RBI  showed  maturity in avoiding being swayed by forex markets

Mains Paper: 3 | Economy
Prelims level: Liquidity in Banks 
Mains level: RBI to providing liquidity is welcome steps for the short end of the yield curve

Introduction 

• The Reserve Bank of India’s (RBI) monetary policy committee (MPC) met at an interesting time for the markets and the economy. In recent weeks,
• The financial markets have been facing continued rupee depreciation, high oil prices, falling equity markets and tight conditions in the money and bond markets. 

How to counter inflation?

• The RBI should take its primary direction from the expected trend of inflation, and since it expects inflation to rise over the next few quarters, one would expect hawkishness.
• The MPC did raise rates by a cumulative 50 basis points while maintaining a “neutral” stance of policy. 
• The policy stance was changed to “calibrated tightening” though the benchmark repo rate was left unchanged. 
• Why would RBI at once sound more hawkish while surprising dovishly with a rate pause?
• The RBI has marginally softened its inflation forecast. 
• The previous forecast of inflation at 5% by June next year, the central bank now expects inflation at 4.8%. A softer trajectory of food inflation appears to be the key change. 
• The higher announced minimum support prices for crops, it appears that food prices have not risen as much as previously feared. 
• In both rural and organized sectors, wage growth has remained contained. As a result household inflation expectations have moderated.

What are the trends going on the financial markets? 

• Normally, a depreciating currency is seen as expansionary as it tends to encourage export demand. 
• It makes weaker global trade and flows that is driving currency weakness, that is, the currency depreciation is having a contractionary effect. 
• The fall in reserves this year has also led to monetary tightening. Rising oil prices have also counteracted any improvement in exports.
• The net impact of global factors has been more towards contraction than expansion.
• The bond yields have been rising in recent months. 
• Since April, the three-year AAA corporate bond yield has risen by nearly 1.5 percentage points and is close to 9%. 
• This is much higher than what is suggested by the 50 basis points increase in the repo rate in the same period. 
• Money market conditions further tightened in September after the defaults by various IL&FS group entities, leading to rising rates and reduced availability of funding.

Should RBI have hiked rates to support the currency? 

• If rates were so important to the exchange rate, the strongest currency in the world should be the Argentinean Peso, where the benchmark interest rate is 60%. 
• Rupee is the weakest currency in the world this year. 
• RBI also tried and failed at an interest rate defence of the currency in 2013, which would surely be in its institutional memory. 
• The MPC should react to currency to the extent that it affects inflation and it has shown great maturity in avoiding being swayed by the forex markets in its policy decision.
• For bond markets the policy provides a welcome respite. 
• The 10-year benchmark yield has dropped by about 7 bps on the day, while the money markets have seen yields soften as much as 30 bps. 
• Both the rate pause and the commitment of RBI to providing liquidity are welcome steps for the short end of the yield curve. 
• This part of the curve is also less sensitive to global and fiscal factor and investors should remain focused here.

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UPSC Prelims Questions: 

Q.1) With reference to Global Foreign Exchange Committee, consider the following statements:
1. It is a forum of central bankers and experts working towards promotion of a robust and transparent forex market.
2. It has been established under the aegis of World Economic Forum.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:  A

UPSC Mains Questions:
Q.1) Should RBI have hiked rates to support the currency? Give your arguments in brief. 

Scalding oil, sliding rupee

Mains Paper: 3 | Economy
Prelims level: current-account deficit 
Mains level: Improvement in CAD

Introduction 

• Except for the US, most economies of the world are in crisis mode.
• We live in a highly globalised and an instantaneous transmission world.
• We live in a world where politics and economics inter-mingle and each component accuses the other for causing a mishap, or a crisis.

Important highlights about the CAD crisis 

• Today, the crisis in question is a rupee current-account deficit (CAD) crisis.
• An improvement in CAD can either occur through an improvement in exports or a reduction in imports.
• Exports is money coming in, and that is “good”. Import is money going out, and that is “bad”.
• Exchange rate is a price — a cheaper rupee helps exports, and hurts imports.
• A cheaper currency, especially a fast depreciating one, hurts confidence, sentiment, and investment flows (both domestic and international) and is not much of a good.
• This is all basic macro, and well known.
• Good policy is the art of balancing the various currents to achieve a harmonious balance.
• Economists and analysts are also human. They make genuine and honest mistakes.
• As humans, they also possess ideologies and are prisoners of their “political” outlook.

Examine some recent policy measures in India

• Emerging economies, especially fast-growing ones like India, need capital inflows to finance their investments.
• The CAD is also equal to the gap in savings and investment.
• The “high” GDP growth over the years helps pay for the borrowing of savings from abroad.
• We will look at measures from the angle of money in (good) and money out (bad).
• This list of economic mishaps for 2018 starts with the imposition of a 20 per cent long-term capital gains tax in the 2018/19 Budget.
• This increase was a reversal of longstanding 14-year policy.
• As is obvious, if you do not have capital gains, you will not obtain capital gains tax revenue.
• For the present fiscal year, capital gains have been zilch.
• In late August, the Ministry of Finance (MoF) announced measures to arrest import growth.
• The 19 items for which import duties were hiked included items such as air conditioners, refrigerators and washing machines and the total value of these imports in 2017/18 was about Rs 86,000 crore.

Effects on the price of oil

• The international price of oil declined from $ 110 a barrel in May 2014 to an average of $50 to $60 in each of the last three fiscal years.
• Despite large international price fluctuations, the government kept the domestic oil price broadly constant.
• On a base of 100 in 2012, the CPI for petrol averaged the following in the last four years — 108 in 2014/15, and 99, 103, 108, and 119 in the present fiscal year (April through September).
• So at the time of the election in May 2014, CPI for petrol was 115.
• The CPI for petrol is estimated to have averaged 126 in September 2018 or a mere 10 per cent above the 2014 election price.
• Oil price control, again:
• On September 4, the government announced an excise tax reduction of Rs 1.5 per litre.
• An additional Rs 1/litre reduction in the price of oil is to be contributed by oil companies.
• This loss to the oil companies is expected to yield Rs 9,000 crore.
• In less than 24 hours since the policy was announced, the market cap of oil companies was reduced by Rs 1.26 trillion.
• It is sound fiscal fundamentals to keep the domestic oil price relatively constant amidst international turbulence.
• The original sin was likely committed by the RBI in keeping real interest rates very high in 2017.
• The GDP is estimated to be 2,900 billion in 2018. Each additional 1 per cent of CAD is $ 29 billion.

