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  • Netherlands becomes India’s 3rd Largest Export Destination in 2023-24

    PC: LiveMinit

    Why in the News?

    During fiscal year 2023-24, the Netherlands emerged as India’s third-largest export market, with a trade surplus expanding to $17.4 billion.

    India’s Trade with the Netherlands

    • Key Export Commodities: Notable export items to the Netherlands include petroleum products ($14.29 billion), electrical goods, chemicals, and pharmaceuticals, showcasing robust growth in these sectors.
    • Continual Expansion: India’s exports to the Netherlands have steadily risen by approximately 3.5% to reach $22.36 billion in 2023-24, illustrating sustained growth momentum.
    • Mutual Investment: The Netherlands is a significant investor in India, with foreign direct investment (FDI) amounting to about $5 billion during the last fiscal.
    • Corporate Presence: Over 200 Dutch companies, including industry giants like Philips, Akzo Nobel, and KLM, operate in India, while Indian firms like TCS, HCL, and Sun Pharmaceuticals have a substantial presence in the Netherlands.

    Shift in Trade Dynamics

    • Outpacing Major Destinations: The Netherlands has surpassed traditional trade partners such as the U.K., Hong Kong, Bangladesh, and Germany in terms of India’s export focus.
    • Long-term Growth: Export figures have shown consistent growth since 2000-01 when India’s exports to the Netherlands were a mere $880 million.

    Significance: Gateway to Europe

    • Strategic Positioning: The Netherlands’ efficient ports and extensive connectivity with the EU via roads, railways, and waterways have positioned it as a vital gateway to the European market.
    • Strong Ties: Diplomatic relations between India and the Netherlands, established in 1947, have evolved into robust political, economic, and commercial partnerships.

    India’s Trade Dynamics

    Export Figures:

    • Forecasted to reach approximately US$776.68 billion in FY 2023–24.
    • Slightly surpassed the US$776.40 billion recorded in the previous fiscal year.
    • Concluded with the highest monthly merchandise exports of US$41.68 billion in March 2024.

    Import Figures:

    • Total goods imports decreased by 5.66 percent to US$675.44 billion.

    Global Merchandise Export Ranking:

    • India advanced from 19th to 17th place.
    • Marginal increase in share from 1.70 percent in 2014 to 1.82 percent in 2023.
    • Exported to 115 countries out of a total of 238 destinations during FY 2023-24.

    Key Export Markets:

    • Include the US, UAE, Netherlands, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany, and Italy.
    • Represent 46.5 percent of India’s export portfolio.

    Diversification Strategy:

    • Focus on expanding beyond traditional sectors like iron ore and agricultural commodities.
    • Target sectors include electronics, pharmaceuticals, engineering products, and food items.
    • Plan to introduce goods such as alcoholic beverages, prepared meals, confectioneries, jackfruit, and bananas.
    • Emphasis on market research and analysis for product customization.

    Trade Partners:

    • China emerged as India’s largest trading partner, surpassing the US.
    • Bilateral trade with China totalled US$118.4 billion in FY 2023-24.
    • Bilateral trade with the US amounted to US$118.3 billion in the same period.
    • India’s exports to China increased by 8.7 percent in FY24, driven by various sectors.
    • Imports from China rose moderately, totalling US$101.7 billion.

    (Source of Data: Ministry of Commerce and Industry, Department of Commerce)

    PYQ:

    [2013] The balance of payments of a country is a systematic record of:

    (a) All import and export transactions of a country during a given period of time, normally a year.

    (b) Goods exported from a country during a year.

    (c) Economic transaction between the governments of one country to another.

    (d) Capital movements from one country to another.

     

  • A call to action for a sustainable future  

    Why in the news?

    World Environment Day (WED) on June 5th is a global event where people come together to celebrate the importance of environmental conservation and sustainability, emphasizing the urgent need to tackle environmental challenges.

