Question · 4083 words written
Opening
Windfall tax
"The most important obligation of state is to secure the well being of the citizen." Kautilya
Windfall tax refers to tax on sudden and unexpected gain by an individual or corporation due to reasons beyond his/her control.
Eg The recent tax applied on gains by refinery companies in India by government when the prices saw an increase due to the conflict in Ukraine.
Body
Windfall tax and redistribution of tax
Criticisms → It can lead to cutting of profit of the firm, which would affect its long term productivity.
→ May lead to tax evasion → Windfall gains are not truly unexpected, but are planned by the companies → It can kill innovation and risk taking → Can increase price of consumer
Positive → It can help redistribute windfall gain back to consumer by government spending. → It makes sure the company is not able to exploit this situation
In order to be effective windfall gain tax must be rational that promote the greatest economic efficiency both at the consumer and at the company end.
The Monetary Policy committee was established by amending the RBI act to balance the need of sustained economic growth along with a sustainable low inflation in the economy. Its mandate is to restrict inflation at 4% ± 2 band and provide a plup to economic growth.
Success of MPC
MPC has been able to achieve its goal inflation targeting except last year.
→ There has been harmony between RBI and the government
→ MPC has been able to change according
global pressure. → It has also taken into consideration growth by not constrn increasing policy rate to curb inflation.
Challenges
→ MPC was unable to achieve the target last year when inflation averaged around 6.5%. Wholesale inflation also went to double digit. → But the reason was global headwinds and it was driven by food and fuel inflation, the core inflation was far more stable.
The MPC alone cannot control inflation. It needs the active involvement of the government that controls the fiscal and spending side of the equation.
"Gems will no life sustain, best of gold is golden grain."
- Hitopdesh
Millets or 'Shree Anna' have been called miracle crop due to their immense benefits for the consumers, producers as well as the environment.
Millets for producing Agricultural sustainability
Millets are excellent adaptation as well as mitigation crops
→ Can be grown in rainfed, nutrient deficient soil.
→ Thus, no need for extensive groundwater extraction and fertilizer application
→ Can be a choice of production for poor farmers (85% are small farmers in India)
Improving food security. 85% of total foodgrain is rice and wheat. Cereals contribute only 10% of the total cropped area.
☆ These are low glycemic index food, have higher dosage of micronutrients like iron, pro → High dose of iron, protein making them nutrient rich food. → Will help make the food supply chain more resilient. → Will lead to nutritional security rather than only food security.
For the production of millets in India is continuously decreasing. Government needs to take concrete steps like increase MSP to improve their cultivation.
Jal jeevan mission was launched to provide every Indian with 55 litre of potable water per day and achieve the SDG related to clean water.
Significance of the Mission
→ According to NITI Aayog 25 cities were facing 'day zero' conditions (water will be over)
→ Lack of water in regions such as Marathwada, Vidarbha, interior of Odisha (Kalahandi) etc.
→ Water leads an important part in health and sanitation (WASH)
→ Women spend their time (2/3 rd women - some upto 50% of their time)
In fetching water.
Impediments in achieving the targets
→ Institutional and Regulatory challenges → uncertainty regarding tubewell policies, water use committees, water charges
→ Uneven and irregular distribution of water
→ Geographical challenges like isolated location, naxal and terror affected region
→ Lack of awareness among people
→ Not enough finance distribution
The scheme needs to be converged with other asset creation program like MNREGA to achieve 100% saturation
Battery energy storage systems refers to the suite of technologies that help store energy from a energy generating process like solar, hydro, nuclear for future use in a sustained and safe manner.
Applications of battery energy storage system
→ Can help in storing renewable energy for use in deficient times. → Can help in electric mobility. → Reduce carbon emission by storing energy for future use.
→ Can help decarbonise hard to abate sectors like aviation, shipping, refinery, industry
BESS and Indian energy program
→ It can help realise the goals of 'Panchamrit' by helping in renewable energy storage → fill in the gap due to poor evacuation infrastructure for renewable energy. → Help realise 'energy for all' by helping in isolated areas. → Give fillip to e-mobility and green hydrogen mission.
The governance structure of energy program should be such that every stakeholder is equally benefitted.
"Space may seem far away, but it is an integral part of our lives."
- Hon'ble PM.
Gaganyaan mission is the Indian human space flight mission set to demonstrate India's ability of sustaining human space flight and associated technologies.
