DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 7th January 2023

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  • January 7, 2023
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RBI- Integrated Ombudsman Scheme

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  • Prelims – Economy

Context: The Reserve Bank of India (RBI) recently released the Annual Report of the Ombudsman Schemes.

Key highlights of the report:

  • The volume of complaints received under the Reserve Bank of India’s ombudsman schemes and consumer education and protection cells stood at 4,18,184 in 2021-22, an increase of 9.39 per cent compared to the previous year.
  • In the fiscal year ended March 31, 2021, close to 3,82,292 complaints were received.
  • According to the annual report, Of the total complaints received in 2021-22, about 42 per cent were related to the digital modes of payment and transactions.

About Ombudsman:

  • A government official who deals with complaints made by ordinary people against public organizations.
  • This concept of Ombudsman arrived from Sweden.
  • It means an officer appointed by the Legislature to handle complaints against a service or administrative authority.
  • In India an Ombudsman is appointed to resolve grievances in the following sectors.
    • Insurance Ombudsman
    • Income Tax Ombudsman
    • Banking Ombudsman

About Integrated Ombudsman Scheme:

  • The Scheme was framed by the Reserve Bank in exercising the powers conferred on it under Section 35A of the Banking Regulation Act, 1949.
  • The Scheme integrates the existing three Ombudsman schemes of RBI namely,
    • the Banking Ombudsman Scheme, 2006;
    • the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and
    • the Ombudsman Scheme for Digital Transactions, 2019.
  • In addition to integrating the three existing schemes, the Scheme also includes under its ambit Non-Scheduled Primary Co-operative Banks with a deposit size of ?50 crore and above.
  • The Scheme adopts the ‘One Nation One Ombudsman’ approach by making the RBI Ombudsman mechanism jurisdiction neutral.
  • According to the central bank, the internal ombudsman shall be either a retired or a serving officer, not below the rank of deputy general manager or equivalent in any financial sector regulatory body, credit information companies, a non-banking financial company (NBFC) or bank.
  • He/she should possess necessary skills and experience of at least seven years in banking, non-banking finance, financial sector regulation or supervision, credit information, or consumer protection.

Some of the salient features:

  • A Centralised Receipt and Processing Centre has been set up at RBI, Chandigarh for receipt and initial processing of physical and email complaints in any language.
  • The responsibility of representing the Regulated Entity and furnishing information in respect of complaints filed by customers against the Regulated Entity would be that of the Principal Nodal Officer in the rank of a General Manager in a Public Sector Bank or equivalent.
  • The Regulated Entity will not have the right to appeal in cases where an Award is issued by the ombudsman against it for not furnishing satisfactory and timely information/documents.
  • RBI’s Executive Director-in charge of Consumer Education and Protection Department would be the Appellate Authority under the integrated scheme.

Source: Indian Express

Previous Year Question

Q.1) With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)

  1. The Governor of RBI is the Chairman of BBB.
  2. BBB recommends for the selection of heads for Public Sector Banks.
  3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

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

DNA mitochondrial profiling

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  • Prelims – Science and Technology

Context: Recently, Hair and bone samples of Shradha Walkar were sent for DNA mitochondrial profiling by police.

  • Mitochondrial DNA is the circular chromosome found inside the cellular organelles called mitochondria.
  • Located in the cytoplasm, mitochondria are the site of the cell’s energy production and other metabolic functions.
  • Offspring inherit mitochondria — and as a result mitochondrial DNA — from their mother.

About DNA mitochondrial profiling:

  • It examines biological evidence when nuclear DNA is present in very low quantities or when bones and hair are degraded.
  • It determines the mitochondrial DNA (mtDNA) sequence from samples such as hair, bones, and teeth.
  • It can be done where DNA extraction is difficult.
  • Mitochondria is extracted from the cell and genome sequence is then matched with the family.
  • Maternal inheritance of mitochondria allows scientists to compare it with maternally related individuals of a missing person.
  • Unique identifications are not possible using this analysis.

