DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 19th August 2022

  • IASbaba
  • August 19, 2022
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Inflation target breach

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  • Prelims – Economy

In News: The Reserve Bank of India will call a special meeting of its Monetary Policy Committee (MPC) in October to discuss a report it will have to submit to the Union government explaining the reasons for the average retail inflation remaining above the upper tolerance limit of 6 per cent for three consecutive quarters.

  • The Union government, in consultation with the RBI, fixes the inflation target for the central bank every five years.
  • It had fixed it at 4 per cent plus/ minus 2 per cent (upper limit 6 per cent, lower limit 2 per cent) for the period August 5, 2016 to March 31, 2021, and retained it for the next five years ending March 31, 2026.
  • A monetary policy framework was signed between RBI and government on February 20, 2015.
  • The RBI Act, 1934, was amended in May 2016, giving effect to this framework agreement.
  • The framework agreement requires the RBI to submit a report to the Union government if it is in breach of the inflation targets for three consecutive quarters.
  • In eight years, this will be the first time the RBI would have let retail inflation slip beyond the upper tolerance limit of 6 per cent for three straight quarters.
  • The average retail inflation in January-March 2022 and April-June 2022, according to data released by the National Statistics Office, was 6.34 per cent and 7.28 per cent, respectively.
  • The data for August and September is scheduled to be released on September 12 and October 12, respectively.
  • Upon failing to meet the inflation target, the RBI, would have to state the reasons for failure to achieve the target, propose remedial actions to bring it down to 4 per cent, and also provide an estimate of the time-period within which the target would be achieved.
  • These would be presented in a report to the Union Ministry of Finance.
  • The sources said, it would be up to the government to make the RBI report public. The special meeting of the MPC would discuss the RBI report before it is submitted.

Monetary Policy Committee (MPC)

  • Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member Monetary Policy Committee (MPC).
  • The Section 45ZB lays down that “the Monetary Policy Committee shall determine the Policy Rate required to achieve the inflation target”.

Composition: Section 45ZB says the MPC shall consist of 6 members:

  • RBI Governor as its ex officio chairperson,
  • Deputy Governor in charge of monetary policy,
  • An officer of the Bank to be nominated by the Central Board,
  • Three persons to be appointed by the central government.
  • This category of appointments must be from “persons of ability, integrity and standing, having knowledge and experience in the field of economics or banking or finance or monetary policy”.

Must Read: Various Instruments of Monetary Policy

Source: Indian Express

The Hindu

Previous Year Question

Q.1) Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (2017)

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

  1. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 2 and 3 only

Q.2) With reference to Indian economy, consider the following: (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?

  1. 1 only
  2. 2, 3 and 4
  3. 1 and 2
  4. 1, 3 and 4

NIDAAN Portal - National Integrated Database on Arrested Narco-offenders

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  • Prelims – Current Affairs

In News: India’s first portal on arrested narco offenders gets operational.

  • A first-of-its kind database of arrested narcotics offenders has been made operational for use by various central and State prosecution agencies tasked to enforce anti-drugs laws in the country.
  • The portal — NIDAAN or the National Integrated Database on Arrested Narco-offenders — has been developed by the Narcotics Control Bureau (NCB).
  • It is part of the narcotics coordination mechanism (NCORD) portal that was launched by Union Home Minister.
  • The NIDAAN platform sources its data from the ICJS (inter-operable criminal justice system) and the e-Prisons (a cloud-based application) repository and it is planned to integrate it in the future with the crime and criminal tracking network system or CCTNS, a senior officer said.
  • The ICJS, an initiative of the Supreme Court e-committee, was created to enable seamless transfer of data and information among different pillars of the criminal justice system, like courts, police, jails and forensic science laboratories, from one platform.
  • NIDAAN is a one-stop solution for all narcotics offenders’ related data and will help investigative agencies as an effective tool to connect the dots while probing narcotics cases.
  • NIDAAN hosts data about those accused who have been arrested and jailed for drugs offences and those who are directly or indirectly involved in the produce, manufacture, possession, selling, purchase, transport, warehousing, usage, consumption, inter-state import and export, import into India, export from India or transshipment of any narcotics or psychotropic substance
  • Any agency can search for the crime history, personal details, fingerprints, court cases and appeals made etc. with regard to a drug offender from any part of the country.
  • A distinct feature called ‘criminal network’ on the portal can also be accessed by agencies, as part of which specific links of an accused to other crimes, linked police FIRs and those who visited them in jail can also be accessed, the officer said.

