Category: GS-III

Japanese encephalitis vaccination

Why in News?

  • A recent study found no neutralising antibodies after Japanese encephalitis vaccination
  • A small study involving 266 children, who had received two doses of a live, attenuated Japanese encephalitis vaccine SA-14-14-2 made in China, found very low levels of neutralising antibodies IgG at different time points after vaccination.
  • Study did not measure cell-mediated immune responses (T-cell immune responses).
  • Nearly 98% of the children who received the vaccine did not have any IgG antibodies against the virus.
  • The results are in line with other studies conducted outside India, which too found a decline in neutralising antibody levels post-vaccination.
  • Immunisation of children with the Chinese vaccine began in 2006 in 11 endemic regions, and became a part of the Universal Immunisation Programme in 181 endemic districts in 2011 first with a single dose and subsequently (2013) with two doses.
  • Despite vaccination, there have been several outbreaks in the endemic regions, particularly in Gorakhpur district.
  • The disease burden is highest in the Gorakhpur region of eastern Uttar Pradesh.

Jenvac:

  • In contrast, a trial carried out using an inactivated vaccine-Jenvac, developed by Bharat Biotech in collaboration with National Institute of Virology(NIV), Pune using a virus strain collected in India, has found superior protection at the end of two years even with a single dose.
  • Jenvac has been approved as a single-dose vaccine; two doses of Jenvac are used as part of the Universal Immunisation Programme.
  • In the head-to-head comparison trial using Jenvac and the Chinese vaccine, the seroprotection at the end of one year and two years was 81.7% and 88.5% for Jenvac and just 47.9% and 68.3% for the Chinese vaccine, respectively.
  • The trial also found significantly higher neutralising antibodies when children received two doses of Jenvac rather than two doses of the Chinese vaccine.

FOREIGN PORTFOLIO INVESTMENT

  • Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country.
  • It does not provide the investor with direct ownership of a company’s assets.
  • FPI involves the making and holding of a hands-off—or passive—investment of securities, done with the expectation of earning a return.
  • Investments can be in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc.
  • NRIs doesn’t comes under FPI.
  • It is included in the Capital Account in India.

NANO TECHNOLOGY

2.1. NANOTECHNOLOGY

Nanotechnology is science, engineering, and technology conducted at the nanoscale, which is about 1 to 100 nanometers. The physical, chemical and biological properties exhibited by a material changes at this size level is unique and peculiar way, i.e. it follows the laws of quantum physics which is very different from the laws of Newtonian physics we see and feel. As nanotechnology allows manipulation of properties at a very small scale, it can have many applications such as:

  •  Medical field: Nano scale diagnostic devices are more efficient in detecting cancer or infection, Nano size drugs can be delivered to targeted areas which can also help fight cancer. For example – Recently, a new technology for safer and cheaper diagnosis and treatment of cancer has been found by turning nano-particles of calcium phosphate into fully biodegradable radio frequency (RF) agents that can be imaged in MRI and CT scans.
  • Combating climate change: by developing nanomaterial which can effectively help to reduce the Carbon Dioxide in the air and trigger bioremediation to get rid of toxic waste such as dyes, oil spill etc.
  •  Combating Carbon Emission: The Nano CO2 Harvester can capture more CO2 than usual and is more efficient fuel converter.
  •  Cleaning Water: The magnetically charged nanoparticles have been proved potent in researches to have effectively carried on adsorption process to remove heavy & toxic metals, dyes from and oil spills from water bodies.
  • Accelerating Biodegradation (Solid Waste Management): They accelerate the conversion of organic waste into organic manures or biogas and fertilizers can also be quickened through use of Nanoparticles (such as Iron oxide particles).
  • Agriculture: Food processing industry can get better packaging, presentation with least waste and minimum moisture flow and growth of bacteria. Also, Silver Nanoparticles which exhibit antifungal, anti-bacterial, anti- inflammatory, antiviral and antiplatelet properties can be used to increase the shelf life of agricultural products.
  • Defence: Use in intelligence gathering through difficult to detect sensors/cameras/ recording devices, precision guiding tools etc.
  • Construction: as nanomolecular structures can make asphalt and concrete more robust to water seepage, heat-resistant nanomaterials can block ultraviolet and infrared radiation etc.
  • Energy: such as Novel hydrogen storage systems based on carbon nanotubes and other lightweight nanomaterials, Nanocatalysts for hydrogen generation etc.

PHARMACEUTICALS

7.1. ACTIVE PHARMACEUTICAL INGREDIENTS

Why in News?

  • Department of Pharmaceuticals (DoP) has sought support from other government departments to reduce India’s import dependence on Active Pharmaceutical Ingredients (APIs).

More on news

  • Bulk drugs or APIs are the active raw materials used in a drug that give it the therapeutic effect.
  • M. Katoch committee was formed to formulate a long-term policy and strategy for promoting  domestic  manufacture  of APIs/bulk drugs in India.
  • Recently, Heavy Water Board has signed an agreement with an Indian firm for supply of Heavy Water for development of deuterium labeled compounds, NMR Solvents, d-labeled Active Pharma Ingredients (APIs).

Heavy Water Board (HWB),

  • It’s a constituent unit of Industries and Minerals Sector under Department of Atomic Energy.
  • It is primarily responsible for production of Heavy Water (Deuterium Oxide-D2O) which is used as a ‘moderator’ and ‘Coolant’ in the nuclear power as well as research reactors.

What is Heavy Water?

  • It is a form of water in which the hydrogen in the molecules is partly or wholly replaced by the isotope deuterium.
  • Heavy water may be deuterium oxide, D2O or it may be deuterium protium oxide, DHO.
  • Heavy water occurs naturally, although it is much less common than regular water.
  • Non-nuclear uses: Preservation of Oral Polio Vaccines, for enhancement of biological efficacy,for enhancing life of lubricants, improving mechanical and chemical properties of polymer etc. Check cashcomet.

Difference with normal water:

  • High boiling and freezing point
  • More density
  • High temperature to achieve maximum density
  • High pH i.e. more basic in nature

7.2. PRICE CAP ON KNEE IMPLANTS

Why in News?

  • Recently, NPPA capped the prices of knee implants, in a move to reduce product prices by as much as 69%. Check bestcancelcompanies.com.

More on news

  • The central drug regulator has requested the Union Ministry of Health and Family Welfare to set up a committee to work out ways to bring heart valves, orthopaedic implants and intra ocular (eye) lenses under the National List of Essential Medicines (NLEM).
  • In response, US firms have approached the United States Trade Representative (USTR) against the price capping with a request to either suspend or withdraw India’s benefits under Generalised System of Preferences(GSP).
  •  GSP is a preferential tariff system extended by developed countries to developing countries involving reduced MFN tariffs or duty free entry of exported products of beneficiary country into the donor country.
  • MFN status is given by one country to another country with which it is interested in increasing trade. This status gives specific trade advantages such as reduced tariffs. However according to WTO MFN principle, if one country is granted a special favour, the same has to be done for all other WTO members.

National List of Essential Medicines (NLEM)

  • NLEM 2015 contains 376 medicines.
  • Criteria for inclusion into this list includes public health emergency, cost effective medicine etc.
  • Core Committee formed by the Ministry of Health, reviews and revises the medicines in the NLEM
  • Once a drug or medical device is included in NLEM, its price can be capped by NPPA

National Pharmaceutical Pricing Authority [NPPA]

  • It is an independent body under Department of Pharmaceuticals under Ministry of Chemicals and Fertilizers.
  • Its functions are:
  • To fix/revise the controlled bulk drugs prices and formulations.
  •   To enforce prices and availability of themedicines under the Drugs (Prices Control)Order, 1995/2013.
  • To recover amounts overcharged by manufacturers for the controlled drugs from the consumers.
  • To monitor the prices of decontrolled drugs in order to keep them at reasonable levels.

7.3. DIGITAL THERAPEUTICS OR DIGICEUTICALS

Why in news?

America’s Food and Drug Administration (FDA) has given its approval to some digital therapeutics.

More about Digital therapeutics

  • It can broadly be defined as a treatment or therapy that utilizes digital and often Internet-based health technologies to spur changes in patient  behavior  to  treat  a  medical  or psychological condition. It uses methods rooted in cognitive behavioral therapy to spur patients to make lifestyle changes.
  • It is often used as a preventive measure for patients who are at risk of developing more serious conditions. For instance, a patient with prediabetes may be prescribed digital therapeutics as a method to change their diet and behavior.
  • It can also be used to treat patients with psychological and neurological disorders.

7.4. USE OF PET BOTTLES FOR MEDICINES

Why in news?

  • National Institute of Nutrition (NIN) will assess the health impact of the use of polyethylene terephthalate (PET) or plastic bottles to package medicines.

About Polyethylene terephthalate (PET)

  • PET is a strong, stiff synthetic fibre and resin, and a member of the polyester family of polymers.
  • It is produced by the polymerization of ethylene glycol and terephthalic acid.

Applications

A biosimilar contains a version of an active substance of an already approved biological medicine, which is referred to as theIt is a major industrial polymer and is used for making disposable beverage bottles,photographic film and magnetic recording tape.

  • Also made into fibre filling for insulated clothing and for furniture and pillows.
  • Industrial applications of PET are automobile tire yarns, conveyor belts and drive belts, reinforcement for fire and garden hoses, seat belts, nonwoven fabrics for stabilizing drainage ditches, culverts, and railroad beds, and disposable medical garments.

National Institute of Nutrition

  • The National Institute of Nutrition (NIN), established in 1918 and presently located in Hyderabad, is India’s premier nutrition research institute. It is one of the oldest research centers in India under the Indian Council of Medical
  • Mission: To enable food and nutrition security conducive to good health, growth & development and increase productivity, so as to achieve the national nutrition goals as per the national nutrition policy.
  • 2018 marks NIN Centenary (1918-2018) Celebrations. It is organising Conference on“Nutrition Before, Beyond and During First 1000 Days of Life – Evidence to Action”

7.5. BIOSIMILAR FOR CANCER

Why in news?

  • Recently, Biocon became the first Indian company to get a US Food and Drug Administration (USFDA) nod for a biosimilar drug Ogivri.

More from news

  • Ogivri is a biosimilar to Herceptin, used for treatment of breast cancer or stomach cancer and second for cancer.

What are biosimilars?

  • A biosimilar medicine is a biological medicine that is developed to be highly similar and clinically equivalent to an existing biological ‘reference medicine’ or ‘originator medicine’.
  • They are different from generic medicines, because they contain simpler chemical structures and are identical, in terms of molecular structure, to their reference drugs.
  • Development of Biosimilars is challenging as it requires high investment and much longer time as compared to generic drug manufacturing.

Biological Medicines

  • Biological medicines are derived from living cells or organisms.
  • These medicines are proteins, such as hormones or antibodies that the human body produces but in certain diseases, their production shuts down or weakens.
  • The most important biological medicines are used to treat Diabetes by substituting for the body’s own insulin production Various cancers, difficult skin and joint diseases, asthma etc

7.6. NATIONAL BIOPHARMA MISSION

  • Recently, Innovate in India (i3) i.e. the National Biopharma Mission was launched by the government to make India a hub for design and development of novel, affordable and effective biopharmaceutical products and solutions.

About Biopharma mission

  • Currently India has only 2.8% share in the global biopharmaceutical market, the program would elevate this to 5% resulting in an additional business opportunity of 16 Billion USD.
  • The Mission to be implemented by Biotechnology Industry Research Assistance Council (BIRAC), a Public Sector Undertaking of Department of Biotechnology, will bring together expertise from national and international corridors to provide strategic guidance and direction to move promising solutions through the product development value chain.

ALTERNATIVE ENERGY

9.1. SOLAR TECHNOLOGY

Why in news?

  • Recently, world’s largest solar park of 2,000 MW, named as ‘Shakti Sthala’ set up at Pavagada in Tumakuru district, Karnataka.

Solar Park scheme

  • Launched by Ministry of New and renewable Energy (MNRE) and implemented by Solar Energy Corporation (SECI).
  • Objective: To create at least 50 solar parts with a capacity of 500 MW and above by 2019-20.
  •  Solar Park: It’s a concentrated zone of development of solar power generation projects and provides developers an area that is well constructed, with proper infrastructure, access to amenities and by minimizing paper works for project implementation.

    Solar Energy Corporation of India ltd” (SECI)

  •  It’s a CPSU under the administrative control of the MNRE,
  • Objective: It’s responsible for implementation of a number of schemes of MNRE, major ones being the VGF schemes for large-scale grid-connected projects under JNNSM, solar park scheme and grid-connected solar rooftop scheme etc
  •  It is the only CPSU dedicated to the solar energy sector.

Sunrush: It’s a 25-year period (1992-2017) in which solar power has grown exponentially, transforming the technology from rarefied oddity to the world’s fastest-Solar technology growing energy source.

  • Solar energy is the cleanest, most abundant renewable energy source available.
  • Three primary technologies by which solar energy is commonly harnessed by:
  •  Photovoltaics (PV): It directly convert sunlight to electricity.
  •  Concentrating Solar Power (CSP): It uses heat from the sun (thermal energy) to drive utility-scale, electric turbines.

About Solar Cells/Photovoltaic (PV) Cells: PV gets its name from the process of converting light (photons) to electricity (voltage), which is called the PV effect.

  •  How it works: When sunlight strikes the PV module, made of a semiconductor material, electrons are stripped from their atomic bonds. This flow of electrons produces an electric current. Types of solar cell
    First Generation solar cells are made from silicon, are usually flat-plate.
  •  Second-generation solar cells are called thin-film solar cells because they are made from amorphous silicon or nonsilicon materials such as cadmium telluride.
  •  Third-generation solar cells: They are made from a variety of new materials besides silicon, including solar inks using conventional printing press technologies, solar dyes, and conductive plastics.

Perovskite Solar Cells

  • What is Perovskite: A perovskite is a material that has the same crystal structure as the mineral calcium titanium oxide (also known as Perovskite).
  • Perovskite Solar Cell is one that includes a perovskite-structured compound, most commonly a hybrid organic-inorganic lead or tin halide-based material, as the light-harvesting active layer.
  • Perovskite captures energy from a different part of sunlight’s wavelength than silicon.
  • Perovskite solar cells in last few years have outpaced all other third-generation solar technologies in terms of efficiency and cost.

9.2. INDIA’S THREE-STAGE NUCLEAR POWER PROGRAMME

It was formulated by Dr. Homi Bhabha in the 1950s to secure the country’s long term energy independence, through the use of uranium and thorium reserves found in the monazite sands of coastal regions of South India.

Objective: To utilize the known resources of thorium reserve found in India (India has 25% of world thorium reserves but only 1-2% global uranium reserve), to provide safe and reliable electric power for the country’s social and economic progress and to be self-reliant in all aspects of nuclear technology.

STAGE 1: PRESSURISED HEAVY WATER REACTOR

  •  In this natural uranium (0.7 % fissile U-235 and the rest is U-238) fuelled pressurised heavy water reactors (PHWR) which produce electricity while generating plutonium-239 as by-product.

STAGE II – FAST BREEDER REACTOR

  • In the second stage, fast breeder reactors (FBRs) would use a mixed oxide (MOX) fuel made from plutonium-239, recovered by reprocessing spent fuel from the first stage, and natural uranium.
  • In FBRs, plutonium-239 undergoes fission to produce energy, while the uranium-238 present in the mixed oxide fuel transmutes to additional plutonium-239.
  • Thus, the Stage II FBRs are designed to “breed” more fuel than they consume.

STAGE III – THORIUM BASED REACTORS

  • A Stage III reactor or an advanced nuclear power system involves a self-sustaining series of thorium-232- uranium-233 fuelled reactors.
  • This would be a thermal breeder reactor, which in principle can be refueled after its initial fuel charge using only naturally occurring thorium.
  • According to the three-stage programme, Indian nuclear energy could grow to about 10 GW through PHWRs fueled by domestic uranium, and the growth above that would have to come from FBRs till about 50GW.

About Atomic Energy Regulatory Board (AERB)

  •  Atomic Energy Regulatory Board is a statutory body created by the President under Atomic Energy Act, 1962 to carry out the regulatory and safety functions under the Act.
  •  It derives its regulatory powers from the rules and notifications promulgated under the Atomic Energy Act, 1962 and the Environmental (Protection) Act, 1986.
 BWRPWRPHWRFBR
PurposeElectricityElectricity,nuclear powered shipsElectricity,plutonium,productionElectricity,plutonium,production
CoolantWaterwaterHeavy water
(D2O)
Molten,liquid sodium
Moderator
WaterWaterHeavy Water (D2O)Not required
FuelUranium dioxide
Uranium dioxide
(UO2)
UO2 or metal
Plutonium
dioxide and
UO2 in
different combinations
Enrichment level
Low-enriched
Low-enriched
Not-enriched
Various mixtures of P-239 and U-235

BWR – boiling water reactor // PWR – pressurized water reactor.

9.3. COLD FUSION

Cold Fusion

  • Cold fusion describes a form of energy generated when hydrogen interacts with various metals like nickel and palladium. Excess heat is generated by the interaction that can be used to turn the turbine.
  • Cold fusion seeks to produce nuclear energy without harmful radiation, complex equipment and the application of very high temperatures and pressures.
  • The major challenge is to control the reaction.

 

9.4. GRAPHENE BASED BATTERY

Why in news

  • Recently, Scientists have developed a new graphene-based battery material with charging speed five times faster than lithium-ion batteries.

About Graphene

  • Graphene form of carbon consists of planar sheets (2D structure) which are one atom thick, with  the  atoms  arranged   in  a hexagonal  lattice   (honeycomb-shaped lattice).
  • Very good conductor of electricity and heat
  • About 200 times stronger than steel and nearly transparent.
  • Impermeable to gases
  • Applications: It can be used as/in Paints and coatings, lubricants, oils and functional fluids, capacitors and batteries, thermal management applications, display materials and packaging, solar cells, inks and 3D-printers’ materials and films etc.

Types of Batteries

Alkaline batteries

  • They are non-rechargeable, high energy density, batteries that have a long life span.
  • Electrolyte used in it is alkaline (non-acidic).
  • Generally, it has zinc as anode and a carbon rod/manganese dioxide as cathode with potassium hydroxide as the electrolyte. This is similar to dry cell where only electrolyte is different, i.e., ammonium chloride.
  • Non-alkaline batteries: They are similar to alkaline batteries except the electrolyte used is acidic in nature, generally a mixture of ammonium chloride and zinc chloride.
  • In lead acid battery, the reaction of lead and lead oxide with the sulfuric acid electrolyte produces a voltage

Fuel cell

  • A fuel cell uses the chemical energy of hydrogen or another fuel to cleanly and efficiently produce electricity. If hydrogen is the fuel, electricity, water, and heat are the only products.
  • Fuel cells work like batteries, but they do not run down or need recharging. They produce electricity and heat as long as fuel is supplied.
  • Fuel-cell vehicles use a completely different propulsion system from conventional vehicles that can be two or three times more efficient
  • Hydrogen as a pure gas is not easily available. Thus, making it very costly source of energy.

 

9.5. LITHIUM-ION BATTERY

Why in news?

  • Recently, ISRO has approved commercial use of lithium-ion battery technology.

Advantages of lithium-ion batteries over lead acid batteries

  • Weight: Lithium-ion batteries are one-third the weight of lead acid batteries.
  • Efficiency: Lithium-ion batteries are nearly 100% efficient in both charge and discharge while the lead batteries have the 70% efficiency.
  • Discharge: Lithium-ion batteries are discharged 100% versus less than 80% for lead acid.
  • Cycle Life: Rechargeable lithium-ion batteries cycle 5000 times or more compared to just 400-500 cycles in lead acid.
  • Voltage: Lithium-ion batteries maintain their voltage throughout the entire discharge cycle. Lead acid voltage drops consistently throughout the discharge cycle.
  • Cost: Despite the higher upfront cost of lithium-ion batteries, the true cost of ownership is far less than lead acid when considering life span and performance.
  • Environmental Impact: Lithium-ion batteries are a much cleaner technology and are safer for the environment.
  • Common usage of Li-ion battery: Pacemakers, digital cameras, Smartphones, Solar Power Storage, battery backup systems, Rocket launcher etc.

9.6. ARTIFICIAL LEAF

Why in news?

  • Scientists at CSIR have developed an artificial leaf that absorbs sunlight to generate hydrogen fuel from water.

CSIR

Council of Scientific and Industrial Research is India’s premier national R&D organisation established in 1942.

  • It operates as an autonomous body under Societies Registration Act 1860 and comes broadly under purview of Ministry of Science and Technology.
  • Prime Minister of India is the chairman of CSIR. Bionic Leaf uses solar energy to split water molecules into oxygen and hydrogen, and hydrogen-eating bacteria to produce liquid fuels from CO2.

Mechanism

  • Artificial leaf is an ultra-thin wireless device that consists of semi-conductors stacked in such a manner as to simulate the natural leaf system.
  • When visible light strikes the semi-conductors electrons move in single direction thus producing electric current which almost instantaneously splits water into hydrogen.
  • A palm size artificial leaf can produce six litres of hydrogen fuel per hour thus making it extremely environment friendly.

<H3>9.7 SUPERCRITICAL CO2-BRAYTON CYCLE</H3>

Why in news?

  • Indian scientists have developed a super critical carbon dioxide Brayton test loop facility that would help generate clean energy from future power plants.
  • Brayton cycle – A thermodynamic cycle using constant pressure, heat addition and rejection to spin the blades of a turbine, which can be used to generate electricity.

Key facts

  • This is India’s first test-bed for next generation, efficient, compact, waterless super critical carbon dioxide Brayton cycle test loop for power generation.
  • The term “supercritical” describes the state of carbon dioxide above its critical temperature of 31°C and critical pressure of 73 atmospheres making it twice as dense as steam.
  • Today’s thermal power plants use steam to carry heat away from the source and turn a turbine to generate power. However, it could generate more power if, instead of steam, supercritical CO2 (SCO2) is used.

OPTICAL TECHNOLOGY

11.1  ELECTRO MAGNETIC WAVES

  • Electromagnetic waves are used to transmit long, short, frequent wavelength radio waves and TV/ Telephone / wireless signals or energies. They are also responsible for transmitting energy in the form of microwave, Infra-red, visible light, UV, X rays , gamma rays
  • Radio waves ® Radio waves are emitted by stars in space
  • Microwave ® Microwaves are used in micro wave oven & Microwaves in space are used by astranauts to study the structure or nearly galaxies and Milky
  • Infra-red ® our skin emits IR. In space IR maps dust between stars
  • Visible light– fire flies and light bulbs emit visible light
  • UV – Sun and stars emit UV rays
  • x- ray ® Not gases in universe x rays
  • gamma ® Radioactive (natural and manmade)
  • Universe emits gamma rays

11.2      ELECTRO MAGNETIC SPECTRUM

  • Electromagnetic spectrum is the range of all possible frequencies of electromagnetic radiation. The Electron magnetic spectrum extends from low frequencies used for modern radio communication to gamma radiation there by covering wavelength from 100s of kilometre down to a fraction of the size of an atom

11.3        FIBRE OPTICS

  • It is a form of transmission system in which very thin glass and special plastic fibres are used to transmit light waves through out their length (by the methods of total internal reflection). Such light waves of higher band width can carry 2500 calls at a times
  • It is the science of transmitting data voice and images by the passage of light through thin transparent fibres or some other material of high refractive index
  • Fibre optics replaced copper wires in long distance telephone lines and used to link computer within LAN
  • Optical fibre is flexible, transparent Fibre made of glass (silica ) or plastic. Slightly thicker than human hair. It functions as a wave guide or light pipe to transmit light between the two ends of a fire

Advantages :

  • Unaffected by electromagnetic induction
  • Noise free
  • Freedom form cross talks
  • Safe from short circuit
  • Unaffected by high pressure and heat
  • Can over long distance

Applications:

  • Image transmission by optical fibres is widely used in medical instrument like endoscopes for viewing inside the human body and for laser surgery. Industrial endoscope are used for inspecting anything hard to reach such as jet engine interiors.
  • Optical fibres are also being used in variety of sensing  devices from thermometer to gyroscope Fibres have also been developed to carry high power laser beams for cutting and Drilling
  • Fibre optic laser system are used in communication networks for transcontinental and undersea cables are in operation and in LANs.

11.4      LASER

  • Laser – Light amplification by stimulated emission of radiation.
  • A laser is a device that emits light (electromagnetic radiation) through a process of optical  amplification based on the stimulated emission of photons. It produces a thin intense beam of light which is highly coherent.

Types :

  • Gas laser – Many gas discharges have found to amplify light coherently e. Co2. Red HeNe laser by used for industrial and scientific
  • Chemical laser – Chemical lasers are powered by a chemical reaction permitting a large am of energy to be released quickly (defence and industrial applns ) e.g        H2    flouride    laser    and deuterium flouride laser.
  • Exismer laser : Excimer lasers are a special sort of gas laser powered by an electrical discharge in which the lasing medium in excimer.

Solid state lasers :

  • Use a crystalline or glass rod which is doped with ions that provide the required energy states. Eg. Ruby laser ® used in tattoo and hair removal

Fibre laser :

  • Solid state laser or laser amplifier where the light is guided due to the total internal reflection in a single mode optical fibre are called fiber lasers.
  • Fibre lasers have their own application in telecommunication, medicine, spectroscopy – study of the interaction between matter and radiated energy

Semi conductor laser :

  • Semi conductor lasers are diodes which are e-cally pumped. The development of a silicon laser is important in the field of optical computing. Silicon is the material of choice for ICs and so electronic and silicon photonic components could be fabricated on the same chip.

Bio Laser :

  • Living cells can be genetically engineered to produce GFP (Green flourscent protein) GFP gain medium for amplifying light.  Two  mirrors  were  placed 20  millionths  of  a  meter  across and  when  blue  light  is  passed  it emits green light.
  • Applications: Improved microscopic imaging and light based therapies.

Applications:

  • Laser is useful in recording, storing and transmitting information and they can also be used in scanning heating measuring and guiding. As a result of their wide use lasers can be found in equipment used in homes,  factories,    offices, hospital and libraries.

Some of the major applications are listed below

  • The most common use of laser include the recording of music, motion picture complete data in CD/ DVD
  • Laser can also read and play back the information recorded on discs
  • Laser beams can produce 3D images in a photographic process called Holography method for storing and displacing a 3 D image usually on a photographic plate or another light sensitive material.
  • Laser is used in the field to fibre optical communication that changes eliectrical signals of telephone calls and TV pictures into pulses of laser light
  • Laser scanner are used in supermarkets to scan the bar codes of consumer goods and also in libraries to keep track of books and in post offices to sort mails and to read a/c no an cheques in banks
  • Laser light shown are conducted with scanning laser beams
  • Industrial laser are used to cut and weld metals. Drill holes and cut ceramics, cloth and plastics as laser beams produce great amt of heat
  • In the field of medicine, heating power of laser is often used in eye surgery to close off broken blood vessels on the retina and to detach a loose retina. Laser beams can replace surgical  knife in some operation which permits extra ordinary control and precision in cutting tissue and sealing off cuts. It reduces bleeding damage to nearby healthy tissue.
  • In nuclear energy research scientist use laser to produce controlled miniature

H2 bombexplosion

  • Lasers are also used to measure distance.Laser devices used to measure shorter distance are called range   finders surveyors(Use the devices to get information needed to make maps) Military personal use them to calculate the distance to an enemy
  • Instruments called laser gyroscope use laser beam to detect changes in direction. These devices help ships, airplanes and guided missiles to stay on Course

11.5       MASER

  • A maser is a device that produces coherent electromagnetic waves through  amplification   by stimulated emission MASER – Microwave amplification by stimulated emission of radiation

Types :

  • Atomic beam maser e.g: Ammonia maser, free electron maser, H2
  • gas maser e.g: Rublidium maser
  • Solid state maser e.g. : Ruby

Applications :

  • Maser serve as high precision frequent references. These atomic frequency standards are one of the many forms of atomic clocks.
  • They are used as low noise microware amplifier in radio telescope.
  • They are used as directed energy weapon( emits energy in an armed direction without any projectile.It transfers energy to a target for a desired )

11.6      OPTICAL COMPUTING

  • Computers use movement of electrons in and out of transistors to do logic. Optical or photonic computing is intended to use photons or light particles produced by laser or diodes in the place of electron. Compared to electrons, photons are much faster.   Light travels about 30 m or  1  foot  in  a  nano  second  and have higher bandwidth .
  • Single high tech components are available but no optical
  • Today’s optical computers are only prototypes do not reflect the whole capabilities of optical computing.

Advantage: (theoretical advantage)

Higher performance:

  • The most significant advantage of optical computers is the potential of higher
  • Light and photons are perfect information carriers. Even long distance can be bridged within split second. Fully optical RAM, bus systems using laser to communicate, optical processers and holographic devices would be much faster than electronic ones.

Higher parallelism :

  • Optical computers can be built with higher bandwidth. Within one datapath several data sets can be transmitted parallelly at the same time using different wavelength. Data paths can cross each other without interference and the layout can be 3 dimensional. This allows for higher        paraIIelism                        (but architecture and operating system should be adjusted)

Less power consumption:

  • OCs have the potential to be more power saving as friction between integrated chips do not occur when light is used as information carrier.

Less heat is released:

  • In Optical cables laser can be used as light sources. Those concentrated light beams only consist of a small spectrum of different wave

Less noise:

  • Optical cables could be absolutely noiseless as no fan will be needed. Laser can be cooled with passive coolers and heat pipes built out of aluminium and copper.

Less loss in communication:

  • Data sent through wires need to be amplified several times to bridge longer distance the communication with optical fibres is almost lossless due to TIR

Less wear tear

  • Wear and learn normally occurs at mechanically moving parts. In conventional computers, fan, hard disk drives, removal storage disk, rotate and move very fast which causes fruition and wears out.

Move flexibility in layout

  • For the speed of electronic connection which depends on the length of the cables and pipelines. Conventional PCs are built as rectangular box or laptop on the mother board, CPU, RAM, Graphics card have to be closer to each other to be able to move large amts of data. But for optical components, distance of communication doesn’t matter. So the technology has the potential to change the shape and layout of computer

SPACE TECHNOLOGY

1. ISRO

  • The Indian Space Research Organization (ISRO) is the pioneer space exploration agency of the Government of India based at Bengaluru.
  •  It aims to develop and harness space technology in national development, while pursuing planetary exploration and space science research.
  •  Indian Space Research Organisation (ISRO) operates through a countrywide network of centre such as Vikram Sarabhai Space Centre in Thiruvananthapuram, ISRO Satellite Centre in Bangalore, Satish Dhawan Space Centre on Sriharikota Island, near Chennai, Sensors and payloads Space Applications Centre in Ahmedabad, National Remote Sensing Centre in Hyderabad etc.
  • ISRO’s commercial arm is Antrix Corporation, which has its headquarters in Bangalore.

3.1.1. MISSIONS

MARS ORBITER MISSION

  • Mars Orbiter Mission (MOM), has completed four years in space since its launch on November 5, 2013
  • It was India’s first interplanetary mission, launched by using a Polar Satellite Launch Vehicle (PSLV) rocket.
  • First Asian Nation: India had created global history by becoming the first Asian nation to reach the Mars orbit in a space mission.
  •  Proved the capability and efficiency of ISRO: ISRO has become the fourth space agency to reach Mars, after the Soviet space program, NASA, and the European Space Agency
  • MOM was aimed to explore and observe Mars surface features, morphology, mineralogy and the Martian atmosphere
  • It carried 5 instruments for Atmospheric studies (Lyman-Alpha Photometer (LAP), Methane Sensor for Mars (MSM)), Particle environment studies (Mars Exospheric Neutral Composition Analyser (MENCA)), Surface imaging studies (Thermal Infrared Imaging Spectrometer (TIS), Mars Colour Camera (MCC).
  • ISRO was presented with the Indira Gandhi Prize for Peace, Disarmament and Development for the year 2014 for the successful Mars Orbiter Mission and for strengthening international co-operation

CHANDRAYAAN-1

Why in news?

  • Recently, scientists from Brown University, USA have created the first map of water trapped in the uppermost layer of Moon’s soil using the data captured by instrument on Chandrayan-1.

More on news

  • Scientists have stated that the water thus detected by the Chandrayan-1 lunar mission mostly concentrated around the polar region is present everywhere and not just polar region.
  • It was also found that the concentration of water changes over the course of Lunar Day at latitudes lower than 60 degrees i.e. wetter in morning and evening and dry during lunar noon with fluctuations up-to 200ppm.

Findings of Chandrayan-1

  •  Detection of Water – Major finding was the detection of Water (H2O) and Hydroxyl (OH) on the surface of the moon. The data revealed its presence in abundance around the polar region.
  •  Magma Ocean Hypothesis – It confirmed the Ocean Magma Hypothesis i.e. the moon was once completely in molten state using HySi and TMC.
  •  Evidences of landing site of Apollo 15 and 17 – TMC found the anomalies in Lunar surface about the landing of USA’s Apollo-15 and 17.
  •  New Spinel-rich Rock – Data from TMC, HySI, M3 and SIR2 have led to detection of new spinel-rich rock type on lunar far-side.
  •  X-Ray signals detected– C1XS have detected x-ray signals during weak solar flares thus indicating presence of magnesium, aluminium, silicon and calcium on lunar surface.
  • ISRO is planning to launch a fully indigenous Chandrayan-2 in October this year. This would include an orbiter, lander and a rover.

About Chandrayan-1

  •  Chandrayan-1 was launched by India in October, 2009 using PSLV-C11.
  • The primary objective of the mission was to prepare a three-dimensional atlas of both near and far side of the moon and chemical, mineralogical and photo-geological mapping of moon.
  •  It had made almost 3400 orbits around the moon before it lost contact with Earth in 2009.
  •  Chandrayaan-1 had payloads from India namely:
  •  Terrain Mapping Camera (TMC) o Hyper Spectral Imager (HySI)
  •  Lunar Laser Ranging Instrument (LLRI) o High Energy X-Ray Spectrometer (HEX)
  • Moon Impact Probe (MIP).

Lunar Day

  •  Lunar Day refers to time taken by the Earth’s moon to complete one rotation on its axis and it is also the time taken by the moon to complete one orbit around the Earth.
  • One Lunar Day equals to 27 Earth Days, 7 hours, 43 minutes and 12 seconds.
  • It is usually the phase between two new moons.

NAVIC

Why in news?

  • Recently, IRNSS received setback due to failure of the atomic clocks on board IRNSS-1A and unsuccessful launch of navigational satellite

IRNSS 1H.

  • An atomic clock is a clock device that uses an electronic transition frequency of the electromagnetic spectrum of atoms as a frequency standard for its timekeeping element.
  • Atomic clocks are the most accurate time and frequency standards known and are used as primary standards for international time distribution services, to control the wave frequency of television broadcasts, and in global navigation satellite systems such as GPS.
  • A rubidium atomic clock is a frequency standard in which a specified hyperfine transition of electrons in rubidium-87 atoms is used to control the output frequency. It is the most inexpensive, compact, and widely used type of atomic clock.

More on news

  • IRNSS-1A is the first of the seven satellites comprising the Navigation with Indian Constellation (NavIC) – (IRNSS-1G; IRNSS-1F; IRNSS-1E, IRNSS-1D, IRNSS-1C, IRNSS-1B; and IRNSS-1A)
  •  It has been designed to support vehicle
  • tracking, fleet management, disaster management and mapping services besides terrestrial, marine and aerial navigation for India and its neighbourhood.
  •  It was carried on by PSLV (Polar Satellite Launch Vehicle)-C39 to augment the existing seven satellites of the NavIC constellation.

NAVIC or IRNSS (Indian Regional Navigation Satellite System)

  • It is an independent indigenous regional system developed by India on par with the US-based Global Positioning System (GPS), Glonass of Russia, Galileo by Europe, BeiDou by China and Quasi-Zenith Satellite System (QZSS) by Japan.
  • IRNSS will provide basically two types of services:
  •  Standard Positioning Service (SPS) for civilian users
  • Restricted Service (RS), is an encrypted service provided only to specific users
  •  It offers services like terrestrial and marine navigation, disaster management, vehicle tracking and fleet management, navigation aide for hikers and travellers, visual and voice navigation for drivers and marine & aerial navigation for India and its neighbourhood.

ASTROSAT

Why in news?

  • Astrosat is indulged in observing major events such as merging of two Black holes, gamma ray burst etc.

 

Background

  • US-based LIGO group had detected gravitational waves emanating from the merger of two massive black holes located nearly 3 billion light years away. It was also confirmed by Hawaii-based ATLAS group.
  • However, AstroSat team in collaboration with the GROWTH network of observatories, has concluded that this event is due to a gamma ray burst, which was confirmed by POLAR project.
  • A gamma ray burst is light emanating from a bursting star, that may lead to the formation of a black hole.

GROWTH (Global Relay of Observatories Watching Transients Happen)

  • GROWTH is an international scientific collaborative project in astronomy studying the physics of fast-changing events in the cosmos like supernovae, neutron stars or black hole mergers, and near-earth asteroids. It is partnership of eleven universities and research institutions from US, India, Sweden, Taiwan, Japan, Israel and Germany.
  • It continuously gathers data of cosmic transient events in the first 24 hours after detection to build a more complete picture and better understand the physical processes of their evolution.
  • It jointly operates 17 observatories in the northern hemisphere. Girawali Observatory – IUCAA in Maharashtra (near Pune) is part of this network.

POLAR project

  • POLAR is an international mission of China and European collaboration is dedicated to establishing whether the photons from Gama-ray bursts (GRBs) — thought to be a particularly energetic type of stellar explosion — are polarized.

About ASTROSAT

  • It is India’s first dedicated multi wavelength space observatory.
  • It observes universe in the optical, Ultraviolet, low and high energy X-ray regions of the electromagnetic spectrum, whereas most other scientific satellites are capable of observing a narrow range of wavelength band.
  • It’s dubbed as a smaller version of NASA’s Hubble Space Telescope
  • Various paylods carried by it are: Large Area X-ray Proportional Counter, Ultraviolet Imaging Telescope, Soft X-Ray Telescope,Scanning Sky Monitor, Cadmium Zinc telluride Imager.

Major objectives of ASTROSAT

  • Understand high energy processes in binary star systems containing neutron stars and black holes.
  • Estimate magnetic fields of neutron stars.
  • Study star birth regions and high energy processes in star systems lying beyond our galaxy.
  • Detect new briefly bright X-ray sources in the sky.

CREW MODULE ATMOSPHERIC REENTRY EXPERIMENT (CARE)

  • It’s a module developed by ISRO to carry human beings to space.
  • ISRO tested it’s ability to re-enter the Earth’s atmosphere with thermal resistance, parachute deployment in cluster formation, aero braking system and apex cover separation procedures.

ADITYA L1

Why in news?

  • India is set to launch its first solar mission Aditya-L1 in 2019.

About Aditya L1

  • The Aditya L1 will be placed in a halo orbit around a vantage point in space known as L1 Lagrange point.
  • The point L1 has the major advantage of viewing the sun without any occultation/ eclipses.
  • The mission will carry seven payloads including the main payload the Visible

Emission Line Coronagraph (VLEC).

  • Aditya L1 is to be the first satellite to study the magnetic field of the sun’s corona.
  • The Aditya L1 is expected to help study that why the photosphere, the deeper layer of the sun is at much lower temperature than the corona.
  • It will also study aspects that affect space weather, the origin of solar wind ions, their reaction to coronal mass ejections, the distribution of these in the heliosphere- the space around the sun that extends up to Pluto.

 

  • Halo Orbit: It is periodic, three-dimensional orbit near the L1, L2 and L3 lagrange point (unstable) in a three body system.
  • Lagrange Point: It is the point where the combined gravitational force of two large bodies is equal to the centrifugal force that is felt by a third body which is relatively smaller.
  • There are about 5 such points in a two body system.
  • Corona: The outer layers of the Sun, extending to thousands of km above the disc (photosphere) is termed as the corona. It has a temperature of more than a million degree Kelvin which is much higher than the solar disc temperature of around 6000K.

3.1.2. LAUNCHERS

PSLV C40

Why in news?

  • ISRO’s through PSLV C40 has successfully placed 31 satellites (second highest number launched by ISRO using a single rocket) including main payload Cartosat-2s series and 28 foreign satellites in two different orbits.
  • It also includes the Indian nano satellite, NIUSAT which belongs to Tamil Nadu’s Nooral Islam University. This will provide multi-spectral imagery for agricultural crop monitoring and disaster management support applications. Nanosatellites or nanosats weigh between 1 kg and 10 kg.

Significance of the launch

  • The launch marks the roll out of the 100th satellite by ISRO.
  • It is also significant in the sense that India failed in its last attempt to launch its backup navigation satellite IRNSS-1H on board PSLV-C39 failed.
  • It is the second time that ISRO will be achieving the two orbits feat. This was done through the “multiple burn technology” under which the rocket’s engine is switched off and then switched on to control its height.
  • It reinstates India’s position as a successful multiple satellite launcher.
  • Government recently also announced funding to develop an exclusive Small Satellite Launch Vehicle (SSLV) to cater mini and micro satellites exclusively.

GSLV MK III

Why in News?

  • Recently, GSLV MK III D1 rocket (GSAT 19) was launched successfully.

Background

  • The first experimental flight of LVM3-X/CARE mission successfully tested the atmospheric phase of flight. Crew module Atmospheric Reentry Experiment was also carried out in this flight. This was the first testing of the indigenous cryogenic engine.

 

Cryogenic: Cryogenic propellants are liquefied gases stored at very low temperatures, most frequently liquid hydrogen as the fuel and liquid oxygen as the oxidizer.

  • The liquid fuel and oxidizer are pumped from the storage tanks to an expansion chamber and injected into the combustion chamber where they are mixed and ignited by a flame or spark.
  • The fuel expands as it burns and the hot exhaust gases are directed out of the nozzle to provide thrust.

Features

  • It is the heaviest rocket to be launched from India till now.
  • Apart from the upper cryogenic stage, the vehicle has two solid strap-on motors (S200) and a core liquid booster (L110).
  • For the first time there will be no transponders on the satellite. It will be using a new way beaming data down using multiple frequency beams. It is therefore called “a high through put satellite“.
  • For the first time, it would have indigenously made Lithium ion batteries.
  • This spacecraft would have advanced technologies including miniaturized heat pipe, fibre optic gyro, Micro Electro-Mechanical Systems (MEMS) accelerometer.

Satellite-Launch Vehicles Developed By ISRO.

PSLV (Polar Satellite Launch Vehicle): It is designed mainly to deliver the “earth-observation” or “remote-sensing” satellites with lift-off mass of up to about 1750 Kg to Sun-Synchronous circular polar orbits of 600-900 Km altitude.

  • PSLV is a four-staged launch vehicle with first and third stage using solid rocket motors and second and fourth stages using liquid rocket engines.
  • PSLV is classified into its various versions like core-alone version (PSLV-CA), PSLV-G or PSLV-XL variants depending on the number of these strap-on boosters
  • PSLV is also used to launch the satellites of lower lift-off mass of up to about 1400 Kg to the elliptical Geosynchronous Transfer Orbit (GTO).

 

GSLV (Geosynchronous Satellite Launch Vehicle): GSLV is designed mainly to deliver the communication-satellites to the highly elliptical (typically 250 x 36000 Km) Geosynchronous Transfer Orbit (GTO).

  • Two versions of the GSLV:
  1. GSLV Mk-II: is a three stage vehicle with four liquid strap-ons. First stage using solid rocket motor, second stage using Liquid fuel and Cryogenic Upper Stage (CUS) forms the third stage of GSLV Mk II. has the capability tolaunch satellites of lift-off mass of up to 2,500 kg to the GTO and satellites of up to 5,000 kg lift-off mass to the LEO (low earth orbit).

    2  GSLV-III: It is a three stage vehicle with an indigenous cryogenic upper stage engine (C25). It has been designed to carry heavier communication satellites weighing upto up to 4000 kg into the Geosynchronous Transfer Orbit.

REUSABLE LAUNCH VEHICLE– TECHNOLOGY DEMONSTRATOR (RLV-TD)

  • It is one of the most technologically challenging endeavors of ISRO, that is, developing essential technologies for a fully reusable launch vehicle
  • If developed, it would enable low cost access to space. The configuration of RLV-TD is similar to that of an aircraft and combines the complexity of both launch vehicles and aircraft.

3.1.3. SATELLITE

There are various types of satellite in India

  • Communication satellite – The Indian National Satellite (INSAT) system is one of the largest domestic communication satellite systems placed in Geo-stationary orbit. GSAT-17 joins the constellation of INSAT System. The INSAT system provides services to telecommunications, television broadcasting, satellite newsgathering, societal applications, weather forecasting, disaster warning and Search and Rescue operations.

GSAT

  • A GSAT is a series of geosynchronous satellite placed in geosynchronous orbit, with an orbital period the same as the Earth’s rotation period.
  • Such a satellite returns to the same position in the sky after each day.
  • A special case of geosynchronous satellite is the geostationary satellite, which has a geostationary orbit – a circular orbit directly above the Earth’s equator.

Geosynchronous satellites have the advantage of remaining permanently in the same area of the sky, as viewed from a particular location on Earth

  • Experimental satellite – ISRO has launched many small satellites mainly for the experimental purposes such as Remote Sensing, Atmospheric Studies, PayloadGeostationary satellites have the special property of remaining permanently fixed in exactly the same position in the sky, meaning that ground-based antennas do not need to track them but can remain fixed in
  • one direction. Such satellites are often used for communication purposes. This orbit is present at an altitude of approx. 35,786 km in the equatorial plane.
  • Sun Synchronous Orbits (or Low Earth Orbit): These orbits allows a satellite to pass over a section of the Earth at the same time of day. These satellites orbit at an altitude between 700 to 800 km.
  • Geostationary Transfer Orbit (GTO) is an elliptical orbit, with an apogee (high point) of 35,784 kilometers and an inclination roughly equal to the latitude of the launch site, into which a spacecraft is initially placed before being transferred to a geosynchronous or geostationary orbit.

GSAT-7 or Rukmini

  • Rukmini was the first military communication satellite launched by the ISRO in 2013, for the Indian Defence forces, with the Indian Navy being the primary user.
  • It’s a multi-band military communication satellite, placed into a geosynchronous orbit, to secure real-time communication.

 

  • Earth Observations satellite – ISRO has launched many operational remote sensing satellites such as CARTOSAT 2, RESOURCSAT 1, OCEANSAT 2 etc. in sun-synchronous orbit and INSAT-3D, Kalpana etc. in geo-synchronous orbit. The data from these satellites are used for several applications covering agriculture, water resources, urban planning, rural development, mineral prospecting, environment, forestry, ocean resources and disaster management.
  • Navigation satellite – To meet the user requirements of the positioning, navigation and timing services. Example – IRNSS, GPS Aided GEO Augmented Navigation (GAGAN) to meet civil aviation requirements.
  • Space Science satellite – research in areas like astronomy, astrophysics, planetary and earth sciences, atmospheric sciences and theoretical physics. For example – Astrosat, Chandrayaan-1 2, MOM  Development, Orbit Controls, recovery technology etc. For example  AryaBhata, APPLE etc. imaging and science missions within a quick turn around time.
  • Student satellite – ISRO has influenced educational institutions by its activities like making satellites for communication, remote sensing and astronomy etc.

 

3.1.3.1. HYPERSPECTRAL IMAGING SATELLITE

Why in news?

  • ISRO plans to launch HySIS (Hyperspectral Imaging Satellite) – an earth observation satellite, using a critical chip it has developed called “optical imaging detector array”.

What is hyperspectral imaging?

  • Hyperspectral imaging, or imaging spectroscopy, combines the power of digital imaging and spectroscopy. Hyperspex imaging is enabled by an optical imaging detector chip
  • For each pixel in an image, a hyperspectral camera acquires the light intensity (radiance) for a large number of contiguous spectral bands.
  • Every pixel in the image thus contains a continuous spectrum in the visible and near infra-red regions and can be used to characterize the objects in the scene with great precision and detail.
  • Significance: Hyperspectral images provide much more detailed information about the scene than a normal color camera, which only acquires three different spectral channels corresponding to the visual primary colors red, green and blue.
  • Hyperspectral imaging leads to a vastly improved ability to classify the objects in the scene based on their spectral properties.

3.1.4. SPACE ACTIVITIES BILL, 2017

Why in news?

  • The government of India has come up with Space Activities Bill 2017, a draft law meant to regulate the space sector.

Background

  • Department of Space(DoS) is the nodal agency for space activities in India which include:
  • Space Infrastructure: spacecraft for various applications and associated ground infrastructure
  • Space Transportation systems: various class of launch vehicles and associated ground infrastructure Space applications: for various national requirements through establishment of necessary ground infrastructure and coordination mechanisms.
  • Space activities in India till now have been governed by Satellite Communication Policy, 2000 (which enacted a framework to provide licenses to private sector players to operate communication satellites over India) and the Remote Sensing Data Policy, 2011.
  • Internationally, the outer space activities are governed by relevant chapters of international law in general and by United Nations’ (UN) Treaties and principles evolved under UN Committee on Peaceful Uses of Outer Space (UNCOPUOS) in particular.

About Space Activities Bill 2017

  • It is needed to encourage the participation of private sector agencies in space activities in India. This will supplement the manpower requirement of ISRO.
  • The draft law includes provisions such as providing non-transferable licence to carry out commercial space activity, supporting such activities professionally ad technically, regulating their operations, penal provisions for undertaking such activities without authorization etc.

UN Office for Outer Space Affairs (UNOOSA), 1958.

  • It promotes international cooperation in peaceful uses of Outer Space.
  • It serves as the secretariat for UNGA’s UN committee on Peaceful Uses of Outer Space(COPUOS).
  • It also establishes UN register for Objects launched into Outer space.
  • It manages the UN Platform for Space based Information for Disaster Management and Emergency Response (UN -SPIDER).

Outer Space Treaty, 1967.

  • Aim: To preserve space for peaceful uses by prohibiting the use of space weapons, the development of space-weapon technology, and technology related to “missile defense.”
  • It would prevent any nation from gaining a military advantage in outer space.

3.1.5. VILLAGE RESOURCE CENTRES

Why in news?

  • ISRO has established around 473 Village Resource Centres (VRCs) on a pilot basis, in association with selected NGOs, Trusts and State Government Departments.

What is Village Resource Centres (VRC)?

  • This is one of the unique initiatives that use Satellite Communication (SATCOM) network and Earth Observation (EO) satellite data to reach out to the villages to address the needs of the local people in villages itself.

Applications: VRCs provide wide varieties of services in rural areas:

  • Tele-medicine concept connects the sick people in villages, through VSAT network, to the doctors, who located in cities/urban areas or the Super-speciality hospitals, for providing health services.
  • The Tele-education uses SATCOM to provide a virtual classroom facility to far-flung villages or remote areas in the country and helps in imparting education to the needy, career guidance to rural students etc.
  • Advisories related to agriculture like crop pest and diseases, fertilizer/pesticides, organic farming, crop insurance etc.
  • Skill development and vocational training to the rural population.
  • Other areas of application include Panchayat planning, Weather information, Marketing information, Watershed Development, Drinking water etc.

3.1.6. SARASWATI: A SUPERCLUSTER OF GALAXIES

Why in News?

  • A team of Indian scientists has reported the discovery of a previously unknown ‘supercluster’ of galaxies, some four billion light years away from Earth, and named it Saraswati.

What are Superclusters?

  • Galaxies are like the building blocks of the universe, they contain a huge number of stars. Galaxy clusters have 3-100 galaxies, and super clusters are the clusters of clusters.
  • Within superclusters, clusters are connected by filaments and sheets of dark matter with galaxies embedded in them
  • Sarawati has 42 clusters and it is 4000 million light years from earth.

 

3.1.7. NASA-ISRO   SYNTHETIC APERTURE RADAR (NISAR)

What is NISAR mission?

 

  • It is the world’s most expensive earth imaging satellite till date ($1.5 billion), being jointly developed by India and USA and expected to be launched around
  • NISAR is a dual frequency L-band and S-band radar mission, that will map Earth every 12 days from two directions.
  • NASA and Jet Propulsion Laboratory will be responsible for the design & development of L-band SAR, while ISRO will be responsible for the design & development of S-band SAR
  • It will make global integrated measurements of the causes and consequences of land surface changes.
  • NISAR will provide a means of resolving highly spatial and temporally complex processes ranging from ecosystem disturbances, to ice sheet collapse and natural hazards including earthquakes, tsunamis, volcanoes, and landslides.
  • Post completion, NISAR will be integrated with ISRO’s spacecraft and launched on board India’s GSLV.

NASA AND ISRO:

  • The two space research organisations signed a framework agreement in 2008 that called for cooperation in the exploration and use of outer space for peaceful purposes.
  • Under the agreement, both ISRO and NASA have executed an implementing arrangement for cooperation in NISAR mission, which is valid until
  • The arrangement provides scope for joint activities on science & applications of NISAR data after the launch.

Earlier collaborations between NASA and ISRO:

  • Chandrayaan-I mission, 2005: Moon Mineralogy mapper from NASA accompanied the mission, resulting in “joint-discovery” of water on moon.
  • Mars Orbiter Mission (Mangalyaan), 2014: where NASA’s navigational expertise in deep space trajectory and maneuverability aided the mission.
NASA MISSIONSMATTER OF STUDY
Parker Solar Probe
  • Solar corona, solar wind and solar energetic particles

GOLD & ICON
  • Refer to Global-scale
Mission
  • Observations of the Limb and Disk(GOLD) and Ionospheric Connection Explorer(ICON)respectively Ionosphere region to understand more about
    hurricanes & geomagnetic storms

New Frontiers program
  • Explore the solar system. Two
    recently selected missions:
    Comet Astrobiology Exploration Sample Return ) for visiting comet
    67P/Churyumov-Gerasimenko
    Dragonfly: spacecraft to study
    Titan, Saturn’s largest moon


  • Three older missions:
    Juno Mission: Juno spacecraft to orbit Jupiter.Earlier,Galileo probe in its mission had found evidence subsurface saltwater Jupiter’s moons Europa,Ganymede and Callisto OSIRIS-Rex: Origins,Spectral Interpretation,Resource Identification,Security-Regolith Explorer is NASA’s first unmanned asteroid sampling mission heading towards a near-Earth asteroid called Bennu.
    New Horizons Spacecraft: To study Pluto, its moons (such
    as Nix and Hydra) and the Kuiper belt

SOFIA Mission(Flying Observatory)

  • Stratospheric Observatory for Infrared Astronomy (SOFIA) is world’s largest airborne astronomical observatory built as a joint project of NASA
    and the German Aerospace Centre to observe celestial
    magnetic fields, star forming regions, comets and Saturn’s giant moon Titan
Cassini Mission
  • launched through collaboration between NASA,
    ESA and the Italian space agency to study Saturn and its
    system of rings and moons (Saturn’s largest moon is Titan)

  • first spacecraft to orbit Saturn

Exploration Mission-1
  • It will be the first integrated test of NASA’s deep space exploration systems: the Orion spacecraft and Space Launch System (SLS)rocket
    (most powerful rocket in the world)


  • Orion Spacecraft is designed to take astronauts beyond low-Earth orbit and explore the Moon, Mars and other destinations

Voyager 1 and 2

  • •Year 2017 marked 40th anniversary of its journey

  • •They have explored all the giant planets of our outer solar system,Jupiter,Saturn,Uranus and Neptune; 48 of their moons; and the unique system of rings and magnetic fields

  • •Voyager 1 was the first spacecraft to have entered interstellar space

Kepler Mission

  • •Kepler is a space observatory launched by NASA to discover Earth-size planets orbiting other stars.

  • • The Kepler telescope detects the presence of planets by registering minuscule drops in a star’s brightness that occurs when a planet crosses in front of it, a movement known as a transit.
DAWN Mission

  • only mission ever to orbit two extraterrestrial targets - giant
    asteroid Vesta and the dwarf planet Ceres


  • Ceres is the largest body in the asteroid belt between Mars and Jupiter. It is a dwarf planet, the only one located in the inner circle of the solar
    system, rest all are located on the outer edges.
AIDA (Asteroid
Impact and
Deflection
Assessment)
Mission

  • It is the first-ever mission that will deflect a near-Earth
    asteroid to protect the planet It is an international collaboration among the European Space Agency (ESA),NASA and others AIDA involves two independent spacecraft–NASA’s Double Asteroid Redirection Test (DART),andESA’s Asteroid Impact Mission(AIM).

  • • Its target is the binary near-Earth asteroid Didymos,a binary system, classified as a potentially hazardous asteroid.

  • • NASA has also designed a spacecraft named Hammer(Hypervelocity Asteroid Mitigation Mission for Emergency Response), which could deflect a asteroids, if it happens to hit Earth.

SPARCS

  • Star-Planet Activity Research CubeSat (SPARCS) is a space telescope to
    habitability and high-energy environment around M-dwarf stars.
TESS

  • Transiting Exoplanet Survey Satellite (TESS)to study exoplanets in orbit around the brightest stars in the sky. TESS will monitor more than 200,000 stars for temporary drops in brightness caused by planetary transits.
InSight Mars
lander
  • for Mars (Red Planet)which will study the interior of Mars and listen for Marsquakes

ICESat-2 and
GRACE Follow-
On
  • to continue the long-term record of how Earth’s ice sheets,sea level, and underground water reserves are changing
Roll-out Solar
Array (ROSA)

  • It is a collaboration between NASA and two private companies with an aim to
    develop flexible solar array(adaptable to different sizes)
    that could one day power satellites and spacecraft.

  • It is 20% lighter and four times smaller in volume than traditional solar panels.

Imaging X-ray
Polarimetry
Explorer
mission

  • The proposal for this mission was accepted under NASA’s
    Explorers Programme which provides frequent,low-cost access to space for investigations.This mission is aimed at studying some of the most extreme and exotic astronomical objects by studying the polarisation of X-rays emitted from their surrounding environments as direct image cannot be taken of
    such as objects like black holes,neutron stars etc.

New Aviation
Horizons
initiative

  • It aims to commercialise ultra-efficient subsonic transportation

  • Recently, NASA has completed preliminary design review of
    the Quiet Supersonic Transport(QueSST) aircraft,initial design
    stage of planned Low Boom Flight Demonstration(LBFD)
    experimental airplane,otherwise known as an X-plane
Joint Polar
Satellite
System-1
(JPSS)
spacecraft

  • It is a partnership between NOAA(National Oceanic and Atmospheric Administration)and NASA It’s first in NOAA’s series of four, next-generation operational environmental satellites designed to circle the
    Earth in a polar orbit.
Backyard Worlds project

  • It is a citizen science project which lets anyone with a computer and an Internet connection flip through images taken by NASA’s Wide Field
    Infrared Survey Explorer (WISE)spacecraft.WISE is a space telescope
    launched in 2009 by NASA to map the entire sky in infrared wavelengths. Its goal was to find objects that had not been imaged before,including very
    bright galaxies, very cold stars,and nearby asteroids and comets.
Hubble Space Telescpe
  • It is a joint venture between NASA and the European Space Agency (ESA) — was launched in its orbit 552 km above Earth


  • It has the ability to see in multiple wavelengths — near-
    infrared, visible light and near-ultraviolet


  • It has recently discovered seven Earth-sized planets orbiting the
    ultracool dwarf star TRAPPIST-1 making it the planetary
    system with the largest number of Earth-sized planets discovered so far.

James Webb Space
  • It is a joint project of the NASA, the European Space Agency
Telescope
  • and the Canadian Space Agency.


  • It will be the successor of Hubble Space Telescope and 100 times powerful than it.

  • One of its main goals is to use spectroscopy to determine the
    atmospheric components of alien worlds.

Kilopower
project
  • It's a small nuclear reactor that can generate a reliable power
    supply which can be used to provide safe and plentiful
    energy for future robotic and human missions for Mars and beyond

3.3. OTHER SPACE RELATED DEVELOPMENTS

3.3.1. BLUE MOON

Why in news?

  • On January 31, 2018, a rare Blue Moon event was experienced on large parts of the globe.

About the news

  • It was a rare moment as blue moon, a supermoon and a total lunar eclipse fell on same day after more than 150 years.
  • Blue Moon: When two full moons appear in the same calendar month, the second is termed a “blue moon”. First full moon occurred on Jan 1, 2018.
  • Super Moon: occurs when the full moon is at the closest point of its orbit to the Earth, which is also called the perigee. The moon appears 30% brighter and 14% bigger than the apogee full moon
  • Blood Moon: The moon turns into red color during the height of the eclipse as some light does reach it even though the moon is in the shadow of the Earth. Fine particles in the atmosphere scatter (Rayleigh scattering) the blue component of solar spectrum, & what reaches us is the longer wavelength red light.
  • A lunar eclipse happens whenever the moon passes through Earth’s shadow, also known as its umbra.

Solar eclipse

  • A solar eclipse occurs when the moon gets between Earth and the sun, and the moon casts a shadow over Earth.
  • It can only take place at the phase of new moon, when the moon passes directly between the sun and Earth and its shadows fall upon Earth’s surface.
  • However, eclipses do not happen at every new moon because the moon’s orbit is tilted just over 5 degrees relative to Earth’s orbit around the sun. Thus, the moon’s shadow usually passes either above or below Earth.

Why in news?

  • Perseid Meteor Shower fell on Earth in August peaked on August 12.

3.3.2. METEOR SHOWER

  • Geminid meteor shower fell on Earth on December 12.

Asteroids, Meteoroid, Meteors and Meteorites

  • Asteroids – Asteroids are small bodies of rocks which revolve around the sun. The Asteroid belt in our Solar System is found between the Mars and Jupiter.
  • Meteoroids – When asteroids smash into each other, small fragments break off. These fragments are called Meteoroids.
  • Meteors – When these meteoroids come closer to Earth and enter its atmosphere they vaporize with a streak of light in the sky. They are then called Meteors or shooting stars.
  • Meteorites – When the meteors do not vaporise completely after entering the Earth’s atmosphere, they are called Meteorites.
  • Comet – A chunk of ice and rock originating from the outer solar system, often accompanied by a coma and tail.

What is a Meteor Shower?

  • Earth in its yearly motion around the Sun passes through a debris trail left behind by a comet. The meteor shower is caused when debris heat up as they enter the atmosphere and burn up in a bright burst of light.
  • When the debris is in space, they are called“meteoroids,” but when they reach Earth’s atmosphere, they’re designated as “meteors.”

What is Perseid Meteor Shower?

  • Perseid meteor Shower is the dust of Comet Swift Tuttle which passes through Earth every year.
  • The meteor shower is caused when debris heat up as they enter the atmosphere and burn up in a bright burst of light.
  • When the debris is in space, they are called“meteoroids,” but when they reach Earth’s atmosphere, they’re designated as “meteors.”

 

Comet Swift-Tuttle

  • Comet Swift-Tuttle, having a nucleus of about 16 miles (26 kilometres) wide, is the largest object known to repeatedly pass by Earth.
  • The Comet last passed nearby Earth during its orbit around the sun in 1992. It will next pass by the Earth in 2026.

About Geminid Meteor Shower

Usually meteor shower happens due to the debris left behind by a Comet. However, it

can happen due to an asteroid as well such as in the case of Geminid Shower.

  • Geminid Meteor shower is the dust particle of constellation of Gemini. Earth passes through the path of its parent asteroid 3200 Phaethon every year.

 

About 3200 Phaethon

  • It is an Apollo Asteroid and has characteristics close to a comet.
  • Sometime the orbits of an asteroid intersect with the orbit of Mars and Earth. The earth orbiting asteroids are called Apollo Asteroids.

3.3.3. SOLAR FLARE

Why in news?

 

  • Proxima Centauri (the second closest star to Earth) was found to be sending out massive solar flare. The finding diminishes the chance of life expected in Proxima Centauri b, a planet revolving in the habitable Goldilocks zone of this Red (Cool) Dwarf Star.
  • The 3 space based observatories (Astro-sat, Chandra (X-ray observatory managed by NASA), and Hubble Space Telescope) and a ground based Observatory HARPS (High Accuracy Radial Velocity Planet Searcher) participated in the multi-wavelength observational campaign and observed the solar flare in Proxima Centauri.

What is Solar/Stellar Flare?

  • It is a dramatic increase in brightness of a star thought to be due to the magnetic energy stored in the star’s atmosphere.
  • When observed in Sun, they are often accompanied by coronal mass ejection.
  • Solar flare ejects clouds of electrons, ions and atoms along with electromagnetic radiations.
  • Bombardment with such huge amount of energy (as observed in Proxima centauri) can strip water from the atmosphere or Oceans and sterilise the ground.

 

Impact of Solar Flare of Sun:

  • They occur in active regions around sunspots.
  • When flare is ejected in the direction of the earth, the particles hitting the upper earth’s atmosphere may cause AURORA/Polar light (Aurora Borealis-Northern light and Aurora Australis- Southern Light).
  • X-rays and UV rays may affect ionosphere and disrupt long range radio communication.
  • The radiation risks posed by solar flares are one of the major hurdles in manned space missions.

HARPS: High precision spectrograph mounted on European Southern Observatory’s 3.6m telescope at La Silla Observatory in Chile.

 

4. HALF OF THE UNIVERSE’S ‘MISSING MATTER’ IS FINALLY FOUND

Why in news?

  • In a world’s first, the elusive ‘missing’ half of the universe’s observable matter has been found.

Background

  • The universe is made up of regular ‘visible’ matter, dark matter and dark energy- though experts are yet to detect the latter two.
  • Measurements of radiation left over from the Big Bang showed that about 5% of the mass in the universe comes in the form of ordinary matter, with the rest being accounted for by dark matter (25%) and dark energy (70%).
  • Dark matter has never been directly observed and the nature of dark energy is almost completely mysterious, but even tracking down the 5% of ordinary matter has proved more complicated. Counting up of all the observable objects in the sky – stars, planets, galaxies and so on –only accounts for between a 10th and a fifth of what ought to be out there. The deficit is known as the“missing baryon problem”.
  • Now missing matter has been discovered. It is made of particles called baryons linking galaxies together through filaments of hot gas.

Hot Gas Filaments

  • The distribution of ordinary matter in the universe is not homogeneous.
  • Instead, under the action of gravity, matter is concentrated into so-called filamentary structures, forming a network of knots and links called the ‘cosmic web’.
  • Gas filaments between some galaxies contain subatomic particles called baryons.

What Is a Baryon?

  • Leptons and quarks are the basic building blocks of matter
  • Baryons are subatomic particles made up of three even smaller particles called quarks
  • Quark-based particles, baryons take part in the strong interaction between particles, whereas leptons, which are not quark based, do not.
  • The most familiar baryons are the proton and the neutron, which make up the central body of atoms. Baryons therefore comprise most of themass of the visible universe.

     

    • The best known lepton is the electron.

     

    Related information

     

    • Anti-matter: Every matter has its corresponding anti-matter. It shares the same mass as their matter counterparts, but qualities such as electric charge are opposite. For example, positively charged positron is the antiparticle to the negatively charged electron and proton has the negatively charged anti-proton.

     

    Dark Matter and Dark energy

     

    NASA defines it in the form of what it is not than what it is.

     

    • First, it is dark, meaning that it is not in the form of stars and planets that we see.

     

    • Second, it is not in the form of dark clouds of normal matter, matter made up of particles called baryons.

     

    • Third, dark matter is not antimatter, because we do not see the unique gamma rays that are produced when antimatter annihilates with matter.

     

    • Finally, it does not include large galaxy-sized black holes.

     

    It doesn’t interact with baryonic matter and it’s completely invisible to light and other forms of electromagnetic radiation, making dark matter impossible to detect with current instruments. But scientists are confident it exists because of the gravitational effects it appears to have on galaxies and galaxy clusters.

    Dark energy

     

    • Dark energy, discovered in the 1990s, is even more mysterious. Scientists have no plausible explanation for dark energy. According to one idea, dark energy is a fifth and previously unknown type of fundamental force called quintessence, which fills the universe like a fluid.

    • During 1990s, the scientists realized that instead of decelerating, the universe is expanding more rapidly. Scientists assume that the accelerated expansion of the universe is driven by a kind of repulsive force generated by quantum fluctuations in otherwise “empty” space. Also, the force seems to be growing stronger as the universe expands. For lack of a better name, scientists call this mysterious force dark energy.

     

    Difference:

    • Dark matter attracts, dark energy repels.
    • While dark matter pulls matter inward, dark energy pushes it outward.
    • While dark energy shows itself only on the largest cosmic scale, dark matter exerts its influence on individual galaxies as well as the universe at large .

    3.3.5. BOSONS

    Why in news?

     

    • Recently 125th birthday of famous physicist Satyendra Nath Bose was celebrated after whom Higgs Boson was named by CERN.

    Higgs Boson

     

    • It is popularly known as the God particle.
    • It was discovered by Large Hadron Collider (LHC), the world’s largest and most powerful particle accelerator, at CERN
    • CERN is the world’s largest nuclear and particle physics laboratory. At CERN, scientists and engineers are probing the fundamental structure of the Universe.
    • Satyendra Nath Bose worked with Albert Einstein to develop the Bose-Einstein statistics according to which bosons can overlap and coexist with other bosons.

    Fundamental of bosons

    • All fundamental particles in nature can be divided into one of two categories, Fermions or Bosons
    • Particles that  make  up  matter  called
    • Fermions
    • Examples: electrons, protons, leptons, quarks, neutrinos.
    • Particle that carry force called Boson. They
    • obey Bose-Einstein statistics.
    •  Bosons  are  sometimes  called  force particles  because  they  control  the
    • interaction of physical forces
    • Examples: photons, 4He atoms, gluons, W Boson, Z Boson.

     

    3.3.6. INDIA   NEUTRINO OBSERVATORY (INO)

    Why in news

     

    • Recently, Ministry of Environment and Forests (MoEF) granted environmental clearance to India-based Neutrino Observatory (INO) project to be setup in Bodi West hills, Tamil Nadu with certain conditions.

    About Neutrino

    • Neutrinos are one of the fundamental particles which make up the universe and second most abundant particle in the universe after photon.
    • Neutrinos are similar to the electron, with one crucial difference: they do not carry electric charge.
    • Neutrinos are of 3 types – electron neutrino, muon neutrino and tau neutrino
    • Neutrinos can be created in several ways, including in certain types of radioactive decay, in nuclear reactions such as those that take place in the Sun, in nuclear reactors.
    • It’s Nicknamed as ‘blueprint of nature’ by scientists.

    About Anti-neutrinos

    • They are antiparticles of neutrinos and are produced in the negative beta decay.
    • Antineutrinos (as neutrinos) are very penetrating subatomic particles, capable of passing through Earth without any interaction.
    • Neutrinos and antineutrinos belong to the family of leptons, which means they do not interact via strong nuclear force.

    India-based Neutrino Observatory (INO) Project

    • It is a multi-institutional effort aimed at building a world-class underground laboratory with a rock cover of approx. 1200m for nonaccelerator based high energy and nuclear physics research in India.
    • It and will have a 50,000-tonne magnetic detector to study neutrinos that are significant in particle physics.
    • In the 1960s, India had a neutrino observatory located at the Kolar Gold Fields in Karnataka. However, the laboratory was shut in the 1990s because the mines were being closed.
    • Significance: Determination of neutrino masses is the most significant open problem in particle physics today and is the key goal of the INO project.
    • Benefits: understanding the particle, understanding the evolution of the universe, role in nuclear non-proliferation through remote monitoring, study of Geoneutrinos might help creating an earthquake warning system.

     

    3.3.7. MOST ANCIENT SPIRAL GALAXY FOUND

    Why in news?

    • Scientists have recently discovered the most ancient spiral galaxy in the universe that existed 11 billion years ago.

    More about the news

    • The discovery was made by using a technique that combines gravitational lensing with the Near-infrared Integral Field Spectrograph (NIFS).
    • Gravitational Lensing is a phenomenon in which the gravity of a massive object (like a galaxy or a cluster of galaxies) bends and amplifies the light from an object that lies beyond it.
    • The galaxy, known as A1689B11, existed just 2.6 billion years after the Big Bang, when the universe was only one fifth of its present age.
    • In a spiral galaxy, the stars, gas and dust are gathered in spiral arms that spread outward from the galaxy’s center.
    • Spiral galaxies are exceptionally rare in the early universe, and this discovery opens the door to investigating how galaxies transition from highly chaotic, turbulent discs to tranquil, thin discs like those of our own Milky Way galaxy.

    3.3.8. SPACEX’S FALCON HEAVY LAUNCHED

    Why in news?

    • Recently, Falcon heavy rocket lift off from Cape Canaveral.

    More about Falcon Heavy

    • Falcon Heavy is the most powerful rocket in the world after NASA’s Saturn V.
    • It has been developed by private spaceflight company SpaceX and is 230 feet tall and can lift nearly 64 metric ton pay load to low Earth Orbit at a cost of 90 million USD.
    • The engine can be started multiple times to place payloads in various orbits such as low Earth, geosynchronous transfer orbit (GTO) and geosynchronous orbit.
    • Mongolia’s first satellite, Mazaalai is accompanying SpaceX Falcon 9 rocket
    •  It was launched through Joint Global Multi-Nation Birds Satellite Project funded by UNCESCO and JAPAN.
    •   Project  is  a  cross-border  interdisciplinary satellite project for non-space-faring nations, aimed at supporting developing countries to build and launch their first satellite.
    •  It is named after a Mongolia’s endangered gobi bear.

    3.3.9. VENUS SATELLITE

    Why in news?

    • Israel has launched its first environmental research satellite, Venus satellite which is built jointly by Israel and France.

    More on satellite

    • It is placed in sun-synchronous orbit and its goal is to obtain high-resolution photographs of specific sites to track various environmental issues
    • It will also monitor Earth’s vegetation to distinguish plants planted at as little as five meters apart. This makes possible “precision agriculture,” in which farmers would be able to accurately plan for water, fertilizer, and pesticide needs.
    • The mission will also test the operation of an innovative electric propulsion system based on the Israeli-designed Hall Effect Thrusters.

    3.3.10. WATER AS PROPELLANT IN CUBESAT

    Why in news?

    • Engineers at Purdue University in the US have designed and tested a micropropulsion system that uses liquid water as the propellant for orbital maneuvering of tiny satellites called CubeSats.
    • Pure water is chosen as the propellant since it is green, safe, easy to use and free from the risk of contaminating sensitive instruments by the backflow from plumes as in the case of thrusters using chemical propellants.

    3.3.11. THE REMOVEDEBRIS MISSION

    Why in news?

    • University of Surrey, UK has decided to launch Remove Debris mission this year to remove space debris.

    Significance

    • There is almost 7,000 tons of active space debris—from old satellites and spacecraft to lost components and spent rocket parts-orbiting Earth at any given moment which may take years to disintegrate.
    • More debris, could lead to more collisions – a cascade   effect   known  as   the  Kesslersyndrome which may render space eventually inoperable for important services like navigation, communications, weather forecasting etc.
    • The Remove Debris satellite platform will showcase four methods such as Net capture, Harpoon Capture, Vision-based navigation, De-orbiting process for release, capture and deorbit two space debris targets, called DebriSATs:

    International Space debris Committee

    • It is an international governmental forum for the worldwide coordination of activities related to the issues of man-made and natural debris in space to facilitate opportunities for cooperation in space debris research, to review the progress of ongoing cooperative activities, and to identify debris mitigation options.

     

    3.3.12. NATIONAL LARGE SOLAR TELESCOPE

    Why in News?

    • Wildlife panel of the Union Environment Ministry had in 2017 cleared plan for diversion of Ladakh forest area for national large solar telescope (NLST).

    Why Ladhak Region for NLST

    • High altitude region which will fundamentally enhance the NLST capacity.
    • Prolong region of sunshine, clear sky (high visibility) with low sessional variation.
    • Low concentration of aerosol and dust particles in sky.
    • Lower wind speed and presence of mild gusts and direction; also the laminar winds blowing in favourable condition.

    What is National Large Solar Telescope (NLST)

    • It will be a 2-m class, multipurpose and state-of-the-art solar telescope (NLST).
    • NLST will be the largest solar telescope in the world.
    • The project of NLST would be implemented by Bangalore based, Indian Institute of Astrophysics (IIAP).

    Features of National Large Solar Telescope

    • It is capable of doing both day and night astronomy because of unprecedented high spatial resolution.
    • It will fill the longitude gap between Japan and Europe. Currently, there is no telescope between these regions.
    • It will help in understanding the formation and decay of sunspots by using Helioseismology, which is a powerful technique for probing the solar interior using acoustic Oscillations.

    3.4. IMPORTANT TERMS RELATED TO SPACE

    • Geo Magnetic Storm: A geomagnetic storm is a major disturbance of Earth’s magnetosphere that occurs due to exchange of energy from the solar wind into the space environment surrounding Earth. They create beautiful auroras or the Polar Lights, but they also can disrupt navigation systems such as the Global Navigation Satellite System (GNSS) and create harmful Geomagnetic Induced Currents (GICs) in the power grid and pipelines.
    • Kuiper belt: It is flat ring of icy small bodies that revolve around the Sun beyond the orbit of the planet Neptune. It is home to three officially recognized dwarf planets: Pluto, Haumea, and Makemake. It is thought to be the source of most of the observed short-period comets, particularly those that orbit the Sun in less than 20 years
    • Exoplanets: Planets outside our solar system are called exoplanets. Most of these are part of star systems. There are some “rogue” exoplanets, which are not attached to any star system. The first exoplanet, 51 Pegasi b, was discovered in 1995.
    • Goldilocks” zone: The exoplanets must orbit within a distance of their stars in which liquid water can exist on the planet’s surface, receiving about as much sunlight as Earth.This distance is called the “Goldilocks” zone because it is neither too far or too close to the star that life becomes impossible.
    • Dwarf Star: A relatively small, low mass star that emits an average or below average amount of light, when compared with Giant or Super-Giant Stars.The colour of dwarf stars can range from blue   to   red,   the   corresponding temperature varying from high (above 10,000 K) to low (a few thousand K)Red Dwarfs are the most common star in milky way. Our Sun is a Yellow Dwarf Star.
    • A white Dwarf star is a remnant of Red Giant Star which has exhausted  all  its fuel. The  maximum  mass  of a stable white dwarf star can be 1.44 times the mass  of  the  sun  also  known  as Chandrasekhar limit
    •  A mass greater than the limit will turn the star into a neutron star or black hole at the end of its life.
    • Brown dwarfs, sometimes called “failed stars”, are spread throughout the Milky Way.They are strikingly similar to Jupiter. Scientists study their atmospheres in order to look at what weather on other worlds might look like
    • International space station: It is a multi-Tidal Locking – It is the name given to the situation when an object’s orbital period matches its rotational period. A great example of this is our own Moon. The moon
    • takes 28 days to go around the Earth and 28 days to rotate once around it’s axis. This results in the same face of the Moon always facing the Earth. Recently, discovered hottest known planet, designated KELT-9b is also tidally locked to its star.
    • International space station: It is a multi-nation project with contributions from 15 nations. However, 5 major partners include USA, Russia, Europe, Canada and Japan. It is a habitable artificial satellite in low earth orbit and is the largest single structure humans ever put into space. Astronaut time and research time on the space station is allocated to space agencies according to how much money or resources that they contribute.

     

ROBOTICS

INTRODUCTION

  • Robotics is the field of Science and Technology that deals with the design, manufacture, and applications of robots and using computers for their manipulation and processing.Robotics is based on the word ‘Robot’ coined by Karel (Joseph) Capek. The word Robot means self – labour. A Robot is a machine capable of carrying out complex series of actions automatically and replaces human effort, though it may or may not resemble human being in appearance or exhibit human like behaviour.

CHRONOLOGY

  • 1928 – 1stJapanese Robot GakuTensoku
  • 1954 – 1st truly modern robot,highly operated programmable and teachable was invented by George Devole named “UNIMATE” 1956- The phrase “Artificial Intelligence” was coined by John McCarty and Marvin
  • 1973- KUKA,            Germany manufactured 1st robot with 6 degrees of freedom named ‘Famulus’ with electronically driven axes
  • 2000- 1st humanoid robot ASIMO (Advanced step in Innovative Mobility) manufactured by Honda can walkat a speed of 6km/hr.

CLASSIFICATION

  • Robots can be categorised into two based on the jobs they perform.
  • Work which a robot can do better than a human being in terms of speed, accuracy and endurance. For e.g. Industrial
  • Jobs which a human can do better than a robot, but robots can free us from dangers, dull and dirty task. For e.g. Domestic robots,

2.3.1     Industrial Robots:

It is defined as an automatically controlled, re-programmable, multi- purpose, manipulator designed to move in three or more axes.Typical applications of robots include welding, painting, assembly, pick and place (such as packaging, pelletizing), product inspection and testing; all accomplished with high endurance, speed, and precision.E.g. UNIMATE and FAMULUS.

Picture of FAMULUS robot

  • Humanoid robots have human like appearance. It is an autonomous robot because it can adapt to changes in its environment by itself and continue to reach its goal. This is the main difference between the humanoid and other kind of robots like industrial robots.

The capacities of Humanoid robots include

  • Self- maintenance (it can recharge itself)
  • Autonomous learning (learn /gain new capabilities without outside assistance. Adjust strategies based on the surrounding and adapt to new situation).
  • Avoid harmful situations to people, property and Safe interaction with human being and  environment.

ASIMO

  • It is the humanoid robot created by Honda motor company of Japan. It resembles a small astronaut having a backpack and can walk at the speed of 6 km/hr. It was created to help people who lack full mobility and is used to encourage young people study science and mathematics

Picture of a DOMOBOT 

Picture of ASIMO

Domestic Robots

  • They are robots used for household purposes. One such highest level of domestic robot known as DOMOBOT, used for household chores is automatically connected to the wireless home network or Wi-Fi.

Personal Robots

  • A personal robot is one that enables an individual to automate the repetitive or minimal part of home or work life making them more productive. Personal robot is the one that will change the use of robots from being large, expensive, hard to use to being small, inexpensive and easy to use. Vast improvement in motion planning, computer vision, natural language processing, automated reasoning are indispensable to turn a robot like ASIMO into a universally applicable personal robot

Picture of personal robot

ESSENTIAL COMPONENTS OF ROBOTS

  • Hands of robots are called End effectors. End effector can be a gripper consisting just two fingers which can open to pick up and close to release a range of small objects.It can also be a vacuum gripper which can manipulate large electronic components like car
  • Arms are called Manipulators
  • Actuators are muscle and joints in the robot

Planning, controlling and sensing in Humanoid Robots.

  • Planning and control in robots is to focus on self-collision detection, path planning and obstacle avoidance by gathering information throughinformation    about     the surrounding  environment allowing the robot to interact with the world. Proprioceptive Sensors
  • These sensors are used to sense the position, orientation the speed of the humanoid robots

ROBOTICS AND ARTIFICIAL INTELLIGENCE

  • The field of Robotics is closely related to AI. AI refers to emulation of        intelligent behaviour by a machine. AI requires sophisticated computer to perform complex problem solving tasks that require thinking and reasoning while processing vast amount of knowledge. Intelligence is required for robots to be able to handle such tasks as object manipulation navigation with sub-problems      of  localisation,mapping and motion planning. AI is the area of computer science focussing on creating machines that can engage on behaviours that humans consider intelligent.

Automobiles and Manufacturing Industry

  • Industrial robots due to their speed, accuracy, reliability, endurance are readily used in manufacturing of cars. Tasks such as welding, spray painting, loading, material handling and assembling can be performed for better by an Industrial robot than a human.In manufacturing industry, a key factor in attaining level of productivity is today going through a new industrial revolution, benefiting from rapid progress in the areas of robotics, computers, intelligent sensors and Control

Electronics

  • Pick and place of robots are used in mass production of PCBs (printed circuit board). They help to remove tiny electronic components from strips/trays and place them onto PCB’s with great accuracy. Such robots can place several components per second, far outperforming a human in terms of speed, accuracy and reliability.

Packaging Industry

  • Industrial robots are extensively used for pelletizing ad packaging of manufactured goods. For example, taking drink cartoons from the end of conveyor belt placing them rapidly into boxes

Means of Transport

  • Mobile Robots act as automated guided vehicles with scanning, lasers are used to transport goods around large facilities such as warehouses, container ports or hospitals.

Military Application

  • Tele Robots are Unmanned Aerial Vehicles which can be used to perform dangerous tasks in faraway/in accessible places. These robots can be controlled from anywhere in the world allowing any army to search terrain and fire on targets without endangering those using it. Hundreds of robots such as L- robot, PACKBOT are being used in Iraq and Afghanistan by US military to defuse roadside bomb/ improvised explosive devices. Autonomous Robots such as SEEKUR are being developed to perform security and surveillance tasks at military facilities.

Health & Medicine

  • Robots have helped us to realise remote surgery, minimum invasive surgery which uses robots in performing surgery. One such system widely used is Da Vinci surgical systems. Remote surgery/ telesurgeryis the ability of the doctor to perform surgery on a patient even though they are not physically present in the same location. It combines the elements of robotics, cutting             edge communication technology such as high speed data connections
  • Here the physical distance between surgery and patient is immaterial. It promises to allow the expertise of specialized surgery to the patient worldwide without the need for the patients to travel beyond their local hospitals.Minimal    invasive surgery avoids open invasive surgery in favour of closed/local surgery with fewer traumas.

Major advantages of Robotic surgery include:

  • Reduced blood loss which reduces the risk of needing a blood
  • Smaller incision which reduces pain and shortens recovery
  • Less pain leading to less pain medication.
  • Hospitalization time/duration of hospital stay is
  • Reduces the incidence of post- surgical complications

Environment

  • Nano-robots can be used to clear oil spill & dis-assemble pollutants especially non-biodegradable ones reducing their polluting impact.Robots can be used in nuclear plants for handling and disposal of nuclear waste materials which saves the occupational workers in the nuclear plant from potential exposure to hazardous radiations.

 Societal and Domestic functions

  • Humanoid robots can perform tasks like personal assistance where they will be able to assist the sick elderly people. For example Japanese WAKAMARU domestic robot made by Mitsubishi company in 2005
  • Certain domestic robots like ROOMBA can also free us form dirty and dull tasks by taking up simple, unwanted jobs at home like vacuum cleaning and lawn mowing.

Space Exploration

  • Autonomous robots are used in space exploration as they can perform desired tasks in unstructured environment, without continuous human guidance. Remotely operated vehicles is an unmanned spacecraft can act as Lander that makes contact with an extra- terrestrial body and operates from a stationery position or as a Rover that can more over terrain once it is landed. Robotic space crafts can acts as space probe operating in the vacuum of space and withstanding exposure to radiation and themarketingheaven extremes of temperature in addition to some planetary destinations such as Venus or vicinity of Jupiter are too hostile for human survival.

  Disaster Management

  • Autonomous robotic systems designed to explore and map abandoned mines which pose a significant threat to society. Abandoned mines have dangerous explosion of methane gas which accumulates when they are no longer ventilated. One such automatic robotic system designed to automatically explore and acquire 3-D maps of abandoned        mines       is GROUNDHOG, developed by USA.

ADVANCEMENTS IN INDIA Premier Institutes of robotics in India include

  • Centre of Robotics and Mechatronics IIT Kanpur,
  • Various IIT’s offering course in CSE with specialization in AI which is an integral part of Robotics.
  • Centre for AI and Robotics, Bangalore has developed CHATUR Robot, an intelligent robot with vision sensors which can pick up objects within its visual
  • Scientists from university of Ulster London and IIT, Kanpur have teamed up to investigate how to develop intelligent Robotic devices to devices to help people with severe vision disabilities and achieve greater independence.
  • Recently, AIIMS, New Delhi has successfully performed robotic surgery where it removed thymus gland from patient suffering from ‘Myasthenia Gravis’ (A disease characterized by progressive muscular weakness, which can sometimes be life-threatening)
  • India is emerging as the hub for industrial Many American, Korean and Japanese firms are using them.
  • Ahmedabad- based GRID Bots will launch ROBOGRAD a robot that can clean homes and keep an eye on intruders.
  • They are the only company with the highest number of robots variant going up to 280. KUKA Robotics (India) Pvt Ltd is the only robotics company in the world supplying robots to the entertainment and medical sector. Recently Dr.Manmohan Singh talked about the need to increase activities in the Indian Robotic Space, since we plan to go in for precision guided munitions as well as unmanned vehicle   technologies in the 12thand 13th five year plan period

ECOLOGY AND ENVIRONMENT

INTRODUCTION

  • Ecology is the study of inter relationship of living organisms with one another and with the environment they live in. Environment refers to the surrounding in which the organisms (animals plants) live. It comprises of all biotic factors such as air, temp, rainfall, soil, H2O etc.
  • This relationship has been severely effected by man’s intervention in environment this interference is largely due to increased agricultural and industrial activities. This intervention has led to
    1) Deforestation 2) Depletion of Biodiversity 3) Change in climate of the Earth.
  • Deforestation refers to destruction of forests for timber, fuel, and for open spaces to be used for agricultural and Industrial purposes, without planting new trees to replace those that a lost or without wishing on a cycle – the natural forests to regenerate has a leads to flood, drought a loss of wild life. It also leads to increased concentration of CO2 in the atmosphere intensifying the global warming effects altering the rainfall and temp.pattern of the region.

STEPS TAKEN BY GOI

New Forest Policy:

This policy was enunciated in 1988. It stipulated that atleast 1/3 rd of the total land mass of India shall be brought under the forest cover to maintain optimum ecological balance and it would be done by bringing 80% of the area in hills and 20% of area in plain under forest cover.

Social Forestry

  • It is also called as community forestry a extension forestry it was initiated in 1978 by UNDP for the purpose of growing or raising fast closer to pop. centres so that these tree varieties would help in providing food, fuel, fibres, fertilizers and fodder and reducing the existing pressure on the forest cover. It seeds to ensure the participation of the local people in rising and maintaining the forest for their own for this reason, in this scheme, forests are called for the peoples of the people and by the people.However, in the 1st phase, this scheme did not succeed much.
  • Non-scientific selection of spices of trees (Eg.) Eucalyptus (exotic tree) was selected was a fast growing spices which mainly beneficial to the Industry not to pep lox pop. This fundamentally change the character of scheme from social presty to commercial forestry.
  • This scheme largely remain the scheme of the Government without creating much interest among people. It lacked people’s support.
  • The scheme could not prevent cattle grazing and cutting down of tree branches (i.e. lopping).
  • This scheme was relaunched in 1992 under which the local spices of trees were preferred for selecting such tree varieties and ensuring people’s participation.

Biosphere Reserves

These are unique and representative ecosystem of terrestrial and coastal area that are internationally recognised within the framework of UNESCO’s man and biosphere Programme (MAB) started in 1985 for which UNESCO extends technical and financial assistance to the member countries in promoting and maintaining biosphere reserves in promoting and maintaining biosphere reserves.

A biosphere reserves has 3 objectives

  • In situ conservation of biodiversity of natural and semi natural Ecosystem and landscapes.
  • To contribute to the sustainable eco.development of the human population i.e. living and around biosphere reserves.
  • To provide facilities for the long term ecological studies environmental education,research,training and monitoring.

To achieve its objectives a trosphere reserves is classified into 3 differences

  • From centre to periphery, it is divided into core zone, buffer zone, transitional zone
  • Unlike Brosphere reserves which are internationally recognised, National Packs recognised at national level by exacting a law by parte and wild life sanctuaries are recognised at state level.
  • Unlike National parks and wild life sanctuaries biosphere and considered human beings as an integral components of the ecosystem to be conserved therefore it does not exclude HB from the – conserved.
  • The 1st biosphere reserves notified and established was Nilgris BR in 1986. It is spread over the regions of Kerala, Karnataka and Tamil Nadu. It include world famous silent valley. It is present in the Kindle bills of Kerala in the Western Ghats India is one of the 18 Mega Bio-diversity rich regions of the world. India possess 6.7% of the total biodiversity was 3 of its MBR are namely
  • 1. Southern part of Western Ghats
  • 2. Northern East region of the country
  • 3. Sub-Himalayan belt
  • Silent valley is the only equatorial evergreen rain forest in the country as it possesses abundant sunshine and receives rainfall for not less than 280 days in a year therefore of abundant heat and moisture it has rich Bio-diversity of both plants and animals. Some of the unique animal species that is found here
  • 1. Malabar squirrel
  • 2. Lion tailed masque
  • 3. Nilgiri-thar (deer)
  • UNESCO has also recognised silent valley as a would heritage site therefore of the richness of its biodiversity. It derives its name of the fact that even though it is rich in insect life, it is free from insect noise of cricket, cicada.

Depletion of Biodiversity:

Biodiversity refers to sum total of all the speices of plants and animals on the planet that is it includes all the genetic resources of the earth about 6% of the biodiversity of the earth is found in the tropical rain forests. About 70% of the total biodiversity is available in developing countries.

Importance of Biodiversity:

  • Every genetic resource has certain specific characteristics of its own therefore the genetic material of Biodiversity can be used to obtain various valuable products that is essential for human survive leg. Biodiversity provides food, seeds, medicines, and specimens to be used by biotechnologists to develop new genetically modified organisms possessing certain special features Biodiversity also regulates hydrological, Ecological and overall climatic cycle on which human life is dependent.
  • So far, man has not full understood the uses of Biodiversity (eg.) it was recently discover that scrab does not suffer from bacterial discases. This Info. can be exploited by H.B to improve their health standard. However, there fore of unsustainable or exploitative use of these biological resources, in dew course of time, these resources will become earliest and speices once lost is lost forever as at present the H.B. is no position to recreate biodiversity. We can only utilise it for improving our quality of life.
  • Difference in terms of use of biodiversity in between development and developing countries  Most of the Biodiversity of the world is found in the developing countries and the technical and the funds to utilise these biological resources – available with the developed continues since the existing patent laws do not permit patenting of natural products, the developing countries can’t get their Biodiversity patent making it freely accessible to be used by developed countries. However, any valuable product produced by human effort even if its include natural product as the raw material it can be patented there fore such products developed by – no longer fully available to developing countries.
  • Since during countries need technological and financial strength to consume their biodiversity and developed countries and reluctant to share this, there is an impending danger on sustainability of the Biodiversity.Moreover developing countries must be helped to solve the problems of poverty and illiteracy to make their conservation programmes more effective.