Source: Hindustan Times

Previous Year Questions

Q.1) Consider the following statements: DNA Barcoding can be a tool to:

  1. assess the age of a plant or animal.
  2. distinguish among species that look alike.
  3. identify undesirable animal or plant materials in processed foods.

Which of the statements given above is/are correct? (2022)

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

Q.2) With reference to the recent developments in science, which one of the following statements is not correct? (2019)

  1. Functional chromosomes can be created by joining segments of DNA taken from cells of different species.
  2. Pieces of artificial functional DNA can be created in laboratories.
  3. A piece of DNA taken out from an animal cell can be made to replicate outside a living cell in a laboratory.
  4. Cells taken out from plants and animals can be made to undergo cell division in laboratory petri dishes.

Q.3) Recombinant DNA technology (Genetic Engineering) allows genes to be transferred

  1. Across different species of plants.
  2. From animals to plants.
  3. From microorganisms to higher organisms.

Select the correct Solution using the codes given below. (2013)

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

Gaan Ngai festival

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  • Prelims – Art and Culture

Context: Recently Gaan Ngai festival was celebrated in the state of Manipur.

About Gaan Ngai festival:

  • Gann Ngai is a regional public holiday in the Northeastern Indian state of Manipur on the 13th day of the month of Wakching in the Manipuri calendar.
  • It falls in either December or January in the western calendar.
  • It is also known as Chakaan Gaan Ngai and is the biggest festival of Zeliangrong community.
  • Gann Ngai takes place after the end of the harvest season.
  • Gaan-Ngai literally means the festival of winter season. Gaan or Ganh means winter or dry season and Ngai means festival.
  • The Zeliangrong people, comprising the Zemei, Liangmei and the Rongmei tribes, are one of the major indigenous communities living in Manipur.
  • They also have sizable populations in the neighbouring states of Assam and Nagaland.
  • The most significant part of the festival is the worshipping of “Tingkao Ragwang”, which is the Supreme God.
  • This is a festival during which those who died in the previous year are given a ritual farewell or departure; their graves are beautified; dances are performed and a feast is held in honour of the dead, which is why this festival is sometimes known as the festival of the dead and the living.
  • At the beginning of this festival the head of the village creates a ‘new fire’ by rubbing bamboo cord with bamboo gauze placed under a piece of dry wood.
  • This traditional method of making fire is called “Mhai Lapmei”, meaning extraction of the sacred fire.

Source: NewsOnAir

Gangasagar Mela

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  • Prelims – Art and Culture

Context: Recently, West Bengal Chief Minister urged Central government to declare Gangasagar Mela as a ‘national mela’ (national festival).

About Gangasagar Mela:

  • Gangasagar is largest and oldest living tradition or festival in West Bengal.
  • It is celebrated during Makar Sankranti for a week since as early as 400 BCE on the island of Gangasagar in West Bengal’s 24 South Parganas District.
  • Gangasagar or Sagar Island is in the Ganges delta, lying on the continental shelf of Bay of Bengal about 100 kms south of Kolkata.
  • It is mentioned in both Ramayana and Mahabharata.
  • Pilgrimage started when First Kapil Muni’s temple was constructed by Queen Satyabhama in 430 AD.
  • Devotees take a sacred dip at the confluence of the Ganga and the Bay of Bengal known as Gangasagar which is an island.
  • It is India’s second largest pilgrimage gathering after the Kumbh Mela.

