UPSC Key- June 9, 2023: Know about Monetary Policy, Onset of Monsoon, Khalistan and Canada

FRONT PAGE

RBI hits pause second time in a row, repo rate remains 6.5 %

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Key Points to Ponder:

• What’s the ongoing story– The Reserve Bank of India (RBI) Thursday left the main policy instrument, repo rate, unchanged at 6.50 per cent for the second consecutive monetary policy, giving relief to home, vehicle and other retail borrowers from an increase in equated monthly instalments (EMIs). The decision to keep the repo rate — it is the interest rate at which the RBI lends to banks in the country — unchanged was taken unanimously by the six Monetary Policy Committee (MPC) members as inflation continues to remain above the 4 per cent target. The RBI has been mandated by the government to keep consumer price index-based inflation (CPI) at 4 per cent with a band of +/- 2 per cent.

• The Reserve Bank of India (RBI) left the main policy instrument, repo rate, unchanged at 6.50 per cent for the second consecutive monetary policy-Why?

• How this unchanged monetary policy will provide relief to home, vehicle and other retail borrowers from an increase in equated monthly instalments (EMIs)?

• What happens when repo rate is increased?

• Repo rate is the rate at which central bank of a country (in our case Reserve Bank of India) lends money to whom?

• In reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from whom?

• ‘Repo rate at 6.50 per cent’-What do you understand by this?

• If Repo Rate is increased or say decreased then it impacts common people?

• Who decides the repo rate and reverse repo rate?

• How repo rate and reverse repo rate are decided?

• What is the difference between repo rate and interest rate?

• If repo rate or reverse repo rate is increased or decreased, then how it impacts savings?

• What Marginal Standing Facility?

• What is the meaning of withdrawal of accommodation?

• What does accommodative stance mean with respect to monetary policy?

• ‘While announcing the policy, RBI Governor Shaktikanta Das said the consumer price inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7 per cent in 2022-23’-What is CPI-based Inflation or Retail Inflation?

• Know the Types of Inflation like Moderate Inflation, Galloping Inflation, Hyper-Inflation, Stagflation, Deflation, Core Inflation, Headline Inflation etc.

• What are the causes of Inflation in the present situation

• How Inflation is Measured in India?

• What are the various Instruments of Monetary Policy to control Inflation?

• How Inflation is Measured in India?

• The base year of Wholesale Price Index (WPI)?

• Base Year for Consumer Price Index (CPI)?

• Impact of increase in the REPO and CRR on Money Supply on an Economy-Inflation or Deflation?

• What is Monetary Policy Framework?

• The latest monetary policy review was significant for a variety of reasons-Why?

• What are the steps taken by RBI to control inflation?

• What is Monetary policy?

• What is the primary objective of the monetary policy?

• There are two aspects to any monetary policy-What are they?

• The Monetary Policy Committee (MPC) is a Statutory Body-True or False?

• Under Section 45ZB of the amended (in 2016) RBI Act, 1934, the central government is empowered to constitute a six-member Monetary Policy Committee (MPC)- What is the Monetary Policy Committee (MPC)?

• What is the composition of Monetary Policy Committee (MPC)?

• Try to Comprehend-In any economy, the main role of the central bank is to maintain price stability. In other words, the primary goal is to contain inflation. The inflation rate for any period (month, quarter or year) is the rate at which the general price level has gone up. If the overall price level — typically calculated by an index (such as the Consumer Price Index) that has the prices of different commodities — in a particular month is 5% more than what it was in the same month last year, then inflation rate is said to be 5%. The targeted level of inflation varies from one country to another. In the US, this target is 2%. In India, the law demands RBI to target 4%. But apart from the exact target, the law also provides a comfort zone — 2% to 6% — within which the inflation can stray. These numbers are decided based on research that suggests the ideal rate of inflation most conducive to sustained economic growth. since late 2019, the RBI has rarely come close to the target rate. Worse still, the headline inflation has stayed outside the upper limit for the better part of the past 14 months.

• The amended RBI Act, 1934 provides for the inflation target be set by the Government of India, in consultation with the Reserve Bank, once in every five years-What is inflation target?

