Daily Prelims Notes 13 November 2021

Daily Prelims Notes

13 November 2021

Table Of Contents

1. Landraces
2. Integrated Farming Systems
3. General Secretary of Rajya Sabha
4. Tribal Freedom Fighters of India
5. Off-budget borrowings
6. Norovirus
7. Non-Aligned Movement (NAM)
8. Next COP venues
9. United Nation’s World Food Programme (WFP)
10. National Achievement Survey
11. Kashi Vishwanath Temple
12. Permanent Commission for Women
13. Battle of Rezang La
14. Helmsman
15. Revenue Neutral Rate (RNR)
16. US inflation and impact on India

1. Landraces

Subject – Agriculture

Context – Among the winners of this year’s Padma awards is RahibaiPopere, popularly known as Seedmother, from Akole taluka of Ahmednagar, Maharashtra. Her Padma Shri is a recognition of her work that has helped save hundreds of landraces (wild varieties of commonly grown crops) at the village level.

Concept –

• Landraces refer to naturally occurring variants of commonly cultivated crops.
• These are as opposed to commercially grown crops, which are developed by selective breeding (hybrids) or through genetic engineering to express a certain trait over others.
  • With hybrid rice and wheat, for example, selective breeding over a period of time has allowed scientists to develop varieties that have higher yield or other desirable traits. Over the years, farmers have adopted these varieties.
• Biodiversity allows a natural mechanism for crops to develop traits to face challenging situations. However, given the large-scale human interference in crop selection, that ability is now lost in most commercially crops.
• Genetic diversity is nature’s survival mechanism. The wider the gene pool, the more the chance of developing a trait that can help in surviving extreme climate events.
• With proper agricultural practices, landraces can give better yield with lower input costs.
• Kalbhat is a unique landrace of scented rice. Over the years, this variant had almost vanished from cultivators’ fields as hybrid variants became popular. It has better climate resilience than popularly grown rice and can withstand flood or drought better.
• Today, landraces survive in only a few rural and tribal pockets, but they too are depleting for want of proper conservation. Traditional knowledge about the way these need to be grown, or how seeds are to be saved, is also vanishing.

2. Integrated Farming Systems

Subject – Agriculture

Context – Integrated farming systems emerge as possible climate adaptation solution

Concept –

• Integrated Farming System (IFS):- A sub system of a high level land use system like a village or a watershed which includes crop production, raising livestock, fishery, poultry, beekeeping etc. on a particular farm with a objective of higher profitability without altering ecological and socio-economic balance on one hand and to meet the national goals on the other hand.

Components Of Integrated Farming System

• Crops, livestock, birds and trees are the major components of any IFS.
• Crop may have subsystem like monocrop, mixed/intercrop, multi-tier crops of cereals, legumes (pulses), oilseeds, forage etc.
• Livestock components may be milch cow, goat, sheep, poultry, bees.
• Tree components may include timer, fuel, fodder and fruit trees.

Advantages of Integrated Farming System

• Higher food production to equate the demand of the exploding population of our nation
• Increased farm income through proper residue recycling and allied components
• Sustainable soil fertility and productivity through organic waste recycling
• Integration of allied activities will result in the availability of nutritious food enriched with protein, carbohydrate, fat, minerals and vitamins
• Integrated farming will help in environmental protection through effective recycling of waste from animal activities like piggery, poultry and pigeon rearing
• Reduced production cost of components through input recycling from the byproducts of allied enterprises
• Regular stable income through the products like egg, milk, mushroom, vegetables, honey and silkworm cocoons from the linked activities in integrated farming
• Inclusion of biogas & agro forestry in integrated farming system will solve the prognosticated energy crisis
• Cultivation of fodder crops as inter cropping and as border cropping will result in the availability of adequate nutritious fodder for animal components like milch cow, goat / sheep, pig and rabbit
• Firewood and construction wood requirements could be met from the agro forestry system without affecting the natural forest
• Avoidance of soil loss through erosion by agro-forestry and proper cultivation of each part of land by integrated farming
• Generation of regular employment for the farm family members of small and marginal farmers.