Source:  Hindustan Times

Previous Year Question

Q.1) Consider the following pairs:

Tradition                                                        State

  1. Chapchar Kut festival                      Mizoram
  2. Khongjom Parba ballad                  Manipur
  3. Thang-Ta dance                                Sikkim

Which of the pairs given above is/are correct? (2018)

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

Q.2) Consider the following pairs:

Traditions                         Communities

  1. Chaliha Sahib Festival            Sindhis
  2. Nanda Raj Jaat Yatra             Gonds
  3. Wari-Warkari                          Santhals

Which of the pairs given above is/are correctly matched? (2017)

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. None of the above

India’s kala-azar cases declined 98.7% since 2007

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  • Prelims: Diseases

In News: Around 99.8% endemic blocks in India have achieved elimination status

  • Kala-azar cases in India fell to 834 in 2022 from 44,533 in 2007 — a 98.7 per cent decline.
  • As many as 632 endemic blocks (99.8 per cent) spread across Bihar, Uttar Pradesh, Jharkhand and West Bengal have received elimination status (less than one case per 10,000).
  • Only one block (Littipara) of Pakur district, Jharkhand is in the endemic category (1.23 cases / 10,000 population)


  • Visceral leishmaniasis or kala-azar is the most serious form of the disease and as of November 2022, about 89 per cent of the global cases were reported from eight countries: Brazil, Eritrea, Ethiopia, India, Kenya, Somalia, South Sudan and Sudan
  • India contributes 11.5 per cent of total cases reported globally.
  • The disease mainly affects poor people in Africa, Asia and Latin America, and is associated with malnutrition and poor housing, population displacement, weak immune system and lack of resources


  • After malaria, kala-azar is the deadliest parasitic disease in the world.
  • It is one of the three conditions in the disease group called leishmaniasis caused by the protozoa parasite Leishmania.
  • The parasite is transmitted to humans by the bite of an infected female phlebotomine sandfly, a tiny 2-3 mm long insect vector.
  • This type of leishmaniasis affects the internal organs, usually the spleen, liver and bone marrow.
  • Some people have no symptoms. For others, symptoms may include fever, weight loss and swelling of the spleen or liver.
  • Medication exists to kill the parasites. If left untreated, severe cases are typically fatal.
    • Up to 20% of the patients who are correctly treated and cured, develop a skin condition called Post-Kala-Azar Dermal Leishmaniasis (PKDL) which surfaces within months to years after treatment.
    • These patients can contain large amounts of parasites in their skin lesions, making them an important source of transmission.

Steps being taken by India to Eliminate this Disease

  • Development of a plan for the “unreached poorest” or underprivileged sections in endemic areas.
  • Leveraging of Kala-azar elimination programme within POSHAN Abhiyaan for maximum benefit at community level.
  • Exploration of the opportunity of providing improved housing under the flagship program of the Prime Minister Awas Yojana-Gramin (PMAY-G), along with rural electrification, testing, treatment and periodic high-level review, incentivising through award distribution.
  • Exploration of the opportunity of providing improved housing under State Schemes.
  • Involvement of Rural Health Practitioners (RHPs)
  • Co-ordination with the rural development department and engage with Panchayati Raj functionaries for awareness, community engagement, environment management and social empowerment.
  • Supporting the states in active case detection, surveillance, treatment as well as supply of diagnostic kits, medicines, sprays.

Source: Down to Earth

Endangered Asian elephant in Nilgiri Biosphere Reserve

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  • Prelims: Conservation

In News: A recent article says the endangered Asian Elephant has lost most of its “optimal” habitat: flat terrain that is easily navigable.

Conserving elephants in the southernmost western ghats

  • The Western Ghats is an escarpment running north–south along the western coastline of India, interrupted towards the south by the low-lying Palghat Gap that separates the northern from the southern elephant populations.
  • The northern part of the WG includes the Nilgiri Biosphere Reserve [NBR] and its surrounding PAs [protected areas], which contain the largest remaining population of wild elephants, ca. 6000 animals.
  • Nilgiris Elephant Corridor: The corridor is situated in the ecologically fragile Sigur plateau, which connects the Western and the Eastern Ghats and sustains elephant populations and their genetic diversity. It is situated near the Mudumalai National Park in the Nilgiris district.

