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What Consumption Expenditure Survey Leaves Unanswered

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Why in News?

The release of the Household Consumption Expenditure Survey (HCES) for 2022-23 marks a significant milestone after a decade-long hiatus.

The factsheet offers valuable insights into present patterns of household consumption, but decisive conclusions should not be made due to changes in methodology, survey design, and item coverage.

Also, it is crucial to understand key takeaways from the factsheet, notable changes, challenges in comparability, and indicators such as rural-urban inequality, inter-caste differences, and shifting consumption patterns.

The HCES for 2022-23 and Difference from Earlier Rounds of Surveys

A New Survey Structure

In contrast to earlier survey rounds, the HCES adopts a segmented approach by conducting three separate surveys on food items, consumables and services, and durable goods.

This departure from the traditional single-questionnaire method aims to enhance the precision of responses by focusing on specific categories.

While this change aligns with the need to combat respondent fatigue, it raises concerns about comparability with previous rounds that followed a more unified structure.

Introduction of Multiple Household Visits

Another notable change in the methodology is the introduction of multiple separate visits to households.

This adjustment acknowledges the well-documented issue of respondent fatigue associated with lengthy questionnaires conducted in a single sitting.

Shorter, focused questionnaires are expected to yield more precise answers. However, this modification poses challenges in terms of comparability, potentially resulting in higher expenditure estimates.

To assess the magnitude and direction of this potential bias, a subset of households could have been subjected to the older single-visit design for comparison.

Imputed Values for Social Welfare Programs

The HCES incorporates imputed values for items received or consumed free of cost through various social welfare programs.

This includes essentials like rice, wheat, footwear, laptops, and motorcycles. However, the validity of these imputed values remains uncertain until unit-level price and quantity data are released.

Understanding the impact of such imputations on the overall consumption expenditure distribution is crucial for a comprehensive analysis.

Changes in Item Coverage

The survey covers 405 items of consumption, compared to 347 in the 2011-12 round.

Such revisions in item coverage are not uncommon and are reflective of evolving consumption habits over time.

However, these changes further contribute to the challenge of ensuring comparability across different survey rounds.

An Analysis of HCES Data for Within-Survey Indicators

Rural-Urban Inequality

Average all-India urban monthly per capita consumption expenditure (MPCE) at Rs 6,459 in 2022-23, is roughly 72 percent higher than in rural areas (Rs 3,773).

 

The corresponding figure was 84 percent in 2011-12. This seems to indicate a decline in rural-urban inequality over the decade.

 

However, there are two caveats. This does not account for the rural-urban price differential, which can fluctuate.

Additionally, a longer view reveals that the rural-urban gap tends to fluctuate. From

75.9 percent in 1999-2000, it rose to 90.8 in 2004-05, and then declined to 83.9 in 2011- 12.

Moreover, there is no indication of whether the ratio increased or decreased in 2017- 18.

Distribution of Consumption Expenditure

In 2011-12, the ratio of the 10th percentile of the rural expenditure distribution (Rs 710) to the 90th percentile (Rs 2,296) was 0.31.

This ratio is 0.33 in 2022-23 (Rs 1,782/Rs 5,356). In other words, the consumption expenditure of the bottom 10 percent of the rural distribution is roughly one-third of the top 10 percent a ratio that has not changed substantially over the decade.

For urban areas, the corresponding ratio was 0.21 in 2011-12, which has risen to 0.27 in 2022-23, indicating a reduction in urban inequality.

Inter-Caste Differences

The ratio of average rural Scheduled Caste (SC) MPCE to that of the higher-ranked castes was 0.73 in 2011-12.

This has remained unchanged at 0.7 in 2022-23. For rural Scheduled Tribes (ST), this ratio has improved marginally from 0.65 to 0.69 and for Other Backward Classes (OBC), from 0.83 to 0.87.

While rural India does not show a marked narrowing of inter-caste gaps in MPCE, the urban figures suggest a narrowing of inter-group MPCE gaps.

For SCs, the ratio increased from 0.63 to 0.72; for STs, from 0.68 to 0.74 and for OBCs, from 0.7 to 0.84.

Shifting Consumption Patterns Highlighted by HCES Data

The factsheet reveals that in rural India, the percentage share of cereals, a food staple, in average MPCE is now 4.91 percent and 3.64 percent in urban India, compared to

10.75 percent and 6.66 percent respectively in 2011-12.

This is accompanied by an increase in the share of processed foods and beverages.

Overall, HCES indicates a decline in the share of food expenditure over the decade, which stands at 46 percent in rural and 39 percent in urban India.

There have been notable shifts which include an increase in the share of medical expenses on hospitalization, conveyance, and durable goods in rural India, and paan, tobacco, intoxicants, conveyance, and durable goods in urban India.

Way Forward: Need to Follow-Up the Survey

The release of the HCES findings for 2022-23, while limited in scope, represents a welcome development in the pursuit of understanding India's consumption landscape.

