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UPSC Daily Current Affairs 05 July 2024


AMIGOS IAS Daily Current Affairs (5th July 2024)

Jaishankar meets China’s Wang Yi, says LAC must be respected

GS 2: International Relations- SCO

Why is it in the news?

  • External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi met on the sidelines of the Shanghai Cooperation Organisation (SCO) Council meeting in Astana, Kazakhstan.
  • This was their first meeting since India’s parliamentary elections.

Key Takeaways

  • The talks focused on “mutual respect” in resolving the boundary issues that have strained relations for the past four years. Jaishankar emphasized the importance of respecting the Line of Actual Control (LAC) and maintaining peace in the border areas.
  • Both ministers agreed that the ongoing border situation is not beneficial for either side and highlighted the need to achieve complete disengagement in Eastern Ladakh. This was their third meeting in the past 12 months, aimed at resolving the military standoff since April 2020.
  • However, talks between border commanders and defence officials under the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) have not led to any breakthroughs, particularly in the Demchok and Depsang sectors.
  • The Chinese Ministry of Foreign Affairs emphasized finding a “correct way” to handle the border situation while resuming normal exchanges. In contrast, India maintained that normalization of relations depends on resolving the border issues.
  • Wang marked the 70th anniversary of the “Five Principles of Peaceful Coexistence” or Panchshila, calling for India and China to work together as countries of the Global South to safeguard the interests of the developing world.
  • Further, Jaishankar and Wang exchanged views on the global situation, with India extending its support for China’s presidency of the SCO in 2025. Modi’s speech reiterated the SCO’s commitment to state sovereignty and territorial integrity and emphasized combating terrorism as a primary goal of the organization.
  • Regarding the upcoming SCO Head of Government meeting in Islamabad on October 15-16, a Pakistan Foreign Ministry spokesperson confirmed that invitations would be extended to all heads of government, expressing hope that all SCO members would attend. India and Pakistan are the only SCO members where the Prime Ministers attend the Head of State Council, alongside the Presidents of other member countries—Russia, China, Iran, Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan, and newly inducted Belarus.

PM Modi Skips SCO Summit

  • Prime Minister Narendra Modi decided to skip the SCO Summit, reversing an earlier decision to attend. This decision avoided a direct meeting with Chinese President Xi Jinping.
  • Jaishankar read out Modi’s address, emphasizing respect for sovereignty, independence, and territorial integrity, and the need to combat cross-border terrorism, implicitly targeting Pakistan.
  • Modi’s speech called for a decisive response to terrorism financing and recruitment.
  • For further information refer article on 03/07/2024 – Jaishankar to represent India in place of Modi at SCO summit in Kazakhstan.

India, U.S. Share Goals on Ukraine and Middle East: U.S. Envoy

GS 2: International Relations- India-U.S.

Why is it in the news?

  • U.S. Ambassador to India Eric Garcetti stated that since the beginning of the Ukraine war, the U.S. has maintained continuous communication with India to hold Russia accountable.
  • He emphasized the shared goals in preventing the conflict from spreading, promoting Middle East stability, and establishing a future Palestinian state.
  • Further, Garcetti appreciated India’s humanitarian aid to Ukraine and the robust strategic partnership between the two nations.

Some of the key highlights:

  • Garcetti highlighted that both countries have been working together to impose consequences on Russia for its actions in Ukraine.
  • He expressed hope that India will continue to support the principle of sovereignty and collaborate in identifying companies fuelling Russia’s war effort.
  • While acknowledging India’s close ties with both Ukraine and Russia, he urged India to play a constructive role in achieving peace and warned Indian companies about the consequences of violating global sanctions.
  • Describing India as a crucial strategic partner, Garcetti mentioned the ambitious agenda to expand cooperation in various fields, including co-producing jet engines and increasing trade, which now exceeds $190 billion. He also noted the rising number of Indian students in the U.S., reflecting the deepening ties between the two nations.
  • On NATO presence, Garcetti clarified that there is no NATO presence in India and no request for one, although NATO members have a strong interest in a free and secure Indo-Pacific region. He pointed out that India conducts more military exercises with the U.S. than any other country, emphasizing the importance of Indo-Pacific security and India’s leadership role.

