PURCHASING MANAGERS INDEX (PMI)
- PMI is typically calculated through surveys of purchasing managers in various industries. These managers are asked about their perception of different aspects of business activity, including new orders, production levels, employment, supplier deliveries, and inventories.
- PMI is usually reported as a number between 0 and 100.
- A PMI value above 50 generally indicates expansion in the sector, while a value below 50 suggests contraction. The farther the PMI is from 50, the stronger the perceived expansion or contraction.
- PMI is considered a leading indicator because it provides insights into economic conditions before official economic data, such as GDP growth or employment figures, are released. It can be used to anticipate changes in economic activity.
- PMIs are calculated separately for manufacturing and services sectors. A Manufacturing PMI focuses on the manufacturing sector, while a Services PMI provides insights into the services sector. These sector-specific PMIs can give a more detailed view of the economy.
Components: PMI is composed of several components, including:
- New Orders: This component measures the number of new orders received by businesses. An increase in new orders often signals growing demand and economic expansion.
- Production: This component reflects changes in production levels. An increase suggests increased economic activity.
- Employment: The employment component indicates changes in the level of employment within the sector. An increase typically means job growth.
- Supplier Deliveries: This measures the speed at which suppliers can deliver materials. Slower deliveries may indicate supply chain issues or increased demand.
- Inventories: Inventory levels can be an indicator of expected demand. A decrease in inventories might suggest an expectation of rising demand.
- The Purchasing Managers' Index (PMI) is a significant economic indicator with several important implications and uses
- PMI serves as a barometer of the economic health of a country or region. A PMI above 50 generally indicates economic expansion, while a PMI below 50 suggests contraction.
- This provides a quick and easily understandable snapshot of the direction of economic activity, making it a valuable tool for assessing the overall economic climate.
- PMI is a leading indicator, meaning it often provides insights into economic conditions ahead of other official economic data, such as GDP growth or employment figures. As such, it is used by businesses, investors, and policymakers to anticipate changes in economic activity and make informed decisions
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Previous Year Questions
1.What does S & P 500 relate to? (UPSC CSE 2008) (a) Supercomputer Answer: (d) |
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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GREAT INDIAN BUSTARD
1.Context
For the first time in a decade, Gujarat saw the birth of a Great Indian Bustard (GIB) chick on March 26 — after a “trans-state conservation effort” that involved an “arduous 770-km road journey” across a “halt-free corridor” to transport a 15-day old fertile egg from Sam in Rajasthan’s Jaisalmer district to Naliya in Gujarat’s Kutch district.
2.About Great Indian Bustard
- The Great Indian Bustard (GIB) is a critically endangered bird species native to the Indian subcontinent. It is one of the heaviest flying birds in the world and is characterized by its large size, long legs, and brownish-grey plumage with black markings. The male GIB is distinguished by its distinctive black crown and long, drooping feathers on the neck.
- Historically, the GIB inhabited grasslands and semi-arid regions across India, Pakistan, and Nepal. However, due to habitat loss, hunting, and other human activities, its population has declined dramatically. Today, the species is primarily found in isolated pockets in the states of Rajasthan, Gujarat, Maharashtra, Karnataka, and Andhra Pradesh in India.
- Conservation efforts aimed at protecting the Great Indian Bustard include habitat restoration, anti-poaching measures, captive breeding programs, and community engagement initiatives. Despite these efforts, the GIB remains at risk of extinction, and urgent action is needed to ensure its survival.
- The Great Indian Bustard is not only a symbol of India's rich biodiversity but also an indicator of the health of its grassland ecosystems. Efforts to conserve this iconic species are therefore crucial for preserving India's natural heritage and biodiversity
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International Union for Conservation of Nature (IUCN) status – critically endangered. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)-Appendix 1 Convention on Migratory Species (CMS)-Appendix 1 Wildlife (Protection) Act, 1972-Schedule 1 |
3.What are the Article 21 and 14 of the Indian Constitution?
Article 21 and Article 14 of the Indian Constitution are fundamental rights that guarantee certain protections to citizens of India.
