RAJYA SABHA TV & ECONOMIC 

AND POLITICAL WEEKLY 

(SEPTEMBER 2020)
S. No.  Topics  Page No. 
01.  INDIA JAPAN AUSTRALIA SUPPLY  2 
CHAIN INITIATIVE 

02.  NATIONAL DIGITAL HEALTH 4 

MISSION

03.  NATIONAL RECRUITMENT  6 

AGENCY 
04.  EXPORT PREPAREDNESS INDEX  8 
05.  EASE OF DOING BUSINESS  11 
RANKINGS 
06.  NEED FOR AUTONOMOUS  13 
FOREIGN POLICY ON CHINA 
07.  MACROECONOMICS OF A  15 
LOCKDOWN 
08  FINANCING THE RIGHT TO  17 
EDUCATION 
 
 
 
 
 
 
 
Webinar 
Link:​https://attendee.gotowebinar.com/register/7746031240505641740  
Note: Please open the above link using Google Chrome. 
   
 RSTV  

1. INDIA JAPAN AUSTRALIA SUPPLY CHAIN INITIATIVE 

 
Context  
Japan,  India  and  Australia  to  launch  an  initiative  to  achieve  supply  chain  resilience 
in the Indo-Pacific region.  
 
Background  
● The  Supply  Chain  Resilience Initiative (SCRI) is proposed as a trilateral approach 
to  trade,  with  India  and  Australia.  It  could  also  potentially  involve  other  Asian 
and Pacific Rim nations in the later years. 
● It  is  an  approach  wherein  a  country  instead  of  being  dependent  on  just  one  or  a 
few nations has diversified its supply risk across a range of supplying nations. 
 
Why Japan mooted for Supply Chain Resilience Initiative 
● China  accounts  for  around  24%  of  Japan’s  total  imports  and  due  to  COVID-19, 
China  had  to  shut  down  factories  in  regions  and  this  had  also  impaired 
economic activity in Japan. 
● The  ongoing  U.S.-China  trade  tensions  are  a  cause  of  concern  for  Japan,  as 
Japan’s  growth  would  be  affected  if  the  U.S.  and  China  move  towards  creating 
their own separate economic zones. 
 
Need for supply chain resilience 
● The  move  is  to  reduce  trade  dependence  on  China  -  a  major  trading  partner  for 
all three nations. In an online meeting. 
● Many  nations  dependent  on  China  for  trade  have  suffered  from  supply 
disruptions, highlighting the need for diversification.  
● They  ​reaffirmed  their  determination  to  take  a  lead  in  delivering  a  free,  fair, 
inclusive,  non-discriminatory,  transparent,  predictable  and  stable  trade  and 
investment environment and in keeping their markets open. 
● Due  to  Covid-19  pandemic  and  the  recent  global-scale  changes  in  the  economic 
and  technological  landscape,  It  was  the  need  to enhance the resiliency of supply 
chains in the Indo-Pacific region .  
● Also  the  diversification  of  supply  chain  is  critical  for  managing  the  risks 
associated with supply of inputs including disciplining price volatility. 
● Already,  India,  Japan  and  Australia  make  up  the  Quadrilateral  Security 
Dialogue,  or  Quad,  along  with  the  US,  to  strengthen  national  security 
consultation. 
 
Why did India include the Supply​ Chain Resilience Initiative? 
● Japan  is  the  fourth-largest  investor  in  India  with  cumulative  foreign  direct 
investments accounting for 7.2% of inflows in the period between 2000-2020. 
● India  may  be  ready  for  dialogue  on  alternative  supply  chains  which  indirectly 
aims  to  keep  China  out  of  such  supply  chains,  due  to  the  present  border 
situation.  
● Also  Japan  sees  India  as  an  attractive  option  for  potential  investors  both  as  a 
large market base and as a manufacturing base with low cost labour. 
Challenges for India 
● It would be impractical for India to suddenly cut in trade links with China.  
● China  accounts  for  a  large  share  of  imports  into  India  standing  at  around  14.5% 
in 2018. 
● Also  Chinese  supplies  dominate  segments  such  as  pharmaceuticals,  automotive 
parts, electronics, shipping, chemicals and textiles sector of the Indian economy.  
● In electronics, China accounts for 45% of India’s imports. 
   
