16 September 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – Pradhan Mantri Aawas Yojna Grameen: GS II – Government Schemes

Context:

The Union Ministry of Rural Development has developed a set of penalties that the State governments will have to pay for any future delays in the Pradhan Mantri Awas Yojana (Gramin), the government of Narendra Modi’s main rural household programme. The top four laggard States that are far behind their goals are BJP-ruled Assam, opposition-ruled West Bengal, Chhattisgarh, and Odisha.

Background:

• The IAY (Indira Awaas Yojna) rural housing programme experienced design issues, a lack of openness, leaks, favouritism, and corruption at many levels.
• With effect from April 1, 2016, IAY has been redesigned as Pradhan Mantri Awaas Yojana – Gramin (PMAY-G).

Regarding PMAY-G:

• It is one of the government of India’s flagship programmes, and it is motivated by the admirable goal of delivering “Housing for All” by the year 2022.
• The Ministry of Rural Development launched it.
• It is a social welfare programme through which the government gives money to those who are homeless and have been identified using SECC 2011 data in order to help them build a decent dwelling for their own use.
• In accordance with PMAY, the Central and State Governments have to split the cost of unit support 60:40 for plain areas and 90:10 for North Eastern and hilly states.
• By 2022, 2.95 crore PMAY-G homes with all necessary amenities are expected to be completed.

Other qualities:

• After proper verification by the Gram Sabha, beneficiaries are identified in accordance with the housing deprivation metrics and exclusion criteria established under the Socio-Economic Caste Census (SECC) 2011.
• Through convergence with other programmes like the Swachh Bharat Mission, the PM Ujjwala Yojana for supplying LPG connections, and the unskilled wage component of 90–95 days under MGNREGA, the programme envisioned offering additional amenities to make it an aspirational house for the recipients.
• Assistance for the building of restrooms in the sum of Rs. 12,000 through SBM-G, MGNREGS, or any other specific financial source.
• assisting recipients who are prepared to do so in applying for loans from financial institutions for amounts up to Rs 70,000.

Challenges:

• The statewide lockdown brought on by the COVID-19 outbreak has slowed the pace of rural house construction under the Pradhan Mantri Awas Yojana-Gramin.
• Delays can also be attributed to beneficiary refusal, migration, beneficiaries’ deaths without legal heirs, and state or UT delays in allocating land to landless beneficiaries.
• The lack of construction labour, supplies, and time to inspect the various stages of house construction all had an impact on implementation at the ground level.

Initiatives to guarantee the scheme’s smooth operation:

Source The Hindu

2 – Inflation: GS II – Indian Economy

Context:

• The National Statistical Office’s most recent retail inflation numbers serve as a grim reminder that policymakers’ biggest obstacle to steering Asia’s third-largest economy toward a more lasting recovery from the pandemic-induced recession continues to be increasing price increases. The Consumer Food Price Index, which tracks increases in food prices, increased at a significant 93 basis points faster rate in August than it did in July, moving from 6.69 percent to a provisional 7% annual rate of inflation. In contrast to the 0.50% and 0.46% rates of urban inflation, month-to-month fluctuations in food costs and overall inflation were noticeably higher for rural consumers, at 0.88% and 0.57% respectively. The fact that cereal costs, which are fundamental foods in every household, increased from the previous month’s 6.9% rate to 9.57% is especially concerning. The pace was a concerning 2.4% month over month. Despite the recent imposition of tariffs and other restrictions on the export of non-Basmati rice by the Centre, the outlook for inflation in this category of “heavyweight” foods remains far from encouraging. The kharif sowing of rice this year undershot last year’s acreage, and uneven rainfall distribution further complicated the crop’s production picture. In fact, the prices of eight out of the 12 food items that make up the CPI’s food and beverage category increased sequentially, with vegetables (up 13.2% annually and 2.5% monthly) and dairy (up 6.39 and 0.9% respectively) being two additional important foods that accelerated inflation.
• The increase in costs of the majority of daily or commonly used products and services, such as food, clothing, housing, leisure, transportation, consumer staples, etc., is referred to as inflation. A basket of goods and services is used to calculate inflation by tracking the average price change over time. Deflation is the opposite and uncommon decline in this basket’s price index. The loss of the purchasing power of a unit of a nation’s currency is referred to as inflation. Percentage is used to express this.

