GS -3 Mains 2019-20 WriteToBeIAS.com CA RAHUL KUMAR … · 2019-11-15 · GS -3 Mains 2019-20 WriteToBeIAS.com CA RAHUL KUMAR 9045716803 Email : [email protected] 011-41561002

GS -3 Mains 2019-20 WriteToBeIAS.com CA RAHUL KUMAR

9045716803

www.writetobeias.com Email : [email protected] 011-41561002 Page 1 Online Classes for GS 3 Mains 2020-2021

LARGEST GS MAINS PAPER (i.e, PAPER 3) SIMPLIFIED by

CA Rahul Kumar & Team

“Get 130+ Marks in GS 3 with minimum efforts”

WHAT WILL BE THE DELIVERABLES ?

• Weekly four to five Online recorded Video classes on your personal computer dashboard and

Android and Iphone app

• One to one doubt discussion with faculty over phone /Whatsapp (Pre defined Regular Time slots will

be given for one to one and conference calls). Separate doubt sessions will also be conducted live for

all

• Pre-defined topic wise lecture plan

• Complete, relevant and effective printed & soft copy study material

• Sufficient handwritten class notes making

• Mindmaps

• 3 practice section wise tests and one comprehensive test paper at par with UPSC level

• Previous year question analysis and structure making

• Additional sessions may be held, if needed

APPROACH DURING CLASSROOM

• Question Answer Approach

• Maximum discussion and negligible dictation

• Conceptual Interlinking of topics

• Answer to most probable Analytical topics for mains exam

• From basic to applied level for every topic

• From conventional till recent updates on the topic

• Daily revision of previous class for long time retention

• Suitable attention to all areas (Both economy and Non economy) of syllabus considering exam

requirements & weight

• No need to refer any other reference book

• Classroom content will be unique and not just a compilation of common available resources

• You will remember lots of things from the lecture itself and will be able to deliver in the exam

Those students who have mismanaged their preparation in earlier years by thinking that GS 3 can be

covered by just reading current affairs or joining some GS test series will find our classroom suitable to

develop good perspective on every topic.

http://www.writetobeias.com/

mailto:[email protected]


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SOURCES THAT WE WILL COVER:

• Kaushik Basu, NCERTs , Uma Kapila, Mishra & Puri

• Updated current affairs since the last 3 years ( from the Hindu Indian Express, Business Standard and

PIB)

• Coverage of 2 years economic survey and budget, Yojna & Kurukshetra

• Economic Survey 2020 and Budget 2020 will be covered as and when they are released

• The Hindu, Indian Express, PIB, Business Standard

• NITI Aayog Strategy Document @75

• Relevant 2nd ARC reports like Crises management, public order etc

COURSE DETAILS : We have total two courses

How to get Admission into subscribe to course -

Click on the link given below and pay.

https://www.writetobeias.com/coursesdetails/53

You will get course option here.

Click on “Enrol Now”

Once you pay, within 24 Hrs you will get your e-learning platform login password separately

You will get recorded lectures and soft copy materials in your dashboard as per lecture plan

Video lectures will also be available on android app/iphone app (Link of such apps we will send to your

after admission)

COURSE NAME COMPLETE COURSE

Deliverables 350+ Topics from entire syllabus

No of lectures

70+ Sessions of 3 Hrs each

Time Duration Total 3 Months duration (You can watch lectures for one extra month)

Weekly lectures 4 to 6 sessions a week

Target Aspirants Appearing in Mains 2019 and Mains 2020 (Up-dations till Mains

2020 & 2021 will be provided after completion of the course)

Relevant for Who want to be 100% confident in all areas of GS 3

Both fresher and Senior players

Fee Rs 14,500



https://www.writetobeias.com/coursesdetails/53


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About the faculty

Mr Rahul Kumar is a Chartered Accountant. He appeared in UPSC Interviews thrice. He has been a faculty

in GS 3 and Economy in famous Delhi civil Institutes for many years. Lecture discussion and study material

will reflect his experience. He has experience of working in government organisations for more than 8 years.

He has deep interest & expertise in Indian economy, agriculture development and environmental & internal

security issues.

You can connect with him over WhatsApp at 9045716803 or drop an email at [email protected]

for any query/clarification regarding the course.

One more team member of equivalent level will be covering few areas like science and technology

Sample Videos links on our YouTube Channel

GS 3 IAS MAINS BEST STRATEGY https://www.youtube.com/watch?v=FqZWFpUsamc

GS 3 ONLINE COURSE DETAILS https://www.youtube.com/watch?v=YqZVES5Hp9M

DISINVESTMENT IN INDIA https://www.youtube.com/watch?v=7SPgnMXC1vY

INCLUSIVE GROWTH https://www.youtube.com/watch?v=toDhMoJiXXw&t=2202s

Listing of GS 3 topics for Mains 2020

SECTION 1 - MACRO ECONOMY

A. Issues related to growth & development in India

1. Indian Economy in British Era

2. Economy on Eve of Independence : Challenges & Features

3. Recent India's Growth Story

4. Indian Economy – SWOT Analysis

5. India vs China’s economy

6. Late Converger Stall : Economic Survey 2018

7. Green economy

8. NITI Aayog vs Planning commission

9. Financial Inclusion : Evolution since independence

10. Pradhan Mantri Jan-Dhan Yojana (PMJDY)

11. Sustainable Development Goals (SDGs)

12. Savings and Investment rates slowdown : factors and solutions

13. Inflation and Food inflation

B. Public finance & Fiscal Policy

14. Long Term Capital Gains on equity shares

15. Arvind Modi task force on Direct Tax Code




https://www.youtube.com/watch?v=FqZWFpUsamc

https://www.youtube.com/watch?v=YqZVES5Hp9M

https://www.youtube.com/watch?v=7SPgnMXC1vY

https://www.youtube.com/watch?v=toDhMoJiXXw&t=2202s


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16. How to increase tax to GDP Ratio/Tax base

17. GAAR

18. Base Erosion and Profit Shifting

19. Tax Terrorism in India

20. Flat Income Tax Rate in India

21. Agricultural Income Tax in India

22. GST - Two years Analysis

23. E Way Bill - critical Analysis

24. National Anti-profiteering Authority - Analysis

25. New FRBM Act

26. Fiscal Consolidation

27. States finances & fiscal deficits

28. 15th Finance Commission Controversy

29. Outcome Budgeting

30. Gender Budgeting

31. Interim Budget 2019 analysis

32. Public debt management agency

C. Inclusive Growth , Poverty, Employment and Skill development

33. Meaning, Concept and Elements, Challenges & Issues arising from it

34. Balanced Regional Development: Transforming Aspirational Districts

35. Universal Basic Income

36. Demographic Dividend

37. Poverty : Reasons , Government initiatives and solutions for poverty

38. Inequality in India

39. Unemployment : Reasons , Government initiatives and solutions for poverty

40. New problem of under-employment

41. Fixed Term Employment

42. Female Labor force participation rate

43. Informal sector employment trends & challenges

44. Skill India

45. Start up & Stand Up India & Entrepreneurship

D. Investment Models & Resource Mobilization

46. Public Private Partnership : BOT, Hybrid Annuity Model

47. FDI policy in India : Evolution and reforms recently

48. FDI vs FII – Comparative Analysis

49. FPI New Norms

50. Crowdfunding

51. Recent Savings and Investment Trends

52. Municipal Bonds

53. Demonetization – critical analysis

54. Cashless economy

55. Green Finance

56. Masala Bonds

E. Industrial Policy In India : Changes since independence

Evolution of India’s industrial policy




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57. Phases of Industrial development - Foundational Phase till 1966 (Mahala Nobis strategy), Phase

of recession and retrogression between 1966-1979, Phase of revival in 1980s till 1990

58. New Economic Policy 1991 and New Industrial policy under the policy of liberalization,

privatization and globalization

59. Third Economic Reforms

60. Roles of private sector and public sector in Indian economy

61. Disinvestments – concept, issues and suggestions

62. Strategic Disinvestments of PSUs

63. Problems of Public Sector

64. Main constraints in the industrial development of India

65. Make in India and NIMZs

66. Industrial Revolution 4.0

67. New E-Commerce Policy

68. Labor Reforms – 4 labor code

69. Ease of doing business

70. MSMEs – Challenges and Solutions

71. National Financial Regulatory Authority (NFRA)

72. New IPR Policy, 2016

73. PM Mudra Yojana

74. Special Economic Zones (SEZs)

75. Shell Companies

76. Electronics Industry in India

77. Tourism Sector

78. Pharmaceutical Sector in India

79. Handloom industry (Yojana)

80. Textile industry

81. Footwear industry

82. Defence manufacturing in India

F) Infrastructure – Features, Types,

83. Telecom Sector – issues and challenges ; Draft National Digital Communications Policy – 2018

84. Urban Development, Urbanization 2.0,

85. Smart Cities, “SAHI” approach to urban mobility/ urban transport

86. Rural Infrastructure in India

87. Infrastructure financing

88. Digital India

89. Logistics Sector

90. Minerals licensing and exploration

Railways :

91. Issues in Railway Sector

92. Freight segment : Dedicated Freight Corridor

93. Rail Safety

94. Railway Privatization

95. High Speed Rail Project, National Rail Plan 2030, Various Committees

96. New Metro Policy 2017

Road Sector

97. Road Transport – issues and challenges

98. Bharatmala




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99. National Electric Mobility Mission Plan 2020

