Daily Prelims Notes 24 January 2024

Daily Prelims Notes

24 January 2024

Table Of Contents

1. Cauvery Water Regulation Committee an unbiased platform, says Union Minister
2. 22 ‘Vaibhav’ Fellows to build long-term research synergy
3. Serum Institute of India joins global network to boost production of affordable outbreak vaccines
4. Indians consuming rice and wheat low in food value, high in toxins: ICAR study
5. Is right to establish minority institution contingent on State recognition: SC to govt
6. How physicists are making sense of the mystery of pulsar glitches
7. Former Bihar Chief Minister Karpoori Thakur to be awarded Bharat Ratna posthumously
8. Direct tax-GDP ratio rose to 15-year high in FY23, tax buoyancy dipped
9. Indian bourses now fourth-largest with combined stock value of $4.33 trillion
10. Income Inequality Trends in India

1. Cauvery Water Regulation Committee an unbiased platform, says Union Minister

Subject :Polity

Section: National body

Context:

• The Cauvery Water Regulation Committee (CWRC) is an unbiased platform working towards best management of water resources.
• All India Secretaries Conference on Water Vision @2047-Way Ahead– Organised by the National Water Mission of the Ministry of Jal Shakti, and coordinated by the Tamil Nadu Water Resources Department.

Improvements in groundwater management in India:

• Enhanced aquifer mapping, leading to evidence-based management and a significant reduction in overexploited and critical groundwater areas.
• Groundwater assessment units have shown a near 10% improvement due to better recharge strategies.
• The frequency of aquifer mapping has been increased.
• Groundwater mapping has covered nearly 25 lakh sq. km. in India.
• Initiatives like the Atal Bhujal Yojana to rejuvenate stressed aquifers and identify areas needing recharge.
• Recycle and reuse policy.

About the Cauvery water dispute:

• The dispute is related to a long-standing conflict over the sharing of water from the Cauvery River.
• It involves 3 states and one Union Territory: Tamil Nadu, Kerala, Karnataka and Puducherry.
• The dispute revolves around how the river water should be distributed among these states for various uses, including irrigation, drinking water, and industrial purposes.

Formation of the Cauvery Water Disputes Tribunal and its final award:

• In accordance with Section 4 of the Inter-State Water Disputes Act, 1956, the Cauvery Water Disputes Tribunal (CWDT) was formed in June 1990.

• Final Award of CWDT (2007): After 17 years, in February 2007, the CWDT issued its final award. It allocated the Cauvery basin water (740 TMC in a normal year) as follows: Tamil Nadu – 419 TMC, Karnataka – 270 TMC, Kerala – 30 TMC, and Pondicherry – 7 TMC.
  • Additionally, 10 TMC was reserved for environmental purposes and 4 TMC for inevitable outlets into the sea.
  • The tribunal also called for a monitoring authority but did not detail a formula for water shortage situations, stating that allocations should be proportionally reduced.
• Subsequent Developments: The government notified the order in 2013 following a Supreme Court directive. Tamil Nadu appealed to the Supreme Court, alleging Karnataka’s non-compliance with the tribunal’s award. In 2018, the Supreme Court largely upheld the CWDT’s arrangements, slightly altering the allocations: Karnataka – 284.75 TMC, Tamil Nadu – 404.25 TMC, Kerala – 30 TMC, and Puducherry – 7 TMC. The Court declared Cauvery a national asset and directed the central government to notify the Cauvery Management Scheme.
• Cauvery Water Management Scheme (2018): The central government formed the ‘Cauvery Water Management Authority’ (CWMA) and the ‘Cauvery Water Regulation Committee’ (CWRC) in June 2018 to implement the scheme.
  • The Cauvery Water Regulation Committee (CWRC) was later established to implement and monitor the CWDT’s award and regulate the distribution of water according to its provisions.
  • The committee’s responsibilities include monitoring water releases from Karnataka’s reservoirs and ensuring that the allocated amounts of water are delivered to Tamil Nadu, Kerala, and Puducherry as per the established formula.

