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COM
1
 INDEX

Editorial
• Self Confidence Brings Success…............................................................................03

SECTION - 1: Articles
• Moon Mission Chandrayaan-I ................................................................................04
• Doha Talks ...............................................................................................................19
• Hindi Article: ( ¤ÉÉ±É ¸É¨É =x¨ÉÚ±ÉxÉ )..................................................................................26

SECTION - 2: Hot Topics

PSLV-C14 Successfully Launched Oceansat-2 ............................................................32

SECTION - 3: Current Relevant Facts.....................................................................36

SECTION -4: Sports ...............................................................................................50
SECTION -5: Awards...............................................................................................55

SECTION - 6: Mains Special

• Science & Technology ..............................................................................................58
• Social Problems & Welfare Schemes........................................................................85
• Economy ...............................................................................................................103

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2
Self Confidence Brings Success…

Now that you may be sitting for the IAS mains examination this year, I am sure all of you
must have read many books, notes, magazines etc; and must have made very good plan
for your studies. But still many of you feel, a certain type of unprepared-ness, fear and
memory-wash.
You need self-confidence!
Through self-confidence, you can keep all your studies with you and utilize all your
potential in the examination. No doubt, during your long preparation, you have gained
a lot, learnt a lot, But now you have to keep all your treasure intact and utilize them fully
in the examinations.

At this juncture self-confidence is vital. Forget all negative points and enhance only and
only positive things. You need to choose optimism! You need to rectify your
fears and surround yourself with positive people. It will provide you a positive state of
mind, self-confidence and ultimately success.

We are doing our best to provide you important materials for Mains Examinations. In
the seventh volume, you will find Science & Technology, Social Problems & Welfare
Schemes and Economy under the IAS (main) Special Column. If you read them care-
fully, I am sure you will gain your confidence. There are articles on Moon Mission
Chandrayaan-I, Doha Talks and ¤ÉÉ±É ¸É¨É =x¨ÉÚ±ÉxÉ (in Hindi). PSLV-C14 Successfully
Launched Oceansat-2 is written as the hot topic of month. Besides all these, you will
have usual columns like Current Affairs and Sports & Awards.

I have full confidence in you and your ability and you will also keep it on. We are sure
many of our members will emerge as a winner.

Keep up the Hard Work...

Editor: R. K. Pandey
with UPSCPORTAL.COM Team

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3
 Section -1 (Article : Moon Mission Chandrayaan - I)
Moon Mission Chandrayaan-I
End of Task with Affirmative Approach
Radio contact with Chandrayaan-I spacecraft was
abruptly lost at on August 29, 2009 while India’s
space agency ended an $82 million mission to map
the surface of the moon after failing to restore con-
tact with its unmanned Chandrayaan I craft on
Aug. 31,2009. It may be recalled that
Chandrayaan-I space-
craft was launched from
Satish Dhawan Space
Centre Sriharikota on
October 22, 2008 .The
Spacecraft has com-
pleted 312 days in orbit
making more than 3400
orbits around the Moon
and providing large vol-
ume of data from so-
phisticated sensors like
Terrain Mapping Cam-
era, Hyper-spectral Im-
ager, Moon Mineralogy
Mapper etc., meeting
most of the scientific objectives of the mission.
India’s space program has come a long way since
it was established in 1962 as the Indian National
Committee on Space Research (INCOSPAR). Its
successor, the Indian Space Research Organisation
(ISRO), was set up in 1969, and six years later their
first satellite, Aryabhata, was launched. Since then
ISRO has matured into one of the “Big Three”
Asian space agencies, alongside China’s CNSA and
Japan’s JAXA. It is a significant partner in many
international space projects.
The first ISRO Moon probe, Chandrayaan 1, was
an important step away from ISRO’s previous fo-
cus on practical space technology applications,
such as remote sensing, communications, distance
learning, telemedicine, and security. These efforts
were all aimed at supporting India’s national de-
velopment goals. For many years the feeling was
that everything they did had to have a direct pay-
off for the people and particularly for the impov-
erished masses. The mission was the first pure
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By R. K. Pandey
space science mission the Indian agency had even
done.
The Insat series of communications satellites and
the unique weather sensors that they carry are a
good example of ISRO’s traditional approach.
These satellites were at
first launched mostly by
Europe’s Ariane and are
now being put into or-
bit by India’s own Geo-
synchronous Space
Launch Vehicle
(GSLV). The technol-
ogy for the spacecraft
themselves was almost
entirely homegrown.
ISRO’s policy was to use
as little foreign input as
possible, both in order
to develop their own in-
dustrial base and-so
they claimed-to hold down costs.
Chandrayaan 1 represented a major break from
that tradition. It incorporated instrument pack-
ages from Britain, Germany, Russia, Sweden, and
the US, as well as from India itself. This repre-
sented a major step forward in India-US coopera-
tion. Overcoming the bureaucratic and political
obstacles that have long stood in the way of such
bilateral programs was a major achievement for
all involved. On the US side breaking through the
International Traffic in Arms Regulations (ITAR)
restrictions was only accomplished with a lot of
hard work on the part of both NASA and the State
Department. It would never have been possible
without a commitment from the highest levels of
government: former President George W. Bush
and former Prime Minister A.B. Vajpayee deserve
a lot of credit in this regard.
Chandrayaan 2, scheduled for launch in 2011, is
a lander/rover mission that ISRO is developing
with some technological input from Russia. This
4
 Section -1 (Article : Moon Mission Chandrayaan - I)
summer they plan to ask the international scien-
tific community for proposals for sensors and ex-
periments to include on the rover. This may be a
difficult because the final configuration of the mis-
sion has not yet been determined. The rover may
weigh anywhere from 30 to 100 kilograms. Obvi-
ously there is quite a bit of “trade space” so the
proposals, or at least the early ones, will have to
include more than a bit of guesswork.
To meet the anticipated launch date India and its
partners will have to work within some serious
time constraints. By space mission standards 2011
is right around the corner and system integration
has got to start as soon as possible. The Indian
government has approved funding for the mission
and for the advanced version of the GLSV launcher
needed to get the probe onto the lunar surface.
Along with their recently announced independent
manned space exploration program the
Chandrayaan series of science missions show that
India is determined to be a space power in the full
sense of the term. This flows naturally from India’s
emergence as a global economic and political
power. Over many decades hundreds of thousands
of high-quality scientists and engineers have been
trained in Indian universities. These men and
women have helped propel India to its new sta-
tus, and giving them challenging and fascinating
new space projects is a way for the Indian gov-
ernment to keep this talent at home and busy.
It will be interesting to see how ISRO uses the
Russian technology that they are getting for
Chandrayaan 2. We should also keep an eye on
the laser imaging system that is being developed
for the rover. Integrating these systems into the
mission is not going to be easy, but if India pulls it
off it will be an even more impressive achieve-
ment than Chandrayaan 1.
Unmanned Chandrayaan 1
The unmanned Chandrayaan 1 spacecraft blasted
off smoothly from a launch pad in southern
Andhra Pradesh to embark on a two-year mission
of exploration on 22 oct 2008. The robotic probe
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has revolved the Moon, compiling a 3-D atlas of
the lunar surface and mapping the distribution of
elements and minerals.
The launch is regarded as a major step for India as
it seeks to keep pace with other space-faring na-
tions in Asia.
Competitive Mission
An Indian-built launcher carrying the one-and-
a-half-tonne satellite blasted off from Satish
Dhawan Space Centre in Sriharikota, an island off
the coast of Andhra Pradesh.
One key objective was be to search for surface or
sub-surface water-ice on the Moon, especially at
the poles. Another was be to detect Helium 3, an
isotope which is rare on Earth, but is sought to
power nuclear fusion and could be a valuable
source of energy in future.
Powered by a single solar panel generating about
700 Watts, the Indian Space Research
Organisation (ISRO) probe carried five Indian-
built instruments and six constructed in other
countries, including the US, Britain and Germany.
The mission is expected to cost 3.8bn rupees
(£45m; $78m), considerably less than Japanese and
Chinese probes sent to the Moon last year.
The Indian experiments included a 30kg probe that
will be released from the mothership to slam into
the lunar surface. The Moon Impact Probe (MIP)
has record video footage on the way down and
measured the composition of the Moon's tenuous
atmosphere. It was also dropped the Indian flag
on the surface of the Moon. The country's tricolour
was painted on the side of the probe and, if suc-
cessful, India has become the fourth country af-
ter the US, Russia and Japan to place its national
flag on the lunar surface.
C1XS mapped the abundance of different elements
in the lunar crust to help answer key questions
about the origin and evolution of Earth's only
natural satellite.
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 Section -1 (Article : Moon Mission Chandrayaan - I)
The relative abundances of magnesium and iron
in lunar rocks could help confirm whether the
Moon was covered by a molten, magma ocean
early on in its history.
The instrument has to look for more unusual ele-
ments on the Moon's surface, such as titanium.
This metallic element has been found in lunar
meteorites, but scientists know little about its dis-
tribution in the lunar crust.
Chandrayaan (the Sanskrit word for "moon craft")
also investigated the differences between the
Moon's near side and its far side. The far side is
both more heavily cratered and different in com-
position to the one facing Earth.
The spacecraft took about eight days the reach
the Moon. During its lunar encounter,
Chandrayaan fired its engine to slow its velocity -
allowing it to be captured by the Moon's gravity.
Chandrayaan then slipped into a near-circular or-
bit at an altitude of 1,000km. After a number of
health checks, the probe has drop its altitude un-
til it is orbiting just 100km above the lunar sur-
face.
Next Step
The next step in the lunar mission, the
Chandrayaan II, which aims to land an unmanned
rover on the moon’s surface to prospect for chemi-
cals, won’t be delayed. India will launch a mis-
sion to Mars within four to six years.
The craft was designed to orbit the moon for two
years at an altitude of 100 kilometers (62 miles).
It will take 1,000 days to hit the lunar surface and
is being tracked by the U.S. and Russia.
Moon Atlas
India launched its first rocket in 1963 and first
satellite in 1975. The country’s satellite program
is one of the largest communication systems in
the world. Japan launched its first lunar explorer,
Kaguya, in September 2007 and landed a probe on
the moon’s surface in June this year. China is
Copyright © 2009 | WWW.UPSCPORTAL.COM
scheduled to land a rover to retrieve soil and rock
samples in 2012 and, like the U.S., plans to send
astronauts there by 2020. Russia aims to follow
with a manned mission five years later.
South Korea intends to send a probe to orbit the
moon by 2020, according to the Korea Aerospace
Research Institute. The nation carried out its first
space rocket launch last week in an unsuccessful
attempt to put a satellite into orbit. The satellite
probably burned up in the atmosphere after fall-
ing back to Earth, according to the government.
Chandrayaan 2
The Indian space program got another shot in the
arm with the initial design phase of the
Chandrayaan 2 being completed. While this is just
the beginning of what is arguably India's most
ambitious space project ever, the success of the
design phase in itself is an achievement mainly
because of its inherent complexity.
The Chandrayaan 2 mission will consist of a lunar
rover that will be dropped on to the lunar surface
once the craft reaches the lunar orbit. The main
duty of the rover would be to collect and analyze
lunar soil and transmit the data back to the data
centers on earth. Pertinent to note here is the fact
that while the spacecraft would be indigenously
made, the lunar rover will be made by Russia.
The Chandrayaan 2 is expected to be operational
in the next two years. India had launched the
Chandrayaan 1 in October 2008. Already a suc-
cessful mission, it had been recently hit by a tech-
nical snag that jeopardized its operations. How-
ever, the Chandrayaan 1 has already accomplished
95 percent of the objectives assigned to it. An-
other thing to note is that the Chandrayaan 1 will
augment the Lunar landing of the rover as the
scientists are using data obtained from the
Chandrayaan 1 to decide on the perfect landing
schedule for the lunar rover.
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 Section -1 (Article : Moon Mission Chandrayaan - I)
Mission to Mars After 2015
India will embark on an unmanned mission to
Mars to explore the red planet in quest of its space
ambitions but such a mission will be feasible only
after 2015 as the space agency will be pre-occu-
pied with its second lunar mission (Chandrayaan-
2) in 2013 and a manned mission to space by 2015.
As the fourth planet from the sun in the solar sys-
tem, the distance between earth and Mars varies
from 36 million miles when nearest, to 250 mil-
lion miles when farthest in its elliptical orbit
around the sun.
Progress
Though the government Aug 13,2009 sanctioned
Rs.100 million (Rs.10 crore) as seed funding for
the Mars mission, a lot of ground work has to be
done for preparing the project report. The mis-
sion to Mars is being conceived as low-cost plan-
etary missions. For instance, Chandrayaan-1 is the
finest example of a low-cost mission, as at a cost
of $80 million (Rs.380 crore) while such missions
by other space agencies are considered low-cost
at $500 million.
To prepare a project report for government ap-
proval, the space agency will elicit the opinion of
the scientific community on the viability of such
a mission and evolve a concept paper.
The space agency plans to use the powerful geo-
synchronous satellite launch vehicle (GSLV)
Mark-III for the Mars mission, as the spacecraft
had to be first put in the earth's orbit and raised
up to Martian orbit, using ion thrusters and liquid
engines.
Though the US and Russia had launched missions
to Mars, other space-faring nations such as China
and Japan are planning to join the Martian race as
part of their planetary expeditions. Even the Eu-
ropean Space Agency (ESA) is mulling a joint mis-
sion to Mars in the coming decade. The US space
agency National Aeronautics and Space Adminis-
tration (NASA) Aug 29 proposed to Russia for a
Copyright © 2009 | WWW.UPSCPORTAL.COM
manned mission to Mars by 2030, using the In-
ternational Space Station (ISS) as a launch-pad to
the red planet.
Indian space vision 2025
» Satellite based communication and navigation
systems for rural connectivity, security needs and
mobile services
» Enhanced imaging capability for natural re-
source management, weather and climate change
studies
» Space science missions for better understanding
of solar system and universe
» Planetary exploration
» Development of Heavy lift launcher
» Reusable Launch Vehicles - Technology dem-
onstrator missions leading to Two Stage To Orbit
(TSTO)
A Brief History of Indian
Space Program
Space activities in the country started during early
1960s with the scientific investigation of upper
atmosphere and ionosphere over the magnetic
equator that passes over Thumba near
Thiruvananthapuram using small sounding rock-
ets Realising the immense potential of space tech-
nology for national development, Dr. Vikram
Sarabhai, the visionary leader envisioned that this
powerful technology could play a meaningful role
in national development and solving the problems
of common man.
Thus, Indian Space programme born in the church
beginning, space activities in the country, con-
centrated on achieving self reliance and develop-
ing capability to build and launch communication
satellites for television broadcast, telecommuni-
cations and meteorological applications; remote
sensing satellites for management of natural re-
sources.
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 Section -1 (Article : Moon Mission Chandrayaan - I)
The objective of ISRO is to develop space tech-
nology and its application to various national tasks.
ISRO has established two major space systems,
INSAT for communication, television broadcast-
ing and meteorological services, and Indian Re-
mote Sensing Satellites (IRS) system for resources
monitoring and management. ISRO has developed
two satellite launch vehicles, PSLV and GSLV, to
place INSAT and IRS satellites in the required
orbits.
Accordingly, Indian Space Research Organisation
(ISRO) has successfully operationalised two ma-
jor satellite systems namely Indian National Sat-
ellites (INSAT) for communication services and
Indian Remote Sensing (IRS) satellites for man-
agement of natural resources; also, Polar Satellite
Launch Vehicle (PSLV) for launching IRS type of
satellites and Geostationary Satellite Launch Ve-
hicle (GSLV) for launching INSAT type of satel-
lites.
The Space Commission formulates the policies and
oversees the implementation of the Indian space
programme to promote the development and ap-
plication of space science and technology for the
socio-economic benefit of the country. DOS
implements these programmes through, mainly
Indian Space Research Organisation (ISRO), Na-
tional Remote Sensing Agency (NRSA), Physical
Research Laboratory (PRL), National Atmospheric
Research Laboratory (NARL), North Eastern-
Space Applications Centre (NE-SAC) and Semi-
Conductor Laboratory (SCL). The Antrix Corpo-
ration, established in 1992 as a government owned
company, markets the space products and services
sensing satellites for management of natural re-
sources.
The Indian Space Program may be divided in two
major categories. One is the Satellite Program and
the another is the Launcher Program.
The Satellite program involves putting the satel-
lites in the space and managing the same. The sat-
ellites may be lifted by Indian made launchers or
it may involve the commercial launch vehicles.
Copyright © 2009 | WWW.UPSCPORTAL.COM
The Satellites are also of two different categories,
communication satellites and remote sensing sat-
ellites.
The launcher program involves the design, fabri-
cation and launching of launch vehicles. India has
also developed a series of launch vehicles, after a
long research and development through the
painstacking ways of successes and failures.
Satellites Program
For the past four decades, ISRO has launched more
than 50 satellites for various scientific and tech-
nological applications like mobile communica-
tions, Direct-to-Home services, meteorological ob-
servations, telemedicine, tele-education, disaster
warning, radio networking, search and rescue
operations, remote sensing and scientific studies
of the space.
ISRO has established two major space systems, the
Indian National Satellite System (INSAT) series
for communication, television broadcasting and
meteorological services which is Geo-Stationary
Satellites, and Indian Remote Sensing Satellites
(IRS) system for resources monitoring and man-
agement which is Earth Observation Satellites.
ISRO has launched many Experimental Satellites
which are generally small comparing to INSAT
or IRS and Space Missions to explore the space.
Launch Vehicles Program
Launch Vehicles are used to transport and put sat-
ellites or spacecrafts into space. In India, the
launch vehicles development programme began
in the early 1970s. The first experimental Satel-
lite Launch Vehicle (SLV-3) was developed in
1980. An Augmented version of this, ASLV, was
launched successfully in 1992. India has made tre-
mendous strides in launch vehicle technology to
achieve self-reliance in satellite launch vehicle
programme with the operationalisation of Polar
Satellite Launch Vehicle (PSLV) and Geosynchro-
nous Satellite Launch Vehicle (GSLV).
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 Section -1 (Article : Moon Mission Chandrayaan - I)

PSLV represents ISRO's first attempt to design and
develop an operational vehicle that can be used to
orbit application satellites. While SLV-3 secured
for India a place in the community of space-far-
ing nations, the ASLV provided the rites of pas-
sage into launch vehicle technology for ISRO. And
with PSLV, a new world-class vehicle has arrived.
PSLV has repeatedly proved its reliability and ver-
satility by launching 30 satellites / spacecrafts (14
Indian and 16 for international customers) into a
variety of orbits so far.
ISRO also makes the Rohini series of sounding
rockets used by the Indian and international sci-
entific community to launch payloads to various
altitudes for atmospheric research and other sci-
entific investigations. These rockets are also used
to qualify some of the critical systems used for
advanced launch vehicles.
Indian National Satellite
(INSAT) System
The INSAT series, commissioned in 1983, has to-
day become one of the largest domestic satellites
systems in the Asia, pacific region comprising
Eleven satellites in service.
Indian Remote Sensing Satellites
System (IRS)
The Indian Remote Sensing (IRS) satellite system
is one of the largest constellations of remote sens-
ing satellites in operation in the world today. The
IRS programme commissioned with launch of IRS-
1A in 1988 and presently includes Nine satellites
that continue to provide imageries in variety of
spatial resolutions from 1 metre to 180 metres.
1. RISAT-2
Launched on Apr 20, 2009 by PSLV-C12
2. CARTOSAT-2
A Launched on Apr 28, 2008 by PSLV-C9
3. IMS-1
Launched on Apr 28, 2008 by PSLV-C9
4. CARTOSAT - 2
Launched on Jan 10, 2007 by PSLV-C7
5. CARTOSAT-1
Launched on May 05, 2005 by PSLV-C6
6. RESOURCESAT-1
Launched on Oct 17, 2003 by PSLV-C5
7. TES
Launched on Oct 22, 2001 by PSLV-C3

1. INSAT-4CR Launched on Sep 02, 2007 8. OCEANSAT-1

Launched on May 26, 1999 by PSLV-C2
2. INSAT-4B Launched on Mar 12, 2007
9. IRS-1D
3. INSAT-4A Launched on Dec 22, 2005
Launched on Sep 29, 1997 by PSLV-C1
4. EDUSAT Launched on Sep 20, 2004
5. INSAT-3E Launched on Sep 28, 2003 Satellite Applications
6. GSAT-2 Launched on May 08, 2003
Space has become the mainstay of national infra-
7. INSAT-3A Launched on Apr 10, 2003 structure providing vital services. INSAT with
8. KALPANA-1 Launched on Sep 12, 2002 more than 210 transponders, is providing tele-
communications, television broadcasting, weather
9. INSAT-3C Launched on Jan 24, 2002 forecasting and societal application services such
10. INSAT-3B Launched on Mar 22, 2000 as tele-medicine and tele-education IRS System
with Nine satellites in operation is providing data
for a variety of application programmes such as
Groundwater Prospects Mapping, Crop Acreage
and Production Estimation, Potential Fishing Zone
Forecast, Biodiversity Characterisation etc., In
order to reach space-based services directly to the

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9
 Section -1 (Article : Moon Mission Chandrayaan - I)
rural population, nearly 500 Village Resource Cen-
tres (VRCs) have been set up in association with
NGOs, Institutes and Government Agencies.
INSAT Applications
The telephone circuit devices through INSAT con-
nect remote inaccessible areas to major cities in
India. The launch of INSAT-4A during Decem-
ber 2005, INSAT-4B in and INSAT- 4CR in 2007
have ushered in Direct To Home (DTH) televi-
sion services in the country. Television reaches
85 percent of India's population via INSAT. Over
200 AIR stations are linked via INSAT network.
In the recent years, Very Small Aperture Termi-
nals (VSAT) have revolutionised our telecommu-
nications sector. INSAT supports over 20,000
VSATs for e-commerce and e-governance. Na-
tional Stock Exchange and Bombay Stock Ex-
change use VSAT technology across the country
for instantaneous transactions. Today exclusive
channels are provided for interactive training and
Developmental communication including distance
learning.
India has an exclusive meteorological satellite
Kalpana - 1. The imaging instruments (VHRR) &
(CCD) collect meteorological data and provide
timely warnings on impending cyclones. The data
relay transponder in the INSAT system is used for
collect real time hydro meteorological data for
river monitoring flow forces.
The launch of EDUSAT on September 20, 2004
heralded new era in the field of distance educa-
tion and today, about 35,000 class rooms are in
the EDUSAT network providing services at pri-
mary, secondary and university levels.
The satellite based telemedicine network has ex-
panded its network connecting 375 hospitals (305
remote and rural hospitals including those in
Jammu & Kashmir, North Eastern region and
Andaman and Nicobar Islands, 13 mobile units and
57 super specialty hospitals in major cities).
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IRS Applications
Imagery taken by Indian Remote Sensing (IRS)
Satellite System has found application in diverse
fields ranging from agriculture to urban planning.
Crop health monitoring, crop yield estimation and
drought assessment are the significant areas of
application in the agriculture and the allied fields.
Soil mapping at different scales with relative ease
has become a reality.
IRS data has also been used for Ground Water
potential zone mapping and mineral targeting
tasks. The ocean applications of IRS data include
potential fishing zone identification and coastal
zone mapping.
Forest cover mapping, biodiversity
characterisation and monitoring of forest fire is
now carried out using IRS imagery. IRS spacecraft
provide timely inputs to Flood and earthquake
damage assessment thereby providing the neces-
sary supportive strength to disaster management.
Even in the field of Archaeological survey, the
utility of IRS imagery has been well established.
The judicious combination of information derived
from space based imagery with the ground based
socio economic data is leading to a holistic ap-
proach for resource monitoring and its manage-
ment.
Village Resource Centre (VRC)
Combining the services offered by INSAT and IRS
satellites, a new concept namely Village Resource
Centre (VRC) to provide information on natural
resources, land and water resources management,
tele-medicine, tele-education, adult education,
vocational training, health and family welfare
programmes has been established. Nearly 500 such
VRCs have been established in the country.
10
 Section -1 (Article : Moon Mission Chandrayaan - I)
Remote Sensing Satellites
The data from Indian Remote Sensing Satellites
are used for a variety of applications towards natu-
ral resources monitoring and management. Re-
mote sensing applications in the country have
graduated from demonstrative phase to opera-
tional phase and expanding their scope to several
new areas. Vital applications such as identifying
zones which could yield ground water, suitable
locations for recharging water, monitoring com-
mand areas, estimating crop areas and yields, as-
sessing deforestation, mapping urban areas for
planning purposes, delineating ocean areas with
higher fish catch potential and monitoring of en-
vironment etc., are being pursued actively by us-
ers using space based data.
The remote sensing application projects at na-
tional, regional and local levels are being carried
out through NRSC, Hyderabad, SAC, Ahmedabad,
five Regional Remote Sensing Service Centres
(RRSSC) located at Bangalore, Dehradun, Jodh-
pur, Kharagpur, and Nagpur as well as North-East-
ern Space Application Centre (NE-SAC), Shillong.
State and central government departments, state
remote sensing centres and others are also associ-
ating in execution of the projects.
Major application activities using satellite re-
mote sensing data in the country include:
» Natural Resources Census
» Forecasting of Agriculture outputs through Sat-
ellite, Agrometeorology and Land based observa-
tions (FASAL)
» Groundwater Prospects Mapping
National Wastelands Monitoring
» National Database for Emergency Management
(NDEM) for emergency response management in
times of natural and man-made disasters
» Watershed development for Watershed
prioritization, characterization, development plans
Copyright © 2009 | WWW.UPSCPORTAL.COM
and impact assessment
» Topographic Mapping of Indian Coast
» Web enabled land use/land cover information
system BHOOSAMPADA
» National Urban Information System (NUIS)
» Accelerated Irrigation Benefit Program (AIBP)
» Flood Management Information System
» Evaluation of Irrigation Tanks
» Natural Resources Data Base (NRDB)
» Programme on Climate change Research In Ter-
restrial environment (PRACRITI)
» Precision Farming
» Forest inventory & management
» Biodiversity characterization at landscape level
» National Agricultural Drought Assessment and
Monitoring (NADAMS): The near real time in-
formation on agricultural drought situation, from
June to November, covering national/state/district
is an input to plan for effective drought manage-
ment of the country
» Potential Fishing Zones(PFZ)
» Irrigation management and command area de-
velopment
» Snow and Glacier Inventory, Snow pack Char-
acterization and Mass balance modeling
» Desertification status mapping
Forthcoming Satellites
( RISAT - 1)
Radar Imaging Satellite (RISAT) is a microwave
remote sensing satellite carrying a Synthetic Ap-
erture Radar (SAR)
The satellite is planned to be launched on board
PSLV in 2009-10. The new technology elements
in RISAT include 160 x 4 Mbps bit rate data han-
11
 Section -1 (Article : Moon Mission Chandrayaan - I)
dling system, 0.3 Nm reaction wheels, SAR an-
tenna deployment mechanism, 70 V power bus,
thermal control of SAR antenna and phased array
antenna with dual polarization.
( RESOURCESAT-2 )
Resourcesat-2 is a follow on mission to
Resourcesat-1 to provide continuity of data. Com-
pared to Resourcesat-1, LISS-4 multi-spectral
swath has been enhanced from 23 km to 70 km
based on user needs. Suitable changes including
miniaturization in payload electronics have been
incorporated in Resourcesat-2. Resourcesat-2 is
slated for launch during 2009-10.
( Megha-Tropiques )
ISRO and French National Space Centre (CNES)
signed a Memorandum of Understanding (MOU)
in 2004-05 for the development and implementa-
tion of Megha-Tropiques (Megha meaning cloud
in Sanskrit and Tropiques meaning tropics in
French). The launch of Megha-Tropiques is
planned by 2009-2010.
Megha-Tropiques is aimed at understanding the
life cycle of convective systems and to understand
their role in the associated energy and moisture
budget of the atmosphere in the tropical regions.
The satellite will carry an Imaging Radiometer, a
six channel Humidity Sounder and GPS Radio
Occultation System.
( GSAT-4 )
GSAT-4 is envisaged as a technology demonstra-
tor. The communication payload consists of multi-
beam Ka-band bent pipe and regenerative tran-
sponder and navigation payload in C-band, L1 and
L5 bands. GSAT-4 will also carry TAUVEX-II, a
scientific payload comprising three Ultra-Violet
band telescopes developed by Tel Aviv Univer-
sity and Israel space agency, ELOP, for surveying
a large part of the sky in the 1400-3200 Å wave-
lengths.
Copyright © 2009 | WWW.UPSCPORTAL.COM
( INSAT - 3D )
INSAT-3D is a meteorological satellite planned to
be launched in the 2010. The satellite has many
new technology elements like star sensor, micro
stepping Solar Array Drive Assembly (SADA) to
reduce the spacecraft disturbances and Bus Man-
agement Unit (BMU) for control and telecomm
and/telemetry function. It also incorporates new
features of bi-annual rotation and Image and Mir-
ror motion compensations for improved perfor-
mance of the meteorological payloads.
( SARAL )
The Satellite for ARGOS and ALTIKA (SARAL)
is a joint ISRO-CNES mission, being slated for
launch on board PSLV for the third quarter of
2009. The Ka band altimeter, ALTIKA, provided
by CNES payload consists of a Ka-band radar al-
timeter, operating at 35.75 GHz. A dual frequency
total power type microwave radiometer (23.8 and
37 GHz) is embedded in the altimeter to correct
tropospheric effects on the altimeter measure-
ment. Doppler Orbitography and Radio-position-
ing Integrated by Satellite (DORIS) on board en-
ables precise determination of the orbit. A Laser
Retroreflector Array (LRA) helps to calibrate the
precise orbit determination system and the altim-
eter system several times throughout the mission.
( ASTROSAT )
ASTROSAT is a multi-wavelength space borne
astronomy satellite to be launched during 2009-
10. This will be the first dedicated Indian as-
tronomy mission. ASTROSAT has wide spectral
coverage extending over visible, UV, soft X ray
and hard X ray regions. This spacecraft would
enable observations on the celestial bodies in both
X-ray and UV spectral bands simultaneously. The
scientific payloads cover the Visible (3500-6000
Å), UV (1300-3000 Å), soft and hard X-ray re-
gimes (0.5-8 keV; 3-80 keV).
12
 Section -1 (Article : Moon Mission Chandrayaan - I)
( GSAT-5 / INSAT-4D )
It is a C-band and Extended C-band satellite, car-
rying 18 transponders. Of these, 12 transponders
will operate in the Normal C-band with wider
coverage in uplink and downlink to cover Asia,
Africa and Eastern Europe/Zonal coverage. 6 tran-
sponders will operate in Extended C-band and
have India coverage. The option of incorporating
L-band is under consideration. It will be launched
onboard GSLV during 2010 and positioned at 82
deg E longitude.
( GSAT-6 / INSAT-4E )
The primary goal of GSAT-6/INSAT-4E which is
a Multimedia mobile S-band satellite is to cater to
the consumer requirements of providing enter-
tainment and information services to vehicles
through Digital Multimedia consoles and to the
Multimedia Mobile Phones. The spacecraft will
be positioned at 83 degree East longitude with a
mission life of 12 years. The satellite is planned to
be launched during 2010 by GSLV.
( GSAT-7 / INSAT-4F )
GSAT-7/INSAT-4F is proposed as a multi-band
satellite carrying payloads in UHF, S-band, C-band
and Ku-band
( GSAT-8 / INSAT-4G )
GSAT-8/INSAT-4G is proposed as a Ku-band sat-
ellite carrying 24 transponders similar to that of
INSAT-4A and INSAT-4B. It will also carry the
second GPS Aided Geo Augmented Navigation
(GAGAN) payload. The satellite is expected to be
launched during 2010 and positioned at 55 degree
E longitude.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Top Launch
Vehicle/Forthcoming Launches
( PSLV-C14 )
Polar Satellite Launch Vehicle (PSLV-C14)
carrying Oceansat- 2 satellite (OCEANSAT-2) is
scheduled to be launched during second quarter
of 2009-10.
( GSLV-D3 )
Preparations for the next flight Geo-synchronous
Satellite Launch Vehicle (GSLV-D3) carrying
GSAT-4 is in advanced stage. The GSLV-D3 is
expected to use indigenous cryogenic engine and
will place the GSAT-4 in geosynchronous trans-
fer orbit. GSLV-D3 is scheduled for launch dur-
ing 2009.
( GSLV-F06 )
Preparations for the next flight Geo-synchronous
Satellite Launch Vehicle (GSLV-F06) carrying
INSAT-3D is in advanced stage of realisation. The
GSLV-F06 is expected be launched during 2009-
10.
( GSLV-Mk III )
GSLV-Mk III is envisaged to launch four tonne
satellite into geosynchronous transfer orbit. GSLV-
Mk III is a three-stage vehicle with a 110 tonne
core liquid propellant stage (L-110) and a strap-
on stage with two solid propellant motors, each
with 200 tonne propellant (S-200). The upper stage
will be cryogenic with a propellant loading of 25
tonne (C-25). GSLV Mk-III will have a lift-off
weight of about 629 tonne and will be 42.4 m tall.
The payload fairing will have a diameter of 5 metre
and a payload volume of 100 cubic metre.
13
 Section -1 (Article : Moon Mission Chandrayaan - I)
Top Reusable Launch Vehicle
Technology Demonstrator (RLV-TD)
As a first step towards realizing a Two Stage To
Orbit (TSTO) fully re-usable launch vehicle, a se-
ries of technology demonstration missions have
been conceived. For this purpose a Winged Reus-
able Launch Vehicle technology Demonstrator
(RLV-TD) has been configured. The RLV-TD will
act as a flying test bed to evaluate various tech-
nologies viz., hypersonic flight, autonomous land-
ing, powered cruise flight and hypersonic flight
using air breathing propulsion. First in the series
of demonstration trials is the hypersonic flight
experiment (HEX).
Human Space Flight Mission
Programme
The department has carried out a detailed study
on the feasibility of undertaking indigenous hu-
man space flight mission with an aim to build and
demonstrate the capability for carrying humans
to low earth orbit and their return to earth. The
programme envisages development of a fully au-
tonomous orbital vehicle carrying two or three
crew members to 275 km low earth orbit and their
safe return. It is planned to realise the programme
in about seven years time frame.
Top Space Science Missions
Space Capsule Recovery Experiment
(SRE-II)
The main objective of SRE II is to realize a fully
recoverable capsule and provide a platform to con-
duct microgravity experiments on Micro-biology,
Agriculture, Powder Metallurgy, etc.
( Aditya-1 )
The First Indian space based Solar Coronagraph
to study solar Corona in visible and near IR bands.
Launch of the Aditya mission is planned during
the next high solar activity period - 2012
Copyright © 2009 | WWW.UPSCPORTAL.COM
Objectives: To study the Coronal Mass Ejection
(CME) and consequently the crucial physical pa-
rameters for space weather such as the coronal
magnetic field structures, evolution of the coro-
nal magnetic field etc.
Provide completely new information on the ve-
locity fields and their variability in the inner co-
rona having an important bearing on the unsolved
problem of heating of the corona would be ob-
tained.
( YOUTHSAT )
A joint scientific mission between India and Rus-
sia with participation of youth from both the coun-
tries to celebrate the golden Jubilee of the satel-
lite era.
The second satellite in the micro satellite series
proposed is YOUTHSAT which will carry pay-
loads of scientific interest with participation of
youths from Universities at graduate, post gradu-
ate and research scholar level. Youth from uni-
versities will participate from testing of the pay-
loads in laboratory up to utilization of the data
from payloads. Participation of youth will incul-
cate interest in space related activities and pro-
vide opportunities for realization of future pay-
loads for scientific experiments. The micro satel-
lite bus is planned and designed to carry different
kinds of payloads like earth imaging, atmospheric
applications, weather monitoring, stellar observa-
tions, scientific experiments etc.
YOUTHSAT is planned to be launched as auxil-
iary satellite along with any remote sensing satel-
lite planned for launch during 2009-10 in a polar
sun-synchronous orbit of local time of around 0900
to 1030 hrs.
14
 Section -1 (Article : Moon Mission Chandrayaan - I)
Top Satellite Navigation
( GAGAN )
The Ministry of Civil Aviation has decided to
implement an indigenous Satellite-Based Regional
GPS Augmentation System also known as Space-
Based Augmentation System (SBAS) as part of the
Satellite-Based Communications, Navigation and
Surveillance (CNS)/Air Traffic Management
(ATM) plan for civil aviation. The Indian SBAS
system has been given an acronym GAGAN - GPS
Aided GEO Augmented Navigation. A national
plan for satellite navigation including implemen-
tation of Technology Demonstration System (TDS)
over the Indian air space as a proof of concept has
been prepared jointly by Airports Authority of
India (AAI) and ISRO. TDS was successfully com-
pleted during 2007 by installing eight Indian Ref-
erence Stations (INRESs) at eight Indian airports
and linked to the Master Control Center (MCC)
located near Bangalore. The first navigation pay-
load is being fabricated and it is proposed to be
flown on GSAT-4 which is expected to be
launched in 2009. Two more payloads will be sub-
sequently flown, one each on two geostationary
satellites GSAT-8 and GSAT-12.
A brief chronology of the events are presented
below:
»PSLV-C12 successfully launches RISAT-2 and
ANUSAT from Sriharikota (April 20, 2009).
» PSLV-C11 successfully launches
CHANDRAYAAN-1 from Sriharikota (October
22, 2008).
» PSLV-C9 successfully launches CARTOSAT-2A,
IMS-1 and 8 foreign nano satellites from
Sriharikota (April 28,2008).
» PSLV-C10 successfully launches TECSAR sat-
ellite under a commercial contract with Antrix
Corporation (January 21, 2008).
Copyright © 2009 | WWW.UPSCPORTAL.COM
» Successful launch of GSLV (GSLV-F04) with
INSAT-4CR on board from SDSC SHAR (Septem-
ber 2, 2007).
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C8, successfully launched Italian astronomical sat-
ellite, AGILE from Sriharikota (April 23, 2007).
» Successful launch of INSAT-4B by Ariane-5
from Kourou French Guyana, (March 12, 2007).
» Successful recovery of SRE-1 after manoeuvring
it to reenter the earth’s atmosphere and descend
over the Bay of Bengal about 140 km east of
Sriharikota (January 22, 2007).
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C7 successfully launches four satellites - India’s
CARTOSAT-2 and Space Capsule Recovery Ex-
periment (SRE-1) and Indonesia’s LAPAN-
TUBSAT and Argentina’s PEHUENSAT-1 (Janu-
ary 10, 2007).
» Second operational flight of GSLV (GSLV-F02)
from SDSC SHAR with INSAT-4C on board. (July
10, 2006). Satellite could not be placed in orbit.
» Successful launch of INSAT-4A by Ariane from
Kourou French Guyana, (December 22, 2005).
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C6, successfully launched CARTOSAT-1 and
HAMSAT satellites from Sriharikota(May 5, 2005).
» The first operational flight of GSLV (GSLV-F01)
successfully launched EDUSAT from SDSC SHAR,
Sriharikota (September 20, 2004)
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C5, successfully launched RESOURCESAT-1(IRS-
P6) satellite from Sriharikota(October 17, 2003).
» Successful launch of INSAT-3E by Ariane from
Kourou French Guyana, (September 28, 2003).
15
 Section -1 (Article : Moon Mission Chandrayaan - I)
» The Second developmental launch of GSLV-D2
with GSAT-2on board from Sriharikota (May 8,
2003).
» Successful launch of INSAT-3A by Ariane from
Kourou French Guyana, (April 10, 2003).
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C4, successfully launched KALPANA-1 satellite
from Sriharikota(September 12, 2002).
» Successful launch of INSAT-3C by Ariane from
Kourou French Guyana, (January 24, 2002).
» ISRO's Polar Satellite Launch Vehicle, PSLV-
C3,successfully launched three satellites -- Tech-
nology Experiment Satellite (TES) of ISRO, BIRD
of Germany and PROBA of Belgium - into their
intended orbits (October 22, 2001).
» The first developmental launch of GSLV-D1
with GSAT-1 on board from Sriharikota (April 18,
2001).
» INSAT-3B, the first satellite in the third gen-
eration INSAT-3 series, launched by Ariane from
Kourou French Guyana, (March 22, 2000).
» Indian Remote Sensing Satellite, IRS-P4
(OCEANSAT), launched by Polar Satellite Launch
Vehicle (PSLV-C2) along with Korean KITSAT-3
and German DLR-TUBSAT from Sriharikota (May
26, 1999).
» INSAT-2E, the last satellite in the multipur-
pose INSAT-2 series, launched by Ariane from
Kourou French Guyana, (April 3, 1999).
» INSAT system capacity augmented with the
readiness of INSAT-2DT acquired from ARABSAT
(January 1998).
» INSAT-2D, fourth satellite in the INSAT series,
launched (June 4, 1997). Becomes inoperable on
Copyright © 2009 | WWW.UPSCPORTAL.COM
October 4, 1997. (An in-orbit satellite, ARABSAT-
1C, since renamed INSAT-2DT, was acquired in
November 1997 to partly augment the INSAT sys-
tem).
» First operational launch of PSLV with IRS-1D
on board (September 29, 1997). Satellite placed in
orbit.
» Third developmental launch of PSLV with IRS-
P3, on board (March 21, 1996). Satellite placed in
polar sunsynchronous orbit.
» Launch of third operational Indian Remote Sens-
ing Satellite, IRS-1C (December 28, 1995).
» INSAT-2C, the third satellite in the INSAT-2
series, launched (December 7, 1995).
» Second developmental launch of PSLV with IRS-
P2, on board (October 15, 1994). Satellite success-
fully placed in Polar Sunsynchronous Orbit.
» Fourth developmental launch of ASLV with
SROSS-C2, on board (May 4, 1994). Satellite placed
in orbit.
» First developmental launch of PSLV with IRS-
1E on board (September 20, 1993). Satellite could
not be placed in orbit.
» INSAT-2B, the second satellite in the INSAT-2
series, launched (July 23, 1993).
» INSAT-2A, the first satellite of the indigenously-
built second-generation INSAT series, launched
(July 10, 1992).
» Third developmental launch of ASLV with
SROSS-Con board (May 20, 1992). Satellite placed
in orbit.
» Second operational Remote Sensing satellite,
IRS-1B, launched (August 29, 1991).
16
 Section -1 (Article : Moon Mission Chandrayaan - I)
» INSAT-1D launched (June 12, 1990).
» INSAT-1C launched (July 21,1988). Abandoned
in November 1989.
» Second developmental launch of ASLV with
SROSS-2 on board (July 13, 1988). Satellite could
not be placed in orbit.
» Launch of first operational Indian Remote Sens-
ing Satellite, IRS-1A (March 17, 1988).
» First developmental launch of ASLV with
SROSS-1 satellite on board (March 24, 1987). Sat-
ellite could not be placed in orbit.
» Indo-Soviet manned space mission (April 1984).
INSAT-1B, launched (August 30, 1983).
» Second developmental launch of SLV-3. RS-D2
placed in orbit (April 17, 1983).
» INSAT-1A launched (April 10, 1982).
» Deactivated on September 6, 1982.
» Bhaskara-II launched (November 20, 1981).
» APPLE, an experimental geo-stationary com-
munication satellite successfully launched (June
19, 1981).
» RS-D1 placed in orbit (May 31, 1981)
» First developmental launch of SLV-3.
» Second Experimental launch of SLV-3, Rohini
» satellite successfully placed in orbit. (July 18,
1980).
Copyright © 2009 | WWW.UPSCPORTAL.COM
» First Experimental launch of SLV-3 with Rohini
Technology Payload on board (August 10, 1979).
Satellite could not be placed in orbit.
» Bhaskara-I, an experimental satellite for earth
observations, launched (June 7, 1979).
» Satellite Telecommunication Experiments
Project (STEP) carried out.
» Satellite Instructional Television Experiment
(SITE) conducted.
» ISRO First Indian Satellite, Aryabhata, launched
(April 19, 1975).
» Becomes Government Organisation (April 1,
1975).
» Air-borne remote sensing experiments.
» Space Commission and Department of Space set
up (June 1, 1972). ISRO brought under DOS.
» Indian Space Research Organisation (ISRO)
formed under Department of Atomic Energy (Au-
gust 15, 1969).
» TERLS dedicated to the United Nations (Febru-
ary 2, 1968).
» Satellite Telecommunication Earth Station set
up at Ahmedabad.
» Space Science & Technology Centre (SSTC) es-
tablished in Thumba.
» First sounding rocket launched from TERLS (No-
vember 21, 1963).
17
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 Section -1 (Article : Doha Talks)

Doha Talks
Aiming to Unlock Global Trade Barriers
By- Avadhesh Pandey
Author is an Expert of Economic and political Issues and working as a Freelance Editor

Negotiators from key trading nations agreed on sept 15, 2009 a new work plan
aimed at concluding the long-stalled Doha Round of WTO global trade negotia-
tions in Geneva. Everybody had a calendar and now our calendar is full until the
end of the year, said Swiss WTO ambassador Luzius Wasescha, who also chairs
the negotiating group on industrial goods. Senior officials will also come to Geneva
for a week every month to advance negotiations, with the first such session to take
place around October 19, said Indian ambassador Ujal Singh Bhatia following a
meeting with his counterparts at the World Trade Organisation.

Since an aborted attempt to organise a small ministerial meeting in December last

year, the Doha Round of negotiations that began in 2001 has been restricted to low-level contacts in
Geneva. However, during a ministerial meeting in New Delhi early September, ministers pledged to re-
sume high-level talks. As a result, discussions have been scheduled at the WTO, while the European
Union also hosted a separate session with some ambassadors.

Ambassadors said however that it was still too early to tell if the latest talks will yield concrete results. The
Doha round of WTO negotiations began in 2001 with the aim of creating a new free-trade pact that would
boost global commerce to help developing countries. Deadlock between the major trading blocs has dashed
repeated attempts to forge a new pact.
The last push in July last year in Geneva ended in failure but with a new government installed in Washing-
ton since then, there is renewed hope for another drive for success sometime next year.

What is the Doha Round?

The WTO launched this round of negotiations at its November 2001 ministerial conference in Doha,
Qatar. The aim is to unlock global trade in areas where many barriers still exist, in sectors such as agricul-
ture, services and manufacturing. The Doha declaration placed particular emphasis on correcting distor-
tions that have effectively barred poor, rural nations from a share in world agricultural markets. Many
developing countries have a comparative advantage in delivering farm goods to market, and seek a sharp
reduction in rich-country trade barriers on agricultural goods, as well as textile and apparel tariffs.

As part of a grand bargain, rich countries want to increase their access to non-agricultural manufacturing
and service sectors in robust developing countries like China, India, and Brazil. They are especially eager to
capitalize on their strong financial, transportation, and telecommunications services. A much-cited world
bank study says the abolition of agricultural tariffs and subsidies would increase global exports by nearly
$300 billion per year by 2015. These kinds of targeted trade liberalizations could help lift many states out
of poverty.

