General Studies Paper 3

Context – Japan PM is visiting India for the second time.

What is the importance of the bilateral relationship between India and Japan?

• Close coordination between India and Japan as leading democracies of Asia are the cornerstones of peace and prosperity in the region.
• The bilateral relationship between our two countries is multi-layered. It is based on shared values and principles of freedom, democracy, human rights and the rule of law. Both have shared vision of Free and Open Indo-pacific.
• Today, the international community is at a historic turning point.Its impact, such as the food crisis and soaring fertiliser prices, are also being felt here in the Indo-Pacific region.
• As Japan and India assume the Presidencies of the G7 and the G20respectively this year, cooperation between them is important for the region.
• In the context of the Ukraine war, both have sought a peaceful resolution based on international law.

What are potential areas of cooperation between India and Japan?

• Japan-India relations have advanced in various fields. Japan is important partner in the high-speed railway project in India
• Japan has the target of 5 trillion Yen of public and private investment and financing from Japan to India in the next five years. This was announced by our two governments last year.
• Smart city projects by India, share high compatibility with Japan’s Vision for a Digital Garden City Nation Realisation.
• Japan is cooperating in the development of the north-eastern regionof India by increasing connectivity with the surrounding regions.

What is the shared vision of Free and Open Indo-Pacific between India and Japan?

• FOIP is a vision shared by Japan and India. It has gained support and endorsement of the international community and led to the mainstreaming of the “Indo-Pacific”.
• FOIP is even more relevant at a time when Japan and India aim to pursue the shared goal of leading the international community towards cooperation rather than division and confrontation.

General Studies Paper 2

Context: Prime Ministers of India and Bangladesh recently inaugurated the India-Bangladesh Friendship Pipeline (IBFPL). It is the first cross-border energy pipeline between the two countries.

More about the India-Bangladesh Friendship Pipeline (IBFPL)

• About:
  • The entire pipeline is 131.5 km long.
  • The pipeline runs from the Siliguri-based marketing terminal of the Numaligarh Refinery Limited (NRL)to the Parbatipur depot of Bangladesh Petroleum Corporation (BPC).
• Cost:
  • The pipeline has been built at an estimated cost of ?377 crore. Bangladesh’s section of the pipeline cost ?285 crore.
    • The construction of the project started in 2018 with the help of India’s grant funding.
  • Fuel transport:
    • It will be used to supply diesel from India to Bangladesh.
      • The supply will start on an experimental basis in June this year.
    • The pipeline will transport 1 million metric ton of high-speed diesel every year to seven districts of North Bangladesh.
    • The fuel transport deal will be effective for 15 years with an option for further extension.
  • Significance:
    • The operation of India- Bangladesh Friendship Pipeline will put in place a sustainable, reliable, cost-effective and environment friendly mode of transporting HSD (High-speed diesel) from India to Bangladesh and will further enhance cooperation in energy security between the two countries