Constitutional Provisions:

• Entry 17 of the State List deals with water i.e., water supply, irrigation, canal, drainage, embankments, water storage and hydropower.
• Entry 56 of the Union List empowers the Union Government for the regulation and development of inter-state rivers and river valleys to the extent declared by Parliament to be expedient in the public interest.
• According to Article 262, in case of disputes relating to waters:
  • Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State River or river valley.
  • Parliament may, by law, provide that neither the Supreme Court nor any other court shall exercise jurisdiction in respect of any such dispute or complaint as mentioned above.

Source: TH

2. 22 ‘Vaibhav’ Fellows to build long-term research synergy

Subject: S&T

Section: Msc

Context:

• The Department of Science and Technology (DST) in India announced the first batch of fellows for the Vaibhav scheme, aimed at attracting Indian-origin scientists from abroad for short-term collaborations.

Details

• This initiative includes twenty-two scientists, primarily from North American and European institutions like the California Institute of Technology, the University of Oxford, the University of Michigan, the University of Geneva, the University of Waterloo, Canada, and the University of Oslo.
• These fellows will spend one to two months annually, for up to three years, at Indian institutes such as the Indian Institute of Science, the Indian Institutes of Technology, the Indian Institutes of Science Education and Research, and the Tata Institute of Fundamental Research.
• Two “distinguished fellowships” were awarded to senior professors Arogyaswami Paulraj from Stanford University and Jitendra Malik from the University of California, Berkley.

VAIBHAV Fellowship Programme:

• The Vaibhav scheme, launched in June 2023 following Prime Minister Narendra Modi‘s call to more closely involve the Indian diaspora in India’s development, is similar to the Visiting Advanced Joint Research Faculty (Vajra) scheme initiated in 2018.

Key Features of the VAIBHAV Fellowship Programme:

• The programme will focus on 18 identified knowledge verticals, including quantum technology, health, pharmaceuticals, electronics, agriculture, energy, computer sciences, and material sciences, among others.
• Eligibility: The fellowship is open to outstanding scientists and technologists of Indian origin (Non-resident Indians (NRI)/ Persons of Indian Origin (PIO)/Overseas Citizens of India (OCI) who are actively engaged in research activities in their respective countries.
• Selected fellows will have the opportunity to work in collaboration with Indian Higher Educational Institutions (HEIs), universities, and public-funded scientific institutions.
• They may spend up to two months per year, for a maximum of three years, at an Indian institution of their choice.
• Fellowship Grant: VAIBHAV fellows will receive a monthly fellowship grant of INR 4,00,000, which will support their research activities during the collaboration period.
• Travel, Accommodation, and Contingencies: The fellowship will cover international and domestic travel expenses, accommodation, and contingencies, ensuring a conducive research environment for the fellows.

‘Visiting Advanced Joint Research Faculty’ (VAJRA) scheme- 2018:

• In a bid to bring together Indian scientists abroad and India-based researchers for conducting joint research in India, the Department of Science and Technology (DST) has launched a scheme named ‘Visiting Advanced Joint Research Faculty’ (VAJRA).
• Features:
  • The Visiting Advanced Joint Research (Vajra) faculty scheme is a dedicated programme for foreign scientists and academicians, with emphasis on non-resident Indians, persons of Indian origin and overseas citizens of India to work as adjunct faculty in the government-funded academic and research institutions.
  • Under this scheme, scientists or senior researchers abroad – of Indian origin or otherwise – can collaborate with faculties here.
  • Under the scheme, foreign researchers would receive endowments at par with those in their own countries. The endowments for faculties would be US $15,000 in the first month of residency and US $10,000, for the remaining months.
  • The idea of the scheme is to bring the best of the world to India and conduct research here. The broad areas of research like energy, health, advance material and others would be promoted under the scheme.

