26th October 2024

Article: 26^th October, 2024

Topic: India’s Aadhaar System

Relevance: GS Paper: 2 – Governance

Source: Times of India

Context

• The 2018 Economics Prize winner and Nobel laureate Paul Romer has hailed India’s Aadhaar system as one of the world’s most important technology advancements.
  
  

What is Aadhaar?

• After completing the verification process established by the Unique Identification Authority of India (UIDAI), residents of India are assigned a 12-digit random number known as their Aadhaar number.
• The only biometric and demographic data required of the person wishing to enroll is minimal.
• Biometric data: Facial photos, two iris scans, and ten fingerprints.
  
  

The Aadhaar Program in India

• Aadhaar is an important policy tool for fiscal budget management, public sector delivery reforms, social and financial inclusion, ease, and hassle-free, people-centered government.
• One of the main tenets of “Digital India” is that every citizen of the country is provided with a unique identity.
• Its uniqueness, authenticity, financial address, and e-KYC capabilities allow the government to offer various subsidies to citizens directly.
  
  

Aadhaar based payment system (ABPS)?

• Employees’ Aadhaar numbers are connected to both their bank accounts and job cards under ABPS.
• The employee’s financial address is determined by their Aadhaar number.
  – Workers must link their Aadhaar card to their employment card in order to be eligible for ABPS, and the names on the two documents must match.
• January 1, 2024, marked the required implementation of the ABPS.

Advantages of ABPS Payments

• Simple and Safe Verification: Through biometric authentication, Aadhaar offers a distinct means of identity, securing transactions and lowering the possibility of fraud.
• Easy to use: Payment systems based on Aadhaar eliminate the need for physical cards or documents for financial transactions.
• Decreased Leakages in Subsidy Programs: Since Aadhaar is frequently connected to a number of government welfare and subsidy programs, the benefits are guaranteed to reach the intended recipients directly.
• Encouragement of Digital Payments: By encouraging digital transactions, the incorporation of Aadhaar into payment systems supports the government’s objective to move toward a less cash-based economy.
  – This is in line with larger efforts to improve the nation’s digital infrastructure.
• Reducing Frauds: Millions of disadvantaged people now receive subsidies and benefits directly, cutting out intermediaries and lowering fraud, thanks to the JAM Trinity (Jan Dhan-Aadhaar-Mobile) and Direct Benefit Transfers (DBT), which link Aadhaar to welfare programs and services.
  
  
  

Issues Regarding ABPS Payments

• Over-Reliance: An over dependence on technical instruments has led to unsatisfactory implementation, leaving beneficiaries without a suitable avenue for systemic corrections.
• Authentication Problems: People have occasionally encountered issues with biometric authentication as a result of things like bad connectivity, technical malfunctions, or mistakes in the Aadhaar database.
• Payment failures are the result of mistakes made at any stage of the procedure.
• The National Payments Corporation of India (NPCI) and the bank account must be mapped and Aadhaar-seeded. These criteria are challenging for workers in rural areas, and there is insufficient infrastructure support to achieve the statutory standards.

Conclusion

• According to the Ministry of Rural Development, if there are technological difficulties, it may take into account granting gram panchayats an exemption from ABPS on an individual basis.
• Direct Benefit Transfer (DBT), made possible by Aadhaar, has drastically changed India’s welfare system by increasing transparency and guaranteeing effective service delivery.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Consider the following statements

1.Aadhaar metadata cannot be stored for more than three months.

2.State cannot enter into any contract with private corporations for sharing of Aadhaar data.

3.Aadhaar is mandatory for obtaining insurance products.

4.Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.

Which of the above statements are correct?

1. 1 and 4 only
2. 2 and 4 only
3. 3 only
4. 1, 2, 3 only

Ans: b

Explanation

According to a Supreme Court ruling, Aadhaar metadata cannot be kept on file for longer than six months.
A portion of Section 57, which permitted private companies to validate Aadhaar data, was declared unlawful by the Supreme Court.
The same 2018 ruling ruled that it was illegal to require Aadhaar for services other than assistance programs. Aadhaar is not required to obtain insurance, as IRDAI explained in an advise released in January 2019.
In the Aadhaar ruling, the Supreme Court defined social programs as those financed by the Indian Consolidated Fund. The constitutionality of Section 7 of the Aadhaar Act, which stipulates that the Central or State Governments have the authority to require the possession of an Aadhaar number or Aadhaar authentication in order to be received, was also upheld.

Mains Model Questions Q. Can all identifying needs be met by Aadhaar in a single place? Give evidence to support your statements.