India Bangladesh Relations

• India was one of the first countries to recognize Bangladesh and establish diplomatic relations immediately after its independence in December 1971.
• Internationally both the nations share the following platforms:
  • SAARC, BIMSTEC, Indian Ocean Coastal Regional Cooperation Association, and Commonwealth.
• Trade and investment: 
  • Bangladesh is India’s biggest trade partner in South Asia and India is the largest market in Asia for Bangladesh’s exports.
  • India’s exports to Bangladesh during 2021 was US$14.09 Billion.
  • Bangladesh may become India’s fourth-largest export destination in FY22, jumping five places in two years.
  • Bangladesh’s growth stems largely from its success as an exporter of garments, which account for around 80 percent of its total exports.
• Power and energy cooperation:
  • Cooperation in the power sector has become one of the hallmarks of India -Bangladesh relations.
    • Bangladesh is currently importing 1160 MW of power from India.
  • Bangladesh is the biggest development partner of India.
    • India has extended 3 Lines of Credits (LOC) to Bangladesh in the last 8 years amounting to US$ 8 billion for the development of infrastructure in various sectors including roads, railways, shipping and ports.
  • Capacity Building and Human Resource Development:
    • Human resource development is a key component of India’s development cooperation efforts in Bangladesh through its several ongoing training programs and Scholarships.
    • The Government of India has been training 1800 Bangladesh Civil Service officials from 2019 at National Centre for Good Governance (NCGG), Mussoorie
    • The Indira Gandhi Cultural Centre (IGCC) in Dhaka plays an important role in the celebration of common cultural links between the two countries.
    • Its training programs including Yoga, Kathak, Manipuri dance, Hindi language, Hindustani classical music and the cultural programs of renowned artists of India and Bangladesh contribute to the promotion of people-to-people contacts.
  • Defense Cooperation:
    • High level exchanges at the level of services chief of Indian Navy, Bangladesh Navy and Indian Air Force, the conduct of second annual defense dialogue and inaugural tri-services staff talks, service specific talks of Navy and Air Force.
    • DG-level talks between the Coast Guards have contributed to significant improvement in bilateral defense cooperation.
    • In the training domain both the countries have continued and enhanced mutual engagements.
    • Various Joint exercises take place between the two countries:
      • Exercise Sampriti(Army) and
      • Exercise Milan(Navy).
    • Multimodal Connectivity:
      • The passenger trains between India and Bangladesh:
        • Bandhan Express: starting from Kolkata for Khulna – Since 2017
          • It covers the distance via Petrapole and Benapole border route to cater to the demands of the people from both countries.
        • Maitree Express: starting from Dhaka for Kolkata – since 2008
          • The tri-weekly service between Kolkata and Dhaka used to run with 90 percent occupancy.
          • The train has a capacity to carry 456 passengers, the same as Bandhan Express.
        • Mitali Express: starting from New Jalpaiguri in North Bengal for Dhaka.
      • Bus Serice:
        • Both the governments decided to commence: Dhaka-Siliguri-Gangtok-Dhaka and DhakaSiliguri-Darjeeling-Dhaka bus service to enhance people to people contacts between both the countries and the trail run of Dhaka-Siliguri-Gangtok-Dhaka was also held in December 2019.
      • The Government of India has also been providing grant assistance to Bangladesh for various infrastructure projects including the construction of the Akhaura-Agartala rail link, dredging of inland waterways in Bangladesh and construction of the India-Bangladesh Friendship Pipeline

General Studies Paper 3

Context: Banks have been traditionally known for accepting deposits and giving loans. However, the definition of a bank has expanded beyond just a physical building. Today, the banking system has evolved into a secure and robust medium that offers innovative deposit schemes, secure money storage, and quick loan transactions.

Banks are no longer just a conglomerate of traditional banks but have also incorporated new forms of banks such as payment banks, small finance banks, and even the general banking system of post offices and non-banking financial companies.

Banking provisions in the budget

• Discussions about the banking provisions in budgets have broadened to include topics like tax concessions, capital provisions, and the role of these new forms of banks in the financial system. The General Budget 2023-24 for the banking sector can be analysed by dividing it into five parts:
• New savings schemes and changes in existing savings schemes
• Sources of Government Borrowing
• Campaign to promote digital transactions
• Loan for a specific sector
• Reforms in banking governance

Banking provisions in the budget: Deposit Schemes

• The Budget 2023-24 includes measures to promote savings among women and secure the future of the elderly through savings.
• Mahila Samman Savings Certificate: It is a new small savings scheme, which will be available until March 2025. This scheme will offer a deposit facility of up to Rs 2 lakh for women or girls for two years at a fixed interest rate of 7.5 percent with a partial withdrawal option. This is aimed at encouraging economic empowerment of half the population and providing them with a secure medium to save their money.
• Sukanya Samriddhi Yojana: It is a special scheme for girls launched in 2015, under the ‘Beti Bachao Beti Padhao’ initiative. Its aim is to encourage families to invest in their education and save for marriage expenses. Parents of girls under 10 years can open up to two (three in case of first girl child twins) Sukanya Samriddhi accounts with a maximum deposit of Rs 1.5 lakh annually. The scheme is “EEE” (Exempt-Exempt Exempt, i.e. tax exemption at the time of investment, tax exemption on the increase in investment, and tax exemption at the time of withdrawing the entire amount of investment including interest).
• Senior Citizen Savings Scheme: Under this, the maximum deposit limit for this scheme has been increased from Rs 15 lakh to Rs 30 lakh. The interest rates of the scheme are reviewed quarterly.
• Monthly Income Account Scheme: The maximum deposit limit for this scheme has been increased from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account. The interest rates of the scheme are also reviewed quarterly.

