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The Centre accepted the recommendation of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) to increase the interest rate of deposits in Provident Fund (PF) to 8.15%. The new rate will be applicable for last financial year.
The CBT had recommended an increase to 8.15% from 8.10% interest to the deposits on March 28, 2023. The Labour Ministry had forwarded the CBT’s recommendation for the Union Finance Ministry’s approval.
The EPFO, through an official order, has instructed its field offices to credit the interest into the accounts of members.
In the last financial year, trade unions had complained of delay in crediting the interest into the accounts of employees. The EPFO had cited technical reasons for the delay.
The unions had also complained that the rate of 8.10% was the lowest in recent past and had demanded an increase. In 2020-21, the rate was 8.5%.
Israel’s controversial judicial reform Bill gets Parliament nod(Page no. 1)
(GS paper 2, International Relation)
Israel’s hard-right government pushed through Parliament a key clause of its controversial judicial reform package despite months of mass protests and concerns voiced by foreign allies.
Prime Minister Benjamin Netanyahu and his coalition allies approved the Bill in a Knesset vote boycotted by Opposition lawmakers.
Critics charge the judicial revamp will undermine Israel’s liberal democracy by removing checks and balances on the executive, while the government argues it needs to curb judicial overreach.
The Bill, passed with 64 votes in the 120-seat chamber, aims to limit the powers of the Supreme Court in striking down government decisions which the judges deem “unreasonable”.
The reform package has triggered one of the biggest protest movements in Israel’s history since it was unveiled by the government in January.
The Bill was passed hours after Mr. Netanyahu, 73, returned to the Knesset — only a day after undergoing a surgery to have a pacemaker fitted — as police outside the legislature used water cannon and mounted officers were deployed against protesters.
President Isaac Herzog, who had tried but failed to broker a compromise after half a year of mass street protests, earlier warned that Israel faced a “national emergency”.
States
Social security for gig workers in Rajasthan(Page no. 4)
(GS paper 3, Economy)
The Rajasthan Assembly on Monday passed a Bill extending social security to gig workers and creating a regulatory framework for aggregators along with the setting up of a welfare board for the unorganised segment not covered under existing labour laws.
After becoming an Act, this will be the first legislation in the country outlining welfare measures for platform-based workers.
The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023, was passed in the House with a voice vote without any debate amid noisy scenes.
There was a rumpus as sacked Minister RajendraGudha confronted Parliamentary Affairs Minister Shanti Dhariwal and other Congress MLAs. The Bill was taken up for consideration after an adjournment during Zero Hour.
Through the new legislation, the Congress government in the State intends to establish a welfare board and set up a welfare fund for gig workers, register these workers and aggregators and facilitate the guarantee of social security to them.
The Bill has also made provisions for charging and collection of gig worker welfare fee from the aggregators.
Chief Minister Ashok Gehlot had made an announcement on the Bill during his budget speech earlier this year.
Amid loud protests by Opposition BJP MLAs following Mr. Gudha’s eviction from the House, the Speaker and the ruling party rushed through four legislations, including the Bill for gig workers.
Minister of State for Labour SukhramBishnoi first proposed a debate on the Bill in the House and later its passage, when the debate could not take place.
The three other Bills passed amid the din included one on the establishment of Gandhi Vatika Trust for promotion of Gandhian thought and activities and two on the creation of Development Authorities for Udaipur and Kota cities.
In addition to making provisions for welfare measures, the Bill seeks to create an effective dispute resolution mechanism for conflicts between gig workers and platforms.
States
ISRO to launch PSLV-C56 carrying Singapore’s new imaging satellite(Page no. 5)
(GS paper 3, Science and Technology)
The Indian Space Research Organisation announced that the PSLV-C56 carrying Singapore’s DS-SAR satellite will be launched on July 30 from Sriharikota.
The PSLV-C56 carrying DS-SAR satellite will be launched along with six other satellites. According to ISRO, the PSLV-C56 is configured in its core-alone mode, similar to that of C55.
It would launch DS-SAR, a 360 kg satellite into a near-equatorial orbit at 5 degrees inclination and 535 km altitude.
It added that the satellite is developed under a partnership between DSTA (representing the Government of Singapore) and ST Engineering.
It will be used to support the satellite imagery requirements of various agencies within the Government of Singapore.
DS-SAR carries a Synthetic Aperture Radar payload developed by Israel Aerospace Industries. This allows the DS-SAR to provide for all-weather day and night coverage and is capable of imaging at 1m resolution at full polarimetry.
