Contents

Mapping activities in the Census Organization: ..................................................................................................................... 1

Index ....................................................................................................................................................................................... 2
Difference between HRIDAY and PRASAD schemes ............................................................................................................... 8
Explained: The Transgender Persons (Protection of Rights) Bill, 2016................................................................................... 8
The FRDI Bill: Bail-In provisions explained .............................................................................................................................. 9
The Anti-Defection Law Explained ........................................................................................................................................ 11
Decoding the Code on Wages ............................................................................................................................................... 13
Role of Parliament in holding the government accountable ................................................................................................ 15
Doing Business in India ......................................................................................................................................................... 17
Committees in state legislatures .......................................................................................................................................... 19
Food Security in India ........................................................................................................................................................... 21
Resolving failure of financial firms: The FRDI Bill explained ................................................................................................. 24
Major Tribes in India: State-wise compilation ...................................................................................................................... 27
Racial Diversity in India ......................................................................................................................................................... 30
Characteristics of industry .................................................................................................................................................... 31
Hydrogen Bomb .................................................................................................................................................................... 33
Indias Cotton & Textile Industry : Main Points .............................................................................................................. 34
MCQs .................................................................................................................................................................................... 37

Mapping activities in the Census Organization:

The Census Organization of India is one of the largest producers of maps in the country.
A major shift in mapping census data however, was witnessed during Census of India 1961
when the first Census Atlas of 1961 was published in 1968.
In addition, the state and union territory atlases were also published as a sequel. The
tradition continued in the subsequent censuses also.
The preparation of administrative maps has been part of Census taking since 1872 when
first census was held in India non-synchronously.
Since 1881, synchronous census held throughout the country and continued
uninterruptedly.
The Census 2011 will be the fifteenth in the series since beginning and seventh since
Independence.
The organization prepares administrative unit maps at all levels i.e. State and Union
territories, districts, sub-districts (Tehsil /Taluk/ CD blocks/Police stations etc.), villages,
towns, wards and the enumeration Blocks.
Two kinds of maps are prepared by the organization.
1. Maps for use in Census (pre-census)
2. Maps for use in data dissemination (post-census)
These maps are used in each phases of census taking, i.e., House listing operation and
Population Enumeration.
During each census, the organization produces more than ten thousand administrative and
thematic maps, which are made available for the user agencies, planners, researchers,
 students and policy makers. Census Atlas, Administrative Atlas, Language Atlas,
Historical Atlas of India and of each state and Map profile are some of the prominent
decennial publications of the organization. Some of the nail views are given below.
Besides, maps are also published in special reports, monographs and publications like
Temples of Tamil Nadu. Regional Division of India at the National and State levels and
district maps showing village boundaries is one of the prestigious product of this
organization.
Updating of the GIS tools, which were introduced and adopted since late 1990s in the
Census Organization, has speeded up the process and enhanced the quality of the maps.
In 2001, Census GIS India was set up, which allowed generating thematic maps based on Census
data, on an interactive basis using GIS technology.
Index
What is the census?
When was the first census in India held
Why the census is important
Key Findings of the 2011 Census
What is the census?
Census is nothing but a process of collecting, compiling,
analyzing, evaluating, publishing and disseminating
statistical data regarding the population. It covers demographic, social and economic data and are
provided as of a particular date.
When was the first census in India held?
Census operations started in India long back during the period of the Maurya dynasty. It was
systematized during the years 1865 to 1872, though it has been conducted uninterruptedly from
the year 1881 being a trustworthy resource of information.
Why is the census important?
1. The Indian Census is the most credible source of information on Demography (Population
characteristics), Economic Activity, Literacy and Education, Housing & Household Amenities,
Urbanisation, Fertility and Mortality, Scheduled Castes and Scheduled Tribes, Language,
Religion, Migration, Disability and many other socio-cultural and demographic data since 1872.
Census 2011 is the 15th National Census of the Country. This is the only source of primary data
in the village , town and ward level, It provides valuable information for planning and formulation
policies for Central and the State Governments and is widely used by National and International
Agencies, scholars, business people, industrialists, and many more.
2. The delimitation/reservation of Constituencies Parliamentary/Assembly/Panchayats and
other Local Bodies is also done on the basis of the demographic data thrown up by the
Census. Census is the basis for reviewing the countrys progress in the past decade, monitoring
the ongoing Schemes of the Government and most importantly, plan for the future.
Key findings of 2011 census
 1. Population
Indias total
population
stands at 1.21
billion, which is
17.7 per cent
more than the
last decade, and
growth of
females was
higher than that
of males.
Indias
population grew
by 17.7 per cent
during 2001-11,
against 21.5 per
cent in the
previous
decade.
Among the
major states,
highest decadal
growth in
population has been recorded in Bihar (25.4 per cent) while 14 states and Union Territories
have recorded population growth above 20 per cent.

2. Rural and urban population

Altogether, 833.5 million persons live in rural area as per Census 2011, which was more
than two-third of the total population, while 377.1 million persons live in urban areas.
Urban proportion has gone up from 17.3 per cent in 1951 to 31.2 per cent in 2011.
Empowered Action Group (EAG) states have lower urban proportion (21.1 per cent) in
comparison to non-EAG states (39.7 per cent).
Highest proportion of urban population is in NCT Delhi (97.5 per cent). Top five states in
share of urban population are Goa (62.2 per cent), Mizoram (52.1 per cent), Tamil Nadu
(48.4 per cent), Kerala (47.7 per cent) and Maharashtra (45.2 per cent).
3. Literacy
 Literacy rate in India in 2011 has increased by 8 per cent to 73 per cent in comparison to
64.8 per cent in 2001.
While male literacy rate stands at 80.9 per cent which is 5.6 per cent more than the
previous census, the female literacy rate stands at 64.6 per cent an increase of 10.9 per
cent than 2001.
The highest increase took place in Dadra and Nagar Haveli by 18.6 points (from 57.6 per
cent to 76.2 per cent), Bihar by 14.8 points (from 47.0 per cent to 61.8 per cent), Tripura
by 14.0 points (from 73.2 per cent to 87.2 per cent)
Improvement in female literacy is higher than males in all states and UTs, except Mizoram
(where it is same in both males and females) during 2001-11.
The gap between literacy rate in urban and rural areas is steadily declining in every census.
Gender gap in literacy rate is steadily declining in every census. In Census 2011, the gap
stands at 16.3 points.
Top five states and UTs, where literacy rate is the highest, are Kerala (94 per cent),
Lakshadweep (91.8 per cent), Mizoram (91.3 per cent), Goa (88.7 per cent) and Tripura
(87.2).
The bottom five states and UTs are Bihar (61.8 per cent), Arunachal Pradesh (65.4 per
cent), Rajasthan (66.1 per cent), Jharkhand (66.4 per cent) and Andhra Pradesh (67 per
cent).

4. Density
The density of population in the country has also increased from 325 in 2001 to 382 in
2011 in per sq km. Among the major states, Bihar occupies the first position with a density
of 1106, surpassing West Bengal which occupied the first position during 2001.
Delhi (11,320) turns out to be the most densely inhabited followed by Chandigarh (9,258),
among all states and UTs, both in 2001 and 2011 Census. The minimum population
density works out in Arunachal Pradesh (17) for both 2001 and 2011 Census.
5. Sex ratio
The sex ratio of population in the country in 2011 stands at 940 female against 1000 males,
which is 10 per cent more than the last census when the number female per thousand male
stood at 933. Haryana has the dubious distinction of having the worst male-female ratio
among all states while Kerala fares the best.
 The number of females per 1000 males in Haryana in 2011 stands at 879 followed by
Jammu and Kashmir (889 female) and Punjab (895 females).
The other two worst-performing states in terms of skewed sex ration are Uttar Pradesh
(912 females) and Bihar (918 females).
Five top performing states in terms of sex ratio were Kerala (1,084 females), Tamil Nadu
(996), Andhra Pradesh (993), Chhattisgarh (991), Odisha (979).

6. Child population
Child population in the age of 0 to 6 years has seen an increase of 0.4 per cent to 164.5
million in 2011 from 163.8 million in 2001.
The child population (0-6) is almost stationary. In 17 states and UTs, the child population
has declined in 2011 compared to 2001.
With the declaration of sex ratio in the age group 0-6, the Census authorities tried to bring
out the recent changes in the society in its attitude and outlook towards the girl child. It
was also an indicator of the likely future trends of sex ratio in the population.
There has been a decline of 8 per cent in the sex ratio of 0-6 age group. In 2011, the child
sex ratio (0-6) stands at 919 female against 1000 male in comparison to 927 females in
2001.
Male child (0-6) population has increased whereas female child population has decreased
during 2001-11. Eight states, Jammu and Kashmir, Rajasthan, Uttar Pradesh, Bihar,
Jharkhand, Arunachal Pradesh, Mizoram, and Meghalaya have proportion of child
population more than 15 per cent.
The worst performing states in regard to sex ration in the age group of 0 to 6 years are
Haryana (834 females), Punjab (846), Jammu and Kashmir (862), Rajasthan (888) and
Gujarat (890).
The best performing states are Chhattisgarh (969), Kerala (964), Assam (962), West
Bengal (956) Jharkhand (948) and Karnataka (948).
7. SC/ST data
According to the Census, Scheduled Castes are notified in 31 states and UTs and Scheduled
Tribes in 30 states. There are altogether 1,241 individual ethnic groups, etc. notified as
SCs in different states and UTs.
 The number of individual ethnic groups, etc. notified as STs is 705. There has been some
changes in the list of SCs/STs in states and UTs during the last decade.
The SC population in India now stands at 201.4 million, which is 20 per cent more than
the last census. The ST population stands at 104.3 million in 2011 23.7 per cent more
than 2001.
8. Religious demographics The religious data on India Census 2011 was released by the
Government of India on 25 August 2015. Hindus are 79.8% (966.3 million), while Muslims are
14.23% (172.2 million) in India. For the first time, a No religion category was added in the
2011 census. 2.87 million Were classified as people belonging to No Religion in India in the
2011 census. 0.24% of Indias population of 1.21 billion. Given below is the decade-by-decade
religious composition of India till the 2011 census. There are six religions in India that have been
awarded National Minority status Muslims, Christians, Sikhs, Jains, Buddhists and Parsis.

9. Median marriage age The median age increased for men from 22.6 (2001) to 23.5 (2011)
and for women from 18.2 (2001) to 19.2 (2011)
The next part of the series will cover the 2011 Socio Economic Caste Census (SECC). You must
have read about it many times in the news, reading it on Civils Daily will make you clear as to
what its actually about!
Difference between HRIDAY and PRASAD schemes
12 cities in both HRIDAY and PRASAD
10 cities common in HRIDAY and PRASAD: Ajmer, Amritsar, Amravati, Dwaraka, Puri,
Mathura, Varanasi, Kanchipuram, Vellankini, Gaya
2 Cities are specific to schemes :
For HRIDAY : a. Badami : Caves, Inscription and Fort (Archaeological interests)
b. Warangal : Fort and 1000 Pillar Temple (UNESCO Sites)
Hriday : Heritage City >> Culturally important (to understand our past) >> So, identified by
Ministry of Culture >> overall development of City (not some religious sites) >> Hence, Min. of
Urban Development
For PRASAD : a. Kamakhya : Goddess Kamakhya : oldest of the 51 Shakti Peetha
b. Kedarnath : Hindu Religious Site
PRASAD : we get at Temple :p. Prasad : Piligrimage centre focused >> Religious Spot Specific
(more focus on the religious place site rather than whole city) >> Hence, Tourism Ministry.