Convention on Biodiversity:

It was the 1st international effect to recognise and protect the interests of the developing countries in the use of their Biodiversity. It was signed in June, 1992 during East summit conference at – where 175 countries including India & USA attended the conference. This convention is legally binding on its member countries it recognises that Biodiversity provides food, medicine, energy and other household products of daily survival and to Biodiversity is improving for regulating the hydrological, ecological climatic cycle on which human life is dependent this convention puts forward 3 goals.

  • Conservation of Biodiversity that includes plants, animals, micro organisms, crop varieties and stock breeds.
  • Sustainable use of biological resources of the earth.
  • Equitable sharing of the benefits that would accrue from such a use.

CBD recognises that developing so have the right over the use of their Biodiversity and the benefits generated by the use of such resources. Such Bio Resources can be utilised only with the prior consent of the providing countries that too on the basis of mutually agreed benefit sharing mechanism. It also specifies that industrialised countries shall have to extend technical and financial assistance to developing countries of their Biodiversity and community knowledge and practices of the indigenous people should be respected.

GENETIC COLONIALISM / BIO PIRACY:

  • Genetic Colonialism / Bio Piracy is an expression used in the field of patenting of Biological products. It means obtaining patent for a biological product by a company or an – for commercial exploitation of the biological product under guise of an invention or an improvement of the product that is known for characteristics during to its place of origin and the traditional community knowledge of the native people. It complaints to the rights of traditional people who have actually natured there products over the ages for which they will now have to shall out royalty to these companies.
  • The continuously of Genetic Colonialism come to light when a US based multinational co. known as W.C. grace in 1916 obtained a patent to the bio- pesticide made for from the neem seed of the inhabitant place.

GLOBAL WARMING:

It refers to increased trapping of terestial radiations there fore of 6 Green House gases that result in increasing mean annual global temperature of earth surface. The 6 GH gases are CO2, KH4, oxides of Nitrogen, Sulphur – fluoride CFC / Hydro FC (highest heat trapping SF6 capacity), Perfluoro carbon and water vapours naturally present.

Implication of G.H.E.

  • The most serious impact would be interims of melting of Polar ice gap caps that would result in increasing the level of sea. The sea level would also increased – of warm water expansion — on expansion, it occupies more space Acc. to IPCC, the sea level would increased by about 8-88 cm by the end of 21st century. This would pose serious danger specially to low lying areas of the earth nearly 1/3rd of the total land mass may be submerge. (Eg.) certain areas such as Bangaladesh, coral islands, soloman islands, Tabeti (South -) Maldives, Lakshadweep, Andaman & Nichobar Islands.
  • Warm H2O will also form a lid over oceans that would seriously disturb the process of formation and circulation of ocean currents that essential for recycling of ocean resources. It would dec. photosynthetic activity increasing the biological demand endangering the aquatic life seriously.
  • Tropical regions would bear the man burnt of global warming. The areas would experience extreme weather conditions in the form of heavy rainfall intense heat wave, frequent floods, droughts forest fill and service cyclonic storms. These condition would also result in increasing various vector borne diseases in the form of epidemic endangering human health.
    Farmlands would be converted into acid regions and deserts would start blooming because of alteration in temperature rainfall pattern. This transformation would result in making all those agricultural practices that has been developed over the ages –
  • All these factors may result in large scale migration of human population. This migrating pop would have no respect to the polity, social and economic structure of the countries it is migrating to this may seriously effect world peace order.

Tell tale evidence of Global warming:

Larson ice shell:

  • The Northern most tip of Antartica has already developed huge cracks because of which large chunks of ice sheets have broken and drifted away into the oceans exposing the underneath sea for the first time in last 20,000 years. The exposed sea would absorb more heat than the ice sheet that cover it increasing the temperature further and resulting into a cascading effect that will melt more ice. Such an event was projected to occur by the end of – decade of 21st century and since this is already taken place. It indicates that G.W.is taking place at an accelerated pace.
  • There is an increase in the intensity and frequency of elmino of the coast of Peru. This was considered the severest El- nino ever visited El-nino used to appear once in 7 years and last for 12-15 months but now it has started appearing once in 5 to 7 years lasted for about 15-18 months.
  • In 1998, large scale destruction of coral life was noticed in Gulf of Member and Palk Strait of the coast of Tamil Nadu in India. Since coral self is extremely sensitive to temperature, its heavy destruction indicates something seriously wrong with the temperature. There has been a constant inc. in the summer temperature of both North and South hemispheres. The summer of 1998 and 2002 Were the two hottest summer recorded since 1860. The 10 hottest summers during this period have all been recorded after 1987 and 9 one of them are after 1990.
  • There has been a constant inc. in the height of sea waves. Since 1990, sea waves have increased by about 2-3m and the dangers of this inc. are already witnessed by certain low lying countries specially in South Pacific eg. Tahite, Solomon Island their coastal areas have been experiencing submergence and due to advancing sea.

Measures to reduces GHG :

    • UNFCCC – United Nations Frame work of convention on climate change was taken up during the Earth summit conference in June 1992 at Rio, Brazil. It was a – global attempt to – the emission of GM gases of developed countries. Under this conventions, developed countries voluntarily agreed to reduce agreed to reduce agreed to reduce the omission of their GHG below their 1990 levels by the year 2000. The developing countries did not have any such obligations under this convention.This convention also provides for holding annual conferences of the member parties to negotiate and to arrive at a consensus so that a legally binding convention can be achieved. As part of UNFC conference if parties held at Berlin but it was during only 3rd conference of parties that was held in December 1997, Kyoto Japan a consensus could be achieved to impose legally binding obligations on the industrialised countries to cut down the omissions of their – Under this protocol,the developedncountries(39)as a whole undertook to reduce the omission of their 6GHG by atleast 5.2% below the 1990 level by the commitment years of 2008-12.The developing countries did not have any obligations under the protocol but they were required to accessed developed countries interms of achieving their targets. To ensure this co-operation, Kyoto protocol provides for a clean development mechanism under which a developed country can set up various Joint complementation L-friendly projects with the help of a developing country in the developing country and whatever omission reduction achieved, that would be taken as credit to the target of developed country. In this mechanism a develop country also purchase certain certified omission reduction CERs. credit that is awarded by clean Dev Mechanism Executive Board (CDMEB). These credits are approved by a web of operating authorisation. (Eg.) India has developed certain eco friendly tech. such as in produce of cement, steel and conversion of biomass to energy. These CERs can be sold to various developed countries to achieve their targets. This is also called as carbon trading. The national behind CDMES that G.HG emission reduction achieved anywhere on the earth is a good thing Kyoto protocol was supposed to enter into force 90 days after its ratification by all these developed countries who responsible for making atleast 55% of the total GHG omissions of developed countries as a group Russia ratify this protocol on 22nd Oct2004 making it enter into force on 16th Feb 2005 Appraisal. This protocol has been described as socially unjust as it is not based on the percapita emission concept which is necessary. abou 20% of the world’s total population that resides in 10 developed countries,is responsible for almost 80% of the totals GHE emission whereas on the other hand, remaining 80% of total population in developing countries makes 20% of the remain GHG emission. The percapita emission level in Western Europe and Northern part in America, the PCE of 30.40 times were more than that of developing countries are guilty of indulging in extravagant utilisation of natural sources to fulfil theirrecovery-based demands.Hence, this protocol is socially unjust.
    • Under CDM, the developed to can take credit for the GHG emission reduction achieved in a developing to with its assistance without making a significant domestic contribution, a developed country is still able to fulfil its obligation.
    • With the Eco. collapse of East while USSR, the level of GHG emission of developed countries has already come down by 4.5% of its 1990 level ….. in red terms, developed countries have to reduce their GHG by 0.7% which can be easily done with the help of CDM.
  • The seller of CERs may sell at its own terms and conditions, the protocol that is suppose to be ecologically effective is – more as a trading agreement rather than an ecological agreement.
    India and China are leading the developing countries in their stand against the developed countries. India wants that an official distinction be recognised in between the luxury based emission of the North Survival based emissions of the South. The developing countries also favoured that any international arrangement to resolve the problem of G.W. should be based upon the per capita emission norms. According to India such an arrangement alone can leave the world away from C based energy generation and consumption pattern to a C free world.
  • A new Asia Pacific Partnership on clean development in climate was announced by Australia, Japan, China, South Korea, India, USA in Virticane, Laos on 28th July 2005 during ARF (Asian Regional -) meeting. According to India, this partnership is aimed at developing deploying and transferring – C friendly cost effective more efficient technologies for the purpose of pollution reduction, energy security and climate change concerns in consonance with the obligation of UNFCCE.

Depletion of Ozone:

    • O3 is a tri-atomic allotrope of O. It is a bluish poisonous gas. It is also used as disinfectant. O3 is present at a height of 40 kms from the surface of the earth. O3 is important for two significant contribution in the atmosphere

1) It traps harmful UV says from sun to reach earth surface.

2) It helps in transferring heat from stratosphere to troposphere where this heat is meant 4 weather phenomenon O3 remains in a dynamic = of formation and destruction if not disturb otherwise by human intervention O3 is constantly formed by the action of UVC rays and destroyed by UV-B rays. UV-C, UVC bring about atomisation of moleculer O where the atomic and moleculer O joint together to terms the O3 molecule. In this process, UVC is completely absorbed with the O3 layer. UVB brings about its destruction and is also able to reach earth surface if it is already depleated thereby causing damage to life and property UVA rays are able to pass through O3 only to get absorbed in troposphere.

    • Human intervention has resulted in release of various O3 depleting substances in atmosphere. These ODS are man made substances that rest with O3 and destroy it. They are CFCs – man made gas which is used as a refrigerant (Poly Methane Foam PUF).
    • CFC is a highly stable compound as it is extremely inert or inactive near earth surface, it does not cause any harm to life but being light, it is able to rise up to reach stratosphere where it breaks down into its constituents to release chlorine atom. Released reacts with O3 to form an unstable intermediate compound known as chlorine monoxide that breaks down to – Cl + O atom.

Cl + O3 – Clo + O2

  • A single Cl atom is sufficient to break down 1 Lakh molecule and this destructive effect com. continue upto 100 years.
  • ODS – hatogens also called as Halons. Halogens are used in fire extinguishers also used in aircrafts, space rights, ships and submarines. Their O3 depleting capacity is nearly 3-
    10 times more than that of CFCs.
  • CCL : It is mainly used in making paints and pesticides. It is also used as a solvent in various pharmaceuticals agency and its capacity to destroy O3 is equivalent to CFCs.
  • Methyl Chloroform : Also used as a solvent in various precision mental works and as O3 depleting capacity is 1/10th of CFCs.

Ozone depleting substances found in nature:

Oxides of N destroy O3 molecules these oxides a produced when N reacts with O in the presence of high temperature eg. Forest Fire, Volcanic eruption, exhaust fumes of high flying aircraft.

Ozone Hole:

  • Ozone Hole refers to thinning down of O3 and even complete disappearance of O3 over a part of the earth surface. At present, the O3 H of the phenomenon is a temporary phenomenon mainly witnessed over the poles. It starts appearing in the winters and reaches its largest extent in early spring to disappear in summer only in reappear in winters. The OH is the largest over Antartica in Octobers and over Arctic circle in April. It was not discovered over Antartica in 1985 and has been increasing in size since then. Now it has reached to the extyent of covering almost the entire continent. Due to extreme weather conditions over Antartica, OH is bigger in size here than it is over North Pole. Except for poles nowhere is there is complete depletion of O3. Sunlight is needed 4 creation of O3 and since over poles, there is no sunlight for 6 months during winters, O3 is not created but only destroyed by the various O3 depleting substances that has been brought have and – crystallised to melt and deplete 3 gradually by arrived of summer O3 formation rest acts in the OH created in winters is replugged to be refumed not winter.

Replacements to O3 depleting substances

1) Hydro CFCs (HCFC – 22)

It is an unstable compound – of presence of H – bonds. It breaks down easily in the lower atmosphere liberating most of its Cl here only and less amount of Cl reaches higher up to destroy O3. Its depleting capacity is 10th of CFC. therefore it is seen as an intermediate but not a permanent solution. Moreover HCFC is most suitable 4 large scale refrigeration therefore its use demands large scale compressors for which domestic refrigerators need to undergo reengineering.

2) Hydro Fluoro Carbon (HFC – – b4A)

It is 100% O3 friendly as there is no – but it is expensive, inflammable. toxic and a powerful GJ gas.

3) Propane & Butane :

They are readily available. They are cheap as they are easily obtain from nature they can also be used as excellent refrigerant but they are highly inflammable and poisonous.

4) NH3:

NH3 is also cheap and an effective refrigerant. It is highly corrosive in native there fore it should be candled carefully. Indian Institute of Chemical Tech. Hyderabad has developed a process of — (HFC – B4a – R B4a) only 4 multinational co. from Japan and USA and France has this tech.

EFFORTS TO SAVE OZONE:

Montreal Protocol:

  • Effects to save O3 started from early 70’s leading to adoption of Vienna convention in 1985 but a more significant effort was in the form of Montréal protocol in 1987, which was undertaken by developed countries to phase out their emission of CFCs completely by end of December 2000 except for their medical use. They shall also phase out other O3 depleting substances except 4 their use in extreme situations.
  • The Montreal Protocol was amended by London protocol in 1990. It provided 4 establishment of a multilateral fund which will be contributed by developed countries and will be utilised to Montreal Protocol. This fund will be utilised in during – to develop the technical for manufacturing replacements to O3 depleting substances by 2010.
  • Subsequently in Copenhagen in 1993, the member parties of Montreal Protocol agreed to advance the deadline of phasing out of O3 depleting substances by 5 more years.

India and Montreal Protocol :

India signed Montreal Protocol in 1992. In 1998 the ministry of Environment and forest drafted various rules and regulation with the objectives of phasing out O3 deputing substances. According to these regulation, India shall phase out its O3 depleting substances by 28 February 2003. India has already phased out balagens of balons and in the way of phasing out CFCs also. According to the MOEF, rules and regulations the manufacturing of aerosol products excluding their medical use in the firm of metre dose inhalers shall be prohibited, — manufacturing of mobile Acts and from products including various be prohibited. These regulations the manufacturing, consumption, scales export and import of CFCs to those countries that – party to Montreal Protocol beyond the stipulated tone period. – since 1998 no fresh investments for expansion of the existing capacity of O3 depleting substances.

In order to income Public awareness about the need to protect the O3 layer 16 September is world wide is observed as International O3 day.

SUSTAINABLE DEVELOPMENT

      • Sustainable Development is the one in which natural resources are utilised rather than exhausted or exploited.Basically, Sustainable Development manages economic growth in a way that it does not result in damage to the environment Sustainable Development depends upon the principle that given enough time nature is able to recycle its consumable resources by balancing the ecological requirements of the society with ecological concerns. Sustainable Development seeks to satisfy the need of the people without endangering the potentialities or for future generation as it seeks to integrate both economics and environmentalism into a single dynamic force Sustainable Development.
      • Sustainable Development does not mean no growth but it means the kind of growth that humanity can live with forever Sustainable Development admits material growth is a necessity for any society to grow but simultaneously it also admits that to achieve this material production, mankind can’t act irresponsibly to nature that is the present generation can’t progress at the expense of future generation.
      • Sustainable Development certain parameters that necessary to provide eco-growth along with maintenance of environment these parameters include populate stabilisation.
      • Development of green economic friendly technologies,their deployment and transfer to developing countries, efficient use of natural resources that would reduce production of waste and would prevent pollution, Integrated environmental system Management (IESM). Therefore, achievement of Sustainable Development by taking case of both economical growth and environment there is required to being a significant attitudinal, social, cultural changes in the population.

Obstacles in the path of sustainable development

There are 2 major obstacles
1) External obstacles 2) Internal Obstacles

1. External obstacles:

External obstacles is in terms of vast economical disparities between the developed and developing countries where the material wealth is mostly concentrated with the developed countries creating wide disparities in the consumption pattern. About 24% of the world’s population living in 10 industrialised countries has excess to almost 84% of the total energy whereas the remaining 76% of the total population of the world living in developing countries sustain itself on 60% of world energy resources. Therefore this unsustainable exploitative and – consumption pattern places enormous strain on world’s natural resources. The developed all are further reluctant to give away their exploitative development. Moreover, they also refuse to on up their responsibility to maintain the environment the success of Sustainable Development also depends upon the investments that are support to be made in Rural and Development of new C friendly techniques and sharing with the developing countries. The North is reluctant to extent the technical and financial assistance to the South (developing countries).

2. Internal Obstacles:

Internal Obstacles is in terms of the fact that the majority of the wealth generated by a country is consumed by the minority of its population. This sets an unsustainable – distorted consumption pattern within a country and in the success of Sustainable Development depends upon the success of sustainable consumption particularly by developed countries and eradication of poverty and illiteracy in the developing countries. It success also depends upon the necessary changes to be bought about in present globalisation pattern as in its present firm. It supports the extravagant consumption pattern of the North.

World Summit on Sustainable Development (WSSD)

      • Sustainable Development was an International attempt that took place on 26 August 2002 at Johanesberg to promote the concept of Sustainable Development at par with other international issues the by issues discussed were.

1. Concerns about climate change : This summit strongly urged developed countries to ratify the protocol.
2. 2nd Was Trade, it reaffirmed the idea of phasing out agriculture and trade related subsidies.
3. In the field of energy :
The summit called for setting up a specific targets in terms of investments for Rural and Development of renewable or non-conventional energy sources by 2015.
4. Water and Sanitation :
It reaffirms the goal that there should be 50% reduction in the 2 billion population of the world that lochs portable water.
5. Biodiversity :
It reaffirms the need to reduce the loss of speices by 2015 without assigning any figure.
6. Good Governance :
It emphasised the need to fight – to promote democracy and to establish rule of law.

      • The greatest achievement of this summit was that it established Sustainable Development at par with other International issues such as peace and human rights and terrorism etc. However of vast differences in between North and South countries the conference could not put forth a solid programme for the implementation of goal that was set agenda 21 taken up during the Earth summit (RO). It also failed to develop new sources for raising funds for the implementation of various decision and goals taken up during the summit.

AGENDA 21

    • It was most important document concluded during the Earth summit. It is regarded as the blue print for the development of 21st Century. It major theme is to make 21st Century Environment friendly to make Earth a better place to live in more inhabitable.
    • It identifies poverty and underdevelopment as the greatest threats to environment. To fulfil the goals of Agenda 21, It was estimated that about 600 billion US $ will be required on annual basis. For this purpose, develop countries undertook to contribute atleast 0.7% of their GDP towards a planet protection fund known as Global Environment Facility. This facility was created at the latest of developing countries as they believe that though it is a common responsibility to save environment, it should be shouldered differentially that “Polluter Shall Pay”. This fund is kept at the disposal of IBRD (World Bank) where the appropriation out of this fund is based on weighted — voting principle the one who contributes more exercises more right over this fund. To make expenditure out of this fund democratic – one man one vote principle so that this fund can actually be utilised for the very purpose it was created.

DEFENSE RESEARCH

INTRODUCTION

Missile – a missile is a self-propelled guided weapon system. Missiles are developed under India’s defence program.

Classification:

  • Missiles are classified based on their range and from the place where is it hosted and targeted.

  • Missiles are also classified as Ballistic and Cruise missiles based on their technology.
  • Ballistic missiles–Ballistic missiles are the ones which by making use of its own propulsion system and travel through the atmosphere of the Earth, enters outer space and re-enters atmosphere at a particular angle where it encounters enormous heat upto 80000C which is sufficient enough to disintegrate the missile.
  • Cruise missiles – Cruise missiles are the ones which travel closer to the surface of the Earth or that of sea at low speed during the initial stage of the journey but it assumes high supersonic speed as it elevates itself as soon as it approaches the target.

INDIAN MISSILES

Agni Series

  • AGNI is a surface to surface intermediate range ballistic missile whose range can be extended up to 5000 kms.
    • i.AGNI I with 800 kms.
    • ii.AGNI II with 2500 kms.
    • iii.AGNI A-1 which is the shorter version with a range of 800 km.
    • iv.AGNI-III with a range of 3500 kms.
    • v.AGNI – IV with a range of 4000 kms.
    • vi.AGNI –V with a range of 8000 kms
    • vii. AGNI – VI is an ICBM with the range of 8000 – 10000kms.
  • Agni missile can deliver both nuclear as well as conventional warheads with a payload capacity of 1000 kg. It can be used for both defensive and offensive performances respectively.

Important of development Agni Missile (Significance)

  • The significance lies in their linkages with the development of nuclear weapons. They help in filling up in important gaps in delivery of nuclear weapon to be used as different. Agni Missiles provide a credible nuclear delivery system helping in making ‘’Credible Nuclear Difference” as per India’s Nuclear Doctrine.

PRITHVI

  • Prithvi is a short range, surface to surface tactical BM with a maxi range of 250 kms. It is based on liquid propulsion system. It is used as a tactical support weapon on battlefield as it can be used to destroyenemy’stroop concentration, their static military installations in the forms of military head quarters, oil fields, air base, harbours etc.

Prithvi IPrithvi II Prithvi III
1st deployed in 1996 Air force 250 km
Army 222/333
regiments
250 km 500 kg
150 km. 500 kg payload NAVY
Payload 1000 kg.2004 from
MML
DHANUSH
GPSGPS DHANUSH II
(500 km.)
MML – Mobile Missile Launcher

PRITHVI I:

  • Range of 150 kms with a payload capacity of 1000 kgs. It was 1st deployed in the year 1996 and has been specified for Army regiment (222/333).

PRITHVI II:

  • 250 kms payload capacity of 500 kgs.
  • For Air force, successfully test launched on 19 March 2004 from MML.

PRITHVI III:

  • It is also called as DHANUSH to be used by Indian Navy with a range of 250 kms& 500 kg. payload capacity. It can be launched from ship & submarine hitting land targets. It enables Navy to take part in further land wars.

DHANUSH II:

  • Improved version of Dhanush I, with a range of 500 km. is in the process of development. Indian Navy is also provided with 280 km rangewise missile from Russia – KLUB Missiles supplementing Dhanush and increasing fire power of Indian Navy.

TRISHUL:

  • Trishul isIndia’s most advanced quick reaction “Surface to Air missile” with a short range of 10 kms.

Trishul I Trishul II Trishul III
Surface-AirSurface-Surface Surface-Army
10 kms. 50 kms. 25 kms.
Air force Army NAVY

  • TRISHUL is a single stage solid fuel – with a payload capacity of 50 kgs. It was the 1st of the 5
    missiles of IGMDP to be toned in the year 1985. But it could not be deployed due to technical problems. The technical issues were resolved in the year 2003. As the development costs of this missile touched almost US$70 million, this missile has been shelved and would be used only as a technology demonstrator.

AKASH

  • It is a medium range ‘Surface to Air’ missile with the range of 30kms. Akash flies at supersonic speed, reaching around 2.5 Mach. Akash uses scramjet technology which enables it to have a greater payload ratio.It can deliver multiple warheads for attacking multiple targets simultaneously.The missile is supported by multi-target and
    multi-function phased array fire control radar called the ‘Rajendra radar’.Air Force has completed the test trials successfully It is in the process of development to be used by India Air force.

Limitations:

  • – Targets only at the front.
  • – speed 3mach (not enough)
  • – can only target enemy’s aircrafts not missile

Missiles outside IGMDP:

SURYA:

  • Surya is an intercontinental-range, surface-based, solid and liquid propellant ballistic missile with a range of 10000 kms. Suryais under developemtn and is the most ambitious project of DRDO and the information regarding this missile has been kept confidential by DRDO.

ASTRA:

  • ASTRA is an active radar homing beyond-visual-range air-to-air missile (BVRAAM) developed by the Defence Research and Development Organisation (DRDO), India. Astra is designed to be capable of engaging targets at varying range and altitudes allowing for engagement of both short-range targets (up to 20 km) and long-range targets (up to 80 km) using alternative propulsion modes. The missile was last tested on 18 March 2015 from a Su-30MKI fighter against a simulated live target. Astra uses a smokeless propulsion system.

MTCR:

  • The Missile Technology Control Regime is an informal and voluntary association of countries which share the goals of non-proliferation of unmanned delivery systems capable of delivering weapons of mass destruction(range 30 kms and payload capacity 300kg), and which seek to coordinate national export licensing efforts aimed at preventing their proliferation. The MTCR was originally established in 1987 by Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Since that time, the number of MTCR partners has increased to a total of thirty-four countries, all of which have equal standing within the Regime. India is not part of this regime.

BRAHMOS:

  • Only supersonic cruise missile
  • jointly developed by DRDO &Russia NPO (Joint act 1998)
  • 3 times the speed of sound
  • fire& forget principle and highly protective electronic jamming ability.
  • − Range 480 kms / payload 300 kg.
  • − “Brahmaputra’sfury & MOSKVA river’s grace”.
  • − Uses liquid propulsion in RAMJET technology.
  • − The range of these missilesis 280 kms with payload capacity of 300 km. It is highly accurate because of on board computer panel. This can enhance is speed to 3 times; so speed of sound on approaching target.
  • − It is ananti ship missile can be launched from ground, air sea on subsea even from MML with TATRA truck base.
  • − The land-launched, ship-launched and air launched versions are already in service, which makes India the only country with supersonic cruise missiles in their army, navy, and air force. A hypersonic version of the missile namely BrahMos-II is also presently under development with speed of Mach 7 to boost aerial fast strike capability. It is expected to be ready for testing by 2017.

KLUB MISSILE:

  • The Yekaterinburg-based Novator Design Bureau has developed a new cruise missile system designated Klub (NATO: SS-N-27 & SS-N-30) and is sometimes referred to as the Club, Biryuza and Alpha / Alfa. The Klub ASCM (anti-sub/ship cruise missile) has been designed to destroy submarine and surface vessels of all known types and also engage static/slow-moving targets, whose co-ordinates are known in advance, even if these targets are protected by active defences and electronic countermeasures. There are presently, two ‘known’ modifications of the system; Klub-S (for submarines) and Klub-N (for surface vessels).

AIRCRAFTS

  • SU30 / SU 30 MKI / SU 33 / LTA or SARAS /LCA orTejas
  • AJT (HAWK)
  • PTA (LAKSHYA)
  • NISHANT

SUKHOI 30:

  • It is an advanced fighter aircraft obtained from Russia with the range of 3000 kms. It is capable of delivering short, medium & long range missiles. Therefore, it can function as multimode aircraft which can be used in close combat situation either as an interceptor or as a bomber.it can participate in night warfare situation also. India was the 1st country to which Russian suppliedSukhoi aircrafts. They were inducted in Indian Air force in the year 1997.

SUKHOI 30 MKI:

  • It is an advanced version of SU 30 and has been duped specially to suit Indian conditions. It is much more agile than SU 30. Acquisition of SU30 & SU 30 MK1 will enable India to counter Pakistani attempts F 16 fighter Aircraft from USA. As per Indo Russian agreement on Dec 2000, 50 SU 30 MKI fighter aircrafts have been delivered and the remaining 140 SUKHOIMKI will be manufactured in India HAL, which has been given the license by Russian Authority.

SUKHOI – 33:

  • It is the naval version of SU 30 with short take off and landing facilities suitable for aircraft carriers to be purchased from Russia.

LCA – light combat Aircraft (TEJAS):

  • indigenously designed
  • GTRE – Gas Turbine Research Establishment – Bangalore
  • HOTAS – Hand on Throttle and stick
  • LCA or Tejas is a multimode light weight close combat supersonic fighter aircraft. Almost 70% of its components have been indigeniously developed. It has a range of 400 kms with a payload capacity of 4000kg.
  • 1. It has advanced technology like Fly by wire system
  • 2. Relax static stability
  • 3. Advanced Digital avionix
  • 4. Integrated Digital cockpit etc.
  • It can be used in close combat situations as an interceptor, fighter and bomber which hasmid air fuelling capacity. It can be used to jam enemy’s aircrafts & can take part in night warfars also.
  • − LCA uses Kaveri engines which are developed at GTRE Gas Turbine Research Established (Bangalore).
  • − LCA project was launched in the year 1983 by Aeronautical Development Agency (ADA), Bangalore.
  • − The maiden testflight of its 1st technology demonstrator (TD1) took place in 2001 Jan making India come in selected group of 8 nations which have their own fighter aircrafts & LCA once dropped will be world’s smallest fighter aircraft.
  • In the Phase 1 of its development 3 TD1, TD2 and 5 prototype vehicle have been manufactured in Phase II of this programme 2 LCA squadron have to be raised in Indian Airforce by the year 2007. So far, all the 3 versions of TEJAS ie TD1, TD2 & PU have completed 167 flights successfully of which 20 would cruse supersonic speed barrier.
  • LCA also utilises the concept of HOTAS i.e. Hands on Throttle and Stick which means in initial combat situation every control needed to be monitored is available within the range of fingers. LCA will be incorporated with ASTRA BeyondVisual Range Air to Air missile.

TA or SARAS:

  • It is indigenously designed and developed, civilian transport air craft which has got some defence role also.The project for development of LTA started in 1990s as a Joint Venue between India’s NAL&Russia’s Myasischave Design Bureau. It was developed by NAE, Bangalore and was successfully tested on 29th May 2004. It is a 14 seater aircraft and be extended to 18 seats. Its maximum payload capacity is 1232 kg. It has a range of 400 km and achieves a speed of 550 km/hr. It has got STOL facility enabling it to take off from semi prepared or unprepared runways, therefore making remote peripheral, inaccessible areas within reach can be used as a feeder airline service carrying passengers and cargo from remote areas. In defence, it can be used as air ambulance and can also be used patrolling coastal areas. Its use will open various unused airfields, in the country, for air travel and transportation. NAL received an order from the IAF to supply 15 Saras aircraft. Deliveries will begin in 2014 and conclude in 2017.

AJT HAWK:

  • In September 2003, Government of India signed an agreement with British Aerospace systems which provided 66 AJTs to Indian AirForce.Of these 24 will be provided in direct fly away condition and the remaining will be manufactured in India in 6 years. In the meantime trainee pilots will be trained in UK. The inclusion of AJT is to increase the level of skill in pilots who have to graduate directly from low speed low performance KIRAN / POLISH ISCRA basic jet trainer (BJT) aircrafts to high speed high performance front line MIG-21 FL fighter aircrafts without having a transitional trainer in between. This induction will therefore reduce the no of mid air crashes at least by pilot errors as nearly 54 MIG-21 fighter planes have gone down since January 2000 for which they are wrongly called as Flying coffins.

LAKSHYA: Pilotless Target Aircraft (PTA)

  • Lakshyais an Indian remotely piloted high speed target drone system developed by the Aeronautical Development Establishment (ADE) of DRDO with the range of 150 km. A variant Lakshya-1 is used to perform discreet aerial reconnaissance of battlefield and target acquisition.
  • Lakshya units are manufactured and overhauled at HAL’s Aircraft division, Bangalore. The Lakshya was formally inducted into the services by CAS AY Tipnis, on 9 November 2000 at Interim test range (ITR) Chandipur. On 9 May 2002, an upgraded version of the Laskhya featuring the new engine from HAL was flown from ITR Chandipur, bringing user trials to a close. On 6 November 2002, HAL announced that they had received an initial order for 25 Lakshya drones and that limited series production to satisfy the order for all three services had already begun. By 16 January 2003, the drone had completed over 100 flights.

NISHANTH: (Unmanned Air Vehicle Air vehicle or Remote piloted, vehicle)

  • Nishanth is also called as Falconor Remote piloted vehicle. It is a reusable aircraft which can be launched from anywhere as it needs no runway. It has been designed to perform discrete, arealreconnaissance of battle field. It is also used for acquiring and designating targets accurately so that targets can be engaged by country’s air force accurately with minimum fire power. For this UAV is used as a force multiplier. It has a pay load capacity of 45kg. Itcan fly for 5 hrs at a stretch achieving max speed of 150 km/hr. It is made up of special fibre reinforced glass, which enables it to avoid detection by enemies’ radar. It can survive electronic interference and function as a relay communication platform. It has been developed by joint venture between DRDO and ADA.It is commercially manufactured at HAL. It is incorporated in service since 2000.

TANKS

ARJUN – MBT of India:

  • It has been developed and designed by Combat Vehicle Research Establishment Centre (CVREC) of Heavy vehicles factory, Avadi, Chennai. Arjun tank uses advanced arm our known as ‘KANCHAN’ which is light in weight but high in accuracy. It has been provided with a 120mm heavy gun which can fire accurately even when Arjun tank is moving on an uneven terrain at high speed. In August 2004 1st batch of Arjuntank were deployed in 43rd regiment of Indian army. Three decades after conception of this project and nearly one decade after its continuous user trails by incorporating 58.5 tons heavy such a complex weapon. India has joined a select group of nations which has the capacity to design and develop such a complex weapon. Arjun is expected to replace T.55 & T.72 which form a major chunk of Indian Armoury. India has also acquired most sophisticated Russian T.90 tanks. According to defence deal of 2001, February Russia agreed to provide 310 T.90 tones to India of which 124 will be exported and remaining will be reassembled by Heavy vehicle factory Avadi. Russia has also agreed not to supply there tanks to PAK. But Pak has acquired T-30 from Ukraine and main battle tank of Pak is known as Al-Khalil. India rolled out T-90 tanks in Rajasthan sector of Indo-Pak boarder where these tanks have developed a technical snag in its most sophisticated and costliest imaging system which, suits cold weather of Europe rather than hot conditions of Rajasthan.

T-90:

  • India has also acquired most sophisticated Russian T.90 tanks. According to defence deal of 2001, February Russia agreed to provide 310 T.90 tones to India of which 124 will be exported and remaining will be reassembled by Heavy vehicle factory Avadi. Russia has also agreed not to supply these tanks to PAK. But Pak has acquired T-30 from Ukraine and main battle tank of Pak is known as Al-Khalil. India rolled out T-90 tanks in Rajasthan sector of Indo-Pak border where these tanks have developed a technical snag in its most sophisticated and costliest imaging system which suits cold weather of Europe rather than hot conditions of Rajasthan.

PINAKA

  • It is a multi-barrel Rocket launcher which can launch 12 solid propellant-based rockets simultaneously with the range about 39kms. PINAKA can also launch variety of warheads in this sophisticated rocket launcher / facility.
  • i.quick reaction time
  • ii.high accuracy
  • iii.excellent mobile features
  • It has been developed as ArmyResearch & Development Establishment (Pune).

SCRAMJET OR RAMJET TECHNOLOGY

  • These are air breathing engines that suck up and store oxygen needed for combustion as the missile or rocket climbs through the atmosphere. Therefore this technology enhances the pay load capacity and reduces the cost.But Scramjet / Ramjet based missile or aircraft have to travel a longer horizontal distance in Earth’s atmosphere to suck up and store enough oxygen which could be utilised later on in outer space journey. Ramjet engines are lighter and simpler than turbojet engines which generate high pressure required for propulsion by ramming or pressing air forcefully into the combustor using forward speed of the vehicle which is generally 2.5 times the speed of sound. The air which enters in combines with fuel, ignites it and releases in the form of air at supersonic speed as exhaust flames.

AWACS: Air borne early warning and control system.

  • India has just taken up development of the Rs 6,000 crore Airborne Warning and Control System (AWACS) that will have the capability to penetrate “longer distances” enemy territory by way of radars and electronic warfare systems without venturing into the region physically.

PHALCON

  • Phased array of L band conformal Radar (Israel).
  • It refers to highly sophisticated airborne radar which is on move in sky like moving eyes. Such a radar will provide an advanced warning regarding intrusion of airspace by enemies air craft or missile. It will also be used to acquire and designate targets accurately for their effective engagement with minimum fire power and hence acts as a force multiplier and becomes an essential component of Air defence force of the country. In 1998, DRDO launched a
    programme ‘AIRAWAT’ to develop its own AWACS. But it could only succeed to make an airborne surveillance platform (ASP) which is a modest version of AWACS. In the meantime India signed 2.16 deal with Israel in July 2001 according to which Israel has to provide 3 PHALCON AWACS, ARROW SSABM, GREENPINE AND AEROSTAT ground based radars, SEARCHER and HERCN UAVs.

USA objected to this deal stating that it would disturb the military equilibrium in Indian subcontinent. But in 2002 it allowed the deal to be executed without Arrow missiles.. PHALCON will be able to track hundred targets simultaneously and provide an advanced warning ½ hour before.

STEALTH TECHNOLOGY

  • It is a technology which results in making aircrafts or missiles less or not visible to Radars. It involves superior design of aircraft, advanced construction material and use of special coating which result in either absorbing or reflecting less electro magnetic radiation beamed by Radar. These aircraft / missile is visible to naked eye. To make this fool proof special chameleon coating is in the process of development which will enable aircrafts to change their colour to blend with the back ground. Their surface can be made rugged resulting in irregular reflection which will create a shimmering effect. More ever, special photo Chromic and Electro Chromic devices which will function like LED are in the process of development making aircrafts or missiles further invisible. USA used this technology in their B2 Bomber aircraft in form of a special ceramic paint coating mixed with silver oxide microscopic crystals also known as cenopheres. DRDO also claims to have developed a special paint coating which reduces the visibility to at least 70%.

SAMYUKTA (ELECTRONIC WARFARE PROJECT): IEWS

  • According to DRDO, Samyukta in India’s largest Integrated electronic warfare system developed as a joint venture of DRDL and other scientific organisation. It has already been deployed in army. Its IAF version will be tempest and Navar version will be Sangraha. Mounted on a mobile ground based vehicle, Samyukta will mainly used for direction finding Position fixing, jamming electronic equipments and for the purpose of Reconnaissance. It will be able to identify, search locate detect and intercept both ground based and airborne electronic threats in form of communication and non-communication signals of wide frequency range. It has a range of 70-150 km. to defect these signals in forward edge battle area from where these signals will be transmitted to master control centres through various transmitting station.

CIVILIAN USE OF MILITARY TECHNOLOGY

  • Apart from the use of missile components in defence and space research they can also be used in biomedical sciences DRDL, UYD and NIMS, ND have developed wide variety of missile composites which are high strength materials but are very light in nature. They have developed Flow reaction orthosis which is a light weight – almost 10times lighter than conventional callipers (300 gms).They are made from same component used for making cone of Agni missile. The carbon-carbon used for making heat shield of Agni missile can be used to manufacture tilting belittle heart discs to replace defective heart valves. Same material can also be used to improve quality of fracture fixation plates which are used in hip bone surgery.
  • The advanced chips used in making Application specific integrated circuits (ASIC) in Prithvi and Agni Missiles can be used in making pace maker. The on board telemetry system used in various missiles to monitor functioning of various substems can also be used to monitor patients more effectively in ICU at low cost. The Data processing technology used in LCA can be used to make low cost CT scan to defect cancer timely. Bleated heart discs to replace defective heart valves. Same material can also be used to improve quality of fracture fixation plates which are used in hip bone surgery.

SPACE PROGRAMME – PAST YEAR QUESTIONS

  • 1.What is meant by a “stealth aircraft”? Mention two “Stealth technological techniques” used in such as aircraft. (89/II/8f(C)/3)
  • 2.Trace the progress of India’s Space Research Programmes?
    What are its significant achievements? (91/II/7a/20)
  • 3.Discuss briefly the importance of the cryogenic engine for India’s space programme. (92/II/7a/20)
  • 4.What is a leap second? (92/II/8b(C)/3)
  • 5.What is the advantage of putting statellite in the geosynchronous orbit? (92/II/8e(C)/3)
  • 6.What is remote sensing? Describe the status of remote sensing in India. (93/II/6c/15)
  • 7.What are jet streams? (9/II/8d(C)/3)
  • 8.What is Talsur? (94/II/8b(C)/3)
  • 9. What is ‘Shoemaker-Levy9’? Why was it in the news recently? (94/II/8e(C)/3)
  • 10. What is PSLV? Describe its significance for India’s space programme. (95/II/7b/20)
  • 11. What are VSATs? What are they used for? (95/II/8b(C)/3)
  • 12. Describe how India’s space programme has helped in its socio-economic development. (96/II/3a/40)
  • 13. Why does a lunar eclipse occur only on a fun moon? (96/II/8e(C)/3)
  • 14. Why is Agni Project Important for India? (97/II/3a/40)
  • 15. What is the difference between a comet and a meteor? (97/II/8b(C)/3)
  • 16. What is remote sensing? What are its uses especially in the Indian context. (About 250 words) (98/II/3a/40)
  • 17. What new type jof satellite is proposed to be inducted for bolstering surveillance on India’s border? How does this type of satellite compare with existing IRS satellites? (99/I/6a/10)
  • 18. Answer the following: (about 25 words each):
  • (a) What is ‘Swatch of no ground’?
  • (b) From where was the most advanced commercial satellite of India INSAT 2E launched?
  • (c) What is Global Positioning System (G.P.S)? (99/II/8/3 each)
  • 19.What do the GMRT stand for? (99/II/10d(ii)/1)
  • 20. Where is Vikram Sarabhai Space Centre Located? (99/II/10e(iii)/1)
  • 21. What is the significance of the geostationary orbit? What would happen if it becomes too crowded? (00/II/10a/30)
  • 22.Discuss the significances of GSLV in space research. (01/I/10b/30)
  • 23.Determine the utility of Direct to Home in broadcasting system. (01/I/11a/10)
  • 24.What does the solar system consist of? Discuss the motion of the entire solar system as a whole and also the motion of most of the bodies forming the solar system. (03/II/11a/15)
  • 25.In which year and by which countries was International Space Station (ISS) launched? How many countries are participating in this program? What are the unique studies being made in the station which could not be made
    so accurately on the earth? (03/II/11b/15)
  • 26. Detail the salient features of project ‘Anthareeksha’. (05/II/7a/15)
  • 27.What do you know about Indian National Satellite Systems? Describe its important features. (250 words) (08/II/10b/30)
  • 28. What is the ‘Hubble Space Telescope’? How many Servicing Missions (SMs) have been conducted for it? (09/II/8d/15)
  • 29. Write brief note in about 30 words: Extra Vehicular Activity (EVA). (09/II/10f/3)
  • 30. Write about NNRMS. (09/I/4d/3)
  • 31. Write about GAGAN Project. (09/I/4f/3)

DEFENCE TECHNOLOGY – PAST YEAR QUESTIONS

  • 1.Give the names of three missiles developed by India under the Integrated Guided Missile Development Programme. briefly mentioin their capabilities. (89/II/8a(C)/3)
  • 2.What are binary Chemical weapons? (91/II/8a(C)/3)
  • 3.What are the salient features of India’s missile development programme. (92/II/7d/20)
  • 4.Give an account of the achievements of Indian defence scientists in technology development. (93/II/7a/20)
  • 5.What do the following stand for:
  • (i)ANURAG

    (ii)HVDC

    (iii)GMRT

  • 6.What is VIKAS engine? What is being used for? (93/II/8e(C)/3)
  • 7.What was the controversy about ‘Prithvi’? (93/II/8f(C)/3)
  • 8.Why is Agni Project important for India? (97/1/7g/2)
  • 9.How does the development of Pinaka benefit India. (98/II/7b/20)
  • 10.What do the ICMR stand for? (98/II/8d(ii)(C)/1)
  • 11.What is a cryogenic engine? Discuss its significance in India’s space programme. (01/II/10a/30)
  • 12.What is Stealth Technology (125 words) (07/I/11a/10)
  • 13.Discuss the missile technology initiatives undertaken by India. (150 words) (07/II/11c/15)
  • 14.Write about India’s L.C.A. (Tejas). (08/II/2e/2)
  • 15.Write brief note on Nuclear Submarine‘Arihant.’ (09/II/2d/5)
  • 16.Write brief note in about 30 words: The ‘P-IA Poseidon’. (09/II/10d/3)
  • 17.The Kaveri K – 10 aero-engine

SPACE SCIENCE

INTRODUCTION

  • Space is a 3-dimensional boundless extent within which matter is physically extended and the objects and events that occur have position and direction relative to each other.

Outer Space

  • It is that part of the space that lie beyond Earth and its atmosphere. In 1929 U.S based astronomers Edwin Hubble proposed the ever- exploding phenomenon of universe. It was a hot mass of super hot and super dense substances which exploded and got fragmented with a big bang to result in expanding of universe. Galaxies are huge congregation of stars held together by force of gravity. The Milky way is our home Gallexy

SPACE RESEARCH

  • It Involves dual-use tech, which means tech that has its application in both Civilian and defence sector. It has both Political    and     Strategic significance so is developed indigenously. Indian Space Research also involves dual use technology that is used for both civilian and defence sector. Six countries which possess such technology are Russia, U.S.A EU, China, Japan and Israel.

 Indian Space Research Programme

  • Driven by the vision of Vikam sarabhi, it aims to promote the development and application of Space science and technology for social- economic benefit of the country.

 Objectives

  • To utilise the outer space for peaceful purpose
  • To establish operational space services in a self- reliable manner.
  • Indian Space  Research programme primarily involves designing and fabrication of satellites and development of launch vehicles.

 Organisational Set-up

  • Indian National Committee for Space Research (INCOSR) came into being in 1962. The Indian Space programme         was institutionalised in Nov1969 with the formation of Indian Space Research  Department or Space was formed in1972 and ISRO was brought under it. Dept. of Space is part of ministry science and Technology is the nodal agency in the field of space in India, formulating and providing polices involving space research. It coordinates the activities of various institutions that are involved in space research and extend financial assistance for conducting space research.
  • ISRO satellite centre,Bangalore
  • Vikram Sarabhai satellite centre, Thumba Thiruvananthapuram (VSSC)
  • Sathish Dhawan Space Centre, Sriharikota, A.P (SDSC)
  • Space Application Centre, Ahmedabad.

ISRO satellite centre Bangalore

  • ISRO Satellite Centre (ISAC), Bengaluru, is the lead centre of ISRO for design, development, fabrication and testing of all Indian made satellites. As a sequel to its mandate of spacecraft realisation, the Centre is engaged in the development of cutting-edge technologies of relevance to its satellite building activities and setting up of infrastructure for design, development, fabrication and testing of spacecraft. Over the past four and a half decades, ISAC has developed intellectual capital in a wide spectrum of knowledge domains of spacecraft technology.
  • ISRO Satellite Integration and Test Establishment (ISITE) is equipped with the state-of-the-art clean room facilities for spacecraft   integration   and   test facilities   including   a   6.5   Metre thermo vacuum chamber, 29 Ton vibration        facility,        Compact Antenna      Test      Facility      and Acoustic  Test  Facility  under  one roof.  Assembly,  Integration  and Testing    of    all    Communication and    Navigation    Spacecraft    is carried out at ISITE.
  • A dedicated facility for the productionisation of standardised subsystems is also established at ISITE. Since its inception in 1972, the centre has built 72 spacecraft varying from scientific/experimental satellites to the state-of-art operational satellites in the areas of Communication, Navigation, Remote sensing and Space Science.

VSSC Thiruvananthapuram

  • Vikram Sarabhai Space Centre (VSSC) at Thiruvananthapuram is the lead centre for the design and development of launch vehicle technologies for the Indian Space Programme. The major programmes at VSSC include: Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV) and Rohini Sounding Rockets as well as the development of Geo- Synchronous Satellite Launch Vehicle
  • (GSLV) – Mk III (LVM-III), reusable launch vehicles, advanced technology vehicles, airbreathing propulsion and critical technologies towards human
  • The Centre pursues active research and development and has developed core competence in various disciplines including aeronautics, avionics, materials, mechanisms, vehicle integration, chemicals, propulsion, space ordnance, structures, space physics and systems reliability. The Centre undertakes crucial responsibilities of design, manufacturing, analysis, development and testing related to the realisation of subsystems for the different missions. These are sustained by activities towards programme planning & evaluation, technology transfer, industry coordination, human resources development and safety. Planning, execution and maintenance of all civil works related to the Centre is also carries out. The Centre depends on administrative and auxiliary services for support VSSC has extension Centres at Valiamala housing major facilities of mechanisms, vehicle integration and testing and at Vattiyoorkavu for the development of composites. The Ammonium Perchlorate Experimental Plant (APEP) has been set up by VSSC at Aluva near Kochi.

(SHAR) Sriharikota

  • It is the satellite launching station in the country. It was earlier known as Sriharikota High Altitude Range (SHAR) and renamed Sathish Dhawan Space Centre in September 2002. Sathish Dhawan was the former chairman of ISRO also worked as secretary in the Dept of space
  • SDSC at Sriharikota, with two launch pads, is the main launch centre of ISRO that carries out launch operations. The mandate for the centre is (i) to produce solid propellant boosters for the launch vehicle programmes of ISRO (ii) to provide the infrastructure for qualifying various subsystems and solid rocket motors and carrying out the necessary tests (iii) to provide launch base infrastructure and (iv) for assembly, integration and launching of satellites and launch vehicles.
  • The Centre is augmenting the infrastructure to meet the requirements of increased launch frequency of 5-6 launches per year. The present Vehicle Assembly Building (VAB) is being used for integration of PSLV/GSLV/GSLV Mk-III (LVM3) launch vehicles for launching from the Second Launch pad. Second Vehicle Assembly Building (SVAB), integrated with existing rail track leading to Second Launch Pad, is planned to augment the launch infrastructure and provide redundancy to existing critical infrastructure.      SDSC      has      a separate launch pad for launching the  sounding  rockets.  The  centre provides    the    necessary    launch base  infrastructure  for  sounding rockets of ISRO and for assembly, integration       and       launch       of sounding   rockets   and   payloads. Thus   2nd     launch   pad   is   more sophisticated    than    earlier    one since   on   this   launch   pad   the launch vehicle does not require to be  anchored  as  it  was  used  to  be earlier.   In   case   of   an   impeding storm  the  launch  vehicle  can  be easily moved to a safe place.  More over, this launch pad can be easily prepared it would enable ISRO to launch satellite frequently.

Space Application centre Ahmadabad

  • It is responsible for conceptualisation, planning and execution of space research projects. Space Applications Centre (SAC) at Ahmedabad is a unique centre dealing with a wide variety of activities from payload developments to societal applications, thereby creating a synergy of technology, science and societal applications. The centre is responsible for the development, realisation and qualification of communication, navigation, earth observation and planetary payloads and related data processing and ground systems in the areas of communications, broadcasting, remote sensing, disaster monitoring/mitigation, etc. It is playing an important role in harnessing space technologies for a wide variety of applications for societal benefits.
  • In order to carry out the above tasks, SAC has highly sophisticated payload integration laboratories, electronic and mechanical fabrication facilities, environmental test facilities, systems reliability/assurance group, image processing and analysis facilities, project management support group and a well-stocked library. SAC has also put adequate emphasis on and practicing outsourcing and indigenous development of technology and Vendors

Liquid         Propulsion         Systems Centre (LPSC)

  • Liquid Propulsion Systems Centre (LPSC) is the centre of excellence in the area of Liquid and Cryogenic Propulsion for ISRO’s Launch Vehicle and Spacecraft programmes. The activities are spread across Valiamala / Thiruvananthapuram and Bengaluru centres

 

  • LPSC Valiamala is the Headquarters and is responsible for R & D, system design / engineering, delivery of liquid and cryogenic propulsion systems, control components & modules and control power plants. LPSC Bengaluru focuses on the design and development of satellite propulsion systems and production of transducers/sensors.

ISRO Propulsion Complex (IPRC)

  • The activities carried out at IPRC, Mahendragiri are: assembly,integration and testing of earth storable propellant engines, cryogenic engines and stages for launch vehicles; high altitude testing of upper stage engines and spacecraft thrusters as well as testing of its sub systems; production and supply of Cryogenic propellants for Indian Cryogenic rocket programmes, etc. IPRC is responsible for the supply of Storable Liquid Propellants for ISRO’s launch vehicles   and                 satellite programmes. IPRC delivers quality products to meet the zero defect demand of ISRO space programme ensuring high standards of safety and reliability. It also carries out Research & Development (R&D) and Technology                  Development Programmes
  • (TDP) towards continual improvement of its contribution to Indian space Programme

Antrix Corporation Limited

  • Antrix Corporation Limited, Bengaluru is a wholly owned Government of India Company under the administrative control of the Department of Antrix  Corporation  Limited  was incorporated  in  September  1992 as   a   private   limited   company owned by Government of India as a   Marketing   arm   of   ISRO   for promotion       and       commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO. Another major objective is to facilitate development of space related industrial capabilities in India.
  • As the commercial and marketing arm of ISRO, Antrix is engaged in providing Space products and services to international customers worldwide. With fully equipped state-of-the-art facilities, Antrix provides end-to- end solution for many of the space
  • products, ranging from supply of hardware and software including simple subsystems to a complex spacecraft, for varied applications covering communications, earth observation and scientific missions; space related services including remote sensing data service, Transponder lease service; Launch services through India’s operational launch vehicle PSLV; Mission support services; and a host of consultancy and training Services

TYPES OF ORBITS Near Earth orbit

  • It lies at a height of about 400km above the surface of Earth. Experimental satellites experience maximum gravitation force, so burns more fuel and lifespan is about two years. The 1st artificial satellite was launched in 1957 from Russia named Sputnik-I. Various other experimental satellites launched by India in NEO are Aryabhatta, Bhaskara, Rohini

Low Earth orbit

  • These are located at a height of 900km from the Earth’s surface. It is the circular orbit in which operational remote sensing satellites are launched with the help of polar satellite launch vehicles which inject these satellites at a velocity of 7.5 km/sec. The life span of satellite is generally 7-10 years. India has launched Indian Remote Sensing Satellite series into LEO. Technology Experimental Satellites (TES) has launched by PSLV C-3 in 2001 was the only experimental satellite launched in this orbit by India.

Geostationary orbit

  • It is the height of about 30,000km from the equator in this orbit; geostationary satellites are launches by GSLV at an injection velocity of 10 km/sec. Geostationary satellites follow circular orbit from West to East above the Equator at the same speed as that of Earth’s surface. Thus a geostationary satellite is synchronised in its orbit around the Earth with the rotation of Earth on its axis. Geostationary orbit is the most crowded of all orbits around the Earth as they have to be over equator only. At the height of 36,000km geostationary satellite surveys nearly 1/3rd of the Earth’s surface so there is a need of three geostationary satellites to cover the entire surfaces of Earth

Transfer Orbit

  • It is an intermediate orbit into which a satellite is released from which the satellite will subsequently lift itself up by making use of its propulsion system.

Polar Transfer orbit

  • It is an elliptical orbit at height 100km below LEO/ polar orbit. Remote sensing satellite launched into polar Transfer orbit first then using its own propulsion system it lifts itself to the designated
  • Polar orbit is an orbit in which satellite moves pole to pole thus covers entire surface of Earth at a given period of time

Geostationary Transfer orbit

  • It lies at a height of 2000km below the Geostationary orbit, Geostationary satellite are first launched in Geo- stationary transfer  orbit  then lifts themselves to Geo- stationary orbit using their own propulsion system.

Satellite Launching Stations

They are generally located on the East Coast – as close as possible to the Equator because Eastern side of East Coast – Water body. (E.g.) Cape – in S.E. coast, in Florida, Kooroe in N.E. Coast of French Guiana, South America.

  • As the Earth rotates from West to East, the launch vehicle also Move in the same direction, this launching a satellite towards the east from a site on the equator means the Earth’s rotation.
  • Generally, in the eastern side of west coast final velocity lays landmarks inhabited by people occupied by properties. In case of a mishap occurs and if launch vehicle is launched from launching station of west coast, it may result in loss of life and destruction of property
  • There are close to equator, because radius of Earth bulges out nearly 21.5 km. Moreover gravitational pull of Earth is very less for these satellites which can be easily launched without attractive pull

TYPES OF SATELLITES

  • Remote sensing satellites

    • Space based Earth observation system able to collect info. about any object on / closer Earth’s surface by radiating, reflecting or scattering of radiation by the object. – Remote sensing satellites is able to provide a synoptic view of large areas of Earth and collect, distribute Multiple data                      including ecological,                     geographical, geological and meteorological data within a short period of time. – RS satellites is a key player in countries planning infrastructure development and forms integral part of country’s natural and renewable resources management by supplying data to Natural Resource Management System in Bangalore
    • RS Satellite data is 15 times cheaper, far more accurate and systematic. National Remote sensing agency, Hyderabad is the nodal agency for reception, processing and spread of data from All India RS satellites like CARTOSAT I, II Resource sat I. As per the RS data policy, National RS Agency is the national acquisition / distribution agency for all satellite data within India.

 Fields of Application of RS Data:

Data from RS Satellites can be used as

  • In field of agriculture, it can help in assessment of net crop area, crop protection forecast extent of disease application in crops, availability of water for irrigation in difference reservoirs and movement of pests and locusts. PC has divided the country into 15 Agro climatic zones to increase agricultural productivity using remote sensing data obtained from IRS-IA & IRS-ID.
  • In the field of forestry, it can help in assessment of extent of forest cover, distribution of animal and plant species, migration of animals, forest fires and their management.
  • In the field of coastal studies and fisheries, it can help locating shoals of fish their better harvesting.
  • In the field of weather forecasting, RS data can help in accurate, short-term weather forecasting.
  • In the field of Planning & Management, RS data can be used for Urban Planning, flood- prone area identification and consequent suggestion for mitigation
  • RS satellite data can help in strengthening Military Potential RS satellites having less than 5m resolution power can help in tracking troop movement and also help in locating static Military installations (RS) Military – Air base and naval base. IKONOS   launched   in   Sep.   1994   by USA.        Indian  CARTOSAT      –          2,         2A having  resolution  power  of  less  than 1m.

9.4.1.2            Indian Space System:

  • ISRO has established 2 major space systems
    • Indian National Satellite System (INSAT) for Communication, TV Broad casting and Meteorological services.
    • Geo stationary satellites
    • Indian Remove sensing satellite system, for resource monitoring and ISRO   has   developed   2   SLV   –   PSLV &GSLV     to     place     Indian     Remote Sensing  Satellites  and  Indian  National Satellite in their required orbits.

9.4.1.3            Indian Remote Sensing Satellite System:

  • IRS satellites are series of Earth observation Satellites build, launched and maintained by ISRO as part of Indian Space Programme. It is the largest constellation of RS Satellites for civilian use in operation today in the world. Data from RS Satellites are used for various applications of resource survey and management and the National Natural Resources Management System.
  • The initial version of IRS satellites were named ad 1-A, 1-B, 1-C, 1-D and later versions are named based on the area of application including Oceansat, ResourceSat and Cartosat
  • With the launch of RISAT-1 the constellation now has 12 Satellites in operation, all these are places in Polar Sun Synchronous orbits & provide data in a variety of spatial, spectral and temporal resolutions to enable several applications to be undertaken relevant to the national Development

Re-Entry Technology:

  • It demands re-entry of fast- moving satellite (20,000 km/hr space) in Earth’s atmosphere at an appropriate angle as friction with Earth’s atmosphere generates a scorching heat of the intensity of about 20000 degree Celsius. Thus, satellite was provided with carbon phenolic materials and silica tiles on its outer surface to protect it from the heat.

Re-usable   Launch Vehicle:

  • It is an amalgamation of a rocket in an aircraft. It will be launched from a space station to go into space to either place / repair a satellite in orbit and then like an aircraft, it’ll glide back to land on an air strip on Earth’s surface. Therefore, it can be used many times.

Significance:

  • At present, the cost of launching a satellite is $13,500 per kg. 75% of it is utilised in making rocket engines of the launch vehicle which sequencially fall into sea and could not be recovered. Because of increasing cost of launching satellite, ISRO is working on a re-usable launch vehicle and demonstrated successfully by Space Capsule Recovery Expt. The acquiring of this building a Re-useable Launch Vehicle will significantly decrease the cost of launching the satellite  to $  1000 /  kg. Payload. With  the  success  of  SRE  –  ISRO is  about  to  come  with  Reusable Launch   vehicle   (A   Technology Demonstrator) RL – (TD), by end of 2008. India is also planning to develop  nuclear  propulsion  and even electronic propulsion to use in its launch vehicle.

 Geo-Stationery Satellites:

  • Multi purpose satellites launched at the height of 35876 km from the Equator by GSLV. In its orbit, geo- synchronous satellite covers a circular path moving from W to E at the same speed as that of Earth’s rotation. Therefore, Geo- synchronous satellites appear to be stationery from Earth’s Surface and hence called Geo- Stationery Satellite.
  • Geo-synchronous satellite confers the following abilities to a country.
  • Tele communication
  • TV Broad casting
  • Weather forecasting
  • Disaster forewarning
  • Data Relaying
  • Search and Reserve operations
  • In data relaying for large volumes of data is transferred at high speed enabling establishment of internet services, networking of banks, stock markets and other financial
  • In Disaster forewarning, Geo- synchronous satellite intimates various disaster forewarning centres located along the – of the country providing information regarding formation of a trough its development in to a depression and then, formation of a cyclonic storm. Therefore, it provides accurate information of speed and direction of cyclonic storm preventing destruction of property and loss of life
  • Under search and rescue formations, satellite on the basis of distressed signals received provides accurate information regarding latitudes, longitude and altitudes of the place from where distressed signals originated and – helping in rescuing. So Geo-synchronous satellite is an eye in the sky

LAUNCH VEHICLES

  • LV is a rocket used to carry a payload from the Earth’s surface into outer space. It helps in placing either an experimental / operational RS or Geo Synchronous Satellite in its designated

 Important Components of a Launch Vehicle:

AcceleroMeter:

  • Monitors the acceleration of the Launch Vehicle right from the time of its lift-off.

Gyroscope:

  • Considered as the eye and the ear of the Launch Vehicle as it helps in determining the position and velocity of the Launch Vehicle. It also provides information regarding orientation of Launch Vehicle.

C-Loop System :

  • Is a combination of computers present on board i.e. onboard computer panel system which on the basis of the data provided by accelerometer and gyroscope, guides the vehicle rights from its lift-off and it also controls the orientation of the vehicle in its entire three axes.

Propellant:

  • A mixture of fuel and oxidiser. 50% of the weight of Launch Vehicle is the propellant 85% of the propellant is oxidiser. Therefore, payload on the Launch Vehicle is hardly a fraction of weight and Launch Vehicle fuel can be solid / liquid

Solid Fuel:

  • Less Corrosive, so has longer shelf life and can be easily transported. Burns rapidly generating greater thrust which is essential for easy lift-off of the Launch Vehicle by over coming gravitational force and therefore 1st stage of Launch Vehicle is also solid fuel based

Disadvantages:

  • It reduces payload fraction of LV as the solid fuel is bulky
  • Solid fuel based engine, once shut off cannot           be        re-started      andtherefore, it does not provide enough flexibility to the Launch Vehicle to satellite in the pre- assigned orbit.
  • (E.g.) Hydroxyl Terminated Poly Buta diene (HTPB)

Liquid Fuel:

  • Liquid Fuel based engines can be restarted once shut-off providing greater flexibility to Manouvere the satellite. It is more compact, occupies less space and has got greater payload fraction

Disadvantages:

  • Corrosive in nature so can’t be stored for long time in fewer temps. It is also difficult to be transported.

  INDIA’S LAUNCH VEHICLES

SLV:

    • It is 4-stage with all solid fuel based. It was successfully tested in July, 1 Payload capacity 40-50. It can place experimental satellite in Near Earth Orbit. Its successful launch conferred on India, ability to develop short and intermediate        range       ballistic missile.

 ASLV:

  • Augmented Satellite Launch Vehicle.
  • Successfully test fired in May, 1992. It is 5-stage rocket, all solid fuel based. It can lift a satellite of up to 150 Kg. to NEO. H helped in placing ROHINI and SROSS (stretched Rohini Satellite Series) in NEO

 PSLV:

  • It is an expandable Launch Vehicle operated by ISRO. It was developed to allow India to launch its IRS satellites. It is 4- stage Launch Vehicle in which the 1st and 3rd stages used solid fuel and 2 and 4th stage used liquid fuel

1st Stage – HTPB fuel:

  • Motor case is made of an advanced allay of Iron and Nickel known as MARAGING Steel. This alloy has reduced the weight of 1ststage to 1/3rd.

2NDStage:

  • Liquid fuel based
  • Used in Vihar Engine
  • Unsymmetrical dimethyl Hydrazine as fuel
  • Nitrogen Oxide as Oxidiser.

3rdStage:

  • Solid fuel based, made up of Kevlar Fibre, Special alloy of Iron and Nickel which is light weight, strongly reducing the weight of 3rd

 

4th Stage:

  • Liquid fuel based hydrazine and mixed oxides Nitrogen as Oxidiser.
  • PSLV has conferred upon India, the ability to develop inter- continental Ballistic Missile.

   GSLV:

  • It is the 4th generation LV designated for launch of geo- stationary satellites. It is 3-stage LV, 49m tall

1stStage:

  • GS-1 solid propellant

2nd Stage:

  • GS – 2 Liquid propellants

3rdStage:

  • GS – 3. Cryogenic stage with re- startable engine.

Cryogenic Stage :

  • Uses Liquid Hydrogen at -253oC and Liquid Oxygen at -183oC as oxidiser.
  • A cryogenic engine is more efficient and gives 1½ times move thrust to every kg of propellant burnt than solid / liquid propellant, while weighing 50% less thereby enhancing the payload capacity. India has been acquiring the Cryogenic engine and technology from Russian Space Agency.
  • India has been developing Geo- Synchronous Satellite Launch Vehicle in the form of 3 generations.
  • 1st Generation – Geo- Synchronous Satellite Launch Vehicle have been developed from   Geo-Synchronous   Satellite Launch Vehicle Mark-I. GSLV-D1 which   placed   GSAT-1   in   April 2001.   GSLV-D2 PLACED GSAT-2  in  May,  2003.  It  is  capable  of launching   1.5   ton  (1500  kg)   in geo-stationery transfer orbit.
  • 2nd Generation – Geo- Synchronous Satellite Launch Vehicle Mark – II. This variant can carry 2.5 tonnes weight into Geo-stationary Transfer Orbit. The 2 operational flight of GSLV Mark-II have been tested
  • GSLV – F01: 1SToperational flight conducted on September 28, 2004 placing EDUSAT
  • GSLV –             F02: Unsuccessful in launching INSAT –Both GSLV Mark I & II used Cryogenic engine tech imported from  Russia

3rd Generation GSLV Mark III

  • Under development at VSSC, since October 2002, it will be the nearest and most powerful Launch   Vehicle   of   India   which could place 4 to 5 tonnes of Geo- Stationary     Satellites     in     Geo- Stationary  Transfer  orbit  and  up to  10  tonnes  of  RS   satellite  in LEO. Initially India used Russian cryogenic  engines,  but  in  August 04,     2008,     India     successfully tested    indigenously     developed cryogenic   engine   for   8   min.   at Liquid        Propulsion        Centre, Mahendragiri,  Tamil  Nadu  as  a part   of   Cryogenic   Upper   Stage Project.  This  successful  test  is  a major  milestone  as  it  will  enable India   to   launch   about   4   ton. heavy  Geo-Stationary  Satellite  in Geo Stationary Orbit.

Significance of Cryogenic technology

  • It minimises the space occupied by fuel
  • It enhances the number of combustion of fuel
  • Cryogenic technology enables the rocket to carry heavier payloads without any increase in size of rockets. Indian space agency is also looking at semi-cryogenic fuel which will use liquid O2 as oxidiser  and  kerosene  replacing liquid H2  as the fuel. It is aviation grade    kerosene    highly    refined paraffin   which   will   reduce   the cost drastically. Cryogenic means low    temperature.    The    rocket engine  that  makes  use  of  liquid fuel  and  extremely  low  temp  is called cryogenic engine.

INDIA’S MOON MISSION

  • Chandrayaan-I
    • ISRO launched its ambitious mission to the moon by an unmanned lunar spacecraft Chandrayaan-I with the help of PSLV-C11 on November 2 Chandrayaan-I orbits the surface of moon from the height of 100km help in understanding physical and                            chemical composition of moon and its crator history.
    • Hyper spectral imager will perform mineralogical mapping and Terrain mapping camera with 5m resolution use to produce high resolution map of the moon. Lunar Laser ranging instrument will determine the surface topography High energy x-ray spectrometer will help in radioactive elements to be probed. Moon impact probe will search for surface water in the form of ice on the moon.

Chandrayaan -II

  • ISRO is planning a 2nd version of Chandrayaan named Chandrayaan-II under which a motorised rover will land on the moon 2015 as part of the 2ndChandrayaan mission. The rover will be displayed to move on wheels on the lunar surface and picks up samples of soil, rocks do insitu chemical analysis sent the data to the mother spacecraft Chandrayaan -II which will be orbiting above which in turn will transmit the data to the ground. Chandrayaan- II will consist of the spacecraft itself a landing platform with the moon rover. The platform with the rover will detach from the orbiter after the spacecraft reaches its orbit above the moon land on lunar soil. Then the rover  will roll out of the moon

GLOBAL POSITIONING

SYSTEM

  • It is a satellite based radio navigation system that gives accurate information to its users about the latitude, longitude and altitude on Earth’s surface helping aircraft ships submarines missile tanks, Artillery guns marking their   positions accurately enhancing their striking capability so that they strike accurately.

GEOGRAPHIC INFORMATION SYSTEM

  • A geographic information system (GIS) is a computer system designed to capture, store, manipulate, analyze, manage, and present all types of geographical data

GLONASS [Global Navigation satellite system]

  • It is a radio based satellite navigation system a version of GPS developed by Russia. The fully operation GLONASS would require a constellation of 24 Geo stationary satellites. The 1st generation included URBAN-M/ GLONASS -M series with a lifetime of 7years. The 3rd generation satellites are called URAGAN-K/           GLONASS-K Satellites  with  lifetime  of  10-12 years.  As  of  Oct  2011  GLONASS system  remains  fully  operational with 24 operational satellites.   In 2005    an    agreement    between India    and    Russia    that    India would     share     some     of     the developed  costs  of  GLONASS-K series  launched  two  of  the  new satellites     (GLONASS-K     series from India).

GALILEO

  • EU has also been developing its own GPS called GALILEO satellite navigation system launched its first test satellite was launched in April -08 with the success of these two test satellites, it will launch a full fledged GPS with 30 Geostationary satellites in the Geostationary orbit. This  will end EU reliance on GPS system which is controlled by US military. It will be under civilian control  will  extend  to  its  user  an accuracy    level    up    to    1m    as compared  to  5m  accuracy  level provided by GPS of USA.
  • In the 11th FYP 475 VRC’s have been linking rural and semiurban blocks in future an exclusive satellite Transponder will be allotted to VRC’s, with adequate between to provide other satellite based services such as mobile communication, multimedia, Emergency supportcommunication,                   disaster management etc.

9.11         GPS AIDED GEO AUGMENTED NAVIGATION (GAGAN)

  • GAGAN is a Satellite Based Augmentation System project, which is jointly being implemented by Indian Space Research Organisation and Airport Authorities of India. The main objectives of GAGAN are to provide Satellite-based Navigation services with accuracy and integrity required for civil aviation applications and to provide better Air Traffic Management over Indian Airspace. The system will be
  • interoperable with other international SBAS systems and provides seamless navigation across regional boundaries.
  • The GAGAN architecture consists of 3 segments, namely, ground segment, space segment and user segment.The space segment consists of satellites carrying the GAGAN payloads. Currently, the GAGAN signal is being broadcast through two Geostationary Earth Orbit (GEO) satellites GSAT-8 and GSAT-10 covering whole Indian Flight Information Region (FIR) and beyond. An on-orbit spare GAGAN transponder will be flown on GSAT-1 The ground segment consists of several Indian Reference stations (INRES), Indian Master Control Centres (INMCC) and Indian Land Uplink stations (INLUS). The Directorate General of Civil Aviation (DGCA), India has certified the GAGAN system – to RNP0.1
  • (Required Navigation Performance, 0.1 Nautical Mile) service   level   on   December   30, 2013.  It  was  later  commissioned on     February     14,     2014.     The availability  of  GAGAN  Signal  in space will bridge the gap between European   Union’s   EGNOS   and Japan’s   MSAS   coverage   areas, thereby         offering         seamless navigation      to      the      aviation industry.   An   MOU   was   signed between     ISRO     and     AAI     in January  2014  for  a  period  of  7 years.   The   GAGAN   System   is poised    to    APV1/1.5    level    of certification   by   the   middle   of 2015  to  offer  precision  approach services   over   the   Indian   land mass.

9.12   ISRO TELEMETRY, TRACKING AND COMMAND NETWORK (ISTRAC)

  • ISTRAC with spacecraft control centre located at Bangalore has a network of ground stations in Lucknow, PortBlair, Sriharikota and other places abroad inc Mauritius, Russia(Bearslate) Indonesia(Biata) Brunei. ISTRACsupports Indian Remote Sensing Satellites.

INDIAN REGIONAL NAVIGATION SATELLITES SYSTEM (IRNSS)

  • IRNSS is an indigenously developed Navigation Satellite System that is used to provide accurate real-time positioning and timing services over India and region extending to 1500 km around India. The fully deployed IRNSS system consists of 3 satellites in GEO orbit and 4 satellites in GSO orbit, approximately 36,000 km altitude above earth surface. The requirement of such a navigation system is driven because access to foreign government- controlled global navigation satellite systems is not guaranteed in hostile situations, as happened to the Indian military depending on American GPS during the Kargil War. The IRNSS would provide two services, with the Standard Positioning Service open for civilian use, and the Restricted Service (an encrypted one) for authorised users (including the military).
  • IRNSS would have seven satellites, out of which four are already placed in orbit. The constellation of seven satellites is expected to operate from 2016 onwards.

 BHUVAN SERVICES

  • Bhuvan (http://bhuvan.nrsc.gov.in)       is       ISRO’s Geoportal    providing    visualisation services and Earth observation data to   users   in   public   domain.   The portal also provides various services for remote sensing user community. The  portal  has  witnessed  about  9.5 lakh  unique  visitors  in  the  last  five years  of  its  services.  It  has  about 51,000   registered   users   and   has served     more     than     2.8     lakhs downloads   from   NRSC   Open   EO Data    Archive    (NOEDA).    During 2014,  Bhuvan  had  26  new  releases of   applications   and   services,   like Bhuvan       visualisation       services, NRSC    Open    EO    Data    Archive (NOEDA)        Services,        Thematic Services,       Disaster       information services, Bhuvan – NICES Portal. Timely satellite data products demanded by Accelerated Irrigation Benefit Program (AIBP) to monitor major and medium national irrigation projects were released under “Web-enabled Bhuvan Products for AIBP (CWC) from Cartosat Missions”.
  • New applications in Bhuvan for Geo-Governance: State-wise portals are being developed on Bhuvan for Geo-Governance by providing all available Information on Administrative             layers, Agriculture & Soil, Disaster specific datasets, Geology & Mines, Land use/Land cover, Urban, Socio- economic details etc. Currently it is available for 11 Portal for mapping infrastructure, vehicle tracking and incident reporting was implemented to assist Government of Andhra Pradesh in General elections of 2014. Towards this, information on about 68,000 polling stations data was uploaded on Bhuvan.

INDIA’S POSITION IN THE FIELD OF SPACE TECHNOLOGY

  • India’s achievements in space technology have been recognized worldwide. They have been despite western Sanctionary low budget. Some of the achievements are India remote sensing data has been recognized world wide for its best quality. India contributes nearly 15% of market share in selling remote sensing data. India has emerged as the world leaders in the RS data market with 12 RS satellite in Space. Research rocket is an instrument carrying rocket designed to take measurements during scientific exp during its sub- orbits flights
  • India is also selling sounding rockets to Norway. Sounding rockets are launched to study upper atmospheric weather conditions. In India they are normally launched from Thumba Rocket Launching station in Kerala.
  • Satellite sub- system have been sold to various space agencies inthe west with successful launch of PSLV, India has entered into field of commercial launch of RS satellites[PSLV-CIO-> Tecsar].
  • Recognising India’s achievements in Space, UNO has established a Centre for space technology education in Asia – Pacific region located at Dehra- Dun. Space scientists of Indian origin have significantly contributed in the success of various space agencies of different countries.
SatelliteLaunch DateLaunch VehicleRemarks
Aryabhatta19-Apr-75C-1 IntercosmosProvided technological experience in building and operating a satellite system.
Bhaskara-I7-Jun-79C-1 IntercosmosFirst experimental remote sensing satellite. Carried TV and microwave cameras.
Rohini Technology Payload10-Aug-79SLV-3Intended for measuring in-flight performance of first experimental flight of SLV-3, the first Indian launch vehicle. Did not achieve orbit.
Rohini RS-118-Jul-80SLV-3Used for measuring in- flight performance of second experimental launch of SLV-3.
Rohini RS-D131-May-81SLV-3Used for conducting some remote sensing technology studies using a landmark sensor payload.Launched by the first developmental launch of SLV-3.First experimental
Payload Experiment Ariane Passenger19-Jun-81Ariane-1 (V-3)communication satellite. Provided experience in building and operating a payload experiment three-axis stabilised communication satellite.
Bhaskara-II20-11-1981C-1 IntercosmosSecond experimental remote sensing satellite; similar to Bhaskara-1. Provided experience in building and operating a remote sensing satellite system on an end-to-end basis.
INSAT-1A10-Apr-82Delta 3910 PAM-DFirst operational multipurpose communication and meteorology satellite. Procured from USA. Worked for only six months.
Rohini RS-D217-Apr-83SLV-3SLV-3.
INSAT-1B30-Aug-83Shuttle [PAM-D]Identical to INSAT-1A. Served for more than design life of seven years.
Stretched Rohini Satellite Series (SROSS-1)24-Mar-87ASLVCarried payload for launch vehicle performance monitoring and for gamma ray astronomy. Did not achieve orbit.
IRS-1A17-Mar-88VostokEarth observation satellite. First operational remote sensing satellite.
Stretched Rohini Satellite Series (SROSS-2)13-Jul-88ASLVCarried remote sensing payload of German space
INSAT-1C21-Jul-88Ariane-3agency in addition to Gamma Ray astronomy payload. Did not achieve orbit. Same as INSAT-1A. Served for only one-and- a-half years.
INSAT-1D12-Jun-90Delta 4925Identical to INSAT-1A. Still in service. A third stage motor landed from its launch, landed in Australia in 2008.[1]
IRS-1B29-Aug-91VostokEarth observation satellite. Improved version of IRS-1A.
INSAT-2DT26-Feb-92Ariane-44L H10Launched as Arabsat 1C. Procured in orbit from Arabsat in January 1998.
Stretched Rohini Satellite Series (SROSS-C)20-May-92ASLVCarried gamma ray astronomy and aeronomy payload.
INSAT-2A10-Jul-92Ariane-44L H10First satellite in the second-generation Indian-built INSAT-2 series. Has enhanced capability over INSAT-1 series. Still in service.
INSAT-2B23-Jul-93Ariane-44L H10+Second satellite in INSAT-2 series. Identical to INSAT-2A. Still in service.
IRS-1E20-09-1993PSLV-D1Earth observation satellite. Did not achieve orbit.
Stretched Rohini Satellite Series (SROSS-C2)4-May-94ASLVIdentical to SROSS-C. Still in service.
IRS-P215-Oct-94PSLV-D2Earth observation satellite. Launched by second developmental flight of PSLV.
INSAT-2C7-Dec-95Ariane-44L H10-3Has additional capabilities such as mobile satellite service, business communication and television outreach beyond Indian boundaries. Still in service.
IRS-1C29-Dec-95MolniyaEarth observation satellite. Launched from Baikonur Cosmodrome.
IRS-P321-Mar-96PSLV-D3Earth observation satellite. Carries remote sensing payload and an X-ray astronomy payload. Launched by third developmental light of PSLV.
INSAT-2D4-Jun-97Ariane-44L H10-3Same as INSAT-2C. Inoperable since 1997- 10-04 due to power bus anomaly.
IRS-1D29-SepPSLV-C1Earth observation satellite. Same as IRS-1C.
INSAT-2E3-Apr-99Ariane-42P H10-3Multipurpose communication and meteorological satellite.
IRS-P4 OCEANSAT26-May-99PSLV-C2Earth observation satellite. Carries an Ocean Colour Monitor (OCM) and a Multifrequency Scanning Microwave Radiometer (MSMR).
INSAT-3B22-Mar-00Ariane-5GMultipurpose communication: business communication, developmental communication, and mobile communication.
GSAT-118-Apr-01GSLV-D1Experimental satellite for the first developmental flight of Geosynchronous Satellite Launch Vehicle, GSLV-D1.
Technology Experiment Satellite (TES)22-Oct-01PSLV-C3Experimental satellite to test technologies such as attitude and orbit control system, high-torque reaction wheels, new reaction control system, etc.
INSAT-3C24-Jan-02Ariane-42L H10-3Designed to augment the existing INSAT capacity for communication and broadcasting and provide continuity of the services of INSAT-2C.
Kalpana-1 (METSAT)2002PSLV-C4First meteorological satellite built by ISRO. Originally named METSAT. Renamed after Kalpana Chawla who perished in the Space
INSAT-3A10-Apr-03Ariane-5GMultipurpose satellite for communication, broadcasting, and meteorological services along with INSAT-2E and Kalpana-1.
GSAT-28-May-03GSLV-D2Experimental satellite for the second developmental test flight of Geosynchronous Satellite Launch Vehicle (GSLV)
INSAT-3E28-SepAriane-5GCommunication satellite to augment the existing INSAT System.
RESOURCESAT-1 (IRS-P6)17-Oct-03PSLV-C5Earth observation/remote sensing satellite. Intended to supplement and replace IRS-1C and IRS-1D.
EDUSAT20-Oct-04GSLV-F01Also designated GSAT-3. India’s first exclusive educational satellite.
HAMSAT5-May-05PSLV-C6Microsatellite (42.5 kilograms) for providing satellite-based amateur radio services to the national as well as the international community.
CARTOSAT-15-May-05PSLV-C6Earth observation satellite. Provides stereographic in-orbit images with a 2.5-meter resolution.
INSAT-4A22-Dec-05Ariane-5GSAdvanced satellite for direct-to-home television broadcasting services. Geosynchronous communications satellite. Did not achieve orbit.
CARTOSAT-210-Jan-07PSLV-C7Advanced remote sensing satellite carrying a panchromatic camera capable of providing scene-specific spot images.
Space Capsule Recovery Experiment (SRE-1)10-Jan-07PSLV-C7Experimental satellite intended to demonstrate the technology of an orbiting platform for performing experiments in microgravity conditions. Launched as a co-passenger with CARTOSAT-2. SRE-1 was de-orbited and recovered successfully after 12 days over Bay of Bengal.
INSAT-4B12-Mar-07Ariane-5ECAIdentical to INSAT-4A. Further augments the INSAT capacity for direct-to-home (DTH) television services and other communications. On the night of 7 July INSAT-4B experienced a power supply glitch which led to switching 'off' of 50 per cent of the transponder capacity (6 Ku and 6 C-Band transponders).
INSAT-4CR2-Sep-07GSLV-F04Identical to INSAT-4C. It carried 12 high-power Ku-band transponders designed to provide direct-to-home (DTH) television services, Digital Satellite News Gathering etc.
CARTOSAT-2A28-Apr-08PSLV-C9Earth observation/remote sensing satellite. Identical to CARTOSAT-
IMS-1 (Third World Satellite – TWsat)28-Apr-08PSLV-C9Low-cost microsatellite imaging mission. Launched as co-passenger with CARTOSAT-2A.
Chandrayaan-122-Oct-08PSLV-C11Unmanned lunar probe. Carries 11 scientific instruments built in India, USA, UK, Germany, Sweden and Bulgaria.
RISAT-220-Apr-09PSLV-C12Radar imaging satellite used to monitor India's borders and as part of anti-infiltration and anti- terrorist operations. Launched as a co-passenger with ANUSAT.
ANUSAT20-Apr-09PSLV-C12Research microsatellite designed at Anna University. Carries an amateur radio and technology demonstration experiments.
Oceansat-2 (IRS- P4)23-SepPSLV-C14Gathers data for oceanographic, coastal and atmospheric applications. Continues mission of Oceansat-1.
GSAT-415-Apr-10GSLV-D3Communications satellite technology demonstrator. Failed to reach orbit due to GSLV- D3 failure.
CARTOSAT-2B12-Jul-10PSLV-C15Earth observation/remote sensing satellite. Identical to CARTOSAT-2A.
GSAT-5P / INSAT- 4D25-DecGSLV-F06C-band communication satellite, failed to reach orbit due to GSLV-F06 failure.
RESOURCESAT-220-Apr-11PSLV-C16PSLV-C16 placed three satellites with a total payload mass of 1404 kg - RESOURCESAT-2 weighing 1206 kg, the Indo-Russian YOUTHSAT weighing 92 kg and Singapore's X- SAT weighing 106 kg – into an 822 km polar Sun Synchronous Orbit (SSO).
GSAT-8 / INSAT- 4G21-May-11Ariane-5 VA- 202Communications satellite carries 24 Ku- band transponders and 2 channel GAGAN payload operating in L1 and L5 band.
GSAT-1215-Jul-11PSLV-C17GSAT-12 communication satellite built by ISRO, weighs about 1410 kg at lift-off. GSAT-12 is configured to carry 12 Extended C-band transponders to meet the country's growing demand for transponders in a short turn-around- time.The 12 Extended C- band transponders of GSAT-12 will augment the capacity in the INSAT system for various communication services like Tele- education, Telemedicine and for Village Resource Centres (VRC).Mission life About 8 Years.
Megha-Tropiques12-Oct-11PSLV-C18Megha-Tropiques weighs about 1000kg Lift-off Mass, developed jointly by ISRO and the French Centre National d'Études Spatiales (CNES). PSLV- C18 is configured to carry four satellites in which, one satellite, developed by India and France, will track the weather, two were developed by educational institutions, and the fourth is from Luxembourg.
RISAT-126-Apr-12PSLV-C19RISAT-1, first indigenous all-weather Radar Imaging Satellite (RISAT-1), whose images will facilitate agriculture and disaster management weighs about 1858kg.
GSAT-1029-SepAriane-5 VA- 209GSAT-10, India’s advanced communication satellite, is a high power satellite being inducted into the INSAT system. Weighing 3400 kg at lift-off.
SARAL25-Feb-13PSLV-C20SARAL, The Satellite with ARGOS and ALTIKA (SARAL) is a joint Indo-French satellite mission for oceanographic studies. For more information on SARAL pls refer below
IRNSS-1A1-Jul-13PSLV-C22IRNSS-1A is the first satellite in the Indian Regional Navigation Satellite System (IRNSS). It is one of the seven spacecraft constituting the IRNSS space segment.
INSAT-3D26-Jul-13Ariane-5INSAT-3D is the meteorological Satellite with advanced weather monitoring payloads.
GSAT-730-Aug-13Ariane-5GSAT-7 is the advanced multi-band communication satellite dedicated for military use.
Mars Orbiter Mission (MOM)5-Nov-13PSLV-C25
GSAT-145-Jan-14GSLV-D5GSAT-14 is the twenty third geostationary communication satellite of India to augment the In-orbit capacity of Extended C and Ku-band transponders.
IRNSS-1B4-Apr-14PSLV-C24IRNSS-1B is the second satellite in the Indian Regional Navigation Satellite System (IRNSS).
IRNSS-1C10 November 2014
PSLV-C26IRNSS-1C is the third satellite in the Indian Regional Navigation Satellite System (IRNSS).
GSAT-167-Dec-14Ariane-5GSAT-16 is twenty fourth communication satellite of India configured to carry a total of 48 communication transponders.
IRNSS-1D28-Mar-15PSLV-C27IRNSS-1D is the fourth satellite in the Indian Regional Navigation Satellite System (IRNSS).
GSAT-627-Aug-15GSLV-D6GSAT-6 is a communication satellite. GSAT- 6 features an unfurlable antenna, largest on board any satellite. Launch of GSLV-D6 also marks the success of indigenously developed upper stage
Astrosat28 September 2015
PSLV-C30ASTROSAT is India’s first dedicated multi wavelength space
Observatory.
GSAT-1511-Nov-15Ariane 5 VA- 227Communications satellite, carries communication transponders in Ku-band and a GPS Aided GEO Augmented Navigation (GAGAN) payload
operating in L1 and L5 bands. Weight 3164 Kg.

SARAL:

  • SARAL will perform altimetric measurements designed to study ocean circulation and sea surface elevation. The payloads of SARAL are:
  • Ka band Altimeter, ALTIKA– built by the French National Space Agency CNES. The payload is intended for oceanographic applications, operates at 35.75 Giga
  • ARGOS Data Collection System– built by the French National Space Agency CNES. ARGOS contributes to the development and operational implementation of the global ARGOS Data Collection System. It will collect a variety of data from ocean buoys to transmit the same to the ARGOS Ground Segment for subsequent processing and distribution.
  • Solid State              C-band Transponder (SCBT) is from ISRO and intended for ground RADAR calibration. It is a continuation of such support provided by C-Band Transponders flown in the earlier IRS-P3 and IRS-P5
  • The payloads of SARAL are accommodated in the Indian Mini Satellite-2 bus, which is built by ISRO. –

SARAL Applications

  • SARAL data products will be useful for operational as well as research user communities in many fields like
  • Marine meteorology and sea state forecasting
  • Operational oceanography
  • Seasonal forecasting
  • Climate monitoring
  • Ocean, earth system and climate research
  • Continental ice studies
  • Protection of biodiversity
  • Management and protection of marine ecosystem
  • Environmental monitoring
  • Improvement of maritime security

Mars Orbiter Mission

  • Mars Orbiter Mission also called as Mangalyaan is India’s first interplanetary mission to planet Mars with an orbiter craft designed to orbit Mars in an elliptical orbit. It is orbiting Mars since 24 September 201 It was launched on 5 November 2013 by the Indian Space Research Organisation (ISRO).It is India’s first interplanetary mission and ISRO has become the fourth space agency to reach Mars, after the Soviet space program, NASA, and the European Space Agency. It is the first Asian nation to reach Mars orbit, and the first nation in the world to do so in its first attempt. The mission is a “technology demonstrator” project to develop the technologies for designing, planning, management, and operations of an interplanetary mission. It has been configured to carry out observation of physical features of mars and carry out limited study of Martian atmosphere with following five payloads:
  • Mars Colour Camera (MCC)
  • Thermal Infrared Imaging Spectrometer (TIS)
  • Methane Sensor for Mars (MSM)
  • Mars Exospheric Neutral Composition Analyser (MENCA)
  • Lyman Alpha Photometer (LAP)

The spacecraft is currently being monitored from the Spacecraft Control Centre at ISRO Telemetry, Tracking and Command Network (ISTRAC) in Bangalore with support from Indian Deep Space Network (IDSN) antennae at Byalalu.