The other satellites are VELOX-AM, a 23 kg technology demonstration microsatellite; Atmospheric Coupling and Dynamics Explorer (ARCADE), an experimental satellite; SCOOB-II, a 3U nanosatellite flying a technology demonstrator payload; NuLIoN by NuSpace, an advanced 3U nanosatellite enabling seamless IoT connectivity in both urban and remote locations; Galassia-2, a 3U nanosatellite, which will be orbiting at low earth orbit; and the ORB-12 STRIDER, which is a satellite developed under an International collaboration.
Editorial
An avoidable controversy over sample surveys(Page no. 7)
(GS paper 3, Economy)
There was controversy recently over how sound data collection procedures in India are, especially when it comes to some of the important national level surveys.
The writer proceeded to suggest ‘a major sampling overhaul’ so that the survey estimates reflect the ground reality in the country.
In support of her argument, the writer said that from 2011-12 till 2019-21, out of 11 surveys listed in her article, ‘every survey (except NFHS-4 of 2015-16) underestimates the proportion of the urban population or overestimates the rural population significantly’.
Consequently, the estimates from these surveys ‘systematically underestimate the improvements across the country’.
It is important to re-emphasise the point that all the surveys listed do adopt scientific sample designs. This is widely acknowledged, even at the international level.
However, there can be no denying the fact that there is always a scope for improvement of the sample designs. In fact, the sample designs of the NSS have undergone periodic revisions after due deliberations in the meetings of the NSS round-specific working groups, with final approval by the National Statistical Commission (and by the governing council of the National Sample Survey Office earlier).
These committees and bodies have been chaired by or have had as their members some of the most eminent economists, statisticians and demographers that India has ever produced.
On the issue of an underestimation of the proportion of the urban population or an overestimation of the proportion of rural population in surveys (as pointed out by the writer in her article on July 7), it is important to remember that the sample designs of the NSS or the PLFS are not aimed at estimating the number of households or population.
Instead, they are meant primarily to estimate the major socio-economic indicators that relate to the subjects of interest.
The estimates of the number of households or population are auxiliary information. Data users appropriately adjust the survey-based estimates separately for the rural and urban areas by using projected population figures based on the Census.
ASEAN, a persistence with dialogue, on a trodden path(Page no. 7)
(GS paper 2, International Organisation)
If Southeast Asia is the heart of the Indo-Pacific, the 56th Foreign Ministers Meeting (FMM) of the Association of Southeast Asian Nations (ASEAN), the post-ministerial conferences and other related regional meetings, held in Jakarta, Indonesia in mid-July, 2023, are the best barometer to check on the region’s latest dynamics.
An elaborate institutional architecture created by ASEAN has become an inclusive platform that draws nations from near and far, as also all major players (the United States, China, India, Japan and Russia) engaged in shaping the strategic contestation in a vast region stretching from east Africa to the South Pacific.
An in-depth study of various outcome documents, particularly the joint communiqué of the FMM, is indicative of ASEAN’s brave attempts to navigate through transformative changes in the present decade: the impact of the COVID-19 pandemic, economic slowdown, the Ukraine war, climate change, and, above all, the Cold War-type confrontation between the United States and China.
As the current chair, Indonesia has portrayed ASEAN as “the Epicentrum of Growth”. It is a well-chiselled vision with three inter-related dimensions: creating a political community that ensures regional peace and a just, democratic and harmonious environment; an economic community focused on achieving a well-integrated and connected regional economy within the global economic system; and a socio-cultural community to enhance the quality of life of ASEAN’s citizens as well as sustainable development of the region.
Addressing fellow Foreign Ministers on July 11, RetnoMarsudi, the Minister for Foreign Affairs of Indonesia and chair, argued that ASEAN’s ability to manage regional and global dynamics depended on two critical ingredients that promote its unity and centrality.
First, it should maintain its credibility by adhering to the ASEAN Charter, and second, it should stay in the driver’s seat while navigating regional dynamics.
Laudable as these goals are, they are becoming less achievable. ASEAN’s internal differences on issues such as Myanmar keep surfacing in public.
Its desire to lead the region and shape its agenda stands jeopardised by the strained relationship between the U.S. and China.
Opinion
A big step in reducing the risk of disasters (page no. 7)
(GS paper 3, Disaster Management)
Disasters around the world are claiming more and more lives. The consequences of climate change are already on our doorstep.
Ten days ago, three continents were gripped by heat waves. Massive forest fires have ravaged parts of Greece and Canada.
Two weeks ago, the river Yamuna breached the highest flood level, recorded 45 years ago, and inundated parts of Delhi.
The cost of these disasters is yet to be determined. However, it is clear that the world needs to do more to prevent the risk of losses from all disasters, whether they are weather-related, earthquakes, or biological like COVID-19. For too long, countries have spent billions responding to disasters rather than paying a little upfront to prevent or reduce their impact.
