Quotes

Why is it we generally get more attracted to people who do not realise our importance and ignore us?

I’ll quote Bob Marley here. It will explain everything.
“If she’s amazing, she won’t be easy. If she’s easy, she won’t be amazing. If she’s worth it, you wont give up. If you give up, you’re not worthy. … Truth is, everybody is going to hurt you; you just gotta find the ones worth suffering for.”

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What do you understand by tax-to-gross domestic product (GDP) ratio? Compare India’s tax-to-GDP ratio with that of OECD economies and comment whether India should strive to increase this ratio or not. (200 Words)

What do you understand by tax-to-gross domestic product (GDP) ratio? Compare India’s tax-to-GDP ratio with that of OECD economies and comment whether India should strive to increase this ratio or not. (200 Words)

  • India’s tax-to-gross domestic product (GDP) ratio is abysmally low
  • India taxes its citizens much lower in proportion to its GDP vis-à-vis other comparator economies and a substantive portion of such taxes are collected through largely regressive and distorting indirect rather than direct means.
  • India taxes its citizens much lower in proportion to its GDP vis-à-vis other comparator economies and a substantive portion of such taxes are collected through largely regressive and distorting indirect rather than direct means.
  • Purely in terms of a tax-to-GDP ratio, India has always been substantially lower than the average of OECD economies, over a 50-year period. Compared to a subset of OECD nations with lower GDP (Korea, Turkey, Mexico, Chile, Portugal, Greece, Slovenia, Indonesia and Poland), India’s tax-to-GDP is still lower at 17% versus an average of 24% for these nations.
  •  India’s direct to indirect tax ratio is roughly 35:65. This is in contrast to most OECD economies where the ratio is the exact opposite, 67:33 in favour of direct taxes.

Do you support the proposal of taxing agricultural income of farmers in India? Substantiate.

Do you support the proposal of taxing agricultural income of farmers in India? Substantiate. (200 Words)

  • Taxing agricultural income has been an emotive subject in the Indian context
  • Given the importance of access to finance, the policy in India has been to compel banks to lend to the underserved. The fact that access to formal finance remains a challenge even after decades of implementation of such policies demonstrates that such coercive policies have borne little fruit.
    • The burgeoning problem of farmer distress in India despite the existence of the priority sector lending programme for more than three decades is a case in point.
  • Given that a large portion of Indian farmers are illiterate or semi-literate and they do not maintain systematic books of accounts regarding their production and income, assessing their true income or income-earning potential becomes an onerous task for the bank loan officers.
  • A more sustainable approach to financial inclusion involves enabling people to borrow from the formal system.
  • We argue that taxing agricultural income can improve access to finance to a large section of farmers because verified income tax returns can provide a credible signal of the earnings potential of a farmer. Such verifiable information can help to separate conscientious and productive farmers from the unscrupulous or unproductive farmers. Such separation can be very useful in not only enabling access to finance but also entered using the cost of credit borne by farmers.

Do you think lack of employment opportunities is one of the major causes of protests seeking the status of Other Backward Classes (OBC) by prominent castes in India? What measures can government take to empower these communities without giving them reservation? Critically examine. (200 Words)

Do you think lack of employment opportunities is one of the major causes of protests seeking the status of Other Backward Classes (OBC) by prominent castes in India? What measures can government take to empower these communities without giving them reservation? Critically examine. (200 Words)

  • Giving in to such demands when expressed with violence sets an unfortunate precedent.
  • The Jat community in Haryana is locally dominant, with strong presence in politics and control of many local institutions like panchayats, and should not normally be seen as a candidate for quotas.
    • Naturally, its local dominance permits it to challenge the forces of the state more effectively than genuinely marginalised communities.
  • Like the Jats, Patidars are extremely influential in local and state politics.
  • Similarly, earlier this year the state of Andhra Pradesh was rocked by violence by the Kapu community, another locally powerful land-owning caste, demanding inclusion in the backward classes list in the state.
  • And the jobs that the private sector was supposed to create in order to replace farming have not materialised in full measure – and where they have, locally dominant castes may feel that they have not been able to corner them to the extent that they deserved.
  • This underlines the need to expand employment opportunities in rural and semi-urban areas – which means the pro-industry reform agenda must not be abandoned. But till those jobs materialise, giving in to violent demands is a dangerous route to take.

