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GS Paper: GS3

  • Why Greenland’s crystal blue lakes have turned brown?

    Why in the News?

    A new study has revealed that over 7,500 lakes in western Greenland have turned brown, suffered water quality deterioration, and started emitting carbon due to extreme weather events in 2022.

    About Greenland and Its Lakes

    • Greenland, the world’s largest island, is covered by a massive ice sheet that holds nearly 8% of the world’s freshwater.
    • The island is home to thousands of glacial-fed lakes, which are crystal blue due to their pristine water quality and low organic content.
    • These lakes play a crucial role in providing drinking water, supporting biodiversity, and storing atmospheric carbon by acting as natural carbon sinks.

    What are the reasons?

    • Extreme Weather in 2022: Greenland saw record-breaking heatwaves and heavy rainfall instead of the usual snowfall.
    • Permafrost Thawing: Rising temperatures melted permafrost, releasing large amounts of organic carbon, iron, and other minerals into the lakes.
    • Atmospheric Rivers: These long, narrow streams of water vapor in the sky caused intense precipitation, leading to large-scale runoff of organic material and sediments into the lakes.
    • Loss of Light Penetration: Increased sedimentation turned the lakes murky brown, reducing sunlight penetration and affecting phytoplankton, which play a key role in carbon absorption.

    Why this Study is important?

    • The study found that changes in the lakes occurred within months instead of centuries, signaling an unprecedented climate impact.
    • Once natural carbon absorbers, the lakes are now releasing 350% more carbon dioxide, accelerating global warming.
    • The lakes, which supply drinking water, now contain higher levels of organic pollutants, affecting both humans and aquatic ecosystems.
    • Studies suggest atmospheric rivers will become 50–290% more frequent by the end of the century, leading to widespread changes in other freshwater ecosystems worldwide.
    • The study adds to growing evidence that Earth’s natural carbon sinks are failing, posing a major challenge to climate mitigation efforts.

    PYQ:

    [2011] The surface of a lake is frozen in severe winter, but the water at its bottom is still liquid. What is the reason?

    (a) Ice is a bad conductor of heat

    (b) Since the surface of the lake is at the same temperature as the air, no heat is lost

    (c) The density of water is maximum at 4 °C

    (d) None of the statements A, B and C given above is correct.

  • Labrys portucalensis F11

    Why in the News?

    A research team has discovered that Labrys portucalensis F11, a strain of aerobic bacteria from the Xanthobacteraceae family, can break down and transform multiple types of per- and polyfluoroalkyl substances (PFAS), a group of persistent environmental pollutants.

    About Labrys portucalensis F11

    • It is a type of bacteria that can break down harmful chemicals known as PFAS (Per- and Polyfluoroalkyl Substances).
    • It was first found in contaminated soil at an industrial site in Portugal.
    • Scientists have discovered that it can remove fluorine from certain chemical pollutants, making them less toxic.
    • PFAS are known as “forever chemicals” because they do not break down easily in nature.
    • Labrys portucalensis F11 can digest PFAS, helping to clean up polluted soil and water.

    How does it work?

    • It attacks the strong chemical bonds in PFAS, removing fluorine atoms.
    • It uses carbon from PFAS as food, helping it grow while reducing pollution.
    • It survives in oxygen-rich environments, making it ideal for cleaning up industrial waste sites.
    • In 100 days, it broke down 90% of PFOS, one of the most harmful PFAS chemicals.
    • Unlike most bacteria, it can also break down PFAS leftovers, making them even safer.

    Back2Basics: Per- and Polyfluoroalkyl Substances (PFAS)

