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Himalayan griffon and steppe eagle: Vulture holocaust in Assam: Around 100 birds die due to ‘unintentional’ poisoning in Kamrup

What is the news?

Recently, locals found the dead bodies of more than 95 Himalayan griffon vultures and a steppe eagle in Assam. The cause of death of the vultures according to the postmortem report was found to be pesticide poisoning.

Farmers spray the carcasses of cattle with pesticides (carbofuran) to kill the dogs.

About Himalayan griffon vultures

Source: eBird

The Himalayan Griffon Vulture is an Old World vulture in the family Accipitridae, which also includes eagles, kites, buzzards and hawks. It is closely related to the European Griffon Vulture, G. fulvus.

Old World vultures are vultures that are found in the Old World, i.e. the continents of Europe, Asia and Africa.

  • Scientific Name: Gyps himalayensis
  • Conservation Status:
    • IUCN Red List: ‘Near Threatened’
  • Distribution:
    • It lives mainly in the higher regions of the Himalayas and the Tibetan Plateau at an elevation of above 1500 metres.
    • This species is distributed from western China, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Afghanistan and Pakistan.
    • It is also found in the Central Asian mountains (from Kazakhstan and Afghanistan in the west to western China and Mongolia in the east).
  • Characteristics:
    • This vulture is a typical vulture, with a bald white head, very broad wings, and short tail feathers. It has a white neck ruff and yellow bill, and the whitish body and wing coverts contrast with the dark flight feathers.
    • They have usually seen singly or in small groups but they gather in large flock at a carcass.
  • Threats: The most serious potential threat to this species is thought to be mortality caused through ingestion of diclofenac and other vulture-toxic non-steroidal anti-inflammatory drugs (NSAIDs) widely used in livestock, particularly in South Asia.

About the steppe eagle

Source: The Hindu

The steppe eagle is also a migratory bird that comes to Assam during winters from different countries, including African ones.

  • Conservation status:
    • IUCN Red List: Endangered

Earlier steppe eagle was listed as ‘Least Concern’ in IUCN Redlist.

  • Distribution: It breeds in Russia, Kazakhstan, and Mongolia during winter.
  • Characteristics: They feed on small mammals, birds, reptiles and insects. Immature birds have been noticed taking carcasses of these.
  • Significance: It is the second-largest migratory eagle species coming to India.
  • Threats: Habitat loss/degradation, electrocution on/ collision with energy infrastructure, poisoning through herbicides/ pesticides/ veterinary drugs in food sources, etc.

Source: This post is based on the article “Vulture holocaust in Assam: Around 100 birds die due to ‘unintentional’ poisoning in Kamrup” published in Down To Earth on 19th March 2021.

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Entrance test for central universities: how, why

What is the News?

University Grants Commission(UGC) has announced the introduction of the Central University Entrance Test(CUET) which is now mandatory for undergraduate admission at any of the 45 central universities in the country.

Background

​​Several governments have made attempts to replace multiple entrance tests with a single one to reduce the burden on higher education aspirants. 

  • In 2010, Central Universities Common Entrance Test (CUCET) was introduced, but it failed to gather steam since only 14 central universities had adopted it until 2021.
  • Now, the Central University Entrance Test(CUET) has been announced.

What is the Central University Entrance Test(CUET)?

  • It is a mandatory common entrance test for undergraduate admission at any of the 45 central universities in the country.
  • The tests will be conducted by the National Testing Agency(NTA).
  • It will be a computer-based test that will be held in two shifts and can be taken in 13 languages.
  • The test will only have multiple-choice questions based on the content of NCERT textbooks.
  • The admission to a college or a programme will be based only on CUET score. At best, colleges can use Class 12 Board marks as the minimum eligibility criteria for admission.

What is the significance of this CUET?

Firstly, as far as Delhi University is concerned, sky-high cut-off marks will not be there. A student’s Board marks will have no role in determining his/her admission to a college or a programme. It will be based only on the CUET score.

The government did not favour using Board marks for admission because of the “diversity” in evaluation methods adopted by different Boards. 

Secondly, it will provide equal opportunities to students from the Northeast and rural India. In addition to this, it will help parents of poor students as they will not have to pay for appearing for several entrance exams.

