FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT (FRBM) ACT
Kerala faces significant fiscal stress, meaning its government struggles to meet its expenditure with its revenue.
- High fiscal deficit: Kerala has a high fiscal deficit, which is the difference between its revenue and expenditure. This indicates the government spends more than it earns, requiring borrowing to bridge the gap.
- Debt burden: The state has a high debt-to-GDP ratio, which is the total debt compared to the size of its economy. This increasing debt burden raises concerns about future repayment ability and limits spending on essential services.
- Limited revenue generation: While Kerala's tax effort (ratio of tax collected to GDP) is considered above average, it still struggles to generate enough revenue to meet its needs.
- Causes: Several factors contribute to Kerala's fiscal stress, including:
- High social welfare spending: The state prioritises social programs, leading to high expenditure on healthcare, education, and pensions.
- Stagnant economic growth: Limited economic diversification and a slowdown in some sectors restrict revenue growth.
- Dependence on central government transfers: Kerala relies heavily on financial assistance from the central government, making it vulnerable to fluctuations in central transfers.
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Impacts: Fiscal stress can have negative consequences for Kerala's development:
- Limited investment in infrastructure: Reduced funds for infrastructure projects like roads, bridges, and power plants can hinder economic growth.
- Crowding out private investment: High government borrowing might compete with private sector borrowing, limiting investment opportunities.
- Reduced service delivery: Fiscal stress can impact the quality and accessibility of public services like healthcare and education.
Current Situation
- Kerala is categorised as one of the five most indebted states in India by the Reserve Bank of India (RBI).
- The debate continues how to address the issue. Some advocate for stricter fiscal discipline and exploring new revenue sources. Others emphasise the need for increased central government support and economic reforms to boost revenue generation.
- Article 293 (1) empowers states to borrow money for their functioning, but with limitations set by their respective legislatures. This ensures responsible borrowing and prevents excessive debt accumulation by state governments.
- Article 293 (2) allows the Central Government to provide loans to state governments.
- Article 293 (3) restricts states from raising loans without the Central Government's consent if they already have outstanding loans or guarantees from the Central Government. This provision aims to ensure states manage their finances responsibly and avoid excessive debt.
- Article 293 (4) A consent under clause (3) may be granted subject to such conditions, if any, as the Government of India may think fit to impose.
The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) is a crucial piece of legislation in India that aims to achieve fiscal discipline by the government.
Objectives
- Reduce India's fiscal deficit: The act sets targets for the government to gradually bring down the fiscal deficit, which is the gap between its revenue and expenditure.
- Improve macroeconomic management: By ensuring responsible borrowing and spending, the FRBM Act aims to promote economic stability and growth.
- Enhance transparency in fiscal operations: The act mandates the government to present medium-term fiscal policy statements, promoting greater transparency in budgeting and debt management.
Key Provisions
- Fiscal deficit targets: The act originally laid out a roadmap for reducing the fiscal deficit to 3% of GDP (Gross Domestic Product) by March 2008. This target has been revised over time.
- Fiscal policy statements: The government is required to present three statements to the Parliament along with the annual budget
- Medium-Term Fiscal Policy Statement (MTFPS) outlines the fiscal roadmap for the next three years, including revenue and expenditure projections.
- The Fiscal Policy Strategy Statement (FPSS) document focuses on the medium-term fiscal strategy for achieving the deficit targets.
- Macroeconomic Framework Statement (MFS) statement presents the government's assessment of the overall economic situation and its implications for fiscal policy.
- Fiscal responsibility rules: The act empowers the government to frame rules for achieving the fiscal deficit targets. These rules may specify measures for curtailing expenditure, improving revenue collection, and managing public debt.
Criticisms and Challenges
- Balancing fiscal discipline with growth: Critics argue that a rigid focus on deficit reduction might hinder government spending on essential sectors, impacting economic growth.
- Achieving targets: The government has not always been able to meet the stipulated deficit targets due to various factors like economic slowdowns or unforeseen circumstances.
- Flexibility: Debates exist regarding the need for flexibility in the act to accommodate economic emergencies or unforeseen circumstances.
Significance
Despite the challenges, the FRBM Act has played a significant role in promoting fiscal discipline and transparency in India's public finances. It has helped to:
- Reduce the fiscal deficit over time, leading to greater macroeconomic stability.
- Increase awareness of fiscal issues and promote public debate on budgetary matters.
- Provide a framework for medium-term fiscal planning and debt management.
States in India can sometimes borrow beyond the FRBM (Fiscal Responsibility and Budget Management) Act limits but with some restrictions.
FRBM Act and Borrowing Limits: The FRBM Act sets targets for the government to gradually reduce the fiscal deficit (the gap between revenue and expenditure). These targets apply to both the central government and state governments.
Exceptions for States
- Legislative Flexibility: State legislatures can set their own borrowing limits within the FRBM framework. This allows some flexibility for states based on their specific circumstances.
- Central Government Loans: Article 293 (2) of the Indian Constitution allows the Central Government to provide loans to state governments. In critical situations, the central government might offer loans exceeding the FRBM limits to support states.
- Natural Disasters and Emergencies: In unforeseen circumstances like natural disasters or national emergencies, states may be allowed to borrow beyond the FRBM limits to meet immediate needs. However, this usually requires approval from the central government.
