INDIA YEAR BOOK - 2015 INDIA YEAR BOOK-2015| Part - I 1 INDIA YEAR BOOK-2015 Dear Students, With the focus to simply understanding of complex concepts and separate the wheat from the chaff, Rau’s IAS Study Circle presents a synopsis of the voluminous yet very important INDIA YEAR BOOK-2015. This issue prepared by the Study Circle, titled INDIA YEAR BOOK 2015 | PART I, covers all useful information of the first fifteen chapters and presents them in a very concise and lucid manner. All the important points are given in bold and highlighted. The content is complimented by figures and pictures as and when required. The aim is coverage of all relevant study material within minimum readable pages. INDIA YEAR BOOK 2015 |PART I covers the following topics: 1. Land and the People 11. Energy 2. National Symbols 12. Environment 3. The Polity 13. Finance 4. Agriculture 14. Corporate Affairs 5. Culture and Tourism 15. Food and Civil Supplies 6. Basic Economic Data 7. Commerce 8. Communications and Information Technology 9. Defence 10. Education Good Luck! RAU’S IAS STUDY CIRCLE
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INDIA YEAR BOOK - 2015
INDIA YEAR BOOK-2015| Part - I 1
INDIA YEAR BOOK-2015
Dear Students,
With the focus to simply understanding of complex concepts and separate the wheat from the
chaff, Rau’s IAS Study Circle presents a synopsis of the voluminous yet very important INDIA
YEAR BOOK-2015.
This issue prepared by the Study Circle, titled INDIA YEAR BOOK 2015 | PART I, covers all
useful information of the first fifteen chapters and presents them in a very concise and lucid
manner. All the important points are given in bold and highlighted. The content is complimented
by figures and pictures as and when required.
The aim is coverage of all relevant study material within minimum readable pages.
INDIA YEAR BOOK 2015 |PART I covers the following topics:
1. Land and the People 11. Energy
2. National Symbols 12. Environment
3. The Polity 13. Finance
4. Agriculture 14. Corporate Affairs
5. Culture and Tourism 15. Food and Civil Supplies
6. Basic Economic Data
7. Commerce
8. Communications and Information Technology
9. Defence
10. Education
By preparing the synopsis of the Year Book, the Study Circle hopes that all students will be able to make the
best use of information available in the least amount of time.
Good Luck!
RAU’S IAS STUDY CIRCLE
TABLE OF CONTENTS
INDIA YEAR BOOK-2015| Part - I 2
TABLE OF CONTENTS
CHAPTER ONE | LAND AND THE PEOPLE……………………………………………………….......... 03
CHAPTER TWO | NATIONAL SYMBOLS………………………………………………………..……… 10
CHAPTER THREE | THE POLITY………………………………………………………..…………………. 11
CHAPTER FOUR | AGRICULTURE………………………………………………………..…………….… 22
CHAPTER FIVE | CULTURE AND TOURISM…………………………………………………………... 25
CHAPTER SIX | BASIC ECONOMIC DATA………………………………………………………..…… 30
CHAPTER FIFTEEN| FOOD AND CIVIL SUPPLIES …………………………..………………….…. 82
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 3
CHAPTER ONE | LAND AND THE PEOPLE
INDIA is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of
legend and the great grandmother of tradition. Our most valuable and most instructive materials in the history of man
are treasured up in India only.’—Mark Twain
India has a unique culture and is one of the oldest and greatest civilizations of the world. It stretches from the snow-
capped Himalayas in the North to sun drenched coastal villages of the South and the humid tropical forests on the
south-west coast, from the fertile Brahmaputra valley on its East to the Thar desert in the West. It covers an area of
32,87,263 sq. km.’
Lying entirely in the northern hemisphere, the mainland extends between latitudes o
8 4' and o
37 6' north, longitudes o
68 7' and 97 25’° east and measures about 3,214 km from north to south between the extreme latitudes and about
2,933 km from east to west between the extreme longitudes. It has a land frontier of about 15,200 km. The total length
of the coastline of the mainland, Lakshadweep Islands and Andaman & Nicobar Islands is 7,516.6 km.
The plains of the Ganga and the Indus, about 2,400 km long and 240 to 320 km broad, are formed by basins of three
distinct river systems – the Indus, the Ganga and the Brahmaputra. They are one of the world’s greatest stretches of flat
alluvium and also one of the most densely populated areas on the earth.
The desert region can be divided into two parts - the ‘great desert’ and the ‘little desert’. The great desert extends from
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 4
the edge of the Rann of Kuchch beyond the Luni river northward. The little desert extends from the Luni between
Jaisalmer and Jodhpur up to the northern west. Between the great and the little zone of absolutely sterile country,
consisting of rocky land, cut up by limestone ridges.
The Peninsular Plateau is marked off from the plains of the Ganga and the Indus by a mass of mountain and hill
ranges varying from 460 to 1,220 metres in height. Prominent among these are the Aravali, Vindhya, Satpura and
Ajanta.
The southern point of plateau is formed by the Nilgiri Hills where the Eastern and the Western Ghats meet. The
Cardamom Hills lying beyond may be regarded as a continuation of the Western Ghats.
RIVER SYSTEMS : The river systems of India can be classified into four groups viz., (i) Himalayan rivers, (ii) Deccan
rivers, (iii) Coastal rivers, and (iv) Rivers of the inland drainage basin. The Himalayan rivers are formed by melting
snow and glaciers and therefore, continuously flow throughout the year. The Deccan rivers on the other hand are
rainfed and therefore fluctuate in volume. Many of these are non-perennial. The Coastal streams, especially on the
west coast are short in length and have limited catchment areas. Most of them are non-perennial. The streams of inland
drainage basin of western Rajasthan are few and far apart. Most of them are of an ephemeral character.
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 5
The main Himalayan river systems are those of the Indus and the Ganga-Brahmaputra-Meghna system. The Indus,
which is one of the great rivers of the world, rises near Mansarovar in Tibet and flows through India and thereafter
through Pakistan and finally falls into the Arabian sea near Karachi. Its important tributaries flowing in Indian
territory are the Sutlej (originating in Tibet), the Beas, the Ravi, the Chenab and the Jhelum.
The principal tributes of Brahmaputra in India are the Subansiri, Jia Bhareli, Dhansiri, Puthimari, Pagladiya and the
Manas. The Brahmaputra in Bangladesh fed by Teesta, etc. finally falls into Ganga. The Barak river, the head stream of
Meghna, rises in the hills in Manipur.
The Godavari in the southern Peninsula has the second largest river basin covering 10 percent of the area of India.
Next to it is the Krishna basin in the region and the Mahanadi is another large basin of the region. The basin of the
Narmada in the uplands of the Deccan, flowing to the Arabian Sea and of the Kaveri in the south, falling into the Bay
of Bengal are about the same size, though with different character and shape.
FLORA : India is rich in flora. Available data place India in the tenth position in the world and fourth in Asia in plant
diversity. From about 70 per cent geographical area surveyed so far, over 46,000 species of plants have been described
by the Botanical Survey of India (BSI), Kolkata. The vascular flora, which forms the conspicuous vegetation cover,
comprises 15,000 species.
With a wide range of climatic conditions from the torrid to the arctic, India has a rich and varied vegetation, which
only a few countries of comparable size possess.
The Western Himalayan region extends from Kashmir to Kumaon. Its temperate zone is rich in forests of chir, pine,
other conifers and broad-leaved temperate trees. Higher up, forests of deodar, blue pine, spruce and silver fir occur.
The alpine zone extends from the upper limit of the temperate zone of about 4,750 metres or even higher. The
characteristic trees of this zone are high- level silver fir, silver birch and junipers.
The Assam region comprises the Brahmaputra and the Surma valleys with evergreen forests, occasional thick clumps
of bamboos and tall grasses. The Indus plain region comprises the plains of Punjab, western Rajasthan and northern
Gujarat. It is dry, hot and supports natural vegetation. The Ganga plain region covers the area which is alluvial plain
and is under cultivation for wheat, sugarcane and rice. Only small areas support forests of widely deferring types. The
Deccan region comprises the entire table land of the Indian Peninsula and supports vegetation of various kinds from
shrub jungles to mixed deciduous forests. The Malabar region covers the excessively humid belt of mountain country
parallel to the west coast of the Peninsula. Besides being rich in forest vegetation, this region produces important
commercial crops, such as coconut, betelnut, pepper, coffee, tea, rubber and cashewnut. The Andaman region abounds
in evergreen, mangrove, beach and diluvial forests. The Himalayan region extending from Kashmir to Arunachal
Pradesh through Sikkim, Meghalaya and Nagaland and the Deccan Peninsula is rich in endemic flora, with a large
number of plants which are not found elsewhere.
Ethno-botanical study deals with the utilisation of plants and plant products by ethnic races. A scientific study of such
plants has been done by BSI. A number of detailed ethno-botanical explorations have been conducted in different tribal
areas of the country.
FAUNAL RESOURCES OF INDIA : India is very rich in terms of biological diversity due to its unique bio location,
diversified climate conditions and enormous ecodiversity and geodiversity.
India’s immense biological diversity encompasss ecosystems, populations, species and their genetic make-up. This
diversity can be attributed to the vast variety in physiography and climatic situations resulting in a diversity of
ecological habitats ranging from tropical, sub-tropical, temprate, alpine to desert. According to world biogeographic
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 6
classification, India represents two of the major realms (the Palearctic and Indo-Malayan) and three bimes (Tropical
Humid Forests, Tropical Dry/Deciduous Forests and Warm Deserts/Semi Deserts).
India holds a unique position with the priority of conservation of natural resources and sustainable development.
Infact, within only about 2% of world’s total land surface, India is known to have over 7.50% of the species of animals
that the world holds and this percentage accounts nearly for 94037 species so far known, of which insects alone include
61,375 species. It is estimated that about two times that number of species still remains to be discovered in India alone.
DEMOGRAPHIC BACKGROUND
CENSUS : Census 2011 was the 15th Census of India since 1872. It as held in two phases:
• Population : Persons-1210.7 million; Males 623.2 million; and Females- 587.5 million.
• Density of Population 2001-2011: Density in 2001:325 and density in 2011- 382, difference being 17.5% (density
is defined as the number of persons/sq km.)
• Gender composition of Population 2011: Overall sex ratio at the National level has increased by 7 points since census 2001 to reach 943 at census 2011. This is the highest sex ratio recorded since census 1991.
• As per the census 2011, literates constituted 73.0 percent of the total population aged seven and above and
illiterates forme4 27.0 per cent. Literacy rate has gone up from 64.8 per cent in 2001 to 73.0 per cent showing an
increase of 8.2 percentage points. It is encouraging to note that out of total of 202,810,720 literates added during
the decade, female 104,660,657 outnumber male 98,150,063.
POPULATION : The population of India as on March 1st, 2011 stood at 1,210.7 million (623.2 million males and 587.5
million females). India accounts for a meagre 2.4 per cent of the world surface area of 135.79 million sq.km. Yet, it
support and sustains a whopping per cent of the world population.
POPULATION DENSITY : One of the important indices of population concentration is the density of population. It is
defined as the number of persons per sq.km. The population density of India in 2011 was 382 per sq km-decadal
growth 17.54 per cent.
The density of population increased in all States and Union Territories between 1991 and 2011. Among major states,
Bihar is the most thickly populated state with (a population density of) 1,106 persons per sq.km. followed by West
Bengal 1,028 and Kerala 860.
SEX RATIO : Sex ratio, defined as the number of females per thousand males is an important social indicator to
measure the extent of prevailing equality between males and females in a society at a given point of time. The sex ratio
from 1901-2011 has registered a 10 point increase at census 2011 over 2001; however, child sex ratio has declined to 919
per thousand male.
LITERACY : For the purpose of census 2011, a person aged seven and above, who can both read and write with
understanding in any language, is treated as literate. A person, who can only read but cannot write, is not literate. In
the censuses prior to 1991, children below five years of age were necessarily treated as illiterates.
The results of 2011 census reveal that there has been an increase in literacy in the country. The literacy rate in the
country is 73.0 per cent, 80.9 for males and 64.6 for females.
Kerala retained its position by being on top with a 94 per cent literacy rate, closely followed by Lakshadweep (86.66
per cent). Bihar with a literacy rate of 61.8 per cent ranks last in the country. Kerala also occupies the top spot in the
country both in male literacy with 96.1 per cent and female literacy with 92.1 per cent. On the contrary, Bihar has
recorded the lowest literacy rates both in case of males (71.2 per cent) and females (51.5 per cent).
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 7
TABLE : LITERACY RATE IN INDIA : 1951-2011
Census Year Persons Males Females Male-Female gap in literacy rate
1 2 3 4 5
1951 18.33 21.61 8.86 18.30
1961 28.3 40.4 15.35 25.05
1971 34.45 45.96 21.97 23.98
1981 43.57 56.38 29.76 26.62
1991 52.21 64.13 39.29 24.84
2001 64.83 75.26 53.67 21.59
2011 74.04 82.14 65.46 16.68
TABLE : LITERATES AND LITERACY RATES BY SEX – 2011
State UT India/ State/ Union Territory Literacy Rate (%)
Persons Males Females
1 2 3 4 5
INDIA 74.04 82.14 65.46
1 Jammu and Kashmir 68.71 78.36 58.01
2 Himachal Pradesh 83.78 90.83 76.60
3 Punjab 76.68 81.48 71.34
4 Chandigarh 86.43 90.54 81.38
5 Uttarakhand 79.63 88.33 70.70
6 Haryana 76.64 85.38 66.77
7 NCT of Delhi 86.34 91.03 80.93
8 Rajasthan 67.06 80.51 52.66
9 Uttar Pradesh 69.72 79.24 59.26
10 Bihar 63.82 73.39 53.33
11 Sikkim 82.20 87.29 76.43
12 Arunachal Pradesh 66.95 73.69 59.57
13 Nagaland 80.11 83.29 76.69
14 Manipur 79.85 86.49 73.17
15 Mizoram 91.58 93.72 89.40
16 Tripura 87.75 92.18 83.15
17 Meghalaya 75.48 77.17 73.78
18 Assam 73.18 78.81 66.27
19 West-Bengal 77.08 82.67 71.16
20 Jharkhand 67.63 78.45 56.21
21 Odisha 73.45 82.40 64.36
22 Chattisgarh 71.04 81.45 60.59
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 8
23 Madhya Pradesh 70.36 80.53 60.02
24 Gujarat 79.31 87.23 70.73
25 Daman and Diu 87.07 83.48 79.51
26 Dadra and Nagar Haveli 77.05 86.46 65.93
27 Maharashtra 82.91 89.32 75.48
28 Andhra Pradesh 67.66 75.56 59.74
29 Karnataka 75.60 82.85 68.13
30 Goa 87.40 92.81 81.84
31 Lakshadweep 92.28 96.11 88.25
32 Kerala 93.91 96.02 91.98
33 Tamil Nadu 80.33 86.81 73.86
34 Puducherry 86.55 92.12 81.22
35 Andaman & Nicobar Island 86.27 90.11 81.84
TABLE : STATES AND UNION TERRITORIES BY POPULATION IN DESCENDING ORDER AND RANK IN 2011 CENSUS
Rank 2011 State/Union Territory Percent to total Population of India 2011
1 2 3
1 Uttar Pradesh 16.50
2 Maharashtra 9.28
3 Bihar 8.60
4 West Bengal 7.54
5 Andhra Pradesh 6.99
6 Madhya Pradesh 6.00
7 Tamil Nadu 5.96
8 Rajasthan 5.66
9 Karnataka 5.05
10 Gujarat 4.99
11 Odisha 3.47
12 Kerala 2.76
13 Jharkhand 2.72
14 Assam 2.58
15 Punjab 2.29
16 Chattisgarh 2.11
17 Haryana 2.09
18 NCT of Delhi 1.39
19 Jammu and Kashmir 1.04
20 Uttarakhand 0.83
21 Himachal Pradesh 0.57
22 Tripura 0.30
CHAPTER-1 | LAND AND THE PEOPLE
INDIA YEAR BOOK-2015| Part - I 9
23 Meghalaya 0.25
24 Manipur 0.23
25 Nagaland 0.16
26 Goa 0.12
27 Arunachal Pradesh 0.11
28 Puducherry 0.10
29 Mizoram 0.09
30 Chandigarh 0.09
31 Sikkim 0.05
32 Andaman & Nicobar Islands 0.03
33 Dadra and Nagar Haveli 0.03
34 Daman & Diu 0.02
35 Lakshadweep 0.01
TABLE : RURAL AND URBAN POPULATION
Census Year Population (Million) Percentage of total population
Rural Urban Rural Urban
1 2 3 4 5
1901 213 26 89.20 10.80
1911 226 26 89.70 10.30
1921 223 28 88.80 11.20
1931 246 33 88.00 12.00
1941 275 44 86.10 13.90
1951 299 62 82.70 17.30
1961 360 79 82.00 18.00
1971 439 109 80.10 19.90
1981 524 159 76.70 23.30
1991 629 218 74.30 25.70
2001 743 286 72.20 27.80
2011 834 377 68.85 31.15
CHAPTER-2 | NATIONAL SYMBOLS
INDIA YEAR BOOK-2015| Part - I 10
CHAPTER TWO | NATIONAL SYMBOLS
NATIONAL FLAG : THE National flag is a horizontal tricolour
of deep saffron (kesaria) at the top, white in the middle and dark
green at the bottom in equal proportion. The ratio of width of the
flag to its length is two to three. In the centre of the white band is
a navy-blue wheel which represents the chakra. Its design is that
of the wheel which appears on the abacus of the Sarnath Lion
Capital of Ashoka. Its diameter approximates to the width of the
white band and it has 24 spokes. The design of the National Flag
was adopted by the Constituent Assembly of India on 22nd July,
1947.
The Flag Code of India, 2002, which took effect from 26 January, 2002, brings together laws, conventions,
practices and instructions to all. According to the Flag Code of India, 2002, there is no restriction on the display of
the National Flag by members of general public, private organisations, educational institutions, etc., except as
provided for in the Emblems and Names (Prevention of Improper Use) Act, 1950, the Prevention of Insults to
National Honour Act, 1971 and any other law enacted on the subject.