Banking provisions in the budget: Sources of government borrowing

• The Union Budget 2023-24 estimates net market borrowing from dated securities at Rs 11.8 lakh crore against a fiscal deficit of Rs 17.87 lakh crore.
• Banks play a crucial role in fulfilling this estimate as they invest a large amount of money in these bonds, aiming to meet statutory requirements and take advantage of market conditions. To actively participate in this system, banks must have sound financial conditions.
• Currently, all 12 public sector banks and major private banks are profitable, and their deposits are continuously increasing, making it easier for them to participate in the government’s borrowing.
• Banking provisions in the budget: Promoting digital transactions
• Banks are competing to provide fast, secure, and accessible digital transaction services.
• Incentive scheme: After the success of last year’s programme, which led to a 76% increase in digital transactions and a 91% increase in their value, the government has decided to keep offering incentives for the financial year 2023–2024.
• Under this scheme, approval has been granted for giving Rs 2600 crore to banks to promote Point-of-Sale (POS) and e-commerce transactions using RuPay Debit cards and low-value BHIM-UPI transactions.
• This provision will be beneficial for banks, which are striving to offer competitive digital payment solutions to their customers.

Banking provisions in the budget: Sector-specific loans

• The banking sector keeps an eye on credit targets for different sectors. In fact, banks get some facilities with these targets such as the provision of a part of the interest rate by the government or the credit guarantee fund. It helps the banks to give their loans to a specific sector.

Agricultural sector:

• The budget focuses on the agriculture sector and provides a provision of Rs 23,000 crores for small farmers to continue benefiting from the Kisan Credit Card.
• The agricultural loan target has been increased to Rs 20 lakh crore, with a focus on animal husbandry, dairy, and fisheries.
• The government offers short-term crop loans up to Rs 3 lakh at a 4% effective interest rate if repaid on time, and for allied activities such as fisheries, animal husbandry, and dairy, loans up to Rs 2 lakh are available at the same interest rate.
• In addition, if the bank gives agricultural loans through its resources, then they get 2 percent assistance.

Micro, Small and Medium Enterprises (MSME): 

• The Credit Guarantee Scheme for MSMEs will be renewed with an additional Rs 9,000 crore, commencing from April 01, 2023. This will enable collateral-free loans of an additional Rs 2 lakh crore and bring down the cost of credit by about one percent.
• Due to the guarantee factor, banks will not have to worry much about the loss in case of loan default and it will be easier for small and medium businessmen to get loans.

Banking provisions in the budget: Reforms in Banking Governance

• The budget has proposed amendments to the Banking Regulation Act, Banking Companies Act, and Reserve Bank of India Act to reform the governance of banks and increase investor protection.
• Although the details are not disclosed, new guidelines are expected to be drawn for the bank’s board of directors, including eligibility, tenure, and reappointment. The aim is to improve the banking system, which has expanded in recent years.

Conclusion

• Based on the changes in the banking system, the approach for analyzing the general budget for the banking sector has also evolved. The budgets for the financial years 2022-23 and 2023-24 do not include any provisions for the recapitalization of public sector banks. The main reason for this is that the financial health of public sector banks has improved a lot, bad loans have come down, and the situation is likely to remain the same in the future.

General Studies Paper 2

Context: The International Criminal Court (ICC)  issued an arrest warrant for war crimes for President Vladimir Putin and a second Russian official.

• This is the first time that the ICC has issued an arrest warrant against one of the five permanent members of the United Nation Security Council.

Why did the ICC Issue an Arrest Warrant against Putin?

• ICC issued an arrest warrant against Russian President Vladimir Putin for the alleged war crime of unlawfully deporting and transferring children from occupied areas of Ukraine to the Russian Federation.

What is ICC?

• On 17 July, 1998 Rome Statute was adopted by 120 States in direction of creating a more just world.
• On 1 July,2002 Rome Statute took effect upon ratification by 60 states, officially establishing the ICC. Since it has no retroactive jurisdiction, the ICC deals with crimes committed on or after this date.
• The Rome Statute, grants the ICC jurisdiction over four main crimes:
  • The crime of Genocide
  • Crimes against Humanity
  • War crimes
  • Crime of Aggression
• The Court is participating in a global fight to end lawlessness, and through international criminal justice, the Court aims to hold those responsible accountable for their crimes and to help prevent these crimes from happening again.
• The ICC is the world’s first permanent international criminal court.
• Currently,123 countries are party to the Rome Statute, India is not a party to Rome Statute along with US and China.
• The ICC was established to prosecute the most heinous offenses only when a country’s own legal machinery fails to act. Unlike the   International Court of Justice (ICJ), which deals with countries and inter-state disputes, the ICC prosecutes individuals.

