Wednesday, 5 July 2017

Irrigation tips from an arid country

When Prime Minister Narendra Modi visits Israel this week, he will become the first Indian PM to do so
The India-Israel cooperation is likely to extend to water and agriculture
In the run-up to the PM’s visit, ICRIER and the Israeli Embassy in India collaborated on a brainstorming session on a potential partnership between the two countries on water


For India- Water is a concern:

It is well-known that India is water stressed
The country’s annual per capita availability of water is less than 1,500 cubic meters (cum) and that scenario is likely to worsen
Currently, about 78 per cent of fresh water in India is used for agriculture

Lessons from Israel:

  • Israel has per capita water availability of less than 200 cum
  • It is an extremely water scarce region
  • Yet, the country exports high-value agri-produce to Europe and many other parts of the world
  • The country is known as the land of innovations in water management, be it drip irrigation, recycling of urban wastewater for use in agriculture or desalinisation of seawater for drinking purposes
  • Work already started in India:
  • The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) encapsulates the PM’s ideas of “Har khet ko paani” and “more crop per drop”
  • Micro-irrigation technologies — drip irrigation and sprinklers — are not alien to India
  • India has about nine million hectares under micro-irrigation
  • This can be scaled up several times

How will scaling up happen?

Israel can offer lessons to India in this respect
Any scaling up of technologies needs the right policy environment
Water is not a free good and needs to be priced to reflect its scarcity
So far the government has not shown much appetite to reform the regime of high subsidies on water and power, which is leading to their inefficient use

What Israel does?

As per Israel’s water law, all water in the country is common property resource
The government does accounting for every drop of water, ensuring good water governance
As a result, in 2013, of the total water available in Israel almost 16 per cent came from desalinating seawater and another 22 percent came from recycling wastewater
Almost 62 per cent of the irrigation water used in Israel comes from recycled and brackish water, thus saving potable water for domestic use
Such recycling endeavours, with proper treatment that make wastewater safe, have relevance in India

Way Forward for India:

Government can include recycling of wastewater for use in peri-urban agriculture as an integral part of its smart city initiative (India has the technology for this purpose)
Desalination technology can benefit India which has a long coastline of about 7,500 km
An integrated approach to solving India’s emerging water crisis, involving government to government, governance to business and business to business interactions between Indians and Israeli agencies has much to offer





Basics 
  • Indian Council for Research on International Economic Relations (ICRIER)
  • ICRIER is an autonomous, policy-oriented, not-for-profit, economic policy think tank
  •  ICRIER’s main focus is to enhance the knowledge content of policy making by undertaking analytical research
  • Research is targeted at informing India’s policy makers and also at improving the interface with the global economy
  • ICRIER conducts thematic research in the following eight thrust areas:
  • Macroeconomic Management Financial Liberalisation and Regulation
  • Global Competitiveness of the Indian Economy – Agriculture, Manufacturing and Services
  • Multilateral Trade Negotiations and FTAs
  • Challenges and Opportunities of Urbanization
  • Climate Change and Sustainable Development
  • Physical and Social Infrastructure including Telecom, Transport, Energy and Health
  • Asian Economic Integration with Focus on South Asia
  • Promoting Entrepreneurship and skill development
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Tuesday, 4 July 2017

What is cryogenic engine

Significance in Space Programme

  • Cryogenic means low temperature. It refers to technology of sub zero temperatures and cryogenic engines use liquid oxygen as the oxidizer and liquid hydrogen as the fuel. Oxygen can be kept in liquid state below – 183° C temperature, while hydrogen requires temperature below – 253° C to be in liquid form. Moreover, the liquid oxygen is very reactive. So, much care is required to ensure that both come in contact only in the combustion chamber. Use of the liquid fuel instead of solid facts helps the engine produce greater thrust. The engine’s capability in thus of placing a far heavier payload.
  • Apart from this technological care, two quite different state of temperature are required to be maintained. Low temperature is to be maintained to keep propellant in liquid state while very high temperature and pressure are created by combustion to create a greater thrust in the combustion chamber. 
  • The advantage of the cryogenic engine was that it would develop 1 ½ times the thrust of conventional liquid rocket engines using fuel storable at room temperature.
  • ISRO crossed an important milestone in the development of indigenous cryogenic upper stage for the GSLV when the first cryogenic engine was ignited at the Liquid Propulsion System centre, Mahendragiri. The engine made by LPSC was expected to be used as the upper stage in the third launching of the GSLV.
  • The GSLV in capable of injecting 2500 kg. Class communication satellites into Geo-synchronous circular orbits at an altitude of 3600 km. Cryogenic engines are very useful in launching of heavy satellite launch vehicles like GSLV. India will become self-reliant in its space programmer after the development of this technology. The realization of the cryogenic technology would also help India to become a partner in space explorations and activities of other countries. Commercialization of this technology will get India precious foreign currency.




