Daily Current Affairs for UPSC CSE
Topics Covered
- Retail Inflation
- Standing Committee
- Man Portable air defence system
- Border Road Organisation
1 . Retail Inflation
Context : India’s retail inflation inched up to an eight-month high of 6.07% in February from 6.01% in January, with rural India experiencing a sharper price rise at 6.38%. For urban consumers, the inflation rate, in fact, fell from 5.91% in January to 5.75% in February.
About the News
- Food prices saw an upward trajectory, with inflation measured by the Consumer Food Price Index rising to 5.85% in February from 5.43% in January. This trend was divergent for rural and urban India, with the latter seeing a slight moderation in food inflation, while rural food inflation shot up by 0.7 percentage points to 5.87%. Food and beverages inflation hit a 15-month high, and the rising prices of edible oils are likely to pose a challenge in coming months
- The RBI has projected an average retail inflation of 4.5% for the coming year.
- Most economists don’t expect the RBI to shift from its accommodative growth-focused policy stance yet, despite the retail inflation crossing its tolerance threshold of 6% for the second month.
How does India measure retail inflation?
- Rate of inflation based on the consumer price index (CPI) is called as Retail Inflation
- The CPI monitors retail prices at a certain level for a particular commodity; price movement of goods and services at rural, urban and all-India levels.
- The change in the price index over a period of time is referred to as CPI-based inflation, or retail inflation.
What is Consumer Price Index
- Consumer Price Index is a measure of change in retail prices of goods and services consumed by defined population group in a given area with reference to a base year.
- This basket of goods and services represents the level of living or the utility derived by the consumers at given levels of their income, prices and tastes.
- The consumer price index number measures changes only in one of the factors; prices.
- This index is an important economic indicator and is widely considered as a barometer of inflation, a tool for monitoring price stability and as a deflator in national accounts.
- The dearness allowance of Government employees and wage contracts between labour and employer is based on this index.
- Consumer price indices compiled in India are CPI for Industrial workers CPI(IW), CPI for Agricultural Labourers CPI(AL) and; Rural Labourers CPI(RL) and (Urban) and CPI(Rural).
CPI(IW) and CPI(AL& RL)
- The CPI(IW) and CPI(AL& RL) compiled are occupation specific and centre specific and are compiled by Labour Bureau.
- This means that these index numbers measure changes in the retail price of the basket of goods and services consumed by the specific occupational groups in the specific centres.
CPI(Urban) and CPI(Rural)
- CPI(Urban) and CPI(Rural) are new indices in the group of Consumer price index and has a wider coverage of population.
- This index compiled by Central Statistical Organisation tries to encompass the entire population and is likely to replace all the other indices presently compiled.
- In addition to this, Consumer Food Price Indices (CFPI) for all India for rural, urban and combined separately are also released w.e.f May, 2014.
Other Important Points
- The Reserve Bank of India (RBI) has started using CPI-combined as the sole inflation measure for the purpose of monetary policy.
Why is faster inflation a concern for policymakers?
- Faster retail inflation is indicative of prices of household items rising quickly. While inflation affects everyone, it is often referred to as a ‘tax on the poor’ as the low-income stratum of society bears the brunt.
- Persistent high inflation pushes several items out of reach for this category of consumers. For example, onions and potatoes are generally a key staple in an average Indian family’s diet.
- But, if the price of potatoes starts rising rapidly, a poor household is often forced to sharply reduce or forgo its consumption of this key source of essential nutrients, including carbohydrates.
- Over time, if unchecked, persistent high inflation erodes the value of money and hurts several other segments of the population, including the elderly living off a fixed pension. It hence ends up undermining a society’s consumptive capacity, and thereby, economic growth itself.
What is the RBI’s role in tackling inflation?
- In 2016, the Reserve Bank of India Act, 1934, was amended to provide a statutory basis for the implementation of a flexible inflation-targeting framework, where the Centre and the RBI would review and agree upon a specific inflation target every five years.
- Under this, 4% was set as the Consumer Price Index (CPI) inflation target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6% and the lower tolerance limit of 2%.
- To the extent that ensuring price stability is its primary goal, the RBI through its MPC must constantly assess not just current levels of inflation and prices of various goods and services in the economy, but also take into consideration inflation expectations both of consumers and financial markets so as to use an array of monetary tools, including interest rates, to contain inflation within its target range.
2 . Standing Committees
Context : Airlines charging passengers a fee for seat selection on an aircraft is “arbitrary and unjustifiable” and the government must keep a close watch on fare pricing, a parliamentary panel said in its report.
About the issue
- Various airlines in the country offer passengers the option to select their seats on an aircraft before a flight. This could cost anywhere between ₹150 and ₹1,000 depending on the location of the seat. Passengers not interested in paying extra could wait for a seat to be assigned to them at the time of check-in at the airport.