Why is Doha in trouble?

Agriculture is the main stumbling block. Despite some initiatives in the past year—including a U.S. offer
to make modest cuts in farm subsidies there has been little substantive progress. The United States and a
negotiating bloc of developing states called the Group of Twenty (G-20)—including China, India and
Brazil—have criticized proposed European Union (EU) tariff cuts as insufficient; at the same time, some
countries are skeptical of the sincerity of the U.S. offer. The EU wants pledges from Brazil and India to cut
tariffs on industrial goods before it risks justifying trade concessions to the entrenched EU farm lobby.

Copyright © 2009 | WWW.UPSCPORTAL.COM

19
 Section -1 (Article : Doha Talks)
Particularly in Europe, many farmers would be
uncompetitive without high government subsi-
dies.
Leading U.S. congressional figures have said pros-
pects are slim for completing the Doha round be-
fore presidential trade-promotion authority ex-
pires in July 2007. This authority allows the presi-
dent to negotiate trade deals without the need for
congressional review. Given the rise of protection-
ist sentiment in general, and particularly since the
Democrats retook both houses of Congress in No-
vember 2006, some experts say fast track author-
ity is highly unlikely to be renewed. Without it,
controversial farm subsidy reforms would need to
be passed by both houses of Congress tall order.
What are the most divisive issues?
The dispute over agriculture hinges on the active
role the United States and the EU take to support
their agricultural sectors with subsidies and tar-
iffs. Last fall, the United States offered to cut its
agricultural subsidies by an average of more than
50 percent, but conditioned the offer on major
market-access proposals from the EU and G-20
states. The EU has offered to cut its tariffs by an
average of 40 percent, but it also wants to identify
up to 160 of its agricultural products as “sensitive”
and preserve tariff protections for them. The
Economist says 17 and 54 are the two “magic num-
bers” to meet if renewed talks this spring are to
succeed: the U.S. will need to limit its farm subsi-
dies to $17 billion (its lowest offer thus far is $22
billion), and EU countries must make cuts in their
agricultural tariffs in the vicinity of 54 percent.
The EU and United States are calling on develop-
ing nations like India and Brazil to improve their
offer to open up their markets to industrial goods.
But an open embrace from the developing world
is highly unlikely if the United States refuses to
give up its significant farm subsidies.
After decades of trade negotiations, most of the
rich countries have liberalized a great deal, with
tariffs on many goods in the single digits.
Which countries are the stumbling blocks?
Experts say blame can be widely distributed. EU
Trade Commissioner Peter Mandelson is under
Copyright © 2009 | WWW.UPSCPORTAL.COM
pressure by states such as France to stick more
closely to a mandate set by EU governments. He
says he cannot offer increased concessions unless
he sees a more attractive offer from Brazil, India
and other developing countries on non-agricul-
tural goods. But United States and Europe are fail-
ing to provide a proper example to developing
nations considering a drop in barriers. These coun-
tries are very worried about an influx of cheap
manufactured goods from China if they open up
their markets, and are watching U.S.-EU policy
toward China with interest. Both the United States
and Europe are actively considering or pursuing
trade restraints against China on one product to
the next.
This has always been an issue of U.S. and Euro-
pean leadership on lowering barriers to world
trade, and now you need some push from other
places.
G-20, now a major actor in the trade talks, needs
to provide more leadership. China should be more
engaged in the talks rather than contenting itself
to benefit from what the EU and United States
gain through negotiations. China is particularly
reluctant to open up its highly protected services
markets, such as telecoms and banking.
Which issues have been agreed on in the round?
The WTO's Hong Kong ministerial meeting in De-
cember 2005 produced an agreement by wealthy
nations to end export subsidies in agriculture by
2013. That date is conditioned on agreements be-
ing reached to avoid hidden export subsidies in
credit, food aid, and the sales of exporting state
enterprises. There are also agreements calling for
developed countries to eliminate all forms of ex-
port subsidies for cotton as early as the end of 2006.
Another important commitment made during the
round is the introduction of duty and quota-free
access for most exports from the thirty-two least-
developed countries by 2008.
What happens if Doha fails?
The Doha talks are seen as a major test for the
149-member WTO. Elliott worries countries like
the United States will turn their back on WTO
20
 Section -1 (Article : Doha Talks)
multilateral trade talks and focus instead on bilat-
eral agreements with stronger developing states.
This poses problems to businesses worried about
a “spaghetti bowl” [when multiple bilateral agree-
ments overlap, causing complex and un-integrated
regulatory requirements], but it has even more
serious implications for poor nations. The round's
failure would be a setback to global poverty-re-
duction efforts such as the UN millennium devel-
opment goals, the World Bank's move to cancel
debt for very poor countries, and increasing ef-
forts to improve foreign aid.
But trade experts often point out that previous
trade rounds in the post-World War II period have
often gone down to the wire, emerging nonethe-
less with agreements that have steadily liberal-
ized world trade.
What is the World Trade Organization?
The World Trade Organization (WTO) deals with
the rules of trade between nations at a global or
near-global level. But there is more to it than that.
There are a number of ways of looking at the
WTO. It’s an organization for liberalizing trade.
It’s a forum for governments to negotiate trade
agreements. It’s a place for them to settle trade
disputes. It operates a system of trade rules. (But
it’s not Superman, just in case anyone thought it
could solve — or cause — all the world’s prob-
lems!)
Essentially, the WTO is a place where member
governments go, to try to sort out the trade prob-
lems they face with each other. The first step is to
talk. The WTO was born out of negotiations, and
everything the WTO does is the result of nego-
tiations. The bulk of the WTO's current work
comes from the 1986-94 negotiations called the
Uruguay Round and earlier negotiations under the
General Agreement on Tariffs and Trade (GATT).
The WTO is currently the host to new negotia-
tions, under the “Doha Development Agenda”
launched in 2001.
Where countries have faced trade barriers and
wanted them lowered, the negotiations have
helped to liberalize trade. But the WTO is not just
Copyright © 2009 | WWW.UPSCPORTAL.COM
about liberalizing trade, and in some circumstances
its rules support maintaining trade barriers — for
example to protect consumers or prevent the
spread of disease.
WTO Agreements
WTO agreements negotiated and signed by the
bulk of the world’s trading nations. These docu-
ments provide the legal ground-rules for interna-
tional commerce. They are essentially contracts,
binding governments to keep their trade policies
within agreed limits. Although negotiated and
signed by governments, the goal is to help pro-
ducers of goods and services, exporters, and im-
porters conduct their business, while allowing
governments to meet social and environmental
objectives.
The system’s overriding purpose is to help trade
flow as freely as possible — so long as there are no
undesirable side-effects — because this is impor-
tant for economic development and well-being.
That partly means removing obstacles. It also
means ensuring that individuals, companies and
governments know what the trade rules are
around the world, and giving them the confidence
that there will be no sudden changes of policy. In
other words, the rules have to be “transparent”
and predictable.
Trade relations often involve conflicting interests.
Agreements, including those painstakingly nego-
tiated in the WTO system, often need interpret-
ing. The most harmonious way to settle these dif-
ferences is through some neutral procedure based
on an agreed legal foundation. That is the pur-
pose behind the dispute settlement process writ-
ten into the WTO agreements.
The WTO began life on 1 January 1995, but its
trading system is half a century older. Since 1948,
the General Agreement on Tariffs and Trade
(GATT) had provided the rules for the system.
(The second WTO ministerial meeting, held in
Geneva in May 1998, included a celebration of the
50th anniversary of the system.)
21
 Section -1 (Article : Doha Talks)
It did not take long for the General Agreement to
give birth to an unofficial, de facto international
organization, also known informally as GATT.
Over the years GATT evolved through several
rounds of negotiations.
The last and largest GATT round, was the Uru-
guay Round which lasted from 1986 to 1994 and
led to the WTO’s creation. Whereas GATT had
mainly dealt with trade in goods, the WTO and
its agreements now cover trade in services, and in
traded inventions, creations and designs (intellec-
tual property).
Trade Without Discrimination
Most-Favoured-Nation (MFN)
( Treating Other People Equally )
Under the WTO agreements, countries cannot
normally discriminate between their trading part-
ners. Grant someone a special
favour (such as a lower customs
duty rate for one of their prod-
ucts) and you have to do the same
for all other WTO members.
This principle is known as most-
favoured-nation (MFN) treatment. It is so impor-
tant that it is the first article of the General Agree-
ment on Tariffs and Trade (GATT), which gov-
erns trade in goods. MFN is also a priority in the
General Agreement on Trade in Services (GATS)
(Article 2) and the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS)
(Article 4), although in each agreement the prin-
ciple is handled slightly differently. Together,
those three agreements cover all three main areas
of trade handled by the WTO.
Some exceptions are allowed. For example, coun-
tries can set up a free trade agreement that ap-
plies only to goods traded within the group —
discriminating against goods from outside. Or they
can give developing countries special access to
their markets. Or a country can raise barriers
against products that are considered to be traded
unfairly from specific countries. And in services,
Copyright © 2009 | WWW.UPSCPORTAL.COM
countries are allowed, in limited circumstances,
to discriminate. But the agreements only permit
these exceptions under strict conditions. In gen-
eral, MFN means that every time a country low-
ers a trade barrier or opens up a market, it has to
do so for the same goods or services from all its
trading partners — whether rich or poor, weak
or strong.
National treatment
(Treating foreigners and locals Equally )
Imported and locally-produced goods should be
treated equally — at least after the foreign goods
have entered the market. The same should apply
to foreign and domestic services, and to foreign
and local trademarks, copyrights and patents. This
principle of “national treatment” (giving others the
same treatment as one’s own nationals) is also
found in all the three main WTO agreements (Ar-
ticle 3 of GATT, Article 17 of GATS and Article 3
of TRIPS), although once again the principle is
handled slightly differently in each of these.
National treatment only applies once a product,
service or item of intellectual property has entered
the market. Therefore, charging customs duty on
an import is not a violation of national treatment
even if locally-produced products are not charged
an equivalent tax.
Lowering trade barriers
Lowering trade barriers is one of the most obvi-
ous means of encouraging trade. The barriers con-
cerned include customs duties (or tariffs) and mea-
sures such as import bans or quotas that restrict
quantities selectively. From time to time other
issues such as red tape and exchange rate policies
have also been discussed.
Since GATT’s creation in 1947-48 there have been
eight rounds of trade negotiations. A ninth round,
under the Doha Development Agenda, is now un-
derway. At first these focused on lowering tariffs
(customs duties) on imported goods. As a result of
the negotiations, by the mid-1990s industrial
countries’ tariff rates on industrial goods had fallen
22
 Section -1 (Article : Doha Talks)
steadily to less than 4%.
But by the 1980s, the negotiations had expanded
to cover non-tariff barriers on goods, and to the
new areas such as services and intellectual prop-
erty.
Opening markets can be beneficial, but it also re-
quires adjustment. The WTO agreements allow
countries to introduce changes gradually, through
“progressive liberalization”. Developing countries
are usually given longer to fulfil their obligations.
Predictability
(Through Binding And Transparency)
Sometimes, promising not to raise a trade barrier
can be as important as lowering one, because the
promise gives businesses a clearer view of their
future opportunities. With stability and predict-
ability, investment is encouraged, jobs are created
and consumers can fully enjoy the benefits of com-
petition — choice and lower prices. The multilat-
eral trading system is an attempt by governments
to make the business environment stable and pre-
dictable.
In the WTO, when countries agree to open their
markets for goods or services, they “bind” their
commitments. For goods, these bindings amount
to ceilings on customs tariff rates. Sometimes coun-
tries tax imports at rates that are lower than the
bound rates. Frequently this is the case in devel-
oping countries. In developed countries the rates
actually charged and the bound rates tend to be
the same.
A country can change its bindings, but only after
negotiating with its trading partners, which could
mean compensating them for loss of trade. One of
the achievements of the Uruguay Round of mul-
tilateral trade talks was to increase the amount of
trade under binding commitments. In agriculture,
100% of products now have bound tariffs.
Copyright © 2009 | WWW.UPSCPORTAL.COM
The Result Of All This
(A Substantially Higher Degree Of Market
Security For Traders And Investors)
The system tries to improve predictability and sta-
bility in other ways as well. One way is to dis-
courage the use of quotas and other measures used
to set limits on quantities of imports — adminis-
tering quotas can lead to more red-tape and accu-
sations of unfair play. Another is to make coun-
tries’ trade rules as clear and public (“transparent”)
as possible. Many WTO agreements require gov-
ernments to disclose their policies and practices
publicly within the country or by notifying the
WTO. The regular surveillance of national trade
policies through the Trade Policy Review Mecha-
nism provides a further means of encouraging
transparency both domestically and at the multi-
lateral level.
Promoting Fair Competition
The WTO is sometimes described as a “free trade”
institution, but that is not entirely accurate. The
system does allow tariffs and, in limited circum-
stances, other forms of protection. More accu-
rately, it is a system of rules dedicated to open,
fair and undistorted competition.
The rules on non-discrimination MFN and na-
tional treatment are designed to secure fair con-
ditions of trade. So too are those on dumping (ex-
porting at below cost to gain market share) and
subsidies. The issues are complex, and the rules
try to establish what is fair or unfair, and how
governments can respond, in particular by charg-
ing additional import duties calculated to compen-
sate for damage caused by unfair trade.
Many of the other WTO agreements aim to sup-
port fair competition: in agriculture, intellectual
property, services, for example. The agreement on
government procurement (a “plurilateral” agree-
ment because it is signed by only a few WTO
members) extends competition rules to purchases
by thousands of government entities in many
countries. And so on.
23
 Section -1 (Article : Doha Talks)

Encouraging development and economic reform

The WTO system contributes to development. On
the other hand, developing countries need flex-
ibility in the time they take to implement the
system’s agreements. And the agreements them-
selves inherit the earlier provisions of GATT that
allow for special assistance and trade concessions
for developing countries.

Over three quarters of WTO members are devel-

oping countries and countries in transition to
market economies. During the seven and a half
years of the Uruguay Round, over 60 of these
countries implemented trade liberalization
programmes autonomously. At the same time,
developing countries and transition economies
were much more active and influential in the Uru-
guay Round negotiations than in any previous
round, and they are even more so in the current
Doha Development Agenda.
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At the end of the Uruguay Round, developing

countries were prepared to take on most of the
obligations that are required of developed coun-
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for the poorest, “least-developed” countries.

A ministerial decision adopted at the end of the

round says better-off countries should accelerate
implementing market access commitments on
goods exported by the least-developed countries,
and it seeks increased technical assistance for
them. More recently, developed countries have
started to allow duty-free and quota-free imports
for almost all products from least-developed coun-
tries. On all of this, the WTO and its members are
still going through a learning process. The cur-
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25
 Section -1 (Article : Child Labour)
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26
 Section -1 (Article : Child Labour)
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29
 Section -1 (Article : Child Labour)

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 Section -2 (Hot Topics)
PSLV-C14 Successfully Launched Oceansat-2
Steps Towards World Space Market
Three days after its 16th birthday, the Polar Sat-
ellite Launch Vehicle on Sep 23, 2009 roared its
way to success from the Sriharikota spaceport and
put in orbit India’s Oceansat-2 and six foreign nano
satellites. This was the 15th successful flight of
the launch vehicle in a row. The first PSLV flight
took place on September 20, 1993.
It was a spectacular mission.
Everything went all right for the
Indian Space Research
Organisation (ISRO) as the
countdown was smooth and the
lift-off perfect at the appointed
time of 11.51 a.m. Then the first
stage of the PSLV-C14 came
alive and the vehicle galvanised
itself as it climbed into the sky.
The three other stages too ig-
nited and separated on time and
the satellites were precisely in-
jected into orbit.
At the end of 18 minutes of
flight, the PSLV’s fourth stage
injected Oceansat-2 into orbit at
a velocity of 25,000 km an hour
at an altitude of about 728 km. Thereafter, spring-
loaded action mechanisms catapulted four nano
satellites called Cubesat 1, 2, 3 and 4 into orbit
one after the other. The other two nano satellites,
Rubinsat 9.1 and 9.2, remained attached to the
fourth stage. It implies that the fourth stage went
into orbit.
The satellite’s solar panels had been deployed. A
ground station at Antarctica had tracked it. The
spacecraft, which was built at the centre, was
pointing towards the earth in the right direction.
While two of Oceansat-2’s three payloads were
designed and developed by the Space Applications
Centre (SAC), Ahmedabad, the third one came
from Italy. The satellite would provide data about
plant life in the oceans. It would help in locating
schools of fish and monitoring algal blooms that
were harmful to fish life.
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ISRO Has Challenges Ahead
Although the PSLV-C14 mission was a success,
there are challenges ahead for the Indian Space
Research Organisation (ISRO). These include
launching a Geosynchronous Satellite Launch Ve-
hicle (GSLV-D3) with an indig-
enous cryogenic stage from
Sriharikota in December 2009
and the PSLV-C15 ahead of De-
cember.
The GSLV-D3 launch would be
a landmark in indigenous tech-
nology. It would put a commu-
nication satellite called GSAT-4
in orbit. The first stage had
moved to Sriharikota. Its indig-
enous cryogenic stage would un-
dergo tests at the Liquid Propul-
sion Systems Centre at
Mahendragiri in Tamil Nadu.
Then it would be moved to
Sriharikota and integrated with
the other stages. In the case of
the PSLV-C15, it would put Cartosat-2B in orbit.
ISRO had completed the preliminary design of
Chandrayaan-2, which would boast of a lander-
cum-rover. The rover would go about on the moon
and pick up samples, which would be analysed in
situ. Its launch would take place in 2012-13.
Oceansat-2
Oceansat-2 satellite mainframe systems derive
their heritage from previous IRS missions and
launched by PSLV-C14. It carries three pay-
loads:
» Ocean Colour Monitor (OCM)
32
 Section -2 (Hot Topics)
» Ku-band Pencil Beam scatterometer (SCAT) de-
veloped by ISRO
» Radio Occultation Sounder for Atmosphere
(ROSA) developed by the Italian Space Agency.
Oceansat-2 is envisaged to provide continuity of
operational services of Oceansat-1(IRS-P4) with
enhanced application potential.
» Launch Date: Sept 23, 2009
» Launch Site: SHAR, Sriharikota
» Launch Vehicle: PSLV - C14
» Orbit: Polar Sun Synchronous
» Altitude: 720 km
» Inclination: 98.28°
» Period: 99.31 minutes
» Repetitivity Cycle: 2 days
» Playloads: OCM, SCAT and ROSA
» Mass At Lift Off: 960 kg
» Power: 15 Sq.m Solar panels generating
1360W, Two 24 Ah Ni-Cd Batteries
» Mission Life: 5 years
For the PSLV-C14 flight, George Koshi was the
Mission Director and P. Kunhikrishnan the Ve-
hicle Director. M. Venkata Rao was the Project
Director of Oceansat-2 and Mr. Prasad the Range
Operation Director. While the rocket costs Rs. 75
crore, the Oceansat-2 costs Rs. 160 crore.
The 960-kg Oceansat-2 had three important pay-
loads. They were the ocean colour monitor, a
scatterometer (both designed by the SAC) and Ra-
dio Occultation Sounder for Atmospheric Studies
(ROSA) built by the Italian Space Agency.
The ocean colour monitor would gather data about
plant life in the oceans and the scatterometer
would measure the sea surface winds.
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Winds are important for weather forecasting and
how the cyclones are generated. Data from both
these sensors would be available to the national
and international community. The ROSA would
study the temperature and humidity in the atmo-
sphere.
These three payloads will help in monitoring many
of the phenomena [related to the oceans and the
atmosphere] and help in predicting the weather.
The six nano satellites put in orbit were educa-
tional satellites from abroad, meant to test new
spacecraft technologies.
Of the six, four were Cubesats weighing one kg
each. They were from Ecole Polytechnique
federale de Lausanne in Switzerland, Technical
University of Berlin and University of Wurzburg,
both in Germany, and Istanbul Technical Univer-
sity. The Rubinsats, weighing eight kg each, were
from Luxembourg and Germany.
CUBESATs & RUBIN
Four CUBESATs and Two RUBIN are the foreign
satellites launched by PSLV-C14 along with the
main satellite - Oceansat-2.
CUBESATs
The four CUBESATs are educational satellites from
European universities, each weighing around one
kg. and developed to perform technology demon-
stration in space. The satellites are launched in-
side a Single Picosatellite Launcher (SPL) also
weighing one kg., which is a dedicated European
launch adaptor to deploy a CubeSat.
CUBESAT-1: UWE-2, from the Universität
Würzburg, Germany
UWE-2 is a pico satellite, with the mission objec-
tive of demonstration of a newly developed Atti-
tude Determination and Control system (ADCS)
and the technology demonstration of a GPS on a
Cubesat.
33
 Section -2 (Hot Topics)
CUBESAT-2: BeeSat, from the Technische
Universität Berlin, Germany
BeeSat is a pico satellite project of the Technical
University of Berlin with the main objective of
on-orbit verification of newly developed micro
reaction wheels for pico satellite applications and
will demonstrate the use of coin sized micro reac-
tion wheels for attitude control of pico satellites
in orbit as one of the key elements.
CUBESAT-3: ITU-pSAT1, from Istanbul
Technical University, Turkey
The primary mission of the satellite is to examine
the performance of an on-board passive stability
system consisting of a magnet which will align
the satellite to the magnetic field of the Earth with
an error of about 15 degrees according to simula-
tions, and to verify this figure. A secondary ob-
jective is to download photographs taken using a
camera with a resolution of 640 x 480 pixels.
CUBESAT-4: SwissCube, from Ecole
Polytechnique Fédéral de Lausanne, Switzer-
land
The SwissCube mission objective is to house a sci-
ence payload and take optical measurements and
characterize the airglow intensity over selected
latitudes and longitudes thereby demonstrating
that the airglow emissions are strong enough to
be measured by an off-the-shelf detector and vali-
dating the concept for the development of a low-
cost Earth sensor.
RUBIN-9
RUBIN-9 consists of two Spacecrafts Rubin-9.1
and Rubin-9.2 weighing 8kg each and will prima-
rily be used for the Automatic Identification Sys-
tem (AIS) for Maritime applications. These are
non-separable payloads that will be mounted at
an angle of 45deg to the PSLV EB deck.
Rubin-9.1 is developed by Luxspace and has a
mission objective of providing an insight into the
issue of message collisions that limit detection in
areas of dense shipping.
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The main purpose of the Rubin-9.2 spacecraft is
to test and qualify nano technologies from Ang-
strom company Sweden and to continue space
based maritime Automatic Identification System
(AIS) receiver experiments (started with Rubin-7
and Rubin-8 missions). Rubin-9.2 is similar to the
Rubin-8 launched on PSLV-C9 in April 2008
PSLV-C14
PSLV is a four-stage launch vehicle employing
both solid and liquid propulsion stages. PSLV is
the trusted workhorse launch Vehicle of ISRO.
During Sep. 1993 - Apr. 2009 period, PSLV had
fifteen launches of which fourteen were consecu-
tively successful. PSLV has repeatedly proved its
reliability and versatility by launching 39 space-
crafts (17 Indian and 22 for international custom-
ers) into a variety of orbits so far. It may be re-
called that during its previous mission, PSLV had
successfully launched RISAT-2 and ANUSAT
spacecrafts on April 20, 2009.
In its standard configuration, the 44 m tall PSLV
has a lift-off mass of 295 tonne. It is a four-stage
launch vehicle with the first and the third stages
as well as the six strap-ons surrounding the first
stage using HTPB based solid propellant. PSLV's
first stage is one of the largest solid propellant
boosters in the world. Its second and fourth stages
use liquid propellants.
This mission is unique for PSLV as this is the first
time that new AMC/ATS based avionics is being
used for a typical SSPO mission. A Core Alone
configuration of the vehicle with PS4 L2.5 stage
is being employed to put the satellites in orbit.
This is the fifth mission of PSLV in Core alone
configuration.
Major changes
» PS4 to use L2.5 stage
» First time use of ECI frame and Quaternion based
computation for SSPO mission
34
» Introduction of a 45° inclined deck to mount
Rubin spacecrafts on EB
» CUBESATs are separated using a separation sys-
tem SPL supplied along with S/C by the user.

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35
 Section -3 (Current Affairs)
Current Affairs
Current Relevant Facts
» United States continued to lead the global IT
industry competitiveness ranking in an annual sur-
vey by the Economist Intelligence Unit, followed
by Finland, Sweden and
Canada.
The prominence of Fin-
land, Sweden, Canada and
the Netherlands in the
index's top tier was helped
most by their robust IT in-
frastructure and strong
support for technology re-
search and development,
the survey said. An im-
proving R&D environment and also human capi-
tal helped lift China's ranking to 39th and Russia's
to 38th.
The IT Industry Competitiveness Index of 66
countries assesses and compares the quality of the
local technology infrastructure, the availability
and quality of IT talent, the innovation environ-
ment, the legal regime, the business environment,
and government technology policies, the EIU said.
India stands at 44th rank among global IT com-
petitiveness index.
» The Union Cabinet on Sep 17, 2009 approved
amendments to the Transplantation of Human Or-
gans Act, 1994, to prevent illegal organ trade and
provide for stringent punishment to those indulg-
ing in such practices. The amendments will allow
transplantation of tissues that include bones, skin,
and tendons.
Organ swapping
The definition of the word ‘relative’ has been re-
vised to incorporate grandparents and grandchil-
dren as donors. Further, organ swapping will now
be allowed.
Copyright © 2009 | WWW.UPSCPORTAL.COM
While organ transplanting in India will be made
stringent for foreign nationals, the penalty provi-
sions have been strengthened, with erring doc-
tors liable to 10-year imprison-
ment and touts or middlemen
up to seven years.
The amendments were ap-
proved in view of illegal trade,
particularly in kidneys, which
often involves the exploitation
of economically weaker sec-
tions by some clinicians, man-
agers of clinical centres and
middlemen.
Patient-friendly
The objective was to prevent commercial dealings
and make the system transparent and patient-
friendly. There was an increasing perception in
civil society that while the Act had not been ef-
fective in curbing commercial transactions in
transplantation, it thwarted genuine cases what
with the complicated and long-drawn process in-
volving organ donation.
The Act came into force on February 4, 1995 in
Goa, Himachal Pradesh and Maharashtra. It was
subsequently adopted by all States except Jammu
and Kashmir, where Central legislation have to
be endorsed by the Assembly. The purpose of the
Act is to regulate the removal, storage and trans-
plantation of organs for therapeutic use and to
prevent commercial dealings. Organ transplanta-
tion has been under a cloud for long, with even
the National Human Rights Commission voicing
concern over it. Subsequently, a committee was
set up on the directions of the Delhi High Court
to review the Act, and it submitted its report four
years ago.
36
 Section -3 (Current Affairs)
The Union Cabinet on Sep 17, 2009 approved the
setting up of nine new National Institutes of Tech-
nology (NITs), taking their number to 29 across
the country. While the process of establishing the
new NITs will get under way immediately, the
first round of admissions will begin in the next
academic year and classes will be held in mentor
NITs or campuses taken on lease.
The new NITs will be set up in Manipur,
Meghalaya, Mizoram, Nagaland, Goa, Puducherry,
Sikkim, Delhi, and Uttarakhand. The Goa NIT will
cater to the Union Territories of Daman & Diu,
Dadra & Nagar Haveli, and Lakshadweep, while
the Puducherry NIT will cover the Andaman &
Nicobar Islands. Chandigarh will come under the
Delhi NIT.
Barring the Delhi and Uttarakhand NITs, all other
new NITs will be established at a cost of Rs.250
crore each. In the case of the Delhi and
Uttarakhand NITs, the cost estimate is higher at
Rs.300 crore. Work for the construction of the
new campuses will begin as soon as the State gov-
ernments provide land free-of-cost.
By setting up these new NITs, the Union Human
Resource Development (HRD) Ministry hopes to
cover all the States and Union Territories which
till date have remained uncovered by the NIT
network. This will locally address some of the
demand for engineering education in these States,
as 50 per cent of the seats have to be filled from
within, while the remaining seats are to be filled
on an all-India merit basis.
Of the 20 existing NITs, 17 used to be Regional
Engineering Colleges. They were taken over as
fully funded institutes of the Central government,
granted deemed university status, and rechristened
NITs in 2003 by the Murli Manohar Joshi regime
in the HRD Ministry.
» The HRD Ministry has issued a fresh notifica-
tion on the revision of pay for teaching and other
staff in the Centrally Funded Technical Institu-
tions, following protests by some faculty mem-
bers. As per the new notification, the post of lec-
turer-cum-post doctoral fellows will be re-desig-
Copyright © 2009 | WWW.UPSCPORTAL.COM
nated as assistant professors, to be recruited on
contractual basis.
Also, assistant professors in Indian Institutes of
Technology, the Indian Institute of Science, Ban-
galore, and in Indian Institutes of Management
on completion of three years of service will move
to pay band-4, with an academic grade pay of
Rs.9,000. Their designation will remain the same.
» An additional weightage of 10 per cent for each
year of rural service will be given to doctors ap-
plying for postgraduate entrance examinations
from the next academic year.
Announcing this on Sep 17, 2009 at a press con-
ference, Union Health and Family Welfare Min-
ister Ghulam Nabi Azad said this weightage will
be subject to a maximum of 30 per cent for three
years, though a doctor could serve in rural areas
for as many years as he chose to after completing
the internship . Similarly, 50 per cent of seats in
postgraduate diploma courses have also been re-
served for medical officers in government service
who have served for at least three years in remote
and inaccessible areas.
In order to facilitate the increase in the number
of medical specialists, the government has also
decided to increase the enrolment of postgradu-
ate students. The existing 1:1 ratio will be en-
hanced in broad specialities for professor and in
super specialities to 1:2. The rise in the number of
postgraduate doctors will automatically increase
the number of teachers due to the multiplier ef-
fect. Thus, without substantive additional resource
and infrastructure requirement, the number of
postgraduate specialists would dramatically in-
crease annually by almost 5,000 from the existing
13,000 .
Further, Mr. Azad said land requirement for set-
ting up medical colleges was also being relaxed
from the current 25 acres to 20 acres throughout
the country. However, with respect to hill States,
northeastern States, Empowered Action Group
(EAG) States under the National Rural Health
Mission and Union Territories of Andaman and
37
 Section -3 (Current Affairs)
Nicobar Islands, Lakshdweep, Dadra and Nagar
Haveli and Daman and Diu, two parcels of land
separated by a distance of not more than 10 km
will be allowed.
Due to non-availability of land in the metropoli-
tan and A grade cities, medical colleges could have
multi-storied buildings with the required floor
area. In such cases the land requirement would
be 10 acres instead of 20 acres.
State governments will also be allowed to enter
into private partnerships to set up medical col-
leges where district hospitals can be used as pub-
lic components. Now, companies registered un-
der the Companies Act will also be allowed to es-
tablish medical colleges as against the existing rules
that allowed only universities, autonomous bod-
ies, registered societies and religious and chari-
table trusts to establish medical institutions.
» Renewable energy, health care, drug discovery
and nanotechnologies will be among thrust areas
of cooperation in science and technology between
India and Russia under a new bilateral programme
for 2010-2020. The new programme to be signed
next year will be a renewal of the Integrated Long-
Term Programme (ILTP) of Cooperation in Sci-
ence & Technology that the two countries first
signed in 1987. Over the past 20 years more than
500 projects have been successfully accomplished
under the ILTP title and another 80 projects are
in the pipeline.
As a first step, India and Russia plan to set up a
joint venture for large-scale production of silicon
wafers in Russia using abundant hydropower in
Siberia, which is substantially cheaper than elec-
tricity generated in India. This is a third time in a
decade that India plans to tie up with Russia for
silicon production.
Earlier India could not spare at least $200 million
to invest in the project and did not feel such ur-
gency for alternative energy. India also hopes to
source from Russia new non-silicon technologies
for utilising solar energy. Under an MoU with
Copyright © 2009 | WWW.UPSCPORTAL.COM
Russia’s Ioffe Physics Institute, the CSIR will test
in its laboratories prototype photo-material de-
veloped by Russian scientists, Prof. Brahmachari
said.
In another major development, the Department
of Atomic Energy is negotiating for India to be-
come a member of the international Dubna Joint
Institute for Nuclear Research, a top-notch Rus-
sian nuclear centre. India already has a coopera-
tion agreement with the Kurchatov Institute, an-
other Russian nodal centre for nuclear research.
»U.S. President Barack Obama
shelved a Bush-era plan for an Eastern
European missile defence plan that has
been a major irritant in U.S. relations
with Russia. He said a redesigned de-
fensive system would be cheaper, quicker and
more effective against the threat from Iranian
missiles. New missile defence architecture in Eu-
rope will provide stronger, smarter and swifter
defences of American forces and America’s allies.
It is more comprehensive than the previous
programme; it deploys capabilities that are proven
and cost effective, and it sustains and builds upon
our commitment to protect the U.S. homeland.
The missile defence system, planned under the
Bush administration, was to have been built in
the Czech Republic and Poland. Mr. Obama
phoned Czech Prime Minister Jan Fischer on
Wednesday night and Polish Prime Minister
Donald Tusk on Thursday to alert them of his de-
cision.
Mr. Obama said the plan was scrapped in part
because, after a review, the U.S. has concluded
that Iran was less focused on developing the kind
of long-range missiles for which the system was
originally developed, making the building of an
expensive new shield unnecessary. New technol-
ogy also had arisen that military advisers decided
could be deployed sooner and more effectively.
But later Defence Secretary Robert Gates said the
U.S. still aimed to deploy missiles in Poland and
the Czech Republic in 2015, even though Iran’s
38
 Section -3 (Current Affairs)
long-range missile programme was further off than
thought. The second phase about 2015 will in-
volve fielding upgraded land based SM-3s about
hosting a land based version and other compo-
nents of the system
» Former president of the Indian
cricket board Raj Singh Dungarpur
died in Mumbai on Sep 12,2009 af-
ter a protracted illness, leaving the
entire cricket world in mourning. He was 73.
Raj Bhai, as he was fondly known, was the man
who never hesitated to take bold decisions. As
chief selector he picked Sachin Tendulkar after
first watching him play for Cricket Club of India
(CCI). Hailing from the erstwhile royal family of
Dungarpur in Rajasthan, he was the youngest son
of Lakshman Singhji, the ex-ruler.
A right-arm medium-fast bowler who represented
and led Rajasthan successfully in the Ranji Tro-
phy in the 1960s, Dungarpur took 206 wickets in
86 first-class matches. He dedicated his post-re-
tirement life to cricket administration and rose to
become the board president 1996-99. Dungarpur’s
capabilities as a visionary were also evident in the
form of the critical role that he essayed in the in-
stitution of the National Cricket Academy at Ban-
galore in 2000.
»Norman Borlaug, a Nobel Prize
winning scientist whose work on
disease-resistant wheat is credited
with saving hundreds of millions of
lives, has died at the age of 95 on 13 sept,2009.
The acclaimed agriculturalist, often credited with
sparking the Green Revolution, died late on Sat-
urday in Dallas, Texas, due to complications from
cancer, according to Texas A&M University,
where Borlaug served since 1984.
Borlaug was best known for his work developing
high-yield disease-resistant "dwarf" wheat, which
dramatically increased food production in Asia and
Latin America.
Norman E. Borlaug saved more lives than any man
Copyright © 2009 | WWW.UPSCPORTAL.COM
in human history. His total devotion to ending
famine and hunger revolutionized food security
for millions of people and for many nations.
Borlaug began his career in the pre-war years at
the US forestry service, after earning an under-
graduate degree at the University in Minnesota.
Like many in America's midwest, Borlaug traced
his roots back to Europe's Nordic region, which
he referred to as "the land of my fathers."
Born in Iowa in March 1914, "his childhood days
were spent on an Iowa farm, influenced by his
Norwegian grandfather's lessons on common
sense. That common sense led him to focus on
one of the fundamentals of human existence, food.
Beginning in 1944 he worked for two decades with
Mexican scientists to develop new wheat variet-
ies, which was were later introduced to India and
Pakistan, helping to feed what he described as the
"population monster."
The dwarf wheat yielded two to three times as
much as the normal crop. According to his own
figures, the new strain nearly doubled Indian and
Pakistani wheat production between 1965 and
1970, a leap of over 11 million tons. The success,
at a time when mass famines were widely pre-
dicted, spread his fame across the globe and his
dwarf wheat throughout Latin America, the
Middle East and Africa.
He was awarded the Nobel Peace Prize for his
work in 1970, when he pledged to serve with "an
army of hunger fighters... for a lifetime term." In
the United States he was awarded the Presiden-
tial Medal of Freedom and the US Congressional
Gold Medal, the country's two top civilian hon-
ors. He has also earned a slew of honorary univer-
sities degrees from around the world, from India's
Punjab to Bolivia. As biotechnology developed
apace with the advent of genetic modification,
Borlaug was an avid supporter.
» The U.S. Food and Drug Admin-
istration (FDA) has approved a
swine flu vaccine, keeping officials
on track to begin a mass vaccination campaign by
next month. It has approved applications for vac-
39
 Section -3 (Current Affairs)
cine for the 2009 H1N1 virus for four of the (five)
manufacturers of the U.S. licensed seasonal influ-
enza vaccine.
The U.S. government purchased 195 million doses
of the vaccine and would make shots available free
of charge “for the American people” starting next
month. Providers might charge a fee to adminis-
ter them, she said. Vaccination would be volun-
tary, with priority given to five groups deemed at
particular risk from the novel swine flu virus.
Clinical trials were under way to determine if
there was “any harm” in having a seasonal flu vac-
cine, already available, at the same time as this
one.
» Central Electricity Regulatory
Commission (CERC) on Sep 17,
2009 notified tariff regulations for
green power generated from re-
newable energy sources in an ef-
fort to attract new investments in
this sector. The regulations have been finalised
keeping in view the statutory mandate to Elec-
tricity Regulatory Commission for promoting co-
generation and generation of electricity from re-
newable sources of energy.
These regulations assumed special importance in
view of the National Action Plan on Climate
Change which stipulated that minimum renew-
able purchase standards might be set at 5 per cent
of the total power purchases in the year 2010 and
thereafter should increase by one percentage point
each year for ten years.
Specifying capital cost norms and fixing tariff
upfront for the whole tariff period are the two
main features of the new regulations. The regula-
tions provide normative capital costs for projects
based on different renewable technologies. These
capital costs are to be revised every year for in-
corporating the relevant escalations. The tariff
permitted to a project under these regulations
would apply for the whole tariff period which is
13 years. The tariff period for solar power has been
kept as 25 years and for small hydro below 5 MW,
Copyright © 2009 | WWW.UPSCPORTAL.COM
it has been kept as 35 years. The Forum of Regu-
lators has also agreed to implement Renewable
Energy Certificate (REC) mechanism which will
be an alternative route for fulfilling renewable
purchase obligations.
» From August 7 to 8, the 13th Meeting between
the Chinese and Indian Special Representative on
Boundary Question was held in New Delhi, In-
dia. Chinese Special Representative, State Coun-
cilor Dai Bingguo met with his counterpart, Mr.
Narayanan, India’s National Security Advisor.
During his stay in India, State Councilor Dai also
met with Mrs. Sonia Gandhi, Chairperson of the
Indian Congress Party and Prime Minister Singh.
In a friendly and candid atmosphere, the two Spe-
cial Representatives had an in-depth exchange of
views on resolving the boundary question. Both
agreed to press ahead with the framework nego-
tiations in accordance with the agreed political
parameters and guiding principle so as to seek for
a fair and reasonable solution acceptable to both.
Prior to that, both should work together to main-
tain peace and tranquility in the border areas.
During the talks, the two sides exchanged in-depth
views on the further development of China-India
Strategic and Cooperative Partnership, as well as
regional, international and global issues of mutual
interest.
The Chinese side pointed out that the Chinese
Government and people value the strategic and
cooperative partnership between China and In-
dia, the largest two developing nations with a com-
bined population accounting for 40 percent of the
world’s total. Friendly coexistence, mutual ben-
eficial cooperation and shared progress between
the two neighbours will contribute not only to
the people of the two countries but also Asia and
the whole world. China and India have no other
option than living in peace and developing side
by side. China stands firmly committed to work-
ing with India to press ahead with the bilateral
ties.
The Chinese side believes that both countries need
40
 Section -3 (Current Affairs)
to promote the relationship with a higher and stra-
tegic perspective and continue to uphold the Five
Principles of Peaceful Coexistence. China and In-
dia should endeavor to build the strategic mutual
trust. Both need to expand the common interests
and cooperation bilaterally and on regional and
global affairs. Both should take concrete steps to
enhance people-to-people and cultural interac-
tions so as to nurture the mutual understanding
and friendship between the two peoples. For the
questions left over from history,the two countries
should work to seek for a fair and reasonable mu-
tually acceptable solution through peaceful and
friendly negotiations.
For the future development of the bilateral ties,
the Chinese side made the following suggestions.
The two countries need to maintain the momen-
tum of high-level exchanges, well celebrate the
60th anniversary marking the establishment of the
diplomatic relations between the two countries,
especially the China Festival and India Festival in
each other’s country in 2010. Both countries
should strengthen mutually beneficial cooperation
in the economic field and trade, fully tap the po-
tential for cooperation and properly handle fric-
tions and questions thereof and stand side by side
against trade protectionism so as to ensure the
sustained and healthy development of bilateral
economic ties. The two neighbours should en-
hance people-to-people and cultural exchanges,
those between the youth, academic institutions,
media and localities in particular, and deepen de-
fence cooperation and continue the defence and
security talks. China and India should also inten-
sify the coordination and cooperation on major
international issues, especially the global efforts
in response to world financial crisis, climate
change, energy and food security so as to promote
evolution of international system that is in favor
of developing nations. The two sides also exchange
views on the situation in South and Northeast Asia.
» The first batch of India’s indigenously built state-
of-the-art T-90 main battle tanks, named Bhishma,
with features like protection from nuclear attack,
were handed over to the army on August 24, 2009
at a function in Avadi, Tamil Nadu. The tanks are
Copyright © 2009 | WWW.UPSCPORTAL.COM
being manufactured at the Heavy Vehicles Fac-
tory (HVF).
HVF plans to produce 100 tanks per year. Indian
army has already around 700 of these frontline
tanks in service and contract has been signed for
purchase of another 400 off the shelf.
The tanks have features like capability to fire
guided missile, in addition to the conventional
ammunition, using the same main gun barrel and
guided weapon system and ballistic computer fa-
cilities to ensure accurate firing of both conven-
tional ammunition and guided missiles.
It is equipped with 125 mm smooth bore gun, 12.7
mm anti-aircraft machine gun and 7.62 mm co-
axial Machine gun supported with high accuracy
sighting systems, and automatic loader for higher
firing rate. The induction of the tanks is an im-
portant milestone for the Indian army and a step
towards attaining self-sufficiency in its prepared-
ness.
» A team comprising only lady officers of the In-
dian Army scaled the Siachen glacier on August
15, 2009, making it the first ladies team to have
reached the highest battlefield in the world. Lo-
cated in north-eastern J&K, Saichen glacier is to-
tally snow- bound throughout the year and is one
of the treacherous stretches of land with deep
crevices and steep walls of ice.
The lady officers, led by Major Meghna Aktadikar,
are from the corps of engineers. The expedition
comprised the following officers: Major Neha
Bhatnagar, Major Pradiya Kulkarni, Major
Meghna R, Capt Shalini Datta, Capt Pushpa
Kumari, Capt RP Parashar, Lt Namrata Rathore,
Lt Girija Mohalkar, Lt Vijay Laxmi Thakur, Lt
Garima Pal and Lt Neelam Rathore.
» Sixty- three-year-old social activist Deep Joshi
has been decorated with the 2009 Ramon
Magsaysay Award, known as Asia’s Nobel Prize.
He has been recognised for “his vision and leader-
ship in bringing professionalism in the NGO move-
41
 Section -3 (Current Affairs)
ment in India”.
He has been working to transform the lives of over
a lakh families covering as many as 3,000 villages,
many of them in Naxalite-affected areas. His ac-
tivities are spread over the Naxalite-affected belt
of Jharkhand, Bankura and Purulia regions of West
Bengal and the Maoist-dominated Chhattisgarh
and Orissa.
Joshi founded in 1983 the Professional Assistance
for Development Action (PRADAN), an NGO,
along with one Vijay Mahajan. The NGO recruited
university-educated youth from campuses across
the country and groomed them for grass-root work
through a rigorous year-long apprenticeship
which combined formal training and guided prac-
tice in the field.
Living and working directly with India’s poorest
communities, PRADAN staff empowered village
groups with technical, project implementation,
and networking skills that increased both their
income-generating capabilities and their actual
family earnings.
A Masters in engineering from the Massachusetts
Institute of Technology (MIT) and a Masters in
Management from the Sloan School, MIT, Joshi
worked with the Systems Research Institute, the
Ford Foundation and has nearly 30 years of expe-
rience in the field of rural development and live-
lihood promotion. He also advises the government
on poverty alleviation strategies.
» Yukio Hatoyama has been elected
as the Prime Minister of Japan. He is a
fourth-generation politician and
grandson of a former Prime Minister
and belongs to a rich family that
founded tyre giant Bridgestone.
He has a doctorate in engineering from Stanford
University in the US and is married to a former
musical actress who has also published several cook
books.
He was elected to the lower house for the first
Copyright © 2009 | WWW.UPSCPORTAL.COM
time in 1986 on a LDP ticket. In 1993 he walked
away from LDP and floated New Party Sakigake,
which ousted LDP in elections later that year. The
pro-reform coalition, however, fell after eight
months over a funding scandal. In 1996-99, he
helped found the Democratic Party of Japan and
became its leader. In 200 he stepped down as DPJ
leader over criticism of his plan for a merger with
some opposition groups. In 2009 he again tookover
the helm of DPJ and led it to victory.
Mr Hatoyama wants to improve people’s lives
through increased welfare spending. He is known
less for economic policies than for his stance on
security and diplomacy. He has advocated revis-
ing the pacifist constitution to acknowledge
Japan’s right to defend itself and maintain a mili-
tary for that purpose.
» The Mangala oil fields of Cairn India in Barmer,
Rajasthan were inaugurated by Prime minister
Manmohan Singh on August 29, 2009. The fields
will help India curtail its oil import bill, which is
to the tune of $20 billion, to a large extent.
Mangala’s peak production of 1.25 lakh barrels per
day (bpd) will be reached in the first half of 2010.
Along with two other fields—Bhagyam and
Aishwarya—the aggregate peak production of
Cairn India will be 1.75 lakh bpd, which is 20 per
cent of India’s domestic production. The three
fields are expected to save the country $1.5 bil-
lion annually as import bill over the next 10 years.
It would also earn the government $30 billion
through taxes, royalties and profit petroleum.
» Twenty-five years after it established Dakshin
Gangotri, the first permanent research station in
the South Polar Region, India is all set to build
the third such centre in Antarctica to take up cut-
ting-edge research in various fields. The new sta-
tion, tentatively named Bharti, is scheduled to be
operational by 2012, making India a member of
an elite group of nine nations that have multiple
stations in the region. Argentina, Australia, Chile,
China, France, Russia, the UK and US have mul-
tiple stations in Antarctica.
42
 Section -3 (Current Affairs)
Dakshin Gangotri, set up in 1984, was buried in
ice and had to be abandoned in 1990, a year after
India set up Maitri, the second station. The Na-
tional Centre for Antarctic & Ocean Research
(NCAOR), Goa, will set up the new station on
Larsmann Hill, 3,000 km from Schirmacher Oa-
sis, where Maitri stands. While Maitri was more
than 100 km from the Antarctic Sea, Bharti will
be on a promontory by the sea.
Bharti, like Maitri, will also conduct research on
seismic activity, climate change and medicine. The
station will be a compact structure of 30x50
metres, accommodating 25 scientists. While liv-
ing in Antarctica, where temperatures range from
-89 degrees Celsius in winter to -25 degrees Cel-
sius in summer, can be tough, constructing a per-
manent structure is a huge challenge.
Experiments in extreme cold climates, as in the
polar region, have contributed immensely to sci-
entific developments. India was admitted to the
Scientific Committee on Antarctic Research
(SCAR), an international body that coordinates
scientific activities in the region, on October 1,
1984. India holds the vice-chairman’s post in the
panel.
» The government has given its clearance for the
development of a communications satellite that
would have a GPS-based navigation system. The
approval came at the meeting of the Cabinet
chaired by Prime Minister Manmohan Singh. The
design and development of GSAT-10 spacecraft
would cost Rs 735 crore with a foreign exchange
component of Rs 634 crore, the government said.
The 3.3-tonne satellite, one of the heavier space-
crafts to be developed by space agency ISRO, will
replace INSAT 2E and INSAT 3B, an official re-
lease said.
The GSAT-10 satellite will have 12 high power
Ku-band transponders, 12 C-band and 12 extended
C-band India coverage transponders that would
create additional capacity for direct-to-home like
operations.
Copyright © 2009 | WWW.UPSCPORTAL.COM
» India has completed the design of Chandrayaan-
2, its next mission to the moon—this time in col-
laboration with Russia—that would have a Lander
and Rover which can collect samples of the lunar
soil and analyse them and send back the data.
The Chandrayaan-2 mission would have an or-
bital flight vehicle, constituting an Orbital Craft
(OC) and a Lunar Craft (LC), which would carry a
soft landing system up to Lunar Transfer Trajec-
tory (LTT).
The target location for the Lander-rover would
be identified using data from instruments of
Chandrayaan-1.While ISRO will be developing
the orbiter, it will be Russia's job to make the
Lander and Rover. Additional scientific payloads
would be acquired from international scientific
community.
» The abrupt end of the moon mission
Chandrayaan-I on August 29, 2009, has tempo-
rarily buried India’s dream of bettering China in
the field of moon exploration. While the Indian
mission was called off 10 months after it was
launched and 14 months before its scheduled ter-
mination, the Chinese mission Chang’e 1
(launched on October 24, 2007), after having com-
pleted its original tenure of one year, was given a
four months extension and was finally terminated
on March 1, 2009.
Importantly, Japan, the other Asian space faring
nation, has also done well in the field of moon
exploration. Kaguya, the Japanese probe launched
on September 14, 2007, successfully orbited the
moon for 20 months before it was made to crash
on the lunar surface on June 10, 2009.
Chandrayaan-I was launched on October 22, 2008.
It had to be called off due to snapping of radio
link.
» India will host World Tiger Summit in 2010
where wildlife experts from various countries are
expected to congregate to deliberate on conserva-
tion of diminishing striped cats in the wild.
43
 Section -3 (Current Affairs)
"Rajasthan will be hosting the World Tiger Sum-
mit at Ranthambore in October or November.
About 200 experts from across the countries are
to participate in the summit, including those from
the world renowned organisation, Global Tiger
Initiative.
With over 44 royal big cats, Ranthambore Tiger
Reserve will be showcased as a role model to del-
egates attending the summit being held for the
first time in the country which is home to around
1,400 endangered species.
» Sonia Sotomayor is the first
Hispanic to be sworn-in as the
US Supreme Court judge. She
also became the first high
court member to have her oath-taking made avail-
able to TV cameras.
» The Pakistan government has decided to confer
its highest civilian award, Sitara-e-Imtiaz, post-
humously on Gandhian Nirmala Deshpande for
working towards peace, harmony and cordial re-
lations between India and Pakistan. It is for the
first time that services of any Indian woman to
public life and her contribution to building amity
in the region had been acknowledged by the Pa-
kistan government.
»
Stefania Fernandez has won the
Miss Universe pageant 2009. Miss Do-
minican Republic Ada Aimee De la
Cruz was first runner-up and Miss
Kosovo Gona Dragusha was second
runner-up. The pageant was held at
Nassau, Bahamas.
» Baitullah Mehsud, Pakistan’s most feared ter-
rorist commander who established the Taliban as
a force in huge swathes and unleashed attacks
across the country, is killed in a US missile attack
on the house he was hiding in on aug 7,2009.
» C. Rangarajan has been appointed as the head
of Prime Minister’s Economic Advisory Council
Copyright © 2009 | WWW.UPSCPORTAL.COM
(PMEAC). The other members of PMEAC are: M.
Govinda Rao, V.S. Vyas, Suman Bery and Saumitra
Chaudhari.
»
Dr V.K. Saraswat has been ap-
pointed as the Director-General of the
Defence Research and Development
Organisation (DRDO). He will also be
the new Secretary, Department of De-
fence Research and Development, be-
sides being the Scientific Advisor to Defence Min-
ister.
» U.D. Choubey has taken over as Director Gen-
eral of Standing Conference of Public Enterprises
(SCOPE), the apex body of public sector units.
» Just six months after the Indian Navy was given
charge of the country’s entire coastal security, it
announced a revised maritime policy on August
28, 2009. The Navy will now have an even sharper
focus on the neighbourhood of the country. This
means securing the trade routes in the Indian
Ocean region; extending the reach of the Navy to
project India as a major force and also preventing
Mumbai-style sea-borne invasions by terrorists.
The 2009 edition of the Indian Maritime doctrine
was released by the Chief of Naval Staff, Admiral
Suresh Mehta. The original doctrine was published
in 2004 to provide a common understanding of
universally applicable maritime concepts, not only
for the forces but also for the public at large. This
revision was needed on account of the rapidly
changing geo-strategic environment and transfor-
mational changes in the maritime domain.
» As per a WHO study, India ranks 171 out of the
175 countries in the world in public health spend-
ing. This is less than some of the sub-Saharan Af-
rican countries. For a country of one billion, In-
dia spends 5.2% of the GDP on healthcare. While
4.3% is spent by the private sector, the govern-
ment continues to spend only 0.9% on public
health. When the economic growth index is mov-
ing forward, the wellness index is dipping.
44
 Section -3 (Current Affairs)
While India ranks among the top 10 countries for
communicable disease, it is, today, world leader
of chronic diseases like diabetes, hypertension and
coronary artery disease.
One of the key findings of the commission was
that by improving the health condition, the
economy of the country will improve. But it has
been reverse in India. There is growth in GDP
but there has been no increase in healthcare spend-
ing. This inadequate public health spending has
forced the public to depend on private sector.
India’s health scenario currently presents a con-
trasting picture. While health tourism and pri-
vate healthcare are being promoted, a large sec-
tion of Indian population still reels under the risk
of curable diseases that do not receive ample at-
tention of policy-makers.
» Making the process of paying taxes simpler for
the common man has always been on top of the
UPA’s agenda. This was amply demonstrated to-
day with the government initiating radical tax
reforms by releasing the direct tax draft code that
aims to moderate tax rates and at the same time
tries to make it easier for a layman to understand
and calculate his tax liability.
The reform of the tax regime introduced in 1961
is based on the objective of having a tax system
that is simpler, fairer, and easy to administer. The
specific objectives of the measures are to improve
the responsiveness of the tax system, that is, to
enhance the automaticity in the increase in tax
revenues with increases in economic activity; im-
prove tax administration by simplifying the tax
system; and, lastly, promote tax compliance ob-
jective as to reduce the scope for disputes and
minimize litigation.
The goal of the new tax code is to consolidate and
amend all direct taxes and simplify language to
ensure that the law can be reflected in the return
form. The aim is also to reduce scope for litigation
and provide flexibility in accommodating changes
without need for frequent amendments.
Copyright © 2009 | WWW.UPSCPORTAL.COM
» The Centre, West Bengal government and the
Gorkha Janmukti Morcha (GJM) have agreed to
scrap the Darjeeling Gorkha Hill Council (DGHC)
and bring in its place an alternative administra-
tive framework for the hill district to be finalised
through mutual consultation and agreement. At a
tripartite meeting of representatives of the Cen-
tre, led by Union home secretary G.K. Pillai, of
West Bengal government led by chief secretary
A.K. Chakrabarty and of GJM led by Anmole
Prasad, it was decided that the DGHC Act, 1988
would be repealed and the proposal for establish-
ment of a hill council under the Sixth Schedule of
the Constitution be dropped.
The press statement, however, makes no refer-
ence to the GJM’s central demand for a separate
Gorkhaland: a pointer to such a drastic conces-
sion being almost ruled out. The alternative ad-
ministrative framework to be worked out by the
yet-to-be-named interlocutor for the Gorkha talks
will have due constitutional status and will be
supported by a full-fledged Act. It is also likely to
be given more powers than DGHC. However,
working out its terms is likely to be a long-drawn
affair, and, in all probability, the new framework
may come well after installation of the new gov-
ernment in West Bengal.
» In a major success in its ‘Look East' policy, In-
dia, on August 13, 2009, signed a Free Trade
Agreement (FTA) with the 10-member Associa-
tion of South East Asian Nation (ASEAN) bloc that
would eventually eliminate duty on 80% of the
goods traded at present by 2016. The two sides
have set an ambitious target of achieving an in-
crease of $10 billion worth of trade in the first
year after the agreement comes into force from
January 2010. India's current bilateral trade with
the ASEAN bloc is worth $40 billion.
The agreement was signed by Commerce and In-
dustry Minister Anand Sharma and Economic
Ministers of ASEAN in Bangkok. Considered as a
major breakthrough, the pact comes after six years
of intense negotiations. The FTA would bring
down tariffs on electronics, chemicals, machin-
ery and textile goods.
45
 Section -3 (Current Affairs)
However, talks on software and information tech-
nology services have been postponed for Decem-
ber 2009. This is one area where Indian exporters
of services could have brought in good business
and also offset setbacks received in the European
and US markets during the downturn. Of the to-
tal $936 billion worth of ASEANn imports, ser-
vices import account for $180 billion which is the
primary focus of Indian industry.
ASEAN comprises Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam.
Lobbying from the domestic industry has led to
India excluding 489 items from the list of tariff
concessions and 590 items from the list of tariff
elimination to address sensitivities in agriculture,
textiles, auto, chemicals, crude and refined palm
oil, coffee, tea, pepper, etc.
» Defence Minister A.K.
Antony went on a three-day
official visit to Maldives from
August 20, 2009. He led a
high-level delegation com-
prising Defence Secretary
Pradeep Kumar; DG, Armed Forces Medical Ser-
vices, Lt Gen N.K. Parmar; DG, Coast Guard, Vice
Admiral Anil Chopra and Deputy Chief of Navy
Staff Vice Admiral D.K. Joshi.
During his visit, Mr Antony held bilateral discus-
sions with his counterpart Ameen Faisal on ways
of expanding defence cooperation between the
two countries. He also attended the closing ses-
sion of the India-Maldives Friendship function,
besides paying a visit to the Indira Gandhi Me-
morial Hospital, the most visible symbol of Indo-
Maldives cooperation and friendship.
» Amid an uncertain political situation back home,
Prime Minister of Nepal, Mr Madhav Nepal ar-
rived in New Delhi on August 7, 2009 on a five-
day visit to India—his first to the country since
he assumed office nearly three months ago.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Several important bilateral issues, including the
proposed revision of the friendship and trade trea-
ties and the finalisation of a revised extradition
treaty figured prominently in the discussions be-
tween the two sides.
Besides meeting Prime Minister Manmohan Singh,
the Nepalese Prime Minister also meet President
Pratibha Patil, UPA chief Sonia Gandhi, External
Affairs Minister S.M. Krishna, Finance Minister
Pranab Mukherjee and Home Minister P.
Chidambaram.
Prime Minister Manmohan Singh extended India’s
full support to the peace process in Nepal and also
discussed the broad contours of a proposed revised
trade treaty between the two countries. The two
leaders had a one-on-one meeting lasting about
an hour during which they discussed the entire
gamut of bilateral relations as well as international
issues.
Intensifying economic partnership between the
two countries remained at the centre of the dis-
cussions with the focus on investment in hydro
power sector. The issue of the misuse of Nepal's
territory by anti-Indian forces also came up dur-
ing the talks.
Nepalese Prime Minister also addressed captains
of the Indian industry, inviting them to invest lib-
erally in the Himalayan Nation in various sectors.
He assured them of conducive atmosphere for in-
dustrial growth. The visiting dignitary identified
hydro power, roads, bridges, infrastructure con-
struction, tourism, agro-processing and financial
services as potential areas of investment.
Political events in Nepal since May this year had
shaken the confidence of Indian entrepreneurs
after attacks by militant trade unions on a few
firms, including a well-known fast moving con-
sumer goods firm. With India-Nepal trade ex-
pected to touch Rs 15,000 crore ($3 billion) in
2009-10, the commerce ministers of the two coun-
tries discussed the proposed revised treaty to
widen the scope of bilateral trade.
46
 Section -3 (Current Affairs)
» On August 4, 2009, India and Singapore signed
a joint action plan on tourism cooperation. Minis-
ter of Tourism Kumari Selja and Singapore Senior
Minister of State for Trade and Industry and Edu-
cation S. Iswaran witnessed the signing by tour-
ism officials of India and Singapore. The plan re-
iterates provisions of cooperation enshrined in the
bilateral agreement on tourism signed between
India and Singapore on January 24, 1994.
India and South Korea have signed a comprehen-
sive economic partnership agreement which will
make Korean consumer products and auto parts
cheaper in India. The deal excludes fully built-up
vehicles and provides for easier movement of con-
tractual service providers and professionals be-
tween the two countries and treatment of invest-
ments from one another’s country on a par with
domestic investments.
This is the second CEPA signed by India, the other
being with Singapore. This is also India’s first bi-
lateral trade agreement with an OECD country.
As per the agreement, South Korea will eliminate
duties on 93% of its industrial and agricultural
products and India will do the same on 85% of its
goods. India has excluded sensitive items such as
farm products, textile items and built-up automo-
biles from tariff elimination commitments. Du-
ties will be phased out on most products in the
next eight years.
» Japanese voters swept the opposition to a his-
toric victory in an election on August 30, 2009,
ousting the ruling conservative party and hand-
ing the untested Democrats the job of breathing
life into a struggling economy.
The win by the Democratic Party of Japan (DPJ)
ended a half-century of almost unbroken rule by
the Liberal Democratic Party (LDP) and breaks a
deadlock in Parliament, ushering in a government
that has promised to focus spending on consum-
ers, cut wasteful budget outlays and reduce the
power of bureaucrats.
Democratic Party leader Hatoyama, grandson of
Copyright © 2009 | WWW.UPSCPORTAL.COM
a former Prime Minister, will take over as the new
Prime Minister.
The ruling party loss ended a three-way partner-
ship between the LDP, big business and bureau-
crats that turned Japan into an economic power-
house after the country’s defeat in World War II.
That strategy foundered when Japan’s “bubble”
economy burst in the late 1980s and growth has
stagnated since. The Democrats will have to move
fast to keep support among voters worried about
a record jobless rate and a rapidly ageing society
that is inflating social security costs.
The Democrats have pledged to refocus spending
on households with child allowances and aid for
farmers while taking control of policy from bu-
reaucrats. The Democrats also want to forge a dip-
lomatic stance more independent of the United
States, raising concerns about possible friction in
the alliance.
» Lt Gen Chhatraman Singh
Gurung, who received training
at the Indian Military Academy,
Dehradun, was appointed to
head the Nepal Army on August
9, 2009, after his controversial
predecessor General Rukmangad
Katawal went on a month-long leave ahead of his
retirement in September. Gurung is the first from
the rank of commoners to head the army, which
has been led by the country’s elite and the aris-
tocracy. The change of guard at the helm of
95,000-strong Nepal Army came amid a contin-
ued blockade of Parliament by the Maoists de-
manding Katawal’s removal. The Maoists, whose
eight-month-old government fell in May 2009
after the reinstatement of Katawal, had sought his
dismissal and a debate in Parliament on the issue
of “civilian supremacy” in the country.
» The world has earmarked a staggering $11.9 tril-
lion to wriggle out of the financial crisis, the sum
which is enough to finance a $1,779 handout for
every person living on the planet, according to
the International Monetary Fund.
47
 Section -3 (Current Affairs)

