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Power Purchasing Parity (PPP) and Total Fertility Rate (TFR), Olive Ridley Turtle and its significance for the UPSC Exam? Why are topics like End of TB, Joint Parliamentary Committee (JPC) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for april 01, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on April 01, 2025
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The impacts of rupee weakening
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS III - Indian Economy
Context:
The sharp devaluation of the Indian rupee is driven by capital outflows, higher import costs, and a policy shift by the RBI; structural issues such as rising domestic prices and real exchange rate appreciation further complicate the recovery of net exports
Read about:
Power Purchasing Parity (PPP)
Foreign Exchange Management Act (FEMA)
Key takeaways:
The Indian rupee has recently experienced a significant devaluation against the US dollar, following a period of relative stability for over two years. What are the underlying reasons for this shift, and what implications does it hold? This discussion explores India’s exchange rate policy and highlights key structural challenges within the Indian economy in recent years.
Exchange Rate Frameworks
The nominal exchange rate represents the cost of acquiring one unit of foreign currency in terms of the domestic currency. Changes in the nominal exchange rate are influenced by the interplay between supply and demand in the foreign exchange market and the central bank’s exchange rate policy.
The real exchange rate reflects the relative cost of foreign goods in terms of domestic goods, taking into account price levels. It indicates the comparative affordability of domestic goods against foreign ones.
The demand and supply in the foreign exchange market are shaped by the flows in the current and capital accounts. A decline in the combined net flows of these accounts increases the demand for foreign currency, while an increase in net flows boosts its supply. Net current account flows are largely determined by net exports, whereas capital account flows depend on foreign investment inflows and outflows. Reduced net exports and greater capital outflows increase the demand for foreign currency and vice versa.
Central bank responses to market conditions define three primary exchange rate regimes: fixed, floating, and managed-floating.
- Fixed Exchange Rate: The central bank offsets higher foreign currency demand by selling foreign exchange reserves to maintain a fixed nominal exchange rate.
- Floating Exchange Rate: The central bank allows the currency to devalue to meet increased foreign currency demand, keeping reserves unaffected.
- Managed-Floating Exchange Rate: The central bank combines selling reserves and allowing devaluation to address higher demand.
India has predominantly followed a managed-floating exchange rate system over the last three decades. In the 2010s, the Reserve Bank of India (RBI) adopted a nuanced approach under this regime.
During periods of excess demand, it devalued the rupee and reduced foreign exchange reserves. Conversely, during excess supply, the RBI resisted nominal exchange rate appreciation by accumulating reserves to safeguard export competitiveness. This asymmetric policy resulted in a gradual rupee devaluation throughout the decade.
Post-COVID, particularly between late 2022 and November 2024, the RBI temporarily adopted a policy resembling a fixed exchange rate regime, maintaining a stable nominal exchange rate despite current account deficits and capital outflows by selling foreign reserves. However, the recent sharp rupee devaluation suggests a return to the managed-floating regime, driven by capital outflows, increased imports, and rising crude oil prices. This strategy aims to reduce pressure on foreign reserves by permitting rupee depreciation.
Consequences of Devaluation
A nominal exchange rate depreciation can have dual macroeconomic effects—favorable and adverse. The positive impact stems from the real exchange rate mechanism, while the negative effect arises from domestic price dynamics.
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Boosting Net Exports: Depreciation makes domestic goods cheaper relative to foreign goods, potentially enhancing net exports and economic output. For this to occur, two conditions must be met: net exports should respond positively to changes in the real exchange rate, and nominal depreciation must lead to real exchange rate depreciation. A rise in domestic prices at a constant nominal rate negates the benefit by making domestic goods costlier, while nominal depreciation at stable domestic prices enhances competitiveness.
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Rising Domestic Prices: Depreciation can inflate domestic prices by increasing firms' variable costs, particularly for imported raw materials. In markets with limited competition, businesses often adjust prices by marking up their variable costs, which rise with higher import costs. Consequently, this cost escalation is passed on to consumers, driving up domestic prices
Recent Challenges
- Since the mid-2010s, particularly from 2019 onward, a significant divergence has emerged between India’s nominal and real exchange rates. These rates represent the weighted average exchange rate of India with its various trading partners.
