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Weaponization of Space

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Last Update: Jan 2025 (Weaponization of Space)

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Weaponization of Space

This article deals with ‘Weaponization of Space‘. This is part of our series on ‘Science and Technology, which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Introduction

Weaponization of Space includes

Placing weapons in outer space or heavenly bodies
Creating weapons that will travel from Earth to attack or destroy targets in space.

Background

The weaponization of Space started in the 1960s with the Soviet HUNTER KILLER low-orbit satellite system designed for space combat.
In 1967, the Outer Space Treaty barred the placement of weapons of mass destruction (WMDs) in outer space. However, the treaty was silent on the deployment of non-WMD weapons such as space-based laser systems.
In 1983, the USA launched STAR WARS (or Strategic Defence Initiative) aimed to create Space-based missile defence system aimed at intercepting and destroying nuclear missiles.

Chinese Space Weaponization

In 2007, China successfully tested its first ASAT (Anti-satellite) missile.

Indian Developments

Mission Shakti: Mission Shakti is an Anti-Satellite Missile made by DRDO.

NATO’s Collective Security

In a 2021 summit statement, NATO leaders have expanded the use of their all-for-one, one-for-all mutual defence clause to include a collective response to attacks in space.

Outer Space Treaty, 1967

It was signed in 1967.
India is also a member of the Outer Space Treaty.

Main Provisions

Exploration & use of outer space shall be done for the benefit of all countries.
Outer space shall be the province of all mankind.
Outer space is not subject to the claim of sovereignty.
States shall not place weapons of mass destruction in outer space.
Astronauts are to be regarded as the envoys of humankind.
States shall be responsible for space activities, whether carried out by government or non-government entities.

Limitations of Treaty

The vague definition of terms like Weapons of mass destruction makes it liable for misuse.
It is a 20th-century treaty in a 21st-century digital age with cyber-digital weapons. For example, what if, through any radio wave attack, all the digital infrastructure of any state is paralysed?
Lack of a ‘Space Police’ makes it toothless to enforce the provisions.

Factors behind Weaponization of Space

Protecting Space Assets: Countries are weaponizing their space to safeguard their satellites in space against other countries’ Anti-Satellite (ASAT) missiles or space-based weapons.
Enhanced Combat Capabilities: Space-based systems provide tactical advantages like precise targeting of enemy assets.
4th Dimension of Warfare: Space is now considered the 4th dimension of warfare after land, air and water. Many countries, like China, Russia, the USA, etc, are focusing on dominating the 4th dimension of warfare, leading to increased weaponization of space.
Insufficient Existing Treaties: While the Outer Space Treaty (OST) explicitly prohibits the deployment of weapons of mass destruction in space, it does not address non-WMD weapons.

Impacts of Space Weaponization

Disturbance in Global Balance of Power: The Weaponization of space opens up a new front in space and disturbs the balance of power, triggering geopolitical tensions.
Arms Race in Space: Space Weaponization by any country results in an arms race in outer space.
Creation of Space Debris: Tests like China’s 2007 ASAT or India’s Mission Shakti in 2019 generate large amounts of space debris.
Peaceful exploration of outer space will be impacted: Placing weapons in outer space increases the risk of turning space into a battlefield, impacting exploration of outer space and research activities.

Way forward

reat Space as a Global Common: Like Antarctica, outer space should be considered a global common under international law.
Strengthen International Treaties: Update the Outer Space Treaty (1967) to include provisions prohibiting all forms of weaponization, including non-WMDs.

Juvenile Delinquency

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Last Updated: Jan 2025 (Juvenile Delinquency)

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Juvenile Delinquency

This article deals with ‘Juvenile Delinquency ’. This is part of our series on ‘Society’ which is an important pillar of the GS-1 syllabus. For more articles, you can click here.

Introduction

Juvenile delinquency, also referred to as Juvenile in conflict with law, involves individuals under the age of 18 engaging in unlawful activities.

