GS3 Weekly
(19th – 24th Jan 2015)
[The Undercover Group]
General Studies – 3
Topic: Conservation, environmental pollution and degradation, environmental impact assessment; Disaster & Disaster Management
Q. Modern India has a lot to learn from the traditional water management from the past. Explain in what ways this can be done with special focus on water harvesting and disaster management. (200 Words)
Business Standard
Reference
Ans: In ancient times Indian are known for having various water conservation and management methods. These methods are so convenient that these are suited according to need of any kind of ecosystem.
Various water harvesting methods that can be used are:
1)Tanks:We can have tanks for an area or in each house which can collect rainwater and which can be used for several purposes.It can also be used to collect water when there is a situation of flood.So will help in mitigating flood impact.
2)Johads:It is small earthen dams to collect rainwater and can be used to recharge groundwater.
3)Stepwells:These are also knows water temple.Step wells can be used to collect rainwater and it can be used for various purposes during dry seasons.So drought like situation can be mitigated this way.
4)Kunds: another very efficient method to collect rainwater, which is built underground with cement is used for drinking purposes.
5)kuls: It is a channel in the precipitous mountainous region where rainwater can be guided to flow in this channel and can be used for irrigation purposes in downhill areas.It will help in mitigating flood situation also.
Modern water related problem can be solved by traditional methods. These techniques are very simple to use. They just require participation from communities. So govt can learn these approaches and MNREGA scheme can be used to involve people to build traditional water reservoirs.
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development andemployment.
Q. The finance minister of India called GST as thebiggest taxreformmeasure since independence. Analysethe benefits that can incur to the Indian economy with its introduction. (200 Words)
Business StandardReference
The Hindu
Ans: Goods and services tax (GST) is an indirect tax which is based on the principle of VAT which aims to replace all the indirect taxes on goods and services like state tax, entertainment tax etc. The producer’s then have to pay tax according to its output but the tax on input will be reimbursed to them.
The benefits that GST can have on our economy are:
a) Tax Reforms: It will broaden the tax bases along with increased compliance tax evasion will be difficult in GST regime which allows cross checking. It eliminates cascading burden of multiple taxation.
b) GDP Improvement: This will increase tax to GDP ratio of the government which dipped to as low as 10 percent in the last fiscal year. It will raise more revenue for the government and reduced fiscal deficit, more investment in social sector initiatives.
c) Uniformity: It will integrate indirect taxation system across the states and facilitate common market across states. It will also do away with entry tax thereby giving boost to trade between the states.
d) Transparency: GST is expected to build a transparent and corruption free tax administration. It will give boost to entrepreneurship by reducing confusion regarding taxes enthuse the private sector leading to more investment.
d) Push for Make in India: It will boost the initiative. Along with this it will also give boost to exports. This will also lead to creation more employment opportunities.
e) Inflation Control: Further GST is also expected to bring down inflation in the economy as the prices of the goods and services will be reduced because of a uniform tax rate.
f) Tax Terrorism Removal: Equitable division of tax burden between manufacturing and services without giving any advantage to any sector. This will increase in efficiency in the respective sectors ultimately benefiting the economy.
g) Quality Improvement: It will promote specialization because total tax liability remains same irrespective of number of production-distribution stages. It will encourage firms to purchase inputs from the firms who have paid their taxes in order to reduce their tax liability.
All these benefits of GST make it a more desirable reform needed by the country in immediate future. Addressing the concerns and demands of states on merit basis will be an important breakthrough in its success.
Topic:Indian Economy and issues relating to planning, mobilization of resources, growth, development andemployment
9) “Reforms, economic growth, progress – all are empty words if they do not translate into jobs.” Write a note on initiatives taken by the government to improve employment opportunities in the country. (200 Words)
Business Standard
Ans: Recently government has taken many initiatives with the intent of creating more jobs and meaningful utilization of the vast workforce available in India. Some of the major initiatives are:
1. Make in India - A flagship initiative to boost the manufacturing sector so as to create
ample job opportunities for youth.
2. Apprentice protsahanyojna - to provide assistance and guidance to industries to provide training to new apprentices and they can later be absorbed easily in the industries.
3. Ustaad for encouraging traditional skills like Zardoshi, Fulkari, Embroidary and providing
a market to this art crafts.
4. NaiManzil for skilling madressa pass-outs to join main-stream.
5. Skill Development programs – DeenDayalUpadhyayAntyodaya Yojana to develop 10 lakh skilled youth in next 3 years
6. National Manufacturing Policy and Information Technology policy also envisages creation of millions of jobs in these sectors.
