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MSME Credit Health Index

Why in News The latest MSME Credit Health Index indicates that MSME credit growth has accelerated in the quarter ending September 2020 as compared...

08 Mar 2021 Growth & Development
Technology And Innovation Report 2021: UNCTAD

Why in News India was the biggest ‘overperformer’ in frontier technologies than the country's per capita Gross Domestic Products (GDP)...

05 Mar 2021 Growth & Development
Maritime India Summit 2021

Why in News ‘Maritime India Summit 2021’ is being organised by the Ministry of Ports, Shipping and Waterways. Key Points Focus Area:...

03 Mar 2021 Growth & Development
The Big Picture: Modernising the Armed Forces

Why in News? Addressing a webinar on the effective implementation of the provisions of the Union Budget 2021-22 in the defence sector, the Prime...

02 Mar 2021 Growth & Development
India Emerged Out of Technical Recession

Why in News The Indian economy has emerged out of technical recession as it grew at 0.4% in the third (October-December) quarter of 2020-21 with...

01 Mar 2021 Growth & Development
Flexible Inflation Target

Why in News The Reserve Bank of India (RBI) in its Currency and Finance (RCF) report for the year 2020-21 has said that the current inflation target...

27 Feb 2021 Growth & Development
PLI Scheme for IT Hardware and Pharmaceuticals

Why in News Recently, the Union Cabinet has cleared Production-Linked incentive (PLI) schemes for pharmaceuticals and IT hardware, including...

26 Feb 2021 Growth & Development
National Hydrogen Energy Mission

Why in News The Union Budget for 2021-22 has announced a National Hydrogen Energy Mission (NHM) that will draw up a road map for using hydrogen as...

25 Feb 2021 Growth & Development
Animal Husbandry

Why in News A variety of policy concerns and the ongoing discussion over farm laws have fixed the spotlight on infrastructure investments necessary...

23 Feb 2021 Growth & Development
The Big Picture: Roadmap to Implement Infra Projects

Why in News? The Union Budget 2021-2022 has given the much-needed fillip to the infrastructure sector. The Finance Minister has also...

23 Feb 2021 Growth & Development
Scheme of Fund for Regeneration of Traditional Industries

Why in News The Ministry of Micro, Small & Medium Enterprises (MSME) inaugurated 50 artisan-based SFURTI clusters, spread over 18 States, to...

23 Feb 2021 Growth & Development
Go Electric Campaign

Why in News The central government has launched the “Go Electric" Campaign to spread awareness on the benefits of e-mobility and EV Charging...

23 Feb 2021 Growth & Development
Conclusive Land Titling

Why in News Recently, as many States have failed to send in their feedback on a Model Bill on Conclusive Land Titling , the Centre has warned that...

22 Feb 2021 Growth & Development
Health and Budget

This article is based upon “Towards Swasth Bharat” which was published in The Hindu Business Line on February 18, 2021. It talks about...

19 Feb 2021 Growth & Development
Draft Blue Economy Policy

Why in News Recently, the Ministry of Earth Sciences (MoES) has rolled out the draft Blue Economy policy, inviting suggestions and inputs from...

18 Feb 2021 Growth & Development
National Coal Index

Why in News Recently, the Ministry of Coal has started commercial auction of coal mines on a revenue share basis using the National Coal Index...

12 Feb 2021 Growth & Development
Impact of Crude Oil Price Hike

Why in News Recently, the price of Brent crude crossed the USD 60 per barrel mark after over a year. The rise in prices is because of production...

11 Feb 2021 Growth & Development
The Big Picture: Budget 2021 for Green Energy

Why in News? The Union Budget for FY 2021-22 presented by the Union Minister of India, has exclusively focussed on Green Energy...

09 Feb 2021 Growth & Development
RBI Monetary Policy 2021

Why in News Recently, the Reserve Bank of India (RBI) has forecasted that real Gross Domestic Product (GDP), hit by the Covid pandemic in 2020-21,...

06 Feb 2021 Growth & Development
Direct Access to G-Sec Market for Retail Investors: RBI

Why in News Recently, the Reserve Bank of India has proposed to allow retail investors to open gilt accounts with the central bank to invest in...

