includes such as
community pasture, watershed drainages, village tanks etc. But due to
industrialisation, privatisation and development projects, the CPRs area is shrinking
and govt. never look in to this matter.
5. Delayed process of adjudication: Considerable frustration gets built up in the
society when conflicts and disputes are not settled in time because of formal and
slow judicial system which ends up with illegal extremist mind framework.
6. Rehabilitation: Displacement or forced eviction of people occur due to
developmental projects. Tribal people are most prone to displacement because tribal
areas are rich in mineral resources such as Orissa, Jharkhand. This impacts
multidimensional trauma on them leading to serious consequences.
7. Unemployment: High poverty, unemployment and insecurity of livelihood which
lead to anger, dissatisfaction amongst youth of extremist affected area.
8. Environment degradation: Land targeted for mineral extraction, agriculture land
getting barren, water and air pollution degrade the quality of life.
9. Moreover, tourism industry in this development scenario is posing a great threat to
the existing tribal life which is interwoven with ecology. The introduction of foreign
influence and commercialisation is triggering the process of disintegration of tribal
society leading to extremist activities.
3. Developmental solutions to problem of extremism
1. PESA, MNREGA, Scheduled tribes and other traditional forest dwellers acts must be
to the spirit of the law. Gram Sabhas must be granted more powers.
2. Land tribunals or fast track courts must be set up for speedy disposal of land ceiling
cases. The loopholes in the respective state ceiling laws must be corrected.
3. Government should strengthen the subsidiary and supportive activities in
horticulture, poultry, fisheries, animal husbandry under the strict guidelines of
ministry of agriculture through establishment of quality infrastructure and efficient
market linkages at the village level.
4. Universalise basic social services to standards amongst the people of extremist
affected areas so that the discriminatory manifestations of governance can be
removed.
5. Since problems in formulating a counter-extremist policy as well as in dealing with
the issue on a day-to-day basis are sourced to the lack of centre-state cooperation, a
 permanent institutional mechanism in the form of a coordination centre can be
established to thrash out emerging differences.
4. Other measures required to curb extremism
1. Increased developmental expenditure and activities, creation of infrastructure
resources and employment generation through development of industries and
tourism. Steps from both the public and private sector are required for the desired
results.
2. With nearly 99 per cent of its borders shared with other countries, the Northeast can
be a bridge to a most dynamic neighbourhood beyond the meeting point of South and
Southeast Asia. So, we need to liberalise the cross border trade.
3. Improved political representation in India’s Parliament. The collective strength of the
Northeast States in the Lok sabha is 24 in a 543 member house, and this has led to a
neglect of issues relating to this region. Bringing the extremists into mainstream can
be done as Rajiv Gandhi Govt did it in case of Mizo National front in Mizoram.
4. Restoration and strengthening of institutions of local self-governance, including
strong village and tribal councils. Restoration of the integrity of governance, and the
various institutions of civil governance, including justice administration.
5. Disruption of the underground economy of terrorism. The lucrative regime of
collusion between terrorists and various overground entities, including political
parties, the bureaucracy and business organisations must be challenged and
dismantled.
6. Better surrender policy should be adopted. Better coordination with neighbouring
countries and information exchange regarding extremist’s activities is very crucial.
7. Use of satellite imaging and drone technology can help in monitoring the extremist
activities.
8. There must be active promotion of a culture of peace that rejects and de-legitimises
political violence as a means to the resolution of political problems or grievances.

External state and Non-state actors

1. State actors refer to those entities which have formal backing of a sovereign state for
carrying out any intended action. Examples of state actors are the army, bureaucracy,
intelligence agencies etc.
2. Non-state actors are individuals or organisations that have powerful economic, political or
social power but do not belong to any particular country or state. They include NGOs,
MNCs, religious outfits, Mafias, terrorist groups etc. They may work in tandem for the
peace, stability and development of a country or they may work against the state.
3. External state
1. The state may carry out a limited war against Indian state and this might have
ramifications for our internal security. There have been instances where state actors
have been responsible for carrying out a limited cyber warfare through hacking and
other espionage.
2. They might support the various insurgent groups, Naxalites, or separatist groups
through funding, training or logistics which might pose a threat to our internal
security. Ex: Pakistan’s ISI.
4. Non-state actors
 1. Non-state actors from the neighbouring country have been carrying out a proxy war
since decades in order to bleed India to death. Ex: Jihadis
2. Certain NGOs and so called civil society organizations also work in a clandestine
manner to provoke discontent sections of Indian society which creates internal
security issues. Ex: Protests against nuclear plants, etc.
3. Various dubious non-state actors run fake currency rackets which pose a challenge to
the economic security of India.
4. Various organised crime syndicates have been running drug rackets which also create
internal security issues through the illicit flow of money.
5. Both state and non-state factors from outside have created problems in our internal
security framework. Hence while it is imperative to guard our borders and strengthen
our diplomacy, on the other hand, we need to check the various non state actors who
come in hidden forms.

Indian Ocean Naval Symposium (IONS)

1. IONS was launched in 2008 under the aegis of the Indian Navy and consists of 32 nations,
including eight observer states. The IONS is a voluntary initiative that seeks to increase
maritime cooperation among navies of the littoral states of the Indian Ocean Region (IOR)
by providing an open and inclusive forum for discussion of regionally relevant maritime
issues.
2. In addition to fostering maritime cooperation, other principle objectives of IONS were to
promote a shared understanding of maritime issues facing the region, formulate strategies
and cooperative mechanisms to enhance regional maritime security, and strengthen
capabilities to ensure speedy response to requirements of Humanitarian Assistance and
Disaster Relief (HADR) in the IOR.