    • Per- and Polyfluoroalkyl Substances (PFAS) are a group of synthetic chemicals widely used in industrial and consumer products for their waterproof, grease-resistant, and non-stick properties.
    • PFAS are commonly found in non-stick cookware (Teflon), waterproof clothing, food packaging, fire-fighting foams, and industrial applications.
    • These chemicals are known for their high resistance to heat, water, and oil, making them useful but also environmentally persistent.
    • Common Uses:
      • Non-stick cookware (Teflon), waterproof fabrics, stain-resistant coatings, and fire-fighting foams.
      • Industrial applications such as metal plating, food packaging, and electronics manufacturing.
    • Environmental and Health Concerns:
      • PFAS are often called “forever chemicals” because they do not naturally degrade and persist in soil, water, and living organisms.
      • Exposure to PFAS has been linked to cancer, liver damage, immune system disruption, and hormonal imbalances.
    • Regulatory Actions:
      • In 2023, the U.S. Environmental Protection Agency (EPA) designated PFOS (a type of PFAS) as a hazardous substance, requiring strict monitoring and clean-up efforts.
      • Governments worldwide are phasing out PFAS use and funding research into bioremediation technologies like the F11 bacteria-based clean-up approach.
      • In 2020, the Bureau of Indian Standards (BIS) adopted international criteria for sampling and testing certain PFAS compounds, such as perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS).
        • However, comprehensive policies to regulate or ban PFAS are still lacking.

     

    PYQ:

    [2013] Which of the following can be found as pollutants in the drinking water in some parts of India?

    1. Arsenic
    2. Sorbitol
    3. Fluoride
    4. Formaldehyde
    5. Uranium

    Select the correct answer using the codes given below:

    (a) 1 and 3 only
    (b) 2, 4 and 5 only
    (c) 1, 3 and 5 only
    (d) 1, 2, 3, 4 and 5

  • Organophosphate Poisoning in J&K

    Why in the News?

    A mysterious illness in Jammu & Kashmir has caused 17 deaths, with doctors suspecting organophosphate poisoning from pesticides as the possible cause.

    What are Organophosphates?

    • Organophosphates (OPs) are a class of chemical compounds primarily used as pesticides and insecticides in agriculture.
    • They work by disrupting the nervous system by inhibiting the enzyme acetylcholinesterase (AChE), leading to excessive nerve stimulation.
    • It is commonly used in agriculture, household pest control, and chemical warfare agents (e.g., nerve gases like Sarin).
    • It is found in pesticides such as malathion, chlorpyrifos, and diazinon.
    • Effects of OP poisoning:
      • Acute Symptoms: Excessive sweating, nausea, vomiting, diarrhea, muscle twitching, breathing difficulty, seizures, and coma.
      • Chronic Effects: Neurological disorders, memory loss, muscle weakness, and reproductive toxicity.

    Treatment for Organophosphate Poisoning

    • Organophosphate poisoning requires immediate medical attention to prevent fatal complications.
      • Decontamination: Remove contaminated clothing, wash exposed skin, and use activated charcoal if ingested.
    • Medical Treatment:
      • Atropine: Blocks excess nerve stimulation.
      • Pralidoxime (2-PAM): Restores enzyme function.
      • Oxygen therapy and ventilator support if needed.
      • Supportive Care: IV fluids, anti-seizure medications, and hospitalization in severe cases.

  • Why meteorologists are comparing Storm Eowyn to a bomb?

    Why in the News?

    Storm Éowyn has hit the British Isles with very strong winds, especially in Ireland and Scotland.

    What are the meteorological characteristics of Storm Eowyn?

    • Explosive Cyclogenesis: Storm Éowyn qualifies as a “bomb cyclone,” with air pressure at its center dropping 50 millibars within 24 hours, significantly exceeding the 24-millibar threshold for explosive cyclogenesis. This rapid deepening is a hallmark of severe winter storms in the region.
    • Wind Speeds: The storm produced wind gusts exceeding 100 mph, with a record gust of 114 mph reported at Mace Head on Ireland’s west coast. The Met Office issued red warnings for widespread gusts of 80-90 mph, particularly affecting Northern Ireland and central and southern Scotland.
    • Jet Stream Influence: A strong jet stream, with winds exceeding 200 mph, played a crucial role in the storm’s development. The temperature contrast between cold air from the eastern US and warmer air over the North Atlantic contributed to this intensity.

    What impacts it had on affected regions and what are the expected consequences?

    • Power Outages and Damage: Nearly one million properties across the British Isles experienced power outages due to downed trees and damaged infrastructure. Restoration efforts are expected to take several days, with some areas potentially facing up to ten days without power.
    • Transport Disruptions: The storm caused significant disruptions to road and rail services, with many routes blocked or cancelled due to hazardous conditions. Emergency services have been deployed to manage the aftermath.
    • Casualties: Tragically, at least one fatality was reported in Ireland when a tree fell on a vehicle due to the high winds. The overall impact of the storm has raised concerns about safety and emergency preparedness in affected regions.

