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Thursday, 13 February 2014

WPI vs CPI

W.P.I
C.P.I
Wholesale price index measures inflation at each stage of productionConsumer price index measures inflation only at final stage of production
Wholesale price index is the middle point of the sum of all the goods bought by the tradersConsumer price index is the middle point of the sum of all the goods bought by consumers
Wholesale Price Index (WPI), is based on the price prevailing in the wholesale markets or the price at which bulk transactions are madeThe Consumer Price Index (CPI), is based on the final prices of goods at the retail level.
There are only few countries that uses WPI to calculate inflation ratesMany nations have already shifted to using CPI.
There are 676 elementary items included in WPI, some of which are insignificant & outdated goods that are considered in WPICPI, on the other hand, have well-selected variables.
Category Weights – Base Year is 2004-05 with Energy Products having 14.91% weights, food 14.3% while services are not included.Category Weights – Base Year is 20105 with Energy Products having 9.49% weights, food 49.7% while services are included with 26.3% weightage.

Reasons for Widening gap between CPI and WPI

Monthly variation between CPI and WPI inflation during January 2012 to January 2013 shows that the direction of the differential is on the rise.

The gap between inflation calculated at WPI (Wholesale Price Index) and CPI (Retail Price Index) has been found widening in the recent months. Monthly variation between CPI and WPI inflation during January 2012 to January 2013 shows that the direction of the differential is on the rise.

WPI inflation has been decelerated to 6.62% in January 2013 from 7.2% in January 2012, however, CPI Inflation has been increased from 7.7% in January 2012 to 10.8% in January 2013.

  • The widening gap between prices at wholesale level and retail level could be attributed to supply chain bottlenecks which impede the process of smooth distribution of goods. Post-production hurdles at several levels including storage, packaging, marketing and infrastructure is a major fuel to retail prices
  • A second reason may be the high weightage of food prices in calculation of CPI. In the WPI, food articles have a 14.33% weight. In the CPI (Rural+Urban), the food index has a 47% weight.Soaring food prices has been a major issue in India. Inflation in the food articles (WPI) has been increased from 6.7% in October 2012 to 8.8% in November 2012 to 11% in December 2012 and 11.8% in January 2013.CPI for food and beverages rose to 13.3% in January 2013 from 13% in December 2012, 11.8% in November 2012 and 11.4% in October 2012

retrieved from http://www.miraeassetmf.co.in/mailers/mar13/wpivscpi.html

Friday, 7 February 2014

Drought Management.

Droughts had been the grim past of our country.It is so sad to believe that a country which boasts of its GDP is so poor in social sector figures.Malnutrition,Health sector,Women and Infant health show a poinant figures.Agriculture sector which is responsible for  more that 50% employment suffers the most due to droughts leading to imbalance in the whole economy chain.

All said and done I believe following are the steps that can be taken to reduce droughts.--

1) Animal Camps to be promoted and maintainde properly as farmers sell them in their distressed situation.
2)Fodder crops,maize,pulses oilseeds etc which are high value but very less water requiring crops must be given precedence.
3)Seed banks must be opened.
4)Millets and ragi must be included in Public Distribution System progressively.
5)Proper infrastructure chain has to be developed to supply food during drought conditions.
6)Promotion of protein rich food like eggs,poultry etc.

One grave issue is about farmers enthusiasm.In a national weekly, 40% of farmers interviewed said that they would quit farming if they had another option. A grim prospect ,isnt it??


Save Tigers


Wildlife Conservation in India Aiming to Sustainable Growth and Development


Wildlife includes all non-domesticated plants, animals, and other organisms. Domesticating wild plant and animal species for human benefit has occurred many times all over the planet, and has a major impact on the environment, both positive and negative. Wildlife can be found in all ecosystems, Deserts, rain forests, plains, and other areas including the most developed urban sites all have distinct forms of wildlife. While the term in popular culture usually refers to animals that are untouched by human factors, most scientists agree that wildlife around the world is impacted by human activities.

Indian wildlife:-
The wildlife of India is a mix of species of diverse origins. The region's rich and diverse wildlife is preserved in numerous national parks and wildlife sanctuaries across the country. Since India is home to a number of rare and threatened animal species, wildlife management in the country is essential to preserve these species. According to one study, India is home to about 60-70% of the world's biodiversity. India, lying within the Indomalaya ecozone, is home to about 7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian, and 6.0% of flowering plant species.

Indian Administrative Services(IAS)

The officers of the IAS play a major role in managing the bureaucracy of both the Union Government (Central Government) and the state governments, with its officers holding strategic posts across the country. It is one of the three All India Services (along with the Indian Police Service and the Indian Forest Service)

The Civil Service

History: The Indian Civil Service (Pre Independence)
In 1854, the British rulers introduced the principle of open competitive examination for entry into the Indian Civil Service (ICS). Although Indians had a right to sit for it, the only examination centre was in London and the system operated as a bar to those who could not afford to travel so far. The Indianisation of the ICS started only in 1922, when the entrance examination was held simultaneously in Allahabad, under pressure from the Indian National Congress. However, the ICS continued to be dominated by the British, and it was often denigrated as ‘neither Indian, nor Civil, nor Service’.

After Independence the loyalty of ICS officers was suspect. Public opinion was generally hostile to the ICS in view of its identification with foreign rule and its obstructing role during the freedom struggle. But Sardar Patel, the leader of the conservatives in Congress, did ultimately succeed in forcing his proposals down the throat of an unwilling Constituent Assembly. He advocated the importance of administrative continuity for the stability of the country. Finally, the institution was maintained under a new name, the Indian Administrative Service.