06 Feb 2021 Growth & Development

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		'title' => 'MSME Credit Health Index',
		'description' => '<h3>Why in News</h3>
<p>The latest <strong>MSME Credit Health Index</strong> indicates that MSME credit growth has accelerated in the quarter ending September 2020 as compared to the quarter ending in June 2020.</p>
<ul style="list-style-type: square;">
<li>The <a href="/daily-updates/daily-news-analysis/emergency-credit-line-guarantee-scheme-1#:~:text=The%20Union%20Government%20has%20extended,the%20Scheme%2C%20whichever%20is%20earlier." target="_blank" rel="noopener"><strong>Emergency Credit Line Guarantee Scheme (ECGLS)</strong></a> has helped in the credit growth for the <a href="/to-the-points/paper3/micro-small-and-medium-enterprises-msme" target="_blank" rel="noopener"><strong>Micro, Small and Medium Enterprises (MSME)</strong></a> sector.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the MSME Credit Health Index:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Launch:</strong> The <strong>TransUnion CIBIL</strong> in partnership with the <strong>Ministry of Statistics &amp; Programme Implementation (MoSPI)</strong> has launched MSME Credit Health Index.<br />
<ul style="list-style-type: disc;">
<li>The Index is <strong>published quarterly.</strong></li>
</ul>
</li>
<li><strong>Aim:</strong> To provide <strong>a measure of the growth and strength of the MSME</strong> sector in India.<br />
<ul style="list-style-type: disc;">
<li>The Index will provide government, policy makers, lenders and MSME market participants, a numeric indicator for benchmarking the health of the MSME sector.</li>
</ul>
</li>
<li><strong>Measurement:</strong> The Index measures the credit health of India&rsquo;s MSME industry on two parameters i.e, <strong>growth and strength</strong>. Both the growth and strength indices <strong>follow the principle of higher the better.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Growth</strong> is measured by plotting increase in exposure value (outstanding balances) over time.<br />
<ul style="list-style-type: disc;">
<li>An increasing Growth Index indicates improvement in credit growth.</li>
</ul>
</li>
<li><strong>Strength</strong> is measured by decrease/increase in credit risk in terms of <a href="/daily-updates/daily-news-editorials/solving-the-npa-crisis-in-india" target="_blank" rel="noopener"><strong>non-performing assets (NPA).</strong></a> <br />
<ul style="list-style-type: disc;">
<li>An increasing Strength Index implies better asset quality and therefore denotes an improvement in the structural strength of the sector.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Significance:</strong> This measurement model will facilitate better MSME credit risk management, formulation of strategies and policies to support the revival and resurgence of the MSME sector and the economy.</li>
</ul>
</li>
<li><strong>Latest Data:</strong> <br />
<ul style="list-style-type: circle;">
<li>The overall growth index inched up to 114 points, which is a three-point increase from 111 in June, 2020.</li>
<li>The overall Strength Index also improved to 89 from 83 over the same period.</li>
</ul>
</li>
<li><strong>About the Emergency Credit Line Guarantee Scheme:</strong> <br />
<ul style="list-style-type: circle;">
<li>The scheme was launched as part of the <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Aatmanirbhar Bharat Abhiyan package</strong></a> announced in May 2020 to mitigate the distress caused by <a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19" target="_blank" rel="noopener"><strong>coronavirus</strong></a>-induced lockdown, by providing credit to different sectors, especially <a href="/to-the-points/paper3/micro-small-and-medium-enterprises-msme" target="_blank" rel="noopener"><strong>Micro, Small and Medium Enterprises (MSMEs)</strong></a>.</li>
<li>The ECLGS provides for the <strong>Guaranteed Emergency Credit Line (GECL) facility.</strong> <br />
<ul style="list-style-type: disc;">
<li>The GECL is a loan for which 100% guarantee is provided by the National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) - banks, financial institutions and <a href="/daily-updates/daily-news-editorials/A%20nuanced%20understanding%20of%20the%20NBFC%20sector" target="_blank" rel="noopener"><strong>Non-Banking Financial Companies</strong></a> (NBFCs).</li>
<li>The loans are extended in the form of additional working capital term loan facility in case of banks and additional term loan facility in case of NBFCs to eligible Micro, Small and Medium Enterprises (MSMEs)/business enterprises and interested <a href="/daily-updates/daily-news-analysis/interest-subvention-scheme-for-shishu-loan-accounts" target="_blank" rel="noopener"><strong>Pradhan Mantri Mudra Yojana</strong></a> <strong>(PMMY)</strong> borrowers.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>National Credit Guarantee Trustee Company Ltd</strong></p>
<ul style="list-style-type: square;">
<li>NCGTC is a <strong>private limited compan</strong>y incorporated under the <strong>Companies Act, 1956</strong> in 2014, established by the Department of Financial Services, Ministry of Finance, as a wholly owned company of the Government of India, to act as a common trustee company for multiple credit guarantee funds.<br />
<ul style="list-style-type: circle;">
<li>Credit guarantee programmes are designed to share the lending risk of the lenders and in turn, facilitate access to finance for the prospective borrowers.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/business/Economy/ecgls-helps-push-msme-loan-growth-as-of-end-sept-report/article33999921.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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		'article_id' => (int) 7855,
		'category_id' => (int) 21,
		'title' => 'Technology And Innovation Report 2021: UNCTAD',
		'description' => '<h3>Why in News</h3>
<p>India was the biggest <strong>&lsquo;overperformer&rsquo;</strong> in <a href="/daily-updates/daily-news-editorials/frontier-technologies" target="_blank" rel="noopener"><strong>frontier technologies</strong></a> than the country's per capita <a href="/daily-updates/daily-news-analysis/base-year-for-gdp-calculations" target="_blank" rel="noopener"><strong>Gross Domestic Products (GDP)</strong></a> would suggest, according to a recent country-readiness index of the <strong>Technology And Innovation Report 2021.</strong></p>
<ul style="list-style-type: square;">
<li>The report was released by the<a href="/daily-updates/daily-news-analysis/world-investment-report-unctad" target="_blank" rel="noopener"><strong> United Nations Conference on Trade and Development (UNCTAD).</strong></a></li>
</ul>
<h3>Key Point</h3>
<ul style="list-style-type: square;">
<li><strong>About the Report:</strong> <br />
<ul style="list-style-type: circle;">
<li>The report examines the likelihood of frontier technologies widening existing inequalities and creating new ones.</li>
<li>It also addresses the <strong>national and international policies</strong>, instruments and institutional reforms that are needed to create a more equal world of opportunity for all, <strong>leaving no one behind.</strong></li>
</ul>
</li>
<li><strong>Key Takeaway:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Frontier Tech Market:</strong> The report shows that frontier technologies already represent a USD 350 billion market, which could grow to <strong>USD 3.2 trillion by 2025.</strong></li>
<li><strong>International Cooperation:</strong> It calls for strengthened international cooperation to build innovation capacities in developing countries, facilitate technology transfer.</li>
<li><strong>Inclusive:</strong> Envisages increase women&rsquo;s participation in digital sectors, conduct technological assessments and promote an inclusive debate on the impact of frontier technologies on sustainable development.</li>
<li><strong>Humans and Machines At Work:</strong> Technological change affects inequalities through its impact on jobs, wages and profits in following ways: <br />
<ul style="list-style-type: disc;">
<li><a href="/loksabha-rajyasabha-discussions/policy-watch-robotics-and-automation-in-india" target="_blank" rel="noopener"><strong>Automation</strong></a> taking jobs</li>
<li><strong>Job displacement</strong> can also be accompanied by<strong> job polarization</strong>, which refers to an expansion in high- and low-wage jobs combined with a contraction in middle-wage jobs.</li>
<li>Frontier technologies are being used to provide services via digital platforms that have spurred the creation of a <a href="/daily-updates/daily-news-analysis/gig-economy" target="_blank" rel="noopener"><strong>&lsquo;gig economy&rsquo;.</strong></a></li>
</ul>
</li>
</ul>
</li>
<li><strong>India Specific Findings:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s actual index ranking is 43, while the estimated one based on per capita income is 108.</li>
<li>This meant that <strong>India overperformed</strong> other countries by 65 ranking positions. India was followed by the Philippines, which overperformed by 57 ranking positions.</li>
<li>India performed well in research and development. <br />
<ul style="list-style-type: disc;">
<li>This is reflected in its abundant supplies of qualified and highly skilled human resources available at a comparatively low cost.</li>
</ul>
</li>
<li>However countries such as <strong>the United States, Switzerland</strong> and the <strong>United Kingdom</strong> were <strong>&ldquo;best prepared&rdquo;</strong> for frontier technologies.</li>
</ul>
</li>
<li><strong>Challenges for Developing Countries:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Demographic Changes:</strong> Low-income- and lower-middle-income countries have expanding and younger populations which will increase the supply of labour and depress wages, reducing the incentives for automation.</li>
<li><strong>Lower Technological and Innovation Capabilities:</strong> Low-income countries have fewer skilled people and depend to a large extent on agriculture which tends to be slower to take advantage of new technologies.</li>
<li><strong>Slow Diversification:</strong> Developing countries typically innovate by emulating industrialized countries, diversifying their economies, and absorbing and adapting new technologies for local use, but this process is slowest in the poorest countries.</li>
<li><strong>Weak Financing Mechanisms:</strong> Most developing countries have increased their R&amp;D expenditures, but these are still relatively low. There is very little private funding of industrial technologies for productive applications.</li>
<li><strong>Intellectual Property Rights and Technology Transfer:</strong> Stringent intellectual property protection will restrict the use of frontier technologies that could be valuable in SDGs related areas such as agriculture, health and energy.</li>
</ul>
</li>
<li><strong>Suggestions:</strong><br />
<ul style="list-style-type: circle;">
<li>The Report argues that frontier technologies are essential for <a href="/to-the-points/paper3/sustainable-development-3" target="_blank" rel="noopener"><strong>sustainable development</strong></a>, but they also could accentuate initial inequalities. <br />
<ul style="list-style-type: disc;">
<li>It is up to policies to reduce this risk and make frontier technologies contribute to increasing equality.</li>
</ul>
</li>
<li>A balanced approach building a robust industrial base and promoting frontier technologies is a must for success in the twenty-first century.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Frontier Technologies</strong></p>
<ul style="list-style-type: square;">
<li>Frontier technologies are defined as <strong>potentially disruptive technologies</strong> that can address large-scale challenges or opportunities.</li>
<li>They include <a href="/daily-updates/daily-news-analysis/rise-in-ai-adoption-in-india-amidst-pandemic" target="_blank" rel="noopener"><strong>artificial intelligence (AI)</strong></a><strong>, the <a href="/daily-updates/daily-news-editorials/india-must-get-on-the-iot-highway-fast" target="_blank" rel="noopener">internet of things</a>, big data, blockchain, <a href="/daily-updates/daily-news-analysis/5g-technology-1" target="_blank" rel="noopener">5G</a>, <a href="/daily-updates/daily-news-analysis/formulation-of-policy-for-3d-printing" target="_blank" rel="noopener">3D printing</a>, robotics, drones, <a href="/daily-updates/daily-news-editorials/crispr-technology" target="_blank" rel="noopener">gene editing</a>, <a href="/daily-updates/daily-news-analysis/nanotechnology-and-health" target="_blank" rel="noopener">nanotechnology</a> and solar photovoltaic.</strong></li>
</ul>
<a href="http://www.drishtiias.com/images/uploads/1614943634_image%200.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1614943634_image 0.png" width="650" caption="false" style="display: block; margin-left: auto; margin-right: auto;" /></a>
<p><strong>United Nations Conference on Trade and Development</strong></p>
<ul style="list-style-type: square;">
<li>The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 to promote development-friendly integration of developing countries into the world economy.</li>
<li>UNCTAD is a permanent intergovernmental body headquartered at Geneva in Switzerland.</li>
<li>Some of the <strong>reports published by it are:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Trade and Development Report</strong></li>
<li><strong>World Investment Report</strong></li>
<li><strong>The Least Developed Countries Report</strong></li>
<li><strong>Information and Economy Report</strong></li>
<li><strong>Technology and Innovation Report</strong></li>
<li><strong>Commodities and Development Report</strong></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.downtoearth.org.in/news/science-technology/india-an-overperformer-in-frontier-tech-among-developing-countries-un-report-75769" target="_blank" rel="noopener"><strong>Source: DTE</strong></a></p>',
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		'article_id' => (int) 7832,
		'category_id' => (int) 21,
		'title' => 'Maritime India Summit 2021',
		'description' => '<h3>Why in News</h3>
<p>&lsquo;Maritime India Summit 2021&rsquo; is being organised by the Ministry of Ports, Shipping and Waterways.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Focus Area:</strong> <br />
<ul style="list-style-type: circle;">
<li>To further the port-led development along the 7,516-km long coastline.</li>
<li>India will invest <strong>USD 82 billion</strong> in port projects <strong>by 2035 (under <a href="/daily-updates/daily-news-analysis/sagarmala-seaplane-services" target="_blank" rel="noopener">Sagarmala Programme</a>)</strong>, raise the share of <strong>clean <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan" target="_blank" rel="noopener">renewable energy</a> sources</strong> in the maritime sector, <strong>develop <a href="/daily-updates/daily-news-analysis/use-of-waterways-for-reducing-transportation-cost#:~:text=About%2055%20million%20tonnes%20of,longest%20National%20waterway%20in%20India." target="_blank" rel="noopener">waterways</a></strong> and <strong>boost tourism</strong> around lighthouses.</li>
<li>India aims to operationalise 23 waterways by 2030.</li>
<li>Through the focus areas of <strong>upgradation of infrastructure,</strong> India aims to strengthen the vision of <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Atmanirbhar Bharat.</strong></a></li>
</ul>
</li>
<li><strong>Current Status of Indian Ports:</strong><br />
<ul style="list-style-type: circle;">
<li>India has 12 <a href="/daily-updates/daily-news-analysis/major-port-authorities-bill-2020#:~:text=India%20has%2012%20major%20ports,and%20Kolkata%20(including%20Haldia)." target="_blank" rel="noopener"><strong>major ports</strong></a> and several minor ports along its West and East coast.</li>
<li>Capacity of major ports have increased from <strong>870 million tonnes in 2014 to 1550 million tonnes</strong> in 2021.</li>
<li>Indian ports have measures such as: <strong>Direct port Delivery, Direct Port Entry</strong> and an upgraded <a href="/daily-updates/daily-news-analysis/port-community-system-pcs-1x" target="_blank" rel="noopener"><strong>Port Community System (PCS)</strong></a> for easy data flow that has helped in reduced waiting time for inbound and outbound cargo.</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li>It will help in growth of the maritime sector and promote India as a leading<a href="/to-the-points/paper3/blue-economy" target="_blank" rel="noopener"><strong> Blue Economy</strong> </a>of the world.</li>
<li>Further the <a href="/daily-updates/daily-news-analysis/maritime-vision-2030" target="_blank" rel="noopener"><strong>Maritime India Vision 2030.</strong></a></li>
</ul>
</li>
<li><strong>Other Initiatives for Port Development:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>The Sagar-Manthan:</strong> Mercantile Marine Domain Awareness Centre has also been launched. <br />
<ul style="list-style-type: disc;">
<li>It is an information system for enhancing maritime safety, search and rescue capabilities, security and marine environment protection.</li>
</ul>
</li>
<li><strong>Ship repair clusters</strong> will be developed along both coasts by 2022.</li>
<li><strong>Domestic ship recycling industry</strong> will also be promoted to create <a href="/daily-updates/daily-news-analysis/waste-to-energy-plants" target="_blank" rel="noopener"><strong>'Wealth from Waste'.</strong></a> <br />
<ul style="list-style-type: disc;">
<li>India has enacted <a href="/daily-updates/daily-news-analysis/hong-kong-convention-for-ship-recycling" target="_blank" rel="noopener"><strong>Recycling of Ships Act, 2019</strong></a> and agreed to the <strong>Hong Kong International Convention.</strong></li>
</ul>
</li>
<li>India aims to increase usage of<strong> renewable energy</strong> to more than 60% of total energy by 2030 across Indian ports.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Sagarmala Programme</strong></p>
<ul style="list-style-type: square;">
<li>The Sagarmala Programme was <strong>approved by the Union Cabinet in 2015</strong> which aims at holistic port infrastructure development along the 7,516-km long coastline through modernisation, mechanisation and computerisation.</li>
<li>Under this port-led development framework, the government hopes to increase its cargo traffic three-fold.</li>
<li>It also includes the establishment of rail/road linkages with the port terminals, thus providing last-mile connectivity to ports; development of linkages with new regions, enhanced multi-modal connectivity including rail, inland water, coastal and road services.</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1701886" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 7818,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Modernising the Armed Forces',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/lKg6SM6wSH8" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>Addressing a webinar on the effective implementation of the provisions of the <a href="/current-affairs-news-analysis-editorials/news-analysis/03-02-2021" target="_blank" rel="noopener"><strong>Union Budget 2021-22</strong></a> in the defence sector, the Prime Minister listed a series of measures taken to boost self-reliance in the defence sector.
<ul style="list-style-type: circle;">
<li>The PM regrets the fact that the country is amongst the biggest defence importers in the world but now, it is working hard to change the situation and also to enhance its capacities and capabilities at a fast pace.</li>
</ul>
</li>
<li>A total amount of Rs 4.78 lakh crore has been earmarked for the Ministry of Defence in the Budget, with a nearly 19% increase in capital outlay.
<ul style="list-style-type: circle;">
<li>A share of the budget has been reserved for domestic procurement.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>India&rsquo;s Imports:</strong> India is the<strong> second largest importer in defence</strong> procurement in the world after Saudi Arabia.</li>
<li><strong>PPP Model:</strong> Rs. 2,000 crore worth 7 projects have been proposed in <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding." target="_blank" rel="noopener"><strong>Public Private Partnership (PPP)</strong></a> mode in the FY 2021-22 for operation of<strong> major ports.</strong>
<ul style="list-style-type: circle;">
<li>The private sector has been urged to come forward and take up the responsibilities of both designing and manufacturing of defence equipment.</li>
</ul>
</li>
<li><strong>Less Importance to the Navy:</strong> The navy has not been given much importance as required.
<ul style="list-style-type: circle;">
<li>The share of the budget for the navy is <strong>slightly under 15%</strong> which is an increment from a few years back to around 12&frac12;% but the same was 18% in the FY 2011-12.</li>
</ul>
</li>
<li><strong>Negative List:</strong> The &lsquo;negative import list&rsquo; has been prepared by the government containing items that India seeks to stop buying from other countries.
<ul style="list-style-type: circle;">
<li>The government listed various items including weapons systems and assault rifles.</li>
</ul>
</li>
</ul>
<h3>Current Scenario of the Defence Sector</h3>
<ul style="list-style-type: square;">
<li><strong>Airforce:</strong> India is gradually moving toward indigenisation in the defence sector, it is only now that India has got its own indigenous aircraft, <a href="/daily-updates/daily-news-analysis/lca-tejas-1" target="_blank" rel="noopener"><strong>Tejas</strong></a>.
<ul style="list-style-type: circle;">
<li>India is lagging behind in manufacturing of its own engines, avionics and self-sufficient radars.</li>
<li>A lot of<strong> progress in design and development</strong> of different parts of aircrafts has been made but when it comes to a compact aircraft system or a weapon system, <strong>India is a seeker not a manufacturer.</strong></li>
</ul>
</li>
<li><strong>Army:</strong> The Indian army is still woefully short on looking upon manufacturing of armaments like tanks.
<ul style="list-style-type: circle;">
<li>India has made a great breakthrough in terms of artillery guns but the technological edge required to modernise its equipment has not been touched yet.</li>
</ul>
</li>
<li><strong>Navy:</strong> The navy ought to be given more importance than it has been given as of now as there are immense challenges at the sea; the biggest threat is <a href="/daily-updates/daily-news-analysis/china-s-rising-influence-in-south-asia" target="_blank" rel="noopener"><strong>China</strong></a>.