Source: TH

3. Serum Institute of India joins global network to boost production of affordable outbreak vaccines

Subject: IR

Section: International Org

Context:

• The Serum Institute of India (SII) is joining the CEPI network (Coalition for Epidemic Preparedness Innovations) to enhance vaccine production capabilities in the Global South.

Details:

• This collaboration aims to support faster, more agile, and equitable responses to future disease outbreaks. CEPI’s ambitious goal is to have vaccines ready for initial authorization and large-scale manufacturing within 100 days of identifying a pandemic pathogen. The inclusion of SII in this network is expected to significantly boost vaccine production efforts in the Global South and help achieve the 100 Days Mission.
• This initiative combines the rapid development of vaccines with improved surveillance for earlier detection of pandemics, along with interventions like testing, contact tracing, and social distancing to suppress disease transmission. CEPI believes this approach will give the world a better chance to contain and control future pathogenic threats, thereby avoiding the devastating impacts seen with COVID-19.
• The manufacturing network will focus on vaccine producers in the Global South, particularly in regions at high risk of outbreaks from viruses like Lassa Fever, Nipah, Disease X, and other pathogens prioritized by CEPI. The Global South generally includes Africa, Latin America, the Caribbean, most of Asia (excluding a few countries), and Oceania (excluding Australia and New Zealand).
• CEPI is investing up to $30 million to expand SII’s capacity for rapid response to infectious disease outbreaks. This investment will enhance SII’s ability to quickly supply investigational vaccines during epidemics and pandemics. It will enable swift technology transfer to partners at the onset of an outbreak, facilitating rapid production and equitable distribution of affordable vaccines.

Coalition of Epidemic Preparedness for Innovation (CEPI):

• The CEPI is a foundation that takes donations to finance independent research projects to develop vaccines against emerging infectious diseases (EID).
• It is focused on the WHO’s “blueprint priority diseases.
• These diseases include the Middle East respiratory syndrome-related coronavirus (MERS-CoV), the SARS coronavirus 2 the Nipah virus, the Lassa fever virus, and the Rift Valley fever virus, as well as the Chikungunya virus and the hypothetical, unknown pathogen “Disease X”.
• CEPI investment also requires “equitable access” to the vaccines during outbreaks.
• CEPI was conceived in 2015 and formally launched in 2017 at the World Economic Forum (WEF) in Davos, Switzerland.

Source: TH

4. Indians consuming rice and wheat low in food value, high in toxins: ICAR study

Subject: S&T

Section: Biotechnology

Context:

• A recent study led by scientists from the Indian Council of Agricultural Research (ICAR) suggests that the nutritional value of rice and wheat consumed in India has decreased.

Study findings:

• The study found that over the past 50 years, the concentration of essential nutrients like zinc and iron in rice and wheat has significantly decreased.
• This decline is attributed to the focus of breeding programs on developing high-yielding varieties for food security, without considering nutrient uptake from the soil.
• Consequently, modern cultivars are less efficient in absorbing nutrients like zinc and iron.
• The study, an extension of 2021 research, revealed that high-yielding rice and wheat varieties have lost up to 45% of their food value in the last five decades. This could lead to the grains becoming impoverished for human consumption by 2040. Additionally, the study found a dramatic increase in arsenic levels in rice.
• The research highlights the impact of the Green Revolution on India’s nutritional security.
• To address this issue, agricultural scientists are exploring landraces and wild species of cultivated varieties.
• The Indian government has launched a bio-fortification project, and ICAR institutes have developed 142 bio-fortified varieties. However, these varieties are not yet widely popularized or adopted by farmers.

What is biofortification?

• Biofortification is the process of increasing the nutritional value of food crops by increasing the density of vitamins and minerals in a crop through either conventional plant breeding; agronomic practices or biotechnology. Examples of these vitamins and minerals that can be increased through biofortification include provitamin A Carotenoids, zinc and iron.