    How does Storm Eowyn fit into broader climate change trends and patterns of extreme weather events?

    • Climate Change Considerations: While Storm Éowyn’s intensity raises questions about climate change’s role in extreme weather events, current research has not conclusively linked specific storm intensities or frequencies to climate change.
      • The Intergovernmental Panel on Climate Change (IPCC) reports low confidence in observed trends related to extratropical storms over the last century.
    • Future Storm Patterns: There are indications that future winter storms may become more frequent and clustered, leading to increased overall impacts. Additionally, as global temperatures rise, storms may exhibit more extreme wind speeds and rainfall due to a warmer atmosphere’s capacity to hold more moisture.
    • Potential for Sting Jets: There is speculation that Storm Éowyn may have developed “sting jets,” which can produce localized but extremely destructive winds. While their occurrence is difficult to predict, studies suggest that such phenomena may increase with future cyclones as atmospheric conditions evolve.

    Way forward: 

    • Strengthening Infrastructure & Emergency Preparedness – Governments should invest in resilient power grids, reinforced transportation networks, and improved early warning systems to mitigate the impact of extreme storms.
    • Climate Adaptation & Policy Measures – Policymakers should integrate climate resilience into urban planning, enforce stricter building codes, and invest in sustainable land management to reduce vulnerabilities.

    Mains PYQ:

    Q Discuss the concept of air mass and explain its role in macro-climatic changes.(UPSC IAS/2016)

  • What is Guillain-Barre Syndrome (GBS)?

    Why in the News?

    In an alarming move, the Guillain-Barre Syndrome (GBS) cases rise to 110 in Pune.

    What is Guillain-Barré Syndrome (GBS)?

    • GBS is an autoimmune disorder where the immune system attacks peripheral nerves, causing muscle weakness and, in severe cases, paralysis.
    • It is rare, affecting 1–2 per 100,000 people annually.
    • It is more common in adults and males.
    • It is often triggered by viral or bacterial infections, especially Campylobacter jejuni (a cause of gastroenteritis), influenza, Epstein-Barr virus, Zika virus, or, in rare cases, vaccinations.
    • Its Symptoms: 
      • Early signs: Tingling, weakness in legs spreading to the upper body, pins-and-needles sensation, back pain.
      • Severe cases: Paralysis, breathing difficulties, loss of speech, vision problems.
      • Complications: Can affect the autonomic nervous system, leading to irregular heartbeat, blood pressure fluctuations, and potential respiratory failure.

    Treatment and Recovery:

    • No definitive cure, but treatments include:
      • Plasma Exchange (Plasmapheresis): Removes harmful antibodies attacking nerves.
      • Intravenous Immunoglobulin (IVIG) Therapy: Injects healthy antibodies to counteract immune attacks.
    • Supportive care: Some patients require ventilator support, physical therapy, and months to years of rehabilitation.

    PYQ:

    [2022] In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements:

    1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
    2. Sputnik V vaccine is manufactured using vector-based platform.
    3. COVAXIN is an inactivated pathogen-based vaccine.

    Which of the statements given above are correct?

    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

  • Rythu Bharosa Scheme

    Why in the News?

    The Telangana government has started distributing funds under the Rythu Bharosa Scheme, also known as the Farmer’s Investment Support Scheme (FISS).

    About the Rythu Bharosa Scheme:

    • The Rythu Bharosa Scheme, also known as the Farmer’s Investment Support Scheme (FISS), was launched by the Telangana government in 2018 to provide direct financial assistance to farmers.
    • It is the first direct investment support scheme in India, where cash is transferred directly to farmers before each crop season to help them with agricultural expenses.
    • Objective: To reduce financial burden, improve agricultural productivity, and prevent farmers from falling into debt traps due to high input costs.
    • Provisions:
      • Under the scheme, every farmer receives ₹5,000 per acre per crop season, ensuring ₹10,000 per acre annually for two crop seasons.
      • The financial assistance is provided before the sowing season, allowing farmers to plan their investments efficiently.
      • There is no limit on the size of landholdings, meaning both small and large farmers can benefit.
    • Criteria:
      • The scheme is available only to resident farmers of Telangana who own agricultural land in the state.
      • Scheduled Tribe (ST) farmers cultivating land with Record of Forest Rights (ROFR) documents are eligible for assistance.
      • Tenant farmers, commercial farmers, and those farming under contractual agreements are not eligible to receive benefits under this scheme.
      • The funds are disbursed through bank bearer cheques under the supervision of Agriculture Extension Officers to ensure transparent distribution.