100. National Auto Policy 2018

Water Transport –

101. Jal Marg Vikas Project (Inland Waterways)

102. Sagar Mala Project

103. Shipping sector

104. Costal shipping

105. Costal employment Zones

106. RO-RO Service

107. Dry ports

Air Transport :

108. Civil Aviation Sector – Issues and Solutions

109. UDAN Scheme 2 & 3

110. Civil aviation Policy 2016

111. Air India issue

112. Multi Modal Logistics Park

Energy Security

113. Status, Policies, Challenges

114. Draft National Energy Policy 2017

115. National Biofuel Policy 2018

116. Energy efficiency (STRATEGY)

Coal & Power Sector

117. Power Sector - issues and Policies

118. DISCOM Reforms – UDAY Scheme

119. Coal Sector – issues and analysis

120. Privatisation of coal mining sector

121. Rural electrification : DDU Gram Jyoti Yojna, Saubhagya Scheme, KUSUM Yojana

122. Nuclear energy programme

Oil and Gas Sector

123. New Hydrocarbon and Exploration Policy 2016

124. Strategic oil reserves

125. Natural Gas – issues and suggestions

126. Affordable Housing for All

127. Real Estate Sector : RERA Act, 2017, Real Estate Investment trust (REIT)

128. Rural Development : Bharat Nirman, Smart Villages, PURA Scheme

Renewable Energy : Policies and Challenges

129. Solar Energy, Solar Parks

130. National Solar Wind Hybrid Policy

131. International Solar Alliance

132. Shale Gas

133. Methanol Economy

G. Money & Banking

134. NPA or Twin Balance Sheet crises – Reasons, Govt initiatives and Suggestions

135. Project SHASHAKT analysis, Willful Defaulters, ICA, PCR, 12 Feb Circular

136. Banks Recapitalization : good or bad

137. Banking Reforms : Mission Indradhanush

138. Banks merger : good or bad

139. RBI vs Government controversy




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140. Banks privatization : good or bad

141. Public Sector Asset Rehabilitation Agency (PARA) and Bad Bank

142. The Fugitive Economic Offenders Act, 2018

143. Insolvency and Bankruptcy Code, 2016

144. India’s payments banks - Analysis

145. Bitcoins/Cryptocurrency

146. IL&FS Crisis and NBFC Sector

147. PNB Banking Fraud : LOU and SWIFT

148. The Banning of Unregulated Deposit Schemes Bill, 2018

H) External Sector

149. Globalization & associated issues

150. Trade War & Protectionism

151. Currency War

152. Rupee exchange rate fluctuations

153. WTO New issues – Delhi meet

154. India‘s Export Promotion initiative

155. General system of preferences (GPS) issue

156. MFN status analysis

SECTION 2 : AGRICULTURE

1. Agriculture during planning process

2. Role of agriculture in Indian Economy

3. Increasing agriculture productivity & Modernizing Agriculture

4. Doubling Farmer's Income, Ashik Dalwai Committee

5. Farmer's Suicides issue

6. Loan Waivers

7. Toxic Farming

8. Organic Farming and Zero Budget Natural Farming

9. Evergreen Revolution

10. Major crops cropping patterns in various parts of the country,

11. National Year of Millets 2018

12. Different types of irrigation and irrigation systems;

13. PM Krishi Sinchayi Yojana Analysis

14. PPP in Micro Irrigation , Soil Health Card Scheme

15. Agricultural Credit – Banks/ RRB/ NABARD/ KCC & other angles

16. Agricultural Finance – Features/ Criteria & Need, Sources/ Problems & Measures

17. Agriculture – Crop Insurance in India – Features & Schemes

18. PM Fasal Bima Yojna

19. E-technology in the aid of farmers

20. Storage, transport and marketing of agricultural produce and issues and related constraints

21. APMC and E-NAM,

22. Agri Export Policy 2018

23. Contract farming

24. Sugarcane pricing

25. Model Agricultural Produce and Livestock Marketing Act 2017

26. Technology missions

27. Economics of animal-rearing – importance, challenges

28. Dairy Sector




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29. Poultry Sector

30. Silk Sector

31. National Policy on Marine Fisheries

32. Fisheries Sector

33. Sweet Revolution

34. Pink revolution

35. Livestock sector and Rastriya Gokul Mission & Rashtriya Kamdhenu Aayog

36. Agri R&D

37. Agricultural extension (Krishi Vigyan Kendras)

38. Issues related to direct and indirect farm subsidies (Power, Irrigation, Price, Credit subsidies)

39. PM KISAN Scheme – Critical analysis

40. Fertilizer sector reforms : DBT etc

41. Minimum support prices (PM AASHA Yojana & Price deficiency payment system

42. Public Distribution System- objectives, functioning, limitations, revamping;

43. PDS and Aadhar, National Food Security Act,2013

44. Issues of buffer stocks

45. Global Hunger Index and Nutritional Security; POSHAN Abhiyaan

46. Food processing and related industries in India- scope and significance

47. Upstream and downstream requirements, supply chain management.

48. PM Kisan Sampada Yojna

49. Land Reforms in India – Objectives, Phases, Success and failures

50. Land leasing law,2016

51. National Land records Modernization Program

52. Land acquisition Act 2013

53. Land Bank

54. Draft Pesticides Management Bill 2017

55. GM Crops and GM Mustard

56. Sustainable Agriculture

57. Operation Greens

58. GOBARDHAN Scheme

59. Agri Future Markets

60. Sugar Industry

61. Farmer Producer organizations

62. Draft Pesticide Management Bill 2017

63. Agriculture Futures

64. National Bamboo Mission

65. Climate Smart Agriculture

66. Feminization of Agriculture

The above list will further be updated with topics emerging between Now onwards till Mains

2020 and Mains 2021

OPICS LIST FOR BELOW GIVEN AREAS WILL ALSO BE GIVEN ONCE

YOU JOIN COURSE

SECTION 3 : ENVIRONMENT

SECTION 4 : INTERNAL SECURITY




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SECTION 5 : SCIENCE AND TECHNOLOGY

30 SAMPLE PRACTICE QUESTIONS FOR MAINS 2020

All such and 200 more questions will be covered in detail in the classroom

MACRO ECONOMY :

1. There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial

development, manufacturing and exports. Recognizing this potential, the whole instrumentality of

SEZs requires augmentation. Discuss the issues plaguing the success of SEZs with respect to

taxation, governing laws and administration

2. While we found India’s demographic dividend, we ignore the dropping rates of employability. What

are we missing while doing so? Where will the jobs that India desperately needs come from?

Explain.

3. Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product(GDP) in

the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of

increasing the industrial growth rate?

4. In a globalised world, intellectual property rights assume significance and are a source of litigation.

Broadly discuss various advantages that National IPR Policy,2016 can offer and what are the major

obstacles that are being faced on the path of its success.

5. ‘Severe underemployment’ and not unemployment is a more serious problem in India. Discuss with

logical arguments

6. Inequality in India poses a multitude of threats. What are the causes of Inequality in India. Explain

various adverse impacts of the inequality. Give some suggestions to overcome this problem.

7. Normally countries shift from agriculture to industry and then later to services, but India shifted

directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis

industry in the country? Can India become a developed country without a strong industrial base?

AGRICULTURE

8. Establish the relationship between land reform, agriculture productivity and elimination of poverty in

Indian Economy. Discussion the difficulty in designing and implementation of the agriculture

friendly land reforms in India.

9. What are the reasons for poor acceptance of Aadhar based PDS System? How the Aadhar based PDS

System will be helpful for effective distribution of cheaper foodgrains?

10. Among several factors for Agriculture sectors’ potential growth, improving agricultural productivity

is the most effective one. Do you agree? What are the other factors available for growth potential of

agriculture sector ?

11. “Apart from the agriculture sector, there needs to be increased focus on agriculture-allied sectors to

realize the goal of doubling farmers’ income.” Examine. What steps has the Government taken to

promote allied activities in this sector?




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12. ‘The fertilizer industry has been instrumental in making India self-sufficient in food and agricultural

produce but at the same time it is frequently criticized for straining country’s fiscal deficit’. In light

of this statement, do you think that the recent reforms could help in reviving the sector? Examine

with respect to

the stakeholders involved.

13. Food management and distribution includes the entire set of activities from farm to fork. There are a

variety of challenges in this process. Discuss this statement. What are the recent government

initiatives in this context. Discuss.

ENVIRONMENT

1. The Namami Gange and National mission for clean Ganga (NMCG) programmes and causes of

mixed results from the previous schemes. What quantum leaps can help preserve the river Ganga

better than incremental inputs?

2. There is also a point of view that Environmental impact assessment (EIA) studies in India not only

impeded the progress of various development projects but also have been ineffective in achieving its

intended objectives. Critically examine.

3. “When it comes to the debate of economic development versus environment, there is an inherent

tendency among developing countries to tilt towards economic development”. Discuss the statement

in the context of India's ranking in Environmental Performance Index, 2018.

4. India was one of the birthplaces of the Green Revolution that helped to bring food sufficiency, but

now faces a new set of challenges due to climate change. Illustrate with examples the impact of

climate change in Indian agriculture and suggest solutions.