Article 21: Right to Life and Personal Liberty
Article 21 of the Indian Constitution states that "No person shall be deprived of his life or personal liberty except according to procedure established by law." This article provides individuals with the fundamental right to life and personal liberty. It ensures that no person can be deprived of their life or personal liberty except through the due process of law. Over the years, the Supreme Court of India has interpreted Article 21 expansively to encompass various rights and freedoms, including the right to privacy, dignity, shelter, and a clean environment.
Article 14: Right to Equality
Article 14 of the Indian Constitution guarantees the right to equality before the law and equal protection of the laws to all persons within the territory of India. It states that "The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India." Article 14 ensures that the government cannot discriminate against individuals based on factors such as religion, race, caste, sex, or place of birth. It mandates that all individuals are entitled to equal treatment and opportunities under the law. The principle of equality enshrined in Article 14 is fundamental to the Indian legal system and is upheld by the judiciary to prevent arbitrary or discriminatory actions by the state
4.Habitat
- The Great Indian Bustard (GIB) primarily inhabits grasslands and semi-arid regions across the Indian subcontinent. Historically, it was found in various states of India, including Rajasthan, Gujarat, Maharashtra, Karnataka, and Andhra Pradesh, as well as in parts of Pakistan and Nepal.
- These grasslands provide the GIB with suitable habitat for foraging, nesting, and mating. They typically consist of open, flat terrain with sparse vegetation, including grasses, shrubs, and scattered trees. The bird's large size and long legs make it well-adapted to traversing these open landscapes.
- However, due to extensive habitat loss and degradation resulting from factors such as agricultural expansion, development projects, and human encroachment, the natural habitat of the Great Indian Bustard has been significantly reduced. Today, the remaining populations are primarily confined to fragmented patches of grassland habitat, often in protected areas and wildlife reserves.
- Conservation efforts aimed at preserving the GIB's habitat include initiatives such as habitat restoration, land management practices to promote grassland health, and the establishment of conservation reserves and corridors to connect fragmented habitats. Protecting and restoring these grassland ecosystems is crucial for the survival of the Great Indian Bustard and the countless other species that depend on them for their existence
5.Threats
- Power Transmission Lines –among the greatest threat to the Great Indian Bustard are overhead transmission lines.
- Due to their poor frontal vision, the birds cannot spot the power lines from a distance and are too heavy to change course when close. Thus they collide with the cables and die.
- Hunting
- Attack by feral dogs and wild pigs
- The natural habitat of Bustards is also an ideal space for setting up wind turbines and solar panels.
- Habitat loss due to widespread agriculture.
- According to the Wildlife Institute of India (WII), in Rajasthan, 18GIBs die every year after colliding with power lines.
6.Steps Taken
The Supreme Court ordered all overhead power transmission lines in core and potential Great Indian Bustard habitats in Rajasthan and Gujarat be made underground.
The court sought reports from the chief secretaries of the two states in six weeks on the installation of bird diverters (reflector–like structures strung on power cables) in priority areas.SC asked them to assess the length of transmission lines that need to go underground.
The captive breeding programme of the Great Indian Bustard was spearheaded by the wildlife institute of India, Dehradun
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For Prelims :Flagship species, WII, Bustard status, Indian Polity and Governance For Mains :GS II – Constitution of India 1.What are the major threats to Great Indian Bustard? Suggest measures to save them. |
UNESCO'S WORLD HERITAGE SITES
UNESCO, the United Nations Educational, Scientific and Cultural Organization, plays a crucial role in the protection and preservation of cultural and natural heritage worldwide. Its key mission is to recognize and safeguard sites of exceptional value to humanity. This effort is guided by the Convention Concerning the Protection of the World Cultural and Natural Heritage, an international agreement adopted in 1972.
A World Heritage Site is designated based on its "outstanding universal value", meaning it holds exceptional cultural or natural significance that transcends national borders and is of collective importance for present and future generations. These sites are classified into three categories: cultural heritage, natural heritage, and mixed heritage (both cultural and natural).
- Cultural heritage sites are recognized for their historical, artistic, or scientific value, including monuments, groups of buildings, and locations shaped by human interaction with nature. Examples include the Taj Mahal, the Statue of Liberty, and the Sydney Opera House.
- Natural heritage sites are acknowledged for their scientific, conservation, or aesthetic significance, such as the Sundarbans National Park and Victoria Falls.
Currently, the World Heritage List includes 1,223 sites, categorized into 952 cultural, 231 natural, and 40 mixed properties across 168 nations. As of October 2024, 196 countries have ratified the World Heritage Convention.