Challenges for the Elephants

  • Human Encroachment: Human settlements and crop cultivation have hindered the movement of the elephants, keeping them confined to the hilly areas, considered sub-optimal habitats.
  • Narrow Passage Width + Interception: In these sub-optimal habitats, their chances of survival are lower due to dangerous terrain for animals of this size.
    • Study shows that when barriers are erected, particularly in areas with slopes, their movement is blocked and gene flow reduced.
    • This could ultimately lead to increasing the extinction risk of this endangered species.
    • Presence of highways and Railway lines

What happens when the movement is restricted and gene flow reduced?

  • There is more in-breeding
  • Low genetic diversity
  • Pushing up chances of disease
  • Lowering fertility rates

A 2021 paper published in the scientific journal  Global Ecology & Conservation found moderate levels of genetic differentiation between the northern and southern populations, indicating limited gene flow between the two regions.

A blueprint for conservation

  • Students in the Nilgiris are being sensitised on the need to protect elephants.
  • Ironically, most elephant reserves in India are found in mountainous habitats. Enclosing protected areas without ensuring connectivity through maintaining corridors for elephants to pass through severs gene flow between populations.
  • Project Elephant:
    • It is a centrally sponsored scheme and was launched in February 1992 for the protection of elephants, their habitats and corridors.
    • The Ministry of Environment, Forest and Climate Change provides the financial and technical support to major elephant range states in the country through the project.

About Nilgiri Biosphere Reserve

  • The first biosphere reserve in India established in the year 1986
  • States: Located in the Western Ghats Tamil Nadu, Kerala and Karnataka
  • Exemplifies the tropical forest biome which portrays the confluence of Afro-tropical and Indo-Malayan biotic zones of the world.
  • One of the noted Biodiversity Hotspots (regions having highest density of endemic species) for speciation in the tropics.
  • Vegetation: Evergreen, semi evergreen, moist deciduous montane sholas and grassland types of vegetation
  • Fauna: Nilgiri tahr, Nilgiri langur, slender loris, blackbuck, tiger, gaur, Indian elephant and marten, Freshwater fishes such as Nilgiri danio (Devario neilgherriensis), Nilgiri barb (Hypselobarbus dubuis) and Bowany barb (Puntius bovanicus) are endemic to this Biosphere Reserve.
  • Tribal population: Todas, , Kurumbas, Paniyas, Adiyans, Edanadan Chettis, Cholanaickens, Allar, Malayan, Kotas, Irullas, etc.

Source: The Hindu

Mission Olympic Cell

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  • Prelims: Sports


  • A dedicated body created to assist the athletes who are selected under the Target Olympic Podium (TOP) scheme.
  • The MOC is under the chairmanship of the Director General, Sports Authority (DG, SAI).
  • The committee meetings are attended by representatives of the respective national sports federations (NSFs) and project officers of the SAI besides other members.
  • The idea of the MOC is to debate, discuss and decide the processes and methods so that the athletes receive the best assistance.
  • The MOC also focuses on selection, exclusion and retention of athletes, coaches and training institutes that can receive TOPS assistance.

The selected athletes can seek assistance under the scheme for the following:

  • Customized training under reputed coaches at institutes having world-class facilities.
  • Participation in international competition.
  • Purchase of equipment.
  • Services of personnel like physical trainer, sports psychologist, mental trainer and physiotherapist.
  • Any other support specific to the sport discipline.
  • Out-of-pocket allowance of INR 50,000 a month to the athletes as an incentive

Target Olympic Podium Scheme

  • Formulated in July 2014 under the overall ambit of National Sports Development Fund (NSDF) with the aim to identify, groom and prepare potential medal prospects for the olympic and paralympic games.
  • It is a flagship program of the Ministry of Youth Affairs and Sports.
  • The idea of the scheme is to also keep an eye on the future and fund a developmental group of athletes who are medal prospects for the Olympic games in Paris in 2024 and Los Angeles in 2028.