Restrictions on Borrowing Beyond Limits
- Article 293 (3) of the Constitution: This provision restricts states from raising loans without the central government's consent if they already have outstanding loans or guarantees from the central government. This discourages excessive borrowing and ensures some level of control.
- Loan Conditions: The central government may impose conditions on loans exceeding FRBM limits. These conditions could involve stricter fiscal discipline measures or reforms from the state government.
These recommendations are typically part of fiscal discipline measures to ensure responsible borrowing and debt management by state governments.
- 2021-22: 4% of GSDP: This recommendation implies that for the fiscal year 2021-22, state governments are advised to keep their net borrowing within 4% of their respective Gross State Domestic Product. This limit serves as a guideline to prevent excessive borrowing that could strain state finances.
- 2022-23: 3.5% of GSDP: For the following fiscal year 2022-23, the recommended net borrowing limit is lowered to 3.5% of GSDP. This reduction indicates a gradual tightening of fiscal discipline, aiming to curb borrowing and promote fiscal sustainability.
- 2023-24 to 2025-26: 3% of GSDP: The subsequent years from 2023-24 to 2025-26 see a further reduction in the recommended net borrowing limit to 3% of GSDP. This signifies a sustained effort to limit state borrowing and manage public debt within manageable levels relative to the state's economic output.
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For Prelims: Kerala, Fiscal Responsibility and Budget Management Act, Article 293, GSDP, Reserve Bank of India
For Mains:
1. Explain the constitutional provisions related to states' borrowing powers as outlined in Article 293 of the Indian Constitution. How do these provisions ensure responsible borrowing and prevent excessive debt accumulation by state governments? (250 Words)
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Previous Year Questions
1. With reference to the Indian economy, consider the following statements: (UPSC 2022)
1. An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Which of the above statements are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. With reference to Indian economy, consider the following statements: (UPSC 2015) 1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
3. Consider the following statements: (UPSC 2018)
1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
4. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR? (UPSC 2016)
A. Rouble
B. Rand
C. Indian Rupee
D. Renminbi
5. Rapid Financing Instruments" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following? (UPSC 2022)
A. Asian Development Bank
B. International Monetary Fund
C. United Nations Environment Programme
D. Finance Initiative World Bank
6. With reference to Indian economy, consider the following statements: (UPSC CSE, 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade. 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 7. A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC CSE, 2015) 1. Slowing economic growth rate 2. Less equitable distribution of national income Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answers: 1-C, 2-B, 3-C, 4-D, 5-B, 6-B, 7-A
Mains
1. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC 2020) 2. Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC 2021) |
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)
1. Context
2. About the National Level Monitoring (NLM) report
- The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
- The report is based on field visits and interviews with stakeholders at the grassroots level.
- The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
- The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.
The NLM report typically identifies the following areas:
- The coverage of rural development programs
- The quality of implementation of rural development programs
- The impact of rural development programs on the lives of rural people
The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.
3. The findings of the NLM report
- In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
- In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
- In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
- The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
- The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.
4.1. Mandate and Goals
- The mandate of MGNREGA is to provide employment and ensure food security for rural households.
- The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
- The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity.
4.2. Core Objectives
- The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
- MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
- The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.
4.3. Key Stakeholders
- Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
- Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
- The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
- The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
- Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.
4.4. Role of Gram Sabha and Gram Panchayat
- The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
- The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.
4.5. Issues with MGNREGA
- Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
- There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
- Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
- Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
- Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
- Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.
5. Conclusion
MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.
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For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),
For Mains:
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
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Previous Year Questions
Prelims
1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: B 5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
Answer: A
Mains
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
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FOREIGN DIRECT INVESTMENT (FDI)
- India's net foreign direct investment (FDI) inflows experienced a decline, decreasing by nearly 31% to $25.5 billion during the first 10 months of the 2023-24 fiscal year. The Finance Ministry attributed this decline to a broader trend of slowing investments in developing countries, while expressing optimism for a potential increase in investments in the current calendar year.
- Although global FDI flows overall saw a 3% rise to approximately $1.4 trillion in 2023, economic uncertainty and elevated interest rates impacted global investment, resulting in a 9% decrease in FDI flows to developing nations, as outlined in the Ministry's February assessment of economic performance.
- Reflecting the global trend of reduced FDI flows to developing countries, gross FDI inflows to India also experienced a slight decline, from $61.7 billion to $59.5 billion during the period from April 2023 to January 2024. In terms of net inflows, the corresponding figures were $25.5 billion versus $36.8 billion. The decrease in net inflows was primarily attributed to an increase in repatriation, while the decline in gross inflows was minimal.
- While a modest uptick in global FDI flows is anticipated for the current calendar year, attributed to a decrease in inflation and borrowing costs in major markets that could stabilize financing conditions for international investment, significant risks persist, according to the Ministry. These risks include geopolitical tensions, elevated debt levels in numerous countries, and concerns regarding further fragmentation of the global economy
- FDI involves the transfer of funds and resources from one country to another. This capital inflow can help stimulate economic growth in the host country by providing funds for investment in infrastructure, technology, and other areas.
