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Page 1: SYNOPSIS: INSIGHTS SECURE Q & A · Q) The ex-servicemen groups demanding unconditional OROP have resumed their protest at Delhi’s Jantar Mantar. What are the major concerns of veterans?

SYNOPSIS: INSIGHTS SECURE Q & A

N O V E M B E R 2 0 1 6

# www.insightsias.com

# www.insightsonindia.com

Page 2: SYNOPSIS: INSIGHTS SECURE Q & A · Q) The ex-servicemen groups demanding unconditional OROP have resumed their protest at Delhi’s Jantar Mantar. What are the major concerns of veterans?

GS – I I I Secure Synopsis | NOVEMBER - 2016

©www.InsightsIAS.com 1 ©www.InsightsonIndia.com

Table of Contents

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and

employment. ________________________________________________________________________________ 6

Q) Critically evaluate the impact of the Bankruptcy Act on various stakeholders. (200 Words) ______________ 6

Q) Should GST be growth-oriented or should it be revenue-neutral? Critically analyse. (200 Words) __________ 7

Q) In a significant judgment, recently the Supreme Court ruled that contract workers should get the same pay as

permanent workers. Critically discuss the likely consequences of this ruling. (200 Words) __________________ 8

Q) The ex-servicemen groups demanding unconditional OROP have resumed their protest at Delhi’s Jantar

Mantar. What are the major concerns of veterans? What is the major issue in implementation of OROP?

Critically examine. (200 Words) ________________________________________________________________ 8

Q) Recently an employment tribunal in London ruled that Uber drivers are “workers” and not “self-employed”,

and therefore entitled to a minimum wage and paid leave. What implications will this ruling have on various

stakeholders, including in India? Examine. (200 Words) _____________________________________________ 9

Q) “The cess on top of GST to be levied on luxury and sin goods is neither desirable nor efficient.” Examine why.

(200 Words) _______________________________________________________________________________ 9

Q) Odisha, despite having huge amount of natural resources and a stable government, continues to be one of

India’s poorest states. What should Odisha do to turnaround its key sectors and alleviate poverty faster?

Discuss. (200 Words) _______________________________________________________________________ 10

Q) As five hndred and thousand rupees have been scrapped which comprise of 80 percent of circulated money,

what options does individuals have to transact without cash? Examine. (200 Words) ____________________ 11

Q) “A three-tiered tax structure and multiple registrations mean that GST will change very little for industries.”

Comment. (200 Words) _____________________________________________________________________ 12

Q) It is said that number of rural consumers is on the rise in India. Examine the contributing factors and impact

of this rise on Indian economy. (200 Words) _____________________________________________________ 13

Q) Should the government bring Indian farmer under the income tax net? Critically comment. (200 Words) __ 14

Q) Critically analyse likely impact of demonetisation on parallel and main economy. (200 Words) __________ 15

Q) It is argued that the recent demonetization step has affected the poor most. In your opinion, what steps

government should have taken before demonetization? What steps should it take now to ease burden on the

poor? Discuss. (200 Words) __________________________________________________________________ 15

Q) Through demonetization, government, banks and RBI are getting too much cash in their coffers. In your

opinion, what should government do with the money it gets through demonetization? Discuss the issues and

challenges. (200 Words)_____________________________________________________________________ 16

Q) After recent demonetization step, it is found that the rich have found ways to launder their black money to

convert it into white, whereas the poor people are found standing in long queues to exchange their money

legally. What shortcuts are used by the rich to launder their money? Do you think, demonetization is unfairly

punishing the innocent people? Critically examine. (200 Words) _____________________________________ 17

Q) It is argued that the government will reap a windfall gain from its recent demonetization move. Do you

agree? Critically examine. (200 Words) ________________________________________________________ 18

Q) Critically analyse impact of demonetization on the unorganized sector. (200 Words) __________________ 19

Q) Does black money boost economic growth? Critically examine. (200 Words) _________________________ 19

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GS – I I I Secure Synopsis | NOVEMBER - 2016

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Q) It is consumption that has been driving Indian growth, rather than investment. Private investment has not

yet picked up. What needs to be done to improve private investment? Why is it important? Discuss. (200

Words) __________________________________________________________________________________ 20

Q) What hurdles exist in making India a cashless economy? Discuss benefits of becoming a cashless economy

and suggest how government can speed of this transformation. (200 Words) __________________________ 21

Q) It is widely expected that demonetization will bring long-term benefits. Will demonetization deliver benefits

that outweigh the short-term costs? Critically examine. (200 Words) _________________________________ 22

Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial

growth. ___________________________________________________________________________________ 23

Q) India’s share in world merchandise exports fell in each of the past two years, while that of China, Vietnam

and Bangladesh edged up. What are the reasons for declining manufacturing growth and exports in India?

Examine. (200 Words) ______________________________________________________________________ 23

Q) Recently, the union government issued the draft of first ever National Software Policy. Examine its

objectives. (200 Words) _____________________________________________________________________ 24

Topic: Government budgeting; Investment models _________________________________________________ 24

Q) Public-private cooperation and private -private cooperation have been taking place for long time, but

securing coordination between public-public agencies is said to be a difficult one. Why is it important to have

public – public coordination? Why is it difficult to secure? Examine. (200 Words) _______________________ 24

Topic: Land reforms __________________________________________________________________________ 25

Q) The union government has asked States to draft and pass their own laws for land acquisition and get them

approved by the Centre. Critically comment on this move. (200 Words) _______________________________ 25

Q) There have been arguments offered in the recent past claiming a dilution of the land acquisition law through

misuse of constitutional provisions. Are such changes to the land acquisition law warranted? Critically discuss.

(200 Words) ______________________________________________________________________________ 26

Topic: Agriculture – issues; issues relating to direct and indirect farm subsidies; _________________________ 27

Q) The potential of the agriculture sector to become a growth engine for India and food provider to the world

can definitely be achieved. How it can be achieved? Discuss. (200 Words) _____________________________ 27

Q) It is said that cultivation of pulses will address pollution problem. Examine how. (200 Words) ___________ 28

Q) Critically discuss imposrtance of Minimum Support Price (MSP) for Indian farmer. In recent days, India is

moving towards a regime where prices of agricultural produce would be decided by global demand and supply

equations. Is it good for Indian agriculture? Comment. (200 Words) __________________________________ 28

Topic: Economics of animal-rearing. ____________________________________________________________ 30

Q) In the light of ban on cow slaughter, evaluate performance of India’s buffalo meat industry and also examine

changing pattern in meat consumption in India. (200 Words) _______________________________________ 30

Topic: Cropping pattern; Marketing of agricultural produce and issues and related constraints; ____________ 30

Q) Maharashtra is the largest producer of sugar in India, contributing almost 37 per cent of the total national

output. Critically discuss recent problems in the sector in Maharashtra. Also analyse performance of private

sugar factories vis a vis sugar cooperatives in Maharashtra. (200 Words) ______________________________ 30

Q) India is pushing for palm cultivation in the northeastern states of Assam, Mizoram and Arunachal Pradesh to

increase production of oil, a commodity that costs the country millions in imports annually. Discuss ecological

and economic implications of this move. (200 Words) _____________________________________________ 31

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Topic: Issues of buffer stocks and food security ____________________________________________________ 32

Q) As of now, only five States have fully executed the National Food Security Act (NFSA), 2013 as per the

provisions of the Central Act. Do you agree with the view that it’s time for a full rollout of this Act to ensure

food security and enhance nutritional status? Discuss. (200 Words) __________________________________ 32

Topic: Infrastructure; _________________________________________________________________________ 33

Q) Discuss the likely impact of demonetisation on real estate sector. (200 Words) ______________________ 33

Q) Has the Indian Railway completely failed to ensure passenger safety in its operations? What needs to be

done urgently to improve railways safety? Critically examine. (200 Words) ____________________________ 33

Q) Critically analyse challenges faced by Indian railways in ensuring safety of passengers. It is siad that in

managing safety, the emphasis should be on reforming the system rather than firefighting. Do you agree?

Analyse. (200 Words) _______________________________________________________________________ 36

Q) It is argued that new high-end ultra-supercritical coal-fired power plant are more efficient than renewable

sources to generate energy, especially in India. Discuss the technology used in these new ultra-supercritical coal

plants and examine if they are more efficient and cost – effetcive compared to renewable sources. (200 Words)

________________________________________________________________________________________ 37

Topic: Science and Technology- developments and their applications and effects in everyday life ___________ 38

Q) Discuss the issues involved in political use of Artificial Intelligence. (200 Words) ______________________ 38

Q) Examine the technology involved in the Decision Review System. Why its use in the cricket was debated? Do

you think its use would benefit cricket? (200 Words) ______________________________________________ 38

Q) In 2015, a team led by Utpal Tatu, professor of biochemistry, IISc, completed the genotype sequencing

of Candida auris. Why genome sequencing of this species is significant? Examine. (200 Words) ____________ 39

Q) What are Yamanaka Genes? Discuss their significance and applications. (200 Words) __________________ 40

Topic: Issues relating to intellectual property rights; _______________________________________________ 41

Q) What do you understand by data exclusivity in pharma sector? Critically analyse how the recent proposal of

the government to change the four-year time limit for State-level drug regulatory approvals to 10 years would

affect various stakeholders. (200 Words) _______________________________________________________ 41

Topic: Achievements of Indians in science & technology; indigenization of technology and developing new

technology _________________________________________________________________________________ 42

Q) Recently it was reported that the Chinese advancements in space research could threaten NASA’s monopoly.

Do you think India has the potential to challenge China in space domain? Justify. (200 Words) _____________ 42

Topic: Indigenization of technology and developing new technology. __________________________________ 42

Q) Recently China unveiled J-20 stealth fighters. Should India be worried? What is the principle behind working

of stealth fighters? Examine. (200 Words) ______________________________________________________ 42

Q) Discuss how convergence of IT and defence industries in India is in their mutual interest as well as in the

national interest. (200 Words) ________________________________________________________________ 43

Topic: Environmental pollution; Conservation; Climate change. ______________________________________ 44

Q) The national capital and several other cities suffer crippling pollution in the post-monsoon and winter

months. Why? Also examine why government policies have failed to address this pollution problem. (200

Words) __________________________________________________________________________________ 44

Q) Discuss medium- to long-term approach, that are new and innovative, for pollution control in Indian cities.

(200 Words) ______________________________________________________________________________ 45

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Q) What are the objectives of the United Nations conference on climate change which is now under way in

Marrakech, Morocco? What’s India’s agenda in this Conference? Also discuss challenges the outcome of this

conference would face. (200 Words) ___________________________________________________________ 46

Q) Discuss the role of pharmaceutical companies in spreading of drug-resistant infections and efforts being

made to stop these infections. (200 Words) _____________________________________________________ 47

Q) Which important issues are at the top of India’s agenda at upcoming key global climate change conferences?

Discuss these issues. (200 Words) _____________________________________________________________ 47

Q) Do you think Forest Rights Act in its present form is one of the reasons why forests in India are fast

vanishing? Critically analyse. (200 Words) _______________________________________________________ 48

Q) Critically analyse the nature and focus of environmental activism in India today. (200 Words) ___________ 49

Q) Discuss the role of pharmaceutical companies in spreading of drug-resistant infections and efforts being

made to stop these infections. (200 Words) _____________________________________________________ 50

Q) What are the objectives of the United Nations conference on climate change which is now under way in

Marrakech, Morocco? What’s India’s agenda in this Conference? Also discuss challenges the outcome of this

conference would face. (200 Words) ___________________________________________________________ 51

Q) As the likelihood of climate disasters goes up, the need to mobilize additional finance to address the losses is

greater. What needs to be done to mobilize resources to address climate change effects? Discuss with special

focus on climate-resilient bonds. (200 Words) ___________________________________________________ 52

Q) Analyse the outcomes of recently concluded Marrakech climate conference. Do you think, the election of

Donald Trump as next US President, who has called climate change as hoax, would derail the climate change

deal? Comment. (200 Words) ________________________________________________________________ 53

Q) Critically discuss ecological impact of highways and railways projects passing through forests. (200 Words) 54

Topic: Prevention of money laundering __________________________________________________________ 54

Q) The union government has announced that five hundred and thousand rupee notes will cease to be legal

tender from today (9 Nov 2016). Critically discuss objectives and likely impact of this move on various sectors

and stakeholders. (300 Words) _______________________________________________________________ 54

Q) “Demonetisation of Rs.500 and Rs.1,000 notes has some benefits, but it cannot stem the flow of

unaccounted income to be generated in the future. Also its push to a cashless economy is premature.”

Discuss. (200 Words) _______________________________________________________________________ 56

Q) Post-demonetization, what challenges lie ahead for government to prevent flow of black money again into

the system? What measures should be taken once transition into new currency is over? Critically examine. (200

Words) __________________________________________________________________________________ 57

Topic: Linkages between development and spread of extremism. _____________________________________ 58

Q) Many in the government, including some among the security forces and the media, have claimed that recent

operation on Naxalites which killed 30 cadres marked the beginning of the end of the Naxalite movement in the

country. Do you think so? Critically comment on anti – Naxalite strategy. (200 Words) ___________________ 58

Q) Analyse the causes of weakening of Left Wing Extremism in India. (200 Words) ______________________ 59

Q) Do you think India is ready to go fully cashless today? Critically examine. (200 Words) _________________ 60

Topic: Linkages of organized crime with terrorism _________________________________________________ 61

Q) Discuss how would demonetization of Rs 500 and Rs 1000 notes impact terror financing. (200 Words) ____ 61

Topic: Security challenges and their management in border areas; ____________________________________ 61

Q) Critically analyse causes and consequences of recent ceasefire violations along LoC. (200 Words) ________ 61

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Q) How does Cross-border tensions between India and Pakistan affect the lives and livelihoods of civilians along

the border? What responsibilities does both countries have towards lives of these people? Critically discuss.

(200 Words) ______________________________________________________________________________ 62

Q) Because of demonetization, people in India are being forced to make digital payments. It is said that without

proper precautions and security policies, the highly reactive nature of cybersecurity leaves us vulnerable to

cyberattacks. Is it safe to utilise new payment platforms? How government and companies should mitigate

cyberattacks and minimise its damages arising out of this situation? Examine. (200 Words) _______________ 63

Topic: Various Security forces and agencies and their mandate _______________________________________ 64

Q) Critically analyse readiness and capability of the Indian Air Force (IAF) in securing India’s security interests.

(200 Words) ______________________________________________________________________________ 64

Q) “From a statecraft point of view, the IAF, with its flexibility and versatility, has varied options to offer

policymakers ranging from coercion, deterrence, signalling, extending influence and providing succour and

relief.” In the light of this statement, discuss what IAF can offer policymakers to strengthen nation’s security.

(200 Words) ______________________________________________________________________________ 65

Topic: Role of external state and non-state actors in creating challenges to internal security _______________ 65

Q) Do you think India should rethink its no-first-use nuclear doctrine? Critically discuss challenges and

consequences of such policy change. (200 Words) ________________________________________________ 65

Q) It is said that the current unrest in Kashmir is a “home-grown” popular uprising which cannot be blamed on

Pakistan or outsiders. Do you agree? What would be the consequences of continued clampdown on civil

liberties in the Valley for India? Critically comment. (200 Words) ____________________________________ 67

Page 7: SYNOPSIS: INSIGHTS SECURE Q & A · Q) The ex-servicemen groups demanding unconditional OROP have resumed their protest at Delhi’s Jantar Mantar. What are the major concerns of veterans?

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General Studies Paper III: Economy; Agriculture; S&T; Environment; DM; Security.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth,

development and employment.

Q) Critically evaluate the impact of the Bankruptcy Act on various stakeholders. (200

Words)

Livemint

The Bankrupty Act paved the way for much need reforms in the banking sector to handle the insolvency and

bankruptcy of corporate entities and individuals in India. The stakeholders involved here are

1) Banks

Pros

a) Mechanism to handle increasing stressed assets

b) Appointment of Insolvency Resolution professionals (IRP) who are specialized in handling sick

companies would be in place

c) Creation of Information utilities detailing about the lenders, defaulters would provide proactive

information to the banks

Cons

a) Challenge lies in maintaining the better relations between IRP and creditors and also lack of mechanism

in appointing IRPs questions the capability of IRPs in case of bankruptcy

2) Government

Pros

a) Free up bank’s productive resources and increase the credit availability in the economy, could be used for

welfare purposes

b) Promotes investment and entrepreneurship

c) Increase ease of doing business

d) Easy resolution of wilful defaulters and NPAs

Cons

a) No mechanism to handle cross-border insolvency, bilateral agreements would be time consuming

and also puts risk at handling different dynamic rules.

3) Business

Pros

1) Easy exit route

2) No overlapping of jurisdiction as in the existing system, dedicated agencies like Debt Recovery

Tribunal (DRT) and National Company Law Tribunal (NCLT)

Cons

1) DBT is already overburdened which would hamper the quality and also they are located only in state

headquarters which makes it time consuming for small cases

2) Hard dead line of 180/270 days - might push otherwise salvageable companies into liquidation

Employees

Pros

1) Worker salary protection

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GS – I I I Secure Synopsis | NOVEMBER - 2016

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Cons

1) Employment opportunities upon exit remains concern

Others

Pros

a) Judiciary - exclusion of overlapping reduce the burden on judicial system

b) Public - increase in availability of money enables easy credit to the common people.

Though there are certain defects in Bankruptcy code, addressing those with effective alternatives makes the

act more effective and efficient in handling bank crisis.

Q) Should GST be growth-oriented or should it be revenue-neutral? Critically analyse.

(200 Words)

Livemint

Good and Services Tax bill recently passed by almost all the state legislatures amends taxing powers of both

centre and state . This is a progressive step in not enabling simple taxation laws but also more compliance

would bring more growth . But the devil is in the detail .

Let`s analyse the twin objectives

GST as growth oriented:-

1. This measure assumes that GST would not only simplify taxation laws but also would prevent tax evasion.

Hence , bring more people in compliance of taxation laws .

2. Even lower taxes with higher percent of tax payers would bring increase in GDP and resources of

Government .Also more corporates would come to india there by increasing business , goodwill,

employement and foreign exchange

3. A Growth oriented GDP brings benefits to all sections of society since more revenue for government

would result in more money being spent in social welfare schemes .

4. This would also improve India`s image at global stand . India`s ease of doing business rank which is

current at 139th and we aim to bring it under 50 , growth oriented GST would huge step in this direction .

GST as revenue- neutral :-

1. Revenue Neutral GST is a totally different story . GST needed to be revenue neutral else it would increase

the CPI >> inflation .

2. For addressing state`s revenue loss concern a 5000 crore corpus has been kept and centre would pay the

loss of state for next 3 years .

3. For being revenue neutral – GST rates have to be in compliance with today`s tax rates which means 50%

items being tax exempted and others being taxed at 6 , 12 ,20 , 26% . Additional levy of certain cess and

duties such as National Disaster Calamtiy fund which would add 3 duties. This would make it more complex

towards 12 different rates.

In my opinion , Writing on the wall is clear and our main aim should be towards a growth

oriented GST rather than being revenue neutral which is a myopic approach . To achieve a

double digit growth and boost economy we need a growth oriented taxation system .

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Q) In a significant judgment, recently the Supreme Court ruled that contract workers

should get the same pay as permanent workers. Critically discuss the likely

consequences of this ruling. (200 Words)

The Hindu

A contract employee is one who is hired for a fixed job for a fixed pay and does not become a part of the

regular workers of that place. They are usually paid lesser wages in India and do not have facilities on par

with the permanent workers, thus leading to their exploitation. They are hired by the companies to

circumvent the complex labor laws.

The SC judgement comes in backdrop of this exploitation. The consequences of this ruling are:

>The verdict will ensure that contract workers are not exploited and get the same benefits as regular

workers.

>It may lead to reduction of hiring of contract workers in the long run.

>Companies may increase investment in training of contract labor.

>It will increase bargaining power of contract workers as compared to earlier.

>The judgment will serve as a signal to companies that they cannot circumvent laws to exploit labour.

Although there is cause for optimism, there are certain caveats also.

>The effects of this verdict will not be immediate because the contract workers do not have access to

"collective bargaining" i.e. they are not part of trade unions.

>The CL Act says that contract workers cannot be hired for core production. But the companies keep

circumventing this by showing that workers have been hired for non-core jobs like cleaning. But in reality

they may be working in the factory. There are no records to show which worker is working in which

department in the factories.

>With the presence of heavy REGULATORY CHOLESTEROL, companies may still resort to exploiting

contract labor.

Thus the need of the hour is to ensure stricter implementation of the CL act, improving collective

bargaining power of contract labor by promoting "contract labor unions" that consist of workers in a

particular area and to reduce regulatory cholesterol to ensure that companies do not keep resorting to

hiring contract labor.

Q) The ex-servicemen groups demanding unconditional OROP have resumed their

protest at Delhi’s Jantar Mantar. What are the major concerns of veterans? What is

the major issue in implementation of OROP? Critically examine. (200 Words)

The Hindu

With the 40 years of demand the OROP has finally come to the point of realization . There are still

some doubts needs to be clear.

The concerns of the veterans:

1.The scheme is not clear about the Premature retirement as Govt declared that OROP will not be

applicable for the person taking the voluntary retirement. However it is not clear whether this

provision is applicable for the future Premature retirement only or past.

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2.The Govt has still not provided the arrears to max persons as declared to be given after june 2014.

3.It will come as an obstacle for personnel going for better future prospect after voluntary retirement.

The scheme includes many issues also. Some of the issues are:

1.It will hit the budget expenditure of the Govt of India.

2.India in the current atmosphere including POK & Siachin issue needs to incentivize the defense jobs.

3.The stopping of Premature retirement may hinders the Govt objective of developing the young and

promotion seeking army.

4.The regulation of such a big scheme is also the concern.

India with the highest number of defense personnel in the UN Peace Keeping Forces is in the dire need

of benefits. The courage with which they fought ins such adverse conditions needs to be appreciated

with the technology, financial and emotional quotient. The OROP is a divine scheme for their plight

and the quick implementation with filling all the gaps after consideration is required.