Introduction:

After completing the verification process established by the Unique Identification Authority of India (UIDAI), residents of India are assigned a 12-digit random number known as their Aadhaar number. Any resident of India, regardless of age or gender, may freely join in order to receive an Aadhaar number. The UIDAI is in charge of gathering the data.

Body:

A one-stop shop for all things related to identification:

• Beneficiary identification is made simple by Aadhaar authentication, which allows implementing agencies to confirm beneficiaries at the time of service delivery and guarantees that benefits are delivered to them in the intended manner.
• Portable identity proof: Since Aadhaar is a nationally recognized identity, the Aadhaar system allows millions of people who migrate across the nation to have mobility by offering a portable identity proof that can be validated online at any time and from any location through Aadhaar authentication.
• Reduces leaks through targeted distribution: UIDAI’s authentication services can help any social welfare programs that require beneficiary confirmation prior to service delivery. As a result, leaks will be reduced and services will only be provided to the designated recipients.
• Increasing Efficiency: The government can enhance distribution processes and make better use of its limited development funds by using the Aadhaar platform, which offers precise and transparent information about the service delivery mechanism.

Issues:

• Since these numbers have been utilized by scammers for illegal activities like identity theft and Know Your Customer (KYC)-related fraud, among other crimes, the risks of giving the complete Aadhaar number to several authorities are clear.
• Scammers have been able to steal welfare funds at the expense of legitimate recipients thanks to biometric thefts, which are connected to other schemes.
• Some reports claim that delays in benefit disbursement have resulted from login issues.
• The creation of “false negatives” and authentication success rates have long been problems. For instance, workers and tribal members who perform manual labor are prone to fingerprint alterations over time.

Conclusion: One of the most important identity certificates and a key tool for the targeted distribution of benefits under different government programs is Aadhaar. However, certain bad actors may exploit your Aadhaar number. Given this, UIDAI’s decision to provide the Masked Aadhaar Card Service is a big step.

Article: 26^th October, 2024

Topic: India-Germany signs MoU on Green Hydrogen, technology, & trade

Relevance: GS Paper: 2 – International Relations

Source: Business Line

Context

• During the 7th India-Germany Intergovernmental Consultations, India and Germany recently signed a number of accords, including the Indo-German Green Hydrogen Road Map and the Mutual Legal Assistance Treaty in Criminal Matters.
  
  

About India-Germany Relations

• Based on respect for one another, shared ideals, and shared interests, India and Germany have a strong and complex connection.
• It reflects the depth and scope of their bilateral ties and covers a wide range of topics, including political, economic, scientific, and cultural exchanges.
  
  

Historical Background

• In 1951, India and Germany formally established diplomatic ties.
• These relationships have changed over the years, as evidenced by several agreements, high-level visits, and strategic discussions.
• Respect for human rights, a dedication to multilateralism, and common democratic principles form the cornerstone of this partnership.

Important Points of the Agreements

• Green Hydrogen Roadmap: Strategies to encourage private sector investment, commerce, and export of green hydrogen were outlined in the Indo-German Green Hydrogen Roadmap.
• Decarbonizing hard-to-abate industries like steel, refineries, and heavy-duty transportation is its goal.

• Technology and Innovation: A Road Map on Innovation and Technology, which includes cooperative research and development on new materials, was agreed upon by both countries.
• Trade and Economic Cooperation: In the European Union, Germany is India’s biggest commercial partner. Through the EU, Germany and India have a Bilateral Trade and Investment Agreement (BTIA).
• With large investments in industries including automotive, engineering, chemicals, and renewable energy, the volume of bilateral commerce has been rising significantly.
• Enhancing bilateral trade, which has already topped $30 billion, was one of the topics the leaders discussed.
• Germany emphasized that one-sided reliance should be avoided, especially in important areas like vital technologies and raw commodities.
• The Mutual Legal Assistance Treaty in Criminal Matters and an agreement on the exchange and mutual protection of secret information are among the treaties that were inked.
• The two nations’ legal and security cooperation is intended to be strengthened by these accords.
• Strategic Importance: By highlighting the country’s skilled workforce and the fact that the number of visas for skilled Indians is rising from 20,000 to 90,000 annually, India invited German companies to invest in India and emphasized its position as a leading hub for diversification and de-risking in international trade and manufacturing.

