R2R NEWSPAPER NOTES

Fresh SSB batches starting 19th July. Referred articles were published in The Hindu.

1. Indian Inequality and The World Bank's Claims

• World Bank Report Findings (April 2023):
  • Claimed extreme poverty in India had almost been eradicated, with consumption inequality based on household consumption surveys being "exceptionally low" in 2011-12.
  • This claim aligns with the official Household Consumption Expenditure Survey (HCES) data 2017-18 and 2022-23.
• Critique of World Bank Claims:
  • The Indian inequality debate is complex, with data from official sources often "mischaracterized" to serve pre-determined narratives.
  • A significant drop in India's international ranking for consumption inequality is questioned, as it implies a reduction in inequality.
  • The HCES data itself is considered problematic due to the use of a modified mixed reference period (MMRP) method, which may overstate consumption.
  • The World Bank has praised the MMRP method, despite concerns it over-reports consumption by 5-10% compared to the Uniform Reference Period (URP).
  • The World Bank's claim that India is "exceptionally low" in inequality is challenged, as similar surveys from other countries show much lower inequality.
  • Professor Himanshu argues that the HCES data is not comparable across countries due to the MMRP method.
• Evidence of Rising Inequality (HCES data 2022-23):
  • Consumption Share: The consumption share of the bottom 20% decreased from 9% to 8%, while the top 10% increased from 58% to 62.7%.
  • Top 1% Income Share: The share of the top 1% income increased from 13.9% in 2017 to 15% in 2022.
  • Wealth Distribution: The top 10% now account for 58% of the national income, a significant increase from 47.7% in 2012.
  • Rural-Urban Disparities:
    • Rural income for the bottom 20% has increased only 0.2 percentage points, while urban income for the bottom 20% has decreased by 0.3 percentage points.
    • Food consumption in rural areas has decreased by 4%, while in urban areas it has increased by 2%.
    • Calorie intake per capita has declined.
• The World Bank and IMF's Role:
  • The report is seen as an attempt to influence policy in India by highlighting positive outcomes in poverty reduction and inequality.
  • This may also be an attempt to promote market-friendly reforms by depicting India as a success story.
• Looking Ahead:
  • India has come a long way in ensuring health, education, and economic growth for all.
  • It's important to address the ongoing challenges of poverty and inequality.

• Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDDKY):
  • Objective: To address disparities in agricultural productivity between states and districts, and reduce "pradhaan mantri kisan samman nidhi" (PM-KISAN) and the PM Fasal Bima Yojana (PMFBY).
  • Implementation: To be implemented by 36 existing schemes across 11 departments.
  • Structure: A hub-and-spoke model with District Dhan Dhaanya Samitis at the core.
  • Private Sector Partnership: Local partner-ships with the private sector will be promoted.
  • Timeline: The scheme is for six years, starting in October (during the Rabi crop season).
  • Budget: An annual outlay of ₹24,000 crore.
  • Impact: Aims to result in higher productivity, value addition in agriculture and allied sectors, local livelihood creation, and increased domestic production and self-reliance.
• Public Spending on Agriculture:
  • Decline: Parliamentary Standing Committee on Agriculture observed a continuous decline in allocations for agriculture as a percentage of total Central Plan outlay:
    • 3.53% in 2021-22
    • 3.14% in 2022-23
    • 2.57% in 2023-24
    • 2.54% in 2024-25
    • 2.51% in 2025-26
  • Need for Public Spending: This aggregation of all schemes under one umbrella suggests that the government wants uniformity in running the welfare, financial, and technical schemes in the agriculture sector.
  • Role of States: States need to be more effective in implementing the new scheme.
• Challenges and Recommendations:
  • Private Public Partnerships: Should be for larger good of self-reliance, particularly in pulses, oil, and food grains.
  • Diversification: The scheme promotes national uniformity, but also aligns with the National Goals of Crop Diversification, Conservation of Water and Soil Health, and Self-Sufficiency in Agriculture and Allied Sectors.
  • Monitoring: The Centre will monitor 117 key indicators of progress on a monthly basis.
  • Participatory Approach: Local self-governments, primary agricultural cooperative societies, agriculture universities, and organizations of farmers and traders must be involved.

• INS Nistar Commissioning:
  • Event: Commissioned into the Indian Navy on Friday in Visakhapatnam, in the presence of Union Minister of State for Defence Sanjay Seth.
  • Significance: First indigenously designed and constructed diving support vessel.
  • "Aatmanirbhar Bharat" Initiative: The commissioning of INS Nistar reinforces India's commitment to self-reliance in defence manufacturing.
  • Indigenous Shipbuilding: One of the pillars of the government's "Aatmanirbhar Bharat" campaign.
• Vessel Specifications and Capabilities:
  • Length: 118-meter ship.
  • Type: One of two diving support vessels built by Hindustan Shipyard Ltd.
  • Primary Role: To undertake complex deep sea saturation diving and rescue operations.
  • Equipment: State-of-the-art diving equipment, remote-operated vehicles, self-propelled hyperbaric life boat, and diving compression chambers.
  • Operating Depth: Can undertake diving and salvage operations up to 300 meters depth.
  • "Mother Ship" Function: Serves as a "Mother Ship" for deep submergence rescue vessel to rescue and evacuate personnel from a sub in distress.
• Strategic Importance:
  • Naval Support: Provides critical submarine rescue support to the Indian Navy and regional partners.
  • Regional Security: Reinforces the Indian Navy's role as the "first responder" and "preferred security partner" in the region.

NEWS IN SHORTS