The urgent need is to create more jobs for youth which necessitates skill development. With the favourable condition of 3D – Demographic dividend, Democracy and Demand, India cannot afford to lose this golden opportunity in hand.
Topic: :Indian Economy and issues relating to planning, mobilization of resources, growth, development andemployment
Q. In what ways higher levels of economic inequality hinders economic growth and social mobility in the long run ? Discuss this statement in the light of growing inequality in India. Make a case for re-introduction of inheritance tax in India. (200 Words)
The Times of India
Business Standard
Ans: Inequality in income leads to demand side problems for an economy since people having less disposable income do not generate demands for commodities other than the bare essential.
In Indian agriculture, the weak economic position of marginal and small farmers reduces the economies of scale in farming, they are unable to use new technologies and thus leading to lower output. We have seen how the land reforms, debt waiver schemes, low interest credit to farmers have majorly helped the economical stronger farmers.
The wealthy increase their monopoly. Bigger companies can increase their market share and small/ medium scale industries bear the brunt of high competition from them.
The deprivation of opportunities forces the marginalized to work in low paying jobs. Skill development is sidelined which further reduces the efficiency.
The state has to increase its spending in Social Security Schemes to cater to the needs of increasing number of lower income groups, which increases the fiscal deficit. Adding to the problem is the high rate of tax evasion by corporates and individuals.
The social status of women, dalits etc is further reduced in case of lower income groups. The bargaining power of people with economic power is very high. They are able to influence policy decisions of the government more than those with lower income. The rise in income inequality increases the level of poverty thereby starting a vicious cycle of illiteracy, high population, and unemployment and so on. High crime rate is also attributed to the frustration that comes in people due to accumulation of wealth in a few hands.
Money makes money
In recent times, economists have voiced for reintroduction of Inheritance Tax for lowering of income inequality. According to some, the biggest source of economic inequality today is inherited wealth. It discourages rentier income and encourages professionalism and enterprise. It can help the govt to shore up tax revenues.
Topic:Indigenizationof technology and developing newtechnology.
Q. DRDO has not lived upto its expectations in achieving indigenisation of defence equipment. Critically examinethe factors responsible for its sub-optimal performance and suggest measures to improve the same. (200 Words)
Business Line
PIB
Ans: DRDO is responsible for the development of technology for use by the India’s defence forces. With a network of 52 laboratories, which are engaged in developing defence technologies covering various fields, like aeronautics, armaments, electronics, land combat engineering, life sciences, materials, missiles, and naval systems, DRDO is India's largest and most diverse research organisation.
Recently, Projects most criticized were Tejas, NAG, but are much depended on industrial co-operation also, which is not developed in India as per requirements. Without the support of vibrant technological base it is difficult for any defence organization to complete such projects on its own.
DRDO is also in need of structural review and internal audit. There is also a criticism that within the organization the youngsters are not allowed to move up in the hierarchy. Projects runoffs are cause due to such lethargy.
India’s defence procurement policy is also responsible to dysfunctional projects. Scientist in DRDO need Official approval for buying or exploring many research related equipments and tools from abroad or private sectors. Such Red Tapes are gone against this marvel institution.
It is marvel institution because during sanctions, India has nearly achieved Triad in Nuclear Weapons delivery systems, an indigenous achievement.
Successive governments have not been keen to address the problems in internal functioning of DRDO. There has not been discussion on floor of house as well as in Media importance of healthy functioning of DRDO.
Revamp of DRDO important recommendations:
i) creation of Defence Technology Commission (DTC)
ii) creation of a Commercial Arm of DRDO
iii) creation of technology domain based clusters
iv) Appointment of a dedicated Chief Controller for Human Resources (HR).
Topic:Effects of liberalizationonthe economy, changes in industrial policy and their effects on industrialgrowth
Q. Explain the rationale behind imposing restrictions on Indian pharmaceutical companies in charging a free market price. What are the mechanisms used by the government and add a note on recent controversy regarding drug pricing. (200 Words)
The Indian Express
Ans: Governments have to strike a balance between the conflicting interests of the industry and consumers to ensure affordable medicine without dampening innovation and competitiveness in the pharmaceutical industry. Following a Supreme Court order to regulate drug prices, the PranabSen task force was constituted on the basis of whose recommendations the government set up NPPA under the Essential Commodities Act.
Rationale
It is cleanly summed up in the motto of the NPPA- "Affordable medicine for all"
The availability of drugs at affordable prices is essential for the health and productivity of Indians. Low purchasing power of a large population, high mortality and poor health scenario further prompts the government to intervene.
