Latest News
Mar 07, 2022
WILL SANCTIONS AGAINST RUSSIA IMPACT LONG-TERM SUPPLY OF WHEAT, OIL, METALS AND OTHER GOODS?
Sanctions against Russia and its impact on supply of wheat, oil, metals and other goods.
Pakistan Status in FATF
Digital Economic Advancement in India
What Does US Want from India?
Status of Medical Sector in India
- Commodity prices have gone into a tizzy after Russian forces invaded Ukraine last month.
- The Bloomberg Commodity Index recorded its biggest weekly rally since 1960 last week with gains of 13%.
- Many fear that a drop in the supply of essential commodities such as oil, metals, and agricultural goods could negatively affect the global economy that is still recovering from the pandemic.
- The price of Brent crude oil on Thursday almost hit $120 per barrel, the highest in a decade.
- Disruptions: The military conflict between Russia and Ukraine has led to disruptions in the global commodity supply chain.
- Russian products not favoured: Commodity traders have been unwilling to purchase oil and other commodities from Russia fearing that they may be unable to sell them in the global market due to sanctions imposed by Western governments. The United States and European Union have been taking measures to debilitate Russia’s economy by cutting Russian banks off the SWIFT payment messaging system and freezing Russia’s foreign reserves.
- Transport: There are also logistical difficulties in transporting commodities from war zones. Exports from the region have already been affected and are likely to be further hit going forward, and this risk has been priced in by traders.
- Energy: It should be noted that in 2020 Russia produced about 12% of the world’s oil and about 16% of the world’s natural gas.
- Ukraine: Supplies about 12% of global wheat exports and 13% of global corn exports. In fact, the country supplied almost 90% of China’s corn imports in 2019. Disruptions in such significant commodity supplies can affect global commodity prices.
- Palladium: It also produced nearly half of the world’s palladium (the shiny white metal which is a critical component in catalytic converters — a part of a car’s exhaust system that controls emissions, for example).
- Demand-supply mismatch:
- At the same time, suppliers in other parts of the world have failed to increase their production to make up for the loss of output in Russia and Ukraine.
- The Organisation of the Petroleum Exporting Countries (OPEC), for instance, has made no effort to increase its output despite repeated calls by various world leaders to ensure energy security.
- Supply chain: Commodity prices have risen significantly since at least 2021 when lockdowns were slowly lifted by governments and economies were allowed to open up. It should be noted that, owing to various frictions in the global economy, it took a while for supply chains disrupted by lockdowns to return to normalcy.
- The supply of goods was limited and this scarcity was reflected in the form of higher prices.
- Policies: Some analysts have also blamed policies in several countries to replace fossil fuels with renewable energy as a possible reason behind the increase in commodity prices. The emphasis on renewable energy has discouraged investors from investing in the production of traditional fossil fuels.
- Demand-pull inflation: Meanwhile, the pandemic also witnessed major global central banks such as the U.S. The Federal Reserve and the European Central Bank are injecting massive amounts of fresh money into their economies. This led to an increase in the demand for all goods and services and caused their prices to rise. In short, too much money printed by central banks chasing too few goods has led to a rapid increase in commodity prices.
- Statistics: Global commodity prices, as measured by the Bloomberg Commodity Index, have risen by over 60% since the start of 2021. Meanwhile, the price of an essential commodity like oil has risen even more.
- It should be noted that cutting off Russia’s economy from the rest of the world can affect not just Russia but also affect businesses and consumers that depend on the Russian economy.
- Countries like Germany, for instance, rely heavily on energy supplies coming from Russia. This could be why the West is yet to impose sanctions on Russia’s export of crude oil and natural gas. It is not just Russia that will suffer from the war and sanctions but also the rest of the world.
- Also, as the global economy struggles to grow while prices rise fast, analysts have warned about the risk of stagflation, which is marked by high price inflation and low growth.
Pakistan Status in FATF
- Pakistan has been on the grey list of the Paris-based Financial Action Task Force (FATF) since June 2018 for failing to check money laundering, leading to terror financing, and was given a plan of action to complete it by October 2019.
- Since then, the country continues to be on that list due to its failure to comply with the FATF mandates.
- However, Pakistan’s robust progress on its global commitments to fight financial crimes was appreciated at the concluding session of its hybrid plenary meeting, which noted that Pakistan had completed 26 of the 27 action items in its 2018 action plan of the FATF and of the seven action items of the 2021 action plan of the watchdog’s Asia Pacific Group on Money Laundering (APG).