- FDI often leads to the creation of jobs in the host country. When foreign companies establish subsidiaries or invest in existing businesses, they typically hire local employees, which can help reduce unemployment and improve living standards
- Foreign investors often bring advanced technologies, processes, and management practices to the host country. This technology transfer can enhance the host country's productivity, competitiveness, and industrial capabilities
- FDI can provide access to new markets for both the host country and the investing company. Foreign investors can tap into the host country's consumer base, while the host country gains access to the investing company's global distribution networks.
- FDI can contribute to overall economic development in the host country by promoting industrialization, improving infrastructure, and fostering innovation and entrepreneurship.
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Automatic Route: Under the automatic route, FDI is allowed without the need for prior approval from the RBI or the government. Investors only need to notify the RBI within a specified time frame after the investment is made. This route is available for most sectors, except those that are prohibited or require government approval.
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Government Route: In sectors or activities that are not covered under the automatic route, FDI requires government approval. Investors must apply for approval through the Foreign Investment Facilitation Portal (FIFP) or the Foreign Investment Promotion Board (FIPB), depending on the sector.
- Under the automatic route, FDI of up to 100% is allowed for manufacturing of automobiles and components.
- For the manufacturing of electric vehicles (EVs), 100% FDI is allowed under the automatic route.
- In single-brand retail trading, 100% FDI is allowed, with up to 49% allowed under the automatic route. Beyond 49%, government approval is required.
- Multi-brand retail trading (supermarkets and department stores) with FDI is permitted in some states, subject to certain conditions and restrictions. The FDI limit is typically capped at 51%.
- FDI in the insurance sector is allowed up to 74%, with up to 49% under the automatic route. Beyond 49%, government approval is needed
- In the telecom sector, 100% FDI is allowed, with up to 49% under the automatic route. Beyond 49%, government approval is required
- In the defense sector, FDI up to 74% is allowed under the automatic route, with government approval required for investments beyond 49%
- In most segments of the media and broadcasting sector, including print and digital media, 100% FDI is allowed, with up to 49% under the automatic route
- FDI is prohibited in the atomic energy sector, which includes activities related to the production of atomic energy and nuclear power generation.
- FDI is generally prohibited in the gambling and betting industry, which includes casinos and online betting platforms
- FDI is not allowed in the lottery business, except for state-run lotteries
- FDI is prohibited in chit funds, which are traditional Indian savings and credit schemes.
- Nidhi companies are non-banking finance companies (NBFCs) that facilitate mutual benefit funds. FDI is typically not permitted in these entities
- While FDI is allowed in single-brand retail trading, it is generally prohibited in multi-brand retail trading of agricultural products. Some states have allowed it under specific conditions, but this remains a highly regulated area.
- FDI is not allowed in the trading of transferable development rights (TDRs) pertaining to the construction of real estate
- FPIs invest in a country's financial markets, primarily by buying and selling securities traded on stock exchanges and fixed-income instruments like bonds and government securities
- FPIs often seek to diversify their investment portfolios by spreading their investments across different asset classes, sectors, and countries. This diversification helps manage risk and enhance returns
- FPIs have the flexibility to buy and sell securities in the secondary market, providing liquidity to the market and contributing to price discovery
- FPIs typically have a shorter investment horizon compared to Foreign Direct Investors (FDIs). They may engage in short-term trading or hold securities for a few months to a few years.
- FPIs are subject to regulatory frameworks and restrictions in the countries where they invest. These regulations are designed to ensure that foreign investments do not pose undue risks to the local financial markets and economy.
| FPI (Foreign Portfolio Investment) | FDI (Foreign Direct Investment) |
| FPI involves the purchase of financial assets such as stocks, bonds, mutual funds, and other securities in a foreign country. These investments are typically made with the intention of earning returns on capital and do not result in significant control or ownership of the underlying businesses | FDI entails making an investment in a foreign country with the primary objective of establishing a lasting interest and significant control or influence over a business enterprise or physical assets. FDI often involves the acquisition of a substantial ownership stake (typically at least 10%) in a company or the establishment of new business operations. |
| FPI is generally characterized by a shorter investment horizon. Investors in FPI may engage in trading and portfolio rebalancing activities, and their investments are often more liquid. The focus is on earning capital gains and income from investments. | FDI is characterized by a longer-term commitment. Investors in FDI intend to engage in the day-to-day management or decision-making of the business, contribute to its growth and development, and generate profits over an extended period. |
| FPI investors typically have little to no influence or control over the companies in which they invest. They are passive investors who participate in the financial markets and rely on market dynamics to drive returns. | FDI investors actively participate in the management and decision-making of the businesses they invest in. They often seek to exercise control over company operations and strategy, which may include appointing board members or key executives. |
| FPI investments are often made through financial instruments like stocks, bonds, and securities. Investors may use instruments like mutual funds or exchange-traded funds (ETFs) to gain exposure to foreign markets | FDI investments involve a direct equity stake in a company, either through share acquisition or the establishment of a subsidiary or branch in the host country. FDI can also involve the purchase of real assets such as land, factories, or infrastructure |
| FPI can provide short-term capital inflows, but it may be more susceptible to market volatility and sudden capital outflows. It may not have as direct an impact on job creation and economic development as FDI. | FDI often contributes to long-term economic development by creating jobs, stimulating infrastructure development, transferring technology and expertise, and enhancing the competitiveness of local industries |
| FPI investments are subject to regulations that vary by country and may include foreign ownership limits, reporting requirements, and tax considerations. | FDI is subject to regulations that can be more stringent and may involve government approval, sector-specific conditions, and investment protection measures |
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For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1. Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. (UPSC CSE 2011)
Which one of the following statements best represents an important difference between the two?