Mechanism
NPPA sets a ceiling price of 348 essential medicines determined essential by averaging the MRP of all products with >1% market share.
Controversy
NPPA tried to set price ceilings of 100 or so non essential drugs citing its mandate to control prices of non-essential drugs during shortages or emergency. This caused several complaints and litigations from the
pharma companies. India was put under a watch-list of regimes with market-unfriendly IPR and price control bodies.
This hurts our image as a fair market, as well as the upcoming BIT with the USA. The government revoked NPPA's authority to control prices for non essential drugs although efforts continue to bring more drugs into the essentials list. Prices of certain drugs shot up exponentially causing distress to several affected citizens.
Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public DistributionSystem- objectives, functioning, limitations, revamping; issues of buffer stocks and food security;
Q. FCI is a lynch pin in the food security program of India, yet failure of successive governments to reform the organization has resulted in huge losses to the exchequer. Highlight the deficiencies in the running of Food Corporation of Indiaandsuggest measures to revamp it. (200 Words)
Business Standard
Ans: Food Corporation of India, a nodal agency for procurement of food grain and its distribution through public distribution, has not performed to it's expectations.
Deficiencies
-Regional Disparity-FCI storage canters have been concentrated only in green revolution zone.Large part of the eastern India is devoid of FCI storage cneters and weakens the forward and backward linkages
-Lack of Infrastructure-FCI procures more than what it can store.Extra food grain rot in the open because of lack of storage capacities.
-Lack of Monitoring mechanisms-Inefficeint and ineffective monitoring mechanisms have encouraged corruption,pilferage, inefficiency to creep into the administration
-Functional Autonomy-Over centralization curtails the autonomy of FCI and reduces it's efficiency
Measures
-Decentralization in East- Expanding the network of FCI in remote areas of the east
-Institutional reforms-Coupling FCI storage centers with food processing centers, better transport facilities can help it reach big and small farmers alike
-Capacity building-Training it's professionals, corporatizing the FCI management can bring in more efficiency
-Storage only to a predetermined level beyond that food grains should be released in the market thereby helping in taming food inflation
Topic: Conservation, environmental pollution and degradation, environmental impact assessment
Q. Though the tiger census has brought the good news of increase in the number of tigers by thirty percent, thesurvey methodology has drawn criticism from some quarters. Discuss. Give your suggestions to further improve tiger conservation efforts in the country. (200 Words)
The Indian Express
Ans: The recent Tiger census reports cites nearly 30 percent increase in Tiger population which is a welcome change from the past trends and a much awaited positive development.
However the methodology employed for the census is a point of discussion. The government has used the "refined methodology of double-sampling using camera traps" of 1938 for the big cat population estimation.
But this is not the best available methodology for this task and superior alternatives based on occupancy modelling approaches have evolved that are more apt in present context and more cost effective.
The present method faces criticism on:
a) "Double sampling approach" used by NTCA: In this method, two sets of data are collected from photographing tigers through cameras and counting paw-marks or droppings. It is now considered obsolete.
b) Statistical extrapolation: This method is weak and may yield flawed results. And given the vast geography of the area, the method may not yield refined results.
c) Silence on Area: Tigers now occupy only half of the area, than originally occupied but the report is silent on this aspect.
Some of the ways suggested for Tiger conservation are:
a) Regulation: Strict regulation of India’s Tiger tourism. Tiger corridors must be designated as ‘eco-sensitive’ areas.
b) Measures for Poaching and Trade: Making the punishment fit the crime and ramp anti-poaching measures will help immensely. Maintain and enforce laws banning tiger products.
c) Habitat and Corridors: Protecting tiger habitats like parks and establish new protected areas for tigers. Create corridors that connect forests and allow tigers to roam to find adequate prey
d) Check Inbreeding: Corridor creation and strictly management of buffer zones will increase mates for breeding and gene pool to raise population.
e) Address Legal Loopholes: Address the environmental laws that bypass scrutiny and destroy forests for commercial activities.
f) Human Animal Conflict: Reduce tiger-human conflict by educating people in the vicinity of Tiger reserves .Joint forest management involving both the state forest departments and local communities will increase their will and community progress.
g) Research and Awareness: Develop critical tiger wildlife research and monitoring techniques and promote research. Cooperation with NGOs and civil society to raise awareness in this regard is a must.
With strong cooperation and sustained efforts from the Centre and state governments, the non-governmental sector and people should make it is possible to raise and conserve the big wild cat, Tiger, our National Animal.
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development andemployment.