ASTROSAT 

  • ASTROSAT is India’s first dedicated multi wavelength space observatory. This scientific satellite mission endeavours for a more detailed understanding of our universe. One of the unique features of ASTROSAT mission is that it enables the simultaneous multi-wavelength observations of various astronomical objects with a single satellite.
  • ASTROSAT will observe universe in the optical, Ultraviolet, low and high energy X-ray regions of the electromagnetic spectrum, whereas most other scientific satellites are capable of observing a narrow range of wavelength band.            Multi-wavelength observations of ASTROSAT can be further extended with co- ordinated observations using other spacecraft and ground based observations. All major astronomy Institutions and some Universities in India will participate in these observations.
  • ASTROSAT has a lift-off mass of about 1513 kg. It will be launched into a 650 km orbit inclined at an angle of 6 deg to the equator by PSLV-C30. After injection into Orbit, the two solar panels of ASTROSAT are automatically deployed in quick succession. The spacecraft control centre at Mission Operations Complex (MOX) of ISRO Telemetry, Tracking and Command Network (ISTRAC) at Bangalore will manage the satellite during its mission life.
  • The science data gathered by five payloads of ASTROSAT are telemetered to the ground station at MOX. The data is then processed, archived        and distributed by Indian Space Science Data Centre (ISSDC) located at Byalalu, near The scientific objectives of ASTROSAT mission are:
  • To understand high energy processes in binary star systems containing neutron stars and black holes
  • Estimate magnetic fields of neutron stars
  • Study star birth regions and high energy processes in star systems lying beyond our galaxy
  • Detect new briefly bright X-ray sources in the sky
  • Perform a limited deep field survey of the Universe in the Ultraviolet region
Chandrayaan-2Chandrayaan-2 will be India's second mission to the Moon which will include an orbiter and lander-rover module. Chandrayaan-2 will be launched on India's Geosynchronous Satellite Launch Vehicle (GSLV-MkII) around 2016 - 2017 timeframe. The science goals of the mission are to further improve the understanding of the origin and evolution of the Moon.
Aditya (spacecraft)ISRO plans to carry out a mission to the Sun by the year 2015-16. The probe is named as Aditya-1 and will weigh about 400 kg. It is the First Indian based Solar Coronagraph to study solar Corona in visible and near IR bands. Launch of the Aditya mission was planned during the high solar activity period in 2012 but was postponed to 2015–2016 due to the extensive work involved in the fabrication and other technical aspects . The main objectives is to study the Coronal Mass Ejection (CME) and consequently the crucial physical parameters for space weather such as the coronal magnetic field structures, evolution of the coronal magnetic field etc. This will provide completely new information on the velocity fields and their variability in the inner corona having an important bearing on the unsolved problem of heating of the corona would be obtained.
AVATARAVATAR from "Aerobic Vehicle for Transatmospheric Hypersonic Aerospace TrAnspoRtation" is a concept for a manned single-stage reusable spaceplane capable of horizontal takeoff and landing, by India's Defence Research and Development Organization along with Indian Space Research Organization and other research institutions. The mission
concept is for low cost military and commercial satellite space launches, as well as for space tourism.
The first scaled-down tests are planned for 2015, and the first manned AVATAR flight is proposed for 2025.
SAARC
satellite
SAARC Satellite is a proposed communication-cum- meteorology satellite for the SAARC region. It was announced by the prime minister of India, Narendra Modi in August 2014. It is proposed for a launch in December 2016.
GSAT-6 / INSAT-4EThe primary goal of GSAT-6/INSAT-4E, which is a Multimedia broadcast satellite, is to cater to the consumer requirements of providing entertainment and information services to vehicles through Digital Multimedia consoles and to the Multimedia mobile Phones. The satellite carries a 5 spot beam BSS and 5 spot beam MSS. It will be positioned at 83° East longitude with a mission life of 12 years.
GSAT- 7/INSAT-4FIt is a multi-band satellite carrying payloads in UHF, S-band, C-band and Ku band. The satellite weighs 2330 kg with a payload power of 2000W and mission life of 9 years.
GSAT-9GSAT-9 will carry 6 C band and 24 Ku band transponders with India coverage beam. The satellite is planned to be launched during 2011–12 With a mission life of 12 years and positioned at 48° East longitude. This I-2K satellite has a liftoff mass of 2330 kg and payload power of 2300 W.
GSAT-11

GSAT-11
GSAT-11 is based on I-4K bus which is under advanced stage of development. The spacecraft can generate 10–12 KW of power and can support payload power of 8KW. The payload configuration is on-going. It consists of 16 spot beams covering
entire country including Andaman & Nicobar islands. The


communication link to the user-end terminals operate in Ku- band while the communication link to the hubs operate in Ka- band. The payload is configured to be operated as a high data throughput satellite, to be realised in orbit in 2013 time frame.
NISARNasa-Isro Synthetic Aperture Radar (Nisar) is a joint project between NASA and ISRO to co-develop and launch a dual frequency synthetic aperture radar satellite to be used for remote sensing. It is notable for being the first dual band radar imaging satellite.
Chandrayaan-2Chandrayaan-2 Will be India's second mission to the Moon which will include an orbiter and lander-rover module. Chandrayaan-2 Will be launched on India's Geosynchronous Satellite Launch Vehicle (GSLV-MkII) around 2016 - 2017 timeframe. The science goals of the mission are to further improve the understanding of the origin and evolution of the
Moon.
Aditya (spacecraft)







Aditya (spacecraft)
ISRO plans to carry out a mission to the Sun by the year 2015-
16. The probe is named as Aditya-1 and will weigh about 400 kg. It is the First Indian based Solar Coronagraph to study solar Corona in visible and near IR bands. Launch of the Aditya mission was planned during the high solar activity period in 2012 but was postponed to 2015–2016 due to the extensive work involved in the fabrication and other technical aspects . The main objectives is to study the Coronal Mass Ejection (CME) and consequently the crucial physical parameters for space weather such as the coronal magnetic field structures, evolution of the coronal magnetic field etc. This will provide completely new information on the velocity fields and their variability in the inner corona having an important bearing on
the unsolved problem of heating of the corona would be obtained.
AVATARAVATAR from "Aerobic Vehicle for Transatmospheric Hypersonic Aerospace TrAnspoRtation" is a concept for a manned single-stage reusable spaceplane capable of horizontal takeoff and landing, by India's Defence Research and Development Organization along with Indian Space Research Organization and other research institutions. The mission concept is for low cost military and commercial satellite space launches, as well as for space tourism.
The first scaled-down tests are planned for 2015, and the first manned AVATAR flight is proposed for 2025.
SAARC
satellite
SAARC Satellite is a proposed communication-cum- meteorology satellite for the SAARC region. It was announced by the prime minister of India, Narendra Modi in August 2014. It is proposed for a launch in December 2016.
GSAT-6 / INSAT-4EThe primary goal of GSAT-6/INSAT-4E, which is a Multimedia broadcast satellite, is to cater to the consumer requirements of providing entertainment and information services to vehicles through Digital Multimedia consoles and to the Multimedia mobile Phones. The satellite carries a 5 spot beam BSS and 5 spot beam MSS. It will be positioned at 83° East longitude with a mission life of 12 years.

 

MISCELLANEOUS MEDICAL RESEARCH

  • What are “anabolic steroids”? Give one example. Why have they been in the news recently? (89/II/8b(C)/3)
  • What is ultrasound ? State two of its uses in modern medical practice. (89/II/8d(C)/3)
  • The ICMR has cautioned that the dreaded disease AIDS might spread in the next few years in India too. What steps are recommended for its control ? (90/II/7b/20)
  • Write an account of BVO. Give reasons against its use. (90/II/7d/20)
  • What  is            Hepatitis E? (91/II/8d(C)/3)
  • What is MRI ? What is it used for ? (92/II/8f(C)/3)
  • What is DPT Vaccine ? What is it used for ? (93/II/8b(C)/3)
  • What are the diseases caused by Iodine Deficiency ? What steps are beings taken to tackle the problem in India ?
  • What is AIDS ? Describe its salient features. (About 250 Words).
  • What is ‘amniocentesis’? What has

made it a controversial technique ?

  • What is Elisa ? What is it used for ?
  • What is pacemaker ? How does it work ?
  • What is bioremediation ?
  • What is HIV ? What does it cause ?
  • What is ‘Madcowdisease’ ?
  • What is Polio ? Name its few features and how it can be prevented.
  • What are enzymes ? What is their importance ?
  • Why is the HIV considered so dangerous? Why has the spread of the virus proved so difficult to contain, especially in the poorer countries of the world ?
  • Discuss the applications of nanotechnology in the health care sector.

MATERIAL TECHNOLOGY

  • How do    ‘quartz    watches’    keep accurate time? (89/II/8c(C)/3)
  • What is the application of susperconductors in computers? (90/II/3b/40)
  • What is photonics? Mention some of the areas of its application. (90/II/8c(C)/3)
  • What are high-temperature super- conductors? (94/II/7b/20)
  • What is            Piezoelectricity? (94/II/8c(C)/3
  • What is microwave oven? How does it cook food? (96/II/7c/20)
  • What is              centchroman? (96/II/8a(A)/3)
  • What is           ultrasonography? (96/II/8b(C)/3)What are fullerness? Why are they important? (97/II/7c/20
  • What are Quasars? (97/II/8f(C)/3)
  • What is ‘ Superconductivity’ ? Give its uses and applications. (04/II/11a/15)
  • Describe the important of “Laser”in war and peace. (04/II/11c/15)Explain how Nanoscience and Nanotechnology have revolutionized modern technology. (06/II/10/30)
  • What is ‘Nanotech’? Give a brief account of its basic concepts, material used and application. (09/II/9b/10)

IT AND COMPUTER

5.1. BIG DATA

Why in news?

  • Big data is being increasingly used by the government in policy formation.

What is Big Data?

  • Big data is a term that describes the large volume of data – both structured and unstructured beyond the ability of commonly used software tools to capture, curate, manage, and process data within a tolerable elapsed time.
  • Big data can be analyzed for insights that lead to better decisions and strategic business moves.
  • Big data is characterized by 4Vs – Variety, Volume Velocity and Value. Additionally, two more concepts have been added – Variability and Complexity
  • Interesting insights from big data can be got using data mining.

Data mining

  • It’s defined as a process used to extract usable data from a larger set of any raw data by analysing data patterns in large batches of data using one or more software
  • It involves effective data collection and warehousing as well as computer processing.
  • It uses sophisticated mathematical algorithms for segmenting the data and evaluating the probability of future events.
  • Data mining is also known as Knowledge

Discovery in Data (KDD).

Applications of Big Data

  • Better understanding and targeting of customers.
  •  Optimization of Businesses processes
  • optimizing treatment and even predicting diseases
  • Analyze and improve the performance of individuals
  • Prevent cyber-attacks, detect credit card fraud, foil terrorism and even predict criminal activity.
  • optimizing the heating or lighting in our homes, the traffic flow in our cities, or the energy grid across the country.
  • In the wake of challenges for Big data in India, government had constituted a committee under Justice B.N. Srikrishna which came out with a white paper on Data Protection Framework for India. Earlier in 2016, CAG finalized a Big Data Management Policy to make itself future ready.

5.2. MAHARASHTRA’S PUBLIC CLOUD POLICY

Why in News?

  • Maharashtra became the first state to mandate its departments to shift their data storage onto the cloud unlike currently where government departments have their own data storage facilities.

Details

  •  Cloud Storage- Cloud storage is a service model in which data is maintained, managed, backed up remotely and made available to users over a network or cloud services platform (typically the Internet).
  • Apart from storage, cloud computing also involves on-demand delivery of compute power, applications, and other IT resources
  • Similar Government initiatives
  • Digilocker Service- It is a part of goverment’s
  • Digital India Initiative, to enable Indian citizens to store certain official documents on the cloud.
  •  GI Cloud Initiative (Meghraj): To accelerate delivery of e-services in the country while optimizing ICT spending of the Government. The National Informatics Centre (NIC) is providing National Cloud services under this.

5.3. BLOCK-CHAIN TECHNOLOGY

Why in news?

  • The Finance Ministry recently issued a statement warning against investing in bitcoin and other cryptocurrencies (CCs). These currencies use a technology called blockchain.

What are cryptocurrencies?

  •  A cryptocurrency is a digital or virtual currency that uses cryptography for security. Hence it is difficult to counterfeit. It is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
  • The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. Bitcoin’s success has spawned a number of competing cryptocurrencies, such as Litecoin, Ethereum, Namecoin, PPCoin etc.
  • Advantages: easier to transfer funds with minimal processing fees, safety from hackers due to block-chain technology and difficult to counterfaeit
  • Disadvantages: well-suited for illegal activities such as money laundering, tax evasion due to anonymous nature of transactions, rate of exchange of cryptocurrencies fluctuate widely and a digital cryptocurrency balance can be wiped out by a computer crash. Recently concerns are being raised on its immunity to hacks as well.
  • Various countries have adopted use of bitcoins with regulations such as China, South Korea, Japan etc.
  • Some countries are also coming up with their virtual currencies such as PETRO by Venezuela,WhatSOVis (Sovereign)it? by Marshall Islands etc.
  •  India does not consider crypto-currencies as legal
  •  Blockchains are basically digital ledgers or tender or coin.
  • decentralized database of financial transactions that are immutable and instantly updated across the world.
  • Distributed database: The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable.
  • Whenever a financial transaction happens, it is grouped in a cryptographically protected block with other transactions and sent out to the entire network.
  • The members in the network then validate the transactions by solving complex coded problems.
  • The new validated block is then added to the chain in a linear, chronological order and linked to older blocks making it a chain of blocks that show every transaction made in the history of that blockchain
  • Thus, the blockchain cannot be controlled by a single entity and has no single point of failure

Importance

  • The World Economic Forum in 2015, predicts that 10% of global GDP will be stored on the blockchain by 2027.
  • Crypto currency (CC) is just one use of Blockchain technology. The other possible uses are – streamlining payment mechanism,
  • eliminated the need for trust. Programmable money to not allow using products of company flouting norms, promoting artificial intelligence and internet of things etc.

Challenges:

  • The main challenges today are the missing standards, the unclear legal and regulatory framework, lacking confidence and technical issues. Current blockchains have trouble with scalability and latency (i.e. verification speed).

5.4. INDIA JOINS QUANTUM COMPUTING RACE

Why in news?

  • Department of Science and Technology is planning to fund a project to develop quantum computers.

What is quantum computing?

  • In a classical computer, information is stored using binary units, or bits. A bit is either a 0 or
  • A quantum computer instead takes advantage of quantum mechanical properties to process information using quantum bits, or qubits.
  • They function according to two key principles of quantum physics: superposition and entanglement.
  • Superposition means that each qubit can represent both a 1 and a 0 at the same time.
  • Entanglement means that qubits in a superposition can be correlated with each other; that is, the state of one (whether it is a
  • 1 or a 0) can depend on the state of another.
  •  Using these two principles, qubits can act as more sophisticated switches, enabling quantum computers to function in ways that allow them to solve difficult problems that are intractable using today’s computers.
  • The computing power of a quantum computer increases exponentially as the qubits are increased.
  •  It can be used in research in new medicine and organic materials as quantum computers would require 3.5 million fewer steps as compared to a traditional machine.
  • Other uses – efficient logistics and delivery mechanism, more secure platforms for banking transactions, revolutionize artificial
    intelligence by faster processing of complicated data, faster communication etc.
  • Quantum mechanics (QM): QM deals with sub-atomic particles viz electrons and photons. It is used in making products such as integrated circuit chips and fibre-optic lines for global, instantaneous communication.
  • Quantum cryptography: It is a recent technique that can be used to ensure the confidentiality of information transmitted between two parties by exploiting the counterintuitive behavior of elementary particles such as photons. Quantum cryptography is different from traditional cryptographic systems in that it relies more on physics, rather than mathematics, as a key aspect of its security model.

QUESS

  •  China launched the world’s first satellite under the Quantum Experiments at Space Scale (QUESS) mission, to test the fundamentals of quantum communication in space.
  •  It is known as Micius, after an ancient Chinese philosopher.

5.5. SUPERCOMPUTERS PRATYUSH AND MIHIR

Why in news?

  • Recently, the Minister for Earth Sciences (MoES) unveiled India’s fastest supercomputer named Pratyush and high performance computer system ‘Mihir’.

National Supercomputing Mission

  •  It’s implemented and steered jointly by the Department of Science and Technology (DST) and Department of Electronics and Information Technology (DeitY)
  •  Mission envisages empowering our national academic and R&D institutions spread over the country by installing a vast supercomputing grid comprising of more than 70 high-performance computing facilities.
  • These supercomputers will also be networked on the National Supercomputing grid over the National Knowledge Network (NKN) under Ministry of Electronics & Information Technology.
  • The NKN is another programme of the government which connects academic institutions and R&D labs over a high speed network
  • The Mission also includes development of highly professional High Performance Computing (HPC) aware human resource for meeting challenges of development of these applications.

More on news

  •  MoES has acquired a high performance
  • computing (HPC) system which is an array of computers jointly hosted by IITM, Pune and
  • National Centre for Medium Range Weather Forecasting, Noida.
  • The HPC at Pune is named Pratyush with a capacity of 4 petaflops (a measure of a computer’s processing speed expressed as a quadrillion floating point operations per second) and HPC at Noida named Mihir with capacity of 2.8 petaflops giving a total capacity of 6.8 petaflops.
  • It is India’s first multi-petaflop supercomputer and is the fourth fastest super-computer in the world which is dedicated to weather and climate research after Japan, U.S.A. and United Kingdom.
  • It will also take India up from the present 365th position to top 30 in the infrastructural ranking of Top 500 HPC facilities in the world.
  • Other top five super computers of India are SahasraT (Cray XC40), Aaditya (IBM/Lenovo system), TIFR Colour Boson (Cray XC-30), IIT Delhi HPC and Param Yuva 2.
  • Sunway TaihuLight is the World’s fastest computer, belonging to China

5.6. PANEL FOR AI ROADMAP

Why in news?

  • The government has formed a high-level panel under the chairmanship of Rajiv Kumar to lay out a roadmap for India’s research and development on AI and its applications.

Artificial Intelligence

  • It is branch of computer science dealing with simulation of intelligent behavior in computers vis-a-vis visual perception, speech recognition, decision making and translation between languages.
  • It enables computer system to carry out task on their own that otherwise requires human intelligence.
  • Robotics is also a major field related to AI.

Other Developments

  • Recently, Department of Defence Production constituted a task force headed by N Chandrasekaran, to study use of artificial intelligence in military.
  • Commerce and Industry Minister Sets up Task Force chaired by V. Kamakoti on Artificial Intelligence for Economic Transformation.

5.6.1. PROJECT BRAINWAVE

  • Microsoft has launched “Project Brainwave”, a deep learning acceleration platform for real-time artificial intelligence (AI).
  •  It uses the massive field-programmable gate array (FPGA) infrastructure.
  • The system architecture allows very high throughput, with the FPGA processing requests as fast as the network can stream them.
  •  Significance: Real-time AI is becoming
  • increasingly important as cloud infrastructures process live data streams, whether they be search queries, videos, sensor streams, or interactions with users.

About deep learning

  • It is a subset of machine learning which utilizes hierarchical level of artificial neural networks to process unstructured data.
  • Neural networks are a set of algorithms, modeled loosely after the human brain, that are designed to recognize patterns
  • A hierarchical neural network is an artificial neural network(ANN) with multiple hidden layers between the input and output layers

5.6.2. HUMANOID

  • A humanoid robot is a robot with its overall appearance based on that of the human body.
  • Features of Humanoid Robots o Self-maintenance
  •  Autonomous learning
  •  Avoiding harmful situations to people, property, and itself
  • Safe interacting with human beings and the environment
  • Androids are humanoid robots built to resemble a male human, and Gynoids are humanoid robots built to resemble a human female.
  • Recently, Humanoid Robot Sophia became world’s first robot citizen as Saudi Arabia granted citizenship to her in a bid to promote artificial intelligence.
  • Other Example: Unplugged (USA), Asimo (Japan), Icub (Cognitive Universal Body by European university), Poppy (france), Lexy & Tess (Germany), Actroid-Sit (Japan) etc.

About Sophia

  • Sophia is a social humanoid robot developed by Hong Kong-based company Hanson Robotics under David Hanson.
  • Sophia is conceptually similar to the computer program ELIZA, which was one of the first attempts at simulating a human conversation.
  • The software has been programmed to give pre-written responses to specific questions .The information is shared in a cloud network which allows input and responses to be analysed with blockchain technology.
  •  She also made surprise appearance at UN and also joined meeting on artificial intelligence and sustainable development.
  • In Artificial intelligence, turing test is a method of inquiry for determining whether or not a computer is capable of thinking like a human being.

5.7. TELECOM SECTOR

5.7.1. BHARAT NET PROJECT

Why in news?

  • As of now, over 1.04 lakh gram panchayats have been made “service ready” for providing broadband connectivity as on March 11 under Bharat Net project

About International Telecommunications Union

  •  ITU is the United Nations specialized agency for information and communication technologies – ICTs.
  • It allocates global radio spectrum and satellite orbits, develop the technical standards that ensure networks and technologies seamlessly interconnect, and strive to improve access to ICTs to underserved communities worldwide.
  • Members: It includes both public and private sector membership i.e 193 UN Member States and ICT regulators, many leading academic institutions and some 700 tech companies.

Bharat Net Project

  •  In 2011, National Optical Fibre Network(now called Bharat Net Project) was launched to provide broadband connectivity to 2.5 lakh Gram Panchayats with an affordable broadband connectivity of 2 Mbps to 20 Mbps.
  •  It is being implemented by a special purpose vehicle (SPV) named Bharat Broadband Network Ltd (BBNL) set up under Companies Act.
  • It is  funded  through  Universal  Service

Obligation Fund (USOF)

 

  • Bharat Net Project is also significant for generation of as much as 5 lakh jobs during the installation of Wi-Fi hot spots.
  • Some issues involved are high usage of internet through mobile phone, cyber security, high cost of services, low internet education.

Universal Service Obligation Fund:

  • It aims to provide non-discriminatory access to quality ICT services at affordable prices to people in rural and remote areas through subsidy support to incentivizing telecom service providers to venture forth and provide services to such target beneficiaries.
  • It was envisaged in National Telecom Policy, 1999 and was given statutory status through Indian Telegraph (Amendment) Act, 2003.
  • The resources are raised through a ‘Universal Access Levy (UAL)’, which would be a percentage of the revenue earned by the operators under various licenses.

Optical Fibre Technology

  • Fibre optics, is the science of transmitting data,voice, and images by the passage of light through thin, transparent fibres.
  • Optical fibre  is  made  up  of  semiconducting materials and usually has a cylindrical structure. In inner core there is material of higher refractive index than in outer core resulting in Total Internal Reflection (TIR)
  • When light passes from a medium with one index of refraction (m1) to another medium with a lower  index  of refraction  (m2),  it  bends  or refracts    away  from   an  imaginary  line perpendicular to the surface (normal line)
  • However at critical angle, the refracted  light travel along the surface between the two media and  at  angle  greater  than  critical  angle,  the refracted beam will be reflected entirely back into m1. This phenomenon is known as total internal reflection.
  • Optical fibers allow data signals to propagate through them by ensuring that the light signal enters the fiber at an angle greater than the critical angle of the interface between two types of glass.

5.7.2. 5G

Why in news?

  • The government has set up a high level forum
  • to evaluate roadmaps and formulate a strategy to adopt 5G in the country by 2020

What is 5G?

  • 5G is a wireless communication technology. It is the next generation mobile networks technology after 4G LTE networks.
  • The final standard for 5G will be set up by the International Telecommunications Union (ITU).

What is spectrum and how does it work?

  • Spectrum refers to the radiowaves that are used by mobile phones to transmit data.
  • The spectrum has been divided into bands by the government for uninterrupted transmission of data.
  • Carriers in India use airwaves in the 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.
GenerationYear
1.generation (1G)

  • First wireless communication.

  • Voice Calls.

  • Limited capacity, not secure,
    background interference

  • 2 Kbps

2.Generation (2G)


  • Digital version of 1G technology

  • Voice calls, Short messages,browsing (partial)

  • Low network range, slow datarates

  • 64 Kbps

3.Generation (3G)


  • Digital broadband,speed increments

  • Video conferencing, mobile TV,GPS

  • High power consumption, Low network coverage, High cost of
    spectrum licence.

  • 2 Mbps

4.Generation(4G)


  • Very high speeds, All IP


  • High speed applications, mobile TV, Wearable devices


  • Hard to implement, complicated hardware required


  • 1 Gbps

5.Generation (5G)

  • Cell densification, software defined network, low signal traffic

  • Hologram TV, Augemented reality, Ultra large and high data transfer, energy saving.


  • More than 1 Gbps

  • Low-frequency transmissions can travel greater distances before losing their integrity, and they can pass through dense objects more easily. Less data can be transmitted over these radio waves.
  • Higher-frequency transmissions carry more data, but are poorer at penetrating obstacles. The higher the frequency, the lower the wavelength, and thus the more energy that’s required to cover the same distance.
  • Wireless Planning and Coordination (WPC) Wing, under Department of Telecommunications (DoT) is responsible for spectrum management at the national level.

About The internet of things (IoT)

 

  • The internet of things (IoT) is the network of physical devices, vehicles, buildings and other items-embedded with electronics, software, sensors, and network connectivity that enable these objects to collect and exchange data.
  • Thus IoT creates opportunities for more direct integration of the physical world into computer-based systems, and resulting in improved efficiency, accuracy and economic benefits
  • IoT is one of the platforms of today’s Smart City, and Smart Energy Management Systems. It can also be used to improve crop yield to help feed the world’s growing population.

About Array of Things (AoT):

  • It’s an urban sensing project, a network of interactive, modular sensor boxes that will be installed around city to collect real-time data on the city’s environment, infrastructure, and activity for research and public use.
  • It is expected to provide localised information to the authorities enabling them to act quickly in emergencies and warn citizens of environmental threats.

VoLTE (Voice over Long Term Evolution)

  • It is an Internet Protocol Multimedia Subsystem (IMS) specification which enables a variety of services to operate seamlessly on the network rather than having to switch to different applications for voice or video.
  • Volte offer high definition (HD) quality voice calls, lesser call drops and calls get connected significantly faster, in comparison with standard voice calls over 3G and 2G networks.

5.7.3. FREE SPACE OPTICAL COMMUNICATION

Why in news?

  • X Development LLC, a subsidiary of Google’s parent company Alphabet will supply and deploy two  thousand  cutting-edge   Free
  • Space Optical Communication (FSOC) links for Andhra Pradesh (AP) fiber-grid.
  • AP Fibre Grid project is aimed to establish a highly scalable network infrastructure
  • accessible on a nondiscriminatory basis, to provide on demand, affordable and end-to-end broadband connectivity for all households, institutions & Offices. It is being implemented by Andhra Pradesh State Fibernet Limited
  • X is a research and development facility founded by Google in January 2010.
  • It has been working on several projects including driver-less car, product delivery through flying vehicles, Project Loon, Google glass among other technologies.

What is Free Space Optical Communication?

  • It is an optical communication technology in which data is transmitted by propagation of light in free space allowing optical connectivity.
  • Working of FSO is similar to OFC (optical fiber cable) networks but the only difference is that the optical beams are sent through free air or vaccum instead of glass fiber.
  • It is a Line of Sight (LOS) technology. It consists of an optical transceiver at both ends to provide full duplex (bidirectional) capability.
  • It is capable of sending up to 1.25 Gbps of data, voice, and video communications simultaneously through the air.
  • Advantages: low initial investment, flexible network that delivers better speed than broadband, security due to line of sight operation etc.
  • Challenges: misalignment errors, geometric losses, background noise, weather attenuation losses and atmospheric turbulence.

 

Light-fidelity (LiFi)

  • It is a high speed wireless communications through light emitting diodes (LEDs).
  • It uses both visible and near-visible light for free-space communication.
  • LiFi is not strictly a line-of-sight technologye. data rate is not dependent on the line of sight but on the signal quality at the device.

5.7.4. RFID

Why in news?

  • Recently National Highways Authority of India launched two mobile apps MyFASTag and FASTag Partner to facilitate Electronic Toll Collection. FASTag is a device which uses RFID technology for making toll-payment directly from the prepaid account.

About RFID

  • Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object. A tag can be read from up to several feet away and does not need to be within direct line-of-sight of the reader to be tracked. It is applied for tracking items or as a pass.

Other related technologies

 

  • Near Field Communication (NFC) is a short-range high frequency wireless communication technology that enables the exchange of data between devices over about a 10 cm distance. It is used in credit card related payments, e-booking etc.
  • Barcode scanner detects the light reflected from the barcode. This needs to be kept in range of several inches to several feet to read the code.
  • QR code (Quick Response code)
  •  It’s a two-dimensional (matrix) machine-readable bar code made up of black and white square. This code can be read by the camera of a smartphone. 
  •  It carries information both horizontally and vertically. It has error correction capability and data stored in it can be restored even if it is partially damaged or dirty.
  •   It  is  capable  of  360  degrees  (omni-directional), high speed reading.
  •  QR Code can store up to 7089 digits as compared to conventional bar codes which can store max 20 digits.

Bluetooth technology 

  • It is a high speed low powered wireless technology which uses radio waves to link phones, computers and other
  • network devices over short distance without wires.
  •  Wireless signals transmitted with Bluetooth cover short distances, typically up to 30 feet (10 meters).
  • Bluetooth sends and receives radio waves in a band (frequency band of 2.45GHz ) of 79 different frequencies and can connect up to “eight devices” simultaneously
  • It overcomes the constraints of line of sight and one to one communication as in other mode of wireless communications like infrared.
  • It guarantees security at bit level. When a group of two or more Bluetooth devices are sharing information together, they form a kind of ad-hoc, mini computer network called a piconet.
  •  It removes the problem of radio interference by using a technique called Speed Frequency Hopping. This ensures that the interference won’t take place as each transmitter will be on different frequencies.

5.7.5. TARANG SANCHAR PORTAL

Why in News?

  • The Telecom Department launched a portal – Tarang Sanchar Portal that will allow people to track radiation emitted from mobile towers within a locality.
  • The portal will empower consumers to know about the towers working in a particular area and whether they are compliant to the Electromagnetic field (EMF) emission norms defined by the government.
  • In general, mobile tower emissions rules in India are ten times more stringent than the global norms

About radiation

Energy emitted from a source is generally referred to as radiation. There are two types of radiation:

  • Ionizing radiation is radiation with enough energy to cause chemical changes by breaking chemical bonds. This ionization process results in the formation of two charged particles or ions: the molecule with a net positive charge, and the free electron with a negative charge. This effect can cause damage to living tissue.
  • Examples include heat or light from the sun, microwaves from an oven, X rays from an X-ray tube, and gamma rays from radioactive elements
  • Non-ionizing radiation is the term given to radiation in the part of the electromagnetic spectrum where there is insufficient energy to cause ionization but may have enough e nergy to excite molecules and atoms causing then to vibrate faster.

Example: It   includes   electric  and magnetic   fields, radio waves,microwaves, infrared, ultraviolet, and visible radiation.

Application of Radiation

  • Medical Application: X-Ray, CT, and PET machines use X-ray (X-ray and CT) and Gamma radiation (PET) to produce detailed images of the human body,
  • Industrial Application: to examine welds for defects or irregularities, or examining other materials to locate structural anomalies or internal components.
  • Food irradiation is the process of using radioactive sources to sterilize foodstuffs.
  • As a disinfectant: Ultraviolet light is used to disinfect drinking water in some homes.
  • Pollution Abatement: Radiation is used to help remove toxic pollutants, such as exhaust gases from coal-fired power stations and industry. For example, electron beam radiation.

 

5.7.6. TRAI FAVOURS NET NEUTRALITY

Why in news?

  • Recently, Telecom Regulatory Authority of India (TRAI) has favoured net neutrality.
  • Also, Washington has become first state recently to enact its own net-neutrality rules

Net Neutrality

  • Net Neutrality or Network neutrality is the idea that Internet service providers (ISPs) should treat all data that travels over their networks fairly, without improper discrimination in favour of particular apps, sites or services.

Background

  • The debate on net neutrality in India started from Facebook launching Free Basics and Airtel launching Airtel Zero.
  • These were opposed by IT industry body Nasscom as it violated net neutrality principles by differentiating internet access for certain types of services.

Recommendation

  • Non-Discriminatory treatment: irrespective of sender, receiver protocols used etc.
  • Specialised Service: are exempted from neutrality framework such as tele-surgery, Voice over Internet Protocol (VoIP) and IPTV services etc.
  • Content delivery Network (CDN) platform: should not be included within the scope of any restrictions on non-discriminatory treatment
  • Reasonable traffic Management practices: by framing appropriate regulations time to time.
  • Regulatory Body: TRAI suggested DoT may establish a multi-stakeholder body with framework for collaborative mechanism among the stakeholders for monitoring the net-neutrality.

VoIP

  • Voice over Internet Protocol (VoIP), is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.

CDN platform

  • CDN is a system of servers, deployed at the edge of (or within) the terminating network of an access provider, that content provider can use to distribute their content.

 

5.8. NATION-WIDE HACKATHON

#OPENGOVDATAHACK LAUNCHED

Why in news?

 

  • Recently, Ministry for Electronics & Information Technology launched nation-wide hackathon #OpenGovDataHack with an aim to support and showcase great ideas or talent and enable them to develop apps or infographics by use of Open Government Data.

Background

 

    • It is a platform which provides
      • The principle of data sharing and accessibility is based on openness, flexibility, transparency, quality, security and machine-readability.
        • The policy also facilitates the access to Government shareable data readable and machine readable form though an all India network within the framework of various policies, acts and rules.
          • The Policy aims to provide an enabling provision and platform for providing proactive and open access to the data generated through public funds available with various departments of Government.#OpenGovDataHack is an on-site 24Hrs Challenge which will be held at 7 centres. The participating teams will be required to submit the App prototype and info-graphics, out ofthese selected apps will be taken up for further development and the winner will be awarded. The theme of the Hackathon was“Drinking Water & Sanitation, Transport, Education, Crime and Health”.Open Government Data (OGD) Platform
  • OGD has been set up by the National Informatics Centre (NIC) in accordance with National Data Sharing and Accessibility Policy (NDSAP) 2012.

National Data Sharing and Access Policy, 2012

 

  • The Policy aims to provide an enabling provision and platform for providing proactive and open access to the data generated through public funds available with various departments of Government.
  • The policy also facilitates the access to Government shareable data readable and machine readable form though an all India network within the framework of various policies, acts and rules.
  • The principle of data sharing and accessibility is based on openness, flexibility, transparency, quality, security and machine-readability.
  • It is a platform which provides
  • single point access to open data sets, it also provides web based workflows to departments so that they can publish their datasets through a predefined metadata.
  •   better  visualization  tools,  better  user experience and efficient discoverability of resources.
  • Community participation through blogs, info-graphics, visualizations, mobile and web apps etc.
  • OGD platform is currently being supplemented by various sectors such as health and family welfare, home affairs, agriculture, rajya sabha, statistics and programme etc.

 

5.9. CYBER ISSUES

5.9.1. NIC-CERT

Why in news?

Government inaugurated the new body National Information Centre-Computer Emergency Response Team (NIC-CERT) to prevent and predict cyber-attacks on government utilities.

About National Information Centre

  • It comes under Ministry of Electronics and IT (MeitY) and has a key role in e-governance at the national, state and district levels. Almost all Indian-government websites are developed and managed by NIC

Background

  • In May    2017,  a   ransomware called Wannacry, infected more than 100,000 computers all over the world.
  • Indian Computer Emergency Response Team (CERT-In) in June, 2017 issued an advisory about Petya or Petrwrap, in the series of ransomware attacks affecting computer systems across the world whose spreading mechanism were similar to attack such as EternalBlue, Psexec, Windows Management Instrumentation.

Effect on India

Government steps to tackle cybercrime

Setting up NIC-CERT

  • NIC-CERT is a dedicated body to detect, prevent and mitigate the impact of cyber-attacks, by monitoring data across the NIC platform, including communication between all the levels of government and between governments to citizens.
  • It will help in real time data monitoring and operate in close coordination and collaboration with sectoral CERTs and CERT-IN.
  • Securing Digital India Initiative: NIC-CERT will help in securing digital initiative of government by preventing the threats and vulnerabilities arising due to cyberspace.
  • Malware: Malware is short for malicious software, meaning software that can be used to compromise computer functions, steal data, bypass access controls, or otherwise cause harm to the host computer. Malware is a broad term that refers to a variety of malicious programs.
  • Bot: Bots are software programs created to automatically perform specific operations. While some bots are created for relatively harmless purposes (video gaming, internet auctions, online contests, etc), it is becoming increasingly common to see bots being used maliciously.
  • Spyware: Spyware is a type of malware that functions by spying on user activity without their knowledge. Spyware spreads by exploiting software vulnerabilities, bundling itself with legitimate software, or in Trojans.
  • Ransomware: It is a form of malware that essentially holds a computer system captive while demanding a ransom. The malware restricts user access to the computer either by encrypting files on the hard drive or locking down the system anddisplaying messages that are intended to force the user to pay the malware creator to remove the restrictions and regain access to their computer.
  • Trojan Horse: A Trojan horse, is a type of malware that disguises itself as a normal file or program to trick users into downloading and installing malware. A Trojan can give a malicious party remote access to an infected computer.
    • Virus: A virus is a form of malware that is capable of copying itself and spreading to other computers. Viruses can be used to steal information, harm host computers and networks, create botnets, steal money, render advertisements, and more.

     

    • Worm: Computer worms are among the most common types of malware. They spread over computer networks by exploiting operating system vulnerabilities. Worms typically cause harm to their host networks by consuming bandwidth and overloading web servers. Worms often spread by sending mass emails with infected attachments to users’ contacts.

     

    Two recent initiatives

    Cyber Surakshit Bharat Initiative

     

    • It has been launched by Ministry of Electronics and Information Technology (MeitY), in association with National e-Governance Division (NeGD) and industry partners, to strengthen Cybersecurity ecosystem in India.

     

    • It is first public-private partnership of its kind and will leverage the expertise of the IT industry in cybersecurity.

     

    • The founding partners include leading IT companies such as Microsoft, Intel, WIPRO. Its knowledge partners include Cert-In, NIC, NASSCOM and consultancy firms Deloitte and EY.

     

    • It will be operated on three principles of Awareness, Education and Enablement.

     

    • It aims to spread awareness about cybercrime and build capacity of Chief Information Security Officers (CISOs) and frontline IT staff across all government departments.

     

    Global Centre For Cybersecurity

     

    • It has been launched by the World Economic Forum (WEF) with headquarter in Geneva.

     

    • It will function as an autonomous organization under WEF. It will serve as laboratory and early-warning think tank for future cybersecurity scenarios and help to build a safe and secure global cyberspace.

     

    • Its aim is to establish first global platform for governments, businesses, experts and law
    • enforcement agencies to collaborate on cybersecurity challenges and work towards an appropriate and agile regulatory framework on cybersecurity.Global Conference on Cyber Space (GCCS) 
      • Theme: “Cyber4All: A Secure and Inclusive Cyberspace for Sustainable Development”.

       

      • Aim: to establish internationally agreed ‘rules of the road’ for behavior in cyberspace, and create a more focused and inclusive dialogue between all those with a stake in the internet on how to implement them.

       

      • It has set up an institutional mechanism – Global Forum on Cyber Expertise – to enhance capacity building, share best practices and expertise on cyber capacity.

Section 69B of IT Act, 2000, talks about the power to authorize to monitor and collect traffic data or information through any computer resource for Cyber Security.

 

5.9.2. BUDAPEST CONVENTION

Why in news?

Ministry of home affairs recently called for signing of the Budapest Convention on cybercrime owing to the surge in cyber-crime.

About Budapest convention on cybercrime

  • This convention of the council of Europe is the only binding international instrument on this issue.
  • It is the first international treaty on crimes committed via the Internet and other computer networks and deals with issues such as infringements of copyright, computer-related fraud, child pornography and violations of network security.
  • It aims to pursue a common criminal policy, especially by adopting appropriate legislation and fostering international police as well as judicial co-operation.
  • It provides for procedural law tools to make investigation of cybercrime and securing of e-evidence in relation to any crime more effective.
  • The Convention has 56 members, including the US and the UK.

 

Steps taken by Government

  • Information Technology Act, 2000(amended in 2008) provides a legal framework for transactions carried out by means of electronic data interchange and other means of electronic communication.
  • Indian Computer Emergency Response Team (CERT-in): established to enhance the security of India’s Communications and
  • Information Infrastructure through proactive action and effective collaboration. CERT-fin has also been launched exclusively for financial sector.
  • National Cyber Security Policy 2013: proposes to set up different bodies to tackle various levels of threats, along with a national nodal agency, to coordinate all matters related to cyber security.
  • National Critical Information Infrastructure Protection Centre (NCIIPC) to battle cyber security threats in strategic areas such as air control, nuclear and space. It will function under the National Technical Research

 

Organisation (NTRO)

  • National cyber coordination centre (NCCC) is being set up to scan internet traffic coming into the country and provide real time situational awareness and alert various security agencies.
  • Indian cyber-crime coordination centre (I4C) and Cyber Warrior Police force has been established under newly created Cyber and Information Security (CIS) Division (under Ministry of Home Affairs) to tackle internet crimes such as cyber threats, child pornography and online stalking.
  • Digital Army Programme: a dedicated cloud to digitize and automate processes, procedures and services for the Indian Army, launched as a part of Digital India. This is similar to Meghraj, the national cloud initiative.

5.9.3. DIGITAL POLICE PORTAL UNDER CCTNS

Why in news?

 

  • Recently Home Minister launched a digital police portal under the CCTNS project.

More on news

  • CCTNS has originally aimed at maintenance of crime and criminal records of individuals through a national database, and delivery of web based police related services to all citizens.
  • Digital Police portal is a SMART policing initiative of government with aim to provide Services to Citizens at a National level
  •   Report a Crime
  •  Request for person verification o Links to State Citizen Portal
  • The access has been restricted only to authorized officials to protect Privacy of individual and concerns of National security.
  • The portal also generates various thematic reports of trends of incidence of crime across the country to facilitate policy analysis and undertaking targeted interventions.

Crime and Criminal Tracking Network and Systems (CCTNS)

  • It is a project of MHA launched in 2009 which aims to:
  • Provide Citizen Centric Police Services via a web portal.
  • Pan India search on National database of Crime & Criminal records.
  • Crime and Criminal reports at State and Centre.
  • Computerization of Police Processes.

Inter-operable Criminal Justice System (ICJS)

  • It is a component of CCTNS
  • ICJS aims to integrate the CCTNS project with the e-courts and e-prisons databases initially and later to all components of criminal justice system.

 

5.9.4. CYBER- SECURITY INDEX

Why in news?

  • India is ranked a high 23rd out of 165 nations in The Global Cybersecurity Index (GCI).

Background

  • The second Global Cybersecurity Index (GCI),released by the International Telecommunication Union (ITU), said only about half of all countries have a cybersecurity strategy or are in the process of developing one
  • The top 3 most committed countries to cybersecurity are Singapore United States and Malaysia.
  • India has been listed in the “maturing” category, which refers to 77 countries that have developed complex commitments to cybersecurity and engage in cybersecurity programmes and initiatives.

About ITU

  • ITU, based in Geneva, Switzerland, is the leading UN agency for ICT.
  • As the global focal point for governments and the private sector, ITU’s role in helping the world communicate spans 3 core sectors: radio communication, standardization and development.
  • ITU also organizes TELECOM events and was the lead organizing agency of the World Summit on the Information Society.

 

5.10.  WORLD  CONGRESS ON INFORMATION TECHNOLOGY (WCIT)

Why in news?

Recently World Congress on Information Technology (WCIT) 2018 or the ‘Olympics of IT’ was held in Hyderabad for the first time in India.

More about the news

  • The theme of this edition of conference was‘Future Enterprises.’
  • WCIT is a biennial event and considered as the biggest event of its kind. It aims to provide single platform to IT experts, policy and decision makers and Government officials from all over the world together to discuss various challenges and and possible solutions to them.
  • It is unique in its global perspective on ICT issues and its ability to draw users, providers, media and academia from around the world.
  • It was first held in 1978 since then held after every two years. The 2014 WITC 2016 edition was held in Brasilia, Brazil.

NANO Science and NANO Technology

1.1 INTRODUCTION

  • Nano is Greek means “dwarf”. It refers to dimension in the order of magnitude of 10-9. A Nanometer denoted by the symbol ‘nm’ is a unit of length in metric system equal to one- billionth of a meter.The term Nanotechnology was coined by Tokyo Science University Professor Norio Taniguchi and its technological significance was promoted by Dr. K. Eric
  • Nanotechnology proposes construction of new nanoscale devices that   possess extraordinary properties as they are lighter, smaller and less expensive and more precise.Materials reduced to Nanoscale can show properties compared to what they exhibit on a macro- scale, enabling unique applications. For instance Copper which was malleable at macro scale loses its property at the new scale.   Inert material like Platinum at macro scale becomes catalyst at Nanoscale. A stable material like Aluminium at macro scale becomes combustible at Nanoscale. Insulator material like Silicon at the macro scale becomes a good conductor at Nanoscale.

1.2 DEFINITIONS

  • Nano Science is an emerging area of science which concerns itself with the study of atoms, molecules & objects whose size is on nanometerscale (1 to 100m). Nanotechnology deals with structures sized between 1 to 100 nanometer in at least one dimension, and     involve developing materials or devices within that size.

1.3 PROCESS AND RAW MATERIALS

  • The two methods used in Nanotechnology are Top-down and Bottom-up approaches. Inthetop-down approach, Nano objects are constructed fromlarger entities. It is expensive andtime  consuming.  The bottom-up technique builds larger structure by linking atom by atom using special molecular assemblers.

Nano materials are classified into two types

  • Organic consisting  of  Carbon Inorganic Nano materials consisting of metals and their The vastly increased ratio of their surface area to volume lead to altering physical, thermal and catalyst properties of Nanomaterials.

1.3.1  Carbon Nano Tubes (CNT)

  • Carbon Nanotubes are allotropes of carbon with cylindrical nanostructure. Graphene (graphite) sheets are rolled to form cylindrical  Their name is derived from their long hollow structure with the walls formed by 1 atom thick sheets of carbon called graphene. These sheets are rolled into specific discreetangles. The combination of rolling angle and radius determines whether the nanotube is a metal or semiconductor. There could also be single walled nanotubes (SWNT) and multi walled nanotubes (MWNT).

1.3.1.1 Unique properties

Strength

  • CNTs are the strongest & stuffiest material on Earth in terms of tensile strength (UTS). UTS means maximum strength that a material can withstand while being stretched or pulled. It is hundred times stronger, yet six times lighter than

Electrical Conductance property

  • CNTs are ideal components for electrical circuits. They can carry thousand times more electricity compared to same dimension of copper/ silver wire.

Thermal Stability

  • CNTs are very good thermal conductors along the tube axis, but are good insulators laterally to the tube.

Temperature Stability

  • CNTs are stable up to 2800° C in vacuum.

1.3.2 Nano composites

  • Nano composites are materials created by        introducing nanoparticles / CNT into the matrix of microscopic sample material and the resulting Nano composite may exhibit drastically enhanced

1.3.3 Nano sensors

  • Nano sensors are biological / chemical sensors used to convey information about nanoparticles to the macroscopic

1.3.4 Nano crystals

  • Nano crystals are crystalline particles with at least 1 dimension measuring less than 1000nm. Nano crystals are used by the manufactures of filters that refine crude oil into diesel fuel. Nano- sized crystals a term being registered trademark of Elenpharma International.

1.4 APPLICATION

  • Electronics

  • Nanotubes are used to make tiny transistors of Carbon Nanotube that help in developing Nano circuits. This has led to further miniaturization of computers making them even faster and compact. Use of CNT has strongly increased the data storage density of hard disk making terabyte range possible. Replacing CRT by CNT will lead to production of displays with low energy consumption. CNT can be used as emitters with extremely high intensity for field emission displays.

1.4.2 Automobile and Aviation Industry

  • Lighter and stronger CNTs are of immense use to aircraft manufactures leading to increased performance. CNTs are used in making Nano satellites in space crafts.Usage of lighter CNT makes the aircrafts fuel efficient and the size of equipments are also reduced.
  • Nanotechnology will help in manufacturing stronger; yet lighter anti-scratch, rust-proof, automobile components. The increase in surface area of internal combustion engine due to use of CNT will make them fuel-efficient and reduce exhaust of Combustion Engine will also benefit from parts that are more heat resistant.Windshields / front window of automobile provided with CNT can be made to de-frost automatically by passing current through them. Use of CNT will increase the conversion efficiency of solar panels.

1.4.3  Textile Industry

  • Nano fibres make clothes water and stain repellent.Nano fibres will be stronger than the strongest natural fibre spider silk. It can be used to make strong bullet proof jackets. Moreover fluorescent Nano fibres will provide different colours to the fabric.

1.4.4  Health and Medicine

  • Nanotechnology application lead to a new branch of medicine called Nano medicine.Nano medicine helps in diagnosis of a disease, drug delivery, treatment and tissue engineering.

Diagnosis

  • Nano medicine has resulted in the formation of Nano scale diagnostic devices which are able to detect cancer, bacterial, viral infection. One such devices is Lab-on-a -chip through which blood or any tissue sample is made to pass through, then this device blocks defective part of abnormal cells by allowing normal cells to pass through. Lab-on-a-Chip requires extremely small fluid volume to less than a Pico litre (10-12l). This low consumption leads to less wastage and requires less volume of sample for diagnosis and lowers reagent cost. At the same time diagnosis / analysis is faster.
  • Nanotubes can be used in the formation of Nano-sized drugs which will help in lowering overall drug consumption and side effects by depositing active agent at specific places in the body, thereby ensuring drug delivery with cell precision. This will improve the bio-availability of a drug which refers to the extent of drug absorption. This highly selective approach reduces cost and human suffering.

Cancer diagnosis and Treatment

  • Nanotubes can locate the elements of cancer cells using gold Nano shells. Nano shells target to bind cancerous cells by conjugating antibodies to Nano shells surface by irradiating the area of tumour with an infrared laser which pass through flesh without heating it. The Gold Nano shell is significantly heated to cause death of cancer cells.

Tissue re-engineering

  • Nanotube can help to repair damaged tissue through tissue engineering making healing faster. They use scaffold (Bio- degradable polymer such as polycaprolactone coated with collagen to promote cell attachment) similar purpose as extracellular  matrix  in  natural tissue.

1.4.5 Nano Robotics

  • This is the technique of creating robots / machines close to Nanoscale. These Nano – sized robots can navigate through human body, transport important molecules,   manipulate microscope objects  and communicate with the physician by way of miniature.
  • These computer controlled Nano robots can be used in cancer detection and treatment. There is no depressing therapy as in the case of Radiation therapy which actually ends up destroying healthy cells than the cancerous ones.
  • Nano robots will be able to distinguish between maligned or normal cells by checking their surface antigens. Thus is accomplished by the use of chemotactic sensors, which are keyed to specific enzymes on target

1.4.6 Environment

  • Nano filtration under NT can be helpful for waste water treatment, producing safe and clean drinking water. It is used in desalination of water. The extremely small size of pores enables filtration of bacteria, protozoa and other infectious agents.
  • Nano – particles of Iron oxide are extremely effective at binding and removing Arsenic from ground water, Lanthanum nanoparticles absorb phosphate from aqueous environments. Applying these in ponds effectively removes available phosphates as a result, prevents growth of algae. This will benefit commercial fish ponds which spend huge amount of money to remove

1.4.7 Agriculture

  • Nanotube has the potential to revolutionize agricultural sector by becoming an integral part of Precision farming and through Rapid Disease Detection and enhancing the ability of plants to absorb nutrients. Precision farming is site-specific farm management to maximise output (crop yield) and minimise input (i.e. fertilizers, pesticides, herbicides) through monitoring environment variables and applying targeted action. Precision farming makes use of PC, GPS, remote sensing devices to measure highly localized environmental conditions, thus determining whether the crops are growing at maximum capacity and precisely identifying the nature and location of problems. One of the major role Nanotechnology enabled devices play will be the increased use of Nano sensors linked to GPS for real time monitoring. Nano sensors distributed throughout the field can monitor soil conditions and crop growth. Wireless sensors are already being used in certain parts of USA and Australia. By using centralised data to determine soil conditions        and     plant development, fertilizers and chemicals, water use can be streamlined to lower production cost potentially increasing production.
  • Technologies such as Encapsulation and controlledRelease method have revolutionized the use of pesticides and herbicides. Nano- emulsion/suspension of nanoparticles which can be either water/oil-based contain uniform suspension of pesticide/ herbicidal nanoparticles. These can be easily incorporated in various media such as gels, creams, liquids etc. It can be  used in the preservation of harvested products.
  • Thus networked Nano sensors in precision farming will help in crop scouting, processing integration of spatial data through GIS which will help in decision-making,weed control, pest-control fertilizer application site-specific, precise and  effective.

 

1.4.8 Consumer Goods

Packaging and food safety

  • Nanotechnology will help develop smart packaging to optimize product shelf-life. A Nano composite coating process could improve food packing by placing anti-microbial agents directly on the surface of coated film. Nano composites could modify the permeation behaviour of foils by increasing their                 barrier properties including mechanical, chemical, microbial agents also improving heat resistant properties like silicate properties can reduce entry of oxygen and prevent exit of moisture.Silver nanoparticles import anti- microbial, anti-fungal, anti-viral properties to the packaged food material. NT can help detect contamination of food also. For example, Agro Micron Company has developed a Nano bioluminescent detection spray which contains a luminescent protein that has been engineered to bind to the surface of microbes such as Salmonella, E-coli.When binds it emits a visible glow, thus allow easy detection of contaminated food. The more intense the glow is, higher the bacterial contamination.

Household Equipment

  • Most prominent application of NT in the household is self- cleaning / easy to clean surface on ceramics or glasses. Nano ceramic particles have improved the smoothness and heat resistance of common house-hold materials such as flat iron.

Cosmetics

  • NT can be used in sunscreen creams importing them long- term stability and protection against UV rays. It can also deliver Vitamin E to the skin. E.g. Titanium oxide and Zinc.

1.5 IMPLICATIONS OF NT

  • Significant environment health and safety, ethical and social issues might arise with the development in NT. The potential risks of NT are

1.5.1  Environmental issues

  • NT may lead to Nano pollution, which includes all the waste generated by manufacturing of nanomaterials and the Nano devices. Due to its extremely small size, Nano waste can float in the air and might easily penetrate animal and plant cells causing undesirable effects.

1.5.2 Health Issues

  • Nanoparticles being slowly degradable may accumulate inside the body and because of their large surface area may get absorbed into the surface of tissues which may affect regulation mechanism of enzymes and their proteins

1.5.3 Social issues/ Nano ethics

  • Nanotechnology could worsen the division of rich and poor by creating Nano-divide. NT has the potential to determine the international relations through Nano-arms race as there is possibility of military applications of NT in biological and Chemical warfare.

1.5.4  Grey goo

  • It is specific risk associated with speculative vision of molecular NT. It is hypothetical end- of-the world scenario involving molecular NT in which out-of- control self-replicating robots consumer all matter on earth while building more of themselves a scenario known as ecophagy or eating the environment.

1.6 INDIA’S POSITION IN NANOTECHNOLOGY

  • India started its Nanoscience and Nano technology development program under its 10th 5 year plan and funds worth $250 million     have been allocated for research & development.

1.6.1  Indian Initiatives:

  • In India, a vision group headed by Prof C.N.R Rao (Chairman of Indian Science Advisory Council) has been entrusted with the task of formulating the NT policy $ 250 million amount has been allocated for the research and development activities in Nano science and Nanotechnology.
  • Rao’s work on Nanotubes through which junction Nanotubes were developed at Jawaharlal Nehru centre for Advance Scientific Research, Bengal found earlier applications in IBM’s efforts to design world’s transistor. Indian Institute of Science (IISc), Bengaluru & IIT Mumbai currently leads the country’s effort in Nanotubes.
  • The regional government of Karnataka is eager to promote Bengaluru as a global hub for NT as in the past it has promoted it as software hub.Sabeer Bhatia the Hotmailco-founder has proposed to build a Nano city in Chandigarh which may be regarded as the second Silicon Valley in

INTELLECTUAL PROPERTY RIGHTS

  • 12.1 Intellectual Property Rights According To World Trade Organization
  • 12.1.1What are Intellectual Property Rights?
    • Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of

(i) Copyright and rights related to copyright

  • The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.
  • Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are the rights of  performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main social purpose of protection of copyright and related rights is to encourage and reward creative work.

(ii) Industrial property.

  • One area can be characterized as the protection of distinctive signs, in particular trademarks (which distinguish the goods or services of one undertaking from those of other undertakings) and geographical indications (which identify a good as originating in a place where a given characteristic of the good is essentially attributable to its geographical origin).
  • The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect consumers, by enabling them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in question continues to be distinctive.
  • Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade
  • The social purpose is to provide protection for the results of investment in the development of new technology, thus giving the incentive and means to finance research and development activities.
  • A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and
  • The protection is usually given for a finite term (typically 20 years in the case of patents).
  • While the basic social objectives of intellectual property protection are as outlined above, it should also be noted that the exclusive rights given are generally subject to a number of limitations and exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right holders and of users.

12.1.2  Intellectual property: protection and enforcement

  • The WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), negotiated in the 1986 – 94 Uruguay Round, introduced intellectual property rules into the multilateral trading system for the first time.

Origins: into the rule-based trade system

  • Ideas and knowledge are an increasingly important part of trade. Most of the value of new medicines and other high technology products lies in the amount of invention, innovation, research, design and testing involved. Films, music recordings, books, computer software and on-line services are bought and sold because of the information and creativity they contain, not usually because of the plastic, metal or paper used to make them. Many products that used to be traded as low- technology goods or commodities now contain a higher proportion of invention and design in their value — for example brandnamed clothing or new varieties of plants.
  • Creators can be given the right to prevent others from using their inventions, designs or other creations — and to use that right to negotiate payment in return for others using them. These are “intellectual property rights”. They take a number of forms. For example books, paintings and films come under copyright; inventions can be patented; brandnames and product logos can be registered as trademarks; and so on. Governments and parliaments have given creators these rights as an incentive to produce ideas that will benefit society as a
  • The extent of protection and enforcement of these rights varied widely around the world; and as intellectual property became more important in trade, these differences became a source of tension in international economic relations. New internationally-agreed trade rules for intellectual property rights were seen as a way to introduce more order and predictability, and for disputes to be settled more
  • The Uruguay Round achieved that. The  WTO’s TRIPS Agreement is an attempt to narrow the gaps in the way these rights are protected around the world, and to bring them under common international rules. It establishes minimum levels of protection that each government has to give to the intellectual property of fellow WTO members. In doing so, it strikes a balance between the long term benefits and possible short term costs to society. Society benefits in the long term when intellectual property protection encourages creation and invention, especially when the period of protection expires and the creations and inventions enter the public domain. Governments are allowed to reduce any short term costs through various exceptions, for example to tackle public health problems. And,  when there are trade disputes over intellectual property rights, the WTO’s dispute settlement system is now available.

The agreement covers five broad issues :

  • how basic principles of the trading system and other international intellectual property agreements should be applied
  • how to give adequate protection to intellectual property rights
  • how countries should enforce those rights adequately in their own territories
  • how to settle disputes on intellectual property between members of the WTO
  • special transitional arrangements during the period when the new system is being

Basic principles: national treatment, MFN, and balanced protection

  • As in GATT and GATS, the starting point of the intellectual property agreement is basic principles. And as in the two other agreements,  non- discrimination   features prominently: national treatment (treating one’s own nationals and foreigners equally), and most- favoured nation treatment (equal treatment for nationals of all trading partners in the WTO). National treatment is also a key principle in other intellectual property agreements outside the WTO.
  • The TRIPS Agreement has an additional important principle: intellectual property protection should contribute to technical innovation and the transfer of technology. Both producers and users should benefit, and economic and social welfare should be enhanced, the agreement says.

How to protect intellectual property: common ground-rules

  • The second part of the TRIPS agreement looks at different kinds of intellectual property rights and how to protect them. The purpose is to ensure that adequate standards of protection exist in all member countries. Here the starting point is the obligations of the main international agreements of  the World Intellectual Property Organisation (WIPO)  that already existed before the WTO was created:
  • the Paris Convention  for the Protection of Industrial Property (patents, industrial designs, etc) the Berne Convention for the Protection    of   Literary and

Artistic Works (copyright).

  • Some areas are not covered by these conventions. In some cases, the standards of protection prescribed were thought inadequate. So the TRIPS agreement adds a significant number of new or higher standards.

12.1.3  Copyright

  • The TRIPS agreement ensures that computer programs will be protected as literary works under the Berne Convention and outlines how databases should be protected.
  • It also expands international copyright rules to cover rental rights. Authors of computer programs and producers of sound recordings must have the right to prohibit the commercial rental of their works to the public. A similar exclusive right applies to films where commercial rental has led to widespread copying, affecting copyright-owners’ potential earnings from their films.
  • The agreement says performers must also have the right to prevent unauthorized recording, reproduction and broadcast of live performances (bootlegging) for no less than 50 years. Producers of sound recordings must have the right to prevent the unauthorized reproduction of recordings for a period of 50 years.

12.1.4  Trademarks

  • The agreement defines what types of signs must be eligible for protection as trademarks, and what the minimum rights conferred on their owners must be. It says that service marks must be protected in the same way as trademarks used for goods. Marks that have become well-known in a particular country enjoy additional protection.

12.1.5 Geographical indications

  • A place name is sometimes used to identify a product. This “geographical indication” does not only say where the product was made. More importantly, it identifies the product’s special characteristics, which are the result of the product’s
  • Well-known examples include “Champagne”, “Scotch”, “Tequila”, and “Roquefort” cheese. Wine and spirits makers

are particularly concerned about the use of place-names to identify products, and the TRIPS Agreement contains special provisions for these products. But the issue is also important for other types of goods.

  • Using the place name when the product was made elsewhere or when it does not have the usual characteristics can mislead consumers, and it can lead to unfair competition. The TRIPS Agreement says countries have to prevent this misuse of place names.
  • For wines and spirits, the agreement provides higher levels of protection, i.e. even where there is no danger of the public being misled.
  • Some exceptions are allowed, for example if the name is already protected as a trademark or if it has become a generic term. For example, “cheddar” now refers to a particular type of cheese not necessarily made in Cheddar, in the UK. But any country wanting to make an exception for these reasons must be willing to negotiate with the country which wants to protect the geographical indication in question.
  • The agreement provides for further negotiations in the WTO to establish a multilateral system of notification and registration of geographical indications for wines. These are now part of the Doha Development Agenda and they include spirits. Also debated in the WTO is whether to negotiate extending this higher level of protection beyond wines and

12.1.6  Industrial designs

  • Under the TRIPS Agreement, industrial designs must be protected for at least 10 years. Owners of protected designs must be able to prevent the manufacture, sale or importation of articles bearing or embodying a design which is a copy of the protected

12.1.7  Patents

  • The agreement says patent protection must be available for inventions for at least 20 Patent protection must be available for both products and processes, in almost all fields of technology. Governments can refuse to issue a patent for an invention if its commercial exploitation is prohibited for reasons of public order or morality. They can also exclude diagnostic, therapeutic and surgical methods, plants and animals (other than microorganisms), and biological processes for the production of plants or animals (other than microbiological processes).
  • Plant varieties, however, must be protectable by patents or by a special system (such as the breeder’s rights provided in the conventions of UPOV — the International Union for the Protection of New Varieties of Plants).
  • The agreement describes the minimum rights that a patent owner must enjoy. But it also allows certain exceptions. A patent owner could abuse his rights, for example by failing to supply the product on the market. To deal with that possibility, the agreement says governments   can  issue “compulsory licences”, allowing a competitor to produce the product or use the process under licence. But this can only be done under certain conditions aimed at safeguarding the legitimate interests of the patent-holder.
  • If a patent is issued for a production process, then the rights must extend to the product directly obtained from the process. Under certain conditions alleged infringers may be ordered by a court to prove that they have not used the patented
  • An issue that has arisen recently is how to ensure patent protection for pharmaceutical products does not prevent people in poor countries from having access to medicines — while at the same time maintaining the patent system’s role in providing incentives for research and development into new medicines. Flexibilities such as compulsory licensing are written into the TRIPS Agreement, but some governments were unsure of how these would be interpreted, and how far their right to use them would be respected.
  • A large part of this was settled when WTO ministers issued a special declaration at the Doha Ministerial Conference in November 2001. They agreed that the TRIPS Agreement does not and should not prevent members from taking measures to protect public health. They underscored countries’ ability to use the flexibilities that are built into the TRIPS Agreement. And they agreed to extend exemptions on pharmaceutical patent protection for least-developed countries until 201 On one remaining question, they assigned further work to the TRIPS Council — to sort out how to provide extra flexibility, so that countries unable to produce pharmaceuticals domestically can import patented drugs made under compulsory licensing. A waiver providing this flexibility was agreed on 30 August 2003.

Integrated circuits layout designs

  • The basis for protecting integrated circuit designs (“topographies”) in the TRIPS agreement is the Washington Treaty on Intellectual Property in Respect of Integrated Circuits, which comes under the World Intellectual Property This was adopted in 1989 but has not yet entered into force. The TRIPS agreement adds a number of provisions: for example, protection must be available for at least 10 years.

Undisclosed information and trade secrets

  • Trade secrets and other types of “undisclosed information” which have commercial value must be protected against breach of confidence and other acts contrary to honest commercial practices. But reasonable steps must have been taken to keep the information secret. Test data submitted to governments in order to obtain marketing approval for new pharmaceutical or agricultural chemicals must also be protected against unfair commercial use./li>

Curbing anti-competitive licensing contracts

  • The owner of a copyright, patent or other form of intellectual property right can issue a licence for someone else to produce or copy the protected trademark, work, invention, design, etc. The agreement recognizes that the terms of a licensing contract could restrict competition or impede technology transfer. It says that under certain conditions, governments have the right to take action to prevent anti-competitive licensing that abuses intellectual property rights. It also says governments must be prepared to consult each other on controlling anti- competitive

Enforcement: tough but fair

  • Having intellectual property laws is not enough. They have to be enforced. This is covered in Part 3 of TRIPS. The agreement says governments have to ensure that intellectual property rights can be enforced under their laws, and that the penalties for infringement are tough enough to deter further violations. The procedures must be fair and equitable, and not unnecessarily complicated or costly. They should not entail unreasonable time-limits or unwarranted delays. People involved should be able to ask a court to review an administrative decision or to appeal a lower court’s ruling.
  • The agreement describes in some detail how enforcement should be handled, including rules for obtaining evidence, provisional measures, injunctions, damages and other penalties. It says courts should have the right, under certain conditions, to order the disposal or destruction of pirated or counterfeit goods. Wilful trademark counterfeiting or copyright piracy on a commercial scale should be criminal offences. Governments should make sure that intellectual property rights owners can receive the assistance of customs authorities to prevent imports of counterfeit and pirated goods.

12.1.8  Technology transfer

  • Developing countries in particular, see technology transfer as part of the bargain in which they have agreed to protect intellectual property rights. The TRIPS Agreement includes a number of provisions on this. For example, it requires developed countries’ governments to provide incentives for their companies to transfer technology to least-developed

Transition arrangements: 1, 5 or 11 years or more

  • When the WTO agreements took effect on 1 January 1995, developed countries were given one year to ensure that their laws and practices conform with the TRIPS agreement. Developing countries and (under certain conditions) transition economies were given five years, until 2 Least-developed countries had 11 years, until 2006 — now extended to 2013 in general, and
    to  2016  for  pharmaceutical patents  and  undisclosed information.
  • If a developing country did not provide product patent protection in a particular area of technology when the TRIPS Agreement became applicable to it (1 January 2000), it had up to five additional years to introduce the protection. But for pharmaceutical and agricultural chemical products, the country had to accept the filing of patent applications from the beginning of the transitional period (i.e. 1 January 1995), though the patent did not need to be granted until the end of this period. If the government allowed the relevant pharmaceutical or agricultural chemical to be marketed during the transition period, it had to — subject to certain conditions — provide an exclusive marketing right for the product for five years, or until a product patent was granted, whichever was shorter.
  • Subject to certain exceptions, the general rule is that obligations in the agreement apply to intellectual property rights that existed at the end of a country’s transition period as well as to new ones.

Types of intellectual property

The areas covered by the TRIPS Agreement

  • Copyright and related rights Trademarks, including service marks
  • Geographical indications Industrial designs
  • Patents
  • Layout-designs (topographies) of integrated circuits
  • Undisclosed information, including trade secrets

What’s the difference?

  • Copyrights, patents, trademarks, etc apply to different types of creations or inventions. They are also treated
  • Patents, industrial designs, integrated circuit designs, geographical indications and trademarks have to be registered in order to receive protection. The registration includes a description of what is being protected — the invention, design, brandname, logo, etc — and this description is public information.
  • Copyright and trade secrets are protected automatically according to specified conditions. They do not have to be registered, and therefore there is no need to disclose, for example, how copyrighted computer software is constructed.
  • Other conditions may also differ, for example the length of time that each type of protection remains in
  • WORLD INTELLECTUAL PROPERTY ORGANISATION

What is WIPO?

  • WIPO is the global forum for intellectual property services, policy,   information      and cooperation. We are a self- funding agency of the United Nations, with 188 member
  • Our mission is to lead the development of a balanced and effective international intellectual property (IP) system that enables innovation  and  creativity  for  the benefit  of  all.  Our  mandate, governing bodies and procedures are   set   out   in   the WIPO Convention,  which  established WIPO in 1967.

Quick facts

12.2.1  Intellectual Property According to WIPO

What is Intellectual Property?

  • Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.
  • IP is protected in law by, for example, patents, copyright and t rademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public
    interest, the IP system aims to foster an environment in which creativity and innovation can flourish.

WIPO/PCT SYSTEM

  • The International Patent System
    • Seek patent protection in multiple countries by filing one international application. The PCT system:
      • postpones the major costs associated with international patent protection;
      • provides with a strong basis for patenting decisions;
      • is used by the world’s major corporations, research institutions and
  • The International Trademark System
    • Register trademarks in multiple countries by filing one international application. The Madrid system:
      • saves time and money;
      • covers 113 countries;
      • enables to manage and renew your marks through one centralized system.
  • INTERNATIONAL DESIGN SYSTEM
    • Register industrial designs in multiple countries with a minimum of formalities and expense. The Hague system:
      • replaces multiple registrations with just one;
      • lets one to register up to 100 industrial designs with one form;
      • makes management of registered designs easier — record changes or renewals through a single

12.2.10  Resolving IP disputes

  • WIPO’s international Alternative Dispute Resolution services enable to resolve IP disputes outside the courts, in a single neutral forum, saving significant time and

Arbitration and mediation

WIPO’s fast, flexible and cost-effective services for settling IP and technology disputes outside the courts include:

  • Mediation where an impartial mediator helps two or more parties in dispute reach a
    mutually acceptable agreement between themselves.
  • Arbitration where the parties agree to submit their dispute to an arbitrator, who then makes a final, binding decision (award).
  • Expert determination where the parties agree to submit a specific issue (such as a technical question, or the valuation of an IP asset, or royalty rates) to one or more experts who make a
  • Domain Name Disputes
  • We are the leading international service-provider for disputes relating to Internet domain names

– or “cybersquatting.”

  • WIPO’s dispute resolution procedure is conducted in electronic format and delivers enforceable decisions within just two
  • INTELLECTUAL PROPERTY RIGHTS AND INDIA

SUMMARY

  • The Indian government has taken several initiatives to create a conducive environment for the protection of intellectual property

rights of innovators and creators by bringing about changes at legislative and policy level.

  • In addition, specific focus has been placed on improved service delivery by          upgrading infrastructure, building capacity and using state-of-the-art technology in the functioning of intellectual property offices in the country. This measure has resulted in sweeping changes in IP administration within the country.

12.3.1  AIMS

  • Establishing a vibrant IP regime in the
  • Efficient processing of IP applications by inducting additional manpower, augment IT facilities and automation in Intellectual Property
  • Adopt best practices in IP processing.
  • Strengthening public delivery of IP
  • Highest levels of transparency and user-friendliness

12.3.2  Strengths of the Indian IPR Regime

  • The IPR framework in India is stable and well established from a legal, judicial and administrative point of view and is fully compliant with the Agreement on Trade-Related Aspects of Intellectual Property Rights.
  • India is committed to wide range of international treaties and conventions relating to intellectual property rights.
  • Wide range of awareness programmes are being conducted by the Government
  • During the last few years, Indian IP offices have undergone major improvements in terms of upgradation of IP legislation, infrastructure facilities, human resources, the processing of IP applications, computerization, databases, quality services to stakeholders, transparency in functioning and free access to IP- data through a dynamic
  • State of the art, integrated and IT- enabled office buildings have been created during the last few years in New Delhi, Kolkata, Chennai and Mumbai and Ahmedabad, housing central wings for Patents and Designs and  Trademarks  and Geographical Indications. The Patent Office is headquartered at Kolkata with branches at New Delhi, Chennai and Mumbai. The Trade Mark Registry, headquartered at Mumbai has branches in Ahmedabad, Chennai, New Delhi and Kolkata. The Design Office is located in Kolkata and the GI Registry is at Chennai. Separate facilities house the ISA/IPEA in New Delhi and additionally, there is an Intellectual Property Office Archives is at Ahmedabad.
  • Simplified procedure for filing, E-filing facilities and incentives for SMEs are some of the other initiatives in the area of intellectual property rights in India.

12.3.3  TYPES OF IPR IN INDIA

  • Patent:

Definition and significance :

  • A patent is granted for an invention which is “a new
    product or process, that meets conditions of novelty, non- obviousness and industrial use. Inventive step is the feature(s) of the invention that involves technical advance as compared to existing knowledge and that makes the invention not obvious to a person skilled in the art. Industrial use means that the invention is capable of being made or used in an industry.

Ministry administering the IPR:

  • Department of Industrial Policy and Promotion,
  • Ministry of  Commerce  & Industry

Concerned IP Act :

  • The Patents  Act,  1970  (as amended in 2005

12.3.3.2 Design:

Definition and significance :

  • A design refers only to the features of shape, configuration, pattern, ornamentation, composition of colour or line or a combination thereof, applied to any article, whether two or three dimensional or in both forms by any industrial process or means which, in the finished article, appeal to and are judged solely by the eye.

Ministry administering the IPR :

  • Department of Industrial Policy and Promotion
  • Ministry of  Commerce  & Industry

Concerned IP Act :

  • Designs Act 2000

12.3.3.3  Trade Mark:

Definition and significance :

  • A Trade Mark can be a device, brand, heading, label ticket name, packaging, sign, word, letter, number, drawing, picture, emblem, colour or combination of colours, shape of goods, signature or a combination thereof.
  • A trademark means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one undertaking from those of other undertakings, shall
    be capable of constituting  a trademark.

Ministry administering the IPR :

  • Department of Industrial Policy and Promotion
  • Ministry of  Commerce  & Industry

Concerned IP Act :

  • Trade Marks Act 1999 (as amended in 2010)

12.3.3.4 Geographical Indications: Definition and significance :

  • A geographical indication identifies agricultural or natural or manufactured goods as originating or manufactured in the territory of a country or region or locality in that territory, where a given quality, reputation or other characteristic of such goods is essentially attributable to its geographical origin and in case where such goods are manufactured goods one of the activities of either. The production or of processing of preparation of the goods concerned takes place in such territory, region, or locality as the case may be.

Ministry administering the IPR :

  • Department of Industrial Policy and Promotion
  • Ministry of  Commerce  & Industry

Concerned IP Act :

  • The Geographical Indications of Goods (Registration   & Protection) Act, 1999

12.3.3.5  Copyright: Definition and significance :

  • Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of   reproduction, communication to the public, adaptation and translation of the work.

Ministry administering the IPR :

  • Ministry of Human Resource Development The Copyright Act, 1957

Concerned IP Act :

  • The Copyright Act, 1957 (as amended)

12.3.3.6 Plant Variety protection: Definition and significance :

  • Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of

Ministry administering the IPR :

  • Department of Agriculture and Cooperation
  • Ministry of Agriculture

Concerned IP Act :

  • The Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001

12.3.3.         7  Semiconductor Integrated Circuits Layout- Design:

Definition and significance :

  • The aim of the Semiconductor Integrated Circuits Layout- Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor
  • Integrated Circuit Layout Designs and for matters connected therewith or incidental

Ministry administering the IPR :

  • Department of Electronics and Information Technology
  • Ministry of Communications and Information Technology

Concerned IP Act :

  • Semiconductor Integrated Circuits Layout-Design Act, 2000

12.4                                    INTERNATIONAL AGREEMENTS

  • India is a member of the World Trade Organisation and committed to the Agreement on Trade Related Aspects of Intellectual Property. India is also a member of World Intellectual Property Organization, a body responsible for the promotion of protection of intellectual property rights throughout the
  • India is also a member of the following important WIPO- administered International Treaties and Conventions relating to IPRs:
  • Budapest Treaty  on  the International Recognition of

Patents:

Unauthorized Duplication of Their Phonograms
the Deposit of Micro- organisms for the Purposes of Patent Procedure

  • Paris Convention for the Protection of Industrial Property
  • Convention Establishing the World Intellectual Property Organization
  • Berne Convention for the Protection of Literary and Artistic Works
  • Patent Cooperation Treaty
  • Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks- Madrid Protocol
  • Washington Treaty on Intellectual Property in respect of Integrated Circuits
  • Nairobi Treaty on the Protection of the Olympic Symbol
  • Convention for the Protection of Producers  of Phonograms Against
  • India has taken strong steps in strengthening the patent system in the country. The Government aims at establishing a patent regime that is conducive to technological advances and is in line with its global commitments.
  • Patent application filing at Indian Patent Office has been increasing consistently over the years which demonstrates the confidence of the global industry in the Indian patent
  • Filing and processing of patent applications viz., examination, grant and  post–grant proceedings are carried out at all the four Patent Office locations independently through a virtual network system which links all four Patent Offices; however, there is only one virtual Patent Office for the purpose of grant of patents. A patent is granted for a uniform period of 20 years from the filing date of the patent application for inventions in all fields of technology and it is a territorial right.
  • The Indian Patent Office has been recognized as an International Searching Authority and an International Preliminary Examining Authority (ISA/IPEA) by World Intellectual Property Organization in October, 2007 under the Patent Cooperation Treaty, and has operationalised the status since 15th October, 2013, thus joining an elite group of 17

IT enabled processing and computerized work-flow:

  • All the records are digitized and freely available through the official website, www.ipindia.nic.in.  Every document received in the office is scanned and digitised before taking any action on the document and is made available through the official website to the public. The entire processing of patent applications is electronic and  information  relating  to processing is made available on the website in real time, thereby providing valuable information to the applicants.

Instant electronic communication with applicants:

  • Consequent to filing of a document, instant e-mail is sent to the applicant at the mail IDs and numbers registered with the office. Such messages are QR coded to preserve their authenticity.

Dynamic information:

  • Dynamic utilities are available on the website which provide useful real-time information such as issue of examination reports in a given month, disposal of applications, information about lapsed and ceased patents
  • The entire record in all matters, which are not prohibited from publication by the statute are made available to the public on the website. All the documents are digitized as soon as they are received in the Office to enable computerized processing of applications and are made available to the public in real time through the official website.
  • The Patent Office has a strong pool of experts for processing of patent applications. At present it has strength of 192 Examiners and 89 Supervising Officers. Among them, 42 have Doctorate degree, 75 are Post-Graduates in different branches of science, 25 have Post-Graduate degree in Engineering and 139 have Degree in Engineering/
  • For Patents, complete stock and flow information is available on the

Industrial Designs:

  • Every design to be registrable must pass the universal test of novelty. A registered design is valid for 10 years and can be further extended by another 5 years.
  • A design cannot be registered if it is not new or original or has been disclosed to the public in India or anywhere in the world by publication.

Trade Marks:

  • A trademark is used or proposed to be used to distinguish the goods or services of one person from those of others in the course of trade. Though the registration of trademark is not compulsory, registration is a prima facie proof of the title and it gives the registered proprietor an exclusive right to use the trademark and take legal action in case of infringement.
  • If a trademark is not registered and if someone not having the right in the trademark uses that trademark, the proprietor of the trademark can take the common law action of passing
    • The initial registration is valid for a period of 10 years which is renewable for an indefinite period of
    • India also acceded to the Madrid Protocol which allows applicants to file in other countries that are members of the Protocol through a simple form and by payment in one currency foreign applicants can also file indicating India as the designated country in forms. This also enables time-bound processing of Trade Marks applications.

12.4.1  Madrid Protocol:

  • Indian office is receiving applications for protection of trademarks under the Madrid Protocol and making all correspondence relating thereto online through the gateway provided by this office, similarly all communications from the International Bureau regarding international applications or registration under the Madrid Protocol are made by Indian office through electronic means only.

Automated and transparent functioning of the Trade Marks Registry:

  • All the functions of the TMR are performed through a Trade Marks System (TMS). The Data Entry of all vital information relation to trademark application or a registered trademark has been done and all available paper records relating to trademark applications or registered trademarks have been digitised and these are linked with the relevant application or registered trademarks, in the system.

Other information:

  • The IPO website contains separate Gateway for E- Filing of trademark applications and free online public search facilities for search of identical or similar trademarks.
  • Trade Mark E-Journal is published every Monday giving the details of accepted applications for registration of trademarks & other
  • Details of  all  trademark applications or      registered trademarks, status of applications/registered trademarks, public notices, copies of important office orders, circulars       and      other useful information are available on the website   of      the Office of the Controller General of  Patens, Designs and Trade Marks. The complete stock and flow information is also available on the website.
  • Public can see on real time basis the details of examination of trademark applications, show cause hearings, publication in the trademark journal, registration of trademarks, disposal                of applications by way of abandonment, refusal

Geographical Indications:

  • The Geographical Indications Registry is a statutory organization set up at Chennai for administration of the GI Act with the objective of providing registration and protection of geographical indications (GI) relating to
  • Applications for registration of Geographical Indications can also be filed by foreign entities for registration of their GI in India in accordance with the provisions of
  • A Manual of Practice and Procedure is in place to ensure uniformity and consistency in practice.

FACILITIES OFFERED

  • Facilities offered by the Patent Office to applicants / stakeholders:
  • Filing Applications by foreign applicants claiming priority:
    • India, being a member country to Paris the Convention and PCT, provides all the filing facilities as mandated under these arrangements to applicants for filing convention and national phase patent

Simplified Procedure for filing of National Phase Applications :

  • The procedure for filing a national phase application in India (corresponding to PCT international application) is effortless in that only one form is required to be filed and rest of the contents of the application are obtained by the Patent Office directly from the servers of International Bureau of the World  Intellectual  Property Organisation.

E-F iling Facilities :

  • For filing an application for patent or any document in the Patent Office, comprehensive e- filing service is available at the official website with a facility for making e-payment and there is no need to personally visit the office.

Incentive for online filing :

  • Indian Patent office offers 10% reduction in fees for online filing of all forms and documents relating to patents, at all stages of processing of an application right from the stage of filing to grant of patent and post-grant processes.

Concession for Small Entities :

  • Applicants belonging to the category of micro, small and medium enterprises (SMEs) are required to pay only 50% of the fee payable by other legal entities namely companies etc. The objective is to encourage the

MSMEs to protect their knowledge assets. This facility can be availed equally by foreign applicants.

Facilities offered by the Designs Wing to applicants/stakeholders:

  • Manual of Designs Practice and Procedure is in place for processing application for registration of designs to ensure uniformity and consistency in examination. The manual is available at the official
  • Design applications can be filed by foreign applicants taking priority of their foreign applications.
  • Design registration is granted within 6 months of filing of an application, if all requirements are
  • Search facility in the design database is available in the official
  • Design E- Journal is published in the official website on every Friday.

Facilities offered by the Trade Marks Registry to applicants/stakeholders:

  • Comprehensive e-filing services are available for online filing of all Trade Mark related forms at the office
  • Entrepreneurs from all over the world can register their trademarks in
  • The pre-requisites, FAQ, and instructions for e-filing are hosted on the
  • Under the Madrid Protocol, through a single application for registration, facility of online filing of  international applications can be

Medical Instruments

10.1 X- RAYS

  • x- rays from the Coolidge
  • Suited for bone injuries (fractures)
  • High frequency  x- rays were used
  • Cannot change image plane without moving patient
  • Provides mismatch in bone structures
  • Hazardous due to radiations
  • Patients with metal implants can take x- ray scan

10.1  CT- SCAN

  • Computed (Axial) Tornography
  • Suited for above injuries, lung& chest imaging, cancer detection
  • X- rays attenuation detected byDAS detector system
  • Can change image plane
  • Prorides good details about the bony
  • Hazardous due to radiations
  • Patients with metal implants can take CT- Scan

10.1  MRI

  • Magnetic refe imaging
  • Suited for soft tissue evaluation Ex: Tendon
  • Large magnetic field is used to image
  • Change of image plane is possible in 3d isotropic MRI
  • Provides good details about the soft
  • No biological hazard is
  • Patients with metal implants are not allowed to take MRI

10.1  ELECTRO CARDIOGRAM

  • ECG is used to measure the electrical activity of heart
  • It is commonly performed to find the damages in the heart and also to find the speed of heart beat.

10.1 ELECTRO ENCEPHALOGRAM

  • EEG is used to measure the electrical activity of
  • It is commonly performed to find the damages in neural calls of the

10.1  STETHOSCOPE

  • It is an important medical equipment used for the diagnostic process
  • Invented by : Renne Lennec in 1816

Function of Stethoscope :

  • It is used to analyse (hear) the sound produced by heart lungs and digestive
  • By adjusting the tuneable diaphragm we can able to pick up high & low frequency

Types of Stethoscope :

  • Acoustic stethoscope (Normal Telescope)
  • Electronic stethoscope also called Stethophone
  • Augculation stethoscope also called recording steth
  • Fetal stethoscope also called fetoscope (or) pinard’s Stethoscope used to listen heart sound of the fetus in pregnant women.
  • Doppler stethoscope operates on doppler’s effect.

10.1 SPHYGMOMANOMETER 

  • Sphygmomanometer means blood pressure
  • It is mainly used to measure the systolic & diastolic
  • Blood pressure unit : mm/Hg
  • Normal Blood Pressure: 120/80mm/ HG

Functions :

  • It is used to measure the blood pressure
  • Also used to listen the Kortokoff sounds

10.2  KORTOKOFF SOUNDS

  • Sound produced by the degiated blood flow of the artery
  • Capillary fragility best
  • To stop bleeding (or) stop poison from spreading to other parts.

10.3  ENDOSCOPY

  • It is a medical procedure used to view the internal organs non – surgically
  • Endoscope is inserted via the natural opening of the body

Types of Endoscopy :

  • Bronchoscopy : Examination of mouth, voice box,
  • Gastroscopy : Examination of stomach, duodenum
  • Colonoscopy : Examination of rectum
  • Cystoscopy : Examination of Bladder
  • Ureteroscopy : Examination of urinary bladder

Advantages :

  • It is often used to evaluate server stomach pain, ulcers, gastritis, digestive track
  • Can be performed without giving anaesthesia
  • No need for operation
  • No blood loss

Disadvantages :

  • High cost
  • Chance to tear the abdominal valve and cause bleedings

10.1 ANGIOGRAM

  • An angiogram is an imaging test that uses x- rays to view our blood
  • This test is also called as the arteriogram (If arteries were examined) (Or) vein gram ( if veins were examined)

10.2 CATHETER INSERTION

  • In this a Catheters tube is inserted via a femoral artery to the heart vessels to remove blocking substances (lipids) in the arteries
  • This is an extreme case of angiogram

Advantages :

  • PAD (Peripheral Artery Disease ) can be identified and rectified
  • Aneurysms (enlargements of arteries ) can be
  • Reno vascular conditions (kidney artery conditions can be overviewed)
  • Vascular malfunction can be identified
  • Coronary angiogram is used to inspect inside the coronary arteries.

10.3  HAEMOCYTOMETER 

  • It is an instrument used for counting the cells in the blood (or) fluid
  • The technique used here is Haemocytometer

Advantages:

  • It is the method of determining the total number of cells accurately
  • Low cost for testing

Disadvantage :

  • Can be inspected by microscope
  • Possible for source
  • Non uniform suspensions of blood cell cause error in

10.4 AUTO – ANALYSER

  • It is an automated analyser
  • It is used for the CFA (Continuous flow Analysis)
  • It is an automated chemical testing laboratory

Advantages :

  • It is used to determine the level of albumins, alkaline, products blood urea nitrogen, bilirubin, calcium, cholesterol, uric acid, glucose, creatinine, proteins, blood …
  • It can analyze hundreds of blood samples at a time

Disadvantage :

  • It depends completely on the colour reactions, in which photometer is used for the analysis so a very expertise technician is

10.5  PACEMAKER 

  • It is  a  battery-powered implantable device that provides electrical stimulation stimulation to the heart.
  • It helps the patients with very slow heart beats.
  • Pacemaker was invented by Hopps.
  • Pacemaker was in the top – 5 list of medical innovation
  • It is used to treat arrhythmias it is a condition in which the heart beat is too fast (or) slow (or) with irregular rhythm.

Advantage :

  • Complete technological cure for arrhythmias, tachycardia
  • It coordinates electrical signals of heart
  • CRT (Cardiac Resynchronization Theory) has been implemented successfully to treat heart failure.

Disadvantage :

  • Once pacemaker is installed in our body. Then we are not able  to take MRI (Magnetic Resonance Imaging ) scans.

INFORMATION TECHNOLOGY AND COMMUNICATIONS

4.1 INTRODUCTION

  • Information technology has become the key area for business and government sectors in recent times. Computers  and communication not only perform routine tasks like connecting cell phones, but with internet access they give access to the world’s digital info and the means to process
  • Computer – A computer is an electronic device which is capable of receiving the inputs, storing it for a desired period of time, manipulating it according to the set of instructions and producing the output in desired
  • Charles Babbage is the father of the

4.2 GENERATION OF COMPUTERS

First generation (1940 – 1956):

  • First generation computers used vacuum tubes which occupied huge space and consumed lot of electricity and relied on machine language to perform all computations. They could solve only one problem at a time.

Second generation (1956 – 1963):

  • Second generation computers used transistors which allowed computers to become smaller, faster, cheaper, more energy efficient and reliable. These computers used Assembly language.

Third generation (1964 – 1971):

  • Transistors were replaced by Integrated circuit chips which drastically increased the speed and efficiency of computers. These computers could handle multiple programs and applications at

Fourth generation (1971 – Present):

  • Integrated circuits were replaced by microprocessors, which could be linked together to form networks which eventually led to the development of Internet. This generation saw the development of GUIs, mouse and handheld devices.

www.iasgatewayy.com

Fifth generation (present and beyond):

  • Fifth generation is about Artificial intelligence  in Alan Turing and John McCarthy are the fathers of Artificial intelligence. Voice recognition, Quantum computers and molecular Nano technology will change the face of computers in the years to come.

4.3 NETWORKS – INTERNET, ARPANET

  • Internet – Internet is a global system of interconnected computer networks that use the standard internet protocol suite (TCP/IP) to serve billions of users worldwide.
  • ARPANET – Advanced Research Projects Agency Network was the world’s first operational packet switching network.

4.4 TYPES OF COMPUTER

  • Computers can be classified based on the following
  • Principle of operation
  • Configuration (size, speed, storage capacity)

Based on the principle of operation, computers can be classified into three types as follows:

  • Analog
  • Digital
  • Hybrid
  • Analog Computers – Work on continuous range of values and provides approximate E.g.   voltage,   pressure, temperature, speeds etc.
  • Digital Computers – Solve problems by performing calculations and by dealing with each number digit by digit. It uses binary system which uses only 0 or 1. These computers are used for solving complex problems in engineering and technology.
  • Hybrid computers – Combines the desirable features of analog and digital computers. It is mostly used for automatic operations of complicated physical processes and machines.

Based  on  configuration, computers can be classified into four types as follows:

  • Super computers
  • Mainframe computers
  • Mini computers
  • Micro computers
  • Super computers – Super computers are employed for specialized applications that require immense amount of mathematical calculations. They are the best in terms of processing capacity but are very expensive. They are used for
  • Weather forecasting
  • Animated graphics
  • Fluid dynamic calculations
  • Nuclear energy research
  • Petroleum exploration
  • Climate modelling
    • Some of the companies which produce super computers are Cray, IBM & Hewlett-Packard.
  • As of November 2015, China’s Tianhe in the fastest super computer in the world. It could perform at a speed of 33.86 PFLOPS
  • India’s super computer program started in late 1980s and PARAM 8000 was India’s first super computer. PARAM stands for Parallel machine and it was developed by Centre for Development of Advanced Computing (CDAC) in 1991 with a rating of 1 The power of super computer is measured by how many floating point operations per second or flops/sec.
  • 1 Gigaflop – 1 billion flops
  • 1 Teraflop – 1 trillion flops
  • 1 petaflop – 1000 trillion flops
  • 1 exaflop – 1 quintillion flops

As of November 2012, India has 8 super computers in the Top 500 list ranking.

RankSiteNameRmax (TFlop/s)
82Centre for Mathematical Modelling and Computer Simulation-303.9
127Vikram Sarabhai Space Centre, ISROSAGA - 220188.7
186Computational Research LaboratoriesEKA132.8
199Semiconductor Company-129.2
200Semiconductor Company-129.2
288IT Services Provider-104.2
364Indian Institute of Technology, MadrasVirgo91.1
386IT Services Provider-88.5

India’s notable super computers

  • SAGA 220 – built by ISRO with a capacity of 220
  • EKA – built by Computational research laboratories with technical assistance and hardware provided by HP. It is capable of performing 132
  • Pridhvi – built by Indian Institute of Tropical Meteorology (Pune) which is being used for climate research and operational forecasting. It is capable of performing 70.2
  • PARAM Yuva – belongs to the PARAM series of super computer developed by the Centre for development of Advanced Computing. It is capable of performing at 38.1
  • As of November 2015 China’s Tianhe-2 is the fastest super computer with a capacity of

33.86 petaflops.

  • Mainframe computers – Mainframe computers process data at very high speed. i.e. hundreds of million instructions per second (MIPS). MF computers can host multiple OS and operate a number of virtual machines. MF computers are used for highly critical applications such as
  • Banking
  • Airline booking
  • Railway booking
  • Enterprise resource planning

Advantages:

  • MF can perform large scale transaction processing (1000s of transaction/sec)
  • Supports 1000s of users and application programs concurrently
  • Manage terabytes of information in database
  • Handle large bandwidth communication
  • Microcomputer – A computer with a microprocessor and it CPU is known as a microcomputer. When supplemented with a keyboard and mouse, micro computers can be called as personal computers. Micro computers can be classified into
    • Desktop
  • Laptop
  • PDA
  • Tablets
  • Mini computers – Mini computers lie in between Mainframe and microcomputer in terms of size and processing capacity. They are also known as mid-range systems or work stations.

4.5 STORAGE DEVICES

  • Computer data storage often called storage refers to computer components and recording media that retain digital

Internal memory

  • RAM – Random Access Memory

– stores the code and data that is being actively processed by CPU. Temporary information can be stored and erased in RAM. RAM can be categorised as static RAM and dynamic RAM.