Where will this money come from?

• Foreign inflows into the domestic debt market was $20 billion in 2017; this year the flow is a negative $7 billion.
• Oil companies and other investors want predictable, reality-based policies, not inducements to volunteerism.
• The Swiss-based Bank of International Settlements publishes, for more than 60 countries, a monthly estimate of the real exchange rate (REER).

Way forward 

• In India, REER averaged around 92 in crisis year 2013 and exports (manufacturing and services) increased at a 6 per cent rate.
• • In 2018 (to date) the REER has averaged 103 and exports have increased at a near 20 per cent rate.
• Two simple facts emerge from these “simple” data.
• REER levels do not seem to be associated with either exports or the desirability of exchange rate change.

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UPSC Prelims Questions: 

Q.1) Which one of the following is the largest contributor to India‟s current account deficit in 2017-18?
(a) Manufacturing trade deficit
(b) Gold imports
(c) Remittances deficit
(d) Oil imports
Answer:  D

UPSC Mains Questions:
Q.1) What are the Effects on the rising of oil price in Indian market? 

Going Green, Bottom Up

Mains Paper: 3 | Environment 
Prelims level: Paris climate agreement  
Mains level: Climate Change effects 

Introduction 

• Globally, climate change has started to take a heavy toll.
• The California fires, the heat wave in Europe and Asia, and the droughts in East Africa bear testimony to this.
• In India, severe floods and random variations in weather have caused significant loss of life and property.
• There is a lot more awareness and intent on show with regular discussions and nations pledging to cut down on greenhouse gas emissions.

About the GCAS program 

• The Global Climate Action Summit (GCAS) 2018, in San Francisco, was a crucial exercise in mobilising key stakeholders and urging them to go “further and faster”.
• While the Paris Agreement laid down the marker, GCAS 2018 challenged us to “step up” a level higher.
• It provided a perfect opportunity to review the progress achieved thus far, recognise the roadblocks and gear up for increased commitments.
• Secondly, the summit was unique in that it secured participation of leaders from cities, states, environmentalists, corporates, investors and NGOs, that is “non-state actors”, on a mass scale, for the very first time.
• An equally refreshing change was the focus on how climate change has impacted women and the steps needed for their empowerment.
• Third, “Walk the talk” dominated the agenda with the summit showcasing real people and their achievements — people who have successfully implemented plans to reduce carbon footprint.
• President Donald Trump’s sudden decision to withdraw from the Paris Agreement had created a lot of uncertainty, with the US being a major carbon emitter.
• Last but not the least, GCAS 2018 also helped cement India’s credentials as a climate action leader.

Conclusion 

• It showcased some great work happening in India, by both industries as well as local governments.
• Innovations such as Heat Action Plans, energy conservation building codes, electric vehicles and solar pumps for farmers also bear testimony to India’s efforts to cut down carbon dioxide levels.
• The movement against climate change is now clearly beyond individuals and countries.

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Prelims Questions: 

Q.1) Consider the following statements regarding CITES convention:
1.    It aims at in-situ conservation of wild animals and plants.
2.     It is legally binding on the parties to the Convention.
3.    It was recently adopted at the Paris climate conference.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer:  B

Mains Questions:
Q.1) What is the Paris climate change agreement? What are the aftermath effects after withdrawing agreement by U.S. President?

(VIDEO) India-Russia Eternal Friendship : Rajya Sabha TV Big Picture Debate

Topic of Discussion: India-Russia Eternal Friendship : Rajya Sabha TV Big Picture Debate

Next steps at Gir 

Mains Paper: 3 | Environment   
Prelims level: Asiatic lions
Mains level: A geographically separate population of Asiatic lions needs to be created 

Introduction 

• The magnificent Asiatic lion is under threat. 
• Twenty-three lions have died in as many days in the eastern part of Gujarat’s Gir sanctuary. 

What are the matters for concern?

• While mass mortalities in wildlife are always a cause for concern, this case is even more worrisome as the big cat population in Gujarat is the last of the Asiatic lions in the wild.
• In 2013, the Supreme Court had issued an order that lions from Gujarat be relocated to the Kuno sanctuary in Madhya Pradesh as a check against the threat of epidemic. But even wild animals are subject to State politics. Gujarat has been unwilling to part with its lions, calling them “its pride” in an affidavit.
• The series of deaths, preliminary reports said that the cats have been killed by disease, most likely to be infectious. Some others have died due to poisoning and infighting. 
• On October 3, the Supreme Court, noting that the death of so many lions was a serious matter, asked the Central government to look into it.

New-age conservation

• The Supreme Court had said, “Asiatic lion, it has been noticed, has been restricted to only one single habitat, i.e. the Gir National Forest and its surrounding areas and an outbreak of possible epidemic or natural calamity might wipe off the entire species. 
• A smaller population with limited genetic strength are more vulnerable to diseases and other catastrophes in comparison to large and widespread population.
• The court also noted how 30% of the lion population in Tanzania’s Serengeti was killed due to an outbreak of canine distemper, a viral disease that affects animals. 
• Gujarat’s response to this was that lions are now spread over the Greater Gir region and this reduces the threat.
• It has also had an intense, managerial response to the disease when ill, lions are routinely picked up, medically treated, and then released.