Q) Recently an employment tribunal in London ruled that Uber drivers are “workers”

and not “self-employed”, and therefore entitled to a minimum wage and paid leave.

What implications will this ruling have on various stakeholders, including in India?

Examine. (200 Words)

The Hindu

Ruling of employment tribunal in London pointed out that Uber is not just a software providing

company it has more responsibility towards its workers. They should be considered as workers and

entitled to a minimal wage and paid leave. This decision will have following implications:

1. Effect on other similar companies: Companies working on similar concept of Uber and not providing

perks of permanent employees to their workers, will have to change their policies according to ruling.

2. Betterment of workers: This ruling will help workers to get better lifestyle.

3. Economic burden on Companies: Companies will have to pay more to their workers and in case of

leave they have to hire more workers, it will put economic burden on companies.

4. Inflation: Since these companies will have to pay more to their workers, they will start charging

more from their customers. So customers will have to incur this extra economic burden.

In India issues are different from UK, since minimum wage is very less and these workers are already

earning more than this. But in India workers don't have social security and companies don't have

transparent regarding their workers. After this decision companies will look into their policy and craft

policy accordingly.

Q) “The cess on top of GST to be levied on luxury and sin goods is neither desirable

nor efficient.” Examine why. (200 Words)

The Hindu GST Council decided to fix a four-tier rate structure for the Goods and Services Tax, the reform touted

to be the biggest after the economic liberalization of 1991.

A decision also has been taken to levy cess-tax embarked for a particular purpose- in order to raise

funds to compensate states for the revenue loses they will incur. The govt may need Rs 50000 cr in the

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first year for compensation. The cess to be applicable on luxury cars, tobacco, aerated drinks etc won't

be an additional levy, but an existing one and there won't be an additional burden. This cess would be

lapsable after 5 years.

A sin tax is specifically levied on certain goods deemed harmful to society, called demerit goods, for ex

alcohol and tobacco, soft drinks,fast food(Fat tax in Kerala) and gambling.

WHY THE CESS IS NOT DESIRABLE?

->Levy of Compensation Cess on certain luxury and sin goods in addition to tax takes GST a step

backward from true GST structure.Though for a period of 5 years, this will TRANSIT THE

COMPLEXITIES of existing tax regime to GST which could have been avoided.

->A CESS IS NOT SHARED WITH THE STATES,

->If its levy is not restricted to end-use products at the point of sale, it would further distort the

efficiency gains from GST as input credit for cess paid on intermediary goods is unlikely.

->if multiple rates are accepted by the GST Council, additional cess should not be made applicable as

this would lead to DISTORTION AND CASCADING EFFECT OF TAXES.

->With Swachh Bharat cess being imposed last year and Krishi Kalyan cess kicking in from this

financial year, revenue collection through cess and surcharge are expected to further swell this year.

This is expected to spoil the initial estimation of a lower GST regime.

->Subsuming a large number of cesses and surcharges into the Goods and Services Tax regime would

potentially lead to a TAX RATE MUCH HIGHER than initially anticipated.

Q) Odisha, despite having huge amount of natural resources and a stable government,

continues to be one of India’s poorest states. What should Odisha do to turnaround

its key sectors and alleviate poverty faster? Discuss. (200 Words)

The Indian Express Facts representing scant economic development of Odisha: -

1. Per capita income is fifth lowest in India, roughly 62% of India’s average.

2. Poverty is 6th highest in the country & 91% poverty in rural areas.

3. Extremely low Human Development Index.

Reason for Odisha’s failed economy:-

1. A long coast line which is prone to cyclones like natural disasters.

2. Terrain of Odisha makes it difficult for Industrial developments.

3. A higher green belt (33%) as compared to national average of only 24%, for which it comes under a

lot of scrutiny and red tapes for any environmental clearance.

4. Highly skewed demography. Nearly 62 tribal groups reside in Odisha, who have been socially and

economically backward & so are sometimes at times of developmental projects they become pawns of

politically biased leftist groups.

5. 30% of Odisha is under the influence of red corridors.

6. Land consolidation and land acquisition have been thwarting economic development since a long

time.

7. Inefficient populist schemes by state government & no political alternative making the entire system

to a downward spiraling society.

Scopes of improvement:-

1. As Odisha is highly exposed to Bay of Bengal, Developmental policies regarding a SUSTAINABLE

BLUE ECONOMY can improve its food security, sea trade, coastal tourism & also become a source of

renewable energy.

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2. Development can be encouraged via urbanization through efficient implementation of schemes like

PURA and RURBAN etc.

3. Unexplored and unprompted TOURIST DESTINATIONS have tremendous potential to provide a

boost the economy through proper initiatives.

4. High ground water reserves -> Better management of water resources w.r.t irrigation should be

provided.

5. High solar radiation can be channelized to provide alternative source of energy.

6. Improving the connectivity to remove the bottlenecks from an agrarian society.

7. Diversification of agricultural products and incentivizing and promoting rural economy.

8. Skill development and village linked tourism can push the economy and HDI to move ahead.

9. Policies to improve land acquisition and consolidation will have a positive impact.

10. Addressing the issues of Naxalites will bear positive results.

Facts in favor of Odisha: -

1. A stable government since March 2000.

2. Potential to have a second green revolution in India.

3. Gradual empowerment of SHGs are doing a lot of constructive activities w.r.t social-economic

development.

4. MAKE IN ODISHA initiative & including Bhubaneswar & Rourkela in the list of smart cities will

create economic developments.

5. With all the efficient management of natural resources & improvement in Human resources, this

state has a lot of potential to be the benchmark for others.

Q) As five hndred and thousand rupees have been scrapped which comprise of 80

percent of circulated money, what options does individuals have to transact without

cash? Examine. (200 Words)

Livemint

Background – The government has scrapped existing Rs500 and Rs 1,000 currency notes from midnight of 8 December. The move, is aimed at targeting black money and will also encourage and accelerate the move to a cashless economy. An individual has following options to transact without cash:-

Plastic money – Three types of cards available to use—credit, debit, and pre-paid — for all kind of transactions. All debit cards are issued by banks and are linked to a bank account. Credit cards are issued by banks and other entities approved by the reserve Bank of India. Prepaid cards are issued by the banks and non-banks against their value paid in advance. Prepaid cards issued by the banks can also be used to withdraw cash from an ATM, purchase of goods and services from a point of sale machine (the swipe machine used for card transactions), or online purchases.

Electronic fund transfer – There are three options available for such transfers: national electronic funds transfer (NEFT), real-time gross settlement (RTGS) and immediate payment service (IMPS).According to the RBI website, there is no maximum limit for NEFT money transfer. RTGS is for high value transactions—starting at Rs2 lakh. With IMPS the money gets transferred immediately and the service is available 24×7. The maximum amount possible to transfer through IMPS is Rs2 lakh.

E-Wallets – E-wallets are payment instruments where people can preload money and make payments. There are three types of wallets—closed, semi-closed and open. A closed wallet can be used to buy goods and services exclusively from the issuing company. Semi-closed wallets can be used to buy goods and services, including financial services, at select locations. Open wallets can be issued only by banks and can be used for purchase of goods and services, including at merchant locations or point of sale terminals that accept cards, and also for cash withdrawal at ATMs or business correspondents.

Unified payments interface (UPI) – UPI, launched by National Payments Council of India (NPCI) allows one-click, two-factor authentication on mobile phones across bank accounts. It is run on the IMPS platform which means transfers are immediate. To use this facility, people will have to download a UPI-enabled app on their Android smartphone. They also need to have a bank account and a registered mobile

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number. With these, they can create a virtual ID on the app or use IFSC code and bank account number to complete the transaction.

Cheque and Demand Draft: People facing difficulty in using Internet can reply upon the traditional cheque for transferring and withdrawal of cash. Similarly Demand draft can be issued for transfer of money.

However, all the above options are good and useful for a literate person. A person with poor digital literacy, above options are alien and it would lead to growth of a different level of intermediaries, who will provide services at some cost to such poor and illiterate people.

Though the digital literacy and financial literacy is penetrating to masses from all background, but a kind of insecurity about digital money, cyber threats, data theft has made it unpopular among masses who are not familiar with above methods.

So, government and service providers need to gain the trust of such people and need to educate / upgrade them to use the available platform. This also needs up gradation of infrastructure in remote areas to avail the benefits of above mentioned platforms. Though the move taken by the government can cause temporary inconvenience to the public but its positive impact in the long run should be appreciated.

Q) “A three-tiered tax structure and multiple registrations mean that GST will change

very little for industries.” Comment. (200 Words)

Livemint

Background – GST council has fixed four bands of tax rates at 5 percent, 12 percent, 18 percent and 28 percent. This apart, another category of tax between 40 percent and 65 percent will be imposed on luxury goods like high-end cars, pan masala, aerated drinks and tobacco products. Food grains will be zero-rated to insulate people from inflationary pressures. A decision has also been taken to levy a cess in order to raise funds to compensate states for the revenue losses they will incur. This along with multi-tier- State GST (SGST), Central GST (CGST) and Interstate GST i.e IGST will affect industries, which can be analysed in the backdrop of given points :-

Multiple registration– GST requires suppliers (sellers) to individually register in all states where they have operations and state wise multiple tax filings which is a cumbersome task. It will promote nepotism, red tapism, etc. affecting the productivity of industries and unnecessary harassment and causing more complexity.

Place of supply Provision– Classification of goods and services into “Interstate” or “Intra state” is complex especially in cases like online sales which may involve interstate transfers. While the goods will have a multiple rate structure, no clarity is provided on rates applicable to services.

Unnecessary burden on E-commerce firms- they not only have the onus of collecting the GST from the consumer on behalf of all the suppliers but also these firms as well as their suppliers have to register across all states where sale occurs. It will hinder the growth of innovative digital sector.

Rise of prices – extra burden of cess and exemptions will raise the price of the product and further makes it less competitive for Indian industries, in front of cheaper Chinese products. In addition, there are cesses on luxury and sin goods and exemptions too which enhance the complexity.

More frauds – multiple taxes on one object would lead to tax evasion, duplication of an invoice and other frauds.

Benefit to transportation/logistics sector- The GST panel report highlights a quarter of total travel time for road transport providers is spent at check-points (to pay inter-state taxes, central level taxes in form of excise, customs duty and CST, and then there are varying state level taxes in form of VAT and other levies like Octroi, state level cess etc.) and other official stoppages. Hence, most industries – like manufacturing/third party logistics players – generally have warehouses/offices in each state to reduce tax burden of Central Service Tax(CST).Thus, planning is more driven by logic of saving taxes, rather than achieving operational efficiency. This impact of inefficiency and cost burden is passed to end

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consumer, either in terms of quality or in terms of cost. Introduction of the GST and resultant elimination of state-specific taxation will lower barriers to trade.

Canadian dual tax structure are more advisable and easily for Indian federal structure .FICCI has suggested that given the robust automation backbone of the GST Network, centralised single registration be introduced for service companies (such as banking, telecom, insurance) which promote more innovative sectors as well. The GST is for great purpose and ease of doing business and thus it should be kept simple, lucid, and transparent as far as possible.

Q) It is said that number of rural consumers is on the rise in India. Examine the

contributing factors and impact of this rise on Indian economy. (200 Words)

Livemint

According to census 2011, approx. 68 % of population lives in rural areas, in this context, their consumption becomes very crucial for the domestic economy. Rural consumption is increasing due to factors like increase in wages, remittances, changing preferences, etc. which has caused more demand and thus more productivity in the economy having inflationary trend too.

Factors responsible of rise in rural consumption:-

Increase in wages – Government schemes like MGNREGA, NRLM, SHG, Rural entrepreneurship, skill development, better agricultural yield, corporate farming, etc have contributed to the increase in wages of rural population, causing more consumption.

More remittances – Migration of rural population to cities and other countries like – Gulf countries, USA, etc has caused more inflow of remittance to rural areas, thus more spending for increased consumption.

Availability, changing preferences and aspiration- Due to more integration through ICT, transportation, ware houses, cold storages, etc. the availability of choices of goods and services to rural population has increased, causing change in preference for food, private education, private health, etc with an aspiration for a better future. This is causing more consumption.

Role of government and NGOs- Government is focusing on improving the rural connectivity and delivery of quality services to rural population, providing credit to farmer, rural entrepreneur, etc. through Primary sector lending and microfinance. Also, the NGOs are helping in bridging the gap of development, for example – some NGOs work with tribals and teach them how to use natural resources, others employ local rural talent to create products and help them boost their incomes. Thus, they are contributing towards more rural consumption.

Impact of the rise on economy:-

Better productivity for industries – more demand will increase production in industries leading to increase In India’s GDP.

Inflationary trend –more money in hand will increase demand for goods and in turn their prices will increase. Along with this, supply side bottlenecks will cause inflationary trend in the economy.

More investment in rural areas – With more consumption in rural areas, government starts investing in rural infrastructure to attract MNCs, private players, etc. This generates gainful opportunities for employment to rural people. It also helps in reducing regional disparity with more inclusiveness. It will reduce distress migrationfrom rural to urban areas.

Stress on resources – More consumption causes stress on the scarce resources like Land, water, etc. This leads to tensions, farmer suicides, inter-state disputes like- Cauvery river dispute between Karnataka and Tamil Nadu.

Cushion to global shock- Amid global slowdown, the domestic demand driven growth has saved India in the past. Domestic consumption acts like a cushion.

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Faster, more inclusive and sustainable development was the target of Twelfth five year plan, which is crucial for improving rural consumption. In the background of SDG, INDC targets, India needs to monitor the rising rural consumption, it should be sustainable.

Q) Should the government bring Indian farmer under the income tax net? Critically

comment. (200 Words)

Livemint

Nearly 54.5 % of population is engaged in agriculture. Section 10 of the Income Tax Act does not include agricultural income and also no states impose tax on farmers in India. Given the dependence of large proportion of population on agriculture for livelihood and also the falling farmer incomes due to climate extremities, taxing farmers has become an emotive subject

Positive implications of bringing farmers under tax net:

Access to formal credit: at present, farmers maintain no records about their revenue. This has made it difficult to assess the creditworthiness of farmers by the banks, due to which banks are reluctant to lend loans to farmers for fear of NPAs. Bringing them under tax net will mean they maintain authentic records of their farm incomes which can be assessed by banks to disburse loans. This reduces farmer’s dependence on informal moneylenders who often charge exorbitant interest rates

Tackling black money: as farm income is exempt from taxation, many farmers are showing their non-farm incomes as farm incomes to avoid taxation. This leads to generation of black money. Recently, government has decided to scrutinize cash deposits of farmers and cross check if this is in line with their land holdings and the corresponding yields. If there is huge discrepancy, the additional income is taxed.

Augmenting revenue: taxing rich farmers will not be regressive. Also, government will get additional revenue which can be used for welfare expenditure or capital formation.

Negative implications:-

Exacerbates farmer distress: at a time when crop failures have become the norm and farmer income falling, taxing farm income will go against government’s aim to double farmers’ income by 2022. distress may lead to more suicides among farmers.

Selective credit disbursal: now that banks can assess the creditworthiness of farmers by their tax return, banks may resort to favouring rich farmers for providing credit. This deprives small and marginal farmers of formal credit access.

Anxiety: as farmers have never filed formal tax returns before, it may give rise to anxiety among them. Also, as they are unaware of the procedure of filing tax returns, they may be harassed by intermediaries or even government officials.

States’ opposition: agriculture being a state subject, states may oppose taxing agriculture incomes fearing displeasing the electorate.

Administrative costs: even when farm income is taxed, the revenue generated may not be very high given that farm income levels are low. The cost of collecting tax may be higher than the amount realised from the collection

Suppress rural demand: as farmers will have less disposable income after meeting tax payments.

Loss of livelihood: many farmers may abandon cultivation and search for informal sector jobs as they feel taxation as a burden and drain on their income.

Thus, considering the negative implications, instead of taxing agriculture income, only the non-farm income can be taxed. The money generated can be channelled into a fund which is utilised for improving productivity of agriculture and thereby ensuring doubling of farmer income.

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Q) Critically analyse likely impact of demonetisation on parallel and main economy.

(200 Words)

The Hindu

The recent demonetization of Rs 500 and Rs 1000 denomination currency notes one of the initiatives of the government to put a check on parallel economy. The impact this move would bring to parallel economy are:

It will reduce unaccounted money - This will reduce the value of the wealth accumulated by the tax evaders and counterfeiters, thereby sucking the unaccounted money from the economy.

Check on illegal activities- The move puts a check on illegal activities like Hawala transactions, terror financing, human trafficking, drug trafficking, arms trade, corruption, etc. which have been threat to security of the nation directly or indirectly.

The impact of demonetization on the main Economy:

Liquidity crisis and deflation - It has caused a short term liquidity crisis (crunch) in the economy leading to deflation due to lack of demand for goods and services .Gradually, it will improve.

Level playing field- The prevalence of white money or accounted money in the economy would create a level playing field for the people. For instance exorbitant prices in the real estate sector would come down, earlier which was powered by black money.

Economic growth - It is being said that in short run, it will lower the economic growth because black money was acting as impetus to economic growth. Sudden crunch of money will make sectors like real estate suffer and thus the economic growth. But in long run, the GDP growth will get the boost.

Tax collection will increase - It is expected that, this move will push for cashless transaction, which will help in better accounting, thus better tax collection.

Thus, though the demonetization drive has a short-term negative impact on the main economy, also causing difficulties to the general public, in the long run, it is a potential tool to flush out black money from the economy, thereby strengthening the economy.

Q) It is argued that the recent demonetization step has affected the poor most. In your

opinion, what steps government should have taken before demonetization? What

steps should it take now to ease burden on the poor? Discuss. (200 Words)

The Hindu

Demonetisation of ₹500 and ₹1000 notes have stripped them off their legal power and thus 86% of the currency power that is presently flowing in the economy is artificially destroyed. It has put the rural and the urban poor in a limbo. Inadequate number of banks and ATM in rural areas have put them into distress as they have to travel to faraway places to exchange their money. Also, in rural areas, digital currency is unheard of and physical currency is their only option. Most of the urban poor constitute daily wage employees and standing in queue's to exchange their currency at the banks and ATM means a no wage day. Thus, it has affected their job, food, wedding, etc. farmers don’t have money for sowing crops, which is making poor more vulnerable.

Steps the government should have taken before demonetisation:-

Adequate amount of lower denomination currency -The adequate amount of Currency notes with lower denomination should have been printed and released in the ATMs to avoid the crunch. Present demonetization has created a gap of 14 lakh crore in the money market.

Gradual introduction of new currencies - The Government should have printed Rs 500 currency notes with new security features rather than printing Rs 2000 in large numbers making it non-exchangeable due to shortage of currency with lower denominations.

Updated ATM software - The Software used in the ATMs across India should have been updated prior that can dispense new currency notes which are different in dimensions.

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Provision of toll free numbers - Places where old currency notes are to be used such as petrol pumps, hospitals are shying away from their duty. So a toll free helpline number should have been provided for registering the complaint.

More awareness - Adequate provisions should have been made to dispense information and make people aware about the demonetization, its likely impact on the first day of the rollout. It has created a panic situation now.

Steps that the government can presently take to ease the burden on the poor

Provision for withdrawing cash in remote areas - Adequate number of mobile ATM should be deployed in the villages and awareness should be created for its use.

Provision for compensating daily wage labourers- Daily wage labourer's should be compensated for losing their job due to demonetization or loosing job day due to exchange of currency.

Extend the acceptance window - The acceptance of old Rs 500 and Rs 1000 notes should be extended to another date especially in Ration shops, hospitals, electricity bills, water bills, etc.

Giving preference to poor people - The Government should allow the bankers to give preference to the people possessing BPL (Below Poverty Line) cards for exchanging old currency notes with new currency notes, so that their immediate needs are fulfilled.

Accelerate the printing of new currency - The Government should increase the printing of Rs 500 notes in large amount compared to Rs 2000 to void the physical and mental stress faced by the common man especially the poor.

Strengthen the information network- using mass media and internet penetration, provisions should be made for improving information outreach even to remote areas to avoid panic situation.

The move is a good step to curb black economy. Need is to address the logistic challenges as quickly as possible without affecting the life of the common man.

Q) Through demonetization, government, banks and RBI are getting too much cash in

their coffers. In your opinion, what should government do with the money it gets

through demonetization? Discuss the issues and challenges. (200 Words)

Livemint

The big questions rise after the demonetization of high valued currency notes on the usage of money by government, RBI and banks. A strong, well-articulated roadmap should be prepared by the government on its utilization.

Government can use the money in following ways:-

Welfare schemes - Government can use it to expand outlays in health related schemes, subsidising higher education and improving the outreach of services for vulnerable sections of society. For example- widows, transgender, senior citizens, tribals, etc.

Banks – It can be used to recapitalise banks to reduce their stressed assets (NPA). Banks can reduce the interest rates on loans so that they can generate multiplier effect with the money getting deposited in their branches.

Employment – government can use this money to further promote its skill development initiatives. Also, by improving the capacity of PSUs, government can create more avenues for employment.

Regional disparity – Government can use this money to invest in North eastern regions, BIMARU states for addressing the present regional disparities in various development indicators.

Upgrading capacity of renewable energy - It will help in reducing the initial investment associated with renewable energy which in turn will help in meeting the INDC targets.

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Investing in infrastructure projects - Government can use this money to recharge NIIF (National investment and infrastructure fund) and to finance PPP projects through Hybrid Annuity Model through which infrastructure projects with long gestation periods could be financed.

Improving fiscal health - Government can use this money to reduce its fiscal deficit, so that it can come in the comfortable limit, provided under FRBM act. Government can also use this money to reduce its debt burden.

RBI can use it to target inflation- The deflationary impacts of demonetization would give RBI a golden chance to remain in the 4 +/- 2% range of inflation, as per the new role under MPC (Monetary Policy Committee).

Issues and challenges involved:-

Liquidity crunch - Too much of deposits means less liquidity. The authorities need to strike a balance between the two. Short term deflationary trend prevailing due to lack of hard currency in the economy might lead to recession.

Logistic challenge - In the short term it will be a logistical nightmare to manage the cash replacement in banks and smooth functioning of the banking system.