DISASTER MANAGEMENT

5. Describe various measures taken in India for Disaster Risk Reduction (DRR) before and after signing

‘Sendai Framework for DRR (2015-2030)’. How is this framework different from ‘Hyogo

Framework for Action, 2005’? (250 Words, 15 Marks)

6. Drought has been recognised as a disaster in view of its party expense, temporal duration, slow onset

and lasting effect on various vulnerable sections. With a focus on the September 2010 guidelines

from the National disaster management authority, discuss the mechanism for preparedness to deal

with the El Nino and La Nina fallouts in India.

INTERNAL SECURITY

7. The scourge of “Naxalism” is a grave challenge to national security. What are the major reasons

behind its spread in Urban Areas of India? What solutions do you suggest to curb this growing

menace?

8. Data security has assumed significant importance in the digitized world due to rising cyber-crimes.

The Justice B. N. Srikrishna Committee Report addresses issues related to data security. What, in

your view, are the strengths and weaknesses of the Report relating to protection of personal data in

cyber space? (250 Words, 15 Marks

9. India’s proximity to two of the world’s biggest illicit opium-growing states has enhanced her internal

security concerns. Explain the linkages between drug trafficking and other illicit activities such as




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gunrunning, money laundering and human trafficking. What countermeasures should be taken to

prevent the same? (250 Words, 15 Marks)

10. Violation of data privacy is emerging as a serious problem in India. Giving suitable examples,

analyse various challenges in ensuring data privacy in India. Describe various available mechanisms

and techniques at present to ensure the data privacy in india.

11. Border management is a complex task due to difficult terrain and hostile relations with some

countries. Elucidate the challenges and strategies for effective border management.

12. BCIM Corridor is a double edged sword and benefits accruing to it could be counter balanced by the

challenges it can pose. Do you agree with the statement? Critically examine

13. Illegal Immigration should be given priority in the foreign policy as it is not only a political issue but

also a security issue. Critically analyse the statement and list out measures to deal with the problem.

14. Coastal security is an indispensable part of our National Security. In light of this statement,

enumerate the steps taken to strengthen coastal security in India. Also examine the shortcomings that

continue to undermine coastal security, and suggest remedial measures. (15 marks)

S&T

15. Stem cell therapy is gaining popularity in India to treat a wide variety of medical conditions

including Leukaemia, Thalassemia, damaged cornea and several burns. Describe briefly what stem

cell therapy is and what advantages it has over other treatments?

16. Scientific research in Indian universities is declining, because a career in science is not as attractive

as our business operations, engineering or administration, and the universities are becoming

consumer oriented. Critically comment.

17. The development of Artificial Intelligence (AI) is increasingly becoming a nation a security concern

in recent years. In light of this statement, discuss the merits and demerits of the use of AI for military

purposes. (10 marks)

SAMPLE PRINTED NOTES

Topics covered below

1) India’s Leapfrog to Methanol Economy (Economic Development)

2) Indian vs Chinese economy (Economic Development)

3) Fertiliser Subsidy reforms (Agriculture)

4) Land reforms in India (Agriculture)

5) Bharat Stage IV to VI (Environment)

6) Money Laundering (Internal Security)




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India’s Leapfrog to Methanol Economy

Table 1 Prelims Booster

A) Methanol Economy : means the replacement of fossil fuels

with methanol as means of energy storage, transportation fuels and

feedstocks of chemical products

B) Need for Methanol Economy in India:

• Energy security: India is the 6th highest consumer of

petrol and diesel in the world

• Environmental concern: India is third highest energy

related CO2 emitter country in the world.

• Current Account Deficit: India’s crude import bill stands

at almost 6 lakh crores

• Inflation: The price of fuel has multiplier effect

C) Applications of Methanol in various sectors of Indian

Economy:

1) Transportation: Methanol blended with gasoline and

diesel or complete substitution + railway engines can run

on methanol/DME blends + methanol and DME powered

ships → cost cutting and efficiency increase

2) Energy: India → Huge Coal reserves ; Biomass generated

; Stranded & Flared gases → alternate feedstock and

fuels→ India’s 10% reduction in import dependence of oil and

gas by 2022.

3) Manufacturing: methanol compatible engines under Make in

India → FDI investments → employment

4) Marine sector: liquid form → no SOx or NOx ; cheaper and

cleaner than LNG and Bunker / Heavy Oil. → meeting the

stringent emission regulations by the IMO → reduce the costs.

5) Electricity power generation: as a turbine fuel

6) Agriculture: Biomass like rice straw or Bamboo in North East

→ feedstock → additional income to the farmers

7) Telecom Towers: 2% of diesel consumption → can be replaced

8) Chemicals sector: Methanol → producing various chemicals

like formaldehyde, acetic acid and olefins → can be exported

9) Clean cooking fuels: Ujjwala Yojana (PMUY) → LPG connections→ Methanol or DME blending with LPG or the

complete substitution of latter through former can gradually displace LPG imports

10) Swachh Bharat: opportunity for India to use its landfills to convert it into methanol and avoid problems such as toxins

leaching into the soil and release of GHG emissions etc

D) Global Developments

• Methanol is being actively pursued by China, Italy, Sweden, Israel, US, Australia, Japan and many other European

countries.

• 10% of fuel in China in transport Sector is Methanol. China alone produces 65% of world Methanol and it uses its coal to

produce Methanol.

• The Technology has acquired commercial maturity and countries like Iceland are producing in meaningful quantities

already.

• The United States ran several methanol programs, especially in California from 1980 to 1990 for the conversion of

gasoline run cars to methanol blended fuels

• Israel, Italy have adopted the Methanol 15% blending program with Petrol.

Methanol (CH3OH) It is a single carbon compound that can be

produced from coal, natural gas, biomass

DME and bioDME

Primarily produced by converting hydrocarbons via gasification to synthesis gas (syngas). Synthesis gas is then converted into methanol

in the presence of catalyst (usually copper-based), with subsequent

methanol dehydration in the presence of a different catalyst (for example, silica-alumina) resulting in the production of DME

Alternative fuel due to the advantages

• Scalable and sustainable fuel as can be produced from a variety of

feedstocks.

• Efficient and can be cent percent renewable.

• Less Infrastructure costs

• Emits lesser NOx and Particulate matter (PM) than gasoline and

produces no SOx as there is no sulphur in methanol.

• Can be blended (or be completely substituted) with gasoline to use as a

transport fuel

DME and bioDME

• commonly used as a replacement for propane in liquid petroleum gas

(LPG)

• a viable and clean diesel alternative

• can also be blended with LPG

• a non-toxic compound and is safe to handle




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• Methanol is seen by the world as the “Enduring Energy Solution known to Mankind”

D) Status of Methanol in India:

• Presently at a nascent stage in production and usage but huge potential in both

• Methanol imports is meeting 90% of India’s methanol requirement → because cheaper for India to import vs domestic

production → considerable forex outgo

• India imports 99% of its methanol from Iran and Saudi Arabia who produce it from natural gas

• India does not have a commercial coal to methanol plant despite having large coal reserves

• India is producing all of its methanol from imported natural gas

• The Government is likely to go ahead with a target of 15% blending by methanol/DME in gasoline/diesel by 2022

• Recently, Coal India Limited (CIL) planned to set up a coal based methanol plant in West Bengal

• The Namrup-based Assam Petrochemicals Limited (APL) rolled out the country’s first methanol- based cooking fuel

project-

• ‘Green and Clean Fuel Pilot Project on Methanol Cooking Stove’. The project has been promoted by NITI Aayog.

E) NITI Aayog's Plan for Methanol Production in India:

• India is producing all of its methanol from imported natural gas since domestic production is not economically viable at

present. → it must use abundant domestic high ash coal to make it economically viable → Commercial coal to methanol

plants need to be set up wherever necessary.

• It is estimated that a 1600 tons per day of methanol plant will require a capital expenditure of ~INR 1200 Cr which

would be able to produce methanol at INR 17- 19 per liter which is comparable with the cost of imported methanol.

Whereas, presently, the per liter cost of methanol production in India is INR 25-27 or even more depending on the

volatility in the price of imported natural gas.

• Biomass/municipal solid waste and flared natural gas can also be used for methanol production, but the continuous

availability of latter would be a challenge.

F) Challenges:

• Water Intensive → 20 cubic meters freshwater for 1 ton coal-based methanol → wastewater.

• leakage and explosion → loss of life and property.

• Vehicle’s damage → rubber or plastic components + corroding metals such as aluminum, magnesium, zinc

• During the process of making methanol from coal, a large amount of CO2 is emitted.

• Technology to co-generate power in methanol plants requires further refinement

• For blending more than 15% of methanol, internal combustion engines changes in the engine design are required.

G) Way Forward:

1. Create an innovation fund → support the R&D activities → a demonstration coal to methanol production plant

2. Have sufficient domestic methanol production capacity so that user industries are assured of supply

3. Simultaneous programs for the development of

• flexi-fuel vehicles to run on methanol/DME fuel blends

• Methanol/DME cookstoves

• Converting diesel powered railway locomotives to methanol/DME based engines.

4. Explore possibility of setting up a manufacturing facility for methanol/DME in Iran or Qatar as these countries can

provide the natural gas at very low prices

5. Import Methanol/DME for its direct application or for further conversion to chemicals like olefins as it is likely to

be economically advantageous rather than importing crude

6. Set up a mega coal based complex for production of power, methanol and fertilizer in an integrated manner

7. Methanol Blending Program with all possible fossil fuels can be implemented on an early basis

MAINS QUESTION :

With growing energy needs should India work on exploring methanol production and application ? Discuss the




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facts and fears associated with Methanol economy in India(250 Words, 15 Marks)

India vs China’s Economy

Past to Present

• In 1985, GDP per capital for India and China was around $293 per person.