Source: PIB

National Council of Science Museums (NCSM)

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  • Prelims: Science & Tech


  • An autonomous society under the Ministry of Culture, Government of India
  • Formed on April 4, 1978
  • Headquarters: Kolkata
  • The NCSM initiated process to set up National level science museums/centres, Regional Science Centres and District Science Centres located in metropolis, state capitals and district headquarters respectively.
  • Central Research & Training Laboratory (CRTL), in Kolkata is the Council’s central hub for professional training, research and development.
  • In addition, NCSM develops Science Centres/museums for different States and Union Territories of India.
  • Collaborated internationally for development of Museum/Science Centres or for galleries such as Rajiv Gandhi Science Centre, Mauritius, ‘India’ gallery on Buddhism at ‘International Buddhist Museum’, Sri Lanka etc.
  • NCSM strives to communicate Science and educate masses by its Mobile Science Exhibitions, Lectures and Demonstrations, Training and Workshops, Publications etc. NCSM has also sent exhibition to countries like Trinidad and Tobago, Guyana, Russia, USA, Bhutan, China, Bangladesh, Bulgaria, France and the journey continues.

News Source: PIB

Nehru Memorial Museum & Library (NMML)

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  • Prelims: Art & Culture


  • Established in the memory of Jawaharlal Nehru (1889-1964)
  • An autonomous institution under the Ministry of Culture, Government of India
  • Located in the majestic Teen Murti House, the official residence of the first Prime Minister of India.
  • It has four major constituents, namely:
    1. Memorial Museum
    2. A library on modern India
    3. A Centre for Contemporary Studies
    4. The Nehru Planetarium.
  • The NMML houses a specialized library which has been designed and developed as a specific research and reference centre on colonial and post-colonial India with its very rich and varied collection of books, journals, photographs and other resource materials on microfilm and microfiche.
  • The NMML has a rich manuscript section. It also acquires and preserves private papers of distinguished individuals and records of political and other non-official organizations, associations and societies that played a significant role in the development of modern India. These archival materials which form the primary source of information for research are made available to scholars.

News Source: PIB

Geospatial Mapping of the Cooperatives

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  • Mains – GS 2 (Governance) and GS 3 (Science and Technology)

Context: Recently, a national database on cooperatives has been initiated by the Ministry of Cooperation for single-point access to information on cooperatives of different sectors and to develop a process for better understanding of cooperatives.

Key Highlights:

  • In the first phase of development of the National Cooperative Database, data collection of cooperatives of three sectors – primary agricultural credit societies, dairy and fisheries – is being taken up.
  • Maharashtra has the highest number of cooperative societies, followed by Uttar Pradesh.

About Geospatial data Infrastructure:

  • A Spatial Data Infrastructure, also called geospatial data infrastructure, is a data infrastructure implementing a framework of geographic data, metadata, users and tools that are interactively connected in order to use spatial data in an efficient and flexible way.

About Cooperative society:

  • Cooperatives are organizations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace.
  • This can mean different kinds of arrangements, such as using a common resource or sharing capital, to derive a common gain that would otherwise be difficult for an individual producer to get.
  • Amul is perhaps the best-known cooperative society in India.
  • On July 6, 2021, the government carved out a separate Cooperation Ministry.

Constitutional Provision:

  • Cooperatives are a state subject in seventh schedule of the Indian Constitution.
  • However, there are many societies whose members and areas of operation are spread across more than one state.
  • g. most sugar mills along the districts on the Karnataka-Maharashtra border procure cane from both states.
  • Through the 97th constitutional amendment, Part IXB (The Co-Operative Societies) was inserted into the Constitution.
  • The right to form cooperative societies was included as Right to Freedom under article 19 (1) under part III of the Indian Constitution.
  • Article 43-B (Promotion of Cooperation societies) was inserted as one of the Directive principles of state policy.

