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GS Paper: GS3

  • The poultry industry needs urgent reforms

    Why in the news?

    The current outbreak of H5N1 was a disaster waiting to happen, as experts have been sounding alarm bells on the unsafe conditions at industrial livestock production for more than 10 years now.

    Scale of spreading H5N1 virus:

    • Global Spread of H5N1 in humans: The H5N1 virus has spread globally, affecting various species including humans, polar bears in the Arctic, and seals and seagulls in Antarctica.
    • In India Spread of H5N1 in humans:  The first H5N1 patient was reported in Maharashtra in 2006. An outbreak in December 2020 and early 2021 spread across 15 States
    • Human Fatality Rate: As per WHO, the fatality rate for H5N1 among humans is estimated at 52%, with 463 deaths recorded since 2003 out of 888 diagnosed cases.
    • Transmission from Birds and Contaminated Environments: Almost all human infections with H5N1 are linked to close contact with infected birds or contaminated environments, emphasizing the importance of biosecurity measures.
    • Spread in other species: This pathogen has crossed many species barriers, causing mortality among the polar bears in the Arctic and seals and seagulls in Antarctica.

    Causes for the spread of H5N1 (avian influenza or bird flu) infection:

    • Contact with infected birds: Humans can contract H5N1 if they come into direct contact with the body fluids, such as saliva, respiratory droplets, or feces, of infected birds.
    • Poultry Trade and Movement: The transportation and trade of infected poultry, poultry products, and crowded live poultry markets provide an environment for the virus to spread between birds and potentially to humans.
    • Antibiotic Resistance: The 269th Law Commission of India Report in 2017 highlighted evidence from the Tata Memorial Centre regarding the use of non-therapeutic antibiotics in poultry farming, leading to antibiotic resistance due to unhygienic living conditions.
    • Environmental Factors: Factors like proximity to bodies of water, reduced rainfall, and presence near major highways have been associated with increased risk of H5N1 outbreaks. These environmental conditions may facilitate the spread of the virus.

    Regulation: The Central Pollution Control Board (CPCB) has classified poultry units with more than 5,000 birds as a polluting industry that requires compliance and regulatory consent to establish and operate.

    Way Forward:

    • Draft Rules for Welfare: The Law Commission 269th recommended a set of draft rules for the welfare of chickens in the meat and egg industries, aligning with existing laws and international best practices for animal care, waste management, and antibiotic use.
    • Weaknesses in Draft Rules: The Draft Rules for the egg industry released by the Ministry of Agriculture and Farmers’ Welfare in 2019 were criticized for being weak and tokenistic, failing to meet the recommendations of the Law Commission.
    • Need for Oversight and Enforcement: Given the reclassification of the poultry industry as a highly polluting ‘orange category’ industry by the Central Pollution Control Board (CPCB), strict oversight for compliance and enforcement of environmental regulations is essential.

    Mains PYQ:

    Q What is the basic principle behind vaccine development? How do vaccines work? What approaches were adopted by the Indian vaccine manufacturers to produce COVID-19 vaccines? (UPSC IAS/2022)

  • The rising share of Personal Income Tax and Indirect Tax is a concern

    Why in the news?

    Recent data show that Personal Income Tax Collections have increased, while collections from Corporate Taxes have reduced.

    The present context of the rising share of Personal Income Tax and Indirect Tax:

    • Shift in Tax Composition: The data illustrates a significant shift in the composition of tax revenue, with personal income tax forming a larger share compared to corporate tax. This trend is accentuated by the sharp decline in corporate tax following the 2019 tax cuts.
    • Progressive vs. Regressive Taxation: Direct taxes, such as personal income tax, are considered progressive as they are based on income levels, whereas indirect taxes, like GST, are regressive, impacting all consumers uniformly regardless of their income.
      • The increasing share of indirect taxes implies a heavier burden on lower-income individuals.
    • Trend in Tax Composition: Chart 2 demonstrates a historical trend where indirect taxes had been decreasing since the 1980s, whereas direct taxes were on the rise. However, recent years have witnessed a reversal of this trend, with indirect taxes increasing and direct taxes declining.
    • International Comparison: Comparisons with BRICS economies indicate that India’s effective personal income tax rate is among the highest. This implies that Indian taxpayers may face relatively higher tax rates compared to individuals in other emerging economies.