Explained: The Transgender Persons (Protection of Rights) Bill, 2016

The Transgender Persons (Protection of Rights) Bill, 2016 has been listed for passage during the
ongoing Winter Session of Parliament. This Bill was introduced in the Monsoon Session last
year and referred to the Standing Committee on Social Justice and Empowerment, which tabled
its report earlier this year. The Bill seeks to recognise transgender persons, and confer anti-
discriminatory rights and entitlements related to education, employment, health, and welfare
measures. This post explains key provisions of the Bill and certain issues for consideration.
Self-identification and obtaining a Certificate of Identity
The Bill provides for self-perceived gender identity i.e. persons can determine their gender on
their own. This is in line with a Supreme Court judgement (2014) which held that the self
determination of ones gender is part of the fundamental right to dignity, freedom and personal
autonomy guaranteed under the Constitution.[1]
Along with the provision on self-perceived gender identity, the Bill also provides for a
screening process to obtain a Certificate of Identity. This Certificate will certify the person as
transgender. An application for obtaining such a Certificate will be referred to a District
Screening Committee which will comprise five members including a medical officer,
psychologist or psychiatrist, and a representative of the transgender community.
The Bill therefore allows individuals to self-identify their gender, but at the same time they must
also undergo the screening process to get certified, and as a result be identified as a
transgender. In this context, it is unclear how these two provisions of self-perceived gender
identity and an external screening process will reconcile with each other. The Standing
Committee has also upheld both these processes of self-identification and the external screening
process to get certified. In addition, the Committee recommended that the Bill should provide
for a mechanism for appeal against the decisions of the District Screening Committee.
Since, the Bill provides certain entitlements to transgender persons for their inclusion and
participation in society, it can be argued that there must be an objective criteria to verify the
eligibility of these applicants for them to receive benefits targeted for transgender persons.
Status of transgender persons under existing laws
Currently, several criminal and civil laws recognise two categories of gender i.e. man and
woman. These include laws such as Indian Penal Code (IPC), 1860, National Rural Employment
Guarantee Act, 2005 (NREGA) and Hindu Succession Act, 1956. Now, the Bill seeks to
recognise a third gender i.e. transgender. However, the Bill does not clarify how transgender
persons will be treated under certain existing laws.
For example, under NREGA, priority is given to women workers (at least one-third of the
beneficiaries are to be women) if they have registered and requested for work under the Act.
Similarly, under the Hindu Adoptions and Maintenance Act, 1956, there are different eligibility
criteria for males and females to adopt a girl child. In this context, the applicability of such laws
to a transgender person is not stated in the Bill. The Standing Committee has recommended
recognising transgender persons right to marriage, partnership, divorce and adoption, as
governed by their personal laws or other relevant legislation.
In addition, the penalties for similar offences may also vary because of the application of different
laws based on gender identity. For example, under the IPC, sexual offences related to women
attract a maximum penalty of life imprisonment, which is higher than that specified for sexual
abuse against a transgender person under the Bill (up to two years).[2]
Who is a transgender person?
As per international standards, transgender is an umbrella term that includes persons whose
sense of gender does not match with the gender assigned to them at birth.[3], [4] For example, a
person born as a man may identify with the opposite gender, i.e., as a woman. [5] In addition to
this sense of mismatch, the definition provided under the Bill also lists further criteria to be
defined as a transgender person. These additional criteria include being (i) neither wholly male
nor female, or (ii) a combination of male or female, or (iii) neither male nor female.
The Supreme Court, the Expert Committee of the Ministry of Social Justice and Welfare, and the
recent Standing Committee report all define transgender persons based on the mismatch
only.1,[5],[6] Therefore, the definition provided under the Bill does not clarify if simply proving a
mismatch is enough (as is the norm internationally) or whether the additional listed criteria ought
to be fulfilled as well.
Offences and penalties
The Bill specifies certain offences which include: (i) compelling transgender persons to beg or
do forced or bonded labour, and (ii) physical, sexual, verbal, emotional or economic abuse. These
offences will attract imprisonment between six months and two years, in addition to a fine.
The Standing Committee recommended graded punishment for different offences, and suggested
that those involving physical and sexual assault should attract higher punishment. It further
stated that the Bill must also specifically recognise and provide appropriate penalties for violence
faced by transgender persons from officials in educational institutions, healthcare institutions,
police stations, etc.

The FRDI Bill: Bail-In provisions explained

The Financial Resolution and Deposit Insurance Bill, 2017 was introduced in Lok Sabha during
Monsoon Session 2017. The Bill is currently being examined by a Joint Committee of the two
Houses of Parliament. It seeks to establish a Resolution Corporation which will monitor the risk
faced by financial firms such as banks and insurance companies, and resolve them in case of
failure. For FAQs explaining the regulatory framework under the Bill, please see here.
Over the last few days, there has been some discussion around provisions of the Bill which allow
for cancellation or writing down of liabilities of a financial firm (known as bail-in).[1],[2] There
are concerns that these provisions may put depositors in an unfavourable position in case a bank
fails. In this context, we explain the bail-in process below.
What is bail-in?
The Bill specifies various tools to resolve a failing financial firm which include transferring its
assets and liabilities, merging it with another firm, or liquidating it. One of these methods allows
for a financial firm on the verge of failure to be rescued by internally restructuring its debt. This
method is known as bail-in.
Bail-in differs from a bail-out which involves funds being infused by external sources to resolve
a firm. This includes a failing firm being rescued by the government.
How does it work?
Under bail-in, the Resolution Corporation can internally restructure the firms debt by: (i)
cancelling liabilities that the firm owes to its creditors, or (ii) converting its liabilities into any
other instrument (e.g., converting debt into equity), among others.[3]
Bail-in may be used in cases where it is necessary to continue the services of the firm, but the
option of selling it is not feasible.[4] This method allows for losses to be absorbed and
consequently enables the firm to carry on business for a reasonable time period while maintaining
market confidence.3 The Bill allows the Resolution Corporation to either resolve a firm by only
using bail-in, or use bail-in as part of a larger resolution scheme in combination with other
resolution methods like a merger or acquisition.
Do the current laws in India allow for bail-in? What happens to bank deposits in case of
failure?
Current laws governing resolution of financial firms do not contain provisions for a bail in. If a
bank fails, it may either be merged with another bank or liquidated.
In case of bank deposits, amounts up to one lakh rupees are insured by the Deposit Insurance and
Credit Guarantee Corporation (DICGC). In the absence of the bank having sufficient resources
to repay deposits above this amount, depositors will lose their money. The DICGC Act, 1961
originally insured deposits up to Rs 1,500 and permitted the DICGC to increase this amount with
the approval of the central government. The current insured amount of one lakh rupees was fixed
in May 1993.[5] The Bill has a similar provision which allows the Resolution Corporation to set
the insured amount in consultation with the RBI.
Does the Bill specify safeguards for creditors, including depositors?
The Bill specifies that the power of the Corporation while using bail-in to resolve a firm will be
limited. There are certain safeguards
which seek to protect creditors and ensure
continuity of critical functions of the
firm.
When resolving a firm through bail-in, the
Corporation will have to ensure that none
of the creditors (including bank
depositors) receive less than what they
would have been entitled to receive if the
firm was to be liquidated.[6],[7]
Further, the Bill allows a liability to be
cancelled or converted under bail-in only
if the creditor has given his consent to do so in the contract governing such debt. The terms and
conditions of bank deposits will determine whether the bail-in clause can be applied to them.
Do other countries contain similar provisions?
After the global financial crisis in 2008, several countries such as the US and those across Europe
developed specialised resolution capabilities. This was aimed at preventing another crisis and
sought to strengthen mechanisms for monitoring and resolving sick financial firms.
The Financial Stability Board, an international body comprising G20 countries (including India),
recommended that countries should allow resolution of firms by bail-in under their
jurisdiction. The European Union also issued a directive proposing a structure for member
countries to follow while framing their respective resolution laws. This directive suggested that
countries should include bail-in among their resolution tools. Countries such as UK and
Germany have provided for bail-in under their laws. However, this method has rarely been
used.7,[8] One of the rare instances was in 2013, when bail-in was used to resolve a bank in
Cyprus.