Source: The Hindu

Previous Year Question

Q.1) ‘SWAYAM’, an initiative of the Government of India, aims at (2016)

  1. promoting the Self Help Groups in rural areas
  2. providing financial and technical assistance to young start-up entrepreneurs
  3. promoting the education and health of adolescent girls
  4. providing affordable and quality education to the citizens for free

Combined Maritime Forces (CMF)

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  • Prelims – International Relations

In News: The Indian Navy has formally commenced its cooperation with the Bahrain-based multilateral partnership, Combined Maritime Forces (CMF), as an ‘associate member’.

About Combined Maritime Forces (CMF)

  • CMF is a multi-national naval partnership to promote security, stability and prosperity across approximately 3.2 million square miles of international waters, which encompass some of the world’s most important shipping lanes.
  • CMF’s main focus areas are counter-narcotics, counter-smuggling, suppressing piracy, encouraging regional cooperation, and engaging with regional and other partners to strengthen relevant capabilities in order to improve overall security and stability, and promoting a safe maritime environment free from illicit non-state actors.
  • The 34 nation grouping is commanded by a U.S. Navy Vice Admiral, who also serves as Commander U.S. Naval Forces CENTCOM and U.S. Fifth Fleet.
  • All three commands are co-located at U.S. Naval Support Activity Bahrain. In the immediate neighbourhood, Pakistan is a full member of CMF.
  • When requested, CMF assets at sea will also respond to environmental and humanitarian incidents.

CMF has four Combined Task Forces:

  • CTF 150 (Maritime Security Operations outside the Arabian Gulf)
  • CTF 151 (Counter-Piracy)
  • CTF 152 (Maritime Security Operations inside the Arabian Gulf)
  • CTF 153 (Red Sea Maritime Security)
  • It is a flexible organisation and members are not bound by either a political or military mandate.
  • Contributions can vary from the provision of a liaison officer at CMF HQ in Bahrain to the supply of warships or support vessels in task forces, and maritime reconnaissance aircraft based on land.
  • India has in the past cooperated with CMF on various occasions.
  • For instance, the CMF’s CTF 151 has coordinated with Indian and Chinese warships deployed on anti-piracy duties to patrol the Maritime Security Transit Corridor.

India and CMF

  • At the India-US 2+2 in April this year, India had announced that it would join the CMF as an Associate Partner.
  • Joining the CMF is the latest in a series of multilateral engagements by the Indian Navy as part of India’s widening military diplomacy.
  • Commitments to resources and personnel are limited for Associate membership and it will be cooperative engagement based on the needs and requirements.

Source: The Hindu

The Hindu


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  • Prelims – Science and Technology

In News: The Supreme Court directed the Kasargod District Legal Services Authority in Kerala to inspect the medical and palliative care facilities provided to endosulfan victims.

  • The bench ordered the legal services authority to submit its report in six weeks.
  • The order came after victims, complained of the lack of health care infrastructure provided by the State despite the best efforts of the district administration.
  • The State Government has recently filed an affidavit informing the apex court about the disbursal of compensation to 98% of the victims.
  • In May, the apex court slammed the Kerala Government for doing “virtually nothing” for endosulfan pesticide exposure victims.
  • The court had said the State’s inaction was “appalling” and amounted to a breach of the apex court’s judgment in 2017, which had ordered the State to pay 5 lakh each to the victims in three months.
  • The court noted that “The right to health is an integral part of the right to life under Article 21 of the Constitution. Without health, the faculties of living have little meaning.”

