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General Studies – 1
Topic: Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues;
Reference: India’s Since Independence by Bipan Chandra.
Why the question:
The question is part of the static syllabus of General studies paper – 1.
Key Demand of the question:
To state the reasons as to why India started the production of nuclear weapons and to bring out the evolution of India’s nuclear policy.
Directive:
Trace – find or describe the origin and development of a policy/scheme.
Structure of the answer:
Introduction:
Begin by writing about the broad aims and objectives of India’s nuclear policy.
Body:
In the first part, write about the reasons as to why India chose to have a nuclear weapons stockpile. Credible minimum deterrent, The Sino-Indian war setback of 1962, security threats from Pakistan, domestic political pressures, international status and strategic autonomy etc.
In the next part write about the evolution of India’s nuclear policy. Under Nehru and Homi Bhabha, Under Shastri, Indira years, Pokhran-I, Pokhran-II and present day policy.
Conclusion:
Conclude by writing about despite India’s nuclear weapon arsenal and India’s commitment to ‘no first use doctrine’.
Introduction:
India built its first research reactor in 1956 and its first plutonium reprocessing plant by 1964. India’s nuclear programme can trace its origins to March 1944 and its three-stage efforts in technology were established by Homi Jehangir Bhabha when he founded the nuclear research centre, the Tata Institute of Fundamental Research. By 1964 India was in a position to develop nuclear weapons. India first tested a nuclear device in 1974 (code-named “Smiling Buddha”), under Prime Minister Indira Gandhi, which it called a “peaceful nuclear explosion.”
Body:
Reasons for India to go for nuclear weapons:
- There were a few reasons which served as a catalyst in India’s journey of becoming a nuclear armed nation.
- India occupies a strategic position in South-Asian region with China as its northern neighbour and Pakistan as its western neighbour.
- Since 1947, India shared a strained relationship with both its neighbours i.e. Pakistan and China.
- Both Pakistan and China had been involved in number of conventional wars with India.
- India’s loss to China in a brief Himalayan border war in October 1962, provided the New Delhi government impetus for developing nuclear weapons as a means of deterring potential Chinese aggression.
- The decades of the 80’s and 90’s meanwhile witnessed the gradual deterioration of our security environment as a result of nuclear and missile proliferation.
- Further, Pakistan has always indulged in use of sub-conventional warfare techniques like sponsoring insurgency, terrorism etc against India. Also china became a nuclear power in 1964 and it further threatened India.
- This strained neighbourhood relations including fear of nuclear attack from China ultimately threatened India’s sovereignty and integrity.
- In this backdrop India went ahead with its nuclear weapons test in order to strengthen its weapons mechanism.
- The countries we turned to for support and understanding felt unable to extend to us the assurances that we then sought.
India’s nuclear policy is influenced by following factors:
- Geopolitical Factors: India has strained relationships with both China and Pakistan. Pakistan has always taken advantage of India’s NFU and has threatening of nuclear escalations if India attacks them. India’s nuclear policy is of nuclear deterrence and to deal with repeated misadventures of Pakistan’s threat from China, India has been strengthening its deterrence policy by adopting following methods.
- Improving its 2nd Strike Capability: 2nd strike is vital for the success of deterrence as this will ensure massive retaliation if its first attack is launched. To make its deterrence policy holistic, India has completed its nuclear triad by use of SSBN and SLBMs.
- India has developed Intercontinental Ballistic Missile, Agni-V so that it can hit targets as far as eastern most regions of China. This also successfully promotes the idea that India can strike down important regions of Pakistan and China if they were to launch a nuclear attack on India.
- Early warning systems are essential to plan a successful retaliation and India’s PAD, AAD have accounted for this.
- Further Pakistan’s plan to use tactical nuclear weapon against India was rendered fruitless as India in its policy has stated that a nuclear attack on its soldiers anywhere will also be considered as 1st strike and would call for massive retaliation.
- NSG Membership: In 2008, India got a waiver from NSG even though it was not a part of NPT signatory due to some reasons.
- In 2008, India took a written pledge never to conduct a nuclear weapon test physically.