Causes of Juvenile Delinquency

Dysfunctional Families: Broken homes, domestic violence, and substance abuse make children vulnerable to indulging in unlawful activities.
Negligent Parenting and Strict Parenting: Overly strict or neglectful parenting styles can foster resentment in children.
Breakdown of Traditional Joint Families: The breakdown of traditional joint families leads to the absence of a social control agency. In joint families, older members intervene to prevent deviant behaviour.
Corruption of Value System: Due to rapid societal changes (globalization, westernization, etc.), traditional cultural values have been diluted.
Negative impact of Social Media: The Fear of Mission Out (FOMO) compels juveniles to adopt risky behaviours to fit in.
Glorification of Crime by Media and Movies: Juveniles tend to imitate behaviours of perceived “successful” but negative role models in a phenomenon known as Anticipatory Socialization.
Subculture of Crime in Children Living in Slums: Children in such socioeconomically disadvantaged areas view criminal activities as a survival mechanism and means to escape poverty.
Lack of Adolescent Education in Educational Institutions

Consequences of Juvenile Delinquency

Loss of Nation’s Human Resources: Juveniles involved in delinquent activities are unable to contribute effectively to the economy, which could have otherwise added to the country’s demographic dividend.
Low Social Status leads to difficulty in Mainstreaming: Juveniles who come into conflict with the law are stigmatized and labelled as criminals by society, making it difficult for them to find employment or get education opportunities.
Overburdened Criminal Justice System: Juvenile crimes increase the workload on the justice system
Cycle of Crime: A juvenile engaged in small-scale theft frequently progresses to more serious offences.
Economic Costs: The state bears high costs for running reformative homes, juvenile courts, and rehabilitation centres.

Juvenile Justice (Amendment) Act

Juvenile Justice Act defines a child as a person who has not completed 18 years of age.
In 2015, it was amended to add a provision wherein a child in the age group of 16-18 years could be tried as an adult in case of heinous offences.
Heinous crime is a crime that requires imprisonment for 7 years .
The Juvenile Justice Board, consisting of psychologists and social experts, assesses whether “the crime was committed as a ‘child’ or as an ‘adult’.

Child Marriage in India

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Last Updated: Jan 2025 (Child Marriage in India)

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Child Marriage in India

This article deals with ‘Child Marriage in India ’. This is part of our series on ‘Society’ which is an important pillar of the GS-1 syllabus. For more articles, you can click here.

Introduction

Child Marriage involves the marriage of minors (below the legal age of 21 for boys and 18 for girls) that violate their rights and contribute to various social challenges.

Data regarding Child Marriage in India

According to the 2011 Census, 30.2% of all Indians were married before they turned 18.
According to the Lancet Global Health Report (2023), there is a high prevalence of Child Marriage in India, with 1 out of 5 girls and 1 out of 6 boys victim of it.
Child marriage is more prevalent in rural areas than in urban areas.
In Bihar and Rajasthan, approximately 60% of females are married as children.

Causes of Child Marriage

Poverty: Lack of education in poverty-stricken families often leads to early marriages
Growing insecurity of Girls: The increasing concerns for the safety of girls in some communities create a sense of urgency among families to marry off their daughters once they reach puberty.
Cultural Reproduction: Deep-rooted traditional practices that have persisted over generations have contributed to the perpetuation of child marriages.
Perception of Economic Liability: A girl child is seen as an economic burden, leading families to marry them off early.
Increased Dropout Ratio: A higher dropout rate among girls after primary education pushes them towards early marriages
Weak Enforcement of Legal Provisions: Despite the existence of legal frameworks such as the Child Marriage (Prohibition) Act, the act is weakly enforced.

Consequences of Child Marriage

Educational Deprivation: Child Marriage denies access to education, limiting future opportunities.
Health Impacts on Women: Child Marriage raises health risks for women, leading to higher rates of maternal mortality and anaemia.
Population Growth: Child Marriage contributes to a higher population due to increased fertility rates at a younger age.
Domestic Violence: Child Marriage amplifies instances of domestic violence.
Psychological Consequences: Child Marriage results in the prostitution of personality and psychological alienation for those involved.