A.FII helps bring better management skills and technology, while FDI only brings in capital
B.FII helps in increasing capital availability in general, while FDI only targets specific sectors C.FDI flows only into the secondary markets, while FII targets primary market
D.FII is considered to the more stable than FDI
Answer (B)
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2. About the National Health Policy
The National Health Policy (NHP) is a comprehensive framework that outlines the government's vision, goals, and strategies for addressing healthcare challenges and improving the health outcomes of the population. It serves as a guiding document for healthcare planning, resource allocation, and implementation of health programs and initiatives.
Key components of a National Health Policy typically include
- The NHP articulates the government's vision for the healthcare system and sets specific goals and targets to be achieved over a defined period. These goals often encompass areas such as improving access to healthcare services, enhancing the quality of care, reducing health inequalities, and promoting health and well-being.
- It outlines strategies for organizing and delivering healthcare services, including the development of infrastructure, human resources, and healthcare facilities. This may involve expanding healthcare coverage, strengthening primary healthcare services, and integrating various levels of care within the health system.
- The NHP addresses mechanisms for financing healthcare services, including public funding, health insurance schemes, and other financial instruments. It may outline strategies for increasing public spending on health, mobilizing resources, and ensuring equitable access to affordable healthcare for all segments of the population.
- The policy emphasizes the importance of health promotion, disease prevention, and public health interventions to improve population health outcomes. This may include initiatives to promote healthy lifestyles, prevent communicable and non-communicable diseases, and address social determinants of health.
- It establishes regulatory frameworks and standards for healthcare delivery, quality assurance, and patient safety. This may involve licensing and accreditation of healthcare facilities, regulation of healthcare professionals, and monitoring of healthcare quality and outcomes.
- The NHP recognizes the importance of partnerships and collaboration between government agencies, healthcare providers, civil society organizations, and other stakeholders to achieve its goals. It may involve engaging multiple sectors beyond healthcare, such as education, agriculture, and urban planning, to address health determinants comprehensively.
- The policy includes mechanisms for monitoring and evaluating progress towards its goals and objectives. This may involve the development of health indicators, data collection systems, and periodic assessments to track performance, identify gaps, and inform policy adjustments.
3. What is Primary healthcare?
Primary healthcare refers to essential health services that are universally accessible to individuals and communities. It is typically the first point of contact with the healthcare system for most people and plays a crucial role in promoting health, preventing diseases, and managing common health problems.
Key characteristics of primary healthcare include
- Primary healthcare services are geographically and financially accessible to all members of the community, regardless of their socioeconomic status, location, or background. This accessibility ensures that individuals can seek care when needed without encountering barriers related to distance or cost.
- Primary healthcare addresses a wide range of health needs across the lifespan, including preventive care, health promotion, treatment of common illnesses, management of chronic conditions, and referral to specialized services when necessary. It emphasizes holistic and patient-centered care that considers the physical, mental, and social aspects of health.
- Primary healthcare services are integrated across different levels of care, from individual clinics and health centres to community-based programs and outreach services. This integration fosters coordination and continuity of care, ensuring seamless transitions between different healthcare providers and settings.
- Primary healthcare empowers individuals and communities to take control of their health and well-being through health education, counselling, and community engagement. It promotes active participation and self-management, empowering individuals to make informed decisions about their health and lifestyle choices.
- Primary healthcare strives to address health inequalities and disparities by ensuring that healthcare services are distributed fairly and reach underserved populations, including marginalized groups, rural communities, and vulnerable populations. It promotes equity in access to healthcare and health outcomes for all individuals, regardless of their background or circumstances.
- Primary healthcare involves collaboration and teamwork among different healthcare professionals, including doctors, nurses, midwives, pharmacists, community health workers, and allied health professionals. This interdisciplinary approach allows for a comprehensive and holistic response to the diverse health needs of individuals and communities.
4. What is out-of-pocket expenditure?
Out-of-pocket expenditure (OOP) refers to the direct payments made by individuals or households for healthcare goods and services at the point of receiving care. These expenses are typically paid for by individuals using their own funds rather than being covered by a third-party payer, such as government health insurance, private health insurance, or employer-sponsored health plans.
Key characteristics of out-of-pocket expenditure include
- OOP expenses are incurred by individuals or households at the time they receive healthcare services. This may include payments for doctor's visits, hospital stays, prescription medications, diagnostic tests, medical procedures, and other healthcare-related expenses.
- OOP expenses are incurred when healthcare services are not fully covered by health insurance or other third-party payers. They represent the portion of healthcare costs that individuals are responsible for paying themselves, either because they do not have insurance coverage or because their insurance plan requires them to pay deductibles, copayments, coinsurance, or other cost-sharing amounts.