Most of the cash has been handed over by devel-
oped countries, for whom the bill has been $10.2
trillion, while developing countries have spent
only $1.7 trillion the majority of which is in cen-
tral bank liquidity support for their stuttering fi-
nancial sectors.
The whopping total cost of crisis is equivalent to
around a fifth of the entire globe's annual eco-
nomic output and includes capital injections
pumped into banks in order to prevent them from
collapse, the cost of soaking up so-called toxic as-
sets, guarantees over debt and liquidity support
from central banks.
» India and China have agreed to jointly fight any
attempt by Western nations to link trade with
climate change and impose trade-related penal-
ties on developing countries that fail to meet en-
vironmental standards.
ing Beijing tremendous clout over its neighbour's
economy. South Korea, another neighbour, ac-
counted for 6.1%.
» The Solar Mission under the National Action
Plan on Climate Change has got an in-principle
nod from the Prime Minister with an ambitious
target of 20,000 MW solar power by 2020 being
accepted.
» Australia has decided to provide more than 80
lakh dollars to set up Australia India Institute in
Melbourne. A joint project of the University of
Melbourne, La Trobe University and the Univer-
sity of New South Wales, the new Institute will
help Australians to know and understand India
better.

India and China have agreed to coordinate their

views on different aspects of climate change be-
fore every major international meeting on the
subject. These are expected to be spelt out in form (IMP) Get UPSCPORTAL, IAS, Jobs,
of an agreement. Both countries want to negoti-
ate with West for higher levels of financial assis-
Results, Notification ALERTS in Email.
tance and technology transfer in return for prom-
ises to do their best to tackle environmental prob- Step-1: Fill Your Email address in form below. you will get
lems. But they would not agree to any legal bind- a confirmation email within 10 min.
ing on reducing emission norms because it would
come in the way of their development goals. In- Step-2: Varify your email by clicking on the link in the email.
dia and China will also not agree to the creation IMP: (check Inbox and Spam folders)
of any trade barriers on the excuse of climate
change. India has also suggested China to consider Step-3: Done! Now you will regular Alerts on your email.
reducing carbon dioxide levels in power plants
supplied by it to India. This would be part of the
mitigation activities that the two countries expect
to carry out jointly.
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http://upscportal.com/civilservices/newsletter
In a first, China has surpassed US to become Japan's
largest trading partner. The move is expected to
have a softening effect on China-Japan disputes
over an island and have wide implications in Asian
region including India. Japan's trade with the US
accounted for just 13.7% of its total world trade
in the January-June period. Its trade with China
accounted for 20.4% of the total trade volume giv-

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48
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49
 Section -4 (SPORTS)
Sports
» Indian Billiards prodigy Pankaj Advani eased
through defending champion Mark Russel to win
the World Professional Billiards Championship-
2009 September 6, 2009. Advani won 2030-1253
against defending champion Mark Russel. With
this win, Advani has now become only the sec-
ond Indian to claim the World Professional Bil-
liards Championship title in 139 years of its his-
tory. Indian legend Geet Sethi ear-
lier won the title back in 1992.
» Advani was awarded with the
prestigious Padma Shri in 2009, the
Rajiv Gandhi Khel Ratna in 2006,
the Rajyotsava Award in 2007, Vi-
sion of India's "International Indian"
Award in 2005, Senior Sportsperson
of the Year 2005, the Sports Writ-
ers' Association of Bangalore's, the
Bangalore University ' Sportsperson
of the Year in 2005, the Hero India
Sports Award (HISA) in 2004, the Rajeev Gandhi
Award in 2004, the Arjuna Award in 2004, the
Indo-American Young Achiever's Award - 2003,
and the Sports Star Sportsperson of the Year 2003.
» The 12th IAAF World Championships in Ath-
letics were held in Berlin, Germany from Auguast
15–23, 2009. The majority of events took place in
the Olympiastadion, while the marathon and race-
walking events started and finished at the
Brandenburg Gate. United States, with 10 gold, 6
silver and 6 bronze medals, topped the medals
tally, followed by Jamaica, Kenya, Russia, Poland
and Germany.
» Sprint king Usain Bolt proved
lightning does strike twice as he
smashed his own 100m world
record, exactly one year after setting
the previous benchmark at the
Beijing Olympics. Bolt took 33
strides down the track at Berlin’s Olympic Sta-
Copyright © 2009 | WWW.UPSCPORTAL.COM
dium and sliced the largest chunk off the world
record since electronic timing was introduced. Bolt
pushed himself and the result was a stunning time
of 9.58 seconds in the men's 100-metre final:
eleven-hundredths of a second better than his
game-changing mark of 9.69 in Beijing.
His world record performance was all the more
remarkable as the 22-year-old
was involved in a car crash in Ja-
maica in April 2008 when his car
overturned in a ditch off a high-
way. Bolt had a small operation
on his left foot, but his lightning
strides showed nothing to be
wrong with his feet.
Jamaica’s sprinting dominance
continued in sizzling style when
Olympic champion Shelly-Ann
Fraser clocked 10.73 seconds to
win the women’s world 100
metres. Now, only Florence Griffith-Joyner and
Marion Jones remain among those who have run
faster than Fraser.
Usain Bolt also shattered his own 200 metres world
record to win gold at the world championships in
a breathtaking 19.19 seconds and secure his place
as the greatest sprinter ever seen.
»Olympic champion Lin
Dan has become the first bad-
minton player to clinch a hat-
trick of world titles, beating
fellow Chinese Chen Jin in
straight games to win the men's singles title of
this mega event held at the Gachibowli stadium,
Hyderabad. Lin had won the earlier World Cham-
pionship in 2006 and 2007, apart from winning
four All-England titles in 2004, 2006, 2007 and
2009.
In all-Chinese women’s singles final Lu Lan beat
Xie Xingfang in straight sets to win the world title.
50
 Section -4 (SPORTS)
Danish mixed pair Thomas Laybourn and Kamilla
Rytter Juhl thrashed the two times World Cham-
pions from Indonesia, Nova Widianto and Lilyana
Natsir to win the mixed-doubles title.
The Chinese pair of Fu Haifeng and Cai Yun de-
feated Koreans Lee Young Dae and Jung Jae Sunge
to win the men’s doubles title.
China’s Zhao Tingting and Zhang Yawen won the
women’s doubles final against Cheng Shu and
Zhao Yunlei, also of China.
» V. Diju overcame a back strain and Jwala Gutta
battled a stiff left (playing) arm to create history
by becoming the first Indian mixed doubles pair
to win a Grand Prix Gold. The third-seeded Indi-
ans pulled off a stunning 24-22, 21-18 win over
Indonesians Hendra Aprida Gunawan and Vita
Marissa in the final of the Chinese Taipei Gold
Grand Prix and walked home with $11,560 as prize
money.
»Vijender Singh has been ranked
second in the 75 kg category by the
International Boxing Association.
Akhil Kumar (57 kg) and Jitender
(51 kg) are placed 9th and 13th in
their respective categories. In the 48
kg category, Thokchom Nanao Singh is at fifth
spot.
» England regained the Ashes with a sweeping
197-run victory over Australia in the fifth test at
the Oval, despite a battling century from Michael
Hussey which threatened to take the game into a
fifth day.
Australia, who needed at least a draw to retain
the Ashes they won back by crushing England 5-
0 in 2006-7, were dismissed for 348 in their sec-
ond innings after being set a record 546 for vic-
tory. The series was tied 1-1 after Australia won
the fourth test at Headingley within three days.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Earlier, Australia had batted with grim determi-
nation through the final day to earn a draw in the
third Ashes Test against England. Centurion
Michael Clarke and Marcus North shared a part-
nership of 185 and Shane Watson and Michael
Hussey also made patient half-centuries in a total
of 375 for five which ensured they would go into
the fourth test only 1-0 down in the series.
Australia completed a crushing victory over En-
gland in the fourth test to level the Ashes series
at 1-1. The touring side ended England’s enter-
taining lower order resistance 20 minutes after
lunch on the third day, Mitchell Johnson bowl-
ing Graham Onions to dismiss the hosts for 263
and seal victory by an innings and 80 runs.
» An illness-depleted New Zealand were bam-
boozled in the face of pace and spin as Sri Lanka
cruised to a 202-run victory in the first Test to
lead the two-match series. The Kiwis, set an im-
probable target of 413 runs, collapsed to 210 all
out in their second innings before tea on the fifth
and final day at the Galle International Stadium.
» Sri Lanka clinched second spot behind South
Africa in the official rankings as they swept aside
New Zealand by 96 runs in the final cricket Test
to sweep the series 2-0. Left-arm spinner Rangana
Herath claimed five wickets as the Kiwis, set an
improbable victory target of 494 runs, were
bowled out for 397 in their second innings just
before tea on the fifth day.
» Teenager Umar Akmal
smashed an unbeaten 102 off 72
balls as Pakistan won the fourth
one-dayer by 146 runs to record
their first win on a dismal tour
of Sri Lanka. Umar's maiden in-
ternational century and a dogged 89 from skipper
Younus Khan lifted Pakistan to 321-5 after the
tourists elected to bat in the day-night match at
the Premadasa stadium.
» Pakistan clinched a 52-run victory over Sri
Lanka in a one-off Twenty20 international to fin-
51
 Section -4 (SPORTS)
ish their losing tour on a high on Wednesday.
Pakistan, who lost the test series 2-0 and the one-
day series 3-2, dominated the match with skipper
Shahid Afridi guiding his team to a competitive
172 for five in 20 overs.
» Bangladesh raced to a five-wicket defeat of Zim-
babwe in the fifth match to win the series 4-1.
Zimbabwe’s Charles Coventry equalled the high-
est individual One-day International score, but it
also became the highest ODI score in a losing
cause. Coventry’s big-hitting party was gate-
crashed by Tamim Iqbal, who helped Bangladesh
wrap up the five-match series. Coventry blasted
an unbeaten 194 to equal former Pakistan opener
Saeed Anwar’s 12-year record as Zimbabwe piled
up 312-8 in their 50 overs. But Bangladesh opener
Tamim then hit his country’s highest individual
score of 154 as the tourists took victory with 13
balls to spare.
»
Subrata Paul was hero and sav-
iour rolled into one for India. The
mercurial goalkeeper made three
brilliant saves in a nerve-wracking
penalty shootout as India overcame
a strong Syria 6-5 to retain the
ONGC Nehru Cup. The tournament was held at
New Delhi.
» Tiger Woods cruised to a bogey
free, final round three-under 69 and
a three shot victory to lift the Buick
Open title for a third and possibly
final time. The troubled Detroit
auto-maker is expected to pull out
its sponsorship which will lead to the tournament
disappearing from the PGA Tour calendar in 2010.
» Tiger Woods created history on the par-70
greens of Firestone Country Club clinching the
World Golf Championships-Bridgestone Invita-
tional for a record seventh time at Akron in Ohio
(USA). India’s Jeev Milkha Singh tumbled down
the ladder playing his worst card of the event (six
over 76) to finish tied 64.
Copyright © 2009 | WWW.UPSCPORTAL.COM
» Y.E. Yang, a 37-year-
old South Korean who
was in PGA Tour quali-
fying school nine months
ago, has become the first
Asian-born player to capture a major title. Even
more memorable was that he beat Tiger Woods
to win the title.
» After 29 false starts, the Vijay Mallya-owned
Force India finally nixed the hoodoo and scored
their maiden Formula One points with Giancarlo
Fisichella finishing second in the Belgian Grand
Prix. The 36-year-old Italian driver, rumoured to
have one foot in Ferrari, shunned extravagance to
run a flawless race and trailed Kimi Raikkonen’s
Ferrari, which had snatched the lead using the
Kinetic Energy Recovery System, all the way for
a podium finish and earns eight valuable points.
The Italian finished less than a second behind
Raikkonen.
» Juan Martin del Potro ended Roger Federer’s
run of dominance at the U.S. Open on Sep 14, 2009
stunning the top-ranked Swiss great in five sets to
win in his first Grand Slam final. The 20-year-old
Argentine prevailed 3-6, 7-6(5), 4-6, 7-6(4), 6-2
to snap Federer’s streak of five straight U.S. Open
titles. The sixth-seeded del Potro had not beaten
Federer in their six previous encounters.
» Federer had won 40 consecutive matches at
Flushing Meadows. He was seeking to become the
first man since Bill Tilden in 1920-25 to win the
American championship six straight times and the
first man since Rod Laver in 1969 to win three
straight Majors in a season. He had won 33 of his
previous 34 Grand Slam matches. And he has made
the final at 17 of the past 18 Grand Slam tourna-
ments, 21 overall
» Del Potro is the first man from Argentina to
win the U.S. Open since Guillermo Vilas in 1977.
» The 26-year-old Belgian Kim Clijsters won the
US Open Singles title for women, beating Caroline
52
 Section -4 (SPORTS)

Wozniacki in the final on September 13, 2009.
Clijsters won in straight sets 7-5, 6-3. She had ear-
lier beaten Venus Williams and Serena Williams
in the quarterfinal and semifinal. This is Kim's
second Grand Slam title, as she had won the US
Open in 2005.Kim Clijsters also became the sec-
ond mom to win a Grand Slam title. Earlier,
Evonne Goolagong Cawley had won Wimbledon
in 1980. Kim made a comeback into tennis world
after a two-year retirement. She was an wild-card
entry at the US Open and was unseeded. She also
became the first US Open women’s champion from
outside the top 10.
the Australian Open mixed doubles title with
Sania Mirza at the start of the season.
» Mahesh Bhupathi and his Bahamian partner
Mark Knowles continued their rampaging form
to lift their fourth ATP title together, beating sev-
enth seeds Max Mirnyi and Andy Ram in straight
sets in the finals of $ three million Rogers Cup.
The third seeds won 6-4, 6-3 to clinch their first
title at an ATP World Tour Masters 1000 tennis
tournament.

» Fourth seeded US tennis players, Serena Will-

iams and Venus Williams, took over top seeds
Cara Black of Zimbabwe and Liezel Huber of the
United States in straight sets of 6-2, 6-2 to clinch
the women’s doubles title at US Open on 2009- (IMP) Get UPSCPORTAL, IAS, Jobs,
09-14.This win will be the 10th Grand Slam Results, Notification ALERTS in Email.
doubles crown for the Williams sister with the
prize money of 420,000 dollars. This is the third Step-1: Fill Your Email address in form below. you will get
Grand Slam for Williams sister this year, after the a confirmation email within 10 min.
clinched the crowns at Wimbledon and Austra-
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US Open title back in 1999. IMP: (check Inbox and Spam folders)

» Leander Paes clinched his 10th Grand Slam title Step-3: Done! Now you will regular Alerts on your email.
after winning his sensational battle against es-
tranged friend Mahesh Bhupathi in the US Open
men’s doubles final. Fourth seeds Paes and his
Czech partner Lukas Dlouhy scripted a thrilling
3-6 6-3 6-2 win over third seeds Bhupathi and Click Below Link to get Free Newsletter:
Mark Knowles of Bahamas in the championship http://upscportal.com/civilservices/newsletter
match on September 13, 2009. This is for the first
time that Paes and Bhupathi faced each other in
the title clash of a Grand Slam.

» For Paes it is his fifth men’s doubles Grand Slam

crown, second with Dlouhy and 41st overall in
his career. It was also second title of the year for
the seasoned Paes, who won French Open in June
along with Dlouhy. The defeat for Bhupathi means
that he has not won a men’s doubles Grand Slam
crown in seven years. Interestingly, his last vic-
tory came at the US Open only when he tri-
umphed with Max Mirnyi in 2002. He had won

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53
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54
 Section -5 (AWARDS)
AWARDS
» Major Amit Oscar Fernandes of Maratha Light
Infantry, Major Deepak Tewari of Electronic and
Mechanical Engineers, Naik Rishikesh Gurjar of
Rajput Regiment have been awarded Kirti Chakra
for exceptional gallantry shown during anti-in-
surgency operations in J&K, along with para-
trooper Shabir Ahmad Malik of 1 Para Regiment,
who laid down his life in gun-battle in Kupwara.
» Indian sanitation expert
Bindeshwar Pathak has been
awarded the Stockholm Water
Prize, 2009, the most prestigious
award for outstanding achieve-
ment in water-related activities.
The founder of Sulabh Sanitation
Movement in India, Pathak is known around the
world for his wide-ranging work in the sanitation
field. He has worked to improve public health,
has advanced social progress, and has improved
human rights in his home nation and other coun-
tries.
» The Stockholm Water Prize, which was first
presented in 1991, includes a $150,000 award and
a crystal sculpture. It honours individuals, insti-
tutions or organisations whose work contributes
broadly to the conservation and protection of
water resources and improves the health of the
planet's inhabitants and ecosystems.
» The Board of Trustees of the Ramon Magsaysay
Award Foundation (RMAF) has selected six indi-
viduals from Burma, China, India, the Philippines,
and Thailand to receive Asia’s premier prize.
The Awardees are:-
» Krisana Kraisintu, from Thailand. She is being
recognized for “her placing pharmaceutical rigor
at the service of patients, through her untiring
and fearless dedication to producing much-needed
generic drugs in Thailand and elsewhere in the
developing world.”
Copyright © 2009 | WWW.UPSCPORTAL.COM
» Deep Joshi, from India. He is being recognized
for “his vision and leadership in bringing profes-
sionalism to the NGO movement in India, by ef-
fectively combining ‘head’ and ‘heart’ in the trans-
formative development of rural communities.”
Yu Xiaogang, from China. He is being recognized
for “his fusing the knowledge and tools of social
science with a deep sense of social justice, in as-
sisting dam-affected communities in China to
shape the development projects that impact their
natural environment and their lives.”
» Antonio Oposa, Jr., from the Phil-
ippines. He is being recognized for
“his path-breaking and passionate
crusade to engage Filipinos in acts
of enlightened citizenship that
maximize the power of law to pro-
tect and nurture the environment
for themselves, their children, and generations still
to come.”
» Ma Jun, from China. He is being recognized for
“his harnessing the technology and power of in-
formation to address China's water crisis, and
mobilizing pragmatic, multi-sectoral, and collabo-
rative efforts to ensure sustainable benefits for
China's environment and society.”
» Ka Hsaw Wa, from Burma. He is being recog-
nized for “his dauntlessly pursuing non violent yet
effective channels of redress, exposure, and edu-
cation for the defence of human rights, the envi-
ronment, and democracy in Burma.”
» The RMAF confers the award annually for those
in Asia, who have achieved excellence in six cat-
egories, viz government service; public service;
community leadership; journalism, literature and
creative communication, arts; peace and interna-
tional understanding; and emergent leadership.
Actually, there were only the first five categories
in the beginning and only from 2000 the category
55
 Section -5 (AWARDS)

of emergent leadership was added using a grant

received from the Ford Foundation.

» Major Mohit Sharma, who laid down his life

fighting militants infiltrating from Pakistan into
J&K in March 2009, has been awarded with Ashok
Chakra, the highest peacetime gallantry award of
the country, along with Major D. Sreeram Kumar.
Major Sharma of Ghaziabad belonged to the Elite
1 Para special forces of the Army. He was deputed
to Rashtriya Rifles in Kashmir. He along with four
others was killed while fighting terrorists in the
Hafruda forest of Kupwara district. This was one (IMP) Get UPSCPORTAL, IAS, Jobs,
of the biggest attempts to infiltrate by militants
even before the snow in the high mountain passes
Results, Notification ALERTS in Email.
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it led to a fierce gun-battle. Four terrorists were Step-1: Fill Your Email address in form below. you will get
killed, two of them by Major Sharma despite be- a confirmation email within 10 min.
ing fatally injured.
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» Major D. Sreeram Kumar of Artillery regiment
is presently serving in Assam Rifles. He was Step-3: Done! Now you will regular Alerts on your email.
awarded in recognition of his service in the Op-
eration Hifazat in Manipur. He eliminated 12 and
apprehended 23 terrorists and recovered 12 weap-
ons. He has also created a vibrant intelligence net-
work. Click Below Link to get Free Newsletter:
http://upscportal.com/civilservices/newsletter
» Eminent Sanskrit poet Satya
Vrat Shastri has been presented
the prestigious 42nd Jnanpith
Award. The award was conferred
to him by the Princess of Thai-
land, Maha Chakri Sirindhorn, for
his “outstanding contribution to the enrichment
of Indian literature.” He is the first Sanskrit poet
to be conferred the award since its inception.

» The award recognises Dr. Shastri for introduc-

ing a number of new genres in Sanskrit writing
such as autobiography, diary and collections of
letters in verse. His magnum opus, “The
Ramayana: A Linguistic Study”, is the first ever
linguistic appraisal of the Valmiki Ramayana and
also of any existing Sanskrit work.

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56
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57
 Section -6 (IAS Mains Special : Science And Technology)

Science & Technology

International Year of
Astronomy 2009
UNESCO and the In-
ternational Astronomi-
cal Union (IAU)
launched 2009 as the
International Year of
Astronomy under the
theme "The Universe,
Yours to Discover".
The IYA2009 is a glo-
bal celebration of astronomy and its contributions
to society and culture, with events at national, re-
gional and global levels throughout the whole of
2009. Now, halfway through 2009, much has been
achieved and even more can be expected in the
future.
Objectives: The Galileoscope project headlines the
IYA2009. With the aim of providing low-cost tele-
scopes that offer views far better than those ob-
tained by Galileo Galilei some 400 years ago, the
venture has picked up significant pace since the
IYA2009 began. By the end of July, the first 60
000 Galileoscopes have been shipped, and a fur-
ther 100 000 are currently in production. More
than 4000 Galileoscopes have been generously do-
nated by the IYA 2009 and individuals to
organisations and schools in developing countries.
This gesture aptly demonstrates the commitment
of astronomy enthusiasts to the IYA2009 goal of
making the skies accessible to all.
But perhaps the most impressive figures for the
IYA2009 have come from the national activities
that have brought together hundreds of thousands
of people in many countries for astronomy-themed
events. For example, more than 400 000 people
gathered for the Sunrise Event on New Year’s Day
in Busan City, South Korea.
IAU
(International Astronomical
Organisation)
The IAU is the international astronomical
organisation that brings together almost 10 000
distinguished astronomers from all nations of the
world. Its mission is to promote and safeguard the
science of astronomy in all its aspects through in-
ternational cooperation. The IAU also serves as
the internationally recognised authority for assign-
ing designations to celestial bodies and the sur-
face features on them. Founded in 1919, the IAU
is the world’s largest professional body for astrono-
mers.
SCOSTA
(OS Standard for Smartcards)
In order to standardise and secure the data for
identity and related applications, Govt. of India is
deploying the smart card technology in various
applications such as Indian Driving Licences, Ve-
hicle Registration Certificates, National Identity,
Electronic Passports etc. The first major applica-
tion of this standard is the e-Passport that was
launched in India on June 25, 2008. The SCOSTA-
CL standard is upward compatible to old SCOSTA
standard.
Smart cards are secured electronic devices that are
used for keeping data and other information in a
way that only "authorized" users are permitted to
see or write the data.
A technical Sub-committee was set up to draw
operating system specifications for the smart card
based Indian Driving Licences (DL) and Vehicle
Registration Certificates (RC) on in June 2001. The
SCOSTA specifications were defined primarily by
IIT Kanpur alongwith this committee. The
SCOSTA specification is largely compliant with
the international ISO 7816 standard (parts 4 to 9)
for smart cards. Subsequently, the standards were