Source: The post is based on an article “Entrance test for central universities: how, why” published in the Indian Express on 22nd March 2022. 

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ESA scratches ExoMars 2022 launch for this year after suspending cooperation with Russia Roscosmos

What is the News?

The European Space Agency’s(ESA’s) ExoMars 2022 mission will not be launched in September 2022 as planned after the agency suspended all cooperation with Russia’s space program Roscosmos.

What is the purpose of the ExoMars Mission?

Aim: To check if there has ever been life on Mars and also understand the history of water on the planet.

Stages: It is a two-stage mission:

  • First Stage: Its first mission launched atop a Proton-M rocket in 2016 and consisted of the European Trace Gas Orbiter and test lander called Schiaparelli. The orbiter was successful, while the test lander failed during its descent to Mars.
  • Second Stage: It comprises a rover and surface platform: This second part of the mission was originally planned for July 2020. But it was postponed until this September due to technical issues.

About the collaboration in ExoMars Mission?

  • ESA and NASA were the original ExoMars collaborators, but NASA dropped out in 2012 due to budgeting problems. Russia took NASA’s place in the project in 2013.
  • Now, the ESA has suspended all cooperation with Russia’s space program Roscosmos. This means that ESA now needs to reconfigure the ExoMars mission, as it uses a number of Russian-made components.

Source: The post is based on an article “ESA scratches ExoMars 2022 launch for this year after suspending cooperation with Russia Roscosmos” published in the Indian Express on 22nd March 2022

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Adaptive tracking

What is the News?

Researchers have conducted an experimental study of Drosophila melanogaster or fruit fly to study adaptive tracking.

What is Adaptive Tracking?

  • Adaptive Tracking is defined as continuous adaptation in response to rapid environmental change. 
  • Adaptive tracking is known to be the critical mechanism by which living beings continue to thrive in a changing environment, but little is known about the pace, extent and magnitude of adaptive tracking in response to a changing environment.

About the study

  • Researchers conducted experiments on 10 independent replicate populations of fruit flies with each being a group of up to 1,00,000 individuals. 

The fruit fly is the preferred animal model for many experimental studies of evolution because it is relatively easy to breed and maintain, and multiplies rapidly, allowing many generations to be studied in a short time. 

  • These fruit flies were exposed to a changing season from July-December in 2014, and monthly measurements were made. 
  • The researchers found that flies were evolving, adapting to their environment, and they were doing so faster than anyone had ever measured before.

What is the significance of this study?

  • It is a common belief that evolutionary changes take place at a much slower pace than ecological change. 
  • However, this is not completely true, and this experimental study has shown that the pace of adaptation can match that of environmental and seasonal changes. 

Source: The post is based on an article “Adaptive tracking” published in The Hinduon 21st March 2022

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The pandemic’s income inequality surprise

What is the News?

Recently, a study was done for analysing the changes in the poverty and income inequality in India due to the Covid-19 pandemic.  

What has been the impact of Covid-19 Pandemic? 

  • Macro level: Indian GDP fell sharply during the lockdown. It largely witnessed V-shaped recovery after the lockdown. 
  • Micro-level: During the lockdown: the poverty (income below $1.90) rose from 7.6% in November 2019 to 50.5% in April 2020, and the overall, income inequality also increased in India by 25% and 15% in urban and rural areas respectively.  
  • After the lockdown: a) the poverty began to decline, but did not return to the pre-pandemic levels, and (b) income inequality declined after the lockdown to below pre-pandemic levels. 

What were the causes behind decline in the income inequality?  

  • In general, the change in a person’s income can be the result of two factors: 
    • (a) The movement of a household from one income group to the other income group which normally refers to social mobility, and 
    • (b) change in the Gini coefficient which refers to the distribution of the income between different income group. 
  • In India, income inequality was reduced mostly due to the factor of social mobility. It is because the Gini-Coefficient was not much contributory to it.
    • It is because India returned to the pre-pandemic level of Gini-Coefficient after the lockdown. The Gini coefficient was 0.4 before the pandemic erupted. 

What is the way forward?