Inflationary factors include:

• High demand and low production or supply of certain goods creates a demand-supply imbalance, which raises prices as a result of increased consumption. Additionally, increased exports devalue the rupee. Additionally, inflation results from the overuse of money since it loses its purchasing value. People tend to spend more when they have more money, which increases demand.
• Cost Pull inflation is brought on by a lack of production-related inputs, such as labour, land, and capital, as well as by hoarding-induced artificial scarcity. For instance, in May 2021, the price of Brent crude exceeded the $65 per barrel mark, more than doubling from the previous month. Vegetable oils are a significant import, and their price rose by 57% to a decade-high in April 2021. The cost of international freight is rising, and metal prices are close to their highest levels in ten years.

Source The Hindu

3 – SCO: GS II – International Organizations

Context:

• Prime Minister Narendra Modi will be in Samarkand, Uzbekistan, for the first Shanghai Cooperation Organization (SCO) meeting to be held in person since the COVID-19 epidemic.
• A permanent multinational intergovernmental organisation is the SCO.
• Keeping the peace, security, and stability in the area is the goal of this Eurasian political, economic, and military institution.
• In 2001, it was founded. In 2003, the SCO Charter came into effect after being signed in 2002.

Genesis:

• The Shanghai Five, which included Tajikistan, China, Kyrgyzstan, Kazakhstan, and Russia, existed prior to the establishment of the SCO in 2001.
• The Shanghai Five (1996) was the result of several boundary delineation and demilitarisation negotiations between China and the four former Soviet republics to maintain peace along the boundaries.
• The Shanghai Five became known as the SCO after Uzbekistan joined the group in 2001.
• Pakistan and India joined in 2017.
• It was reported that Iran would join the SCO as a full member on September 17, 2021.
• The top SCO body, the Heads of State Council, decides how the organisation will operate internally, interact with other States and international organisations, and take into account global challenges.
• The Heads of Government Council approves the budget and deliberates on matters relating to the interaction of economic sectors within the SCO.
• The Council of Ministers of Foreign Affairs: Examines topics pertaining to daily operations.
• To combat terrorism, separatism, and extremism, the Regional Anti-Terrorist Structure (RATS) was created.

Source The Hindu

4 – Eastern Economic Forum: GS II – International Organizations

Context:

• From September 5 to 8, Russia sponsored the seventh Eastern Economic Forum (EEF) in Vladivostok. The four-day conference provides business owners with a platform to grow their enterprises in Russia’s Far East (RFE).

About the “EEF”:

• Vladimir Putin, the president of the Russian Federation, issued an executive order establishing the Eastern Economic Forum in 2015.
• It encourages the growth of international collaboration in the Asia-Pacific region as well as the economic development of Russia’s Far East.
• It occurs every year in the Russian city of Vladivostok.
• It serves as a forum for the debate of important global economic issues, regional integration, the growth of new industrial and technology sectors, as well as the international difficulties that Russia and other countries are currently facing.
• It has developed into a global forum for discussion of the approach to strengthening political, economic, and cultural connections between Russia and the Asia Pacific over time.

Participants:

• The Forum’s business agenda features numerous commercial discussions with important partner nations in the Asia-Pacific area as well as with ASEAN, a crucial organisation for Southeast Asian countries that are rapidly rising.

About the Far East:

• Russia’s Far East is its most eastern region.
• It shares borders with five nations—China, Japan, Mongolia, the United States, and the Democratic People’s Republic of Korea (DPRK)—and two oceans—the Pacific and the Arctic.
• More over a third of the country is comprised of the Far Eastern Federal District.
• Natural resources such diamonds, stannary, borax minerals, 50 gold, tungsten, and fish and shellfish are abundant in the Far East.
• Here are located around one-third of the nation’s coal reserves and hydro-engineering resources.
• 30% of Russia’s total forest area is made up of the forests in the region.

India’s Interest in the EEF:

• Beyond friendly relations and shared history, India also serves as a significant market for the Russian arms industry.
• India and Russia formed a joint venture in March to produce the renowned Kalashnikov assault guns there.
• India purchased the S-400 sophisticated air defense system from Russia in 2018.
• India wants to increase the volume of trade between the two nations.
• The discovery of hydrocarbon reserves along the Far Eastern coast of Russia is a subject of particular interest to India.

Source The Hindu