Discuss objectives and design of the Shyama Prasad Mukherji Rurban (rural-urban) Mission. Would this Mission act as complementary to Smart City mission? Examine. (200 Words)

Discuss objectives and design of the Shyama Prasad Mukherji Rurban (rural-urban) Mission. Would this Mission act as complementary to Smart City mission? Examine. (200 Words)

  • The Rurban mission would replace the United Progressive Alliance (UPA) government’s Provision of Urban Amenities in Rural Areas (Pura) initiative.
  • Rurban would create village clusters to minimise rural migration to cities through skill development programmes.
  • Rural migration was increasing but could be contained by providing quality of life in villages
  • Under the scheme, 300 clusters would be developed with an investment of Rs 5,100 crore in three years.
  • The Mission aims at development of rural growth clusters which have latent potential for growth, in all States and UTs, which would trigger overall development in the region.
    • These clusters would be developed by provisioning of economic activities, developing skills & local entrepreneurship and providing infrastructure amenities. The Rurban Mission will thus develop a cluster of Smart Villages.
  • These clusters would be well delineated areas with planned layouts prepared following the planning norms (as laid down in the State Town and Country Planning Acts/similar Central or State statutes as may be applicable), which would be duly notified by the State/UTs. These plans would be finally integrated with the District Plans/Master Plans as the case may be.
  • The mission aims to create 300 such Rurban growth clusters over the next 3 years, across the country. The funding for Rurban Clusters will be through various schemes of the Government converged into the cluster. The SPMRM will provide an additional funding support of upto 30 percent of the project cost per cluster as Critical Gap Funding (CGF) as Central Share to enable development of such Rurban clusters.
  • To ensure an optimum level of development, fourteen  components have been suggested as desirable for the cluster, which would include;  Skill development training linked to economic activities, Agro Processing/Agri Services/Storage and Warehousing, Digital Literacy, Sanitation, Provision of piped water supply, Solid and liquid waste management, Village streets and drains, Street lights, Fully equipped mobile health unit, Upgrading school /higher education facilities, Inter-village road connectivity, Citizen Service Centres- for electronic delivery of citizen centric services/e-gram connectivity, Public transport., LPG gas connections.
  •  The Mission envisages institutional arrangements both at the State and Center to ensure smooth implementation of the Mission. The Mission also has an Innovation budget towards facilitating research, development and capacity building.

The recent violent protests by Jat and Patidars demanding reservation under OBC are termed as the unreasonable demands. Do you agree? What are the causes behind such demands? Should they be fulfilled? Critically comment. (200 Words)

The recent violent protests by Jat and Patidars demanding reservation under OBC are termed as the unreasonable demands. Do you agree? What are the causes behind such demands? Should they be fulfilled? Critically comment. (200 Words)

  • “caste” alone could not be the criterion for determining socio-economic backwardness.
  • The National Commission for Backward Classes had in the past come out with specific reasons against the inclusion of the Jats in Haryana in the Other Backward Classes (OBCs) list.
  • In the Indira Swahney case, SC said that even though caste helps in easy determination of backwardness of social group, it can’t be the sole reason to extend reservation
  • The agitations, in a way, point to the need to review the list of castes counted as OBCs and to deepen the definition of creamy layer. An opportunity for this was provided through the Socio-Economic and Caste Census, but it was missed.

 

Reasonable reasons behind such demands are as below :
1) Unemployment : Failure of state to create adequate employment opportunities for its educated youth.
2) Partial success of reservation policy : Increased competiton due to partial success of reservation policy which bring some socially disadvantaged sections par to the general people.
3) Largely failure of Reservation policy : Anger towards state’s largely failed reservation policy whose benefits are being accrued by well-off eligible communities.
4) Education : Lack of access to affordable, quality higher education instittutes in India.
5) Agriculture : Agrarian distress due to back to back droughts which affected prosperity of these communities.