- The plenary noted that since June 2018 — when Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its anti-money laundering/combating the financing of terrorism (AML/CFT) regime and to address its strategic counter-terrorist financing-related deficiencies — the country’s continued political commitment had led to significant progress across a comprehensive CFT action plan.
- The FATF encouraged Pakistan to continue making progress to address, as soon as possible, the one remaining item by continuing to demonstrate that terror financing investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups.
- Since June 2021, Pakistan has taken swift steps towards improving its AML/CFT regime and completed six of the seven action items ahead of any relevant deadlines expiring, including by demonstrating that it is enhancing the impact of sanctions by nominating individuals and entities for UN designation and restraining and confiscating proceeds of crime in line with Pakistan’s risk profile.
- Officials said Pakistan now aimed to fully comply with the 2021 action plan on anti-money laundering and combating terror financing by the end of January 2023.
- The FATF is an inter-governmental body established in 1989 to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- The FATF currently has 39 members including two regional organisations — the European Commission and Gulf Cooperation Council. India is a member of the FATF consultations and its Asia Pacific Group.
- The objectives of FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- FATF is a "policy-making body" that works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. FATF monitors progress in implementing its Recommendations through "peer reviews" ("mutual evaluations") of member countries.
- Since 2000, FATF has maintained the FATF blacklist (formally called the "Call for action") and the FATF greylist (formally called the "Other monitored jurisdictions"). The blacklist has led financial institutions to shift resources and services away from the listed. This in turn has motivated domestic economic and political actors in the listed countries to pressure their governments to introduce regulations that are compliant with the FATF.
- The FATF has been characterized as effective in shifting laws and regulations to combat illicit financial flows. FATF incentivizes stricter regulations through its public noncomplier list, which leads financial institutions to shift resources and services away from the countries on the blacklist. This in turn motivates domestic economic and political actors in the listed countries to pressure their governments to introduce regulations that are compliant with the FATF.
- The effect of the FATF Blacklist has been significant, and arguably has proven more important in international efforts against money laundering than has the FATF Recommendations. While, under international law, the FATF Blacklist carried with it no formal sanction, in reality, a jurisdiction placed on the FATF Blacklist often found itself under intense financial pressure.
- FATF has made it difficult for non-governmental organisations (NGOs) in countries to access funds to aid in relief situations due to strict FATF criteria. FATF criteria have mainly impacted NGOs that are located in Middle Eastern and terror-ridden countries. Some argue that the FATF Recommendations do not specifically set out restrictions for NGOs which often results in them going against FATF Recommendation.
Digital Economic Advancement in India
- The trio of Jandhan, Aadhar, and Mobile access has made digital payments a reality. It is evident by the increasing volumes, the wider usage seen across Indian markets, and the consumer socio-economic segments; and most importantly, it cuts across the literacy spectrum.
- The speed of technological and digital advancement, if not matched with adequate safety aspects, could become a supervisory burden for the global financial regulators.
- The regulators will need to balance the positive outcomes of the emerging technologies, alongside the negative impact, especially if these technologies have a bearing on the markets, and can influence the way fiscal and monetary markets operate.
- The regulators also have a role in ensuring that adequate consumer protection guard-rails are in place; these are equally important as developmental policies for larger socio-economic positive outcomes.
- The speed of technological and digital advancement, if not matched with adequate safety aspects, could become a supervisory burden for the global financial regulators.
- Therefore, it is natural for regulators to have genuine worries around TechFin practices, antitrust issues, cybersecurity risks, too-big-to-fail issues, and challenges around data privacy. A core basis of financial stability is consumers’ trust and their confidence in the stability and resilience of the system.
- “We have also seen that cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value; that they are akin to Ponzi schemes, and may be even be worse,” Dr T. Rabi Sankar, (Deputy Governor, RBI) said in a recent speech.
- One of the key regulatory concerns is anything that could become a national security issue. In this aspect, the regulators fear the misuse of crypto currencies using its anonymity for weakening its anti-money laundering efforts. India, being a part of the Financial Action Task Force (FATF), has to abide by its standards that seek global cooperation between sovereign member nations.
- FATF, in its 2021 guidance note on Virtual Assets (like crypto), raised a red flag— “This Guidance outlines the need for countries and VASPs, and other entities involved in VA activities, to understand the money laundering and terrorist financing (ML/TF) risks associated with VA activities and to take appropriate mitigating measures to address those risks.” The crypto industry has not yet been able to address these concerns with any concrete measures.