Government provisions

Statutory Provisions

Child Marriage (Prohibition) Act, 2006

Marriage of boys under the age of 21 and girls under the age of 18 is illegal.
There is a provision for a Child Marriage Prohibition Officer to stop child marriages, create awareness, etc.
Additionally, the Child Marriage (Amendment) Bill of 2021 seeks to elevate the minimum age of marriage for females to 21 years.
Whoever performs, conducts or abets child marriage can be imprisoned for up to 2 years and fined up to Rs. 1 lakh.

Conventions

United Nations Convention on the Rights of Child (UNCRC): The convention emphasizes the protection of children’s rights, including the right to protection from early and forced marriages.
Universal Declaration of Human Rights: The declaration emphasizes that Marriage shall be entered only with the intended spouses’ full and free consent.
Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW): CEDAW calls for eliminating gender-based discrimination, including harmful practices like child marriage.

Policies

National Population Policy, 2000 promotes delayed Marriage for girls

Supreme Court Judgement

Society For Enlightenment and Voluntary Action v. Union of India (2024): The Supreme Court held that even fixing the marriage during childhood violates the free choice of choosing one’s partner and life path, and steps should be taken by the Parliament to ban it.

Schemes

Dhan Laxmi Scheme: The Government provides financial assistance to those marrying after the age 18.
Odisha Child Marriage Resistance Forum: Forum of Children who have resisted parental and societal pressure to get married before the legal age

SDG

SDG target 5.3 aims to ‘End the Child Marriage in girls by 2030.’
It involves a multifaceted approach encompassing awareness campaigns, legislative reforms, educational initiatives, and community engagement.

Article 13 of the Indian Constitution

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Article 13 of the Indian Constitution

This article deals with ‘Article 13 of the Indian Constitution – Indian Polity.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus . For more articles , you can click here.

Article 13

Article 13 declares that all the laws inconsistent with any Fundamental Rights shall be void.

And the LAW, according to Article 13, is

Permanent laws enacted by Parliament and State Legislatures
Temporary laws like ordinances
Statutory instruments like orders, rules, regulations and notifications
Non-legislative sources of law like customs or usage having the force of law
Although Constitutional Amendments aren’t law and can’t be challenged in the Supreme Court, the Keshavananda Bharti case pronounced that if the constitutional amendment violates the basic structure of the constitution, which includes Fundamental Rights, it can be challenged.

It has to be noted that ‘Judicial Review’ is conferred by Article 13.

Note: The pre-constitution laws are not declared invalid ab initio (from the start). They are invalid only when they are inconsistent with any of the fundamental rights.

Judicial Review

What is Judicial Review?

The term’ Judicial Review’ means the Power of a Court to review and potentially strike down an act of Legislature, Executive or Administration as unconstitutional if they are not in line with the provisions of the constitution.
The doctrine of Judicial Review has its origin in the USA in the Marbury v/s Madison case of 1803.

Judicial Review of Legislative Action in India

The Indian constitution provides for Judicial Review through Articles 13, 32, 131-136, 143, 226, and 246.
Judicial Review of Legislative Action is done using basic constitutional doctrines as listed below.
- Doctrine of Basic Structure,
- Doctrine of Pith and Substance: ‘Pith’ means ‘true nature’, and ‘Substance’ means ‘a most important part of something’. Hence, the Doctrine of Pith and Substance says that where the question arises of determining whether a particular law relates to a specific subject (mentioned in one List or another), the Court looks to the true nature and substance of the matter.
- Doctrine of Colourable Legislation: It means that whatever legislature can’t do directly, it can’t do indirectly.
- Doctrine of Severability: It means that when a part of the statute is declared unconstitutional, then the unconstitutional part is to be removed, and the remaining valid portion will continue to be valid
- Doctrine of Liberal Interpretation: The provisions of the Constitution should be interpreted liberally and broadly instead of in a narrow sense.
- Doctrine of Limitation of Stare Decisis: The Policy of the courts to stand by the precedent
- Doctrine of Eclipse: If the act violates the Fundamental Rights of citizens, the Fundamental Rights overshadow the act, making the act unenforceable.
- Doctrine of Prospective Over-Ruling: The Supreme Court can overrule its earlier judgment, but the impact will apply from the prospective effect and not retrospectively.
- Doctrine of Harmonious Construction: Provisions of the Constitution shouldn’t be interpreted in isolation. Instead, it should be read together to ensure consistency and harmony, keeping in mind the intent of the Constitution makers.