STATE EMBLEM : It is an adaptation from the Sarnath Lion Capital of Ashoka. In the original, there are four
lions, standing back to back, mounted on an abacus with a frieze carrying
sculptures in high relief of an elephant, a galloping horse, a bull and a lion
separated by intervening wheels over a bell-shaped lotus. Carved out of a
single block of polished sandstone, the Capitol is crowned by the Wheel of
the Law (Dharma Chakra).
In the state emblem, adopted by the Government of India on 26th January
1950, only three lions are visible. The wheel appears in the centre of the
abacus with a bull on right and a horse on left and the outlines of other
wheels on extreme right and left. The bell-shaped lotus has been omitted. The
words Satyameva Jayate from Mundaka Upanishad, meaning ‘Truth Alone
Triumphs’, are inscribed below the abacus in Devanagari script. The use of
the state emblem of India, as the official seal of the Government of India, is
regulated by the State of India (Prohibition of Improper Use) Act, 2005.
NATIONAL ANTHEM : The song Jana-gana-mana, composed originally in Bengali by Rabindranath Tagore,
was adopted in its Hindi version as the National Anthem of India on 24th January 1950. It was first sung on 27th
December, 1911 at the Kolkata Session of the Indian National Congress.
The duration of the national anthem is approximately 52 seconds. A short version consisting of the first and last
lines of the stanza (playing time aproximate1y 20 seconds) is also played on certain occasions.
NATIONAL SONG : The song Vande Mataram, composed in sanskrit by Bankim Chandra Chatterji, was a
source of inspiration to the people in their struggle for freedom. It has an equal status with Jana-gana-mana. It
was first sung at the 1896 session of the Indian National Congress.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 11
CHAPTER THREE | THE POLITY
INDIA, a Union of States, is a Sovereign Socialist Secular Demoratic Republic with a parliamentary system of
government. The Republic is governed in terms of the Constitution, which was adopted by Constituent Assembly on
November, 1949 and came into force on 26th January, 1950.
The Constitution which envisages parliamentary form of government is federal in structure with unitary features. The
President of India is the constitutional head of executive of the Union. Article 74(1) of the Constitution provides that
there shall be a Council of Ministers with the Prime Minister as its head to aid and advise the President who shall in
exercise of his functions, act accordance with such advice. The real executive power thus vests in the Council of
Ministers with the Prime Minister as its head. The Counsel of Ministers collectively responsible to the House of the
People (Lok Sabha).
The Constitution distributes legislative power between Parliament and state legislatures and provides for vesting of
residual powers in Parliament. Power to amend the Constitution also vests in Parliament.
CITIZENSHIP : The Constitution of India provides for a single citizenship for the whole of India. Every person who
was at the commencement of the Constitution (26th January, 1950) domiciled in the territory of India and: (a) who was
born in India; or (b) either of whose parents were born in India; or (c) who has seen ordinarily resident in India for not
less than five years became a citizen of India. The Citizenship Act, 1955, deals with matters relating to acquisition,
determination and termination of Indian citizenship after the commencement of the Constitution.
FUNDAMENTAL RIGHTS : The Constitution offers all citizens, individually and collectively, some basic freedoms.
These are guaranteed in the Constitution in the form of six broad categories of Fundamental Rights which are
justiciable. Article 12 to 35 contained in Part III of the Constitution deal with Fundamental Rights. These are: (i) Right
to equality including equality before law, prohibition of discrimination on grounds of religion, race, caste, sex or
place of birth and equality of opportunity in matters of employment; (ii) Right to freedom of speech and
expression; assembly; association or union; movement; residence; and right to practice any profession or occupation
(some of these rights are subject to security of the State, friendly relations with foreign countries, public order,
decency or morality); (iii) Right against exploitation, prohibiting all forms of forced labour, child labour and traffic
in human beings; (iv) Right to freedom of conscience and free profession, practice and propagation of religion; (v)
Right of any section of citizens to conserve their culture, language or script and right of minorities to establish and
administer educational institutions of their choice; and (vi) Right to constitutional remedies for enforcement of
Fundamental Rights.
FUNDAMENTAL DUTIES : By the 42nd Amendment of the Constitution, adopted in 1976, Fundamental Duties of the
citizens have also been enumerated. Article 51 ‘A’ contained in Part IV A of the Constitution deals with Fundamental
Duties. These enjoin upon “citizen among other things, to abide by the Constitution, to cherish and follow noble ideals,
which inspired India’s struggle for freedom, to defend the country and render national service when called upon to do
so and to promote harmony and spirit of common brotherhood transcending religious, linguistic and regional sectional
diversities.
DIRECTIVE PRINCIPLES OF STATE POLICY : The Constitution lays down certain Directive Principles of State
Policy, which though not justiciable, are ‘fundamental in governance of the country’ and it is the duty of the State to
apply these principles in making laws. These lay down that the State shall strive to promote the welfare of people by
securing and protecting as effectively as it may a social order in which justice—social, economic and political—shall
form the basis in all institutions of national life.
THE UNION EXECUTIVE : The Union executive consists of the President, the Vice-President and the Council of
Ministers with the Prime Minister as the head to aid and advise the President.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 12
PRESIDENT : The President is elected by members of an electoral college consisting of elected members of both
Houses of Parliament and Legislative Assembles of the states in accordance with the system of proportional
representation by means of single transferable vote. To secure uniformity among states inter se as well as parity
between the states, as a whole, and the Union, suitable weightage is given to each vote. The President must be a citizen
of India, not less than 35 years of age and qualified for election as a member of the Lok Sabha. His term of office is
years and he is eligible for re-election. His removal from office is to be in accordance with procedure prescribed in
Article 61 of the Constitution. He may by writing under his hand addressed to the Vice-President, resign his office.
VICE-PRESIDENT : The Vice-President is elected by members of an electoral college consisting of members of both
Houses of Parliament in accordance with the system of proportional representation by means of single transferable
vote. He must be a citizen of India, not less than 35 years of age and eligible for election as a member of the Rajya
Sabha. His term of office is five years and he is eligible for re- election. His removal from office is to be in accordance
with procedure prescribed in Article 67(b).
The Vice-President is ex-officio Chairman of the Rajya Sabha and acts as President when the latter is unable to
discharge his functions due to absence, illness or any other cause or till the election of a new President (to be held
within six months when a vacancy is caused by death, resignation or removal or otherwise of President). While so
acting, he ceases to perform the function of the Chairman of the Rajya Sabha.
COUNCIL OF MINISTERS : There is a Council of Ministers, headed by the Prime Minister, to aid and advise the
President in exercise of his functions. The Prime Minister is appointed by the President who also appoints other
ministers on the advice of Prime Minister.
The Council is collectively responsible to the Lok Sabha. It is the duty of the Prime Minister to communicate to the
President all decisions of Council of Ministers relating to administration of affairs of the Union and proposals for
legislation and information relating to them.
The Council of Ministers comprises Ministers who are members of Cabinet, Ministers of State (independent charge),
Ministers of State and Deputy Ministers.
RAJYA SABHA : The Constitution provides that the Rajya Sabha shall consist of 12 members to be nominated by the
President from amongst persons having special knowledge or practical experience in respect of such matters as
literature, science, art and social service; and not more than 238 representatives of the States and of the Union
Territories.
LOK SABHA : The Lok Sabha is composed of representatives of people chosen by direct election on the basis of adult
suffrage. The maximum strength of the House envisaged by the Constitution is now 552(530 members to represent the
States, 20 members to represent the Union Territories and not more than two members of the Anglo- Indian
community to be nominated by the President, if, in his opinion, that community is not adequately represented in the
House). The total elective membership of the Lok Sabha is distributed among the States in such a way that the ratio
between the number of seats allotted to each state and the population of the State is, as far as practicable, the same for
all States. The Lok Sabha at present consists of 543 members. Of these, 530 members are directly elected from the States
and 13 from Union Territories. Following the 84th amendment to the Constitution in 2001, the total number of existing
seats as allocated to various States in the Lok Sabha on the basis of the 1971 census shall unaltered till the first census to
be taken after the year 2026.
Lok Sabha Date of First
meeting after
Date of
dissolution
Speaker Name From To
First Lok Sabha 13 May 1952 4 April 1957 Ganesh Vasudev 15 May 1952 27 February
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 13
Mavalankar 1956
M.
Ananthasayanam
Ayyangar
8 March 1956 10 May 1957
Second Lok Sabha 10 May 1957 31 March 1962 M.
Ananthasayanam
Ayyangar
11 May 1957 16 April 1962
Third Lok Sabha 16 April 1962 3 March 1967 Hukam Singh 17 April 1962 16 March 1967
Fourth Lok Sabha 16 March 1967 27 December
1970
Neelam Sanjiva
Reddy
17 March 1967 19 July 1969
Gurdial Singh
Dhillon
08 August 1969 19 March 1971
Fifth Lok Sabha 19 March 1971 18 January
1977
Gurdial Singh
Dhillon
22 March 1971 1 December
1975
Bali Ram Bhagat 5 January 1976 25 March 1977
Sixth Lok Sabha 25 March 1977 22 August 1979 Neelam Sanjiva
Reddy
26 March 1977 13 July 1977
K.S. Hegde 21 July 1977 21 January 1985
Seventh Lok
Sabha
21 January
1980
21 December
1984
Bal Ram Jakhar 22 January 1980 15 January 1985
Eight Lok Sabha 15 January
1985
22 November
1989
Bal Ram Jakhar 16 January 1985 18 December
1989
Ninth Lok Sabha 18 December
1989
13 March 1991 Rabi Ray 19 December
1989
9 July 1991
Tenth Lok Sabha 9 July 1991 10 May 1996 Shivraj V. Patil 10 July 1991 22 May 1996
Eleventh Lok
Sabha
22 May 1996 4 December
1997
P.A. Sangma 23 May 1996 23 March 1998
(FN)
Twelfth Lok
Sabha
23 March 1998 26 April 1999 G.M.C. Balayogi 24 March 1998 20 October 199
(FN)
Thirteenth Lok
Sabha
20 Oct. 1999 6 February
2004
G.M.C. Balayogi 22 October 1999 3 March 2002
Manohar Gajanan
Joshi
10 May 2002 2 June 2004
Fourteenth Lok
Sabha
2 June, 2004 18 May 2009 Somnath Chatterjee 4 June 2004 1 June 2009
Fifteenth Lok
Sabha
1 June, 2009 18 May 2014 Meira Kumar 1 June 2009 18 May 2014
Sixteenth Lok
Sabha
4 June, 2014 – Sumitra Mahajan 6 June 2014 Till Date
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 14
PARLIAMENTARY COMMITTEES: Both Houses of Parliament have a similar committee structure, with few
exceptions. Their appointment, terms of office, functions and procedure of conducting business are also more or less
similar and are regulated as per rules made by the two Houses under Article 118(1) of the Constitution.
Broadly, Parliamentary Committees are of two kinds—Standing Committees and ad hoc Committees. The former are
elected or appointed every year or periodically and their work goes on, more or less, on a continuous basis. The latter
are appointed on an ad hoc basis as need arises and they cease to exist as soon as they complete the task assigned to
them.
Standing Committees: Among the Standing Committees, the three Financial Committees—Committees on Estimates,
Public Accounts and Public Undertakings— constitute a distinct group as they keep an unremitting vigil over
Government expenditure and performance. While members of the Rajya Sabha are associated with Committees on
Public Accounts and Public Undertakings, the members of the Committee on Estimates are drawn entirely from the
Lok Sabha.
The Estimates Committee reports on ‘what economies, improvements in organisation, efficiency or administrative
reform consistent with policy underlying the estimates’ may be effected. It also examines whether the money is well
laid out within limits of the policy implied in the estimates. The Public Accounts Committee scrutinizes appropriation
and finance accounts of Government and reports of the Comptroller and Auditor-General.
The Rules Committee of the Lok Sabha recommended setting-up of 17 Department Related Standing Committees
(DRSCs).
In July 2004, rules were amended to provide for the constitution of seven more such committees, thus raising the
number of DRSCs from 17 to 24. The functions of these Committees are : (a) to consider the Demands for Grants of
various Ministries/Departments of Government of India and make reports to the Houses; (b) to examine such Bills as
are referred to the Committee by the Chairman. To consider Annual Reports of ministries/departments and make
reports thereon; and (d) to consider policy documents presented to the Houses, if referred to the Committee by the
Chairman, Rajya Sabha or the Speaker, Lok Sabha, and make reports thereon.
Other standing committees are (i) Committees to Inquire: (a) Committee on Petitions examines petitions on bills and
on matters of general public interest (b) Committee of Privileges examines any question of privilege referred to it by
the House or Speaker/Chairman; (ii) Committees to Scrutinise: (a) Committee on Government Assurances keeps
track of all the assurances, promises, undertakings, etc., given by Ministers in the House (b) Committee on Subordinate
Legislation Scrutinises and reports to the House whether the power to make regulations, rules, sub-rules, bye-laws,
etc., conferred by the Constitution or Statutes is being properly exercised by the delegated authorities; and (c)
Committee on Papers Laid on the Table examines all papers laid on the table of the House by Ministers, other than
statutory notifications and orders; (iii) Committees relating to the day-to-day business of the House: (a) Business
Advisory Committee recommends allocation of time for items of Government and other business to be brought before
the Houses; (b) Committee on Private Members’ Bills and Resolutions of the Lok Sabha classifies and allocates time to
Bills introduced by private members. (c) Rules Committee considers matters of procedure and conduct of business in
the House and recommends amendments or additions to the Rules; and (d) Committee on Absence of Members from
the Sittings of the House of the Lok Sabha. There is no such Committee in the Rajya Sabha. Applications from members
for leave or absence are considered by the House itself; (iv) Committee on the Welfare of Scheduled Castes and
Scheduled Tribes, on which members from both Houses serve. (v) Committees concerned with the provision of
facilities to members (a) General Purposes Committee considers and advises Speaker/Chairman on matters
concerning affairs of the House (b) House Committee deals with residential accommodation and other amenities for
members; (vi) Joint Committee on Salaries and Allowances of Members of Parliament, constituted under the Salary,
Allowances and Pension of Members of Parliament Act, 1954; (viii) The Library Committee (ix) On 29 April 1997, a
Committee on Empowerment of Women with members from both the Houses was constituted, to secure, status,
dignity and equality for women in all fields; (x) On 4 March 1997, the Ethics Committee of the Rajya Sabha was
constituted. The Ethics Committee of the Lok Sabha was constituted on 16 May 2000.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 15
Ad hoc Committees : Broadly classified under two heads: (a) committees which are constituted from time to time,
either by the two Houses on a motion adopted in that behalf or by Speaker/Chairman to inquire into and report on
specific subjects (b) Select or Joint Committees on Bills which are appointed to consider and report on a particular Bill.
These Committees are distinguishable from the other ad hoc committee as much as they are concerned with Bills and
the procedure to be followed by them as laid down in the Rules of Procedure and Directions by the
Speaker/Chairman.
LEADERS OF OPPOSITION IN PARLIAMENT: The Leaders of Opposition in the Rajya Sabha and the Lok Sabha
are accorded statutory recognition. Salary and other suitable facilities are extended to them through a separate
legislation brought into force on l November 1977.
GOVERNMENT BUSINESS IN PARLIAMENT: The Minister of Parliamentary Affairs coordinates plans and
arranges Government Business in both Houses of Parliament.
CONSULTATIVE COMMITTEES: Functioning of Consultative Committees of Members of Parliament for various
Ministries is one of the functions allocated to the Ministry of Parliamentary affairs under the Government of India
(Allocation of Business) Rules, 1961. Their objective is to provide a forum for informal discussion between Members
of Parliament, and Ministers and senior officers of the Government, on the policies, principles and programmes of the
Government and their implementation. The minimum membership of a Consultative Committee is 10 and the
maximum membership is 30. The Consultative Committee stand dissolved upon dissolution of every Lok Sabha and
re-constituted upon constitution of each Lok Sabha.
NOMINATION OF MEMBERS OF PARLIAMENT ON GOVERNMENT COMMITTEES/BODIES YOUTH
PARLIAMENT COMPETITION: In order to develop democratic ethos in the younger generation the Ministry
conducts Youth Parliament Competition in various categories of schools and colleges / universities. The Youth
Parliament Scheme was first introduced in the Schools in Delhi in 1966-67.
OTHER PARLIAMENTARY MATTERS
ALL INDIA WHIPS CONFERENCE: The Ministry of Parliamentary Affairs, organises All India Whips Conference to
establish suitable links among the whips of various political parties at the Centre and the States who are concerned
with the practical working of the legislatures to discuss matters of common interest and to strengthen the institution of
Parliamentary Democracy.
MATTERS UNDER RULE 377 AND SPECIAL MENTIONS: The Ministry of Parliamentary Affairs takes follow-up
action on matters raised under Rule 377 of the Rules of Procedure and Conduct of Business in Lok Sabha and by way
of Special Mentions in Rajya Sabha.
GOODWILL DELEGATION: The Ministry of Parliamentary Affairs sponsors Government Goodwill Delegation of
Members of Parliament to other countries and receives similar Government sponsored delegations of parliamentarians
under the exchange programme from other countries through the Ministry of External Affairs.
WELFARE OF MEMBERS OF PARLIAMENT: The Ministry of Parliamentary Affairs looks after the welfare of ailing
Members of Parliament admitted for treatment in hospitals in Delhi.
ADMINISTRATIVE SET-UP: The Government of India (Allocation of Business) Rules, 1961 are made by the
President of India under Article 77 of the Constitution for the allocation of business of the Government of India.