How does Biofortification differ from food fortification?

• Biofortification has the increased nutritional micronutrient content imbedded in the crop being grown. Food fortification increases the nutritional value of foods by adding trace amounts of micronutrients to foods during processing.

Source: DTE

5. Is right to establish minority institution contingent on State recognition: SC to govt

Subject: Polity

Section: Constitution

Context:

• Chief Justice of India D.Y. Chandrachud, heading a seven­judge Bench, asked whether a minority community’s right to establish an educational institution or university be dependent on State recognition.

Minority Educational Institution(MEI):

• The minority educational institution is one that has been set up by either a linguistic or the religious minority group.

More About News:

• Minority institutions have the fundamental right under Article 30 of the Constitution to establish and administer their educational institutions according to their choice. However, they cannot ignore the regulations recommended by the state.
• Article 29 and 30 of Indian Constitution contain provisions securing rights of minorities and minority-run institutions.
• The Art 30 cannot be viewed in the isolation and also needs to be read with Art 26(a) which states that religious denominations can establish institutions for the religious and also the charitable purposes as determined by SC in TMA Pai Foundation Case.
• Under the Art 30(1) (a), MEI enjoy the right to education as a Fundamental Right. But, in case the property is taken over by the state, due compensation to be provided to establish institutions elsewhere.

6. How physicists are making sense of the mystery of pulsar glitches

Subject: S&T

Section: Space tech

Context:

• In 1969, two research groups reported an abrupt and brief increase in the rotation rate of a pulsar; this glitch remains to be explained 44 years on; to date, physicists have spotted more than 3,000 pulsars and around 700 such glitches, and are starting to get a sense of why they happen.

About Pulsars:

• Pulsars are rapidly rotating neutron stars emitting intense beams of radiation.
• Formed from collapsed star cores, their periodic signals, resembling lighthouse beams, result from charged particles’ acceleration along magnetic fields.
• Pulsars offer unique insights into stellar remnants and extreme physical conditions.
• Discovery (1967): Found during radio wave study at the University of Cambridge, pulsars are rotating neutron stars emitting periodic radio signals.
• Origins: Linked to the 1932 discovery of the neutron, pulsars result from the collapse of heavy star cores into super-dense neutron stars.

Pulsar Glitches

• Definition: Pulsar glitches are unexpected jumps in a pulsar’s rotation, thought caused by its superfluid core briefly coupling with the crust, releasing a hidden burst of energy. These fleeting “hiccups” help us peek inside these dense stars.
• Rotation Mechanism: Pulsar rotation slows over time, releasing energy that accelerates charges, producing radio signals.
• Post-Glitch Relaxation: Slow relaxation post-glitch indicates a superfluid state inside neutron stars, where vortices sticking to nuclei cause glitches.

7. Former Bihar Chief Minister Karpoori Thakur to be awarded Bharat Ratna posthumously

Subject :Polity

Section: Msc

Context:

• President Droupadi Murmu has conferred the Bharat Ratna posthumously to two-time Bihar chief minister and socialist icon Karpoori Thakur

More on news:

• The announcement to honor Karpoori Thakur with India’s highest civilian award comes a day before his 100th birth anniversary.

About Karpoori Thakur:

• Thakur served as the chief minister of Bihar from December 1970 to June 1971 and from December 1977 to April 1979.
• Thakur belonged to the Nai (barber) community that is listed as an Extremely Backward Class (EBC) among the Other Backward Classes (OBCs) in the state and was from Pitaunjhia (now known as Karpoori Gram)  a Rajput-dominated village in the Samastipur district.
• He is often remembered as the “voice of the oppressed and the downtrodden”.
• Also called ‘jannayak’, he is widely considered as the pioneer of OBC and EBC reservations in the country.