Demand of the reservation is not reasonable but government should address the actual reasons which have caused such demand :
1) Education : Government should extend the scholarships, free coachings or soft loans which should be open to all.
2) Agriculture : Government should give adequate attention to agriculture sector as it can only drive the inclusive growth agenda.
3) Reservatio policy : Government should consider dis-reservation for those who are benefitted with the policy.
4) Employment : Government should holistically view all 3 policies – Foreign trade, Foreign investment and IPRs policies to actually make “Make In India” to deliver.


The reason behind upsurge of these demands stem from the following reasons-
* Benefits of the reservation system and its extension for decades
* Failure of the economic system to create enough jobs and opportunities for everyone
* Reducing agricultural productivity as a natural outcome and because of sub-divisions of land upon which Jats sustain themselves

Critically discuss the elements and objectives of the Saansad Adarsh Gram Yojana. Do you think this scheme was needed when Members of Parliament are already getting funds under the MPLAD (Member of Parliament Local Area Development) scheme? (200 Words)

Critically discuss the elements and objectives of the Saansad Adarsh Gram Yojana. Do you think this scheme was needed when Members of Parliament are already getting funds under the MPLAD (Member of Parliament Local Area Development) scheme? (200 Words)

  • Under the Saansad Adarsh Gram Yojana, each MP has to develop one model village in their constituency by 2016 and two more by 2019.
    • A Lok Sabha MP has to choose a gram panchayat from within his constituency, while Rajya Sabha MPs can choose a gram panchayat from the rural area of a district of their choice in the state from which they are elected.
    • The guidelines state that nominated MPs have to choose a gram panchayat from the rural area of any district in the country.
    • In case of urban constituencies – where there are no gram panchayats – the MP will identify a gram panchayat from a nearby rural constituency for developing as a model village.
  • A model village under the Saansad Adarsh Gram Yojana is expected to have basic minimum facilities.
    • These include pucca houses for all, drinking water, all-weather roads with covered drains, electricity connection to all households, street lights, including from alternative sources of energy, and pucca infrastructure for public institutions – anganwadis, schools, health institutions, gram panchayat office and libraries.
  • SAGY aims at instilling certain values, such as people’s participation, Antyodaya, gender equality, dignity of women, social justice, spirit of community service, cleanliness, eco-friendliness, maintaining ecological balance, peace and harmony, mutual cooperation, self-reliance, local self-government, transparency and accountability in public life, etc., in the villages and their people so that they get transformed into models for others.
  • Ensuring universal access to education facilities, adult literacy, e-literacy are also important goals of SAGY. Apart from education, these villages will have quality health care. The outcomes will include 100% immunization, 100% institutional delivery, reduced IMR, MMR, reduction in malnutrition among children etc.
  • Adoption and adaptation of technology and introduction of innovations are critical to this programme. This will include use of space application and remote sensing for planning, mobile based technology for monitoring, agriculture technology for increasing productivity etc.
  • The villages to be developed under the Saansad Adarsh Gram Yojana cannot be funded from the MPLAD (Member of Parliament Local Area Development) scheme, while line ministries are also not showing much interest in allocation of fund for the programme. The entire reliance is on private and corporate funding, which is not regular.
  • SAGY gives focus to community participation. Social mobilization of village community can trigger a chain of other development activities in the village. For instance, reducing risk behaviours like alcoholism, smoking, substance abuse (drugs/tobacco/gutkha etc) among all age groups of population.
  • Strengthening of local democracy through strong and transparent Gram Panchayats and active Gram Sabhas and facilitating good governance is also an important objective of SAGY.
    • Women participation in the decision-making process will be encouraged.
    • In fact the Scheme envisages holding Mahila Sabhas and Bal Sabhas to discuss women and children specific issues and concerns. E-governance will also be given a push.

According to ambitious “Saansad Adarsh Gram Yojana”, each member of parliament will choose/adopt a village in his/her constituency (any constituency in state for RajyaSabha members and village in nearby constituency for urban constituency members) to fulfill the following broad objectives
1. Use of already existing schemes to develop model villages—Adarsh Grams—and development of new initiatives within the local contexts of the village.
2. Developing the model for local development which can be replicated in other villages as well.