<ul style="list-style-type: circle;">
<li>The Navy has very serious capability gaps; as per the <strong>Maritime Capability Perspective Plan by 2027,</strong> India ought to have about <strong>200 ships</strong> but there is still a lot to cover to reach the target.
<ul style="list-style-type: disc;">
<li>However, the cause is not mainly funding but procedural delays or some self imposed restrictions.</li>
</ul>
</li>
<li>However, the navy ensures that it has<strong> state of the art SONARs and Radars.</strong> Also, many of the ships contain a high amount of indigenous content.</li>
</ul>
</li>
</ul>
<h3>Initiatives for Modernisation of the Defence Sector</h3>
<ul style="list-style-type: square;">
<li><strong>Capital Acquisition Budget (CAB):</strong> The Defence Ministry has decided to earmark around 64% of its modernisation funds under the capital acquisition budget for 2021-22, a sum of Rs 70,221 crore for purchases from the domestic sector.
<ul style="list-style-type: circle;">
<li>For FY 2020-21, the capital budget allocation for domestic vendors was made at 58%, an amount of Rs 52,000 crore.</li>
</ul>
</li>
<li><strong>MSMEs and Startups:</strong> This increase in CAB will have a positive impact on enhanced domestic procurement, having a multiplier effect on the industries including <a href="/to-the-points/paper3/micro-small-and-medium-enterprises-msme" target="_blank" rel="noopener"><strong>MSMEs</strong></a> and start-ups.
<ul style="list-style-type: circle;">
<li>The <a href="/daily-updates/daily-news-analysis/def-connect-2019" target="_blank" rel="noopener"><strong>Defence India Startup Challenge (DISC)</strong></a> started by the defence ministry shall be lauded; over 1200 MSMEs participated in the fourth edition of the DISC in 2020.</li>
</ul>
</li>
<li><strong>Self-Reliant and Make-in India:</strong> It would also increase employment in the defence sector. Hence, it is a welcome step towards encouraging <a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atma Nirbhar Bharat</strong></a> and <a href="/daily-updates/daily-news-editorials/five-years-of-make-in-india" target="_blank" rel="noopener"><strong>Make in India</strong></a>.
<ul style="list-style-type: circle;">
<li>The government in its negative list, has included light combat helicopters, artillery guns; these items will not be imported by anyone thus encouraging self-reliant India.</li>
<li>The SRIJAN portal has also been launched to facilitate the two initiatives. .</li>
</ul>
</li>
<li><strong>Other Efforts:</strong> The government has taken initiatives like de-licensing, deregulation, export promotion, encouraging <a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"><strong>FDI</strong></a> etc to liberalise the defence industry.
<ul style="list-style-type: circle;">
<li>In the last 3 years, 118 of the total 191 projects which have been sanctioned have gone to the Indian industries.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated to Modernisation</h3>
<ul style="list-style-type: square;">
<li><strong>Decision Making Process:</strong> The entire <strong>acquisition process of India is very tardy</strong> and the time taken from planning to acquire a defence equipment to actually executing the thought is a quite long procedure.
<ul style="list-style-type: circle;">
<li>Lowering down this time taking procedure to maximum 1-2 years is a big challenge.</li>
</ul>
</li>
<li><strong>Public Sector Manufacturing and Capability:</strong> The public defence manufacturing sector has really not been able to deliver the way it was mandated to.
<ul style="list-style-type: circle;">
<li>The sector by itself is not anymore able to cater to all the needs of the defence sector which is why involvement of the private sector should be encouraged.</li>
</ul>
</li>
<li><strong>Manufacturing Sector:</strong> India<strong> lacks a proper industrial base</strong> for the manufacturing of defence equipment.
<ul style="list-style-type: circle;">
<li>However, two defence zones have been set up in Tamil Nadu and in Uttar Pradesh which will provide the private sector with a base to operate upon.
<ul style="list-style-type: disc;">
<li>This will reinvigorate the whole defence economy once these zones come up and begin their manufacturing.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Holding the Hands:</strong> Getting the private sector into manufacturing; giving them <strong>opportunities to flourish</strong> in the sector and <strong>assuring them</strong> their efforts or investments in the field would not go waste.
<ul style="list-style-type: circle;">
<li>The cost of manufacturing a particular weapon system is considerably high and if the private sector still manages to bear that high cost but the system does not get procured then the private sector cannot undertake such a huge loss.</li>
<li>Moreover, there needs to be clarity in the government policies launched particularly for the private sector and enough boost to be provided to the PSU sector.</li>
</ul>
</li>
<li><strong>Investing in the Defence Economy:</strong> The defence economy is not a loss making venture.
<ul style="list-style-type: circle;">
<li>If India modernises its defence sector and reduces the defence imports, it can increase its <a href="/daily-updates/daily-news-analysis/base-year-for-gdp-calculations" target="_blank" rel="noopener"><strong>GDP</strong></a> by 2-3% and create lakhs of jobs.</li>
<li>It is a <strong>win-win situation and economically profitable.</strong>
<ul style="list-style-type: disc;">
<li>As GDP will go up and India will not only become self reliant in the sector but also an exporter.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Modernising the Ports:</strong> It is not just the shipbuilding but the entire structure of the ports needs a revamp.
<ul style="list-style-type: circle;">
<li>The<a href="/daily-updates/daily-news-analysis/sagarmala-seaplane-services" target="_blank" rel="noopener"><strong> Sagarmala project</strong></a> is one such initiative to revamp port infrastructure.</li>
</ul>
</li>
<li><strong>Integration the Entire Marine System:</strong> Maritime response to the neighbouring nations is not only about providing the naval support but a much larger contribution of marine merchants, fisheries and its capacity to trade.
<ul style="list-style-type: circle;">
<li>There is also a <strong>need for a coordinating body at the apex level</strong> that assists in integrating all these sectors.</li>
</ul>
</li>
<li><strong>Utilisation of blue economy:</strong> India has an <strong>imperative need of exploiting the <a href="/to-the-points/paper3/blue-economy" target="_blank" rel="noopener">blue economy</a></strong> to its best , not only for itself but also it has responsibility towards the smaller neighbouring nations who have invested their faith within India in terms of their maritime security.
<ul style="list-style-type: circle;">
<li>India has to develop its maritime industrial infrastructure so that it has the ability to look after its own requirements and the requirements of its immediate maritime neighbours.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>The government is taking the right steps towards becoming atma nirbhar but there is a need to boost defence PSUs and give them specific tasks to fulfill the desires of defence sector.</li>
<li>Efforts are being continuously made to bring a new policy to get the private sector involved.
<ul style="list-style-type: circle;">
<li>However, it still needs a lot to be done in terms of holding and uplifting them and assuring them that their efforts will not go wasted.</li>
</ul>
</li>
<li>There is an urgent need to focus on the navy in order to ensure India&rsquo;s maritime security.
<ul style="list-style-type: circle;">
<li>Revamping and modernising the ports, shifting from a seeker to a manufacturer and getting a hold on that technical edge that has eluded India.</li>
</ul>
</li>
</ul>',
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	(int) 4 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7807,
		'category_id' => (int) 21,
		'title' => 'India Emerged Out of Technical Recession',
		'description' => '<h3>Why in News</h3>
<p>The Indian economy has emerged out of<strong> technical recession</strong> as it <strong>grew at 0.4% in the third (October-December) quarter of 2020-21</strong> with improvement in manufacturing, construction and agriculture.</p>
<ul style="list-style-type: square;">
<li>The <a href="/daily-updates/daily-news-analysis/contraction-in-gdp-of-india-in-2020-21-world-bank#:~:text=According%20to%20the%20recent%20National,April%2DJune)%20in%202019." target="_blank" rel="noopener"><strong>Gross Domestic Product (GDP)</strong> </a>had contracted by 24.4% and 7.3% in the April-June and July-September quarters, respectively, marking a technical recession in the aftermath of the Covid-19 pandemic.</li>
<li>A<a href="/daily-updates/daily-news-analysis/technical-recession-in-india" target="_blank" rel="noopener"><strong> technical recession</strong></a> is when a country<strong> faces a continuous decline</strong> for two consecutive quarters in the GDP.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Growth Projections:</strong> <br />
<ul style="list-style-type: circle;">
<li>For the<strong> full fiscal year (2020-21),</strong> the <a href="/daily-updates/daily-news-analysis/restructuring-of-indian-statistical-system" target="_blank" rel="noopener"><strong>National Statistical Office (NSO)</strong></a> has projected <strong>a contraction of 8%,</strong> higher than the forecasts of the <a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener"><strong>Economic Survey</strong></a> (7.7%) and the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India</strong></a> (7.5%).</li>
<li>The<strong> real GDP growth estimate for the third quarter (2020-21) is at 0.4%.</strong> In the <strong>corresponding quarter last year,</strong> the economy<strong> had grown 3.3%.</strong></li>
<li>For the April-June quarter (Q1) and July-September (Q2), the contraction numbers were revised from 23.9% to 24.4% and 7.5% to 7.3%, respectively.</li>
</ul>
</li>
<li><strong>Growth Across Major Sectors: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Industries and Services Sector:</strong> <br />
<ul style="list-style-type: disc;">
<li>With improved performance of manufacturing, electricity and construction, <strong>industry recorded a growth rate of 2.6% in the third quarter</strong> against the contraction in the first two.</li>
<li>However, <strong>services,</strong> with the largest share in GDP at 57%,<strong> still remained in the contraction zone with a 0.9%</strong> fall year-on-year.<br />
<ul style="list-style-type: disc;">
<li><strong>Financial, real estate and professional services grew 6.6% as against 9.5% contraction</strong> in the previous quarter and 5.5% growth in the corresponding period last year.</li>
<li><strong>Mining, trade, hotels, transport, communication and broadcasting services and public administration services continued to stay in the negative territory</strong> in the third quarter registering a contraction of 5.9 %, 7.7%, and 1.5%, respectively.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Cores Sector Output:</strong> <br />
<ul style="list-style-type: disc;">
<li>India&rsquo;s eight core sectors<strong> recorded a meagre 0.1% rise in output</strong> in January 2021, propped up by a 5.1% rise in electricity, 2.7% growth in fertilizers and 2.6% growth in steel production, even as the other five sectors contracted.</li>
<li>Coal, crude oil, natural gas, refinery products, and cement recorded negative growth in January.</li>
<li>The <strong>eight core industries constitute 40.27% of the <a href="/daily-updates/daily-news-analysis/index-of-industrial-production-iip" target="_blank" rel="noopener">Index of Industrial Production. </a></strong></li>
</ul>
</li>
<li><strong>Agriculture:</strong> <br />
<ul style="list-style-type: disc;">
<li>Growth in agriculture <strong>jumped 3.9% in October-December</strong> compared with 3% growth in July-September and 3.4% growth during the corresponding quarter last year.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>New Investment:</strong> <br />
<ul style="list-style-type: disc;">
<li>The positive momentum seen in investment demand<strong> (Gross Fixed Capital Formation - GFCF)</strong> as it<strong> grew by 2.6%</strong> in the third quarter after being in doldrums for several quarters now.<br />
<ul style="list-style-type: disc;">
<li><strong>GFCF:</strong> It is essentially net investment. It is a component of the Expenditure method of calculating GDP.</li>
</ul>
</li>
<li>This is the result of unrelenting efforts of the government to go all-out to revive investments under the ambit of the various measures which formed a part of the <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Atma Nirbhar Bharat</strong></a> package.</li>
<li>Going forward, the growth stimuli available from the <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-health-and-wellbeing" target="_blank" rel="noopener"><strong>Union Budget 2021-22</strong></a> and the additional measures including the <a href="/daily-updates/daily-news-analysis/pli-scheme-for-ten-more-sectors" target="_blank" rel="noopener"><strong>Production-Linked Incentive (PLI)</strong> </a>will lead to a strong growth path over the recovery horizon.</li>
</ul>
</li>
<li><strong>Increase in Centre&rsquo;s Capital Expenditure:</strong> <br />
<ul style="list-style-type: disc;">
<li>The resurgence of <strong>Government Final Consumption Expenditure (GFCE)</strong> in Q3 and Centre&rsquo;s capital expenditure increased year-on-year by 129% in October, 249% in November and 62% in December. <br />
<ul style="list-style-type: disc;">
<li><strong>GFCE</strong> is an aggregate transaction amount on a country's national income accounts representing government expenditure on goods and services that are used for the direct satisfaction of individual needs (individual consumption) or collective needs of members of the community.</li>
</ul>
</li>
</ul>
</li>
<li><strong>V-shaped recovery:</strong> <br />
<ul style="list-style-type: disc;">
<li>The Q3 GDP numbers showed the success of the government&rsquo;s initial policy of<strong> &ldquo;lives over livelihood&rdquo;.</strong> &ldquo;The<a href="/daily-updates/daily-news-analysis/shapes-of-economic-recovery" target="_blank" rel="noopener"><strong> sharp V- shaped recovery</strong></a> has been driven by rebounds in both<strong> Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF)</strong> as a combination of astute handling of the lockdown and a calibrated fiscal stimulus.<br />
<ul style="list-style-type: disc;">
<li><strong>PFCE:</strong> It is defined as the expenditure incurred by the resident households and non-profit institutions serving households (NPISH) on final consumption of goods and services, whether made within or outside the economic territory.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Economic Indicators:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Domestic Consumption:</strong> Disaggregated data show that <strong>domestic consumption continued to contract,</strong> at 58.6% of GDP in Q3, as against 60.2% during the corresponding period of last fiscal.</li>
<li><strong>Government Spending:</strong> Government spending, as reflected by the GFCE, dipped a tad to 9.8% of GDP in Q3 from 10% during Q2.</li>
<li><strong>GVA Estimates:</strong> The growth rate in terms of gross value added (GVA) &mdash; which is <strong>GDP minus net product taxes,</strong> and reflects growth in supply &mdash; is seen<strong> contracting 6.5% in 2020-21</strong> as against earlier estimates of 7.2% and 3.9% in the previous year.</li>
<li><strong>GDP in Nominal Terms:</strong> It <strong>factors in inflation,</strong> and is estimated at (-) 3.8% in 2020-21.</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/Economy/india-out-of-recession-gdp-grows-04/article33944999.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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	(int) 5 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7802,
		'category_id' => (int) 21,
		'title' => 'Flexible Inflation Target',
		'description' => '<h3>Why in News</h3>
<p>The<a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong> Reserve Bank of India (RBI)</strong></a> in its <strong>Currency and Finance (RCF) report</strong> for the year 2020-21 has said that the <strong>current inflation target band (4% +/-2%) is appropriate for next 5 years.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Inflation Targeting:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Meaning:</strong> <br />
<ul style="list-style-type: disc;">
<li>It is <strong>a central banking policy</strong> that revolves around <strong>adjusting monetary policy to achieve a specified annual rate of inflation.</strong></li>
<li>The principle of inflation targeting is <strong>based on the belief that long-term economic growth is best achieved by maintaining price stability,</strong> and price stability is achieved by controlling inflation.</li>
</ul>
</li>
<li><strong>Strict inflation targeting</strong> is adopted when the central bank is only concerned about keeping inflation as close to a given inflation target as possible, and nothing else.</li>
<li><strong>Flexible inflation targeting</strong> is adopted when the central bank is to some extent also concerned about other things, for instance, the stability of interest rates, exchange rates, output and employment.</li>
</ul>
</li>
<li><strong>India&rsquo;s Flexible Inflation Target Framework:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: disc;">
<li>The central bank and the government <strong>agreed in 2015 on a policy framework</strong> that stipulated a primary objective of ensuring price stability while keeping in mind the objective of growth.</li>
<li>The<strong> Flexible Inflation Target (FIT) was adopted in 2016.</strong> This has <strong>put India on par with other nations in terms of flexible inflation targeting.</strong></li>
<li>The<strong> Reserve Bank of India Act, 1934 was amended to provide a statutory basis</strong> for a FTI framework.</li>
<li>The amended Act <strong>provides for the inflation target to be set</strong> by the Government, in consultation with the RBI, <strong>once every five years.</strong></li>
</ul>
</li>
<li><strong>The FIT Framework:</strong> <br />
<ul style="list-style-type: disc;">
<li>India <strong>adopted a flexible inflation targeting mandate of 4 (+/-2) percent</strong> and headline <a href="/daily-updates/daily-news-analysis/contraction-in-index-of-industrial-production" target="_blank" rel="noopener"><strong>consumer price inflation</strong></a> was chosen as a <strong>key indicator.</strong></li>
</ul>
</li>
<li><strong>Purpose:</strong> Inflation targeting is known to bring more stability, predictability, and transparency in deciding monetary policy. <br />
<ul style="list-style-type: disc;">
<li>This is because of the argument that rising prices create uncertainties and adversely affect savings and investments.</li>
</ul>
</li>
<li><strong>Fixed Accountability:</strong> The framework made the RBI more accountable to explain to the government if it fails to meet the inflation targets. <br />
<ul style="list-style-type: disc;">
<li>The flip side of this is such targets will restrain the RBI from taking any tight or accommodating monetary policy stance.</li>
</ul>
</li>
</ul>
</li>
<li><strong>RBI&rsquo;s Stand (Findings of the RCF Report):</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>trend <a href="/daily-updates/daily-news-editorials/return-of-inflation" target="_blank" rel="noopener">inflation</a> has fallen from above 9% before FIT to a range of 3.8-4.3 % during FIT,</strong> indicating that <strong>4% is the appropriate level of the inflation target</strong> for the country.</li>
<li>An <strong>inflation rate of 6% is the appropriate upper tolerance limit</strong> for the inflation target.<br />
<ul style="list-style-type: disc;">
<li>On the other hand, <strong>a lower bound above 2% can lead to actual inflation frequently dipping below the tolerance band.</strong></li>
<li>While, <strong>a lower bound below 2% will hamper growth,</strong> indicating that an<strong> inflation rate of 2% is the appropriate lower tolerance bound.</strong></li>
</ul>
</li>
<li>During the FIT period, <strong>monetary transmission has been full and reasonably swift</strong> across the money market (trading in very short-term debt instruments) but less than complete in the <a href="/daily-updates/daily-news-analysis/special-zero-coupon-recapitalisation-bonds" target="_blank" rel="noopener"><strong>bond markets.</strong></a><br />
<ul style="list-style-type: disc;">
<li>While there has been an improvement in transmission to lending and deposit rates of banks, <a href="/daily-updates/daily-news-analysis/external-benchmark-rates" target="_blank" rel="noopener"><strong>external benchmarks</strong></a> across all categories of loans and deposits could improve transmission.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Monetary Policy</strong></p>
<ul style="list-style-type: square;">
<li>It is the macroeconomic policy laid down by the central bank. It involves <strong>management of money supply and interest rate</strong> and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.</li>
<li>In India, monetary policy of the Reserve Bank of India is<strong> aimed at managing the quantity of money in order to meet the requirements of different sectors</strong> of the economy and to increase the pace of economic growth.</li>
<li>The RBI implements the monetary policy through <strong>open market operations, bank rate policy, reserve system, credit control policy, moral persuasion</strong> and through many other instruments.</li>
</ul>
<p><strong>Accommodative and Tight Monetary Policy</strong></p>
<ul style="list-style-type: square;">
<li>To avoid inflation, most central banks alternate between the accommodative monetary policy and the tight monetary policy in varying degrees to encourage growth while keeping inflation under control. <br />
<ul style="list-style-type: circle;">
<li><strong>Accommodative monetary policy</strong> is adopted when central banks expand the money supply to boost the economy. <br />
<ul style="list-style-type: disc;">
<li>These measures are meant to make money less expensive to borrow and encourage more spending.</li>
</ul>
</li>
