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GS Paper: GS3

  • Groundwater Extraction and Land Subsidence

    groundwater

    Central Idea: Groundwater extraction in northwestern India, including Punjab, Haryana, Delhi, and Faridabad, has led to land subsidence and structural damage.

    What is Groundwater?

    • Groundwater is the water found underground in the cracks and spaces in soil, sand and rock.
    • It is stored in and moves slowly through geologic formations of soil, sand and rocks called aquifers.
    • Aquifers are typically made up of gravel, sand, sandstone, or fractured rock, like limestone.
    • Water can move through these materials because they have large connected spaces that make them permeable.
    • Aquifers, hand-dug wells, and artesian wells are different types of sources of groundwater.

    Reasons for Depletion

    • Increased demand for water for domestic, industrial and agricultural needs and limited surface water resources lead to the over-exploitation of groundwater resources.
    • Limited storage facilities owing to the hard rock terrain, along with the added disadvantage of lack of rainfall, especially in central Indian states.
    • Green Revolution enabled water-intensive crops to be grown in drought-prone/ water deficit regions, leading to over-extraction of groundwater.
    • Frequent pumping of water from the ground without waiting for its replenishment leads to quick depletion.
    • Subsidies on electricity and high MSP for water-intensive crops is also leading reasons for depletion.
    • Inadequate regulation of groundwater laws encourages the exhaustion of groundwater resources without any penalty.
    • Deforestation, unscientific methods of agriculture, chemical effluents from industries, and lack of sanitation also lead to pollution of groundwater, making it unusable.
    • Natural causes include uneven rainfall and climate change that are hindering the process of groundwater recharge.

    Impact of groundwater depletion

    • Lowering of the water table: Groundwater depletion may lower the water table leading to difficulty in extracting groundwater for usage.
    • Reduction of water in streams and lakes: A substantial amount of the water flowing in rivers comes from seepage of groundwater into the streambed. Depletion of groundwater levels may reduce water flow in such streams.
    • Subsidence of land: Groundwater often provides support to the soil. When this balance is altered by taking out the water, the soil collapses, compacts, and drops leading to subsidence of land.
    • Increased cost for water extraction: As the depleting groundwater levels lower the water table, the user has to delve deep to extract water. This will increase the cost of water extraction.

    Mechanism of Land Subsidence

    • The relationship between excessive groundwater extraction and land subsidence became evident through the analysis of data from Gravity Recovery and Climate Experiment (GRACE) satellites.
    • Excessive groundwater withdrawal, coupled with limited monsoon rain, has resulted in critically low groundwater levels in the region.
    • Land subsidence occurs when underlying aquifers, which are deep water channels storing percolated water, are not adequately recharged.
    • The depletion of aquifers causes the layers of soil and rock above them to sink gradually.
    • This sinking of soil is similar to “soil settlement” observed in mining operations.

    Regulation of Groundwater in India

    (1) Central Ground Water Authority (CGWA)

    • It has the mandate of regulating groundwater development and management in the country.
    • It is constituted under the Environment (Protection) Act of 1986.
    • CGWA issues advisories, public notices and grant No Objection Certificates (NOC) for ground water withdrawal.

    (2) National Aquifer Mapping and Management Programme (NAQUIM)

    • The NAQUIM is an initiative of the Ministry of Jal Shakti for mapping and managing the entire aquifer systems in the country.
    • It maintains the Hydrological Map of India.

    (3) Atal Bhujal Yojana 

    • It is a Central Sector Scheme, for sustainable management of groundwater resources with community participation in water-stressed blocks.

    Way Forward

    • Routine survey: There should be regular assessment of groundwater levels to ensure that adequate data is available for formulating policies and devising new techniques.
    • Assessment of land use pattern: Studies should be carried out to assess land use and the proportion of agricultural land falling under overt-exploited units.
    • Changes in farming methods: To improve the water table in those areas where it is being overused, on-farm water management techniques and improved irrigation methods should be adopted.
    • Reforms in power supply subsidies: The agricultural power-pricing structure needs to be revamped as the flat rate of electricity adversely affects the use of groundwater.
    • Monitoring extraction: There should be a policy in place to monitor the excessive exploitation of groundwater resources to ensure long-term sustainability.