Important Cases / Judicial History of Judicial Review of the Legislative Action

AK Gopalan v. State of Madras: The Constitution is supreme, and every statute has to conform to the constitutional requirements.
Minerva Mills Case: The Judicial Review is the Basic Feature of the Indian Constitution.
Indira Gandhi v. Raj Narain (1975): Ordinary Laws aren’t subject to the Doctrine of Basic Structure, which is applied only to determine the validity of the Constitutional Amendment.
IR Coelho v. State of Tamil Nadu (2007): All Constitutional Amendments made on or after 24th April 1973 by which the Ninth Schedule is amended by inclusion of various laws therein shall have to be tested on the touchstone of Basic Features of the constitution enshrined in Article 14, 19 and 21.

Judicial Review of Administrative Action

In this case, the Court scrutinizes the entire Administrative Action and sees how it was reached. If the Court finds an Administrative Action arbitrary or irrational, it sets aside the entire action.

Delhi Development Authority v. UEE Electrical Engineering Private Limited (2004): The court held that irrationality and procedural impropriety are grounds for judicial review of administrative action.
Doctrine of Proportionality: If the Administrative Authority awards disproportionate punishment to the allegations, it remains open for judicial review.

G20 and India

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Last Updated: Jan 2025 (G20 and India)

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G20 and India

This article deals with ‘G20 and India – UPSC.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Introduction

Genesis

The G20 was established in 1999 in the backdrop of the 1997-99 Asian Financial Crisis to bring together the finance ministers and Governors of the Central Banks of the major advanced and emerging economies to discuss key issues related to global economic stability and growth.
Later, the world again faced the 2008 economic crisis. In response, it was raised to the Summit level (meeting of the Heads of State)to address the global financial and economic crisis.
Latest Summit: Rio de Janeiro, Brazil (2024)

Membership

19 countries + European Union+ African Union)
Latest Entry: In 2023 (hosted by India), the African Union (AU) was accepted as a permanent member of the G20.
G-20 has no permanent secretariat.

Objectives of G-20

Policy coordination between its members to achieve sustainable growth and global economic stability.
Promote financial regulations that reduce risks & prevent future financial crises.
To create a new international financial architecture.

Importance of G-20

G-20 members together constitute
- 85% of global GDP
- 75% of global trade
- 2/3rd of the global population
- 84% of fossil fuel emissions
Ensure Global Economic Growth and Stability: Owing to its size and strategic importance, the G20 plays an important role in setting the path for the future of global governance and economic growth.
Address Global Crisis: Previous summits have addressed the 2008 financial crisis, the Iranian nuclear program, the COVID-19 pandemic and climate change.
Global Tax Reforms: International taxation has been a regular feature of G20 deliberation since the summit’s start in 2008.
Recast Bilateral Ties: Bilateral meetings on the summit’s sidelines have occasionally led to major international agreements.
Platform to deliberate on Climate Change: Since the member countries constitute 84% of fossil fuel emissions, the platform provides a great opportunity to deliberate on the challenge of climate change, which poses an existential crisis to the global ecosystem.

Issues with G-20

Lack of Effective Power: The decisions of the G20 are not legally binding.
Lack of Transparency: The G-20 decisions are made behind closed doors, making the organization’s work non-transparent and unaccountable.
Lack of Accountability: The G20 is ‘No Charter and No Treaty Organization’ without any Permanent Secretariat, making it difficult to hold its members accountable for their actions and decisions.
Inadequate Representation: Some critics argue that the G20 does not adequately represent the global community, as it excludes many small and developing countries that may be affected by the decisions made by the group. Additionally, G20 does not include enough representation from the private sector, civil society, and non-state actors.
Contrasting Interests of the Member Countries: Partner countries have contrasting interests, such as the USA vs Russia, India vs China, etc.
Lack of Enforcement: G-20 decisions are non-binding in nature, and G-20 doesn’t have a permanent secretariat, thus reducing the group’s effectiveness.
Limited Effectiveness: Some argue that the G20 has not lived up to its potential in terms of addressing global economic issues and achieving meaningful results.