A cryogenic engine is a engine that uses a cryogenic fuel or oxidizer , that is, its fuel or oxidizer (or both) are gases
liquefied and stored at very low temperatures.
Cryogenic Engine makes use of Liquid Oxygen (LOX) and Liquid Hydrogen (LH2) as propellants which liquefy at -183 deg C and -253 deg C respectively. LOX and LH2 are stored in their respective tanks. From there they are pumped in to turbo pump by individual booster pumps to ensure a high flow rate of propellants inside the combustion/thrust chamber. The major components of a cryogenic rocket engine are combustion/thrust chamber, igniter, fuel injector, fuel cryo pumps, oxidizer cryo pumps, gas turbine, cryo valves, regulators, the fuel tanks and a rocket engine nozzle.
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Bio signature


A 'phenomenon' produced by life, either modern or ancient is 'Bio-signature'. Bio means life and signature means any mark that can prove identity. Thus, in simple words biosignature means using biological traits as identification and authentication mark of an individual have different traits in various aspects.
This can be characterized to produce biosignature.
Due to its unique biogenic characteristic, a definitive biosignature can be interpreted without question as having been produced by life.
Use of Biosignature in various areas:
Biosignatures are biological indicators obtainable through assays to ascertain facts about an individual's health or disease state, in biology, biochemistry and biomedical research.
Biosignatures are often use to determine which living organisms are or were present in a sample, in Geochemistry, Biogeochemistry and Geomicrobiology.
Biosignature can represent the fact of existence of life on extra-terrestrial surface, in astrobiology.
Thus, Biosignature may help in implementation of government programmes, diagnosis, disease, and defence purposes.
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Role Of Aerosols In Indian Monsoon


03-Jul-2017
Source: The Hindu
Why in news?
Researchers from Indian Institute of Tropical Meteorology, Pune, think that aerosols may be weakening the rainy season.
What is an Aerosol?
  • Aerosols are minute particles suspended in the atmosphere.
  • When these particles are sufficiently large, we notice their presence as they scatter and absorb sunlight.
  • Their scattering of sunlight can reduce visibility (haze) and redden sunrises and sunsets.
  • Aerosols are short-lived, unlike greenhouse gases that persist and accumulate in the atmosphere for longer period.
  • The bulk of aerosols — about 90% by mass have natural origins. Ex: Volcanoes.
  • The remaining 10% of aerosols are considered anthropogenic, or human-made, and they come from a variety of sources.
  • Automobiles, incinerators, smelters, and power plants are prolific producers of sulfates, nitrates, black carbon, and other particles.
  • Deforestation, overgrazing, drought, and excessive irrigation can alter the land surface, increasing the rate at which dust aerosols enter the atmosphere.

What are the direct effects of Aerosols?
  • I'm interact both directly and indirectly with the Earth's radiation budget and climate.
  • Different aerosols scatter or absorb sunlight to varying degrees, depending on their physical properties. Although
  • most aerosols reflect sunlight, some also absorb it.
  • Aerosol’s effect on light depends primarily on the composition and color of the particles.
  • Pure sulfates and nitrates reflect nearly all radiation they encounter, cooling the atmosphere.
  • Black carbon absorbs radiation readily, warming the atmosphere but also shading the surface.
  • Brown carbon or organic matter has a warming influence on the atmosphere depending on the brightness of the underlying ground.
  • Salt particles tend to reflect all the sunlight they encounter.
  • In addition to scattering or absorbing radiation, aerosols can alter the reflectivity, or albedo, of the planet.

What are the indirect effects of Aerosols?
  • As an indirect effect, aerosols in the lower atmosphere can
  • modify the size of cloud particles, changing how the clouds reflect and absorb sunlight, thereby affecting the Earth's energy budget.
  • Aerosols also can act as sites for chemical reactions to take place.
  • The most significant of these reactions are those that lead to the destruction of stratospheric ozone.
  • On a global scale, these aerosol “indirect effects” typically work in opposition to greenhouse gases and cause cooling.
  • Broadly speaking, aerosols are thought to suppress precipitation because the particles decrease the size of water droplets in clouds.

What did the IITM Pune study say?
  • A study by IIT Kanpur that came out in April, previously found that higher aerosol loading results in delayed but more rainfall over Central and Northern India.
  • But, this recent research by IITM Pune focusses on effect of aerosols on Indian monsoon.
  • Monsoon is weakening over the last 50 years. The recent reseach report that a mix of GHGs, aerosols and changes in forest and agricultural cover was affecting the strength of the monsoon.
  • Their computer simulations suggest that aerosols may be a far more important factor than GHGs and it is the
  • major cause of weakening of the monsoon.
  • A good monsoon is produced by the difference in temperature between land and sea.
  • But, the dust clouds shield the earth from the sun’s rays, depressing land and sea temperatures and reducing the variation between the two.
  • Because of this, the Indian monsoon is getting weakened by aerosol accumulation.

Monday, 3 July 2017

India America relation

Introduction
India and USA have come a long way since independence. India-U.S. bilateral relations have developed into a “global strategic partnership”, based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues.

