Poverty In India: A Progress Review

Context: Recently, the Prime Minister outlined that 13.5 crore plus people came out of poverty in 5 years.

Poverty in India

• Five official committees have so far estimated the number of people living in poverty in India. 
• Since 2021, India has abandoned the poverty line measure to opt for the Multidimensional Poverty Index. 

Poverty at the national level:

Poverty In India Estimates

Given the different ways poverty has been measured over the years, the available data is limited and conflicting. 

• For instance, while the NITI Aayog MPI said 53.7% (625 million) of Indians were poor in 2004-05, the global MPI put the figure at 55.1% (645 million). 
• According to the national and global MPIs, about 420 million and 415 million people escaped poverty between 2004-05 and 2019-21. 
• The Tendulkar Expert Group appeared to undercount the poor even more at 37.2% (408 million) in 2004-05.
• As per the Tendulkar Expert Group, between 2004-05 and 2011-12, about 138 million people were lifted from poverty.
• Arunachal Pradesh, Mizoram and Nagaland were the only states to see an increase in the poverty rate between 2004-05 and 2011-12. 
• During this period, nine states saw poverty decline by at least 20 percentage points.

How is poverty in India measured?

• India adopted the Multidimensional poverty index, with some modifications, in 2021. The national MPI is measured now by the NITI Aayog.
• After India switched to its version of the MPI, poverty data was published for 2015-16 and 2019-21 based on the NFHS data for the corresponding years. 
• In 2015-16, Bihar was again the only state with more than 50% of the population living in poverty. 
• In six states, more than a third of the population was poor. The proportion of poor people in eight states and UTs was below 5%.

Poverty In India: Post-Independence Poverty Estimation Methods: 

In 1962, the Planning Commission constituted a working group to estimate poverty nationally, and it formulated separate poverty lines for rural and urban areas – of Rs 20 and Rs 25 per capita per year, respectively.  (Refer to Table for more details.)

The Multidimensional Poverty Index (MPI)

• In 2010, the United Nations Development Programme and the Oxford Poverty and Human Development Initiative created the Multidimensional Poverty Index (MPI).
• It measures “acute deprivations in health, education, and living standards that a person faces simultaneously” in addition to income and expenditure levels.
• It includes outcome-based indicators like malnourishment, school attendance and years of schooling, and access to water, sanitation, electricity and cooking fuel.
• According to the global MPI, a person is considered poor if they are deprived of a third or more indicators.

DOWNLOAD PDF

Context:

• The Tea Board, a statutory body under the Union Ministry of Commerce, believes that producers need to reimagine exports and move from bulk to the branded packaged format.

India’s Steps for Boosting Tea Export

• Creation of Nodal Agency: A separate nodal agency is engaged specially for tea promotion.
• Schemes: Incentivising value-added exports with schemes such as cash compensatory support.
• Tapping Startups: Startups, which are selling in value-added format, could be the front-end for established players.

Top Tea Exporters of the World

Also Read: Indian Tea Industry

DOWNLOAD PDF

Context:

• Recently, the Delhi Government announced a 15-point action plan to address Delhi air pollution during the winter season.

Reasons for Delhi Air Pollution

• Burning of crop stubble: Burning of crop stubble in surrounding Punjab, Uttar Pradesh, Haryana and Rajasthan is the main reason for Delhi air pollution especially in the winter season. 
• Stagnant Wind: As the winter season sets in, dust particles and pollutants in the air become unable to move. 
  • Due to stagnant winds, these pollutants get locked in the air and affect weather conditions, resulting in smog. 
• Overpopulation:  Another reason for Delhi air pollution is overpopulation in the capital. Over-population only adds up to the various types of pollution, whether it is air pollution or noise pollution. 
• Poor Public Infrastructure:  Investing less on public infrastructure is another reason for air pollution. 
  • In India, investment in public transport —and infrastructure is low which leads to congested roads, and hence air pollution. 
•  Industrial pollution and garbage dumps are also increasing air pollution and building-up smog in the air. 
• Fire-Crackers: Despite the ban on cracker sales, firecrackers were a common sight this Diwali. 

Also read:  POLLUTION AND ITS EFFECTS ON HEALTH

What are the key features of the 15-Point Winter Action Plan to Address Delhi Air Pollution?