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58
 Section -6 (IAS Mains Special : Science And Technology)
enhanced to support secure messaging, which is
necessary in many applications involving contact-
less communications. The enhanced standard
(SCOSTA-CL) was defined by IIT Kanpur and was
released to public in July 2006.
SCOSTA can be implemented on any micropro-
cessor based smart card. The applicatons specify
the memory requirement for the card. Usually,
4KB permanent storage (EEPROM) on the micro-
processor is sufficient for DL and RC applications,
16KB for the national ID and 64KB for the e-Pass-
port. The use of any other media (such as optical
stripes) for additional data storage is not prescribed
by these application specifications.
Objectives: The SCOSTA project was initiated
with the following principal objectives.
Standardization of Information
The card layout, data fields and other relevant
information stored on the card and the back-end
have been standardized to ensure that informa-
tion on all cards (issued wherever in India) is uni-
form and can be read and written all over India.
Inter-operability
Since the Indian applications are to be deployed
nationwide, it is essential for the standards to be
interoperable and therefore, SCOSTA specifica-
tions deal fully with this aspect. All non-
interoperable features are discouraged and are
therefore non-compliant and do not form part of
SCOSTA specifications
Multi Vendor Support / Non-Propri-
etary
Keeping in view the need for future up-gradation,
multi vendor support and the critical requirement
of the specifications and product to be non-pro-
prietary, it is essential to have the operating sys-
tem specification to be open and standard.
Security and Integrity of Data
A microprocessor based smart card can ensure that
only authorized persons can read or write the ap-
Copyright © 2009 | WWW.UPSCPORTAL.COM
plication data stored in the card. SCOSTA sup-
ports both password based and key based authen-
tication of users. Additionally, the SCOSTA-CL
also supports the secure messaging and session keys
for communication between the reader and the
card. The application specifications include secure
key management systems that ensure that only
officials authorized to change the card data can
do so and that it is not possible to create forged
identity.
Common Services Centre (CSC)
The Government has approved a Common Ser-
vices Centres (CSCs) Scheme for providing sup-
port for establishing 100,000 Common Services
Centers in 600,000 villages of India. The Scheme,
as approved by the Government of India, envi-
sions CSCs as the front-end delivery points for
Government, private and social sector services to
rural citizens of India, in an integrated manner.
Objective & Implementation
The objective is to develop a platform that can
enable Government, private and social sector or-
ganizations to align their social and commercial
goals for the benefit of the rural population in the
remotest corners of the country through a com-
bination of IT-based as well as non-IT-based ser-
vices.
The Scheme has been approved at a total cost of
Rs 5742 Cr. over 4 years, of which the Govern-
ment of India is estimated to contribute Rs 856
Cr. and the State Governments Rs 793 Cr. The
balance resources would be mobilized from the
private sector. The Common Services Centres
would be designed as ICT-enabled Kiosks having
a PC along with basic support equipment like
Printer, Scanner, UPS, with Wireless Connectiv-
ity as the backbone and additional equipment for
edutainment, telemedicine, projection systems,
etc., as the case may be.
The Scheme is to be implemented through a Pub-
lic Private Partnership. CSCs are the primary
59
 Section -6 (IAS Mains Special : Science And Technology)
physical front-end for delivery of Government and
private services to citizens. They are one of the
three pillars of the core and support infrastruc-
ture of the National e Governance Plan for en-
abling anytime anywhere delivery of government
services, the other two being (a) the State Wide
Area Network (for Connectivity) which has al-
ready been approved by the Government for Rs
3334 Cr. and (b) the State Data Centre Scheme
(for secure hosting of data and applications) for
which the draft guidelines are under preparation.
Implementation of a mission-oriented project of
this size and scope would pose significant chal-
lenges of project management at the national level
as also in exploiting opportunities to achieve sig-
nificant economies of scale in the identification,
customization and implementation of the physi-
cal and digital infrastructure required for the
project. Further, many of the potential citizen-
centric services would lend themselves to aggre-
gation at the national level. To serve the above
objectives and to enable the State-specific imple-
mentation plans to benefit from such economies
of scale, aggregation of best practices, content pro-
viders, etc. DIT has appointed a National Level
Service Agency (NLSA) with defined Terms of
Reference to coordinate the entire activity.
The CSC Scheme has a 3-tier implementation
framework:
» At the first (CSC) level would be the local Vil-
lage Level Entrepreneur (VLE- loosely analogous
to a franchisee), to service the rural consumer in a
cluster of 5-6 villages.
» At the second/middle level would be an entity
termed the Service Centre Agency (SCA loosely
analogous to a franchiser) to operate, manage and
build the VLE network and business. An SCA
would be identified for one or more districts (one
district would cover 100-200 CSCs).
» At the third level would be the agency desig-
nated by the State- the State Designated Agency
(SDA) - to facilitate implementation of the Scheme
within the State and to provide requisite policy,
content and other support to the SCAs.
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State Wide Area Networks (SWAN)
The SWAN Scheme for 29 States & 6 Union Ter-
ritories, at an estimated outlay of Rs. 3334 Crores,
was approved by Govt. of India, in March 2005 to
set up State Wide Area Networks (SWAN), inter-
connecting each State / UT Head Quarter with
District Head Quarter and below each District
Head Quarter with the Block Head Quarters with
minimum 2 Mbps leased line.
The objective of the Scheme is to create a secure
close user group (CUG) government network for
the purpose of delivering G2G and G2C services.
The duration of project is 5 years with a pre-project
implementation period of 18 months. The project
is being implemented as a Central Sector Scheme
with Rs. 2005 Crores as Grant-in-aid from De-
partment of Information Technology and balance
fund from the State Plan fund under Additional
Central Assistance (ACA) allocation.
Nano Mission
Nano Technology is a knowledge-intensive and
"enabling technology" which is expected to influ-
ence a wide range of products and processes with
far-reaching implications for national economy
and development. The Government of India, in
May 2007, has approved the launch of a Mission
on Nano Science and Technology (Nano Mission)
with an allocation of Rs. 1000 crore for 5 years.
Nodal Agency
The Department of Science and Technology is the
nodal agency for implementing the Nano Mission.
Capacity-building in this upcoming area of re-
search will be of utmost importance for the Nano
Mission so that India emerges as a global knowl-
edge-hub in this field. For this, research on fun-
damental aspects of Nano Science and training of
large number of manpower will receive prime at-
tention. Equally importantly, the Nano Mission
will strive for development of products and pro-
cesses for national development, especially in ar-
eas of national relevance like safe drinking water,
60
 Section -6 (IAS Mains Special : Science And Technology)
materials development, sensors development, drug
delivery, etc. For this, it will forge linkages be-
tween educational and research institutions and
industry and promote Public Private Partnerships.
The Nano Mission has been structured in a fash-
ion so as to achieve synergy between the national
research efforts of various agencies in Nano Sci-
ence and Technology and launch new programmes
in a concerted fashion. International collaborative
research efforts will also be made wherever re-
quired.
The Nano Mission is an umbrella programme for
capacity building which envisages the overall de-
velopment of this field of research in the country
and to tap some of its applied potential for nation’s
development. In brief, the objectives of the
Nano-Mission are:
Objectives: Basic Research Promotion: Funding
of basic research by individual scientists and/or
groups of scientists and creation of centres of ex-
cellence for pursuing studies leading to fundamen-
tal understanding of matter that enables control
and manipulation at the nanoscale.
Infrastructure Development for Nano Science &
Technology Research: Investigations on the nano
scale require expensive equipments like Optical
Tweezer, Nano Indentor, Transmission Electron
Microscope (TEM), Atomic Force Microscope
(AFM), Scanning Tunneling Microscope (STM),
Matrix Assisted Laser Desorption Time of Flight
Mass Spectrometer (MALDI TOF MS), Microarray
Spotter & Scanner etc. For optimal use of expen-
sive and sophisticated facilities, it is proposed to
establish a chain of shared facilities across the
country.
Nano Applications and Technology Development
Programmes: To catalyze Applications and Tech-
nology Development Programmes leading to prod-
ucts and devices, the Mission proposes to promote
application-oriented R&D Projects, estabsish Nano
Applications and Technology Development Cen-
tres, Nano-Technology Business Incubators etc.
Special effort will be made to involve the indus-
trial sector into nanotechnology R&D directly or
through Public Private Partnership (PPP) ven-
tures.
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Human Resource Development: The Mission shall
focus on providing effective education and train-
ing to researchers and professionals in diversified
fields so that a genuine interdisciplinary culture
for nanoscale science, engineering and technol-
ogy can emerge. It is planned to launch M.Sc./
M.Tech. programmes, create national and over-
seas post-doctoral fellowships, chairs in universi-
ties, etc.
International Collaborations: Apart from explor-
atory visits of scientists, organization of joint work-
shops and conferences and joint research projects,
it is also planned to facilitate access to sophisti-
cated research facilities abroad, establish joint cen-
tres of excellence and forge academia-industry
partnerships at the international level wherever
required and desirable.
Nanotechnology
Nanotechnology is the engineering of tiny ma-
chines, the projected ability to build things from
the bottom up inside personal nanofactories (PNs),
using techniques and tools being developed today
to make complete, highly advanced products. Ul-
timately, nanotechnology will enable control of
matter at the nanometer scale, using mecha-
nochemistry. Shortly after this envisioned molecu-
lar machinery is created, it will result in a manu-
facturing revolution, probably causing severe dis-
ruption. It also has serious economic, social, envi-
ronmental, and military implications. A nanom-
eter is one billionth of a meter, roughly the width
of three or four atoms. The average human hair is
about 25,000 nanometers wide.
Integrated Guided Missile Development Program
The Integrated Guided Missile Development Pro-
gram (IGMDP) was an Indian Ministry of Defence
program for the development of a comprehensive
range of missiles, including the intermediate range
Agni missile (Surface to Surface), and short range
missiles such as the Prithvi ballistic missile (Sur-
face to Surface), Akash missile (Surface to Air),
Trishul missile (Surface to Air) and Nag Missile
(Anti Tank). The program was headed by Defense
Research and Development Organization (DRDO),
61
 Section -6 (IAS Mains Special : Science And Technology)
with former President of India, Dr. Abdul Kalam,
being one of the chief engineers involved in the
project.
The project was started in early 1980s and resulted
in the development of several key strategic mis-
siles. The last major missile developed under the
program was Agni 3 intermediate-range ballistic
missile which was successfully tested on 9 July
2007. On 8 January 2008, and the third test on 7
May 2008, the DRDO announced that it will be
closing the missile program formally since most
of the missiles in the program are developed and
inducted into Indian armed forces. According to
statement by Dr. S Pralhada, head controller of
DRDO, new missile and weapons systems will be
developed within a five-year time frame at low
costs, with foreign partners and private industries.
DRDO has independently carried out further de-
velopment work on Nag and Surya missile.
In 2008, India noted that the strategic integrated
guided missile program was completed with its
design objectives achieved. Follow on strategic
projects are being either pursued singly (e.g. Agni
project) whereas tactical systems could involve
joint ventures with even foreign partners.
In September 2008 Indian scientists developed a
path-breaking technology that has the potential
to increase the range of missiles and satellite
launch vehicles by at least 40%.The enhanced
range is made possible by adding a special-pur-
pose coating of chromium metal to the blunt nose
cone of missiles and launch vehicles. This would
add-up on the stated range.
India’s top missile scientist (Dr VK Saraswat), re-
vealed for the first time that the Integrated Guided
Missile Development Programme (IGMDP) was
likely to close down on 31 December 2008.
Development
In the twentieth century, the government of in-
dependent India embarked on a number of plans
to develop missiles which would strengthen India’s
defences. In 1958, the government constituted the
Copyright © 2009 | WWW.UPSCPORTAL.COM
Special Weapons Development Team which
would later become the Defence Research and
Development Laboratories (DRDL), to undertake
the development of first-generation anti-tank
missiles. In the 1970s, the Indian government de-
cided to manufacture anti-tank missiles under li-
cense from France. At the same time, DRDL was
entrusted with two other projects: Project Val-
iant, which involved the development of a long-
range ballistic missile; and Project devil, which
was aimed at reverse engineering the Soviet SA-2
surface-to-air missile. Both projects were termi-
nated prematurely; Project Valiant was terminated
in 1974 and Project Devil met the same fate in
1980.
However, by this time, DRDL had developed some
infrastructure and facilities to undertake the de-
sign and development of missiles. In 1983, under
the experience and leadership of Dr. Abdul Kalam,
who had previously been the project director for
the SLV-3 programme at ISRO, the Indian gov-
ernment revived the missile program as an Inte-
grated Guided Missile Development Program
(IGMDP). As part of this program, the Interim
Test Range at Balasore in Orissa was developed
for missile testing.
India on Tuesday 07, 2008 announced the scrap-
ping of the strategic integrated guided missile
programme, and said the development and pro-
duction of most of futuristic weapons systems
would henceforth be taken up with foreign help.
The main aim of the Integrated Guided Missile
Development Program was to develop, a missile
in five different categories simultaneously,
namely: a short-range surface-to-air missile
(codenamed Trishul), a medium-range surface-to-
air missile (codenamed Akash), a third-generation
anti-tank guided missile (codenamed Nag), a short-
range surface-to-surface missile (codenamed
Prithvi), and an intermediate-range surface-to-
surface missile (codenamed Agni).
There were a number of failures and successes,
which led to an expansion of the program in the
1990s, to develop the long range Agni missile, a
ballistic missile (codenamed Sagarika), which
62
 Section -6 (IAS Mains Special : Science And Technology)
would be the naval version of the Prithvi, and an
inter-continental-ballistic-missile (codenamed
Surya) with a range of 8,000-12,000 km.
In 1998, the Government of India, signed an agree-
ment with Russia to design, develop, manufacture
and market a Supersonic Cruise Missile System
which has been successfully accomplished by
2006. BrahMos is a supersonic cruise missile that
can be launched from submarines, ships, aircraft
or land. At speeds of Mach 2.5 to 2.8, it is the
world’s fastest cruise missile and is about three
and a half times faster than the American sub-
sonic Harpoon cruise missile. BAPL is contemplat-
ing a hypersonic Mach 8 version of the missile,
named as the BrahMos II. BrahMos II will be the
first hypersonic cruise missile and is expected to
be ready by 2012-13. The laboratory testing of the
missile has started.(codenamed BrahMos).
AWACS Aircraft
AWACS aircraft was inducted into Indian Air
Force on May 28,2009. Earlier the AWACS air-
craft landed at Jamnagar air base in Gujarat. The
aircraft will operate from the Agra air base under
the Central Air Command as part of the extended
fleet of the IL-76s family. India became the first
country in South Asia to own an AWACS, popu-
larly called ‘an eye in the sky’. The aircraft being
looked as a replacement for the IL-76 include
Embraer and Gulfstream 550, which can carry out
flying missions of over nine hours at a stretch.
Indian scientists clone first buffalo in the world
The buffalo clone named Samrupa is the first time
some animal has been cloned in India on Febru-
ary 14th 2009. ‘Samrupa’ is a Hindi word mean-
ing some one who is exactly same as some one
else. So, samrupa was exactly same as her mother
buffalo. This is a milestone for Indian science and
technology. Dr. S K Singla a scientist at the Na-
tional Dairy Research Institute, Karnal, Haryana
and his biotechnologist team had been working
on the cloning of the calf for the last four years.
This milestone came to Indian science 13 years
Copyright © 2009 | WWW.UPSCPORTAL.COM
after the first animal Dolly was cloned from her
mother sheep. Samrupa’s mother is a one year old
buffalo of the famous Murrah variety of Haryana
that gives 35 Kgs of milk per day.
Global Meeting on Water Crisis
Government ministers from 120 countries, scien-
tists and campaigners met in Istanbul from March
16, 2009 to discuss how to avert a global water
crisis and ease tensions between States fighting
over rivers, lakes and glaciers. The world’s popu-
lation of 6.6 billion is forecast to rise by 2.5 billion
by 2050. Most of the growth will be in develop-
ing countries, much of it in region where water is
already scarce. As populations and living standards
rise, a global water crisis looms unless countries
take urgent action, the international body said.
The agenda for the talks included how to avert
catastrophic floods and droughts as climate pat-
terns change, and how the global financial crisis
threatens to hit large scale water infra-structure
projects within the next several years.
International
Mobile Equipment Identity
International Mobile Equipment Identity (IMEI)
number is a unique 15-digit code that can iden-
tify a mobile to a GSM network. It prevents sto-
len handsets from being used to make calls and
allows lawful interception to prove that a particu-
lar device was used for making calls.
India’s First Biodegradable Bags
Biobin, India’s first biodegradable bags meant as
an alternative to non-bio-degrable plastic bags, a
main source of environment pollution, has been
introduced in Tamil Nadu. This is the first time in
India that bio-degradable bags with disinfectant
properties and fragrance have been launched.
These bags have special characteristics that help
them degrade faster. The Sunstar Trading Corpo-
ration, jointly with Exnora International, has de-
signed and launched the biobin bags.
63
 Section -6 (IAS Mains Special : Science And Technology)
The Indigenous Missile ‘Shaurya’
The indigenous missile ‘Shaurya’ was launched
from an underground facility with an in-built can-
ister from Complex-3 of the Integrated Test Range
at Chandipur, Balasore (Orissa) in 2008. The so-
phisticated tactical medium-range surface-to-sur-
face ballistic missile Shaurya is capable of carry-
ing conventional warheads with a payload of about
one tonne. It has 600-km range and is capable of
hitting targets deep inside Pakistan and China.
Y (4140)
Scientists has found evidence of an unexpected
particle whose curious characteristics may reveal
new ways that quark can combine to form mat-
ter. The new particle was temporarily designated
as Y (4140). It has a mass equivalent to 4140 mil-
lion electron volts (MeV) of energy – in the sense
of Einstein’s mass-energy relation – and the sym-
bol Y is indicative of its as yet unconfirmed and
ill-understood status. At present, it is not clear
what exactly Y (4140) is made of.
Primate Fossil Ida
A new 47-million year old primate fossil Ida, found
in Germany was unveiled to the world at the
American Museum of Natural History in New
York on May 19,2009. It may be a key link to ex-
plaining the evolution of early primates and, per-
haps, telling them about developments that led to
modern human beings. Dr. Jorn Hurum of the
University of Oslo, who led the two-year effort
to determine the fossil’s importance, nicknamed
it ‘Ida’ after his own six-year-old daughter. Ida,
the fossil of a young female that probably re-
sembled a modern-day lemur was described as the
most complete primate fossil ever found.
Tropical Cyclone Aila
Tropical cyclone Aila wreaked havoc in Kolkata,
its suburbs and across south Bengal. Aila also hit
Bangladesh’s southern coastlines with wind-
Copyright © 2009 | WWW.UPSCPORTAL.COM
driven tidal surged inundating residential areas and
breaching embankments. Many people died on
both sides.
Oldest Evidence of Leprosy
A team from Appalachian State University and
Deccan College Pune analyses 4000- year-old skel-
eton from India and found the evidence of lep-
rosy. The skeleton represents both the earliest
archaeological evidence for human infection with
Mycobacterium larvae in the world and the first
evidence for the disease in prehistoric India. The
study demonstrates that leprosy was present in
human populations in India by the end of the
mature phase of the Indus Civilisation (2000 BC)
and provides support for one hypothesis about
prehistoric transmission routes for disease.
Swine Flu
New cases of the deadly swine flu virus have been
confirmed in April 2009 as far afield as New
Zealand and Israel, as the UN warned it can not
be contained. The US, Canada, Spain and Britain
confirmed cases earlier but no deaths have been
reported outside Mexico, where the virus was first
reported. Mexico has raised the number of prob-
able deaths to 152, with 1,614 suspected sufferers
under observation. UN inspectors examined re-
ports pig farms may have spread the virus. The
UN’s health agency, the World Health Organiza-
tion (WHO), confirmed that the flu had been
transmitted between humans. Countries with sus-
pected cases: Brazil, Guatemala, Peru, Australia,
and South Korea, and seven EU states is being
transmitted from human to human.
What is Swine Flu
Swine flu is a respiratory disease, caused by influ-
enza type A, which infects pigs. There are many
types, and the infection is constantly changing.
Until now it has not normally infected humans,
but the latest form clearly does, and can be spread
from person to person - probably through cough-
ing and sneezing. The World Health Organiza-
tion has confirmed that at least some of the hu-
64
 Section -6 (IAS Mains Special : Science And Technology)
man cases are a never-before-seen version of the
H1N1 strain of influenza type A. H1N1 is the same
strain which causes seasonal outbreaks of flu in
humans on a regular basis. But this latest version
of H1N1 is different: it contains genetic material
that is typically found in strains of the virus that
affect humans, birds and swine. Flu viruses have
the ability to swap genetic components with each
other, and it seems likely that the new version of
H1N1 resulted from a mixing of different versions
of the virus, which may usually affect different
species, in the same animal host. Pigs provide an
excellent ‘melting pot’ for these viruses to mix and
match with each other.
Symptoms
Symptoms of swine flu in humans appear to be
similar to those produced by standard, seasonal
flu. These include fever, cough, sore throat, body
aches, chills and fatigue. Most cases so far reported
around the world appear to be mild, but in Mexico
lives have been lost. When any new strain of flu
emerges that acquires the ability to pass from per-
son to person, it is monitored very closely in case
it has the potential to spark a global epidemic, or
pandemic. The World Health Organization has
warned that taken together the Mexican and US
cases could potentially trigger a global pandemic,
and stress that the situation is serious. However it
is still too early to accurately assess the situation
fully.
Nobody knows the full potential impact of a pan-
demic, but experts have warned that it could cost
millions of lives worldwide. The Spanish flu pan-
demic, which began in 1918, and was also caused
by an H1N1 strain, killed millions of people. The
fact that all the cases in the US and elsewhere have
so far produced mild symptoms is encouraging. It
suggests that the severity of the Mexican outbreak
may be due to an unusual geographically-specific
factor - possibly a second unrelated virus circulat-
ing in the community - which would be unlikely
to come into play in the rest of the world.
Alternatively, people infected in Mexico may have
sought treatment at a much later stage than those
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in other countries. It may also be the case that the
form of the virus circulating in Mexico is subtly
different to that elsewhere - although that will
only be confirmed by laboratory analysis. There
is also hope that, as humans are often exposed to
forms of H1N1 through seasonal flu, our immune
systems may have something of a head start in
fighting infection. However, the fact that many
of the victims are young does point to something
unusual. Normal, seasonal flu tends to affect the
elderly disproportionately.
The virus appears already to have started to spread
around the world, and most experts believe that
containment of the virus in the era of readily avail-
able air travel will be extremely difficult.
According to World Health Organization that re-
stricting flights will have little effect. It argues
that screening of passengers is also unlikely to have
much impact, as symptoms may not be apparent
in many infected people.
Project Snow Leopard
India has launched Project Snow Leopard to con-
serve the endangered species (Uncia uncia) across
its habitat in the five Himalayan states in the coun-
try on Jan 20,2009 .The project is a manifestation
of the government of India’s resolve to conserve
biodiversity with community participation. Gov-
ernment has launched the project to give the
specie the same status of importance in the high
altitude as that of tiger in the terrestrial landscape.
The project will be undertaken in five Himalayan
states of Jammu and Kashmir, Himachal Pradesh,
Uttarakhand, Sikkim, and Arunachal Pradesh with
support from the Wildlife Institute of India (WII)
and the Mysore based Nature Conservation Foun-
dation (NCF).
Snow leopard is globally endangered specie and
an important flagship species of the mountain re-
gion. They are at the apex of ecological pyramid
and suffer the most on account of relatively smaller
population size and also due to man-animal con-
flict. This situation gets further aggravated due to
the hostile landscape forming its habitat. Snow
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 Section -6 (IAS Mains Special : Science And Technology)
leopard has been included in the list of species
under the Recovery Programme to be funded
through the umbrella scheme of integrated de-
velopment of wildlife habitats.
There are more than 26 protected areas in the
Himalayan landscape where specie is reported.
However, areas outside the protected areas are
equally important for long-range species like snow
leopard. India is endowed with the unique wild-
life assemblage of global importance in the Hima-
layan and trans-Himalayan zones. Thus, imple-
mentation of Project Snow Leopard will give an
opportunity for the conservation of this unique
biodiversity.
Securing of landscape for conservation, capacity
building of staff, research on wildlife and human
activities in snow leopard habitat, grazing and
management policies, and education awareness,
among others, would be vital for long-term con-
servation of the species. The Himalayan region is
home to at least 350 mammal species, 1,200 bird
species, besides a large number of amphibians and
reptiles, and numerous plants including with me-
dicinal properties.
Radio Collaring to Save Gharials
Fast vanishing crocodiles from Chambal wildlife
sanctuary have forced the Department of Science
and Technology to use science to monitor the en-
dangered species in the area spread over three
states of Uttar Pradesh, Madhya Pradesh and
Rajasthan. Close to 2,500 captively bred crocodiles
have been released into the Chambal since 1983
but less than 1,000 are estimated to be surviving
in the river. The department has asked the WII
and forest departments of the three states to use
radio collaring to monitor the crocodiles released
into the river from captive centers.
Radio Collaring
Radio collaring is a technology, which uses Glo-
bal Positioning Response System to record move-
ments of the animal on a daily basis after it is re-
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leased in the wild. The WII will soon be starting a
pilot project in this regard.
96th Indian Science Congress
The 96th Indian Science Congress concluded on
3-7 jan, 2009 with the scientific community mak-
ing specific recommendations for a tangible and
substantial action to be taken in future to
strengthen Science and Technology scenario and
Science Education in the country. In his address
at the concluding session at NEHU in Shillong,
the President of the ISC2009, Dr. T Ramasami
summed up the final recommendations as follows:
1. Science Education systems at various levels must
be reviewed and special schemes for attraction of
talent for excellence in research though the newly
launched INSPIRE must be strengthened though
the participation of the community.
2. HRD initiatives for space, agriculture, indus-
trial research must be further strengthened.
3. Further strengthening of ongoing Indian ini-
tiatives on mega science, astronomy and astrophys-
ics, women in science is supported.
4. New models for PPPs in science education as
well as research and development.
5. Teacher motivation and enabling systems in-
cluding in-service training, teaching tools from
local examples, project-based learning systems and
implementation of some recommendations of the
Inter-academy panel on new educational models.
6. Formation of scientific advisory councils to the
states in the NER for promotion of science and
technology in the region. ISCA recommends that
such councils may be formed by other states as
well.
7. A special package for relating science educa-
tion and promotion of research in the NER may
be developed and resources made available
through a special grant.
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 Section -6 (IAS Mains Special : Science And Technology)
8. Approaches for an evidence-based budgeting
and policy building.
9. Right sizing and expansion of R&D base in both
public and private sector.
10. Increased career opportunities in S&T sector
for the youth; and
11. Introduction of Performance Related Incen-
tive Systems for the S&T staff
Biotechnology
Biotechnology is technology based on biology,
agriculture, food science, and medicine. Modern
use of the term usually refers to genetic engineer-
ing as well as cell- and tissue culture technolo-
gies. However, the concept encompasses a wider
range and history of procedures for modifying liv-
ing things according to human purposes, going
back to domestication of animals, cultivation of
plants and "improvements" to these through
breeding programs that employ artificial selection
and hybridization. By comparison to biotechnol-
ogy, bioengineering is generally thought of as a
related field with its emphasis more on mechani-
cal and higher systems approaches to interfacing
with and exploiting living things.
Biotechnology draws on the pure biological sci-
ences (genetics, microbiology, animal cell culture,
molecular biology, biochemistry, embryology, cell
biology) and in many instances is also dependent
on knowledge and methods from outside the
sphere of biology (chemical engineering,
bioprocess engineering, information technology,
biorobotics). Conversely, modern biological sci-
ences (including even concepts such as molecular
ecology) are intimately entwined and dependent
on the methods developed through biotechnol-
ogy and what is commonly thought of as the life
sciences industry.
Biotechnology
Biotechnology has applications in four major in
Industrial areas, including health care (medical),
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crop production and agriculture, non food (indus-
trial) uses of crops and other products (e.g. biode-
gradable plastics, vegetable oil, biofuels), and en-
vironmental uses.
For example, one application of biotechnology is
the directed use of organisms for the manufac-
ture of organic products (examples include beer
and milk products). Another example is using
naturally present bacteria by the mining industry
in bioleaching. Biotechnology is also used to re-
cycle, treat waste, clean up sites contaminated by
industrial activities (bioremediation), and also to
produce biological weapons.
A series of derived terms have been coined to iden-
tify several branches of biotechnology, for ex-
ample:-Bioinformatics
» Bioinformatics is an interdisciplinary field which
addresses biological problems using computational
techniques, and makes the rapid organization and
analysis of biological data possible. The field may
also be referred to as computational biology, and
can be defined as, "conceptualizing biology in
terms of molecules and then applying informatics
techniques to understand and organize the infor-
mation associated with these molecules, on a large
scale."[6] Bioinformatics plays a key role in vari-
ous areas, such as functional genomics, structural
genomics, and proteomics, and forms a key com-
ponent in the biotechnology and pharmaceutical
sector.
» Blue biotechnology is a term that has been used
to describe the marine and aquatic applications of
biotechnology, but its use is relatively rare.
» Green biotechnology is biotechnology applied
to agricultural processes. An example would be
the selection and domestication of plants via
micropropagation. Another example is the design-
ing of transgenic plants to grow under specific
environmental in the presence (or absence) of
chemicals. One hope is that green biotechnology
might produce more environmentally friendly
solutions than traditional industrial agriculture.
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 Section -6 (IAS Mains Special : Science And Technology)
An example of this is the engineering of a plant to
express a pesticide, thereby ending the need of
external application of pesticides. An example of
this would be Bt corn. Whether or not green bio-
technology products such as this are ultimately
more environmentally friendly is a topic of con-
siderable debate.
» Red biotechnology is applied to medical pro-
cesses. Some examples are the designing of organ-
isms to produce antibiotics, and the engineering
of genetic cures through genomic manipulation.
» White biotechnology, also known as industrial
biotechnology, is biotechnology applied to indus-
trial processes. An example is the designing of an
organism to produce a useful chemical. Another
example is the using of enzymes as industrial cata-
lysts to either produce valuable chemicals or de-
stroy hazardous/polluting chemicals. White bio-
technology tends to consume less in resources than
traditional processes used to produce industrial
goods. The investments and economic output of
all of these types of applied biotechnologies form
what has been described as the bioeconomy.
Medicine
In medicine, modern biotechnology finds prom-
ising applications in such areas as:
» Drug production;
» Pharmacogenomics;
» Gene therapy; and
» Genetic testing;
Pharmacogenomics
Pharmacogenomics is the study of how the ge-
netic inheritance of an individual affects his/her
body’s response to drugs. It is a coined word de-
rived from the words "pharmacology" and
"genomics". It is hence the study of the relation-
ship between pharmaceuticals and genetics. The
vision of pharmacogenomics is to be able to de-
sign and produce drugs that are adapted to each
person’s genetic makeup.
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Pharmacogenomics results in the following ben-
efits:
Ø Development of tailor-made medicines. Using
pharmacogenomics, pharmaceutical companies
can create drugs based on the proteins, enzymes
and RNA molecules that are associated with spe-
cific genes and diseases. These tailor-made drugs
promise not only to maximize therapeutic effects
but also to decrease damage to nearby healthy
cells.
Ø More accurate methods of determining appro-
priate drug dosages. Knowing a patient’s genetics
will enable doctors to determine how well his/
her body can process and metabolize a medicine.
This will maximize the value of the medicine and
decrease the likelihood of overdose.
Ø Improvements in the drug discovery and ap-
proval process. The discovery of potential thera-
pies will be made easier using genome targets.
Genes have been associated with numerous dis-
eases and disorders. With modern biotechnology,
these genes can be used as targets for the devel-
opment of effective new therapies, which could
significantly shorten the drug discovery process.
Ø Better vaccines. Safer vaccines can be designed
and produced by organisms transformed by means
of genetic engineering. These vaccines will elicit
the immune response without the attendant risks
of infection. They will be inexpensive, stable, easy
to store, and capable of being engineered to carry
several strains of pathogen at once.
Pharmaceutical products
Most traditional pharmaceutical drugs are rela-
tively simple molecules that have been found pri-
marily through trial and error to treat the symp-
toms of a disease or illness. Biopharmaceuticals
are large biological molecules known as proteins
and these usually target the underlying mecha-
nisms and pathways of a malady (but not always,
as is the case with using insulin to treat type 1
diabetes mellitus, as that treatment merely ad-
dresses the symptoms of the disease, not the un-
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 Section -6 (IAS Mains Special : Science And Technology)
derlying cause which is autoimmunity); it is a rela-
tively young industry. They can deal with targets
in humans that may not be accessible with tradi-
tional medicines. A patient typically is dosed with
a small molecule via a tablet while a large mol-
ecule is typically injected.
Genetic testing
Genetic testing involves the direct examination
of the DNA molecule itself. A scientist scans a
patient’s DNA sample for mutated sequences.
There are two major types of gene tests. In the
first type, a researcher may design short pieces of
DNA ("probes") whose sequences are complemen-
tary to the mutated sequences. These probes will
seek their complement among the base pairs of an
individual’s genome. If the mutated sequence is
present in the patient’s genome, the probe will
bind to it and flag the mutation. In the second
type, a researcher may conduct the gene test by
comparing the sequence of DNA bases in a
patient’s gene to disease in healthy individuals or
their progeny.
Genetic testing is now used for:
» Carrier screening, or the identification of unaf-
fected individuals who carry one copy of a gene
for a disease that requires two copies for the dis-
ease to manifest;
» Confirmational diagnosis of symptomatic indi-
viduals;
» Determining sex;
» Forensic/identity testing;
» Newborn screening;
» Prenatal diagnostic screening;
» Presymptomatic testing for estimating the risk
of developing adult-onset cancers;
» Presymptomatic testing for predicting adult-on-
set disorders.
Gene therapy
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Gene therapy may be used for treating, or even
curing, genetic and acquired diseases like cancer
and AIDS by using normal genes to supplement
or replace defective genes or to bolster a normal
function such as immunity. It can be used to tar-
get somatic (i.e., body) or gametes (i.e., egg and
sperm) cells. In somatic gene therapy, the genome
of the recipient is changed, but this change is not
passed along to the next generation. In contrast,
in germline gene therapy, the egg and sperm cells
of the parents are changed for the purpose of pass-
ing on the changes to their offspring.
Human Genome Project
The Human Genome Project is an initiative of the
U.S. Department of Energy ("DOE") that aims to
generate a high-quality reference sequence for the
entire human genome and identify all the human
genes.
The DOE and its predecessor agencies were as-
signed by the U.S. Congress to develop new en-
ergy resources and technologies and to pursue a
deeper understanding of potential health and en-
vironmental risks posed by their production and
use. In 1986, the DOE announced its Human Ge-
nome Initiative. Shortly thereafter, the DOE and
National Institutes of Health developed a plan for
a joint Human Genome Project ("HGP"), which
officially began in 1990.
The HGP was originally planned to last 15 years.
However, rapid technological advances and world-
wide participation accelerated the completion date
to 2003 (making it a 13 year project). Already it
has enabled gene hunters to pinpoint genes asso-
ciated with more than 30 disorders.
Cloning
Cloning involves the removal of the nucleus from
one cell and its placement in an unfertilized egg
cell whose nucleus has either been deactivated or
removed.
There are two types of cloning:
1. Reproductive cloning. After a few divisions,
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the egg cell is placed into a uterus where it is al-
lowed to develop into a fetus that is genetically
identical to the donor of the original nucleus.
2. Therapeutic cloning. The egg is placed into a
Petri dish where it develops into embryonic stem
cells, which have shown potentials for treating
several ailments.
In February 1997, cloning became the focus of
media attention when Ian Wilmut and his col-
leagues at the Roslin Institute announced the suc-
cessful cloning of a sheep, named Dolly, from the
mammary glands of an adult female. The cloning
of Dolly made it apparent to many that the tech-
niques used to produce her could someday be used
to clone human beings. This stirred a lot of con-
troversy because of its ethical implications.
Agriculture
However biotechnology has little to do with pre-
venting starvation or malnutrition. The main pur-
pose of biotechnology is to increase profits for a
small group of companies by privatizing natural
resources. Starvation is not caused by inadequate
food supplies or crop varieties, but rather the eco-
nomic and power inequalities which biotechnol-
ogy reinforces.
Crop yield
Using the techniques of modern biotechnology,
one or two genes(Smartstax from Monsanto will
use 8, starting in 2010) may be transferred to a
highly developed crop variety to impart a new
character that would increase its yield. However,
while increases in crop yield are the most obvious
applications of modern biotechnology in agricul-
ture, it is also the most difficult one. Current ge-
netic engineering techniques work best for effects
that are controlled by a single gene. Many of the
genetic characteristics associated with yield (e.g.,
enhanced growth) are controlled by a large num-
ber of genes, each of which has a minimal effect
on the overall yield. There is, therefore, much
scientific work to be done in this area.
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Reduced vulnerability of crops to envi-
ronmental stresses
Crops containing genes that will enable them to
withstand biotic and abiotic stresses may be de-
veloped. For example, drought and excessively
salty soil are two important limiting factors in crop
productivity. Biotechnologists are studying plants
that can cope with these extreme conditions in
the hope of finding the genes that enable them to
do so and eventually transferring these genes to
the more desirable crops. One of the latest devel-
opments is the identification of a plant gene, At-
DBF2, from thale cress, a tiny weed that is often
used for plant research because it is very easy to
grow and its genetic code is well mapped out.
When this gene was inserted into tomato and to-
bacco cells (see RNA interference), the cells were
able to withstand environmental stresses like salt,
drought, cold and heat, far more than ordinary
cells. If these preliminary results prove successful
in larger trials, then At-DBF2 genes can help in
engineering crops that can better withstand harsh
environments. Researchers have also created
transgenic rice plants that are resistant to rice yel-
low mottle virus (RYMV). In Africa, this virus
destroys majority of the rice crops and makes the
surviving plants more susceptible to fungal infec-
tions.
Increased nutritional qualities &quan-
tity of food crops
Proteins in foods may be modified to increase their
nutritional qualities. Proteins in legumes and ce-
reals may be transformed to provide the amino
acids needed by human beings for a balanced diet.
A good example is the work of Professors Ingo
Potrykus and Peter Beyer on the so-called Golden
rice.
Improved taste, texture or appearance
of food
Modern biotechnology can be used to slow down
the process of spoilage so that fruit can ripen longer
on the plant and then be transported to the con-
sumer with a still reasonable shelf life. This alters
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the taste, texture and appearance of the fruit. More
importantly, it could expand the market for farm-
ers in developing countries due to the reduction
in spoilage. However, there is sometimes a lack of
understanding by researchers in developed coun-
tries about the actual needs of prospective benefi-
ciaries in developing countries. For example, en-
gineering soybeans to resist spoilage makes them
less suitable for producing tempe which is a sig-
nificant source of protein that depends on fermen-
tation. The use of modified soybeans results in a
lumpy texture that is less palatable and less con-
venient when cooking.
The first genetically modified food product was a
tomato which was transformed to delay its ripen-
ing. Researchers in Indonesia, Malaysia, Thailand,
Philippines and Vietnam are currently working
on delayed-ripening papaya in collaboration with
the University of Nottingham and Zeneca.
Biotechnology in cheese production: enzymes pro-
duced by micro-organisms provide an alternative
to animal rennet – a cheese coagulant – and an
alternative supply for cheese makers. This also
eliminates possible public concerns with animal-
derived material, although there are currently no
plans to develop synthetic milk, thus making this
argument less compelling. Enzymes offer an ani-
mal-friendly alternative to animal rennet. While
providing comparable quality, they are theoreti-
cally also less expensive.
About 85 million tons of wheat flour is used ev-
ery year to bake bread. By adding an enzyme called
maltogenic amylase to the flour, bread stays
fresher longer. Assuming that 10–15% of bread is
thrown away as stale, if it could be made to stay
fresh another 5–7 days then perhaps 2 million tons
of flour per year would be saved. Other enzymes
can cause bread to expand to make a lighter loaf,
or alter the loaf in a range of ways.
Reduced dependence on fertilizers,
pesticides and other agrochemicals
Most of the current commercial applications of
modern biotechnology in agriculture are on re-
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ducing the dependence of farmers on agrochemi-
cals. For example, Bacillus thuringiensis (Bt) is a
soil bacterium that produces a protein with in-
secticidal qualities. Traditionally, a fermentation
process has been used to produce an insecticidal
spray from these bacteria. In this form, the Bt toxin
occurs as an inactive protoxin, which requires di-
gestion by an insect to be effective. There are sev-
eral Bt toxins and each one is specific to certain
target insects. Crop plants have now been engi-
neered to contain and express the genes for Bt
toxin, which they produce in its active form.
When a susceptible insect ingests the transgenic
crop cultivar expressing the Bt protein, it stops
feeding and soon thereafter dies as a result of the
Bt toxin binding to its gut wall. Bt corn is now
commercially available in a number of countries
to control corn borer (a lepidopteran insect), which
is otherwise controlled by spraying (a more diffi-
cult process).
Crops have also been genetically engineered to
acquire tolerance to broad-spectrum herbicide.
The lack of cost-effective herbicides with broad-
spectrum activity and no crop injury was a con-
sistent limitation in crop weed management.
Multiple applications of numerous herbicides were
routinely used to control a wide range of weed
species detrimental to agronomic crops. Weed
management tended to rely on preemergence that
is, herbicide applications were sprayed in response
to expected weed infestations rather than in re-
sponse to actual weeds present. Mechanical culti-
vation and hand weeding were often necessary to
control weeds not controlled by herbicide appli-
cations. The introduction of herbicide-tolerant
crops has the potential of reducing the number of
herbicide active ingredients used for weed man-
agement, reducing the number of herbicide ap-
plications made during a season, and increasing
yield due to improved weed management and less
crop injury. Transgenic crops that express toler-
ance to glyphosate, glufosinate and bromoxynil
have been developed. These herbicides can now
be sprayed on transgenic crops without inflicting
damage on the crops while killing nearby weeds.
From 1996 to 2001, herbicide tolerance was the
most dominant trait introduced to commercially
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available transgenic crops, followed by insect re-
sistance. In 2001, herbicide tolerance deployed in
soybean, corn and cotton accounted for 77% of
the 626,000 square kilometres planted to
transgenic crops; Bt crops accounted for 15%; and
"stacked genes" for herbicide tolerance and insect
resistance used in both cotton and corn accounted
for 8%.
Production of novel substances in crop
plants
Biotechnology is being applied for novel uses other
than food. For example, oilseed can be modified
to produce fatty acids for detergents, substitute
fuels and petrochemicals. Potatoes, tomatoes,
ricererere tobacco, lettuce, safflowers, and other
plants have been genetically-engineered to pro-
duce insulin and certain vaccines. If future clini-
cal trials prove successful, the advantages of ed-
ible vaccines would be enormous, especially for
developing countries. The transgenic plants may
be grown locally and cheaply. Homegrown vac-
cines would also avoid logistical and economic
problems posed by having to transport traditional
preparations over long distances and keeping them
cold while in transit. And since they are edible,
they will not need syringes, which are not only
an additional expense in the traditional vaccine
preparations but also a source of infections if con-
taminated. In the case of insulin grown in
transgenic plants, it is well-established that the
gastrointestinal system breaks the protein down
therefore this could not currently be administered
as an edible protein. However, it might be pro-
duced at significantly lower cost than insulin pro-
duced in costly, bioreactors. For example, Calgary,
Canada-based SemBioSys Genetics, Inc. reports
that its safflower-produced insulin will reduce unit
costs by over 25% or more and approximates a
reduction in the capital costs associated with build-
ing a commercial-scale insulin manufacturing fa-
cility of over $100 million, compared to traditional
biomanufacturing facilities.
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Criticism
There is another side to the agricultural biotech-
nology issue. It includes increased herbicide us-
age and resultant herbicide resistance, "super
weeds," residues on and in food crops, genetic con-
tamination of non-GM crops which hurt organic
and conventional farmers, damage to wildlife from
glyphosate, etc.
Biological engineering
Biotechnological engineering or biological engi-
neering is a branch of engineering that focuses on
biotechnologies and biological science. It includes
different disciplines such as biochemical engineer-
ing, biomedical engineering, bio-process engineer-
ing, biosystem engineering and so on. Because of
the novelty of the field, the definition of a
bioengineer is still undefined. However, in gen-
eral it is an integrated approach of fundamental
biological sciences and traditional engineering
principles.
Bioengineers are often employed to scale up bio
processes from the laboratory scale to the manu-
facturing scale. Moreover, as with most engineers,
they often deal with management, economic and
legal issues. Since patents and regulation (e.g., U.S.
Food and Drug Administration regulation in the
U.S.) are very important issues for biotech enter-
prises, bioengineers are often required to have
knowledge related to these issues.
The increasing number of biotech enterprises is
likely to create a need for bioengineers in the years
to come. Many universities throughout the world
are now providing programs in bioengineering and
biotechnology (as independent programs or spe-
cialty programs within more established engineer-
ing fields).
Bioremediation and Biodegradation
Biotechnology is being used to engineer and adapt
organisms especially microorganisms in an effort
to find sustainable ways to clean up contaminated
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 Section -6 (IAS Mains Special : Science And Technology)
environments. The elimination of a wide range of
pollutants and wastes from the environment is an
absolute requirement to promote a sustainable
development of our society with low environmen-
tal impact. Biological processes play a major role
in the removal of contaminants and biotechnol-
ogy is taking advantage of the astonishing cata-
bolic versatility of microorganisms to degrade/con-
vert such compounds. New methodological break-
throughs in sequencing, genomics, proteomics,
bioinformatics and imaging are producing vast
amounts of information. In the field of Environ-
mental Microbiology, genome-based global stud-
ies open a new era providing unprecedented in
silico views of metabolic and regulatory networks,
as well as clues to the evolution of degradation
pathways and to the molecular adaptation strate-
gies to changing environmental conditions. Func-
tional genomic and metagenomic approaches are
increasing our understanding of the relative im-
portance of different pathways and regulatory
networks to carbon flux in particular environ-
ments and for particular compounds and they will
certainly accelerate the development of
bioremediation technologies and biotransforma-
tion processes.
Marine environments are especially vulnerable
since oil spills of coastal regions and the open sea
are poorly containable and mitigation is difficult.
In addition to pollution through human activities,
millions of tons of petroleum enter the marine
environment every year from natural seepages.
Despite its toxicity, a considerable fraction of pe-
troleum oil entering marine systems is eliminated
by the hydrocarbon-degrading activities of micro-
bial communities, in particular by a remarkable
recently discovered group of specialists, the so-
called hydrocarbonoclastic bacteria (HCCB).
Arihant Class Submarine
The Arihant class submarines are nuclear-pow-
ered ballistic missile submarines of the Indian
navy. The lead vessel of the class, INS Arihant,
was launched on July 26, 2009. The Arihant Class
of submarines may carry the Sagarika submarine-
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launched ballisitic missile (SLBM) or the BrahMos
supersonic cruise missile.
The Arihant class vessels were designed as a part
of the Advanced Technology Vessel project, India’s
US$2.9 billion project to design and build nuclear-
powered submarines. The Arihant class is India’s
first indigenously designed and built submarine.
3 submarines of the class are expected to be in
commission with the Indian navy by 2015.
Development
The Arihant class submarines were designed and
constructed as a part of the Indian navy’s Ad-
vanced Technology Vessel (ATV) project. The
ATV project started with the intent to design
nuclear-powered fast attack submarines, though
over time the project was re-aligned towards the
design of a ballistic missile submarine in order to
complete India’s nuclear triad.
The vessels are powered by an 80 MW pressur-
ized water reactor (PWR) with enriched uranium
fuel. The initial design of the miniaturized naval-
version of the reactor developed by the Bhabha
atomic research centre (BARC) had technical chal-
lenges, after which Russian help was sought to
resolve the design glitches. The final production
version of the reactor was built at the Indira
Gandhi center for atomic research (IGCAR) at
Kalpakkam.
The hulls for this class are built by L&T’s Hazira
shipbuilding facility. Tata power built the control
systems for the submarine. The systems for the
steam turbine integrated with the PWR were sup-
plied by Walchandnagar Industries. Reports have
suggested that the hulls for two more vessels were
completed at the L&T facility at Hazira and will
be transported to Visakhapatnam as INS Arihant
has been moved from the dry dock.
Description
A nuclear-powered submarine is a much more
complex platform than any other vessel and India
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 Section -6 (IAS Mains Special : Science And Technology)
building one on its own is a great achievement.
What enhances the scale of the achievement is
that INS Arihant, India’s nuclear-powered sub-
marine, will be fitted with India’s own K-15 bal-
listic missiles that can be launched from under
water. The K-15 missiles, which are already un-
der production, can carry both conventional and
nuclear warheads. They have a range of 700 km.
They are 10.4 metres tall and weigh 6.3 tonnes
each.
It means India can launch missiles with nuclear
warheads from ground, drop nuclear bombs from
air and also fire them now from under water.A
nuclear-powered submarine bestowed on India
the status of a nation possessing a blue-water navy
because the boat can travel far and wide.
In a nuclear-energy system used in a submarine,
there is no emission of carbon-dioxide. It is a clean
form of energy. The turbine operating on enriched
uranium in INS Arihant is a clean system. But a
diesel-generator emits carbon-dioxide. It is can not
discharge it into the water. So the submarine has
to be brought up to the surface every day to eject
the carbon-dioxide into the atmosphere.
India now joined a select group of five countries,
which possess the capability to build a nuclear-
powered submarine. That the construction of a
submarine was a highly demanding task in itself
was known, but for a country to develop its first
nuclear submarine was a special achievement.
The formal launch for sea trials of the platform
called a cryptic ‘S2’ lifted the secrecy around the
Advanced Technology Vessel Project cleared for
implementation by Indira Gandhi in 1984 and
whose first step in steel cutting commenced in
1998. To date the project is estimated to have cost
Rs. 30,000 crore.
India’s Per Capita GHG Emissions
India’s per capita emission of Greenhouse Gases
(GHG) will continue to be low until the year 2030-
31. In fact, it is estimated that India’s per capita
emissions in the year 2031 will be lower than the
Copyright © 2009 | WWW.UPSCPORTAL.COM
per capita global emission of GHG in the year 2005.
These significant findings were contained in a
Report "India’s GHG Emissions Profile: Results of
Five Climate Modelling Studies" released on Sep-
tember 02, 2009 by the Deputy Chairman of the
Planning Commission Shri Montek Singh
Ahluwalia. The Minister of Environment & For-
ests Shri Jairam Ramesh presided over the func-
tion. The Chairman of Unique Identity Author-
ity of India, Shri Nandan Nilekani was also present
on the occasion.
What Said Report
As per the estimates of the five different studies,
India’s per capita GHG emissions in 2030-31 would
be between 2.77 tonnes and 5.00 tonnes of CO2e
(Carbon Dioxide equivalent). Four of the five stud-
ies estimated that even in 2031, India’s per capita
GHG emissions would stay under 4 tonnes of CO2e
which is lower than the global per capita emis-
sions of 4.22 tonnes of CO2e in 2005. This would
mean that even two decades from now, India’s
per capita GHG emissions would be well below
the global average of 25 years earlier.
In absolute terms, estimates of India’s GHG emis-
sions in 2031 vary from 4.0 billion tones to 7.3
billion tones of CO2e, with four of the five stud-
ies estimating that even two decades from now,
India’s GHG emissions will remain under 6 bil-
lion tones. The key drivers of the range of these
estimates are the assumptions on GDP growth
rates, penetration of clean energy, energy effi-
ciency improvements etc.
All the five studies show evidence of a substantial
and continuous improvement in India’s energy
efficiency of GDP. India’s energy use efficiency
has been steadily improving over the years which
is reflected in the decline of its energy intensity
of GDP from 0.30 kgoe (kilogram of oil equiva-
lent) per $ of GDP in 1980 to 0.16 kgoe per $ GDP
in PPP (purchasing power parity) terms. This is
comparable to Germany and only Japan, UK, Bra-
zil and Denmark have lower energy intensities in
the world. An Enhanced Energy Efficiency Mis-
sion has recently been approved in principle un-
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 Section -6 (IAS Mains Special : Science And Technology)
der the National Action Plan on Climate Change.
Of the five studies on GHG emissions profile in
India, three were conducted by the National
Council of Applied Economic Research (NCAER)-
Jadavpur University, The Energy Research Insti-
tute (TERI) and the Integrated Research and Ac-
tion for Development (IRADe) with the support
of the Ministry of Environment & Forests. Two
other studies by TERI and Mckinsey and Com-
pany were conducted with support from other
agencies. What is Greenhouse Gases
Greenhouse gases naturally blanket the Earth and
keep it about 33 degrees Celsius warmer than it
would be without these gases in the atmosphere.
This is called the Greenhouse Effect. Over the past
century, the Earth has increased in temperature
by about .5 degrees Celsius and many scientists
believe this is because of an increase in concen-
tration of the main greenhouse gases: carbon di-
oxide, methane, nitrous oxide, and fluorocarbons.
However, some scientists argue that the global
warming we are experiencing now is a natural
phenomenon, and is part of Earth’s natural cycle.
Presently, nobody can prove if either theory is
correct, but one thing is certain; the world has
been emitting greenhouse gases at extremely high
rates and has shown only small signs of reducing
emissions until the last few years. After the 1997
Kyoto Protocol, the world has finally taken the
first step in reducing emissions.
Greenhouse Effect
The greenhouse effect is the heating of the Earth
due to the presence of greenhouse gases. It is
named this way because of a similar effect pro-
duced by the glass panes of a greenhouse. Shorter-
wavelength solar radiation from the sun passes
through Earth’s atmosphere, then is absorbed by
the surface of the Earth, causing it to warm. Part
of the absorbed energy is then reradiated back to
the atmosphere as long wave infrared radiation.
Little of this long wave radiation escapes back into
space; the radiation cannot pass through the green-
house gases in the atmosphere. The greenhouse
gases selectively transmit the infrared waves, trap-
ping some and allowing some to pass through into
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space. The greenhouse gases absorb these waves
and reemit the waves downward, causing the
lower atmosphere to warm.
Government’s Stance
India is a signatory to the Kyoto Protocol and falls
under the non-Annexe I countries, or developing
countries group. This implies that India does not
have any binding commitments to reduce the level
of its carbon emissions. Recognizing that devel-
oped countries are principally responsible for the
current high levels of GHG emissions in the at-
mosphere as a result of more than 150 years of
industrial activity, the Protocol places a heavier
burden on developed nations under the principle
of "common but differentiated responsibilities."
This said India is currently one of fastest growing
emitters of green house gasses (GHG) with a 65%
increase in emissions between 1990-2005 and pro-
jected increase of another 70% by 2020. Added to
that India is presently the fifth largest GHG emit-
ter (absolute terms) and contributes 5% of global
emissions.
The Government of India has committed itself to
vastly improving the country’s human develop-
ment indices by 2031-2032. In order to do so, the
country must average economic growth of at least
8 percent per annum for the next twenty-five
years. According to a report released by the Plan-
ning Commission of India, if India is to sustain an
8 percent level of growth, then it will need to in-
crease its primary energy supply by at least 3 or 4
times and its electricity supply by a factor of 5 to
7 by 2031-2032. Likewise, power generation ca-
pacity will have to increase from 120,000 MW to
780,000 MW.
The energy sector is already the biggest contribu-
tor to GHG emissions in India and the above de-
mands, while being a legitimate and necessary to
improve the quality of life of vast sectors of the
Indian public and ensure economic and social de-
velopment, will lead to an inevitable increase in
GHG emissions in coming years. This is especially
as the majority of the energy needs will be met
through fossil fuel based sources and coal in par-
ticular.
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 Section -6 (IAS Mains Special : Science And Technology)
Given this rapid growth in emission rates and the
magnitude of likely future emissions The United
States of America and other countries from the
West are pressurizing rapidly developing coun-
tries like India and China to accept binding emis-
sion reduction targets. They claim that these coun-
tries will soon overtake the developed world in
carbon emissions and hence should also shoulder
the burden of reducing these emissions. They want
India and China to take on such commitments in
the post-Kyoto regime.
The arguments India uses to support this position
are centered around the principles of common but
differentiated responsibilities (as is with the
UNFCCC) and equity. These arguments can be
categorized under three broad heads as Historical
Responsibility, Per-capita emissions, Technology
transfer
Government Policies
This does not mean that the Indian Government
is not doing anything about climate change. India
is a signatory to both the UNFCCC and the Kyoto
protocol and takes active part in multi-lateral ne-
gotiations on climate change. An example is India’s
membership of the Asia-Pacific Partnership for
Clean Development and Climate 2005. Under this
partnership Foreign, Environment and Energy
Ministers from partner countries agreed to co-
operate on development and transfer of technol-
ogy, which enables reduction of greenhouse gas
emissions. Ministers agreed to a Charter,
Communiqué and Work Plan that outline a "pri-
vate-public taskforces to address climate change,
energy security and air pollution." In addition,
India has submitted its first National Communi-
cation on Climate Change (NATCOM I) and is
currently working on NATCOM II.
Some key policies are: Remote Village Electrifi-
cation Programme (RVE) 2001: Electrify all the
remote villages and remote hamlets through non-
conventional energy sources such as solar energy,
small hydro-power, biomass, wind energy, hybrid
systems, etc. The Programme aims at bringing the
benefits of electricity to people living in the most
Copyright © 2009 | WWW.UPSCPORTAL.COM
backward and deprived regions of the country.
Energy Conservation Act 2001: The Indian Par-
liament passed The Energy Conservation Act 2001,
in September 2001. This Act requires large en-
ergy consumers to adhere to energy consumption
norms; new buildings to follow the Energy Con-
servation Building Code; and appliances to meet
energy performance standards and to display en-
ergy consumption labels. The Act also created the
Bureau of Energy Efficiency to implement the
provisions of the Act.
Integrated Energy Policy 2006: Released in Au-
gust 2006 it addresses all aspects of energy, in-
cluding energy security, access and availability,
affordability and pricing, efficiency and the envi-
ronment.
In relation to renewable energy, the policy pro-
posed:
» The phase-out of capital subsidies by the end of
the 10th Plan linked to creation of renewable grid
power capacity;
» Requiring power regulators to seek alternative
incentive structures that encourage utilities to
integrate wind, small hydro, cogeneration and so
on into their systems, and the linking of all such
incentives to energy generated as opposed to ca-
pacity created;
» Requiring power regulators to mandate feed-in
laws for renewable energy, where appropriate, as
provided under the Electricity Act 2003.
Labelling Programme for Appliances 2006: A star
rating based labeling programme has been intro-
duced for four commonly used consumer goods
that indicate their energy efficiency. The goods
covered as of now are; fluorescent tube-lights, air
conditioners, refrigerators, distribution transform-
ers.
Energy Conservation Building Code (ECBC)
2007: The ECBC was developed in 2006 and is-
sued May 2007. It is not mandatory the first three
years, and will become so in 2010, to allow the
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 Section -6 (IAS Mains Special : Science And Technology)
necessary implementation capacity to be devel-
oped. The code will be mandatory for all new
buildings (commercial buildings or complexes)
with a connected load of 500kW or more, or a
contract demand of 600 kVA or greater. It will
also apply to buildings with a conditioned floor
space of 1 000m2 or greater.
Solar Power Generation Based Incentive 2008:
In January 2008, the federal minister responsible
for renewable energy announced that the Indian
government would provide a subsidy for solar
power plants to help develop renewable energy
infrastructure. The incentives, for a period of 10
years, will be over and above any financial assis-
tance provided by the states.
Generation based incentives for wind power
2008: In July 2008, the Ministry of New and Re-
newable Energy (MNRE) launched a new genera-
tion-based incentive scheme for wind power pro-
duction. The scheme is designed to promote in-
vestment in new and large independent wind
power producers, to fulfil a target of securing 10
500 MW of new wind power capacity by 2012.
Energy Conservation Awards: The Ministry of
Power instituted National Energy Conservation
Awards, coordinated by the Bureau of Energy Ef-
ficiency, to recognize industrial units that have
made special efforts to reduce energy consump-
tion. In the first five years, the participating in-
dustrial units collectively saved 2397 million units
of electrical energy; 9067 kilo litre of furnace oil;
2.76 Mt of coal and 11,585 million cubic metre of
gas per year, resulting in substantial reduction in
greenhouse gas emissions.
National Action Plan on Climate Change: On
30 June 2008, India released its first National Ac-
tion Plan on Climate Change (NAPCC) outlining
existing and future policies and programmes di-
rected at climate change mitigation and adapta-
tion. The plan outlines eight "national missions"
running up to 2017, and ministries are directed to
submit detailed implementation plans to the Prime
Minister’s Council on Climate Change by Decem-
ber 2008. Several target energy use, promoting
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energy efficiency and renewable energy, as well
as improved research capacity on climate change
issues. Other missions target water efficiency, ag-
riculture, forestation, and ecosystem conservation.
World’s First Market for Trading Credits for En-
ergy Savings
India has planned to create the world’s first mar-
ket for trading credits for energy savings. Gov-
ernment expects to set mandatory energy-savings
targets by the end of 2009 for energy-intensive
sectors such as cement, aluminum, steel, power,
textiles, fertilizers, railway, paper and pulp. The
country’s Bureau of Energy Efficiency is working
on a program to establish credits for industrial
plants that save energy beyond the government
requirement. The plan has been modeled after
emissions-trading markets at work in the EU.
Futures trading in carbon credits
In January 2009, Mumbai, India-based Multi Com-
modity Exchange (MCX) launched futures trad-
ing in carbon credits in India. Under the energy-
savings plan, separate targets would be established
for each large industrial unit and plant in order to
take into account the different sizes and type of
companies in each sector. The mandatory reduc-
tions would then go into effect three years later.
Companies surpassing energy savings require-
ments would get credits that can be sold through
existing power exchanges to companies that fail
to meet their targets. Companies failing to meet
targets that do not buy credits would then be pe-
nalized by the government. The energy-savings
market must be approved by the prime minister’s
climate council.
The move is part of India’s National Action Plan
on Climate Change. Because the country has lower
emissions than industrialized countries, India has
decided one of its best contributions could be to
use less energy from polluting sources. India has
generated about 30 million carbon credits and is
one of the largest beneficiaries in the carbon credit
trade, according to MCX. Under the plan, private
companies would be responsible for measuring
energy reductions.
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 Section -6 (IAS Mains Special : Science And Technology)
Carbon Trading Scenario
Parties with commitments under the Kyoto Pro-
tocol (Annex B Parties) have accepted targets for
limiting or reducing emissions. These targets are
expressed as levels of allowed emissions, or "as-
signed amounts," over the 2008-2012 commitment
period. The allowed emissions are divided into
"assigned amount units" (AAUs). Emissions trad-
ing, as set out in Article 17 of the Kyoto Protocol,
allow countries that have emission units to spare
- emissions permitted them but not "used" - to
sell this excess capacity to countries that are over
their targets. Thus, a new commodity was cre-
ated in the form of emission reductions or remov-
als. Since carbon dioxide is the principal green-
house gas, people speak simply of trading in car-
bon. Carbon is now tracked and traded like any
other commodity. This is known as the "carbon
market."
Emissions Trading and CDM
An emission trading is a way of introducing flex-
ibility into a system where participants have to
meet emissions targets. These participants may be
countries (as in the case of the Kyoto Protocol),
or companies (as in the case of a domestic emis-
sions trading scheme). Participants can buy units
to cover any emissions above their targets, or sell
units if they reduce their emissions below their
targets. The presence of a market for these units
creates a value for emissions reductions, which
stimulates investment in the most cost-effective
areas. Emissions trading leads to a reduction in
compliance costs compared to meeting the same
target through domestic/internal means only.
The Clean Development Mechanism (CDM) of the
Kyoto Protocol allows projects in developing coun-
tries to generate emission credits if they result in
emission levels lower than would otherwise be
the case; these credits can be marketed and even-
tually counted against a developed country’s emis-
sion obligation. The IEA provides analysis on the
effectiveness of the different emissions trading
scheme options, both at international and domes-
tic level.
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RISAT-2 and ANUSAT Successfully
Placed in Orbit
In its fifteenth mission carried out from Satish
Dhawan Space Centre SHAR (SDSC SHAR),
Sriharikota on April 20, 2009 ISRO’s Polar Satel-
lite Launch Vehicle (PSLV-C12) successfully
placed two satellites - RISAT-2 and ANUSAT in
the desired orbit.
RISAT-2 is a Radar Imaging Satellite with the ca-
pability to take images of the earth during day
and night as well as cloudy conditions. At the time
of launch, RISAT-2 weighed about 300 kg and was
realised by ISRO in association with Israel Aero-
space Industries. The satellite was placed in an
orbit of 550 km height with an inclination of 41
deg to the equator and an orbital period of about
90 minutes. This satellite will enhance ISRO’s ca-
pability for earth observation, especially during
floods, cyclones, landslides and in disaster man-
agement in a more effective way.
First Experimental Communication
Satellite Built by an Indian University
The 44 metre tall PSLV-C12 weighing 230 ton
was launched from the Second Launch Pad (SLP)
at SDSC SHAR in the Core Alone configuration
without the use of six solid strap-ons. In this mis-
sion, in addition to RISAT-2, PSLV also carried A
40 kg micro satellite named ANUSAT, built by
Anna University, Chennai. ANUSAT is the first
experimental communication satellite built by an
Indian University under the over all guidance of
ISRO and will demonstrate the technologies re-
lated to message store and forward operations. In
this flight, PSLV carried the indigenously devel-
oped Advanced Mission Computers and Advanced
Telemetry System, which guided the vehicle from
lift-off till the injection of the two satellites in
the desired orbit.
The main payload, RISAT-2, was the first satel-
lite to be separated in orbit at 1100 seconds after
lift-off at an altitude of 550 km. With this suc-
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 Section -6 (IAS Mains Special : Science And Technology)
cessful launch, the versatility and the reliability
of PSLV has been proved again underscoring its
importance as the workhorse launch vehicle of
India. This launch was the fourteenth consecu-
tive success for PSLV. In these launches, PSLV
has placed a total of sixteen Indian satellites and
sixteen foreign satellites into Polar, Geosynchro-
nous Transfer and Low Earth Orbits. It may be
recalled that during its previous mission on Octo-
ber 22, 2008, PSLV had successfully launched
Chandrayaan-1 spacecraft, which is now explor-
ing the moon from lunar orbit.
Features of PSLV, RISAT-2 and
ANUSAT
PSLV is a four-stage launch
vehicle employing both solid
and liquid propulsion stages.
PSLV is the trusted work-
horse launch Vehicle of
ISRO. During 1993-2008 pe-
riod, PSLV had fourteen
launches of which thirteen
were consecutively success-
ful. PSLV has repeatedly
proved its reliability and ver-
satility by launching 32 spacecrafts (16Indian and
16 for international customers) into a variety of
orbits so far. It may be recalled that during its pre-
vious mission on October 22, 2008, PSLV had suc-
cessfully launched Chandrayaan-1 spacecraft,
which is now exploring the Moon from lunar or-
bit.
In its standard configuration, the 44 m tall PSLV
has a lift-off mass of 295 tonne. It is a four-stage
launch vehicle with the first and the third stages
as well as the six strap-ons surrounding the first
stage using HTPB based solid propellant. PSLV’s
first stage is one of the largest solid propellant
boosters in the world. Its second and fourth stages
use liquid propellants. PSLV-C12 was launched
without the six strapons in its ‘core alone’ con-
figuration. PSLV-C12 weighs about 230 tonnes at
lift off. It may be recalled that PSLV in its core
alone configuration had launched AGILE and
TECSAR during 2007 and 2008 respectively.
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RISAT-2 is a Radar Imaging Satellite with all
weather capability to take images of the earth. This
Satellite will enhance ISRO’s capability for Disas-
ter Management applications, ANUSAT (Anna
University Satellite) is the first satellite built by
an Indian University under the over all guidance
of ISRO and will demonstrate the technologies
related to message store and forward operations
ASTROSAT
India’s Astronomy satellite, ASTROSAT, which
would facilitates study of a range of astrophysical
objects, is likely to be launched in mid-2010.The
scientists have completed the developmental phase
of complex science payloads and have just begun
integrating them before delivery for the 1650 kg
satellite.
Salient Features
The challenges in the design of payloads and At-
titude Control System have been overcome and
in a recent review committee meeting, it was de-
cided that the delivery of the payload to ISRO
satellite Centre will begin from the middle of this
year and continue till early next year to enable
the launch ASTROSAT in 2010 using ISRO work-
horse PSLV.
The ASTROSAT will be in an equatorial orbit with
inclination of about eight degrees or less. Two star
trackers and gyros will be used for the pointing
control of the satellite. Orbiting at 600 km above
the earth’s surface, the ASTROSAT satellite cost-
ing about Rs 200 crore, will have a lifespan of at
least five years.
This would facilitate study of astrophysical objects
ranging from nearby solar system objects to dis-
tant stars and objects at cosmological distances.
ASTROSAT project is a collaborative effort of a
number of research institutions, including the
Mumbai-based TIFR. Out of the five science pay-
loads for this multi-wavelength satellite observa-
tory, three X-ray instruments are developed by
TIFR.
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 Section -6 (IAS Mains Special : Science And Technology)
The Ultra-Violet Imaging Instrument has been
developed jointly by Indian Institute of Astrophys-
ics, Bangalore and Inter-university canter for as-
tronomy and astrophysics, Pune with the involve-
ment of TIFR. The photon counting detectors of
this instrument have been developed jointly by
the Indian team and the Canadian Space Agency
as a science collaboration. The fifth instrument
namely X-ray Sky monitor is being made by ISRO
Satellite Center and is in advanced stages of fabri-
cation and assembly.
The X-ray CCD used in X-ray imaging telescope
is not readily available and very expensive to pro-
cure. Hence, instead of buying the costly X-ray
CCD for ‘ASTROSAT’, the Indian side has opted
for a scientific collaboration with the British Uni-
versity of Leicester.
Interceptor Missile
India has successfully conducted the test of an
interceptor missile to establish a ballistic missile
defence (BMD) shield as part of the network-cen-
tric warfare on march 6,2009. The test was car-
ried out from the Integrated Test Range (ITR) from
the Wheeler Island near Dhamra off Orissa coast.
The modified version of ‘’Dhanush’’ missile,
known as naval version of Prithvi, a surface-to-
surface missile acting as an enemy missile was test
fired from a naval ship INS Rajput anchored in-
side the Bay of Bengal at 1620 hours.When it ze-
roed in on the wheeler island of Dhamara coast, a
Prithvi Air Defence (PAD) missile, a ballistic mis-
sile with a range of 1,500 km, similar to Pakistan’s
Ghauri, test fired from the Wheeler Island inter-
cepted the incoming missile at an altitude of 70-
80 kms.
DRDO sources said the ‘’crucial test’’ conducted
for the third time proved the efficacy of a host of
new technologies. The interceptor PAD missile
has for the first time used the gimballed direc-
tional warhead which has so far been used only in
the United States and Russia.
The first interceptor missile test was conducted
on November 27, 2006 and waylaid an incoming
Copyright © 2009 | WWW.UPSCPORTAL.COM
ballistic missile in the exo-atmosphere at 48-km
altitude. The second test was carried out on De-
cember 6, 2007 against a target missile at 15-km
altitude in endo-atmosphere, intercepting the ‘’en-
emy’’ missile at an altitude of 70-80 km. The
ground tests of the missile have been done on the
directional warhead
Notable Points
» It was for the first time the test was done on
flight.
» Intercepting a missile at a higher altitude of 80
km has the advantage as the debris will take longer
to fall through the atmosphere before it hits the
ground.
» In a typical war scenario, this would reduce the
effect of any fallout of nuclear debris and the risk
associated with radiation.
» The third test would be part of India’s plan to
deploy a two-layered ballistic missile defence
(BMD) system in the coming years.
Wildlife Conservation in India
Wildlife includes all non-domesticated plants,
animals, and other organisms. Domesticating wild
plant and animal species for human benefit has
occurred many times all over the planet, and has
a major impact on the environment, both positive
and negative. Wildlife can be found in all ecosys-
tems, Deserts, rain forests, plains, and other areas
including the most developed urban sites all have
distinct forms of wildlife. While the term in popu-
lar culture usually refers to animals that are un-
touched by human factors, most scientists agree
that wildlife around the world is impacted by
human activities.
Indian wildlife
The wildlife of India is a mix of species of diverse
origins. The region’s rich and diverse wildlife is
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 Section -6 (IAS Mains Special : Science And Technology)
preserved in numerous national parks and wild-
life sanctuaries across the country. Since India is
home to a number of rare and threatened animal
species, wildlife management in the country is
essential to preserve these species. According to
one study, India is home to about 60-70% of the
world’s biodiversity. India, lying within the
Indomalaya ecozone, is home to about 7.6% of all
mammalian, 12.6% of avian, 6.2% of reptilian, and
6.0% of flowering plant species. Many ecoregions,
such as the shola forests, also exhibit extremely
high rates of endemism; overall, 33% of Indian
plant species are endemic. India’s forest cover
ranges from the tropical rainforest of the Andaman
Islands, Western Ghats, and Northeast India to
the coniferous forest of the Himalaya. Between
these extremes lie the sal-dominated moist decidu-
ous forest of eastern India; teak- dominated dry
deciduous forest of central and southern India; and
the babul-dominated thorn forest of the central
Deccan and western Gangetic plain. Important
Indian trees include the medicinal neem, widely
used in rural Indian herbal remedies. The papal
fig tree, shown on the seals of Mohenjo-daro,
shaded the Gautama Buddha as he sought enlight-
enment.
Various Projects
Gir National Park in Gujarat is the only existent
habitation for the nearly extinct Asiatic Lions in
India. The Kaziranga Sanctuary in Assam is a ma-
jor example of good effort to save the endangered
Rhinoceros. Similarly, Periyar in Kerala is doing a
great job to preserve the wild Elephants and
Dachigam National Park is progressing rapidly to
save Kashmiri Stag.
Wildlife Conservation in India occupies a total area
of about 3.29 million sq. km. that contains floral
and faunal species, mammals, reptiles, insects and
birds. The Wildlife Conservation in India has be-
come the most popular holiday destinations be-
cause of its diverseness. In India there are 571 sanc-
tuaries and reserve parks that are protected by the
Indian Government, mainly meant for the pro-
tection of the extinct species of animals and birds.
Predators, Carnivores and Herbivores, - all are
equally important to maintain the vital ecological
Copyright © 2009 | WWW.UPSCPORTAL.COM
processes as nutrient and water cycling. India has
over 500 animal sanctuaries, referred to as Wild-
life Sanctuaries (IUCN Category IV Protected
Area). Among these, the 28 Tiger reserves are
governed by Project Tiger, and are of special sig-
nificance in the conservation of the tiger.
Some of the important wildlife sanctuaries in
India are:
» Bandhavgarh National Park in Madhya Pradesh
» Corbett National Park in Uttar Pradesh
» Gir National Park & Sanctuary in Gujarat
» Kanha National Park in Madhya Pradesh
» Kaziranga National Park in Assam
» Periyar Wildlife Sanctuary in Kerala
» Sariska Wildlife Sanctuary in Rajasthan
» Sunderbans National Park in West Bengal
» Dachigam National Park in Jammu & Kashmir
» Manas Tiger Reserve in Assam
National Parks of India
India’s first national park (an IUCN category II
protected area) was established in 1935 as Hailey
National Park, now known as Jim Corbett national
park. By 1970, India only had five national parks.
In 1972, India enacted the Wildlife Protection Act
and Project Tiger to safeguard the habitats of con-
servation reliant species. Further federal legisla-
tion strengthening protections for wildlife was
introduced in the 1980s. As of April 2007, there
are 96 national parks. All national park lands en-
compass a combined 38,029.18 km², 1.16% of
India’s total surface area. A total of 166 national
parks have been authorized. Plans are underway
to establish the remaining scheduled parks.
Biosphere Reserves
The term ‘Biosphere Reserve’ should denote an
area:
» Which is, set aside for the conservation of the
resources of the biosphere and for the improve-
ment of the relationship between man and the
environment;
» Which is, to serve as sites for long term scien-
81
 Section -6 (IAS Mains Special : Science And Technology)