About his political career:

• He made his debut as a legislator when he won the 1952 elections and remained one till his last Assembly election in 1985.
• Thereafter he  faced an electoral loss when he contested from Samastipur in the 1984 Lok Sabha polls, in the wake of Indira Gandhi’s assassination.
• After 1980, Karpoori was dubbed an EBC leader, a tag that he was not able to shed till the end of his life.
• His reservation policy drew a lot of criticism from the public.
• In 1988, 42 upper caste people were killed by Naxalites in the Dalelchak Bhagoda village and Thakur

About layered reservation regime:

• As the CM in 1978, he implemented a layered reservation regime.
• The quota system which is an unparalleled one at that time provided a 26% reservation model in which
  • OBCs got 12%, 
  • EBCs from among OBCs got 8%, 
  • women got 3%, and 
  • economically backward classes (EBWs) from among the upper castes got 3%.

About Bharat Ratna:

• The Bharat Ratna  is the highest civilian award of the Republic of India.
• Instituted on 2 January 1954, the award is conferred in recognition of “exceptional service/performance of the highest order”, without distinction of race, occupation, position, or sex.
• The award was originally limited to achievements in the arts, literature, science, and public services, but the government expanded the criteria to include “any field of human endeavor” in December 2011.
• The recommendations for Bharat Ratna are made by the Prime Minister himself to the President.
•  No formal recommendations for this are necessary.
• The number of annual awards is restricted to a maximum of three in a particular year. 
• The recipients receive a Sanad (certificate) signed by the President and a peepal leaf-shaped medallion.
• There is no monetary grant associated with the award.
• Bharat Ratna recipients rank seventh in the Indian order of precedence.
• Till now, the award has been bestowed upon 49 individuals, including 15 who were awarded posthumously. 
• The original statutes did not provide for posthumous awards but were amended in January 1955 to permit them.
• There is no formal provision that recipients of the Bharat Ratna should be Indian citizens.
•  It has been awarded to a naturalized Indian citizen i.e. Mother Teresa in 1980  and to two non-Indians i.e. Abdul Ghaffar Khan of Pakistan in 1987 and the former South African president Nelson Mandela in 1990

• The Padma Awards are announced annually on the eve of Republic Day (26th January).
• Instituted in the year 1954, it is one of the highest civilian honours of India.
• The Award seeks to recognize achievements in all fields of activities or disciplines where an element of public service is involved.
• The Awards are given in three categories:

1. Padma Vibhushan (for exceptional and distinguished service),
2. Padma Bhushan (distinguished service of higher-order) and
3. Padma Shri (distinguished service).

• The Awards are given in various disciplines/ fields of activities, viz.- art, social work, public affairs, science and engineering, trade and industry, medicine, literature and education, sports, civil service, etc.
• The Awards are conferred on the recommendations made by the Padma Awards Committee, which is constituted by the Prime Minister every year.
• The awards are presented by the President of India usually in the month of March/April every year.
• The award does not amount to a title and cannot be used as a suffix or prefix to the awardees’ name.
• The total number of awards to be given in a year (excluding posthumous awards and to NRI/foreigners/OCIs) should not be more than 120.

8. Direct tax-GDP ratio rose to 15-year high in FY23, tax buoyancy dipped

Subject :Economy

Section: Fiscal Policy

Context:

• Direct tax-to-GDP ratio, which reflects the share of taxes in the overall output generated in the country, rose to a 15-year high of 6.11 per cent in the financial year 2022-23.

More on news:

• The data was  released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance.
• As per CBDT, a taxpayer is a person who either has filed a return of income for the relevant assessment year (AY) or in whose case tax has been deducted at source in the relevant financial year but the taxpayer has not filed the return of income.

