TOPIC: GS 3 Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Recovery takes more than reforms
What is the news?
- The most recent growth estimates of the National Statistical Office show that after a steep contraction in the first quarter of last year, growth accelerated steadily afterwards.
- The assured a recovery had not experienced the second wave of the pandemic that came with the current financial year.
- Overlapping State level lockdowns that started in have now lasted for almost as long the nationwide lockdown of 2020
- There is no gainsaying lockdown impact on the economy.
- Output may well have contracted in the beginning of this year.
- Recovery will eventually come to be W- shaped rather than Vshaped.
Meaning of reforms
- The issue of economic recovery was raised in public, asserted that the economy will recover due to the reforms planned or already implemented by the government
- Since 1991, the term ‘reforms’ has been used to mean both policy changes that remove restrictions on private sector activity in certain areas
- It is also had those to increase profits in existing lines of production.
Recent examples
- Allowing greater private sector participation in defence as part of the Atmanirbhar Bharat Abhiyaan launched in 2020
- Significant lowering of corporate tax in 2019
However, more reforms may be ineffective is purring recovery.
- Currently for the private sector entry into a new area or undertaking investment in an existing activity may not appear profitable
- It is given the expectation of the state of the economy in the near future upon which their revenue will depend.
- The peak of the epidemic had been crossed, the government reverted to its principal macroeconomic preoccupation
- It namely had fiscal consolidation or the paring down of the fiscal deficit
- Government raised its budgeted expenditure by less than 1% in the last Budget.
Case Study
- Data from the Centre for Monitoring Indian Economy reported that unemployment has risen in, indicating slack demand for output.
- With this knowledge, the private sector is unlikely to respond with to liberalizing reforms.
Public spending is the key
- Raising public spending is the only game in town left to the policymaker serious about bringing on a recovery.
- India’s public debt is low by comparison with the OECD countries, and debt financing remains an option.
- Even if money financing is adopted, it need not cause accelerating inflation as some predict.
- Studies do show that any economic expansion would be inflationary if the production of food does not respond adequately.
Way forward
The expansion is financed is less relevant for inflation at least in the near term. In any serious attempt at economic recovery, the focus must be on the food supply and not the money supply
Mains question
In any serious attempt at economic recovery, the focus must be on food supply and not money supply. Explain
Sources : https://www.thehindu.com/opinion/op-ed/recovery-takes-more-than-reforms/article34843199.ece
PRELIMS PUNCHERS
- Deepor Beel
It is located to the south-west of Guwahati city, in Kamrup Metropolitan district of Assam, India. It is a permanent freshwater lake, in a former channel of the Brahmaputra River, to the south of the main river. It is also called a wetland under the Ramsar Convention which has listed the lake in as a Ramsar Site for undertaking conservation measures on the basis of its biological and environmental importance.
Considered as one of the largest beels in the Brahmaputra valley of Lower Assam, it is categorised as representative of the wetland type under the Burma monsoon forest biogeographic region. While the beel and its lowland fringe are said to be under laid by recent alluvium consisting of clay, silt, sand and pebbles, the highlands immediately to the north and south of the beel are made up of gneisses and schists of the Archaean age.
- Ekambaranathar Temple
Ekambareswarar Temple is a Hindu temple dedicated to the deity Shiva, located in the town of Kanchipuram in Tamil Nadu, India. It is significant to the Hindu sect of Saivism as one of the temples associated with the five elements, the Pancha Bhoota Stalas, and specifically the element of earth, or Prithvi. Shiva is worshiped as Ekambareswarar or Ekambaranathar, and is represented by the lingam, with his idol referred to as Prithvi lingam.
The present masonry structure was built during the Chola dynasty in the 9th century, while later expansions are attributed to Vijayanagar rulers. The temple finds mention in the classical Tamil Sangam literature dated 300 BCE like Manimegalai and Perumpāṇāṟṟuppaṭai. Initially temple was built by Pallavas.
- The Litani River
It is an important water resource in southern Lebanon. The river rises in the fertile Beqaa Valley, west of Baalbek, and empties into the Mediterranean Sea north of Tyre. Litani River is the longest river in Lebanon and provides an average annual flow estimated at 920 million cubic meters. The waters of the Litani both originate and flow entirely within the borders of Lebanon. It provides a major source for water supply, irrigation and hydroelectricity both within Southern Lebanon, and the country as a whole.
After heading south parallel to the Syrian border, the course of the river bends dramatically westward. Near this bend, the Litani comes within five km of the Hasbani River.
- Ordnance Factory Board
It consisting of the Indian Ordnance Factories is a Government agency under the control of department of defence production (DDP) Ministry of Defence (MoD), Government of India. OFB is the world’s largest government-operated production organisation, and the oldest organisation in India. It is often called the “Fourth Arm of Defence”, and the “Force Behind the Armed Forces” of India. OFB is the 35th largest defence equipment manufacturer in the world, 2nd largest in Asia, and the largest in India.
It is engaged in research, development, production, testing, marketing and logistics of a product range in the areas of air, land and sea systems. OFB comprises forty-one ordnance factories, nine training institutes, three regional marketing centres and four regional controllerates of safety, which are spread all across the country.
Sources : https://www.thehindu.com/news/national/ofb-corporatisation-gets-cabinet-approval/article34833105.ece
PRELIMS QUESTIONS
- Consider the following statement with reference to Ekambareswarar temple
- Masonry structure was built during the Chola dynasty
- It’s later expansions of temple are attributed to Vijayanagar rulers
Select the correct statement using code given below.
(a). 1only (b) 2 only
(c). Both of them (d). None of the above
Answer : A
Ekambareswarar Temple is a Hindu temple dedicated to the deity Shiva, located in the town of Kanchipuram in Tamil Nadu, India. It is significant to the Hindu sect of Saivism as one of the temples associated with the five elements, the Pancha Bhoota Stalas, and specifically the element of earth, or Prithvi. Shiva is worshiped as Ekambareswarar or Ekambaranathar, and is represented by the lingam, with his idol referred to as Prithvi lingam.
The present masonry structure was built during the Chola dynasty in the 9th century, while later expansions are attributed to Vijayanagar rulers. The temple finds mention in the classical Tamil Sangam literature dated 300 BCE like Manimegalai and Perumpāṇāṟṟuppaṭai. Initially temple was built by Pallavas.
- River Litani is sometimes in news, is located in
- Jordan
- Turkey
- Isreal
- Lebanon
Answer : D
It is an important water resource in southern Lebanon. The river rises in the fertile Beqaa Valley, west of Baalbek, and empties into the Mediterranean Sea north of Tyre. Litani River is the longest river in Lebanon and provides an average annual flow estimated at 920 million cubic meters. The waters of the Litani both originate and flow entirely within the borders of Lebanon. It provides a major source for water supply, irrigation and hydroelectricity both within Southern Lebanon, and the country as a whole.
After heading south parallel to the Syrian border, the course of the river bends dramatically westward. Near this bend, the Litani comes within five km of the Hasbani River.