Legal obligation - All currency notes carry a legal obligation, as the “RBI has guaranteed that it will pay the bearer the sum or the value of the denomination that is printed on that note.” However, since the government has not used the term demonetization, the question that arises is whether RBI still holds an obligation or not.

Deterring investment - can pose a negative image of the country for attracting foreign investment. However subsequent 2 years might see sharp “hockey stick” revival in growth.

Prevention of black money again - This will surely help in curbing black money in present scenario, but it will require a lot of effort to check hoarding, counterfeiting, hawala transaction, etc. because the use of higher denomination currency in the economy would still be there. Also, this move would not solve the problem of unaccounted money that are parked in Tax havens abroad.

This is definitely a huge boost to governments and RBI's accounts but it also adds a huge responsibility on these authorities. Having money does not mean that government should not worry about private investment or FDI. Also, too much spending on government procedures or subsidies should also be kept in check.

Q) After recent demonetization step, it is found that the rich have found ways to

launder their black money to convert it into white, whereas the poor people are found

standing in long queues to exchange their money legally. What shortcuts are used by

the rich to launder their money? Do you think, demonetization is unfairly punishing

the innocent people? Critically examine. (200 Words)

The Hindu

The move of demonetization by the government of India though a novel step, it has raised varied question on future black money, impact to economy and more importantly inconvenience underwent by the poor people. It has been found that rich people are using various shortcuts to launder their black, as discusses below:-

Spurt in deposits Jan Dhan Accounts: 24 % of Jan Dhan accounts have been zero balance. However, after demonetization, there has been spurt in deposits in Jan Dhan accounts. It is believed that these deposits may be black income being distributed among many agents. Thus demonetization is said to have led to emergence of "benami deposits".

Rising gold sales: in spite of more than 80 % of currency in circulation no longer being a legal tender, back dated gold sales has been rising.

Voter bribery: reports about political parties in Tamil Nadu distributing old notes to their workers before a by-election to come. It is believed that in Uttar Pradesh, where elections are due in 2017, money could similarly be distributed, in the form of advance payment.

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Frenzied shopping: On November 8 itself, there had been frenzied late-night shopping till midnight especially in the upmarket malls. This indicates that some sections of the populace had money hoarded from unaccounted activity and wanted to get rid of it while it was still legal tender

Pre-dated fixed deposits: cooperative banks and credit societies have seen a rise in opening of pre-dated fixed deposit accounts through nepotism

Booking and cancelling railway and air tickets: booking is done now with Rs 500 and rs 1000 notes. After some days, when tickets are cancelled, money is got back in the form of new loans

Interest free loans: being given to poor people.

Advance payments: many rich people are paying their servants/maids advance salaries (even up to 9 months) in Rs 500 and Rs 1000 notes.

Farm incomes: as farm incomes are out of the tax net, there has been a recent spurt in non-farm incomes of farmers.

Demonetisation of ₹500 and ₹1000 notes have stripped them off their legal power and thus 86% of the currency power that is presently flowing in the economy is artificially destroyed. It has put the rural and the urban poor in a limbo. Inadequate number of banks and ATM in rural areas have put them into distress as they have to travel to faraway places to exchange their money. Also, in rural areas, digital currency is unheard of and physical currency is their only option. Most of the urban poor constitute daily wage employees and standing in queue's to exchange their currency at the banks and ATM means a no wage day. Thus, it has affected their job, food, wedding arrangements, etc. farmers don’t have money for sowing crops, which is making poor more vulnerable.

However, in the short run this move has caused panic, mental stress and it may lower the morale of citizens due to the inconvenience caused. But in long run, it will contribute towards happiness of the citizens. It will make the authorities accountable, who were earlier engaged in corruption and overall transparency in the economy will also improve. It is move to provide justice to all those people who faced the brunt of corruption and black economy.

Q) It is argued that the government will reap a windfall gain from its recent

demonetization move. Do you agree? Critically examine. (200 Words)

Livemint

Demonetization is being seen to give windfall gain to government through unaccounted liability on RBI part and other benefits in the economy as mentioned bellow :-

More Seigniorage - Un-exchanged black money by the hoarders reduces liabilities to the RBI to pay back the promised value, this added money to the seigniorage gives RBI extra surplus to pay government.

Tax revenue - Government has put some limit to deposit and exchange of old currencies. Beyond which it will taxed, penalties will be imposed, thus tax earned through and improved tax collection in future, will improve governments tax revenue.

Bank capitalization - Banks are getting lot of money deposited into their bank account increasing the savings, which can be used for lending. So, in future they will reduce their losses caused by NPA in recent times.

Inflation- With this, the black money will go out of the system and the money supply will shrink to some degree. This will reduce inflation rate in the absence of any open market interventions by the Reserve Bank of India.

However, there are apprehensions, about the above mentioned benefits, because, Seignorage which is being seen as windfall gain, is paid to the government by the RBI depending upon its income. Income for RBI might not change drastically as it does not depend on the liabilities that RBI holds but on the cash inflow. RBIs cash inflow mainly consists of the interest yielding bonds -both foreign and domestic .Thus, demonetization might not impact the cash inflow drastically. It only changes the RBI’s balance sheet. It is just an increase and decrease of liabilities section in the balance sheet before and after seignorage payment.

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Also, the black market for gold and investments in real-estate are still going on where people are continuing to invest black money and thereby reducing the actual tax that the person is obliged to pay and the penalty. Thus, it will not improve government earning through tax and penalty.

Q) Critically analyse impact of demonetization on the unorganized sector. (200

Words)

The Indian Express

Background - Ever since the announcement of demonetization, the income of unorganized sector workers has come down drastically — by up to 60 per cent.

Unorganized sector accounts for more than 90% of workforce thus demonetizations worsens the situation for them

Dwindling customers and work- Due to money crunch, there is very slow liquidity of cash flow in the economy. It has affected both customers and the service/ goods providers, affecting the whole business cycle.

Payment option is not available - Vendors (vegetable and other street vendors) hardly have the option of using electronic devices to get payments. Thus hitting their business drastically.

Growth of middle men- At some places, the mafia has brought in touts who are exchanging the Rs 500 and Rs1,000 notes for vendors against a five per cent commission leading to their exploitation.

Daily wage hit hard- Most of the transactions in this sector happens through cash, some even daily wages. Sudden liquidity crunch hit both employers and employers on merchandise and wages respectively. Also, daily wagers lose jobs due to standing in bank queues.

Impact on agriculture - No cash has made for farmers impossible to carry on buying products for next cycle of selling as they are not able to buy seeds, fertilizers for Rabi cycle.

Poor financial and digital literacy- Most of the employers and employees in the unorganized sector are illiterate; they are not tech-savvy and may not be completely aware of banking procedures. Also many unorganized jobs are in rural areas gives them less access to banks and ATMs, thus cumulatively making the situation worse for them.

Government has taken measures to reduce this impact by giving permission to farmers to withdraw up to 25,000rs a week. Agri-traders registered with marketing committees can withdraw up to 50,000rs. Extension in payment of crop insurance premium has been done. To ease flow, withdrawal of money at selected petrol pumps has been allowed.

However, it will act as an incentive for the people to get into the formal economy and reap its many benefits. The infusion of cash into the formal system can be used by the government to augment the welfare programmes for the marginalised sections which are majorly concentrated in the unorganized sector. It is also a rare window for the government to promote a cashless economy, by promoting point of sales devices to the smallest street vendors to big shop owners.

Even though there is a negative effect on unorganized sector, however positive results could be squeezed out if proper measures are taken by the government and the individual entities of unorganized sector.

Q) Does black money boost economic growth? Critically examine. (200 Words)

Livemint

Black money is the unaccounted money generated by illegal dealings in organized crimes. It is argued that black money boosts the economic growth as discussed below:-

Boost in short run - Black money gives short term boost to economic growth through employment generation, investments, etc. But in long run it is not desirable and collapses the economy.

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Shield against global economic shocks- Black money helps in building a defensive wall against a global economic crisis. For example, in the year 2008, India was immune to the economic catastrophe brought in the banking sector. It was due to reserve unaccounted money which was later brought into the market for investment by the private firm, thus it protected Indian economy against recession.

Sector specific growth - Black money is known to play a major role in sectors such as real estate. Steps like -demonetization, taken to check black money would lead to reduced activity in the sector and hence adversely affect employment generation in the construction sector, which has been a major employment generating sector in recent times.

But, the boost provided by black money is the temporary one and in long run it affects the whole economy as discussed below:-

Policy paralysis and loss to exchequer - Corruption produces bad decisions; concern over corruption produces indecision. It causes policy paralysis as an outcome of unholy nexus between politicians and business groups, especially in sectors such as natural resource extraction and infrastructure at a substantial loss of revenue to the exchequer, which could be used for augmenting economic growth. Ex- Coalgate and 2G scam

Rise in NPA and reduction in lending capacity- Loans to industries with corruption problems have infected largely to the state-run banking system raising their non-performing assets (NPAs) adversely affecting its profitability, and reducing its lending potential. It has affected the vital road and power projects leaving countries resources idle in mines.

No rise in tax-GDP ratio - Even though black money boosts economy in short run, but despite high economic growth, India’s tax: GDP ratio has not shown a commensurate increase in past (Tax evasion) and, in fact, has become more regressive due to a rise in share of indirect taxes causing higher incidence of tax on the poor and consequently eroding mass demand.

Black money at best can act as a catalyst which gives temporary boost to economic growth. But, prolonged dependence on it can leave damaging effects on a nation and its people.

Q) It is consumption that has been driving Indian growth, rather than investment.

Private investment has not yet picked up. What needs to be done to improve private

investment? Why is it important? Discuss. (200 Words)

Livemint

As there are very limited prospects of external economic environment, it becomes necessary to have a

robust internal investment in terms of both private and public investment to have 7.5% (IMF) of economic

growth. While public investment is growing but private investment is stagnating.

The following can be done to boost the private investment:

1. Passing of insolvency and bankruptcy code: to increase the entry and exit of companies from

financial markets. Hence, more companies would be willing to invest in India.

2. Single window of clearance: Easy process of clearing documents to do business in India. Ex. Recent

move of Ease of doing business in India.

3. Increasing bank credit growth to industries: measure such as better transition of repo rate to

customer would increase the private investment.

4. Asset restructuring and recapitalization of banks: NPAs are dragging the investment down in the

economy which needs to be controlled. Moves such as assets restructuring and recapitalizing the banks are

steps in right direction

5. Increasing FDI flow: Reducing barriers in FDI in flow s to increasing the long term capital formation

in India which would provide sustainable economic growth.

6. Government initiatives: such as Gold monetization, sovereign gold bond, small investment

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schemes would increase private investments.

7. Increasing non-banking financial companies and providing incentives to start-ups etc. :

Importance of Private investment:

1. Large investment would create sustainable capital formation that would create employment and good

prospects of life.

2. Private investment brings requisite skills which would provide sustainability to economic growth.

3. It provides benefits to large number of people as the benefits of investment would be distributed in large

number. Hence it provides lesser inequality and more inclusive economic development.

As world economies are slowing down, there are few prospects of growth of exports to take place. Public

investment can sustain the economy for a very short period of time. Hence, it becomes imperative to

strengthen private investment which would bring more financial inclusion, lesser inequality, higher overall

development of all people and the much needed sustainable and efficient economic growth.

Q) What hurdles exist in making India a cashless economy? Discuss benefits of

becoming a cashless economy and suggest how government can speed of this

transformation. (200 Words)

Livemint

The recent demonetization is among a series of steps like JAM that are aimed at moving India towards

RBI's vision of a cashless economy.

What hurdles exist?

(i) Although mobile penetration is high, smartphone penetration is still low which is an important

component for digital transactions.

(ii) Debit card and Credit card penetration is still low at around 750 million. PoS devices are limited

in number.

(iii) The level of digital literacy in our country is low.

(iv) The payment interface i.e. UPI is still at a nascent stage which cannot handle large volumes of

transactions.

(v) Lack of internet connectivity especially in rural areas.

(vi) The lack of proper cybersecurity framework is a big constraint because without this, we cannot

have a sustained digital economy.

Benefit of becoming a cashless economy

(i) It will reduce cost of printing notes and maintaining ATMs, branches of banks . The cost

savings of running a cashless economy are stated to be around 0.25% of GDP.

(ii) It will reduce black money as majority transactions will be traceable.

(iii) It will ensure targeted delivery of schemes like subsidies to people and reduce leakages.

How can government speed up this transformation?

(i) Increase rural internet connectivity through schemes like JAM, NOFN.

(ii) Hold discussions with experts to set up a proper cybersecurity framework and infrastructure.

(iii) Government should impose limit on cash holdings to push people towards using digitized

transactions.

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Government has been trying to promote cashless transactions by giving RuPaY cards with Jan dhan

accounts, JAM, NOFN, setting up UPI. These steps along with building necessary infrastructure will help in

smooth transition to a cashless economy.

Q) It is widely expected that demonetization will bring long-term benefits. Will

demonetization deliver benefits that outweigh the short-term costs? Critically

examine. (200 Words)

The Hindu

The sudden decision of demonetization by the government has caused short term problems but in long run it will help in curbing terrorism, black money generation, hoarding, etc. by blocking illegal access to Indian rupees. It will help in checking corruption, real estate prices, and gold prices and thus will benefit poor and middle class people too.

Long term benefits:-

Fake currencies will become valueless - Large amount of fake Indian currency notes, which were printed in Pakistan as per the Intelligence Bureau report would become valueless as they cannot be used further. Till now, these fake currencies were used for financing terrorist groups, originating in Pakistan.

Check to Hawala transaction - Terror funds were channelized through illegal hawala transaction, operating underground. Demonetisation has put check to the flow of money through such transaction, chocking one of the major financial source of the terror groups.

Blow to corruption - Demonetization, is a good step in this direction, which is being forced from government side itself, reflecting the political will to end corruption. It will raise the cost of illegal transactions. In corruption, suppose bribe taking, people involved will facilitate cash with bigger denomination, because it is easy to carry. So, here demonetization of bigger notes in short run will check such easy and big illegal transaction.

Tax evasion will be checked - Till now, in real estate the circle rates and selling price of the land / flat doesn't match. Sellers used to lower the value of property to avoid stamp duty. And to avoid taxes, they used to accept some percentage of money in case and other percentage legally through check/ online transfer. This was helpful for tax evasion and investing black/illegal money into the asset. The current demonetisation will make it extremely difficult for any buyer to pay in cash.

Bring down the prices of real estate - It will hard for buyers to arrange cash and the seller will also not accept such money. To improve demand and due to competition the prices will automatically come down. It would be beneficial to the organised construction sector, according to the Confederation of Real Estate Developers’ Association of India (CREDAI). Developers would be able to pass the benefit to the customers and along with it, banks may lower the interest rates of home loans.

Cleanse poll-funding - All those political parties, who were involved in bribing the voters by giving cash have got a blow. This move is a step towards bringing transparency in poll-funding, as the donations could be monitored and also the spending by political parties. It will help in choosing political representative on the basis of his work rather than how much he bribes to voters. Thus this move is good for political democracy

Protects the honest people- All those people who used to earn honestly and save their money, now they will get better return of their money, as the black money will weed out due to this move. Black money was causing inflationary trend in the economy, lowering the value of money for honest and poor people. For example- The prices of houses and land in real estate sector will be rationalised.

But, in short term it has caused many problems. It has put the rural and the urban poor in a limbo. Inadequate number of banks and ATM in rural areas have put them into distress as they have to travel to faraway places to exchange their money. Also, in rural areas, digital currency is unheard of and physical currency is their only option. Most of the urban poor constitute daily wage employees and standing in queue's to exchange their currency at the banks and ATM means a no wage day. Thus, it has affected their job, food, wedding,

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farmers don’t have money for sowing crops, etc- this way it is making poor people more vulnerable. It will also lower the investment and growth in the economy in short term.

The move is a good step to curb black economy and in long term it will definitely outweigh the short-term costs. Need is to address the logistic challenges as quickly as possible without affecting the life of the common man.

Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on

industrial growth.

Q) India’s share in world merchandise exports fell in each of the past two years, while

that of China, Vietnam and Bangladesh edged up. What are the reasons for declining

manufacturing growth and exports in India? Examine. (200 Words)

Livemint

In the aftermath of global economic crisis in 2008, exports of almost all the countries have fell down, and so have India's. However, of late, even the share of India's exports in global trade has also started reducing while that of China, Vietnam and Bangladesh is increasing. China's exports are propped up steel dumping, subsidies etc. Bangladesh enjoys low tariff barriers (LDC status), low labour cost. Vietnam has increased its exports by stressing on education. India, neither has the advantage in terms of tariff barriers nor has highly educated population. Apart from this, other reasons include:

Global economy - Cyclic factors like global slowdown of 2008 and decrease in price of crude oil related products for which India's highest export product played important role in reducing export market for India.

Preferential treatment to emerging economies - Both Vietnam and Bangladesh enjoy the benefit of favourable market access policies and relatively lower labour cost compared with India. For ready-made garments, Bangladesh enjoys duty-free access to the European Union under the Generalized Scheme of Preferences. Due to this cost advantage, Bangladesh’s share in the EU’s imports almost doubled from 9% in 2009 to 17% in 2015 India does not have any such advantage.

Education/skill - On the other side, Vietnam seems to be following in the footsteps of East Asian economies by maintaining focus on increasing education standards of its citizens. Vietnam’s adult literacy rate reached 94.5% in 2015 compared with India’s 72.2%. Continued focus on education will help attract foreign investment and also help the economy overcome the challenges of automation in the manufacturing sector.

Complexity of laws: Stringent laws related to land, labour, environmental clearance, etc. along with poor infrastructure are also some of the constraints.

Policy paralysis - Inefficiency of political parties and bureaucracy to solve problems due to strong union, corruption, red tapism, security issues, bureaucratic inertia, etc have caused policy paralysis.

Purchasing power- Lack of effective purchasing power due to price stability, less financial inclusion, gender inequality, jobless growth etc. are not letting the domestic market to grow, thus restricting the manufacturing.

However, the potential of the domestic market can only be realized if there is improvement in purchasing power. Unlike exports, which are determined exogenously, domestic demand is primarily dependent on domestic income. Improved purchasing power need not be achieved by merely subsidizing the poor, but also by empowering them to participate in the growth process. Financial inclusion, education, fair property rights, and price stability are all catalysts to equitable growth.

What we need is effective policy to counter structural problems to solve problems related to law, governance, purchasing power focusing on technology development, innovation and International cooperation to increase our competitiveness and adaptive power.

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Q) Recently, the union government issued the draft of first ever National Software

Policy. Examine its objectives. (200 Words)

Livemint

India software sector is progressing and is in the race of top software economies of the world,the recent

National Software Policy draft issued by the government to give it further impetus.

OBJECTIVES

1. To create direct and indirect employment for 3.5 mn people from this sector by 2025.

2. To increase share of indian software products in the global market estimated at about $148 bn.

3. To become a market maker, and to buy more software products than software projects,

4. To enhance inclusion of software products in government procurement.

5. To promote their usage in strategic sectors like defense,railways,space ,atomic power,health care etc.

6. To curb problems relating to the taxation of the software products and proper 'Definition' for software

products in order to differentiate from S/w services.

6.To boost Start Up initiatives in the IT sector to fulfill the ambition of MAKE IN INDIA SCHEME.

Further, to use software into government procurements, defence sectors, agriculture etc will be a good

booster to the indigenously developed software products and services.

THIS would improve india's status of software goods and products provider which till now is dominated

largely by software services that india provides globally.

The draft seems in accordance to leverage START-UP-INDIA to create condusive environment for start-ups

thereby infusing new jobs.

THIS draft seems to be in line with DIGITAL INDIA concept and also an incentive for MAKE FOR INDIA

concept.

Topic: Government budgeting; Investment models

Q) Public-private cooperation and private -private cooperation have been taking place

for long time, but securing coordination between public-public agencies is said to be

a difficult one. Why is it important to have public – public coordination? Why is it

difficult to secure? Examine. (200 Words)

Livemint Government has been increasingly encouraging PPP projects since a long time and few of such projects

include the Golden Quadrilateral, 60% of PPP projects involve road building; ports development.

Private- Private Cooperation has been in place. Examples - Maruti- Suzuki or the reecent partnership

for domestic defense manufacturing.

Why Public- Public Coordination Becomes Difficult:

No proper communication between ministries; at times, works by them lead to duplication of efforts.

There is no proper coordination.

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Ministries act according to different laws. For example Home ministry regulates foreign funds under

FCRA but the International donors to the NGOs are registered under FEMA which is regulated by the

FinMin.

Most of the ministries lack general experts. Holistic administrative plans involving more ministries

become difficult.

Each minister wants be remembered for a long time. Thus their self interest takes precedence over the

national interest. For example, Tourism ministry while planning for development of tourism doesn’t

take Min of Roads and Highways on board.

Why is it important:

* To reduce bureaucratic delays-Faster implementation of projects.

* Better Coordination- Taking different ministries on board. For example, Ministry of Mines and Min

of Environment can get into partnership.

*Duplication of Efforts- This leads to loss of time and money. Coordination and better partnership

would address that.

Public-Public partnership is extremely important to address the arising problems of our country. A

regular meeting up of all ministries should be welcomed and ministries must work collectively with

coordination for the better good of our country

Topic: Land reforms

Q) The union government has asked States to draft and pass their own laws for land

acquisition and get them approved by the Centre. Critically comment on this move.

(200 Words)

The Hindu India, being an emerging economy, industrialisation and consequent development depends primarily

on one of the main factors of production ‘Land’. Acquisition of land by industries in a prompt manner

increases the employment opportunities. The process and procedures of land acquisition has been

covered under Land Acquisition, Rehabilitation and Resettlement Act, 2013. Land acquisition, being a

concurrent subject, recent move by the centre to allow states to frame their own land act and get it

approved by President raised discussions and concerns.