    World Environment Day 2024 Theme

    Theme: “Land Restoration, Desertification, and Drought Resilience”

    • Highlighting Critical Issues: Focuses on the significant threats posed by land degradation and desertification, which impact food security, biodiversity, and climate change. For example, the United Nations estimate that about 30% of land is degraded worldwide
    • The urgency for Action: Emphasizes the need for immediate actions in the face of the triple planetary crisis: Climate Change, Nature and Biodiversity Loss, and Pollution and Waste.
    • Shared Responsibility: Stresses collective action and individual responsibility in restoring ecosystems, urging everyone to contribute to solutions.
    • Empowering Youth: Encourages young people to lead the change towards a sustainable future with the #GenerationRestoration slogan.
    • Alignment with Global Goals: Supports the UN Decade on Ecosystem Restoration (2021-2030) and the Sustainable Development Goals, promoting a comprehensive approach to environmental protection.

    India’s Ambitious Renewable Targets

    • Renewable Energy Goals: India aims to achieve 450 GW of renewable energy capacity by 2030, emphasizing solar and wind energy.
    • Solar Energy Initiatives: Major solar projects, including the world’s largest solar park in Karnataka and the International Solar Alliance (ISA), aim to promote solar energy adoption.
    • Wind Energy: India is one of the world’s largest producers of wind energy, with significant wind farms in Tamil Nadu and Gujarat.
    • Policy Support: The government has introduced various policies and incentives to encourage investment in renewable energy, including subsidies, tax benefits, and easier land acquisition processes.
    • Sustainable Development: These initiatives align with India’s commitments under the Paris Agreement to reduce carbon emissions and promote sustainable development.

    How COVID-19 Shows Us the Way Forward

    • Environmental Awareness: The pandemic has heightened awareness of the interconnectedness between human health and the environment, highlighting the importance of preserving natural habitats to prevent zoonotic diseases.
    • Reduction in Pollution: Lockdowns and reduced industrial activities during the pandemic led to significant decreases in air and water pollution, demonstrating the impact of human activities on the environment.
    • Green Recovery: The concept of building back better suggests incorporating green recovery strategies into post-pandemic economic plans, focusing on sustainable practices and renewable energy investments.
    • Resilient Systems: Emphasizes the need for resilient and adaptive systems that can withstand future shocks, including those caused by climate change and environmental degradation.
    • Global Cooperation: COVID-19 underscored the importance of international cooperation and collective action to tackle global challenges, a principle that is equally applicable to environmental issues.

    Conclusion: By embracing the lessons from the pandemic, setting ambitious renewable energy targets, and focusing on land restoration and resilience, the global community can work towards a sustainable and resilient future. World Environment Day 2024 serves as a pivotal moment to reflect on these goals and renew our commitment to environmental stewardship.

    Mains PYQ:

    Q Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard. (150 Words, 10 Marks) (UPSC IAS/2018)

  • [pib] CSIR’s PI-CHeCK Project

    Why in the News?

    • The Council of Scientific and Industrial Research (CSIR) celebrated the completion of the initial phase of its groundbreaking health monitoring project, ‘Phenome India-CSIR Health Cohort Knowledgebase’ (PI-CHeCK).

    What is Phenome?

    • The human phenome refers to the comprehensive set of observable physical and biochemical traits, behaviours, and characteristics exhibited by an individual as influenced by genetics, environment, and lifestyle.
    • It encompasses a wide range of attributes, including but not limited to:
    1. Physical characteristics such as height, weight, eye colour, hair colour, facial features, and body shape.
    2. Biological functions and processes like metabolism, hormone levels, blood pressure, and immune response.
    3. Behavioral traits include personality traits, cognitive abilities, temperament, and mental health conditions.
    4. Disease susceptibility and health outcomes, such as the presence or absence of genetic disorders, chronic illnesses, and response to medical treatments.
    5. Environmental factors such as diet, exercise habits, exposure to toxins, socioeconomic status, and cultural influences.

    What is the PI-CHeCK Project?

    • PI-CHeCK launched on Dec 7, 2023, assesses risk factors for cardio-metabolic disorders in the Indian population.
    • ‘Phenome India’ health check-up camp targets CSIR employees, pensioners, and spouses across 17 states, and 24 cities.
    • Nearly 10,000 volunteers provide comprehensive health data.