Here are the salient features of the 15-Point Winter Action Plan designed to tackle Delhi air pollution;

• Monitoring of Construction sites: The government has formed 591 teams to monitor construction sites, a big source of dust.
• Comprehensive Plan Involving Departments: The plan, which involves 28 departments including environment, transport, traffic police, municipal bodies, and other agencies to check pollution, has been prepared based on reports and suggestions from these departments.
• Controlling Stubble Burning: The plan announced includes several focus areas, including controlling stubble burning, vehicular pollution, open burning, and dust pollution.
  • Bio-decomposer will be utilized in the five thousand acres to curb the practice of stubble burning.
• Checking open garbage burning: It also calls for the formation of special teams to enforce some of the existing bans, such as the one on open garbage burning.
• Identification of Pollution Hotspots: The government has identified 13 high pollution level hot-spots and made special action plans for each hotspot. 
• Dust- Free Roads: In order to maintain dust-free roads, a total of 82 mechanical road sweeping machines and 530 water sprinkling machines will be deployed.
  • During the winter season, 298 smog guns will be in operation on Delhi’s roads.
•  Graded Response Action (GRAP): Strict implementation of Graded Response Action (GRAP) in Delhi, utilizing advance forecasts from the Central Government and Commission for Air Quality Management to control pollution.

• Green War Room: A Green War Room for round-the-clock monitoring, analyzing the daily actions of all agencies, and formulating plans for the next day has been established
• Eco-e-waste park: An eco-e-waste park is being built, with a consultant appointed to expedite its construction.
• Public Awareness Campaign: A plan to launch public awareness campaigns, including ‘Run Against Pollution,’ ‘Red Light On, Gaadi Off,’ to combat Delhi air pollution.
• Establishing a super site: A real-time source apportionment study in collaboration with IIT Delhi and the Delhi Pollution Control Committee, establishing a super site at Sarvodaya Bal Vidyalaya for targeted action.
• Cooperation with Neighboring states: Neighboring states to reduce Delhi air pollution by allowing CNG-based vehicles, transitioning industries to PNG, transforming brick kilns, and banning firecrackers.
• Enhancing Green Cover: Plans to plant 1 crore new saplings to increase green cover in the city.
• Industries will use non-polluting fuel.

DOWNLOAD PDF

Context:

• India has retained its 40th spot in the latest Global Innovation Index 2023 released by the World Intellectual Property Organisation (WIPO).

About Global Innovation Index: The Global Innovation Index is a leading reference for measuring an economy’s innovation ecosystem performance.

• The GII 2023 reveals the ranking of 2023, most innovative economies in the world amongst 132 economies and localizes the top 100 science and technology innovation clusters.
• It used 80 indicators to track global innovation trends
• Global Trends: 
  • Switzerland (1st place), followed by Sweden, United States, United Kingdom and Singapore are the world’s top innovative economies in 2023. 

Top ten countries In Global Innovation Index 2023

Here is the list of top ten countries listed in the Global Innovation Index 2023

• Switzerland
• Sweden
• United States of America
• United Kingdom
• Singapore
• Finland
• Netherlands
• Germany
• Denmark, and
• Republic of Korea

ALSO READ: IMPORTANT INDEXES AND REPORTS

• India’s Performance In Global Innovation Index 2023: 
  • India has been on a rising trajectory, in the Global Innovation Index (GII), from a rank of 81 in 2015 to 40 in 2023.
    • Reason for Improved Ranking: The consistent improvement in the GII ranking is owing to the immense knowledge capital, the vibrant start-up ecosystem, and the amazing work done by the public and private research organizations
  • India holds top rankings in key indicators such as:
    • Information and Communication Technology (ICT) services exports (5th place),
    • venture capital (VC) received (6th place), 
    • graduates in science and engineering (11th place) 
    • global corporate Research and Development (R&D) investors (13th place).
  • India also retained its top position in the lower-middle-income group and the Central and South Asian region.
  • The world’s five biggest science and technology clusters are all located in East Asia, including the Bengaluru, Delhi, Chennai and Mumbai cluster.

DOWNLOAD PDF

Context:

• This article is based on a news “As illicit trade booms, seizure mount: 3.5 tonnes of gold, 18 crore cigarette sticks and 90 tonnes of heroin caught in FY23” which was published in the Indian Express. Recently, FICCI CASCADE reported on illicit markets  associated with financial flows and revealed their linkages with organized crime and terrorism.