    Concerns due to rising share of Personal Income Tax and Indirect Tax:

    • Impact on Middle and Lower Income Groups: The rising share of personal income tax and indirect taxes places a greater burden on poorer citizens and the middle class. This is particularly concerning as the majority of personal income tax filers fall within the ₹1 lakh-₹5 lakh annual income bracket, indicating that middle-income earners are disproportionately affected.
    • Comparison with BRICS Economies: Data comparisons with BRICS economies reveal that India’s effective personal income tax rate is among the highest. This suggests that individuals in India may be facing relatively higher tax rates compared to their counterparts in other emerging economies.
    • Concern for Equity and Economic Stability: The data underscores a growing concern regarding the equitable distribution of the tax burden. The heavier reliance on personal income tax and indirect taxes may exacerbate income inequality and strain the finances of middle and lower-income households.

    Way Forward:

    • Progressive Tax Reforms: Implementing progressive tax reforms can help alleviate the burden on middle and lower-income groups. This could involve revising tax brackets and rates to ensure that higher-income individuals contribute proportionally more to tax revenue.
    • Enhanced Direct Tax Compliance: Improving direct tax compliance measures, such as increasing tax enforcement efforts and reducing tax evasion loopholes, can help enhance revenue collection from high-income individuals and corporations.

    Mains PYQ 

    Q What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences the budgetary policies of the government. (UPSC IAS/2013)

  • RBI’s New Guidelines for Asset Reconstruction Companies (ARCs)

    Why in the news?

    The RBI has introduced updated guidelines for Asset Reconstruction Companies (ARCs) through a master direction, effective from April 24, 2024.

    What is an Asset Reconstruction Company (ARC)?

    Description
    About ARC is a special financial institution that acquires debtors from banks at a mutually agreed value and attempts to recover the debts or associated securities.
    Regulation
    • ARCs are registered under the RBI.
    • Regulated under the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act).
    Objective ARCs take over a portion of the bank’s non-performing assets (NPAs) and engage in asset reconstruction or securitization, aiming to recover the debts.
    Functions
    • Asset Reconstruction: Acquisition of bank loans or other credit facilities for realization.
    • Securitization: Acquisition of financial assets by issuing security receipts.
    Foreign Investment 100% FDI allowed in ARCs under the automatic route.
    Limitiations
    • ARCs are prohibited from undertaking lending activities.
    • They can only engage in securitization and reconstruction activities.
    Working
    • Bank with NPA agrees to sell it to ARC at a mutually agreed value.
    • ARC transfers assets to trusts under SARFAESI Act.
    • Upfront payment made to bank, rest through Security Receipts.
    • Recovery proceeds shared between ARC and bank.
    Security Receipts Issued to Qualified Institutional Buyers (QIBs) for raising funds to acquire financial assets.
    Significance
    • Banks can clean up their balance sheets and focus on core banking activities.
    • Provides a mechanism for resolution of NPAs and debt recovery.

    What are the new guidelines laid out by the RBI?

    • Enhanced Capital Requirements:
        • Minimum Capital Requirement Increase: ARCs are now mandated to maintain a minimum capital requirement of Rs 300 crore, a significant increase from the previous Rs 100 crore stipulation established on October 11, 2022.
        • Transition Period for Compliance: Existing ARCs are granted a transition period to reach the revised Net Owned Fund (NOF) threshold of Rs 300 crore by March 31, 2026.
        • Interim Requirement: However, by March 31, 2024, ARCs must possess a minimum capital of Rs 200 crore to comply with the new directives.
    • Supervisory Actions for Non-Compliance:
        • ARCs failing to meet the prescribed capital thresholds will face supervisory action, potentially including restrictions on undertaking additional business until compliance is achieved.
    • Expanded Role for Well-Capitalized ARCs:
      • Empowerment of Well-Capitalized ARCs: ARCs with a minimum NOF of Rs 1000 crore are empowered to act as resolution applicants in distressed asset scenarios.
      • Investment Opportunities: These ARCs are permitted to deploy funds in government securities, scheduled commercial bank deposits, and institutions like SIDBI and NABARD, subject to RBI specifications. Additionally, they can invest in short-term instruments such as money market mutual funds, certificates of deposit, and corporate bonds commercial papers.
      • Investment Cap: Investments in short-term instruments are capped at 10% of the NOF to mitigate risk exposure.