  • The emphasis placed by the Government in India on development and good governance has created opportunity to reinvigorate bilateral ties and enhance cooperation under the motto — “ Chalein Saath Saath: Forward Together We Go” , and “Sanjha Prayas, Sab ka Vikas” (Shared Effort, Progress for All) adopted during the summits of our leaders in September 2014 and January 2015 respectively.
Regular exchange of high level political visits has provided sustained momentum to bilateral cooperation, while the wide-ranging and ever-expanding dialogue architecture has established a long-term framework for India-U.S. engagement. Today, the India-U.S. bilateral cooperation is broad-based and multi-sectoral, covering trade and investment, defence and security, education, science and technology, cyber security, high-technology, civil nuclear energy, space technology and applications, clean energy, environment, agriculture and health. Vibrant people-to-people interaction and support across the political spectrum in both countries nurture our bilateral relationship.
➨➨
Dialogue Architecture

There are more than 50 bilateral dialogue mechanisms between the two governments. The first meeting of the Strategic and Commercial Dialogue at the level of EAM and MoS(Commerce & Industry) was held in Washington DC on 22 September 2015; it has added a commercial component to the five traditional pillars of bilateral relations on which the erstwhile Strategic Dialogue has focussed, namely: Strategic Cooperation; Energy and Climate Change, Education and Development; Economy, Trade and Agriculture; Science and Technology; and Health and Innovation. In addition, there are Ministerial-level dialogues involving home (Homeland Security Dialogue), finance (Financial and Economic Partnership), commerce (Trade Policy Forum), HRD (Higher Education Dialogue), Science & Technology (Joint Commission Meeting on S&T) and energy (Energy Dialogue).
Important areas of convergence

Civil Nuclear Cooperation : The bilateral civil nuclear cooperation agreement was finalized in July 2007 and signed in October 2008. During Prime Minister Modi’s visit to the US in September 2014, the two sides set up a Contact Group for advancing the full and timely implementation of the India-US Civil Nuclear Cooperation Agreement, and to resolve pending issues. The Group has held five meetings so far, and reached agreement on the compatibility of India’s nuclear liability law with relevant international conventions and creation of an insurance pool drawing experience of best practices to take care of nuclear liability risk.

Defence Cooperation: 

Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with the signing of ‘New Framework for India-U.S. Defense Relations’ in 2005 and the resulting intensification in defence trade, joint exercises, personnel exchanges, collaboration and cooperation in maritime security and counter-piracy, and exchanges between each of the three services. The Defence Framework Agreement was updated and renewed for another 10 years in June 2015.

Counter-terrorism and internal security:

Cooperation in counter-terrorism has seen considerable progress with intelligence sharing, information exchange, operational cooperation, counter-terrorism technology and equipment. India-US Counter-Terrorism Cooperation Initiative was signed in 2010 to expand collaboration on counter-terrorism, information sharing and capacity building. A Homeland Security Dialogue was announced during President Obama’s visit to India in November 2010 to further deepen operational cooperation, counter-terrorism technology transfers and capacity building. Two rounds of this Dialogue have been held, in May 2011 and May 2013, with six Sub-Groups steering cooperation in specific areas. In December 2013, India-U.S Police Chief Conference on homeland security was organized in New Delhi. Police Commissioners from India’s top four metropolis paid a study visit to the U.S. to learn the practices of megacities policing in the U.S. in November 2015. The two sides have agreed on a joint work plan to counter the threat of Improvised Explosives Device (IED).

Science & Technology (S&T): 

The India-U.S. S&T cooperation has been steadily growing under the framework of U.S.-India Science and Technology Cooperation Agreement signed in October 2005. There is an Indo-U.S. Science & Technology Joint Commission, co-chaired by the Science Advisor to U.S. President and Indian Minister of S&T. The U.S. attended as the partner country at the Technology Summit 2014 at New Delhi.

Cultural cooperation:

