Daily Prelims Notes 28 March 2022
- March 28, 2022
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
28 March 2022
Table Of Contents
- Rubber cultivation in India
- BSP chief Mayawati says will not accept the post of President
- Cobots rising
- The move to ease voting for overseas citizens
- India’s GDP composition
- National Clearing Ltd
- Currency in circulation
- Foreign Asset Investigation Unit (FAIU)
- TB vax: Serum Institute seeks emergency-use authorization
- Government Initiatives on ISRO
Section: Economic Geography
Context: A plan by the Rubber Board to develop rubber plantations in an area of two lakh hectares across the seven northeastern States in a span of five years starting from 2021-22 has unleashed pent-up demand among the rubber nurseries in the State
- Many plant species produce natural rubber. Considerations of quality and economics, however, limit the source of natural rubber to one species, namely Hevea brasiliensis.
- It is a native of the Amazon basin and introduced from there to countries in the tropical belts of Asia and Africa during late 19th century. It can be termed as the most far reaching and successful of introductions in plant history resulting in plantations over 9.3 million hectares, 95 per cent of it across the globe in Asia.
- Hevea brasiliensis, also known as the Para rubber tree after the Brazilian port of Para, is a quick growing, fairly sturdy, perennial tree of a height of 25 to 30 metres. It has a straight trunk and thick, somewhat soft, light brownish grey bark.
- The rubber tree may live for a hundred years or even more. But its economic life period in plantations, on general considerations is, only around 32 years – 7 years of immature phase and 25 years of productive phase.
- Commercial cultivation of rubber in India was started in 1902.
Rubber Growing Regions
The rubber growing regions in India can be classified under two major zones, traditional and non- traditional on the basis of agro-climatic conditions.
Rubber cultivation in India has been traditionally confined to the hinterlands of the southwest coast, mainly in Kanyakumari District of Tamil Nadu and Kerala
These are hinterlands of coastal Karnataka, Goa, Konkan Region of Maharashtra, hinterlands of coastal Andhra Pradesh and Orissa, the northeastern states, Andaman and Nicobar Islands etc, where rubber is now being grown.
- Rubber is a tropical tree.
- It requires high temperature throughout the year – ranging between 20°-35°C or average monthly mean of 27°C.
- Less than 20°C temperature is detrimental.
- Rubber also requires heavy rainfall.
- The annual average rainfall of not less than 200 cm is optimum. Rubber tree thrives well when the distribution of rainfall is uniformly high all over the year.
- Deep, friable, well-drained soils are ideal as they promote root development, and acidic soils are also suitable.
- Thailand is the highest rubber producer in the world, which produced 31.29 per cent of world production. Indonesia is the second largest producer.
- In the world production of natural rubber, India ranks Fourth.
- Traditional rubber-growing states comprising Kerala and Tamil Nadu account for 81% of production.
Context: Recently BSP chief Mayawati said that she will not accept the post of President as it will end her party.
Under the Constitution of India, there shall always be a President of India ( Article 52 of the Constitution). He holds the highest elective office in the country and is elected in accordance with the provisions of the Constitution and the Presidential and vice-Presidential Elections Act, 1952. The said Act is supplemented by the provisions of the Presidential and Vice-Presidential Elections Rules, 1974, and the said Act under Rules form a complete Code regulating all aspects of conduct of elections to the Office of the President.
The President holds office for a period of five years from the date on which he enters upon his office and, accordingly, an election is held to elect the new President before the expiration of the term of the incumbent President of India.
Who elects the President of India?
The President is elected by an Electoral College, which consists of the elected members of both Houses of Parliament and the elected members of the Legislative Assemblies of all the States and also of NCT of Delhi and the Union Territory of Puducherry. [Article 54 of the Constitution of India]
What is the term of the office of the President?
The President shall hold office for a term of 5 years from the date on which he enters upon his office. He shall, however, continue to hold office notwithstanding the expiry of his term, until his successor enters upon his office. [Article 56 of the Constitution of India]
When is the election of the Office of President of India held?