    PYQ:

    [2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

    1. Working capital for maintenance of farm assets
    2. Purchase of combine harvesters, tractors and mini trucks
    3. Consumption requirements of farm households
    4. Post-harvest expenses
    5. Construction of family house and setting up of village cold storage facility

    Select the correct answer using the code given below:

    (a) 1, 2 and 5 only
    (b) 1, 3 and 4 only
    (c) 2, 3, 4 and 5 only
    (d) 1, 2, 3, 4 and 5

  • [28th January 2025] The Hindu Op-ed: Getting drunk, on homoeopathy

    PYQ Relevance:

    Q.) “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse. (CS Mains  2021)

    Q.) Appropriate local community-level healthcare intervention is a prerequisite to achieving ‘Health for All’ in India. Explain. (CS Mains 2018)

     

    Mentor’s Comment: UPSC Mains has always focused on traditional knowledge of medicine (2019) and the health sector (2020).

    A recent Supreme Court ruling in the case of Bhagwati Medical Hall vs Central Drugs Standard Control Organization & Ors. has highlighted the difficult challenge faced by state governments in controlling the public health risk caused by alcoholic tinctures sold as homoeopathic remedies in India. Despite the Union Government’s efforts to address the issue, the strong influence of the homoeopathic industry has often led to legal battles that prevent real progress.

    Today’s editorial discusses the difficult challenge state governments face in managing the health risks from alcoholic tinctures sold as homoeopathic medicines in India. This information can be useful for supporting your argument in GS Paper 1 and 2 answers.

    _

    Let’s learn!

    Why in the News?

    Alcoholic tinctures sold as homoeopathic remedies in India pose a serious risk to public health.

     

    What are the recent changes in homoeopathic tinctures? 

    • Introduction of Rule 106B: Limits alcohol content in homoeopathic tinctures to 12% and restricts retail sale to 30 ml bottles, with larger bottles (up to 100 ml) allowed only for hospitals.
    • Taxation Post-GST: Alcohol for medicinal purposes is taxed at 18%, significantly lower than State taxes on alcoholic beverages, making tinctures a cheaper alternative.
    • Supreme Court’s Intervention: In the Bhagwati Medical Hall case, the SC upheld that only the Union government can regulate homoeopathic tinctures, emphasizing stricter enforcement to address public health risks.

    What are the implications of the recent regulatory changes in homoeopathy?

    • Regulatory Complexity and Taxation Issues: The regulatory architecture for homoeopathic alcoholic tinctures is highly complex, with overlapping jurisdictions between the Union and States.
      • Post-GST, alcohol for medicinal purposes is taxed at 18%, significantly lower than State taxes on alcoholic beverages, making homoeopathic tinctures a cheaper alternative for consumers.
      • States cannot regulate these tinctures without presidential assent, leading to a lack of quality control and public health oversight.
    • Public Health Hazards: Homoeopathic tinctures containing 12% alcohol are often consumed as substitutes for alcoholic beverages, leading to alcohol-related illnesses such as alcoholic hepatitis.
      • For example: States like Gujarat and Bihar, where alcohol is prohibited, have reported deaths due to the consumption of spurious homoeopathic tinctures..
    • Industry Lawfare and Regulatory Delays: The homoeopathic industry has consistently challenged regulations, such as Rule 106B of the Drugs and Cosmetics Rules, 1945, through prolonged litigation.
      • The Union government’s decision to pursue litigation instead of laying Rule 106B before Parliament has further delayed regulatory enforcement.

    How does the public perception of homoeopathy impact healthcare choices?