Report of the Geospatial Infrastructure in India:

  • National Geospatial Policy 2022 provides the framework to develop geospatial infrastructure, skills and knowledge, standards and businesses.
  • By 2030, the government will look to establish an Integrated Data and Information Framework, under which a Geospatial Knowledge Infrastructure will be developed.
  • A high-resolution topographical survey and mapping as well as a high-accuracy Digital Elevation Model for the entire country will be developed by 2035.
  • The national database for cooperatives needs to have geospatial database creation with geo-referencing of cooperative societies to make a decision-support model.

Significance of Geospatial Mapping of Cooperative Societies:

  • Understanding of the Heterogeneity and Diversity: The cooperative movement is all set for acceleration of membership.
    • The plan of acceleration requires an understanding of the heterogeneity and diversity in spatial distribution.
  • Analyzing the Polarisation of Cooperatives: The distribution of cooperative societies reflects polarization of societies in a few States in the west and south while the number of cooperative societies in the east and northern parts is low.
    • Geospatial mapping of these cooperatives will help to analyze the reason for such polarization.
  • District-wise mapping of cooperatives: District-wise mapping of cooperatives along with database collection is essential to provide a more precise picture of cooperatives at the State and national levels.
    • The advanced geospatial tools and technologies will help in predicting, analyzing, modelling, and visualizing spatially explicit information.
  • Understanding the Contrasting Diversities: Some contrasts are seen like nil dairy cooperatives in the North-East States of Manipur, Nagaland, Mizoram, Meghalaya, while Sikkim is better positioned.
  • Fisheries cooperatives are also formed around inland water resources in contrast to coastal lines in the western and eastern parts of the country.
  • It is essential to map these contrasting diversities and analyze the reasons, which could be the resource base of the State.
  • It is essential to undertake research on the major parameters that contribute to the development of such societies and their distribution in specific regions.

Way Forward:

  • Thematic GIS mapping along with research and analysis of the distribution of cooperative societies is to be committed towards addressing the developmental issues at the grassroots level.
  • The proposed database shall facilitate all stakeholders in policy-making and implementation to strengthen the cooperative movement in the country.

The geospatial mapping of the cooperative ecosystem will generate ease of doing business outcomes and the potential to be utilized to conduct in-depth mapping and analysis which will be of immense help to planners, managers and administrators in quickly storing, retrieving and updating the required information for the management of cooperatives.

Source:  The Hindu

Previous Year Questions

Q.1) With reference to Urban Cooperative Banks in India, consider the following statements:

  1. They are supervised and regulated by local boards set up by the State Governments.
  2. They can issue equity shares and preference shares.
  3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1996

Which of the statements given above is/are correct? (2021)

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

Q.2) Consider the following statements:

  1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
  2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct? (2020)

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

Draft New Industrial Policy

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  • Mains – GS 2 (Governance) and GS 3 (Economy)

Context: Recently, the draft – Statement on Industrial Policy 2022 Make in India for the world – has been circulated to different ministries for their views and comments.

Key highlights of the Draft New Industrial Policy:

  • Prepared By the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
  • Setting up of a development finance institution to provide finance at competitive rates
  • Considering using some part of foreign exchange reserves for such funding.
  • Aims in addressing issues and challenges of industry through certain policy measures to foster and create an innovative and competitive industrial ecosystem in the country.

Objectives of the Draft New Industrial Policy:

  • Focus on competitiveness and capability;
  • Economic integration and moving up the global value chain;
  • Promoting India as an attractive investment destination;
  • Nurturing innovation and entrepreneurship; and
  • Achieving global scale, and standards.

Made in India brand:

  • The scheme could serve as a platform for manufacturers to demonstrate local value addition which can enhance the country’s credibility as a source of quality products.
  • It is making finance accessible to industry and for marketing the Made in India brand.