• In 2017, as a World Bank report, India’s per capita has managed to reach $1,942, while China’s GDP per capita has

expanded to $8,827.

• In 2017, India became the sixth largest economy with a GDP of USD 2.59 trillion while China was the second largest

with a GDP of USD 12.23 trillion, as per World Bank data.

• Presently, India and China on an average have

same population rates

identical levels of unemployment

current GDP rates (highest among the world).

However, China’s economy is five times larger than India’s

Reason /factors for Difference in the Size of two Economies today

China went through Cultural Revolution and the Great Leap Forward thus adopting an authoritarian and capitalistic model,

while India followed a socialist economic model with state control. This model difference is one the key reasons China is in a

better shape than India. In addition to this several other factors are listed below in detail -

Factor China India

Politics

Authoritarian political system with The

Chinese Communist Party (CCP) governs

with minimum barriers → increases ease of

policy implementation → rapid development

on a large scale.

e.g. The Three Gorges Dam, which is the

world’s largest hydropower project has been

building for almost a decade. It has displaced

more than 1.2 million population, and flooded

1,350 villages, 140 towns, and 13 cities in

total. However, dam provides → Job

opportunities → Clean energy

India is governed through a complex

democracy. It has a federal parliament

with regional assemblies. → slows down

the rate of development due to the delay in

decision making process → reducing the

ease of implementation of polices

e.g. It took Indian parliament 16 years, to

pass a GST bill in 2017

High corruption levels and a politically

divided system also adds to delays in

projects.

Industrial

Focus

Backyard industrialization → MSME Focus

→ Labor intensive →Jobs → Balanced

regional development

Mahalanobis & Socialistic Model →Heavy

Industries in Public Sector focused →

Imbalanced regional dev. + Failed PSUs




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Economic

Reforms

Started in 1980s → Early mover advantage →

Private investment from west

Started in 1991 as a result of crises

Political and

Governance

Reforms

Great Leap Forward 1958 → Capitalistic

Model

Cultural Revolution 1966

1950 Constitution of India → Socialistic

Pattern

Green and Industrial revolution impacts

remain limited)

Openness of

the economy

SEZ Model → Export orientation → Foreign

exchange earnings

Economic planning → Self-sufficiency

objective → Inward looking strategy → No

exports but high imports → 1991 Crises

Geographical

reasons

Majority land is unproductive →

Industrialization preferred over agriculture →

high economic growth

Instability in focus over Agriculture &

Industry → Neither could develop properly

→ Finally in 1991 onwards Service sector

dominates → Limited jobs

Productivity

• China has a better railways and roads

system which increases speed of

transportation.

• China invested heavily in universities and

skill development programs. The country also

focused on creating jobs in labor-intensive

sectors for its large population such as in

garments, textiles, assembly and light

engineering.

World Economic Forum’s Global

Competitiveness Report → India lags

behind China in almost all infrastructural

category.

Lack of investment in infrastructure is

estimated to reduce India’s GDP growth

annually by 2 percent.

Urbanization A high level of urbanization has occurred in

China as opposed to India. 58 percent of

China resides in the city.

There is a strong evidence for the positive

relationship between urbanization and

growth of a nation.

Today only roughly 37 percent of Indian

live in cities

Both the countries saw a shift of

employment from agricultural sector to

service and other non-farming sectors, as

more people moved to cities in search for a

higher wage. This transition happened

faster in China than in India.




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Indian Economy strengths China’s strengths

• Exports and software exports have doubled

in the last couple of years, even though

export-to-GDP ratio is still low.

• India has seen a huge jump in foreign

investment (over $21 billion)

• India’s young population is estimated to

contribute to a high rate of personal savings.

• Today China is a $12.5 trillion economy,

the second largest in the world.

• China’s trade is six times larger than India’s

trade. In 2007 increase in China’s trade

levels were around $433 billion where

greater than India’s total trade.

• China’s trade is the second-third largest in

the world, while India lags behind with only

1 percent of world trade.

• China’s Manufacturing Productivity is

1.6 times than that of India

• Inflation in China is 1/6th times of Inflation

in China

Weaknesses of Chinese Economy

• Moving in the direction of a more reliable

growth strategy which relies less on exports

and majorly on domestic demand

• Regarding Entrepreneurship : China →

communist country → State run enterprises

are not efficient & not innovative. The

Indian industry is based on innovative

enterprises. Given the competitive nature of

the world economy, the Indian industry

stands a better chance at success in the

future

• One Child Policy in China → a

demographic time bomb → there are more

people out of the workforce than in it. On an

average, every Chinese worker is expected

to pay for the costs of at least two Chinese

retirees. (India, on the other hand, is facing

a demographic dividend)

Brightful future for India

• Today India is the fastest growing economy in G 20. Based on OECD report of 2019, India’s GDP is said to be around

7.5 percent by 2020, versus being 7.25 percent in 2019

• China’s economy is estimated to witness a cool down due to global trade

tensions. China’s economy is estimated to be around 6 percent by the year

2020, according to a Paris based think tank.

• India’s economy clocked at a low of 6.6 percent in October-December

period in 2018. While China according to Global Economics Prospects

report 2019, is projected to witness a growth of 6.2 in the years 2019 and

2020, and a 6 percent growth in 2021.




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• Based on the assumption that rapid growth eventually slows down, China’s time span of high growth may soon run its

course, while India’s experience if more recent.

• As per former RBI Governor, India will become bigger than China eventually as China would slow down and India

would continue to grow. So India will be in a better position to create the infrastructure in the region which China is

promising today.

Growth lessons India can learn from China

• An increased investments and incentives in labor-intensive industries to create more job opportunities. In the past 25

years, labor-intensive industries have suffered in the form of excessive regulations and tax. → In order to increase job-

creating, removal of restrictive labor regulations → India Brought Shramev Jayate Reforms

• Increase investment in infrastructure to account for 6.5 percent of the total GDP and release investment tools by

divesting in infrastructure assets which are state owned.

• Enhance productivity of ports, improve conditions of railways and highways, and reduce power theft

• Allow private sector to investment in education in order to improve skills and human resources.

• Invest in new cities, to promote urbanization which will ease the delivery of civil services to raise the standard to living

for the population.

• De-reserving goods for medium and small enterprises to make them grow bigger and faster

The Way Forward

India India’s economy will continue to grow if economic reforms continue to grow and are stretched to large-scale structures.

Factors that will help in India’s potential growth

High domestic demand

India’s demographic dividend is considerably larger than China’s

India’s 60-year-old history of democracy provided it a solid foundation for adaptability and stability.

New income support measures for framers

fiscal and quasi-fiscal stimulus

Structural reforms like GST, Demo, IBC

India vs. China: Is There Even a Comparison ?

China’s Economy is Four Times Larger Than India’s Economy : The GDP of India is close to $1.5 trillion. At the same time, the

GDP of China is close $7 trillion. The economy of China is at least 4 times as big as the economy of India. This means that even if

China grows at the rate of a meagre 1.5% and India grows at a rate of 7%, the Chinese economy would have added the same

amount in output as the Indian economy would have!

Comparing the GDP growth rates of India and China is therefore a pointless exercise. China’s growth rate has been consistently

higher than India’s growth rate over the past three decades or so. India has barely overtaken the Chinese growth rate for a couple

of quarters. Only if India can continue to beat the Chinese growth rate by a huge margin for the next two to three decades, does

India stand a chance of overtaking the Chinese economy.

RECENT NEWS AND ITS ANALYSIS

In 2016, NITI Aayog Chairman Amitabh Kant projected that India would become a $10-trillion economy by 2032.

‘The World in 2030’ report by HSBC has stated India’s economy would grow to $5.9 trillion by 2030 from an estimated $2.8

trillion at present.

Firstly, Despite India clocking a higher economic growth rate than China, the gap between the size of the two economies will

further increase by 2030. China will overtake the US as the world’s largest economy, and India will jump four notches to become

the world’s third-largest.




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Secondly, India will be outperformed by neighbor Bangladesh, which is expected to be the top-performing economy in terms of

growth rate by 2030.

Thirdly, despite decent economic growth, India’s citizens will not get rich at the same pace as those of some neighbouring and

other lower-middle-income countries. (At present, an average Chinese citizen earns almost $7,900 more than an Indian. But by

2030, the per-capita income gap between the two nations could widen to $13,000)

Fertilizer Subsidy – Issues & Refroms

Introduction

Fertiliser use has seen rapid expansion and intensification in India and in other parts of the world with the

spread of the Green Revolution technology. With the scope for raising production through the expansion of

cultivable land exhausted, fertiliser will continue to play a key role in meeting the future requirement of

food, feed and fibre. Therefore it is important that fertiliser is used judiciously and optimally

What is fertiliser subsidy?

• Fertilizer subsidy is the difference between the holding price of fertilisers and the price at which

fertilisers are made available to consumers.

• For sustained agricultural growth and to promote balanced nutrient application, the fertilisers are

made available to farmers at affordable prices.

• Financial support is also given on both indigenous and imported urea.

Need

• In India per hectare Consumption around (around 146 Kg) is far lower than developed countries.