ISRO has successfully tested the Crew Escape Module, Human rated LMV (Launch vehicle); service module; astronauts (gaganauts) were sent to Russia for training.
integrated air drop test → Pad Abort test → test vehicle test mission → unmanned → manned flight (done till here).
Challenges in Gaganyaan Mission
→ Lack of astronaut training facility in India. → Risk to astronauts. → Lack of experience in manned flights. → tracking of astronauts in the space and protecting them from cosmic radiation.
Benefits of the mission for society
→ Will allow future sustained mission in space – ability to perform experiments in micro gravity. → have immense potential for experiments in field of health and food/ agri-systems. (Chinese took rice seeds with them in space and will plant those). → Will give a moral and mental boost to the youth and scientistsh → development of scientific temperament among the people. → Will cement India's position as a major space power.
India launched the Green Hydrogen Mission to become a global hub and net exporter of green hydrogen.
Green hydrogen that is made from electrolysis of water using renewable energy can be the silver bullet in tackling climate change & pollution.
But there are certain creases that need ironing out
→ High cost of manufacturing → ROI vs coal and natural gas.
→ Lack of manufacturing capability of electrolysers in India. (80% imported.) → Use of conflict minerals in batteries and electrolysers (Therefore not completely renewable) → Concern about overuse of water - India is already highest extractor of ground water → Fledgling technology and lack of certainty about policy and regulatory environment
All of these problems can be solved by sustained effort at unlocking the economies of scale and government incentive for jumpstarting project.
It will prove a game ally in achieving energy security that is set to increase to 1.7 x by 2030.
Recently, Joshimath a small town in Uttarakhand saw land subsiding and displacement of population due to rampant and unsustainable development coupled with geological reasons.
Key lessons learned from the Disaster
→ The land subsided since it was built on glacial till deposits. So geological vulnerability mapping must be done before undertaking developmental project.
→ The Joshimath NTPC power project caused bursting open of an underground reservoir. Therefore utmost precaution must be undertaken for hydro power projects in Himalayan regions.
→ Development and tourism activities must be sustainable and in control. → According to Wadia Institute of Himalayan, Dehradun - there is an increased risk of glacial lake outburst flow in the himalayan region. → Capacity building of local people and incorporation of local people and local knowledge in disaster relief activities (J.C. Pant committee). → Contingency plan must be in place for rescue and rehabilitation for people. According to IPCC AR6 the occurence of extreme climatic events will drastically increase in coming year. To overcome those we must have adaptation and disaster resilience built in developmen proven by design.
Punjab has seen a violent Khalistan movement, abetted and fanned by Pakistan as a state sponsored policy to break India with thousand cuts.
Operation Bluestar and the assasination of Indra Gandhi and the 1984 riot all deepened the wounds.
Recently we saw rise of separatist parties, separatist leaders, calls for referendum, attack by radicals in Indian embary in UK and America.
There is almost neglegible support of Khalistan by Indian Sikhs. The movement is mainly driven by Pakistan backed foreign radicals.
Measures to handle the Khalistan issue
- Counter propaganda by India on lines of USA counter propaganda communication strategy.
- Increased surveillance and security of Indian embanys.
- Extradition of nationals involved in attacks on Indian people and property in foreign.
- True devolution and decentralisation of power in state.
- Robust border security and combating the drug trade in Punjab.
- Strategy of winning hearts and minds of the estranged people.
Sikhs remain one of the most loyal citizens in India serving in Army and civilian roles alike.
Drones have become the preferred choice to deliver drugs and drop arms and help in infiltration especially in the western borders of India.
Hon'ble Home minister had remarked "Terror is moving from guns to drones."
- Drones are low flying and small cross-sectional area → Hard to identify on radars.
- Anti-drone missile systems are expensive. cost of drone > cost of missile to take it down.
- Drones are easy to use and cheap.
- Drones can be improvised and turned into carriers or loitering munitions by sticking a bomb to it.
Suggestions to tackle drones
- Build human intelligence network to track movement of drones in sky.
- Equip low-altitude radars at places with high frequency activity.
- Use non-kinetic anti drone systems → EWS-suite or Indrajaal of DRDO.
- Aware people about drone attack and smuggling by drones.
- Arrest smugglers and investigate the channels that employ drones.
- International cooperation to stop drones for terror activities with other countries.
India must equip itself with anti-drone and counter-drone systems since war is increasingly going into non-traditional domain.