Additional Dimensions

• Political and Strategic Cooperation: The Inter-Governmental meetings (IGC), a special biennial dialogue mechanism, are one of the frequent high-level meetings between Germany and India.
• With regard to global issues including climate change, terrorism, and the post-COVID-19 economic recovery, both countries reiterated their dedication to a functioning multilateral system and a rules-based international order.
• The proposals for permanent seats on the UN Security Council are supported by the G4 countries (Brazil, Germany, India, and Japan).
• Scientific and Technological Cooperation: Both nations work closely together in fields including digitalization, environmental technology, and renewable energy.
• In order to promote collaborative research and innovation initiatives, the Indo-German Science and Technology Centre (IGSTC) is essential.

• Cultural and Educational Exchanges: To foster understanding and appreciation between cultures, the Indian Council for Cultural Relations (ICCR) in Germany and the Goethe-Institut in India organize cultural exchanges.
• Educational partnerships are also flourishing, with many Indian students studying in Germany for higher education, especially in the disciplines of engineering and technology.
• Climate Change and Sustainable Development: Addressing climate change and advancing sustainable development are priorities for Germany and India.
• It can be difficult, though, to coordinate their strategies and guarantee the successful execution of cooperative projects.
• Although it necessitates ongoing work and collaboration, the Green and Sustainable Development Partnership is a positive beginning.

Key Issues and Concerns

• Economic Dependencies and Trade Imbalances: India frequently has a trade deficit with Germany, raising concerns about trade imbalances.
• Geopolitical Changes and Strategic Alignments: With the ongoing confrontation between Russia and Ukraine, the geopolitical environment has been changing quickly.
• Germany’s relationship with India is affected by its strategic shift, which is characterized by more defense spending and a reassessment of its connections with China and Russia.
• Migration & Mobility: Efforts are being made to make it simpler for professionals and students to travel between the two nations.
• However, there may be substantial obstacles due to regulatory issues and disparate immigration laws.

Future Prospects

• With a strong emphasis on sustainability, innovation, and economic growth, the Memorandums of Understanding that India and Germany have signed usher in a new era in their bilateral relations.
• Together, the two countries want to accomplish their shared objectives of lowering their dependency on fossil fuels, decarbonizing their economies, and building strong green hydrogen economies.

Conclusion 

• Relationships between Germany and India are marked by a strong feeling of trust and common goals.
• Their collaboration has the potential to make a substantial contribution to world peace, stability, and sustainable development as both countries negotiate the challenges of the twenty-first century.
• In addition to fortifying India and Germany’s strategic connection, the recent partnership establishes a standard for international cooperation in tackling global issues including sustainable development and climate change.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Which of the following does not belong to the G4?

a. Australia

b. Russia

c. Germany

d. India

Ans: a

Explanation

The G4 is a collection of countries—Brazil, Germany, India, and Japan—that want to join the UNSC permanently.
They are backing one another’s applications to join the UNSC permanently.

Mains Model Questions Q. Historically, India’s ties with Germany have not kept pace with those with other European nations. Discuss about the importance of a solid India-Germany relationship in light of the remark.

Introduction:

Common democratic values form the basis of India-German bilateral relations.
Following World War II, India was one of the first nations to open diplomatic relations with the Federal Republic of Germany. Germany is India’s second-most significant partner in terms of technology cooperation and its biggest economic partner in Europe.

Body:

Problems in the relationship between Germany and India:

• The West has criticized India for its stance on the Russian invasion of Ukraine, its refusal to participate in crucial war votes, and its ongoing economic involvement, such as the import of cheap petroleum.

• India and Germany do not have a strong bond despite their shared aims in defending democratic values. India, for instance, has taken a pragmatic approach to working with the junta in Myanmar.
  China and India have territorial disputes. There is economic connection even when Germans do not trust China.
• The absence of a distinct bilateral investment treaty between the two nations is an issue. Through the EU, Germany and India have a Bilateral Trade and Investment Agreement (BTIA).

Importance of a solid India-Germany relationship:

• Economically, Germany is India’s biggest EU trading partner.
• Green technologies and clean energy have become the partnership’s main pillars. Last year saw the establishment of the Green and Sustainable Development Partnership. In the field of green hydrogen, there is collaboration.
• Mobility and migration: Indians with technological skills could fill the skilled labor shortfall in Germany.
• Security: India aims to wean itself off of Russia’s military reliance. Additionally, Berlin is reviewing its stance on armaments exports. India may find Germany to be a valuable defense ally. Germany’s intention to increase military deployment in order to strengthen its strategic engagement in the Indo-Pacific.
• Europe is placing a higher priority on values-based alliances with like-minded nations while relations with China and Russia are uncertain. It can promote collaboration between Germany and India.
• Third-country development projects are part of a recent triangular cooperation agreement between Germany and India.