- The regulators fear the misuse of crypto currencies using its anonymity for weakening its anti-money laundering efforts.
- However, if a large investor base knowingly invests in cryptos and loses money (irrespective of how small those investments individually are), the regulator or government gets blamed for not doing enough!
- The official stand on digital assets has changed considerably over the recent times, from RBI’s warning to the public investing in crypto in December 2013, RBI prohibiting its regulated entities in dealing with virtual currencies (in April 2018), the Supreme Court of India overruling RBI’s April 2018 circular, to the upcoming bill for Parliamentary approval. “The Cryptocurrency and Regulation of Official Digital Currency Bill of 2021”, actually has missed its twists and turns in the Parliamentary debate, and instead is playing it out in the form of media statements and speeches, and undue public speculation.
- With over 10,000 cryptocurrencies in global circulation, and most of them with high volatility of value and trading volumes, global regulators will need to boost their investor safeguard measures, until they either ban them or regulate them tightly.
- Technically, there is neither a ban on the use of cryptocurrencies (or crypto assets) in India, nor a regulation that govern their actual usage.
- The crypto bill which has been touted for long, and yet is pending across multiple sessions of the Parliament, is expected to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”.
- This bill will also ban all private cryptocurrencies, except for allowing “for certain exceptions to promote the underlying technology of cryptocurrency and its uses”.
- India recently decided to tax digital assets like cryptocurrencies and non-fungible tokens (NFT), a 30-percent tax on transfer of such assets as well as a 1-percent tax deduction at source (TDS) on every transaction. The move has triggered a debate on the legality of such assets and whether taxes on them have legitimized them. The fact is that it is not illegal now to have crypto assets, however, taxing them does not necessarily make them legal either.
- It is also important to note the observation that there is no official statistics on the actual crypto investments of individual investors, and therefore, a policy narrative cannot be formed solely on the basis of the arguments claiming “consumer choice of crypto products”. However, this proposed TDS on digital assets would help in officially collating data on its usage and thereby would form as input to the policy and regulatory framework.
- Cryptocurrencies are decentralized systems where transactions are authenticated by participants themselves by consensus. They are designed to bypass the financial system and all its controls. They cannot be traced or confiscated or frozen by governments. They are anonymous—transactions are verified, but not the purposes or counterparties of transactions.
- Even in the Union Budget announced recently, it was made clear that the RBI would launch India’s Digital Rupee in FY 2023. The above RBI stand has the argument that the regulator would want to know the purpose of digital-asset transactions, and not just the parties involved in the transaction.
- One of the arguments floating in the tech world is that the digital rupee may not use blockchain for this rationale: A blockchain is considered to be a ‘permission-less network’, with multiple nodes that verify transactions.
- The RBI would want to be in control of the digital rupee, which would then need RBI as the sole-validator of transactions. That would make the digital rupee concept a “permissioned” one, which is anti-blockchain ideology.
- To make the digital rupee available to the citizens, the RBI will have to rope in more nodes for handling the transaction volumes. Without this, the digital rupee could remain restricted between the RBI and the banks, which does not solve anything!
- This crypto policy and regulation debate has seen surges of overt-optimism as well as cynical suspicions. It has seen exuberance to develop a law which by now has supposedly seen many changes in its draft version, and never been placed in the public domain for any feedback. Hopefully, this topic of ‘crypto-legality’ will be put to rest with a policy decision soon.
What Does US Want from India?
- The rank ordering of the U.S. and Indian preferences regarding arms vendors falls under two different Indian foreign and defence policy paths: Strategic autonomy and partnership with the US.
- The model demonstrates that in both scenarios the US would prefer Indian vendors to develop indigenous weapons production capability over buying weapons from Russia.
- It underscores the preference to lessen the continued dependence on Russian-made military capability. Expanding domestic production capacity emerges even if the US becomes a strategic partner.
- Indigenous weapons development in India may be the consensus outcome of US and India regardless of Indian strategy.
- The preference ordering makes five simple assumptions, two theoretical and three empirical.
- First, that all preferences are complete, i.e., an actor can rank the different preferences as greater than [>], less than [<], equal to [=]. Variations of these may include combinations like greater than and equal to [≥], less than and equal to [≤].
- Second, all preferences are transitive, i.e., if an actor prefers A over B and B over C, then the actor prefers A over C.
