Content
- Janjatiya Gaurav Divas and Tribal Empowerment: Legacy of Birsa Munda
- Flexible inflation targeting, a good balance
Janjatiya Gaurav Divas and Tribal Empowerment: Legacy of Birsa Munda
Why in News ?
- Janjatiya Gaurav Divas is observed annually on 15 November to honour Birsa Munda.
2024–25 marks 150th birth anniversary of Birsa Munda, celebrated as Janjatiya Gaurav Varsh. - PM visited Ulihatu (birthplace of Birsa Munda), reviewed tribal welfare initiatives, and highlighted decade-long reforms for tribal empowerment.
- Article reflects on tribal contributions to India’s freedom struggle and government measures for tribal development.
Relevance
- GS1 – History & Society
Tribal revolts, Munda Rebellion, Santhal Rebellion, Kol uprising.
Role of tribal communities in freedom struggle.
Tribe–state interactions and socio-cultural identity.
- GS2 – Governance
Welfare schemes for Scheduled Tribes.
Ministry of Tribal Affairs programmes.
PVTG empowerment model.
Rights-based approach: FRA, PESA, PM-JANMAN.
- GS3 – Economy & Environment
Forest governance, land rights, livelihoods.
Resource-based tribal economy.
Skill development & entrepreneurship in tribal belts.
Inclusion in digital, financial, and agricultural systems.
Practice Question
- “Tribal uprisings were not merely anti-colonial revolts, but assertions of identity, autonomy and resource rights.” Discuss with reference to movements led by Birsa Munda.(250 Words)
Basics
- Bharat’s tribal communities have historically resisted colonial exploitation, unjust land policies, and British administration.
- Tribal revolts like Ulgulan (Birsa Munda), Santhal revolt, Tantia Bhil’s struggle, Rampa rebellion etc. shaped nationalist consciousness.
- Tribal struggles were not just anti-British—they defended autonomy, land rights, forest livelihoods, dignity, and culture.
- Birsa Munda’s Ulgulan was against British land laws, missionaries, and local oppressive landlords (dikus).
- Government recognises their role through Janjatiya Gaurav Divas (2021 decision).
Key Highlights in the Article
Historical Role of Tribal Leaders
- Consistent uprisings since 18th century contributed to anti-colonial mobilisation.
- Tribal revolts united communities beyond geographical lines.
- Movements demonstrated moral strength and collective resistance.
Government Recognition Steps
- Creation of a dedicated Ministry of Tribal Affairs (1999).
- Janjatiya Gaurav Divas declared in 2021.PM-PVTG Mission launched for focused development of 75 PVTG groups.
- PM-AJAY (Adhikar, Jharkhand, Adivasi, Yuva) scheme strengthening tribal socio-economic capacity.
- PM-JANMAN scheme improving access to housing, education, drinking water, electricity, connectivity, and health.
PM’s Visit to Ulihatu (2025)
- First Prime Minister to visit the birthplace of Birsa Munda.
- Announcement of enhanced Janjatiya-centric programmes.
- Emphasis on protecting, empowering, uplifting vulnerable tribal communities (especially PVTGs).
Development Focus for Tribal Communities (Last Decade)
- Safeguarding land rights, forest rights, and livelihood ecosystems.
- Expanding modern education—Eklavya Model Schools; 740+ EMRS, special hostels.
- Boosting digital access, health infrastructure, welfare schemes.
- Improved agricultural, technological, and entrepreneurship opportunities.
- Strengthening Gram Sabhas in Scheduled Areas.
Tribal Freedom Struggle Narrative
- Birsa Munda’s Ulgulan was one of the most powerful mass movements against unjust land tenure systems.
- Sparked consciousness on land ownership, self-rule, and identity.
- Though he lived only 25 years, Birsa ignited a pan-tribal resistance movement.
Overview
Historical Importance
- Tribal uprisings formed the earliest anti-colonial resistance (pre-1857).
- Revolts were against exploitative land laws, forest restrictions, and missionary interventions.
- Tribal resistance strengthened national consciousness even before mainstream nationalism took shape.
Cultural and Identity Assertion
- Movements like Ulgulan reaffirmed tribal pride, religion (Birsait faith), and community unity.
- They safeguarded egalitarian traditions and local governance models.
Post-Independence Challenges
- Marginalisation, displacement, PVTG vulnerabilities, lack of basic services.
- Slow inclusion in mainstream economic growth.
- Issues: malnutrition, remoteness, infrastructure deficits, education gaps.
Government Responses (Past Decade Highlight)
- PM-PVTG Mission: focused development of 75 groups.
- PM-JANMAN: special strategy for vulnerable tribal communities.
- EMRS expansion: tribal children’s education transformation.
- Forest rights implementation strengthening autonomy.
- Economic inclusion: forest produce MSP, livelihood diversification, women-led SHGs.
- Governance reforms: strengthening local self-governance in Schedule V areas.
Emerging Concerns
- Balancing development with cultural preservation.
- Preventing displacement due to mining, dams, or conservation projects.
- Ensuring tribal agency in decision-making.
- Digital and health access gaps still significant.
Overall Assessment
- Recognition of tribal history is improving.
- Welfare outcomes improving in education, health, connectivity.
- Need for sustained, community-led, culturally sensitive development.
Flexible inflation targeting, a good balance
Why is this in News?
- India’s Flexible Inflation Targeting (FIT) mandate — 4% inflation target with a ±2% band — expires in March 2026.