The Anti-Defection Law Explained

On Monday, December 4, the Chairman of Rajya Sabha disqualified two Members of Parliament
(MPs) from the House under the Tenth Schedule of the Constitution (better known as the anti-
defection law) for having defected from their party.[1] These members were elected on a Janata
Dal (United) ticket. The Madras High Court is also hearing petitions filed by 18 MLAs who were
disqualified by the Speaker of the Tamil Nadu Assembly in September 2017 under the anti-
defection law. Allegations of legislators defecting in violation of the law have been made in
several other states including Andhra Pradesh, Arunachal Pradesh, Goa, Manipur, Nagaland,
Telangana and Uttarakhand in recent years.[2] In this context, we explain the anti-defection law.
What is the anti-defection law?
Aaya Ram Gaya Ram was a phrase that became popular in Indian politics after a Haryana MLA
Gaya Lal changed his party thrice within the same day in 1967. The anti-defection law sought to
prevent such political defections which may be due to reward of office or other similar
considerations.[3]
The Tenth Schedule was inserted in the Constitution in 1985. It lays down the process by which
legislators may be disqualified on grounds of defection by the Presiding Officer of a legislature
based on a petition by any other member of the House. A legislator is deemed to have defected
if he either voluntarily gives up the membership of his party or disobeys the directives of the party
leadership on a vote. This implies that a legislator defying (abstaining or voting against) the party
whip on any issue can lose his membership of the House. The law applies to both Parliament
and state assemblies.
Are there any exceptions under the law?
Yes, legislators may change their party without the risk of disqualification in certain
circumstances. The law allows a party to merge with or into another party provided that at least
two-thirds of its legislators are in favour of the merger. In such a scenario, neither the members
who decide to merge, nor the ones who stay with the original party will face disqualification.
Various expert committees have recommended that rather than the Presiding Officer, the decision
to disqualify a member should be made by the President (in case of MPs) or the Governor (in
case of MLAs) on the advice of the Election Commission.[4] This would be similar to the process
followed for disqualification in case the person holds an office of profit (i.e. the person holds an
office under the central or state government which carries a remuneration, and has not been
excluded in a list made by the legislature).
How has the law been interpreted by the Courts while deciding on related matters?
The Supreme Court has interpreted different provisions of the law. We discuss some of these
below.
The phrase Voluntarily gives up his membership has a wider connotation than resignation
The law provides for a member to be disqualified if he voluntarily gives up his membership.
However, the Supreme Court has interpreted that in the absence of a formal resignation by the
member, the giving up of membership can be inferred by his conduct.[5] In other judgments,
members who have publicly expressed opposition to their party or support for another party were
deemed to have resigned.[6]
In the case of the two JD(U) MPs who were disqualified from Rajya Sabha on Monday, they
were deemed to have voluntarily given up their membership by engaging in anti-party activities
which included criticizing the party on public forums on multiple occasions, and attending rallies
organised by opposition parties in Bihar.[7]
Decision of the Presiding Officer is subject to judicial review
The law initially stated that the decision of the Presiding Officer is not subject to judicial review.
This condition was struck down by the Supreme Court in 1992, thereby allowing appeals against
the Presiding Officers decision in the High Court and Supreme Court.[8] However, it held that
there may not be any judicial intervention until the Presiding Officer gives his order.
In 2015, the Hyderabad High Court, refused to intervene after hearing a petition which alleged
that there had been delay by the Telangana Assembly Speaker in acting against a member under
the anti-defection law.[9]
Is there a time limit within which the Presiding Officer has to decide?
The law does not specify a time-period for the Presiding Officer to decide on a disqualification
plea. Given that courts can intervene only after the Presiding Officer has decided on the matter,
the petitioner seeking disqualification has no option but to wait for this decision to be made.
There have been several cases where the Courts have expressed concern about the unnecessary
delay in deciding such petitions.[10] In some cases this delay in decision making has resulted in
members, who have defected from their parties, continuing to be members of the House. There
have also been instances where opposition members have been appointed ministers in the
government while still retaining the membership of their original parties in the legislature.[11]
In recent years, opposition MLAs in some states, such as Andhra Pradesh and Telangana, have
broken away in small groups gradually to join the ruling party. In some of these cases, more than
2/3rd of the opposition has defected to the ruling party.
In these scenarios, the MLAs were subject to disqualification while defecting to the ruling party
in smaller groups. However, it is not clear if they will still face disqualification if the Presiding
Officer makes a decision after more than 2/3rd of the opposition has defected to the ruling party.
The Telangana Speaker in March 2016 allowed the merger of the TDP Legislature Party in
Telangana with the ruling TRS, citing that in total, 80% of the TDP MLAs (12 out of 15) had
joined the TRS at the time of taking the decision.[12]
In Andhra Pradesh, legislators of the main opposition party recently boycotted the entire 12-day
assembly session. This boycott was in protest against the delay of over 18 months in action being
taken against legislators of their party who have allegedly defected to the ruling party.[13] The
Vice President, in his recent order disqualifying two JD(U) members stated that all such petitions
should be decided by the Presiding Officers within a period of around three months.
Does the anti-defection law affect the ability of legislators to make decisions?
The anti-defection law seeks to provide a stable government by ensuring the legislators do not
switch sides. However, this law also restricts a legislator from voting in line with his conscience,
judgement and interests of his electorate. Such a situation impedes the oversight function of the
legislature over the government, by ensuring that members vote based on the decisions taken by
the party leadership, and not what their constituents would like them to vote for.
Political parties issue a direction to MPs on how to vote on most issues, irrespective of the nature
of the issue. Several experts have suggested that the law should be valid only for those votes that
determine the stability of the government (passage of the annual budget or no-confidence
motions). [14]

Decoding the Code on Wages

Presently, there are around 40 state and central laws regulating different aspects of labour, such
as resolution of industrial disputes, working conditions in factories, and wage and bonus
payments. Over the years, some experts have recommended that these laws should be
consolidated for easier compliance.[1] Since the current laws vary in their applicability,
consolidation would also allow for greater coverage.
Following these recommendations, the Code on Wages was introduced in the Lok Sabha in
August 2017. The Code consolidates four laws related to minimum wages, payment of wages
and bonus, and a law prohibiting discrimination between men and women during recruitment
promotion and wage payment.
The Code was subsequently referred to the Standing Committee on Labour for examination. The
Committee has met some experts and stakeholders to hear their views. In this context, we explain
the current laws, key provisions of the Code, and some issues to consider.
Who will be entitled to minimum wages?
Currently, the Minimum Wages Act, 1948 lists the employments where employers are required
to pay minimum wages to workers. The Act applies to the organised sector as well as certain
workers in the unorganised sector such as agricultural workers. The centre and states may add
more employments to this list and mandate that minimum wages be paid for those jobs as
well.[2] At present, there are more than 1700 employments notified by the central and state
governments.[3]
The Code proposes to do away with the concept of bringing specific jobs under the Act, and
mandates that minimum wages be paid for all types of employment irrespective of whether they
are in the organised or the unorganised sector.
The unorganised sector comprises 92% of the total workforce in the country.1 A large proportion
of these workers are currently not covered by the Minimum Wages Act, 1948. Experts have
noted that over 90% of the workers in the unorganised sector do not have a written contract,
which hampers the enforcement of various labour laws.[4]
Will minimum wages be uniform across the country?
No, different states will set their respective minimum wages. In addition, the Code introduces a
national minimum wage which will be set by the central government. This will act as a floor for
state governments to set their respective minimum wages. The central government may set
different national minimum wages for different states or regions. For example, the centre can set
a national minimum wage of Rs 10,000 for Uttar Pradesh and Rs 12,000 for Tamil Nadu. Both
of these states would then have to set their minimum wages either equal to or more than the
national minimum wage applicable in that state.
The manner in which the Code proposes to implement the national minimum wage is different
from how it has been thought about in the past. Earlier, experts had suggested that a single
national minimum wage should be introduced for the entire country. 1,[5] This would help in
bringing uniformity in minimum wages across states and industries. In addition, it would ensure
that workers receive a minimum income regardless of the region or sector in which they are
employed.
The concept of setting a national minimum wage exists in various countries across the world. For
instance, in the United Kingdom one wage rate is set by the central government for the entire
country.[6] On the other hand, in the United States of America, the central government sets a
single minimum wage and states are free to set a minimum wage equal to or above this floor.[7]
On what basis will the minimum wages be calculated and fixed?
Currently, the central government sets the minimum wage for certain employments, such as
mines, railways or ports among others. The state governments set the minimum wage for all
other employments. These minimum wages can be fixed based on the basis of different criteria
such as type of industry or skill level of the worker. For example, Kerala mandates that workers
in oil mills be paid minimum wages at the rate of Rs 370 per day if they are unskilled, Rs 400 if
they are semi-skilled and Rs 430 if they are skilled.[8]
The Code also specifies that the centre or states will fix minimum wages taking into account
factors such as skills required and difficulty of work. In addition, they will also consider price
variations while determining the appropriate minimum wage. This process of fixing minimum
wages is similar to the current law.
Will workers be entitled to an overtime for working beyond regular hours?
Currently, the central or state government define the number of hours that constitute a normal
working day. In case an employee works beyond these hours, he is entitled to an overtime rate
which is fixed by the government. As of today, the central government has fixed the overtime
rate at 1.5 times normal wages in agriculture and double the normal wages for other
employments.[9]
The Code proposes to fix this overtime rate at twice the prevailing wage rate. International
organisations have recommended that overtime should be 1.25 times the regular wage.[10]
Does the Code prohibit gender discrimination between workers?
Currently, the Equal Remuneration Act, 1976 prohibits employers from discriminating in wage
payments as well as recruitment of workers on the basis of gender. The Code subsumes the 1976
Act, and contains specific provisions which prohibit gender discrimination in matters related to
wages. However, unlike in the 1976 Act, the Code does not explicitly prohibit gender
discrimination at the stage of recruitment.
How is the Code going to be enforced?
The four Acts being subsumed under the Code specify that inspectors will be appointed to ensure
that the laws are being enforced properly. These inspectors may carry out surprise checks,
examine persons, and require them to give information.
The Code introduces the concept of a facilitator who will carry out inspections and also provide
employers and workers with information on how to improve their compliance with the
law. Inspections will be carried out on the basis of a web-based inspection schedule that will be
decided by the central or state government.
Role of Parliament in holding the government accountable
Parliament sessions are usually held thrice a year: once in February for the Budget Session, once
around July or August for the Monsoon Session, and once in November for the Winter
Session. This year, the government is yet to announce the dates for the Winter Session. While
there has been uncertainty around whether Parliament will meet, ministers in the government
have indicated that the Session will be held soon.[1]
The practice of allowing the government to convene Parliament differs from those followed in
other countries. Some of these countries have a limited role for the government in summoning
the legislature, because in a parliamentary democracy the executive is accountable to
Parliament. Allowing the government to call the Parliament to meet could be in conflict with
this principle. While we wait for the government to announce the dates for the Winter Session,
this post looks at the relationship between Parliament and the government, recommendations
made over the years on improving some parliamentary customs, and discusses certain practices
followed by other countries.
What is the role of Parliament in a democracy?
The Constitution provides for the legislature to make laws, the government to implement laws,
and the courts to interpret and enforce these laws. While the judiciary is independent from the
other two branches, the government is formed with the support of a majority of members in the
legislature. Therefore, the government is collectively responsible to Parliament for its
actions. This implies that Parliament (i.e. Lok Sabha and Rajya Sabha) can hold the government
accountable for its decisions, and scrutinise its functioning. This may be done using various
methods including, during debates on Bills or issues on the floor of Parliament, by posing
questions to ministers during Question Hour, and in parliamentary committees.
Who convenes Parliament?
Parliament must be convened by the President at least once in every six months. Since the
President acts on the advice of the central government, the duration of the session is decided by
the government.
Given the legislatures role in keeping the executive accountable for its actions, one argument is
that the government should not have the power to convene Parliament. Instead, Parliament
should convene itself, if a certain number of MPs agree, so that it can effectively exercise its
oversight functions and address issues without delay. Some countries such as the United
Kingdom and Australia release an annual calendar with the sitting dates at the beginning of the
year.
How regularly has Parliament been meeting over the years?
Over the years, there has been a decline in the sitting days of Parliament. While Lok Sabha met
for an average of 130 days in a year during the
1950s, these sittings came down to 70 days in
the 2000s. Lesser number of sittings indicates
that Parliament was able to transact less
business compared to previous years. To
address this, the National Commission to
Review the Working of the Constitution has
recommended that Lok Sabha should have at
least 120 sittings in a year, while Rajya Sabha
should have 100 sittings.[2]
The Constituent Assembly, while drafting the Constitution had debated the power that should be
given to Parliament with regard to convening itself. Mr. K. T. Shah, a member of the Assembly,
had suggested that in case the President or the Prime Minister are unable or unwilling to call for
a Parliament session, the power to convene the Houses should be given to the presiding officers
of those Houses (i.e., the Chairman of Rajya Sabha and the Speaker of Lok Sabha). In addition,
he had also suggested that Parliament should itself regulate its procedure, sittings and timings.[3]
How does Parliament hold the government accountable?
One of the forums of holding the government accountable for its actions is the Question
Hour. During Question Hour, MPs may pose
questions to ministers related to the
implementation of laws and policies by the
government.
In the 16th Lok Sabha, question hour has
functioned in Lok Sabha for 77% of the
scheduled time, while in Rajya Sabha it has
functioned for 47%. A lower rate of
functioning reflects time lost due to
disruptions which reduces the number of
questions that may be answered
orally. While Parliament may sit for extra
hours to transact other business, time lost
during Question Hour is not made
up. Consequently, this time lost indicates a
lost opportunity to hold the government accountable for its actions.
Further, there is no mechanism currently for answering questions which require inter-ministerial
expertise or relate to broader government policy. Since the Prime Minister does not answer
questions other than the ones pertaining to his ministries, such questions may either not get
adequately addressed or remain unanswered. In countries such as the UK, the Prime Ministers
Question Time is conducted on a weekly basis. During the 30 minutes the Prime Minister
answers questions posed by various MPs. These questions relate to broader government policies,
engagements, and issues affecting the country.[4]
How is public opinion reflected in Parliament?
MPs may raise issues of public importance in Parliament, and examine the governments
response to problems being faced by citizens through: (i) a debate, which entails a reply by the
concerned minister, or (ii) a motion which
entails a vote. The time allocated for
discussing some of these debates or Bills is
determined by the Business Advisory
Committee of the House, consisting of
members from both the ruling and opposition
parties.
Using these methods, MPs may discuss
important matters, policies, and topical
issues. The concerned minister while replying
to the debate may make assurances to the
House regarding steps that will be taken to
address the situation. As of August 2017, 50% of the assurances made in the 16 th Lok Sabha
have been implemented.[5]
Alternatively, MPs may move a motion for: (i) discussing important issues (such as inflation,
drought, and corruption), (ii) adjournment of business in a House in order to express displeasure
over a government policy, or (iii) expressing no confidence in the government leading to its
resignation. The 16th Lok Sabha has only discussed one adjournment motion so far.
To improve government accountability in Parliament, the opposition in some countries such as
the UK, Canada, and Australia forms a shadow cabinet.[6],[7] Under such a system, opposition
MPs track a certain portfolio, scrutinise its performance and suggest alternate programs. This
allows for detailed tracking and scrutiny of ministries, and assists MPs in making constructive
suggestions. Some of these countries also provide for days when the opposition parties decide
the agenda for Parliament.