- The first empirical assumption is: One of the largest suppliers of weapons in the world, China, is excluded from the available choices of US and India. This assumption is defensible because China is currently the primary geostrategic competitor of the US, and China has fought a war and is embroiled in several militarised inter-state disputes with India.
- Second, India’s overall foreign and national-security strategy remains open to flexible partnerships with different states or a closer partnership with the Quadrilateral Security Dialogue (Australia, India, Japan, and US).
- Third, the US and India are their own preferred vendors of weapons under all scenarios. This assumption is consistent with US’ national security policy and the fact that US remains the world’s largest arms exporter. It is also consistent with India’s recent national security policy to develop its own military-industrial complex, for which it is has even cancelled orders from foreign vendors, ramped up production and induction of indigenous weapons systems, and opened up defence manufacturing to the domestic private sector.
- Active US-Indian military cooperation expanded in 1991 following the economic liberalisation of India when American Lt. General Claude C. Kicklighter, then commander of the United States Army Pacific, proposed army-to-army cooperation.
- This cooperation further expanded in the mid-1990s under an early Indian center-right coalition, and in 2001 India offered the United States military facilities within its territory for offensive operations in Afghanistan.
- US Defense Secretary and his Indian counterpart signed a "New Framework for India-US Defense" in 2005 under the Indian United Progressive Alliance government, increasing cooperation regarding military relations, defense industry and technology sharing, and the establishment of a "Framework on maritime security cooperation."
- India and the United States conducted dozens of joint military exercises in the ensuing years before the development of the Quadrilateral dialogue, interpreted as an effort to "contain" China.
- Indian political commentator Brahma Chellaney referred to the emerging Quadrilateral Security Dialogue between the United States, Japan, Australia and India as part of a new "Great Game" in Asia, and Indian diplomat M. K. Rasgotra has maintained that American efforts to shape security pacts in Asia will result not in an "Asian Century," but rather in an "American Century in Asia."
- The Trilateral Strategic Dialogue (TSD) was a series of trilateral meetings between the United States, Japan, and Australia. The TSD originally convened at senior officials' level in 2002, then was upgraded to ministerial level in 2005. The United States expected regional allies to help facilitate evolving US global strategy to fight against terrorism and nuclear proliferation. In return, Japan and Australia expected benefits including continued US strategic involvement and the maintenance of strategic guarantees in the region.
- During the visit of Prime Minister to the U.S. in June 2016, the U.S. recognised India as a "Major Defence Partner", which commits the U.S. to facilitate technology sharing with India to a level commensurate with that of its closest allies and partners, and industry collaboration for defence co-production and co-development.
- With the foundational agreements, LEMOA, COMCASA, and BECA, in place and India gaining entry into MTCR the governments are discussing the steps to be taken to understand their full potential for mutual benefit.
- The long pending acquisition of 30 Sea Guardian unmanned aircraft worth approximately USD 3 billion for the Indian Navy, Indian Army and the Indian Air Force brings various elements of this strategic partnership.
- India enjoys unique position in peninsula in south Asia with nearly 1570 km of land border and maritime boundary is around more than 7000 km. Out of that more than half of boundary is shared by the two hostile neighbours China& Pakistan with whom India has border disputes.
- Prolonged standoff in eastern Ladakh and subsequent action for disengagement between India army and PLA along LAC and relentless efforts by rogue neighbour for pushing terrorist and dropping arms and ammunition into new union territory of Jammu-Kashmir either through cease fire violation or using other means viz tunnels, drones etc are glaring examples.
- The nefarious designs of both these neighbours further embolden the preview that India in coming years will have to fight a very brief, highly technology-oriented utilizing multiple new contours and 2.5 front hybrid war with these two adversaries.
- Further Digital world especially social networking, Fake WhatsApp groups, various tool kits for inciting mobs both by external and internal forces has compounded the threat to national security in many ways.
- By indigenization we mean the capability of developing and producing any defence equipment within the country for dual purposes that are for self-reliance and for reducing fiscal deficit.
- To reduce over dependence on foreign nations the then government at the centre changed the Indian approach from licence production to production based indigenous design and subsequently followed by co development co production with foreign partners including the then USSR (now Russia), Israel and France etc. So, it pumped resources to encourage Research and Development (R&D).
- Indigenization is also essential from point of view of obtaining strategic capability, security imperative and also for employment generation. Because self-sufficient and self-reliant defence industry will place India among the top global powers.