What is Endosulfan?

  • Endosulfan is an organochlorine insecticide which was first introduced in the 1950s and is commonly known by its trade name Thiodan.
  • It is linked to a slew of grave medical conditions, such as neurotoxicity, physical deformities, poisoning and more.
  • It is sprayed on crops like cotton, cashew, fruits, tea, paddy, tobacco etc. for control of pests such as whiteflies, aphids, beetles, worms
  • Endosulfan is listed under both the Rotterdam Convention on the Prior Informed Consent and the Stockholm Convention on Persistent Organic Pollutants.

What are the Impacts of Endosulfan?

  • Endosulfan in the environment gets accumulated in food chains leading to higher doses causing problems.
  • The endosulfan ingestion results in diseases ranging from physical deformities, cancer, birth disorders and damage to the brain and nervous system in humans and animals.


  • The Rotterdam Convention is the name of the Convention, which was adopted by the Conference of Plenipotentiaries in 1998 in Rotterdam (Netherlands).
  • It intends to promote shared responsibility with respect to the global trade of hazardous chemicals.
  • The convention’s secretariat is located in Geneva, Switzerland.
  • The Prior Informed Consent (PIC) procedure is implemented under the terms of the Convention, which establishes obligatory legal responsibilities.

What is the Prior Informed Consent (PIC) Procedure?

  • It is one of the key clauses of the 1998 Rotterdam Convention.
  • It says that parties must legally obtain and communicate the decision to receive future shipments of the substances listed in Annex III of the Convention before they can import them.
  • The importing parties must make sure that the exporting parties abide by any judgments made on their imports.


  • The convention has 163 parties, including 158 UN members, the Cook Islands, the State of Palestine, and the European Union.
  • The United States is one of the non-member states.
  • On May 24, 2005, India became a party to the Rotterdam Convention.
  • The Rotterdam Convention became effective in India on August 22, 2005.

The Rotterdam Convention’s covered provisions are as follows:

  • The convention includes industrial chemicals and insecticides that are outlawed or subject to rigorous regulations.
  • Any concern about industrial chemicals and pesticides encourages their inclusion on Annex III of the agreement.
  • Annex III lists 52 chemicals, 35, 16 industrial chemicals, and one chemical that falls into both the pesticide and industrial chemical categories.

The Stockholm Convention:

  • It is a global treaty to protect human health and the environment from Persistent Organic Pollutants.
  • It was opened for signature in 2001 in Stockholm (Sweden) and became effective in 2004.
  • POPs are listed in various Annexes to the Stockholm Convention after thorough scientific research, deliberations and negotiations among member countries.


  • Support the transition to safer alternatives.
  • Target additional POPs for action.
  • Cleanup old stockpiles and equipment containing POPs.
  • Work together for a POPs-free future.

India ratified the Stockholm Convention in 2006 as per Article 25(4), which enabled it to keep itself in a default “opt-out” position such that amendments in various Annexes of the convention cannot be enforced on it unless an instrument of ratification/ acceptance/ approval or accession is explicitly deposited with UN depositary.

  • The convention calls to ban nine of the dirty dozen chemicals (key POPs), limit the use of DDT to malaria control, and curtail inadvertent production of dioxins and furans.
  • The convention listed twelve distinct chemicals in three categories:
  • Eight pesticides (aldrin, chlordane, DDT, dieldrin, endrin, heptachlor, mirex and toxaphene)
  • Two industrial chemicals (poly chlorinated biphenyls and hexachlorobenzene)
  • Two unintended by-products of many industrial processes involving chlorine such as waste incineration, chemical and pesticide manufacturing and pulp and paper bleaching (poly chlorinated dibenzo-p-dioxins and dibenzofurans, commonly referred to as dioxins and furans).

Source: The Hindu

Previous Year Question

Q.1) Triclosan considered harmful when exposed to high levels for a long time, is most likely present in which of the following? (2021)

  1. Food preservatives
  2. Fruit-ripening substances
  3. Reused plastic containers
  4. Toiletries


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  • Prelims: Science & Technology

In News: NASA’s Artemis I mission will send yeast to deep space with BioSentinel.