2. NATIONAL DIGITAL HEALTH MISSION 
 
Context  
On  August  15, Prime Minister Narendra Modi announced plans to give every Indian 
citizen  a  unique  health  ID  as  part  of  the  National  Digital  Health  Mission  (NDHM), 
which  will  digitise  health  records  as  well  as  provide  a registry of doctors and health 
facilities.  
It  has  been  rolled  out  on a pilot mode in six Union Territories. It comprises six areas, 
including  health  ID,  DigiDoctor,  health  facility  registry,  personal  health  records, 
e-pharmacy, and telemedicine. 
 
Background  
● The  Ministry  of  Health and Family Welfare, Government of India has formulated 
the  National  Digital  Health  Mission  (NDHM)  which  aims  to  provide  the 
necessary support for integration of digital health infrastructure in the country.  
● It  started  from  the  National  Health  Policy,  2017  which  intends  to  digitize 
healthcare in India. 
● Also,  National  Health  Authority  (NHA)  has  been  authorized  with  the  role  of 
designing  strategy,  building  technological  infrastructure  and  implementation  of 
“National Digital Health Mission”. 
 
Details of the Mission  
● It  has  six  key  building  blocks  or  digital  systems  namely  HealthID, 
DigiDoctor,Personal  Health  Records,  Health  Facility  Registry,  e-Pharmacy  & 
Telemedicine. 
● It  seeks  to provide a unique health ID to each citizen who wishes to have one and 
also on-board the healthcare service provides. 
● It  will  have  an  online  database  of  doctors  (DigiDoctor)  and  personal  health 
records (PHRs). 
 
Digital Systems Associated with the Mission  
 
Health ID 
● It  will  be  used  to  uniquely  identify  persons,  authenticate  them,  and  report  their 
health  records  (only  with  the  informed  consent  of  the  patient)  across  multiple 
systems and stakeholders. 
● It  is  created  by  using  basic  details  and mobile number or Aadhaar number and it 
will be unique to a person. 
● It  can  be  obtained  with  the  support  of  healthcare  providers  who  are  in  the 
national  health  infrastructure  registry  or  it  can  be  obtained  by  self-registration 
from a mobile or a web application. 
● Presently,  it  is  announced  in  Andaman  &  Nicobar  Islands, Chandigarh, Dadra & 
Nagar Haveli and Daman & Diu, Ladakh, Lakshadweep and Puducherry. 
Digi-Doctor​: A comprehensive repository of all doctors to practice or teach modern/ 
traditional systems of medicine.  
 
Health  Facility  Registry  (HFR)​:  It  is  a  comprehensive  repository  of  health  facilities 
of the country across different systems of medicine. 
Personal  Health  Records  (PHR)​:  It  is  an  electronic  record  of  health-related 
information  of  an  individual  that  conforms  to  nationally recognized interoperability 
standards  and  that  can  be  drawn  from  multiple  sources  while  being  managed, 
shared, and controlled by the individual. 
Electronic  Medical  Records​:  It  is  a  digital  version  of  a  patient’s  treatment  history 
from a single facility.  
 
Significance of the Mission  
● It  aims  to  empower  the  citizens  and  make  the  health  care  system  more 
patient-centric and will lead to convenience for the patient. 
● It  can  ensure  the  delivery  of  health  services  to  a  large  population  at  affordable 
costs in smaller towns and remote locations. 
● The  digital  data  will  also  help  in  providing  prompt  and  accurate  treatment, 
especially  in  emergencies  by  avoiding  repetition  of  medical  history  taking  and 
unwarranted tests. 
● It  will  help  improve  access  by  providing  a  big  boost  to  consultation  through 
telemedicine  with  specialist  doctors  for  patients  in  smaller  towns  and  remote 
locations. 
● It will lead to quality care and better access to healthcare facilities and doctors. 
● It provides opportunities for innovation in the healthcare sector. 
● will  help  reduce  the  gap  among  stakeholders,  such  as  doctors,  hospitals  and 
other  healthcare  providers,  by  connecting  them  in  an  integrated  digital  health 
infrastructure. 
● It  will  contribute  significantly  to  achieve the goals of National Health Policy 2017 
and the SDGs related to health.  
 
