Syllabus– Industrial Corridors & Economic Development; Transportation: Means of Transportation, Role of Road and Rail Network in Economic Development, Highways and Express Highways, Major Ports – changing trends and direction of India’s Trade – role of WTO, Strategic location of India in the Indian Ocean;
Number of questions- Mains: 02, Prelims – 10
Mains Questions of the day-
1.Reently, the Commerce and Industry Minister stated that World Trade Organization (WTO)’s “Agreement on Agriculture” is tilted against to developing countries. Discuss.
Introduction: –
Write briefly about WTO’s “Agreement on Agriculture”.
Body: –
Mention the concerns of India regarding Agreement on Agriculture.
Conclusion: –
These unfair rules need to be challenged even if they have been democratically framed. Reforms needed through consensus.
Content: –
Agreement on Agriculture (AoA): –
- The Agreement on Agriculture (AoA) is a World Trade Organisation (WTO) treaty that was negotiated during the Uruguay Round and ratified in Marrakesh, Morocco.
- In 1995, the AoA came into operation.
- It provides a framework for the long-term reform of:
- Agricultural trade and
- Domestic policies
- With the aim to lead:
- the fairer competition and
- a less distorted trade (Distorting trade caused by agricultural subsidies).
- The agreement covers agricultural products with the exception of forestry and fishing products, rubber, sisal, jute, coir, and abaca.
Agreement on Agriculture covers:
The Agreement on Agriculture consists of three pillars: Domestic support, Market access, and Export subsidies.
- Domestic support:
- It divides domestic support into two categories:
- trade-distorting and
- non-trade-distorting (or minimally trade-distorting).
- It calls for reduction in domestic subsidies that distorts free trade and fair price.
- It classifies the subsidies into “boxes” depending on consequences of production and trade:
- Blue Box: -There are no limits on spending on blue box subsidies.
- Green Box: – Subsidies that do not distort trade, or at most cause minimal distortion such as environmental protection and regional development programmes. Therefore, they allowed without limits.
- Amber Box :-Domestic support which considered to distort production and trade fall into the amber box. These include to support prices, or subsidies. WTO place some restriction on this box.
- Market access
- Market access refers to the reduction of tariff or non-tariff barriers by WTO members.
- Least developed countries (LDCs) were exempt from tariff reductions, but they either had to convert non-tariff barriers to tariffs -a process called tariffication or “bind” their tariffs, creating a ceiling that could not be increased in future.
- Export subsidies
- Subsidy on inputs of agriculture and incentives for exports such as import duty remission etc., making export cheaper, those are included under export subsidies.
- These can result in dumping of highly subsidized (and cheap) products in other countries and damage the domestic agriculture sector of other countries.
- The AoA required: –
- Developed countries to reduce export subsidies by at least 36% (by value) or by 21% (by volume) over six years.
- For developing countries, the agreement required cuts were 24% (by value) and 14% (by volume) over ten years.
Major concerns of India regarding Agreement on Agriculture: –
- India insists for permanent solution to the dispute over public stockholding (Public Distribution System) of food grains.
- Developing countries insist that they should not be penalized for breaching any limits, arguing that such stockholdings are crucial for food security.
- Opening of the markets has taken place mainly in the developing countries.
Access of market in developed by developing countries, continues to be restricted due to their:
- high trade distorting domestic support policies and
- high tariffs.
- Use of Sanitary & Phytosanitary (SPS)Measures and Technical Barriers created by Developed Countries to selectively restrict imports from developing countries by imposing higher standards than those imposed by international bodies.
- Developed countries manage to significantly subsidize agriculture in their countries while accusing emerging countries, like India, of engaging in trade-distorting practices.
- Even with low subsidies, India should be concerned about exceeding the 10% subsidy cap.
- According to a joint India-China study, developed countries offer their farmers several times more subsidies than the rest of the world.
- Developed countries regularly criticize developing countries for policies such as the Minimum Subsidize Price (MSP), while continuing to support their farmers and distorting the trade and market entry barriers.
2.Parliament has passed the Major Port Authorities Bill, 2020.Mention its salient features.
Introduction: –
Write briefly about importance of that bill.
Body: –
Write the salient features of that Bill.
Conclusion: –
- It has been alleged that the Bill is aimed at privatizing the ports and diluting the powers of the states on land use.
- Though the new Bill addresses big hurdles that major ports have been facing, service quality and marketing are lacking at these ports as compared to private ones.
- Creation of a mechanism is not enough. Under the proposed landlord port model, the board that is created must use the autonomy granted to it.
- The board has to operate with freedom and take decisions to improve service quality, efficiency, land usage, asset-monetisation, tariff setting and dispute resolution, among other issues.
Content: –
- The Bill seeks to provide greater autonomy in decision-making to 12 major ports in the country and professionalise their governance by setting up boards.