The provided factsheet offers valuable insights into present consumption patterns, rural-urban disparities, and inter-caste differences.

However, its limited scope necessitates a prompt release of the full price and quantity unit-level data for the surveyed year, 2022-23.

This complete dataset is crucial for researchers, policymakers, and analysts to delve deeper into the intricacies of the survey and draw more nuanced conclusions.

A continuous and updated flow of data ensures a more accurate understanding of evolving consumption habits, poverty indicators, and other critical socio-economic parameters.

Timely follow-up surveys enable policymakers to adapt strategies based on current trends rather than historical data.

Conclusion

While the changes in HCES survey design aim to improve data collection methodologies, challenges in comparability and potential biases need careful consideration.

The insights into rural-urban inequality, inter-caste differences, and evolving consumption patterns highlight the complexity of India's socio-economic landscape.

For a comprehensive understanding, the swift release of full price and quantity unit- level data is imperative, ensuring that future analyses and policy decisions are well- informed and nuanced.

Maulana Azad Education Foundation (MAEF)

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Overview

The Ministry of Minority Affairs recently ordered the closure of the Maulana Azad Education Foundation (MAEF)

About Maulana Azad Education Foundation (MAEF)

MAEF was established on the occasion of Maulana Abul Kalam Azad's birth centenary celebrations.

The Foundation is a voluntary, non-political, non-profit making social service organization.

It was registered under the Societies Registration Act, 1860, on 6th July 1989.

The Foundation was established to promote education amongst the educationally backward minorities in particular and other weaker sections in general.

It is fully funded by the Ministry of Minority Affairs, Govt. of India. Structure:

The Hon'ble Minister of Minority Affairs is Ex-Officio President of the Foundation.

The General Body of the Foundation consists of 15 members, of which six are ex-officio, including the President, MAEF, and rest nine are nominated by the President, MAEF.

The management of the Foundation is entrusted with its Governing Body, which consists of six members (including the President, MAEF) selected from amongst the members of the General Body.

Through programmes like the Begum Hazrat Mahal National Scholarship Scheme and the Khwaja Gharib Nawaz Skill Development Training Scheme, the Foundation worked to improve employment opportunities for minorities and awarded scholarships to deserving girls from religious minorities.

 

The evolving role of the Colombo Security Conclave

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Context: Recently, India’s National Security Adviser (NSA), took part in the 6th NSA meeting of the Colombo Security Conclave (CSC) which agreed upon a road map for the year 2024.

About:

Originally known as the Trilateral for Maritime Security Cooperation, this regional security grouping was established in 2011.

  • The primary aim is to foster a safe, secure, and stable Indian Ocean, with India in a leadership role.
  • Initially comprising India, Sri Lanka, and the Maldives, Mauritius joined during the 5th meeting in 2022.
  • Bangladesh and Seychelles, initially observers, have received invitations to become active participants.
  • All CSC countries are members of the Indian Ocean Rim Association (IORA) and the Indian Ocean Naval Symposium (IONS).
  • The group operates based on five pillars, including maritime safety and security, counterterrorism, combating trafficking and transnational organized crime, cybersecurity, and humanitarian assistance and disaster relief.
  • A permanent secretariat in Colombo, established in 2021, coordinates activities and implements decisions from National Security Advisor (NSA) level meetings.
  • Meetings are held at the NSA and deputy NSA levels.
  • Security-focused exercises, such as Exercise Dosti XV and Table Top Exercise (TTX), have been conducted.
  • Since 2021, the group has addressed various issues, including terrorism, narcotics trafficking, cybercrime, marine pollution, maritime law, and coastal security.
  • Conferences on oceanography, hydrography, and coastal security were conducted in 2022, with further iterations planned for 2024.
  • Joint working groups focus on terrorism, cybersecurity, humanitarian aid and disaster relief, and transnational organized crime.
  • The group collaborates on capacity-building in areas like counterterrorism, police, law enforcement, and cybersecurity.

Changing dynamics of Colombo Security Conclave (CSC)

  • The Colombo Security Conclave (CSC) faced disruption in 2014 due to escalating tensions between India and the Maldives, resulting in a suspension of meetings until 2020.
  • In 2020, India led efforts to revive the CSC, rebranding it to include Seychelles and Bangladesh as observer nations.
  • The revival is attributed to the increasing significance of the Indian Ocean in a changing multipolar world, where extra-regional powers vie for influence.
  • The resurgence is partly driven by heightened Chinese presence in the Indian Ocean, coupled with its Belt and Road Initiative (BRI) projects.
  • China's establishment of a base in Djibouti and control of Sri Lanka's Hambantota port underscore the strategic importance of the region.
  • The revival of CSC provides India with an opportunity to institutionalize its leadership role, shape regional security architecture, and effectively address existing and emerging threats.
  • India serves as the primary responder in the Indian Ocean Region (IOR), intervening in situations like coups and providing humanitarian and economic assistance during crises such as the COVID-19 pandemic.