Challenges of the Mission  
● The  low  penetration  of  digital  technology  in  rural  areas  will  be  a  challenge  in 
ensuring the potential of inclusivity and accessibility offered by NDHM. 
● Dealing  with  ethical  issues,  breach  of  privacy,  and dealing with social stigma are 
significant challenges to the mission.  
● The  absence  of  a  robust  public  health  infrastructure  will  rob  the  NDHM  of  its 
potential benefits. 
● Currently,  total  health  expenditure  (both  private  and  public)  in  India  is  just  3.6 
per  cent,  while  public  spending  on  health  is  just  above 1 percent of the country’s 
GDP,  which  is  low  compared  to  the  countries  that  have  some  of  the  best  digital 
health systems in the world. 
● Despite  Health ID being voluntary for citizens but time is required to have a trust 
and behavioral change.  
 
Conclusion  
● Digital  technology  can  be  a  game  changer  in  the  health  care  sector.  The  focus 
should  be  in  its  implementation,  data  privacy  and  confidentiality.  The  idea  of 
implementing  the  National  Digital  Health  Mission  on  a  pilot  basis  is  a  good 
decision and on this basis it should be applied in the whole country. 
● The  decision  has immense potential to change India’s health infrastructure, while 
also raising concerns over privacy and efficient implementation. 
   
3. NATIONAL RECRUITMENT AGENCY 
 
Context  
 
Why has the Government decided to set up a National Recruitment Agency? 
● With  over  3  crore  candidates  applying  for  almost  1.25  lakhs  vacancies  in 
Government sector each year, the expenses that the recruiting bodies have to bear 
is quite high. 
● A  a  single  exam  will  resolve  this  issue  and  reduce  not  just  the  candidate’s 
expenses but also the conducting body’s expenses 
● It will encouraging female candidates to fill in forms for these Government jobs 
● With  this,  the  Government  may  also  get  better  chances  of  increasing the number 
of vacancies and raising public employment. 
 
About National Recruitment Agency (NRA) 
● The  NRA  will  be  a  multi-agency  body  that  will  conduct  a  Common  Eligibility 
Test  (CET)  to  screen/shortlist  candidates  for  the  Group  B  and  C  (non-technical) 
posts. 
● The  NRA  will  have  representatives  of  the  Ministry  of  Railways,  Ministry  of 
Finance/Department of Financial Services, the SSC, RRB & IBPS. 
● It  is  envisioned  that  the  NRA  would be a specialist body bringing state-of-the-art 
technology and best practices to the field of Central Government recruitment. 
 
National Recruitment Agency: Its Composition and Members 
It shall comprise: 
● A  Chairman  of  the  position  of  Secretary  to  the  Government  of  India  will  be 
appointed to head the body 
● Senior  Members  from  Railway  Recruitment  Board  (RRB),  Staff  Selection 
Commission  (SSC)  and  Institute  of  Banking  Personnel  Selection  (IBPS)  shall  be 
included in the committee 
● Representatives  from  the  Ministry  of Financial Services and Ministry of Railways 
may also be appointed 
 
How will the National Recruitment Agency benefit government job aspirants? 
● Aspirants  need  to  apply  only  once  for  a  single  or  multiple  recruitment  exams  in 
various departments and take the Common Eligibility Test (CET).  
● CET score will be valid for 3 years. 
● No  restriction  on  the  number  of  attempts  to  appear  in  the  CET subject as per the 
upper age limit.  
● Relaxation  in the upper age limit shall be given to candidates of SC/ST/OBC and 
other categories as per the extant policy of the Government. 
● The  exam  would  be  held  online  in  12  languages  initially  with  plans  to  add  all 
languages in the Eighth Schedule of the Constitution over time. 
● Based  on  the screening done at the CET score level, final selection for recruitment 
shall  be  made  through  separate  specialised  Tiers  (II,  III,  etc.)  of  examinations, 
which shall be conducted by the respective recruitment agencies. 
● Candidates  can  choose  their  choice  of  centres  and  also  they  will  be  given  an 
option to schedule their own tests at their choice centres. 
Other Benefits  
● A  standard  recruitment  process  under  IBPS,  RRB  or  SSC  s  will now be restricted 
to a single exam which will take lesser time in completing the process. 
● Until  now,  many  cases  where  candidates  had  to  skip  one  exam  because  of  clash 
in  exam  dates  have  been  reported,  which  shall  now  be  sorted  with  one  single 
examination. 
 