Brahmaputra’s lone female gharial’s long wait for a mate could end soon

GS 3: Environment and Biodiversity- Conservation

Why is it in the news?

  • A lone female gharial (Gavialis gangeticusin Kaziranga National Park and Tiger Reserve, Eastern Assam, is seen as crucial for repopulating the Brahmaputra River with gharials, a species believed to have been wiped out from the river system in the 1950s.

More about the news

  • Spotted first in 2021, the female, now almost an adult at 2.55 meters in length, has been recorded moving along a specific stretch of the river.
  • A recent survey by the Turtle Survival Alliance Foundation India (TSAFI) and the Assam Forest Department, covering a 160 km stretch of the Brahmaputra, identified the female gharial as the only one of its kind in the area. The survey also recorded 990 freshwater turtles of five species and over 80 other major aquatic species, including the Gangetic River dolphin.
  • The survey report recommends the high-priority reintroduction of gharials in the Brahmaputra, especially within the Biswanath Division, due to the suitable habitats and lack of fishing, ensuring ample food supply. If approved, the reintroduction program would source gharials from the Kukrail breeding centre in Uttar Pradesh.

Additional Information:

About Kaziranga National Park:

  • Location and Establishment:
  • Kaziranga National Park is situated in the Golaghat and Nagaon districts of Assam.
  • Established in 1905 as a reserve forest and declared as national park in 1974, it is also designated as a UNESCO World Heritage Site due to its ecological significance.
  • Vegetation:Kaziranga National Park features a diverse landscape comprising eastern wet alluvial grasslands, semi-evergreen forests, and tropical moist deciduous forests, with dense elephant grass, small swamplands, water lilies, water hyacinths, lotus flowers, and rattan cane contributing to its rich vegetation.
  • Fauna:
  • Notable wildlife includes the one-horned rhinoceros, Bengal tiger, leopard, fishing cat, various lesser cats, large Indian civet, small Indian civet, sambar, barking deer, hog deer, gaur, hog badger, and capped langur.
  • It is also home to the critically endangered Bengal florican and the western hoolock gibbon, India’s only ape species.
  • Avian Diversity: Kaziranga supports approximately 478 species of resident and migratory birds, adding to its biodiversity richness.

About Gharials:

  • Description and Classification: Gharials, also known as gavials, are a species of Asian crocodilians recognized for their long, slender snouts. They belong to the crocodilian group, which includes crocodiles, alligators, and caimans.
  • Species in India: India is home to three species of crocodilians:
  • Gharial (Gavialis gangeticus): Critically Endangered on the IUCN Red List.
  • Mugger crocodile (Crocodylus palustris): Vulnerable on the IUCN Red List.
  • Saltwater crocodile (Crocodylus porosus): Least Concern on the IUCN Red List.
  • All three species are listed on Appendix I of CITES and Schedule I of the Wild Life (Protection) Act, 1972, except for populations of the Saltwater Crocodile in Australia, Indonesia, and Papua New Guinea, which are on Appendix II of CITES.
  • Habitat of Gharials:
  • Natural Habitat: Freshwaters in the northern part of India.
  • Primary Habitat: Chambal River (a tributary of Yamuna).
  • Secondary Habitats: Ghagra, Gandak, and Girwa rivers (Uttar Pradesh), Ramganga River (Uttarakhand), and Sone River (Bihar).
  • Significance: The population of gharials serves as a crucial indicator of the cleanliness and health of river water ecosystems.
  • Conservation Efforts: Conservation efforts include breeding centers such as the Kukrail Gharial Rehabilitation Centre in Lucknow, Uttar Pradesh, and the National Chambal Sanctuary (Gharial Eco Park, Madhya Pradesh).
  • Threats: Threats to gharials include increased river pollution, dam construction, large-scale fishing operations, floods, illegal sand mining, and poaching.

Grave concern: On wild-type poliovirus type-1 cases in Pakistan, Afghanistan

GS 2: Health- Polio Virus Transmission

Why is it in the news?

