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| Exclusive for Subscribers Daily: Manual Scavenging and Consumer Price Index (CPI) for the UPSC Exam? Why are topics like Multidimensional Vulnerability Index (MVI) , Current Account Deficit (CAD) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for December 10, 2024 |
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Critical Topics and Their Significance for the UPSC CSE Examination on December 10, 2024
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
For Preliminary Examination: Focus on constitutional provisions, government schemes, and laws related to manual scavenging.
For Mains Examination: Essay, GS Paper II (Social Justice), GS Paper III (Infrastructure, Technology), and Ethics (Dignity and Rights)
Context:
As per the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (MS Act, 2013), manual scavenging is a banned activity in the country with effect from 06.12.2013. No person or agency can engage or employ any person for manual scavenging from the above date
Read about:
Manual Scavenging
Manual Scavengers and their Rehabilitation Act, 2013 (MS Act, 2013)
Key takeaways:
Manual scavenging refers to the practice of manually cleaning, carrying, disposing of, or handling human excreta from insanitary latrines, drains, or sewers. It is a highly stigmatized and hazardous activity predominantly undertaken by marginalized communities in India.
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Constitution of India:
- Article 14: Right to Equality.
- Article 17: Abolition of untouchability.
- Article 21: Right to a dignified life.
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Legislative Framework:
- Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993: Prohibits the construction of dry latrines and the employment of manual scavengers.
- Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013:
- Prohibits manual scavenging in any form.
- Mandates mechanization for cleaning sewers and septic tanks.
- Provides rehabilitation measures, including skill training, financial aid, and alternative employment opportunities.
- Most manual scavengers belong to Scheduled Castes and face systemic discrimination.
- Exposure to toxic gases and pathogens leads to severe health issues, including respiratory disorders, infections, and even death.
- Despite legal prohibition, manual scavenging persists due to poor enforcement and lack of alternatives
- Lack of alternative livelihoods forces individuals to continue this hazardous occupation
- Mechanization of cleaning processes is limited in rural and urban areas due to inadequate infrastructure
Government Initiatives
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National Action Plan for Mechanized Sanitation Ecosystem (NAMASTE):
- Aims to eliminate manual scavenging by promoting mechanized cleaning of sewers and septic tanks.
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Self-Employment Scheme for Rehabilitation of Manual Scavengers (SRMS):
- Provides financial assistance, skill training, and loans for rehabilitation.
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Swachh Bharat Mission (SBM):
- Focus on constructing sanitary latrines to eliminate the need for manual cleaning.
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Skill Development Initiatives:
- Government collaborations with NGOs to provide training and alternative employment opportunities.
1.Which of the following statements regarding manual scavenging in India is/are correct?
- The Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013, explicitly prohibits the construction of insanitary latrines and manual cleaning of human excreta.
- The National Action Plan for Mechanized Sanitation Ecosystem (NAMASTE) aims to eliminate manual scavenging by 2025.
- Article 21 of the Indian Constitution explicitly mentions the prohibition of manual scavenging.
Select the correct answer using the codes given below:
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Answer (b)
Therefore, statements 1 and 2 are correct. The correct answer is: (b) 1 and 2 only |
How inflation affects cost of living?
For Preliminary Examination: Consumer Price Index (CPI), Wholesale Price Index (WPI)
For Mains Examination: GS III - Economy
Context:
Driven by a 10.87 per cent spike in food prices, India’s retail inflation surged to a 14-month high of 6.21 per cent in October this year. While unseasonal rains and extended monsoons in certain parts of the country contributed to the surge in vegetable prices, rising global food and fuel prices due to geopolitical tensions also contributed to domestic inflation.
Read about:
Inflation
Consumer Price Index (CPI)
Wholesale Price Index (WPI)
Key takeaways:
What is Inflation?
Inflation is the rate at which the overall price level of goods and services rises over time, leading to a reduction in the purchasing power of money or real income. Simply put, as inflation increases, each unit of currency buys fewer goods and services than before.
Rising inflation has a significant impact on households, particularly those with fixed or lower incomes. As the prices of goods and services increase, the same nominal income can buy fewer items, thus raising the cost of living.
Understanding Nominal and Real Income
Nominal income refers to the total monetary earnings of an individual, household, or entity over a given period. For example, if someone earns ₹50,000 per month, this is their nominal income. However, as inflation rises, the real value of this amount diminishes.
Real income, on the other hand, represents the actual purchasing power of nominal income after accounting for inflation. It can be calculated using the formula:
Real Income = Nominal Income ÷ Price of Goods
Real Interest Rates and Inflation
Inflation also affects real interest rates, which are derived by subtracting the inflation rate from the nominal interest rate. For example, if the nominal interest rate is 10% and inflation is 8%, the real interest rate would be 2%.