<li>A<strong> tight monetary policy</strong> is implemented to contract economic growth. <br />
<ul style="list-style-type: disc;">
<li>Converse to accommodative monetary policy, a tight monetary policy involves increasing interest rates to constrain borrowing and to stimulate savings.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><strong>Monetary Policy Committee</strong></p>
<ul style="list-style-type: square;">
<li>It is <strong>a statutory and institutionalized framework under the Reserve Bank of India Act, 1934,</strong> for maintaining price stability, while keeping in mind the objective of growth.<br />
<ul style="list-style-type: circle;">
<li>The <strong>Governor of RBI is ex-officio Chairman</strong> of the committee.</li>
</ul>
</li>
<li>The MPC<strong> determines the policy interest rate (<a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi#:~:text=Key%20Points,lends%20money%20to%20commercial%20banks." target="_blank" rel="noopener">repo rate</a>)</strong> required to achieve the <strong>inflation target (4%).</strong><br />
<ul style="list-style-type: circle;">
<li>An RBI-appointed committee led by the<strong> then deputy governor Urjit Patel in 2014 recommended</strong> the establishment of the Monetary Policy Committee.</li>
</ul>
</li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>In the conduct of monetary policy in an open economy setting, <a href="/daily-updates/daily-news-analysis/forex-reserves-2" target="_blank" rel="noopener"><strong>foreign exchange reserves</strong> </a>and associated liquidity management are key, there is a need to enhance the RBI&rsquo;s sterilisation capacity to deal with surges in capital flows.</li>
<li>The primary focus of FIT on price stability augurs well for further liberalisation of the capital account and eventual internationalisation of the Indian rupees.</li>
</ul>
<p><a href="https://www.thehindu.com/business/Economy/current-inflation-target-band-appropriate-for-next-5-years-rbi-report/article33942481.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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	(int) 6 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7786,
		'category_id' => (int) 21,
		'title' => 'PLI Scheme for IT Hardware and Pharmaceuticals',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Union Cabinet has cleared <a href="/daily-updates/daily-news-analysis/pli-scheme-for-ten-more-sectors" target="_blank" rel="noopener"><strong>Production-Linked incentive (PLI)</strong></a> schemes for <a href="/daily-updates/daily-news-editorials/india-s-pharma-sector" target="_blank" rel="noopener"><strong>pharmaceuticals</strong></a> and<strong> IT hardware,</strong> including laptops, which would cost the government as much as Rs. 22,350 crore.</p>
<ul style="list-style-type: square;">
<li>Earlier, the government had announced the <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>PLI scheme for medical devices, mobile phones</strong></a> and specified active pharmaceutical ingredients, with a proposed outlay of Rs. 51,311 crore.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>It aims to give companies<strong> incentives on incremental sales</strong> from products manufactured in domestic units.</li>
<li>It invites foreign companies to set units in India, however, it also <strong>aims to encourage local companies</strong> to set up or expand existing manufacturing units.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1614327847_image1.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1614327847_image1.png" style="display: block; margin-left: auto; margin-right: auto;" width="350" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>IT Hardware Sector:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>The scheme, worth Rs. 7350 crore, will <strong>offer 1-4% cash incentives</strong> on net incremental sales (over<strong> base year</strong> 2019-20) for IT products manufactured in India.</li>
<li>The <strong>Target Segments</strong> include Laptops, Tablets, All-in-One PCs and Servers.</li>
<li><strong>Duration:</strong> 4 years</li>
</ul>
</li>
<li><strong>Benefits:</strong><br />
<ul style="list-style-type: disc;">
<li>India will be well positioned as a global hub for <strong>Electronics System Design and Manufacturing (ESDM)</strong> on account of integration with global value chains, thereby becoming a destination for IT Hardware exports.</li>
<li><strong>Employment Generation</strong> potential of over 1,80,000 (direct and indirect) over 4 years.</li>
<li>Provide impetus to <strong>Domestic Value Addition</strong> for IT Hardware which is expected to <strong>rise to 20-25% by 2025.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Pharmaceutical Sector:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>The <strong>Rs. 6,940-crore PLI scheme implemented in 2020</strong> focuses on the critical bulk drugs, whereas <strong>this scheme is likely to focus on other types of bulk drugs.</strong></li>
<li>It intends to give <strong>incentives between 2020-21 and 2028-29 (9 years).</strong></li>
<li><strong>Drug manufacturers</strong> applying for the scheme will have to be registered in India and<strong> will be placed into one of three categories</strong> based on their Global Manufacturing Revenue (GMR).</li>
</ul>
</li>
<li><strong>Categories of Drugs Targeted by the Scheme:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>First Category:</strong><br />
<ul style="list-style-type: disc;">
<li>It includes biopharmaceuticals, complex generics, patented and <a href="/daily-updates/daily-news-analysis/covid-19-and-the-orphan-drug-act" target="_blank" rel="noopener"><strong>orphan drugs</strong></a>, often expensive for which India relies a lot on multinational drug makers.</li>
</ul>
</li>
<li><strong>Second Category:</strong><br />
<ul style="list-style-type: disc;">
<li>It comprises <a href="/daily-updates/daily-news-analysis/report-on-active-pharmaceutical-ingredients-tifac" target="_blank" rel="noopener"><strong>Active Pharmaceutical Ingredients (APIs)</strong></a>, Key Starting Materials (KSMs) and Drug Intermediates (DIs).</li>
</ul>
</li>
<li><strong>Third Category:</strong> <br />
<ul style="list-style-type: disc;">
<li>It includes other critical repurposed, auto-immune, anti-<strong><a href="/daily-updates/daily-news-analysis/national-cancer-awareness-day#:~:text=According%20to%20the%20World%20Health,2018%20against%209.5%20million%20globally." target="_blank" rel="noopener">cancer</a></strong>, anti-diabetic, <a href="/loksabha-rajyasabha-discussions/hiv-new-hope" target="_blank" rel="noopener"><strong>anti-retroviral</strong></a>, anti-infective and <a href="/daily-updates/daily-news-analysis/higher-mortality-from-cardio-vascular-diseases" target="_blank" rel="noopener"><strong>cardiovascular</strong></a> drugs as well as in-vitro diagnostic devices and drugs not manufactured in India.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Incentives:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>For First and Second Category:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>10%</strong> of incremental sales value for the first four year of the scheme, followed by <strong>8%</strong> for the fifth year and<strong> 6%</strong> for the sixth year of production under the scheme.</li>
</ul>
</li>
<li><strong>For Third Category:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>5%</strong> of incremental sales value for the first four years, <strong>4%</strong> for the fifth year and<strong> 3%</strong> for the sixth year.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Benefits of PLI in Pharmaceuticals:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Reduced Dependency on China:</strong><br />
<ul style="list-style-type: disc;">
<li>India&rsquo;s capabilities in APIs have reduced over the years, mostly due to<strong> cheaper alternatives from China.</strong></li>
<li>The pharmaceutical industry here is currently dependent on the bordering country for nearly <strong>70% of the bulk drugs it imports.</strong></li>
</ul>
</li>
<li><strong>Enhance Exports:</strong><br />
<ul style="list-style-type: disc;">
<li>The Indian pharmaceutical industry is the third-largest globally in terms of the volume term of production and is worth <strong>USD 40 billion in value.</strong></li>
<li>The country contributes <strong>3.5% of total drugs and medicines exported globally.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/india/govt-clears-pli-scheme-to-boost-manufacturing-of-laptops-tablets-pcs-7202926/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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	(int) 7 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7773,
		'category_id' => (int) 21,
		'title' => 'National Hydrogen  Energy Mission',
		'description' => '<h3>Why in News</h3>
<p>The <a href="/loksabha-rajyasabha-discussions/the-big-picture-budget-2021-for-green-energy" target="_blank" rel="noopener"><strong>Union Budget for 2021-22</strong></a> has announced a<strong> National Hydrogen Energy Mission (NHM)</strong> that will draw up a road map for using hydrogen as an energy source.The initiative has the potential of transforming transportation.</p>
<ul style="list-style-type: square;">
<li><strong>NHM</strong> initiative will capitalise on one of the most abundant elements on earth (Hydrogen) for a cleaner alternative fuel option.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the National Hydrogen Energy Mission:</strong><br />
<ul style="list-style-type: circle;">
<li>Focus on <strong>generation of hydrogen from green power resources.</strong></li>
<li>To <strong>link India&rsquo;s growing renewable capacity with the hydrogen economy.</strong><br />
<ul style="list-style-type: disc;">
<li>India's ambitious goal of 175 GW by 2022 got an impetus in the 2021-22 budget which allocated Rs. 1500 crore for renewable energy development and NHM.</li>
<li>The usage of hydrogen will not only help India in achieving its emission goals under the <a href="/daily-updates/daily-news-analysis/five-years-of-paris-climate-accord" target="_blank" rel="noopener"><strong>Paris Agreement</strong></a>, but will also <strong>reduce import dependency on fossil fuels.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Hydrogen:</strong> <br />
<ul style="list-style-type: circle;">
<li>Hydrogen is the <strong>lightest</strong> and <strong>first element</strong> on the <strong>periodic table.</strong> Since the <strong>weight of hydrogen is less than air</strong>, it rises in the atmosphere and is therefore <strong>rarely found in its pure form, H<sub>2</sub>.</strong></li>
<li>At standard temperature and pressure, hydrogen is a nontoxic, nonmetallic, odorless, tasteless, colorless, and <strong>highly combustible diatomic gas.</strong></li>
<li>Hydrogen fuel is a zero-emission fuel burned with oxygen. It can be <strong>used in fuel cells or internal combustion engines.</strong> It is also used as a <strong>fuel for spacecraft propulsion.</strong></li>
<li><strong>Type of Hydrogen:</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Grey Hydrogen:</strong><br />
<ul style="list-style-type: disc;">
<li>Constitutes India&rsquo;s bulk Production.</li>
<li>Extracted from hydrocarbons (fossil fuels, natural gas).</li>
<li>By product: CO<sub>2</sub></li>
</ul>
</li>
<li><strong>Blue Hydrogen:</strong><br />
<ul style="list-style-type: disc;">
<li>Sourced from fossil fuels.</li>
<li>By product: CO, CO<sub>2</sub></li>
<li><strong>By products are Captured and Stored</strong>, so better than gey hydrogen.</li>
</ul>
</li>
<li><strong>Green Hydrogen:</strong><br />
<ul style="list-style-type: disc;">
<li>Generated from renewable energy (like Solar, Wind).</li>
<li>Electricity splits water into hydrogen and oxygen.</li>
<li>By Products : Water, Water Vapor</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Asia-Pacific Stance:</strong><br />
<ul style="list-style-type: circle;">
<li>In Asia-Pacific sub-continent, <strong>Japan</strong> and <strong>South Korea</strong> are on the <strong>front foot</strong> in terms of <strong>hydrogen policy making.</strong></li>
<li>In 2017, <strong>Japan</strong> formulated the <strong>Basic Hydrogen Strategy</strong> which sets out the country&rsquo;s action plan till 2030, including the establishment of an international supply chain.</li>
<li><strong>South Korea</strong> is operating hydrogen projects and <a href="/daily-updates/daily-news-analysis/hydrogen-fuel-cell-based-bus-and-car-project" target="_blank" rel="noopener"><strong>Hydrogen Fuel Cell</strong></a> production units under the auspices of its <strong>Hydrogen Economy Development and Safe Management of Hydrogen Act, 2020.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>South Korea</strong> has also passed the Economic Promotion and Safety Control of Hydrogen Act, which deals with three key areas - <strong>hydrogen vehicles, charging stations</strong> and <strong>fuel cells.</strong> This law is <strong>intended to bring transparency to the nation&rsquo;s hydrogen pricing system.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Indian Context:</strong><br />
<ul style="list-style-type: circle;">
<li>India has <strong>a huge edge in green hydrogen production</strong> owing to its <strong>favorable geographic conditions</strong> and presence of <strong>abundant natural elements.</strong></li>
<li>The government has given impetus in <strong>scaling up the gas pipeline infrastructure</strong> across the length and breadth of the country, and has introduced reforms for the power grid, including the <strong>introduction of smart grids.</strong> Such steps are being taken t<strong>o effectively integrate renewable energy in the present energy mix.</strong></li>
<li>Capacity addition to renewable power generation, storage and transmission, <strong>producing green hydrogen in India can become cost effective</strong> which will not only guarantee energy security, but also ensure self-sufficiency gradually.</li>
</ul>
</li>
<li><strong>Policy Challenges :</strong><br />
<ul style="list-style-type: circle;">
<li>One of the biggest challenges faced by the industry for using hydrogen commercially is the <strong>economic sustainability of extracting green or blue hydrogen.</strong><br />
<ul style="list-style-type: disc;">
<li>The technology used in production and use of hydrogen like <strong>Carbon Capture and Storage (CCS)</strong> and <strong>hydrogen fuel cell technology are at nascent stage</strong> and are expensive which in turn increases the cost of production of hydrogen.</li>
</ul>
</li>
<li><strong>Maintenance costs</strong> for fuel cells post-completion of a plant can be costly.</li>
<li>The commercial usage of hydrogen as a fuel and in industries <strong>requires mammoth investment in R&amp;D of such technology and infrastructure</strong> for production, storage, transportation and demand creation for hydrogen.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>At this juncture, with a calibrated approach, India can uniquely position itself to take advantage <strong>with increasing investment in R&amp;D, capacity building, compatible legislation</strong>, and the <strong>opportunity for creation of demand</strong> among its vast population. Such initiatives can propel India to become the most favored nation by exporting hydrogen to its neighbors and beyond.</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/electric-vehicle-technology-hydrogen-car-national-hydrogen-mission-7193217/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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	(int) 8 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7758,
		'category_id' => (int) 21,
		'title' => 'Animal Husbandry',
		'description' => '<h3>Why in News</h3>
<p>A variety of policy concerns and the ongoing discussion over <a href="/to-the-points/paper3/agricultural-reforms" target="_blank" rel="noopener"><strong>farm laws</strong></a> have fixed the spotlight on <strong>infrastructure investments necessary</strong> to boost productivity levels and fill critical gaps in production especially in the <a href="/to-the-points/paper3/animal-rearing" target="_blank" rel="noopener"><strong>Animal Husbandry</strong></a>.</p>
<ul style="list-style-type: square;">
<li>As the bulk of establishments in this sector is <strong>concentrated in rural India,</strong> the <strong>socio-economic relevance</strong> of this sector cannot be overstated.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>Animal husbandry refers to <strong>livestock raising and selective breeding.</strong> It is the management and <strong>care of animals in which the genetic qualities</strong> and behavior of animals are further developed for profit.</li>
<li>A large number of<strong> farmers depend upon animal husbandry for their livelihood.</strong> It supports the livelihood of <strong>almost 55% of the rural population.</strong><br />
<ul style="list-style-type: disc;">
<li>As per the <strong><a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener">Economic Survey-2021</a>,</strong> the <strong>contribution of Livestock</strong> in total agriculture and allied sector <a href="/daily-updates/daily-news-analysis/gross-value-added" target="_blank" rel="noopener"><strong>Gross Value Added</strong></a> (at Constant Prices) has <strong>increased from 24.32% (2014-15) to 28.63% (2018-19).</strong></li>
</ul>
</li>
<li>India is the <strong>highest livestock owner of the world.</strong><br />
<ul style="list-style-type: disc;">
<li>As per the <a href="/daily-updates/daily-news-analysis/20th-livestock-census" target="_blank" rel="noopener"><strong>20<sup>th</sup> Livestock Census</strong></a>, the total <strong>Livestock population is 535.78 million in the country</strong> showing an increase of 4.6% over Livestock Census-2012.</li>
</ul>
</li>
<li>Animal rearing has<strong> multidimensional potential.</strong> <br />
<ul style="list-style-type: disc;">
<li>For instance, <a href="/daily-updates/daily-news-editorials/operation-greens-3" target="_blank" rel="noopener"><strong>Operation Flood</strong></a>, launched in 1970, <strong>helped dairy farmers direct their own development, increased milk production</strong> ("a flood of milk"), augmented rural incomes and ensured reasonable prices for consumers.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Importance:</strong><br />
<ul style="list-style-type: circle;">
<li>It has <strong>contributed significantly to the empowerment of women</strong> and has increased their income and role in society.</li>
<li>It is a <strong>major risk mitigation approach for small and marginal farmers,</strong> particularly across the rain-fed regions of India.</li>
<li>It is at the <strong>centre of poverty alleviation programs</strong> from equity and livelihood standpoints.</li>
<li>Livestock productivity has been identified as <strong>one of the seven sources of income</strong> growth by the <strong>Inter-Ministerial Committee under the government&rsquo;s target of doubling farmers' income by the year 2022.</strong></li>
</ul>
</li>
<li><strong>Challenges:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Non-availability</strong> of superior <strong>quality breeding bulls.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Poor quality of semen</strong> produced by many of the laboratories.</li>
</ul>
</li>
<li>Shortage of <strong>fodder resources and ineffective control of animal diseases.</strong></li>
<li><strong>Absence of field oriented conservation</strong> strategy for indigenous breeds.</li>
<li><strong>Lack of skills and quality services</strong> to farmers for improving productivity and <strong>improper infrastructure</strong> to support the sector.</li>
</ul>
</li>
<li><strong>Government Initiatives to Boost this Sector:</strong><br />
<ul style="list-style-type: circle;">
<li><strong><a href="/daily-updates/daily-news-analysis/economic-stimulus-iii" target="_blank" rel="noopener">Animal Husbandry Infrastructure Development Fund</a> (AHIDF):</strong><br />
<ul style="list-style-type: disc;">
<li><strong>About:</strong> This is the first major fund launched by the government that includes a diverse set of stakeholders such as <a href="/daily-updates/daily-news-editorials/farmer-producer-bodies-need-help" target="_blank" rel="noopener"><strong>Farmer Producer Organizations (FPO)</strong></a>, private dairy players, individual entrepreneurs, and non-profits within its ambit.</li>
<li><strong>Launch:</strong> June 2020.</li>
<li><strong>Fund:</strong> It has been set up with an outlay of Rs.15,000 crore.</li>
<li><strong>Aim:</strong> To support private investment in Dairy Processing, value addition and cattle feed infrastructure.</li>
<li><strong>Incentives</strong> will be given for establishing plants for export of <strong>niche products.</strong><br />
<ul style="list-style-type: disc;">
<li>A niche product is a product targeting a specific section of a larger industry and market. Niche products are often (but not always) more expensive than more generic products.</li>
</ul>
</li>
<li>It will also support the establishment of <strong>animal feed plants of varying capacities &ndash;</strong> including setting up <strong>of mineral mixture plants, silage making units, and animal feed testing laboratory.</strong></li>
</ul>
</li>
<li><strong><a href="/daily-updates/daily-news-analysis/national-animal-disease-control-programme-national-artificial-insemination-programme" target="_blank" rel="noopener">National Animal Disease Control Programme</a>:</strong><br />
<ul style="list-style-type: disc;">
<li>It has been launched for <a href="/daily-updates/daily-news-analysis/schemes-to-control-fmd-and-brucellosis" target="_blank" rel="noopener"><strong>Foot and Mouth Disease (FMD) and Brucellosis</strong></a> with a total outlay of Rs.13,343 crore to ensure 100% vaccination of cattle, buffalo, sheep, goat and pig population.</li>
</ul>
</li>
<li><strong><a href="/daily-updates/daily-news-analysis/rashtriya-gokul-mission" target="_blank" rel="noopener">Rashtriya Gokul Mission</a>:</strong><br />
<ul style="list-style-type: disc;">
<li>To develop and conserve indegenous breeds of bovine population.</li>
<li>To enhance milk production and to make it more remunerative to the farmers.</li>
</ul>
</li>
<li><strong>National Livestock Mission:</strong><br />
<ul style="list-style-type: disc;">
<li>Launched in the year 2014-15.</li>
<li>To ensure quantitative and qualitative improvement in livestock production systems and capacity building of all stakeholders.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/national-animal-disease-control-programme-national-artificial-insemination-programme" target="_blank" rel="noopener"><strong>National Artificial Insemination Programme</strong></a>:<br />