• Indian Soils are deficient in Nitrogen and Phosphorus

• Fertilizer can most effectively be used with ample water. So rainfed areas (deprived of

irrigation) constitute 70 % of agricultural land and still they use only 20% of national Fertilizers

consumption. On other hand Rabi crops are dominantly produced in Irrigated areas, so they

consume about 66% of fertilizers while their share of total agri output is 33%

• India meets its 80 % requirement of Urea (N), while it is heavily dependent on Imports for its

potassium (K) and phosphorus (P) fertilizer requirements

• As per Eco Survey 2019 → For the small and marginal farmers, the costs of fertilisers are

key determinants of profitability of farming.

Present status

• Fertiliser accounts for large fiscal subsidies (about 0.73 lakh crore

or 0.5 % of GDP), the second-highest after food, according to

Budget 2019-20.

• There are 3 basic types of fertiliser used- Urea, Diammonium

Phosphate (DAP), and Muriate of Potash (MOP).

• Of all the fertilisers, urea is the most produced (86%), the most

consumed (74%), and the most imported (52 %).

• Urea is the most physically controlled fertiliser, with 50% under

the Fertiliser Ministry’s movement control order compared with




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20% for DAP and MOP.

• Urea also receives the largest subsidies, in outlay terms (accounting for nearly 70% of total fertilisers

subsidy)

• Per kg subsidies on DAP and MOP fertiliser are fixed- they do not vary with market prices.

• Imports of DAP and MOP are also not controlled.

How fertiliser subsidy is followed in India

• A PoS machine is installed in every fertiliser godowns. It capture the buyer’s identity based on

Aadhaar biometric authentication, with the quantities purchased.

TWO PROPOSED MODELS Two models of DBT are being considered to make fertiliser subsidy disbursal more

targeted.

• Under the first, a ‘wallet’ will be created for each farmer where the subsidy amount will be deposited for

release to the manufacturer or trader (in case of imported fertilisers) at the time of actual purchase.

• The other option is the farmer will pay the market price upfront and promptly receive the subsidy amount in

his/her Aadhaar-linked bank account.

Govt policies

• Nutrient Based Subsidy scheme 2010: applicable to 22 fertilisers (other than Urea) for which MRP

will be decided taking into account the international and domestic prices of P&K fertilisers, exchange

rate, and inventory level in the country. It aims to

◦ ensure that adequate quantity of P&K is made available to the farmers at statutory controlled

price.

◦ ensure balanced use of fertilisers, improve agriculture productivity, promote growth of

indigenous fertiliser industry and to reduce the burden of subsidy.

• New Urea Policy 2015: focusses on making the domestic urea energy efficient and reducing the

subsidy burden.

• Neem Coated Urea (NCU): mandatory 100% production of NCU. Benefit includes-

◦ Slow down the dissolution of Urea into soil, resulting into less urea requirement.

◦ Stop the illegal diversion of urea for non-agricultural usages such as ingredients in chemical

industry, explosives, etc.

• Gas Pooling: pooling of Domestic Gas with Re-Gasified LNG which is imported. This would help

provide natural gas at uniform delivered price to all natural gas grid connected Urea manufacturing

plants.

• Removal of minimum production criteria for manufacturers of Single Super Phosphate (SSP)

making them eligible for subsidy irrespective of quantity of SSP produced and selling for agriculture

purposes.

• Soil Health Card: Farmers can get their own customised requirement of fertiliser in order to avoid

irrational use of it.

RECENT REFORM - Cabinet Committee on Economic Affairs has raised the subsidised prices of

sulphur-based fertilizers.

The move is aimed at discouraging rampant use of NPK fertilisers, which impacts soil quality



https://www.livemint.com/Politics/oGQdwoKQrQ1xEt0GwE7WaK/India-likely-to-overshoot-fertiliser-subsidy-bill-by-42-bi.html


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Issues and challenges

• Subsidy is paid to the companies only after the purchase of fertiliser by the farmer. In other words,

the subsidy is still getting credited to the company and not the farmer. In that sense, it isn’t direct

benefit transfer (DBT)

• Fertiliser subsidy has become a game of only three chemicals- NPK (nitrogen, phosphorus and

potassium).

• There are huge discrepancies in the usage of fertiliser. In states like Punjab, the ratio of NPK usage

is 61:19:1 against ideal 4:2:1

• In 1950, with the use of less NPK, the yield was more. Now, with the use of more NPK, lesser yield

is being produced.

• Government is selling compost at a particular price and same is the rate for urea so this would not

push the farmers towards organic farming.

• These subsidies will only help fertiliser companies to sustain their business but in the long run farmer

input costs will continuously increase with inversely proportional output rates.

• Different inputs – urea, phosphatic and potassic fertilisers – have different rates of subsidies.

• It would be premature to accept that all the farmers would be able to buy their requirements of

fertilisers at market rate and wait for 15 days or a month to get the subsidies.

• Fertilisers encourage urea overuse, which damages the soil, undermining rural incomes,

agricultural productivity, and thereby economic growth.

• Fertiliser subsidies are generally criticised because they are perceived to be far from universally

distributed and concentrated on relatively few producers, mainly large farmers.

• As per Economic Survey 2015-16: Distortions in urea are the result of multiple regulations. These

distortions feed upon each other, and together create an environment that leads to a series of

adverse outcomes.

◦ Firstly, urea is only subsidised for agricultural uses. Subsidies like this violate the One

Product- One Price principle. Black market effects are aggravated by further regulation-

canalisation.

◦ Secondly, the black market hurts small and marginal farmers more than large farmers since a

higher percentage of them are forced to buy urea from the black market.

◦ Thirdly, some of the urea subsidy goes to sustaining inefficient domestic production instead

of going to the small farmer.

As per Economic Survey 2018-19 Fertiliser response

ratio is showing a declining trend.

• This is an indicator of declining responsiveness of soil fertility

to fertiliser application.

• Declining Response Ratio is due to,

◦ Inadequacy and imbalance in fertiliser use

◦ Increasing multi-nutrient deficiency

◦ Lack of farmers awareness




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◦ Balanced plant nutrition and poor crop management

Way Forward & Suggestions

• Subsidy should be linked to productivity which will remove fertilizer companies from the game.

• The momentum for these changes has to be created through robust policies.

• State Governments and Central Government need to work in tandem to encourage farmers for

ecological farming.

Particularly in western UP and Punjab, the farmers need to move away from wheat and rice

because the ground water has depleted.

• Farmers have to be educated and taught to change their cropping pattern and move to multiple

cropping.

• To secure long term fertiliser supplies from locations where energy prices are cheap, it might be

worth encouraging Indian firms to locate plants in countries such as Iran, following the example of

the Fertiliser Ministry’s joint venture in Oman, which allowed India to import fertiliser at prices

almost 50% cheaper than the world price.

• Fertiliser is a good sector to pursue JAM because of a key similarity with the successful LPG

experience: the centre controls the fertiliser supply chain.

• In order to address the distortions in urea-

◦ Decanilising Urea imports which would increase the number of importers and allow greater

freedom in import decision- would allow fertiliser supply to respond flexibly and quickly to

changes in demand.

◦ Bringing urea under the Nutrient Based Subsidy program currently in place for DAP and

MOP would allow domestic producers to continue receiving fixed subsidies based on the

nutritional content of their fertiliser.

Suggestions-based on NITI Aayog Strategy

• Strengthen the SHC scheme to ensure SHC based fertiliser distribution at the ground level.

• Seed SHCs with the integrated fertiliser management system.

• Ensure proper functioning of the SHC labs.

• Link SHCs with Kisan credit cards and make SHCs mandatory for subsidies.

• Reorient fertiliser subsidy policy to bring secondary and micronutrients on the same nutrient based subsidy

(NBS) platform as phosphorus (P) and potash (K)

• Subsidies on liquid fertilisers to encourage fertigation with micro-irrigation

• Fertiliser sector should procure compost produced out of organic waste.

• Upfront subsidy per acre of land through Direct Benefit Transfer instead of providing separate subsidies for

fertilisers, electricity, crop insurance etc.

As per Economic Survey 2019 Suggested Measures are,

◦ Use of optimal dose based on soil health status

◦ Promotion of neem-coated urea

◦ Promotion of micronutrients

◦ Promotion of organic fertilizers

◦ Promotion of water-soluble fertilizer




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◦ Paramparagat Krishi Vikas Yojana (PKVY) and Rashtriya Krishi Vikas Yojana (RKVY) scheme

◦ Models like Natural Farming, Vedic Farming, Cow Farming, Homa Farming, Zero Budget Natural

Farming (ZBNF)

LAND REFORMS IN INDIA – Complete Analysis

What is Land Reform?

● Land reform is a broad term. It refers to an institutional measure directed towards altering the

existing pattern of ownership, tenancy and management of land.

● Land reforms in India usually refer to redistribution of land from the rich to the poor.

● Land reforms are often connected with re-distribution of agricultural land and hence it is related to

agrarian reforms too.

Objectives of Land Reform

1. Distributive Justice

2. To create a system of peasantry proprietorship (land to the tiller)

3. Enhance land productivity

4. Transfer the income of few to many so that the demand for consumer goods is created

Tenancy Land Systems – BRITISH ERA

At the time of independence, four land tenures existed in India

Ryotwari ● Under this system, the responsibility of paying land revenue to the

Government was of the cultivator himself and there was no intermediary

between him and the state.

● The Ryot had full right regarding sale, transfer and leasing of land and

could not be evicted from the land as long as he pays the land revenue.