- According to their definitions, an increase (or positive change) in these indices indicates an appreciation, while a decrease (or negative change) signifies depreciation.
- While these indices moved in tandem until the mid-2010s, they began diverging thereafter, with the real exchange rate appreciating even as the nominal exchange rate depreciated. This trend sets India apart from most other countries.
- In this context, the horizontal and vertical axes represent the changes in the Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER), respectively, between January 2019 and November 2024.
- The vertical zero line denotes no change in the NEER, while the horizontal zero line indicates no change in the REER
1.Which one of the following groups of items is included in India’s foreign-exchange reserves? (UPSC CSE 2013)
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
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Answer (b)
India's foreign-exchange reserves consist of the following components:
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Why are fertility levels declining in India?
For Preliminary Examination: Total Fertility Rate (TFR), Child Mortality
For Mains Examination: GS III - Science & Technology
Context:
A comprehensive demographic analysis of global fertility in 204 countries and territories from 1950-2021 has found that fertility is declining globally and that future fertility rates will continue to decline worldwide, remaining low even under successful implementations of pro-natal policies.
Read about:
Total fertility rate (TFR)
Infant mortality rate
Key takeaways:
India's Fertility Trends
- The Global Burden of Diseases, Injuries, and Risk Factors Study (GBD) 2021 highlights India’s transition from a fertility rate of 6.18 in the 1950s to a Total Fertility Rate (TFR) of 1.9 in 2021, which is below the replacement level of 2.1 (the threshold needed for population stability). The study further predicts that India's TFR could drop to 1.04 by 2100, equating to barely one child per woman.
- This sharp decline has raised concerns about the political and socio-economic consequences, particularly in southern states, which may face a reduction in parliamentary representation following the 2026 delimitation exercise.
Reasons for Fertility Decline
- Although India has a long-standing family planning program, other factors appear to have contributed significantly to the reduction in fertility rates. These include rising female literacy, increased workforce participation among women, greater empowerment, and changing aspirations.
- Societal attitudes towards marriage and reproduction have also shifted, with many women choosing to marry later, remain single, or prioritize careers and financial independence over motherhood.
- Additional contributing factors include increasing infertility rates, abortion rates, and migration, as many young Indians move abroad for education and employment, opting to settle and raise families elsewhere.
Implications of Declining Fertility
The decline in fertility has led to a demographic shift, particularly in southern states, where an aging population, shrinking youth workforce, and increased healthcare and social security demands are becoming significant challenges. States like Kerala are experiencing the effects acutely, with a rising elderly population and high rates of youth migration.
Trends in Southern States
- Southern states, which achieved replacement-level fertility earlier than the rest of India, are witnessing irreversible fertility declines. Kerala, for instance, reached replacement fertility in 1988, with other southern states following suit by the mid-2000s.
- Factors such as improved education, women's empowerment, and advancements in social and healthcare sectors contributed to this transition.
- However, Kerala’s economic growth has been limited, prompting educated youth to migrate in search of better opportunities.
- By 2036, Kerala's elderly population is expected to surpass its child population, further straining healthcare systems.
- In response to workforce shortages, Kerala has attracted migrant labor from other states. By 2030, migrant workers could comprise nearly one-sixth of the state’s population, according to estimates by the State Planning Board.
Recommendations
- Fertility decline is generally irreversible, as evidenced by countries like South Korea, where extensive financial efforts to boost fertility have failed, with the rate dropping from 0.78 in 2022 to 0.73 in 2023.
- To mitigate the impact of low fertility, demographers recommend socio-economic policies that stimulate economic growth, enhance job opportunities for youth, and leverage the potential of a growing elderly population. These strategies can help offset the long-term effects of sustained sub-replacement fertility rates
The fertility rate is a demographic measure that represents the average number of children a woman is expected to have during her lifetime, based on current birth rates and age-specific fertility rates in a given population.