  • Static RAM – holds data as long as current flows through the circuit. SRAM is faster and less volatile than DRAM but requires more power and is less expensive.
  • Dynamic RAM – needs high or low voltage applied at regular intervals every 2 milliseconds or so. DRAM is cheaper when compared to
  • ROM – Read only memory. Data once written cannot be

Secondary storage devices

  • HDD – Hard or fixed disk device is a device for storing digital information. It consists of one or more rapidly rotating discs coated with magnetic material and with magnetic heads arranged to write data to the surfaces and read it from
  • SSD – Solid state drive or disk is a data storage device that uses solid state memory that stores persistent data with the intention of providing access in the same manner as HDD. But the difference is SSD is an electromagnetic device containing  spinning  disks  and movable read/write heads.
  • RAID array controller – Redundant array of Independent disks is a device to manage several internal or external hard disks and optionally some peripherals in-order to achieve performance or reliability improvement.
  • Floppy disc – is an outdated storage media used for reading and storing text files and simple formats. Storage capacity of 3.5’ FD is 1.44 Mb.
  • Compact Disc – is an optical disc used to store digital data. CD is an evolution of Laser disc technology. Data in the CD is read by passing infra-red laser through the bottom of the CD. CDs have a normal storage capacity of 700mb. Different types of CDs are used for different purposes as mentioned below.
  • Data storage (CD-R)
  • Rewritable media (CD-RW)
  • Video compact disc (VCD)
  • DVD – Digital video disk or versatile disk is also an optical storage device that looks the same as CD but is able to hold about 15 times as much information and transfer it to the computer about 20 times as fast as CD-ROM. A single sided DVD can store 4.7 Gb of data whereas a double sided and two layered DVD can store up to 17 Gb data. DVD provides better graphics, greater resolution and increased storage capacity. DVD supports two
    • DVD Video (for home movie entertainment)
    • DVD ROM (interactive games, video file storage, photographic storage)
    • DVD RAM (record data)
    • DVD R (Recordable)
  • Blu ray disc – is the name of the next generation optical disc format. This format was developed to enable recording, rewriting and playback of HD video, as well as storing large amounts   of   data.   The   format offers   more   than   5   times   the storage   capacity   of   traditional DVDs and can hold up to 25 Gb on a single layer disc and 50 Gb on  a  dual  layer  disc.  This  disc uses  blue  violet  laser  instead  of red and hence the name Blu ray.
  • HD DVD – this standard was jointly developed by Toshiba & NEC and supported by Microsoft. HD DVD has a single layer capacity of 15 Gb and dual layer capacity of 30 Gb. Capacity of HD-DVD RAM single layers is 20 Gb and dual layer is 40
  • USB Flash drive – is a typically small, lightweight, removable and rewritable flash memory data storage device integrated with a USB interface. Their capacity varies from hundreds of Mb to tens of
  • Memory card – Memory cards are typically used on mobile devices. They are thinner, smaller and lighter than USB Flash drives. Common types of memory cards are given below.

    SD – Secure digital is a non- volatile memory card

    MS – Memory stick is a removable flash memory card format

  • Tape drives – read and write data on a magnetic tape and are used for long term storage and backups.

4.6 COMPUTING PARADIGMS

  • Parallel Computing
    • Parallel computing is a form of computation in which many calculations are carried out simultaneously based on the principle that large problems can often be divided into smaller ones, which are then solved concurrently. The various types of parallel computing are
  • Bit level
  • Instruction level
  • Data level
  • Task level

4.6.2   Grid computing

  • Grid computers or computational grids enable the selection, sharing and aggregation of a wide variety of geographically distributed computational resources such as super computers, complete clusters, storage systems, data sources, instruments & people and  present them as a single unified resource for solving large scale computer and data intensive applications. E.g. molecular modelling for drug design, brain activity analysis and high energy physics.
  • AFAIK is the world’s largest grid project used in CERN which is being used for 2 years for the processing of data from Large hadron Collider enabling unprecedently fast delivery of scientific
  • GARUDA is India’s Grid computing initiative connecting 17 cities across the country, which includes all the IITs and CDAC centres.

4.6.3   Quantum Computing

Quantum computer is a computation device that makes direct use of quantum mechanical phenomenon such as superposition and entanglement to perform operations on data. Quantum computers use qubits to perform complex computations which is the quantum analog of digital bit.

4.6.4   Cloud computing

  • Cloud computing is a comprehensive solution that delivers IT as a

Types:

  • Infrastructure as a service (IaaS)
  • Platform as a service (PaaS)
  • Software as a service (SaaS)
  • Security as a service (SECaaS)
  • Storage as a service (STaaS)
  • Data as a service (DaaS)
  • Test environment as a service (TEaaS)
  • Desktop as a service (DaaS)
  • API as a service (Apia as)

Advantages:

  • Reduced cost
  • Reduced use of personnel
  • Robust scalability
  • Availability
  • Lower infrastructure costs
  • Mobility
  • Risk reduction
  • COMMUNICATIONS DTH – Direct to Home TV

  • DTH can reach remote or rural areas. It offers digital quality signals which do not degrade the picture or sound quality. It also offers interactive channels and program guides with customers having the choice to block out programming which they consider
  • The service providers in India are sun DTH, Tata sky, Dish TV, MTNL IPTV, Aortal DTH, Videocon DTH. IPTV – is a real- time broadcasting system for delivering TV programs to households through a broadband connection using IPs or systems. IPTV offers triple play
  • Video on demand (VOD)
  • VoIP
  • Web access

Internet telephony

Internet telephony refers to communication services – voice, fax, SMS voice messaging applications that are transported via internet rather than PSTN (Public switched telephone network).

  • VoIP – refers to communication protocols, technologies, methodologies and transmission techniques involved in the delivery of voice communications and multimedia sessions over IP networks such as

4.8 WIRELESS TECHNOLOGIES

  • Bluetooth is a proprietary open wireless technology standard for exchanging data over short distances (using short- wavelength radio transmissions in the ISM band from 2400– 2480 MHz) from fixed and

mobile devices, creating personal area networks (PANs) with high levels of security. It is a wireless personal area network.

  • Wi-Fi or wireless fidelity is a technology that allows an electronic device to exchange data wirelessly using radio waves over a computer network including high speed internet connections.
  • EDGE – Enhanced data rate for GSM Evolution or enhanced GPRS is a digital mobile phone technology that allows improved transmission rates as a backward extension of GSM. Supports data transfer speeds up to 384 kbps. It is also known as 2.75G
  • UMTS – Universal Mobile Tele system is a 3rd generation broadband, packet based transmission of text, digitized voice, video and multimedia with data rates up to 2Mbps based on the GSM
  • HSPA – High Speed Packet Access is an amalgamation of 2 mobile telephony protocols HS Downlink Packet Access and HS Uplink packet Access that extends and improves the performance of existing 3rdgeneration mobile telecommunication networks utilizing WCDMA
  • EVDO – Evolution data only or data optimized is one of the several major 3G wireless data standards. Mobile devices that use EVDO technology can upload and download quickly and the technology is always on whenever there is a signal from the wireless tower. Unlike a Wi-Fi connection, a device with EVDO does not need to be near a wireless hot spot; instead the cellphone can itself become a hotspot and share its internet connection with other devices. Frequency band 450 MHz
  • Long Term Evolution – Long term evolution is a mobile network 3G technology that is being deployed by mobile operations on both GSM and CDMA technology paths. LTE networks can deliver fast speed up to 100 Mbps in the downlink and 50 Mbps in the
  • LTE Advanced – 4G technology. Enhanced data rate of 1 Gbps using higher order MIMO.

WiMax       –      Worldwide Interoperability for Microwave Access.WiMax provides

  • Portable and high speed of broadband service
  • Wireless – so less expensive than cable or DSL and much easier to extend to suburban and rural areas.
  • Broad coverage like cell phone network instead of small Wi-Fi hotspots.
  • Provides data, telecom (VoIP), IPTV services (triple play)
  • Data speed up to 3-40 Mbps and up to 1Gbps for fixed

4.9 DIGITAL CONVERGENCE

  • Convergence is a confluence of computers, telephone and TV into a single system to provide Information, Communication and Entertainment (ICE). Such a cyber confluence is expected to be implemented in current decade for which Government is contemplating a new regulation known as communication (carriage and content) bill, which will facilitate the rapid growth and

4.10 INFO SUPER HIGHWAY

  • Information Super Highway is a phrase that indicates the convergence of technology of Computer, TV phone into single system providing high speed, high capacity data communication conduct that would allow exchange of multimedia data across the continent enabling applications like video conferencing, transfer of images, sound etc. across continents. G8 countries have developed this plan for linking all of them initially and later on extending it to

INFORMATION TECHNOLOGY

  1. What is artificial intelligence? What is its current scenario and what are its prospects? (About 250 words) (01/II/3a/40)
  2. What do the following stand for? (92/II/8c(C)/3)
    • PUFA (ii) VHRR

(iii) HDTV

  1. What is an E-lamp? What are its main advantages? (93/II/8a(C)/3)
  1. What is virtual reality? What is it used for? (96/II/7b/20)
  2. What do the following stand for: (96/II/8c(C)/3)
    • C-DOT (ii) CGCRI

(iii) INMAS

  1. What do the following stand for? (97/II/8d(C)/3)
    • TIFR
    • GRDO (iii) NEERI
  2. What are optical fibres? What are their advantages? (98/II/7c/20)
  3. State the importance of Antrix corporation. (98/II/8b(C)/3)
  4. Why is Website getting popular? (98/II/8c(C)/3)
  • What do the following stand for: (98/II/8d(C)/3)
    • C-DAC (ii) ICMR

(iii) TRAI

  1. What is the difference between E- mail and Fax? (98/II/8f(C)/3)
  2. What are the major provisions of the New Telecom Policy approved by the Government? What has been the decision of the Delhi High Court in this respect? (99/I/6c/10)
  3. What do the NISSAT stand for? (99/II/10d(i)/1)
  1. What is fibre optics? What advantages does it offer in telecommunications? Elaborate. (01/II/11a/15)
  2. Write about E-commerce in 20 words. (01/I/13b/2)
  3. Discuss in detail “The Internet Telephony as an alternative.” (02/II/10b/30)
  4. What is interactive television? What special advantages are derived by using VOD services? What are the components of a typical VOD system? Which feature film was generated first entirely on computers and in which year? (03/II/10b/30)
  • Discuss the utility of e- governance in the Indian context. (04/I/11c/10)
  1. Write note on Use of Information Technology in health management in India. (in 125 words) (05/I/12c/10)
  2. What is digital convergence? Examine its implications for modern society. (About 250 words) (05/II/10b/30)
  3. Write short notes on PACE. (07/I/13b/2)
  1. Explain: Internet Protocol Television (IPTV) (150 words) (08/II/11a/15)
  2. Explain: Wifi. (150 words) (08/II/11c/15)
  3. Write brief note on TIFAC in 20 words. (08/II/12b/2)
  4. Define ‘optical frequency comb’. Suggest at least three applications. (09/II/9d/10)
  5. Trace the significant steps in the evolution of Television in the country. (09/I/9a/15)
  • The Telecommunications Ministry’s proposed Spectrum Management (2011/I/7e/5)

COMPUTER

  1. What is a “Computer Virus”? What are its effects? Its there a remedy? (89/II/8e(C)/4)
  1. Explain the meaning of the term ‘quantum jump’. (90/II/8d(C)/3)
  1. What is a supercomputer? Give an account of supercomputer development in (93/II/3a/4c)
  1. What is a CD-ROM Describes its main advantages as a vehicle for information (93/II/7c/20)
  1. What are     encilitest? (94/II/8a(C)3)
  1. What do the following stand for? (94/II/8d(C)/3)
    • C-DAC (ii) SROSS
    • INSDOC
  1. What do the following stand for: (95/II/8d(C)/3)
    • IRDEA (ii) APPLE

(iii) INMAS

  1. What is E-mail? (97/II/8c(C)/3)
  1. Describe the development of super-computer in India. (98/II/7a/20)
  • What is a modem? What is it used for? (99/II/10a/3)
  1. What is a computer virus? How does it infect systems? (99/II/10c/2)
  1. Answer the following about 20 words each: (00/II/12/2 each)
  • What does the clock speed’ of

a computer signify?

  • What do the following stand for? (00/II/12/2 each)
    • http (ii) CPU

(iii) ROM  (iv) BIOS

  • What is a modem and what is it used for?
  • What is spamming?
  • How does a computer virus destroy data?
  1. Answer the following in about 20 words each:
  • What is ‘handshake’ in

computer language?

  • What is ‘ethernet’ and what is

it used for?

  • What is ‘digital signature’ and

what is it used for?

  • What do the following stand for?
    • DRAM (ii) JPEG (iii)

ASCII (iv) IMAP

  • What is  a  WAP  –enabled phone? (01/II/12/2 each)
  1. Answer the following in about 20 words each: (02/II/12/2 each)
  • What is a digital camera?
  • What is firewall in computer Language?
  • What is multimedia?
  • What do the following stand for?
    • HTML (ii) FTB

(iii) MELOPS   (iv) PLANIT

  • What is Piracy? (02/II/12/2 each)
  1. Answer the following (in about

20 words  each):  (03/II/12/2 each)

  • What is   ‘Sympathetic Haptics’?
  • What are special featuresj of

‘Linux’?

  • What is an operating system? List the basic services provided by an operating system
  • What is an Ínternet Worm’?

Explain DDoS.

  • What do the following stand for?
    • POSIX (ii)  EPROM

(iii) MODEM   (iv) COBOL

  1. Answer the following (in about

20   words  each):  (04/II/12/2 each)

  • What do you understand by E-governance?
  • What is a URL?
  • What do the following stand for?
    • CD-ROM (ii) USB

(iii) ITES  (iv) FORTRAN (d)What do you understand by

MP3?

(e) What are cyber-crimes? How are these protected?

  1. Write about the following: (05/II/6i/2)
  • Answer the following (in about 20 words each) (05/II/12/2 each)
  • What is an Exabyte?
  • What is VIRUS?
  • What do the following stand for?
    • XML (ii) MASER

(iii) SECAM (iv) TIPS (d)What is avatar?

(e) What is Wikipedia?

  1. What do you understand by optical computing? Why is optical computing envisaged to have much better performance than that of electronic computing? (in about (150 words) (06/II/11a/15)
  1. Answer all the five (in about 20 words each). (06/II/12/2 each)
  • What do you understand by a

‘search engine’ in computing?

  • Expand the following:
    • CAD (ii) CAM

(iii) CIM

  • Explain what  is  thin  Film Memory in
  • Write a   short note on Ártificial
  • Who are called ‘Hackers’in

computer world?

  1. Answer all the five (in about 20 words each) (07/II/12/10)
  • What is firewall?
  • What is malware?
  • What do the following stand for?
    • MPEG (ii) ISP

(iii) HTML   (iv) ASCII

  • What is Root kit?
  • What is   computer architecture?
  1. Explain: Components of Robots. (08/II/11d/15)
  1. Write about ‘bhuvan’

(09/II/4a/3)

  1. Bring out the applications of computer models in studying climate changes, with special reference to the Community Earth System Model (CESM). (10/II/5a/12)
  1. Explain and differentiate among ‘Plasma’, ‘LCD’ and ‘LED’ television (10/II/5c/12)
  1. What is “cloud computing”? Bring out its essential features and list its advantages and limitations. (10/II/5d/12)

IPR

8.1. INTERNATIONAL

INTELLECTUAL PROPERTY INDEX 2018
Why in news?

  • Recently, Global Innovation Policy Centre (GIPC) of US Chambers of Commerce had released the International Intellectual Property Index (IIPI).

What is Intellectual Property Rights (IPR)?

  • Intellectual Property refers to creation of mind such as inventions, literary and artistic works and symbols, names and images used in commerce.
  •  IPR are the rights which allow creators of patents, trademarks or copyrighted work to benefit them for their own work or investment. These rights have been outlined in Article 27 of Universal Declaration of Human Rights.
  • The importance of IPR was first recognized in the Paris Convention for the protection of Industrial Property (1883) and Berne Convention for the
  • Protection of Literary and Artistic Works (1886) (both administered by WIPO).

National Intellectual Rights Policy

  • It is a vision document which aims to create and exploit synergies between all form of intellectual property, concerned statuses and agencies. Main objectives of the policy are –
  •  IPR Awareness and outreach
  • Stimulate the generation of IPR
  • Strong legal and legislative framework
  •  Modernize and strengthen service-oriented IPR Administration
  • Commercialisation of IPR
  • Enforcement and Adjustment for combating IPR adjustment
  • Human Capital Development for teaching, training, research and skill building in IPRs. CIPAM, a professional body created under DIPP has been entrusted with the implementation of the National IPR Policy 2016.

About the Index

  • It is an annual Index which examines a country’s Intellectual Property (IP)framework

across eight categories of indicators –

  • patents, copyrights, trademarks, trade secrets and market access, enforcement, commercialisation of IP assets, systemic efficiencies and ratification of international treaties.
    Highlights of the IIPI 2018
  •  USA topped the list followed by UK and Sweden.
  •  India has been ranked 44 out of 50 countries up from 43 out of 45 in 5th edition.
  • Steps taken by Government to improve the Intellectual Property Rights ecosystem
  • A comprehensive National IPR policy has been put in place. (please refer to the box)
  • Integrated approach and synergy had been adopted through transferring various IP offices and Acts under DIPP and also merging Copyrights Board with Intellectual Property Appellate Board.
  • Cell for IPR Promotion and Management has also been established for assisting in simplifying and streamlining of IP processes as well as creating IPR awareness, commercialization and enforcement.
  • A Scheme for facilitating Start-up Intellectual
  • Property Protection (SIPP) has been launched for encouraging innovation and creativity of Start-Ups.
  • India has also become the 90th member of Madrid Protocol.

Madrid Protocol

  • It is an international treaty that allows a trademark owner to seek registration in any of the countries that have joined Madrid Protocol by filing a single application.
  • International Bureau of the World Intellectual Property Organisation administers the international registration system.
  • The Department of Industrial Policy and Promotion (DIPP) has inked agreement with Punjab State Council of Science and Technology to establish India’s first TISC

(Technology and Innovation Support Center).

  •  TISC is WIPO’s (World Intellectual Property Organisations) program that provides innovators in developing countries with access to locally based, high quality technology information and related services.
  •  The program will help innovators to fully exploit their creative potential and also protect their Intellectual Property Rights (IPRs).
  • CIPAM (Cell for IPR Promotion and Management) has been designated as the national focal point for the TISC network.
  •  Scheme for IPR Awareness –Creative India; Innovative India has been launched by CIPAM to raise IPR awareness across India
  • CIPAM has also launched IPrism, an Intellectual Property Competition for college and university students to foster a culture of innovation and creativity.

WIPO

  •  WIPO is the global forum for intellectual property services, policy, information and cooperation.
  • It a specialized a self-funding agency of the United Nations, with 189 member states.
  • It was established in 1967 and is headquartered in Geneva, Switzerland.

8.2. GEOGRAPHICAL INDICATION

Why in news?

  • Recently, Geographical Indication (GI) registry granted GI tag to:
    About the Nilambur Teak
  •  It is also known as Malabar teak and the
    Mecca of Teak.
  •  It is the first forest produce to get GI tag. o It is known for its durability, earth colour and larger size.
  •  It exhibits high resistance to fungal decay
    and shows antioxidant properties
  • making it ideal for usage in construction purposes like Buckingham Palace, the Kabba building in Mecca, the Titanic etc.
  •  It is also known for hydrophobicity and its oily nature.
  •  Teak also has the highest capacity for carbon sequestration among trees in India.
  • About the Gobindobhog rice
  • A speciality from Burdwan district of West Bengal.
  • It is cultivated late and therefore not much affected by rains.
  • It is less prone to pests as well.
  • The productivity per area is high and farmers get better prices for of this variety
  
  • Stone sculptures of Mamallapuram Etikoppaka toys.


  • Banglar rosogulla (West Bengal).


  • Gobindobhog rice, a speciality from Burdwan district of West Bengal.


  • Nilambur Teak: grown in Nilambur region
GI Tag for other Rice variety in India:
• Kalanamak Rice: Uttar Pradesh

Basmati rice: Punjab, Haryana, Himachal Pradesh
and Uttarakhand and parts of Uttar Pradesh and

Jammu & Kashmir

Ambemohar Rice: Maharashtra
• Palakkadan Matta Rice, Navara rice, Pokkali Rice,
Wayanad Jeerakasala Rice,
Gandhakasala Rice, Kaipad Rice: Kerala
Other GI product from WEST Bengal
Darjeeling Tea, Santiniketan Leather Goods, Laxman
Bhog Mango, Fazli Mango, Himsagar (Khirsapati
Mango), Santipore Saree, Baluchari Saree, Dhaniakhali
Saree, Joynagarer Moa, Bardhman Sitabhog and
Bardhman Mihidana.
•Geographical Indications of Goods (Registration and
Protection) Act, 1999
• As a member of the World Trade Organization (WTO), India enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
• GI is covered as element of intellectual property rights (IPRs) under Paris Convention for Protection of Industrial Property.
• The Act is administered by the Controller General of Patents, Designs and
Trade Marks, who is also the Registrar of Geographical Indications.

How are GI protected
• Sui Generis Systems (i.e. special protection)
• Using Collective Or Certification;
  • Methods focusing on business practices, including administrative product approval schemes.

What is GI tag?

  •  It is an indication that is definite to a specific geographical territory. It is used for agricultural, natural and manufactured goods having special quality and established reputation.
  •  For a product to get the tag, it needs to be produced or processed or prepared in that region.
  •  The registration of a GI is valid for 10 years after which it needs to be renewed.
  • GIs support local production and are an
  • important economic tool for the uplift of rural and tribal communities.
  • GI is a collective right. Producers can use the collective GI mark to commercially exploit the products.
  • Geographical Indicators in India are governed by “The Geographical Indications of Goods (Registration & Protection) Act, 1999”.

Types of IPR (apart from Geographical Indications)

Patent

  • A patent is granted for an invention which is a new product or process that meets conditions of novelty, non-obviousness and industrial use.
  • Novelty means inventive step is the feature(s) of the invention that involves technical advance as compared to existing knowledge.
  • Non-obviousness means the invention is not obvious to a person skilled in the art.
  •  Industrial use means that the invention is capable of being made or used in an industry.
  • Patents in India are governed by “The patent Act 1970” which was amended in 2005 to make it compliant with TRIPS.

Copyright

  • Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings.
  • This right allows its creator the rights of reproduction, communication to the public, adaptation and translation of the work.
  • Copyrights in India are governed by “The Copyright Act, 1957”.

Trademark

  • It refers to graphical representation of goods or services to make it distinguishable from the others
  • It can be words, symbols, sound, colours, shape of goods, graphics representation or packaging etc.
  • They are governed under Trademarks Act, 1999 (amended in 2010) under aegis of DIPP
  • The ‘fair usage’ of certain trademarks for the purpose of education, research etc. is not available under the Trademarks Act. Therefore the third party is required to seek permission from the owner every time.

Design

  • An industrial design consists of the creation of a shape, configuration or composition of pattern or color, or combination of pattern and color in three-dimensional form containing aesthetic value.
  • An industrial design can be a two- or three-dimensional pattern used to produce a product, industrial commodity or handicraft.
  •  Designs in India are governed by “The
    Designs Act 2000”.

Plant Variety Protection

  • It refers to the protection granted for plant varieties. These rights are given to the farmers and plant breeders to encourage the development of new varieties of plants.
  •  Plant variety protection in India is governed by “The Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001”.
  • NOTE: Stone sculptures of Mamallapuram, and pur Etikoppaka toys are covered in culture booklet

RECENT DEVELOPMENTS

1. Higgs Boson

  • The Higgs is the last missing place of the Standard Model, the theory that describes the basic building blocks of
  • The other 11 particles predicated by the model have been found and finding the Higgs would validate the
  • According to the theory, Higgs boson was the agent that made the stars, planets – and life – possible by giving mass to most elementary particles, the building blocks of the universe, hence the nickname “God Particle”.

2. Stem Cells

  • Stem cells are the “master cells”that can transform into a variety of more specialised cells required in the
  • The embryonic stem cells the team tried and failed with were at a developmental stage known an “pluripotency”.
  • This means they can transform into any issue type in the body, but cannot turn into the placenta or an entire

3. IRNSS

  • The Indian Regional Navigation Satellite System (IRNSS) is an autonomous regional satellite navigation system being developed by the Indian Space Research Organisation (ISRO) which would be under complete control of the Indian
  • The requirement of such a navigation system is driven by the fact that access to foreign government-controlled global navigation satellite systems is not guaranteed in hostile
  • The IRNSS would provide two services, with the Standard Positioning Service open for civilian use and the Restricted Service, encrypted one, for authorised users (military).

4. Cryonixs

  • Cryonics is the low-temperature preservation of humans who cannot be sustained by contemporary medicine, with the hope that healing and resuscitation may be possible in the
  • Cryopreservation of people or large animals is not reversible with current
  • The stated rationale for cryonics is that people who are considered dead by current legal or medical definitions may not necessarily be dead according to the more stringent information-theoretic definition of
  • It is proposed that cryopreserved people might someday be recovered by using highly advanced technology.

5. DNA computing

  • DNA computing is a form of computing which uses DNA, biochemistry and molecular biology, instead of the traditional silicon-based computer
  • DNA computing, or, more generally, biomolecular computing, is a fast developing interdisciplinary area. Research and development in this area concerns theory, experiments, and applications of DNA computing.
  • The term “molectronics” has sometimes been used, but this term had already been used for an earlier technology, a then- unsuccessful rival of the first integrated circuits; this term has also been used more generally, for molecular-scale

6. Bionix eye

  • A bionic eye mimics the function of the retina to restore sight for those with sever vision
  • It uses a retinal implant connected to a video camera to convert images into electrical impulses that activate remaining retinal cells which then carry the signal back to the

7. Graphene

  • Graphene is an állotrope’or a two dimensional form of carbon with atoms densely packed in a honeycomb fashion in a one – atom-thick sheet or layer.
  • This work establishes that the new class of two-dimensional carbon nanomaterials has enormous potential in water purification, in creating cheap, easily manufacturable
  • The material is also attractive due to its high specificity to the pesticides and insensitivity to changes in pH values of water and less toxicity than
  • Besides, reduced grapheme oxide can be easily immobilized on cheap substrates like sand and used as a
  • The anti-bacterial properties of grapheme means bacteria is unlikely to accumulate on teh filter media using

8. Venus Express

  • Venus Express is European Space Agency’s (ESA’s) first mission to Earth’s nearest planetary neighbour, Venus.
  • The mission was born in March 2001
  • Out of a number oif promising proposals, ESA selected venus Express.
  • What made the mission especially attractive was that many of the spare instruments developed for ESA’s Mars Express and Rosetta missions could be used to achieve Venus Express’s science objectives, which were to study the atmosphere in great

9. Antimatter

  • In particle phuysics, antimatter is material composed of antiparticies, which have the same mass as particles of ordinary matter but have opposite charge and quantum spin.
  • Antiparticies bind with each other to form antimatter in the same way that normal particies bind to form normal
  • For example, a positron (the antiparticle of the electron, with symbol e+) and an antiproton (symbol p) can form an antihydrogen atom
  • Furthermore, mixing matter and anitimatter can lead to the annihilation of both, in the same way that mixing antiparticles and particles does, thus giving rise to high-energy photons (gamma rays) or other particle – antiparticle
  • The ane result of antimatter meeing matter is a release of energy proportional to the mass as the mass-energy.

10. Noori

  • The world’s first pashmina goat clone, produced in Kashmir, has been named Noori, an Arabic word referring to light, in Srinagar by a group of scientists and researchers. Funded by World Bank, the clone project was a jointly worked by Sher-i- Kashmir Agriculture University for Science and technology (SKAUST) and Karnal-based National Dairy Research Institute (NDRI).

13. Genonic imprinting

  • Genomic imprinting is a genetic phenomenon by which certain genes are expressed in a parent- of-origin- specific manner.
  • It is an inheritance process independent of teh classical Mendelian
  • Imprinted alleles are silenced such that the genes are either expressed only from the non- imprinted allele inherited from the the mother, or in other instances from the non-imprinted allele inherited from the father

14. RFID

  • RFID is the modern identification procedure which uses radio frequency.
  • RFID will provide transparency in application including supply chain, logistics and equipment management. The benefits of visibility and fast identification provided by RFID technology especially in supply chain management (SCM) reduce the risk of

15. SQUID

  • SQUID – Superconducting Quantum Interference
  • A superconducting quantum interference device (SQUID) is a mechanism used to measure extremely weak signals, such as subtle changes in the human body’s electromagnetic energy field.
  • Using a device called a Josephson junction, a SQUID can detect a change of energy as much as 100 billion times weaker than the electromagnetic energy that moves a compass

16. Nano – Ear

  • The world’s smallest ear is a tiny piece of gold suspended in a laser beam.
  • In can hear sounds a million times fainter than any human ear can, making it a powerful acoustic
  • The setup is a progression from the 1986 development of so- called optical tweezers”, which use laser beams to trap microscopic particles inside the most powerful part of the electric field.

17. Insight

  • It is NASA’s MARS Mission in 2016
  • This mission called Ïnsight”will investigate why Mars crust is not divided into tectonic plates that drift like Earth’s.

18. Quasars

  • A quasi-stellar radio source (quasar) is a very energetic and distant active galactic
  • Quasars are extremely luminous and were first identified as being high redshift sources of electromagnetic energy, including radio waves and visible light, that were point-like similar to stars, rather than extended sources similar to

19. Neutron Stars

  • Netron stars are a hyper-dense form of dead star composed almost entirely of
  • A sub-class star is a star made entirely out of neutrons, as the name suggests.
  • These are the remains of stars that had between 1.4 and 9 times the mass of our sun (solar masses).

20. Pulsars

  • A pulsar is the same object as a neutron star, but with one added feature.
  • A pulsar emits two very high- energy beams into space, concentrated along its magnetic axis.
  • Pulsars (and neutron stars) spin very rapidly, most at about once every

21. Fertile Crescent

  • The Fertile Crescent is a crescent, shaped region containing the comparatively moist and fertile land of otherwise arid and semi-arid Western Asia, and the Nile Valley and Nile Delta of northeast Africa.
  • In current usage the Fertile Crescent has a minimum extent and a maximum

22. Grail Mission

  • The Gravity Recovery and interior Laboratory (GRAIL) was an American lunar science

mission in NASA’s Discovery Program which used high- quality gravitational field mapping of the Moon to determine its interior structure.

23. Speckle Noise

  • Speckle noise is a granular noise that inherently exists in and degrades the quality of the active radar and synthetic aperture radar (SAR)
  • Speckel noise in conventional radar results from random fluctuations in the return signal from an object that is no bigger than a single image-processing element. It increases the mean grey level of a local

24.  Photon Torpedo

  • A photon torpedo was a projectile weapon commonly used by Federation
  • The photon torpedo used shaped charges of antimatter that, when they came in contact with conventional matter or hard energy barriers, released massive amounts of gamma ray photons, hence the weapon’s

25. DNA Chip Technology

  • DNA chip technology utilizes microscopic arrays (microarrays) of molecules immobilized on solid surfaces for biochemical analysis.
  • Microarrays can be used for expression analysis, polymorphism detection, DNA resequencing, an genotyping on a genomic

26. Plasmons

  • Plasmons are density waves of electrons, created when light hits the surface of a metal under precise
  • These density waves are generated at optical frequencies, adn are very small and

27. IPV6

  • Internet protocol (IP) is the set of techniques used by many hosts for transmitting data over the internet.
  • Internet Protocol Version 6 (Pv6) is a network layer protocol that enables data communications over a packet switched
  • The working standard for the IPV6 protocol was published by the Internet Engineering Task Force (IETF) in 1 The IETF specification for IPV6 is RFC 2460. IPV6 was intended to replace the widely internet Protocol Version 4 (IPV4) that is considered the backbone of the modern Internet.
  • IPV6 is often referred to as the “next generation internet” because of its expanded capabilities and its growth through recent large scale deployments. In 2 Japan and Korea were acknowledged as having the first public deployments of IPv6.

28. Biological internet (Bi-Fi)

  • Researchers from Stanford University are harnessing the key attributes of a virus ‘M13’to develop the first biological Internet or ‘Bi-Fi’ by creating a mechanism to send genetic messages from cell to

29. e-Nose (E-Sensing)

  • An electronic nose is a device intended to detect odors or flavours. Over teh last decade, electronic sensing or ‘e- sensing’technologies have undergone important developments from a technical and commercial point of
  • The expression electronic sensing’ refers to the capability of reproducing human senses using sensor arrays and pattern recognition

30. e-Tongue

  • The electronic tongue is an instrument that measures and compares
  • Chemical compounds responsible for tast are are detected by human taste receptors, adn the seven sensors of electronic instruments detect the same dissolved organic and inorganic compounds.

31. e-Textiles

  • E-textiles, also known as electronic textiles or smart textiles, are fabrics that enable

computing, digital components, and electronics to be embedded in them.

  • Part of the development of wearable technology, they are known as intelligent clothing or smart

32. Holography

  • Holography is a technique which enables three dimensional images to be made.
  • It involves the use of a laser, interference, diffraction, light intensity recording and suitable illumination of the

33. Swarm Robotics

  • Swarm robotics is a new approach to the coordination of multirobot systems which consist of large numbers of mostly simple physical

34. Virtual Reality

  • Virtual reality is a term that applies to computer – simulated environments that can simulate physical presence in places in the real world, as well as in imaginary
  • The term artificial reality’was environments are primarily visual experiences, displayed either on a computer screen or through special stereoscopic displays, but some simulations include additional sensory information, such as sound through speakers or

35. Magnetic Refrigeration

  • Magnetic refrigeration is a cooling technology based on ther magneto caloric effect.
  • This technique can be used to attain extremely low termperatures, as well as the ranges used in common refrigerators, depending on the design of the

36. gTLD

  • A generic Top-level domain (gTLD) is one of the categories of Top-level domains (TLDs) maintained by the internet Assigned Numbers Authority (IANA) for use int eh Domain Name System of the Internet. It is visible to internet users as the

suffix at theand of a domain name.

37. Botnet

  • A botnet is a collection of computers, connected to the internet, that interact to accomplish some distributed task.
  • Although such a collection of computers can be used for useful and constructive applications, the term botnet typically refers to such a system designed and used for illegal

38. Spambot

  • A spambot is an automated computer program designed to assist in the sending of
  • Spambots usually create fake accounts and send spam using them, although it would be obvious that a spambot is sending it.
  • Some spambots, however, can crack passwords and send spam using other people’s

39. Cryonics

  • Cryonics (meaning icy cold) is the low-temperature preservation of humans and animals who cannot be sustained by contemporary medicine, with the hope that healing and resuscitation may be possible in the
  • Cryopreservation of people or large animals is not reversible with current

40. Human Connectome Project

  • The Human Connectome Project is a five-year project sponsored by sixteen components of the National Institutes of Health (NIH), split between two consortia of research
  • The project was launched in July 2009 as the first of three Grand Challenges of the NIH’s Blueprint for Neuroscience

41. Cyclebeads

  • CycleBeads, a simple, inexpensive, non-clinical and easy-to-use natural family planning method, could well be the answer to the problem of burgeoning population of India –

the second most populous nation that recently welcomed the footfall of world’s seven billionth baby on its soil.

42. siRNA

  • siRNA (small interfering RNA) or short interfering RNA or silencing RNA is a class of double

–  stranded  RNA  molecules,  20- 25 base pairs in length.

  • siRNA plays many roles, but its most notable is in the RNA interference (RNAi) pathway, where it interferes with the expression of specific genes with complementary nucleotide

43. Pentavalent Vaccination

  • The Pentavalent vaccine contains five antigens –Diphtheria, Pertusis, Telanus, Hepalitis B and Hib with only Hib being the new addition to the immunisation programme.

44. Antioxidants

  • Antioxidants are substances that may protect our cells against the effects of free
  • Free radicals are molecules produced when our body breaks down food, or by environmental exposures like tobacco smoke and radiation.
  • Antioxidant substances include
    • Beta-carotene
    • Lutein
    • Lycopene
    • Selenium
    • Vitamin A
    • Vitamin C
    • Vitamin E

45. Specific Absorption Rate

  • Specific absorption rate (SAR) is a measure of the rate at which energy is absorbed by the body when exposed to a radio frequency (RF) electromagnetic field, although, it can also refer to absorption of other forms of energy by tissue, including ultrasound.

46. Social Jetlag

  • Social jetlag – a syndrome related to themismatch between the body’s internal clock and the realities of our daily schedules – does more than make people sleepy and also make them obese, according toa team at University of Munich. White-Fi technology

  • At present, unused spectrum is allotted to television broadcasters. This unused gap is called “White space” Microsoft wants to use it, to beam wifi on a bigger scale of 10 kms radius, with 15 mbps speed at a cost of Rs.10 lakh per
  • This can provide internet connectivity to villages and tribal areas. But government must give the unused spectrum to tech companies first. Microsoft got trial- permission for
  • Telangana Government also interested in this technology for Hyderabad.
  • CEO Satya Nadella met Telecom minister Ravi Shankar Prasad for all-India
  • Recall that other tech-giants too want to increase internet penetration. Example Facebook’s solar-drones (Internet.org) and Google’s helium balloons (Project A Japanese company has deleveoped an electronic Ring with bluetooth.
  • To control IT-gadges with finger gestures- using bluetooth
  • g. open SMS, type messages and send emails without touching your phone or tablet.


  • For example, you store your birth certificate online and provide only the link when you apply for passport.
  • Maharashtra government already launched “Maha Digital Locker” where you can login with your Aadhar id. This website can directly upload your certificates to third party website- during job application, passport registration etc.
  • Microsoft CEO Nadella wants to help implement this technology at all India
  • Pro: Paperless operations, no need for photocopies and attestation by gazetted
  • Anti: Concerns about online privacy and Thirty Metre Telescope

  • Thirty Meter Telescope (Because its primary mirror is 30m wide)
  • World’s largest infrared telescope
  • World largest optical telescope (because its primary mirror is 30m wide.) although this record will be soon broken, when European Extremely Large telescope is build. (42m mirror)
    • TMT is 12 times better than Hubble space
    • Therefore, can search for stars that are less bright or farther from Earth.
    • TMT will help finding most distant and oldest stars that were born after Big Bang. Thus we can learn more about the origin of the
    • Mauna Kea volcano summit, in Hawaii.
    • Controversy: Project will harm the habitat of Rare Weiku

HEALTH

6.1. VECTOR BORNE DISEASES

  • Define: Vector-borne diseases are human illnesses caused by parasites, viruses and bacteria that are transmitted by mosquitoes, sandflies, blackflies, ticks, tsetse flies, mites, snails and lice etc.
  • Example: Diseases such as malaria, dengue, Visceral leishmaniasis, kala-azar/ Dumdum Fever), yellow fever, Japanese encephalitis, Chikungunya, Zika etc.

National Vector Borne Disease Control Programme (NVBDCP)

  • It is an umbrella programme for prevention and control of vector borne diseases and is subsumed under National Health Mission.
  • Directorate of NVBDCP is the central nodal agency for the prevention and control of vector borne diseases
  • Vector borne diseases that are being targeted: Malaria, Dengue, Lymphatic Filariasis, Kala Azar, Japanese Encephalitis, chikungunya

Directorate of National Vector Borne Diseases Control Programme

  • It’is the central nodal agency for the prevention
  • and control of vector borne diseases i.e. Malaria, Dengue, Lymphatic Filariasis, Kala-azar, Japanese Encephalitis and Chikungunya in India
  • It is under the aegis of Union Ministry of Health and Family Welfare.
  • Function: National level Technical Nodal office for framing technical guidelines & policies as to guide the states for implementation of Programme strategies.

6.1.1. INDIA AND ZIKA VIRUS

Why in news?

  • Recently the United States sent out an advisory informing its citizens in India about the number of confirmed Zika infections in India.

Background

  •  The WHO has placed India as a ‘Category-2’ country for Zika risk.
  •  A Category-2, the second highest on a four-point scale and that also includes 2015 Zika-hotspot Brazil, indicates that the virus is being actively transmitted within the country.
  •  Until April, India was a Category-4 country
    About zika virus
  •  Zika virus disease is caused by a virus transmitted primarily by Aedes mosquitoes. Aedes aegypti is a known vector of several other viruses including yellow fever virus, dengue virus and chikungunya virus.
  •  Zika can be passed through sex from a person with Zika to his or her partners.
  •  People with Zika virus disease can have symptoms including mild fever, skin rash, conjunctivitis, muscle and joint pain, malaise or headache. These symptoms normally last for 2-7 days.
  •  There is scientific consensus that Zika virus is a cause of microcephaly and Guillain-Barré syndrome.
  • An additional area of concern is the difference between Zika on the one hand and dengue or chikungunya on the other. While the latter conditions occur soon after a mosquito bite, the presence of the Zika virus will be known six months later, after the birth of microcephalic infants.
  • US scientists have developed a plant-based Zika vaccine that could be more potent, safer and cheaper to produce than other medicines being developed for the disease.
  • It is developed using tobacco plant and targets a key protein called DIII, which envelopes the outside of the Zika virus and plays a key role for the virus to infect people.

6.1.2. MONKEY FEVER

Why in news?

  • Scientists have traced the source of a re-emerging disease, Kyasanur Forest Disease (KFD) or “monkey fever”, to cashew plantations in Goa.

Monkey Fever Symptoms

  •  High fever with headache, followed by haemorrhagic symptoms such as bleeding from the nose, throat and gums
  •  Gastrointestinal bleeding,
  • Muscle stiffness, tremors, absent reflexes and
  •  Mental disturbances.

What is monkey fever?

  •  It is caused by Kyasanur forest disease virus (KFDV), a member of the virus family Flaviviridae, which also causes yellow fever and dengue.
  •  It was first detected in 1957 in Shimoga, Karnataka and is endemic to South Asia.
  • Monkey fever is so named because it primarily affects black-faced langurs and red-faced bonnet monkeys and result in death. Even when the monkey dies still the KFD virus gets transmitted through ticks thriving on monkeys.

 

  • The Hard ticks (Hemaphysalis spinigera) are the reservoir of KFDV. These ticks are known to thrive in the Western Ghats and transmit the disease to humans.

6.1.3. ELEPHANTIASIS

Why in news?

  • Recently, it was speculated that Government will miss out the set deadline to eliminate Elephantiasis.

Elephantiasis or Lymphatic Filariasis

  • It is a parasitic disease caused by the parasitic worms called filial worms which is spread by the bite of the infected black flies and mosquitoes.
  • The disease parasite is usually acquired during childhood. The larvae in the human can live in human beings for up-to 5-8 years without showing any symptoms; however the lymphatic system is damaged.
  • Elephantiasis leads to severe swelling in arms, legs, knees and genitals causes disfigurement and disability.

 

Burden of Disease

  • India alone accounts for 40% of world’s disease burden with over 31 million microfilaraemics, 23 million cases of symptomatic filariasis, and about 500 million individuals at risk of contracting the disease.
  • India had set the ambitious target to eradicate the disease by 2020 which was earlier set at 2015 under the National Health Policy 2002.

Efforts to eradicate the Disease in India

  • In 1995,  government  launched  National Filaria Control Program
  • In India, since 2004, Mass Drug Administration (MDA) is being carried on as a part of the Hathipaon Mukt Bharat (Filaria Free India) programme for preventive

6.1.4. KALA AZAR

Why in news?

  • India has missed the deadline (December 2017) of eliminating Kala Azar (Visceral leishmaniasis or Black fever or Dum Dum fever).

Background

  • In 2017 budget speech, the Finance Minister had announced for elimination (reducing to less than one case in 10,000) of Kala Azar by 2017. It was also reiterated by the National health policy 2017.
  • In 2014, the government launched the Kala Azar Elimination Programme with support from various international agencies.
  • However, endemic blocks have increased from 61 to 68 in 17 districts of Bihar and Jharkhand.

 

Ancient remedy for Kala Azar

  • Scientists from Indian Institute of Chemical Biology in Kolkata tested ancient remedy described in Charaka Samhita to fight drug-resistant kala-azar.
  • The compound called mahanine was isolated from leaves of curry plant commonly used in Indian kitchens has been found to inhibit the growth of kala-azar parasite.

6.1.5. JAPANESE ENCEPHALI TIS (JE)

Why in news

  • In August 2017, around 30 children affected by JE admitted at Gorakhpur’s BRD Medical College had died over shortage of oxygen supply.
  • Encephalitis: It is a non-communicable disease that results in inflammation of the brain. The patient’s central nervous system is affected. It can be caused due to bacterial or viral infections of the brain, injection of toxic substances or increased complications of an infectious disease.
  • It’s transmitted by the infective bite of the Culex species of mosquitoes
  • It belong to the same genus as dengue, yellow and West Nile viruses
  • Japanese Encephalitis is covered under Universal
  • Immunisation Programme (UIP).
  • Acute Encephalitis Syndrome (AES) including Japanese Encephalitis (JE) is a group of clinically similar neurologic manifestation caused by several different viruses, bacteria, fungus, parasites, spirochetes, chemical/ toxins etc
  • It is characterized by an acute onset of fever and clinical neurological manifestation that includes mental confusion, disorientation, delirium, or coma.
  • JENVAC: It’s first indigenous vaccine to protect children from Japanese encephalitis. It’s also the first vaccine to be manufactured in the public-private partnership mode between the Indian Council of Medical Research and Bharat Biotech.

6.2. NEGLECTED TROPICAL DISEASES

Why in news

  • WHO (World Health Organisation) in it’s report on neglected tropical disease (NTD) applauded the progress made on elimination of NTD.

What are Neglected Tropical Diseases

  • WHO defines NTDs as a diverse group of communicable diseases that prevail in tropical and subtropical conditions in 149 countries.
  • Vulnerability: Populations living in poverty, without adequate sanitation and in close contact with infectious vectors and domestic animals and livestock are those worst affected.
  • Situation in India: Diseases that are most prevalent in India include lymphatic filariasis, soil transmitted helminthiases, trachoma, visceral leishmaniasis, dengue, rabies, cysticercosis, Japanese encephalitis and intestinal worm infections (hookworms, whipworms and Ascaris worms).

National Programmes in relation to tropical diseases are being implemented:

  • National Vector Borne Disease Control Programme (NVBDCP): For control of Dengue and elimination of Kala-azar and Lymphatic Filariasis.
  • National Leprosy Eradication Programme: India has achieved the elimination of leprosy at national level in December 2005. Focus is now to achieve elimination of leprosy at district level.
  • National Programme for Control of Blindness: Services are provided for the control of Trachoma.
  • School Health Programme: services are provided for the prevention of Soil-transmitted Helminthiases.
  • National Deworming Day (February 10): Children between ages 1 to 19 through schools and anganwadi centres were dewormed in order to improve their nutritional status and well-being
  • WASH strategy: It’s a critical component of prevention and care for all NTDs. Provision of safe water, sanitation and hygiene is one of the five key interventions in the global NTD road map.
  • WHO NTD roadmap: It outlined bold targets for the control, elimination or eradication of 17 NTDs by 2020
  • Uniting to Combat NTDs: Leaders of several prominent global health and development organizations, together with industry partners, met in London in 2012 and pledged to unite in their efforts to support the achievement of the WHO 2020 goals in respect to 10 NTDs.
  • Pledge is known as London Declaration on NTDs
  • 10 NTDs are: Guinea worm disease, lymphatic filariasis,   blinding   trachoma,   sleeping sickness,leprosy,helminthes,schistosomiasis, river blindness, Chagas disease and visceral leishmaniasis (Kala Azar).

6.2.1. NATIONAL DEWORMING MISSION

Why in news?

 

  • Recently government celebrated the National Deworming Day.

About National Deworming Day

  • It was started in 2015 as a part of the National Health Mission, implemented in 11 States/UTs across all Government and Government-aided schools and Anganwadi centres.
  • It entails single fixed day approach to treat intestinal worms in all the children from 1 to 19 years on February 10 and August 10 each year.
  • Along with administering Albendazole tablets, some other activities are also performed such as behaviour change practices, cleanliness and hygiene guide, use of toilets, wearing shoes or slipper, washing hands before eating food and after using toilet, etc. in order to reduce the incidents of re-infection.

Soil Transmitted Helminth (STH) infection

 

  • It is caused by different species of parasitic worms which can live and replicate in the gastrointestinal system.
  • The STHs (hookworms, roundworms, whipworms) are transmitted by eggs present in human faeces, which contaminate the soil in areas where sanitation is poor.
  • Infected children are nutritionally and physically impaired. While deworming has been shown to reduce absenteeism in schools; improve health, nutritional, and learning outcomes; and increase the likelihood of higher-wage jobs later in life.

6.3. POLIO VACCINE

Why in news?

  • The World Health Organization has declared Gabon a “polio-free country”, given the lack of new reported or suspected cases in the central African country.
  • Now the disease is endemic only in Afghanistan and Pakistan, where the WHO recorded four cases this year—two in each country.

Polio: A fact sheet

  • Polio (or Poliomyelitis) is a highly-infectious viral disease which mainly affects young children and can result in permanent paralysis.
  • The virus is transmitted by person-to-person spread mainly through the faecal-oral route or, less frequently, by a common vehicle (e.g. contaminated water or food) and multiplies

in the intestine, from where it can invade the nervous system and can cause paralysis.

  • There is no cure and it can only be prevented through immunisation.
  • Types: Of the 3 strains of wild poliovirus (type 1, type 2, and type 3), wild poliovirus type 2 was eradicated in 1999 and no case of wild poliovirus type 3 has been found since 2012.
  • Difference between Oral Polio Vaccine (OPV) and IPV: OPV is made up of attenuated or weakened poliovirus and there is a risk of vaccine derived polio. IPV is made up of inactivated (killed) polio virus and will provide immunity from all three strains of polio.
  • India status: India was officially decalred Polio free by WHO in 2014.
  • However, samples from some states showed the presence of Type 2 vaccine derived polio virus (VDVP), which had undergone ten nucleotide changes.
  • If six or more nucleotide changes happen then it is called vaccine-derived poliovirus (VDVP).
  • VDVP is extremely rare and found in children with immune-deficiency and among populations with low immunity levels.

6.4. MOTHER-TO-CHILD TRANSMISSION OF HIV

 

  • What is it: HIV transmitted from a HIV positive mother to her child during pregnancy, delivery or breast feeding is called mother-to-child transmission (MTCT).

National Aids Control Organisation (NACO)

  • It is an organisation which was set up under Ministry of Health and Family Welfare for formulation of policies and implementation of programs for prevention and control of HIV/AIDS.

Child Friendly HIV Drug

  • Recently, Central Drugs Standard Control Organisation (CDSCO) has registered the child-friendly and heat-stable oral pellet formulation of the HIV drug lopinavir/ritonavir (LPV/r).
  • Significance: The lack of child-friendly HIV formulations is a major reason for a large treatment gap between adults and children. Due
  • to this gap paediatric HIV is considered neglected disease. The registration of the pellets is a positive sign as the needs of children are being addressed.

About CDSCO

  • Major functions include: Regulatory control over the import of drugs, approval of new drugs and clinical trials, meetings of Drugs Consultative Committee (DCC) and Drugs Technical Advisory Board (DTAB), approval of certain licences as Central LicenceIt is the national regulatory body for Indian
  • pharmaceuticals and medical devices under Ministry of Health and Family Welfare.

6.5. NOROVIRUS AT WINTER OLYMPICS

Why in news?

  • At the Winter Olympics in Pyeongchang, South Korea, there have been many cases of infection with Norovirus.

Details

  • Norovirus is a very contagious virus. It’s a common cause of gastroenteritis, or inflammation of the intestine.
  • It spreads from an infected person mainly by direct contact (such as shaking hands), by touching an infected surface or though contaminated water and food.

 

6.6. BIRD FLU

Why in news?

  • India has declared itself free from Bird Flu (highly pathogenic Avian Influenza – H5N1 and H5N8) and notified it to the World

Organisation for Animal Health.

  • The move will help it resume export of poultry products to the countries which had banned trade in such items early this year.

Avian Influenza

  • There are 3 types of influenza viruses: types A, B, and C. Influenza A viruses infect humans and many different animals
  • Influenza type A viruses are classified into subtypes according to the combinations of different virus surface proteins Haemagglutinin (H) and Neuraminidase (N).
  • Influenza A viruses can be classified as avian influenza, swine influenza, or other types of animal influenza viruses
  • Examples include avian influenza “bird flu” virus subtypes such as A (H5N1) and A(H9N2).

World organization for Animal Health

 

  • It is recognised as a reference organisation by the World Trade Organization (WTO) and in 2017 has a total of 181 Member Countries.
  • It maintains permanent relations with 71 other international and regional organisations.
  • Ban is lifted after 90 days of the surveillance is done by the organization.

6.7. H1N1 VIRUS (SWINE FLU)

Why in news?

 

  • Government removed antiviral drugs-oseltamivir and zanavir – from schedule X category allowing all pharmacies to sell and stock these drugs.
  • These drugs were earlier restricted as their misuse and overuse can lead to drug resistance.
  • Drugs and Cosmetics Rules, 1945: Any sale of medicine in the country is regulated under this act.
  • Drugs specified in Schedules H, H1 and X cannot be sold except on, and in accordance with the prescription of a Registered Medical Practitioner from a licensed premises.

About H1N1 Virus

  • It is a contagious respiratory disease caused by Type A strains of the Swine Influenza virus.
  • It enters body through inhalation of droplets or is transferred from a contaminated surface to eyes, nose or mouth and can spread from human to human.
  • It is called swine flu because in the past, the people who caught it had direct contact with pigs.

 

6.8. TUBERCULOSIS

Why in News?

  • A joint study conducted by Foundation for Innovative New Diagnostics (FIND) and Revised National TB Control Programme (RNTCP), has found that the Multi-Drug Resistant (MDR) TB is higher among children than expected.

Paediatric TB

 

  • Paediatric MDR-TB cases had not been documented so far.
  • Children are more prone to primary MDR –TB infection as they are in close contact with infected person.
  • TB diagnosis in children is complicated due to challenges associated with sample collection and poor sensitivity of tests like the Acid fast bacilli (AFB) smear.
  • Thus, the foundation FIND started rolling out GeneXpert to diagnose TB
  • Government had issued a specific guideline for paediatric TB under Revised National TB

Control Program (RNTCP).

 

  • RNTCP aims at diagnosing and treating TB throughout the country. It uses DOTS
  • (Directly Observed Treatment Short course) and DOTS-plus strategy (where there are significant cases of MDR-TB)
  • Recently, Moscow Declaration was also adopted in WHO Global Ministerial Conference on Ending Tuberculosis with an aim towards achieving SDG Goal 3.3.2 to end epidemic of TB incidence per 1000 population.

Drug Resistant TB

MDR-TB

  • It is TB that does not respond to at least isoniazid and rifampicin (2 of the most powerful first line drugs)
  • It is developed due to
  •  Inappropriate or incorrect use of antimicrobial drugs,
  •  Use of ineffective formulations of drugs (such as use of single drugs, poor quality medicines or bad storage conditions)
  • Premature treatment interruption.
  • Recently, Ministry of Health has approved Delamanid drug in order to combat the increasing burden of MDR-TB.
  • Delamanid will be inducted parallel to Bedaquiline under Revised National Tuberculosis Control Program (RNTCP) and not replace it

XDR-TB

  • It is resistant to at least four of the core anti-TB drugs such as levofloxacin or moxifloxacin, amikacin, capreomycin or kanamycin.)
  • Developed due to same mechanism as MDR-TB.

 

TDR-TB or XXDR-TB

  • TB which is resistant to all the first and second line TB drugs.
  • This makes it almost but not totally impossible to treat.

GeneXpert MTB/RIF Test

  • It detects the presence of TB bacteria (Mycobacterium tuberculosis), as well as tests for resistance and genetic mutation to the drug Rifampicin.

6.9.     HOME     GROWN     VACCINE FOR LEPROSY:

MYCOBACTERIUM INDICUS PRANII

Why in News?

  • National Institute of Immunology has developed Mycobacterium Indicus Pranii (MIP), an indigenous vaccine for leprosy.

What is Leprosy?

  • Bacterial disease caused by Mycobacterium leprae,
  • Affects the skin and peripheral nerves.
  • Long incubation period generally 5-7 years.
  • Timely diagnosis and treatment of cases, before nerve damage has occurred, is the most effective way of preventing disability.

Highlights

  • India has been declared Leprosy free country in 2005 because of less than one case per 10,000 population.
  • MIP is  now  being  introduced  into  the National Leprosy Elimination Programme (NLEP). It will boost the immune system against the bacterial disease.

 

6.10. INTENSIFIED DIARRHOEA CONTROL FORTNIGHT

Why in news?

  • The Ministry of Health and Family Welfare has launched the Intensified Diarrhea Control Fortnight (IDCF) in order to reduce child deaths due to diarrhea.

Background

  • WHO estimated diarrhea is second leading cause of death under five year age of children worldwide.
  • Despite of consistent decline in Infant Mortality Rate (IMR) and Under-Five Mortality Rate (U5MR) there has been 1 lakh deaths due to diarrhoea in India.

Intensified Diarrhea Control Fortnight (IDCF)

  • ASHA worker would undertake distribution of ORS packets to households with under-five children in her village.
  • ORS-Zinc Corners will be set-up at health care facilities and non-health facilities such as Schools and Anganwadi centres.
  • Apart from oral medicine Health ministry introduced Rotavirus vaccine under UIP will also help in reducing diarrhoea mortality.

What is Diarrhea?

  • Can be causes by virus, bacteria and parasite.
  • Diarrhea is having frequent, loose stools which causes dehydration
  • Can be spread from affected person, contaminated food or drinking contaminated water.
  • Can be prevented with safe drinking water, sanitation, breastfeeding/appropriate nutrition and hand-washing.

What is ORS (Oral Rehydration Salt Solution)?

 

  • ORS is a glucose-electrolyte solution containing salt and sugar water.
  • It can be simple, cheap and effective for all age
  • Supplemented with Zinc tablet, the duo is called ORS Jodi.

 

National Oral Rehydration Therapy (ORT) Program in 1985-86

  • Improving maternal knowledge related to the use of home available fluids.
  • Ensuring availability of ORS packets at health facilities.
  • Integrated part of Child Survival and Safe Motherhood (CSSM) Program.

 

6.11. FIRST INDIA-DESIGNED VACCINE PASSED WHO TEST

Why in news?

  • Recently,  India  made  ROTAVAC  vaccine and Typbar Typhoid Conjugate Vaccine received WHO pre-qualification.

 

ROTAVAC Vacccine

 

  • It is a low cost vaccine developed by Bharat
  • Biotech Limited under an innovative PPP model involving Ministry of Science and
  • Technology, institutions of the US Government and various NGOs.
  • It has been included in India’s Universal Immunization Program in 2016.

Typbar Typhoid Conjugate Vaccine

  • It is the world’s first typhoid vaccine, developed by Bharat Biotech limited that can be given to infants older than six months. It and confers long-term protection against typhoid fever.

Significance of Pre-Qualification

  • Accelerate availability of the vaccine to the developing countries with highest burden of diseases
  • Increases the scope for credible industrial, scientific and regulatory processes to develop more vaccines in the country.
  • ecessary for United Nation agencies like UNICEF, the Pan American Health Organization (PAHO) and GAVI (a vaccine alliance) to purchase the vaccine in partnership with developing countries.

 

Rotavirus

  • It is the most common cause of diarrhoea among infants and young children.
  • It usually transmitted by the faecal-oral route and infects and damages the cells in the small intestines and causes gastroenteritis.

Typhoid

  • It is caused by the bacteria Salmonella typhi.
  • The infection is often passed on through contaminated food and drinking water, and it is more prevalent in places where hand washing is less frequent.

6.12. NEW DEVELOPMENTS IN NON-COMMUNICABLE DISEASES

  • According to India State Level Disease Burden Report, over the past 26 years the pattern of diseases has shifted from communicable, maternal, neonatal, and nutritional diseases (CMNNDs) to non-communicable diseases (NCDs) and injuries.

6.12.1. INDIA HYPERTENSION MANAGEMENT INITIATIVE (IHMI)

Why in news?

  • Ministry of Heath and Family Welfare (MoHFW) and Indian Council of Medical Research (ICMR) launched IHMI.

More about IHMI

  • Aim: To reduce disability and death related to cardiovascular disease (CVD), by improving the control of high blood pressure (hypertension), reducing salt consumption and eliminating artificial trans-fats, leading risk factors for CVD.
  • This initiative will strengthen the cardiovascular disease component of the Health Ministry’s National Program for
  • Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) and is aligned with WHO’s Global HEARTS Initiative and National Guidelines.

6.12.2. JEEVAN BINDI

Why in news?

 

  • A Singapore based marketing agency and Maharashtra based NGO developed a Vermillion (Bindi) named Jeevan-Bindi which contains iodine.

Iodine

 

  • It is a trace mineral and a nutrient found naturally in the body and can be easily fortified with salt.
  • Humans need iodine for the production of thyroid hormones.
  • It needed for the cells to convert food into energy.
  • Deficiency leads to goiter, hyperthyroidism, stunted growth or intellectual disabilities.
  • Source: seafood, daily products, and other protein National Iodine Deficiency Disorders Control Programme 1992
  • It aims at bring the prevalence of IDD( to below 5% in the country
  • It ensures 100% consumption of adequately iodated salt (15ppm) at the household level.
  • Iodate the entire edible salt in the country.

 

Jeevan Bindi

  • It is medically enhanced version of regular bindi, embedded with iodine along with the adhesive base.
  • Bindi delivers the daily requirement of iodine 100-150 adsorption through the skin.
  • It needs to be worn every day for up to eight hour to be effective.
  • This initiative is supplemented with iodine pills available at community health centre.
  • The initiative focus pregnant women because the effects of iodine deficiency are most severe in them and reflected in new-born.

 

6.12.3. THALASSEMIA

Why in News?

  • On World Thalassemia day (May 8) various researchers and health experts called for National Policy on Thalassemia.

What is Thalassemia?

  • It is a genetic blood disorder with no cure except bone marrow transplant (BMT).
  • Characterised by abnormal production of haemoglobin in the body. The abnormality results in improper oxygen transport and destruction of red blood cells.
  • Lead to iron overload, bone deformities and in severe cases can cause heart diseases.
  • It requires regular blood transfusions as an effective measure to prolong life.
  • Thalassaemia is now considered as a disability under Rights of Persons with Disabilities Act 2016, rather than a health issue.

6.13. ANTIBIOTIC RESISTANCE: WHO REVISES ANTIBIOTICS PROTOCOL

Why in news?

  • WHO has revised antibiotics protocol to curb antibiotic resistance. This is the biggest revision of the antibiotics section in the essential medicines list (EML)

Antimicrobial Resistance (AMR)

  • It occurs when microorganisms such as bacteria, viruses, fungi and parasites change in ways that render the medications used to cure the infections and causing them ineffective.
  • It is the broader term for resistance in different types of microorganisms and encompasses resistance to antibacterial, antiviral, antiparasitic and antifungal drugs.
  • It occurs naturally but is also facilitated by the inappropriate use of medicines.
  • Microorganisms that become resistant to most antimicrobials are often referred to as“superbugs”.
  • It affects the, medical procedures such as organ transplantation, cancer chemotherapy, major surgeries etc. making them very risky.

WHO (World Health Organization)

 

  • It is a specialised agency of UN concerned with international public health.
  • It was established on 7 April 1948, headquartered in Geneva, Switzerland.
  • The WHO publishes World Health Report. WHO “Global action plan on antimicrobial resistance” 2015: it has 5 strategic objectives:
  • To improve awareness and understanding of antimicrobial resistance.
  • To strengthen surveillance and research.
  • To reduce the incidence of infection.
  • To optimize the use of antimicrobial medicines.
  • To ensure sustainable investment in countering antimicrobial resistance.

Other International Initiatives

  • ‘One Health’ approach: to designing and implementing programmes, policies, legislation and research in which multiple sectors communicate and work together to achieve better public health outcomes against the food safety, the control of zoonoses (diseases that can spread between animals and humans, such as flu, rabies), antimicrobial resistance etc.
  • World Antibiotic Awareness Week.
  • The Global Antimicrobial Resistance Surveillance System.
  • Interagency Coordination Group on Antimicrobial Resistance.

Details

WHO has divided the drugs into three categories: access, watch and reserve.

  • The ‘access’ category includes commonly used antibiotics. They will be available at all times as treatment for a wide range of common infections.
  • The ‘watch’ group covers antibiotics that are recommended as first or second choice treatment for a small number of infections.
  • Prescription of these drugs should be reduced to avoid further development of resistance.
  • The ‘reserve’ category includes antibiotics that are considered last-resort options and used only in the most severe circumstances such as for life-threatening infections due to multidrug-resistant bacteria.
  • Recently, Ministry of Science and Technology have released the Scoping Report on Antimicrobial Resistance in India.

Highlights of the report

  • In 2014, India was the highest consumer of antibiotics, followed by China and the United However, the per capita consumption of antibiotics in India is much lower than in several other high income countries.
  • India has some of the highest antibiotic resistance rates among bacteria that commonly cause infections in the community and healthcare facilities.
  • It has also pointed that the resistance to carbapenem class of antibiotics (one of the last-resort antibiotics to treat serious bacterial infections in humans) among various bacteria was extremely high.
  • Antibiotic-resistant bacterial infections are also increasingly reported among neonates.
  • Essential medicines are the medicines that “satisfy the priority health care needs of the population”.
  • These are the medications to which people should have access at all times in sufficient amounts. The prices should be at generally affordable levels.
  • The WHO publishes Model List of Essential Medicines (EML) every two years since 1977. It is used by countries to develop their own local lists of essential medicine.

 

Factors responsible for antibiotic resistance in India

  • Self-medication (to avoid financial burden)
  • Access to antibiotics without prescription
  • Use of pharmacies and informal healthcare providers as sources of healthcare.
  • Inadequate public sector diagnostic laboratory and Unaffordability of private labs
  • Mass bathing as part of religious occasions
  • Antibiotics as growth promoters in food animals and poultry
  • Effluents from the antibiotic manufacturing units leading to contamination of rivers and lakes
  • Disposal of untreated sewage into water bodies
  • Prevalence of various Healthcare Associated Infections (HAI).

Hospital Acquired Infections (HAI)

  • Also called nosocomial infections, HAI are passed onto the patients after being admitted at the hospital facility.
  • International Nosocomial Infection Control Consortium is an international scientific organisation that works to fight against healthcare associated infections.

 

Implications

  • Creates additional suffering for patients and comes at a high cost for their families.
  • It increases hospital stays and creates long-term disability
  • Increases resistance to antimicrobials
  • Increases cost burden for healthcare systems and causes unnecessary deaths.

Causes of HAI

 

  • Lack of proper Equipment, Understaffing and Overcrowding, Lack of knowledge of injection and blood transfusion safety, Prolonged and inappropriate use of invasive devices and antibiotics etc.
  • Recently, a Bengaluru firm received the international CARB-X grant to develop antibiotics to treat HAI. CARB-X a public-private international partnership to address the gap in antibiotic R&D and to improve diagnosis & treatment of drug-resistant infections.

Policy/Initiatives of Government

  • National Policy for Containment of AMR 2011 provided regulations for use of antibiotics for humans as also for veterinary use along with a hospital based surveillance system for monitoring antibiotic resistance.
  • Indian Council of Medical Research (ICMR) has set up a National Anti-Microbial Resistance    Research   and   Surveillance Network (AMRRSN) to enable compilation of National Data of AMR at different levels of Health Care.
  • FSSAI has set certain guidelines limiting the antibiotics in food products such as fish and honey.
  • Recently, Ministry Of Health has notified an amendment to the Food Safety & Standards (Contaminants, Toxins & Residues) Regulations, 2011, to set maximum permissible limits for the presence of antibiotics and other drugs in meat and meat products, including chicken.
  • Red Line Campaign on Antibiotics 2016, was launched to create awareness regarding rational usage and limiting the practice of self-medication of antibiotics among the general public.
  • National Health Policy 2017 envisions a holistic framework against AMR.
  • The National Action Plan on Antimicrobial Resistance (NAP-AMR) 2017 has assigned coordinated tasks to multiple government agencies involving health, education, environment, and livestock to change prescription practices and consumer behaviour and to scale up infection control and antimicrobial surveillance.
  • The strategic objectives of NAP-AMR are aligned with the WHO’s Global Action Plan on AMR (GAP-AMR).

6.14. PLANT DISEASES

  • Plant disease is an impairment of the normal state of a plant that interrupts or modifies its vital functions. Types of Plant diseases.
  • Rust: Fungal disease that attacks roses, hollyhocks, snapdragons, daylilies, beans, tomatoes and lawns.
  • Wheat blast: Fungal disease that attacks the standing crop. Fungus responsible for the wheat blast disease is known as Magnaporthe oryzae
  • Pink Bollworm: It is a type of insects attack on cotton which has severely impacted cotton plantations in various parts of the country.
  • Blight: Blight is easily recognizeable by the suddent death of all plant tissue including leaves, stems and flowers. Blight is typically casued by wet and humid conditions.
  • Cotton Whitefly: Whiteflies are sucking insects and their feeding removes nutrients from the plant
  • Chlorosis (discoloration): Chlorosis is when a green tissue turns yellow. It has many causes including pathogens, lack of nutrients, and lack of water.
  • Leaf Spot: Leaf spots are yellow or brown lesions (often look like burn marks) that takes place on leaves. These are caused by pathogens, fungi, pesticide damage and insect feeding.

6.15. FORTIFIED FOODS TO TACKLE MALNUTRITION

Why in news?

 

  • Targeting children, Rajasthan, MP, Haryana and Himachal Pradesh governments have begun using fortified oil for their mid-day meal schemes.
  • West Bengal and A&N Islands are distributing fortified wheat flour through the public distribution system.
  • Enrichment of food is a process by which nutrients are added. Typically, the added nutrients were present in the food in its original form, but were removed at some point during processing.
  • Fortification of food is the practice of deliberately increasing the content of an essential micronutrient, i.e. vitamins and minerals (such as iron, iodine, zinc) in a food, so as to improve the nutritional quality of the food supply
  • Biofortification is the process by which the nutritional quality of food crops is improved through agronomic practices, conventional plant breeding, or modern biotechnology. It aims to increase nutrient levels in crops during plant growth rather than through manual means during processing of the crops.
  • The Food Safety and Standards Authority of India (FSSAI) released a set of standards and a logo (+F logo) last year for all fortified packaged food.

 

6.16. MILK ADULTERATION

Why in news?

  • A recent study on milk samples in Delhi found wide adulteration.
  • Adulteration: Most common harmful adulterants include starch, chlorine, hydrated lime, sodium carbonate, formalin and ammonium sulphate. Milk producers use these to scrimp on milk portions and prepare “synthetic milk” by mixing urea, caustic soda, refined oil and common detergents.
Common AdulterantUsed for
Calcium Carbide and Copper Sulphate
For ripening of Fruit
Colours (Metallic- not permitted)To enhance the appearance of Fruits & vegetable
Oxytocin (triggers early puberty among girls, male breast etc.)
Induce growth in Vegetable and animals
SaccharinInduce sweetness in fruits
Parrafin WaxFor Shiny appearance of fruits
Metanil yelllowFor colouring yellow dal
Related facts
• Neutralizers are substances added to prevent

curdling and increase the shelf life of milk. They could be added in the form of caustic soda, sodium bicarbonate and sodium carbonate.
  • curdling and increase the shelf life of milk. They could be added in the form of caustic soda, sodium bicarbonate and sodium carbonate.

NUCLEAR RESEARCH

3.1  INTRODUCTION

  • Nuclear physics is the field of physics that studies the constituents and interactions of atomic nuclei. The most commonly known applications of nuclear physics are nuclear power generation and nuclear weapons This chapter explains the fundamentals of nuclear power generation through nuclear reactors, various types of reactors and India’s nuclear power programme. Let us start with understanding Nuclear Fission, Nuclear Fusion and Nuclear fuels.

3.2  DEFINITIONS

  • Nuclear Fission
    • Nuclear fission is either a nuclear reaction or a radioactive decay process in which the nucleus of an atom splits into smaller parts (lighter nuclei) often producing free neutrons and protons(in the form of gamma rays) and

releasing a very large amount of energy, even by the energetic standards of radioactive decay.

3.2.2 Nuclear Fusion

  • Nuclear fusion is a process by which two or more lighter nuclei fuse to form a single heavier nucleus.

3.2.3 Nuclear chain reaction

  • Fission is manmade nuclear reaction induced by a neutron. Nuclear fission produces energy for nuclear power and to derive explosion of nuclear weapons, certain substances called nuclear fuels undergo fission when struck by fission neutrons in turn omit neutrons when they break
  • This makes possible a self- sustaining nuclear chain reaction that releases energy at a controlled rate in a nuclear reactor or at a very rapid uncontrolled rate in a nuclear weapon.

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3.3  NUCLEAR FUELS

  • Nuclear fuel is a material that can be ‘burned’ by nuclear fission or fusion to derive nuclear energy. Nuclear fuel can be categorised into fissile and fissionable material. Fissile material is one that is capable of sustaining a nuclear chain reaction of nuclear fission and releases nuclear energy.

(E.g.) Plutonium (Pu)

  • Natural Uranium (U-238)
  • Enriched Uranium (U-235)
  • Thorium derived  Uranium (U-233)

3.3.1 Plutonium (Pu)

  • Atomic no. 94
  • A transuranic element (Any element which has atomic number greater than 92)
  • It does not occur in nature
  • It is man-made in nuclear reactors by conversion of Uranium into PU, by a process of neutron-irradiation (activation- induced radio activity in material).

Plutonium is an ideal nuclear fuel because

  • It releases more nuclear energy per unit than any other nuclear material
  • It undergoes nuclear fission both in the fast- and slow-moving neutron
  • It has a higher breeding radio (average no of fission atoms created per fission event)
  • It releases less xenon gas which is radio-active and thus less poisonous than any other nuclear fuels.

Isotopes of Pu:

  • Plutonium occurs in two difference isotopes Pu-239 and Pu-240
  • If the concentration of Pu239 Isotope, in the Plutonium core is more than 90%, it is called weapon grade Plutonium. This is so because Plutonium undergoes nuclear fission more steadily and does not disintegrate too early. Thus it burns up a powerful blast and the nuclear energy yield is more
  • If the Pu240 Isotope concentration in Plutonium core is more, it is called reactor-grade Plutonium. Pu240 undergoes nuclear fission rapidly and crumbles too early. Therefore, it is used in nuclear reactors for power

3.3.2 Natural Uranium (U-238)

  • It is a poor nuclear
  • It undergoes nuclear fission only when bombarded by a fast- moving neutron. Therefore, it means very little or no moderator. If heavy water is used in such reactor, it is used primarily as coolant, but not as moderator.

3.3.3 Enriched Uranium (U-235)

  • It is an excellent nuclear
  • It undergoes nuclear fission only when bombarded by a slow moving neutron. Therefore, it needs the use of a moderator to slow down the speed of neutrons without capturing them.

3.3.3.1 Enrichment of Uranium

  • Natural Uranium that is mined, contains up to 0.7% of the Isotope, U-2 The process of isolating U-235 isotopes is called enrichment of Uranium. It is done with the help of Ring Magnet (or) Nuclear Laser method.

Low Enriched Uranium (LEU):

  • If the concentration of U-235 Isotopes is the Uranium core is 4% or less, it is called LEU. It can be used in nuclear reactor for power

Highly Enriched Uranium (HEU):

  • If the concentration of U-235 Isotope is Uranium core is more than 20%, it is called HEU. For the manufacturing of nuclear weapons, we need a concentration of U-235, more than 80%.

3.3.4 Thorium derived Uranium (U-233)

  • It does not occur in nature
  • It is produced in a nuclear reactor by neutron irradiation
  • It is a good nuclear fuel that undergoes nuclear fission when bombarded by a fast moving electron.

3.3.5 Heavy Water

  • Chemically known as Deuterium Oxide.
  • It is ordinary water in which ordinary Hydrogen Isotopes are replaced by heavier Deuterium isotopes of
  • It is the most preferred moderator.
  • India has achieved self- sufficiency in the production of Heavy
  • Heavy water plants are in
    • Manuguru(AP),
    • Thal (Maharashtra),
    • Hazira(Gujarat),
    • Kota(Rajasthan),
    • Baroda(Gujarat),
    • Tuticorin (TN),
    • Nangal(Punjab),
    • Talcher(Orissa)

3.4  NUCLEAR REACTOR AND ITS COMPONENTS

  • A nuclear reactor is a device used to initiate and control a sustained nuclear chain

The following are the essential components of a nuclear reactor

  • Fuel: The material containing fissile isotope is called reactor fuel. U235, Pu239 and U233 are used as fuel in the cylinder. The fuel is sealed in aluminium cylinder and kept in the form of rods. Natural uranium contains 99.28% of U238and only 0.72% of fissile U235.  The fissile U235 fuel is called enriched uranium.
  • Moderator: The moderator is a material which is used to slow down the neutrons produced by nuclear fission. Graphite, Heavy water (D20), Berillium and itsoxides are used as moderators. A good moderator should have high boiling point and low atomic number.
  • Control Rods: In order to control the chain reaction, control rods are used. These rods are made up of neutron absorbing materials. Cadmium, boron or Hafnium rods are used as control rods. When the control rod is completely pushed into the fuel, the neutrons are absorbed and hence the chain reaction stops. If the rods are withdrawn, stronger will be the chain reaction.
  • Coolant: A material used to absorb the heat generated in chain reaction is called coolant. The heat carried by coolant is used to convert water into steam which in turn runs the turbines to produce electricity. Ordinary water, heavy water, air, carbon- dioxide, helium gas and liquid sodium and are used as coolants. Heavy water serves both as moderator and as coolant. A pump is provided to pump the coolant into the reactor. The coolant should have high boiling point and high specific
  • Neutron reflector: Neutron reflector is a material surrounding the fuel and

moderator. It is used to reflect the escaping neutrons back into the reactor. This minimises the leakage of neutrons.

  • Shielding: The radiations emitted during nuclear fission reactions are very dangerous and harmful to living beings. To protect the people operating the reactor it is surrounded by thick lead lining and concrete wall of thickness about 2 to 2.5

3.5 NUCLEAR REACTOR TYPES

  • Thermal Reactors
    • These reactors make use of slow moving neutron to bring about the nuclear fission reaction. It uses Plutonium (or) Enriched Uranium as the fuel and uses a moderator. It is resistant to proliferation of nuclear weapons and thus, the most commonly found nuclear reactors of the world.

3.5.2 Fast Reactors

  • It makes use of a fast moving neutron to bring about a nuclear chain reaction. It uses Plutonium
    or Natural Uranium or Thorium derived Uranium as its fuel and uses very little / no moderator.Indis’s indigenously developed fast reactors are at
  • RawatBhatta (Raj)
  • Kalpakkam (Tamil Nadu)
  • Narova (U.P.)
  • Kakrapur (Gujarat)
  • Kaiga (Karnataka)

3.5.3 Breeder Reactors

  • It produces more fissile material than it burns by converting a fissionable material into a fissible material. The Fast Breeder Reactors will be the core of the India’s nuclear power programme and all the 2nd General Nuclear reactors of India will be
  • The world’s only operational FBR, known as Fast breeder Test Reactor (FBTR) has been established by the Indra Gandhi Centre for Atomic Research (IGCAR), Kalpakkam. On the basis of the FBTR successful operation, IGCAR is at present engaged in the construction of a prototype FBR (PFBR) with 500 MW capacity at Kalpakkam, which  is expected to be commissioned by end of 2014.

3.6  INDIA’s NUCLEAR POWER

PROGRAMME

  • It is formulated by HomiBhabha and it involves the development of 3 generations of nuclear reactors successively. It aims to make use of vast thorium deposits of

1st Generation reactors (PHWR):

  • These reactors have been initially designed to have a capacity of not more than 250 MW each. They are to be established at Rawatbhatta, Kalpakkam, Narora, Kakrapur & Kaiga. These reactors use natural uranium as the fuel and heavy water as the coolant. They are all, Pressurized Heavy Water Reactors (PHWR). They generate power and produce Plutonium as the by product. India has designed and established 540MW capacity 1stgeneration reactors and has drawn up plans to construct 700 MW capacity PHWR

2nd Generation Reactors (FBR):

  • They will be of 500 MW capacity of each. The 1st such reactors will be set up at Tarapur. They will be FBR. They will use Pu derived from the 1st Generation reactors as fuel and convert Thorium into U-2 They will use liquid sodium as coolant. The Prototype FBR is under development at Kalpakkam and our country has proposed to under take 4 FBRs during 12thfive year plan.

3rd       Generation   Reactors (Thermal breeder reactor):

  • They will be of 1000MW capacity of each and will use U-233 derived from 2nd reactors as the fuel and convert Thorium into more U-233. Thus the 3rdgeneration reactors will be Thorium cycle reactors. They will be cooled by light water (Demineralized water – water from which minerals are removed). They will be culmination of exploitation of vast Thorium resources in India.

3.6.1 Thorium deposits

  • Thorium deposits are found in the Monazite sands of Kerala, Tamil Nadu, Andhra Pradesh and Orissa. India has the largest Thorium deposits of the world, estimated to          be 5,00,000tones,whereas, the known Thorium deposits of India are likely to last for about 30 years.Thorium if exploited can provide energy security for India nearly 300

3.6.2 Spent Fuel

  • The remains of a nuclear fuel, obtained from a nuclear reactor, after the fuel has been burnt, is known as spent fuel. It is not entirely a waste. It contains useful, radio active substances, like Pu, Mixed Oxides of U (MOX), U-PU carbide fuel etc, of which Pu is the most important by product. These fuels can be subsequently used as fuels in nuclear
  • India set up its 1st reprocessing plant at Tarapur (1964) and became the 5th country in the world to develop nuclear reprocessing technique. The Tarapur reprocessing plant is called Power Reactor Fuel Reprocessing Plant (PREFRE). It has  capacity of 100 tonnes/annum.The 2nd reprocessing plant was set up in Trombay with 100 tonnes capacity. The 3rd  was KARP 125 Kalpakkam Reprocessing plant with 125 tonnes capacity. All the 3 plants are capable of isolating both PU-239 AND pu-240 Isotopes, strengthening India’s strategic and civilian nuclear programme.

3.6.3 Russian Reactors

  • On the basis of original agreement signed by India and former Soviet Union in 1988, Russia has been constructing 2 thermal reactors of 1000 MW capacity each at Koodankulam (Tamil Nadu). Under an agreement signed in October 2001. Russia will supply 90% of components, LEU as the fuel and heavy water as the moderator. The cost of the 2 reactors will be $2 billion. They will be constructed by Russia as a Turn- key project. Both the reactors will come under International Control.

3.7 NUCLEAR VISION – 2020

  • It was formulated by Bhabha Atomic Research Centre, in 1 It aims to generate 20,000 MW of nuclear power by 2020, contributing 10% of the total power generated in the country. It shall be achieved by establishing indigenous and imported reactors.
  • India has a flourishing and largely indigenous Nuclear Power Programme and expects to have 14,600 MW Nuclear capacity on line by Nuclear Power Corporation of India Ltd (NPCIL) is the public sector company which owns, constructs and operates nuclear power plants in India. NPCIL has a plan to put up a total installed nuclear power capacity of 63,000 MWe (Megawatt energy) by the year 2032. India’s nuclear power programme has 14 reactors in
    operation and eight power reactors under construction.
  • It aims to supply 25% of electricity from Nuclear Power Programme. Because India is outside the Nuclear Non Proliferation Treaty (NPT) due to weapons programme, it was for

34  years  largely  excluded  from trade in Nuclear Plant or materials,  which  has  hampered tis development  in civil Nuclear energy until 2009.

  • Due to these trade bans and lack of indigenous Uranium, India has uniquely been developing a

nuclear fuel cycle to exploit its reserves of Thorium. India has a vision of becoming a world leader in nuclear technique due to its expertise in fast reactors and thorium fuel cycle.

  • As of 2015, India has 21 nuclear reactors in operation in six nuclear power plants, generating 5780 MW. Some important operating nuclear power reactors and power reactors which are under construction are shown in the tables

OPERATIONAL REACTORS

Power station OperatorStateTypeUnitsTotal capacity (MW)
KaigaKaiga Atomic Power Station (KAPS)NPCILKarnatakaPHWR220 x 4880
KakraparKakrapur Atomic Power Plant (KAPP)NPCILGujaratPHWR220 x 2440
KalpakkamIndira Gandhi Atomic Research Centre (IGCAR)NPCILTamil NaduPHWR220 x 2440
NaroraNarora Atomic Power Plant (NAPP)NPCILUttar PradeshPHWR220 x 2440
RawatbhataRajasthan Atomic power station (RAPS)NPCILRajasthanPHWR100 x 1
200 x 1
220 x 4
1180
TarapurTarapur Atomic Power Station (TAPS)NPCILMaharashtr aBWR (PHW R)160 x 2
540 x 2
1400
KudankulamNPCILTamil NaduVVER-10001000 x 22000
Total215780

NUCLEAR PLANTS UNDER CONSTRUCTION

Power stationOperatorStateTypeUnitsTotal capacity (MW)
KalpakkamBhaviniTamil NaduPFBR500 x 1500
KakraparNPCILGujaratPHWR700 x 21400
RawatbhataNPCILRajasthanPHWR700 x 21400
Total64300
  • PROTOTYPE FAST BREEDER REACTOR (PFBR)

  • The reactor is been constructed at Kalpakkam by Indira Gandhi Centre for Atomic Research (IGCAR). It has been designed and developed on the basis of successful operation of Fast Breeder Test Reactor since 1
  • The PFBR will be a 500 MW capacity facility and cost about Rs.3500 Crores. It will use Plutonium – Uranium Oxide as fuel and liquid sodium as Coolant. Its construction started in 2004 and is expected to commission in 2014. India is the only country in the World that is actively engaged in the research and development of fast breeder reactors  and  the  conversion  of Thorium into U-235. In order to manage  the  PFBR  Project,  the Atomic Energy Commission has given the responsibility to BhartiyaNabhikiyaVidyut  Nigam Ltd.  (BHAVINI). The  PFBR will be  a  major  technological development for Department of Atomic Energy and is compared to IGMDP, LCA Programme and Nuclear Submarine Programme.
  • The development of breeder technology will help in converting Thorium in to U-233, but will also be multiply/amplify energy from natural Uranium manyfold, by converting about 70% of non- fissile Uranium to fissile Plutonium.
  • The FBR technology is to achieve energy security and be self- sufficient in the area of nuclear fuel. It is estimated that the thorium deposits of India can help in generating 5 GW of nuclear energy in the next 50-100 years.

Other advantages of Fast Breeder Technology:

  • A FBR increases fuel utilisation by about 60 times of what is possible in a Pressurized
  • It helps in generating electricity and building up nuclear fuel inventory in the form of Uranium-233 and
  • The radio activity that is released into atmosphere is less as compared to other types of reactors.

3.9  NUCLEAR     SUPPLIERS GROUP (NSG)

  • Nuclear Suppliers Group is a group of nuclear supplier countries which seek to contribute to the non- proliferation of nuclear weapon through the implement of guidelines for nuclear exports and nuclear related
  • Originally known as London Club, it was set up as an adhoc body in 1975 by7 countries, namely USA, Former Soviet Union, United Kingdom, France, Canada, Germany and Japan. At present, it consist of 46 members, all of them are parties to NPT. The notable non-members of Nuclear Suppliers Group are India, Israel & Pakistan. It was established to tighten export control to ensure that the nuclear facilities and materials are sold exclusively for peaceful use, were not diverted for military purposes. The guidelines of the NSG originally prohibited its member countries to export nuclear fuel, nuclear components or nuclear reactors to any country that refused to accept international safeguards under International Atomic energy Association (IAEA) supervision over the nuclear material supplied to ensure that the imported nuclear material/ nuclear facilities were not misused for military purposes. Thus the guidelines initially demanded that the reactor specific safeguards shall be accepted by the receiving country.
  • In 1992, the Nuclear Suppliers Group introduced 2 major changes in its guidelines. The first change demands that the receiving country shall accept full scope safeguards under which it would place all its nuclear facilities including its indigenous facilities under international safeguards. The second change imposed more stringent controls over dual use items which lead to IAEA implementing on its members, a more stringent

control known as Additional Protocol. While India is prepared to accept the additional protocol and reactor-specific safeguards, it is not ready to accept full scope safeguard as it would amount to signing the NPT through the back-door.

  • The Indo-US Civilian Nuclear Programme aims to relax the Nuclear Suppliers Group guidelines so that India-specific waiver is made by the Nuclear Suppliers Group in its guidelines and India will be allowed to enter into nuclear trade with the members of Nuclear Suppliers Group. However, all decisions to Nuclear Suppliers Group are taken on consensual

3.9.1 Additional Protocol:

  • All the members of NPT are under an obligation to sign the additional protocol formulated by the IAEA, under which the IAEA will have the right to carry out unannounced and intrusive inspection on the Nuclear facilities of the member countries.

3.10 INTERNATIONAL ATOMIC ENERGY ASSOCIATION (IAEA)

  • It is one of the related bodies of UN, established in 1957 and thehead quarters is in Vienna.Theresponsibilities of IAEA are
  • To assist countries in harnessing nuclear energy for peaceful purposes.
  • To carryout inspections to ensure that any nuclear assistance, one country received from another is used exclusively for peaceful purposes and not diverted for weapons
  • The Non-nuclear weapon states that are members of Nuclear Power Plant are under an obligation to place all their nuclear facilities under IAEA inspection. This is to ensure that no nuclear fuel is diverted by a have-not country for military purposes. Thus, the IAEA is mainly concerned with regulatory aspects in the field of nuclear science and is an instrument of nuclear non-proliferation.
  • India is the member of the executive council of IAEA. On the basis of the Indo-US civilian nuclear agreement, India has successfully concluded a India- specific safety agreement with IAEA in July 2 This is one of the requirements India had to accomplish for the nuclear deal to become operational.

3.11  WORLD ASSOCIATION OF NUCLEAR OPERATORS (WANO )

  • It is a non-governmental body of nuclear operators found after the Chernobyl Nuclear Accident (1986).
  • Established in 1989
  • Based in London
  • Main function – domain of safety of reactor
  • It certifies safety aspect of nuclear reactors that are open to inspection. India had voluntarily agreed to place the 2 nuclear reactors each at Kakrapur and Narora for peer review of
  • Indian Nuclear Scientists took part in peer reviews held in USA, Japan and South Korea. This helps them to implement similar safety aspects in Indian Nuclear facilities. Experts from 33 countries are represented in WANO including India.

3.12 NUCLEAR FUSION

  • Nuclear fusion is a nuclear reaction between light atomic nuclei as a result of which a heavier nucleus is formed and enormous quantity of nuclear energy is released. For the fusion to be possible, the reacting nuclei must possess sufficient kinetic energy to overcome the repulsive force between them. Therefore, the temperature that is associated with fusion reaction is of billions of degree

The advantages of fusion reaction over fission reaction are

  • Fusion reaction is almost free from radio-active fallout. There is no associated problem of disposal of radioactive fuel. Thus, it is a clean form of
  • The nuclear fuel needed for fusion process is available in plenty in the form of sea Therefore, it is a nearly inexhaustible source of energy.
  • A fusion reactor, by its very design nature can never explode. If any accident takes place, the critical temperature will fall and fusion reaction will come to an end.

3.12.1 Nuclear Fusion Reactor

  • A fusion reactor is built on the basis of TOKOMAK It is a Russian acronym for Toroidal Magnetic Chamber. It was designed by the Soviet Scientist, Lex Art Simorich in 1967. A TOKOMAK is enclosed by powerful magnets which by repulsive force keep the atomic nuclei that are in a state of plasma within the confines of the chamber, without coming into physical contact of the plasma. This helps in not only containing the plasma within the chamber, but also in maintaining the high temperature above the critical level which is essential for igniting and sustaining the fusion reaction.

3.12.2 Fusion Research in India:

  • Fusion research has been going on Tata Institute of Fundamental research (TIFR), Bhabha Atomic research Centre (BARC), Saha Institute of Nuclear Physics, Kolkata. Physical Research Laboratory, Ahmedabad. The research PRL led to the establishment of Institute for Plasma Research (IPR) at Russia, Japan, China, South Korea, India, Europe& USA.  The reactor is constructed under the supervision of  IAEA. It  is being constructed at Cadarache in South France. It is expected to start the 1st  Plasma Operation in 2020. A commercial fusion reactor is expected to be ready for power generator in 2050. increase the plasma confining time. Therefore, the SST-1 also forms  the  basis  of  the  ITER International Thermonuclear Experimental Reactor design. India has ultimately been admitted to ITER in December
  1. The ITER Project includes at present 7 countries, namely

BIOTECHNOLOGY

1.1. GENE THERAPY

Why in news?

  • Recently, U.S Food and Drug Administration (USFDA) approved a Yescarta (axicabtagene ciloleucel) therapy to treat adults with certain types of large B-Cell lymphoma (blood cancer).
  • Yescarta uses CAR (chimeric antigen receptor) T-cell therapy for treatment.

About Yescarta therapy

  •  It is a type of gene therapy that turns cells in the patient’s body into a “living drug” that targets and kills cancer cells.
  •  It has been given Orphan Drug Designation, under which it will be provided with financial incentives to encourage the development of drugs.
  • Living Drug – Genetically modified cells are that are infused back into patients in CAR T-cell therapy, continue multiplying to fight disease for months or years. That’s why these immunotherapy treatments are called “living drugs.”
  • Orphan Drug – A biological product or medicine that is intended to treat diseases so rare that sponsors are reluctant to develop them under usual marketing conditions. According to WHO, disease having fewer than 100 patients per 100,000 population is described as rare disease and fewer than 2 patients per 100,000 is described as ultra rare disease. Examples of the rare diseases are haemophilia, thalassemia etc.
  • Genes – They are the biological templates the body uses to make the structural proteins and enzymes needed to build and maintain tissues and organs. Humans have about 20,000 genes bundled into 23 pairs of chromosomes all coiled up in the nucleus of nearly every cell in the body.

Human immune system?

  • The Immune system is a complex network of cells and organs that work together to defend against foreign substances (antigens-bacteria, virus etc.). Various cells associated are:
  •  B-cell – It is a type of white blood cell that makes antibodies. Antibodies are large Y-shaped proteins which bind to specific antigens. This signals the other cells of the immune system to get rid of the invading microbes.
  •  T-cell – These are designed to recognise the molecular signatures of particular proteins, such as those from bacteria, in order to activate an immune response.
  •  Macrophage – It is the first cell to recognize and engulf foreign substances. It may break down
  • these substances and present the smaller proteins to the T lymphocytes .

1.2. GENOME SEQUENCING OF RAGI

Why in news?

  • Recently, Genome sequencing of Ragi has been done.

Ragi/Finger Millet:

  • • It was introduced to India in around 3,000 BC.
  • • It has a low glycemic index, so preferred by diabetics.
  • • Ragi is drought resistant and is the main crop of dry land farmers.
  • • It occupies 12% of global millet cultivation area.
  • • Karnataka, which has the second largest drought-prone crop land after Rajasthan, leads in its cultivation.