Lessons from past events 

• When wild animals go extinct locally, they are reintroduced as in the case of tigers in Sariska, Rajasthan. 
• When hungry, they are fed artificially, and even provided salts as supplements, an example being the Hangul (Red deer) population in Dachigam, Jammu and Kashmir. 
• In other parts of India, wild animals are funnelled through artificial trenches, barriers and fences. This is wildlife conservation in the age of man, where protected areas sometimes resemble zoos.
• The most flexible of conservationists would agree that intensive artificial medical treatment of wild animals does not augur well for long-term sustainability. 
• The role of wildlife managers should be to reduce unnatural threats, not unnaturally prolong life. 
• Gujarat has done a good job of conserving its lions, it should also turn its attention to reducing the drivers of disease, which includes controlling feral dog populations.

What are the problems with metapopulations?

• Gujarat submitted before the Supreme Court that one of the reasons it did not want to part with the lions was because there are metapopulations in the State. 
• Metapopulations may be geographically separate but have interactions and an exchange of individuals. 
• Gujarat had said to the Supreme Court, “Current Asiatic lion population is not a single population confined to one place.” 
• It consists of “metapopulation spread over several locations within the Greater Gir Region”, adding that “good conservation practices and intensive wildlife healthcare, has lead to epidemic free regime”. 
• These areas are connected to each other and this does not address the main concern of creating geographically distant populations.

Way forward 

• Gujarat should work towards colonising new habitats outside the Gir landscape within the State. 
• Wildlife conservation concerns itself with maintaining ecological processes and reducing threats to endangered species. 
• It does not entail treating wild animals for disease (in the way domestic animals are) as this can go against the processes of natural selection.
• Treating wild animals appears to be a caring thing to do. 
• It is not conducive to the ‘natural’ process of life and death, and ultimately compromises immunity. 
• There is no getting around the fact that a geographically separate population of Asiatic lions needs to be created. 
• A good track record for lion conservation does not in any way preclude a good long-term strategy.

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UPSC Prelims Questions: 

Q.1) Share Share Asiatic lion is the state animal of which of the following states? 
A.    Rajasthan 
B.    Haryana 
C.    Punjab
D.    Gujarat
Answer:  D

UPSC Mains Questions:
Q.1) What are the steps needed to be taken to conserve Asiatic lions?
 

The morning after

The morning after
Mains Paper: 3 | Economics 
Prelims level: IL&FS board
Mains level: Government, and new IL&FS board, need to clean up the mess and fix accountability

Context 

• The government stepped in and took control of the infrastructure conglomerate, Infrastructure Leasing & Financial Services or IL&FS, sacking the board and appointing a new one. 
• The government in a company in the form of superseding its board in which it is not a direct stakeholder has been justified in the interests of financial stability and the adverse impact of the collapse of such an institution on the capital markets. 
• The government officials and a regulatory chief will now have to finalise a restructuring plan or a roadmap for the debt laden group and ensure an orderly winding down.

Important highlight of the IL&FS balance sheet 

• Parallels have been drawn between the government intervention in the case of IL&FS and that of Satyam Computer Services in 2009 after the promoter confessed to having fudged the accounts. 
• The group’s liabilities top Rs 91,000 crore is much higher than the burden in Satyam’s case and spread over more than 160 group companies.
• Globally, there have been models like this one where an institution acts as an infrastructure developer and as financier too, but it is fraught with risk given the high leverage. 
• Those risks are amplified in India because of frequent policy changes and the constraints in pricing in the infrastructure sector and the failure to enforce contracts.

Way forward 

• The government has also ordered a probe by the Serious Fraud Investigation Office. 
• For the new board and government, the job should not end with a resolution plan. 
• It should go hand in hand with a forensic audit and fixing of accountability.
• Even as the government cleans up the mess, it will have to think hard on how it will fill the void in financing infrastructure.

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UPSC Prelims Questions: 

Q.1)  Who has been appointed by Union Government as the Chairman of newly constituted board of IL&FS?
A.    Shikha Sharma
B.    Ratan Tata
C.    Deepak Parikh
D.    Uday Kotak 
Answer:  D

UPSC Mains Questions:
Q.1) Government, and new IL&FS board, need to clean up the mess and fix accountability. 

Rethink MSPs

Mains Paper: 2 | Agriculture 
Prelims level: MSP
Mains level: Relatively moderate raises for rabi crops are a relief.

Context 

• The Reserve Bank of India and bond markets should heave a sigh of relief at the relatively moderate hikes in the minimum support prices (MSP) for rabi crops declared by the NDA government.
• The MSP for wheat to be planted in the ensuing 2018-19 season has been fixed at Rs 1,840 per quintal, which is only 6.1 per cent more than the Rs 1,735 for last year.

Important highlight of the MSP raise 

• The other crops such as mustard, chana, masur and barley, the raise is from 2.1 to 5.3 per cent. 
• The 20.6 per cent higher MSP for safflower has no material consequence, as this oilseed is grown in just about 1.5 lakh hectares (compared to 300-310, 90-100 and 60-70 lakh hectares for wheat, chana and mustard, respectively) and hardly procured by government agencies. 
• The restraint shown in the latest MSP increases  for the kharif season, these amounted to 12.9 per cent in paddy and 19.3-52.5 per cent in maize, moong, cotton, bajra, jowar, nigerseed and ragi.

Initiatives taken by the government so far

• The Modi government had earlier erred by accepting the M S Swaminathan commission’s recommendation of fixing MSPs at 1.5 times the estimated production cost of crops. 
• By binding itself to a cost-plus pricing formula and guaranteeing a minimum 50 per cent return to farmers, the government would have had to grant unsustainably high MSPs out of line with market prices. 
• That possibility was even greater when diesel, electricity, fertiliser and pesticide costs for farmers have gone up by 25 per cent or more in the last one year.
• The Commission for Agricultural Costs & Prices’ estimates, which show a mere 6 per cent annual production cost escalation for wheat and at 1.8-7.2 per cent in other rabi crops. 
• The seemingly conservative cost increases taken have helped keep the latest MSP hikes within limits, even as the Agriculture Ministry has claimed that they correspond to returns ranging between 50.1 per cent for safflower and 112.5 per cent for wheat.