- According to the Standing committee fixing of different fares for selection of seats in the same flight is arbitrary and unjustifiable. Hence, Committee on the principle of equity feels that all the seats in a same flight should have same fare
- It rejected the response of the Ministry of Civil Aviation on the issue that air travel was “a contractual matter between airline and passenger, which is commercial in nature” as one that was “not at all justified.
- The Committee is of the opinion that for the Civil Aviation sector to grow in an open market, it is justifiable that the private airline operators should be given a free hand to fix the airfares as they are governed by competition. However, the Committee would like to draw the attention of the Ministry to the provision of the Aircraft Rules, 1937, which specifically mentions that the fares should be reasonable and should maintain reasonable profit
- Airlines in India are allowed to “unbundle” airfares, which lets them break-up their total fare into service components and charge separately for them.
- The panel recommended that the government issue guidelines to ensure that flights on the same route operated by different airlines should have similar airfares.
About Standing Committee
- Standing Committees are permanent and regular committees which are constituted from time to time in pursuance of the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business in Lok Sabha.
- The work of these Committees is of continuous nature.
- The Financial Committees, DRSCs and some other Committees come under the category of Standing Committees.
- Origin: Rules Committee of the Lok Sabha had recommended setting-up of 17 Department Related Standing Committees (DRSCs). Accordingly, 17 Department Related Standing Committees were set up on 8 April 1993. In July 2004, rules were amended to provide for the constitution of seven more such committees, thus raising the number of DRSCs from 17 to 24.
- Members: Each of these committees have 31 members – 21 from Lok Sabha and 10 from Rajya Sabha. These members are to be nominated by the Speaker of Lok Sabha or the Chairman of Rajya Sabha respectively.
The functions of these Committees are:
- To consider the Demands for Grants of various Ministries/Departments of Government of India and make reports to the Houses;
- To examine such Bills as are referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may be, and make reports thereon;
- To consider Annual Reports of ministries/departments and make reports thereon; and
- To consider policy documents presented to the Houses, if referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may be, and make reports thereon.
Importance of Standing committees
- Parliament deliberates on matters that are complex, and therefore needs technical expertise to understand such matters better. Committees help with this by providing a forum where Members can engage with domain experts and government officials during the course of their study.
- Committees also provide a forum for building consensus across political parties. The proceedings of the House during sessions are televised, and MPs are likely to stick to their party positions on most matters. Committees have closed door meetings, which allows them to freely question and discuss issues and arrive at a consensus.
- After a Committee completes its study, it publishes its report which is laid in Parliament. These recommendations are not binding, however, they hold a lot of weight.
3 . Man Portable air defence system
Context : On March 13, United States President Joe Biden approved a $200-million arms package for Ukraine, which would include U.S. made Stinger Missiles, which are a type of shoulder-fired Man-Portable Air-Defence Systems (MANPADS).
What are MANPADS?
- Man-Portable Air-Defence Systems are short-range, lightweight and portable surface-to-air missiles that can be fired by individuals or small groups to destroy aircraft or helicopters. They help shield troops from aerial attacks and are most effective in targeting low-flying aircrafts.
- MANPATs or Man-Portable Anti-Tank Systems work in a similar manner but are used to destroy or incapacitate military tanks.
- MANPADS can be shoulder-fired, launched from atop a ground-vehicle, fired from a tripod or stand, and from a helicopter or boat. Weighing anywhere between 10 to 20 kilograms and not being longer than 1.8 metres, they are fairly lightweight as compared to other elaborate weapon systems, making them easy to operate by individual soldiers. Operating MANPADS requires substantially less training.
- According to U.S.-based policy think-tank, the RAND Corporation, MANPADS have a maximum range of 8 kilometres and can engage targets at altitudes of 4.5 km.
- Most MANPADS have passive or ‘fire and forget’ guidance systems, meaning that the operator is not required to guide the missile to its target, enabling them to run and relocate immediately after firing. The missile stays locked-on to the targeted object, not requiring active guidance from the soldier.
- The missiles are fitted with infrared (IR) seekers that identify and target the airborne vehicle through heat radiation being emitted by the latter.
When were MANPADS used in the past?
- The first MANPADS were introduced by the United States and Soviet Union in the 1960s. Russian and U.S. MANPADS were also used during the Vietnam war. The U.S. supplied MANPADS to the Mujahideen in Afghanistan in the 1980s, which the latter used against the Soviet forces.
- Countries such as India, Pakistan, Germany, U.K., Turkey and Israel have also used MANPADS in their defence efforts.
- As of 2019, 20 countries had developed the wherewithal to manufacture MANPADS and have together made 1 million such systems for defence and export purposes.
- Over time, non-state actors such as rebel and terrorist groups have also illicitly acquired MANPADS, using them during civil wars and other high-intensity conflicts. MANPADs have been used in the Syrian war and in Libya. Non-state groups in African countries like Sudan, South Sudan, Angola, Somalia and Congo have also acquired and used MANPADs.