Doing Business in India

Ease of doing business refers to the regulatory environment in a country to set up and operate
a business. Every year, the World Bank compares the business environment in 190 countries in
its Ease of Doing Business Report. In its report released yesterday, Indias rank improved to 100
out of 190 countries in 2017, from its rank of 130 in the previous year.[1],[2] In this context, we
explain the parameters on which each country is ranked, what has led to Indias improvement in
rankings, and some recommendations made by committees to further improve the business
environment in the country.
What parameters is a country ranked on?
The ease of doing business rankings are based on a
countrys performance on 10 parameters such as
enforcing contracts and starting a business. In
India, these rankings are based on the business
environment in Mumbai and Delhi. A lower rank
indicates better performance on that parameter,
whereas a higher rank indicates worse performance
on the indicator. Indias ranking improved in six
out of the 10 parameters over the previous year,
while it remained the same or fell in the remaining
four (see Table 1).
Note that these parameters are regulated by
different agencies across the three tiers of
government (i.e. central, state and municipal). For
example, for starting a business, registration and
other clearances are granted by central ministries such as Finance and Corporate
Affairs. Electricity and water connections for a business are granted by the state electricity and
water boards. The municipal corporations grant building permits and various other no objection
certificates to businesses.
What has led to an improvement in Indias ease of doing business rankings?
According to the 2017 report, India introduced changes in some of these parameters, which
helped in improving its ranking.1 Some of these changes include:
Starting a business: Starting a business involves obtaining clearances, and conforming to
various regulations under laws such as Companies Act, 2013. The report noted that India
 merged the application procedure for getting a Permanent Account Number (PAN) and
the Tax Account Number (TAN) for new businesses. It also improved the online
application system for getting a PAN and a TAN.
Getting credit and resolving insolvency: The Insolvency and Bankruptcy Code passed in
2016 provides for a 180-day time-bound process to resolve insolvency.[3] It also provides
for the continuation of a debtors business during these proceedings. The Code allows
secured creditors to opt out of resolution proceedings, and specifies that a debtor will be
immune against creditor claims during the 180-day insolvency resolution process. Prior
to the passage of the Code, it took 4.3 years in India to liquidate a business (as of 2015).
Paying taxes: The report notes that India made paying taxes easier by requiring that
payments to the Employees Provident Fund are made electronically.[4] Further, it
introduced measures to ease compliance with corporate income tax.1,[5]
Trading across borders: Import border compliance at the Jawaharlal Nehru Port, Mumbai
was reduced. Export and Import costs were also reduced through increasing use of
electronic and mobile platforms, among others.
Enforcing contracts: The introduction of the National Judicial Data Grid has made it
possible to generate case management reports on local courts.[6]
What are some of the other recommendations to improve the business environment in
India?
Over the last few years various committees, such as an Expert Committee constituted by the
Department of Industrial Policy and Promotion and the Standing Committee of Commerce, have
studied the the regulatory requirements for starting a business in India and the made
recommendations on the ease of doing business.[7],[8],[9] Some of the issues and
recommendations made by these committees are discussed below.
Starting a business: The Standing Committee observed that regulations and procedures for
starting a business are time-consuming.8 The Committee observed that as a consequence, a large
number of start-ups are moving out of India and setting base in countries like Singapore where
such procedures are easier. It emphasised on the need to streamline regulations to give businesses
in India a boost. Note that the government announced the Start-up India Action Plan in January
2016.[10] The 19-point plan identified steps to simplify the process for registering and operating
start-ups. It also proposed to grant tax exemptions to these businesses.
The Committee had suggested that the procedures and time period for registration of companies
should be reduced. In addition, a unique business ID should be created to integrate all
information related to a debtor. This ID should be used as sole reference for the business.
Acquiring land, registering property: Under the current legal framework there are delays in
acquiring land and getting necessary permissions to use it. These delays are on account of
multiple reasons including the availability of suitable land and disputes related to land titles. It
has been noted that land titles in India are unclear due to various reasons including legacy of the
zamindari system, gaps in the legal framework and poor administration of land records.[11]
The Standing Committee observed that the process of updating and digitising land records has
been going on for three decades. It recommended that this process should be completed at the
earliest. The digitised records would assist in removing ambiguity in land titles and help in its
smooth transfer. It also suggested that land ownership may be ascertained by integrating space
technology and identification documents such as Aadhaar. Note that as of September 2017, land
records had been linked with Aadhaar in 4% of the villages across the country.[11]
Several states have taken steps to improve regulations related to land and transfer of
property.8 These steps include integration of land records and land registration by Andhra
Pradesh and Gujarat, and the passage of a law to certify land titles in urban areas by
Rajasthan. The Committee also recommended creating a single window for registration of
property, to reduce delays.8
Construction permits: In India, obtaining construction permits involves multiple procedures
and is time consuming. The Standing Committee had observed that it took 33 procedures (such
as getting no objection certificates from individual departments) over 192 days to obtain a
construction permit in India.8 On the other hand, obtaining a similar permit in Singapore involved
10 procedures and took 26 days.
Taxation: The Standing Committee had noted that the tax administration in India was complex,
and arbitration proceedings were time-consuming. It observed that the controversies on the
Minimum Alternate Tax on capital gains and the tax disputes with companies like Vodafone and
Shell had harmed Indias image on taxation matters. Such policy uncertainty and tax disputes
have made foreign companies hesitant to do business in India.8
The Committee observed that for Make in India to succeed, there is a need for a fair, judicious
and stable tax administration in the country. Further, it suggested that to reduce harassment of
tax payers, an electronic tax administration system should be created.8 Such a system would
reduce human interface during dispute resolution. Note that the Goods and Services Tax (GST)
was introduced across the country from July 1, 2017. The GST framework allows for electronic
filling of tax returns, among other measures.[12]
Enforcing contracts: Enforcing contracts requires the involvement of the judicial system. The
time taken to enforce contracts in India is long. For instance, the Standing Committee noted that
it took close to four years in India for enforcing contracts. On the other hand, it took less than
six months for contract enforcement in Singapore. This may be due to various reasons including
complex litigation procedures, confusion related to jurisdiction of courts and high existing
pendency of cases.8
The Standing Committee recommended that an alternative dispute resolution mechanism and fast
track courts should be set up to expedite disposal of contract enforcement cases. It suggested that
efforts should be made to limit adjournments to exceptional circumstances only. It also
recommended that certified practitioners should be created, to assist dispute resolution. 8

Committees in state legislatures

The Governor of Rajasthan promulgated two Ordinances amending the Code of Criminal
Procedure, 1973 and Indian Penal Code, 1860 applicable in Rajasthan on September 7. The
Ordinances restrain any investigation to be conducted against a judge, magistrate or public
servant without prior sanction of the government. The decision to grant sanction will have to be
taken within six months, failing which such sanction will be deemed to have been granted. The
Ordinances also restrain any person from reporting on the individual in question until sanction
for investigation is granted. Two Bills replacing these Ordinances were introduced in the
Rajasthan Assembly by the state Home Minister last week, on October 23.[i] After introduction,
the Bills were referred to a 15-member select committee comprising of legislators from the state
Assembly, and headed by the Home Minister of Rajasthan. This blog examines the role of
committees and some of the practices observed in state legislatures.
Purpose of committees in legislatures
In India, state legislatures sit for 31 days a year on an average.* Several Bills are passed within
a few days of their introduction. One of the primary responsibilities of the legislature is to hold
the executive accountable, and examine potential laws. Due to paucity of time, it is difficult for
the members go through all the bills and discuss them in detail. To address this issue, various
committees are set up in Parliament and state assemblies where smaller group of members
examine Bills in detail, and allow for an informed debate in the legislature. Apart from
scrutinising legislation, committees also examine budgetary allocations for various departments
and other policies of the government. These mini-legislatures provide a forum for law makers to
develop expertise, engage with citizens and seek inputs from stakeholders. Since these
committees consist of members from different parties, they provide a platform for building
consensus on various issues.
Figure 1: Average
sitting days in a
year (2012-16)
Sources: Website of
various state
assemblies as on
October 30, 2017.
Types of
committees
There are broadly
three types of
committees: (i)
Financial
committees: These scrutinise the expenditure of the government and recommend efficient ways
of spending funds (example: Public Accounts Committee and Estimates Committee), (ii)
Department-Related Standing Committees (DRSC): These scrutinise performance of
departments under a ministry, (iii) Other committees: These deal with day-to-day functioning of
the legislature (example: Business Advisory Committee, Papers Laid, Rules, etc.) While there
are 3 financial committees and 24 department related committees in Parliament, the number of
committees in state legislatures varies. For example, Kerala has 14 subject committees
examining all departments, while Delhi has seven standing committees scrutinising performance
of various departments. [ii],[iii] However, not all states have a provision for specific DRSCs or
subject committees.
Similar to Parliament, state legislatures also have a provision to form a select committee to
examine a particular legislation or a subject. Such a committee is disbanded after it presents a
report with its findings or recommendations. Several Bills in states are referred to select
committees. However, the practice in some state legislatures with respect to select committees
deviate from those in the Parliament.
Independence of select committee from the executive
The rules in several states provide for the minister in-charge piloting the bill to be an ex-officio
member of the select committee. These states include Rajasthan, Assam, Andhra Pradesh,
Chhattisgarh, Telangana. Moreover, in Manipur, the rules provide for the minister to be chairman
of the select committee. Note that the minister is part of the executive. His inclusion in the
committee may be in conflict with the committees role of scrutinising the functioning of the
executive.
The practice of including ministers in committees is in contrast with the protocol followed in
Parliament where a minister is not part of any DRSC or select committee. As committees of the
legislature hold the executive accountable, having a minister on the select committee undermines
the role of legislature as an oversight mechanism. A minister, as a representative of the executive
being part of such committees may impede the ability of committees to effectively hold the
executive accountable.
The two Bills introduced in the Rajasthan Assembly last week were referred to a select committee
headed by the Home Minister of the state. There have been several instances in other state
legislatures where the minister introducing a bill was chairman of the select committee examining
it. In Goa, a bill empowering the government to acquire land for development of public services
is headed by the Revenue Minister of the state.[iv] Similarly, in Arunachal Pradesh, the select
committee examining a bill for establishment of a university was headed by the Education
Minister.[v] In Maharashtra as well, the Education Minister was chairman of the select committee
scrutinising a bill granting greater autonomy to state universities.[vi] For rigorous scrutiny of
legislation, it is essential that the committees are independent of the executive.
Strengthening state legislature committees [vii]
The functioning of committees in states can be strengthened in various ways. Some of these
include:
(i) Examination of Bills by assembly committees: In the absence of DRSCs, most bills are
passed without detailed scrutiny while some bills are occasionally referred to select committees.
In Parliament, bills pertaining to a certain ministry are referred to the respective DRSCs for
scrutiny. To strengthen legislatures, DRSCs must examine all bills introduced in the assembly.
(ii) Scrutiny of budgets: Several states do not have DRSCs to examine budgetary proposals.
Some states like Goa, Mizoram and Arunachal Pradesh have a budget committee to examine
budget proposals. Post the 14th Finance commission, there is a higher devolution of funds to state
governments from the centre. With states increasingly spending more, it is necessary for them
to have DRSCs that scrutinise the allocations and expenditures to various departments before
they are approved by state assemblies.