Way forward 

• The test of MSPs, however, lies not in announcement, but implementation. 
• The current kharif marketing season, where arrivals in mandis have barely begun and most crops, barring cotton, are already selling way below the MSPs announced in July. 
• The sheer lack of credibility in both fixation methodology and effective enforcement makes it worthwhile to rethink the utility of MSPs. 
• Farmer interest is better served by removing all restrictions on marketing, storage and movement (including export) of produce, along with making fixed per-acre payments irrespective of the crop that is grown.

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UPSC Prelims Questions: 

Q.1) Consider the following statements about Price Stabilization Fund (PSF):
1. It is used to procure only perishable agricultural and horticultural commodities.
2. It is announced as a part of Minimum Support Price (MSP).
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:  D

UPSC Mains Questions:
Q.1) Relatitvely moderate MSP raise is a big relief for Indian farmer. Critically examine the statement. 
 

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Topic of Discussion: Surgical Strike - Bravery of the army (सर्जिकल स्ट्राइक - सेना का शौर्य)- Lok Sabha TV Insight Discussion

(VIDEO) Taking Stock of CSR : Rajya Sabha TV Big Picture Debate

Topic of Discussion: Taking Stock of CSR : Rajya Sabha TV Big Picture Debate

UPSC will allow Application Withdrawal soon

Now Union Public Service Commission (UPSC) will allow candidates withdrawal of applications from the examinations. The new proposal will be implemented with the Engineering Services Examination(IES) 2019. Later, other examinations like CSE etc will be brought under this arrangement. 

How it works -

• In order to avail this facility, the candidate has to provide details of application.
• Separate One Time Password (OTP) will be sent on candidates registered mobile number and email-id. 
• On successful completion of withdrawal of the application, a confirmation message will be sent on the email and also an SMS.
• Once the application has been withdrawn, it can't be revised. 

Benefits of the newly introduced arrangement-

• UPSC has estimated that roughly 50% of the candidates, out of the registered ones, appear in the examination.
• The commission has to book venues, print papers, hire invigilators and ship the documents for all the applicants which turn out to be a waste of 50% energy and resources. 

Other Reforms-

• UPSC has also brought an increasing number of exam-related interactions and transactions online. This will be an initiative introduced in order to reduce the stress for the candidates.
• UPSC is also looking forward with shifting from pen and paper mode of examination to the computer based mode. 
• Additionally, the new system will also serve to cut down the time cycle for each examination.

Way forward-

• Bearing in mind the aspirations of the youth for better job opportunities, the commission is now disclosing the scores and rankings of the non-recommended candidates in some examinations on its website and further link it with "National Career Service portal" of the ministry of Labor and employment. 
• Different central ministries and organizations can take advantage of this arrangement where in candidates who have been cleared a rigorous screening process in civil services, Engineering services or Combined Medical Examination, but could not find a place in the merit list due to constraints of vacancies, can now look forward to being picked up for other government , public sector or private sector jobs, from the same database. 
• This measure will obviate the need for conducting of multiple and separate examinations by different organization for post with similar entry level qualifications.
• This will reduce the stress on young job aspirants and also the time taken for recruitment by various bodies. 

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The green state of mind

Mains Paper: 3 | Environment   
Prelims level: UN Champions of earth award 
Mains level: Development, Bio diversity, Environment

Context 

• This award is not for an individual. Instead, it is a recognition of Indian culture and values, which have always placed emphasis on living in harmony with Mother Nature.
• It was a proud moment for every Indian to see India’s proactive role in mitigating climate change being acknowledged and appreciated by the United Nations.
• Human beings and nature have a very special relationship.
• The first civilisations were established on the banks of rivers. Societies that live in harmony with nature flourish and prosper.
• Today human society stands at an important crossroads. The path that we take hereon will not only determine our well being but also that of the generations who will inhabit our planet after us.
• The imbalances between our greed and necessities have led to grave ecological imbalances.
• We can either accept this, go ahead with things as if it is business as usual, or we can take corrective actions.
• Three things will determine how we as a society can bring a positive change.

What are the important aspects? 

• The first is internal consciousness.
• Respect for nature is at the core of India’s traditions.

Mahatma Gandhi called for sustainable consumption so that the world does not face a resource crunch.

• Once we realise how we are flagbearers of a rich tradition, it will automatically have a positive impact on our actions.
• The second aspect is public awareness.
• We need to talk, write, debate, discuss and deliberate as much as possible on questions relating to the environment.
• At the same time, it is vital to encourage research and innovation on subjects relating to the environment.
• The third aspect is proactiveness.
• We see this proactiveness in the Swachh Bharat Mission, which is directly linked to a sustainable future.

Achievement done by us so far 

• Sanitation coverage is up from 39 per cent to 95 per cent.
• Over 85 million households now have access to toilets for the first time.
• We see this proactiveness in the success of the Ujjwala Yojana.
• India is moving at a quick pace in cleaning its rivers.
• The Namami Gange Mission is changing this historical wrong.

Emphasis is being given to proper treatment of sewage.

• The over 13 crore soil health cards distributed to farmers are helping them make informed decisions that will boost their productivity and improve the health of our land, which helps the coming generations.
• We have integrated the objectives of Skill India in the environment sector and launched schemes including the Green Skill Development Programme for skilling about 7 million youth in environment, forestry, wildlife and climate change sectors by 2021.
• This will go a long way towards creating numerous opportunities for skilled jobs and entrepreneurships in the environment sector.

Way forward 

• Our country is devoting unparalleled attention to new and renewable sources of energy.
• The Ujala Yojana has led to the distribution of nearly 31 crore LED bulbs.
• The costs of LED bulbs have reduced and so have the electricity bills and the C emissions.
• India’s proactiveness is seen internationally.
• In March 2018, world leaders of several countries converged in New Delhi to mark the start of the International Solar Alliance, an endeavour to harness the rich potential of solar energy and bring
• together all nations that are blessed with solar power.
• While the world is talking about climate change, the call for climate justice has also reverberated from India.
• The world needs to shift to a paradigm of environmental philosophy, environmental consciousness rather than merely government regulations.
• Together, we will create a clean environment that will be the cornerstone of human empowerment.