Cultural cooperation between India and the U.S. is rich and manifest in diverse ways. Apart from the India-focused educational programs at the Universities and educational institutions, many private institutions teach Indian cultural arts. In addition to the website ‘www.indianembassy.org’ and social media channels, the Embassy provides updated information on various aspects of India that are relevant to the United States, through its various digital newsletters, including the weekly “India: Partner in Growth”, focusing on business and strategic matters, and the monthly “India Live”, providing information on initiatives of the Embassy and the Consulates, major developments in India, and in culture and tourism.
Renewed relations under President Trump
Ahead of Modi’s departure to the US, news reports said India was looking to buy $2 billion worth of US unmanned drones. The move is expected to be welcomed by the US, which is looking at improving its commercial links with Asia’s third largest economy.
Counter-terrorism, besides defence cooperation, was expected to be a common talking point at the meetings Modi was having with Mattis, Tillerson and Trump. India would like the US to lean on Pakistan to stem cross-border terrorism. The US, though, is focused on the spread of the Islamic State in Syria and nearby areas.
The first face-to-face meeting between US President Donald Trump and Indian Prime Minister Narendra Modi was sealed with a bear hug Monday, as the two leaders looked to publicly underscore their new found friendship.
Declaring the official meeting a success, Trump went on to describe the relationship between India and the United States as having “never been stronger, has never been better.”
Trump also took time to praise Modi’s Twitter prowess, we are “world leaders in social media,” said Trump, who has 32.9 million followers on his personal Twitter account, compared to Modi’s 31 million followers.
Modi meanwhile, described his White House visit as being “filled with friendliness” from the “opening tweet to the end of our talks.”
While the Trump administration hopes to “deepen” its relationship with India, the official added that they are “also interested in continuing our cooperation with Pakistan” and are “concerned about tensions between Indian and Pakistan.”
On the economic side, the two sides had very productive discussions. The economic changes in both countries are creating new demands and once you have the high-level comfort between India and the US, the other partner is well placed to meet those demands.
On the H-1B issue, there was a lot of discussion with business leaders and the two leaders about the digital partnership .
It is not that Trump chose to ignore the issues that concern him, but he did not let them dominate the proceedings . Trump duly noted his intent to reduce the US trade deficit with India .
He highlighted that the US is trying to get higher prices for a long-term contract to sell natural gas to India . He was glad to note an Indian airline’s recent order of “100 new American planes, one of the largest orders of its kind, which will support thousands and thousands of American jobs”. In the delegation-level talks, Trump also thanked Modi for the Indian government’s decision to purchase 22 unarmed Guardian drones from the US
.
Regional issues

The meeting pointed to other regional security concerns, with both leaders emphasizing the importance of Indian-US relations in helping to stabilize Afghanistan. “India and America have played an important role in rebuilding Afghanistan and ensuring its security.”In order to attain our objectives for peace and stability in Afghanistan, we will maintain close consultation and communication.”
The two leaders also “strongly condemned” continued provocations by North Korea emphasizing that its “destabilizing pursuit of nuclear and ballistic missile programs poses a grave threat to regional security and global peace,” according to the statement.

Thorny issues☜

The apparently jovial tone was in contrast to what had beenpredicted to be a tough meeting.
Both Trump and Modi have tried to boost domestic manufacturing in their own country.
Modi, under a program titled “Make in India,” has been looking for foreign companies to set up production in India. That runs counter to Trump’s “America First” messaging, where Trump is looking to punish American companies who ship jobs and production overseas.
Trump’s “ Buy American, Hire American” executive order, signed in April, overhauled the H-1B visa program primarily used by Indian engineers and developers.
While, earlier this month, Trump singled out India during his announcement declaring the United States’ withdrawal from the Paris Agreement on Climate Change.
Trump accused India of receiving “billions” of dollars in return for signing the accord, an allegation that India refuted. A joint statement issued by both leaders did not mention either issues directly, and instead focused on the two leaders’ pledge to “expand and deepen the strategic partnership between the countries and advance common objectives” by providing “strong leadership to address global challenges.”
Seeking to downplay potential policy conflicts, Modi suggested that economic growth was not a zero-sum game. “India’s interests lie in a strong, and prosperous, and successful America,” said Modi during their press briefing. “In the same way, India’s development and its growing role at the international level are in the USA’s interest.”

Conclusion

The just-concluded visit of Indian Prime Minister Narendra Modi to the US was billed as a “no frills” summit. Indian officials were extremely careful to keep expectations low. The ploy seems to have worked, as the outcome of this “get to know each other” meeting between Modi and US President Donald Trump has been surprisingly pleasant.
Along with the common democratic ethos—the rhetoric of India and the US being the largest and oldest democracies is actually more than just purple prose—the assumption of America’s global role underwrote the advances made in the India-US bilateral relationship. Moreover, Trump’s struggle in the domain of foreign policy—he has driven relations south with almost all US allies and his hopes for a turnaround with Russia and China haven’t exactly materialized—so far did not inspire much confidence in New Delhi.
While the joint statement is nothing more than a statement of intent, it is clear that India, which is not a formal US ally, seems to have adapted better to the Trump presidency than many long-standing US allies. When looked at closely, this is not much of a surprise. Most of the post-World War II alliances had lost their meaning after the disintegration of the Soviet Union, but they continued in the renewed spirit of globalization and multilateralism that took over the world.
The economic and strategic logic began to be questioned only when the distributional problems of free trade acquired political momentum in the long shadow of the Great Recession of 2008. In a new and unfamiliar moment for US allies, their inability to spend their required quota on defence began to be resented in America.
On the other hand, the logic of partnership with India was based on a strategic rationale that continues to be valid: the rise of China, and its consequences. China is not the only binding factor between India and the US but it is a very important one . This is where the non-proliferation activists in Washington and a few others who were haggling on different clauses of the Indo-US nuclear deal had missed the big picture. If globalizing forces formed the predominant logic behind the Indo-US partnership, this summit would not have been half as successful.

India-Israel Trade Ties


Source: Business Line
 03-Jul-2017
Why in news?
Prime Minister’s Israel visit will set the stage for partnerships in defence and agriculture.
What are the highlights of Israel technology?
  • Israel has become the centre for R&D in the area of autonomous car technology.
  • It has a long line of dynamic innovation ecosystem outside America.
  • Israel tackled its rain deficiency by developing technology solutions for water reuse in agriculture and industry.
  • Israel’s low inflation and rising labour force participation has a lot to offer businesses.