  • NASA’s BioSentinel will carry microorganisms to deep space to help scientists better understand the effects of deep space radiation on biological lifeforms.


  • The primary objective of BioSentinel is to monitor the vital signs of yeast to see how the microorganism fare when exposed to the radiation of deep space.
  • Yeast cells have biological mechanisms that are like human cells, including DNA damage and repair.
  • Due to this, scrutinising yeast in space will help us better understand the risks of space radiation to humans as the space agency plans missions to the Moon and beyond.
  • For this, BioSentinel will study yeast cell growth and metabolic activity after exposure to a high-radiation environment.
  • A key component of BioSentinel’s mission is a novel biosensor. NASA refers to it as a “miniature biotechnology laboratory” that is designed to measure how living yeast cells respond to long-term space radiation exposure.
  • BioSentinel is just one of the Artemis I mission’s ten secondary payloads that will hitch a ride to deep space.
  • All these satellites are mounted in the Orion stage adapter on the Space Launch System (SLS) rocket.

Must Read: Artemis I mission

Source: Indian Express

Previous Year Question

Q.1) Which of the following pair(s) is/are correctly matched? (2014)

            Spacecraft                   Purpose

  1. Cassini-Huygens        Orbiting the Venus and transmitting data to the Earth
  2. Messenger                   Mapping and investigating the Mercury
  3. Voyager                        Exploring the outer solar system

Select the correct answer using the code given below.

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

India Blockchain Platform

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  • Prelims: Science and Technology
  • Mains: GS 3 (Science and Technology)


  • India has made a significant effort to become a digital society by building a large citizen-scale digital public infrastructure.
  • As, With the commencement of the Digital India mission in 2015, our payments, provident fund, passports, driving licences, crossing tolls, and checking land records all have been transformed with modular applications built on Aadhaar, UPI, and the India Stack.
  • The Government of India and Reserve Bank of India (RBI) have been promoting simplification and transparency to increase the speed of interaction between individuals, markets, and the government.

What are the Challenges of public digital infrastructure?

  • For better implementation of digital technology, it is prerequisite that digital infrastructure should be designed based on principles of availability, affordability, value, and trust.
  • Which can be made by using design principles, legislative frameworks, governance frameworks, and public engagement.
  • But the current digital ecosystem, it is identified that existing different digital infrastructures are not interconnected as a design; a technical integration is required to make them conversant and interoperable.
  • Most of available digital data is stored on private databases, which makes the validation of data more complex as the network grows, driving up costs and creating inefficiencies.

Web 3.0 to address these challenges: Yes

What is Web 3.0 (Web3)?

  • Web 3.0 (Web3) is the third generation of the evolution of web technologies.
  • The web, also known as the World Wide Web, is the foundational layer for how the internet is used, providing website and application services.
  • Web 3.0 will have a strong emphasis on decentralized applications and make extensive use of blockchain-based technologies.
  • Web 3.0 will also make use of machine learning and artificial intelligence (AI) to help empower more intelligent and adaptive applications.
  • Web 3.0 architecture can be the next resilient platforms, which is capable of scaling and solving the current challenges in a cost-efficient manner.
  • The Web 3.0 architecture establishes a new version of the Internet protocol incorporating token-based economics, transparency, and decentralization.
  • A user can access all ecosystem benefits using a distributed token where they can show proof of ownership, tax history, and payment instrument.
  • Therefore, A blockchain-based infrastructure can provide all these attributes without the need of trusting any actor to verify a ledger’s history. The blockchain records could be visible, compiled, and audited by the regulators in real time.