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UPSC Prelims Questions: 

Q.1) The Champions of earth award given by which of the following organization?
A.    UN
B.    IMF
C.    WTO
D.    World Bank
Answer:  A

UPSC Mains Questions:
Q.1) What is the UN Champions of earth award? What are the significance of it?
 

Pride and Prejudice

Mains Paper: 3 | Environment   
Prelims level: Asiatic lions 
Mains level: Environmental impact assessment and conservation

Context 

• The death of 21 Asiatic lions in Gujarat’s Gir National Park in less than a month invites serious questions.
• They initially blamed the deaths on infighting between lion prides.
• Male lions are known to maul each other to death but they never harm females.
• The park managers have now found evidence of a “viral infection” in some blood and tissue samples of the dead animals.

Claims vs reality

• They have isolated 31 lions from the areas.
• More than 180 lions have died in Gir in the past two years.
• This is worrying given that lion deaths averaged around 60 between 2010 and 2015.
• Most scientific studies reckon that Gir can host about 300 lions, about half the current population.
• More than 50 per cent of the national park’s lions have spilled out of the protected area.
• In 2013, the Supreme Court directed the translocation of “some” lions from Gir to Kuno in Madhya Pradesh.
• The Gujarat government has, however, refused that MP has not gone by the IUCN’s guidelines for translocation.
• MP’s forest officials retort that Kuno satisfies all the conditions laid down by the Wildlife Institute of India.

Way forward 

• Gir has lived under the shadow of an epidemic since 2012, when scientists from the Indian Veterinary Research Institute identified the Goat Plague (Peste Des Petits Ruminants) virus in a lion carcass.
• The wildlife authorities in Gujarat and Madhya Pradesh should not forget that an epidemic caused by a virus wiped out more than a third of the lion population in Tanzania’s Serengeti National Park in the 1990s.

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UPSC Prelims Questions: 

Q.1) Which of the following are Keystone Species?
1. Sea otters
2. Red Mangroves
3. Elephants
4. Hummingbirds
5. Sharks
Select the correct answer using the code given below.
(a) 1, 2 and 4 only
(b) 2, 3 and 4 only
(c) 1, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5
Answer:  D

UPSC Mains Questions:
Q.1) Then recent news about the death of lions felt massive impacts on environments. How we can rebuild the environmental infrastructure and resolve the problem? 

No sweeping change on Swachh Bharat Mission 

Mains Paper: 2 | Governance  
Prelims level: Swachh Bharat Mission 
Mains level: The Swachh Bharat Mission needs a broader vision of what constitutes cleanliness 

Context 

• India’s Swachh Bharat Mission is receiving global praise.
• In 2014 the sanitation gap of nearly 60% of the rural population not having access to a toilet at home. 
• The NDA government invoked Mahatma Gandhi’s vision of a clean and healthy country when it launched the ambitious programme.
• Prime Minister Narendra Modi announced a Swachh movement in 2014 to change that, and four years later the outcomes show that achieving social change is far from easy. 

Important highlights of the Swachh Bharat Mission achievement 

• The BJP-led government at the Centre, the SBM enjoys arguably the highest priority, and a ₹16,400-crore fund was raised for it during 2015-17 when a special cess was in force. 
• On Gandhi Jayanti this year, the SBM’s Gramin wing declared it has constructed 86.7 million Individual Household Latrines and raised sanitation access to 94% in rural areas; 5,07,369 villages are now ‘open defecation free’. 
• On the face of it, this is big advance. But there is a need for a close audit of the outcomes.
• In some States, such as Rajasthan, independent verification shows that the social change that the SBM hopes to achieve remains elusive, and traditionally oppressed communities continue to manually remove filth from dry latrines used by the upper castes. 
• There are reports of a similar situation prevailing in some parts of Uttar Pradesh and Madhya Pradesh too.
• What this shows is that the very evil that Gandhi wanted to see changed — of some castes condemned to do such work by others — persists.

Way forward

• Besides making sanitation a movement through the provision of well-designed toilets and behaviour change in rural India, the SBM should have a broader vision of what constitutes cleanliness. 
• The Centre asserts that urban toilet coverage is now 87% of the target, and nearly three-fourths of the wards in the country have door-to-door collection of municipal waste, but the lived experience of the city-dweller, especially in the bigger metros, is different. 
• Waste volumes continue to grow as economic growth spurs consumption. 
• The laws on municipal solid waste, protection of water sources and pollution control are just not being enforced.
• The official machinery required to enforce legal provisions vigorously, and the infrastructure to manage waste scientifically are inadequate, making it unlikely that there will be significant public health outcomes flowing from high-profile cleaning campaigns.
• Without full commitment to these aspects of development, there is little chance of meaningfully achieving the Sustainable Development Goals on water and sanitation anytime soon.
• Besides ending manual scavenging, the Swachh Bharat Mission must ensure that the manual cleaning of septic tanks, which is killing so many workers each year, is stopped and that funds for rehabilitation reach them.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Consider the following statements regarding the Swachh Sarvekshan Survey:
1. It is an all-India survey to measure citizen connect with sanitation outcomes.
2. It ranks states in India on the basis of sanitation.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:  A

UPSC Mains Questions:
Q.1) The Swachh Bharat Mission needs a broader vision of what constitutes cleanliness. Crtitically examine the statement.  

(VIDEO) The Good Samaritan Law : Rajya Sabha TV Big Picture Debate

Topic of Discussion: The Good Samaritan Law : Rajya Sabha TV Big Picture Debate

A flight path with obstacles 

Mains Paper: 3 | Internal Security  
Prelims level: India’s drone use policy
Mains level: India’s drone use policy makes the possibility of a red tape-free flight very slim 

Introduction 

• The ‘Swiss centre of excellence for agricultural research’, in Nyon, Switzerland, agriculture scientists fly a drone to study nitrogen level in leaves, not for a farm as a whole, but for each individual plant.
• The drone takes a large number of images, which when fed into a computer model with data on soil condition, weather, time of the year and other information helps analyse which plants are deficient in nitrogen, enabling farmers to add corrective fertilizer only where necessary.
• Sensefly, a Swiss drone manufacturer, has customers around the world whose use of drones has resulted in higher yield (more than 10% in observed case studies) and significantly lower usage of fertilizers and herbicides.