     

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  • UK sees success in Mitochondrial Replacement Therapy

    mitochondria

    Central Idea

    • The birth of a baby using three persons’ DNA using Mitochondrial Replacement Therapy (MRT) in the UK has generated significant attention and discussion.
    • The baby has three parents, with the mitochondria coming from a donor in addition to the genetic material from the biological parents.
    • This pioneering technology was employed to prevent the baby from inheriting the mother’s mitochondrial disease.

    What is Mitochondria?

    Description
    Structure Membrane-bound organelles with outer and inner membranes
    Energy Production Generate ATP through cellular respiration and oxidative phosphorylation
    ATP Production Breakdown of carbohydrates, fats, and proteins in the inner membrane
    DNA and Replication Possess their own circular DNA (mtDNA) and can replicate independently
    Other Functions Involved in calcium signalling, apoptosis, and synthesis of molecules
    Inheritance Maternally inherited during fertilization
    Evolutionary Origin Arise from a symbiotic relationship with bacteria-like organisms
    Disorders Mutations or dysfunction can cause mitochondrial diseases

     

    • Certain defects in mitochondria can lead to mitochondrial diseases, impacting the function of energy-hungry tissues in various organs.
    • Mitochondrial diseases have no cure but can be treated, and their incidence is estimated to be one in 5,000 people.
    • In this case, the mother had a mitochondrial disease that she wanted to avoid passing on to her baby, but she did not want to use a donor egg.

    What is Mitochondrial Replacement Therapy (MRT)?

    • MRT is a medical technique used to prevent the transmission of certain mitochondrial diseases from a mother to her child.
    • It involves replacing faulty mitochondria in an egg or embryo with healthy mitochondria from a donor.
    • The procedure is typically performed using in vitro fertilization (IVF) techniques.
    • The nucleus, containing the majority of the genetic material, is transferred from the intended parents’ egg or embryo to a donor egg or embryo with healthy mitochondria.
    • The resulting embryo, with nuclear DNA from the intended parents and healthy mitochondria from the donor, is then implanted into the mother’s uterus for gestation.

    How does it work?

    • The father’s sperm fertilizes the eggs from the biological mother and a female donor with healthy mitochondria.
    • The genetic material from the donor’s egg is replaced with that of the biological parents, resulting in an egg with the parents’ DNA and the donor’s mitochondria.
    • This modified egg is then implanted into the mother’s uterus and carried to full term, resulting in a baby free from the mother’s mitochondrial disease.

    Uses of MRT

    • Prevention of Mitochondrial Diseases: MRT helps prevent the transmission of certain mitochondrial diseases from mothers to their children.
    • Family Planning: It enables individuals or couples with mitochondrial DNA mutations to have genetically related children without the risk of disease inheritance.
    • Improved Health: MRT can significantly improve the overall health and well-being of individuals by avoiding debilitating mitochondrial diseases.
    • Ethical Considerations: It provides an alternative to traditional donor egg options, allowing intended parents to have a child with their own genetic material while avoiding disease transmission.
    • Scientific Advancements: MRT contributes to scientific research and advancements in assisted reproductive technologies, expanding our understanding of mitochondrial biology and potential treatment options for mitochondrial disorders.

    Recent advancements in UK

    • The baby primarily carries DNA from its biological parents and a small percentage from the donor whose mitochondria was used during fertilization.

    Scientific process

    • Mitochondrial diseases are inherited from the mother, prompting research to find ways to protect infants from inheriting these diseases.
    • The Newcastle Fertility Clinic developed an advanced in vitro fertilization technique known as Mitochondrial Donation Treatment (MDT).

    Legal Facilitation of MDT

    • The UK government amended the law in 2015 to allow for mitochondrial replacement therapy (MRT) or MDT.
    • The Newcastle Fertility Centre became the first center to obtain a license to perform the procedure, and the first cases were approved in 2018.

    Issues with MRT

    • Transfer of Defective Mitochondria: There is a minimal risk of transferring small amounts of defective mitochondria along with healthy ones during the procedure.
    • Long-Term Safety: The long-term safety of MRT is still being studied, and ongoing monitoring is necessary to assess any potential risks or effects.
    • Ethical and Social Concerns: MRT raises ethical and social considerations related to the creation and destruction of embryos, use of donor gametes, and altering the germline.
    • Limited Availability: MRT is a highly regulated procedure, and its availability may be limited to specific countries or cases approved by regulatory bodies.
    • Emotional and Psychological Impact: Undergoing MRT involves emotional implications and decision-making, which can have an impact on individuals and couples involved.