- OOP expenses can vary widely depending on factors such as the type and severity of the health condition, the type of healthcare provider or facility visited, the location of services, and the individual's insurance coverage. Some healthcare services may be relatively inexpensive, while others may involve significant out-of-pocket costs, especially for specialized or high-cost treatments.
- OOP expenses can impose a significant financial burden on individuals and households, particularly those with limited financial resources or those facing high healthcare costs. In some cases, out-of-pocket spending on healthcare can lead to financial hardship, medical debt, or barriers to accessing necessary care, especially for vulnerable or marginalized populations.
- High levels of out-of-pocket spending can deter individuals from seeking timely and appropriate healthcare services, leading to delays in diagnosis and treatment, underutilization of preventive services, and poorer health outcomes. This is particularly relevant in low- and middle-income countries where healthcare costs may represent a substantial proportion of household income.
- Policymakers often seek to reduce out-of-pocket spending on healthcare by implementing measures to expand health insurance coverage, increase financial protection, and improve access to affordable healthcare services. This may include initiatives such as universal health coverage, social health insurance schemes, subsidies for health insurance premiums, or waivers for certain categories of patients.
5. How non-communicable diseases (NCDs) has become a challenge for India?
Non-communicable diseases (NCDs) have become a significant challenge for India due to several interrelated factors
- India is experiencing a rapid epidemiological transition characterized by a shift from communicable diseases to non-communicable diseases. Lifestyle changes, urbanization, sedentary lifestyles, unhealthy diets, tobacco use, and increasing life expectancy have contributed to the rising prevalence of NCDs such as cardiovascular diseases, diabetes, cancer, and chronic respiratory diseases.
- NCDs account for a substantial burden of morbidity, mortality, and disability in India. According to the World Health Organization (WHO), NCDs are responsible for more than 60% of all deaths in India. Cardiovascular diseases alone contribute to nearly one-fourth of all deaths, followed by chronic respiratory diseases, cancer, and diabetes.
- NCDs impose a significant economic burden on individuals, households, and the healthcare system. High out-of-pocket expenditures for NCD treatment and management can lead to financial hardship, impoverishment, and barriers to accessing healthcare services, particularly for low-income populations. The economic costs of NCDs include direct medical expenses, indirect costs related to productivity losses and disability, and intangible costs associated with pain and suffering.
- NCDs disproportionately affect vulnerable and marginalized populations, exacerbating existing health inequities and disparities. Socioeconomic factors such as poverty, inadequate access to healthcare, limited health literacy, and environmental factors contribute to disparities in NCD risk factors, prevalence, and outcomes across different population groups.
- India's healthcare system faces challenges in addressing the growing burden of NCDs, including inadequate infrastructure, limited human resources, fragmented healthcare delivery, and gaps in prevention, diagnosis, and management services. There is a need for strengthening primary healthcare, integrating NCD services into existing health programs, and improving access to essential medicines and technologies for NCD prevention and control.
- NCD risk factors such as tobacco use, unhealthy diets, physical inactivity, harmful use of alcohol, and air pollution are highly prevalent in India. Efforts to address NCDs require multi-sectoral collaboration and population-wide interventions to promote healthy lifestyles, reduce exposure to risk factors, and create supportive environments for health.
- India's demographic transition, characterized by an ageing population and increasing life expectancy, contributes to the rising burden of NCDs. Older adults are at higher risk of developing NCDs and often require long-term care and management, placing additional strain on healthcare resources and services.
6. The status of health insurance in India
The status of health insurance in India has been evolving rapidly in recent years, with significant growth in coverage, awareness, and innovation. As of 2021, only around 37% of the Indian population has health insurance, with a significant gap between urban and rural areas.
Several factors contribute to the current status of health insurance in India
- The Government of India has implemented several health insurance schemes to improve access to healthcare and provide financial protection to vulnerable populations. These include schemes such as Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PMJAY), Rashtriya Swasthya Bima Yojana (RSBY), and various state-sponsored health insurance programs. These schemes aim to cover economically disadvantaged individuals and families, offering cashless treatment for a range of medical services.
- The private health insurance sector in India has experienced significant growth in recent years, driven by increasing demand for healthcare coverage and rising healthcare costs. Private health insurance companies offer a wide range of health insurance products tailored to the needs and preferences of different segments of the population. These include individual health insurance plans, family floater plans, group health insurance for employees, and specialized products for critical illness, maternity, and senior citizens.
- The coverage of health insurance in India has expanded significantly in recent years, with more individuals and families opting for health insurance coverage. Government initiatives, employer-sponsored schemes, and individual purchasing decisions have contributed to the growth in health insurance coverage across urban and rural areas. However, there are still significant gaps in coverage, especially among low-income and informal sector workers.
- Health insurance companies in India are increasingly offering innovative products and services to meet the evolving needs of consumers. This includes value-added services such as telemedicine consultations, wellness programs, health check-ups, and digital platforms for policy management and claims processing. Insurers are also leveraging technology, data analytics, and artificial intelligence to enhance customer experience, improve risk assessment, and prevent fraud.
- Despite progress, there are several challenges facing the health insurance sector in India, including low awareness, affordability issues, inadequate regulatory oversight, fraudulent practices, and the need for capacity building in insurance infrastructure and human resources. However, there are also opportunities for further expansion and improvement, including increasing coverage among underserved populations, enhancing product affordability and transparency, strengthening regulatory frameworks, and promoting innovation and competition in the sector.