Cyber security

1. Cyber security means securing the cyberspace from attack and economic espionage.
Cyberspace is interconnectedness of IT infrastructure such as Internet, Telecom networks,
computer systems etc. In 3rd Global Cybersecurity Index released by the ITU, India
slipped to 47th rank in 2018 from 23rd in 2017.
2. Cyber crimes
1. Cyber defamation: It is defamation by anything which can be read, seen or heard
with the help of computers.
2. Corporate smear: It is a false rumour about a company, its management or its stock
that is posted on the Internet. This is bad for business.
3. Digital forgery: Digital forgery implies making use of digital technology to forge a
document. It is used to make fakes IDs, cheques, currency, passports, visas, etc.
4. Gambling: The world of online gambling, due to its anonymity, unfortunately has
many other hazards like danger of illegal use of credit card or illegal access to bank
account.
 5. Illegal articles: There are certain articles like drugs, guns, pirated software or music
that might not be permitted to be sold under the law of a particular country.
6. E-mail spamming: Spam is an unsolicited message requiring one’s time and effort
to get rid off. The result, apart from loss of internet working hours, could be one of
mental agony and distress.
7. Cyber warfare: Cyber warfare is internet based conflict involving politically
motivated attacks on information and information systems. Cyber warfare attacks can
disable official websites and networks, disrupt or disable essential services, steal or
alter classified data, and cripple financial systems. In 2010, Stuxnet, which was
designed to attack Iranian nuclear programme.
8. Cyber terrorism: Cyber terrorism is the convergence of terrorism and cyber space.
It is generally understood to mean unlawful attacks and threats of attacks against
computers, networks, and information stored therein when done to intimidate or
coerce a government or its people in furtherance of political or social objectives.
3. Critical information infrastructure
1. Critical information infrastructure is communications or information service whose
availability, reliability and resilience are essential to the functioning of a modern
economy, security and other essential social values. Critical information sectors in
India include Power, ICT/Communication, Banking, Transport and e-governance.
2. The complex interactions among critical infrastructure leads to interdependencies. A
minor disruption at one point could have a rippling effect across multiple
infrastructures in India.
4. Need for cyber security
1. Government’s digital push: Various programs of government
such as Aadhaar, MyGov, Government e-Market, DigiLocker, Bharat Net etc. are
prompting a larger number of citizens, companies and government agencies to
transact online.
2. Start-ups digital push: India is the third largest hub for technology-driven startups
in the world after USA and China.
3. Prevent economic loss: The estimated cost of cyber-attacks in India stands at $4
billion which is expected to reach $20 billion in the next 10 years.
4. Increasing internet users: India ranks 3rd in terms of number of internet users after
USA and China.
5. To protect women and children who are more vulnerable. Women face threats of
cyber bullying, online harassment, etc. Child pornography.
6. The increasing business transaction from tangible assets to intangible assets like
Intellectual Property has converted cyberspace from being a mere info space into
important commercial space.
7. Another concern is that, money laundering, be serious crime becomes much simpler
through the use of net. Therefore cyberspace needs to be regulated to curb this
phenomenon.
8. Cyber terrorism.
5. Challenges to cyber security
1. Digital illiteracy: which makes Indian citizens highly susceptible to cyber fraud,
cyber theft, etc.
 2. Substandard devices: In India, majority of devices have inadequate security
infrastructure making them susceptible to malware such as recently detected Saposhi.
There is also Rampant use of unlicensed software.
3. Lack of adoption of new technology: For example, in Banking sector, 75% of total
Credit and Debit card are based on magnetic strip which are easy to be cloned.
4. Import dependence: Majority electronic devices used in power sector, defence and
other critical infrastructure are imported and makes India vulnerable.
5. Trained staff: There are currently around 30,000 cyber security vacancies in India
but demand far outstrips supply of people with required skills.
6. Anonymity: Even advanced precision threats carried out by hackers is difficult to
attribute to specific actors, state or non-state.
7. Lack of coordination among various agencies: Further, Private sector, despite
being a major stakeholder in the cyberspace, has not been involved proactively for
the security of the same.
8. Other challenges: Include absence of geographical barriers, majority of servers
located outside India, etc
6. Tools to protect against cyber threats
1. Traditional tools: Importance of use of antivirus, firewalls, strong passwords, secure
wi-fi connection, training to netizen, etc. need to be emphasised.
2. Digital signatures: A digital signature is a technique by which it is possible to secure
electronic information in such a way that the originator of the information, as well as
the integrity of the information, can be verified.
3. Encryption: One of the most powerful and important methods for security in
computer systems is to encrypt sensitive records and messages in transit and in
storage. At present, information and data security plays a vital role in the security of
the country, the security of the corporate sector and also of every individual, working
for personal benefit.
4. Security audit: A security audit is a systematic evaluation of the security apparatus
of the company. It is to find out the vulnerabilities that an organisation is facing with
its IT infrastructure.
5. Cyber forensics: Cyber forensics is the discovery, analysis, and reconstruction of
evidence extracted from any element of computer systems. It gathers digital evidence
that is distributed across large-scale, complex networks.
7. National Cyber security Policy, 2013
1. In light of the growth of IT sector in the country, the National Cyber Security Policy
of India 2013 was announced by Indian Government in 2013 yet its actual
implementation is still missing. As a result fields like e-governance and e-commerce
are still risky and may require cyber insurance in the near future. To build secure and
resilient cyber space.
8. Features cyber security policy, 2013
1. Creating a secure cyber ecosystem, generating trust in IT transactions.
2. The NCIIPC is to be the nodal agency to protect critical infrastructure, while another
24×7 agency, CERT-In, is to coordinate all emergency response and crisis
management.
3. Creating workforce of 5,00,000 professionals in the field.
4. Fiscal benefits for businessman who accepts standard IT practices, etc.
 5. Indigenous technological solutions need to be developed to reduce reliance on
foreign software. Testing of ICT products and certifying them.
6. All organisations should designate a CISO and allot a security budget.
7. Encourage use of public key infrastructure (PIK) for various government services.
8. Engage infosec professionals to assist e-governance initiatives, establish centres of
excellence, cyber security concept labs for awareness and skill development, etc.
9. Critical analysis of cyber security policy
1. The policy mainly covers defensive and responsive measures and makes no mention
of the need to develop offensive capability.
2. The policy promises to develop a dynamic regulatory framework for technological
developments without explaining what this framework would aim to do.
3. The policy avoids addressing privacy vs security, censorship vs freedom of speech
and use of indigenous security products versus importing vulnerable technology.
4. The coordination of cyber security among various sectors of economy remains under
the ambit of CERT-In. CERT-In is an civilian agency functions under the department
of information technology.
5. Most of the cyber crimes are expected to be dealt with by the local police under state
government in combination with outside consultants. No efforts are taken to upgrade
skills of local police.
6. Most of the IT services have migrated to cloud computing now. NCSP is silent on
dealing with threats emanating from new technologies. An earlier and constant
revision of policy would make it more meaningfully equipped.
7. CSP fails to address the overreach of state in cyberspace. Further, with state
outsourcing to private companies to build systems for mass surveillance, there is
every chance of private data falling into wrong hands.
8. Lack of awareness and the culture of cyber security at individual as well as
institutional level.
9. Lack of trained and qualified manpower to implement the counter measures. We have
only 5000 cyber security professionals, where as China has around 5 lakh personnel.
10. Various steps taken in India
1. Institutional Measures
1. National Critical Information Infrastructure Protection Centre (NCIIPC) to
battle cyber security threats in strategic areas such as air control, nuclear and
space.
2. National cyber coordination centre (NCCC) to scan internet traffic coming into
the country.
3. A new Cyber and Information Security (CIS) Division has been created to
tackle internet crimes such as cyber threats, child pornography and online
stalking. Cyber Warrior Police force has also been established.
4. CERT-in to enhance the security through proactive action and effective
collaboration. CERT-in is also operating Cyber Swachhta Kendra, a Botnet
Cleaning and Malware Analysis Centre. Government inaugurated the new body
NIC-CERT to prevent and predict cyber-attacks on government utilities.
5. Cyber Surakshit Bharat Initiative to strengthen cyber security ecosystem in
India. It is first PPP of its kind and will leverage the expertise of the IT
 industry in cybersecurity.
6. The Ministry of Home Affairs is implementing Cyber Crime Prevention against
Women & Children scheme.
2. Legislative measures
1. Information Technology Act, 2000 (amended in 2008) to provide a legal
framework for transactions carried out by means of electronic
data interchange,for data access for cybersecurity etc.
2. National Cyber Security Policy 2013.
3. International measures
1. Budapest convention on cybercrime: Only binding international instrument.
2. Paris call for cyber security.
3. Global centre for cyber security: It was launched by the World Economic
Forum (WEF) to serve as laboratory and early-warning think tank for future
cybersecurity scenarios.
4. Cyber diplomacy: India has entered into cyber security collaborations with
countries such as the USA, European Union and Malaysia.
11. Cyber security is an important part of our life today. Everything from national critical
infrastructure to our basic human rights are dependent on secure cyber
world. Governments are therefore urged to consider policies that support continued growth
cyber security.