  • There is no clear pattern between growth or poverty on the one hand, and inequality on the other.
  • Therefore, the government should focus on growth and poverty instead of inequality, as it is difficult to be eliminated.

Source: This post is based on the article “The pandemic’s income inequality surprise” published in The Indian Express on 22nd Mar 22.

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Amid Ukraine crisis, India does well to deepen ties with Australia and Japan, draw red lines vis a vis Beijing

What is the News?

  • The Chinese Foreign Minister attacked QUAD members.
  • He mentioned that “No country should pursue its so-called absolute security at the expense of other countries’ security”.
  • He stated this in wake of Indian Prime Minister (PM) Narender Modi’s summit-level meetings with the prime ministers of Japan and Australia. 

Accusation made by China on the west 

  • China referred to the present situation in Ukraine and claimed that the present situation is the result of “the  NATO strategy of eastward expansion”.
  • In fact, China has caused several provocations in the Indo-Pacific.  

Why the accusations of China are wrong?  

  • In reality, China has itself become assertive in the Indo-Pacific region. It is asserting at the “expense of other countries’ security”.  
  • The US forces and its allies have been present in the Indo-Pacific region since the end of the Second World War.  
  • Moreover, the Quad is not a military alliance. It is not like NATO. In fact, It is a response to assertive nature of China in the Indo-Pacific region.
    • For example, China is occupying islands and trying to control sea lanes in the Indo-Pacific. It is also carrying out activities along the Line of Actual Control (LAC) with India.  
  • Both, China and Russia have entered into a “no-limits” partnership.
    • They have effectively created an alliance in which they would back each other’s plans in Ukraine and Taiwan.
    • In other words, China is doing what it is accusing the West in the Indo-Pacific.  

What is the way forward?

  • Both India and Japan have rightly deepened their bilateral economic cooperation and strategic convergence.
    • For example, Japan will invest about $4.2 billion over five years 
  • Australia is likely to unveil new projects and investments in India. 
  • India should hold diplomatic engagements with Beijing.
    • In fact, India has stated its stand that the Chinese activities on its borders or in the Indo-Pacific thwarts the smoothening of India-China relationship.  

Source: This post is based on an article “Amid Ukraine Crisis, India does well to deepen ties with Australia and Japan, draw red lines vis a vis Beijing” published in the Indian Express on 22nd March 22 

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Russia’s offer of cheaper oil is tempting, but India must be cautious

What is the News?

Global crude oil prices have now risen above $100 a barrel due to the Russia-Ukraine Conflict 2022.  

Impact of high crude prices on India 

  • Indian government is under tremendous pressures. It has to spend twice as much to import oil. It cannot pass on these high oil costs to consumers, and will have to bear these costs.
  • This can severely hamper the government’s ability to spur the economy through increased capital expenditure.  
  • Russia has offered to sell oil at lower prices to India.

What can be the consequences of India accepting the Russian offer? 

  • Russia’s offer is tied with some hidden costs for India. It may be similar to the situation when the IMF offered help to India based upon some conditions that included India to adopt measures for economic reforms in 1991.   
  • The US has cautioned India against buying Russian oil. It may lead to secondary sanctions against India for buying discounted Russian oil. 
  • The US may be antagonized due to the cascading de-dollarization phenomenon. It is because India cannot not buy Russian oil using US dollars. So, Russia may insist on payment in rubles. Similarly, China, which is the second-largest trading partner of India, may also insist on payments in Chinese yuan.  
  • India may also become the centre of geo-economic war as a result of the cascading de-dollarization phenomenon. 

What is the way forward?

  • Exports remain India’s biggest hope at present. It is because India is facing weak domestic demand, lack of private investment and fiscal bottlenecks to government expenditure. Therefore, it can lead to a long-term sustainable economic recovery, job creation and also address problems arising out of high crude prices at present 
  • The Russia-Ukraine conflict can be an opportunity for India. India can step up and capture global market share in goods and services.
    • For example, India is looking forward to capitalising on wheat exports amid the global sanctions against Russian wheat.  
  • India should equally negotiate with its trading partners i.e., the US, Russia, China and others for its best possible National interests. It is because the US and China are India’s largest trading partners. And, The Russia-Ukraine conflict has reshaped the world order. Now, there are two axes, i.e., the US and its allies v/s China and Russia.  