7. Government health expenditure in primary, secondary, and tertiary care
Government health expenditure in primary, secondary, and tertiary care refers to the allocation of public funds towards healthcare services at different levels of the healthcare system.
Primary Care
- Primary care includes essential healthcare services provided at the community level, typically through primary health centres (PHCs), health sub-centers, and other primary care facilities. These services focus on preventive care, health promotion, early detection, and basic treatment of common health problems.
- Government health expenditure in primary care encompasses funding for infrastructure development, staff salaries, medical supplies, equipment, preventive health programs, and outreach activities.
- Examples of primary care services funded by the government include immunization programs, maternal and child health services, family planning, nutrition programs, and communicable disease control initiatives.
Secondary Care
- Secondary care refers to specialized medical services provided by district hospitals, community health centres (CHCs), and other secondary care facilities. These services include diagnostic services, emergency care, specialist consultations, surgeries, and inpatient care for more complex health conditions.
- Government health expenditure in secondary care includes funding for the operation and maintenance of secondary care facilities, staffing of medical and paramedical personnel, medical equipment and technology, medicines and supplies, and support for specialized health programs.
- Examples of secondary care services funded by the government include obstetric care, surgical services, management of chronic diseases, diagnostic imaging, laboratory testing, and emergency medical services.
Tertiary Care
- Tertiary care refers to highly specialized medical services provided by tertiary care hospitals, medical colleges, teaching hospitals, and other advanced healthcare facilities. These services are typically delivered by specialized medical professionals, advanced medical technologies, and multidisciplinary teams.
- Government health expenditure in tertiary care includes funding for the operation and maintenance of tertiary care institutions, staffing of specialized healthcare professionals, procurement of advanced medical equipment and technology, research and training programs, and support for specialized treatment and rehabilitation services.
- Examples of tertiary care services funded by the government include organ transplantation, cancer treatment, cardiac surgery, neurosurgery, intensive care, rehabilitation services, and medical education and research.
8. How does India fare with other countries in terms of GDP expenditure of the health sector?
Accessing real-time data to make a definitive comparison is challenging, but here's some information to help you understand India's standing on health sector expenditure compared to other countries. According to the Economic Survey 2022-23, the central and state governments' budgeted expenditure on healthcare reached 2.1% of GDP in FY23. This indicates an increase from previous years.
Global Comparison Challenges
- There can be discrepancies in how different countries define and measure health expenditure. This makes direct comparisons challenging.
- Some countries might have a lower public health expenditure but a high private health insurance penetration, leading to a higher overall health expenditure.
- World Bank Open Data provides data on health expenditure as a percentage of GDP for various countries.
- WHO Global Health Observatory offers health expenditure data by country. While it might not have the most recent information, it can be a helpful starting point for comparisons.
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For Prelims: National Health Policy, Non-Communicable Diseases, Economic Survey, GDP
For Mains:
1. Critically examine the current level of government health expenditure in India compared to other countries. Discuss the challenges in making direct comparisons and suggest potential solutions to improve health expenditure in India. (250 Words)
2. How can India leverage technology and innovation to enhance health insurance accessibility, affordability, and customer experience in the health insurance sector? (250 Words)
3. Discuss the challenges faced in delivering effective primary healthcare services across the country, particularly in rural areas. Suggest policy measures to improve accessibility, quality, and manpower in primary healthcare facilities. (250 Words)
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Previous Year Questions
1. As per Health Policy, 2017 approved by the Union Cabinet recently, what was the expected amount of public health expenditure as a percentage of GDP? (APPSC Panchayat Secretary 2016)
A. 5.5% B. 4.5% C. 3.5% D. 2.5%
2. Brominated flame retardants are used in many household products like mattresses and upholstery. Why is there some concern about their use? (UPSC 2014)
1. They are highly resistant to degradation in the environment.
2. They are able to accumulate in humans and animals.
Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answers: 1-D, 2-C |
Source: The Indian Express
PERSONALITY RIGHTS
1. Context
2. About personality rights
- Personality rights are the rights of a person to protect their identity, including their name, voice, signature, images, and any other feature easily identified by the public.
- Personality rights are not expressly mentioned in a statute in India but are traced to fall under the right to privacy and the right to property.
- The closest statute to protect personality rights is Article 21 of the Constitution of India under rights to privacy and publicity.
- Other statutory provisions protecting personality rights include the Copyright Act, 1957. According to the Act, moral rights are only granted to authors and performers, including actors, singers, musicians, and dancers.
- The provisions of the Act mandate that the Authors or the Performers have the right to be given credit or claim authorship of their work and also have a right to restrain others from causing any kind of damage to their work.
- The Indian Trademarks Act, 1999 also protects personal rights under Section 14, which restricts the use of personal names and representations.
- The Delhi High Court and the Madras High Court have passed interim orders protecting the personality rights of celebrities, but the law is still at a nascent stage in India.
- Celebrities often register some aspects of their personality as trademarks to use them commercially. For example, Usain Bolt's "bolting" or lightning pose is a registered trademark.
4. How have Indian courts decided so far?
- In a recent case, the Delhi High Court granted an ex-parte, omnibus injunction restraining 16 entities from using actor Anil Kapoor's name, likeness, and image for commercial purposes.