    • Misleading Perception of Safety: Many consumers perceive homoeopathic remedies as safe and natural, unaware of the high alcohol content in tinctures.
      • This perception leads to the misuse of homoeopathic tinctures as substitutes for alcoholic beverages, especially in prohibition States like Bihar and Gujarat.
    • Lack of Awareness: Poorly informed consumers may consume homoeopathic tinctures daily, believing they are curing ailments, while unknowingly risking alcohol-related diseases.
      • The absence of clear labelling and warnings exacerbates the problem, as consumers are not fully aware of the health risks associated with these products.
    • Impact on Healthcare Choices: The availability of cheap, alcohol-based homoeopathic tinctures influences healthcare choices, particularly among low-income groups seeking affordable alternatives to conventional medicine.
      • This reliance on homoeopathy can delay or prevent access to evidence-based medical treatments, worsening health outcomes.

    What role should evidence-based research play in validating homoeopathic practices? (Way forward)

    • Need for Regulatory Reforms: Research should inform regulatory decisions, such as whether alcohol should be permitted in homoeopathic and ayurvedic products.
      • Countries like the U.S. and U.K. are considering cancer warnings on alcoholic beverages, highlighting the need for similar scrutiny of alcohol-based medicinal products in India.
    • Public Health Policy: Evidence-based research can guide public health policies, ensuring that regulations prioritize consumer safety over industry interests.
      • Research should also address the misuse of homoeopathic tinctures as substitutes for alcoholic beverages, particularly in prohibition States.

  • The Union Budget as a turning point for climate action

    Why in the News?

    Everyone will be watching Finance Minister Nirmala Sitharaman on February 1 as she presents the FY26 Budget, which needs to focus on climate issues and help India reach its Net-Zero goal by 2030.

    How will the proposed climate finance taxonomy influence investment in sustainable projects?

    • Standardization and Clarity: The proposed climate finance taxonomy will standardize definitions of green finance, providing clarity and reducing ambiguity for investors. This will help in distinguishing genuinely sustainable projects from those that are not, thereby building investor confidence.
    A green finance taxonomy is a classification system that defines which activities, investments, or projects are considered “green” or environmentally sustainable.
    • Increased Investment: By standardizing green finance definitions, the taxonomy can attract a significant portion of the ₹162.5 trillion ($2.5 trillion) needed to achieve India’s Nationally Determined Contributions (NDCs) by 2030. This is crucial for scaling up investments in sustainable projects.
    • Market Readiness: The taxonomy will necessitate the development of institutional and technical infrastructure, including market readiness programs, verification systems, and capacity building of financial institutions. This will create a robust ecosystem for green investments.
    • Differential Tax Treatment: The Budget could introduce differential tax treatment for investments aligned with the taxonomy, making green investments more attractive compared to conventional ones.

    What specific measures are needed to incentivize green investments in the upcoming budget?

    • Expanding PLI Schemes for Solar Module Supply Chain: India’s domestic solar module manufacturing capacity stands at 18-20 GW, while the annual demand is 30-35 GW. Imported solar panels are 65% cheaper than domestically produced ones.
      • So, need to expand the scope of PLI schemes can enhance domestic capacity and reduce dependency on imports.
    • Public-Private Partnerships for Railway Renewable Energy: Indian Railways has 51,000 hectares of land available for renewable energy projects, yet only 142 MW of solar capacity has been installed so far, against a potential of 5 GW. Public-private partnerships can unlock this potential and align with the Railways’ decarbonization goals.
    • Establishing a Climate Action Fund for CBAM Compliance: India’s exports of CBAM-covered products to the EU amount to $8.22 billion annually. MSMEs, which contribute 30% of GDP and 45% of exports, often lack resources for decarbonization. A dedicated Climate Action Fund could support MSMEs in meeting compliance requirements and maintaining competitiveness.
    • Fiscal Allocations for the RESCO Model: Only 6.34 lakh (4.37%) of 1.45 crore registrations under the PM Surya Ghar Muft Bijlee Yojana have been completed. Additionally, 60% of Indian households find rooftop solar installations unaffordable due to upfront costs.
      • The RESCO model can help by enabling financing solutions to bridge this affordability gap.
    • Tax Deductions and Depreciation Benefits for Circular Economy: India generates 62 million tonnes of waste annually, with only 30% being recycled. Transitioning to a circular economy could contribute ₹40 lakh crore ($624 billion) annually by 2050.
      • Tax incentives and accelerated depreciation benefits can encourage private sector participation in recycling and resource efficiency.