CABINET SECRETARIAT: The Cabinet Secretariat functions directly under the Prime Minister. The administrative
head of the Secretariat is the Cabinet Secretary who is also the ex-officio Chairman of the Civil Services Board. The
business allotted to cabinet secretariat is (i) Secretarial assistance to Cabinet and Cabinet Committees; and (ii) Rules
of Business.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 16
The Cabinet Secretariat is a useful mechanism by the departments for promoting inter-Ministerial coordination since
the Cabinet Secretary is also the head of the civil services.
PERFORMANCE MANAGEMENT DIVISION - RESULTS FRAMEWORK DOCUMENT: The Prime Minister
approved the outline of the Performance monitoring and Evaluation System (PMES) for Government Departments on
September 11, 2009. Performance Management Division (PMD) in the Cabinet Secretariat is headed by a Secretary to
Government of India, and is responsible for this activity through the mechanism called Results-Framework
Documents. At the beginning of each financial year, each Department prepares a Results Frame Document (RFD)
consisting of the priorities set out by the Minister concerned agenda as spelt out by the Government from time to time.
The Minister in-charge decides the inter-se priority among the departmental objectives.
The RFD addresses three basic questions; (a) department’s main objectives for the year (b) actions proposed to
achieve these objectives (c) the degree of progress made in implementing these objectives.
PMD of the Cabinet Secretariat has also undertaken various initiatives relating to overall improvement in the
functioning of the Government departments These are: (i) Implementation of 2nd Administration Reforms
Commission Recommendation; (ii) Performance Related Incentives (PRI); (iii) Performance Appraisal Report (PAR)
System; (iv) Operationalizing ‘Sevottam’; (v) Assisting State Governments in Implementing RFD; (vi) ISO 9001
Certification: The quality consciousness in Government has been introduced with all Ministries/ Departments having
been required to develop an action plan to obtain ISO:9001 certification of the Department in phases; (vii) Innovation
in Government; (viii) Assistance to other countries; (ix) Implementing e-Office: In its efforts to move towards a
paperless office, the day to day working of the Cabinet Secretariat is being carried out through the e-Office system
developed by the NIC; (x) Newsletter “Performance Matters”:In government and to promote knowledge sharing in
this area, the Performance Management Division, Cabinet Secretariat is regularly bringing out a quarterly Newsletter
titled “Performance Matters” since April, 2009; (xi) Website: One of the interesting features on the PMD Website is
Communities of Practice (COP) on various subjects. COP is basically a group of people who share a concern or a
passion for something they do and learn how to do it better as they interact regularly.
MATTERS UNDER RULE 377 AND SPECIAL MENTIONS : The Ministry of Parliamentary Affairs takes follow-up
action or matters raised under Rule 377 of the Rules of Procedure and Conduct of Business in Lok Sabha and by way of
Special Mentions in Rajya Sabha. Also after ‘Question Hour’ in both the Houses of Parliament, Members raise matters
of urgent public Importance. Though it is not mandatory Ministers sometimes react to the points made by the
Members. In the absence of concerned Minister, the Minister of Parliamentary Affairs assures the House or the
individual Members that their sentiments would be conveyed to the concerned Ministers.
MINISTRIES/DEPARTMENTS OF THE GOVERNMENT : The Government consists of a number of
Ministries/Departments, number and character varying from time to time on factors such as volume of work,
importance attached to certain items, changes of orientation, political expediency, etc.
LIST OF THE MINISTRIES / DEPARTMENTS
1. Ministry of Agriculture (Krishi Mantralaya)
(i) Department of Agriculture and Co-operation
(Krishi aur Sahkarita Vibhag)
(ii) Department of Agricultural Research and Education
(Krishi Anusandhan aur Shiksha Vibhag)
(iii) Department of Animal Husbandry, Fisheries and Dairying
(Pashupalan aur Dairy aur Matsyapalan Vibhag)
2. Ministry of Commerce and Industry (Vanijya aur UdyogMantralaya)
(i) Department of Commerce (Vanijya Vibhag)
(ii) Department of Industrial Policy and Promotion
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 17
(Audyogik Niti aur Samvardhan Vibhag)
3. Ministry of Consumer Affairs, Food and Public Distribution
(i) Department of Economic Affairs (Arthik Karya Vibhag)
(ii) Department of Expenditure (Vyaya Vibbag)
(iii) Department of Revenue (Rajaswa Vibhag)
(iv) Department of Disinvestment (Vinivesh Vibhag)
(v) Department of Financial Services ( Vittiya Sewayen Vibhag)
5. Ministry of Home Affairs (Crib Mantralaya)
(i) Department of Internal Security (Aantarik Suraksha V4thag)
(ii) Department of States (Rajya Vibhag)
(iii) Department of Official Language (Raj Bhasha Vibhag)
(iv) Department of Home (Grih Vibhag)
(v) Department of Jammu and Kashmir Affairs
(vi) Department of Border Management
6. Ministry of Personnel, Public Grievances and Pensions
(Karmik Lok Shikayat tatha Pension Mantralaya)
(i) Department of Personnel and Training (Karmik aur Prashikshan Vibhag)
(ii) Department of Administrative Reforms and Public Grivances (Prashasnik Sudharaur Lok Shikayat
Vibhag)
(iii) Department of Pensions and Pensioners’ Welfare (Pension aur Pension Bhogi Kalyan Vibhag)
NOTE : IMPLEMENTATION OF 2ND ADMINISTRATION REFORMS COMMISSION RECOMMENDATION
Administrative Reforms Commission-IT (ARC) in its report on “Organisational Structure of Government of India”
inter alia recommended that Government of India should primarily focus on core functions and that it should, at all
levels, be guided by the principle of subsidiarity. It was further recommended that there was a need to carry out a
detailed analysis of the functions/activities in each Ministry/Department to help the ministries to prepare an action
plan for delegating implementation activities and non-core activities to attached and ordinate offices.
COMPTROLLER AND AUDITOR GENERAL (CAG) : The Comptroller and Auditor General of India is appointed
by the President. The procedure and the grounds for his removal from office are the same as for a Supreme Court
Judge. He is not eligible for further office under the Union or a State government after he ceases to hold his office.
The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG,
prescribe. The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be
submitted to the President, who shall cause them to be laid before each House of Parliament. The reports of the CAG of
India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid
before the legislature of the State.
The duties, powers and conditions of service of the Comptroller and Auditor-General have been specified by the
Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 18
STAFF SELECTION COMMISSION : Staff Selection Commission (SSC) with Headquarters at New Delhi was set up
on 1st July, 1978. It recruits (i) all non-Gazetted Group ‘B’ post in the various Ministries/Departments of the
Government and their attached and subordinate offices and (ii) all non-technical Group ‘C’ posts in the various
Ministries/ Departments of the Government and their attached and subordinate offices, except those posts which are
specifically exempted from the purview of the Staff Selection Commission.
INDIA-BRAZIL--SOUTH AFRICA (IBSA) FORUM : Recognizing the emergence and consolidation of India - Brazil -
South Africa (IBSA) initiatives and collaboration at regional and global level for promoting good governance and
wishing to strengthen South-South cooperation the three countries acknowledged that joint efforts and collaboration
will position them as active players in helping to direct the public administration and governance towards democratic
values and social inclusion. The Prime Minister of India, the President of Brazil and the President of South Africa met
in Brasilia (Brazil) on 13th September, 2006 for the 1St Summit meeting of the India-Brazil-South
Africa dialogue forum. Pursuant to the IBSA Summit decision as contained in the Joint Declaration issued on the
occasion, an IBSA Working Group on Public Administration (WGPA) has been set up by the three countries. It has
since held seven meetings and adopted the areas of cooperation as (i) integrated monitoring and evaluation, (ii) e-
governance, (iii) human resource development, (iv) citizen oriented service delivery. (v) anti-corruption and ethics,
and (vi) accountability and transparency.
INDIA - MALAYSIA COOPERATION : An MoU on cooperation in the field of Public Administration and
Governance was signed on 25th November 2013. Areas of cooperation under the MoU in the field of Public
Administration and Governance are (i) Human Resources Management; (ii) Improved systems of public service
delivery; (iii) e( Governance; (iv) Accountability and Transparency; (v) Capacity Building and skills up-grading; (vi)
Quality of Outcome; (vii) Governance Reforms of both countries; and (viii) Any other areas of co-operation in the field
of Public ministration and Governance to be jointly decided by the participants.
RIGHT TO INFORMATION : The Right to Information Act, 2005 empowers the citizens, promotes transparency and
accountability in the working of the Government, combat corruption, and make the democracy work for people in real
sense. The Act aims at creating an informed citizenry which would be better equipped to keep necessary vigil on the
instruments of governance and make the government more accountable to the governed.
The Act gives all the citizens the right to seek information held by any authority or body or institution of self
government established or constituted by or under the Constitution; or by any other law made by the Parliament or a
State Legislature; or by notification issued or order made by the Central Government or a State Government.
One has to simply make a request to the Public Information Officer of the office indicating the information sought and
the address at which the information is required. The request can be sent either by post or submitted in person in
Hindi, English or in the official language of the area and can also be sent through e-mail. If the applicant does not get
the information within 3 days or the applicant is not satisfied with the reply given to him, he can make an appeal
within 30 days to the appellate authority appointed by the authority who is an officer superior to the Public
Information Officer. The appellate authority has to decide the appeal within 30 days of the receipt of appeal. If the
applicant is not satisfied even with the decision of the appellate authority he can file a second appeal with the Central
Information Commission or the State Information Commission, as the case may be within 90 days.
OFFICIAL LANGUAGE – CONSTITUTIONAL / STATUTORY PROVISIONS : Article 343 (1) of the Constitution
provides that Hindi in Devanagari script shall be the Official Language of the Union, Article 343 (2) also provided for
continuing the use of English in official work of the Union for a period of 15 years (i.e., up to 25 January 1965) from the
date of commencement of the Constitution, Article 343 (3) empowered the parliament to provide by law for continued
use of English for official purposes even after 25 January 1965.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 19
AWARDS SCHEMES : The Indira Gandhi Rajbhasha Awards Schemes have been in operation since 1986-87. Shields
are given every year to Ministries/Departments, Banks and Financial Institutions, Public Sector Undertakings and
Town Official Language Implementation Committees for outstanding achievements in the implementation of the
Official Language Policy of the Union.
INTER-STATE COUNCIL : Article 263 of the Constitution envisages establishment of an institutional mechanism to
facilitate coordination of policies and their implementation between the Union and the State Governments.
In pursuance of the recommendation made by the Sarkara Commission on Centre-State Relations, the Inter-State
Council was set up in the year 1990 through a Presidential Order dated 28th May, 1990.
The Inter-State Council is a recommendtory body and it investigates and discusses such subjects, in which some or
a1lof the States or the Union and one or more of the States have a common interest, for better coordination of policy
and action with respect to that subject. It also deliberates upon such other matters of general interests to the States as
ma’ be referred by je Chairman to the Council.
The Inter-State Council has also considered other pu1ilic policy and governance issues; these are:
(a) Contract Labour and Contract Appointments;
(b) Blueprint of an Action Plan on Good Governance;
(c) Disaster Mangement - Preparedness of States to cope with disasters;
(d) Atrocities on Scheduled Castes and Scheduled Tribes and Status of Implementation of the Scheduled
Castes/Scheduled Tribes (Prevention of Atrocities) Act, 1989.
EXECUTIVE
GOVERNOR : State executive consists of Governor and Council of Ministers with Chief Minister as its head. The
Governor of a State is appointed by the President for a term of five years office. Only Indian citizens above 35 years of
age are eligible for appointment to this office. Executive power of the State is vested in Governor.
Council of Ministers with Chief Minister as head, aids and advises Governor in exercise of his functions except in so far
as he is by or under the Constitution required to exercise his functions or any of them in his discretion. In respect of
Nagaland, Governor has special responsibility under Article 371 A of the Constitution with respect to law and order
and even though it is necessary for him to consult Council of Ministers in matters relating to law and order can
exercise his individual judgement as to the action to be taken.
LEGISLATURE : For every state, there is a legislature which consists of Governor and one House or, two Houses as
the case may be. In Bihar, Jammu and Kashmir, Karnataka, Maharashtra and Uttar Pradesh, there are two Houses
know Council and Legislative Assembly. In the remaining states, there is only one House known as legislative
assembly.
LEGISLATIVE COUNCIL : Legislative Council (Vidhan Parishad) of a state comprises not more than one-third of
total number of members in legislative assembly of the state and in no case less than 40 members (Legislative Council
of Jammu and Kashmir has 36 members vide Section 50 of the Constitution of Jammu and Kashmir). About one-third
of members of the council are elected by member of legislative assembly from amongst persons who are not its
member, one-third by electorates consisting of members of municipalities, district boards and other local authorities in
the state, one-twelfth by electorate consisting of persons who have been, for at least three years, engaged in teaching
institutions within the state not lower in standard than secondary school and a further one-twelfth by registered
graduates of more than three years standing.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 20
Remaining members are nominated by Governor from among distinguished themselves in literature, science, art,
cooperative movements and social service. Legislative councils are not subject to dissolution but one-third of their
members retire every second year.
LEGISLATIVE ASSEMBLY : Legislative Assembly (Vidhan Sabha) of a state consists of not more than 500 and not
less than 60 members (Legislative Assembly of Sikkim has 32 members vide Article 371F of the Constitution) chosen by
direct election from territorial constituencies in the state. Demarcation of territorial constituencies is to be done in such
a manner that the ratio between population of each constituency and number of seats allotted to it, as far as practicable,
is the same throughout the state. Term of an assembly is five years unless it is dissolved earlier.
LOCAL GOVERNMENT
MUNICIPALITIES: Municipal bodies have a long history in India. The first such Municipal Corporation was set-up
in the former Presidency Town of Madras in 1688; and later in Bombay and Calcutta in 1726. While the Directive
Principles of State Policy refer to village Panchayats, there is no specific reference to Municipalities except the implicity
in Entry 5 of the State List. In order to provide for a common framework for urban local bodies and help to strengthen
the functioning of the bodies as effective democratic units of self government, Parliament enacted the Constitution
(74th Amendment) Act, 1992 (known as Nagarpalika Act) relating to municipalities in 1992. It came into force on 1
June, 1993. A new part IX-A relating to the Municipalities added to provide for among other things, coxistitutiO1 of
three types of Municipalities, i.e., Nagar Panchayats for areas in transition from a rural area to urban area, Municipal
Councils for smaller urban areas and Municipal Corporation for large urban areas.
PANCHAYATS: Article 40 of the Constitution which enshrines one of the Directive Principles of State Policy lays
down that the State shall take steps to organise village panchayats and endow them with such powers and, authority
as may be necessary to enable them to function as units of self-government. A new Part IX relating to the Panchayats
has been inserted in the Constitution to provide for among other things, Gram Sabha in a village or group of villages;
constitution of Panchayats at village and other level or levels; direct elections to all seats in Panchayats at the village
and intermediate level, if any, and to the offices of Chairpersons of Panchayats at such levels; reservation of seats for
the Scheduled Castes and Scheduled Tribes in proportion to their population for membership of Panchayats and office
of Chairpersons in Panchayats at each level; reservation of not less than one-third of the seats for women; fixing tenure
of five years for Panchayats and holding elections within a period of six months in the event of supersession of any
Panchayat.
ELECTION COMMISSION : Election Commission of India was constituted on 25th January, 1950 with its
headquarters at New Delhi. Election Commission of India (ECI) is a permanent and independent constitutional body
vested with the powers and responsibility of superintendence, direction and control of the entire process of conduct of
elections to Parliament and to Legislatures of the States and the Union Territories and elections to the offices of
President and Vice-President held under the Constitution.
Election Commission decides the election schedules for the conduct of elections - both general elections and bye-
elections. It prepares, maintains and periodically updates the electoral rolls, supervises the nomination of candidates,
registers political parties, monitors the election campaign, including funding and expenditure of candidates. It also
facilitates the coverage of the election process by the media, carries out the voter education and awareness measures,
organizes the polling stations/ booths where voting takes place, and oversees the counting of votes and the declaration
of results. It conducts polling through EVMs (Electronic Voting Machines) and recently, on pilot basis, introduced
VVPAT (Voter Verifiable Paper Audit Trail). The Election Commission has also provided for compulsory identification
at the time of voting by means of Electors Photo Identity Cards (EPICs) and distribution of Photo Slip close to polls.
CHAPTER-3 | THE POLITY
INDIA YEAR BOOK-2015| Part - I 21
VOTER TURNOUT HIGHLIGHTS OF LOK SABHA ELECTION 2014
LS 2014 LS 2009
1. Total Votes Polled in the Lok Sabha Elections 55.38 crore 41.7 crore
2. Total Electorate 83.41 crore 71.69 crore
3. Total Voter Turnout percentage 66.4%
(Highest Ever)
58.19%
4. Women Turnout (as percentage of total women electors)
65.63% 55.82%
5. Male Turnout 67.09% 60.24
6. Gender Gap 1.46%
Percentage Points (Lowest ever)
4.42
Percentage points
CHAPTER- 4 | AGRICULTURE
INDIA YEAR BOOK-2015| Part - I 22
CHAPTER FOUR | AGRICULTURE
AGRICULTURE is the principal source of livelihood for more than 55 per cent of the population of this country.
Agriculture provides the bulk of wage goods required by non-agriculture sectors and most of the raw materials for the
industries sector. The combined efforts of Central Government, state governments and the farming community have
succeeded in achieving record production of 257.13 million tonnes of food grains during 2012-13.
MAJOR PROGRAMMES OF DEPARTMENT OF AGRICULTURE
Rashtriya Krishi Vikas Yojana (RKVY) : This scheme was launched in 2007-08 with an outlay of Rs. 25,000 crore for
the XI Plan to incentivize states to enhance investment in Agriculture and Allied sectors to achieve 4 per cent growth
rate during the Plan period and to empower states to select, plan, approve and execute growth generating intervention
and build agri-infrastructure as per their priorities and agro-climatic requirements.
Recent Initiatives by The Agriculture Ministry Under RKVY
i. Activities undertaken through Bring Green Revolution to Eastern India (BGREI):
(a) Cluster demonstrations for rice and wheat in Non-NFSM districts.