• Know about these terms-Bank Rate, Reverse Repo Rate, Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF), Marginal cost of funds based lending rate (MCLR) etc.

• New Standard for Measuring Inflation in India and Old Standard for Measuring Inflation-Key Differences

• Do You Know-Monetary policy essentially deals with the supply and cost (interest rates) of money in an economy. The RBI’s MPC meets every two months to assess the state of monetary activities, and may tweak the repo rate — the interest rate at which the RBI lends to commercial banks — in a manner that reduces price fluctuations in the economy while keeping the inflation rate (the rate at which the general price level in the economy grows) at a reasonable level.

Other Important Articles Covering the same topic:

📍Das cautious on inflation, says need to maintain ‘Arjuna’s eye’ on scenario

📍Forecast is still cloudy

📍PRESSING PAUSE

Indira assassination float in Canada: Not good for ties, says Jaishankar

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Key Points to Ponder:

• What’s the ongoing story-INDIA ON Thursday warned Canada that giving “space… to separatists, extremists” was “not good” for bilateral ties, after a video clip, being circulated on social media, showed a float that apparently celebrated the assassination of former Prime Minister Indira Gandhi. The float was reportedly part of a parade held in the Canadian city of Brampton on June 4.

• Why India warned Canada?

• Quick Recall-The 39th anniversary of Operation Bluestar, the controversial Army action to flush out Khalistani militants from the Golden Temple in Amritsar, was observed on June 6. In the lead up to it, on June 4, a parade was organised in Brampton, Ontario, in Canada.
A tableau in the 5 km-long parade seemed to celebrate the assassination of former Prime Minister Indira Gandhi – a female figure was shown in a blood-stained white saree, with the hands up, as turbaned men pointed guns at her. A poster behind the scene read “Revenge for the attack on Darbar Sahib”. The tableau drew strong reactions from India, with External Affairs Minister S Jaishankar registering his disapproval.

• What you know about the Khalistan movement?

• What are the Historical events responsible for Khalistan?

• How Khalistan movement affected or can affect Indo-Canadian relationship?

• Khalistan and Canada-Connect the dots

• ‘This is not the first time that Khalistan has figured in an India-Canada context. Nor is this the first time that the assassination of Indira Gandhi has been celebrated in Canada’-Why Pro-Khalistani elements are still there in Canada?

• Canada has for long been considered a safe haven for Khalistan supporters and militant voices accused of terrorism in India-Why so?

• Why do Canadian politicians pander to Sikh extremists?

• For Your Information-As per the 2021 Canadian census, Sikhs account for 2.1 per cent of Canada’s population, and are the country’s fastest growing religious group. After India, Canada is home to the largest population of Sikhs in the world. Today, Sikhs lawmakers and officials serve at all levels of Canada’s government, and their burgeoning population is one of the most important political constituencies in the country. In 2017, Jagmeet Singh, 39, became the first Sikh leader of a major Canadian political party when he took the reins of the left-leaning New Democratic Party (NDP).

• ‘The Khalistan movement has been a global movement from its inception’-Discuss

• What do you understand by the word “diaspora”?

• Sikh Diaspora and India-Know in detail

Other Important Articles Covering the same topic:

📍Khalistan and the Sikh Diaspora: Why a small but loud movement continues to survive in Canada

GOVT & POLITICS

EC’s remote voting plan not shelved: IIT-GN director

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Salient features of the Representation of People’s Act.

Key Points to Ponder:

• What’s the ongoing story-RULING OUT shelving of remote voting machines (RVMs), Prof Rajat Moona, director, Indian Institute of Technology, Gandhinagar (IIT-GN), who is an active member of the Technical Expert Committee of the Election Commission for electronic voting machines (EVMs), said that experts are still working on it. “It (RVMs) has not been dropped and people are still working on it. There are administrative and procedural issues more than technical ones,” said Prof Moona, who has been instrumental in defining EVMs and VVPATs and has also contributed to defining the national voter service portal and national electoral search for voters.