What is the status of India-Israel trade relationship?
  • India has bilateral ties with Israel in areas of security, defence and agriculture.
  • The bilateral trade currently reached $4.5 billion from $200 million in 1992.
  • The presence of Israeli companies in India has grown to 300.
  • India exports precious stones, metals, chemical products, textile, rubber & plastic products, and base machinery to Israel.
What are the areas of trade to be concentrated?
  • Israeli defence industries are well inclined towards joint ventures to give a boost to the ‘Make in India’ campaign.
  • India-Israeli deal to jointly develop a medium range surface-to-air missile system is a good business model to work on.
  • A joint research and development fund can work wonders.
  • Indian-Israeli companies with their innovation can together stimulate domestic manufacturing and agriculture sector.
  • The Israeli dairy genetic material can revolutionise the dairy industry in India.

Rashtriya Vayoshri Yojana


  • RashtriyaVayoshriYojana”, a ‘Scheme for providing Physical Aids and Assisted-living Devices for Senior citizens belonging to BPL category’ was launched in District Nellore, Andhra Pradesh on 1st April, 2017.
  • The Physical Aids and Assisted-living Devices for Senior citizens will be distributed in Camp mode.
  • And the Scheme will be implemented through the sole implementing agency, ‘Artificial Limbs Manufacturing Corporation (ALIMCO)’, (a PSU under M/o social justice and empowerment), which will undertake one year free maintenance ofthe aids & assisted living devices.
  • The ambitious Scheme, first of its kind in the country is expected to benefit 5,20,000 Senior Citizens over a period of the 3 years.
  • This is a Central Sector Scheme, fully funded by the Central Government. The expenditure for implementation of the scheme will be met from the “Senior Citizens’ Welfare Fund“.
  • Under the scheme, free of cost distribution of the devices, commensurate with the extent of disability/infirmity that is manifested among the eligible senior citizens will take place.
  • Beneficiaries in each district will be identified by the State Governments/UT Administrations through a Committee chaired by the Deputy Commissioner/District Collector.


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Sunday, 2 July 2017

India And US – Maritime Cooperation

02-Jul-2017

Source: Business Standard


What is the issue?
  • In the recently concluded Modi-Trump interface,
  • maritime security was stressed thrice by the US president.
  • The joint statement acknowledged the need for both countries to play meaningful and legitimate roles in the ‘Indo-Pacific’ and to ensure freedom of movement at sea consistent with international norms.
What does it mean for India?
  • The term “Indo-Pacific” was first coined by then Secretary of State Hillary Clinton in 2008.
  • The Americans soon shied away from it and put out the more convoluted terminology of “Indo-Asia-Pacific”.
  • By using the old term again, it seems that the US recognises India’s legitimate role in waters stretching from the Suez Canal to the waters of the western Pacific.
  • India is an Indian Ocean Region (IOR) player, but given its size, interests and growing maritime trade, its concerns extend beyond it.
  • So, even though India is not a South China Sea littoral state, it cannot remain excluded from developments that are taking place there.
  • Its inclusion as party to the Indo-Pacific provides exactly that recognition. And, this is fully consistent with our long-term interests.

How cooperation at sea should be?
  • Cooperation at sea involves not just ships carrying out exercises over a couple of days, but understanding the whys and the wherefores.
  • This can come about only if there is some degree of synergy of doctrines, and for this to happen information sharing is important. So, some compromise seems necessary.
  • In the IOR, India has to become a net security provider and that will often require joint operations with the US.
  • Also, the Malabar series is clearly an Indo-Pacific event and lends credibility to India’s aspirations and potential.
  • Meanwhile, these elements must be added the American clearance for the supply of nearly two dozen Guardian drones for the Indian Navy.
  • The Indian Navy also has an enquiry ongoing for nearly
  • five dozen fighter aircraft to operate from aircraft carriers at sea.
  • Procurement of major military hardware must always be seen through the prism of geopolitical interests more than just financial cost.
  • The dialogue just concluded gives India an opportunity to make the required course correction.