Concerns associated  
● There  is  a  need  to  fill  unoccupied  vaccines,  which  are  around  7  till  March  2018, 
according to government sources. 
● With  the  government  emphasizing  on  privatisation  there  may  be  fewer 
government jobs on offer in the future.  
● A  long  term  commitment  is  required  from  the  government  to  raise  the 
employment in order to curtail the need of the aspirants. 
 
Conclusion  
● The  test  score  could  also  be  used  by  State  governments  and  this  could  help 
reduce state expenditure on the conducting of multiple exams. 
● The  private  sector  would  also  be  allowed  to  use  the  test  as  a  reference  for 
employment  functions  in  the  future  and  this  would aid employment avenues for 
the students. 
   
4. EXPORT PREPAREDNESS INDEX 
 
Context  
Export  Preparedness  Index  2020  to  evaluate States’ potential and capacities has been 
released by the NITI Aayog in partnership with the Institute of Competitiveness. 
 
About the Export Preparedness Index 2020  
● It  is  the  first  report  to  examine  the  export  preparedness  and  performance  of 
Indian states. 
● EPI  intends  to  identify  challenges and opportunities; enhance the effectiveness of 
government policies; and encourage a facilitative regulatory framework. 
● It  promotes  healthy  competition  among  states  and  UTs  to  work  on  parameters 
for  promoting  the  country’s  exports,  which  is  one  of  the  key  indicators  for 
boosting economic growth. 
 
The structure of the EPI: 
● 4 pillars –Policy; Business Ecosystem; Export Ecosystem; Export Performance. 
● 11  sub-pillars  –Export  Promotion  Policy;  Institutional  Framework;  Business 
Environment;  Infrastructure;  Transport  Connectivity;  Access  to  Finance;  Export 
Infrastructure;  Trade  Support;  R&D  Infrastructure;  Export  Diversification;  and 
Growth Orientation. 
 

 
 
For  a  country  as  vast  and  as  diverse  as  India  is,  the  states  had  to  be  categorized  in 
accordance  to  a  host  of  factors:  their  sizes  and  most  importantly  their  geographical 
outreach. 
 
 
  
 
Key findings of the report 
● Gujarat has topped the Export Preparedness Index 2020 followed by Maharashtra 
and Tamil Nadu. 
● The  other  states  that  have  made  it  to  the  top  10  include  Rajasthan,  Odisha, 
Telangana, Haryana, Chhattisgarh, Karnataka and Kerala. 
● The  coastal  states  have  emerged  as  the  best  performers,  with  six  out  of  eight 
coastal states featuring in the top 10 rankings. 
● Among  the  Himalayan  states,  Uttarakhand  is  the  highest,  followed  by  Tripura 
and Himachal Pradesh. 
● Across  the  Union  Territories,  Delhi  has  performed  the best, followed by Goa and 
Chandigarh. 
● The  average  score  of  Indian  states  in  sub-pillars  of  Exports  Diversification, 
Transport Connectivity, and Infrastructure (three sub-pillars) was above 50%. 
 
Challenges faced by India’s Export Sector 
Based  on  the  findings  of  the  report,  export  promotion  in  India  faces  three 
fundamental challenges: 
● Intra- and inter-regional disparities in export infrastructure. 
● Poor trade support and growth orientation among states. 
● Poor R&D infrastructure to promote complex and unique exports. 
 
Key strategies to address these challenges 
● A  joint  development  of  export  infrastructure,  strengthening  industry-academia 
linkages  and creating state-level engagements for economic diplomacy is the way 
forward. 
● These  strategies could be supported by revamped designs and standards for local 
products. 
● Innovating  tendencies  to  provide  new  use  cases  for  local  products  must  be 
harnessed with adequate support from the Centre. 
● The  best  practices  of  the  states  should  be  regularly  documented  and 
disseminated to promote peer-to-peer learning under cooperative federalism. 
● The  focus  here  is  to  identify  the drivers and the bottlenecks for each state in their 
scorecard  further,  with  states  now  engaging  more  directly  with  international 
forums  of  business,  it  would  be  necessary  to  create  capacity  across  the  board  to 
ensure regional disparities do not continue to exist in the country. 
Conclusion: 
● To  achieve  the  target  of  making  India  a  developed  economy  by  focusing  on 
‘Atma  Nirbhar  Bharat’,  there  is  a  need  to  increase  exports  from all the states and 
union territories. 
● Celebrating  innovative  policymakers,  facilitating linkages, building capacity, and 
transitioning  to  more  complex  and  unique  products  depending  on  the  inherent 
competitive  advantages  of  the  states  would  be  the  way  forward  for  export 
promotion in the years to come. 
   
