Questions are framed from the February 2016 monthly magazine.Go through it to answer the questions better.
Answer in 200 words each
- What is El-Nino and La-Nina ? What are their possible impacts on Indian monsoon ? Supposing that you are a district collector of a drought-hit region, what are the administrative measures you will take to tackle the problem arising out of deficient monsoon.
- Lately both Ebola and Zika viruses have been posing serious threats to public health across the world.In this context, analyze India’s vulnerability and preparedness to tackle these crises.
- What is AYUSH ? How the components differ from each other ? What are the Government of India’s initiatives in this regard ? Can AYUSH provide holistic healthcare ?
- Write a brief note on Solar energy and India’s engagement in this regard.Bring out the possible impediments to realize the goal of solar energy and suggest a way forward.
- Write a brief note on genetically modified crops and how they differ from hybrid crops.What are the possible challenges and benefits of GM crops?
- If roads are the artery of India , railway is it’s spine.In this context critically analyze India’s infrastructure impediments and suggest a way forward.
- Do you think India is in a “sweet-spot” as far as world economics is concerned ? Provide rationale behind your observation.
- What is co-operative and competitive federalism ? Do you think proper infusion of this two concepts can help India usher in a greater success ?
- In light of recent TRAI order, critically analyse net neutrality and it’s various components ?
- Write a note on food security and various challenges in this regard.Write critical note on Government of India’ initiatives towards ensuring food security and suggest a way forward.
- It is often said that India is a sleeping giant. How to wake it up ?
- Write a brief note on protected area network of India and their significance for sustenance of Indian civilization.
If you want your answer to be reviewed -write it in a pen/paper medium and send it as a single PDF to upsctree@upsctree.com for review.If you write in the comment section and we will provide the review there too.
Thank You
UPSCTREE Team
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.