(b) Asset building for water management activities such as construction of Dugwells/Shallow Tube
wells/Borewells/Lift Irrigation such as Drum Seeders/Zero Till Seed Drills, Paddy Transplanters and
Pumpsets.
(c) Site specific activities for enhancing the production & productivity of crop. Activities also include other
crop development programme, construction of water channels, power, etc.
(d) Marketing Support for the Promotion/Creation of Primary Processing Facilities including farm level
storage, drying, grading, par-boiling of paddy, bagging etc.; Promotion of Self Help Groups (SHGs);
Institution building/ linkage for procurement operations.
ii. National Mission for Saffron : This sub-scheme under RKVY in 2010-11 with an overall budgetary support of
Rs. 288.06 crore over four years with an objective to bring economic revival of Saffron farming in J & K.
Allocation for this scheme was Rs. 39.44 crore in 2010-11 and in 2011-12 and 2012-13. The fund earmarked for
this programme for 2013-14 under RKVY is Rs. 100 crore.
iii. National Mission for Protein Supplements : This sub-scheme was launched in 2011-12 and an allocation of Rs.
500 crore was provided during 2012-13 to take up activities to promote animal based protein production
through livestock development, dairy farming rearing and fisheries in selected blocks. The fund earn
programme for 2013-14 is Rs. 400 crore.
(iv) Vidarbha Intensified Irrigation Development Programne : This scheme was announced during 2012-13, with
an allocation of 300 crore with the objective to bring in more farming areas under protective irrigation in
Vidarbha region. The funds earmarked for the this programme for 2013-14 is Rs. 300 crore.
National Horticulture Mission (NHM) : This is a Centrally Sponsored Scheme launched in 2005-06 for promotion of
holistic growth of the horticulture sector comprising of fruits, vegetables, root & tuber crops, mushroom, spices,
flowers, aromatic plants, cashew and cocoa. While Government of India (GOI) contributes 85%, 15% share is
contributed by State Governments.
National Food Security Mission : National Food Security Mission was launched in 2007-08 to increase the production
of rice, wheat and pulses by 10, 8 and 2 million tonnes respectively by the end of Eleventh Plan through area expansion
and productivity enhancement; restoring soil fertility and productivity creating employment opportunities, and
enhancing farm level economy.
CHAPTER- 4 | AGRICULTURE
INDIA YEAR BOOK-2015| Part - I 23
The basic strategy of the Mission is to promote and extend improved technologies, i.e., seed, micro-nutrients, soil
amendments, integrated pest management, farm machinery and resource conservation technologies along with
capacity building of farmers. The major interventions/activities covered under NFSM include cluster demonstrations
of rice, wheat and pulses, distribution of improved varieties/hybrid seeds, need based plant and soil management,
resource conservation techniques/energy management, efficient water/application tools, cropping system based
training and local initiatives, award for best performing districts, etc.
National Mission for Sustainable Agriculture (NMSA) : NMSA is one of the eight Missions outlined under National
Action Plan on Climate Change. The strategies and programme of action outlined in the Mission Document, that was
accorded in principle approval by Prime Minister’s Council on Climate Change on September 23, 2010 are aimed at
promoting sustainable agriculture through seventeen deliverables focusing on ten key dimensions of Indian
agriculture.
NMSA as a restructured Mission for 12th Plan has been conceptualized by subsuming Rainfed Area Development
Programme (RADP), National Mission on Micro Irrigation (NMMI), National Project on Organic Farming (NPOF),
National Project on Management of Soil Health & Fertility (NPMSH&F) and Soil and Land Use Survey of India under
its domain. NMSA will accord special focus for development of rainfed areas, resource conservation, water use
efficiency and soil health management. NMSA will also replicate the learning of the National Initiatives of Climate
Resilient Agriculture (NICRA) being implemented by ICAR in selected blocks on pilot basis.
NMSA is expected to transform Indian agriculture into a climate resilient production system through suitable
adaptation and mitigation measures in the domains of both crop husbandry and animal husbandry.
National Agricultural Insurance Scheme (NAIS) : NAIS with the aim to increase coverage of farmers, crops and risk
commitment was introduced in the country from Rabi 1999-2000 replacing Comprehensive Crop Insurance Scheme
(CCIS). The main objective of the scheme is to protect the farmers against the crop losses suffered natural calamities,
such as, drought, flood, hailstorm, cyclone, pests and diseases. The scheme is implemented by the Agriculture
Insurance of India Ltd. (AIC).
Agriculture Marketing : The Government has been playing an important role in developing Agriculture Marketing
system in the country. The Marketing Division of the Department of Agriculture and Cooperation (DAC) is concerned
with the policy and programme aspects of agricultural marketing and its implementation by the three organizations
under its administrative control, namely, the Marketing & Inspection (DM1), Faridabad, Ch. Charan Singh National
Institute of Agricultural Marketing (NIAM), Jaipur and Small Farmers Agri-Business Consortium (SFAC), New Delhi.
Standardization and Grading : The Agricultural Produce (Grading & Marketing) Act, 1937 provides for grading and
marking of agricultural and other produce. The Act empowers Central Government to make Rules for : (a) fixing grade
designation to indicate quality of any scheduled article, (b) defining quality indicated by every grade designation and
(c) specifying grade designation marks to represent particular grade designation. Standards notified as per provisions
of the Act are popularly called Agmark Standards. These standards differentiate between quality and 2-3 grades are
prescribed for each commodity. Grades help farmers/traders to get prices for their agricultural commodities as per the
quality produced by them and consumers get the desired quality.
Emphasis on Organic Methods and Eco-Sensitive Farming : Government is promoting Organic farming through
various schemes like National Project on Organic Farming (NPOF), National Horticulture Mission (NHM),
Horticulture Mission for North East and Himalayan State (HMNEH), National Project on Management of Soil Health
and Fertility (NPMSHF) and Rashtriya Krishi Vikas Yojana (RKVY). Under National Project on Organic Farming
(NPOF), financial assistance is provided as back ended subsidy through NABARD for setting up/strengthening of
existing bio-fertilizer and / or biopesticide production units, assistance upto @25 per cent of total financial outlay or
Rs. 40 lakh, whichever is less, and for setting up of Fruit and Vegetables Wastes/ Agro-Wastes Compost Production
Units @ 33 per cent of total financial outlay or 60 lakh, whichever is less. Under National Horticulture Mission (NHM).
CHAPTER- 4 | AGRICULTURE
INDIA YEAR BOOK-2015| Part - I 24
For eco-sensitive farming, Government is promoting balanced use of fertilizers and various measures taken to promote
balanced use of fertilizers are as below:
• National Project on Management of Soil Health and Fertility has been under implementation since 2008-09 to
promote soil test based, balanced and judicious use of chemical fertilizers in conjunction with organic sources of
nutrients to improve soil fertility.
• Indian Institute of Soil Science (IISS), Bhopal has been sanctioned a project for preparation of Geo-Referenced
Soil Fertility maps including interlinking of soil fertility status with Soil Test Crop Response (STCR) data to
generate site specific recommendations for use of chemical fertilizers in 19 major states (171 districts).
• Ministry of Agriculture has been encouraging use of customized fertilizers with an objective to promote site
specific nutrient management so as to achieve maximum fertilizer use efficiency. These customized fertilizers are
multi-nutrient carrier designed to contain macro and micro nutrients and are soil and crops specific, formulated
on the basis of soil testing results.
• Financial assistance for two days training for farmers on balanced use of fertilizers is provided @ 10,000/- per
training through State Government/ ICAR/SAUs/Fertilizer Industry.
• Field demonstrations on balanced use of fertilizers are conducted at farmers field for which financial assistance
of 10,000/- per demonstration of one acre area is provided through State Government /ICAR/SAUs/Fertilizer
Industry.
• For confidence building of farmers about usefulness of balanced use of fertilizers, soil testing laboratories
conduct Frontline Field Demonstrations (FFD) on balanced use of fertilizers and financial assistance @ 20,000/-
per FFD is provided.
Livestock Production : Livestock production and agriculture are intrinsically linked, each being dependent on the other, and both crucial for overall food security. According to the estimates of the Central Statistics Office (CSO), the value of output from livestock sector at current prices was about 5,37,535 crore during 2012-13 which is about 25.63% of the value of output from total agricultural, fishing, and forestry sector at current price and 26.02% at constant prices (2004-05). Milk Production : India continues to be the largest producer of milk in the world. Several measures have been initiated by the Government to increase the productivity of livestock, which has resulted in increasing the milk production significantly from the level of 102.6 million tonnes at the end of the Tenth Plan (2006-07) to 127.9 million tonnes at the end of the Eleventh Plan (2011-12). Milk production in the beginning of Twelfth Plan (2012-13) was 132.43 million tonnes with an annual growth rate of 3.54%. The per capita availability of milk was around 296 grams per day in 2012-13. Fisheries Production : The country has vast potential for fisheries in view of our long coastline of about 8,118 kms apart from the inland water resources. As per the estimates of CSO, the value of output from fisheries sector at current price was about 91,541 crore during 2012-13 which was about 4.36% of the value of agricultural and allied sector output at current price. India is the second largest producer of fish and the second largest producer of fresh water
fish in the world. Fish production has increased from 41.57 lakh tonnes (24.47 Iakh tonnes for marine and 17.10 lakh tonnes for inland fisheries) in 1991-92 to 90.40 lakh tonnes (33.21 lakh tonnes for marine and 57.19 lakh tonnes for inland fisheries) in 2012-13. Agriculture Research : Agriculture in India accounts for over 14% of the GDP and 12% of country’s exports, providing employment to over 50% of the work force and striving towards food security as well as inclusive growth and development. This has been possible through pertinent agricultural research, education and extension enabling development and infusion of appropriate technologies by ICAR Institutes and Agricultural Universities, and taking them across to farmers through Krishi Vigyan Kendras (KVKs). National e-Governance Plan in Agriculture (NeGP-A) : This Centrally Sponsored Mission Mode Project (MMP) sanctioned at a total cost Rs. 227.79 crore for implementation in seven States during Phase-I of the programme introduced during the last phase of the 11th plan (2010-11). The NeGP-A aims to achieve rapid development of agriculture in India through the use of ICT by ensuring timely access to agriculture related information for the farmers of the country.
CHAPTER-5 | CULTURE AND TOURISM
INDIA YEAR BOOK-2015| Part - I 25
CHAPTER FIVE | CULTURE AND TOURISM
CULTURE plays an important role in the development agenda of any nation. Ministry of Culture preserves and
conserves ancient cultural heritage and promotes art and culture, both tangible and intangible. The Ministry also
nurtures Gandhian Heritage and is responsible for commemoration of important historical events and centenaries of
great personalities.
INTANGIBLE CULTURAL HERITAGE
LALIT KALA AKADEMI : To promote and propagate understanding of Indian art, both within and outside the
country, the Government of India established Lalit Kala Akademi (National Akademi of Arts) at New Delhi on 5
August, 1954.
The Lalit Kala Akademi accords recognition to art institutions/ associations and extends financial assistance to these
bodies as well as State Academies. It also gives scholarships to deserving young artists belonging to its regional
centres. The Akademi brings out monographs on the works of Indian contemporary artists in Hindi and English and
books on contemporary, traditional, folk and tribal arts authored by eminent writers and art critics, biannual art
journals, Lalit Kala Contemporary (English), Lalit Kala Ancient (English) and Samkaleen Kala (Hindi).
SANGEET NATAK AKADEMI : Sangeet Natak Akademi, India’s National Academy of Music, Dance and Drama, is a
pioneer in creation of modern India that led politically to India’s freedom in 1947. The ephemeral quality of the arts,
and the need for their preservation led to the adapting of a democratic system in which the common man had the
opportunity to learn, practise and propagate the art.
In 1961, Sangeet Natak Akademi was reconstituted by the Government as a society and registered under the Societies
Registration Act, 1860 (as amended in 1957). These functions are set down in the Akademi’s Memorandum of
Association, adopted at its registration as a society on 11th September, 1961.
The Akademi has worked towards building up a unified structure of support for the practice of music, dance and
drama in India encompassing traditional and modern forms, and urban as well as rural environments. The festivals of
music, dance and drama presented or promoted by the Akademi are held all over India.
PERFORMING ARTS
MUSIC : Two main schools of classical music—Hindustani and Carnatic continue to survive through oral tradition
being passed on by teachers to disciples. This has led to the existence of family traditions called gharanas and
sampradayas.
DANCE : Dance in India has an unbroken tradition of over 2,000 years. It themes are derived from mythology, legends
and classical literature, two main divisions being classical and folk. Classical dance forms are based on ancient dance
discipline and have rigid rules of presentation. Important among them are Bhrata Natyam, Kathakali, Kathak, Manipuri,
Kuchipudi and Odissi. Bharata Natyam, though it derives its roots from Tamil Nadu, has developed into an all India
form. Kathakali is a dance form of Kerala. Kathak is a classical dance form revitalized as a result of Mughal influence on
Indian culture. Manipur has contributed to a delicate, lyrical style of dance, called Manipuri, while Kuchipudi is a dance
form owing its origin to Andhra Pradesh. Odissi from Odisha, once practised as a temple dance, is today widely
exhibited by artistes across the country. Each region limits ethnic folk/tribal dances.
CHAPTER-5 | CULTURE AND TOURISM
INDIA YEAR BOOK-2015| Part - I 26
DANCES OF INDIA
Dance in India has an unbroken tradition of over 2000 years. Two main divisions of its forms are classical and folk.
The criteria for being considered as classical is the sty1e’s adherence to the guidelines laid down in Natyashastra,
which explains the Indian art of acting. The Sangeet Natak Akademi currently confers classical status on eight Indian
Zero Duty Export Promotion Capital Goods (EPCG) Scheme : The EPCG scheme allows import of capital goods on
zero duty for preproduction, production and post-production subject to a specific export obligation equivalent to 6
times of duty saved amount to be fulfilled in 6 years reckoned from authorization issue-date. This export obligation is
over and above the average level of exports of same and similar products achieved by the applicant in the preceding
three licensing years.
Widening the Scope of Utilization of Duty Credit Scrip : Duty Credit Scrips issued under Focus Market Scheme,
Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) can be used for payment of service tax on
procurement of services within the legal framework of service tax exemption notifications under the Finance Act, 1994.
Holder of the scrip shall be entitled to avail drawback or CENVAT credit of the service tax debited in the scripts as per
Department of Revenue rules.
Incremental Exports Incentivisation Scheme : Government has announced Incremental Export Incentivisation Scheme
on 26th December, 2012 for the exports made during January, 2013 to March, 2013. This scheme is available for exports
made to USA, EU and Asia. It has been agreed to extend this scheme for the year 2013-14. The calculation of the benefit
shall be on annual basis under the extended scheme.
CHAPTER-7 | COMMERCE
INDIA YEAR BOOK-2015| Part - I 35
The Government has also agreed to include additional countries under Incremental Exports Incentivisation Scheme.
Fifty three countries of Latin America and Africa have been added with the objective to increase India’s share in these
markets. The present export to each of these markets is less than US$ 100 million.
INDIA’S ENGAGEMENT IN FREE TRADE AGREEMENTS (FTAS) : India has always stood for an open, equitable,
predictable, non-discriminatory and rule based international trading system. FTAs, in India’s point of view, are the
‘building blocks’ towards the overall objective of trade liberalization and should complement the multilateral trading
system.
FREE TRADE AGREEMENT (FTA) TERMINOLOGY
Preferential Trading Agreement (PTA) Tariff liberalization on a limited number of lines e.g. India-
Mercosur PTA.
Free Trade Agreement (PTA) Elimination of Tariffs on items covering substantial bilateral
trade between the partner countries e.g. India - Sri Lanka
FTA
Comprehensive Economic
Cooperation Agreement (CECA)
Comprehensive Economic
Partnership Agreement (CEPA)
CECA or CEPA or BTIA terms are used to describe
Agreements which consist of an integrated package of
Agreement on Goods, Services, Investment, Mutual
Recognition, Intellectual Property etc. e.g. India-Korea
CEPA.
Broad based Trade and Investment Agreement
(BTIA)
ACRONYMS - REGIONAL GROUPINGS AND ITS MEMBERS
S.No. Acronym Grouping Number of
Members
Countries
Member Countries Name of
Member Countries
1. APTA Asia Pacific Trade Agreement 5 Bangladesh, China, India,
Republic of Korea, Sri Lanka.
2. ASEAN Association of Southeast Asian
Nations
10 Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar,
Philippines, Singapore,
Thailand and Vietnam.
3. BIMSTEC Bay of Bengal Initiative on Multi-
Sectoral Trade and Economic
Cooperation
7 Bangladesh, India,
Thailand, Bhutan
Myanmar, Sri Lanka, and
Nepal.
4. EFTA European Free
Trade Association
4 Iceland, Norway,
Liechtenstein and
Switzerland.
5. GCC Gulf Cooperation Council 6 Saudi Arabia, Oman,
Kuwait, Qatar and Yemen.
CHAPTER-7 | COMMERCE
INDIA YEAR BOOK-2015| Part - I 36
6. IBSA India South Brazil and Africa 3 India, Brazil and South
Africa.
7. MERC
OSUR
Southern Common Market
(Spanish: Mercado Comun del
Sur-)
4 Argentina, Brazil, Paraguay
and Uruguay.
8. SACU Southern African Customs Union 5 South Africa, Botswana,
Lesotho, Swaziland and
Namibia.