The World Heritage concept is universal, as UNESCO states that these sites "belong to all people, regardless of the country in which they are located."
3. Criterion for Selecting World heritage Sites
The UNESCO World Heritage Committee convenes at least once annually, typically in June or July, to review and decide on the inclusion, removal, or modification of sites on the World Heritage List. The Committee consists of 21 members, selected from the 196 States Parties that have ratified the 1972 World Heritage Convention.
Selection Criteria
To be designated as a World Heritage Site, a location must demonstrate outstanding universal value and satisfy at least one of ten specific selection criteria. These criteria, outlined in the Operational Guidelines for the Implementation of the World Heritage Convention, are periodically updated to reflect the evolving understanding of heritage conservation.
Until 2004, sites were chosen based on six cultural and four natural criteria. However, following a revision of the Operational Guidelines, a unified set of ten criteria is now used:
- Masterpiece of Human Creativity: Represents an extraordinary achievement of human creative genius.
- Cultural Exchange: Showcases a significant interchange of human values across time or within a specific cultural area through architecture, technology, arts, urban planning, or landscape design.
- Cultural Testimony: Bears unique or exceptional evidence of a cultural tradition or a civilization, whether living or extinct.
- Historical Significance: Serves as an outstanding example of architectural, technological, or landscape development that illustrates a key stage in human history.
- Traditional Settlement and Land Use: Exemplifies a traditional human settlement, land use, or sea use, especially one that is vulnerable to irreversible change.
- Association with Events or Traditions: Holds a direct connection to significant events, traditions, beliefs, or artistic and literary works of outstanding universal importance.
- Natural Beauty and Aesthetic Value: Features extraordinary natural phenomena or landscapes of exceptional beauty.
- Earth’s History and Geological Significance: Represents major stages of Earth's history, including records of life, ongoing geological processes, and distinctive landform development.
- Ecological and Biological Evolution: Demonstrates significant ecological and biological processes that contribute to the evolution of ecosystems and biodiversity.
- Conservation of Biodiversity: Contains critical natural habitats essential for the in-situ conservation of biodiversity, including threatened species of exceptional scientific or conservation value
4. India's World heritage sites
India became a signatory to the Convention Concerning the Protection of the World Cultural and Natural Heritage (1972), commonly known as the World Heritage Convention, in 1977. Currently, 43 sites from India have been inscribed on the UNESCO World Heritage List, comprising 35 cultural sites, 7 natural sites, and 1 mixed site. Additionally, 62 sites are included in UNESCO’s Tentative List.
UNESCO Cultural World Heritage Sites in India
- Taj Mahal (1983)
- Agra Fort (1983)
- Ajanta Caves (1983)
- Ellora Caves (1983)
- Group of Monuments at Mahabalipuram (1984)
- Sun Temple, Konârak (1984)
- Churches and Convents of Goa (1986)
- Fatehpur Sikri (1986)
- Group of Monuments at Hampi (1986)
- Khajuraho Group of Monuments (1986)
- Elephanta Caves (1987)
- Great Living Chola Temples (1987, 2004)
- Group of Monuments at Pattadakal (1987)
- Buddhist Monuments at Sanchi (1989)
- Qutb Minar and its Monuments, Delhi (1993)
- Humayun’s Tomb, Delhi (1993)
- Mountain Railways of India (1999, 2005, 2008)
- Mahabodhi Temple Complex at Bodh Gaya (2002)
- Rock Shelters of Bhimbetka (2003)
- Champaner-Pavagadh Archaeological Park (2004)
- Chhatrapati Shivaji Terminus (formerly Victoria Terminus) (2004)
- Red Fort Complex (2007)
- The Jantar Mantar, Jaipur (2010)
- Hill Forts of Rajasthan (2013)
- Rani-ki-Vav (The Queen’s Stepwell), Gujarat (2014)
- Archaeological Site of Nalanda Mahavihara, Bihar (2016)
- The Architectural Work of Le Corbusier – A Contribution to the Modern Movement (2016)
- Historic City of Ahmedabad (2017)
- Victorian Gothic and Art Deco Ensembles of Mumbai (2018)
- Jaipur City, Rajasthan (2019)
- Dholavira: A Harappan City (2021)
- Kakatiya Rudreshwara (Ramappa) Temple, Telangana (2021)
- Sacred Ensembles of the Hoysalas (2023)
- Santiniketan (2023)
- Moidams – The Mound-Burial System of the Ahom Dynasty (2024)