3. General Secretary of Rajya Sabha

Subject – Polity

Context – PC Mody replaces Ramacharyulu as Rajya Sabha secretary general

Concept –

Secretariat of Rajya Sabha

The Secretariat of Rajya Sabha was set up pursuant to the provisions contained in Article 98 of the Constitution. The said Article, which provides for a separate secretarial staff for each House of Parliament, reads as follows: –

(1) Each House of Parliament shall have a separate secretarial staff:  Provided that nothing in this clause shall be construed as preventing the creation of posts common to both Houses of Parliament. (2) Parliament may by law regulate the recruitment and the conditions of service of persons appointed to the secretarial staff of either House of Parliament. (3) Until provision is made by Parliament under clause

(2), the President may, after consultation with the Speaker of the House of the People or the Chairman of the Council of States, as the case may be, make rules regulating the recruitment and the conditions of service of persons appointed to the secretarial staff of the House of the People or the Council of States and any rules so made shall have effect subject to the provisions of any law made under the said clause.”

Till 30 September 1955, the conditions of service of the Officers and Staff of the two Secretariats continued to be governed by the Legislative Assembly Department (Conditions of Service) Rules, 1929, as amended and adapted from time to time. Thereafter, the Rajya Sabha Secretariat (Recruitment and Conditions of Service) Rules, 1957 (R&CS Rules) were framed and promulgated by the President in consultation with the Chairman, Rajya Sabha on 15 March 1957, in exercise of the powers conferred by the provisions contained in Article 98 of the Constitution.

The Rajya Sabha Secretariat functions under the overall guidance and control of the Chairman, Rajya Sabha. The main activities of the Secretariat inter alia include the following :-

(i) providing secretarial assistance and support to the effective functioning of the Council of States (Rajya Sabha);

(ii) payment of salary and other allowances to the Members of Rajya Sabha;

(iii) providing amenities as admissible to Members of Rajya Sabha;

(iv) servicing the various Parliamentary Committees;

(v) preparing research and reference material and bringing out various publications;

(vi) recruitment of manpower in the Rajya Sabha Secretariat and attending to personnel matters; and

(vii) preparing and publishing a record of the day-to-day proceedings of the Rajya Sabha and bringing out such other publications, as may be required concerning the functioning of the Rajya Sabha and its Committees.

In the discharge of his constitutional and statutory responsibilities, the Chairman, Rajya Sabha is assisted by the Secretary-General, who holds the rank of the Cabinet Secretary to the Government of India. The Secretary-General, in turn, is assisted by senior functionaries at the level of Secretary, Additional Secretary, Joint Secretary and other officers and staff of the Secretariat. Based on the recommendations of the Parliamentary Pay Committee way back in 1974, the Secretariat was restructured on functional basis into the following Services, which cater to the specific needs of the House and its Committee

• A secretary-general is appointed by the Chair of the respective House.
• According to the official profile of the position, “The Secretary General is appointed by Chairman Rajya Sabha from among those who have achieved their goals through long years of work in parliament, state legislatures or public service.”
• Work Responsibility –
  • Parliamentary Adviser to the Hon’ble Chairman, Rajya Sabha and through him to the House.
  • Administrative Head of the Secretariat of Rajya Sabha.
  • Overall in-charge of all administrative and executive functions on behalf and in the name of the Chairman.
  • Repository of the accumulated wisdom of the House; the keeper of his culture, traditions and precedents.
• The Secretary General is the third most senior official of the Rajya Sabha after the Chairman and Vice Chairman.
• In the warrant for primacy, he has a rank corresponding to the secretary of the cabinet of ministers.

4. Tribal Freedom Fighters of India

Subject – History

Context – PM Modi to lead first Tribal Day celebrations.

Concept –

Other Tribal freedom fighters –

To know about Constitutional Safeguards for Schedule Tribes, please refer October 2021 DPN.

5. Off-budget borrowings

Subject – Economy

Context – CAG flags Kerala’s off-budget borrowings to pay for welfare scheme

Concept –

• Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on the directions of the central government. Such borrowings are used to fulfil the government’s expenditure needs.
• But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.
• As a result, as a Comptroller and Auditor General report of 2019 points out, this route of financing puts major sources of funds outside the control of Parliament. Such off-budget financing is not part of the calculation of the fiscal indicators despite fiscal implications.
• In India, the off-budget financing is also excluded from the Fiscal Responsibility and Budget Management (FRBM) Act, which intends to bring transparency and accountability to the monetary actions of the government.

How are off-budget borrowings raised?