Mahalwari ● Under this system, the village communities held the village lands

commonly and it was joint responsibility of these communities to make

payments of the land revenue.

● The land ownership is held as joint ownership with the village body.

The land can be cultivated by tenants who can pay cash/kind/share.

Zamindari ● Under this system the whole village was under one landlord who was

responsible for the payment of land revenue.




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● The persons interested can work in the Zamindar's land as

tenant/labourer based on the agreement with the zamindar.

Jagirdari ● It is similar to Zamindari system.

● The jagirdar is powered to control the unproductive masses of village by

engaging them in agricultural activities

Need for Land Reforms

● Presence of multiplicity of intermediaries between the Government and cultivator

● Lack of adequate security of tenure,

● Fixation of high rent and lack of incentive

● Large scale sub-division and fragmentation of holdings

● Unequal distribution of land

● Low productivity per hectare of land

4 phases of Land Reform Measures

1) 1950-72 : Land re-distribution

2) 1972-85 Bring uncultivated land under cultivation

3) 1985-19995 Water & Soil conservation

4) 1995-Till Now

LAND POLICY FORMULATION THROUGH PLANNING PERIOD had been determined to

redistribute land and to bring equity in rural population. This land policy was set through a number of five-

year plans by the Government after independence for proper land management.

Several Five-Year Plans:

Through the first five-year plan (1951-1956) the Government decided that The Community Development

Network will be looking after the common peasants. More areas will be taken for cultivation.

The second plan focused on land productivity which was very low in the British period.

The third five-year plan focussed on the problem of food security. Many land had been abandoned at that

time which was cultivable. Those lands were taken under the scope of cultivation again. This attention on

food security had been continued in the fourth five-year plan as well.

In the fifth five-year plan more focus was given on the drought prone areas.

In the sixth five-year plan extra attention had been given on the utilization of the agricultural resources,

mainly land. According to this plan more neglected lands were taken under cultivation.

Land degradation and soil erosion were the two main issues in the seventh five-year plan. So this plan

attempted to stop this by the introduction of "Evergreeen Green Revolution".




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Eighth five-year plan focused on the rain affected areas whereas in the

Ninth five-year plan several watershed development program had been forecasted for proper water

management.

Land Reform Measures in Phase 1 :

Abolition of intermediaries

between the State and tenants

Pros- (i) eliminated the middlemen and bought the cultivator into

direct relationship with the government.

(ii) improvement in the administrative machinery and social

services.

Cons- (i) It led to large-scale ejectment of poor tenants from land.

(ii) Landlordism was abolished, absentee landlordism flourished.

Tenancy reforms that provide

(a) security to tenants

(b) rationalisation and regulation

of rent

(c) conferment of ownership rights

on tenants

Pros- It gave security about the source of livelihood and tenure

from eviction

Cons- (i) Large inter-state variations in the fixation of land rent

rates

(ii) Tenancy reforms undertaken varied from state to state.

(iii) Escape clauses misused against the interest of tenants.

Fixation of ceiling on

landholdings

Pros- (i) helped remove inequalities in land ownership

(ii) redistribution of this surplus land

Cons- (i) Manipulation of land records to circumvent the law

Consolidation of holdings Pros- (i) Reduced fragemenation led to increase productivity

(ii) Helped during the period of Green Revolution




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Critical Analysis

Reasons of success

1. Freedom struggle leaders- High political will

2. Demand from low levels also

3. Democratic structure

4. Constitutional obligation

5. Necessities of Green revolution

6. Planned development

Positive Impact of Land Reforms

● The inverse relationship between land size and efficiency – the smaller the land, the better will be

the productivity and efficiency.

● Owner-cultivation more efficient than share-cropping.

● Abolition of the exploitative land tenure system

● Land was redistributed among the landless and the weaker sections of the society

● Provided security of tenure to the tenants

● Investments in agriculture became more common because tiller was now the owner

● Land reforms made a big dent on poverty

● Lower castes and classes got greater rights and were able to mobilise themselves

Negatives

● Fragmentation of land increased as a result of land ceilings and reforms.

● Evidence suggests that land reforms had a negative effect on poverty

● Many of the steps taken under land reforms such as land ceilings, tenancy reforms, land

consolidation etc. were not implemented properly due to legal loopholes.

Reasons for failure

● State subject

● Advanced publicity and delayed implementation

● Loose definition of personal cultivation

● Ownership transfer was not automatic

● Lack of social consciousness among tenants and unorganized tenants

● Green revolution favored big farmers

● Lack of political will.

● Apathetic attitude of the bureaucracy.




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● Absence of up-to-date land records.

● Legal hurdles in the way of implementation of land reforms.

● Transfer of lands to family members to avoid tenancy reforms.

● Lack of uniformity in Land Reform Laws.

● Limits for retention of land for personal cultivation.

SUGGESTIONS

• Wasteland revival

• Residential qualification for land holding

• Easier loans for buying lands

• Legal aid

• Peasant organisation

• Forest rights Act 2006

• Seriously implement RECENT REFORMS

1) Farmer Producer organizations (FPOs)

2) Computerization of land records

3) Cooperative farming

4) Land bank

5) Land leasing law

6) Land title reforms

7) Land acquisition law

IMPORTANT FACTS FROM ECONOMIC SURVEY 2019

Pattern of Agricultural Land Holdings In India

• Agriculture Census 2015-16 show that the number of operational holdings, has increased to 14.6

crore in 2015-16 from 13.8 crore in 2010-11. (Increase of 5.3%).

• Share of marginal holdings (less than 1 ha) in total operational holdings increased.

• Share of small holdings (1 ha to 2 ha) decreased.

• Large holdings (above 4 ha) decreased from 6.5% to 4.3%.

• Area operated by the marginal and small holdings increased from 38.9% in 2000-01 to 47.4% in

2015-16 while areas that of the large holdings decreased from 37.2% to 20 %

• Operational Holdings- Land put to agricultural use

Previous Year Questions




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Discuss the role of land reforms in agricultural development. Identify the factors that were responsible for

the success of land reforms in India. (2016)

Establish the relationship between land reform, agriculture productivity and elimination of poverty in Indian

Economy. Discussion the difficulty in designing and implementation of the agriculture friendly land reforms

in India. (2013)

Bharat IV to VI

What are Bharat Stage emissions standards?

• These are norms instituted by the government to regulate the output of air pollutants from

internal combustion engine equipment, including motor vehicles.

• To bring them into force, the Central Pollution Control Board sets timelines and standards which

have to be followed by automakers.

• BS norms are based on European emission norms which are referred to in a similar manner like

‘Euro 4’ and ‘Euro 6’.

• Implementation of the intermediate BS-V standard was originally scheduled for 2019. But Centre

announced that the country would skip the BS-V norms altogether and adopt BS-VI norms by 2020.

What is the difference between BS-IV and BS-VI standards?

• The main difference between the existing BS-IV and the upcoming BS-VI auto fuel norms is

the presence of sulphur. The BS-VI fuel is estimated to bring around an 80% reduction of sulphur,

from 50 parts per million to 10 ppm.

• Selective Catalytic Reduction Technology- It reduces oxides of nitrogen by injecting an aqueous

urea solution into the system. Hence, NOx from diesel cars can be brought down by nearly 70%. In

the petrol cars, they can be reduced by 25%.

• Mandatory on-board diagnostics (OBD) which inform the vehicle owner or the repair technician

about how efficient the systems in the vehicles are.

• RDE (Real Driving Emission) will be introduced for the first time that will measure the emission

in real-world conditions and not just under test conditions.




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Significance/Benefits

• This would mean a lower level of harmful emissions and reduced incidence of lung diseases.

• Vehicular emission is a major contributor to the worsening air quality of Indian cities. This would

significantly bring down share of vehicular pollution by reducing concentration of carbon

monoxide, un-burnt hydrocarbons, nitrous oxide and particulate matter from emissions.

• At the BS-VI level, the gap maintained between emissions from diesel and petrol are narrowed.

Challenges

• Huge Cost for automakers-

Moving to BS-VI directly will require significant technological upgrades for which auto

companies may have to invest heavily.

• Automakers were supposed to make their models BS IV compliant by April 1, 2017. While some

automakers have met the targets and updated their products, there is a huge stock of vehicles left to

be sold into the market. As per the Society of Indian Automobile Manufacturers (SIAM), the

companies were holding stock of around 8.24 lakh such vehicles.

• Timeframe- Normally it takes 4 years to upgrade and here the companies have to skip the BS V

altogether and upgrade directly to BS VI.

• Smaller bonnet cars of India may not be able to imbibe Diesel Particulate Filter in them which

was supposed to be a part of BS-V upgrade.

• Impact on buyers- This can have the effect of making cars and other vehicles more expensive.

• Directly aping the Euro norms is problematic, considering that driving conditions in India are

different from Europe.

• Further, improving the emission will not alone solve the problem of vehicular pollution as the

number of vehicles is disproportionately high in Indian cities.




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• Also, there is also the requirement of cleaner fuel to run these vehicles that comply with a stricter

emission regulation as it is not feasible to make internal combustion engines pollute less while using

poor quality of fuel.

Way Forward

• A successful transition to BS-VI norms will be a landmark event for the country and it must be

taken in a mission mode approach by all the stakeholders.

• Governments should incentivise the automobile manufacturers and partner the oil companies to

manage this transition.

• Government should make the emission standards transition gradual along with searching for

alternative fuels like ethanol and methanol blending.