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As per the operational guidelines of the World Heritage Convention, a Tentative List serves as an inventory of sites that a country deems worthy of World Heritage status. Once a property is added to UNESCO’s Tentative List, the respective nation must prepare a nomination dossier, which is then reviewed by the UNESCO World Heritage Committee. In India, the Indian National Commission for Co-operation with UNESCO (INCCU) and the Archaeological Survey of India (ASI) play a crucial role in this process. For the first time, India hosted the 46th World Heritage Committee Meeting in July 2024 at Bharat Mandapam, New Delhi. The event was organized by the Archaeological Survey of India (ASI) under the Ministry of Culture. The logo for the event was inspired by the World Heritage Site of Hampi, and its tagline, "सह नौ यशः" (translated as "May Our Glory Grow"), was drawn from the ancient Sanskrit text, the Taittiriya Upanishad—reflecting a vision of shared prosperity and growth |
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For Prelims: Archaeological Survey of India (ASI), World Heritage Site
For Mains: GS I - Art & Culture
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Previous Year Questions
1.Recently, which one of the following was included in the UNESCO’s World Heritage list? ( UPSC CSE 2009) (a) Dilwara Temple (b) Kalka-Shimla Railway (c) Bhiterkanika Mangrove Area (d) Visakhapatnam to Araku valley railway line Answer (b) |
DEFENCE ACQUISITION COUNCIL
1. Context
2. About the Defence Acquisition Council
The Defence Acquisition Council (DAC) is the apex body for all defence acquisitions in India. It was formed after recommendations made by the Group of Ministers on 'Reforming the National Security System' in 2001, post-Kargil war. The DAC is headed by the Defence Minister and comprises the following members:
- Chief of the Defence Staff (CDS)
- Secretary, Department of Defence Production
- Secretary, Finance
- Secretary, Defence Research and Development
- Controller General of Defence Accounts
- Other senior officers from the Ministry of Defence and the Services
The Role of the Defence Acquisition Council
The DAC's primary role is to:
- Accord approval for AoN (Acceptance of Necessity) for Capital Acquisition Proposals.
- Categorise the acquisition proposals into 'Buy, Buy & Make, & Make'.
- In-principle approval of 15-Year Long-Term Integrated Perspective Plan (LTPP) for Defence Forces.
- Delegate powers to Services/C&AS for the acquisition of items up to a certain value.
- Consider and approve other issues as may be referred to it by the Defence Minister.
Functions of the Defence Acquisition Council
The DAC's primary functions are to:
- Approve capital acquisitions for the Indian Armed Forces.
- Formulate and implement policies and procedures for defence acquisitions.
- Monitor the progress of defence acquisitions.
- Oversee the implementation of the Defence Procurement Procedure (DPP).
Reasons for the creation of the Defence Acquisitions Council
The DAC was created to address the following shortcomings of the previous defence acquisition system:
- Lack of a clear and transparent decision-making process.
- Delays in the procurement of defence equipment.
- Escalation of costs.
- Lack of coordination between different agencies involved in the procurement process.
3. About Defence acquisition
Defence acquisition is the process of acquiring goods and services for the Indian Armed Forces. It is a complex and time-consuming process that involves the identification of requirements, the preparation of specifications, the selection of vendors, the negotiation of contracts, and the delivery of equipment. The Indian defence acquisition process is governed by the Defence Procurement Procedure (DPP), which is a set of guidelines that outlines the process for acquiring defence equipment.
The key stages of the defence acquisition process:
- The first step is to identify the requirements of the Armed Forces. This is done through a detailed assessment of the operational needs of the Armed Forces and the availability of resources.
- Once the requirements have been identified, the next step is to prepare the specifications for the equipment to be acquired. The specifications must be clear, detailed, and unambiguous so that the vendors can understand what is required.
- The next step is to select the vendors who will be invited to participate in the bidding process. The vendors are selected based on their technical ability, financial strength, and experience.
- Once the vendors have been selected, the next step is to negotiate the contracts. The contracts must be fair and reasonable, and they must protect the interests of the government.