Electricity Amendment Bill 2022 was brought in to effect a paradigm shift in the energy ecosystem of the country.
Since India's energy demand is bound to increase 1.7 time (IEA) by 2030, it is an important step towards promoting energy security and ecosystem.
Key features
→ Dismantling the dominance of state-owned Discoms (license reform) → CERC will set the floor price. → Network owning Discoms will have to allow private discoms to use its network for a fee.
Advantage for consumer
→ Increased choice among DISCOMs.
→ Increased competition will lead to better price discovery. → Better quality of service.
Advantage to Discoms
→ Licensing reforms → Dismantling dominance of network owning DISCOMS. → Anyone can set up a Discom and use existing network for distribution → fee to network owning discom → Incentive to cut on AT&C losses - 20%.
Advantage to Environment
→ Obligation on Renewable Purchase obligation → Renegotiation of Power-purchase Agreements → ease of business for renewable prosumers → would lead to better efficiency and fillip to renewable energy generation.
Shortcomings
→ States see it as affront on federation. → Central Authority will set base/floor price → effect on subsidies given by state. → Network owning discom may use fee to cross subsidisation and gain unfair advantage. → Backdoor to crony capitalism.
Suggested Reforms
→ Procedural safeguards for crony capitalism. → Consultative mechanism for tariff between state and centre. → Rationalisation of subsidies. → Othe steps - smart meters, feeder separation, rooftop solar panels.
The Amendment is a positive step by the government.
SEBI established as a statutory body in 1992 in the afterman of Harshad Mehta scam is a premier institute to safeguard the interest of investors in securities and to promote development and regulation of the stock market.
Recent controversies like Adami controversy and NSE Chitra Ramkrishnan scam, co-location scam etc. has put questions on the role as the SEBI was caught lacking.
Challenges faced by SEBI
→ funding issues : Major part is committed expenditure in salaries, pension etc.
lack of funds for new technologies to detect scams.
- Capacity building of employees is not upto the mark.
- Financial literacy among people are miniscule.
- Government intervention in selection of SEBI chairman.
- International and transnational character of scams - making it difficult to detect and act.
- Lack of robust security measures in connected institutions like Banks, stock brokers etc.
Reforms suggested → Innovate methods of financing and
Rationalisation of committed expense. → Use of latest technology like AI, Machine learning and Big Data Analys to flag scams. → Capacity building of employees. → Fixing legay issues in Banks (PNB scam), stock exchanges. → Awareness campaigns for investors and code of conduct for stock brokers. → Strict action on illegal activities like front running, insider trading and dabba trading.
There is a need for multi international cooperation.
A multistakeholder approan is needed to turn SEBI from a reactive to a proactive institution.
“ Gems will no life sustain, best of gold is golden grain. ”
- Hitopdesh
Agriculture is the backbone of the country. It constituted 18% of GDP. India with 20 agroclimatic zones and 46/60 types of soil provides food for the whole world.
Issues in Agriculture in India
→ Underemployment - despite only genraty 18% GDP it employs 45% of workforce.
→ Handkerchiy size holdings → average size is 1.2 hac (85% is small farmers).
→ thin file cliems → 55% are landless agriculture labourers. Share of non-institutional loans is 2/3rd.
→ Reliance on uneven, unforadivable rainfall - 55% area is rainfed.
→ Unpredictable government policies → export policy → MSP - few take beneft, skewed towards rice and wheat → subsidy - leading to overuse of fertilizers - urea
→ Bottlenecks in food processing - laws like Essential Commodity and APMC Acts. • Lack of infrastructure and high logistics cost.
→ Plateuing yields when compared to countries like china and America
Technological solutions
→ Modified crops - with better yields, pest resistance and biofortification using gene editing technology.
→ Satellite service for weather prediction eg Skymet and M-KISAN app
→ Online marketplace for better price discovery eg e-NAM
→ Technologically improved inputs like micro-irrigation, nano-fertilizer eg nano-Urea, soil health cards
→ Skill training of farmers at Krishi Vigyan Kendras
→ Transformative steps such as digital Agriculture eg Indian Digital Agriculture Enterprise, hydroponics, aquaponics
→ Using drones for land record maintenance
Technological intervention in Agriculture will unlock the animal spirits in Agriculture and lead to resilient food systems.
According to a report by NITI Aayog India is a net water exporting country mainly due to 13% of Agri exports. It is a double whamy because India is also the largest extractor of GW with 2/3 of GW overexploited and polluted.