Satyendra Nath Bose

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Last Updated: Jan 2025 (Satyendra Nath Bose)

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Satyendra Nath Bose

This article deals with ‘Satyendra Nath Bose – UPSC.’ This is part of our series on ‘Science and Technology’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Introduction

Satyendra Nath Bose was an Indian physicist renowned for developing the theory of Bose-Einstein statistics and the concept of the Bose-Einstein condensate.

He hailed from the Nadia district in West Bengal and pursued his education at Presidency College, Kolkata.

Contribution 1: Bose-Einstein Statistics

It describes how a collection of non-interacting and indistinguishable particles distribute themselves among a set of available discrete energy states, at thermodynamic equilibrium.
Bose sent his findings to Albert Einstein. The statistics was extended to gas molecules by Einstein, and particles that obey the B–E statistics principle are referred to as “Bosons”(named after S. N Bose). Bosons are fundamental articles that have integer values of spin (0, 1, 2, etc.). E.g. Photon, Gluon, etc.

Contribution 2: Bose-Einstein Condensates (BEC)

At extremely low temperatures (near 0 Kelvin or -273.15 Celsius), a large fraction of bosons can occupy the same lowest-energy quantum state and become indistinguishable from each other, forming a unique state of matter (e.g., superfluid helium or ultra-cold atomic gases). BEC is referred to as the ‘fifth state of matter.’
Properties of BEC include:
1. Superfluidity: Bose-Einstein Condensates (BEC) have zero viscosity and can flow without resistance.
2. Superconductivity: Bose-Einstein Condensates (BEC) have zero resistance, leading to optimal conductivity.
3. Coherence: All particles in the BEC are in the same quantum state, behaving as a single entity.
Bose-Einstein Condensates has important complications and usage in areas of
- Quantum Computing
- Superconductivity
- Precision Measurements
- Sensing Technologies
- Atom Lasers

Side Topic: God Particle

The Higgs Boson, also known as the God Particle, was discovered using scientific principles rooted in Bose-Einstein statistics and the concept of BEC.

R&D in Agriculture

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Last Updated: Jan 2025 (R&D in Agriculture)

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R&D in Agriculture

This article deals with ‘R&D in Agriculture.’ This is part of our series on ‘Economics’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Why to focus on R&D?

Return on Investment: The Economic Survey (2021-22) explicitly highlighted the correlation between spending on agri-R&D and agricultural growth. Every rupee spent on agri-R&D yields much better returns (11.2), compared to returns on every rupee spent on fertilizer subsidy (0.88), power subsidy (0.79), etc.
Food Security: R&D helps in the development of high-yielding crops and thus achieve food security.
Climate Smart Crops: R&D can help create climate-smart crops that can survive extreme climate.
Help Small Farmers: R&D is helpful in the Indian context as it can help to create new technologies designed to help small and marginal farmers.

Schemes

Bodies

Indian Council of Agricultural Research (ICAR): ICAR is an autonomous organization for co-ordinating and guiding research & education in agriculture, including animal sciences, horticulture and fisheries in the country.
State Agricultural Universities (like Punjab Agricultural University) are dedicated to the development of agricultural technologies.

Krishi Vigyan Kendra (KVK)

KVKs are the institutions at the district level aimed at

On-farm testing to assess the adaptability of new agricultural technologies
Frontline Demonstrations of the latest agricultural technologies to the farmers
Provide Advisory Services on various aspects like cropping patterns, pest control, post-harvest technology, etc.
Production of good quality seeds & planting materials for distribution to the farmers.

Issues with R&D in Agriculture

R&D in Agriculture is facing problems in India because

1. Lack of Funds

The private sector doesn’t contribute much investment in agriculture research, and government funding for R&D is decreasing considerably. This funding needs to be increased.
Allocation for agri-R&D in Budget 2021 was just Rs 8,514 crore. It is even lower than that of a single private global company like Bayer, whose annual spending on agri-R&D is almost Rs 20,000 crore.

2. Problem with ICAR

The problem with ICAR is that a single body plays several roles, from education to research to extension. Hence, it has become the jack of all trades but the master of none.