What are the policy contradictions?

• The futuristic promise of unmanned flying vehicles a more immediate reality, India has largely been dragging its feet. 
• The Ministry of Civil Aviation has attempted to give some structure to the development of drone infrastructure in India. While announcing the publication of these guidelines,
• Civil Aviation Minister Suresh Prabhu made two points, the contradictions of which also highlight India’s lack of clarity on what it should do with drones. 
• He estimated the potential of the “drone market” in India to be $1 trillion. 
• He also said India’s security environment necessitated extra precautions.
• The regulations have been drafted on flying a drone is a task wrapped tightly in immense paperwork. 
• India’s regulations separate drones into five categories — nano, micro, small, medium and large. 
• There is very little regulation for flying a nano up to 50 metres height, except for not flying near airports, military sites or in segregated airspace.
• The paranoia kicks in from the micro category, starting with the application for a unique identification number (UIN) for each drone, with a long list of documentation including security clearances from the Ministry of Home Affairs (MHA) in several cases. 
• Once the UIN is obtained, operators get to move to the next step of having to apply for an Unmanned Aircraft Operator Permit (UAOP), implying more forms, more annexures and more submissions. 
• To fly a micro drone below 200 ft, users have to intimate the local police station 24 hours prior. (One application requires that it be submitted with seven copies.)
• Manufacturers of drones as well as technologists and researchers making applications using drones have to test fly these frequently, often several times a day.
• The structure of these regulations makes the possibility of a red tape-free flight very slim.

What is untapped potential?

• The security and privacy risks of allowing drones to fly in an unregulated manner are high. 
• India has to reach even the fraction of the $1 trillion potential.
• Mr. Prabhu said, it needs to figure out a more balanced manner of regulation. The current rules are a start, but only in the sense that they free all drones from their previous illegality.
• The real impact of drones will be in the many applications they will be put to. 
• Agriculture is just one such. They are likely to be the disaster prevention systems, rescue operation leaders, and even public transport providers in the not too distant future. 
• Missing out on working on these applications early enough will likely have serious repercussions to India’s future competitiveness in the field.

Conclusion 

• India has to compete against these giants, it already has a lot of catching up to do.
• Filing a series of applications in multiple copies and waiting for various government departments to respond is not the best way to get started.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Aquila sometimes seen in news is a:
(a) Solar powered plane to beam internet
(b) Satellite to monitor ocean currents and tides
(c) Underwater observatory in the Arctic
(d) India's first indigenous radar mounted submarine
Answer:  A

UPSC Mains Questions:
Q.1) India’s drone use policy makes the possibility of a red tape-free flight very slim. Give you argument about the existing drone policy adopted by India. 

A Cure Called Inclusion

Mains Paper: 2 | Health 
Prelims level: Not so important  
Mains level: Their marginalization affects the health of tribal communities. 

Introduction 

• A report in this newspaper drew attention to the findings of an Expert Committee on Tribal Health appointed five years ago by the Ministries of Health and Family Welfare and Tribal Development. 
• The report revealed that tribal communities lag behind the general population on most health parameters. 
• Health is an under-discussed matter, both for the country’s political class and a significant section of its civil society. 
• Discussions on health-related problems of tribals, minorities and Dalits are even rarer, both in the corridors of power and within the educated social class of the country.

Important highlights of this report 

• Health is an interplay of a number of social, political, cultural, environmental and genetic factors.
• It is important to identify the missing links in this sad story of tribal health in India. 
• According to the 2011 census, Scheduled Tribes form 8.6 per cent of the country’s populations. 
• Many of these tribes live in the most inaccessible geographical regions of the country.
• In a study, published in The Lancet in May, India ranked 145 among 195 countries in terms of healthcare accessibility behind Bangladesh and Bhutan.

Factors depends on healthcare access 

• Access to healthcare depends on a number of factors of which female literacy is an important determinant.
• It is instrumental in shaping a group’s healthcare seeking behaviour. 
• According to the 2011 Census, the female literacy of Scheduled Tribes is 56.5 per cent; this is almost 10 per cent below the national rate and is one reason for tribal groups doing poorly on health parameters. 
• Financial insecurity is another major cause of the ill-health of tribal people. 
• It is no accident that a majority of hunger deaths reported in the country in the past five years happened to be of members of Scheduled Tribes.

Health care situations around the world 

• The poor health of an ethnic group is very often a result of the exclusion of that group from a country’s national imagination. 
• The infant mortality rate of native North Americans and Alaskan natives, both underprivileged groups in the US, is 60 per cent higher than that of the Caucasians. 
• According to 2012 figures, more than 6 per cent people from these groups suffer tuberculosis compared to 0.8 per cent for the US’s white population.
• A poll conducted by the Robert Wood Johnson Foundation and Harvard T H Chan School of Public Health revealed that about a quarter of Native Americans experienced discrimination when consulting a doctor or a health clinic. 
• Aboriginal and Torres Strait Islander people in Australia are also known to have poorer health compared to other Australians. 
• Exclusion and marginalisation of a group leads to poverty, which in turn makes people from such groups vulnerable to diseases. 
• This holds true for India’s Scheduled Tribes as well. 
• Ending the marginalisation of tribal communities should then be at the heart of all government and civil society efforts to improve the health of people from tribal communities.
• The healthcare facts in India among the tribal communities 
• Universal healthcare is much more than providing infrastructure or alleviating specific health disorders through national programmes. 
• It requires correction of a number of social parameters that govern health. Besides government apathy, problems specific to some tribal groups contribute to their poor health statistics. 
• A 2004 study in Jhagram block of West Bengal’s Medinipur district, for example, showed that 63.6 per cent Santhal (a Scheduled Tribe) mothers were aware of family planning measures, as compared to 87 per cent non-Santhal women. 
• Scheduled Tribe communities are known to be vulnerable to specific diseases  people of Odisha’s Gond tribe, for example, are susceptible to sickle cell disease.