  • The resurgence of wild-type poliovirus type-1 (WPV1) in Pakistan and Afghanistan poses a significant challenge to the global effort to eradicate polio by 2026.
  • In 2023, both countries reported six WPV1 cases each, indicating a decline from previous years but still highlighting persistent transmission. This year, early reports suggest an uptick with six cases in Afghanistan and five in Pakistan already recorded, raising concerns that 2023’s gains may be reversed.

More about the news

  • The World Health Organization (WHO) identifies “epidemiologically critical areas and historical reservoirs” such as Karachi, Quetta, Peshawar-Khyber blocks in Pakistan, and Kandahar in Afghanistan, as key hotspots.
  • The presence of positive environmental samples in these areas reflects gaps in achieving vaccination coverage, exacerbated by challenges like fake finger marking during vaccination campaigns.
  • While children in urban areas of Pakistan are largely immunized, pockets of unvaccinated or under-vaccinated children remain vulnerable. Notably, in 2023, two out of the six WPV1 cases are reported from Karachi, highlighting urban centres as focal points for virus transmission.
  • The situation in Pakistan appears particularly precarious, with a shift in WPV1 transmission observed from predominantly Afghanistan in 2022 to more cases detected within Pakistan in 2023 and 2024. This reversal underscores the need for intensified efforts to prevent further spread and achieve complete eradication.
  • Moreover, the risk of international spread remains grave, particularly to Afghanistan, due to the movement of over half a million Afghan refugees from Pakistan. Additionally, an estimated 0.8 million more refugees are expected to be evicted soon, further increasing the risk of cross-border transmission. Southern Afghanistan, with its large population of under-vaccinated children, is particularly vulnerable to imported cases from Pakistan.
  • Further, the efforts to combat WPV1 resurgence include bolstering vaccination campaigns, improving surveillance, and addressing systemic issues such as ensuring vaccine coverage reaches all vulnerable populations.

Conclusion

  • International cooperation and sustained efforts are crucial to overcoming these challenges and achieving the goal of global polio eradication by 2026.
  • For further information article on 03/07/2024 – The two vaccines that brought us to the brink of eradicating Polio.

Computer literacy in India needs a reboot

GS 2: Education- Computer Literacy

Why is it in the news?

  • Computer literacy in India, crucial for navigating today’s digital world, shows promising but uneven progress.
  • Defined as the ability to effectively use computers and technology, it plays a pivotal role in accessing essential services like banking, healthcare, and government functions, thereby enhancing quality of life.
  • The COVID-19 pandemic underscored its importance, highlighting the need for digital access for tasks ranging from online education to managing daily essentials.

An Analysis

  • Despite initiatives like the Digital India campaign launched in 2015 to promote digital empowerment, computer literacy rates vary significantly across demographics and regions.
  • The latest NSS survey (2020-21) reveals an overall computer literacy rate of 24.7% among individuals aged 15 and above, up from 18.4% in 2017-18. In rural areas, the rate rose from 11.1% to 18.1%, while in urban areas, it increased from 34.7% to 39.6%. These improvements are encouraging but indicate ongoing challenges, particularly in reaching rural populations where nearly 70% of India resides.
  • Age-wise disparities are pronounced, with higher literacy rates observed among younger age groups compared to older demographics. For instance, while individuals aged 20-24 show a computer literacy rate of 45.9%, this drops sharply to 4.4% among those aged 65-69(Cohort Effect). Such differences reflect accessibility issues and varying levels of exposure to computer education over different generations.
  • Regional disparities further complicate the landscape. States like Kerala lead with a high computer literacy rate of 72.7% among 20-39-year-olds, while economically disadvantaged states such as Assam lag significantly at 17.6%. This wide gap underscores the digital divide, affecting economic opportunities and access to modern development across states.

Challenges in Enhancing Computer Literacy:

  • Inadequate Infrastructure and Training:
  • Many schools and colleges lack sufficient infrastructure and trained teachers, hindering effective computer education.
  • This shortfall particularly affects young students and new graduates, limiting their employability in a digital job market.
  •  Barriers for Older Age Groups:
  • Older age groups often encounter challenges such as limited access to learning resources and a reluctance to adopt new technologies.
  • These barriers contribute to widening disparities in computer literacy across different age demographics.
  • Impact on Social Isolation and Financial Exclusion:
  • Gaps in access and quality of computer education in the formal education system lead to social isolation and financial exclusion from online services.
  • Individuals without adequate computer skills may struggle to access essential online services, engage in digital transactions, and participate in social interactions mediated by technology, perpetuating inequalities in societal engagement and economic inclusion..