Increasing global adoption of blockchain infrastructure:

  • Many countries have already begun establishing their blockchain policies and infrastructure.
  • Estonia, the world’s blockchain capital, is using blockchain infrastructure to verify and process all e-governance services offered to the general public.
  • In Britain, the Centre for Digital Built Britain, a partnership between the University of Cambridge and the UK government is running the National Digital Twin (NDT)program to foster collaboration between owners and developers of digital twins in the built environment
  • There are also well-established Decentralised finance (DeFi) platforms that rely on blockchain infrastructure like Ethereum, however, pegged to the base cryptocurrencies owned by that platform.
  • DeFi allows users to borrow and lend cryptocurrencies on a short-term basis at algorithmically determined rates.

The digital roads that India must build using blockchain

  • The Indian digital community, including fintech’s, academia, think tanks, and institutions, should focus on
    • supporting research in standards,
    • interoperability, and
    • efficient handling of current known issues with the distributed technologies, scalability and performance, consensus mechanisms, and auto-detection of vulnerabilities
  • Also, at present, end-user devices such as smartphones do not support blockchain-based technology and, as a result, the last mile is always outside the network.

Current regulation mechanism and what need to be done?

  • Currently, the blockchain models are unregulated and rely on intrinsic standards.
  • The ideal solution to solving most of the known issues of decentralised technologies lies in the middle path,e., a national platform.
    • blockchains (both permissioned and public),
    • application providers (decentralized applications — dApps —and existing),
    • token service providers, and infrastructure managers.
  • As a result, together they can form a reliable and efficient network for the Indian digital economy.

The need of the hour is to work on an indigenous solution of the people, for the people, and by the people. A digital infrastructure based on blockchain technology will transform the digital ecosystem in India, and will enable the future of digital services, platforms, applications, content, and solutions. Considering the current situation worldwide, one can safely assume that we are at the beginning of the curve, but the days are not far.

Source: Indian Express

Previous Year Question

Q.1) With reference to Web 3.0, consider the following statements: (2022)

  1. Web 3.0 technology enables people to control their own data.
  2. In Web 3.0 world, there can be blockchain based social networks.
  3. Web 3.0 is operated by users collectively rather than a corporation

Which of the following given above are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Q.2) With reference to “Blockchain Technology”, consider the following statements: (2020)

  1. It is a public ledger that everyone can inspect, but which no single user controls.
  2. The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
  3. Applications that depend on basic features of blockchain can be developed without anybody’s permission.

Which of the statements given above is/are correct?

  1. 1 only
  2. 1 and 2 only
  3. 2 only
  4. 1 and 3 only

Restrictions to online content

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  • Prelims – Current Affairs
  • Mains – GS 2 (Governance)

Context: The website of VideoLAN Client (VLC) has been banned in India.

  • Although there is no official information on the ban, VLC states that according to its statistics, its website has been banned since February this year.

What is VideoLan?

  • VLC gained popularity in India in the late 90s when advancements in information technology led to the penetration of personal computers in Indian homes.
  • It continues to be one of the most popular media players.
  • Apart from being free and open source, VLC easily integrates with other platforms and streaming services and supports all file formats without requiring additional codecs.

Why VLC was banned?

  • Civil society organisations have repeatedly filed RTI applications with the Ministry of Electronics and Information Technology (MeitY).
  • These applications have been met with similar responses stating that “no information is available” with the Ministry.
  • Lack of authoritative information from the government has led to speculation that VLC was banned along with the 54 Chinese applications in February this year.
  • Although VLC is not a Chinese app, reports from cybersecurity firms, such as Symantec, in April this year suggested that Cicada, a hacker group allegedly backed by China, has been using the VLC Media Player to deploy a malicious malware loader.
  • This is also being used to explain why the present ban is a soft ban rather than a hard ban.

In which situations can online content be blocked to the public?

  • There are two routes through which content can be blocked online — executive and judicial.
  • First, the Government of India gets this power from Section 69A of the Information Technology Act, 2000.
  • Section 69A allows the government to direct an intermediary to “block for access by the public any information generated, transmitted, received, stored or hosted in any computer resource” if it is “necessary or expedient to do so, in the interest of sovereignty and integrity of India, defence of India, security of the state, friendly relations with foreign states or public order or for preventing incitement to the commission of any cognisable offence”.
  • Section 69A draws its power from Article 19(2) of the Constitution which allows the government to place reasonable restrictions on the fundamental right to freedom of speech and expression.
  • Second, courts in India, also have the power to direct intermediaries to make content unavailable in India to provide effective remedy to the victim/plaintiff.
  • For example, courts may order internet service providers to block websites which provide access to pirated content and violate the plaintiff’s copyright.