     

     

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  • Protecting Critical Information Infrastructure: The Role of the G20

    Central Idea

    • Technology has become pervasive, impacting various aspects of society, including national and foreign policies, governance, service delivery, and warfare. However, this dependence on technology also exposes critical systems to potential disruptions. Safeguarding critical systems is a nation’s responsibility to ensure the continuity of vital services.

    What is critical information infrastructure?

    • Critical information infrastructure refers to the interconnected systems and assets that are essential for the functioning of a nation’s society, economy, and government. It encompasses the hardware, software, networks, data, and communication channels that support vital services and processes.
    • It includes sectors such as transportation, energy, banking and finance, healthcare, telecommunications, water and sanitation, emergency services, and government networks.
    • Protecting critical information infrastructure is crucial to ensure the continuity of services, safeguard sensitive data, and defend against cyber threats, including cyberattacks, data breaches, and other malicious activities.

    Differences in defining critical information infrastructure

    • Criteria for Criticality: Different countries employ distinct criteria to determine the criticality of information infrastructure.
    • For example: One country may consider infrastructure critical if its failure impacts national security, economy, public health, or safety. Another country may define critical infrastructure based on the potential for sustained supply shortages, disruptions to public safety and security, or other significant consequences.
    • Scope of Infrastructure: There may be variations in the scope of infrastructure considered critical. While certain sectors like energy, transportation, banking, and telecommunications are commonly recognized as critical across many countries, there might be differences in identifying sub-sectors or specific enterprises within those sectors. Some countries may include additional sectors like water and sanitation, emergency services, healthcare, or government networks in their definition of critical information infrastructure.
    • Overlapping Criteria: In some cases, the criteria used to identify critical infrastructure may overlap with one another. For instance, ensuring the availability, delivery, or integrity of essential services can encompass vital societal functions, information flow, and communication channels. Harmonizing these overlapping criteria can help establish specific and comprehensive criteria that cater to the needs of all countries.
    • National Context: National priorities and contextual factors also influence the definition of critical information infrastructure. Countries may consider their unique geopolitical situation, existing threats, vulnerabilities, and the potential impact on their economy and citizens. This context-specific approach allows each country to address its specific challenges and ensure the protection of infrastructure crucial to its national well-being.

    Role of the G20 in developing global norms for protecting critical infrastructure

    • Platform for Discussion: The G20 provides a platform for member countries to engage in discussions and exchanges on pressing global issues, including cybersecurity and the protection of critical infrastructure. It brings together policymakers, experts, and stakeholders from various sectors to share insights, experiences, and best practices.
    • Building Consensus: The G20 aims to build consensus among member countries on critical issues related to protecting infrastructure. Through dialogue, negotiations, and diplomatic efforts, the G20 seeks to develop common understandings and principles that can guide international cooperation in safeguarding critical information infrastructure.
    • Initiating Discussions: The G20 has the capacity to initiate discussions on specific topics and themes relevant to critical infrastructure protection. By placing the issue on the G20 agenda, it draws attention to the importance of addressing cybersecurity risks and establishing global norms in this area.
    • Leveraging Economic Influence: The G20 represents around 85 percent of global GDP, over 75 percent of global trade, and a significant portion of the world population. This economic influence provides the G20 with leverage to drive discussions and encourage member countries to prioritize the protection of critical infrastructure.
    • Collaboration with International Organizations: The G20 collaborates with international organizations such as the United Nations (UN), International Telecommunication Union (ITU), and Organization for Economic Cooperation and Development (OECD). This collaboration helps leverage the expertise, resources, and frameworks of these organizations to inform discussions and develop comprehensive approaches to protecting critical infrastructure.
    • Promoting International Stability: The G20 recognizes that protecting critical infrastructure is crucial for international stability and economic cooperation. By advocating for global norms and responsible state behavior, the G20 aims to enhance cybersecurity, prevent disruptions, and promote a secure digital environment for economic activities.
    • Influencing Policy Development: The G20’s discussions and recommendations on critical infrastructure protection can influence policy development at the national and international levels. Member countries may align their policies and frameworks with the norms and principles identified through G20 deliberations, thereby fostering harmonization and cooperation.