5. EASE OF DOING BUSINESS RANKINGS 
 
Context  
● Ease  of  Doing  Business  (EODB)  is  a  joint  initiative  by  the  Department  for 
Promotion  of  Industries  and  Internal  Trade  and  the  World  Bank  to  improve  the 
overall business environment in the States. 
 
How Rankings are done? 
● Ranking  of  States  based  on  the  implementation  of  Business  Reform  Action  Plan 
which was started in the year 2015. 
● The  Business  Reform  Action  Plan  2018-19  includes  180  reform  points  which 
covers  12  business  regulatory  areas  such  as  Access  to  Information,  Single 
Window System, Labour, Environment, etc.  
● The  objective  of attracting investments and increasing the Ease of Doing Business 
in  each  State  was  achieved  by  introducing  an  element  of  healthy  competition 
through  a  system  of  ranking  states  based  on  their  performance  in  the 
implementation of Business Reform Action Plan.  
● These  rankings  represent  the  ease  of  doing  business  in  terms  of  increased 
transparency,  efficiency and effectiveness of the government regulatory functions 
vis-a-vis the business enterprises. 
● Andhra  Pradesh  has  topped  the  rankings  followed  by  Uttar Pradesh, Telangana, 
Madhya  Pradesh  and  Jharkhand.  Tripura,  Sikkim, Odisha were among the worst 
performers. 
The top ten states under State Reform Action Plan 2019 are: 
1. Andhra Pradesh 
2. Uttar Pradesh 
3. Telangana 
4. Madhya Pradesh 
5. Jharkhand 
6. Chhattisgarh 
7. Himachal Pradesh 
8. Rajasthan 
9. West Bengal 
10. Gujarat 
 
Reasons for better performance by states  
● Uttar  Pradesh  made  into  the  top  ranks  of  states  that  have  become  better 
destinations  to  do  business  in  2019,  based  on  its  ability  to  better  implement  a 
range  of  reforms  which  ranges  from  single-window  clearances to easier access to 
information.   
● States  were  ranked  based  on  their  performance  on  180  reforms  initiatives  across 
45  business  regulatory  areas,  including  easy  access  to  information,  paying  taxes, 
obtaining  utility  permits,  contract  enforcement,  labour  and  construction  permit 
enablers, single-window approval systems and land administration. 
● Also  states  have to upload their respective one performance “exclusively” to user 
feedback, which is one of “major changes” in the current rankings. 
 
 
Conclusion  
● The  aim  of  Ease  of  Doing  Business is to create a conducive business environment 
by  streamlining  regulatory  structures  and  creating  an  investor-friendly  business 
climate by cutting down red tape. 
● India  being  a  federally  structured  nation,  States/UTs  play  a  vital  role  in 
promoting  investor  confidence.  The  process  of  assessing  State  level  reforms  has 
been  a  journey  of  evolution  as  the  process  has  matured  with  the  passage  of time 
and is an ongoing process. 
   
 EPW  
 
6. NEED FOR AUTONOMOUS FOREIGN POLICY ON CHINA 
 
Undemarcated borders 
● The  alignment  of  the  LAC  has  never  been  agreed  upon,  and  it  has  neither  been 
delineated nor demarcated. 
● There is no official map in the public domain that depicts the LAC.  
● The  current  understanding  of  the  LAC  reflects  the  territories  that  are, at present, 
under the control of each side, pending a resolution of the boundary dispute. 
● The unsettled border issue is a bone of contention between India–China relations.  
● It  erupts  every  few  years  which  brings  both  countries  on  the  verge  of  military 
confrontation, followed by temporary peace restored through negotiations. 
 
Failure of protocols and agreements 
● Both  India  and  China  have  agreed to protocols in 2005 and 2013 that describe the 
rules of engagement to handle border stand-offs. 
● India  and  China  signed  the  landmark  Border  Peace  and  Tranquility  Agreement 
(BPTA) in 1993, an agreement that recognised the LAC.  
 