- The court also granted an injunction against the use of technological tools like Artificial Intelligence, face morphing, and GIFs to create unauthorised versions of Kapoor.
- In an earlier case, the Delhi High Court had issued a similar injunction against the unauthorised use of Amitabh Bachchan's personality rights.
- The court had injuncted the use of variations of his name such as "Big B", his unique style of addressing the computer as "'Computer ji", and his catchphrase "lock kiya jaye".
- In 2015, the Madras High Court observed that "personality right vests on those persons, who have attained the status of celebrity".
- The court's observation came in the actor Rajnikanth's lawsuit against the producers of the movie "Main hoon Rajnikanth", claiming that his name, image, and style of delivering dialogues had infringed on his personality rights.
- The court said that the producers after admitting that the actor has a high reputation can't now say that Rajnikanth is a common name.
5. When can the Court grant an injunction?
The Delhi High Court has listed out the following elements comprising the liability for infringement of the right of publicity:
- The right has to be valid. This means that the court must be satisfied that the "plaintiff owns an enforceable right in the identity or persona of a human being."
- The celebrity must be easily identifiable in the alleged misuse. "The celebrity must be identifiable from the defendant’s unauthorized use Infringement of right of publicity requires no proof of falsity, confusion, or deception, especially when the celebrity is identifiable," the HC had said.
- The defendant must have intended to trade upon the identity of the plaintiff, from which identifiability can be presumed.
6. Conclusion
In essence, the protection of personality rights in India remains a developing area of law, with celebrities increasingly seeking legal recourse to safeguard their distinct identities in an evolving digital landscape.
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For Prelims: Personality rights, Delhi High Court, Madras High Court, Right to property, trademark, right to privacy, Article 21, Copyright Act, 1957
For Mains:
1. Explain how can the legal framework for protecting personality rights in India be strengthened to better address the challenges of the digital age. (250 Words)
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Previous Year Questions
1. What is the position of the Right to Property in India? (UPSC 2021)
A. Legal right available to citizens only
B. Legal right available to any person
C. Fundamental Right available, to citizens only
D. Neither Fundamental Right nor legal right
Answer: B
2. In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999. The difference/differences between a "Trade Mark" and a Geographical Indication is/are (UPSC 2010)
1. A Trade Mark is an individual or a company's right whereas a Geographical Indication is a community's right.
2. A Trade Mark can be licensed whereas a Geographical Indication cannot be licensed.
3. A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication is assigned to the agricultural goods/products and handicrafts only.
Which of the statements given above is/are correct?
A. 1 only B. 1 and 2 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
3. Which of the following statements regarding Article 21 of the Constitution of India is/ is correct? (CDS GK 2017)
1. Article 21 is violated when under-trial prisoners are detained under judicial custody for an indefinite period.
2. Right to life is one of the basic human rights and not even the state has the authority to violate that right.
3. Under Article 21, the right of a woman to make reproductive choices is not a dimension of personal liberty.
Select the correct answer using the code given below.
A. 1, 2 and 3 B. 1 and 2 only C. 1 and 3 only D. 2 only
Answer: B
4. Article 21 of Indian Constitution secures: (OPSC OAS 2018)
A. Right to life only
B. Right to personal liberty only
C. Right to liberty and privacy
D. Right to life, personal liberty and right to privacy
Answer: D
5. ‘Right to Privacy’ is protected under which Article of the Constitution of India? (UPSC 2021) (a) Article 15 Answer: C 6. Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statement? (2018) (a) Article 14 and the provisions under the 42nd Amendment to the Constitution. (b) Article 17 and the Directive Principles of State Policy in Part IV. (c) Article 21 and the freedoms guaranteed in Part III. (d) Article 24 and the provisions under the 44th Amendment to the Constitution. Answer: C |
ETHANOL BLENDING
1. Context
- Ethanol, also known as ethyl alcohol, is a type of alcohol commonly used as a biofuel and a key ingredient in alcoholic beverages.
- It is a clear, colorless liquid with a characteristic odor and a slightly sweet taste.
- Ethanol has a wide range of applications and is produced through the fermentation of sugars by yeast or other microorganisms.
3. Ethanol Blending
- Ethanol blending refers to the practice of mixing ethanol with gasoline or other fuels to create a blended fuel.
- Ethanol is a biofuel derived from renewable sources such as sugarcane, corn, or other plant materials.
- It is commonly used as an additive to gasoline in various parts of the world to reduce greenhouse gas emissions and promote cleaner fuel options.
- In the context of transportation, the most common form of ethanol blending is with gasoline, creating a blend known as ethanol-gasoline blend or gasohol.
- The most common ethanol-gasoline blends are E10 and E15, indicating the percentage of ethanol in the mixture. For example, E10 contains 10% ethanol and 90% gasoline, while E15 contains 15% ethanol and 85% gasoline.

4. Benefits of Ethanol blending
- Ethanol is considered a renewable fuel because it is derived from plant materials that absorb carbon dioxide during their growth. When blended with gasoline, ethanol can help reduce the carbon footprint of transportation fuels, as it emits fewer greenhouse gases compared to pure gasoline.