- There will be a reduction in fiscal deficit. Employment will be generated and helps India to become global power.
- National Security will be provided against its porous borders and hostile neighbours. Fire of nationalism and patriotism will be ignited with the strong sense of integrity and sovereignty among the Indian forces.
- It keeps intact the technological advancement and expertise and encourages spin-off technologies and innovation that often stem for it.
- Government started with the concept of make in India to promote indigenous manufacturing in defence sector.
- To augment indigenisation and to encourage private players’ participation, the defence procurement procedure 2013(DPP2013) was amended. New clause indigenous design and manufactured was added as the most preferred way of defence acquisition.
- To encourage the private players participation and to expand the defence industry base, the present Government removed the restriction on annual capacity for grant of licence in defence sector and also established on line eBiz portal. It also issued vendor development guide lines for their benefits.
- To encourage foreign investment, government enhanced Foreign Investment Limit (FDI) to 74%and in certain exceptional cases even up to the tune of 100 percent but following permission from Government.
- To encourage innovative R&D in private industry, the government has ear marked separate funds known as technology development funds to the tune of Rs.100crore. Under this, projects up to ten crores can be sanctioned to private industry. Till date 25 industries have availed themselves of the benefits of this scheme.
- For promoting manufacturing based on indigenous design and development, bold and path breaking decisions concerning restriction on import of 101 defence items has been taken. These items include high tech weapon systems, artillery guns assault rifles, covets, sonar systems, transport air crafts, radars and many more.
- One of the revolutionary steps for indigenous development and manufacturing was keeping the provision of the special budget ‘for domestic capital procurement’ to the tune of around fifty-two thousand crore rupees in defence budget for the year 2020-2021. This initiative was widely welcomed by Confederation of Indian Industry (CII) and Federation of Indian Commercial and Industries (FICI).
- The government has also unveiled a new policy concerning the export of defence items to friendly nations. India has also set an export target of 5 billion US$ by the year 2025. It is worth mentioning here that the ecosystem created by Government over a period of seven years has certainly inspired multiple players to participate not only in defence manufacturing but also for creation of strong R&D base in their premises for in house design and development.
- The above presentations show that the US remains its own preferred vendor regardless of what strategy India pursues, while India remains its own preferred vendor regardless of its strategy. So, the US remains indifferent to India and NATO member countries regardless of India’s strategy.
- However, India is indifferent to the US and NATO members if it pursues alignment with the US and the Quad, while India remains indifferent to the US, NATO members, and Russia if it purses strategic autonomy. India is always its own most preferred vendor. Thus, in both scenarios of Indian strategy, India as a vendor is more preferable both to the US and India over Russia.
- The Quadrilateral Security Dialogue (QSD), colloquially the Quad or QUAD, is a strategic security dialogue between the United States, India, Japan and Australia that is maintained by talks between member countries.
- The dialogue was initiated in 2007 by Japanese Prime Minister Shinzo Abe, with the support of U.S. Vice President Dick Cheney, Australian Prime Minister John Howard, and Indian Prime Minister Manmohan Singh.
- The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
- The diplomatic and military arrangement was widely viewed as a response to increased Chinese economic and military power, and the Chinese government responded to the Quadrilateral dialogue by issuing formal diplomatic protests to its members, calling it "Asian NATO".
- In a joint statement in March 2021, "The Spirit of the Quad," the Quad members described "a shared vision for a Free and Open Indo-Pacific," and a "rules-based maritime order in the East and South China Seas," which the Quad members state are needed to counter Chinese maritime claims. The Quad pledged to respond to COVID-19, and held a first Quad Plus meeting that included representatives from New Zealand, South Korea and Vietnam to work on its response to it.
Status of Medical Sector in India
- Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.
- The healthcare market can increase three-fold to Rs. 8.6 trillion (US$ 133.44 billion) by 2022. In Budget 2021, India’s public expenditure on healthcare stood at 1.2% as a percentage of the GDP.
- A growing middle-class, coupled with a rising burden of new diseases, are boosting the demand for health insurance coverage. With increasing demand for affordable and quality healthcare, penetration of health insurance is poised to expand in the coming years.
- According to India Tourism Statistics at a Glance 2020 report, ~697,300 foreign tourists came for medical treatment in India in FY19. India has been ranked 10th in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association.