Money laundering

1. Money laundering is the process by which large amount of illegally obtained money, from
drug trafficking, terrorist activity or other serious crimes, is given the appearance of having
originated from the legitimate source. It allows the criminals to maintain control over their
proceeds.
2. Money laundering is an issue that has gained increasing significance following the events
of 9/11. It has recognised it as a source of the funding of terrorist activities. The spread of
international banks all over the world has facilitated the transmission and the disguising of
the origin of funds.
3. Stages of money laundering

4. Impact of money laundering

1. The infiltration of illegitimate money into financial sector can threaten economic and
political stability.
2. Economic crimes also have the potential of adversely affecting people who do not
prima-facie, seem to be the victims of the crime. For example, tax evasion results in
loss of government revenue, thus affecting the potential of the government to spend
on development schemes.
3. Organised crime can damage credibility of financial institutions and make it look less
attractive for potential investors, thus making country lose investments.
4. Money laundered is often placed in what are known as sterile investments, or
 investments that generate little additional productivity.
5. Launderers can offer bribes to public officials. This may have devastating social
consequences.
6. It also provides fuel for drug dealers, terrorists, illegal arms dealers, corrupt public
officials and all types of criminals to operate and expand their criminal activities.
Laundering enables criminal activity to continue. Thus, money laundering can not
only lead to economic offence but may also be a threat to international peace and
security.
5. Challenges in tackling money laundering
1. Growth of Technology: The enforcement agencies are not able to match up with the
speed of growing technologies.
2. Non-fulfilment of the purpose of KYC Norms: Increasing competition in the
market is forcing the Banks to lower their guards and thus facilitating the money
launderers to make illicit use of it.
3. Widespread act of smuggling: There are a number of black market channels in
India for the purpose of selling goods.
4. Lack of comprehensive enforcement agencies: Separate wings of law enforcement
agencies dealing with money laundering, cyber crimes, terrorist crimes, economic
offences etc lack convergence among themselves.
5. Tax-haven countries: They have long been associated with money laundering
because their financial secrecy laws allow the creation of anonymous accounts while
prohibiting the disclosure of financial information.
6. Steps
1. India has criminalised money laundering under the PMLA, 2002.
2. India has also criminalised money laundering under Narcotic Drugs and Psychotropic
Substances Act, 1985 (NDPS Act), as amended in 2001.
3. Enforcement Directorate (ED) for investigation and prosecution of cases under the
PMLA.
4. Financial Intelligence Unit – India (FIU-IND) for receiving, processing, analysing
and disseminating information relating to suspect financial transactions.
7. PMLA, 2012
1. Bill has introduced the concept of corresponding law to link the provisions of Indian
law with the laws of foreign countries.
2. It also adds the concept of reporting entity which would include a banking company,
financial institution, intermediary or a person carrying on a designated business or
profession.
3. The Prevention of Money Laundering Act, 2002 levied a fine up to Rs. 5 lakh. The
amendment act has removed this upper limit.
4. The act has provided for provisional attachment and confiscation of property of any
person (for a period not exceeding 180 days). This power may be exercised by the
authority if it has reason to believe that the offence of money laundering has taken
place.
5. The bill expands the definition of offence under money laundering to include
activities like concealment, acquisition, possession and use of proceeds of crime.
8. PMLA, 2018
 1. Amendment in definition of “proceeds of crime”: It now allows the ED to proceed
against assets of equivalent value located even outside the country.
2. Bail provisions: It also makes the applicability of bail conditions uniform to all
the offences under PMLA. The proposal comes after the Supreme Court recently
struck down the previous stringent provisions.
3. Corporate frauds: Corporate frauds is being included as scheduled offence
under PMLA, so that Registrar of Companies can report such cases for action
by Enforcement Directorate for money laundering probe.
4. Details sharing: The amendment also makes it mandatory for the ED to share
relevant details with other agencies.
5. Restoration of property: The amendment allows special court to restore confiscated
assets to the rightful claimants even during the trial. Earlier, the assets could be
restored only after completion of the trial.
9. International level
1. FATF: FATF is an intergovernmental body established by the G7 summit in Paris in
1989 and responsible for setting global standards on anti-money laundering and
combating financing of terrorism. Blacklisting of countries by FATF.
2. OECD: Automatic Exchange of Financial Information by many countries as part of
the OECD initiative.
3. BEPS: Base Erosion and Profit Shifting (BEPS) initiative, under which the countries
have agreed to take necessary measures.
4. UN convention against illicit traffic: It combats drug trafficking organizations by
emphasising attacking the goal of all organised crime, and also its weakest point
namely money itself.
5. UN convention against organised crime: It is designed to combat the phenomenon
of transnational organised crime.
10. P-notes