Implications:

  • The implications of low computer literacy are profound. It restricts job opportunities, contributes to social isolation, and excludes individuals from participating fully in the digital economy.
  • As industries increasingly demand digital skills, those lacking computer literacy are at a disadvantage, perpetuating socio-economic inequalities.

Addressing these challenges:

  • Schools must prioritize equipping students with essential computer skills early on to bridge the digital divide.
  • Government initiatives should focus on improving infrastructure, expanding training programs, and ensuring equitable access to digital resources across all demographics and regions.
  • Efforts to empower older populations with computer literacy skills through targeted programs involving local institutions and NGOs are also critical.

Conclusion

  • While India has made strides in computer literacy, significant gaps remain. Addressing these gaps requires sustained efforts and investment in education, infrastructure, and skills development to ensure inclusive growth and empower all segments of society in the digital age.

Additional Information:

  • Government Initiatives
  • Digital India Campaign (2015):
  • Launched in 2015, the Digital India campaign by the Indian government aimed to digitally empower society and enhance digital infrastructure and services.
  • It has had varied impacts on computer literacy rates across the country, aiming to bridge digital divides and promote widespread digital access.
  • National Education Policy (2020):
  • The NEP 2020 emphasizes leveraging technology to deliver high-quality education universally.
  • It integrates digital education into the curriculum to foster digital literacy, critical thinking, and problem-solving skills among students regardless of their geographic location.

The Shape of a five-year climate agenda for India

GS 3: Environment and Biodiversity- Climate

Why is it in the news?

  • As India’s new government settles in, its approach to scaling up climate action will have profound implications across all sectors and ministries.
  • This period presents a pivotal opportunity to shape India’s economic trajectory in a sustainable manner, assert leadership for the Global South on international platforms, and advocate vigorously for climate finance and justice.

More about the news

  • Over the past decade, India has transitioned from a reactive participant in global climate efforts to a proactive leader. Initiatives like the International Solar Alliance, Coalition for Disaster Resilient Infrastructure, and the Global Biofuels Alliance illustrate India’s commitment to sustainable development.
  • Significant milestones include the adoption of a 2070 net-zero target and ambitious Nationally Determined Contributions (NDCs), emphasizing absolute emission reductions over relative intensity targets. The introduction of an Indian emissions carbon trading scheme further integrates sustainability into domestic economic policies.
  • Further, India’s strategy for the next five years should embody the principles of ‘go higher, go wider, go deeper’ to align climate leadership with economic prowess.

1) Go Higher:

  • India aims to host critical international climate summits, leveraging these platforms to secure global commitments such as halting new investments in oil and gas post-2030 and increasing adaptation finance for vulnerable countries.
  • Early diplomatic efforts and coalition-building are crucial to achieving these objectives by the time it hosts the United Nations Conference of Parties in 2028.

2) Go Wider:

  • Beyond the power sector, India will expand its focus to include sectoral emission reduction targets, such as zero-carbon mobility solutions for both urban and rural areas.
  • Setting clear targets for zero-emission vehicles can stimulate the clean energy job market, enhance mobility access, and drive economic growth.
  • The upcoming revision of India’s NDCs for 2035 presents an opportunity to deepen and broaden these targets across various sectors of the economy.

3) Go Deeper:

  • Enhancing sub-national climate action is essential for comprehensive climate resilience and adaptation.
  • Initiatives like the Council on Energy, Environment and Water’s collaborations with states like Tamil Nadu and Bihar on net-zero plans demonstrate progress.
  • Establishing a Centre-State coordination group and enhancing state-level capabilities in scientific modelling and data management will facilitate cohesive climate responses while respecting regional autonomy.

Conclusion

  • India’s new government must elevate its global climate leadership over the next five years by focusing on sustainable economic growth, resilient infrastructure, and equitable climate policies.
  • By strategically planning and actively engaging on international platforms, India can amplify its influence and drive impactful climate outcomes globally, ensuring a sustainable future for generations to come.