    What are the steps taken by the Government of India? 

    • National Action Plan on Climate Change (NAPCC): Launched in 2008, this comprehensive framework includes eight missions aimed at addressing climate change through renewable energy promotion, enhanced energy efficiency, sustainable habitat development, and more.
      • Key missions include the National Solar Mission and the Green India Mission, which focus on increasing solar energy usage and enhancing forest cover, respectively.
    • Commitment to Renewable Energy: India aims to achieve 500 GW of non-fossil fuel energy capacity by 2030 and has pledged to reduce total projected carbon emissions by one billion tonnes.
    • Adaptation and Resilience Initiatives: The government has established the National Adaptation Fund on Climate Change (NAFCC) to support projects that enhance resilience against climate impacts.
      • On the other hand, the State Action Plan on Climate Change (SAPCC) aligns with NAPCC objectives, focusing on sector-specific adaptations in agriculture, water management, and biodiversity.

    How can India ensure accountability and transparency in its climate financing efforts? (Way forward)

    • Sovereign Green Bond Framework: Establish a sovereign green bond framework specifically for financing circular economy infrastructure, ensuring that funds are allocated transparently and used for their intended purposes.
    • Verification Systems: Implement robust verification systems to ensure that projects funded through green finance taxonomy are genuinely sustainable and meet the required environmental standards.
    • Capacity Building: Invest in capacity building of financial institutions to effectively implement the climate finance taxonomy, including training programs and technical support.
    • Government Expenditure Classification: Commit to classifying government expenditure according to green criteria, ensuring that public funds are directed towards sustainable projects.
    • Regular Reporting and Audits: Mandate regular reporting and audits of climate-related expenditures and projects to ensure accountability and transparency. This will help in tracking progress and making necessary adjustments to policies and allocations.

    Mains PYQ:

    Q  ‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)

  • Indore and Udaipur earn global recognition for ‘Wetland Conservation’ Efforts

    Why in the News?

    Prime Minister recently commended Indore and Udaipur for earning a spot in the prestigious list of 31 Wetland Accredited Cities (WCA) worldwide under the Ramsar Convention on Wetlands.

    Key Highlights of Indore and Udaipur

    • Indore:
      • Known as India’s cleanest city and recipient of Smart City 2023 Award.
      • Sirpur Lake, a Ramsar site, supports large water bird congregations and is being developed as a bird sanctuary.
      • Over 200 wetland mitras are actively involved in conservation efforts, particularly protecting the Sarus Crane.
    • Udaipur:
      • Famous for its picturesque lakes, including Pichola, Fateh Sagar, Rang Sagar, Swaroop Sagar, and Doodh Talai.
      • These wetlands are vital for maintaining the city’s microclimate and providing a buffer against extreme weather events.

    About Wetland City Accreditation (WCA)

    • It was introduced during COP 12 (2015) of the Ramsar Convention to recognize cities that take exceptional steps in wetland conservation and sustainable management.
    • Objective: To promote the conservation and wise use of urban and peri-urban wetlands while fostering socio-economic benefits for local populations.
    • The accreditation is valid for 6 years.

    Criteria for WCA:

    Cities must meet specific standards set by the Ramsar Convention, including:

    • Presence of one or more Ramsar sites or significant wetlands.
    • Implementation of wetland conservation measures and restoration initiatives.
    • Integration of wetlands into land-use planning.
    • Raising public awareness about the importance of wetlands.
    • Establishing local committees with expertise in wetland management.
    • Having strong laws and policies to prevent wetland degradation.

    India’s Efforts in Wetland Conservation

    • India became a Ramsar Convention member in 1982, with 85 Ramsar sites covering 13,58,068 hectares (10% of India’s wetland area).
    • India initially designated 26 Ramsar sites (1982–2013) and added 59 more since 2014, reflecting a growing commitment to wetland preservation.
    • Tamil Nadu leads with 18 Ramsar sites, followed by Uttar Pradesh (10 sites).
    • Global Leadership Wetland Conservation:
      • UK has the highest number of Ramsar sites (175), followed by Mexico (142).
      • Bolivia has the largest area under Ramsar protection (148,000 sq. km).