tific research as well as education all over the

world. List of Biosphere Reserves
The programme of Biosphere Reserve was initi- » Achanakmar-Amarkanta- Madhya Pradesh &
ated under the ‘Man & Biosphere’ (MAB) Chhattishgarh
programme by UNESCO in 1971. Biosphere Re-
serves are areas of terrestrial and coastal ecosys-
» Agasthyamalai- Kerala
tems promoting solutions to reconcile the conser- » Dehang-Debang- Arunachal Pradesh
vation of biodiversity with its sustainable use.
They are internationally recognized, nominated » Dibru-Saikhowa- Assam
by National Governments and remain under sov-
ereign jurisdiction of the states where they are
» Great Nicobar- Andaman and Nicobar
located. Biosphere Reserves serve in some ways » Gulf of Mannar - Tamil Nadu
as ‘living laboratories’ for testing out and demon-
strating integrated management of land, water and » Khangchenjunga – Sikkim
biodiversity.
» Manas- Assam
Biosphere Reserve Objectives » Nanda Devi-Uttaranchal
Each Biosphere Reserve is intended to fulfill » Nilgiri -Tamil Nadu, Kerala, and Karnataka
three basic functions, which are complemen- » Nokrek-Meghalaya
tary and mutually reinforcing:
» A conservation function - to contribute to the » Pachmarhi -Madhya Pradesh
conservation of landscapes, ecosystems, species » Simlipal-Orissa
and genetic variation;
» Sunderbans-West Bengal
» A development function - to foster economic
and human development which is socio-cultur-
ally and ecologically sustainable;

» A logistic function - to provide support for re-

search, monitoring, education and information
exchange related to local, national and global is-
sues of conservation and development.

The Indian government has established 15 Bio-

sphere Reserves of India, (categories roughly cor-
responding to IUCN Category V protected areas),
which protect larger areas of natural habitat (than
a national park or animal sanctuary), and often
include one or more National Parks and/or pre-
serves, along buffer zones that are open to some
economic uses.

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82
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83
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
Social Problems & Welfare Schemes
Rashtriya Madhyamik Shiksha Abhiyan
The CCEA on January 02, 2009
approved the implementation
of a centrally sponsored
scheme to universalise access to
and improve quality of educa-
tion at Secondary stage, called
Rashtriya Madhyamik Shiksha
Abhiyan (RMSA) during the
11th Five Year Plan.
As regards the Financing pattern and fund flow,
Union Government shall bear 75% of the project
expenditure during the 11th Five Year Plan, with
25% of the cost to be borne by State Governments.
Sharing pattern will be 50:50 for the 12th five year
plan. For both the 11th and 12th Plans, funding
pattern will be 90:10 for North Eastern States.
Rs.20,120 crore has been allocated for the Scheme
during the 11th Five Year Plan.
The Objective of the Scheme
» To achieve a General Enrolment Ratio (GER) of
75% for classes IX-X within 5 years by providing
a secondary school within a reasonable distance
of every habitation;
» To improve quality of education imparted at
secondary level through making all secondary
schools conform to prescribed norms;
» To remove gender, socio-economic and disabil-
ity barriers, Universal access to secondary level
education by 2017, i.e. by the end of 12th Five
Year Plan and Universal retention by 2020.
Broad physical targets include improving the en-
rolment ratio for classes IX-X to 75% within 5
years from 52.26% as in 2005-06, providing fa-
cilities for estimated additional enrolment of 32.20
lakh by 2011-12 through, strengthening of about
44,000 existing secondary schools, opening 11,188
new secondary schools, appointment of 1.79 lakh
Copyright © 2009 | WWW.UPSCPORTAL.COM
additional teachers and construction of 80,500
additional classrooms.
Interventions approved include providing infra-
structure in schools such as new classrooms with
furniture, library, science laboratory, computer
room, disabled friendly provisions etc, recruitment
of additional teachers with emphasis on Science,
Mathematics and English teachers, in service train-
ing of teachers, teaching aids such as ICT and spe-
cial focus on SC/ST/Minorities Girls. Steps such as
priority for opening or upgradation of schools in
areas of SC/ST/minority/weaker section concen-
tration and enrolment drives and special coach-
ing classes in those areas are also envisaged under
the scheme.
Implementation
The Scheme will be implemented in a Mission
mode, with a National Mission headed by the
Union Minister for HRD and a Project approval
Board headed by Secretary (School Education and
Literacy) to appraise and approve state plans. Simi-
larly, State Missions under Chief Ministers of the
States/UTs will be set up.
The Scheme envisages development of State-spe-
cific norms and District will be the unit of plan-
ning. The district plan will be appraised and con-
solidated at the State level and the State plan will
be appraised by the technical support group at-
tached to the National Mission. The civil construc-
tion will be through School Management and
Development Committee with representation
from parents, Panchayati Raj Institutions and civil
society.
Saakshar Bharat Mission
The Prime Minister, Dr. Manmohan Singh
launched on September 08, 2009, SAAKSHAR
BHARAT, one of the major new initiatives that
form part of the Government’s agenda for the next
5 years as announced by the President in her ad-
84
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
dress to the joint session of the Parliament. This
programme will strive to create a Literate Society
through a variety of teaching learning programmes
for non-literate and neo-literate of 15 years and
above.
The Saakshar Bharat Mission has 70 million tar-
geted beneficiaries, of which 60 Million will be
women and nearly 50% of the target group will
comprise of SCs/STs and minorities. Since illiteracy
is far more widespread in rural areas, as compared
to urban areas, the programme will concentrate
on rural areas, especially in the districts that have
low (50% and below) female literacy rate. Nearly
1.70 lakh Gram Panchayats in 365 districts will
be covered. Residual illiteracy in urban areas will
be addressed through innovative partnership with
NGOs, private sector convergence etc. The total
estimated cost of the Mission is Rs. 6502.70 crore
of which 4993.02 crore would be central share.
The sharing between the Centre and the State
would be 75:25 except for the North-east where
it will be 90:10.
Prime Minister said that the launch of this mis-
sion reaffirms national commitment to literacy.
The Prime Minister underlined the importance
of literacy, especially female literacy. He said that
Government has started a number of progressive
programmes and legislations for the empowerment
and welfare of the common person, the aam aadmi.
The National Rural Employment Guarantee
Scheme, the Right to Information Act, the Rural
Health Mission, the Sarva Siksha Abhiyan and the
National Mid-day Meal Programme are all efforts
in that direction. Literacy is central to the success
of all these programmes and initiatives Female lit-
eracy is especially so. Female literacy is a force
multiplier for all action for social development.
This is self-evident and does not require any elabo-
ration. In fact, many observers have seen infra-
structure development in the economic sector and
female literacy in the social sector as two very
critical factors that impede India’s steady climb to
a higher and sustainable level of growth and de-
velopment. Female literacy is also absolutely nec-
essary to empower the Indian woman in her ev-
ery day struggle in dealing with multiple depri-
vations on the basis of class, caste and gender.”
Copyright © 2009 | WWW.UPSCPORTAL.COM
The Prime Minister expressed the sincere hope
that the Saakshar Bharat Mission will fully involve
the local community in its implementation, and
utilize the potential and promise of the Panchayati
Raj Institutions and the women’s Self Help Groups.
Expressing his happiness that the implementation
of this programme has been entrusted to the Gram
Panchayats, he said he would also expect the mis-
sion to make use of innovative strategies and tech-
nology to impart sustainable literacy to millions
of non-literates in a reasonable period of time.
The Right of Children to Free and
Compulsory Education Act, 2009
The “The Right of Children to Free and Compul-
sory Education Act, 2009” has been notified, after
receiving the assent of President. Article 21-A, as
inserted by the Constitution (Eighty-sixth Amend-
ment) Act, 2002, provides for free and compul-
sory education of all children in the age group of
six to fourteen years as a Fundamental Right in
such manner as the State may, by Law, determine.
Consequently, the Right of Children to Free and
Compulsory Education Act, 2009, has been en-
acted by the Parliament. The Act received the
assent of the President on 26th August, 2009.
The Right of Children to Free and Compulsory
Education Act, which makes education a funda-
mental right of every child in the age group of six
to 14 years, has come into force with the Presi-
dential assent. The Bill was passed in both Houses
of Parliament during the Budget session.
The Act, one of the flagship programs in the 100-
day agenda of the UPA government, earmarks 25
per cent seats to weaker sections in neighborhood
schools. The government would reimburse the
money at government rate towards these seats.
The law prohibits payment of donations or capi-
tation fees or interviewing the child or parents as
part of a screening procedure. The financial bur-
den to implement the Act will be shared between
states and Center. A school can be fined up to Rs
100,000 if not recognized by a regulating body.
85
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
State of Education
India now has lesser number of single-teacher
schools than it had a year ago. The latest govern-
ment study on the state of elementary education
in India shows that percentage of single-teacher
schools in the country has declined from 11.76 in
2006-07 to 10.13 in 2007-2008, an improvement
of 1.63 per cent. Among the States, Puducherry is
ranked first in both primary and elementary edu-
cation, while Bihar, Arunachal, West Bengal and
Jhar-khand are at the bottom. Kerala is the first
in upper primary education, while Delhi and
Chandigarh are fourth and fifth, respectively. The
government also lists Muslim students as a sepa-
rate category saying the percentage of Muslim
enrolment in primary classes increased to 10.49
in 2008 as against 9.39 the previous year.
Pension Schemes for Widows and Se-
verely Disabled
Indian government on Feb 19, 2009 launched the
pension scheme for widows, Indira Gandhi Na-
tional Widow Pension Scheme in the age group
of 40 to 64 and severely disabled persons, Indira
Gandhi National Disability Pension Scheme above
18 but below 65 and below the poverty line. While
the Centre will provide Rs. 200 a month, the States
have been requested to contribute at least a simi-
lar amount to the beneficiaries, for a monthly as-
sistance of Rs. 400.
44,04,289 widows and 15,56,004 disabled persons
with at least 40 per cent severity would benefit
from the two new schemes that would entail an
expenditure of Rs. 1057.03 crore and Rs. 373.44
crore respectively. Government issued directives
that the responsibility of identifying beneficiaries,
enrolling and opening bank accounts would be that
of the authorities. As in the case of disabled per-
sons, a team of doctors would have to be deputed
at the block level to issue necessary certificates
immediately.
The Centre has formulated two schemes, Indira
Gandhi National Widow Pension Scheme and
Indira Gandhi National Disability Pension Scheme
Copyright © 2009 | WWW.UPSCPORTAL.COM
to cater to these two categories in addition to the
existing Indira Gandhi National Old Age Pension
Scheme, under which those who attained the age
of 65 are given a monthly pension of Rs. 200.
Initiatives in Interim Budget-2009-2010
The UPA Government has launched many new
schemes to provide steady monetary assistance to
weak and downtrodden people of society. Empha-
sis has also been given to the empowerment of
women as an abiding objective of the UPA Gov-
ernment. To strengthen social and economic in-
clusion of minority communities, Government has
also announced the Prime Minister’s 15 point
programme for the welfare of the minorities. Ad-
equate allocations are being made to support this
initiative. The authorized capital of the National
Safai Karamchari Finance and Development Cor-
poration has raised from Rs 200 crore to Rs 300
crore to enable it to effectively carry out its man-
date. The scope of the pre-matric scholarship for
children of those engaged in unclean occupations
has been expanded and the rates of scholarships
have been doubled in 2008-2009. The annual
adhoc grant has also been substantially increased
by almost 50 percent as compared to the earlier
rates. Efforts of the Government and the financ-
ing institutions have led to rapid growth of credit
linked Women Self Help Groups now numbering
over 29 lakh. To give further fillip, the Rashtriya
Mahila Kosh will be strengthened by enhancing
its authorized capital.
Referring to the “Priyadarshini Project”, a rural
women’s empowerment and livelihood
programme launched in U.P. with assistance of
IFAD in December 2008, Government announced
that the project will be implemented as a pilot in
the district of Madhumani and Sitamarhi in Bihar
and Shravasti, Bahraich , Rai Bareli and Sultanpur
in U.P. So far, 146 lakh persons belonging to Be-
low Poverty Line (BPL) households have benefited
from the revised and modified scheme “Indira
Gandhi National Old Age Pension Scheme”, which
was launched on November 19, 2007.
In order to empower young widows in the age
group of 18-40 and equip them to stand on their
own feet it is proposed to give them priority in
86
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
admissions to ITIs, Women ITIs and National/
Regional ITIs for Women. Government will bear
the cost of their training and provide stipend of
Rs 500 per month. In the 22 States and Union
Territories have initiated the process to implement
Rashtriya Swasthya Bima Yojana for BPL families
in the Unorganised Sector and 60.32 lakh persons
have been covered for death and disability under
Aam Aadmi Bima Yojana.
State of World’s Children
Report- 2009
UNICEF released the State of World’s Children
Report- 2009 with some shocking findings regard-
ing maternal mortality status in India. Avoidable
complications during child birth are killing 78,000
women in India every year. One woman dies from
complications related to pregnancy and childbirth
every seven minutes. One million children born
in India are dying every year even before they
become 28 days old. A child born in India is 14
times more likely to die during the first 28 days
than one born in the US or UK.The maternal
mortality rate of India stands at 301 per 100,000
births. It is highest in Uttar Pradesh at 517 and
lowest in Kerala at 110.For Bihar it is 371.
An Indian woman is 350 times more likely to die
in childbirth or from pregnancy –related compli-
cations than women in America or England. For
every mother who dies, 20 others suffer pregnancy
related illness. Around 10 million women annu-
ally experience such adverse outcomes. Despite
an increase in institutional deliveries, 60% of preg-
nant women still deliver their babies at home. In
India more than 2/3 of all maternal deaths occur
in a handful of states- UP, Uttarakhand, Bihar,
Jharkand, Orissa, MP, Chattisgarh, Rajasthan and
Assam. In UP one in every 42 women faces risk of
maternal death compared to 1 in 500 women in
Kerala.
The main medical causes of maternal deaths are:
» Abortion: 8%
» Obstructed labor: 5%
» Hypertensive disorders: 5%
» Sepsis: 11%
» Hemorrhage: 38%
Copyright © 2009 | WWW.UPSCPORTAL.COM
» Other conditions: 34%
In India the states with the top five neonatal
mor tality rates are:
» Orissa- 52 deaths /1000 live births
» Madhya Pradesh- 51/1000 live births
» Uttar Pradesh- 46/1000 live births
» Rajasthan- 45 /1000 live births
» Chattisgarh- 43/1000 live births
Child Marriages
One more example of alertness of Indian admin-
istrative machinery is evident with the report of
UNICEF, which said that more than 40 per cent
of the world's child marriages take place in India,
even though the legal age for wedding is 18.
A report by UNICEF highlighted India's high rate
of child marriage as a major reason for the large
number of maternal and infant deaths. UNICEF
report also revealed shocking figures about how
India is still living the curse of child marriages,
one of the major causes of the high maternal mor-
tality rate.
High rate of child marriages in India is perhaps
one of the reasons why women in developing
countries like ours are 300 times more likely to
die during childbirth than those in the developed
world. Evidence shows that those who become
mothers in their teens are five times more likely
to die in childbirth than women in their 20s.
Though India has emerged as a key economic
power globally and has even reached the moon,
more than half of its population is struggling for
basic facilities like safe childbirth and care after
delivery - simple measures that the state has failed
to provide.
World’s Sanitation Report
Over 250 crore people across the world lack ac-
cess to improved sanitation, with nearly 120 crore
practising open defecation, the riskiest sanitary
practice of all. According to a report released
jointly by World Health Organisation (WHO) and
87
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)

UNICEF, the poor sanitation situation is a big

threat to children's survival as the faecal-contami- Progress on drinking water and sanita-
nated environment is directly linked to diarrhoeal
tion
disease, one of the biggest killers of infants under
the age of five.
The report, Progress on drinking water and sani-
tation-special focus on sanitation, that comes half-
The report is part of the WHO-UNICEF moni-
way through the International Year of Sanitation
toring programme for water supply and sanitation-
assesses-for the first time-global, regional and
the official UN mechanism tasked with monitor-
country progress using an innovative "ladder" con-
ing progress towards the Millennium Develop-
cept. This shows sanitation practices in greater
ment Goals (MDG) Target 7c on drinking water
detail, enabling experts to highlight trends in us-
supply and sanitation. Worldwide, the number of
ing improved, shared and unimproved sanitation
people who lack access to an improved drinking
facilities and the trend in open defecation. "Im-
water source that is protected from faecal and
proved sanitation" refers to any facility that hy-
chemical contamination has fallen below one bil-
gienically separates human waste from the envi-
lion for the first time since data were first com-
ronment. Similarly, the 'drinking water ladder'
piled in 1990.
shows the percentage of the world population that
uses water piped into a dwelling, plot or yard, and
Report Summary other improved water sources such as hand pumps,
and unimproved sources.
According to the report, presently 87 per cent of
the world population has access to improved
Alcoholism
drinking water sources, with current trends sug-
gesting that more than 90 per cent will do so by
It is now generally recognized that alcohol like
2015.The number of people practising open def-
the opium products is a narcotic. But alcoholism
ecation dropped from 24 per cent in 1990 to 18
constitutes a special problem because of the wider
per cent in 2006. The report also highlights dis-
use of alcohol and because of its entrenchment in
parities within national borders, particularly be-
the social customs. Alcoholism is a condition in
tween rural and urban dwellers. Worldwide, there
which the individual has lost control over his al-
are four times as many people in rural areas-ap-
cohol intake in that he is constantly unable to re-
proximately 74.6 crore-without improved water
frain from drinking once he begins.
sources, compared to some 13.7 crore urban dwell-
ers.
Definition
The report, however, said that the situation has
improved with more people now using improved According to Adolf Meyer alcoholism is the de-
sanitation facilities, which ensures that human velopment of an insistent craving for alcohol and
excreta is disposed of in a way that prevents them its effects. It is also defined as that condition char-
from causing disease by contaminating food and acterized by a relatively permanent, persistent
water sources. "Though the practice of open def- desire for alcohol for the sake of its anticipated
ecation is on the decline worldwide, 18 per cent effects upon body and mind. For Keller and Efron
of the world's population, over 120 crore people, alcoholism is characterized by the repeated drink-
still practise it, " the report said. In southern Asia, ing of alcoholic beverages to an extent that ex-
some 77.8 crore people still rely on this risky sani- ceeds customary use or compliance with the so-
tation practice, it added. cial customs of the community and that interferes
with the drinker’s health or his social or economic
functioning.