Does the ICC have the Power to Prosecute Russia?

• As of March 2023, Russia is not a party to the Rome Statute,and therefore, the ICC has no jurisdiction over crimes committed on its territory. However, the ICC can investigate and prosecute crimes committed by individuals from other countries who committed the alleged crimes on the territory of a state party to the Rome Statute.
• Ukraine is also not a State Party to the Rome Statute”, but it has twice exercised its options to accept ICC’s jurisdiction over alleged crimes under the Rome Statute, occurring on its territory, under Article 12(3) of the Statute.
  • Article 12(3) states that if the acceptance of a state that is not a party to the statute, the state may accept the jurisdiction of the court for a crime concerned, by making a declaration to the Registrar and cooperating without any delay or exception.

General Studies Paper 1

Context: Recently, the Ministry of Statistics and Programme Implementation has released Women and Men in India 2022 report.

What are the Findings of the Report?

• Sex Ratio:
  • The sex ratio  at birth went up by three points to 907 in 2018-20 from 904 in 2017-19.
  • India’s sex ratio (females per 1,000 males) is expected to improve to952 by 2036, up significantly from 943 in 2011.
• Labour Force Participation:
  • India’s Labour Force Participation Rate for those above 15 years of age has been on the rise since 2017-2018. However, women are severely lagging behind
    • The rate was 77.2 for males and 32.8 for females in 2021-22, with no improvement in this disparity over the years.
  • Less participation is due to social factors, educational qualifications and  gender discrimination  in terms of wages and opportunities in the workplace.
• Population Growth:
  • The population growth, already on a downward trend from 2.2% in 1971 to 1.1% in 2021,is projected to fall further to 0.58% in 2036.
  • In absolute figures, this translates into 1.2 billion people with 48.5% female population as per  Census 2011 to an expected 1.5 billion in 2036 with a marginal improvement in the female population share (48.8%).
• Age of Sex Structure:
  • India’s age and sex structure, as per which the population under 15 years of age is expected to decline and the population above 60 years is expected to increase by 2036.
  • Accordingly,the population pyramid will undergo a shift as the base of the pyramid in 2036 would narrow down, while the middle would be broadened.
    • The age and sex structure of a country’s population can affect gender issues in a variety of ways. Age structure impacting various aspects of societies is determined primarily by trends in fertility and mortality.

• Access to Health Information and Services:
  • Lack of access to resources and decision-making power, restrictions on mobility, etc make access to health information and services more difficult for women and girls than men and boys.
• Fertility Rate:
  • The age-specific  fertility rate for the 20-24 year and 25-29 years age group between 2016 and 2020 reduced from 135.4 and 166.0 to 113.6 and 139.6 respectively.
    • This is likely a function of economic independence by attaining proper education and securing a job.
  • The same indicator for the 35-39 years age group increased from 7 in 2016 to 35.6 in 2020.
    • The mean age for marriage has improved marginally up from 22.1 years in 2017 to 22.7 years in 2020.

General Studies Paper 3

Context:  India has become the world’s largest producer and consumer of sugar.

About

• Sugarcane is a tall, perennial grass used to make sugar, ethanol and paper.
• Sugar industry impacts the livelihood of about50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills.
• Crop Conditions: 
  • Temperature:Between 21-27°C with hot and humid climate.
  • Rainfall: Around 75-100 cm.
  • Soil Type: Deep rich loamy soil.It can be grown on all varieties of soils ranging from sandy loam to clay loam given these soils should be well drained.
• Top Sugarcane Producing States: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Bihar.
• Distribution Of Industry : 
  • Sugar industry is concentrated around two major areas of production- Uttar Pradesh, Bihar, Haryana and Punjab in the north and Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh in the south.
  • South India has a tropical climate which is suitable for higher sucrose content resulting in a higher yield per unit area as compared to north India.
• Sugar exports have shown an impressive trend. This can be seen from the fact that during the 2016-17 and 2017-18 sugar years (Oct-Sept), India’s shipments were a mere 0.46 lakh tonnes (lt) and 6.2 lt respectively. They had zoomed to 110 lt by 2021-22. 
• Reasons for Increase in Exports:
  • Impressive Sugar Season (Sep-Oct):All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production was made during the last years season.
  • Shift From Refined to Raw Sugar:Exporters started focussing on raw sugar .Much of the world sugar trade is in ‘raws’ that are transported in bulk vessels of 40,000-70,000 tonnes capacity.
  • Indian Government Policy Initiatives:Timely government initiatives in the last 5 years have taken the sugar industry  out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.