Under the provisions of sub-section (3) of Section 4 of the Presidential and Vice-Presidential Elections Act, 1952, the notification calling the election to the office of the President can be issued by the Election Commission on any day within the period of sixty days before the expiry of the term of office of the outgoing President. The election schedule shall be so fixed, that the President-elect is able to enter upon his office on the day following the expiry of the term of the outgoing President.
Who conducts the election to the Office of President of India?
Under Article 324 of the Constitution of India, the authority to conduct elections to the Office of President is vested in the Election Commission of India.
What electoral system/process is followed for the election to the office of the President?
As per Article 55(3) of the Constitution of India, the election of the President shall be held in accordance with the system of proportional representation by means of single transferable vote and the voting at such election shall be by secret ballot.
What are the Qualifications required by a candidate to contest the election to the Office of the President of India?
Under Article 58, a candidate should fulfil the following eligibility conditions to contest the election to the Office of President: –
- Must be a citizen of India,
- Must have completed 35 years of age,
- Must be eligible to be a member of the Lok Sabha,
- Should not be holding any office of profit under the Government of India or the Government of any State or under any local or other authority subject to the control of any of the said Governments.
However, the candidate may be holding the office of President or Vice-President or Governor of any State or Ministers of the Union or any State and shall be eligible to contest election.
Subject: Science and Tech
Context: Robots that work hand-in-hand with humans are set to transform businesses big and small alike in the near future
What are Cobots?
- A cobot is intended to work hand-in-hand with humans in a shared workspace.
- This is in contrast with full-fledged robots that are designed to operate autonomously or with limited guidance. They support and relieve the human operator of his excess work.
- In an auto factory, while the cobot tightens the bolts, the human worker places the tools in front of the cobot. In a biscuit factory, the cobot would package the biscuits while the worker segregates burnt ones not fit for consumption. In a small-scale industry, the cobot is placed on the drilling job while the worker performs a quality check.
- Cobots are easy to use
- Safe – Cobots can be stopped by people with one arm.
- Flexible and can be used just as a tool
- Bolstering productivity
- Easy to program with software and apps -one could programme a cobot in 40 minute
- Cobots are creating jobs and making small businesses competitive
- Can perform repetitive or dangerous jobs
- Remote assistant for a shop floor operator
- Assembly and quality assurance
- Material handling
- Healthcare: Cobots are getting into healthcare. They work as chefs in the U.S., making burger patties.
- Construction: In Singapore, cobots have been used to make building tiles.
- Painting: Cobots can be also used to paint the sides of the buildings
- They often operate at a slower speed than standard automation.
- Many cobots have limited payload capacity and reach, though a few models are available that address those areas.
- Cobots for some dangerous applications may require additional safety infrastructure such as caging or area scanners.
Context: On March 25, Union Minister for Law and Justice Kiren Rijiju in response to a question in the Lok Sabha stated that the government was exploring the possibility of allowing online voting for non-resident Indians (NRI).
- Part III of the Representation of the People Act addresses this to some extent by qualifying “a person absenting himself temporarily from his place of ordinary residence shall not by reason thereof cease to be ordinarily resident therein” and in essence provides for NRIs who are temporarily staying abroad to be eligible to vote in their local constituencies.
- Yet, the proviso of having to visit the polling booth in person has discouraged eligible voters from exercising their mandate.
- In the winter session of Parliament in2017, the government proposed to remove the restriction imposed by Section 20A of the Representation of the People Act, which required them to be physically present to vote in their constituencies.
- The Bill provided for overseas voters to be able to appoint a proxy to cast their votes on their behalf, subject to conditions laid down in the Conduct of Election Rules, 1961. The Bill was later passed in 2018, but lapsed with the dissolution of the 16th Lok Sabha.