1. Participatory Notes (P-Notes) are instruments used by foreign investors not
registered with the SEBI to invest in Indian securities. They are issued
overseas against underlying Indian securities (like shares).
11. P-notes and money laundering
1. P-Notes hides the identity of the investor. According to the ‘White Paper’ on black
money (2012) prepared by the central government, a considerable portion of PNs are
used by wealthy individuals who uses it as a mechanism to channelize black money
kept in foreign countries to India. The Special Investigation Team (SIT) on black
money also recommended the phasing out of P-Notes.
2. In addition, SEBI has no jurisdiction over P-note trading. Although FIIs must register
with SEBI, the P-notes trading among FIIs are not registered, leading to concern that
P-notes are being used for money laundering.
12. SEBI measures to phase out p-notes
1. SEBI barred their issuance for speculative purposes from checking any misuse for
channelizing black money. So, P-Notes can be issued only for the purpose of
hedging (safeguarding) with respect to the equity shares held.
2. SEBI tightened P-Note norms by deciding to levy a fee of USD 1,000 on each
instrument.
 [Link] had increased the know-your-customer (KYC) requirement.
4. It also issued curbs on transferability, and prescribed more stringent reporting for P-
Notes issuers and holders.
5. It also decided to relax the entry norms for foreign portfolio investors (FPIs)
willing to invest directly in Indian markets rather than through P-Notes.
6. It also mandated issuers to follow Indian anti-money laundering laws instead of
norms prevalent in the jurisdiction of the end beneficial owner.
13. Measures to stop fake currency
1. It is necessary to stay ahead of counterfeiters. RBI needs to constantly upgrade both
paper based (water mark) and print based (optical variable ink, see through effect)
security features.
2. Promote digital transactions and increase digitisation of economy.
3. Frequently demonetise higher denomination notes like Rs.500 and Rs.2000.
4. Increase cooperation among law enforcement agencies, border security agencies,
police, etc.
5. External dependence on security paper and ink could be reduced by increasing
indigenous production. As most the paper is imported from EU, it can be asked to
keep tight monitoring over currency rated printing in Pakistan.

ASAT test

1. Recently, India tested its first anti-satellite (ASAT) missile as part of ‘Mission Shakti’
against a previously launched live satellite. An anti-satellite weapon is anything that
destroys or physically damages a satellite for strategic military purposes. Only the United
States, Russia, China, and now India have demonstrated this capability
successfully. Mission Shakti is India’s response to the potent case of future weaponisation
of space, where enemy nation can indulge in space war to disrupt critical infrastructure of
the nation.
2. Significance of mission Shakti
1. India’s entry in the elite group of 4 countries.
2. Entire effort is indigenous.
3. Addressed the concerns of Space Debris. DRDO has said that all the debris of India’s
ASAT will decay in 45 days.
4. Develops credible deterrence during war. The anti-satellite space technology shows
India’s focus on security challenges, emanating beyond Pakistan.
5. Test done before any kind of international sanctions come in place as UN General
Assembly is trying to bring about an international legally binding document on the
prevention of an arms race in outer space.
6. Did not invite international criticism and won’t impact other strategic interests.
3. Space militarisation
1. Space militarisation refers to the ecosystem of space systems that are utilised to
achieve military objectives. It involves strategic planning, surveillance and
telecommunication and reconnaissance as well as real time combat through
placement and development of military technology in outer space.
2. Space weaponisation on the other hand refers to more aggressive and offensive use of
 space systems for military purposes where outer space itself emerges as the
battleground and weapons are placed and created in space that travel from earth to
attack or destroy targets in space.
3. China is making serious advances in weaponising the outer space creating the fourth
frontier of war in space by making strides in ICBM programme.
4. The US President had in the recent past announced the creation of a “space force” or
a sixth branch of the American armed forces.
5. With the launch of GSAT-7, India officially placed its first military satellite in orbit
and after successful launch of Agni-V, India acquired capabilities to take down
enemy satellites in low earth orbits.
6. India recently became the fourth country after Russia, USA and China to possess the
competency to take down an enemy in space. It achieved this feat by shooting down
a low-orbit satellite through an anti-satellite weapon ASAT which is a part of
Mission Shakti.
4. Is India entering into Arms race
1. India has always maintained that space must be used only for peaceful purposes.
India is against the weaponization of Outer Space.
2. India is a party to all the major international treaties relating to Outer Space.
3. India already implements a number of Transparency and Confidence Building
Measures.
4. India also supported UNGA resolution on No First Placement of Weapons on Outer
Space.
5. India supports the substantive consideration of the issue of Prevention of an Arms
Race in Outer Space.
5. There is no global regulatory regime to address the growing militarisation in space. There
is a need of separation between civilian and military use of outer space. The 21st century
should move towards peace and prosperity rather than conflicts and arms races.