Real Interest Rate = Nominal Interest Rate − Inflation Rate
When inflation rises, real interest rates decrease, potentially discouraging savings, as the real value of money grows at a slower pace.
Measuring Inflation
Several methods are used to measure inflation, each focusing on different aspects of price changes:
Consumer Price Index (CPI)
CPI measures changes in the general price level of goods and services purchased by households, including both domestically produced and imported items. Published monthly by the government, CPI reflects the inflation experienced by consumers. The formula for calculating inflation is:
Inflation Rate = ((CPI x+1 − CPI x ) / CPI x) × 100
Here, CPI x refers to the base year’s CPI value. Annual inflation rates are determined by comparing the current month’s CPI with that of the same month in the previous year. In India, the Ministry of Statistics and Programme Implementation (MoSPI) calculates and publishes CPI data at both national and state levels.
Wholesale Price Index (WPI)
While CPI reflects retail price changes, WPI measures wholesale market price changes for goods. It tracks the inflation rate across 697 bulk commodities but excludes the cost of services like haircuts or banking transactions, which are included in CPI.
For example, the WPI inflation rate for October 2024 in India was 2.36%, while the CPI inflation rate for the same period was 6.21%, highlighting differences in their scope and calculation.
GDP Deflator
The GDP deflator measures inflation by tracking changes in the prices of all domestically produced goods and services. It is calculated using the formula:
GDP Deflator = (Nominal GDP ÷ Real GDP) × 100
Unlike CPI, the GDP deflator includes all goods and services produced domestically but excludes imports, making it a comprehensive measure of inflation.
Producer Price Index (PPI)
PPI captures the average price changes received by producers for their goods and services. Unlike CPI, it focuses on prices from the producer’s perspective, excluding taxes, transport costs, and trade margins.
Wage Inflation
Wage inflation measures the rate at which wages increase over time, reflecting changes in labor market dynamics. Labor unions often negotiate wage hikes based on expected inflation to ensure a positive real wage increase. For instance, if inflation is projected at 2%, unions may push for a wage hike exceeding 2% to maintain workers' purchasing power
Follow Up Question
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Answer (C)
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- UN General Assembly officially introduced a new data-driven “vulnerability” index designed to assist small island states and developing nations in accessing low-interest financing.
- The “Multidimensional Vulnerability Index” (MVI) is intended to complement traditional metrics like GDP by providing additional insights into vulnerability.
- Since the 1990s, small island developing states (SIDS) that do not qualify for low-interest development financing based on GDP per capita but are still susceptible to external shocks such as climate change have advocated for such a measure.
- After extensive discussions to finalize the framework of the new tool, the General Assembly adopted a resolution by consensus on Tuesday, which mandates that the UN and an independent expert committee regularly update the index.
- The MVI, based on recommendations from a UN high-level panel, includes indicators related to a state's structural vulnerabilities and its economic, environmental, and social resilience.
- These indicators cover factors such as reliance on imports, exposure to severe weather events and pandemics, effects of regional conflicts, refugee inflows, demographic pressures, availability of water and arable land, and child mortality rates.
- Initially proposed by small island states, the MVI is designed to assess vulnerabilities and resilience to external shocks across all developing countries, ensuring its credibility and comparability.
- Although the use of the index is voluntary, the resolution encourages UN bodies and multilateral development banks to consider integrating it with existing policies. The Alliance of Small Island States (AOSIS) has expressed support for the resolution
- Human Development Report (UNDP)
- World Economic Situation and Prospects (UN DESA)
- World Investment Report (UNCTAD)
- Global Education Monitoring Report (UNESCO)
- State of the World's Children Report (UNICEF)
- World Health Statistics (WHO)
- Global Environment Outlook (UNEP)
- World Population Prospects (UN DESA)
- World Migration Report (IOM)
- Global Sustainable Development Report
1.Which of the following reports is NOT published by a United Nations agency?
a) Human Development Report
b) World Economic Outlook
c) Global Education Monitoring Report
d) World Happiness Report
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Answer (b)
While the IMF works closely with the UN and is part of the broader UN system, it is technically an independent international organization and not a UN agency. The IMF was created alongside the World Bank at the Bretton Woods Conference in 1944, separate from the United Nations structure. |
- On August 21, 2024, the National Green Tribunal (NGT) instructed the Union Ministry of Environment, Forests and Climate Change (MoEF&CC) to provide an affidavit outlining its stance on the extensive forest land encroachment in Sonai Rupai Wildlife Sanctuary, Assam, which has been ongoing for several years.