Government Initiatives:

• Encouraging Ethanol Production:The Government has encouraged sugar mills to divert sugar to ethanol and also export surplus sugar so that mills may have better financial conditions to continue their operations.
• Ethanol Blending with Petrol (EBP) Programme: The National Policy on Biofuels 2018, provides an indicative target of 20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme .
• Fair and remunerative price (FRP):The FRP is the minimum price that sugar mills have to pay to sugarcane farmers for procurement of sugarcane. Government has increased FRP by more than 34% in the past 8 years.

Challenges:

• Uncertain Production Output: Sugarcane has to compete with several other food and cash crops like cotton, oil seeds, rice, etc. By nature being a water guzzling crop it’s productivity depends on monsoon and varies from year to year causing fluctuations in prices leading to losses in times of excess production due to low prices.
• Low Yield of Sugarcane: India’s yield per hectare is extremely low as compared to some of the major sugarcane producing countries of the world. For example, India’s yield is only 64.5 tonnes/hectare as compared to 90 tonnes in Java and 121 tonnes in Hawaii.
• Short Crushing Season: Sugar production is a seasonal industry with a short crushing season varying normally from 4 to 7 months in a year.
  • It causes financial loss and seasonal employment for workers and lack of full utilisation of sugar mills.
• Low Sugar Recovery Rate: The average rate of recovery of sugar from sugarcane in India is less than 10% which is quite low as compared to other major sugar producing countries.
• High Production Cost: High cost of sugarcane, inefficient technology, the uneconomic process of production and heavy excise duty result in high cost of manufacturing.

Way Forward:

• The sugarcane is a water guzzling crop. More Research and development in sugarcane can help address issues like sustainability, low yield and low sugar recovery rates.
• A fixed export policy will help in building supply chains which can result in higher price realisation for Farmers.
• The government should encourage value addition preferably with the help of co-operative enterprises for better price realisation.

India should also look forward to producing sugar from beets in order to save scarce water resources

General Studies Paper 2

Context: China and India have far more common interests than differences.

China and India coming together

• Representatives of developing countries:
  • As two neighbouring and ancient civilisations, with a combined population of 2.8 billion, China and India are representatives of developing countries and emerging economies.
• Crucial period of modernisation for both:
  • India and China are both in the process of national rejuvenation and a crucial period of modernisation where challenges need to be overcome and problems need to be solved.
• China’s path of modernization:
  • China is advancing modernisation on all fronts. Here, the path to modernisation is based on China’s practices with a focus on high-quality development.
    • It means the modernisation of a huge population, where there is
      • Common prosperity for all,
      • Material and cultural-ethical advancement,
      • Harmony between humanity and nature, and
      • Peaceful development.
    • Significance:
      • In his recent meeting with India’s External Affairs Minister & Chinese Foreign Minister stated that the development and revitalisation of China and India embody a boost to the force of developing countries; it is one that will change the destiny of a third of the world’s population and having bearing on the future of Asia and beyond.
        • This will spell new opportunities to all countries in the world, especially neighbouring countries.
      • This echoes what India’s External Affairs Minister had expressed in 2022, that the Asian Century will happen when China and India come together.