Conclusion 

• Improving the health of Scheduled Tribes requires a multi-pronged approach. 
• An honest attempts at inclusion  politically, administratively and socially  should be behind all such endeavours.
• Measures to tackle group specific health issues and capacity building of a group would go a long way in promoting their health.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Mission Parivar Vikas aims to:
(a) improve access to family planning services.
(b) ensure livelihood opportunities for the next generation of a family.
(c) enhance assets of a family to improve income security.
(d) provide health insurance to at least one person of a household.
Answer:  A

UPSC Mains Questions:
Q.1)  What are the factors responsible for the healthcare situation among the tribal communities is not performing well? How it can be improve? 
 

From Plate to Plough: Get smarter on the farm

Mains Paper: 3 | Agriculture   
Prelims level: Input subsidies 
Mains level: Revitalizing India’s agriculture policy 

Introduction 

• Public capital formation in agriculture has been declining from 3.9 per cent of agri-GDP in 1980-81 to 2.2 per cent in 2014-15 and recovered to 2.6 per cent in 2016-17.
• The input subsidies on fertilisers, water, power, crop insurance and agri-credit have risen from 2.8 per cent to 8 per cent of agricultural GDP during the same period. 

Points highlighted by the Union Finance Minister 

• Union Finance Minister remarked that India needs a good blend of investments and subsidies in its agriculture policy. 
• It was heartening to hear him say that luckily, there is not a severe constraint on resources to invest in rural areas, be it roads, water (irrigation), sanitation, and even housing. 
• Including agri-research and development (R&D) and quality education in this list of rural investments would have ensured handsome pay offs.
• It reducing poverty and propelling agri-growth at a much faster pace than has been the case so far. This is the clear message of the book.
• Most countries support agriculture to ensure food security and/or enhance farmers’ income. 
• The main policy instruments to support farmers in India include subsidised fertilisers, power, agri-credit and crop insurance on the input side, and minimum support prices for major crops on the output front. 
• In a recent study, conducted jointly by the OECD and ICRIER, estimated that India’s trade and marketing policies have inflicted a huge negative price burden upon the country’s farmers. 
• The Producer Support Estimate (PSE) for India works out to be minus (-) 14 per cent of the gross farm receipts for the period 2000-01 to 2016-17.
• This is primarily because of restrictive export policies (minimum export prices, export bans or export duties) and domestic marketing policies (due to the Essential Commodities Act, APMC, etc).

Important points highlighted in this book 

• The public capital formation in agriculture has been declining from 3.9 per cent of agri-GDP in 1980-81 to 2.2 per cent in 2014-15 — it recovered to 2.6 per cent in 2016-17.
• The input subsidies on fertilisers, water, power, crop insurance and agri-credit have risen from 2.8 per cent to 8 per cent of the agricultural GDP during the same period. 
• The results show that expenditure incurred on Agri-R&E (Research and Education), roads or education are five to 10 times more powerful in alleviating poverty or increasing agri-GDP than a similar expenditure made on input subsidies.

What will be the policy suggestions?

• Investment in public irrigation is very expensive, as it involves long lags, and the gap between the potential created and potential utilised has increased over time. 
• To give higher returns, this leaky system must be fixed, it should be made more transparent and the gap between potential created and utilised bridged.
• The present system of delivering subsidies through the pricing policy needs to be shifted to an income policy, which could be well-targeted, and leakages minimised on the lines of JAM trinity. 
• Many OECD countries, as well as emerging countries such as China, are moving in that direction. Indian farms can also benefit from this move where input subsidies at least are given as DBT on a per hectare (ha) basis.
• The investments need to be prioritised towards agricultural research and development, roads and education. Interestingly, at the global level, the private sector is leading in agri-R&D.
• The big six companies have been investing more than $7 billion a year, which is almost seven times the expenditure incurred by the Indian Council Agricultural Research (ICAR). 

Conclusion 

• India needs to access that technology, it needs to develop a proper IPR regime, which is in the interest of farmers as well as investors. 
• India has a lesson to learn from China in this aspect as well. ChemChina, a PSU, has taken over Syngenta Corporation — a leading player in crop protection and seeds — for $43 billion.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Which of the following agencies has launched India's first 'Agricultural Marketing and Farmer Friendly Reforms Index'?
(a) Union Ministry of Agriculture
(b) NITI Ayog
(c) Food Corporation of India
(d) Small Farmers’ Agriculture – Business Consortium
Answer:  B

UPSC Mains Questions:
Q.1) India needs to revitalize their agriculture policy rather than giving it subsides. Critically examine the statement. 

(Notification) UPSC Engineering Services Examination, 2019

No.F. 2/2/2018-E.I(B): Preliminary/Stage-I Examination of the Engineering Services Examination for recruitment to the services/ posts mentioned in para 2 below will be held by the Union Public Service Commission on 6 th January, 2019 in accordance with the Rules published by Ministry of Railways in the Gazette of India Extraordinary dated 26 th September, 2018.
2. (A) Recruitment on the results of this examination will be made to the Services/ Posts under the following categories:-

• Category I-Civil Engineering.
• Category II-Mechanical Engineering.
• Category III-Electrical Engineering.
• Category IV-Electronics & Telecommunication Engineering

Category I-Civil Engineering

Group-A Services/Posts
(i) Indian Railway Service of Engineers.
(ii) Indian Railway Stores Service (Civil Engineering Posts).
(iii) Central Engineering Service
(iv) Indian Ordnance Factories Service AWM/JTS (Civil Engineering Post)
(v) Central Engineering Service (Roads), Group-A (Civil Engineering Posts).
(vi) Survey of India Group ‘A’ Service.
(vii) AEE(Civil) in Border Road Engineering Service.
(viii) Indian Defence Service of Engineers.
(ix) AEE(QS&C) in MES Surveyor Cadre

CATEGORY II—MECHANICAL ENGINEERING

Group-A Services/Posts
(i) Indian Railway Service of Mechanical Engineers.
(ii) Indian Railway Stores Service (Mechanical Engineering Posts).
(iii) Central Electrical & Mechanical Engineering Service (Mechanical Engineering Posts).
(iv) Indian Ordnance Factories Service AWM/JTS (Mechanical Engineering Posts).
(v) Defence Aeronautical Quality Assurance Service/SSO-II (Mechanical).
(vi) AEE in GSI Engineering Service Gr ‘A’.
(vii) Indian Defence Service of Engineers.
(viii) Indian Naval Armament Service (Mechanical Engineering Posts).
(ix) Asstt. Naval Store Officer Grade-I (Mechanical Engineering Posts) in Indian Navy.
(x) AEE(Mech) in Border Roads Engineering Service.