• The government can ask an implementing agency to raise the required funds from the market through loans or by issuing bonds.
• Other public sector undertakings have also borrows for the government.
• Public sector banks are also used to fund off-budget expenses.

6. Norovirus

Subject – Science and Tech

Context – 13 infected with Norovirus in Kerala

Concept –

• Norovirus, which infects people across age groups, is a bug similar to the diarrhoea-inducing rotavirus.
• Disease outbreaks typically occur aboard cruise ships, in nursing homes, dormitories, and other closed spaces.

Symptoms of Norovirus

• The initial symptoms of Norovirus are vomiting and/or diarrhoea, which show up one or two days after exposure to the virus.
• Patients also feel nauseous, and suffer from abdominal pain, fever, headaches and bodyaches. In extreme cases, loss of fluids could lead to dehydration.

Treatment for Norovirus

• The disease is self-limiting — the infection, even though it takes a lot out of the patient, normally lasts only two or three days, and most individuals who are not very young, very old, or malnourished can ride it out with sufficient rest and hydration.

How do you get Norovirus?

• Norovirus is highly contagious, and can be transmitted through contaminated food, water, and surfaces. The primary route is oral-faecal.
• One may get infected multiple times as the virus has different strains.
• Norovirus is resistant to many disinfectants and heat up to 60°C. Therefore, merely steaming food or chlorinating water does not kill the virus.
• The virus can also survive many common hand sanitisers.

How common is Norovirus infection?

• It is the most common pathogen implicated in outbreaks of gastrointestinal disease (inflammation of the stomach and intestines), according to the World Health Organization.
• The US Centers for Disease Control and Prevention estimates that about one out of every five cases of acute gastroenteritis worldwide is caused by Norovirus.

Prevention of Norovirus

• The basic precaution is also the most obvious — repeatedly washing hands with soap after using the lavatory or changing diapers.
• During outbreaks, surfaces must be disinfected with a solution of hypochlorite at 5,000 parts per million.
• Diagnosis is done by real-time reverse transcription polymerase chain reaction.
• No vaccines are available for the disease.

7. Non-Aligned Movement (NAM)

Subject – IR

Context – NAM at 60 marks an age of Indian alignment

Concept –

• The Non-Aligned Movement was formed during the Cold War as an organization of States that did not seek to formally align themselves with either the United States or the Soviet Union, but sought to remain independent or neutral.
• It was established in 1961 in Belgrade, former Yugoslavia under the leadership of the then Indian Prime Minister Pandit Jawaharlal Nehru, President of Egypt Gamal Abdel Nasser and the President of Yugoslavia Josip Broz Tito.
• The basic concept for the group originated in 1955 during discussions that took place at the Asia-Africa Bandung Conference held in Indonesia.
• The first NAM Summit Conference took place in Belgrade, Yugoslavia, in September 1961.
• It has 120 members as on April 2018 comprising 53 countries from Africa, 39 from Asia, 26 from Latin America and the Caribbean and 2 from Europe (Belarus, Azerbaijan). There are 17 countries and 10 international organizations that are Observers at NAM.
• The Non-Aligned Movement was founded and held its first conference (the Belgrade Conference) in 1961 under the leadership of Josip Broz Tito of Yugoslavia, Gamal Abdel Nasser of Egypt, Jawaharlal Nehru of India, Kwame Nkrumah of Ghana, and Sukarno of Indonesia.
• The purpose of the organization was enumerated in Havana Declaration of 1979 to ensure “the national independence, sovereignty, territorial integrity and security of non-aligned countries” in their struggle against imperialism, colonialism, neo-colonialism, racism, and all forms of foreign subjugation.
• During the cold war era the NAM played a vital role in stabilizing the world order and preserving peace and security. Non alignment of NAM doesn’t mean the neutrality of state on global issues, it was always a peaceful intervention in world politics.

NAM Functioning

• NAM does not have a permanent secretariat or a formal hierarchy.
• Its administration is rotational and non-hierarchy.
• NAM takes decisions by consensus, which need not be universal, but only requires substantial agreement.
• It has a Coordinating Bureau which is based at the UN in New York City.
• NAM meets every three years at the NAM Summit Conference of Heads of State.
• At the Summit, a chair is chosen, which is a post held for three years.
• In NAM, every member country has equal weight.
• The current chairperson of NAM is Ilham Aliyev, the President of Azerbaijan. He holds the post till 2022.