Source: The post is based on an article “Russia’s offer of cheaper oil is tempting, but India must be cautious” published in the Indian Express on 22nd Mar 22. 

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When West Weaponizes Sanctions

What is the News?

Recently, the Indian PM pointed towards the domestic political stability in the face of external threats and challenges like global conflict, instability and mounting inflationary pressures.

Consequences of the ongoing Russia-Ukraine Conflict and the economic sanctions 

  • The military campaign in Ukraine has destabilised the European security order. The western economic sanctions on Russia are destabilising the global economic order 
  • Due to the ongoing crisis, India and developing countries are going to pay a heavy price.
    • The unintended consequences may range from rising commodity prices to shrinking markets, from devalued currency to fiscal constraints at home.   
    • India is also facing challenges of rising price of oil, gas, coal, fertilisers and vegetable oils.  
  • The developing economies are already facing risk of another wave of COVID-19. If it comes, it may slow down the global trade and the movement of people across the world.  

What measures can be taken to address the situation?

Short Term 

  • It is in everyone’s interest that a ceasefire be immediately declared by Russia.
  • It is also equally in global interest that the US and EU step back from the reckless attempt to weaponize global economic links.  
  • There is a need to focus on inflation control, employment generation, external economic & security challenges and internal social and political stability. 

India:

  • India has very well resisted US pressure on Indian purchase of Russian oil. India cannot afford to ignore low-cost options considering India’s external dependence in oil and gas. 
  • India has the opportunity to discuss common issues important for India and the global south in the upcoming G20 Summit next year (India to host). These issues are related to the comprehensive national power through the building of economic, social and human capabilities 
  • The “neighbourhood first” should be India’s foreign policy priority. There is a need to improve India’s relations with its neighbourhood. Stability and peace in our neighbourhood should be part of our strategy for building comprehensive national power. For example, India has renewed ties with Sri Lanka.

Long Term 

Sustained economic growth is needed to generate the revenues needed to fund the welfare programmes. 

  • India would have to grow at 9% per annum over the next five years so that India can grow from the current level of $2.7 trillion to $5 trillion economy by 2022.
  • India needs to expand its nuclear and renewable energy programmes to reduce India’s external energy dependence.
  • India’s RuPay card can be promoted both at home and abroad. It can insure against potential threats to the SWIFT system.

Source: The post is based on an article “When West Weaponizes Sanctions” published in the Business Standard on 22nd Mar 22. 

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Sri Lanka’s aggravating economic crisis

What is the News?

Sri Lanka’s economic crisis is aggravating rapidly, putting citizens through enormous hardship. Sri Lanka’s Consumer Price inflation is at 16.8%, and it must repay foreign debt totalling nearly $7 billion this year.

Reason for the crisis

Ever since the start of the pandemic, 

  • 1) Sri Lankan labourers in West Asian countries were left stranded and returned jobless, 
  • 2) Garment factories and tea estates were shut and youths lost their jobs in cities.
    • This hit all key foreign exchange earning sectors, such as exports, remittances and tourism, in Sri Lanka.
  • 3) Lack of a comprehensive strategy: This includes decisions such as an abrupt shift to organic farming, harsh import restrictions that led to market irregularities and hoarding.

How India is helping to avert the Sri Lankan economic crisis?

Beginning January 2022, India has extended assistance totalling $2.4 billion — including an $400 million RBI currency swap, a $500 million loan deferment, and credit lines for importing essential commodities such as food, fuel, and medicines.

What are the concerns raised with India’s assistance?

A Sri Lankan media depicted India’s emergency financial assistance as “diplomatic blackmail” for crucial energy projects. There is a suspicion in Sri Lanka that India’s assistance in the past was “tied” with key infrastructure projects. Such as Trincomalee Oil Tank Farm project; the National Thermal Power Corporation’s recent agreement with Ceylon Electricity Board to set up a solar power plant in Sampur and two renewable energy projects in northern Sri Lanka.

Source: The post is based on an article “Sri Lanka’s aggravating economic crisis” published in The Hindu on 22nd March 2022.