    Objectives:

    • Developing India-Specific Algorithms: The project highlights the necessity of developing risk prediction algorithms tailored to India’s diverse genetic and lifestyle landscape, as existing algorithms may not accurately represent the Indian population.
    • Advancing Precision Medicine: CSIR’s commitment to advancing precision medicine is evident through the project’s focus on Predictive, Personalized, Participatory, and Preventive healthcare.
    • Catalyzing Nationwide Initiatives: By generating a comprehensive phenome database, PI-CHeCK aims to catalyze similar initiatives nationwide, ensuring more accurate risk prediction algorithms for India’s diverse population.

    PYQ:

    [2021] “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse.

    [2018] Appropriate local community-level healthcare intervention is a prerequisite to achieve ‘Health for All’ in India. Explain.

    [2011] Aspartame is an artificial sweetener sold in the market. It consists of amino acids and provides calories like other amino acids. Yet, it is used as a low-calorie sweetening agent in food items. What is the basis of this use?

    (a) Aspartame is as sweet as table sugar, but unlike table sugar, it is not readily oxidized in human body due to the lack of requisite enzymes.

    (b) When aspartame is used in food processing, the sweet taste remains, but it becomes resistant to oxidation.

    (c) Aspartame is as sweet as sugar, but after ingestion into the body, it is converted into metabolites that yield no calories.

    (d) Aspartame is several times sweeter than table sugar, hence food items made with small quantities of aspartame yield fewer calories on oxidation.

  • [pib] FSSAI Directive on Fruit Juices

    Why in the News?

    • FSSAI has mandated the immediate removal of any claims stating ‘100% fruit juices’ from labels and advertisements of reconstituted fruit juices by all Food Business Operators (FBOs).
      • FBOs must utilize existing pre-printed packaging materials before September 1, 2024, to comply with the directive.

    Compliance Guidelines on Fruit Juices

    • Products falling under this standard must be labelled as per the Food Safety and Standards (Labelling and Display) Regulations, 2020.
    • The term “reconstituted” must be specified in the ingredient list for juices reconstituted from concentrate.
    • Additionally, if the product contains added nutritive sweeteners exceeding 15 gm/kg, it must be labelled as ‘Sweetened juice’.

    Issues with such ‘Sweetened juice’

    • Misleading Marketing Practices: FSSAI has observed numerous FBOs inaccurately labelling various types of reconstituted fruit juices as 100% fruit juices.
    • Regulatory Assessment: Upon evaluation, FSSAI determined that such claims are misleading, especially when the major ingredient is water, and the primary ingredient is present in limited concentrations or when the juice is reconstituted using water and fruit concentrates or pulp.

    About Food Safety and Standards Authority of India (FSSAI)

    • The FSSAI is an autonomous body established under the Ministry of Health & Family Welfare, Government of India.
    • It was established under the Food Safety and Standards Act, of 2006, which consolidates various acts and orders that have hitherto handled food-related issues in various ministries and departments.
    • FSSAI is responsible for protecting and promoting public health through the regulation and supervision of food safety.

    Functions of FSSAI include:

    • Setting Standards: FSSAI sets standards for food products and regulates their manufacture, storage, distribution, sale, and import, to ensure that food items are safe for consumption.
    • Licensing and Registration: FSSAI grants licenses and registrations to food businesses based on their compliance with food safety standards and regulations.
    • Inspections and Monitoring: FSSAI conducts inspections, surveillance, and monitoring of food products and food businesses to ensure compliance with food safety standards.
    • Awareness and Education: FSSAI works towards creating awareness about food safety and hygiene among food businesses and consumers. It provides information and education programs to promote safe food handling practices.
    • Research and Development: FSSAI undertakes research and development activities related to food safety and standards.

    Health Awareness Initiatives by FSSAI

    • “Heart Attack Rewind”: This is FSSAI’s inaugural mass media campaign, designed to support its goal of eliminating trans-fat from India by 2022.
    • FSSAI-CHIFSS Collaboration: FSSAI has partnered with the CII-HUL Initiative on Food Safety Sciences to foster collaborations between industry, the scientific community, and academia to enhance food safety.
    • State Food Safety Index (SFSI): Developed by FSSAI, the SFSI evaluates states’ performance on five key parameters of food safety: Human Resources and Institutional Data, Compliance, Food Testing Infrastructure and Surveillance, Training & Capacity Building, and Consumer Empowerment.
    • Eat Right India Movement: This is a joint initiative by the Government of India and FSSAI aimed at revolutionizing the country’s food system to ensure safe, healthy, and sustainable food for all citizens.
    • Eat Right Station Certification: FSSAI awards this certification to railway stations that meet the benchmarks outlined in the Food Safety and Standards Act, 2006, ensuring the provision of safe and wholesome food to passengers.