    Recommendations to the G20

    • Common Definition and Critical Sectors: The G20 should adopt a phased approach, beginning with establishing a common definition of critical infrastructure. Subsequently, a broader consensus on critical sectors should be built, followed by the formulation of common principles for regulating critical infrastructure. This process will facilitate a global consensus, ensure cooperation among member countries, and guide nations that are in the early stages of regulating critical infrastructure.
    • Common Principles: While formulating common principles for regulating critical infrastructure, the G20 should reaffirm and adopt existing norms as the foundation for future discussions. This includes commitments made in G20 documents like the Hamburg Action Plan and the Buenos Aires Declaration. Furthermore, the G20 can draw from the initiatives of other multilateral groupings, such as the G7, G8, and OECD, that have focused on protecting critical infrastructure.
    • Respecting International Law: The G20 should commit to protecting critical infrastructure and refrain from intentionally damaging it. Member countries should conduct themselves in accordance with international law and uphold responsible state behavior in cyberspace.
    • International Cooperation: G20 countries must enhance cooperation to prevent, mitigate, trace, and investigate cyber incidents targeting critical infrastructure. Sharing information regarding such incidents should be encouraged. Adopting international standards relevant to critical infrastructure will help harmonize approaches to regulation and enforcement, reducing conflicts and improving cooperation.
    • Capacity Building: Investing in research and development and building capacity in emerging technologies such as artificial intelligence (AI), drones, and space is crucial. G20 countries should support low- and middle-income nations in accessing research and technologies. Additionally, countries should respond to requests for assistance from states whose critical infrastructure has been affected, and promote the application of certified security technologies based on international standards.
    • Multistakeholder Approach: A multistakeholder commitment is vital to protecting critical information infrastructure. Governments, technology companies, and civil society groups should collaborate to share and analyze critical infrastructure information, prevent attacks, and respond to damage. Awareness should be raised to ensure stakeholders understand the nature and extent of critical information infrastructure and their respective roles in protecting it.
    • National Laws: G20 countries should incorporate the principles and norms for protecting critical infrastructure into their national laws. This will help create a culture of enforcement and cooperation at both the national and international levels.
    • Institutional Mechanism: Establishing an institutional mechanism for continuous research and the development of new standards for protecting critical infrastructure is essential. Drawing lessons from initiatives like the Christchurch Call, public-private partnerships can play a crucial role in establishing a global order for a safe cyberspace.

    Conclusion

    • The protection of critical information infrastructure is of paramount importance in today’s interconnected world. The G20, with its representation of major economies and commitment to international cooperation, plays a crucial role in developing global norms for safeguarding critical infrastructure. By establishing a common understanding and definition of critical information infrastructure, the G20 can facilitate discussions and build consensus among member countries.

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    Also read:

    Digital Public Infrastructure (DPI): New Backbone of India’s Economy

     

  • RBI advises banks to transit away from LIBOR

    Central Idea: The RBI has issued an advisory to banks and other RBI-regulated entities regarding the transition away from London Interbank Offered Rate (LIBOR) July 1.

    What is London Interbank Offered Rate (LIBOR)?

    Explanation
    Definition LIBOR is a benchmark interest rate used in financial transactions such as loans, derivatives, and bonds.

    It is the interest rate at which banks can borrow funds from other banks in the London interbank market.

    It serves as a benchmark rate for various financial transactions worldwide.
    Calculation Method LIBOR rates are calculated based on submissions from a panel of major banks in London.

    These banks estimate their borrowing costs for various currencies and tenors.

    The submissions are used to calculate an average rate, which is published daily by the Intercontinental Exchange (ICE), the administrator of LIBOR.
    Currencies and Tenors LIBOR is calculated for different currencies and tenors ranging from overnight to one year.

    The currencies include USD, EUR, GBP, JPY, CHF, and others.

    The tenors represent the time periods for which the rates are quoted.
    Importance It has been widely used since the 1980s as a benchmark for financial contracts worth trillions of dollars globally.

    It serves as a reference rate for various loans, derivatives, and other financial instruments.

     

    Why is RBI moving away from LIBOR?