- USA backed India and pointed out that though India was a non-signatory yet it had followed NPT guidelines strictly. Further India had proved to be a responsible nuclear power by displaying absolute restraint in using nuclear power even after repeated provocations.
Evolution of India’s nuclear policy:
India’s first successful nuclear weapon test was in 1974. Due to this test conducted by India, the nuclear suppliers group (NSG) was formed in 1974 to prevent nuclear proliferation and to curb export of materials and technology that could be used to build nuclear weapons. In 1998, India further conducted a series of 5 nuclear tests and after its successful completion it declared itself a defacto nuclear weapon state.
Eventually, in the year 1999, India adopted a draft nuclear doctrine based on “NO FIRST USE” (NFU) policy. Certain key aspects of the draft were:
- India would not initiate nuclear attack on any country.
- India would not use nuclear weapons on non-nuclear states.
- India’s nuclear arsenal was for the sole purpose of defence and would serve as a deterrent against external nuclear attacks.
- India would adopt nuclear triad model. As per this model a nuclear weapon state should have capability of launching nuclear attacks on 3 fronts i.e. land, air, and water. In this model the Submarine Launched Ballistic Missiles (SLBM) would act as the ace in the hole if the other two were to fail
However, this draft did not receive official recognition.
In 2003, India officially accepted a Nuclear Doctrine based on NFU policy. Certain key features of this are:
- Nuclear weapons will only be kept as a credible minimum deterrent against nuclear attacks.
- NFU policy would be followed and India would use nuclear attack only as retaliation against a nuclear attack on India or on Indian forces anywhere.
- India would not launch nuclear weapon attack against any non-nuclear state. However, in the event of major attack on India or on Indian forces anywhere by chemical or biological weapon, India will have the option of retaliating with nuclear weapons.
- The retaliatory 2nd strike to a first nuclear attack would be massive and would inflict unacceptable damage on opponent
Presently India follows the 2003 Nuclear Doctrine. India’s policy is based on nuclear deterrence and 2nd strike ability plays a vital role in deterrent policy.
Conclusion:
At present, India’s nuclear policy is well equipped with all tools which are needed to meet India’s aim of using nuclear weapons as a deterrent. Though the present guidelines do not need a change but the same cannot be said for future. Nuclear policy is dynamic in nature and it needs thorough review and revision regularly in order to adapt to changing circumstances. However, in case of India even if changes may be needed in future the basic features of NFU and deterrent must not be messed with as changes to these 2 basic features will have significant consequences for south Asian strategic stability
Topic: Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues;
Reference: India’s Since Independence by Bipan Chandra.
Why the question:
The question is part of the static syllabus of General studies paper – 1.
Key Demand of the question:
To write about the various reasons for the genesis and naure of environmental movements in India.
Directive:
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
Introduction:
Begin by giving context regarding various environmental movements in India.
Body:
In detail, write about the causes for the environmental movements in India. Centering on dams, displacement and resettlement effectively articulated their agenda on the human consequences of tampering with the courses of natural resources.
Next, elaborate up on the nature of the movement with examples. Chipko Andolan, Save the Bhagirathi, Stop Tehri project, Narmada Bachhao Andolan in Madhya Pradesh and Gujrat; Youth organisation and Tribal people in the Gandhamardan Mines against Balco, the opposition of Baliapal Test Range, Bauxite mining in Kashipur and Niyamgiri, the Appiko movement in the Western Ghats; the campaign against the Silent Valley Project; reclaiming wastelands in Bankura district, and the opposition to the Gumti Dam in Tripura, etc.
Conclusion:
Conclude with the importance of the above movements.
Introduction:
Environmental movement refers to mass mobilization for environmental causes. Post-independence movement was mainly for improvement of quality of life not for changing power sharing arrangement as was there before independence. Similar was the case with environment movement.
Body:
Various environment movement of post-independence India and reasons for the same:
- Chipko Movement
- No forest exploitation contracts to be given to outsider.
- Local communities should have effective control over natural resources like land water and forest.
- Narmada Bachao Abhiyan
- A proper cost benefits analysis of the major developmental projects completed in the country so far.
- Social cost should be calculated too with respect to such projects. Social cost meant forced settlement of project affected people, serious loss of means of livelihood and culture, depletion of ecological resources
- Appiko movement
- Against the felling and commercialization of natural forest and the ruin of ancient livelihood.