What is Genome sequencing?

  • Genome sequencing is figuring out the order of DNA nucleotides, or bases, in a genome i.e. the order of As (Adenine), Cs (Cytosine), Gs (Guanine), and Ts (Thymine) which make up an organism’s DNA. The human genome is made up of over 3 billion of these genetic letters.
  • It may provide new information on the genetic basis of poorly understood diseases, with the potential to provide new therapies.

DNA or deoxyribonucleic acid

  • It is the hereditary material in humans and almost all other organisms.
  •  Most DNA is located in the cell nucleus (where it is called nuclear DNA), but a small amount of DNA can also be found in the mitochondria (where it is called mitochondrial DNA or mtDNA).
  • DNA is made up of molecules called nucleotides. Each nucleotide contains a phosphate group, a sugar group & a nitrogen base. The four types of nitrogen bases are adenine(A), thymine(T), guanine(G) & cytosine (C)
  • DNA is a double helix formed by base pairs attached to a sugar-phosphate backbone.
  • It can almost accurately ascertain the identity of a person, establish biological relationships between individuals etc. Thus, useful in investigations of crime, identification of unidentified bodies, or in determining parentage.
  • It can also reveal person looks, eye colour, skin colour as well as more intrusive information like their allergies or susceptibility to diseases.
  • It can be used in biometric identification in addition to Iris scanning, Retinal scanning and Voice recognition.

Biological computing

  •  For a long time, it was known that DNA can be used for data storage.
  •  This may be used in future to build biological computers that use biological materials such as RNA, DNA and proteins, mimic biological organisms or are used to study biological organisms
  • The biological computer may be an implantable
  • device that is mainly used for tasks like monitoring the body’s activities or making simple calculations or inducing therapeutic effects, all at the molecular or cellular level.

Some other genome sequencing projects

Human Genome Project (HGP):

1. HGP-Read:

  •  This was an international and multi-institutional effort that took 13 years [1990-2003] and $2.7 billion to produce a blueprint of the human genome.
  •  The HGP has revealed that there are probably about 20,500 human genes composed of over 3 billion base pairs.
  •  India did not participate in HGP-read.

2. HGP-Write:

  • This project was launched in 2016 to write or build an artificial human genome from scratch with sophisticated bioengineering tools.
  • HGP-write will aim to address a number of human health challenges. Potential applicationsincludegrowing transplantable human organs, engineering immunity to viruses in cell lines via genome-wide recoding, engineering cancer resistance into new therapeutic cell lines, and accelerating
    high-productivity, cost-efficient vaccine and pharmaceutical development using human cells and organoids.
  • The project could encourage broad intellectual property access via patent pooling.
  • But, the HGP-write will require public involvement and consideration of ethical, legal, and social implications.

The Genome Asia 100k initiative:

  •  A non-profit consortium called Genome Asia 100K based in Singapore has announced an ambitious plan to sequence 100,000 Asian individuals in hopes of accelerating precision medicine applications for Asian populations.
  •  Bangalore-based MedGenome has also teamed up with it.

1.3. THREE PARENTS BABY

Why in news?

  • UK became the first country to have officially approved procedures to create “three-parent” babies.
  • About “three-parent” babies
  •  Mitochondrial Replacement therapy (MRT) is used to replace mother’s faulty
  • Mitochondrial DNA with healthy Mitochondria from a donor woman during IVF process, thus the name- “three-parent” baby
  • The donor’s mitochondria contribute just 37 genes to the child, compared with more than 20,000 from the parents. That is a negligible amount and far less than one would gain from a blood transfusion or organ transplant.
  •  No other characteristics in terms of intelligence, eye colour, hair colour, height etc. are changed.
    About Mitochondrial Disease
  • The mitochondria are organelles inside cells that are involved in releasing energy by producing adenosine triphosphate (ATP), the key energy currency that drives metabolism.
  • Mitochondria are inherited solely from the mother and this results into cases of babies been born with rare mitochondrial diseases if mother has the faulty mitchochondrial DNA.

1.4. STEM CELLS THERAPY

Why in news?

  • Recently, miniature eye-like organs have been successfully grown using induced pluripotent stem (iPS) cells.
  • Stem Cells: Stem cells are a class of undifferentiated cells that are able to differentiate into specialized cell types. Commonly, stem cells are of the following types:
  • • Embryonic stem cells – derived from the inner cell mass of an embryo and these are capable of forming any cell types of the body.
  • • Adult stem cells – also known as somatic stem cell and it refers to non-reproductive cells in the body (eggs or sperm). They generate cells to replace
    those that are lost through normal repair, disease, or injury. ASCs are found throughout ones lifetime in tissues such as the umbilical cord, placenta, bone marrow, muscle, brain, fat tissue, skin, gut, etc.
  • • Induced pluripotent stem (iPS) cells: These cells are produced by genetically manipulating somatic cells to produce embryonic-like stem cells

Importance

  • Stem cells offer new potentials for treating diseases such as diabetes, and heart disease.
  • To screen new drugs and to develop model systems to study normal growth and identify causes of birth defects.
  • Study how an organism develops from a single cell and how healthy cells replace damaged cells in adult organisms.
  • Immunosuppressants are a class of drugs that suppress the immune response through various mechanisms. In organ transplantation, they are used to prevent the body from either recognition or attacking the foreign organ.

Draft Guidelines for Stem Cell Research

  • The Indian Council of Medical Research (ICMR) in association with the Department of Biotechnology recently released the revised Draft Guidelines for Stem Cell Research, 2017 which calls for:
  •  conducting research in an ethical and scientifically responsible manner
  •  involving various stakeholders in research of human stem cells.
  • option of sharing IPRs
  •  ensuring compliance with the national guidelines through National Apex
  • Committee for Stem Cell Research and Therapy which currently monitors and oversees research activities at the national level.

1.5. BIO-INK

Why in news

  • Recently, a new printing material called flink (functional living ink), has been developed by scientists using bacterias.

About Bio-Ink

  • Bio ink consists of a hydrogel biomaterial. It temporarily mimics the natural extracellular matrix environment of mammalian cells, giving them time to produce their own milieu.
  • Bio inks are ideal for 3D bioprinting, thus provide a 3D environment for culturing cells.
  • The bio-ink contains two different polymer components: a natural polymer extracted from seaweed, and a sacrificial synthetic polymer used in the medical industry.
  • Application: It can be used for printing complex tissues using the patient’s own stem cells for surgical bone or cartilage implants, which could be used in knee and hip surgeries.

3D printing

  • • 3D printing or additive manufacturing is a process of making three dimensional solid objects from a digital file.
  • • It is an additive process wherein an object is created by laying down successive layers of material until the object is created. Each of these layers can be seen as a thinly sliced horizontal cross-section of the eventual object.
  • • 3D printing produces complex (functional) shapes using less material than traditional manufacturing methods.

Application

  •  Manufacturing: Mass customisation, Rapid Prototyping, Rapid manufacturing, cloud-based additive manufacturing.
  •  Medical applications: Printed prosthetics, use of bioprinting in tissue engineering, high dose pills manufacturing.
  • Industrial applications: Apparel,customisable art and jewelry, in automotive
    industry as 3D printed cars, construction, fire arms etc.

1.6. BIOTECHNOLOGY IN NORTH EAST REGION

Why in news?

  • Recently Department of Biotechnology (DBT) under Ministry of Science and Technology has announced a series of new programs and missions for North Eastern Region (NER).

Recent Programs and Missions Launched by DBT

 Phyto-Pharma Plant Mission

  • The mission would work towards conservation and cultivation of endangered and threatened species

Major objectives of the mission are:

  • Captive cultivation of selected medicinal plants of NER, Development of
    packaging technology for export market, Production of safe efficacious phyto-pharmaceutical drugs following global standards.
  •  Brahmaputra Biodiversity and Biology Boat
    (B4)
  • It is an effort towards conservation of world’s largest riverine island and India’s first island district – Majuli facing excessive erosion, in collaboration with DONER.
  • Under this program, large boats will be set up in the river which will have a well-equipped laboratory along with cold storage facility to store samples. It will also have a number of satellite boats and rafts will also venture in the river to collect samples.

Human Resource Skilling Programs

  •  Twinning R&D Program – Under this program DBT has initiated establishment of link institutes in NER with the rest of the country. This has resulted in 252 research publications and 600 junior and senior fellowship being awarded to the students in biotechnology research.
  • Infrastructure and Resource binding – through establishment of biotech hubs, animal house facility for critical animal experiments, Advance Animal Disease
  • Diagnostic & Management Consortium (ADMaC) for surveillance of pathogens from NER, collaborating for conservation of delicate ecology of NER.

1.7. EMBRYO TRANSFER TECHNOLOGY

Why in news?

  • Department of Animal Husbandry launched Embryo Transfer Technology to increase the livestock productivity.

Embryo Transfer Technology (ETT)

  • It is a technique of assisted reproduction in which the embryo or zygote is collected from a donor animal with higher genetic merit and transferred to a recipient animal which serves as surrogate for rest of the pregnancy.
  • Government has undertaken a Mass Embryo Transfer programme in Indigenous Breeds under the scheme, National Mission on Bovine Productivity
  •  The programme is implemented with the objective of conservation and development of indigenous breeds under Rashtriya Gokul

Mission.

  • Indigenous Cow Breeds such as Sahiwal, Gir, Red Sindhi, Ongole, Deoni and Vechur will be the recipient surrogates under the program.
  • Benefits of ETT
  •  Farmers may get 5-6 times increased number of off springs
  •  Calves will be of high genetic merit and born disease free.

About Rashtriya Gokul Mission

  • Aim: Development and conservation of indigenous bovine breeds to enhance milk
    production and productivity through:
  •  Induction of high genetic merit bulls for semen production,
  •  Strengthening of bulls mother farms. o Setting up of Gokul Grams.
  •  Generating awareness among farmers for rearing of indigenous breeds
    About National Mission on Bovine Productivity
  •  Aim: Enhancing milk production and productivity and thereby making dairying more remunerative to the farmers.
  •  Mission components:
  •  Pashu Sanjivni- It includes identification of animals in milk using UID, issuing health cards to all animals in milk and

uploading data on INAPH data base.

  •  Advance reproductive Technique- Under the component sex sorted semen production facility is being created at 10 A graded semen stations and 50 Embryo Transfer Technology Labs with IVF
  • facilities are being created in the country. o Creation of E Pashu Haat Portal- For linking farmers and breeders of
  • indigenous breeds
    Establishment of National Bovine
  • Genomic Centre for Indigenous Breeds(NBGC-IB): For enhancing milk production and productivity through genomic selection among indigenous breeds

RESEARCH AND DEVELOPMENT

10.1. INDIA’S SPENDING ON R&D

Background

  • As per a study of the National Science and Technology Management Information System (NSTMIS), India’s gross research spending on R&D has consistently been increasing over the years.

Recently Ministry of Science & Technology announced four new schemes to promote young scientists and researchers in the country.

Teacher Associateship for Research Excellence (TARE) Scheme

  •  It aims to tap the latent potential of faculty working in state universities, colleges and private academic institutions who are well trained but have difficulty in pursuing their research due to reasons like lack of facilities, funding and guidance.
  •  The scheme facilitates mobility of such faculty members to carryout research in well-established public funded institution such as IITs, IISc, NITs, CSIR, ICAR, etc. Up to 500 TAs (Teacher Associates) will be supported under this scheme.

Overseas Visiting Doctoral Fellowship (OVDF)

  • This has been instituted for enhancing the international mobility of Indian research students with potential to create a talented pool of globally trained manpower.
  • It offers opportunities for up to 100 PhD students admitted in the Indian institutions for gaining exposure and training in overseas universities for period up to 12 months during their doctoral research.

Distinguished Investigator Award (DIA)

  • This has been initiated to recognize and reward Principal Investigators (PIs) of Science and Engineering Research Board/Department of Science and Technology projects who have performed remarkably well.
  • It is a one-time career award devised to specifically cater to the younger scientists who have not received any other prestigious awards or fellowships.

Augmenting Writing Skills for Articulating Research (AWSAR) scheme

  • This has been initiated to encourage, empower and endow popular science writing through newspapers, magazines, blogs, social media, etc. by young PhD Scholars.
  • The scheme aims to tap the tremendous potential in the country to popularize & communicate science and also to inculcate scientific temperament in the masses.

Details

  • While India spent 0.69 per cent of its GDP on R&D in 2014-15, other major countries spent much more.
  • India topped the list with regard to the government’s participation in R&D but hit the bottom in terms of participation of institutions of higher education.
  • The central government accounted for 45.1 per cent of total expenditure, followed by private sector industries (38.1 per cent), state governments (7.4 per cent), higher education sector (3.9 per cent) and the public sector industries (5.5 per cent).
  • Women’s participation in extra mural R&D projects has increased significantly from a mere 13% in 2000-01 to 29 % in 2014-15.
  • The country’s share in global research publications increased from 2.2 per cent in 2000 to 3.7 per cent in 2013 while the number of researchers per million population increased from 110 in 2000 to 218 in 2015.

Other scheme launched

NIDHI (National Initiative for Development and Harnessing Innovations),

  •  It’s an umbrella program by the Department of Science & Technology (DST) for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups.
  •  Aim: to provide technological solutions not only to the pressing needs of the society but also targets to create new avenues for wealth and job creation.

KIRAN (Knowledge Involvement in Research Advancement through Nurturing)

  • Implemeted by Department of Science & technology
  • Aim: To bring gender equality to the field of science and technology and build leadership positions for women
  • Objective: To increase the number of lady researchers in the country, and to provide research grants, especially to those who are female researchers and technologists taking a break in their career due to household or domestic compulsions.

10.2. PRIME MINISTER’S RESEARCH FELLOWSHIP SCHEME

Why in news?

  • Cabinet recently decided to implement “Prime Minister’s Fellowship Scheme”.

About the Scheme

  •  It is a public-private partnership (PPP) between Science & Engineering Research Board (SERB), which is an autonomous body under the Department of Science and Technology (DST), Government of India, and Confederation of Indian Industry (CII).
  •  It aims to improve the quality of research by attracting the best talents across the country and reduce brain drain.
  •  Under the scheme around 1000 students who have completed B.Tech or integrated M.Tech or M.sc in Science and technology streams will be offered direct admission in PhD programme in the IITs/IISc with a fixed amount of fellowship.
  • Apart from this, a research grant of Rs.2 lakhs will be provided to each of the Fellows for a period of 5 years to enable them to participate in international research conferences and present research papers.

Science & Engineering Research Board

  • It is a statutory body established through an Act of Parliament.
  • Supporting basic research in emerging areas of Science & Engineering are the primary mandate of the Board.
  • The Board is vested with both financial and administrative powers to enable quicker decisions on research issues, greatly improving thereby our responsiveness to the genuine needs of the research scientists and the S&T system.

10.3. ATL COMMUNITY DAY

Why in news?

  • Recently Atal Innovation Mission celebrated Community Drive Initiative as a part of ATL Community Day under aegis of NITI Aayog.

Atal Innovation Mission (AIM)

  • It is government’s endeavour (including Self-employment and Talent Utilization) to promote a culture of innovation and entrepreneurship.
  • Its objective is to serve as a platform of world-class Innovation Hubs, Grand Challenges, Start-up businesses and other self-employment activities, particularly in technology areas.

Two core functions of AIM:

  • Entrepreneurship promotion through Self-Employment and Talent Utilization (SETU) where innovators will be supported and mentored.
  •  Innovation promotion – to provide a platform where innovative ideas will be generated.

Atal Tinkering Lab (ATL) Community Day

  •  It is an initiative under which 25 young mentors will interact with over 200 children not enrolled in formal education system by conducting brief sessions.
  •  It is aimed at maximising the impact of Atal Tinkering Lab by extending innovation to children with a purpose to provide them with same educational tools as the students in ATL to enable them to become problem solvers and inspire the spirit of innovation.

Atal Tinkering Labs

  • They are dedicated innovation play workspaces for students between class 6-12 to learn innovation skills and develop ideas for stimulating innovations.
  • Atal Innovation Mission supports establishment of ATLs for realising the need to create scientific temper and cultivate the spirit of curiosity, entrepreneurship and innovation among young minds and achieve the vision of “Cultivate one Million children in India as Neoteric Innovators.”
  • Under ATLs children will get a chance to work with tools and equipment to understand what, how and why aspects of STEM (Science, Technology, Engineering and Math)
  • These labs are equipped with state of the art technology like 3D printers, robotics, sensory technology kits, Internet of Things etc. and are designed to spur the spark of creativity and go beyond regular curriculum and text book learning.

Other Initiatives under ATLs

  •  Unbox Tinkering – It is a training workshop for ATL In-charge to make them understand the philosophy of the Labs and technically equip them to guide the students.
  • ATL School of the Month Challenge– These were conducted to engage the ATLs.
  • Atal Tinkering Marathon – They are a 2 month long events that align with national mission and focus on clean energy, health,
  • smart mobility, smart agriculture, waste management and water resources. The top performer in the event gets to participate at multiple external events such as World Robotics Olympiad and Maker Faire.
  • Mentor India programme: It’s a strategic nation building initiative to engage leaders who can guide and mentor schools students in over 900 Atal Tinkering Labs established by Atal Innovation Mission (AIM) in schools across India.

10.4. SCHEMES FOR BRAIN GAIN

Department of Science and Technology (DST)-

  •  VAJRA (Visiting Advanced Joint Research) faculty scheme
  •  It is being implemented by Science and Engineering Research Board to enable NRI and overseas scientists community to participate and carry out R&D in the
    country.
  •  InternationalFaculty/ scientists/ technologists including Non-resident Indians (NRI) and Persons of Indian Origin (PIO) / Overseas Citizen of India (OCI) are offered adjunct / visiting faculty positions in Indian Institutions/ Universities for a period of 1-3 months under this scheme.
  •  The faculty can also undertake the role of teaching /mentoring apart from R&D.
  •  Public funded institutions and national laboratories are allowed to host the VAJRA faculty.
  •  Ramanujan Fellowship Program:
  •  for Indian scientists and engineers from all over the world, especially those who
  • wish to return to India, to take up scientific research positions at any of the scientific institutions and universities in India.
  •  All areas of science are covered under this Fellowship and the Fellowship is given for 5 years duration with financial
    support.
  •  This along with other schemes were referred by Indian delegation to the
  • Biotechnology Innovation Organization (BIO) 2017 held in San Diego
  •  Innovation in Science Pursuit for Inspired Research (INSPIRE) Faculty Scheme: offers a
    contractual research positions to Indian citizens and people of Indian origin including NRI/PIO status with PhD (in science, engineering, pharmacy, medicine, and agriculture related subjects) from any recognized university in the world.

Department of Biotechnology (DBT)

  •  Ramalingaswami Re-entry Fellowship for Indian Nationals who are working overseas in various fields of biotechnology and life sciences and are interested in taking up
  • scientific research positions in India.
  •  It allows fellows to work in any of the scientific institutions/ universities in the country and would also be eligible for regular research grant through extramural and other research schemes of various S&T agencies of the Government of India.
  • DBT also runs Welcome Trust Fellowship Program (Indian scientists, physicians researchers and bio-engineers), and Energy Biosciences Overseas Fellowship (scientists of Indian origin working outside India to pursue R&D in an Indian scientific institute /university in fields of energy related biological sciences and bio-energy).

Biotechnology Innovation Organization (BIO)

  • BIO is the world’s largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products.
  • The BIO International Convention, hosted by BIO since 1993, is the largest global event for the biotechnology industry and attracts the biggest names in biotech, offers key networking and partnering opportunities, and provides insights and inspiration on the major trends affecting the industry. The BIO International Convention helps BIO fulfill its mission to help grow the global biotech industry.

10.5. PT. DEEN DAYAL UPADHAYAY VIGYAN GRAM SANKUL PARIYOJANA

Why in news?

  • Recently, Ministry of Science and technology has launched Pt. Deen Dayal Upadhayay Vigyan Gram Sankul Pariyojana in Uttarakhand.
    About Pt. Deen Dayal Upadhayay Vigyan Gram Sankul Pariyojana.
  • Under the scheme Department of Science and Technology will adopt and develop a cluster of villages into self-sustainable in time bound manner.
  • In this the local resources and manpower will be utilised which will be further imparted value addition in local produce and services.
  • At present four clusters have been identified namely – Gaindikhata, Bazeera, Bhigun (in Garhwal) and Kausani (in Kumaon) which will be expanded further after validation of these clusters.
  • Areas of intervention would include –
  • Processing and value addition in milk, honey, mushrooms, herbal tea horticulture, forest produce etc.
  • Traditional handicraft of Uttarakhand
  • Post-harvest processing of Kiwi, strawberry, cherry, tulsi etc. through solar drying
  • Extraction of apricot through cold press technology
  • Stringent intervention in product and process control will also be maintained for energy and water conservation.

RECENT DEVELOPMENT IN S&T

12.1. XFEL GENERATES FIRST X-RAY LASER LIGHT

Why in news

  • European XFEL, the world’s biggest X-ray laser has generated its first beam of light.

About XFEL

  • The European XFEL is the largest and most powerful of the five X-ray lasers worldwide, with the ability to generate the short pulses of hard X-ray light.
  • It is 3.4-kilometre-long and most of it is located in underground tunnels in Germany and kept at a temperature of just 2 degrees above absolute zero.
  • The X-ray light has a wavelength of 0.8 nanometre – about 500 times shorter than that of visible light.
  • LASER: Light Amplification by Stimulated Emission of Radiation
  • It is device that generates an intense beam of coherent monochromatic light (or other electromagnetic radiation).
  • It means unlike the conventional light, LASER has radiation of only one wavelength
  • (Monochromatic) and they are always in same phase in space and time (Coherent).

Free-electron lasers

  • They create coherent light by constantly accelerating a beam of electrons. Free-electron lasers can produce radiation with a very short-wavelength, down to just a few tenths of a nanometre i.e. to the level of an atom.

12.2. SOHUM-HEARING SCREENING DEVICE LAUNCHED

Why in News?

  • SOHUM, an indigenously developed newborn hearing screening device has been launched by the Union Ministry of Science and Technology.

More about Sohum

  •  It has been developed by School of International Biodesign (SIB).
  •  It measures auditory brain waves via three electrodes placed on the baby’s head. When stimulated, electrodes detect electrical responses generated by the brain’s auditory system. If there is no response, it indicates child cannot hear.
  • If detected at early age, other problems such as impaired communication skills and even possible mental illness can be prevented.

School of International Biodesign

  • SIB is a flagship Program of the Department of Biotechnology (DBT) aimed to develop innovative and affordable medical devices as per India’s unmet clinical needs and to train the next generation of medical technology innovators in India.
  • It is implemented jointly at AIIMS and IIT Delhi in collaboration with International partners.
  • Under this programme, Department has authorized Biotech Consortium India Limited for management of its Intellectual Property and other techno-legal activities.

Noxeno (Developed under SIB)

  • It is the first dedicated tool for anterior nasal foreign body (NFB) removal that allows doctors in any setting to quickly and safely remove objects that people (mostly children aged 2-10) put into their noses.
  • Noxeno has been 100% invented, designed, engineered and manufactured in India.

12.3. NEW MATTER  ‘EXCITONIUM’ DISCOVERED

Why in news?

Researchers have proven the existence of the new form of matter ‘excitonium’ which exhibits microscopic quantum phenomenon like a super conductor and is formed of excitons.

Excitons

  • When an electron which is seated at the edge of the crowded electron valence band gets excited and jumps over the energy gap into an empty conduction band, its leaves behind a hole in the valence band.
  • The hole in the valence band acts as a positively charged particle and attracts the escaped electron.
  • When the escaped electron with negative charge pairs with the hole, a composite bosonic particle – exciton is formed.

12.4. WORLD’S THINNEST HOLOGRAM

Why in news?

  • Australian scientists have created the world’s thinnest hologram that can be seen without 3D goggles.

Applications of Holographic Technology

  • In medicine – Holographic imaging is used in the field of medicine to create a 3D image of a certain interior part of a patient’s body (such as the heart) and project it in real time.
  • Tradeshows – It is highly useful in
  • tradeshows as a holographic display can help launch and present a product without bearing transporting costs.
  • Holographic Telepresence – Prominent personalities have used it to address people at different places simultaneously keeping the personal connect intact through telepresence.
  • Engineering and Architecture – Displaying 3D holographic models of buildings and engineering designs gives a real time experience.

12.5. RAMAN EFFECT

Why in News?

  • Recently, National Science Day was celebrated on February 28, to commemorate the invention of the Raman Effect by the Indian physicist Sir Chandrasekhara Venkata Raman on February 28, 1928. He has been honored with Bharat Ratna and the Lenin Peace Prize.

What is Raman Effect

  •  For molecules, two types of scattering can occur
  •  Rayleigh scattering, an elastic scattering process in which a photon emerges with the same energy as it entered.
  •  Raman scattering, an inelastic scattering process in which the light scattered by a molecule emerges having an energy that is slightly different (more or less) than the incident light. This energy difference is generally dependent on the chemical structure of the molecules involved in the scattering process.
  • When light is scattered by matter, almost all of the scattering is an elastic process. Only a very small percentage of scattering is an inelastic process
  •  Raman Effect tendency is shown strongest in solid material and weakest in gaseos molecule.

Application of Raman Effect: As it helps in understanding molecular properties better it has applications in:

  • Studying catalysts, monitoring chemical purity etc. in chemical industry
  • Studying nanoparticle and developing microelectronic devices
  •  Conducting Invivo studies of the skin, identification of cancer, bone studies etc. in medical field
  •  detecting narcotics and explosives such as TNT, RDX
  •  It can be used to create a database of every substance for easy identification.

Achievements of Indians in the Field of Modern S&T Physics

  • S Chandrashekhar: He was awarded the 1983 Nobel Prize for Physics for his mathematical theory of black holes and on the basis of this Chandrashekhar Limit was defined.
  • Tessy Thomas: She is also called the missile woman of India who spearheaded the programme on the Agni IV missile.
  • Jagdish Chandra Bose: He is a noted scientist who invented microwave components like waveguides, horn antennas etc.

CHEMISTRY

  •  Praffula Chandra Ray – He was a noted chemist who set up the first chemical factory of India – Bengal Chemical and Pharmaceutical Works Ltd.in 1901
  • Har Gobind Khurana – He was an Indian American who shared the Nobel Prize of Medicine of 1968 for the research on cell’s synthesis of proteins.

MATHS

  •  S. Ramanujam: He was the second Indian to become Fellow of Royal Society of London. December 22 is celebrated as National Mathematics Day after him.

12.6. TRIBOELECTRIC NANOGENERATOR

Why in news?

  • For the first time, wireless transmission of electrical energy has been achieved using tribo electric nanogenrator

About Tribo electric nanogenerator

  • It is based on organic material to convert mechanical energy into electricity. It is a sensor that directly converts a mechanical triggering into a self-generated electric signal for detection of motion, vibration,mechanical stimuli, physical touching, and biological movement.
  • It can be applied to harvest all kinds of mechanical energy available in our daily life, like motion, walking, rotation, wind, automobile, flowing water, etc.

MISCELLANEOUS

13.1. JIGYASA INITIATIVE

  • “JIGYASA” (means curiosity) is one of the major initiatives taken up by CSIR at national level, during its Platinum Jubilee Celebration Year.
  • CSIR is widening and deepening its Scientific Social Responsibility (SSR) further with the programme.
  • It is a student- scientist connect programme which will be implemented by Council of
  • Scientific and Industrial Research (CSIR) in collaboration with Kendriya Vidyalaya Sangathan (KVS).

13.2. PROPOSALS FOR HIGH-TECH PUBLIC TRANSPORT

Why in News?

  • NITI Ayog cleared six new proposals for public transportation system of India.
  • These technologies include metrino, stadler buses, hyper loop, pod taxis, hybrid buses and freight rail road.

About new technology

  •  Metrino: It is fully automatic small pods travel independently suspended over an overhead network
  • Pod Taxis: Small automated vehicles cable cars or pod cars equipped to carry a small group of passengers.
  •  Hyperloop: Pod-like vehicle is propelled through a near-vacuum tube connecting cities at speeds matching that of an aircraft.
  • Stadler Bus: Tram like high frequency bus service for end to end connectivity.
  •  Hybrid Bus: Transport system uses hybrid propulsion systems, consisting diesel and electric ones.
  •  Freight Rail System: Under this, Elevated corridors would be built with rail lines where freight trucks can be placed. It would move on rails at high speed, reducing freight time and increasing freight quantity.

Hyperloop

  • Recently, Hyperloop Transportation Technologies (HTT) has signed an agreement with the Andhra Pradesh government to connect the city centres of Amravati and Vijayawada.
  • It’s the first agreement in India for the new transportation system.

Electric vehicle

  • Recently, Nagpur becomes first city with electric mass mobility system.
  • With this, Maharashtra also has become the first state to provide various incentives to e-taxis.

13.3. PRIVATE PARTICIPATION IN DEFENCE

Why in news?

  • Recently, the Defence Acquisition Council (DAC) has simplified ‘Make II’ procedure.

More on news

  •  Make II procedure will amend the existing ‘Make Procedure’ in Defence Procurement Procedure (DPP)-2016.
  •  This will allow Ministry of Defence to accept suo-motu proposals from the industry and also allows start-ups to develop equipment for Indian Armed Forces.
  •  The minimum qualification criteria to participate in ‘Make II’ projects have been relaxed and projects involving cost of less than three crores will be reserved for MSME.

Other Steps taken by Government in indigenous defence manufacturing

  •  Under Defence Procurement Procedure (DPP)-2016, preference to’ Buy (Indian-IDDM)’ ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories of acquisition over ‘Buy (Global)’ category. IDDM stands for Indigenously Designed Developed and Manufactured with a minimum of 40% local content.
  •  The Defence Acquisition Council (DAC) approved the broad contours of the Strategic Partnership Model (SPM). The policy is intended to engage the Indian private sector in the manufacture of hi-tech defence equipment in India.
  •  Foreign Investment upto 49% is allowed through automatic route and above 49% under Government route on case-to-case basis. Moreover, Government is thinking of 100 percent FDI in defence through automatic route.

13.4. INDIA’S FIRST PRIVATE MISSILE PRODUCTION FACILITY UNVEILED

Why in news?

  • Recently, India’s first private missile production facility was unveiled near Hyderabad.

India’s first private sector small arms manufacturing plant

  •  It is a Joint Venture (JV) between Punj Lloyd and Israel Weapon Industries (IWI) at Malanpur in Madhya Pradesh.
  •  It’s the first JV under the Make in India initiative.

Details

  • The missile sub-section manufacturing
  • facility has been established as a joint venture (51:49) between Kalyani Group and Israel’s Rafael Advanced Defence System Ltd.
  •  The Kalyani Rafael Advanced System Facility will initially manufacture Anti-Tank Guided Missile (ATGM) Spike.
  •  The facility has been established in line with ‘Make in India’ initiative and Defence Procurement Policy, 2016 to ‘Make (Indian)’ and ‘Buy and Make (Indian)’.

13.5. LIQUID NITROGEN IN FOOD AND DRINKS

Why in news?

  •  The Haryana government recently banned the use of liquid nitrogen in drinks and food, reacting to a cocktail accident at a Gurgaon pub that burnt a hole in a man’s stomach.
  •  The Haryana food and drugs administration department issued an order that any eatery found using liquid nitrogen with any drink or food will be booked under Food Safety and Standards Act, 2006.

About Liquid Nitrogen

  •  Liquid nitrogen (nitrogen in a liquid state at an extremely low temperature) is colourless and has a boiling point of -195.79 °C. It is used in bars to quickly chill glasses, freeze ingredients, provide a smoky effect to drinks.
  •  Due to its low temperature, liquid nitrogen can be extremely damaging to body tissue, causing frostbite and cryogenic burning on contact. Moreover, if ingested, it could lead
    to severe internal damage, destroying tissue in the mouth and intestinal tract.
  •  Liquid nitrogen also has an expansion ratio of 1:694 at 20 degree Celsius, meaning one litre of liquid nitrogen at 20 degree Celsius can expand to 694 litres of nitrogen gas. If it is swallowed and gets into a person’s stomach, it could explode
  •  According to experts, food and drinks that are prepared with liquid nitrogen should be consumed only after all the smokes have evaporated.

13.6. NOVEL MOLECULE TO TREAT CANCER – DISARIB

  •  Disarib is a novel small molecule, designed and synthesised by Indian researchers which has shown promise in targeted killing of cancer cells.
  •  The molecule (Disarib) works by binding itself to a protein called BCL2, which suppresses the death of cancerous cells while sparing normal cells.
  •  However, the Disarib molecule would be ineffective in cases where expression of BCL2 is low in cancer cell lines such as breast cancer, cervical cancer etc.

13.7. BACTERIA NAMED AFTER A P J ABDUL KALAM

Why in news?

  •  Scientists at NASA have named a new organism – a bacteria as Solibacillus kalamii in honour of Dr. A P J Abdul Kalam.
  •  This form of bacteria has only been found on the International Space Station and not on earth as of yet.

13.8. KALAMSAT

  •  NASA launched the world’s smallest satellite (weigh= 64 grams), built by 18-year old Tamil Nadu student Rifath Sharook and his team.
  •  Named as Kalamsat, after former President
  • APJ Abdul Kalam, it’s a 3-D printed satellite and equipped with nano Geiger Muller counter for measuring the radiation in space
  •  Objective: To demonstrate the performance of 3D-printed carbon fibre as it’s for the first time that 3-D printing technology is being used in space.

13.9. CHESS

  •  NASA launched a sounding rocket CHESS (Colorado High-resolution Echelle Stellar Spectrograph) to study vast interstellar clouds and know about the earliest stages of star formation.
  •  It studied Beta Scorpii — a hot, brightly shining star in the Scorpius constellation to probe the material between the star and our own solar system.

13.10. HWASONG-15

  •  It is a two-staged, liquid-fuelled intercontinental ballistic missile (ICBM), developed by North Korea.

13.11. ATAGS

  •  Recently, Advanced Towed Artillery Gun System (ATAGS), has set a new world record in range by hitting targets at a distance of 48 km.
  •  It is being jointly developed by the Defence
  • Research and Development Organisation (DRDO) and the private sector.
  •  ATAGS is a 155mm, 52 calibre towed artillery gun being developed in mission mode by DRDO as a part of the Army’s artillery modernisation programme.

13.12. KUNLONG

  •  It’s the world’s largest amphibious aircraft capable of carrying 50 people and can stay airborne for 12 hours.
  •  It’s also known as AG600 and makes China among the world’s few countries capable of developing a large amphibious aircraft.
  •  Application: Millitary, firefighting and marine rescue.

13.13. STRATOLAUNCH PLANE

  •  It’s an airplane with the world’s largest wingspan, has successfully completed its initial engine tests.
  •  It’s designed to serve as a launching platform for sending rockets into low-Earth orbit.

13.14. SMART ROBO COP

  •  A life-sized robot, claimed to be the world’s first smart policing robot was launched in Hyderabad by H-BOTS, a Hyderabad-based start-up
  •  ‘Robocop’ can assist police in handling law and order, and traffic management.
  •  It can move, recognizes people, takes complaints, detects bombs, identified suspects, interacted with people, and answers peoples queries.

13.15. GOOGLE LUNAR XPRIZE

  • Recently, $30-million Google Lunar XPRIZE (GLXP) organizer has called off its 10-year-old challenge, as no team competing will make a launch attempt to reach the moon by March 31.
  • Competing Team: SPACEIL from Israel, Moon Express from USA, Synergy Moon, an international team, Hakuto from Japan and Team Indus from India.
  • Team Indus is India’s first privately funded start-up and if its moon mission is successful, then it would have become the first private Indian startup to land a craft on the moon. It had planned to send a lander-rover to the moon on an ISRO launcher.

13.16. CHANG’E 4

  • It is China’s lunar probe on the dark side of the moon.
  • It incorporates a orbiter, lander and rover.

13.17. GAIA MISSION

  • It is a mission of European Space Agency which aims to chart a three-dimensional map of about 1 billion stars throughout our Galaxy, the Milky Way and beyond.

13.18. TABBY’S STAR

  • It is also known as Boyajian’s star.
  • It is a part of the Cygnus constellation which shows anomalously large fluctuations of light intensity i.e its light intensity drops by more than 20% at times, with regular smaller fluctuations which are also in excess of that seen in many other stars.

13.19. KIMBERLY PROCESS CERTIFICATION SCHEME

Why in news?

  • Recently, Kimberly Process Certification Scheme Plenary was held at Brisbane which resolved to create an Ad hoc Committee on Review and Reform with India as the chair.

About Kimberly Process Certification Scheme (KPCS)

  • It is a joint Government, International Diamond Industry and Civil Society initiative to stem the flow of Conflict Diamonds (rough diamonds used to finance the conflicts and topple the established government).
  • It was started in 2003 after the United Nations General Assembly adopted a landmark resolution in 2000 supporting the
    creation of an international certification scheme for rough diamond. It also finds mention in the United Nations Security Council resolutions.
  • India is one of the founding member of KPCS. At present, KPCS has 54 members representing 81 countries including the EU with 28 members.
  • KPCS enables the participating countries to certify the shipment in rough diamonds as ‘conflict-free’ and prevent entrance of conflict diamonds in legitimate trade.
  • According to the KPCS terms, member states have to meet the ‘minimum requirements’ and also put in place national legislations and institutions, export, import and internal controls, commit to transparency and exchange of statistical data.

DEFENCE TECHNOLOGY

4.1. INTEGRATED GUIDED MISSILE DEVELOPMENT PLAN (IGDMP)

Why in news?

  • Recently several missiles, such as Agni II, Dhanush, Prithvi-II and Nag, being developed under IGDMP were successfully test fired at various locations.

Integrated Guided Missile Development Plan

  • It was envisioned in 1983 by former President Dr. A P J Abdul Kalam to help India attain self-sufficiency in the field of missile technology.
  • Five missile systems have been developed under this programme namely Agni, Akash, Trishul, Prithvi and Nag.
  • In 2008 DRDO announced the successful completion of the program

4.1.1. AGNI

  • It is an intercontinental surface-to-surface, nuclear capable ballistic missile developed by DRDO.
  •  At present, US, China, Russia, UK, France and Israel are known to have ICBMs.
  •  It has been equipped with very high accuracy
  • Ring Laser Gyro based Inertial Navigation System (RINS) and Micro Navigation System (MINS).
  •  India has reportedly also been working on multiple independently targetable reentry vehicles (MIRV) for the Agni-V in order to ensure a credible second strike capability or credible minimum deterrence. MIRV means one missile can carry several warheads, each for different targets.

<center>

Missile 
Agni-I
  • •Single-stage engine powered by solid
    fuel

  • Short-range ballistic missile.

  • Coverage: 700 km

Agni-II
    •
  • Two stage solid propellant engine.

  • Medium-range ballistic missile

  • Coverage: 2000 km
Agni-III•
  • Two-stage solid propellant engine

  • Intermediate range ballistic missile

  • Coverage: 3000 km
Agni-IV
  • •Two-stage solid propellant engine

  • Intermediate range ballistic missile

  • Coverage: 4000 km

Agni-V
  • •Powered by 3 stage solid, all composite
</center>

rocket motors

  •  It’s an Intercontinental Ballistic Misille
  • Coverage: 5000 km
  • Maximim speed: 24 times speed of sound
  • Canister-lauch for quick-response, higher reliability, longer shelf-life, less maintenance and enhanced road mobility

4.1.2. PRITHVI

  • Both Prithvi-I and Prithvi-II is surface-to-surface ballistic missile
  • Prithvi-II is indigenously developed and nuclear-capable surface-to-surface missile. It is a short-range ballistic missile (SRBM) developed by DRDO.
  • It is capable of carrying 500-1,000 kilogram of warheads.
  • It uses advanced inertial guidance system with manoeuvring trajectory to hit its target.
  • Dhanush (also known as Prithvi III), a naval variant of this Prithvi missile, has also been tested recently.

<center>

Prithvi-IPrithvi-II
Short-range,road-mobile,liquid propellan,ballistic missile.
Short-range,road-mobile,liquid-propellant ballistic missile.
It uses a single-stage,liquid propellant twin engine.

It uses a single-stage, liquid propellant twin engine.
It has a minimum range of 40 km and a maximum of 150 km.
It has a maximum range of 350 km.
</center>

4.1.3. NAG

  •  It is a third generation “fire and forget” ATGM (anti-tank guided missile)developed by the DRDO.
  • The missile is equipped with highly advanced Imaging Infrared Radar (IRR) seeker and has integrated avionics technology in its arsenal.
  • Nag can be launched from land and air-based platforms. The land version is currently available for integration on the Nag missile carrier (NAMICA), which is derived from a BMP-2 tracked infantry combat vehicle.
  • The helicopter-launched configuration, designated as helicopter-launched NAG (HELINA), can be fired from Dhruv advanced
    light helicopter (ALH) and HAL Rudra attack helicopter.
  • The land based version has maximum range of 4 km while air based version has a maximum range of 7 km.

4.1.4. AKASH MISSILE

  • Developed by the Defence Research and Development Organisation (DRDO), its a supersonic surface-to-air missile.
  • Akash has a strike range of about 25 km and can carry a 55- kg fragmentation warhead
  • It’s designed to neutralise multiple aerial targets attacking from several directions simultaneously.
  • The system is autonomous and its operation is fully automated.

Defence Research & Development Organisation (DRDO)

  • It works under Department of Defence Research and Development of Ministry of Defence.
  • DRDO was formed in 1958 through the amalgamation Technical Development Establishment (TDEs) of the Indian Army and the Directorate of Technical Development & Production (DTDP) with the Defence Science Organisation (DSO)
  •  Mission: DRDO dedicatedly working towards enhancing self-reliance in Defence Systems and undertakes design & development leading to production of world class weapon systems and equipment in accordance with the expressed needs and the qualitative requirements laid down by the three services.

4.1.5. TRISHUL MISSILE

  • Developed by DRDO, It’s a Quick Reaction Surface to Air Missile.
  • It can be used as an anti-sea skimmer from a ship against low flying attacking missiles.
  • It employs dual thrust propulsion stage using high-energy solid propellant.
  • Trishul, with its quickest reaction time, high frequency operation, high manoeuverability, high lethal capability and multi-roles for three services, is state-of-the-art system providing considerable advantage to the Armed forces.

4.2. OTHER MISSILE TESTS

4.2.1. BRAHMOS TESTED FROM ANDAMAN ISLANDS

Why in news?

  • The land-to-land configuration of BRAHMOS Block III, missile was launched from a Mobile Autonomous Launcher (MAL) for its full-range testing in the Andaman and Nicobar Islands.

About the Missile

  • It is a joint venture between India and Russia and is named after the Brahmaputra and Moscowa rivers.
  • The first stage of the system takes the missile to supersonic speed and the second stage with liquid ramjet accelerates it to 2.8 mach.
  • Brahmos ALCM (Air Launched Cruise Missile), is the heaviest weapon to be deployed on India’s Su-30.

Significance

  • With this test launch, India becomes the first country to have the capability to have a multi-platform weapon.
  • It can be used for multi-mission roles, including precision strikes on terror camps across the border as well as against high value naval targets in the Indian Ocean.
  • After India became a member of the Missile Technology Control Regime (MTCR) in 2016, India and Russia are now planning to jointly
    develop a new generation of Brahmos missiles with 600 km-plus range. Earlier range was restricted to sub-300 kms.
  • Ramjet: A ramjet engine does not have any turbines unlike the turbojet engines. It achieves compression of intake air just by the forward speed of the air vehicle.
  • Scramjet engine The first experiment towards the realisation of an Air Breathing Propulsion System in Scramjet Engine was conducted in 2016. It uses Hydrogen as fuel and the Oxygen from the atmospheric air as the oxidiser.
  • Fire and Forget: It means the missile guidance does not require further guidance after the launch and still hit the target without the launcher being in line-of-sight of the target.

4.2.2. NIRBHAY SUBSONIC CRUISE MISSILE

Why in news?

Recently, DRDO successfully test fired NIRBHAY missile.

About the Missile

  • NIRBHAY is India’s first indigenous Long Range Sub-Sonic Cruise Missile, developed and designed by Defence Research and Development Organisation (DRDO).
  • It can carry a warhead of 200 kg to 300 kg at a speed of 0.6 to 0.7 Mach with a launch weight of about 1500 kg.
  • It can avoid detection as it has ability to cruise at heights as low as 100 m.
  • It is powered by solid rocket motor booster and has a range of 1000km.
  • The successful development would provide a definite boost to armed forces, indigenous defence industry and India’s capability to design and develop lethal weapons of strategic importance.
  •  With the successful launch of NIRBHAY, India joins the select league of nations that possess the ability to make sub-sonic cruise missile.

4.2.3. ASTRA MISSILE

  • The final Development Flight Trials of Astra -Beyond Visual Range Air to Air Missile (BVRAAM) were successfully conducted over the Bay of Bengal, off the Coast of Chandipur, Odisha recently.
  • The missile has been developed by the Defence Research and Development
    Organization (DRDO) together with Indian Air Force (IAF).
  • It is an all-weather weapon’s system capable of destroying an enemy target 60 to 70 km far away. In a typical Astra engagement both the launcher and the target move at a speed in excess of 1000 kmph.
  • Built indigenously, development of ASTRA missiles will provide major business opportunities for Indian players.

Types of missile

  • Cruise Missile: A cruise missile is an unmanned self-propelled guided vehicle that sustains flight through aerodynamic lift for most of its flight path. They fly within the Earth’s atmosphere and use jet engine technology. Classification on the basis of speed
  •  Subsonic cruise missile flies at a speed lesser than that of sound. It travels at a speed of around 0.8 Mach.
  •  Supersonic cruise missile travels at a speed of around 2-3 Mach. The combination of supersonic speed and warhead mass provides high kinetic energy ensuring tremendous lethal effect.
  • Hypersonic cruise missile travels at a speed of more than 5 Mach. Many countries are working to develop hypersonic cruise missiles.
  • Ballistic Missile: A ballistic missile is a missile that has a ballistic trajectory over most of its flight path, regardless of whether or not it is a weapon-delivery vehicle.

4.3. AIR DEFENCE SYSTEMS

4.3.1. ADVANCED MRSAM

Why in news?

  • The Indian Army has signed a MoU with the
    Defence Research and Development Organisation (DRDO) to raise one regiment of the advanced Medium Range Surface to Air Missiles (MRSAM),

Recently tested Missiles:

  • Maitri: This is also a QRSAM being developed by DRDO with the help of France.
  • SPYDER (Surface to Air Python and Derby) missile system is a Low level QRSAM (15km range) developed by Israel’s Rafael Advanced defence system and is to be deployed on Pakistan border.

About MRSAM

  • It is an advanced, all weather, mobile, land-based air defence system.
  • It is capable of engaging multiple aerial targets at ranges of more than 50 km.
  • The system will be jointly developed by Israel and DRDO with the involvement of private sectors and DPSUs. The system will have majority indigenous content, giving boost to the Make-in-India initiative.
  • The MRSAM is a land-based variant of the long-range surface-to-air missile (LRSAM) or Barak-8 naval air defence system, which is designed to operate from naval vessels and has range upto 100 km.
  • Barak-8 was also jointly developed with Israel

4.3.2. ENDO-ATMOSPHERIC INTERCEPTOR MISSILE

Why in news

  • Recently, India successfully test-fired it’s indigenously developed Advanced Air Defence (AAD) supersonic interceptor missile.
  • Advanced Area Defence (AAD) Interceptor Missile
  • It is an indigenously developed single stage missile powered by solid propellant.
  • The interceptor missile has a navigation system, mobile launcher, secure data link for interception, independent tracking and sophisticated radars.
  • The missile is capable of destroying incoming ballistic missile at low altitude within 30 km of the earth’s atmosphere.

Ballistic Missile Defence System

  • It is being developed by DRDO in order to develop multi-layered ballistic missile defence system to protect the country against rouge attacks.
  • India has developed a functional ‘iron dome’ Ballistic missile which comprise of Endo and Exo Atmospheric Missiles.
  • It consists of two interceptor missiles namely:
  • Prithvi Defence vehicle (PDV) missile for exo-atmospheric ranges – capable of destroying targets at a high altitude of more than 120 km
  • Advanced Area Defence (Ashwin) missile for endo-atmosphere – capable of intercepting incoming targets at an altitude of 15 to 25 kms
  • India is the fifth nation in the world to have a robust Ballistic Missile Defence system. Other countries are US, Russia, Israel and China.

 

4.3.3. QUICK REACTION SURFACE- TO-AIR MISSILE (QRSAM)

Why in news?

  • The DRDO has successfully test fired indigenously developed QRSAM recently.

Details

  • It is a canister-based high-speed and short-range weapon system
  • It is a highly mobile air defence system which can destroy multiple targets at a distance of 25 km in less than one minute.
  • It can also deceive enemy radars making it difficult to be detected
  • Considered to be a unique system in its class, the missile is expected to supplement medium range surface-to-air missile Akash.
  • It is an all-weather and all-terrain missile having electronic counter measures against all known aircraft jammers.
  • The missile uses high-energy solid propellant.

4.4. SURVEILLANCE TECHNOLOGIES

4.4.1. NETRA

Why in news?

  • Recently, for the first time mid air-to-air refuelling of the Embraer transport aircraft was carried which is mounted with NETRA.

Significance

  • Air-to-air refuelling allows the aircraft to stay
  • airborne much beyond their limits, allowing better exploitation of capabilities and boosting the force’s capabilities.

About NETRA

  • It is a first indigenously developed airborne early warning and control system (AEW&C), mounted on a Brazilian Embraer-145, developed by Defense Research and Development Organization (DRDO).
  • AEW&C is also called eye-in-the-sky which is capable of long-range surveillance and a force multiplier.
  • India is only 4th such nation after United States, Russia and Israel that have such technology on their own.
  • Currently Indian Air Force using 3 Israeli
  • Phalcon AWACS (Airborne Warning and Control System) which are mounted on Russian IL-76 heavy-lift planes. These Phalcon AWACS has a range of 400 kms and 360-degre coverage.

Important features of NETRA are:

  • Range of 200 kms (Capability to detect aerial threats from incoming aircraft and missiles).
  • 240 degrees coverage (simultaneously scan the area on both sides of aircraft)
  • State of the art active electronically scanned radar and Secondary surveillance radar.
  • Electronic and communication counter measures.
  • Line of sight and beyond line of sight data link.
  • Voice communication system and self-protection suit.

4.4.2. RUSTOM-2 DRONE

Why in news?

Recently DRDO successfully carried out test flight of Rustom-2 drone.

More about Rustom-2

  • Rustom-2 is medium-altitude long-endurance drone (MALE) designed and developed by Aeronautical Development Establishment (ADE) of the DRDO, Hindustan Aeronautics Ltd and Bharat Electronics.
  • It can fly up to an altitude of 22,000 feet and has endurance of over 20 hours.
  • It can carry variety of payloads like Electronic Intelligence (ELINT), Synthetic Aperture Radar (SAR), Communication Intelligence (COMINT) and Situational Awareness Payloads (SAP) for performing missions even during the night.
  • It will be used by all three services of Indian armed forces, primarily for intelligence, surveillance and reconnaissance (ISR) operations.
  • Rustom 2 can fly missions on manual as well as autonomous modes.

More about Drones

  • Recently, Director General of Civil Aviation (DGCA) released the Civil Aviation Requirements (CAR) for the operation of civil Remotely Piloted Aircraft System (RPAS) or Drones in India.

 

  • UAVs: It operates without a human pilot. UAVs are commonly used in both the military and police forces in situations where the risk of sending a human piloted aircraft is unacceptable, or the situation makes using a manned aircraft impractical.

Background

  • DGCA in October 2014 restricted the use of drones and unmanned aircraft system by civilians.
  • Current aircraft rules also do not cover use of drones for civilian purposes as well as their sale and purchase.
  • Unregulated usage poses Security Threat and chances for air collisions and accidents.

Directorate General of Civil Aviation

  • DGCA is the civil aviation regulatory body responsible for regulating of air transport services to/from and within India.

Key Functions

  • Registration of civil aircraft and licensing of pilots and aircraft maintenance engineers.
  • Coordination with ICAO (International Civil Aviation Organization).
  • Safety oversight and surveillance.
  • Advising government in matters of air transport including those related to bilateral air services agreements.

Various Unmanned Aerial Vehicles in India

  • Nishant: It was designed for battlefield surveillance and reconnaissance and has been designed and developed by ADE.
  • Panchi: It wheeled version of UAV Nishant and has been designed and developed by ADE.
  • Lakshya: It is a reusable aerial target system.
  • Daksh: It is a land based drone used for bomb disposal developed by DRDO.

Provision under Regulation

  • Definition: A remotely piloted aircraft (RPA) is defined as an unmanned aircraft which is piloted from a remote station.
  • The DCGA has divided the drones into five categories based on their Maximum Take-Off Weight (MTOW)
  • Nano: Less than or equal to 250 grams.
  • Micro: Greater than 250 grams and less than or equal to 2 kg.
  • Mini: Greater than 2 kg and less than or equal to 25 kg.
  • Small: Greater than 25 kg and less than or equal to 150 kg.
  • Large: Greater than 150 kg.
  • A Unique Identification Number and radio frequency tags would be a mandatory requirement for operating drones.
  • Exemption: Drones in nano category-weighing up to 250 grams- and those operated by government agencies would not require any permit.
    Pilot: The remote pilot for any drone must be at least 18 years old and has to go through a prescribed training process.
  • No Drone Zones:
  • Drones are barred from being operated within 5km of an airport, within 50km from international border and beyond 500 metre (horizontal) into sea along the coastline.
  •  Drones would not be allowed within 5 km radius from Vijay Chowk (in national capital), over eco-sensitive zones like national parks and wildlife sanctuaries and from a mobile platform such as a moving vehicle, ship or aircraft.
  •  Due permissions would also be needed when drones are being used over densely populated areas or near an area affecting public safety or where emergency operations are underway.
  • Penalties: Any violation of rules shall attract penal actions including penalties under the Indian Penal Code

Advantage of UAVs

  • Damage assessment of property after natural calamities, use by Armed Forces for tactical purposes at border, Surveillance and Crowd Management, Monitoring of wildlife, SENSAGRI (SENsor based Smart AGRIculture), many e-mmorce use it for delivering products.

4. 4.3. MUNTRA, INDIA’S FIRST UNMANNED TANK

Why in news?

  • Muntra, the first unmanned, remotely operated tank of India has been made by DRDO (the Defence Research and Development Organisation) for surveillance missions, mine detection and reconnaissance in areas with nuclear and biological threat. It can be used in Naxal-hit areas as well.
  • Features: The tank has radar, an integrated camera along with laser range finder which can spy on a ground target 15km away. The tank is tested at Mahajan field firing range in Rajasthan under dusty desert condition.
  • Other details: Indian defence Ministry has relaunched an ambitious Future Combat Ready Vehicles (FCRV) program to find a cutting edge tank for the mid-2020s and beyond.

Types of Muntra tanks:

  • Muntra S: For surveillance mission
  • Muntra M: For detecting mines
  • Muntra N: For operation in areas where there is nuclear or bio-weapon risks.
  • Tanks used by India: T-72M, T-90S, Arjun Mark 1, Arjun Mark-2 etc.

4.5. TECHNOLOGICAL DEVELOPMENTS IN NAVY

4.5.1. SCORPENE CLASS SUBMARINE

Why in news?

  • Indian Navy recently launched Scorpene-class (conventional diesel electric attack submarines) submarine INS Karanj.

More about INS Karanj

  • INS Karanj is the third of the six Scorpene-class submarines under the Project 75 programme of Indian navy
  • The first one, INS Kalvari (named after the tiger shark) was commissioned on December 2017.The second one, INS Khandari is undergoing sea trials. Remaining three submarines Vela, Vagir and Vagsheer are in various stages of outfitting.
  • The Scorpene submarines can undertake various missions such as anti-surface warfare,anti-submarine warfare, intelligence gathering, mine laying and area surveillance.

4.5.2. ARIHANT CLASS SUBMARINE

Why in news?

  • Aridhaman the second Arihant-class nuclear-powered ballistic missile submarine was slated to be launched and inducted into services.

INS Arihant

  • It is India’s first indigenously built nuclear powered submarine which was built under the Advanced Technology Vessel project
  • It is based on the design of the Russian Project 971 Akula I-class nuclear powered attack submarine.

More about INS Aridhaman

  •  It is nuclear-power ballistic missile submarine indigenously built under the Advanced Technology Vessel (ATV) project at Visakhapatnam.
  • It is powered by a pressurized water reactor After the induction of INS Arihant and INS
  • Aridhaman India has become 6th country in the world to have nuclear powered submarine after UNSC permanent members – USA, UK, China, Russia and France.

4.5.3. PROJECT 28

Why in news?

  • Recently INS Kiltan, Anti-Submarine Warfare (ASW) stealth corvette was commissioned into the Indian Navy.

Details

  • INS Kiltan is third of the four kamorta class anti-submarine warfare corvettes being built under naval modernisation project P-28.
  • INS Kamorta and INS Kadmatt which were two ships constructed earlier under the same project. The fourth ship INS kavaratti is still under construction.
  • It is India’s first major warship to have a superstructure of carbon fibre composite material resulting in improved stealth features, lower top weight and maintenance costs.
  • It was designed by Directorate of Naval Design and constructed by Garden Reach Shipbuilders & Engineers Limited, Kolkata.

4.5.4. FIRST INDIGENOUSLY BUILT FLOATING DOCK

Why in news?

  • The Indian Navy’s first indigenously built Floating Dock (FDN-2) was launched at shipyard in Kattupalli, Near Ennore port, Chennai.

About the dock

  • The floating dock is 185 metres long and 40 metres wide. It will enable docking of all kinds of vessels.
  • This will include naval ships and submarines of up to 8,000 tonnes displacement.
  • It would include draughts of up to seven metres, during both day and night.
  • FDN-2 will be based in the Andaman and Nicobar Islands.

4. 5.5. NAVAL OFFSHORE PATROL VEHICLE (NOPV)

  • Two diesel engine driven NOPVs named Shachi and Shruti were launched at Pipavav, Gujarat.
  • These ships are part of 5 ship project being built by Reliance Defence and Engineering Limited.
  • The NOPVs would increase the ocean surveillance and patrolling capabilities of the Indian Navy.

4.6. DEFENCE RELATED NEWS

4.6.1. COMPREHENSIVE INTEGRATED BORDER MANAGEMENT SYSTEM (CIBMS)

Why in News?

  • Recently Border Security Force (BSF) personnel detected a fifth (since 2012) cross-border tunnel in the forest area of Jammu which has intensified the demand for CIBMS.

Background

  • The trigger for implementing the CIBMS was the Pathankot terrorist attack followed by warning by the Punjab and Haryana High Court. Following this the MHA sanctioned the implementation of CIBMS through two pilot projects (stretches in Jammu sector of India-Pakistan Border).
  • Further a committee under Madhukar Gupta (2016), was explicitly tasked to recommend technological solutions to secure the
    international border.

What is CIBMS?

  • It is a robust and integrated system that is capable of addressing the gaps in the present system of border security by seamlessly integrating human resources, weapons, and high-tech surveillance equipment.
  • It has three main components:
  • New high-tech surveillance devices such as sensors, detectors, cameras, etc. as well as existing equipment for round-the-clock surveillance of the international border.
  • An efficient and dedicated communication network including fiber optic cables and satellite communication for transmitting data gathered; and
  • A command and control centre to which the data will be transmitted providing a composite picture of the international border.
  • This would improve prevention of infiltration and smuggling attempts, cover gaps at rivers and nullahs, providing all-round security in even adverse climatic conditions & give relief to BSF troops.

4.6.2. ‘SAMADHAN’ DOCTRINE FOR NAXAL VIOLENCE

Why in news?

  • Recently, 25 jawans lost their lives in the Sukma attack, the deadliest Naxal strike on the CRPF in years. In answer to Naxal problem, Ministry of Home Affairs launched Operation ‘SAMADHAN’
  • Operation Samadhan involves Smart leadership, Aggressive strategy, Motivation and Training, Actionable intelligence, Dashbord based key performance indicators, Harnessing technology and No access to funds to LWE groups.

4.6.3. AADDHAR SECURITY

Why in News?

  • Recently, Unique Identification Authority of India (UIDAI), announced introduction of a two-tier security system in the wake of alleged data breaches of Aadhaar.

Unique Identification Authority of India (UIDAI)

  • It is a statutory authority established under the provisions of the Aadhaar Act, 2016.
  • It works under the aegis of Ministry of Electronics and Information technology.
  • It is responsible for Aadhaar enrolment, authentication, developing the policy, procedure and system for issuing Aadhaar numbers etc.
  • It consists of a Chairperson appointed on part-time basis, two part-time Members and a Chief Executive Officer who shall be the Member-Secretary of the Authority.

Proposed two tier security system

  • Virtual IDs
  •  It is a 16-digit temporary number (like an OTP) which can only generated by Aadhaar holders in place of Aadhaar numbers to validate their identity.
  •  It can be generated through UIDAI’s portal, enrolment centres, Aadhaar’s mobile app, etc.
  • There will be only one active and valid VID for an Aadhaar number at any given time.
  • Limited KYC: It involves giving an agency-specific UID ‘token’ for e-KYC authentication. It eliminates the need of many agencies storing Aadhaar numbers while still enabling their own paperless KYC.
  •  For better safety of Aadhar Data, all Authentication User Agencies (AUAs) will be divided into two categories:
    o Global AUAs – Agencies whose services,
  • by law, require them to store the Aadhaar number will be qualified as Global AUAs and will enjoy access to full demographic details of an individual along with the ability to store Aadhaar numbers within their system.
  • Local AUAs – They will neither get access to full KYC, nor can they store the Aadhaar number on their systems. Instead, they will get a tokenised number issued by UIDAI to identify their customers. UID token will be a unique 72-character alphanumeric string for each Aadhaar number for each particular AUA entity.

What are AUAs?

  • It is an entity that provides Aadhaar Enabled Services to Aadhaar number holders, uses the authentication as facilitated by the Authentication Service Agency (ASA).
  • An AUA may be a government, public, or private legal agency registered in India that uses UIDAI’s
  • Aadhaar authentication services and sends authentication requests to enable its services or business functions.
  • ASAs are entities that have secure leased line connectivity with the CIDR and transmit authentication requests to CIDR on behalf of one or more AUAs
  • Security features in physical Aadhaar card – There is no hologram or digital signature but rather a QR code, which is just an image representation of a text. Thus, in its physical form, its coloured photocopy may look as good as the original

4.6.4. NTRO UNDER INTELLIGENCE ACT

Why in News?

• Recently, the Home Ministry issued a notification listing National Technical Research Organization (NTRO) under the Intelligence Organizations (Restriction of Rights) Act, 1985.

Intelligence Organizations (Restriction of Rights) Act 1985

  • The aim of this act is to prevent leakage of information by intelligence agencies.
  • It prevents employees of a notified agency – o From forming unions/associations.
  •  Puts restrictions on the employee’s freedom
    of speech
  •  Bars any communication with the press or publishing a book or other document without the permission of the head of the intelligence organization.

About NTRO

  • The NTRO was created after the 1999 Kargil conflict as a dedicated technical intelligence agency. It was finally constituted in 2004.
  • NTRO reports to the Prime Minister’s Office
  • (PMO) and the National Security Advisor (NSA).
  • It functions under the National Security Adviser.
  •  It also includes National Institute of Cryptology Research and Development.

Various Intelligence Agencies in India

1. Research and Analysis Wing (RAW) –

  •  It was founded in 1968 to counter Chinese influence but over time its focus has shifted to Pakistan.
  • It is India’s premier external intelligence agency.
  • It reports directly to the Prime Minister and not to the Department of Defence.
  •  It’s primary objectives include
  • Monitoring the political and military developments in adjoining countries, which have direct bearing on India’s national security and in the formulation of its foreign policy.
  •  Seeking the control and limitation of the supply of military hardware to Pakistan, mostly from European countries, the United States, and China.

2. Intelligence Bureau

  • It was founded by the Britishers as an intelligence agency for both external and domestic intelligence gathering. After the 1962 war with China, the external intelligence function was taken away from it.
  • It also executes counter intelligence and counter terrorism tasks.

3. Directorate of Revenue Intelligence

  •  It is the apex anti-smuggling agency of India, working under the Central Board of Excise Customs, Ministry of Finance.
  •  It is tasked with detecting and curbing smuggling of contraband, including drug trafficking and illicit international trade in wildlife and environmentally sensitive items.
  •  It also combats commercial frauds related to international trade and Custom duty evasion.

4. Narcotics Control Bureau

  • It was formed in 1986 as per a provision of The Narcotic Drugs and Psychotropic Substances Act, 1985. It is an intelligence agency and coordinates actions of concerned authorities over trade of illicit narcotics from the country.

4.6.5. MERGER OF NCRB WITH BPRD

  • Government has recently notified the merger of National Crime Records Bureau (NCRB) with Bureau of Police Research and Development (BPRD).
  • NCRB is an attached office to the Ministry of Home Affairs which was established in 1986 to empower Indian Police with the power of information Technology solutions and criminal intelligence to enforce the law effectively.
  • BPRD was established in 1970 as a national police organisation to study, research and develop on subjects and issues related to policing.
  • Reason for merger
  •  boost crime data collection and research efforts
  •  improve administrative efficiency
  • optimum utilisation of resources
  •  Better outcome to crime data collected by NCRB and research work done by BPRD.

4. 6.6. CREATION OF SPACE, CYBER AND SPECIAL OPERATIONS COMMANDS

Why in news?

  •  Recently, three new formations under Defence Ministry namely Defence Cyber Agency, Defence Space Agency and a Special Operations Division have been proposed.
  • Joint military Doctrine of the Indian armed forces, 2017 and Naresh Chandra Task Force 2012 had also underscored the need to prepare the defence forces for the “emerging triad” of space, cyberspace and special operations.

Details

  • The three organisations will be developed as Tri-service organisations to promote integration and jointness among military, air-force and navy in respective domains.
  • Defence Cyber Agency (DCA) will work in close co-ordination with the National Cyber Security Advisor. It will focus on non-civilian cyber issues, including safeguarding critical infrastructure.
  • Defence Space Agency (DSA) will work closely with ISRO and DRDO for better utilisation and integration of space resources including information from surveillance satellites.
  • Special Operations Division (SOD) will have central pool of personnel from the Special Forces of the Army (Para commandoes), Navy
  • (Marcos) and IAF (Garud’s). They will be equipped and trained together for unconventional warfare capabilities.

4.6.7. NATIONAL AUTHORITY FOR CHEMICAL WEAPONS CONVENTION (NACWC)

Why in news?

  • The National Authority for Chemical Weapons Convention (NACWC) has been awarded ISO 9001:2008, Certificate which is a recognition of successful performance of the authority with enhanced administrative efficiency and accountability.
  • The ISO 9001 Certificate makes the NACWC the first among all 188 members nations of OPCW to attain this distinction. It is also the first Government of India department to have qualified for ISO 9001:2008 certification.

Chemical Weapons Convention (CWC)

  • It is an arms control treaty that outlaws the production, stockpiling, and use of chemical weapons and their precursors.
  • The Convention opened for signature in Paris on 13 January 1993. It is administered by the
  • Organisation for the Prohibition of Chemical Weapons (OPCW), an intergovernmental organization based in The Hague, Netherlands.
  •  Each State Party is obliged to designate or establish a representative called National Authority to ensure that the Convention is implemented effectively.
  • The main responsibilities of the National Authority are:
  •  Escorting OPCW inspections of relevant industrial or military sites; Submitting initial and annual declarations;
  • Assisting and protecting those States Parties which are threatened by, or have suffered chemical attack; and,
  •  Fostering the peaceful uses of chemistry.

About NACWC

  • NACWC was set up as an office of Cabinet Secretariat to fulfil obligations under Chemical Weapons Convention (CWC).
  • It was established under Chemical Weapons Convention Act, 2000. It acts as national focal point for effective bond with Organisation for Prohibition of Chemical Weapons (OPCW) and other State Parties.

What is a chemical weapon?

  •  A chemical weapon is any toxic chemical that can cause death, injury, incapacitation, and sensory irritation, deployed via a delivery system, such as an artillery shell, rocket, or ballistic missile.
  • Chemical weapons are considered weapons of mass destruction and their use in armed conflict is a violation of international law.
  • Primary forms of chemical weapons include nerve agents, blister agents, choking agents, and blood agents.
  • Choking Agents: chlorine and phosgene,
  • Blister Agents (Or Vesicants): mustard and lewisite,
  • Blood Agents: hydrogen cyanide,
  • Nerve Agents: sarin, soman, VX.

About VX nerve agent

  • It acts on the nervous system (hence the name nerve agents), typically the nerves that control breathing.
  • It is a clear, tasteless and colourless liquid with a consistency something like engine oil.
  • Just one drop containing 10 milligrams of VX, absorbed through the skin, is enough to cause “fatal disruption of the nervous system
  • It inhibits the enzyme acetylcholinesterase, which breaks down the neurotransmitter acetylcholine which overstimulates the
    tissues, resulting in respiratory paralysis and death.
  • The VX nerve agent is banned under international law because it’s a chemical weapon as defined in the Chemical Weapons Conventions.

4.6.8. THERMOBARIC BOMB

Why in news?

  • US recently dropped GBU-43 Massive Ordnance Air Blast (MOAB) bomb on Afghanistan.

More on news

  • GBU-43 Massive Ordnance Air Blast (MOAB), popularly called the Mother of All Bombs has been developed by United States military. It is a thermobaric bomb
  • Thermobaric bomb uses oxygen from the surrounding air to generate an intense, high-temperature blast wave that packs an incredible amount of energy into a small, localised area.
  • It differs from conventional bombs in terms of weight of explosives packed in it. For example: GBU-43 packs in 8,000 kg of explosives. In comparison, the average weight of most deployed conventional bombs which is roughly 250kg.
  • Russia also possesses thermobaric bomb, popularly known as Father of All Bombs which is four times more powerful than the U.S. weapon.

Other types of bombs

Hydrogen Bombs

  • Hydrogen bombs are thermonuclear weapons which employs fusion of isotopes of hydrogen.
  • The result is greatly increased explosive power when compared to single-stage fission weapons.

Salient Features of Hydrogen Bomb:

  • The energy released in a Hydrogen bomb is several magnitudes higher than an Atom bomb.
  • A fusion bomb is more sophisticated and difficult to make, since it requires a much higher temperature — in the order of millions of degrees centigrade. So a fission is carried out first to produce more energy, which is then used to initiate fusion.
  • It is easier to make Hydrogen bombs in small size, so it is easier to place them in missiles.
  • Hiroshima and Nagasaki both were atomic bombs and till date Hydrogen bombs have never been used in war.

Atomic Bombs

  • Atomic bombs differ from hydrogen bombs primarily due to the fact they are fission bombs. It develops its energy from the fission of heavy, unstable nuclei.
  • Radioactive forms of elements such as plutonium and uranium are especially susceptible to fission
  • In fission reactions, heavy nucleus breaks up when it is bombarded with neutrons. The reaction that follows also releases neutrons along with two lighter nuclei. These 2 nuclei are then bombarded with the neutrons generate making it a chain reaction.

4.6.9. LASER WEAPONS SYSTEM (LAWS)

  • Laws is world’s first laser weapon, launched by US
  • It releases photons at the speed of light silently hitting their target and burning it to a temperature of thousands of degrees.
  • It is completely invisible

AWARDS

11.1. INDIRA GANDHI PRIZE FOR PEACE, DISARMAMENT AND DEVELOPMENT, 2014

  • The Indian Space Research Organization (ISRO).
  • Amul and ISRO have signed a MoU for fodder assessment through satellite technology.
  • The main objective is identification/discrimination between food crops and fodder crops and identifying suitable areas of current fallows and cultivable wastelands at the village level.

11.2. NOBEL IN CHEMISTRY

Why in News?

  • Nobel Prize for Chemistry has been awarded to Jacques Dubochet, Joachim Frank and Richard Henderson for the development of high-resolution cryo-electron microscopy.

More on News

  •  Cryo-electron microscopy is a method for imaging frozen-hydrated specimens at cryogenic temperatures by electron microscopy.
  • Specimens that are to be analysed would remain in their native state without the need for dyes or fixatives, which would allow the study of fine cellular structures, viruses and protein complexes at molecular resolution.
  • Contrary to earlier electron micro-scoping, cryo-electron miscroscopy can view solutions (as water would not evaporate under microscope’s vacuum).
  • It helps researchers to freeze biomolecules mid-movement and visualise the processes they have never previously seen.
  • It has been used to image the elusive Zika virus and its medicine associated research.

11.3. NOBEL PRIZE IN PHYSICS

Why in News?

  • Nobel Prize for Physics has been awarded to Scientists Rainer Weiss, Barry Barish and Kip Thorne for contributions to the LIGO detector and the observation of gravitational waves.
  • Neutron stars are created when giant stars die in supernovas and their cores collapse, with the protons and electrons essentially melting into each other to form neutrons.
  • Black holes: It is a place in space where gravity pulls so much that even light can not get out. The gravity is so strong because matter has been squeezed into a tiny space. This can happen when a star is dying.

What are Gravitational Waves and LIGOs?

  • Gravitational waves  are  distortions  or ‘ripples’ in the fabric of space-time caused by some of the most violent and energetic processes in the Universe (star explodes asymmetrically (called a supernova), when two big stars orbit each other, when two black holes orbit each other and merge).
  • These ripples travel at the speed of light through the Universe, carrying with them information about their cataclysmic origins, as well as invaluable clues to the nature of gravity
  • Albert Einstein predicted the existence of gravitational waves in 1916 in his general theory of relativity
  • To detect these waves scientists developed the Laser Interferometer Gravitational-Wave Observatory or LIGO.

Significance

  • It offers a new way to observe the cosmos, helping scientists explore the nature of mysterious objects including black holes and neutron star.
  • It helps in solving some big mysteries in astrophysics – including the cause of bright flashes of light known as “gamma ray bursts” and even the origins of heavy elements such as gold.
  • Indian contribution played a major role, especially in extracting signal from noise, in detecting the gravitational waves with the engagement of 40 scientists from 13 Indian institutions.

Gravitational wave detector in India: INDIGO

  • India-LIGO project will be a replica of the two LIGO detectors and would be stationed at a perpendicular direction to the detectors in USA.
  • It is piloted by Department of Atomic Energy (DAE) & Department of Science and Technology (DST).
  • It will be jointly coordinated and executed by three Indian research institutions: the Inter-University Centre for Astronomy and Astrophysics (IUCAA), Pune and Department of Atomic Energy organisations: Institute for Plasma Research (IPR), Gandhinagar and the Raja Ramanna Centre for Advanced Technology (RRCAT), Indore.
  • The LIGO lab in India will be built in Maharashtra’s Hingoli District.

 

11.4. NOBEL PRIZE IN MEDICINE

Why in News?

  • Nobel Prize in Physiology or Medicine 2017 was awarded to Jeffrey C. Hall, Michael Rosbash and Michael W. Young for their discoveries of molecular mechanisms controlling the circadian rhythm.

More on News

  • The discoveries explain how plants, animals and humans adapt their biological rhythm so that it is synchronised with the Earth’s revolutions.
  • The scientist used fruit flies to isolate a gene that controls the normal daily biological rhythm and showed how this gene encoded a protein that accumulates in the cell during the night and degrades during the day.

Circadian rhythm

  • It is a pattern that guides our bodies when to sleep, rise, eat and regulating many physiological processes.
  • Biological clocks produce circadian rhythms and regulate their timing.
  • It is affected by environmental cues, like sunlight and temperature.
  • It regulates the periods of tiredness and wakefulness during the 24-hour cycle.
  • The biological clock is generated by a structure of neurons, which is found in the hypothalamus in the brain.
  • Biological clock associated factors include High alertness, Fastest increase in blood pressure. Deep Sleep, Fastest reaction times etc.

NON-CONVENTIONAL SOURCES OF ENERGY

5.1 INTRODUCTION

  • Non-conventional(renewable) energy, are sources that are continuously replenished by natural processes. Most of the renewable energy comes directly or indirectly from sun or wind and never get Renewable energy sources are essentially flows of energy, whereas fossil and nuclear fuels are in essence, stocks of energy.

5.2 ADVANTAGES

  • Generation and consumption of energy from non-conventional energy source causes minimal or no degradation of
  • Practically inexhaustible and easily available in nature
  • The energy plants for tapping these non-conventional energy sources are suitable to be set up peripherally in remote areas whereas setting up of conventional sources of energy plants is extremely
  • Non-conventional source of energy are therefore exploited in a decentralised manner generating local
  • The installation cost is high but maintenance and running costs of such plants is very cost effective in longer
  • Gestation period is short and these plants yield quick

5.3 DISADVANTAGES

  • They are subject to influence of natural forces and therefore their availability varies from day to night and also from season that is these plants cannot provide a steady continuous supply of energy.
  • Initial investment cost is high and at present technological development stage it is not very cost

Different types of NC sources of energy:

  • Solar Energy
  • Wind Energy
  • Wave Energy
  • Tidal Energy
  • Ocean Thermal Energy Conversion (OTEC)
  • Geothermal Energy
  • Bio-Energy

5.4 SOLAR ENERGY

  • It refers to the energy collected from the sunlight which is an inexhaustible, clear and basic source of all other energy. It provides energy by the process of nuclear fusion. Solar Energy can be utilised through two different routes such as
  • Solar thermal route(solar energy is converted to thermal energy with the help of devices such as solar water heaters and solar cookers etc)
  • Solar photovoltaic route or solar electric route (made of semiconductor silicon convert solar energy into electrical energy)
  • The largest solar power plant is being constructed in Thardesent in Jaisalmer in Rajastan. The largest solar pond is in Bhuj, Gujarat.

5.5 WIND ENERGY

  • It is basically harnessing of wind power to produce electricity. The Kinetic energy of the wind is converted into electrical energy using wind turbines. In wind mills, wind energy is used directly as mechanical energy for pumping water or grinding grains. Gross Wind power potential in India is about 45,000 MW. The favourable sites for harnessing electricity from wind energy have been located all thru out the coastal region in the including Gujarat, Konkan, Southern Tamil Nadu, Orissa and WB Asia’s largest wind form is located at Mupandal in Tamil Nadu. India is ranked 5th after China, Germany, USA & Spain in terms of energy generation by exploiting wind energy resources. An average wind speed of 25 km / hour is required to produce good quality of

5.6 OCEAN ENERGY

  • Ocean covers more than 70% of earth surface making the world’s largest solar collectors. Ocean energy draws on the energy of ocean waves, tides or on the thermal energy stored in the ocean.

5.7 OCEAN WAVE ENERGY

  • Wave energy technologies generate electricity from the undulating motion of the ocean waves. The power in the moving wave may drive a turbine or device directly or it may pressurise air or hydraulic fluid. Ocean Engineering Cell, IIT Chennai has established 150 KW pilot project at Vizhinjam harbour and Thangassery in Kerala. It has to establish 5 pilot project at Mus Point in Kar- nicobar in Andaman & Nicobar Islands.

5.8  TIDAL ENERGY

  • Tidal energy is caused by gravitational forces of Sun and Moon. It is a form of hydropower that converts energy of tides into electricity. Its potential is 8000- 9000 MW. A barrage or dam is typically used to convert tidal energy into electricity by forcing

the  water  through  turbines activating  a  generator.  The central  electricity  authority  of India has identified Gulf of Kutch &Kambay  and  Sunderban  coast in  West  Bengal  as  favourable locations  with  necessary  tidal range to  harness  tidal  energy. India  is  seeking  technical assistance from France which is a world  leader in  harnessing  tidal energy  and  has  also  successfully established  a  240MW  tidal energy  plant  at  a  place  called  La Rance.

5.9 OCEAN THERMAL ENERGY CONVERSION

  • It makes use of temperature difference created between warm water at the surface of ocean and water at its depth. This temperature gradient is of the range of about 10°C is sufficient to vaporise volatile substances like ammonia, propane etc. In OTEC plant hot surface water acts as a heat source vaporising the volatile substances in their vapour forms help in running turbines – activates a generator to

produce  electricity.  The  best location  for  establishing  OTEC plants  are  situated  along  the coast  of  Tamil  Nadu,  Andaman Nicobar Islands and Lakshadweep.  An  OTEC  project cell  of  IIT  Chennai  has established  1MW  pilot  project each  at  2 places in Kavaratti and Minicar  Islands  at  Lakshadweep. The  sea  solar  power  corporation of  USA  has  entered  into commercial  agreement  with Tamil  Nadu  Government establishment.        It’s first operational   plant at KulasekarPattinam.

5.10 GEOTHERMAL ENERGY

  • It is found trapped in Earth’s crust at a depth of 10 km in the form of hot springs, geysers etc. The geothermal potential of India is primarily located along the Himalayas about 250 hot springs at a temp range of 90-130oC have been identified at places like, Puga Valley in Ladakh, Manikaran in Himachala Pradesh &Tattapani in Chhattisgarh. National Aerospace Laboratory

Bangalore has set up a pilot project in Manikaran for R&D and for collecting operational data to design larger geothermal power plant.

5.11 BIO-ENERGY

  • Under bio-energy, biomass is regarded as the potential source of renewable energy. (Biomass refers to the organic biodegradable waste of animal and plant origin). It is derived from numerous sources including the by-products from the wood industry, agri crops, raw materials from the forest, household waste, cow dung etc. It is mainly rich in carbohydrates like starch & cellulose and also contains varying amount of nitrogen and phosphorous. Biomass offers clean fuel or energy in the form of
  • Biogas is a clean and efficient fuel generated from cow dung, human waste or any kind of bio- degradable material derived through anaerobic fermentation. Bio gas is mainly Methane (55- 65%) & CO2 (35% – 40%). It is a versatile fuel used for the purpose of cooking, lighting, even for running diesel pumpsets at low cost. The organic waste extracted from biogas plant is said to be rich in phosphorous and potassium and can be very effectively used as manure. It has high calorific value, low ash content, absence of polluting gases like sulphur, eliminate the need for pollution control equipment, ease of handling and transportation and storage. Bio energy in the form of biogas is expected to become one of the key energy resources for global sustainable development.
  • The potential of biomass power in India is estimated at about 19,500 MW. The National Biogas Programme was initiated in 1981- 82  for  the  promotion  of  family size biogas plants with the aim of providing  a  clean  and  cheap source  of  energy  along  other benefits  such  as  enriched manure,  improved  sanitation, hygiene  and  reduction  in drudgery  for  women.  Centre  is even  offering  50%  subsidy  thru states to set up biogas plants in rural areas.

5.12 ALTERNATIVE FUEL

  • These are the fuel,which are derived from non-crude oil sources such as bio alcohol (methanol, ethanol, and butanol), biodiesel, hydrogen fuel cell etc. They are renewable sources of energy available indigenously which hold a likely future. Alternate Fuels are both beneficial environmentally and economically.

5.12.1 Environmental Benefits

  • They are free from sulphur, so do not cause SO2
  • They burn  more Produce less carbon monoxide – is reduced by about 35%
  • They also reduce emission of hydrocarbons by almost about 55%
  • They have less particulate matter and the emission reduced in this case is 45%

5.12.2 Economic Benefits:

  • India at present imports 75% of crude oil requirements which are more than Rs.70,000crore annually. AF can be significant import substitution since they are renewable sources of energy. Their continuous demand can also help farmer to earn a steady income by cultivating plants from which they are

5.12.3 Demerits

  • These fuels are highly viscous so require high injection pressure when used in internal combustion engine.
  • These fuels are corrosive in nature. So are not very stable fuels.
  • Their persistant use leads to deposition of carbon in

5.12.4 Biodiesel

  • It is an alternative fuel derived from vegetable oils of Jatropha, Soyabean, Grapeseed, Mahua, Sunflower etc. The fruit of Jatropha plant – grows in poor soil – little water has been found suitable for the extraction of

biodiesel. Chemically bio-diesel is the methyl or ethyl ester of fatty acids obtained by the process of trans etherification.

Vegetable Oil + NaOH + Methand

  • Fatly acids + Methy Ester (FAME)
  • Ethanol blended Petrol
  • Ethanol is an alcohol extracted from molasses – is a by product in sugar industry is available three out India Blending of ethanol – petrol – enhance the burning properties of fuel leading to lower CO in

5.12.6 Hydrogen Fuel Cell

  • Fuel cells convert chemical energy into electrical energy, through an electro chemical process taking place in between fuel and an oxidant separated by an electrolyte. The chemical reaction goes on till the fuel cell is supplied with fuel and oxidiser from outside. Therefore fuel cell does not run down like batteries. The most common fuel is H2 and the oxidiser is O2.

5.12.7 Algae based fuel:

  • Algae requires nutrients, sunlight & water to grow, algae thrive on saline, brackish and waste waters. There have been proposals made where wastewater, human waste, animal waste & plant waste, along with CO2 emissions from industrial processes can all be used as the nutrients in algaculture. In regards to the monoculture production of algae, wastewater, human waste, animal waste & plant waste, along with CO2 emissions from industrial process’s, would have to be all transported or pumped to arid area algaculture farms. After oil is extracted from the algae the algae residue is then used as an animal feedstock or as a soil
  • The lipid, or oily part of the algae biomass can then be extracted and converted into biodiesel through a process similar to that used for any other vegetable oil, or converted in a refinery into “drop-in” replacements for petroleum-based fuels. The algae’s carbohydrate content can

be fermented into bioethanol and biobutanol.

  • Algae bio fuels could yield more than 2000 gallon of fuel / year of production. They are being successfully tested by US

ENERGY

  1. What is frequency modulation? (90/II/8a(C)/3)
  2. What do you understand by nuclear fall out? What is its harmful effects? (90/II/8b(C)/3)
  3. What is a fast breeder reactor? Discuss briefly its role in India’s nuclear energy programme. (92/II/7b/20)
  4. What is heavy water? What is it used for? (92/II/8a(C)/3)
  5. What is RDX made of? Why has it been in the news lately? (93/II/7d/20)
  6. Describe briefly the different phases of India’s nuclear energy programme. (94/II/7a/20)
  7. What is nuclear medicine? Describe briefly its different uses. (96/II/7a/20)
  8. Where are the following located? (96/II/8f(C)/3)

(Give the name of the city and state)

  • Central Drug Research Institute
  • Space Applications Centre
  • India Gandhi Centre for Atomic Research. (96/II/8f(C)/3)
  1. How has India’s Nuclear Programme contributed to the economic and defence requirements of the country? (About 250 words) (97/II/3b/40)
  • What is a fast breeder reactor? Comment on its suitability in the Indian context. (About 250 words) (99/II/3b/40)
  1. What is carbon dating? Describe its applications in archaecology. (99/II/7b/20)
  2. What do the INMAS stand for? (99/II/10d(iii)/1)
  3. Where is Indiran Gandhi Centre for Atomic Research located? (99/II/10e(ii)/1)
  4. Write about Radiation and its effects. (03/1/13b/2)
  5. Discuss in detail “Alternative Energy Sources”. (04/II/10a/30)
  6. Why is hydrogen being acclaimed as the fuel of the

future?  (About  150  words) (05/II/11c/15)

  1. What are the alternative fuels available for the transport sector? Discuss their characteristics, advantages and disadvantages in their utilization. (07/II/11a/15)
  • Write brief note in about 30 words: Artificial (09/II/10a/3)
  1. Comment on the salient features of the Integrated Energy Policy recently approved by the Government and its implications on the energy security needs of the country. (09/I/8a/30)

MONEY AND BANKING

MEASURES OF MONEY SUPPLY IN INDIA

  • Money supply is the stock of liquid assets held by the public which can be freely exchanged for goods and services.
  • RBI calculates four concepts of money supply. These are known as measures of monetary aggregates or money stock measures.
  • The working group under the chairmanship of Dr YB Reddy, then Deputy Governor of RBI (Now Former Governor of RBI) has suggested four new monetary measures (M0, M1, M2, M3) and three liquidity measures (L, L2, L3). Besides the group also recommended the publishing of Financial Sector Survey every three months ‘A Monetary Aggregates.’
  • M0= Currency in circulation + Banker’s Deposit with RBI + other Deposit with RBI.
  • M1 = M0 + Demand Deposits with the Banks.
  • M2 = M1 + Time liabilities portion of savings deposits with the Banks + Certificates of Deposits issued by Bank + Term Deposits with contractual maturity not greater than 1 year with the banks.
  • M3 = M2 + Term deposits with contractual maturity of over 1 year with the Banks + Call Borrowing from Non-Depository Financial Corporations by banks. Here M0 is reserve money which is most liquid measure of money supply. M1 is termed as narrow money and M3 as broad money.
  • The decreasing order of liquidity of these monetary aggregates is M0> M1> M2>M3. The decline in liquidity indicates the shifting of ‘medium of exchange ‘to’ store of value.’Demand deposits are those deposits payable by the bank on demand by a customer like current and savings account

INDIAN CURRENCY SYMBOL (`)

  • The symbol of Indian rupee ` came into use on 15th July, 2010. India is the fifth economy (after America, Britain, Japan and Europe) to accept a unique currency symbol.

Money Market

  • The cluster of financial institutions that deal in short- term securities and loans, gold and foreign exchange are termed as money market.

 Functions of Money Market

  • The money market performs three broad functions
    It provides an equilibrating mechanism for demand and supply of short-term funds.
  • It enables borrowers and lenders of short-term funds to fulfil their borrowing and investment requirements at an efficient market clearing price.
    It provides an avenue for Central Bank intervention in influencing both quantum and cost of liquidity in the
    financial system, thereby transmitting monetary policy impulses to the real economy.
  • Efficient functioning of the money market is important for the effectiveness of monetary policy.

 Organisation of Indian Money Market

  • Indian money market is broadly divided into two parts – organised and unorganised.
  •  The RBI is the apex organisation in the Indian money market. It carries out regulation and development of the Indian money market through instruments such as call/notice/term money market, repo market, certificate of deposit, commercial paper and Collateralised Borrowing and Lending Obligation (CBLO).

 Organised Money Market Call Money Market

  • The call/notice money market forms an important segment of the Indian money market.
  • Call or notice money is an amount borrowed or lent on demand for a very short period. If the period is greater than one day and up to 14 days, it is called the notice money; otherwise the amount is known as call money. No collateral security is needed to cover these transactions.

Treasury Bill Market

  • Treasury bills are money market instruments to finance the short- term requirements of the Government of India. These are discounted securities and thus, are issued at a discount to face value. The return to the investor is the difference between the maturity and issue price.
  • The market that deals with treasury bills is called treasury bill market. These are the lowest risk category instruments for the short-term. RBI issues treasury bills (T-bills) at a prefixed day and for a fixed amount.
    There are four types of Treasury Bills
  • (i)14 Days T-Bill It was introduced in 1997, by the
    RBI. Maturity is in 14 days, it is auctioned on every Friday of every week and the notified amount for auction is `100 crore.
  • (ii) 91 Days T-Bill Maturity is in
    91 days, it is auctioned on every Friday of every week and the notified amount for auction is `100 crore.
  • (iii) 182 Days T-Bill Maturity is in
    182 days, it is auctioned on every alternate Wednesday, which is not a reporting week and the notified amount for auction is `100 crore. It was introduced on the recommendations by Vaghul Working Group.
  • (iv) 364 Days T-Bill Maturity is
  • 364 days, it is auctioned on every alternate Wednesday, Which is a reporting week and the notified amount for the auction is ` 500 crore. It was also recommended by Vaghul Working Group.
  • In recent times, RBI has been issuing only 91 days and 364 days T-Bills.
  • These are bought by the Reserve Bank, Commercial banks, non- banking financial intermediaries, LIC, UTI and GIC. Treasury bills are most liquid, because Reserve Bank is always ready to buy and discount them.

   Commercial Bill Market

  • It is the market that deals in commercial bills. Commercial bills of exchange are negotiable instruments drawn by the seller or drawer of the goods on the buyer or drawer of the good for the value of the goods
  • These bills are called trade bills. These trade bills are called commercial bills, when they are accepted by Commercial Banks. If the bill is payable at a future date and the seller needs money during the currency of the bill, the seller may approach the bank for discounting the
  • The banks discount this bill by keeping a certain margin and credits the proceeds. Banks, when in need of money, can also get such bills rediscounted by financial institutions such as LIC,
  • UTI, GIC, ICICI and IRBI. The
  • maturity period of the bills varies from 30 days, 60 days or 90 days, depending on the credit extended in the industry.

 Certificates of Deposits Market

  • After treasury bills, the next lowest risk category investment option is Certificate of Deposit (CD) issued by banks and Financial Institution (FI).
  • Allowed in 1989, CDs were one of RBI’s measures to deregulate the cost of funds for banks and FIs. A CD is a negotiable promissory note, secure and short-term, of upto a year, in nature.

  Repo Market

  • Repo is a money market instrument which helps in collateralised short-term borrowing and lending through sale/purchase operations in debt
  • instruments.Initially repos were allowed in Central Government treasury bills and dated securities created
  • by converting some of the treasury bills, RBI gradually allowed repo transactions in all government securities and T-bills of all maturities and now State Government Securities, PSu’s bonds, private corporate securities have also been made eligible for repos to broaden the repo market.

  Money Market Mutual Funds (MMMFs)

  • The Scheme was introduced by RBI in April, 1992 with the objective of providing an additional short-term avenue to the individual investors. They have now been brought under the purview of SEBI since March, 2000.

  Commercial Paper Market

  • Commercial Papers (CPs) are negotiable short-term unsecured promissory notes with fixed maturity, issued by well-rated organisations. These are generally sold on discount
  • Organisations can issue CPs either directly  or  through banks or    merchant    banks    (called    as dealers).