• Apart from that the government should focus on lowering the demand of fuels on the first place by

promoting more physical mobility rather than vehicular mobility by following Transit Oriented

Development policy.

MONEY LAUNDERING



GS -3 Mains 2020-21

Course Broucher

WriteToBeIAS.com CA RAHUL KUMAR

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www.writetobeias.com Email : [email protected] 011-41561002 Page 30 Course Broucher for GS 3 Mains 2020-21

INDEX

• Basics of Money Laundering

• Process of Money Laundering

• Vulnerability of India

• Why it still persists

• Adverse consequences

• GOI Steps & Laws

• Global Efforts

• Previous Year Questions

• PMLA Amendment 2018

Meaning

• Money Laundering refers to the conversion or "Laundering" of money which is illegally obtained,

so as to make it appear to originate from a legitimate source

Illegal Activities

• Illegal arms sales,

• smuggling, and the

• activities of organised crime, including for example drug trafficking and prostitution rings

• Embezzlement,

• insider trading,

• bribery and

• computer fraud schemes

Two Myths

Myth 1: Converting black money into white is money laundering.

Reality: If the launderer simply conceals income and violates I-T Act, he will not necessarily be booked for

money laundering. He or she can be booked only if one of the 30 acts (statutes) which are included in the

Prevention of Money Laundering Act is violated.

Myth 2: Money launderers indulge in big-ticket scams

Reality: If someone makes a gain of Rs 30 lakh or above by violating any of the 24 acts, like Air

(Prevention and Control of Pollution) Act, SEBI Act, Prevention of Corruption Act, it will be considered a

case of money laundering.



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Round Tripping

In the context of black money, it leaves the country through various channels such as inflated invoices,

payments to shell companies overseas, the hawala route and so on.

After cooling its heels overseas for a while, this money returns in a freshly laundered form; thus completing

a round-trip.

How is money laundered?

• Placement the launderer introduces his illegal profits into the financial system. This might be done

by breaking up large amounts of cash into less conspicuous smaller sums that are then deposited

directly into a bank account

• Layering a series of conversions or movements of the funds to distance them from their source. - use

of widely scattered accounts for laundering is especially prevalent in those jurisdictions that do not

co-operate in anti-money laundering investigations.

• Integration – in which the funds re-enter the legitimate economy. The launderer might choose to

invest the funds into real estate, luxury assets, or business ventures.

Vulnerability of India (International Narcotics Control Strategy Report)

- India’s emerging status as a regional financial center

- Weak laws & willful defaulters

- its large system of informal cross-border money flows (Hawala)

- its widely perceived tax avoidance problems

- Poor GAAR Implementation

- Unholy nexus

- narcotics trafficking

- illegal trade in endangered wildlife, trade in illegal gems (particularly diamonds), smuggling,

- trafficking in persons,

- India’s geographical location between the heroin-producing countries of the Golden Triangle and

Golden Crescent

Reasons for Persisting Money Laundering

• Absence of deals for sharing tax information with other countries.

• Corporate Secrecy Laws – as the corporate law of certain countries enables launderers to hide behind

shell companies.



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• Tight Bank Secrecy Laws.

• A high degree of Economic Dependence on the Financial Services Sector.

• A Geographical Location that Facilitates Business Travel to and from rich neighbours

Consequences/Impacts

1. Naxalism, Extremism, Terrorism, Communalism

2. Weakens Political System (Unfair elections)

3. Undermining of the legitimate private sector

4. Undermining of the integrity of financial markets

5. Loss of control of economic policy

6. Economic distortion and instability

7. Loss of revenue: decreases the tax funds

8. Security threats to privatisation efforts

9. Reputation risk to the countries

Institutional Measures taken by Government

• The financial intelligence unit-India (FIU-India) which is the nodal agency in India for managing the

anti-MONEY LAUNDERING ecosystem. It helps in co-coordinating and strengthening efforts to

reduce MONEY LAUNDERING and related crimes in India.

• Prevention of MONEY LAUNDERING Act, 2002 has been the core framework for combating it.

and subsequent amendments to strengthen the act Prevention of MONEY LAUNDERING

(Amendment) Bill, 2012

• The Enforcement directorate carries out investigations. The ED is also empowered to attach property

entities involved in money laundering.

• A special cell called Combating Financing of Terrorism (CFT) Cell was created in the Internal

Security Division of MHA in 2011 to coordinate with Central Intelligence Enforcement Agencies

and the State Law Enforcement Agencies to develop an integrated approach to tackle the problem of

terror funding

Legal Measures taken by Government

1. The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976

2. Narcotic Drugs and Psychotropic Substances Act, 1985.

3. Benami Transactions Prohibition Act

4. COFEPOSA or the Conservation of Foreign Exchange and Prevention of Smuggling Activities

Act,1974

5. Demonetization

6. UAPA, 1967

7. Foreign income & assets discloser Act

8. Prevention of Money-laundering Act, 2002 (PMLA) through Finance Act 2018.

Global Efforts



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Global steps to counter money laundering problem:

• G 20 : Information Exchange Agreements

• DTAA Amended (Mauritius, Cyprus, Singapore)

• UN Office on Drugs & Crime

• FATCA by USA

• Revised BITs

• GAAR implementation

• SEBI Stringent rules regarding P-Notes

• CCIT

• United Nations Convention against illicit traffic in Narcotic Drugs and psychotropic substances:

India’s urgent need to control drug trafficking reflects growing awareness within the international

community that drug trafficking and money laundering must be suppressed. The United has played

an integral role in the global community’s fight against illicit drug trafficking and money laundering.

• Financial Action Task force on money laundering: Intergovernmental groups have also taken

action against the rising levels of global money laundering. The task force was created by G-7

countries to curb the occurrence of money laundering.

• Basle Committee Minimum standards

UPSC Questions

• 2013 - Money laundering poses a serious threat to country’s economic sovereignty. What is its

significance for India and what steps are required to be taken to control this menace?

• 2018 - India’s proximity to two of the world’s biggest illicit opium-growing states has enhanced her

internal security concerns. Explain the linkages between drug trafficking and other illicit activities

such as gunrunning, money laundering and human trafficking. What counter-measures should be

taken to prevent the same?



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Sample of GS 3 Exam Time Synopsis

1. Infra Financing Issues

Need Need to finance the burgeoning infrastructure sector, upgrading old and new

infrastructure projects, long-gestation periods, IL&FS mess, boost to economic

prospects and employment

Reasons Cost and time overruns, Inappropriate risks sharing, Uncertainty in policy and

regulatory frameworks, Prolonged disputes, Poor financial health, high capital cost,

rising NPAs,Non-deepening of bond market

Government and

RBI initiatives

India Infrastructure Finance Company Limited (IIFCL), National Investment and

Infrastructure Fund (NIIF) , tax-free infrastructure bonds, masala bonds, 100% FDI

under automatic route, Liberalised ECB, RBI categorised infrastructure lending NBFCs,

FIIs allowed to invest in infrastructure debt funds, Green bond scheme, Infrastructure

Investment Trusts (InvITs), Credit Guarantee Enhancement Corporation

Way Forward stipulated time frame for clearances, specialised rating agency, full Capital account

convertibility, tap into long term investment funds, attract sovereign funds and green

bonds, explore foreign markets, Municipal bonds, Tax breaks for Infra bonds, effective

bankruptcy regime, Tobin-tax like alternatives

2. Logistics Sector

Objectives multi-modal movement of cargo on par with global logistics standards, Reduce the

logistics cost, Expand the logistics market, Improve logistics skilling and increase jobs,

reduce border compliance

Status According to Economic Survey 2018-19, the logistics sector can be the largest job

creator by 2022. Currently provides employment to more than 72 crore. Logistics costs

in India are high relative to other countries. In WEF Global Competitiveness Index

India was ranked 66th.

Government

Initiatives

Logistics included in the harmonised master list of the infrastructure sub-sector, New

Logistics Division in the Ministry of Commerce and Industry, Logistic Hub in Assam,

Logistic Efficiency Enhancement programme, GST, draft National Logistics Policy,

Infrastructure status has been given to select logistics activities. Subsidy to develop

cold chains and pack houses.



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Constraints Cost of logistics, Lack of Coordination due to multiple stakeholders’ involvement, low

value addition in warehousing, fragmented structure, lack of interoperable technology

and last mile connectivity, High Border compliance and document processing time

Way Forward- NITI

recommendations

Rationalise tariffs, Create an overarching body that maintains all transport data, Enhance

efficiency of warehouses, Create vertical silos, Setting up multimodal logistics parks,

Allow private players in CONCOR, develop an integrated IT platform, shift towards

international standards

3. Oil and Natural Gas

Objectives Reduce imports of oil and gas by 10% by 2022-23.

Status World’s third largest energy consumer, its per capita energy consumption lower the

world average, heavily dependent on petroleum imports, 16000 km of gas pipeline

networks exists. According to Economic Survey 2018-19, India’s primary energy

demand is expected to grow at a CAGR of 4.21% during 2017-2040, much faster than

any major economy in the world.