Conclusion: India and Germany have the potential to become key players in forming the new global order throughout periods of changing geopolitical alliances and realignments.

Article: 26^th October, 2024

Topic: Minimum Diet Diversity Failure

Relevance: GS Paper: 2 – Health

Source: Down To Earth

Context

• The All-India Institute of Medical Sciences published the report in the National Medical Journal of India.
  
  

Minimal diet diversity

• The World Health Organization (WHO) has accepted minimum dietary diversity as a valid and popular indicator that shows how easily children can access and consume a variety of food groups and key micronutrients.

• According to the WHO, variables related to nutrition account for 11% of the worldwide disease burden and about 35% of child fatalities.
  
  

Key findings from the most recent report

• Sources of data: Researchers investigated MDDF among children longitudinally, geographically, and across population groups with different background characteristics using National Family and Health Survey (NFHS) information from rounds 3, 4, and 5.
• The Ministry of Health and Family Welfare’s NFHS surveys produced representative statistics for India. In NFHS-3 (2005–06), the MDDF rate was 87.4%; in NFHS-5 (2019–21), it was 77.1%.
• MDDF Prevalence: Although incidence has decreased, eight Indian states—mostly in the north, central, and west—still have more than 80% of children aged six to twenty-three months with MDDF.

• The largest percentages are seen in Uttar Pradesh (86.1%), Rajasthan (85.1%), Gujarat (84%), Maharashtra (81.9%), and Madhya Pradesh (81.6%).

• Regional Trends: As of 2019–21, Central India had the greatest MDDF (84.6%). Out of the 707 districts examined, only 95 had MDDF prevalences < 60%; these districts were primarily located in the south, east, northeast, and north.
• Diet Diversity: From NFHS-3 to NFHS-5, consumption of foods in eight groups, such as eggs, foods high in vitamin A, vegetables, and meat, increased.
• Elements That Impact MDDF: Children of young, illiterate mothers, girls, low-income households, anemic children, low birth weight babies, and those who do not receive routine health examinations at anganwadis/ICDS facilities have greater MDDF, according to logistic modelling.
  
  

Suggestions

• The study highlights the need for comprehensive policy interventions in the delivery of nutrition resources, counseling for the beneficiary population to screen for malnutrition and food intake, and bolstering local self-governance structures to carry out programs.
• Although initiatives like Poshan Abhiyaan and ICDS are in operation, they need to work together more closely to fill nutritional resource shortfalls.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Consider the following statements regarding Minimum Diet Diversity Failure (MDDF)

1. Children who do not receive a combination of important dietary categories are said to have this disorder.
2. Dietary diversity is a measure of food quality used by the World Health Organization (WHO).
3. More than 80% of youngsters in eight Indian states suffer from MDDF, according to a recent study.

Which of the above statements are correct?

1. 1 and 3
2. 2 only
3. 1 and 2
4. 1, 2, 3

Ans: d

Explanation

Children who do not acquire a diversity of important food categories required for their general health and development are said to have Minimum Diet Diversity Failure (MDDF).
In order to ensure that children get a minimum number of various food categories, the World Health Organization (WHO) utilizes dietary diversity as an indication of diet quality.
According to a recent study, Minimum Diet Diversity Failure (MDDF) affects about 80% of youngsters in eight Indian states. Particularly high rates are found in states like Madhya Pradesh, Gujarat, Maharashtra, Rajasthan, and Uttar Pradesh.

Mains Model Questions Q. There is a growing divergence in the relationship between poverty and hunger in India. The shrinking of social expenditure by the government is forcing the poor to spend more on non-food essential items squeezing their food-budget. Elucidate. (UPSC PYQ 2019)

Introduction:

The gap between poverty and hunger has been widening in India, as declining rates of poverty have not been accompanied by a decline in hunger. One of the main causes of this discrepancy is the government’s reduction in social spending, which pushes the poor to spend more on necessities other than food, thus reducing their food budget.

Body:

• In India, the trends of hunger and poverty are becoming increasingly different. India ranks poorly on global hunger indices, and hunger levels are still persistently high despite a large drop in poverty rates over time. This suggests that hunger and malnutrition have not been adequately addressed by economic expansion and poverty alleviation alone.
• One of the main causes of this discrepancy is the government’s declining social spending. Investments in vital social services including housing, healthcare, and education have decreased as a result of budgetary limitations and shifting policy objectives. The impoverished now have to set aside a bigger percentage of their income to cover their critical non-food requirements as a result of the cutback in social spending.
• According to a report by Oxfam India, the nation has been spending less on social safety, health care, and education as a percentage of GDP over time. The poor, who frequently depend on public services for their fundamental necessities, have been disproportionately impacted by this cut in social spending.
• Consequently, the impoverished have a reduced amount of money available for food expenditures, resulting in a tightened food budget. This exacerbates hunger and malnutrition among disadvantaged populations by leading to insufficient access to nutrient-dense food.