 Dated Government Securities

  • These are securities issued by the Government of India and State Governments. The date of maturity is specified in the securities, therefore, they are known as dated

 CAPITAL MARKET

  • Capital market is one of the most important segments of the Indian financial system. It is the market available to the companies for meeting their requirements of the long-term funds. These are markets for buying and selling equity and debt
  • The market consists of a number of individuals and institutions (including the government) that channelize the supply and demand for long-term capital and claims on
  • The demand for long-term capital comes predominantly from private sector manufacturing industries, agriculture sector,trade and the government agencies, while the supply of funds for the capital market comes largely from individual and corporate savings, banks, insurance companies, specialised financing agencies and the surplus of governments. The Indian capital market is broadly divided into the Gilt-edged Market and the Industrial Securities Market.

      GILT-EDGED MARKET

    • The gilt-edged market refers to the market for government and semi-government securities, backed by the Reserve Bank of India (RBI). Government securities are trade able debt instruments issued by the government for meeting its financial
    • The term gilt-edged means ‘of the best quality.’ This is because the government securities do not suffer from risk of default and are highly liquid (as they can be easily sold in the market at their current price). The open market
    • operations of the RBI are also conducted in such securities.

       SECURITIES MARKET

      • The industrial securities market refers to the market, which deals in equities and debentures of the corporate. It is further divided into primary market and secondary

       Primary Market

      • Primary Market (new issue market) deals with ‘new securities,’ i.e., securities, which were not previously available and are offered to the investing public for the first time. It is the market for raising fresh capital in the form of shares and
      • It provides the issuing company with additional funds for starting a new enterprise or for either expansion or diversification of an existing one and thus, its contribution to company financing is direct. The new offerings by the companies are made either as an Initial Public Offering (IPO) or rights

Secondary Market/Stock Market

  • Secondary Market/Stock Market (old issues market or stock exchange) is the market for buying and selling securities of the existing companies. Under this, securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.
  • The stock exchanges are the exclusive centres for trading of securities. It is a sensitive barometer and reflects the trends in the economy through fluctuations in the prices of various

 Securities and Exchange Board of India (SEBI)

  • It is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market.
  • It involves regulating the business in stock exchanges

supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters etc as well as prohibiting unfair trade practices in the securities market.

  • The main functions of SEBI are as follows
    • To regulate the business of the stock market and other securities
    • To promote and regulate the self-regulatory
    • To prohibit fraudulent and unfair trade practices in securities
    • To promote awareness among investors and training of intermediaries about safety of market.
    • To prohibit insider trading in securities
    • To regulate huge acquisition of shares and takeover of companies.

   Reforms in Capital Market of India

  • The capital market has witnessed major reforms in the 1990s and thereafter. It is on the average of
  • growth. Thus, the Government of India and SEBI have taken a number of measures in order to improve the working of the Indian Stock Exchanges and to make it more progressive and vibrant.
    • The major reforms undertaken include
      • Credit Rating Agencies Three credit rating agencies viz the Credit Rating Information Services of India Limited (CRISIL-1988), the Investment Information and Credit Rating Agency of India Limited (ICRA-1991) and Credit Analysis and Research Limited (CARE) were set-up in order to assess the financial health of different financial institutions and agencies related to the stock market
      • Merchant Banking Activities Many Indian and foreign Commercial Banks have set- up their merchant banking divisions in the last few years. It has proved as a helping

hand to factors related to the capital market.

  • Growth of Electronic Transactions Due to technological development in the last few years, the physical transaction with more paper work is reduced. It saves money, time and energy of
  • Growing Mutual Fund Industry The growing of mutual funds in India has certainly helped the capital market to grow. A big diversification in terms of schemes, maturity etc has taken place in mutual funds in India. I t has given a wide choice for the common investors to enter the capital market.
  • Growing Stock Exchanges Initially, the BSE was the main exchange, but now after the setting up of the NSE and the OTCEI, stock exchanges have spread across the country. Recently, a new Inter-connected Stock

Exchange of India has joined the existing stock exchanges.

  • Investor’s Protection Under the purview of the SEBI, the Central Government of India has set-up the Investors Education and Protection Fund (IEPF) in 2001. It works in educating and guiding investors and to protect the interest of the small investors from frauds and also malpractices in the capital
  • Growth of Derivative Transactions Since, June 2000, the NSE has introduced the derivatives trading in the equities. These innovative products have given various options for investment leading to the expansion of the capital
  • Insurance Sector Reforms Indian insurance sector has also witnessed massive reforms in last few years. The Insurance Regulatory and Development Authority (IRDA) was set-up in 2000. It paved the entry of the private
  • insurance firms in India. As many insurance companies invest their money in the capital market, it has expanded.
    • Commodity Trading Along with the trading of ordinary securities, the trading in commodities is also recently encouraged. The Multi Commodity Exchange (MCX) is set-up. The volume of such transactions is growing at a splendid
    • Apart from these reforms, the setting up of Clearing Corporation of India Limited (CCIL), venture funds etc have resulted into the tremendous growth of Indian capital

      Stock Exchanges in India

    • Bombay Stock Exchange (BSE), the oldest stock exchange in Asia, was established in 1875. It is synonymous with Dalal
    • BSE was corporatised and renamed BSE Limited in 2005. In 1894, the Ahmedabad Stock Exchange was started to facilitate

dealing in the shares of textile mills.

  • In 1908, Calcutta Stock Exchange was started to facilitate market for shares of plantations and jute mills. At present, there are 22 stock exchanges in the country. Two types of transaction take place on stock exchanges. These are
  • Investment Transaction Sate/purchase of securities undertaken with short-term gain from differences in yield and
  • Speculative Transaction Sale/purchase of securities undertaken with short-term gain from differences in yield and price. In this, delivery of securities of the payment of full price is
  • Speculative transaction are of different types
    • Spot Transaction involves delivery of and payment for securities on the same
  • Cash Transaction are ready delivery transaction, wherein delivery of and payment for securities is completed within a period of one to seven
  • Forward Transaction involves delivery of and payment for securities will be made on certain fixed settlement days, coming once in 15 or 30
  • On the recommendation of the Narasimham Committee, SEBI was given the power to control and regulate the new issues market as well as stock exchange   through Amendment of the Capital Issues Control Act, 1947.

Approved Stock Exchanges in India

  • UP Stock Exchange, Kanpur
  • Vadodra Stock Exchange, Vadodara
  • Coimbatore Stock Exchange, Coimbatore
  • United Stock Exchange of India Limited
  • Bombay Stock Exchange,
  • Over the Counter Exchange of India, Mumbai
  • National Stock Exchange, Mumbai
  • Ahmedabad Stock Exchange, Ahmedabad
  • Bangalore Stock Exchange, Bengaluru
  • Bhubaneshwar Stock Exchange, Bhubaneshwar
  • Calcutta Stock Exchange, Kolkata
  • Cochin Stock Exchange, Cochin
  • Delhi stock Exchange, Delhi
  • Guwahati Stock Exchange, Guwahati
  • Hyderabad Stock Exchange, Hyderabad
  • Jaipur Stock Exchange, Jaipur
  • Ludhiana Stock Exchange, Ludhiana
  • Chennai Stock Exchange, Chennai
  • MP Stock Exchange, Indore
  • Pune Stock Exchange, Pune
  • Interconnected State Exchange of India Limited

Commodity Exchanges

  • Multi Commodity Exchange of India Limited (MCX)
  • National Commodity and Derivatives Exchange Limited (NCDEX)
  • Indian National Multi-Commodity Exchange (NMCE)
  • Indian Commodity Exchange Limited (ICEX)

  National     Stock     Exchange (NSE)

  • NSE was promoted by leading financial institutions at the behest of the Government of India and was incorporated in November, 1992, as a tax-paying company unlike other stock exchanges in the
  • On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in November, 1992. In April, 1993, it was recognized as a stock exchange and commenced operations in 1994. In October, 1995, NSE became largest stock exchange in the country.
  • Trading at NSE can be classified under two broad categories
  • Wholesale debt categories

Capital market

  • Wholesale debt      market operations are similar to money market operations, where institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury
  • bills, public sector unit bonds, commercial paper, certificate or deposit etc.
  • NSE has several advantages over the traditional trading
  • They are as follows
  • NSE brings an integrated stock market trading network across the
  • Investors can trade at the same price from anywhere in the country since inter- market operations are streamlined coupled with the countrywide access to the securities.
  • Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations with the support   of   total computerized

Stock Market Indices

  • A stocks market index is created by selecting a group of stock that are
  • representative of the whole market of a specified sector or segment of the market. An index is calculated with reference to a base period and a base index value. An index is used to give information about the price movements of products in the financial commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behavior of equity markets. Stock market indices are useful for a variety of reasons. Some of them are They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt.
  • They can be used as a standard, against which to compare the performance of an equity
  • It is a lead indicator of the performance of the overall economy or a sector of the economy.
  • Stock indexes reflect highly up to date
  • Modern financial applications such as Index funds, index futures, index options play an important role in financial investment and     risk
  •  Bombay Stock Exchange (BSE)
  • Established in 1875, BSE Limited (formerly known as Bombay Stock Exchange Limited), is Asia’s first stock exchange and one of India’s leading exchange groups. Over the past 137 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital raising
  • Some indices of BSE are given below
    • SENSEX – MIDCAP
    • SMLCAP – BSE-100
  • – BSE-200 – BSE-500
  • Around 5000 companies are listed on BSE making it world’s number one exchange in terms of listed members. BSE Limited is world’s 5th most active exchange in terms of number of transactions handled
  • through its electronic trading system. It is also one of the world’s leading exchange (5th largest in May, 2012) for Index options trading (Source-World Federation of Exchanges).
  • BSE is the first exchange in India and second in the world to obtain an ISO 9001:2000
  • BSE’s popular equity index the SENSEX is India’s most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa).
  • The Bombay Stock exchange launched BSE Carbonex, the first carbon based thematic index in the country. Which takes a strategic view of organizational commitment to climate change mitigation. This Index has been launched with the aim of creating a benchmark and increasing
  • awareness about the risks posed by climate change.
  • It will enable investors to track performance of the constituent companies of BSE-100 Index regarding their commitment to greenhouse gases emission reduction.

     MCX Stock Exchange Limited (MCX-SX)

  • It is private stock exchange headquartered in Mumbai, which was founded in 2008. It offers currency futures contracts for US Dollar-Rupee, Euro-Rupee, British Pound-Rupee, Japanese Yen-Rupee.
  • It offers electronic trading platform in currency futures contracts. The exchange received permissions to deal in interest rate derivatives, equity, futures and options on equity and wholesale dept segment, vide SEBI’s letter dated 10th July, 2012.
Some of the Major Stock IndicesDetails
International
BBC Global 30World stock market index of 30 of the largest companies by stock market value in Europe, Asia and the America.
MSCI WorldIndex includes stocks of all the developed markets
S&P Global 1200Global Stock index covering 31 countries and around 70 percent of global market capitalization.
United States
AMEX CompositeComposite value of all of the stocks traded on the American Stock Exchange
Dow Jones Indexes
Dow Jones Industrial Average
NASDAQ CompositeBroad market index of all of the common stocks and similar securities traded on the NASDAQ stock market
NYSE CompositeCovers all common stock listed on the New York Stock Exchange
S & P 500Stock market index containing the stocks of 500 Large-Cap corporations. Comprises over 70% of the total market cap of all stocks traded in the U.S. Owned by Standard & Poor’s.
China
SSE CompositeIndex of all listed stocks (A shares and B shares) at Shanghai Stock Exchange
Hong Kong
Hang Seng IndexesRecord daily changes of the largest companies of the Hong Kong stock market (represent about 67% of capitalization of the Hong Kong Stock Exchange).
Some of the Major IndicesDetails
Canada
S&P/TSX CompositeIndex of the stock prices of the largest companies on Toronto Stock Exchange
Europe
Dow Jones Euro Stock 50Index of 50 Euro-zone stocks
Russia
MICEX IndexPrice index of the 30 major and most liquid Russian stocks traded at the Moscow Interbank Currency Exchange.
Switzerland
Swiss Market Index (SMI)Includes the twenty largest and most liquid SPI stocks

  SENSEX (The Barometer of Indian Capital Market)

  • BSE sensitive index also referred to as BSE-30 is a free float market capitalization-weighted stock market index of 30 well established and financially sound companies listed in Bombay Stock Exchange.
  • The free-float               market capitalization of a company is determined by multiplying, the price of its stocks by the number of shares issued by a company, which is readily available for trading on the stock
  • The base year/period of SENSEX was 1978-79=100. The calculation
  • of SENSEX involves dividing the free float market capitalization of30 companies in the index by a number called the index divisor.

      Over The Counter Exchange of India (OTCEI )

    • Traditionally, trading in stock exchanges in India followed a conventional style, where people used to gather at the exchange offices and bids and offers were made by open outcry. This old- age trading mechanism in the Indian Stock Markets used to create many functional inefficiencies.
    • Lack of liquidity and transparency, long settlement periods and benami transactions are a few examples that adversely affected investors. In order to overcome these inefficiencies, OTCEI was incorporated in 1990, under the Companies Act, 1956. OTCEI is the first screen based Nationwide Stock Exchange in

     Commodity Futures Market

  • Commodities traded on the commodity futures market during 2009, included a variety of agricultural commodities, bullion,crude oil, energy and metal products. Agricultural commodities, bullion and energy products accounted for a large share of the commodities traded in the commodities future market.
  • The Central Government has announced a decision to merge the commodities market regulator, forward markets Commission (FMC), with the capital markets regulator, Securities and Exchange Board of India (SEBI).

Reference Rates – MIBID, MIBOR

      • A reference rate is an accurate measure of the market price. In the fixed income market, it is an interest rate that the market respects and closely watches. It plays a useful role in a variety of
      • NSE had developed MIBID (Mumbai Interbank Bid Rate) and MIBOR (Mumbai Interbank Offer Rate) for the overnight market. This was launched sometime in 1998. They are the reference rates. Then, NSE launched the 14 day MIBID/MIBOR and then the one month and the three month MIBOR and MIBID. Thus, all the four categories of MIBOR and MIBID are now available.
      • It is the simple average of the quotes by the various participants in the market-banks, PDs, institutions polled on a daily
      • LIBOR (London Inter-Bank Offered Rate) It is the average of interest rates provided by leading banks in London that they would be charged if borrowing from other banks. It is used as a global benchmark interest rate by many banks around the world.
  • BANKING

    • History of Indian banking goes back to 19th It failed. First successful bank in India was Bank of Bengal set-up in 1806. First Commercial Bank in country was Awadh Commercial Bank established in 1881.
    • In 1921, Imperial Bank, of limited liability of India was set-up. There were two important steps in the banking sector after independence in 1949. Nationalisation of Reserve Bank of India and the Banking Regulation Act, which empowered RBI to regulate banking sector in
    • The Punjab National Bank, established in Lahore in 1895, has survived to the present and is now one of the largest banks in
    • The largest bank-imperial Bank of India was nationalized in 1955 and renamed as State Bank of India followed by formation of its 7 associates in 1959.
    • The step toward social banking was taken with the nationalization of 14 Commercial Bank on 19thJuly, 1969. Six more Commercial

    Banks were nationalized on 15th

    August, 1980.

     Scheduled Commercial Banks

    • All banks which are mentioned in the Second Schedule of RBI Act, 1934 are known as Scheduled Banks.
    • These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. These banks comprise Scheduled Commercial       Banks and Scheduled Cooperative Banks. Scheduled Commercial Banks in India are categorized into five different groups according to their ownership and/or nature of operation.
    • These bank groups are
      • State Bank of India and its Associates,
      • Nationalised Banks,
      • Private Sector Banks,
      • Foreign Banks and
      • Regional Rural
    • Apart from basic banking business, banks also undertake other services such as safe custody of valuables, granting

    and issuance of letters of credit to facilitate international trade, buying and selling in foreign exchange and collection of bills among others.

    • Banks also act as agent of the government and other entities to undertake agency business. Extending loans and advances to the needy sectors of the economy on a priority basis is a very crucial function of the banking sector.
    • Banking crisis during 1913-1917 and failure of 588 banks in various parts of the country

    during the decade ended 1949 underlined the need for regulating and controlling Commercial Banks. The Banking Companies Act was passed in February, 1949, which was subsequently amended to read as Banking Regulation Act, 1949. This Act provided the legal framework for regulation of the banking system in India.

    • Now, the Indian Banks have overseas presence in the form of physical branches, representative offices, joint ventures and subsidiaries.

Regional Rural Banks (RRBs)

  • The Regional Rural Banks (RRBs) were established in 1975 to supplement the efforts of cooperative and commercial banks in different states with the equity participation from commercial banks, central government and state governments. RRBs have been sponsored by public sector banks and are akin to commercial banks in their method of operations and set up, but the area of activity and loan operations are restricted to specified areas and target groups. As the RRBs are scheduled commercial banks, they report their major items of liabilities and assets on a fortnightly basis as a part of the Section 42(2) return, which forms the base for compilation of monetary aggregates.

Public Sector Banks

  • After 1969 Commercial Banks are broadly classified into Nationalised or Public Sector Banks and Private Sector Banks. The State Bank of India and its five Associate Banks along with
  • Nationalised Banks are the Public Sector Banks.
  • Nationalised Banks
    From 1st February, 1969, the government imposed Social Control on banks by introducing certain provisions in the Banking Regulation Act, 1949.
  • It imposed severe restriction on the composition of the Board of Directors and internal management and administration of banking companies.
  • It also introduced restrictions on advances by banking companies.
  • These were intended to ensure that the bank advances were not confined to large scale industries and big business houses, but were also directed, in due proportion to other important sectors like agriculture, small scale industries and exports.
1Allahabad Bank
2Andhra Bank
3Bank of Baroda
4Bank of India
5Bank of Maharashtra
6Canara Bank
7Central Bank of India
8Corporation Bank
9Dena Bank
10Indian Bank
21Bhartiya Mahila Bank
11Indian Overseas Bank
12Oriental Bank of
Commerce
13Punjab and Sind Bank
14Punjab National Bank
15Syndicate Bank
16UCO Bank
17Union Bank of India
18United Bank of India
19Vijaya Bank
20IDBI Bank Limited

On 15th April, 1980, six more

State Bank of India

  • State Bank of India (SBI) was previously called Imperial Bank of India in 1921, which was created by amalgamation of 3 Presidency Banks viz., Bank of Bengal, Bank of Bombay and Bank of Madras. It was nationalized in 1955.
  • banks having demand and time liabilities of not less than ` 200 crores were nationalized. The undertakings of these banks are taken over and vest in six corresponding new banks under the banking companies (Acquisition and Transfer of Undertakings) Act, 1980.
  • Later on, in the year 1993, government merged New Bank of India with Punjab National Bank. It was the only merger between Nationalised Banks and resulted in the reduction of the number of Nationalised Banks from 20 to 19.
  • In the group wise classification, since 31th December, 2007 IDBI Bank Limited has been included in Nationalised Banks.

State Bank of India

  • State Bank of India (SBI) was previously called Imperial Bank of India in 1921, which was created by amalgamation of 3 Presidency Banks viz., Bank of Bengal, Bank of Bombay and Bank of Madras. It was nationalized in 1955.

State Bank Group

  • State Bank of Bikaner and jaipur
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Travancore

Bharatiya Mahila Bank

  • Former Prime Minister Dr. Manmohan Singh and UPA
    Chairperson, Sonia Gandhi jointly inaugurated India’s first all women bank, Bharatiya Mahila Bank in Mumbai on 19th November, 2013, on the birth anniversary of former Prime Minister Indira Gandhi. The main objective of the bank is to focus on the banking needs of women and to promote their economic empowerment. The bank will commence operations with an initial capital of `. 1000 crore. The Union Government on 12th November, 2013
  • appointed Usha Anantha Subramanian as the first Chairperson and Managing Director of public sector Bharatiya Mahila Bank (BMB). The BMB is based on the principle of: Women empowerment is India’s empowerment’.
  • An only for women bank first time in India and to be fully operated by women.
    This is the only and first public sector bank incorporated through an Act of the Parliament.
  • Branches of BMB become operational-Mumbai, Kolkata, Chennai, Ahmedabad Guwahati, Bengaluru and Lucknow.

Private Banks

  • All those banks where creator parts of stake or equity are held by the private shareholders are called as private sector banks. In India, private sector banks are known with two names; old Private sector banks and new private sector banks.
  • The banks which were not nationalized at the time of nationalization of banks that took place during 1969 and 1980 are known as the old private sector banks. These were not nationalized, because of their small size and regional focus.
  • The banks, which came in operation after 1991, with the introduction of economic reforms and financial sector reforms are known as new private sector banks. Banking Regulation Act was then amended in 1993, which permitted the entry of new
  • private sector banks in the Indian banking sector.

Foreign Banks

  • Foreign Banks are allowed to operate in India through branches and representative offices. A new Foreign Bank desirous of opening a branch in India is required to apply to Reserve Bank of India giving relevant information about its shareholders, financial position and the dealings with Indian parties.
  • The request is examined keeping in view the financial soundness of the bank, international and home country ranking, international presence, economic and trade relations between the two countries and supervisory standards in the home country etc.
  • Regional Rural Banks
    In 1976, the Parliament enacted the Regional Rural Banks Act, 1976 to provide for the incorporation, regulation and winding up of Regional Rural
    Banks. The Act has been made effective from the 26th September, 1975.
  • The equity of the RRBs is contributed by the Central Government, concerned State Government and the sponsor bank in the proportion of 50:15:35.
  • The objective of the RRBs is to develop the rural economy by providing; for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs and for matters connected therewith and incidental thereto.
  • Besides the Reserve Bank which is the regulatory authority for the RRBs in accordance with the provisions of the Banking Regulations Act, 1949, the Banking Regulations Act empowers NABARD (National Bank for Agriculture and Rural

Development) to undertake the inspection of RRBs.

 

  • A Regional Rural Bank seeking permission of the Reserve Bank for opening branches has to obtain the recommendation of NABARD.
  • RRB (Amendment) Bill, 2014 This amendment to raise the authorized capital of the RRBs from Rs. 5 crore to Rs. 2000 crore. The bill also provides that the authorized capital of any RRB shall not be reduced below Rs. 1 crore.

Scheduled Co-operative Banks

  • Co-operative Banks have also played a limited, but important role in the banking system of the country. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Co-operative Banks.

State Co-operative Banks

  • State Co-operative Bank means the Principal co-operative society
    in a state, the primary object of which is the financing of other co-operative societies in the state.
  • The Banking Ombudsman Scheme, 1995 notified by RBI on 14th June, 1995 was in terms of powers conferred on the bank by Section 35A of the Banking Regulation Act, 1949 (10 of 1949) to provide for a system of redressal of grievances against banks.

Urban Co-operative Banks

  • UCBs are registered under the Co-operative Societies Acts of the respective State Governments. UCBs having a multi-state presence are registered under the Multi-state Co-operative Societies Act and regulated by the Central Government.
  • Besides, the Reserve Bank also has regulatory and supervisory authority for bank related operations under certain provisions of the Banking Regulation Act, 1949 (asapplicable to Co-operative Societies).

Reserve Bank of India (RBI)

  • RBI was set-up on the basis of Hilton Young Commission recommendation in April, 1935, with the enactment of RBI Act, 1934.
  • RBI continued to serve as the Central Bank to Burma (Myanmar), until Japanese occupation of Myanmar in April, 1947.
  • RBI also continued to serve as Central Bank to Pakistan, until June, 1948.
  • RBI was nationalized in 1949 and its First Indian Governor was CD Deshmukh.
  • Main functions of RBI are
    Maintaining monetary stability so that business and economic life can deliver welfare gains of a properly functioning mixed economy.
  • Maintaining financial stability and ensuring sound financial institutions so that monetary
  • policy can be safely pursued and economic units can conduct their business with confidence.
  • Maintaining a stable payments system so that financial transaction can be safely and efficiently executed.
  • Promoting the development of financial infrastructure in terms of markets and systems and to enable it to operate efficiently. i.e., playing a leading role in developing a sound financial system so that it can discharge its regulatory function efficiently.
  • Ensuring that credit allocation by the financial system broadly reflect the national economic priorities and societal concerns.
  • Regulating the overall volume of money and credit in the economy with a view to ensuring a reasonable degree of price stability.
  • Role of the RBI
  • RBI Plays the following roles in the Indian banking and Financial System
    Note Issuing Authority
  • RBI has had the sole authoring to issue currency notes other than one rupee notes/coins and coins of smaller denominations since, its inception. One rupee notes/coins and coins of smaller denomination are issued by the Central Government, but are put into circulation through the RBI.
  • RBI can issue notes against the securing of coins/bullion, foreign securities, rupee coins,
    Government of India securities as such bills of exchange (promissory notes as are eligible for purchase by it. The Reserve Bank has adopted Minimum Reserve System for the note issue. Since 1957, it maintains gold and foreign exchange reserves of Rs. 200 crore of which atleast Rs. 115 crore should by in gold

Printing of Securities and Minting in India

Security PressStationRelated by
Currency Notes Press-1928NasikBank notes from Rs. 1 to 100
Security Paper (Established 1967-68)HoshangabadBanks and currency
notes paper
Bank Notes Press (1974)DewasBank notes of Rs. 20,50,100 and 500
Security Notes Printing Press (Established 1982)HyderabadUnion excise duty
stamps
India Security Press
Nasik (1992)
Postal material postal
stamps etc
Modernised Currency
Notes Press (1995)
Mysore (Karnataka)
Sarbani (West Bengal)
Coins are minted at four places viz, Mumbai, Kolkata, Hyderabad and Noida
  • 1 note released after 20 years
  • In November 1994, printing of ` 1 note was stopped mainly due to highest cost and for freeing capacity to print currency notes of higher denomination.
  • Printing of ` 2 and 5 notes were discontinued in 1995
  • Notes of ` 1 to be issued would be legal tender as provided in The Coinage Act 2011.

Banker to the Government

  • RBI has the obligation to transact the banking business of the Union and State Governments. In this capacity, it accepts, money on account of these governments makes payments on their behalf and carries out their exchange and remittance operations. It does not get any remuneration for these functions. It also manages public debt of these governments for which it charges a commission.

Banker to Banks

  •  RBI has a special relationship with the banks. It controls the amount of their reserves (SLR
    and CRR) and holds all or part of their reserves. Banks borrow from the RBI in times of need and RBI is in effect the lender of last resort. RBI is the ultimate source of money and credit in India.

Regulator and Supervisor

  • In this role, RBI provides the broad parameters within which the banking and financial system of India functions. Its regulatory powers are provided by the RBI Act and the Banking Regulation Act. RBI also regulates many types of Non-Banking Financial Companies (NBFCs).

Some of the regulatory powers of RBI are as follows

  • Issuing licenses for new banks.
  • Prescribing minimum requirements related to paid- up capital, reserves, etc.
  • Inspecting the working of banks with regard to organizational set-up, branch expansion etc.
  • Conducting investigations into complaints of fraud

irregularities etc. in respect of banks.

  • Approving or           forcing amalgamations/reconstruction

/liquidation of banks.

  • Controlling appointments/termination of chairman and chief executive officers of private sector

 

Custodian of Foreign Reserves

  • As the custodian of foreign reserves, RBI is responsible for managing the investment and utilization of the country’s foreign reserves in the best possible manner. With the introduction of floating exchange rate system and convertibility of the rupee, RBI also has to act to stabilize the foreign exchange market.
  • RBI’s function in this role is to develop and regulate the foreign exchange market and to facilitate external trade and

 

Credit Control

  • Credit control is an important tool used by RBI, a major weapon of the monetary policy used to control the demand and supply ofmoney (liquidity) in the economy. Central Bank administers control over the credit that the Commercial Banks grant. Such a method is used by RBI to bring economic development with stability.

    Need for Credit Control

    • To encourage the overall growth of the priority
    • To keep a check over the channelization of
    • To achieve the objective of controlling inflation as well as deflation.
    • To boost the economy by facilitating the flow of adequate volume of bank credit to different sectors.
    • Stability in exchange rate and money market of the

     

    Methods of Credit Control

    • There are two types of methods of credit control

     

    Quantitative/Credit Control

    • Quantitative credit control is used to control the volume of credit and indirectly to control theinflationary and deflationary pressures caused by expansion and contraction of credit.
      • The quantitative credit control consists of
        • Bank Rate It is also called the rediscount rate. It is the rate, at which the RBI allows finance to commercial banks. It is currently at 9%.
        • Cash Reserve Requirement (CRR) Since, 1962, the RBI has been empowered to vary the CRR requirement between 3% and 15% of the total demand and time deposits. The RBI (Amendment) Bill, 2006, empowers RBI to prescribe CRR cash that banks deposit with the RBI without any floor rate or ceiling
        • Statutory Liquidity Ratio (SLR) It is the ratio of liquid asset, which all commercial banks have to keep in the form of cash, gold and unencumbered approved securities equal to not more than 40% of their total demand and time deposits
        • Open Market Operations(OMOs) It role as a credit control instrument emerged after economic reforms of 1991, when Indian economy was flushed with excessive inflow of foreign funds. Under OMOs, when the RBI sells G-secs in the market. It withdraws money/liquidity from the market and thus, reduces volume of credit leading to control of
        • Repo Rate It was introduced in December, 1992, by RBI. It is the rate, at which RBI lends short-term money to the banks against securities. When the repo rate increases (Dearer Money Policy) borrowing from the RBI becomes more expansive and when the repo rate decreases, (Cheaper Money Policy) borrowing becomes cheaper. Repo rate injects liquidity in the
        • Reverse Repo Rate It was introduced in November, 1996. It is the rate, at which banks park short-term excess liquidity with the RBI. Anincrease in the reverse repo rate means that the RBI is ready to borrow money from the banks at higher rate of interest. As a result, banks would prefer to keep more and more surplus funds with the RBI. Reverse repo rate withdraws liquidity from the market.
          • Other banking operation activities are Marginal Standing Facility Rate (MSFR), Net Demand and Time Liabilities
          • Repo rate and reverse repo rate are the parts of Liquidity Adjustment Facility (LAF) of RBI.
          • LAF allows the RBI to manage market liquiding on a daily basis and to send interest rate signals to the
          • LAF operates through repo and reverse repo auctions. It has now becomes the principal operating instrument of monetary

            Qualitative Credit Control

            • Qualitative credit control is used by RBI for the selective purposes, some of which are

             

            • Margin Requirements This refers to difference between the securities offered and amount borrowed by the banks.
            • Consumer Credit Regulations This refers to issuing rules regarding down payments and maximum maturities of installment credit for purchase of
            • RBI Guidelines RBI issues oral/written statements, appeals, guidelines, warnings etc to the
            • Rationing of Credit The RBI controls the      credit

            granted/allocated                      by commercial banks.

            • Moral Suasion An application of pressure, but not force to get members to adhere to a policy RBI gives advices and suggestions to the bankers to follow the instructions given by

4.6.1           Banking Sector Reforms Narsimham Committee Recommendation

  • Deregulation of interest
  • Reduction in              reserve
  • Prudential
  • Supervision of Commercial Banks.
  • Measures to improve the competitive efficiency in banking sector.

Narasimham-I

  • The purpose of the Narasimham- I Committee was to study all aspects relating to the structure, organization, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. The committee submitted its report to the Finance Minister in November, 1991.

Narasimham-II

  • The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since, 1992

with      the      aim      of      further strengthening       the       financial institutions  of  India.  It  focused on  issues  like  size  of  banks  and capital adequacy ratio among other   things.   M.   Narasimham, Chairman,  submitted  the  report of the committee in April, 1998.

Damodaran Committee

  • The committee, headed by former SEBI Chairman M Damodaran, was-set up by the Central Bank to look into the issues of customer services and evaluate the existing system of grievance redressal mechanism prevalent in banks, its structure and efficacy and recommend measures for expeditious resolution of

Recommendations

  • Bank should offer no-frill savings accounts with certain basic facilities such as cheque book and ATM card without prescribing any minimum balance.
  • All fixed deposit receipts should prominently indicate the
  • annualized interest rate to help customers take more informed decisions. The Indian Banks Association should standardize the account opening form for all banks, similar to the one used for loans. Title deeds of property should be returned to customers within 15 days of the full settlement of home loans.

Swabhiman (Campaign)

  • A major financial inclusion initiative was formally launched as
    remittances using the services of Business Correspondents.
  • The initiative enables government subsidies and social security benefits to be directly credited to the accounts of the beneficiaries, enabling them to draw the money from the business correspondents
    their village itself.

Khandelwal Committee Report

  • Government constituted a Committee on Human Resources issues of Public Sector Banks (PSBs) under the Chairmanship of Dr. AK Khandelwal, who has submitted its report.
  • The committee made 105 recommendations on matters related to Manpower and Recruitment Planning, Training, Career Planning, Performance Management,Reward Management, Succession Planning and Leadership Development,Motivation Perfessionalisation of HR, Wages, Service Conditions and Welfare etc.
  • As 49 recommendations required further deliberations, the remaining 56 recommendations were forwarded to PSBs with the request that an HR Plan for each bank be prepared and got approved by the respective Board of Directors.

Basel Norms

  • It was in 1988 that the central banking bodies of the developed
  • economies agreed upon the provision of Capital Adequacy Ratio (CAR), also known as the Basel Accord. The accord was agreed upon at Basel, Switzerland, at a meeting of the Bank of International Settlements (BIS). This accord provides recommendations on banking, regulations with regard to capital risk, market risk and operational risk. It’s objective was to ensure that financial institutions have enough capital to meet obligations and absorb unexpected losses.

Basel I

  • The Basel Committee on Bank Supervision (BCBS) published a set of minimal capital requirements for banks, to maintain a certain amount of free capital (ratio) to their assets, as a cushion against probabe losses in investment and loans. Basel-I primarily, focus on credit risk. In 1988, this ratio capital was decided to be 8%. The CAR is the percentage of the total capital to the total weighted assets.
  • CAR = (Total of Tier-I and Tier-II capital) / Risk weighted assets.
  • Thus, CAR is also known as Capital to Risk-Weighted Assets
  • Ratio (CRAR). It is used to protect the depositors and promote the stability and efficiency of the financial system.
  • Assets of the banks are classified and grouped into 5 categories according to credit risk-0, 10, 20, 50 and 100%. Some critics have criticized the Bass I accord as the norm treated all borrowers alike, no weight age was given to a variability of security for a credit facility and it treated loans of varying maturity in the same manner.

Basel II

  • It attempts to integrate Basel I capital standards with national regulations, by setting the minimum capital requirement of financial institutions with the goal of ensuring institution liquidity. It aims at securing international convergence on regulations governing the CAR.
  • Minimum capital requirements.
  • Supervisory review – Market discipline
  • The supervisory review process on the banks internal process and
    system, while the market discipline focuses on market disclosures being made by the banks. These two pillars reinforce the pillars of minimum capital requirement.
  • CAR is held in the form of shareholders equity and certain other defined classes of capital.

Banking Ombudsman

  • Banking Ombudsman Scheme was introduced by the RBI in 1995 under the Banking Regulation Act, 1949. It is a senior official appointed by the RBI to redress customer complaints against deficiency in certain banking services.
  • Decision of Banking Ombudsman can be appealed against to the appellate authority (vested in a Deputy Governor of RBI).
  • Banking ombudsman can award compensation to the complainant. In this, it takes into account the loss of the complainant’s time, expenses incurred and the harassment and mental anguish suffered.
  • It has jurisdiction over all commercial banks, RRBs, Scheduled primary co-operative banks, NBFCs etc. It deals with
    matters less than or equal to
    ` 10 lakhs.

Development Financial Institutions

  • Financial institutions are an important part of the Indian financial system as they provide medium to long-term finance to different sectors of the economy.
  • The institutions have been set-up meet the growing demands of particular segments, such as export, rural housing and small industries.
  • These institutions have been playing a crucial role in channelizing credit to the needy sectors and addressing the challenges/issues faced by them.
  • The four financial institutions – Exim Bank, National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB) and Small Industries Development Bank of India (SIDBI) are under full- fledged regulation and supervision of the Reserve Bank.
  • As in the case of commercial banks, prudential norms relating to income recognition, asset
    classification and provisioning and capital adequacy ratio are applicable to these financial institutions as well. These institutions also are subject to on- site inspection as well as off-site surveillance.
  • Since, all the banks are directly or indirectly contributing to the development works in the country, thus, all are development financial institutions.

Development Financial Institutions of the Capital Market –
National Level Development Banks

InstitutionYear of EstablishmentMain Functions
Industrial Development Bank of India1964Apex institution in field of industrial development Provides term finance, development services Refinance to eligible banks
Industrial Finance Corporation of India (IFCI)194850% subsidiary of IDBI and 50% held by banks and insurance limited companies Assistance in the form of loans Conduct techno economic surveys and technical consultancy etc.,
Industrial Credit and Investment Corporation of India (ICICI)1955Private sector development bank Share capital even from World Bank Development of underwriting facilities Provision of foreign currency loans
Small industries Development bank of India (SIDBI)1990Wholly owned subsidiary of IDBI Promotion, financing and development of small scale industries
Industrial Investment bank of India (Industrial Reconstruction Corporation of India –IRCI)1971To help sick units for speedy reconstruction and rehabilitation Undertake management of sick units and develop infrastructure for them
Industrial Reconstruction Bank of India (IRBI)1985IRBI was established in 1985 to take over IRCI

National Housing Bank (NHB)

  • National Housing Bank was set- up on 9th, July, 1988 under the National Housing Bank Act, 1987 as a wholly-owned subsidiary of the Reserve Bank to act as an apex level institution for housing.
  • NHB has been established to achieve, among other things, the following objectives.
  • To provide a sound, healthy, viable and cost effective housing finance system to all segments of the population and to integrate the housing finance system with the overall financial system.
  • To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.
  • To Augment resources for the sector and channelize them for housing.
  • To make housing credit more affordable.
  • To regulate the activities of housing finance companies based on regulatory and
    supervisory authority derived under the Act.
  • To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country.
  • To encourage public agencies to emerge as facilitators and suppliers of serviced land for housing.

National Bank for Agriculture and Rural Development (NABARD)

  • National Bank of Agriculture and Rural Development (NABARD) is one of the subsidiaries where the majority stake is held by the Reserve Bank. NABARD is an Apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development
    and secure prosperity of rural areas.

Industrial Finance Corporation of India Limited (IFCI)

  • It was the first development finance institution set-up in 1948 under the IFCI Act in order to provide long-term institutional credit to medium and large industries. It aims to provide financial assistance to industry by way of rupee and foreign currency loans.
  • Underwrites/subscribes the issue of stocks, share, bonds and debentures of industrial concern, etc.
  • It has also diversified its activities in the field of merchant banking, syndication of loans, formulation of rehabilitation programmes, assignments relating to amalgamations and mergers, etc.

Industrial Development Bank of India (IDBI)

  • It was established in July, 1964, as an apex financial institution for industrial development in the country. It caters to the diversified needs of medium and large scale industries in the form
    of financial assistance, both direct and indirect. Direct assistance is provided by way of project loans, underwriting of and direct subscription to industrial securities, soft loans, technical refund loans, etc. While, indirect assistance is in the form of refinance facilities to industrial concerns.

Small Industries Development Bank of India (SIDBI)

  • It was set-up by the Government of India in April, 1990, as a wholly owned subsidiary of IDBI. It is the principal financial institution for promotion, financing and development of small scale industries in the economy aims to empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development.

Industrial Investment Bank of India Limited (IIBI)

  • It was set-up in 1985 under the Industrial Reconstruction Bank of India Act, 1984, as the principalcredit and reconstruction agency for sick industrial units. It was converted into IIBI on 17th March, 1997, as a full-fledged development financial institution. It assists industry mainly in medium and large sector through wide ranging products and services. Besides project finance, IIBI also provides short duration non-project asset-backed financing in the form of underwriting/direct subscription, deferred payment guarantees and working capital/other short-term loans to companies to meet their fund requirements.

Industrial Credit and Investment Corporation of India (ICICI)

  • ICICI is a financial institution set-up in 1955 as a result of international co-operative effort to foster private investment in India. It was sponsored by a mission from the World Bank for the purpose of developing small and medium industries in the private sector. It was registered in January, 1955, under the Indian Companies Act. It provides risk and loan capital for creation, expansion and
    modernization of productive facilities, encourages others to invest and thereby promotes the widespread distribution of industrial securities and furnishes managerial, technical and administrative advice to Indian industry.
  • In all the development financial institutions set-up by the Indian Government after Independence, ICICI registered the most spectacular success. In fact, the financial assistance sanctioned and disbursed by ICICI rose tremendously during the 1990’s and had exceeded the assistance extended by IDBI which was the apex institution in the field of development finance.
  • In March 2002, the ICICI merged with the ICICI Bank and there was a creation of Universal Bank in India. With this ICICI as a development financial institution does not exist anymore.
  • It was established in 1956 as a wholly-owned corporation of the Government of India. It was formed by the Life Insurance Corporation Act, 1956, with the objective of spreading life insurance much more

Export-Import (EXIM) Bank

  • Recognising the important role of exports in maintaining the viability of external sector and in generating employment, the Reserve Bank had sought to ensure adequate availability of Concessional Bank credit to exporters. It took the lead role in setting up the Export Import Bank of India (EXIM Bank) in January, 1982.
  • In recent years, with the liberalisation of real and financial sectors of the economy, interest rates on export credit have been rationalised within the overall monetary and credit policy framework.
  • In order to provide adequate credit to exporters on a priority basis, the Reserve Bank has also prescribed a minimum proportion of bank’s adjusted net bank credit to be lent to exporters by Foreign Banks
    widely and in particular to the rural area.
  • Commercial paper is one of the instrument through which corporate raise debts from the financial markets.
  • Micro finance is a provision of financial services to the people of low income groups.

Banks Board Bureau

  • The government to be set-up an autonomous banks board bureau within month of August 2015, a super authority for public sector unit lenders to recommend board level appointments and advise on strategies for raising
    funds as well as mergers and acquisitions.
  • BBB is likely to be a six-member board comprising former CMDs of banks and financial services sector experts. It will be headed by Secretary, Department of Financial Services. There are 22 state-owned banks in India including SBI, IDBI Bank and Bharitya Mahila Bank.
  • BBB will search and select heads of public sector banks and help them develop differentiated strategies of capital raising plans to innovative financial methods and instruments.
  • It would also be responsible for selection of non-executive chairman and non-official directors on the boards. The government decided to permit public sector banks to raise up to
  • ` 1600000 crore (`1600 billion) from capital markets by diluting government holding to 52% in phases so as to meet Basel III capital adequacy norms. Public sector banks alone required
  • ` 2.40 lakh crore (` 2.40 trillion) by 2018 to meet global Basel III norms.

Non-Banking Financial Companies (NBFCs)

 

  • NBFCs are essentially banks, since they perform the basic twin functions of attracting deposit from the public and making loans. However, unlike commercial banks, they are not incorporated as a bank and are not governed by the provision of the Banking Regulation Act, 1949.
  • With the Enactment of RBI (Amendment) Act, 1997, the
    RBI now control the functioning of NBFCs.
  • NBFCs as a whole account for 11.2% of assets of the total financial system.
  • Two broad categories of NBFCs are
  • (i) Deposit taking NBFCs (NBFCs – ND).
  • (ii) Non-deposit taking NBFCs (NBFCs-ND).
  • Capital to Risk-weighted Assets Ratio (CRAR) norms were made applicable to NBFCs-D in 1998. The CRAR norm for NBFC-D is 12% (15% in case of unrated NBFCs-D).
  • NBFCs-ND-SI are non-deposit taking systemically important NBFCs as they have asset size of `100 crore and above.
  • Mutual funds are the most important among the newer capital market institutions. MFs function is to 9 mobilise the savings of the general public and invest them in stock market securities.

NBFCs

  • NBFCs are classified into the following categories based on their principal business: Equipment leasing Company (ELC), Hire purchase Financing Company (HPFC), Loan Company (LC), Investment Company (IC), Mutual Benefit Financial Company (Nidhi), Mutual Benefit Company (Un-notified Nidhi), Miscellaneous Non-Banking Company (Chit Fund Company), Residuary Non-Banking Company (RNBC) and Housing Finance Company (HFC). In the present regulatory framework, the entire gamut of regulation and supervision of the activities of the NBFCs has been redefined, in terms of both the thrust as well as the focus.
  • Consequently, the NBFCs are classified into three categories for the purposes of regulation, namely, namely:
  • 1. those accepting public deposits (non-demand),
  • 2. those which do not accept public deposits and
  • 3. core investment companies which hold at least 90 percent of their assets as investments in the securities of their group, holding or subsidiary companies and are not trading in such securities.
  • The companies which accept public deposits are required to comply with all the prudential norms of income recognition, asset classification, accounting standards, provisioning for bad and doubtful debts, capital adequacy and credit or investment concentration norms, etc. The NBFCs not accepting public deposits are regulated in a limited manner. Prudential norms like income recognition, asset classification, uniform accounting year and accounting standards that disclose the status of their financial health have been made applicable to them. The core investment companies have been exempted from all the provisions of directions.

Insurance regulatory and Development Authority of India (IRDAI)

 

  • The Insurance Regulatory and Development Authority of India was established in the year 1999 by the government of India.
  • The reason for the establishment was to safeguard the interest of the policy holders and for the upgradation of the entire insurance sector.
  • The Insurance Regulatory and Development Authority of India has been authorized to register the new insurance companies in India.

Insurance Companies

  • Insurance industry includes two sectors; Life Insurance and General Insurance. Life Insurance in India was Introduced by Britishers. A British firm in 1818 established the Oriental Life Insurance Company at Calcutta now Kolkata.
  • Since, the opening up, the number of participants in the insurance industry has gone up from 7 insurers (including LIC, four public sector general insurers, one specialized insurer and the GIC as the national re-insurer) in 2000 to 49 insurers as on 30th, September, 2011.
  • Insurance Companies in India the insurance companies offer protection against losses. They deal in life insurance, marine insurance, vehicle insurance and so on.
  • The insurance companies collect the little savings of the investors and then reinvest those savings in the market. The indigenous insurance companies are collaborating with different foreign insurance companies after the liberalization process. This step has been incorporated to expand the Indian insurance market and make it competitive

UPSC Previous Year Questions:

  1. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? (CSE 2015)
  2.  Reducing revenue expenditure
  3. Introducing new welfare schemes
  4. Rationalizing subsidies
  5. Expending industries

1.Select the correct answer using the code given below.

  • a) 1 and 3 only
  • b) 2 and 3 only
  • c) 1 only
  • d) 1, 2, 3 and 4

2. With reference to Indian economy, consider the following: (CSE 2015)

  • 1. Bank rate
  • 2. open market operations
  • 3. Public debt
  • 4. Public revenue

Which of the above is/are component/components of Monetary Policy?

  • a) 1 only
  • b) 2, 3 and 4
  • c) 1 and 2
  • d) 1, 3 and 4

3. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, Which of
the following is likely to happen? (CSE 2015)

  • a) India’s GDP growth rate
    increases drastically
  • b) Foreign Institutional Investors may bring more capital into our country
  • c) Scheduled Commercial Banks may cut their lending rates
  • d) It may drastically reduce the liquidity to the banking system

4. ‘Pradhan Mantri Jan-Dhan Yojana’
has been launched for (CSE 2015)

  • a) Providing housing loan to poor people at cheaper interest rates
  • b) Promoting women’s Self-Help Groups I backward areas
  • c) Promoting financial inclusion in the country
  • d) Providing financial help to the marginalized communities

5. If the interest rate is decreased in an economy, it will (CSE 2014)

  • a) decrease the consumption expenditure in the economy
  • b) increase the tax collection of the Government
  • c) increase the investment expenditure in the economy
  • d) increase the total savings in the economy

6. Which of the following are with
‘Planning’ in India? (CSE 2014)

  • 1. The Finance Commission
  • 2. The National Development Council
  • 3. The Union Ministry of Rural Development
  • 4. The Union Ministry of Urban Development
  • 5. The Parliament

Select the correct answer using the codes given below:

  • a) 1, 2 and 5 only
  • b) 1, 3 and 4 only
  • c) 2 and 5 only
  • d) 1, 2, 3, 4 and 5

7. What does venture capital mean? (CSE 2014)

  • a) A short-term capital provided to industries
  • b) A long-term start-up capital provided to new entrepreneurs
  • c) Funds provided to industries at times of incurring losses
  • d) Founds provided for replacement and renovation of industries

8. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to (CSE 2014)

    • a) banking operations
    • b) communication networking

c) military strategies

d) supply and demand of agricultural products

9. What is/are the facility/ facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? (CSE 2014)

  • 1. It enables the beneficiaries to draw their subsidies and social security benefiters’ in their villages.
  • 2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below:

  • a) 1 only
  • b) 2 only
  • c) Both 1 and 2
  • d) Neither 1 nor 2

10. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? (CSE 2014)

  • 1. To enable the Central Bank to control the amount of advances the banks can create
  • 2. To make the people’s deposits
    with banks safe and liquid
  • 3. To prevent the commercial banks from making excessive profits
  • 4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below:

  • a) 1 only
  • b) 1 and 2 only
  • c) 2 and 3 only
  • d) 1, 2, 3 and 4

11. Priority Sector Lending by banks in India constitutes the lending to : (CSE 2013)

  • a) Agriculture:
  • b) Micro And Small Enterprises
  • c) Weaker Sections
  • d) All of the above

12. A rise in general level of prices may be caused by : (CSE 2013)

  • 1. An increase in the money supply
  • 2. A decrease in the aggregate level of output
  • 3. An increase in the effective demand

Select the correct answer using the codes given below:

  • a) 1 only
  • b) 1 and 2 only
  • c) 2 and 3 only
  • d) 1, 2 and 3

13. The Reserve bank of India regulates the commercial banks in matters of : (CSE 2013)

  • 1. Liquidity of assets
  • 2. Branch expansion
  • 3. Merger of banks
  • 4. Winding-up of banks

Select the correct answer using the codes given below.

  • a) 1 and 4 only
  • b) 2, 3 and 4 only
  • c) 1, 2 and 3 only
  • d) 1, 2, 3 and 4

14. An increase in the bank rate generally indicates that the?
(CSE 2013)

  • a) Market rate of interest is likely to fall
  • b) Central bank is no longer making loans to commercial banks
  • c) Central bank is following an easy money policy
  • d) Central bank is following a tight money policy

15. Which of the following grants/ grant direct credit assistance to rural households? (CSE 2013)

  • 1. Regional rural banks
  • 2. National bank for agriculture and rural development
  • 3. Land development Banks Select the correct answer using the codes given below.
  • a) 1 and 2 only
  • b) 2 only
  • c) 1 and 3 only
  • d) 1, 2 and 3

16. Consider the following liquid assets : (CSE 2013)

  • 1. Demand deposits with the banks
  • 2. Time deposits with the banks
  • 3. Savings deposits with the banks
  • 4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

  • a) 1-4-3-2
  • b) 4-3-2-1
  • c) 2-3-1-4
  • d) 4-1-3-2

17. In the context of Indian economy, ‘open market operations’ refers to? (CSE 2013)

  • a) Borrowing by scheduled banks from the RBI
  • b) Lending by commercial banks to industry and trade
  • c) Purchase and sale of government securities by the RBI
  • d) None of the above

18. Supply of money remaining the same when there is an increase in demand for money, there will be: (CSE 2013)

  • a) A fall in the level of prices
  • b) An increase in the rate of interest
  • c) A decrease in the rate of interest
  • d) An increase in the level of income and employment

 

19. Which of the following can be said to be essentially the parts of ‘Inclusive Governance’? (CSE 2012)

  • 1. Permitting the Non-Banking Financial Companies to do banking
  • 2. Establishing effective District Planning Committees in all the districts
  • 3. Increasing the government spending on public health
  • 4. Strengthening the Mid-day Meal Scheme

Select the correct answer using the codes given below:

  • a) 1 and 2 only
  • b) 3 and 4 only
  • c) 2, 3 and 4 only
  • d) 1, 2, 3 and 4

20. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? (CSE 2012)

  • 1. Other bank retains their deposits with the RBI.
  • 2. The RBI lends funds to the commercial banks in times of need.
  • 3. The RBI advises the commercial banks on monetary matters.

Correct

  • a) 2 and 3 only
  • b) 1 and 2 only
  • c) 1 and 3 only
  • d) 1, 2 and 3

21. The basic aim of Lead Bank Scheme is that (CSE 2012)

  • a) big banks should try to open offices in each district
  • b) there should be stiff competition among the various nationalized banks
  • c) individual banks should adopt particular districts for intensive development
  • d) all the banks should make intensive efforts to mobilize deposits.

22. Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern? (CSE 2011)

  • 1. The ‘teaser loans’ are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
  • 2. In India, the ‘teaser loans’ are
    mostly given to inexperienced
    entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

  • a) 1 only
  • b) 2 only
  • c) Both 1 and 2
  • d) neither 1 nor 2

23. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? (CSE 2011)

  • a) Commercial Banks
  • b) Cooperative Banks
  • c) Regional Rural Banks
  • d) Micro-finance Institutions

24. The lowering of Bank Rate by the Reserve Bank of India leads to(CSE 2011)

  • a) more liquidity in the market
  • b) less liquidity in the market
  • c) no change in the liquidity in the market
  • d) mobilization of more deposits by Commercial Banks

25. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government? (CSE 2010)

  • a) Cash Credit Ratio
  • b) Debt Service Obligation
  • c) Liquidity Adjustment Facility
  • d) Statutory Liquidity Ratio

26. With the reference of the Non Banking Financial Companies (NBFCs) in India Consider the following statements: (CSE 2010)

  • 1. They cannot engage in the acquisition of Securities issued by the government.

2. They cannot accept demand deposit like Saving Account.
Which of the statements given above is /are correct?

  • a) 1 only
  • b) 2 only
  • c) Both 1 and 2
  • d) Neither 1 nor 2

27. In the parlance of financial investments, the term ‘bear’ denotes: (CSE 2010)

  • a) An investor who feels that the price of a particular security is going to fall.
  • b) An investor who expects the price of particular share to rise.
  • c) A shareholders or a bondholder who has an interest in a company.
  • d) Any lender whether by making a loan or buying a bond.

28. In India, the interest rate on savings account in all the nationalized commercial banks is fixed by (CSE 2010)

  • a) Union Ministry of Finance
  • b) Union Finance Commission
  • c) Indian Banks’ Association
  • d) None of the above.

29. With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct? (CSE 2010)

  • a) The Banking Ombudsman is appointed by the Reserve Bank of India.
  • b) The Banking Ombudsman can consider complaints from Non – Resident Indians having accounts in India.
  • c) The orders passed by the Banking Ombudsman are final
    and binding on the parties concerned.
  • d) The service provided by the Banking Ombudsman is free of any fee.

30. With reference to the India, consider the following: (CSE 2010)

  • 1. Nationalization of Banks.
  • 2. Formation of Regional Rural Banks.
  • 3. Adoption of villages by Bank Branches.

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

  • a) 1 and 2 only
  • b) 2 and 3 only
  • c) 3 only
  • d) 1, 2 and 3

31. Consider the following statements: (CSE 2010)
The functions of commercial banks in India include

  • 1. Purchase and sale of shares and securities on behalf of customers.
  • 2. Acting as executors and trustees of wills.

Which of the statements given above is/are correct?

  • a) 1 only
  • b) 2 only
  • c) Both 1 and 2
  • d) Neither 1 nor 2

32. In the context of independent India’s Economy, which one of the following was the earliest event to take place? (CSE 2009)

  • a) Nationalization of insurance companies
  • b) Nationalization of State Bank of India
  • c) Encasement of Banking Regulation Act
  • d) Introduction of First Five – Year Plan

33. In the context of Indian news in recent times, what is MCX – SX? (CSE 2009)

  • a) A kind of supercomputer
  • b) Title of moon impact probe
  • c) Stock exchange
  • d) Nuclear powered submarine

34. What does S & P 500 relate to ? (CSE 2008)

  • a) Supercomputer
  • b) A new technique in e – business
  • c) A new technique in bridge building
  • d) An index of stocks of large companies.

ANSWERS:

  • 1. (a) 2. (c) 3. (c) 4. (c) 5. (c) 6. (c) 7. (b) 8.(a)
    9.(c) 10.(b) 11.(d) 12.(d) 13.(d) 14.(d) 15.(c) 16.(d)
    17.(c) 18.(b) 19.(b) 20.(d) 21.(c) 22.(a) 23.(a) 24.(a)
    25.(c) 26.(b) 27.(a) 28.(d) 29.(c) 30.(c) 31.(c) 32.(c)
    33.(c) 34.(d)

PUBLIC FINANCE

PUBLIC FINANCE

  • The study of government’s revenue and expenditure public debt, financial administration and fiscal policy is called as Public Finance. Public finance can be divided into following sections
  • Public Revenue
  • Public Expenditure
  • Public Department
  • Fiscal Policy
  • Financial Administration

PUBLIC REVENUE

Non-Tax Revenue

  • Non-tax revenue are those receipts, which are received from sources other than taxes like fees, fines, penalties and income from public  enterprise

Tax Revenue

  • Tax is a compulsory payment by the citizens to the government to meet the public expenditure. It is legally  imposed  by the government on the  taxpayer and in no case taxpayer can deny to pay taxes to the government.

Types of Tax

  • Tax can be direct or indirect: Income tax, wealth tax, gift tax, etc are the examples of direct taxes and sales taxes, excise duty, customs duty, etc. are the example of indirect taxes

  Direct Tax

  • A direct tax is that, which is borne by the person on whom it is levied. A direct tax burden cannot be shifted to other person. Direct as well as indirect money burden of the direct tax is on the person on whom the tax is imposed. Impact of the tax as well as incidence of the tax is on the same
  • As a proportion of gross tax revenue, direct  taxes    have accounted for over a half of total tax revenue since 2007-08.

Some of the direct taxes are as follows

Personal Income Tax

  • It is the tax levied directly on the income of individuals by the Central Government. Income from all sources is added for taxation.

Corporate Tax

  • It is levied on the profit of the companies or corporations. Now, the corporate tax rate is 30%. To prevent companies from avoiding taxes a Minimum Alternate Tax (MAT) at 15% of book profit is levied. It is the largest source of revenue of the Central Government, covering about 18% of the total revenue

Estate Duty

  • It was imposed on the total property passing on the death of a person. It was a minor source of revenue and was abolished from 1st April, 1985.

Wealth Tax

  • This tax is levied on the net wealth of the individuals, Hindu undivided family and joint stock companies. To assess net wealth, net obligations are deducted from its market value. It is a minor source of revenue of the government, primarily imposed to reduce concentration of wealth in the Society

Gift Tax

  • This tax is imposed by the Central Government on all donations and gifts over and above the prescribed limits to the family members. However, donation given by the charitable institutions and companies is not covered under gift tax. This tax is basically imposed to check the evasion of estate duty and wealth tax.

Interest Tax

  • This tax is imposed on the interest income of the Commercial Banks on their gross loans and advances. Now, it is not in force in India

Indirect Tax</h3 >

  • Indirect taxes are those taxes, which have their primary burden or impact on one person, but that person succeeds in shifting his burden on to
  • Consequently, the final or the real burden of the taxes or the incidence has to be borne by a third person. In India, sales tax, excise duty, custom duty etc are the examples of indirect Taxes

Some of the indirect taxes are as follows

Central Excise Duties

  • Central excise duties are imposed by the Central Government on the goods produced within the country except certain goods on which State Governments are empowered to impose tax. These goods includes liquor, drugs

Value Added Tax (VAT)

  • VAT is a multi point sales tax with set-off for tax paid on purchases of inputs. There is no cascading (tax on tax) effect as there is credit mechanism for tax paid on The tax is levied on  the  value  of  the  product and consumption only. Total burden of the tax is borne by the consumer only.VAT is simply a new name for the sales tax of states, in which a number of other indirect taxes have been merged. Haryana was the first state to introduce VAT from 1st April, 2003. Now most states have introduced VAT
  • Value added =Total sales – Cost of intermediate

Central   Value  Added  Tax (CENVAT)

  • The basic purpose of CENVAT is to eliminate the cascading effects of the taxes by tax credit System
  • Under the CENVAT scheme, a manufacturer of final product or provider of taxable service shall be allowed to take credit of duty of excise as well as service tax paid on input received.

Custom Duties

  • These duties are imposed on commodities, which are to be imported or exported from India. In other words, when goods cross the political boundary of a country or come from other countries, custom duties are imposed. Like excise duties, customs duties also contribute largely to the government

 

Service Tax

  • Comparatively a new concept in India, service tax is a tax imposed on the person, who avails any specified service. Its importance as a source of revenue has been increasing in recent years
  • The government is receiving more and more revenue from service tax. Because of this, year after year, more and more services are being covered under the service tax ner
  • This tax was introduced in India in 1994-95. With economic growth and expansion of service sector in the economy, revenue from service tax has been increasing over the years. From Budget 2014-15, the negative list concept in service tax has been reformed and a number of service tax. However, Some of the components under the negative list have been kept intact.

Good and Services Tax (GST)

  • It is an integrated scheme of taxation that does not discriminate between goods and services and is a part of the proposed tax reforms that centre on evolving an efficient and harmonised consumption tax system in the country
  • Five key features of the GST are
    • Two components one levied by the centre (referred to as Central GST) and the other levied by the states (referred to as State GST), rates for which would be prescribed appropriately.
    • The Central GST and the State GST would be applicable to        all transactions of goods and services except the exempted goods and services.
    • The Empowered Committee has decided to adopt a two-rate structure a lower rate for necessary items and goods of basic importance and a standard rate for goods in general. There will also be a special rate for precious metals and a list of exempted items.
    • The GST will be levied on import of goods and services into the
    • The administration of the Central GST to the Centre and for State GST to the states would be given

Benefits of GST

  • To the Economy It will simplify India’s tax structure, broaden the tax  base   and create a common market across states.
  • To the Corporate It will be beneficial for India Insurance and the average tax burden on companies will fall.
  • To the       Exporters        The subsuming of major Central and State Taxes in GST, complete and comprehensive set-off input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured good and Services
  • To Industry manufacturing Sector in India It is one of the highly taxed  sectors                 in    the world. GST when enforced would eliminate          complexities in the present taxation structure and consequently                   prevent          the loss nearly 50% of the advantage of lower manufacturing costs that India has over the Western nations.
  • To the    Centre      and       State Increase    in  Tax  Revenues are predicted by      the government  with     the implementation of GST as it is speculated to           bring              about raise in employment promotion of exports and            consequently a            significant                boost  overall economic Growth
  • To Individuals            and Companies with the Collection of both the central and state taxes proposed to be made at the point of sale, both components will be charged on the manufacturing costs and the individuals will benefit from lowered prices in the process which will subsequently lead to increase in consumption thereby profiting Companies

Direct Tax Code (DTC)

  • The Direct Tax Code (DTC) was proposed by the UPA government to consolidate the law relating to the direct taxes. The Bill seeks to replace the Income Tax Act, 1961 and Wealth Tax Act, 1957. The Bill, in its original form, widened the tax slabs and lowers corporate tax rates

The main proposals of the Bill were

  • It widened income tax slabs for individuals with fresh slabs
  • Proposed a flat tax rate of 30% on Business income of companies.
  • It removed several tax deductions currently allowed for companies.
  • Removed the distinctions between short-term and long- term capital gains for all assets except securities listed on stock exchanges.
  • Bill introduced General Anti Avoidance Rules (GAAR) to allow the authorities to classify and arrangements to be made for curtailing the evasion of tax
  • The Direct Tax Code Bill, 2011 lapsed with the dissolution of the 15th Loksabha
  • The new Government will review the DTC in its present shape and take a view in the whole matter
  • Thus, the DTC Bill had been put on hold for reconsideration by the Goverment

Sources of Revenue

  • The following list will show the respective sources of revenue for the Union and the states

Union Sources

  • Corporation tax.
  • Currency, coinage and legal tender, foreign
  • Duties of excise on tobacco and certain goods manufactured or produced in
  • Estate duty in respect of property other than agricultural land.
  • Fees in respect of any of the matters in the Union List, but not including any fees taken in any
  • Foreign Loans
  • Lotteries organised by the Government of India or the Government of a
  • Post Office Savings bank
  • Post and             Telegraphs, Telephones, Wireless, Broad casting and other like forms of communication.
  • Property of the Union
  • Public Debt of the Union
  • Rates of stamps duty in respect of Bills of Exchanges, Cheques, promissory Notes rtc
  • Reserve Bank of India
  • Taxes on income other than agricultural
  • Taxes on the capital value of the assets, exclusive of agricultural land of individuals and companies.
  • Taxes other than stamp duties on transactions in stock exchanges and future Markets
  • Taxes on the sale or purchase of newspapers and    on advertisements                   published therein.
  • Terminal taxes on goods or passengers, carried by railways, sea or air

State Sources

  • Capitation tax.
  • Duties in respect of succession to agricultural land
  • Duties of excise on certain goods produced or manufactured in the state, such as alcoholic liquids opium etc
  • Estate duty in respect of agricultural land
  • Fees in respect of any of the matters in the State List, but not including fees taken in court
  • Land revenue
  • Rates of stamps duty in respect of documents other than those specified in the Union
  • Taxes on agricultural Income
  • Taxes on land and buildings
  • Taxes on mineral rights, subject to limitations imposed by Parliament relating to mineral development.
  • Taxes on the consumption or sale of Electricity
  • Taxes on the entry of goods into a local area for consumption, use or sale
  • Taxes on the sale and purchase of goods other than than newspapers
  • Taxes on advertisements other than those published in newspapers.
  • Taxes on goods and passengers carried by road or on inland waterways.
  • Taxes on vehicles
  • TTaxes on animals and boats
  • Taxes on professions, trades callings and employments
  • Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling.

    Taxes Levied and Collected by the Union, but Assigned to the States (Article 269)

    • Duties in respect of succession to property other than agricultural land.
    • Estate duty in respect of property other than agricultural land.
    • Taxes on railway fares and freights.
    • Taxes other than stamps duties on transactions in stock exchanges and future
    • Taxes on the sale or purchase of newspapers and    on advertisements  published Markets
    • Terminal taxes on goods or passengers carried by railways, sea or air
    • Taxes on the sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of inter- state trade or Commerce

Duties Levied by the Union, but Collected and Appropriated by the States (Article 268)

  • Stamp duties and duties of excise on medicinal and toilet preparations (those mentioned in the Union List) shall be levied by the Government of India but shall be Collected
  • In the case where such duties are leviable within any Union territory, by the Government of India
  • In other cases by the States, within which such duties are respectively leivable

Taxes Which are Levied and Collected by the Union but Which may be Distributed between the Union and the States (Articles 270 and 272)

  • Taxes on income other than agricultural income
  • Union duties of excise other than such duties of excise on medicinal and toilet preparations as are mentioned in the Union List and collected by the Government of India.
  • Taxes on income does not include corporation tax. The distribution of income-tax proceeds between the Union and the States is made on the basis of the recommendations o f the Finance Commission.

 Public Debt

  • Public Debt in the Indian context refers to the borrowings of the Central and State Governments. Public debt of Central Government consists of internal and external debt and other liabilities.

 Internal Debt

  • Includes market borrowing, money raised by issuing bonds treasury bills, special securities issued to the RBI

External Debt

  • Includes borrowings from foreign countries and international financial
  • Non-government external debt includes NRI deposits, trade credit,       external        commercial borrowings etc.

Union Sources

  • Corporation tax.
  • Currency, coinage and legal tender, foreign
  • Duties of excise on tobacco and certain goods manufactured or produced in
  • Estate duty in respect of property other than agricultural land.
  • Fees in respect of any of the matters in the Union List, but not including any fees taken in any
  • Foreign
  • Lotteries organised by the Government of India or the Government of a
  • Post Office Savings
  • Post and             Telegraphs, Telephones, Wireless, Broad casting and other like forms of communication.
  • Property of the
  • Public Debt of the
  • Rates of stamps duty in respect of Bills of Exchanges, Cheques, promissory Notes
  • Reserve Bank of
  • Taxes on income other than agricultural
  • Taxes on the capital value of the assets, exclusive of agricultural land of individuals and companies.
  • Taxes other than stamp duties on transactions in stock exchanges and future
  • Taxes on the sale or purchase of newspapers and                 on advertisements                                        published
  • Terminal taxes on goods or passengers, carried by railways, sea or

State Sources

    • Capitation tax.
    • Duties in respect of succession to agricultural
    • Duties of excise on certain goods produced or manufactured in the state, such as alcoholic liquids opium
    • Estate duty in respect of agricultural
    • Fees in respect of any of the matters in the State List, but not including fees taken in Court
    • Land Revenue
    • Rates of stamps duty in respect of documents other than those specified in the Union List
    • Taxes on agricultural Income
    • Taxes on land and buildings
    • Taxes on mineral rights, subject to limitations imposed by Parliament relating to mineral development.
    • Taxes on the consumption or sale of Electricity
    • Taxes on the entry of goods into a local area for consumption, use or sale
    • Taxes on the sale and purchase of goods other than
    • Taxes on advertisements other than those published in newspapers.
    • Taxes on goods and passengers carried by road or on inland waterways.
    • Taxes on Vehicles and Boats
    • Taxes on animals and
    • Taxes on professions, trades callings and
    • Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling.
    • Tolls

Taxes Levied and Collected by the Union, but Assigned to the States (Article 269)

  • Duties in respect of succession to property other than agricultural land.
  • Estate duty in respect of property other than agricultural land.
  • Taxes on railway fares and freights.
  • Taxes other than stamps duties on transactions in stock exchanges and future
  • Taxes on the sale or purchase of newspapers and    on advertisements             published
  • Terminal taxes on goods or passengers carried by railways, sea or air
  • Taxes on the sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of inter- state trade or far
Finance Finance 
CommissionChairmanCommissionChairman
First (1951)Mr KC Niyogi8th (1982)Mr.YB. Chavan
2nd (1956)Mr KA Santhanam9th (1987)Mr.NKP Salve
3rd (1961)Mr AK Chanda10th (1992)Shri KC Pant
4th (1966)Mr RV Rajamannar11th (1998)Prof AM Khusro
5th (1968)Mr Mahaveer Tyagi12th (2004)Dr C Rangarajan
6th (1972)Mr Brahmananda Reddy13th (2008)Dr Vijay L Kelkar
7th (1977)Mr JM Shellat14th (2012)YV Reddy

 

14th Finance Commission

  • The Government of India on 24thFebruary 2015 accepted recommendations of the 14th Finance Commission for increasing share of states in central taxes to 42%. The commission                                      recommended increase in the share of states in the centre’s tax revenue from the current 32% to 42%, the single largest      increase         ever recommended.                              The recommendation will give more power to states in determining how  they  spend  this  money  (italso correspondingly reduces the fiscal resources available to the centre). The 14th Finance Commission, headed by former RBI Governor YV Reddy, has endorsed the compensation road map for the goods and services tax finalised by the Centre, but has called for an autonomous and independent GST compensation fund.
  • In the case of value-added tax, compensation was provided to the states for three years, at 100% in the first year 75% in the second year, and 50% in the third year and the commission has suggested a similar pattern for GST compensation, but for five years.
  • The government had introduced the Constitution Amendment Bill on GST in Lok Sabha in the previous session. It is hoping to introduce the new tax from April
  • The GST aims to create seamless national market for goods and services by removing distortions caused by state fiscal policies and entry taxes that create geographical boundaries. It will replace excise duty and service tax at the central level and state taxes including value-added tax, entry tax, octroi, electricity duty, purchase
  • The commission has called for reforms in property tax regime by giving powers to panchyats and municipalities to levy the tax on plinth basis with a provision for periodic revision and minimising grant of exemptions. The per capita revenue from property tax varied from `42 to `1677 across states.
  • Members of the 14th Finance Commission YV Reddy, Abhijit Sep, M Govinda Rao, Sushama Nath and Sudipto Mundle

     FISCAL POLICY

  • Fiscal policy is that part of government policy which is concerned with raising revenue through taxation and with deciding on the amount and purpose of government spending. The idea of using fiscal policy to combat recessions     was introduced by John Maynard Keynes in the 1930s

 Objectives of Fiscal Policy

  • Fiscal policy in India has had two major objectives
  • Improving the         growth performance of the Ensuring social justice to the people.
  • Fiscal policy influences the growth performance in the following manner
    • Influencing resource mobilisation India has done well in this area as reflected in the tax GDP ratio which increased from 6.3% in 1950-51 to 16.2% in 2011-12.
    • Increasing taxes on the rich and on expenditure on luxury goods while lowering them on the poor and goods of common Spending on welfare and development

 Fiscal Responsibility and Budget Management (FRBM) Act, 2003

  • FRBM Act was passed by the Union Government to provide a legislative control over the fiscal situation of the country, which had deteriorated earlier. It was meant to bring fiscal discipline, increase plan expenditure, leave the RBI with autonomy as far as money creation was concerned, meet the consumption expenditure of the government from its own resources
  • The fiscal Responsibility and Budget Management Act, 2003 (FRBM Act), has been amended as part of the Finance Bill, 2012. It has introduced two concepts to reform the expenditure aspect of the fiscal policy.

These are

  • Effective Revenue Deficit: It excludes from the conventional revenue deficit, grants for the creation of capital assets. This is an important development for the reason that while the revenue deficit of             the                             consolidated general government fully reflects total     capital                              expenditure incurred, in the accounts of the centre, these transfers are shown as reserve expenditure. Therefore,  the                        mandate   of eliminating                 the                              conventional revenue                          deficit    of    the    centre becomes problematic. With this amendment, the endeavour of the government under the FRBM Act would be to eliminate the effective revenue defict
  • Medium-term Expenditure Framework Statement: It will set forth a three-year rolling target for expenditure indicators. It would help in undertaking a de-novo exercise for allocating resources for prioritised schemes and weeding out others that have outlived their utility.

FINANCIAL ADMINISTRATION

  • All financial activities involving issues of financial administration including public budget, its passing, auditing and similar other matters. Without a extensive study of relevant dimensions of financial administration, the subject of public finance          remains incomplete

Union Budget

  • The Budget is an extensive account of the Government’s finances, in which revenues from all sources and expenses of all activities undertaken are aggregated.
  • Union budget is an expression of the fiscal policy of the government.
  • The Finance Minister presents the Union Budget every year in the Parliament that contains the Government of India’s revenue and expenditure for one fiscalyear, which runs from 1st April  to 31st March.

Historical Preview

  • The term budget is actually derived from a French word Bougette which means a sack or pouch. It was first used in France in 1803. In the Constitution of India, the term budget is nowhere used
  • It is rather mentioned as Annual Financial Statement under Article 112 comprising the Revenue Budget, Capital Budget and also the estimates for the next fiscal year called budgeted Estimates.
  • As per the British legacy, the Union Budget of India used to be presented on the evening of last working day of the month of February to follow the British Budget.
  • During the NDA regime, then Finance Minister Yashwant Sinha was the first to present the budget on 28th February, 2001 at 11 (The budget has to be passed by the Lok Sabha before it can come into effect on 1st April.)

Preparation of Budget

  • The Budget is prepared by the budget division of Department of Economic affairs in the Ministry of Finance (MoF), after consulting with other ministries and the Planning
  • The process majorly includes following steps which may be sequential or overlapping too

Overall Budget

  • Overall budget are available for more than 1 fiscal year but are not distributed to individual fiscal year. It is a hierarchical and structure containing budget structure elements (budget hierarchy).

Passing of Finance Bill

(Under Rule 219 of the Lok Sabha)

Classification of the Budget

  • Budget of the Union Government is classified into revenue account and capital account.

Revenue Account

  • Consists of all those receipts/expenditure that do not entail sale or creation of assets or increase/decrease of liabilities.
  • Capital Account Consists of receipts/expenditure from liquidation or creation of assets or increase/decrease of liabilities.
  • Expenditure is also divided into two
    • Plan Expenditure Consists of money going to annual plans of          the union              and              State  Governments
    • Non-Plan Expenditure It is the expenditure not falling under the annual plans. It has a small capital component whose largest chunk is on defence. Bothe plan and           non-plan expenditure are divided into revenue and capital account as usual

Stages in Budget Enactment

  • The Budget goes through the following six stages in the Parliament.
  • Presentation of the Budget on the floor of the House before the Lok sabha
  • General discussion on the Budget.
  • Vote of account
  • Scrutiny by departmentally related Standing
  • Voting on demands for Grants
  • Passing of Appropriation Bill (Article 114 of the Constitution of India).

 

 TYPES OF BUDGETING

Zero-Based Budgeting

  • It is a method of budgeting, in which all budgetary allocations are set to nil at the beginning   of a financial year

Gender Budgeting

  • It came into being in 2004-05. To contribute towards the women empowerment and removal of inequality based on gender, role of budgeting has been accepted through this step

Outcome Budget

  • An Outcome Budget measures the development outcomes of all government programmes. For instance, it will tell a citizen if money has been allocated for building a primary health centre has it indeed come up. In other words, it is a means to develop a linage between the money spend by a government and the results which follow.
  • Outcome budgeting in India was introduced by the Finance Minister P Chidambaram from Budget, 2005-06. It is based on the idea that financial outlays in the budget do not necessarily lead to outcomes, while the people of the country are concerned with the outcomes
  • -The first  such  mini-budget was presented by TT Krishnamachari on 30th November, 1956, in form of fresh taxation proposals through Finance Bills, demanded by the prevailing domestic and International Economic Situation.
  • John Mathai proposed the first Budget of Republic of India in 1950 and also the creation of Planning Commission
  • Finance Minister Morarji Desai has given Budget for the maximum number of times (10), followed by P Chidambaram, who has given 9 Budgets.
  • CD Deshmukh was the first Indian Governor of RBI to have presented the Interim Budget for the year 1951-52.
  • MS Indira Gandhi is the only woman to hold the post of the Finance Minister and to have presented the Budget in her capacity as the Prime Minister of India in 1978.

TYPES OF DEFICITS

  • Revenue Deficit It is the difference between the revenue receipt on tax and non-tax side and the revenue expenditure. Revenue expenditure is synonymous with consumption and non-development.
  • Fiscal Deficit It is the difference between what the government earns and its total expenditure.
  • Fiscal Deficit = Difference between country expenditure and earnings
  • Fiscal Deficit = Revenue Receipts (Net tax revenue +Non-tax revenue) + Capital Receipts (only recoveries of loans and other receipts)- Total expenditure (Plan and non-plan)
  • Budget Deficit It considers only the difference between the total budgeted receipt and the expenditure. It was abolished in 1997.
  • Monetised Deficit It is the borrowing made from the RBI, through printing                                 fresh It is resorted to, when government cannot   borrow from market.
  • Gross Fiscal Deficit The Gross Fiscal Deficit (GFD) of government is the excess of its total expenditure, current and capital, including loans net of recovery, over revenue receipts (including external grants) and non-debt capital- Gross Fiscal Deficit = Total Expenditure – (Revenue Receipts +Non-debt Creating Capital Receipts).
  • Net Fiscal Deficit The Net Fiscal Deficit is the gross fiscal deficit reduced by net lending by government.
  • Primary Deficit The Amount by which a Government’s total expenditure exceeds its total revenue, excluding interest payments on its Primary deficit = Fiscal deficit –Interest payments.
  • Gross Primary Deficit The Gross Primary Deficit is the Gross Fiscal Deficit less interest payment while the primary revenue deficit is the revenue deficit less interest Payments
YearRevenue DeficitFiscal DeficitPrimary DeficitRevenue Deficit as per cent of Fiscal Deficit
(As per cent of GDP)
Enactment of FRBM
2003-043.54.3079.7
2004-052.43.9062.3
2005-062.540.463
2006-071.93.3-0.256.3
2007-081.12.5-0.941.4
2008-094.562.675.2
2009-105.26.53.281
2010-113.24.81.867.5
2011-12 (BE)3.44.61.674.4
2011-12 (P)4.35.72.675.5
2012-13(BE)3.55.11.968.2

UPSC Previous Year Questions:

  1. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? (CSE 2015)
    1. It has increased the share of States in the central divisible pool from  32  percent to       42
    2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

  1. a) 1 only b) 2 only
  2. c) Both 1 and 2 d) Neither 1 nor 2

 

  1. The sales tax you pay while purchasing a  toothpaste  is  a   (CSE 2014)
  2. tax imposed by the Central Government
  3. tax imposed by the Central Government but collected by the State Government
  4. tax imposed by the State Government but collected by the Central Government
  5. tax imposed and collected by the State Government
  1. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? (CSE 2014)
  1. To enable the Central Bank to control the amount of advances the banks can create
  2. To make the people’s deposits

with banks safe and liquid

  1. To prevent the commercial banks from making excessive profits
  2. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below:

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. d) 1, 2, 3 and 4
  1. In India deficit financing is used for raising resources for? (CSE 2013)
  2. Economic development
  3. Redemption of public debt
  4. Adjusting the balance payments
  5. Reducing the foreign debt
  1. Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
    1. A design for the Goods and Services package linked to adherence to the proposed design.
    2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend
  1. Devolution of a specific share of central taxes to local bodies as grants

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
  1. Under which of the following circumstances may ‘capital gains ‘arise?
    1. when there is an increase in the sales of a product
    2. when there is a natural increase in the value of the property owned.
    3. when you purchase a painting and there is a growth in its value due to increase in its

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 2 only
  4. 1, 2 and 3
  1. Which one of the following is not a feature of ‘Value  Added  Tax’? (CSE 2011)
  2. It is a multi-point destination based system of taxation
  3. It is tax levied on value addition at each stage of transaction in the production-distribution chain
  4. It is a tax on the final consumption of goods or services

and must ultimately be borne by the consumer

  1. It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation.
  1. Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act,             2003? (CSE 2010)
  2. Elimination of revenue deficit by the end of the Fiscal year 2007- 2008.
  3. Non borrowing by the central government from Reserve Bank of India except under certain Circumstance.
  4. Elimination of Primary deficit by the end of the fiscal year 2008- 2009.
  5. Fixing government Guarantees in any financial year as a percentage of
  1. Consider the following actions by the Government: (CSE 2010)
    1. Cutting the tax rates
    2. Increasing the       government spending
    3. Abolishing the subsidies

In the context of economic recession, which of the above actions can be considered a part of the “fiscal stimulus” package?

  1. a) 1 and 2 only b) 2 only
  2. c) 1 and 3 only d) 1, 2 and 3
  1. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean? (CSE 2010)
  2. The commercial banks will have less money to
  3. The Reserve Bank of India will have less money to
  4. The Union Government will have less money to
  5. The commercial banks will have more money to
  1. In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years? (CSE 2010)
  2. Service tax
  3. Personal income tax
  4. Excise duty
  5. Corporation tax
  1. Consider the following statements: (CSE 2010)
    1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar
    2. Sugar and sugarcane are essential commodities under the Essential Commodities

Which of the statements given above is/are correct?

  1. a) 1 only b) 2 only
  2. c) Both 1 and 2 d) Neither 1 nor 2
  1. Consider the following (CSE 2009)
    1. Fringe Benefits tax
    2. Interest tax
    3. Securities transaction tax Which of the above is/are direct tax / taxes ?
    4. a) 1 only b) 1 and 2 only
    5. c) 2 and 3 only d) 1, 2 and 3
  1. A decrease in tax to GDP ratio of a country indicates which of the following?
    1. Slow in economic growth rate
    2. Less equitable    distribution    of national income

Select the correct answer using the code given below.

  1. a) 1 only b) 2 only
  2. c) Both 1 and 2 d) Neither 1 nor 2

ANSWERS:

1. (c) 2. (d) 3. (b) 4. (a) 5. (c) 6. (b) 7. (d)
8.(c) 9.(a) 10.(a) 11.(c) 12.(c) 13.(d) 14.(c)

 

PLANNING IN INDIA

3.1 MEANING OF ECONOMIC PLANNING

  • Economic planning refers to the path of actions in terms of policy measures to be followed in future, in pursuance of pre-determined objectives.

Planning Commission (now NITI Aayog) defines economic planning as the utilisation of country’s resources for developmental activities in accordance with national priorities. It is a consciously and judiciously carried out process for optimum utilisation of existing resources in order to fulfil some well defined objectives.

Objectives of Planning

  • The broad objectives to Five Years Plans in India are
    − A high rate of growth with a view to improve the standard of living.
    − Modernisation of economy in terms of adoption of new technologies and social outlook.

IMPORTANT DATES

  •  1934 – Sir M.Visvesvaraya in his book Planned Economy of India advocated the necessity of planning in the country much before independence.
  •  1944 – The Planning and Development Department was set up under the chairmanship of Sir Ardeshir Dalal.
  •  1946 – The Interim government set up the Planning Advisory Board.
  •  1947 – The Economic Programme Committee was set up under the chairmanship of Pandit Jawaharlal Nehru.
  •  1950 – The Planning Commission was set up after independence.
  •  1965 – The National Planning Council was established
  •  2015 – The NITI Aayog replaces the Planning Commission.

− Economic self-reliance, meaning avoiding import which can be produced in India.
− Equity implying equitable distribution of wealth with social justice.

− Economic stability which means controlling inflation and unemployment.

 

3.2 STRATEGIES OF PLANNING

1. Harrod Domar Strategy

  • The 1st Five Year Plan was based on this strategy. This strategy emphasised the role of capital accumulation’s dual character, which on the one hand, increases the national income (demand side role) and on the other hand, increases the production capacity (supply side role).
  • According to this growth model, the rate of economic growth in an economy is dependent on the level of savings and capital output ratio.
    Thus,
    Rate of growth (y) = Savings (s)/Capital output ratio (k)

Here, the capital output ratio, defined as change in capital divided by change in output measures the productivity of investment that takes place.

2. Nehru-Mahalanobis Strategy

  • This strategy was based on the two sector model, that is,consumer good sector and capital good sector. The strategy emphasised investment in heavy industry to achieve industrialisation for rapid economic development. It was based on the Russian experience.
  • The objective was to become self-reliant and overcome capital constraint. This strategy was adopted in the 2nd Five Year Plan and with minor modifications, up to the 5th Plan. It was a long-term strategy.

The Mahalanobist strategy called for larger role for public sector because of two reasons.
(i) Private Sector was not mature enough to undertake the responsibility.
(ii) It was feared that opening industries to private sectors could lead to concentration of wealth in private hands.

3. Gandhian Strategy

  • It was enunciated by Acharya Shriman Narayan Agarwal in his ‘Gandhian Plan’ in 1944. The basic objective of the Gandhian Model is to raise the material as well as cultural level of the masses so as to provide a basic standard of life.
  • It laid emphasis on scientific development of agriculture and rapid growth of cottage and village industries. Moreover, Gandhian Strategy emphasised on employment oriented planning rather than production oriented planning of Nehru.

4. LPG Strategy

  • Liberalisation, Privatisation and Globalisation (LPG) strategy of planning was introduced by the Finance Minister, Dr Manmohan Singh under Narasimha Rao Government.
  • The strategy ended the ‘’license-permit-raj’’ and opened the hitherto areas reserved for the public sector to private sector. It allowed for foreign direct investment and followed an export promotion policy to boost economic growth. In all, it changed the nature of planning from centralised to ‘’indicative’’, wherein planning was to play a facilitating role.
  • It is also referred to as planning by inducement as against imperative planning.

3.3 HISTORY OF PLANNING IN INDIA

  • First attempt to initiate economic planning in India was made by Sir M Visvesvarayya, a noted engineer and politician, in 1934, through his book, ‘Planned Economy for India’.
  • In 1938, National Planning Commission was set-up under the chairmanship of Jawaharlal Nehru by the Indian National Congress.
  • Its recommendations could not be implemented because of the beginning of the World War II and changes in the Indian political situation.
  •  It stated that the objective of planning was to ensure an adequate standard of living for the masses. It emphasised on heavy industry and land reforms.
  •  In 1944, Bombay Plan was presented by 8 leading industrialists of Bombay including JRD Tata, GD Birla and others. It saw future progress based on textile and consumer industries and saw an important role for the state in post independent India.
  • In 1944, ‘Gandhian Plan’ was given by Shriman Narayan Agarwal. It emphasised decentralisation, agricultural development, cottage industries etc.
  •  In 1945, People’s Plan was given by MN Roy.
  •  In 1950, Sarvodaya Plan was given by Jai Prakash Narayan. A few points of this plan were accepted by the government.

 

3.1     PLANNING COMMISSION

  • After independence in 1950, the Planning Commission was set-up under the chairmanship of Pt Jawaharlal Nehru. It was to formulate plans for the economic development of the country on the basis of the available physical, capital and human resources.
  • The Planning Commission is essentially a non-political and non-constitutional advisory body,               which               makes recommendations to the government. It was set-up through an executive order of the Union Government on 15th March, 1950.

National             Institution             for Transforming India (NITI Aayog) Introduction of NITI Aayog

  • NITI Aayog or National Institution for Transforming India Aayog is a policy ‘think- tank’ of government that replaces Planning Commission and aims to involve states in economic policy-making. It will be providing strategic and technical advice to the central and the State Governments. Prime Minister heads the Aayog as its Chairman.

New Structure under NITI Aayog

  • NITI Aayog will be headed by the Prime Minister and will have a Governing Council, comprising Chief Ministers of states and Heads of all Union Territories. The Governing Council replaces the earlier National Development Council.
  • In addition, there will also be a regional council comprising of Chief Ministers and Lieutenant Governors of Union Territories, which will be mandated to develop plans that are region specific.
  • The Aayog will have 7 or 8 full time members and two well- known and accomplished part- time members, drawn from leading research organisations and major universities. Four Union Ministers, nominated by the Prime Minister, will also be included in ex-officio capacity

  • On the PM’s invitation, specialists across domains, will be invited to share knowledge and add value to the Planning process, making extensive use of technology in developing sustainable plans             and programme implementation. The Prime Minister shall appoint a full time Chief Executive Officerwith a fixed tenure and may sanction a dedicated secretariat, if deemed necessary.

Vision and Objectives of NITI Aayog

  • Based on the belief that strong states make a strong Centre, NITI Aayog is structured to promote cooperative federalism. The new body will build mechanisms to include need- based planning at the village level and aggregate the needs at higher levels of government.
  • Policy planning will be long- term, with in-built mechanisms for course correction, based on emerging economic scenario. National security interests will be kept in focus, while formulating plans on economic and social development. Special focus will be on those sections of society that are at the risk of being left out of the development process.
  • The planning process must encourage innovation, knowledge and entrepreneurial thinking and include close interaction with all stakeholders and research bodies, both in India and overseas and seek suggestions and opinion for a more pro-active and relevant policy
  • Aiming to facilitate greater inter department and inter sector coordination and avoid bottlenecks in smoother policy implementation, the institution is to develop a knowledge-based repository of information and data, to enable all stakeholders to access the resource pool and help in developing best practices for sustainable and equitable development.
  • Technology upgradation and capacity building will be encouraged to promote efficient implementation of programme initiatives.

Appointment

  • The Prime Minister Narendra Modi appointed Indian- American economist Arvind Panagariya as the first Vice Chairman of the Niti Aayog an institution that came into being on 1st January and replaced the 65-year old Planning.
  • The Commission-along with six members and three special invitees Economist Bibek Debroy and former Defence Research and Development Organisation Chief VK Saraswat were appointed as full-time members by the Prime Minister, who was be the chairman of the body, according to a release issued on Monday. Union Ministers Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh will be ex-officio members while Nitin Gadkari, Smriti Irani and Thawar Chand Gehlot will be special invitees to the institution that aims to embark on a “Bharatiya approach to development” of transform India.

Members

The various members of NITI Aayog are

  • Chairman Prime Minister Narendra Modi
  • Vice Chairman Aravind Panagariya
  • Ex-Officio Members Rajnath Singh, Arun Jaitly, Suresh Prabhu and Radha Mohan Singh
  • Special Invitees Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot
  • Full-time Members Economist        Bibek Debroy, former DRDO chief K. Saraswat and Agriculture Expert Professor Ramesh Chand
  • Governing Council All State Chief Ministers and Lt Governors
  • CEO 1st  Sindhushree Khullar 2nd Amithab Kant (from 1st Jan 2016)

National     Development     Council (NDC)

  • The National Development Council (NDC) is neither a constitutional body nor a statutory body. Union Cabinet set-up NDC in 1952, through an executive order.
  • National Development Council (NDC) is mainly concerned with approval of Five Year Plans. The NDC is headed by the Prime Minister and consists of the Central Ministers, Chief Ministers of the State and Lt Governors, Administrators of Union Territories and Members of the Planning
  • The Secretary of the Planning Commission acts as the Secretary of the Council. From a strictly legal point of view, NDC is essentially an advisory body.

Functions of NDC

  • To review the working of plan from time-to-time and to recommend such measures as are necessary for achieving the aims and targets articulated in the National Planes
  • To review the social and economic policies affecting the development of the
  • To ensure maximum cooperation of people in the planning and improvement of administrative capacity.
  • To suggest programmes and schemes for the development of less developed and backward classes and
  • To assess resources required for implementing plans and to suggest ways and means for raising national regions
  • To prescribe guidelines for the formulation of National
  • To consider National Plans as formulated by Planning Commission and to approve the same.

FIVE YEAR PLANS IN INDIA

  • After independence, India launched a programme of Five Year Plans to make the optimum use of country’s available resources and to achieve rapid economic Development
  • In India, development plans were formulated and carried out within the framework of the mixed Economy
  • In India, economic planning was adopted in the form of Five Year Plans and was seen as a development tool on account of various reasons.
  • The need for social justice as experience of the past five and-a- half decades suggests that in a free enterprise economy, economic gains do not necessarily trickle down and
  • Judicious mobilisation and allocation of resources in the context of overall development programme in the light of the resource constraint in India
  • So far, 12th Five Year Plans have been formulated since the year 12th Five year Plan (2012- 2017), came into force once it was approved by the NDC on 27th December, 2012.