• Remote Electronic Voting Machine (RVM)-Know in detail

• “Migration based disenfranchisement is indeed not an option in the age of technological advancement”-Discuss

• Why Remote Electronic Voting Machine?

• Remote Electronic Voting Machine and Migrants enfranchisement-connect the dots

• What are the challenges associated with migrant voters?

• What does the term “domestic migrant” mean?

• Implementation of Remote Electronic Voting Machine-What are the Administrative, legal and technological challenges?

• ‘Remote voting’ is a voting from home-True or False?

• How ‘blockchain technology’ can be used in ‘Remote Voting’?

• What are the recent key electoral reforms proposed by Election Commission of India?

• Election Commission of India and Article 324 of the Constitution-Know in detail

• The independent and impartial functioning of the Election Commission-How it is ensured?

• Election Commission of India- Powers and Functions

• System of Election- First past the post electoral system.

• How Elections are conducted in India?

• The Constitution of India has prescribed the qualifications (legal, educational, administrative or judicial) of the members of the Election Commission-True or False?

• The Constitution has not specified the term of the members of the Election Commission-True or False?

• Chief Election Commissioner and the two other Election Commissioners have equal powers-True or False?

• In case of difference of opinion amongst the Chief election commissioner and/or two other election commissioners,
the matter is decided by the Supreme Court of India-Right or Wrong?

Other Important Articles Covering the same topic:   

📍ECI ready to pilot remote voting for domestic migrants; migrant voter need not travel back to home state to vote

THE EDITORIAL PAGE

A Manipur dead-end

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: 

• General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

• General Studies III: Linkages between development and spread of extremism and Role of external state and non-state actors in creating challenges to internal security

• General Studies III: Role of external state and non-state actors in creating challenges to internal security.

Key Points to Ponder:

• What’s the ongoing story- Pratap Bhanu Mehta writes: All parties, singly, are considered partisan. What is needed is an all-party mediation to lift the state out of a fatal zero-sum identity politics

• Manipur Violence-what you know till now?

• “The continuing violence in Manipur ought to be shocking for many reasons”-Comment

• What is Article 355 of the Indian Constitution?

• Why Article 355 imposed in Manipur?

• Even after invoking Article 355, why is the state machinery unable to control the violence in Manipur?

• “Whenever the central organising axis of politics is a distributive conflict between identity-based groups, there is a high chance of violence”-What is your take?

• For Your Information-In Manipur, the politics of distribution between Kukis and Meiteis turns on four goods whose inherent logic is zero-sum. The first is inclusion in the ST quota which is the proximate background to the current conflict. By its very nature, the inclusion of more groups in the ST quota will be a threat to existing beneficiaries. The second is land, and the tension between the valley and the hills. This is also a zero-sum resource, where protecting the land rights of Kukis is seen as foreclosing the opportunities for other groups. The third is political representation, where historically Kukis have felt dominated by the Meiteis. The fourth is patronage by the state in the informal economy, in which groups compete against one another for control of informal trade. Each state intervention in regulating trade becomes a locus of conflict.

• What is the cause of ethnic violence in Manipur?

• What was the triggering factor that escalated to so much violence in Manipur?

• ‘The participants were protesting the demand for inclusion of the state’s Meitei community in the Scheduled Tribe (ST) category, following an April 19 Manipur High Court directive’-What precisely was the Manipur High Court’s order to the State administration on April 19, 2023?

• Map Work-Manipur and adjoining States

• How many different ethnic groups are there in Manipur?

• What exactly triggered the violence in the state?

• Who are Kuki and Meitei?

• Which are the major communities residing in Manipur?

• How has the government of India attempted to reduce violence in Manipur?

Other Important Articles Covering the same topic:

📍Express View on Manipur violence: Not the court’s job

EXPRESS NETWORK

Safety first, won’t rush just to meet deadline: ISRO chief on Gaganyaan

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Awareness in the fields of IT, Space, Computers, robotics, nanotechnology, bio-technology and issues relating to intellectual property rights.