- The ECI then approached the government to permit NRIs to vote via postal ballots similar to a system that is already used by service voters, (a member of the armed Forces of the Union; or a member of a force to which provisions of the Army Act, 1950 (46 of 1950) which is the Electronically Transmitted Postal Ballot System or ETPBS.
Present status of Overseas voters right to vote in Indian elections
- Prior to 2010, an Indian citizen who is an eligible voter and was residing abroad for more than six months, would not have been able to vote in elections. This was because the NRI’s name was deleted from electoral rolls if he or she stayed outside the country for more than six months at a stretch.
- After the passing of the Representation of the People (Amendment) Act, 2010, eligible NRIs who had stayed abroad beyond six months have been able to vote, but only in person at the polling station where they have been enrolled as an overseas elector. Just as any resident Indian citizen above the age of 18 years) is eligible to vote in the constituency where she/he is a resident, overseas Indian citizens are also eligible to do so. In the case of overseas voters, their address mentioned in the passport is taken as the place of ordinary residence and chosen as the constituency for the overseas voter to enroll in.
How has the existing facility worked so far?
- From merely 11,846 overseas voters who registered in 2014, the number went up to close to a lakh in 2019. But the bulk of these voters (nearly 90%) belonged to just one State — Kerala. Of the 25,606 such voters who actually turned up, 25,534 were from Kerala (mostly from Kozhikode and Malappuram districts).
- Clearly, a very low proportion of eligible overseas residents actually registered or turned up to vote. The Representation of the People Act, envisaged voters as only the “ordinary residents” in a constituency who will choose representatives to represent their local interests while mediating on larger issues in the legislature.
What is ETPBS and how does it function?
- The Conduct of Election Rules, 1961 was amended in 2016 to allow service voters to use the ETPBS. Under this system, postal ballots are sent electronically to registered service voters. The service voter can then download the ETPB (along with a declaration form and covers), register their mandate on the ballot and send it to the returning officer of the constituency via ordinary mail. The post will include an attested declaration form (after being signed by the voter in the presence of an appointed senior officer who will attest it). The postal ballot must reach the returning officer by 8 a.m. on the day of the counting of results. The ECI proposed to extend this facility to overseas voters as well.
Procedure in case of NRI voters
- For this to commence, the Law Ministry has to amend the Conduct of Election Rules, 1961.
- In the case of NRI voters, those seeking to vote through ETPBS will have to inform the returning officer at least five days after notification of the election. The returning officer will then send the ballot electronically via the ETPBS.
- The NRI voter can then register her/his mandate on the ballot printout and send it back with an attested declaration in a process similar to the service voter. Except in this case, the senior officer would be appointed by the Indian diplomatic or consular representative in the resident country of the NRI.
- The ECI has not specified whether the voter should send in the ballot through ordinary post to the returning officer or drop it off at the Indian consular office/embassy, which will then send the envelopes constituency-wise to the returning officers.
Are postal ballots a viable means of voting?
- The ETPBS method allowed for greater turnout among service voters in the 2019 Lok Sabha election.
- With increasing mobility of citizens across countries for reasons related to work, the postal ballot method has been recognised by the International Institute for Democracy and Electoral Assistance (an intergovernmental organisation that works to support democratic processes and institutions) as a means to allow overseas voters to exercise their right, subject to certain conditions normally related to the time spent abroad or the work carried out abroad.
- A postal ballot mechanism that allows for proper authentication of the ballot at designated consular/embassy offices and an effective postal system should ease this process for NRIs, but rules must be clearly framed for eligibility on the basis of time spent away from the country.
Section: National Income
The Indian economy can grow consistently at 8 per cent for the next 20 years leading to the generation of up to 1.5 crore new jobs and bringing out 3.5 crore people out of poverty every year on the basis of the capital investment strategy of the government.