3. Problem with Agriculture Universities

The agriculture universities have been plagued & not able to do much because of
- Resource crunch
- Difficulty in attracting talented faculty
- Limited linkages and collaborations with international counterparts
- Weakening of the lab-to-land connect
- Lack of innovation

4. Low-Quality Research

The R&D sector is suffering from ‘technology fatigue’, i.e., no innovative invention has been done by the scientific community in the previous two decades.

5. Cereal Centric Research

Indian agriculture research has become too much ‘cereal-centric’. Instead, Indian farmers must focus on pulses, oilseeds, horticulture and animal husbandry.

What can be the way ahead?

Increase expenditure on R&D in Agriculture by the Government sector.
Kremer’s HIV Vaccine Idea / Government Pull System of Research: Private research in crops grown at a small scale can be boosted by offering the winner proportionately large cash, but the IPR for that innovation is transferred to the government.
Address the regulatory lacunae in GM Crops technology: Pass the BRAI Act (Biotechnology Regulatory Authority of India) to remove the issues associated with the present regulatory framework under the aegis of the Genetic Engineering Appraisal Committee (GEAC).

Extension Services (Agricultural Inputs)

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Last Update: Jan 2025 (Extension Services (Agricultural Inputs))

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Extension Services (Agricultural Inputs)

This article deals with ‘Extension Services (Agricultural Inputs).’ This is part of our series on ‘Economics’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Introduction

Extension Services are expert services provided to the farmers that can help improve productivity by delivering timely advisory services to farmers to adopt best practices, technology, meet with contingencies, market information etc.

But Problems

In India, there is 1 Extension worker per 800-1000 farmers.
60% of farmers don’t get any service from Extension workers, according to the NSSO survey.
Farmers depend on the progressive farmer of their area or marketing agent of some company for advice on the product they should use. But the problem is they will suggest only those products which give maximum profits.
There is no lab to farm connectivity.

Steps taken by the Government

1. Various Apps started

These include

mKisan
PUSA Krishi App

2. Kisan TV

Government can’t send the person to each village, but each village has TVs. Hence, the Government of India started Kisan TV in 2015.

3. Pradhan Mantri Kisan Samridhi Kendra (PMKSK)

PMKSK works under the Ministry of Chemicals and Fertilizers (announced in 2022)
The program aims to convert existing Fertilizer shops into Pradhan Mantri Kisan Samridhi Kendra that will act as a “One Stop Shop” for all agriculture-related inputs (like fertilizers, seeds, insecticides, pesticides, etc.) and other agricultural services.

4. AgriClinics and Agribusiness Centres

Agriculture Graduates set these up to provide paid advice to farmers on various issues. The Agriculture Ministry and NABARD support this scheme.

5. Krishi Vigyan Kendras

Krishi Vigyan Kendras are set up by the Indian Council of Agricultural Research (ICAR) and Agricultural Universities for frontline demonstration of agriculture technologies on the field, updating farmers about modern agriculture technologies and providing advisories to farmers using ICT.

6. Helplines

Kisan Call Centre schemes
SMS portal for farmers

7. Student Ready

Under this scheme, the village students are given Agro education.

8. Krishi Unnati Mela

Fairs organized by ICAR to demonstrate new agricultural technologies to farmers.

Farm Insurance

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Last Update: Jan 2025 (Farm Insurance)

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Farm Insurance

This article deals with ‘Farm Insurance.’ This is part of our series on ‘Economics’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Main problems with previous Farm Insurance Schemes

Low Penetration: Only 22% of agricultural land was covered under crop insurance in 2014.
Low Sums Insured (SI): The sums insured (SI) were low. It was based on the cost of inputs rather than prospective income.
High Premium: Huge premium was charged. It was as high as 10% of the sums insured.
Delayed claims settlement: Claims used to lie unclaimed till six months & beyond.
Low Literacy: Farmers don’t know about these schemes and their benefits.
Inadequate Infrastructure: Absence of infra to measure data accurately at farm level.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

PMFBY has been formulated according to the One Nation–One Scheme theme. It replaced the existing two schemes (i.e. NAIS (National Agricultural Insurance Scheme and Modified NAIS) by removing their inherent drawbacks and incorporating the best features of all previous schemes.