Key Points to Ponder:

• What’s the ongoing story– In a clear indication that it needed more time to execute Gaganyaan, the human spaceflight programme, the Indian Space Research Organisation (ISRO) on Thursday said the safety of astronauts was far more important than target dates. Speaking on the sidelines of an international conference on Spacecraft Mission Operations (SMOPS-2023), ISRO chairman S Somnath said the space agency had planned additional test flights before a human crew was used.

• Gaganyaan Mission-Know the key features

• Gaganyaan Mission-What makes this Mission very Unique?

• India’s Manned Mission to Space-Know in detail

• Indian Space Research Organisation (ISRO)-About the Organisation

• Do You Know-A manned space mission is very different from all other missions that ISRO has so far completed. In terms of complexity and ambition, even the missions to the Moon (Chandrayaan) and Mars (Mangalyaan) are nowhere in comparison. For a manned mission, the key distinguishing capabilities that ISRO has had to develop include the ability to bring the spacecraft back to Earth after flight, and to build a spacecraft in which astronauts can live in Earth-like conditions in space. Over the years, ISRO has successfully tested many of the technologies that are required, but many others are still to be developed and tested.

• The human spaceflight mission had initially been given a 2022 target by the Centre to coincide with 75 years of Indian independence but the programme got delayed-why?

Other Important Articles Covering the same topic:

📍What is Gaganyaan?

📍Gaganyan: How to send an Indian into space

ECONOMY

OpenAI CEO says spoke with PM on regulation

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Science and Technology- developments and their applications and effects in everyday life.

Key Points to Ponder:

• What’s the ongoing story– Prime Minister Narendra Modi held a meeting with OpenAI CEO Sam Altman and said on Friday that artificial intelligence’s potential in enhancing India’s tech ecosystem is vast, among the youth in particular. “We welcome all collaborations that can accelerate our digital transformation for empowering our citizens,” he tweeted, describing the conversation with Altman as insightful.

• What is Artificial Intelligence?

• How India is the potential market of AI?

• How is AI regulated in India?

• What is the potential economic impact of AI?

• How AI will affect Indian economy?

Other Important Articles Covering the same topic:

📍The 360° UPSC Debate: Should Artificial Intelligence Be Regulated?

EXPLAINED

The US-China thaw

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Points to Ponder:

• What’s the ongoing story– As Prime Minister Narendra Modi prepares for his June 21-24 official state visit to Washington DC, India and the United States are said to be looking at “consecrating” their relationship premised on greater alignment of goals in Asia and the Indo-Pacific. At the same time, the US appears to be inching towards a detente with China. After months of trying, Secretary of State Antony Blinken may be finally welcomed in Beijing in the coming weeks for what American media are describing as an effort by the Biden Administration to ease strained ties.

• US-China tensions have been high since the time of the Covid-19 outbreak-Why?

• “China’s aggressive behaviour at the India-China border as well as the Indo-Pacific region has brought the two countries closer”-Analyse India-China -USA relations

• ‘Over the last few years, the US and India have grown closer over a shared perception of China’s rise’-Analyse Indo-USA bilateral relations

• What is Quadrilateral Security Dialogue (QUAD)?

• Formation of Quadrilateral Security Dialogue (QUAD) and 2004 tsunami relief operations-Connect the Dots

• Know the Principles and the motive behind the Quadrilateral Security Dialogue (QUAD)

• Who are member nations in Quadrilateral Security Dialogue (QUAD)?

• What are U.S. interests in the Quad?

• What are the challenges and opportunities for QUAD in Current Scenario?

• The Term ‘Indo-Pacific’-What does it mean? Define this term in Geopolitical and in geographical context.

Other Important Articles Covering the same topic:

📍Express View: Strategic convergence between India and US is growing

BIPARJOY

Syllabus:

Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World.

Mains Examination: General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features and in flora and fauna and the effects of such changes.

Key Points to Ponder:

• What’s the ongoing story– A cyclonic storm, named Biparjoy, has developed in the Arabian Sea. On Thursday (June 8) afternoon, it was stationed about 850 km west of Goa and 900 km southwest of Mumbai. The cyclone is predicted to gain in strength over the next three days and develop into a very severe cyclonic storm by June 13. According to an Indian Meteorological Department (IMD) advisory on Thursday (June 8), the cyclone would result in squally weather with wind speeds reaching 35-45 kmph along the coastline of Karnataka, Goa and Maharashtra on Thursday, Friday and Saturday.