    PYQ:

    [2018] Consider the following statements:

    1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
    2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • What is Greedflation?

    Why in the News?

    Political campaigns highlight inequality in India. Accusations suggest billionaires amass wealth through monopolistic control, dictating prices and suppressing real wages.

    Monopoly Power and Economic Dynamics

    • Monopoly Influence: Billionaires often amass wealth through monopolistic control, enabling them to dictate prices and suppress real wages.
    • Consumption Conundrum: Higher mark-ups under monopolies lead to reduced real wages and diminished consumption power, hindering economic growth and investment.
    • Greedflation Impact: The phenomenon of “Greedflation,” where companies raise prices to bolster profit margins amidst multiple demand-and-supply shocks, exacerbates inflationary pressures, particularly observed in developed economies.

    So what is Greedflation?

    • Definition: Greedflation, in essence, signifies that corporate greed is driving inflation, rather than the traditional wage-price spiral, leading to a profit-price spiral.
    • Corporate Exploitation: Companies exploit inflation by significantly raising prices, surpassing the need to cover increased costs, thereby maximizing profit margins and perpetuating inflation.
    • Profit-Price Spiral: Unlike the wage-price spiral, it involves companies exploiting inflation by excessively raising prices to maximize profit margins, triggering a cycle of inflation.

    Illustrative Scenario

    • Crisis Dynamics: During crises such as natural disasters or pandemics, businesses often raise prices due to increased input costs.
    • Exploitative Practices: However, some businesses exploit the situation by engaging in excessive profit-making through significantly inflated price mark-ups.

    Impact of Greedflation

    • Disproportionate Impact: Greedflation disproportionately affects low-income and middle-class individuals, diminishing their consumption and lowering living standards.
    • Wealth Disparities: While benefiting the wealthy by inflating asset values, it widens the wealth gap and exacerbates income inequality.
    • Market Instability: Sharp price increases and speculative activities driven by greed can create bubbles and unsustainable market conditions, heightening the risk of financial market crashes and crises.

    Global Implications

    • Divergent Policies: Inflationary pressures from greedflation may lead to divergent policy responses among nations.
    • Trade and Geopolitical Risks: Conflicting strategies to combat inflation can exacerbate global imbalances, trade tensions, and geopolitical conflicts as countries prioritize their interests and competitiveness.

    PYQ:

    [2015] Which reference to inflation in India, which of the following statements is correct?

    (a) Controlling the inflation in India is the responsibility of the Government of India only.

    (b) The Reserve Bank of India has no role in controlling the inflation.

    (c) Decreased money circulation helps in controlling the inflation.

    (d) Increased money circulation helps in controlling the inflation.

  • RobiNOweed: ICAR’s Herbicide-Tolerant Basmati Variety

    Why in the News? 

    • Indian Agricultural Research Institute (IARI) launched India’s inaugural non-GM herbicide-tolerant Basmati rice varieties for commercial farming, ensuring improved weed control, cost-effectiveness, and addressing water scarcity and methane emissions in cultivation.

    About the Indian Council of Agricultural Research (ICAR)

    • ICAR is an autonomous organisation under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare.
    • It is headquartered in New Delhi.
    • ICAR was formerly known as the Imperial Council of Agricultural Research.
    • It was established in 1929 as a registered society under the Societies Registration Act, 1860 on the basis of the report of the Royal Commission on Agriculture.

    Functions of ICAR:

    • Its primary mandate is to coordinate agricultural education and research in India and provide leadership in agriculture and allied sectors.
    • It is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country.

    Structure and Organization:

    • ICAR operates under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, Government of India.
    • It consists of a network of research institutes, national bureaus, project directorates, and agricultural universities across the country.
    • The council is governed by a Governing Body and an Executive Committee, which oversee its functioning and activities.