FICCI’s Report on India’s Illegal Economy

• According to FICCI, the illegal economy in India has an overall score of 6.3, which is higher than the average score of 5 of other 122 countries.
  • In the organized crime segment, India has a lower score of 4.3 against 5.2 for an average of 122 countries.
• India has a Global Terrorism Index (GTI) score of 7.43 and a Global Crime Index score of 44.7, reflecting positive developments in these areas compared to the levels observed in 2016. 
• Goods Seized: Around 3.5 tonnes of gold, 18 crore cigarette sticks, 140 metric tonnes of red sanders and 90 tonnes of heroin were seized along with other drugs during the last financial year. 
• Revenue Loss: India has faced an approximate total potential revenue loss of US $13 billion between 2009-2018, involving both mis invoiced imports and exports. 

What is an Illicit Trade?

Illicit trade refers to the illegal exchange of goods and/or services, often in violation of national or international laws. It comprises trade of manufacturing and export of counterfeit goods.

• It is vast and full of complexities, however, smuggling and counterfeiting are the most common types of illicit trade.
  • Counterfeiting is a practice of manufacturing, importing, exporting, distributing, selling or otherwise dealing in goods, often of inferior quality, under a trademark that is identical to a registered trademark, without the approval of the registered trademark owner.
    • Counterfeits are most commonly called “fake goods” or “knock-offs.”
  • Smuggling: It is a criminal offense which includes the secret movement of goods across national borders to avoid customs duties or import or export restrictions.
    • Smuggling in India report 2021-22 identified 437 instances of duty evasion totalling Rs 3,924 crore, which was a 40 percent jump from 2020-21.
  • Money laundering: It is the process of illegally concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source.
    • Based on UN Office of Drugs and Crimes (UNODC) estimates, when the Indian economy surpassed the $3 trillion mark in 2021, the quantum of money laundering in India was estimated at $159 billion which is around 5 percent of GDP.

Also read: India’s GDP Estimates

What are the linkages of Illicit Trade?

• Nexus: There is an intricate nexus between the illegal economy, terror and organized crime. The report highlights the role played by criminal networks in a number of illicit activities, including drug and human trafficking, smuggling of cigarettes, alcohol and illegal trade of wildlife products. 
• Financial Flows: Illicit financial flows drain resources from development not only when they leave a country (outflows), but also when they enter a country (inflows). 
  • They can have detrimental impact by fuelling money laundering and corruption thus undermining the rule of law and the stability of markets. 
• Organised Crime and Illegal Economy: Drug trafficking, arms smuggling, counterfeit goods, and wildlife trade are lucrative enterprises that fund criminal networks. The profits generated often support organized crime syndicates, fostering corruption and undermining security. 
  • India’s location near major drug-producing regions, including the Golden Triangle (Myanmar, Laos, and Thailand) and the Golden Crescent (Afghanistan, Pakistan, and Iran) has been associated with activities that may involve the transportation and distribution of controlled substances. 
  • FICCI report stated that 3,172 cases of drug seizures were recorded during 2014-2022
• Linkages with Terrorism: Illicit trade generates significant revenue, enabling financial backing for terrorist organizations. The porous borders facilitate the movement of illicit goods and funds.  The direct link of these activities with terrorists is a cause of concern. 
  • For example, according to the United Nations, millions of dollars from the trade of illicit tobacco reach terror outfits such as the Taliban and Al-Qaeda.

Also read: Global Peace Index

What challenges are associated with Linkages of Illicit Trade?

• Economic Impact of Violence for India: Central and state governments suffer heavy losses by way of loss of sales tax, customs and excise tax etc. Further dealing with both terrorism and crime has resulted in a considerable economic cost. 
  • In 2021, India’s economic cost for violence was at US $1170 billion at purchasing power parity (PPP) which accounts for approximately 6% of GDP. 
• Enforcement: As perpetrators of illicit trade are becoming increasingly sophisticated, well-connected and adequately funded, the activities of counterfeiting and smuggling are presenting a bigger challenge for enforcement authorities and governments globally. 
• Breeding Ground for Criminal Activities: Financial gains are further deployed for illegal activities such as drug trafficking and other organized crimes.

• • For instance, the Financial Action Task Force (FATF) study suggested that money laundering and terror funding was consequential to illicit trade in tobacco.
• Visible Consequences: Such as adverse impact on innovation, investment, brand reputation, health and wellness and national security are well-known. However, the bigger concern is the manner in which it is impacting the social fabric of nations. 
• Technology Adoption: Online marketplaces have become a preferred hub for illicit operators owing to their wider reach and ease of access. 
• Downfall of Local Industries: Illicit trade drastically cuts prices of locally manufactured goods thereby destroying the market for local products, resulting in local industries to break down. The impact of the problem is to the extent that it leads to unemployment.
• Dilution of Brand Value: Inferior products tarnish the reputation of the manufacturer and dilute the brand image over time. Manufacturers lose their trust as consumers unknowingly buy fake products.