Government

Initiatives

Complete mapping of 26 sedimentary basin, National Gas Grid, Pradhan Mantri Urja

Ganga, Pratyaksh Hanstantrit Labh (PAHAL), Pradhan Mantri Ujjwala Yojana, LPG

Panchayat, Start-up Sangam initiative, Saksham-2018, Gas4India Campaign, Sustainable

Alternative towards Affordable Transportation (SATAT), City Gas Distribution (CGD)

Network

Policies New Exploration Licensing Policy (NELP), Hydrocarbon Exploration and Licensing Policy

(HELP), Open Acreage Licensing Policy (OALP), Discovered Small Field Policy, Coal bed

Methane Policy, 1997

Constraints Reliance on Imports for Gas Supply, Pricing and Affordability, Not yet liberalised

completely, Lack in transmission infrastructure, Poor Quality and availability of field

data, Lack of progress of international gas pipelines, need to augment refining

capacity, Discriminatory access, Lack of market-driven gas prices

Way Forward- NITI

recommendations

integrated national-level energy policy, mechanism to protect from higher gas prices,

Development of gas infrastructure, Dismantling of Administered Price Mechanism,

common carrier and open access to gas pipelines, Separate developmental and

regulatory functions of PNGRB, establish the National Gas Grid, use of cutting-edge

technology, market pricing, shared infrastructure, viability gap funding, strategic

reserves



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4. RERA Real Estate (Regulation and Development) Act, 2016

Provisions Establishment of Real Estate Regulatory Authority (RERA) and Real Estate Appellate

Tribunal (REAT), Registration of real estate project with RERA, Definition of carpet

area, Cap on advance payment, Adherence to sanctioned plans, Compensation to the

allottees, Penal provisions for promoters

Significance increasing transparency and accountability, forums for grievance redressal, lower

litigation, greater flow of investment

Hurdles Escrow account, onus on builder can be manipulated, delays and disputes lead to

litigations, fails to address problem of black money, cost of construction might be

higher than 70% of total cost, difficult to sell units based on carpet area, ’net usable

floor area’ not defined, delays due to governmental approvals, time limit for the

adjudication process might not work, lack of political will in states, upgradation of land

records, land laws under state list.

Recommendations

of Standing

Committee

Exclusion of certain projects, Registration of all real estate agents, Single window

system for project approvals, define ‘Net usable floor area’

5. Railway Sector

Objectives Augment capacity infrastructure., Increase the speed of infrastructure creation, 100%

electrification of broad gauge, Increase the average speed of freight and mail/express

trains,

Improve the safety, Enhance service delivery, Increase freight load and improved

modal share, Increase the share of non-fare revenues

Status According to Economic Survey 2018-19, Rail freight and passenger traffic grew,

Indian Railways is the fourth largest network globally, Modal share of railways freight

has declined, Expenditure on the railways declined

Government

Initiatives

National High Speed Corporation’, Vandhe Bharat Express, Mission 41K, Rail Wire Sathi,

Rail Wire Sathi, independent regulator-Rail Development Authority, Merger of Rail

Budget and Finance Budget, Railway Infrastructure Development Fund (RIDF),Six

Dedicated freight corridor (DFC), Infrastructure Status to Station Redevelopment,

Railway University to at Vadodara, Shrestha, Sutra, ‘Rail Saarthi’ app, Eliminated All

Unmanned Level Crossing, RailCloud, NIVARAN, CCTV cameras under Nirbhaya Fund,

Railway Protection Force helpline 182



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Challenges Misplaced Focus, Infrastructure not augmented to match the increase in number of

trains, Failure of private participation, Financing issues, outdated accounting

system,lack of empowerment, RDSO highly constrained

Way Forward-

Recommendations

of CAG, Bibek

Debroy Committee,

Anil Kakodkar

Committee, Sam

Pitroda Committee

Master Plans for stations, Increase the length of platforms, Restructuring of zones,

reduce costs on non-core activities, switch to double entry accounting system,

restructuring of RDSO, adoption of an Advanced Signalling System, switch from ICF

coaches to LHB coaches, Attract private investment, Computerise Railway Human

Resource Management System, Establish Indian Institute of Railway Research,

reorganise the Railway Board, Railways Tariff Regulatory Authority, optimal utilisation

of existing infrastructure, Ease organisational rigidity, Rationalise fare structures and

subsidies, Switch to common transport documents.

6. Road Sector

Objectives Complete Phase-I of Bharatmala and PMGSY, double length of NH, Improve regulatory

framework, commitment to Brasilia Declaration

Government

Initiatives

National Highway Development Plan, PMGSY, IBMS, Bhoomi Rashi, Bharatmala, Setu

Bharatam, Green Highways, Road corridors, FASTag, 100% FDI, Register of Motor

Vehicles

Challenges Overstrained highways, Maintenance of existing infrastructure, Accidents and safety

concerns, Cost escalation due to delays, Lack of availability of funds, Environmental

concerns

Way Forward Improve the implementation capacity, Maintenance of NH, Penalise poor quality

maintenance, National Safety Board, Implement 2017 guidelines by MoRTH, Training

at ITIs, R&D, Multi-modal solutions

10. Bharatmala

Features umbrella programme on optimising efficiency. Components- Economic corridors,

Inter-corridor roads & feeder roads, National Corridors Efficiency improvements, Border

& International connectivity roads, Coastal & port connectivity roads, Green Field

Expressways



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Impact employment, increase in GDP, attract investment, enhance economic activity, Increase

in vehicle speed, decrease supply chain costs, makes other schemes attractive to

investors, boost tourism, boost the associated industries, upliftment of the

underdeveloped regions

Challenges problems of funding and delays, operational issues, no clarity on private sector

investments, Big construction companies missing from auctions

Way Forward EPC projects, rope private sector, road map for timely completion, working with state

government, include backward areas

7. Agriculture Subsidies

What is it? governmental financial support to farmers and agribusinesses. Different Types are

Input subsidy, Price subsidy, Infrastructural subsidy, Export subsidy

Various Forms,

Government

Initiatives, Issues,

Solution

Fertiliser- New Pricing Scheme. Issue- indiscriminate use—> loss of soil fertility.

Solution- awareness, SHC, neem coated urea, organic farming

Credit- NABARD, loans at 4% interest

Debt Waiver- Government takes over liability

Power- subsidised rate to farmer, Issue- overuse —> groundwater depletion. Solution-

Separate agriculture feeder network

Seeds- High yielding variety seeds at subsidised prices, promotion of R&D

Price (MSP) Issue- cereal centric, biased to rich farmers and rich states. Solution- Crop

diversification

Need for

rationalisation

poor targeting, Diversion of limited monetary resources, Inefficient subsidy system,

Detrimental impact on environment, free commodity promotes inefficient use

Way Forward Targeting the right segments, Optimization of the subsidy, Use of JAM trinity, subsidies

to high-value commodity sectors like poultry and dairying, Resolving marketing and

logistics constraints, interest subvention scheme, strengthening formal baking in rural

areas

NITI Aayog Recommendations-

Link SHCs with Kisan Credit Cards, Reorient fertiliser subsidy policy, Align pesticide



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framework with food safety laws, Targeted subsidy on liquid fertilizers, Financial

inclusion, Use of technology

8. Model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act,

2017

Objectives create a single agriculture market with a single license, wholesale agri-market every

80km, no separate fees for individual markets.

Features recognition of a State/UT as a single market, restriction-free trade,

Disintermediation of food supply chain, conducive environment for private

wholesale market yards and farmer-consumer market yards, direct interface between

farmer and buyer, warehouses/silos/cold storages and other structures/space as

market sub-yard, Freedom to the farmers to sell their produce, Promotion of e-

trading, single point levy of market fee, national market, Rationalisation of

charges, Special Commodity Market-yard and Market-yard of National Importance

(MNI), democratisation of Market Committee and State/UT Marketing Board.

Benefits better price realisation, increased avenues to sell their produce, multiple fees

eliminated, access to national markets, doubling farm income, for food processing

industries raw material would be made available at lower prices, maintain healthy

food inflation, direct interaction between farmers and end-users

9. Fisheries

Status As per Eco survey 2019

Fisheries sector has shown a rapid growth, India is the second largest fish producer,

50% of inland fish production is from culture fisheries, Fish and fish product exports

emerged as the largest group in agricultural exports.

Challenges over exploited, low productivity, loss of habitat, high cost, Low investment,

Inadequate supply of resources, Slow adoption of new technologies, deep-sea fishing,

Inadequate cold chain infrastructure, Loss of biodiversity, Security of fishermen,

Lack of a reliable database, Water pollution, Lack of fiscal and policy support

Government

Initiatives

In Budget 2019-20, new fisheries department, Blue Revolution – Neel Kranti Mission,

National Policy on Marine Fishery, 2017, PM Kisan Matsya Sampada Yojana



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Way Forward inland fisheries, Investment in hatcheries, cage culture, fill large infrastructure gaps,

R&D

NITI Aayog Suggestion- Integration Blue Revolution with MGNREGA, fish

cooperatives

10. Micro-Irrigation

What is it? focused application of water to achieve higher cropping and irrigation intensity

Benfits Increase in water use efficiency, Energy Efficiency, Fertilizer Use Efficiency,

Productivity increase, Irrigation cost saving, New crop introduction, Increase in

farmer’s income

Reasons for low

penetration

Initial high costs, limited knowledge, poor implementation of government policies,

lack of Regular monitoring, energy crisis

Challenges policy concerns, Delays in subsidy disbursement, Lack of private financing, farm-

sizes diminishing, Lack in support for maintenance, schemes yet to be operational

Way Forward make micro-irrigation core scheme, other alternatives for saving water, re-appraisal

of farmers’ subsidy/credit schemes, encourage private financing, increase support

staff



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