9. SAFTA South Asia Free Trade
Agreement
7 India, Pakistan, Nepal, Sri
Lanka, Bangladesh, Bhutan
and the Maldives
10. IOR-ARC Indian Ocean Rim Association for
Regional Cooperation
20 plus 7
Dialogue
Partners
Australia, India, Kenya,
Mauritius, Oman, Singapore,
South Africa, Malaysia,
Madagascar, Mozambique,
Indonesia, Sri Lanka,
Tanzania, Yemen,
Bangladesh, Iran, Thailand,
United Arab Emirates,
Seychelles and the Union of
Comcros
Dialogue Partners
China, Egypt, France, Jap
an, United Kingdom and the
United States of America
11. RCEP 10 ASEAN Members States
(Brunei, Cambodia Indonesia,
Laos, Malaysia, Philippines,
Singapore, Thailand and
Vietnam)+ its 6 FTA Partner
countries (Australia, China,
India, Japan, South Korea and
New Zealand
Doha Round of Trade Negotiations in the World Trade Organisation
The 2001 Ministerial Conference in Doha had mandated a comprehensive development agenda for multilateral trade
negotiations. This Round of trade negotiations is still underway. In the backdrop of the global economic downturn of
2008 and the inability of the membership to reach consensus on the full Doha Development Agenda, it was decided at
the Eighth Ministerial Conference in 2011 to focus on areas where convergence was possible. Accordingly, after
deliberations in the WTO in 2013, it was agreed that WTO members would strive for an agreement on Trade
Facilitation, a few areas in agriculture, development issues and issues of relevance for LDCs.
CHAPTER-7 | COMMERCE
INDIA YEAR BOOK-2015| Part - I 37
WORLD TRADE ORGANIZATION (WTO)
The WTO is the principal international institution for the management of international trade. It was created at the
Uruguay Round of trade talks in 1994, when it was agreed to transform the General Agreement on Tariffs and
Trade (GATT) into a permanent institution. The Uruguay Round was a round of GATT negotiations started in
Uruguay in 1986 and designed to promote free trade. It was the origin of the WTO and a range of multilateral
agreements. It currently has 146 Member States. The WTO is responsible for:
• Providing a forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies.
The WTO also administers WTO agreements, provides technical assistance to developing countries and cooperates
with other international bodies on trade issues.
The WTO is the only organization that can enforce its own rules - which makes it an extremely powerful
organization. The WTO dispute settlement system is used when countries differ in their interpretation of the WTO
agreement. If two or more states have a dispute over, for example, a health-related trade measure, they have the
right to invoke the WTO dispute settlement process. The WTO cannot itself prosecute a member: it is up to the
countries involved to bring the dispute to the WTO. Only the complainant can argue the case and only if it relates
to WTO agreements or commitments. What makes the WTO unique is that sanctions can be imposed by the WTO
against countries that lose a case in this procedure. For example, a complainant may be allowed to impose import
tariffs on products from the offending country to a certain value equal to the compensation decided by the WTO.
The main pillars of the WTO are the multilateral trade agreements, including the General Agreement on Trade in
Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property rights (TRIPS). These
agreements do contain some provisions for the protection of public health and safety but they remain controversial.
In theory, all members have an equal voice in the consensus decision-making process. However, in practice the
wealthier nations dominate. With the acceleration of free trade, many believe it is imperative that the WTO serves
to accelerate world economic activity. However, others are concerned that this should not be done without
reference to the social and cultural consequences, particularly in terms of the marginalization of vulnerable groups.
NINTH MINISTERIAL MEETING OF THE WTO : The Ninth Ministerial Conference of the WTO took place in 3 to
7th December, 2013. Ministers issued a Declaration and ten ministerial decisions were taken on various issues
including Trade Facilitation, issues relating to agricultural trade rules and others relating to development, Least
Developed Countries (LDCs). Amongst these Decisions, two ministerial particular significance for India - the
ministerial decision for trade facilitation and the ministerial decision on Public Stockholding for Food Security
Purposes.
Trade Facilitation was brought into the agenda mainly by the developed countries. The issue of the rules relating to
public stockholding for food security purposes was brought into the agenda of the Ninth Ministerial Conference
through India’s efforts.
TRADE FACILITATION : With the lowering of tariffs and the removal of quantitative restrictions, the focus in
international trade has shifted to the simplification of trade procedures in general and customs procedures in
particular. Negotiations for a new multilateral Agreement on Trade Facilitation began in Geneva as part of the Doha
Round of trade negotiations which was launched in 2001.
The Trade Facilitation Agreement, which was also endorsed by the India at the Ninth Ministerial Conference, is
basically aimed at greater transparency and simplification of customs procedures, use of electronic payments and risk
management techniques and faster clearances at ports.
CHAPTER-7 | COMMERCE
INDIA YEAR BOOK-2015| Part - I 38
TRADE FACILITATION AGREEMENT
In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement at the Bali Ministerial Conference, as part of a wider “Bali Package”. Since then, WTO members have undertaken a legal review of the text. The resulting final text is available here. In line with the decision adopted in Bali, WTO members adopted on 27 November 2014 a Protocol of Amendment to insert the new Agreement into Annex 1A of the WTO Agreement. The Trade Facilitation Agreement will enter into force once two-thirds of members have completed their domestic ratification process.
The Trade Facilitation Agreement contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES : Public stockholding programmes for food security
is allowed as per the WTO Agreement on Agriculture. However, if food for such programmes is acquired at
administered prices and not at market prices, then there deemed to be support to farmers. As per WTO rules
negotiated in the Uruguay Round has to be kept within a limit of 10 per cent of the value of production of the product
in question. This cap can constrain procurement and food aid programmes in developing countries. The draft
agriculture negotiating text of December, 2008 seeks to change this. India, as part of a coalition of developing countries
known as the ‘G-23’, proposal an amendment of the WTO’s Agreement on Agriculture to change these rules.
DEVELOPMENTS FOLLOWING THE MINISTERIAL CONFERENCE : While there was a focus on finalising the
work on implementation of the Trade Facilitation Agreement, no such commitment was shown in implementation of
other ministerial decisions taken in Bali. There was no progress on the ministerial decision on public stockholding for
food security which is very important for India and other developing countries. Some of the members blocked
discussions on the issue seeking information not relevant to the implementation of the issue.
The market price support (or Minimum Support Price in Indias case) and procurement/ stockholding of food grains at
MSP is a genuine requirement for India to ensure food and livelihood security of its largely poor population. India
cannot move away from the Market Price Support like developed countries with deep pockets.
It is important for developing countries to be able to guarantee some minimum returns to their poor farmers so that
they are able to produce enough for themselves and for domestic food security. If the Doha Round had been
concluded, we would have achieved substantial reductions and disciplines on agriculture support and export
subsidies by the developed world, who are allowed such subsides due to unbalanced Uruguay Round Agreements.
In view of very little commitment shown by members from the developed countries in implementing the Bali
Ministerial Decisions, except the one on Trade Facilitation, the apprehension was that none of the developed countries
would come back to the negotiating table to discuss this issue or any of the other nonbinding outcomes of the Bali
Ministerial Conference. The result would be that the developed countries would have achieved their desired
Agreement on Trade Facilitation. Developing countries would have lost the bargaining space for an outcome on food
security. Moreover, any chance to conclude the Doha Round will be lost. The developed countries will then try to bring
new issues of their interest into the WTO, none of which would be in the interest of the developing countries.
At a meeting of the Preparatory Committee on 2nd July, 2014, India stated categorically that till “we have an assurance
and visible outcomes which convince developing countries that members will engage in negotiations with
commitment to find a permanent solution on public stockholding and all other Bali deliverables, especially those for
the LDCs, India will find it difficult to join the consensus on the Protocol of Amendment.”
CHAPTER-7 | COMMERCE
INDIA YEAR BOOK-2015| Part - I 39
Despite criticism India reiterated its commitment to implementation of all the Bali Decisions including Trade
Facilitation in various meetings in the WTO and outside it bilaterally and in various for as like the G20 and BRICS
Trade Ministers Meetings in July, 2014; India’s concerns related to the uneven progress implementation of the Bali
Ministerial Decisions, in favour of only Trade Facilitation. India explained its sensitivities on the Food Security issue
and sought equal level of commitment and progress in working on the issue. On 25th July, 2014, India made a
statement in the WTO General Council conveying that the adoption of the Trade Facilitation (TF) protocol must be
postponed till a permanent solution on public stockholding for food security is found. India also offered suggestions
on the procedure to be followed in order to ensure time bound delivery of an outcome on public stockholding for food
security is found. India also offered suggestions on the procedure to be followed in order to ensure time bound
delivery of an outcome on public stockholding for food security. India also made a case for adopting a similar
approach on all the elements of the Bali package including the LDC issues.
NEW EXPANDED DUTY FREE TARIFF PREFERENCE (DFTP) SCHEME FOR LEAST DEVELOPED COUNTRIES
(LDCS) : One of the elements of the Hong-Kong Ministerial Declaration of December, 2005 has been to extend Duty
Free Quota Free (DFQF) access to the Least Developed Countries (LDCs).
In line with its commitments, India became the first developing country to extend this facility to Least Developed
Countries (LDCs). India announced the Duty Free Tariff Preference (DFTP) Scheme for LDCs in the year 2008. The
Scheme was announced to give support to the LDCs in their trade initiatives and upon full implementation, granted
duty free access on about 85% of India’s total tariff lines and preferential access (Positive List) on about 9% of tariff
lines. Only 6% tariff lines were under the Exclusion List.
ROLE OF STANDARDS IN INTERNATIONAL TRADE : In today’s market, both domestic as well as international,
Standards have assumed tremendous significance. As globally tariffs are going down, the complexities connected with
the international trade are also increasing. In order to ensure supply of quality, safe and environment-friendly
products to our consumers, it is important that our industrial enterprises and business operators also adopt the
concept of standards and technical regulations in their respective oganisations.
The WTO agreement on ‘Technical Barriers to Trade’ and the agreement on the Application of Sanitary and
Phytosanitary Measure are the mother agreements on standards and conformity assessment at the international level.
These Agreements try to balance the competing demands for domestic regulatory autonomy and the global
harmonization of products standards in a manner which is trade friendly. Thus, these agreements attempt to prevent
standards from becoming a protectionist device; however, in practice we notice the trend otherwise. Therefore, it is
extremely important; for India to create a conducive atmosphere in which industry is encouraged, incentivized and
facilitated to follow a standard driven culture. This would not only add value to our products but would also make our
products competitive internationally. As a consequence, industry would also continuously strive for technology
upgradation and more value addition.
INDIA-COMESA JOINT STUDY GROUP (JSG) : Common Market for East and Southern Africa (COMESA) is
Africa’s largest economic community comprising of 19 member states namely Burundi, Comoros, Democratic Congo,
17 Tatipaka, AP Oil & Natural gas Corporation Total 0.66
18 Bina Bharat Oman Refinery Ltd. 120.66
19 Bathinda HPCL Mittal Energy Ltd. 6.00
Total 9.00
Private Sector Refineries 15.00
20 Jamnagar Reliance Industries Limited 33.00
21 SEZ, Jamnagar 27.00
22 Vadinar Essar Oil Limited 18.00
Total 78.00
Grand Total 213.66
HINDUSTAN PETROLEUM CORPORATION LIMITED : Hindustan Petroleum Corporation Limited (HPCL) is a
mega Public Sector Undertaking (PSU) with “Navratna” status. It has two refineries; one in Mumbai (west coast)
having a capacity of 6.5 MMTPA and the other in Visakhapatnam (east coast) with a capacity of 8.3 MMTPA.
BHARAT PETROLEUM CORPORATION LIMITED : Bharat Petroleum Corporation Limited (BPCL) is an integrated
oil company, in the downstream sector, engaged in refining of crude oil and marketing of petroleum products. It has
CHAPTER-11 | ENERGY
INDIA YEAR BOOK-2015| Part - I 64
also diversified into production and marketing of petrochemical feedstock. BPCL has refineries at Mumbai and Kochi
with a combined refining capacity of 21.5 MMTPA.
COAL RESERVES : The coal reserves in India up to the depth of 1200 meters have been estimated by the Geological
Survey of India at 301.56 billion tonnes as on 1st April 2014. Coal deposits are chiefly located in Jharkhand, Odisha,
Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra.
NEYVELI LIGNITE CORPORATION LIMITED (NLC) : NLC was registered as a company on November 14, 1956.
The mining operations in Mine-I were formally inaugurated in 1957. Neyveli Lignite Corporation has conferred with
‘Navratna’ status since April 2011. NLC presently operates four open cast lignite mines viz., Mine I, Mine IA and Mine
II in Tamil Nadu and Barsingsar Mine in Rajasthan, aggregating to a total capacity of 30.6 MTPA and four thermal
power stations viz., TPS-I and TPS-I Expansion and TPS II with a capacity of 2740 MW located in Tamil Nadu and
Barsingsar TPS in Rajasthan.
JAWAHARLAL NEHRU NATIONAL SOLAR MISSION : India has planned harnessing solar energy potential in a
big way. In January 2010, as one of the mission under the National Action Plan on Climate Change, the Jawaharlal
Nehru National Solar Mission (JNNSM) was launched. Broadly, the Mission aims, to install 20 GW grid-connected and
2 GW off-grid solar power, 20 million sqm of solar thermal collector area; and 20 million rural households to have solar
home lighting by year. The Mission supports research, Development and innovation to achieve grid-parity in the
shortest time frame. The Mission will be implemented in three phases. The first phase is up to March 2013, the second
till March 2017 and the third phase will continue till March, 2022. Around 1000 MW of grid connected solar power
capacity has already been set up. The reverse bidding process adopted under the mission has led to a significant
reduction in solar power tariff within one and half year of its implementation.
INTERNATIONAL COOPERATION : During the year 2013-14, the Ministry of New and Renewable Energy took
various initiatives to promote cooperation with other countries in the field of renewable energy. Memoranda of
Understanding (MoUs)/Agreements/Letter of intent (LoT) etc were signed and Bilateral/Multinational Meeting/Joint
Working Group Meetings were convened and Participated by MNRE. The Ministry also gets support from various
international/ Multinational funding agencies, like World Bank, United Nations Development Programme (UNDP),
Asian Development Bank (ADB) and United Nations Industrial Development Organization (UNIDO) and Global
Environment Facility (GEF), who are providing project based assistance for renewable energy programmes in India.
CHAPTER-12 | ENVIRONMENT
INDIA YEAR BOOK-2015| Part - I 65
CHAPTER TWELVE| ENVIRONMENT
THE Ministry of Environment, Forest and Climate Change (MoEFCC) is the nodal agency in the Central Government
for overseeing the implementation of India’s environment and forest policies and programmes relation to conservation
of the country’s natural resources including lakes and rivers, its biodiversity, forests and wildlife, ensuring the welfare
of animals and prevention and, abatement of pollution.
India is a party to five major international conventions related to Wild Life conservation, viz, Convention on
International Trade in Endangered Species of Wild Fauna and Flora (CITES), International Whaling Commission
(IWC), United Nations Educational, Scientific and Cultural Organisation-World Heritage Convention (UNESCO-
WHC) and the Convention on the Conservation of Migratory Species of Wild Animals (CMS).
MANGROVES : India has a total mangrove cover of 4,662.56 sq.km i.e. 0.14% of the country’s land area, 3% of the
global mangroves area and 8% of Asia’s mangroves. Mangroves are plants that survive high salinity tidal regimes,
strong wind velocity, high temperature and muddy anaerobic soil-a combination of conditions hostile for other plants.
The mangrove ecosystem constitute a symbiotic link or bridge between terrestrial and marine ecosystems. However,
not all coastal areas are suitable for mangrove plantation as it requires an appropriate mix of saline and freshwater,
and soft substrate like mudflats to enable it to grow and perpetuate.
CORAL REEFS : The Indian reef area is estimated to be 2,373.87 sq. km. The four major coral reef areas identified for
intensive conservation and management in the country are:
i) Gulf of Mannar,
ii) Gulf of Kachchh,
iii) Lakshadweep and
iv) Andaman and Nicobar Islands.
The emphasis is more on preventive aspects through monitoring and surveillance as the restoration work is both costly
and time consuming. The Ministry provides financial assistance to the state forest departments for all the four
identified coral reef areas for activities like monitoring, surveillance, education and awareness. Besides, the Ministry
also supports research and development activities with emphasis on targeted research on coral biodiversity, its
management and various aspects of pollution in these areas.
GREAT BARRIER REEF
The Great Barrier Reef is a site of remarkable variety and beauty on the north-east coast of Australia. It the world's most extensive stretch of coral reef and is probably the richest area in terms of faunal diversity in the world. Its great diversity reflects the maturity of an ecosystem which has evolved over millions of years on the north-east continental shelf of Australia. The site contains a huge diversity of species including over 1,500 species of fish, about 360 species of hard coral, 5,000 species of mollusc, and more than 175 species of bird, plus a great diversity of sponges, anemones, marine worms and crustaceans, among others. The reef system, extending to Papua New Guinea, the reef comprises some 2900 individual reefs of all sizes and shapes covering more than 20,000 km2, including 760 fringing reefs, which range in size from under 1ha to over 10,000 ha and vary in shape to provide the most spectacular marine scenery on Earth. There are approximately 600 continental islands including many with towering forests and freshwater streams, and some 300 coral cays and unvegetated sand cays. A rich variety of landscapes and seascapes, including rugged mountains with dense and diverse vegetation and adjacent fringing reefs, provide spectacular scenery. The form and structure of the individual reefs show great variety. Two main classes may be defined: platform or patch reefs, resulting from radial growth; and wall reefs, resulting from elongated growth, often in areas of strong water currents. There are also many fringing reefs where the reef growth is established on subtidal rock of the mainland coast or continental islands.
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The site includes major feeding grounds for the endangered dugong and nesting grounds of world significance for two endangered species of marine turtle, the green and the loggerhead, as well as habitat for four other species of marine turtle; given the severe pressures being placed on these species elsewhere, the Great Barrier Reef may be their last secure stronghold. It is also an important breeding area for humpback and other whale species. A wide range of fleshy algae occurs, many of which are small and inconspicuous but which are highly productive and are heavily grazed by turtles, fish, molluscs and sea urchins. In addition, algae are an important component of reef building processes. 15 species of seagrass grow throughout the reef area forming over 3,000 km2 of seagrass meadows and providing an important food source for grazing animals, such as dugongs. The Great Barrier Reef, and in particular the northern sector, is important in the historic and contemporary culture of the Aboriginal and Torres Strait Islander groups of the coastal areas of north-east Australia. This contemporary use of and association with the Marine Park plays an important role in the maintenance of their cultures and there is a strong spiritual connection with the ocean and its inhabitants.