• How did Cyclone Biparjoy get its name and how are cyclones named?

• Is it not rare for cyclones to develop in the Arabian sea?

• Cyclone ‘Biporjoy’-Know in detail

• The cyclone ‘Biporjoy’, which is highly likely to develop into a low-pressure area, once again has scientists worried about the onset of the monsoon-why?

• What is the difference between Arabian Sea cyclone and Bay of Bengal cyclone?

• How Cyclone ‘Biporjoy’ will affect Monsoon?

• Why Bay of Bengal Receives more Cyclone than Arabian Sea?

• What is Cyclone?

• What do you understand by the term “depression,” mostly used in Cyclone?

• For Your Information-A “Cyclonic Storm’ or a “Cyclone” is an intense vortex or a whirl in the atmosphere with very strong winds circulating around it in anti-clockwise direction in the Northern Hemisphere and in clockwise direction in the Southern Hemisphere. Tropical cyclones are also referred to as ‘Hurricanes’ over Atlantic Ocean, ‘Typhoons’ over Pacific Ocean, ‘Willy-Willies’ over Australian Seas and simply as ‘Cyclones’ over north Indian Ocean (NIO).

• Classification of cyclonic disturbances-how they are classified?

• Cyclone and Super Cyclone-Compare and Contrast

• Cyclone and Anti-Cyclone-Compare and Contrast

• Types of Cyclones or Classification of Cyclones-Know in detail

• What are the Stages of Formation of Cyclones?

• Structure of Tropical Cyclone-Know in detail

• What are Air Masses and Fronts? How they associated with the formation of Cyclones?

• What is eye of the Cyclone?

• What is the average lifespan of a cyclonic storm?

• Storm Intensity, Expected Damage and Suggested Actions-Know in detail

• Deep Depression (DD), Cyclonic Storm (CS), Severe Cyclonic Storm (SCS), Very Severe Cyclonic Storm (VSCS), Extremely Severe Cyclonic Storm (ESCS) and Super Cyclone (SuCS)-how they are different?

• India’s Vulnerability to Cyclones-Know in Detail

• The IMD issues warnings in four stages for the Indian coast-What are they?

• World Meteorological Organisation (WMO)-About, Role, Vision and Mission

• India Meteorological Department (IMD)-About, Role, Vision and Mission

Other Important Articles Covering the same topic:

📍Development of cyclone ‘Biporjoy’ over Arabian Sea may delay monsoon outset in Kerala

📍Cyclone Mocha building over Bay of Bengal, says IMD: How are cyclones formed and named?

What ‘onset’ of monsoon means, and why a delay is not always bad news

Syllabus:

Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World.

Mains Examination: General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features and in flora and fauna and the effects of such changes.

Key Points to Ponder:

• What’s the ongoing story– The southwest monsoon has set in over the Kerala coast, the India Meteorological Department (IMD) said on Thursday (June 8). This year, along with 2016 and 2019, is the most that the monsoon’s onset has been delayed in the last couple of decades — the rains hit the Kerala coast on June 8 in those two earlier years as well. In 2022, the monsoon arrived over the Kerala coast on May 29, earlier than its expected date.

• What is meant by the “onset of the monsoon” over the Kerala coast?

• What are these conditions, which determine the onset of monsoon?

• Is a delay in the onset of the monsoon unusual?

• Monsoon mechanism in India-Know in detail

• How Arabian Sea branch and Bay of Bengal branch are associated with Indian monsoon?

• What is difference between Arabian Sea branch and Bay of Bengal branch?

• A cyclone is all set to form in the Arabian Sea, the India Meteorological Department (IMD) has said. What cyclone is IMD warning about?

• Does a delayed onset mean cascading delays across the country and for the rest of the season?

• Does it therefore mean that an early onset would not necessarily mean a good
monsoon?

Other Important Articles Covering the same topic:

📍8 days late, monsoon hits Kerala, likely to soon cover parts of region

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