    PYQ:

    [2018] With reference to the governance of public sector banking in India, consider the following statements:

    1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
    2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

    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

  • [pib] Critical Minerals Summit

    Why in the news?

    The Ministry of Mines has organized a pivotal summit in New Delhi aimed at fostering collaboration, sharing knowledge, and driving innovation in Critical Mineral beneficiation and processing.

    What are Critical Minerals?

    • Critical Minerals are indispensable for economic development and national security, with their scarcity or concentration in specific regions posing potential supply chain vulnerabilities.
    • The declaration and identification of Critical Minerals is an ongoing process, influenced by technological advancements, market dynamics, and geopolitical factors.

    Critical Minerals in India:

    • India has identified 30 Critical Minerals (July 2023) based on factors like disruption potential, import reliance, and cross-sectoral usage.
      • Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, Rare Earth Elements, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.

    Critical Minerals

    Global Perspective:

    Various nations have outlined their lists of Critical Minerals based on unique circumstances:

    • The US recognizes 50 minerals critical for national security and economic development.
    • Japan has identified 31 minerals crucial for its economy.
    • The UK, EU, and Canada have their respective lists, reflecting their strategic priorities.

    India became the 14th member of the Mineral Security Partnership (MSP) in June 2023. 

    • MSP seeks to bolster critical minerals supply chains to support economic prosperity and climate objectives.
    • It seeks to ensure that critical minerals are produced, processed and recycled by catalyzing investments from governments and private sector across the full value chain.
    • Members: The other member countries are United States, Australia, Canada, Finland, France, Germany, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom and the European Commission.

    Note: Copper, gold and silver are not on the list of minerals under MSP (Wiki).

    Various Government Initiatives:

    • MMDR Act Amendment (2023):   24 minerals were designated as critical and strategic under the Mines and Minerals (Development and Regulation) Act.
    • National Mineral Policy (2019): The updated policy emphasizes the exploration and exploitation of Critical Minerals to harness India’s mineral potential effectively.
    • Khanij Bidesh India Ltd (KABIL): A joint venture comprising National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL), and Mineral Exploration Corporation Ltd (MECL), KABIL aims to secure a consistent supply of Critical Minerals by acquiring and developing assets overseas.
    • Indian Rare Earths Limited (IREL): It is a PSU that plays a significant role in the research and production of rare earth minerals.

    India’s Critical Mineral Imports:

    • Lithium Imports: In FY23, India imported 2,145 tonnes of lithium carbonate and lithium oxide, costing Rs 732 crore.
    • Nickel and Copper Imports: The country imported 32,000 tonnes of unwrought nickel and 1.2 million tonnes of copper ore, costing Rs 6,549 crore and Rs 27,374 crore, respectively.
    • Import Dependence: India relies entirely on imports for lithium and nickel, and 93% for copper.

    Country-wise dependence:

    1. China: India heavily relies on China for the import of critical minerals like lithium, cobalt, nickel, and graphite.
    2. Australia: India is actively engaged with Australia for acquiring mineral assets, particularly lithium and cobalt, to secure its supply chain for critical minerals.
    3. Argentina, Bolivia, and Chile: India is engaging with these countries, known for their reserves of battery metals like lithium and cobalt, to diversify its sources for critical minerals.

     

    PYQ:

    [2019] With reference to the management of minor minerals in India, consider the following statements:

    1. Sand is a ‘minor mineral’ according to the prevailing law in the country.
    2. State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
    3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.

    Which of the statements given above is/are correct?

    (a) 1 and 3

    (b) 2 and 3

    (c) 3 only

    (d) 1, 2 and 3

  • [pib] Launching of LSAM 20 (Yard 130)  

    Why in the News?

    The Indian Navy has inducted the ‘Ammunition Cum Torpedo Cum Missile Barge, LSAM 20 (Yard 130) into its fleet.