Defence

1. India is one of the largest importers of conventional defence equipmentsand spends about
31.1% of its total defence budget on capital acquisitions. About 70% of its defence
requirements are met through imports.
2. DPP, 2016
1. DPP, 2016 focuses on institutionalising, streamlining and simplifying defence
procurement procedure to give a boost to “Make in India” initiative, by promoting
indigenous design, development and manufacturing of defence equipment.
2. The category of Buy (Indian - IDDM) has been accorded top most priority for
procurement of capital equipment.
3. It involves an initial procurement of equipment followed by indigenous production
through comprehensive transfer of technology.
4. It aims at developing long-term indigenous defence capabilities. It reserves projects
not exceeding development cost of Rs. 10 crore (government funded) and Rs. 3 crore
(industry funded) for MSMEs.
5. DPP also provides for a Defence Offset Policy.
 3. Other policies
1. Strategic Partnership Policy: Under this policy an Indian private company would
be selected in each segment which would tie up with shortlisted global Original
Equipment Manufacturer (OEM) to manufacture the platforms in India under
technology transfer.
2. FDI Policy has been revised to allow under automatic route upto 49% and beyond
49% through Government route.
3. Government is establishing two Defence Industrial Corridors (Uttar Pradesh and
Tamil Nadu).
4. Launch of ‘Mission Raksha Gyan Shakti’ which aims to provide boost to the IPR
culture in indigenous defence industry.
5. Defence Investor Cell has been created in the Ministry to provide all necessary
information required for investment in the sector.
4. Developing an indigenous defence manufacturing industry has strategic, economic and
social advantages. India needs to pursue the idea of indigenisation with strong
commitment.

Mob-lynching

1. Reason for spread of fake news

1. Faster spread of Information: Social media allows super quick spread of fake
news.
2. No regulator for social media: The New Media is not investing enough in fact
checking.
3. Time consuming process to trace fake news: Studies have shown that correcting
and/or debunking a piece of fake news/dangerous rumour online takes an average of
12 hours. In 12 hours, a dangerous rumour can travel online several times around the
world.
4. End to end encryption: Whatsapp platform is encrypted end-to-end at the device
level thus all data is stored on the device and not on servers. This further creates the
problem in tracking the originator of the message.
5. Behavioural issues: Studies have demonstrated that people tend to circulate falsities
far faster than facts, especially if such false information conforms to users’ biases.
6. Socio-political reasons: The lynching is also a result of disrespect for an inclusive
social order, rising intolerance and growing polarisation. Thus hate crimes is a
product of intolerance, ideological dominance, role of bigotry, non-acceptance of
plurality and diversity in creating an atmosphere where human beings are
dehumanised.

2. Steps that need to be taken

1. Role of police: Swift response from police. Communicty policing and other ways of
intelligence gathering.
2. Role of enforcement authorities: Similarly, enforcement agencies need to develop
standard operating protocols to tackle such situations.
3. Role of local authorities: The district administrations and gram panchayats have
should be asked to reach out to locals to persuade them against falling for rumours
 and to come to the authorities if they have any fears.
4. Creating deterrence: There is a need to instill fear of the law in lynch mobs.
5. Mass awareness: Mass awareness campaigns and outreach is needed in communities
which place a high degree of trust in the written word to treat what they receive on
their mobile phones with a degree of healthy skepticism.
6. Media literacy: The government needs to invest much more resources into education
of children and adults alike, in media literacy.
7. Posting counter-videos: The one of the method to check fake news is to post
counter-videos clarifying the actual position, the other is to register the offences.
8. Localisation of data: The government should also ask the social media giants to
establish and install servers in India.

North-east

1. Northeast India has an extraordinarily important international strategic dimension and is a

vital part of the nation’s defence architecture.
2. Significance
1. NER shares about 5,437 km of international boundaries with Bangladesh, Bhutan,
China, Myanmar and Nepal. It is not only India’s land bridge to Myanmar but also a
gateway to south-east Asia and beyond. It is important for realising the objectives of
‘Act East Asia Policy’.
2. Total coal reserves in the NER is estimated at 1.6 billion tonnes. These were
exported in the past. Limestone deposits are found extensively throughout the
NER. Petroleum, natural gas and uranium are other natural resources to be found in
the NER.
3. The total forest cover in the region is 65.3 percent of its geographical area, which is
thrice the national average of 21.5 per cent.
4. North-east is gifted with highly fertile land, the Northeast region is the world’s
largest producer of tea as well.
5. Hydropower potential for the NER is 40 percent of India’s total hydropower
potential.
6. The NER’s natural scenic beauty and distinct ethnic heritage offers great attractions
for mountaineering, trekking and other tourist activities.
7. Its proximity to international markets to both south-western China and south-east
Asia, makes this region a potentially important base for foreign and domestic
investors.
8. The fertile Brahmaputra Valley has huge potential for export of a variety of
agricultural products, while its flora and fauna, natural scenic beauty, varied cuisine
and remarkable local handicrafts and performing arts can act as a magnet for
promotion of international tourism.
3. Current situation
1. Disparity in development within the region. The heterogeneity among the NE states
is noteworthy and calls for a state specific development approach.
2. This area is strategically important for India both for its geographical location and
 the resources found there.