    Recognition and Awards:

    • ICAR confers prestigious awards, such as: the Rafi Ahmed Kidwai Award, the Borlaug Award, and the Hari Om Ashram Trust Award, to recognize excellence in agricultural research and education.

    About RobiNOweed

    • Dubbed as ‘RobiNOweed,’ these varieties are developed by ICAR-IARI and named as:
    1. Pusa Basmati 1979 and
    2. Pusa Basmati 1985
    • They are tailor-made for farmers employing the direct seeded rice (DSR) method, where weed management is crucial.

    Benefits Offered

    • Effective Weed Management: These new varieties offer an effective solution to weed issues and promote the success of the DSR method, potentially saving up to 33% of the total water requirement.
    • Water Conservation: DSR significantly reduces water usage compared to traditional flooding methods, addressing concerns of water depletion, especially in northwest India.
    • Market Impact: With IARI already holding a dominant 95% share in Basmati exports, these new varieties are expected to further boost production and export.

    Critical Assessment of Herbicide-Tolerant Varieties

    • Weed Management Alternatives: Some scientists argue against the necessity of Ht rice, advocating for eco-friendly weed management methods based on climatic factors.
    • Potential Risks: Concerns arise regarding the limited efficacy of the herbicide, its impact on genetic diversity, and the evolution of herbicide-resistant weeds.
    • Lessons from Past: Lessons from the Bt Cotton experience highlight the risks associated with overreliance on specific agricultural technologies.

    What is the Direct Seeding of Rice (DSR) technique?

    • Transplantation Method: In the conventional transplantation method, seeds are sown in nurseries, grown into seedlings, and then transplanted into puddled fields.
    • Direct Seeding: DSR involves directly drilling pre-germinated seeds into the field using tractor-powered machinery.
    • Simplicity and Efficiency: DSR eliminates the need for nursery preparation and transplantation, simplifying the cultivation process.
    • Resource Management: DSR offers benefits such as water savings and reduced labor requirements compared to conventional methods.
    • Higher Requirements: However, DSR requires higher seed quantities and levelled land, posing challenges for adoption.

     

    PYQ:

    [2018] With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

    1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
    2. GM mustard has the genes that allow the plant cross-pollination and hybridization.
    3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

  • What’s missing in the disaster database?

    Why in the news?

    The Food and Agriculture Organization (FAO) of the United Nations noted a rise in global disasters from roughly 100 yearly in the 1970s to about 400 in recent years, influenced partly by reporting biases.

    Recent Observations

    • Increase in Disaster Events: The number of disaster events reported worldwide has risen from 100 events per year in the 1970s to around 400 per year in the last 20 years. Patterns in disaster data reveal factors such as increased resilience, climate change, and improved humanitarian response.
    • Improved Reporting: Reporting of small events, particularly those with fewer than 200 deaths, has increased significantly since the 1980s and 1990s. Historical data mainly included major events due to limited interest and capacity for data collection in earlier periods.

    Missing Data and Limitations of Disaster Databases

    • Biases and Gaps in Historical Records: Earlier records predominantly captured major disasters, with smaller events often missing. Data coverage is particularly poor in low-income regions such as Sub-Saharan Africa and South Asia, where economic losses from disasters are frequently underreported.
    • Missing Economic Damage and Insured Losses: More than 40% of disasters between 1990 and 2020 lacked estimates of monetary damages. Insured damages were missing in 88% of disaster reports, and 96% needed records of reconstruction costs.
    • No coverage of Heat Events and Health Impacts: Reporting of heat events is concentrated in a few countries, suggesting underreporting in other regions. Indirect health effects of extreme temperatures, such as increased cardiovascular disease risk, are challenging to quantify and often underestimated.

    Need for Data (Way Forward) 

    • Improving Data Coverage: Enhanced data collection in low-income regions and better integration of smaller events into disaster databases are crucial.
    • Accurate Health Impact Quantification: Improved methods for estimating indirect health effects of extreme temperatures and other disaster-related conditions are needed. Utilising statistical methods to capture the broader health impacts of disasters can aid in better policy formulation.
    • Policy and Resilience Planning: Reliable and comprehensive disaster data are essential for effective policy-making and resilience planning. Data-driven insights and predictive analytics can help foresee the long-term impacts of disasters and guide regulatory measures to enhance disaster preparedness and response.