    What is LSAM 20?

    • LSAM 20 (Yard 130) is the Ammunition Cum Torpedo Cum Missile Barge (Storage) inducted by the Indian Navy.  (built by MSME Shipyard, M/s Suryadipta Projects Pvt Ltd, Thane).
    • LSAM 20 facilitates transportation, embarkation, and disembarkation of articles/ammunition to IN Ships.
    • These Barges are indigenously designed and built under relevant Naval Rules and Regulations of the Indian Register of Shipping.

    Objective 

    • A Torpedo Cum Missile Barge is a specialized vessel used by the Indian Navy to transport various types of ammunition, torpedoes, and missiles to operational areas.
    • These barges play a crucial role in providing logistical support to naval vessels by ensuring the uninterrupted transportation of essential military supplies. 

    PYQ:

    [2016] Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently?

    (a) Amphibious warfare ship

    (b) Nuclear-powered submarine

    (c) Torpedo launch and recovery vessel

    (d) Nuclear-powered aircraft carrier

  • Towards a Green Growth: On the RBI and a Green Taxonomy

    Why in the news?

    Extreme weather conditions may pose a risk to inflation, along with prolonged geopolitical tensions that could keep crude oil prices volatile, the Reserve Bank’s April Bulletin said on April 23.

    RBI’s Monetary Policy Report on the impact of climate shock and extreme weather events on food inflation:

    • Effects of Food Inflation: The report highlights the significance of extreme weather events and climate shocks in affecting not only food inflation but also the broader impact on the natural Rate of Interest and Financial Stability.
    • Broader Economic Impact: Climate shocks and extreme weather events are mentioned to have a broader impact on the economy’s financial stability, indicating that disruptions in food production and supply chains due to these events can lead to inflationary pressures beyond just the food sector.
    • Use of Economic Modeling: The report mentions the utilization of a New-Keynesian model incorporating a physical climate risk damage function to estimate the macroeconomic impact of climate change. This likely includes projections on how climate shocks affect food production and subsequently food inflation.
    • Warning on Long-Term Output Reduction: The report warns that without climate mitigation policies, the long-term economic output could be lower by around 9% by 2050. This suggests that climate shocks and extreme weather events could have lasting effects on food production and inflation.
    • Potential for Inflation Hysteresis: There’s a warning about the potential for inflation hysteresis to become entrenched, which could lead to a de-anchoring of inflation expectations. This implies that persistent disruptions caused by climate shocks could lead to sustained increases in food inflation.

    Way Forward:

    • Need Investment in Climate Resilience: Governments and businesses can invest in climate-resilient agriculture practices and infrastructure to mitigate the adverse effects of extreme weather events on food production.
    • Need Diversification of Food Sources: Diversifying food sources can help reduce reliance on regions prone to climate-related disruptions. This could involve promoting local food production, supporting small-scale farmers, and investing in alternative food production methods such as vertical farming or hydroponics.

    Mains PYQ 

    Q What policy instruments were deployed to contain the great economic depression?

  • [PREMIUM] An Overview of the Digitalization in Indian Economy

    Why in the news?

    As per RBI findings, India’s core digital economy saw a rise from constituting 8.5% of GVA in 2019 to 12.5% in 2023, marking a growth rate of 15.6% over the span of 2019-2023.

    What is digitisation?

    • Digitization refers to the process of converting information, data, or physical objects into digital format. Digitization enables information to be stored, accessed, and manipulated electronically, often leading to increased efficiency, accessibility, and flexibility compared to traditional analog methods.

    Origin in World 

    • The origin of digitalization can be traced back to the late 19th century when Herman Hollerith developed a punch card system for tabulating data.
    • Alan Turing’s theoretical work on computation in the early 20th century laid the foundation for the development of the first electronic computers in the 1940s, which were pivotal in digitizing various forms of information.