Also read: Organisation for Economic Co-operation and Development (OECD)

Role of Government Agencies in Checking Illicit Trade in India

• Central Bureau of Investigation (CBI): It investigates a wide range of criminal activities, including corruption, economic offenses, and cases related to organized crime.
• Narcotics Control Bureau (NCB): It coordinates with other law enforcement agencies to address the illicit drug trade and associated criminal activities.
• Enforcement Directorate (ED): It investigates economic offenses, including money laundering and illicit financial activities and plays a crucial role in tracking and seizing assets acquired through illicit means.
• National Investigation Agency (NIA): It investigates and combats terrorism and offenses that have national and transnational implications. 

What are the international conventions against illicit trade that India has signed?

• United Nations Single Convention on Narcotics Drugs 1961.
• United Nations Convention on Psychotropic Substances, 1971. 
• United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.
• United Nations Convention Against Transnational Organized Crime, 2000.
• World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights.

Way Forward

• Combating Terror Financing: Terror financing is more dangerous than terrorism itself, because the ‘Means and Methods‘ of terrorism are nurtured from such funding. The government has taken several proactive measures, but there is a need to choke the flow of funds by nefarious entities.
• Customized Approaches: India’s geographical location is sandwiched between two of the world’s biggest drug producing zones, presence of porous borders, cross border terrorism etc. call for a customized approach to deal with illicit trade and associated issues. 
  • For instance, to curb digital piracy one could adopt technical controls, including digital rights management (DRM), network management, and content identification systems.
• Integrated Anti-Counterfeit Approach: It is vital that enforcement agencies take into account the diverse methods used by criminals and the ever evolving technological advancements used during these activities.
  • For instance, the finished leather trade which is a continuing cause of concern for luxury brands such as Louis Vuitton, operates in the Dharavi slum area in Mumbai which lacks any formal addresses and securing adequate police protection when executing an anticounterfeiting raid becomes a challenging task.
• Consumer Awareness: A combined effort involving manufacturers, government and various enforcement agencies is critical to generate consciousness amongst consumers by running targeted campaigns, highlighting dangers of buying and using these goods, etc.
• Improving Regulatory Landscape: Stringent anti-piracy regulations are a must to enforce IP rights and empower various enforcement agencies in India. There are certain gray areas and other laws including the Information Technology Act, Indian Contract Act, Companies Act, 2013, intellectual property, laws in copyrights and trademarks etc. Thus, there is a need for a separate e-Commerce law in the country. 
• Miscellaneous: Safeguarding India’s economic stability, Ensuring fair competition and ease of doing business, adoption of anti-counterfeit technologies, investing in research and development and collaboration with stakeholders.

Conclusion

India’s growing global trade prominence raises the risk of trade-based illicit financial flows, potentially affecting economic progress and supporting terrorism and criminal activities. To counter these risks, India should adopt a comprehensive approach tailored to its unique circumstances and challenges.

DOWNLOAD PDF

Context:

• This article is based on a news “Ram Madhav writes: Gandhi and Ambedkar – Sanatan Dharma, then and now” which was published in the Indian Express. The Prime Minister recently reiterated that Mahatma Gandhi’s timeless ideals guide our collective vision for a harmonious, inclusive and prosperous global future.

More on News

• October 2 marks the birth anniversary of Mahatma Gandhi. Another important event is commemorated on October 14, 1956 when Babasaheb Ambedkar, renounced Hinduism and converted to Buddhism.
• Differing opinions: Gandhi and Ambedkar held opposing views on fundamental social issues like varna and caste, leading to detailed discussions and ultimately the famous Poona Pact. 

Difference of Mahatma Gandhi and Ambedkar on various issues

Similarities between Gandhi and Ambedkar

• Limited state Authority: Both Gandhi and Ambedkar advocated for limited sovereign power of the state. They believed that ultimate sovereignty should rest with the people, not the government. 
  • This limitation on state authority was seen as essential to preserve individual spirit and personality.
• Mass mobilization: They believed that a change in the society could be seen only when the society collectively acts. Hence, they spurred mass mobilization against injustice.
• Struggle against Colonialism: Both of them worked only on major struggles but considered all struggles as essential.
• They knew that injustice couldn’t be eradicated without struggles.
• The works by Gandhi and Ambedkar highlight that material life is the basis of human activity.
• Moral values: They both believed that morals are eternal and are essential for coordinating material and social lives.
• Religious Scriptures: Both advocated that religious scriptures are to be read and understood.
• Social upliftment: Both of them worked on social emancipation.