- The RBI has released a detailed discussion paper raising fundamental questions on:
- Whether to target headline or core inflation
- What should be the acceptable inflation rate
- Whether the inflation band should be changed
Relevance
GS3 – Economy
- Monetary policy framework and institutional design (MPC, RBI Act amendments).
- Inflation–growth trade-offs, Phillips Curve debates.
- Headline vs core inflation: empirical Indian evidence, food–wage spillovers.
- Role of fiscal discipline (FRBM) in maintaining price stability.
- Link between inflation expectations, savings, investment and welfare.
- External shocks & macroeconomic stability.
GS2 – Governance & Policy
- Statutory mandate of MPC, autonomy of RBI.
- Cooperative fiscal–monetary policy coordination.
- Impact of inflation on welfare, consumption and inequality.
Practice Questions
- Why is headline CPI considered a more suitable target than core inflation in the Indian context? Support your argument with empirical and structural factors.(250 Words)
Inflation Targeting in India
- Adopted in 2016 via amendments to the RBI Act.
- Target: 4% CPI inflation, tolerance band 2–6%.
- Mandate given to Monetary Policy Committee (MPC).
- Core rationale:
- Control of inflation protects poor households
- Reduces uncertainty
- Improves savings and investment outcomes
- Anchors expectations
Core Arguments of the Article
Why Inflation Control Is Essential ?
- High inflation functions as a regressive consumption tax.
- Disproportionately hurts:
- Poor households
- Fixed-income households
- Unhedged savers
- High and volatile inflation:
- Deters savings
- Diverts investment
- Damages long-term growth
Should India Target Headline or Core Inflation?
Arguments for Headline Inflation Targeting
- Headline reflects the actual inflation experience of households, especially the poor.
- Food inflation is not purely supply-driven; it is influenced by:
- Liquidity conditions
- Monetary expansion
- Wage spillovers
- Empirical Indian evidence:
- Food inflation has second-round effects on core inflation (wages, services, non-food items).
- Thus, controlling food inflation becomes part of general price stability.
Key Theoretical data
- As per Milton Friedman (1963 Mumbai lecture):
- Prices cannot rise without money supply expanding.
- Price rises in selected items (e.g., food) lead to general inflation only when total liquidity expands.
Conclusion
- For India’s structure, headline inflation remains the correct target — not core.
What Should Be the Acceptable Level of Inflation for India?
Historical Reference
- Chakravarty Committee (1985):
- Acceptable inflation = 4%.
- Provided limited theoretical justification.
Contemporary Evidence
- Phillips Curve trade-off has collapsed globally and in India.
- Long-run: no trade-off between growth and inflation (Friedman’s expectations-augmented framework).
- Short-run: Mild inflation may support growth, but excessive inflation hurts growth.
New Data-Based Finding
- Using data from 1991–2024 (excluding COVID shock):
- Quadratic growth–inflation curve shows inflection at 3.98%.
- Implies:
- Optimal inflation ≈ 4%,
- Inflation above 6% sharply reduces growth.
Forward-Looking Consideration (2026–2031)
- Preliminary RBI simulations suggest:
- Optimal inflation below 4% for coming decade.
- Limited justification to increase the target.
Should India Change the Current Inflation Band?
Current Band: 2% to 6%
- Has provided the right flexibility for shocks.
- No reason to widen the band.
Critical Missing Element
- Framework does not specify:
- How long RBI can stay close to the upper limit (6%)
- Staying persistently near 6% undermines credibility and violates the spirit of FIT.
Growth and Inflation Data
- Growth declines rapidly once inflation exceeds 6%.
Dependence on Fiscal Policy
- History:
- 1970s–80s inflation mainly due to monetisation of fiscal deficit.
- Post-reforms:
- End of adhoc treasury bills (1994)
- FRBM Act (2003)
- FIT (2016)
Internal Consistency
- FRBM discipline and FIT must operate together.
- Fiscal slippage → inflation slippage → FIT failure.
Overview
Why Headline CPI Must Stay as India’s Target ?
- Indian consumption basket heavily food-weighted.
- Food–wage–core transmission is strong.
- Excluding food inflation would provide wrong policy signals.
- Headline inflation better reflects:
- Cost-of-living pressures
- Distributional impacts
- Monetary–fiscal interaction effects
Acceptable Inflation = 4%
- Historical committee recommendation + new empirical validation.
- India’s growth–inflation relationship is non-linear, with:
- Growth-maximising inflation ≈ 4%
- Rapid decline beyond 6%
- Raising target would:
- Unanchor expectations
- Increase cost of government borrowing
- Hurt real incomes
- Weaken RBI credibility
Why FIT Band Should Not Be Changed ?
- Current ±2% gives:
- Room for supply shocks
- Room for cyclical flexibility
- Tightening the band → unnecessary volatility in interest rates
- Widening the band → reduces accountability
- Needed:
- Explicit guidance on duration near upper tolerance limit.
Final Consolidated Takeaways
- Target variable: Headline CPI (not core).
- Optimal target: 4% inflation, reaffirmed by post-1991 data.
- Tolerance band: ±2% should continue.
- Policy coordination: FIT must operate alongside FRBM discipline.
- Macro-risk: Staying at 6% inflation for long is growth-negative and credibility-damaging.
- Forward view: For 2026–2031, optimal inflation may be under 4%, but certainly not above.