Key Variants of Fertility Rate:
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Total Fertility Rate (TFR):
This is the most commonly used measure and estimates the average number of children a woman would bear if she experiences the current age-specific fertility rates throughout her reproductive years (typically ages 15-49). -
Replacement Fertility Rate:
This refers to the fertility level needed to ensure that a population replaces itself from one generation to the next, without migration. For most populations, this rate is approximately 2.1 children per woman. The extra 0.1 accounts for child mortality and other factors. -
Crude Birth Rate (CBR):
This is the number of live births per 1,000 people in a population in a given year, but it is less precise than TFR as it doesn't account for the age distribution of the population
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Answer (C)
The Total Fertility Rate (TFR) is a demographic indicator that estimates the average number of children a woman is expected to have during her lifetime, based on the current age-specific fertility rates of a population. It is a key measure for assessing population growth or decline
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For Preliminary Examination: IUCN Red list, Vulnerable species
For Mains Examination: GS III - Environment & ecology
Context:
Over the past two weeks, numerous dead olive ridley turtles have washed ashore in Tamil Nadu, particularly in Chennai. Experts have estimated that so far, between 300 and 350 turtles have been found dead.
Read about:
Habitat of Olive ridley Turtles
Threats to Olive ridley Turtles
Key takeaways:
- Olive ridley turtles begin appearing near the Tamil Nadu coast around September and October for breeding, with their nesting season spanning from late November to March.
- While turtle mortalities during this time are not unusual, the discovery of numerous carcasses so early in the season has raised concerns among conservationists and local residents.
- According to officials from the Tamil Nadu Forest Department, precise data on the deaths is still being compiled. Reports of similar incidents have also come from Pulicat in Thiruvallur district, located north of Chennai.
- Discovering olive ridley carcasses during their mating season is a common occurrence. These turtles mate in nearshore waters, and females arrive in small groups to nest on Tamil Nadu’s beaches.
- However, they often fall victim to bycatch, becoming unintentionally trapped in the fishing nets of commercial trawlers, leading to their deaths, as experts point out. Olive ridley turtles lay eggs along the coastlines of multiple Indian states, with mass nesting concentrated in Odisha, followed by Andhra Pradesh and Tamil Nadu.
- In Odisha, beaches like Gahirmatha and Rushikulya host the arrival of hundreds of thousands of female olive ridleys annually. Using their flippers, the turtles create nests in the sand and lay between 100 and 110 eggs in each. They then cover the nests with sand to protect them from predators before returning to the sea.
- After about 45-60 days, thousands of hatchlings emerge and head toward the ocean. At nesting sites where disturbances from humans or predators are likely, Forest Departments establish hatcheries.
- Eggs are carefully collected from the nests and placed in these protected environments. Once the eggs hatch, the juvenile turtles are released near the sea to ensure their survival
(a) Saltwater crocodile
(b) Olive ridley turtle
(c) Gangetic dolphin
(d) Gharial
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Answer (b)
The Gangetic dolphin (Platanista gangetica), also known as the South Asian river dolphin, was declared the National Aquatic Animal of India in 2009. This designation highlights its ecological importance and the need for conservation. Below are some key points about the Gangetic dolphin: Significance:
Characteristics:
Conservation efforts:
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India’s winding road to ‘#EndTB’
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS II - Governance
Read about:
Drug-Resistant TB
World TB Day
Key takeaways:
- Last year, tuberculosis (TB) once again became the leading cause of infectious disease-related deaths worldwide. The ambitious "End TB" goals, aiming for a 90% reduction in TB-related deaths, an 80% reduction in new TB cases, and the elimination of catastrophic costs for families affected by TB by 2030, seem increasingly out of reach. In 2018, India committed to achieving these targets by 2025, with accelerated efforts. However, the COVID-19 pandemic has severely hindered progress.
- The World Health Organization's 2024 Global Tuberculosis Report highlights India as the nation with the highest TB burden, accounting for 26% of global cases, and also as a central hub for drug-resistant TB (DR-TB) and TB-related deaths.
- While the government has rolled out numerous policies and initiatives to tackle TB at the national level, it is critical to understand the on-the-ground challenges in India to ensure that these initiatives lead to effective interventions.
Addressing Vulnerable Groups
- India’s National Tuberculosis Elimination Programme (NTEP) has identified high-risk groups that are more likely to contract TB and experience severe outcomes. Dr. Pavitra Mohan, a pediatrician and founder of Basic Healthcare Services, an NGO working in rural Rajasthan, states that her clinics see around 1,000 TB patients annually.