4. Government measures
1. North-East Vision 2020: Plan for infrastructure, economic development and human
resource development. Union Cabinet approved the North-East Industrial
Development Scheme (NEIDS) to incentivise new industrial units in manufacturing
and services sector in the region.
2. Infrastructure development: Special Accelerated Road Development Program for
North East (SARDP NE), inland waterways, connectivity through Railways.
3. Make in North-East: To promote exclusive North East expertise in areas like tea
processing, organic farming, food processing etc.
4. Skill development: PMKVY and DDUGKY apart from states skill development
missions.
5. NERCoRMP (North-east Region Community Resource Management Project): A
livelihood and rural development project to transform lives of poor and marginalised
tribal families in region.
6. Financial support: North East Venture Fund, NE startups, MUDRA etc.
7. Trilateral highway: Trilateral highway between Myanmar, Thailand and India.
8. Kaladan multi-modal transport: Kaladan multi-modal transport to reduce
dependence on India’s chicken neck corridor.
9. Mekong-Ganga cooperation (MGC) launched to boost cooperation in tourism,
culture and education.
5. Challenges
1. Inadequate road, rail and air connectivity.
2. The tourism industry remains underdeveloped.
3. Despite abundant rainfall, the irrigation coverage in this region is less than the
national average.
4. Under-utilisation of available natural resources.
5. Safety and security related issues.
6. Difficulties in transfer of land on lease to entrepreneurs.
6. Factors that led to insurgencies
1. Historically, North-east was loosely administered under British India and even
before. So, some groups resist joining into our country.
2. A sense of general apathy from mainstream India and political neglect. This has lead
to poor development in the region.
3. 6th Schedule Autonomous Councils ended up creating multiple power centers
instead of bringing in a genuine process of democratisation in the region.
4. Northeast is territorially organized in such a manner that ethnic and cultural
specificities were ignored during the process of delineation of state boundaries in the
1950s, giving rise to discontentment and assertion of one’s identity.
5. The clubbing of all these states under the tag of northeast has tended to have a
homogenizing effect and locals developed an aversion to such a construct. A struggle
for own identity to carve out new states for them.
6. Geographically, it is just connected to India through chicken neck corridor which is
just 44 km.
 7. Presence of AFSPA.
8. Illegal migration from Bangladesh, Myanmar into Assam and Tripura.
7. Reasons for existence of Armed ethic groups
1. Political motivation: Most insurgent groups gather popular support by citing a
political cause, most important to the target population. For example, NSCN (IM)
argues that its political objective is Naga territorial unification and sovereignty based
on historical narrative of Naga independent status before British. ULFA uses politics
of Assamese exploitation at the hands of New Delhi in order to vindicate its demand
for separate Assamese homeland.
2. Arms: Small arms along with other communication gadgets are easily available
across the order especially in Bangladesh and Myanmar. This can escalate violence.
3. Support base: Insurgent groups critically depend on support base for financial help,
food needs, recruitment, intelligence gathering, etc.
4. External support: Many armed groups have thrived primarily due to strong external
influence from China, Pakistan, Bangladesh, etc. Both ULFA and NSCN had training
camps in Myanmar and Bangladesh. The 4500 km long porous boundary with China,
Myanmar and Bangladesh facilitates better movement into these countries.
5. Drug abuse: These groups raise their revenues through drug, human and animal
trafficking. North-east is close to Golden triangle.
8. Recommendations
1. Political solutions to the Assam problem should be discussed openly as widely as
possible to avoid backlash from the tribal and the minority population of the state.
2. A system of work permit should be issued so that the illegal Bangladeshi migrants do
not end up as Indian citizens.
3. The Autonomous District Councils (ADC) should be empowered. Institutional
capacities in the North east should be developed urgently.
4. Pragmatic land use policy should be formulated for attracting industries in the region.
Micro, small and medium enterprises (MSMEs) should be encouraged.
5. Local tourism should be promoted. Tourists residing in the eight North Eastern states
should be encouraged to travel within the region.
6. The North East region must be included in the India-ASEAN vision for trade and
cooperation. Development plan for the North-east should factor India-ASEAN
strategic cooperation.
7. Special economic zones (SEZs) along India-Bangladesh border, especially in
Meghalaya and Assam should be set up.
8. States should focus more on the development and security of the border areas.
9. Way forward for development of North-east
1. Each state within the NER may be encouraged to draw up their development
blueprint in consultation with the NITI Aayog and the North-East Council (NEC).
2. Different states in the NER have achieved success in different aspects of human
development. DoNER should document best practices of the region (Sikkim) and
disseminate its findings within the region so that the learning can be implemented
suitably in other states.
3. To address the issue of inadequate connectivity in the NER, India could consider
initiating a regional multi-modal transit agreement between the NER and the four
 neighbouring countries.
4. Government should focus on expediting projects, including the Kaladan Multi-Modal
Transit Transport Project, the India-Myanmar-Thailand Trilateral Highway.
5. NER is endowed with natural beauty, rich flora and fauna and a unique culture.
Tourism, particularly eco-tourism and adventure tourism, should be promoted by
identifying suitable sites and creating supporting infrastructure at these sites through
the PPP mode.
6. Focus on sectors such as organic agriculture, renewable energy, cottage industry,
etc.
7. Water management is a major issue in the NER. Early completion of ongoing
irrigation projects in Assam and Manipur under the AIBP, should be accorded high
priority.
8. One of the most pressing issues hampering the progress of hydropower projects in
the region is rehabilitation and resettlement (R&R). Attractive R&R packages should
be devised for hydropower projects in the region.
10. Have adequate road, rail and air connectivity, waterways, internet connectivity and
financial inclusion. This will form the platform upon which suitable interventions for all
sectors where the NER has a comparative advantage (for e.g., tourism, hydropower
generation, handicrafts, organic agriculture, etc.) can be effectively implemented.

National investigative agency (NIA)

1. National Investigation Agency (NIA) is a central agency established by the Government to

combat terror in the country. The agency is empowered to deal with terror related crimes
across states without special permission from the states. Till 2019 the NIA has seen a
91% conviction rate in terror cases.