Share of sectors in nominal GVA(%)
Demand side trends
(Those components affecting the aggregate demand side of the economy i.e. total consumption including private and government consumption, total investment, net export i.e. export minus import)
Share of Sectors in Nominal GDP (per cent)
There have been full recoveries of all components on the demand side in 2021-22 except for private consumption
- Total Consumption– It is expected to grow by 7.0 % in 2021-22 with government consumption biggest contributor, surpassing the pre pandemic projected to grow at 7.6%.
- Gross Fixed Capital Formation– it is expected to grow at 15% in 2021-22, with investment to GDP ratio 29.6% (highest in seven years)
- Crowd in effect of government’s capex in infrastructure (rise in infrastructural growth will create a favourable conditions for rise in business optimism by increasing stock of social overhead capital and ease of doing business, thus it will lead to increase in private investment)
- Rise in companies profit and stock market
- Decline in Non Performing Assets of banks and rise in Capital Adequacy Ratio
- Net export– India’s total export is projected to grow at 16.5% and import grow at 29.4% in 2021-22 (both higher than pre pandemic level), though manageable current account deficit owing to:
- India’s merchandise imports jumped to a record $589 billion owing to the rising oil prices, while exports till March 21 stood at $400.8 billion. Thus, meeting the export target of 2021-22 in seven days’ advance.
- Robust increase in capital inflows sufficient to finance the modest current account deficit and led to rise in foreign exchange a record high of US$ 634 billion).This is equivalent to 13.2 months of imports and higher than the country’s external debt.
|Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.
The equation for aggregate demand adds the amount of consumer spending, private investment, government spending, and the net of exports and imports. The formula is shown as follows:
Aggregate demand over the long term equals gross domestic product (GDP) because the two metrics are calculated in the same way. GDP represents the total amount of goods and services produced in an economy while aggregate demand is the demand or desire for those goods. As a result of the same calculation methods, the aggregate demand and GDP increase or decrease together.
The decline in natural gas supply is an example of supply chain disruption and will have no impact on aggregate demand.
Gross fixed capital formation (GFCF) is the gross addition to fixed assets like machinery and equipment, intangible assets and indicates the state of investments in the economy. GFCF is a component of the expenditure on gross domestic product (GDP), and thus shows something about how much of the new value added in the economy is invested rather than consumed.
GFCF is called “gross” because the measure does not make any adjustments to deduct the consumption of fixed capital (depreciation of fixed assets) from the investment figures. For the analysis of the development of the productive capital stock, it is important to measure the value of the acquisitions less disposals of fixed assets beyond replacement for obsolescence of existing assets due to normal wear and tear.
“Net fixed investment” excludes the depreciation of existing assets from the figures for new fixed investment, and is called net fixed capital formation.
GFCF is not a measure of total investment, because only the value of net additions to fixed assets is measured, and all kinds of financial assets are excluded, as well as stocks of inventories and other operating costs (the latter included in intermediate consumption).
Real v/s Nominal GDP
The nominal GDP is the value of all the final goods and services that an economy produced during a given year. It is calculated by using the prices that are current in the year in which the output is produced. In economics, a nominal value is expressed in monetary terms.
For example, a nominal value can change due to shifts in quantity and price. The nominal GDP takes into account all of the changes that occurred for all goods and services produced during a given year. If prices change from one period to the next and the output does not change, the nominal GDP would change even though the output remained constant. It is also called GDP at current prices.
The real GDP is the total value of all of the final goods and services that an economy produces during a given year, accounting for inflation and deflation. It is calculated using the prices of a selected base year. To calculate Real GDP, you must determine how much GDP has been changed by inflation since the base year, and divide out the inflation each year. Real GDP, therefore, accounts for the fact that if prices change but output doesn’t, nominal GDP would change.