- Jungle Bachao Andolan:
- The tribal community of Singhbhum district of Jharkhand (Previously, it was a district of India during the British Raj, part of the Chota Nagpur Division of the Bengal Presidency) agitated against the forest policy of the Government in 1982.
- The Government wanted to replace the natural soil, forests with the high-priced teak. Many environmentalists refer to this movement as “Greed Game Political Populism”.
- Tehri Dam Conflict
- This movement was started by the local people around 1980s and 1990s because the dam project would have constructed in the seismic sensitive region and people think that it causes submergence of forest areas along with Tehri town.
- Despite of protest, the construction of the dam is being carried out with police protection as Sunderlal Bahuguna is sitting on fast unto death.
- After assurance from the government to review the project, Bahuguna ended his fast but construction goes on, though at a slower pace.
- Silent valley movement:
- Against dam construction on Kuntipuzha river.
- The central issues of the Silent Valley protests included the protection of tropical rainforest, maintenance of the ecological balance and an opposition to destructive development.
- Saving the Western Ghats, 1988
- Home to sanctuaries like Bandipur and Nagarhole, Western Ghats, a biological treasure trove, was struck by an epidemic— deforestation in the 1980s.
- “The Union Government’s Forest Department estimates that within the last three decades, 4.5 million hectares of forests or an area the size of Tamil Nadu has vanished,” said India Today in March 1982.
- The Kailash Malhotra led Save the Western Ghats march, a 100-day padayatra across the hills, succeeded in imparting the message of environmental degradation and human rights.
All these movements started from local issues and mostly local people only took part in them. These movements can be seen as competition between environmentalism and industrialization
Conclusion:
Presently environment movement is gaining Global prominence. NGOs like Greenpeace and organizations like United Nations are taking steps to save environment at Global scale and mitigate climate change. Different nations are also making their effort to save the environment and develop sustainable example International solar Alliance by India and France.
General Studies – 2
Topic: Indian Constitution– historical underpinnings, evolution, features, amendments, significant provisions and basic structure.
Reference: Indian Express
Why the question:
The final report of XV FC for FY 2021-22 to FY 2025-26 is expected to be tabled along with the forthcoming Budget 2021-22. Thus the context of the question.
Key Demand of the question:
The question is straightforward and aims to note upon Finance commission and the recently released interim report.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Briefly explain the constitutional provisions of FC.
Body:
Start by explaining the working and purpose of the FC;
- The Finance Commission is a body set up under Article 280 of the Constitution, primarily to recommend measures and methods on how revenues, which the government earns through various taxes, need to be distributed between the Centre and the states.
- Discuss the related provisions of it in detail.
Bring out the highlights of final Report of 15th FC and how it could possibly change the face of the urban governance which is currently in tatters.
Conclusion:
Conclude by relevance of the to be released final report of the 15th Finance Commission.
Introduction:
The Fifteenth Finance Commission was constituted by a Presidential Order in November, 2017 under the Chairmanship of Shri N. K. Singh to decide the formula for devolution of revenue between Centre and States, for a period of 5 years – April, 2020 to March, 2025. The XV FC, however, was given an extension of a year due to uncertainties in key macro areas (new monetary policy framework, GST, bankruptcy code, demonetization, etc.).
Body:
Finance Commission:
- The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
- Two distinctive features of the Commission’s work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the centre and the States respectively and equalization of all public services across the States.
Constitutional Provisions of Finance Commission India:
A defined frame of constitutional provisions of finance commission India was drafted during the early 1920s. This was drafted with the main motto of maximum exploitation of business opportunity for the British ruler. Further, the British ruler also employed the policy of favoritism towards local Indian rulers to create a wedge of communal difference amongst the dominant religions of India.
Constitutional provisions of finance commission India:
- The President of India shall, within maximum of two years from the commencement of the draft and thereafter completion of every fifth year or at earlier time (as he deems necessary), by order should constitute a Finance Commission
- The Finance Commission shall consist of a chairman and four other members, appointed by the President himself
- The elected parliament may by formulating appropriate law determine the qualifications of such members of the Finance Commission and it may also determine the manner in which the members shall be selected.