*Based on the average sitting days for 18 state assemblies from 2012-2016.

Food Security in India

The United Nations celebrates October 16 as the World Food Day every year, with an aim to
spread awareness about eradicating hunger and ensuring food security for all.[1] In this context,
we examine the status of food and public distribution in India, and some challenges in ensuring
food security for all.
Background
In 2017-18, over Rs 1,50,000 crore, or 7.6% of the governments total expenditure has been
allocated for providing food subsidy under the Targeted Public Distribution System
(TPDS).[2] This allocation is made to the Department of Food and Public Distribution under the
Ministry of Consumer Affairs.
Food subsidy has been the largest component of the Departments expenditure (94% in 2017-18),
and has increased six-fold over the past 10 years. This subsidy is used for the implementation of
the National Food Security Act, 2013 (NFSA), which provides subsidised food grains (wheat and
rice) to 80 crore people in the country.[3] The NFSA seeks to ensure improved nutritional intake
for people in the country.3
One of the reasons for the six-fold increase in food subsidy is the non-revision of the price at
which food grains are given to beneficiaries since 2002.[4] For example, rice is given to families
under the Antyodaya Anna Yojana at Rs 3/Kg since 2002, while the cost of providing this has
increased from Rs 11/Kg in 2001-02 to Rs 33/Kg in 2017-18.
Provision of food subsidy
TPDS provides food security to people below the
poverty line. Over the years, the expenditure on
food subsidy has increased, while the ratio of
people below poverty line has reduced. A similar
trend can also be seen in the proportion of
undernourished persons in India, which reduced
from 24% in 1990 to 15% in 2014 (see Table
1). These trends may indicate that the share of
people needing subsidised food has declined.
Nutritional balance: The NFSA guarantees food
grains i.e. wheat and rice to beneficiaries, to ensure
nutritious food intake.3 Over the last two decades, the
share of cereals or food grains as a percentage of food
consumption has reduced from 13% to 8% in the country,
whereas that of milk, eggs, fish and meat has increased
(see Figure 1). This indicates a reduced preference for
wheat and rice, and a rise in preference towards other
protein rich food items.
Methods of providing food subsidy
Food subsidy is provided majorly using two
methods. We discuss these in detail below.
TPDS assures beneficiaries that they will receive food
grains, and insulates them against price volatility. Food grains are delivered through fair price
shops in villages, which are easy to access.[5],[6]
However, high leakages have been observed in the system, both during transportation and
distribution. These include pilferage and errors of inclusion and exclusion from the beneficiary
list. In addition, it has also been argued that the distribution of wheat and rice may cause an
imbalance in the nutritional intake as discussed earlier. 7 Beneficiaries have also reported
receiving poor quality food grains as part of the system.
Cash Transfers seek to increase the choices available with a beneficiary, and provide financial
assistance. It has been argued that the costs of DBT may be lesser than TPDS, owing to lesser
costs incurred on transport and storage. These transfers may also be undertaken electronically.6,7
However, it has also been argued that cash received as part of DBT may be spent on non-food
items. Such a system may also expose beneficiaries to inflation. In this regard, one may also
consider the low penetration and access to banking in rural areas.[7]
 In 2017-18, 52% of the centres total subsidy
expenditure will be on providing food subsidy under
TPDS (see Figure 2). The NFSA states that the centre
and states should introduce schemes for cash transfers
to beneficiaries. Other experts have also suggested
replacing TPDS with a Direct Benefit Transfer (DBT)
system.4,[8]
The central government introduced cash subsidy to
TPDS beneficiaries in September 2015.[9] As of March
2016, this was being implemented on a pilot basis in a
few union territories. In 2015, a Committee on
Restructuring of Food Corporation of India had also
recommended introducing Aadhaar to plug leakages in PDS, and indexing it to inflation. The
Committee estimated that a switch to DBT would reduce the food subsidy bill of the government
by more than Rs 30,000 crore.[10]
Current challenges in PDS
Leakages in PDS: Leakages refer to food grains not reaching intended beneficiaries. According
to 2011 data, leakages in PDS were estimated to be 46.7%.10,[11] Leakages may be of three types:
(i) pilferage during transportation of food grains, (ii) diversion at fair price shops to non-
beneficiaries, and (iii) exclusion of entitled beneficiaries from the list.6,[12]
In 2016, the Comptroller and Auditor General (CAG) found that states had not completed the
process of identifying beneficiaries, and 49% of the beneficiaries were yet to be identified. It
also noted that inclusion and exclusion errors had been reported in the beneficiary lists.[13]
In February 2017, the Ministry made it mandatory for beneficiaries under NFSA to use Aadhaar
as proof of identification for receiving food grains. Through this, the government aims to remove
bogus ration cards, check leakages and ensure better delivery of food grains.10,[14] As of January
2017, while 100% ration cards had been digitised, the seeding of these cards with Aadhaar was
at 73%.14

Storage: As of 2016-17, the total storage capacity in the

country is 788 lakh tonnes, of which 354 lakh tonnes is
with the Food Corporation of India and 424 lakh tonnes
is with the state agencies.[15]
The CAG in its performance audit found that the
available storage capacity in states was inadequate for the
allocated quantity of food grains.13 For example, as of
October 2015, of the 233 godowns sanctioned for
construction in Maharashtra, only 93 had been
completed. It also noted that in four of the last five years, the stock of food grains with the centre
had been higher than the storage capacity available with Food Corporation of India.
Quality of food grains: A survey conducted in 2011 had noted that people complained about
receiving poor quality food grain which had to be mixed with other grains to be edible. 6 There
have also been complaints about people receiving food grains containing alien substances such
as pebbles. Poor quality of food may impact the willingness of people to buy food from fair price
shops, and may have an adverse impact on their health.[16]
The Ministry has stated that while regular surveillance, monitoring, inspection and random
sampling of all food items is under-taken by State Food Safety Officers, separate data for food
grains distributed under PDS is unavailable.[17] In the absence of data with regard to quality
testing results of food grains supplied under PDS, it may be difficult to ascertain whether these
food items meet the prescribed quality and safety standards.

Resolving failure of financial firms: The FRDI Bill explained

The Financial Resolution and Deposit Insurance Bill, 2017 was introduced in Parliament during
Monsoon Session 2017.[1] The Bill proposes to create a framework for monitoring financial
firms such as banks, insurance companies, and stock exchanges; pre-empt risk to their financial
position; and resolve them if they fail to honour their obligations (such as repaying
depositors). To ensure continuity of a failing firm, it may be resolved by merging it with another
firm, transferring its assets and liabilities, or reducing its debt. If resolution is found to be
unviable, the firm may be liquidated, and its assets sold to repay its creditors.
After introduction, the Bill was referred to a Joint Committee of Parliament for examination, and
the Committees report is expected in the Winter Session 2017. The Committee has been inviting
stakeholders to give their inputs on the Bill, consulting experts, and undertaking study tours. In
this context, we discuss the provisions of the Bill and some issues for consideration.
What are financial firms?
Financial firms include banks, insurance companies, and stock exchanges, among others. These
firms accept deposits from consumers, channel these deposits into investments, provide loans,
and manage payment systems that facilitate transactions in the country. These firms are an
integral part of the financial system, and since they transact with each other, their failure may
have an adverse impact on financial stability and result in consumers losing their deposits and
investments.
As witnessed in 2008, the failure of a firm (Lehman Brothers) impacted the financial system
across the world, and triggered a global financial crisis. After the crisis, various countries
have sought to consolidate their laws to develop specialised capabilities for resolving failure of
financial firms and to prevent the occurrence of another crisis. [2]
What is the current framework to resolve financial firms? What does the Bill propose?
Currently, there is no specialised law for the resolution of financial firms in India. Provisions to
resolve failure of financial firms are found scattered across different laws. 2 Resolution or
winding up of firms is managed by the regulators for various kinds of financial firms (i.e. the
Reserve Bank of India (RBI) for banks, the Insurance Regulatory and Development Authority
(IRDA) for insurance companies, and the Securities and Exchange Board of India (SEBI) for
stock exchanges.) However, under the current framework, powers of these regulators to resolve
similar entities may vary (e.g. RBI has powers to wind-up or merge scheduled commercial banks,
but not co-operative banks.)
The Bill seeks to create a consolidated framework for the resolution of financial firms by creating
a Resolution Corporation. The Resolution Corporation will include representatives from all
financial sector regulators and the ministry of finance, among others. The Corporation will
monitor these firms to pre-empt failure, and resolve or liquidate them in case of such failure.
How does the Resolution Corporation monitor and prevent failure of financial firms?
Risk based classification: The Resolution Corporation or the regulators (such as the RBI for
banks, IRDA for insurance companies or SEBI for the stock exchanges) will classify financial
firms under five categories, based on their risk of failure (see Figure 1). This classification will
be based on adequacy of capital, assets and liabilities, and capability of management, among
other criteria. The Bill proposes to allow both, the regulator and the Corporation, to monitor and
classify firms based on their risk to failure.
Corrective Action: Based on the risk to failure, the Resolution Corporation or regulators may
direct the firms to take certain corrective action. For example, if the firm is at a higher risk to
failure (under material or imminent categories), the Resolution Corporation or the regulator
may: (i) prevent it from accepting deposits from consumers, (ii) prohibit the firm from acquiring
other businesses, or (iii) require it to increase its capital. Further, these firms will formulate
resolution and restoration plans to prepare a strategy for improving their financial position and
resolving the firm in case it fails.
While the Bill specifies that the financial firms will be classified based on risk, it does not provide
a mechanism for these firms to appeal this decision. One argument to not allow an appeal may
be that certain decisions of the Corporation may require urgent action to prevent the financial
firm from failing. However, this may leave aggrieved persons without a recourse to challenge the
decision of the Corporation if they are unsatisfied.
Figure 1: Monitoring and resolution of financial firms

Sources: The Financial Resolution and Deposit Insurance Bill, 2017; PRS.