    Origin in India 

    • Late 20th century: The origins of digitalization in India can be traced back to the late 20th century, with the advent of personal computers and the internet.
    • Early 2000s:The government’s concerted efforts to drive digital transformation in the country began in the early 2000s with the launch of the National e-Governance Plan (NeGP) in 2006
    • 2015: The NeGP aimed to make government services available to citizens electronically by improving online infrastructure and connectivity. This laid the foundation for the more comprehensive “Digital India” initiative, which was launched by Prime Minister Narendra Modi in 2015

    Status of Digitalization in the Indian Economy

    • Enhancement of E-Governance: The Digital India initiative has brought about substantial enhancements in e-governance services. Programs such as e-visas and the Digital Locker system have effectively modernized government services, leading to a reduction in paperwork and greater accessibility for citizens.
    • E-Commerce market: India’s e-commerce market is expected to reach $200 billion by 2026. Major players like Flipkart and Amazon have expanded their reach, with the COVID-19 pandemic accelerating online shopping adoption.
    • Digital transaction: The BHIM (Bharat Interface for Money) app, utilizing the Unified Payments Interface (UPI), has garnered immense popularity, enabling secure peer-to-peer transactions. By August 2023, UPI had processed more than 10 billion monthly transactions, amounting to INR 18 trillion ($204.77 billion).
    • Startup Ecosystem in India: India’s rapidly growing startup ecosystem currently encompasses 110 unicorns valued at $347 billion, featuring prominent companies such as Paytm, Ola, and Zomato. These unicorns exemplify India’s prowess as a technology-driven entrepreneurial center.
    • Digital Financial Inclusion: Digital financial services, propelled by programs such as Jan Dhan Yojana, have advanced financial inclusion by facilitating the opening of millions of bank accounts for those previously excluded from or underrepresented in the banking system.
    • Surge in Broadband and Internet Usage: India has experienced a notable surge in broadband adoption, boasting 825 million mobile broadband subscribers as of July 2023. This uptick has resulted in heightened data consumption and escalated online engagement, especially among Generation Z.

    Key challenges related to digitalisation in India:

    • Lack of skills: Rapid technological change increase the demand of skilled workforce. Only 42% of India’s workforce possesses digital skills, highlighting the need for digital literacy and upskilling.
    • Regulatory challenges: For businesses, especially startups, grappling with intricate digital regulations, e-commerce taxation, and intellectual property matters continues to present significant challenges.
    • Privacy issues:The surge in digital transactions and data exchange has sparked notable concerns regarding privacy and data security. These concerns are being tackled by the Personal Data Protection Bill, which introduces regulatory intricacies.
    • Cybersecurity: As digitization increases, the risk of cyber threats and attacks grows. India faced 91 lakh cybersecurity incidents in 2022, ranking third globally in the average cost of data breaches.
    • Digital Divide: Despite advancements, there remains a digital gap, with rural areas experiencing restricted internet and technology accessibility, resulting in approximately 50% of the population being offline.

    Measures to address these challenges:

    • Digital Skills Development: Implement comprehensive digital literacy programs to enhance the skills of the workforce.
    • Regulatory Simplification:Streamline digital regulations, especially for startups, to reduce complexities and facilitate smoother operations.Provide guidance and support to businesses on e-commerce taxation and intellectual property matters.
    • Privacy and Data Security: Enforce the Personal Data Protection Bill to address privacy concerns and ensure data security.Enhance awareness campaigns to educate the public about data privacy and protection measures.
    • Cybersecurity Measures: Strengthen cybersecurity infrastructure to combat the increasing cyber threats and attacks.Invest in advanced cybersecurity technologies and training programs to build a resilient defense system.
    • Closing the Digital Divide:Expand digital infrastructure in rural areas to improve internet and technology accessibility.

     Steps taken by government:

    • Cybersecurity Framework: Enhance cybersecurity infrastructure and awareness, emphasizing collaboration between government agencies and the private sector under National Cyber Security Policy of 2021.
    • Data Protection Laws: Enacted data protection laws and regulations, like the Digital Personal Data Protection Act, of 2023, to ensure privacy and responsible data handling.
    • Expansion of Broadband : Accelerate efforts to expand broadband connectivity in rural and remote areas, leveraging public-private partnerships like the BharatNet project.
    • Digital initiative: Comprehensive digital literacy initiatives targeting both urban and rural communities, exemplified by programs like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA).