Evolution of  Industrial Policy in India:

  • The quest for industrial development started soon after independence in 1947.
  • This will be the third industrial policy after the first in 1956 and the second in 1991. It is likely to replace the industrial policy of 1991 which was prepared against the backdrop of the balance of payment crisis.
  • The Industrial Policy Resolution of 1948 defined the broad contours of the policy delineating the role of the State in industrial development both as an entrepreneur and authority.
  • This was followed by comprehensive enactment of Industries (Development & Regulation) Act, 1951 (referred as IDR Act) that provides for the necessary framework for implementing the Industrial Policy and enables the Union Government to direct investment into desired channels of industrial activity inter alia through the mechanism of licensing keeping with national development objectives and goals.
  • Economic reforms initiated since 1991 envisages a significantly bigger role for private initiatives.

Issues associated:

  • The potential role of industrial policy has been consistently downplayed in developing countries outside of East Asia ever since the early 1980s after the growing dominance of the orthodox paradigm with well-known consequences in much of India, Latin America and also sub-Saharan Africa.
  • Industrial policies are more focused on large firms and many of the industries currently chosen to be under PLI (production linked incentives) are highly capital- and skill-intensive.
  • Even in Japan and South Korea, where industrial policy has been otherwise successful, it has often mainly helped large firms.
  • In a world of geo-political conflicts and supply chain disruptions, national security is often considered a major goal.
    • Hence sometimes resources are less allotted to the industrial sector .
  • Indian politicians and bureaucracy are more comfortable with “top-down” over-centralised policies.
  • The government had failed to instil confidence even as its policies till now had crippled the construction, manufacturing, real estate, pharma and other major contributors to the economy.
  • Lakhs of workers have lost job opportunities because of the retrogressive policies.
  • The role of industrial policy is not only to prevent coordination failures but also to avoid competing investments in a capital-scarce environment.
  • Excess capacity leads to price wars, adversely affecting profits of firms — either leading to bankruptcy of firms or slowing down investment, both happening often in India (witness the aviation sector)
  • Imperfect information with respect to firm-level investments in learning and training; and lack of information and coordination between technologically interdependent investments.
  • Industry’s inadequate expenditure on research and development (R&D) and micro, the small and medium enterprises sector facing tough competition from cheap imports from China and other countries
  • Lack of human capital has been a major constraint upon India historically being able to attract foreign investment (which Southeast Asian economies succeeded in attracting).

Suggestive measures:

  • The implementation of an integrated investment promotion strategy by involving district, state, national and international market synergies is needed.
  • Leveraging fintech and encouraging MSMEs to choose the corporate bond market.
  • Accepting intellectual property rights as collaterals for loans.
  • Rolling out social security schemes for women workers, and inclusion of labour-intensive industries under the production-linked incentive scheme.
  • Enabling supply chain financing.
  • Encouraging microfinance institutions to form cooperative groups and finance micro-enterprises at affordable rates.
  • Providing performance-based loans and incentives for innovation and green growth.
  • Incentivising public procurement to promote Make in India, creating a national digital grid, developing a robust data protection regime, setting up of a technology fund, and creating a task force to continuously identify skill gaps.
  • On nurturing innovation, the creation of innovation zones at the level of urban local bodies and the formulation of a national capacity development program should be done.

Source: Economic Times

Practice MCQs

Daily Practice MCQs

Q.1) Consider the following statements regarding Nilgiri Bioshpere reserve:

  1. It spreads across four states only
  2. It is the first biosphere reserve in India established in the year 1986
  3. It spreads across both western ghats and eastern ghats

Which of the statements given above is/are correct?

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

Q.2) Consider the following statements regarding Mission Olympic Cell:

  1. The MOC is under the chairmanship of the Director General, Sports Authority.
  2. It is a dedicated body created to assist the athletes who are selected under the Target Olympic Podium (TOP) scheme.

Which of the statements given above is/are correct?

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

Q.3) The National Council of Science Museums works under the aegis of

  1. Ministry of Culture
  2. Ministry of Earth Science
  3. Ministry of Science and Technology
  4. None of the above

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

ANSWERS FOR ’ 7th January 2023 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.st

ANSWERS FOR 6th January- Daily Practice MCQs

Answers- Daily Practice MCQs

Q.1) – a

Q.2) – b

Q.3) – d

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