Additional Information:

India can enhance its global negotiations on climate change by:

  • Hosting International Climate Summits: India should aim to host a major international climate summit, such as the UN Conference of Parties (COP) in 2028, to showcase its climate leadership and set ambitious global agendas, similar to its successful G-20 Presidency.
  • Advocacy and Consensus Building: Starting early to build consensus on key climate issues, like ending new investments in oil and gas post-2030 and securing commitments for adaptation finance, through proactive engagement, alliances, and addressing global concerns.
  • Promoting Equity and Climate Finance: Continuing to emphasize equity in climate actions and advocating for fair treatment and enhanced finance mechanisms for developing countries, thus reinforcing India’s leadership role among Global South nations.

The Indian government has embarked on several initiatives to combat climate change, yet their impact is still under assessment:

  • National Action Plan on Climate Change (NAPCC): Launched in 2008 with eight national missions focusing on climate change adaptation, mitigation, energy efficiency, and conservation.
  • State Action Plans on Climate Change (SAPCCs): Developed by 33 states and union territories to address local climate challenges, though implementation and monitoring remain challenging.
  • Climate Change Research and Knowledge Networks: Supported research initiatives like Climate Change Modelling and Coastal Vulnerability networks to enhance understanding, yet their impact on policy remains under evaluation.

1.7     Should India review its Myanmar policy in view of the humanitarian crisis? 

GS 2: International Relations: India-Myanmar

Why is it in the news?

  • The conflict between ethnic armed organizations (EAOs) and Myanmar’s military junta has led to a severe humanitarian crisis, prompting calls for India to reassess its policy.
  • Experts advocate India to establish channels with EAOs to provide humanitarian aid and support affected civilians, amid growing regional instability.

Why does India’s policy towards Myanmar require course correction?

  • India’s traditional policy towards Myanmar has centred on maintaining cordial relations with the military junta while supporting democratic forces. However, since October 2023, there has been a significant shift.
  • Ethnic armed groups (EAOs) and the People’s Defence Force (PDF) in Myanmar have coordinated efforts to resist the military junta, marking a departure from previous uncoordinated resistance efforts. These groups now control approximately 45% of Myanmar’s territory, indicating their growing influence and capability.
  • This shift necessitates a review of India’s policy for several reasons:

1) The conflict in Myanmar has led to an influx of refugees into India, impacting border regions and necessitating a response from Indian authorities.

2) Many EAOs receive support from China, which also maintains good relations with Myanmar’s military junta. This dynamic underscore the strategic importance of Myanmar in the broader geopolitical context of Indian and Chinese influence in Southeast Asia.

3) EAOs controlling key trading routes between India, Myanmar, China, and Thailand further complicates the situation, affecting regional economic dynamics.

Are the EAOs so powerful that they deserve recognition by state actors such as India?

  • The increasing coordination and territorial control by EAOs raise questions about their legitimacy and recognition by state actors like India. Historically, India’s policy has focused on engaging with Myanmar’s central government, however, the evolving political landscape in Myanmar, with EAOs gaining significant ground against the military junta, necessitates reconsideration.
  • Experts points out that Myanmar’s political, military, and diplomatic stalemate suggests a need for a policy review. This includes:

1) Ensuring a balanced approach to Indian and Chinese influences in Myanmar is crucial for regional stability and India’s national interests.

2) Given Myanmar’s fragmented control, consultations with regional experts and neighbouring countries like Thailand, Bangladesh, and China are essential to promote stability.

How compelling is the humanitarian situation in Myanmar to merit a review of the traditional policy?

  • The humanitarian crisis in Myanmar is severe, compelling India to reevaluate its traditional policy.
  • There is an urgent need for humanitarian aid, including basic necessities like water, sanitation, and medical supplies. The influx of injured refugees highlights the lack of medical facilities and the urgency of intervention.
  • Providing humanitarian assistance can serve as a non-controversial means for India to engage with Myanmar, demonstrating goodwill and potentially influencing bilateral relations positively.
  • Engaging with Myanmar’s military junta to facilitate humanitarian aid can improve India’s image and contribute to regional stability.