The 10 Principles of Bandung:

• Respect for fundamental human rights and of the objectives and principles of the Charter of the United Nations.
• Respect for the sovereignty and territorial integrity of all countries.
• Recognition of equality among all races and of the equality among all nations, both large and small.
• Non-interference of non-intervention into the internal affairs of another country.
• Respect the right of every nation to defend itself, either individually or collectively, in conformity with the Charter of the United Nations.
• Non-use of collective defence pacts to benefit the specific interests of any of the great powers.
• Refraining from acts or threats of aggression and use of force against the territorial integrity or political independence of any nation.
• Settlement of all international disputes by peaceful means.
• Promotion of mutual interest and cooperation.
• Respect for justice and international obligations.

8. Next COP venues

Subject – Environment

Context – Negotiators at COP26 brainstorm over draft

Concept –

• The 2021 UN Climate Change Conference, COP26, concluded recently at Glasgow.
• The 2022 edition of the Conference of Parties, or the 27th COP, will take place at Sharm El-Sheikh, Egypt and the 28th edition in 2023 will be held in the
• The COP26 will not unveil a treaty as in 2015 when the Paris Agreement came into being but is expected to guide implementation of the Paris Agreement, that exhorted countries to take steps to keep temperatures from rising beyond 2 degrees Celsius by the turn of the century and “pursue efforts to keep it” to 1.5 degrees Celsius

9. United Nation’s World Food Programme (WFP)

Subject – IR

Context – The United Nation’s World Food Programme (WFP) had been planning to send a consignment of wheat from India to deal with the unfolding hunger crisis in Afghanistan.

Concept –

• The World Food Programme is the world’s largest humanitarian organization, saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.
• As the international community has committed to end hunger, achieve food security and improved nutrition by 2030, one in nine people worldwide still do not have enough to eat.
• It was founded in 1961 by the Food and Agriculture Organization (FAO) and United Nations General Assembly (UNGA) with its headquarters in Rome, Italy.
• It is also a member of the United Nations Sustainable Development Group (UNSDG), a coalition of UN agencies and organizations aimed at fulfilling the Sustainable Development Goals (SDGs).
• The WFP assists 88 countries, and has assisted 97 million people (in 2019) which is the largest number since 2012.
• It works closely with the other two Rome-based UN agencies:
  • The Food and Agriculture Organization (FAO), which helps countries draw up policy and change legislation to support sustainable agriculture
  • The International Fund for Agricultural Development (IFAD), which finances projects in poor rural areas.
• The WFP has no independent source of funds, it is funded entirely by voluntary donations. Its principal donors are governments, but the organization also receives donations from the private sector and individuals.
• The WFP has been awarded with the Nobel Prize for Peace 2020 for its efforts to combat hunger, bettering conditions for peace in conflict-affected areas and preventing the use of hunger as a weapon of war and conflict.

Report Released by WFP

• Global Report on Food Crisis– The Global Report on Food Crises describes the scale of acute hunger in the world. It provides an analysis of the drivers that are contributing to food crises across the globe.
  • The report is produced by the Global Network against Food Crises, an international alliance working to address the root causes of extreme hunger.

10. National Achievement Survey

Subject – Governance

Context – Govt. to assess learning gaps via nationwide test

Concept –

• The first National Achievement Survey (NAS) in four years was conducted, in a bid to assess the competencies of children in Class 3, 5 and 8.
• Given that schools across the country were closed for 18 months from March 2020, and the vast majority of students did not have any access to remote education, the NAS is expected to reveal the level of learning losses caused by the shutdown.
• The survey test was conducted in language, mathematics and environmental studies in Classes 3 and 5 and language, mathematics, science, and social science in Class 8.
• The sampled schools include State and Union Government-run schools as well as private and aided schools.
• The test paper was provided in a multiple choice format in 22 different languages.
• The test was developed by the National Council of Educational Research and Training (NCERT), which will also analyse the results, while the Central Board of Secondary Education (CBSE) conducted the test.