How will the Resolution Corporation resolve financial firms that have failed?
The Resolution Corporation will take over the administration of a financial firm from the date of
its classification as critical (i.e. if it is on the verge of failure.) The Resolution Corporation
will resolve the firm using any of the methods specified in the Bill, within one year. This time
limit may be extended by another year (i.e. maximum limit of two years). During this period,
the firm will be immune against all legal actions.
The Resolution Corporation can resolve a financial firm using any of the following methods: (i)
transferring the assets and liabilities of the firm to another firm, (ii) merger or acquisition of the
firm, (iii) creating a bridge financial firm (where a new company is created to take over the assets,
liabilities and management of the failing firm), (iv) bail-in (internally transferring or converting
the debt of the firm), or (v) liquidate the firm to repay its creditors.
If the Resolution Corporation fails to resolve the firm within a maximum period of two years, the
firm will automatically go in for liquidation. The Bill specifies the order of priority in which
creditors will be repaid in case of liquidation, with the amount paid to depositors as deposit
insurance getting preference over other creditors.
While the Bill specifies that resolution will commence upon classification as critical, the point
at which this process will end may not be evident in certain cases. For example, in case of
transfer, merger or liquidation, the end of the process may be inferred from when the operations
are transferred or liquidation is completed, but for some other methods such as bail-in, the point
at which the resolution process will be completed may be unclear.
Does the Bill guarantee the repayment of bank deposits?
The Resolution Corporation will provide deposit insurance to banks up to a certain limit. This
implies, that the Corporation will guarantee the repayment of a certain amount to each depositor
in case the bank fails. Currently, the Deposit Insurance and Credit Guarantee Corporation
(DICGC) provides deposit insurance for bank deposits up to 1 lakh rupees per depositor.[3] The
Bill proposes to subsume the functions of the DICGC under the Resolution Corporation.
Major Tribes in India: State-wise compilation
A tribe is a social division in a traditional society consisting of families linked by social,
economic, religious, or blood ties, with a common culture and dialect. A tribe possesses certain
qualities and characteristics that make it a unique cultural, social, and political entity. This post
is about the major tribes in India. They are also known by the name Adivasis in India.
Tribes in India
The nature of what constitutes an Indian tribe and the very nature of tribes have changed
considerably over the course of centuries. Constitution of India has recognized tribal
communities in India under Schedule 5 of the constitution. Hence the tribes recognized by the
Constitution are known as Scheduled Tribes. There are around 645 distinct tribes in India.
Major Tribes in India: Arranged State-wise
1. Andhra Pradesh: Andh, Sadhu Andh, Bhagata, Bhil, Chenchus (Chenchawar), Gadabas,
Gond, Goundu, Jatapus, Kammara, Kattunayakan, Kolawar, Kolam, Konda, Manna Dhora,
Pardhan, Rona, Savaras, Dabba Yerukula, Nakkala, Dhulia, Thoti, Sugalis.
2. Arunachal Pradesh: Apatanis, Abor, Dafla, Galong, Momba, Sherdukpen, Singpho.
3. Assam: Chakma, Chutiya, Dimasa, Hajong, Garos, Khasis, Gangte.
4. Bihar: Asur, Baiga, Birhor, Birjia, Chero, Gond, Parhaiya, Santhals, Savar.
5. Chhattisgarh: Agariya, Bhaina, Bhattra, Biar, Khond, Mawasi, Nagasia.
6. Goa: Dhodia, Dubia, Naikda, Siddi,Varli.
7. Gujarat: Barda, Bamcha, Bhil, Charan, Dhodia, Gamta, Paradhi, Patelia.
8. Himachal Pradesh: Gaddis, Gujjars, Khas, Lamba, Lahaulas, Pangwala, Swangla.
9. Jammu and Kashmir: Bakarwal, Balti, Beda, Gaddi, Garra, Mon, Purigpa, Sippi.
10.Jharkhand: Birhors, Bhumij, Gonds, Kharia, Mundas, Santhals, Savar.
11.Karnataka: Adiyan, Barda, Gond, Bhil, Iruliga, Koraga, Patelia, Yerava.
12.Kerala: Adiyan, Arandan, Eravallan, Kurumbas, Malai arayan, Moplahs, Uralis.
13.Madhya Pradesh: Baigas, Bhils, Bharia, Birhors, Gonds,Katkari, kharia, Khond, Kol,
Murias.
14.Maharashtra: Bhaina, Bhunjia, Dhodia, Katkari, Khond, Rathawa, Warlis.
15.Manipur: Aimol, Angami, Chiru, Kuki, Maram, Monsang, Paite, Purum, Thadou.
16.Meghalaya: Chakma, Garos, Hajong, Jaintias Khasis, Lakher, Pawai, Raba.
17.Mizoram: Chakma, Dimasa, Khasi, Kuki, Lakher, Pawai, Raba, Synteng.
18.Nagaland: Angami, Garo, Kachari, Kuki, Mikir, Nagas, Sema.
19.Odisha: Gadaba, Ghara, Kharia, Khond, Matya, Oraons, Rajuar, Santhals.
20.Rajasthan: Bhils, Damaria, Dhanka, Meenas(Minas), Patelia, Sahariya.
21.Sikkim: Bhutia, Khas, Lepchas.
22.Tamil Nadu: Adiyan, Aranadan, Eravallan, Irular, Kadar, Kanikar, Kotas, Todas.
23.Telangana: Chenchus.
24.Tripura: Bhil, Bhutia, Chaimal, Chakma, Halam, Khasia, Lushai, Mizel, Namte.
25.Uttarakhand: Bhotias, Buksa, Jannsari, Khas, Raji, Tharu.
26.Uttar Pradesh: Bhotia, Buksa, Jaunsari, Kol, Raji, Tharu.
 27.West Bengal: Asur, Khond, Hajong, Ho, Parhaiya, Rabha, Santhals, Savar.
28.Andaman and Nicobar: Oraons, Onges, Sentinelese, Shompens.
29.Little Andaman: Jarawa.
30.North-East: Abhors, Chang, Galaong, Mishimi, Singpho, Wancho.
Points to remember
Total population of Scheduled Tribes is 84,326,240 as per the Census 2001 which
accounts for 8.2% of the total population of country. The share of the Scheduled Tribe
population in urban areas is a meager 2.4%.
Madhya Pradesh, Maharastra, Orissa, Gujarat, Rajasthan, Jharkhand, Chhattisgarh,
Andhra Pradesh, West Bengal, and Karnataka are the State having larger number of
Scheduled Tribes These states account for 83.2% of the total Scheduled Tribe population
of the country. Assam, Meghalaya, Nagaland, Jammu & Kashmir, Tripura, Mizoram, Bihar,
Manipur, Arunachal Pradesh, and Tamil Nadu, account for another 15.3% of the total
Scheduled Tribe population. The share of the remaining states / Uts is negligible.
The scheduled Tribes in India form the largest proportion of the total population in
Lakshadweep and Mizoram followed by Nagaland and Meghalaya.
Madhya Pradesh has the largest number of scheduled Tribes followed by Bihar.

Bastar district of Madhya Pradesh consists of largest number of Scheduled Tribes.

There are no Scheduled Tribes in Punjab, Delhi, Chandigarh, Pondicherry, Haryana.

In Lok Sabha there is reservation of seats for Scheduled Tribes. Here also census figures
are taken into account. Allocation of seats for Scheduled Tribes in the Lok Sabha are made
on the basis of proportion of Scheduled Tribes in the State concerned to that of the total
population, vide provision contained in Article 330 of the Constitution of India read with
Section 3 of the R. P. Act, 1950.
For Scheduled Tribes, 47 seats are reserved in Lok Sabha. The 1st schedule to R. P. Act,
1950 as amended vide Representation of People (Amendment) Act , 2008 gives the
Statewise break up
Scheduled Tribes
Article 366 (25) defined scheduled tribes as such tribes or tribal communities or parts of or
groups within such tribes or tribal communities as are deemed under Article 342 to be Scheduled
Tribes for the purposes of this constitution.
Article 342 in The Constitution Of India 1949
Scheduled Tribes
(1) The President may with respect to any State or Union territory, and where it is a State, after
consultation with the Governor thereof, by public notification, specify the tribes or tribal
communities or parts of or groups within tribes or tribal communities which shall for the purposes
of this Constitution be deemed to be Scheduled Tribes in relation to that State or Union territory,
as the case may be
(2) Parliament may by law include in or exclude from the list of Scheduled Tribes specified in
a notification issued under clause ( 1 ) any tribe or tribal community or part of or group within
any tribe or tribal community, but save as aforesaid a notification issued under the said clause
shall not be varied by any subsequent notification PART XVII OFFICIAL LANGUAGE
CHAPTER I LANGUAGE OF THE UNION.
Ministry of Tribal Affairs
Ministry of Tribal Affairs is responsible for the over all development of the scheduled tribes in
India. This Ministry was set up in 1999 after the bifurcation of Ministry of Social Justice and
Empowerment with the objective of providing more focused approach on the integrated socio-
economic development of the Scheduled Tribes (STs), the most underprivileged of the Indian
Society, in a coordinated and planned manner.
The Ministry of Tribal Affairs shall be the nodal Ministry for overall policy, planning and
coordination of programmes of development for the Scheduled Tribes. In regard to sectoral
programmes and schemes of development of these communities policy, planning, monitoring,
evaluation etc. as also their coordination will be the responsibility of the concerned Central
Ministries/ Departments, State Governments and Union Territory Administrations. Each Central
Ministry/Department will be the nodal Ministry or Department concerning its sector.
Before the formation of the Ministry, tribal affairs were handled by different Ministries as
follows:
1. As a Division of the Ministry of Home Affairs named as Tribal Division since
independence up to September, 1985.
2. Ministry of Welfare: From September 1985 to May 1998.
3. Ministry of Social Justice & Empowerment from May 1998 to September 1999.
National Commission for Scheduled Tribes (NCST)
The National Commission for Scheduled Tribes (NCST) was established by amending Article
338 and inserting a new Article 338A in the Constitution through the Constitution (89th
Amendment) Act, 2003. By this amendment, the erstwhile National Commission for Scheduled
Castes and Scheduled Tribes was replaced by two separate Commissions namely- (i) the National
Commission for Scheduled Castes (NCSC), and (ii) the National Commission for Scheduled
Tribes (NCST) w.e.f. 19 February, 2004.
The Tribal Sub Plan (TSP) strategy
The Tribal Sub Plan (TSP) strategy is a Government of India initative aimed for the rapid socio-
economic development of tribal people. The funds provided under the Tribal Sub Plan of the
State have to be at least equal in proportion to the ST population of each State or UTs. Similarly
Central Ministries/Departments are also required to earmark funds out of their budget for the
Tribal Sub-Plan. As per guidelines issued by the Planning Commission, the Tribal Sub Plan funds
are to be non-divertible and non-lapsable. The National Commission for Scheduled Tribes is
vested with the duty to participate and advise in the planning process of socio-economic
development of STs, and to evaluate the progress of their development under the Union and any
State.
Reference:
Ministry of Tribal Affairs