- Many of these individuals suffer from severe lung damage due to inhaling fine dust in mining and stone carving industries. Factors such as silicosis, malnutrition, overcrowding, and unmanaged co-morbidities like diabetes further increase their risk of contracting TB.
- Migrant workers, who face poor access to healthcare, also struggle with treatment adherence, as they often return to their home regions when ill, complicating the healthcare system's ability to track their progress.
- While much focus is being placed on addressing malnutrition among TB patients, other contributing factors—specific to each region—need to be tackled, requiring a multi-sectoral approach.
- TB is a curable disease, and NTEP provides effective, free treatments. India has achieved a notable milestone in initiating treatment for over 95% of notified cases, thanks to the establishment of a dedicated procurement and supply chain system for the NTEP.
- However, in 2023, a nationwide disruption in the supply chain has led to continued shortages of essential medicines in many parts of the country. This shortage has caused significant distress for patients, many of whom have to buy drugs from external sources, resulting in catastrophic health-related expenses.
- Nandita Venkatesan, a data journalist and two-time TB survivor, highlights the severe consequences of treatment interruptions. Such disruptions risk the development of drug-resistant TB and contribute to poor health outcomes.
Challenges with Extrapulmonary TB
- Extrapulmonary TB (EP-TB), which affects organs outside the lungs, such as lymph nodes, kidneys, brain, spine, bones, joints, and skin, poses additional challenges. The NTEP primarily focuses on pulmonary TB, as it is the most common and contagious form.
- However, EP-TB accounts for about 24% of all TB cases, with substantial geographical variation. EP-TB is often delayed or missed in diagnosis due to its non-specific symptoms, which can resemble other illnesses.
- Simple tests, like pus staining from non-healing ulcers, can aid in diagnosing TB, but advanced diagnostic tests are often delayed, contributing to substantial treatment delays and progression of the disease.
- Additionally, frequent updates to TB treatment guidelines are hindered by a shortage of adequately trained healthcare professionals. Dr. Vasundhara Rangaswamy, a microbiologist in rural Chhattisgarh, notes that molecular tests, though crucial for accurate diagnosis, are costly and time-consuming.
- These tests are generally available only at the district level, and the heavy workload and lack of trained staff lead to delays in obtaining results. This forces patients to travel long distances, incurring additional costs.
What Needs to Be Done
- For the NTEP to be successful, it is vital that ownership and accountability are embraced at all levels of the system. An example of successful implementation comes from Idukki district in Kerala, where the local administration collaborated with Kudumbashree, a large women’s self-help network, to combat TB.
- This collaboration resulted in widespread community engagement, and the advocacy from both government and leadership levels created a significant impact. The success in Kerala shows that with active participation, clear leadership, and a focus on local needs, TB elimination goals can be better achieved and sustained
Follow Up Question
1. Read the following passages and answer the question, your answers to these items should be based on the passages only.
A majority of the TB infected in India are poor and lack sufficient nutrition, suitable housing and have little understanding of prevention. TB then devastates families, makes the poor poorer, particularly affects women and children, and leads to ostracisation and loss of employment. The truth is that even if TB does not kill them, hunger and poverty will. Another truth is that deep-seated stigma, lack of counselling, expensive treatment and lack of adequate support from providers and family, coupled with torturous side-effects demotivate patients to continue treatment - with disastrous health consequences.
Which one of the following is the most logical, rational and crucial message conveyed by the above passage? (UPSC 2019)
- TB is not a curable disease in Indian circumstances.
- Curing TB requires more than diagnosis and medical treatment.
- Government's surveillance mechanism is deficient, and poor people have no access of treatment.
- India will be free from diseases like TB only when its poverty alleviation programmes are effectively and successfully implemented.
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Answer (2)
The most logical, rational, and crucial message conveyed by the passage is: Curing TB requires more than diagnosis and medical treatment. The passage highlights how TB, while treatable, continues to affect people due to poor living conditions, inadequate nutrition, stigma, lack of counseling, and other socio-economic challenges. It emphasizes that overcoming TB requires addressing these factors alongside medical treatment |
JPC rejects all amendments to Waqf Bill made by Opposition
For Preliminary Examination: Joint Parliamentary Committee (JPC), Leader of Opposition (LoP)
For Mains Examination: GS II - Indian Polity & Governance
Context:
Parliamentary panel accepts 32 amendments moved by BJP and its allies; Opposition MPs issue joint statement claiming no discussion clause by clause was permitted by the Chairperson; the committee will meet tomorrow to finalise the report
Read about:
Significance of JPC
Parliamentary Proceedings on Bills
Key takeaways:
- A Joint Parliamentary Committee (JPC) is a specialized committee established by the Indian Parliament to investigate and examine specific issues or subjects of national importance.