What is the procedure for blocking access to content online?

  • It is provided in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009 (IT Rules, 2009) that have been formulated under Section 69A of the Information Technology Act, 2000.
  • Only the Central government can exercise this power of directing intermediaries to block access to online content directly, and not the State governments.
  • The procedure typically provides that Central or State agencies will appoint a “nodal officer” who will forward the blocking order to the “designated officer” of the Central government.
  • The designated officer, as part of a committee, examines the request of the nodal officer.
  • The creator/host of the content in question is given a notice to submit clarifications and replies.
  • The committee then makes a recommendation on whether the request of the nodal officer should be accepted or not.
  • If this recommendation is approved by the MeitY, the designated officer can direct the intermediary to remove content.

How can this process be improved?

There has been demand for certain reforms to the IT Rules, 2009 for some time now.

The first is on the aspect of transparency.

  • As witnessed in the case of VideoLan’s website blocking, there is no clarity on why its website has been blocked.
  • Rule 16 of the IT Rules, 2009 provides that strict confidentiality is to be maintained with respect to any requests or actions under the IT Rules, 2009.

Second, provide opportunity

  • Even though the IT Rules provide for an opportunity of hearing to the creator/host of content, given VideoLAN’s cluelessness it seems that this opportunity may not be afforded to affected parties in all cases. T
  • he lack of an opportunity to submit clarifications/replies by the creator/host violates the principles of natural justice.
  • It can also lead to erroneous decision making by the committee, that can have significant financial consequences for the blocked online service provider.

Third, role of Review Committee

  • A recent RTI has disclosed that the Review Committee, which is required to meet every two months to review orders of the committee, has not disagreed with a single decision of the committee.
  • This raises doubts on the effectiveness of the review mechanism which has been provided as a safeguard against excesses of the committee.

Fourth, Careful appilcation

  • Given that non-compliance with directions under the IT Rules can lead to loss of immunity from liability for content being hosted, it has been argued that intermediaries over-comply with these directions, which can have chilling effects on free speech.
  • The Supreme Court in Shreya Singhal has upheld the procedure enshrined in IT Rules, 2009 on the basis that it provides for adequate application of mind and transparency.
  • The government would do well to follow its own rules, in form as well as spirit.

Must Read: Section 69A of the Information Technology Act, 2000

Source: The Hindu

India’s labour reforms

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  • Mains: GS 3(Economy- Labour Reforms)

India’s “tryst with destiny” was to provide “Poorna swaraj” (i.e., full freedom) to all its citizens: political freedom, social freedom, and economic freedom.

After 75 years of independence, we examine whether we have been able to provide socio-economic freedom to one of the most deprived classes of or population: labourers

India’s fault lines:

State of Working India 2021:

  • ‘One Year of Covid­19’ brought out by Azim Premji University’s Centre for Sustainable Employment reported that 100 million jobs were lost during the April-May 2020 lockdown.
  • Though most of these workers had found employment by mid-2020, 15 million remained out of work.
  • Between 1980 and 1990, every 1% of GDP growth generated roughly two lakh new jobs; between 1990 to 2000, it decreased to one lakh jobs per per cent growth; and from 2000 to 2010, it fell to half a lakh only.
  • India’s gravest socio-economic problem is the difficulty a vast majority of citizens have in earning good livelihoods.
  • Their problem is not just employment. It is the poor quality of employment: insufficient and uncertain incomes, and poor working conditions, wherever they are employed — in factories, farms, service establishments, or homes.
  • The dominant ‘theory-in-use’ to increase employment is to improve the ease of doing business, with the expectation that investments in businesses will improve citizens’ ease of earning good livelihoods.
  • In this theory, large and formal enterprises create good jobs, and labour laws must be ‘flexible” to attract investments. Investors say the laws protect labour too much.