- The hospital industry in India is forecast to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%. The Government of India is planning to increase public health spending to 2.5% of the country's GDP by 2025.
- The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%.
- 100% FDI is allowed under the automatic route for greenfield projects. For investments in brownfield projects, up to 100% FDI is permitted under the government route.
- There is no uniformity in selecting students to medical colleges. A common entrance test at all India level is required to ensure this uniformity. No uniform quality standards of graduating doctors across India. There should be an exit test, that will bring parity to standards graduating from all medical colleges across India.
- Lack of skilled teachers has afflicted all the educational paradigms of India. In the medical field, this issue is more critical. Here teachers are selected based on academic knowledge rather than clinical experience and adequate training is not imparted to them. Inadequate salary to teachers is also the main problem that makes this profession unattractive.
- India has been struggling with deficient infrastructure in the form of lack of well-equipped medical institutes for quite a while now. To add to it, the rate of building such medical teaching or training facilities remains less as compared to the need of the hour.
- One of the most pressing problems in India remains a severe shortage of trained manpower in the medical stream, this includes doctors, nurses, paramedics and primary healthcare workers. The situation remains worrisome in rural areas, where almost 66 per cent of India’s population resides.
- The doctor-to-patient ratio remains abysmally low, which is merely 0.7 doctors per 1,000 people. This is compared to the World Health Organisation (WHO) average of 2.5 doctors per 1,000 people. Improving this situation continues to remain a long-term process.
- Even prior to the outbreak of the Covid-19 pandemic, healthcare facilities had been feeling the strain due to unmanageable patient-load. Moreover, serving a population of 1.4 billion remains a Herculean task in itself when it comes to suitably managing healthcare facilities.
- There is a need to adopt technology wherever possible to streamline the operational and clinical processes for healthcare facilities in order to manage efficient patient flow.
- Rural areas in India have a shortage of medical professionals. 74% of doctors are in urban areas that serve the other 28% of the population. This is a major issue for rural access to healthcare. The lack of human resources causes citizens to resort to fraudulent or ignorant providers.
- Doctors tend not to work in rural areas due to insufficient housing, healthcare, education for children, drinking water, electricity, roads and transportation. Additionally, there exists a shortage of infrastructure for health services in rural areas.
- There is often a lack of accountability and cooperation in healthcare departments in urban areas. It is difficult to pinpoint an establishment responsible for providing urban health services, compared to in rural areas where the responsibility lies with the district administration. Additionally, health inequalities arise in urban areas due to difficulties in residence, socioeconomic status, and discrimination against unlisted slums.
- Out-of-pocket private payments make up 75% of the total expenditure on healthcare. Only one fifth of healthcare is financed publicly. This is in stark contrast to most other countries of the world. According to the World Health Organization in 2007, India ranked 184 out of 191 countries in the amount of public expenditure spent on healthcare out of total GDP. In fact, public spending stagnated from 0.9% to 1.2% of total GDP in 1990 to 2010.
- While public hospitals offer free health services, these facilities are understaffed, poorly equipped, and located mainly in urban areas. It is a known fact that accessible and affordable healthcare in the public sector can considerably reduce the rise in dependence on private institutions.
- The government of India has a Twelfth Plan to expand the National Rural Health Mission to the entire country, known as the National Health Mission. Community based health insurance can assist in providing services to areas with disadvantaged populations.
- The National Rural Health Mission (NRHM) was launched in April 2005 by the Government of India. The NRHM has outreach strategies for disadvantaged societies in isolated areas. The goal of the NRHM is to provide effective healthcare to rural people with a focus on 18 states with poor public health indicators and/or weak infrastructure.
- The National Urban Health Mission as a sub-mission of National Health Mission was approved by the cabinet on 1 May 2013.As urban health professionals are often specialized, current urban healthcare consists of secondary and tertiary, but not primary care. NUHM has appointed three tiers that need improvement: Community level (including outreach programs), Urban Health Center level (including infrastructure and improving existing health systems), and Secondary/Tertiary level (Public-Private Partnerships).
- Pradhan Mantri Jan Arogya Yojana (PM-JE) is an initiative to ensure health coverage for the poor and weaker population in India to ensure access to healthcare and good quality hospital services without facing financial difficulty.
- PM-JAY Provides insurance cover up to Rs 5 lakh per annum to the 100 million families in India for secondary and tertiary hospitalization. For transparency, the government made an online portal (Mera PmJay) to check eligibility for PMJAY.