Features of PMFBY

Features of Pradhan Mantri Fasal Bima Yojana (PMFBY)

Target: To bring at least 50% cropped area under Insurance Cover.
PMFBY removes any artificial capping of the Sums Insured(SI). The SI will be calculated by multiplying the MSP of a crop by the average seven-year yield for the particular village panchayat area where it is grown.
Uniform premium: Farmers will pay a uniform premium of
- 2 per cent for all Kharif crops
- 1.5 per cent for all Rabi crops
- 5 per cent for annual horticultural and commercial crops.
Governments to fully meet the gap between the actuarial premiums and the rates payable by farmers at Union and State levels.
Use of technology: Government will encourage the use of technology, especially mobiles and remote sensing, for quick estimation and early settlement of losses.
The scheme is extended to cover post-harvest losses as well.
In 2018, the Centre allowed States to set up their own insurance companies for implementing Pradhan Mantri Fasal Bima Yojana (PMFBY). The move comes after several requests from states.

Working of PMFBY

Increase in Insured Area: The area insured has reached 610 lakh ha (2023-24), insuring 5.5 crore farmers. PMFBY has become the largest crop insurance scheme in the world in terms of farmer enrolments and the third largest in terms of insurance premiums. It fares well in this regard.
Methodology of Risk Assessment: Earlier, risk assessment was done at the district level, which was later changed to the block level. The Sum Insured (SI) is now measured at the Village level, which is closer to reality.
During the arduous seasons of 2017, 2018 and 2019 marred by weather extremities, the scheme proved to be a decisive factor in securing the livelihoods of farmers, wherein the claims paid ratio in several states averaged more than 100 per cent against the gross premium collected. For example, the States of Chhattisgarh (2017), Odisha (2017), Tamil Nadu (2018), and Jharkhand (2019) received 384 per cent, 222 per cent, 163 per cent and 159 per cent of claims ratio against a gross premium.
To improve the efficacy, the government has started various initiatives under PMFBY. These include
1. DigiClaim: All the claims are worked out through the National Crop Insurance Portal (NCIP).
2. CROPIC i.e. Collection of Real-Time Observations and Photo of Crops: Collect periodic photographs of crops during their life cycle. These photographs validate sown crops and assess crop damage.
3. Yield Estimation Based on Technology (YES-Tech): It is a technology-based yield estimation mechanism.
4. Weather Information and Network Data Systems (WINDS): It aims to develop hyper-local weather data by setting intense network of Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the Panchayat level.
Government has also approved the creation of the Fund for Innovation and Technology (FIAT) with the corpus of Rs. 824 crore to fund the technological innovations like YES-TECH, WINDS etc. and other research and development activities.

But Issues

The critical factor of analyzing the efficacy of an insurance scheme is the ability to settle its claims quickly. PMFBY failed in this aspect as it took several months to pay compensation to the farmers.
There are allegations of profiteering by Insurance Companies.
It is alleged that most of the increase in insured areas is due to mandatory insurance for loanee farmers. According to the Public Account Committee Report (2023), the percentage of non-loanee farmers is negligible. Additionally, there is poor awareness of the scheme among small and marginal farmers.
PMFBY does not cover tenant farmers.
No governance reforms have been initiated. This scheme is also implemented with the help of rusted old machinery consisting of Patwaris and revenue officers.
Lack of farmer awareness: According to the CAG, out of 5,993 farmers surveyed, only 37% were aware of the schemes.
One-size fits all approach: All the farmers in the country have been treated as similar without any option to choose an insurance that meets the specific needs of their region.
No provision for competitive pricing: As per the scheme guidelines, every cluster has a specific insurance company selling insurances, creating infrastructure and manpower for three years. Lack of competition creates a monopoly over the scheme.

Due to the above issues, various states are replacing PMFBY with their own insurance schemes. E.g., Jharkhand has started its own insurance scheme (in 2021) called Kisan Fasal Rahat Yojana, which will be implemented by Jharkhand’s Department of Agriculture, Animal Husbandry and Co-operative. Gram Sabha has been assigned a major role in accessing crop loss.