Copyright © 2009 | WWW.UPSCPORTAL.COM

88
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
Broadly speaking alcoholism has been charac-
terized by four factors:
» Excessive intake of alcoholic beverages
» Individual’s increasing worry over his drinking
» Loss of the drinker’s control over his own drink-
ing
» Disturbance in his functioning in the social world
Studies have been made only to throw scientific
light upon the question as to why people are ad-
dicted to the immoderate use of alcohol. In the
study of chronic alcoholics it was found that a
certain percentage of inebriates are pathological
individuals referred as constitutional alcoholics.
The industrialization of society and the mechani-
zation of the industry have put strains upon indi-
viduals to which the previous experience of the
race has not adapted. The social conventions in
cite the formation of alcoholic habits. The pres-
sure of social customs has exerted an important
influence in the production of alcoholism. There
are certain persons who are unable to face the
harsh realities of life and start drinking to over-
come their inadequacy. Men engaged in manual
work have long been deluded in the belief that
alcohol furnishes added strength and vigour with
which they can pursue their labour. Men drink
because their occupation has completely exhausted
them. They look forward eagerly to the respite
which intoxication affords after the heat of the
blast furnace or the stench of the dockyards. Ex-
cessive consumption of alcohol can make a per-
son addicted to it.
An addict is one whose drinking habit causes sev-
eral problems in one or more areas of his life for
instance his family relationships, jobs, financial
status etc. And in spite of all these problems, he
will continue to drink alcohol because his body
gets so accustomed over a period of time to the
presence of alcohol that if its use is stopped sud-
denly he will develop withdrawal symptoms like
tremors, fits etc. Such a state is called physical
dependence. Alcohol becomes so central to his
thoughts, emotions and activities that he is sim-
ply unable to think of anything else. This condi-
tion is called psychological dependence. Alcoholic
addiction is a disease rather than lack of will power
Copyright © 2009 | WWW.UPSCPORTAL.COM
or moral weakness. Unless the person stops drink-
ing, his/her condition will become worse over a
period of time.
A drinker passes through various stages to be-
come an alcoholic. These are:
1. Blackouts in which the individual is not able to
find a solution to his individual problems.
2. Sneaking drinks in which he takes alcohol with-
out being observed.
3. Increased tolerance, in which he tolerates the
increased effects of drinking.
4. Loss of control in which he fails to control the
desire of not taking alcohol.
5. Development of an alibi system in which he
gradually starts neglecting his social roles.
6. Going on periodic benders
7. Regular drinking in which he starts taking al-
cohol in the morning.
The problem of alcoholism in terms of personal
misery, family budget, discord, and loss of wages,
failure of health, accidents and cost in damage
claims, cost of hospital treatment, cost in custo-
dial treatment, inducement to crime are almost
disastrous. A good number of persons arrested for
crimes like rape, burglary, murder and theft are
those who committed them under the influence
of alcohol. Alcohol is a major factor in the high-
way accidents. Since alcoholism affects the fam-
ily members, friends and even the community, it
affects millions of people in the country. Drink-
ing reduces one’s operational activities and effi-
ciency to below the minimum level necessary for
social existence.
There are various programmes and measures for
alcohol treatment:
» Detoxification in hospitals: Alcohols need
medical care and medical supervision. Tranquil-
izers are used for treating their withdrawal symp-
89
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
toms like hallucinations. Vitamins and electrolyte
balance are used for physical rehabilitation.
» Involving an alcoholic’s family in his treatment
and rehabilitation enhances the chances of suc-
cess by 75 to 80%.
» One of the effective social therapies, which use
group interactions, is Alcoholics Anonymous. It
is an organization of ex-alcoholics, which started
in USA in early 1940s. In this, the members share,
their experience with other alcoholics and give
them strength and hope in an attempt to solve
their common problems and recover from alco-
holism. These associations are located in Delhi,
Mumbai, and Kolkata etc.
» Treatment centres: These centres are devel-
oped as alternative centres to hospital treatment
having 10-12 residents. Counselling and anti-
drinking rules are observed.
» Changing values through education: Some vol-
untary organizations undertake educational and
information programmes to alert the alcoholics to
the danger of excessive drinking. Social workers
help the drinkers in coping with life and chang-
ing the social values and attitudes about drinking.
Adolescent Reproductive and Sexual
Health Programme
The govt has launched a Programme called the
Adolescent Reproductive and Sexual Health
Programme under National Rural Health Mission
as a part of RCH.
This focus on ARSH and special interventions
for adolescents was in anticipation of the fol-
lowing expected outcomes:
Delay age of marriage, Reduce incidence of teen-
age pregnancies, meet unmet contraceptive needs
and reduce the number of maternal deaths, re-
duce the incidence of sexually transmitted diseases
and reduce the proportion of HIV positive cases
in the 10-19 years age group.
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Problems
One of the main problems during this phase of
growth is the inadequate calorie intake. Studies
have shown that girls in rural areas take a mean
of 1355K.Cals/day in the 13-15 years and 1292
K.Cals/day in the 16-18 years, which is much be-
low the recommended age groups. The commonly
observed health problems are vaginal discharge,
hair lice, headache, painful menstruation, irregu-
lar and excessive bleeding, dental problems and
short sight. Silent urinary tract infection, poor
menstrual hygiene is some other additional prob-
lems. Psychological problems also arise like emo-
tional disturbances, depression, low self esteem,
anxiety over inadequate or excessive secondary
sexual development etc.
Some of the specific strategies undertaken by vari-
ous govts are Kishori Balika scheme under ICDS
by Dept of Women and Child Development.
Weekly once 100 mg iron Folic Acid supplemen-
tation of all adolescent girls through schools and
anganwadi centers. Peer education and life skill
development through education dept in Tamil
Nadu, Maharashtra, Karnataka, AP etc. There is
need for a service for providing counseling for
adolescents within the district hospital and the
CHC.In primary health centers and subcentres the
skills to provide counseling both to adolescents
and also to newly weds must be available. Peer
educator network is also one of the key strategies
to meet adolescents especially in marginalized
groups like migrants ,rag pickers and certain oc-
cupational categories, street children and even
larger socially under privileged groups like the
urban slums or in tribal areas.Helplines and
internet are some of the other way through which
educated adolescent can access information. This
is the period of life when there is maximal need
for nutrition.
What is Adolescence
The 11 to 19 year old age is called adolescence.
This is the period of rapid change and maturation
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
when the child grows into the adult. This is one
of the most enjoyable stages of one’s life and it
has to be experienced with joy and friendship pav-
ing the way for building a healthy society with
good social relationships.
The National Population Policy 2000 identified
adolescents as an under served group for which
health needs and within this reproductive and
sexual health interventions are to be designed. The
National Youth Policy 2003 recognizes 13 to 19
years as a distinct age group which had to be cov-
ered by special programmes in all sectors includ-
ing health. The National Curriculum Framework
2005 for school education highlights the need for
integrating adolescent reproductive and sexual
health messages into school curriculum. Based on
this the National Adolescence Education
Programme of NACO along with the Ministry of
Human Resources Development is developed.
India Registers 2 Million Tuberculosis
Cases
The number of people infected with both tuber-
culosis (TB) and HIV is twice what researchers
previously thought. The World Health
Organisation’s (WHO) annual report on TB, pre-
sented in Rio, indicates that there were 1.37 mil-
lion cases of people with both TB and HIV in 2007,
the latest year for which statistics are available.
Asia registered the most TB cases in 2007, with
55%, while Africa had 31%. Among nations, In-
dia had the most cases with two million; China
had 1.3 million and Indonesia 530,000.
Public Health System in India
Public health system in India suffers from many
problems which includes insufficient funding,
shortage of facilities leading to overcrowding and
severe shortage of trained health personnel. There
is also lack of accountability in the public health
delivery mechanisms. These are some of the rea-
sons, which have placed India at the lowest rank
in the Human Development Index.
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India however holds top position in migration of
physicians to developed countries like UK and the
US. According to Planning Commission the coun-
try has a shortfall of six lakh doctors, 10 lakh nurses
and two lakh dental surgeons. This has led to a
dismal patient-doctor ratio in the country. For
every 10,000 Indians, there is just one doctor.
National Urban Health Mission
The much publicized National Urban Health Mis-
sion is yet to see the light of day. The scheme plans
to monitor and improve the health of 22 crore
people living in urban slums in 429 cities and
towns. It was to be launched mid 2008 but the
mission is yet to become functional. NURM is
aimed at providing accessible, affordable, effec-
tive and reliable primary health care facilities es-
pecially to urban poor. Even for NHRM there is
limited progress due to lack of standardization of
medical facilities.
India has banned tobacco consumption in public
places but only 12 states have started implement-
ing the ban. More than 10 lakh people at present
die in India every year due to tobacco consump-
tion. At present more than 57% male and 10.9%
female consume tobacco while 15% children con-
sume tobacco.
Female feticide continues to tarnish India’s
image.The child sex ratio (0-6 years) was 945 (1991
census) and this declined to 927 girls per thou-
sand boys (in 2001 census).The figures are alarm-
ing in prosperous states like Punjab(798),Haryana
(819),Chandigarh (845),Delhi (868),Gujarat (883)
and Himachal Pradesh (896).
The Third Edition of the Tobacco Atlas
The third edition of the Tobacco Atlas released in
Dublin by the American Cancer Society and World
Lung Foundation says that more women in India
are turning smokers and oral users of tobacco. In-
dia has the third highest number of female to-
bacco users in the world. Of the estimated 11.9
million female consumers of tobacco in India 5.4
million smoke it and rest chews the leaves. To-
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
bacco in any form is life threatening and is con-
sidered health hazard.
According to the report world wide tobacco con-
sumption could kill six million people in 2010 and
one third of those people would die of cancer.
About 25% of smokers die or become ill during
their most productive years, adversely impacting
families as well as economies. Earlier Tobacco
killed more men than women but this is slowly
changing as smoking rates are increasing among
women in many countries including India and
particularly among young women. The gap be-
tween tobacco death rates between men and
women is closing. Female smokers in India are
dying eight years earlier than their non-smoking
peer group.
Smoking creates health problems among women
especially reproductive health .It not only ad-
versely affect the health of eggs produced ;it could
compromise the health of the expectant mother
and the foetus.It is true for passive smokers as well.
Tobacco consumers are more vulnerable to dis-
ease especially cancer and particularly lung can-
cer.
There are many factors leading to increase in
women smoking. Smoking dulls the appetite and
is seen as convenient and easy way of following
diet plan to help weight loss. In rural areas by
default women catch the smoking habit as they
are required to light their husband’s hukkas .Some
women smoke beedis as past time.
Indian government should do more public aware-
ness campaigns. The other ways would be more
stringent legislation, high pricing and pictorial
warnings on cigarette packs.
On current trends the goal of halving hunger
would not be until 2035, 40 countries would have
equal enrolments for boys and girls until after 2025
and current progress in cutting maternal mortal-
ity rates was less than 1/5th of what was needed
to meet the goal. The total number of HIV/AIDS
infections in 2007 was 33 million-the highest ever.
According to Action Aid discussions at the UN
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and this year’s meeting of the G-8 industrial na-
tions in Japan would only succeed if they started
with the recognition that the development emer-
gency is first and foremost an emergency for
women and girls. The lack of progress on mater-
nal health shows people lives are at stake.
SD Tendulkar Report on Poverty
According to a recent Indian government com-
mittee constituted to estimate poverty, nearly 38%
of India’s population (380 million) is poor. This
report is based on new methodology and the fig-
ure is 10% higher than the present poverty esti-
mate of 28.5%.
Different Methodology
The committee was headed by SD Tendulkar has
used a different methodology to reach at the cur-
rent figure. It has taken into consideration indi-
cators for heath, education, sanitation, nutrition
and income as per National Sample Survey Orga-
nization survey of 2004-05.This new methodol-
ogy is a complex scientific basis aimed at address-
ing the concern raised over the current poverty
estimation.
Since 1972 poverty has been defined on basis of
the money required to buy food worth 2100 calo-
ries in urban areas and 2400 calories in rural ar-
eas. In June this year a government committee
headed by NC Saxena committee estimated 50%
Indians were poor as against Planning
Commission’s 2006 figure of 28.5%.
Poverty is Biggest Problem
Poverty is one of the main problems which have
attracted attention of sociologists and economists.
It indicates a condition in which a person fails to
maintain a living standard adequate for his physi-
cal and mental efficiency. It is a situation people
want to escape. It gives rise to a feeling of a dis-
crepancy between what one has and what one
should have. The term poverty is a relative con-
cept. It is very difficult to draw a demarcation line
between affluence and poverty.
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
Even after more than 60 years of Independence,
India still has the world's largest number of poor
people in a single country. Of its nearly 1 billion
inhabitants, an estimated 260.3 million are below
the poverty line, of which 193.2 million are in
the rural areas and 67.1 million are in urban ar-
eas. More than 75% of poor people reside in vil-
lages. Poverty level is not uniform across India.
The poverty level is below 10% in states like Delhi,
Goa, and Punjab etc whereas it is below 50% in
Bihar (43) and Orissa (47). It is between 30-40%
in Northeastern states of Assam, Tripura, and
Mehgalaya and in Southern states of TamilNadu
and Uttar Pradesh.
Agreement with World Bank on Health Project
India has signed a Financing Agreement of Na-
tional Vector Borne Disease Control and Polio
Eradication Support Project with the World Bank
on February 13th, 2009.
The agreement is for a total assistance of approxi-
mately 518 million dollar as part of IDA alloca-
tion to India. The agreement was signed by Dr.
Alok Sheel, Joint Secretary, Department of Eco-
nomic Affairs on behalf of Government of India
and. Rachid Benmesssaoud Operations Adviser,
World Bank (India), signed on behalf of the World
Bank.The closing date of the project is December
31, 2013.
Objective
The project aims at enhancing the effectiveness
of government response to control malaria, elimi-
nate Kala Azar and eradicate polio. This will be
achieved by increasing the number of people ben-
efiting from effective prevention, diagnosis and
treatment services for malaria and Kala Azar, and
vaccination against polio.
The project will have four components including.,
“Improving Access to and Use of Services for Con-
trol of Malaria”, “Improving Access to and Use of
Services for Elimination of Kala Azar”, “Policy and
Strategy Development, Capacity Building and
Monitoring and Evaluation” and “Improving Po-
lio vaccine availability”.
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Supreme Court on Anti-Rragging
Norms
The Supreme Court on 9 May 2009 added teeth
to its earlier stringent anti-ragging directions by
making the head of the institution and the
local police chief liable for disciplinary action if
any ragging incident takes place within their ju-
risdiction.
The fresh directives were added to its earlier guide-
lines, which among other punishments also pro-
vided for rustication of the errant senior if he in-
dulged in ragging, as the ragging-related death of
Amann Kachroo exposed the chinks in their
implementation.
Pronouncing the elaborate measures, most of
which were suggested by the SC committee
headed by former CBI director R K Raghvan, a
Bench comprising Justices Arijit Pasayat and A K
Ganguly directed a national level committee to
suggest remedial measures in the school curricu-
lum to limit the ragging menace by studying the
impact of this physical abuse on students.
Major anti-ragging directions
Penal consequences and departmental proceedings
against institutions and departmental heads who
show apathy towards complaints of ragging
Freshers to be divided into small groups and af-
filiated to a teaching staff who would keep con-
stant vigil on their welfare and protect them from
seniors
Round-the-clock vigil on hostel pre-
mises
Departmental action against principal of Rajendra
Prasad Government Medical College (RPGMC),
where Amann Kachroo died after ragging
SHO/SP, within whose jurisdiction a particular
college falls, shall be responsible for ensuring that
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
no ragging takes place on the campus of the con-
cerned colleges
Amann's father Rajendra Kachroo to assist
Raghvan Committee to provide a linkage between
committee's efforts and the NGO anti-ragging
movement
De-addiction measures in RPGMC where alcohol-
ism is rampant
Raghavan Committee
The Raghavan Committee on ragging, constituted
by the apex court to monitor implementation of
its omnibus order banning ragging in colleges,
submitted its 'not so happy' latest status report on
12 August 2008 to a Bench comprising justices
Arijit Pasayat and Mukandakam Sharma.
Summarising its view after scanning of ragging
incidents across the country till August 5, the com-
mittee through additional solicitor general Gopal
Subramaniam told the Bench that "overall progress
in the matter was slack, and more effort needed
to be shown by regulatory bodies in the form of
regulations and directions" to achieve zero toler-
ance towards ragging.
Expressing displeasure over the helplessness
shown by regulatory bodies like UGC, AICTE,
MCI and DCI, the committee said unless the fi-
nancial grant to the institutions was linked to their
action against ragging, it would not be possible to
completely stamp out the menace from the cam-
pus. The Bench, taking the suggestions on record,
said it would pass appropriate orders for effective
implementation of its order on the ban on rag-
ging in educational institutions.
The committee stressed the need to "give exem-
plary punishment, as directed by the Supreme
Court, to students found guilty of ragging" so that
the seriousness with which the offence was
viewed by the authorities should sink in among
students.
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Female Foeticide
Terming female foeticide as a "shame" on Indian
society, Prime Minister Manmohan Singh said to
nation from the Red Fort on the 63rd Indepen-
dence Day that the country cannot progress un-
less women become equal partners in growth.
The Prime Minister announced the launch of a
National Female Literacy Mission with an aim to
reduce female illiteracy by half. He said special
care would be taken of needs of women and chil-
dren and added that the Government has decided
to extend the benefit of ICDS to every child be-
low the age of six years by March 2012.
Female Foeticide Scenario
The 2001 census of India reveals a decline in the
overall child sex ratio for the age-group 0-6 years
from 945 in 1991 to 927 in 2001.Contrary to the
belief that the malaise is typical to rural ,back-
ward areas, urban centers more literate and lib-
eral have shown a drop from 935 in 1991 to 906
in 2001.
In Delhi, the national capital, the child sex ratio
is an alarming 868.While the reasons for this vary
from higher female mortality at a younger age as
a result of neglect to infanticide and foeticide; the
dismal numbers are a telling comment on the edu-
cated society that refuses to rid itself of its regres-
sive male bias.
The Pre-natal Diagnostic Techniques Regulations
and Prevention of Misuse Act came into force in
1994 to curb selective sex determination. With
rapid improvements in diagnostic technology the
Act was amended in 2003 in order that it became
more comprehensive and was renamed the Pre-
conception and Pre-natal Diagnostic Techniques
(Prohibition of Sex Selection) Act.
To monitor the implementation of the PC & PNDT
Act, the ministry of Health and Family Welfare
has set up a Central Supervisory Board as well as
state-level supervisory committees. A ministry
report indicates that there are 420 ongoing court/
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
police cases for violations of the law. Of these only
65 cases relate to identification and revelation of
the sex of the foetus, 43 are against people who
have advertised facilities for sex selection and the
rest are for non-registration of clinics/facilities.
Apart from the nature of the Act, government
inaction in most cases is due to the fact that the
patient, her family and the violators of the law
are hand-in-glove. The Annual Report (2006) of
the PC &PNDT division also identifies the non-
availability of evidence or witnesses as the chief
hindrance to implementing the law. The unscru-
pulous doctors and patients have developed their
own sex determination code language to circum-
vent the law. For an instance if a doctor says col-
lect the report on Monday the family is meant to
infer that the unborn child is a boy. Friday con-
notes the girl child. Also signing a report in blue
ink indicates a boy while red ink is meant for baby
girls. The Annual Report mentions the fact the
CMO or CS is usually not empowered enough to
bring violators to book. Also abortions to limit
family size add to the difficulty of nabbing guilty.
Despite the loopholes the government has exerted
itself to advocate the girl child's right to live. A
new website has been launched www.pndt.gov.in
with the facility to file a complaint online against
doctors, maternity homes and clinics. The orga-
nizations like Sonological Society of India are also
supporting the government initiatives.
Decrease in Employment Rate in India
The Centre's estimates have revealed a decline in
overall employment rate by more than a lakh in
the first quarter of the calendar year 2009 contra-
dicting its own claims of insulating the economy
from the global meltdown. There was a decline in
employment by 1.31 lakhs during the months of
April to June 2009. Om a monthly basis, the em-
ployment rate in April dropped by .38 lakhs and
1.57 lakhs in May but fortunately saw a slight rise
of 0.64 lakhs in June.
Worst Hit Sectors
Export oriented sectors like the IT/BPO, textiles
and gems and jewellery are among the worst hit
Copyright © 2009 | WWW.UPSCPORTAL.COM
sectors with decline in the employment for each
sector being 0.48 lakhs, 0.23 lakhs and 1.52 lakhs
respectively. In fact there seems to be a steady
decrease in employment rates on a monthly basis
in the IT/BPO sector i.e. 0.24 lakhs loss of jobs
increasing upto 0.33 lakhs in May.
The Labour Bureau, on analysis of 3003 establish-
ments which were previously covered in an analy-
sis, disclosed estimates which made a report on
the effect of the global meltdown on employment
rates in India for the months April to June 2009.
The report said that the government of India has
been keeping a close watch on the dwindling
employment rates due to the slowdown in
economy in all basic sectors. There has been how-
ever reason to cheer in some departments such as
the leather and automobiles sectors as there was a
slight increase in employment during this particu-
lar period. The worst hit among all sectors though
was the textiles sector which was down by 1.54
lakhs during this quarterly period. An important
observation is the increase in employment in non-
exporting sectors as compared to the simultaneous
decline in the exporting sector as there has been
an increase of 0.35 lakhs in the non exporting sec-
tor.
Contract Employment Replaced Regu-
lar Employment
A trend developing these days has been attrib-
uted to the decline in the employment rate. It is
the increase in contract employment which has
replaced regular employment. This can be particu-
larly noticed in banks as all labour has been turn-
ing computerised. This has been proved by the
0.40 lakh increase in employment in contractual
employment. Another important observation in
the report by the Labour Bureau was that migrant
workers returned to their hometowns during this
particular period resulting in the decline in em-
ployment in export sectors.
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
UNESCO Listed 196 Languages as En-
dangered
With 196 of its languages listed as endangered,
India, a nation with great linguistic diversity, tops
the UNESCO's list of countries having maximum
number of dialects on the verge of extinction. In-
dia is closely followed by the US which stands to
lose 192 languages and Indonesia, where 147 are
in peril.
Among the 196, 84 fall in the unsafe category
where children speak the language but it's re-
stricted to certain domains some of these include
Tulu, Konkani, Gharwali and Kumaoni. 103 are
endangered as they're only spoken by grandpar-
ents and the older generations sometimes partially
and infrequently and nine are extinct where no
speakers are left.
The facts were revealed in the latest Atlas of
World's Languages in Danger of Disappearing
unveiled by the UN's cultural agency UNESCO
on the eve of International Mother Language Day.
The atlas classifies around 2,500 of the 6,000 lan-
guages spoken worldwide as endangered.
It further adds that nearly 200 languages have
fewer than 10 speakers and 178 others have be-
tween 10 and 50 speakers. It reveals that over 200
languages used in the world have died out over
the last three generations, 538 are critically en-
dangered, 502 severely endangered, 632 definitely
endangered and 607 unsafe.
The language of Manx in the Isle of Man died in
1974 with the death of Ned Maddrell while Eyak
in Alaska met its demise last year when Marie
Smith Jones passed away.
According to the database, nearly one-third of all
of the world's languages are spoken in sub-Saharan
Africa, and it is estimate that 10 per cent of them
will disappear during the course of the next cen-
tury. However, the situation of languages is not
equally dire worldwide. For example, Papua New
Guinea, the most linguistically diverse with over
800 languages believed to be spoken there, has 88
relatively few endangered languages.
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Some languages classified as extinct, including
Cornish in the UK and Ssh in New Caledonia, are
being actively revitalised and could potentially
become living again. Still there is disheartening
news.
There are 199 languages in the world spoken by
fewer than a dozen people, including Karaim
which has six speakers in Ukraine and Wichita,
spoken by 10 people in the US state of Oklahoma.
The updated data represents a multi-fold increase
from the last atlas compiled in 2001 which listed
900 languages threatened with extinction.
More than 30 linguists worked on the Atlas, which
highlights how the phenomenon of disappearing
languages is evident in every region and in vary-
ing economic conditions. The database, which is
continually supplemented, corrected and updated
on user contributions, ranks the dying languages
as unsafe, definitely endangered, severely endan-
gered, critically endangered and extinct.
Grading System in Central Board of
Secondary Education (CBSE)
The Government on Aug 31, 2009 announced that
it will introduce grading system in all Central
Board of Secondary Education (CBSE) schools and
make Class X board exams optional from coming
academic year (2010-11).
Union Human Resource Development minister
Kapil Sibal said that Central Advisory Board of
Education (CABE) supports making Class X ex-
amination optional in CBSE system. The Class X
board exams will become optional in all CBSE
schools from the coming academic year (2010-11).
The CBSE has prepared the format of an aptitude
exam which schools can use to test Class X stu-
dents on their level of understanding in each sub-
ject. The emphasis, however, will be on continu-
ous and comprehensive evaluation (CCE) through
the year instead of a single public exam at the end
of Class X.
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
12 New Central Universities
The government will issue an ordinance to create
12 new central universities, it was announced on
jan 12,2009. The new universities will be estab-
lished in Bihar, Gujarat, Haryana, Himachal
Pradesh, Jammu and Kashmir, Jharkhand,
Karnataka, Kerala, Orissa, Punjab, Rajasthan and
Tamil Nadu.
In addition, the Dr. Harisingh Gour
Vishwavidyalaya at Sagar in Madhya Pradesh, the
Guru Ghasidas Vishwavidyalaya at Bilaspur in
Chhattisgarh and the Hemvati Nandan Bahuguna
Garhwal University at Srinagar in Uttarakhand
would be converted into central universities. These
institutions currently function as state universi-
ties.
The proposed ordinance would contain all the
provisions of the Central Universities Bill, 2008
pending in the Lok Sabha, with such changes as
may be necessary to implement the accepted rec-
ommendations of the parliamentary standing com-
mittee, which include, among others, dropping
of the conversion of Goa University into a central
university. The conversion of Goa University was
included in the bill on a specific request of the
state government.
Number of Female Post Graduates in
Urban India Rises
According to the latest report of the National
Sample Survey Organisation (NSSO), the number
of post graduates in every 1,000 males surveyed
has increased from 28 in 2001-02 to 35 in 2006-07
in urban India. The number of female post gradu-
ates has increased from 19 to 26 during the same
period. The number of male and female graduates
during the same period has increased from 97 and
67 to 111 and 82, respectively. The incidence of
illiteracy in rural areas has declined from 39.5%
in 2001-02 to 34.9% in 2006-07. In urban sector,
the same has declined from 19.4% to 16.5% dur-
ing the same period. What is significant is that in
both urban and rural sectors, the illiteracy rate of
Copyright © 2009 | WWW.UPSCPORTAL.COM
female has declined at a higher rate than that of
the male. Female illiteracy rate has declined by
4.6 percentage points in rural areas and 3.4 per-
centage points decline of the male illiteracy rate
in rural and urban sector respectively, during
2001-02 to 2006-07.
India Tops World Hunger Chart
India is failing its rural poor with 230 million
people being undernourished the highest for any
country in the world. Malnutrition accounts for
nearly 50% of child deaths in India as every third
adult (aged 15-49 years) is reported to be thin (BMI
less than 18.5). According to the latest report on
the state of food insecurity in rural India, brought
out by the United Nations World Food Programme
(WFP), more than 1.5 million children are at risk
of becoming malnourished because of rising glo-
bal food prices. The report said that while general
inflation declined from a 13-year high exceeding
12% in July 2008 to less than 5% by the end of
January 2009, the inflation for food articles
doubled from 5% to over 11% during the same
period. India ranks 94th in the Global Hunger
Index of 119 countries, the report said. More than
27% of world’s undernourished population lives
in India.
Pradhan Mantri Adarsh gram Yojana
Government on sept 7, 2009 has proposed to take
up a new scheme on a pilot basis, called “Pradhan
Mantri Adarsh gram Yojana” (PMAGY) for inte-
grated development of 1,000 villages, each hav-
ing more than 50% SC population.
The scheme aims to implement various develop-
ment projects in these villages, with an additional
fund of Rs 10 lakh per village to meet those re-
quirements that cannot be met from existing
schemes. If the pilot scheme is successful, it may
be expanded.
National Mission on Education
The Cabinet Committee on Economic Affairs has
approved a scheme, National Mission on Educa-
tion, to use the Information Communication Tech-
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 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
nology (ICT) to provide personalized and interac-
tive knowledge modules to students. The scheme
will cost Rs 4,612 crore in the 11th Plan. Over
18,000 colleges across India will get computer in-
frastructure and connectivity, including all depart-
ments in 419 universities, deemed universities and
institutions of national importance. In another
decision, the Cabinet approved the Rashtriya
Madhyamik Shiksha Abhiyan to increase enrol-
ment rates in secondary education from 52.56 per
cent at present to 75 per cent in 2012. Under the
scheme 11,188 new schools will be built and
44,000 existing schools strengthened and 1.79 lakh
additional teachers will be appointed.
Use of Auto Disable Syringes made
Mandatory
The Directorate General of Health Services has
made it mandatory for all states to use Auto Dis-
able (AD) syringes in all Government hospitals and
health centres with reference to April 1, 2009.
The action came in the wake of a national study
conducted by the Indiaclen Programme Evalua-
tion Network on behalf of the Ministry of Health,
Government of India, and World Bank, entitled
'Assessment of Injection Practices in India' in 2002
- 2005 which brought to light that in India nearly
two thirds of the injections are administered in
an unsafe manner and also all the injections ad-
ministered in India, one third carry a potential
risk of transmitting blood borne virus. AD syringes
eliminate the possibility of reuse and hence the
risk of infection through blood.
UNWFP Report
The United Nations World Food Programme
(UNWFP) said that most rural Indians are victims
of malnutrition, despite the introduction of sev-
eral government schemes to end the problem on
Feb 21st, 2009.
A UNWFP with MS Swaminathan Research Foun-
dation report said that 40 per cent of children
under the age of three are underweight and a third
of all men and women suffer from chronic energy
deficiency. It also stressed nutritional outcomes
Copyright © 2009 | WWW.UPSCPORTAL.COM
and the associated factors which influence them.
The report examined the effectiveness of some of
the important food-based interventions like the
Public Distribution System, the Integrated Child
Development Services and the Mid Day Meal
Scheme and recommends measures for improved
performance.
A survey by the Indian health ministry, backed
by UNICEF, had found that almost 46 percent of
children under the age of three are undernour-
ished.
2008 State of World Population Report
The United Nations Population Fund(UNFPA),
launched the 2008 State of World Population Re-
port in the Philippines in 2008 at EDSA Shangri-
la Hotel.
The theme of the report is ‘Reaching Common
Ground: Culture, Gender and Human Rights’. The
report, which coincides with 60th anniversary of
the Universal Declaration of Human Rights, is
based on the concept that the international hu-
man rights framework has universal validity. Hu-
man rights express values common to all cultures
and protect groups as well as individuals. The re-
port endorses culturally sensitive approaches to
development and to the promotion of human
rights, in general, and women's rights, in particu-
lar. Cultural sensitive approaches are essential for
reaching the Millennium Development Goals
(MDGs), including the fifth goal namely to im-
prove maternal health.
The Constitution (109th Amendment) Bill 2009
Parliamentary approval was accorded to a consti-
tutional amendment bill extending the reserva-
tion for Scheduled Castes (SC) and Scheduled
Tribes (STs) in parliament and state assemblies for
another 10 years, with the Lok Sabha passing the
measure on August 4th, 2009. The Constitution
(109th Amendment) Bill 2009 had been adopted
by the Rajya Sabha.
The measure also extends nomination of members
of the Anglo-Indian community to the Lok Sabha
98
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)
and the state assemblies by another 10 years. The
bill, moved by Law Minister M. Veerappa Moily
passed in a division vote with 385 of the members
present voting in favour, while one voted against
and one abstained.
Out of 543 Lok Sabha seats, 79 have been reserved
for SCs and 42 for STs and out of 3,961 assembly
seats, 543 are reserved for SCs and 527 for STs.
New Pension Scheme (NPS)
The New Pension Scheme (NPS) has been
launched on ‘Labour Day’ on May 1st, 2009 for all
the citizens. This followed the confirmation by
the National Interim Pension Regulator of the
scheduled launch of the Mega Pension Plan.
According to the Pension Fund Regulatory and
Development Authority (PFRDA), the necessary
infrastructure for the roll out of the NPS is now
ready and it will be available to all the citizens.
Under this scheme, the Central Government em-
ployees who joined on or after Jan 1, 2004 are also
covered under this.
Besides the government employees, bank branches
and post offices will be used to collect contribu-
tions for all the citizens. Six pension fund manag-
ers will plan schemes and manage funds. A cen-
tral record-keeping agency has also been ap-
pointed. All these institutions will be regulated
by an independent regulator, PFRDA.
Rs 22.6 Billion for Poor, Disabled Stu-
dents
Indian government has approved two schemes
worth Rs.22.6 billion to provide scholarship to
needy meritorious students and help 520,000 dis-
abled students to pursue education at the second-
ary level on Sep 18,2008.
In the first scheme, the cabinet committee on eco-
nomic affairs gave its approval for implementa-
tion of central sector scheme of scholarships for
college and university students worth Rs.10 bil-
lion during the 11th Five Year Plan period.
Copyright © 2009 | WWW.UPSCPORTAL.COM
The scheme will help meritorious students belong-
ing to poorer sections of the society to meet their
day-to-day expenses while pursuing college/uni-
versity education, who are not benefited by any
other scholarship scheme.
As part of the second package, the committee gave
its approval for introduction of a new centrally
sponsored scheme of 'Inclusive Education of the
Disabled at Secondary Stage (IEDSS)' at an expen-
diture of Rs.12.6 billion.
All disabled children passing out of the Class VIII
stage (middle school) in government, local body
and government-aided schools will be identified
for enrolment in the secondary stage (Class IX to
XII). As part of this initiative an estimated 520,000
disabled children will be provided education dur-
ing the 11th Plan period.
Urban-India Led in Unemployment
Unemployment rates are much higher among edu-
cated individuals, especially the ones in urban ar-
eas, according to the Indian Labor Market Report
2009 published by Tata Institute of Social Sciences
(TISS) 07 April 2009.
Among emerging sectors, the retail sector is the
largest employer, followed by construction, the
report says. While the segments including hospi-
tality, transport, communication and wholesale
and retail trade, have witnessed temporary recruit-
ment. The case of temporary recruits is far less
pronounced in the segments such as financial in-
termediation, mining and quarrying and real es-
tate. The report is based on the survey conducted
by the National Sample Survey Organisation
(NSSO).
While Goa has the highest unemployment rates
of 11.4 percent, followed by Kerala at 9.1 percent,
states, which enjoy the lowest unemployment
rates, are Uttaranchal and Chattisgarh - 0.5 per-
cent and 0.8 percent, respectively, shows a state-
wise analysis of the trend.
99
 Section -6 (IAS Mains Special : Social Problems & Welfare Schemes)

Gender-wise, urban women have the highest unemployment rates (9.2 percent) while the lowest is ac-
counted for by rural women at 7.31 percent. It is desirable that the existing pattern of the Indian labor
market - a dichotomy in gender, region, social security, and education - must undergo significant changes
to favor more human development.

The percentage of urban women, who are not part of the labor force, is higher than that of their rural
counterparts. While in most states, the percentage of rural women, not part of the labor force, is nearly 60-
70 percent, the corresponding figure for their urban counterparts is close to 80 percent.