The Goal is that each MP will have developed 3 villages by the end of 2019 and 8 by 2024.

As a granular level, Adarsh Gram is expected to have minimum basic facilities like pucca houses, all-weather roads with covered drains, electrification of all houses, street lights, drinking water, pucca infrastructure for Anganwadi, schools, gram panchayats, availability of modern education mechanisms, post office etc.

No separate funding had been allocated for this scheme but it has to accrue from other schemes like Indira Awas Yojana, MGNREGS, Pradhan Mantri Gram Sadak Yojana, MPLADS, Gram Panchayat’s Revenue, Central & State grants, CSR funds etc.

In the second phase of scheme parliamentarian’s response was not at all encouraging where only a handful of them (32/785) adopted the second village. Their apathy towards this scheme can be understood;
• As there are no dedicated funds for the scheme and
• no accountability for the implementation of this scheme.

MPLADS funds are for broader utilization and SAGY focuses specifically on a village so it is not fair to say that SAGY is redundant when MPLADS is existing.

There are no doubts that intentions around SAGY are good but to encourage it, the government should come up with some innovative ideas like;
• competition and awarding best Adarsh Gram and its MP
• Encouraging that some % of funds from schemes like MPLADS to be utilized for SAGY
• building accountable and transparent mechanism for its implementation.
• Along with MPs also nominating a corporate to adopt a village, and it can be added to their CSR profile.

Waiting for legislative action to bring reforms in various sectors is both cumbersome and time-consuming process. What executive measures can be introduced to reform sectors across exports, taxation, small scale, labour and infrastructure? Examine. (200 Words)

Waiting for legislative action to bring reforms in various sectors is both cumbersome and time-consuming process. What executive measures can be introduced to reform sectors across exports, taxation, small scale industries, labour and infrastructure? Examine. (200 Words)

  • (Ficci) has suggested a slew of urgent reforms across sectors, which will not require legislative action.
  • The proposed reforms are spread across exports, taxation, and crucial sectors such as small scale, labour and infrastructure.
  • According to Ficci, most of these reforms can be addressed by executive action by the respective ministries.
  • To boost India’s lagging merchandise exports, Ficci has suggested simplifying the process by which exporters can claim incentive benefits.
    • While the government has sought to incentivise exports through interest subvention and the merchandise exports from India scheme (MEIS), exporters have claimed several procedural and implementation difficulties to have made it unusuable.
    • The suggested reforms include increasing the time period allowed to exporters to claim MEIS benefits as well as for manually submitting the shipping bill.
    • Allowing exporters to self-certify the origin of various goods, which usually take a considerable time, has also been mentioned.
  • In labour laws, Ficci has proposed a uniform period of five years across states after which factory licences are required to be renewed. Currently, the period ranges from one to five years.
  • It has also recommended fixing a three-year time limit to decide pending cases by the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies Act, 1985, which has pending cases stretching back to 15 years.
  • Under the Employees Provident Fund and Employees State Insurance Acts, it has suggested placing a cap on the time duration of records summoned by the inspector for inspection for up to three years before.
  • It also urged the government to divest (disinvestment) its stake holding in central public sector undertakings
  • To secure urgent infrastructure growth, the setting up of a one-stop shop for handling projects coming up under the public-private partnership mode has been recommended.
    • While the government had announced setting up of an institution called ‘3P India’ in 2014, the body has still not been set up.
  • Ficci has also called for introducing binding statutory timelines for adjudication of matters relating to indirect taxes. It said the uncertainty in such cases make doing business difficult especially for small and medium enterprises.
    • Currently, the Customs Act states tax officials shall have to determine the amount of such duty within one year from the date of notice.
  • A provision be made each in the Customs, Central Excise and Service Tax laws that in case a show-cause notice is not adjudicated upon within a specified period from the date of issue, the proceedings shall lapse as if the show-cause notice was never issued
  • On cheap steel imports flooding the domestic market,
    • it has argued for instituting (introduce ) anti-dumping norms and suggested import duty on all steel products should be raised to 25 per cent in the upcoming Budget.
    • It has also called for the customs duty on all steel products be immediately raised to 15 per cent. Currently, the duty on import of long steel ranges from 10 to 12.5 per cent across categories.