<ul style="list-style-type: disc;">
<li>To suggest novel methods of bringing about impregnation in female breeds.</li>
<li>To prevent the spread of certain diseases which are genital in nature, thereby enhancing the efficiency of the breed.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>If investments are undertaken in a timely manner, even as the country seeks an exit out of the <a href="/daily-updates/daily-news-analysis/future-pandemics-and-reduction-measures" target="_blank" rel="noopener"><strong>pandemic</strong></a>-induced economic slowdown, pressure will be reduced across the farm sector with immense benefits for the entire economy.</li>
<li>Macro benefits regarding <a href="/daily-updates/daily-news-editorials/climate-change-and-development-in-india" target="_blank" rel="noopener"><strong>climate change</strong></a> and employment are linked to the Animal Husbandry sector and <strong>enhanced infrastructure</strong> can make processing units more energy-efficient and help mitigate their carbon footprint.</li>
</ul>
<p><a href="https://www.thehindu.com/opinion/op-ed/new-paradigm-in-animal-husbandry/article33907193.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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	(int) 9 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7757,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Roadmap to Implement Infra Projects',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/YTxy8DZWyjA" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-infrastructure" target="_blank" rel="noopener"><strong>Union Budget 2021-2022</strong></a> has given the much-needed fillip to the infrastructure sector.
<ul style="list-style-type: circle;">
<li>The Finance Minister has also announced the setting up of a <strong>Development Finance Institution</strong>, allowing large-scale asset monetisation.</li>
</ul>
</li>
<li>The infrastructure push is expected to not just boost India&rsquo;s post-pandemic economic recovery, but also create jobs.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Hike in Allocation:</strong> There is a <strong>34.5% increment</strong> in the budget allocation for infrastructure as compared to FY 2020-21.</li>
<li><strong>Equal Focus:</strong> Equal emphasis has been given to all the physical infrastructures including roads and highways, railways, urban infrastructure, power, port, shipping and airways, and petroleum and natural gas.
<ul style="list-style-type: circle;">
<li>The highest-ever capital expenditure of Rs 1.08 lakh crore has been allocated for building highways.</li>
</ul>
</li>
<li><strong>Institutional Set-up:</strong> The government has allocated 20,000 crore rupees to set up and capitalize a <strong>developmental financial institution.</strong></li>
<li><strong>Monitoring &amp; Transparency:</strong> A <strong>national monetisation pipeline</strong> will be launched, with a dashboard to track the progress and provide visibility to investors.</li>
</ul>
<div class="border-bg">
<p><strong>National Monetisation Pipeline</strong></p>
<ul style="list-style-type: square;">
<li>The budget for 2021-22 proposes a national monetization pipeline of potential <strong>brownfield</strong> projects.
<ul style="list-style-type: circle;">
<li>Asset monetisation is the process of unlocking the value of investment made in public assets which have not yielded appropriate or potential returns so far.</li>
</ul>
</li>
</ul>
<p><strong>Brownfield Projects</strong></p>
<ul style="list-style-type: square;">
<li>A brownfield investment is when a company or government <strong>entity purchases or leases existing production facilities</strong> to launch a new production activity.
<ul style="list-style-type: circle;">
<li>This is one strategy used in<a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"> <strong>Foreign Direct Investment (FDI).</strong></a></li>
</ul>
</li>
<li>The alternative to this is a greenfield investment, in which a new plant is constructed.</li>
</ul>
</div>
<h3>Focus Areas for Infrastructure Development</h3>
<ul style="list-style-type: square;">
<li><strong>Decongesting the Choke Points:</strong> In addition to the roads and highways that are being built, there should be a focus on decongesting the choke points that connect the highways with the city.</li>
<li><strong>Low-cost Housing:</strong> The infra projects which are going to be confined to mostly tier 1 tier 2 cities, post pandemic the migrant labourers will return to the cities, so the government has to work on low-cost housing so that there&rsquo;s no further plight of temporary accommodation for the labourers .
<ul style="list-style-type: circle;">
<li><strong>Deslumification</strong> of the cities and low-cost housing are some of the priority areas that India shall take into account and act upon.</li>
</ul>
</li>
<li><strong>River Rejuvenation:</strong> It is a major infrastructural push India has to give as every city has a river that is spooning black water.
<ul style="list-style-type: circle;">
<li>Although major action plans for major rivers like the <a href="/daily-updates/daily-news-analysis/national-mission-for-clean-ganga" target="_blank" rel="noopener"><strong>National Mission for Clean Ganga</strong></a> are there, it's not enough, there are many drains and tributaries that are actually contributing to the pollution of the main river.</li>
<li>Also, it is the people living along these river banks that need to be invested in the idea.</li>
</ul>
</li>
<li><strong>Public-Private Partnerships (PPP):</strong> The government cannot entirely invest from its own resources in these infra projects, unless they involve the <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>private sector</strong></a> which can monetise these assets.
<ul style="list-style-type: circle;">
<li>For a reduced delay in completion of infra projects, preferably governments can initially build the projects and then hand over the projects to the private players for operations and maintenance.</li>
</ul>
</li>
</ul>
<h3>Issues Associated</h3>
<ul style="list-style-type: square;">
<li><strong>Lack of Sustainable Finances:</strong> Although the budget allocation for infrastructure is a considerable amount but it is not enough unless augmented with supplementary resources from the market such as the FDI.</li>
<li><strong>Land Issues:</strong> Land is the basic requirement for any infrastructure project. Land acquisition in India is contentious and hence not a very speedy process.</li>
<li><strong>Ineffective Dispute Resolution Mechanism:</strong> A lot of infra projects are mired in the litigation between the executing agencies and the authorities which own the projects.
<ul style="list-style-type: circle;">
<li>The dispute resolution mechanisms are not very quick and effective, therefore the existing investors find it difficult to thrive and the new investors do not feel much comfortable in participating.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Human Resources:</strong> Quality manpower shall be invested to plan, implement, execute and monitor the infrastructure projects well.</li>
<li><strong>Foreign Direct Investments:</strong> Enhancing and permitting FDI, in the sectors where India&rsquo;s R&amp;D is still not at the global level.
<ul style="list-style-type: circle;">
<li>To bring more FDI in India, the legal framework has to be smoothened and a better contract management system and a better dispute resolution mechanism is required.</li>
</ul>
</li>
<li><strong>Encouraging the Private Sector Involvement:</strong> Government by itself putting all the efforts will not bring out the entrepreneurship capabilities within the private sector, which is very much required if India wants to catch up at the global level in terms of providing infrastructure.
<ul style="list-style-type: circle;">
<li>The government has to look at the private sector as a partner and not as a vendor as it is about equal participation towards transformation of the country from an infrastructure perspective.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>A roadmap to implement infrastructure projects with the PPP model will be sustainable and it will reduce the burden on the government's financial capacity.
<ul style="list-style-type: circle;">
<li>Although the private sector is a profit based sector, if regulated in a suitable way, it would be beneficial for the government, the private sector as well as the nation.</li>
<li>Moreover, the announcement of the National Monetisation Pipeline is a welcome move which will not only enhance returns from public investments but also promote balanced regional development.</li>
</ul>
</li>
<li>If India is aiming at world class infrastructure, there are several things that need increased attention and encouragement such as the industry-academia partnership to fillip the R&amp;D sector.</li>
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		'article_id' => (int) 7756,
		'category_id' => (int) 21,
		'title' => 'Scheme of Fund for Regeneration of Traditional Industries',
		'description' => '<h3>Why in News</h3>
<p>The <strong>Ministry of Micro, Small &amp; Medium Enterprises (MSME)</strong> inaugurated 50 artisan-based <a href="/daily-updates/daily-news-analysis/support-and-outreach-initiative-for-msme-sector" target="_blank" rel="noopener"><strong>SFURTI</strong></a> clusters, spread over 18 States, to provide a boost to the MSME sector.</p>
<ul style="list-style-type: square;">
<li>The Ministry of MSME is implementing a Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with a view to organize traditional industries and artisans into clusters to make them competitive and increase their income.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The Ministry of MSME launched this scheme in the year 2005 with the view to promote Cluster development. <br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/important-facts-for-prelims-7th-may-2019" target="_blank" rel="noopener"><strong>Khadi and Village Industries Commission (KVIC)</strong></a> is the nodal Agency for promotion of Cluster development for Khadi as well as for Village Industries products.</li>
</ul>
</li>
<li>SFURTI clusters are of two types i.e., <strong>Regular Cluster</strong> (500 artisans) with Government assistance of up to Rs. 2.5 crore and <strong>Major Cluster</strong> (more than 500 artisans) with Government assistance up to Rs. 5 crore.</li>
<li>The Ministry<strong> supports various interventions</strong> including setting up of infrastructure through Common Facility Centers (CFCs), procurement of new machineries, creating raw material banks, design intervention, improved packaging, improved skills and capacity development, etc.</li>
<li>Besides, the scheme focuses on <strong>strengthening the cluster governance systems</strong> with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them.<br />
<ul style="list-style-type: circle;">
<li>It is done through building innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster- based traditional Industries.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Other Recent Initiatives to Promote MSME Sector</strong></p>
<ul style="list-style-type: square;">
<li><strong>Udyog Aadhaar Memorandum (UAM):</strong> It is a simple one-page registration form to promote ease of doing business for MSMEs in India.</li>
<li><strong>A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE):</strong> The scheme promotes innovation &amp; rural entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start up creation in the agro-based industry.</li>
<li><strong>Credit Guarantee Fund Scheme:</strong> To facilitate easy flow of credit, guarantee cover is provided for collateral free credit extended to MSMEs.</li>
<li><strong>Prime Minister&rsquo;s Employment Generation Programme (PMEGP):</strong> It is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country.</li>
<li><strong>Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation:</strong> CLCSS aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy for purchase of plant &amp; machinery.</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1700034" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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	(int) 11 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7752,
		'category_id' => (int) 21,
		'title' => 'Go Electric Campaign',
		'description' => '<h3>Why in News</h3>
<p>The central government has launched the <strong>&ldquo;Go Electric" Campaign</strong> to spread awareness on the benefits of <strong>e-mobility</strong> and<strong> EV Charging Infrastructure</strong> as well as<strong> electric cooking</strong> in India.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the Campaign:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Features:</strong> <br />
<ul style="list-style-type: disc;">
<li>To push the country towards <strong>100% e-mobility and clean and safe e-cooking.</strong></li>
<li>To <strong>create awareness at PAN-India level and reduce the import dependence</strong> of the country.</li>
<li>To move ahead on the<strong> path of a low carbon economy,</strong> thereby saving the country and the planet from the adverse impact of climate change.</li>
</ul>
</li>
<li><strong>Implementation:</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/bee-star-rating-programme" target="_blank" rel="noopener"><strong>Bureau of Energy Efficiency (BEE)</strong></a>, under the aegis of the <strong>Ministry of Power</strong> has been mandated to undertake an awareness drive for promoting public charging, e-mobility &amp; its ecosystem.</li>
</ul>
</li>
</ul>
</li>
<li><strong>E-mobility:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>E-mobility<strong> moves away from existing carbon-emitting fossil fuels to using energy from electrical power sources</strong> (e.g. the National Grid) through external charging capability.<br />
<ul style="list-style-type: disc;">
<li>Currently, <strong>India is using 94 million tonnes of oil and petroleum</strong> products for transportation only which is expected to double by 2030.</li>
<li>For fossil fuels, India currently has an<strong> import bill of Rs. 8 lakh Crore.</strong></li>
</ul>
</li>
<li>It encompasses the <strong>use of fully electric, conventional hybrid, plug-in hybrid as well as hydrogen-fuelled vehicles.</strong></li>
<li>The government of India has undertaken multiple initiatives to promote manufacturing and adoption of<strong><a href="/to-the-points/paper3/electric-vehicles-evs" target="_blank" rel="noopener"> electric vehicles</a> (EV)</strong> in India. One such initiative is <strong>&lsquo;Faster Adoption and Manufacturing of (Hybrid &amp;) Electric Vehicles in India (FAME-India)&rsquo; Scheme.</strong></li>
</ul>
</li>
<li><strong>Electric Fuel as an Alternative Fuel:</strong> <br />
<ul style="list-style-type: disc;">
<li>Electric fuel is a major alternative for fossil fuels.</li>
<li>When compared to conventional fuels, the electric fuel<strong> has low cost, reduced emissions and it is also indigenous.</strong></li>
<li>Electrification of public transport is not only economical but also eco friendly.</li>
<li>The usage of even 10,000 electric vehicles in Delhi can alone save Rs. 30 crore per month.</li>
</ul>
</li>
<li><strong>Green Hydrogen:</strong> <br />
<ul style="list-style-type: disc;">
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-budget-2021-for-green-energy" target="_blank" rel="noopener"><strong>Green hydrogen</strong></a> in the commercial vehicle could be a game-changer move which would help in eliminating the crude requirement and imports in all possible ways. <br />
<ul style="list-style-type: disc;">
<li>Green hydrogen is <strong>produced using renewable energy and electrolysis </strong>to split water. It is <strong>distinct from:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Grey hydrogen,</strong> which is produced from methane and releases greenhouse gases into the atmosphere.</li>
<li><strong>Blue hydrogen,</strong> which captures those emissions and stores them underground to prevent them causing climate change.</li>
</ul>
</li>
</ul>
</li>
<li>Also, for heavy vehicles like buses, the ideal solution is <a href="/loksabha-rajyasabha-discussions/the-big-picture-budget-2021-for-green-energy" target="_blank" rel="noopener"><strong>Green Hydrogen.</strong></a></li>
<li>The use of green energy generated from agriculture waste and <a href="/summary-of-important-reports/action-plan-for-biomass-management" target="_blank" rel="noopener"><strong>biomass</strong></a> will benefit the farmers across the country.</li>
<li>The Ministry of New &amp; Renewable Energy can produce the green hydrogen at cheap costs possible in India because of low solar prices.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Electric Cooking:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> shift to induction cooking</strong> will bring the government closer to delivering on its promise to improve energy access.</li>
<li>Theoretically, if electric cooktops are adopted, universal electrification could translate into<strong> universal clean cooking</strong> as well.</li>
<li>An advantage of the electricity-based solution is that it <strong>can make use of solar power in both urban and rural areas.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Bureau of Energy Efficiency</strong></p>
<ul style="list-style-type: square;">
<li>The Government of India set up the Bureau of Energy Efficiency (BEE) in March 2002 under the provisions of the<strong> Energy Conservation Act, 2001.</strong></li>
<li>It assists in developing policies and strategies with the primary objective of reducing energy intensity of the Indian economy.</li>
<li><strong>Major Programmes:<a href="/daily-updates/daily-news-analysis/state-energy-efficiency-index-2019" target="_blank" rel="noopener"> State Energy Efficiency Index</a>, <a href="/daily-updates/daily-news-analysis/report-on-energy-efficiency-measures" target="_blank" rel="noopener">Perform Achieve and Trade (PAT) scheme</a></strong>, The Standards &amp; Labeling Programme, Energy Conservation Building Code.</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1699386" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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	(int) 12 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7749,
		'category_id' => (int) 21,
		'title' => 'Conclusive Land Titling',
		'description' => '<h3>Why in News</h3>
<p>Recently, as many States have failed to send in their feedback on a <strong>Model Bill on Conclusive Land Titling</strong> , the Centre has warned that their agreement would be presumed. The Bill was <strong>prepared by the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener">NITI Aayog.</a></strong></p>
<p><a href="http://www.drishtiias.com/images/uploads/1613993020_image2.png" target="_blank" rel="noopener"><strong><img class="content-img" src="http://www.drishtiias.com/images/uploads/1613993020_image2.png" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="340" height="446" /></strong></a></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Land Titling:</strong><br />
<ul style="list-style-type: circle;">
<li>It is the generic term used to describe the <strong>programs implemented by the government</strong> to enable individuals and government <strong>to efficiently trade in rights in land and property.</strong><br />
<ul style="list-style-type: disc;">
<li>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/supreme-court-of-india" target="_blank" rel="noopener"><strong>Supreme Court</strong></a> held that a <a href="/daily-updates/daily-news-analysis/right-to-private-property" target="_blank" rel="noopener"><strong>citizen&rsquo;s right to own private property is a human right.</strong></a></li>
</ul>
</li>
</ul>
</li>
<li><strong>Current System in India/Presumptive Land Titling:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>India currently follows a system of presumptive land titling. It means that <strong>land records are maintained, with information on possession, which is determined through details of past transactions.</strong></li>
</ul>
</li>
<li><strong>Ownership:</strong><br />
<ul style="list-style-type: disc;">
<li>It is established on the <strong>basis of current possession.</strong></li>
</ul>
</li>
<li><strong>Registration:</strong><br />
<ul style="list-style-type: disc;">
<li>Registration of land is actually a registration of transactions, such as sale <strong>deeds, records of inheritance, mortgage and lease.</strong></li>
<li>Holding registration papers <strong>does not actually involve the government or the legal framework</strong> guaranteeing the ownership title of the land.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Conclusive Land Titling:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>Under a conclusive land titling system, <strong>land records designate actual ownership.</strong></li>
</ul>
</li>
<li><strong>Ownership:</strong><br />
<ul style="list-style-type: disc;">
<li>The title is <strong>granted by the government</strong>, which takes the responsibility for accuracy.</li>
</ul>
</li>
<li><strong>Dispute Settlement:</strong><br />
<ul style="list-style-type: disc;">
<li>Once a title is granted, any other <strong>claimant will have to settle disputes with the government</strong>, not the title holder.</li>
</ul>
</li>
<li><strong>Compensation:</strong> <br />
<ul style="list-style-type: square;">
<li>The <strong>government may provide compensation to claimants in case of disputes</strong>, but the title holder is not in any danger of losing ownership.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Need and Benefits of Conclusive Land Titling:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Reduce Litigations:</strong> <br />
<ul style="list-style-type: disc;">
<li>The conclusive system will <strong>drastically lower litigation related to land.</strong> <br />
<ul style="list-style-type: disc;">
<li>According to a 2007 <a href="/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group" target="_blank" rel="noopener"><strong>World Bank</strong></a> study on &lsquo;Land Policies for growth and poverty reduction&rsquo;, <strong>land-related disputes</strong> accounted for <strong>two-thirds of all pending court</strong> cases in India.</li>
<li>A <strong>NITI Aayog</strong> study on strengthening arbitration estimated that <strong>disputes on land or real estate take an average time of 20 years</strong> in the courts to be resolved.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reduced Risk:</strong><br />