    Conclusion: 

    Need to Implement widespread digital literacy programs to equip individuals with the necessary skills to navigate the digital landscape and emphasize upskilling and reskilling initiatives to meet the demands of rapid technological advancements.Encourage collaboration between the government and the private sector to drive digitization initiatives.

     

    Mains PYQ

    Q Implementation of Information and Communication Technology (ICT) based projects/programmes usually suffers in terms of certain vital factors. Identify these factors and suggest measures for their effective implementation. (UPSC IAS/2019)

    Q Has digital illiteracy, particularly in rural areas, coupled with lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification.(UPSC IAS/2021)

  • Advanced Composite Solar Sail System (ACS3) Project

    Why in the news?

    NASA has launched its Advanced Composite Solar Sail System (ACS3) spacecraft that uses sunlight for propulsion from New Zealand into space.

    About Advanced Composite Solar Sail System (ACS3) Project

    • The spacecraft is slated to orbit 1,000 kilometers above Earth, deploying an 80-square-meter solar sail approximately 25 minutes after liftoff.
    • It harnesses sunlight as a renewable propulsion source, marking a novel advancement in space exploration.
    • It uses a compact CubeSat, similar in size to an oven, which facilitates propulsion by capturing solar particle energy.
    • Operational Phases:
    • The initial flight phase spans two months and involves subsystems checkout and solar sail deployment.
    • A series of pointing maneuvers will showcase orbit raising and lowering, validating the effectiveness of sunlight pressure on the sail.

    The Technology Behind: Solar Sailing

    • Solar sails typically consist of lightweight, reflective materials such as Mylar or aluminized Kapton, which are deployed in space to capture sunlight.
    • The sail is often configured as a large, thin membrane with a large surface area to maximize the amount of sunlight it can intercept.
    • When sunlight reflects off a shiny solar sail, some of its momentum is transferred, giving the sail a small push.

    Solar sailing offers several advantages over traditional propulsion methods, including:

    1. Efficiency: Solar sailing does not require onboard fuel, making it a highly efficient and sustainable propulsion method for long-duration missions.
    2. Continuous thrust: Unlike chemical rockets, which provide brief bursts of acceleration, solar sails can provide continuous thrust as long as they are exposed to sunlight.
    3. Maneuverability: Solar sails can change their trajectory by adjusting the orientation of the sail relative to the direction of incoming sunlight. This allows for precise navigation and maneuvering in space.
    4. Interstellar travel: Solar sailing has the potential to enable interstellar missions by gradually accelerating spacecraft to very high velocities over time, allowing them to explore distant star systems.

     

    PYQ:

    [2016] What is ‘Greased Lightning-10 (GL-10)’, recently in the news?

    (a) Electric plane tested by NASA

    (b) Solar-powered two-seater aircraft designed by Japan

    (c) Space observatory launched by China

    (d) Reusable rocket designed by ISRO

  • India’s growing dependence on Chinese Imports

    Why in the news?

    • India’s imports from China surged to over $101 billion in the fiscal year 2023-24, marking a significant increase from approximately $70 billion recorded in 2018-19.
    • The proportion of China’s industrial goods imports to India has risen from 21% to 30% over a span of 15 years, as highlighted in a report by the Global Trade Research Initiative (GTRI).

    India’s Import: GTRI study

    • The GTRI study revealed that imports from China have grown at a pace 2.3 times faster than India’s overall imports during the 15-year period.
    • Contrary to common belief, China has emerged as the top supplier in eight core industrial sectors, encompassing machinery, chemicals, pharmaceuticals, and textiles, among others.
    • India is experiencing stagnant exports valued at around $16 billion annually.
    • Over a six-year period spanning from 2018-2019 to 2023-24, India’s cumulative trade deficit with China surpassed $387 billion, prompting apprehension among policymakers.

    China’s Share of India’s Imports:

    • China accounted for 15% of India’s overall imports in 2023-24, with $101.8 billion out of a total of $677.2 billion.
    • Sector-wise Contributions:
    1. Electronics, Telecom, and Electrical Products: China’s contribution was 38.4% in April-January 2023-24.
    2. Clothing: Nearly 42% of India’s textile and clothing imports accounted from China.
    3. Machinery Sector: China accounted for 39.6% of India’s overall imports.
    4. Chemical and Pharmaceutical Sector: China’s share was 29.2%.
    5. Plastics and Related Articles: China provided articles worth $4.8 billion, accounting for 25.8% of total imports in this sector.