Positive aspects of the move

1) Gives due respect to all states affirming cooperative federalism

2) It goes along in line Article 254(2), which permits states to override central law upon presidential

assent

3) It would reduce conflicts between states and centre on land acquisition and hasten the process of

land acquisition by the industries

Negative aspects of the move

1) Lack of uniform law makes the international projects to systemic challenges when handling projects

in multiple states

2) No guarantee if the states would incorporate safeguards provides in the central act – social audit

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assessment, rehabilitation and resettlement, right to consent

3) Lack of effective approval system upon states’s submission of bill to President, where President

mainly plays a passive role on the advice of cabinet

The move has both positive and negative effects equally, however ill effects could be removed

by ensuring the active scrutinization by the President upon approval and the Supreme court should

also play an effective role to ensure social justice as the approval is subjected to judicial review.

Q) There have been arguments offered in the recent past claiming a dilution of the

land acquisition law through misuse of constitutional provisions. Are such changes to

the land acquisition law warranted? Critically discuss. (200 Words)

The Hindu

Land acquisition remains the biggest hurdle in attracting investment, building infrastructure and fast-tracking developmental projects. The Central government has encouraged States to frame their own land acquisition laws by amending the LARR Act or Land Acquisition Act. Under Article 254 of the Constitution, these will be valid if they receive Presidential assent.

Why using this provision is contentious?

Misuse of provision - Provisions of Article 254 meant be used in case genuine problems exist for a state in implementing Central Laws and not simply because they are inconvenient. Also, the latest Singur case displayed the possible misuse of the act by the state.

Undermining the authority of Parliament - The State government can amend the provisions of the Act and send it to presidential assent thereby bypassing the legislating authority of the Parliament as empowered to it through the concurrent List by the constitution.

Dilution of certain provisions- Certain Provisions like those related to the Consent Clause, Social Impact Assessment requirement and Right to eminent domain, are in danger of being modified for partisan interests by the states, thus reducing the effectiveness of the LARR Act.

However, using this provision is justified because:

State specific needs - Different states have undergone different levels of development in the past decades. Their development requires necessitate differences in land acquisition laws. A single fixed LARR Act is not applicable to developed states like Tamil Nadu compared to Uttar Pradesh which has different sets of issues.

Right to go to court - The affected parties (for eg from land has been acquired forcefully) always have the right to go to courts and seek redressal in case of forcible acquisition. Any apprehension about misuse by states is unwarranted because with an Independent Judiciary in place and the recent verdict by the Supreme Court on Singur Land acquisition deal by TATA clearly sends a message that, no amendments to the LARR Act can be made, which is unfavourable to the interests of the farmers and poor people of this country.

India stands at the cross-roads of development. While it upholds rights of all sections, it also needs to lift millions out of poverty. Thus, both State and Centre must use every possible legal solution to enable to achieve the goal of development.

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Topic: Agriculture – issues; issues relating to direct and indirect farm subsidies;

Q) The potential of the agriculture sector to become a growth engine for India and

food provider to the world can definitely be achieved. How it can be achieved? Discuss.

(200 Words)

Livemint

India has largest arable land acreage and also comparative advantage of cheaper production. This can

be leveraged along with following measures to become growth engine and food provider to the world:

i. Productivity – of our farmers is much below global average. They must be provided with good variety

of seeds, irrigation projects must be completed and crop pertinent to local climate must be chosen.

ii. Value addition – Only 6% of our food is processed. There must be values addition to remove hidden

hunger. Food processing industry (FPI) must be given boost.

iii. Extension services – On use of fertilizers, soil health, veterinary services, crop varieties, Dryland

farming etc must be provided.

iv. Technology –

Sensors to monitor soil, weather and crop conditions, Hydrology survey, pest management, precision

farming etc

Animal biometric collars

Kisan Suvidha App, SmartAgri, ‘AgriMarket’ etc

v. Problem of small land holding - must be solved by cooperative farming or land consolidation

facilitated by contract farming, feeding to FPI and improvement in supply chain.

vi. Government support –

Massive awareness campaign for best agricultural practices

Popularizing Indian cuisine

Setting up of Mega food park, food processing industries, APMC markets, removing middle men,

land bank, waste land development etc

Rationalization of subsidies for sustainable development; Credit availability for micro irrigation

projects etc

vii. Start-ups – must take more initiative in agriculture to help in export and accelerate the growth of

the sector.

Indian agriculture is under-utilized. There is huge potential to tap. Hence with proper policy

formulation agriculture can be made driver of high growth.

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Q) It is said that cultivation of pulses will address pollution problem. Examine how.

(200 Words)

The Indian Express

Agriculture contributes to land, water and air pollution through eutrophication, land degradation, methane and carbon emissions from paddy fields and tilling. Excessive use of fertilizer, pesticides also pollute the ground water and though bioaccumulation and magnification affect the food chain, thus pollute the human health. As recognised by Subramanium committee Pulses (pigeon pea) production has a potential to reduce pollution through agriculture as:-

Green manure- Pigeon pea’s straw, unlike paddy straw, is green and can be ploughed back into the soil. In paddy straw, the problem is the high silica content, which does not allow for easy decomposition. Farmers, therefore, choose to burn it, which releases black carbon as particulate matter and causes pollution in non-source region too. For example, straw burning in Punjab and Haryana in recent past has caused pollution issues in NCR region.

Soil enrichment – Pulses enrich soil with nitrogen so lesser fertilizers will be required unlike paddy which depletes soil of essential nutrients and issues of fertilizers run-off polluting soil & water will be tackled (eutrophication).Also, leaching of fertilizer to ground water can also be checked. It will also help in land reclamation which have been degraded due to continuous cropping and use of fertilizers.

Less use of water – Pulses are less water intensive in comparison to paddy, where we practise flood irrigation, causing release of methane from paddy filed, which is a major GHG. It will also reduce power subsidy bill to farmers and in turn pollution from thermal power plants will reduce. Indirectly, there would be less requirement of extracting water from ground water, which will check groundwater depletion and pollution due to excessive extractive (Arsenic pollution)

However there are many challenges, MSP is highly skewed towards wheat, rice and there is no incentive to grow pulses, Isopam (integrated scheme for oilseeds production and pulses) scheme has not been able to enhance pulses production according to its target. Experts say stubble burning is not the sole reason for increasing pollution. Hence pulse production can help to a limited extent..

The need is to diversify MSP to support pulses, incentivise sustainable organic farming, and implement existing laws with stake holding states besides other necessary measures to check air pollution. Scientific methods for utilisation of straw from paddy fields and diverting them towards power generation. Pulses can be grown in the areas where paddy is currently grown but the concerned authorities must focus a lot on changing the mindset of the farmers and ensuring a safe market for the alternative crop.

Q) Critically discuss imposrtance of Minimum Support Price (MSP) for Indian farmer.

In recent days, India is moving towards a regime where prices of agricultural produce

would be decided by global demand and supply equations. Is it good for Indian

agriculture? Comment. (200 Words)

Livemint

Through Minimum Support Price (MSP ), the prices are fixed by the government before the sowing season of the crop to protect the farmers from distress sales and it is the price at which government purchases crops from farmers whatever may be the price of the crops in the market.

As of now MSP is recommended for 24 crops under 5 group’s viz. Kharif Crops, Ragi crops, Sugarcane, raw jute and copra. For sugarcane instead of MSP, ‘fair and remunerative price’ is declared. It depends upon recovery percentage which varies from state to state. For other crops one MSP is declared for whole India

MSP is an important part of India’s agriculture price policy, which has following positive impact:-

Protects farmers against market fluctuations- minimum prices ensured for the crops protects the agricultural prices, farmers from market fluctuations.

Economic assurance - guarantee of a buyer while cultivation of crops and safeguarding their future. Hence, provides an economic assurance and security for the farmers.

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Food security - Large scale procurement at MSP helps the government in catering the requirements of food security which is targeted by government through schemes like MDM, Aaganwadi, NFSA, etc.

Weeds out the middle man - With farmers having adequate knowledge and guaranteed procurement, the role of middles men weakens.

Boosts production - It motivates farmers to grow targeted crops and thus helps in achieving the targets of agriculture production.

Criticism against MSP :-

Distorted Production - Recent trends by NSSO indicates shift in pattern of food consumption from cereals to protein rich foods, but no such remarkable shift is seen in sowing or production patterns. For e.g. India is largest producer and consumer of pulses in the world, but still 25 % of the pulses consumed are imported.

Huge Stocks- This resulted in ‘Open ended procurement’ which means government can’t decide quantity it wants to buy. How much ever grains are offered by farmers to gov. has to purchase. So now government has huge stocks which are almost double the requirements for Buffer stock, PDS and Other government schemes such as Midday Meal Scheme.

Out of control Inflation- As we have seen initially MSP and procurement prices were kept lower in relation to Market Prices. So lower the market prices, even lower were MSP and procurement prices. Situation now is that Market prices are dictated by MSP which remains most of the time higher. This brings market prices at least on par with MSP. Facts by surveys and analysts suggests an obvious directly proportional link between hike in MSPs and food Inflation.

Backwardness in Agriculture - Any industry grows when it adapts to a competitive environment. If farmers get market signals from the market about upcoming trends of demands of consumers, total supply in economy, new technologies, export opportunities or import vulnerabilities, they will find out more profitable crops, technologies and will keenly adapt. Present system creates glut in market of particular crops. It leads to intensive farming year after year, which degrades soil. Farmers rely on political pressure to remedy their problems, instead of adapting to market. This all keeps private investment away for the sector and thus contributes to backwardness in agriculture.

Environmental harm - It degrades the soil because of irrespective of the soil condition, some crops are preferred which have MSP over them which results in exploitation of group water resources, alkanity, decrease in the production of the crops in long run and much harm to environment.

MSP is based on economic criteria such as demand and supply situation, trends in domestic and international market prices, cost of production, inter-crop price parity, terms of trade between agriculture and non-agriculture sectors, trade policy in agriculture, effect on general price level, and so on. It should be noted that ‘cost of production’ is just one of the factors taken into account and is not a sole factor.

Importance of MSP has been reduced in the recent past because, due to lack of procurement centres, many farmers are selling their crop at lower prices than the MSP thereby negating the whole concept of this support price policy. Farmers engaged in dry-land agriculture are already deprived of all state support in the form of subsidies for water, electricity and fertilizers. This is because in the absence of irrigation facilities, fertilizer use is limited and electricity for pumping is irrelevant. For these farmers, crop insurance and floor price set by MSPs are the only support available

Global determination on agricultural produce price, results in higher exports of market demand crops, contribute to increased farmer's income and security in case of forward markets. It would help farmers to take up advanced technologies to increase their production to meet the requirements.

But on the contrary, it can also be detrimental, when the prices are low compared to the amount that is required for producing it, thus making it prone to global fluctuations.Small farmers in countries like India cannot withstand such fluctuations. This is precisely the reason why the World Trade Organization’s (WTO) Agreement on Agriculture allows government intervention in the market through MSPs.

Way forward - Support should be Crop Neutral as has been recommended by many experts on the topic. If all farmers get same monetary support despite of crops produced, then they are better placed to diversify their crops as per demands of the market. This can be done by changeover to Income support from MSP.

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Farmers should get support at the time of distressed market prices. First preference of farmers should be to sell in market at the price which should be higher than MSP.

Topic: Economics of animal-rearing.

Q) In the light of ban on cow slaughter, evaluate performance of India’s buffalo meat

industry and also examine changing pattern in meat consumption in India. (200

Words)

Livemint The Hindu

The recent ban on the cow slaughter implemented by certain states in India have made the cattle

owners to look for alternatives to balance their profit and business by shifting to the buffalo meat

industry .

The performance of the Buffalo meat industry is evaluated as follows :

1) India is a home to one of the largest population of cattle and the India's buffalo meat Industry have

got a upthrust in the last few years due to the Ban on cow slaughter and a shortage of cow meat

automatically making the people to look for the next alternative in the form of Buffalo meat .

2) Indian Buffalo meat have also found its way to south east Asian countries in the last 5 years due to

the demand for it in the middle class population of those countries for its the lower price.

The changing pattern of meat consumption in India is elucidated :

1) There is a shift in the pattern of consumption from cow meat to buffalo meat ,which is mainly due to

the ban and prevailing threat on consumption of it by fringe groups .

2) The Northern states of India consume less amount of meat compared to the states in north-east

Indian and south India .It is mainly due to the cultural reasons attached with it on the consumption of

the meat.

Looking at the statistics on meat consumption released by NSSO( National sample survey

organization) ,we can conclude that, despite bans and threats , the meat Industry is helping the cattle

owners to earn better income and improve their standards of living.

Topic: Cropping pattern; Marketing of agricultural produce and issues and related constraints;

Q) Maharashtra is the largest producer of sugar in India, contributing almost 37 per

cent of the total national output. Critically discuss recent problems in the sector in

Maharashtra. Also analyse performance of private sugar factories vis a vis sugar

cooperatives in Maharashtra. (200 Words)

The Hindu

Sugarcane, one of the thirstiest crop in India, plays a major role in the livelihood of farmers mainly

Maharashtra due to larger exports. Issues such as FRP vs SAP pricing, Sugar mills vs farms on pricing

every year aggravated by other reasons resulting in decline in production of sugarcane this year.

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Recent problems are

1) Dropping of Bhargava formula – which provides a part of the profits of mills to farmers as incentives

during declined production

2) No Levy sugar – This quota is maintained to provide guaranteed revenue upon selling a fixed quota

of sugarcane to farmers. Though this has been abolished in 2013, the problem got worsened this year

3) Minimum distance criteria – reduction of this criteria gives les options to sugar cane mills to

procure from farmers

4) Drought- Two year continuous drought minimized sugar acreage and in turn production

Cooperative vs Private sugar mills

1) Management– High Logistics and Transportation cost and low recovery rate by private have a direct

link to FRP provided to farmers. However, cooperative sugar mills maintained constant farm income to

large shareholding members

2) Credit – Due to less borrowing power, cooperatives are liquidated, giving rise to more private firms

Way forward

Need of the hour is to revitalise the cooperative sugar mills in Maharastra by providing easy access to

credit, management, efficient involvement of all stakeholders, considering the recommendations of C.

Rangarajan committee resulting in better recovery rate and farm income to farmers.

Q) India is pushing for palm cultivation in the northeastern states of Assam, Mizoram

and Arunachal Pradesh to increase production of oil, a commodity that costs the

country millions in imports annually. Discuss ecological and economic implications

of this move. (200 Words)

Down to Earth

India is pushing for palm cultivation in the northeastern states of Assam, Mizoram and Arunachal

Pradesh to increase production of oil, a commodity that costs the country millions in imports annually.

Discuss ecological and economic implications of this move.

India is the largest importer and consumer of edible oil so in order to secure vegetable oil security and

reduce its import dependency, India is opting for large-scale production of palm oil in North East areas

.Palm oil is the cheapest vegetable oil with very high productivity and multiple uses as in cosmetic

industry, biofuel, lubricant but it's not without environmental cost.

ECOLOGICAL IMPLICATIONS:

1. FOREST REMOVAL: Palm oil being a plantation crop based on monoculture cultivation will result

into removal of primary forests as well as irreversible damage to rich Biodiversity of the area .

2. WATER POLLUTION: chemical inputs required for its cultivation will penetrate down into the

groundwater .

3. NATURAL CYCLE. : practice of monoculture will affect CROSS POLLINATION and natural cycle le

of regeneration

ECONOMIC IMPLICATIONS:

1. TOURISM INDUSTRY: loss of forests will result into loss of biodiversity and specially Birds when

Arunachal Pradesh is international destination for birdwatchers.

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2. CAPITAL INTENSIVE: Palm oil production requires large amount of inputs in the form of chemicals

and hyv seeds .

3. CURRENT ACCOUNT DEFICIT: It will help in reducing import expenditure and generation of

employment opportunities.

Palm oil production is a necessity for achieving Edible oil security so after doing cost benefit analysis

government should move ahead with the plans of expansion in the region's that are not displaced at the

of Biodiversity and socio economic cost.

Topic: Issues of buffer stocks and food security

Q) As of now, only five States have fully executed the National Food Security Act

(NFSA), 2013 as per the provisions of the Central Act. Do you agree with the view that

it’s time for a full rollout of this Act to ensure food security and enhance nutritional

status? Discuss. (200 Words)

The Hindu

The CACP has held the NFSA to be the biggest ever experiment in the world for the supply of food

following a “Rights based approach”. So far over 11 states have implemented the act fully or partially.

We have had the issue of inequalities to be addressed amid the economic growth we have shown. In the

wake of that, the NFSA offers the following:

a. Hunger: It addresses the basic food requirement of a majority of people. India’s GHI rank of 2oth

among leading countries with hunger is alarming.

b. Encouragement: with mid day meal schemes, parents are coming forward to send their wards to

school as they don't need worry about their food. Children of poor who were before nod fed properly,

thus, their nutritional need get addressed.

c. Fiscal Prudence: The act calls for digitization of ration cards- false entries get eliminated and extra

cost incurred is reduced. Leakages are addressed. Money saved is used in subsidising food during

inflation making food accessible.

d. Maternal benefit and ICDS: these provisions in the act help us in improving IMR and MMR.

However, the issue of malnutrition is not yet addressed properly, the NFSA need to have a greater

variety in its basket like milk , eggs etc to address the protein requirement of people. NFSA would

certainly help us to address the nutritional need of our poor. Thus, state governments should

implement their respective acts with better adoption of ICT, improvement in storage facility, proper

administration of FPS etc. With proper synergy between the executive and bureaucracy, NFSA can

become a success.

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Topic: Infrastructure;

Q) Discuss the likely impact of demonetisation on real estate sector. (200 Words)

The Indian Express

The Hindu

Background – A white paper on ‘black money’ by the Finance Ministry in 2012 stated that the real-estate sector in India constitutes almost 11 per cent of the GDP. A recent report by Ambit Capital said India’s ‘black economy’ stands at over Rs 30 lakh crore or about 20 per cent of the total GDP. If the ministry’s 2012 assessment holds true today, then real-estate accounts for more than 50 per cent of the current black money market. In this context, the recent move of demonetization would impact real estate sector in following ways:-

Tax evasion will be checked – Till now, in real estate the circle rates and selling price of the land / flat never matched. Sellers used to lower the value of property on paper to avoid stamp duty. And to avoid taxes, they used to accept some percentage of money in cash and other percentage legally through check/ online transfer. This was helpful for tax evasion and investing black/illegal money into the asset. The current demonetisation will make it extremely difficult for any buyer to pay in cash.

Bring down the prices – It will be hard for buyers to arrange cash and the seller will also not accept such money in cash. To improve demand and due to competition, the prices will automatically come down. It would be beneficial to the organised construction sector, according to the Confederation of Real Estate Developers’ Association of India (CREDAI). Developers would be able to pass the benefit to the customers and along with it, banks may lower the interest rates of home loans.

Will impact secondary market – Secondary market in real estate involves re-sale of the property, where much of cash rich investors come into the picture. So, demonetization will affect such dealers and investors rather than entry-level housing targeted by first-time home-buyers.

Projects may get delayed – As per ASSOCHAM’s report, last year, over 75 per cent of the 3,540 real-estate projects, with investments worth over Rs 14 lakh crore, across the country were non-starters. The study also revealed that in Punjab, a majority of the real-estate projects were delayed by more than 36-40 months on an average. Demonetization will further create investment crunch, delaying the projects.

Land brokers will be affected – Most of the dealers are involved in re-sale and their commission over each sale further raises the cost of the property. Demonetization will affect such dealers as it will affect resale and since the flow of cash is going to reduce, their commission will be affected, which was unaccounted legally. Gradually, this move would shift the dealing through banking channels that would weed out “middlemen” and “brokers”, who used to put the customers at ransom by raising the price of the property to exorbitant rates.

Demonetization move would result in a clean-up of the real estate sector. The demonetisation, coupled with the passing of the Real Estate Regulatory Act, REITs, Benami Transactions (Prohibition) Amendment Act, 2016, would weed out the black money from the real estate sector. The money that was rotating had slowed and with this demonetisation, things will only slow down further. Prices are expected to fall by at least 30 to 40 percent in the coming days, as per the analysts.

Q) Has the Indian Railway completely failed to ensure passenger safety in its

operations? What needs to be done urgently to improve railways safety? Critically

examine. (200 Words)

The Hindu

Background - Indian railway is one of the largest mode of transport in the world carrying more than 7 billion passengers per year. The Railway Ministry, has recorded an average of 50 derailments a year over the past four years, with a peak of 63. Internal investigations by the Commissioners of Railway Safety have found human error to be responsible for 70 per cent of serious rail accidents, which underscores the importance of training and adherence to strict operational discipline.

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Saying that Indian railway has completely failed to ensure passenger's safety in its operation would be wrong because of the following steps taken by Indian railways:-

Safety Action Plans are continually executed to reduce accidents caused by human errors.

Periodical safety audits by multidisciplinary teams of Zonal Railways as well as inter-railway safety audits are being conducted on regular basis. During 2011-12, 80 internal safety audits and 30 inter-railway safety audits were carried out.

Anti-Collision Device (ACD) developed by Konkan Railway Corporation Limited (KRCL) has been provided as a pilot project on 1,736 route kilometres of Northeast Frontier Railway. Trials with modified ACD, with improved efficacy, reliability and availability, were carried out on electrified multiple-line and automatic signalling section of Southern Railway. Complex operational and technical issues are being observed and resolved for further, proliferation of ACD.

Train Protection Warning System (TPWS) to prevent over speeding/Signal Passing at Danger (SPAD) is in use since May 2008 on few routes and for other trials is going on.

Vigilance Control Device (VCD) is a system where if the driver does not perform a certain set of actions over a period of time, sound alarms, flashing light and brake systems start operating automatically. On-board VCD has been provided on all 6000-Horse Power electric locomotives, 265 conventional tap changer electric locomotives and 2,342 diesel locomotives. It has been decided to install this device on the remaining electric and diesel locomotives in a phased manner.

Block Proving Axle Counters (BPAC) - In order to enhance safety by automatic verification of complete arrival of train, BPAC is being provided at stations having centralized operation of points and signals.

Self-Propelled Ultrasonic Rail Testing (SPURT) Cars are being used for Rail flaw detection and electronic monitoring of track geometry is carried out to detect defects and plan maintenance.

Patrolling - Based on threat perceptions due to adverse weather conditions or external interference, patrolling of railway tracks including night patrolling as well as intensified patrolling during foggy weather is carried out at vulnerable locations regularly.