Logjam in consecutive parliament sessions, led the govt to come up with executive measures:-

Reforms in export sector:-
– Increasing the time period to claim MEIS benefits.
– Allow manually submitting of the shipping bill.
– Provision to self-certify the origin of various goods, which usually take a considerable time.

Labor reforms:-
– Uniform period across states to renew factory licences (currently range from 1 to 5).
– Fixing timeline to decide pending cases by the Board for Industrial and Financial Reconstruction (currently stretched upto 15 years)
– Need to disinvest PSU.

Taxation reforms:-
– To boost SEZ, invitation to FDIs and high budget allocation, to grow more employment opportunities.
– Repeal of retrospective taxation.

Infrastructural reforms:-
– Setting of 3p-indian institute, to handle effectively projects under ppp mode.
– Revision of DFI( development financial institution) to instil long term investments in infrastructure.

Reforms in Small scale sector:-
– Need to recapitalise MSMEs.
– Provisions to make it women friendly.

Need of the hour to re-evaluate economic sector, with easy and friendly labor laws, strict implementation of anti dumping laws to maintain domestic competition healthier, fast adjudication of financial cases by setting specific tribunals, and fast implementation of GST only then projects like MII and SISI can successful.


Recent Parliament deadlock and the sensitive nature of some sectors have prompted GoI to take executive measures for reform :

1) Export : Foreign Trade Policy(2015-20) which aims to double the export has introduced various incentives to boost export. But, certain reforms such as increasing time period for claiming MEIS benefits, allowing self-certification of origin of goods are required.

2)Texation : Urgent need to either completely get away with the MAT (Minimum Alternate Tax) or reduced to its original rate of 7.5% to revive SEZs (Special Economic Zones) to attract foreign investment, create employment, boosting exports.
In addition, It is high time to get away with the Reterospective texation which has hindered the growth of Make In India campaign.

3) Labour : There is need of uniform period for factory licenses to renew which currently varies from 1 to 5 years. Secondly, there is urgent need to fix the timeline for the pending cases before the Board of Industrial and Financial Reconstruction. Finally, reform the existing labour laws to decrease the incidence of informal employment.

4) Infrastructure : Firstly, to provide single platform dealing with all PPPs under infrastructure sector, urgent need to set up 3P India institution. Secondly, There is urgent need to revive DFIs ( Development Financial Institutions) to make available long term- capital for the infrastructure sector.

However, Resorting to the executive measures and by-passing the legislative procedure as envisaged in our constitution is not a justifiable for the world’s fastest growing economy being the world’s largest democracy. It can damage our image as the most favourable destination as we argue on our unique 4 D’s – Democracy, Demography, Demand and recently added De-regualation.
Such executive measures should be adopted only when Parliament is not in session & economy desperately needs reforms.

 

8) Analyse the rates of unemployment and causes for their variation across regions, gender and religions in India as per latest surveys. (200 Words)

Analyse the rates of unemployment and causes for their variation across regions, gender and religions in India as per latest surveys. (200 Words)

  • Unemployment rate is defined as the number of persons unemployed as a proportion of the labour force (persons who are either ‘working’ or ‘seeking or available for work’), not the total population.
  • The unemployment rate in urban areas reduced from 4.5 per cent in 2004-05 to 3.4 per cent in 2011-12, new data from the National Sample Survey Office show.
  • In rural areas, the rate has been stable at around 1.7 per cent during this period.
  • Christians have the highest rate of unemployment in both rural (4.5 per cent) and urban (5.9 per cent) areas in 2011-12.
  • According to the survey, which was conducted in 2011-12, the unemployment rate across all the religious groups in rural areas was on the lower side than those in urban areas for both males and females.
  • Unemployment level in India is highest among those people who are richer and more educated.
    • The reason is that poor people can’t afford to stay unemployed, and hence, opt for any kind of work, irrespective of the nature of the job. The better off have the capacity to be unemployed as they look for the right job. Christians are the most educated group, hence unemployment rate is higher among them.
  • Self-employment is the major source of income for almost half the households, across all religious groups, in rural areas, followed by casual labour.