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101
 Section -6 (IAS Mains Special : ECONOMY)
Economy
ASEAN and India Sign the Much Awaited Free Trade Area
The much-awaited
ASEAN-India
Trade in Goods
(TIG) Agreement
was concluded in
Bangkok on 13 August 2009 after six years of ne-
gotiations. The signing of the ASEAN-India Trade
in Goods Agreement paves the way for the cre-
ation of one of the world’s largest free trade areas
(FTA) - market of almost 1.8 billion people with a
combined GDP of US$ 2.75 trillion.
ASEAN-India FTA will see tariff liberalisation of
over 90 percent of products traded between the
two dynamic regions, including the so-called “spe-
cial products,” such as palm oil (crude and refined),
coffee, black tea and pepper.
Tariffs on over 4,000 product lines will be elimi-
nated by 2016, at the earliest. The ASEAN-India
TIG Agreement will enter into force on 1 January
2010 once India and at least one ASEAN Member
State notify completion of their internal ratifica-
tion process.
The ASEAN-India FTA is the fifth ASEAN-wide
FTA. The signing marks the end of protracted ne-
gotiations that spanned almost six years follow-
ing the signing of the ASEAN-India Framework
Agreement on Comprehensive Economic Coop-
eration in 2003.
The Economic Ministers from ASEAN Member
States and India signed the following agreements
to effect the free trade in goods among them when
theymet for their 7th AEM-India Consultations
in Bangkok, Thailand on 13 August 2009:
a) Protocol to Amend the Framework Agreement
on Comprehensive Economic Cooperation be-
tween ASEAN and India;
b) ASEAN-India Trade in Goods (TIG) Agreement;
c) Memorandum of Understanding on the Basel
Copyright © 2009 | WWW.UPSCPORTAL.COM
Convention on the Control of Trans-boundary
Movements of Hazardous Waste and Disposal; and
d) ASEAN-India Agreement on Dispute Settle-
ment Mechanism.
India-ASEAN Economic Relations
India-ASEAN relations have deepened and inten-
sified significantly in recent years. India desires
to build on our centuries old historical, cultural,
religious and economic ties with ASEAN to fash-
ion a dynamic relationship that not only encom-
passes trade and economic relations but all aspects
of human endeavour, bringing together our syn-
ergies in a mutually beneficial manner.
India has been following a conscious “Look East
Policy” since early 1990s. India’s interaction with
ASEAN is integral to this approach. There has been
steady progress in the India-ASEAN relationship
since the policy was initiated in 1991. We became
sectoral dialogue partners of ASEAN in 1992. In
1996, this was upgraded to full dialogue partner-
ship.
India-ASEAN functional cooperation
India-ASEAN functional cooperation includes co-
operation in sectors such as Science & Technol-
ogy, Human Resource Development, Health and
Pharmaceuticals, Space Sciences, Agriculture, In-
formation and Communication Technology,
Transport and Infrastructure, Tourism and Cul-
ture, and Small and Medium enterprises etc.
ASEAN side specifically sought close collabora-
tion with India in sectors such as S&T, ICT, bio-
technology, pharmaceuticals, Health and Disas-
ter Management. They have also expressed the
need to cooperate in developing traditional medi-
cines and in the manufacturing of affordable drugs,
particularly anti-retroviral drugs for Avian Influ-
enza. The need was also expressed for India and
ASEAN to work together on the critical issue of
climate change.
102
 Section -6 (IAS Mains Special : ECONOMY)
Towards the new building blocks for the evolving
regional architecture for cooperation, we proposed
several new measures. Among these are: realizing
India-ASEAN trade target of US $ 50 billion by
2010, simplification of visa regime for
businesspersons travelling from India to ASEAN
and vice-versa, launching of an India-ASEAN
Health Care Initiative with a focus to provide ba-
sic drugs at low cost, setting up of an India-ASEAN
Green Fund for undertaking pilot projects to tackle
issues associated with Climate Change, an ex-
panded Open Skies Policy with ASEAN, and a tar-
get of 1 million tourists to India from ASEAN re-
gion by the year 2010. Our thrust remains to cre-
ate an “arc of advantage” linking India with South
East Asia.
Recently, India finalized text of Trade-in-Goods
Agreement under a Free Trade Agreement (FTA)
with the ASEAN block, which will ensure lower-
ing of duties and free flow of trade in goods. This
Trade-in-goods (TiG) agreement is likely to be
signed in near future. The agreement will create a
market of over 1.5 billion people in the region.
India and ASEAN will also negotiate Agreement
in Trade-in-Services and Investment as a single
undertaking as soon as possible.
India has a stake in ASEAN’s stability in deepen-
ing economic integration and community build-
ing. In this regard PM has announced
operationalisation of the India-ASEAN Science
and Technology Fund with an initial corpus fund
of 1 million US dollars.
India-Egypt MoU for cooperation in
trade and economic fields
Picking up the threads of a relationship that had
gone dry for almost a quarter of a century, India
and Egypt on November 18, 2008, took the high
road, setting up a strategic dialogue and signing a
rash of agreements during President Hosni
Mubarak’s first visit to India in 25 years. India and
Egypt signed five agreements, including an extra-
dition treaty and one on cooperation in outer space
and an MoU for cooperation in trade and economic
fields.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Economic and Commercial Relations
Egypt has traditionally been one of India’s most
important trading partners in the African
continent. The India-Egypt Bilateral Trade Agree-
ment has been in operation since March 1978 and
is based on the Most Favoured Nation clause.
India emerged as Egypt’s third largest trading part-
ner behind the US and Italy in 2006. In 2007,
India’s rank was fourth behind the US, Italy and
Saudi Arabia. Both in 2006 and in 2007, India was
the largest importer of Egyptian products, mainly
on account of oil and gas. India’s rank among the
top countries to Egypt improved from 19th in 2005
to 14th in 2006 to 11th in 2007 and 9th in 2008.
Major Egyptian exports: oil and gas, coking coal,
raw cotton, rock phosphate, and marble
Major Indian exports: frozen meat, cotton yarn
and synthetic yarn, rice, diesel, tobacco, electri-
cal machinery, soybean, chemicals, automobiles
and components, sugar, pharmaceuticals and tea.
Bilateral Investment
India and Egypt signed the BIPA in April 1997,
which entered into force in November 2000. Ac-
cording to Egyptian sources, India is the 12th larg-
est foreign investor in Egypt with a total invest-
ment of approximately US$ 750 million in close
to 40 projects. Egyptian investments in India are
limited to a 10% stake of Orascom Telecom in the
then Hutchison-Essar which has since been
bought by Vodafone
Indian Projects in Egypt
Alexandria Carbon Black (ACB) set up by Grasim
India Limited with TRENCO and ATC as Egyp-
tian partners has been the leading successful joint
venture. Established in 1994 in Alexandria with a
capacity of 20,000 tonnes, its capacity has since
been increased to 180,000 tonnes. It exports 93%
of its product generating foreign exchange rev-
enue or savings of close to US$ 100 million for
Egypt annually.
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 Section -6 (IAS Mains Special : ECONOMY)
A new acrylic fibre plant, Alexandria Fibre Co.
was also set up in Alexandria by the Aditya Birla
Group in February 2006 with an initial investment
of $ 60 million and a capacity of 18,000 tonnes
per year.
Other major investments include the JV between
Asian Paints and SCIB Chemical, (Orascom
Group); in October 2004, HDFC facilitated the
setting up of EHDC (Egyptian Housing Develop-
ment Company) by acquiring 10% equity and pro-
viding technical as well as management assistance;
IFFCO has signed an agreement with Al Nasr
mines to establish a phosphoric acid plant in Up-
per Egypt entailing an investment of over $ 550
million; the Oberoi Group has been managing a
hotel and Nile cruises; ESSEL of India has set up a
JV for manufacturing laminated tooth paste tubes
for Proctor and Gamble in
Egypt; Dabur India Ltd. has established a 100%
owned facility for the production of its cosmetics
line; Niletex, a 100% Indian company manufac-
tures PVC water-storage tanks; M/s. Auto Tech
Engineering, another 100% Indian company,
manufactures auto valves; Kirloskar Brothers as-
semble diesel engines and irrigation pump sets in
Egypt; Ranbaxy has an Egyptian subsidiary for
manufacturing pharmaceutical formulations;
Ashok Leyland, Tata Motors, Maruti Suzuki and
Mahindra & Mahindra are marketing their ve-
hicles in Egypt, and Bajaj Auto dominated the
three-wheelers market. Marico, an Indian con-
sumer goods company acquired ‘Fiancee’, a cos-
metics line and ‘Hair Code’’, a hair care brand from
Egypt’s Ready Group. The Sanmar Group com-
pleted acquisition of a caustic soda unit of Trust
Chemicals of Egypt, located at Port Said in 2007,
at a cost of US$ 250 million. In June 2007, an agree-
ment was signed between South Asia Petrochemi-
cals Ltd. of India and ECHEM of Egypt to set up
the first PET resin plant in Egypt with a total in-
vestment of USD 100 million. In November 2008,
Kernex Microsystems were awarded a US$ 17.5
million contract by the Egyptian National Rail-
ways for modernization of 136 level crossings. In
December 2008, KEC International Ltd. bagged
an order valued at US$ 135 million awarded by
the Egyptian Electricity Transmission Company
Copyright © 2009 | WWW.UPSCPORTAL.COM
for a turnkey project for the design, supply and
construction of 196 km long 500 kV double cir-
cuit line. The project is funded by the European
Investment Bank.
Oil and Gas
Gas Authority of India Limited (GAIL) has equity
and management stake in two gas distribution
ventures in Fayoum and Cairo as well as in Natgas.
OVL and its partner IPR Red Sea Inc. have an-
nounced two oil field discoveries in the North
Ramadan Concession in the Gulf of Suez. GSPC
of Gujarat has bagged two oil and gas exploration
blocks in Egypt, one in the Mediterranean off-
shore and the other in the Western Desert.
IT: The Global Solutions Centre (GSC) of Satyam
Computer Services was inaugurated in Cairo on 5
March 2008. WIPRO has established a similar fa-
cility in Cairo. TCS is also in negotiations with
theEgyptian Ministry of IT for setting up opera-
tions in Egypt.
India and South Korea signed a CEPA
After more than three years of negotiations, In-
dia and South Korea signed a Comprehensive Eco-
nomic Partnership Agreement (CEPA) on August
9, 2009, covering trade in goods, services and in-
vestment, and international property rights. Both
countries agreed to gradually lower tariffs over a
10-year period, once the South Korean National
Assembly ratifies the agreement. The CEPA ne-
gotiations had started in March 2006 and were
concluded in September 2008.
The Cabinet had approved the pact in July 2009.
Under the CEPA, India will eliminate duties on
75 percent of products imported from South Ko-
rea on a custom-value basis during the eight years
after the CEPA becomes effective. South Korea
will remove duties on 93 percent of products from
India during the same period.
South Korea first time made such deal with an
emerging economy and India signed first time with
a major developed country. India’s agreement with
South Korea also allows for protection of vulner-
104
 Section -6 (IAS Mains Special : ECONOMY)
able industries, such as farming and forestry,
which both countries have conceded to establish
a lower level of market opening.
The CEPA comprises six agreements relating
mainly to opening up of trade in goods, services
and customs. It would give a boost to the more
than USD 10 billion bilateral trade.
South Korea expects that agreement on CEPA will
increase exports and diversify investment, and also
pave the way for future agreements with other
South Asian nations. India, a more service-driven
country, will benefit from the possibility of greater
human resource exchange, including allowing
Indian software experts and engineers easier ac-
cess to the South Korean market. Trade between
the two countries has been growing: it reached
US$15.6 billion in 2008, and should grow by an-
other US$3.3 billion in 2010 after the deal is
signed. In 2007-08, India exported USD 2.85 bil-
lion worth of goods to South Korea, posting a rise
of 13.5 per cent over the previous year.
CEPA
The CEPA is similar to a free trade agreement
(FTA), with a comprehensive coverage of trade in
goods and services and investments, as well as in-
tellectual property rights.
India-Africa Business Partnership
Summit
A two-day India-Africa Business Partnership sum-
mit in New Delhi on January 19-20, 2009 has
ended successfully in which External Affairs Min-
ister Pranab Mukherjee called for increased coop-
eration and dialogue with African nations on cru-
cial global issues, including Jihadi terrorism.
Mukherjee also referred other issues like climate
change, food and energy security, health, marine
piracy and democratization of financial institu-
tions. Addressing the global financial crisis, he said
that the model of international financial architec-
ture has come into question. He, however, gave
an optimistic statement saying that India will grow
at seven percent and continue the upward trend.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Mukherjee urged industry leaders and the Afri-
can continent to seek benefits from this opportu-
nity.
The External Affairs Minister also laid emphasis
on agriculture and food security for cooperation
between India and Africa, and said that Indian
companies have started exploring opportunities in
the production of pulses, cereals and oil seeds. This
will directly affect the farming communities by
providing partnerships to undertake contracts in
this sector.
Mukherjee further advised the two regions to cre-
ate a deep and wide economic engagement with a
focus on investment and technical tie-ups. De-
scribing India’s huge manpower as its biggest
strength, he called for cost effective and interme-
diate technologies at par with the human re-
courses.
He informed that the trade between India and
Africa has reached 30 billion US dollars and there
is a huge capacity to reach to greater heights.
Mukherjee also finalized the framework agree-
ment for professional trading with South African
Customs Union.
On the other hand, Rwandas President, Mr. Paul
Kagame stressed on the need to have a compre-
hensive strategy on Africas development chal-
lenges. He agreed with Indias view to reform In-
ternational financial institutions. He urged the
African business community to utilize financial
support for effective strengthening of economic
relations. Commerce Minister Kamal Nath also
expressed his hope that India will come out of the
global financial meltdown unharmed and will con-
tinue growing. He said the inflow of the Foreign
Direct Investments (FDI) is satisfactory and it is
expected to cross 30 billion dollars this year.
The business partnership conference includes
more than 250 delegates and 30 African countries,
which has been jointly organized by the Ministry
of Commerce and Industry and the Federation of
Indian Chambers and Commerce and Industry
(FICCI).
105
 Section -6 (IAS Mains Special : ECONOMY)
Pan-African E-Network Project
One more significant and shining chapter in the
history of India-Africa relationship was added,
when the Pan-African e-Network Project was
inaugurated on 26th Feb 2009 by Hon'ble Shri
Pranab Mukherjee, External Affairs Minister at
the TCIL Bhawan in New Delhi, amidst the pres-
ence of High Commissioners and Ambassadors of
African countries.
With the commissioning of the Pan-African e-
Network Project, former president Dr. A P J Abdul
Kalam vision of connecting India with all 53 coun-
tries of the African Union with a satellite and fi-
bre optic network for sharing India's expertise in
education and health care, has been translated into
reality.
Describing the Pan-African e-Network Project as
a shining example of South-South Cooperation,
the External Affairs Minister Shri Pranab
Mukherjee said that under this project India has
gifted a dedicated satellite hub for e-connectivity
in Africa to help bridge the digital divide. The
Project aims to create significant linkages for tele-
education and tele-medicine, making available the
facilities and expertise of some of the best univer-
sities and super-specialty hospitals in India to the
people of Africa. The Minister added that the
project is also equipped to support e-governance,
e-commerce, infotainment, resource mapping and
meteorological and other services in the African
countries, besides providing VVIP connectivity
among the Heads of State of the African countries
through a highly secure closed satellite network.
He said that thirty three countries have already
joined this Project and more are expected to join
in the course of the coming months. Eleven coun-
tries have been covered in the first phase where
both the Learning Centres for tele-education and
Patient-end Hospitals for tele-medicine are ready.
These include: Benin, Burkina Faso, Gabon, The
Gambia, Ghana, Ethiopia, Mauritius, Nigeria,
Rwanda, Senegal and Seychelles.
The External Affairs Minister assured that nine
more countries namely Botswana, Burundi,
Copyright © 2009 | WWW.UPSCPORTAL.COM
Cameroon, Djibouti, Egypt, Malawi, Mozambique,
Niger and Uganda would be covered in the sec-
ond phase by March 2009. Another nine coun-
tries, namely Comoros, Cote Dvoire, Democratic
Republic of Congo, Eritrea, Sierra Leone, Soma-
lia, Tanzania, Togo and Zambia, would be cov-
ered by the network as part of Phase-III by 30th
June 2009.
The Pan-African e-Network Project was approved
by the Union Cabinet on 5th July 2007 at a bud-
geted cost of Rs. 542.90 crores which covers the
cost of supply, installation, testing and commis-
sioning of hardware and software, end-to-end
connectivity, satellite bandwidth, O&M support,
and providing the tele-education and tele-medi-
cine services to 53 African countries for 5 years.
The Ministry of External Affairs is the nodal min-
istry for the project while Telecommunications
Consultants India Limited (TCIL) is implement-
ing the project on a turnkey basis.
The Project aims at providing tele-education ser-
vices to 10,000 African students to undertake Post-
Graduate, Under-Graduate, PG Diploma and Di-
ploma and skill enabling certification courses in
subjects such as Business Administration, IT, In-
ternational Business, Tourism and Finance. The
following seven leading universities and educa-
tional institutions of India have been associated
with the Project: Amity University, Noida; Uni-
versity of Madras, Chennai; Indira Gandhi Na-
tional Open University (IGNOU), New Delhi; Birla
Institute of Technology and Science (BITS), Pilani;
University of Delhi; IIT Kanpur and Indian Insti-
tute of Science (IISc.) Benguluru.
As part of the tele-medicine services, online medi-
cal consultation will be provided for one hour ev-
ery day to each participating African country for
a period of 5 years in various medical disciplines
such as cardiology, neurology, urology, pathology,
oncology, gynecology, infectious diseases/HIV-
AIDS, ophthalmology, pediatrics etc. Twelve lead-
ing Indian Super Specialty Hospitals have been
associated with the Project. These are: Apollo
Hospital and Sri Ram Chandra Medical College
and Research Institute in Chennai; AIIMS, Escorts
106
 Section -6 (IAS Mains Special : ECONOMY)
Heart Institute and Moolchand Hospital in New
Delhi, Fortis Hospital in Noida, KEM Hospital in
Mumbai, Care Hospital in Hyderabad, Amrita In-
stitute of Medical Sciences, Kochi; Manipal Hos-
pital and Narayan Hrudayaylaya, Benguluru and
Santosh Hospital, Ghaziabad. With the com-
mencement of the tele-medicine services, some
of the best medical specialists of India would be
available for consultations online for the African
patients.
Another important element of tele-medicine ser-
vices is the Continuing Medical Education (CME)
in various specialties which is intended to update
the knowledge and upgrade the clinical skills of
the practicing physicians and paramedical staff in
the African countries. TCIL has established the
network with a data centre in TCIL Bhawan,
which acts as a gateway to the hub station in Dakar
for connectivity of Indian institutions to the Af-
rican sites.
Preferential Trade Agreement (PTA) with SACU
South Africa, Lesotho, Swaziland, Botswana and
Namibia have formed the South Africa Customs
Union (SACU) with a common Custom Tariff
Policy. A Joint Working Group (JWG) consisting
of Government representatives from both sides
was set up to examine the proposal to prepare a
draft. Frame Work Treaty for the Preferential
Trade Agreement (PTA) between India and SACU
countries. In a meeting of JWG held in Namibia
on 6th-7th September 2004, the draft Framework
Agreement was finalized. In the sixth session of
the India-South Africa Joint Ministerial Commis-
sion Meeting held in New Delhi on 5-6 Dec. 2005,
both sides agreed that a comprehensive Free Trade
Agreement within a reasonable time, and in the
interim, a limited scope agreement providing for
exchange of tariff concession on select list of prod-
ucts between India and SACU, would give fur-
ther impetus to bilateral trade.
India and Southern African Custom Union (SACU)
commenced negotiations for Preferential Trade
Agreement (PTA) at Pretoria, South Africa on 5th-
6th October, 2007. The 2nd round for PTA with
SACU was held at Walvis Bay, Namibia on 21st-
22nd February, 2008.
Copyright © 2009 | WWW.UPSCPORTAL.COM
CECPA with Mauritius
During the visit of PM of India to Mauritius from
March 30-April 2, 2005 both the countries agreed
for a Comprehensive Economic Cooperation and
Partnership Agreement (CECPA) to boost bilat-
eral trade, investment and general economic co-
operation. Accordingly an Empowered Negotia-
tion Team consisting of representatives from both
the sides for working out the necessary modali-
ties were constituted. Seven Round of talks on
CECPA have been held so far. The 7th round of
talks was recently held in New Delhi on the 7th
July 2006. During the visit of the Prime Minister
of Mauritius to India in October 2005 the follow-
ing bilateral agreements/MoUs were signed be-
tween two countries :
i. Mutual Legal Assistance Treaty in Criminal
Matters;
ii. Agreement on the Transfer of Sentenced Per-
sons;
iii. MoU for cooperation in the field of Hydrogra-
phy;
iv. MoU for Harmonisation of Standards between
concerned agencies;
160 India 2009
v. MoU for Cooperation on Consumer Protection
and Legal Metrology;
vi. MoU between Indian Institute of Public Ad-
ministration (IIPA) and Government
of Mauritius;
vii. MoU on Preferential Trade Agreement.
Joint Trade Committee (JTC) meeting
with Ethiopia
The Joint Trade Committee (JTC) meting is an
institutional arrangement under the aegis of Trade
Agreement to review the implementation of Trade
Agreement and to identify bottlenecks is promot-
ing trade between the countries. The 4th JTC
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 Section -6 (IAS Mains Special : ECONOMY)
meeting with Ethiopia was held on 5th June 2006
at New Delhi. Sh. Jairam Ramesh, Hon'ble Minis-
ter of State for Commerce, Govt. of India and the
H.E. Mr Ahmed Tusa, State Minister of Trade and
Industry, Govt. of Ethiopia co-charied this JTC
meeting.
Social Security Agreement to Enhance
Cooperation
India and Switzerland signed a Social Security
Agreement on September 03, 2009 in New Delhi,
in presence of theVice-President of the Swiss Con-
federation and Minister of Economic Affairs, Ms.
Doris Leuthard. The Agreement was signed by
Shri. K.Mohandas, Secretary of Overseas Indian
Affairs Ministry and Mr. PhilippeWelti, Ambas-
sador of the Swiss Confederation in India. On the
occasion, Shri. Mohandas said that this is an im-
portant agreement, which will further boost the
friendly relationship between the two countries.
This Social Security Agreement will enhance co-
operation on social security between the two
countries. It will facilitate the movement of pro-
fessionals between the two countries. The de-
tached workers sent by Switzerland- based com-
panies to their Indian subsidiaries, or those sent
by Indian companies to their branches in Swit-
zerland will be exempt from social security con-
tribution in the host country for a period of 72
months. While working abroad, these employees
will only be subject to the social security regula-
tions of their home country. The Agreement pro-
vides that an employed or selfemployed person,
other than detached workers shall be subject only
to the legislation of the host country.
The Agreement provides for refund of the contri-
butions at the time of relocation. In so far as Swit-
zerland is concerned, the person will be refunded
the contributions in accordance with the Swiss
legislation. In so far as India is concerned, the per-
son will be paid the withdrawal benefit or the
pension in Switzerland or a third country, as the
case may be, in accordance with the Indian legis-
lation at the time of relocation. The Agreement
will come into effect after the fulfillment of the
national requirements. There are over 11,000 In-
Copyright © 2009 | WWW.UPSCPORTAL.COM
dians in Switzerland and there are over 800 Swiss
nationals working in India. There is potential for
greater movement of workers between the two
countries in future. This bilateral Social Security
Agreement will enhance trade and investment
between the two countries. India has signed simi-
lar agreements with Belgium, France and Germany
in the recent past.
Economic Scenario
Switzerland and India continue to be natural part-
ners constantly working together to strengthen
their relationship in various fields. In the recent
years, economic relations between the two coun-
tries have been hoisted to a higher level of impor-
tance. This is reflected in the pace at which our
total bilateral trade has increased from Swiss
Francs 1.16 billion in 2002 to Swiss Francs 2.62
billion in 2006, reflecting an increase of 125 per
cent in four years. This positive trend in the last
years is set to continue: In the first eleven months
of 2007, Swiss exports to India have gone up by
30 per cent whilst Indian exports to Switzerland
have increased by 25 per cent, as compared to the
same period of the previous year.
In terms of foreign direct investments, Switzer-
land has remained amongst the top 10 foreign in-
vestors in India. About 150 Swiss companies have
formed joint ventures or subsidiaries, and many
more have representatives or agents in India. The
Swiss technology-driven companies, including
small and medium businesses, play a major role in
the trade and investment flows to India. As more
and more Indian companies are now venturing
abroad, Switzerland is offering many attractive
advantages as a business and investment location,
especially for those Indian companies which
would like to cover their European business ac-
tivities from within Switzerland.
The Swiss Business Hub India (SBHI) which is part
of Osec Business Network Switzerland and which
is located in the Consulate General in Mumbai and
the Swiss Embassy in New Delhi offers a wide
range of services to assist small and medium-sized
enterprises (SMEs) from Switzerland and
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 Section -6 (IAS Mains Special : ECONOMY)
Liechtenstein in their efforts to penetrate the In-
dian market.
The Swiss-Indian Chamber of Commerce (SICC)
is a key actor in promoting Swiss-Indian bilateral
trade and investment. SICC is a bi-national, non-
profit association with over 320 Swiss and Indian
members. It has offices in Zurich, Delhi, Banga-
lore, Mumbai and Chennai. The Chamber provides
members in Switzerland and India access to first-
hand information and expertise thanks to the res-
ervoir of know-how offered by its board and ex-
tensive partner network in both countries.
Recent years have also seen exchange of high-level
visits, and intensification of the dialogue between
the two governments to ensure that together they
can explore new ways and means to further
strengthen the trade and investment ties. Nota-
bly, India has been identified as a country of high
importance in the framework of Switzerland's
Foreign Economic Strategy. The EFTA countries
(Iceland, Liechtenstein, Norway and Switzerland)
and India will soon launch negotiations for a
broad-based agreement on trade and investment.
The Indo-Swiss joint economic commission meet-
ing that used to be held every four years will now
be held every year.
The instruments mentioned above and our bilat-
eral agreements on the Double Taxation Avoid-
ance, Promotion and Protection of Investments
and an MOU on Intellectual Property Rights, will
ensure that an increasing number of Swiss and
Indian companies will find a shared interest in
doing business together. The future looks very
bright, and both sides are continuing their efforts
to deepen and widen the bilateral trade and eco-
nomic ties.
India will Get the Equivalent of About
$4.78 Billion
India will get the equivalent of about $4.78 bil-
lion as its share of International Monetary Fund's
(IMF) Special Drawing Rights (SDR) worth $250
billion to provide liquidity to the recession hit glo-
bal economic system.
Copyright © 2009 | WWW.UPSCPORTAL.COM
IMF will make the general SDR allocation on Aug
28 following formal approval by its board of gov-
ernors last week of the proposal to allocate SDRs
equivalent to $250 billion to provide liquidity to
the global economic system by supplementing the
Fund's member countries' foreign exchange re-
serves.
The SDR allocation was requested as part of a $1.1
trillion plan agreed at the G20 summit in London
in April and endorsed by the International Mon-
etary and Financial Committee (IMFC) to tackle
the global financial and economic crisis by restor-
ing credit, growth and jobs in the world economy.
The equivalent of nearly $100 billion of the gen-
eral allocation will go to emerging markets and
developing countries, of which low-income coun-
tries will receive over $18 billion, IMF said Thurs-
day.
The allocation will provide each participating
country with SDRs in amounts equivalent to ap-
proximately 74 percent of its quota, and could in-
crease Fund members' total allocations to an
amount equivalent to about $283 billion, from
about $33 billion (SDR 21.4 billion).
Separately, the fourth amendment to the IMF ar-
ticles of agreement providing for a special one-
time allocation of SDRs has now entered into force.
The special allocation will be made to IMF mem-
bers on Sep 9, 30 days after the effective date of
the fourth amendment, and will raise the ratios
of members' cumulative SDR allocations to quota
using a common benchmark ratio as described in
the amendment.
The total of SDRs created under the special allo-
cation would amount to SDR 21.5 billion (about
$33 billion).
The special allocation will make the allocation of
SDRs more equitable and correct for the fact that
countries that joined the Fund after 1981 -- more
than one fifth of the current IMF membership --
had never received an SDR allocation, IMF said.
The fourth amendment, which was proposed in
September 1997, required approval by three fifths
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 Section -6 (IAS Mains Special : ECONOMY)
of the IMF membership with 85 percent of the
total voting power. This threshold has been
reached following the recent approval by the US.
The special and general allocations will bring Fund
members' cumulative total of SDR allocation to
SDR 204 billion (about $316 billion).
The general SDR allocation is a key example of a
cooperative multilateral response to the global
crisis, offering significant support to the Fund's
members in this challenging period, IMF said.
India-Singapore ink pact on tourism
On August 4, 2009, India and Singapore signed a
joint action plan on tourism cooperation. Minis-
ter of Tourism Kumari Selja and Singapore Senior
Minister of State for Trade and Industry and Edu-
cation S. Iswaran witnessed the signing by tour-
ism officials of India and Singapore. The plan re-
iterates provisions of cooperation enshrined in the
bilateral agreement on tourism signed between
India and Singapore on January 24, 1994.
India-US Economic Partnership
The growing economic partnership between the
US and India has been one of the pillars of the
transformed bilateral relationship. The USA hap-
pens to be India’s largest export destination and
also one of the leading foreign investors in India.
The complementarities between the two econo-
mies have made the two sides to seek a strong eco-
nomic engagement to leverage the advantages
available with each other.
Bilateral Trade and Investment: The India-US
bilateral trade stood at US$ 33.9* billion in 2007-
08.During the year 2007-08, merchandise exports
from India to US increased by 9.81% to US$20.7
billion as compared to US$ 18.8 billion in 2006-
07 and merchandise exports from US to India in-
creased by 12.57% to US $ 13.2 billion in 2007-08
as compared to US$11.7 billion in 2006-07.
Indian IT and IT enabled services including R&D
and Engineering services exports to the US were
approximately US$ 24 billion in 2007. The total
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FDI equity inflow to India from the US during
the period April 2000- June 2008 was US$ 5.4 bil-
lion. Trade and economic cooperation has emerged
as an important pillar of India-US relations – evi-
dent in the rising bilateral trade volume and an
enhanced interest to strengthen this trend.
India is one of the faster growing export destina-
tion for US exports. In 2007, the growth rate was
75%. It has slowed down in the first six months
of the current year but is still a healthy 26%. Our
main imports from the U.S. are aircraft and avia-
tion machinery, other machinery, precious stones
and metals, organic chemicals, optical and medi-
cal instruments. In 2008, export of fertilizers from
the US has increased significantly.
India’s exports to United States, though still sig-
nificantly larger than our imports, are growing at
a much slower pace. India’s major export prod-
ucts include gems and jewelry, textiles, organic
chemicals and engineering goods. The rise in the
value of rupee, hike in transport costs, competi-
tion from Bangladesh, Vietnam as well as some
Latin American countries that have some duty
advantages in textiles and apparel sector and the
continuous bonding requirement imposed on
shrimps since 2004 are the major factors contrib-
uting to the decline.
US-bound investment from India has increased
significantly since 2002, growing by about 75%
on average per year. The value in 2006 is estimated
to be about $2 billion and in 2007, the increase
has been very rapid with announced Indian in-
vestments in US estimated at about $13 billion.
The trend seems set to continue in 2008 with deals
reported upto May 31 totalling more than $ 8 bil-
lion.
Trade Missions and Business Events
» High level trade Missions led by the Governor
of Minnesota and the Governor of Utah
visited India in Sept-Oct 2007.
» An Infrastructure Summit was organized by the
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 Section -6 (IAS Mains Special : ECONOMY)
CEOs forum in Mumbai in Oct 2007.
» Launch of Initiative- "Investing in America: The
Indian Story"
» September 2007 – New York, USA by FICCI-
US India Business Council (USIBC)with
support of Ministry of Commerce and Industry,
Government of India
» An Indo-US SME Summit: Leveraging Global
Supply Chains and Integrating the SME
Community was held in Chicago in February 2008.
» An Indo-US Biopharma Summit was organized
in Boston in June 2008.
» A US pharma and medical devices delegation
visited Indian in September 2008.
» A renewable energy delegation from the USA
led by Mr. David Bohigan, Deputy Assistant Sec-
retary, and Department of Commerce visited In-
dia in January 2008 and in September 2008.
India as the most promising overseas
investment destination for Japan
Japan is currently India’s third largest source of
foreign direct investment; Japanese companies
have made cumulative investments of around $2.6
billion in India since 1991. The 2007 annual sur-
vey conducted by the Japan Bank for International
Cooperation ranked India as the most promising
overseas investment destination for Japanese com-
panies over the long term. In recent years, Japan
has assisted India in infrastructure development
projects such as the Delhi Metro Rail Project. Both
sides are also discussing the Delhi-Mumbai Indus-
trial Corridor Project and Dedicated Freight Cor-
ridor Projects on the Mumbai-Delhi and the
Delhi-Howrah routes.
In October 2008, Japan signed an agreement with
India under which it would provide the latter a
low-interest loan worth US$4.5 billion to con-
Copyright © 2009 | WWW.UPSCPORTAL.COM
struct a railway project between Delhi and
Mumbai. This is the single largest overseas project
being financed by Japan and reflect ed growing
economic partnership between the two. India is
also one of the only three countries in the world
with whom Japan has security pact, the other two
being Australia and the United States.As of March
2006, Japan was the third largest investor in India
with an estimated total investment of US$2.12
billion.
Brazil–India trade in 2007 nearly
tripled to US$ 3.12 billion
Brazil and India are large continental sized coun-
tries with social diversity, democratic govern-
ments, a multiethnic society, and a large popula-
tion base. Both possess advanced technologies. The
two countries share similar perceptions on issues
of interest to developing countries and have co-
operated in the multilateral level on issues such
as international trade and development, environ-
ment, reformof the UN and the UNSC expansion.
In recent years, relations between Brazil and In-
dia have grown considerably and co-operation
between the two countries has been extended to
such diverse areas as science and technology, phar-
maceuticals and space. The two way trade in 2007
nearly tripled to US$ 3.12 billion from US$ 1.2
billion in 2004. Global software giant, Wipro Tech-
nologies, also set up a business process outsourcing
centre in Curitiba to provide shared services to
AmBev, the largest brewery in Latin America.
Britain lifts ban on N-exports to India
On November 10, 2008, Britain announced the
lifting of a ban on exporting sensitive nuclear tech-
nology to India for civilian projects giving mo-
mentum to resumption of global atomic coopera-
tion with New Delhi after the end of its over three-
decade nuclear apartheid. The change in the po-
sition of the British government, a strong sup-
porter of the Indo-US nuke deal, followed the
Nuclear Suppliers Group (NSG) waiver in Septem-
ber 2008, that brought India back into the nuclear
mainstream.
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 Section -6 (IAS Mains Special : ECONOMY)
Bilateral Trade
Britain imports most of its tea from India, and
there are a number of words of Indian origin in
the English language. The UK has an ethnic In-
dian population of over 1 million. Both countries
are full members of the Commonwealth of Na-
tions.
India is the second largest foreign investor in the
UK after the USA, and the UK is also a significant
investor in India. There are many bi -lateral trade
agreements between the two nations designed to
strengthen ties. For example, in 2005, the Joint
Economic and Trade Committee (JETCO) was in-
augurated in New Delhi aimed at boosting two-
way bilateral investments.
India–Russia Economic Relations
Bilateral trade turnover is modest and stood at US
$ 3 bn in 2006-07, out of which Indian Exports to
Russia were valued at US $ 908mn. Main Indian
exports to Russia are pharmaceuticals; tea, coffee
& spices; apparel & clothing; edible preparations;
and engineering goods. Main Indian imports from
Russia are iron and steel; fertilizers; non-ferrous
metals; paper products; coal, coke& briquettes;
cereals; and rubber. Indo-Russian trade is expected
to reach US$10 billion by 2010.
The India-Russia Inter-Governmental Commis-
sion on Trade, Economic, Scientific, Technologi-
cal and Cultural Cooperation (IRIGC) has had 13
sessions so far and is co-chaired by the External
Affairs Minister from the Indian side and a Deputy
Prime Minister from the Russian side. There are
six Joint Working Groups under the IRIGC,
namely, WG on Trade and Economy, WG on En-
ergy, WG on Metallurgy and Mining, WG on Sci-
ence & Technology; WG on Communication and
Information Technology; and WG on Culture and
Tourism. The 13th of the IRIGC was held in Mos-
cow on 12 October 2007. The two countries have
set-up India-Russia Forum on Trade and Invest-
ment at the level of the two Commerce Ministers
to promote trade, investment and economic co-
Copyright © 2009 | WWW.UPSCPORTAL.COM
operation. The first Forum was held in New Delhi
on 12-13 February 2007 which was attended by
the Minister of Commerce and Industry and the
Russian Minister of Economic Development and
Trade, apart from a large number of business rep-
resentatives from both sides. The Minister of Com-
merce& Industry, Shri Kamal Nath participated
in the 11th Saint Petersburg International Eco-
nomic Forum on 9-10 June 2007. In February 2006,
India and Russia also set-up a Joint Study Group
to examine ways to increase trade to US $ 10 bn
by 2010 and to study feasibility of a Comprehen-
sive Economic Cooperation Agreement (CECA).
The Group finalized its report after its fourth
meeting in Moscow in July 2007. It has been
agreed that a Joint Task Force would monitor the
implementation of the recommendation made in
the Joint Study Group Report, including consid-
ering CECA.
Ministerial meeting of the
World Trade Organisation
The ministerial meeting of the World Trade
Organisation (WTO) in New Delhi has broken the
impasse and the Doha trade talks will resume in
Geneva on September 14. Even as the 2010 dead-
line remains a stretch, trade ministers re-affirmed
the need for development oriented talks.WTO
members' chief negotiators will meet in Geneva
from September 14, in the run-up to the Pitts-
burgh G20 summit, to grapple with outstanding
issues in the talks, now in their eighth year, with
the aim of completing the round by 2010.
Political leaders have called repeatedly in recent
months to conclude the Doha round, launched in
2001 to help developing countries grow by open-
ing trade, to help pull the world out of the eco-
nomic crisis and fight protectionism.
The Delhi meeting did not look at any of the spe-
cific issues that remain open, such as a safeguard
to help farmers in poor countries cope with a flood
of imports, or proposals to eliminate duties en-
tirely in some industrial sectors.That will be up to
the negotiators, but India expressed confidence
that such issues could be resolved around the ne-
gotiating table if countries were willing.The talks
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 Section -6 (IAS Mains Special : ECONOMY)
will resume on the basis of the draft negotiating
texts issued in December 2008.
That should provide comfort to WTO members
from Brazil to the European Union who had feared
that the United States wanted to unpick what has
already been agreed over the past seven years,
jeopardizing the emerging deal.Ministers also re-
iterated that the talks had to be multilateral, since
any deal must be signed off by all 153 WTO mem-
bers.
Agreement in the Fields of Small-Scale
Industries
India and the West African nation of Benin signed
five agreements on march 4,2009 in the fields of
small-scale industries, cultural and scientific co-
operation and diplomatic exchange. The agree-
ments were signed after delegation level talks
headed by the Prime Minister Dr Manmohan
Singh and the visiting President of Benin, Boni
Yayi.
New Delhi also offered Benin a liberalised line of
credit for its developmental needs.
Earlier, Yayi was accorded a ceremonial reception
at the Rashtrapati Bhawan.
Talking to media, Yayi extended his support to
India in the fight against terrorism. He also
favoured New Delhi’s inclusion in the reformed
United Nations Security Council to have a demo-
cratic world order.
Yayi is scheduled to meet President Pratibha Patil,
Vice President Hamid Ansari and the leader of
the Opposition in Lok Sabha L K Advani.
During his five-day visit to India, he will also visit
Agra, Mumbai and Bangalore.
Wednesday’s engagement was Dr. Singh first of-
ficial one after undergoing by pass surgery five
weeks ago. Dr. Singh underwent a ”redo” coro-
nary artery bypass surgery to remove five block-
ages in his heart at the All India Institute of Medi-
Copyright © 2009 | WWW.UPSCPORTAL.COM
cal Sciences (AIIMS) on January 24, and has since
been recuperating.
Fact Sheet
Name and capital: Republic of Benin,
Porto Novo (Administrative Capital) Cotonou (site
of most of the Administration and Ministries, eco-
nomic capital)
Population: 7.1 million (2005)
Languages Spoken: French (official), Fon, Ge,
Bariba, Yoruba, Dendi
Significant Economic A ctivities: Benin’s
economy is chiefly based on agriculture with cot-
ton accounting for 40% of GDP and about 80% of
export receipts. Other products include cashew,
palm oil, high quality marble limestone and tim-
ber.
Cotonou port is a major transit market for many
West and Central African countries.
Global Trade and Investment
India is among the biggest export markets (cotton
and cashews) while China is the main source of
imports.
Total imports with major exporting countries:
US$ 866 million (2004) China, France, UK, Thai-
land, Belgium, India
Total exports with major destinations of exports:
US$ 670.9 million (2004) India, China, Thailand,
Indonesia, Italy
ASSOCHAM –KCCI set up Groups to
Promote Bilateral Trade
Welcoming the resumption of talks between In-
dia-Pakistan, The Associated Chambers of Com-
merce & Industry of India (ASSOCHAM) and its
counterpart Karachi Chamber of Commerce &
Industry (KCCI) have set up Special groups in re-
spective countries to strengthen institutional links
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 Section -6 (IAS Mains Special : ECONOMY)
for formulating concrete action plan to boost bi-
lateral trade.
The Chamber has already been invited by KCCI,
Pakistan for holding business-to-business initia-
tives and a small group comprising its SAARC
Committee Chairman Mr. Ravi Wig and Secre-
tary General D.S. Rawat are scheduled to visit
shortly to carry on negotiations further.
Sajjan Jindal, President, ASSOCHAM said, “the
Chamber strongly believes that relations between
the two neighbours must improve and beginning
has to be made – both countries cannot afford to
continue to carry past baggage at the cost of their
mutual growth and well being”.
In the past, ASSOCHAM has been participating
in Pakistan’s trade fair in Karachi every year,
hosting Pakistani business delegations, undertak-
ing special market survey and business studies on
Indo-Pakistan trade ties and in March hosted
former Pakistani President Pervez Musharraf dur-
ing his visit to India.
The proposed roadmap of ASSOCHAM–KCCI
Group contains:
i. Creation of a dedicated freight transshipment
facility along with the land route through Wagah
border – at present passenger traffic and freight
traffic is handled at single terminal leading to
delays for goods traffic.
ii. Reduce overheads and delivery period to cre-
ate attractive possibilities and incentives for the
businesses on both sides to trade in many non-
traditional items.
iii. People-to-people contacts need to be facili-
tated which may create conditions of cordiality
and goodwill in the first instance leading ulti-
mately to more trading opportunities.
iv. Advocate relaxation in travel restrictions, more
for bona fide travelers
v. Increase frequency of train and bus services
vi. Explore possibility for more patients from Pa-
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kistan for specialized treatment in India under a
new scheme
vii. Draw a new scheme of scholarship to fixed
number of Pakistani students and researchers for
higher courses, with minimum one-year duration.
viii. Allow more cultural groups from Pakistan :
literary figures, musicians ghazal singers.
Concrete Items identified by ASSOCHAM &
KCCI are :
1. India could source commodity supplies, Sugar
being prime item. Pakistan wheat cold be explored
in view of apprehended shortage of same in India
this year.
2. Tea : (Pakistani annual demand of 140 million
kg can be better met from India – current tea ex-
ports from India only 5 million kg).
3. Medicines : India products most competitive
in Pakistan.
4. Gems and Jewellery : Pakistani businessmen
are keen to source these items from India, cur-
rently being done via Dubai.
5. Indian Nano and other models would be very
good buy for average Pakistani customers in terms
of (a). price (b) quality (c) after-sales-service.
6. Joint venture proposal could be submitted for
assembly and manufacture of such vehicles in Pa-
kistan.
7. From Pakistan : Apart from Sugar, cement
wheat, dryfruits which are traditionally-identi-
fied items for exports to India, ASSOCHAM feels
that footwear, leather products, sports goods, plas-
tic wares could also be sourced from Pakistan.
8. New areas of cooperation could include Educa-
tion The educational institutions should enter into
mutually beneficial tie-ups as Indian institutions
are doing with several institutions abroad.
9. There should be common understanding on is-
sues like Environment, especially when it comes
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to protecting our interests in international fora and
multilateral negotiations.
According to Chamber, Indo-Pak trade during last
four years (2004-05,2005-06, 2006-07 and 2007-
08) record growth of 74% , 39%, 97% and 19%
respectively and the total volume reached $ 2 bil-
lion in 2008 and therefore, tremendous potential
yet to be tapped. ASSOCHAM study (2008) pre-
dicted 40-50% rise in bilateral trade as possible
target.
Presently, more than 25% of total Pakistani im-
ports of Indian origin goods take place through
Dubai and Singapore. Facilitating direct trade
would be mutually beneficial to both sides, and
the trade level would jump dramatically.
India-France agreed to liberalise visa
regime
The Prime Minister of India Dr. Manmohan Singh
and President Nicolas Sarkozy held a bilateral sum-
mit in Paris on September 30, 2008 at which they
reaffirmed the importance attached by both coun-
tries to their strategic partnership and their com-
mitment to further strenghthening bilateral co-
operation in a wide range of areas. Both sides re-
iterated their intention to keep up the momen-
tum of regular high level exchanges.
India and France agreed on the need for greater
international cooperation to deal with challenges
facing mankind. Both countries are committed to
international peace and security, nuclear non-pro-
liferation, the fight against terrorism and the need
to ensure food security and energy for all coun-
tries.
Both countries recognised the need to promote
the development of stable sustainable, efficient and
affordable energy sources, including nuclear en-
ergy. In this context, they welcomed the agree-
ments adjusting the international civil nuclear
cooperation framework to enable collaborations
with India. India and France welcome the signa-
ture of a bilateral agreement for civil nuclear co-
operation, which will form the basis of wide-rang-
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ing bilateral collaborations in energy and research.
India appreciates French support for permanent
membership of India in the UN Security Council.
Alongwith other developing countries India is
committed to continue dialogue and collaboration
with the G8. France also believes the G-8 needs
to be expanded over time to G-13 including In-
dia. India and France agree on the need for im-
proved global economic governance to ensure that
globalization and interdependence work for the
benefit of all.
Both countries are fully committed to consolidat-
ing their relationship in the field of defence by
increasing the range, level and frequency of their
military exchanges, joint exercises, joint
programmes and prospects in the fields of defence
industry, research and technology.
This commitment is well evidenced between the
two countries by the possibility of joint develop-
ment, as early as feasible, of Short Range Surface-
to-Air Missiles (SRSAM) and of the Kaveri engine
for Light Combat Aircraft. Discussions concern-
ing the upgradation of Mirage-2000 aircraft are
also well under way and are expected to be
finalised by next year.
Bilateral trade to reach 12 billion Euros by 2012
In accordance with the commitment agreed upon
by the two countries during President Nicolas
Sarkozy’s State visit to India in January 2008, to
double bilateral trade to reach 12 billion Euros by
2012, both sides will make sustained efforts in this
vital area of bilateral cooperation. Small, medium
and micro enterprises of both countries need to
be further encouraged to increase their coopera-
tion. The two sides also agreed to further liberalise
their visa regime to facilitate issuance of visas for
business purposes, particularly concerning stu-
dents and young people working as trainee or as
volunteer in French companies and for people-
to-people contacts. An agreement on Social Secu-
rity for the benefit of business enterprises and
professionals of the two countries has been con-
cluded. This constitutes an important step forward
in facilitating two way investments. The two sides
welcome the creation of the High Level CEOs
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 Section -6 (IAS Mains Special : ECONOMY)
Forum which would have its first meeting by the
end of the year.
The two countries have agreed to hold dialogue
on environmental issues and have set up a joint
working group on climate change and technology
transfers and their financing. The group should
hold its first meeting by the end of the year.
Following the agreement of 25 January 2008 es-
tablishing the Agence Française de
Développement (AFD - French Development
Agency) in India, both sides welcome the signa-
ture of the MoU between the AFD and the De-
partment for Economic Affairs of the Indian Min-
istry of Finance which will allow the AFD to start
its operations in India.
It was agreed to work towards concluding a visa
free agreement for diplomatic and official pass-
port holders. The Agreements and MoUs signed
reflect the wide range of bilateral interaction be-
tween India and France and will provide signifi-
cant impetus to realising the full potential of the
comprehensive strategic partnership between the
two countries.
India Week and Food Festival” in
Astana and Almaty
The Embassy of India in Kazakhstan has organized
an “India Week and Food Festival” in Astana and
Almaty from September 8 to 18,2008 in collabo-
ration with the Rixos President Hotel Astana, In-
tercontinental Hotel Almaty and Air Astana as part
of its continued efforts to promote people-to-
people contacts and strengthen bilateral relations
between India and Kazakhstan.
India’s Ambassador to Kazakhstan Ashok
Sajjanhar, Kairat Sarybai, Assistant to Kazakhstan
President Nursultan Nazarbayev and Akan
Bizhanov, Member of Parliament (Senate) ad-
dressed the gathering of about 100 specially in-
vited guests.
In his inaugural address, Ambassador Sajjanhar
informed the gathering that the week-long Food
Copyright © 2009 | WWW.UPSCPORTAL.COM
Festival in Astana and Almaty are initiatives by
the Indian Embassy to further strengthen relations
between India and Kazakhstan and increase un-
derstanding and cooperation between the two
peoples through the wonderful medium of good
food.
He underlined that this year has been eventful
and momentous in India-Kazakhstan bilateral re-
lations. Ambassador Sajjanhar expressed confi-
dence that relations between the two countries
will improve significantly as a result of these ini-
tiatives.
He also welcomed a delegation of 12 leading tour
operators from India who are presently in
Kazakhstan through the courtesy of Air Astana
to promote relations in the area of tourism be-
tween the two countries.
Kairat Sarybai underlined the importance of fur-
ther improving the growing bilateral relations
between the two countries. He fondly recounted
his visit to India with President Nazarbayev in
January 2009. Senator Akan Bizhanov underlined
the cultural relations between India and
Kazakhstan.
A graceful Odissi dance performance by Ms.
Nurgul Amirbekova, a Kazakhstani artiste who
studied Indian classical dance in Delhi for three
years under scholarship from the ICCR added
colour and splendour to the event.
The Embassy also displayed Indian Objects d’Arts,
tourist information materials, and Indian books
including recipe books at the venue. After the
conclusion of the official function the guests were
treated to a variety of exotic Indian food delica-
cies.
The Embassy has invited a team of four leading
chefs headed by Mr. Marut Sikka to organize the
Indian Food Festival in Kazakhstan. They will be
delighting gourmands and connoisseurs of authen-
tic Indian delicacies during the five-day long Food
Festival, both in Astana and Almaty. The inaugu-
ral event was widely covered in the Kazakh me-
dia.
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 Section -6 (IAS Mains Special : ECONOMY)
The inauguration of India Week and Indian Food
Festival in Almaty will be held on September 14
at Intercontinental Hotel and will last till Septem-
ber 18.
India Expo-2009 in Kazakhstan
Business ties between India and Kazakhstan are
set to receive a further fillip with captains and
representatives of Indian industry took part in
three international business expos in Astana and
Almaty which held on May 21-23, 2009. The pur-
pose of India Expo-2009 was to demonstrate India’s
industry and seek long-term private-to-private
cooperation. The India Trade Promotion
Organisation and the Indian Embassy in
Kazakhstan has organised the event.
Small and medium businesses representing differ-
ent sectors - energy, oil and gas, nuclear industry,
auto-industry, IT-technologies, pharmacy, jew-
elry, agriculture, metallurgical and steel-making
will showcase their products and conducts meet-
ing with their potential Kazakh partners.
Cooperation between India and Kazakhstan has
intensified over the years. Bilateral trade turnover
has risen from 120 million dollars in 2005 to 368
million dollars in 2008.
Kazakh President Nursultan Nazarbayev visit to
India in January 2009 has given a fresh impetus to
bilateral relations in political and commercial
spheres.
Recent Developments
A fresh impetus to bilateral trade and commercial
relations has been given as a result of the visit of
President Nazarbayev to India in January 2009.
An agreement between ONGC Videsh Ltd. and
KazMunaiGaz on Satpayev oil block and MoU
between NPCIL and Kazatomprom envisaging
cooperation including supply of uranium to India
among others was signed during the visit. A
memorandum of understanding for cooperation
in the field of Space; extradition treaty between
Copyright © 2009 | WWW.UPSCPORTAL.COM
both countries and the protocol on the accession
of Kazakhstan to WTO was also signed during the
visit. In the joint declaration adopted during the
visit both sides agreed that the trade volume be-
tween the two countries is far below potential and
urged that the Governments and business enter-
prises of the two countries should address the is-
sue. Both sides also recommended a joint study
by designated agencies to identify products and
projects, which would deepen economic engage-
ment.
Diversification of the areas of cooperation in the
fields of Health and Medicine, space activities,
Information Technology and Education was also
discussed during the visit. A large business del-
egation accompanied the President representing
various spheres and discussions between Indian
counterparts were held extensively. This was fol-
lowed by a visit of MoS(Industry) Dr. Ashwani
Kumar to Astana with a Business delegation and
the visit of Sh. Murli Deora, MoPNG for the 7th
IGC meeting both in March 2009. Discussions are
currently underway for cooperation in fields of
fertilizers production, setting up of petrochemi-
cal complex, thermal power plants, Entrepreneur-
ship Development center etc. Agreements in the
fields of Agriculture, Health, Culture, S & T, and
Education etc are currently under consideration
by both sides.
India-Bahrain pact to protect workers
India and Bahrain have inked a key agreement to
ensure protection for Indian workers against un-
scrupulous employers. The agreement included
housemaids who were not covered by Bahrain’s
Labour Law and was signed during the visit of
Overseas Affairs minister, Vayalar Ravi in June
2009. As per the agreement, a committee will be
constituted to ensure that directives in the agree-
ment are implemented and will consist of officials
from Bahrain’s Labour Ministry and Indian Over-
seas Affairs Office. Employers who want to re-
cruit Indian workers will now have to specify the
nature of the work they will be doing and the
required professional skills. Other required details
include the duration of contract, an agreed salary
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 Section -6 (IAS Mains Special : ECONOMY)
and end-of-contract benefits, health services and
holidays.
India to get Boeing’s maritime recce
aircraft
The US administration has cleared the $2.1 bil-
lion contract for US aviation major Boeing to sup-
ply eight P-8I maritime patrol aircraft to India,
the largest American arms sale to India to date.
The deal surpasses an earlier $1 billion Lockheed
sale of six C-130J Super Hercules military trans-
port planes to the Indian Air Force (IAF). The
Indian Navy is Boeing’s first international cus-
tomer for the P-8, a long-range maritime recon-
naissance and anti-submarine warfare aircraft ca-
pable of broad area, maritime and littoral opera-
tions. The first flight test is scheduled in 2009 and
initial operational capability is slated for 2013.
Boeing will deliver the first P-8I around 2013 and
the remaining seven by 2015.
India to seek additional $5.2b from World Bank
As a contra-cyclical measure, India proposes to
seek an additional assistance of $5.2 billion from
the World Bank for recapitalisation of State-
owned commercial banks and infrastructure
projects. India, at present, receives $3.2 billion
annually from the World Bank. India also plans
to increase its share in the quotas of multilateral
development banks like the International Mon-
etary Fund and Asian Deve-lopment Bank after
major stakeholders in these institutions bring for-
ward the issue of quota review and expanding in
accordance with current realities that will give
proper representation to the emerging economies.
However, there is no proposal to commit any ad-
ditional resources towards the overall fiscal stimu-
lus of $1.1 trillion announced by the G-20 sum-
mit.
South Asia doing better due to India’s resilience
India’s economy is estimated to have grown by
7.1 per cent in 2008, providing an anchor of eco-
nomic stability in the region, concludes the Eco-
nomic and Social Survey of Asia and the Pacific
(ESCAP) 2009. It predicts 6 per cent economic
growth for India in 2009. The ESCAP notes India’s
Copyright © 2009 | WWW.UPSCPORTAL.COM
measures to improve the liqui-dity of the finan-
cial sector and its relaxed monetary policy, and
predicts that the fiscal stimulus packages offered
by the government would soften the economic
downturn and further strengthen domestic de-
mand.
Rs 10,000 crore project deal with Israel
The Union government has inked the Rs 10,000
crore project deal with Israel to develop new-gen-
eration medium range surface to air missile sys-
tems, capable of detecting and destroying hostile
aircraft and spy drones at a range of 120 km.
India, US ink $2.1 bn defence deal
The Union government has signed the biggest-
ever defence deal with US—a $2.1 billion con-
tract for eight Boeing P-8I Long-Range mari-time
Reconnaissance (LRMR) aircraft for Navy. India
will get the first P-8I towards end 2012 or early
2013, with the other seven following in a phased
manner by 2015-2016. The contract also provides
an option for India to order four to eight more
such planes. Armed with torpedoes, depth bombs
and Harpoon anti-ship missiles, the P-8I will also
be capable of anti-submarine warfare and anti-
surface warfare. They will replace the eight age-
ing and fuel-guzzling Russian Tupolev-142M tur-
boprops currently being operated by Navy.
India to attend meeting on Turkish pipeline project
India has decided to attend a trilateral meeting
along with Turkey and Israel to join a pipeline
project that may help it access crude supplies from
Central Asia and the Caspian region. The first leg
of the proposed pipeline will supply crude from
the Caspian region to Ceyhan port on Turkey’s
Mediterranean coast. After the crude reaches the
Ceyhan port, it will be transported through an
undersea pipeline to Israel from where it would
be connected to the Ellat port on the Red Sea. It is
from here that India could take crude through
tankers and avoid the choke points of Suez Canal.
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 Section -6 (IAS Mains Special : ECONOMY)
India-Oman $100-million fund for
financing multi-sector projects
On November 8, 2008, Prime Minister Manmohan
Singh left on a three-day visit to the Sultanate of
Oman and Emirate of Qatar to further boost the
bilateral ties between the countries. India and
Qatar signed two agreements on defence and se-
curity during Prime Minister Manmohan Singh’s
visit. Accelerating efforts to prop up growth as
the global slump is threatening their ascending
economic trajectory, India and Oman put together
a $100-million fund for financing multi-sector
projects in the two countries.
Australia India Institute in Melbourne
Australia has decided to provide more than 80 lakh
dollars to set up Australia India Institute in
Melbourne. A joint project of the University of
Melbourne, La Trobe University and the Univer-
sity of New South Wales, the new Institute will
help Australians to know and understand India
better.
Global Development Finance 2009:
Charting a Global Recovery
World Bank has published a report on global
economy “Global Development Finance 2009:
Charting a Global Recovery” on June 22, 2009.Ac-
cording to report amidst global economic reces-
sion and financial-market fragility, net private
capital inflows to developing countries fell to $707
billion in 2008, a sharp drop from a peak of $1.2
trillion in 2007. International capital flows are
projected to fall further in 2009, to $363 billion.
Global Development Finance 2009: Charting a
Global Recovery, warns that the world is enter-
ing an era of slower growth that will require
tighter and more effective oversight of the finan-
cial system. Developing countries are expected to
grow by only 1.2% this year, after 8.1% growth
in 2007 and 5.9% growth in 2008. When China
and India are excluded, GDP in the remaining
developing countries is projected to fall by 1.6%,
causing continued job losses and throwing more
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people into poverty. Global growth is also ex-
pected to be negative, with an expected 2.9% con-
traction of global GDP in 2009.
Global GDP growth is expected to rebound to 2%
in 2010 and 3.2% by 2011. In developing coun-
tries growth is expected to be higher, at 4.4 % in
2010 and 5.7 % in 2011, albeit subdued relative to
the robust performance prior to the current cri-
sis.
Global integration and the expanding role of pri-
vate actors in international finance have brought
huge benefits, but have also widened the scope
for turmoil. Today, developing countries rely
heavily on private flows and many countries are
being hit by a collapse in corporate finance, with
big companies and banks that were powering
growth now in distress.
The risk of balance-of-payments crises and cor-
porate debt restructurings in many countries war-
rant special attention, the report cautions.
Charting a worldwide recovery will require quick
implementation of detailed reforms and an even-
tual shift away from governments having high
stakes in the financial system to a resumption of
private sector control of the banking system, the
report says. In addition, the big expansion of the
money supply in advanced countries will need to
be unwound and fiscal deficits will need to be cut
in the medium term, to maintain debt
sustainability and avoid another debt crisis as seen
in the 1970s and 1980s.
Outlook for the Developing Regions
East Asia and Pacific The East Asia and Pacific
region has felt the full brunt of the crisis because
of its close trade links with high-income coun-
tries and because of declining investment as well
as a drop in exports and industrial production.
Growth for the region is projected to be 5% this
year, although several EAP countries are projected
to see GDP decline. Recovery across the region is
expected to begin in the second half of 2009 and
into 2010, reflecting substantial fiscal stimulus in
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China and a modest recovery of export demand in
rich countries. However, the turnaround is ex-
pected to be gradual, with regional GDP forecast
to increase by 6.6 percent in 2010 and 7.8 percent
by 2011.
Europe and Central Asia has been the region most
adversely affected by recent developments, in large
part because many countries in the region entered
the crisis period suffering from substantial imbal-
ances. Large current account deficits and domes-
tic overheating made many countries vulnerable
to the abrupt reversal of capital flows and weaker
export demand that the crisis generated. GDP is
projected to fall by 4.7 percent in 2009, recover-
ing to grow by about 1.6 percent in 2010.
Latin America and the Caribbean entered the cri-
sis supported by stronger fiscal, currency, and fi-
nancial fundamentals than in the past. However,
it too is feeling the crisis in part because of falling
commodity prices, but also on the financial side
as foreign funds were withdrawn quickly. Flex-
ible exchange rates in many countries in the re-
gion were able to absorb much of the initial shock
and avoid systemic problems even as equity mar-
kets tumbled. Regional GDP is expected to de-
cline by 2.3 percent in 2009, and to reach 2 per-
cent growth in 2010.
The Middle East and North Africa region has been
less directly affected by the credit crunch than
other regions, but local equity and property mar-
kets have come under intense pressure, and de-
veloping countries in the region have suffered
from much weaker conditions in the high-income
countries in the region. Remittances, services
exports and FDI flows from these countries and
high-income Europe are expected to fall in 2009 –
cutting into incomes. Growth is projected to halve
to 3.1 percent in 2009, then edge up to 3.8 per-
cent in 2010 and 4.6 percent in 2011, partly be-
cause the slowdown has been less pronounced in
MENA than in other regions and oil demand and
prices are expected to remain low.
South Asia has witnessed considerably diminished
capital inflows and a falloff in investment growth.
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GDP is projected to expand 4.6 percent in 2009,
down from 6.1 percent in 2008. Regional output
is then expected to increase by 7 percent in 2010
and 7.8 percent in 2011. However, threats to long-
term growth include the possibility of heightened
fiscal pressures if the global recession is prolonged,
and large fiscal deficits.
Sub-Saharan Africa has been hit hard by reduced
external demand, plunging export prices, weaker
remittances and tourism revenues, and sharply
lower capital inflows, notably FDI. Growth is ex-
pected to decelerate sharply this year to 1 per-
cent, down from 5.7 percent on average over the
past three years. By 2010, growth is forecast to
rise by 3.7 percent. Sharp cuts in remittances and
official aid flows also represent a risk for the re-
gion, because many Sub-Saharan countries rely on
aid flows for budget support and because remit-
tances are a vital cushion against poverty.
SEBI unveils norms for pledging of
shares
The Securities and Exchange Board of India (SEBI)
has spelt out the reporting norms for companies
whose promoters have pledged shares to a third
party. The market regulator has asked companies
to disclose details of the promoters’ pledged shares
within seven days of the date of receiving infor-
mation from the promoters. In a circular dated
January 28, 2009, SEBI said the promoters, who
have pledged shares, have to disclose the details
to the company within seven days of such a trans-
action. Further, the market regulator said that
companies should disclose all the details pertain-
ing to the promoters’ share pledge, if at the end of
any quarter, the total number of such pledged
shares exceeds 25,000 or one percentage of the
total shareholding, whichever is lower.
Government fiddle opens floodgates to
FDI
The Union government has relaxed guidelines on
Foreign Direct Investment (FDI) for companies
owned and controlled by Indian citizens. This ef-
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fectively means foreign investment in FDI-re-
stricted sectors like telecom, defence production
and single-brand retail can cross set limits. The
new guidelines also say that an investment made
by a non-resident entity into an Indian company
would be counted as foreign investment. Under
the existing norms, if a firm with, say, 40% for-
eign equity and 60% Indian equity had invested
Rs 100 crore in another firm, Rs 40 crore of this
amount would be treated as FDI. Under the re-
vised norms it will now be treated as zero FDI.
Relaxation in foreign direct investment (FDI)
norms would not apply to sectors such as multi-
brand retail, gambling, atomic energy and lottery
where the government prohibits foreign invest-
ment.
Green energy investments in develop-
ing nations rise 27%
The global economic crisis hasn’t deterred the
developing countries from their green energy in-
vestments, which surged 27% in 2008 to $36.6
billion. According to a recent report of United
Nation Environment Programme (UNEP) on Glo-
bal Trends in Sustainable Energy Investment,
2009, global investment in clean energy witnessed
a four-fold increase in 2008, compared to 2004.
Of the $155 billion invested in 2008 in clean-en-
ergy companies and projects worldwide, China,
India, Brazil and African countries, among oth-
ers, contributed almost a third of the amount.
While China led investments in Asia with an 18%
increase over 2007 to $15.6 billion, green energy
investments in India grew 12% to $4.1 billion in
2008.
However, growth in clean energy sectors stalled
in developed countries, said the report, which is
being jointly prepared by the UNEP and global
information provider New Energy Finance.
The total transaction value in the sustainable en-
ergy sector—including corporate acquisition, as-
set refinancing and private equity buyout— dur-
ing 2008 was $223 billion, an increase of 7% over
2007. However, the capital raised via stock mar-
kets fell 51% to $11.4 billion as share prices of
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clean energy companies lost 61% of their value
during 2008.
According to UNEP estimates, the world needs
$750 billion to finance a sustainable economic re-
covery by investing in the greening of five key
sectors: buildings, energy, transport, agriculture
and water.
One billion go hungry world over
One in six people in the world or more than one
billion are now hungry, a historic high due largely
to the global economic crisis and stubbornly high
food prices, according to Food and Agriculture
Organization (FAO). Compared with 2008, there
are 100 million more people who are hungry,
meaning they receive fewer than 1,800 calories a
day, FAO said. Almost all the worlds undernour-
ished live in developing countries, where food
prices have fallen more slowly than in the richer
nations, the report said. Poor countries need more
aid and agricultural investment to cope, it said.
The silent hunger crisis, affecting one-sixth of all
of humanity, poses a serious risk for world peace
and security, said the Director-General of FAO,
Jacques Diouf. Soaring prices for staples, such as
rice, triggered riots in the developing world in
2008. Hunger increased despite strong 2009 ce-
real production, and a mild retreat in food prices
from the highs of mid-2008. However, average
prices at the end of 2008 were still 24% higher in
real terms than in 2006.
Globally there are now about 1.02 billion people
hungry, up 11% from 2008’s 915 million. The es-
timates are based on analysis by the US Depart-
ment of Agriculture. Asia and the Pacific, the
world’s most populous region, has the largest num-
ber of hungry people at 642 million. Sub-Saharan
Africa has the highest hunger rate, with 265 mil-
lion under-nourished, representing 32% of the
region’s population.
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Third stimulus package
The Union government, on February 25, 2009,
unveiled a Rs 30,000-crore stimulus package, the
third in a row to boost demand in an economy
that has been feeling the heat of the global melt-
down. The package includes a cut in the median
excise duty and service tax rates by 2%. All prod-
ucts that attracted an excise rate of 10% will now
be subject to only 8% while service tax on all prod-
ucts is down to 10%. On the other hand, this
means the fiscal deficit of the government in 2009-
10 will increase to Rs 3,61,935 crore, from Rs
3,32,835 crore estimated in the interim budget
announced on February 16, 2009, provided all
other estimates remain the same. So, fiscal deficit
will again cross 6% of GDP as in 2008-09.
The policy brief for a Global Green New Deal,
developed by economist and the UN ahead of the
G-20 meeting of world leaders in London on April
2, 2009, highlights the benefits of investing a sig-
nificant amount of the $ 3 trillion-worth of glo-
bal stimulus packages in five areas. The UN Envi-
ronment Programme said these areas include rais-
ing the energy efficiency of old and new build-
ings, and more emphasis on renewable energy
sources. The three other areas are: sustainable
transport, including hybrid vehicles, high-speed
rail and bus rapid transit systems; the planet’s eco-
logical infrastructure, including freshwaters, for-
ests, soils and coral reefs, and sustainable agricul-
ture, including organic production.
New Direct tax code
Making the process of paying taxes simpler for the
common man has always been on top of the UPA’s
agenda. This was amply demonstrated today with
the government initiating radical tax reforms by
releasing the direct tax draft code that aims to
moderate tax rates and at the same time tries to
make it easier for a layman to understand and cal-
culate his tax liability.
The reform of the tax regime introduced in 1961
is based on the objective of having a tax system
that is simpler, fairer, and easy to administer. The
Copyright © 2009 | WWW.UPSCPORTAL.COM
specific objectives of the measures are to improve
the responsiveness of the tax system, that is, to
enhance the automaticity in the increase in tax
revenues with increases in economic activity; im-
prove tax administration by simplifying the tax
system; and, lastly, promote tax compliance ob-
jective as to reduce the scope for disputes and
minimize litigation.
The goal of the new tax code is to consolidate and
amend all direct taxes and simplify language to
ensure that the law can be reflected in the return
form. The aim is also to reduce scope for litigation
and provide flexibility in accommodating changes
without need for frequent amendments.
Gains
Deduction (the popular section 80C) increased to
Rs 3 lakh from present Rs 1 lakh. Thus, a person
with taxable income of Rs 10,00,000 is likely to
save approx Rs 1,20,000 annually.
» Corporate tax rates, including for foreign com-
panies, reduced to 25% from 34%.
» Net wealth tax exemption limit increased to Rs
50 crores from Rs 30 lakhs.
» Wealth tax rate cut to 0.25% from 1%.
» Indefinite carry forward of tax losses.
» Deduction for donation towards scientific re-
search @ 125%.
» Agriculture income stays outside tax net.
» Deductions for Royalty income of authors who
are individual residents up to Rs three lakhs and
deduction for Royalty income on patents for indi-
vidual residents up to Rs three lakhs.
» STT to be abolished.
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» Cost inflation adjustment to be available for
transfers anytime after one year from end of year
in which asset is acquired (earlier 3 yrs, except for
shares).
» Base date for capital gains tax shifted from April
1, 1981 to April 1, 2000—capital appreciation up
to 2000 not taxable.
» Maximum penalty down to two times tax
amount (from three times tax)
Key pains
(a) Branch profit tax to be introduced @ 15%.
(b) Reintroduction of capital gains tax on listed
shares & MF units.
(c) Tax saving schemes like PPF and retirement
benefit schemes to be taxed on withdrawal time
on “Exempt, Exempt, Tax” (EET) methodology of
taxation, for savings done after introduction of the
new code.
(d) Deduction for rent paid restricted to Rs 2,000
per month.
(e) Profit-linked incentives dropped.
(f) Period consumed in recovering all capital and
revenue expenditure same as tax holiday.
(g) Area based exemptions given earlier to con-
tinue.
(h) Definition of income to include all accruals
and receipts of revenue and capital nature unless
otherwise specified.
(i) Receipt of LIC policy taxable except for pure
life insurance policy.
(j) Distinction between short term and long term
assets done away with.
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(k) Cost of acquisition/improvement nil if not de-
terminable.
(l) Roll over benefits for capital gains tax exemp-
tion trimmed to only one residential house.
(m) Profits on sale of business capital assets/un-
dertaking no longer treated as capital gains, but as
business income.
(n) Loss on sale of business capital assets not al-
lowable, to be only depreciable.
(o) Presumptive rent to be calculated at 6% p.a.
of rateable value when higher than contractual
rent to compute income from house property.
(p) For self occupied property, no deduction for
interest and principal loan repayment.
(q) Income from letting of machinery, plant, fur-
niture included if letting of building is inseparable
from the same.
(r) Rent free accommodation to govt employees
made taxable.
(s) MAT linked to gross assets rather than book
profit @ 0.25% for banking companies and 2% for
others.
(t) No carry forward credit for MAT in later years.
(u) In case of conflict between double tax treaty
and code, the one that is later in point of time
shall prevail
Some new concepts have also been added to the
code. These are:
(a) Tests for residency changed.
(b) Foreign companies, even if partly held/man-
aged from India, will become “resident”.
(c) Concept of ‘resident but not ordinarily resi-
dent’ dropped.
(d) Income from business to be computed sepa-
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rately for each business.
(e) Income-expense model based on US, Canada,
Australia and most Asian countries.
(f) Three types of biz expenses allowed: Operat-
ing expenditure, permitted financial charges and
capital allowances.
(g) Scope of weighted deduction of 150% to be
extended to all industries.
(h) ‘Scientific research’ to be defined.
(i) Presumptive taxation for certain business to
continue.
(j) Separate income determination regimes pro-
vided for hospitals, SEZ, infrastructure, etc.
(k) MF, VCF, Pension Fund etc. To be taxed as
pass through entities.
(l) New tax regime for trusts, institutions carry-
ing on charitable activities.
New Foreign Trade Policy
India has extended tax holiday and duty refund
for exporters, while allowing duty-free capital
goods import under its Foreign Trade Policy to
insulate them from protectionism induced by re-
cession abroad. The new five-year policy was re-
leased on August 27, 2009 by Commerce Minister
Anand Sharma. It sets a target of $200 billion
worth exports for 2010-11, a feat that India failed
to achieve in 2008-09 due to a slump in global
demand in the face of financial crisis.
Extension of income tax holiday for export units
for one more year and continuance of duty re-
fund scheme till December 2010 and enhanced
assistance for the scheme for development of mar-
kets are among the measures in the FTP. The aim
of the policy, which would be reviewed after two
years, would be to "arrest and reverse declining
trend of exports”.
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Exports have been on a decline for the past 10
months. Exports in FY'09 amounted to $168 bil-
lion and the country hopes to maintain the same
level in 2009-10.
The government would encourage exports
through a “mix of measures including fiscal in-
centives, institutional changes, procedural
rationalisation and efforts for enhance market ac-
cess across the world and diversification of export
markets”.
The policy would provide a special thrust to the
employment-oriented sectors which have wit-
nessed job losses in the wake of recession, espe-
cially in the fields of textiles, leather and handi-
crafts.
Highlights
» Aims annual growth of 15 pc in 2010-11.
» Double India’s exports of goods and services by
2014.
» A high-level panel to look into dollar needs of
exporters.
» Six 'Made in India' shows to promote Brand In-
dia.
» Directorate of Trade Remedy Measures to safe-
guard exporters.
» Duty Entitlement Passbook Scheme extended
till December 2010.
» A single window system for export of perish-
able agri produce.
Value addition norm for tea halved to 50 per cent.
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 Section -6 (IAS Mains Special : ECONOMY)
International Yearbook of Industrial
Statistics 2009
According to recently released International Year-
book of Industrial Statistics 2009 by United Na-
tions Industrial Development Organisation
(Unido), the share of developing countries in the
world’s manufacturing value-added output has
almost doubled in the last 18 years due to the shift
of production units and outsourcing of services
from developed nations. Developing countries
produced almost 30% of world manufacturing
value added (MVA) at the end of 2008 as com-
pared to 16% in 1990. The per capita MVA
doubled as early as 2006, while the industrialised
world achieved merely 30% increase. Among
industrialised countries, Japan accounts for most
MVA per capita, followed by Switzerland,
Singapore, Ireland, Finland, Sweden, USA, Ger-
many and Austria. Luxemburg, Republic of Ko-
rea, Denmark, Iceland, Canada, Belgium, United
Kingdom, Norway, Netherlands, Italy and France
come lower down the list.
For India, the growth rate of MVA output rose
from 6.9% in 2000-2005 to 12.3% in 2005-2007.
The MVA per capita grew 10.6 % in 2005-2007
compared to 5.2% in 2000-2005. The share of
MVA in India’s gross domestic product (GDP)
stood at 14.8% in 2006 compared to 13.8% in 2001.
Manufacturing still contributes around 15% of
GDP in India. International Yearbook 2009 ranks
India among the world’s leading 12 producers of
textiles (ranked 4th after China, the U.S. and Italy);
electrical machinery and apparatus (5th); basic
metals (6th); chemicals and chemical products
(7th); leather, leather products and footwear
(10th); coke, refined petroleum products and
nuclear fuel (10th); machinery and equipment
(12th); and motor vehicles (12th), based on 2007
figures. Among the leading developing countries,
India figures among the top five.
RBI Policy Review
Announcing the first quarter policy review for
Financial Year 2009-10, RBI Governor D.
Subbarao said the apex bank’s status quo on policy
Copyright © 2009 | WWW.UPSCPORTAL.COM
rates would anchor interest rate expectations that
could spur investment demand. With concerns
over rising inflation, the RBI has decided to leave
Cash Reserve Ratio at 5 per cent and the repo and
reverse repo rates at 4.75 per cent and 3.25 per
cent, respectively.
The RBI has projected inflation at 5 per cent from
the 4 per cent forecast earlier. India’s GDP is pro-
jected to grow to 6 per cent in March 2010 “with
an upward bias”. Export demand remains weak.
The services sector is sluggish on lagged impact of
weak industry growth, but the business outlook
has turned positive.
According to the RBI, its policy initiatives since
mid-September 2008 aimed at providing ample
rupee liquidity and ensuring continued flow of
credit to all productive sectors has shown results.
These actions have resulted in augmentation of
actual/potential liquidity of over Rs 5,61,700 crore.
The liquidity situation has remained comfortable
since mid-November 2008 as evidenced by the
LAF window where the Reserve Bank has been
absorbing nearly Rs 1,20,000 crore on a daily av-
erage basis during 2009-10.
Prime Minister’s Employment Genera-
tion Programme
Ministry of Micro, Small and Medium Enterprises
(MSME) had launched on aug 15,2008 a new credit
linked subsidy programme called Prime Minister’s
Employment Generation Programme (PMEGP) by
merging the two schemes that were in operation
till 31.03.2008 namely Prime Minister’s Rojgar
Yojana (PMRY) and Rural Employment Genera-
tion Programme (REGP) for generation of employ-
ment opportunities through establishment of mi-
cro enterprises in rural as well as urban areas.
PMEGP will be a central sector scheme.
The subsidy levels, the cost limit of projects or
units that could be established under PMRY which
was extended to rural areas as well in 1994-95,
were quite low and unattractive compared to those
available to the beneficiaries in REGP. While the
maximum subsidy admissible was Rs.12500 and
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 Section -6 (IAS Mains Special : ECONOMY)
the maximum cost of project that could be estab-
lished was Rs.5 lakh under PMRY, the maximum
subsidy that was admissible was Rs.4 lakh and the
maximum cost of project that could be established
was Rs.25 lakh under REGP for a beneficiary be-
longing to General category.
There were more attractive programmes for cre-
ation of self employment opportunities being op-
erated by many State Governments. Recovery
rates of loans under PMRY were also consider-
ably less than those under REGP.
PMEGP improves upon the subsidy levels and cost
limits of projects compared to those available so
far under PMRY and REGP, while simultaneously
strengthening the selection process, implementa-
tion and monitoring mechanism. Higher levels of
subsidy have been proposed for beneficiaries be-
longing to marginalized sections of the society like
Schedule Castes, Schedule Tribes, Other Backward
Classes, Minorities, Women, Physically Handi-
capped, etc. to ensure inclusive growth.
The upper limit of the cost of project that could
be setup in the manufacturing sector is Rs.25 lakh
while that in the business/service sector is Rs.10
lakh. There are no ceiling limits of annual income
in respect of beneficiaries while a minimum edu-
cational qualification of VIII standard pass will be
required for beneficiaries in respect of projects
costing more than Rs.10 lakh in manufacturing
sector and more than Rs.5 lakh in business/ser-
vice sector. The beneficiaries would be identified,
inter alia, with the help of Panchayats, Special
Awareness Camps and will be provided with a
mandatory Entrepreneurship Development
Programme (EDP) training of a duration of two
to three weeks.
The scheme envisages electronic tracking of ap-
plications, 100 per cent verification of projects/
units that will be established and model project
profiles have been updated in association with
banks. The scheme will be implemented at the
national level through Khadi and Village Indus-
tries Commission (KVIC), an organization created
under an Act of Parliament reporting to MoMSME
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which will place the funds of Government sub-
sidy with the participating banks which in turn
will disburse the same to the beneficiaries on re-
ceipt of applications and their own contribution
‘upfront’ in accordance with the guidelines of the
scheme.
Budget Estimates 2008-09 have provided Rs.823
crore for PMEGP which includes Rs.83 crore to-
wards Backward and Forward linkages including
EDP training, publicity, marketing support, e-
tracking of applications, physical verification of
projects and so on. An estimated 6.17 lakh addi-
tional employment opportunities are targeted to
be generated in 2008-09. The estimated total out-
lay for subsidy under PMEGP is Rs.4485 crore in
addition to Rs.250 crore earmarked for providing
Backward and Forward linkages to the micro en-
terprises between 2008-09 to 2011-2012 leading
to an estimated generation of around 37.38 lakh
additional employment opportunities. The scheme
will be got independently reviewed after two years
of its implementation.
Lean Manufacturing Scheme
The government on July 29, 2009 launched 'Lean
Manufacturing Scheme' for the micro, small and
medium units to enhance the manufacturing com-
petitiveness of the sector, battling the global de-
mand recession.
Objective
The objective of this scheme is to enhance the
manufacturing competitiveness of the micro, small
and medium enterprises (MSMEs) by applying lean
techniques to identify and eliminate waste in the
manufacturing process.
The scheme would be implemented initially in 100
clusters (in the industries having potential for
improvement in competitiveness and productiv-
ity) on pilot basis in one year.
Initially, under this scheme the government has
made a provision of Rs 31 crore.
The clusters, each a group of about 10 units, would
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 Section -6 (IAS Mains Special : ECONOMY)
be selected from different parts of the country and
would undergo lean interventions for about a
year.
During the end of the first year, an impact assess-
ment study would be carried out for these 100
clusters and the outcome of the report will form
the basis for upscaling this programme to cover
another 300-500 clusters in the subsequent year.
Consultants would be deployed to identify clus-
ter- specific needs who will suggest specific lean
techniques for intervention in the selected mini-
clusters.
As engaging consultants is quite expensive for
MSME units, the government will contribute up
to 80 per cent of this fee while the remaining
charge will have to be borne by the beneficiary
units as part of the scheme.
The purpose of the lean techniques would be to
assist MSME units in reducing their manufactur-
ing costs through proper personnel management,
better space utilisation, scientific inventory man-
agement, improved process flows and reduced
engineering time.
Lean Manufacturing Programme will also lower
costs and improve the quality of products, which
will enable these products to compete in national
and international markets.
There are about 13 million MSME units in the
country which employ over 42 million people. The
sector contributes over 45 per cent to the country's
industrial production and 40 per cent to the total
exports.
C. Rangarajan committee on savings
and investment
A high-level panel headed by Rajya Sabha MP and
former Reserve Bank of India governor C
Rangarajan, has suggested a holistic overhaul of
the methods used to arrive at national savings and
investment aggregates, in a report submitted to
the Centre on march 16,2009.
Among the most significant changes mooted is to
Copyright © 2009 | WWW.UPSCPORTAL.COM
use the online compliance facility launched by the
ministry of corporate affairs for all registered firms,
the MCA-21, to calculate the actual savings and
capital formation in the private sector. Currently,
savings and investment estimates of the corporate
sector are estimated by culling out the savings,
capital investments and paid up capital of the 5,000
biggest firms and ‘blowing these up’ to arrive at
overall aggregates.
Companies are already complying under the MCA-
21 programme, but are currently filing their bal-
ance sheets and profit and loss accounts by simply
scanning them and uploading them.
The gross domestic savings rate shot up from
29.8% in 2003-04 to 37.7% in 2007-08 largely
thanks to corporate savings almost doubling over
the period. So a move to reflect India Inc’s savings
and investment numbers accurately is significant
at a time when experts believe India’s savings and
investment rate will be hit hard by the current
global slowdown. The domestic investment rate
as a proportion of GDP increased from 27.6% in
2003-04 to over 39% in 2007-08.
The Rangarajan Committee, appointed in Decem-
ber 2007, has segregated its recommendations to
capture better savings and investment data from
the private sector, public sector and households.
The idea is to capture the rapid structural changes
in the income levels and saving behavior in the
Indian economy in recent years.
To calculate household savings better, regulators
like the Insurance Development Regulatory Au-
thority, the Pension Fund Regulatory Develop-
ment Authority, Securities Exchange Board of
India and the National Bank for Agricultural and
Rural Development have been asked to furnish
data with as little time lag as possible on savings
deposits under their ambit from life insurance sav-
ings, pension funds, stocks and mutual funds and
co-operative banks.
Most importantly, to get a clearer asset-liability
profile of Indian households, the Rangarajan com-
mittee has asked the CSO to present total house-
hold savings differently. Currently, only the net
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 Section -6 (IAS Mains Special : ECONOMY)
financial savings are reported by deducting gross
financial liabilities from gross financial assets and
physical assets.
To get more data on deposits with non-banking
finance companies, the panel has suggested that a
census be undertaken by the MCA and the RBI
every five years. At the same time, unregistered
firms’ deposits need to be estimated through
sample surveys.
Global Innovation Index 2008
The Second Global Innovation Index 2008 (GII)
jointly published by Confederation of Indian In-
dustry and INSEAD Business School, has once
again placed United States at the top of the Global
Innovation Rankings on Jan.7,2009. India, on the
other hand, is ranked a lowly 41.The GII that has
studied 130 countries has ranked Germany in the
second position, followed by Sweden, the United
Kingdom and Singapore.
The European economies including the Nordic
ones continued to do well in 2008. Switzerland,
Denmark and the Netherlands figured in the top
10 apart from Germany, Sweden and UK that fig-
ure in the top 5. However, France was the biggest
loser slipping from the 5th to 19th position.
Singapore and South Korea are two Asian coun-
tries figuring in the top 10. However, Japan has
slipped to the 9th position from the 4th and India
its last year’s ranking of 23rd to the 41st position.
With China ranked at 37th, most BRIC countries
have been ranked lower than last time. Israel and
Qatar from West Asia and Middle East find places
in the top 25. There are other countries from the
Middle East just below this quartile.
The GII results have revealed that innovation is
correlated with income levels in a country. For
example, the innovation levels in the OECD coun-
tries are much more than non-OECD countries.
There are few countries from Africa that are in-
cluded in the rankings with only South Africa
coming in at the 43rd position. Over the years,
through its own research, INSEAD has examined
the many factors enabling national economies to
achieve sustained and higher innovation capabili-
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ties. The goal has been to provide benchmarking
tools for business leaders and policymakers to iden-
tify obstacles to improved innovation and com-
petitiveness and stimulate discussion on strategies
to overcome them. This time and earlier in 2007,
INSEAD based its innovation analysis on the Glo-
bal Innovation Index (GII) and Framework, a
highly comprehensive index for measuring global
innovation, which captures the microeconomic
and macroeconomic parameters and variables.
CII has over the years, taken a pioneering role in
building a culture of innovation in Indian indus-
try and society. It is CII’s belief that the only way
for Indian industry to have sustainable and inclu-
sive growth is to adopt innovation as a business
strategy. With this belief, a number of initiatives
have been taken by CII in the area of innovation.
To make a successful plan and roadmap for ac-
tion, there is a need for India to align the mea-
surement gauge with similar benchmark practices
adopted globally.
Innovation is no longer restricted to the vertical
structures of R and D laboratories and universi-
ties. Therefore an approach that goes beyond the
number of patents registered, number of articles
published in research journals and percentage of
GDP spending on R and D measuring innovation
is needed. This is the key assumption behind the
approach used in this study.
The GII while arriving at the results has made a
distinction between inputs and outputs while
measuring innovation in an economy. Inputs are
aspects that enable an economy to stimulate in-
novative and outputs are the results of innovative
activities within the economy. The input pillars
include Institutions and Policies, Human Capac-
ity, General and ICT Infrastructure, Market So-
phistication and Business Sophistication.
The output pillars that provide evidence of the
results of innovation within the economy are
Knowledge Creation, Competitiveness and Wealth
Creation.
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 Section -6 (IAS Mains Special : ECONOMY)
The data for the GII was collected from reputed
international organizations such as the World
Economic Forum, the World Bank and the Inter-
national Telecommunications Union. In particu-
lar, a combination of qualitative and quantitative
data is used for the computation of the GII. The
qualitative data is obtained from the Executive
Opinion Survey, a global CEO survey conducted
by the World Economic Forum.
Challenge Fund
A Challenge fund for Export Promotion Activi-
ties by Indian Missions abroad, has been set- up
with a corpus of Rs. 5 crore, under the Market
Access Initiative (MAI) scheme on 14 Jan 2009.
The MAI scheme of the Department of Commerce
is an export promotion scheme envisaged to act as
a catalyst to promote India's export on a sustain-
able basis. Since, Indian Missions abroad are also
eligible for assistance under the scheme, a "Chal-
lenge Fund" has been created under the same.
The MAI will focus on the markets which in turn
will focus upon product export promotion activi-
ties including innovative market promotion
projects to showcase the Indian export capabili-
ties. Projects relating to only market promotion
activities shall be considered; export promotion
of new items in India's export baskets by way of
market development and market penetration and
export promotion initiatives for Micro, Small and
Medium enterprises (MSME) with a stress on re-
gions and countries where India has a small bilat-
eral trade profile (Africa and Latin America), shall
be given priority; duplication of projects already
implemented under the MAI/ MDA scheme of the
Commerce Ministry is prohibited.
The fund shall be used to finance specific export
promotion schemes and projects which envisage
introduction of new items of export towards di-
versification of the Indian export basket in the host
country. These projects shall be proposed by In-
dian Missions abroad. Each individual project has
been assigned a budget of Rs. 10 lakh. Priority shall
be given to focused, specific projects with tangible
results. The project proposals received shall be
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subjected to compete for funding on their merits.
Poorest Areas Civil Society Programme
The UK Government’s Department for Interna-
tional Development (DFID) is soon going to be-
gin the second phase of the PACS Programme.
The second phase of PACS will be a five year
programme and will build on the momentum of
the first phase. This phase, to be launched later in
2009, will focus on the poorest areas across seven
states of Uttar Pradesh, Bihar, Madhya Pradesh,
Jharkhand, Chhattisgarh, Maharashtra and Orissa.
It aims to enhance the rights and entitlements of
poor, particularly the most excluded groups, in the
implementation of Government’s policies and
programmes.
The first phase of the programme, which ended
in April 2008, covered over 19,564 villages in 94
districts of 6 states. It reached over 6 million people
and helped poor access benefits from government
programmes estimated Rs.106 crores. It strength-
ened and improved panchayati raj (Local Govern-
ment) institutions, making them more responsive
to the needs of the poor and increased represen-
tation of women.
The Indian Forum for Inclusive Response and So-
cial Transformation (IFIRST), a consortium of civil
society organisations led by Christian Aid, along
with the Indian Institute of Dalit Studies, Caritas,
Financial Management Services Foundation and
ACCESS Development Services, has been selected
by DFID to manage the second phase of the PACS
programme.
India’s population may touch 2 billion
by 2101
India’s future population could be much more than
what is currently estimated. The latest demo-
graphic projections by the Population Foundation
of India (PFI) and the Population Reference Bu-
reau (PRB), USA, predict that India may have a
population of two billion by 2101, posing huge
challenges in terms of distress migration, pressures
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 Section -6 (IAS Mains Special : ECONOMY)