Beed Model of PMFBY

The Beed is drought prone district in Maharashtra. The private insurance companies hesitate to do agricultural insurance in the district because many times the insurance claims paid is more than premium collected.

The government has come up with novel solution under which Maharashtra Government has roped in Agriculture Insurance Corporation (AIC) under which the private insurance company will insurance claims upto 110% of premium. On the other hand, if the insurance claims are lesser than 80% of premium, the private insurance company will share part of its profit with AIC.

Agro-Credit

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Last Updated: Jan 2025 (Agro-Credit)

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Agro-Credit

This article deals with ‘Agro-Credit.’ This is part of our series on ‘Economics’ which is an important pillar of the GS-3 syllabus. For more articles, you can click here.

Introduction

Agri credit is an essential input for agriculture to improve productivity. Access to institutional credit enables the farmer to enhance productivity by investing in machinery, purchasing variable inputs like fertilizers, quality seeds, and manure, and providing funds until the farmer receives payment from the sale of produce.

Every 1% increase in agricultural credit produces 0.29% increase in agricultural GDP and consequently aiding in increased income of farmers.

Issues with Agro-Credit

The predominance of informal sources: 44 % of agro finance comes from money lenders. These money lenders are highly exploitative and charge exorbitant rates.

Agro-Credit from Formal and Informal Sector

Although Short Term Loan quantity has increased, Long Term Investment in agro infrastructure has decreased both by private & public sectors.
Regional Disparity: The coverage is meagre in the north-eastern and eastern regions of the country.
Agri credit / Agricultural loans are not used for the stated purpose. Primarily, they are used for marriage & consumption purposes by the farmer.
Credit for Small Farmers: Small and marginal farmers are not covered by banks and other institutional creditors.
Banks indulge in coercive actions for repayment, which leads to increased instances of farmer suicides.

Steps taken by the Government

Steps taken by government in giving loans to farmers easily

1. Priority Sector Lending Norms for Banks

Banks are mandated to give 10% of their loans to Agriculture & Allied Sector, and 8% of their loans should be explicitly given to Marginal and Small Farmers.
Target for 2023-24 is Rs. 20 lakh crore.

2. Modified Interest Subvention Scheme (MISS)

Under this, loans up to ₹ 3Lakh are given to the farmer at an interest rate of 7% & if his credit history is good, then 5% additional subvention is provided by the government, making the effective interest rate of 2%

3. Kisan Credit Card (KCC) Scheme

KCC is a smart debit cum credit card for farmers. The farmer can later pay credit at a very low rate of interest.
It was started in 2012. In 2018, the facility was also extended to farmers involved in fisheries and animal husbandry.
The scheme aims to reduce farmers’ dependence on the informal banking sector for credit, which can be very expensive and suck them into a debt spiral.
Recent reports suggest high default rates on KCCs, which are becoming a significant source of non-performing assets (NPAs) for banks despite its various benefits.
As of 2024, banks have issued 7.5 KCCs.

4. Negotiable Warehouse Receipt

Under this scheme, the farmer can deposit his produce in a warehouse & get a warehouse receipt in return. The farmer can “mortgage” this warehouse receipt to a banker to get loans or trade at Commodity exchange.
Hence, these Negotiable Warehouse Receipt helps the farmer get a loan for the next cropping season on receipt & sell his produce at a later date when he receives a favourable price of his product.

5. Loan Waivers

Various state governments are giving loan waivers to the farmers.
But the efficacy of such loan waivers and their impacts on the government’s finances is highly debated.

6. NABARD Initiatives

NABARD has started various initiatives for the farm sector like
1. NABARD refinances Agro Loans.
2. NABARD operates Rural Infrastructure Development Fund.

7. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

The Agriculture Ministry runs this scheme.
Under this, income support of ₹6,000 / annum is given to all farmers in three instalments of ₹ 2,000 each.

The measures have reduced the share of non institutional credit from 90 per cent in 1950 to 23.40 per cent in 2021-22. As of 31 January 2024, the total credit disbursed to agriculture amounted to ₹ 22.84 lakh Crore