- Russia is by far the biggest exporter of MANPADs, having sold over 10,000 such systems between 2010 and 2018 to various countries including Iraq, Qatar, Kazakhstan, Venezuela, and Libya.
What are the common variants of MANPADs?
- The most common make of MANPADs is the U.S.-made Stinger missiles. These weigh about 15 kg, have a range of 4,800 metres or 4.8 km, and can engage low-flying aircrafts at an altitude of 3,800 metres. They have a passive guidance system, which uses infrared technology. Stingers have been sent or are currently being sent to Ukraine by the U.S., Germany, the Netherlands and Denmark. In January, the U.S. State Department gave clearance to Baltic countries Estonia, Lithuania and Latvia to provide U.S.-made stingers to Ukraine.
- Stinger’s Russian or Soviet-made counterparts are the Igla MANPADS, which also employ infrared technology. They were used in Iraq when it was invaded by the U.S. in 2003. They have also been used by India, for instance, as part of Operation Trishul Shakti of 1992, during the Siachen conflict.
- Starstreak, the British army’s equivalent of the Stinger missiles, have also been used in the past and the U.K.’s Secretary of State for Defence, Ben Wallace, said recently that the U.K. is formulating a plan to provide Ukraine with a shipment of Starstreaks.
- Sweden makes the RBS-70 MANPADS serieswhile China’s version, FN-6, is akin to the Stinger.
What are the concerns around MANPADS?
- Many observers have pointed out that sending MANPADS to Ukraine may have its share of not so positive effects. The U.S. has also mentioned the ‘risks’ involved in sending such weapons to Ukraine.
- According to the Global Organised Crime Index, “Ukraine is believed to have one of the largest arms trafficking markets in Europe. While it has long been a key link in the global arms trade, its role has only intensified since the beginning of the conflict in eastern Ukraine.”
- After the annexation of Crimea by Russia in 2014, weapons supplied by other countries to aid Ukraine ended up in the wrong hands in multiple cases. Reports indicate that weapons in the state arsenal were illicitly acquired and smuggled by criminal and non-state rebel groups. The Organised Crime Index states that “arms are reportedly trafficked domestically, but the illicit arms trade is also linked to criminal arms markets in Russia, Belarus, Moldova, Georgia, and Turkey, as well as countries in the EU and the former Yugoslavia.”
- The index pointed out that cities in Ukraine such as Odesa, Dnipro, Kharkiv, and Kyiv are significant logistical centres for criminal networks. Meanwhile, the Small Arms Survey of 2017 pointed out that Ukraine has 1.2 million legal firearms and around 4 million illegal weapons, a lot of them fully-automatic military weapons.
- Thus, observers fear that sending lightweight ground-based MANPADS to Ukraine may contribute to intensifying the network of illegal weapon trade. In other conflict-hit states as well, there is widespread evidence of MANPADS ending up with non-state and terrorist groups; the most prominent cases being Syria, Libya and Afghanistan. According to a Pentagon-financed study by the RAND Corporation from 2019, 57 non-state armed groups were confirmed or suspected to be possessing MANPADS.
- Another concern around MANPADS is civilian attacks. According to the 2019 study mentioned above, more than 60 civilian aircraft have been hit by MANPADS since the 1970s, claiming the lives of more than 1,000 civilians.
4 . Border Road Organisation
Context : Post-Galwan incident, the Government of India sanctioned 32 roads along the China border, of which work has started on eight roads, a report tabled in the Rajya Sabha on Monday said.
About BRO
Vision
- Nation’s most reputed, multifaceted, transnational, modern construction Organisation committed to meeting the strategic needs of the armed forces with enlightened leadership, a strong, skilled and committed work force, a well ingrained value system and a strong environment conscience. Playing a national role in socio economic development through its large scale contribution to infrastructure development.
Mission
- To support the armed forces meet their strategic needs by committed, dedicated and cost effective development and sustenance of the infrastructure.
- To achieve international levels of quality excellence and time consciousness in a diversified sphere of construction activity in a cost effective manner.
- Optimise potential and expertise through increased involvement in agency, transnational and national development projects.
- To attain leadership in development, adoption, assimilation and use of state of the art technology.
- To create the environment for accurate, real time and effective decision making through optimising use of information technology.
- Through a focus on core competencies; ensure highest level of skill and proficiency in construction activity.
- To sustain a sense of values in the Organisation that will ensure a high level of self esteem in each individual and immeasurable synergy in the Organisation
- To help enrich the quality of life of the community and ensure all round growth.
Role of the BRO
In Peace
- Develop & Maintain the Operational Road Infrastructure of General Staff in the Border Areas.
- Contribute to the Socio-Economic Development of the Border States.
In War
- To Develop & Maintain Roads to Keep Line of Control through in Original Sectors and Re-Deployed Sectors.
- To Execute Addl Tasks as laid down by the Govt Contributing to the War Effort.
Controlling Ministry
- BRO works under Ministry of Defence