Should India engage with all sections of Myanmar, including diverse ethnic groups and the National Unity Government (NUG)?

India’s engagement with diverse Myanmar stakeholders is crucial for several reasons:

  • The NUG is discussing the formation of a federal union that could potentially stabilize Myanmar’s political landscape. India’s involvement in these discussions can help shape outcomes that align with regional stability and Indian interests.
  • Engaging with diverse ethnic groups, such as the Kuki in the Northeast, can help mitigate risks of further fragmentation and conflict spill-over into Indian territories.
  • Dialogue with Myanmar’s military junta and non-state actors can facilitate peace-building efforts and promote sustainable development in the region.
  • While reconciliation with the military junta may be challenging, dialogue on federal structures and alliances within Myanmar is essential. India’s role in these dialogues can influence outcomes that support stability and development in Myanmar and the broader region.

Way Forward

  • Continuously engaging with Myanmar’s military government while emphasizing humanitarian concerns and the impact of instability on India.
  • Use India’s diplomatic leverage to advocate for humanitarian assistance and stability initiatives that benefit both countries.
  • Convey India’s commitment to Myanmar’s prosperity and regional peace through constructive engagement and strategic partnerships.

Additional Information:

  • Significance of India-Myanmar Relationship
  • Geopolitical Importance:
  • Gateway to Southeast Asia: Myanmar serves as a crucial land bridge linking South Asia to Southeast Asia, enhancing regional connectivity, particularly with India’s northeastern states.
  • Bay of Bengal Connectivity: Shared maritime boundaries in the Bay of Bengal facilitate economic and strategic collaboration, fostering opportunities for maritime cooperation.
  • Regional Power Balancing: A strong relationship with Myanmar helps India mitigate potential regional power imbalances, particularly countering China’s influence in the region.
  • Strategic Significance:
  • Strategic Neighborhood: Myanmar’s large size and strategic location impact neighboring countries like China, Laos, Thailand, Bangladesh, and India.
  • Neighborhood First Policy: India’s approach under its “Neighborhood First” policy emphasizes building a cooperative and mutually beneficial relationship with Myanmar.
  • Act East Policy: Myanmar plays a pivotal role in India’s Act East Policy, aimed at enhancing economic, strategic, and cultural ties with the Asia-Pacific region.
  • Multilateral Engagement: Myanmar’s membership in regional bodies like SAARC, ASEAN, BIMSTEC, and Mekong Ganga Cooperation adds a multilateral dimension to bilateral relations, aligning with India’s broader Act East Policy objectives.

‘Divesting upto 49% stake in central PSUs could yield ₹11.5 lakh crore’

GS 3: Economy- CPSEs

Why is it in the news?

  • According to Care Edge Ratings, the Indian government could potentially raise ₹11.5 lakh crore by divesting up to 49% stake in central public sector enterprises (CPSEs).
  • Analysing 59 major listed CPSEs along with 15 public sector banks and insurance firms, Care Edge economists identify CPSEs contributing around ₹5 lakh crore and PSBs/insurance firms potentially adding ₹6.5 lakh crore to the divestment pool.
  • This estimation is based on current market capitalization levels, allowing the government to retain majority control while generating substantial funds through disinvestment.

What is Disinvestment?

  • Definition: Disinvestment involves the government selling its stake in public sector enterprises to strategic or financial buyers through share sales on exchanges or direct transactions.
  • Purpose: The funds generated from disinvestment are utilized to finance social and infrastructure projects and to reduce the government’s fiscal deficit.
  • Approaches:
  • Minority Disinvestment: Government retains >51% stake for management control.
  • Majority Divestment: Government transfers control, retains significant stake.
  • Complete Privatization: 100% ownership and control transferred to buyer.
  • Process in India:
  • Managed by Department of Investment and Public Asset Management (DIPAM) under Ministry of Finance.
  • DIPAM oversees disinvestment, manages government equity in public sector enterprises.
  • The proceeds from these sales often contribute to the National Investment Fund (NIF) (established in 2005), which channels funds from disinvestments of Central Public Sector Enterprises into designated projects.