Saturday, 1 July 2017

New Committee On National Educational Policy



 01-Jul-2017 Source: Financial Express
Why in news?
HRD ministry announced new eight member committee on National education policy recently.
What were the recommendations of Subramaniam committee?
  • T.S.R.Subramaniam committee was formed in the year 2015 and the committee submitted following recommendations.
  • Indian Education Service (IES) should be established as an all India service with the cadre controlling authority vesting Resource HRD ministry.
  • The outlay on education should be raised to at least 6% of GDP without further loss of time.
  • Teacher Entrance Tests (TET) should be made compulsory for recruitment of all teachers.
  • Compulsory licensing for teachers in government and private schools should be made mandatory.
  • Pre-school education for children in the age group of 4 to 5 years should be declared as a right .
  • The no detention policy must be continued for young children until completion of class V when the child will be 11 years old.
  • A National Level Test open to every student who has completed class XII from any School Board should be designed.
  • The mid-day meal (MDM) program should now be extended to cover students of secondary schools.
  • The University Grants Commission (UGC) needs to be made leaner and thinner and given the role of disbursal of scholarships and fellowships.
  • Top 200 foreign universities should be allowed to open campuses in India.
What are the issues with these recommendations?
The original report recommended that political parties to be banned from appointing Vice Chancellors for universities.
A radical reform it had recommended is separate bureaucratic framework for HRD functions.
An autonomous body to handle the selection of teachers for government schools and colleges was also recommended.
These recommendations may not have been new, but nearly all of them broke with the dogmas of the past.
What is the purpose of new committee?
The government is not satisfied with the reports of TSR Subramanian Committee.
Fresh and comprehensive reports are the main objectives for the government to announce the new committee.
The new committee will be headed by ISRO chief K Kasturirangan.
The new committee will consider inputs from the Subramanian committee reports.
What should be done?
The government’s intention on reforming education would be successful only when it is ready to accept the recommendations and implement them.


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E-NAM Initiative


Source: Financial Expres
 01-Jul-2017
What is the issue?
The new initiative, e-NAM, is expected to solve the problems surrounding agrarian output market.
What are the existing problems in farmers market?

  • Competition in labour, input prices are increasing.
  • Market domination by organised traders.
  • Friction between inefficient markets for agri-output and efficient markets for their inputs.
  • Farmers must buy and sell only in the government-designated Agricultural Produce Marketing Committee (APMC) market-yards.

What is the e-NAM?
https://www.facebook.com/Aovious1


  • The electronic National Agriculture Market (e-NAM) platform seeks to create a common national market, for enhancing farmers’ access to buyers.
  • It will make price discovery and trading transparent.
  • So far, 417 mandis in 13 states have joined the e-NAM platform
  • There is a target of connecting 585 mandis with e-NAM by March 31, 2018.

What are the advantages of e-NAM?

  • Transparent and robust electronic physical markets.
  • Greater standardisation and quality awareness.
  • Easier access of buyers by the producers.
  • Reduced price of products due to reduced costs of intermediation.
  • Open market and competitive price fixing is possible.
  • Easier taxation of agricultural income.

How effectively e-NAM can be implemented?

  • With wide participation and perfect sync between markets and stakeholders e-NAM can be successful.
  • e-NAM authorities can work to encourage farmers to produce better quality crop and meeting exchange standards.
  • Price distribution alerts through mobile phones could serve as a reliable reference price for farmers.
  • Monitoring the warehouses for the incoming and outgoing stocks will make the initiative stronger.
  • The profiles of the farmers linked with e-NAM can be used for credibility reports by financial institutions.
  • Indian agriculture needs robust and transparent institutions for e-NAM to deliver long-term benefits.


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GST explained


What is GST?

‘G’ – Goods
‘S’ – Services
‘T’ – Tax

“Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level under which no distinction is made between goods and services for levying of tax. It will mostly substitute all indirect taxes levied on goods and services by the Central and State governments in India.
GST is a tax on goods and services under which every person is liable to pay tax on his output and is entitled to get input tax credit (ITC) on the tax paid on its inputs(therefore a tax on value addition only) and ultimately the final consumer shall bear the tax”.

OBJECTIVES OF GST:

One of the main objective of Goods & Service Tax(GST) would be to eliminate the doubly taxation i.e. cascading effects of taxes on production and distribution cost of goods and services. The exclusion of cascading effects i.e. tax on tax till the level of final consumers will significantly improve the competitiveness of original goods and services in market which leads to beneficial impact to the GDP growth of the country.
 Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes is not only desirable but imperative. Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax based on VAT principle.

Let’s know the structure of GST
It would have a dual structure , a Central component levied and collected by the Centre and a state component administered by states.
At the Central level, it will subsume Central excise duty, service tax and additional customs duties.
At the state level, it will include value-added tax(VAT), entertainment tax, luxury tax, lottery taxes and electricity duty.
The central government will have the
exclusive power to levy and collect GST in the course of interstate trade or commerce, or imports. This will be known as Integrated GST (IGST).
Tobacco and tobacco products will be subject to GST. The centre may also impose excise duty on tobacco.
The 2016 Act requires Parliament to compensate states for any revenue loss owing to the implementation of GST.

What taxes at centre and state level are incorporated into the GST?

At the State Level:
  • State Value Added Tax/Sales Tax
  • Entertainment Tax(Other than the tax levied by the local bodies)
  • Octroi and Entry Tax
  • Purchase Tax
  • Luxury Tax
  • Taxes on lottery, betting and gambling

At the Central level:
  • Central Excise Duty
  • Additional Excise Duty
  • Service Tax
  • Additional Customs Duty(Countervailing Duty)
  • Special Additional Duty of Customs

The benefits of Goods and Service Tax (GST)
GST is beneficial not only for the business and industry, but also for the government and consumers. Here, we bring the ten benefits of Goods and Service Tax (GST).