    Like many other countries, has been working towards transitioning away from LIBOR. The primary reasons for this transition include:

    • Manipulation risks: Following the global financial crisis in 2008, there were concerns about the reliability and potential manipulation of LIBOR.
    • Discontinuation of LIBOR: The regulatory authority in the UK that oversees LIBOR, announced in 2017 that it will no longer compel banks to submit the necessary data to calculate LIBOR after the end of 2021.
    • Adoption of alternative Reference Rates: Various countries, including India, have identified and adopted alternative reference rates that are more reliable and based on actual market transactions. Ex RBI introduced the Secured Overnight Financing Rate (SOFR).
    • Alignment with International Standards: Many countries have already initiated the shift to alternative reference rates, necessitating India’s alignment to maintain consistency and harmonization in international financial markets.
    • Risk Mitigation: RBI’s move aims to mitigate the potential risks associated with an unreliable or manipulated benchmark rate.

    Related terminologies

    Mumbai Interbank Forward Outright Rate (MIFOR): MIFOR is a benchmark rate used in Indian financial markets. It represents the forward premium or discount on the USD-INR exchange rate based on the LIBOR rate.

    Fallbacks: They are provisions inserted into contracts to establish alternative reference rates if the original benchmark rate (such as LIBOR) becomes unavailable or unreliable.

     

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  • RBI to join Greenwashing TechSprint

    Central Idea: The RBI has announced its participation in the Global Financial Innovation Network’s (GFIN) Greenwashing TechSprint.

    What is Greenwashing?

    • Greenwashing is a term used to describe the practice of making exaggerated, misleading, or unsubstantiated claims about the environmental, social, and governance (ESG) credentials of a product, service, or company.
    • It is a deceptive marketing strategy that aims to portray an organization as environmentally friendly or socially responsible, even when its actions or practices do not align with these claims.
    • It creates the perception that a company is taking steps towards sustainability or social responsibility, but in reality, it may be engaging in practices that are harmful to the environment or society.

    There are various forms of greenwashing that companies may employ to deceive consumers or investors. These include:

    1. Vague or ambiguous claims: Companies may use general statements or buzzwords without providing specific details or evidence to support their environmental or social claims. For example, stating that a product is “eco-friendly” without explaining the specific environmental benefits or certifications.
    2. Irrelevant or misleading labels: Companies may use misleading labels or certifications that give the impression of sustainability or social responsibility but lack meaningful standards or independent verification. This can confuse consumers who rely on such labels to make informed choices.
    3. Hidden trade-offs: Greenwashing can involve emphasizing one positive aspect of a product or company’s operations while ignoring or downplaying other negative impacts. For instance, a company may highlight its use of renewable energy while disregarding other harmful environmental practices.
    4. Lack of transparency: Companies may fail to provide transparent information about their sustainability practices or refuse to disclose relevant data. This lack of transparency makes it difficult for consumers to verify the accuracy of the company’s claims.
    5. Inconsistent messaging: Some companies may adopt green initiatives or promote sustainable products as a public relations exercise, without making substantial changes to their overall operations. This inconsistency between their messaging and actual practices is a form of greenwashing.

    Implications of greenwashing

    • It undermines consumer trust, as people may make purchasing decisions based on misleading information.
    • It also hampers the credibility of genuinely sustainable businesses by creating scepticism in the market.
    • Moreover, it can divert attention and resources away from genuinely sustainable companies and initiatives.

    Back2Basics: Global Financial Innovation Network (GFIN)

    • GFIN was officially launched in January 2019.
    • It was inspired by the successful collaboration between 11 financial regulators during a cross-border pilot project known as the “Global Sandbox” in 2018.
    • The pilot project demonstrated the benefits of regulatory cooperation and information sharing in fostering responsible innovation in the financial sector.
    • GFIN consists of financial regulators and related organizations from around the world.
    • The network includes regulatory authorities, central banks, and supervisory bodies.

     

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  • What is Carbon Dating? How does it work?

    carbon dating

    Central Idea: Allahabad high court ordered the ASI to conduct the carbon dating process of the ‘Shivling’ found in the premises of the Gyanvapi mosque, without causing any damage to the structure.

    What is Carbon Dating?