Formulation of Five Year Plans

  • The preparation of Five Year Plan starts with the formulation of an Approach Paper, outlining the macroeconomic dimensions, strategies and objectives of the plan.
  • The Approach Paper is prepared by the Planning Commission after intensive consultations with individuals and organisations of all the State Chief Ministers.
  • The Planning Commission then presents this Approach Paper to the National Development Council (NDC), for its consideration and approval. On approval by the NDC, the Approach Paper is circulated among the State Governments and the Central Ministers, based on, which they prepare their respective Five Year Plans.
  • Thus, based on the parameters postulated in the NDC approved Approach Paper, the Central Ministries and the states prepare their respective plans, with the help of a large number of Steering Committees/Working Groups. These are composed of representatives of the concerned ministries, selected State governments,          academicians, private sector, NGOs Based on the reports of these Steering Committees and Working Groups, the States and the Central Ministries come up with their proposals of detailed plans and programmes. The Planning Commission reviews these plans and programmes of the Central and State Plans and as a result, a detailed plan is evolved.
  • In recent years, Planning Commission has also started taking views of the general public into consideration during plan formulation by asking for their views.
  • In the light of above, the Five Year Plan document is prepared by the Planning Commission listing out the objectives and detailing out plan orientation, development perspective, macro economic / dimension, policy framework, financing and sectoral profiles. The Planning Commission then presents the final Plan document to the NDC for its consideration and approval.

Implementation of Five Year Plans

  • The five Year Plan is implemented through Annual Plans, which is a detailed description of the allocation of resources between centre and states and for different sectoral activities in the government
  • In particular, it involves allocation of budgetary resources and detailed consideration of public sector projects / programmes / The sanction of government expenditure is affected through Annual Budget, which is passed by the Parliament every year

 

12TH FIVE YEAR PLAN (2012-17)

    • The approach paper of the 12thFive Year Plan is concerned with the Faster, Sustainable and More Inclusive Growth. In it, the challenge of urbanization has been identified as one of the key focus area. In the opinion of Planning Commission, the economy has gained in strength in many dimensions and is therefore, well placed to achieve faster, sustainable and more inclusive growth. Having achieved 9% growth during the Eleventh Plan, it is reasonable to aim at 8.0% growth for the Twelfth Plan.
    • There are several imponderables, including considerable short- term uncertainties in the global economy and also formidable supply constraints in energy and some other sectors on the domestic front. While there are possible downsides to this scenario, we should aim at an average 8.2% GDP growth for the 12th Five Year Plan at this stage.
    • In the Eleventh Plan, the achieved growth rate was 9%. As compared to the initial target of 9% and the revised target of 8.0%. The total plan size of Twelfth Plan is Rs.37.7 lakh crore, 13.7% more than the Eleventh Plan.
    • At the energy front, Planning Commission acknowledged that energy strategy for the Twelfth Plan requires a large number of actions by different ministries in the Central Government plus action by State Governments in several areas.

Focus Areas

  • The Planning Commission, as approach paper indicates, is going to target these 14 areas : Energy, transport, natural resources, rural transformation, manufacturing sector, health education and skill development, social and regional equity, urbanization, science and technology, services: tourism hospitality and construction, governance and innovation

Targets Under 12th Plan Economic Growth

  • Real GDP Growth Rate of 0%. (A/c to April 2013)
  • Agriculture Growth Rate of 4.0%.
  • Manufacturing Growth   Rate  of 10.0%.
  • Every state must have a higher average growth rate in the 12thPlan than achieved in the 11th  Plan

Poverty and Employment

  • Head-count ratio of consumption poverty to be reduced by 10 percentage points over the preceding estimates by the end of 12th Five Year Plan
  • Generate 50 million new work opportunities in the non-farm sector and provide skill certification to equivalent numbers during the 12th Five Year Plan

Education

  • Mean years of schooling to increase to 7 years by the end of 12th Five Year
  • Enhance access to higher education by creating two million additional seats for each age cohort aligned to the skill needs of the Economy
  • Eliminate gender and social gap in school enrolment (that is, between girls and boys and between SCs, STs, Muslims and the rest of the population) by the end of 12th Five Year Plan

Health

  • Reduce IMR to 25 and MMR to 1 per 1000 livebirths and improve Child Sex Ratio (0-6 years), to 950 by the end of the 12th Five Year Reduce Total Fertility Rate to 1 by the end of 12th Five Year Plan.
  • Reduce under-nutrition among children aged 0-3 years to half of the NFHS-3 levels by the end of 12th Five Year Plan

Infrastructure, Including Rural Infrastructure

  • Increase investment            in infrastructure as a percentage of GDP to 9% by the end of 12th Five Year Plan
  • Increase the Gross lrrigated Area from 90 million hectare to 103 million hectare by the end of 12thFive Year Plan
  • Provide electricity to all villages and reduce transmission and distribution losses to 20% by the end of 12th Five Year Plan
  • Connect all villages with all weather roads by the end of 12thFive Year Plan
  • Upgrade national and state highways to the minimum two- lane standard by the end of 12thFive Year Plan
  • Complete Eastern and Western Dedicated Freight Corridors by the end of 12th Five Year plan
  • Increase rural density to 70% by the end of 12th Five Year Plan
  • Ensure 50% of rural population has access to 55 LPCD piped drinking water supply and 50% of Gram Panchayats, achieve the Nirmal Gram Status by the end of 12th Five Year Plan

Environment and Sustainability

  • Increase green        cover        (as measured by satellite imagery) by 1   million    hectare    every     year during the 12th Five Year Plan.
  • Add 2 x 30000 MW of renewable energy capacity in the 12th Plan
  • Reduce emission intensity of GDP in line with the target of 20% to 25% reduction by 2020 over 2005 Levels

Service Delivery

  • Provide access to banking services to 90% Indian households by the end of 12th Five Year
  • Major subsidies and welfare related beneficiary payments to be shifted to a direct cash transfer by the end of the 12th Plan, using the Aadhar platform with linked bank account

Alternative Scenarios During

12th Plan

  • To illustrate the consequences of inaction on key growth promoting policies, the Planning Commission has undertaken a systematic process of ‘scenario planning’ based on diverse news and disciplines to understand the interplay of the principal forces, internal and external, shaping India’s Progress ’
  • This analysis suggests three alternative scenarios of how India’s economy might develop titled, ‘Strong Inclusive Growth’, ‘Insufficient Action’ and ‘Policy Logjam’.

NATIONAL INCOME

National Income

  • It is the value of total goods & services produced in an economy over a given period of time.

National Income = C + I + G + (X – M)
Where,
C = Total Consumption
Expenditure
I = Total Investment Expenditure
G = Total Government
Expenditure
X = Export, M = Import

  • It can be measured by Gross National Product (GNP), Gross Domestic Product (GDP), Gross National Income (GNI). Net National Product (NNP), Net National Income (NNI) and Per-Capita Income (PCI).

1.1 NATIONAL INCOME AND ITS RELATED AGGREGATES

  • Various national income aggregates are estimated either at factor cost or at market price.

    Factor Cost

  • Factor cost refers to the cost of factors of production viz, rent of land, interest of capital, interest of capital wages for compensation of employees for labour and profit for entrepreneurship.

FC = MP – Indirect taxes + Subsidies

Market Price

  • Market Price is the price that customers actually pay. It includes the component of indirect taxes and of subsidies. Accordingly, when indirect taxes are deducted and subsides added to the market price, we get the value of national income at factor cost.

MP = FC + Indirect taxes – Subsidies

GDP (Gross Domestic Product)

  • It is the monetary value of all final goods and services produced in a country in a year.

GDP = C + I + G + NX
Where
C = Consumption
I = Investment
G = Government Expenditure
NX = Net Export

  • GDPMP = GNPMP – (X – M)
  • GDPFC = GNPFC – (X – M)

Where X is the export and M is
import of a country,

Nominal GDP

  • It is the market value of all final goods and services produced within the country.

Real GDP

  • It is a measurement of the value of the output economy adjusted for price changes.

GNP (Gross National Product)

  • It is the market value of all products and services produced in one year of a country (i.e., by labour and property).

GNP = GDP + X – M.

Net National Product (NNP)

  •  It is the value of GNP after deducting depreciation of plant and machinery.

NNP = GNP – Depreciation

National Income (NI) = NNP – Indirect Taxes + Subsidies

Per-Capita Income (PCI)

  • It is the average income (per person) of a country.

Per−Capita Income=National Income

Personal Income (PI)

  • It is the income of the residents (individuals) of a country. To calculate personal income, transfer payments to individuals are added to national income, while social security contributions, corporate tax and undistributed profits are subtracted.

Personal = National Income +
Income Transfer payments –
(Social security contributions
+Undistributed profits of Corporate)

Difference between GDP and GNP

  • In GDP, goods and services produced in a country are added, whether it is produced by residents of the country or foreigners.
  •  In GNP, the production of foreigners in the country is not included, while the production of nationals outside the country is included.

Disposable Income (DI)

  •  It is the income of individuals at their disposal after paying direct tax liabilities.

Disposable = Personal Income –
income Direct taxes (e.g., Income Tax)

Green Economy

This is the economy which deals with the environmental risks and ecological scarcity and also an economy that aims for sustainable development without degrading the environment.

Green GDP

  • It is the calculation of net natural consumption (i.e., resource depletion, environmental degradation, protective and restorative environmental initiatives).

1.2 METHODS OF CALCULATING NATIONAL INCOME

  • According to Simon Kuznets, National Income can be calculated by three methods.
    (i) Product Method In this method, net value of final goods and services produced in a country during a year is obtained, which is called final product.
    (ii) Income Method In this method, a total of net income earned by working people in different sector and commercial enterprises is obtained. By this method, NI is obtained by adding receipts as total rent, total wages, total interest and total profit.

(iii) Consumption Method It is also called expenditure method. Income is either spent on consumption or saving. Hence, NI is the addition of total consumption and total saving.

1.3 PROBLEMS IN CALCULATING NATIONAL INCOME

Black Money

  •  Illegal activities like smuggling and unreported income due to tax evasion and corruption are outside the GDP estimates. Thus, parallel economy poses a serious hurdle to accurate GDP estimates.

Non-Monetisation

In most of the rural economy considerable portion of transaction occurs informally and they are called as non-monetised economy. This keeps the GDP estimates at lower level than the actual.

Growing Service sector

  • Many Services like BPO, value addition in legal consultancy, health services, financial and business services and service sector as a whole is not based on accurate reporting and hence, national income is underestimated.

Double Counting

  • It is also a hurdle to accurately measure GDP estimates. Though, there are some corrective measures, but it is difficult to eliminate it.

1.4 NATIONAL INCOME ESTIMATIONS IN INDIA

  •  The first attempt to calculate national income of India was made by Dadabhai Naoroji in 1867 – 68, who estimated per capita income to be ₹ 20.
  • The first scientific method was made by Professor VKRV Rao in 1931-32, but was not very satisfactory.
  • The first official attempt was made by National Income Committee headed by Professor PC Mahalanobis in 1949.
  • According to the National Income Committee Report (1954), National Income of India was ₹ 8710 crore and Per Capita Income was ₹ 225 in 1948 – 49.
  • In India, Central Statistical Organisation (1949) now renamed as Central Statistical Office (CSO) has been formulating National Income.

Gross Fixed Capital Formation (GFCF)

  •  It refers to net additions of capital stock such as equipment, buildings and other intermediate goods. A nation uses capital stock in combination with labour to provide services and produce goods.
  • To grow at a faster rate, a nation needs high levels of capital formation, so that it can grow its aggregate income as well as per capital income. This is because higher levels of capital stock enable an economy to produce more goods and services.
  • To achieve a high level of capital formation, a nation should also achieve high levels of domestic savings (both households and firms), so that capital formation can be funded without relying on external debt.
  • In GFCF, the term gross signifies that adjustments due to depreciation of capital stock (e.g., machinery) are not made. When such an adjustment is made, it is called Net Fixed Capital Formation.
  • The term fixed signifies that only fixed capital is counted and financial assets, stocks of inventories etc are excluded.
  • GFCF also excludes land sales and purchases.

Incremental Capital Output Ratio (ICOR)

  •  ICOR is used to assess a country’s level of production efficiency. ICOR equals Annual Investment/Annual Increase in GDP. Higher levels of ICOR mean that capital is not being used efficiently to increase production. Generally, for most countries ICOR is around 3.

1.5 ORGANISATIONS IN INDIA RELATED TO NATIONAL INCOME ACCOUNTS
Central Statistical Organisation

  • Central Statistical Office (CSO), was set-up in 1949. It is one of the two wings of the National Statistical Organisation (NSO), along with National Sample Survey Office (NSSO), responsible for coordination of statistical activities in the country and for evolving and maintaining statistical standards
  • Its activities include compilation of national accounts, conduct of annual survey of industries and economic census, compilation of index of industrial production, as well as consumer price indices.
  •  It also deals with various social statistics, training, international cooperation, industrial classification etc.

National Sample Survey Office (NSSO)

  • NSSO was set-up in 1950, for conducting large scale sample surveys to meet the data needs of the country, for the estimation of national income and other aggregates.
  • It was recognised in 1970, by bringing together all aspects of survey work under a single agency known as NSSO.
  •  NSSO undertakes the fieldwork of Annual Survey of Industries in the whole country except Jammu and Kashmir.

UPSC PREVIOUS YEAR QUESTIONS

1. The national income of a country for a given period is equal to the __? (CSE 2013)
a) Total value of goods and services produced by the nationals
b) Sum of total consumption and investment expenditure
c) Sum of personal income of all individuals
d) Money value of final goods and services produced
2. In the context of Indian economy, consider the following statements. (CSE 2011)
1. The growth rate of GDP has steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) neither 1 nor 2

3. Which of the following pairs about India’s economic indicator and agricultural production (all in rounded figures) are correctly matched? (CSE 2008)
1. GDP per capital : Rs. 37,000 Current prices
2. Rice : 180 million tons
3. Wheat : 75 million tons
Select the correct answer using the code given below
a) 1, 2 and 3
b) 1 and 2 only
c) 2 and 3 only
d) 1 and 3 only
ANSWERS:
1. (d) 2. (a) 3. (d)

Service Sector


Services Sector of India

  • India’s services sectors has emerged as a prominent sector in terms of its contribution to national and states incomes, trade flows, FDI inflows and employment. This sector has been pulling up the growth of the Indian economy with a great amount of
  • The share of service sector in GDP has nearly doubled since independence.
  • Trade, hotels, restaurants contributes maximum share to GDP followed by finance, insurance real estate
  • Both these services showed perceptible improvement in their shares over the year. Community, social and personal services with a share of 0% is in 3rd place. Construction, a borderline services inclusion, is at fourth place with an 8.2 % share.

FDI in the Services Sector

  • The growth of the services sector is closely linked to the FDI inflows into the sector and the role of transnational firms. While the ambiguity in classifying the different activities under the services sector continues, the combined FDI share of financial and non financial services, telecommunications, computer hardware be taken as a rough estimate of the FDI share of services, though it could include some non – service

Share and Growth of India’s Services Sector (at factor cost)

 2000-012011-12*2012-13
Trade, Hotels and restaurants14.6 (5.2)18.0(6.2)25.1#(5.2)
Trade13.3 (5.0)16.6(6.5)
Hotels and restaurants1.3 (7.0)1.5(2.8)
Transport, storage and communication7.6 (9.2)7.1 (8.4)
Railways1.1 (4.1)0.7(7.5)
Transport by other means5.0(7.7)5.4 (8.6)
storage0.1 (6.1)0.1 (9.4)
Communication1.5 (25.0)0.9 (8.3)
Financing, Insurance, real estate and business services13.8 (4.5)16.6 (11.7)17.2(8.6)
Banking and Insurance5.4(-2.4)5.7(13.2)
Real estate, ownership of dwellings and business services8.7 (7.5)10.8 (10.3)
Community, social and personal services14.8 (4.6)14.0(6.0)14.3(8.6)
Public administration and defence6.6 (1.9)6.1(5.4)
Other services8.2 (7.0)7.9 (6.5)
Construction6.0(6.1)8.2 (5.6)8.2 (5.9)
Total service50.8 (5.4)55.7(8.2)56.5(6.6)
Total services (including construction)56.8(5.5)63.9 (7.9)64.8(6.5)
Total GDP100.0(4.3)100.0(6.2)100.0(5.0)
Some Major Services of India

  • The service which accounts for 60% of the GDP has grown 5% in financial year 2013. Some of the major services of India’s are

Tourism, Including Hotels and Restaurants

  • Tourism accounts for around 7% of global employment (direct and indirect) and 5% of global income as per the United Nationals World Tourism Organisation (UNWTO), Tourism Highlights 2012, Edition.
  • It is one of the largest generations of employment across the world and women account for 70% of the work force in the travel and tourism industry, Hence, it generates more inclusive growth than other sectors.
  • As per Tourism Satellite Account (TSA) data 2009-10, the contribution of tourism to India’s GDP was 8% (3.7% direct and 3.1% indirect) and its contribution to total employment generation was 10.2% (direct 4.4% and indirect 5.8%). As per the 12th Five Year Plan approach

paper, India’s travel and tourism sector is estimated to create 78 jobs per billion rupees of investment compared to 45 jobs per million rupees in the manufacturing sector.

  • Domestic tourism is also an important contributor to the growth of this sector. During 2011, there were 851 million domestic tourists, with the top five states, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra, cumulatively accounting for around 69% of the total domestic tourist visits in the country.
  • The hotels and restaurants sector with a 5 % share in India’s GDP in 2011 – 12, is also an important sub component of the tourism sector. There are also many new tourism product that hold significant potential for India like wellness tourism, got tourism and adventure tourism.

Some Transport – Related Services

  • Transport related services are as follows

Shipping

  • Shipping plays an important role in merchandise trade. The fortunes of the former depend on the growth of the latter and the prospects of the latter depend on the efficiency of the former. About 95% of India’s trade by volume and 68% in terms of value is transported by sea. As on 31st January 2013, India had a fleet strength of 1158 ships with GT of

10.45 million with the Public – Sector.

  • Shipping corporation of India having the largest share of 60%. Of this, 356 ships with

9.37 million GT cater to India’s overseas trade and the rest to coastal trade.

Port Services

  • Port services are closely connected to shipping services and merchandise trade. The performance of the latter two is also dependent on the efficiency of
  • In the first half of 2012 – 13(April

– September) traffic handled by Indian ports grew by 1.8% over

the corresponding period of the previous year, with the growth of non – major ports (10.3%) compensating for the decline in growth of major ports.

  • The Maritime Agenda 2010 -20, covers some of these issues like full mechanisation of cargo handling and movements, having draft of not less than 14 m in major ports and 17 m in hub ports and shifting of transshipment of Indian containers from foreign ports to Indian
  • The outlay for shipping sector in 12th Plan includes ` 6960 core as global budgetary scheme and

`21990 core as Internal and Extra Budgetary Resource (IEBR).

Real Estate Service and Housing

  • Real estate and dwellings has a share of 9 % in India’s GDP and a growth of 7.2 % in 2011 -12. The growth of the real estate services in Particular has been impressive consistently at over 25% since 2005 – 06 with 26.3% growth in 2011 -12.
  • Housing is a basic necessity for human life and in nearly 300 sub sectors such as manufacturing (Steel, Cement and Builders Hardware), transport, Electricity, Gas and Water Supply, Trade, Financial Services         and Construction, which contribute to capital formation income opportunities and generation of employment.
  • India’s housing and real estate sector faces many challenges. While India is among the top countries in terms of housing and workspace needs. It ranks 182nd in construction permission processes according to the world Bank’s Doing Business 2013, report.

Some Business Services

  • Business services include services like computer related services, research and development, accounting services and legal services and renting of machinery in order of importance (shares) as per India’s National
  • The state of business services in India’s GDP, has risen over the

years   and   these   are   also   the dynamic       services       with       a combined  growth  rate  of  13.5  % in 2011 -12. They grew at around 20%  during   2005-06,  2005  -07

and 2008-09, but growth decelerated in the next 2 years due to the global economic situation.

IT and ITeS

  • India’s IT and ITeS Services with exponential growth are a unique export- led success story, which has put India on the global map. While India has achieved a brand identity in this sector, other developing countries are trying to emulate India’s
  • It is also a provider of skilled employment both in India and abroad, generating direct employment for near 8 million person and indirect employment of around 8.9 million in 2011-12.
  • The IT – ITeS industry has four major sub components. IT service, Business process outsourcing (BPO). Engineering services and R & D and Software products.
  • The 12th Five Year Plan aims to harness the potential of the software and services sector to contribute to the country’s development and growth, particularly in terms of investment, exports, employment generation and contribution to GDP and to retain India’s leadership position as a global IT

– BPO destination, consolidate and grow in both mature and emerging markets.

  • The government has also announced the National Policy on Information Technology 2012, which aims to maximally leverage the power of ICT to help address the economic and developmental challenges the country
  • Under the               National e-Governance Plan (NeGP), the government focuses on making critical public services available electronically and promoting rural

Current Scenario

  • India’s dynamic services sector has grown rapidly in the last decade with as much as 4 %

of the growth in India’s GDP in 2014-2015 coming from this sector. Unlike other developing economies, the Indian growth story has been led by services sector growth which is now in double digits.

Service Sector

  • The service sector covers a wide array of activities ranging from services provided by the most sophisticated sectors like telecommunications, satellite mapping and computer software to simple services like those performed by the barber, the carpenter and the plumber highly capital – intensive activities like tourism, real estate and housing infrastructure – related activities like railway, roadways and ports to social sector related activities like health and education.
  • The national            accounts classification of the services sector incorporated trades, hotels and restaurants; transport,     storage                      and communication                             financing,

insurance, real estate and business   services          and community, social and personal services.

Share of Services in Income and Employment

  • While the share of services in employment for many developed countries is very high and in many cases higher than the share of services in income, the gap between these shares is relatively less in developing countries. Except China and India, all the other BRICS countries also have a similar pattern.
  • In the Indian and Chinese cases, there is a wide gap between the two, with gap being wider for India. China’s share of services in both income and employment is relatively low due to the domination of the industrial sector, but the gap is also narrower than that of
  • For instance, share of services in overall GDP(at factor cost at 2004-05 prices) rose from 7% in 1990 – 91 to 57.2% in 2009 –

10      How      ever,      share      in employment          of          services increased   from   24.4%   to   just 25.3%

  • This is unlike the experience of other countries where services provide a business services which accounted for 13% of GDP in 2000 employed only 10.2% if the labour force.

UPSC Previous Year Question:

  1. Consider the following:
    1. Hotels and restaurants
    2. Motor Transport undertakings
    3. Newspaper Establishments
    4. Private Medical Institutions

The Employers of which of the above can have the “Social Security coverage under Employees State Insurance Scheme? (CSE 2012)

  1. 1, 2 and 3 only
  2. 4 only
  3. 1, 3 and 4 only
  4. d) 1, 2, 3 and 4

Ans: (d)

External Sector


10.1 BALANCE OF PAYMENTS (BoP)

  • Bop is the overall record of all economic transaction of a country in a given period, with rest of the

Structure of Balance of Payments

  • Balance of Payments (BoP) account broadly comprises of the following components

Current account

  • Current account of Balance of payments consists of all transactions relating to goods, services and income, it is functionally classified into merchandise and
  • Current account deficit is the situation where payments on the country are more than the payments into the country. in current account surplus, there is a net inward payment into the country on the current

Capital Account

  • Capital account is that account which records all such transactions between residents of a country and rest of the world, which causes a charges in the asset or liability status of the residents of a country or its government. Investments (FDI and FII) and borrowings (ECB) are part of the capital account.

Components of capital account

  • Following are the principle forms of capital account transactions
  • Foreign investment it has two sub – components which are as follows
  1. Foreign direct investment (FDI) : referring to the purchase of assets in the rest of the world, which allow control over that assets. e.g : purchase of a firm by TATA in the rest of the
  2. Portfolio investment referring to purchase of an asset in the rest of the world, without any control over that asset. Portfolio investment into India also consists of foreign institutional investment (FII)

e.g : purchase of some shares of a company by TATA in the rest of the world.

  • Loans it has two sub components which are as follows
  1. Commercial borrowings referring to borrowing by a country                                                (including government and the private sector), from the international money market. This involves market rate of interest without considerations of any concession.
  2. Borrowings as external assistance: referring to borrowing by a country with considerations of assistance. It involves lower rate of interest compared to that prevailing in the open
  • Banking Capital Transactions: referring to transactions of external financial assets and liabilities of commercial banks and cooperative banks operating as authorised dealers in foreign exchange. These transactions include NRI
  • Reserve Account: The official reserve account records the changes in stock of reserve assets (also

known as foreign exchange reserves at the country’s monetary authority.

  • Net errors and omissions: This is the last components of the balance of payments and principally exists to correct any possible errors made in accounting for the three other accounts. They are often referred to as balancing
  • All capital transactions causing flow of foreign exchange into the country are recorded as positive items in the capital account of BoP.
  • While FDI and portfolio investments are non debt creating capital transactions, borrowings are debt – creating

BoP Trends

  • India had faced pressure on balance of payments (BoP), since planning period due to either internal or external

Period I (1956-57 to 1975-76)

  • The period comprising the 2nd, 3rd and 4th plans and first 2 years of 5th plan saw heavy deficit in balance of payments (BoP) and extremely tight payment
  • This period witnessed three wars, several and the first oil shock in 1973, though the government

resorted to serve import controls and foreign exchange regulation etc.

Period II (1976-77 to 1979-80)

  • This was relatively short period and was a golden periods as far as BoP is concerned. In this period, India had a small current account surplus of 6% of the GDP and also possessed foreign exchange reserves equivalent to about seven months imports.

and was marked by severe BoP difficulties

  • The reasons for severe difficulties are as follows
    • Widening trade deficits
    • Gradual decline in net receipts from invisibles.
    • Reductions in flows of concessional assistance to India principally from World Bank Group

Devaluation of Currency

Devaluation refers to reducing the value of the Indian rupee in comparison to the US dollar  in  the  world  market.  In  1947,  India  became  a  member  of  the  IMF  which necessitated fixing the exchange value of the Indian rupee as per the IMF standards. As a result, India was obliged to devalue the rupee. So far, the following devaluations have taken place. The first devaluation took place in June 1949, when the Indian rupee was devalued  by  30.5  percent.  Dr  John  Mathai  was  the  Finance  Minister.  In  the  second devaluation  in  June  1966,  the  Indian  rupee  was  further  devalued  by  57  percent. Sachindra  Chaudhury  was  the  Finance  Minister.  In  the  third  devaluation  on  1  July 1991, the Indian rupee was devalued by 9 percent and devalued for the fourth time by 11 percent on 3 July 1991, bringing the total devaluation to 20 percent. This was during the tenure of Dr.Manmohan Singh as the Finance Minister. This devaluation brought an appreciable increase in Indian exports. Since 20 August 1994, the rupee has been made a freely convertible currency on current account.

Period III (1980-81 to 1990-91)

  • This period broadly corresponds to the period 6th and 7th plans
  • The third    oil     shock     during

1990-91

  • During 1990s, domestic political developments affected confidence abroad in Indian economy etc.
  • Substantial outflow of deposits held by NRIS
  • Reserves declined to a low of

$0.9 billion in January 1991.

Period IV (1991-92 onwards)

  • The reforms of 1990’s have facilitated India to move away from closed economy framework towards a more open liberal economy.
  • Foreign exchange reserves were built to very comfortable positions and that difficulties of BoP came under control and the reasons for the same are as follows.
  • Trade balance has always been in deficit since imports have always exceeded exports
  • When current account deficits are larger than capital account surpluses, foreign exchange reserves are also used to cover these

Reasons for Deficit in India’s Balance of Payments (BoP)

The important reasons for deficit in India’s BoP Position can be citied as follows

  • Irreversible Trade Deficit: Our imperative imports of oil and coal and India’s passion for
  • Rise in imports: The reasons for rapid rise in imports are building industrial base (in the early stages) increase in export related imports (gems, jewellery, capital goods) increase in imports of Petroleum, Oil and Lubricants (POL) products etc.
  • Devaluation and depreciation of the Rupee : The devaluation and depreciation of the rupee have led to an increase in the price of imports. Exports have become cheaper, the low price and income elasticises of demand for experts have resulted in slow increase in exports.
  • Slow Rise in Export Earnings : Exports earnings rose, however, they were not sufficient enough to meet the rising imports. Thus, rise in exports has neither been substantial nor continuous. The growth in exports has not been

sufficient enough to finance the rising imports.

  • Debt service : The Balance of Payments (BoP) problem has also aggravated due to the rising obligation of amortising payments in 2011-12, debt service ratio was 6% with the ever increasing imports and slow pace of exports, the most effective solution for India’s Balance of Payments (BoP) problem is cost reduction and competitiveness in global
  • Appreciation : The recent appreciation of the rupee has made exports costlier and imports cheaper. This may also add to the Balance of Payments (BoP) problem.

10.2     FOREIGN CAPITAL

  • Foreign capital inflow to the country can be either in the form of concessional assistance or non

– concessional flow.

  • Non – concessional flows include mainly external commercial borrowings (ECBs), loans on market terms, NRI deposits and foreign investment. Foreign investment can be categorised into Foreign direct investment (FDI) and Foreign Institutional Investment (FII)

Foreign Direct Investment (FDI)

  • It refers to direct investment in the productive capacities of a country by someone from outside the country. Such an investment can be in the form of setting up a new plant or through purchase of shares of a company, where the shareholding gives the foreign entity control over the business of the
  • A foreign company can set – up its business in India in two ways, by setting up a company under the Companies Act or by setting up an unincorporated entity like liaison office, project office or branch

Sector which are open to FDI

  • Most sectors are at least partially open to FDI, subject to a cap and specific conditions. There are two entry routes for FDI in India. In sectors where FDI is allowed up to 100%, FDI enters under the automatic route, subject to sect oral regulation and other
  • In this instance, no approval is required from the Reserve Bank of India (RBI) or the government however, the investment must be notified to the RBI’s regional office within FDI is capped, prior approval from the Foreign Investment Promotion Board (FIPB) is required, FIPB recommendation must be cleared by the Ministry of Finance for FDI proposals below or equivalent to `12 billion and by the Cabinet Committee of Economic Affairs for FDI proposals of `12 billion or

Tabular Representation of the Key Changes Proposed under the FDI Limits

Sector / Activity% of FDI/ EquityEntry Route
Defence sector49%FIPB route
Telecom Service100%Automatic up to 49% / government route beyond 49% and up to 100%
Tea Plantation100%Automatic up to 49% / government beyond 49% and up to 100%
Asset Reconstruction Company100%Automatic up to 49 % / government beyond 49% and up to 100%
Petroleum and Natural Gas49%Automatic Route
Commodity Exchanges49%Automatic Route
Power Exchanges49%Automatic Route
Stock Exchanges/Clearing Corporations49%Automatic Route
Credit information Companies74%Automatic Route
Courier Services100%Automatic Route
Single Brand Product Retail Trading100%Automatic up to 49 % / government route beyond 49 % and up to 100 %
Insurance Sector49%FIPB route (The CCEA on 24th December, 2014, 49 % FDI in insurance)

Functions of FIPB

The main functions of the board will be as follows:

  1. To ensure expeditious clearance of the proposals for foreign investment;
  2. To review periodically the implementation of the proposals cleared by the board;
  3. To review, on a continuous basis, the general and sectoral policy regimes relating to FDI and in consultation with the administrative ministries and other concerned agencies, evolve a set of transparent guidelines for facilitating foreign investmentin various sectors;
  4. To undertake investment promotion activities including the establishment of contract with and inviting selected international companies to invest in India in appropriate
  5. To interact with the industry association/bodies and other concerned government and non-government agencies on relevant issues to facilitate increased inflow of FDI;
  6. To identify sectors into which investment may be sought, keeping in view the national priorities and also the specific regions of the world from which investment may be invited through special efforts;
  7. To interact with the Foreign Investment Promotion Council (FIPC) being constituted separately in the Ministry of Industry;
  8. To undertake all other activities for promoting and facilitating FDI, as considered necessary from time to
  9. The board will submit its recommendations to the government for suitable action.

Procedures of FIPB

FIPB should meet an a fixed day every week to ensure quick disposal of cases and may have more frequent meetings whenever considered necessary.

  • Foreign investment proposals received by the board’s secretariat should be put to the board within 15 days of receipt and the administrative ministries must offer their comments either before and / or  in  the  meeting of the
  • It should be the endeavour of FIPB to ensure that, as far as possible, the government’s decisions on FDI proposal are communicated to the applicant within six
  • The board shall have the flexibility of purposeful negotiation with investors and consider project-proposals in totality, free from parameters, to ensure maximum FDI into the
  • It would function as a transparent, effective and investor-friendly single window, providing clearance for foreign investment
  • The board will lay down its own mode and working procedures keeping in view the requirements of each proposal considered by

Foreign Institutional Investment

  • A foreign institutional investor is one which is registered in a country outside of the one in which it is investing. In India, it is used to refer to companies which invest in the country’s financial markets.
  • In 2013, India accepted the internationally, laid down definition of FII to remove the ambiguity between FII and

Now, when an investor has a stake of less than 10% in a company, it will be treated as FII and where and investor has a stake of more than 10 %, it will be treated as FDI.

  • FIIs may invest in securities in both the primary and secondary market and in shares, debentures and warrants of listed or unlisted companies.
  • Some of the entities eligible to be treated as FII in India are, pension funds. Mutual funds, banks, investments trusts, sovereign wealth funds, Foreign Central Bank
  • FIIs can invest in securities in the primary and secondary markets dated governments securities, commercial paper, derivatives, units of schemes floated by domestic mutual fund (including UTI), Indian depository receipts and security

Foreign Direct Investment(FDI) VS Foreign Institutional Investor (FII)

Investments made in India by a foreign investor can either be FDI or FII. Both look the same but are in reality quite different. FDI is an investment that a parent company makes in a foreign country; it is concerned with the secondary market. On the contrary, FII is an investment made by an investor in the markets of a foreign nation and as such concerned with primary markets.

Means of FII Investment

  • FIIs can invest through a registered broker on recognised India stock exchanges. They can purchase shares/ convertible debentures either though private placement or through offer for sale.
  • FIIs can also invest through a sub – account ( a person outside India on whose behalf investments are proposed to be made)
  • FIIs can also issue off shore Derivative Instruments (ODIs) to persons who are regulatory by an appropriate foreign regulatory authority and after compliance with KYC
  • Large amount of FII investment into India comes through participatory

Participatory Notes (p – Notes)

  • These are financial instruments used by investors or hedge funds that are not registered with the securities and exchange board of India to invest in India securities.
  • Indian – based brokerages buy India based securities and then issue participatory notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the

Qualified foreign Investor (QFI)

  • QFI is a person who full fills the following criteria
  • Resident in a country or group which is a member of Financial Action Task Force (FATF)
  • Resident in a country that is signatory to IOSCO’s MoU or a signatory of a bilateral MoU with
  • Such person should not be resident in India or registered with SEBI as an FII or a sub account of
  • QFIs are distinct from FIIs and non – resident Indians. They are allowed to invest directly into mutual funds and stocks of Indian
  • It was felt that foreign investors had been kept at bay owing to concerns relating to money laundering and due

diligence by the government and regulators.

  • For this reason, the new scheme of QFI was started to ensure more foreign capital inflows, reduce market volatility and deepen the markets.

Global Depository Receipts (GDRs)

  • These are equity instruments issued in international markets like London, Luxemburg etc. Indian companies use GDRs to raise capital from abroad. GDRs designated in dollars, Euros

American Depository Receipts (ADRs)

  • These are equity instruments issued to American retail and institutional investors. They are listed in New York, either on Nasdaq or New York Stock Exchange.

Indian Depository Receipts (IDRs)

  • These are similar to ADR / GDR. They are used by non – Indian companies in the Indian stock markets for issuing equity to Indian

FDI Vs FII

  • FDI inflows are preferred over FII inflows for the following reasons
  • FDI is considered to be long – term and stable investment whereas FII is considered as hot money. i.e. it can move out quickly during advise circumstances leading to instability and volatility  in  the exchange rate and the stock
    • Since, FDI represents ownership, it leads to the inflow of better technology management practices etc while FII is generally only interested in short term gains.
    • While the above arguments are true to a certain extent, FII’s have also been influencing the incorporation of            better technology and management in the companies where they hold shares.

10.3     FOREIGN EXCHANGE

  • Foreign exchanges reserves are an important component of the BoP and essential element in the

analysis of an economy’s external position.

  • India’s foreign exchange reverse comprise Foreign Currency Assets (FCAs), gold, special drawing (SDRs) and Reverse Tranche Position (RTP) in the International Monetary Fund (IMF)

Exchange Rate

  • Exchange rate is the rate, at which Indian rupee will be exchanged other international currencies, say US dollar, in the foreign exchange market.
  • The rupee was historically linked to the British pound sterling till 1 After independence, India had to fix and maintain the external value of the rupee in term of gold or the US dollars as required under IMF rules. Therefore, India fixed the value of rupee at `3.30 per US dollar. This was the official rate of exchange and RBI would buy and sell foreign currencies at this rate.
  • The 1994-95, budget announced full convertibility of the rupee on current account i.e. freedom to

buy or sell foreign exchange in connection with the current account transaction under article VIII of the IMF.

NEER and REER

  • The nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) includes are used as indicators of external competitiveness of the country over a period of
  • NEER is the weighted average of bilateral nominal exchange rate of the home currency in terms of foreign currencies, while REEP is defined as a weighted average of nominal exchanges rate, adjusted for home and foreign country relative price
  • Nominal rupee depreciation, while having some adverse effects such as greater imported inflation, is also useful over time in offsetting higher domestic inflation and ensuring Indian exports remain
  • REEP capture movements in cross currency exchange rates as well as inflation differentials between India and its major trading partner and reflects the

degree                 of                 external competitiveness of Indian products.

  • The RBI has been constructing 6 currency (US dollar, euro for euro zone, pound sterling, Japanese Yen, Chinese Rimini and Hong Kong dollar) and 36 currency indices of NEER and

Present Exchange Rate Policy

  • India has transited from fixed exchange rate policy to a market determined exchange rate. It is broadly a floating rate regime with the central intervening only for reducing excess volatility, preventing the emergence of destabilising speculative activities, a maintaining adequate           reserves       and developing on orderly foreign exchange
  • At present, the exchange rate policy is guided by the broad principles of careful monitoring and management of exchange rates with flexibility, when allowing the underlying demand and supply conditions to determine exchanges rate

movements over a period in an orderly manner.

Policy Options with RBI to Manage Exchange Rate

  • Using Policy Rates RBI can use policy rates (repo, CRR, SLR etc) to manage the exchange rate. By lowering interest rates, supply of rupee’s increased in the market leading to depreciation of the currency. Increasing interest rates on the other hand, takes out rupee from the system leading to shortage of rupee supply and thus, appreciation of the
  • Using Forex Reserves RBI can sell forex reserves and buy Indian rupees leading to demand for rupee. Based on weekly reserves data, RBI seems to be selling forex reserves selectively to support rupee. Its intervention has been limited as liquidity in money markets has remained tight and further intervention only tightens liquidity
  • Easing Capital Controls Capital controls be eased to allow more capital inflows. “Resisting currency depreciation is best done by increasing the supply of

foreign currency by expanding market participation” This in essence, has been RBI’s response to depreciating rupee.

  • FERA (Foreign Exchange Regulation Act) in place since 1947 did not succeed in restricting activities such as the expansion of Trans National Corporations (TNCs). After the amendment of FERA in 1993 it was decided that the act would become the FEMA. (foreign exchange Management Act)
  • This was done in order to relax the controls on foreign exchange in India, as a result of economic liberalisation FEMA served to make transactions for external trade (exports and imports) easier. Involving current account for external trade no longer required RBI’s
  • The deals in foreign exchange were to be managed instead of regulated. The switch to FEMA shows the change on the part of the government in terms of foreign

Main Features of FEMA

  • Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign security is restricted. It is FEMA that gives, the Central Government the power to impose the
  • Restrictions are imposed on people living in India, who carry out transactions in foreign exchange or foreign security and payments from outside the country to India the transactions should be by an authorised
  • Deals in foreign exchange under the current account by an authorised person can be restricted by the central government, based on public interest.
  • Although, selling of drawing of foreign exchange is done through an authorised person, the RBI is empowered by this act to support the capital transactions to a number of restriction.

Convertibility of Rupee

Convertibility of a currency is the ease. With which it can be converted into any other foreign currency. Current account convertibility refers to freedom in respect of exports and imports, which has already been achieved to a large extent in India. Capital account convertibility refers to freedom in respect of investment and borrowing within India (by outsiders) and outside India (by those inside India).

  • People living in India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad, if the currency, security or property was owned or acquired, when he

/ she was living outside India or when it was inherited to him / her by someone living outside India.

  • Exports are needed to furnish their export details to RBI. To ensure that the transaction are

carried out properly, RBI may ask the exports to comply to its necessary requirements.

10.4          CAPITAL ACCOUNT CONVERTIBILITY IN INDIA

  • Capital account convertibility (CAC) for Indian economy refers to the abolition of all limitations with respect to the movement of capital from India to different countries across the globe. According to the Tarapore Committee, Capital Account Convertibility refers to the freedom to convert local financial assets into foreign financial assets and vice – versa at market determined rates of
  • It is associated with changes of ownership in foreign / domestic financial assets and liabilities and embodies the creation and liquidation of claim on or by the rest of the

Fiscal consolidation

  • Reduction in Gross Fiscal Deficit to GDP ratio to 5%
  • A consolidated Sinking Fund (CSF), to be set – up to meet government’s debt repayment

needs to be financed by increase in RBI’s profit transfer to the government and is investment proceeds.

Mandated inflation Rate

  • The mandated inflation rate should remain at an average 5% for the year period

Consolidation in the Financial Sector

  • Gross Non performing Assets (NPAs), of the banking sector (as a percentage of total advances). To be brought down to 5%
  • A reduction in the average effective cash reserve ratio (CRR) for the banking system to 3%

10.5     INDIA’S EXTERNAL DEBT

  • India’s external debt has increased over time and India is one of the highly indebted countries of the world in terms of total debt
  • Gross external debt is defined, at a point of time, as not contingent liabilities that required payments of principal and interest by the debtor at same points in the future and that are owed to non

residents by residents of an economy.

  • India’s external debt stock at end March, 2012 stood at US $ 4 billion recording an increase of US $ 39.5 billion (12.9%) over end march 2011 level of US $

305.9 billion (1365929 crore). The rise in external debt is largely due to higher NRI deposits, short term debt and commercial borrowings.

  • The maturity profile of India’s external debt indicates the dominance of long term borrowings. Long term external debt accounted for 9 % of the total external debt, while the remaining 23.1% was short term debt.

Concepts of External Debt Sovereign (Government) and Non Sovereign      (Non –                          Government) Debt

  • Sovereign debt includes
    • External debt outstanding an account of loans received by government of India, under the external assistance programme and civilian component of rupee
  • Other government debt comprising borrowing from IMF, defence debt component of rupee debt as well as foreign currency defence debt and FII in government
  • Non sovereign includes
    • the remaining components of external debt. All other debt is non sovereign

External commercial borrowing (ECBs)

  • The definition of commercial borrowing includes loans from commercial  banks,                                                         other commercial financial institutions, money raised through issue of securitised instruments like bonds including India development Bonds(IDBs) and Resurgent India Bonds (RIBs) floating rate notes (FRN) etc.
  • It also includes borrowings through buyer’s credit and supplier credit mechanism of the concerned countries international finance corporation, Washington (IFC (W), Nordic investment bank and private sector borrowings from Asian Development Bank (ADB)
  • During good times, domestic borrower could enjoy triple benefits of
    • Lower interest rates – longer maturity and
    • Capital gains due to domestic currency appreciation. This would happen, when the local currency is appreciating due to surge in capital flows and the debt service liability is falling in domestic currency terms. The opposite would happen, when the domestic currency is depreciating due to reversal of capital flows during crisis situations, as happened during the 2008, global
  • A sharp depreciation in local currency would            mean corresponding increase in debt service liability, as more domestic currency would be required to buy same amount of foreign exchange for debt service
  • This would lead to erosion in profit margin and have market to market implications for the corporate. There would also be debt overhang problem, as the volume of debt would rise in local currency
  • Together, these could create corporate distress, especially because the rupee tends to depreciate precisely, when the India economy is also under stress and corporate revenues and margins are under

Decisions on ECB Norms Relaxation at a Glance

  • Automatic approval limit increased to $750 million from $ 500 million
  • $30 billion over ceiling can be increased later, if
  • Refinancing of rupee loans allowed through ECB.
  • ECB can be raised in Chinese currency Renminbi
  • Refinance of buyer’s / supplier’s credit permitted through ECB
  • Interest during construction under ECB permitted
  • Allowed availing of ECB denominated in rupee
  • High net worth individuals can invest in infra debt
  • Inclusion of infra finance companies as eligible issues for FII’s debt limit
  • Tax exemption on interest on withholding tax to be taken up with revenue

NRI Deposits

  • Non-Resident Indian (NRI), deposits are of three types
  • Non-Resident (External) Rupee Account (NRE Account) Deposits were introduced in 1970. Any NRI can open an NRE account with funds remitted to India through a bank abroad. The amount held in these deposits together with the interest accrued can be repatriated.
  • Foreign Currency Non- Resident (Banks) [Deposits (FCNR-B)] were introduced with effect from 15th May, 1993. These are term deposits maintained only pound sterling, US dollar, Japanese Yen, Euro, Canadian dollar and Australian dollar. The minimum maturity period of these deposits was raised from 6 months to 1 year effective October, 1999. From 26th July, 2005, banks have been allowed to accept FCNR

(B) deposits up to a maximum maturity period of 5 years against the earlier maximum limit of 3 years.

  • Non-Resident Ordinary Rupee (NRO) Accounts Any person, resident outside India may open and maintain NRO account with an authorised dealer or in authorised bank for the purpose of putting through bonafide transactions denominated in Indian rupee. NRO Accounts may be opened/maintained in the form of current, saving, recurring or fixed deposits. NRI/Persons of Indian Origin (PIO), may remit an amount not exceeding USD 1 million per financial year, out of the balances held in NRO Accounts.

10.6     INDIA’S FOREIGN TRADE

  • Foreign trade plays a significant role in the economy of each country. Foreign trade helps a country to utilise its natural resources and to export its surplus production. It can import technical know-how.
  • A country can industrialise itself by importing necessary capital, machines and raw materials from more advanced    and

industrialised nations. By proper control of foreign trade, employment, output, prices, industrialisation and economic development of the country can be influenced favourably.

Trade Composition

Export Composition

  • Noticeable compositional changes have taken place in India’s export basket between 2000-01 and 2013-14 with the share of petroleum, crude and products increasing by nearly five times to 1%, catapulted by its 33.5% growth (CAGR). While there has been a small fall in share of primary products, there was a 15.1% point fall in share of manufactured goods.
  • Among the four major items under manufactured goods, the shares of gems and jewellery and textiles (including RMG) fell, with the fall in the latter to 7% being more than half. Two major manufactured goods items, engineering goods and chemicals and related products, gained in shares, due to their nearly 20% CAGR. The fall in export shares of

manufactured goods between 2000-01 and 2013-14, is mainly on account of the fall in export shares of these items to a major destination like the USA.

  • Among these items, the shares of exports of textiles and gems and jewellery to the US fell while those of chemicals and related items and engineering goods
  • In the case of the EU, the shares of textiles, engineering goods and chemicals and related products increased while those of gems and jewellery and leather declined. In the case of China, the shares of textiles and engineering goods increased and that of chemicals and related products decreased. Thus, not only has there been a composition change, there has also been a directional change in India’s
  • The recent sectoral performance of exports shows while many sectors were in the negative growth zone in 2012-13, in 2013- 14, except gems and jewellery and electronic goods all other major sectors have moved to positive growth territory. In the first 2

months of 2014-15 (P), there was further improvement in the performance of engineering goods (21.7%)       petroleum      products

(14.0%), marine products (40.1%)

and textiles (13.2%).

Import Composition

  • Import growth decelerated sharply from 3% in 2011-12 to 0.3% in 2012-13 and fell to a negative – 8.3% in 2013-14, owing to fall in non-oil imports by 12.8%. Among the major items of import, the value of Petroleum, Oil and Lubricants (POL), which constituted 36.7% of total imports in 2013-14 grew marginally by 0.7%.
  • The other major item of import is gold, the import of which declined from 1078 tonnes in 2011-12 to 1037 tonnes in 2012-13 and further to 664 tonnes in 2013-14, on the back of several measures taken by government. In value terms, gold and silver imports fell by 1% to US $33.4 billion in 2013-14. Capital goods is the other major import category.
  • As in 2012-13, capital goods imports had negative growth in

2013-14 also of -14.7%, which is a cause for concern. Within capital goods, import growth of machinery except electrical and machine tools and transport equipment fell by more than 10% in 2013-14. However, the quantum of capital goods imports has actually increased in 2012-13 as indicated earlier.

Export Promotion

  • The main thrust of India’s Foreign Trade Policy has been to promote exportable goods and produce importable goods in the country to meet the domestic demand for foreign goods. A brief account of these major policy thrust are as
  • Export promotion refers to policies and measures of the government designed to encourage exports with a view to improving forex reserves and correcting the BoP deficit. The significance of           export promotion (as a strategy to combat BoP deficit), has come into greater focus after imports have been liberalised in

accordance with the emerging trend towards globalisation.

  • The government is trying to encourage exports through various kinds of cash incentives, subsidies as well as concessions.

10.7     MEASURES FOR EXPORT Promotion

  • Several committees have been appointed to offer suggestions for the promotion of exports, vi Gorewala Committee 1950, De Souza Committee 1957, import and export policy committee 1962, Alexander committee 1979. Tondon Committee 1980, Abid Hussian Committee 1984 and Rangarajan Committee 1991.
  • It is on the recommendation of these committees that several steps have been initiated for the promotion of

Export processing zone

  • A free trade Zone (FTZ) or export processing zone (EPZ), also called foreign – trade zone, formerly free port, is an area within which goods may be landed, handled manufactured

or reconfigured and re – exported without the intervention of the customs authorities.

  • Only when the goods are move to consumers with in the country in the country in which zone is located do they become subject to the prevailing customs
  • Free – trade zone are organised around major seaports, international airports and national frontiers – areas with many geographic advantages for trade, it is a region where group of countries has agreed to reduce or eliminate trade
  • Free trade zones can be defined as labour            intensive manufacturing centres that involve the import of raw materials or components and the export of factory

Special Economic Zone (SEZ)

  • Asia’s first export processing zone (EPZ) was set up in Kandla, India in 1965
  • The first SEZ policy was announced in April 2000 which inter – alia provided for to make SEZ an engine of growth supported by quality

infrastructure backed up by attractive fiscal package.

  • To import stability to the SEZ regime, SEZ act, 2005 was enacted and which came into effect from 10th February 2006.
  • As per the provisions of the SEZ act, 2005 100% FDI is allowed in SEZs through the automatic route.
  • Incentives the act offers a highly attractive fiscal incentive package which
  • Exemption from custom duties, central excise duties, service tax, central sales and securities transaction tax to both the developers and the
  • Tax holidays for 15 years (currently the units enjoy a 7 years tax holiday) 100% tax exemption for 5 years, 50% for the next 5 years and 50% for the ploughed back export profits for the next 5
  • 100% income tax exemption for 10 years in a block period of 15 years for SEZ

Infrastructure provisions have been made for

  • The establishment of free trade and warehousing zone to create world class trade – related infrastructure to facilitate import and export of goods aimed at making India a global trading hub.
  • The setting up of off shore banking units and units in an international Financial Service Centre in SEZs
  • The public private participation in infrastructure
  • The setting up of SEZ authority in each central government SEZ for developing new infrastructure and strengthening the exiting one.

General Agreement on Tariffs and Trade

  • The general agreement of Tariffs and Trade (GATT) was a multilateral agreement regulation international trade. According to its preamble, its purpose was the substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a

reciprocal and mutually advantageous basis.

  • It was negotiated during the United Nations Conference of Trade and Employment and was the outcome of the failure of negotiating government to create the International                 Trade Organisation (ITO)
  • GATT was signed in 1947 and lasted until 1994, when it was replaced by the world trade organisation in 1995. The original GATT text (GATT 1947) is still in effect under the WTO frame work, subject to the modification of GATT 19

GATT and the World Trade Organisation

  • In 1993, the GATT was updated (GATT 1994) to include new obligations upon its signatories. One of the most significant changes was the creation of the world trade organisation (WTO)
  • The 75 existing GATT members and the European Communities become the founding members of the WTO on 1st January, 1995.
  • The other GATT members rejoined the WTO in the following 2 years (the last being Gongo in 1997) since the founding of the WTO, 21 new non – GATT members have joined and 29 are currently negotiating membership.
  • There are a total of 157 member countries in the WTO, with Russia and Vanuatu being new members as of 2012 of the original GATT members, Syria and the SFR Yugoslavia have not rejoined the

UPSC Previous Year Questions:

  1. The problem of international liquidity is related to the non- availability of (CSE 2015)
    1. goods and services
    2. gold and silver
    3. dollars and other hard currencies
    4. exportable surplus
  1. Convertibility of rupee implies (CSE 2015)
    1. Being able to convert rupee notes into gold
  1. Allowing the value of rupee to  be fixed by          market forces
  2. freely permitting              the conversion of rupee to        other currencies and vice versa
  3. Developing an      international market for          currencies in India
  1. With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account? (CSE 2014)
  2. Balance of trade
  3. Foreign assets
  4. Balance of invisibles
  5. Special Drawing Rights Select the correct answer using the code given below:
  6. 1 only
  7. 2 and 3
  8. 1 and 3
  9. 1, 2 and 4
  1. Which one of the following groups of items is included in India’s Foreign Exchange    Reserves? (CSE 2013)
    1. Foreign-currency assets, Special Drawing Rights (SDRs)           and loans from foreign                           countries
  1. Foreign-currency assets, gold holdings of the RBI and SDRs
  2. Foreign currency assets, loans from the World  Bank  and  SDRs
  3. Foreign currency assets, gold holdings ·of the RBI and loans from the World Bank
  1. Which of the following constitute capital account? (CSE 2013)
  2. Foreign loans
  3. Foreign direct investment
  4. Private remittances
  5. Portfolio investment

Select the correct answer using the codes given below.

  1. 1, 2 and 3
  2. 1, 2 and 4
  3. 2, 3 and 4
  4. 1, 3 and 4
  1. Which of the following would include Foreign Direct Investment on India? (CSE 2012)
  2. Subsidiaries of            foreign companies in India
  3. Majority foreign equity holding in Indian companies
  4. Companies exclusively financed by foreign companies
  1. Portfolio investment

Select the correct answer using the codes given below:

  1. a) 1, 2, 3 and 4
    1. 2 and 4 only
    2. 1 and 3 only
    3. 1, 2 and 3 only
  1. The price of any currency in international market is decided by the (CSE 2012)
  2. World Bank
  3. Demand for goods/services provided by the country concerned
  4. Stability of the government of the concerned country
  5. Economic potential of the country in

Select the correct answer using the codes given below:

  1. a) 1,2 ,3 and 4
  2. 2 and 3 only
  3. 3 and 4 only
  4. 1 and 4 only
  1. Consider the following actions which the Government can take. (CSE 2011)
  2. Devaluing the domestic currency.
  1. Reduction in the export
  2. Adopting suitable policies which attract greater FDI and more funds from

Which is the above action/actions can help in reducing the current account deficit?

  1. a) 1 and 2 b) 2 and 3
  2. c) 3 only d) 1 and 3
  1. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? (CSE 2011)
    1. FII helps bring better management skills and technology, while FDI only brings in capital
    2. FII helps in increasing capital availability in general, while FDI only targets specific sectors
    3. FDI flows only into the secondary market, while FII targets primary market
    4. FII is considered to be more stable than FDI
  1. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently? (CSE 2010)
    1. United Nations     Environment Programme
    2. World Trade Organization
    3. ASEAN –    India    Free    Trade Agreement
    4. G – 20 Summits
  1. The SEZ Act, 2005, which came into effect in February 2006 has certain objectives. In this Context, consider the following: (CSE 2010)
  2. Development of    infrastructure
  3. Promotion of investment from foreign
  4. Promotion of exports of services only.

Which     of     the     above     are     the objectives of this Act?

  1. a) 1 and 2 only b) 3 only

c ) 2 and 3 only               d) 1, 2 and 3

  1. A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economics like UK and France. Why? (CSE 2010)
    1. India has preference for certain countries as regards receiving FDI.
    2. India has doubled taxation avoidance agreement with Mauritius.
    3. Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest
    4. Impending dangers of global climate change prompt Mauritius to make huge investment in

ANSWERS:

1. (a) 2. (c) 3. (c) 4. (b) 5. (b) 6.(d) 7.(b)
8.(d) 9.(b) 10.(b) 11.(a) 12.(b)

Industry

8.1 DEFINITION OF INDUSTRY

  • Industry refers to an economic activity concerned with the processing of raw materials and manufacture of goods in factories. Industries are often classified based on their principal product e.g., steel industry, automobile industry, textile industry etc.
  • The products of industries can be consumer goods (goods, which are finally consumed by consumers) like textiles, cosmetics etc or producer goods (goods used by manufacturers for producing some other goods) like machinery, tools, equipment

Importance of Industry

  • The industrial sector of the economy is important for many reasons for a country like
    • Rapid growth of national income is possible only through industrialisation as growth in agriculture is limited by factors including

natural     factors.     Industrial Growth   in   Eight   Five   Year Plan  was  7.29%,  in  9th   Plan 4.29%,    in    10th                             Plan (2002 – 07), 9.17% and in 11th

Plan (approx) 10%.

  • Industries can be provide better quality and more employment than the agriculture sector. The share of industry in total employment increased from 2% in 1999-2000 to 21.9% in 2009-10.
  • Value addition in the industrial sector can earn more foreign exchange than simply exporting raw materials.
  • The industrial sector provides goods for the development of basic infrastructure of the country like power, telecom etc, which then provides the basis for the growth of other sectors like agriculture and services.
  • National security requires that products for defence and other strategic sectors be produced within the country itself so as to guard against adverse eventualities like sanctions, wars etc.

8.2 INDUSTRIAL POLICY

  • An industrial policy provides guidelines for the effective co- ordination of the activities of various sectors of the economy. The evolution of industrial policy in India may be studies in the background to see, how far it has worked as a potent tool to realise the goal of planned
  • When India achieved independence in 1947, the national consensus was in favour of rapid industrialisation of the economy, which was seen not only as the key to economic development, but also to economic
  • In the subsequent years, India’s

Industrial Policy evolved through

successive Industrial Policy Resolutions and Industrial Policy Statements. Specific priorities for industrial development were also laid down in the successive Five Year Plans.

Industrial Policy Resolution (IPR), 1948

  • The 1st Industrial Policy was announced in April, 1948, by then Industrial Minister, Late SP Mukherjee. Its historic importance lies in the fact that it ushered in the system of ‘Mixed Economy’ in the country i.e., it entrusted the task of industrial development on both private and public

Salient Features of IPR 1948

  • Development of mixed
  • State programmes, for the development of
  • Promotion of small scale and cottage
  • Foreign investment was allowed, but effective control should be with
  • Industries Classified into four categories
  • Public Sector
  • Mixed Sector
  • Controlled Private Sector
  • Private and Cooperative Sector

Industrial Policy Resolution, 1956

  • IPR, 1956 was the most comprehensive industrial policy, which was formulated in the backdrop of the adoption of the Constitution and the socio- economic
  • The policy may be described as the ‘Economic Constitution’ of India, as it not only outlined the basic framework of the future industrial policies (especially upto 1991), but also of the general economic
  • Its main objectives were to accelerate the rate of economic growth and to speed up industrialisation for achieving a socialistic pattern of

Public sector steel plants

LocationAssistance
Rourkela(Orrisa)Germany
Bhilai(MP)Russian government
Durgair(WB)British government
Bokaro(Jharkhand)Soviet (1964)
Burnpur(WB)Acquired from private sector in 1976
Vishakhapatnam (AP)Russian government
Salem (Tamil-
Nadu)
Vijai Nagar(Karnataka)
Bhadrawati (Karnataka)nationalisation of Vishveshvarayya Iron and Steel Ltd(owned by Central and State government)

Salient Features (IPR 1956)

  • The policy divided the industries into three categories
  • Schedule A (Public    Sector) Seventeen   industries   were

exclusively reserved for the public sector.

  • Schedule B (Mixed Sector) Twelve industries were placed in the mixed sector of public and private enterprise. These were to be progressively state- owned and in which state would generally set up new units.
  • Schedule C (Private Sector) All the remaining industries and their future development would, in general be left to the initiative and enterprise of the private
    • The policy laid emphasis on the state assuming a predominant role for setting up new industrial undertakings.
    • The state was to facilitate and encourage the development of industries in the private
    • The state would support small- scale and cottage industries
    • The policy stressed the necessity of reducing regional
    • The policy welcomed the foreign capital, but the effective control should remain in Indian

Industrial Licensing

  • The Industries (Development and Regulation) Act, 1951, empowered the government to issue licenses for the setting up of new industries, expansion of existing ones and for diversification of
  • The main aims of the industrial licensing policy were the production as per national priorities, checking    the concentration of industries and ensuring balanced regional development.
  • However, from time to time, many deficiencies in the licensing system came to light. The government set-up several committees for the study of the licensing system and giving suggestions for its
  • Such committees included RK Hazari Committee, 1964 and Dr Subimal Dutt Committee, 1967. On the basis of Subimal Dutt Committee recommendation, government enacted the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.

Monopolies and Restrictive Trade Practices (MRTP) Act, 1969

  • MRTP Act was enacted in 1969 and MRTP Commission was constituted in 1970, to prevent the concentration of economic power and to prohibit restrictive or unfair trade
  • Under the act, companies having assets beyond the threshold limit (i.e., 20 crores in 1985) were placed under the purview of the act.
  • Certain restrictions are imposed on such companies like prior approval of the MRTP. Commission for establishment of new undertakings, expansion of undertakings, mergers and acquisitions.

Industrial Policy Statement, 1977

  • The thrust of the policy was on decentralisation of the industries and the promotion of small scale and cottage
  • It introduced the concept of tiny sector within the small-scale sector.

Annual Survey of Industries (ASI)

Data on registered manufacturing and repairing units are collected through the ASI and on unregistered manufacturing and repairing units, through the Follow-up Surveys of the Economic Census. For selection of units in ASI, the lists of factories maintained by the Chief Inspectors of Factories are used as the sampling frame. On the other hand, the Follow up Enterprise Surveys (FuS), which adopt a stratified two or three- stage sampling design, with villages and urban blocks as the first-stage units (FSUs) and unregistered manufacturing and repairing units as the ultimate stage sampling units, generally use the list of villages and the blocks with information on the number of enterprises and workers as per the Economic Census as the sampling frame for the selection of FSUs. Collection of data from the units in the ASI is record based. But in the Follow-up Enterprise Surveys, data are generally collected by interviewing the respondent, as most units do not maintain any books of accounts.

Industrial Policy Statement, 1980

  • The policy emphasised the optimum utilisation of installed capacity, technological upgradation and
  • The policy selectively liberalised the industrial sector i.e., MRTP Act was liberalised, scope of licensing was reduced, simplified the procedure for regularisation of unauthorised excess capacity etc.

An Evaluation of Industrial Policy Before 1991

  • Several official committees as well as other experts bring to light the major deficiencies of the industrial policies before 1991. Some of the important criticism are
  • The objective of the licensing policy was to ensure capacity creation according to the priorities decided in the Five Year Plan. But, due to inherent demerits of the licensing system, in some areas excess capacity was created and there was under utilisation of capacity, while at same time, despite availability of

licenses, private players deliberately under produced goods, which helped develop monopoly and monopolistic conditions in the economy.

  • Targets were not fixed for private sectors and they invested only assured profit and avoided
  • The objective of licensing policy was to check monopoly in the economy, but it infact led to development of monopoly in the economy. Big industrial houses succeeded in getting the licenses, while others
  • Due to licensing policy, developed states gained, more units were set-up in already developed states, while poor and under developed states
  • Rigidity and complex nature of licensing caused delay in permission and there was problem of delay in projects, which slowed down the growth rate.

8.3    NEW INDUSTRIAL POLICY (NIP), 1991

  • The Government of India announced the New Industrial

Policy on July 24, 1991. The main objective of this policy is to unshackle the Indian industrial economy from administrative and legal controls.

Main Features of NIP, 1991

  • Delicensing: The industrial licensing was abolished

irrespective of the level of investment, except for 18 specified industries like defence, atomic energy etc. Since then most of these industries were delicensed and now only three industries fall under the purview of industrial licensing.

  • Foreign Investment: Foreign capital investment limit was raised from 40% to 51% in high technology and high investment priority
  • Foreign Technology: Automatic approval was granted for    foreign         technology agreements upto the limit of Rs.200 crore subject to 5% royalty on domestic sales and 8% on
  • Foreign Investment Promotion Board (FIPB): It was established to expeditiously clear foreign investment proposals. It serves as a single window clearing agency for the FDI
  • Industrial Location Policy: Excepting the big cities with population of one million, in other cities, industrial licensing

will not be required, but for those industries, where licensing is compulsory.

  • In case of cities with population of one million or above, excepting non-pollutant industries, all other units will be set-up at a distance of 25 km from the city limits.
  • MRTP Limit Scrapped: The threshold limit of Rs.100 crore worth of assets for classification of a company as MRTP company was removed, such companies were to be recognised on case-by- case evaluation
  • Mandatory Convertibility Clause was Abolished It is the condition imposed by the financial institutions on private companies that a part of their lending would be converted into equity at some future
  • New Small Enterprise Policy: A separate policy was announced by the government in August, 1991, for the promotion of small- scale
  • Like the private enterprises, sick PSUs were also placed under the purview of the Board for

Industrial   and  Financial Reconstruction (BIFR).

  • Disinvestment of the shares of PSUs was

Competition Act, 2002

  • The Competition Act was enacted by the government in 2002, on the recommendation of the SVS Raghavan Committee. It repealed the MRTP Act and the MRTP Commission was replaced by the Competition Commission of India (CCI).
  • The objectives of the act are to encourage competition, prevent abuse of dominance (rather than dominance as such) and to ensure a level playing field for all the enterprises in the Indian economy.

Competition Act, 2013

  • This Act introduces significant changes in the provisions related to governance, e-management, compliance and enforcement, disclosure norms, auditors and mergers and acquisition. Also, new concepts such as one-person company, small companies,

dormant company, class action suits, registered valuers and corporate social responsibility have been included. The changes in the Act, 2013 has far reaching implications that are set to significantly change the manner, in which corporates operate in India. The Act, 2013 has introduced several new concepts and has also tried to streamline many of the requirements by introducing new definitions.

Index of Industrial Production (IIP)

  • One Person Company The Act, 2013 introduces a new type of entity to the existing list i.e., apart from forming a public or private limited company, the Act, 2013 enables the formation of a new entity a ‘One Person Company’ (OPC).
  • Small Company A small company has been defined as a company, other than a public company.
    • Paid-up share capital of which

The Central Statistical Organization (CSO) is responsible for the compilation and publication  of  the  Index  of  Industrial  production  (IIP)  since  1950.  The  IIP  is compiled as a simple weighted arithmetic mean of production relatives by using Laspeyre’s formula. The IIp is a quantum index, the production of items being expressed in physical terms. The eight core sectors in the index which account for combined weight of around 37 per cent to 90 per cent are cement, coal, crude oil,  natural  gas,  electricity,  petroleum  refinery  products,  fertilizer  and  steel. However,  the  unit  of  reporting  with  respect  to  certain  items  like  machinery, machine tools, ship building and so on is in value terms. The monthly figure of production  value  in  such  cases  is  first  deflated  by  the  Wholesale  Price  Index (WPI)  of  the  corresponding  categories,  released  by  the  Office  of  the  Economic Adviser,  Ministry  of  Industry.  The  scope  of  the  IIP  as  recommended  by  the United   Nations   Statistical   Office   (UNSO)   includes   mining,   manufacturing, construction, electricity, gas and water supply. But because of the constraints of data  availability,  the  IIP  compiled  in  India  has  excluded  construction,  gas  and water supply sectors.

does not exceed 50 lakh INR.

  • Turnover of which as per its last profit and loss account does not exceed 2 INR or such higher amount as may be prescribed which shall not be more than 20 crore INR.
  • Dormant Company The Act, 2013 states that a company can be classified as dormant when it is formed and registered under this Act, 2013 for a future project or to hold an asset or intellectual property and has no significant accounting
  • National Financial Reporting Authority (NFRA) The Act, 2013 requires the Constitution of NFRA, which has been bestowed with significant powers not only in issuing the authoritative pronouncements, but also in regulating the audit
  • Serious Fraud Investigation Office (SFIO) The Act, 2013 has bestowed legal status to
  • Corporate Social Responsibility The Act, 2013 makes an effort to introduce the culture of Corporate Social Responsibility (CSR) In Indian

corporates    by    requiring companies to formulate a corporate social responsibility policy and atleast incur a given minimum expenditure on social activities.

8.4 PUBLIC SECTOR

  • At the time of independence, the country was predominantly agrarian and lacked basic industries and infrastructure facilities. The economy needed a big
  • The push could not come from the Indian private sector, which was starved of funds and lacked technical and managerial abilities. Further, it was incapable of taking risk involved in long gestation investments. So, the development in the public sector became imperative.

The expansion of public sector in the field of industries took place in a big way with the launching of the Second Plan (1956-61), which gave top priority to the industrial growth of the country.

Expansion of Public Sector

  • There were only five Central Public Sector Enterprises (CPSEs) in 1951, with investment of Rs.29 The number of CPSEs (excluding financial institutions) has increased to 244 by 31st March, 2007.
  • There were over 800 state level public enterprises with total investment in public sector in the entire country (i.e., Centre + States) stood at over Rs.6 lakh crore.

Contribution of Public Sector

  • The public sector was instrumental in the creation of infrastructure and the development of basic industrial structure of the
  • PSUs did a commendable job in the promotion of strategic and key industries like atomic energy, armaments and ammunition, aircrafts, heavy machinery, iron and steel, coal, drugs, fertilizers, etc.
  • The public sector provided employment to about 70% of the workers employed in the organised sector. Presently, public sector contributes about 24% to the GDP and accounts for over 20% of the Gross Domestic Capital Formation (investment).
  • The contribution of PSUs has been significant in achieving self- reliance in foreign exchange. On one hand, several PSUs like State Trading Corporation (STC) and Metals and Minerals Trading Corporation (MMTC) played an important role in export promotion and on the other, some PSUs like Bharat Heavy

Electricals Limited (BHEL), Hindustan Antibiotics Limited (HAL), ONGC, etc played a crucial role in import substitution.

Problems of the Public Sector

  • The return on capital invested in PSUs has been deplorably low due to low profitability and losses of some
  • Problems related with the Price Policy i.e., Administered Prices of the products of PSUs were deliberately kept lower than the market
  • Lack of autonomy to the management of the PSUs due to excessive political
  • Excessive overheads especially in providing housing and other amenities to the employees e.g., townships.
  • Over staffing inflated the wage bills.
  • Inappropriate investment decisions like inappropriate location, technology, product mix

etc.

  • Indiscriminate expansion of the public sector in almost all
  • In case of public sector, the yardstick of profitability cannot be used to judge the performance. The public sector has been entrusted with multiple responsibilities including social, political, economic etc. Even, while making losses, the public sector might be serving certain important social

Public Sector Reforms

  • To improve the performance of the PSUs, the government has adopted the following measures, especially in the post reform (1991 onwards)
  • Memorandum of Understanding: The concept of  Memorandum                                               of Understanding (MoU) was introduced in 1987, on the recommendation of the ‘Committee to Review the Policy for the Public Enterprises’ headed by Mr Arjyn
  • MoU refers to the agreement between the concerned ministry and the management of a PSU,

in which the latter is provided a reasonable degree of autonomy and simultaneously held accountable for the performance of the PSU.

  • New Industrial Policy, 1991: The policy contained the following reformative measures for    PSUs, dereservation, disinvestment, professionalisation      of management, reference of sick PSUs to the BIFR and expanding the scope of
  • Voluntary Retirement Scheme (VRS): The VRS (or Golden Handshake Scheme) was launched in 1988, for the rationalisation of manpower in the central PSUs. The scheme enabled the PSUs to shed their excess staff by offering attractive compensation package to the workers, who seek voluntary retirement.
  • Dismantling of Administered   Price Mechanism (APM): The government has initiated steps for dismantling of price controls in respect of a number of

products of PSUs. e.g., it removed the price and distribution controls on iron, steel and cement. The government also decontrolled the prices of most of the fertilizers and petro-products.

Policy of Navratnas

  • Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997, as its most prestigious, which allowed them greater autonomy to compete in the global

Criteria for Navratna Status for PSUs

  • It should have a schedule ‘A’ and

Miniratna category_1 status.

  • It should have atleast three ‘excellent’ or ‘very good’ Memorandum of Understanding (MoU) ratings during the last five
  • It should have a composite score of 60 out of 100 marks based on its performance during the last three years on these six criterias-

Net Profit to Net worth, manpower cost to cost of production or services, gross margin as capital employed, gross profit as turnover, earnings per share, inter-sectoral comparison based on net profit to net worth.

  • The company should also have four independent directors on its board.
  • Navratna status empowers the PSUs to invest up to Rs.1000 crore or 15% of their net worth on a single project without seeking government approval. The overall ceiling on such investments in all projects put together is 30% of the net worth of the

Policy of Miniratnas

  • The government has also accorded the status of Miniratna to some profit making PSEs. There are two types of Miniratnas-Category I and Category II.

Category-I Miniratna

  • These are companies, which have made a profit in each of last three years and earned a profit of Rs.30 crore in atleast one of the three years.
  • They are allowed to incur capital expenditure without government approval upto Rs.500 crore or equal to their net worth whichever is lower. There are 52 Miniratnas of this category at present

Category-II Miniratna

  • These are companies, which have made profits for the last three years continuously and have a positive net worth. They can incur capital expenditure upto Rs.300 crores or 50% of their net worth whichever is
  • There are presently 16 such category-II

The Maharatnas

  • Maharatna Scheme was introduced for Central Public Sector Enterprises (CPSEs), with effect from May 19, 2010, in order to empower mega CPSEs to

expand their operations and emerge as global giants.

  • The objective of the scheme is to delegate enhanced powers to the boards of identified large-sized Navrantna CPSEs, so as to facilitate expansion of their operations, both in domestic as well as global
  • CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status
  • Having Navratna status
  • Listed on the Indian stock exchange, with a minimum prescribed public shareholding under SEBI regulations.
  • An average annual turnover of more than ₹ 25000 crore during the last three
  • An average annual net worth of more than ₹ 15000 crore during the last three
  • An average annual net profit after tax of more than ₹ 5000 crore during the last three years.

– Significant global presence or international operations.

  • Then coveted status empowers the boards of these firms to take investment decisions up to

₹ 5000 crore as against the present ₹ 1000 crore limit for Navrantnas without seeking government approval.

  • The Maharatna firms would now be free to decide on investments up to 15% of their net worth in a project, limited to on absolute ceiling of ₹ 5000

List of Maharatna and Navratna CPSEs

Maharatna CPSEs

  • Oil and Natural Gas Corporation Limited (ONGC)
  • Indian Oil Corporation Limited (IOCL)
  • Steel Authority of India Limited (SAIL)
  • National Thermal Power Corporation Limited (NTPC)
  • Coal India Limited (CIL)
  • Bharat Heavy Electricals Limited (BHEL)
  • Gas Authority of India Limited (GAIL)

Navratna CPSEs

  • Bharat Electronics Limited
  • Bharat Petroleum Corporation Limited
  • Hindustan Aeronautics Limited
  • Hindustan Petroleum Corporation Limited
  • Mahanagar Telephone Nigam Limited
  • National Aluminium Company Limited
  • NMDC Limited
  • Oil India Limited
  • Power Finance   Corporation Limited
  • Power Grid Corporation of India Limited
  • Container Corporation of India Limited
  • Engineers India Limited
  • National Buildings Construction Corporation Limited
  • Rashtriya Ispat Nigam Limited
  • Rural Electrification Corporation Limited
  • Shipping Corporation    of    India Limited
  • Navyeli Lignite   Corporation Limited

Disinvestment

  • The New Industrial Polilcy, 1991, envisaged disinvestment of a part of government shareholdings in selected PSUs as an important element of public sector reforms. In pursuit of this, the process of disinvestment began in 1991-92, with the sale of minority stakes in some
  • The primary aim of disinvestment in this phase was to raise non-inflationary finance to plug budgetary deficit. But, the focus of disinvestment shifted to strategic sale since 1999, in which substantial chunk of government equity is sold to private sector enterprises with an objective to improve the performance of the PSUs and to reorient public investment.

Objectives of Disinvestment

  • To transfer the resources from non-strategic sector to the strategic sector, which is much higher on social priority such as basic health, family welfare, primary education
  • To raise funds to cover up the

fiscal deficit of the government.

  • To improve efficiency of the public sector by inducing private initiative and
  • To enhance accountability of the PSUs by exposing them to the capital
  • To reduce political interference by imparting market orientation to the
  • Bring down government equity in all non-strategic PSUs to 26% or lower, if
  • Restructure and    revive potentially viable
  • Close down PSUs, which cannot be revived.
  • Fully protect the interest of workers.

Disinvestment vs Privatisation

Disinvestment refers to selling of equity of a PSU to a private organisation or to general public. Privatisation refers to providing for larger role for private capital and enterprise in the functioning of an economy. Privatisation is a wider term than disinvestment. Disinvestment is one of the means for achieving privatisation.

Privatisation may result from any of the following

  • Disinvestment
  • Denationalisation (i.e., complete sell off of a PSU)
  • Transfer of management and control of a PSU to the private sector
  • Dereservation of areas reserved for the public sector

The Disinvestment Process

  • In 1992, government constituted a committee on the disinvestment of shares in PSE’s headed by Dr
  1. Rangarajan to recommend on the policy of disinvestment. The committee recommended that upto 49% equity of the PSUs under the exclusive participation of the state could be disinvested but for rest of the industries disinvestment can be allowed upto 74%.
  • Further, the government constituted a five member Disinvestment Comission, under the chairmanship of Shri GV Ramakrishnan in August, 1996, to draw up a comprehensive

policy for the long term disinvestment programme.

  • The commission was mandated to advise the government on the extent, methodology, strategy and timing of
  • In May, 2004, the government adopted National Common Minimum Programme, which outlined the policy of the government with respect to the public sector as follows
  • In general, profit making

PSU’s will not be privatised.

  • In case of privatisation of profitable PSU’s government will retain at least 51% of the equity and the management control of the
  • Navratna PSUs will be retained under the public sector.
  • Chronically, loss-making companies will be either sold- off or closed, after all workers get their legitimate dues and compensation.
  • All privatisations will be considered on a transparent and consultative case-by-case basis.
  • A Board for Reconstruction of Public Sector Enterprises (BRPSE) to be
  • A National Investment Fund will be
  • On 25th Novemember, 2005, the government decided, in principle, to list large, profitable CPSEs on domestic stock exchanges and to selectively sell small portions of equity in listed, profitable CPSEs (other than Navratnas).

Present Disinvestment Policy

  • Budget 2011-12, announced the present policy on disinvestment. This included
    • Government not to bring its stake below 51%. That is government will retain the managerial control; and
    • Government will resort to IPO route as it will give the government                  access mechanism to retain control, public ownership and flexibility   in   further
  • Budget 2013-14, has targeted to raise ₹ 40000 crore through disinvestment in the fiscal year 2013-14.

National Investment Fund

  • In pursuance of the policy laid down in NCMP, the Central Government set up National Investment Fund in Novemeber, 2005. The proceeds from disinvestment of CPSUs will be channelized into NIF, which is to be maintained outside the Consolidated Fund of
  • NIF will be professionally managed to provide sustainable returns to the government, without depleting the corpus. Selected Public Sector Mutual Funds will be entrusted with the management of the corpus of NIF, 75% of the annual income of NIF will be used to finance selected social sector schemes, which promote education, health and
  • The residual 25% of the annual income of the fund will be used to meet the capital investment requirements of profitable and revivable CPSUs that yield adequate returns, in order to enlarge their capital base to finance expansion /
  • The following Public Sector Mutual Funds have been appointed initially as Fund Managers, to manage the funds of NIF.
  • UTI Assets Management Company Limited
  • SBI Funds Management Company (Private) Limited
  • Life Insurance Corporation, Asset Management Company Limited

8.5  THE MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) SECTOR

  • Over the last five decades, the Small – Scale Industries (SSIs) sector has acquired place of prominence in the economy of the country. It has contributed significantly to the growth of the GDP, employment generation and
  • The sector now includes not jointly SSI units but also Small- Scale Service and Business Enterprises (SSSBEs) and is thus,

referred   to   as  the  small enterprises sector.

  • In India, Small – Scale Industries (SSIs) can be differentiated from the large-scale industries on the basis of three criteria viz volume of investment in the unit, annual turnover and number of workers employed.
  • In accordance with the provision of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the Micro, Small and Medium Enterprises (MSMEs) are classified in two classes.
  • Manufacturing Enterprises The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951. The Manufacturing Enterprise are defined in terms of investment in plant and
Enterprise
Manufacturing Sector
Investment in Plant and Machinery
Micro EnterprisesDoes not exceed ? 25 lakh
Small EnterprisesMore than ? 25 lakh, but does not exceed ? 5 crore
Medium EnterprisesMore than ? 5 crore, but does not exceed ? 10 crore
  • Service Enterprises The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
  • Enterprise
    Manufacturing Sector
    Investment in Plant and Machinery
    Micro EnterprisesDoes not exceed ? 25 lakh
    Small EnterprisesMore than ? 25 lakh, but does not exceed ? 5 crore
    Medium EnterprisesMore than ? 5 crore, but does not exceed ? 10 crore

Cottage and Village Industries Cottage Industries

  • This type of industry is run by family members on full or part time basis. It has negligible capital investment. There is hand made production using own tools and

Village Industries

  • The industries established in rural area having population below 10000 and having less than 15000 as fixed capital investment
  • Cottage industries have very little capital investment, while small industries can have up to ₹5 crore invested.
  • Cottage industries produce mostly traditional goods, while small industries produce many modern goods
  • Cottage industries are located in the homes of workers, while small industries are not located in homes.

Contribution of Small Scale Industries in Indian Economy

  • The Small Scale sector accounts for over 80% of the manufacturing sector’s

per worker are termed as village industries.

Differences between Cottage and Small Scale Industries

  • Cottage industries are mostly in rural areas, while small industries are mostly in urban
  • Cottage industries are run by family members, while small industries have hired
  • It contributed significantly

towards the economic growth of the nation, with over 39% of the industrial production.

  • The Small – scale sector accounts for over 34% of the total exports and about 45% of the manufacturing exports. Further, over 90% of exports of the SSIs consists of non- traditional items like sports

goods, readymade garments, processed foods, chemicals etc.

  • SSIs are conductive for the economic development of underdeveloped countries like India. Such industries are relatively labour intensive, so they make economical use of the scarce
  • Small scale industries are instrumental in reducing the inequalities in wealth. In these industries, capital is widely distributed in small quantities and the surplus of these industries is distributed among large number of
  • Small scale industries brings about regional dispersal of industries and alleviates regional imbalances.
  • Small-scale industries, make use of local resources including the capital and entrepreneurial skills, which would have remained unused for want of such
  • Small industry sector has performed exceedingly well and enabled the country to achieve a

wide  measure  of industrial growth and diversification.

Problems of Small Scale Industries

  • These industries are not able to get raw material of adequate quality. The raw material they get, is also high in
  • They are not able to get regular power
  • They are not able to get loans, since they cannot offer good security.
  • Due to old methods of production, the goods are many times of poor quality. They lack marketing support due to lack of funds.
  • Their cost of production is high due to expensive raw
  • They have mostly focussed on producing artistic goods, whose demand is limited and so production cannot be increased beyond a
  • They have to compete with large scale industries in many areas. Large industries are able to achieve low costs of production due to economies of

Government Measures to Promote Small Scale Industries

  • Government initiated several measures for the promotion of small scale and cottage industries immediately after independence. The importance of these industries was recognised in the very first Industrial Policy Resolution of 1948 and reiterated in all future industrial policy
  • Steps taken by the government for the development of these industries can be categorised as organisational, financial, fiscal, technical

Organisational measures

  • Establishment of Boards Government constituted several boards at all India level to provide an organisational structure, through which the promotional efforts were to be carried out. These boards include Cottage Industries Board, Handloom Board, Handicraft Board, Khadi and Village Industries Board,
  • Industries Estates The policy of setting up Industrial Estates was initiated in 1955, for the construction of factory premises and to provide basic facilities like power, water roads
  • District Industries Centre (DIC) The concept of DIC was introduced in the Industrial Policy Statement of 1977. This programme was initiated in 1979, to cater to all the requirements of small scale and village industries, under one

Financial Measures

  • Small Industries Development Fund (SIDF) It was set-up in 1986, to provide refinance (i.e., finance to the financial institutions expansion, modernisation, rehabilitation of SSIs.
  • National Equity Fund (NEF) It was set-up in 1987, to provide initial capital for setting up of new projects in small-scale sector in the form of equity (i.e., shares).
  • Single Window Scheme (SWS) It was introduced in

1988, to provide short-term as well as long term financial assistance to SSIs.

  • Small Industries Development Bank of India (SIDBI) It was established in October, 1989, by amalgamation of Small Industries Development Fund (SIDF) and Natural Equity Fund (NEF). SIDBI is the apex financial institution for small enterprises sector. It provides finance to SSI refinance assistance and coordinates the activities of other financial institutions for the provision, of credit to

Fiscal Measures

  • Small-scale enterprises having turnover, upto ₹ 1 crore are fully exempted from the excise
  • Concessional rate of custom duties are levied on import of certain kind of raw materials and components used by
  • Price and purchase preference is granted to    products manufactured in the Small-scale sector in government purchase programme.

Technical Measures

  • Small – scale Industries Development Organisation (SIDO) It was established in 1954. SIDO provides technical, managerial, economic and marketing assistance to SSIs through its network of extension centres and service
  • Council for Advancement of Rural Technology (CART) It was established in 1982, to provide technical assistance to rural industries.
  • Technology Development and Modernisation Fund (TDMF) It was set-up for the technological upgradation and modernisation of the export oriented

Schemes/Programmes for Small Industries

Rajiv Gandhi Udhyami Mitra Yojana

  • Under the scheme, the selected lead agencies i.e., Udyami Mitras are providing guidance and assistance to the potential entrepreneurs registered with them, in preparation of project report, arranging finance,

selection of technology, plant and machinery, marketing tie- ups with buyers, as well as obtaining various approvals, clearances and NOCs etc.

  • Udaymi Mitras are expected to assist the new entrepreneurs in the establishment and successful running of the enterprise for the first six
  • The scheme is beneficial to all potential first generation entrepreneurs, in all towns as well as rural areas, by encouraging establishment of new enterprises and thereby creating new job opportunities locally.
  • A Udyami Helpline (a Call Centre for MSMEs) with toll-free number 1800-180-6763 is in operation to provide information, support, guidance and assistance to first generation entrepreneurs as well as other existing

Credit Rating Scheme to Micro and Small Enterprises

  • National Small Industries Corporation (NSIC)   in

consultation with Credit Rating Agencies and India Bank’s Association has formulated a Performance and Credit Rating Scheme for Micro and Small Enterprises.

  • NSIC is the nodal agency for the implementation of the scheme. NSIC empanelled the leading credit rating agencies like CARE, CRISIL, Dun and Bradstreet, FITCH, ICRA, ONICRA and SME Rating Agency of India Limited (SMERA) to conduct the rating of interested Micro and Small Enterprises under the scheme.

National Manufacturing Competitiveness Programme

  • The National Manufacturing Competitiveness Programme (NMCP) for the MSMEs aims at enhancing the competitiveness of enterprise in this sector. There are 10 components of the NMCP, which have been approved and are available for MSMEs, These are
    • Lean Manufacturing Competitiveness    Scheme

(LMCS) for MSMEs.

  • Design Clinics Scheme for design expertise to MSMEs manufacturing
  • Marketing Assistance and Technology Upgradation Scheme for
  • Enabling manufacturing sector to be competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTS).
  • Technology of Quality upgradation support for MSMEs.
  • Promotion of information and Communication Technology (ICT) in MSME
  • Setting up Mini Tool Room and Training Centres under PPP
  • Marketing Assistance/Support to MSEs (Bar Code).
  • Building Awareness on Intellectual Rights for MSMEs.
  • Scheme for Providing Support for “Entrepreneurial and Managerial Developments of SMEs through Incubators”.

Procurement Policy

  • Government has approved a public procurement policy for Micro   and   Small Enterprises, which mandates  that    Central Ministries/Departments/PSUs have to procure minimum 20% of their total annual purchases from MSEs. Out of this 20%, a share of 4% has to be earmarked for the MSEs owned by SC/ST entrepreneurs.
  • Central Ministries   / Departments / PSUs will prepare their annual plan for setting of goal of 20% procurement and will mention in their annual reports. The policy will help to promote MSEs by improving their market access and competitiveness  through increased participation by MSEs in government purchases and encouraging linkages between MSEs and large

Credit Linked Capital Subsidy Scheme for Micro and Small Enterprises

  • The scheme aims at facilitating technology up-gradation of Micro and Small Enterprises

(MSEs) by providing 15% capital subsidy  (limited  to  maximum  ₹ 15  Lakhs)  for  purchase  of  Plant and Machinery.

National Awards for MSMEs

  • These awards are in three categories: (a) Outstanding Entrepreneurs of Mico, Small and Medium Enterprises (Entrepreneurship, Research and Development and Quality Products), (b) Khadi and Village Industries and (c) Coir Industries. There are special awards for women and SC/ST entrepreneurs and banks for excellence in Micro and Small Enterprises

Marketing Assistance Scheme

  • The main objectives of Marketing Assistance Scheme are to enhance the marketing competitiveness of the Micro, Small and Medium Enterprises (MSMEs), to provide them a platform for interaction with the individual/institutional buyers, to update them with prevalent market scenario and to provide

them    a    forum    for    redressing their problems.

Reservation of items for SSIs

  • The policy to reserve certain items for the small-scale sector was introduced in 1967. It aims to promote the SSIs by protecting them  from competition with the large-scale units.
  • In April 1967, there were only 47 items in the reserved category, which were increased in several phases to 873 in 1984.

New Small Enterprise Policy, 1991

  • Government announced a separate industrial policy for the small enterprise sector on 6thAugust, 1991. It was titled as, “Policy Measures for Promoting and Strengthening Small, Tiny and Village Enterprises”.

Salient Features

  • The ceiling of investment for the ‘tiny sector’ was raised from ` 2 Lakh to ` 5
  • Large units including foreign firms were allowed to purchase

upto 24% equity (shares) of the small scale industries. Scope of tiny sector was enlarged to include all industry related service and business enterprises.

  • Introduction of a new legal form of business organisation, limited partnership. In this form, the liability of atleast one partner is unlimited whereas other partners have their liability limited to the invested

Current Policy on SSIs

  • The report of the Task Force on micro, small and medium enterprises, presented to the Honorable PM on 30th January, 2010, provides a roadmap for the development and promotion of MSMEs.
  • The detailed recommendations cover six major thematic areas, namely credit, marketing, labour, rehabilitation and exit policy, infrastructure, technology and skill development and taxation as also special measures for the North-Eastern region and Jammu and

Abid Hussain Committee Report

  • The Abid Hussain Committee is appointed by the Government of India to suggest measures to improve the performance of small scale industries. The committee submitted its report in January

8.6 INDUSTRIAL SICKNESS

  • The government defined the industrial sickness for the first time in the Sick industrial Companies (Special Provisions) Act, 1985. According to this act, a medium or large (i.e., non SSI) company was defined as sick if
  • It was registered for at least 7 years (later reduced to 5 years).
  • It incurred cash losses in the current year and the preceding year.
  • Its entire net worth (i.e., paid – up capital and reserves) was eroded.
  • A company is regarded, as weak or incipiently sick on the erosion of 50% of its peak net worth during any of preceding five

financial years. Industrial sickness has been covered in the Companies (Second Amendment) Act, 2002, and Companies Act, 2012.

Causes of Industrial Sickness

  • The causes of industries sickness can be classified into two categories i.e., internal and external
[

Internal Causes

  • Originate with the unit, so they can be controlled by the unit. These
  • Faults at  planning   and construction stage
  • Inappropriate plant    and machinery
  • Management problems
  • Entrepreneurial problems
  • Labour problems
  • Financial problems, etc

External Causes

  • Supposed to originate outside the unit, so are not under the control of the unit. Such factors include
  • Erratic supply of inputs
  • Power cuts
  • Demand and    credit constraints
  • Changes in    government policies, etc

Revival of Sick Units

Government Undertake the following Measures to revive the sick industrial

Industrial    Investment    Bank    of India (IIBI)

  • The government established the Industrial Reconstruction Corporation of India (IRCI) in 1971, as a company registered under the Companies Act. Its objective was to revive and rehabilitate the sick units by providing financial, managerial and technical
  • In 1985, IRCI was renamed as Industrial Reconstruction Bank of India (IRBI) and was converted into a statutory corporation. Further in 1997, the IRBI was transformed into a full- fledged development financial institution and rechristened as Industrial Investment Bank of India (IIBI).

Board for Industrial and Financial Reconstruction (BIFR)

  • The government set-up BIFR in 1987, under the Sick Industrial Companies (Special Provision) Act (SICA), 1985. The BIFR is an autonomous quasi-judicial body to take final decision regarding revival and rehabilitation or winding up of the sick
  • It is mandatory for a sick / weak unit to refer itself to the BIFR. On receipt of such reference, the board ascertains whether the company is indeed
  • If sickness is confirmed, the board may allow the company some time to make its net worth positive on its own, prepare revival and rehabilitation package or windup the
  • High interest rates and slower growth in household or retail credit resulted in slower growth in consumer
  • Industry is creating jobs, which have been relatively low- productivity jobs. As a result, per capita income in India has not benefited as much from inter- sectoral migration of workers out of

agriculture as other Asian countries have.