China’s focus areas

• Steady growth:
  • In 2022, China’s economy grew by 3% with a total of 12.06 million urban jobs added. China’s GDP registered an annual growth rate of 5.2% over the past five years and an annual growth of 6.2% over the past decade. China’s economic strength is steadily reaching new heights.
• People’s well-being: 
  • As a result of continued efforts of the past eight years, China has historically resolved absolute poverty, with the alleviation of close to 100 million rural residents from poverty.
  • Over 70% of the government’s expenditure went toward ensuring people’s well-being. Basic old age insurance covers 1.05 billion people, an increase of 140 million.
  • Living standards continue to witness new improvements.
• Opening up:
  • In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 8.6%.
  • China’s actual use of foreign capital was up by 8% and the country remained one of the top destinations for foreign investors.
  • The overall tariff level continues to fall, from 9.8% to 7.4%. China’s doors to the outside world are opening even wider.
• Win-win cooperation:
  • In the period 2013-2021, China’s contribution to global economic growth averaged 38.6%, higher than that of G7 countries combined (25.7%).
• Ever since the Chinese President, Xi Jinping, proposed the Global Development Initiative (GDI) in a speech at the United Nations General Assembly in 2021, more than 100 countries have expressed their support and over 60 countries have joined the Group of Friends of the GDI.

China-India trade

• Significance:
  • China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
  • The Chinese market is open to India and the Investments by Chinese enterprises have created jobs for the Indian people and contributed to India’s economic development.
• Challenges:
  • Tariffs and non-tariff steps:
    • India is considering a number of tariffs and non-tariff steps to cut imports of non-essential consumer and electronic goods, including from China, as trade imbalances concern policymakers.
  • Limited participation for industries:
    • A section of the industry has opined that some of the conditions like requirements of local experience, are limiting their participation in the Chinese procurement process.
  • China’s dumping practices:
    • India’s domestic industry has suffered material injury due to dumping. Against this, India has imposed antidumping duties on a few Chinese products.
  • Geopolitical constraints:
    • India is also suspicious about the strong strategic bilateral relations between China and Pakistan. The border dispute between the two countries is also causing hindrances.

Indian Government’s steps to reduce the trade deficit & way ahead

• Buyers – Sellers meets:
  • The Government of India has taken various measures to extend support to exporters by facilitating Buyers – Sellers meets between potential Chinese importers and Indian exporters to increase exports of sugar, oil meals, Indian rice and grapes.
• Promoting domestic manufacturing:
  • Government has been implementing various schemes and programmes to help the domestic industries compete effectively with imports.
  • To promote the domestic manufacturing, schemes like ‘Make in India, ‘Digital India’, Software Technology Parks, Electronics Hardware Technology Park Scheme/ Export Oriented Unit Scheme and Special Economic Zone Scheme provide support for promoting domestic manufacturing in the country.
• The Foreign Trade Policy:
  • The Foreign Trade Policy 2015-20has mechanisms such as Merchandise Exports from India Scheme, Advance Authorisation Scheme, Export Promotion Capital Goods Scheme, Interest Equalization Scheme to provide an enabling framework for businesses to make their exports competitive.
  • Active interventions, in terms of policy and procedural changes,are regularly undertaken by the Government so that businesses can cope with the dynamic international trade scenario.

General Studies Paper 2

Context: The recently launched Vibrant Village Programme is hailed as a right step towards securing Himalayan borders.

About the Vibrant Village Programme (VVP)

• About:
  • The Vibrant Village Programme is a Centrally Sponsored Scheme recently approved by the Cabinet for the Financial Years 2022-23 to 2025-26.
  • The scheme will provide funds for the development of essential infrastructure and the creation of livelihood opportunities in 19 Districts and 46 Border blocks 4 states and 1 UT along the northern land border of the country which will help in achieving inclusive growth and retaining the population in the border areas.
    • In the first phase 663 Villages will be taken up in the programme.
  • Aim:
    • The program aims towards the comprehensive development of villages of blocks on the northern border thus improving the quality of life of people living in identified border villages.
  • Key highlights:
    • The scheme aids to identify and develop the economic drivers based on local natural human and other resources of the border villages on the northern border and the development of growth centres on the “Hub and Spoke Model”
      • This will be done through:
        • Promotion of social entrepreneurship,
        • Empowerment of youth and women through skill development and entrepreneurship,
        • Leveraging the tourism potential through promotioon of local cultural, traditional knowledge and heritage and
        • Development of sustainable eco-agribusinesses on the concept of “One village-One product” through community based organisations, Cooperatives, SHGs, NGOs etc.
      • Key outcomes that have been attempted are:
        • Connectivity with all weather road,
        • Drinking water,
        • 24×7 electricty – Solar and wind energy to be given focuseed attention,
        • Mobile and internet connectivity.
        • Tourist centers, multi-purpose centers and health and wellness Centers.
      • Vibrant Village Action Plans:
        • Vibrant Village Action Plans will be created by the district administration with the help of Gram Panchayats. 100 % saturation of Central and state schemes will be ensured.