Minstry of Law and Justice

CensusIndia
Racial Diversity in India
Favourable physiography and
prevailing climate condition of
the country has been the
cause of influx of population
streams majorly from central
Asia along with Australia and
Tanzania thus the resultant
racial diversity in India. It is the
long temporal influx of these
people that marks the
development of India as the
example of multiracial
country. The validity of racial
categorization have been
discarded in context of strong
intermixing among the racial
communities .It is census
report 1991 that thus avails the data for the general spatial categorization and analysis of racial
diversity in India.
The prominent racial group recognized in the country is Caucasoid with the division of Dravidian
and Aryans as peninsular and extra peninsular dwellers.
The Dravidian population incorporates two major racial groups identified as Negrittos and Paleo
Mediterranean.
1.Negritto racial group is especially applicable to Andaman Nicobar Islands however also
incorporate the tribal communities of southern hills in the peninsular interiors.They are referred
to be the black short heightened people and possibly the first influx of population stream in the
analysis of racial diversity in India.
2.Paleo Mediterranean racial group are referred as true Dravidian .They are correlated to
initiation of agriculture activities in the peninsula.
Proto Australoid: are the central Indian dwellers in the analysis of racial diversity in India. They
form the transitional racial belt between True Dravidian and true Aryans. This racial group have
been related to the Indus valley civilization and thereby the cultural significance of inducing
agrarian and urban characteristics in the cultural advancement of the country.
Mongoloid racial group: marked the second phase of dominating population influx in the
temporal sequence .They are applicable majorly to the northern mountain wall where in North-
Western Himalayas denotes the dominance of Paleo Mongoloids whereas for North-Eastern
states racial category is dominated as Tibeto-Mongoloid .
The true Aryans extra peninsular dwellers incorporates 3 sub racial divides
1. Dinaric Caucasoid typical to western India
2. True Mediterranean East Indian dwellers
3. Dominating Aryan race Nordics in near total northern plains of country.
Characteristics of industry
Industry is classified into different sectors - secondary, tertiary and quaternary. The employment
structure of a country shows how the labour force is divided into the different sectors.
Classification of industry
Secondary industry

Factory
Secondary industries are those that take the raw materials [raw
material: Anything naturally occurring in or on the earth / in the
sea before being processed. These are obtained through primary
activities such as mining, fishing, forestry and farming. ]
produced by the primary sector and process them into
manufactured [manufactured: Articles or goods produced by
workers in secondary industries from raw materials. ] goods and products.
Examples of secondary industries include heavy manufacturing [heavy manufacturing:
Industries like steel-making or textile production that are dependant on heavy raw materials (eg
coal and iron) and produce bulky goods. ], light manufacturing [light manufacturing:
Manufacturing where both the raw materials and final goods are less bulky and can be easily
transported. Examples of light industries include food processing and household electrical
goods. ], food processing, oil refining and energy production.
Tertiary and quaternary industry
The tertiary sector is also called the service sector and involves the selling of services and skills.
They can also involve selling goods and products from primary and secondary industries.
Examples of tertiary employment include the health service, transportation, education,
entertainment, tourism, finance, sales and retail [retail: The commercial selling of goods and
products. ].

Royal Victoria Hospital, Belfast

The biggest area of expansion in the tertiary sector in the UK has
been in financial and business services. According to
government statistics, 25 years ago one in ten people worked in
this industry, now it is 1 in 5.
The quaternary sector consists of those industries providing
information services, such as computing, ICT (information and
communication technologies), consultancy (offering advice to businesses) and R&D (research,
particularly in scientific fields).
The quaternary sector is sometimes included with the tertiary sector, as they are both service
sectors. The tertiary and quaternary sectors make up the largest part of the UK economy,
employing 76 per cent of the workforce.
Comparing employment structures
The employment structure of a country shows how the labour force is divided between the
primary, secondary and tertiary sectors. Different countries have different employment
structures. The employment structure of a given country can tell you quite a lot about its
economy.
In the richest countries, for example, there will usually be more people working in the
tertiary/quaternary sector than in the primary and secondary sectors. In the poorest countries,
there tend to be more people working in the primary sector than in either the secondary or tertiary
sectors.
Look at the diagram below. Based on the employment structure, which countries do you think
are the richest and poorest?

In the richest country

(USA), most people work
in the tertiary sector. In
the poorest country
(Nepal), most people work
in the primary sector. In
Brazil, the labour force is
more evenly distributed
between the three
sectors.
Note that the quaternary
sector has been included in the tertiary sector.
Changing employment structures over time
Employment structures can also change over time within the same country.
In the UK in 1,800 most people would have been employed in the primary sector. Many people
worked on the land, and made their living from agriculture and related products.
During the industrial revolution [industrial revolution: In Britain in the 1800s many new
inventions changed industry rapidly, and changed the way people worked. ], more people were
needed to build ships, work in steel making and with textiles. All of these jobs are found in the
secondary sector. By 1900 over half of the workers in the UK were employed in secondary
industries.
Since 1900 mechanisation [mechanisation: In industry where machines carry out tasks which
humans used to do. ] meant that less people were required to work on the land and in industry, as
machines could carry out most of the work that people previously did.
Foreign industries also became more competitive and imports [import: A good or service which
enters a country. ] such as coal became more affordable. As the availability of coal declined in
the UK, and also became more expensive to extract more coal was imported [import: A good or
service which enters a country. ]. This led to a further decline in primary sector employment in
the UK.
The demand for work increased in schools, hospitals and retail [retail: The commercial selling
of goods and products. ] industries. Many people left the rural areas in the search for jobs in the
towns and cities. By the year 2000 over half of the UK workforce were employed in tertiary
[tertiary: Providing services and includes retail, tourism, education, health and banking. ]
industries and only a small number were employed in primary industries. This has changed the
work that people do, and also where they work. Quaternary [quaternary: The research and
development sector of industry. ] industries are a relatively new concept, and it is only recently
that they have been added to these figures. However it is becoming an important and growing
sector in the UK as many firms want to carry out research and development for their products.

Line graph to show the UK employment structure from 1800 2000

Industrial location factors
Different industries require different inputs [input: Everything that goes into a system. The three
most common inputs in industry are physical inputs, labour and capital. ]. Industries are more
likely to locate where these inputs are readily and cheaply available. Factors that influence where
an industry locates include:
power supply