11. Kashi Vishwanath Temple

Subject – Art and Culture

Context – PM to inaugurate Kashi Corridor project

Concept –

• Kashi Vishwanath Temple is one of the most famous temple in Varanasi, also known as the Golden temple dedicated to the Lord Shiva.
• It was constructed in the year 1780 by the Maratha monarch, Maharani AhilyabaiHolkar of the Indore.
• The Temple stands on the western bank of the holy river Ganga, and is one of the twelve Jyotirlingas, or Jyotirlingams, the holiest of Shiva Temples.
• The main deity is known by the names Shri Vishwanath and Vishweshwara literally meaning Lord of the Universe.
• Varanasi city was called Kashi in ancient times, and hence the temple is popularly called Kashi Vishwanath Temple.
• The Temple has been referred to in Hindu scriptures for a very long time as a central part of worship in the Shaiva Philosophy.
  • The temple is mentioned in the Puranas including the Kashi Khanda (section) of Skanda Purana.
• It had been demolished by many Muslim rulers many times, last time It was demolished by Aurangzeb, the sixth Mughal emperor who constructed the Gyanvapi Mosque on its site.

Architecture –

• Constructed in the 18th century in the Nagara style of architecture, it has five shikharas (spires), which start from the bottom and converge on the top.
• The main temple is quadrangle and is surrounded by shrines of other gods.
• There is a small well in the temple called the Jnana Vapi also spelt as GyaanVapi (the wisdom well).
• According to the structure of the temple, there is a Sabha Griha or Congregation Hall leading to the inner GarbhaGriha or Sanctum Sanctorum.
• It is locally known as ‘Monkey temple’ because of the large number of monkeys inhabiting the place.

Kashi corridor project

• Currently, a corridor is being constructed between Kashi Vishwanath temple and ManikarnikaGhat, consisting of various amenities for pilgrims.
• The project connects the Kashi temple with the ghats of the Ganga, with a paved walkway around 320 metres long and 20 metres wide.
• It will also have facilities for a museum, library, a facilitation centre for pilgrims and a MumukshaBhawan (salvation house).

Goddess Annapurna Idol

• Recently, an ancient idol of Goddess Annapurna was brought back to India after over a century from Canada.
• It will be placed in its original location – the Kashi Vishwanath temple.
• Goddess Annapurna: She is the goddess of food. She is also known as the manifestation of the goddess Parvati, partner to Lord Shiva.
  • The idol holds a bowl of kheer in one hand and a spoon in the other.
• Benares Style: The 18th-century idol, carved in the Benares style, was part of the collection at the MacKenzie Art Gallery at the University of Regina, Canada.

12. Permanent Commission for Women

Subject – Defense and Security

Context – Permanent commission for 11 women Army officers

Concept –

• Under the Short Service Commission (SSC) scheme, women were commissioned into the Army for a period of 10 years, extendable up to 14 years.
• Women were, however, restricted to roles in specified streams such as Army Education Corps, Corps of Signals, Intelligence Corps, and Corps of Engineers. These specified streams excluded combat arms such as infantry and armoured corps.
• While male SSC officers could opt for permanent commission at the end of 10 years of service, this option was not available to women officers. Women officers, were, thus, kept out of any command appointment, and could not qualify for government pension, which starts only after 20 years of service as an officer.
• However, in the February 2019 policy statement, the Government endorsed the permanent commission for SSC women officers in 10 streams of the ‘Combat Support Arms’ and ‘Services’ sections. But it was said that the women officers would not be offered any command appointments, and would serve only in staff posts.

Permanent Commission (PC) Vs. Short Service Commission (SSC)

• SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire.
• The officers inducted through the SSC usually serve for a period of 14 years. At the end of 10 years, the officers have three options.
• A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years.
• They can either select for a PC or opt-out or have the option of a 4-years extension. They can resign at any time during this period of 4 years extension.

13. Battle of Rezang La

Subject – History

Context – Revamped war memorial to open soon

Concept –

• Defence Minister Rajnath Singh will inaugurate the revamped war memorial at Rezang La in eastern Ladakh.
• The memorial, dedicated to those who laid down their lives in the Battle of Rezang La during the 1962 war, now includes the names of Army personnel who lost their lives in the violent clash at Galwan last year.

1962 battle of Rezang La – Rezang La was the site of a major battle of the 1962 Sino-Indian War, where a company of India’s 13 Kumaon battalion fought to the last man in an effort to block the Chinese PLA troops from crossing the ridge into the Chushul Valley.

2020 border standoff – During border standoff in summer, the Indian Army deployed troops along the Line of Actual Control south of the Pangong Tso, including at Rezang La and Rechin La.