Chinese Concerns  
● Chinese  hardliners  view  India  as  a  competitor  and  challenger  to  China’s  rise  to 
global dominance and suggest a hard stand with respect to India. 
● India  is viewed as an ally of the U.S by China, where as United States (US) is seen 
as  threat  to  china,  as  it  is  challenging  China’s  territorial  claims  in  the  South 
China  Sea,  interfering  in  Hong  Kong  and  Taiwan,  and  launching  a  concerted 
campaign  on  the  alleged  atrocities  against  Uighur  Muslims  in  Xinjiang  and 
Tibetans by the Chinese state. 
 
Reasons for Attack on India by China  
● The  recent  Chinese  preemptive  actions  in  the eastern Ladakh sector  is due to the 
fear  that  the  US  may  use  India  to  employ  the  “forward  policy”  in  the  border 
areas to embarrass the Communist Party of China (CPC) and its leadership.  
● Chinese  hardliners  view  India  as  a  competitor  and  challenger  to  China’s  rise  to 
global dominance and suggest a hard stand with respect to India. 
 
Advantage over China  
● In  2014,  the  Chumar  area  flared  up  and  continued  even  when  Chinese President 
Xi Jinping’s visit to India was underway.  
● Indian  Army  enjoyed  a  geographic advantage over the People’s Liberation Army 
(PLA),  which  gave  the  Indian  negotiators  an  edge  over  their  Chinese 
counterparts when they sat down to de-escalate the situation.  
● Recently,  EAM  of  India  wants  to  de-escalate  the  deteriorating  situation  in 
Ladakh,  only  after  the  military  provided  India  the advantage by capturing some 
crucial heights in south Pangong Tso lake area. 
  
 
 
Conclusion  
● Strained  China-India  ties  might  lead  to  a  situation  where  India  alone  or  in 
association with other countries may cause trouble for China. 
● India  should  consider  building  bilateral  relations  with  countries  with  a  view  to 
draw their specific attention to China’s aggressive policies and designs. 
● The  decoupling  of  China-India  relations  will  further  ​strengthen  the  “anti-China 
alliance”  between  the  U.S.,  Japan,  Australia,  Vietnam,  Indonesia  ​and  other 
countries,  who  will  actively take the initiative to reshape global industrial chains, 
use  the  Indo-Pacific  Strategy  to check and balance China’s military and economic 
power, and expand international organizations. 
   
7. MACROECONOMICS OF A LOCKDOWN 
 
Define Lockdown 
It  is  a  shock  to  the  economy  that  changes  in  a  short  period.  The  period  after  the 
lockdown is lifted, constitutes another short period.  
 
There are three periods to be considered: 
● Pre-lockdown 
● Lockdown 
● Post-lockdown 
 
Impact of Lockdown 
● Production of both goods and services is severely curtailed. 
● There is minimal trade and transportation and administration. 
● Capacity utilisation in non-essential sectors falls to zero. Like, for automobiles. 
● The  restriction  on  movement  and  lockdown  has  led  to  the  breakdown  of  supply 
chains of agricultural produce with no facilities for transportation of produce. 
● The  slowdown  in  the  economy  domestically  and  the  expected  recession 
worldwide will contribute to lower demand for agricultural commodities. 
● Employment  rate  falls,  which  indicates  the  rise  in  social  security  payments  and 
the  increased  demand  for  work  under  Mahatma  Gandhi  National  Rural 
Employment Guarantee Act (MGNREGA) in India. 
● Due to low capacity utilisation across businesses, fresh investment becomes zero. 
● In the public sector investment falls due to budget constraints. 
● In the private sector, investment becomes negative. 
● Households  incomes  declined  (in  the  organised  sector)  or  became  zero  (due  to 
unemployment  in  both  organised  and  unorganised  sectors)  while  consumption 
of essentials has to continue. 
● All  commodity  prices  fall  due  to  lack  of  demand,  but  it  rises  in  urban  areas  due 
to shortages and hoarding.  
● There will be a tendency for deflation in the economy. 
 
After Lockdown  
● Immediately after lockdown, most production stops.  
● Income will fall due to wage cuts and unemployment. 
● Due to a sharp fall in demand, all commodity prices will fall. 
● Post-lockdown,  due  to  the  need  for  physical  distancing,  the  costs  will  rise  and 
production  cannot  go  back  to  full  capacity  for  most  lines  of  production,  like  for 
travel, tourism and sports. 
● consumption  will  decline  drastically  during  lockdown  and  will  only  pick  up 
gradually after lockdown. 
● Due  to  shortage  of  resources  with the government, Investment will  be negligible 
during lockdown and pick up gradually after the lockdown. 
 