- The final step is to deliver the equipment to the Armed Forces. Once the equipment has been delivered, it must be tested and accepted by the Armed Forces.
4. The Defence Procurement Procedure (DPP)
The Defence Procurement Procedure (DPP) is the guideline for defence acquisitions in India. The DPP was first introduced in 2006 and has been revised several times since then. The DPP outlines the process for defence acquisitions, from the identification of a requirement to the final acceptance of a product.
The DPP is designed to ensure that defence acquisitions are conducted in a transparent, efficient, and cost-effective manner. The DPP also seeks to promote indigenous defence production and to maximize the involvement of Indian companies in the defence sector.
Key features of the DPP
- The DPP emphasizes the need for transparency in all stages of the defence acquisition process. This includes publishing all relevant documents online and making them available to the public.
- The DPP aims to streamline the defence acquisition process and reduce delays. This includes simplifying the tendering process and reducing the number of approvals required.
- The DPP seeks to ensure that defence acquisitions are conducted cost-effectively. This includes negotiating the best possible price for goods and services and promoting indigenous defence production.
- The DPP promotes indigenous defence production by giving preference to Indian companies in the tendering process. The DPP also provides incentives for Indian companies to invest in research and development.
- The DPP seeks to maximize the involvement of Indian companies in the defence sector. This includes encouraging Indian companies to form joint ventures with foreign companies.
5. The Way Forward
The DAC and the DPP play a vital role in ensuring that the Indian Armed Forces are equipped with the latest and best possible weapons and equipment. The DAC and the DPP are also important for promoting indigenous defence production and for maximizing the involvement of Indian companies in the defence sector.
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For Prelims: Defence Acquisition Council, Defence Procurement Procedure, Light Combat Aircraft, Tejas Mk 1 A and 156, Light Combat Helicopters, Hindustan Aeronautics Limited, Kargil war
For Mains:
1. Critically analyze the role of the Defence Acquisition Council (DAC) in streamlining and expediting defence acquisitions in India. (250 Words)
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Previous Year Questions
1. The Light Combat Aircraft (LCA) designed and developed by HAL is also known as (MP Police Constable 2017)
A. Suryakiran B. Aryabhatta C. Tejas D. Prakash
2. Which of the following statements is true about the recent procurement of Tejas fighter’s aircraft by IAF? (IB ACIO Grade II 2021)
(1) The IAF has recently purchased 83 Tejas fighters aircraft from HAL
(2) The total deal is Rs. 78,000-crore
A. 1 only B. Neither 1 nor 2 C. Both 1 and 2 D. 2 only
3. What is the name of India's indigenously built Light Combat Helicopter? (OSSC BSSO 2022)
A. Nag B. Trishul C. Prachand D. Agni
4. The headquarters of the Hindustan Aeronautics Limited is located at _______________. (MP Police Constable 2017)
A. Chennai B. Bengaluru C. Dewas D. Koraput
5. What was Kargil war otherwise known as? (MP Patwari 2017)
A. Operation Vijay B. Operation Vishwas C. Operation Shaurya D. Operation Paramveer
Answers:1-C, 2-A, 3-C, 4-B 5-A
Mains
1. Analyze the circumstances that led to the Tashkent Agreement in 1966. Discuss the highlights of the Agreement. (UPSC 2013)
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PERIODIC LABOUR FORCE SURVEY (PLFS)
1. Context
2. About The Periodic Labour Force Survey (PLFS)
- The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
- The survey is conducted annually in all the states and union territories of India.
- The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
- The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
- Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
- This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.
- The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
- In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
- The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
- Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
- The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods.
4. Latest findings of the Report
Unemployment Rate (UER)
- The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
- As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
- Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one.
Labour Force Participation Rate (LFPR)
- The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
- However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
- As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
- As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.
LFPR for women
- This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
- The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.
Worker Population Rate
- Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
- As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
- The WPR is the percentage of persons employed among the persons in the population.
- Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
- This metric too has been going up and especially noteworthy are the two discrete
step-ups in 2019-20 and 2022-23.
WPR among women
Monthly earnings
Distribution of workers
5. Key Trends in PLFS 2022-23
- Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
- However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
- Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
- Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
- In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.
6. The WayForward
While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Indian Express