We are at the midpoint of the Sendai Framework for Disaster Risk Reduction 2015-2030, which is the global road map for reducing disaster risks and losses.
While progress has been made, we are not where we need to be. However, with a renewed sense of urgency and a people-centred approach, we can significantly reduce disaster losses by 2030.
One good news is that countries are finally coming around to the value of disaster risk reduction, which India has elevated as a priority for G20 through its presidency of the group. Specifically, India has established the first G20 Disaster Risk Reduction Working Group.
Countries that make up the G20 hold around 85% of the global GDP and about two-thirds of the world population. And as human vulnerability to disasters is strongly linked to economic decisions, the G20 is in a unique position to chart a new path of disaster risk-informed decision-making.
This means not only considering the potential impact of economic decisions on disaster risks, but also leveraging economic tools to reduce existing risks and prevent new ones.
This type of foresight is critical if countries wish to protect their people and grow their economies in the face of increasing and inter-connected risks.
Explainer
Is there a rural bias in national surveys?(Page no. 8)
(GS paper 3, Economy)
The Government of India recently appointed a panel under the chairmanship of Pronab Sen, former Chief Statistician of India to review the methodology of the National Statistical Organisation (NSO).
This happened in the backdrop of articles by Shamika Ravi and BibekDebroy arguing that the usage of outdated survey methodology by national surveys such as the National Sample Survey (NSS), National Family Health Survey (NFHS) and Periodic Labour Force Survey (PLFS), have systematically underestimated India’s development.
According to them, this archaic methodology has failed to capture reality in the recent past as the “Indian economy has been incredibly dynamic in the last 30 years”.
On the other hand, P. C. Mohanan and Amitabh Kundu have reasoned that there is no systematic underestimation of development by these national surveys.
Therefore, there is no need for restructuring and overhauling the survey methodology just because it doesn’t suit certain narratives of development.
However, they accept that there may be errors, which should be minimised. They also advocate the usage of appropriate sample weights to make the national sample adequately representative.
National level data is a key resource for research, policymaking and development planning, so it is of utmost importance to understand and analyse both claims in the light of existing evidence.
For this purpose, we will be taking a closer look at NFHS data, which is being conducted by the Ministry of Health and Family Welfare for the last 30 years with the International Institute of Population Sciences (IIPS) as the nodal agency.
In other words, the survey methodology, which depends heavily on the last Census data, systematically overestimates the rural population.
However, the examination of five rounds of NFHS data doesn’t show any such systematic bias towards rural population.
On the other hand, there is evidence of rural population underestimation by NFHS-3. Overestimation of rural population seems to have taken place by NFHS-2 and NFHS-5.
Only NFHS-1 and NFHS-4 estimates seem to be really close to World Bank estimates and projections based on Census data. However, these errors seem random rather than systematic.
What does India’s first gig workers’ rights Bill stipulate?(Page no. 8)
(GS paper 3, Economy)
On July 24, the Rajasthan government passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023.
It is the first legislation of its kind in India outlining welfare schemes for the State’s approximately three lakh gig workers.
The Bill applies to “aggregators” (digital intermediaries connecting buyers and sellers) and “primary employers” (individual or organisations engaging platform-based workers).
The Bill proposes a Welfare Board comprising State officials, five representatives each from gig workers and aggregators, and two others from civil society.
The Board will “set up a welfare fund, register platform-based gig workers, aggregators and primary employers... facilitate guarantee of social security to platform-based gig workers and to provide for matters connected there with or incidental thereto.”
The Board will maintain a database of companies and workers and each worker will receive a unique ID which “shall be valid in perpetuity.”
In their recommendations to the government, labour unions previously objected to vague terminologies in the Bill that may offer loopholes to companies.
According to the Bill, the Board will create a “Social Security and Welfare Fund” comprising contributions made by individual workers, State government aids, other sources and a ‘welfare cess’ — a cut from each transaction — which the aggregator is required to pay.
The rate of the welfare cess will not exceed 2% nor fall short of 1% of the value of “each transaction,” and aggregators are required to submit the amount within the first five days of a month.
Unions objected to contributing to the fund, arguing that it should be sourced only from aggregator companies and State funds, owing to the fluctuating and inadequate nature of pay.
Under existing labour laws, gig workers who are named ‘partners’ by platforms are not ‘employees’ because theirs is not a “fixed term of employment” — marked by providing exclusive service to one provider for a specified duration.