• This was said to give them a commanding view of the Spanggur Gap and China’s “Moldo sector” (the deployments around the Spanggur Lake).

About Rezang La

• Rezang La, also called Rechin La is a mountain pass on the Line of Actual Control between Indian-administered Ladakh and the Chinese-administered Spanggur Lake basin that is also claimed by India.
• The pass is located on the eastern watershed ridge of the Chushul Valley that China claims as its boundary.
• It is at the head of the RezangLungpa valley, which houses a stream draining into the Spanggur Lake.

14. Helmsman

Subject – IR

Context – China’s Communist Party hails ‘helmsman’ Xi after ‘historic’ meet

Concept –

• A day after the Communist Party passed a “historical” resolution elevating the status of Chinese leader Xi Jinping on a par with its tallest past leaders, China’s ruling party referred to Mr. Xi as its “helmsman”, a title previously only reserved for Mao Zedong.
• An annual party meeting called a plenum passed its first “historical resolution” since 1981 — and only the third such declaration in its 100¬year history — that extolled Mr. Xi’s leadership and demanded loyalty to ensure his “core position” in the party.
• This was the third resolution on history passed by the party, and the previous two marked significant changes in its politics.
• In 1945, Mao Zedong passed a resolution that moved the party away from Stalinist influence and marked the start of Mao’s decades-long political and ideological dominance.
• In 1981, Deng Xiaoping passed a resolution that marked a move away from the excesses of Maoism and a one-man personality cult to launch the reform era. In keeping with the shift away from one-man rule, Deng was called a “paramount” leader but not a “helmsman” and he eschewed building a cult of personality.

15. Revenue Neutral Rate (RNR)

Subject – Economy

Context – A tax burden that attacks the federal rights of States

Concept –

• RNR is the rate at which tax revenue remains the same despite giving credit of duty paid on inputs and other factors.
• It is the rate of tax that allows the Government to receive the same amount of money despite changes in the tax laws.
• In the GST regime the revenue of the government would not be same in comparison with the present tax structure due to tax credit mechanism, removal of cascading effect , or otherwise.
  • Therefore an adjusted in tax rate is required to avoid reduction in revenue of the government. This adjusted Rate is termed as Revenue Neutral Rate (RNR).
• RNR is the good indicator of future requirement in calculating the adequate compensation to both state as well as central government.

16. US inflation and impact on India

Subject – Economy

Context – On Wednesday, the United States’ Labor Department reported that retail inflation had spiked to 6.2 per cent in October.

Concept –

What is inflation rate?

• It is the rate at which prices increase over a given period.
• Typically, in India, the inflation rate is calculated on a year-on-year basis.
  • In other words, if the inflation rate for a particular month is 10 per cent, it means that the prices in that month were 10 per cent more than the prices in the same month a year earlier.
• A high inflation rate erodes the purchasing power of people. Since the poor have less money to withstand fast-rising prices, high inflation hurts them the hardest.

Why is US inflation a matter of concern?

• On the face of it, Indians may not find a 6.2 per cent inflation rate a very sharp increase in prices.
• But in the US, this data is the largest year-on-year increase in the last three decades.
• Another way to put this data in perspective is that the Federal Reserve (or Fed), the US central bank, targets an inflation rate of just 2 per cent.
  • Seen in that context, it is clear why the US inflation rate has become a massive concern for its citizens.

What is happening in India?

• While most other economies were surprised by a spike in inflation in the wake of the pandemic, India was one of those rare major economies where high inflation predates the pandemic.
• As the chart shows, retail inflation had frequently been above the comfort zone of the Reserve Bank of India (RBI) — between 2 per cent and 6 per cent — for an extended period since late 2019.

Impact on India –

• When prices increase globally, it will lead to higher imported inflation. In other words, everything that India and Indians import will become costlier.
• High inflation in the advanced economies, especially the US, will likely force their central banks, especially the Fed, to abandon their loose monetary policy.
  • A tight money policy by the Fed and the rest would imply higher interest rates. That will affect the Indian economy in two broad ways.
    • One, Indian firms trying to raise money outside India will find it costlier to do so.
    • Two, the RBI will have to align its monetary policy at home by raising interest rates domestically.
  • That, in turn, may further raise inflation because the production costs would go up.