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Changing the jurisprudence of scarcity 

What is the News?

The Prime Minister’s recently made observation about the plight of the Indian medical students returning from Ukraine is on point. 

Why are problems being faced in the education sector? 

  • States are demanding reservation higher than 50%. It is demanded because most of the state’s population is eligible for reservation and goes beyond 50%.  
  • For the political parties, higher reservation serves social justice and also leads to electoral benefit. 
  • Rising new demands for reservation like preferences to students of rural schools, students of State Board schools, etc.
    • For example, Tamil Nadu’s attempt to secure a 7.5% preference for governmental school students.  
  • The demand for reservation arises due to the shortages in education or scarcity of seats. For example, 16 lakh candidates compete for 88,000 MBBS seats in the National Eligibility-cum-Entrance Test. 

What are the judiciary’s views?

  • Judiciary in the Balram (1972), Indra Sawhney(1992) and Maratha reservation (2021) cases has enunciated the principle of 50% reservation.
  • The Supreme Court believes that the reservations are an exception to the rule of equality, and cannot exceed the norm of 50%. 

How these issues can be addressed?

  • There should be a legal right for Indians to have a medical education system. It should be accessible and affordable.
    • For example, the right to health and to a good education is part of the right to life (Article 21), under our expanded conceptualisation of Fundamental Rights. 
  • The education system should be expanded. It should be able to accommodate the youngsters who want to make this their profession.  
  • The government should facilitate investment. It should promote employment of the talent. It should work to provide quality infrastructure in the education field.  
  • The fee/pricing policy should be rationalized, and seats should be increased as the students are willing to pay.  
  • There is a need for reform in the education related policies. There should not be unreasonable and unnecessary restrictions in the education field.
    • For example, presently only trusts or societies provide education. Such restrictions drive the commercials into the black market.  
  • The policy reforms should allow the market forces to operate. The demand and supply equilibrium will lead to benefits of pricing and quality.  
  • The government can restructure tax benefits. It can make it viable to start and run medical colleges. Allow minority institutions too to avail the benefits of Section 80G of the Income Tax Act for donations to its college.  
  • Providing scholarship should be made mandatory as the social commitment upon the institution.  
  • The government should bring policies which keep into consideration reservation, total and partial scholarships. Such a policy should allow the institution to run with freedom and make a reasonable profit.  
  • The government should focus on running its own colleges better.  

Source: The post is based on an article “Changing the jurisprudence of scarcity” published in the Hindu on 22 March 2022  

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A solution in search of a problem: on 10% reservation

What is the News?

The Government passed 103rd Constitutional Amendment Act creating a 10% reservation for economically weaker sections (EWS), for those, who have an income threshold of Rs. 8 lakh per annum. This article discusses potential implication of the EWS Amendment, followed by some alternatives:

Issues with the amendment

  • Excludes no one:
    • As per India Human Development Survey (IHDS), the annual household incomes of 98% houses are less than 8 lakh.
    • Other exclusion criteria applied (e.g. amount of land owned and size of home), the Amendment still covers 95% of households.
  • High costs to other reserved categories:
    • The Amendment removes 10% jobs from “open” category i.e., which can be taken by anyone – SC, ST, or OBC. Hence, it reduces opportunity for the reserved groups.
    • It can also lead to a demand for more reservation as the amendment breaches the 50% limit.
  • Getting caste certificates:
    • As a large number of SC/ST/OBC households report difficulties in obtaining these certificates.
    • A few non-reserved individuals also get fake certificates.
  • Specialized fields: 
    • Skill demands are rapidly outpacing supply of candidates in specialized fields. In such cases, the compulsion to select a candidate from a particular category including EWS, acts as a restraint.

Need for redesigning reservations

  • Spreading the benefits: 
    • This can be done within the existing framework and ensure that individuals use their reserved category status only once in a lifetime.
    • This would result in spreading the benefits broadly within the reserved community and more upward mobility.
  • Focus on skilling:
    • To ensure that citizens regardless of caste, class, or religion are able to participate in the economic growth.
    • For example, IHDS data shows that at Class 1 level – 68% of forward class students can read, 56% OBC, SCs (45%), STs (40%). Thus, there is a need to target such inequalities.