    Interesting Facts about Indian Wetlands:

    • India’s wetlands cover 1,52,600 sq. km, constituting 4.63% of its geographical area (ISRO data).
    • Gujarat has the largest wetland area, followed by Andhra Pradesh, Uttar Pradesh, and West Bengal.
    • Ramsar Wetlands of International Importance:
      • Examples include Chilika Lake (Odisha), Sundarbans (West Bengal), and Keoladeo National Park (Rajasthan).

     

    PYQ:

    [2014] If a wetland of international importance is brought under the ‘Montreux Record’, what does it imply?

    (a) Changes in ecological character have occurred, are occurring or are likely to occur in the wetland as a result of human interference.
    (b) The country in which the wetland is located should enact a law to prohibit any human activity within five kilometres from the edge of the wetland.
    (c) The survival of the wetland depends on the cultural practices and traditions of certain communities living in its vicinity and therefore the cultural diversity therein should not be destroyed.
    (d) It is given the status of ‘World Heritage Site.’

  • SEBI proposes sachetization of mutual funds to boost financial inclusion

    Why in the News?

    SEBI is collaborating with the mutual fund industry to find ways to make monthly SIPs of just Rs 250 possible, aiming to encourage more people from lower-income groups to invest in mutual funds.

    What is Sachetisation?

    • Sachetisation refers to offering products in small, affordable units, making them accessible to a broader consumer base, especially those in price-sensitive segments.
    • The term originated from the FMCG (Fast Moving Consumer Goods) sector, where products like shampoos were made available in small sachets at low prices to cater to low-income consumers.
    • SEBI is now proposing a similar approach for mutual funds, allowing small-ticket investments through SIPs (Systematic Investment Plans) with low monthly amounts (such as Rs 250).

    What are the significances of Sachetisation?

    • Affordable Financial Products: Just as small sachets of consumer goods made them accessible to lower-income groups, small-ticket SIPs in mutual funds can make investment opportunities available to a larger section of the population, particularly those who may not have the financial capacity to invest larger amounts.
    • Promoting Financial Empowerment: By lowering the entry barrier for mutual fund investments, sachetisation can help empower underserved communities and individuals by enabling them to participate in the growing financial markets and benefit from the potential returns.
    • Expanding Reach: This approach would encourage mutual fund companies to expand their reach to remote locations, helping them penetrate rural and low-income markets, and promote a wider culture of saving and investing.
    • Financial Inclusion for the Bottom of the Pyramid: The primary target of sachetisation in mutual funds is low-income groups that have limited access to traditional investment products. By offering small, regular investments, SEBI aims to promote financial inclusion at the grassroots level.

    How does it work?

    • SEBI has proposed introducing small ticket SIPs at Rs 250 per month, which would allow new investors from low-income groups to participate in mutual funds without the burden of higher minimum investment requirements. This contrasts with existing schemes that often require a minimum SIP of Rs 500 or more.
    • Investors can commit to a small ticket SIP for a duration of five years (60 installments), although they have the flexibility to withdraw or stop their investments without restrictions if needed. This structure encourages consistent investment while providing an exit option for investors.
    • To facilitate the success of small ticket SIPs, SEBI plans to implement discounted rates for intermediaries and reimburse certain costs from the Investor Education and Awareness Fund. This will help asset management companies (AMCs) break even more quickly on their investments in these small ticket offerings.
    • The sachetised SIPs will be available under specific mutual fund schemes, excluding high-risk options like small-cap and mid-cap equity schemes, which are deemed unsuitable for new investors from lower-income backgrounds. This targeted approach aims to safeguard these investors while still encouraging their entry into the market.
    • To further promote financial inclusion, SEBI proposes incentives for distributors who successfully guide investors through 24 instalments of the small ticket SIP, thereby enhancing participation and support for new investors in mutual funds.

    Conclusion: The strategy could result in a significant increase in domestic investor participation, contributing to the resilience of India’s equity market and fostering long-term financial stability.

    Mains PYQ:

    Q Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (UPSC IAS/2018)