1. Easy compliance:
A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers
online , which would make compliance easy and transparent.
2. Uniformity of tax rates and structures:
GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business .
3. Removal of cascading:
A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes . This would reduce hidden costs of doing business.
4. Improved competitiveness:
Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry. World Bank believes that the implementation of the Goods and Service Tax (GST), combined with dismantling of inter-state check-posts, is the most crucial reform that could improve competitiveness of India’s manufacturing sector.
5. Gain to manufacturers and exporters:
The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST)
would reduce the cost of locally manufactured goods and services . This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports . The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.
6. Simple and easy to administer:
Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.
7. Better controls on leakage:
GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.
8. Higher revenue efficiency:
GST is expected to decrease the cost of collection of tax revenues of the Government , and will therefore, lead to higher revenue efficiency.
9. Single and transparent tax proportionate to the value of goods and services:
Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer , leading to
transparency of taxes paid to the final consumer .
10. Relief in the overall tax burden:
Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage . Because of efficiency gains and prevention of leakages , the overall tax burden on most commodities will come down, which will benefit consumers. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Supporting Laws to implement GST


For the implementation of GST, apart from the Constitution Amendment Act, some other statutes are also necessary. Recently 5 supporting laws to the GST were recommended by the council. 4 for the bills should be passed by the parliament, while the 5th one should be passed by respective state legislatures. The details are given below.
  • 1. The Central Goods and Services Tax Bill 2017 (The CGST Bill).
  • 2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill).
  • 3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill).
  • 4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
  • 5. And a state GST will be passed by the respective state legislative assemblies.
Tax slabs are decided as 0%, 5%, 12%, 18%, 28% along with categories of exempted and zero rated goods for different types of goods and services.
Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States.
However, which goods and services fall into which bracket is still an enormous task to be completed by the GST council.
Highest tax slab is pegged at 40% .

  • Brief information about each of them is as follows
Constitution 101st amendment Act, 2016
This is the enabler act for GST and it amends several important articles and schedules of the constitution of India 

The new articles added by this amendment to Indian Constitution are Article 246-A (Special provision with respect to goods and services tax); Article 269-A ((Levy and collection of goods and services tax in course of inter-State trade or commerce) and Article 279A (GST Council).
Two schedules have been changed viz. 6 th schedule and 7 th
As per article 246-A:
Both Union and States in India now have “concurrent powers” to make law with respect to
goods & services
The intra-state trade now comes under the jurisdiction of both centre and state; while inter-state trade and commerce is “exclusively” under central government jurisdiction.
As per Article 269-A:
In case of the inter-state trade, the tax will be levied and collected by the Government of India and shared between the Union and States as per recommendation of the GST Council.
The article also makes it clear that the proceeds such collected
will not be credited to the consolidated fund of India or state but respective share shall be assigned to that state or centre. The reason for the same is that under GST, where centre collects the tax, it assigns state’s share to state, while where state collects tax, it assigns centre’s share to centre. If that proceed is deposited in Consolidated Fund of India or state, then, every time there will be a need to pass an appropriation tax. Thus, under GST, the apportionment of the tax revenue will take place outside the Consolidated Funds.
Article 279-A:
There will be a GST council constituted by President, headed by finance minister as its chairman and one nominated member from each state who is in charge of finance or taxation. GST Council has been discussed in detail here.
All decisions taken at the GST council will be taken based on voting. Process of voting is clearly articulated in detail in the constitutional amendment bill.
Other Changes
  • The residuary power of legislation of Parliament under article 248 is now subject to article 246A.
  • Article 249 has been changed so that if 2/3rd majority resolution is passed by Rajya Sabha, the Parliament will have powers to make necessary laws with respect to GST in national interest.
  • Article 250 has been amended so that parliament will have powers to make laws related to GST during emergency period.
  • Article 268 has been amended so that excise duty on medicinal and toilet preparation will be omitted from the state list and will be subsumed in GST.
  • Article 268A has been repealed so now service tax is subsumed in GST.
  • Article 269 would empower the parliament to make GST related laws for inter-state trade / commerce.
Issues Arisen OR Unresolved