Safety at Unmanned Level Crossing- Publicity campaigns are periodically launched through different media like quickies on television, cinema slides, SMSs, posters, radio, newspapers, street plays, etc.

Fire safety - in running trains, a pilot project for provision of Comprehensive Fire and Smoke Detection System has been taken up Rajdhani Express, which would be replicated to others too. Otherwise Guard-cum-Brake Van, AC coaches and Pantry Cars in all trains are provided with portable fire extinguishers to cater for emergencies due to fire accidents. Also, improved materials for electrical fittings and fixtures such as MCB, light fittings, terminal boards, connectors, etc., are being used progressively to avoid fires in railway coaches.

However, the scale of above mentioned safety measures is yet to cover the whole operations of Indian railways due to crunch of financial resources, corruption, bureaucratic delays and populist measures taken by ministers.

What needs to be done to improve railway safety?

Independent safety Authority - In the present situation, the three vital functions (rulemaking, operations and the regulation) are all vested in the Railway Board. There is need for an independent mechanism for safety regulation. The Anil Kakodkar Committee recommends, the creation of a statutory Railway Safety Authority with enough powers to have a safety oversight on the operational mode of Railways.

Research Design and Standards Organization (RDSO), the apex technical wing of the Railways, is highly constrained. This has hampered the ability of the system to internalize emerging technologies. The Kakodkar Commitee recommends restructuring of RDSO for greater empowerment. It also recommends that a Railway Research and Development Council (RRDC) be set up directly under the government.

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Financial investment needed - The Kakodkar Committee concluded that with constant pressure on finances, maintenance of infrastructure has been hit. The financial state of Indian Railways is ‘at the brink of collapse’ unless some concrete measures are taken.

Train coaches- According to Anil Kakodkar Committee recommendation, the outdated Integral Factory Coaches (ICF) should be replaced by Linke Hoffman Busche(LHB) coaches as these do not override the coaches in case of a collision.

Signalling system - According to Kakodkar comitee recommendation, an advanced signalling mechanism as adopted in Europe should be adopted as 16% of the accidents take place at rail crossing and 1% due to rail collision.

Cooperation from states - State governments must bear responsibility for the safety and monitoring of the physical terrain through which trains run, and be prepared to handle disasters. Also, accident victims must have access to medical facilities. But, prolonged neglect of the public health system in most States offers little hope that things can be turned around quickly. Thus states should come forward to assist the central government at these fronts.

Innovation through PPP – As railways being crucial component of infrastructure not only as means of carrying passengers but also in carrying goods (freight). The Public-Private-Partnership model should be brought to bring new innovation and designs to renovate railway.

Track Modernization – The old track design and poor maintenance are also one of the reasons of frequent train accidents. According to Khanna rail safety review committee report, 25% of the tracks have perished its life. Ultrasound flaw detection machines should be used to identify the tracks and immediate replacement of these tracks should be done.

Use of technology - Early Warning System and real time monitoring can be done with the help of GAGAN and BHUVAN - satellite based services. For example - NHAI is to utilize ‘GAGAN’ and ‘BHUVAN’ satellite systems to prepare a 360-degree mapping of all national highways for future safety and maintenance.

In the past also, government has been appointing committees like - Sam Pitroda committee in railway modernization in 2012, which recommended on dedicated freight corridor, GSM- based mobile train control commination system, etc. Bibek Debroy committee was constituted for “Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board", which recommended for - Independent regulator, shift to standard commercial accounting, streamline recruitment and HR process, private sector should be allowed into running both freight and passenger trains in competition with Indian railways. Private participation should also be allowed in various Railway infrastructure services and non-core activities like production and construction; merging of railway budget with general budget, etc. But, most of the recommendations have not been implemented till date, due to which Indian railway is continuing to face the problems.

However government is also taking steps like - zero accident mission, Kayakalp council under Ratan Tata to transform the state-run rail network and promote innovation in railway has been established, FDI in railway infrastructure development has been allowed, which are welcome steps in the direction to ensure safe and secure railway.

Railways are the lifeline of the country and in a condition where there are no particular alternatives to it, the people who are forced to travel should be taken into confidence by the government for their safety and security.

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Q) Critically analyse challenges faced by Indian railways in ensuring safety of

passengers. It is siad that in managing safety, the emphasis should be on reforming

the system rather than firefighting. Do you agree? Analyse. (200 Words)

The Hindu

Livemint

Background - Indian railway is one of the largest mode of transport in the world carrying more than 7 billion passengers per year. The Railway Ministry, has recorded an average of 50 derailments a year over the past four years, with a peak of 63. Internal investigations by the Commissioners of Railway Safety have found human error to be responsible for 70 per cent of serious rail accidents, which underscores the importance of training and adherence to strict operational discipline.

Challenges in ensuring safety:-

Political - The populist steps guided by political incentives have kept passenger tariffs very low while new trains are constantly being introduced, burdening the track infrastructure to unbearable levels. The low tariffs do not allow the passenger railways to recoup its losses and the resources available to enhance safety mechanisms remain minimal. The political incentives also come in the way of removing human encroachments on railway infrastructure—another source of casualties. The Rakesh Mohan-led National Transport Development Policy Committee had identified, 141 out of 212 sections of high-density networks operating at a line-capacity utilization of over 100%. The tracks are therefore, “strained to the breaking point” as the optimum line-capacity utilization for smooth operation of trains is 80% or below.

Slow pace of adoption of technology - The Indore-Patna Express, which met with an accident was travelling at a speed of 110km per hour—a speed at which the ICF coaches (manufactured in Integral Coach Factory, Chennai) are not safe due to lack of anti-climbing features. The high-level safety review committee chaired by Anil Kakodkar had recommended switching over from ICF to Linke Hofmann Busch (LHB) coaches in 2012. The task remains incomplete to this date. The LHB coaches have anti-climbing features which prevent the rolling stock from piling over each other in case of accidents, thus minimizing the number of casualties.

Human’s errors - A large number of train accidents are on account of human failure—115 of 131 train accidents in 2014-15 were attributed to this reason. The Indian Railways still depends on an army of trackmen for the maintenance of track infrastructure. In the backdrop of the recent accident, various efforts underway to incorporate technology to do this job must be accelerated.

Unfilled vacancies - at the lower level (track men, line men, technicians) stress the existing workers, make track maintenance unproductive. Immediate steps should be taken to fill these vacuum and sensitise the existing and recruited workers on the maintenance.

Inadequate finance – Subsidised passenger tariff gives less revenue to IR. Merging of railway budget with general budget might provide a relief. However other alternative funding has to be sort out such on the lines of Special Safety Fund in 2015.

What reforms are needed?

Independent safety Authority - In the present situation, the three vital functions (rulemaking, operations and the regulation) are all vested in the Railway Board. There is need for an independent mechanism for safety regulation. The Anil Kakodkar Committee recommends, the creation of a statutory Railway Safety Authority with enough powers to have a safety oversight on the operational mode of Railways.

Research Design and Standards Organization (RDSO), the apex technical wing of the Railways, is highly constrained. This has hampered the ability of the system to internalize emerging technologies. The Kakodkar Committee recommends restructuring of RDSO for greater empowerment. It also recommends that a Railway Research and Development Council (RRDC) be set up directly under the government.

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Financial investment needed - The Kakodkar Committee concluded that with constant pressure on finances, maintenance of infrastructure has been hit. The financial state of Indian Railways is ‘at the brink of collapse’ unless some concrete measures are taken.

Train coaches- According to Anil Kakodkar Committee recommendation, the outdated Integral Factory Coaches (ICF) should be replaced by Linke Hoffman Busche(LHB) coaches as these do not override the coaches in case of a collision.

Signalling system - According to Kakodkar committee recommendation, an advanced signalling mechanism as adopted in Europe should be adopted as 16% of the accidents take place at rail crossing and 1% due to rail collision.

Cooperation from states - State governments must bear responsibility for the safety and monitoring of the physical terrain through which trains run, and be prepared to handle disasters. Also, accident victims must have access to medical facilities. But, prolonged neglect of the public health system in most States offers little hope that things can be turned around quickly. Thus states should come forward to assist the central government at these fronts.

Innovation through PPP – As railways being crucial component of infrastructure not only as means of carrying passengers but also in carrying goods (freight). The Public-Private-Partnership model should be brought to bring new innovation and designs to renovate railway.

Track Modernization – The old track design and poor maintenance are also one of the reasons of frequent train accidents. According to Khanna rail safety review committee report, 25% of the tracks have perished its life. Ultrasound flaw detection machines should be used to identify the tracks and immediate replacement of these tracks should be done.

Use of technology - Early Warning System and real time monitoring can be done with the help of GAGAN and BHUVAN - satellite based services. For example - NHAI is to utilize ‘GAGAN’ and ‘BHUVAN’ satellite systems to prepare a 360-degree mapping of all national highways for future safety and maintenance.

Sanitary aspects –Existing unhygienic situation by direct discharge toilets, which also corrode the rails should be replaced by bio-toilets by suggested by Railway minister.

Indian railways face a challenge in balancing dimensions of railways like safety, modernisation, handling huge crowd, low revenue. But safety aspect should be prioritised in all that and all stakeholders must act in reforming the system.

Q) It is argued that new high-end ultra-supercritical coal-fired power plant are more

efficient than renewable sources to generate energy, especially in India. Discuss the

technology used in these new ultra-supercritical coal plants and examine if they are

more efficient and cost – effetcive compared to renewable sources. (200 Words)

Livemint

India has set a renewable energy capacity target of 175 GW by 2022, but it is argued that supercritical (SC) and ultra-supercritical (USC) coal based power plants produce more energy at the same investment levels for renewable sources and they also reduce emissions effectively.

Unlike Conventional plants, USC power plants operate at temperatures and pressures above the critical point of water, i.e. temperature and pressure above which the liquid and gas phases of water coexist in equilibrium. Since, there is no difference between "water gas " and " liquid water ", it helps in increasing the efficiency above 45% higher than the conventional coal plants that has an efficiency of around 30% .

The upfront cost of ultra-supercritical (USC) High Efficiency Low Emissions HELE technology is high but it has greater efficiency of up to 45%, reduces emissions- including Carbon dioxide and Particulate matter and fuel costs. Its deployment can reduce greenhouse gas emissions from the entire power sector by around 20%.

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At present, about 60% of the country’s over 307 GW of power generation capacity is based on coal, using USC HELE technology can serve both the purpose of meeting energy demand and reducing emission, when we compare it with renewable energy as below:-

USCs produce about four times more power than solar and wind power projects which are intermittent due to weather conditions the system costs for installing back-up (for supplying power when there is no sunlight or wind), power storage facilities and a smart grid that can manage voltage fluctuations, thus very expensive unlike USCs

Other renewable energy sources like - tidal energy is more predictable than wind and solar, but their location constraints and transmission to remote areas will aggravate the cost.

However, we cannot deny the utility of renewable energy as a long term source because coal as a fuel is limited and would last for another century. According to IEA’s World Energy Outlook 2015 report, India has 237 million people with no access to electricity, thus it is important to provide energy to them, which would be affordable and sustainable.

Topic: Science and Technology- developments and their applications and effects in everyday life

Q) Discuss the issues involved in political use of Artificial Intelligence. (200 Words)

The Indian Express

Artificial Intelligence is the intelligence exhibited by the machines using programs, analysing huge

amount of data and interpretations. It has made its footprint in many sector of the society such as

Education, Industries, commerce and as such. In recent years, its usage has been increased in political

sphere as well.

Positive implications

1) Cost and Time factor - Computers process million of data and also retrieves information from social

media (where the public participation is more) and provides the result. This immensely reduces the

time that is required in manually acquiring and providing the information from/to the public on

various political issues. This in turn reduces the cost involved in terms of logistics, labour and as such.

2) Accessibility – Quick accessbility of information and also easy outreach to public makes this as a

viable option.

The tool has been increasingly used in the USA elections since the year 2004. However there are some

concerns

1) Authenticity – It purely dependent on code developed by the programmer(s)

2) Cyber security – with the equivalent mal-development of techniques to attack any coded programs,

as it involves political aspects, it raises fears

3) Social turbulence – Any false information could intensify the tensions between opponent groups and

threatens social fabric

As any technology should be welcomed with the caution, the spread of AI should be should be checked

and properly used to reap its intended benefits.

Q) Examine the technology involved in the Decision Review System. Why its use in the

cricket was debated? Do you think its use would benefit cricket? (200 Words)

The Hindu

The DRS is a technology-based system used in cricket sport to reduce any human errors in it .It was a result

of the Sydney Test match,2008.

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It involves the following technologies:-

a) Hawk-eye: a ball tracking-technology to track path of the ball,whether it is hitting the wickets or not.

b) Hot Spot: an infrared technology to confirm whether the ball has hit the bat or pad.

c) Snickometer: to detect small sounds when the ball hitting the pad or bat.

All these technologies aims at making the decisions free from human errors.

Why was it debated?

1) The technology is not a foolproof one as it leaves a room for the unskilled human intervention.Eg-

Usage of silicon tape on the bat by english batsman Kevin Peterson to fox the system.

2) Many experts believe that the third umpire's decision, who has the access to technology, must be given

weightage over on-field umpires.

The DRS use would benefit cricket in the following ways:-

1) Makes a decision fair due to reliance on technologies.

2) Build trust and confidence in the sport of cricket, thus good for its flourishing.

Negatives:-

a) undermines the value of on-field umpires.

b)technology is not fully reliable and can be wrong sometime.Eg-silicon tap(caught behind) and trajectory

of ball(LBW).

Any technological intervention to sports to imbibe correct decisions does not come without errors. After all,

the technological errors cannot be overlooked. Same is the case with human errors when umpires decide.

Hence, the crucial and tough decisions must be taken after supplementing all the technological and human

inputs and must not rely on an ultimate system in order to adopt a decision taken in utmost good faith. This

is how it's use will benefit cricket.

Thus, the DRS is a good step in making the sport of cricket error-proof but still some refinement and

greater standardization of it needed to make it universally accepted.

Q) In 2015, a team led by Utpal Tatu, professor of biochemistry, IISc, completed the

genotype sequencing of Candida auris. Why genome sequencing of this species is

significant? Examine. (200 Words)

The Hindu

Background - On November 4, the Centers for Disease Control and Prevention, a leading public health institute in Atlanta, U.S., reported 13 cases of infection by the deadly fungus Candida auris in several parts of the country. Apart from the U.S., outbreaks have been reported this year in eight countries across four continents — India, Pakistan, South Korea, Kuwait, South Africa, Colombia, Venezuela and United Kingdom.

In 2015, a team led by Utpal Tatu, professor of biochemistry, IISc, completed the genotype sequencing of Candida auris , widely considered an emerging superbug fungus as it does not respond to conventional antifungal drugs. Dr. Tatu’s team was among the first to report the high rate of misdiagnosis of Candida auris.

Why genome sequencing of this specie is significant ?

Help in diagnosis - Current diagnostic procedures to detect fungal infections cannot detect Candida auris , which is resistant to common antifungal treatment. Genome sequencing will help in better diagnosis. The team of scientists has developed a diagnostic tool to detect Candida auris using polymerase chain reactions. In India, high rate of misdiagnosis was reproted.

Understanding the characteristics of virus - Genome sequencing will help in understanding its characteristics and to find the alternative way to prevent it. Fungus was found to be drug resistant due

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to indiscriminate use of antibiotics. In a study, the strain found in the United States was resistant to even the third class of antifungal treatment. One reason for the high resistance to existing drugs is that this species has a higher number of drug efflux pumps compared to other species. Drug efflux pumps are proteins that prevent other drugs from crossing the cell membrane.

Prevention - Mostly, caused by hospital acquired infection especially in immune compromised patients (HIV cancer etc) with high mortality rate. Therefore a genome sequencing will be helpful to render hospitals to take necessary measures to prevent it.

These kind of researches are very much necessary to bridge the gap between academic researches and clinical practices, so they can collaborate and can timely check the emergence of superbugs.

Q) What are Yamanaka Genes? Discuss their significance and applications. (200

Words)

The Hindu

Nature

Yamanaka Genes - They are the four essential genes that can reprogrammed the cells in our body and, in principle, be used to regenerate old cells or grow new organs. Collectively known as OSKM, these Yamanaka genes are named after Japanese scientist Shinya Yamanaka. He won the Nobel Prize in Physiology or Medicine in 2012, along with Sir John B. Gurdon for pioneering a technique to use these genes for reprogramming cells

Significance of Yamanaka Genes:

Pluripotent nature - They can make any type of cell in the body and are called induced pluripotent stem cells ( iPS )cells & can be used to replace damaged or lost cells. Earlier it was known that only embryonic stem are naturally pluripotent. Yamanaka’s discovery adds a new dimension with respect to generation of stem cells

Better understanding about working of cell - It also adds a new area of research w.r.t of working of reprogramming inside the cell .It will help in understanding the working of cells better.

Applications of Yamanaka Genes:

Red blood cells: they can be used for RBC generation as type O red blood cells are synthesized from iPSC developed with Yamanaka genes, thus helpful in Anaemia and RBC related diseases.

Identification of disease & drug : iPS cells can be derived directly from adult patients & can be used for investigation of diseases and their drugs. It will help in developing a therapy for a given disease is understanding exactly how the disease work. e.g. Reprogramming can help scientists to now get access to large numbers of the particular type of neurons (brain cells) that are affected by Parkinson’s disease.

Organ synthesis: skin, blood or others cells can be reprogrammed to iPS cells with the help of Yamanaka genes and can be used to grow liver cells, neurons etc needed to treat a particular disease.

Tissue repair: iPS cells generated from Yamanaka genes can also be used to grow & repair tissues & vascular vessels.

Curing Genetic disease: Genetic problem could be corrected in their iPS cells in the laboratory, and these repaired iPS cells used to produce a patient-specific batch of healthy specialized cells for transplantation.

However, there are certain challenges like risk of incomplete reprogramming of genes into iPS cells, tumour generation & low efficiency. Scientists have also found a ‘stress factor,’ a pro-inflammatory molecule called interleukin-6 (IL6), that may be responsible for reducing the efficiency of the OSKM genes.

But it provides unlimited supplies of autologous cells & bypass the need for embryos, better understanding of these genes may lead to greatest achievements in medical treatments & research.

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Topic: Issues relating to intellectual property rights;

Q) What do you understand by data exclusivity in pharma sector? Critically

analyse how the recent proposal of the government to change the four-year time limit

for State-level drug regulatory approvals to 10 years would affect various

stakeholders. (200 Words)

The Hindu

Data Exclusivity - Data exclusivity is a kind of intellectual property protection wherein clinical trial and other data submitted by an originator drug company cannot be used or relied upon by a drug regulatory authority to approve a generic version of that drug for a certain period of time. The notion is that without such protection, the originator company lacks the necessary commercial incentive to conduct expensive trials and take a potential drug to the market. Blocking generic entry for some years will, the theory goes, help drug companies invest in clinical trials.

Government has come up with a proposal for an enhancement of data exclusivity norms from current four years to ten years by amending Drugs and Cosmetics Act (DCA), which has its implication on various stake holder as below :-

Generic drug producers - They will have to wait longer for drug approval through bio-equivalence route claiming that the generic version is chemically similar to originator drug as clinical trial data will be available only after the extended period. For faster approval, they should resort to repetition of the expensive clinical trials performed by originator drug companies and this will cut in on their profit margin.

Originator drug companies - This move will benefit them as they will have an extended period of market monopoly, as generic drug companies will mostly prefer to wait to acquire the clinical trials rather than undertaking it themselves. They can save precious time and energy till date used for pressurising the Govt in various international forums to initiate data exclusivity norms. Also, the favourable government move may attract more foreign investments in pharmaceutical R&D.

Consumer - will be at loss, as the affordable drugs will have only a late entry in the market till which time, they will be forced to buy the originator's drug at high price.

Ethical issues- By pushing the generic companies to conduct the same clinical trials already done, there is a question of immorality involved in repeating animal studies and subjecting more human volunteers to safety and efficay tests unnecessarily.

Central drug regulatory authorities: Under Current laws, after 4 years the permission of use of drug data generated by Originator Company is granted by State level authority. State level regulatory authority always been questioned for its competency and lackluster attitude in granting license. Drug Controller General of India (DCGI) is better equipped to do data monitoring. Hence, for 10 years it will be within the monitoring of DCGI. Further, monitoring the data for ten years gives better opportunity to look out for adverse drug reactions and the matter remains in the domain of the

DCGI

The government instead of pushing for backdoor data exclusivity, should rely on more transparent norms. The reason for the existing 4 year limit for data protection seems to have no rationale other than helping the big pharma companies. So, such unwarranted extension will invite greater criticism. If a generic company can claim bio-equivalence, then forcing them to repeat clinical trials already undertaken is a waste of time and effort. Availability of affordable drugs to the poor and needy should be the prime concern for the lawmakers.

The government should revisit the proposal for the extension as it hinders the poor people access to drugs. Strengthen the State regulatory authorities’ competence and expertise. More importantly, Drug and Cosmetics Act should define the kind of studies and data that a generic applicant is meant to submit to produce the bio-equivalence to reduce the lengthy clinical procedures

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Topic: Achievements of Indians in science & technology; indigenization of technology and

developing new technology

Q) Recently it was reported that the Chinese advancements in space research could

threaten NASA’s monopoly. Do you think India has the potential to challenge China in

space domain? Justify. (200 Words)

Livemint

The US had the biggest budget for space exploration, spending over six times more than China, according to Organisation for Economic Co-operation and Development figures for 2013. However, according to a 28 August report in The Guardian, despite its large budget, the US made only 19 successful space launches in 2013, compared with China’s 14 and Russia’s 31. Therefore, it is being speculated that with latest development of world's fastest Supercomputer (Sunway), quantum technology and other space related development, China would threaten NASA's monopoly.

China, being the world’s second-largest economy, invests heavily in space missions. For India, budget is clearly a constraint. India’s space sciences budget, which is meant to fund research into our planet, the solar system and universe, is a mere $43 million, according to the ISRO’s 2015-16 annual report. Comparing it that with China’s $110 million, it is very less.