    • Carbon dating is a widely-used method for determining the age of organic materials that were once living.
    • The method is based on the radioactive decay of Carbon-14 (C-14), an isotope of carbon with an atomic mass of 14.
    • It works by measuring the ratio of C-12 to C-14 in the atmosphere, as well as in plants and animals that acquire carbon through photosynthesis or food consumption.

    The half-life concept

    • Carbon-14 has a half-life of 5,730 ± 40 years—i.e., half the amount of the radioisotope present at any given time will undergo spontaneous disintegration during the succeeding 5,730 years.
    • Because carbon-14 decays at this constant rate, an estimate of the date at which an organism died can be made by measuring the amount of its residual radiocarbon.

    Limitations of Carbon Dating

    • Carbon dating has certain limitations and cannot be applied in all circumstances.
    • It is not suitable for determining the age of non-living things such as rocks.
    • Carbon dating becomes less accurate for objects older than 40,000-50,000 years, as the amount of detectable C-14 becomes significantly small.
    • Other radiometric dating methods are employed to determine the age of inanimate objects, which rely on the decay of radioactive elements present in the material.
    • Examples of such methods include potassium-argon dating and uranium-thorium-lead dating, which analyze the ratios of specific isotopes to estimate the age of rocks.

    Other Dating Methods

    In addition to radiometric dating, there are alternative methods to determine the age of objects.

    • Cosmogenic nuclide dating: CRN is one such method that utilizes radioactive decay to estimate age and is commonly used to study the age of ice cores in Polar Regions.
    • Potassium-argon dating: A radiometric dating method that measures the ratio of potassium to argon isotopes in rocks to determine their age.
    • Uranium-thorium-lead dating: A radiometric dating method that analyses the ratios of uranium, thorium, and lead isotopes in rocks to estimate their age.

     

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  • Species in news: Alligator Gar

    alligator-gar

    Central Idea: The Jammu and Kashmir Lake Conservation and Management Authority (LCMA) discovered a rare type of fish known as “Alligator Gar” for the first time during the ongoing cleaning of famous Dal Lake in Srinagar.

    Alligator Gar

    Information
    Scientific Name Atractosteus spatula
    Size and Weight Up to 8 feet in length, over 300 pounds
    Appearance Long, narrow body; crocodile-like head; sharp teeth
    Distribution Central and North America, freshwater habitats
    Fossil Record Traces back to the Early Cretaceous, over 100 million years ago
    Feeding Habits Voracious predator, feeds on fish, turtles, waterfowl, etc.
    Coloration Brown or olive on upper body, lighter underside
    Longevity Can live for several decades
    Conservation Status Least Concerned (IUCN)

     

     

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  • 25th anniversary of Pokhran-II

    pokhran

    Central Idea: The article provides a historical context for India’s nuclear program and focuses specifically on the Pokhran-II nuclear tests conducted in 1998. This year is special, marking 25 years since we started celebrating National Technology Day.

    India’s Nuclear Journey: A quick recap

    • India conducted nuclear bomb test explosions at Pokhran Test Range in 1998.
    • Codenamed Operation Shakti, these tests showcased India’s capability to build nuclear weapons.
    • The tests marked the culmination of a long journey that began in the 1940s-50s.
    • Physicist Homi J Bhaba played a crucial role in laying the foundations of India’s nuclear program.
    • Prime Minister Jawaharlal Nehru supported Bhaba’s efforts and established the Department of Atomic Energy (DAE) in 1954.

    Reasons: Threat of China and Pakistan

    • India’s perspective on nuclear weapons changed after the 1962 Sino-Indian War and China’s nuclear bomb test in 1964.
    • The political establishment realized the need for self-sufficiency in the face of an unfriendly China and Pakistan.
    • India sought nuclear guarantees from established nuclear weapons states but was unsuccessful.
    • The path to obtaining nuclear weapons became a priority for India.

    The “Discriminatory” NPT

    • The Non-Proliferation Treaty (NPT) was established in 1968, creating a divide between nuclear-weapon states and non-nuclear states.
    • India refused to sign the treaty, as it felt it did not address its concerns about reciprocal obligations from nuclear weapons states.
    • The NPT gained widespread international acceptance, but India remained one of the few non-signatories.