Source: This post is created based on the article “A solution in search of a problem: on 10% reservation” published in The Hindu on 22nd March 2022.

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Whither unemployment benefits

What is the News?

  • As per Centre for Monitoring Indian Economy, the average urban unemployment rate remained 9% in 2021.
  • Before COVID the unemployment rate touched its peak in 2017-18 at 6.1%, with urban unemployment as high as 7.8%. This was further exacerbated by the pandemic.
  • As per Centre for Monitoring Indian Economy, the average urban unemployment rate remained 9% in 2021.

What are measures available for assistance of  unemployed?

  • The Employee State Insurance Act, 1948 – Covers unemployment due to closure, retrenchment or permanent invalidity. This provides relief to those who have made contributions for two years to ESI.
  • Atal Beemit Vyakti Kalyan Yojana (ABVKY, 2018) – in this unemployed insured persons are provided allowances.
  • Industrial Disputes Act, 1947 – Industrial establishments employing 100 or more workers must pay retrenchment compensation to workers. Employment intensive industries like construction and services are excluded.
  • Social Security Code, 2020 – This included unemployment protection in its definition of ‘social security’ but it did not provide a scheme for the same.

Unsuccessful Schemes

  • Annual Reports of Employee State Insurance Corporation reveal that only 0.043% of employees availed of unemployment allowance from 2007-08 to 2019-20.
  • Under ABVKY – From July 2020 to June 2021, only approx 45,000 people benefitted with an average daily cash relief of Rs. 148.

Hence, the government cannot solely rely on these schemes.

What can be done?

During the pandemic, MGNREGA played a significant role in providing relief to millions of workers. Economists have shown that relief to workers does not cause much as a proportion of GDP. Hence, an urban employment guarantee scheme should be framed to alleviate the sufferings of workers in the urban labour market.

Source: This post is created based on the article “Whither unemployment benefits”, published in The Hindu on 22nd March 2022.

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One nation one software

What is the News?

National Generic Document Registration System can be helpful in dealing with the land records related issues.

The Constitution of India is imbued with a federal vision.

The 7th Schedule provides for 3 lists

  • “Union List” – defines the area of work for the Union government.
  • “Concurrent List” – here both Union and State can make laws. However, the Constitution gives primacy to the Union.
  • “State List”, where legislative powers lie with the state governments, and the role for the Union is only one of giving advice and money.

These lists are created based on the “subsidiarity principle”, which asserts that every task of the state should be done at the lowest possible level of government. At the same time, as One nation, a certain degree of uniformity assists economic modernization, helps connect globalization, and harnesses economies of scale.

Issues with “Land” as a subject

Land is the most important asset class in all countries. Better economic efficiency in the use of land will yield big gains in GDP. Despite this, there are issues in land management in India. Such as:

  • 1. Poor land records (State Subject): The information with the government suffers from data quality issues, a backlog of contested claims, and lack of integration/consistency across multiple departments of local government.

To deal with this, The Union Government launched the (Digital India) Land Record Modernisation Programme (DI-LRMP) in 2008, with a view to augmenting resourcing into computerising land records, integrating registration with the land records maintenance system, and integrating textual and spatial data.

  • 2. Presently, there is a tricky mix of a state subject (land) with a concurrent subject (registering property deeds). The Registration Act, 1908 – is the primary one on the subject of registering documents. As this is on the Concurrent List, there are many state-specific amendments to this Act.

To deal with this, the National Generic Document Registration System (NGDRS) was launched in 2016 under the umbrella of DI-LRMP.

Benefits of NGDRS

  • It is a generic, scalable, and flexible software that links all the stakeholders in the registration process. Its design allows states to configure the software to local needs/requirements.
  • It can link land records databases to financial institutions, revenue offices, income tax, the Unique Identification Authority of India, etc., thus bringing a new level of transparency to land holdings.
  • It facilitates swift registration and delivery of documents.
  • It has many features to accommodate state-specific requirements, including a database of properties that are restricted for transfer, like tribal land, government land and mortgaged land.