<ul style="list-style-type: disc;">
<li>Once conclusive titling is in place, investors who want to purchase land for business activities will be able to do so <strong>without facing the constant risk that their ownership may be questioned</strong> and their entire investment may go to waste.<br />
<ul style="list-style-type: disc;">
<li>Right now, because land titles are based on transactions, people have to keep the entire chain of transaction records, and a dispute on any link in that chain <strong>causes ambiguity in ownership.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Reduction in Black Marketing:</strong><br />
<ul style="list-style-type: disc;">
<li>Ambiguity in ownership also results in a <strong>black market for land transactions</strong>, which deprives the government of <strong>taxes.</strong></li>
</ul>
</li>
<li><strong>Speeding up Development:</strong><br />
<ul style="list-style-type: disc;">
<li>Land disputes and unclear titling also create <strong>hurdles for infrastructure development and housing construction</strong>, leading to costly delays and inefficiency. In cities, urban local bodies depend on property taxes that can be levied properly only if there is clear ownership data available.</li>
<li>Long-running court cases currently create hurdles for investment in many sectors of the economy.</li>
</ul>
</li>
<li><strong>Facilitation of Easy Credit:</strong><br />
<ul style="list-style-type: disc;">
<li>In rural areas, the need is even more acute. Access to <strong>agricultural credit</strong> is <strong>dependent on the ability to use land as collateral.</strong></li>
<li>Without being able to prove their ownership of land and access formal credit from banks, <strong>small and marginal farmers are often left at the mercy of unscrupulous moneylenders</strong>, entrenching themselves in a mountain of debt.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Model Bill on Conclusive Land Titling:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Power to State Governments:</strong><br />
<ul style="list-style-type: disc;">
<li>It will provide state governments <strong>power to order for establishment, administration and management</strong> of a system of title registration of immovable properties.</li>
</ul>
</li>
<li><strong>Land Authorities:</strong><br />
<ul style="list-style-type: disc;">
<li>Land Authorities to be set up by each State government, which will appoint a <strong>Title Registration Officer (TRO)</strong> to prepare and publish a draft list of land titles based on existing records and documents.
<ul style="list-style-type: disc;">
<li>This will be considered a valid notice to all potential claimants interested in the property, who will have to file their claims or objections within a set period of time.</li>
</ul>
</li>
<li>If disputing claims are received, the TRO will verify all the relevant documents and refer the case to a <strong>Land Dispute Resolution Officer (LDRO)</strong> for resolution. <br />
<ul style="list-style-type: disc;">
<li>However, <strong>disputes</strong> which are already <strong>pending in courts cannot be resolved in this way.</strong></li>
</ul>
</li>
<li>Having considered and resolved all the disputed claims, <strong>the Land Authority will publish a Record of Titles.</strong></li>
</ul>
</li>
<li><strong>Land Titling Appellate Tribunals:</strong> <br />
<ul style="list-style-type: disc;">
<li>Over a three-year period, these titles and the <strong>decisions of the TRO and the LDRO can be challenged before Land Titling Appellate Tribunals</strong>, which will be set up under the law.</li>
<li>After a <strong>three-year period</strong>, entries in the Record of Titles will be considered conclusive proof of ownership.</li>
</ul>
</li>
<li><strong>Special Bench of High Court:</strong><br />
<ul style="list-style-type: disc;">
<li>A special bench of High court shall be designated <strong>to deal with appeals against the orders passed by the Land Titling Appellate Tribunal.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Challenge:</strong><br />
<ul style="list-style-type: circle;">
<li>The biggest challenge is that land <strong>records have not been updated</strong> for decades, especially in rural and semi-urban areas.</li>
<li>Land records are often in the name of the grandparents of the current owner, with <strong>no proof of inheritance.</strong></li>
<li>Unless they are based on updated records, <strong>conclusive land titles could create even more problems.</strong></li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>Comprehensive <strong>village-level surveys with community involvement</strong> are a necessary precursor to the land titling process. Relying on current records or even satellite imagery will not provide the same accuracy as actual, <strong>on-the-ground, local surveys.</strong></li>
<li>It is imperative that the country has <strong>an integrated system or repository of land record for urban and rural areas</strong> which comprehensively covers agricultural, infrastructure, residential and industrial land.</li>
</ul>
<p><a href="https://www.thehindu.com/news/national/the-hindu-explains-why-does-india-need-conclusive-land-titling/article33891718.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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	(int) 13 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7730,
		'category_id' => (int) 22,
		'title' => 'Health and Budget',
		'description' => '<div class="border">
<p>This article is based upon<a href="https://www.thehindubusinessline.com/opinion/towards-swasth-bharat/article33873108.ece" target="_blank" rel="noopener"><strong> &ldquo;Towards Swasth Bharat&rdquo;</strong></a> which was published in The Hindu Business Line on February 18, 2021. It talks about how increased budgetary allocation in the health sector is a much desired thing for the post-pandemic era and what are the associated issues.</p>
</div>
<p>Today, India is amidst this <a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener"><strong>global pandemic</strong></a>, a black swan event which has re-emphasised that our biggest resource is our people and hence, has brought to the forefront an urgent need for stronger health systems to ensure the well being of its people.</p>
<p>The <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-health-and-wellbeing" target="_blank" rel="noopener"><strong>Budget for FY 2021-22</strong></a> has come up with a holistic approach to health, incorporating &lsquo;preventive&rsquo;, &lsquo;curative&rsquo;, and &lsquo;well-being&rsquo; aspects with an increase of 137% as compared to the previous fiscal.</p>
<p>However, the numbers often seem high until evaluated carefully. The outlay on the health sector has been lowered to approximately 10% as compared to the estimates for the <a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong>FY 2020-21.</strong></a></p>
<h3>Current Situation of Health Sector</h3>
<ul style="list-style-type: square;">
<li>India&rsquo;s health infrastructure came under considerable strain in 2020, with 11 million Covid cases and perhaps over a million requiring hospitalisation.</li>
<li>India currently has <strong>one doctor over the population of 1,445</strong> against the WHO norm of 1:1000.</li>
<li>India spent 1.8% of its GDP on health in FY 2020-21 and 1-1.5% in the previous years.
<ul style="list-style-type: circle;">
<li>As compared with the OECD countries&rsquo; average of 7.6% and other BRICS countries&rsquo; average of 3.6% on their health sector, this is considerably low.</li>
<li>As a result, India is among the top nations with the highest <strong>Out Of Pocket Expenditure (OOPE).</strong>
<ul style="list-style-type: disc;">
<li>According to estimates, out of pocket expenses in healthcare in India hover close to 62%, nearly thrice the global average of 18%.</li>
</ul>
</li>
</ul>
</li>
<li>A report released by the Johns Hopkins Bloomberg School of Public Health in 2019 suggested that nearly <strong>one out of every 100 Indian children</strong> does not live to celebrate their fifth birthday on account of either diarrhoea or pneumonia.
<ul style="list-style-type: circle;">
<li><strong>Suboptimal access to clean water and sanitation</strong> is directly linked to diseases such as diarrhoea, polio and malaria.</li>
</ul>
</li>
</ul>
<h3>The Health Budget 2021</h3>
<ul style="list-style-type: square;">
<li>The Budget has committed to an outlay of ₹2,23,846 crore in health and well-being for 2021-22, a <strong>137%</strong> increase over previous year&rsquo;s Budget Estimate of ₹94,452 crores.
<ul style="list-style-type: circle;">
<li>This includes a ₹60,030 crore outlay on drinking water and sanitation, a ₹2,700 crore outlay on nutrition, nearly ₹49,000 crore as Finance Commission grants and ₹35,000 crore toward <a href="/daily-updates/daily-news-editorials/covid-19-vaccine-distribution" target="_blank" rel="noopener"><strong>vaccination</strong></a>.</li>
<li>Water and sanitation sector have received a 179% increase over the previous year&rsquo;s allocation from Rs 21,518 crore to Rs 60,030 crore.</li>
</ul>
</li>
<li>This is also in line with the <a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener"><strong>Economic Survey&rsquo;s</strong></a> recommendation of increasing public health spending to about 2.5-3% of GDP.</li>
<li>Another important public health-related announcement in Budget 2021 was the government&rsquo;s decision to expand the coverage of the pneumococcal vaccine across the country.</li>
<li>The launch of <strong>Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PMANSBY)</strong> was also announced under the budget.
<ul style="list-style-type: circle;">
<li>It laid emphasis on the expansion of health and wellness centres along with a ₹13,192 crore <strong>Finance Commission grant</strong> for strengthening the primary health system through local government bodies.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1613739640_image0.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1613739640_image0.png" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="660" height="933" /></a></p>
<h3>Associated Issues</h3>
<ul style="list-style-type: square;">
<li><strong>Reduced budgetary allocation:</strong> The Union Budget 2021-22 allocated Rs 71,268.77 crore to the Union Health and Family Welfare Ministry. However, the revised estimates for last year was Rs 78,866 crores.
<ul style="list-style-type: circle;">
<li>This implies the budgetary allocation to the Union health ministry came down by nearly 10%.</li>
</ul>
</li>
<li><strong>Allocation for vaccination:</strong> Apart from the health outlay, ₹35,000 crore was allocated for COVID-19 vaccination in FY 2021-22.
<ul style="list-style-type: circle;">
<li>Even assuming the cheapest prices of vaccines for all the citizens, India will be able to vaccinate only 65% of its total population with this amount.</li>
<li>Moreover, this Finance Commission grant for COVID-19 vaccination is a one-time allocation and, therefore, does not strengthen the overall system at all.</li>
</ul>
</li>
<li><strong>Combined health and water &amp; sanitation sector:</strong> There is an increased allocation for water &amp; sanitation but allocation for nutrition has decreased by 27%.
<ul style="list-style-type: circle;">
<li>Added together, health, water and sanitation and nutrition make up the claimed 137% increase in allocation to &ldquo;health&rdquo; services with a real decline in healthcare and nutrition.</li>
</ul>
</li>
<li><strong>The misses:</strong> The budget has clearly missed mentioning any reduction in <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>GST</strong></a> on <strong>active pharmaceutical ingredients (API).</strong>
<ul style="list-style-type: circle;">
<li>Reduction of import duty on medical devices that could have helped reduce the cost of healthcare services for citizens is another aspect missing in the budget.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>To bring down costs:</strong> Beyond a few islands of excellence such as the AIIMS, investments in other medical colleges shall be encouraged to possibly bring down costs and ramp up quality of health services.
<ul style="list-style-type: circle;">
<li>The government may focus on medical education, infrastructure and research in an expanded health Budget.</li>
</ul>
</li>
<li><strong>Public Private Partnerships:</strong> Emphasising on <strong><a href="/to-the-points/paper3/ppp-investment-model" target="_blank" rel="noopener">Public Private Partnerships</a> (PPP)</strong> in other clinical procedures and hospitals and leveraging private sector expertise in the vaccination drive for a quicker and successful achievement of the target.</li>
<li><strong>Incentivised R&amp;D and reduced GST:</strong> Incentivising R&amp;D by additional tax deductions to further support greater investments in new drug developments and reducing GST on life-saving and essential drugs.</li>
<li><strong>Skill enhancement of healthcare workers:</strong> To prepare the existing healthcare workforce to provide the people the proposed healthcare facilities, it is important to give significant attention to their training, re-skilling, and knowledge upgradation.
<ul style="list-style-type: circle;">
<li>To cater to this need, the government can take into account public-private collaborations.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>The health sector has found a prominent place in the government&rsquo;s agenda over the last few years, and it has increased even more amid the pandemic.</p>
<p>Although much remains to be done, the Union Budget 2021&ndash;22 has laid a strong foundation to increase the resilience of the sector in the post-COVID-19 era and achieving Universal Health Coverage by 2030 as part of the Sustainable Development Goals agenda.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #f8fff2;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>&ldquo;The Union Budget 2021-22 has emphasised on the importance of health by increasing the budgetary allocation by 137% as compared to the previous fiscal.&rdquo; Critically examine.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/Ld_BsM3v7ZE" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://economictimes.indiatimes.com/blogs/et-editorials/start-trials-for-mutant-strains/" target="_blank" rel="noopener"><strong>Start trials for mutant strains</strong></a> published in the EconomicTimes on 17 February, 2021. Now watch this on our youtube channel.</p>',
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	(int) 14 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7718,
		'category_id' => (int) 21,
		'title' => 'Draft Blue Economy Policy',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Ministry of Earth Sciences (MoES) has rolled out the<strong> draft <a href="/to-the-points/paper3/blue-economy" target="_blank" rel="noopener">Blue Economy</a> policy,</strong> inviting suggestions and inputs from various stakeholders.</p>
<ul style="list-style-type: square;">
<li>It is in line with the Government of<strong> India&rsquo;s Vision of New India by 2030.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>The policy document highlighted the blue economy as <strong>one of the ten core dimensions for national growth.</strong></li>
<li>It emphasizes policies across several key sectors to <strong>achieve holistic growth</strong> of India&rsquo;s economy. It recognizes the following seven thematic areas:<br />
<ul style="list-style-type: disc;">
<li>National accounting framework for the blue economy and ocean governance.</li>
<li>Coastal marine spatial planning and <a href="/daily-updates/daily-news-editorials/tourism-sector-in-india" target="_blank" rel="noopener"><strong>tourism</strong></a>.</li>
<li>Marine <a href="/daily-updates/daily-news-analysis/world-fisheries-day-1#:~:text=The%20fisheries%20and%20aquaculture%20production,as%20envisioned%20by%20the%20government." target="_blank" rel="noopener"><strong>fisheries</strong></a>, <a href="/loksabha-rajyasabha-discussions/in-depth-blue-revolution" target="_blank" rel="noopener"><strong>aquaculture</strong></a>, and fish processing.</li>
<li>Manufacturing, emerging industries, trade, technology, <a href="/to-the-points/paper3/sectors-of-indian-economy" target="_blank" rel="noopener"><strong>services</strong></a>, and <a href="/daily-updates/daily-news-editorials/the-problem-of-skilling-india" target="_blank" rel="noopener"><strong>skill development.</strong></a></li>
<li>Logistics, infrastructure and shipping, including trans-shipments.</li>
<li>Coastal and deep-sea mining and offshore energy.</li>
<li>Security, strategic dimensions, and international engagement.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Aims:</strong><br />
<ul style="list-style-type: circle;">
<li>Enhance contribution of the blue economy to India's <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener"><strong>Gross Domestic Product (GDP)</strong></a>.<br />
<ul style="list-style-type: disc;">
<li>The blue economy, which consists of economic activities dependent on marine resources, comprises<strong> 4.1% of India&rsquo;s economy.</strong></li>
</ul>
</li>
<li>Improve lives of coastal communities.</li>
<li>Preserve marine biodiversity.</li>
<li>Maintain the national security of marine areas and resources.</li>
</ul>
</li>
<li><strong>Reason and Need for a Blue Economy Policy:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Vast Coastline:</strong><br />
<ul style="list-style-type: disc;">
<li>With a coastline of nearly <strong>7.5 thousand kilometers,</strong> India has a unique maritime position.</li>
<li><strong>Nine of its 28 states are coastal,</strong> and the nation&rsquo;s geography includes 1,382 islands.</li>
<li>There are nearly <strong>199 ports,</strong> including <a href="/daily-updates/daily-news-analysis/major-port-authorities-bill-2020#:~:text=It%20also%20seeks%20to%20replace,and%20Kolkata%20(including%20Haldia)." target="_blank" rel="noopener"><strong>12 major ports</strong> </a>that handle approximately 1,400 million tons of cargo each year.<a href="http://www.drishtiias.com/images/uploads/1613635691_image4.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1613635691_image4.png" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></li>
</ul>
</li>
<li><strong>Utilisation of Non-living Resources:</strong><br />
<ul style="list-style-type: disc;">
<li>India&rsquo;s <a href="/daily-updates/daily-news-analysis/unclos-maritime-zones" target="_blank" rel="noopener"><strong>Exclusive Economic Zone</strong> </a>of over 2 million square kilometers has a huge living and non-living resources with significant recoverable resources such as<strong> crude oil and<a href="/loksabha-rajyasabha-discussions/the-big-picture-natural-gas-economy" target="_blank" rel="noopener"> natural gas</a>. </strong></li>
</ul>
</li>
<li><strong>Sustenance of Coastal Communities:</strong><br />
<ul style="list-style-type: disc;">
<li>The coastal economy sustains over 4 million <strong>fisherfolk and coastal communities. </strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Related Initiatives by India:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/india-norway-task-force-on-blue-economy" target="_blank" rel="noopener"><strong>India-Norway Task Force on Blue Economy for Sustainable Development</strong></a> :<br />
<ul style="list-style-type: disc;">
<li>It was inaugurated jointly by both the countries in 2020 to<strong> develop and follow up joint initiatives</strong> between the two countries.</li>
</ul>
</li>
<li><strong>Sagarmala Project:</strong><br />
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/sagarmala-seaplane-services" target="_blank" rel="noopener"><strong>Sagarmala project</strong></a> is the <strong>strategic initiative for port-led development</strong> through the extensive use of IT enabled services for modernization of ports.</li>
<li>It aims at developing Inland <a href="/daily-updates/daily-news-analysis/use-of-waterways-for-reducing-transportation-cost" target="_blank" rel="noopener"><strong>waterways</strong> </a>and coastal shipping which will revolutionize maritime logistics, creating million new jobs, reducing logistics costs etc.</li>
<li>It focuses on the <strong>development of coastal communities and people</strong> in the sustainable use of ocean resources, modern fishing techniques and coastal tourism.</li>
</ul>
</li>
<li><strong>O-SMART:</strong><br />
<ul style="list-style-type: disc;">
<li>India has an umbrella scheme by the name of <a href="/daily-updates/daily-news-analysis/cabinet-approves-o-smart-scheme" target="_blank" rel="noopener"><strong>O-SMART</strong></a> which aims at regulated use of oceans, marine resources for sustainable development.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/integrated-coastal-zone-management-plan" target="_blank" rel="noopener"><strong>Integrated Coastal Zone Management</strong></a>:<br />
<ul style="list-style-type: disc;">
<li>It focuses on conservation of coastal and marine resources, and improving livelihood opportunities for coastal communities etc.</li>
</ul>
</li>
<li><strong>National Fisheries Policy :</strong><br />
<ul style="list-style-type: disc;">
<li>India has a National Fisheries policy for promoting 'Blue Growth Initiative' which focus on sustainable utilization of fisheries wealth from the marine and other aquatic resources</li>
</ul>
</li>
</ul>
</li>
<li><strong>Global Steps:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/loksabha-rajyasabha-discussions/in-depth-indias-sustainable-development-goals" target="_blank" rel="noopener"><strong>Sustainable Development Goal (SDG)- 14</strong></a> seeks to conserve and sustainably use the oceans, seas and marine resources for sustainable development.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Blue Economy</strong></p>
<ul style="list-style-type: square;">
<li>The concept was introduced by <strong>Gunter Pauli in his 2010 book-</strong> &ldquo;The Blue Economy: 10 years, 100 innovations, 100 million jobs&rdquo;.</li>
<li>It is the <strong>sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.</strong></li>
<li>It<strong> advocates the greening of ocean development strategies</strong> for higher productivity and conservation of ocean's health.</li>
<li>It encompasses&ndash;<br />
<ul style="list-style-type: circle;">
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan" target="_blank" rel="noopener"><strong>Renewable Energy</strong></a>: Sustainable marine energy can play a vital role in social and economic development.</li>