Significance

• This initiative will soon transform our border villages neighbouring China, Pakistan, Nepal, Bangladesh, Bhutan and Myanmar.
  • Border villages are being provided with all basic amenities including modern housing and good roads; water and electricity supply; good education, health and communication facilities; access to Doordarshan channels, etc.
• This will help in encouraging people to stay in their native locations in border areas and reversing the outmigration from these villages adding to improved security of the border.

Issues & Challenges faced by Himalayan states

• Social:
  • In 2018, the Parliamentary Standing Committee pointed towards illiteracy, backwardness and lack of basic facilities in our border areas.
• Issue of migration:
  • Migration is common in the Himalayas, with large numbers of males leaving the countryside to find work in urban centres.
• Security threats:
  • For decades Himalayan border villages remained untouched by development. Sensing an opportunity, China increased its influence along our borders by rapidly developing its infrastructure and increasing the presence of its army.
  • India also suffered similar setbacks along the Pakistan border due to serious lapses.
  • Terror activities have also increased along the Myanmar border.
• Unplanned Urbanisation:
  • The unplanned and unauthorised construction has led to the blocking of the natural flow of water, which eventually results in frequent landslides.
  • Himalayan slopes have become extremely unstable in the last few decades due to increased construction, hydroelectric projects, and the widening of the National Highway.
• Subsidence of towns:
  • It has been reported that subsidence of the kind we have seen at Joshimath is also evident in several other Himalayan towns.
• Ecology under stress:
  • Due to population growth, and industrial and commercial activity, the fragile ecology is under great stress.
  • The common threats are deforestation, soil erosion and pressure on restricted land.
• Climate change:
  • The effects of climate change are particularly worrisome in mountain environments, especially the impact on the region’s water supply, which serves over 1.3 billion people living downstream.
  • The frequency of floods and droughts seems to be on the rise, as is the demand for water, food and energy.

Other initiatives by the government to secure Himalayan villages

• PM Gram Sadak Yojna:
  • The PM Gram Sadak Yojna to connect remote villages with all-weather roads.
  • It started with the construction of concrete roads in all villages with over 250 inhabitants.
  • Remote villages were also connected with a robust optical fibre network.
• PM Awas Yojna:
  • Similarly, under PM Awas Yojna, pucca houses were constructed in remote villages. People were provided with water and electricity connections and given toilets.
• National Mission for Sustaining the Himalayan Ecosystem:
  • About:
    • National Mission for Sustaining the Himalayan Ecosystem is among the eight national missions in India’s first-ever National Action Plan on Climate Change.
  • Ecological significance of Himalayas, as stated in the mission document:
    • Himalayan ecosystem is vital to the ecological security of the Indian landmass, which includes
      • Preservation of rich biodiversity,
      • Providing water security as the world’s third ice pole after the Arctic and Antarctica and
      • Influencing weather patterns throughout the sub-continent.
    • The mission attempts to address some important issues concerning
      • Himalayan Glaciers and the associated hydrological consequences,
      • Biodiversity conservation and protection,
      • Wildlife conservation and protection,
      • Traditional knowledge societies and their livelihood and
      • Planning for sustaining of the Himalayan Ecosystem.

Way ahead

• People living in border villages are the first line of our defence; they are our sentinels.
• The Vibrant Village Programme is an important and commendable initiative that will address all of the issues & challenges faced by the Himalayan states.
• This will not only make our borders safe and secure, it will also bring remote and border villages into the national mainstream, and make them more vibrant, developed and self-sufficient.

General Studies Paper 3

Context: Infrastructure in emerging economies like India has seemingly become both a demonstration of good and a necessity.

Importance of Infrastructure in emerging economies:

• Simultaneously works as a national aspiration good,
• A barometer of national progress,
• A mechanism for job creation,
• A vehicle for crowding in private investment, etc.

Constraints on infrastructure provision are:

• Expensive, because it needs to be built to a minimum scale.
• Often has a public good component,which makes the social value of infrastructure higher than its private value to individual users → making it relatively unprofitable for private investors.
• The traditional approach to financing infrastructure→ tax revenues or government borrowing.
• Vicious trap→ poorer economies generate less tax revenue → increasing public borrowing domestically → crowd out private investment → limits infrastructure investment, growth of the economy → keep the country poor.

