July 13, 2023 | Your One-Stop Solution for Daily Preparation
Greedflation | Explained
Explore the concept of 'Greedflation' and its effects on global and Indian economies. Greedflation refers to the idea that excessive corporate greed contributes to inflationary pressures within an economy. While inflation is typically caused by cost-push and demand-pull factors, Greedflation focuses on the Profit-Price Spiral, where companies raise prices excessively to maximize their profit margins. Economists have debated the role of greed in driving inflation, with some advocating measures to control corporate price-gouging and others suggesting that greed can positively affect the economy. The impact of Greedflation on the global and Indian economies is a subject of ongoing discussion and requires further research and analysis.
Highlights of the Day
1. India's Retail Inflation Hits Three-Month High of 4.81% in June, Driven by Soaring Food Prices
The retail inflation in India rose to a three-month high of 4.81% in June 2023, driven by a spike in food prices, particularly cereals, pulses, milk, and tomatoes. Urban consumers faced nearly 5% inflation, with food price inflation doubling from the previous month. Although retail inflation has stayed below the Reserve Bank of India's upper tolerance threshold of 6%, economists warn that rising vegetable prices and the impact of the "flooding plus uneven monsoon" situation could exacerbate food price pressures [1].
2. Climate Change Alters Color of 56% of World's Oceans, Turning Tropics Green, Reveals Study
A new study reveals that climate change has caused a color shift in 56% of the world's oceans, with the waters in the tropics turning green. The study, published in Nature, explains that the change in color indicates alterations to phytoplankton communities, which are vital for marine life and carbon absorption. The researchers analyzed two decades of data from satellite observations and simulations to demonstrate that climate change is driving the color change. The findings emphasize the impact of climate change on ocean ecosystems and call for urgent action to mitigate its effects. Additionally, the study's results can aid in the designation of marine protected areas by policymakers and experts [2].
3. Anthropocene Epoch Officially Begins in 1950, Declares Working Group
The Anthropocene, a new geological epoch characterized by the significant impact of human activities on Earth's systems, is proposed to have a starting date of 1950, according to the Anthropocene Working Group (AWG). The AWG chose this date based on evidence from Crawford Lake near Toronto, Canada, which contains traces of the radioactive element plutonium. The lake's calcite crystals provided a chronological marker, and an increase in plutonium particles around 1950 indicated human influence, marking the beginning of the Anthropocene era. The proposal will be further evaluated within the scientific community, and if approved, the International Union of Geological Sciences could ratify the new epoch in August 2024 [3].
4. India's Industrial Output Shows Growth in May, Driven by Infrastructure and Manufacturing Sectors
India's industrial output in May showed signs of improvement compared to April, with a growth rate of 5.2%. This growth was driven by sectors such as mining, manufacturing (especially consumer durables), infrastructure, and construction goods. However, the production of primary and intermediate goods remained modest, and the growth of consumer non-durables slowed down. Among the manufacturing sectors, several experienced contractions, while pharmaceuticals and motor vehicles saw significant growth. Economists suggest that while there are positive indicators, sustained growth and increased consumer spending are still necessary. Furthermore, based on various indicators, it is expected that the growth rate of the Index of Industrial Production (IIP) may moderate to around 3%-4% in June [4].
5. India's Atal Vayo Abhyuday Yojana: Empowering and Inclusive Support for Senior Citizens
The Ministry of Social Justice and Empowerment has implemented the Atal Vayo Abhyuday Yojana (AVYAY) as part of its efforts to create an inclusive society. AVYAY is a comprehensive initiative aimed at empowering senior citizens and recognizing their invaluable contributions to society. Under the scheme, financial assistance is provided to organizations running Senior Citizen Homes/Continuous Care Homes, ensuring basic amenities, entertainment opportunities, and active aging. Additionally, the Rashtriya Vayoshri Yojana (RVY) component provides assisted living devices to senior citizens with age-related disabilities. The government has also established a national helpline called Elderline to offer support and assistance to senior citizens. These initiatives reflect the government's commitment to the well-being, empowerment, and social inclusion of senior citizens, recognizing their importance and contributions to the nation [5].
Source: The Hindu | DownToEarth | Indian Express | PIB
Practice Questions for Prelims
Q1: Which of the following is not a Ramsar site in India?
A) Chilika Lake
B) Loktak Lake
C) Keoladeo National Park
D) Manas Wildlife Sanctuary
Q2: Consider the following statements:
Statement 1: The "Hampi" archaeological site in Karnataka, India, was the capital of the Vijayanagara Empire.
Statement 2: It is a UNESCO World Heritage Site.
A) Only Statement 1 is correct.
B) Only Statement 2 is correct.
C) Both Statement 1 and Statement 2 are correct.
D) Neither Statement 1 nor Statement 2 is correct.
Q3: Consider the following statements:
Statement 1: The "Ajanta Caves" in Maharashtra, India, are Buddhist rock-cut cave monuments.
Statement 2: These caves were built during the Maurya Empire.
Statement 3: The Ajanta Caves are renowned for their exquisite ancient paintings.
A) Only Statement 1 and Statement 2 are correct.
B) Only Statement 1 and Statement 3 are correct.
C) Only Statement 2 and Statement 3 are correct.
D) Statement 1, Statement 2, and Statement 3 are correct.
Q4: Consider the following statements related to "Indian Classical Dances":
Statement 1: Bharatanatyam is a classical dance form originating from the state of Kerala.
Statement 2: Kathakali is a dance-drama form known for its elaborate costumes and facial makeup.
Statement 3: Odissi is a classical dance form that originated in the eastern state of Odisha.
A) Only Statement 1 and Statement 2 are correct.
B) Only Statement 1 and Statement 3 are correct.
C) Only Statement 2 and Statement 3 are correct.
D) Statement 1, Statement 2, and Statement 3 are correct.
Q5: Who was the author of the book "Poverty and Un-British Rule in India"?
A) Dadabhai Naoroji
B) R.C. Dutt
C) Gopal Krishna Gokhale
D) Jawaharlal Nehru
Today’s Question for Mains Answer Writing
Discuss the role of the Election Commission of India in ensuring free and fair elections in the country. How has it evolved over the years to uphold the principles of democracy? Provide examples and suggest measures to further strengthen its effectiveness.(Word limit: 250 words)
Need help in writing or evaluation?
What we see matters
Some insightful observations from past UPSC papers:
Considering the Indian Economy, Inflation has been regularly asked in UPSC prelims in different formats. Students are advised to have a good understanding of Inflation, its types, and its impact on market instruments.
Note: For answer key and explanation of daily practice questions, join us at: t.me/tinkerchild
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