Some of the key takeaways

  • Despite favourable market conditions, the government is unlikely to aggressively pursue disinvestment in the current fiscal year.
  • The fiscal situation remains comfortable, bolstered by strong non-tax revenues from dividends and spectrum auctions. The target for miscellaneous capital receipts, including divestment, is set at 500 billion for 2024-25, with cautious optimism towards divesting firms like Shipping Corporation of India, Pawan Hans, and CONCOR.
  • The report highlights persistent challenges in achieving divestment targets over the past five years, citing financial market volatility, litigations by labour unions, procedural delays, and pricing concerns as impediments. While recent efforts have relied on the Offer for Sale route, substantial proceeds may require larger-scale divestments.

DPIIT takes expert advice from IMF on PPI methodology

GS 3: Economy- Producers Price Index (PPI)

Why is it in the news?

  • The Department for Promotion of Industry and Internal Trade (DPIIT) is finalizing the model for the Producers Price Index (PPI), a benchmark widely used among G20 countries, with guidance from experts at the International Monetary Fund (IMF).

More about the news

  • According to DPIIT Secretary Rajesh Kumar Singh, consultations with the Ministry of Statistics and Programme Implementation (MoSPI) have been completed, while procedural consultations with the National Statistical Commission (NSC) are pending before the model is presented to higher authorities.
  • During the transition, both the Producers Price Index (PPI) and Wholesale Price Index (WPI) will coexist. He indicated that while there is a preference for PPI in the long term due to its coverage of services and exclusion of indirect taxes, a definitive decision on phasing out WPI is yet to be made.
  • PPI calculates the average price change received by producers, excluding indirect taxes, while WPI tracks price changes at wholesale transaction points, potentially including taxes and distribution costs up to the wholesale stage.
  • Regarding potential changes to the Wholesale Price Index (WPI) base year, Secretary Singh acknowledged government deliberations, including proposals to update the base year from 2011-12 to 2017-18. This proposed update includes adding approximately 480 new items such as medicinal plants, pen drives, lifts, gymnasium equipment, and motorcycle engines, aiming to present a more accurate portrayal of the country’s price dynamics.
  • Currently, both WPI and Consumer Price Index (CPI) are pivotal in monitoring price movements in India. While WPI focuses on goods’ price movements in wholesale markets, CPI tracks inflation at the retail level, encompassing certain services in its calculations.

Additional information:

About National Statistical Commission (NSC):

  • Formation: The Government of India set up the National Statistical Commission (NSC) through a resolution on June 1, 2005 based on the recommendations of the Rangarajan Commission, which reviewed the Indian Statistical System in 2001.
  • Present Status of the NSC:
  • Composition:
  • The NSC consists of a part-time Chairperson, four part-time Members, and an ex-officio Member.
  • Each member has specialization and experience in specified statistical fields.
  • The Chief Statistician of India serves as the Secretary of the Commission and is also the Secretary to the Government of India in the Ministry of Statistics and Programme Implementation.
  • Mandate:
  • To evolve policies, priorities, and standards in statistical matters.
  • To improve the data quality in statistical products and processes.
  • To work closely with statistical agencies in the central and state governments to ensure the implementation of these standards.
  • Role: The NSC is a recommending body that aids the national statistical system in developing better strategies to enhance its functioning.

Difference Between WPI and CPI:

  • The Wholesale Price Index (WPI) tracks inflation at the producer level, measuring the average change in prices received by producers over time for goods only. In contrast, the Consumer Price Index (CPI) captures changes in price levels at the consumer level, including both goods and services that households purchase.
  • While historically significant, WPI is no longer used by the Reserve Bank of India (RBI) for policy purposes such as setting repo rates; instead, RBI relies on CPI, which reflects consumer inflation, for monetary and credit policy decisions.
  • WPI gives more weightage to manufactured goods, while CPI places greater emphasis on food items.
  • The base year for WPI is 2011-2012, while CPI uses 2012 as its base year.

SDGs-National Indicator Framework (NIF) Progress Report, 2024

GS 2: Society- SDGs

Why is it in the news?