These are important developments in the field of land. Policymakers at the city and state levels, and the Union government, need to continue to think and innovate in this difficult field. Alongside the objective of achieving frictionless transactions and reducing disputes, focus should also be on data privacy.

Source: This post is created based on the article “One nation one software” published in Business Standard on 22nd March 2022.

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Heavy taxes are fine for quasi-assets like crypto

What is the News?

  • The government seems ready to expand the scope of goods and services tax (GST) to cryptocurrency transactions. Reports suggest it may impose crypto-token purchases with GST, just like on any other product. The entire value chain s expected to be included into its tax net.
  • Presently, services provided by crypto exchanges are taxed at 18%.

How Crypto transactions would be taxed under GST?

Taxing tokens would involve their classification as either goods or services, both of which are under GST rules. The tax rate of 28% is said to be under consideration on the argument that these are purely speculative buys, like casino chips or lottery tickets.

Why Crypto tokens are likely to be treated as purely speculative assets?

Due to the following reasons:

  • These tokens began life online as tokens of exchange, but most of them ended up as stores of value and lures for capital gains, due to short supply and an increased investor interest.
  • They typically bear no underlying claim on any issuer.
  • They are not contracts and offer no interest returns or share of profit generated by underlying businesses. Hence, the casino-chip analogy holds true.

Why classifying Cryptocurrencies is the right policy approach?

  • Classifying cryptocurrencies properly is crucial to regulating them. Moreover, their decentralized nature means they could exist in perpetuity.
  • Our Central bank can’t be deprived of its domestic monopoly on legal tender, as that would impair its monetary authority, only an officially-issued crypto can be accorded ‘currency’ status.
  • Moreover, unlike bonds and shares, which are tools of capital allocation, crypto coins serve no productive function.

Is a lower tax rate more appropriate for Crypto transactions?

  • For the sake of market activity, a light levy like a securities transaction tax (of 1% or less) may be more appropriate.
  • Moreover, a top-rate GST can deal a big blow to crypto trading activity by pushing them off-radar.
  • Digital tokens have been hailed as ‘e-gold’ of the information age. They are prized for scarcity and also portrayed as an inflation hedge. Hence, it should not suffer punitive taxes.

What is the way forward?

  • Profits on sale of Crypto coins must be held liable to capital-gains tax, as is currently the case.
  • Perhaps a stiff tax will nudge people to invest in stuff that’s designed to play an active role in the expansion of our economy.
  • Govt should spell out its stance at the earliest and enact a law to govern these digital creations.

Source: This post is based on the article “Heavy taxes are fine for quasi-assets like crypto” published in Livemint on 22nd Mar 22.

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India trails other countries in researchers

What is the News?

In this article, S Sridhar, the President of the Organisation of Pharmaceutical Producers of India (OPPI) lists what can help consolidate India’s pharma industry’s advantages and help it touch $130 billion by 2030 from $42 billion in 2020.

India is the world’s third-largest drug manufacturer in volumes and ranks 14th in value terms. However, as per the Global Innovation Index 2021, India is the 46th most innovative country in the world.

How can the PLI scheme for key starting materials, intermediates and APIs be improved?

Such schemes, along with a well-defined policy including Intellectual Property (IP) protection as well as innovation-driven private enterprises, will go a long way in creating India as a centre of excellence.

Suggestions to improve the scheme

  • A research-Linked Incentive Scheme
  • Offering subsidy for access to and the implementation of new technology in projects under the existing PLI scheme, to enable better output.
  • Already identified products as well as any future inclusions for KSMs, DIs and APIs should be exempted from any price controls under the Drugs (Prices Control) Order, 2013 for a period of 10 years, or till the end of the tenure of the scheme.

What are the issues that need to be sorted?

  • The New Drugs and Clinical Trials Rules, 2019 have specific provisions for expeditious approval of drugs for which there is an unmet need in India.
    • The local Phase 3 clinical trial data may be waived if a new drug is approved and marketed in countries specified by the Central Licensing Authority under Rule 101.
    • However, this list of countries remains absent and implementation of the above provisions remains open to subjective interpretations and delays in launch of path-breaking therapies.
  • Indian law permits state drug regulatory authorities to grant marketing approval for a generic version of a medicine four years after the original product was first approved.
    • Meanwhile, state regulatory authorities are not required to verify
      the remaining term of the patent protection on the original product. Such gaps need to be resolved.
  • Inadequate inputs from academia: Less than 0.5% of Indian students pursue a PhD or its equivalent. India also trails other countries in the number of researchers: It has only 216 researchers per million population versus 1,200 in China, 4,300 in the US and 7,100 in South Korea.