    Pokhran-I and its Aftermath

    • In 1974, India conducted its first nuclear test at Pokhran, known as Pokhran-I or Operation Smiling Buddha.
    • The test was described as a “peaceful nuclear explosion” but faced international condemnation and sanctions.
    • Political instability, including the Emergency in 1975, hindered India’s nuclear program’s progress.
    • Clamor for nuclear weapons resurfaced in the 1980s due to Pakistan’s advancing nuclear capabilities.

    The Period between the Two Tests

    • India faced challenges due to domestic political instability and changing international dynamics.
    • The fall of the USSR in 1991 weakened India’s military alliances.
    • The US continued to support Pakistan despite concerns about its nuclear program.
    • India faced pressure to quickly develop nuclear weapons as the window of opportunity appeared to be closing.

    Pokhran-II: Projecting India’s Strength

    • In 1998, the National Democratic Alliance (NDA) came to power under Atal Bihari Vajpayee.
    • Operation Shakti, conducted as a response to Pakistan’s missile launch, marked the culmination of India’s nuclear weaponization.
    • India declared itself a nuclear weapons state following Pokhran-II.
    • The tests faced some sanctions, but India’s growing economy and market potential helped it withstand international pressure.

     

     

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  • Chheligada Irrigation Project in Odisha

    Central Idea: Officials recently directed to begin construction of the multipurpose irrigation project at Chheligada, Odisha.

    Chheligada Irrigation Project

    • The project is a multipurpose medium project located near the village of Chheligada in the Gajapati District of Odisha.
    • The project involves the construction of a 250m long and 30m high dam across the River Badjhore, a tributary of the River Vamsadhara.
    • It aims to preserve 5201 hectares of water and provide irrigation to 5760 hectares of land in Ganjam and 500 hectares of land in Gajapati districts.
    • The project will also supply drinking water to Brahampur City.
    • Furthermore, it includes the development of a mini hydel project at Shiali Loti, Kankata, and Dekili in the Gajapati district, with a capacity to generate 36 MW of electricity.

    Salient features of the project

    1. A centrally located Ogee-type gated spillway with a length of 90m.
    2. Construction of a 1.13 km long tunnel connecting the Chheligada reservoir with the Ghodahada river.
    3. Establishment of a canal system to facilitate irrigation in the Gajapati district directly from the dam.
    4. Implementation of a pipeline network for supplying drinking water to Berhampur in the Ganjam district.

     

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  • Assessing the Indian Economy: A Fuzzy Picture with Bright Spots

    Economy

    Central Idea

    • The Indian economy is in a state of ambiguity, with different viewpoints and statistics painting a fuzzy picture. While some argue that India is well-positioned to be an economic superpower, the true picture is not that straightforward.

    An assessment of the Indian economy based on various factors

    1. Inflation:
    • According to the MPC meeting minutes, inflation is under control, but households are witnessing an increase in the prices of goods and services.
    • While the base effect will bring down the inflation numbers, households still complain of having a cumulative inflation of over 18 per cent in the last three years.
    1. Growth:
    • The growth picture is ambivalent, with the new normal appearing to be 6-7 per cent.
    • While some argue that India is the fastest-growing economy, this is only true if smaller nations are excluded.
    • There is not too much optimism about being on track for the 8 per cent-plus growth rate, which we were used to earlier.
    1. Exports: While there has been satisfaction expressed by the new heights achieved in the exports of goods and services, exports of merchandise are not too satisfactory. For example, if refinery products are excluded from the export’s basket, there has been a fall in FY23.
    2. Investment:
    • The official position is that investment is picking up in the private sector, but data on all funding sources show that there is a slowdown.
    • Bank credit is buoyant more on the retail end than manufacturing. Debt issuances are dominated by the financial sector with manufacturing lagging.
    • External Commercial Borrowings (ECBs) have slowed down mainly due to the higher cost of loans.
    1. Consumption: The consumption picture is also fuzzy, with nominal consumption growing by 16 per cent in FY23, but this is pushed up by inflation, and pent-up demand for both goods and services post the full removal of the lockdown in 2022.
    2. Employment:
    • The average unemployment rate is around 7.5 per cent, but the concern is more on the labour participation rate, which has been coming down. This indicates a growing population in the working age group that is not interested in working.
    • Start-ups have not yet been job creators to the degree that was expected, given the push by the government over the years.
    1. Banking sector: The banking sector has emerged stronger with lower NPA levels and improved profitability, which implies that as and when the economy gets into the take-off mode, banks will be well-equipped to provide the funds.