Despite budget constraints, ISRO has many achievements to its credit.

Set up in 1969, ISRO built India’s first satellite, Aryabhata, which was launched by the Soviet Union on 19 April 1975. Subsequently, it also built the Polar Satellite Launch Vehicle (PSLV) for launching satellites into polar orbits and the Geosynchronous Satellite Launch Vehicle (GSLV) to place satellites into geostationary orbits. In January 2014, ISRO successfully used an indigenous cryogenic engine in a GSLV-D5 launch of the GSAT-14.

ISRO sent a lunar orbiter, Chandrayaan-1, on 22 October 2008, and then the Mars Orbiter Mission (MOM), which successfully entered the Mars orbit on 24 September 2014, making India the first nation to succeed in doing so on its first attempt. ISRO became the fourth space agency as well the first space agency from Asia to successfully send a spacecraft into the Mars orbit and recently RLV was tested by India for future manned mission.

Although, ISRO have done a remarkable work so far in raising India stature in space in the world and has potential to challenge China in space, but certain hurdles like lack of sufficient funds and human resource crunch with skill have been the area that is acting as a hurdle in making progress .This can be solved by increasing budgetary allowance as well as improving the quality of higher education especially engineering.

China's economy being five times that of India, their spending capacity in R&D and projects is much more. India can forge alliance with JAXA or NASA in technology sharing and joint development of launch vehicles and deep space exploration, data sharing for manned mission to space. Need of the hour for the government is to provide sufficient financial assistance towards Research and Development and technological advancement.

Topic: Indigenization of technology and developing new technology.

Q) Recently China unveiled J-20 stealth fighters. Should India be worried? What is the

principle behind working of stealth fighters? Examine. (200 Words)

The Indian Express The Indian Express Stealth fighters are designed to avoid radar detection, which is accomplished by

1. designing the aircraft such that any radar signal reflected by aircraft body, is reflected away from the

radar receiver;

2. covering the aircraft body in materials that absorb radar energy.

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China's recent unveiling of stealth fighter J-20, should make India worried because:

1. J-20's induction strengthen china's military muscle; deployment of J-20 in Tibet will tilt military

balance further towards China vis-a-vis India.

2. As J-20 is an indigenously built fifth generation fighter, its improved variants will come

subsequently, further widening the gap in military preparedness between India & China.

3. given China-Pakistan close ties, Pakistan will sooner or later acquire stealth fighter J-20 from

China.

4. our own fifth generation fighter aircraft (FGFA) is still under development.

Vis-a-Vis air firepower, India matches China as:

1. Rafale, a Medium Multirole Combat aircraft (MMRCA), being acquired from France, has some

stealth features. e.g. radial cross section of rafale fighter is significantly smaller for an aircraft of its

size.

2. FGFA being jointly developed by India & Russia focuses on stealth technology.

3. deployment of J-20 in Tibet will take time as regional airports lack support features required for

stealth fighters.

4. Brahmos, (Indian supersonic cruise missile) can easily target entire Tibet region.

India should focus on FGFA programme with renewed vigour to sharpen its strike capabilities in the

region vis-a-vis China.

Q) Discuss how convergence of IT and defence industries in India is in their mutual

interest as well as in the national interest. (200 Words)

Livemint

As India is aspiring to become an important regional power and global power, the role of defence sector becomes very crucial for country’s long term strategic planning, thus government's vision for indigenization of the industry and acquiring advanced technologies is a right step in this direction. With the growing applicability of IT, India has the unique opportunity of combining IT services industry with defence industry. This convergence is beneficial to both industries and also helps in realisation of national interests as discussed below:-

Portfolio expansion– With the increasing use and popularity of UAVs-drones, it is time for Indian IT industries to diversify to bio-robotics, artificial intelligence and other products. It will help in portfolio diversification of IT industry and at the same, their capability could be used in defence industries for making robust, customised military equipment- usage of IT tools for intelligence & Surveillance (usage of RFID), thus utilising IT expertise for their product diversification.

Market diversification– IT enabled defence products gives us enough opportunity for India to diversify market for its defence products. Defence deal like Vietnam, recently concluded by India could be explored in future. This will mutually benefit IT and defence industries, by increasing demand.

Will enhance Security - With the increasing incidence of cyber threats, expertise of IT industries is becoming very crucial to secure defence equipment's (GPS guided missiles, Drones, etc.) form enemy's hand. Convergence will help in securing the overall security of the nation with better cyber security and attack proof defence equipment. It will also reduce reliance on foreign suppliers, thus reducing any chances of leakages of critical information, as was recently found in case of Scorpion deal with France. With IT- defence convergence, better management of borders in real-time could be done, prompting timely action.

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Attract investment and R& D- Convergence could attract private participants into defence sector in line with Make in India. This would enhance creativity and also investments into the defence sector. It will boost R&D & Innovations in areas such as artificial intelligence.

More Employment avenues – Expansion of sector gives scope for innovation and will attract skilled talents, help in reducing jobless growth. Also this could be an opportunity to latent recruit retired young army members in maintaining information systems and servers (reduce OROP problems)

Less burden on government – Convergence will give boost to growth of indigenous defence products, industries thus reducing import bill of government related to defence and achieving self-sufficiency in manufacturing of defence products. . Also, governments target for creating employment through Make in India, will get boost, contributing to overall GDP growth.

But, we need to be cautious about the crony capitalism between private players and defence spending. Also, a skilled pool of human capital is need for this convergence with improved spending by government as well as private players in RnD.

Creating a board consisting of government representatives, academia & private industries and making provision of lateral entry of experts in government will boost such convergence plans. Creating organization on lines of US Defence Advanced Research Projects Agency which will identify & fund frontier defence technology research.

Hence blurring the boundaries of hardware and software is the need of hour, which can be achieved by some policy and institutional changes. Wars are fought with weapons but won by men; India has a unique chance to reboot both.

Topic: Environmental pollution; Conservation; Climate change.

Q) The national capital and several other cities suffer crippling pollution in the post-

monsoon and winter months. Why? Also examine why government policies have

failed to address this pollution problem. (200 Words)

The Hindu Most of our cities including national capital are among most polluted settlement as per WHO reports.

Situation becomes grave during post monsoon and winter period because:

-> Low surface temperature: Due to lower surface temperature, air including dust particles don't

ascend up and remain near surface causing smog

-> Post monsoon effect: Rain plays a significant role in washing off dust particles like PM 2.5, 10 or

even Carbondioxide, Sulphur dioxide by removing it from atmosphere which cease to exist after

monsoon

-> Anthropogenic reasons: Use of biomass to keep warm, winter harvest season around cities for

e.g Haryana, Punjab and festivals like Diwali, Lohri are placed during winter season also augment the

situation

Government alongwith our active judiciary has been very determined to curb air pollution and taken

several measures which hasn't been very successful due to several reasons:

-> Too much focus on transport sector: Dust particles are major contributor of city pollution and

transport sector has little role in it. Thus regulation of transport sector alone won't be enough

-> Lack of coordination b/w technology and legislation: Most of the factors causing air

pollution are geological factors which can't be treated with just legislation and technology is must

->Lack of cooperation from citizens: Most of the legislative measures taken by executive is not

well appreciated by citizens which show their lack of understanding of this grave situation and thus

they find it irrelevant for them

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-> Difficult to regulate: Agricultural activities, festivals rituals are difficult to regulate citing socio-

political difficulties

Government effort should be appreciated but it won't be successful without technological and political

synergy. Government should involve people and create powerful campaign on the lines of Swacch

Bharat Mission to mark its importance. Technology like clean energy, dust absorber and modern

agricultural practices should be extensively used to create a better and sustainable cities which will be

in tandem with Sustainable Development Goals.

Q) Discuss medium- to long-term approach, that are new and innovative, for pollution

control in Indian cities. (200 Words)

The Hindu With the AQI of our cities ruling the charts, we need to come up with both medium term and long term

approach to deal with it.

Medium term approach:

• Cloud seeding- to bring in rain in deficit areas, water reduces the effect of air pollution.

• Making steps taken to protect environment a necessary condition to grant registration to any NGOs.

• Mandatory two days a week work from home for employees.

• Star rating of industries: Based on their contribution towards reduction in pollution and giving tax

discounts.

• Providing employees alternative heating arrangement. Burning dry leaves need to be penalized.

• Increasing the parking fees.

LONG TERM APPROACH:

• Strengthening environment laws- environment protection act. Giving more teeth to the SPCB and the

CPCB.

• Corporate plans which give discount on the Public transport system- will encourage people to opt for

Public transportation.

• Polluters pay principle: Someone who pollutes need to pay for the wrongs done. For example, a

shopkeeper needs to pay if he/she uses polythene bags.

• Technological amelioration: Computerized and automated signalling system for faster movement of

vehicles. A common database of vehicles plying need to be maintained.

Short term approach would need the state government, the long term ones on the other hand requires

central government’s intervention, by and large. Cooperative federalism between centre and states,

Competitive federalism in between states to curb the effects of pollution could go a long way.

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Q) What are the objectives of the United Nations conference on climate change which

is now under way in Marrakech, Morocco? What’s India’s agenda in this Conference?

Also discuss challenges the outcome of this conference would face. (200 Words)

The Hindu

Background- The upcoming United Nations conference on climate change (CoP22) at Marrakesh, Morocco will discuss the actions and policies that are required to implement the Paris agreement (CoP21).

Objectives of the conference:-

Finance and technology transfer mechanism – Methodologies and process offinance and technology transfer from developed to developing nations would be taken up.

Review- onWarsaw International mechanism for loss and damage due to climate change and its impact would be taken up.

Adaptation mechanisms – in the background of climate change would be discussed and grounds for such mechanism would be dealt.

India’s agenda:-

Ensure CBDR principle – The government would ensurethat principle of equity and CBDR are upheld at the conference, for giving due space and time to developing and least developed countries in adopting the terms and conditions of the agreement.

Pushing for regional concern- India wants that the conference should come up with clear statement on loss and damage in line withextreme weather conditions, slow onset events, ecological issues in Himalayan regions.

Adaptation mechanisms dealing with India’s concern – Indian agriculture is dependent upon the monsoonal rainfall and India has long coastline of 7500 kms. In this context, India’s push for adaptation mechanism would be mainly foragricultural sector and coastal areas.

Insurance mechanism – India wants that , globally funded insurance mechanism which was proposed to help farmers, to tackle the climate change effects should be also discussed.

Challenges:-

Hegemony of developed countries – There is possibility that developed countries like- USA, Japan, etc might cancel the Paris agreement, as it has happened in the past with respect to Kyoto Protocol. Victory of Doland Trump in presidential elections in USA could also affect, as he had vowed to cancel the Paris Agreement. This will also affect the funding, technology transfer and the whole purpose of the agreement would be defeated.

Ignoring historical emissions– Paris agreement did not talk aboutcarbon budget system which accounts historical emissions by developed countries. Ignoring such vital issue will pose burden on the developing and least developed countries.

Finance – The $100 billion fund was envisaged under Paris deal, but it is not clear who will contribute how much. Lack of clarity on this matter will delay the adaptation measures for developing and least developed countries.

Way forward – Keeping in mind the SDG goals, Sendai framework for disaster management and in broader terms the negative impact of climate change, the leaders should seal the opportunity to realise the spirit of Paris agreement. India has already played part via NAPCC and ambitious INDC targets. Need is for support through finance, technology and global coordination to save the earth by mitigating greenhouse gas emissions to contain the rise of the global average temperature in the current century to well below 2° Celsius since pre-industrial levels.

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Q) Discuss the role of pharmaceutical companies in spreading of drug-resistant

infections and efforts being made to stop these infections. (200 Words)

Down to Earth

The graph of Drug-resistant infections has been rapdily rising due to laxity on part of pharmaceuticals,

hospitals/doctors and the patients.

Role of Pharma

1. Dumping of untreated antibiotic waste, which subsequently enters food chain.

2. Unhygienic production practices which create conditions for rise of antibiotic resistant bacteria.

3. Colluding with chemists/doctors to push antibiotics to the customer and promoting uncessary

consumption. This causes people/aniimals to develop antibiotic resistance.

Efforts to stop these infections

Global Level

1. Organisations like WHO, FAO have released Global action plan on countering AMR.

2. Greater collaboration among WHO, FAO, World Organisation on Animal Health to addres the issue.

3. Pushing pharmas to follow best practices.

Domestic Level

1. Red-Line campaign, to reduce Over the Counter sale of antibiotics.

2. Promoting cleanliness and sanitiation through Swachch Bharat to minimise spread of infection.

3. Raising awareness among consumers regarding the harmful affects of over use of antibiotics.

Drug resistant infections pose a formidable challenge to the world, which needs to be tackled on a war-

footing.

Q) Which important issues are at the top of India’s agenda at upcoming key global

climate change conferences? Discuss these issues. (200 Words)

Livemint The twenty-second session of the Conference of the Parties (COP 22) and the twelfth session of the

Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP 12) will be

held in Marrakech, Morocco.This meeting comes right after the landmark Paris Agreement, and the

Kigali Imperative which were successful.

Issues which are going to be the focus areas in this conference are:

->TRANSFER OF TECHNOLOGY to developing countries to fight and curb the climate change.

->NECESSARY FINANCE needed to develop these technologies is an issue yet to be agreed upon. India

will try to bring a consensus on this matter.

-> CLIMATE JUSTICE AND PRE-2020 ACTIONS are also the areas to be brought a consensus

upon.Also the effect of climate on Himalayas and Himalayan states is one issue among the other

agendas.

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->SUSTAINABLE LIFESTYLE based on the need-based consumption is one among the priority areas

for India.

->Since India is an agrarian economy, ADAPTATION TO CLIMATE CHANGE is going to be among the

issues to be put. Adaptation in the agriculture sector is a key issue for developing countries like India,

especially from the perspective of food security.

->Warsaw International Mechanism for LOSS AND DAMAGE is going to be discussed on the sidelines

to address loss and damage associated with impacts of climate change, This is a key curative measure

since many countries have suffered(and will suffer in future) the impacts of GHG emissions.

All the countries participating in this conference will achieve their respective goals by strengthening

dialogue, coordination and coherence. The CMA1 meeting is expected to address matters relating to the

implementation of the Paris Agreement like modalities, procedures and guidelines. It will also look at

the status of ratification of the Paris Agreement.

Q) Do you think Forest Rights Act in its present form is one of the reasons why forests

in India are fast vanishing? Critically analyse. (200 Words)

The Indian Express

Background - The objective of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act was to undo the effects of the historical injustices meted out to communities that reside in and depend upon forests for their livelihood needs. Nearly 250 million people live in and around forests in India, of which the estimated indigenous Adivasi or tribal population stands at about 100 million. The legislation grants forest rights to these communities and envisages a role for local government in the decision making process. The environmentalists and conservationists fear that the implementation of the Act had resulted in potentially severe adverse impacts on India’s natural resources and their conservation efforts.

Following reasons explain why it is one of the reasons for vanishing of forests in India:-

Forest degradation- The FRA provides grants of land to forest dwellers – in situ – to the extent of their present holding but not exceeding four hectares. This has led to cutting down of forests for agricultural activities and other developmental work. This has further increased the habitat fragmentation for wildlife, causing serious human–wildlife conflict.

Exploited by land-grabbers- Initially the act was intended only for tribal communities, but this was later extended to all forest dwellers. Thus identification of beneficiary was not easy. This has opened way for powerful land-grabbers and has been exploited by mining and logging companies indirectly.

Increasing demand for individual rights- Instead of community rights, the statistics of ministry of tribal affairs shows that people are more assertive of individual rights to en-cash real estate and financial opportunities. Thus it is causing diversion of forest to commercial exploitation (mining, logging, etc)

No specified time limit - Even though the FRA had provided for a 90-day limit for filing claims under FRA, the claims are entertained till date. Even after rejection of claims, the dwellers are not evicted from the forest area and they keep damaging forest through their activities

Allocated land are not fertile - Under ‘Title Rights’ most of the allocated lands are non-fertile, due to which tribal are cutting down the trees for cultivation over fertile land thus destroying the forest.

However, the act is not solely responsible for forest degradation. Poaching, unholy nexus of forest conservators with corporates and poachers, forest fires, developmental projects are also responsible for declining forest areas. FRA has also helped in conservation through following:-

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Community Conservation- For conservators, it has acted as first line of defence along with protecting the rights of the people. For example- it was beneficial for community conservation in Uttarakhand’s van panchayats, community forest management in Odisha, in the B R Hills Tiger Reserve in Karnataka, etc. It was possible because, FRA includes the principles of respect for rights (including right to use, manage and conserve), transparency and accountability.

Critical wildlife habitat- FRA provides for notifying critical wildlife habitat. Critical Wildlife Habitat means such areas of national parks and sanctuaries that are required to be kept 'inviolate' for the purpose of wildlife conservation, as per a provision of the Forest Rights Act, 2006. The guidelines of FRA also envisage that the forest department, with the forest-dwelling communities, should prepare a joint management plan for the CWH.

Way forward- The forest officials should carry out awareness drives to educate people about the misuse of the rights under FRA. The act must clearly specify the process of eviction and rehabilitation of the people who have no legal right to stay in the forest area. The act must prohibit commercial farming, plantations, and slash and burn cultivation. Only traditional forest items, eco-farming and other activities which do not adversely affect the forest must be allowed.

Q) Critically analyse the nature and focus of environmental activism in India today.

(200 Words)

EPW

Background - Beginning with the Chipko movement in early 1970's in northern India to the recent Kundamkulam protests in Deep South, environmental activism has grown both in magnitude with a pan India presence. Environmental activism is needed in India keeping in mind the aggressive developmentalism, leading to increase in incidences of heat waves, serious water scarcities, etc. We should not forget the Alakananda floods of June 2013, and the Chennai floods of December 2015, both caused by developmental activities. At the same time, we see growing social violence all around us, violence linked to struggles over natural resources. Environmental activism in India comprises of following two nature:-

Bureaucracy driven - It focuses on protected areas and relies on the bureaucracy that often misuses its powers against communities that live in close contact with nature.

This approach, focuses on protected areas, and relies on government action favouring the guns and guards approach. This approach has resulted in harassment and extortion by a corrupt bureaucracy. Experience of the Mahabaleshwar–Panchgani Eco-sensitive Zone is example at this front. However, this approach is good when high level of sensitivity is required like saving critically endangered animals (Himalayan stag, Malabar civet etc)

People's centric - focuses on protecting nature to safeguard people's livelihoods and health.

This strand of environmental activism is motivated by the need to protect nature to safeguard people’s livelihoods and health. This pro-people, pro-nature school extensively relies on protests and lawsuits, now more and more before the National Green Tribunal (NGT). However, both protests and litigation have serious limitations.

This approach has been strengthened due to passage of 73rd and 74th amendments to the Constitution assigning an important role to local self-governments—panchayats and nagarpalikas—in taking a variety of decisions, relating to management of natural resources. The Panchayats (Extension to Scheduled Areas) Act of 1996 takes this further, assigning a vital role to gram sabhas, as does the Forest Rights Act (FRA) of 2006. But our governments have been sabotaging these democratic initiatives, as the Niyamgiri developments have so strikingly demonstrated.

Changing scenario -Today, the role of NGOs in leading environmental activism is becoming crucial. For example recent activism against nuclear power plants by NGO's such as Greenpeace has led to massive opposition by locals and civil society groups to mount pressure on the government to roll back decisions. These NGO's function in corporate style often receiving massive amount of foreign funds. Also litigation is no more restricted to local politics, hectic lobbying at the highest levels of government is often done for

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favourable decisions. Cases also arise where these NGO's are found to be illegally receiving money from banned/unlawful organizations with ulterior motives.

Social media activism is also giving due importance to environmental concerns and instances of harm to nature are condemned throughout India. A new phenomena of judicial activism has come to the forefront where courts themselves take upon cases related to nature conservation. The establishment of NGT has further popularized this.

Way forward - Gandhi ji insisted on revival of rural industries, mainly dependent on agricultural produce. It is time now to promote other newly emerging village industries based on mineral resources like iron, manganese and bauxite ores, sand and stone, and revive village industries based on forest resources that had been destroyed by taking away resources like bamboo and handing them over to paper mills at throwaway prices.

The environmental agenda should focus on the reassertion of people's rights over natural resources, and this should be coupled with an action-oriented promotion of nature-friendly cooperative enterprises in sectors like quarrying, and mineral and sand mining. Cooperative mining is an alternative that is likely to attract widespread support at the grass-roots level.

Q) Discuss the role of pharmaceutical companies in spreading of drug-resistant

infections and efforts being made to stop these infections. (200 Words)

Down to Earth

Background - The growing incidences of drug-resistant infection has become a global concern. Effluents from pharmaceutical industries, sewage and wastes discharged from animal farms, hospitals and clinics as well as disposal of unused/expired antibiotics in domestic settings also contribute to the spread of antibiotic residues and drug-resistant bacteria in the environment. The pharmaceutical manufacturing and research sector is by far the largest contributor to environmental pollution by antimicrobials.

Role of pharmaceutical companies:-

Untreated waste disposal- Manufacturing sites of these companies are hub of drug resistance bacteria, effluents & wastes from these sites along with disposal of unused/expired medicines from domestics are major cause in spread of bacteria, which also enter in the food chain.

The Pharmaceutical companies are confined to the standard of biological Oxygen demand ( BOD ), suspended oils ,grease etc. but no specific standard related to bacterial load is available at present, causing drug resistant infections to flourish.

Unhygienic production practices- being practised by pharma manufacturing units is also leading to the growth of antibiotic resistant bacteria.

Efforts being made -

Global efforts:-

Organisations like WHO, FAO have released Global action plan on countering AMR.

Companies in developed countries are focusing on research in this direction while developing countries are focusing on bio-security measures, improved animal husbandry & agricultural practices.

Few Big Pharmaceutical companies made commitments in UN meeting to review their manufacturing & supply chain methods to avoid releasing AMR.

Domestic efforts:-

Red-Line campaign, to reduce Over the Counter sale of antibiotics.

"National Policy for containment of Antimicrobial Resistance" to review & recommend creation of Surveillance system for antibiotic resistance was formulated.