  • The Ministry of Statistics and Programme Implementation (MoSPI) on the occasion of 18th Statistics Day, on 29th June 2024 has released the 2024 Progress Report on the Sustainable Development Goals (SDGs) National Indicator Framework (NIF), in collaboration with various ministries, UN agencies, and stakeholders.
  • This annual report serves as a crucial tool for tracking the nation’s advancement towards the 2030 Agenda for Sustainable Development, which encompasses 17 SDGs and 169 associated targets.

What is Sustainable development:

  • Definition: Sustainable development is defined as “development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” This widely accepted definition was provided by the Brundtland Commission in its 1987 report, Our Common Future.
  • Key Principles:
  • Inclusivity: Ensuring all segments of society benefit.
  • Sustainability: Maintaining ecological balance and conserving resources.
  • Resilience: Building systems and communities that can withstand and adapt to challenges.
  • Objective: To create a harmonious balance between economic growth, environmental protection, and social well-being.

2030 Agenda for Sustainable Development:

  • In September 2015, during its 70th Session, the United Nations General Assembly adopted “Transforming our World: The 2030 Agenda for Sustainable Development.”
  • This landmark document outlines 17 Sustainable Development Goals (SDGs) and 169 associated targets, which took effect on January 1, 2016.
  • The 2030 Agenda emphasizes the importance of global partnerships and collaborative efforts involving governments, UN agencies, the private sector, civil society, and the public.
  • These efforts aim to ensure prosperity, peace, and a sustainable planet for current and future generations.

About National Indicator Framework (NIF):

  • India is committed to implementing the Sustainable Development Goals (SDGs) through nationally defined indicators that align with its own priorities and needs.
  • To integrate SDGs into national and sub-national policies and programs, NITI (National Institution for Transforming India) Aayog has aligned the SDGs with centrally sponsored programs across various Central Ministries and Departments.
  • To support this effort, the Ministry of Statistics and Programme Implementation (MoSPI) developed a National Indicator Framework (NIF) for SDGs.
  • Initially, the NIF comprised 306 national indicators, created through detailed consultations with relevant Ministries, UN Agencies, and other stakeholders.
  • As of June 29, 2024, the NIF includes 290 national SDG indicators.
  • MoSPI coordinates with Ministries and Departments to collect data on these indicators.

Key highlights from the SDG-NIF report:

  • No Poverty (SDG Goal): The proportion of men, women, and children living in poverty has significantly decreased from 24.85% in 2015-16 to 14.96% in 2023-24.
  • Zero Hunger (SDG Goal): Gross Value Added in agriculture per worker has risen from ₹61,427 (2015-16) to ₹87,609 (2023-24), reflecting enhanced productivity and economic growth in the agricultural sector.
  • Gender Equality (SDG Goal): The percentage of exclusive women Self-Help Groups (SHGs) within bank-linked SHGs has increased to 97.53% (2023-24) from 88.92% (2015-16), demonstrating improved financial inclusion and empowerment.
  • Clean Water and Sanitation (SDG Goal): The percentage of rural population using improved drinking water sources has risen from 94.57% (2015-16) to 99.29% (2023-24), indicating enhanced access to clean water.
  • Reduced Inequalities (SDG Goal): Allocation of the budget for the welfare of Scheduled Castes (SCs) and Scheduled Tribes (STs) has increased from 2.86% (2015-16) to 6.19% (2023-24), highlighting efforts towards reducing socioeconomic disparities.
  • Sustainable Cities and Communities (SDG Goal) : The percentage of wards with 100% door-to-door waste collection has surged from 43% (2015-16) to 97% (2023-24), promoting cleaner and more sustainable urban environments.

Additionally, significant progress has been noted in other SDGs:

  • Health and Well-being (Goal 3): Maternal Mortality Ratio has declined from 130 per 1,00,000 live births in 2014-16 to 97 in 2018-20, and the under-five mortality rate has decreased from 43 per 1000 live births in 2015 to 32 in 2020, indicating improvements in healthcare outcomes.
  • Quality Education (Goal 4): Gross Enrolment Ratio in higher secondary education has increased from 48.32 in 2015-16 to 57.60 in 2021-22, reflecting strides towards achieving inclusive and quality education for all.
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