  • Not all items are covered: Taxation for certain items such as Alcohol, Tobacco etc. are still not under the GST domain. States argue that including them would hamper their revenue and they would suffer a huge resource. However, some experts say that the real reason is the nexus of politicians with some business class and high profile lobbying. Further, the Finance minister of India has said in the parliament that the consensus to include alcohol and tobacco under GST regime is possible in foreseeable future.
  • Decision criteria for the tax bracket: There are apprehensions that how to decide about the items and the criteria that which item will fall into which tax bracket. It may lead to lobbying. To this, the Finance minister has said that the decision will be taken by the GST Council only and after due diligence and most probably by the consensus.
  • Multiple tax rates and brackets: The philosophical idea that GST means “One Nation one Tax” is currently diluted due to multiple tax rates and brackets. To this, the Finance minister has said that since the target consumer of goods and services have different capabilities and therefore there must be a system similar to the democratic lines where higher value consumer pays more taxes .
  • Power to impose tax taken away by Central Government from the Parliament: The Central GST Bill, 2017 allows the central government to notify CGST rates, subject to a cap. This implies that the government may change rates subject to a cap of 20% , without requiring the approval of Parliament. Under the Constitution, the power to levy taxes is vested in Parliament and state legislatures. Though the proposal to set the rates through delegated legislation meets this requirement, the question is whether it is appropriate to do so without prior parliamentary scrutiny and approval.
  • Confusion regarding the location of consumption: Under GST, both state and Centre can tax the services based on their location of consumption . Now the confusion arises since the general rule to determine the location of the recipient is his location or address on record; there are specific rules for various services such as telecom, property, transportation, etc. This means that while a service may be consumed across multiple states, the tax revenue would be attributed to the state where the recipient is registered or his office is located. This could lead to higher tax attributed to states that have more registered offices. For example , suppose a company is located in Bangalore and advertises its products in the Kolkata edition of a newspaper, which has its registered office in Delhi. In this case, one may argue that the service is being finally consumed in Kolkata. However, as the recipient of services is in Bangalore, the tax would accrue to Karnataka.
  • Anti-Profiteering Clause: The government is planning to set up an authority to see if any reduction in tax rates after GST is passed on to the consumer by companies or not. The industry and businesses are not taking this idea kindly and they see it as a backdoor entry of inspector raj. Experts say that prices should be market determined and no government authority has the business of deciding prices for goods and services.
  • Confusion regarding the control over taxation: To avoid dual control, the GST council has reached a compromised formula. 90 percent of tax assesses with an annual turnover of Rs 1.5 crore or less, will be assessed by states and the rest by the Centre. For those with a turnover of over Rs 1.5 crore, the states and the Centre will share it equally. However, this ‘solution’ has its own set of issues . For example, if an entity with a turnover of less than Rs 1.5 crore in one year, posts a turnover of Rs 1.5 crore in the following financial year, who would be the new authority to take over the assessment? And, how will the existing investigations, if any, against the entity be addressed, and by whom? “There are a lot of procedural issues, and if these issues are not addressed properly, they would lead to litigations.
  • The issue of casual taxable person: If a person registered in one state moves to another state for a short period for some business transaction – say to participate in a fair or exhibition, then that person would have to get himself registered in that state for that period.
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History of GST

  • 1986: VishwanathPratap Singh, Finance Minister in Rajiv Gandhi’s government, proposed in the Budget a major overhaul of the excise taxation structure. This was similar to GST in a theoretical sense.
  • 2000 : Initiating discussions on GST, Vajpayee government appoints an Empowered Committee headed by the then finance minister of West Bengal Asim Gupta.
  • 2004 : Vijay Kelkar, then advisor to the Finance Ministry, recommends GST to replace the existing tax regime.
  • Feb 28, 2006 : GST appears in the Budget speech for the first time . Finance Minister Chidambaram sets an ambitious task of implementing GST by April 1, 2010.
  • Feb 28, 2007 : Chidambaram said in his Budget speech that the Empowered Committee of finance ministers will prepare a road map for GST.
  • April 30, 2008 : The Empowered Committee submits a report titled ‘A Model and Roadmap Goods and Services Tax (GST) in India’ to the government.
  • Nov 10, 2009 : Empowered Committee submits a discussion paper in the public domain on GST welcoming debate.
  • Feb 2010 : Government launches project for computerisation of commercial taxes. Finance Minister Pranab Mukherjee defers GST to April 1, 2011.
  • March 22, 2011 : Constitution Amendment Bill (115th) to GST introduced in the LokSabha
  • March 29, 2011 : Bill referred to Standing Committee on Finance.
  • Nov 2012 : Finance minister and state ministers decide to resolve all issues by Dec 31, 2012.
  • Feb 2013 : Declaring government’s resolve to introduce GST, the finance minister makes provisions for compensation to states in the Budget.
  • Aug 2013 : The standing committee submits a report to Parliament suggesting improvements. But the bill lapsed as the 15th LokSabha was dissolved.
  • Dec 18, 2014: Cabinet approval for the Constitution Amendment Bill (122nd) to GST.
  • Dec 19, 2014 : The Amendment Bill (122nd) in the LokSabha
  • May 6, 2015: The Amendment Bill (122nd) passed by the LokSabha.
  • May 12, 2015 : The Amendment Bill presented in the RajyaSabha
  • May 14, 2015 : The Bill forwarded to joint committee of RajyaSabha and LokSabha
  • Aug 2015 : Government fails to win the support of Opposition to pass the bill in the RajyaSabha where it lacks sufficient number.
  • Aug 3, 2016: RajyaSabha passes the Constitution Amendment Bill by a two-thirds majority. Note: GST
  • constitutional amendment bill needs to passed by at least 50% of state legislatures to be implemented. Assam is 1 State to pass GST bill.
  • 1 July 2017 : GST  applicable across India.

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