- Health care service includes follow-up care, day-care surgeries, pre- and post-hospitalization, hospitalization expenses, expense benefits and new-born child/children services.
- Fair Price Shops aim to reduce the costs of medicines, drugs, implants, prosthetics, and orthopaedic devices. The Fair Price program creates a bidding system for cheaper prices of medications between drugstores and allows the store with the greatest discount to sell the drug.
- The largest segment of the PPP initiative is the tax-financed program, Rashtriya Swasthya Bima Yojana (RSBY). The scheme is financed 75% by the central government and 25% by the state government. This program aims to reduce medical out-of-pocket costs for hospital treatment and visits by reimbursing those that live below the poverty line. RSBY covers a maximum of 30,000 rupees in hospital expenses, including pre-existing conditions for up to five members in a family.
- The Ministry of Health and Family Welfare (“MoHFW”) is responsible for conceiving the idea of the National Digital Health Mission (“NDHM”). This visionary project of the Government of India, stemming from the National Health Policy, 2017 (“National Health Policy”) intends to digitise the entire healthcare ecosystem of India.
- What primarily ails the healthcare system is that there has been a general lack of focus on the vertical from the government. For years now, knee-jerk reaction work has been being witnessed towards the improvement of quality of service.
- The medical profession is unique as it requires an amount of social responsibility and societal empathy. Newly graduated doctors are unaware or indifferent to their social responsibility. Colleges play a major role in infusing young students with an empathetic attitude towards society.
- There is an urgency to make healthcare service and service providers more transparent operationally. This will help ensure people and processes can be made easily accountable to provide better healthcare services. It is only then that the healthcare system can breathe a bit easier.
- Petroglyphs are images drawn by removing part of a rock surface by incising, picking, carving or abrading. The petroglyphs also called Katal Shilpa locally are present in and around the Ratnagiri area spread across open spaces on the outskirts of villages.
- They are believed to be 12,000 years old and Ratnagiri and Rajapur have more than 1,000 petroglyphs across 60 sites.
- These petroglyphs vary in shape and size. The carvings cover the shapes of human figures, birds, animals, geometric forms and composite creatures.
- The size of these petroglyphs also varies from site to site. Some of these are single and small in size while some come in clusters. An elephant carved on the stone surface is more or less a life-size depiction of an animal.
- These carvings could be contemporaneous to other petroglyph sites in India that date back to the Middle and Later Stone Age. The period in history preceding the Indus Valley Civilisation, which is dated to about 5,000 BCE, is a rich one of historical discovery, with evidence of stone tool cultures scattered across the subcontinent.
- Prominent petroglyph and rock art sites in India that could be contemporary to this period are the Bhimbetka rock shelters in Madhya Pradesh, rock carvings in Mirzapur in Uttar Pradesh, petroglyphs from the Tindivanam and Viluppuram districts in Tamil Nadu and Unakoti in Tripura.
- The carvings on laterite stone are what make the petroglyphs in this region unique, as the carvings discovered in other sites around India are on granite and sandstone. More recently, petroglyphs of a similar nature, though not in the same numbers, have been discovered in Sindhudurg district, and near the banks of the Kushavati river in Goa. Both are south of Ratnagiri, hinting at a pattern of migration.
- This is not yet evidence of a civilisation, as there is no evidence of writing, agricultural or economic activity, or of living arrangements or settlements. It’s more likely, he says, that these were nomadic tribes, with the preponderant depiction of animals and aquatic life suggesting that they were hunter-gatherer tribes.
- There are no actual scenes depicting the hunting of animals, unlike the carvings in Bhimbetka and Mirzapur. In Maharashtra’s cultural records, there is no evidence of any art being practised until about 3,000 BCE, which is when we find the first mention of painted pots and clay figurines. That’s why these petroglyphs are a significant find for a better understanding of the history of this region and its artistic traditions.
- It could be argued that the very content of the petroglyph's points to their relevance. For starters, some of them depict rhinoceroses and hippopotami, two species that were never thought to be prevalent in this part of India. The carvings, however, suggest that the Konkan may have once been a lot like the rainforests where these animals are typically found.
- Some are incredible life-size depictions of large animals such as elephants and tigers. Most of the art from the later medieval period is religious in nature, and it is quite likely that such a significant investment in art points to some form of religious belief or religious system.