of the numbers on land, employment and environment, prolonged poverty and changes in the demo-
graphic balance.

The study makes two more alarming conclusions: the population of 60 plus would exceed that of those
aged between 0 and 14 years, leading to substantial future ageing in India by 2051. Further, Uttar Pradesh,
Bihar, Madhya Pradesh and Rajasthan would account for almost half of the country’s population by 2101.
These four States, with their high fertility rate, currently account for 40 per cent of the country’s numbers,
and are characterised by low literacy levels and low health indicators such as high infant and maternal
mortality.

There is, however, a difference between population projections of India by the Registrar General of India
(RGI) and those by the PFI/PRB. Contrary to the RGI’s projection of 1,399 million population of India by
2026, the PFI/PRB projections indicate 1,464 million by the said year. The new demographic study puts
the country’s population at 1825 million in 2051, reaching up to 2181 (crossing the two billion mark) by
2101.

These differences stem mainly from the assumed total fertility rates (TFRs) in the country’s four most
populous States—UP, Bihar, MP and Rajasthan. Whereas the PFI study concludes that TFR of 2.1 will be
achieved in UP between 2051-56; Bihar (2061-66); MP (2041-46) and in Rajasthan between 2051-56, the
RGI assumes these States would achieve the TFR targets much earlier.

As per the PFI, India, with the final TFR of 1.85, will achieve two billion population by 2101; growth will
peak in 2081-2086, after which the population decline will start. The population of Kerala and Tamil Nadu
would start declining in 2041-2051; that of Andhra Pradesh and West Bengal would do so around 2061.

The study adds: “The priority for India should be to contain the unacceptably high numbers of maternal
and infant deaths, improve quality health services for institutional deliveries; meet the unmet needs of
family planning services and focus on adolescents and youth (10 to 34 years) to make them productive
through gender-sensitive education.”

Global Gender Gap Report 2008 released by Geneva-based

World Economic Forum (WEF) in 2008. With 113th po-
sition among 130 countries in the annual list, India among
the 20 countries where the gender gap is the widest, while
the country is sixth in economic inequality between men
and women. Though, India has improved its overall rank-
ing by one position from 114th in 2007, primarily due to
improvement in better than average performance in po-
litical empowerment space.

Norway moved to the top from its third position in 2007.

The rankings are based on four parameters-economic par-
ticipation and opportunity, education attainment, politi-
cal empowerment and health and survival. Norway, re-
placed Sweden at the first position, is followed by Fin-
land, Sweden, Iceland, New Zealand, Philippines, Den-
mark, Ireland, Netherlands and Latvia in the top ten. The Nordic countries have occupied all the four top
positions in the list.

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130
 Section -6 (IAS Mains Special : ECONOMY)
In its overall ranking, India is ranked lowest among
the four BRIC countries. The neighbouring China
has jumped 17 places to 57th rank in 2008 on the
back of narrowing gender gaps in educational at-
tainment, economic participation and political
participation. Nepal ranked 120, Pakistan 127,
Bangladesh 90 and Sri Lanka 12 in 2008. The Phil-
ippines at 6 and Sri Lanka 12 remain distinctive
for being the only Asian countries among the top
20.
In terms of economic participation and opportu-
nity, India has been ranked 125th. The country is
placed at 25th rank in terms of political empow-
erment, while it is ranked 116th and 128th in
terms of educational attainment and health and
survival, respectively.
Happy Planet Index
India is way ahead of many developed economies,
including the US and the UK, in terms of happy
lives and eco-friendliness, with the country cor-
nering the 35th spot among 143 nations. The
‘Happy Planet Index (HPI)’ compiled by UK-based
New Economics Foundation has placed India at
the 35th position while the list is topped by Costa
Rica.
Going by the report, the US is at the 114th spot
while the UK is better placed at 74th position.
Among the BRIC nations, Brazil and neighbouring
China are ranked higher at ninth and 20th places,
respectively. Russia is a distant 108th.
The survey noted that “the countries that are
meant to represent successful development are
some of the worst-performing in terms of sustain-
able well-being. The index provides a measure of
the ecological efficiency with which happy and
healthy lives are supported.
According to the report, ecological footprint of a
person is a measure of the amount of land required
to provide for all the resource requirements for
that person, plus the amount of vegetated land
required to absorb his CO2 emissions and the CO2
emissions embodied in the products he consumes.
The survey covered the countries that account for
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nearly 99 per cent of the world’s population. The
report said that in an age of uncertainty, society
globally needs a new compass to set it on a path of
real progress. The Happy Planet Index (HPI) pro-
vides that compass by measuring what truly mat-
ters to us, our well-being in terms of long, happy
and meaningful lives and what matters to the
planet, our rate of resource consumption.
The survey noted that there is actually a negative
correlation between GDP growth and change in
HPI scores between 1990 and 2005. The index is
based on high life expectancy, high life satisfac-
tion and ecological footprint a measure which
takes into account carbon emissions by individu-
als.
Visit India 2009
In an effort to boost the confidence of visitors and
tourists after the Mumbai attacks, the Union Min-
istry of Tourism, India has launched a new scheme
'Visit India 2009' offering various incentives to
foreign tourists and tourism industry. These value
addition services will be offered to tourists visit-
ing the country during the period April 2009 -
March 2010.
The incentives would offer one complimentary
international air passage for traveling companion,
one night complimentary stay in the hotel booked
by the traveler, complimentary sightseeing in any
one city of their choice and a complimentary ru-
ral eco holiday. The idea is to provide one addi-
tional service for every service paid for, by the
tourists with the help of top airlines and organi-
zations like Hotel Association of India (HAI) and
Indian Association of Tour Operators (IATO).
All three major airlines of the country — Air In-
dia, Jet Airways and Kingfisher —have joined this
endeavor of the government by providing the ad-
ditional air passage for traveling companions. Fur-
thermore, all member hotels of the HAI will be
offering the service of complimentary night stay
in the hotel booked by the tourist. Members of
the IATO, an organization recognized by the Min-
istry of Tourism, will offer one complimentary
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 Section -6 (IAS Mains Special : ECONOMY)
local sightseeing tour in any one of the cities vis-
ited by the tourist.
The Department of Tourism also has plans to or-
ganize road shows in countries like Singapore,
Canada, UK, Japan and Australia, in joint venture
with the IATO. The ongoing year will see a rise
in the advertisements and marketing through
trade fairs and exhibitions to draw the attention
of foreign tourists from across the world. More-
over, there are possibilities of constructing heli-
pads in various places to introduce the helicopter
services for the tourists.
Report of the Task Force for Exports of
Pharmaceutical Products
The Task Force to recommend measures for in-
creasing exports of pharmaceutical products was
constituted in July, 2006.This Task Force submit-
ted its report on December 12, 2008.The Task force
enunciated a vision for Indian pharmaceutical
R&D as:
To provide intellectual capital to make available
safe, cost-effective, contemporary, quality thera-
peutics to the people of India and help reduce
percentage of mortality and morbidity while
emerging as a significant player in the global mar-
ket place."
In consonance with this vision, a grand dream for
production, export and investment in pharmaceu-
tical R&D was evolved. This report suggests the
measures by which such a dream and vision could
be realised.
Priority areas for Indian pharmaceutical R&D have
been identified. India’s expertise in developing
new and innovative processes for known mol-
ecules needs to be exploited in a greater measure.
While India forged ahead in conventional phar-
maceutical technologies, it lagged behind in com-
plex technologies, specialty pharmaceuticals and
new drug delivery systems. Investment impetus
required in these areas has been specified.
Priority needs to be given for initiation of new
drug development for diseases of relevance to the
Copyright © 2009 | WWW.UPSCPORTAL.COM
Indian population, while at the same time seizing
opportunities to become a global player by intro-
ducing globally competitive products based on new
molecules. Currently India is at a nascent stage in
drug discovery and the industry is focusing on
strategies to earn while learn. Key building blocks
in the value chain could be focused to facilitate
the drug discovery. These have been discussed.
A key factor to retain competitiveness is low cost
of innovation and process management. In the
current context of rapidly rising wages for select
skilled population, efforts to widen the skill base
and strategies to generate the skill base have been
discussed.
To achieve such objectives, the existing human
resources in conventional methods of drug discov-
ery need refurbishing alongside acquisition of
newer tools of drug discovery. A larger team of
experts comprising chemistry, biology, biotech-
nology, etc., need to find select viable strategies
for India in drug discovery. Drug discovery is a
product of strong efforts at universities, public
institutions and industry. The direction of effort
has been specified.
Citing the unique opportunity for India to become
a leading centre for clinical trials, the report sug-
gests basic changes in the legislation allowing im-
port of animals, contract research and a legal sta-
tus for institutional animal ethics committee. Es-
tablishment and operationalisation of a cGMP,
GLP and GCP monitoring authority has been rec-
ommended.
The Prevention of Money Laundering
(Amendment) Act, 2009
A Bill aimed at effectively combating money-laun-
dering, terror financing and cross-border economic
offences was passed by Parliament and has come
into force with effect from June 01, 2009.
The Prevention of Money Laundering (Amend-
ment) act, 2009 seeks to ensure a legal framework
to check such crimes. The new law seeks to check
use of black money for financing terror activities.
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 Section -6 (IAS Mains Special : ECONOMY)
Financial intermediaries like full-fledged money
changer, money transfer service providers such as
Western Union and International Payment gate-
ways, including VISA and MasterCard have also
been brought under the ambit of The Prevention
of Money-Laundering Act.
Consequently, these intermediaries, as also casi-
nos, will be brought under the reporting regime
of the enforcement authorities. It would also check
the misuse of promissory notes by FIIs, who would
now be required to furnish all details of their
source. The Act would check misuse of “proceeds
of crime” be it from sale of banned narcotic sub-
stances or breach of the Unlawful Activities (Pre-
vention) Act.
Prevention of Money Laundering (Amendment)
act will enable India’s entry into Financial Action
Task Force (FATF), an inter-governmental body
that has the mandate to combat money launder-
ing and terrorist financing. The Act will address
India’s international obligation and empower the
enforcement directorate to search the premises
immediately after the offences are committed and
police have filed a report.
Satyam Scam
Ramalinga Raju, the politically-connected pro-
moter-chairman of Hyderabad headquartered
Satyam Computers was lying for years to share-
holders, employees and the world at large, build-
ing up to India’s largest corporate fraud of over Rs
7,000 crore. India’s fourth largest IT company—
after TCS, Infosys and Wipro—was for years cook-
ing its books by inflating revenues and profits, thus
boosting its cash and bank balances; showing in-
terest income where none existed; understating
liability; and overstating debtors position (money
due to it). This wasn’t some fly-by-night operator
that had been caught out. Satyam is listed on the
NYSE, boasts 185 Fortune 500 companies and the
US government among clients and employs 53,000
people. The Union government has entrusting the
probe to the Serious Fraud Investigations office,
or SFIO.
Copyright © 2009 | WWW.UPSCPORTAL.COM
Cabinet okays Rs 25,000 cr for NBFCs
The government has set in motion the process of
providing liquidity support of up to Rs 25,000 crore
to cash-strapped Non-Banking Finance Companies
(NBFCs) to enable them to pay existing liabilities
as was announced in the second stimulus package
to spur sagging economic growth. A Stressed As-
set Stabilisation Fund, set up for acquiring the
stressed assets of IDBI, would function as a Spe-
cial Purpose Vehicle (SPV) to provide money to
non-deposit taking systemically important NBFCs.
The SPV would issue government guaranteed se-
curities, subject to a total amount of securities not
exceeding Rs 20,000 crore with an additional Rs
5,000 crore, if needed. The funds will be used by
NBFCs only to repay existing liabilities he said,
adding the RBI would issue guidelines for pricing
and lending in consultation with the Department
of Financial Services.
Maha-navratna status
The Planning Commission had recommended
Maha-navratna status to BHEL, Bharat Petroleum,
Hindustan Aeronautics, Hindustan Petroleum,
Indian Oil, NMDC, Power Grid Corporation, REC
and SAIL. Maha-navratna status would give these
companies freedom to make investments up to
50% of their net worth, while the investment cap
on a single project would go up to 25% of their
net worth. The tag will also have given them
greater functional autonomy for forming joint
ventures.
Union government to infuse capital in
three PSU banks
In order to strengthen the Public Sector Banks,
the Union government has decided to infuse Rs
3,800 crore into three State-run banks—Central
Bank of India will get Rs 1,400 crore, while UCO
Bank and Vijaya Bank will get Rs 1,200 crore each.
The capital infusion would be done in two
tranches—the first tranche would be made avail-
able during 2008-09 and the remaining in 2009-
10. The capital infusion will help these banks to
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 Section -6 (IAS Mains Special : ECONOMY)
raise capital adequacy over 12%, much above the
Basel II norms of 9%. The government holding in
Central Bank of India currently stands at 80.2%
cent, in UCO bank 76%, while in Vijaya Bank it is
53%.
Steps to boost exports
During 2008-09, India did achieve an export
growth of 30.9 per cent till September 2008, but
since then there has been a setback due to the
global recession. The following sops have been
announced by the Union government to boost
exports: Customs duty under export promotion
capital goods scheme cut to 3 per cent from 5 per
cent; Special incentive of Rs 325 crore for various
sectors like handmade carpets, leather and tech-
nical textiles from April 1, 2009; Threshold limit
for recognition as premier trading house reduced
to Rs 7,500 crore; Benefit of 5 per cent under “fo-
cus product, focus market scheme for export of
handmade carpets; Authorised persons of gems
and jewellery units can personally carry imported
gold of up to 10 kg; Obligation under export pro-
motion capital goods scheme extended till 2009-
10 for sops availed during 2008-09; Opening of an
independent office of DGFT at Srinagar.
Unique ID project
Marking the beginning of the Herculean task of
providing every Indian citizen with a National
Identity Card, the UPA government has ear-
marked Rs 100 crore for setting up the Unique
Identification Authority of India (UIAI) in the
annual plan of 2009-10. The project is aimed at
establishing citizenship, addressing security-re-
lated issues and containing frauds, especially in
government run schemes. The UIAI will be re-
sponsible for creating and maintaining the core
database and laying down all necessary procedures
for issuance and use of the unique ID card, in-
cluding arrangements for collection, validation and
authentication of information, proper security of
data and rules for sharing and access of data. Ini-
tially, the UID number will be assigned to all vot-
ers by building on current electoral roll data. Pro-
gressively, other persons, including those below
Copyright © 2009 | WWW.UPSCPORTAL.COM
18 years, will be added to the list.
Special Economic Zones (SEZs) and
stamp duty
Developers of Special Economic Zones (SEZs) will
now get a blanket exemption from stamp duty on
land purchases within the notified area for non-
core activities such as building hotels, housing
complexes, shopping malls and golf courses. For
the developers of the 500-odd SEZs in the coun-
try, slated to bring in investments of over Rs
100,000 crore, this ends the uncertainty that had
cropped up after some States had voiced their
opposition. The exemption, however, will be
available only after formal approval of the zone.
For land bought after in-principle approval, the
State government may either give the exemption
upfront or collect the duty and refund it after the
zone has been set up. If under some circumstances,
notification of a zone is cancelled, the State gov-
ernment will be entitled to withdraw the conces-
sion and recover the same from the developer.
India ranks low in public
health spending
As per a WHO study, India ranks 171 out of the
175 countries in the world in public health spend-
ing. This is less than some of the sub-Saharan Af-
rican countries. For a country of one billion, In-
dia spends 5.2% of the GDP on healthcare. While
4.3% is spent by the private sector, the govern-
ment continues to spend only 0.9% on public
health. When the economic growth index is mov-
ing forward, the wellness index is dipping.
While India ranks among the top 10 countries for
communicable disease, it is, today, world leader
of chronic diseases like diabetes, hypertension and
coronary artery disease.
One of the key findings of the commission was
that by improving the health condition, the
economy of the country will improve. But it has
been reverse in India. There is growth in GDP
but there has been no increase in healthcare spend-
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 Section -6 (IAS Mains Special : ECONOMY)
ing. This inadequate public health spending has
forced the public to depend on private sector.
India’s health scenario currently presents a con-
trasting picture. While health tourism and pri-
vate healthcare are being promoted, a large sec-
tion of Indian population still reels under the risk
of curable diseases that do not receive ample at-
tention of policy-makers.
Best E-Governed State
Tamil Nadu is the best e-governed State in India,
according to a study by IDC India. Apart from its
high IT spends, the southern State has also scored
high on parameters such as citizen and business
satisfaction. The other States in the top five in-
clude: Himachal Pradesh, Delhi, Haryana and
Andhra Pradesh.
India’s per capita income
Rising by almost 60 per cent since 2003-04, India’s
per capita income, which indicates what an aver-
age person earns, has increased to Rs 33,283 in
2007-08, as per the quick estimates of national
income released by the Central Statistical
Organisation (CSO). The per capita income, in-
creased by 12.7 per cent (at current prices) during
2007-08, while country’s population inched up by
1.4 per cent to 1.38 billion by the end of the fis-
cal.
Change in base year of the Wholesale
Price Index
The Union government has decided to change the
base year of the Wholesale Price Index (WPI) se-
ries from 1993-94 to 2004-05. The move is aimed
at tracking changes in price level accurately.
FDI Norms for Foreign Firms
Giving scope to foreign firms to increase equity in
their Indian joint ventures, the government on
11 Feb 2009 changed FDI policy and excluded in-
direct investment through domestic companies
Copyright © 2009 | WWW.UPSCPORTAL.COM
from overall sectoral ceilings. The decision to
change the FDI policy guidelines was taken by
the Cabinet Committee on Economic Affairs
(CCEA).
According to new guideline foreign investment
through investing Indian company would not be
considered for (calculating) the indirect foreign
investment in case of Indian companies 'owned
and controlled' by resident Indian citizens and
Indian companies owned and controlled ultimately
by resident Indian citizens.
In another amendment, the CCEA decided that
government approval would be required for trans-
ferring the ownership of an Indian company that
has a joint venture with a foreign firm in any sec-
tor covered by FDI caps.
The CCEA approval of changes in FDI norms fol-
lows the recommendations of a group of minis-
ters headed by External Affairs Minister Pranab
Mukherjee.
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