    Mains PYQ:

    Q Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (UPSC IAS/2020)

  • India’s GDP growth is impressive, but can it be sustained?

    Why in the news?

    The release of India’s GDP data was eagerly anticipated, especially following the recent upgrade in the “sovereign rating outlook” by S&P. It comes just days before the announcement of the union election results.

    Back2Basics: Rating Agency

    • A rating agency is a company that assesses the financial strength of companies and government entities, especially their ability to meet principal and interest payments on their debts.
    • Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) are the big three international credit rating agencies controlling approximately 95% of the global rating business.
    • In India, six credit rating agencies are registered under the Securities and Exchange Board of India (SEBI): CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings.

    What does the data say?

    • India’s GDP growth for 2023-24 is 8.2%, exceeding market expectations and surpassing the previous year’s growth of 7%.
    • Fourth-quarter growth is particularly robust at 7.8%, with upward revisions in previous quarters contributing to overall growth.
    • Notable divergence of 1 percentage point between GDP and GVA growth in 2023-24, mainly due to increased net taxes.
    • Sectoral analysis reveals mixed performance, with manufacturing and construction showing strong growth, while agriculture remains subdued.
    • Expenditure-side breakdown highlights a slower growth rate in private consumption but healthy growth in investment, led mainly by government spending.

    Pillars need to be sustained:

    • Private Consumption: Ensuring sustained consumer spending, particularly by addressing high inflation and low wage growth, to maintain economic momentum.
    • Investment: Continuously stimulating both government and private sector investment to drive economic expansion and foster innovation and productivity.
    • Exports: Maintaining competitiveness in global markets and promoting export-oriented growth to leverage external demand and diversify revenue sources.

    How to ensure the benefits of high growth trickle down to the lower-income categories?

    • Improving Private Consumption: Focus on reviving private consumption, especially among lower-income groups. Address concerns of high inflation and low wage growth affecting consumer confidence.
    • Enhancing Employment Opportunities: Prioritize improving the employment scenario, particularly in sectors generating significant employment like IT and the unorganized sector. Recognize the importance of employment in sustaining consumption growth and overall economic stability.
    • Investment in Rural Development: Ensure spatial and temporal distribution of rainfall for rural demand recovery. Moderating food inflation and improving employment conditions crucial for rural consumption revival.
    • Boosting Private Capex Cycle: Create an environment conducive to private investment, focusing on policy certainty and confidence in economic stability. Encourage private sector investment through favourable policies and supportive regulatory frameworks.
    • Policy Focus on Inclusive Growth: Direct policy attention towards ensuring that the benefits of high growth extend to lower-income categories. Implement targeted social welfare programs and initiatives to support vulnerable groups and reduce income inequality.
    • Monitoring Global Developments: Stay vigilant of global economic trends and developments that could impact the Indian economy, such as geopolitical tensions and supply shocks. Adapt policies accordingly to mitigate risks and capitalize on opportunities for sustained economic growth.

    Conclusion: The Indian government aims to bolster equitable growth through measures such as stimulating private consumption, enhancing employment prospects, and fostering a conducive investment environment, supported by targeted policies and proactive global monitoring.

    Mains PYQ:

    Q Explain the difference between the computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC IAS/2021)

  • RBI brings back 100 tonnes Gold from UK to its Vaults 

    Why in the News?

    The RBI has repatriated over 100 tonnes of gold from the UK to its domestic vaults, the largest transfer since at least 1991.

    What are Gold Reserves?

      • A gold reserve is the gold held by a country’s central bank, acting as a backup for financial promises and a store of value.
      • India, like other nations, stores some of its gold reserves in foreign vaults to spread out risk and facilitate international trading.
    • India’s Gold Reserves:
      • As of the end of March 2024, the RBI held 822.10 tonnes of gold, with 408.31 tonnes stored domestically.
      • The share of gold in the total forex of India is around 7-8% as of 2023.

    Where does the RBI store its gold?