Challenges faced by CSC

  • Susceptibility to shifts in domestic politics within member-states, as exemplified by the non-participation of the Maldives in the recent meeting.
  • The influence of China poses an additional challenge, with member-states, all democracies, potentially leveraging nationalist sentiments and aligning with China for domestic and external advantages in the context of the growing significance of the Indo-Pacific region.
  • Another challenge lies in the rise of sub-regionalism, indicated by the coming together of six countries in the Indian Ocean region under the CSC, showcasing a unified stance on maritime and security issues.

Way forward:

Maintain a shared strategic perspective that underscores the need to navigate the increasing influence of China in the area without obstruction. Prevent potential areas of disagreement with neighboring nations and promote cooperation within the region.

Opportune pause - Indian Science Congress (ISC)

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Context: The Indian Science Congress (ISC) 109th edition, originally to be held in  Lucknow University in 2024, has been cast in doubt after the University pulled out citing an  ongoing dispute between the Department of Science and Technology (DST) and the ISC Association. 

News:

  • The Indian Science Congress (ISC) is an annual event for scientific discussions, with PM inaugurations and Nobel Laureate participation.
  • However, recent years saw its reputation damaged as it provided a platform for pseudoscientific claims, aligning with hyper-nationalist narratives.
  • ISC's 109th edition, initially set for Lucknow University in 2024, faces uncertainty as the university withdraws due to a dispute between the Department of Science and Technology (DST) and the ISC Association, which organizes the event.
  • The association selects Lovely Professional University in Jalandhar as an alternative, leading to DST's criticism, including allegations of "financial irregularities."
  • Lovely Professional University withdraws from hosting ISC 109th edition, and the ISC Association takes legal action against the Department of Science and Technology (DST) for alleged government interference. The association seeks alternative hosts and forms a committee for venue selection. This pause in the activities put a question mark on ISC's relevance.

Indian Science Congress (ISC)

  • The Indian Science Congress (ISC) is an annual event that serves as a gathering for the country's scientific community to present and discuss research, fostering communication in the scientific field.
  • The event carries prestige, typically being inaugurated by the Prime Minister and sometimes featuring Nobel Laureates.
  • The Department of Science and Technology (DST) plays a crucial role by providing significant funding, and the ISC Association, an autonomous body under the DST, is responsible for organizing the congress.
  • In recent years, the ISC's reputation has suffered due to its association with pseudoscientific claims made by certain members of the scientific community, raising concerns about the credibility of the event.
  • The ISC itself has inherent flaws, including questionable speaker selections, a disjointed agenda, and a hectic schedule that hinders meaningful engagement.
  • Despite its drawbacks, the ISC holds significance as it attracts thousands of school and college students each year and includes talks by researchers, contributing to learning and awareness in the scientific community.

India International Science Festival

It  has been organized by the Indian government since 2015. This event is a collaborative effort involving the Ministries of Science and Technology, Earth Sciences, the Departments of Space and Atomic Energy, and Vijnana Bharati.

While some criticize post-2014 events, ISC also serves as a platform for student participation, researcher talks, and educational contributions.The Indian Science Congress (ISC) is flawed, featuring disjointed agendas and a hectic schedule. The government supports the India International Science Festival as an alternative. A critical evaluation is needed for ISC to become an independent, frequent, and coherent event reflecting the contributions of the national scientific community, with political and Nobel Laureate presence considered ornamental.

Milli-second burst detected by AstroSat

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Context: AstroSat, India’s first multi-wavelength space-based observatory, has detected bright sub-second X-ray bursts from a new and unique neutron star with ultrahigh magnetic field (magnetar), which can help understand the intriguing extreme astrophysical conditions of magnetars.

Magnetars

  • They are neutron stars having an ultrahigh magnetic field that are much stronger than the terrestrial magnetic field.
  • Simply put, the magnetic field of a magnetar is over one quadrillion time stronger than the magnetic field of Earth.
  • What powers the emission of high-energy electromagnetic radiation in them is the decay of magnetic fields in these objects.
  • Besides, magnetars display strong temporal variability, typically including a slow rotation, a rapid spin-down, bright but short bursts going on upto months-long outbursts.

X-ray bursts

They occur in low-mass X-ray binary systems where a neutron star and low-mass main sequence  star are in orbit around one another. Due to their close proximity and the extreme gravity of the neutron star, the companion star overflows its roche-lobe and hydrogen is drawn into an accretion disk around the neutron star. This hydrogen is eventually deposited on the surface of the neutron star and immediately is converted into helium due to the extreme temperatures and pressures that exist there.

AstroSat

  • It is India's inaugural dedicated multi-wavelength space observatory, representing the country's primary astronomy mission designed for the simultaneous study of celestial Sources in X-ray, optical, and UV spectral bands.

Launched on September 28, 2015, by the Indian launch vehicle PSLV from the Satish Dhawan Space Centre, Sriharikota, the observatory has a lift-off mass of 1515 kg and operates in a 650 km orbit inclined at an angle of 6 degrees to the equator.

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