communications - including transport, telecommunications

labour supply - including workers with the right skills

access to market - where the goods are sold

grants and financial incentives - usually from governments

raw materials
Use the activity below to check your understanding of how these factors affect industrial location
decisions. Work out where on the map would be the best site for each company and then click on
that location.
Agglomeration and footloose industries
These are two 'special cases' of industrial location.
Agglomeration is when a number of producers in the same or related industries group themselves
together. They do this to benefit from local skill pools, economies of scale or the prowess of a
locality in a particular field. An example is the large number of financial services companies (eg
banks and insurance companies) which are headquartered in the City of London.
Footloose industries are those that are less dependent on factors that tie them to a specific
geographical location. Unlike manufacturing industries, tertiary or services, companies do not
have to be near a source of raw materials. As long as they have suitable transport, energy and
communications links, they can locate themselves virtually anywhere in the world. Examples of
footloose industries are computer software development, telephone sales and call centres.
Hydrogen Bomb
Atom bombs release energy by fission, or breaking apart, of heavy atomic nuclei like uranium
and plutonium, while A hydrogen bomb releases energy by fusing together light nuclei
like tritium or deuterium, converting even more matter into energy.
Fusion powers the Sun and stars as hydrogen atoms fuse together to form helium, and matter is
converted into energy. Hydrogen, heated to very high temperatures changes from a gas to a
plasma in which the negatively-charged electrons are separated from the positively-charged
atomic nuclei (ions). Normally, fusion is not possible because the strongly repulsive electrostatic
forces between the positively charged nuclei prevent them from getting close enough together to
collide and for fusion to occur. However, if the conditions are such that the nuclei can overcome
the electrostatic forces to the extent that they can come within a very close range of each other,
then the attractive nuclear force (which binds protons and neutrons together in atomic nuclei)
between the nuclei will outweigh the repulsive (electrostatic) force, allowing the nuclei to fuse
together. Such conditions can occur when the temperature increases, causing the ions to move
faster and eventually reach speeds high enough to bring the ions close enough together. The
nuclei can then fuse, causing a release of energy.
Basics of Hydrogen Bomb
First, the stages of the weapon are separated into a triggering, primary explosive and a much
more powerful secondary explosive.
After this, the secondary explosive is compressed by X-rays coming from the nuclear fission of
the primary explosive. This process is called the radiation implosion of the secondary
explosive.
Finally, the secondary explosive is heated, after cold compression, by a second fission explosion
that occurs inside the secondary explosive.
Differences between Hydrogen bomb and Atom bomb.
A Hydrogen bomb is a much more powerful atomic weapon.
The energy released in a Hydrogen bomb is several magnitudes higher than an Atom bomb.
Hydrogen bombs can devastate whole cities in one explosion.
A Hydrogen bomb derives its energy through the fusion of atoms. An Atom bomb derives its
energy from fission.
Nuclear fusion and nuclear fission are different types of reactions that release energy. In fission,
an atom is split into 2 or more smaller, lighter atoms. Fusion, in contrast, occurs when 2 or more
atoms fuse together, creating a larger, heavier atom.
A fusion bomb is more sophisticated and difficult to make, since it requires a much higher
temperature in the order of millions of degrees centigrade. So a fission is carried out first to
produce more energy, which is then used to initiate fusion. In a fusion bomb, a fission device has
to be triggered first.
It is easier to make Hydrogen bombs in small size, so it is easier to place them in missiles.
Hiroshima and Nagasaki both were atomic bombs and till date Hydrogen bombs have never
been used in war.
Indias Cotton & Textile Industry : Main Points
Indias textile and clothing industry contributes 4% per cent to Gross Domestic Product, 14 per
cent in industrial production and 12 per cent in export earnings.
It is the second largest industry providing employment after agriculture. It provides
employment to around 35 million people.
Contents
First Cotton Mill of India
Adverse Effects of Partition on Cotton Industry
Development Starts
Cotton Association of India
Cotton Price Index
Leading States
Main Competitors of India
Technology Upgrdation Fund Scheme (TUFS)
Scheme for Integrated Textile Park (SITP)
National Textile Policy
Strengths of Indian textile Industry
Technology Mission on Cotton
Some important Schemes for Handloom Development
Apparel Export Promotion Council:
Decade of manufacturing
Objectives of the Eleventh Plan for Textile Industry:
First Cotton Mill of India
The first Indian cotton cloth mill was established in 1818 at Fort Gloaster near Kolkata, albeit
this mill was a failure.
The second mill which was established by KGN Daber in 1854 is called the true foundation of
modern cotton industry in India. Its name was Bombay Spinning and weaving Company,
Bombay.
Adverse Effects of Partition on Cotton Industry
Partition of India in 1947 affected Indian cotton industry badly. Most of the weavers who were
Muslims migrated to Pakistan. There were 394 cotton mills in India before partition , out of this
14 mills went to Pakistan. Remaining 380 mills which were left in India. However 40 % cotton
producing area became area of Pakistan. Thus India was forced to import raw cotton to keep
the mills alive.
Development Starts
Till the year 1985, development of textile sector in India took place in terms of general policies.
In 1985, for the first time the importance of textile sector was recognized and a separate policy
statement was announced with regard to development of textile sector.
In 1993, Govt. of India made this industry license free by its Textile Development and regulation
Order 1993.
Cotton Association of India
Cotton Association of India was established in the year 1921 with a view to facilitate cotton
trade and regulate cotton futures in Mumbai. Since then, CAI has been playing a pivotal role in
development and promotion of cotton across India. In 1952, CAI was granted permanent
recognition for conducting futures trading in cotton throughout India. Formerly known as East
India Cotton Association, it was redesignated as Cotton Association of India in August 2007.
Cotton Price Index
Cotton Price Index was launched by Cotton Association of India on the lines of ICE futures in US
and Cotlook in UK. It will be an independent index of cotton prices in India.
Leading States
In India the cotton and man made fibre industry is concentrated mainly in Maharastra, Tamil
nadu and Gujarat.
Main Competitors of India
The main competitors of India in the textile exports are China, Pakistan & Bangladesh.
Meera Seth Committee was related to development of Handloom sector which submitted its
report in 1997. This committee recommended the establishment of national handloom fund of
Rs. 500 crore.
Technology Upgrdation Fund Scheme (TUFS)
The Government of India (GOI), Ministry of Textiles (MOT), introduced Technology Upgrdation
Fund Scheme (TUFS) for Textile and Jute Industries on April 1, 1999, for a period of 5 years,
subsequently extended by 3 years to cover sanctions up to March 31, 2007. The Budget for FY
2007-08 has announced further extension of the Scheme by five years i.e to last til, FY 2011-12.
Post-extension, the Scheme is under revision and sanctions w.e.f April 1, 2007, have been kept
in abeyance under TUFS. Rs. 3140 crore have been alloted in Union Budget 2009-10 for this
scheme. The Scheme is intended to facililate induction of state-of-the-art or near state-of-the-
art technology. Existing units with or without expansion and new units are eligible under TUFS.
Scheme for Integrated Textile Park (SITP)
To provide the industry with world-class infrastructure facilities for setting up their textile units,
the Scheme for Integrated Textile Park (SITP) was approved in July 2005 to create new textile
parks of international standards at potential growth centres. As per the target for the 10th Five
Year Plan, 30 Textiles projects have been approved. There has been overwhelming response to
the scheme. Taking into consideration the response to the scheme and the opportunities for
the growth of textile industry in the quota free regime, the Government of India have decided
to continue the SITP in the 11th Five Year Plan. This will facilitate additional investment,
employment generation and increase in textiles production. In the Union Budget 2009-10 , Rs.
397 crore were provided for this scheme.
National Textile Policy
In the year 2000, National Textile Policy was announced. Its main objective was: to provide cloth
of acceptable quality at reasonable prices for the vast majority of the population of the country,
to increasingly contribute to the provision of sustainable employment and the economic growth
of the nation; and to compete with confidence for an increasing share of the global market. The
policy also aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010
of which the share of garments will be US $ 25 billion.
Strengths of Indian textile Industry
India has rich resources of raw materials of textile industry.
Technology Mission on Cotton
In order to consolidate the strength in raw material especially the cotton sector and to remove
contamination, the Government had set up the Technology Mission on Cotton (TMC) on 20th
February 2000. The Mission, consisting of four Mini-Missions, was intended to run for a 5-year
term, commencing from 1999-2000. It has since been extended by 3 years to cover the entire
Tenth Plan period, ending with 2006-07
Some important Schemes for Handloom Development
Deen Dayal Hathkargha Protsahan Yojna , Workshed cum housing scheme , Weavers welfare
Scheme , Health Insurance Scheme for handloom weavers , The Mahatma Gandhi Bunkar Bima
Yojna , The integrated Handloom Cluster development Scheme
Apparel Export Promotion Council:
AEPC was incorporated 1978 and is the official body of apparel exporters in India that provides
invaluable assistance to Indian exporters as well as importers/international buyers who choose
India as their preferred sourcing destination for garments.
Sponsored by the Ministry of Textiles to monitor garment exports and quotas APEC also
provides online trading, news, quota circulars, EXIM. Over the last 25 years, the council has been
continuously involved in the task of promoting exports by organising buyer-seller meets, leading
trade delegations to potential markets globally, participating in specialized international fairs,
organising the India International Garment Fair biannually, and organizing seminars on fashion
and workshops on technical aspects of the industry
Twice a year, AEPC showcases the best of Indias garment export capabilities through the
prestigious India International Garment Fair, playing host to over 350 exhibitors displaying
the exotic, the haute, the prt, the contemporary and much more.
Decade of manufacturing
The decade 2006-2015 is the decade of manufacturing for India. The National Manufacturing
Competitive Council (NMCC) has emphasized on the need for focused attention to the specified
sectors of the manufacturing which are labor intensive and also enjoy competitive advantage.
The textile and clothing industry is identified as one such sector. The Working Group has
suggested a plan of action including higher plan outlay to enable this industry to realize its full
potential during this Plan period.
Objectives of the Eleventh Plan for Textile Industry:
Build up world class state-of-the-art manufacturing capacities to attain and sustain
predominant global standing in manufacture and export of textiles and clothing.
2. Facilitate Indian textile industry to grow at the rate of 16 percent in value terms to reach level
of US$ 115 billion (comprising of US$ 55 billion of exports and US$ 60 billion of domestic
market).
3. Attain the 7 percent share in global textile trade by the terminal year of the Plan period.

MCQs
Q.1. Which of the following is/are regions of Tropical forest and mangaroves?
1. Western Ghats
2. Andaman Nicobar Islands
3. West Bengal
Select the correct answer from the following codes
a. Only 3
b. Only 1 and 2
c. Only 2 and 3
d. 1,2 and 3
Answer: a
Explanation: The Western Ghats and the Andaman Nicobar Islands have tropical rain
forests, the deltaic regions have tropical forests and mangroves; Himalayan heights are
marked with temperate vegetation;
Q.2 Consider the following statements
1. Natural vegetation depends on variation in climate alone.

2. Tropical evergreen forest are found in eastern slopes of western ghats.

Select the correct answer from the following codes

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer: d
Explanation: Tropical evergreen forest are found in the western slope of the Western
Ghats, hills of the northeastern region and the Andaman and Nicobar Islands.
Depending upon the variations in the climate and the soil, the vegetation of India
changes from one region to another.

Q.3 Which of the following is/are features of tropical evergreen forest?

1. Annual precipitation of over 200 cm
2. No definite time for trees to flowering

3. Absence of stratification
Select the correct answer from the following codes
a. Only 1
b. Only 1 and 2
c. Only 2 and 3
d. 1,2 and 3
Answer: b
Explanation: Tropical evergreen forest are found in warm and humid areas with an
annual precipitation of over 200 cm and mean annual temperature above 22oC. Tropical
evergreen forests are well stratified, with layers closer to the ground and are covered
with shrubs and creepers, with short structured trees followed by tall variety of trees. In
these forests, trees reach great heights up to 60 m or above. There is no definite time
for trees to shed their leaves, flowering and fruition. As such these forests appear green
all the year round.

Q.4 Flora species like ebony and aini are found in which type of natural
vegetation?
a. Tropical semi evergreen forest
b. Tropical evergreen forest
c. Temperate forest
d. Tropical deciduous forest
Answer: b
Explanation: Tropical evergreen forests appear green all the year round. Species found
in these forests include rosewood, mahogony, aini, ebony, etc. Main species of semi
evergreen forests are white cedar, hollock and kail.

Q.5 Consider the following statements

1. British altered the use of forest from commercial use to conservational use.
2. Oak trees were used for construction of railways.

Select the correct answer from the following codes

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer: d
Explanation: The oak forests in Garhwal and Kumaon were replaced by pine (chirs)
which was needed to lay railway lines. The British also used timber for construction
activities as it acts as an insulator of heat. The protectional use of forests was, thus,
replaced by commercial use.

Q.6 Consider the following statements

1. British were first to clear Indian forests for cultivation.
2. British cleared forest mainly for cultivation of Indigo.
Select the correct answer from the following codes
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer: d
Explanation: Indigenous tribes of India had followed practice of slash and burn/ Jhumm
cultivation. The British were aware of the economic value of the forests in India, hence,
large scale exploitation of these forests was started. The structure of forests was also
changed. Forests were also cleared for introducing plantations of tea, rubber and coffee.
Q.7 Consider the following statements
1. Moist deciduous forest in India are found in North eastern states along foot hills of
Himalayas.
2. Teak is one of the main species of moist deciduous forest in India.

Select the correct answer from the following codes

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer: c
Explanation: The Moist deciduous forests are more pronounced in the regions which
record rainfall
between 100-200 cm. These forests are found in the north-eastern states along the
foothills of Himalayas, eastern slopes of the Western Ghats and Orissa. Teak, sal,
shisham, hurra, mahua, amla, semul, kusum, and sandalwood etc. are the main species
of these forests.

Q.8 With reference to dry deciduous forest, Which of the following is/are true?
1. Dry deciduous forest transcend into semi evergreen forest in wetter margins and on
dryer margins it transcends into Tropical thorny forest.
2. It covers areas with rainfall between 70 100 cm.
3. In India it is found in plains of Uttarparadesh, Bihar and drier areas of peninsular India
Select the correct answer from the following codes
a. Only 1
b. Only 1 and 2
c. Only 2 and 3
d. 1,2 and 3
Answer:c
Explanation: Dry deciduous forest covers vast areas of the country, where rainfall
ranges between 70 -100 cm. On the wetter margins, it has a transition to the moist
deciduous, while on the drier margins to thorn forests. These forests are found in rainier
areas of the Peninsula and the plains of Uttar Pradesh and Bihar.

Q.9 The regions in India Which have parkland landscape is/are?

1. Less rainfall regions of North Indian plain
2. Less rainfall regions of peninsular plateau
3. southern part of Rajasthan
Select the correct answer from the following codes
a. Only 1
b. Only 1 and 2
c. Only 2 and 3
d. None
Answer: d
Explanation: parkland is an area of open land with grass and trees. In the higher rainfall
regions of the Peninsular plateau and the northern Indian plain, deciduous forests have
a parkland landscape with open stretches in which teak and other trees interspersed
with patches of grass are common.

Q.10 Consider the following statements

1. Shedding leaves and appearing as vast grassland in dry seasons is feature of dry
deciduous forest.
2. Tendu trees are commonly found in Dry deciduous forest.

Select the correct answer from the following codes

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer: c
Explanation: As the dry season begins, the trees shed their leaves completely and the
forest appears like a vast grassland with naked trees all around. Tendu, palas, amaltas,
bel, khair, axlewood, etc. are the common trees of dry deciduous forests.