Impact of irrigation on Environment and natural Resources
- Excese irrigation can lead to alkanali-sation of land and decrease in crop yields.
- Runoff of irrigation causes eutrophication and harmful algal bloom.
- Excessive stress on water resources like groundwater, rivers.
leading to water shortage for cities, drincing water.
★ Uneven irrigation disturbs weather patterns since water vapour is a potent green house gas.
★ Diversion of water for irrigation can lead to low influx of freshwater in seas/oceans leading to loss of coastal ecology and marine life.
★ It can also lead to soil erosion and formation of gullies and ravines.
Measures for sustainable irrigation practice
→ Integrated watershed development and rainwater harvesting.
→ Establishment of pani panchayats
and water use committees of Kerala.
→ Micro irrigation techniques like drip irrigation and root irrigation.
→ Rationalisation of power subsidies for irrigation and feeder separation eg in Punjab.
→ Traditional knowledge like naulas in Uttarakhand, Johads in Rajasthan and bamboo irrigation in Meghalaya.
→ Ban on new tubewells and rationalisation and regulation of existing tube wells.
→ Interlinking water-surplus and water-deficient river channels with safeguard.
→ govt steps like Amrit Sarovar, Catch the rain campaign.
Mihir Shah recommendation should be looked into.
Technology forms the subtext of human development. [Dr. C.V. Raman] rightly said no human development is possible without creation of scientific and social knowledge.
[Contribution and impact of Homi Jehangir Bhabha]
→ Laid the foundation of Department of Atomic Energy along with Pt. Nehru.
→ Supported establishment of INCOSPAR along with Vikram Sarabhai.
→ According to G. Perkovich in book 'India's N bomb' - he had Indian Atomic bomb in mind as director of DAE.
→ Laid the foundation of India's 3 stage nuclear programme. → India benefited of the 1998 nuclear test that made us strategically important and gave us security in evolving geopolitical scenes. → The upcoming H4D project is also a buildup that we reaped due to efforts of Dr. Homi Bhabha.
Contribution and impact of Dr. Vikram S.
→ Established INCOSPAR, precursor of ISRO. → helped establish IIM Ahmedabad and Space centre in Ahmedabad. → ISRO's recent success of Chandrayaan and upcoming projects like Gaganyaan and Aditya mission all owe
a great deal to their vision. → His efforts India a major contender for space super power and early adoptor of technologies. → Also led to development of dual use civil military technology (eg MIRV) → Led to development of Indian missile programme
India's success today is indebted to great scientists like Homi Bhabha, Vikram Sarabhai, Satish Dhawan, K. Sundary, Arunam Chalar, APJ Abdul Kalam etc.
We should increase investment in R&D from 0.65% to 2-3% of GDP to take sustained and high economic flight.
Generative Artificial Intelligence is a subset of AI technology that has the potential to create entirely new text, images, graphics, ideas, animation or from a simple user input.
They are based on infrastructure like pretrained transformer, large language model, generative adverserial networks (GAN), variational autoencoders (VAE).
They have opened new dimensions and pushed boundaries of innovation. Anyone can write songs, compose
music, make graphics using generative AI.
→ Will make the life of people easier by helping them in mundane everyday tasks.
→ Cost saving and improved efficiency
→ Improved innovation - as machines can think like human beings.
Impact on society and concomitant challenges
→ It has led to base bastardisation of creative jobs like music compose, artist, song writers etc
→ It will carry ailen - one like ailen to creativity will cause decrease in value and wage of creative jobs
It will take toll on mental health since man pursue creativity for intellectual invent and peace. Now machine is better than most humans.
→ Reflection of biases and prejudices in training data in results by Generative AI.
→ Issue of copyright since they were trained on copyrighted material - whom would the copyright of generated work belong - artist in training data, consumer or AI.
To combat these significant impacts - scientists led by Elon Musk have asked to put a moratorium on development of superior AI till procedural safeguards are set.
COP 27 in Shram-el-Sheikh Egypt was the international conference of parties to the UNFCC that came into existence as a result of Rio Earth summit in 1992 with a goal to stop climate change.
One important declaration other than Shram-el-sheik implementation strategy was 'Mangrove Alliance for Climate'.
The purpose of this alliance is to safeguard and protect the dwindling mangrove forest in the world. → It aims at sustainable use of mangroves and development of the local people dependent on it.