    Back2Basics: Top Importers of India

    S. No Importer Share of India’s Imports
    1. China (Biggest Importer in India) 15.43%
    2. United Arab Emirates 7.31%
    3. United States 7.07%
    4. Switzerland 3.82%
    5. Hong Kong 3.12%
    6. Singapore 3.09%
    7. Indonesia 2.89%
    8. South Korea 2.85%

     

    PYQ:

    [2017] ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor.

  • Unveiling the Link between Fairness Creams and Nephrotic Syndrome

    Why in the news?

    • Researchers from Kerala reported 15 cases of Membranous Nephropathy (MN) linked to the regular application of fairness creams.
    • These creams contained high levels of mercury, sometimes exceeding the safe limit by 10,000 times.

    Mercury Contamination in Hair Cream

    • Blood and urine screenings of affected individuals unveiled alarmingly high levels of mercury, a well-known toxic element.
    • The fairness creams contained mercury levels up to 10,000 times above the permissible limit of 1 ppm under Minamata Convention (2013).
    • Most cases were PLA2R (phospholipase A2 receptor) negative, indicating a different cause.
    • Cases of MN linked to Neural epidermal growth factor-like protein 1 (NELL-1) have been identified.
    • NELL-1 has been associated with MN caused by traditional medicines containing high mercury levels.

    Understanding Membranous Nephropathy

    • Membranous Nephropathy (MN) is a nephrotic syndrome, characterized by excessive protein leakage into urine, eventually leading to kidney failure. Symptoms such as fatigue, edema, and proteinuria were found to have a history of regular fairness cream usage.

    Impact of Mercury:

    • Mercury in fairness creams inhibits melanin formation, resulting in lighter skin. Consumers perceive higher mercury levels as more effective for skin whitening.
    • Mercury, a potent heavy metal found in these creams, penetrates the body through various channels, including sweat glands and hair follicles, causing systemic toxicity.
    • Chronic exposure to mercury can result in kidney damage, neurological disorders, and a myriad of other health complications.

    Back2Basics: Minamata Convention on Mercury

    • The Minamata Convention on Mercury is devised to safeguard human health and the environment from the detrimental impacts of mercury and its derivatives.
    • Its name derives from the Japanese bay where, during the mid-20th century, industrial wastewater tainted with mercury inflicted severe health damage upon thousands of individuals, leading to what is now recognized as “Minamata disease.”
    • Signed in 2013 and enforced in 2017, it operates as a United Nations treaty under the purview of the United Nations Environment Programme (UNEP).
    • Countries ratifying the Convention are legally obliged under international law to implement these regulations.
    • 128 countries are signatories, with 119 of them having ratified it; India became a party by ratifying it in 2018.

    Activities covered by the Convention:

    • The Convention encompasses all phases of the mercury life cycle, aiming to regulate and diminish mercury usage across various products, processes, and industries.
    • This encompasses regulations about:
      • Mercury mining involves bans on new mines and the gradual phase-out of existing ones.
      • Gradual reduction and elimination of mercury utilization in numerous products and procedures.
      • Control measures address emissions into the atmosphere and release into soil and water bodies.
      • Oversight of the informal artisanal and small-scale gold mining sector.
      • Management of interim mercury storage and its disposal once classified as waste, as well as remediation of mercury-contaminated sites and associated health issues.

     

    PYQ:

    [2010] Indiscriminate disposal of used fluorescent electric lamps causes mercury pollution in the environment. Why is mercury used in the manufacture of these lamps?

    (a) A mercury coating on the inside of the lamp makes the light bright white

    (b) When the lamp is switched on, the mercury in the lamp causes the emission of ultra-violet radiations

    (c) When the lamp is switched on, it is the mercury which converts the ultra-violet energy into visible light

    (d) None of the statement given above is correct about the use of mercury in the manufacture of fluorescent lamps