Promoting cleanliness and sanitation through Swachch Bharat to minimise spread of infection.

Raising awareness among consumers regarding the harmful effects of overuse of antibiotics.

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Way forward- Discharge standards with antibiotic level below a certain limit for pharma companies should be set. A monitoring framework for management of wastes from livestock farms, hospitals & households should be formed. Efforts should be made for more research in this direction.

Q) What are the objectives of the United Nations conference on climate change which

is now under way in Marrakech, Morocco? What’s India’s agenda in this Conference?

Also discuss challenges the outcome of this conference would face. (200 Words)

Background- The upcoming United Nations conference on climate change (CoP22) at Marrakesh,

Morocco will discuss the actions and policies that are required to implement the Paris agreement (CoP21).

Objectives of the confrence:-

Finance and technology transfer mechanism - Methodologies and process of finance and

technology transfer from developed to developing nations would be taken up.

Review- on Warsaw International mechanism for loss and damage due to climate change and its

impact would be taken up.

Adaptation mechanisms - in the background of climate change would be discussed and grounds

for such mechanism would be dealt.

India’s agenda:-

Ensure CBDR principle - The government would ensure that principle of equity and CBDR are

upheld at the conference, for giving due space and time to developing and least developed countries in

adopting the terms and conditions of the agreement.

Pushing for regional concern- India wants that the conference should come up with clear

statement on loss and damage in line with extreme weather conditions, slow onset events, ecological

issues in Himalayan regions.

Adaptation mechanisms dealing with India's concern - Indian agriculture is dependent upon

the monsoonal rainfall and India has long coastline of 7500 kms. In this context, India's push for

adaptation mechanism would be mainly for agricultural sector and coastal areas.

Insurance mechanism - India wants that , globally funded insurance mechanism which was

proposed to help farmers, to tackle the climate change effects should be also discussed.

Challenges:-

Hegemony of developed countries - There is possibility that developed countries like- USA,

Japan, etc might cancel the Paris agreement, as it has happened in the past with respect to Kyoto

Protocol. Victory of Doland Trump in presidential elections in USA could also affect, as he had vowed

to cancel the Paris Agreement. This will also affect the funding, technology transfer and the whole

purpose of the agreement would be defeated.

Ignoring historical emissions- Paris agreement did not talk about carbon budget system which

accounts historical emissions by developed countries. Ignoring such vital issue will pose burden on the

developing and least developed countries.

Finance - The $100 billion fund was envisaged under Paris deal, but it is not clear who will

contribute how much. Lack of clarity on this matter will delay the adaptation measures for developing

and least developed countries.

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Way forward - Keeping in mind the SDG goals, Sendai framework for disaster management and in

broader terms the negative impact of climate change, the leaders should seal the opportunity to realise the

spirit of Paris agreement. India has already played part via NAPCC and ambitious INDC targets. Need is for

support through finance, technology and global coordination to save the earth by mitigating greenhouse gas

emissions to contain the rise of the global average temperature in the current century to well below 2°

Celsius since pre-industrial levels.

Q) As the likelihood of climate disasters goes up, the need to mobilize additional

finance to address the losses is greater. What needs to be done to mobilize resources

to address climate change effects? Discuss with special focus on climate-resilient

bonds. (200 Words)

Livemint

Background - Extreme weather events have been increasing in India. In the last 14 years alone, we have witnessed 131 instances of major flooding, several instances of heat and cold waves as well as major drought. All of these have far-reaching financial impacts. The world, and India in particular, is at a critical juncture in climate history—where mitigation, adaptation, and loss and damage all need to be addressed urgently, which needs financing at large scale.

Spending on adaptation actions across five sectors—agriculture, forestry, fisheries, water and ecosystems—is estimated at $206 billion by 2030. Adaptation actions across infrastructure (energy, transport, roads, buildings, bridges) and health are likely to be significantly higher. Thus to finance these a climate-resilient bond is possible solution, which can have several forms:-

Green Bond - A green bond channels debt capital for projects with environmental benefits, predominantly for mitigation activities like renewable-energy deployment, which decreases future climate risk.

Publicly issues bond - For example, the government of West Bengal could issue a tax-free—yielding market return—bond for a five-year duration. In case of major flooding due to a rise in precipitation in West Bengal during the duration of the bond issue, the investment is forfeited by the investor and has to be used by the state to cover the loss and damage caused by the flooding. This sharing of liability between investors, and the pooling of resources to hedge against the impacts of climate disasters, opens up a new set of financiers.

Bond for adaptation activities - Another efficient form of climate-resilient bonds is when the funds raised to protect against climate risks are used for adaptation activities. This form of climate-resilient bonds combines two important aspects, one of borrowing from the debt market for climate projects, and the other of sharing the climate risk between multiple individual investors.

However other than above mentioned climate resilient bond, steps like - clean energy cess, Krishi kalayan surcharge, CAMPA, PAT,REC, National adaption fund, Masala bonds, etc. have been taken by India to mobilise funds for meeting its need to tackle with climate change.

Climate resilient bond is an innovative method to bring in public money to combat climate change. While developing countries need to continue seeking clarity on the pathways of financial support under the UN Framework Convention on Climate Change (UNFCCC) regime, they cannot wait for it. Climate risk is real, and it is growing. We all must share the burden, and act now.

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Q) Analyse the outcomes of recently concluded Marrakech climate conference. Do you

think, the election of Donald Trump as next US President, who has called climate

change as hoax, would derail the climate change deal? Comment. (200 Words)

The Hindu

Livemint

Background - The COP22 to the UNFCC, 12th session of COP of Parties to Kyoto Protocol (CMP 12), and first session of COP of Parties to the Paris Agreement (CMA 1) were held in Marrakech, Morocco. The UNFCC have adopted Marrakech Action Proclamation for Our Climate and Sustainable Development. The Marrakesh Action Proclamation- was signed by 196 countries and the EU bloc, with the aim for the highest political commitment to combat climate change, as a matter of urgent priority. It emphasises, the world to close the gap between their intended reduction of carbon emissions and what needs to be done to keep the rise of the global average temperature well below 2°C in this century.

Outcomes of Marrakech:-

Commitment by least developed countries and sub- national jurisdiction - One of the remarkable announcements at the Marrakech COP was the pledge by the Climate Vulnerable Forum, comprising 48 least developed countries, including Bangladesh, Ethiopia and South Sudan, to get 100 per cent of their energy from renewables by 2050. Along with them, 165 sub-national jurisdictions, calling themselves the Under2s (comprising California, New York, Telangana), announced that they would reduce their emissions by 80-95 per cent below 1990 levels and limit their per capita emissions to under 2 tonnes of carbon dioxide by 2050. These developments show the unprecedented move and commitment of such players in fighting climate change.

Commitment by developing countries - The biggest takeaway from Marrakesh, however, is that, unlike in the past, the developing countries are not going to be bogged down by the stingy ways of the industrialised countries. At the side-lines of CoP 22, India took the lead in cementing the International Solar Alliance — a group of developed and developing nations that aims to make solar power competitive vis-a-vis conventional energy.

Progress with respect to loss and damage - If Paris was about committing to prevent the rise of temperature beyond 2 degrees Celsius, Marrakech aimed to move the needle on loss and damage. With regard to the Warsaw International Mechanism for Loss and Damage, the framework for a five-year rolling work plan was approved, which, starting 2017, will see countries formally address topics such as the slow-onset impacts of climate change, non-economic losses and migration. But, financing for this, is a challenge yet to be solved.

Funding mechanism - The money pledged at Marrakesh —about 150 million dollars — is far short of $100 billion, which rich countries had committed to jointly raise by 2020. However, the developing countries had succeeded in inserting a clause, in the final decisions, asking for a scaling up of financial resources beyond $ 100 billion dollars, per year, after 2020. Political commitment and resource mobilisation will be crucial to meet targets for mitigation of emissions and adaptation.

Fixed a deadline - The countries agreed to a 2018 deadline for framing rules to operationalize the Paris pact. If things go according to plan, the new climate treaty (Paris climate agreement) could come into effect much before the 2020 deadline set in Paris.

Solidarity on climate justice - A rare show of unity amongst developed and developing countries was shown for the commitment towards reducing global, emission and achieving the goals agreed. The Marrakech proclamation have strengthened the responsibility of the developed countries to contribute the funds towards the mitigation of the climate change by developing countries.

The US president elect Trump has not shown interest in the climate change deals including Paris deal and has been calling to cancel US participation in such deals.

However, nothing could be affirmed at this stage, but, to imagine the most extreme cases, the U.S. could ignore its Nationally Determined Contributions (NDCs), pull out of the Paris Agreement in four years, or withdraw from the climate convention altogether. These would be very irresponsible on part of USA, since it is the world’s largest cumulative emitter of greenhouse gases (GHGs) and the second largest annual emitter.

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Further, the implementation of the pledges by most countries depends on finance and technology support from the developed world. The U.S. has an important and central, role to play in it.

In case of any possible derailment from the US, world leaders, UNFCCC should push US to act as responsible nation to save the planet. Also, alternate funding mechanisms and other international forums on renewable energy like International solar alliance (ISA) should be strengthened. Countries like India should increase its focus on ISA and wind power by expanding its deals with Germany.

Q) Critically discuss ecological impact of highways and railways projects passing

through forests. (200 Words)

The Hindu

Railways and Highways are the arteries of our nation and quintessential in our vision for inclusive and sustainable growth, but they possess ecological challenges as well, especially when they are passing through forests, as discussed below:-

Impact on Ecology:-

Deforestation and habitat destruction- Linear felling of trees for roads and rails leads to widespread deforestation, causing loss of plant species and .animal species dependent upon them.

Effects mobility - of animals especially keystone species like Lion, tiger who depend on mobility for their food. If these keystone species are harmed, it may affect survival of the whole ecosystem.

Loss of biodiversity due to accidents- Hundreds of animals are also killed in road and rail accidents, causing loss of animal species.

Increased man- animal conflict - The loss of habitat makes the animals to migrate to other places, sometimes they enter into villages thereby leading to Human-animal conflict. For example, the frequent destruction of crops have crops by elephants and Nilgai can be attributed to this phenomena.

Poaching becomes easier - development of linear infrastructure increases vulnerability of wildlife for poaching and other illegal acts (animal trafficking).

However, such infrastructures are necessary in India for its growth and development. As per the WWF's report, Asia requires about 11,000kms new transport projects in the near future. But, prevention of such linear intrusion projects through Protected Areas or other designated critical habitats is necessary. Setting reasonable speed-limit to reduce accidents of animals is also important. Similarly, certain measures taken by the forest department on the restriction of movement of vehicles in the night.

The building of rail and road are important for the inclusive development of our country, but it should not be detrimental to our long term ecological sustainability.

Topic: Prevention of money laundering

Q) The union government has announced that five hundred and thousand rupee notes

will cease to be legal tender from today (9 Nov 2016). Critically discuss objectives and

likely impact of this move on various sectors and stakeholders. (300 Words)

RBI

The Hindu

Livemint

Livemint

Livemint

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Background:

This is only the second time after 1977 that the Govt. has taken this revolutionary decision of ceasing some denominations of old currencies.

The goals of this step are:

Curbing hawala transactions.

Preventing terror funding: Especially from fake currency notes supplied through Pakistan.

Curbing organized crime( such as drug trafficking, illegal trade) being funded by this black money

Curbing fraud cases and fake currency cases.

Bringing in wealth back within Government treasure so that this money is utilized for people welfare and development.

But this step also entails certain big risks and problems such as:

Complete cashless Economy: Small shop owners and roadside vendors might be badly affected

Issue of Black money: It will still remain untreated with introduction of new 500 and 2000 denominated currency notes.

Lack of a proper Cyber Security Infrastructure: Puts the country’s financial security at greater risk.

Excessive Investment: This money in banks will chase investment avenues which may lead to situations like a bubble like the DOTCOM Bubble or 2008 Crisis.

The top Elite still remains almost unscathed: Most of their Black Money is stashed abroad which will not be affected by this Govt. move.

Impact on various sectors and stakeholders:

Real Estate – will be affected the most as most black money are stored in this sector. Now people will rush towards benami transaction law implementation that at least tax will save some money on their black money converted at last to white.

Political funding will be hit greatly.

Retail Manufactures: Their sale manufacturer will stay unaffected to the extent the amount of money they have is legal.

Drop in share market due to panic and confusion.

Encouragement to Cashless Economy

Inflation in long term can be controlled due to less black money in the market.

Agriculture sector is going to be affected the most in negative way as this income is not tax and many farmers are out of banking access.

Banking recapitalization problem faced by government itself has made difficult for the successful implement-ion of this step since condition of bank is not good for providing currency properly affecting people leading to long queue and chaos.

Immediately though hospitals, petrol pumps , railways are allowed to accept old currency still there are facing shortage of small notes like 100rs or 20 rs 50 rs.

Way Forward:

Develop Banking and Cash transaction infrastructure.

Promote More Inclusive Development.

The new currencies should be monitored adequately so as to not fall back to corruption and black marketing by using them.

Generate awareness about cashless economy specially among rural sections.

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Conclusion:

Though this step has been welcomed by all as it will hit the black marketing and hoarding, sudden announcement without providing certain time limit is affecting low end common man and proper mechanism should be placed to allay any fear of them.

Q) “Demonetisation of Rs.500 and Rs.1,000 notes has some benefits, but it cannot

stem the flow of unaccounted income to be generated in the future. Also its push to a

cashless economy is premature.” Discuss. (200 Words)

The Hindu

The Indian Express

Demonetization scheme of the government has been hailed to curb the black money being generated in the short term.

Demonetization will help in the form of:

The FICN issue will be addressed and will resolve the shadow economy bringing false inflation.

The terror funding and other allied activities relied on the unaccounted money will stop

Growing economic disparities due to such unaccounted money will decrease.

Prices of real Estate will come down.

Demonetization is a progressive step towards a clean and cashless economy.

But is not a final blow to curb unaccounted income in the long term as:

Majority of black money in India is hoarded either in real estate, gold, jewelry or in foreign bank accounts.

The tax violations on evasion can’t be controlled by issuing new series of legal tender

Corruption will continue even with the new floated currency until stringent regulations, behavioral change and policy check are not brought about.

Reasons for this step to be a major premature push to a cashless economy:

Many farmers, small vendors, daily wage workers and people in the rural areas are out of the formal banking system.

With a major percentage of accounts opened under the Jan Dhan account being dormant shows that either the population doesn’t uses these formal systems or is ill equipped to use them.

Behavioral inertia among the citizens to use electronic payment systems/e wallets/m wallets. Evident from the lukewarm response towards UPI.

Most of the formal and electronic initiatives being concentrated in the urban areas.

Conclusion:

Government has been taking steps from Jan Dhan, Payment banks, JAM trinity; UPI etc. to improve financial inclusion and take steps towards a cashless economy.

Steps should be taken that in the future retail transactions or gold transactions are conducted electronically rather than hard cash in order to check unaccounted income.

It should now focus to effectively implement these schemes to broader areas.

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Q) Post-demonetization, what challenges lie ahead for government to prevent flow of

black money again into the system? What measures should be taken once transition

into new currency is over? Critically examine. (200 Words)

The Hindu

The Hindu

The recent move of demonetization was claimed to be a "surgical strike" on black money, terror financing and counterfeiting. The move will bring a lot of benefits but at the same time, government must remain vigilant to prevent black money from flooding the system again.

Challenges ahead to prevent black money flow:-

To prevent corruption in government offices :- Petty corruption, due to lack of integrity has become part and parcel of the administration and it can be seen at the level of a police constable or a lower division clerk at a government office that needs to be addressed first before we move up the hierarchy.

To reduce time in judicial process - Due to long judicial process, the fear of law is declining and it takes an enormous amount of time in establishing conclusive proof against the guilty. So, the challenge would check the loopholes in the procedure to discipline those who deviate from the law by making punishments certain over a reasonable period of time.

Identifying the proxy transaction - The greater challenge is in the proposed follow-up action to identify and penalise those making fresh deposits during the transition period in excess of Rs.2.5 lakh. Their accounts are to be scrutinised to ascertain whether they are consistent with their declared incomes and assets. People with black money are distributing their money to their relatives, servants and other people to convert it back to white money.

Information about black money in foreign lands - Black money stashed abroad has to be brought under the tax net. Getting information over them is one big persisting challenge.

To check hoarding - The present demonetization will be replaced by new notes of 2000 & 500, which are higher currency notes, it may make hoarding easier. The government has a challenge to check such hoardings.

Measures to be taken:-

Punishing the dishonest officials - All the government official involved in corruption should be identified and punished. Especially the senior officials should be identified, as they have made a chain form higher level to lower level for the flow of illegal money. Especially, it should begin with key organisations such as Income Tax, Customs and Central Excise, Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

Cooperation of states - The scene in the States remains appalling with respect to checking corruption. State Anti-Corruption Bureaus (ACBs) are a joke in many States, for example- in one southern State, a lady officer who had given new dimensions to corruption was appointed to head the ACB. Anti-corruption departments should get appointments form central government to check such favouritism.

Protection of whistleblower - Enough provision should be made to protect the whistleblowers, who highlight the irregularities and corruptions in government departments. The present Whistleblower Act, does not make enough provisions for protection and independence of the whistleblowers.

Mobilising international cooperation - DTAAs with foreign nations need to be concluded quickly and effort needs to be made to extradite proclaimed offenders. Help of FATF, information sharing agreements with tax havens has to be done.

Increasing the infrastructure for digital transaction -Financial inclusion and digital literacy would be two corner stones for improving the digital transaction in the country. Increased push towards online transactions by imposing limit on cash holdings (as per recommendations of SIT on black money, 2014), Digital India, NOFN schemes, UPI would be crucial, but it would be successful only when poor people and people from remote locations are included into it.

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Demonetization was a positive move and to reap its benefits, government needs to remain vigilant in future too.

Topic: Linkages between development and spread of extremism.

Q) Many in the government, including some among the security forces and the media,

have claimed that recent operation on Naxalites which killed 30 cadres marked the

beginning of the end of the Naxalite movement in the country. Do you think so?

Critically comment on anti – Naxalite strategy. (200 Words)

The Hindu

Background – Naxalite/Maoist insurgency is an ongoing conflict, operated in the red-corridor regions of India. The movement started as a peasant revolt, but unfortunately transformed into insurgency threating the democracy of India. In this context, recent killing of 30 Maoists in Malkangiri district of Odisha by joint operations of Security forces of AP(greyhounds) and Odisha( Special Operations Group ) has raised a hope among security forces and media that, the Naxal movement has come to an end in the country.

Shift in the strategy: The recent action shows a shift in the strategy of security forces by adopting an attacking rather than a defensive action. Generally, the security forces retaliate to the provocation by Maoists but, it was one of the rare occasion when they were intercepted and an operation was conducted to kill them. This shows success of security forces in tracking the locations of naxalites, which was a very tough task earlier.

Tackling the ideology: But, Naxalism is more of an ideological battle than a military one, as the movement is still seen as ‘the torch-bearer of idea'(Maoism) and has support from the poor, tribals, university and college students and many other sections of the society. Also,it has radiated out to southern states of Karnataka, Kerala and TN from eastern parts of the country.

The naxal stronghold: Naxalism, still has stronghold in certain naxal-belt regions such as Dantewada, Bastar of Chhattisgarh, Jharkhand, Odisha, etc as is evident from a series of attacks on police & security forces from time to time. Also, the capacities of naxal forces should not be underestimated as they have their own small arms factories and well-established arm trails to get state-of-the-art weapons from outside India and expertise in IEDs poses a huge challenge. Thus, giving tough fight to our security forces.

The two pronged strategy – force and development: Earlier, India adopted ‘security only’ approach to deal with Naxalism, but under UPA Government shift was made to ‘Security plus’ approach, which includes stern actions by police and security forces through various operations such as ‘Operation Hunt’, ‘Cordon and Search’ and anti LWE polices to avert the groups from the areas, along with government’s effort through various social sector schemes like Integrated Action Plan, social sector hubs, skill development schemes for LWE.

Loopholes in implementation: But the situation has not reversed because there is less coordination among states in the red-corridor region. Also there has been marginal improvement in social sector policies – Integrated Action Plan was brought under planning commission, no follow up action have been taken after it was abolished. Social sector hubs to focus on schools, hospitals, skill improvement, which were envisioned as part of anti-LWE policy did not show much progress. Also, the stationing of Police forces in the affected areas is very less.

Way forward: To deal with Naxal problem, land reforms should benefit the tribal groups. Local participation should be encouraged along with economic empowerment of the local people in the form of job creation balancing the forest rights of tribal groups. Social empowerment in the form of quality education, free insurance cover, vocational skill training should be done. Though the movement has transformed its original form to destabilizing operation, if central and state governments eliminate the root problems (mainly land and development issue), its radiating nature could be averted.

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Q) Analyse the causes of weakening of Left Wing Extremism in India. (200 Words)

The Hindu

Background – Naxalite/Maoist insurgency is an ongoing conflict, operating in the red-corridor regions of India. The movement started as a peasant revolt, but transformed into insurgency threating the democracy of India. In this context, recent killing of 30 Maoists in Malkangiri district of Odisha by joint operations of Security forces of AP(greyhounds) and Odisha( Special Operations Group ) is making analysts believe that LWE is weakening in India, due to following causes :-

Failure of Naxalites to help their supporters- Many times, naxalites failed to protect their supporters against the atrocities of landlords and police attacks in the villages. This made them feel harassed and they started surrendering to the government authorities.

Shift in strategy – For example in Andhra Pradesh, the police’s strategy to counter Naxalites in the 1980s and early 1990s relied heavily on “cordon and search” operations under which locals were made to come to the village centre where suspected Naxalite sympathisers would be harassed and warned. And the innocent ones were supported by police, but it was futile. Then, a shift to this strategy was made and the Andhra Pradesh government adopted a multi-pronged strategy in the mid-1990s, using a combination of “people-friendly” policing and the elite Greyhounds force on the one hand and putting a rehabilitation package in place to encourage surrenders. This included an instant relief of Rs.5,000, and a promise to cut down repeated police summons and fast-track legal processes.