Text
How slaked lime found in paan is a major cause of ocular burns in children (Page no. 9)
(GS paper 2, Health)
Slaked lime (chuna) is an alkali compound widely used as a binding agent, along with betel nut and other ingredients, to make paan in the Indian subcontinent.
A new study has found that chuna is a major cause for ocular burns among children, along with household chemicals and fireworks.
The study was published in the July 2023 edition of the Indian Journal of Ophthalmology. It was conducted by researchers at the L.V. Prasad Eye Institute, Hyderabad, and Narayana Nethralaya, Bengaluru.
Loosely sold in plastic packets, the quicklime can puff out of the packet on to a child’s eyes. The alkali then burns the ocular surface and can result in eye injury. They are a tragic cause of ocular morbidity, even vision loss, especially among children.
Indian paan contains slaked lime, or chuna (sunnam in Telugu; sunna in Kannada; sunnaampu in Tamil), which is smeared onto a betel leaf and chewed along with the areca nut.
Tobacco is also added to the paan and the alkali quickens its absorption. Paan consumption, especially in South and South East Asia, has been a practice from prehistoric times.
Chuna is often sold in loose and poorly sealed packets across the country. An exploding packet of chuna can deliver the alkali straight into a person’s eye, with the chemical lodging itself inside the eyelid and coating the cornea, the outer transparent layer of the eye.
Here, the alkali chemically burns through the delicate tissue, causing extensive damage. The rim of the cornea, called the corneal limbus, is home to specialised stem cells that replenish the cornea. Chemical burns can destroy the limbus, compromising the cornea’s ability to repair itself.
World
As Modi reiterates power devolution in Sri Lanka, ruling party says no 13-A(Page no. 13)
(GS paper 2, International Relation)
Even as Prime Minister Narendra Modi urged Sri Lanka to meet Tamil aspirations and fulfill its commitment to implement the 13th Amendment, Sri Lanka’s ruling party rejected the prospect, contending that President Ranil Wickremesinghe had no mandate for it.
According to SagaraKariyawasam, General Secretary of the Sri Lanka PodujanaPeramuna (SLPP or People’s Front), Mr. Wickremesinghe had “no moral right” to implement the 13th Amendment, unless he obtained a fresh mandate for it from the people.
It is not for the devolution of power that the people gave power to us (the SLPP),” referring to the outcome of the 2019 presidential election in which Mr. Wickremesinghe’s predecessor Gotabaya Rajapaksa won big.
Mr. Gotabaya had campaigned from a plank of national security, months after the Easter Sunday serial terror bombings shook the island nation.
Mr. Modi, in his press statement after meeting Mr. Wickremesinghe on July 21, said: “We hope that the Government of Sri Lanka will fulfill its commitment to implement the 13th Amendment and conduct Provincial Council elections,” referring to the Sri Lankan legislation that followed the Indo-Lanka Accord of 1987 and guarantees a measure of power devolution to the provinces.
However, the legislation continues to face stiff resistance from Sri Lanka’s Sinhala nationalists, including the ruling SLPP founded and helmed by the Rajapaksas.
The SLPP legislators’ statements reflect not just the Sinhalese political establishment’s continuing reluctance — for over 35 years now — to fully implement a legislation enshrined in the Sri Lankan Constitution, but also the political reality surrounding Mr. Wickremesinghe’s unexpected Presidency.
After a people’s uprising dislodged Mr. Gotabaya from power last year blaming them for the country’s painful economic crash, Mr. Wickremesinghe was elected President in an urgent parliamentary vote.
The six-time Prime Minister was principally backed by the SLPP in the vote, and continues to rely on the party in Parliament.
Days before Mr. Wickremesinghe’s New Delhi visit, he met the Tamil political leadership with a proposal for development and power devolution, offering to implement the 13th Amendment without police powers.
The Tamil National Alliance (TNA), the largest parliamentary group of Tamil legislators, “categorically rejected” it.
Business
SEBI eyes instant settlement for market trades next year (Page no. 14)
(GS paper 3, Economy)
The Securities and Exchange Board of India (SEBI) is working to implement instantaneous settlements in secondary market trades, and is likely to complete the process next financial year.
We are currently working on that. We are engaged with the ecosystem. We believe that in future we will have a mechanism which will facilitate instantaneous settlement of transactions on stock exchanges.
The technology stack which we have and UPI facility provided by banks gives an opportunity that if someone wants to settle trades instantaneously, it can be done.
On instantaneous settlement, we need a little more work. If ASBA goes smoothly, then the next step is instantaneous settlement. I am not sure if this can happen this financial year, it may spill over to the next financial year.
Trade settlements have dipped from T+10 days decades ago to T+1 day, resulting in quicker release of funds to investors.