Key findings by the ministry

• Tax Buoyancy:
  • The tax buoyancy i.e. the growth rate of taxes in relation to the economy’s nominal growth rate  declined to 1.18 in 2022-23 from 2.52 in 2021-22 and 1.29 in the pre-Covid year of 2018-19.
  • Tax buoyancy had improved to 2.52 in 2021-22 due to a low base effect.
  • Tax buoyancy inched lower to 1.18 in 2022-23 even as the growth rate for taxes was recorded at 17.79 per cent in 2022-23, higher than 15.11 per cent nominal GDP growth.
• Tax collections:
  • Net direct tax collections  “increased by 160.52 per cent to Rs 16.63 lakh crore in FY 2022-23 from Rs 6.39 lakh crore in FY 2013-14”.
  • Gross direct tax collections stood at Rs 19.7 lakh crore in FY 2022-23 which is  a rise of 173.3 per cent from Rs 7.21 lakh crore in FY 2013-14.
  • On a year-on-year basis, net direct tax collections increased by 17.8 per cent, while gross direct tax collections rose by 20.5 per cent.
• Number of Taxpayers:
  • While the number of persons filing income tax returns increased to 7.4 crore in the financial year 2022-23(6.3 percent rise from FY22), out of which 6.97 crore were individuals.
  • In the previous financial year 2021-22, while tax return filers stood at 6.96 crore (with 6.55 crore individuals), overall taxpayers stood at 9.37 crore — a gap of 2.41 crore — showing that a significant number of taxpayers are getting taxed through measures such as TDS but are not filing income tax returns.
• State Wise tax collections:
  • Among states and union territories, Maharashtra accounted for 36.4 per cent (Rs 6.05 lakh crore) of the overall direct tax collections in the country in the financial year 2022-23, followed by Delhi at 13.3 per cent (Rs 2.22 lakh crore), Karnataka at 12.5 per cent (Rs 2.08 lakh crore) and Tamil Nadu at 6.4 per cent (Rs 1.07 lakh crore).
  • These four states accounted for 68.6 per cent of the overall direct tax collections in FY23.
• Cost of tax collection:
• The cost of tax collection which  indicates the expenditure on tax collection as a proportion of the total tax collections has inched lower to 0.51 percent in FY23 (the lowest level since 2000-01), but it increased in absolute terms to Rs 8,452 crore which is the highest level since 2000-01.

9. Indian bourses now fourth-largest with combined stock value of $4.33 trillion

Subject :Economy

Section: Capital Market

Context:

• The Indian stock market surpassed Hong Kong to become the fourth largest equity market for the first time even as domestic indices fell 1.5 per cent on Tuesday.

More on news:

• According to a Bloomberg report, the combined value of listed shares on Indian exchanges stood at $4.33 trillion on Monday compared to $4.29 trillion for Hong Kong.
• The US, China and Japan are the top stock markets in the world. 
• BSE’s market capitalisation was Rs 366 lakh crore on Tuesday.
• It is a testament to the nation’s economic fortitude and signals a promising trajectory for investors navigating the diverse and vibrant landscape of the Indian stock market

Fall of HongKong:

• Hong Kong’s fall was mainly due to an eroding China appeal.
• It lost nearly 36 per cent from the peak level. 
• A significant trend in global economic growth now is the underperformance of China and the outperformance of India, according to analysts.
• As the Chinese stocks listed in Hong Kong have crashed, the Hang Seng index is near a 19-year low.

Various other Benchmark indexes:

• Japan’s Nikkei
• South Korea’s Kospi

About Indian stocks:

• Indian stock markets rallied by 20 per cent in 2023 amid higher foreign inflows and growth prospects.
• This momentous milestone underscores the resilience and dynamism of India’s economic landscape.
• As the nation forges ahead, investor confidence and opportunities converge, propelling the stock market to new heights.

India’s Benchmark indexes:

• India’s benchmark indices BSE Sensex and Nifty50 ended Tuesday’s session in red with 1.47 per cent and 1.54 percent loss at 70,370.55 and 21,238.80 marks respectively.
• The Rupee weakens 9 paise to close at 83.16 against the dollar. The Indian currency had closed at 83.06 against the American currency last week.