- Trade and Commerce: To promote the expansion of port infrastructure and facilitate trade and commerce.
- Decision Making: It imparts faster and transparent decision making benefiting the stakeholders and better project execution capability.
- Reorienting Models: Reorienting the governance model in central ports to landlord port model in line with the successful global practice.
- It also seeks to replace the Major Port Trusts Act, 1963.
Salient Features of bill:
- Board of Major Port Authority:
- The Bill provides for the creation of a Board of Major Port Authority for each major port.
- Those Boards will replace the existing Port Trusts.
- Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government.
- Composition:
- Provision has been made for inclusion of representatives of State Government in which the Major Port is situated, Ministry of Railways, Ministry of Defence and Customs, Department of Revenue as Members in the Board.
- It will also include a Government Nominee Member and a Member representing the employees of the Major Port Authority.
- Powers:
- The Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.
- It will also have the powers to fix reference tariffs for various port services.
- Further, PPP (Public Private Partnership) operators will be free to fix tariff- based on market conditions.
- Provisions of Corporate Social Responsibility (CSR) and development of infrastructure by the Port Authority have been introduced.
- Adjudicatory Board:
- An Adjudicatory Board will be created to carry out the residual function of the erstwhile TAMP (Tariff Authority for Major Ports), to look into disputes between ports and PPP concessionaires.
- TAMP has been a multi-member statutory body with a mandate to fix tariffs levied by major port trusts under the control of the Centre and private terminals, therein.
- Penalties:
Any person contravening any provision of the Bill or any rules or regulations will be punished with a fine of up to one lakh rupees. - Level-Playing Field:
- This Bill is going to create a level-playing field not just between major and private ports but also between major port terminals and PPP terminals.
- Within major ports, PPP terminal players too have had to take tariff approvals from the TAMP. The Bill however, eliminates taking approval from the body.
- Due to this, investment in PPP is expected to go up at major ports in the coming years.
- In Line with Aatmanirbhar Bharat Abhiyan:
- The move will certainly pave the way for driving the country’s vision towards Aatmanirbhar Bharat and making India a global manufacturing hub.
- In terms of volume, 70% of cargo movement is through ports while 90% in value terms.
Prelims Question of the day: –
1.National Industrial Corridor Development and Implementation Trust (NICDIT) comes under which of the following agencies?
- National port trust
- Department for promotion of industry and internal trade
- National Highways Development Project (NHDP)
- Directorate General of Civil Aviation
Answer: B
Explanation:
National Industrial Corridor Development and Implementation Trust (NICDIT): –
- The implementing agency of NICP is the National Industrial Corridor Development and Implementation Trust (NICDIT).
- NICDIT is under the Department for Promotion of Industry and Internal Trade (DPIIT).
- NICDIT originated in 2007 as the Delhi Mumbai Industrial Corridor Project Implementation Trust Fund (DMIC-PITF). The DMIC-PITF’s mandate was expanded and redesignated as the NICDIT in 2016.
- It will monitor and coordinate all central efforts at developing the industrial corridor projects.
- It is also responsible for approving and sanctioning projects.
2.Which of the following institution is funding the Chennai-Kanyakumari industrial Corridor?
- World Bank
- IMF
- Asian Development Bank
- New Development Bank
Answer: C
Explanation:
- The Asian Development Bank recently approved 484 million USD for CKIC (Chennai-Kanyakumari Industrial Corridor) in Tamil Nadu.
- About the Project The project will upgrade 590 km of state highways in the CKIC influence areas.
- The Climate Change adaptation measures are to be incorporated in the highway upgrades such as improved drainage, resizing of bridges etc.
3.Which of the following is the longest National Waterway of India?
- Sadiya-Dhubri
- Kakinada-Puducherry
- Allahabad-Haldia
- Kotapuram-Kollam
Answer: C
Explanation:
- To promote inland water transport in the country, 111 ‘inland Waterways’ has been declared as ‘National Waterways’ under the National Waterways Act, 2016.
- Inland water transport in the country is being promoted as an economical, environment friendly supplementary mode of transport to rail and road.
- Under Entry 24 of the Union List of the Seventh Schedule of the Constitution, the central government can make laws on shipping and navigation on inland waterways which are classified as national waterways by Parliament by law.
National Waterway 1:
- From Allahabad to Haldia with a distance of 1620 km.
- The NW1 run through the Ganges, Bhagirathi and Hooghly river system with having fixed terminals at Haldia, Farrakka and Patna.
- Floating terminals at the riverside cities like Kolkata, Bhagalpur, Varanasi and Allahabad.
- It is the longest National Waterway in India.
4. Which of the following represents the “Open Sky Policy” of Civil Aviation?
- Foreign airlines or association of exporters can bring any foreign freighters to the country.