8.7     NEW    INITIATIVES    IN INDUSTRIAL SECTOR

Corporate    Social    Responsibility (CSR)

  • According to the provision for Corporate Social Responsibility (CSR), every company have net wo0rth of ` 500 crore or more or turnover of ` 1000 crore or more or a net profit of ` 5 crore or more during any financial year is required to constitute a corporate social responsibility
  • The Corporate  Social Responsibility Committee will formulate a Corporate Social Responsibility
  • Such a company is required to spend at least 2% of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility

Index    of    Industrial    Production (IIP)

  • IIP is an index for measuring the level of industrial activity in the country. The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
  • It is complied and published monthly by the Central Statistics Office (CSO), with the time lag of six weeks from the reference month.
  • The Index of Industrial Production (IIP), with 2004-05 as base is the leading indicator for industrial performance in the country. Compiled on a monthly basis, the current IIP series based on 399 products/product groups is aggregated into three board groups of mining, manufacturing and electricity. The IIP as an index shows both the level of production and
  • The Central Statistics Office (CSO) of the Ministry of Statistics

and Programme Implementation (MOSPI) released the new series of the IIP with 2004-05, as its new base on June 10, 2011, replacing the IIP series with 1993-94 as base.

India’s Manufacturing Sector

  • The Eleventh Plan and Targeted growth in manufacturing at 10- 11%, but actual performance was only about 7%. It is a matter of concern that the manufacturing sector has not shared in the dynamism of the economy not just in the 11th Plan, but even in preceding plan periods. As a result, the share of the manufacturing sector in GDP is only 15% in India, compared with 34% in China and 40% in Thailand.
  • The slow pace of growth in the manufacturing sector at the stage of India’s development is not an acceptable Manufacturing must provide a large portion of the additional employment opportunities as opposed to agriculture, for India’s increasing number of youth.
  • The challenges to developing and implementing a cohesive manufacturing strategy
  • There is a multiplicity of ministries dealing with different aspects of industry e.g., commerce, labour, environment, science, finance etc. The states have a major role in facilitating the growth of manufacturing in terms of provision of infrastructure, management of various local regulations and managing labour related
  • Industry association lobbying for their members (often conflicting) interests are important
  • Other stakeholder groups, who must be involved in the consultations in a more

systematic and productive way are unions, land owners etc.

– There are many over-sight bodies and committees, perhaps too many. There is need to sharpen their roles and improve co-ordination amongst them.

National Manufacturing Plan as Suggested by the 12th Plan

  • India’s strategic objectives for the manufacturing sector in the next 15 years should be to bring about a quantitative and qualitative change through a set of policies and plans with the following five objectives.
    • Increase manufacturing sector growth to 12-14%, over the medium term to make it the engine of growth for the economy. The     2-4% differential over the medium term growth rate of overall economy   will enable manufacturing to contribute at least 25% of GDP by 2025.
    • Increase the rate of job creation in manufacturing to create 100 million additional jobs by the year 2025.

Emphasis should be given to creation of appropriate skill sets among the rural migrant and urban poor to make growth inclusive.

  • Increase domestic values addition and technological ‘depth’ in
  • Enhance global competitiveness of Indian manufacturing   through appropriate policy
    • Ensure sustainability of growth, particularly with regard to the environment.
    • The National Manufacturing Plan must have three components
  • Special focus on some sectors of manufacturing, which will enable the country to rapidly achieve its goals for manufacturing and strengthen the overall manufacturing sector. For each of these sectors, a long-term plan will be prepared by working groups with participation of the sectoral
  • An identification of the constraints that cut across manufacturing sectors;

implement policies to relieve these constraints and build capabilities.

– Active attention  to improving the processes of implementation.

Consultations between policy- makers and producers are required within each of the policy-areas.

National Manufacturing Policy (NMP) 2011

  • The major objectives of the National Manufacturing Policy are
    • to increase the sectoral share of manufacturing in GDP to at least 25% by the year 2022;
    • to increase the rate of job creation, so as to create 100 million additional jobs by the year 2022;
    • to enhance global competitiveness, domestic value addition, technological depth and environmental sustainability of growth;

Highlights of the National Manufacturing Policy

  • It will set-up National Investment and Manufacturing Zones

(NIMZ). The minimum land area of each NIMZ or greenfield integrated industrial townships with the modern infrastructure is to be 5000 hectares.

  • The first phase of the NIMZ will be established along the Delhi- Mumbai Industrial
  • The National Investment and Manufacturing Zone (NIMZ) proposed under the National Manufacturing Policy will be managed by a Special Purpose Vehicle SPV), headed by a government official and have experts, including those on environment.
  • The industrial townships will be self-governing and autonomous bodies. Single window clearance will be provided to improve the regulatory environment.
  • The Central Government will create the enabling policy framework, provide incentives for infrastructure development on a private – public partnership basis through appropriate financing instruments, while State Governments will identify

suitable land and be equity holders in the NIMZs.

  • The special purpose vehicle, which will administer the NIMZ will set up skill development centres on a build own and operate
  • Private sector will be given standards deduction of 150% of expenditure for skill development institutes.
  • With a view to protect the interests of labour in cases of closure of units, the policy has a mechanism of fund to insure the workers against such
  • The focus will also be on Green manufacturing. In this regard, a Technology Acquisition Fund will be set-up to acquire global technologies and build a patent pool especially for equipment manufacturing that seeks to reduce energy
  • Environmental clearances will continue to be given as per existing rules and regulations, but the Environment Ministry has agreed to give priority in processing cases from the manufacturing
  • The Environment Ministry will also designers officials from the State Pollution Control Board to ensure speedy

NIMZs

  • The NMP provides for the development of NIMZs as integrated industrial townships with state-of-the-art infrastructure and land use on the basis of zoning; clean and energy-efficient    technology; necessary social infrastructure; and skill development facilities to provide a productive environment to persons transiting from the primary sector to the secondary and tertiary

Delhi-Mumbai          Industrial Corridor Project (DMIC)

  • The DMIC is proposed to be developed on either side along the alignment of the 1483 km long Western Dedicated Rail Freight Corridor between Dadri (Uttar Pradesh) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain        sustainable development.
  • A model industrial corridor of international standards is proposed to be developed with emphasis on expanding the manufacturing and services base and creating a ‘Global Manufacturing and Trading Hub’. The DMIC runs across the six states of Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra and majority of projects in DMIC are envisaged to be implemented

through    public    private partnership.

  • The DMIC Development Corporation (DMICDC) was incorporated in January, 2008, for project development, coordination and implementation of the numerous projects in the DMIC.
  • Six investment regions and six industrial area are approved to be developed in Phase I of the project.

8.8  SOME LARGE SCALE INDUSTRIES

Iron and Steel Industry

  • ‘Steel was a symbol of strength and a portent of the glory of India of the future’- Jawaharlal
  • The first public-owned steel plant was Rourkela Integrated Steel Plant was set-up in 1954 with the help of German
  • Steel Authority of India Limited (SAIL) was set up in 1974 and was responsible for the development of the steel industry and for major inputs for the industry.
  • India is the fourth largest producer of the Crude Steel in the world after China, Japan and the USA in 2010. In 2009, India was ranked 3rd. India is the largest producer of Sponge Iron since 2002.

Cotton and Synthetic Textile Industry

  • It is the largest industry in India, accounting for about 20% of industrial output, provides employment to 20 million persons and contributes 33% to total export
  • The Indian textile industry is predominantly cotton based with 65%.
  • The organised textile industry comprises of (i) spinning mills;

(ii) coarse and medium composite mills and (iii) fine and superfine composite mills.

  • Average per capita consumption of cloth has increased steadily since eighties. It stood at 39 m in 2008-09.
  • Textile Export Promotion Council (TEXPROCIL) was established by

the government to strengthen and facilitate the textiles exports.

  • The Scheme for Integrated Textile Park (SITP) was launched in July 2005, merging two schemes, i.e., Apparel Parks for Export Scheme (APES) and Textile Centre Infrastructure Development Scheme (TCIDS).
  • In Global Textiles Exports, India now stands at 2nd
  • India’s share in Global Textiles has increased by 5% in the year 2013.

Jute Industry

  • Jute industry was started in 1885 and India is the largest producer and second largest exporter of jute in the
  • Jute Technology Mission was launched on 2nd June, 2006.
  • The revival package of National Jute Manufactures Corporation (NJMC) envisages operationalisation of three jute mills viz., Kinnison and Khardah in Paschim Banga and Rai Bahadur Hadrut Mill, Katihar (Bihar). Government has enacted Jute Packaging Materials

(Compulsory use in packing commodities) Act, 1997 to broaden the usage of jute.

Food Processing Industry

  • Food processing is one of the most heterogeneous sectors of manufacturing covering marine products dairy products, grain, meat products, fruits, vegetables, sugar, edible oils and beverages. This sector has, however, been one of the fastest growing segment in manufacturing in the current year contributing 27% to average industrial

Major schemes implemented by the Ministry of Food Processing Industries Mega Food Parks (MFOs)

  • Ten MFPs were approved in the first phase
  • Five MFPs were approved in the second
  • Proposals have been invited for additional 15
  • Each of these MFPs is likely to consist of 30-40 food-producing units in the

Sugar Industry

  • India is the largest producer of sugar in the world with a 22% share.
  • It is the second largest agro- based industry in the country. Statutory Minimum Price (SMP) of sugar is fixed by the government on   the recommendation of Commission for Agricultural Costs and Prices (CACP) and after consulting the State Governments, Association of Sugar Industry and cane growers.
  • Dual price mechanism with partial control is applied to sugar industry. Under this, the government fixed the ratio levy and free sale sugar quota in the ratio 28:72. The levy sugar is sold to consumers through fair price shops at lower price and free sale sugar quota is sold by sugar factories at higher prices in the open

Cement Industry

  • The foundation of stable Indian Cement Industry was laid in 1914, when the Indian Cement

Company Limited started manufacturing of cement at Porbandar in Gujarat.

  • India is the second largest producer of cement in the
  • The per-capita consumption of cement in India is just 68

Petrochemical Industry

  • The real thrust to this industry came with the establishment of Indian Petrochemical Corporation Limited at
  • Petrochemical industry mainly, comprises synthetic fibres, polymers, elastomers, synthetic detergents and performance plastics. The main source of feedstock and fuel to this industry are natural gas and
  • National Policy    on Petrochemicals was announced in 2007 with the objective of increasing investment, demand and achieve environmentally sustainable growth.

India Hydrocarbons Vision, 2025

  • To assure energy security by achieving self-reliance through increased indigenous production

and investment in equity oil abroad. To enhance quality of life by progressively improving product standards to ensure a cleaner and greener India.

  • To develop hydrocarbon sector as a globally competitive industry, which could be benchmarked against the best in the world through technology upgradation and capacity building in all facts of the industry. To have a free market and promote healthy competition among players and improve the customer
  • To ensure oil security for the country keeping in view strategic and defence

Fertilizer Industry

  • The first fertilizer industry was set-up in 1906 in Ranipat near Chennai.
  • India meets 85% of its requirement through indigenous production, but is largely import dependent for meeting the phosphorus and potassium fertilizer.
  • India is the third largest producer of fertilizer after China and USA

and second largest consumer after China.

  • NPK (Nitrogen, Phosphorus, Potassium) consumption ratio in 2008-09 was 6:2:1. The ideal ratio is 4:2:1.
  • Urea is the only fertilizer under statutory price
  • With effect from 1st April, 2010, Nutrients Based Subsidy (NBS) Policy is implemented. The nutrients covered are NPK and Sulphur.

Automotive Industry

  • India is the 2nd largest manufacturer of motorcycle and fifth largest manufacturer of commercial vehicles in the
  • In 2009, India was the 4th largest exporter of passenger cars after Japan, South Korea and Thailand.
  • Automotive industry was delicensed in July, 1991, however, passenger cars industry was delicensed in 1993. India is the largest manufactures of tractor in the
  • India is the 9th largest car manufacturer in the

8.9  COMPONENTS OF NEW ECONOMIC POLICY / ECONOMIC REFORMS

  • New Economic Policy was announced in July 1991. main components of new economic policy are liberalisation, privatisation and globalisation (LPG) of the

Reasons for Economic Reforms

  • Mounting Fiscal Deficit
  • Adverse Balance of Payments
  • Fall in   Foreign   Exchange Reserves
  • Rise in Prices
  • International Pressures
  • Poor performances of Public Sector Enterprises

Liberalisation

  • Liberalisation of the economy means freedom of the producing units from direct or physical controls by the

Measures taken for Liberalisation

  • With the exception of five industries, industrial licensing has been abolished for all other industries. In 2002, MRTP Act

has been abolished and in its place a much liberal Competition Act, 2002 has been enacted.

  • Under the policy of liberalisation, industries (which are not covered under industrial licensing) are free to expand and produce. They need no prior official
  • Investment limit of the small industries has been raised to ` 5 crore so as to enable them to introduce Investment limit of tiny industries or micro enterprises has also been increased to ` 25 lakh.
  • Under the policy of liberalisation, Indian industries will be free to buy machines and raw materials from abroad in order to expand and modernise
  • Earlier, for regulating foreign exchange transactions, government had enacted Foreign Exchange Regulation Act – FERA. This act was very restrictive in nature. It involved various checks and controls on transactions involving foreign
  • Following the economic liberalisation and changed

attitude of government towards foreign capital, FERA was replaced with Foreign Exchange Management Act- FEMA in the year 1999. The provisions of FEMA are liberal.

Privatisation

  • “Privatisation is the general process of involving the private sector in the ownership or operation of a state owned enterprise.” It implies parting with government ownership or management of the public sector enterprises.
  • It may happen in two
  • outright sale of the government enterprises to the private entrepreneurs
  • withdrawal of the government ownership and management from the mixed enterprises (the enterprises jointly owned and managed by the government and the private entrepreneurs)

Measures   Adopted   for Privatisation

  • Number of industries reserved for the public sector has been reduced from 17 to 3
  • Public sector industrial units are treated in the same way as sick industries of private sector. In this respect, Sick Industrial companies Act, 1985, has been amended in December, 1991.
  • With a view to improve the working of public sector enterprises, a system of MoU has been introduced. Under it, management of public sector enterprises will be given more freedom and they will be accountable for the
  • National Renewal Fund was established for protecting the interest of employees were offered Voluntary Retirement under this scheme. Upto March, 2009, more than 6 lakh employees had sought voluntary retirement from public sector units. This fund is even used for providing social security measures to retrenched employees of

Globalisation

  • Globalisation means integrating the economy of a country with the economies of other countries in an environment of free flow of goods and services across the borders.
  • It is a process, associated with increasing openness, growing economic inter-dependence and deepening economic integration with the world
  • Owing to globalisation, it was expected that capital and technology will flow from developed countries of the world into India. Accordingly, India would have access to the fruits of global

Measures   Adopted   for Globalisation

  • Under economic reforms, limit of foreign capital investment has been raised. In many industries, foreign direct investment to the extent of 100% has been allowed without any restriction and red- tapism.
  • To achieve the objective of globalisation, partial

convertibility of Indian rupee was allowed. It was in conformity with economic reforms.

  • This convertibility is valid for the following transactions
  • import and export of goods and services;
  • payment of  interest   or dividend on investment;
  • remittances to meet family expenses.
  • It is called partial convertibility because it does not cover capital transactions.
  • All restrictions and controls on foreign trade have been removed. Open competition has been encouraged. Administrative controls have also been minimised.
  • Custom duties and tariffs imposed on imports and exports are being reduced

UPSC Previous Year Questions:

  1. statements is/are correct regarding National Innovation Foundation- India (NIF)? (CSE 2015)
    1. NIF is an autonomous body of the Department   of   Science and Techonology under the Central
    2. NIF is   an   initiative   to strengthern        the                  highly advanced scientific research in India’s          premier scientific institutions in     collaboration with highly  advanced           foreign scientific

Select the correct answer using the codes given below.

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
  1. What is/ are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?
    1. Setting up of National Investment and Manufacturing Zones
    2. Providing the benefit of ‘single window clearance’
    3. Establishing the Technology Acquisition and Develo pment Fund.

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
  1. Despite having large reserves of coal, why does India import millions of   tonnes   of   coal?   (CSE 2012)
    1. It is the policy of India to save its own coal reserves for future and import it from other countries for the present
    2. most of the power plants in India are coal based and they are not able to get sufficient applies of coal from within the country?
    3. Steel companies need large quantity of coking coal which has to be imported

correct

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
  1. In India the overall Index of Industrial Production, the Indices of Eighth Core Industries have combined weight of 90%. Which of the following are among those Eight Core Industries? (CSE 2012)
  1. Cement
  2. Fertilizers
  3. Natural Gas
  4. Refinery products
  5. Textiles

Select the correct answer using the codes given below:

  1. 1 and 5 only
  2. 2, 3 and 4 only
  3. 1, 2, 3 and 4 only
  4. d) 1, 2, 3, 4 and 5
  1. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? (CSE 2011)
    1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
    2. The Government no larger intends to retain the management control of the CPSEs.

Which    of    the    statements    given above is/are correct?

  1. a) 1 only b) 2 only
  2. c) Both 1 and 2 d) neither 1 nor 2
  1. With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: (CSE 2010)
    1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
  1. The National Investment Fund is to be maintained within the Consolidated Fund of
  2. Certain Asset Management Companies are appointed as the fund
  3. A certain proportion of annual income is used for financing select social

Which of the statement given above is/are correct?

  1. a) 1 and 2 b) 2 only
  2. c) 3 and 4 d) 3 only
  1. In India, which of the following is regulated by the forward Markets Commission?
  2. Currency Futures Trading
  3. Commodities Futures
  4. Equity Futures
  5. Both Commodities Futures and Financial Futures

ANSWERS :

  1. (a) 2. (d) 3. (b) 4. (c)  5. (d) 6. (c) 7. (b)

AGRICULTURE

Agricultural Sector

  • Agriculture is the primary Industry in India. The agriculture sector of India has occupied almost 43% of India’s geographical area. Agriculture and allied sectors forestry, logging and fishing accounted for 7% of the GDP in 2012-13.
  • Contribution of Agriculture and allied sector to the Gross Domestic Product (GDP) of the country declined from 6% in 2009-10 to 14.5% in 2010-11 and further to 14.1% in 2011-12.

7.1 FEATURES OF INDIA AGRICULTURE SECTOR

  • Largest Employment Providing Sector

Agriculture in India, is the most important source of employment.

  • Basis for         Industrial Development Agriculture offers raw materials including (cotton, sugarcane and oilseeds) for

industries like textiles, sugar and oil-processing etc. Besides, it also offers market for the expanding industrial sector of the economy.

  • Industries producing capital goods (like tractors, thrashers and harvesters) are directly dependent upon agricultural
  • Development of Tertiary Sector Tertiary sector provides helpful services to the industries and agriculture like banking, warehousing
  • Internal Trade is mostly done in agricultural produce, g., various means of transport get bulk of their business by the movement of agricultural goods.
  • Contribution in Foreign Trade Agriculture plays an important role in the international trade, Jute, tea, coffee and spices are the country’s well known conventional
  • Fertilizers, harvesters and thrashers are the notable import

www.iasgatewayy.com

items meant exclusively for agriculture sector of the economy.

  • International Importance India is the largest producer of coconuts, mangoes, bananas, milk and dairy products, cashew nuts,

pulses, ginger, turmeric and black pepper. It is also the 2nd largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

MAJOR CROPS OF INDIA

CropCrop groupState with the highest area under cultivationState with highest production
BajraCerealsRajasthanRajasthan
CastorOilseedGujaratGujarat
CottonOthersMaharashtraGujarat
GramPulsesMadhya PradeshMadhya Pradesh
GroundnutOilseedGujaratGujarat
JowarCerealsMaharashtraMaharashtra
JuteOthersWest BengalWest Bengal
LinseedOilseedMadhya PradeshMadhya Pradesh
MaizeCerealsKarnatakaAndhra Pradesh
MestaOthersAndhra PradeshAndhra Pradesh
Other PulsesPulsesRajasthanRajasthan
RagiCerealsKarnatakaKarnataka
Rapeseed andOilseedRajasthanRajasthan
mustard
RiceCerealsUttar PradeshWest Bengal
SesamumOilseedRajasthanRajasthan
Small milletsCerealsMadhya PradeshUttarakhand
TurPulsesMaharashtraMaharashtra
WheatCerealsUttar PradeshUttar Pradesh

7.2 FIVE YEAR PLANS AND AGRICULTURE

  • 1st Plan (1951 – 56) The 1st Plan aimed at solving food crisis, hence, highest priority to

agriculture with allocation of more than 14% of the total plan outlay.

  • 2nd Plan (1956 – 61) This plan saw significant reduction in

agricultural outlay. It was

11.7% of the total plan outlay.

  • 3rd Plan (1961 – 66) 2nd Plan experience and recognition that agricultural production is the limiting factor, the 3rd Plan fixed ambitious targets of production for all agricultural crops. This plan also saw the introduction of Intensive Agricultural District Programme (IADP), followed by High Yielding Variety Programme (HYVP).
  • 4th Plan (1969–74) This plan aimed at systematic application of science and technology to improve agricultural practices. This allocation to agriculture sector was 15% of the total plan outlay.
  • 5th Plan (1974–78) The 5th Plan was the only period, when the actual food grain production exceeded the  targeted production.
  • 6th Plan (1980–85) Agriculture growth rate in this plan was 3% as against the targeted 3.8%. The

year 1983-84, of the plan is hailed as the Second Green Revolution.

  • It was the result of expansion in supplies of inputs and services to farmers, agricultural extension and better
  • 7th Plan (1985–90) Total plan outlay on agriculture was 6% and except cotton, none of the targets fixed for various sectors was achieved.
  • 8th Plan (1992–97) Agriculture growth rate in this plan was 44% on account of weather and climate conditions being favourable.
  • 9th Plan         (1997–2002) Agriculture growth rate in this plan was 44%. All the set targets were not achieved and hence, 9th Plan was a failure on agriculture front.
  • 10th Plan (2002–07) This plan adopted the prescription of the National Agricultural Policy (NAP), 200 and therefore, envisaged better management of resources, soil and water, so as to promote sustainable and inclusive agricultural
  • 11th Plan (2007–12) This Plan witnessed an average annual growth of 6% in the Gross Domestic Product (GDP) from agricultural and allied sector against a target of 4.0%. While it may appear that the performance of the agriculture and allied sector has fallen short of the target, production has improved remarkably, growing twice as fast as population.

Agriculture in the 12th Plan

(2012 – 17)

  • Agriculture witnessed a welcome turnaround during the 11th Plan, after the low growth rates achieved during the 9th Plan (2.44%) and the 10th Plan (2.3%) by growing at 3%
  • Some of the challenges that agriculture might face during the 12th Plan include a shrinking land base, dwindling water resources, adverse impact of climate change, shortage of farm labour and increasing costs and uncertainties associated with volatility in international markets.
  • The 12th Plan targets an average annual growth of 4% in agriculture.
  • Some areas, where the plan will be focussed are as follow
  • Public-Private Partnership for better extension and marketing services. This includes modifying Agriculture Produce Market Committee (APMC), Acts to encourage setting up of private markets and contract farming.
  • Development of soil testing and product quality testing facilities.
  • Distribution of more institutional credit equitably, greater focus on small and marginal farmers, improving productivity in rain-fed areas, retaining youth in agriculture and funding for research and

7.3  GREEN  REVOLUTION IN INDIA

  • The introduction of high-yielding varieties of seeds after 1965 and the increased use of fertilizers and irrigation are known collectively as the Green Revolution, which provided the increase in production needed to make India self-sufficient in foodgrains.
  • The term ‘Green Revolution’ is a general one that is applied to successful agricultural experiments in many Third World Countries. It is not specific to India. But is was most successful in
  • There were three basic elements in the method of the Green Revolution.
  • Continued expansion of farming areas
  • Double-cropping existing farmland
  • Using seeds with improved yields.

Drawbacks of    First  Green Revolution

  • While the first Green Revolution
    achieved many successes, there were also many flaws in its strategy, which were not envisaged at that time. These flaws include, negative impact on environment and health due to excessive use of fertilizers and pesticides; depletion of soil
    nutrients; depletion of water resources including ground water, higher costs of input etc.
  • Certain other conditions have also emerged after the first Green Revolution, which are having a negative impact on agriculture like, land constraints due to diversion of land to other economic areas; climate change; diversion of crops to bio-diesel, fragmentation of land holdings making farming
  • For these reasons and to ensure the food security of the country, there is a need for a Second Green Revolution in the country, which would address all the problems.

Second Green Revolution in India

  • Second Green Revolution will consist of a number of different programmes working towards the same goals. Some of the initiatives, which will help in this direction are as follow
    • Increasing crop yields in eastern
    • Organic farming  and contract

farming.

  • Amending the Agricultural Produce Market Committee (APMC)

Bringing Green Revolution in Eastern India Programme (BGER)

The BGREI was launched in 2010- 11, as a part of the Rashtriya Krishi Vikas Yojana. It was implemented in the eastern region of the country. It focused on resource allocation and utilisation. It has resulted in a robust increase in foodgrain production, growth rate being estimated at 11.9% during 2011-12 as against the overall growth rate of 2.2% of the country as a whole. The scheme is being continued, which an allocation of 1000 crore in 2013-

  • Investing in research to drought- proof crops as well as to tackle climate change
    • Investing in supply chain and cold chains.
  • Encouraging privateinvestments through tax law
  • Use of  plant  breeding  and biotechnology
  • Rain water   harvesting    and watershed
  • Improving credit
  • Refocusing on land
Major Agricultural Revolutions
Green RevolutionCereals, Wheat and leguminous plants.
White RevolutionMilk and dairy products
Silver RevolutionEgg and Poultry
Yellow RevolutionEdible Oil
Blue RevolutionFishery
Pink RevolutionPrawns/Meat Processing
Golden RevolutionHoney
Golden Fibre RevolutionJute
Silver Fibre RevolutionCotton
  • Improving soil quality and reclaiming degraded

Evergreen Revolution

  • The concept was given by renowned agricultural scientist MS Swaminathan. Evergreen Revolution emphasises  on               organic agriculture and green agriculture with the help of integrated pest management, integrated nutrient supply and integrated natural resource management. The core of the Evergreen Revolution is sustainability.
  • Bringing Green Revolution to Eastern India, initiated in 2010- 11, intends to address the constraints limiting the productivity of ‘rice based cropping systems’ in Eastern India comprising seven states, viz, Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, Eastern Uttar Pradesh and Paschim Banga.

Tricolour Revolution

  • The reference to a Tricolour Revolution was made by Prime Minister Narendra Modi. This

phrase has three components These are as follows

  • Saffron Energy Revolution for promotion and better utilisation of solar energy
  • White Revolution to ensure cattle welfare and further the goals of White
  • Blue Revolution for fishermen’s welfare, cleansing rivers and sea and conserving

7.4 NATIONAL COMMISSION ON FARMERS

  • It was appointed in 2004, under the chairmanship of Dr. MS Swaminathan.
  • The Commission suggested an Agricultural Renewal Plan, which has five components
  1. Soil health enhancement with special focus on dry
  2. Irrigation Water         Supply Augmentation and Demand Management.
  • Credit and Insurance facilities like creation of Agriculture Risk
  1. Technological reforms in the form of proper integration of production and post-harvest technologies, development of a cadre of rural

farm science managers and lab-to- land demonstrations.

  1. Assured and       remunerative
    • The commission also suggested a

Risk Stabilisation Fund and a farmer centric Minimum Support Price and Market Intervention Scheme (MIS) and creation of Pani Panchayats.

AGRICULTURAL POLICY

Since independence, India has pursued a policy of food self-sufficiency, particularly in food grains, through strong government support of agriculture. The central government and state governments set the agricultural policy. The basic goal of the policy is to increase crop production by expanding irrigation, improving crop yields through adoption of high yielding varieties and increasing cropping intensity with multiple cropping. Though 72 Mha, that is 39 per cent of the cropped area, is irrigated, India’s agriculture is dependent on monsoon rains. India’s crop yields are relatively low by world standards. To increase yields, the public sector provides agricultural inputs such as fertilisers, power and irrigation water at subsidised prices.

The government makes significant public investments in agricultural research, extension and infrastructure development. The central government formulates national agricultural policies of price support, procurement, subsidies, investments, credits and trade. The central government fixes minimum support prices for major commodities and updates the prices each year. The commission for agricultural costs and prices recommends the support price for 24 crops.

The state governments have jurisdiction over grassroots functions of agricultural production, such as providing irrigation, power and fertilisers within the state. The government procures mainly food grains at support prices. It maintains public stocks for disbursement among low- income consumers at subsidised prices through the Public Distribution System (PDS). The subsidy equals the difference between the PDS price and the procurement cost. India spends a sizable part of its budget on food subsidies.

Production and price policies have generated a steady growth in agriculture since the Green Revolution of the 1960s. For many years, India’s domestic market was insulated from world trade by restrictive trade policies. High tariffs and non-tariff barriers limited market access. Only state trading companies were allowed to conduct agricultural trade at the behest of the government. With reforms, the restrictive trade policies are now loosening and total agricultural trade has more than doubled between 1991 and 1999.

7.5AGRICULTURAL INPUTS

  • Agricultural inputs play a crucial role in determining yield levels and in turn augmentation of level of production in the long run. Improvement in yield depends on application of technology, use of quality seeds, fertilizers, pesticides, micro- nutrients and

Seeds (National Seeds Policy

2002)

  • Seeds are a critical input for long-term sustained growth of agriculture. In India, more than four-fifths of farmers rely on farm-saved seeds leading to low seed replacement rate. Hence, the Central Government has been addressing this issue through various

programmes/schemes.

  • Indian Seed Programme involving the participation of Central and                         State Governments, the Indian Council of Agricultural Research (ICAR), state agricultural             universities,

cooperative   and   the   private

sector and farmers and plant breeders.

  • The Protection of Plant Varieties and Farmers’ Rights (PPV and FRs) authority established in November 2005, at New Delhi, has been mandated to implement provisions of the PPV and FR Act, 2001.
  • PPV and FR Act has been passed within the context of Sui Generis System of the WTO, so as to effectively block the efforts of MNCs to capture the seed market by getting patents in their favour and gradually buying out small seed growers in the

Sui Generis System

  • TRIPS Agreement offers three options for plant varieties and their protection, viz, Patent System, Sui Generis Systems and combination of
  • Under Sui Generis System, farmer has the right to save, use exchange share or sell the farm produce including

However, farmer cannot sell the branded seeds.

Seed Bank

  • A scheme for the establishment and maintenance of a seed bank has been in operation since, 1999-2000.
  • The basic objective of the scheme is to make available seeds for meeting contingent requirement and also develop infrastructure for production and distribution of
  • The scheme is being implemented through National Seed Corporation of India and 12 State Seeds Corporations of various

Fertilizers

  • India is meeting 85% of its urea requirement through indigenous production, but depends heavily on imports for its phosphatic and potash (P and K) fertilizer
  • The Per hectare consumption of fertilizers in nutrient terms has been increasing, it increased from 118 Kg per hectare in 2006-

07 to 141.3 kg per hectare in

2011-12.

Fertilizer Subsidy

  • Fertilizer subsidy is borne by the Union Government. The twin objectives of providing fertilizer subsidy are as follows- (i) Making fertilizers available to the farmers at affordable prices so as to encourage intensive cultivation. (ii) Attracting more investment to the domestic fertilizer
  • Since 2010, government is implementing a Nutrient Based Subsidy Scheme (NBS) in which a fixed subsidy is announced on per kg of nutrient annually Additional subsidy is given to micro-nutrients. The prices of urea however, remain under statutory price

Irrigation

  • It is one of the most important inputs for   enhancing productivity and is required at different critical stages of plant growth of various crops. The Government  of  India  has taken

up   irrigation   potential creation

through public funding and is assisting farmers to create potential on their own farms.

  • The total irrigation potential in the country has increased from

81.1 million hectare in 1991-92 to 108.2 million hectare in March, 2010.

Initiation of the Accelerated Irrigation Benefit Programme (AIBP)

  • From 1996-97, to extent assistance for the completion of incomplete irrigation schemes. Under this programme, projects approved by the Planning Commission are eligible for assistance. In the Budget 2012- 13, a government owned water resource finance company is being operationalised to mobilise large resources to fund irrigation.

National Mission on Micro Irrigation (NMMI)

  • Irrigation consumes more than 80% of the water resources of the country. Availability of adequate quantity and quality of water is

the key to achieve higher productivity levels.

  • This mission will result in 85 million hectare to be brought under micro irrigation; savings in use of irrigation water, fertilizer and electricity; increase in production and productivity of crops; convergence with other ongoing schemes of Department of Agriculture and Cooperation (DAC) and other ministries on creation of water harvesting structures and linking the same with Micro Irrigation System for higher water use efficiency and enhanced return to the farmers.

Rainfed Area Development Programme

  • Given the importance of rainfed agriculture in India, the Rainfed Area Development Programme (RADP) was launched by the government as a pilot scheme under the RKVY focusing on small and marginal farmers and farming
  • It adopted a holistic ‘end-to-end approach’ covering integrated

farming, on farm water

management, storage marketing and value addition of farm produce in order to enhance

Sprinkler Irrigation Under sprinkler irrigation, water is sprinkled under pressure on to the crop through a set of nozzles attached to a network of pipes in the form of rainfall. This system is suitable       forhighdensity horticultural crops. The sprinkler system sets could cover more than one hectare by shifting from one place to another.

Drip Irrigation

It is also known as trickle irrigation or micro irrigation, it is an irrigation method that saves water and fertilizer by allowing water to drip slowly to the roots of plants, either onto the soil surface or directly onto the root zone, through a network of valves, pipes, tubing and emitters. It is done through emitters fitted on a network of pipes (mains, sub- mains and laterals). The emitting devices could be drippers, micro sprinklers. Mini sprinklers, micro

farmers’ income in rainfed areas.

National Rainfed Area Authority (NRAA)

  • The government has set-up National Rainfed Area Authority (NRAA), an expert body to provide the much-needed knowledge inputs regarding systematic upgradation and management of country’s dry land and rainfed agriculture. An order for setting up the authority was issued on 3rd November, 2006.
  • The NRAA has a two tier structure. The 1st tier is the governing board that provides necessary leadership and appropriate coordination in implementation of
  • The 2nd tier is the Executive Committee consisting of technical experts                          and representatives from stakeholder ministries.

Power and Irrigation Subsidies

  • Since water and electricity fall within the state domain, power

and irrigation subsidies are provided by the State Governments.

  • Irrigation subsidies are incurred on account of the pricing of irrigation water provided to the farmers by the State Governments.
  • Consequences of Power and Irrigation
    • Increased fiscal
    • Less revenue available for investment in irrigation and other large scale
    • Over exploitation of ground water resources by
    • Inefficient use of irrigation water leading to water logging and

7.6FOOD SECURITY

  • Food security is defined as a situation when ‘All people, at all times, have physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life’ according to FAO

(Food        and        Agriculture Organisation).

  • India’s food security programme tries to tackle some of these problems through various intervention. The main interventions can be said to be the public distribution system and the National Food Security Act, 2013.

Public Distribution System

  • Presently, PDS is operated under the joint responsibility of the Central and the State Governments. The Central Government, through FCI, has assumed the responsibility for procurement, storage, transportation and bulk allocation of foodgrains to the State
  • The operational responsibility including allocation within states, identification of families below the poverty line, issue of ration cards and supervision of the functioning of fair price shops, rest with the State Governments.
  • Under the PDS, presently, the commodities namely wheat, rice, sugar and kerosene are being allocated to the states/UTs for distribution. Some states/UTs also distribute additional/items of mass consumption oils, iodised salt, spices
  • As of date, there are about 99 lakh Fair Price Shops (FPS) across India.
  • The Targeted Public Distribution System (TPDS) was introduced with effect from June 1997.

Food Corporation of India

  • FCI was set-up in 1965 with the primary duty to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other
  • It has also been entrusted with maintaining buffer stocks of foodgrains on behalf of the government. It is the sole repository of foodgrains meant for the

Revamped  Public Distribution System (RPDS)

  • The Revamped        Public Distribution System (RPDS) was launched in June, 1992, with a view to strengthen and streamline the PDS as well as to improve its reach in the far- flung, hilly, remote and inaccessible areas, where a substantial section of the poor live.
  • Foodgrains for distribution in RPDS areas were issued to the states at 50 paise below the Central Issue Price. The scale of issue was upto 20 kg per
  • The RPDS included areas approach for ensuring effective reach of the PDS commodities, their delivery by State Governments at the doorstep of FPSs in the identified areas, additional ration cards to the left out families, infrastructure requirements like additional Fair Price Shops, storage capacity etc. and additional commodities such as tea, salt, pulses, soap etc for distribution through PDS
  • One of the emphasis of 12thFive Year Plan is to encourage public private partnership in agriculture so as to bridge the gap in dryland areas and rapidly diversity
  • The main purpose of the Rainbow Revolution was to achieve the growth rate of over 4% per annum.

Targeted Public Distribution System (TPDS)

  • The TPDS as it operated earlier had been widely criticised for its failure to serve the population below the poverty line. Therefore, on the basis of the recommendations of the Chief Ministers Conference held in July, 1996, an effort was made to streamline the PDS, through the introduction of the Targeted Public Distribution System (TPDS) in June,
  • This system follows a 2 tier subsidised pricing structure for families, Below Poverty Line (BPL) and for those Above Poverty Line (APL).
  • The identification of poor under the scheme is done by the states as per the state-wise poverty estimates of      Planning
  • In order to make the TPDS more focused and targeted towards the poor, the Antyodaya Anna Yojana was launched in December, 2000.
  • The scheme contemplates identification of 120 million poor families and providing them with 256 kg of foodgrains per family per month at a low price of Rs. 2 per kg for wheat and Rs. 3 per kg for

Agricultural Prices and Procurement

  • The Government of India undertakes an agricultural pricing policy and procurement programme to        provide reasonable returns to the farmers and instill confidence in them.
  • The procurement programme is also essential to the functioning of the Public Distribution System (PDS).

Minimum Support Prices and Procurement Prices

  • The Commission for Agricultural Coats and Prices (CACP) announces minimum support prices, procurement prices and issue prices for a number of agricultural commodities every year, The Central Government usually accepts the CACP’s recommendation as
  • Minimum Supports Prices (MSP) These are in the nature of a guarantee to the producers in that prices paid to the farmers cannot be lower than the
  • Procurement Prices These are higher than the MSP and are the prices at which government buys from farmers. In recent years, government has been announcing endless procurement so, that farmers have been selling to the government at procurement prices.
  • Central Issues Prices (CIP) It indicate the prices at which government supplies produce to the fair price shops and ration depots. Wheat and rice the issued

to the State Governments/UTs at

CIP for distribution through the PDS. States may choose to provide additional subsidy to the beneficiaries by reducing prices below CIP.

  • Price support through MSP and procurement prices is extended only for specific crops. This has led to a change in cropping in the country towards certain specific crops such as rice and wheat whose MSP has increased a lot. It has also benefited farmers in those states where such crops are produced in a larger

Decentralised           Procurement Scheme

  • In view of a this, a decentralised procurement scheme was started in 1997, under which State Governments themselves procure       and             distribute The difference between the economic cost fixed for the state, and the Central Issue Price (CIP) is passed on to the states as subsidy.
  • The objectives of this scheme are

to cover more farmers under

MSP operations. Improving efficiency of PDS, providing foodgrains suited to local tastes and reducing transportation costs.

National   Food   Security  Act (NFSA) 2012.

  • NFSA is the biggest intervention of its kind in the world in the realm of food security. It implemented property this law can improve the lives of millions in this
  • Some of the highlights of this act are as follow
  • It extends to the whole of India.
  • Priority households are entitled to 5 kgs of food grains per person per month and Antyodaya households to

35 kgs per household per month.

  • Combined coverage of priority and Antyodaya households will extend to 75% of the rural population

and 50% of the urban population.

  • PDS issue prices will be 3/2/1 per kg for rice/wheat/millets. These may be revised after 3
  • For children in the age group 6 months to 6 years, an age- appropriate meal will be provided through the local Anganwadi.
  • For children aged 6-14 years, one free mid-day meal in all government and government aided schools up to class
  • For children below 6 months ‘exclusive breast heeding will be promoted’.
  • Every pregnant and lactating mother is entitled to a free meal at the local Anganwadi (during pregnancy and 6 months after) and maternity benefits of Rs. 6000 to be paid in
  • The act does not specify criteria for identification of eligible households. Central Government will determine state-wise coverage and states

will then identify the beneficiaries.

  • State food commissions will be created to monitor implementation of the
  • Grievance Redressal system consists of the district Grievances Redressal officer and the State Food Commission.
  • Transparency provisions include-placing PDS records in the public domain, conducting periodic social audits, use of information and communication technology and setting up of vigilance committees.
  • The act also states that the central and State Governments will endeavour to undertake PDS

About NFSM

The National Development Council (NDC) in 2007 adopted a resolution to launch Food Security Mission comprising rice, wheat and pulses to increase the production of rice by 10 MT, wheat by 8 MT and pulses by 2 MT by the end Eleventh Five-Year Plan (2011-12).

Accordingly, a Centrally Sponsored Scheme ‘National Food Security Mission (NFSM)’ was launched from Rabi 2007-08 to operationalise above mentioned resolution.

Storage Capacity and Constraints

  • There are 3 agencies in the public sector, which are engaged in building large scale storage/warehousing capacity namely. Food Corporation of India (FCI),                             Central Warehousing                   Corporation (CWC) and 17 State Warehousing          Corporations (SWCs).
  • While the capacity available with FCI is used mainly for storage of

foodgrains that with CWC and SWCs is used for storage of foodgrains as well as certain other items. By the end of 2012, FCI had a total covered storage capacity of 341.35 lakh tonnes.

7.7   FOOD PROCESSING INDUSTRY

  • India is the 3rd largest producer of food in the world, after China and the
  • Food processing industry is the 5th largest industry in India, in terms of    production, consumption, exports and expected
  • The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10% to reach $200 billion by 2015.
  • The industry is segmented into sectors namely, milk and allied products (dairy), meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds (staple) products, alcoholic and non-alcoholic

classification is not distinct as many processed products overlap different segments.

7.8 CAUSES OF LOW PRODUCTIVITY IN INDIAN AGRICULTURE

General Causes

  • Social environment of villages like Indian farmers being illiterate, conservative and unresponsive to new agricultural techniques is a major obstacle in agricultural development.
  • Pressure of population on land leading to fragmentation of holdings. Productivity of small uneconomic holdings is
  • Land degradation is very high, Almost 43% of the land suffers from high degradation resulting in 33-67% yield

Institutional Causes

  • Highly exploitative land tenure system, especially Zamindari System.
  • Lack of credit and marketing

facilities.

  • Uneconomic holdings in 2000-01, 81% of the total holdings had a size of less than 2

Technical Causes

  • Outdated agricultural
  • Inadequate irrigation facilities- even now more than 55% of the gross cropped area continues to depend on rains.

Agriculture Holdings in India

TypeHoldings (in hectare)Percentage of Total
Marginal HoldingsLess than 159%
Small Holdings01-Apr32.20%
Medium Holdings04-Oct7.20%
Large HoldingsMore than1.60%
  • LAND REFORMS
    • With the twin objectives of achieving social equality and ensuring economic growth, the

land reforms programme was built around three major issues

  • Abolition of
  • Settlement and regulation of tenancy.
  • Regulation of size of
  • After Independence, the government has undertaken many land reform measures g.
  • Zamindari System, has been abolished. The actual cultivator has been given either the ownership right or the right of occupancy
  • Tenancy System has been reformed by enacting various legislative measures in different
  • Ceiling on landholdings has been
  • By 2004, about 1633 lakh hectare of holdings have been consolidated.
  • Co-operative farming has also been developed.
  • In order to improve the conditions of landless farmers. Acharya Vinoba Bhave launched Bhoodan Movement in the

National Land Records Modernisation Programme (NLRMP)

  • The Government of India decided to implement the centrally-sponsored scheme in the shape of the National Land Records Modernisation Programme (NLRMP) by merging two existing Centrally- Sponsored                    Schemes                of Computerisation of Land Records (CLR) and Strengthening of Revenue Administration and Updating of Land Records (SRA and ULR).
  • The integrated programme seeks to achieve the following – modernise management of land records, minimise scope of land/property disputes enhance transparency in the land records maintenance system and facilities moving eventually towards guaranteed conclusive titles to immovable properties in the
  • A single window to handle land records.
  • The mirror principle, which refers to the fact that cadastral records mirror the ground reality.
  • The curtain principle, which indicates that the record of title is a true depiction of the ownership
  • Title insurance, which guarantees the title for its correctness and indemnifies the title holder against loss arising on account of any defect therein.

7.10AGRICULTURAL FINANCE AND CREDIT FACILITIES

  • Agricultural credit is disbursed through a multi-agency network comprising of Commercial Banks (CBs), Regional Rural Banks (RRBs) and cooperatives. With their vast network (covering almost all villages in the country), wide coverage and outreach extending to the remotest parts of the country, the Cooperative Credit Institutions, both in short and long-term structure, are the main institutional agencies for

the dispensation of agricultural credit.

  • After nationalisation, Commercial Banks have also started giving loans for farming operations. Regional Rural Banks and farmer service societies also strengthen the rural credit programmes.
  • National Bank for Agriculture and Rural Development (NABARD) has been established as an apex agricultural finance institution.

Cooperative Credit Societies

  • Rural cooperative credit institutions in India have been organised into short-term and long-term
  • The short-term cooperative credit structure consists of three- tiers- Primary Agricultural Credit Societies (PACS) at the villages level, District Central Cooperative Banks (DCCB) at the district level and State Cooperative Banks (SCB) organised at the state
  • For long-term          credit requirements of the farmers

long-term credit cooperatives

have been set-up. These are organised at two levels and differ from state to state. Generally they are of four types.

  • Unitary structure in which state cooperative Agricultural and Rural Development                                Banks (SCARDBs) operate at state level through their branches and have direct membership of
  • Federal structure in which Primary Cooperative Agricultural and Rural Development                                  Banks (PCARDBs) operate as independent units at the primary level and federate themselves into SCARDS at the state level
  • Mix of federal and unitary types.
  • No separate banks exist and long-term credit is provided by the long-term section of State Cooperative Banks (SCBs) cooperatives accounted for 2% of

institutional        agricultural credit in 2011-12.

Commercial Banks and Rural Credit

  • Share of commercial banks in rural credit was meagre just after Independence. It was 9% in 1951-52 and 0.7% in 1961-62. However, in 2011-12 banks accounted for 72.1% of institutional credit provided to agriculture.

Regional Rural Banks (RRBs)

  • RRBs were set-up to supplement the efforts of co-operatives and commercial banks. They were supposed to combine the local familiarity of cooperatives with the business organisation of the commercial banks. They were to be low cost, low profile credit institutions whose staff was reinvited from the neighbouring areas.
  • Area of RRBs is limited to a specified region comprising one or more district of state. They grant direct loans and advances only to small and marginal farmers, rural artisans,

agricultural labourers and others of small means for productive purposes. Lending rates of RRBs cannot be higher than those of cooperative societies in any particular state. In 2011-12 RRBs accounted for 10.7% of institutional credit to agriculture.

Agricultural Debt. Waiver and Debt. Relief Scheme, 2008

  • The Finance Minister, In his Budget speech for 2008-2009, announced a Debt Waiver and Debt Relief Scheme for farmers. The scheme covered direct agricultural loans extended to ‘marginal and small farmers’ and ‘other farmers’ by Scheduled Commercial Banks, Regional Rural Banks, Cooperative Credit Institutions (including Urban Cooperative Banks) and Local Areas
  • Marginal Farmer meant a farmer cultivating (as owner or tenant or share cropper) agricultural land up to 1 hectare (5 acres), while the same limit for being   defined   as   a small

farmer was between 1 and 2

hectare.

  • In the case of a small or marginal farmer, the entire eligible amount was waived. In the case of ‘other farmers’, there was a One Time Settlement (OTS) Scheme, under which the farmer was given a rebate of 25% of the ‘eligible amount’ subject to the condition that the farmer pays the balance of 75% of the ‘eligible amount’.
  • A National Level Monitoring Committee to monitor the implementation of the scheme was also

Kisan Credit Card (KCC) Scheme

  • Kisan Credit Cards were started by the Government of India, Reserve Bank of India (RBI) and National Bank for Agricultural and Rural Development (NABARD) in August 1998, to help the farmers access timely and adequate credit. Since 1998, about 78 crore KCCs had been issued up to October 2011.
  • The scheme includes reasonable components of consumption

credit and investment credit within the overall credit limit sanctioned to the borrowers, to provide adequate and timely credit support to the farmers for their cultivation needs. Budget 2012-13, has expanded the scope of KCCs as now they can be used as smart cards and ATMs.

NABARD : An Overview

  • NABARD was set-up by the Government of India as a development bank with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural
  • The mandate also covers supporting all other allied economic activities in rural areas, promoting sustainable rural development and ushering in prosperity in the rural
  • It is an apex institution handling matters concerning policy, planning and operations in the field of credit for agriculture and for other economic and developmental activities in rural
  • Essentially, it is a refinancing agency for financial institutions offering production and investment credits for promoting agricultural and developmental activities in rural

7.11   AGRICULTURAL MARKETING AND EXTENSION SERVICES

  • Organised marketing of agricultural commodities is being promoted in the country through a network of regulated markets. Most of the states and union territories have enacted legislations (the Agriculture Produce Marketing Committee [APMC] Act) to provide for regulation of agricultural produce markets.
  • Seventeen states/UTs have amended their APMC Act and the remaining are in the process of doing
  • Presently, wholesale prices of 300 commodities and about 2000 varieties are being reported on the Agricultural Marketing Information Network (AGMARKNET) portal from

more than 1900 markets.

  • Setting up of Terminal Market Complexes (TMCs) for fruits, vegetables and other perishables is important in urban centres in those states, which provide for market reforms as per the Model Act.
  • Support to State Extension Programmes for Extension Reforms was launched in 2005-06, with the aim of making the extension system farmer driven and farmer
  • The Kisan Call Centre Scheme was launched in 2004, to provide agricultural information to the farming community through toll-free telephone lines. A country-wide common 11 digit number-1800-80-1551 has been allocated for
  • The Agri-clinic and Agri- business Centres Scheme was launched in 2002, to provide extension services to farmers on payment basis through setting up of economically viable self employment ventures. NABARD monitors the credit support to Agri-clinics through Commercial

Banks.

TRIFED

  • The government established TRIFED (Tribal Co-operative Marketing Development Federation of India Limited) in August, The basic aim of TRIFED was to save tribals  from exploitation from private players for their minor forest produce and surplus agricultural product. TRIFED plays the role of an agent of FCI.

NAFED

  • NAFED (National Agricultural Cooperative Marketing Federation of India Limited) has been established in cooperative sector at national level for marketing of agricultural product.

Agriculture Insurance

  • There are various major crop insurance schemes under implementation in the

National Agricultural Insurance Scheme (NAIS)

  • The NAIS is a government sponsored central sector crop insurance scheme being implemented in the country since

1999-2000, season with the

objective of providing financial support to farmers in the event of failure of crops as a result of natural calamities, pests and diseases. The Agriculture Insurance Company of India Limited is the implementing agency for the scheme.

Modified NAIS (MNAIS)

  • With the aim of further improving crop insurance schemes, the MNAIS is under implementation on pilot basis in 50 districts in the country from rabi 2010-11
  • Some of the major improvements made in the MNAIS are actuarial premium with subsidy in premium at different rates, all claims liability to be on the insurer, unit area of insurance reduced to village panchayat level for major crops, indemnity for prevented/sowing/planting risk and for post-harvest losses due to cyclone, on accounts payment up to 25%, advance of likely claims as immediate relief, more proficient basis for calculation of threshold yield and allowing

private-sector insurers with adequate infrastructure.

  • Only upfront premium subsidy is shared by the Central and State Governments on 50 : 50 basis and claims are the liability of the insurance

Pilot Weather Based Crop Insurance Scheme (WBCIS)

  • Similarly, the WBCIS is also being implemented as a central- sector scheme from kharif 2007 The scheme is intended to provide insurance protection to farmers against adverse weather incidence such as deficit and excess rainfall, high or low temperature and humidity that are deemed to adversely impact crop production.
  • The WBCIS is based on actuarial rates of premium, but to make the scheme attractive, premium actually charged from farmers has been restricted to be on a par with the NAIS from kharif 2007-08 to kharif 2010-11.

Commodity Futures Market

  • The commodity futures market facilitates the price discovery process and provides a platform for price risk management in commodities. Currently, 113 commodities are notified for futures trading of which 51 are actively traded in 5 national and

16 regional commodity specific exchanges.

Forward Markets Commission

  • The Forward Markets Commission (FMC) is the regulator for commodity futures trading, which it regulates under the provisions of the Forward Contracts (Regulation) Act, 1952. Its chief responsibilities are
  • To ensure the participation of physical                 market stakeholders,            especially farmers, as hedgers in the commodity futures market by increasing the level of awareness of physical market participants and policy markers about the economic role of the
  • It also ensures the dissemination of spot and future prices of agriculture commodities at Agricultural Produce Market Committees (APMCs).
  • It also grants recognition to the new commodity exchanges under the Forward Contracts (Regulation) Act,

7.12 MAJOR SCHEMES OF AGRICULTURE

  • There are various major schemes related to agriculture, which is given below

Mega Food Park Scheme

  • The 10th plan scheme of Food Parks was renamed as the Mega Food Park Scheme (MFPS) in The scheme has been launched with the objective of implementing the express objectives of the Vision 2015, document through creation of excellent infrastructure.
  • At present, 13 mega food parks are at various stages of implementation.
  • By February, 2013, the government had approved a total of 30 mega food
  • 11th Plan (2007-12), aimed at setting up 30 mega food parks. In line with this, Budget 2011- 12, announced setting up another 15 mega food parks in addition to the already existing, 12th Plan (2012-17), has targeted to set-up 50 mega food parks during the plan
  • Objectives of the Mega Food Park Scheme are
  • To provide state of the art infrastructure for food processing in the country on a pre-identified cluster
  • To ensure value addition of agricultural
  • To establish a sustainable raw material supply chain for each cluster.
  • To facilitate induction of latest
  • Quality assurance through better process control and capacity

National Mission on Food Processing (NMFP)

  • NMFP has been launched under the 12th Plan for a decentralised implementation of various schemes under the Ministry of Food Processing with the help of State
  • It consists of the following main schemes technology up gradation of food processing industries, cold chain facilities for non-horticultural produces, modernisation of abattoirs, primary processing centres/collection centres in rural areas, up gradation of quality of street food

National Food Processing Development Council (NFPDC)

  • NFPDC has been set-up to provide guidance to all schemes of the ministry of food processing including NMFP. It will comprise the Agriculture Minister as Chairman, representatives of State Government, Industry associations and related government

National Food Security Mission (NFSM)

  • It was launched in rabi 2007-08.
  • The mission aims to increase production through area expansion and productivity; create employment opportunities and enhance the farm level economy to restore confidence of
  • The NFSM is being implemented in 476 districts of 17
  • To intensify the pulses production programme, since 2010-11, two additional programmes have been adopted under NFSM, These are

 

  • Merging of the pulse component of the Integrated Scheme of Oilseeds, Pulses, Oil Palm and Malze (ISOPOM) with the NFSM Jharkhand and Assam have also been included under the
  • Accelerated Pulse Production Programme (APPP) was initiated to boost the production of pulses by active

promotion of technologies in 1000 clusters of 100 hectare each.

RashtriyaKrishiVikasYojana (RKVY)

  • The RKVY was launched in 2007- 08, with an outlay of Rs. 25000 crore in the 11th Plan for incentivising states to enhance public investment to achieve a 9% growth rate in agriculture and allied sectors. The RKVY permits taking up national priorities as sub-schemes allowing flexibility in project selection and implementation.
  • The sub-scheme under RKVY are

– Bringing Green Revolution to Eastern region – Uttar Pradesh, Jharkhand, Bihar, Paschim Banga, Asom, Odisha and Chhattisgarh introduced in 2010- 11.

  • Integrated development of 60000 pulses and oilseeds villages in rainfed areas introduced in 2010-11.
  • Promotion of Oil
  • Initiative on village
  • Nutri-cerals.
  • National Mission for protein supplements
  • Accelerated Fodder Development Programme.
  • Rainfed Area Development Programme and
  • National Mission on saffron- economic revival of Jammu and Kashmir Saffron introduced in 2010-11.

Precision Farming

Also known as satellite farming, it uses satellite technology,                information technology and GIS Systems to improve Crop management. It is based on observing and responding to intra-fields variations. It helps in matching farming practices with Crop needs, reducing ecological footprint      and             boosting competitiveness through more efficient practices like improved management of fertilizer usage etc.

National Mission for Sustainable Agriculture (NMSA)

  • NMSA is one of the 8 plans, under the National Action Plan on Climate Change (NAPCC) and will be implemented during the

12th Five Year Plan. It seeks to transform agriculture into an ecologically sustainable climate resilient production system, while at the same time, exploiting its fullest potential and thereby ensuring food security, equitable access to food resources, enhancing                                          livelihood opportunities and contributing to economic stability at the national level.

Objectives of NMSA

  • The objectives of NMSA are as follow
    • To devise strategic plans at   the

agro-climate zone level.

  • To enhance agricultural productivity through customised interventions such as used of
  • To facilitate access to information and institutional support by expanding automatic weather station networks to the Panchayat level and linking them to existing insurance mechanisms.
  • To promote ‘laboratory to land’

research by creating model

villages and model farm units in

rainfed and dryland areas.

  • To strategise long-term interventions for emission reduction from energy and non- energy uses by way of introduction of suitable crop varieties and farm practices, livestock and        manure
  • To realised the enormous potential of growth in dryland farming.

Organic Farming

  • Organic farming is a form of agriculture that relies on techniques such as crop rotation, green manure compost and biological pest
  • The main objectives of National Project on Organic Farming include
  • Capacity building through service providers.
  • Financial and technical support for setting up of organic input production unit such as fruits and vegetable market, waste compost, bio-fertilizers and bio-pesticides and vermiculture
  • Human resource development through training     and
  • Awareness creation and market development.
  • Quality control of organic
  • Biological assessment of soil

NEW INITIATIVE

National Mission on Sustainable Agriculture in the Context of Climate Change

With a view to manage the challenging task of the impact of climate change on the country, a National Action Plan on Climate Change (NAPCC) was prepared by the Prime Minister’s Council on Climate Change. As a follow-up to NAPCC recommendations, eight National Missions have been constituted and the National Mission on Sustainable Agriculture (NMSA) relates to the Ministry of Agriculture. The strategy for minimising the adverse impact to climate change consists of research, adaptation and mitigation. The following areas which are already part of the Ministry’s current strategy will need more flexibility, enhancement of scope, a special thrust and accelerated

implementation in the context of climate change:

  • Strategic research, including the application of recent agricultural technologies tools for increasing productivity and reducing vulnerability due to climatic aberrations.
  • Sustained increase in food grain production to counter reduced productivity due to the increase in temperature and extreme
  • Improvement in water use efficiency.
  • Strengthening risk management systems to minimise the adverse impact of climatic variability risks and pests/ diseases
  • Other supportive measures for farmers and other
  • ICAR is an autonomous organisation, under                  the Department of Agricultural Research and Education, Ministry of Agriculture, Government of India. The council is the apex body for coordinating, guiding and managing research and education in        agriculture                                 including

National e-Governance Plan in Agriculture (NeGP-A)

The Mission Mode Project has been introduced during last phase of the 11th plan to achieve rapid development of agriculture in India through use of ICT for ensuring timely access to agriculture related information for the farmers. Information on various IT initiatives/schemes currently undertaken by DAC which are aimed at providing information to the farmers is intended to be provided to farmers through multiple channels including Common Service Centres, Internet Kiosks and SMSs. 12 clusters of services are sanctioned for implementation in 7 States i.e. Assam, Himachal Pradesh, Karnataka, Jharkhand, Kerala, Madhya Pradesh and Maharashtra. The services include information on pesticides, fertilisers and seeds, soil health, information on crops, farm machinery, training and Good Agricultural practices (GAPs), weather advisories, information on prices; arrivals, procurement points, and providing interaction platform; electronic certification for exports and imports; information on marketing infrastructure; monitoring implementation/evaluation of schemes and programmes; information on fishery inputs; information on irrigation infrastructure; drought relief and management; livestock management.

IndianCouncilofAgricultural Research (ICAR)

horticulture, fisheries and animal sciences in the entire country. It was established in 16th July, 1929.

Animal Husbandry, Dairying and Fisheries

  • The 12th Five Year Plan envisaged overall growth of 5% per annum, for the sector. In 2011-12, this sector contributed 127 million tonnes of milk, 45 billion eggs, 44.73 million kg wool and 5.51 million tonnes of meat. The 18th Livestock Census (2007) has placed total livestock population at 529.7 million and total of poultry birds at 648.8 million.

Dairy Sector

  • India ranks first in the world in milk production. The per capita availability of milk has also increased from 176 g per day in 1990-91 to 290 g in 2011-12. However, world average per capita availability was 31 g per day in 2011 compared to 273 g per day for India.
  • The Ministry of Agriculture is implementing important schemes, namely the intensive Dairy Development Programme, Strengthening Infrastructure for Quality and Clean Milk Production and Assistance to Cooperative   and Dairy Entrepreneurship Development Scheme, in the dairy sector. A major programme for genetic improvement called the National Project for Cattle and Buffalo Breeding (NPCBB) was also launched in 2000.

National Dairy Plan

  • It is a strategic plan prepared by NDDB for achievement of

180 million tonnes of milk production by 2021-22. Under the plan, districts are separated into 324 high potential districts for intensive development and

282 low potential districts for further expansion.

  • The plan envisages breed improvement through Artificial Insemination and through

natural service, setting up

plants to augment cattle feed, by-pass protein and mineral mixture        and

expanding/strengthening milk processing infrastructure.

  • The first phase of the plan, which is a 6 year project was launched in April 2012. It will be implemented in the 14 major milk producing States of Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, Paschim Banga, Maharashtra, Karnataka. Tamil Nadu, Andhra Pradesh, Odisha and Kerala.
  • Minimum Support Prices (MSPs) was implemented with basic aim for 24 major agricultural commodities each season and organise purchase operation.

 

  • The Forward        market Commission (FMC) is the regulator for commodity futures, which it regulates under the provision of the

Forward                     Contracts (Regulation Act, 1952.)

 

Livestock Insurance

  • A centrally sponsored scheme for livestock insurance is being implemented in all the states with the twin objectives of providing protection mechanism to farmers and cattle bearers against any eventual loss of their animals due to death and to demonstrate the benefit of the insurance of livestock and popularise it with the ultimate goal of attaining qualitative improvement in livestock and its
  • The scheme benefits farmers and cattle bearer        with indigenous/cross-breed milch cattle and buffaloes in 300 selected districts. The benefit of subsidy is to be restricted to two animals per beneficiary per household.

Poultry

  • Four regionalCentralPoultry Development                  Organisation

located        at       Chandigarh,

Bhubaneshwar, Mumbai and Hessarghatta are focusing on production of stock suitable for backyard rearing, training to the farmers to upgrade their technical skills.

  • The Poultry Development Scheme comprising three components, namely Assistance to State Poultry Farms, Rural Backyard Poultry Development and Poultry Estates is being implemented.

Fisheries

  • Fish is an important source of and also an important source of livelihood, production of fish, both marines and inland, has gone up from 6 million tonnes in 2000-01 to 8.7 million tonnes in 2011-12. The exports of marine products have increased significantly in the year 2011-12.

Marine Fishing Policy, 2004

  • The policy’s objectives are

– To augment marine fish production of the country up to sustainable    level    in    a

responsible   manner,   so   as  to

boost export of sea food from the country and also increase per capita fish protein intake of masses.

  • To insure socio-economic security of the artisanal fishermen, whose livelihood solely depends on this
  • To ensure        sustainable development of marine fisheries, with due concern for ecological integrity and bio- diversity.
  • This policy        advocates, protection, consideration and encouragement of subsistence level farmers and not just the deep-sea sector. It seeks to promote                 conservation, management and sustainable utilisation of India’s invaluable marine

India’s Position in World Agriculture Production

ProduceGlobal
Rank
Wheat2nd
Rice/Paddy2nd
Total Pulses1st
Groundnut (in shell)2nd
Vegetables (with melons)2nd
Fruits (excluding melons)2nd
Sugarcane2nd
Tea3rd
Jute and Jute like fibres1st
Cotton (lint)2nd
Total Milk1st
Total Eggs3rd
Total Meat5th
  • The Fair and Remunerative Price (FRP) of sugarcane is approved by the (CSE 2015)
    1. Cabinet Committee on Economic Affairs
    2. Commission for Agricultural Costs and Prices
    3. Directorate of Marketing and Inspection, Ministry of Agriculture
    4. Agricultural Produce Market Committee
  1. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? (CSE 2014)

UPSC Previous Year Questions :

  1. In India, markets in agricultural products are regulated under the(CSE 2015)
    1. Essential Commodities Act,

1955

  1. Agricultural Produce Market Committee Act enacted by States
  2. Agricultural Produce (Grading and Marking)

Act, 1937

  1. Food Products Order,1956 and Meat and Food Products Order, 1973
  1. To enable the Central Bank to control the amount of advances the banks can create
  2. To make the people’s deposits

with banks safe and liquid

  1. To prevent the commercial banks from making excessive sprofits
  2. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below:

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  1. d) 1, 2, 3 and 4
  1. With what purpose is the Government of India promoting the concept of ‘Mega Food Parks’? (CSE 2011)
    1. To provide good infrastructure facilities for the food processing industry.
    2. To increase the processing of perishable items and reduce wastage.
    3. To provide emerging and eco- friendly food processing technologies to

Select the correct answer using the codes given below

  1. a) 1 only b) 1 and 2
  1. 2 and 3 d) 1, 2 and 3
  1. An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the Identified districts of the country. What are those crops? (CSE 2010)
  1. Rice, wheat, pulses, oil seeds and
  1. Rice and Wheat
  2. Rice, wheat and pulses
  3. Rice, wheat, pulses and oil seeds only.

ANSWERS :

1.(c)             2. (a)         3. (b)         4. (d)         5.(b)

GROWTH AND DEVELOPMENT

2.1 ECONOMIC GROWTH

  • Economic growth is an increased economic capacity to produce goods and services, compared from one period of time to another which is conventionally measured by increase in a country’s GDP (Gross Domestic Product) or GNP (Gross National Product) or per-capita Net Domestic Product (NDP). Per-capita NDP is the most appropriate measure of economic growth.

Economic growth comes in two forms

− An economy can either grow extensively by using more resources (i.e., physical, human or natural capital).

− Intensively by using the same amount of resources more efficiently (productively).

2.2 ECONOMIC DEVELOPMENT
According to Michael Todaro “Economic development is an increase in living standards improvement in self-esteem needs and freedom from oppression as well as a greater choice.”

  • It is referred to as the quantitative and qualitative changes in economy such as development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy etc.
  •  Human Development Index is the most appropriate measure of economic development.
  •  Economic development in all societies must have at least the following objectives
  • − To increase the availability and widen the distribution of basic life sustaining goods.
  • − To raise levels of living by ensuring higher incomes, more jobs and greater attention to culture.
  • − To expand the range of economic and social choices available to both individuals and nations.

2.3 GROWTH AND DEVELOPMENT
While the term economic growth refers to increase over time in a country’s real output of goods and services i.e. product per capita, the term economic development, in contrast, is more comprehensive. It implies progressive changes in the socio-economic structure.

2.3 GROWTH AND DEVELOPMENT 
While the term economic growth refers to increase over time in a country's real output of goods and services i.e. product per capita, the term economic development, in contrast, is more comprehensive. It implies progressive changes in the socio-economic structure.
Difference Between Economic Growth and Economic Development
Economic GrowthEconomic Development
1. It indicates quantitative improvement in the economic progress of a country1. It indicates qualitative improvement in the economic progress of a country
2. It shows growth in national income and per capita income over time2. It shows not only a sustained increase in national and per capita income but also qualitative changes which leads to higher standard of living.
3. A country may grow but it may not develop3. Economic development includes the notion of economic growth.
4. Economic Growth = Size of output (A Quantitative concept)4. Economic Development = Size of output + Welfare (A Qualitative concept)
5. Growth is concerned with increase in the economy’s output5. Concerned with structural changes in the economy
6. Growth relates to a gradual increase in one of the components of Gross Domestic Product: consumption, government spending, investment, net exports 6. Development relates to growth of human capital indexes, a decrease in inequality figures, and structural changes that improve the general population’s quality of life
7. It refers to an increase in the real output of goods and services in the country like increase the income in savings, in investment etc. 7. It implies changes in income, saving and investment along with progressive changes in socio-economic structure of country (institutional and technological changes)
8. Quantitative. Increase in real GDP.8. Qualitative, HDI (Human Development Index), gender-related index (GDI), Human Poverty index (HPI), infant mortality, literacy rate etc.
9. Brings quantitative changes in the economy9. Brings qualitative and quantitative changes in the economy
10. Narrower concept than economic development10. Normative concept
11. Economic growth is a more relevant measure for progress in developed countries. But it is widely used in all countries because growth is a necessary condition for development.11. Economic development is more relevant to measure progress and quality of life in developing nations.

Measurement of Economic Development

  • To measure economic development is a complex process and economists have used various yardstick for measuring economic development.

National Income and Per-Capita Income

  • This is the traditional approach to measure economic development. World Bank uses the concept of per-capita Gross National Income (GNI) as a measure for comparing and classifying countries based on their stage of economic development.
  • World Development Report (WDR), 2012 (Subtitled Gender Equality and Development) classifies countries into following categories based on per-capita

Categories Based on Per-Capita Income

  • Low Income Countries: US $ 1045 and less
  • Middle Income Countries: US $ 1046 – $ 12745
  • High Income Countries: US $ 12746 and above

 

  • According to this classification, India with a per-capita GNI of US $ 1570 (2013 figures) falls in the category of Middle Income countries.
  • Since official exchange rate is used in the international comparison of GNI, therefore, they do not give a correct picture for two reasons.

–   Purchasing power capacity of a country ignored and

–  official exchange rate does not reflect the value of non-traded goods.

  • In order to overcome this problem, following the work of IB Kravis and others “International comparisons of real product and purchasing power”, (1978), the UN International Comparison Programme gave the Purchasing Power parity (PPP) method.
  • Based on PPP method according to World Bank, the GNI Per-capita of India is calculated to be US $ 3640 (2011).

Purchasing Power Parity (PPP)

  • PPP approach was given by economist Gustav Casell in 1918. The concept is based on the law of one price, wherein the absence of trade and non-trade barriers, identical goods will have same price in different countries, when the prices are expressed in the same currency.
  • The PPP is defined as the number of units of a country’s currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the United States. e.g., if we have to spend ` 30 for purchasing the same amount of goods and services as are purchased in spending one dollar in USA, then the exchange rate in PPP approach is $1 = `30

Physical Quality of Life Index (PQLI)

  • PQLI was the first attempt towards providing comprehensive measure of economic development. It was developed by Morris David Morris in the mid-1970
  • PQLI is the average of three values, viz life expectancy, basic literacy rate and infant mortality rate. Each value was scaled on 1 to 100, where 1 represents the worst and 100 represents the best.
  • Essential components of human development are: equity, sustainability, productivity and empowerment.
  •  HDI measures the average achievements in a country in three basic dimensions of the human development: a long and healthy life, access to knowledge and a decent standard of living.
  •  HDR 2010 had adopted a new approach, and defined HDI as the geometric mean of normalised indices measuring achievements in each dimension.

2.4 HUMAN DEVELOPMENT

INDEX (HDI)

  •  The United Nations Development Programme (UNDP) introduced the HDI in its first Human Development Report (HDR) prepared under the stewardship of Mahbub-ul-Haq in 1990.
  •  HDR, 1990 has defined human development as the process of widening people’s choices as well as raising the level of well-being achieved.
  • Essential components of human development are: equity, sustainability, productivity and empowerment
  • HDI measures the average achievements in a country in three basic dimensions of the human development: a long and healthy life, access to knowledge and a decent standard of living.
  • HDR 2010 had adopted a new approach, and defined HDI as the geometric mean of normalised indices measuring achievements in each dimension.

Human Development Report (HDR), 2014

The 2014 edition of Human Development Report; entitled: Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience, was released by the United Nations Development Programme, at Tokyo, on 24th July, 2014.

This report shows that overall global trends are positive and that

GROWTH AND DEVELOPMENT

progress is continuing. yet, lives are being lost and livelihoods and development undermined, by natural or human induced disasters and crisis. This report, for the first time in a global HDR, considers vulnerability and resilience through a human development lens.

Inequality-Adjusted Human Development Index (IHDI)

  •  IHDI adjusts the Human Development Index (HDI) for inequality in distribution of each dimension across the population. The IHDI accounts for inequalities in HDI dimensions by ‘discounting’ each dimension’s average value according to its level of inequality
  •  The IHDI equals the HDI, when there is no inequality across people, but is less than the HDI as inequality rises. In this sense, the IHDI is the actual level of human development (accounting for this inequality), while the HDI can be viewed as an index of potential
  • human development (or the maximum level of HDI) that could be achieved, if there was no inequality.
  • The loss in potential human development due to inequality is given by the difference between the HDI and the IHDI and can be expressed as a percentage.

Gender Inequality Index (GII)

  • GII reflects women’s disadvantage in three dimensions reproductive health, empowerment and the labour market for as many countries as data of reasonable quality allow.
  • The index shows the loss in human development due to inequality between female and male achievements in these dimensions. it ranges from O, which indicates that women fare as poorly as possible in all measured dimension.

HUMAN DEVELOPMENT REPORT – 2014
Top and Lowest 5 countries and position of India

INDEXTOP 5 COUNTRIES LOWEST 5 COUNTRIES INDIA
HDI (Human Development Index)Norway, Australia, Switzerland, Netherlands, United States Niger, Congo, Central African Republic, Chad, Sierra Leone With a score of 0.586 (India ranked 135 out of 187 countries)
IHDI (Inequality adjusted HDI)Norway, Australia, Netherlands, Switzerland, Germany Central African Republic, Sierra Leone, Congo, Niger, Chad With a score of 0.418, (India is ranked 100 out of 144 countries)
GII (Gender Inequality Index) (2013)Slovenia, Switzerland, Germany, Sweden, Denmark With a score of 0.563, (India is ranked 127 out of 187 countries)

Gross National Happiness (GNH)

  • The term ‘Gross National Happiness’ was coined in 1972, by Bhutan’s then King Jigme Singye Wangchuck.
  •  GNH was designed in an attempt to define an indicator that measures quality of life or social progress in a more holistic and psychological terms than the economic indicator of GDP. It is not measured directly, but only by the factors, which are believed to lead to it.
  • A second-generation GNH concept, treating happiness as a socio-economic development metric, was proposed in 2006, by Med Jones.

 

  • GNH value is proposed to be an index function of the total average per-capita of the following measures
    • Economic Wellness – Environmental Wellness
    • Physical Wellness – Mental
  • Workplace Wellness – Social Wellness
    • Political Wellness

Multidimensional Poverty Index (MPI)

  • MPI was developed in 2010, by Oxford Poverty and Human Development Initiative and UNDP and different factors to determine poverty beyond income based list were used.
  •  The MPI is an index of acute multidimensional poverty. It shows the number of the people, who are multi dimensionally poor (suffering deprivation in 33% of weighted indicators) and the number of deprivation with which poor households typically contend
  •  It reflects deprivation in very rudimentary services and core human functioning for people across 104 countries. The index uses same three dimensions as the Human Development Index such as health, education and standard of living. These are measured using 10 indicators.
DimensionsIndicators
1. Health1.Child morality
2. Nutrition
2. Education3.Years of schooling
4. Children enrolled
3. Living Standards5. Cooking fuel
6. Toilet
7. Water
8. Electricity
9. Floor
10. Assets
  • Each dimension and each indicator within a dimension is equally weighted.
  • The lower the index value the lesser the multidimensional poverty.

MPI in Some Asian Countries

MPI in Some Asian Countries CountryMPI Value
Bangladesh0.292
Bhutan0.119
China0.056
India0.283
Nepal0.35
Pakistan0.264
Sri Lanka0.021

Green Gross Domestic Product (Green GDP)

  • Green GDP is an index of economic growth with the environmental consequences of that growth factored in.
  •  Green GDP monetises the loss of biodiversity and accounts for costs caused by climate change. Some environmental experts prefer physical indicators (such as waste per-capita or carbon dioxide emissions per year) which may be aggregated to indices such as the Sustainable Development Index.
  • The challenges of sustainable development are population, poverty, inequality, the shortage of drinking water, human health, consumption of energy, deforestation and petrol consumption

Millennium Development Goals (MDGs)

  • MDGs were eventuated at the UNs Millennium Summit 2000, where the world leaders agreed on a set of quantifiable and monitorable goals for development and poverty eradication to be achieved by 2015. These MDGs were based on the assumption that “progress that world has made over the past 20 years shows that these goals are attainable.”

2.5 SUSTAINABLE
DEVELOPMENT

  •  The sustainable development is defined as the development to achieve the needs of present generation, without compromising future generations need.
  •  Sustainable development ensures the well-being of individual by integrating social development, economic development and environmental conservation and protection.

Following are the eight MDGs

  •  Eradicate Extreme Poverty and Hunger
  •  Achieve Universal Primary Education
  •  Promote Gender Equality and Empower Women
  •  Reduce Child Mortality
  •  Improve Maternal Health
  • Combat HIV/AIDS, Malaria and other Diseases
  •  Ensure Environmental sustainability
  •  Develop a Global Partnership for Development

Many of the countries like India and China, earlier considered to be emerging are now said to have emerged and the term is considered to be outdated by many.

Different Levels of Economic Development
Developing Country

  • A developing country is a country, that has not reached the Western style standard of democratic government, free market economy, industrialisation, social programmes and human rights guarantees for their citizens.

Newly Industrialised Countries (NIC)

The word NIC is used for those countries, which are more advanced economy than other developing nations, but which have not yet fully demonstrated the signs of a developed country.

Emerging Markets

  • These are countries with social or business activity in the process of rapid growth and industrialisation.
    Many of the countries like India and China, earlier considered to be emerging are now said to have emerged and the term is considered to be outdated by many.

    UPSC Previous Year Question:

    1. Economic growth in country X will necessarily have to occur if? (CSE 2013)
    a) There is technical progress in the world economy
    b) There is population growth in X
    c) There is capital formation in X
    d) The volume of trade grows in the world economy
    Ans: (c

 

 

 

 

Inflation

Inflation

  • Inflation refers to the rise in general price level in the country over a period of time. Inflation could be monetary or price inflation.
  • When you have inflation more money is being circulated in the economy which causes the currency to lose its purchasing power and this leads to an increase in the price of goods and services. Over the course of many years, economic cycles go through periods of inflation, deflation and

stagflation.

  • Each one of these has a specific effect on the overall economy as a whole and sometimes can lead to long periods of recessions or depressions in the

5.1 CAUSES OF INFLATION

  • Inflation is caused due to a mismatch between demand and supply, i.e., when demand exceeds supply. Thus, inflation can occur due to changes in the demand side or the supply side or

5.1.1 Demand Side Inflation

  • It is also known as ‘Demand Pull’

Inflation.

  • Increase in demand can occur due to many reasons, such as
    • Increase in public expenditure, especially by the government operating large fiscal
    • Loose monetary policy of the Central Bank, which leads to low interest rates and thus, higher
    • Rapid GDP growth, which leads to more employment, higher wages.
    • Increase in
    • Depreciation of exchange rate, which reduces imports, increases exports and thus, pulls up
    • Reduction in direct taxes, which puts more money in the hands of
    • Speculation in commodities market

5.1.2 Supply Side Inflation

  • It is also known as ‘Cost Push’

Inflation.

  • Factors influencing inflation from the supply side can also be many, such as
  • Backward agricultural sector, which is not able to produce enough food.
  • Inefficient storage, transportation and marketing infrastructure, which leads to wastage and reduction in
  • Hoarding by traders of essential items, artificially reduces supply and causes
  • Rise in the prices of crude oil, fertilizers
  • Rise in labour
  • Higher costs of imported materials.
  • Higher cost of capital due to squeezing of credit by the Central Bank.
  • Cartelisation by a few big suppliers to fix prices arbitrarily to make undue
  • Monopoly of a single supplier in the market, enabling him to set arbitrary
  • Pushing up of profits by the management of a company by increasing the prices also leads to inflation.
  • It has to be understood that it is not always easy to differentiate between demand and supply side inflation and an example from the demand side can also be explained from the supply side and vice- versa.

5.2 EFFECTS OF INFLATION

  • Inflation affects different people differently. When price rises or the value of money falls, some groups of the society gain, some lose and some stand in
  • Let us discuss the effects of inflation on distribution of income and wealth, production and on the society as a

5.2.1 On Business Community

  • Inflation is welcomed by entrepreneurs and businessmen because they stand to profit by rising
  • They find that the value of their inventories and stock of goods is rising in money terms. They also find that prices are rising faster than the costs of production, so that their profit is greatly enhanced.

5.2.2 On Fixed Income Groups

  • Inflation hits wage-earners and salaried people very hard. Although wage-earners, by the grace of trade unions, can chase galloping prices, they seldom win the
  • Since, wages do not rise at the same rate and at the same time as the general price level, the cost of living index rises and the real income of the wage earner decreases.

5.2.3 On Farmers

  • Farmers usually gain during inflation, because they can get better prices for their harvest during

5.2.4 On Investors

  • Those, who invest in debentures and fixed-interest bearing securities, bonds etc lose during inflation. However, investors in equities benefit because more dividend is yielded on account of high profit made by joint-stock companies during
  • Inflation will lead to deterioration of gross domestic savings and less

capital formation in the economy and less long-term economic growth rate of the economy.

5.3 OTHER INFLATION RELATED CONCEPTS

  • 3.1 Deflation: A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be also caused by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression.
  • 3.2 Stagflation: When you have a slow economy with high inflation rates   and unemployment, stagflation is usually the result. When the economy does not grow and prices continue to rise you have a stagflation cycle in the economy.
  • 3.3 Disinflation: This is a reduction in the rate of inflation over time, even though inflation itself may be positive.
  • 3.4 Reflation: It is an attempt to bring back inflation in an economy, which is in deflation so as to induce growth.

5.4 MEASURES OF INFLATION

  • Inflation refers to the changes in general price level in the country over a period of
  • There are three standard measures of inflation, viz
    • Wholesale Price Index (WPI)
    • Consumer Price Index (CPI)
    • GDP
  • Core
    • In India, to measure the price level, the Wholesale Price Index and the Consumer Price Index are

5.4.1 Wholesale Price Index (WPI)

  • It measures the change in wholesale prices on weekly basis. But since 2009 it has been made monthly. Average annual wholesale prices of the current year are related to average annual wholesale prices of the base year (assumed as 100). This index covers 676 commodities and does not account for the
  • Weights are accorded to different goods depending on their relative significance. In preparing the Wholesale Price Index, higher weightage is accorded to the manufacturing products than the others.
  • Precisely, 65% weightage is accorded to manufactured products, 1% to primary articles and 14.9% to fuel and lubricants.

5.4.2 Consumer Price Index (CPI)

  • It measures the change in retail prices on monthly basis. On the basis of monthly indices, average annual CPI is worked out. Average annual retail prices for the current year are related to the average annual retail prices of the base year (assumed as 100). Like wholesale price index, different goods are accorded weights depending on their relative significance.
  • It needs to be emphasized that while WPI includes goods only, CPI includes both goods as well as services. Another important feature of CPI is that it focuses on

a  homogeneous   group   of consumers.

  • CPI reflects cost of living of the concerned category of consumers. CPI for the industrial workers is a widely used index in India. It is also used to determine the dearness allowances        of government
  • Besides, CPI of agricultural labourers, CPI for urban non- manual employees are also calculated by the economists for some specific

5.4.3 New Consumer Price Indices

  • At the retail level, CPI is meant to reflect the cost of living conditions and is computed on the basis of the changes in the level of retail prices of selected goods and services, on which consumers spend the major part of their income.
  • Therefore, a broad-based CPI for the country as a whole, including both services and manufacturing products, has greater relevance for Monetary Policy
  • In India, however, data on CPI relates to different segments of the population rather than the entire population. With a view to addressing this issue, the Reserve Bank has taken the initiative and prepared an approach paper on CPI (Urban) and CPI (Rural).
  • Subsequently, the Central Statistical Organisation (CSO) has taken up the work for generating data on CPI (Urban) and CPI (Rural). The new CPIs once complied will go a long way in filling a major data gap in price statistics.

5.4.4 Introduction of CPI (Urban) and CPI (Rural)

  • The Central        Statistical Organisation (CSO) has taken up a new initiative of compilation of CPI (Urban) CPI (Rural) and CPI (rural+urban) for all States/UTs and all India by considering all sections of the urban and rural population.
  • In urban areas, all cities/towns having population (2001 Population Census) more than 9 lakh and all State/UT capitals not

covered therein were selected purposively. In all 310 towns have been selected either on purposive or random basis, from which 1114 quotations (price schedules) are canvassed every month.

  • In rural areas, with a view to having a manageable workload and considering that the CPI (Rural) would provide the price changes for the entire rural population of the country, a total of 1183 villages have been selected at all India
  • The CSO has also decided to bring out a national CPI by merging CPI (Urban) and CPI (rural) with appropriate weights, as derived from NSSO 61st round of Consumer Expenditure Survey (2004-05)

5.4.5 Producer Price Index

  • Even, when we have a revised WPI, we would still not have a Producer Price Index (PPI). The PPI covers price changes faced by the producers on primary, intermediate and finished goods and services ready for the
  • The primary difference between the WPI and the PPI is, in addition to the coverage, that the WPI reflects changes in the average cost of production including mark-ups and taxes, while the PPI measures price changes of transacted goods at the gate excluding
  • The purpose of the PPI is to provide a measure of prices received by producers of commodities. The PPI usually covers the industrial (manufacturing) sector as well as public utilities (electricity, gas and communications). Some countries also include agriculture, mining, transportation and business services.

5.4.6 GDP Deflator

  • It refers to the ratio between GDP at current prices and GDP at constant prices. If GDP at Current Prices = GDP at Constant Prices, GDP deflator = 1, implying no change in price level. If GDP deflator is found to be 2, it implies rise in price level by a factor of 2 and if GDP

deflator is found to be 4, it implies a rise in price level by a factor of 4.

  • GDP deflator is acclaimed as a better measure of price behaviour because it covers all goods and services produced in the

5.4.7 Inflation Based on the CPI vs WPI

  • Inflation in all major indices largely followed each other. The gap between WPI and CPIs had widened in 2009-10, due to higher food inflation as food items have a much larger weight in CPI vis-a-vis the
  • Food items contribute a weight of 20% in CPI-IW and 69.15% in CPI-AL as against 24.31% in WPI.

5.5 CORE INFLATION

  • Another way to analyse inflation data is by looking at core inflation, which is generally a chosen measure of inflation that excludes the more volatile categories like food and energy prices.
  • The main argument here is that the Central Bank should effectively be responding to the movement in permanent component of the price level rather than   temporary deviations. It is, therefore, a preferred tool for framing long- term

Change in Reporting of Inflation

  • At present, the WPI for all commodities including manufactured products is released only on a monthly basis. However, until recently WPI for primary articles and the fuel group was also being released on a weekly basis. But, it was observed over a period of time that there was a tendency for upward revisions in the indices reported once the final numbers were later
  • The higher frequency weekly reporting was thus, prone to more statistical noise and sometimes provided       a misleading picture, so the trade- off was between the more frequent and less reliable data

and less frequent, but more reliable data. International practice for reporting CPI inflation is also on a monthly basis.

  • In view of this, the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 24th January, 2011, agreed to discontinue the weekly release of WPI for the commodities. Items under the groups primary articles and fuel and power with immediate effect. WPI shall, henceforth, be released on a monthly basis

5.6 MEASURES TO CHECK INFLATION

  • The handling of India’s inflation challenge consists of a careful combination of effort on the part of the RBI and government, including the Ministry of Finance and several other ministries, along with advisory support by the Inter-Ministerial Group (IMG) on
  • The IMG on inflation recommended several steps for improving supply chains from

the farmer to the consumer. It recommended amending the Agricultural Produce Marketing Committee (APMC) Acts in order to cut down on the large middleman price margin. It also recommended that one way to improve the supply chain and benefit farmers is to allow FDI in multi-brand retail.

  • The IMG argued that if this was permitted within a carefully crafted regulatory framework, there could be large gains for farmers and also for ordinary consumers.
  • The fiscal measure, the administrative measure and the monetary measure are the three different ways to contain inflation.

5.6.1 Fiscal Measures

  • Fiscal policy can be effectively employed to check inflation. Manipulation of   public expenditure, taxation and public debt can be used for this purpose.
  • Government can spend more money in the developmental

sphere to increase supply by improving productivity. Tax incentives can also be used to improve the supply situation.

5.6.2 Administrative Measures

  • The authority to take decisions on this front is with the executive branch of the
  • Under this measure, they
    • remove levy obligations in respect of imported
    • ban export of constrained materials.
    • maintain the central issue price, particularly for rice and wheat.
    • suspend future
    • allot rice and wheat under Open Market Sale Scheme (OMSS) and many

5.6.3 Monetary Measures

  • Monetary measures come under the purview of Reserve Bank of India (RBI), Through, the Monetary Policy review, RBI tries to control price rise and maintain economic growth and financial stability.

5.6.4 Role of RBI to Curb Inflation

  • Reserve Bank of India is the Central Bank of the country. Thus, it is armed with Monetary Policy with three objectives; controlling inflation, encouraging growth and financial
  • In India, Monetary Policy instruments typically consists of Repo-Rate, the Cash Reserve Ratio, SLR and some other occasional interventions, like Open Savings Bank Interest Rate Policy, which may or may not be construed as Monetary
  • When the RBI raises any of these rates (i.e., CRR, SLR, repo/reverse-repo, bank rate etc) money supply in economy is reduced. Reduced money supply reduces demand and thus, brings down inflation. Reducing the policy rates on the other hand leads to increased demand and higher
  • On the recommendations of the Narasimham Committee, RBI

reduced CRR and SLR in a phased manner and does not vary them often for the purpose of Monetary Policy. Repo and reverse-repo now the primary tools of the bank to control money supply and inflation.

  • RBI manages the exchange rates fluctuations to cope with the exchange rate sensitive
  • In this case, when RBI wants to devalue the rupee they may intervene in the foreign exchange market by using rupee to buy up foreign currency or conversely, if they want to revalue the rupee, they may intervene by selling off foreign exchange

UPSC Previous Year Questions :

  1. With reference to inflation in India, which of the following statements is correct? (CSE 2015)
    1. Controlling the inflation in  India is the  responsibility   of the   Government   of    India only
    2. The Reserve Bank of India has no role in  controlling    the inflation
    3. Decreased money circulation helps in  controlling the inflation
    4. Increased money circulation helps in  controlling  the inflation
  2. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’? (CSE 2015)
    1. The Reserve Bank of India
    2. The Department of Economic Affairs
    3. The Labour Bureau
    4. The Department of Personnel an
  1. Which one of the following is likely to be the most inflationary in its effect? (CSE 2013)
    1. Repayment of public debt
  1. Borrowing from the public to finance a budget deficit
  2. Borrowing from  banks to finance a       budget deficit
  3. Creating new money to  finance a budget deficit   Government

Borrows from Banks

  1. Consider the following statement :
  2. Inflation benefits the
  3. Inflation benefits    the    bond- holders. (CSE 2013)

Which    of    the    statements    given above is/are correct?

  1. 1 only
  2. 2 only
  3. both 1 and 2
  4. Neither 1 nor 2
  1. India has experienced persistent and high food inflation in the recent past. What could be the reason? (CSE 2011)
  2. Due to a gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
  3. As a consequence of increasing incomes, the consumption

patterns    of    the    people    have undergone a significant change.

  1. The food supply chain has structural

Which    of    the    statements    given above are correct?

  1. a) 1 and 2 b) 2 and 3
  2. c) 1 and 3 d) 1, 2 and 3
  1. Economic growth is usually coupled with (CSE 2011)
    1. Deflation b) Inflation
    2. c) Stagflation d) Hyper-inflation
  1. Which one of the following statements is an appropriate description of deflation? (CSE 2010)
    1. It is a sudden fall in the value of a currency against other currencies.
    2. It is a persistent recession in both the financial and real sectors of
    3. It is a persistent fall in the general price level of goods and services.
    4. It is a fall in the rate of inflation over a period of

ANSWERS :

  1. In the context of Indian economy, consider the following pairs: Term Most appropriate description (CSE 2010)
  2. Melt down — Fall in stock prices
  3. Recession — Fall in growth rate
  4. Slow down — Fall in GDP

Which of the pairs given above is / are correctly matched?

  1. a) 1 only b) 2 and 3 only
  2. c) 1 and 3 only d) 1, 2 and 3
  1. With reference to India, consider the following statements: (CSE 2010)
  2. The Wholesale Price Index (WPI) in India is available on a monthly basis
  3. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles. Which of the statements given above is/are correct?
    1. 1 only b) 2 only
    2. c) Both 1 and 2d) neither 1 nor 2

1.(c)   2.(c)   3.(a)4.(a)         5.(b)    6.(b)7.(c)   8.(a)    9.(b)

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