- It serves as an instrument for detailed deliberations on complex matters that require thorough scrutiny, often beyond the scope of regular parliamentary proceedings. The formation of a JPC reflects the seriousness of the issue at hand and the need for bipartisan cooperation to address it effectively.
- A JPC is constituted when either House of Parliament passes a resolution or the government announces its formation. Its members are drawn from both the Lok Sabha and the Rajya Sabha, with representation proportionate to the strength of political parties in these houses. This ensures that the committee reflects a broad spectrum of political viewpoints.
- The primary role of a JPC is investigative. It examines issues such as alleged financial irregularities, major policy failures, or lapses in governance. Members are empowered to summon witnesses, request documents, and gather evidence, making their inquiries comprehensive and authoritative. For instance, JPCs in the past have been tasked with investigating scams such as the Bofors arms deal, the securities scam of 1992, and the 2G spectrum allocation case.
- Once the investigation is complete, the JPC submits its findings in a detailed report to Parliament. The report typically includes recommendations for policy changes, accountability measures, and steps to prevent similar occurrences in the future. While these recommendations are not binding, they hold significant moral and political weight, often prompting the government to take corrective action.
- The effectiveness of a JPC depends on several factors, including the commitment of its members, the depth of its investigation, and the willingness of the government to act on its recommendations. However, critics sometimes argue that JPCs can become platforms for political point-scoring, potentially diluting their focus on the issue under scrutiny.
- In summary, the JPC is an essential mechanism within the Indian parliamentary system, designed to ensure accountability, transparency, and thorough investigation of issues that affect the public and the nation. Its purpose is to strengthen democratic processes by fostering informed debate and holding those in power accountable
Additional Information
- The Opposition proposed amendments to all 44 clauses of the Bill, specifically advocating for the deletion of 28 clauses to revert the law to its original form under the 1995 principal Act. Among their objections was the establishment of separate Waqf Boards for the Aghakhani and Bohra sects.
- They also sought to remove Clause 9, which allows the inclusion of two non-Muslim members in the Central Waqf Council. Additionally, all 11 Opposition MPs proposed eliminating Clause 40, which seeks to remove the provision permitting non-Muslims to donate property to Waqf under the original Act.
- One of the primary points of contention was the inclusion of non-Muslims on the Waqf Board. The panel accepted an amendment addressing this concern, stating that “two of the total members of the Board appointed under this sub-section, excluding ex-officio members, shall be non-Muslim.”
- The phrase “excluding ex-officio members” was absent in the original Bill. According to sources, this amendment could enable the Board to include up to four non-Muslim members instead of two.
- In a joint statement, 11 Opposition panel members expressed dissatisfaction, claiming they were “prevented from presenting their views on the amendment” and that no clause-by-clause discussion was allowed by the chairman.
- They further alleged that 95% of stakeholders who appeared before the panel opposed the Bill.
- The Opposition criticized the process as a “grave departure” from established norms, pointing out that minutes of the meetings held in Delhi and elsewhere were not shared with members.
- They concluded by stating that their efforts to uphold constitutional protections for minorities were being undermined
1.Which of the following statements regarding the Joint Parliamentary Committee (JPC) in India is/are correct?
- A JPC is constituted by a resolution passed by one House of Parliament or by both Houses.
- The recommendations made by a JPC are binding on the government.
- The membership of a JPC includes members from both the Lok Sabha and the Rajya Sabha in proportion to their party strength in Parliament.
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2, and 3
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Answer (b)
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| Subject | Topic | Description |
| Polity | Centre and State relations | Centre State and interstate relations |
| Environment & Ecology | Marine Ecosystem | Marine Ecosystem |
| Economy | Consumer Rights | Consumer Rights |
| Ancient History | Buddhism | Buddhism |
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