A nation which every Indian Wants

1.A Nation where the rural and urban divide has reduced to a thin line.
2. A Nation where there is an equitable distribution and adequate access to energy and quality water.
3. A Nation where agriculture, industry and service sector work together in symphony.
4. A Nation where education with value system is not denied to any meritorious candidates because of societal or economic discrimination.
5. A Nation which is the best destination for the most talented scholars, scientists, and investors.
6. A Nation where the best of health care is available to all.
7. A Nation where the governance is responsive, transparent and corruption free.
8. A Nation where poverty has been totally eradicated, illiteracy removed and crimes against women and children are absent and none in the society feels alienated.
9. A Nation that is prosperous, healthy, secure, devoid of terrorism, peaceful and happy and continues with a sustainable growth path.
10. A Nation that is one of the best places to live in and is proud of its leadership.

Monday, 3 February 2014

Brief Account of IAS and other Central Services(Posts Classification and Training Structure)

There is a lot of confusions regarding Group A ,B,C Services,Gazzetted posts and Training of the All India Civil Servants. So on demand I am posting a brief detail about the Civil Services and other Group B services.

Basically the creation of All India Services lies in the hand of Parliament act but it can only be done after recommendation from Raja Sabha(done to protect the interests of state).All India Services Act 1951 regulates the formation of rules and procedures for these services.
All India Services are managed and controlled by different Ministries  such as:
-IAS by Ministry of Personnel
-IPS by Ministry of Home Affairs
-IFS by External Affairs Ministry
-IFoS by Environment and Forest Ministry

Central Services can be divided into 4 categories-
Group A(Selected through Civil Services Examination conducted by UPSC,more than 50 posts now.)
Group B(Selected through SSC)
Group C(Selected through SSC)
Group D

Group C services consist of clerical personnel and Group D consists of manual personnel.
Group A and Group B are Gazetted Officers whereas Group C & D are non Gazetted posts.

Committes which led to evolution of present recruitment system
Macauley Committee(1854)
Kothari Committee
Satish Chandra Committee
Alagh Committee
Hota Committee

Training Structure for the UPSC Civil Servants:
The UPSC submits the list of finally selected candidates to Ministry of Personnel.Through this lists Personnel Ministry,Home Ministry and External Affairs Ministry selects candidates for IAS,IPS and IFS respectively.This is followed by other ministeries and departments in a fixed order
IAS officers are also recruited through other methods also i.e –Promotion from State Civil Service(over all 33.33% posts in IAS),Special Selections from gazetted posts of State governments who are members of State Administrative Services.

After final Selection the Training is done in Lal Bahadur Shastri National Academy of Administration at Mussorie.The Training Structure is as follows:

1. Foundational Training------------------------------------------------------4 months
2. Professional Training-First Spell--------------------------------------------5 months
3. District training in the respective State Cadres------------------------------12 months
4. Professional Training –Second Spell----------------------------------------3 months


After common Foundational Training Professional Training is different for different officers:

  • IPS officers continue at—National Police Academy(Hyderabad)
  • IFS officers at Foreign Service Institute,New Delhi and Language Training at Indian Mission Abroad.
  • IRS officers at IRS Training Institute Nagpur
  • Indian Audit and Accounts ar IAAS Staff Training College Shimla 
and the list goes on...

Sunday, 2 February 2014

National Skills Qualifications Framework (NSQF)

National Skills Qualifications Framework (NQF) offers vocational qualifications according to levels of learning, skills and aptitude.
The hallmark of the programme would be that the credit accumulation and transfer system will be integrated in the NSQF,
So candidates can continue education any time  with vocational training and work at different stages in their lives according to their needs and convenience. 
The framework will also enable mobility among students from vocational to general education and vice versa and help make the qualifications more understandable and transparent. 
The framework would be anchored and operationalised by the National Skill Development Agency (NSDA), an autonomous body attached to the Ministry of Finance, mandated to coordinate and harmonise skill development efforts of the Government of India and the private sector. 
The framework is the amalgamation of separate skill framework developed by both the HRD Ministry and the Labour and Employment Ministry. 
There are 10 levels in the framework, with the entry level being 1, and the highest level being 10. This will enable a candidate to acquire desired competency levels, transit to the job market and, at an opportune time, return for acquiring additional skills to further upgrade competencies. 

Coal Bed Methane Policy in India

CBM Policy , 1997 aims to maintain a competitive bidding system for exploration of CBM blocks.The contractors pay a royalty of 10 % to state govt.The duration of contract is 38 years and 40 years (normal area and frontal area respectively).
CBM is a natural gas extracted from coal beds.It is an unconventional source of energy and has become an important source in countries like US, Canada etc.
INDIA has CBM reserves of 4.6 trillion cubic metres across 8 states. Recently the simultaneous mining of coal and exploration of CBM reserves has been allowed which was earlier prohibited.Union Cabinet has given clearance to Coal India Ltd (CIL) for CBM exploration.

What are the reasons for problems in implementation of health schemes

Recently the Sample Registration System report released by Registrar General of India mentioned that Under-5 IMR of India is currently 42 per 1000 which is a great disparity from the goal of 30 by 2015. There are various reasons behind the slow implementation of the myriad health schemes undergoing currently. These are:
1.Different levels of prevalent IMR in different states. Ex-73 in UP, 37 in Tamil Nadu
2. Different level of infrastructure and skilled human resources in different states.
3. Since Public Health is a state subject fund allocation and prioritization is different in different states.
4. Lack of accountability and responsibility in the implementation chain of these schemes.
These problems are not permanent and can be rooted out by proper and wullful implementation. Nevertheless specific measures can also be followed like  prioritization of low performing states for fund allocation like tribal and LWE states, incentives and appraisal for successful implementation and utilisation of funds.