<li><strong>Fisheries:</strong> Sustainable fisheries can generate more revenue, more fish and help restore fish stocks.</li>
<li><strong>Maritime Transport:</strong> Over 80% of international goods traded are transported by sea.</li>
<li><strong>Tourism:</strong> Ocean and coastal tourism can bring jobs and economic growth.</li>
<li><a href="/daily-updates/daily-news-editorials/climate-change-and-development-in-india" target="_blank" rel="noopener"><strong>Climate Change</strong></a>: Oceans are an important carbon sink (blue carbon) and help mitigate climate change.</li>
<li><a href="/daily-updates/daily-news-editorials/a-better-way-of-waste-management" target="_blank" rel="noopener"><strong>Waste Management</strong></a>: Better waste management on land can help oceans recover.</li>
</ul>
</li>
<li>Blue Economy emphasizes on<strong> integration of development of the ocean economy with social inclusion, environmental sustainability, combined with innovative business models.</strong></li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>With its vast maritime interests, the blue economy occupies <strong>a vital potential position in India&rsquo;s economic growth.</strong></li>
<li>It could well be the<strong> next multiplier of GDP and well-being,</strong> provided sustainability and socio-economic welfare are kept center-stage.</li>
<li>Therefore, India's draft blue economy policy is envisaged as a<strong> crucial framework towards unlocking the country's potential</strong> for economic growth and welfare.</li>
</ul>
<p><a href="https://pib.gov.in/PressReleseDetailm.aspx?PRID=1698608#:~:text=The%20Ministry%20of%20Earth%20Sciences,NGOs%2C%20academia%2C%20and%20citizens.&amp;text=Stakeholders%20have%20been%20invited%20to,ideas%20by%20February%2027%2C%202021." target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 7677,
		'category_id' => (int) 21,
		'title' => 'National Coal Index',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <strong>Ministry of Coal</strong> has started <strong>commercial auction of <a href="/to-the-points/paper3/coal-sector-in-india" target="_blank" rel="noopener">coal</a> mines </strong>on<strong> a revenue share basis </strong>using the<strong> National Coal Index (NCI).</strong></p>
<ul style="list-style-type: square;">
<li>NCI was <strong>rolled out in June 2020.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>It is a price index which <strong>reflects the change of price level of coal in a particular month relative to the fixed base year.</strong> <br />
<ul style="list-style-type: disc;">
<li>The base year for the NCI is <strong><a href="/to-the-points/paper3/government-budgeting" target="_blank" rel="noopener">Financial Year</a> 2017-18. </strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Compilation:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Prices of coal from all the sales channels of coal,</strong> including import, as existing today are taken into account for compiling the NCI.</li>
<li>The <strong>amount of revenue share</strong> per tonne of coal produced from auctioned blocks would be arrived at using the NCI by means of defined formula.</li>
</ul>
</li>
<li><strong>Sub-Indices:</strong> NCI is composed of a set of<strong> five</strong> sub-indices: <br />
<ul style="list-style-type: circle;">
<li>Three for <strong>Non Coking Coal</strong> and two for <strong>Coking Coal.</strong></li>
<li>The three sub-indices for Non Coking Coal are combined to arrive at the Index for Non Coking Coal and the two sub-indices for Coking Coal are combined to arrive at the Index for Coking Coal.</li>
<li>Thus,<strong> indices are separate for Non Coking and Coking Coal.</strong> <br />
<ul style="list-style-type: disc;">
<li>As per the grade of coal pertaining to a mine, the appropriate sub-index is used to arrive at the revenue share.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Coal</strong></p>
<ul style="list-style-type: square;">
<li>Coal is the most abundant fossil fuel which <strong>holds 55% of India's energy need.</strong></li>
<li>Based on the <strong>uses,</strong> coal is divided into <strong>two types:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Coking Coal:</strong><br />
<ul style="list-style-type: disc;">
<li>This type of coal when subjected to high temperature carbonisation i.e. heating in the absence of air to a temperature above 600 degree Celsius, <strong>forms a solid porous residue called coke.</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Coke</strong> is fed into a blast furnace along with iron ore and limestone to produce steel in steel plants.</li>
</ul>
</li>
<li>Coking coal is desired to be of<strong> low ash percentage.</strong></li>
<li><strong>Use:</strong> <br />
<ul style="list-style-type: disc;">
<li>Mainly used in steel making and metallurgical industries.</li>
<li>Also used for hard coke manufacturing.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Non Coking Coal:</strong><br />
<ul style="list-style-type: disc;">
<li>These are coals without coking properties.</li>
<li><strong>Use:</strong><br />
<ul style="list-style-type: disc;">
<li>This is the coal used in thermal power plants to generate electricity, so it is also known as <strong>steam coal or thermal coal.</strong></li>
<li>Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing, and for other heating purposes.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li>Coal is <strong>also classified into four ranks: anthracite, bituminous, subbituminous, and lignite.</strong> The ranking <strong>depends on the types and amounts of carbon the coal contains </strong>and<strong> on the amount of heat energy</strong> the coal can produce.</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1697033" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7665,
		'category_id' => (int) 21,
		'title' => 'Impact of Crude Oil Price Hike',
		'description' => '<h3>Why in News</h3>
<p>Recently, the<strong> price of Brent crude crossed the USD 60 per barrel mark after over a year.</strong> The rise in prices is<strong> because of production cuts</strong> by oil-producing countries and<strong> expectations of improvements in global demand</strong> as the <a href="/daily-updates/daily-news-editorials/covid-19-vaccine-distribution" target="_blank" rel="noopener"><strong>Covid-19 vaccine</strong></a> is rolled out across the world.</p>
<ul style="list-style-type: square;">
<li>In April 2020, the<a href="/daily-updates/daily-news-analysis/oil-prices-below-zero" target="_blank" rel="noopener"><strong> West Texas Intermediate (WTI) crude slipped below zero</strong></a> for the first time in history, to a negative USD 40.32 per barrel.</li>
<li><strong>Two crude oils</strong> which are either traded themselves or whose prices are reflected in other types of crude oil include <strong>West Texas Intermediate (WTI) and Brent.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Oil Pricing:</strong> <br />
<ul style="list-style-type: circle;">
<li>Generally, the <strong><a href="/daily-updates/daily-news-analysis/talks-on-oil-cut-deal-at-g-20" target="_blank" rel="noopener">Organization of the Petroleum Exporting Countries</a> (OPEC)</strong> used to<strong> work as a cartel</strong> and fix prices in a favourable band.<br />
<ul style="list-style-type: disc;">
<li><strong>OPEC is led by Saudi Arabia,</strong> which is the<strong> largest exporter of crude oil</strong> in the world (single-handedly exporting 10% of the global demand).</li>
<li>OPEC has a <strong>total of 13 Member Countries</strong> viz. Iran, Iraq, Kuwait, United Arab Emirates (UAE), Saudi Arabia, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of Congo, Angola, and Venezuela.</li>
</ul>
</li>
<li>OPEC <strong>could bring down prices by increasing oil production</strong> and raise prices by cutting production.</li>
<li>The global oil pricing mainly <strong>depends upon the partnership between the global oil exporters instead of a well-functioning competition.</strong></li>
<li>Cutting oil production or <strong>completely shutting down an oil well is a difficult decision,</strong> because restarting it is immensely costly and complicated.<br />
<ul style="list-style-type: disc;">
<li>Moreover, if a country cuts production, it risks losing market share if other countries do not follow the suit.</li>
</ul>
</li>
<li>Recently, OPEC has been working with Russia, as <a href="/daily-updates/daily-news-analysis/opec" target="_blank" rel="noopener"><strong>OPEC+</strong> </a>to fix the global prices and supply.<br />
<ul style="list-style-type: disc;">
<li>In 2016,<strong> OPEC allied with other top non-OPEC oil-exporting nations</strong> to form an even more powerful entity named OPEC+ or OPEC Plus.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons for Present Price Hike:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Limited Supply:</strong> <br />
<ul style="list-style-type: disc;">
<li>Major oil-producing countries <strong>had cut oil production last year</strong> amid a sharp fall in demand due to the Covid-19 pandemic. <br />
<ul style="list-style-type: disc;">
<li>Saudi Arabia pledged extra supply cuts in February and March 2020 following reductions by other members of the<strong> Organization of the Petroleum Exporting Countries (OPEC)</strong> and its allies.</li>
</ul>
</li>
<li>In early January 2021, the <strong>OPEC and Russia</strong> (as OPEC+) agreed to <strong>cut back on oil production to increase prices.</strong></li>
</ul>
</li>
<li><strong>Rising Demand:</strong><br />
<ul style="list-style-type: disc;">
<li>The<strong> production and rollout of vaccines</strong> for Covid-19 and the <strong>rising consumption post the Covid lockdowns</strong> last year have both led to a revival in international crude oil prices.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Impact on India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Current Account Deficit:</strong> The increase in oil prices will <strong>increase the country&rsquo;s import bill,</strong> and further <strong>disturb its current account deficit</strong> (excess of imports of goods and services over exports).<br />
<ul style="list-style-type: disc;">
<li>According to estimates, a one-dollar increase in crude oil price increases the oil bill by around USD 1.6 billion per year.</li>
<li><strong>India imports 80% of its crude oil requirements</strong> and the average price of Indian basket of crude oil has already risen to USD 54.8 barrel for January 2021.</li>
</ul>
</li>
<li><strong>Inflation:</strong> The increase in crude prices could also also further increase <a href="/daily-updates/daily-news-analysis/inflation-data-august-2020" target="_blank" rel="noopener"><strong>inflationary pressures</strong></a> that have been building up over the past few months.<br />
<ul style="list-style-type: disc;">
<li>This will <strong>decrease the space for the <a href="/daily-updates/daily-news-analysis/repo-rate-unchanged-1" target="_blank" rel="noopener">monetary policy committee</a> to ease policy rates</strong> further.</li>
<li>The government <strong>had hiked central taxes on petrol and diesel</strong> by Rs. 13 per litre and Rs. 11 per litre in 2020 to boost revenues amid lower economic activity.</li>
</ul>
</li>
<li><strong>Fiscal Health:</strong> If oil prices continue to increase, the government shall be forced to cut taxes on petroleum and diesel which may cause loss of revenue and deteriorate its <a href="/daily-updates/daily-news-analysis/increased-fiscal-deficit" target="_blank" rel="noopener"><strong>fiscal balance.</strong></a><br />
<ul style="list-style-type: disc;">
<li>The growth slowdown in the last two years has already resulted in a precarious fiscal situation because of tax revenue shortfalls.</li>
<li>The revenue lost will erode the government&rsquo;s ability to spend or meet its fiscal commitments in the form of budgetary transfers to states, payment of dues and compensation for revenue shortfalls to state governments under the <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>goods and services tax (GST)</strong></a> framework.</li>
</ul>
</li>
<li><strong>Positive Outcomes:</strong> However, there could be a positive side for India too from the oil price hike.<br />
<ul style="list-style-type: disc;">
<li>The value of Indian oil and gas companies could be positively impacted. The government could get greater value from <a href="/daily-updates/daily-news-analysis/government-s-disinvestment-plans" target="_blank" rel="noopener"><strong>disinvestment</strong></a> in Bharat Petroleum Corporation Limited.</li>
<li><strong>Remittances</strong> from the Persian Gulf could <strong>increase.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Difference between Brent and WTI</strong></p>
<ul style="list-style-type: square;">
<li><strong>Origin:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Brent</strong> crude oil <strong>originates from oil fields in the North Sea</strong> between the Shetland Islands and Norway.</li>
<li><strong>West Texas Intermediate (WTI)</strong> is sourced from<strong> US oil fields,</strong> primarily in Texas, Louisiana, and North Dakota.</li>
</ul>
</li>
<li><strong>Light and Sweet:</strong><br />
<ul style="list-style-type: circle;">
<li>Both oils are relatively light, but<strong> Brent has a slightly higher API gravity,</strong> making WTI the lighter of the two.<br />
<ul style="list-style-type: disc;">
<li><strong>American Petroleum Institute (API) gravity</strong> is an indicator of the density of crude oil or refined products.</li>
</ul>
</li>
<li><strong>WTI with a lower sulphur content</strong> (0.24%) than Brent (0.37%), is <strong>considered "sweeter".</strong></li>
</ul>
</li>
<li><strong>Benchmark Prices:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Brent crude price</strong> is the international benchmark price <strong>used by the OPEC</strong> while <strong>WTI crude price</strong> is a benchmark for<strong> US oil prices.</strong></li>
<li>Since India imports primarily from OPEC countries, <strong>Brent is the benchmark for oil prices in India.</strong></li>
</ul>
</li>
<li><strong>Cost of Shipping:</strong><br />
<ul style="list-style-type: circle;">
<li>Cost of shipping <strong>for Brent crude is typically lower,</strong> since it is produced near the sea and it can be put on ships immediately.</li>
<li><strong>Shipping of WTI is priced higher</strong> since it is produced in landlocked areas like Cushing, Oklahoma where the storage facilities are limited.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/explained/crude-oil-price-rise-explained-7181078/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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	(int) 17 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7650,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Budget 2021 for Green Energy',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/n739bdyShz0" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The<a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong> Union Budget for FY 2021-22</strong> </a>presented by the Union Minister of India, has exclusively focussed on <strong>Green Energy initiatives.</strong></li>
<li>Budget 2021 has proposed the launch of the <strong>Hydrogen Energy Mission</strong> in this fiscal year. <br />
<ul style="list-style-type: circle;">
<li>Additional capital infusion for solar energy and renewable energy aspects has also been proposed.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The reforms in the budget have particularly focussed on <strong>green-growth.</strong>
<ul style="list-style-type: circle;">
<li>The initiative is expected to enhance the uptake of cleaner fuels in India.</li>
</ul>
</li>
<li>Budget 2021-22 talks about <a href="/daily-updates/daily-news-analysis/expansion-of-production-linked-incentive-scheme" target="_blank" rel="noopener"><strong>PLI scheme</strong></a> in Solar Manufacturing, <strong>Vehicle Scrappage Policy</strong> and the <strong>Hydrogen Energy Mission.</strong>
<ul style="list-style-type: circle;">
<li>The PLI scheme has also been extended to the <strong>ACCs.</strong></li>
</ul>
</li>
<li>The emphasis on <strong>green <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles" target="_blank" rel="noopener">hydrogen</a></strong> in the budget was in line with technological development and with a long-term vision towards <strong>reduced dependency on minerals and rare-earth element</strong>-based batteries as energy storage.
<ul style="list-style-type: circle;">
<li>Hydrogen is the key clean fuel for the future.</li>
</ul>
</li>
<li>For the first time there is<strong> private financing of ₹18,000 crore for 20,000 buses</strong> and innovative financing with <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>Public Private Partnerships</strong> </a>which would revolutionise the way public transport systems and buses function in India.
<ul style="list-style-type: circle;">
<li>The initiative is to promote<strong> less dependency on personal vehicles</strong> and eventually <strong>bring down the carbon footprints.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Hydrogen Energy Mission</strong></p>
<ul style="list-style-type: square;">
<li>The National Hydrogen Energy Mission <strong>aims to reduce petroleum use, greenhouse gas emissions, and air pollution,</strong> and contribute to more diverse and <strong>efficient energy infrastructure.</strong></li>
<li>It is now proposed to launch a Hydrogen Energy Mission in 2021-22 for generating <strong>hydrogen from green power sources.</strong></li>
<li>Green Hydrogen Mission is not only<strong> essential to decarbonise heavy industries</strong> like steel and cement, it also <strong>holds the key to clean electric mobility</strong> that doesn&rsquo;t depend on rare minerals.</li>
</ul>
<p><strong>Vehicle Scrappage Policy</strong></p>
<ul style="list-style-type: square;">
<li>The policy will be launched to <strong>phase out old and unfit vehicles.</strong>
<ul style="list-style-type: circle;">
<li>Under the scheme <strong>private vehicles older than 20 years and commercial vehicles older than 15 years</strong> will be eligible to be scrapped.</li>
</ul>
</li>
<li>This will help in<strong> encouraging fuel efficient, environment friendly vehicles</strong> thereby reducing vehicular pollution and oil import bill.
<ul style="list-style-type: circle;">
<li>Vehicles would undergo<strong> fitness tests in automated fitness centres</strong> after their defined period is over.</li>
</ul>
</li>
</ul>
</div>
<h3>Green Energy and Government</h3>
<ul style="list-style-type: square;">
<li><strong>India in leading countries:</strong> India comes in the list of the leading countries in terms of the <a href="/daily-updates/daily-news-editorials/power-sector-in-india" target="_blank" rel="noopener"><strong>Power Sector</strong> </a>or the <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan#:~:text=The%20renewable%20energy%20capacity%20in,year%20as%20we%20move%20forward" target="_blank" rel="noopener"><strong>Renewable Energy</strong></a> sector.
<ul style="list-style-type: circle;">
<li>India ranks at the<strong> fifth position among the countries of the world</strong> when it comes to the size of its <strong>energy economy.</strong></li>
<li>India is the <strong>fourth largest solar installed capacity country</strong> in the world and<strong> third largest renewable energy installed capacity</strong> country in the world.</li>
</ul>
</li>
<li><strong>Solar energy:</strong> The <a href="/daily-updates/daily-news-analysis/india-may-miss-100-gw-solar-power-target-by-2022-crisil-report#:~:text=Jawaharlal%20Nehru%20National%20Solar%20Mission,of%2020%2C000%20MW%20by%202022.&amp;text=The%20target%20will%20principally%20comprise,Grid%20Connected%20Solar%20Power%20Projects" target="_blank" rel="noopener"><strong>Jawaharlal Nehru National Solar Mission (JNNSM)</strong> </a>aimed to achieve<strong> 20 GW</strong> solar capacity by the year <strong>2022.</strong>
<ul style="list-style-type: circle;">
<li>However, the target was increased from <strong>20 GW to 100 GW by 2022</strong> in the 2015 Union Budget of India.</li>
<li>India&rsquo;s total solar power capacity alone has increased by more than 11 times since 2014 to June 2020, from <strong>2.6 GigaWatts (GW) to 38 GW.</strong></li>
<li>To encourage domestic production, the duties on <strong>solar inverters</strong> have been increased from <strong>5% to 20%,</strong> and on<strong> solar lanterns</strong> from<strong> 5% to 15%.</strong></li>
</ul>
</li>
<li><strong>Renewable energy:</strong> The Government of India had set a target of <strong>175 GW</strong> renewable power installed capacity by the end of 2022.
<ul style="list-style-type: circle;">
<li>This includes <strong>60 GW from wind power, 100 GW from solar power, 10 GW from biomass power</strong> and<strong> 5 GW from small hydro power.</strong>
<ul style="list-style-type: disc;">
<li>The renewable energy capacity in India is <strong>currently 136 Giga Watts,</strong> which is about <strong>36%</strong> of its total energy capacity.</li>
</ul>
</li>
<li>The <strong>2030 renewable targets</strong> were announced to be<strong> 450 gigawatt.</strong></li>
</ul>
</li>
<li><strong>Green energy and infrastructure development:</strong> The budget primarily focuses on spending on infrastructure development and no infrastructure project can be completed without energy involved in it
<ul style="list-style-type: circle;">
<li>However, in the present context, the energy involved has to be<strong> clean energy.</strong></li>
<li>The solar energy at present is<strong> available at 2 rs/unit</strong> which is even cheaper than the energy generated from a new coal power plant.</li>
<li>The domestic manufacturing capacity has been enhanced by the PLI schemes for manufacturing solar panels.
<ul style="list-style-type: disc;">
<li>Through the 2021-22 budget, the PLI scheme has been extended to the 10 sectors including <strong>automobile, pharma,</strong> electronic/<strong>technology</strong> products and manufacturing of <strong>advanced chemical cells battery</strong> (for electric vehicles).</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Advanced Chemistry Cells (ACCs)</strong></p>
<ul style="list-style-type: square;">
<li>ACCs are the new generation advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.</li>
</ul>
</div>
<h3>Green Hydrogen</h3>
<ul style="list-style-type: square;">
<li>The Hydrogen Energy Mission is one of the biggest announcements in the union budget 2021-22, specifying the<strong> hydrogen as green hydrogen.</strong>