2. Shortcomings in NIA
1. Overstretched intelligence network with limited staff and meagre budget. It is
currently operating with three-fourth of its sanctioned staff.
2. NIA at most of the times takes help in intelligence gathering from local police, who
are typically poorly trained and ill equipped.
3. There is lack of cooperation from state governments.
4. It is potentially open to political interference and it arguably should have jurisdiction
over additional offences that have a trans-national character.
5. India has multiple intelligence and investigation agencies along with the police. The
IB is the domestic unit and the RAW is an external spy agency. The military and
paramilitary organizations run their own intelligence wings.
6. NIA is not empowered to investigate a number of interstate and trans-national crimes
that require a national response.
3. NIA, 2009
1. NIA can investigate offences under Acts such as the Atomic Energy Act, 1962 and
the Unlawful Activities Prevention Act, 1967. For the offences under its purview,
NIA officers have the same power as other police officers and these extend across the
country.
 2. The existing Act allows the Centre to constitute special courts for NIA’s trials.
4. NIA amendment act, 2019
1. Type of offences that the NIA can investigate and prosecute is now expanded. As per
the Bill, the NIA will now have the power to investigate offences like human
trafficking, cyber terrorism, counterfeit currency etc.
2. The Bill gives NIA officers the power to investigate offences committed outside
India, subject to international treaties and domestic laws of other countries. The
Special Court in New Delhi will have jurisdiction over these cases.
3. The Bill states that the central government may designate Sessions Courts as Special
Courts for the trial of scheduled offences.
5. Criticism
1. Encroachment of Federal power.
2. Sessions courts are already burdened with many cases.

NATGRID

1. Importance of NATGRID
1. National Intelligence Grid or NATGRID is an intelligence grid connecting the
databases of 21 core security agencies to collect comprehensive patterns of
intelligence. These databases include railway and air travel, income tax, bank
account details, credit card transactions, etc.
2. Despite prone to such terror attacks, we don’t have a well formulated database of
these terror networks.
3. The idea is to collate and analyse vital data to get the complete view of a situation.
Details that take one to three months can be had within minutes.
4. NATGRID will tackle the problem of coordination between various law enforcement
agencies in various ministries.
5. Due to federal nature of government, the coordination at center and states level is
also lacking and in the case of any emergency, the response mechanism is not
effective. Here too NATGRID will be useful.
2. Criticism of NATGRID
1. NATGRID is facing opposition on charges of possible violations of privacy and
leakage of confidential personal information.
2. NATGRID will have access to all kinds of data under one roof and can also prove to
be counter-productive if misused.
3. Crucial intelligence information, if available to many agencies, can be leaked and
used against the nation.
4. No state agency or police force has access to its database thus reducing chances of
immediate, effective action.
5. NATGRID also faces issues like consolidating data from a huge population, lack of
compatibility with data sets in regional languages, risk of spies ratting out vital
information to outside sources and security from external attacks.

United Liberation Front of Western South East Asia

 1. UNLFW is a conglomerate of different insurgent groups active in the north-east region.
ULFA, NSCN-K, and NDFB have come together to launch a united opposition against the
Indian forces.
2. Implications of the front
1. There can be increased incidences of violence, like the Manipur ambush, hampering
development initiatives of government. A disturbed situation in the region is not good
for trade, commerce and development.
2. The negative image of the Northeast projected as a disturbed area will get further
accentuated as the region plunges into more violence and uncertainty. It can affect all
the initiatives involving north-east region such as the Act East Policy, the Multi-
mode transit project with Myanmar and cooperation with Bangladesh and South-East
Asia.
3. The return to arms by the insurgents will have a bearing on the security environment,
especially along the borders with Myanmar, and has the potential to derail India’s
security interests in the region.
4. The worry for security establishment is that the alliance partners of the UNLFW have
a presence across the expanse of the Northeast and the group is capable of striking in
all of these places making it difficult to respond for security forces.
3. Strategies
1. There is need of combining political decision making and intelligence acquisition
with operational capabilities of the Armed forces. The recent surgical strike to uproot
the insurgent bases across the border is welcome step to boost the morale of security
forces.
2. The recent attacks are fallout of the lukewarm response by government to renewal of
ceasefire agreements with various groups. Government must work on the ceasefire
agreements by roping in the trusted interlocutors.
3. Expediting the process of dialogue with the groups on board for permanent political
solution is necessary. Time bound results from discussion with groups ready for
peaceful solution will deny acceptance and support to the violent insurgent.
4. Expediting the development of infrastructure and connectivity to the North-east to
address the backwardness and sense of alienation.
5. Fast tracking initiatives centered on North-east region. Act east policy, cooperation
with Myanmar and Bangladesh to boost trade and commerce potential of the region.
6. Entrusting border security to specialized agency to counter any cross border
movement of arms and people.
4. Peace in the North-East region is critical in security and development aspirations of India
in South Asia and South-East Asia. Restoring peace and finding permanent solution is
essential for the success of these policies.