Revenue of Government 
● Tax/GDP ratio will fall. In India, it will fall from 16% in 2019/20 to 8% or less. 
● Since both GDP and tax/GDP ratio will fall, revenue will fall sharply. 
 
Budgetary Expenditures 
● The  Fiscal  Deficit will rise sharply, because subsidies will rise and all taxes fall on 
profits, incomes and indirect taxes.  
● Demand  will  fall  in  the  economy  due  to  the  big  fall  in  private  investment  and 
consumption. 
● Government can cut tax rates and try to boost incomes. 
 
Post-lockdown 
● Production in some sectors will start operations gradually. 
● Primary  sectors  like  agriculture  and  forestry  will  continue  at  full  capacity,  but 
their contribution to GDP will be small. 
● Labour shortages will lead to an increase in wages for industry. 
 
India in 2020–21 
● India’s  GDP  is  likely  to  decline  from  `204  lakh crore in 2019–20 to `130 lakh crore 
in 2020–21. 
● An  additional  expenditure  on  medical  expenses  and  building  health 
infrastructure will be needed 
● Support  to  businesses  is  required  which  can  come  from  the  moratorium  on 
repayment of interest and loans. 
● Non-tax  revenue  will  fall  drastically  as  the  public  sector  will  be  running  into 
losses,  there  will  be  delay  in  auction  of  spectrum,  etc  and  there  will  be  no 
disinvestment. 
 
Conclusion 
● Lockdown  may  be  temporary  but  there  are  several  constraints  in  output which 
changes the dynamics of the economy for the subsequent period.  
● After  the  lockdown,  the  economy  would  not  recover  to  its  pre-lockdown 
position.  
● The  lockdown  affects  employment,  consumer  sentiment  and  capacity  utilisation. 
Private  investment  turns  negative  due  to  business  failures  and  because  all 
economic actors dissave—households, businesses and government. 
   
8. FINANCING THE RIGHT TO EDUCATION 
 
About Right to Education Act 
It  is  titled  ​“the  Right  of  Children  to  Free  and  Compulsory  Education  Act”​.  It  was 
passed  by  the  Parliament  in  August  2009.  India  became  one  among  135  countries 
where education is a fundamental right of every child. 
● The  86th  Constitutional  Amendment  (2002)  inserted  Article  21A  in  the  Indian 
Constitution which states: 
○ “The  State  shall  provide  ​free  and  compulsory  education  to  all  children  of  6 
to 14 ​years in such manner as the State, may by law determine.” 
● As  per  this,  the  right  to  education  was  made  a  fundamental  right  and  removed 
from the list of Directive Principles of State Policy. 
● The RTE is the consequential legislation envisaged under the 86th Amendment. 
● This  Act  makes  it  obligatory  on  the  part  of  the  government  to ensure admission, 
attendance  and  completion  of  elementary  education  by  all  children  falling  in the 
age bracket six to fourteen years. 
● Essentially,  this  Act  ensures  free  elementary  education  to  all  children  in  the 
economically weaker sections of society. 
 
Implementation of RTE Act  
● The  RTE  Act  lays  down  the  duties  of  the  central  government  “to  prepare  the 
estimates of capital and recurring expenditure for the implementation of the Act” 
● But  there  is  a  neglect  of  the  resource  adequacy  and  In  the  context  of  the  Sarva 
Shiksha  Abhiyan  (SSA),  the  blame  is  placed  on  the  lack  of  spending  capacity  by 
various state governments and other local institutions. 
● As  per  another  argument,  despite  higher  expenditures,  there  is  little  success  in 
terms of outcomes measured as test scores. 
● To  link  investments  in,  for  instance,  classrooms  or  teachers  to  test  scores  would 
be  to  ignore  the  ecosystem  of  schooling  with inter-related factors that must come 
together  to  ensure  proper  school  functioning,  along  with  the  right  kind  of 
learning activity. 
 