Labour reforms: Background

  • In India, labour is a subject in the Concurrent List, so both the Parliament and the state legislatures can enact laws on it.
  • Before the new labour codes were passed, there were more than 40 central laws and more than 100 state laws on labour and related matters.
  • The Second National Commission on Labour (2002) recommended that the central labour laws should be integrated into groups like: Industrial relations, Wages, Social security, Safety, Welfare and working conditions.
  • The Commission suggested simplification of the labour codes for the sake of transparency and uniformity.

The new labour codes:

In 2019-20, the Parliament enacted 4 labour codes to consolidate these multiple laws:

  • Code on Wages, 2019
  • Industrial Relations Code, 2020
  • Social Security Code, 2020
  • Occupational Safety, Health, and Working Conditions Code, 2020

Impact of reforms:

The V.V. Giri National Labour Institute’s interim report, “Impact Assessment Study of the Labour Reforms undertaken by the States”, provides insights into the impacts of the reforms so far.

  • The report has focused on the reform of the Industrial Disputes Act, which is to raise the limits of applicability of laws relating to terms of service and modes of dispute resolution (roles of unions) to 300 people.
  • The report spans the period 2004-05 to 2018-19. It focuses on Six States which have implemented reforms.
  • The report reminds readers that labour laws are only one factor affecting business investment decisions.
  • Investors do not go out to hire people just because it has become easy to fire them.
  • An enterprise must have a growing market for its products, and many things must be put together to produce for the market — capital, machinery, materials, land, etc. not just labour.
  • Therefore, it must be worthwhile to employ more people before firing them.
  • Reforms of labour laws have had little effect on increasing employment in large enterprises either.
  • The report says, employment in formal enterprises is becoming more informal.
  • Large investors can afford to use more capital and are also employing increasing numbers of people on short-term contracts, while perversely demanding more flexibility in laws.

Way forward: closing the gap

  • Fundamental reforms are required in the theory of economic growth: more GDP does not automatically produce more incomes at the bottom.
  • And the paradigm driving employment and labour policies must also change to enable the generation of better-quality livelihoods for Indian citizens, now and in the future.

To achieve this, fundamental reform is required in the ways policies are made. If the benefit of reforms is supposed to be the improvement of ease of earning, better livelihoods for all citizens and with more dignity, whether they are farmers, factory workers, or service employees, they must be listened to most of all, within their enterprises, and in the process of shaping policies.

Source: The Hindu

Baba’s Explainer – Integration of North East

Integration of North East


  • GS-2: Federalism and Challenges

India will be successful when the North East develops at par with the other developed states of India” – Narendra Modi.

Read Complete Details on Integration of North East

Daily Practice MCQs

Daily Practice MCQs

Q.1) Consider the following statements

  1. Monetary Policy Committee (MPC) is formed as per the provisions of Banking regulation Act, 1949.
  2. RBI Governor as its ex officio chairperson of MPC.
  3. RBI has to submit a report to the Union government if it is in breach of the inflation targets for three consecutive quarters.

Choose the correct statements:

  1. 1 and 2
  2. 2 and 3
  3. 1, 2 and 3
  4. 2 only

Q.2) Consider the following statements about NIDAAN Portal

  1. It is a first-of-its kind database of arrested narcotics offenders.
  2. The NIDAAN platform sources its data from the ICJS and the e-Prisons repository.

Choose the incorrect statements:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.3) Consider the following statements about Combined Maritime Forces (CMF)

  1. CMF is a multi-national naval partnership to promote security, stability and prosperity in world’s most important shipping lanes.
  2. The CMF grouping is commanded by a U.K. Navy Vice Admiral.

Choose the correct statements:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’19th August 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.

ANSWERS FOR 18th August 2022 – Daily Practice MCQs

Answers- Daily Practice MCQs

Q.1) – d

Q.2) – d

Q.3) – c

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