Developmental works – It is reported that due to enhanced beneficiaries of government schemes and programs in red corridor, there is decline of extremists. The Forest Rights Act 2006, Public distribution system, Direct benefit transfer, District mineral foundation, Van Bandhu Kalyan Yojana, penetration of educational and hospital facilities, etc have been instrumental in reducing LWE.

Modernization of forces – In many parts of Chhattisgarh and Jharkhand uses drones and satellite imagery to keep watch on Naxals leading to weaken the left wing extremism. The states affected with Naxal movement have raised a special task force exclusively to deal with the extremist states and have been successful in putting them in control. The Greyhounds raised by the Andhra Pradesh Police have been instrumental in containing the extremism.

Weakening of leadership– Since last one decade there is decline in top most leadership and their quality to influence large mass. The leaders realized that their violent means weren’t being heard and thus they surrendered and took the pen.There has been also lack of funds with naxalites and there has been also dip in interest among ideological university students and intellegentia.

Support of local people – Tribal uprising like Salwa Judam, in which tribals were equipped with arms by the Chattisgarh police to prevent the spread of Naxalism in the village, was possible only with the support of local people. However, this movement was later disbanded by SC, citing it as unconstitutional. But this way, local people are coming up against the naxal problems.

Strengthening of democratic institutions– The State and its machinery have been successful in taking democracy to the grass root level by encouraging more tribals in the region to take up the leadership role in governing their people through PESA, 73rd amendment act, etc. This has helped in bringing naxalites into the main stream of the society.

The movement has transformed its original form to destabilizing operation, if central and state governments eliminate the root problems (mainly land and development issue), its radiating nature could be averted.

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Q) Do you think India is ready to go fully cashless today? Critically examine. (200

Words)

Livemint

Background:

Cashless economy refers to a situation where flow of cash is non-existent & all transactions are done through electronic channels such as debit cards, credit & debit cards, mobile money transfers, immediate payment services etc.

The government along with the reserve bank has initiated policies to transform Indian economy to a cashless economy.

Readiness of India for a cashless economy:

Partial Demonetization: It has led to upsurge in electronic transactions, especially mobile money transfers.

Bank Accounts: Quantitative success of PMJDY campaign in opening an account for almost every household in India.

Mobile Penetration: This has crossed over 100 million connections.

Government Measures: Ambitious payment interfaces such as UPI & NPCI.

But the challenges to an immediate cashless economy are huge:

Poor Cashless Payment Infrastructure: Especially in rural, Suburban and Tier 2 cities of India, most of shopkeeper, vendor, employers don’t have electronic machines to do cashless payments and they even don’t know how to operate it.

Security Issues: Recently, the details of millions of cards have been compromised by ATM network. Poor cyber security can lead to threat to Indian economy and it is against individual ‘s interest.

Lack of Awareness: People are not fully aware about cashless transactions that is, how to use it and what benefits are.

Poor Internet Connectivity and Digitization: Internet connectivity is poor in rural India and some urban sectors. Private Internet companies are also not able to expand in rural India due to lower profits ineffective policy implementation.

Black Money and Tax Evasion: People do payment in cash form in order to hoard black money and for tax evasion.

Way Forward:

Govt’s move towards Block chain technology to curtail paper currency is a welcome step.

should make effective policy to digitalize incentive payments like cash back schemes and motivate people through tax rebates.

It will be better if private players are given more incentives to operate and provide internet connectivity in rural areas as well.

Cyber security infrastructure needs to be strengthened.

Financial Inclusion and awareness through the JAM trinity and other schemes needs to be given a major Push.

Conclusion:

India is still in a nascent stage to go fully cashless but it is definitely possible as seen in the case of Sweden

But in order to fully realize the potential of cashless economy, first an enabling environment needs to be created through the concerted efforts from all the stakeholders – Banks, Govt, State governments, civil society, and Private players & among others.

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Topic: Linkages of organized crime with terrorism

Q) Discuss how would demonetization of Rs 500 and Rs 1000 notes impact terror

financing. (200 Words)

The Hindu

Background – As per a study done by the Indian Statistical Institute, Kolkata, in 2015, at any given point of time Rs. 400 crore worth fake notes were in circulation in the economy. According to the National Crime Records Bureau (NCRB), in 2015, various law enforcement agencies seized 1,78,022 pieces of fake Rs 1,000 notes.

Fake Indian currency notes (FICN), which are circulated in the Indian economy are mainly pumped through illegal/crime network in the South and Southeast Asian region enroute Bangladesh, Nepal, Thailand, Malaysia, Sri Lanka and the United Arab Emirates (UAE) as per CBI and NIA. These are used mainly for terror financing, human & drug trafficking, arms & cattle smuggling. Thus, demonetization of Rs 500 and Rs 1000 currency notes was a step taken to put a check on the unaccounted wealth, fake currency notes in circulation. This move impacts terror financing as discussed:

Fake currencies will become valueless – Large amount of fake Indian currency notes, which were printed in Pakistan as per the Intelligence Bureau report would become valueless as they cannot be used further. Till now, these fake currencies were used for financing terrorist groups, originating in Pakistan.

More security features – The new notes which will be circulated in future, will have new security features and it would take a long time/would be hard for the terror groups to print an equivalent fake currency with the same security features, causing financial crunch for terror groups.

Indigenous raw material – Till now, the supplier of raw currency, the ink and the silver thread were same for India and Pakistan. So, it was easy to copy, misuse the raw material for fake currency supporting the terrors groups. Use of indigenous raw material for future currencies will restrict the scope of duplicating and thus financing to terror groups.

Check to Hawala transaction – Terror funds were channelized through illegal hawala transaction, operating underground. Demonetisation has put check to the flow of money through such transaction, chocking one of the major financial source of the terror groups.

Thus as mentioned above, funding for arms, smuggling, drug trafficking, illegal trade, etc helping terrorist organisation will take a blow since all the money will get back to bank and from there it would be easier to monitor the currency. The money hoarded by terrorist groups in big currencies has become a piece of paper now.

The sudden decision by the government has caused short term problems but in long run it will help in curbing terrorism, black money generation, hoarding, etc. by blocking illegal access to Indian rupees. It will help in checking corruption, real estate prices, gold prices and thus will benefit poor and middle class people too.

Topic: Security challenges and their management in border areas;

Q) Critically analyse causes and consequences of recent ceasefire violations along

LoC. (200 Words)

The Hindu

In 2003, ceasefire agreement was signed by India and Pakistan and mutually agreed that the ceasefire

would be enforced along the lines of Line of Control (LoC), International Boundary (IB) and Actual

Ground Position Line (AGPL) to reduce aggressive actions and temporary stoppage of war.

But recent attacks either side has raised on the inviolability of the agreement

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Causes

1) Continous attacks by Pakistan in the Indian regions and military bases – Pathonkot attack, Uri

Attack and consequent surgical strikes as a retaliation measure

2) Failure of negotiations at diplomatic level and no concrete stance globally to handle Pakistan’s state

sponsored terrorism. This is mainly seen as Kashmir disputed issue between India and Pakistan

3) Military support of China to Pakistan

Consequences

India may finally gain in attacking Pakistan forces by maintaining its security and integrity of the

territory. But there are many issues which are counter-productive upon ceasefire violations

1) Increase in number of cease fire violations may threaten the high density of civilian population

(compared to Pakistan) in the border villages

2) LoC trade, farming in the border villages, tourism may get substantially affected

3) It may result in loosening of confidence of villagers and result in agitation

4) Loss of soldiers and it may escalate into a war, which can further intensify the present condition.

It is high time, that both the countries should not continue violating the ceasefire agreement and India,

being a country, for abiding rules and laws, should take a lead in restating the ceasefire agreement and

start looking the issue diplomatically and politically and restore peace in the border line.

Q) How does Cross-border tensions between India and Pakistan affect the lives and

livelihoods of civilians along the border? What responsibilities does both countries

have towards lives of these people? Critically discuss. (200 Words)

The Hindu

For the past 70 odd years, Both India and Pakistan have been in a state of perpetual hostility.

Due to this the major sufferers have the civilians along the border in the form of:

Casualties: With no proper shelter facilities, civilians get injured at times die, the number jist increases with time

Trade: With disturbance, their livelihood, economic activities get affected, satisfying their basic necessities become difficult.

Punjab is located near the “Golden Crescent” area of Af-Pak narcotic trade. 70% of Punjabi youth are drug-addicts. India can’t reap its Demographic dividend if youth is addicted to drugs.

Terrorism: Anti India Jihadist groups who consistently tries to push terrorist to India through its border areas.

Education of children also gets affected as school gets closed

Psychological disturbance: Disturbed times affect them mentally, they consider government to be incapable of settling the issues, brings bad name to the government and our armed forces.

Migration: Unemployed, with their shelters getting dilapidated, they migrate to cities, unable to get employment; they leave in poverty, become burden on the cities.

Responsibilities:

Ratify 4th Geneva convention to safeguard civilians

Both to ensure resumption of trade without any hindrance. But it will involve mutual trust and responsibility towards the other.

Both India and Pakistan should involve and continue political and diplomatic level negotiations. But it looks bleak in the current situation of high political hostility.

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Tier II (informal negotiations) should be encouraged from both sides. This step needs to be taken without coming into much limelight of media and public as it will unnecessary create distractions.

Way Ahead:

Creation of underground shelters, to help them stay protected during firings.

Compensation for loss of lives and properties should be provided immediately

Providing better medical facilities for emergencies.

Ensure proper rehabilitation of these civilians who have lost their homes, provide them with proper compensation.

Increase diplomatic engagement so as to ensure peace and stability.

Conclusion:

Both of the countries must consider the effect of such cross border tensions on civilians and should contemplate a comprehensive mechanism to protect them

It is time to focus on Neighborhood First and Gujral doctrine.

Q) Because of demonetization, people in India are being forced to make digital

payments. It is said that without proper precautions and security policies, the highly

reactive nature of cybersecurity leaves us vulnerable to cyberattacks. Is it safe to

utilise new payment platforms? How government and companies should mitigate

cyberattacks and minimise its damages arising out of this situation? Examine. (200

Words)

The Hindu

The recent demonetization move by the central govt has led to a surge in the number of digital payments

platforms like PayTM,Oxigen,etc,

It is safe due to :

a) Many companies like PayTM uses 128-bit encryption technologies for storing information, which

takes about a hundred trillion years to crack a password.

b) Usage of Digital signature and dynamic IP protection by most e-commerce websites to provide

security to their online customers.

It's unsafe due to:

a) diversifying nature of hacking methods including creation of fake websites,payment platforms,etc.

b)lack of digital literacy and its safe usage among the Indian masses.

c) India's poor record on cybersecurity as is evident from recent financial data breaches.

Loopholes and way forward

1) Banks and e-commerce companies

a) Obsolete OS in ATMs which no longer support any security patches makes ATM recalibration across the

country should take place.

b) Dedicated fraud prevention department with highly qualified expertise to predict suspicious behaviour.

c) Also check on their fake apps and websites and sensitize the customers on the real outlook and

procedures on these apps to thwart fraudulent cases

2) Government

a) Lack of National Cyber security strategy – Though some work on Indian Cyber Crime Coordination

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Centre (IC4) and signing packs with the US, UK are available. Government need to come up with Cyber

Security Plan and also strengthen CERT-IN

b) Focus on Information sharing – Both banks and government should build a Joint Cyber Information

Sharing Center to provide accurate and fast communication of cyber threats to the banks.

c) Investment in cyber security – government should allocate adequate on this and also incentivise the

institutions in the form of tax credits for adopting cyber practices, training of security analysts and R&D

d) Education – Create awareness on security risks and in the long term, courses on cyber security and

related infrastructure should be build up.

It is indeed that digital economy has varied promises to counter black economy, but pitching for a

cashless society before beefing up cyber security is like putting the cart before the

horse. Hence strengthening the cyber security features at all levels is the need of the hour.

Topic: Various Security forces and agencies and their mandate

Q) Critically analyse readiness and capability of the Indian Air Force (IAF) in securing

India’s security interests. (200 Words)

The Hindu Indian Air force ( IAF ) is a formidable wing of the Indian Defense forces that can help in safeguarding

India's security interest due to its being agile and its operation is in the High Skies that makes it lethal .

India's readiness and capability to face any challenge with respect to is apt in the present scenario as

analysed :

1) FIGHTER SQUADRON : There is an existing fleet of 272 Sukhoi - 30 MKI, HAL tejas , SEPECAT -

Jaguar and 36 Rafales jets would help to add strength that have the ability to face threats from the sky.

2) AIR DEFENSE : This is also followed by the recent deal to acquire S-400 air defense system from

Russia make it counter any air strike from enemy forces .

3) AIR TRANSPORT : India possess a wide range of aircraft's like Boeing C-17 ,Lockheed C-130 J that

have the capability to transport materials in large quantities to any location either during natural

disasters or any other crisis,helping her to enhance the preparedness .

Although ,India is prepared with aircraft possessing strategic strike capability but there is a scare of

professional experts to utilize the equipment's effectively ,which is mainly due to the shortage of trainer

aircraft and lack of Indigenous replacements making it to depend on foreign imports for the same.

Government of India should take notice on this drawback and address it by ensuring research &

development in Defense technology and giving a boost to "transfer of technology " and make

equipment in India as a part of " make in India " initiative to safeguard the security of the Nation.

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Q) “From a statecraft point of view, the IAF, with its flexibility and versatility, has

varied options to offer policymakers ranging from coercion, deterrence, signalling,

extending influence and providing succour and relief.” In the light of this statement,

discuss what IAF can offer policymakers to strengthen nation’s security. (200 Words)

The Hindu

Due to changing nature of warfare over the last couple of decades — hybrid warfare, sub-conventional warfare and proxy war, etc, - the armed forces across the world are struggling to keep pace with these changes. In this context IAF ( Indian Air force ) is one of the formidable unit of the Indian defence that can come as a handy for its flexibility in operation in various fields and it can offer following role to the policymakers, for strengthening nation's security :-

Joint operations - The Indian Air Force has been phenomenal in supporting the Army in the de-escalation of the Kargil war of 1999 and similarly the recent "surgical strike” on terrorist launch pads across the LoC, which shows the supporting role it can play coordinating with other wings of the defence forces. The IAF can also help the policy makers to quickly deploy the air power even from the sea from the decks of the INS Vikramaditya, thereby enhancing the security strength during a conventional war.

Relief carrier - The aircrafts like - C-17 of Indian Air force are capable of heavy lift, which have been effective to transport relief material to the places affected due to natural disaster or to lift people from disaster hit locations, etc . This shows the humanitarian assistance, IAF can offer during disaster management.

Reconnaissance - This is one of the greatest assets IAF possess which can help the policy makers for reconnaissance operation in the high seas and rough terrain like the Himalayas .The Boeing P-8i class have been used during the search operation of the missing commercial airliner MH-370 in 2014.

Deterrence with accuracy - With the advancements in fundamentals like reach, accuracy, lethality, command & control IAF is going to play a major role in enhancing national security operations in future. Aircrafts with modern technology like Su-30 are capable of carrying on multiple operations like attacking strategic targets, protecting air space within hours of notice. This acts as a deterrence for enemy countries and sends a strong message that IAF is capable of defending the national security.

But, before visualising any aggressive support from IAF, we need to address the challenges being faced by IAF. At present IAF has 33 squadrons, experts argue for minimum of 42 squadrons. We do not have intermediate jet trainer (IJT), owing to the un-kept promise of Hindustan Aeronautics Limited to produce the Sitara IJT Lack of development of indigenous aircraft industry is also hurdle full fledge realisation of Indian air force.

However, with the induction of new aircrafts like Tejas light combat aircraft and Rafael the powers of IAF are going to increase further allowing the policy makers to be more confident and assertive in their international relations as well as dealing with domestic mishaps.

Topic: Role of external state and non-state actors in creating challenges to internal security

Q) Do you think India should rethink its no-first-use nuclear doctrine? Critically

discuss challenges and consequences of such policy change. (200 Words)

The Indian Express

Background- For India, Nuclear weapons are political weapons and not weapons of war fighting and that their sole purpose is to deter the use and threat of use of nuclear weapons by India’s adversaries. India declared its nuclear doctrine in 2003 and its features are:-

Building and maintaining a credible minimum deterrent;

A “No First Use” posture; nuclear weapons to be used only “in retaliation against a nuclear attack on Indian territory or on Indian forces anywhere”;

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Nuclear retaliation to a first strike will be “massive” and designed to inflict “unacceptable damage”.

Nuclear retaliatory attacks to be authorized only by civilian political leadership through the Nuclear Command Authority.

Non use of nuclear weapons against non-nuclear weapon states.

India to retain option of retaliating with nuclear weapons in the event of a major attack against it with biological or chemical weapons;

Continuance of strict controls on export of nuclear and missile related materials and technologies, participation in FMCT negotiations, continued moratorium on testing;

Continued commitment to goal of nuclear weapon free world, through global, verifiable and non-discriminatory disarmament.

India should maintain its NFU (no-first-use) doctrine, as it has helped India in gaining many benefits at international level. It was due to India's nuclear prudence, that Japan has recently signed nuclear deal. So, we will discuss below pros and cons of revising NFU policy.

Why India should not revise NFU?

Adversary might use their weapons first- The belief that India will use nuclear weapons first, the adversaries has incentives to beat India and use their weapons first.

Will lead to nuclear arms race - If India shifts to first use policy, then it will lead to competition and adversaries may seek to develop and deploy more sizeable and quickly useable nuclear forces/ weapons. This will lead to nuclear arms race, as happened at the time of cold war. It would be against India's commitment to support nuclear disarmament and will threaten regional stability.

India might attract sanctions again- India’s strategic restraint posture has provided major gains internationally, including the lifting of economic sanctions and the removal of technology denial regimes, civil nuclear cooperation agreements, and accommodation in multilateral nuclear export control regimes. Most of these will be frittered away if India opts for first use and India's desire for UNSC seats will also be compromised.

India will need more preparation - If India plans for first use policy, then preparation and expenditure would be required for complex command and control and sophisticated intelligence, surveillance, and reconnaissance systems, which targets to hit first, etc. But, at the same time we need to consider - what if intelligence regarding an imminent first strike is wrong? The (non)existence of weapons of mass destruction in Iraq is a good example. It will go against India.

Above points reflect the challenges and consequences India need to face if it goes for revising its NFU posture.

Why India should revise NFU?

India needs to absorb a nuclear attack - NFU is not good for war like situation, because it requires India to first absorb a nuclear attack before responding. It may result in unacceptably high initial casualties and damage to Indian population, cities, and infrastructure.

Pakistan's use of Tactical nuclear weapon - Massive retaliation is not credible, especially against a tactical nuclear strike on Indian forces on the adversary’s own territory. Pakistan is increasing its nuclear arsenal with tactical nuclear weapons, in this background India should revise its NFU posture.

Determining major chemical and biological strike is complex - India maintains to retaliate through nuclear weapons in case of major chemical or biological strike. But it would be difficult to determine what constitutes a “major” chemical or biological strike. Also if such strikes are non-state actors, then retaliating through nuclear weapons would be illogical.

Way forward - Deterrence is ultimately a mind game. The essence of deterrence is that it must not be allowed to break down. India’s nuclear doctrine must enhance and not undermine nuclear deterrence. India

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is a nation which follows Mahatma Gandhi's principle of Ahimsa and India's aspiration for world peace and nuclear disarmament should be given priority in place of revising NFU.

Q) It is said that the current unrest in Kashmir is a “home-grown” popular uprising

which cannot be blamed on Pakistan or outsiders. Do you agree? What would be the

consequences of continued clampdown on civil liberties in the Valley for India?

Critically comment. (200 Words)

The Hindu

Background - In Kashmir, the Indian Army is perceived, almost unanimously, as an occupying force, and people are fed up with the controls, crackdowns, searches, arrests, beatings, and torture and pellet guns. The most common graffiti found around the towns and villages of Kashmir is “Go India, go back”. The separatist tendencies have been prevailing in the Kashmir valley since the time of independence and involvement of Pakistan in supporting such tendencies and terrorism cannot be ignored. However, other factors are also responsible, which are giving it colour of “home-grown" popular uprising as mentioned below:-

Lack of employment - Lack of employment opportunities in Kashmir is making Kashmiri youth get easily mobilised by anti-social elements.

Economic growth - Due to continuous unrest and political instability, the economic growth of Kashmir has slowed down, due to which Kashmiris feel isolated and their growth and development is also getting affected.

Trust deficit towards government - Use of AFSPA, suppression and harassment by forces, human rights violation, frequent detention, arrest, custodial torture by the armed forces, etc are leading to the anger and has caused trust deficit among people towards Indian government. People are also dissatisfied against the state government for its poor performance and policies.

However, following external factors are also responsible for the unrest in Kashmir:-

Border Disputes: Unresolved border issue with China and Pakistan has handicapped India from providing a political solution to the crisis.

State Sponsored Terrorism: Frequent infiltration of terrorists sponsored by the Pakistan has destabilized the region apart from recruiting the youth to such organizations by tapping their grievances.

As per Kashmiri editors, Kashmir in short, has been turned into a kind of open jail due to clamping down of civil liberties. If it is continued, it will have following consequences:-

Mobilisation by terrorist organisation - The unemployed youth will be mobilised by terrorist outfits for creating unrest in Kashmir and across India. Militants are already playing a role in spreading anti-India sentiment among the masses, which will further intensify, if not checked.

Anti- India support will increase - The continuous clampdown on civil liberties in the Valley would further alienate the masses from the Indian state and can even lead to social unrest leading to bloodshed and breeding Anti-Idnia sentiments.

International pressure will increase - Continuous unrest in Kashmir will attract international criticism and pressure to resolve the issue. It will dent India's image in the backdrop of aspiring UNSC membership.

More loss to the nation - The unrest is causing loss to the whole economy which can be accounted from agriculture, horticulture and tourism of the state. The growing anger among people and their support to militants could pose a security challenge to our forces.

India should reach out to the Kashmiris and should take confidence of the religious clerics to weed away youth away from violence and at the same time, the state should ensure that the programs are implemented in a transparent manner to remove the hurdles of corruption that hinders development. Iincreasing economic development, employment for the Kashmiri youth to check the radicalization of youth.