In economics, real value is not influenced by changes in price, it is only impacted by changes in quantity. Real values measure the purchasing power net of any price changes over time. The real GDP determines the purchasing power net of price changes for a given year. Real GDP accounts for inflation and deflation. It transforms the money-value measure, nominal GDP, into an index for the quantity of total output. It is also called GDP at constant price
Real GDP= Nominal GDP/Price level in base year *100
Section: Monetary Policy
A probe by market regulator SEBI into the four-hour-long trading disruption witnessed by the National Stock Exchange (NSE) on February 24, 2021, has revealed that the exchange’s critical trading infrastructure suffered a massive breakdown due to faulty design and lower than required capacity to handle the peak load.
NSE told SEBI that its service provider Hitachi had made unknown changes to its storage area network (SAN) and the exchange was unaware of its faulty ‘failover logic,’ which caused the tech glitch.
|Failover logic is an automated process of switching to a standby computer server, system, hardware component or network upon the failure or abnormal termination of the previously active system or network. It is a system critical to the market functioning.
SEBI rules say that critical trading technology should not be outsourced and even when done for the need of a specialist, its responsibility and control vests with the exchange management.
Peak load capacity
SEBI prescribes that exchanges have leased the telecom line capacity to the tune of 1.5 times their projected peak load. NSE was supposed to calculate the projected peak load for 60 days ahead based on the per second peak load of the past 180 days. All the systems involving trading, clearing, settlement were required to be considered in this process. Further, the technical components like network, hardware, software etc too were required to adequately meet such capacity requirements.
SEBI has specified that once the load exceeds 75 percent of the installed capacity, immediate measures should follow.
The National Stock Exchange was founded in 1992. It was recognized as a stock exchange by SEBI under the Securities Contracts (Regulation) Act, 1956 and the operation commenced in 1994. It was the first exchange in India to provide fully computerized electronic trading. NSE is one of the pioneers in technology and innovation which ensured the high-end performance of its systems. The exchange supports more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. NSE is the largest stock market, in terms of volume in India.
The NIFTY 50 is the flagship index on the National Stock Exchange of India Ltd. (NSE). The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. It includes 50 of the approximately 1600 companies listed on the NSE.
|Add on-The Bombay Stock Exchange was founded on July 9, 1875. It is Asia’s first stock exchange. It is also the world’s fastest exchange with a median trade speed of six microseconds.
National Clearing Ltd:
NSE is a trading platform but NCL does risk management and settlement of trades.
NSE Clearing Limited (NSE Clearing) (formerly known as National Securities Clearing Corporation Limited, NSCCL), a wholly owned subsidiary of NSE is responsible for clearing and settlement of all trades executed on NSE and deposit and collateral management and risk management functions. NSE CLEARING was the first clearing corporation to be established in India and we introduced a settlement guarantee before it became a regulatory requirement. NSE Clearing has maintained a credit rating of “AAA” from CRISIL since 2008.
Its vision is to provide robust and well-governed multi-asset class Central Counterparty (CCP) infrastructure with global presence for safe and efficient value added services through robust strong risk management systems and processes, setting global benchmarks.
- to bring and sustain confidence in clearing and settlement of securities;
- to promote and maintain, short and consistent settlement cycles;
- to provide counterparty risk guarantee, and
- to operate a tight risk containment system.
Section: Monetary Policy
Context: During the financial year so far, currency with the public has gone up by 9.7 per cent, or Rs 2.66 lakh crore, from Rs 27.51 lakh crore in March 2021.
Cash with the public has shot up 285 per cent from a low of Rs 7.82 lakh crore, recorded on December 23, 2016.
Since demonetisation in 2016, currency in circulation has risen steadily every year, with the CiC to GDP ratio having surged to 14.5 per cent in 2020-21 from 8.7 per cent in 2016-17.
Even as the government is pushing for a “less-cash society” and with digital transactions clocking steady growth, cash remains the preferred mode of payment:
- The jump in cash with the public was primarily driven by a rush for cash by the public in 2020-21 as the government announced a stringent lockdown to tackle the spread of the Covid pandemic.
- Absolute rise in currency in circulation to the GDP ratio- higher than pre demonetisation level
- During festival seasons and elections, cash demand remains high.