CBD, COP-11 and NBA (BIODIVERSITY)
CONVENTION ON BIOLOGICAL DIVERSITY : The Convention on Biological Diversity (CBD) is one of the key
agreements adopted during the Earth Summit held in Rio de Janeiro in 1992. The three objectives of the CBD are:
conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of benefits
arising out of the use of genetic resources. Pursuant to the ratification of the CBD by India on 18 February 1994, several
steps were initiated to meet the commitments under the Convention, and to realize the opportunities offered by the
Convention. These efforts were aimed at bringing the legislative, administrative and policy regimes in tune with the
three-fold objectives of the CBD. India enacted the Biological Diversity Act in 2002 to give effect to the provisions of
this Convention. Under this Act, a National Biodiversity Authority (NBA) was set up in October, 2003 in Chennai. In
2000, a Cartagena Protocol on Biosafety (CPB) was adopted under the aegis of the CBD. The objective of CPB is to
ensure safe transfer, handling and use of living modified organisms resulting from modern biotechnology. India is a
party to the CBD as well as CPB.
NATIONAL BIODIVERSITY AUTHORITY : At the national level, National Biodiversity Authority (NBA) was
established by the Government of India in October, 2013 at Chennai (Tamil Nadu) under Section (8) of the Biological
Diversity Act. The State Biodiversity Boards (SBB) are to be established by the State Governments and Biodiversity
Management Committees (BMCs) to be constituted by the local bodies.
NBA is an autonomous, statutory and regulatory organization which is intended to implement the provisions of
Biological Diversity Act, 2002.
The main objectives of NBA are :
• To regulate access to biological resources of the country to conserve and sustainable use of biological diversity.
• To respect and protect the knowledge of local communities related to biodiversity
• To secure sharing of benefits with the local people as conservers of biological resources and holders of
knowledge and information relating to the use of biological resources.
• Conservation and development of area of importance from the view point of biological diversity by declaring
them as biological diversity heritage sites.
• Protection and rehabilitation of threatened species, involvement of institutions of state government in the broad
scheme of implementation of the Biological Diversity Act through constitution of committees.
BIOSAFETY - GEAC, CPB and COP-MOP
GENETIC ENGINEERING APPRAISAL COMMITTEE (GEAC) : The Ministry of Environment, Forests & Climate
Change (MoEFCC), under the Environment (Protection) Act, 1986 has notified the “Rules for the Manufacture, Use;
Import, Export and Storage of Hazardous Microorganisms/Genetically Engineered Organisms or Cells, 1989” (Rules,
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1989). The rules also cover application of hazardous microoganisms which may not be genetically modified.
Hazardous microoganisms include those which are pathogenic to animals as well as plants.
The Genetic Engineering Appraisal Committee (GEAC), the apex body under the Rules, 1989 has the mandate to
approve large scale trials and environmental release of Genetically Modified Organisms (GMOs) and ensure that
research, development and testing of GMOs prior to environment release are conducted in a safe and scientific manner
through appropriate implementation of Rule 1989 and biosafety guidelines.
CARTAGENA BIO-SAFETY PROTOCOL (CPB) : The Cartagena Protocol on Biosafety (CPB) was negotiated under
the aegis of the Convention on Biological Diversity (CBD) and adopted on 29th January 2000. India is a party to the
Protocol. The Protocol has come into force from 11th September 2003. As of date 163 countries are Parties to the
Protocol. The main objective of the Protocol is to ensure safe transfer, handling and use of living modified organisms
resulting from modem biotechnology that may have adverse effect on the conservation and sustainable biological
diversity, taking into account risk to human health.
FOREST CONSERVATION : The Forest (Conservation) Act, 1980 came into effect from October 25,1980 which
provides for prior approval of the Central Government for diversion of forest lands for non-forestry purposes. In the
national interest and in the interest of posterity, this Act, therefore, regulates the diversion of forest lands to non-
forestry purposes. The objective of the Act is to regulate indiscriminate diversion of forest lands for non-forestry uses
and to maintain a balance between developmental needs of the country and the conservation of natural heritage. The
guidelines are issued under the Act from time to time, to simplify the procedures, to cut down delays and to make the
process transparent.
WILDLIFE CRIME CONTROL BUREAU : The Wildlife Crime Control Bureau (WCCB) was constituted as a statutory
body under the Wildlife (Protection) Act, 1972, on June 6, 2007 to combat wildlife crime in the country. The Bureau has
been envisaged as a multi-disciplinary body with officials from Police, Forest Departments and Customs. It became
operational in 2008. The Bureau has its headquarters at Delhi, five regional offices at Delhi, Kolkata, Mumbai, Chennai
and Jabalpur and three sub-regional offices at Guwahati, Amritsar and Kochi. WCCB has been tasked with the
following functions under Section 38 (Z) of the Wild Life Protection Act, 1972.
WILDLIFE INSTITUTE OF INDIA : Wildlife Institute of India (WIT) was established in 1986, as an autonomous
Institute of the Ministry. The Institute has emerged as a premier training and research institution in the field of wildlife
and protected area management in South and South East Asia. Its mandate is to generate quality formation and
knowledge products in wildlife science and mainstream it in capacity building programmes for various target groups
and provide advisory support to central and state governments.
CENTRAL ZOO AUTHORITY : The Central Zoo Authority (CZA) was established in 1992 under the provisions of the
Wildlife (Protection) Act, 1972 to oversee the functioning of zoos in the country with the view to enhancing their role in
conservation. CZA is a twelve member body. Minister of State Environment and Forests, Government of India is the
ex-officio Chairman of the Central Zoo Authority and Member Secretary, Central Zoo Authority is the Chief Executive
Officer of the Authority.
PROJECT ELEPHANT : Project Elephant (FE) was launched by the Government in 1991-92 as a centrally sponsored
scheme with the following objectives: to protect elephants, their habitat and corridors; to address issues of man-animal
conflict; welfare of domesticated elephants. Financial and technical support is being provided to major elephant,
bearing states in the country.
PROJECT TIGER
NATIONAL TIGER CONSERVATION AUTHORITY : The centrally sponsored scheme “Project Tiger” was
launched in April, 1972 with the objective “to ensure maintenance of a viable population of tigers in India for scientific,
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economic, aesthetic, cultural and ecological values, and to preserve for all times, areas of biological importance as a
national heritage for Life benefit, education and enjoyment of the people’.
NATIONAL WETLAND CONSERVATION PROGRAMME : The National Wetland Conservation Programme
(NWCP) was initiated in 1987 with the following objectives to lay down policy guidelines for conservation and
management of wetlands in the country; to provide financial assistance for undertaking intensive conservation
measures in the identified wetlands; to monitor implementation of the programme; and to prepare an inventory of
Indian wetlands.
RAMSAR CONVENTION : Twenty-six sites have been designated as Ramsar sites in the country. Six more wetlands
are under process of being designated as Ramsar sites. India represented Wetlands International on the Board of
Directors and was elected as member of Supervisory Council of Wetlands International twice which is a partner
organization of the Ramsar Convention. India is also a partner to the Himalayan initiatives alongwith other Himalayan
countries. Indian delegation participated in Ramsar Convention COP-Il meeting held at Bucharest, Romania in 2012
and intervened in almost all 22 resolutions passed during the convention.
REGENERATION AND ECO-DEVELOPMENT
NATIONAL AFFORESTATION AND ECO-DEVELOPMENT BOARD (NAEB) : In order to promote afforestation,
tree planting, ecological restoration and eco-development activities in the country, the National Afforestation and Eco-
development Board (NAEB) was set up in August 1992. Special attention is also given by NAEB to the regeneration of
degraded forest areas and lands adjoining forest areas, national parks, sanctuaries and other protected areas as well as
the ecologically fragile areas like the Western Himalayas, Aravalis, Western Ghats, etc.
G.B. PANT INSTITUTE OF HIMALAYAN ENVIRONMENT AND DEVELOPMENT : G.B. Pant Institute of
Himalayan Environment and Development (GBPIHED) was established in August, 1988 by the Ministry of
Environment and Forests, as an autonomous institute, with a mandate of achieving sustainable development and
environmental conservation in the Indian Himalayan Region (IHR). The Institute executes its mandate through its
headquarters located at Kosi-Katarmal, Almora (Uttarakhand), and four regional units located at Kosi-Katarmal,
were instituted in 1986 to recognize the pioneering and innovative contribution made by individuals and institutions
in the field of afforestation/wasteland development every year.
PITAMBER PANT NATIONAL ENVIRONMENT FELLOWSHIP : Pitamber Pant National Environment Fellowship
instituted in 1978 is awarded every year to encourage and recognize excellence in any branch of research related to the
environmental sciences.
B.P. PAL NATIONAL ENVIRONMENT FELLOWSHIP FOR BIODIVERSITY : B.P. Pal National Environment
Fellowship Award for Biodiversity was instituted during 1993 and is awarded annually with a view to further
develop, deepen and strengthen the expertise on biodiversity available in the country.
NATIONAL AWARDS FOR PREVENTION OF POLLUTION AND RAJIV GANDHI ENVIRONMENT AWARD FOR CLEAN TECHNOLOGY : The National Awards for Prevention of Pollution and Rajiv Gandhi
Environment Award for Clean Technology are given each year, in the identified categories of highly polluting
industries which have made a significant and measurable contribution towards development or use of clean
technologies, products or practices that prevent pollution and find innovative solution to environmental problems.
RAJIV GANDHI WILDLIFE CONSERVATION AWARD : The Rajiv Gandhi Wildlife Conservation Award is given
annually for significant contribution in the field of wildlife conservation which has made, or has the potential to make,
a major impact on the protection and conservation of wildlife in the country.
AMRITA DEVI BISHNOI WILDLIFE PROTECTION AWARD : The Amrita Devi Bishnoi Wildlife Protection Award
is given for significant contribution in the field of wildlife protection, which is recognised as having shown exemplary
courage or having done exemplary work for the protection of wildlife.
NATIONAL GREEN TRIBUNAL : The National Green Tribunal (NGT) Act, 2010 was brought into force in
October, 2010. It was established for the effective and expenditious disposal of cases relating to environmental
protection and conservation of forests and other natural resources including enforcement of any legal right relating
to environment and giving relief and compensation for damages to persons and property and for matters connected
therewith or incidental thereto. It is a specialized body equipped with the necessary expertise to handle
environmental disputes involving multi-disciplinary issues. The Tribunal shall not be bound by the procedure laid
down under the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice. The Tribunal’s
dedicated jurisdiction in environmental matters shall provide speedy environmental justice and help reduce the
burden of litigation in the higher courts. Five places of sitting with the Principal Bench at New Delhi and Pune,
Kolkata, Bhopal and Chennai as zonal Benches have been notified. Delhi and Chennai Bench of the Tribunal have
been operationalised. In addition to the Chairperson, 3 judicial and 9 expert members are working in the Tribunal.
OZONE LAYER PROTECTION : Ozone, a tri-atomic molecule of oxygen is formed from oxygen naturally in the
upper levels of the earth’s atmosphere by high-energy Ultraviolet (UV) radiation from the sun. About 90 per cent of
ozone formed in this way lies between 10 and 50 kilometer above the earth’s surface, called the stratosphere. The
stratospheric ozone layer absorbs all the harmful UV-B radiation emanating from the sun. It protects plant and animal
life from UV-B radiation. The UV-B radiation has the potential to cause skin cancer, eye cataract, suppress body’s
immune system, decrease crop yield etc., which led to the adoption of the Vienna Convention for the Protection of the
Ozone Layer in 1985 an Protocol on Substances that Deplete the Ozone Layer in 1987.
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CONSERVATION OF BIO-DIVERSITY: IN SITU AND EX SITU
IN SITU CONSERVATION : The conservation of a species is best done by protecting its habitat along with all the
other species that live in it in nature. This is known as in-situ conservation, which is conserving a species in its own
environment by creating national parks and wildlife sanctuaries. Biodiversity at all levels, as genetic species and as
intact ecosystems, can be best preserved in situ by setting aside an adequate representation of wilderness as protected
areas. These should consist of a network of National Parks and Wildlife Sanctuaries with each distinctive ecosystem
included in the network. Such a network would preserve the total diversity of life of a region.
In the past, national parks and sanctuaries in India were notified to preserve major wildlife species such as tigers, lions,
elephants and deer. The objective of these areas should be expanded to the preservation of relatively intact natural
ecosystems, where biological diversity, from microscope unicellular plants and animals to the giant trees and large
mammals, can all be preserved.
However, species cannot be protected individually as they are all interdependent—the whole ecosystem must be
protected. The biologist’s viewpoint deals with areas that are relatively species-rich, or those where rare, threatened or
endangered species are found, or those with endemic species. As rare endemic species are found only in a small area,
these easily become extinct due to human activity. Such areas must be given an added importance as their biodiversity
is a special feature of the region.
Animals such as elephants require different types of habitat to feed in during different seasons. They utilize open
grasslands after the rains when the young grass shoots are highly nutritious. As the grasses dry, the elephants move
into the forest to feed on foliage from the trees.
Wildlife, sanctuaries and national parks of India: There are 589 protected areas in India, of which 89 are national
parks and 500 are wildlife sanctuaries. They include a variety of ecosystems and habitats. Some have been created in
order to protect highly endangered species of wild plants and animals found nowhere else in the world.
The Great Himalayan National Park is the largest sanctuary in this ecosystem and is one of the last homes of the
beautiful snow leopard. The Dachigam sanctuary is the only place where the rare Hangul or Kashmir stag is found.
There are several sanctuaries in the terai region—the Kaziranga National Park is the most famous and is home to the
rhinoceros apart from elephant, gaur, wild boar, swamp deer and hog deer in large numbers, as well as tigers and
leopards. Its bird life is extremely rich and includes ducks, geese, pelicans and storks. The Manas sanctuary, in
addition to the above terai species, also includes the rare golden langur and the very rare pygmy hog. The florican is
found only in a few undisturbed grasslands in the terai sanctuaries.
Bharatpur is one of the most famous water-bird sanctuaries in the world. Thousands of ducks, geese, herons and other
wading birds can be seen here. This is the only home of the very rare Siberian crane, which migrates to India every
winter. During the last 20 years, the 30 or 40 Siberian cranes have dwindled to only 2 or 3. During 2002-2003, no cranes
were seen and it is possible that this beautiful bird will never again come to India.
In the Thar desert, wildlife is protected in the Desert National Park. Here, large numbers, of blackbuck, nilgai and
chinkara can be seen. The great Indian bustard lives in these arid lands.
The Great and the Little Rann of Kutch have been made into sanctuaries to protect the very rare wild ass, the flamingo,
the star tortoise and the desert fox. In Gujarat, the Gir Sanctuary protects the last population of the majestic Asiatic
lion. This thorn and deciduous forest is also the home of large herds of chital, sambar and nilgai.
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The sanctuaries of the Western ghats and associated hill ranges protect some of the most diverse forest types in the
country. The few examples of highly-threatened species include the Malabar giant squirrel, the flying squirrel and a
variety of hill birds, several species of amphibians, reptiles and insects. These regions are also rich in highly endemic
plant life. Sanctuaries such as Bhimashankar, Koyana, Chandoli preserve this rich flora in Maharashtra;Bandipur,
Bhadra, Dandeli and Nagarhole in Karnataka; Eravikulam, Parambikulam, Periyar and the Silent Valley in Kerala.
In the Nilgiri hills, the forest sanctuaries protect some of the last pockets of the Indian elephant in South India.
Examples include Bandipur, Mudumalai, Wyanad and Bhadra. During the last 10 years, a large number of the great
tusker elephants of his region have been ruthlessly killed for their ivory. Now, very few of these magnificent animals
are left in these jungles.
Two important sanctuaries meant for preservation of coastal ecosystems are the Chilika lake in Orissa and Point
Calimere in Tamil Nadu. The Sunderbans protect the largest mangrove delta in India. The Marine National Park in
Gujarat protects shallow areas in the sea, islands, coral reefs and extensive mudflats.
ORISSA: OLIVE RIDLEY TURTLES
Every year at Gahrimatha, Rushikulya and the mouth of the Devi river on the Orissa coast, hundreds of
thousands of Olive Ridley turtles congregate on the beach, between December and April, for mass nesting—the
arribada. This was the largest nesting site for Olive Ridleys in the world. In 1999, by the end of March it was estimated
that around 200, 000 turtles had nested at the Gahirmatha beach. Marine biologists believe that only one out of every
1000 eggs actually matures into an adult.
There are severe threats to these nesting sites. Shrinking nesting sites, construction of roads and buildings close
to these rookeries, and other infrastructure development projects hamper nesting. Trawler fishing is another large
threat to the turtles. After its ‘discovery’ in 1974, the beach was notified as a sanctuary (the Bhitarkanika sanctuary)
and was closed for hunting. Recognising the threat to turtles from fishing by large trawlers, the Orissa Marine Fisheries
Regulation Act was passed in 1982. This Act prohibits trawling within 10 km of the coastline throughout the state and
makes it mandatory for all trawlers to use Turtle Excluder Devices (TEDs). In 2001, the State Government of Orissa
declared that a five-month period between January and May should constitute a no-fishing season for a distance of 20
km from the coastline.
Apart from these initiatives, ‘Operation Kachhapa’ is being coordinated by the Wildlife protection Society of
India, Delhi and Wildlife Society of Orissa with many local NGOs as partners. The Orissa Forest Department, WII,
Dehra Dun and the Coast Guard are also involved in the project.
EX SITU CONSERVATION : There are situations in which an endangered species is so close to extinction that unless
alternate methods are instituted, the species may be rapidly driven to extinction. This strategy is known as ex situ
conservation, that is, conserving the species outside its natural habitat in a carefully controlled situation such as a
botanical garden for plants, a zoological park for animals or within the care of humans where there is expertise to
multiply the species under artificially managed conditions. Finally, a successful breeding programme ensures that a
species is reintroduced into its original wild habitat. This requires rehabilitation of the degraded habitat and removal
of the other causes such as poaching, disturbances, or other artificial influences that have been the primary cause of
reducing the population of species.