Major recommendations of XV FC to strengthen Municipalities:
The XV FC Commission has significantly raised the bar on financial governance of India’s municipalities in the interim report in at least four specific ways.
- Rise in overall outlay:
- It has set aside Rs 29,000 crore for FY 2020-21 and indicated the intent to raise the share of municipalities in the total grants’ of local bodies (including panchayats) gradually over the medium term, from the existing 30 per cent to 40 per cent.
- This could result in the outlay over five years being in the range of Rs 1,50,000-Rs 2,00,000 crore compared to Rs 87,000 crore during the XIV FC period.
- Two very important entry conditions have been set for any municipality in India to receive FC grants: Publication of audited annual accounts and notification of floor rates for property tax.
- These two entry conditions lay strong foundations for financial accountability of municipalities and own revenue enhancement respectively.
- There are other reforms, too, that are underway on these fronts. The Aatmanirbhar Bharat Abhiyan links Rs 50,000 crore of additional borrowing limits for states to reforms in property taxes and user charges for water and sanitation.
- There is also a thrust on municipal bonds and municipal finance reform conditions under AMRUT.
- The last year-and-a-half, therefore, may have witnessed the strongest push in recent times for transformed financial governance in our municipalities.
- Nuanced approach of distinguishing between million-plus urban agglomerations, and other cities:
- The XV FC has now provided for 100 per cent outcome-based funding of approximately Rs 9,000 crore to 50 million-plus urban agglomerations (excluding Union Territories) with specific emphasis on air quality, water supply and sanitation and basic grants to the rest of the cities, with 50 per cent of the end-use tied to water supply and sanitation.
- A unified theatre of action to solve complex challenges:
- For the first time, there is also an acknowledgement of the metropolitan area as a unified theatre of action to solve complex challenges of air quality, water and sanitation, with implicit emphasis on inter-agency coordination.
- A common digital platform:
- A common digital platform for municipal accounts, a consolidated view of municipal finances and sectoral outlays at the state level, and digital footprint of individual transactions at source, the FC has delightfully broken new ground and demonstrated farsightedness.
Conclusion:
The foundation for some of these were laid by previous finance commissions, particularly the thirteenth and fourteenth. However, the ultimate responsibility for municipal finance reforms remains with state governments. Constitutional bodies such as the finance commission cannot be seen as principal actors in driving transformational change in our cities. They can, at best, prepare the ground and provide incentives and disincentives.
We need our municipal legislation to reflect progressive and enabling financial governance of our cities through five reform agendas of fiscal decentralisation (including strengthening state finance commissions), revenue optimisation (to enhance own revenues), fiscal responsibility and budget management (to accelerate municipal borrowings), institutional capacities (towards an adequately skilled workforce) and transparency and citizen participation (for democratic accountability at the neighbourhood level).
Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Reference: The Hindu
Why the question:
The question is straightforward and talks about the Public healthcare system in India. In the wake of the COVID-19 pandemic, there have been vociferous demands to strengthen the country’s public health system. The article talks about the necessary reforms required in the health system that have been exposed by the Covid crisis.
Key Demand of the question:
Explain the radical overhauling that is required in the health care system of the country to ensure it becomes more sustainable and responsive.
Directive:
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Discuss the current situation that has exposed the lacunae in the Indian health care system.
Body:
One must remember that the question is not pertaining only to the pressures posed by the corona crisis on the healthcare system, and its about the loopholes in the system that have been prevalent over decades.
Give suitable examples and supporting evidence from the article that has repeatedly hinted at the lack of physical infrastructure, social infrastructure, doctors etc.
List and discuss all the other lacunae in detail.
Discuss suggestions to address these problems such as role of private sector, NGOs etc. role of the government.
Conclusion:
Conclude with way forward to build a robust public healthcare system.
Introduction:
The COVID-19 pandemic has showed the fragility of country’s public health system. There have been vociferous demands to strengthen the same. But with the waning of the Covid-19 pandemic, the Government has now reduced its spending and is back to the past condition. The efficacy of the public health system varies widely across the country since it is a State subject. Having failed to achieve the Millennium Development Goals, India is staring at the same w.r.t Goal 3 (good health and well-being) of the Sustainable Development Goals (SDGs).