Indian government’s efforts to come out of this vicious trap?

• Incentivise private sector participation by providing targeted subsidies for infrastructure investments.
  • In the early 2000s, thePublic-Private-Partnership (PPP) model was introduced.
  • While the program did result in the construction of a lot of infrastructure, it ended in an avalanche of non-performing assets with public sector banks → widespread corruption → change in government in 2014.
• The “national champions” model:It modified the  PPP approach by assigning the bulk of the infrastructure provisioning for roads, ports, airports, energy, and communications to a few chosen industrial houses.

How does this model overcome the difficulty of financing infrastructure?

• Incentivising national champions to build the projects identified by the government.
• New aspects of the national champions model:
  • Champions given control over existing projects with strong cash flows → helps them to achieve targeted returns and borrow from external credit markets → lowers the cost of finance, freeing up domestic savings for private investment
  • The public association of the champions with the government’s national development policy → generates a competitive advantage in getting domestic and foreign contracts.

Issues with the national champions model:

• The direct association of conglomerates with government policies→ markets, regulators treat them as too big to fail → delayed discovery of problems, spillovers.
• The longer it takes for projects to generate large cash flows, the greater will be the need for the state to provide access to additional cash flows.
• This risks turning the country into an industrial oligarchy.
• An uneven playing field in terms of market access, regulatory relaxations → a significant deterrent for foreign investors → bad for efficiency and productivity at the economy-wide level

Dilemma India is facing:

• Can infrastructure provision be the solution to India’s growth aspirations?
• India is at an inflection point in its development path.
• Way ahead: A development model based on a domestic demand-driven production structure, powered by soft and hard infrastructure.

General Studies Paper 3

Context: OpenAI has announced GPT4, the latest version of its large language model that powers key applications like ChatGPT and the new Bing.

What is ChatGPT?

• ChatGPT is an artificial-intelligence chatbot developed by San Francisco-based AI research company OpenAI in 2022.
• It is a trained modelwhich interacts in a conversational way. The dialogue format makes it possible to answer followup questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests.
• It can have conversations on topics from history to philosophy, generate lyrics and suggest edits to computer programming code.

Technology Used

• The technology that underlies ChatGPT is referenced in the second half of its name, GPT, which stands for Generative Pre-trained Transformer. 
• Transformers are specialized algorithms for finding long-range patterns in sequences of data.
• A transformer learns to predict not just the next word in a sentence but also the next sentence in a paragraph and the next paragraph in an essay. This is what allows it to stay on topic for long stretches of text.

Shortcomings of the Previous Models

• The chatbot isn’t always accurate: Their sources aren’t fact-checked, and they rely on human feedback to improve its accuracy. They can also get facts mixed up and produce misinformation.
• GPT-3 and ChatGPT’s GPT-3.5 were limited to textual input and output, meaning they could only read and write. 
• GPT-3 and GPT-3.5 only operated in one modality, text, meaning users could only ask questions by typing them out.

What is GPT-4?

• GPT-4 is a large multimodal model which means it can encompass more than just text and accepts images as inputs.
• GPT-4 also exhibits human-level performance on various professional and academic benchmarks.
• For example, it can answer tax-related questions, schedule a meeting among three busy people, or learn a user’s creative writing style.
• GPT-4 is also capable of handling over 25,000 words of text, opening up a greater number of use cases that now also include long-form content creation, document search and analysis, and extended conversations.

How is GPT-4 different from GPT-3?

• GPT-4 can see images now:GPT-4 can be fed images and asked to output information accordingly whereas GPT-3 and ChatGPT’s GPT-3.5 were limited to textual input and output.
• GPT-4 can process a lot more information at a time.
• GPT-4 has an improved accuracy:GPT-4 significantly reduces hallucinations relative to previous models and scores 40 per cent higher than GPT-3.5 on factuality evaluations.
• Hard to trick: It will be a lot harder to trick GPT-4 into producing undesirable outputs such as hate speech and misinformation.
• Better at understanding languages other than English: GPT-4 is more multilingual which means that users will be able to use chatbots based on GPT-4 to produce outputs with greater clarity and higher accuracy in their native languages.