ICT and police

1. The graph of appropriation of ICT by the society in last two decades has been exponential.
Along with its benefits, ICT is also creating and evolving and diversified sphere of crime
in society. As India becomes more integrated with world a number of factors are operating
to make traditional way of policing obsolete.
 2. New forms like cybercrime, internationally funded terrorism, international crime
syndicates are emerging. Criminals are one step ahead of the police in making use of latest
technology in implementing their nefarious designs. This makes it necessary that the police
should also evolve to keep pace with the changing times. Some of the ICT tools that can be
incorporated into the police works are use of CCTV, RFID, electronic transport, e-
identification, online verification and fingerprint readers, GPS tracking, intelligent sensors
etc.
3. Tools
1. Providing the investigating officers with the tools, technology and information to
facilitate faster and more accurate investigation of crime and detection of criminals.
2. Online tracking of vulnerable as in case of radicalisation by ISIS.
3. Improving the police functioning in various other areas such as law and order,
curbing organized crimes, resource management etc.
4. Facilitating collection, storage, retrieval, analysis and transfer and sharing of data and
information among police station, district, state headquarters and other agencies.
4. Initiatives
1. NCRB is implementing Crime and Criminal Tracking Network and System, which is
a mission mode project under NeGP.
2. NATGRID, NCTC, CMS are some of the crucial initiatives.
3. Installations of CCTV and GPS trackers have been quite successful in online
monitoring.
4. Examples of initiatives like Aarakshi of Rajasthan and e-cops of Andhra Pradesh can
be adopted in other states too.
5. But to realise full potential of ICT in crime control some challenges like inadequate digital
infrastructure, lack of technical skills in personnel, daily evolving nature of crimes need to
be wiped away as in addition to traditional crimes like mob violence, civil disturbance,
terrorism, insurgency etc.

Nagaland
1. The Nagas believe that they were not part of India, whether through conquest or consent. The
Nationalist Socialist Council of Nagaland (NSCN) is a Naga nationalist group operating in
North-east India with an aim to establish a sovereign state known as Nagalim unifying all the
areas inhabited by the Naga people in Northeast India and Burma.
2. Internal security problem in Nagaland
1. Goal of Nagalim creation by unifying Naga inhabiting areas from parts of Manipur, Assam
and Arunachal Pradesh.
2. Presence of multiple insurgent groups like NSCN(IM) and NSCN(K). Though they signed
ceasefire agreements with Indian government, there are instances of ceasefire violations
particularly by NSCN(K).
3. Formation of parallel government and subsequent clashes with Indian Armed forces by
extremist groups like NSCN. Clashes among different tribal groups and factions.
4. Border issues with Assam resulting in frequent clashes and conflicts. This is hindering the
development of Nagaland.
5. Criminal networks operating through Nagaland like Drug trafficking and currency forfeiting,
etc. Presence of underground groups that deal in extortion, arms, drugs, smuggling etc.
3. Steps taken by Government
1. In 1947, Assam Governor signed a 9-point agreement which was almost immediately rejected
by Phizo.
2. The Naga Hills, a district of Assam, was upgraded to a state in 1963, by also adding the
Tuensang Tract that was then part of NEFA.
3. In 1964, a peace mission was formed, and got the government and NNC to sign an agreement
to suspend operations. But the NNC/NFG/NFA continued to indulge in violence and a massive
counter-insurgency operation launched.
4. The Government of India and Naga insurgent group NSCN(IM) signed a peace accord in
2016. However, this is only a framework agreement. The details of the accord are yet to be
fleshed out.
5. Deployment of Assam rifles to check insurgency in the state. Border management by fencing,
flood lights etc
6. Special category status to the state to strengthen state government and increase economic
development of the state.
4. The Naga issue can only be resolved by mutual deliberations between Govt and extremist
organisations present in the state.

Kashmir
1. Radicalisation and alienation of Kashmiri youth and citizen was perceptible in recent protests
in the wake of encounter of a Kashmiri terrorist.
2. The reasons for such radicalisation
1. Presence of military that pose checks on free movement, speech and expression, and other
economic activities on a daily basis.
2. Lack of communication with separatists. It opens void for radicalising elements from across
the borders.
3. Lack of good governance. The governments over the years have failed to deliver good,
participative, democratic, transparent and accountable governance.
4. Lack of grass root level democracy. Whereby the community can participate effectively in its
government, address its concerns and grievances and develop the way the need to be.
5. Lack of employment opportunities due to poor economic growth.
6. Pakistan is an active player in creating chaos in valley and it takes help of terrorist
organisation from time to time to raise such issues on international platform as well as provide
resources to separatist leaders, which encourage few handful people to advance their malafide
plans.
7. Disharmony among many segments of Kashmir society and segregation and segmentation is
another issue. Most of people are cynical to Kashmiri people, which alienated them.
8. Some segment of Indian media has sensationalised very incident of Kashmir and create a
environment of hatred against people of valley, and many times unrest is intensified by false
reporting.
3. How policies created alienation
1. Instrument of accession (IoA) did not give complete authority to the Indian state apart from
communication, defence and foreign affairs which sowed the seeds of alienation.
2. Giving special status to Kashmir in the form of Article 370 instead of merging it similarly to
other princely states have given away separate set of laws to the state.
3. Using force heavily to put down any social unrest have further led to the aggravation of the
problem as seen with the recent violence as an outcome of a youth with separatist tendencies.
4. India’s foreign policy with Pakistan on the lines of Kashmir have made feel the people of the
valley as pawns between the two powers.
5. Lack of governance and stable polity. Politicians use the public sentiment for their own benefit
instead of trying to find a solution.
6. Inability of the government to engage with the separatists who command support from certain
sections in a constructive manner.
4. What needs to be done
1. Tightening of security in the short term. Increasing communication during peaceful and even
other times, emphasis on good governance, accountability and grass root democracy by policy
makers in the state is required.
2. Schemes such as Udaan, Nai Manzil, etc are steps in the right direction in this regard.
3. Withdraw the Armed Forces Act from a number of civilian areas immediately. Hand over
primary responsibility for maintaining law and order to the state government and the J&K police.
4. Send an all parties delegation to J&K to meet with all sections of the people and listen to their
views. Keep the majoritarians out of the delegation.
5. Revisit the Standard Operating Procedures for deployment of the security forces, correct the
deviations and plug all loopholes.
5. But the situation in Kashmir was not always the same. It had a prosperous tourism industry
and the sense of alienation we witness now was not seen. The alienation started during 1980s
with the rise of terrorism from across the border which mandated the use of Armed forces.
6. The solution lies in economic and social inclusion of the Kashmiris in the fabric of the country
with digital, economic, infrastructure and other dividends reaching them like in the other parts of
the country. Schemes like UDAAN and Nai Manzil aims to achieve the same.