How should India’s drug regulatory system be streamlined?

The ecosystem of therapeutics is evolving from the old model of one-size-fits-all pharmaceuticals to offering more complex and targeted solutions. For instance: companion diagnostics, biomarkers, and/or combinations of medical technology and pharma products.

Suggestions for streamlining regulatory set up in India:

With a fast-moving evolution, there is a need:

  • for harmonised guidelines and aligned systems across processes, therapeutic areas and product categories
  • for a close dialogue with regulators
  • to establish transparency through the creation of a single end-to-end digital portal which will act as an interface between Innovator and Regulator.
  • Strategic policy interventions, as done during the pandemic by the Govt. During the pandemic, the government introduced regulatory policies to fast-track introduction of Covid vaccines, therapeutics and diagnostics.

What is the way forward

  • Encouraging research and innovation will be important to usher the next era of growth.
  • For India to evolve as an epicentre of biopharma research, sustained policy interventions and strategic partnerships are necessary.
  • Dedicated specialised patent benches with the requisite technical know-how for adjudication of patent disputes are critical, especially as patents granted under the Patents Act, 1970 have protection only for a limited period of time.
  • A strong academic foundation is reqd that drives research in collaboration with various stakeholders. This means identifying key academic institutions as centres of excellence, supporting them with adequate funding, focussing on therapy areas of national importance, and encouraging collaboration with industry. India should also incentivise foreign institutes to set up campuses.

Source: This post is based on the article “India trails other countries in researchers” published in Times of India on 22nd Mar 22.

Daily Factly Articles For UPSC IAS Current Affairs Preparation

Translated into Ol Chiki for first time, Santals get to read India’s Constitution in their own script

What is the News?

An assistant professor in the Santali language at the Sidho-Kanho-Birsha University in Purulia, West Bengal, Sripati Tudu has translated the Constitution of India in the Ol Chiki script.

Need for translation

  • He wanted the document to be more accessible and available for a wider group that may not necessarily be familiar with languages in which a translation of the Constitution is available.
  • There is a lot of demand for the Constitution in Santali among students in the higher secondary level. Educators who intend to teach political science in schools to Santali students will find the translation indispensable.

About Santali language

  • Santali (Santhali) was a mainly oral language until the development of Ol Chiki by Pandit Raghunath Murmu in 1925. Ol Chiki is alphabetic, sharing none of the syllabic properties of the other Indic scripts, and is now widely used to write Santali in India.
  • In 2003, the 92nd Constitutional Amendment Act added Santhali to 8th Schedule  to the Constitution of India, which lists the official languages of India, along with the Bodo, Dogri and Maithili languages.
    • This addition meant that the Indian government was obligated to undertake the development of the Santali language and to allow students appearing for school-level examinations and entrance examinations for public service jobs to use the language.
  • According to the 2011 Census of India, there are over 70 lakh (seven million) people who speak Santali across the country.
  • The Santhali community is the 3rd largest tribe in India, concentrated in seven states in large numbers, including in West Bengal, Odisha and Jharkhand. The community is also spread across Bangladesh, Bhutan and Nepal.
  • In 2005, India’s Sahitya Akademi started handing out awards every year for outstanding literary works in Santali, a move that helped preserve and give more visibility to the community’s literature.

Any Indian national can translate the Constitution in their own language. The department of Official Languages under the Union Ministry of Home Affairs oversees the implementation of the provisions of the Constitution relating to official languages and the provisions of the Official Languages Act, 1963. No permission is needed for translations. The individual also has the right to generate income by selling their translation of the Constitution.

Source: This post is based on the article “Translated into Ol Chiki for first time, Santals get to read India’s Constitution in their own script” published in The Indian Express on 20th Mar 22.

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