Conclusion: It is crucial to guarantee sufficient social spending that permits the impoverished to obtain necessary services without sacrificing their food budget in order to alleviate the widening gap between poverty and hunger in India. In addition to reducing hunger and malnutrition, funding social services and social protection programs will promote more durable and inclusive development results.

Article: 26^th October, 2024

Topic: Oxfam report on reducing inequality

Relevance: GS Paper: 3 – Inclusive Growth

Source: Down To Earth

Context

• Development Finance International (DFI) and Oxfam, two global non-governmental organizations, publish the Index, which evaluates 164 nations’ dedication to lowering inequality.
  
  

About

• The index’s fifth edition ranked nations according to their progressive taxes, labor rights and wages, and public services spending (health, education, and social protection).
  
  

Key Points

• Policies and practices that are likely to promote economic inequality are being implemented in nine out of 10 countries.

• Significant Cuts: Eighty-four percent of nations have reduced their investments in social safety, health care, and education; eighty-one percent have made their tax systems less effective at reducing inequality; and ninety percent have seen a decline in minimum salaries and labor rights.

• The best performers: With Norway, Canada, Australia, Germany, and Finland at the top, they are all high-income nations.
• Labor policies: These nations begin with significantly less disparity in wages.
• They collect more taxes and spend more on social programs.
• The top-performing low- and middle-income nations are South Africa, Costa Rica, and Belarus.

• These low- and lower-middle-income nations—South Sudan, Nigeria, Zimbabwe, Uganda, Central African Republic, Liberia, Sierra Leone, and Burundi—are the worst performers.
  
  

Suggestions:

• Create precise, time-bound national plans to lessen inequality.
• Make public spending on vital services like healthcare, education, and social protection a top priority.
• By taxing the wealthiest 1%’s income, progressive taxes will be increased.
• Protect all workers by getting involved in the labor market.
• Create gender-responsive policies to ensure that paid care workers are fairly compensated and represented, as well as to identify, decrease, and redistribute unpaid care labor.

Also Read Topics & Concepts:

Prelims Practice Questions

Q. Consider the following statements

1. Human development has advanced significantly as a result of India’s economic expansion.
2. Only through advancements in human development and poverty alleviation can the dual goals of rapid economic expansion and inequality reduction be accomplished.

Which of the above statements are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Ans: b

Explanation

In the Human Development Report (HDR), India was rated 134th out of 193 nations. In terms of human development, India still lags behind Bangladesh, Bhutan, and Sri Lanka despite having the fifth-largest GDP today. Human development has not increased in tandem with its economic expansion.
A emphasis on enhancing human development and lowering poverty is necessary to achieve the interrelated goals of strong economic growth and decreasing inequality. A nation may improve the skills and productivity of its people and promote economic growth while resolving inequality by investing in healthcare, education, and employment opportunities.

Mains Model Questions Q. The idea of “inclusive growth” has taken center stage in economic development as a result of growing economic inequality and its impact on prosperity and human well-being. Describe.

Introduction:

Economic growth that generates opportunity for everyone and is equitably dispersed throughout society is known as inclusive growth. The affluent class’s disproportionate control over resources is the root cause of economic inequality.
Body:

Growing economic inequality and its impact on prosperity and human well-being:

• Economic growth that generates opportunity for everyone and is equitably dispersed throughout society is known as inclusive growth. The affluent class’s disproportionate control over resources is the root cause of economic inequality.
• Poverty: In terms of health, education, and level of living, about 16% of Indians live in multidimensional poverty.

Economic development resulting from inclusive growth:

• Decreased Poverty: By guaranteeing that economic benefits reach disadvantaged groups, inclusive growth immediately helps to reduce poverty.
• Social Stability: By lessening the differences between social groupings, it promotes social cohesion.
• Improved Human Development: A better educated, healthier, and more skilled populace results from inclusive growth, which promotes access to healthcare, education, and essential services.
• Sustainable Development: Long-term social and environmental stability is facilitated by including all facets of society in economic activity, which lowers the possibility of leaving some groups behind.

Conclusion: Encouraging inclusive growth is essential to a just and sustainable society. In order to prioritize policies and investments in education, employment, social safety nets, infrastructure, regional development, and gender equality for a bright and sustainable future, collaboration between different sectors is crucial.