    • India’s gold reserves are primarily stored in the Bank of England, which is known for its stringent security protocols.
    • The RBI also stores a portion of its gold reserves at the:
    1. Bank for International Settlements (BIS) in Basel, Switzerland, and the
    2. Federal Reserve Bank of New York in the United States.
    • During India’s foreign exchange crisis in 1990-91, the country pledged some of its gold reserves to the Bank of England to secure a $405 million loan, according to reports.
    • Even though the loan was paid back by November 1991, India decided to keep the gold in the UK for convenience.

    Why does the RBI store its gold in foreign banks?

    • Convenience: Storing gold overseas makes it easier for India to trade, engage in swaps and earn returns.
    • Averting Risks: There are risks involved, especially during times of geopolitical tensions and war.
      • The recent freezing of Russian assets by Western nations has raised worries about the safety of assets kept abroad and the RBI decision to shift a portion of the gold reserve to India could be prompted by these concerns.
    • Stable Prices: Unlike fiat currencies, which can be subject to inflation or devaluation due to various economic factors, the value of gold tends to be relatively stable over time, which makes it an attractive asset for central banks to hold as a reserve.

    Benefits Offered by Gold Reserves

    • Control domestic gold prices: With its big stash of gold, the RBI can help control local gold prices by using some of it in India. Last financial year, the RBI added about 27.47 tonnes of gold to the total reserve, bringing it to 794.63 tonnes.
    • Security buffer: The increased gold reserve works as a hedge against any financial crisis and to take measures to control inflation as well as currency devaluation.

    Why is the recent move significant?

    • Efficiency and Confidence: Bringing gold back to India reduces storage fees and signals confidence in the stability of the Indian economy.
    • Logistical Efficiency: Moving gold to India saves on storage fees paid to foreign custodians, such as the Bank of England.
    • Diversified Storage: Repatriation ensures diversified storage, enhancing security and reducing dependency on foreign storage.

    Has the RBI made similar purchases or transfers of gold in the past?

    • RBI started buying gold in 2018 and had previously bought 200 tonnes during the global financial crisis in 2009.
    • In the first quarter of 2024, the RBI bought 19 tonnes of gold, surpassing the 16 tonnes purchased throughout 2023.

    PYQ:

    [2015] The problem of international liquidity is related to the non-availability of:

    (a) Goods and services

    (b) Gold and silver

    (c) Dollars and other hard currencies

    (d) Exportable surplus

  • PraVaHa tool for Aerodynamic Design and Analysis

    Why in the News?

    The Indian Space Research Organisation (ISRO) has launched the Computational Fluid Dynamics (CFD) software named Parallel RANS Solver for Aerospace Vehicle Aero-thermo-dynamic Analysis (PraVaHa).

    About PraVaHa

    • PraVaHa was developed at ISRO’s Vikram Sarabhai Space Centre (VSSC), showcasing India’s prowess in aerospace technology.
    • It can simulate both external and internal flows on various aerospace vehicles, including launch vehicles, and winged, and non-winged re-entry vehicles.
    • It facilitates initial aerodynamic design studies by evaluating numerous configurations, crucial for optimizing vehicle performance and safety.

    Role of Computational Fluid Dynamics (CFD)

    • CFD predicts aerodynamic and aerothermal loads by solving governing equations. It has matured to offer high accuracy and fast simulations, addressing aerospace challenges like high pressure and intense heat flux.

    Integration in Gaganyaan Program

    • Key Applications: PraVaHa plays a pivotal role in the Gaganyaan program, facilitating aerodynamic analysis of human-rated launch vehicles such as HLVM3, Crew Escape System (CES), and Crew Module (CM).
    • Scalability and Collaboration: Designed to leverage both CPU and GPU architectures, PraVaHa ensures compatibility with existing and future supercomputing facilities, fostering collaboration with academic and government institutions.

    PYQ:

    [2010] In the context of space technology, what is “Bhuvan”, recently in the news?

    (a) A mini satellite launched by ISRO for promoting the distance education in India.

    (b) The name given to the next Moon Impact Probe, for Chandrayaan-II.

    (c) A geoportal of ISRO with 3D imaging capabilities of India.

    (d) A space telescope developed by India.