- A large number of merchants still depend on cash payments for end-to-end transactions.
- Moreover, 90 percent of e-commerce transactions use cash as a mode of payment in tier four cities compared to 50 per cent in tier one cities.
- government bond auctions and fiscal packages that are intended to boost economic recovery
- The decline in bank deposits is also a pandemic-induced syndrome- Due to increased uncertainty and supply side shock, investors and consumers feel safe in keeping cash with them.
- If there is too much money in circulation, both in terms of cash and credit, then the value of legal tender decreases. This leads to “too much money chasing too few goods”, causing demand-pull inflation.
- Currency depreciation
Currency in Circulation (CiC)
RBI’s definition, currency with public is arrived at after deducting cash with banks from total currency in circulation (CiC).
Currency in Circulation (CiC) refers to currency notes and coins issued by the central bank within a country that is physically used to conduct transactions between consumers and businesses. Thus, Currency in circulation comprises of:
- currency notes and coins with the public
- cash in hand with banks.
In the money supply statistics, central bank money is M0 while the commercial bank money is divided up into the M1 and M3 components. M2 and M4 components also include Post-Office deposits as well.
- Reserve Money (M0):-Reserve money is also called central bank money, monetary base, base money, or high-powered money. In the most simple language, Reserve Money is Currency in Circulation plus Deposits of Commercial Banks with RBI.
Mo = Currency in circulation + Bankers’ deposits with the RBI + ‘Other’ deposits with the RBI
- M1 (Narrow Money) =Currency with the public + Deposit money of the public (Demand deposits with the banking system + ‘Other’ deposits with the RBI).
- M2=M1 + Savings deposits with Post office savings banks.
- M3 (Broad Money) = M1+ Time deposits with the banking system
Section: Fiscal Policy
The Government’s probe team, supervised by a Multi Agency Group (MAG), has started action first on offshore trust-owning individuals and companies named in Pandora Papers.
THE INCOME Tax Department and its newly created Foreign Asset Investigation Unit (FAIU) have conducted two major search operations this month that officials said were linked to the global media leak.
Indians are required to declare any association with an offshore trust — be it as a Settlor, Trustee or Beneficiary — in the Foreign Asset (FA) declaration section of their Income Tax returns. If they fail to do so, they are liable for stiff penalties and fines under the 2015 Black Money Act.
Foreign Asset Investigation Unit
- The Foreign Asset Investigation Units (FAIUs) have been created in all the 14 investigation directorates of the tax department located in various parts of the country that are primarily tasked to undertake raids and seizures, and develop intelligence to check tax evasion done by various methods.
- It would focus on cases of undisclosed assets held abroad by Indians and black money stashed abroad. The new units will also probe cases of Indian entities named in global tax document leaks like the Panama Papers.
- The FAIUs are slated to function under the unified command of an officer in the rank of director-general of income tax. Further the pursuit of data analysis and initiating credible actions on the basis of these analyses would be the major function of the FAIUs.
- The FAIUs are under the authority of the jurisdictional director general of income tax (investigation) rank officer and its work is directly monitored by the Central Board of Direct Taxes.
Section: International organization
Context: n March 30, BIMSTEC leaders will meet at Colombo to attend the 5th BIMSTEC summit
- The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional multilateral organization.
- Its members lie in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
- Out of the 7 members, Five are from South Asia – Bangladesh, Bhutan, India, Nepal, and Sri Lanka. Two are from Southeast Asia – Myanmar, Thailand.
- BIMSTEC not only connects South and Southeast Asia, but also the ecologies of the Great Himalayas and the Bay of Bengal.
- It mainly aims to create an enabling environment for rapid economic development; accelerate social progress; and promote collaboration on matters of common interest in the region.
Genesis of BIMSTEC
- This sub-regional organization came into being in 1997 through the Bangkok Declaration.