Another form of preserving a plant is by preserving its germplasm in a gene bank so that it can be used if needed in
future. However, this is rather expensive.
When an animal is on the brink of extinction, it must be carefully bred so that in-breeding does not lead to the genetic
composition becoming weak. Breeding from the same stock can lead to poorly-adapted progeny or even an inability to
get enough offspring.
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Modern breeding programmes are undertaken in zoos that provide for all the animal’s needs, including enclosures
that simulate their wild habitats. There may also be a need to assist breeding artificially. Thus, while most zoos are
meant to provide visitors with a visual experience of seeing a wild animal at close quarters and provide the visitors
with information about the species, a modern zoo has to go beyond these functions to include breeding of endangered
species as a conservation measure.
In India, successful ex situ conservation programmes have been carried out for all our three species of crocodiles; this has been highly successful. The most successful example is the Madras Crocodile Trust Bank, which has grown from 10 to 8,035 crocodiles and the crocodiles here lay two clutches of eggs a year, compared to one in the wild! Another recent success has been the breeding of the very rare pygmy hog in the Guwahati zoo.
SOME IMPORTANT FACTS :
• Biological diversity refers to the variation of life forms at three levels—genetic variability within a species, the variety of species within a community and the organisation of species in an ecosystem.
• Biological diversity provides a variety of environmental goods and services. These can be categorized as consumptive and productive use values, socio-cultural values, aesthetic values and option values.
• India is a bio-rich nation, it ranks among the top 15 countries that are exceptionally rich in species diversity, many of which are endemic to the country and found nowhere else in the world.
• Areas that are rich in species diversity are called ‘hotspots’ of diversity. India’s ‘hotspot’ are concentrated in three areas—the Andaman and Nicobar islands, forests of the Northeastern states and forests of the Western ghats.
• Threats to biodiversity include: habitat loss due to rapid urbanization and industrialization, poaching for wildlife for short-term economic gain, and finally conflicts arising from human-wildlife coexistence.
• In situ conservation refers to protecting species in their natural habitat by setting aside an adequate representation of wilderness as Protected Areas (PAs), consisting of a network of national parks and wildlife sanctuaries.
• These PAs must be integrated with each other, by establishing corridors between adjacent areas wherever possible so that wildlife can move between them. Ex situ conservation refers to protecting species away from their natural habitat, in conditions which can be closely controlled and monitored.
NOTE : DIFFERENCE BETWEEN NATIONAL PARKS AND WILD LIFE SANCTUARIES
• The boundaries of national parks are well marked, whereas the boundaries of wildlife sanctuaries are often not well marked. In India the areas under national parks are strictly reserved for the conservation and preservation of wildlife, with no scope for human activities.
• All human activities are completely banned in the area under the national parks, whereas in wildlife sanctuaries, some human activities like timber extraction, forestry and cultivation are allowed, provided they do not have direct adverse impact on the wildlife.
• In most countries, only national or federal government can constitute national parks, but in India, state governments have the power to constitute national parks.
• In fact, national parks can only be constituted or abolished through state legislation, whereas wild sanctuaries are created through an order of a competent authority, who can be the chief conservator of forests or a minister of a state. Thus, it is evident that national parks have greater degree of permanency than a wildlife sanctuary.
• In wildlife sanctuaries private ownership rights can continue as long as wildlife conservation is not adversely affected, but in the national parks there are no private ownership rights.
• Both can be formed out of reserved of protected forests.
Biosphere Reserve
• A Biosphere Reserve is an ecosystem with plants and animals of unusual scientific and natural interest. It is title given by UNESCO to help protect the sites. The plan is to promote management, research and education in ecosystem conservation. This includes the sustainable use of natural resources.
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CHAPTER THIRTEEN| FINANCE
THE Ministry of Finance is responsible for administration of finances of the Government. It is concerned with all
economic and financial matters affecting the country as a whole including mobilisation of resources for development
and other purposes. It regulates expenditure of the Government including transfer of resources to the states. This
Ministry comprises five departments, namely, (i) Economic Affairs, (ii) Expenditure, (iii) Revenue, (iv) Disinvestment
and (v) Financial services.
DEPARTMENT OF ECONOMIC AFFAIRS
ECONOMIC GROWTH : As per the provisional estimates, released by the Central Statistics Office, the growth rate of
Gross-Domestic Product (GDP) at factor cost at constant (2004-05) prices is estimated at 4.7 percent in 2013-14, with
agriculture and allied sectors, industry sector and services sector growing at 4.7 per cent and 6.8 per cent respectively.
INDUSTRY : The Index of Industrial Production (IIP) based industrial growth during 2013-14 was (-)0.1 per cent
compared to 1.1 per cent growth achieved in the previous year. Out of the three broad sectors, while electricity sector
recorded the highest growth during 2013-14, the mining and the manufacturing sectors recorded negative growth
during this period. The electricity sector grew at 6.1 percent as compared to 4.0 per cent achieved during the same
period of the previous year. However, the mining and the manufacturing sectors declined by 0.6 percent and 0.8 per
cent during 2013-14 vis-a-vis (-) 2.3 percent growth recorded during the previous year respectively.
PRICES AND INFLATION : The average headline inflation measured in terms of Wholesale Price Index (WPI),
continued to decline in the financial year 2013-14 from 8.94 per cent in 2011-12 to 7.35 per cent in 2012-13 and further to
5.98 per cent in 2013-14. The decline in inflation was on account of fall in non-food inflation since the food- inflation
continued to show uptrend during this period.
WHAT IS INFLATION ?
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand. There are several variations on inflation:
• Deflation is when the general level of prices is falling. This is the opposite of inflation.
• Hyperinflation is unusually rapid inflation. In extreme cases, this can lead to the breakdown of a nation's monetary system. One of the most notable examples of hyperinflation occurred in Germany in 1923, when prices rose 2,500% in one month!
• Stagflation is the combination of high unemployment and economic stagnation with inflation. This happened in industrialized countries during the 1970s, when a bad economy was combined with OPEC raising oil prices.
In recent years, most developed countries have attempted to sustain an inflation rate of 2-3%. CAUSES OF INFLATION : Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted:
Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other
words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies.
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Cost-Push Inflation - When companies' costs go up, they need to increase prices to maintain theirprofit margins. Increased costs can include things such as wages, taxes, or increased costs of imports. COSTS OF INFLATION : Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), then we can compensate and the cost isn't high. For example, banks can vary their interest rates and workers can negotiate contracts that include automatic wage hikes as the price level goes up. Problems arise when there is unanticipated inflation:
• Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan.
• Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run.
• People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living.
• The entire economy must absorb repricing costs ("menu costs") as price lists, labels, menus and more have to be updated.
• If the inflation rate is greater than that of other countries, domestic products become less competitive.
People like to complain about prices going up, but they often ignore the fact that wages should be rising as well. The question shouldn't be whether inflation is rising, but whether it's rising at a quicker pace than your wages. Finally, inflation is a sign that an economy is growing. In some situations, little inflation (or even deflation) can be just as bad as high inflation. The lack of inflation may be an indication that the economy is weakening. As you can see, it's not so easy to label inflation as either good or bad - it depends on the overall economy as well as your personal situation.
MONETARY TRENDS AND DEVELOPMENTS : The gradual monetary easing started by the Reserve Bank of India
with the dampening of inflationary pressures was halted with the large outflow of capital, particularly in debt segment
and consequent steep depreciation of Rupee. Reversing its easy stance announced in its Annual Monetary Policy
Statement made on May, 3, 2013, the RBI took a series of short term measures after the indication from the USA to
taper the quantitative easing triggered by the capital outflow and exchange rate volatility.
BALANCE OF PAYMENT (BOP) : After remaining at elevated levels in 2011-12 and 2012-13, current account deficit
(CAD) declined significantly in 2013-14 mainly on account of the success of the measures to contain non-essential
imports like gold. During 2013-14, merchandise exports (on BoP basis) increased by 3.9 per cent to US$318.6 billion in
2013-14 as against US$ 306.6 billion in 2012-13. Imports declined by 7.2 per cent to US$ 466.2 billion in 2013-14 as
against US$ 502.2 billion in 2012-13. The recovery in exports and moderation in imports led to a sharp improvement in
the trade deficit to US$ 147.6 billion (7.9 per cent of GDP) in 2013-14 from US$ 195.7 billion (10.5 per cent of GDP) in
2012-13. Net invisible receipts increased 7.2 per cent to US$ 115.2 billion in 2013-14 from US$ 107.5 billion in 2012-13.
Contraction in the trade deficit, coupled with a rise in net invisibles receipts, resulted in a reduction of the CAD to US$
32.4 billion (1.7 per cent of GDP) in 2013-14 from US$ 88.2 billion (4.7 per cent of GDP) in 2012-13. Net capital inflows,
however, declined to USS 47.9 billion (2.6 per cent of GDP) in 2013-14 from US$ 92.0 billion (4.9 per cent of GDP) in
corresponding period of 2012-13 owing to lower net portfolio inflows and net repayment of short-term debt. On BoP
basis, foreign exchange reserves increased by US$ 15.5 billion during 2013- 14 as compared to increase of US$ 3.8
billion in 2012-13.
BALANCE OF PAYMENTS
The Balance of Payments (BOP) is the method countries use to monitor all international monetary transactions at a
specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in
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and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country
has a deficit or a surplus and from which part of the economy the discrepancies are stemming.
EXCHANGE RATE OF RUPEE : During fiscal 2013-14, the monthly average exchange rate of rupee (RBI’s Reference
Rate) was in the range of 54.38-63.75 per US dollar. The daily exchange rate of the rupee breached the level of 68 rupee
per US dollar in August, 2013 68.36 rupee per US dollar on August 28, 2013. However it recovered to 60.10 per US
dollar on March 28, 2014 reflecting the impact of the steps taken by the Government and the RBI to moderate the
current account deficit and boost capital flows, and greater clarity on US Federal Reserve taper. The rupee depreciated
by 10.8 per cent to Rs. 61.01 per US dollar in March 2014 from Rs. 54.40 per US dollar in March 2013.
EXTERNAL DEBT : India’s external debt stock stood at US$ 440.6 billion at end- March, 2014 recording an increase of
US$ 31.2 billion over the level at end-March, 2013. The maturity profile of India’s external debt indicates dominance of
long-term borrowings. The rise in external debt during the period was due to long-term debt particularly NRI deposits.
A sharp increase in NRI deposits reflected the impact of fresh Foreign Currency Non-Resident (Banks) FCNR (B)
deposits mobilised under the swap scheme during September-November, 2013.
NATIONAL RURAL LIVELIHOODS MISSION (NRLM): Swarnajyanti Gram Swarozgar Yojana (SGSY) has been
restructured and implemented as the National Rural Livelihoods Mission (NRLM), since FY 2011-12. 24 States have
transited to NRLM after establishing dedicated Mission architec systems. The remaining four States are expected to
transit to NRLM during the current financial year. The total budget provision for NRLM is Rs. 4000 crore for 2013-14
while the total release as on 30th September, 2013 is Rs. 858.41 crore.
SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY) : The SJSRY launched on 1st December, 1997, aims at
providing gainful employment to the urban unemployed and underemployed, by encouraging them to set up self-
employment ventures or creating wage employment opportunities. The annual budgetary provision for the SJSRY for
the year 2013-14 is Rs. 950.0 crore and Rs. 380.57 crore has been released up to 1st November, 2013. During 2013-14, as
on 31st October, 2013, a total of Rs. 4,42,850 people had benefited from this scheme.
NATIONAL HEALTH MISSION (NHM): The National Urban Health Mission (NUHM) was launched in 2013 as a
sub-mission of National Health Mission (NHM), with National Rural Health Mission (NRHM) being the other
Submission. Allocation of 20,000 crore has been made for National Health /Mission for rural and urban during 2013-
14.
MID-DAY MEAL (MDM): Some important programmes in the education sector viz, the Sarva Shiksha Abhiyan (SSA)
supported by the Mid-Day Meal Scheme (MDMS), intend to ensure provision of elementary education to all the
children in the 6-14 age group.
RASHTRIYA SWASTHYA BIMA YOJANA (RSBY): Under the Yojana, more than 3.71 BPL families are having the
RSBY active smart cards by April 2014. Apart from the BPL families, the coverage of RSBY has been extended to
various other categories of unorganized workers and it is the endeavour of the Government to extend RSBY to all
unorganized workers in a phased manner. The occupational groups such as sanitation workers, rickshaw pullers, rag
pickers, mine workers and auto/taxi drivers have been covered in June, 2013.
NATIONAL SMALL SAVINGS FUND : In order to account for all the monetary transactions under small savings
schemes of the Central Government under one umbrella, National Small Savings Fund’ (NSSF) was set up in the Public
Account of India w.e.f. 1st. April, 1999. The net accretions under the small savings schemes are invested in the special
securities of various States/Union Territories (with legislature)/Central Governments. The minimum obligation of
States to borrow from the National Small Savings Fund (NSSF) was brought down from 100 per cent to 50 percent of
net collections in 2012.
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EXPANSION OF SCOPE OF RAJIV GANDHI EQUITY SAVINGS SCHEME (RGESS) : Pursuing the Union Budget
announcement of 2012-13, Government on 23rd November 2012 notified a new tax saving scheme called ‘Rajiv Gandhi
Equity Savings Scheme’ (RGESS), exclusively for the first time securities market. The Scheme was launched in
February, 2013 and is implemented through depositories. RGESS has been further liberalized in the Union Budget 20
13-14 to enable the first time investor to invest in listed mutual funds and equity for three successive years, instead of
the present provision of one year. The income limit applicable for RGESS beneficiaries has been raised from Rs. 10 lakh
to Rs. 12 lakh.
WORLD BANK : The World Bank is among the world’s leading development institutions with a mission to fight
poverty and improve living standards developing world by promoting sustainable development through loans,
guarantees, risk management products, and (non-ending) analytic and advisory services. The World Bank is one of the
United Nations’ specialized agencies. The World Bank concentrates its efforts on reaching the Millennium
Development Goals aimed at sustainable poverty reduction. India is a member of four institutions of the World Bank
Group viz., International Bank for Reconstruction and Development (IBRD), International Development Association
(IDA); International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MICA). India has been
accessing funds from the World Bank (mainly through IBRD and IDA) for various developmental projects.
SEVENTH CENTRAL PAY COMMISSION : The Seventh Central Pay Commission has been set up in February, 2014.
This Resolution sets out the composition and Terms of Reference of the Commission and also envisages that it will
submit recommendations within 18 months from the date of constitution of the Commission.
The Seventh Central Pay Commission comprises the following:
1. Chairman - Justice Shri Ashok Kumar Mathur
2. Member - Shri Vivek Rae
3. Member-Dr. Rathin Roy
4. Secretary-Smt. Meena Agarwal.
PROCUREMENT POLICY : A Public Procurement Cell (PPC) was set up in this Department in June, 2011 to take
follow up action on the Report of the Committee on Public Procurement (CoPP) and drafting of the Public
Procurement Bill and other related matters such as drafting of rules and setting up of a Central Public Procurement
Portal. The Cell was gradually strengthened and a Division called Procurement Policy Division (PPD) was created
under the overall supervision of OSD (PPD) with one Director, one Under Secretary, one Assistant Director and one
Assistant.
NATIONAL E-GOVERNANCE PLAN (NEGP) : The Government approved the National e-Governance Plan (NeGP),
comprising 27 Mission Mode Projects (MMPs) and 8 components, May 18, 2006. The Scheme envisions making all
Government services accessible to the common man in his locality through common service delivery outlets and
ensuring efficiency, transparency and reliability of such services at affordable cost. At present there are four
components operational under the Scheme :
(i) Common Service Centre (CSC)
(ii) State Wide Area Networks (SWAN)
(iii) State Data Centres (SDC)
(iv) Capacity Building
CONTROLLER GENERAL OF ACCOUNTS (CGA) : The Controller General of Accounts (CGA) under the
Department of Expenditure, is the principal accounts adviser to the Government of India and is responsible for
establishing and maintaining a technically sound management accounting system. Functions entrusted to the
Controller General of Accounts are as under:- to formulate the policy relating to the general principles, form and
procedure of accounting for the entire Central and State Governments; to formulate the policy relating to the general
principles, form and procedure of accounting for the entire Central and State Governments; to coordinate and oversee
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the payment, receipts and accounting matters in the Central Civil LMS/Departments through the set up of the Civil
Accounts Organization.
CENTRAL PENSION ACCOUNTING OFFICE, NEW DELHI : The Central Pension Accounting Office (CPAO) was
established w.e.f. 1st January, 1990 for payment and accounting of Central (Civil) pensioners and pension to Freedom
Fighters etc. CPAO is an attached office under the organization of controller General of Accounts. It has been entrusted
with the responsibility of administering the scheme of payment of pension to Central, Government (Civil) Pensioners
through authorized Banks. Its core functions are: issue of Special Seal Authorities (SSAs) to Authorised Banks;
preparation of Budget for the Pension Grant and accounting thereof; audit of pension disbursing Banks; and as an
interim arrangement, payment of provisional pension to the pensioners/family pensioners covered under New
Pension Scheme as per the orders of Ministry of Finance.
DIRECT BENEFIT TRANSFER (DBT) : To bring a paradigm shift in the delivery of services to the citizens,
particularly common man and the under-privileged section of society of the country, the Government took a decision
to start the Direct benefit Transfer (DBT) Programme. This Programme envisages a switch from the present electronic
transfer of benefits to bank accounts of the beneficiary to transfer of benefits directly to Aadhar seeded bank accounts
of the beneficiaries.