About BSE:

• BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange.
• It is located on Dalal Street in Mumbai. 
• It was established in 1875 by cotton merchant Premchand Roychand.
• It is the oldest stock exchange in Asia, and also the tenth oldest in the world.
• The BSE is the world’s 8th largest stock exchange.

About NSE:

• National Stock Exchange of India Limited is one of the leading stock exchanges in India.
• It is based in Mumbai. 
• The National Stock Exchange of India Limited (NSE) is India’s largest financial market.
• It was incorporated in 1992.
• The NSE has developed into a sophisticated, electronic market, which ranked fourth in the world by equity trading volume.
• NSE is under the ownership of various financial institutions such as banks and insurance companies.
• EMERGE Platform: 
  • EMERGE is a credible , efficient market place aimed at the convergence of investors and emerging corporates in the country.
  • It offers opportunities to informed investors to invest in emerging businesses with exciting growth plans
  • It helps SMEs and startups to connect with investors for funding.

About NIfty 50

• The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.
• Nifty 50 is owned and managed by NSE Indices, which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.

10. Income Inequality Trends in India

Subject :Economy

Section: Unemployment and Inflation

The report from the State Bank of India (SBI) suggests a significant fall in income inequality in India over the last decade, as measured by the Gini coefficient.

The Gini coefficient dropped from 0.472 in 2014-15 to 0.402 in 2022-23, indicating a substantial reduction in inequality.

However, there are nuances to this analysis, especially considering it relies on taxpayer data, and nearly 80% of income earners, earning less than ₹2.5 lakh per annum, fall outside the tax net.

A more detailed analysis using data from the 2017-18 and 2022-23 rounds of the Periodic Labour Force Survey (PLFS) reveals some important trends:

1. Gini Coefficient Changes:
   • The Gini coefficient declined from 0.4297 in 2017-18 to 0.4197 in 2022-23.
   • For different forms of employment, the Gini coefficient fell for regular wage and casual wage workers but rose for self-employed workers, although the changes were minimal.
   • The Gini for self-employed workers increased by 1.5%, while regular and casual wage workers experienced falls of 1.7% and 4.8%, respectively.
2. Polarization of Incomes:
   • While the Gini coefficient suggests an overall reduction in inequality, there is evidence of income polarization.
   • Incomes of the top 10% grew faster than the bottom 30%, particularly among self-employed workers.
   • The top decile’s average income grew at an annual rate of around 7.23%, while the bottom decile saw the slowest income growth at only around 1.67%.
3. Changes in 90/10 Ratio:
   • The 90/10 ratio, which measures the ratio of incomes of the top 10% to the bottom 10%, increased from 6.7 in 2017-18 to 6.9 in 2022-23.
   • The 90/10 ratio fell for wage earners but increased significantly for self-employed individuals.
4. Polarization Among Different Forms of Work:
   • Polarization of incomes is seen prominently among self-employed workers, with the income of the top 10% being 8.3 times that of the bottom 10% in 2022-23, a significant increase from 2017-18.
5. Explanatory Factors:
   • The rise in women’s labor force participation, often in low-paid, part-time self-employed work, may contribute to the increase in income gaps among self-employed individuals.
   • While taxpayer data may not reflect this polarization as the bottom 10% do not earn enough to be included in the tax net, it remains to be seen how future economic growth impacts this divergence.

In summary, the reduction in the Gini coefficient hides a process of income polarization, particularly among self-employed workers, indicating the need for a nuanced understanding of income distribution trends in India.

About Periodic Labour Force Survey (PLFS):

1. Objective:
   • To estimate key employment and unemployment indicators (WPR, LFPR, UR) in a short time interval (three months) for urban areas in the ‘Current Weekly Status’ (CWS).
   • To estimate employment and unemployment indicators in both ‘Usual Status’ and CWS annually for both rural and urban areas.
2. Initiation:
   • Conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
   • Launched in April 2017.
3. Significance:
   • Aims to measure the employment and unemployment situation in India.