- Initially, it was formed with four Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri-Lanka and Thailand Economic Cooperation).
- It became renamed ‘BIMST-EC’ in 1997, following the inclusion of Myanmar.
- With the admission of Nepal and Bhutan in 2004, the name of the grouping was changed to ‘Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation’ (BIMSTEC).
Subject: Science and tech
Section: COVID -19
The Serum Institute has applied to the Drugs Controller General of India, seeking emergency use authorisation for its recombinant BCG (rBCG) vaccine for the prevention of tuberculosis, said official sources on Sunday.
India’s TB immunisation programme currently offers BCG vaccination at birth or as early as possible till one year of age. SII already supplies life-saving vaccines to the government under the Universal Immunisation Programme, including Pneumococcal, IPV and Rotavirus, Singh mentioned in his letter. The Pune-based firm is one of the companies that supply BCG vaccine to the government.
Emergency use authorisation
- Vaccines and medicines, and even diagnostic tests and medical devices, require the approval of a regulatory authority before they can be administered. In India, the regulatory authority is the Central Drugs Standard Control Organisation (CDSCO).
- For vaccines and medicines, approval is granted after an assessment of their safety and effectiveness, based on data from trials. In fact, approval from the regulator is required at every stage of these trials. This is a long process, designed to ensure that a medicine or vaccine is absolutely safe and effective. The fastest approval for any vaccine until now — the mumps vaccine in the 1960s — took about four-and-a-half years after it was developed.
- In emergency situations, like the current one, regulatory authorities around the world have developed mechanisms to grant interim approvals if there is sufficient evidence to suggest a medical product is safe and effective. Final approval is granted only after completion of the trials and analysis of full data; until then, emergency use authorisation (EUA) allows the medicine or the vaccine to be used on the public.
Subject: Science and Technology
Section: Space Technology
Context: Researchers from the Centre for Development Studies (CDS) and the Indian Institute of Space Science and Technology (IIST) valued India’s ‘Space economy’ at ₹36,794 Crore for 2020-21.
- The findings outlined the annual budget for the space programme and its constituents- space manufacturing, operations and application. It found space applications accounted for the major chunk of this evolving economy, constituting 73.57% (₹27,061 crore) of it in 2020-21, followed by space operations (₹8,218.82 crore or 22.31%) and manufacturing (₹1,515.59 crore or 4.12%).
- It seems that there is a decline in the budget for space related activities leading to a reduction in the size of economy in the last two years. It shrunk from ₹43,397 crore in 2018-19 to ₹39,802 crore in 2019-20 and ₹36,794 crore in 2020-21.
- Moreover, India’s space economy has evolved considerably and now accounts, on an average, for about 0.23% of the GDP.
- But, the space budget as a percentage of the GDP slipped from 0.09% in 2000-01 to 0.05% in 2011-12, and has remained more or less at that level since then.
- India’s spending is more than that of China, Germany, Italy and Japan, but less than of the U.S. and Russia.
Govt Initiatives to improve Space Technology:
To provide a level playing field for private companies to use Indian Space Infrastructure, the Government has approved the creation of following institutions and measures which include:
- New Space India Ltd (2019)
- Spacecom Policy- 2020
- IN- SPACe – 2020
- The Indian Space Association (ISpA)
Spacecom Policy (2020):
The Government of India under the Spacecom Policy shall:
- adopt measures to monitor and authorize use of space assets for communication to or from Indian territory.
- ensure protection of space assets already put in place and adopt measures to bring in more space assets under the administrative control for enhancing ability to utilize space-based communication for national needs.
- promote increased participation of commercial Indian industry to provide space-based communications both within the country and outside.
- concentrate on realization of space-based communication systems for addressing the requirements that cannot be effectively, affordably and reliably satisfied by commercial Indian industry either because of national security concerns or economic factors.
- provide a timely and responsive regulatory environment for the commercial Indian industry to establish and operate space-based communication systems.