Also read: Poona Pact, 1932

Gandhian Principles in the Constitution of India

• Directive Principles of State Policy (DPSP): DPSPs in Part IV of the Constitution have assimilated some of his ideas he envisaged for the country’s holistic development. 
  • Art.39:  To secure the equal right to livelihood and resources and discourages the concentration of wealth.
  • Art 40: Implementation of village panchayats or self-sufficient villages
  • Art.43 and 43B: Promote cottage industries and cooperative societies, respectively. 
  • Art.46: Uphold the educational and economic interests of weaker sections.
  • Art.47: Encourages the state to make policies to prohibit the consumption of intoxicants,
  • Art. 48: Prohibits the slaughter of cows and other milch cattle etc.
  • Art. 51:  enlists the promotion of international peace and honourable relations between nations.
• The Fundamental Rights:
  • Art. 15: Articles have been incorporated to prevent discrimination  
  • Art.17: abolish untouchability 
  • Art. 25: Promote secularism ()
  • Art. 29-30: Protect the interests of minorities ()
  • The Constitution (Eighty-sixth Amendment) Act, 2002, to promote education through Art.
  • Art 21A: Free and compulsory education to all children of the age of six to fourteen years.
• Decentralization: Adoption of universal adult suffrage and the accommodation of regional languages are in line with Gandhian views of devolution of power to the masses and respecting the multicultural nature of the country. 

Contribution of Ambedkar in Constitution Making

• Father of the Indian Constitution: Ambedkar was the Chairman of the Drafting Committee of Constitution
• States and Minorities: He wrote and submitted it  to the Constituent Assembly’s Sub-Committee on Fundamental Rights. 
  • A mini-Constitution in itself, States and Minorities framed strong constitutional protection for the Scheduled Caste community.
• Concept Of Federalism: His concept of federalism meant that the State was a federation in normalcy, but unitary in emergency.
• Strong Centre: In the Draft Constitution, he offered more powers to the Centre and made it strong. 
• Equality Of Opportunity: In the Draft Constitution the “Fundamental Rights”, prescribed were justifiable in the Court of Law. 
  • Of all the rights, Dr. Ambedkar observed “Equality of Opportunity” as the most important one. 
• Constitutional remedies: Ambedkar characterized Article 32 as the heart and soul of the Constitution.
• Directive Principles Of State Policy: These contained the positive obligations of the state towards its citizens. The Directives were meant to ensure social and economic democracy which was secured by the provisions of fundamental rights in a written Constitution.

Also read: Making of the Constitution

Relevance of Gandhism in today’s world

• Non Violence: In a world marred by war and the menace of terrorism, the idea of Non- violence is needed more and more today than the past days.
• Tolerance: The world today needs more and more religiously and faith wise tolerant people in societies where violence is committed in the name of religion. 
  • Tolerance in the society will help in neutralizing the ethnocentric bias in the globe that is taking place day by day on the basis of religion, caste, ethnicity and region etc.
• Socialism: The principle has become the lighthouse for Indian policy makers over the years. 
  • Behind the poverty alleviation programs, Sarva Shiksha Abhiyan, universal health care( Ayushman Bharat) , skill India programs,etc, the core inspiration comes from Gandhianism. 
  • National food security act of India to Obamacare policy of the United States of America Gandhian concept of socialism holds the key as a guiding principle.
• Cleanliness: Gandhiji gave great emphasis upon cleanliness or Swachata which is evident in the recent Swacchta Bharat Abhiyaan, the biggest cleanliness drive of India
  • Along with clean roads, toilets for a clean India, a corruption free society with greater level of transparency and accountability is required.
• Self sustenance: The world is facing the burden of global warming, climate change and resource crunch.
  • The world, including the United Nation(UN) has recognized the Gandhian idea of sustainable development.
  • The recent inauguration of Gandhi Solar Park at the UN headquarters is a testimony to that. 
  • Behind all the climate deals, environmental conservation treaties and sustainable development goals of the UN Gandhian view self sustenance operates as driving philosophy.

Conclusion

Both Gandhiji and Ambedkar were great leaders and they had their own principles and ideals in shaping the national movement as well as Indian society. Both had differences over their respective political, social and religious philosophies and practical-political strategies but they shared a genuine and deep commitment towards emancipation of downtrodden and social upliftment of people. Their ideologies serve as timeless illustrations of unwavering commitment to the noble principles of life and it is incumbent upon every individual to imbibe these virtues. 

DOWNLOAD PDF