    Facts for prelims: Basics

    External Commercial Borrowings (ECBs):

    • ECBs are loans obtained by entities in one country from non-resident lenders in another country.
    • ECBs provide an alternative source of funds for borrowers, enabling access to international capital markets.
    • They are primarily used by companies, banks, or other entities to finance activities, investments, or expansion plans.
    • The borrowing and utilization of ECBs are subject to guidelines and regulations set by the borrowing country’s central bank or regulatory authority.
    • The regulatory framework aims to control external debt, manage foreign exchange exposure, and ensure financial stability.

     What are the concerns?

    • Employment Generation: The decline in the labor force participation rate and layoffs in certain sectors raise significant challenges in terms of job creation and reducing unemployment levels.
    • Manufacturing Competitiveness: The decline in merchandise exports (excluding refinery products) indicates potential hurdles in enhancing the competitiveness of the manufacturing sector and expanding exports.
    • Execution of Investment Intentions: The gap between investment intentions and actual investments is a concern as it indicates potential bottlenecks or challenges in translating investment plans into action.
    • Consumption Growth and Affordability: Affordability issues due to inflation impacting real consumption growth raise concerns about sustained consumer demand.
    • Export Diversification: The dependence on a few economies for exports and the potential impact of a global economic slowdown on Indian exports are concerns. Diversifying export destinations and exploring new markets can help reduce vulnerability to global economic fluctuations and strengthen export resilience.
    • Effective Implementation of Banking Sector Reforms: While improvements have been observed in the banking sector, concerns about funding sources and the need for increased credit flow to the manufacturing sector indicate ongoing challenges.

    Economy

    Way ahead

    • Focus on inflation control: While the MPC has managed to keep inflation under control from a policy perspective, efforts should continue to address the impact of rising prices on households. Measures to enhance supply chain efficiency, promote competition, and reduce production costs can help alleviate inflationary pressures.
    • Promote sustainable and inclusive growth: While the current growth rate is positive, efforts should be made to achieve higher and more inclusive growth. This can be done by investing in infrastructure development, skill development programs, and initiatives that support the growth of MSMEs (Micro, Small, and Medium Enterprises).
    • Boost exports: Enhancing the competitiveness of Indian goods and services in global markets is crucial for a robust export sector. Continued efforts to improve the ease of doing business, implement the Production-Linked Incentive (PLI) scheme effectively, and diversify export destinations can help boost exports.
    • Facilitate investment: Policy measures should focus on encouraging private sector investment and reducing funding bottlenecks. This can involve improving the ease of doing business, simplifying regulatory processes, and providing incentives for both domestic and foreign investments.
    • Strengthen consumer demand: Initiatives to support consumer demand can include income support programs, targeted subsidies, and measures to enhance consumer confidence. Reducing the impact of inflation on household budgets and boosting purchasing power can help drive consumption growth.
    • Address unemployment and labor force participation: Policies aimed at promoting skill development, entrepreneurship, and job creation can help address unemployment concerns. Encouraging sectors with higher labor-intensive potential, such as manufacturing and services, and supporting start-ups and MSMEs can be vital in generating employment opportunities.
    • Continue banking sector reforms: While the banking sector has made progress in reducing NPAs and improving profitability, ongoing reforms should be sustained to strengthen the sector further. Maintaining prudent lending practices, enhancing risk management frameworks, and promoting transparency and governance will be essential.
    • Foster domestic innovation and technology adoption: Encouraging innovation, research and development, and technology adoption can boost productivity and competitiveness across sectors. This can be achieved through policies that promote collaboration between industry and academia, provide incentives for innovation, and invest in digital infrastructure.
    • Maintain macroeconomic stability: Ensuring fiscal discipline, sound monetary policy, and a stable regulatory environment will be crucial for sustaining macroeconomic stability. This can help maintain investor confidence and provide a conducive environment for economic growth.

    Conclusion

    • The Indian economy’s broad numbers look statistically realistic, but the triad of employment, consumption, and private investment has to bear fruit. Domestic initiatives have to drive the story forward, as the world economy slows down.

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    Also read:

    Indian Economic Growth Prospects: A Comprehensive Analysis