Body:
The other major challenges faced by healthcare system in India are:
- Finance: At about 1.3% of the national income, India’s public healthcare spending between 2008 and 2015, has virtually remained stagnant. This is way less than the global average of 6 per cent. It is a herculean task to implement a scheme that could potentially cost Rs 5 lakh per person and benefit 53.7 crore out of India’s 121 crore citizenry, or roughly about 44% of the country’s population. Over 70 per cent of the total healthcare expenditure is accounted for by the private sector.
- Crumbling public health infrastructure: Given the country’s crumbling public healthcare infrastructure, most patients are forced to go to private clinics and hospitals. There is a shortage of PHCs (22%) and sub-health centres (20%), while only 7% sub-health centres and 12% primary health centres meet Indian Public Health Standards (IPHS) norms.
- Approximately 70 per cent of the healthcare services in India are provided by private players. If private healthcare crumbles due to economic constraints or other factors, India’s entire healthcare system can crumble.
- High Out of Pocket Expenditure: Reports suggest that 70% of the medical spending is from the patient’s pockets leading to huge burden and pushing many into poverty. Most consumers complain of rising costs. Hundred days into the PMJAY, it remains to be seen if private hospitals provide knee replacement at Rs 80,000 (current charges Rs 3.5 lakh) bypass surgery at Rs 1.7 lakh (against Rs 4 lakh).
- Insurance: India has one of the lowest per capita healthcare expenditures in the world. Government contribution to insurance stands at roughly 32 percent, as opposed to 83.5 percent in the UK. The high out-of-pocket expenses in India stem from the fact that 76 percent of Indians do not have health insurance.
- Doctor-Density Ratio: India has a doctor-to-population ratio well below the level recommended by the WHO — 1:1,445, which adds up to a total of roughly 1,159,000 doctors. The WHO says the ideal ratio is 1:1,000.
- Shortage of Medical Personnel: Data by IndiaSpend show that there is a staggering shortage of medical and paramedical staff at all levels of care: 10,907 auxiliary nurse midwives and 3,673 doctors are needed at sub-health and primary health centres, while for community health centres the figure is 18,422 specialists.
- Rural-urban disparity: The rural healthcare infrastructure is three-tiered and includes a sub-center, primary health centre (PHC) and CHC. PHCs are short of more than 3,000 doctors, with the shortage up by 200 per cent over the last 10 years to 27,421. Private hospitals don’t have adequate presence in Tier-2 and Tier-3 cities and there is a trend towards super specialisation in Tier-1 cities.
- Regional variation: The northern States are performing very poorly in these vital health parameters. In Madhya Pradesh, the number of infant deaths for every 1,000 live births is as high as 48 compared to seven in Kerala. In U.P. the Maternal Mortality Ratio is 197 compared to Kerala’s 42 and Tamil Nadu’s 63. The percentage of deliveries by untrained personnel is very high in Bihar, 190 times that of Kerala.
- Social Inequality: The growth of health facilities has been highly imbalanced in India. Rural, hilly and remote areas of the country are under served while in urban areas and cities, health facility is well developed. The SC/ST and the poor people are far away from modern health service.
- Poor healthcare ranking: India ranks as low as 145th among 195 countries in healthcare quality and accessibility, behind even Bangladesh and Sri Lanka.
- Commercial motive: lack of transparency and unethical practices in the private sector.
- Lack of level playing field between the public and private hospitals: This has been a major concern as public hospitals would continue receiving budgetary support. This would dissuade the private players from actively participating in the scheme.
- Scheme flaws: The overall situation with the National Health Mission, India’s flagship programme in primary health care, continues to be dismal. The NHM’s share in the health budget fell from 73% in 2006 to 50% in 2019 in the absence of uniform and substantial increases in health spending by States.
Steps taken up currently:
- The National Health Policy (NHP) 2017 advocated allocating resources of up to two-thirds or more to primary care as it enunciated the goal of achieving “the highest possible level of good health and well-being, through a preventive and promotive healthcare orientation”.
- A 167% increase in allocation this year for the Pradhan Mantri Jan Arogya Yojana (PMJAY) — the insurance programme which aims to cover 10 crore poor families for hospitalisation expenses of up to ₹5 lakh per family per annum.