- By blending ethanol with gasoline, countries can reduce their reliance on imported fossil fuels and promote energy security.
- Ethanol has a higher octane rating than gasoline, which can improve engine performance and increase fuel efficiency.
- Ethanol production often relies on agricultural feedstocks, providing economic benefits to farmers and rural communities.
- Ethanol-gasoline blends can help reduce harmful pollutants such as carbon monoxide and volatile organic compounds, contributing to improved air quality.
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Mixing 20 percent ethanol in petrol can potentially reduce the auto fuel import bill by a yearly $4 billion, or Rs 30,000 crore.
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Another major benefit of ethanol blending is the extra income it gives to farmers. Ethanol is derived from sugarcane and also foodgrains. Hence, farmers can earn extra income by selling their surplus produce to ethanol blend manufacturers.
5. What is E20 Fuel?
- E20 fuel is a type of blended fuel that contains 20% ethanol and 80% gasoline.
- It is an ethanol-gasoline blend, similar to other common blends like E10 (10% ethanol) and E15 (15% ethanol).
- The percentage of ethanol in the blend is denoted by the "E" followed by the percentage of ethanol content.
- E20 fuel is considered a higher ethanol blend compared to E10 and E15, which are more widely available in various countries.
- The use of E20 is part of efforts to promote renewable fuels and reduce greenhouse gas emissions from the transportation sector.
6. Significance of E20 fuel
- Reduced Greenhouse Gas Emissions: Ethanol is derived from renewable plant sources, and blending it with gasoline can help reduce the carbon footprint of transportation fuels, contributing to efforts to combat climate change.
- Energy Security: By using more domestically produced ethanol, countries can reduce their dependence on imported fossil fuels and enhance energy security.
- Improved Engine Performance: Ethanol's higher octane rating can enhance engine performance and increase fuel efficiency in certain vehicles.
- Support for Agriculture: Ethanol production often relies on agricultural feedstocks, supporting farmers and rural economies.
7. Challenges in Ethanol Blending Programme
While ethanol blending in transportation fuels offers various benefits, there are several challenges that countries may face in implementing and sustaining a successful ethanol blending program. Some of these challenges include:
- Infrastructure and Distribution: Establishing the necessary infrastructure for blending and distributing ethanol-gasoline blends can be a significant challenge. This includes ensuring that fuel stations have the proper storage facilities and compatible pumps to dispense blended fuels.
- Compatibility with Vehicles: Not all vehicles are designed to run on high ethanol blends like E20 or E85. Older vehicles or vehicles from certain manufacturers may not be compatible with these blends, leading to potential engine damage or decreased performance.
- Fuel Quality and Standards: Maintaining consistent fuel quality is essential to prevent engine damage and ensure consumer confidence. Governments and fuel suppliers must adhere to strict quality standards and monitor the blending process to avoid issues with fuel performance.
- Feedstock Availability and Cost: The production of ethanol relies on agricultural feedstocks, such as corn, sugarcane, or other biomass. The availability and cost of these feedstocks can vary, affecting the overall cost of ethanol production and blending.
- Land Use and Food Security Concerns: Utilizing agricultural land for ethanol production can raise concerns about competing with food production and potentially impacting food security in some regions.
- Competing Uses for Ethanol: Ethanol has various applications beyond fuel blending, such as in the production of alcoholic beverages, pharmaceuticals, and industrial chemicals. Competing uses can influence the availability and cost of ethanol for blending.
8. National Biofuel Policy
- India has a National Policy on Biofuels, which was first introduced in 2009 and later revised in 2018. The policy aims to promote the use of biofuels to reduce the country's dependence on fossil fuels, enhance energy security, promote sustainable development, and mitigate greenhouse gas emissions.
- The policy encourages the blending of biofuels with conventional fossil fuels to create biofuel blends. It focuses on the production and utilization of first-generation biofuels like ethanol and biodiesel, as well as advanced biofuels made from non-food feedstock.
- The policy sets targets for blending biofuels with conventional fuels in the transportation sector. For instance, the policy aimed for a 20% ethanol blending in petrol and a 5% biodiesel blending in diesel by 2030.
- The policy emphasizes the development and promotion of second-generation biofuels, which are produced from non-food feedstock, such as agricultural residues, waste, and non-edible oils. This helps avoid competition with food crops and ensures sustainability.
- The policy supports research and development initiatives in the biofuels sector, aimed at improving production processes, enhancing feedstock availability, and developing cost-effective technologies for biofuel production.
- The policy focuses on creating a robust supply chain for biofuels, from feedstock cultivation and collection to biofuel production, distribution, and marketing. This helps in ensuring a smooth and efficient supply of biofuels across the country.
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For Prelims: Ethanol Blending, E20 fuel, Greenhouse Gas Emission, National Policy on Biofuels, Food Security, and Gasoline.
For Mains: 1. Discuss the benefits and challenges of ethanol blending in transportation fuels as a strategy to reduce greenhouse gas emissions and promote renewable energy sources. (250 Words).
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Previous year Question1. According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (UPSC 2020)
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:
A. 1, 2, 5, and 6 only
B. 1, 3, 4, and 6 only
C. 2, 3, 4, and 5 only
D. 1, 2, 3, 4, 5 and 6
Answer: A
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