  • In urban areas, the proportion of households deriving major income from regular wage or salary earnings is the highest. Half the Muslim households in urban areas have self-employment as major source of income, the highest among all religions, while regular wage or salary earnings was the highest for Christians with 45.8 per cent households.


 

A) Variation across regions:
1) In rural areas the unemployment rate remains stable
Reason :
– Many people in rural areas go for self employment and casual labour.
– Poor and less educated people can’t afford to remain unemployed and do any kind of job.
– Agriculture provides all year employment in rural araes.

2) In urban areas rate of unemployment decreases.
Reason :
– Most of households are educated and get regular wages and salaried jobs.
– Self emplyment is another good sources of income.
– Various opportunities are avaialble in urban areas to get jobs in different sectors acc to capacity of individual.

B) Variation across religions:

1) Hindus have lowest rate of unemployment in both urban and rural araes.
Reason : Either they get good jobs or willing to do any sort of work.

2) Christians have highest rate of unemployment in both areas rural and urban.
Reason :They are educated and rich and don’t do any job untill they find suitable job for them. But in urban araes some of them do salaried jobs.

3)Unemployment rate decreases for sikhs in rural araes as they go for self employment and all work in casual labour sector.

4)Unemployment rate is higher for muslims in both rural and urban areas . Some of them go for self employment though.

C) Variation across Gender: Some stability is seen in rural araes between male and female.

1) Rate of employment higher for males

Reason :
– They can do any kind of work.
-They are sole bread earner of families.
– Mostly they do rural urban migration.
– Good educated than women mostly in rural areas.

2) Rate of unemployment in women less in urban areas

Reasons:
-In rural areas mindset of family prevents women to do work.
– Less educated in rural areas so don’t get good job , mostly do agricultural work

– Richer family won’t let there women to work
– In urban women are doing jobs in MNCs , BPOs as they recieve good education

– In rural areas MGNREGA provide work for women so it leads to stability.

India is pursuing an ambitious renewable energy (RE) target of 175 GW by 2022. Examine the role of the Central Electricity Regulatory Commission (CERC) in helping India achieve this target. (200 Words)

India is pursuing an ambitious renewable energy (RE) target of 175 GW by 2022. Examine the role of the Central Electricity Regulatory Commission (CERC) in helping India achieve this target. (200 Words)

  • India’s renewable energy target of 175 GW includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydroelectric projects
  • Amid the Centre’s push to pursue an ambitious renewable energy (RE) target of 175 GW by 2022,
    Central Electricity Regulatory Commission (CERC) has taken a number of initiatives which are aimed to enable reliable and secure operations of large interconnected grid operations.
    The CERC has notified regulations with regard to Deviation Settlement Mechanism (DSM) and Grid Code and Ancillary Services Regulations to support variable generation.
  • CERC has been instrumental in the creation of an enabling market environment through notifying regulations also on open access, inter-state transmission and point of connection tariff. These regulatory interventions will facilitate secure and reliable grid management and effective power market development.

Reform needed – CERC emphasised the need for ring fencing the state load despatch centres (SLDCs) and a special scheme for capacity building of SLDCs.


CERC, an autonomous, statutory body and the main electricity regulator, is important because:

1. Tarriff setting – As per the Power Tariff Policy, CERC sets up the tariff or the rate of inter-state electricity projects. Tariff determines how viable a project can be, with a higher tariff incentivising businesses including RE to set up more plants
2. It collaborates with the government and the CEA (Central Electricity Authority ) to set up right policies for RE Incentivisation, such as that of Net Metering, Roof Top Solar Policy of Green Energy Corridor
3. It guides and collaborates with the State Electricity Reform Commissions (SERC) in estimating the tariff of power, setting of RPO (Renewable Purchase Obligations ) for every state
4. It ensures development of power market through power exhanges, power trading, granting open access to generators, etc

To expand the efficacy of CERC , it is the duty of the govt to make it more financially independent by setting up of separate funds as advised by the 14th Finance Commission. The more independent it becomes, the more our electricity sector can develop