- The government’s recent steps to incentivise the private sector to open hospitals in Tier II and Tier III cities.
- Individual states are adopting technology to support health-insurance schemes. For instance, Remedinet Technology (India’s first completely electronic cashless health insurance claims processing network) has been signed on as the technology partner for the Karnataka Government’s recently announced cashless health insurance schemes.
Measures needed to strengthen the existing state of Health infrastructure in the country are:
- There is an immediate need to increase the public spending to 2.5% of GDP, despite that being lower than global average of 5.4%.
- The achievement of a distress-free and comprehensive wellness system for all hinges on the performance of health and wellness centers as they will be instrumental in reducing the greater burden of out-of-pocket expenditure on health.
- there is a need to depart from the current trend of erratic and insufficient increases in health spending and make substantial and sustained investments in public health over the next decade.
- A National Health Regulatory and Development Framework needs to be made for improving the quality (for example registration of health practitioners), performance, equity, efficacy and accountability of healthcare delivery across the country.
- Increase the Public-Private Partnerships to increase the last-mile reach of healthcare.
- Generic drugs and Jan Aushadi Kendras should be increased to make medicines affordable and reduce the major component of Out of Pocket Expenditure.
- The government’s National Innovation Council, which is mandated to provide a platform for collaboration amongst healthcare domain experts, stakeholders and key participants, should encourage a culture of innovation in India and help develop policy on innovations that will focus on an Indian model for inclusive growth.
- India should take cue from other developing countries like Thailand to work towards providing Universal Health Coverage. UHC includes three components: Population coverage, disease coverage and cost coverage.
- Leveraging the benefits of Information Technology like computer and mobile-phone based e-health and m-health initiatives to improve quality of healthcare service delivery. Start-ups are investing in healthcare sector from process automation to diagnostics to low-cost innovations. Policy and regulatory support should be provided to make healthcare accessible and affordable.
Conclusion:
India needs a holistic approach to tackle problems in healthcare industry. This includes the active collaboration of all stakeholders viz. public, private sectors, and individuals. Amore dynamic and pro-active approach is needed to handle the dual disease burden. A universal access to health makes the nation fit and healthy, aiding better to achieve the demographic dividend.
General Studies – 3
Reference: pib.gov.in , bloombergquint.com
Why the question:
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2020-21 in the Parliament on the first day of the Budget session. The survey, authored by Chief Economic Adviser Krishnamurthy Subramanian, has analysed various topics from economic growth, fiscal stance, state of banking and more. Thus, the question.
Key Demand of the question:
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Briefly explain the importance of Economic Survey and the theme of ES 2020-21.
Body:
Provide the highlights of the Economic Survey 2020-21.
Discuss the major impediments that Indian Economy is currently facing.
Suggest measures to overcome the same.
Conclusion:
Conclude with a way forward.
Introduction
The economic survey elucidate how India has resolutely battled the unprecedented crisis and charted its own unique trajectory showing remarkable resilience in Saving lives and livelihoods. India’s mature and calibrated policy response is outlined in the survey, and a policy path that will accelerate the momentum of our economy.
Body
Highlights of Economic Survey 2021
India adopted a four-pillar strategy of containment, fiscal, financial, and long-term structural reforms.
- State of Economy and measures: Calibrated fiscal and monetary support was provided, cushioning the India’s real GDP to record a 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4% – the highest since independence:
- Rebound to be led by low base and continued normalization in economic activities as the rollout of COVID-19 vaccines gathers traction.
- A favourable monetary policy ensured abundant liquidity and immediate relief to debtors while unclogging monetary policy transmission.
- V-shaped recovery is underway, as demonstrated by a sustained resurgence in high frequency indicators such as power demand, e-way bills, GST collection, steel consumption, etc.
- India became the fastest country to roll-out 10 lakh vaccines in 6 days and also emerged as a leading supplier of the vaccine to neighbouring countries and Brazil
- Debt Sustainability
- Debt sustainability depends on the ‘Interest Rate Growth Rate Differential’ (IRGD),e., the difference between the interest rate and the growth rate.