CATEGORY III—ELECTRICAL ENGINEERING

Group-A Services/Posts
(i) Indian Railway Service of Electrical Engineers.
(ii) Indian Railway Stores Service (Electrical Engineering Posts).
(iii) Central Electrical & Mechanical Engineering Service (Electrical Engineering Posts).
(iv) Indian Defence Service of Engineers.
(v) Indian Naval Armament Service (Electrical Engineering Posts).
(vi) Asstt. Naval Store Officer Grade-I (Electrical Engineering Posts) in Indian Navy.

CATEGORY IV—ELECTRONICS AND TELECOMMUNICATION ENGINEERING

Group-A/B Services/Posts
(i) Indian Railway Service of Signal Engineers.
(ii) Indian Railway Stores Service (Telecommunication/Electronics Engineering Posts).
(iii) Indian Radio Regulatory Service Gr ‘A’.
(iv) Indian Ordnance Factories Service AWM/JTS (Electronics and Telecom Engineering Posts).
(v) Indian Telecommunication Service Gr ‘A’.
(vi) Indian Naval Armament Service (Electronics and Telecom Engineering Posts).
(vii) Asstt. Naval Store Officer Grade-I(Electronics and Telecom Engg. Posts) in Indian Navy.
(viii) Junior Telecom Officer Gr ‘B’.

Educational Qualification:

For admission to the examination, a candidate must have –
(a) obtained a degree in Engineering from a University incorporated by an Act of the Central or State Legislature in India or other Educational Institutions established by an Act of Parliament or declared to be deemed as Universities under Section 3 of the University Grants Commission Act, 1956; or 
(b) passed Sections A and B of the Institution Examinations of the Institution of Engineers (India); or
(c) obtained a degree/diploma in Engineering from such foreign University/College/Institution and under such conditions as may be recognised by the Government for the purpose from time to time, or
(d) passed Graduate Membership Examination of the Institution of Electronics and Telecommunication Engineers (India);or
(e) passed Associate Membership Examination Parts II and III/Sections A and B of the Aeronautical Society of India; or
(f) passed Graduate Membership Examination of the Institution of Electronics and Radio Engineers, London held after November, 1959

Plan of Examination:

1. The examination shall be conducted according to the following plan :—
(i) Stage-I: Engineering Services (Preliminary/Stage-I) Examination (Objective Type Papers) for the selection of candidates for the Stage-II: Engineering Services (Main/Stage-II) Examination;
(ii) Stage-II: Engineering Services (Main/Stage-II) Examination (Conventional Type Papers) and
(iii) Stage-III : Personality Test

Age Limits:

(a)A candidate for this examination must have attained the age of 21 years and must not have attained the age of 30 years on the 1st January, 2019 i.e., he/she must have been born not earlier than 2nd January, 1989 and not later than 1st January, 1998.
(b) The upper age-limit of 30 years will be relaxable upto 35 years in the case of Government servants of the following categories, if they are employed in a Department/ Office under the control of any of the authorities mentioned in column 1 below and apply for admission to the examination for all or any of the Service(s)/Post(s) mentioned in column 2, for which they are otherwise eligible. 

Medical Examination :

Candidates finally recommended by the Commission on the basis of Engineering Services Examination, 2019 shall be required to undergo medical examination.
(a) Every candidate, on being finally recommended by Commission will be required to undergo medical examination as and when so decided by the Ministry of Railways (Railway Board) irrespective of the fact that he/she has appeared for such medical examination in the past and found fit/unfit on the basis of earlier examination.
(b) The medical examination will be conducted at various Railway Hospitals under Ministry of Railways (Railway Board). Other additional instructions for candidates are listed at Annexure-II. The findings of the Railways Medical Board will be taken as final and binding for all allotment purposes. 

Physical standards :

Candidates must be physically fit according to physical standards for admission to Engineering Services Examination, 2019 as per guidelines given in Appendix-II of the Rules for the Engineering Services Examination, 2019  published in the Gazette of India Extraordinary dated 26.09.2018.

Application Fee:

Candidates (excepting Female/SC/ST/ PH who are exempted from payment of fee) are required to pay a fee of Rs. 200/- (Rupees T w o hundred only) either by depositing the money in any Branch of SBI by cash or by using net  banking facility of State Bank of India.

HOW TO APPLY:

(a) Candidates are required to apply Online using the link www.upsc online.nic.in. Detailed instructions for filling up online applications are available on the above mentioned website.
(b) The applicants are advised to submit only single application; however, if due to any unavoidable situation, if he/she submits another/multiple applications, then he/ she must ensure that application with the higher RID is complete in all respects like applicants' details, examination centre, photograph, signature, fee etc. The applicants who are submitting multiple applications should note that only the applications with higher RID (Registration ID) shall be entertained by the Commission and fee paid against one RID shall not be adjusted against any other RID.
(c) All candidates, whether already in Government Service, or in Government owned industrial undertakings or other similar organisations or in private employment, should apply online direct to the Commission. Persons, already in Government service whether in a permanent or temporary capacity or as work-charged employees other than causal or daily rated employees or those serving under public enterprises are, however, required to inform their Head of Office/Department that they have applied for the Examination. Candidates should note that in case communication is received from their employer by the Commission withholding permission to the candidates applying for/appearing at the Examination, their application will be liable to be rejected/ candidature will be liable to be cancelled.

Important Dates:

LAST DATE FOR SUBMISSION  OF APPLICATIONS : 22.10.2018

Click Here for Official Notification

Courtesy: UPSC

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