→ It also aims to promote mangrove plantation and regeneration.
Importance of Mangrove in maintaining tropical ecology
→ Mangrove act as ecotones and give rise to edge effect.
→ Helps in protecting diverse biodiversity.
→ Act as stormbreakers and protects cities from inundation as in Philippines and Indonesia-Malaysia.
→ Stores a lot of carbon and help control climate change and global warming.
→ Provides a wide variety of ecosystem, regulating and recreative services.
→ Provides local community with livelihood options.
→ Regulates the salinity in the coastal areas.
→ Helps prevent erosion of coastal sand.
→ Protects the marine biodiversity and help farmers in fishing.
MAC along with other mangrove initiative like MISHTI and SAIME (India), friends of Mangroves etc will help achieve SDG 15 (life above land) and indirectly help achieve other SDG as well.
Coalition for Disaster Resilient Infrastructure was launched by India at leaders meet in New York to mainstream disaster resilience in the process of development.
It was a logical step and a force multiplier after global conventions like Hyogo framework and Sendai framework for DRR.
CDRI aims at correcting the balance between Adaption and mitigation. Present global policies are heavily biased towards mitigation. Small island developing states are at the receiving end. Tuvalu will cease to exist by 2050.
New strategy to tackle Disasters in India
Indian approach to disaster is heavily biased towards the post-disaster phase.
It is heavily concentrated on rescue and adhoc rehabilitation.
India's approach to disaster has been adhoc and reactive and response in fragments.
Although there have been some great case studies like Odisha model where they take integrated view of disaster and early warning sys.
There is a need to take an integrated and holistic view rather than a disaster specific approach.
One disaster map with vulnerability mapping at hyper granular level. Integrating building of resilient infrastructure to deal with disaster of future (AR6 - & will increase in future).
Provision for adequate finance and overhaul of DMA 2005 (standy committee) and inclusion of local people in Disaster risk reduction (J.C. Pant committee).
There is a need to move to a proactive, multidimensional approach.
With the advent of internet and globalization cyberspace has become the preferred medium of nefarious activities and is evolving as a new theatre of war and non-state actor attacks.
The rising case of ransomware attacks like Lockbit and Rust attacks in USA, hacking of AIIMS Delhi server and attack on critical infrastructure of Iran has highlighted concerning trends.
Key factors contributing to this trend:
→ High return on investment → since it is low cost and result is very high.
→ All pervasive nature of Internet and
rising interconnectedness of the world. → Use of legacy systems and patchy softwares making it easier along with low awareness among people. → lack of international cooperation and transnational character of crime. → High anonymity and relative safety to the attacker. Impact of Ransomware attacks on sectors Health sector → Ransomware attack on AIIMS Delhi led to stopping of health service, confusion and potential data leak. → CoWIN leak case. Information - online → leaking of online data like phone number, credit cards, etc.
Energy → Iran and Mumbai power line attucks → Leads to stalling of all services.
Industry / services / manufacturing → can lead to stoppage of all activities and loss to GDP.
Ransomware attacks erode trust of consumers in the system.
There is a need to patch legacy system, train people, and build security by design in computer systems. Only by this we shall be able to safeguard and restore trust and take full benefit of the growth of internet.
According to strategic expert Nitin Gokhale India cannot achieve the $5 trillion target of GDP without effective management of coastal and territorial boundaries.
To give effect to this Kargil Review committee, Shekatkar committee etc. have advised better coordination and cooperation among the border agencies.
Further steps are needed
→ Liaisoning and better coordination
in the maritime domain between Indian Navy, Indian coast guard and Marine police of states (CAG → lead coordinator).
Coordination between different intelligence agencies like IB, R&AW, Defense Intelligence Agency, NTRO, GridAC, IFC and NATGRID initiatives taken.
On the borders:- North East - Assam Rifle has dual control structure. Other borders - between BSF and Indian Army and BSF and local police.
There is a need to take steps towards theaterisation of commands.
Close
Although steps have been taken but every force have their concern. Accordy to Air Chief Marshal RKS Bhadauria it will lead to pauperisation of Air force since Airforce already have lean air caps and won't be able to perform om offensive role
Steps must be taken to integrate Indian Airforce with Indian Navy Airchat carrier and Local level theaterisation like Integrated Battle group and specialised integrated Strike corps can be established accordy to Bharat Karnad.
To safeguard India, a coordinated and cooperative structure is sine qua non.