- In India, interest rate on debt is less than growth rate – by norm, not by exception.
- Negative IRGD in India – not due to lower interest rates but much higher growth rates – prompts a debate on fiscal policy, especially during growth slowdowns and economic crises.
- Credit Rating
- The fifth largest economy in the world has never been rated as the lowest rung of the investment grade (BBB-/Baa3) in sovereign credit ratings: Reflecting the economic size and thereby the ability to repay debt, the fifth largest economy has been predominantly rated AAA.
- China and India are the only exceptions to this rule – China was rated A-/A2 in 2005 and now India is rated BBB-/Baa3.
- India’s sovereign credit ratings do not reflect its fundamentals. India’s willingness to pay is unquestionably demonstrated through its zero sovereign default history
- Inequality and growth
- Economic growth has a greater impact on poverty alleviation than inequality.
- India must continue to focus on economic growth to lift the poor out of poverty
- Healthcare
- An increase in public healthcare spending from 1% to 2.5-3% of GDP can decrease the out-of-pocket expenditure from 65% to 35% of overall healthcare spending
- India’s health infrastructure must be agile so as to respond to pandemics – healthcare policy must not become beholden to ‘saliency bias’.
- Innovation and India
- India entered the top-50 innovating countries for the first time in 2020 since the inception of the Global Innovation Index in 2007, ranking first in Central and South Asia, and third amongst lower middle-income group economies.
- India’s gross domestic expenditure on R&D (GERD) is lowest amongst top ten economies.
- India’s aspiration must be to compete on innovation with the top ten economies.
- Regulatory Forbearance
- Forbearance represents emergency medicine that should be discontinued at the first opportunity when the economy exhibits recovery, not a staple diet that gets continued for years
Challenges to Indian Economy
- The coronavirus ravaged the Indian economy from a bright spot of the world to become one of the hardest-hit economies.
- To revive the economy, the Indian government has to find ways to improve the balance sheet of public sector banks.
- A stress test of the Reserve Bank of India (RBI) on banks indicates that the gross non-performing asset ratio of all banks may increase from 8.5% in March 2020 to 12.5% in March 2021 due to the pandemic.
- Policymakers are also debating the size of the fiscal deficit, elevated inflation, lower employment, weak investment growth, etc.
- Meanwhile, India’s manufacturing value added as a share of GDP was only 13.6% in 2019. The situation worsened with the pandemic.
- Also, inflation had outstripped nominal wage growth, reducing the purchasing power of rural households.
Measure to improve economy
- India was the only country to announce structural reforms in the form of Aatmanirbhar Bharat to expand supply in the medium-long term and avoid long-term damage to productive capacities.
- Calibrated demand side policies to ensure that the accelerator is slowly pushed down only when the brakes on economic activities are being removed.
- A public investment programme centred around the National Infrastructure Pipeline to accelerate the demand push and further the recovery.
- Governments and central banks across the globe deployed various policy tools to support their economies such as lowering policy rates, quantitative easing measures, etc.
Way Forward
- A well-designed fiscal stimulus package, prioritizing health spending to contain the spread of the virus and providing income support to households most affected by the pandemic would help to minimize the likelihood of a deep economic recession.
- The Central bank has taken some steps to ease the dollar credit crunch via long-term repo operations (LTRO) and offered a $2-billion swap for six months to ease the pressure on the rupee.
- The public and private sector in India should plan for the best and prepare for the worst scenarios, keeping in mind that a V-shaped recovery is not guaranteed.
General Studies – 4
Topic: dimensions of ethics
6. Vaccine should be given based on priority and not privilege. Examine ethically. (150 words)
Why the question:
The question is part of the static syllabus of General studies paper – 4.
Key Demand of the question:
To write about ethical considerations in administering vaccine to the masses.
Directive:
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin by citing the ethical dilemmas we face as the vaccine roll out begins.
Body:
In detail bring out the ethical dilemmas in the vaccination programme. Rationality, Disparities between rich and poor, lack of empathy towards poor, crony capitalism, gratitude towards front line workers, ethics in international relations etc.
Conclusion:
Conclude with a balanced judgement towards vaccine policy.