- This affidavit should address the findings reported by the Principal Chief Conservator of Forest, Assam, on July 15, 2024. Additionally, the NGT's eastern zone bench directed the Chief Secretary of Assam to resubmit a corrected affidavit within four weeks, as the previous one was deemed defective.
- The affidavit from the Principal Chief Conservator of Forest revealed that approximately 300,000 individuals have encroached upon the sanctuary, clearing lowland evergreen and semi-evergreen forests, and establishing permanent structures and agricultural activities, including the cultivation of commercial crops such as betel nut, coconut, rubber, and tea. It also highlighted that around 23,028 claims have been made under the Forest Rights Act, 2006, in Charduar Reserve Forest, Balipara Reserve Forest, and Sonai Rupai Wildlife Sanctuary.
- The report included a chart showing that about 50,241 hectares of the total 73,524.86 hectares of reserve and protected forest land are currently encroached upon.
- On August 22, 2024, the Divisional Forest Officer (DFO) of Renukoot, Sonbhadra, filed an affidavit in response to an NGT order from May 10, 2024, regarding ongoing surveillance of the Dongia reservoir reserve forest area in Pipri, Sonbhadra, Uttar Pradesh. This surveillance aims to prevent illegal activities in the region.
- The affidavit addressed the issue of unlawful encroachments and tree felling in the reserve forest, which threatens the forest, wildlife, and aquatic animals. The report detailed that illegal activities were being conducted by the Chairman, Digvijay Pratap Singh, the executive officer of Nagar Panchayat Pipri, and their associates.
- The affidavit also noted the presence of diverse wildlife in the reserve forest, such as deer, leopards, and peacocks, and crocodiles in the reservoir. The DFO’s report confirmed that illegal activities were being carried out by various individuals, including Pradeep Kumar Singh, Vijay Bahadur Singh, and Anil Kumar. The forest department has taken strict action, halted illegal road extension work, and addressed issues related to illegal tree cutting, installation of iron sheets and gates, and encroachments
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National Green Tribunal (NGT)
The National Green Tribunal (NGT) is an autonomous and specialized judicial body in India established to handle environmental disputes and issues related to the protection and conservation of the environment.
Here are the key details about the NGT:
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The "India Status Report on Road Safety 2024," compiled by the TRIP Centre at IIT Delhi, highlights the country’s slow progress in achieving international targets for reducing road accident fatalities. The report underscores the relationship between road construction, mobility, and the need for a tailored approach to reduce road accidents.
Key Findings of the Report
The report examines road safety in India using First Information Reports (FIRs) from six states, along with audits of state compliance with Supreme Court road safety directives. It reveals disparities in road traffic death rates across states, highlighting the vulnerability of motorcyclists and the high fatality rates in crashes involving trucks. Road traffic injuries continue to pose a significant public health challenge in India, with limited progress in reducing fatalities, despite developments in other sectors. Most Indian states are unlikely to meet the UN’s Decade of Action for Road Safety target of halving traffic fatalities by 2030.
In 2021, road traffic injuries ranked as the 13th leading cause of death in India and the 12th leading cause of health loss, measured by Disability-Adjusted Life Years (DALYs). In six states (Haryana, Jammu and Kashmir and Ladakh, Punjab, Rajasthan, Uttarakhand, and Uttar Pradesh), these injuries were among the top 10 causes of health loss.
Why Crash Surveillance is Crucial
India's road safety data systems are inadequate for shaping effective policy. The country lacks a national database of individual crash data. Current road safety statistics are aggregated from police station records at various levels before being published, allowing for only basic analysis, which hinders the creation of effective interventions. Additionally, comparisons with other datasets, such as the Global Burden of Disease (GBD) study and the Sample Registration System (SRS), show inconsistencies, particularly concerning the mode of transport involved in accidents—a critical element in road safety management.
Due to the absence of a comprehensive crash surveillance system, the report relied on FIRs from six states and road safety governance audit reports.
State-Level Road Safety Performance
The report highlights significant variations in road safety across India, with death rates per capita differing by more than threefold between states. In 2021, Tamil Nadu, Telangana, and Chhattisgarh recorded the highest fatality rates, with 21.9, 19.2, and 17.6 deaths per 100,000 people, respectively, while West Bengal and Bihar had the lowest rates, at 5.9 per 100,000. Six states—Uttar Pradesh, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, and Tamil Nadu—accounted for almost half of all road fatalities in India.
The report also notes that pedestrians, cyclists, and motorized two-wheeler riders are the most frequent victims of road accidents, while trucks are responsible for the majority of collisions. Despite the proven effectiveness of helmets in reducing fatalities, helmet usage among motorized two-wheeler riders exceeds 50% in only seven states. Additionally, many states lag in basic road safety measures, such as proper signage, road markings, and traffic calming techniques. Rural areas suffer from low helmet usage and inadequate trauma care facilities, necessitating region-specific strategies to address these issues.