NATIONAL INSTITUTE OF FINANCIAL MANAGEMENT : The National Institute of Financial Management
(NIFM) was set up in 1993 as a registered society after the Union Cabinet approved the proposal made by Ministry of
Finance, Government of India. It was envisaged a training institution for officers recruited by the Union Public Service
Commission (UPSC) through the annual Civil Services Examination and allocated to the various services responsible
for managing senior and top management posts dealing with accounts and finance in the Government of India. The
Institute pursues an aim to develop as a centre of excellence in the areas of Financial Management and related
disciplines, ‘not only in India but also in Asia.
CENTRAL SALES TAX (CST) : The entry 92A of List-I (Union List) empowers the Central Government to impose tax
on inter-State sale of goods. Further, Article 269(3) empowers the Parliament to formulate principles for determining
when a sale or purchase of goods takes place in the course of inter-State trade of commerce. Similar Constitution
empowers the Parliament to formulate principles for determining when the sale or purchase of goods takes place
outside a State or in the course of imports into or exports from India. Besides, Article 286 authorizes the Parliament to
place restrictions on the levy on sale or purchase of goods, declared by the Parliament by law to be goods of special
importance in the inter-State trade or commerce.
GOODS AND SERVICES TAX (GST) : The proposal to introduce a national level Goods and Services Tax (GST) by
April 1, 2010 was first mooted by the Finance Minister in the Budget Speech for the Financial Year 2006-07. Some of the
main recommendations of the Standing Committee on Finance on the subject include (a) inclusion of petrol and
petroleum products and alcoholic liquor within definition of GST, (b) dispute resolution among States and between
Union and the States to be done by Goods and Services Tax Council, (c) abolition of Entry Tax, (d) establishment of a
GST compensation Fund through a Constitutional Amendment, (e) distribution of the remaining proceeds of GST
amongst States and Union at the end of financial year, (f) viability of Modified Bank Model for settlement of proceeds
arising out of inter-State Trade and (g) establishment of GST monitoring cell etc.
MAJOR CHANGES MADE BY FINANCE ACT, 2013
RATES OF TAXATION : Basic exemption limit in the case of individual, Hindu undivided family (HUF), association
of persons, body of individuals and artificial juridical person has been retained at Rs. 2 lakhs. The rates for deduction
of income-tax’ at the financial year 2013-14 from certain incomes other than ‘salaries’ have been specified in Part II of
the First Schedule to the Act. The rates for deduction of income-tax at source during the financial year 2013-14 will
continiue same as those specified in Part II of the First Schedule to the Finance Act, 2012 except that in case of certain
payments made to a non-resident other than a company or a foreign company, in the nature of income by fees for
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INDIA YEAR BOOK-2015| Part - I 78
technical services, the rate shall be twenty-five percent. Also, the newly inserted section, 194LD provides for reduced
rate of 5 per cent of withholding tax as against the normal rate of 20 per cent on interest payable in respect of a rupee
denominated bond of an Indian company or a Government security, if the payment is made to a Foreign Institutional
Investor (FII) or a Qualified Foreign Investor (QFI).
WOMEN’S BANK - BHARATIYA MAHILA BANK LIMITED
With a view to promote gender equality and economic empowerment of women Government took a decision to set-up
India’s first Women’s Bank, to address the gender related aspects of financial access to all sections of women,
empowerment of women, and financial inclusion. To achieve economic empowerment, women need equal access to
economic institutions and control of assets. Since both the components are interrelated, control over assets is essential
to access finance and vice versa. Hence the first step to empowerment is to provide equal access to financial services to
women while addressing the problems of lack of collateral. This would help promote both asset ownership by women
(control over resources) and entrepreneurship which would increase employment opportunities for them. Government
has confused an initial capital of Rs. 1,000 crore in the Bharatiya Mahila Bank Limited. The Bank has been incorporated
and RBI has already issued a banking license to the Bank. The Bank has become functional after its inauguration on
19th November, 2013.
KISAN CREDIT CARD : The Kisan Credit Card (KCC) Scheme was introduced in 1998-99, as a innovative credit
delivery system aiming at adequate and timely credit support from the banking system to the farmers for their
cultivation needs including purchase of 3 inputs in a flexible, convenient and cost effective manner. The Scheme is
being implemented by all the District Central Cooperative Banks, Regional Rural Banks (RRBs) and Public Sector
Commercial Banks throughout the country. KCC is one of the most effective tools for delivering agriculture credit.
Banks have been advised to issue Kisan Credit Cards (KCC) to all eligible farmers. A new scheme for KCC has been
circulated by RBI and NABARD which provides for KCC as an ATM card which can be used at ATM/Point of sale
(POS) terminals. As on 31st March, 2014, 111 lakh KCCs issued by Public Sector Banks were eligible for conversion into
ATM cards, out of which 64.61 lath eligible KCCs have since been converted into ATM enabled KCC cards.
RURAL INFRASTRUCTURE DEVELOPMENT FUND (RIDF) : The Government of India established a fund to be
operationalised by NABARD in the Union Budget 1995-96 called the Rural Infrastructure Development Fund (RIDF),
which was set up within NABARD by way of deposits, from Scheduled Commercial Banks operating in the country
from the shortfall in their agricultural/priority sector/weaker sections lending.
EXPORT IMPORT BANK OF INDIA (EXIM BANK) : Exim Bank offers a comprehensive range of lending and
service/advisory programmes, aimed at aiding the globalisation efforts of Indian companies. This enables the Bank to
promote inclusion of a large cross section of Indian exporters, in the opportunities being thrown up by globalization.
During Financial year 2013-14, the Bank extended an aggregate of 24 Lines of Credit (LOCs) guaranteed by the
Government of India, to 18 countries, with credits amounting to US$ 1.77 billion. As on date, 173 LOCs to 62 countries,
with credits amounting to US$10.03 billion are guaranteed by the Government of India.
RURAL HOUSING FUND : Rural Housing Fund was set up in 2008-09 to enable primary lending institutions to
access funds for extending housing finance to targeted groups in rural areas at competitive rates.
SWAVALAMBAN SCHEME : The Government of India is very conscious of the need to fulfil the old age income
security needs of the working poor and is focused on encouraging and enabling them to join the NPS. To encourage
workers in the unorgnised sector to save voluntarily for their old age, an initiative called Swavalamban Scheme was
launched on 29th September, 2010. It is a co-contributory pension scheme whereby the Central Government would
contribute a sum of 1000 per annum.
The development of the insurance sector is necessary to support its continued economic transformation.
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The Public Sector Insurance Companies operating in the sector are as follows:
1. Life Insurance Corporation
2. National Insurance Company Limited
3. Oriental Insurance Company Limited
4. United India Insurance Company Limited
5. New India Assurance Company Limited
6. General Insurance Corporation of India Limited
7. Agriculture Insurance Company of India Limited
LIFE INSURANCE CORPORATION OF INDIA (LIC) : UC of India was incorporated on 1st September, 1956 by
amalgamating 243 Companies by an Act called Insurance Act, 1956. LIC is governed by the Insurance Act, 1938. LIC
Act, 1956, LIC Regulations, 1956 and Insurance regulatory and Development Authority Act, 1999.
SOCIAL SECURITY SCHEME —AAM AADMI BIMA YOJANA (AABY)
For the benefit of the weaker sections of the society, Government of India has floated a highly subsidized insurance
scheme, Aam Aadmi Bima Yojana (AABY) which is administered through Life Insurance Corporation of India. Under
this Social Security Scheme Below Poverty Line (BPL) and marginally above poverty line citizens are covered under 48
identified occupations. The Scheme provides death cover of 30,000/- in case of natural death. In case of death or total
disability (including loss of 2 eyes/2limbs) due to accident, a sum of Rs. 37,500/- is payable to the
nominee/beneficiary. All these benefits are paid for a nominal ‘premium of Rs. 200.00 per member per annum, out of
which Rs. 100.00 is borne by Central Government through Social Security Fund maintained through LIC of India, and
the balance premium of 100.00 is borne by the member and/or Nodal Agency and/or Central/State Government
Department which acts as the Nodal Agency. In addition, there is an add-on benefit of Scholarship at the rate of Rs.
1200/- per annum per child for two children per family of the insured members studying from 9th to 12th standard
(including ITI courses).
DEPARTMENT OF DISINVESTMENT : The Statement of Industrial Policy of July 24, 1991 laid down the foundation
for disinvestment, of Central Public Sector Enterprises (CPSEs) in India. Accordingly, disinvestment started in the year
1991-92 with the sale of minority shareholding of CPSEs to selected financial institutions like LIC, GIC and UTI. Later,
in April 1993, Rangarajan Committee recommended that the percentage equity to be disinvested should generally be
under 49 percent for industries reserved for public sector.
CHAPTER-14 | CORPORATE AFFAIRS
INDIA YEAR BOOK-2015| Part - I 80
CHAPTER FOURTEEN| CORPORATE AFFAIRS
THE corporate sector has played a significant role in the economic development of the country. There were about
29,357 registered companies at work in 1957, initial year of 2nd Five Year Plan and this number has increased to
800761 registered companies at work in March, 2013. This growth and development of corporate sector was
enabled by various policy reforms introduced in the country from time to time.
COMPANIES ACT, 2013 : The comprehensive revision of the existing Companies Act, 1956, keeping in view the
changes that have taken place in the national and international economic environment, was due for quite some
time. The new Act seeks to bring corporate governance and regulation practices in India at par with the best
global practices. The corporate sector has been given more flexibility in regulating their affairs, subject to full
disclosure and accountability of their actions, with minimum Government approvals. The Act provides more
opportunities for new entrepreneurs and enables wide application of Information Technology in the conduct of
affairs by corporates. The other salient features of this important piece of legislation include provisions with
regard to more accountability of audit; Corporate Social Responsibility, stricter action in case of fraud related
offences and production of interests of investors.
India`s new Companies Act 2013 (Companies Act) has introduced several new provisions which change the face
of Indian corporate business" Companies Act 2013 (Companies Act) has introduced several new provisions
which change the face of Indian corporate business. One of such new provisions is Corporate Social
Responsibility (CSR). The concept of CSR rests on the ideology of give and take. Companies take resources in the
form of raw materials, human resources etc from the society. By performing the task of CSR activities, the
companies are giving something back to the society.
Ministry of Corporate Affairs has recently notified Section 135 and Schedule VII of the Companies Act as well as
the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 (CRS Rules) which has
come into effect from 1 April 2014.
Applicability: Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a
Company i.e. (a) net worth of the company to be Rs 500 crore or more; (b) turnover of the company to be Rs 1000
crore or more; (c) net profit of the company to be Rs 5 crore or more. Further as per the CSR Rules, the provisions
of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign
company in India.
CSR Committee and Policy: Every qualifying company requires spending of at least 2% of its average net profit for
the immediately preceding 3 financial years on CSR activities. Further, the qualifying company will be required
to constitute a committee (CSR Committee) of the Board of Directors (Board) consisting of 3 or more directors.
The CSR Committee shall formulate and recommend to the Board, a policy which shall indicate the activities to
be undertaken (CSR Policy); recommend the amount of expenditure to be incurred on the activities referred and
monitor the CSR Policy of the company. The Board shall take into account the recommendations made by the
CSR Committee and approve the CSR Policy of the company.
Definition of the term CSR: The term CSR has been defined under the CSR Rules which includes but is not limited
to:
• Projects or programs relating to activities specified in the Schedule; or
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INDIA YEAR BOOK-2015| Part - I 81
• Projects or programs relating to activities undertaken by the Board in pursuance of recommendations of the
CSR Committee as per the declared CSR policy subject to the condition that such policy covers subjects
enumerated in the Schedule.
INDIAN INSTITUTE OF CORPORATE AFFAIRS (IICA) : The Indian Institute of Corporate Affairs (IICA)
was registered as a society on 12th September, 2008 under the Societies Registration Act, 1860. It is an
autonomous institute under the aegis of the Ministry of Corporate Affairs. The IICA was established as a
think tank, action research service capacity-building institute to serve the Ministry, corporate entities and all
other stakeholders in a one-stop-shop mode, providing a platform for value-adding partnerships between
government and these stakeholders. The Ministry is committed to delivering opportunities for research,
education and advocacy while simultaneously creating a repository of data and knowledge for policy makers,
regulators as well as all other stakeholders related to the domain of corporate affairs. Set up as the premier
organization for cutting leadership in corporate regulation, governance and running sustainable businesses, the
IICA also aims to build capacity through a network of schools and centres.
INDIAN CORPORATE LAW SERVICE (ICLS) : Ministry of Corporate Affairs is the Cadre Controlling Authority Corporate Law service (ICLS). The erstwhile Indian Company Law Service was rechristened in November, 2008 as the Indian Corporate Law Service. The ICLS cadre is intended to provide human resources in corporate law making, to enforce corporate law efficiently including incorporation, regulation, investor protection and to implement corporate governance in the country. The ICLS is also envisaged to be an important watchdog in the working of corporate sector. MCA21 E-GOVERNANCE PROJECT : MCA launched its pioneering e-Governance initiative MCA2I in January 2007. The initiative has been successful in achieving its aim of providing speed and certainty in the delivery of MCA services to its stakeholders. ‘MCA21 adopted a service oriented approach in the design and delivery of government services, whereby stakeholders have easy and secure access to MCA services, through the infrastructure set up for the purpose, at any time and from any place and in a manner that best suits them. The system has brought a fine balance between stakeholder facilitation and control, through a blend of well-defined goals and performance metrics.
COMPETITION APPELLATE TRIBUNAL : Responding to the current trend of globalization and liberalization
of the economy which led to enhancing the competition not only from within the country but also outside the
country, it was felt that there is need to shift our focus from curbing monopolies to promoting competition. To
cope with the current economic developments at the international level and to prevent use of unfair and
restrictive trade practices in the new era of competition, the government decided to enact a new law for
promoting and sustaining competition in the Indian market.
The Competition Act, 2002, came into force from January 2003. The Competition Act, 2002, as amended, provides
for setting up of the Competition Commission of India (CCI), comprising a Chairperson and minimum of two
and maximum of six members. In addition, it also provides for establishment of the Competition Appellate
Tribunal comprising a Chairperson and two members to hear and dispose off appeals against the orders of the
Competition Commission of India and also to adjudicate on the claims of compensation that may arise from the
findings of that Commission. The Competition Appellate Tribunal was set up in 2009.
Competition Appellate Tribunal COMPAT is vested with following powers:
• To hear and dispose off appeals filed against any direction issued or decision made or order passed by
the Competition Commission of India established under the Competition Act, 2002.
• To adjudicate on claim for compensation that may arise from the findings of the Competition
Commission of India or the orders of the Appellate Tribunal in an appeal against any findings of the
Commission and pass orders for the recovery of compensation under that Act.
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INDIA YEAR BOOK-2015| Part - I 82
CHAPTER FIFTEEN| FOOD AND CIVIL SUPPLIES
THE Department of Food and Public Distribution is responsible for the management of the food economy of the
nation. The vision of the Department is to ensure food security for citizens of the country. Towards this end, the
Department has adopted the following mission :
• Ensuring food security for citizens of the country
• Management of Public Distribution System (PDS) operation in the country through efficient procurement at
Minimum Support Price (MSP), storage and distribution of food grains (cereals)
• Ensuring availability of food grains, sugar and edible oils through appropriate policy instruments; including
maintenance of buffer stocks of food grains.
• Making food grains accessible at reasonable prices, especially to the weaker and vulnerable sections of society
NATIONAL FOOD SECURITY ACT
The Government notified the National Food Security Act, (NFSA) 2013 in September, 2013, with the objective to
provide for food and nutritional security in human life cycle, by ensuring access to adequate quantity of quality food at
affordable prices to live a life with dignity. The Act provides for coverage of upto 75% of the rural population and upto
50% of the urban population for receiving subsidized food grains under Targeted Public Distribution System (TPDS),
thus covering about two-thirds of the population.
OTHER WELFARE SCHEMES (OWS)
MID-DAY MEAL SCHEME : The Mid-Day Meal Scheme was launched on 15th August, 1995 by the Ministry of
Human Resource Development with a view to enhance enrolment, retention, attendance and simultaneously
improving nutritional levels among students in primary schools, in the country. By the year 1997-98, the Scheme was
introduced in all the blocks of the country. The Scheme presently covers students of Class 1-VIII of Government and
Government-aided schools, Education Guarantee Scheme/Alternative and Innovative Education Centres
(EGS/AIE).
The Department of Food and Public Distribution makes allocation of annual requirement of food grains under the
Scheme to the Department of School Education & Literacy, Ministry of Human Resource Development. Further
allocation of food grains to States/UTs is made by that Department. Food Corporation of India (FCI) releases food
grains to States/UTs at BPL rates as per allocation made by Department of School Education and Literacy.
WHEAT BASED NUTRITION PROGRAMME (WBNP) : This scheme is implemented by the Ministry of Women
& Child Development. The food grains allotted under this Scheme are utilized by the States/UTs under the Integrated
Child Development Scheme (ICDS) for providing nutritious/ energy food to children below 6 years of age and
expectant/lactating women.
ANNAPURNA SCHEME : The Ministry of Rural Development launched the scheme in 2000-01. Indigent senior
citizens of 65 years of age or above who are not getting pension under the National Old Age Pension Scheme
(NOAPS) are provided 10 kg of food grains per person per month free of cost under the scheme. From 2002-03, it has
been transferred to State Plan along with the National Social Assistance Programme comprising the National Old Age
Pension Scheme and the National Family Benefit Scheme. The implementation of the Scheme at the State level rests
with respective States / UTs.
EMERGENCY FEEDING PROGRAMME (EFP) : Emerging Feeding Programme, is a food based intervention in the
KBK districts of State of Odisha targeted towards old, infirm and destitute persons belonging to BPL households to
provide them food security in their & distress conditions. This programme was introduced in 1995-96 covering initial 5
CHAPTER-15 | FOOD AND CIVIL SUPPLIES
INDIA YEAR BOOK-2015| Part - I 83
KBK Districts of Odisha with 45,141 beneficiaries. The Scheme is now being implemented by Government of Odisha in