- Traders are free to export their goods.
- There is no restriction on imports of goods from any port of the world.
- This is a device to increase international trade.
Answer: A
Explanation:
- Open Sky Agreements are bilateral agreements that the two countries negotiate to provide rights for airlines to offer international passenger and cargo services.
- It expands international passenger and cargo flights.
5.Which port is hit by cyclones during October and November?
- Kandia
- Marmagoa
- Kochi
- Chennai
Answer: D
Explanation:
- Chennai is the oldest artificial harbor on the east coast of India.
- It does not possess a natural harbor and an artificial harbur has been created in an area of 80 hectares near the coast.
- Chennai is often hit by cyclones in October and November and shipping becomes difficult during these months.
- It is ill-suited for large ships because of the lesser depth of water near the coast.
6. Which of the following is a tidal port?
- Kolkata
- Marmagoa
- Kochi
- Ennore
Answer: A
Explanation:
- Kolkata port is located on the left bank of river Hooghly about 128 km inland from the Bay of Bengal.
- Water in the river Hooghly is not deep enough to accommodate large ships.
- Ships enter the port at the time of advancing tide and go out in the open sea along the receding tide.
7. Which of the following has not been declared the National waterway in India?
- Allahabad – Haldia stretch of the G Bhagirathi-Hoogly river system
- Sadiya-Dhubri Stretch of the Brahm, river
- The Mahanadi delta stretch
- Kakinada to pondicherry
Answer: C
Explanation:
National Waterway 1:
- From Allahabad to Haldia with a distance of 1620 km.
- The NW1 run through the Ganges, Bhagirathi and Hooghly river system with having fixed terminals at Haldia, Farrakka and Patna.
- Floating terminals at the riverside cities like Kolkata, Bhagalpur, Varanasi and Allahabad.
- It is the longest National Waterway in India.
National Waterway 2:
- Brahmaputra River from Sadiya to Dhubri in Assam state.
- The NW2 is the third longest Waterway with a total length of 891 km.
National Waterway 4:
- NW4 connects Kakinada to Pondicherry.
- The NW4 is the second longest waterway of India.
- Total length of 1095 km in Andhra Pradesh and Tamil Nadu.
8. Which is the following not comes under classification of Roads in India?
- State Highways
- District Roads
- National Highways
- Border Roads
Answer: D
Explanation:
Classification of Roads:
The following categories are used to classify roads:
- National Highways
- State Highways
- District Roads
- Rural Roads
| Name | Responsibility of | Connects |
| National Highways | Central Government | State capitals |
| State Highways | State Government | State Capital to District HQ |
| District roads | Zila Parishad | District HQ to tehsil and Blocks |
| Village roads | Gram Panchayat | Villages to neighbouring towns |
National Highways
- The National Highways are the principal roadways that are built and maintained by the central government.
- These routes are intended for inter-state transportation as well as the mobility of defence personnel and equipment in strategic locations.
State Highways
- State governments create and maintain these structures. They connect state capitals with district headquarters and other significant cities.
- The National Highways are connected to these roads.
- These roads account for 4% of the country’s total road length.
District Roads
- These highways serve as a link between the District Headquarters and the district’s other major nodes.
- They make up 14% of the country’s total road length.
Rural Roads
- These roads are important for connecting rural communities.
- Rural roads account for approximately 80% of India’s total road length.
- Because the nature of the terrain influences the density of rural roads, there is regional diversity.
9. Which of the following places connect the east-west corridor of the Golden Quadrilateral?
- Silchar and Porbandar
- Guwahati and Ahmedabad
- Kandia and Tinsukia
- Itanagar and Jamnagar
Answer: A
Explanation:
Golden Quadrilateral
- It is a highway network that connects Delhi, Mumbai, Kolkata, and Chenna
- Thereby uniting India’s major industrial, agricultural, and cultural centers.
- The project began in 2001.
- The National Highways Authority of India (NHAI) is in charge of it.
- The fundamental goal of these superhighways is to shorten the distance and time connecting India’s four megacities.
- This project includes:
- The North-South corridor connecting Srinagar (Jammu and Kashmir) and Kanyakumari (Tamil Nadu), and
- The East-West corridor connecting Silchar (Assam) and Porbandar (Gujarat).
- The network also connects other key metropolises such as:
- Pune, Ahmedabad, Jaipur, Kanpur, Surat in the north and
- Bengaluru, Visakhapatnam, and Bhubaneswar in the south.
10. Which of the following is the deepest landlocked protected port of India?
- Haldia
- Jawaharlal Nehru
- Chennai
- Vishakhapatnam
Answer: D
Explanation:
- Visakhapatnam is the deepest landlocked and well-protected harbour.
- This port was originally planned as an outlet for the export of iron ore.