- Many of the petroglyphs are accompanied by abstract motifs and symbols, the meaning of which is not yet known. The most intriguing of these is the motif of two legs, squatting and spread outward. The symbol is cut off at the hip and is usually deployed as a side motif to the larger, more abstract rock reliefs.
- Madh Fort is a small fort in northern Mumbai, India situated at Madh Island. It was built by the Portuguese in Portuguese occupied India.
- They lost it during the war against the Maratha empire when the Maratha Empire captured it in February 1739.
- The British occupied Salsette Island, Thana Fort, Fort Versova, and the island fort of Karanja in 1774.
- It is secluded and difficult to reach, about 15 kilometers (9 mi) from Malad and is the last stop on Route 271 of BEST bus service or via Versova by ferry boat.
- It is situated south of Madh Village. It is around a 2 km walk from Madh Mandir bus stop. The fort was built by the Portuguese, as a watchtower in the 17th century. It offers a strategic view of the coastline and guards the Marve Creek. Its external façade is intact but internally it is dilapidated.
- It is under control of the Indian Air Force as it is located close to an Indian Air Force base and permission is needed for accessing it. Madh Fort is not open to the public, and it is surrounded by local fishermen communities.
- A World Heritage Site is a landmark or area with legal protection by an international convention administered by the United Nations Educational, Scientific and Cultural Organization (UNESCO).
- World Heritage Sites are designated by UNESCO for having cultural, historical, scientific or other form of significance.
- A World Heritage Site is a place or environment of “great significance” or meaning to mankind.
- It may be a living urban city or a rural settlement, a natural landscape such as an underground cave, forest or ocean, an archeological site such as a buried goldmine or a geological phenomenon.
- Represents a masterpiece of human creative genius.
- Exhibits an important interchange of human values over a span of time, or within a cultural area of the world, on developments in architecture or technology, monumental art, town-planning or landscape design.
- Bears a unique or exceptional testimony to a cultural tradition or to a civilisation which is living or which has disappeared.
- An outstanding example of a type of building, architectural, or technological ensemble or landscape which illustrates a significant stage in human history.
- An outstanding example of a traditional human settlement, land-use or sea use, which is representative of a culture or human interaction with the environment, especially when it has become vulnerable under the impact of irreversible change.
- It is directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance.
- The Indian Constitution casts a responsibility on the State to protect and conserve heritage.
- Article 49 states, “It shall be the obligation of the State to protect every monument or place or object of artistic or historic interest, (declared by or under law made by Parliament) to be of national importance, from spoilation, disfigurement, destruction, removal, disposal or export, as the case may be.”
- Article 51 A (f) widens the responsibility and directs every citizen to contribute to heritage preservation. It states: “It shall be the duty of every citizen of India to value and preserve the rich heritage of our composite culture."
- Article 51 A (g) "to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures.”
- Brings international attention to the need for the preservation and conservation of the site.
- Brings tourism to the site ensuring economic benefits.
- UNESCO provides funds for restoration, preservation, and training, if required.
- Promotes close ties with the United Nations and provides them with prestige and support.
- Enables access to global project management resources.
- Facilitates creating partnerships between government, the private sector, and NGOs to achieve conservation goals.
- Site becomes protected under the Geneva Convention against destruction or misuse during wartime.
- The Ancient Monuments and Archaeological Sites and Remains Act 1958 provides for the preservation of ancient and historical monuments, archaeological sites and remains of national importance. It stipulates the regulation of archaeological excavations, the protection of sculptures, carvings, and other like objects.
- The National Monument Authority is charged with the grading and classifying of protected monuments and areas.
- A further step that the country took for heritage was when it became a signatory to UNESCO’s World Heritage Convention for the protection of global and national heritage. Besides, most states have also enacted heritage laws.
- The country has nationally protected monuments numbering around 3,650 that are looked after by the Archaeological Survey of India (ASI), functioning under the Ministry of Culture and state-protected monuments that are administered by the directorates of state archaeology.
- To further expand the effort towards heritage conservation, some major Indian cities have also stepped in to make their own contribution.
POSTED ON 07-03-2022 BY ADMIN
Next previous 
General Studies
Political Science and International Relations
Some Reference Essays
List of previous year essay topics (1997-2019)
IAS GOOGLE is googled by the team of Raja Sir’s Cracking IAS Academy. Sources include The Hindu, Indian Express, pib.nic.in, Down To Earth, Economic Times, Vigyan Prasar, AIR and the like. IAS GOOGLE has been prepared in pace with emerging UPSC Trends.