Global Comparison and India’s Road Safety Challenges
When compared to developed nations like Sweden and other Scandinavian countries that have excelled in road safety, India fares poorly. In 1990, an Indian was 40% more likely to die in a road accident than a person in these countries; by 2021, this disparity had increased to 600%, highlighting the sharp rise in road fatalities. The report questions whether better vehicle safety features alone can address this issue, as two-wheeler riders and cyclists constitute the majority of road fatalities.
The Path Forward
The report calls for central and state governments to scale up road safety initiatives. Establishing a national database for fatal crashes would provide crucial insights into the risks faced by road users and the effectiveness of various interventions across states. Public access to this data could further improve road safety measures and policy implementation
After a strong start to goods exports in the first quarter of 2024-25, momentum has slowed down. Export values dropped by 1.5% in July, hitting an eight-month low, and the decline worsened to 9.3% in August. This decline coincided with a record-high import bill of $64.4 billion in August, resulting in a merchandise trade deficit of $29.7 billion, the second largest after the $29.9 billion gap in October 2023.
Reasons for the widening trade deficit:
- Although exports have declined over the past two months, imports have not followed suit, increasing by 7.5% in July and 3.3% in August. This pushed the trade deficit to a nine-month high of $23.5 billion in July, widening further by $6.2 billion in August.
- While several of India’s top export sectors, such as petroleum and gems and jewellery, experienced significant drops (oil exports fell by 22.2% in July and 37.6% in August, and jewellery exports shrank by over 20% in both months), imports continued to rise.
- In August, slower growth in sectors like pharmaceuticals and electronics was observed. Additionally, with the slowdown in China’s economy, exports of certain goods such as stone, cement, and iron ore declined.
- However, as oil prices fell by $6 per barrel in August, India’s oil import bill dropped by a third to $11 billion, bringing the petroleum deficit to a three-year low, as noted by QuantEco Research economists.
- “The widening trade deficit was mainly driven by gems and jewellery, alongside smaller contributions from miscellaneous products and electronics,” the economists noted.
- While exports of gems and jewellery fell below $2 billion, India’s gold imports more than doubled in August to an unprecedented $10.1 billion.
- This contrasts with a 10.7% drop in gold imports in July and the $3 billion to $3.4 billion range seen since April. Trade officials attributed the surge to a reduction in the gold import duty from 15% to 6% in the Budget, rising gold prices, and jewellers stocking up for the festive season. Economists predict that the full effect of duty cuts on gold and other items will continue to impact the import bill in the coming months.
Could a wider trade deficit pose risks?
- “For a developing economy with high growth, the trade deficit should not be concerning as long as there are no foreign exchange issues,”
- Foreign capital inflows have remained positive in recent months, and India’s foreign exchange reserves reached a record $675 billion as of August 2, which the Finance Ministry noted is enough to cover 11.6 months of imports.
- Although this coverage may decrease if imports stay above $60 billion, strong services exports, which increased by over 10% from April to August, offer some reassurance.
What about foreign trade in goods?
While global trade is expected to grow faster in 2024 compared to 2023, demand remains weak in most developed markets. In addition to geopolitical tensions, the upcoming U.S. elections and increased tariffs on Chinese goods, coupled with China’s struggling domestic economy, pose challenges for countries like India.
As China's import demand weakens, it may seek to offload products in non-U.S. markets at lower prices. Furthermore, these factors are likely to keep oil prices down, negatively impacting India’s oil exports. Overall, concerns about global demand are increasing, and although India aims to increase goods and services exports to a trillion dollars each by 2030, the path forward will likely be challenging
1.The term "Twin Deficit" in the context of an economy refers to which of the following?
- Fiscal deficit and Revenue deficit
- Fiscal deficit and Current account deficit
- Trade deficit and Revenue deficit
- Trade deficit and Primary deficit
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) 3 only
(d) 4 only
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Answer (b)
The Twin Deficit refers to a situation where a country is facing both a fiscal deficit and a current account deficit. A fiscal deficit occurs when the government's total expenditures exceed the revenue that it generates, excluding money from borrowings. A current account deficit occurs when a country imports more goods, services, and capital than it exports. Both these deficits together can signify deeper economic issues, such as unsustainable borrowing or low competitiveness in international trade
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| Subject | Topic | Description |
| History | Modern Indian History | Company rule and Crown rule 1773 - 1947 |
| History | Modern Indian History | Fall of Mughals |
| History | Modern Indian History | Establishment of British rule in India |
| History | Modern Indian History | Economic Policies of the British |
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