Status of RTE 
● Despite  Right  to  Education,  about  15  million  children  in  the  relevant  age  group 
are  out  of  school  (NSS  2014–15),  which  is  highest recorded in Uttar Pradesh (UP) 
(13%),  followed  by  Bihar  and  Rajasthan  (around  10%),  then Gujarat and Madhya 
Pradesh (MP) (8%), and Jharkhand (7%).  
● A  disproportionate  share  of  OSC  belong  to marginalised groups; 40% of OSC are 
from Scheduled Caste (SC) and Scheduled Tribe (ST) communities. 
● Also,  states  with  a  high  proportion  of  out  of  school  witnesses  high  levels  of 
privatisation,  which  is  the  reason  why  socio-economically  weaker  sections,  be 
forced to look for low-cost private options or they discontinue their education. 
● School-level  data  reveals  substantial  gaps  between  the normative requirement as 
laid down in the RTE Act, such as in infrastructure. 
● As  per  the  CAG  report  of  2017,  school  buildings  having  major  cracks  in  beams, 
leakages  in  roofs,  temporary  structures,  school  buildings  without  fitness 
certificates, etc. 
 ● A  large  percentage  of  schools  are  violating  the  RTE  norms  on  teacher 
requirements. 
● The  estimated teacher gap stands at 25% of required teachers (31% when OSC are 
included).  
● Teacher  gaps  within  a  state  concentrated  in  the  backward  and  remote  areas, 
accounting  for  the  large  proportion  of  schools  violating  the  RTE  teacher 
requirement. 
● The  lack  of  professional  qualifications  in  teachers  is  closely  related to the deficits 
in institutional capacity for teacher education and training. 
● Despite  the  RTE  Act, there are substantial gaps in basic facilities for children who 
are  currently  in  school  as  well  as  the  significant  proportions  that  are  out  of 
school. 
 
Equalisation of States in Education Grants  
● SSA  grants  per  child  have  been  consistently  higher  for  the  better  performing 
states compared to the lagging states. 
● The  main  objectives  of  SSA  is  to  facilitate  additional  funds  from  the  central 
government  so  as  to  reduce  the  disparity  in  fiscal  capacity  to  achieve  universal 
elementary education across states, 
● The  horizontal  distribution  of  central  taxes  does  not  match  the  educational 
disadvantages of the states either.  
 
Role of the Finance Commission in Education  
● There  is  a  need  for  additional  resources  to  be  provided  to  any  state  government 
so  that  the  state  government  may  provide  its  share  of  funds  for  carrying  out  the 
provisions of the RTE Act. 
● The  Fifteenth  Finance  Commission  needs  to  examine  l the resource requirements 
and  suggest  suitable  specific  purpose  grants  so  as  to  reduce  the  imbalances  and 
address the requirements of universalisation. 
● It  is  important  that  the  Finance  Commission  takes  a  comprehensive  view  of  the 
sectoral needs as well as spending patterns and the priorities of the states. 
 
Pass Commission Recommendations 
● The  Twelfth  Finance  Commission  (2005–10)  has  recommended  grants  towards 
equalisation  of  educational  expenditures  for  eight  states:  Assam,  Bihar, 
Jharkhand, MP, Odisha, Rajasthan, UP and West Bengal. 
● The  Thirteenth  Finance  Commission  (2010–15)  recommended  grants  for 
elementary education based on estimates of requirement. 
● The  emphasis  of  the  Fourteenth  Finance  Commission  has  been  to  move  from 
conditional  transfers  to  unconditional  transfers;  it  has  raised  the  states’  share  in 
the divisible pool of central taxes. 
 
Recommendations 
● The  Fifteenth  Finance  Commission  needs  to  address  the inequalities in provision 
of elementary education. 
● We  suggest  a  specific  purpose  grant  for  elementary  education,  with  certain 
guidelines. 
● The  states’  responses  to  the  Fourteenth  Finance  Commission  increases  in 
devolution  share  provide  further  reason  for the Fifteenth Finance Commission to 
consider  specific  purpose  grants  as  a  push  for  the  universalisation of elementary 
education. 
● As  per  the  the  recent  Report  of  the  Fifteenth  Finance  Commission  for  the 
financial  year  2020–21  recommends  performance-based  grants  for  elementary 
education.  These  conditional  grants  to  states  are  to  provide  financial  incentives 
for  best  performing  states  judged  in  terms  of  improvement  in learning outcomes 
and transition rates to secondary for girls 
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