Introduction
The COVID-19 pandemic will likely recede only through development and distribution of an effective vaccine. Although there are many unknowns surrounding COVID-19 vaccine development, vaccine demand will likely outstrip early supply, making prospective planning for vaccine allocation critical for ensuring the ethical distribution of COVID-19 vaccines.
Body
Goals of Vaccine distribution
Three central goals for COVID-19 vaccination campaigns
- To reduce morbidity and mortality
- To minimise additional economic and societal burdens related to the pandemic
- To narrow unjust health inequalities
Ethical issues in vaccine distribution and access
- Rich versus Poor in a capitalist world, while poor are most vulnerable
- Reinforcing the unequal world, as Least Developed Nations suffer most
- Socio-economic injustice and inequality leading to low access to healthcare
- Crony Capitalism making universal vaccine access elusive.
- Allocation of scarce resources in a justifiable manner.
Priorities to consider during Vaccination drive
- Prioritise those most vulnerable to morbidity and mortality from COVID-19.
- Protect the sanitation and front-line healthcare workers who dedicated their lives in the service of larger community, putting their own lives at risk.
- It also includes fire department workers, emergency medical services, police and so on) and workers who provide services that are necessary for society to function as normally as possible (i.e., food industry employees, essential airport personnel and so on).
- Prioritising these populations is consistent with the principle of reciprocity, recognising the additional risks assumed by essential workers to maintain critical services for society during the pandemic.
- Ensure the greatest number of individuals have the opportunity to pass through all stages of life (childhood through old age). This approach would entail vaccinating those younger than 65 years of age to ensure these individuals do not have a life-cycle cut short by COVID-19.
Conclusion
Proactive planning for the ethical distribution of vaccines against COVID-19 is critical to ensuring that any resulting allocation approach advances the intended public health goals for COVID-19 vaccination. A multipronged approach that considers risk of serious COVID-19 illness, instrumental value and risk of transmission should be implemented, guided by ongoing empirical work regarding, among other factors.
Topic: Aptitude and foundational values for Civil Service, integrity, impartiality and nonpartisanship, objectivity, dedication to public service, empathy, tolerance and compassion towards the weaker-sections
7. What do you understand by the quote?
“Fortitude is the guard and support of the other virtues”. -John Locke
(150 words)
Introduction:
Start by explaining the quote.
Body:
Explain how Fortitude is firmness of spirit, especially in difficulty. It provides for constancy in the pursuit of virtue. Fortitude is a willingness to freely go beyond the call of duty, to make sacrifices, to act on your convictions. Fortitude includes the courage to confront our personal weaknesses and attraction to vice.
Conclude:
Underscore the importance as to how fortitude serve as a life support for other virtues.
Introduction
Fortitude is firmness of spirit, especially in difficulty. It provides for constancy in the pursuit of virtue. Fortitude is a willingness to freely go beyond the call of duty, to make sacrifices, to act on your convictions. Fortitude includes the courage to confront our personal weaknesses and attraction to vice.
Body
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenges and controversy.” (Martin Luther King Jr)
The above quote captures how fortitude is the guard of other virtues. One must be brave in faces the many curve ball and challenges that we face in life. Take for instance, when Gandhiji was being compelled to stop his Salt Satyagraha in 1930, he braved arrest rather than giving up what he believed in.
In our lives many situations arise in which it becomes difficult to do the right thing, even when we know what it is. There may be all sorts of reasons for why it is disagreeable to act according to what we know is best. In order to stay strong, to do what is good, we need the third cardinal virtue, known alternately as fortitude, courage, or bravery. This is the virtue by which we do the right thing, even in the midst of hardship.
When it is the hardest to uphold our virtues, it is fortitude that will support it. For instance, as Kautilya said in context of corruption, when there is honey on the tongue, it is difficult to not taste it. It was seen as the virtue of the soldier, who was determined to offer his life for the sake of a greater good. Now, those of us who struggle to live virtuous lives believe that we too are soldiers, that we too are engaged in battle, although the battle is not a physical one, but rather spiritual.
Conclusion
All the virtues exist as forms of balance, and so must be carefully distinguished from the various excesses which threaten to substitute for virtue. This is especially true in the case of fortitude, with can easily degenerate into extremes of brashness or cowardice.