The Periodic Labour Force Survey provides crucial insights into India’s employment landscape, helping policymakers make informed decisions based on key indicators.

Key Terms in Labour Force Survey:

1. Labour Force Participation Rate (LFPR):
   • Percentage of the working-age population (15 years and above) either employed or unemployed but actively seeking employment.
2. Worker Population Ratio (WPR):
   • Percentage of employed persons in the population.
3. Unemployment Rate (UR):
   • Percentage of unemployed persons among those in the labour force.
4. Activity Status:
   • Determines a person’s status based on activities pursued during a specified reference period.
5. Types of Activity Status:
   • Principal Activity Status (PS):
     • Criteria: Long time spent on a specific activity during the last 365 days.
   • Subsidiary Economic Activity Status (SS):
     • Criteria: In addition to the principal status, performing economic activity for 30 days or more in the last 365 days.

6. Current Weekly Status (CWS):
   • Activity status determined based on the last 7 days preceding the survey date.

Lorenz Curve and Gini Coefficient:

1. Lorenz Curve:
   • Graphical representation of wealth distribution.
   • Developed by Max Lorenz in 1906.
   • Illustrates the proportion of income earned by a given percentage of the population.
   • 45º angle represents perfect income equality, deviation indicates actual distribution.
2. Gini Coefficient:
   • Derived from Lorenz Curve, serves as an economic development indicator.
   • Measures income equality in a population.
   • Scale: 0 (perfect equality) to 1 (perfect inequality).
   • Interpretation: Zero signifies equal income for all, while one implies a single individual receiving all income.

90/10 Ratio:

1. Definition:

• The 90/10 ratio is a measure of income inequality that calculates the ratio of the income received by the top 10% of the population to that received by the bottom 10%.

2. Interpretation:
   • A rising 90/10 ratio indicates a widening income gap between the wealthiest and the poorest segments of the population.
3. Significance:
   • It provides insights into the distribution of income, especially focusing on the extremes – the highest and lowest earners.
4. Analysis:
   • Economists use the 90/10 ratio to study trends in income inequality over time, helping to understand socio-economic dynamics.
   • Governments and policymakers consider the 90/10 ratio when formulating policies to address economic disparities and promote more inclusive growth.
   • Comparing the 90/10 ratio across different regions or countries offers a comparative analysis of income distribution patterns.
   • Changes in the 90/10 ratio can reflect the effectiveness of social and economic policies in creating a fairer distribution of wealth.

Government’s Employment Initiatives:

1. SMILE (Support for Marginalized Individuals for Livelihood and Enterprise):
   • Aims to provide support and opportunities for marginalized individuals in livelihood and entrepreneurship.
2. PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi):
   • Government initiative focusing on skill development and empowerment.
3. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act):
   • Provides rural employment and livelihood opportunities, ensuring at least 100 days of wage employment.
4. PMKVY (Pradhan Mantri Kaushal Vikas Yojana):
   • Aims to enhance the employability of youth through skill development.
5. Start-Up India Scheme:
   • Encourages and supports startups, fostering entrepreneurship and job creation.
6. Rozgar Mela:
   • Job fairs facilitating direct interaction between employers and job seekers.

Types of Unemployment:

1. Disguised Unemployment:
   • More people employed than needed, often found in agricultural and unorganized sectors.
2. Seasonal Unemployment:
   • Occurs during specific seasons, affecting jobs like agricultural labor that are not year-round.
3. Structural Unemployment:
   • Arises from a mismatch between available jobs and workers’ skills.
4. Cyclical Unemployment:
   • Linked to economic cycles, rising during recessions and declining in growth periods.
5. Technological Unemployment:
   • Job losses due to technological changes, impacting India significantly with automation.
6. Frictional Unemployment:
   • Involves a time lag during job search or switching, often voluntary and not due to shortages.
7. Vulnerable Employment:
   • Informal, contract-less work without legal protection, often leading to unrecorded employment.