<ul style="list-style-type: circle;">
<li>When hydrogen is extracted from water using electrolysis powered by renewable energy, it is called green hydrogen.</li>
</ul>
</li>
<li>Green hydrogen energy is vital for India to meet its <a href="/current-affairs-news-analysis-editorials/news-editorials/11-07-2019" target="_blank" rel="noopener"><strong>Nationally Determined Contribution (INDC) Targets</strong> </a>and ensure regional and national energy security, access and availability.</li>
<li>Currently, about<strong> 6 tonnes of hydrogen is produced</strong> in the country which will go up by <strong>5 times in 2050.</strong></li>
</ul>
<p><strong>Why Green Hydrogen?</strong></p>
<ul style="list-style-type: square;">
<li>Hydrogen can act as an<strong> energy storage option,</strong> which would be essential to meet intermittencies (of renewable energy) in the future.</li>
<li>In terms of mobility, for long distance mobilisations for either urban freight movement within cities and states or for passengers, it is a very promising initiative.
<ul style="list-style-type: circle;">
<li>Hydrogen can be used in railways, large ships, buses or trucks where electric-vehicles have a limitation for not having enough capacity for long distance travels.</li>
</ul>
</li>
<li>Hydrogen has the potential to be the key renewable target in supporting infrastructure as well.</li>
<li>Hydrogen can be used:
<ul style="list-style-type: circle;">
<li>As a carrier</li>
<li>As a fuel cum energy storage alternative for petrol and diesel</li>
<li>Directly as a <strong><a href="/daily-updates/daily-news-analysis/clean-fuel-hydrogen" target="_blank" rel="noopener">fuel</a></strong></li>
</ul>
</li>
<li>Countries across the world such as <strong>Japan</strong> are banging on hydrogen as a future energy media.
<ul style="list-style-type: circle;">
<li><strong>Germany</strong> and many other <strong>EU countries</strong> have already set an<strong> ambitious green hydrogen policy.</strong></li>
<li>Even countries like<strong> UAE</strong> and <strong>Australia</strong> that are traditionally considered as the laggards of climate action have moved towards green hydrogen.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated</h3>
<ul style="list-style-type: square;">
<li>In terms of challenges the <strong>cost of renewable electricity from</strong> hydrogen specifically, is the major problem. Public investments need to strategize and channel well.
<ul style="list-style-type: circle;">
<li>Moreover, currently hydrogen is around <strong>$6- $8/kg</strong> which is a price too high to bring it into conventional use.</li>
</ul>
</li>
<li>The other main hurdle is <strong>transporting hydrogen</strong> to long distances.
<ul style="list-style-type: circle;">
<li>Hydrogen in gaseous form is highly inflammable.</li>
<li>To ship liquid hydrogen, it needs to be chilled to -253&deg;C.</li>
</ul>
</li>
<li>Compared to other gases (or fuels),<strong> hydrogen lacks smell,</strong> which makes any<strong> leak detection almost impossible</strong> thus increasing the potential dangers.</li>
<li>To succeed as a renewable energy based economy, it is <strong>not just the manufacturing sector</strong> where India would want to excel but the<strong> entire supply chain.</strong>
<ul style="list-style-type: circle;">
<li>Currently, India is at about <strong>2-3 gw of solar photovoltaic</strong> module manufacturing capacity.</li>
<li>For the given 450 gw renewable targets for 2030, India needs <strong>30-40 gw of capacity addition</strong> of renewables per year which requires having:
<ul style="list-style-type: disc;">
<li>Maximum domestic manufacturing capability</li>
<li>Increasing the custom duty on solar panels as it will incentivise domestic players in india to set up manufacturing of solar panels and making the entire supply chain robust.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Pilot initiatives:</strong> India needs a strategy in place to launch such a big mission, such as a <strong>few pilot initiatives.</strong>
<ul style="list-style-type: circle;">
<li>Hydrogen is one of the alternative sources of energy that India really needs to consider from its energy security perspective and transportation or mobilisation.</li>
</ul>
</li>
<li><strong>Efforts at all levels:</strong> The budget perspective presses that a lot more needs to be done <strong>not only at center but at state level too.</strong>
<ul style="list-style-type: circle;">
<li>More than 11 states in India now have rolled out their own electric mobility plans and are focussing not only at manufacturing or job but also in <strong>demand creation.</strong></li>
</ul>
</li>
<li><strong>Exploring &ldquo;All&rdquo;ternatives:</strong> Not sticking to just one alternate resource but exploring other sources too.
<ul style="list-style-type: circle;">
<li>For either intra or inter-city movements, different technologies can co-exist and can give different contributions.</li>
<li>1 kg of hydrogen can work about 100 km but roughly it would take 7-8 litres of petrol for the same distance.</li>
</ul>
</li>
<li><strong>Incentivising the concept of green and clean energy: Green labelling of products</strong> needs to be in place so that consumers are aware that what they are consuming is environment friendly.
<ul style="list-style-type: circle;">
<li>In order to push them into using green energy, they must be<strong> made aware of the benefits</strong> of the energy they are consuming. Also, there can be<strong> extensive marketing and awareness campaigns.</strong></li>
</ul>
</li>
<li><strong>Capacity building:</strong> It should not only be about awareness but also about building the capacity of the industries so that we have manufacturing in place and eventually more job opportunities.
<ul style="list-style-type: circle;">
<li>Planning a road map where we generate employment while setting up green energy infrastructure and reducing carbon emission.</li>
</ul>
</li>
<li><strong>Exclusive expenditure on R&amp;D:</strong> There should be a good spending on R&amp;D and technology adoption in hydrogen energy and e-Vehicles because that is one area where India had a setback in Solar Photovoltaics.
<ul style="list-style-type: circle;">
<li>More capital infusion in R&amp;D and infrastructure is needed to reap the benefits of various geographical locations in terms of solar energy and an emerging untapped option of hydrogen energy to replace conventional energy.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Moving towards Green Energy is indeed a win-win situation; it will lead to not only the usage of cleaner energy for a cleaner environment but also it will boost various sectors of manufacturing and employment.</li>
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		'article_id' => (int) 7635,
		'category_id' => (int) 21,
		'title' => 'RBI Monetary Policy 2021',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India (RBI)</strong> </a>has forecasted that real <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener"><strong>Gross Domestic Product (GDP)</strong></a>, hit by the <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid pandemic</strong></a> in 2020-21, is expected to grow by <strong>10.5% in 2021-22.</strong></p>
<ul style="list-style-type: square;">
<li>RBI had previously introduced a number of measures in its <a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi" target="_blank" rel="noopener"><strong>Monetary Policy Report</strong> </a>for dealing with the <strong>Covid-19 induced economic setback.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>GDP Forecast:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> 10.5% real GDP growth in 2021-22</strong> forecasted by RBI will move in the range of 26.2 to 8.3% in the first half and 6% in the third quarter of 2021. <br />
<ul style="list-style-type: disc;">
<li>Hit by <a href="/daily-updates/daily-news-editorials/covid-19-and-lockdown#:~:text=The%20Government%20of%20India%20has,every%20country%20across%20the%20globe." target="_blank" rel="noopener"><strong>lockdown</strong> </a>and closures of industries, GDP had contracted by<a href="/daily-updates/daily-news-analysis/gdp-contracted-by-23-9-in-first-quarter" target="_blank" rel="noopener"><strong> 23.9% in the June quarter of 2020-21</strong> </a>and<strong> fell by 7.5% in the September quarter of 2020-21.</strong></li>
<li><strong>Real GDP</strong> is a measurement of economic output that accounts for the effects of inflation or deflation.<br />
<ul style="list-style-type: disc;">
<li>The<strong> difference between nominal GDP and real GDP</strong> is the adjustment for inflation. Since nominal GDP is calculated using current prices, it does not require any adjustments for inflation.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons for a Positive Outlook:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Rural demand is likely to remain resilient</strong> on good prospects of agriculture.</li>
<li><strong>Urban demand</strong> and demand for contact-intensive services is<strong> expected to strengthen with the substantial fall in Covid-19 cases and the spread of vaccination.</strong></li>
<li>Consumer <strong>confidence is reviving,</strong> and business expectations of manufacturing, services and infrastructure remain upbeat.</li>
<li>The fiscal stimulus under <a href="/daily-updates/daily-news-analysis/measures-on-atmanirbhar-bharat-3-0" target="_blank" rel="noopener"><strong>AtmaNirbhar 2.0 and 3.0 schemes</strong></a> of the government will likely accelerate public investment.</li>
<li>The<a href="/daily-updates/daily-news-analysis/budget-2021-highlights-health-and-wellbeing" target="_blank" rel="noopener"><strong> Union Budget 2021-22</strong></a>, with its thrust on sectors such as health and well-being, infrastructure, innovation and research, etc. should help accelerate the growth momentum.</li>
</ul>
</li>
<li><strong>Unchanged Policy Rates:</strong><br />
<ul style="list-style-type: circle;">
<li>The RBI has kept the <a href="/daily-updates/daily-news-analysis/rbi-cuts-repo-rate" target="_blank" rel="noopener"><strong>repo rate</strong></a> under the <a href="/daily-updates/daily-news-analysis/liquidity-measures-extended-for-banks#:~:text=Liquidity%20Adjustment%20Facility%20(LAF)%20is,RBI%20through%20reverse%20repo%20agreements." target="_blank" rel="noopener"><strong>Liquidity Adjustment Facility (LAF)</strong></a> unchanged at 4%.</li>
<li>The <strong>reverse repo rate under the LAF remains unchanged at 3.35%</strong> and the <strong>Marginal Standing Facility (MSF)</strong> rate and the <strong>Bank Rate at 4.25%.</strong></li>
</ul>
</li>
<li><strong>Other Decisions: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Cash Reserve Ratio (CRR):</strong><br />
<ul style="list-style-type: disc;">
<li>The RBI has decided to restore the <a href="/daily-updates/daily-news-analysis/monetary-policy-report#:~:text=Cash%20Reserve%20Ratio%3A%20Banks%20are,is%20known%20as%20the%20CRR." target="_blank" rel="noopener"><strong>CRR</strong></a> in a non-disruptive manner from 3% to 4% in two stages by May 2021.</li>
</ul>
</li>
<li><strong>Direct Retail Investment in Government Securities (G-Sec):</strong><br />
<ul style="list-style-type: disc;">
<li>The RBI has proposed to<a href="/daily-updates/daily-news-analysis/direct-access-to-g-sec-market-for-retail-investors-rbi" target="_blank" rel="noopener"><strong> allow small investors direct access to the G-Sec platform.</strong></a><br />
<ul style="list-style-type: disc;">
<li>A <strong>G-Sec</strong> is a <strong>tradable instrument</strong> issued by the Central Government or the State Governments and is considered to be the <strong>safest form of investment.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Accommodative Stance:</strong><br />
<ul style="list-style-type: circle;">
<li>The <a href="/daily-updates/daily-news-analysis/gdp-revival-forecast-rbi#:~:text=Real%20gross%20domestic%20product%20(GDP,FY21%20will%20fall%20by%209.5%25.&amp;text=The%20real%20GDP%20growth%20in,the%20Q1%20of%202021%2D22." target="_blank" rel="noopener"><strong>Monetary Policy Committee (MPC)</strong> </a>of the RBI also decided to continue with the <a href="/daily-updates/daily-news-analysis/monetary-policy-rbi#:~:text=Accommodative%20Stance%3A,Covid%2D19%20on%20the%20economy." target="_blank" rel="noopener"><strong>accommodative stance</strong> </a>as long as necessary to revive growth on a durable basis and mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.</li>
<li>These decisions are in consonance with the objective of achieving the medium-term target for <a href="/daily-updates/daily-news-analysis/inflation-data-august-2020#:~:text=Consumer%20Price%20Index,-It%20measures%20price&amp;text=The%20CPI%20calculates%20the%20difference,and%20clothing%2C%20bedding%20and%20footwear." target="_blank" rel="noopener"><strong>Consumer Price Index (CPI)</strong></a> inflation of 4% within a band of +/- 2 %, while supporting growth.<br />
<ul style="list-style-type: disc;">
<li>The CPI<strong> calculates the difference in the price of commodities and services</strong> such as food, medical care, education, electronics etc, <strong>which Indian consumers buy for use.</strong></li>
<li>The <strong>CPI has several sub-groups</strong> including food and beverages, fuel and light, housing and clothing, bedding and footwear.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Monetary Policy Committee</strong></p>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>The Monetary Policy Committee is a <strong>statutory and institutionalized framework under the Reserve Bank of India Act, 1934,</strong> for maintaining price stability, while keeping in mind the objective of growth.</li>
</ul>
</li>
<li><strong>Formation:</strong><br />
<ul style="list-style-type: circle;">
<li>An RBI-appointed committee led by the then deputy governor <strong>Urjit Patel</strong> in 2014 recommended the establishment of the Monetary Policy Committee.</li>
</ul>
</li>
<li><strong>Chairman:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>Governor</strong> of RBI is <strong>ex-officio Chairman of the committee.</strong></li>
</ul>
</li>
<li><strong>Members:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>committee comprises six members</strong> (including the Chairman) -<strong> three officials of the RBI and three external members nominated by the Government of India.</strong></li>
</ul>
</li>
<li><strong>Decisions :</strong><br />
<ul style="list-style-type: circle;">
<li>Decisions are taken by majority with the Governor having the casting vote in case of a tie.</li>
</ul>
</li>
<li><strong>Function:</strong><br />
<ul style="list-style-type: circle;">
<li>The MPC determines the policy interest rate (repo rate) required to achieve the <a href="/daily-updates/daily-news-analysis/inflation-in-india" target="_blank" rel="noopener"><strong>inflation</strong></a> target (4%).</li>
</ul>
</li>
</ul>
<p><strong>Key Terms</strong></p>
<ul style="list-style-type: square;">
<li><strong>Repo and Reverse Repo Rate:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Repo rate</strong> is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Here, the <strong>central bank purchases the security.</strong></li>
<li><strong>Reverse repo rate</strong> is the rate at which the RBI borrows money from commercial banks within the country.</li>
</ul>
</li>
<li><strong>Liquidity Adjustment Facility (LAF):</strong><br />
<ul style="list-style-type: circle;">
<li>It is a tool used in monetary policy by the RBI, that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements.</li>
</ul>
</li>
<li><strong>Bank Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>It is the<strong> rate charged by the RBI for lending funds to commercial banks.</strong></li>
</ul>
</li>
<li><strong>Marginal Standing Facility (MSF):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>MSF</strong> is a window for scheduled banks to borrow overnight from the RBI in an emergency situation when interbank liquidity dries up completely.<br />
<ul style="list-style-type: disc;">
<li>Under interbank lending, banks lend funds to one another for a specified term.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Cash Reserve Ratio (CRR):</strong><br />
<ul style="list-style-type: circle;">
<li>Banks are required to hold a certain proportion of their deposits in the form of cash. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/banking-and-finance/rbi-cash-reserve-ratio-2021-7176606/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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		'article_id' => (int) 7630,
		'category_id' => (int) 21,
		'title' => 'Direct Access to G-Sec Market for Retail Investors: RBI ',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India</strong></a> has<strong> proposed to allow retail investors to open gilt accounts</strong> with the central bank to invest in <strong>Government securities (G-secs) directly</strong> and without the help of intermediaries.</p>
<ul style="list-style-type: square;">
<li><strong>Retail Investor</strong> is a non-professional investor who buys and sells securities or funds that contain a basket of securities such as mutual funds and <a href="/daily-updates/daily-news-analysis/bharat-bond-exchange-traded-fund" target="_blank" rel="noopener"><strong>Exchange Traded Funds (ETFs).</strong></a></li>
</ul>
<div class="border-bg">
<p><strong>Government Security</strong></p>
<ul style="list-style-type: square;">
<li>A G-Sec is a <strong>tradable instrument issued by the Central Government</strong> or the State Governments.</li>
<li>It <strong>acknowledges the Government&rsquo;s debt obligation.</strong> Such securities are <strong>short term</strong> (usually called<strong> treasury bills,</strong> with original maturities of less than one year- presently issued in three tenors, namely, 91 day, 182 day and 364 day) or<strong> long term</strong> (usually called <strong>Government bonds or dated securities</strong> with original maturity of one year or more).</li>
<li>In India, the <strong>Central Government issues both treasury bills and bonds or dated securities</strong> while the State Governments issue only bonds or dated securities, which are called the <strong>State Development Loans (SDLs).</strong></li>
<li>G-Secs<strong> carry practically no risk of default</strong> and, hence, are called risk-free gilt-edged instruments.<br />
<ul style="list-style-type: circle;">
<li><strong>Gilt-edged securities</strong> are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.</li>
</ul>
</li>
</ul>
</div>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li>The g-sec market is <strong>dominated by institutional investors</strong> such as banks, mutual funds, and insurance companies. These entities trade in <strong>lot sizes of Rs. 5 crore or more.</strong></li>
<li>So, there is <strong>no liquidity in the secondary market for small investors</strong> who would want to trade in smaller lot sizes.</li>
</ul>
</li>
<li><strong>About the Proposal:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Retail investors</strong> will <strong>get online access to the government securities market</strong> &ndash; both primary and secondary &ndash; directly through the Reserve Bank. <br />
<ul style="list-style-type: disc;">
<li>The<strong> primary market</strong> is where securities are created, while the<strong> secondary market</strong> is where those securities are traded by investors.</li>
</ul>
</li>
<li>Retail investors<strong> will be allowed to open gilt investment accounts</strong> directly with RBI. The account will be called <strong>RBI retail direct.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Gilt Account</strong> can be compared with a bank account, except that the account is debited or credited with treasury bills or government securities instead of money.</li>
</ul>
</li>
<li>The direct participation of retail investors in the bidding process will be enabled through the<strong> core banking solution of Reserve Bank of India- <a href="/daily-updates/daily-news-analysis/rbi-to-buy-g-secs" target="_blank" rel="noopener">E-kuber</a>. </strong></li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Broaden Investor Base:</strong> <br />
<ul style="list-style-type: disc;">
<li>Allowing direct retail investment in G-secs will broaden the investor base and provide retail investors with <strong>enhanced access to participate in the government securities market. </strong></li>
</ul>
</li>
<li><strong>Pioneer in Asia:</strong><br />
<ul style="list-style-type: disc;">
<li>This structural reform will place India in the <strong>select league of nations such as the USA and Brazil</strong> which have such facilities.</li>
<li><strong>India will possibly be the first in Asia</strong> to allow direct retail investment in G-secs to open up an additional investment avenue.</li>
</ul>
</li>
<li><strong>Facilitate Government Borrowings:</strong> <br />
<ul style="list-style-type: disc;">
<li>This measure together with relaxation in mandatory <strong>Hold To Maturity</strong> (securities that are purchased to be owned until maturity) provisions will <strong>facilitate smooth completion of the government borrowing</strong> programme in 2021-22.</li>
</ul>
</li>
<li><strong>Financialise Domestic Savings:</strong><br />
<ul style="list-style-type: disc;">
<li>Allowing direct retail participation in the G-Sec market will promote<strong> financialisation of a vast pool of domestic savings</strong> and could be a game-changer in India&rsquo;s investment market.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Measures Taken to Increase Retail Investment in Government Securities:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Introduction of non-competitive bidding</strong> in primary auctions.<br />
<ul style="list-style-type: disc;">
<li><strong>Non-competitive bidding</strong> means the <strong>bidder would be able to participate in the auctions</strong> of dated government securities without having to quote the yield or price in the bid.</li>
</ul>
</li>
<li><strong>Stock exchanges to act as aggregators</strong> and facilitators of retail bids.</li>
<li><strong>Allowing a specific retail segment</strong> in the secondary market.</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/rbi-to-allow-retail-investors-to-directly-enter-government-securities-market/article33759579.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 125
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 93

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